NATIONAL RECOVERY ADMIINISTRATION
CObDE OF FAIR COMPETITION
TUBULAR SPLIT AND OUTSIDE
(A Division of the Fabricated Metal Products
Manufacturing and M~etal Finishing
and Metal Coating Industry)
AS APPROVED ON SEPTEMBER 22, 1934
SUNIV. OrfFL _La.DO URPAR
Registry No. 1104--01
Approved Code No. 84--Supplement No. 52
This publication is for sale by the Superintendent of Doc~uments, Government
Printing Office, Washington, D.C., and by dlitr~ic~t ofi~es o~f thle Bure~au of Foreign
and Domzestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMM~IERCE
Atlanta, Ga.: 504 Post Office Building.
Birminghami, Ala.: 257 Federal Building.
Boston, iMass.: 1801 Custombou~se.
Buffalo, N.Y.: Chamber of Colmmerce Buiblling.
Charleston, S.C.: Chamber of Colmmerce Bulikling.
Chicago, Ill.: Suite 1706d, 201 North Wells Street.
Cleveland, Ohio: Cham~ber of Cocmmerce..
Dallas, Tex.: Chamber of Co`nmmerce BuilldingS.
Detroit, Mich.: 801r First Natilsana;l Bank; Duildling.
Hrouston, Tex.: C'hamber~ of Com~l~mereet IWilding~.
Indiallnlr olic, Ind.: Chamber olf Comme~urcee Uniilr-ling.
Jackrsonville, Fla.: Charber' of (:commrc~le ZDuilding,.
Kannsas City, Mo.: 12 ntmr vne
Los An;>+-*, Calif. : 1163i Siouth B~roadway.;~S
Louisville, K~y.: 408 Fiederal1 Du~iblineS.
nAelellphis Trenn.: 229 Fedellral Buikling=.
Minn~eapolis, M~inn.: 213 Federal7 I-uild~ingr.
Newv Orleanrs, L-a.: Room 223i-A. ~u~stlrnihouse.c
N~ew York, N.Y.: 73- Customhlcoue.
Norolklll, Va.: -Ilrc; Endt Plulme Street.
Phll~eiadelphin, Pa.: 422 Commercial Trust Buailding.
Plittuburch.ll. Pa.: Chambter of C~ommerc~ce Buildling.
St. Louis, >Io,.: 506 Olive Stree~t.
San Franlliciso, Calif.: 310g Culstc.~ihouse.
Seattle, Wash.: 809 Federal Ojffice Building.
Approved Code No. 84l-Supplement No. 52
SUPPLEMENTARY CODE OF FAIR COMPETITION
TUBULAR S]PLITI ANID OUTSIDE PRONGED RIVET
Als Approved on September 22, 1934
APreovisa'C SUIPPLEMZENTnRY CODE OF FAIR: COMPETITION FOR THE
TUB~IULAR SPLIT ANID OUTSIDE IPRONGED RIVET 31ANKUFACTUR~ING
A DIvIsION OF THE FZ\BRICATED ~METAL PRODUCTS MANUFACTURING A4ND
MIETAL FINISHIING AND METAL COATING INDUSCTRY
An applica3tion having beenl duly made pursuant to and in full
compliance wit~h the provisions of Ttle I of the National Indlustr~ial
Recovery Ac~t, approved June 16, 1933 and inl accordance with the
provisions of Section 1 of Article VI of the Basic. Code for the
FanbI-ritedl 1\etal Products Manufacturing and M~etal FEinishing
andi Metal C'onting Indlustry, apprcoved Nov~ember 2, 1933, for ap-
p'reval of a Supplemlentary Code of Fair Competition. for th~e
'Tubu~lar split a7nd Outside Pronged Riv~et MIanu.facLturingr Indlusitr9,
and hear~ing havningS been duly held thereon, and the a~nnexed~ report
on said S~uppleme~ntary Codte, containing findings with respect there-
to, havIngT beeln madle and directe-d to the Preside~nt:
NOW~\, T'IHEREFORE, on behalf of the Presidlent of the United
States. I. Hughl Ri. Johnrsonr, Adrministrator for Industrial Recovery,
pursonn"t to authority vested in me b xctv reso h
Presden, icluingExectiv Orer o. 543-A, dated December
30), 1933~r, alndl otherwcPise; do hereby incorporate by reference said
annexedl report andl do find that said Supp~lementnry Code complies
in all respects with the pertinent provisions and will promote the
p'olicy) andl purDoses of said Title of said Act; and do hereby order
that sa~id Suplplemlentary? Code of Fair Comnpetition be~ and it is
he~reby~ a pproved,'~l pr'ovidel, however, that the provisions of Article
I sec~tio~n 1 insofar as they prescribe a awaiting period betw~eenl
the tiling w~ith the Supplemientary Code Autfhority (or such agency
as may be designated in the Code) and the effective date of price
lists, as o~~irig~inlly filed and/or r~evised price lists or reviised terms
andt condlitiolns orf sale, be anld thney he~reby are stayed pending my
)TUGII S. JOHNSSON,
Adm~-inzistrlator for Inidust.r~ial R~e~covery.
UARTONu \V. 1\fURRAY,
,September a12, 1934.
873~22' 111-89 34 fi)
REPORT TO THIE PRESIDENT
The White Hiouse.
SlaR: Thlis is a report on thle SupplemerntaryI. Codc~e of Fair Comnpe-
tition for the Tubular Split andl Olutside Prongedl Rivet Industry,
a division of the Fabrn~iicatted Metal Products Mannufacturing and
Metal Finishingr and Metal Conting~ Indlustr~y, the hearilgr having
been conducted thereon in Washinglton, D.C1., January 19, 19341, in
accordance with the provisions of Title I of the National Industrial
The Tublarir Split and Outside Pronged Rivet Indlustry, being
truly representative of this division of the Fabrlicated~ Mertal Products
Manufac-turinig and Mletal Finishing~ and M~etal Coating Indlustry,
has elected to avail itself of the option of subnmittingr a Suipplemecn-
tary Codte of 1Fair Compe~ttiton, as pr1ovided~ f~r inl Section 1 of
Article VI of. the B~asic Co~de, for th~e Fab~~irictred Mctall Prodcuc~ts
Mranufacturingnr and Mectal Finiishing and Mletal Coanting Inldustry
approved by you on thle sec.ondl dayl3 of Novenhercl 193l3.
RASETH~ oF THIE C'ODE
Article I states the purpose, e o~f thle SuppIenalr~r rtory'? Code.l
Article II accurately defines sp~c~ificl terms~l eloyedr!.I. in th~e Supp>lle-
AnnTC'LE IIII This Industry~ is a dlivision,1 of thec F11br~il.~cate Mettal
Products M~nufactturiing anid M~etal Fi nish~ingl and~ Metal Coating
Industry and the labor pr~ovisions of its Bas~ic C'odi, as app~lroved
November 2, 1933, are thne labolr prvc\isiornsi of this Supplemnentary
Article IV establishes a Sup~plemelntary Cod~e Authocrity con-
sisting of five (5) mn~ll~embes to be e~lecitedl at a1 meeting~ called by1 the
Tem~porary Suppleentary Code Aulthlority,, andl givets thle Adminis-
trator the authority to appoint one addcitionlal mnembler without vote
and provides machmiery for obtaining statistics and the adlministra-
tion of the Sulpplemuenta~y~ Code.
Article V provides for thle for'mulatio ni of mnethods of uniform
cost finding and necounting.
Article VI sets forth, the3 open price provisions.
Article VII sets forth thle standardsc~ of' fair comlpe~titionn with
preference to p~ricing practices.
AIrticle VIZII prov\ides that no pr1ovisio~n relating to prices or terms
of selling, shipping, or marketing, shall aplyD! to export tr~ade.
Article IX sets forth the r~ules of F~air Tradle Practices.
Article X contains the mandatory provisions contained in Section
10 (b) of the Act and also provides for the submission of proposed
amend ments to the Supplemen ta ry Code.
Article XI provides against monopolies and monopolistic
Article XII recognizes that price increases he limited to actual
additional increases in. the seller s cost.
Article XIII states the effective date of. this Supplement~ary Code.
The Deputy Administrator in his final report to me on saidr Sup-
plementary C'ode having found as herein se-t forth and on th~e basis
of all the proceepdings in this mantter':
I find thlat:
(a) Said Supplemnentaryl3 Code is well designed to promote the
p~oicies and pur~poses of Title I of the National Industr~ial Recovery
A~ct, including r~emoval of obsctructions to the free flow of interstate
and for~eigrn commner~ce which tend to diminish the amount thereof
and will provide for the general welfare by pr~omoting1 the organiza-
tion of industry for thle purposes of cooperative action among the
trade groups, by inducingr and maintaining united action of labor
and mnanagemnent undler adequate goernmlentall sanctions and super-
vision, by elimnunat ng unfair comlpettitve practices, by promoting
the fullest possible utilizationn of the present prodluctive npancit~y of
industries, by avoid~ingr undue restriction of production (except as
may be temporarily requiredd, by increasing the consumption of in-
dustrial and agricultural products through increasing purchansing
power, by redlucingr and relieving unemployment, b-y improving
standards of Inbor, and by otherw~ise rehabilitating industry.
(b) Saidl IndlustryS nor~mally employs not mlore than 50,000 em-
ployvees; alnd is not declassified by me as a major industry.
(c) Thle Supplemnentar~y Cod~e as aypprovedl complies in all respects
w~ithl the pertinent provisions of said Title of said Act, includlingr
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and ~Subsection (b) of Section 10 thereof; and that the
applicant institute is an industrial association truly- rIeresentative
of the aforesaid Indlustry; and that said association u~nposes no in-
equitable restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not per-
mit monopolies or mnonopolistic practices.
(e) The Supplementary Code is not designed to and will not elimi-
nate or op~press small enterprises and will not operate to discrimii-
nate agaiinst them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplemnentary
IIUGH S. JOHNSON,
SEPTEMBrER 2R, 1984.
SUPPLEMEIN'TARY CODE OF FAIR COMPETITION FOR
THE TUBULAR SPLIT AN~D OUTSIDE PRONGED RIVTET
MA~NUIFACTURINJG INDUS~TRY-A~ DIVTISIONJ OF THE
FABRICAtTED METAI~L PRODU~CTSi MANUFACTURING
AND METAL FINISHIING A~ND ME~TAL COAlTING)
To effectuate the policy of Title I of thie Nat~ional Industrial
Recoveryr Act, the following plrov-isionsi are established as a Supple-
mentury Code of Fair Competition for th~e Tubular Split and Out-
side Pronlged Rivet Mfanufacturing Ind~ust~r, pursuant to Article VI
of the Basic Code of Fair Com-petition for the Fabricated M~etal
Prod ucts Mannufa~cturingll andl Metal Finiishing and. Metal Coat~ing
Industry approv~\ed by the Presidelcnt of the UInitedl States on the 2nd
day of November, 1933, and thle p-r~ovisions of thlis Supplemnentary
Code shall be the Stani.idars Of Fair Comlpetition for such Industry
and shall be binding upon evcr~y mlemlber ther~eof.
S~ECTIONS 1. TIhe term Tubul~lar Split andc Outside Pongedl Rivet
Manl~nc~ufatrin Industry "", hell~refter. re(ft'lrre to aS thle '' Inldus~tr3 "),
is defined to mean the mnanufnceturec for sle o~1 f tuula:~lr, split., and out.-
si~de-pronged~ rivets and caps, mladet olf slteel, brasns, copper, iron,
aluminum, or other suitable meltatls.
SECTION 2. The term Member ol(f' thel Inldustry "! includes, but
without limlitationl, any individuai~l, parn;tncrship,, associatio n, corpora-
tion or other form of enterpr~ise. equeedl~r in~ the Indlustry either as
an employer or on his or its ow-n behlalf.
S:EC'TION 3. The terms Presidelnt "!, Act ". andl Ad~ministrator "
as used herein, shall mean respcctively? the Prcsident of th~e United
States, Title I of the National Indlustrial Recovery Act, and t~he Ad-
ministrator for Inldustrial Recoveryv.
SECTION 4. TIhe term "L Bzasic Codec ", as usedl herein, is dlefned to
m~ean. the B3asic Codle of F~air Compe~ttition for the Fabriented M~etal
Products Mannufacturing andl Metatl Finishingr andl Metal Conting
Industry, as app~roved by the Pre~side~nt on th~e 3nd day of Novrem-
be r, 1933.
SEenowN 5. The term Sup~plementa7ry Codec Authority ", as used
hlerein, is delfined to mean the agecncyv which is to adlminister this
Supplem-entaryJ Code as hereinafter providedc-.
SiEC'TIox 6. T'he term. Institulte' ", a used~ hereinl, is defined to
mean the Inistitute of Tubulalr Spllit. and Ojutsidle Prongred Rivet M~an-
ufacturers, or its successor.
SECTION 7. The term Supplementary Codle Committee is de-
fined to mean the Executive Committee of the Institute.
SECTION 8. The terml employee "? as used herein includes any and
all persons engaged in the industry, however compensated, except a
member of the indiustry.
SECTION D. The term~ ''employer as uisedl herein includes anyone
by whom such emnployee is colnpensatedl or employed.
ARnTICL~E III-ERIPLOYMIENT PRiO\ISIONS
Th~is Indlustry is a division of the Fabricated Metal Products
Mannufacturing a ndl Metal Finishing and M~etal Coating Industry and
without limnitationl the wag~e? hour and labor p~rovisions in. Article III
of its Bansic Code as a7pprov,\ed by the Presidlent., Noviember 2, 1933,
including Siectioni 1 of sanid Article III, byr whlich the prov-isions of
subsections (1') ,(i') and (3) of Section 7 (a) of Title I of the Act are
made conditions orf this Code, ar~e specitically incor~porated herein
andl madle a panrt h~ereo~f as the w-age, hour andl labor provisions of
this Supp~e lementry Code.
AnnICEx I\V-Ona.1x xzrnONL AND XDMINISTRAIONN
S~EC'TION 1. (a) Durii~ngr the period not to exceed thirty (30) days
following the effecctive date, the C'ode Committee will constitute a
Temporary~ S-upp:'lementa ry Code Authtiority unt il the Supplemienta ry
Codle Aulthority is elected.
(b) Therie shall be constitutedl withiin the thirIty (30) day period
a Sulppleelntaryl Codre AulthIorityv cons ist ing of fiv~e members, to be
electedl by a mlajority vote of thle mnlnembes of the Industry, at a
meeting called by the Temporary Supplementary Code ALuthiority,
upon ten (10) days notice sent. by registered mail to all members of
the Indulrstryv whose namecs may ber asc~ertainedl after diligent search,
who1 may03 vote either. in person or by proxy, each m~ember to have
one vote. The members of the Supplementaryl Clode Authority first
elected shall se~rv\e until Junet, 1935, and~. th~er~efter members of the
Supplementary Code A~uthlority shall be elected annually at a
special meeting of all members of the Industry to be held during the
month of June, each year, the exact date of which shall be deter-
mnined byr the Sup~plemntary Code Authority, and notice given by
r~egistered mail at least fifteen (15) days prior t~hereto.
(c) Ai vaBca1Cy in the mlember~ship of thle Supplemecntary Code
Authority. may be filled by a majority vote of the remaining mem-
bers of thle Sup~plemientaryv Code A-uthor~ity.
(dl) In addition thereto the Administrlator may appoint one mem-
ber of the Supp~lementary Code Authority who without vote shall
serve without expense to the Industry. The representative who may
be appointed by th~e Admninistrator shall be given reasonable notice
of and may sit at all meetings of the Supplementary C~ode Authority.
SECTION e. The Institute or any Association, directly or indirectly
pa rt~icipating in the selection or activities of the Su'pplementary Code
Authority, shiall (1) impose no inequitable restrictions onr memnber-
ship and (2) submit to the Administrator true copies of its Articles
of Association, By-LawFs, Regrulations, andl any amendments when
madle thereto, together wvith. such other information as t.o member-
shlip, or~ganizatio~n, andl activities as thle A~dmnilstrator miay deem
necessary to effe~ctualte the purposles of th~e Act.
SEC.TIUX, 3.1 inOrder~l that thle Suppljrr:!lcementary Cod~e Authlority shall
at all tihnes be truly re~presenlt~ta\tiv of thle Indusirtry and in other
resp~ec~ts comply with the pr'\1 ovsoso h c, thle Adrministrator
mayn prescrlibet such hear~ing~s as h~e may~~ deeiln p~rop'r; and, thereafter,
if hie shall find th~at the Supplemlt~ent n ry C'od-e Authlority is not truly
rep~resentative or does not inl other respects comply w-ith the pro-
visions of the A~~ict, may rrequire anl apin-oprllliate moduiifiention of the
Supplemlentary Code Authlority.
Seenu,,s 4. All members of th~e Indu;stry~ ar~e subject to the juris-
dictionl of the Supplementary C'ode Auth~ority; sh~all be entitled to
participate in and~~ share the benefits of thze Supp.lementary Code
Authollrity; and shall be entitled to vote in the selection of the
Supp'lem'etntary Code Author~ity as provided in Sect~ion 1 of this
Article andl in aC'(Iccdnlc e withl the restrictions set forth in Section 5
of this Ar~ticle.
SECTeni 5. (1) It being found necessary, inl order to support the
administration of this Supplementary3 Code andc~ to maintain the
tandar~ds of fair competition establishedl hereunder and to effectuate
the policy of the Act, the Supplementaryv (code Authority is
(a) To' incur such reasonable orbligfations as are necessary and
profpe~r for the foregoing purposes, andc to~ meet such obligations out
of fuds wh;Eich may be ralised~ as her~einiafter proi'\ded and which
shall be held in trust for the purploses of thle Sup~pleme~ntar~y
(b) To submit to the Administrtrato for hlis apprloval, subject to
such~ notice and oppor'tun'ity to, be hea~rd~ as h~e mnay dleem neces-
sary., (1) an itemized budgle~t of its e-timatedl expenrss for the f'ore-
go;(ing purposes, and (2) an eqjuitable basis up~on wh~lich the fuinds
nece ur~~IIy to support .suchl budlget shasll b~e conltriute~ttd by' me"bers
of the Induslrtryl;
(c) After such budg'lret and basis of conltribution have been ap'-
pr~ovedl by the Ad~ministrator,, to determine and obtain equitable
contribu~tionl as above set forth by all suich members of the Indus-
try, and to that end, if necessary, to institute legal proceedings
the~refor in its own name.
(2) Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Supple-
mentary Code Aulthority, determninedl as h~ereinabove provided, and
subject to rules and regullationns pertaining thereto issued by the
Administrator. Only members of the Indlustry complying with the
Supplementunry Code and contributing to thie expenses of its Aid-
mlinistration as hereinabove providedl, unless duly exemp~ted from
making such contributions, shall be entitled to participate in thle
selection of members of thie Supplementa r~y Codie Authority or to
receive the benefits of an~y of its voluntary activities or to make
use of any emblemn or Iinsigmia of the National Recovery Adminis-
(3) The Supplementa/ryT eCde Authority shall neither incur nor
pay any obligation substantially in excess of the amount thereof
as estimated in its alpprov~ed budget, and shall in no evelt; exree~d
the total amount continued in the appr'ovedl budget, except upon np-
p~roval of thle Adm~inristrator; andl no subsequent budge"'t shall con1-
tain any defic-iency itemi for expendllittuc~s in excess of prior budget
estimates except those hli~ch the! Administratorr shall have so
SECTIO G. The Suppilemntaryr Code Authority shall have the1o~d
followinga further powecrs and duties, subject to such rulets andl
regulations as mayS be preuscr~ibedl by the Ar~dm~inistrator.
A. Thle Sutpplemntaryl' Code ~AuthorityT shall have power to in-
vest~igate all comiplaints filed Iby one member of the Industry against
another lmember of the~ Industry,\ subject, to such rule: andn ~reulations
as the Admuinistrntor may prescribe.
B. To adopt by-law~s and rules and regulations for its procedure
and for the administration of the Supplemnentary Code.
C. To obtain from members, of the .Industr~y such information andr
reports as are required for the administration of the Supplementar~y
Codle. In addition to information required to be submitted to the
Supplem~entary Code Aiuthor~it, miemlber~s of the Industry subject
to this Supplem ntary~ Code shall furnish such statistical information
as thle Admninisitrator may deem. necessary for the purposes recited. in
Section 3 (a) of t.he Alct to such Fed~eral and State agfencies as he may
designate; provided that nothing in this Supplementary Code shall
relieve any member of the Industry of any existing obligations~ to
furnish~ reports to any13 Gover~n nment Agency. No individual report
shall be dlisc~losed to atny other member of the Industry5 or any other
party. except to such otherr G~overnmental agencies as may be directed
by t he Admni nistra~ntor.
D>. To, uise such tradle. assoc~iations anrd other agencies as it dleemis'
p'ropejr for the enR1rrying out, of any of its netivities provided for
here~in. provT~ilide tha:t nIothling herein shall relieve the Supplementasryr
Code Authority of its d2uties or res-prnsjibilities under this Supple-
mentary C'odle and that suchl trade alssociations and agencies shall at
all times be subject. to andi comply with~ the provisionsi hereof.
E. To mnake r~ecom menda~tions to th~e A dmnin ist rato~r for the cord i-
nation of the administration of this Supplementary Code with such`
other Codjies, if any?, as mnay be related to the Industry.
F. To appoint a Tradle Practice Comnmittee which shall meet with,
the trade practice committees appointed under such other Codes as
may be related to t.he Indust~ry for the purpose of formulating fair
trade practices to govern th~e relationships between employers under
this Supplemlentary Code and under such other Codes to the endi
th~at such fair trade practices maty be proposed to the Admlinistrator
as amendments to this Su~pplemnentary Code and such other Codes.
G. To recommend to thle Adminlistrator further fair trade practice
provisions to governl members of the Industry in their relations w~ithl
each other or with other industries and to recommend to the Admlini-
trator measures for industrial planning, including stabilization of
HI T~o study, in cooperation with such recognized organization
as the Bureau of Standards, questions of devising adeentlte standards
of dimensions and quality for the products of the Industry, with t~he
view t~o their recommendation to and adoption byr the Industry.
I. To submit to the Administrator for his approval a standard
arrangement for setting up data to be contained in published price
SjECTION 7. Every employer shall provide for the safety and health
of employees during the hours and at, thle places of their employ-
mient. Standards for safety and health shall be submitted by the
Supplementary Code Aut~o'rity to thle Admiinistrator w~ithin three
(3) months after the effective dante of thle Sulppleenirtary Code.
SECTION- 8. If the Administrator believes thant any action of the
Supplemecntary Code Atuthority. or, any. aency1 thereof is unfair
or unjust or contl~rar to thle public interest. thre Adlministraltor may~
require that such action be susplendled. to afford an1 opp~or~tunity for
investigation of the mnerits of such action. Further action by such
Supp~lemerntary Code Authority or' ncrency regarding the matter comn-
plained of may be taken if applrov-ed y the A~lc dministntrator but shall
not be taken if di-sapp~rov-edl by the Adlminisjtrator within .30) das of
notice to him of intentions to proceeds with~ such action.
CEC~Tws 9. The Supplem'entary Codle Author~ity, as such agency
sihall also, from time to time, furnish~ to thet Basic Codle Authority,
designated in said Basic Code, sulch information as may be r~equiredl
to be fulrnishecd under thre terms of said Baisic Code.
SECT~cnS 10. ~Noth~ingr continued in this Supplemnentary Code shall
constitute the members of theP Suplem~l Ientary'3 Code Aulthor~ity part-
ners for any purpose. Nor shall any mnembler of the SCupplementarylcla
CoeAuthority be liable in any ma~nner to anyone fo any cto
any other member, offcer, agent, or employee of the Supplemlentary
Code Authority. NTor shall any member of thle Supplem'entary Code
Authority exercisingr reasonable diligence in th~e conduct of his duties
hiereundler, be liable to anyocne for any~ action or omission to act under
this Supplementary Code, exicept for his own wilful malfeasance or
non -fesa n nce.
SEcTroxS 11. Any or all information furnished to th~e Supple-
mentaryv Code Authority by any members of the Indlustryr shall be,
pursuant to the provisions of th~is Supplemnentary Codle, subject to
ve~ificatio~n by an examination of th~e per~tinenit or necessary books,
accounts and records of suich menbter by an impartial agency agreed
upon by the Supplementaryr Code Authority and the member of
the Industry in question, or, failingr such ,agreement, by an impartial
agent desigrnated by the Admlinistraltor. Such examination shall be
made only to the extent permitted by thle Act and such rules andi
regulations as may be prescribed by the Admlinistraltor. The cost of
eac~h such examnination shall be borne by t~he Supplementary Code
-AuRICia V;-Cost FIN-DING AND AccousTnwo
The Supp~lementary Cod'e Authority shall cause to be formulated
methods of cost finding andl accountingr capable of uise by all members
of the Industry, andl shall submiit such methods to the Administra-
tor for review. If approvedl by the Administrator, full information
concerning such methods shalll be made available to all members of
the Indust~y.. Thereafter, each member of the Industry shall utilize
such methods to thne extent found practicable. Nothing herein con-
tainedl shall be construed to permit the Suppeleme nturly Code A'u-
thlority, anyl agent thler~eof, or any member of thne Indulstry to sug-
gest uniform additions, percentageso or itlerenitials or other uniform
items of cost which are designed~ to bringaou rbtay nfomt
of costs or prices.
ARTICLE TTI-OPEN PRICE FIING(I
SECTION 1. Each member of the Industr~y shall file with a confi-
dential and disintere~stedl agent of the code authority or,~ if none,
then with such an agent dejignated by the Admuinistrator, identified
lists of all of his prices, discounts, rebates, allowances, and all othe
terms or conditions of sale, hereinafter in this article referred to as
" price terms ", w-hich lists shall comrplete~ly and accurately conform
to and represent the individual pricing practices of said member.
Such lists shall contain the price terms for all such stand rd products
of the Industry as are sold or offered for sale byv said member and
for such non-standardl products of said member" as shall be desig-
nated by the Supplementary Code Authority. Said price terms
shall in the first instance be filed within ten (10) days after the
election of the Su~pplemlentary Code Auth~ority. Price ter~ms and
revised price terms shall become effective three days subsequent to
the receipt thereof by said At~gent. Immediately upon receipt
thereof, said agent shall by telegraph or other equally prompt means
notify said mlember of the time of such~ receipt. Such lists and
revisions, together w~ith the effective time thereof, shall upon receipt
be imimediately and simulitaneo usly distriblutedr to all memltbersi of the
Industryg and to all o~f their customers who have applied therefore anld
have altfllered to dfe~ny' fthe cost actually incurred. by the Supplemen-
tary3 CIodet Author)lity' in the preparation annd distr~ibutionl thereof and
be avafilable for inspectionl by anly of their cuistomerc~is at th~e offc~e of
such agent. Sanid lilits or retvisjions or an~y parlt thereof shall not be
miade available to any person until released to all memnber~s of the
Industry andi their customerss, as aforesaid; prov-idedl, that prices
filed in the first instance shall not be released until the expiration of
the aforesaid ten (10!) day period after the election of the Supple-
mentar~y Code Author~ity. Thne Suzpplemaentary Code Authorityg
shall maintain a permanent file of all price terms filed as herein
providled, andt shall not destroy any part of such records except upon
written consent of the Administrator. UIlpon request thre Supplemen-
tary C'ode Au~thority shall furnish to the Administrator or any duly
designated agent of thle Admninistrator copies of any such lists or
revisions of price termss'
SECTION 2. W'hen any member of the Induistry has filed any re-
vision, such member shanll not file a higher price within forty-eight
SECTION 3. No member of the Industry shall sell or offer to sell
any products of the Industry, for w7chich price termls have been file~~d
pursuant to the provisions of thzis article, except in accordance with
such price terms.
SECTION 4. No member of the Industry shall enter into any algree-
ment,, understanding,) combination or conspiracy to fix or mnaintalm
1 See paragraph 2 of order approving this Code.
price t~erms, nor cause or attempt to cause any member of the In-
dustry to change his price terms by the use of intimidation, coereton,
or any other influence inconsistent with the maintenance of the free
andl open market w~hic~h it is t~he~ purpose of this article to create.
AnICLE VTII--COSTS AN'D PRICE CUTTING
Se~IcTrOx 1. The standards of fair competition for the: Induistry
with reference to p~ricing: practices aire declared to be as followFs:
(a) Wrilfully destructive price cutting is an unfair method of
compelttition andl is forbidden. Any member of thie Industry or of
any other Indlustry or the customers of either may at any tinle comn-
plain to the Supplementary Code Authority that any filedl price
coinstitutes unfair competition as destructive price cutting, imp~eril-
ing small enterprises or tending towa~rd monopoly or t~he impairment
of code w~ages and w~orkingr conditions. The S'upplementary Code
Aut:hority shall within 5 days af-ford an opportunity to the member
filing the price to answer such complaint and shall within 14 days
mnake a ruling or adjustment thereon7. If such ruling is not con-
curred in by either party to the complaint, all papers shall be re-
fer~red to the Research and Planning D~ivision of N.R.A. which shall
render a report and recommendation thereon to the Administrator.
(b) W\hen no declared emnergnenc exists as to any given product,
there is to be no fixedl minimum basis for prices. It. is intended that
sound cost estimantingr methods should be used and thiat. consideration
should be given to costs in the determination of pricing policies.
(c) WVhen an emergency exists as t~o any givecn product, sale below
the stated minimum price of such product, in violation of Section 2
hlereof, is forbidden.
SECTION 2. Eml~ergcency Pr'ovi'si:oi.--
(a,) If the Administrator, a after investing tion shall at. any timIe find
both (1) that an emergency has arisen within the Industry adversjely
affecting sm-all enterprises or wages or labor conditions, or tending
toward monopolyv or other acute conditions which tend to defeat the
purposes of the Act; and (2) that the determination of the stated
miinimumn price for a specified product within the Induustry for a
limited period is necessary to mitigate the conditions constituting
such emlergency and to effectuate the purposes of t~he Act, the Supple-
mnentary Code. Authority may cause an imnpartial agency to investi-
gate costs and to recommend to the Administrator a determination
of the stated minimum price olf the product nifected by the emergency
and ther~eupon the Administrator may proceed to determiine such
stated minimum price.
(b) W\hen the. Administrator shall have determined such stated
minimlumn price for a specifiedl product for a stated period, which
pnice shall be reasonably calculated to mlitigatee the conditions of such
emecrgency~ andl to effectuate the purposes of the National Industrial
Recovery Act, he shall publish such price. Thereafter, during such
stated period, no member of the Industryr shall sell such specified
products at a net realized price below said stately minimum price and
any such sale shall be deemed destructive price cutting. From time
to time, the Supplementary Code Authority may recommend review
or reconsideration or the Admiinist~tratr many enuse any dectermina--
tions her~eundrer to b~e r~eviewedc l or recconsir ereed and appriopriatet
ARTICLE V~III-ExISPRoT TRADE
N~o provisions of this Supp~lemntary~'S Codle relating to prices or
terms of selling, ship>ping,, or mla rketing~, ishall app:ly to export trade
or sales or shiipmients for exp~ort tr~ade. "L Expor~t Trade "' shall be as
defined in the "i Exp)ort Tradlle Act ",? adop~ted Acpril 10, 1918.
AnnOCLE 11--FA.E TRADE PRACTICES
SECTION 1. The following sec~tio-ns are adopted as rules of Fair
Trade Practices and shlall be binding upon all members of the
A. No member of the Indu~stry shall knowmingly withhold from or
insert in any quotation or invoice any statement that makes it in-
accurate in any material particular.
B. No member of the Industryv shall secretly offer or make any
payment or allowance of a reba'te, refund, commission credit, un-
earned discount or excess allowance, whellthr in the form of money
or otherwise?, nor Shall ai membl'ter of the industry secretly offer or
extendl to any customer any special service or privilege not ext~endedl
to all culstomecrs of thie samre class, for thze purpose of influencing a
C1. No mlembl~ er of the Indus~try shall defame a compllletitor by
falsely imlputing~ to him dishonorable conduct, inability to per~formn
contracts, qluestionable credit standing~, or by other false replresenta-
tion, or byS falsely disparaing tlrhe grade or quality of his g~oods.
D. Thiere shall b~e no false manrkingji or brandling of any p~rodullct of
the Ind~ustry which~ has1 the tendlency to mislead or decetive cus~tomelrs
or p~rospctive c~u-tolmel.rs, eth~er as to the grade, quality, qluantity,
subs~tanlce, churneter.. natuire, origin, size, finish, or preparationio of
any produlctt of the Indus~try or otherwise.
E. It is an unfair tradc~e 'practice to imitate or simulate the trade
markr, trade name, p:ack~age wral'pp'r, or label of a completitor's prod-
uct to such a dlegrlee as to deceive or have a tendneny to deceive
F. Thle false classification of any products of this Industry for the
purpose of securing lower freight rates shall be an unfair method of
Gr. It. is an ulnfair trade p~ractirce to ma~ke, or r~lcaus or kmnowingly
permit to be made, or publish any false, materially inaccurate or
deceptive statement, by way of advertisement or otherwise, whether
concerning th~e grade? quality, quantity, substance, character, nature,
origin, size, finish or preparation of any p~rod uct of thne I[ndustryT or
the credit, terms, values, policies, or services of any member of the
Industry! or otherwise, having the tendency or capacity to mislead
or deceive customers or pro-lpective cus~tomer~s.
H. The securing of confidential information concerningg the busi-
ness of a competitors, by a false or misleading statement or rep~resenta-
tion, which is properly regarded by it as a trade sec~ret or confidential
within its organization, other than information relating to a viola-
tion of any~ provisions of the Supplementary Code, is an unfair trade
I. No mlember of the Industry9, directly or indirectly, by any means
wrhatsoev-er, shl~nl (1) sell any of the products enumerated in the
price lists filledl as p~rovided for in Article VTI) at prices other than
those so, filedl-, or (2) extend any servicing w~hich) would have the
effect, .directly or indlirectly, of reducing the net prices so determiined.
Prov-ided, how'ever, thatb the leaisingi of riveting machines by a manu-
facturer underC~ leases by. the provisions of which the compensation for
the ser~vicing of su~ch machines by the manufacturer during thie termi
of their rrental is included in the price of the rivets supplied by suich
manufacturer to the lessee, andl under the provisionse of which
rebates o-f rrental of the machines are made in consideration of thle
use of spcifiedl qulantities of rivects supplied by saidl manufacturer
to the lessee. shalnl not b~e cons~truedl as violation of thiis Siection.
J. The making of any sale or contrnet of sale of any product under
any des~crip~tion which does not fullyv describe such product in terms
cutomarilyv used~ in the Indlustry,. and the ennceling,r in whole or in
par't~, or perm"itting the cancellation, in whole or in part, excepting
where thle seller is at faullt, of any1 contract of sale of any products,
excep-t for a7 fair consideration,. or paying or allowing to any pur-
chaser in connection with the sale of any product any rebate comi-
mission. credlit. discount, ad~jusctment, or similar concession other
thanr as is pcrm~ittedl by the Supplemnentary Codle and specified in the
conltractt of sale. ar~e unfair trade practices.
KZ. 1\elembers of the Indurstry shall not contract for sale of prod-
Ilets covecr!ed~ by this Suipplementar y Code for longer than calendar
quarterly periods. All shipments on contracts shall be made withiin
15 days after the exp~iration dlate, or as soon thecreafter as the seller
rnn mnnlufneturee andl ship thle same. N~o quarterlyl contract shall be
mnade monre thian 30 day\s prior to the begrinning~ of the calendar quar-
ter, and- shall be at the price effective at the time of making the
L. No members of the Industry shall make or =ive to any Buyer
of atny produlrct of the Indulstry, any guaranteed or protection in anyv
form 7cninins decline in thle market price of such product after ship-
li. No, mrcilembe of the Industry Shlall consign replacement rivets
with a1 dictr~ibutive mned-ium of any characters, or industrial rivets
~with any! consumer. except underr clrrcumstance~s to be defined by the
Supplemetntary Codel Authorit and~ aplprovedl by the Aidministrator,
where p~eculine c~ir~culmstan cesI o-f thle Indlustryv require thle practices.
NI;. 'No members l of th~e Indlustrv shall mak~e Inyl arrangement with
a jobber or~l dealer w~herebyg such jobber or dealer nets bothl as agenlt
andi as jobber or deleril in a specific tran11ac~tion and thereby receiv-es
both th~e jobber's commrissionl or dealer's discount anid the agrent.'s
commni.sionl on thle samne transaction.
O. Thle continuance k~nowingly by a member of thie Indlustry in
its or hiis emp~loymie nt of n~ny agent wh~o shall divide h~is commission
with a buyer or the arrent of th~e b~uer, without th~e krnoledwe of
his employer, is prohibitedl.
P. Alembers of the Industry shall not perm~it. the re~tur~n by any
buyer of any product covered herein, delivered in full comp lance
with all the terms andi condlitionis of any contrnet, except products
defective in material or wTor~kmansh~ip, nor shanll any such member of
the Induistry purchase or repur~chlase~ such priodlucts after the d:ehv\er~y
thereof by whomnsoever deliv-ered to? such buyrlc. EIxceptionl may be
made in cases where the product is srhowrn on thle current price list
and the buyer reports in goodl faith wI~ithi tenl dalys after rec~ei~t. of
the shipment that. an error has been made by h~im in order~ing; in
which case the return transportation charges must be prepaid and a
reasonable handlling charge may! be madnie based on the invocice value
of tfie goods. Exception m~ay also be mlade t~o permit the return of
gaoodls for wh~ichl the pur~chaser rcfu~ses to pay!.
Q. The making or issuing of any guarantees having a, tendency to
mislead a buyer, is an unfair trade practice.
R. No member of th~e Industry shall publish or circulate unjusti-
fled or unwarranted threats of legal proceedings which tend to or
have the effect of harassing competitors or intimnidating their
cu stome rs.
S. Quoting a total price on any schedule of materials which does
not showv the sum of the regular unit prices of the articles comlpris-
ing the schedule, constitutes unfair competition. Where an ar~iticle
consists of two or muore parts which thlemlselves are considlered~ units
by the Industry, the unit price of the comnbination article shall be
the sumi of the unit prices of the articles which comprise it and the
invoice shall list each1 iteml separately w~ith its price. TPhis rule shall
not b~e construed to prevent, the grannting of quantity dicounc~llts.
T. The giving,, or lending, of any material oir thle renderjingi to any
purrchaiser of any product., in connection with~ the sa~le of such product,
of any service, unless fair compensation for such material or service
shall be paid by such purchaser, is an uinfair trade pIractice. Pro-
videdl, however. that the lensingr of riveting mnc~hines by a manu-
Ineturer under leases by the p~rov.isions of w~hic~h the compyensation
for the serv\icingr of su~ch maschines by the mannufacturer during the
term of their rental is includedc- inl the p~ric~e of the r~ivets suppliedl by
suchi manufacturer to the lessee, and under thle provisions of whlichi
rebates of rental of the mnc~hinesj are madle in considePration of' the
use of specified~ quantities of rivets sullppiedl by saidi manufacturer t~o
the lessee, shall not be construed as violation of this section.
U. The announcement of price changes by any member of the
Indlustryr to its sales organization or to any buyer prior to the effee-
tive date of suchi changes. is an unfair tradie practice.
VT. No member of the Indlustry shall give, permlit to be given, or
directly offer to grive, anythingi of value for the purpose of influencing
or rewarding the action of any emlployee, agent or representative of
another in relation to t~he business of t'he employer of such employee,
principal of such agent or the r~epres.ientel party, without the knowl-
edge of suich employer, principal or party. Thiis provision shall not
be construed to prohibit free and general distribution of articles com-
monly used for adv~ertising except, so farI as such articles are actually
used for commercial bribery as hereinabove defined.
Wt. No member of the Industry shall wilfully induce or attempt to
induce the breach of existing contracts between competitors andi their
customer's by any false or dleceptive means, or interfere wvith or
obstruct the performance of any such conltractual duties or services ~
UNIVERSITY OF FLORIDA
UIII II IIIPIYIl YlllllllilllllllllllIIRAIIIIIl
14: 314262 08856 2433
by any such means, with the purpose and effect of hampering, injur-
in r em~barrassingr c~ompctitor~s in their business.
X.No member of tht~e Indcustryy shall recquir~e that the purchase or
lense of any goodsl be a. pre-requiisite to the purchase or lease of any
other goods. This provision. shall not be interpreted as prohibiting
the leasing of r~ivet settingr machines by a memlber of the Industry on
a basis providing for the enncellation or reduction of a stipulated
rental ini c~onsidetratio~n of thle pulrchanse of a stipulated quantity of
SECTION ]1. This Supp~lementaly lry cde and all the provisions
thcreolf are expressly made subjec-t to thle right of the President, in
accordance with thne proviions of sub-section (b) of Sec~tion 10 of
the Act, from time to time to cancel or mnodify any order, appr~oval
licenses, rule or regulation :issued under the said Act.
SECTION 2. This Supplemnentarly Code, except as to provisions re-
quilred by the Act, may be modified or amnended on the basis of
expyperiencor ch angels in ci rcumnstances, such mod ifications or amend-
mlents to be based upon application by thle Supp~lemlenltary Code
Authority or other Repr>1esentativ~e group within this Indlustry to the
Administrator and such notice and hearingr as he shall specify and to
bec~omec effecctivea and be a part of this Supplemlent.ary Code on ap-
preva\l by the Adm~linistrator.
SECTION 1. NO plrovision of this Supplementary Code shall be so
applied as to permit monopolies or monopolistic practices, or to
chiminate, oppress, or discriminate against. small enterprises.
ARTICLE XII.-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of co-nsummatio~n if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except suchG as may be required to meet individual cost
should be delayed, but when made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
ARTICu;E XIII--EFFECTIVIE DATE AND DonanowO
This Supplementur~y Code shall become. effective at 12:01 o'clock
(~Easfternl Standard Timae) on the tenth day after it is approved by
the President and shall continue in effect. until June 16, 19.35, or the
earliest date prior theretotr on which~ the Pr~esident, shall, by procla-
mation, or the Congre~ss shall, by joint resolution, declare that the
emlergnc y recogn'ized! by Section 10of Title I of the National Indus-
trial Rec~overy~ Act hias endlred.
Applroved~r Codle No. C4--Sumlementlleu No. 52.
RegbistryS No. 1104-0.