For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 84--Supplement No. 20
Registry No. 1104--09
NATIONAL RECOVERY ADMINISTRATION
SUPPLE MENT ARY
CODE OF FAIR COMPETITION
MACHINE SCREW NUT
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON MlAY 5, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
This publication is for sanle by the Superintendent of Documents, Government
Printing Off~ice, Wlashingrton, D.C., and by district offces of the Bur~eau of
Foreign and~ Domestic Commerce..
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
A\tlanta. Ga~.: 504~ Post O)ffce Building.
'Birmingham, Ala.: 257 Federal Building.
Btostonll, hlass.: 1801l Custombo~-use.
Bu~ffali., N.Y.: Chiamber o~f Cormmerce Building.
C'harl~ston, ~S.C.: Clamlber of Commnerce~ BuildinS.
Chienlgo, Ill.: Suite 1706,. 201 No~rth Werlls Street.
Cleveland, Ohio: Chamber of Commerce.
Dallius, lTex.: Charmbe~r of Comm~erce Build~ing.
Detro:t,, M~irc.: 801l First N'ational Bank Buildinig.
Houiston, Tex.: (.hamllber of Comime rce Building.
Indimrnnaolis,~ Indi.: Chamber of Comme~rce Building.
Jalk-cksnville,~ Fla.: io~bumbr of Commierce Building.
Kansusl city. Mlo.: 1028 Dalltimo~re Aveniue. *
Los Ang~reles, C'alif.: 1163 South B~roadway.
-Louisville, Ky.: 408S Federal Building.
nAelemhis, Tenn.: 220 Fedieral Building.
A~ilaneapo~li~s, Ilinn.: 213 Federal Building.
N~ew Or~leans. Ln.: Rlrom 2'25j-A, Customboluse.
Nuew Yo~rk, N.'. : 7i341 Customhouse.
Norfolk, V'a.: 40(6 East Plume Street.
Phiiladelplhiai, Pa.: 422 Commuercial Trust Building.
Pittsburgh,. Pa.: C'hamber of Commerce Buildinig.
Portland, Oregr.: 215j Newl Pos~t Office Building.
St. Lo~uis, Nle.: 500G Olive Street.
San Francuisco, Cal-f.: 310 Customuhouse.
Seattle, W\ash.: 8093 Fe~deral Office Building.
Approved Code No. 84--Supplement No. 20
SUITPPL;EM]EN\TARY CODE OF FAIR COlMPETITION
MACHINE SCREW7 NUT MIANUJFACTURING
As Approved on ]May 5, 1934
~APPc~rOVIN SUCPPLEMIENUTARY CODE OF FAIR COM~PETITlION FOR THEB
AfIAC'HINE SCREW NUT IMANFACTURING INDUSTRY
A DIVISION OF THRE FABRICATED MLETAL PROD~C'TS MIANUFCTUING AND
METAL FINISHING AND MET~?AL COCATING INDUSiTY
Aln application having been duly made p~ursia~ntt t and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in neclordcance with the
Provisions of Section I of Article VI of the BJasic Code for the
F~abr~iented Mletal Products Manufacturing and Mfetal Finishing and
Metal Coating Industry, approved Novemlber 2, 1933, for approval
of a Supplementalry Code of Fair Competition for the Machine
Screw Nut Manlufacturingl Indlustr~y, and hearing having been. duly
held thereon; andl the annexed report on said Supp~lemlentur~y Code,
containing findings with respect. thereto, having been made and
directed to thie Presidelint:
NOW7~, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Adminiistrator for Industrial Recovery,
pursuant to authority vested in me byy Execultive Orders of the Presi-
dent. including Executive Order No. 6M~3-A, dated Decemrlber 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Supplementary Code complies in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that
said Supplemnentary Code of Fair Competition be and it is hereby
approved; providedl however that the provisions of Article V, Sec-
tion 2, insofar as they~ prescribe a waiting period betwrteen the filing
with the Code Authority or such agency as many be designated in the
Code, and the effective date of price lists, as originally filed and/or
revised price lists or revised terms and conditions of sale, be and the3y
hereby are stayed pending my further Order.
HUGH S. JOHNSON,
Administrator fopr Indudstriarl Recovery.
Approval recommended :
A. RE. G)LANCY,
Division Adm i;nistratfor.
2Mayi 5, 1934.
li7213" 544--34 34 (11
REPORT TO THE PRESIDENT
The WFChite Hous~e.
SmR: This is a, report on the Supplemeentary Code of Fair Com-
petition for the Mfachine. Screw Nut M~anufactur~ingf Industry, a
division of the Fabricated M~etal Products Alanufacturing and M~etal
Finishing and Jfetal Coating Industry, the hearing having been con-
ducted thereon in Washinat~on, D.C., February 2! 19341, in accordance
with the provisions of Title I of the National Industrial Recovery
The M~achinie Screw Nut Mfanufacturingr Industry, being truly
representative of this division of the Fabr~ientedl Me~tl Products
Manufactulr~ing and Metal Finishing and Me~tal Coating Industry,
has elected to avail itself of the option of submnit~ting ~a Supple-
mentary Code of Fair Ctompetit~ion, as plorovided for in Section 1
of Article VI of the Basic Code, for the F~abricated 1\Ietal Products
Mannufactur~ing and M~etal Finishing~ and 1\Ietal Coating Industry
applroved by you on the second day of Novemlber, 1933.
nistrmiE OF THE CODE
Article I states the purpose of the Supplemenltary Code.
Article II acc-urately defines specific terms emiployved in the Sup-
Article III. This Ilndustry is a division of the Fabricated Mletal
Products Manullfacturingl and Metal Finishing and 1\Ietatl Coat~ing
I~ndustryS and the labor provisions of its Basic C'ode, as approved
November 2, 1933, are the labor pr~ovisions of this Supplementary
Article IV estabisjhe s a Supp~lementary Code: Authority consisting
of five (5) memblllers to be elected by the; members of the Industry
at a mleeting~ called by thie Temlporar~y Supplemnentary Code Author-
ity, and gives th~e Admlinistratorr the aulthlority to appoint one addi-
tional member without vote aind provides mnac~hiner~y for obtaining
statistics and( the adminiistrantion of t.he Supplementary Code.
Article V provides for miethodsj of setting up and revising price
Article VI prlovides for derterminingr the lowest reasonable costs of
the products of this Indlustr~y.
Article VTII sets fourth the unfair trade practices of this Sup-
phonentaryar~ Cdce which ha~s been esp~ecially dlesignedi to o~ffset unfair
competition in th~is division of the Indlustrly.
Article VIII prIovides a gai nst mlono~ol ies a n miIonopolistic
Article ~IX contains thne mandatory provisions contained in See-
tion 10 (b) and nlso provides for the srlubmission of propo~~lset d am~end-
ments to the Supplemientaryg Code.
Article X recognizes that prIice incre1a~ss be limited to actual ad-
ditional increases in the seller's costs.
Article X~I states the effective date and duration of this Supple-
meltu r~y Code.
Thle Deputy Administrator in his final report to me on said Sup-
plementary~ Code having found as herein set forth and on the basis
of all the proceedings in this matter:
I find thiat:
(a) Said Supp'lementary Code is well designedl to promote the
policies andc purposes of Title I of the National Industrial Recovery
Act, includineg removal of obstructions to the free flowc of interstate
and foreign commerce which tend to diminish the amount th~r~eof and
will provide for the general w~elfare"by promoting the organization
of industry for the purposes of cooperaotive action among the trade
groups, by inducing and maintaining united~ action of labor and
management under adequate governmental sanctions and supervision,
by eliminating unfair compecttitive practices, by promoting the fullest
possible, utilization of the present productive capacity of indlustr~ies,
by avoiding undue restriction of production (except as may be tem~-
porarily required), by increasing the consumption of indlustr~ial and
agriculltulral products through increasing purchasing power, by re-
ducinga and relievingr unemployment, by improving standards of
labor, and by other wise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by mre as a major industry.
(c ) The Supplementary Code as approved complies in all respects
withl~ the pertinent provisio~ns of said Ttle of said Alct, including
without limitation Subsection (a) of Section 3, Subsectio~n (a) of
Section 1, and Subsection (b) of Section 10 thereof; and that the
applicant group is an industrial group truly representative of the
aforesaid Industry; and that said group imposes no inequitable re-
strictions on admilssion to miembership therein.
(d) T~he Supplementary Code is not designedl to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to d~iscr~imirna.te
(f) Those engaged in other steps of the economic process have not
bee~n deprived of the right to be heard prior to appIr~oval of said
For these reasons, therefore, I have approved this Supplementary
HoUG S. JoINasox
AfIAY 5, 1934.
SUPPLEMIE=NTARY CODE OF FAIR COMPETITION FOR
THE-E MlAC1HTINE SCREW NUT MANUFACTURING IN-
A DIVIsION OF THE FABrRICATED METAL PRODUCTS MANUFACTURING AND
31ETAL FINISHING AND MIETAL COATING INDUSTRY
To effectuate the policy of Title I of the National Industrial
Recovery Act, the follow~ing provisions a.re established as a Supple-
mentary Code of Fair Comnpetition for the M~achine ScJrew Nut
Mannufacturing Industry, pursuant, to Article VI of t~he Basic Code
of Fa~tir Comnpetition for the Fabr~icatedl M1etal Products M~anufac-
turing and M~etal Finishing and Mectal Coating Industry, approved
by the President on thle endl day of Nuovemllber, 19335, and the lu-~ovi-
sions of this Supplemlentary~ Code3 shall be the standard of fair
competition for such IndustryS anld shall be binding upon every
ARIrlC'LE II ---DEFI N TIO NS
SECTION 1. The terms Pre~sident," "A~ct a~nd1 "Admlinistrator,"
as used herein shall mean respectively, the Pr~esid-ent of the United
States, the National Industrial Recovery Act, and the Administrator
for Industr~ial Recovery under said Act.
SECTroN 2. The term M~ac~hine Screwr Nuts is defined as all
hlexagon, square or other shapes and styles of nuts stamped, punched
and~/or upset from all metals malde for all sizes of M~achine Screwcs
as defined in thne Supplemnentary Cod~e of Fair Competition of the
Machine ScrewF\ RMaufacturing~ Indlustr~y, except (a) those nuts
which are mannufac~tur~ed and/or sold for use with or on those
products which fall within the following1 definition:
'"The term products means and includes bolt~s, nuts and:'or
rivets fabricated from, ferrous metals and- mniscellaneous headed,
threalded, punched and/or bent products fabr~icated from felrrous
metals by- the p~roluc~ers of bolts, nuts and or rivets writh the use of
eqiuipm"ent that is used in. the prod~uctionl of b~olts, nluts, and/,or r~ivets,
but not, however, including (a) cap sclerew, (b) set. screws, (c)
machine screcws as defined. in the Sjuppllemlentary~ Codte of the Mla-
chinie Screw Mannufacturingl Industr~y, (cd) socket scr~ews, (e) wood
screws, (f) machine scr~ew~ nuts as deflinedl in the S~upplement~ary
Code of~ the MSachine ScrIewl Nut Manui~facturing~ Indlustry, (g) screwr
mna ch~ine products as defined~ in t he S u Ip plemen t ar~y ode of the
Screw M~achine Produc~ts Man[?lufac~turirw Indlustry, (hn) dlrive screws
shor~ter than four and one-half inches il le~ngth andl- smaller thlan
seven-sixteenths of an inch in dliamecter, (i) builders finishing harld-
ware and locks, and (j) pantented Grip Lock Nuts or any of
also exccpt~ing (b) screw machine. products as dlefinedl in the Supple-
ment~aryr Code of the Screw Mfach~ine Products Manufacturing
SECTION 3. The term product means andi incrludes~ Machine
Screw Nuts as that term is defined hnerein.
SlECTION 4. 1116 term "Indusltr "' means and includes the business
of mlanufactul~i~ rin Machline Screw Nuts for sale.
SECTION 5. The term! Member of ~thle I~ndustry as used herein
includes, but without limlitation, any individual, partnership, asrsoc~ia-
tion, corporation or other form of enter~pr~ise engagedl in the Industry
either as an employer or on his or its own behalf.
SECTION 6. T110 term ll emlplo0ee R S lieced herein includes anyone
engaged in the Industry in anyT enpacitiy r~ceiviing comlpensatio~n for
his services, irrespective of the nature or me-thod of payment of such
comnpensation", except a, member of the Indlust ry.
SECTION 7. The term employer "' as used 'her1ein inclulde~s anyone
by whloml any such employee is compensatedi or employed.
SECTION 8. The terml Basic. Code as used herein. is defined to
mleanl the Basic Code of Fair Comlpetition for the Fabricanted Metal
Products M~anulfne~tur~in and Metal Finishing and M"etal Coating
Indulstry as approved by the President. on the 2nd day of Novemlber,
SEC'TIONh 9. The term member of the Code as used herein. shall
mean any7 member of the Industry who shall have asse~nted to the
provisions of this Supplementarly Code by instrument in writing
duly filed with the Secretary.
CSECTION 10. The term Supplementary Code Authorityr as us~ed
herein is defined to mean the agency which is to adminirister this
Sup~plementary Code as he~reinafter provided.
SEC'TION 11. The term. Btureau as used herein is defined to metan
the Mlachinle Screw Nut Bu1~rea, or its successorI.
SECTION 12. The term Executive Committee as used herein is
defined to mean Executive Com~mittee. of the Mnc~hine Screw Nut
SECTIN 13. The term Secretary as used herein is defined to
mean Secretary of the Manchine Screw Nut Bureau, or such other
impartial and confidlent~ial agency as the Supplemnentary Code
Authority maay designate.
Anner IIII--EMPLOYM\ENT PRov'S~istow
This Industry is a division of thie Fabricantedl Metal Products
Manufacturing~ and M~etal Finishinlg alnd 1Metal Coating Industry
and the wage, hour and labor provisions in Article III of its basic
code as approved by the President November 2, 1933, includlingr Sec-
tion 1 of said Article III: by which the provisions of Subsections (1),
(2) nd 3) f Sctin 7(a)of Title I of the Act are made condi-
tions of this Code, are specicllyicroae eenadmd
part hereof as the wage, hour and labor provisions of this Supple-
Annou:E IV--ORGANIZATION AND ADMINISTRATION
SIECTION. 1. During the period not to exceed sixty (60) days follow-
mng the effective date, the `Executive Clommittee shall constitute a
Temporary Supplementary Code Authority, who shall have all the
powers and duties of the Supplementary C'ode Authority herein set
forth, until the Supplemnentary Code Authority is elected. There
shall be constituted within the sixty-day period a Supplemlentary
Code Authority consisting of five (5) members to be elected by the
members o~f the Indlusry, as hereinafter provided, at a meeting
called by the Temnporary Supplementary Code Authorityv, upon ten
'(10) days' notice sent by registered mail t~o all known members of
the Industry whose names can. be ascertained after diligent search,
whlno may vote either in person or by proxy. The members of the
Su~pplemnentary Code Acuthority first elected shall serve until t.he
followmg~ annual m~eetinga of thre 1Bureau and/'or until their succes-
sors are elected, and thereafter, members of th~e Supplementary Code
Authority shall bet elected immediately a after each annual meeting of
the Bureau to serve until their successors are elected, and any mnem-
ber shall be eligible for re-election. Notice of each election shall be
sent in the manner above provided. The -membership of the Supple-
mlerntary Code Authority shall be made up as follows:
(a) 1. Four (4)~ members who shall be mebes of the Indlust~ry
elec~tedl by a mnajrlt~y vote of thne members of the Bureau present in
p'ersoin or represented by proxy, each member to have one vote;
2. At any time upon the request in writing of twent~y-five percent
(25%) of the miembers of the Bureau, the Supplementary Code
Authority shall call a meeting of the members of the Bureau upon
the notice above provided, for the purpose of electing successor~s to
such four mlember~s of the Supplementa~ry C'ode AuthorityS to be
elected in the same manner as prov~ided in Sub-Paragrraph I of this
Paragraph (a) ;
(b) One (1) member who is not a mlembler of the Bureau elected
by majority vote of the mnembers of the Industry not members of
the Bure~au, present in p~erson or represented by proxy~, each member
to have one vote;
(c) AL vacancy in the memnbershiip of the Supplementary C~ode
Autoriy my b filedbymajority vote~ of the remaining members
of the Supplemlentary Cd utoiy
(ld) In addition to the above the Admiistrator may appoint one
()representative without vote and without expense to the Indtust~ry
unless the Supplementary Code Authorit~y agrees to pay such expense
to serve on said Supplemzen~tary Code Alt~horit~y inl the adlministra-
tion of this Supplemlentary Code. Said- r~epr~esentative shall be given
reaso-nable notice of all meetings of the Supplementary C~ode
SEC'TION 2. ~Any Associ a ti on/Insti tute and/or Bu rea u d directly or
indirectly participating in the selection or activities of the Supple-
mentry Cde uthoityshall (1) impose no inequitable restrictions
on mlemibership, and (2) umtt h diisrtrtu oiso
its Articles of Associtilon, By-Laws, Regrtlations and any amiend-
ments when madle ther~eto, together with such other information as
to membership, organization, and activities as the Admninistrator
may deem necessary to effec~tuate the purposes of thne ~Act.
SECTION 3. In Ordler that the Suplem~entary Code Authority shall,
at all times, be truly representative of the I~ndustry -and in other
respects comlply with the pr,1ovisio~ns of the ALct, the Admninist~rator
may prescribe such Hear~ings as he mayT deem proper; and, thereafter,
if he? shall find that the SupplementaryT Cod~e Authority is not truly
represienltative or does not in other r~espects comply w~iith thle provi-
sions of the ~Act, may require removal of anly or all of thne members
thl~ereof and/or m~ay make an appr~oprliate modlificatio~n or mod~rifica-
tions in the method of selection of the Supplementary Code
SECTION 4. The Supplementary Code Authority is hereby con-
stituted the AgLency to administer the provisions of this Supplemn~-
tary Code and to collect and distl~iribte all staztistical reports of the
Induxstryr. W7~ith a view to keeping the President informed as to the
observance or non-observance of this Supplementary Code, said
agency shall collect, through the Secretary, such statistics as called
for by the Pres~ident and/or the Administrator and send them in
such form as the President and/or the A~dministrator may require
to the Fabr'icated~c Mel~tal Pr~oducts Federation, or suc~ce sor organiza-
tion, as thre agency administer~ing said Basic Code. All individual
reports shall be treatedc as confidential by the Secretary anld shall
niot be disclosed to anly mlemlber of the In ustry or any te at
except where necessary in the enfor~cemnent of this Co~odher pand except
to sulch gove~r~nmental agencies as may be directed by the Adminis-
SECTION 5. Said Agency shall also from time to time furnish to
the Basic Code Authority, dlesiglnated in said Basic Code such in-
formlation as may be required to be furnished -under the terms of
said Basic Code.
SECTION 6. The Supplementary Code Authorityv shall hav~e power
from time to timer to require each member of the Industry to furnish
to thre Secretary such information concernringa the production, ship-
ments, sales and orders of such member and the hours of labor, rates
of pay and other conditions of emplloymlent at the plant or plants of
such member and such other information as the said Supplementary
Code Authzority- shall deem necessary or proper in order to effectuate
the purposes of this Supplementaryr Code and the policy of the Act.
~All indcivrid-ual reports shall be treated as confidential by the Secre-
tary and shall not be disclosed to any member of the Industry or any
other party except where ne~cessary in thie enforcement of this Ciode
and except to such~ govl~nernmetal agencies as may be directed by
the A m i nist ra tor.
SEC~roN '7. The Sulpplementary Code Authority mzay require that
any suchl information be furnished periodiically at such time as it
shall specify and mayl require that alny or all. information furnished
be sworn to or otherwise certified or authenticated as it shall pre-
scribe. Failure of aII'ny ember of the Induslltry p~romlptly to furlnisih
to the Secretaryr information required by the said Supplementary
Code Authority and substantially in the form prescribed by it shall
constitute a violation of thet Code. The Supplementary C~dect Au-
thority shall not require any information regarding trade sicre~ts.
SECTION 8. Any or all information furnished to the Secretary by
any cor~porate member of the Industry specifically assenting hereto
pur~sunnt to the provisions of this C~ode shall be subject to verifica-
tioni by an examilnation of the p~ertinent or necessary books. accounts
and records of such member by the Secretary or byv any accountant
or accountantst or other person or persons designated by th~e Supple-
mentary Code Authority (none of whom shall be connectedl with any
members of the Indlustry) and shall be so checked for such purpose,
if the Surpplementary C~ode Authority shall require it. The cost of
each such examination shall be tr~eatedl as an exp~ense of administering
SECTION 9. All members of the Indurstry are subject to the juris-
dict~ion of the Supplementa~ry Code .Authority; shall be entit~ledl to
part~icipate in and share the benefits of the Supplementar Code
Authority; shall be entitled to vote, in the selection of the Supple-
mentary Code Aulthority as provided in Section 1 of this Article;
and shall pay to the! Secretar~y as the agent of the Supplementary
Code Authority their reasonable share of the expenses of the admin-
istration~ of this Sup~plementaryT Code, such reasonable share to be
determined by the Supplementary Code Authority, subject, to review
by the Administrator, onl the ba~sis of volume, of business and 'or such
other factors as mlay be dleemled equitable by the Sup~plementary Code
Atu thori ty.
SECTION 10. NiJothing contained ini thlis Supplemnentary Code shall
be deemned, to constitute~ the mIember~s of the Supplementaryg Code
A-uthority pa~t~ners for any purpose whatsoever. Nor shall any
member of the Supplementary Code Authority be liable in any man-
ner to anyone for any act of any other member, officer, agent or
employee of the Supplemnentary Code Authority. Nor shall any
mnember of the Sup~plemuentary Code Authority, exercising reasonable
diligence in thne conduct of his durties hereunder, be liable to anyone
for any action or omission to act under this Codle, except for his owfn
willful misfeasance or non-feasalnce.
SECTION 11. The Suppylementary Code Authorityr may adopt, sub-
ject. to the approval of the Adm in is-tra tor, and thereaf ter all1 members
of the Industry shall maintain, uniform credit terms. Such credit
terms shall clearly appear on all qluot.ations, invoices and acceptance
SECTION 12. If any member of the Industry as defined herein is
also a member of any orther Industry, the provisions of this Clode
shall apply to and affect only that part of his business which is
includ~edl in the Industry.
SECTION 13. The Supplementary Code Authority shall without
any limitation on the foregoinga have the following further general
powers and duties, subject to such rules anid regulations as the Ad-
ministrator may preseribe:
(a) To insure the exrecution of the provisions of this Supplemen-
tary Code and provide for the compliance of thle IndlustryI with the
provisions of thne Act;
(b) To adopt by-laws and rules And regulations for its procedure
annd for the administration of the Supplementa~ry Code;
(c) 'li obtain from members of the IndustryI such information
,and reports as are required for the administration of the Supple-
mentarv Code. In addition to information required to be submitted
to the Sup~plementary Code Authority, all or any of the persons sub-
ject to this Supplemlentary Code shall furnish, such statistical mn-
formation as the Administrator mnay deem nelessa;ry for the purposes
recited in Section 3 (a) of the Act to such F'ederal and State agienies
as the Administrator may d~esigonate. Provided that nothing in. this
Supplementary Code shall relieve any member of the Indlustry of
any exi~stinga obligations to furnish reports to any government
(d) To use such t~ade: associations and other agenexes as it deemls
proper for the carrying out of any of its activ-ities provided for
herein, provided that: not'hinga herein shall relieve the Supplementar~y
Code Auth~ority of its duties or responsibilities under this Supple-
mentar~y Code and that such trade ass~ciat~ions and agencies shall
at all times be subject. to and comply with the provisions hereof ;
(e) To make recommendations to the ALdministratorr for the co-
ordtination of the administration of this Supplemnentury~y Code with
such other codes, if any, as may be related to the Industry;
(f) To secure from mnemlbr s of the Ilndus-tryJ an equitable and
proport~ionate payment of the reasonable expenses o~f maintainingr
the Supplementary Code Aulthority and its activities;
(g) To cooperante with. the Admilinistraltor in regulating the use
of any N.R.A. insignia solely by those mlembetrs of the IndlustryI
who have assented to, and are co~mplying with, this Suppllementary
(h) T'o recommllend to thre Administra~tor further fair t~radre prac-
tice provisions to govern members of the I~ndustry in their relations
with each other or with other industries and to recommend to the
Adm~inist~rator measures for industrial planning, including stabili-
zation of employment.
SEC"TIO~N 1-1. If the A~dministrator believes that any action of the
Supplemnentary) Code Authrority or any agency thereof is unfair
or unjulst or contrary to thte public intrest, the Administrator may
require that such action. be suspendled to afford an. opportunity for
investigation of the melrits of such. action. Further action, by such
Supp'lemntrayy Code Autfhorit~y or agency r~egarding the matter
complained of mayor be taken if ap-provel b'y t-he Administrator but
shall not be takecn if rlisapplroved by the Aidminist~rator within
thirty (30) dly~s of notice to hliml of inlt~entionl to proceed wiPthn such
ARTICLE V PRICE LISTS
SEcnowN 1. The Supplel~mentary Code Au~thority mnay requlrire that
each members of the Indulstry who manufacturers and~ sells any prod-l
uct of ~the `Industry not ulsed by himself in the manufacture of an-
other product, shall file w~ith the Secretary and ~publish a net price
list anod/or a price list and disco~unt sheet individuallly prepa~rred by
hnim showing his current prices and/or prices and d~iscounltS, and
other co-nd~itions of sanle, inlcludinlg discounts for various classes of
customers or for quantity.
SECTION! 2. Thle Secr~etary shall immediately send copies thereof
to all others members of the Codre. Such price lists, discoulnts and
condliticqns may be revisedr from time to time1 the~reafter', andl notifi-
cationi of such revision shall be filed with the Secretary and shall
be madc~e available to all interested parties. Such revision shall be
deemed filed and effective withiin the meaning of this provision when
telegraphic acknowledgment of receipt of such revision shall have
been received byr the pecrson making such revision, andi copies of
such revision shall be imnmediately sent by the Secretary to all other
members of thte Code, who~ ther~eupon mnyn file, if they so desire, re-
visions of their price lists, dliscounts and conditions which may be-
come elffecti~ve uponl the date when the revised price data first filed
sha~ll go into effect or at a lat~r' sec~ifiedl date.'
SECTION 3. No memb~t er of the Indlustry shall sell directly or in-
directly thrl1ough~ an affiliated company, or otherwise, by any means
whatever any product of the Indlustry at a price lower, or ait, discounts
greater, or on conditions more favorable to the buyer than those
provided in his current price data filed with the Scretary as above
provided; provided, how-ever, that at any time a member of the
Industry mnay meet t~he lawful price, and conditions of any com-
pletitor for products of an equal grade or quality, or for products
competing with products of the Industry. Any such meeting of
a lawful price by a mlember of the Industry must be reported at once
by such member to the Secretary. An affiliated company for the
purpose of this section means a. company the majority of whose
voting stock is owned or controlled by a member of the Industry.
For all purposes of this Article a delivery of any product made pur-
suant to a contract of a sale shall be regarded as a sale t.hereof made
at the time of the making of such contract. Lawful price for the
purposes of this Section is defined to mean any price which a mem-
ber of the Industry may make prursuant to this Code, or any price
which a competitor of anly member of the Industryg may make with-
out violatingf any provision of any Code or Codes to which such
competitor is subject. or without vilolating any Federal Law, State
Ltaw, or the Law of any political subdivision thereof.
SECTION 4. NO provision of this Code relating to prices or terms of
selling, shipping or marketing shall apply to export trade or sales
or shipments for export within thre meaning of the term export
trade as it is used in the Export Trrade Act.
aArric VI--SArESs BEL~w REASONABLE COST
Notwithstanding any other provisions of this Supplementary
Code, when the Supplementary Code Authority determines that an
emergency exists in this Indlustry and2 that the cause thereof is
destructive price-cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplementary
Code, the Supplemlentar'y Code Authority may cause to be deter-
mine th loestreaonale cost of the products of this Induistry,
such determination to be subject to such notice and hearing as the
Admlinistrator 3may require. The Administrator may approve,
disapprove, or modify the determination. Thereafter, during the
period of the emergency, it shall be an unfair trade practice for any
member of the Industr~y to sell or otler t~o sell any products of the
Industry for which the lowest reasonable cost has been determined
'See paragraph 2 of order approving: this Code.
at such prices or upon such terms or conditions of sale that the buyer
will pay less therefore than such lowest reasonable cost of such
When it. appears that conditions have changed, the Supplemnentar-y
Code Aut~horityl, upon its own. initiative or upon the request of any
interested party, shall cause the dletermnajntion to be reviewedt.
ARrICLE VTII UNI~FAIR PL\C'TIC.FS
Fior all purposes of this Supplemefntary Code the following de-
scribed acts shall constitute unfair practices. Such unlfa1i r pract ices
shall be dleemed~ to be unfair methods of c~ompe~tit ion in commner~ce
within the mneaninlg of the Federal Trande Commiission Act as
amended, and any member of thre TIndustry who shall directly or
indirctly -through anry officer, emrployee, agent or r~epres~entativee
use or employ any of such unfair pra8ctic~es shall be guilty of a
violation of this Code.
~A. Thle pr1ovisionls of Article V p>laragraphs" B to G, inclus~ive, of
the. Basic Code are a part of this Supplemlelntary Code to the same
extent as though here repentedl and set forth at leng~th~.
B. The sale or exchanges of anyT product in whole or in pa rt belTow
thle cost of such pr~oduc~t to the particular mlember of the Industry,
such cost to be computed necorlinlg to a cost formula to be prescribed
or approved-, by the! Sup-plementary Code Aiuth~ority and approved
by thle Adm1Ii n istrIa tor ;
Provided, however, that dropped lines, seconds or invento-ries
whichi must be c~onverted: into cash to mect, emeurgency! needs mnay
be disposed of in such mnlrner anld on such. terms anld conditions as
are necessary\ to move such products inlto buyers' handsr~ notwith-
standing aany ot-her provisions of this Code, provided, the Secres-
tary shall have been notifiedl, at lea-t ten (10) days in adv~nc~e, of
sulch~ intend~ed sale or other dispo~-ition and of the description. quan1-
tity and price thereof with~ the reasons therefore and poie h
Secr~etary on the direction of the Suxpplementary Cd uhrt
has not before the termination of such ten day period. in writing,
disappr~oved thne proposed disposal; such disapproval shall be only
on the ,rroulnd of miscrep~res~entat ion of facts;
Proviedl, further, that .selling below cost (as defined in Sub-
Paragraph 1 of this ParagrapnIh B) to meet exiistinga comnpetitio-n on.
products o~f equivalent design, character, quality or spe~cificat~ions
shall not. be deemed a violation of this A~rticle.
C. Using or substituting any material superior in quanlit~y to that
specified by thle purchanser of any~ product, for the purpose, of in-
fluncing purchase or future purchase.
D. Cancelling in whole or in part, or permitting the cancellation
in whole or in part, of any contract of sale of any' product, except
for julstifiab~le cause or a fnair consideration.
E. Inducing or attempting to induce the breachi of any provision
of a contract to wFhich a member of the Code is a party. This
clauset shall not be consltrueder to apply to employment contracts.
F. Aiding~c or abetting~ any person, firm, association of corporation
in any unfair pr~ctic~e.
:G. Offering or givingr to any purchaser of any product any guar-
anty or. protection in any form against decline in the market price
of such product after the date of shipment.
H. Selling or offering to sell special M;achine Screw Nuts be-
low the law ul price of the corresponding or the next larger stand-
ard or listed size M~achine Screwv Nut determined in accordance with
the provisions of Ar~ticle V hereof, plus the cost of the special fea-
ture or features.
I[. Soliciting by any member of the Industry the pooling of orders
from several buyers in a manner to giv~e the buyers advantage of
more fav~orable price or terms than those: to which the buyers would
be entitled individually.
JT. Consigninga merchandise for anyl reason what~soever, except to
a wholly owned or controlled subsidiary, or except under circum-
stances to be defined by t~he Supplementary Code Authority where
peculiar circumlstances in the Industry require the practice.
K~. Making cont~racts of sale that -permit the buyer to cancel and/or
prlovide for a reduced price in event. of a market decline, but which
do not. permit the seller to cancel and .'or do not provide for an
enhanced price, in the event of a market rise.
L. ]Makiing a contract requiring dleliv~ery of specified quantity or
quantities in specified time, if demanded by buyer, but not requiring
thne buyer to accept such quantity or quantities within the specified
M. Making contracts at a specified price for an unspecified quran-
tity for delivery as demandted by the buyer during the period unless
the contract is for a fixedl percentage of the total consumption re-
quiremients of the purchaser of the particular product and unless
it is agreed in such contract thlat, specifications placed during the
last third period thereof shall not exceed the total pieces specified
for shlipm~ent during the first two-thirds thereof; or making any
such unspecified q~uantity contract above described except on a
st~andlard formn or forms approved by the Supplemlentary Code
Authority and the Adminisrtrator; and failing to file with the
Secretary a copyr of each and evlery different form of contract
entered into by a member of the Indulstry within five (5) days after
entering into a contreet. in s~uch form.
N. Miakring contracts for periods in excess of three months (all
contracts to expire not later than the last days of Miarch, June,
Sept~ember or December) or quoting on or making any quarterly
contract. more than thirty (30) days prior to the first day of the
calendar quarter covered by th~e contract, or shipping pursuant to
any contract more than fiften- (15) days after the expiration
thereof, or as soon thereafter as seller can manufacture and ship the
same, or making contracts containing an option of extension or
renewal on, the part of either buyer or seller.
O. Accepting: orders for deliveries extending beyond four (4)
months from date of order.
P. OflFering any article, by price or otherwise, in a manner to
influence the purchase of another a~rticle.
Q. Appointing, continuing to employ or paying a commission,
salary or any other form of compensation to a jobber or dealer
or synldicate buyer of any character as a~n agent, except under cir-
cumstances where such. jobbe~r, dealer or sndieinte buy~er acts -clearly
as an agent and does not sinnataineously perform the function-; of
a jobber, dealer or synd-ienate buyer in a specific tranlsnetion or
transactions, or entering into, any kind of an exctlusive territory ar-
rangaement with a jobber, dealer or syndicate b~uyer.
11.Coninungto emnploy any salesma~nn agent or empllloyee who
shall give any or all of his comm~ission to any purch~aser.
No provision of this Supplermentar~y Code shall be applied so as
to permit mnonop~olies or mlonopolistic pr1actices, or to eliminate, op?-
press or discriminate against. small enterprises.
SECTION 1. Thnis Suplemer~lntaryy Code and all the provisions thereof
are exrpresslly made subject to the 'right of the ]President, in ac~cc-rd~-
ance with provirions of subsection (b)~ of Section 10 of the Act, from
timne to time, to cancel or mlod~ify any border!, appr~oval, license, rule
or regulation issued- unlderl said ACct.
SECTION 2f. This Supp~tlemellnt3ry Code, except as to provisions re-
quired by the Act, may be modjtified or amended on the basis8~ of
exper'ienc-e or changes in circumstances, such modifications or amendi-
ments to be! based upon application by the Su p ple ment a ry Code ~Au-
thoritiy or other repltresenltative gr'oupl within the Indtustry3 to the
Admninistratoro and such Notice and Hearing as he shall specify and
to become effective and be a part of this Supplementary Clode on
ap'provanl by the Aldministrator.
AnrlCLE X--PRICE INC'REAS~ES
Whereas the policy of the Act to increase real purchasingib power
will be made morel'f difficult of co~nsununlation if prices of goods and
services incr~ease as rapidly as waT~ges, it is recognized that price in-
crease~s except such as may be r~equ~ilred to meet individual costs
should be delayed, but whern made, such increases should, so far as
possible, be Jimited to actual addl~itiona~l increases in the seller's costs.
AlRTICLE. X~I---EFFECTIVE DATE
This Supplemnentary Code shall become effective at 12: 01 o'cloqkt
A.Mv. Eastern Standlr~d Timle of the tenth day after it is apprlovedt
bly th~e Presidenlt, and1. shall continue in effect until June 16, 1935, or:
thle ear~liest date prior thereto on whlichI the P'resrident shall, by
p'rc~lamation, or the Congre~ss shall, by joint resolution, declare that
thle emergency recognizedl by Section 1 of the Act, has ended.
Ap~prov~ed Co:de No,. 84---Supplemntr No. 20.
Re~gistry No. 110400.
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