For sale by the Superintendent of Documenia. Washington, D.C. Price 5 cents
Approved Code No. 84-Supplement No. 24
Registry No. 1104--07
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON MAY 10, 1934
WE DO OUR PART
UNIV. OF FL LIBI.
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Supe~:rintendentIl of Documents, Government
Plr~lintin Offi-- -, Washl.~inelltoo, D.C:., and~ by diistrict colill:-cs of thle Bureau of
Fore.CL'1 andc Domestic Cmnmerce.
:DISTRICT OFFICES OF TH-E DEPARTMENT OF COMMERCE
Atla~nta, Ga.: 5041 Post Office Buibiling~.
Bulfll!, N.Y.: Chamber of Comimerc~e Buib~lin*:l.
Charlesiton, S.C.: Chatmber ofr Commrerce Buildlingr.
Chicago, Ill.: Suite 1901:, "Int North Wells Street,
Clevelandl, Ohioj: Chamber of Cojmmerce.
Dallas, Tex;.: Chlum~ber~ of Conunerece Uniibiln. .
Detroit, Michr.: 801 First Natiional Bank Buildling.
H..ust.=u.l Trex.: (~l~~lushe; of Conunerce Building.
Indirnnels.>is, Ind.: Chilrnhler of Commerce BIuildling.
Jacksonville, Fla~.: Chlamb~er of Commerce Building.
K~ansas C'ity, :10..: 1028 Balt~imore Avenue.
Los Angeles, Calif.: 1163 South B~roadwany.
M/emphis, Tenn. : "20 Fie-deral. Duilrding.
Miinneapo~lis, .11innl.: 213 Fedetiral Building.,
New Orleans, ~La.: Rioom. 225-A, Customhouse.
Neir: York.IE N.Y.: 734 C'ustomhiouse.
Nuorfolk, Van.: 406 East Plume Street.
Phli~liml-lr i.I. Pa.: 422 Commercial Tr-ust Buildingo.
Pittsburgh, Pa.: Chamllber of Commerce Euilding.
Portiand. Oreg.: 215 New Post Otljles Building.
St. Louis, Mn~.: 506 Olive Street.
San Francisco, Calif.: 310 Custonsll~hlou e(.
Seattle, WVashl.: 800 Fiederal Office Buildintg.
Approved Code No. St--Supplement No. 24
SUPPLEMENTARY' CODE OF FAIRi COMPETITION
WVOODI SCREWM MAN~1LCUFACTRIN INIJDUSTRY
As Approved on MVay 10, 1934
nPPROV-INa; SentrlpLarw'r ARY C'ODE OF FA~IR COMPIE'ITITION FOR~ lTH
Woonr l S~C'Enew Ma.~II.C.' ncronis TL'`Incyn
A8 DIV'ISIOIN OF TH-E FABRICATE JILTAL.\1 PRODUCCTS MANUFA\CTURING ANJD
MlET~L F~INISHING ANSD ~METAL C'OATING: INDiUSTRYR
An app~lic~ationl having been duly madste purllulnnt to and in full
comnplialc~e w~ithi the p~ovisionls of' Title I: of the Natiolnal Industrial
Relccovery Act, aIpprovedC'C June 16, 19;33, and in neccordanlce with the~
provisions of Section I of Article VI of the Basic Coder for the
Fabr~iented M~etRal Products Ma~nufactui~rin and M~etal Finli hinlg
and Mectal Coating Industryr, apprlovet Novemtrlber 2, 1933;, for ap-
prov-al of a Siupplemen~ntary Coetr of Fair Completition for the Wood
Serew Maunufacturing I~nd-ustry, andl hear~ing~ having been dulyT heldl
thiereon; andi the aInnlexed rep~r~t on said Supp~lemnentar~y Codet, c~on-
taiing findcings with respect thereto, having been mlade alndl dire~cted2
to the President:
NOWT;, THEiR.EFORE, on behalf of the President of the Unitrd
States, I, Hughrl S. Johnsonl, Aldministrator for Indulstral Riec~overy,
puruan t auhortyvested in me by Ex~cutive Orde~rs of the
P-resident, including EeuieOdrN.64- dtdDcm
ber 30, 1933, andl otherwise; dlo hlereby inco!-crporte by recferencet said
annexed report and' do findl thalt said Supp~leme~n ntary3 Codte compi~tlies
in all respects with ithe pertinent, provrisionls anrd will pr~omoc-tl the
policy andl purposes of said Title of said Act.; anid do hereb~y order
thiat said Sulpplementary C'ode of Fair Comnpetition be andt it is
thereby appro'edl; pro~viedl, however, thrat the p~rovisions of Ar1ticle
VT, Section 2L, insofanr as they prescribe a waiting periodf between thle
filinga with the Codes Authlorityr (or such agenlcy as maly be desig-
nated in the Codle) and the effective dlate of prIice list:,a originally
filed anid, or revised price lists or revised' terms and odiinso
sale, be and thecy thereby are stayed pending my further Ord~ce r.
I:UGH S. JOInusOX,
A4dmilnistrat~or for' InlduIstrall Rei cvery.
AI. Ri. GLANCY,
Division. Ad(i~n iisitrator.
58101"----- "-14-I-02- 34 (1)
REPORT~ TO TH-IE PRESIDENT~ '
Ther PasmIIE'; T,~
The Wht'-ite? House.
Smn: This is a re~po-rt on the Suppleme~ntlry Code of Fair Compe-
titcion for the WI'ood Screw~ Manufacturing IndusiitryS a Division of
the Fabz.r~il-nltedr Meital Products Mnllufacturing and Metal Finishing
atndl Mrtal Coa:ting~S Indusltry,' the hearing having been conducted
thereon in Walrshington, D).C., February 2, 19.34, in a1 (orda~lnce with
the provisions of Title I of the Natiolnal Indu~lstr'ial Recovery Act.
The Wtoodl Screwv Manufzlortuil~rin Industrly, berinlg truly I;1represeint-
tiv~e of this division of the Fabricated Metal Products Manu flc~t uri ng
and Mletal Finirhilng and Metacil Coating Industry, has ele~cte~d to
avail itself of the op~tionl of submitting a Supplemelnntary Code of
Fair Compel~tition, as providedr for in Section 1 0f Art~icle VI of the
Basic Code, for ~the Faboricated M~etal Products Manlufacturingg and
MTetal Fiinishing and Mctall Coating Indc'ustry3 approved byr you on
the Second (7ay of NovIember1~C, 19133~.
RASUME~f OFI THIE CODE
Article I ;.tatcs th~e purpose of the Supplemlentar~y Code.
Article II accurately deflines~ specific terms employed in the Sup)-
Article III: Thlis Industry i~s a division of th~e Fabricated Me~tal
Products Ma~nilfectur ~iinr andlt Metal F'inishimrP and Me~ital Coalthwl
Industry and the labor provisions of its Basuic: Code, as approved
November 2, 1123:', are the labor prov,~isions of this Supplemnentaryg
Article IV e- t ab lshes a Suplem'l~nent a ry Code Authority co-nsist ing
of five (5) nultimbersl' to be elcJtedl by the members of the Inldustry
at a, meeting rallled by the Tem~~:po:rary Supplementary Code Au-
thority, and gives ther Administrat the authoriiti:iiy to appoint one
additional member w~ithoullt vote and provides ma~chlinery~ for ob-
mIning sLPtalt istic- and thle amin i iist ratio.n of the Supplemnentary Codel1.
Article V provides for methods of setting~ up and revising price
Ar~rticle VI outlines pr-ohibition of sales blow~,\ reaonable cost.
Article V/II Ieti forthtl the unfair trade pen;~.l.-t~ hsof this Supple-
mentary Codelr which has been especiallly cle:i:ned to offset unfair
competition in this division of theI I[ndustry.
Article VIII provides against monopohies andl icnwnopolistic pracll-
Article IX clontainls th-e mandatory provisions ,(ricnilined in Sec-
tion 10 (b) and also provides for th~e submi~--:~ sino nopsdae
mecnts to thle Supplemlentary Code.
Article X recognlizees that twiic'e inlcreases be limited~ to actudn add~i-
tiornal inlcrerases in the seller's costs.
Arle(~ XI1 states the lffectiv~e da:te and cdurn;tionI of thlis Supplle-
The De~ut .Admlinist ra:tor~ in his final report to me on said Su-;~P
plemlentury (!od hav\.jing fouwlll as hlereCin set forth and on the ba~si
of all thle prceedjci ngs inl this matter:
I f~ind thnt :
(a) Said Suplplementaryl Coder is well designedl to pr~omote the
policies andl pu'poses of Tlitle I of thne Natio~na l industrial RIecovery
Act. includtingr removal of obstrulctions to thle fr~ee flo-w of inltersitate
andt foreign (ommercce which tendr t~to dliminishl the amount thereof nod
will provide for the general welfare by p~romocting~ thle organization
of indu~stryg for th~e pu~rp~oses of cc-ooperative ac~tio1 amng~lj the tradle
groups. by inducincg antl maiintaiining uinited~ action of labor and
management undecr adequntee governmental sanctions and supervision,
by elim i nat ingr un fa i crll cmet it i ve practices, by promort ingr t~he fullest
possible utilization of the present. productive capacity of industriess,
byr avoiding ulndue restriction of production exceptt as may be tem-
por~arily requiredl, by incr~easingr (het consumption of industrial and
ag~ic~ultural~ produ~clts thlrcouh increasing purlchasngin power, by re-
dlucingr andl relieving unremplloymentn by impi~rovmng standnr~ds of
labor, andi by otherwise! rehiabilitating industry.
(b) Said Industry\ normally emplooys not more thann .50.000 em-
playePes; and is not c'lnssified~ by me as a mnfo~r industry-.
('c) The Su~pplemntaryl C~ode aj approved colmplies in all resp~ects
with the per~tinient ,provisions of said' Title of said Act, including
without limnitation Sublsection (a) of Section 3, Subsection (a) of
Section 7, and Snubection (b) of Section 10 thereof; and tha~t the
applicant group is an industrial association truly repr~esientative of
the aforesaid Industry; an~d that sail association impose~s no in-
equitable~ restrictions on admission to membershipD therein.
(d) Thle Supplemientary Cod'e is not designed to and wvill not
permit mionopolies or monopolistic practices.
(e) The S~uppleml~entar y5 Code is not dlesigrned to andc will not
eliminate or opp-ress small enterprises andl will not~ operate to dis-
criminate against them.
(f) Those engaged in other' steps of thle economics process hfavre
not, been dleprived~t of thetr right to be he~ard prior to ap~proval o~f said
For these reasons, thelcrefore, I: have! aIpproved~c this Surpplemnlltaryg
UG'H S. J(,IllNS'ON,
Ad cmin~ist(r atror.
MaY 10, 1934.
SUP1PL~EMENTARYRY CODE OF ]FA~1IR COMPETITION FOR
THIE WOOD SCREW MANUFACTURING INDUSTRY
A DIVISION OF THE FABRICATED MIETA~L PRDUCTS MA\INUFAC:TURINGC AND
METAL FINPUISHING AND METAL COATING INDUSTRY
To effectuate the policy of T'itle I of the National Industrial
Recovery Act, the followingb provisions are established as a Supple-
me~ntariy Code of Fair Compllettiton for the WVSood Screw M~nu~fac-
turing Industry, p~~ur-uat to Article VI of the Basic Code of Fair
Competition for the IiFabricated IMetal Products Manufacturing anld
Meltall Finishing and Me~taIl Coatinlg Industry, approved by the
President on the 2nd <1nly of Noveme r,~cr 1933; the provisions of thnis
Suapplemnentary Code shall be the standards of fair competition for
such~ Indulstryr and shall be bindi~ng upon every member thereof.
A1RTIcuE II -D)En sIno~Ns
SC.~~Crl-no 1. The terms "' President ", "~Act and "'Adlministrator "
as used her~lein, shall mean rrlespetiverly, the President of the United
States,~i the National Indus~ltrial Recovery Act, and the Admninis-
trator for Industrial Recovery under said Act.
SECTION 2. Thne term "C Wood Screw as used herein, is defined to
mean all cerews\ not exrceeding No. 30 screwV gauge in diameter, or
six inches in length, halving a wood -i1crew thread and wiood s;crew
head, and a slot, or its eqcuiva~lentt designed~ for drivingr with a screw~i
driver andl inc~ludingl drive screwc~s within full or semni-slots, but ex-
cluding so-called sheet metal screws~n.
SECT'IO~N 3. The term. product means111 and includes Wood. Screws
as that ter1m is defined herein.
SEEm~ls 4. The term "' Industry meanrs and inlcludles the business
of manufacturing Wood Screws for sale.
SECTIox. 5. The term m~embere of the industry as usedl hlereinl,
inlc~ludcs, but without limitation, any individual, partnership, asso-
ciation, corporations, or other form of enterprise, engarged in the
indcuitry either as an employer or on his or its own behalf.
SECTION 6j. The term1II 'employee as wedc herein includers anyorne
engaged in th~e Industr~y mn any canpneity receiving compensa;~tion~ for
his services, irrespective of the nature or method of patymecnt of such.
SECTION 7. The term "L employer '" as used herein includes anyone
by whomn any such employee is compelnsated or employed.
SECTION 8. The term "L Basic Code as used herein. is d~efined to
mean the Basic Code of Fair Competition. for the Fabr,1icatedl Metal
Products Mannufacturing and Metaln Finishing and Meutal Coating
Industry as approved by the Presidecnt on thle 2ndtl cly of Novemlber,
SECTION 0. cTI1e ;fOTIH llelllief Of the Collfe "' as us~ed hlereinl shall
mieani any mlemlber' Of the TI~Indutry w ho sha11 ll\t havLe asented to thle pro-
visions Of thii ~Supp~lrlemetntr I'~code byl in trllllnet in w~r]iting duly
filedt withi thle Secr1etary
SECTION 10. The term~n1 "Supplementaryl~;~ Code Authority as used
h~erein is decfinedl to mlean the agency wh-ic is to adminilliter this Sup-
p'lemelln~tary C~ode as hereinafter pr~ovide.ft.
SEC.TION 11. Thle term "" Bu~re~au :' as used hecre~in is defined to mean
the U~nited SCtates Wood S~r~ew iService Bu~lreu. or its sulc~cessor..
SECTION 12. "The term "' Executive Conunrittee "" as used hierein is
defined to mean Execu~tive Comml~littee of the United~ States W~ood
Screw S~erv\ice BurePAL.
SECTION 13. Ti10 telri ll 80Cre1et hf R S usedl herein is defined to
mlean Secr~etary of the Untitedl States Woodcc Scrrew Serv\ice B~ureau, or
EIuch other imnpartial and confiderntial agency as the Supp~lemlentar~y
Code Aulthority miay desiglnate.
A2RTICLIE III-EM~PLOCYIMENT PROY\ISloNSS
This Indus~try is a dlivision of thle Fablrientedl Metal Products
Mianufacrturingl and Meital Finrishring and Mletal CoatingF Indurstry
and thre wngez, h-our and~ labor prov\isiions in A~rticle III of its basic
code as a~ppr'oved byT he Prtesideltnt Nov~~lembe 2-, 19:3:, includcinlg Seet~-
tion 1. of said Atlrticle II[I by which the prov,\isionls of Su~bscctio~ns (1),
(2) and (3) olf Cec~tion 7 (a) of Title I of the Act arle made ccondli-
tions of this Code, are spe~cifically inco~rporatedl herein aniir made a
part huereof asr the w\age, houlr and labor provisions of this rSuppl~le-
ARTICLE IV--ORGAN\IZATION' AND ADMIINISrTRATION
SECTION 1. .During the p~er~iod not to exceed sixty (60) days follow-
mg~ the effective date. the Executive Comlmitteee shall constitute a
T"empr aryl Slupplemeftay Codec Aultho-rity, w\\ho .shall `have all the
powrs nddutes f he uplemlentar~y Code Althlorityy hereinl set
forth, until the Supplemnent~r~y Code Authority is el~ctedc. There
shall be constituted~ w~ithinl the six-ty-day p~eriodl a Sulpplemlentary
Code Authority conisisting of five (5) m~emb~er~s to be elected by the
m~ember~s of th~e IndtustryS, at a meetings called by thle Temporary
Sulpplemnent.a~ry Code Auithorityupntnas'otesntb reg
istered mnail to all miemblers of UPth en Industry wosie snamsa b e
atsc~ertainedl after diligent searchl. who mayl~ vote either in person or
by proxy. The members of t~he Sup~plementa7ry Codle Aulthority first
elected shall serve until the following annual meeting= of thle B3ureaui
and until th~eir. successor~s are elected, andt thereafter, members of
the Sup~plemlentary C'ode Aulthority shaill be elec~ted immeliattely
after each annual meeting of the Bui~reau to served until their succes-
sors are elected. Notice of each election shall be sent ini thre manner
above providled. The membership, of the Sjupplementaryr~ Codie
Authority sh~all be miade up, as follow-s:
(a) Flrour (4) membel~crs who shall be m~emb~ers of thle Indlust~r
e~lcctced by a ~majority vote of the members of the Bureau present in
p'erson or represented boy proxy, ealch member to have one vote;
(b) One (1) mrember who is not a member of the Bur1eaul elected
by majority vote of the mremnbers of the Industry, present in. person
or represented bsy proxry, each. Inember,'l to have one vote;
(c) In addition to th~e above the Administrator may appoint one
(1) representative without vote and without expense to the Industry
unless thle Supplemnentary Code LAuthority agrees to pay such ex-
pense.r-., to serve on said Supplemlentary Code Authority in the ad-
rnlini~ta nation of this ,Suppi~le mentart 1 y Code. Said representative shall
be given reasonablle]Il notice of all m~reetings of the Supplemenmtary Code
A vacancy in the membership of Ithe Suapplementary Code Author-
itIy ''!'y be filled by majority vote of the remaining membersli of the
Supplementary Codle Authority, but it shall be in P-uchl manner as to
maintain its representative, character as pro-videdl in this Section.
SECT`ION 2. Any Aissocia~tion/Institute and/or Bureau~n directly or
indirectly participa7ting in the .r-de~lctio or activities of the Supple-
mntcnarly Code Ai'uthorit~y shall (1) impose no inequitable res'ctric'tionsll
on memberships~, and (2) submit to the ~Administrator true copries o~f
its A~rticles of A~ssociaktion, Bly-laws, Regula~tionsl and any amend-
muents when rmadle thereto, together with such other information as to
membership? organIIiz t ionI:, and activities as the AdmItIinlis L:tentor may
deet I ncesaryn~ to efflectuate the purposes of the Act.
SECTION 3. In order that the Supplementary Code Authority shall,
at all times, be truly representative of the I[ndustry and in other
respects comply with thie provisions of the Arct, the A dm11i n i' t rator~
mlay p-res, rib!-e such H3earing2s as he mnay d~eem proper; and, theire-
after, if he shall find that the Suppkcli:nentarIy Code Authority is
not truly rep~:runlt ative or does not in other re pec~(.ts comply with
the provisions of the Act, may require removal of any or all of the
members thereof and/or may make an. appropriate modification or
modifications in the meth-od of selection of the Supp~lementary Code
SEen'Tow 4. T~he Sjuppkl~ll-met;. rIy Code Authority is hereby con-
stituted th-e agcyEllj to administer the provisions of thlis Suapple-
mleninlry Code and to collect and dli-ltribute all statistical reports of
the Industry. W;5ith a viewr to keeping the Presidlent informed as
to the observance or non-observance of this Su:lpp-lem-~entar y Code,
said agency shall collect, through the Secretary, such statistics as
called for by the Pres~idetll and/or th~e A~dministrator and send theml
in such form as the Pr-esident and/or the Administrator may require
to thte Fiabricated M~etal Products Fieder~ation, or su~c:essor o~rganizn-
tion, as the agency administering said Basic Codec. All individual
repo-rta shall be treated as confidential1 by the Secretary and shall not
be dli closed to any member of the Ind~7ust ry or any other party except
where necessary in the enforcement of this Code and except to such
governme"""nta agencies as may be directed by the Admimistrator.
SECTION 5j. Said Agency shall also from time to time furnish to
the Bas~ic Code Ahuthority, dlesignatedci in said Basic Code, such in-
formation as may~ be required~ to be furnished under the terms of
snia- Basic Code.
SECTION 6. The Supp>~lementary Code Auithor~ity shall have power
fromt time to time, to require ealch mnember of the Indr~ustr~y to furr-
nish to the Secretary such .informatlion concerning the: production,
shipments, sales and orders of such memlber and th hiour~s of labor,
rate of pay and oter condlitionsu of employmeitnt, a the plant or
plants of such mlcnembe and such other informaltionl as the said(_ Sulp-
p~lementury Code Authocrity shatll deem nlece~ssary or proper'c' in order
to effectuate th~e purplosesc of this SuC1pplementary Code and the policy
of the A4ct. All indIividudl re~or~ts shall be treatedt- ail confidential
by the Secretary andc shall not be disc~losedl to anly member of thte
industry or nany o-ther palltry except where ne~cssnrar in thert enfo-rce-
ment of this Code and except, to such governmcntal agenc~ies as may
be directed by the A~dministra7tor.
SEcT-rox 7. The Suppleme ntaryy Code Aruthority mayl~ require that
any such information be frn~liqhed~ periodically at such timels as it
shall sp~ecify atnd may r~equiret that any or all inforlmationl furnishedl~
be swrornI to or otherwise cer~tified~ or authcnticatedl as it shall pre-
scr~ibe. Failure of any Inmtembe of the IndlutstryS p~lromptly to fr
nishl to the! Secretary information requair~ed by the said uplrnn
tary Code A~th~orit~y and substantiallly in thle form pre'scribed~ by it
shall constitute a v\iolatio~n of the Codelt. The Supplemen taryJ Code
Aquthlority shall nIot require any informa~tio nl regard''.ingi .tradle secrets.
SECTION 8. Any or all inlformatio-n furlnish~ed' to the Se~creta7ry by
rany c'orporal'te mnemlber of the Ind~ustr~y spetcifically assenting hler~eto
pursuannt to, thne pr~ovisions of thle Code shall be subject to verlifica-
tion by anr examination of the p~ertinent. b~cook, accounts and records
of suIch mltlllembe by' the Secretary or by Iny accojuntant or account~-
nuts or other person or persons desigrnaited by the Supplemnentary
Code A~uthority (nonell of whom11 shall be connected wvith any member
of the Indurstry)v and shall be so ch~eckledl for such I~1pu-rpse if the
S;up~plementar y Cod~e ALuthority shall require it. T~he cos~t of each
sulch examnination shall be treated as an expense of adlministernrin the
SECTION 9. ~All mnember~s of the Industry ared subject to the jur~is-
diction of the Suple~~l mentary Code Aulthlority; Shaill be entitled to
pa"rticipate inl and share the beniefits of the Sup~plementary Cod~e
Authourity: shall be entitledl to vote in the selection of thle Supple-
mentary Code A~uthority as provided in .Ce~ct~ion 1. of this ALrtile;
andl shall payr to the Secretaryr as the agent of thie Sup~ple~mentary
Code Authlority their reasonable share of thle expenses of the Atdmnin-
ist~rtiond of this Suplementary Code, such reasonable share to be
detemine bythe uppemenaryCode Authiority, subject to re-
viewt by thle Administrator, on thebssofolmofusnsad r
such other factors as miay be deem~ed equitable by the Supp~llementar
SECTION 10. Nothing~ contained in this Supplemecntary Cole shall
be deemecd to constitute the memnbers of th~e SupplementryCode
Authority partners for any purpose whatsoever. Nor hl any
member of the Supplementaryv Code Authority be liable inl any
manner to anyone for any act of any. other mecmber, officer, agent or
employee of the Supplemnentary Code Authiority. Nor shall any
member of the Supplementary Cod~e Aulthority, exercising reason-
able diligence in the conduct of his duties hereunder, be liable to
anyone for any action or omnissio~n to act under this Code, except for
his own willful misfeasanlce or non-feasance.
SECTION 11. 'Ihe Sn ple ~ncrunn "or Codie AIuthority may adopt, sub-
ject to the approval of the Adm!inis-t rato.r, and thereafter all mem-
bers of thle fInd-ustry sha~l:l mttaintain, uniform credit terms. Such
credit ttwinsr shall clearly appear on, all quotations, contracts,
invoices and accept~ances o order~s.
SECTIONv 12. If any mlember of the Industry as definledi herein is
also a member of any other Industry, the provisions of this Code
shall apply to and affectL only that part of hris business which is
included in the Industryr.
SECTION 13. The Supplementary Code AuthnorityT shall without
any limitation. on the foiregroingi have the following further general
powers andi duties subject to such rules and regulations as the Ad-
mimistrato r may prescribe:
(a) T'o insure the execution of the provisions of this Supple-
mentar~y Code and provide for the compliance of the Industry withn
the provisions of the Act;
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration of the Supplemernt~ary Coode;
(c) To obtain from members of the Indu~stry such information
and reports as ar~e requ~ired~l for the administration of the Supple-
mentary Code. In addition to information required to be submitted
to the Sup~plem~entary Clode Authority, all or any of the persons sub-
ject to this Supplementtar~y Code shall furnlish such statistical infor-
mation as the AdministraLtor may deem necessary for thle p~rpyose~s
recited in Fot r~icn 3 (a) of the Act to such Federal and State agencies
as the Administrator mnay designate. Provided that nothing in thnis
Supplemnentary Codte shall relie-ve any member of the Industry of
any exzistingr obligations to furnish reports to any government agency.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its Ic~tivities provided for
herein, provided that nothing herein shall relieve the Supplemnentary
Cod~e Authority of its duties or responsibilities under this Suple-,ll
mentary Codie and that such trade associations and agencies shall at,
all times be subject to and complly with. the provisions hilie ref ;
(e) To ma~k(e recommendations to the Administrator for the coordi-
nation of the administration of this Supplementary Code with such
other cod,~es, if any, as m~ay be related to thze Industry;
(f) To secure from members of the Industry an equitable and
proportio~nate payment of the reasonable expcnse~s of maintaining
the Supplemnentary Code Authority and its activities;
(g) To cooperate with the Admninist~rator in regulating th~e use
of anyT N.R.A. insignia solely by those members of the Indus~try who
have assented. to, andl are complying with, this Supplemyentayry Code;
(h) To recommendntr~ to the Admninistrator further fair trade p~rac-
tice provisions to go'e~rn members of the Industry in their relations
with. each other or with other indus~ltr~ie and to recommend to the
Administrator measures1.c for indus~tr~ial planning, including stab-ilizn-
tion of employment.
SECToION 14. If the A~dminisit~lt~rar believes that any not.ionl of the
S~upplementary~ Code Authority or any agency therecof is unfair or
unjust or contrary to the public interest, the Adm~inistl'trator' may
require that such action be susple~c'l d toI :Ifrdrl an oplportunity for
investigation of the merits of suchl action. PiFurther aIction b~y suIch
Supplementar~y C'ode Authortit y or agency~, Inr~grfiing theC matter com-
plained of may be tak~en if app~rovdct by~ the .-~~lhninistratorl bunt shall
not be taken1 if dliisapp~l.rove by thle Admin~istentorot within thirty day1s
of notice to him of intenztionr to prceld withl stu-hl action.
AnTIC'LE V-PHIc' E LTSr
SECTION 11. The Suppleme~ln n tary? Codle Aulthor~~ity may require th~at
enchl mnember~ of th~e Industryi who manulr~ f:rt ures a7ndl sells any
p~rodluct, of the IntlustrIy not usedl~t by hlinwc~lf in the m\anulfact ure o
another product, shall pub~tlirh andr file with the Secre~tary a nert price
list and/or a price list and~ discount sheet ind~i\idually prepared by
him sh~ow\ing his current prices and~/or p~rices and discou~nts, andt
other condiltions of sale, inl:llluing dicounc,~ts for various~ classesa of
cusomrs r orquatiy.Saidl price list and/or any rev\isedr pr1ice
listshal b mae aailbleto all inter~ested~ parties.
SECTION 2. The BPrrel~tary Shall .immeiaclitely se~lndl copies there~of
to all other mnembers- of t~he Code. Such1 pr1ice lists, d~iscou~nts, aInd
conditions mray be revised' fromr timie to time ther!a~ft~r, andlr notific.:-
tion of such. revision shall be publllishled~ andlr~C~ f Tifle wihhe Serretary.
Such revis;ion- shall be dleemred~ filed w-ithlin the mea~~ning~r of this pro-!
v~ision whenl telegraphnic acnow~1,\ ledgmelnt of receipt of sulch re I~Iilnn
shanll hav\e been. receivedt by the pecc~lrlon mking such revisionl. and
copies of sulCh rev'ision. sharll bl immedrtiately sent. by the Secretarfy
to all other memblllers of the Codel, wcho thereuplion may file, if fthey so
desire, revisions of their prliCeL lists~, disCountsf~ and conlditio.ns wh~lich'l
may becomel effective. upion the da~te when the revisedl prlic~e danta first
filed shall go into effect, or at a later Ipecified~ date.f
SEc.TION 3. NO me1lllber'l of the Indullstry shall~ sell dtirc.tly or in.11i-
r~ectly throullghl an alffilialtted rcomrpnran, or olthe~Irwise,, b any means
whatver any product of thle T~Industry at ai pli'e lowe,~\~ or at clis-
counits greater, or on conditio~ns more? favorahkl~l to the buyier thaln
those provided-c in hisi culrretnt, price datal~ fildc w-ith~ the %tecre~ta~ry als
ab~over prov,\iddc~; pro'viled, howevr\i, th-at at any timeic a member(! of
the Industry3 may metc~ the lawfu~l pr~icie, annd,'or condiititions of any
comp~etitor for produc1-tsi of an equal gl~rade or~ qua;lityr. Any suchl
meetings~ of a lawfu~l prIIice by- a member'-- of the- Inusrynust
reportedly at oncer by such. members~' to the S~cre~tary.i ALn ''- utilinlted
company. foi lr th pulll5r's Of thlis .ecutio~n means a~ co~panny the ma1:-
jority' of who~(~I \ voting stickl is ow~nedl or" C'ontrolledl by a membrllll oif
thle Ind~ustr\. Law~ful p,~rie for the pu~rpose'"s o~f this rSection is dec-
fined to mean aniy prices which a nlrlnaber of the Imllustry may\ ma~~ke
pursuiant to, this Codel~. oi~r an price whichl a comllpetitor of any
member of thec Illulu-;tl' y may make w\ithou~t violatingi any provis\iion
of any Cod-e ori Codes~ to whlich suich
SEc.TIlrN i. So prodvsioii of thils Colle Ielalingr t0 prices or sterns
of :,ellinrr. ship~pi ng or~ Inuirkting shlln app~,ly to, export tradt e or sales
iSe* Iragraph, of order ap~pro vin g tis Code.
or shipments for export trade within the meaning of the wo7rd
" export trade ats it is used in the Exprr3t Trade Act.
ARTICLE VI-SALES BELOW REIASONTABIA COISTI
Notwithlstanding ainy other provisions of this Supplemerntu~y Code,
when the Supplemlentary Code Authority dettermines that an emer-
grency exists in this Industry, and that the cause thereof is destruc-
ti~ve price-cutting such as to render ineffective or seriously cendanger~
t~he maintenance of the provisions of this Supplementary Code, the
Supplementatry Code Authority may e~nu e to be determined the lowR-
est reasonable cost of the products of this Industry, such de~terml1ina-
tion to be subject to such notice and hearing as the Admllinis~trantor
may require. The Administrator mnay 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 Ilndustry to sell or offer to sell any products of the Industry for
which the lowest reasonable cost has been determined 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 products.
WNhen it appears that conditions have changed-, the Supplemenltary
Code Aluthorit~y, upon its own initiative or upon the request of anly
interested party, shall cause the determination to be reviewed.
ARTIcLE VTII--UNFAIR PRACTICEs
SECTION 1. For' all purpocses of thlis Supplementary Code the fol-
I}ow\ingr described acts shall constitute unfair practices. Such unfair
pratllices shall be deemed to be unfair methods of competition in
commerce within the meaning of the Fedeclr~al Trade Commission
Act as amended, and any member of the Industry who shall dil~rectly
or indirc~ctly through any officer, employee, agent or representative
use or employ any of such unfair practices shall be guilty of a
violation of this Code:
A. The provisions of Article V sUpllenaragah B d to G h icsive o
the Basic Code are a part of this SplmnayCd otesm
extent as though here replented- and set forth at length.
B. TPhe sale or exrchangfe of any product in whole or in part below
the cost of such product to the particular member of the Industry,
such cost to be computed ncording to a cost formula to be prscrcib ed
or a2pproved by the Supplementary Cod~e Authority and app'roved'
by the Administrator;
Provided, however, that dropped lines, seconds or ir\cinvetoie~s
which must be conver~tcd into cash. to meet emergency needsic may be
disposed~ of in uchll manner anld on such terms and condlit ionls as are
necessary to move such products into buyers' hannds notwithlstandling
any other provisions of this Code, provided, the Secretary shall have
beenl notified, at least ten days in. advance, of such. intendedcr sale or
other dlipo-ition and of the~ description, quantityT and price thereof
wnith~ the reason therefore.
Provided, further, that selling below cost (as defined in paragraph
1 of this subsection B) to meet existing compe-,titio-n on products of
equivalent desigSn, char~neter, quality or specifications shall not be
deemed a violation of this A5rtcle.
C. Using or sulbstitulting any material superIior, l in quanlity~ to that
specifiedl by the pu~rchlaser of any product, for~ thle purpose of in-
fluencingi purchase or future purchase.r
D. Cancelling in wholcle or in part, or t rm~itting thie cncellatio n
in whlole or in pa~rt, of anyi conitendr of .-ale1 of anryV prodnetl(' xcep'(lt
for justifiable caused or a fair Can.--ileraftion.
E. Indu~cing o~r attemtllitingL to induce the breach('l of anyl~ prov,\ision
of a contract to wh\j]ichl a m~embller of thle rcoale ir; a par1ty. This
clause shl~ul not be rconstrued~c to, avply to co~ntrnet~ of emp.l];toymnc~lt .
tion. in. any uInfair practc~icc.
G. Otfforing or1 gi\ing to any purllchaser;c of any prodluct any~
guaranty or proctectionr in aIny furlinl agafillt dcline~ in the mal;rket,
pr'ic~e of such1 produllc~t after1 the date of Ihipment~lt.
H.-T Se~lling or offeringll to sell special Wood~~t Aren(~-- be.llmi\ the~ lawcful
pr.ice of thle curre.l''.,lxning~, or the nestr I;Irger.L or' ~longer 'ftal~nlard or
listed. size Woor~cd rS'~crw cetrf'llinimal in ncordall~nlce w8ith the prod,\'-
siions of Artic~le V heLreo0f, plus the cost of Ithe special fea;turl; or
I. Soic~itingl by any memberc~r of the Industry3 t~he l.oline-. of (Irder~ls
mlor'e f;avolrabl-e p~ric-e or~t termsi~ than those to whlirlh the" buyersc~: wTould
be e~ntitledl individua~lly.
J. M~nkiing c~ontllrati of sa-le~ thant permit ther buyecr to rcanro-1 alndl/or
prov-ide fo~r a rellucedl p"rie in event of a maret rel('ine.( butt wh;IliCh
do no~t p''mit the selleri to cancel and/or tot not p,rovilre for a' n en-
huncl:erl prwe, in thle evec.nt of a mlarket~ rise.
]K. Making conltrnelts requriring deltlivery of pspe<-rlie clinintity or
quaintities in specifiedl time.l if demal~nded~ hv! buyer~. hu~t not requ~ir~ing
thle buye!-rr to necerpt IIuch quantllity. orI qualllfititieS writhin the spec~(ified
L. Mkin cotracs a a -pa ifidrice for anl unslpecifiedl quantlity
for declivcry as detlelnlllIl by 11 the buyer during the petriodt, u~nless the
C.ontenet~ iv for a fixed( pare''~llntag of thet total Ccnsumptl~ionl requllire-
nwncrts of thec purii.T!Ichmr of thre p~artiedur11 p~''rodut. andi unk~~.~ it is
agreed~~ in suc11h conl~trnet that spc'-ifiien;tio~s pincedl
during~ thel first two-~thirdsi thereof; or making any .such1 ulnspeccified
quantity ccntra~ct abovle Jewl-;~ribed~ exIcp't- on a 'itanlll~lda form~ or formlls
approved'\ c~ by~ theI SupplanenIl.;tur1y Cathi. Aulfthorrli y an d the Adm i nistrIa-
tor; orI failiig ito file withi thet S~crleta'yY a copy. of echnoti eve~l cry
(lfdlcl#Plf fOCIll (, r.'(,lfR<~.'f P'lli't'l IinO hv a lilellliber of the Indrustr~y
St. ?T1lking~ Icontracts~ for pei~r-irl~s in. eCe~?ss oif thiree~i mulnfthc _(all
contra~r t to, expire noit Initler thani~ tliw lat days of Much('l, June, Srip-
morethanthity (MD ays n-ir tothefirs da of the cale~ndar
tract morlT than1 fi'fteen1 (15j) (1ay' after ther expiration thereo~f, or as
-1oon1 therea.;ftrl as seller onl mainuifacturen and~ Ship thle sameC or' ma1k-
ing: conltrarts; contaninzii an opItioni oif exte~nsioin or renewal oni tlhe
par"t of eithier buyrci or seller.
N-. Oilecring any1? article byv price~ or otheirwi'\' e in a mainner to ini-
fluenice ther purchas~ie of anolther arti~cl.
O. Appointing, continuing to empfloy or paying a, commission,
satlary or an1y mother forml of compensation to a jobber or dealer, or
syndicate buyers of any character as an agen-~t, except under circum-
s-tanlces. where such jobber, dealer or syndicate buyer acts clearly as an
agent and does not simultaneously perform the functions of a job-
ber, dealer or syndicate buyer in a specific transaction or tran sn _t i ons ;
p'rovidedt, however, that any jobber or dealer w-ho was an agent of
and performinga such' dualil functions for a, particular member of the
Indunstryv on Jul~y 1, 19:32 mnay be continued by such mlt~l~embe as such.
agent if such memllber files wLith thle Secretary a list of all such agents
within five days after the effective date of this Code.
P. Continuing to employ any :salr.c.mln n, agent or employee who
shall give any or all of his commission to any purchaser.
No provision of this Supplemnentary Code shall be applied so as to
permit mnonopoclies o-r monopolistic practices, or to eliminate, oppress
or discrumnmate against small enterprises.
ARTICLE T~IX -MODIFICATIONS
SECTION 1. This Supplcementur~ Iy Code and all the provisions th~ere-
of are, expressly made subject to the right of the President, in
nlc-;llneeordc with provisions of Iubsel.tion. (b) of Section 10 of the
Act, from timel to t~ime to cancel or modify any ore,~l~ approval,
license, rule or retgullation ilic- nod ndrlt said Act.
SECTION 2. 1hiS Sup~plemlentary Code~, except as to provisions re-
qu~iredc by the Act, may be modified or amnen~ded on the basis of
experience or changes in circumstances, such modifications or amnend-
ments to be based upon application by the Supplementary Code
Authority or other recpre;ntaltive group within the Indusltry3 to
the Administrator and such Notice and H-earingr as he shall specify
and to become efeective and be a part of this Supp~leellclntry Code
onl approval by thle Admlinistrator.
ARTICLE XY--PRICE INCHIEASES~
Whereas the policy of the Act to increase real purchasing power
will be mlarde more tliffknlt of consummation if prices of goods and
services increase as rapidly as warrges, it is recognized that price
ine-Ir-n-es except as may be required to meet individual costs should
be! delayed, but w~hen. madne, such increases should, so far as possible,
be limlited~ to actual additional increases in the seller's costs.
ARTICLE XI-EFECTIVE DATE
This Supplenienturyll~ Code shall become effective at 12:01. o'clockr
~A.M. Eastern Stallnldar Time of the tenth day after it is approvred
bly the President, and shall continue in effect until June 16, 1935, or
the earliest dalte prior thiereto on which, the President shall, by proc-
lamation, or the Co~ngrecss shall, by joint resolution, declare that the
emergency r~e~cognrizedl by Sectior n 1 of the Act, has ended.
Approved Code~l No. 84--Supplement No. 24.
Registry No. 1104-07.
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