NATIONAL RECOVERY ADMINISTRATION
C ODE O F FAI R C O MPET I~TION
SCREWF~ MACHINE PRODUCTS
WE DO OUR PART
UNIV. OF FL LIA.
GOVERNMENT PRINTING OFFICE
lier sal by the Superintendent of Doemnents, Washington, D.C. - Palce 5 cents
Approved Code No. 84--Suppletnent No. 18
Registry No. I104--11
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Mletal Coating Industry)
AS APPROVED ON APRIL 28, 19341
This publication is for sale by the Superintendent of Documents, Government
%fting; Office, WSashington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT O~F COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Al4a.: 257 Federal Building.
Boston, MNass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North. Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.'
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memp~his, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
Newv Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Vfa.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Offce Building.
St. Louis, Mo.: 506 Olive Street.
San Firancisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 ]Federal Office Building.
Approved Code ]No. 84--Supplement No. 18
SUPPLEMENTARY CODE OF FAIR COMPETITION
SCREW MACHINE PRODUCTS IMANUFAC'TURING
As AQpproved on April 28, 1934
APPROVING SUPPLEMfENTARYr CODE OF` FAIR COMlPETITION FOR THEIP
SCREW nIACHINE PRODUCTS nlANUFACTURING INDUSTRY
A DIVISION OF THE FABRICATED METAL PRODUCTS MIANU FACTURING AIND
METAL FINISHING AND METAL COATING INDUSTRY
An a~pplica tion having been duly m~ade pursuant to and in full. com-
pliance wvith the provisions of Title I of the National Indust~r~il Recov-
ery Act, approved June 16, 19333, anrd in accordance within thre provi-
sions of Section I; of Article VI of the Basic Code for the Fabricated
Metal Products Ma~nufactur~ing and Metal F~inishing and Metal Coat-
ing Industry, approved Novemlber 2, 1933, for approval of a Supple-
mentary Code of Fair Competition for the Screwv Machine ~Products
Mianufacturinga Industry,- andI hearing having been duly held thereon;
an the annexed report on said Supplementary Code, containing find-
ings with respect thereto, having been made and. directed to thze
NOW, THEREF`ORE, on behalf of thie President of the U~nited
States, I), H~ugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority v~ested in me by Executive Orders of the Prest-
dent, including Executive Order Niro. 6543-~A, dated December 30
1933, and otherwise!; do hereby incorporate by reference said annexed
report and do ~find that said Supplementary Code complies in all
respects writh the pertinent provisions and will promote th policy and
purposes of said Title of said Act; and do hereby order that said
Supplementaryg Code of Fair Comp~etition be and it is hereby ap-
proved; subject, how-ever, to the following conditions:
1. That the application of the provisions of Schedule A attached
thereto and made a part thereof be and it hereby is stayed for a period
of sixty (60) days from the date hereof, in order to afford an oppor-
tunityT to consider any objections thereto by interested parties and
at the expiration of said period such provisions shall become effective
unless I, by my further order, otherwise direct; and
2. That Paragraphs F and G of Section 1, Article V be deleted.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. R. GLANCY,
April 98, 1~984.
REPORT TO0 TH~E: PRESIDENT
C The Wite Hlouse.
SmR: ~This is a report on the Supplementary Code of Fair Competi-
tin for the Screw Mh~achine Produ~cts Mranufacturing Industry, a
division of the Fabricated Mietal Products MianufacturmPg and Mietal
Fi;nishingr andl Metal Coatng I;cndustry, the hearing having been con-
ducted tbhereon in Wiashington, D.O., February 9, 1934, in accord ance
wpit the proviisions of Title I of the Nclational I[ndustrial Re~covery Act.
The Screw M~achine Products Mal~nufacturing Industry, being truly
representative of this division of the F'abricated Meotal Products
Manufacturing andr Meftanl Fi'nishing alnd Me~tall Colting Industr-y,
hass elec ted to avail itself of the option of subm~itting a Supplemenltary
Code of Fair Competition, as provided, for in Section 1 of Article VII
of the Basic Code, for the Fabricated Metal Products M'anufacturing
and Mletal Finishing and Metal Coating Industry approved by you
on the second day of No~vemlber, 1933.
afaunrl OF THE CODE:
Article I st ates the pu rpose of the Supplement aryr Code.
Article II accurately defines specific terms emlployed in the Supple-
Article II[I: This Indust~ry is a division of the Fabricated M~etal
Prouct Maufaturngand Metal Finhishing and Metal Coating
Industry and the labor provisions of its B3asic Code, as approved
]Novemnber 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a Supplemrentary Code AuthorityF consisting
of seven (7) members to be elected b~y the members of the Industry
at a meeting called by~ the Temporary Siupplementary Code Authority,
anrd gives the Adrmimstrator the authority to appoint one additional
member without vote and provides machinrery for obtaining statistical
and the administration of the Supplementary Code.
Article VT sets forth thze unfair trade practices of this Supplementary
Code hic ]has been especially designed to offset, unfair competition
in hi division of the Industry.
Article V;T provides against monopolies and mionopolistic practices.
Article VII contains the mandatory provisions contained mn Section
`10 (b) and also provides for the subnuission of proposed amecndmlents
to the Supplemecntaryr Code.
Article VIII recognizes that price incr~eases be limlited to actual
additional increases in the seller's costs.
Article IX states the effective date and duration of this Supple-
Schedule A sets forth theo formua for estimating cost.
Schedule B sets forth standard terms and conditions of sale.
The Deputy Admi~nistrator in his final report to m~e on said Supple-
mentary Code having found, as herein sert forth and on the basis of all
the proceedings in this matter:
I find that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes of Ttle I of the National Industrial Recovery
Act, includihg removal of obstructions to the free flow of interstate,
and foreign conmmerce which tend to dimiis the amount thereof
and will provide for the general welfare by promoting the organization
of industry for the purposes of cooperative action amo1111111111ng the trade
groups, by inducing and maintainmg united action of labor and
management under adequate governmental sanctions and supervision,
by eliminating unfair comnpetitive practices, by promoting the fullest
possible utilization of the present productive capacityT of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing thle consumption of industrial and
agricultural products through increasing purchasing power, byP
reducing and relieving unemployment, by improving standards o
labor, and by otherwise rehaabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees, and is not classified by me as a major industry.
(c) The Supplementary Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including with-
out limitation Subsection. (a) of Section. 3, Subsection (a) of Section 7,
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 restrictions on admission
to mnem-bership therein.
(d) The Supplemaentary Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemnentary C~ode is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discriminate
(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 Sup-
For these reasons, therefore, I have approved this Supplementary
IIEUGH S. JOHNSON,
APRIL 28, 1934.
SUPPLEMlENTARY CODE OF FAIR COMIPET'ITCION F"OR
THE SCREW MlACHEIN~E PRODUCTS MANUTTFACTURING)
A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING
AND METAL FINISHING AND METAL COATING INDUSTRY
ARTICLE: I-PU RPOS ES
To effctuate the polic of Title I of the N~ational Industrial R~e-
covery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Screw Miachine ]Products
Manufacturing Industry. Pursuant to Alrticle VI of the Basic Code
of FEair Competition for the F'abricat~ed Mfetal ]Products Alanufac-
tuin and M~et~al Finishing and M~etal Coating Industry approved
by the Prsident on the 2nd day of Novemlber, 1933, the provisions
of this SupplementaryT Code shall be the standard of fai competition
for such I[ndustry and shall be binding upon every member thereof.
SECTIO N 1. Thre terms "'President ", "'Act and "A;dminist~rator "
as used herein, shall mean respectively, the President of the United
States, thie NaTtional Industrial RecoveryV Act, and the A~dminist~rator
for Industrial Recov~ery under said Act.
SECTION 2. The ter "Industry"' and/or "Screw Machine Prod-
ucts Industry"" means and includes the business of manufacturing
Scre Machie Products for sale.
SECTION 3. T~he term ""Screw Ma~chine P~roducts" means and in-
cludes any products first ma~de from rod or tubing or other mrtaterial
on either automatic or hand screw machines which .are made to
customers' specifications or stocked by members of the Industry~ for
future sale to customers except such products as are assembled by
the original manufacturer with. products other than Screw Mlachine
Products and which thereby become ant identifiable unit subject to
anohe particular code or codes approved or to be approved by the
President and except such products as are m~ade in many different
sizes of the sam or similar form for stock byg all manufacturers and
becm identified thereby as a standard article and as a separate
industry subject to a particular code or codes approved or to be
approved by the President, and except semi-finished Inuts fabricated
from ferrous or nonferrous mletaols.
SECTION 4. The term '"member of the industry as used herein,
includes, but without limitation, any individual, partnership, asso-
ciation, corporation, orl other form of enterpris, engaged in the
industry either as an employer or on hris or its own behalf.
SECTION 5. The term "P~roduct'" metanos and includes Screw Mia-
chine Products, as that term is defined he~rein.
SECTION 6. The termn "Employee as used herein includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
SECTION 7. The term "Employer as used herein includes anyone
by whom any such employee is compensated or employed.
SECTION 8. The term "Basic Code as used herein is defined to
mean the Basic Code of Fair Competition for the Fabricated Metal
Products M~anufatcturing and Metal Finishing and MIetal Coating
Industry as approved by the President on the 2d day of Novemaber,
SECTION 9. The term "Association" means National Screw Ma-
chine Products Association, or its successor.
SECTION 10. The termz "Board of Directors" means Board of Di-
rectors of National Screw Machine Products Association, or its
SECTION 11. The term "Managing Director means Managing
Director of National Screw Machine Products Association or such
other impartial and confidential agency as the Supplementary Code
Authority may designate.
SECTION 12. The term "Supplementary Code Authority"' as used
herein, is defined to mean the agency which is to adrminister this
Supplemnentary Code as hereinafter provided.
SECTION 13. The term "Member of the Code" as used herein shall
mean any member of the Industry who shall have assented to the
provisions of this Code by instrument in writing duly filed with the
ARTICLE III EMPLOYMENT PROVISIONS
This Industry is a division of the Fabricated Metal ]Products
Manufacturing and Metal Finishing and M/3etal Coating Industry
and the wage., hour and labor provisions in Article III of its basic code
as approved by the! President November 2d, 1933, including Section
1 of said Article III by which the provisions of Subsections (1), (2)
and (3) of Section 7 (a) of T~itle I of the Act are made conditions of
this Code, are specifically incorporated herein and made a part hereof
as the wage, hour and labor provisions of this Supplementary Code.
~ARTICLE IV---ORGANIZATION AND ADMINISTRATION
SECTION 1. During the period not to exceed sixty (60) days follow-
ing the effective date, the Board of Directors shall. constitute a Tem-
porary Supplementary Code Authority, who shall, havPe all the powers
and duties of the Supplementary Code Authority herein set forth,
until the Supplementary Code Authority is elected. There shall be
constituted within the sixty-day- period a Supplementary Code Au-
thority consisting of seven (7) members to be elected by- the members
of the Industryr in, the manner hereinafter provided, at a mleetin~g
called by the Tem~porary Supplemenltary Code Authority, upon ten
days' notice sent by7 registered mail to all members of the Industry,
whose names can be ascertained after diligenzt search, who may vote
either in person or byr proxy. The members of the Supplementary
Code Authority first elected shaltserve until the following annual
meeting of the Association and until their successors are elected, and
thereafter, members of the Supplement~ary Code. Authority shall be
elected immediately after each annual meeting of the Association t~o
serve until their successors are elected. Notice of ech~~ election shanll
be sent in, the manner above provided. The memberhiphi of the
SupplemecntaryT Code. Authority shall be made up as followss:
(a) Five (5) memnber~s wcho shall be members of the Industry elected
by a majority vote~ of the members of thEe Association present in per-
son or represent ted by proxy, eachl member to have one vote.
(b) Two (2~) members, who are not members of the Aissociation to
be nomlinated and elected by majorityy vcote of th~e members of the
Industry who are not members of thbe Association, present ini person
or represented by proxy, each member to have one v-ote. In the event
thzat the said, non-m1embers of the Associat~ion should fail to elect said
two (2) members from amng their number, or in thte event of a,
vacancy occurr~ing in this number, the Supplemecntary Code Authority
shall submit, several nomlinations of members of the I[ndustry not
members of the Association to thze Administrator, who shall thereupon
name such member or :members.
(c) A vacancy in the Association membership of the Supplementary
Code Authority mxay be filled byT majorityS vote of the remaining
Association members of the Supple~mentaryT Code Authority.
(d) In addition to the above. the Adminstrator may appoint one
(1) representative wvithout vote and without expense to the Induistr,
unless the Su pplemnen tary Code Au thori ty agrees to payg such expenses,
to serve wlit~lh said Supplementary Code Authority in the! administra-
tion of this SupplementaryT Code. Said representative shall be
entitled to reasonable notice: of all meetings of th~e Supplementary
SECTION 2. An Association/TInstitute and/or Bureau directly or
indirectly participating mn the selection or activities of the Supple-
menit~arly Code Authiorit~y shall (1) impose no inequitable restrictions
on membership, and (2) submit to the Aidministrat~or true copies of
its Articles of Associat~ion, 1By-Laws, Regulations anrd any amend-
ments when mnadel thereto, together with such other information as
to memrbershi, organization, and activities as the Administrator may
deem necessary to effectuate thze purposes of the Act.
SECTION 3. In order that the Supplementary Code Authority shall,
at all times, be trulyS representative of thle Industry: and in other
respects comply with the provisions of the Act, the Admlinistra~tor
may prescribe such Hearings aLs he may deem. proper; and, thereafter,
if he shall find that the Supplementary Code Aut~hority is not truly
representative or does nrot in other respects comply wiith the pro-
visions of th ~Act, may require an appropriate modification in the
method of selection of thie Supplementa~ry Code Authority.'
SECTION 4. The Supplemcntarry Code Authority is hereby consti-
tuted th agency to administer the provisions of Ithis Supplementary
Code and to collect and distribute all statistical reports of the Indus-
try. With a view to keeping the President informed as to the observ-
ance or non-observrance of this Supplementary Code, said agency
shall collect through the M~anaging Director, such statistics as called
for by the President and/or thre .Administrator and send the i such
form as the President and/or thle Administrator may require to the
Fabricated Mietal Produlcts Federation, or successor organization, as
05812"--482- IT ---4 -
the agency administering said *Basic Code. All individual reports
shall be treatedl as confidential by the M~anaging Director and shall
not be disc~losedt to any member of thLe Industry or anry other- party
except where necessaryv in thae enforcement of this Supplementary
Code and exscept to such go~vernmlentail agencies as may be directed
by the Administrator.
SECTION 5. Said agency shall also from time to time furnish to the
Basic Code Authoority, decsignaited in said Basic Code, such. informa-
tion as may be required to be furnished under the terms of said Basic
SECTION 6. The Supplemnentaryj Code Authority shall have power
from time to time to require each member of the Industry to furnish
to the Mallnaging Director such information concerning the produc-
tion, shipments, sales and orders of each such member and the hours
of labor, rates of pay and other conditions of employment at the plant
or plants of such member and such other information as the said
Supplementatry Code Authority shall deem necessary or proper in
order to effectuatte the purposes of this Supplementary Code and the
policy of the Act. All individual rIeports shall be treated as confi-
dential by the MIlanaing Director and shall not be disclose% to any
member of the Industry or any other party except where necessary
in. the enforcement of this Code and except to such governmental
agencies as may be directed by the Administrator.
SECTION 7. The Supp~lemecninry Code Authority may require that
any such information be furnished per~iodiically at such times as it
shall specify and may requi~ire that any or all information furnished be
sworn to or otherwise certified or authenticated as it shall prescribe.
Failure of any member of the Industry promptly to furnish to th~e
Managing Director information required by the said Supplementary
Code Authority and substantially~ m the formz prescribed byT it shall
constitute a violation of the Code. The Supplementary Code Author-
thority- shall not requirede~ any information regarding trade secrlets.
SECTION. 8. Anty or all information furnished to the Managing
Director by any corporate member of the Industryr specifically
assenting hereto pursuant to the provisions of this Code, shall be
subject to verification by an exramination. of the pe-rtinent books,
accounts and records of such member by the Mbanaging Director or
by any accountant or accountants or other pe-rson or persons desigr-
nated by the Supplementary Code Authority (none of whom shall
be connected with any member of the Industry) and shall be so
checked for such purpose, if the Supplementary Code Authority
shall require it. TPhe cost of each such examination shall be treated-
as an yelpese of admllinistering the Code.
SECTION 9. All mnemrbers of the Indlustr~y are subject to the juris-
diction of thle Supplelenltar~y Code APuthlority; shall be entitled to
participate in and share the benefits of the Sup~plemnentary Code
Authority; shall. be entitled to vote in the selectionl of the Supple-
mlenttary Code Authorit~y as provided in Section 1 of this Article; and
shall pay to the Managing Director as the age~nt. of the Sulpplem~entary
Code Auth~ority their reasonable share of the expenses of the Admin
istrantio'n of this Supplementary Code, such reasonable share to be
determined by the Supplementary Code Authority, subject to rev-iew
biy the Ad~ministrator on the basis of volume of business and/or such
other factors as may be deemed equitable by the Supplementary
SECTION 10. Nothing contained in this SuppDlemlentary Code shnall
be deemed to constitute the members of the Supplementaryr Code
Authborityv, partners for any purpose, whatsoever.. Nor shall any
member of the Supplemecn tary Code. Authority he liablle in. any
manner to anyone for any act of any other member, officer, agent or
employee of the Supplemntar Code Authority. Nor shall any
member of t~he Supplemecntary Code Aluthority, exercising reasonable
diligence in the conduct of his duties hereundecr, be liable to anyone
ftor any action or omission to act under this S~upplementaryT C.ode
except for hiis own willful1 mIisten;SanIce: or nlon-fessance.(
SECTION 11. If any member of the Industry: as defined herleinl is
also at member of any other Industry, the p~rovisions of this Codo
shall apply to and! affect only that par't of hlis business which is in-
cluded in the Industry-.
SECTION 12. The Suppelementarry Code Authority- shall without any
limitation on t~he foregoing have the follow~ing further ge~neral powers
and duties subject to such rules and regulations as may- be prescribed
by the AIdminist~rator.
(a)B TIo insure t~he e~xecution of the provisions of this Sulpplemcnta r$
Coeand provide for th37e compliance of the TIndustry w\ith thle provil-
sions of the Act.
(b) To adopt by-lawis and rules and regulations for its procedure
and for the administration of the Supplementary Code.
(C) To obtain from menbers of the Industry such information anzd.
reports as are required for the. administration of the Supplementary
Code. In a7dditionl to inlformation required to be submlitted to the
Sup~plementary Code. Authorit~y,all or any of the per~sons subject. to
this Supplementary Code shall furnish such statistical information
as the Adminstrator may deem necessary for the pulrposes recited
in section 3 (a) of the Act to such ]Fedteral and State agencies as the
Administrator may1 designate. Provided that niothingintsSple
men tary Code shall reieve, any mecmber of the Industry of a ny existing
obligaations to furnish ~reports to an government agency.
(d) To use such trad-e associations and other agencies as it deemls
proper for the carrying out of any of its activities provilded for herein,
provided that nothiing herein shall relieve the Supplemecntary Code
Authority of its duties or responsibilities under this Supplementary
Code and that such trade associations and agencies shall at. all times
be subject to and comply w-ith the provisions hnereof.
(e) To make recommendations to the Aldministrator for the
coordination of the administration of this Supplementarry Code w-ith
such other codes. if any. as ma~y be relalted to the Industry.
()T~o secure. from members of the Industry~ an eqluitable anzd pro-
potonazte payment of the reasonable expnses of ma~intaining the
Supplementary Codo Authority aind its activities.
(g) To cooperate w~ith the Admiistraztor in regulatinga the use of
any N.R.A. insignia solely by those members of the Industry wiho have
assented to, and are complying -ith1, this Supplementary Ciode.
(h) To recommend to the Aldministrator further fair trade practice
provisions to govern members of the Industry in their relations with
each other or with other industries and to recommend to the Aldminis-
trator measures for industrlrn planning, including stabilization of
SECTION 13. If the Admzinistrator believes that any action of the
Supplementary Code Authority or any agency thereof is unfair or
unjust or contrary to the public interest, the Administrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action. Further action by such
Supplementary Code Authority or agency regarding the matter com-
plained of may be taken if approved by the Administrator but shall
not be taken if disazppro~ved by the Administrator within thirty day-s
of notice to him of intention to proceed with. such action.
ARTICLE V~-U-TNFAIR PRACTICES
SECTION 1. For all purposes of this Supplem~entary Code, the fol-
lowirng described acts shall constitute unfair practices. Such unfair
practices shall be deem~sed to be unfair methods of competition in
commerce within the meaning of the Federal Trade Commission Acfi
as amended, and the using or employing of anty of them shall b~e
deemed to be a violation of the Code, sad any member of the Inldus-
try who shall directly or indirectly, through any officer, employee,
agent or representative, knowingly use or employ any of such. unfair
practices shall be guilty of a violation of this Code.
A. The sale or exchange of anly product in whole or in part below
the cost of such product to any individual employer determined
according to the ~estimating ~formula set forth in Schedule A hereoff,
or the violation of anly provision of said Schedule.
Provided howev-er, that dropped lines, seconds or inventories
which mus? be converted into cash to meet emergency need may be
disposed of in such. manner and on such terms and conditions as are
necessary to move such product into buyers' hands; and all such, in-
tended sales or other dispositions of such products shall be! reported
immediately to the Managing Director; and
Provided, further, that no provisions of this Supplementazry Code
relating to prices or terms of selling, shipping or marketing shall azppl~y
to or affect the sale of any product for direct shipment in export trade
by any member of the? Industry within the meaning of the term
"export trade" as it is used in the Export Trade Act.
B. T~he provisions of Article V, paragraphs B to G inclusive of
the Basic Code are a part of this Supplementary Code, to the samre
extent as if here repeated and set forth, in full.
C. To quote or contract other than subject to the Standard Termns
and Conditions of Sale shown in Schedule B hereof, Iwhich shall be set
forth in full in a prominent place on all quotations and contracts.
D. Making contracts of sale that permit the buyer to cancel and/or
provide for at 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.
E. Making contracts requiring delivery of specified quantity or.
quantities in. specified time, if demanded by buyer, but not requiring
the buyer to accept such quantity or quantities within the specified
F. Making cont.ra7ct~s of sale for products of the Industry at a
specified price for periods in excess of three (3) months (all such
contracts to expire not later than the last days of Mlarch, June,
September or December) or quoting on or entering into such contracts
more than sixt (60) days prior to the first day of the quarter, or
shipping pursuant to ainy such contract more than fifteenl (1,5) da:ys
after the expiration thereof, or as soon thereafter as seller can manlu-
facture and shi the same, or making such contracts containing on
option of extension or renewal on the part of either buyer\c or seller."
G. Accepting orders for deliveries extending b~~-cndt four (4)
months from date of orderly
H-. Accepting any contract for an unspecified qua~ntity, unless a
minimum quantity per release is specified, and unless it is agreed
that specifications placed durig the laist thid thereof shall not
exceed the number of pieces specified for shipment dlr~ing the first
I. Cancelling, in, whole or in part, or nprmilt ting the cancellation,
inl whole or in part, of anyT contract of sale of any product except for
justifiable cause or a fair consideration.
J. Consigning mlerchandise for any reason w~hatever except to a
wholly owned or controlled subsidiary or except under circumstances
approved by the Supplementary Code Authority where peculiar
circumstances of the Inldustr make h1e! practice desirable.
K. Renting or selling on deferred payments automatic or hand
screw machines to operators for the purpose of avoiding or attempting
to avoid any of the provisions of this Code.
ARTICLE --VI-MNOroomE S
No provision of this Supplementary Code shall be applied so as to
permit monopolies or monopolistic practices, or to elinunate, oppress
or dicrimnae against small enterprises.
SECTION 1. This Supplementary Code and all the provisions
thereof are expressly made subject to the right of the Preside~nt, in
accordance: wtih provisions of subsection (b) of Sect~ion 10 of the Act,
from time to time to cancel or modify any order, approval, license,
rule or regula tion issued under said Act.
SECTION 2. This Supplementary Code, except as to prov-isions
required by the Aict, may be modified or amended on the basis of
experience or changes in circumstances, such modifications or amend-
ments to be based upon application by thie Supplementary Code
Authority or other representative group within the Indust~ry to the
Administrator and such Notice and H~earing as he shall specify and
to become effec tive and a part of ths Su pplemen ta ry Code on approval
by the President.
ARTICLE VIII--PRICE INCREASES
Whereas the policy of the Act to increase real purchalsingr power
will be made more difficult of consummation if prices of goods and
services inrcrse las rapidly as wanes, it is recognized thrat price in-
creases except such as mlay be required to meet individual costs should
be delayed, but when made, such increases should, so far as possible,
be famited to actual additional increases in the seller's costs.
I Deletedi. See p~ararph 2 (2) of order: approving this Cod~e.
ARTICLE IX---EiFFECTIVE ~DATE AND) DURATION
This Supplementary Code shall become effective at 12:01 o'clock
A. Mi., Eastern Standard Tim~e, on the tenth da~y after it is approved
by the President and shall continue in effect until June 16, 1935 or
the earliest date prior thereto on which the President shall, by procla-
mation, or the Congress shall by joint resolution declare that the
emergency recognized by Section. 1 of TCitle I of the Nlrational Industrial
Recovery Act, h3as ended.
Approved Code No. 84. Supplemlent No. 18.
Registry No. 1104-11.
Estimates mad by members of th~e Industry regardless of the estimating
mtethods they employ, shal result in an estimated cost thant in no case shall be
less than a cost which would be arrived at by the use of the following esitimating
formula and no quotaion or sale shall be made except based upon, a written, esti-
mate in such retasonale detail as to indicated~ clearly that ]Paragraph 11 of this
chdul ha bee complied with and such. estate for all products manufactured
and sold is to be retained by the particular member of the Industry together with
the price charged the customer therefore and a, record of the actual average n~et
production per hour on the entire ordeFr:
1. Material at Market Cost, the market to be determined by the publishd
base price, plus delivery cost to cestimator's plant, plus size, quantity and othe
applicable extra on daite of quoting for quantity required for each item esti-
mated, with scrap credit allowance computed at 80%~ of published market for
less than car load lots on said dat. Market on material and scrap shall be de-
terined by reference to the published market for said commodities as set forth
in "'American Metal M1arket"', or to other sources approved by the Supplementary
Code3 Autorit~y, or in. the~ event of the~ discontinuance of said pub~lication, as set
forth in, any other similar publication, approved by thfe Supplementary Code
Autorty. Est imated quantity of matterial to be based on length of piece, plus
cut-off, plus facing (if any), plus bar ends, plus waste arising from defective
pi~ce~s. Wase arising from defective parts and from bar ends shall be figured at
not les than 5% of gross material. All weights for material to be figured from a
recognized table giving weights per lineal foot.
2. A charge for all necessary special tools including duplicates if required for
the quantity (and also special taps, dies or chasers) fixtures and/or gauges, which
shall consist of their direct prime cost (cost of material and direct labor) plus
overhead which shall not be less than 75%~ of the said dirzect labor. If purchased
outside the cost of such tools shall be included at cost to the estimator.
3. A special charge for ""set-up"" which shall be based upon. the full time re-
quired for such "set-up" at thie current full hourly rate paid to the set-up man,
plus the overhead ~hourly cost of the! machinet being set-up which is to be deter-
mined by tlhe use of thie formula contained in Paragraph 6.
4. Net production computed at nlot over 75%0 of geared production on standard
single spintdle automatic machines; nlot over 70% of geared production on ~hi
speed single and on multiple spindle machines; and not over 80%0 of gross pro-
duction on! second operattion and hand screw machines.
5. Direct Laor Machine H~our Cost, arrived at as followsI: The Index Labor
Rate used in order to compute the direct labor as called for in ths paragraph
shall be the current average hourly rate paid by the estimator to a first-class
operator for the type of machine involved when such operator is compensated
on an houry basis. Such first-class operator shall be defined as one whose daily
duties are to setup or set-up and operate machines, wsithout tetchnical assistance.
To arve? at the average hourly rate paid to first-class operators in case more
than one is employed, add together the sum of the different currnt hourly raes
paid to first-class operators s ad divide by the number emplloyed. T~o arrie at
the Direct Labor MIachine Hlour Cost, divide the Index Lab~or Rate of first-claeas
operators arrived at in accordance with th~e forgoing byr the D~ivisors for different
types of machines in t~he table belowv:
When no first-class operator as deflined is employed on an hourly basis and
machines are both set-up and operated by a single individual who is paid on a
piece work basis, the Index Lab~or Rates shall b~e set for thle particular plant by
the Supplementary Code Aurthorit with Lthe approval of the Administrator,
which Index Labor Rate shall not ber fixed at a higher figure than that of the
average Index Labor Rate of other similar plants in the Industry similarly
situated but compensating their employees on an hourly basi.
I See paragraph 2 (1) of~ ore pproving thlr coe.
Single Spindle Machines:
Low Speed--Up to 3/" inclusive, use Divisor 4.00
%"/g to %"N 3.75
over %",' "c 3.25
High Speed--Up to Ne" inclusive, use Divisor 3.50
Mie" to %" "( "c 3.25
over %/" "c 3.00
Multiple Spindle M~achines:
Up to %"N capacity inclusive, use Divisor 2.6
1" to 15/" "c "e 2.4
over 1%"r "c "c 2.0
To arrive at the Direct Labor 'M/achine Hour Cost for second operation and
hand screw machines where the machine requires an operator exclusively, use
as the Index Labor Rate the average full pay per hour to operators of the second
operation or hand screw machines to be figured.
6. Overhead Machine Hour Cost consisting of the product of the calculated
Direct Labor Machine Hour Cost (as determined inl Paragraph 5) and the factor
"F" plus the overhead constant "A" both for the type of machine involved.
(The factors and constants appear in the table following.) The particular auto-
matic factors and constants for the types of machines involved, shall be applied
to the Direct Labor Machine Hour Cost for the corresponding automatic ma-
chines. The particular second operation and hand screw machine factor for the
types of machines involved shall be applied to the Direct Labor Machine Hour
Cost for the corresponding second operation or hand screw machines.
Single Spindle Machines: F A
Low Speed-Up to %/" inclusive --_ _........ 1. 075 $0. 337
%" to %"~ "I --.. -------.-- ...--- 1. 15 37
Over 5/" ... .....___,_ 1. 225 401
High Speed-UTp to jNe" inclusive _...--,,, 1. 125 375
Me"H to %", ._____ .___. 1. 20 395
Over K" _____ ___,_ 1. 25 416
Multiple Spindle 2Machines:
Up to Ys" capacity .. ,- __ .....----,- 1. 305 361
1" to 16/s" .. .....____________ 1. 33 40
Over 1%" ... _-__-_________- 1. 375 495
For Overhead Machine Hour Cost of automatic low and high speed single
spindle machines and multiple spindle machines:
Overhead Machine H~our Cost= DX F +A
When D= Direct Labor Machine Hour Cost
F= Overhead Factor for particular machine involved (see above
A= Overhead Constant for particular machine involved (see above
Secondary Operation Machines and H-and Screw Machines either for Primary
or Secondary Operations:
Machines costing less than $750 _...----------- 1. 00
from $750. to $2,000 _-_ ... ......,, 1. 25
over $2,000 ........ ......... ,,,,,, 1. 50
For Overhead Machinle Hour Cost of Secondary Operation and Hand Screw
Overhead Machine Hour Cost DX F
When D--Direct Labor Machine Hour Cost
F= Overhead Factor for particular machine involved (see above
Explanation: The Overhead Factors for Machine Hour Cost as detfinetd in
Paragraph 6 include th minimum possible charges comprising~ proper overhead
a. Fixed Charges, such as depreciation ont al plant equripment based on rae
allowed by income tax regulations, property tae and/or rental cost, insurance.
b. All Other Variable Factory Expense suh as supplies, light, hecat and power,
factory supervision and inldireict wages; repairs and matint~enance, either in the
form of wages or purchases or both, and all other items of expense connected with
regular bulk packing and shipping, rough inspection, ordinary cleaning, oil sepa-
ration, stock handling, and other similar items.
c. Admnistrative and Offce! Expense, including executive and office workers'
salaries together with charges for offce supplies and al other items of expenset
pror erlyr chargeable to this classification.
7. A Special Charge at a fair estimated cost for al opetrations similar to the
following: Any inspection ote ^than rough inspection, plating, hardening, or any
special packing other than regular bulk, packing and other similar operations.
This special charge shall include a resnable charge for overhead w~ithl respect
thereto, since the factors given above in 1Paragraph 6 do not include overbead on
such special operations.
8. To determine the mainim~umt cost belowp whch no product may be quoted or
sold, addthefolo wing
Material Cost as explained in ~Paragraph 1--
A Charge for special tools rand se~t-up as explained in Paragraphs 2 and p--
TIhe Direct Labor Machine Hour Cost explained in Paragraph 5--
Overhead Machine Hour Cost explained in Paragraph 6--
And other special items as explained in Paragraph 7-
To the sum of these items, add an additional charge of 5%J thieref30 on brass
products and miscellaneous base metal products other than steel, and on steel
products 7)(% thereof to cover selling expense.
To the cost so obtained must be added 1%o to cover cash discount.
The resulting figure will be the minimum cost, below which a product shall not
be quoted or sold.
Tota estimated cost exclusive of sales cost and
cash discount explained in Paragraph 8 and -- M + T+ $S+-X (D+ A+ (FX D))
special estimates explained in Paragraph 7
Whn, M= Cost of Mlaterial as set forth in Paragraph 1
T=CoCst of Tools as set forth ian Paragraph 2
8= Cost of Set-up as set forth in. Paragraph 3
X= Number of H-ours required for whole job
D= Direct Labor M~achine Hour Cost as set forth in Paragraph 5i
A = Overhead Coastant Cost set forth in Paragraph 6
P = Overhead Factor set forth in Paragraph 6
9. In the case of articles made for stock and delivered in smaller quantities to
customers, the minimum that can be quoted shall not be less than a cost estimated
in accordance with this estimating formula for the exact quantity delivered or a
cost estimated for the last quantity made for stock by the! use of said formula
plus a reasonable charge for carrying stock and for obsolescence.
Cau'rloN: Th~e estimrating formula set forth in this code includes only costs in ea~ch
instance at the irreducible minimum an does not include any proftl to the estimator
or any interest on invested capital. Thet sumt toal of thee irreducible mnzi~ma will
result in a cost belowr that of the average as ind~icated by the questionnares sent out to
the industry. All members of the industry are cautioned that urse of this forula as
a selling basis ulill not only not produce ar profil but tol produce a loss on thte average,
and that the formular is merely intended to establish an irreducible cost below which
no one should quote.
10l. The provisions of this estimating forula may be modified or ameded
on the basis of experience or changes in circumstances, byr th Supplementary
Code Authorityv with the approval of th~e Admlinistrator, at any time, and in any
event six month safter the effective date of t~he Code, upon th direction of the
Administrator shall be reviewed and modified by him, after such hearing as hec
shall prescribe if he shall determine that such modification is nescessary.
11. Members of the Industry shall not etstimate otherwise thwn puruant to
an estimate which includes cost of maeral at market, deterine by published
base price plus size and qu~antity extas on date of qluoting for quanrtity. required,
with ecrap credit allowance computed at eighty per cent (80%r) of punished
market for less than carload lots on said date, labor based on a net production
to be figured at not over 75%r of geared production on standard single spindle
machines, not over 70%0 of geared production on high speed single spindle and
on multiple spindle machines, and not over 80%j of gross production on second
operation and hand screwv machines, a reasonable charge for overhead, deprecia-
tion, selling and administrative expense, and cash discount. Market on material
and scrap shall be determined by reference to published market for said commod-
ities as set forth in "American Metal Markets ", or to other sources approved
by the Supplementary Code Authority, or in the event of the discontinuance of
said publication, as set forth in any other similar publication approved by the
Supplementary Code Authority.
12. Members of the Industry shall not make a repeat quotation or accept a
repeat order at a price based upon an estimated speed setting that cannot be
obtained on a machine in the particular member of the Industry's plant.
13. Members of the Industry shall not estimate or quote on the basis of a
speed setting which the particular member has reason to know cannot be ob-
tained or on the basis of any other facts, ~figures or data which such member has
reason to know are inaccurate.
14. Members of the Industry shall not accept any order based upon. an esti-
mate or quotation made more than fifteen days prior to the date of the order if
the market price of the material has gone up between date of estimate or quota-
tion and date of order.
EXAMaPLE OF THEi APPLICATION OF SCHEDULE "A" TO A STANDARD SINGLE)
SPINUDLE 8/g"--f" CAPACITY JOB or 50,000 PIECES
Hypothetical rates used
Paragraph 1.-MCaterizl: M Pieces
MJaterial-Brass-60O Pounds per M, at market of 124 base
plus size, quantity, extras, and delivery_----- $7. 20
Plus 5%/ for defective work and loss of bar ends .... .... 36
30 pounds of scrap @ 80%0 of market which is 4g per lb... -. 96
Net Material Cost, per M_,__-_---,, ,,,, ..... $6. 60
Paragraphs & & S--Set-up and Special Tool Charge:
Set-up-5 hours @ 70~ per hour ..................... $3. 50
Plus Machine Overhead:
FX D+AX 5, or 1.15X.186+.37X 5= -- .........- 2. 92
6.42+~50= cost per M_ _- --_ _- _... .- -- -- 128
Special Tools and Fixtures, including cut-off tools, cams,
form tools, special counter bores, special size taps, dies
and chasers __ _--------------- ...10. 50
Tool Ro'om Overhead 75% _,,----- 7. 875
$18.375+-50 equals cost per M .. .. ...-------- 368
Paragraph 5-DCirect Labor Machine Hour Cost:
Geared Production 600 per hour @ 75% equals 450 per
hour net production or 2.22 hours per 1000 pieces
times the Direct Labor rate of .186 per hr.= 4129
Paragraph 6--Overhead Machine Hour Cost:
Formula= FX D + AX 2.22, or 1.15 X .186 +.37 X 2.22 ... --- 1. 296
Paragraph r-O-ther Special Items:
Other Items of Cost:
Plating 3g4 X 30 lIbs. per M = _- _, _- .---- 90
Total of paragraphs 1, (2 and 3), 5, 6, and 7_ ...-- $9. 7049
Plus selling expense, 5%0 of same .. .....,--------------------- 4852
Plus 1%o cash discount......................--- ------------ 1019
Estimated minimum cost, per M,-................--------------- $10. 2920
BTAND)ARD TERMSLE AiND CONDITIIIONSI OFP BALE
Terms.--Discount of on~e percent on the 10th of th~e month covering invoices
between the 16th and the lat day of t~he preceding month, both inclusive, and
one perent on the 25th covering invoices between the let and the 15th, both
inclusive, of the same month, or net 30 days from date of shipment.
General.-Stenographical and clerical errors subject to correction. Until orde
is accepted, prices are subject to change without notice. Unless otherwise speci-
fled, prices quoted are onl product as dropped from the screw maachinze. All quota-
tions, unless otherwise stated, are for immediate acceptance. All orders and
contracts subject to approval, if accepted by a saleamuan or selling agent.
Credit.--Accounts opened only with firms or individuals on approved cre~dit.
Th seller reserves the privilege of declining to make deliveries except for cash
whenever, for any reason, doubt as to the buyer's fi nancial responsibility ty~ dev elops,
and shall not, in such event, be liable for non-perforance of contract in whole or
C'ancellation.--Orders plaed cannot be! cancelled, nor can defe~rred deliveries
of gods mnade up or in process be extended beyond the original delivery date~
specified, excep with the seller 's consent and upon terms which will indeomnify
him against all lose.
Quotations.--It is understood, that all estimates and/or quotations are subject
to change witout notice, until order is accepted.
Quantilies.-All quotations are based on customer accepting over-uns or under-
run no exceeding ten percent of quantity ordered, to be paid for or allowed pro
Delivery.--Every effort will be: made to fill orders within the time promised.
Unless sjpecifical sftated to the contrary, quotations are made and orders are
accepted for deliver as fast as manufactured.
Samzples.--If requested, the seller~ will submit samples for approval when com
mencing operations upon any order, but does so wpith the understandig that his
machines are to be run immediately after they are set corr~etly to customer's
specifications, and he wil assume responsibility for having the product in, con-
formity with the original specificattion~s during the period necessary in. which to
obai customer's approval. A1Sny change in specifications can be made only at
customer's direction and exense. It is accordingly~ advisable to telephone or
telegraph at once? if changes are to be maade.
Clairns.--If any material furnished by seller proves defective, or not as ordered,
he must be notified within one week from receipt of shipment and shall have the
option of inspecting the goods on. buyer's premises or of taking back the goods
and deciding whether he shall replace thiem or not.
Tolerances.--All dimensions must be limited by~ a specified toleance. Wh"Ven
not specified by a customer it is understood that commercial tolerances apply:
vis., for decimal dimensions, plus or mius .002 for dimeer, and plus or mzinus
.010 for lengths and for fractionlal dimensions, plus or minus .005 onl diameters,
and plus or minus .010 on lengths. Samples to be considered as fractional dien~-
sions, unless otherwise specified.
When buyer purchases pursuant to his own specifications, the seller wil not be
responsible for the design and fitting of parts; the conforming of the seller's part
to the specified tolerances is sufficient evidence as to the correctness of the products
It is definitely understood that concentricity is not a dimension, but is the
relation that one dimension bears to any other and must be specified separately froma
dimensions. W'hen concentricity limitation is specified, it is understood that;
it means the actual eccentricity llowableC? between two dimensions and that th
actual eccentricity is one-half whiat is registered by a dial reading. WVhen con-
centricity is not specified, the work will be m~anufatured in the; most economical
manner without particular regard to concentricity and quotations ar mad an
orders are accepted on thisj baLsis.
UNIVERSITY OF FLORIDA
18 3 1262 08855 6773
Thr~eads.--It is understood that customer shall specify the standard to which
threads shall conform. The Seller will follow the commonly accepted standards,
namely U.S. (American-National) form for threads when no other form of thread
is specified. As there is no standard for V threads gages maust be furnished by
the customer should this form of thread be specified.
Extern~al threads.U~nless .otherwise specified the seller will wCork to the limits
specified by the National Screw T~hread Commission's 1933 report for Class 2
Free Fit. If the specified tolerance is not in agreement with the N.S.T.C. speci-
fication for classes 1, 2, or 3 fits, "go" and "not go" gages shall be furnished by
Where threading to a shoulder is specified, it will be understood that the last
full thread will not be cut closer to the shoulder than a distance of two threads
and in the case of fine pitches, never closer than. M/s".
Internal threads.--Unless dimensional limits for minor diameter of tapped hole
are specified, threads will be tapped to 2/3 full depth in accordance with the!
regular practice recommended by the tap and die manufacturer and unless
otherwise specified the seller wvill work to the limits specified by the National
Screw Thread Commission's 1933 report for Class 2 Free Fit for tapped holes M/"
diameter or over and to Class 1 Loose Fit for tapped holes less than Y"1 diameter.
If specified tolerance is not in agreement with the N.S.T.C. specifications -for
Classes 1 and 2 for holes less than YM" diameter and for Classes 1, 2 and 3 for holes
N"~ diameter and over, "go" and "not go" gages shall be furnished by the
Blind tapped holes will not have a full thread closer than five threads from the
bottom and in the case of fine pitches never closer than %3~2".
Gages.--Gages are not included in estimated price unless especially stated.
Where tolerances are closer than commercial limits defined under "Tolerances",
or when dimensions cannot be readily gaged with. standard gages or micrometers,
customers may furnish manufacturing gages or such gages may be supplied by
seller at cost.
Inspection.--Quotations do not include 100 per cent inspection unless especially
stipulated. Although it is the intention. to charge for only good work without a
100 per cent inspection, delivery in this wmay cannot be guaranteed. It is there-
fore understood that such individual inspection will be made by the customer at
his expense and that only parts which, have been proved defective by customer's
individual inspection will be returned with a claims for credit or replacement at
seller's option. When thne manufacturing tolerances are closer than. commercial
limits defined under tolerances the dimensions of the inspection gages to be used
by the purchaser shall be furnished the manufacturer. In. the case of threads
t~he inspection gages shall not be outside the limits specified by the N.S.T.C. for
Dies, tools, etc.-Charges for dies, tools and/or gages do not convey ownership
or the right to remove them fromn sellers factory, but buyer maay purchnase dies,
tools and/or gages.
Responsibility.--Seller is not responsible for drawings, samples, models, or
gages uncalled for within thirty days after the execution of any order or quotation.
Shipments.--In. ordering, the customer should state explicitly the method of
shipment preferred. In the absence of shipping directions the seller will use! dls-
cretion forwarding by express or parcel post when packages are small and there-
fore liable to be lost in transit by freight. Parcel Post shipments will be insured
at customer's expense unless otherwise specified. The seller assumes no respon-
sibility for placing valuations upon shipment unless specifically requested to do
so by the customer.
Customer's material.-Quotations covering the machining of buyer's material
are subject to chah~ge if material furnished will not machine at speed and feed
estimaated. When1 the material is furnished by the buyer, the seller cannot guar-
antee to furnish more than ninety percent of the amount of the order. W~hen
strictly special material is used, this may vary.
Patents.--It is not the intention of the seller to manufacture any product which
is an infringement of a patented article and it is understood that the se-ller be
notified if the parts on which he is quoting are infringements of letters patent. If
any such infringement exists, the seller reserves the right to withdraw thre quotation.