NATIONAL RECOVERY ADMINISTRATION
SUPPLE M ENT ARY
CODE OF FAIR COMPETITION
SOCKET SCREWB PRODUCTS
(A Division of the Fabricated Mletal Products
MIanufacturing and M~etal Finishing
and Metal Coating Industry)
WS D0OQUR PARt
GOVERNMENT PRINTING OFFICE
Por sal by the Baperintendent of Do~cumnse Washlageon, D.C. Prices eents
Approved Code No. 84--Supplement No. 49
Registry No. 1104--03
AS9 APPROVED ON SEPTEMlBER 1, 1934
UNIV. OF FL LIB.
OCUMENIADE P T
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D).C., and by district offices of the Bureau of
lForeign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Buildingv.
Boston, Mlass. : 1801 Curstomnhouse.
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 Buikling.
Detroit, Mbich.: 801 First National Bank Building.
HEouston, Tex.: Chamber of Commerce Building.
Indiana~polis, Ind.: Chamber of Commerce Building.
Jackssonville, Fla.: Chamber of Commerce Building.
K3ansas City, MLo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.:^ 408 Federal Building.
Mlemphis, Tenn.: 229 Federal Building.
Minn~eapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-Ar, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Vat.: 406 East Plunie Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Orego.: 215 New Post Oflice Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 810 Customnhouse.
seattle, Wash.: 809 Federal Ofihce Building.
Approed Code No. 84-Supplement No. 49
SUPPLEMENT ALRIY CODE O;F FiAI[R COMPETITION
SOCKET SCREWt PRODUCTS MAINUFACTURING
As Approved on Septemnber 1,.19341
ArrnRovrwo SUPPL]EMENTARY CODE OF FAIR COMPI~CTF'TIN FOR THEIR
SOCKET SCREW PRODUCTS 11ANUFACTURING INDUSTRY
A Dr\IIslrIN OF THE FABRHICA~TED >fETAL PHODUll-CTS MANUrFACTURLING AND
META1L FINISHIING AND) META~L C'OATING: INDrdTRY
An application having been duly malde p~lursunt to and in full
compliance with the provisions oof ~Title I of the N~ational Ind~ustrial
Recovery Act, approved June 16, 1983,! and in ac~corda'nrce with the
provisions of Section 1. of Ai~rticle VIl of the Basic Code for the
Fabricatedl M~tal Products M\anufaclturing and Mfetal Finlishing and
Metal Coating Industry, approved Novembexr 2, 1933, for approval
of a Supplemnentary Code of Fair Competition, for the Sockiet Screw
Products Ma~nufacturing: Industry, and hearinr 'havilgr been duly
held thereon; and the annexed report on said Supplem~entary Code,
containing findings with respect thereto, having beesn made and di-
rected to the Pre~sidecnt:
NOW, THIEREFORE, on. behalf of the President of the U~nited
States, I, ]Hugh S. Jo~hnson, Ad3ministrator for Industr~ial Rec~overy,
pursuant to authority vested in mne by Exe~tcuti~ve Orders of the
President~, including~ Execut~ive Order ~No. r.WL-AZ, daRted Decemlber
30, 1933, and otherwise; do hereby incorporate by reference said
annexedl report and do find that said Supplemlentury Code corn
pl;ties ini all respects with th pertinent provisions and will promo11te
the policy and pur-poses of said Title of said Act,; anld do her~eby
order that said Supplementary Code of Fair Comnpetition be and it is
hereby approved, on condition thatt the Sc-ck~t. Screw ]Prodiucts B3u-
reau amend its Articles of Organization to the satisfaction of the
Administration within thirty (30) days after th~e effective? date of
Hoonc~ S. JO)HNSON,
Administrator for Ind~ustriaz l Recovrcly.
B3an-rox W. Maln.4Y,
Division,~ Adn.in istrat or.
FlASHINGTON, D. .C.
,Sepcn~tembe 1, I.9J.5.
REPORT TO T~HE PRESIDENT
The White HBowle.
SmR: This is a report on the Supplementary Code of Fair Com-
petition for the Sockiet Screw Products Industry, a division of the
F~iabricatedt Metal Products Mlanufacturing and Mel~tal Finishing
and Mletnl Coating Industry, the hearing having been conducted
thereon in Washington, D.C., January 19, 1934, in accordance with~
the provisions of Title I of the National Industrial Recovery Act.
The ScnketSc~reww Produc~ts Indust~rry beingr truly rep~lresentative
of this division of the F~abricated Merta1 ]Products Manufacturing and
Metal Finishing and M~etall Coating Industry, has elected to avail
itself of the option of submitting a Supplementary Code of Fair
Competition, as provided for in Section 1 of Article VI of the Basic
Code, for the Fabricated Metal Products Manufacturing and Metal
Finishing anmd MetalT Coating Industry approved by you on the
second day of November, 1933.
RFsent OF THE CODE
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Supple-
Article III. This Industry is a division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Mectal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a Supplementary Code Authority con-
sistingr of five (5) members to be elec~ctd at a meetings called by the
Temporary Supplementary Code Authnority, and gives~ the Adminis-
trator the authority to appoint one additional mnlrlembe without
vote and provides machinery for obtaining statistics and the adm~inis-
tration of the Supplemnentary Code.
Article V sets forth t~he open price provisions.
~Article VI sets forth the standards of fair competition with. ref-
erence topricing practices.
ArtcleVIIsets forth the unfair trade practices of this Supple-
mentary Code which have been especially designed to offset urnfair
competition in this division of the Industry.
Article VIII provides against monopolies and monopolistic prac-
Ardecle IX: contains the maindratory provisions contained in See-
tionl 10 (b) of the Act andl also provides fo~r the submission of pro~-
posed amlendmnents to the Supplmentary Code.
Art ilcl X recocgnizes tha~t pri'Ce increases be limnitedl to actual adtdi-
tionall increases in the seller's co~sts.
Article XI states the ef~c~tive dlate of thiis Supplemnentar~y Codeo.
The Acting Deputy Adlministrator in hiis final report to me on said
SCupplemecntary Code having found as herein set forth and on the
basis of all the proceedings in, this matter:
I find that:
()Said Supplemelntary Code is well designed to promote the
polces and purr~po~ses of Title I of the National IndustriaIl Recovery
ALct, inrcludingf removarl of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount ther~eof
anid w~ill provide for the general wrelfaret by promoting the organi-
zation of industry for the purposes of coope~rative action amonr the
trade group~s, by inducincr and~ maintaining united, action of labor
and mnagemnt un er a fieute governmental sanctions and super-
v~ision, by eliminating unfair competitive practices, by promotion
.t.he fullest possible utilization of the present productive capacity of~
industries, by avoiding undue restriction of production exceptt as
may be temnporarily required), by incresn th osmtino
dust ial and agricultural products through ti cncreasing ourhaing
power, by reducing and relievingi unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 emn-
ployees; and is not classified by me as a major industry.
(c) The Supplemaentary~ Code as approved complies in all respects
wFith the pertinent provisions of said Title of said Act, includling
wvithouit EImitation Subsection() of Section 3, Subsection (a) of
Section 7, and Sulbsection (b) o-f Section 10 thereof ; and that thie
applicant bureau is an industrial association truly representative of
the aforesaid Industry; and that said association Imposes no inequi.
table restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplemlentary Code is not designed to and will not
elimmate or oppress small enterprises and wi~ell not operate to dis-
criminate against them.
(f) Those engaged in other steps of the econonue process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplementary
HuouH S. JOHNEON,
Ad minis tra tor.
SEPTPMBLER 1, 1981.
ISUPPL-EMENTARYJ CODE OF` FAIR COMPETITION FOR1
T'HE S POCKET S CR EWO PRODUCTTS MANUFA CTURING
A DIVISION. OF THE FABRICATE METAL PRODUCTS MANUFACTUTRINIGI AND
METAL EIINISHING AND METAL COATING INDUSTRY
~AnRTIcuE I -PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentary Code of [Fair Competition for the Socket Screw Products
Manufacturing Industry. Pursuant to Article VII of the Basic Code
of Fair Competition for the Fabricated Metal Products Manufactur-
ing and Metal Finishing and Metal Coating Industry, approved
by the President of the United States on the 2nd day of Norvember
1933, the provisions of this supplementary code shall e the standard
of fair competition for such Industry and shall be binding upon
every member thereof.
SECTION 1. T'he terms President "Act and "Administrator," as
used herein, shall mean respectively, the President of the United
States, Title I of ~the National Industrial Recovery Act, and the
Administrator for Inldustrial RecovTery.
SECTION 2. The term Industry and/or "L Sockret Screw Products
Industry means and includes the business of manufacturing for
sale Socket Screw Ptroducts.
SECTION 3. The term. Socket Scre~w Products is diefine~d as Scre~w
1Products of a. type well known to the trade, each item of which has
a socket for the reception of a tightening instrument or wrench made
to fit said socket; and also including thle tightening instrument, or
wrench, itself. This term is meant to include the classifications gen-
erally known to the trade as HE-ollow or Safety Set Screwvs and Socket
Head Cap Screwsc and Wrenches therefore as now proposed by the
American Standards AIssociation Bulletin Bl38i-, a~nd also to include
]Hollow Pipe Plugs and Socketed Stripper Screws which are some-
times termed Stripper Bolts or Sockret Hlead Strippe~r Bolts or
Stripper ]Plate Screws, and also modifications of any of the above
types for special purposes.
SECTION 4. T'he term. Member of the Industry as used hereini
includes, but without limitation, any individual, partnership, associa-
tion, corporation or other form of enterprise engaged in the Indus-
try either as an employer or on his or its own behalf.
SECTION 5. The terma product means and includes Socket Screw
Products, as the term is defined herein.
SI'e~No 6. The term empllovres as ulsed herein included any~one
enga(ed inr the ITndustry in any capacity receiving comnpensation
for h~is selrvices~, irrespectiveir of the nature or method of p~aymnlcrt of
SEc'Irro, "7. Trhe term employer as used~ hereI~in includes any1!one
by wh~om~ any slc~h employee is compensantted or employed.
SECT'Iox 8. The term Ba~sic Code "' as used~ herein is dlefinedt to
mneanl the Balsic Codle of Fair Com~petition for th~e IiFahricatedt Me~tal
Products Mianufacturingr and Mettal Finishing andl Metal Coating
Industry as approved by thte Presidlent on the 2ndl day of Novembellcr,
~SECTIlON 9. Thne term Bureau means Socklet. Screw Prodct~l~s
Bureau, or its successor.
SECTIOIN 40. The term Supplementatry Code Authority ", as usedc
herein, is decfinedc to maean the ag,(ency w-hich is to administer this
Supplementary Code as hereinn after provided.
SECTION 11. T'he term Execlt~ive Committee means Exe(utive
Committee of the SCocket. Screw Products B3ureau.
SCECTION 12. The term "' Impartial A~gency means such impartial
and confidential agency as the Supplementary Code Authority may
ARTICE IIT-ErrMPLOYMENT PoRto\?Cs
This Industry is a division of the F~abrientedl MIetal Products Mian-
ufactuiring and Mretal F'inishing andi Mctal Coating Industry and the
wnge, hour and labor prlovisionsl in Article III of its Basic Codie as
app~rOved by the Presid~ent, Novemb~er 2, 19:',3, including Section. 1
of salid Article III by which the provisions of Subshections (1), (2)
and (3) of *Section '7 (az) of Title I: of the Act are mnade co-ndlitions
of this Code, are specifically incorporated~ herein and maderl a parlt
hereof as the wrage. hour and labor provisions of this Sup~ple meltntar
ARTIrcLE I7 ROANIZATTON, ADMIINIS~TRA\TION ANTD DUTIEs a
SCEcTION I, D~uring the p~eriod not to exceed sixty (60) dlays fol-
lowping the effective tlate, the Execu-tive Commnittee shall co-nstitulte
a Temipor~ary Supplemientary Codle Aulthor~ity who shall have all the
power~ andc duties of the SupplemllenttaryCd uhriyhri
forth until the Sjupp~l ementlrly Cocdet Auth ority is elected Therei e
shall be co~nstitultedl within the sixty (60)) day perma~- a Suplplementary"37
Code Anthority~ consisting of five (5) mlembers~ to bte elected- by the
members of the~ Indu~try, as hereinafter provided, at a meeting
called by the Temporanry Sulppleme~ntay Ctod Authority, upo~n
twenty (20) days' notice sent by registel~red mail to all members of
thep Industry whose names can be asrcr~tainedl after diliaent search,
wfho may vote either in pe rso n, by proxyc or by letter Calot. The
members of the Supplleme"ntry Gode Anthor~ity first electerl blall
serve until the followingg annual meetings of the Buireau and- until
their successors are elected, andl thereafter, members of thle Surp-
plemientary Code Authority shall be elected at each annual meeting
" See paragraph 2 ofC order approving tble Code.
of the Industry to be held at the time anld place of the annual meet-
ing of the Bureau, to serve until their successors are elected. Notice
of each election shall be sent in the manner above provided. The
membership of the Supplemnentaryr Code Authority- shall be made up
(a) Four (4) members who shall be members of the Industry
elected by a majority vote of the members of the Bureau present
in person or represented by proxy or by letter ballot, each member
of the Bureau to have one vote;
(b) One (1) member of the Industry who is not a member of the
Bureau elected by a majority of all votes cast by the members of
the Industry who are non-members of the Bureau, present in person
or represented. by proxy or by letter ballot, each such member of
the I~ndustry to have one vote;
(c) A vacancy in the membership of the Supplementaryr Code
Authority shall be filled by majority vote of the remaining members
of the Spplementalry Code Authority providing such vacancy is
filled by a member of the Industry drawn from the same group as
was represen~ltedc~ by the vacating member.
(d) In addition to the above, thne Administrator may appoint
one (1) representative without vote and without expense to thre
Industry, to serve withl said Supplementary Code Authority in the
Administration of this Supplementary Code. Said representative
shall be given proper and reasonable notice of all meetings of the
Supplementary Code Authority.
SjECTION 2. Any Association/~Institute and/or Bureau directly or
indirectly participating in thle selection or activities of the Supple-
mnentary Code AQuthnority shall (1)b impose no inequitable restric-
tions on membership, and (2) submit to the Administrator true
copies of its Articles of Association, By-Laws, Regulation~s and any
amendments when made thereto, together with, such other informa-
tion1 as to membership, organization, and activities as the ~Adminis-
trator may deem necessary to effectuate the purposes of the Act.
SE1CTION 3. In order that the Supplementary Code A-uthority shall,
at all times, be truly representative of the IndustryI and in. other
resplects comply with the provisions of the Act;, the Adlministrator
may prescribe such Hea~rings as he may dee~m proper; and, there-
after, if he shall find that the Supplemrentary Code AuthorityT is not
truly representative or does not in other respects comply wirth the
provisions of the ASct, may remove any member thereof and may
require an appropriate modification or modifications in the method
of se~lectio~n of members of the Supplemnentary Code AIuthority.
SECTION 4. The SupplementaryV Code Authnority shall obtain. from~
members of the Industry such information and reports as are re-
quired for the administration of the Supplementary Clode. In addii-
tion to information required to be submitted to the Supplementary
Code Authority-, mnllembes of t-he industry subject to this Supplemen-
ta~ry Cod~e shall furnish such statistical information as the Admninis-
trator may deem nlec~en y for the purposes recit~ed in Section 3 (a)
of thne AL1ct to such Fc~edeal and State Ag~encies as he may designate;
providecd that nothing in this Supplementary Code shall relieve any
member~l of the Inldust ry of any exist ing o~blig t ionls to :furnish reports
to any Governmnent Agbrency. N~o individual report shall be disclosed
to any other member of the Industry or any other party except. to
such other Governentl Agencies as may be dlare~de b thle
Ad m inist rator.
SECTION 5. The Suppylemlentary Code Authority as such agecyrc~
shall also from time to time furnishl to the Bas~ic Code Authority,
designated in said Basic Codel, such ilfll'nformtionl as ma1Zy be? rCqulir'ed
to be~ furniished under the termiis of said B~asic Clode.
SECTIOIN G. Anly or all iniformaution fur~nishedd to the Supplementary
Code Author~ityJ by any member of the TIndustry shall be, purlrunnt to
th~e pr~ovisions of this SupplemnentaryT Code, subject to v-erification by
an examination of the pertinent or necessary books, accounts and
records of such member by an impartial agecncy agrleedl upon by the
Suppleenmtar Crod ~A~uthority- and the members of the InustryS in
question, or, filing such agreement, by an imipartial a ent desig-
nated by the Administrator. Such exa nlnat ion shall be made onlly
to the extent permitted byr the Act and such rules and regurlaltic-nsl as
may be prescribed by the Administraltor. Thie cost of each such
exam~ination shall be borne by the Supplemnentaryy Code Authocrity.
SECTON 7. It being found necessary mr order to suppor~"'t the Ad-
ministration of this Supp~lementrary Code and to maintumr the stand-
ards of fair comIpetition established heretunder alnd to efFecituate the
policy of t~he Act, the Supplemnentary Code Authoritiy is author,1ized:
(a) To inlcur such. reasonable obligations as are necessary and
proper for the foregoing purposes and to mleet such obligatiojns out
of funds which may be raisedl as hlereinnfter p~rovided andl which
shall be held in trust for the purposes of the Supplemenlt~ary Code.
(b) To submit to the Admnmistrator for his approval, sulbject to
such notice and opportunity to be heard as he may dleeml necessary,
I(1) an itemize~d budget of its estimated expenses for the foregoling
purposes, and (2) an equitable blasis upon which the funds necessary
to support such budget shall bi contriblt~ed~ by all members of the
(c) After such budget and ba~sis of contribution have been ap>-
provedt by the Admlinistrator, to determine and secure equitable
contributions as above set forth by all members of t-he! IndstryT,
andl to that endr, if necessary, to inlstitute legal pr~oceedlings therefor
in its own name. Each mem~lber of ~the Ifndustryr shall pay hris or its
equitable contribution to the expenses of the! maintenance of the
Supplementary Code Authlority as hereinaibove provided, and sub-
ject to rules and regulations pertaining thereto issued by the Adimin-
Only members of the Industr complying with thle Supp~lem~enturyr
Codle and contributing to the expenses of its adlminisjtrationl as here-
inabove provided unless duly exemptedl from making such conitri-
bution, shall be entitled to participate in the selection of the members
of the Supplementary Codte Ar~utihority or to receive th `benefits of
any of its voluntary activities or to make use of any emlblemn or
insignia of the National Recovery Administration.
The Supplementary Code Autihority shall neither incur nor pay
any obligation substantially in exes of th amount thlereof as esti-
mated in its approved budget, and shall in no event exceed the total
amount contained in thle approved budget, except upon approval of
the A~dministrator; and no subsequent budget shall contain any
deficiency item for expenditures in excess of prior budget estimates
except those which the Admllinistrator shall have so approved.
SECTION 8. Nothing contained in this Supplementary Code shall
be d~eemedl to consltitute: the members of the Supplementary Code
Authority partners for any purpose whatsoever. Nor shall an~y
member of t~he Supplemlentary Code _Authlority be liable in any mlan-
ner to anyone for any act of any other member, officer, agent or
employee of the Supplementar;y Code Authority. Nor shall any
member of the Supplementadry Code Auth~ority exercising reason-
able diligence in the conduct of his duties hereunder, be liable to
anyone for any action or omission to act under this Su~ppl"emetary
Code, except for his own wilful malfeasance or non-feasance.
SECTION 9. If any member of the Industry as definedl herein is a
member of any other IBndustry, the provisions of this Supplementary
Code shl~all apply to and effect only that part of his business which
is included in the Industry.
SECTIONh 10. T~he SupplementaLry Code Authority shall without
an~y limitaltions on. the foregoing have the following further general
powersl and utlii.- subject to such rules and regulations as the
Adlministrator may prescribe:
(a) To insure the execution of the provisions of this Supple-
mentary Code and provide for the compliance of the Industry with
t~he provisions of the Act;
(b;) To adopt by-laws and rules and regulations for its procedure
and for the administration of the Supplementary Code;
(c) To use such trade associations and other agencies as it deems
proper for the carrying out of any o-f its activities provided for
herein, provided that nothing herein shall relieve the Supplementary
Code Authority of its duties or responsibilities under this Supple-
mentary Code and that such trade associations and agencies shall at
all times be subject to and comply with the provisions hereof ;
(d) To mlake~ recommendations to the Adminisstrator for the co-
ordination of the administration of this Supplementary Code with
such other codes, if any, as may be related to the I~ndustry;
(e) Tro cooperate with the Adminisjtrator in regulating the use of
any N.R.A. insigniaz solely by those members of the Inldustry who
are complying with this Sjupplementary Code;
(f) T'o recommend, to the Ahdministrator anly action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Industry in their relations with each
other or with other industries; measures for industrial planning,
and stabilization of employment; and including modifications of
this Coode which shall become effective as part hereof upon approval
by the A~dministrator after such notice and hearing as he mlay
SECTIONa 11. I~f the Administrator believes that any action of the
Supplementary Code Authorityr 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
Supplem~entary Code Authority or agency regarding thle matter com-
plained of mnay be taken if approved by the Administrator but shall
not be. taken if disapproved by the Administrator writ.hin thirty days
of notice to himn of intention to proceed with, sulch action.
SECTION 1C). Every) employer shlall provide for the safety and
health of his empllloyees during the hours and at thec places of their
employment. Standards for safety and health shall be submiittedl
byth upleetayCode. Aulthlority to the ,Adminisctrato~r within
bythre (3) lmonthsafter the effective date of this Supplemecntarly
a T'IICLE V-OP]EN ]PRICE
rSECTION 1. Eachf member3~1 of th~e Industry shall file with a co~n-
fidential and disinterested agent of the Supplemlentalry Code Au-
thority or, if none, then with such an agent. desibgnted by the
Administrator, identified lists of any or all of hiis prices, dscountlls,,
rebates, allowances, and all other terms or conditions of sale, h!ere-
inafter in this article ref~erredl to as price terms ", which lists shall
completely and accurately conform to and represent the individual
pricmng practices of said member. Such lists shall contain the price
erms for any or all such standard prooducts of the Industry as are
sold or offered for sale by said member and for such non-st.andrtld
products of said member as shall be designated byp the Supplementa ry
Codei Athor itdy. Said price terms shall in the first instance be filed
witin en 10)day afer he ateofapproval of this provision
of such price terms. Price terms and revised price terms shall be-
Come effective immediately upon receipt thereof by said agent.
Immediately upon receipt thereof, said agent shall by telegram nph or
other equally prompt means notify said member of the time of suchn
receipt. Such lists and revisions, together with t~he effective time
thereof, shall upon receipt be immediately and simultaneously dis-
tributed to all members of the Indu~stry an~d to all of their customers
w~ho have applied therefore and have offered to defray the cost actu-
ally incurred by the Supplementary Code A~uthority mn the preparn-
tion and distribution thereof and be available~ for inspection by any
of their customers at fthe office of such agent. Said lists or revisions
or any part thereof shall not be made available to any person until
released to all members of the Industry and their customers, as afore-
said; provided, that prices filed in the first instance shall not be
released until the expiration of the aforesaid ten (10) day period
after the approval of this Supplementary Code. The Supplementary
Code Authorit~y shall maintain a permanent file of all price terms
fledl as herein provided, and shall not destroy any part of such
records except upon written consent of the .Admimlst~rat~or. Upon
request the Supplementary Code Authority shal furnish to the
Administrator or any duly designated agent, of the Administrator
copies of any ;such lists or revisions of price terms.
b'ECTION 2. hen any member of the Ilndustry has filed any
revision, such member shall not file a higher price within forty-eight
SECTION 8. No member of the Industry shall sell or offer to sell
any products of the Industry, for which price terms have been
filed pursuant to the provisions of this article, except in, accordance
with such price terms.
SECTION 4. No member of the Industry shall enter into any agree-}
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attemp~lt to cause any member of the Industry
to change his price terms by the use of intimidation, coercion, or any
other influnce inconsistnt~lt with the maintenance of the free and
open market which it is the p-urpose of this article to create.
SECTION 5. No provision of this Supplemrentary Code relating
to prices or terms of selling, shipping omretnshlapl
to export trade or sales or shipments for exporkt tgrad wihin th
meaning of the term export trade as it is used in the Export]
Trade Act, adopted April 10, 1918.
AnTICia VI--COSTS AND PRICE CUTTNG
SECTION 1~. The standards of fair competition for the Industry withl
reference to pricing practices are declared to be as follows: I
(a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the Industry or of
any other Industry or the customers of either' may at any time com-
plain to the Supplementary Code Authority that any filed price
constitutes unfair competition as destructive price cutting, imlperil-
ing small enterprise or tending toward monopoly or the im~pairment
of Supplementary Code wages and working conditions. TIhe Sup-i
elementary Code Aluthor-ity shall within five (5) days afford a
opportunity to the member filing the price to answer such complaint
and shall within fourteen (14) days make a ruling or adjustment
thereon. If such. ruling is not concurred in by either party to the'
complaint, all papers shall be referred to the Research and Planning
Division of N.R.A. which shall render a report and recomm~enda-
tion th~ereon to the Administrator.
(b) WNhen no declared emergency exists as to any given product,'
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) W~hen an emergency exists as to any given product, sale below
the stated minimum price of such product, In violation of Section B
hereof, is forbidden.
SECTIoN 2. Emiergentcy Provisions.-(a) If the Administrator,
after investigation shall at any time find both (1) that an emergency
has arisen within the Industry adversely affecting small enterprises
or wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fied product within, the Industry for a limitedl period is necessary to
mitigate the conditions constituting such emergency and to effectuazte
the purposes of the Act, the Suppleme~ntary Codle Authority may
cause an impartial agency to investigate costs and to re~conulnend to
the Administrator a determination. of the stated minimum price of
the product affected by the emlergency- and thereupon the Admlinis-
trator may proceed to determine such stated minimum plrice~.
(b) When the Administrator shall have delrtermincd such stated
m~inirmum price for a specified product for a staltdc~ period, which
price shall be reasonably calculated to mitigate the conditions of
such emerg~ency and to effectulnte thre purposes of the National lndus-
tria~l Recovecry Act, hie shall publish suchl price. Therenfter, during
such stated per~iod. no mlemberl of t~he Indu~stry shall sell su~chl sp~eci-
fied products at a net realized price below said stated mIinimuim price
and any such sale shall be de~leme destructive price cutting. From
tile. to time, thle Suppletmentary Code Aciuthority mnay :recommenlnd
renew~ or reonsider'atiion or thie Admlinistrantor may" cause anly
determinations hereund3er to be reviewed or recocnsidlered andi
appropriate action taken.
ARTICLE VII-Urr TTFI JRA~DE PRACTICES
For all p~urposes of this Supplementar Code~ the following de-
scribedl Acts shall con~stitute unfair practices. Such unfair practice
shall be deemed to be unfair mneth~ods of competition in commerclle
within the meaning of the Federa~l Trade Comml~ission1 Act as amend11-
ed, and any member of the Industr~y who shall directly or indlirtc~tlyr
through~ any offier, employee, agent or representative knowingly
use or emlploy any of such unfair practices shall be deemed guilty of
a. violation of this Supplementaryv Code.
A. The provisions of Articlee V', paragraphs B3 to G, inclusive, of
the Basic C~ode are a part of this Suppletmentaryy Co~e to the same
extent as if here repeated and set forth at length.
B3. Using or substituting any material suplerior in quality to that
specified by the purchaser of' any product, for the purpose of influ-
enemng purchase or future purchase.
~C. Cancelling in whole or in part, or permitting the cancellartio-n
in whole or in part, of any contract of sale of anyiS prloduct, except
for a fair consideration.
D. Inducing or attempting to induce the br~each of anyl~ provision
of a contract to which a member of the Indu~stry is a party. This
clause shall nlot be construed to apply to employment contra~cts.
E._ Offeringr or griving to ainy pulrchaser of any product any gauar-
anty or protection in any form, against decline after the date <\f ship-
ment in thie market price of such product.
F. Soliciting by any mlemlber of the Industzry the pooling of orders
froml several buyers man manner t~o grive theI buyePrs adva.nnctag of
more favorable price or terms than those t.o wh'rich~ the buyers world
be entitled individually; provided, how~ever, that p~ooled buying~ is
not prohibited where the seller may have a measurable compensating
G. Consignningi merchandise for any reason whatsoever, except to
a wholly own~ied or conrtrolled subsidiary, or to a direct rep~resenta-
tive having a stock subject to control of the manufacturer for pric-
ing, invoicing and termss, or exccept under circumstances to be de-
fined by the Supplementa~ry Code Authority and app~roved by the
Admninistrator where peculiar circumstances in thle Ind~ustry require
H.Making contracts requiiringr delivery of specified quantity ~or
quantities in specified t~ime, if demanded by buy~er, but not. requiring
the buyer to accept such quantity or quantities within thre specified
I. Making contracts at a specified price for an unspecified quan-
tity for delivery as demanded byr the buyer during the period unless
the contract is for a fixed percentage of th~e total consumption re-
quirements of the purchaser of the particular product; or making
any such unspecified quantity contract above described except on a
standatrdl form or forms approved by the Supplementary Code Au-
thority and the As~n~inist ratorl; or failing to file with the Secretary
a copy of each and every different forml of contract entered into by
a member of the Industry within five days after entering into a con-
tract in such. form.
J. Matkingr contracts for periods in excess of three months (all
contracts to expire not later than the last days of M/arch, June,
September or December) or quoting on or matkinga any quarterly con-
tract more than thirty (30) days prior to thle first day of the calen-
dar quarter covered b y the contract, or shipp ing pursuant to anly
contract more than fifteen (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 removal on
the par-t of either buyer or seller; provided, however, that thne fore-
going provisions of this paragraph J shall not apply to a bona fide
order for a specifiedl quantity of specified types, sizes and kinds of
products of the Industry for delivery at specified dates not extending
beyond four months from receipt of order, at a specified price.
KE. Offering any article by price or otherwise in a manner to in-
fluence the purchase of another article.
L. Continuing to employ any salesman, agent or employee who
shall give any or all of his conunission to ainy purchaser without
the knowvledge of his employer.
M. Making or continuing any arrangement with a jobber, dealer
or syndicate buyer whereby such jobber, dealer or syndicate buyer
acts both as agent and as jobber, dealer or syndicate buyer in a~
specific transaction and thereby receives both the jobber's, dealer's
or syndicate buyer's discount and the agent's commission on the same
transaction, or entering into any kind of any exclusive territory
arrangement with a jobber, dealer, or syndicate buyer, provided,
that this clause shall not apply in any way to any selling arrange-
ments wherein a national distributor contracts to sell the entire
output of a particular manufacturer as such manufacturer's agent.
No provision of this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to eliminate, op-
press or discriminate against small enterprises.
SECTION 1. This Sup/plementary Codle and all the provisions
thereof are expressly made subject to the right of the P'resident, in
accordance with provisions of Subsection, (b) of Section 10 of the
Act, from time to time to cancel or modify any order, approval,
license, rule or regulation issued under said. A~ct.
SECTION 2. Thlis SuppI~l~lfl nwatry Code, except as to provisions re-
quired by the Act, may be modiifietd on the basis of experience or
c anges in circumstances, such, modifications to be based upon ap-
plication to the Administrator and such Notice and Hearing as he
shall specity and to become effective on approval by the President.
AnnICL X Pman INCTREALSES
WVherecas the policy of the Act to increase real ~purchaIsing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meltet individual costs
should be delayed, but w~hen madle, such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
AnncLu X -FIEFFECTIVE IDATE
This Supplementary Code shall become effective at 12:01 o'clock
A.Mi. Eastern Standard Time of th? -teinth day after it is approvTed by
Approved Code No. &-Supplement No. 49.
UNIVERSITY OF FLORIDA
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