Supplementary code of fair competition for the file manufacturing industry (a division of the fabricated metal products ...


Material Information

Supplementary code of fair competition for the file manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on October 9, 1934
Portion of title:
File manufacturing industry
Physical Description:
14 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Files and rasps   ( lcsh )
Hardware industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1149-1-06."
General Note:
"Approved Code No. 84--Supplement No. 54."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952764
oclc - 63655357
System ID:

Full Text


ghor ale by the Superintenddentof Doecuments Washington, D. C. Price 5 centsi

Approved Code No. 84--Sulpplement No. 54

Registry No. 1149--1--06







(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)




This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offcesl of the Bureau of For~eign
and Domestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ahla.: 257 Federal Builaing.
Boston, Mass.: 1801 Customhouse.
Buffalo, N'. Y.: Chamber of Commerce Building.
Chanrleston, 8. C.; Chamber of Commerce Building.
Chicago, Ill.: Buite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detro~it, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ans~as City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mlemphis, Tenn.: 229 Fedferal1 Building.
Mluiennpo~lis, MIinn.: 213 Federal Building.
New Orleans. Ln.: Room 225-A, Customhouse.
New Yocrk. N. Y.: 7341 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadlelphia. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Porla~lnd, Oreg.: 215 New Post Offce Building.
St. Louis. M~o.: 506, Olive Street.
Ban Franelsco, Onlif.: 310 Customhouse.
Seattle. Wash.: 809 Federal Offlee Building.

Approved Code No. 84--Supplement No. 54



As Approved on October 9, 1934



An application having beenl duly made pursuant to and in full
compliance with the provisions of Tfitle I of the Nationlal Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section 1 of Article VI of the Basic Code for the Fab-
rilcated Mfetal Products Mlanufacturing and Metal FEiinishing and
Metal Coating Industry,r apprnoved Novembehr 2,~ 1933, for appr~oval2 of
a S~upplemeentary C'ode of Fair Competitionr for the File M~anu~fac-
t~uring Industry, and hearing having been duly held thereton; and
the annexed rep~or~t on said Supplemlentairy Code, containing find-
ings wit.h respect ther~eto, having beenl made and directed to the
NOW, THEREFORE, on behalf of the President of. the Unflitedr
SCtates, the National Industrial Recovery- Board, pur~lsuant to nuthr~cl-
ity vested in it by Execuitive Orders of the President, including
Executiv-e Order No. 6859, and otherwise, does here~by inlcorpora~te
by reference said annexed r~epor~t and does find that said Supple-
ne~ntary Code complies in all respects with the pertinent pr~ovisio~ns
and wFill promote the policy andr purposes of said Title of said Act;
and does thereby order that said Sjupplementary Code of Fair Com-
petition be and it is hereby approvedl; provided, however, that the
provisions of Article VI be and they are hereby stayed pending fur-
ther Order of such Board; and3 provided further that, the applicant
shall amend its Articles of Associat~ion and By-laws to the satis-
faction of the. National Industrial Recovery Board within thirty
(30) days after the effective date of this SupplementaryT Code.
By G. A. LmeNC, Ad~mink~~'l'trati O~f)Zer.
Approval recomm~ended::
Acting Divi'sio~n Adminristrator.
WV~Zurwarox, D. C..
October 9, 1934
D010432-1244--27-34 t


The Wh~~ite House.
SIR: This is a report on the Supplementary Code of Fair Com-
petition for the File M\anufacturing Industry, a Division of the
Fabricated Metal1 Products M9anufacturing and Metal Finishing and
Me~Ttal Coating Industry, the heanringr having been conducted thereon
in Washington, D. C., April 5, 1934, in accordance with the provisions
of Title I of the National Industrial Recovery Act.

The File Mlanufacturing Industry, being truly representative of
this Division of the Fabricated Mvetal Products Malrnufacturing and
Metal Finishing and M~etal Coating Industry, has elected to avail
itself of the option of submitting a Supplementary Code of Fair
Competition. as providedl for in Section 1 of Article VI of the Basic
Code, for the Fabricated M~etal Products Mianufacturing and Metal
Finishinig and M~etal Coating Industry, approved by you on the
second dlay of November, 1933.
Article I sttes. the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Sup-
plementary Code.
Article III: This Industry is a Division of the Fabricated Mietal
Products Ma~nufacturing and M~etal Finishing and Metal Coating
Industry and thle labor provisions of its Basic Code as approved
November 2, 1933, are the labor provisions of this Supplementary
Article IVT establishes a Supplemientary Code Authority consisting
of fivle (5) members, to be elected by the members of the Industry
at a meeting called by the Temporary Supplementary Code Au-
thority, and guives the Administrator the authority to appoint one
additional member without vote and provides machinery for obtain-
ing statistics and the administration of the Supplementary Code.
Article V provides for formulation of cost finding and accoulnt~ing
methods capable of use by all members of the Industry. When
approved by the Administrator, such methods shall be utilized by
the Indlustry to t~he extent found practicable.
Article VI prohibits selling below cost as determined in accord-
ance w~ith Article V, except to meet a competitor's price whose costs
are lower under Article V; and except that dropped lines and sec-
onds may be sold without restriction; and except that after notice

to the Supplementary Code Authority, products of the Industry may
be sold below cost to meet competition on products of equivalent
design, character, quality or specification manufactured outside the
United States.
Article VII provides for the filing of prices with a confidential
and disinterested agent of the Supplementary Code Authority and
also provides for the filing of revised prices.
Article VIII sets forth the unfair trade practices of this Supple-
mentary Code, observance of which is designed to mitigate unfair
competition in thiis Division of the Industry.
Article IX defines the term export to include shipments to
countries other than continental United States, and states that pro-
visions of this Supplementary Code concerning pricing and marklet-
ing do not apply to export sales.
Article XY provides for modifications in accordiance with subsec-
tion (b) of Section 10 of the; Act, and also for modifications on the
basis of experience.
Article XYI provides against monopolistic practices and the
oppression of, or discrimination against, small enterprises.
Article XII recognizes that price increases be hmit~ed to actual
additional increases in the seller's costs.
Article XIII gives the effective date and duration of this Sup-
plementarIy Clode.

The AsFsistant Deputy Admlinistrator in his final report to us on
said Supplementary Code having foundl as herein set forth and on
the basis of all the proceedings in this matter:
WVe fjnd that:
(a) Said Supplemerntary Code is well designed to promote the
policies and purposes of T;tle I of the National Industrial Recovery
Act, including removal of obstructions to the free flowr of interstate
and foreign commerce which tend to diminish the amount thereof
and w~ill pr~ovide for th~e general w\elfarea by promoting the organi-
zation of indlustry fo~r t~he purpose of cooperative action among the
trade groups, by inducing and maintainingr united action of labor
and manage~ment under adequate governmlental sanction and super-
viszon, by- chiminatingr unfair comipetitivTe practi~ces, by piromoting~
the fullest possible utilization of the present productive enpneity of
industries, by avoiding undue r~estriction of production (except as
may be temlporar~ily required), byr inlcretasing the consumllption of
industrial andt agrricultura~l produciits through* puirchasing
power, by reduicing andl relieving unemploymennt, by Improving
standards of Inbor, andl by otherwise rehabilitation industry-.
(b) Saidl Industry normally employs not more tIhan 50,000 em-
ployees: anid is not classified by mne as a manjor~ industryy.
(c) The Suipplementary Codel as app~rove-d complies In all respects
withl the pertlinent provisions of said Title of said Act, includingp
without limitation Subsection (a) of Section 3, Subsection (a) o
Section 7, and Subsiection (b) of Section 10 thereof ; and that the
association is an industrial association truly representative of thle
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.

(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
Supplementary Code.
For these reasons, therefore, The National Industrial Recovery
Board approves this Supplemnentary Code.
Respect tf ully,
OCTOER 134.G. A. LrNen, Admninistrative Of)2icerT.



Aanac~rr I--PURPOSEs

To effectuate the policies of T1Citle I of the National Industrial
Recovery Arct, the following provisions are established as a Supple-
Inentary Code of Fair Competitionl for the File Mlanufacturing
Industry, pursuant to Article VI of the B~asic Code of Fair Competi-
tion for the Fabricated M~etal Products Ma~nufactulring and Metal
Finishing and Metal Coatings Industry approved by the Precsident of
the United States on the 2nd day of November, 1933, and the pro-
vision olf this Supplemnentary Code shall be the standards of ]Fair
Competition for such. Industry and shall be binding uplon every
memberl thereof.

Th~e term "L File! Manu featuring I~ndustry ", hereafter referred to as
the Indulstry, is defined to m~ean the manufacture for sale of all tyTpes
and shapes of ~files, including Swiss Pattern files, rasps, rifflers,
scrapers, file brushes and hand~les, excepting manicure files, rotary
files and bu~rs.
Thle term '' employee "' as used her~eini includes anyone engaged in
the Industry in any' c~apacitr rec~eiving cor.llpensation for his serv-
ices, irrespecctive of the nature or method of payment of su~ch comn-
The terml employer as used herein includes anySone byr whomn
any such emplloyee is compensatedl or employed.
Th~e terml member of the. Indust~ry as used herein includes, but
without. limnitation, anly indiv'idual, partnecrslup, association, corpora-
tion or other for~m of enlterprise enngaged in, the Industry either as an
employer or on h~is or its owrn behalf.
The terms President "', "'Act'' ". "Administrator as used herein
shall mean respectively the P~resiident of the United States, Title I
of thle Natioinal Industrial Re~coveryv Act. and the Administrator for
Industrial R~ecovery.
The term "L Basic Codie ", as used herein, is defined to mean the
Basic Code of Fair Competition for the F'abricated M~etal Products
Manufacturing and MIetal Finishing and M~etal Coating Industry, as
approved by the: President on the 2ndi day of November, 1933.
The term Supplementary Code Aiuthority as used herein, is
defined to mean the agency to administer the Supplementary Code.
The term Supplementary Code Committee," as used herein is
defined to mean the Executive Committee of the Association.

The term "ALssociation as used herein is defined to mean the File
Manufacturers Association of the United States, or its successor.
The term Secretary as used herein, is defined to mean the
Secretary of the Supplementary Code Aut~hority.

This Industry is a division of the Fabricated Metal Products Man-
ufacturing and Mletal Finishing and Metal Coating Industry, and
without limitation the wage, hour and labor provisions in Article
III of its Basic. Code: as approved by the President November 2nd,
1933, including Section I of said Article. III, by which the provisions
of subsection 1, 2 and 3 of Section 7 (a) of Title I of the ACct are
madfe conditions of this Code, are specifically incorporated herein
and made part hereof as the wage, hour, and labor provisions of this
Supplementary Code.

SECTION 1. During the period not to exceed sixty (60) days fol-
lowing the effective date of this Supplementary Code, thle Supple-
mentary Code Committee of the I[ndustry shall constitute a Tem-
porary Sulpplementary Coode Authority until the Supplementary
C~ode Authority is elected. There shall be constituted within the
sixty-day~ period a Supplementary Code Authority consisting of 5
members to be elected byr the members of the Industry, at a meeting
called by the Temporary:S Supplementary Code Authority, upon ten
days' notice sent. by registered mail to all members of this Industry
whBose names may be ascertained after diligent search, who may vote
either in person or by proxy. Thle members of the Supplemzenar
Code Authority first elected shall serve until the following Annl
Meeting of the Aissociation, and thereafter, members of the Supple-
mecntary Codec Authority shall be elected- by the members of the In-
dustry at a mleetinga of th~e Industry to be held at the time and place
of eacb Agnnual MIeeting of the Association to serve until the follow-
ing Annual Mieetingg.
The mlember~s of the Supplemlentary Code Authority shall be
elected in thle following manner:
(a) One (1) miember of the Industry who is not a member of the
Association elected by majority vote of the non-members of the As-
sociat~ion, present in person or represented by proxy, each member
to have one vote;
(b) Two (2) members who shall be members of the Industry
electd by a majority vote of the members of the Association present
in person or represented by proxy, each member to have one vote;
(c) Tw~o (2) members by a 51%0 vote of members of the AssocitL-
tion present in person or byv proxy weighted on the basis of one (1)
vote for $25i.00 of Ann~ual dues; provided, however, that no one
mlemlbership may cast, more than (25%0) of the total number of votes
a authorized.
A vacancy in the membership of the Supplementary Code Author-
ity shall be filled by majority vote of the remaining members of the
Supplementary Code Authority. Provided, however, that the mem-

ber of this Supplementary Code Authority who is chosen to fill such
vacancy shall be selected from the same class of membership in which
the vacancy occurred.
In addition thereto the Administrator may pon ebro
the Supplementary Code Aut~horit~y who sha~llp't be wihout votean
shall serve without expense to thle Industry. The representative
who may be appointed by the Administrator shall be given reason-
able notice of, and may sit at all meetings of the Supp~lementar~y
Code Authority.
S~ECTIONh 2. Each Trade Association directly or indirectly par~t.ici-
pating in thle selection or activities of the Supplementary Code Au-
thority shall (1) impose no inequitable restrictions on admission
to membership, and (2) shall use due diligence inl submitting to the
Administrator true copies of its Articles of Association, By-Laws,
Regulations and any amend~nen nts whlen made thereto, toget~her with.
such other information as to membership, organization, aind activi-
ties as the Adlministrantor may deemn necessary to eff'ectua~te the
purposes of the Act.
SeCrlow 3. In order that the Supplementaryr Code Author~ity shall,
at all times, be truly representative of the Indlust~y~ and in. other
respects comply with the prov-isions of the Act, the Administrator
may prescribe. such hearings as he may deem pr~oper; and, t~herea~fter,
if he shall find t~hat th~e Supplementary Code Authority is not truly
representative or does not in other respects comply with the prov-i-
sions of t-he Act, may require an appropriate modification of the
Supplemental ry Code Authority.
YECTION 4. It being found nlecessary~ in order to support t~he Ad-
ministrat~ion of this Supplementary Code and to maintain the stand-
ards of Fair Competition established hereundter and to e~ffectuate the
policy of the Act the Supplementary Code Authority is authorized :-
(a) To incur suchI reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds whlich mnay be raised as hereinafter provided. and which
shall be held in trust for thle pur'poses of th~e Supplementary Code;
(b) To submit to th~e Admllinis;tra~tor for his approval, subject to
such notice-andl opportunity to be heardt as he may deem necesar~y~:--
1. An1 itemized budget of its estimated expenses for the foregoinig
purposes, and
2. An equitable basis uplon which th~e funds necessary to support
sulch budget shall be co~ntribut~ed by members of the Industry.
(c) After such budget. and basis; of contribution have been ap-
proved by the Admninist~rator, to determine and obtain equitable con-
tribution as above set fourth by all mlembersa of the Industry, and to
that endt, f ner~cessry, to inst.itulte leganl proceedings therefore in its
own1 name.
Each member of the Industry shall pay his or its equitable cnon-
tribution to the expenses of the maintenance of the Supplemnentary
Code Authorit~y, determined as hereinabove provided, and subject
to rules~ and regulations pertaining thereto issed by the Admin-
istrator. Only members of the Industry complying with the Sup-
plementa ry Code and contributing to the expenses of its Administra-
ton as hereinabove provided, unless duly exempted from making
such contributions, shall be entitled to participate in the selection

of members of the Supplementary Code Authority or to receive the
benefits of any of its voluntary activities or to make use of any
emblem or inslgnia of the National Recovery Administration.
The Code Author~ity shall neither incur nor pay any obligation
substantially in excess of the amount thereof as estimated in its
approved budget, and shall in no event exceed the total amount con-
tained~ in then approved budget except upo~n approval of t~he Admin-
istrator; and no subsequent budget shall contain any deficiency item
for expenditures in excess of prior budget estimates except those
which the Administrator shall have so approved.
SwrrIoN 5. Nothing contained in this Sjupplementary Code shall
constitute the members of the Supplemnentary Code Au~thority part-
ners for any purpose. Nor shall any member of the Supplementary
Code Authlority be liable in any manner to anyone for any act of
any other member, officer agent or employf3ee of the Supplementary
Code Authority, nor shalj any member ofthe Supplementary Code
Authoit, hex~uercisin reasonable diligaence in the conduct of his
dutes erundr, e iable to anyone for any action or omission to
act under this Supplementary Code, except for his own wilful
malfeasance or nonfeasance.
SECTION G. The Supplementary Code Authority shall also from
timie to time furnish to the Basic Code Authority, designated in said
Basic Code, such information as miay be required to be furnished
under the terms of said B3asic Ciode.
SECTION 7. If the administrator believes that any action of the
Supplementary Code Authority, or any agency thereof, is unfair
or unjust or contrary to public interest, the Administrator may re-
quire 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-
Blained of, may be taken if approved by the Admninlstrator but shall
not be taken if disapprov-ed by the Administrator within 30 days'
notice to him of intention to proceed with such action.

SECTION 8. Subject to such rules and regulations as may be issued
by the Admijnistrator, the Supplementary Code Authority shall have
the following powers and duties, in addition to those authorized by
other provisions of this Supplemientary Code.
(a) To insure the execution of the provisions of this Supplemen-
tary Code and to provide for the comiplianice of the Industry with
the provisions of the Act..
(b) To adopt By-Law~s and Rules and Regulations for its pro-
cedure in the administration of this Suipplementary Code.
(c) To obtain from members of the Industry suchi information
and reports as are required for the administration of the Supple-
mentary Code. In addition to information requiired to be sub-
mitted to the Supplementary Code Authorityv, members of the In-
dustry subject to this Supplemnentar~y Code shall furnish such sta-
tistical information as the Admninistrator may deemn necessary for
the purposes recited in Section 3 (a) of the Act to such Federal and
State Agencies as he may designate; providers that. nothing in this

Bupplementary Code shall relieve any member o fthe Industry of
any existing obligation to furnish reports to any government agency.
No individual report shall be disclosed, without consent in writing
of the member making the report, to any other member of the In-
dustry or to any one other than t~he Administrator or his duly au-
thorized representative.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall reliever the Supplemnenltary
Code Authority of its duties and responsibilities under this Sulpple-
mentary Code and that such trade associations and agencies shall
at all times be subject to and comply with the provisions hereof.
(e) To make reconunendations t~o the Administrator for the coor.
dination of the administration of this Supplementary Code with
such other codles, if any, as may be related to the Indus~try.
(f) To recommend t~o the Aidministr~ator further fair trade prac-
tic~e provisions to govern members of this Indust~ry) in their relations
with each other or with other industries and to r~ecommend to the
Admrinistrator measures for industrial planning, including stabiliza-
tion of employment.
(g) To appoint a. Trad~e PraHctice Commlrittee which shall meet
with the Trade Pra.etice Clolmmittees ap~poinltdc- undcer such other
Codes as may be related to the Industry for the purpose of formurlat-
ing fair practices to govern t~he relationships between production
and distribution employers under this Code 'and un~er buch~ ot~er~s
to the end that suchl fair trade practices m-ay be propos~edl to the
Administrator as amendments to thlis Clode and such other co~des.
(h) To provide appropriate facilities for arbitrlat~ion of differ-
ences between members of t~he InldustryF and, subject to th~e approval
of the Administratocr, to prescribe rules of procedure and rulles to
effect compliance w~ith aw~ardls and dletermiiination.
(i) Every emp~loyer shall provide for the safety andl health of
emplloye'es du~ring thie hours andc at. tihe places of their emlploymnent.
Standards for safety and healthi shllR be hubmittell by the Supple-
mentary Code Author~ity to t~he Adc.minis~trator w\ithlin three mvnthls
after the effective date of this Code.
SECrLon 9. To the extent permitted byr the ACct and subjc~t to
such rules and regulations as t~he Administrato~r mnay prcr~ibe, any
and all information furnished to the Supplemnentary Code Author~ity
by any member of this Induistry~ pursuant to the p~rov~iionls of thiis
Supplementary Code shall be subject to verification by an impartial
agency agreed uponi by the Supplementary~ Code AuthorJIity and thEe
member of the Industry in question, and, failing suich agrreemnent,
such impartial agency shall be selected by the Administr~ator, wh~ich
impartial agency may chleclk so much of thle pertinent books, accounts,
and records of such member of the Industry as mnay be required to
verify the accuracy of t~he information so furnished.
SECTION 10. To the extent permitted by the A~ct andl subje~t~ to
such rules and regulations as the Administrantor mayS prescribed,~ the
Supplementary Code Aut~hority~ shall have. the power to investlgatte
all complaints of alleged violations of thiis Supplementary Codle filed
with it by one mlember of this Industry~ aga.inst another member of
the Industry.


The Supplementar~y Code Authority shall cause to be formulated
methods of cost finding and accounting capable of use by all mem-
bersof he ndutryand shall submit such methods to the Adminis-
trator for review. fapoe yteAmnsrtr ulifra
tiosn concerning such methods shall be made available to all members
of this Indu~stry. Thereafter, each member of this Industry shall
utilize such methods to the extent found practicable. Nothing herein
contained shall be construed to permit the Supplementary Code
Authority, any agent thereof, or any member of this Industry to
suggest uniform additions, percentages, or differentials or other
uniform items of cost which are designed to bring about arbitrary
uniformity of costs or prices.

No member of the Indlustry shall sell or exchange or offer to sell
or exchange any product of the Industry at a price, or upon terms
and conditions, which will result in the purchaser paying for the
goods received less than t~he cost to the seller as determined on the
basis of the principles outlined in the standard method of account-
ing referred to in A"rticle V, above; provided that any member may
meet th~e price competition of any other member whose costs under
Article V are lower; provided further that over-stocks of discon-
tinued lines and accumulations of seconds, of shapes and sizes not
readily marketable, may be sold without restriction as to discount
provided they are bona fide goods of these classes only; andl further
provided, that any member of the Industry may, upon giving prxor
notice to thle Supplemlentary Cod~e Authority, sell below his costs
in order that he may meet competition from products of equivalent
design, character, quality, or specifications, manufactured outside the
United States.


~S:C'TION 1. E1ch mlemb~er of thle Industry shall file with a confl-
dential and disinterested agent of the Supplementary Code Authority
an identified net price list or price lists and discount sheet including
all other terms and conditions of sale for such products as the
Supplementary Code Authority may prescribe. Said price terms
shall in the first instance be filed within fifteen (15) days after the
date of a~pproval of this provision. Prire terms and revised price I
terms shall become effective immnediately ulpon receipt thereof by
said agent. Immediately upon receipt ther~eof, said agent shall by1
telegraph or other equally prompt means notify aid member o
the time of such receipt. Such lists and revlisions, together with the
effective time thereof, shall upon receipt be imzmediatelyv and simul-
taneously distributed to all members of the IndustryI and to all of
their customers who have applied therefor and have offered to defray
the cost actually incurred by the Supplementary Code Authority
See paragraph 2 of order approving this Code.

the preparation and distribution thereof and be available, for
section by~ any of their customers at the office of such agent. Said
lists or revisions or any part thereof shall not be made~ avaiilable to
any person until released to all members of the Inldustlry and their
customers, as aforesaid; provided, that prices filed in thle first in-
stance shall not be released until the expiration of the afio~~resid
fifteen (15) days' period after the approval of this Supp~lemenrltar!y
Code. The Supplementary Clode Authority shall maiintain a, per'-
manent file of all price terms Sled as hereinl provided, andl shall not
destroy any part of such records except upon written consent of the
Ad ministry tor. Upon request, t~he Supplementary Code Au~rthority
shall furnish to the Aidministrator or any duly dlesigrnatedl agent
of the Administrator copies of any such hists or revisions of price
rSECTION 2. E'hen ainy metlllber of the Industr~y has filed any re-
vision, such member shall not. file a highler price within fort~y-etight
(48) hours.
SECTION 3. No mlemlber of the Industry shall sell or offer to sell
any products of the Indulstry for which price ter~ms have been. filedl
pursuant to the provrisions of th~is Article, except ini necor~dance with
such price terms.
SECTION 4. NO member of the Indluatry shall enter into~ anly agreed
ment, understanding, combination or conspiracy to ~fix or maiintain
price terms, nor cause or attempt to cause any memb~ter of the Induxs-
try to change his price terms by the use of intimidation, coercion, or
any other influence inconsistent w~ithl the mlaintenanlce, of the free and
open market which it is the purpose of this Article to create.

Supersedinga all unfair trade practices set forth in A~rticle V of
the Basic Code, the following descr~ibed acts shall constitute unfair
practices. Any member of thlis Industr~y who shall directly, or indi-
rectly, through any official, agrent, or r~epr~.esetative,, fail to comply
with any of the following rules of competition shall be d~eemeld to
have violated the Supplementary Code.
RULE i. NO Bleluber of the Indlustryv shall withhorld from or insert
in any invoice a false record, w-holly or in part, of the transaction.
represented on the face thereof, or make paymecnt or allowance of
secret rebates, secret refunds, secret credits, uiineaned discounts
(whether in the formi of mioney or otherwise), or the extension to
certain purchasers of prilces. services, or privileges not extended to all
purchasers under like condition.
RULE 2. No membller of the Inldu tryv shlnl defamie a competitor
by falsely imiputing to him dishoniorab~le conduct, inability to per-
form contracts. questio~nable credit. standling, or by other false repre-
sentation, or by falsely disparaging the grade or quality of his goods.
RULE 3. NO memberiCI of thre Industryl sh~all imitate or simulate the
trade mark, trade name, package, wrapper, or label of a competitor's
product to such a degree as to deceive or have a tendiency to dleceive
ustO m e rS.
RULE 4. No member of the Indlustry shall give, permit to be given,
or offer to give, anything of value for the purpose of influencing or

rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. This provision
shall not be construed to p~roh~ibit free and general distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
RI'LE j. NO member of the Industry shall brand or mark or pack
any goods in any manner which is intended to or does deceive or
misleadI purchasers with respect to the brand, grade, quality, qu~an-
tity, size, substance, character, nature, finish, material, content or
preparation of such goods.
RULE 6. No member of the Industr~y shall publish advertising
(wIhet~her printed, radio, display or of any other nature), which is
misleading or inaccurate in any material particular, nor shall any
member in any way misrepresent any goods includingi but without
limlitation its use, trade mark. grade, quality, quantity, size, sulb-
stance. character, nature, 6inish, material, content or preparation)
or credit terms, values, policies, services, or the nature or form of the
business co~nducted.
RULE '. NO Blember of the Industry shall cancel in whole or in
part, or permit t~he cancellation in whole or in part of any contract
of sale of any product, except for justifiable cause or a fair considera-
tio, r ules aprvedbythe Supplementury Code Authority.
RULE c9. NO member o h nutysalwlul nueo
attempt to induce the breach of existing contracts between comi-
petitors alnd their customers by any false or deceptive means, or
mnterfer~e with or obstruct the performance of any such contractual
dulities or serv-ices by any such means, with the purpose and effect of
hampering, injuring~ or embarrassing competitors in their business.
RUSLE O. NO mlember of the Industry shall offer to give to any
purchaser of any product. any guaranty or protection in any form
against decline after the date of shipment in the market price of
such product.
RUGE 10. No member of the Industry shall make contracts for
periods in excess of six months (all contracts to expire not later than
the last days of June, or December); or quote on or make any
contract more than thirty (30) days prior to the. first day of the
calendar period covecredl by the contract; or ship pursuant to any
contract mior~e than fifteen (15) days after the expiration thereof
or as soon thereafter as the member of the Industry can manufacture
and ship the products of the Indu~stry covered byl the contract; or
m~ake~: contracts containing an option of extension or renewal on the
part of either buyer or seller.
]rUL~E 11. NO memlbGP Of the TndHtlrtV s11811 Sell Or offer tO Sell
commodities other than products of this Industry,? for the purpose of
influencingr a sale, at prices below the invoice price plus all inexdental
costs of such products. If and when the products of this Industry
are sold in combination with products of other Induostries, the invoice
must clearly shlow thle unit price for all articles listed.
ROLE 12. NO member of thle Industry shall offer or give terms of
payment more favorable than thirty (30) days net or two (2) percent
discount for payment on or before the tenth of the month following

month of invoice date, which shall in all cases be the same as
shipping date.
RULE 18. NO member of the Industry shall accept orders for
broken packages unless an additional charge for special hanndlingr is
made therefore.
RULE 1.4. NO member of the Industryg shall to the best of his knowl-
edge make any allowance for unjust claims, alleged shortages, breakl-
age, damage, or on account of any other condition not actall~ly
RULE 15. No member of the Industry shall, fr~om and after the
effective date of this Suppllementary Code, deliver any! products of
the Industry on consignment except, under circumstances to be
defined by the Supplementary Code Authority and approved by the
Admlinistrator where peculiar circumstances of the Induslltr re~quir~e
the practice.

The provisions of this Supplemn"tary Code concer~ning pricing
and marketing are not, to apply to direct export sales of any product,
or to sales of any product dlestinedl ultimately for exporit. Thne term
"L export "~ shall include shipments to countries other than conlfltinentll
U7nit~ed St~at~es.

SECTION i. ThiS Supplementary' Code and all the pr~ovisions ther~eof
are expressly made subject to the right of the Prcsident, in ae-
cordance with the provisions of subsection (b) of Section 10 of the
Act, from time. to time to cancel or miodify any order, alpproval,,
license, rule, or regulation issued undler Title I of said Act.
SECTION 2. This Supp~lementary Clode, except as to provisions re-
quired by the Act, ma~y be molified and or amendled on the basis
of experience or changes in circumstances; suchl modificantio-ns and/or
amendments to be: basedl on application to the Aidministrator by the
Supplementary Codle Aut~hority or other representative group within
the Industry, and such notice and hearing as he shall specify; and to
become effective as part of this Code on applroval by the President.


No provision of this Code shall be so applied as to permit monop-
obies or monopohistle practices, or to chmllinate, oppress or discrunt-
nate against small enterprises.

W hereas~n the po~li cyl of theP ACt toc inlcrens e real pu1rch asi ngr pow er
will be made more dlificult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price. in-
creases except such as mnay be required to meet individual cost should
be delayed, but. when made suchl incr~eases should, so far as possible,
be limited to actual additional increases in the seller's costs.

lI IIl IllllI IlI llllII IIIYIH I lIll l
14 3 1262 08856 1161
This Supplementary Code shall become effective 12: 01 o'clock
A. M. Eastern Standard Time on the tenth day after it is approved,
and shall continue in effect until June 16, 1935, or the earhest date
prior thereto on which the President shall, by proclamation, or the
Congress shall, by joint resolution, declare that the emergency
recognized by Section 1 of the Act has ended. ;.
Approved Code No. 84---Supplement No. 54.
Registry No. 1149-1--06.