NATIONAL RECOVERY ADMINISTRATION
S UPPLE ME NTARY
CODE OF FAIR COMPETITION
TOOL AND IMPLEMENT
(A Division of the Fabricated M~etal Products
Manufacturing and M~etal Finishing
and Mretal Coating Industry)
AS APPROVED ON MARCH 15, 1984
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Surperintendent of Documents, Washington, D.C. - Price 5 cento
Approved Code No. 84--Supplernent No. 7
Registry No. 1149--1-05
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washingrton, D.C., and by district cltirves of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 50-1l Post Oltli.:e Building.
Boston, M~iass. : 1801 Custombliouse.
Buffalo, N'.Y.: Chamber of Commlerce Buib~lin-.
Charleston, S.C.: Chamb~er of Conunilerce 3uitlding.
Chri.::ego, Ill.: Suite 1706, 201 N~orth We~lls Street.
Clevelandc, Ohio: (_hamberli'l of Commller'ee.
D~allas, Texl.: Chamber of Commerce Buiblill.
D~etroit. Mlichl.: Zir1 First N'ational IllBan Buibiling.
Houston, Te~x.: Chamber of Commerce Buildlingr.
Iildmoupolisli Inld.: Chamlber of Commercee Buildling.
Jacklsonville, Fla.: C:hamuber of Commerce Buildlizgr.
K'ansas City, Mt,.: 10.:-'s Baltimore Avenue.
Los Angeles. Calif,: 116;3 South Broadway.
Louisville, Kiy.: 10>' Fedleral Buildling.
Memnphis, Tenn. : 220 Federal Building.
Minneapolis, iMinn.: 2;13 F'ederal Building.
New Orleans, La.: Room 22~5-A, Customhouse.
N'ew York, N.Y.: 734 Cus~tomhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust B~uilding.
Pittsbur~gh, Pa.: Chamber of Comlmerce Building..
Portland, Oreg;.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San F'rancisco, Calif.: 310 Custombouse.
Seattle, WCash.: >.r0 Fedleral Office Building.
Approved Code No. 84--Supplemnent No. 7
SUPPLEMENTARY CODE OF FiAIRt COMIPETITION
TOOL ANDJI ~NIMPIBMENT: MANUFACTIUIRINGJ
As Approved on. March 15, 1934
.Ar noI'K(\ St;UPP''IfnLEMENTARY COIDE OF FAIR COMPEITION FOR THE TOOLj
AN;D TaIPLEMIENT XFANUFAC'T~T'IN; T~INDSTRY
A IVI IONl~ OF THIE F.\BRICAiTEDI METAL PRODUCTS MANLUFACTURING AND
METAL .FINISHING AND METAL COATING INDUlSTRY
An application having~ been duly made purrslnlrt to and in full
rcompllianle w-ithl the provisions of Title I of the National Induslltrial
RecoveryS Act, approvedc June 16, 1:3:3. and in ncc~ordiancec wcith thre
prlovisionsl of Section I of Article VI. of the Basic Codle for the 1Fab-
r~ientted Metal Produlrcti: Manuirfai.turniner and Me~tal Finishiner and
Metal C~ontingr Industry, approve,\ d Nlrovemnber 2, 198:3, for approval\, 1
o~f a SulPplemeinta ry! Code of ]Fair Compilet itionl for the Tool and
:Imp'cn~lement Mnu facturinb InldullStry; and hearing hav\ingl been duly
hePld thlereon; and the annexedl report on, said Suppllemenltary Code
cotiigfindcingrs with respect thereto, hnavinga bee~n madelt ami
dlirc~ted~ to the President:
NOW~, TH'IEREFiORE. on behallf of the P~re~idenlt of thel Unitedt
States. I, H~ugh S. Johlnson, Administrator for Industrial Rec~ov~r~y,
puruan toautorty estd i mebyExecultive Order1s of thie Presi-
depnt, inc~luingiir Execu~tive Oirder o 53A atdDcme 0
1933, and othler~iset; do hereby incor~por~ate by refer~enc~e said annexed~
repor.t and~ do find that said~ Supp~lemlentary Code eomnplies in all
respects w~ith thle per~tinent provisions and wvill promote the po~licy
and p~r~poses of said T'itle of said Act; and do her~eby border that
said Supp~leinentualry Code o~f Fair Competition be anrd it is hereb~cy
appr~oved; pr~ovided, how~ever, thant thne provisions of Article V, ]Rule
1, insofar as they prscr~ibe a -waiting period betw-een the filing w\ithi
the Code Aluth~ority andl th~e effective date of revised price lists or
r~evisedl terms and conditions of sale be and th~ey are hereb~ly st~ayed
pendtinrr my fur~tler r Orderl either within a period of sixty days fr~om
40474*-1 0425-76---3 (I1
the effective date of this Code or after the completion of a study
of open price associations now beings conducted by the National
HUG~nH S. JOHNSON,
Administrator for Indianidbl(7 Rcov2ery.
Approval recommended :
W. AL~. HEARRIMAN,
MancH 15, 1934.
RE=PO]RT TO THE PRESIDENT
SmR: This is a r~eport on the Suppilementary Code of Fair Compel-
tition for the T1Cool and Implement Mlanulfacturinga TIndustry, a dlvi-
sion1 of the Faibricated~. Metal IProducts Manullfnct tuning and 3fetal
Finishing and1 Metatl Coatingr Industry the hearing having been
ccnduclltedl thereon in Wa~shilngton, jD.O., December 18, 1933, in
ncc.ordaceulc with the provisions of Title I of the National Indulstrial
GEN ERAL I STA-TEMIENT
Thep Tool and Implement, ATlanufnleturing~ Industry, being truly
reprl"esellntntie of this d'ivisio-n of the Fabr1iented Mfetal Produrcts
Manulfnetu ringl and MeFtal Finishing and Mertal Coating Industry,
hlas elecctedl to avail itself of the option. of submitting a Supplemen-
tary~ Code~ of Fair Practic-e, as prov,\idedl for in Srection 1_ of Artiecle
VI1 of the Basic Code, for the Fabricated ~eftall Products Alanufac.
tulring and Me~lctal Fijnish~ingt and I\fetal Conting nusr ppoe
by you on the sec~ondl day of N~o-vember, 1_933.
Rshen&I OF THE CODE
Article I states the purposce of the Supplemenmtary Codel.
Article II accurately defines sp~ecifi: terms emnployred in the Sulp-
Article III. This Industry is a livision of the Fabricated Mectal
Products Manuil~lf acturing~ anld Me2tal Finishingr and M~etal Conting
Indulstr~y and the labor provisions of its Basic Cod~e, as apprloved-
Novemberc~ 2, 1933.~ ar~e the labor provisions of this Supplementary
Article IV establishes a Su~pplemet~n ntry Code Authority cons~istinlg
of sevenl (7) mlemlbers8 lelected by the mnemrbers of the Industr~y at a
meeting called by the Sulppleme~nting Codle Authoriity, and gives the
Aidmnisl.trtratr the authlority to appomnt one additional member wcPith-
oult vote and provides mnach~iner~y for obtaining statistics and the
admlninistration of the Supp~lemnentary Code.
Art ic~le V sets forth thle unfair trade~r prac~tices of this Supplemellcn-
farv'\ Code whfich has bencl eispecki~ly designedcr to olffset unfair com-
petitioin in this divi ion of the Indust ry.
Article VI pr1ovid~es against mlonol:polies and1I mlonlopolis;tic penet~'irces.
Article VII con t i ns the man Idatory9P'~\ poision conlta1i nedt in Sect ion
10l (b) of the Act and also pr~ovide for thie ~lillsubislo of propos~,edl
amendmnents to the Su~ppellmentunry Code.
Article VIII recogrnizes that price increases enc~ept such as 11nny3 be
required to meet individual costs dlhould be delayed.
Article IX sets forth that assent to this Supplemlentary Code does
not involve the waiving of any constitutional rights.
Article X~s states the effective date and duration of this Supplemen-
The Assistant Deputy Administrator in his final report to me on
said Supplemlentary Code having found as herein set forth and on
the basis of all the proceedings in this matter :
I find that:
(a) Said Supplementary Code is well desigrned to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign conrunerce which tendt to diminish the amnouont thereof and
will provide for the general welfare by promoting the organization
of industry for the purposes of cooperative action among the trade
groups, by inducing and maintaining unlited~ action of labor and
mana1:gemlent ~under adesp~lal~tel governmental sanctions and. supervision,
by eimintin unfair competitive penelctices, by promoting t~he fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
por~arily required), by inlcreas~in g the co~n-lumptio n of industrial and
agricultural products through inlllC'encingb pr)Uchn-ing~ power, by re-
dlucing and relieving unemploymnentby improvi~n;ngr sta~lcndds of
labor, andl by otherwise rehabilitating indusltr3..
(b) Satid Industry normally employs not more than 50,000 eml-
ploryees; and is not classified by me as aL major industry.
(c) Thle Supplementary Code as approved conupllies 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
7i, and Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative of thne
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Supplemnentary Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) T'he Supplemnentary Code Is not des~ignetd to and will not elimi-
nate or oppress small enterprises and will not operate to discriminate
(f) T1Chose -engaged in other steps of the economic 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
HuanI S. Jo3Nwson,
MARCH 15,1 1934.
SUTPIPrLEM~EN~TARRY CODE OF F~iAI[R COMPETITION FO]R
THE TOOL AND> IMrPLE3EMENT MANU~~FACTURING
Ai DIVISION OF THIE F.1HR~ICAT~1ED METAL PRODCTS~(. f INE.TIF.\CTU`1RING AND
ARTICLE I -FORPOS~EA
Tro effectua:-te the policies of title I of thec Natiojnal Industrial
Recovery ALct, this Code is e~stablihed~c as a Supplemlenltury Code of
Fiair Comnpetitionl for the T"ool and Implllementllt Manullfactui I' ]n-
dulstry.. Pursuanit to Article VI of the BEasic Code of Fair C'ompe-
tition for the ]Fabrienctedl Metal Products Mannufacturingn, and M~etal
Finshig ad MtalCoaingIndustry approved by the Preisidetnt on
the 2nd an of Novemnber, 1933, the provisions of this Supp~lemlentary
Co~de shall be the starcndards~ of Fiair Comnpettitions of such industry
andc~ shaull be bindting upon every mlll.embe of the Indu~stry.
ARTCLE II DenN~lIrUSs
The termn L"Tool and7 Implement Man7lufacturingl, Industry "! herel-
inlafter referred to as thne "IndusrltryS means andl inc~ludets the mnan-
ulfactulre for use or for sale, in whole or in substantial part, of axes,
h~atchets, halumers,~ scycthles, snathes, gras~s hooks, steel gioodls (mean?1-
ing: forks, hloes, r~ake~s and like tools), shovels, and post hole dli,,_ers;
prov'\ided, however, that o~rg~anizations~i or groups1, of mnanufadurerl~Is
recpresentinf hiinlds or types of hand tools and/or hand imlementslr'lf
noct specifically Inamedd herein, may become parties to or be exemlpt
fromin this Sulppleme~ntary Code uipon approval by th~e Administrator.l'
The terml "i emlployee as used~ herein icludellts anyonellt en~~igage in
thle .indullstry' in anly capacity r~ecei vi ng compensatl;ltion, for his services,
i respect i ve of the nature orI meit hod of paymnt'l~l of such compensat ionr.
T'he term emnployer as ulsed he~ic~rei includes anyone by whom!(I1
anyv suich employee is comlwnls~late7 or employed..
Th'le terml "' memlber of the IndustryS as used herein incindtes, but
without limlitation, any individual, partnerchip, associntion, cor-
p~orationl or other forml of enterprise en3gaged in the indu11flS try either
as anl emplloy~er or onr his or its own behalllf.
T"he terml Industry Divisio~n "' refers re,;lecctivelyv to the ~followfingr
separate branches of thle Indust ry : "LAxe D1\ivison ","Hthe ii
Sionl "', "L Hammers Division "', S~cythe and Snathe Division "', Steel
Goods D~ivision ", (mneaning fo~rks, hIoes, rakes anld lik~e tools), and~
"L Shovel anl 1Po t HoTle Di:Iger D~ivision "', and~ to any sepa~rate divi-
sion wh~ich mayr be later or~ganizedt under this Suppllementary1 Code.
The term "' Member of a Division means and includes any indi-
vidu~al, partnership, association, corporation or other form of enter-
prise engaged in the industry divisions as above defined.
The term Presidlent ", "Act and "LAdmninistrattor as used
herein. shall mean rleipetively the President of the United States,
the National Industrial ~RecoveryAt n h diitao o
Industrial Recovery under Tlitle I of~i~~ct1t said At.eAmnstao o
Thne term Basic Code as used herein, is defined to mean the
Basic Code of Fair Competition for the Fabr,1icate
approved by the President on the 2nd day of November, 1933.
The term "' Suppolem~enrtary Code Atuthority as used herein means
the agency which is to administer this Supplementary CodZe as here-
The term "Association as used herein, is defined to mean the
General Tool and Imnpleme~nt ALssociation. or its successor.
The term. Code Committee is defined to maean the Executive
Committee of the Association.
TPhe term Secretary is defined to mean th-e S~cr~ctary~ of the
Supplem~entary Code Atuthority.
The term ": Federation as used herein is defined to mean. Fabri-
cated Metal Products Federation or its su.c-cessrc~..
ARTICLE III[--EMlPLOYMENT PROVISIONS
This industry is a, division of the Fabricated Met~al 1Products Matn-
Ilfurctur~ing and Metl~ Finishing and Mletal Coating Industry and the
labor provisions of its Basic Code as approved by the President are
the labor provisions of this Supplementary Code, as though herein
repeated and set forth at length.
ARTICLE IVT--ORGANIZATION AND ADMINISTRATION
SECTION 1. During the period not to exceed sixty (60) days follow-
ing the: effective date, the Code Committee of the Association shall
constitute a Temporary Supplemnenltary Code Authority until the
Supplementatry Code Authority is elected.
There shall be constituted within the sixty (60) dayr period a Sup-
p'~lementury Code Authority consisting of seven (7) members, to be
elected by the members of the Industry, at a meeting called by the
Tempoorary Supplementary Code Authority, upon ten (10) Idays'
notice sent by registered mail to all kznownlc members of the Industry,
who may vote either in person or by proxy. The members of the
Supplementary Code Kluthority first elected shall serve until the fol-
lowing annual meeting of the Association in October, 1934, and there-
after members of the ~Supplementaryg Code AIuthority shall be elected
at each annual meeting of the Association to serve until the follow-
ing annual mee~ting.
Tlhe members of the Supplementary C~ode Authority shall be
elected in th~e following manner :
(a) Two members who shall be members of the Industry by a
majority vote of all known members of the Industry present in per-
son or by proxy, each member tos have one vote.
(b) One member wtrho is not a member of the Assoc~iation by a ma-
jor~ity vote of all know,\n memnbers of the TInduistry, present in person,
orI hy! plroxy', each mmclber to hiave one? vote.
(c) 1i'our members by a Dipo vote of members of thie Association
I'resent in person or by proxy w'eighted onl the basis of one vocte for
eachz membercl anid ole, aditocitnal vote for eachl $5,000.00 of annual
sales in thle prvc\ious caletndar year reportedly to the Temlporary Codle
Authority : pro!videdi however, that nio mlemnbr may cast more than
331:aTZ of ther total number of votes cast.
A~ racancly in the mnemberclshi p of the Supplemlentary Code Authlor-
ity maly be filled by a manjor~ity vote of the remaining members of
the Sup~plemen"tary Codle Authority.
Provided, however, that thie right to vote as set forth above shall
bet sublj~c~t, to thie limlitations providedl in Section 4 of this Article.
Inl additional therleto the Admiinistrator mnay appoint a memcrber
of thle Sulpplemlentar 1y Code Auth~ority wgho withOut vote shall serve
without exp~ense. to the Industry, unless the Supplementary Code
Authlority agrees to pay sulch expense. Thle member who may be
appo)inlted by the Administl:trato shall be giv~en. reasonable notice of
all meectings and may sit at all meetings of the Suprplementary; Code
SEC.TIox 2. Any Association directly or indirectly particip~atinrm in
thle selection or activities of the Supplementart~ ly Code Atuthnority sid1l
(1) impose, no inequitable restrictions on admission to mlemnbership,
and (2) sublmit to the AZdministr~ator true co~pies of its articles of
assioc~intio~n, by)-laws, regulations, and any amlenmennts when mad~ce
therleto, tog~ether with such other information as to membership,
organization, and activities as the Ad~ministrastor may deem~ necessary
to effect~uate the purposes of the Act.
SECTION. 3. In1 border that the Supplemecntary Code Authority shall
at all times be truly r~epr~esentative of the Indlustry anrd in other
respects comply withl the provisions of t'he Act, the Administrator
mayi pr'escribe such hearings as he may deem proper~;l and, threafte
if he shall find that the Suplplemlentary Code Atoiyi o rl
representativee or doesj not in other respects comply writhl the pro-
visions of the Act, may require an app~ropor~iate modification in the
mnethtod of selection of the Sup~plementaryT C'ode Authorit~y.
SECTros 4. All members of the Industqr are subject to the jurisdlic-
tion of the Supplmenturyf71`J Code; shall be entitled to participate in
the ac~tivities of' andr shlare the! benefits of the Sulpplemlentary~ Code
Authority; shall be entitled to vote! in the selection of Classes (a)
and (b) mlembers of the Supplementary Code Authority as providled
inr Sec~tion 1, of this AArticle; and shall pay' their reasonable share of
the expenses of the administration of this Supplementary Code, such
reasonable shares to be determined bg the Supplementary Code
Authlor~ity, subject to review by th~e Admmnistrator, on the basis of vol-
ume of bulsiness and/or such other factors as may be deemed equitable
b~y thte Supplementary Code Authority.
SECTION 5. The Supplementary Code Authority shall have all the
powers and duties which shall be necessaryd and poe to enftable its
to fully administer this Supplementary Cd n oefcut t
Without limitation to the foregoing or any other powers or duties
provided for in this Supplemecntary Code, the Supplementary Code
Authority shall have the following specific duties:
(a) To establish after dlue notice, investigation and hearing
whether in their opinion any member of the Industry has committed
a violation of anly provision of this Supplementary Code, and report
same to the Aitdministrator. In. case any member of the Industry
makes a complaint to the Supplementary Code Authority that anly
other member of the Indlustr~y is not complyingr with any particular
trade practice rule of this Supplemlentary Code, the Supplemlentary
Code Authority may require thie division of the Industry affected to
makre a written report of th~e facts with its recommendations to the
Supplemnentary Code Acuthority to guide its decision.
(b) TIo adopt by-laws and rules and regulations for its procedure
and for the administration of the Supplementar~y Code.
(c) To obtain fr~om members of the Industry such information
and reports as the Supplementary Code Authority may require for
the administration of the Supplementary Codle and to provide for
su~bin~i ln by members of the Indus~itry of such information and
reports as are necessary for the purposes recited in. Section 3 (a)
of thle A~ct; provided that nlothingr in this Sup~plem'entary Code
shall reliever: anly member of the industry3 of anly eistinglr obligations
to furnish reports to any Government agency,. No individual reports
shanll be tliwrlosed~ to any other member of the Industry or to anyone
other than the Adlministrator or hris duly authorized representative
andl as hereinafter provided.
(dl) To use such trade associations and other agec~ries as it deems
proper for the ca~rry~ing out of anly of its no~tivities provided for
herein, provided. that nothing herein shall relieve the Supplementary
Code Authority of its dul~ties or responsibilities under this Sup-
plementary Code andl that such trade associations and agn~lc.iei shall
at all timesC' be subject to and comply with thle provisions hereof.
(e) TIo make recommendations to the Adm~rin-istrator for the coor-
dination of the admlinistrationo1 of this Suppltlemelntay Code with
su~cht other codes, if any, as mnay be related to this Industry.
(f) To secure from nilembl:er~s of the Industry an equitable and
pr~op~ortionllate paym~'ent of the reasnonale~ll expenses of maintaining the
Supplementary Code Authority and its n~t i vi ties, basedc~ upon volume
of business ancd/or suchl other factors as the Supplementary Codes
Authority may prsc~r-1ibet.
(g) To cooperate with the Administrator in. regu~lalti ng the use
of anly N.R.A. insignia solely by those :inemb-ers of the Industryi1'3
wrho have n en'lted to, and are complying with, this Supplementary
To .l(reqire that any article mlanufactured by those members of
thle Industry who have assented to and are complying with this
Suppleme"'"ntry Code shall bear the N.R.A. insignia.
(h) To recommend to the Admrinistrator further fair tradeclc prac-
tice provisions to g~overn members of the Ind~usctry3 in their relations
with each other or with other industries and to rec~colnunend to the
Administrator menliures~i for industrial planning, in~clud~ing stabi-
lization of employment.
(i) To furnish fr~oml time to time to the; Basic Cod~e Au~thlor~it
designatedl inl said Ba~sic Codle suichl inforllrmtio~n as may be reqluired
to, be furnished underl the terms of thle B3asic Codle.
1Sren.Tox 6. Any and. all informan~tio nl f~rnishled to the Secretaryr of
the SupplemrentaryT Code Authlorityil, or other p~erson or committee
ap'pointedl by thle Suppleme~~ntar IC'ote Auth~ority, by a corporate
memlber of the Indlustry3 shall be subject to inves~tg~tigton to th~e extent
permitted~ by the Act for the purpVose of verificantioln by a disinterested
pecrsonl or petrsonls mutually agreed upon by the Supplemen~ltalry Code
Au~thlority and thle memllber of the Industry or by a person or persons
nonilnatell by the Supp!lementary~ Code Authority and app~roved by
the Admlninistrator.. The. cost of such investigation shall be treattedi
as an exrpnse of a min~;~ister~i n the Supllplementa~r~y Code; providled,
howeverll, tha~t, if uplon such'`f inves~itigation any such info~rmalntion shall:
be shlownl to hav~e been incorrect in any material respect, such costs
shanll be paid by the memllber' of the Industry which furnished such
information, provided the said mem~lberl hias a~ssentedl to the Supple-
.mentur~y Codle, and splecificanlly to the pr)'ov'isions of this Sectionl.
SECTION 7. All individual and private info~rmation received from
r~epor~ts byr the Secretary, appointee or committee, or as a re ult of
inves~tigationo shall be held in. strict c~onf~idenc~e and not dlisclose~d to
any complletitorI or mother persons11 outside the Secretary's office, with-
out the permissionl of the memberIt'l of the Indus~ltry involved~.l
Protvided~, however, that swl~h inlformatinti~r may be disclosed to any
authiorize~d governmental~ agency.
Prov~idedc, further, that whelcn n~ecessary~ in. the hearings of a comn-
plailt, information resulting fr~om an investigation mnay be disclosed
to the Supplementary Code3 Authority or its appointee, and
Pr~ovid~edl, further, that information pertaining to the reporting of
prices, terms and conditions mray be disclosed to effectuate the pur-
poses of this Sf;upplrementary3 Code in. accordalnc e with Article VT,
SECTION 8. Atny division may adopt its owFn regulationss anid col-
ledt statistics to carry out the Fair Trade Practices and any other
provisions of this Supplementary Code.
Each industrial division shall heep miinuites of its meetings,
copies of w~hic~h minutes shall be fled~ with the Secretary.
SECTION 9. The members of the Inldustry shall report in the~t first
instanl.e to the? Supplemnentaryr Code Authority or their appointees
anly complaintst reglarding~ an alleged violation of this Supplementary
Code. The Supplemnentaryr Code Authorit~y shall have the power to
establish after due notice, investigation and hearing, whether in. their
opinion a~nyr member of the Indlustry has committed a violation of
any Pr'ovis'o of thlis Su;pplemntaryy Code, and report same to the
AdmInistrator. The SuppI~lementaryt~ Code Authority shall in addi-
tion to the penalties providel byte National Indust~rial Recovery
Act furrther have thle power to establishl from timle to tim fines
anld penalties for the breach of said provision by those assenting to
this Supplementary Code and specifically to this provision and, to
make adequate rules and take such action for the! collections anrd th
disposition of said fines after collection or the waiving of said
fines as thley deeml proper in the interest of the IndustryT or Industry
Divisions and in conformity with thle purpose of the Nationlal Indtus-
trial Rtecovery Act. An appeal from the: determination of and fines
and penalties implosedl by the Supplementary Code Authority ma~y
be mnade to the Admini t r;t or.
SECTIONI 10. Nothing contained in this Supp~lemlellntSry Code shall
constitute the mlemnbers of the Supp~lemnentary Code Authority part-
ners for any purpose. Nor shall any member of the Supplementary
Code Authorit~y be liable in any manner to anyone for any act of
anly other member. officer, agent or employee of the Supplementary
Ctode Authlority. Nor shall anly member of the Supplementary Code
Authority~, exere~i~mi n reasonable Ililigen(ce in the conduct of his duties
herellnneer,, he liable to anyone for any action or omission to act under
this Suppilementrry Code3, except for his own willful misfeasance or
SECTION 11. ITf the Admc~linistr~ator believes that any' action. of the
Supplementary Code Authiority or any agency thereof is unfair or
unjust or contrary to the public interest, the Administrator may re-
quire that such nation be iucpendedl for a period of not to excteed
thirty (30) days to afford an opportunity for investigation of the
merits of such action. FEurther action by such Supplementary Code
Authority or agncll.y regarding the matter complained of shall not
be takien if lisnp1,proved by the ~Administrator on or before the expira-
tionl of the thirty (30) dlay period set forth above.
ARTICLE V7--UsriFBI TRADE PRACTICES
In addition to the u~nfa~ir trade pr ac~-t ices covered by Article V of
the Basic Code which are incorporatedt herein, the same as though~
herein repeated, a~nd set forth at length and for all purposes of this
Supplementary Code, the following describedl acts shall constituted?
unfair practices. Any member of the industry whlo shall directly or
indirectly through any officer, employee, agelt~ or represen~lltta\tive
use or employ any of such unfair prlc~tices, shall be guilty of a viola-
tion of this Supplementary Code.
RULrE 1. Every member of the IndullstryJ shall file with~ thle Sup-
plem~entary Code Authority withinI tenl (10) days after the effective
date prIice lists andi copies of all other quotations and terms of sale
including credit, f!eight and all discounts individually prepared~c by
him which shall be open to the inspection of all members of his
Industry division and all other interested persons, and any depn r-
ture thnerefromn by any memberllcl of the Industry with respect to any
pa r'ticular customer is an unfair trade practice. Revised prices, as
made from time to time, shall be filed with the Supplementary Code
APuthority o become effective ten (10) days from the receipt thereof
by thne Suplllementary Code Authority and copies t'her~eof with
notice of the effective date, shall therel~upon' be iiinued~iately sent to
all members of the same Industry D~ivision who may file, if they
so desire, revisions of their prices w~hich. shall btcomlle effec~tive uponl
the date when the revised prices first filed shall go into effect.
Nuo member of the Indutry~t~ shall so classify his cusloltomes tha~t
the different prices charged at the same time for the same goods
for the sallc qluanltity to~ dilfferent custonwrs con-tli~tute unfair cls-
D'liminatlf io n be~twe ~r culrst homers or unfair competition in thc Indus~itr'y
Ea~chi membeH- r of the Indlust~y shall fuirni hl thc Suipplementaryy
Codec Au~tho-r~ityl for distribution suchl number~l of copies- of his price
li ts and /lor discount sheetst as Supplementary Coder Authocrity may
RTLE 2. The Sulpplementaryr Code Authlority shall make studies
for thne simpllifica~tion of products in. the different divisionls of thie
Indlustryg, the elimiiinationi of unlnecessary or infrequlently demandedc
size~s or types andi for thne establishment of dimensional standards in
cooper~ation with the Bureau of StI;andards of the UInited States D~e-
par~tment, of Commlnerce withn the view to their recomnmendation s for
adtcoption by the dlifferettlt divisions of this Industry. This stuldy
shall be Irllicmplte within the period of one (1) yeacr from the effec-
tir-e da:te of this Supp~li~l l~lemnar'y Code. Suchr retcommren dattionls of
the! Sulppkmenturlf~ 1y Code Au~rthcr~ity for a division of thet Indcustr~y,
whnll appIroved` by two-thirds vote of the members of ~ thdivisionl
of the Indusl.-tryS and thze Admlini;tratorl shall become thze standnr~d s
for the division, n and shall become e~ff~crtiv~e sixty (60) day~s after
suchl approval. Thlereanfter, all Itmembes of the dliriion shall follow
such standlards. Failurle to follow such standlards set-up by the
Supplemnentaryr Cotle ALuthority, so approved by th members of
the d:Ii \i sin r of th~e Indiustry and the AdmIinIIi.- stR aor,1 will be an unfair
me~thdc,~ of (.lllcmpeitionl andl~ a violation of this Supplemeltntary Code.
ProvIded; howrever1, tha~t exiceptio~ns to suchn stan~ndards may be appliedr
for byl formal~lly peitfioninglll the Supplemellntay Code A~uthority, and
if thle Supplemellntary3 C~ode ALu~thority dloes not disapprovrc~ e inl writ-
ing within sixty (60) days the petition shall become final wPhen r~ati-
fledl by two-thirds vote of the mlemuber~s of such division of the In-
dusltr~y, andl if the Supplem~entar~y Codle Authority dfil-alpproves~, an
alppeal may be taken to the Admninistr~ator.
RULE 3. -Piacy.--To imnitate or simulate a compe~ttitor's catalogue
numb~er by which his particular gvoods are known and idecntified`, or to,
im~itate a competitor's product, in which he or it has acquired a goodl
~will, in design or dre~ss to such a, degree as to dlecelve~ or have a
te~ndencyJ to dceccive customers or prospectivec customers.
RULE 4. C~OIE8ignm enL~t.--Shipping goods on consi~gnment,~t except
undc1r cir'c'1umstancCeS to be defined b~y the Supplemlent~ary Code Atu-
tllwrity~, whencr peculiar circumstances of the Industryr reqcuir~e the
RULE 5. Insprts.--Tf it shall develop that foreigrn-m~ade goods are
offeredi rat a; price less than that which may be quotedl byr any member~l
of thle Indcustr~y undercl the provisions of this Supplemllentalry Code,
the facts shall be reported to the Supplementary Code Authority,.
whlo will take thre matter up with the poe oenetaec o
relief through adjustment o f thle~n;~n;~n;~n~n;~n;~ tariffllf geey o
R r-LE 6. Exjport~s.- ExJ ce~pt as ma y be subsequellIcn tly set forth. in a
specific or Supplementar~y Export Code for the Indlustry~, thie pr~o-
visions of this Supplementary Code now or hereafter adopted with
a See paragraph 2 of ordr approving this Code.
regard to prices, discounts, deductions, allowances, extras, com-
m~issions or methods and/or terms of sale, are not to apply to direct
export sales. The term export shall include, in addition to
shipments to foreign countries shipments to such Ulnited States
possessions as may be defined by the Su;lpp-lementa7ry Code Aluthority
and approved by the Administrator.
RULE '7. Increased Facilities to be Reported.--T~he present capac-
it~y of thne Industry is far in excess of pr~esent or prosp'lective nee~ds.
Th-erefore after the effective date of this Supp~elemntaryl Code no
present member of the Industry shall initiate conl-trulctionn of or
install any additional producing equipment or dies for the manu-
fulrturle of lines wcshich he is not selling or manufacturing or of
which he has not already initiated the manufacture at the3 time of
the approval of this Supp~lementary Code without first reporting
to the Supplementary Code Alut-hor~ity and to the Adcministr~ator the
need for additional productive czlapactly and his ability to supply it
If in the future any other individual, firm, corporation, partner-
ship or other form3 of enterprise desires to establish additional
catpacities, production,. equipment or dies for tools and implements
as covered by this Supplementary Clode he or it also shall first report
to the Su~pplementary Code Authority and the Admninistrator thle
same information requl~ired~c inl the precedingf paragraph.'l 1
In both cases the Supp~lemlentary Code Auzthority shall report
the facts to the Alanini-t:tor to and state whether in its judgment
in the present emergency public nlcess.city and convenience requires
such additional e~np-nity.'
RULE 8. LSeing Belowe HeasoTnable Cost.--When the Suzpplemen-
tary Code Authority determines that an emergency exists in this
industry and that the cause thereof is destructive price-cutting such
as to render ineffective or seriously endanger the rnl;intecnnnee of
the provisions of this Supplementary Code, th-e Suppkinerllntar~y
Code Authority mnay cause to be determined the lowest reasonable
cost o-f the products of this industry, suzch. determination. to be
subject to such notice and hearing as the Administrator may require.
The Adm~inistraltor may approve, disapprove, or mo~dify the deter-
mination. Thereafter, during the period of the emergency, it shall
be an unfair trade practice for an~y member of the industry- to sell
or offer to sell any products of the iw~u.,tr~y for which the lowest
reasonable cost has been determined at such prices or upon such
terms or conditions of sale that the buyer will pay less therefore than
the lowt7est r~easonable cost of such products.
Whnen it appears that conditions have changed, the Suplpl~lemetntry
Code Authority, upon its own initiative or upon the reqc~uelst, of any
interested party, shall ~n use~ the detlermiination to be reviewed.
ARTICLE VI--31KOPO LIES
N~o provision of this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to elimninate,
oppress, or discriminate against small enterprises.
SEcTrIO: i. Tills Eulple~llienitrl Iy Co000 a11 all the prov,\isio~ns
thereocf arc expr~cely made~l subljeC't to the right of the Pres~identlt in
necordance~c w\ith the pr~ovisions~ of sub-sctioni (b) of Section 10 of
the Aict, fromll time to times to ca~ncecl or modnify: any ordetcr, approvl,\;l
licensec, rulec or regu~lation issued unde~lr said Act.
SeemclI~s 2. By pr1esentingr this Supp:lelmentary Code thne mcmberss
of the Industryf1' do not here~tby conlsent to any mIlodific~ationl thecreof,
and~ theyf rIelerve the right to object to any such modifications without
being~ given an oppor~tunity' to be h~eard.
Seen~v Tis SpplmenaryCode, except as to p~rovisions
requ~ired~c by thre Act, may~ be moiedr mneontebsso
lexpeienc~e or chalrnges in circumstances, such mlodifientions and/or
amndmentllllls to be ba edc upon applricationl by the Supplemnentaryr
Codelc Authority or o~therl :re~presentative group within the industry
to the Admllinis trator' an~d suchl notice and heanrmg as ]he shall specify
andlc to blecomlle effective on the appralcl\ n by the President, and/or the
Adml ri ni st r:t o r.
ARlTICLE VIII PRICE TNC'REASES
Wh'lereas the policy of the Act to increase real purchasing pIower
wl~ill be mIlade m~ore diftleult of ~II1113fco maio.n if prl'ices of goods and
serv\ice~s incre~tase as rapidly as wag1~es, it is r~ecognrized~ that prlice in-
crese exep sch s aybe I~requiredl to meet individual rcosts should
braes delayep.t whenh ma delrl, such ilc~realses should, so far as poc-ssib~le,
be limiitedl to actual, additional inlcreas~es in the seller's c~osts.
By ~'." presentin t~h is '".'P n Suplmn tury Codec, those a sse lt in he~ret1CIfo a re
not 'thereby waivinig any of their constitutional rights.
iARTIC.LE X--EFFECTI?\E DATE AND) DUnRrIIoN
This S~upplemnentary Code shall b~ec~om~e effective at 12:01 o'clock
A.Mil. Easterln Standaruld TPimle on the tenth dfay after it is appr~oved
by thne Administrator and shall continue in effect until June 16, 1935i
or the ear~liest date prior th~erecto on which the Pr~esident shall, by
proc'lamat ionr, or the Congr~ess shall, byT joint resolution declare thlat
the emlergSency rtcognized by Section. 1 of thle NEa~tional Industrial1
Rccovery Act, hans ended.
Allprovedl (-lbde No. 8-1. SuI~~pplemen No. 7.
Nreistr~y No. 1149-1-0.
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