For sae by Ihe Su~perinlan~dent of Documents. Washington, D.C. Price 5 cents
Approved Code No. 84-Supplement No. 33
Registry No. 1140--04
NATIONAL RECOVERY ADMINISTRATION
AS APPROVED ON IMAY 24, 1934
.. -- ---WE-DD Oil PART
GOVERNMENT PRINTING OFFICE
SUPP LEM E NTA RY
CODE OF FAIR COMPETITION
FLEXIBLE METAL HOSE
AND TUBING MANUFACTURING
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
This publication is for sale by the Superintendtent of Documents, Government
Printing O~ffice, Washing~ton, D.C., aind by district O:,~icesg of the Blureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Altlanrta, Ga.: 504 Post Offce Buildling.
Birmingham, Ala.: 257 Fede~iral Builline.
Boston, Mlass.: 1801 Cust-ombouse.
Bu-ffalo, N.Y.: c'liambrcl of Commnerce Buildingr.
Cha~rllestl.nl S.C.: Chamber of Commerce Bfuilding.
Chilvesl Ill.: Buite 1706j, 201 North WTvells Street.
Clevelandc, Ohio: Chamber of Com7merce.
D~allas, Tlx.: Chamber of Commerce Buildingr.
De~troit, Mlic.ll: 801 First National Banki Buailding.
H~ouston, Tex.: C'j:usher.L of Commerce Build~ing.
Indlianapolis, Indl.: Chamber of Commerce Buildling.
Jackrsonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 1Baltimore Avenue.
Los Angoeles, Calif.: 1163 South B3roadiway.
Louisville, Ky.: 408 F'ederal Buildinzg.
Memphis, Tenln.: 229 Federal B3uilding.
Minneapolis, Mlinn.: 218 Federal Building~.
New Orl':ansl. La.: Room 225-A, Customhlouse.
New York, N.Y.: '734 Customhouse.
N\orfolk;, Va.: 406 E :t Plume Street.
Philadelphia, Pa.: 422'I Commercial Trust Builfing~.
Pittsblurgh. Pa.: Chamber of Commerce Buildling.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San FErancisco, Calif.: 310 Custombouse.
Seattle, WIash.: 809 Federal Office B~uildinlg.
Approved Code No. 84-Supplement No. 33
SUPPLEMENTARYli CODE OF FiAIR COMtPETITION;
FLEXIBLE METAL OSE: AND TUBING
AQs Approved on TMay 24, 19341
Arrnortso rSjmPLEMENIETARY CODE OF FAIR COMPETITION FORt THE
.FLEXIBLE %f~ETAL HjOBE AND TUBING IMANUIFACTRING TND17STIRY
A DIV'ISIO.N OF THE FABR(ICA.TED) MIETAI I'!P(.DECTS MIANUFA".~CTUIING; AND
MLETAL FINIillSHIN AND METAL COA\TING; INDUSTRY
A1n ap~plication hav~inga beenl duly made pursuant to andr in full
compliance with the provisions of Title I: of the National Indus~ltriall
Recovery~ Act, approved Junne 16C, 1933, anld inr necordafnc- e with the
prov'isions of Section 1. of ALrticle VI71 of the Basic- Codetl for lthe
Fabricatedl Metal Ptrodlucts Manulfacturing and Mietal F~inishing
and Metal Coating Industry, approved Novembler 2, 19~33. for ap-
p~roval of a Supplemetntary C~ode of Fair Completition for the Flex~i-
ble MietnI Hose and Tuibing~ Maniufacturi igr Industr~y, and hearingll
havig ben ulyheld ther~eon; and the annexed report on saidi
Su\in en.~Lpplemlent a 1Svry ode, containing findings with resp~ect thereto, hav-
ingr been made and dlirctedl to the Prescidecnt:
NOW.V THIEREFORE, onl behalf of thne Presidntlt of the Un'litedl
States, I, Hug~h S. Joh~nson, Adm~iniStrator) for Industrial Recovecry,
pur'sunnt to nuthiority vested in rne by Executive Ordersr of the
President, including Exetcutive Order No. GM3S-A, dated Decembirr
30, 1933. andc otherwise; d6o hereby inlcorplorate by reference said
annexedl report and do find! that said SupplemnenturyS Code compliejs
in. all respects with the p~~iertinn provisions anld wsill promol'te the
policy andl purposes~ of said Title. of said Ac~t; andi do he~reby orderlc
th~at said Supplementltar~y Codle of Fair Comlpetition be and1l it is
sereby approved; pr1ovided. how~r\evr, that the pr1ovisions of ArticleI~
VII, Sectio~n 1, insofar as thecy pr1escribe a wa1iting per'iod' between~ct
the filing wvith the Code. Auth~orit~y (or sulchT agncy as mla! he
designated in the Code) andc the effective dante of price lists, as
originally filled und/or rev\isedtl price lists or recvisedl terms andc~ coc-n-
dlit ions of sale, be andl they hereby are stayedl pending~ my fur~thecr
HUGH~I S. J(INSson,
Adminii~s~tlarao for Ilrdusfi 7 trialcorry .
A. R. G;LANCYI,
D~icisionl Adm~rin~ist rator.
621G7"-544~-130-- 34 (115
REP'ORTII TO THE[1 PRESIDENT
T'he WCh-ite Houczse.
SIR : This is a report on the SupDplemlenta~ry Code of Fair Compe-
tition for the Flexible ~etal1 Hose and Tubing Manufacturing In-
dustry, a division of the Fa`~bricated M~etl- ]Products Manufacturing
and Metal Finishing and Mectal Cloatingr Industry, the hearing having
been conducted thereon in Wa~shington, D.C., January 23, 1934, in
accordance with the provisions of Title I of the National Industrial
The Flexible Mettal Hose and TPub~inr Maiznufcacturing IndustryT,
being truly rep~reselntative of this division of the Fabricated Mettall
Products Mfanu f~c~turing~r and Mectal Finishing n ea otn
Industry, has elected to avail itself of th~e option of submnitt~ing a
Supplementary Code of Fair Practice, as provided for in Section
1 of Article VII of the BIasic Codel, for the Fiabricated Metal PIroducts
Ilrnnulfalcturing~ and Meltal Finishingz and Metatl Codingil Industry
appr~oved. by you on the second day ofd NovembeJcr, 1933.
Hi:snti OF THIE CODE
Article I .-atest: the purpose of the Su~pplementary111 Code.
Article II accurately dcfinles specific ttwrIns employedl~ in the Sup-
Article III. This Industry is a division of the Fiabricaztedt Melcu
Products Manufacturing and M~etal Finish~ing and Me~.tal Conltinlg
Industry andc thle labor provisions of its Bazsic Code, as approved'cl
November 2, 1933, are~ the labor provisions of this Suppki~llnentary
Article IVT cstabrilishe a Supplementary Code Authority consist~ing
of six (6) members elected by the members of the Indutry~t~ at a
meeting called by the SupplmcllentaryT Code Authority, of which one
shall be a non-mrembe~rl of the Flexible M/et~al Hose and1 Tubing In-
stitute, and gives the Admllinistrator the authority to appoin-t onze
additional member without vote and providers miachinencry for ob~tain-
ing st at ist ic- and the administration of the Supple mncnnl' to rode.
ArLticle V sets forthl the cost. accountingr procedure to be used by
the Industry upon the approval of the Ad~cministrator.
Article VI provides against selling products at less than cost
to the seller.
Article VII p~rovides for the filing of price lists and discount
sheets with the Supplementary Code Authority.
Article? VIII sets forth. the unfair trade practices of this SuLpl-le-
mnentary Code wvhich ha~s been especially designed to offset unfair
competition in this division of the IndusItry.
Art icle IX provides ag i nst monopoly ies anld monopolistic
Article XY conltainls the mandator~(,Iy pro'visionll S contalinedC inl Section
10 (b) and also proideis foir the Isubmisioin of pr~oposedl amendm~entss
to thle Supplementaryiita Code.
~Art icle X reccognilzes thiatpiee in~~crases be limlitedI to actual
add~itio~nal incrreases in the seller s costs.
Articlec XII states: ther effectivec date andi dur~ationl of this Sulpple-
Thel~ Deputy Administrator in hlis final report to me on said
Supple menIlt ary Code hai ng found as herrein set forth, and on the
basis ofi all th~e pr~ocedcing~s in. thnis mlatter :
I: find' that:
p0(a) Said Supplementaryl Code is wepll designed to promote the
polcis anmd purlposes of Ttle I: of thle Natio~nal Indrustriarl Recovery
Act, inc~ludcing reml~o\ al of obstruc~itions to thle free flow? of' interstate
and fo~ireln c~onulneree which tend to dimninish~ the amoullnt thereof
and~ wrill yprovide for the genlerl welfare b~y p~romotingf the olrgnli-
zaltio~n of indulstry for the purposes of cooperativi\e ncotionl among thre
tl~rae groups, bly indlc~ing and manintainingr unitedT action of-labor and
mranagemnenltundel ctr adeqate governmlle ntal sanctions and supervision,
bys eliminating un fai r competitive practices, by promotingtefull est
p~ossible utiization of the plresent produlctivc~e capacity of nutis
by' avoiding undue :restric~tionl of production (exc~ept as may be temr~-
porarily Iclirequie), by increasing~ the c~onsulmp~tion of indcusltrial andl
agfricultulral products through increasing p~urchasing power, by re-
ducing~ and relievinrr unemployment by imlproving standards of Ilabor,
and! by otherwise rkhabilitating industry.
(b) Said ]Industry normllally employs not more than 5j0,000 em-
playees; and is not classified byr me as a manjorl industry.
(c) The Supplementary Code as approvedl complies in all repspects
witl the pecrtinlent p~rovi'sions of said Title of snicd AcLt, ilc~luding
without limlitat~ionl Subsection (a) of Section 3, Sulbsection (a) o
Section 7, anl ~Sulbsection (b) of Sectionl 10 thereof ; and that the
applican~t assoelantion is an industrial association truly rcpre~sentaitiv e
of th~e aforesuid Indtustr~y; and that said association imlposes no
ineqluitable restrictions o nadmlissionn to mnember~ship therein.
(d) Thle Supplementary Code is not designedl to and will not
permit mioniopolies or monopolistic practices.
(e) Thle Supplemlent ary Cfod'e is not designedI to and will not
eljiminate or oppress small enterprises anl wJill not operate. to dis-
crimiinate against them.
(f) TIhose engaged in othr steps of th economicc process havec
not been decprivedl of the right to be heard prior to approval of
said Supplllementary Code.
For these reasons, -therefor~e, CI have approved this Supp~lemntaryl~
SU3PPLEMETINTARY CODE OF~i FiAIRE COMPtETIITION FOR
TH-E FLEXIBLE MCETARL H-OSE ASND TUBING MIANU-
A DI\'ISION OFE THE FAHIRICA\TLD METAL PRODUCTS MANTUFACTURING AND
31IET.\L FINISHING AND nIETA~L COATING INDUSTRY
TIo 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 Flexible Me~ta~l ]Hose and
Tubing Mi/anufacturingr I~ndustry, pursuant to Article VI of the Basic
Codte of Fair Competition for the FIiabricated M~etal Products Manu-
falcituLli lr ng J and~f Mea Fi`nfishingr a~ndr MeTFtal CoaRti;ng Ild ust ry, approved
by the President of the Unit~ed S~-tates on the second day of November,
1933, and the provisions of this: Supplementazry Code shall be the
standard of fair comp~1-etition for the Indlustry and shall be binding
upon every member thereof.
AhRTICLE II FNIIN
Sce.'I no 1. The term FIlexible Mctal Home~~ andi Tubing Manufac-
turingr Indiustry means the manufacture for sale of Flexible M\etal
Hf~ose or F~lexsib~lle Metal Tubing andl/or Am~rerican Gas Associatio nl
flexible gras (illumintatingf ) tubing and/or gasoline and oil feed lines
having a flexible metal t~ubing6 lining, togretherl w~ithl couplings or con-
nections commonly used wvith any of the above and/or couplings for
cotton covered rubber-mletal gasoline hose and the sale thereof by the
marn uflc~turer of such p~rodluct as a finished article as d~istinguished
from sale thereof as an incidenltal part of some other article or devise.
Nothino- in this section shall be cocnctruledl to embrace flexlible metal
tubinS lin ed, rubber coveredc~l and/or cotton. jacketed hose of the type
listed by the U~ndrwtIriterrs Laboratories Inc. and ordinarily used for
the co-,n veyin rlof gasoline, oils and solvents or for paint spraymng.
SCErnow:, 2. The te~rms ";Act ", P~resident and "At~dministrattor "
ulsedl herein shall mean resp~c~ti-vel~y Title I of the National Industrial
Recovery Act, the Presid~ent of the United States and the ALdminis-
trator for Industrial Recovery.
SECTION 3. The term "' member of the Industry as usedt hlere~in
includes but wvithrout limitation any individual, partnership, asso-
ciation, corporation or o~ther form of enterprise~ engaged in the Indlus-
try either as an employer or on his or its ownn behalf.
SECTI~ON 4. Tfhe term "I Basic Code as used herein. is derfinedl to
mean the Bazsic Code of Fiair Competition for the Fabrientte M~etal
Products Manulfacturing and Metal Fiinishing and Maetal Coatings
Industry as approved by the ]Presidecnt of the United States on. the
secondjlc day of November, 1933.
SECTION 5. The termn emplloye~r as used herein includes anyone
by whomcll anyl suchn emplIloyee is compn.-ated'c~i or empl~loyed.l
S;ECTION 6. Ti10 ~teri'll em plOVlO?' C R S Ilie(1 herein includes anyone
engagedl in the TInd1uhfty in. anry cpneity receivingr compeinsatio~) n for
his ervic~e, ir~r~esp~lective of the nature or mleth~od of paymeicnt of such
SECTION 7. Tile tcrinlC Sulplementaryy COde Auithiority as us~ed
herein menlP11 the? agency which is to aIdminister this Su~pplllementary
Code as h~ereinafter pro~viledl.
SEC'TION 8 The term11 "Institute is derfined to mlean the Filexible
Metal HIome anid Tubing Inst~ituite.
SEcTIOs 9. Tle fterm '" ColiiidentilR Agent "S 11se Iletell I Se~e i iute-
fined to mean31 the imnportial agency designatedl by the Sulpplementalry
SECTromN 110. Thle termr "Federation~" as usedt hlereinl is dlefined to
mecan the Fabr~iented Mretal Products F'ed'eration or its successor.
SEcTIrON 11. The Supp~~llementary Code~ Committtee is the comn-
mnittee appoinlted7 by th~e Flexible MIetal H-lose and Tubing~ Institutie
to p~reent this Supplemuentary Code.
ARTICLE III-E;LMPLOYM'ENT PROVISIONS
This Indu~rstry~ is a division of the Fabricat~ed Mletal Produlcts
AlIanufnrt~ur~ing and MeTtal Finlishingr and MeQtal Codningr Indlustry
andc without limnitation the wrage, hour andi labor pro.visions in
Ar~ticl ~III of its Bas~ic Code as appIrov'ed by the Pr~esident, November
2, 1933, includling Sec~tion 1 of said Article III, by which the pro-
visions of suibsections (1), (2) andc (3) of Section 7, (a) of T'itle I
of the Alct are mlade conditions of this Codle, are specifically incor-
porated hcr~ein and made a part hereof as the wage, hour and labor
p~ov-isions ofl this Supllementaryl~ Clode.
ARTICLE IV-ORGANIZATIOIN AND ADMINISTRATION
SECTIONT 1. During the period not to exceedsixtly (60) days follow-
ing? the effc~tive date, the Suplemeln~ntary Code Commnittee of the
Indutry9l~\ shall constitute a TIemlporanry Supplementaryr Code Au-
-thority until th-e SCulppt~lementary Cole. Authority is elected. IThere
shall be colnstitulted within thle isity-day period~ a Su~pplement aryy
C~odc Aulthorityr conscisting of six memibers to be elected by the memn-
bers of thle Ind~ustry at a mleetinga called' byr the TemploraryS Sup~-
p~lement uryI Codle Auth orit.y, uplon ten days' notice sent by reg~ister~ed
mail to all mnembers of thle Industry whlose names mayT be alscertained
after diligent search, w~ho ma.y vote either in, person or by proxIy.
Trhe members of the Supplelemntaryy Code Authlority first, elecited
shall serve until the following annual meeting of theIc~nstitute, and
thereafter, members of the LSu1pplementaryr Code Aulthority shanll be
electedl at. each annual meeting~ of t~he Institute to serve until the
follow~ing annual meetings. Thle members of the Supplemlentury
Code Authority shall be elected in thle followpingi manner:I
(a) Fiv-e mremlbers who shall be members of the Institute, by a
majority vote of the mlemlbers of! the Institulte present inr person or
by proxy, each member to have one vote.
(b) One member wyho is a member13C1 of this ICndustry, but not a
mlember of thle Institute to be selected and elected by the nonmemn-
bers of the Institute present in person or by ,In-ex,s each member to
hal~ve one vote.
In case the nlon-mremberel s fail to elect the non-m~ember as herein-
above ~r~ovidedc, thre Adrministrator shall appoint such non-member
fromn a list of four non-members to be furnished byI the Confidcential
A vacancy in t~he member-hipcll of the Supplementary Code A~u-
thority mnay be filled by a majority vote of the remau~ining members
of thec Suplementne~it~ 1y Ciode Aiuthiority, provided, however, thatt the
representation as set forth in Section 1, Subsections (a) andl (b) of
this Ar'ticle shall be manintainedl.
In addition the~rto thle Adminict 1;tratr may appoint a membrliL1 to
the Supph-inen!t: ary Code Authority wvho shall be wvithlout vote and
shall serve without expense to the Industry, unless the Supple-
mentary Codec Aut~hority agrees to pay such exspense. The recpre-
senit alt i \- who many be appointed by the Adm!!i nIistrator~i sh-all be given
reasonable notice of and may~ sit at aill mee~tings of thle Supple-
mentaryJ C'ode Aiuthority.
SECTION 2. Anly ~Associationl/Ins~t iute di re(ctly or indirectly par-
ticipantingi in thle :--let lion or activities of the Su~pprlementary Code
Ant~ilhority shall (1.) impose)L~ no inequliitabl~l' restr~c~ictions on miember-
ship, and (2) shall Inhaniti to the Administrator true copies of its
Ar~tiecls of A2-I Ic.i; t lon, By-Latzws, Regrulationrs and any amendments
when made thnereto, together with such information as to membe~.r~l-
ship, olrgni: st.ion, and activities as may be necessary to effectuazte
thle purposes of the Aict.
SEC;TIONu 3. In1 order thlat. the Supph-Ill:netr~y Code Authority shall,
at all times, be trully representative of thle Indusry~l3 and in other
respects comply with the provi'i"ons of thle Alct;, t~he Adminilistl'lratr
mal~y pre---r''ibe such H-earings as he mnay reasonably deem proper;
and, ther~-;Efter, if he shall f-ind thact th~e SupphlI1~l~ Intoy Code Author-
ityv is not truly repre'sentative or does not in other respects comYply
w~ith thle pr~ovisions of thert Act, may require renova(i\.l of anly or all
of rthe members thereof and :Ilnyr make!C appropriate311 mlodificaztionl or
modifications in the met~hod of .ele~c~tio: n of the Supplementary Code
See:.TI.nw 4. Every~ employer shall provide for th~e safety and health
of em~ployeel-, during the hours and at the places of their employm~~en~t.
Standards for safety and health shall1 be -.ubmlitted by thle Supple-
mentar~y Code Authority to the Administrator within six (6) months
after t~he effective date of the Supplemzentary Codec.
SCECTION 5. All members of tee Industry aire subject to the juris-
diction of the Supplemenltary Code; shall be entitled to participate
in and share the benefits of the Supplementary Code; shall be en-
titled to vote in the selection of members of the Supplementary
Code Authority as providedl in Section 1 of this Al~rticle.
StenowN 6. I1t; b~inlg found. n~cessa~ry,~ in order to support thle ad-
ralinistra!tion of this Supplemrentary Code and to mainltainl the stand-
ardss of fair competition establishled by this Suxpplemlelntary Code
and to ceffectuaite- the policy of the Act, the Supplementary Code
Authority is authorized, subj ect to the approval of the Administrator:
(a) To incurr such reasolnable obligat:ions~ as arec necessary and
prope~r for the folereoilin p~lllOn-pose and1 to0 meeCt suIChI Obliga~tionl S out
of fundrs which1 may be r~aised~ as here~tinufferl provided anld which
shall be hleld in trust for the pur11poses of the Suppilementury Codie;
(b) T'o submrtit to the Aidministen;tor for hLis alpprovnl. sublj~c~t to
such~ notice andi opp~ortunIity to bec heard as hne may deeunl ne~cesary,
(1) an itemnizedr budgrlet of its estima~:ted~ expensesi for the? foregoilgr
purposes, and (2) anl equ~itablel basis ll(, upon wich the funds necessarily
to support such. bulgret shall be c~onltribulted b~ :membert: of th~e
(c)str Aicf~ter such? budiget a~ndt basis of conltribu~tion have beenl ap-
proved by the A~dministrator, to deterrminle and secure equitable con-
tribution as above set forth by all such mem~lbers of th~e Industry,
and to that end, if necessary, to institute legal p~roceedingsr th~erefor
mn its own name.
SEenlos 7. Only)7 membeI~rsi of the Industry c~omlly~ing wvith~ the
Supplemnenta~ry Code and contribution~ to th~e expenses of its admllin-
ist~ratfion as prov\idedt in Section 6 hereof shall be entitled to partici-
pa"te in the select inn, of the3 membersL~'' of the Supplementaryr Cod~e
Aluthoril~ty as provided in Section t hereof or to rece~cive~ the benefit of
its volunrta~ry a-ctivities~ or to malke: use of anly emblem or i~insigni of
the~ Nau.ctionl RcoveryL'' 3 Administration.
SEl::rwvci 8. N`othling' coitainedf inl ths SupprTl.lltlementary Code shall
cons~titulte the em~nber~s of the Supp~lemelntaryy Code Au~thorityS palrt-
necrs for anyT purpose. Nljor shall anly mem~n b~r of the Supplementaryt~ l~
Code Aulthl~ority be liable in any mn~nelr to anyone for any act of
any\ other memnber,, officer, agent or empk''yee of the Supplementaryy
Codle Aulthor~it y, norj shall any1? member of the Supplem~entary Code(l
Autoriy, xeCisn reasonable dlilig~ence in t~he conduc~llt of his
dluties herreundelr, be liable to anyone for anly ne~tion or aml~iwicnn to
act under this Supplemelllntry Code. except for his owsn wilful
mnal feasainnce or non-feasance.
SECnos 9. Thle Supplemellntary Code Author~ity shall als~o fr~om
time to time furnish to the Basicl Codte Aulthorityi, designatted in said
Balsic CodeIC SuIch information as: mlay be required~ to be fuirnish~edl
under terms1~ of said Ba~sic. Code.
SECTIO 10. The Suppillementary Cod~e A~uthority shall have all
the powe~rs andl cuties whlich shall b~e necessary or proper to enable
it to fully admninistetr this Codo andl. to effe~ctuate? its purpose.
Without limitation to th forecgoingI or any' other powers or duties
pr~ovidecd for in this S:upp'lemetntar~y Code, the SuppleTmentary Code
AuthoritV shall havec the followings ~specific du~ties, subject to such
rules anti regulations as the A~dmlnistrantor may prescribe.
(a)l To adop-l-t, By~-TLatwsndln Rulest and~ Regulations for, and kep
records~ of its pr~ocedure and for the administration of the Supp~le-
mentary Codec under such rules and :regulations as many be ~pre-
scribel by the At~dministrator.,
(b) Thie Sujlpple~mentary Coder Authority- shall des~igrnate a Con-
fidential Agecnt wrho .hall co~llect all danta necessary for the admin-
istrationi of this Suppllemenjrtury Code. Sulch Confidecntial Ag~ent
shall hlold all datal ini strict, co~nfidcnce e~x(cept as is needed for the
ad~minis~tratio n of this Supplementaryl Codle.
(c) To obtain, fromt members of the Indtustry through the Con-
fidential Agent such information and reports as are required for
the administration of the Supplementary Code. In. addition to in-
formation r~equiredi to be submitted to the Supplementary Code
Authority, mnembers of the Industry subject to this Supplementary
Code shall furnish such statistical information as the ASdminis-
trator may deem necessary for the purposes recited in Section 3 (a)
of the: Act to such Federa~l and Sta~te ag~enc-ies as he may designate;
providedc that nothing in this Supplemnentary Code shall relieve any
member of the Industry of any existing obligations to furnish
reports to any gove\rrnmelnt. ''genlcy. No individual report shall be
disclosedl to any other m~emb1ler of the Indaustry or any other party
exc~ept to suchn other governmental agencies as may be dlir~c~tedl by
(d) To use suchl trade associations andl other neiencies as it deems
prloper for the carrying out of any of its activities provided for
herein, providedl that nothing herein shall relieve the Supplemnentary
Code Authority of its duties or resp~onsibilities ulnderl this Supple-
mlentary C'ode a~nd that such trade associations and agnblc.ies shall
at all times be subject to and comply with the provisions hereof.
(e) To mnakre recommendations to the Administrator for the co-
ordination of the Aidministration of this Supplementary Code with
suchl other code c, if any, as may be r~elated' to the Industry.
(f) To' secure from members of the Industry an equitable and
p~ropor'tionate~ paymelnt. for thie reasonable expenses of manintaining~
the Suplplenwatar:1Iy Code Authority and its activities.
(ga) To coopertel~c with the Administrator in regulating the use
of anly N.R.A. insignia solely by those m~rllember of the Industry
who have n--enlted- to, and are complying with, thlis Suppllementaryy
(h) TIo recommend to the Aidministrator further fair trade prac-
tice provisions to govern mnembllers of the Industry in their relations
with each other or with other industries and to recommend to the
Admlinistrator measures for industrial planning, including stabili-
zation of employment.
S~Eems(.~ 11. If thle Admlinistrator believes that any action of the
Supp~l'lmentury' Code Authority or any agency thereof is unfair
or unnjust or contrary to the public interest, the Administrator m~ay
require that such action be suspendced to afford an opp~ortu~nity for
investigation of thne mler~its of such action. Further action by such
Supp'~~leen tar iy Code Authorit or agency regarding the matter
comlplained of mayr be taken. approved by the Administrator but
shall not be taken if disapproved" by the Administrator within thirty
days of notice to him of intention to procc-ceedl with such action.
SEe-Cno 12. Any or all information furnished to the Confidential
AgenSt pursuant to the provisions of the Supplemzentary Code by
any corporate member of the Industry specifically assenting hnereto
pur.wan"t to the provisions of this Suprlplementaryi Code shall be
subject to checkrin~g for the purpose of verification b~y an exa~milnaion
of thle pertinent books and accounts and records of such. membelFr
by th~e Confidential Agent or by any accountant or accountants or
other person or persons designated by the Supplementary Code
~Authority (none of whom shall be connected with anly member of the
Industry) and subject to disapproval by the Admlinistraat orI andl shallU
be so checkedt for such purpose if thle Supple1~mcntary'S C"ode Auhr or-
it shall require it. The! cos of sech such rexamina~tion shall b
treated as anl expense~ of admliint:ir tering 11 Supll anentur'll ay Code.
ARIcLE V c-CCO UNTING AND CONTING1SC
With respect to that~ portion of hiis p~rodct~ii which is w-ithin the
Inductlry, every member of the Industry shiall us~e an aIccounrting
system for determiningc his allow~able cost wh.lichl conforms to the
principles of, andl is at least as detailed andi complllete as, thre unifolrml
methodl of accounting, and the uniforms merthocd of costingl, to be~
formulated by thle Supplementary Code Aulthority and~ approved by
the Administratorl with1 such variations therefromn as may be re-
quired by the indciviuall conditions affc~cting~ any membr or group
of members of the Indlustry, and as may be apprc vedt by! the Sjupp~le-
mentary Codeo Authority and the Admiiinist ratori.
ARTCLE VIZ-SE~~IMNG BELOW COSTII
No memberl of this IndJustry shall sell or echaclinge any product of
th Industlry, at a, price, or upon term-;~ and conditions, wrPhich. will
result in the purchaser paying for thre goods received:, less than the
allowable? cost there1of to theo srlelle, dterminedl in a~c~cordsnce. w~ith a
uniformly met;hodi of costing as providedci in Arilticle V7, provided', howc-
ever, that droppedr lines, or second~s. or inveltor~ie s which murst be c~on-
verted into catsh to meet emlel~rgncy need~s mnay be disposed of by anty
member of the Industry, at any price andl on any terms andl condi-
t~ions, but only if such member o~f thze Induzstry not less than two
wneekrs before such dlisposnI, has filed with the Supplc ~~ementary Code
Authority, or its confidlential agent, a s-tatemlent in writingr, setting
forth the facts of, and reasons for, such proposed disposal, and proc-
vidled further, that. anyr member of thie Industryr m~y sell below his
costs in ordler to meet competfitive prices that do not violate. this Sup-
p~lementary Clode filed~ in accordance with the provisions of Arieo
VI[I of this Suppltementary Code, or to mree! competition froml p1odl-
uicts of equivalent design, charzcter, quaity, or sp~ecifications, mianui-
factured outside the United States, provided that h~e has first so
reported to the Supplllementury Code AulthorityS and in such report
has cited thle competition whlich causedl him to take such action.
AunTcLE VII-~PmerI LISTs
SECTIoN 1. If thle Supplementary Code Aulthority determines that
it has been the ge~nerally r~ecognizedl practice inl this Industry, or in
any branch or hub~division thereof, to sell certain products of this
Industry on the basis of net pr1ice lists, or price lists anld dliscoulnt
sheets, each m~emnber of this Industry manulllfacturlingI andl selling
such products shall, within ten (10) dlays after notice of such deter-
mmnation, file with the SupplementaryS Codle Authlority through its
Confidential Agent a net price list, or price list and discount sheet,
inl such formI1 aind for such products as the Supp~lementary C'ode
Authority many p~rescr~ibe andr th~e SuplenwnlllltaIy Code Authority
through its ConfidenltinII Agent shall immediately send copies thereof
to all known manufacturers of such products. Such price lists shall
be available to all interested buyers at the office of the Confidential
Revised price lists and/or discount sheets and/or all other con-
ditions of sale mnay be published and filed from time to time there-
after with the Supplementaryr Code Aiuthority through its Confi-
dential Agent by any member of this Industry, but such r~evisedl
price lists and/or discount sheets and/or all other conditions of sale
shall be filedt with the Supplemnentary Code authority through its
Confidential Agent and shall become effective five (5) business days
after actual receipt by the Confidential Ageent. Copies of such r~e-
vised.price lists and/or discount sheets and/or all other conditions
of sale, with notice of the effective date thereof, shall be immediately
sent to all known manufacturers of such products and shall be? avail-
ableP to all in~teres~jter buyers a~t t~he office of t~he Confidential. A gent;
and any member of this Industry may file, if he so desires, revisions
of his price lists and/or discount sheets and/or all other conditions
of sale, which shall become effective at the date when the revised
price lists and/or discount sheets and/or all other conditions of sale
first filed become effective, provided that he shall not establish prices
lower, nor discounts greater, nor conditions of sale more favorable
than those contained in the revised price lists and/or discount sheets
and/or all other conditions of sale first filed.l
SIECTION 2. If and when the Supplementary Code Authority shall
de~termine that in. any branch or subdivision of the Industry, not now
selling its p~ro~duct on the basis of price lists, with or without dis-
count sheets, with fix-ed terms of sale and payment, the distribution.
or marketing conditions in said branch or subdivision are the same
as, or similar to, the distribution and marketing conditions in a
branch or subdivision of the Industry where tihe use of price lists,
with or without d~isccunt: sheets, and other fixed conditions of sale,
is well recognizedd, and where the use of price lists, with or without
discount sheets, with other .fixedl conditions of sale should be put
into effect in such branch oi r sbrlivision, then each mnanufac~tur~er of
the product or products of such branch of subdivision shall within
twenty1S (20) days after notice of such determination, file with the
Supplementary Code Ahuthority or its Confidential Agent, net price
.lists or price lists and discount sheets, containing all other fixed
conditions of sale, and such price lists and/or discount sheets and/or
other fixed conllditions of sale may be thereafter revised in the manner
herein atbove provided; provided, however, that the Supplementary
Code Authority shall makre no determninatioon to place any product
of the Industry (not now on a price list basis) on a price list basis
as provided in this Section 2 of Article VII unless twNo thirds of the
mlembersl of the Industry who are at that time engaged in manu-
facturing such product shall affirmatively consent that such. de-
t~ermination be made.
SECTION 3. Each member of the Industry shall furnish the Sup-
plementaryy Code Authority for distribution with such number of
copies of his price lists and/or discount sheets as the Supplementary
Code Authority may prescribe.
1 See paragraplh 2 of order approving this Code.
SECTION 4. NIJO member~PI Of the Industry shllsl sell, dlirectly or indli-
rectl, by any meansri~ whatlnoeverc, anyl pr~od~ct of the IndulzilStr 'overed'~
by provisions of this Airticle V'II L1t a p~rice3 or at dtiscoun~lts, or on~I
other condritions of sale other thanll those! provid~ed in his own. currenllt
net price lists, or pice lists andc discount sheets.
SECT~oVION .ThSu le ntyCoeAtrtyhllhvpw
to invest~igate, subject to such~ rules and rreglatio ns a7s may be~ pr-
scrib>e d by the Admninistr~ator, all complaints filed bone member
of the In uste~ n against ano(~!ther membellrI of t-he IndusLtry.'
In addition to the Unfair Tradel P1ractices covered~ by Article V
of the~ Basic Codle (except Sec~tion A which is .not mad~e a part of
this Sucpplemllenta ryy Code) and for all purposes of this; Suplplemeln-
tar Coder t~he followpingr described acts shl~l constitute unrfair prac-
tices. Anly membelr~t l of tirs InduI~st'y w~ho sha~ll dlirc~ctlyr or indirect~ly
through any officers, employee, agent or representative use or emnploy
any of such unfair prctic~es shall be guilty of a violaltionl of this
SurroT; 1. Defaults: Neg~lect by a memllber of the Industry to en-
force contracts, or variat~ion from the terms or conditions of cozi-
tracts wh;3en establis-hedl, in ordler to influence sales, or as a mIleans:- of
evading price. schedulles, is'forbtiddel n as unfair competition.
SrEnosO 2. rLump11 Sum1 Bidd~ing~: It is an unfair mlethod: of comY-
petition to quote a total pr~icle, or a lump sum, on a vlehedule of prodl-
ucts or materials, either without indica~ting in such bid the net price
of each individual item or by quoting a total prices" on any ~other
basis than the total of the pubihduipres An aaio
therfro byaddtio ordedction, except on thle samie basis of the
p~ublished unit pr1ice is also an. unfair method of competition except
that a price for a complete assembly, namely, a section of hose w\ithl
couplings: attachedl, is perm~issib~le.
SECTIoN 3 Samples: It is an unfair method of competition for
any manufacturer to ship' and delivery: on anyr order which wmas ac-
ceptedl based on namples submitted, anyr product or material not; in
strict accordannce with, the samples on, which the order was, based.f
SEctrox 4. Interference with Ainothler's Contracts: No member of
this Indlustry shall knowsingly attempt to induce the breach lof anly
written contract between a competitor and his employee, r'epresenta-
tie, agent or distributor, customer or source of supply; nor shanll
any such mecmber know~inglyr interfere within or obstruct the performi-
ane of suIch contractual duities or services. This clause shall not be
constrluedl to apply to contracts of employmxent.
SECTION 5~. Classification: The falsei classification of any product of
this Industry for the puirpose of" securing freight rates lower than
would apply to the p~odu~c'ts if properly classifiedr, shall b~e an u~nfair
method of comp petition.
Stenros G. Cminatioinni Sales: No membel~r of this I~ndustryr shall
sell or offr to sell conunodlities other than products of this Industr~y
for thec purpose of influenlcing a sale, at prices below the invoice price
plus all incidental costs of such products. If and wnhen the products
of this Industryl are sold in combination wvith products of other in-
dustries, the invoice must clearly show the unit price for all articles
SC~cenIoN 7. Expo~rt/~ T,~radr.--(a) No provision of this Code relating
to prices or terms of cellinlg, shipping or maLrketing, shall apply to
export trade or sales or shipments for export trade. Export
Trade shall be as defined in the Export Trade Act adopted April
(b) Selling for export by any member of thle Industry any product
of the Industry which is not actually exported, as hereinabove de-
fined in subsection (a) of this section shall be deemed a violation of
this Supp:lemtlienta ry Code.
SECTION 8. Terms~f of Paymzent.--(a) Terms of payment shall not
be more favorable to the purchaser than net cash thirty daygs or one
percent dlis-count for cash for payment as follows: Bills dated the
first to the fifteenthz inclusive, if paid on or before the twenty-fifth of
the month; bills dlated the sixteenth to and including the last day of
the month, if paid on or before the tenth of the following months.
Bills will be dated the day of shipmlrent. On accounts not paid within
f~orty-five days from the end of the month inl which bills are ren-
dered, interest will be charged at thle ra~te of sixr percent or the legal
maximum, whichever is lowe~r per annum beginning on the first of the
montth following th-e date on which paIyment is due, but no interest
lmou~nt~ingr to less tha~n one dollar shJhalb char~ged. Bills for such
in~tcrst.t will be rendered mo~nthlyr.
ARTICLE IX ---AONOPOLIEIS
No provision of this Supplementarly Code shall be so applied as
to permit monopolies or monopolistic practices, o~r to eliminate,
oppress or discriminate against small enterprises.
SECTION 1. Th~is Supplementary Code an~d all t~he provisions
thereof are expressly made subject to the right of the Pres~ident, in
accordance writhl provisions of subsection (b) of Section 10 of the
Act, from time to time to cancel or modify any order, approval,
licetnse, rule or r~egulation issued under said Act.
SECTION 2. This Suplementary Code, except as to provisions re-
quired by the Act, mayT be modified or amended on the basis of
experience or changes in circumstances, such modifications or
amendments to be bas~ed upon application by the Supplementary
Code: Authority or other Representative group~ within this Industry
to the ~Administrator and such Notice and Hearing as he shall specify
and to become effective and to be a part of this Suupplementary Code
on approval by the Atdministrator.
ARTICLE XI--PRICE INCREASES
Whereas the policy of thie ASct to increase real purchasing 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 mray be required to meet individual costs
should be deln ved~, Irit whcn made~. such'l inrcrease~s shlouldl~ afor a7s
possible, be limritedl to natua~ll ark~litional~l increases inl the seller's endi~s.
Thiis SuppI~leinentury~ Codec chll I brcomeii effet i ve( on 12:01 o'!lrclc
Eastern Standard~ T'imel on1 thle tenth day alfterl it is aplproved by thle
1Pr~esiident and1( shall con~rtinule in effee~ct, until June! 16, 1933T, or ~the?
earliest dattei pr~ior therto, on whlichl thle Pre.-sidenlt shall, by procla,~2-
lnation, or thle Cong-1ress shall, by joint re ~clution,, declar~e that the
emeltrgencylc re~ognizedl by! Section 1 of Title I of the SEtionlal
Industrial `Recovery Act has endedct.
Reg~ist ry No'1. 11-llo-UJ-.
UNIVERSITY OF FLORIDA
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