Supplementary code of fair competition for the cut tack, wire tack and small staple manufacturing industry (a division o...


Material Information

Supplementary code of fair competition for the cut tack, wire tack and small staple manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on July 6, 1934
Portion of title:
Cut tack, wire tack and small staple 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:
Tacks -- United States   ( lcsh )
Staples and stapling machines -- United States   ( lcsh )
Fasteners -- 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. 1114-14."
General Note:
"Approved Code No. 84--Supplement No. 40."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952730
oclc - 63655198
System ID:

Full Text



1_1 ~ ~_I__

I' 'I
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cenia

Approved Code No. 84--Supplement No. 40

Registry No. Ill4--14








(A Division of the Fabricated M\etal Products
1Manufacturing and Metal Finishing
and Metal Coating Industry)




This p~ublication is for sale by the Superintendent of Documents, Government
Printing Office, W'ashington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.

Atlanta, Ga.: 504 Post Offle Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.YF.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Welle Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chlamber of Commerce Building.
Indianspolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kanslas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadlway.
Louislville, Ky,: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225--, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building,
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Frandisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Offce Building.

Approved Code No. 84l--Supplement No. 410



As Approved on July 6, 19341



An application having been duly made pursuant to and in, full com-
pliance with the provisions of Title I of the National Inldustrial
Recovery Act, approved June 16, 1933, and' in necordance with the
provisions of Section 1 of Article VI of the Basic Code for the Fabri-
cated M~etal Products M~anufactur~ing and Mletal FinishingI and MIetal
Coating Industry, approved November 2, 1933, for approval of a
Supplentar Code of Fair Competition for the Cut Tack, W~ire
Tack, and Sall Staple Ma~nufacturing Industry, and hearing
having been duly held thereon; and the anniexed report on said Sup-
plementary Code, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the Presidenlt of the United
States, I, Hugh S. Johnson, Admiinistrator for Industrial Recovery,
pursuant to authority vested in me b~y Executive Ordlers of the Pres-
ident, including Executive Order N'o. 6543-A, dated Decemnber 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do findl that said SupplemientarS Clode complies in all re-
spects with the pertinent provisions and will promote the policy and
purposes of said Title of said Act; and do hereby order that said
Supplementary Code of Fair Compet~ition be and it is hereby ap-
proved; provided, however, that the provisions of Article VII, Sec-
tion 1, insofar as they prescribe a awaiting period between the filing
with t~he Supplementary Code Aut~hority (or such agency as may be
designated in the Supplementary Code) and t~he effective date of price
lists, as originalilly fiU led n/lor revised price lists or revised terms and

conditions of sale, he and they hereby are stayed pending my further
Howc 8. JoHNsox,
Ad ministrator for Indulstrial Recovrery.
Approval recommended :
Division Ad'ministrator.
Jul y 6, 1934.


Thze Wlhite H~ouse.
SIR: TI1lS is a report on the Supplelemntary Code of Fair Com-
petition for the Cut Tack, WVire Taick, and Small Staple Mafnufac-
turing Indlustr~y, a division of the Fiab~ricated~ Metal Products
M~anufacturingi and M~etal Finishing and Metal Coating Industry,
the hea7ringr having been conducted thereon in Washington, D.C.,
Februlary 6, 1934, in necor~dance with the provisions of Title I of
the N'ational Inidustrial Rtecovery Act.


The Cut Tnck~, Wire Tack, and Small Staple Manufacturing
Indlustry Leingi truly r~epresenntative of this division of the Fabricated
MIetal Pjroducts Mlanufactur~ingr andl Metal Finishing and Metal
C'oating Indlustry, has electedl to ava~il itself of the option of sub-
mitt~ing a Sulpplemnent.a ry Code of Fa ir C~ompetition, as provided for
in Section I of Article V'I of the Bansic Code, for the Fabricated
Metal Products M~anufacturi ngr andii Metal Finishing and M~etal
Coating Industry approved by you on the second day of NC;ovember,

Article I states thie purpose of the Supplementary Code.
Article II neeural-tely defines specific, terms employed in the Sup-
plemlentary Codle.
Article III. This Industryv is a division of thne IiFbricated M~etal
Products M~anulfactur~ingr ar~ind Mtal Finishing andl Metal Codting
Industry andi thle labor p'rovriions of its Basic Code, as approved
November 2, 1933, are thne labor p~rov~isions of this Supp~lementaryr
Article IV establishes a Supplementary Code Authority consisting
of five (5) memnber~s to be elected by the members of the Industry at
a meeting called by the Temnporaryr Supplementary Code Authority,
and grives the Admninistrator the authority to appoint one additional
member without v'ote and pr~ovidet s machinery for obtaining statistics
and the adlministration of the Supplementary Code.
Article \' provides for an accounting systemn andl methods of
cost finding and or est~imating.
At~icle V'I covers the selling b~elow cost provisions but does not
proohibit sales below cost to meet competition.
Article VII provides for the filing of price lists alnd discount
sheets with the Supplem'entary3 Cod~e Aurthority.

Article VIII sets forth the unfair trade practices of this Suppe
ment~ary Codes which has been especially designed to offset unfi
competition in this division of the Industry.
Article IX provides against monopolies and monopolistic practices.
Art.icle X contains t~he mandatory provisions contained in Section
10 (b) and also provides for the submission of proposed amendments
to the Supplemnentary Code.
Article XI, recognizes that price increases be limited to actual
additional increases in the. seller's co~st.
Article XII states the effective date and duration of this Supple-
mientary Code.

The Assistant Deput~y Admlinistrator in his final report to me on
said Supplementary Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I1 find that.:
(a) Said Supplementary Code is well des~igned to promote the
policies and purposes of Title I of the National Industrial Recovery
Act., including removal of obst.ruct.ions to the free flowF of interstate
andl foreign commerce which tend to diminish the amount thereof
and will prvd o h general welfare by promoting the organ-
izat~ion of rod o hindustry fort the purpose of cooperative action among
the trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting the
fullest. possible utilization of the present productive capacity of
industries, by avoiding undue. restriction of production (except
as may be temporarily requiredd, by increasing the consumption
of industrial andl agricultural products through increasing purchas-
ing power, by reducing andl relieving unemployment, by improvmng
standards of labor, and byl otherwise reha.bilit~ating industry.
(b:) SaEid Industry normally employs not more than 50,000 emn-
ployees; and is not classified by me as a major industry.
(c) The Supplementanry Code as approved complies in all re-
spect~s wit.h the pertinent. provisions of said Title of said Act, in-
eluding without limit~ationi Subsection (a) of Section 3, Subsect~ion
(a) of Section 7, and Subsect~ion (b) of Section 10 thereof ; and that
thle applicant Institute is an industrial Institute truly representative
of the afor~essid Industry3; and that said Institute impIoses no in-
equitable restrictions on admiission to membership therein.
(d) The Supplem~entary Code is not designed to and will not per-
miit monopolies or monopolistic practices.
(e) The Supplementary Code is not dlesignedl to and will not
eliminate or oppress small enterprises and will not operate to dis-
crimninate 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
Siupplemnentary Code.
For these reasons, therefore, I have approved this Supplementary
Code; provided, however, that the provisions of Article VII, Sec-

tion 1, insofar as they prescribe a waiting period between the filing:
with the Supplementary Code Aut~hority (or such agency as mayS be
designated in the Supp~lementar~y Code) and the effective date of
price lists, as originally filed and..'or r~evised price lists or revised
terms and conditions of sale, b~e and they her~eby! are stayed pending
my further Order.
)-rcGH 8. JOHNSON,
Jun 6, 1934.




To effectuate the policy of Title I of the National Industrial
Recovery Alct, the following provisions are established as a. supple-
mientary Code of Fair Competit~ion for the Cut Tack, Wire Tack
and Smanll Staple M~anufacturing Industry ursun toe Anrtiled VIea
of the Basic Code of Fair Clompetition frteFbiae ea
Products M~anufacturinga and M~etall Finishing and Mletal Coating
Indlustry approved by the President of the United States on the
2ndl day of Nov~emiber, 1933, and the provisions of this Supplementary
Code shall be the standards of fair competition of such Industry and
shall be binding upon everyv member thereof.


SECTION `1. The termi Cut Tack, W'ire Tack and Small Staple
Mannufacturingn, Indlustry ", her~efter re-feIrred to as thle Industry,
is dlefinedl to meain the manufacture for sale of Cut Tacks, WVire
Tacks, Double Pointed Tack~s and~ Small Staples, manufactured
from fer~oius and. or non-ferrous mietalsi or alloys.
SECTIOIN i). The term employee ", as used herein, includes anyone
engagedl in thle Industry and all persons however compensated,
except a member of this Industry.
S~ECTION 3. The term "i employer "!, as used herein, includes anyone
byI wh-oml anry sulch employee is comnpensated or empyloyedl.
SIECTI[ON 4. Tlhe term "' member of the IndustryI ", as used herein,
includes, but without limitation, any individual, partnership, asso-
ciation,, corporation, or other form of enterprise engaged in the
Industry eithler as anl emp-loyrer or on his or its ow~n behalf.
SE~CTION 5. The terms 'e President ", "Act "!, and "Adcministrator ",
as used herepin, shall mnean respcctively the President of the United
States, Title I of the National Indu;st.rial Recov'ery Act, and the
Administrator for Industrial Recovery.
rSEcn~oN 6. The termrl Basic C'ode"'q as used herein, is defined to
mean the Basic Conde of Fair Competition for the Fabricated Metal
Prouct Maufuturngandl Metal Finishing and Mletal Coating
Industry, as ap~provedtc by the Presidecnt on t~he 2nd day of November,

SECTION 7. The term "' Supplementary Code Authority r", as used
herein, means the agency which is to administer this Supplementary
Code as hereinafter provided.
SECTION 8. The term "L Institute "? as used herein, is defined to mean
the American Institute of Tack Alanufacturers, or its successor.
SECTION 9. The term "' Federation ", as used herein, is defined to
mean tihe Fabricated Alet~al Products Fedleration, or its successor..
SECTION 10. The terml Confidential Agent as u~sedl herein, is
defined to mean the impartial agencyv desiganated by the Sulpple-
mentary Code Authority.
SECTION 11. Thle term Supplementary Code Comimittee as used
herein, is defined to mean the committee authorized to present this
Supplementary Code.
This Industry is a. division of the Fabricated hlfetal Prioducts
1\fanufact~uring and M~etal Finishing and M~etal Conting Industry
and without, limnitaotion the wage, hour,;tc andlabor provisions in
Article III of its Basic Ciode as approv-ed by t~he Presidlent, November
2, 19.33, including Section 1 of said Article III by which t~he provi-
sions of subsections (1), (2) and (3) of Sectio~n t (a) of Title I of
the Alct are made conditions of this Code, are specifically incorpo-
rated herein and made a part hereof as the wrage. 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 Sup~plemnentary Code, the Supple-
mentary Code Committee of the Indlustry who are p-resenting this
Sup~plemnentary Codle shall constitute a Tiemporaryr Sup:plementarIy
Code Authority unt il thle Suppllemle n tarL C'ode! AuthIor~ity is elected.
There shall be constituted w~ithini the sixit~y-day period a Suppleme~n-
taryL Ciode ALuthority consisting of five mnember~s to be elected by the
memlbers of the Indlust~ry at a meeting called by~ the Temporary
Supplem'ent~ary Codle Aut~hority~, upon ten days' notice sent by mail
to all members of the Industry whose na~mes mnay be ascertained~ after
diligent search, who may vote either in person or by proxy. The
members of t~he Supplemlentary Code Authorityl fir~st. elected shall
serve until the following annual meetings of t.he Inst.itu~te, and the~re-
after, members of the Supplemlentary~ Code Authority shall be
elected by the members of t.he Industry at a meeting of the Indlustry
to be! heldl at; t~he timer andl place of each annual me~t~ing of thle
Institute to serve until the following annual meeting. The members
of the Supplementary Code Authority shall be elected in the fol-
lowing manner:
(a) Two members, who shall be members of the Institute and
members of the Industry by a majority vote of all the meitmbers of
the Institute w~ho assent to this Sup~plemecntary Codle pr~esernt in
person or by proxy, each member to have one vote.
(b) One member, who shall be elected f~rom the non-mnembers of
the Institute, by a majorityr vote of thle non-members of the Institute
who assent to this Supplementary Code, present in person or by
proxy, each non-member to have one vote.

In the event that the non-members fail to elect such non-member
of the Supplementary Code Authority, then the Administrator may
appoint. such non-~member fromt a list of four non-members submitted
to him by the Supplementary Code Authority as it is then
co nsti tu ted.
(c) Two members, who shall be members of the Inst~itute, by 51%0
vote of the members of the Institute who assent to this Supplemen-
tary Code, present in person or by proxy, weighted on a basis of
one vote for each 100 tons of actual sales of products of the Industry
made during the preceding calendar year, reported to the Supple-
mentaryv Code Authority, provided, however no one member may
cast more than 25%c of the total number of votes cast.
A vancancy in th~e membership of the Supplementary Code Au-
thority may be filled by majority vote of the remaining members
of the Supplementary Ciode Authority, provided, however, that the
member of the Supplementary Code Authority~ who is chosen to fill
such vacancy shall be selected from the class of membership that
was originally represented by the vacating member.
In additi-,n thereto the Administrator miay appoint a member
of the Supplemnentary Code Authorit~y who without vote shall serve
without expense to the I~ndustry, unless the: Sulpplementary Code
Authiorityv agrees to pay such expense. The representative who
may be appointed, by t~he Administrator shall be given reasonable
notice of and may sit at all mneetmngs of the Supplementary? Code
SECTION fl. Eachl trade association directly or indirectly partic-
ipating in the selection or activities of the Supplementary Code
Authority shall (1) impose no inequitable restrictions on member-
ship, and (2) shall submit to the Administrator true copies of its
Articles of Association, B~y-Law~s, Regulations and anyr amend-
mients when made thereto, together with such other information
as to membership, organization, and activities as is necessary to
effectuat.e the purposes of the Alct.
SECTION 3. In order that. the SupplementaryT Code Authority shall,
at all times be: truly representative of the Industry and in other re-
spects comply with the provisions of the Act, the Administrator
may prescribe such hearings as he may deem proper; and, there-
after, if he shall find that the Sup~plement~ary Code Authority is
not truly representative or does not. in other respects comply with
the provisions of the Act, may require an appropriate modification
of the Supplementary Code Autllhority.
SECTroN 41. It being found necessary in order to support the
administration of this Supplementary Code andl to maintain the
standlardls of fair competition established hereunder and to effec-
tuate the policy of the Act, the Supplementary Code Authority
is authorized;
(a) To incur such reasonable obligations as are necessary and
proper for t~he foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Supplementary Code;
(b) To submit t~o the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemizedi budget of its estimated expenses for the foregoing

purposes, and (2) an equitable basis upon which the funds necessary
support such budget shall be contributed by members of thec
(c) After such budget and basis of contribution have been
approved by the Administrator, to determine and obtain equitable
contribution as above set forth by all members of thle Industryv, and
to that end, if necessary, to institute legal proceed2ing~s therefore in
its own name.
Each member of the Industry shall payL his or its equitable con-
tribution to the expenses and maintenance of the Supplementaryy
Code Authority, determined as hereinabsove provided, and subject to
rules and regulations pertaining thereto issued by the Admninistrator.
Only members of the Industry complying with t~he Suipplementary
Code shall be entitled to participate in the, selection of members of
the Supplementary Code Aut~hority or to receive thle benefits of any
of its voluntary activities or to make use of any emnblem or insignia
of the National Recovery Administration.
The Supplementary Code Authority shall neither incur nor pay
any obligations in excess of the amount thereof as estimated in its
approved budget, except upon approval of the Administrator first
obtained; and no subsequent budget shall contain any deficiency item
for expenditures in excess of prior budget estimates except those
which the Admninist~rator shall have so approvedl.
SECTION 5. Nothing contained in this Supplemientary Code shall
constitute t~he members of the Supplemlenta~ry Code Au.lthority pa~rt-
ners for any purpose. Nor shall any member of the Supplemntaryar
Code Aut~hority be liable in any manner to anyone for any~ act of any
other member, officer, agent or emnploye~e of the. Supplementary Code
Authorityr. Nor shall any member of the Supplemlentary Codfe Au-
thority, exercising reasonable diligence in t~he conduct of his duties
hereundler, be liable to anyone for any action or omission to act under
this Supplementary Code, except for his own willful mialfeansnc~e
or non-feasance.
SECTION 6. The Supplementary Code Authority shall also from
time to time furnish t.o t.he Basic Code Aut~hor~it~y, designated in said
Basic Code, such information as may be r~equired to be furnishedB
under sterns of said Basic Code.
SECTION 7i. The Sup~plemnentary Codle Aut~ho~ity sha~ll have all th~e
powers andi duties which shall be nPcessanry andl proper to enable
it to fully administer this Supplementaryy Code and to effectuate
its purposes.
Without limitation t~o the foregoing or any other powers or duties
provided' for in this Supplement~ary Code, this Supplementary Code
Authority shall have the following specific duties:
(a) To adopt By-Laws andi Rules andi Regulations for its proce-
dure and for t~he administration of thle Supplemnentary Code.
(b) To obtain from the members of th~e Indlustryv through its Con-
fidential Agent., such information and r~epor~ts as requjrir~ed for the
adlministrationl of this Supplemnentary CoJde. Inl addition to informa-
tion required to be submiittedl to the Supplementaryr Code Authority',
the members of the Industry, subject to this Supplementary Code,
shall furnish such statistical information as t~he Administrator many
deem necessary for the purposes recited in Section 3(a) of the Act,

to such Federal and State agencies as he may designate provided
that nothing in this Supp~lemnentary Code shall relieve any member
of the Indust~ry of any existing obligation to furnish reports to any
Government agent. No individual report shall be disclosed to any
other member of the Industry or any other party except to such other
Governmental agency as may be directed by the Administrator.
(c) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided that
nothing herein shall relieve t~he Supplementary Ciode Authority of its
duties or responsibilities under this Supplem~entary Code and that
such trade associations and agencies shall at all times be subject to
and comply w~ith the provisions hereof.
(d) To make recommendations to the Administrator for the coor-
dina~tion of the administration of this Supplementary Code with such
other codes, if any, as mnay be related to the Industry.
(e) To appoint a Trade Practice Committee which shall meet with
the trade practice committees appointed under such other codes as
may be related to the Industry for t.he purpose of formulating fair
trade practices to govern t~he relationships between employers under
this Supplemnentary Code and under such others to the end that such
fair trade practices may be proposed to the Administrator as amend-
ments to this Supplementary Code and such other codes.
(f) To recommend to the Admninistrator any action or measures
deemed advisable including further fair trade practice provisions to
govern members of the Industry in their relations with each other or
with other industries; measures for industrial planning and stabili-
zation of employment; including modifications of this Supplementary
Code which shall become effective as part hereof upon approval by
the Administrator after suchI notice and hearing as he may specify.
SECTION 8. If the Adiministrator believes that any action of the
Supplemientary Code Authority1 or any agency thereof, may be un-
fair or unjust, or contrary to public interest., the Administrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action. Further action by such
Suplplaiemenar Code Authority or agency regardinpn the matter
comlaied fmay be taken if approved by the Admmnistrator but
shall not be taken if disapproved by t~he Administrator within
thirty (30) days of notice to him of intention to proceed with such
SECTION 9. Pursuant to the provisions of the Act, the Supple-
mentary Code Authority shall have the power to investigate all com-
plaints filed with it by one member of the Industry against another
member of the Industry.
SECTION 10. Every emp~loyer shall provide for the safety and
health of employees during th-e hours and at the places of their em-
ploym'ent. Standards for safety and health shall be submitted by
the Supplemenitary Code Anthority to the Aidministrator within three
months after the effective date of the Supplementary Code.
SECTION 1. With respect. to that portion of his product which is
within the Industr~y, every member of the Industry shall use an


accounting system for determining his allowable cost which conforms
to the principles of, and is at least as detailed and complete as, the
uniform methodl of accounting, and t.he uniform method of costing,
to be formulated or approved byv the Supplementary Code Authority
and the Administrator with such variations thlerefroml as may be
requliredd by t~he ind~ividualsl condit~ions affcrt~ing any member of the
Industry or group of employers, and as may be approved by the
Administrator after consultation with thl'e Suppleme~ntary Code
SECTION 2. WThen the Supplementary Code Authority determines
that an emergency exists in this Industry andl that the cause thereof
is destructive price-cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplementary
Code, the Supplementary Code Aut~hority mayr cause to be deter-
mined the lowest reasonable cost of the products of this Industry,
such determination to be subject to such notice and hearing as the
Admiinistrator may require. The Administrator may apiprore, dis-
upprove, or modify the determlinat~ion. Thereafter, during thes
period of the emergency, it shall be an unfair trade practice for
any member of the Indfustry to sell or offer to sell any products of
the Industry for which the lowest reasonable cost. has been deter-
mined at such prices or upon such terms or conditions of sale that
the buyer will pay less therefore than the lowest reasonable cost of
such products.
WThen it a appears tha~t conditions have changed, the Supplem~entary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.
No member of this Industry7 shall sell or exchange an of the
products of thiis Industry, at a price, or upon tetrmis and conditions,
which will result in the purchaser paying for th~e goods received,
lesjs than t~he allowable cost thereof t~o th~e seller, de~ternuinedl in
accordance with a uniform method of costing above described in
Article V; provided, however, that dropped lines, or seconds, or
inventories which must be converted into cash to meet emergency
needs may be disposed of by any mnember of this Industry, at any
price and on any terms and conditions, but only if such member
of this Industry, not less thanl two weeks befo~e~ such disposal, hias
filed with the Supplementary Code AuthorityS or its Conftide~ntial
Agent, a statement in writing, setting fourth the fact olf, and reasons
for, such proposed disposal, and provided further, that any mnem-
ber of this Industry may sell below his costs in order to meet com-
petitive prices which do not violate this S~,upplem~entary Code, and
which a~re filed in accordance with the provisions of Article VII
of thlis Supplementary Code, or to meet competition from products
of equivalent design, character, quality, or specifications, mianufac-
tured outside the United States, provided that he has first so re-
ported to the Supplementary Code Authority andi in such report
has cited the competition which caused him to take such action.
SECTION 1. If the Supplementary Code Authority determines that
in any branch of the Industry it has been the generally recognized


practice to sell specific products on the basis of net price lists, and/or
price lists and discount sheets, and/or a schedule of net differentials
and base prices, each member of the Industry shall within ten (10)
days after the effective date of this Supplementary Code file wilth
the Supplemientary Code Authority a net price hist, and/or price
lists and discount sheets, and/or a, schedule of net differentials and
base prices, as the case may be, individually prepared by him, and in
such form and for such products as the Sjupplementary Code
Authority may prescribe, showing his current prices, or prices and
discounts, and terms of sale and payment, and the Supplementary
Code. Authority shall immediately send copies thereof to all manu-
fact~ur~ers of such specified product whose names may be ascertained
after a. diligent search. Such prices shall be available to all inter-
ested parties at the office of the Confidential Agent.
Revrisedl price lists und,/or discount sheets and,'or schedule of
net differentials and base prices, and/or all other conditions of sale,
miay be filed from time to time thereafter with the Supplementary
Code Authority by any manufacturer of such product to become
effective t~en (10) business dlays after actual receipt by the Supple-
mientaryI Code Authority through its Confidential Agent. Copies
of such revised price lists and/or schedule of net differentials and
base prices, and/'or all other conditions of sale, with notice of effec-
tire date specified, shall be immediately sent to all manufacturers
of such products whose names may be ascertained after a diligent
search, and shall be: available to all interested parties at the office of
the: Confidential Agent.l
SECTION 2. If and wvhen the Supplemnentary Code Authority shall
determine that in any branch or subdiv\ision of the Industry not
now selling its product on the basis of price lists, with or without
discount sheets, and,/or schedule of net differentials and base prices,
writh fixed terms of sale and payment, the distribution or miarketing
conditions in said branch or subdlivision are thle same as, or similar
to, the distribution and marketing conditions in a branch or sub-
division of the Industry where the use of price lists, with or with-
out discount sheets, and/or schedule of net differentials and base
prices, and other fixed conditions of sale, is well recognized, and
that where the use of price lists, with or without discount sheets,
and,'or schedule of net differentials and base prices, with other fixed
conditions of sale should be put into effect in such branch or subdi-
vision, then each manufacturer of the product or products of such
branch or subdivision shall, within twenty (20) days after notice of
such determination, file with thle Supplementary Code AuthorityV net
price lists or price lists and discount sheets, or schedule of net differ-
ent~ials and base prices, containing all other fixed conditions of sale,
and such price lists and.'or discount sheets, and,/or schedules of net
differentials and base prices, and or other fixed conditions of sale may
be thereafter revised in the manner herein above provided; provided,
however, that the Supplementary Code Authority shall make no
determination to place, any product of the Industry (not now on a
price list basis) on a price list basis, or ( not now on a basis of net
differenti als and base price) on a basis of net differentials and base
'See paragraph 2 of order approving this Code.

price, as provided in this Section 2 of Article VII unless two-thirds
of the members who are at that time engaged in ma~nufacturing such
product, shall affrmatively consent that such determination be made.
SECTION 3. To the extent permitted by the Act and subject to
such rules and regulations as the Administrator may prescribe, any
or all information furnished to the Supplementary Code Authority
by any member of this Industry Pursuant to the provisions of thlis
Supplementary Code shall be subject to verification by an impartial
agency agreed upon by the Supplementaryv Code Authority, and thle
member of the Industry~ in question, and, failing such agreement
such Impartial A~gency shall be selected by the Administrator, which
Impartial Agency may check so much of the pertinent books, ac-
counts and records of such members of the Industry as ma~y be re-
quired to verify the accuracy of the information so furnished.
SEcTION 4. Each member of the Industry shall furnish the SCup-
pleentaryCod Auhortyfor distribution with such number of
cpieestr ohiprce lists andor discount sheets, and,/or schedule of
net differentials a~nd base prices, as the Supplementary Code Au-
thority may prescribe. Such price lists shall be available to all
interested parties at the office of the Confidential Agent,.
SECTION 5. No member of the Industry shall sell, directly or in-
directly, byV any means w'hatsoever, any product of t~he IZndustry cov-
ered by provisions of this Article VII at a price or at discounts, or on
other conditions of sale more favorable to t~he purchaser than those
provided in his own current net price lists, or price lists and dis-
count sheets, or schedule of net differentials and base prices, except
in accordance with the provisions set forth in Article VI.
In addition to the unfair trade practices covered by Article V of
the Basic Code, except Section A, and for all purposes of this Sup1-
plemientary Codle, the following described acts shall constitute unfair
piractices. Arny member of the Industry who shall directly, or in-
diretlythrugh ny ffier, eployee, agent or representative, use
or employ _any of such unfair practices shall be gulilt~y of a violation
of this Suriplementsry C~ode.
RULE 1. Making or giving to any purchaser of e-ny product any
guaranteed or protection in any form against decline in the invoice
price of such product, after date of shipment. thereof.
RULE 2. Combination Sales. For the purpose of influencing a
sale no member of the Industry shall sell or offer to sell commodities
other than products of this Industry at, a price below the invoice
price plus all incidental costs of such products. If and when the
products of this Industry are sold in combination with products of
other industries, the invoice, must. clearly show the unit. price of all
articles listed.
RULE 3. The splitting of commissions or other compensation re-
ceived by an employee or agent of the seller with the buyer.
RULE.F 4. At~temptingr to induce the breach of a contract between
a competitor and his customer, or source of supply, or interfering
with, or obstructing the performance of such contractual duties
or services.
RULE 5. Standardization of Products. The Supplementary Code
Authority shall make studies for the establishment of classification,


14 3 1262 08856 0775

dimensional standards and count per pound for the products of the i
Industry, in cooperation with some Fiederal Governi~ent age~ney,~
preferably the Bureau of Standards of the United States .Departmnent
of Commerce, with the view to their recommendation for adolption ..
by the Industry and such standards when approved by a maJority
vote of the members of the Industry shall become the standards-o~f
this Industry, subject to the approval of the Administrator; and
thereafter all members of the Industry shall follow such standards. :
Failure to follow the standards so established and approved will i
be an unfair method of competition and a violation of this ~Supple-
mentary Code. Provided, however, that exemptions from such
standards may be granted by t~he Administrator after consultation
with the Supplementary~ Code Authority.

No provision of this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to eliminate,
oppress or discriminate against small enterprises. t
SECTION 1. As provided in sub-section (b) of Section 10 of the
Act, the President may from time to time cancel or modify any
order, approval, license, rule or regulation issued under Title I o
said Act.
SECTroN 2. This Supplementary Code, except as to provisions
required by the Act, may be modified or amended on the basis of
experience or changes in circumstances, such modifications or
amendments to be based upon application by the Supplementary
Code Authority or other representative group within the Indust~ry
to the Admlinistrator and such notice and hearmg as he shall specify
and to become effective and be a part of this Supplementary Code
on approval by the Administrator.
Whereas thl-e policy of thle Act to increase real purchasing power
will be made more d~ificult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual costs
should be delayed, and when made, such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
Thlis Supplementary Code shall become effective at 12: 01 o'clock
A.M\. Eastern Standard Time on the tenth day after it is approved by
the President and shall continue in effect until June 16, 1935, or the
earliest date prior thereto on which the President shall, by proclama-
tion, or the Congress shall, by joint resolution declare that the emer-
gency recognized by Title I of the National Industrial Recovery Act
has ended.
Approved Gode No. 84---Supplement No. 40.
Registry No. 1114--14.