NATIONAL RE CO VERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON JULY 19, 1934
War sale by the Superlintendent ofDocuments. Washington, D.C. Price 5 cents
Appro~ved Code No. 84--Sapplement No. 42
Registry No. 1110--03
WE DO OUR PART
UNIV. OF 1-L LAS.
U. S. DfEP TO ~~ lr' NTE TAE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, WVashingrton, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Approved Code No. 84i--Supplement No. 42
SUPPLEMENTARY CODE OF FAIR COMPETITION
BRASS FORGING MANUFACTURING INDUSTRY
As Approved on July 19, 19341
APPROVING SUPPLEMZENTARP CODE OF FAIR COMPETITION FOR THE BRAsB
FORGING IkfANUFACTU5RING INDUSTRY
A DIVISION OF THE FABRICATED METAL PRODUCTS MANUrFACTURING AND
METAL FINISHING AN'D METAL COATING INDUSGTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Tjitle I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section 1 of Article VI of the Basic Code for the
Fabricated ~Ifetal Products Mlanufacturing and hletal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval of
a Supplementary Code of Fair Competition for the Brass Forging
Manufacturing Industry, and hearing having been duly held thereon;
and the annexed report on said Supplemnentary Code, containing find-
ings with respect thereto, having been made and directed to the
NOW, THEREFORE, on behalf of the President of the UCnited
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543--A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do fi~nd that said Supplementary Code complies in all
respects 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 Competition be and it is hereby
Hean S. JoHNSON,
BAdmi~nistraxtor for Irulustrial Rec~oLery.
Approval recommended :
BBaRoN W. MVURRAY,
Jul~y 19, 1938.
75029" 829-91 34 <
REPORT TO THE PRESIDENT
The It'hite Houlse.
SIR: This is a report on the Supplem~entary Code of Fair Compe-
tition for the Brass Forgring Maisnulfacturing Industry, a division of
the Fabricated Mietal Products Mannufacturing and Mletal Finishinig
and Mietal Coating Industry, the hearing having been conducted
thereon in Washningtron, D.C., April 5, 1934, in accordance- with the
provisions of Title I of the Nationlal Industrial Recovery Act.
The Brass Forging. Manufacturing Industry, being truly repre-
sentative of this division of the Fabricated Mletal Products Manu-
facturing and Mietal Finishing and Muetal Coating Industry, has
elected to avail itself of the option of submitting a Supplementary
Code of Fair Competition, as provided for in Section 1 of Article VI
of the Basic Codel for the Fabricated Metal Products Manufacturing
and M~etal Finishmg and MLetal Coating Industry approved by you
on the second day of November, 1933.
nisTaex OF THEP CODE
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Sup-
Article III. This Industry is a division of the Fabricated Metal
Products M~anufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a SupplementaryT Code Authority consisting
of eleven (-11) members to be elected at a mleetinga called by the Tem-
porary Supplementary Code Authority, and gives the Admiinstrator
the authority to appoint one additional member without vote and
provides machinery for obtaining statistics and the administration
of the Supplementary Code.
Article V provides for cost finding and accounting.
Article VI: provides for open price filing.
Article VII1 provides means for preventing destructive price
Article VIII sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.
Article IX provides for standardization of products.
Article X provides against monopolies and monopolistic practices.
Article XI contains the mandatory provisions contained in Sec-
tion 10 (b) of the Act and also provides for the submiission of pro-
posedl amendments to the Supplementary Code.
Article XII recognizes that price increases be limited to actual
additional increases in the seller's costs.
Article XIII states the effective date and duration of this Supple-
The Deputy Admninistrator in his final report to me on said Sup-
plementary Code having found as herein set forth and on the basjis of
all the proceedings in this matter:
I find that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery5
Act, including removal of obstructions to thle free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the. general welfare by promnotinig the organiza-
tion of industry for the purposes of cooperative action among the
trade grroups,9 by induicing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by elimmiating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacityV
of industries, by avoiding undue restriction of p~rodu~ction (except
as may be temporarily required), by increasing thle consumption of
industrial and agricultural products through increasinga purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating: industry.
(b) Said Indfustry normally employs not. more than 50,000 em-
ployees; and is not classifiedl by me as a major industry.
(c) The Supplementary Clode as approved complies in all respects
with the pertinent provisions of said Title of saidl Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof ; and that the
applicant association is an industrial association truly representative
of the aforesaid Industry; and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplemnentaary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in'other steps of the economic process havre not
been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplementary
H~UanI S. JoHNSON,
JULY 19, 1934.
SUPPLEMENTARY CODE OF F'AIR COMPETITION 3FOR
THE BRASS FiORGING MANUFACTURING INDUSTRY
a DIVISION OF THIE FABRICATED METAL PRODUCTS MAINUSFACTURINGI AND
METAL FINISHING AND METAL COATING INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Supplementary Code of
Fair Competition for the Brass Forging Manufacturing Industry,
pursuant to Article VI of the Basic Code of Fair Competition for
the Fabricated M~etal Products Mianufacturing and Met~al Fiinishing
and Metal Coating Industry, approved by the President on the see-
ond day of November, 1933, and the provisions of this Supplemen-
tary Code shall be the standards of fair competition of such IEn-
dustry and shall be binding upon every member of the Industry.
SECTION 1. The term "L Brass Florgringa Manufacturing Industry "
is defined to mean the manufacture for sale of forgings of copperI,
brass, bronze and/or related alloys which are the basic, and/or
cleaned, and/or trimmed, and/or pierced and/or sized metal article
initially formed under pressure by placing solid, plastic, or semi-
plastie metal between reciprocating die impressions, forms or
SECTION 2. The terms "L President ", "'Act and "Administrator "
as used herein shall mean respectively the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
SECTION 3. The term "L member of the Industry as used herein
includes but without limitation, any individual, partnership, asso-
ciation, corporation or other form of enterprise engaged in the
Industry, either as an employer or on his or its own behalf.
SECTION 4. The term Basic Code as used herein is defined to
mean the Basic Code of Fair Competition for the Fabricated ~Metal
Products Manufacturing and Metal Finishing and Mefal Coating
Industry as approved by the President on the second day of Novem-
SECTION 5. The term "' employee as used herein includes any and
all persons engaged in the Industry, however compensated, except a
member of the Industry.
SECTION 6. the term employer as used herein includes anyone
by whom any such emplo ee is compensated or employed.
SECTIONr 7. The term 'L Supplementary Code Authority as used
herein means the agency which is to administer this Supplement~ary
Code as hereinafter provided.
SECTIONu 8. Thle term "LAssociation as used herein is defined to
mean the Brlass Forging Industries Association, or its successor.
SECTION 9. The term Supp'lem'entary Code C~omm~ittee as used
herein is dlefinedl to mean the Commlittee selected by the Brass Forg-
ing Industries Association to present, make such changess as neces-
sary, and assent to and signr this Supplementary Codle on behalf of
Sectromu 10. Thle term "' Fedleration "' as used herein is defined to
mean the F~abricalted M~etal Prodlucts Federation, or its successor.
SECTIONT 11. Th~e termi Confidlential Agent as used herein is
defined t~o mean the impartial agency dlesignated by the Supple-
mentary Code Author~ity.
ARTICLE III--EMPLFOYMIENT PnovIsows
This Industry is a division of the Fabricatedl Metal Products
MCanufacturinig and Mietal Finishing~ and Mletal Coating Industry
and without limitation the wage, hour, andi labor provisions in
Article III of its Basic Code as approved by the President, Novem-
ber 2, 1933, including Section 1 of said Article III, by which the
provisions of sub-sections (1), (2) and (3) of Section 7 (a) of Title I
of the Act are made conditions of this ("ode, are specifically incor-
porated herein and made a part hereof as the wage, hour and labor
provisions of this Supplemlentary Code.
ARTICLE~ IV--ORCANIZATION AND ADMTINIISTRATION
SECTION 1. During the period not to exceed sixtyl (60-) days follow-
ing the effective date of this Supplementaryv Code, the Supplemen-
tary Code Commnittee of the Industrysalcnttt eprr
Supplementary Code Authority uintisal thetiut SuppemenarodeAu-y
thority is elected. There shall be constitutedl within the sixtyr-day
period a LSupplementary Code Authority consisting of eleven (11)
members to be elected by the members of the Industry, at a meeting
called by the Temporary Supplementary Code Authority, upon ten
(10) days' notice sent, by registered mail to all members of the In-
dustryr whose names may be ascerta~ined after dliligent search, who
may vote either in person or by proxy. The members of the Supple-
mentary Code Authority first elected shall serve until the follow\iing
annual meeting of the Association, and thereafter, members of the
SupplementaRry Code Authority shall be elected, as hiereinafter pro-
vided,. at a meeting of the members of the Industry to be held at
the time and place of each annual meeting of the Association to
serve until the following annual meet~ingi. The members of the
Supplementary Code Authority shall be elected in the following
(a) Two (2) members who are members of the Industry, but not
members of the Association to be nominated and elected by the non-
members of the Association, present in person, by proxy or by letter
ballot, each member to have one vote.
In case the non-members of the Association fail to elect the t~wo
(2) members as hereinabove provided, the Administrator shall
appoint such members from a list of four (4) non-members of the
Association to be furnished by the Supplementary Code Authority.
(b) Nine (0) members who are members of the Industry anbd
members of the Association by fifty-one percent vote of members of
the Association, present in person or by proxy, weighted on the basis
of one (1) vote for each member and ten (10) additional votes for
each member whose production is in excess of $100,000 in the pre-
vious calendar year reported to the Supplementary Code Authority,
provided, however, that any member of thie Association whose pro-
duction is less than $100,000 per year shall have one (1) additional
vote for each annual production unit of $10,000; provided, further
that no one member may cast more than thirtyr-three and one-third
percent (331,5%) of the total number of votes cast.
A vacancy in the membership of the Supplementary Code Author-
it~y may be filled by a majority vote of the remaining members of
the Supplementary Code Authority. If the vacancy be that of a
non-member of thle Association it must be filled by the election of
In addition thereto the Administrator may appoint a member of
the Supplementary Code Authority who shall be without vote and
shall serve without expense to this Industry, unless the Supplement-
ary Code Authority agrees to pay such expense. The representative
who may be appointed by the Administrator shall be given reason-
able notice of and may sit at all meetings of the Supplementary
SErTION 2. Each trade association directly or indirectly partici-
pating in the selection or activities of the Supplementary Code Au-
thority7 shall: (1) impose no inequitable restrictions on membership,
and (2) shall submit to the ~Admmnistrator true copies of its Articles
of Association, By-Laws, Regulations, and any amendments when
made thereto, together with such other information as to member-
ship, organization, and activities as the Administrator may deem
necessary to effectuatee the purposes of the Act.
SECTION 3. In order that the Supplementary Code Authority shall,
at all times, be truly representative of the Industry and in other re-
spects comply .with t~he provisions of the Act, the Administrator
may prescribe such hearings as he may deem proper; and, thereafter,
~fhe shall 6ind that the Supplementary Code Authority is not truly
representative or does not in other respects comply with the provi-
sions of the Act, may require the removal of any or all of the mem-
bers and may make appropriate modification or modifications of
method of selection of the Supplementary Code Authority.
SECTION 4. Every employer shall provide for the safety and health
of employees d~tnaduringthne hours a~nd at the places of their employ-
ment. Sadrsorsafety and health shall be submitted by the
Supplementary Code Authority to the Administrator within three
months after the effective date of the Supplementary Code.
SECTLIYx 5. It being found necessary in order to support the ad-
ministration of this Supplementary Code and to maintain the stand-
ards of fair competition established hereunder and to effectuate the
poiyof the Act, the Supplementary Code Authority is authorized:
(a)$ To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shzal be held in trust for the purposes of the Supplementary Code.
(b) To submit to the Administrator for his approval, subject to'
such notice and opportunity to be heard as he may deem necessary:
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds neces-
sary to support such budget shall be contributed by members of
(c) After such budget and basis of contribution has been ap-
proved b2y the Administrator, to determine and obtain equitable con-
tribution as above set forth by all members of the Industry, and to
that end, if necessary, to institute legal proceedings therefore in its
Each member of the Industry shall pay his or its equitable contri-
bution to th~e expenses of the maintenance of the Supplementary
Code Authority, determined as hereinabove provided, and subject
to rules and regulations pertaining thereto issued by the Admin-
istrator. Only members of the Industry complying with t.he Sup-'
plementary Code and contributing to the expenses of its adminis-
tration as hereinabove provided, unless duly exempted from making
such contributions, shall be entitled to participate in the selection of
members of the Supplementary Code Authority or to receive the'
benefits of any of its voluntary activities or to make use of any
emblem or 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; and
no subsequent budget shall contain any deficiency items for expendi-
tures in excess of prior budget estimates except those which the
Administrator shall have so approved.
SECTION 6. Nothing contained in this Supplementary Code shall
constitute the members of the Supplementary Code Authority part-
ners for any purpose. Nor shall any member of the Supplementary
Code Authority be liable in any manner to anyone for any act of any
other member, officer, agent or employee of the Supplementar~y
Code Authorityv, nor shall any member of the Supplementary Code
Authority, exercising reasonable diligence in the conduct of his
dutes erende, e labl toanone for any action or omission
to act under this Supplementary Cdecp o i w ilu
malfeasance or non-feasance.
SECTION 7. The Supplementary Code Authority shall also from
time to time furnish to the Basic Code Authority, designated in said
Basic Code, such information as may be required to be furnished
under the terms of said Basic Code.
SwrzIon 8. The Supplementary Code Authority shall have all the
powRers and duties which shall be necessary or proper to enable it to
fully administer this Supplementary Code and to effectuate its pur-
pose. Without limitation to the foregoing, or any other powers or
duties provided for in this Supplementary Code the Supplementary
Code Authority shall have the following further powers and duties:
(a) To adopt By-Laws and Rules and Reg~ulations for, and keep
records of, its procedure and the administration of this Supple-
(b) To obtain from the members of the Industry, through its
Confidential Agent, such information and reports as required for the
administration of this Sulpplementary Code. In addition to infotI~ia-
tion required to be submitted to the Supplementary Code Autalew
ity, the members of the Industry, subject to this Supplementary Code,
shall furnish such statistical information as the Admninistrator may
deem necessary for the purposes recited in Section 3(a) of the Act,
to such Federal and State agencies as he miay designate; provided-
that. not.h~ing in this Supplementary Clode shall relieve any member
of the Industry of any existing obligations to furnish reports to any
Government. agency. No individual report shall be disclosed to any
other members of th~e Industry or any other party except to such
other Governmental agencies as may be directed by the Adminis-
(c) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein. provided that, nothing herein shall relieve the Supplementary
Code Authority of its duties or responsibilities under thiis Supple-
mientary Code and that such trade associations and agencies shall
at all times be subject to and comply with the provisions hereof.
(d) To makie recommendations to the Administrator for the coor-
dination of the administration of this Supplementary Code with such
other codes, if any, as may be related to or affect the members of the
I nd ust ry.
(e) To recommend to the Administrator further fair trade girac-
tice provisions to.govern members of the Industry in their relations
with each ot~her or with other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.
(f) To appoint a trade practice committee. which shall meet with
the trade practice committees appointed under such other' codes as
me.y be related t~o the Industry for the purpose of formulating fair
practices to govern the relationships between production and dis-
tribution employers under thiis Supplementary Code, a~nd under such
others to the end that such fair trade practices ma~y be proposed to
the Adminiistrator as amendments to this Supplementary Code and
such other codes.
(g) To consider the subjects of contracts in existence on the effec-
tive date of this Supplementary Code, and make recommendations
to members of this Industry and the Administrator as to the disposi-
tion of such contracts.
SECTION 9. To the extent permitted by the Act and subject to such
rules and regulations as the Administrator may prescribe, the Sup-
plementary C'ode Authority shall have power to investigate all com-
plaints filed w~ith it by one member of the Industry against another
mlember of the Industry.
SECTION 10. If the Administrator believes that any action of the
Supplementary Code Authorityv or any agency thereof is unfair or
unjust or contrary to the public interest, the Adminiistrator may
require that such action be suspended to afford an .opportunity for
investigation of the merits of such action. Further action by such
Sulpplemnentary C~ode Aut~hority or agency regarding the matter com-
plained of may be taken if approved by the Administrator, but shall
not be taken if disapproved by the Administrator within thirty (80)
days of notice to him of intention to proceed with such action.
SECTION 11. To the extent permitted by the Act and subject to
such rules and regulations as the Admlinistrator mnay prescribe, any
or all information furnished to the Supplementary Code Authority
by any member of this Industry pursuant to the provisions of this
Supplementary Code shall be subject to verification by an impartial
agency agreed upon by the Supplemnent~ary Code Authority and the
member of the Industry in question, and, failing such agreement
such impartial agency shall be selected by the Aldministrator, which
impartial agency may check so miuch of the pertinent books, ac-
counts and records of such members of the Industryg as may be
required to verify t~he accuracy of the information so furnished.
ARTICLE V-CosT FINDING AND ACCOUNTING
The Supplementary Code Authority shall cause to be formulated
methods of cost finding and accounting capable of use by all mem-
bers of the Industry, and shall submit such methods to the Admin-
istrator for review. If approved by the Administrator, full infor-
mation concerning such methods shall be made available t~o all mem-
bers of the Industry. Thereafter, each member of the Industry shall
utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit the Supplementary
Cod., Authority, any agent thereof, or any member of the Industry
to suggest uniform additions, percentages or differentials or other
uniform items of cost which are designed to bring about arbitrary
uniformity of costs or prices.
ARTICLE VI-Oraw PRICE FILING
SECrTON 1. Each member of t~he Industry shall file with a con-
fidential and disinterested agent of the Supplementary Code Au-
thority or, if none, then with such an agent designated by the
Administrator, identified lists of all his prices, discounts, rebates,
allowances, and all other terms or conditions of sale, hereinafter in
this Article referred to as price terms ", which lists shall com-
pletely and accurately conform to and represent the individual pric-
Ing practices of said member. Such lists shall contain t~he price
terms for all such standard products of the Industry as are sold
or offered for sale by said member of the Indiustry and for such
non-standard products of said member of the Industry as shall be
designated by the Supplementary Code Authority. Said price
terms shall in the first instance be filed within ten (10) days after
the date of approval of this Supplementary Code. Price terms and
revised price terms shall become effective Immediately upon receipt
thereof by said agent. Immediately upon receipt thereof, said agent
shall by telegraph or other equally prompt means notify said mem-
ber of the Industry of the time of such receipt. Such lists and
revisions, together with the effective time thereof, shall upon receipt
be immediately and simultaneously distributed to all members of
the Industry and to all of their customers who have applied there-
for and have offered to defray the cost actually incurred by the
Supplementary Code Authority in the preparation and distribution
thereof and be available for inspection by any of their customers
at the office of said agent. Said lists or revisions or any part thereof
shall not be made available to any person until released to all site
bers of the Industry and their customers, as aforesaid; provided;
that prices filed in, the first instance. shall not be released until the ;i
expiration of the aforesaid ten (10) days period after the approved
of this Supplementary Code. The Supplementary Code Authority~
shall maintain a permanent file of all price terms filed as herein
provided, and shall not destroy any part of such records except
upon written consent of the Administrator. Upon request the Sup-
plementary Code Authority shall furnish to the Administrator or
any duly designated agent of the Administrator copies of any such
lists or revisions of price terms.
SECTION 2. When any member of the Industry has filed any revi-
sion such member of the Industry shall not file a higher price within
forty-eight (48) hours.
SECTION 3. No member of the Industry shall sell or offer to sell
any products/'services of the Industry, for which price terms have
been filed pursuant to the provisions of this Article, except in ac-
cordance with such price terms.
SECT~ION 4. Each member of this Industry shall furnish the said
Agent for distribution with such number of copies of his price list
as the Supplementary Code Authority may prescribe.
SECTION 5. No member of the Industry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the In-
dustry to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Article to create.
AnRicLE VII COSTS ANlD PRICE CUITIrNG
SECTION 1. The standards of fair competition for the Industry
with reference to pricing practices are declared to be as follows:
(a) ilfllydestuctve rice cutting is an unfair method of com-
'petition and is forbidden. Aymme fteIdsr ro n
other Industry or the customers of either may at any time complain
to the Supplementary Code Authority that any filed price con-
stitutes unfair competition as destructive price cutting, imperiling
small enterprises or tending toward monopoly or the impairment
of code wages and working conditions. The Supplementary Code
Authority shall within five (5) days afford an opportunity to the
member filing the price to answer such complaint and shall within
fourteen (14) days make a ruling or adjustment thereon. If such
ruling is not concurred in by either party to the complaint, all
paesshall be referred to the Research~ and Planning Division of
N...which shall render a report and recommendation thereon to
(b) Wlhen no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is izitended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) When an emergency exists as to any given products, sale below
the stated minimum price of such product, in violation of Section 2
hereof, is forbidden.
SECTION 2. Emlergenc~y Provisions.--
(a) If thle Administrator, after investigation shall at any time
find both (1) that an emergency has arisen within the Industry ad-
versely aff'ecting small enterprises or wages or labor conditions, or
tending toward monopoly or other neute conditions which tend to
defeat the purposes of the Act; and (2) that the determination of
the stated minimum price for a specified product within the Industry
for a. limited period is necessary to mitigate the conditions const~i-
tuting such emnercency and to effctuate the purposes of the Act, the
Supplementary Gode Authority ma~y cause an impartial agency, to
investigate costs and to recommend to the Admninistrator a determni-
nation of the stated miinimumn price of the product affected by the
emergency and thereupon thle A~dministrato lr my proceed to deter-
miine such stated minimum price.
(b) WVhen the Admllinistrator shall hiave dleterminedl such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of
such emergency and to effectuate the purposes of the National Indus-
trial Recovery Act, he shall publish such price. Thereafter, during
such stated period, no member of the Industry shall sell such speel-
fled products at a net realized price belowv said stated miinimum price
and any such sale shall be deemed destructive price cutting. Fromt
time to time, the Supplementary eCode Authority may recommend
review or reconsideration or teAdministrator may cause any
determinations hereunder to be reviewed or reconsidered and
appropriate action taken.
AiRrICLE VIII -Unar~r TRADE PRACTICES
SUPERSEDING ALL THE PROVrISIONS OF ARTICLE V OF THIE BASIC CODE
The following described acts shall constitute unfair practices.
Any member of the Industry who shall directly or indirectly through
any officer, employee, agent, or representative use or employ any of
the following unfair practices shall be guilty of a violation of this
RULE 1.?, F88s .itidertis8Ry.--RO member of the Industry shall
publish advertising whetherr printed, radio, display or of any other
nature), which is misleading or false in any material particular,
nor shall any member in any way misrepresent any goods (including
but without limitation its use, trade-mark, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content or
preparation), or credit terms, values, policies, services, or the nature
or form of the business conducted.
RULE 2. Fc/88 Bill~ing.--RO member of the Industry shall know-
ingaly withhold from or insert in any quot~atioq or invoice any state-
ment that makes it false in any material particular.
RULE 3. Defamnatzion.-No member of the Industry shall defame a
competitor by falsely imputing to him dishonorable conduct, inabil-
ity to perform contracts, questionable credit standing, or by other
false rep~reentnt~ion, or by falsely dispar~rnagn the grade or quality
of his goods.
RULE 4. ThrB848 of Lalo Sulits.--No memnber of the Industry shall
publish or circulate unjustified or unwarranted threats of legal pro-
ceedings which tend to or have the effect of harassing competit~th
or intimidating their customers. Failure to prosecute in due edhrsiet:'' ;;
shall be evidence that any such threat is unwarranted or unjusti~ed)
RULE 5. S~ecret Rebates.-No member of the Industry shall secretly~
offer or make any payment or allowance of a rebate, refund, comnmis-
sion, credit, unearned discount or excess allowance, whether in the
form of money or otherwise, nor shall a member of the Indutry~t
secretly offer or extend t~o any customer any special service or privx.~
lege not extended to all customers of the same class, for the purpose
of influencing a sale.
Rota 6. Selling on Consigrknenwt.--No member of the Industry
shall ship goods on consignment except under circumstances to be
defined by the Supplementary Clode Authority and approved by the
Administrator where peculiar circumstances of this Industry require
RoUL 7. Comlmerciarl Bribery.--No member of the Industry shall
give, permit to be given, or directly offer to give, anything of value
for the purpose of influencing or rewarding the action of any emn-
ployee! agent or representative of another in relation to the business
of the employer of such employee, the principal of such agent or the
represented party, without the knowledge of such employers princi-
pal or party. This provision shall not be construed to prohibit free
and general distribution of articles commonly used for advertising
except as far as such articles are actually used Ifor commercial bribery
as hereinabove defined.
RoUL 8. Interference woith AnothLer's Contracts.--No member of
the. Industry shall wilfully induce or attempt to induce the breach
of existing contracts between competitors and their customers by
any false or deceptive means, or interfere with or obstruct the per-
formance of any such contractual duties or services by any such
means, with the purpose and effect of hampering, injuring or
embarrassing competitors in their business.
RULE 9. COferon..-No member of the Industry shall require that
te purchase or lease of any goods be a pre-requisite to the purchase
or lease of any other goods.
RULE 10. Design Piracy.--No member of the Industry shall imi-
tate, simulate, appropriate or use any trade marks, trade names,
slogans or other marks of identification having the tendency and
capacity to mislead or deceive purchasers.
Rose 11. Lulmp Suonz Biddling.--No member of the Industry shall
fail to base all bids on the price schedules showing each item sepa-
rately and items shall not be lumped for bidding in any manner other
than provided in such price schedules.
RULE 12. T~1'171 a714 COn diton8 Of Sal~e.--No member of the In-
dustry shall give or offer to give better terms than net cash thirty
(30) days, or one percent (1%b) discount for cash for payment aes
follows: bills dated the 1st to the 15th of the month inclusive, if
paid on or before the 25t~h of the month; bills dated the 16th of the
month to and including the last day of the month, if paid on or before
the 10th of the following month. Bills will be dated the day of
On accounts not paid within thirty (30) days from the end of the
month in which bills are rendered, interest will be charged -at the
rate~of six percent (6%), or the legal maximum whichever is lower,
per annum beginning on the first of the month following the date
on which payment is due. Bills for such interest will be rendered
Terms on tools? fixtures and fitting-up charges-Net Cash.
RunL 13. Enlforcmenl~t of Coltun~tacS.-No member of t~he IndustrIy
shall neglect to enforce a contract as a means of evadling price
schedules or securing the customer's favor.
Ruu:E 14. Plotecti~on against Plrice D~c~lines and AdvanIII ceS.- No
member of the Industry shall give to customers protection against
advance in price and guaranty! against decline in price.
Rou 15. Tools and Dies.--No member of t~he Industry shall con-
tract to rebate, pror~te? or absorb fitt~ing-up charges for tools and
Any fitting-up charges named are to cover part cost of the neces-
sary tools and fixtures required for the particular work, such tools
andl fixtures to be and remain the sole property of the member of
the Industry and to remain in the possession of the member of the
Industry for use exclusively in filling orders of the customer.
There will be no additional charge for the upkee or trelaemyent
of tools and fixtures, but if, at any time, a periodo he er
has elapsed since the receipt of any order from the customer requir-
ing the use of such tools and fixtures, the member of the Industry
ma there af ter makbe any such use or disposition of such tools and
fixure asth meberofthe Industry desires without any account-
ing to the customer for such use or disposition of the proceeds thereof,
unless otherwise mutually agreed upon, provided, however, the mem-
ber of the Industry gives thirty (30) days' written notice to the
ARrrcu: IXY-STANDARDIZATION OF PRODUCTS
The Supplementary Code Authority may devise adequate stand-
ards for the manufacture of the products of the Industry, upon
approval of such standards by fifty-one percent (51%r) vote of the
members of the Industry, present mn person or by proxy, weighteed
on the basis of one (1) vote for each member and ten (10) additional
votes for each member whose production is in excess of $100,000 in
the previous calendar year reported to the Supplementary Code
A uth ori ty, provided, however, that any member of the Industry
whose production sls hn$0,0 e ersalhv n 1
additional vote for each annual production unit of $10,000; pro-
vided, further, that no one member may cast more than thirt~y-three
and one-third percent (331,/3S%) of the total number of votes cast,
and thereafter all members of the Industry shall within ninety (90)
days after such determination and approval by the Administrator
follow such standards. Substitution of standards inferior to those
set up by the Supplementary Code Authority, so approved by the
members of the Industry and the Administrator, will be an unfair
method of competition and a violation of this Supplementary Code.
Provided, however, that where substantial changes in the prod-
ucts of the Industry occur, the member or members of the Industry
having such changes may apply to the Supplementary Code Author-
ity for a revision of such standards and2 upon failure of the Supple-
UNIVERSITY OF FLORIDA
3 1262 08856 0577
mentary Code Authority within a reasonable time to make an sighit
table revision of such standards, subject to approval of the Admrini#"Yii i
trator, then the member or members of the I[ndustry seeking such'Si
revision mlay appeal to the Administrator whose decision in the
matter will be final.
AnRICLE Xi -MonorOLIES
No provision of this Supplementary Code shall be so applied' as
to permit monopolies or monopolistic practices, or to eliminate, op-
press or discriminate against small enterprises.
SECTION 1. This Supplementary Code and all the provisions
thereof are expressly made subject to the right of the President, in
accordance with provisions of subsection (b) of Section 10 of .the
Act., from time to time to cancel or modify any order, approval,
license, rule or regulation issued under Title I of said Act.
SECTION 2. This Supplemnentaryr Code, except as to provisions~re- .,
quired byr the Act, may be modified or amended on the basis .of exe-
perience: or changes in circumstances, such modifications or amend-
ments to be based upon application by the Supplemnentary 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 Supplementary Code on
approval byr the Administrator.
ARTICLE 111--FRICE INCREASES
Whereas the policy of the Act 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 peace. in-
creases 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 t~he seller's costs.
ARTICLE XTIII-EFFECTIV'E DATE AND PURATION
This Supplementary Code shall become effective at 12: 01 o'clock
A.Ml. on the tenth day after it is approved by the Presi-dent mi~d
shall continue in effect until June 16, 1935, or the earliest date pr~ior:
thereto on which the President shall, by proclamation, or the Con-
gress shall, by joint resolution, declare that the emergency recog-
nized by Section 1 of Title I of the National Industrial RecoveSr y .
Act, has ended.
Approved Code No. 84l-Supplement No. 42 ''
Registry N~o. 111(M)3. .,: ..1