NATIONAL RECOVERY ADMIINISTRATION
SU PPLE M ENTAR~Y
CODE OF FAIR COMPETITION
ROLLER AND SILENT CHAIN
UNiV. OF FL LtB.
DOCU NS DEPT.
For Isles by the Balperintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 347--Supplement No. 24
Registry No. 1107--03
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JULY 5, 1934
Thi puliatin s fr alebythe Superintendent of Documents, Government
P-inting Office, Washington, DCadb ititofcso h ueuo
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMM~ERCH
Atlanta, Ga.: 504 Post Offce Building.
Birmingham~, Ala.: 257 Federal Building.
Boston, Masss.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chiicago, Ill.: Suit~e 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
Hou~ston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jack~sonville, Fla.: Chamber of Commerce Building.
Kansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Mlinn.: 213 Federal Building.
New Orleans, L~a.: Room 225-A, Custombouse.
New Y'ork, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pit~tsb~urgh, Pa.: Chamber of Commerce Building.
Port~land, Oreg.: 215 New Post Offce Building.
St. Lo~uis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 347l-Supplement No. 24
SUPPLEMENTARYJI CODE OIF FALQIR COMaPETITION
RnOLLE`R ~AND) SI;E~NTI CHAI[IN~ INDUSTRY
As Approved on July 5, 1934
SUPPLEMIENTARY CODE OFi E\AIR COMaPETITON FOR TH ROLLER AND)
SILENT CHAIN INiDUSTRY
A DsIVIO~N OF THE MACHINERY AND ALLIED PRODUCTS INDI7STRY
AnJ application having been. duly made pursuant to and in full
compliance with the provisions of Tiitle I of the National Industrial
Recovery Act, approved June 16, 193:3, for approval, of a Supple-
mental Code of Fair Competition for thie Roller and Silent Chain
Subdivision of Mlachinery and ~Allied Products Industry, and hear-
ings having been duly held thereon and the annexed report on. said
Supplemental Code, containing findings with respct there~to, hav~ing*
been made andl directed to the Pr~esident:
NIUOW, THEREFORE, on b~ehalf of the P'resident of the United
States, I, Hugh S. Johnson, Admninistratorr for Indurstrial Recovery
pursuant to authority vested in me by Executive Orders of the
President, includringr Executive Order No. 6543--A, dlated~ December
30, 1933, and otherwise; do herebyr incorporate by reference! said
annexed report and do find that saidl Supplemnent~al Code complies in
all1 respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that
said Supplemental1 Code of Fnir Comapetition be and it is hereby
approved;: provided, howfever, that thle provisions of Section (at) of
Article VTIII, insofar as they prescribe watig erodbewen h
filing with the Code Authoriy (or suchi agencyil as mayi~ bet~rc1 deigned
in the Supplemental Ciode) andl the effective date of price lists, as
originally filed and/or revised price lists or revised terms and condi-
tions of sale, be and they hrby~~) are stayed( pndng~n my further order.
HUan S. JoHs~on,
Administrator for Indu~strial Recorvery.
Approval recommended :
BARTON \f. 1\IURIL4Y,
Acting Divuision Adm~in~istrator.
Juyly 5, 1934.
REPORT TO THE PRESIDENT
The WYhite House.
Sm: This is a report on the Supplemental Code of Fair Com-
petition for the Roller and Silent Chain Subdivision of Machinery
and Allied Products Industry, a public hearing on which was held
in Washingaton, D.C., on December 21, 1933. The public hearing
w~as condluctedl in full accordance w-ith the provisions of Title I of~
the National Industrial Recovery Act.
The Roller andl Silent Clhain Subdivision, being truly representa-
tive of thle manufacturers of the products defined in Art~icle II of
the Supplemental Code, has elected to formulate and submit a Sup-
plemental Code of Fair Competition as providedl in the second para-
graph of Article I in t~he Codec of Fair Comipetition for the Machin-
ery and Alliedl Prodlucts Industry, approved by you on the seven-
teenth day of Mfarch, 1934.
The Subdivision includes the manufacture for sale of sprocket
chain of steel, or other metals excepting malleable iron, of the types
generally known as inverted tooth or silent chains, finished roller
and rollerless-bushingg chains (but not those commonly known as
semi-finished chains), block chains having either cold drawn or
laminated center blocks, and parts thereof, and such sprockets there-
for as are manufactured by the manufacturers of said chains, and
includes all those engaged In such manufacture. for sale.
Total estimated invested capital has remained practically constant
ranging between $12.350,000 and $12,860,000 for the years 1928-1933.
This Subdivision employed approximately 3.562 persons including
office employees in 1929. Estimated annual sales in 1929 amounted
to $15,952,000 and declined t~o approximately $3,809,000 in 1932 or 76
per cent. Sales for the year 1933 are est.imatedi as $4,469,000 which
represents a 17 per cent Increase over the previous year.
Factory employment in 1929 amounted to approximately 3,184
workers; since then employment decreased to approximately 856
workers in the first quarter of 1933 or 73 per cent. After this period
employment increased steadily to 1,4'23 factory workers as of
October 15, 1933 or 66 per cent.
Man-hours show a trend similar to employment. For 1929 esti-
mated man-hours amounted to approximately 175,120 and decreased
to a minimum of 24,310 in the first quarter of 1933 or 86 per cent;
after this period man-hours have increased constantly to 48,951 as
of October 15, 1933, or 101 per cent. The present man-hiour require-
ments (as of October 15, 1933) are based on a 34.4 hour wecek; conse-
quently the 40-hour week pr~ovided~ in the code wcfill pr'obablyl cause
little further employment inl this Subivri\siion.
The wage provisions for the Subdivision, which is operating uinder
the. Code of the nlunchinery and Alliedl Products Ind~ustryS, provide
that employees engagedl in plant op~erations shall be palid as follows:
(1) in cities of mlore than 50,00O0 population and their immediate
vicinity, 40 cents per houir; (2:) in cities of mlore than. 10,000 but
not mnore thlan 50,000 population and their immedcriate vicinity, which
cities are not in the immedccialte vicinity of a city of m~ore than 50,000
population, 38 cents per hour; (3) in cities of 10,000 population or
less and their immediate vicinity,. wh~ichl cities are nlot in the imme-
diate vicinity of a city of mor~e than 10),000 p~oplaltio~n, 36 cents per
hiour, except tat employees engangedl in, plant opera~tions in all local-
ities in the states of Vli'rginin7, North Carolina, South Carolina,
Georgia, Florida, Tennessee, Alabnmaa Mlisissip~pi, Arkansas, Lou-
isiana. Texas, andi Okllahom~a, shall be paid not less than 32 cents
WVhen females do substantially the same work as males or replace
males, they shall receive the samie pany. H3ow~ever, no female em-
ployee shall be paid less than 87% T"c of the proper rate for the
locality in which employed.
Office. boys and girls and apprentices shall be paid not less than
80%~ of thle minimum wage.
Employees other thlan those engaged in plant operations shall re-
ceive not less than $15.00 per wreek.
Distribultions of theP nulmber of factror workers receivingr classi-
fled rates in thle specified areas are not available. Consequently, it
is only possible to estimate the approximate number of factory work;-
ers who will receive~ the benefit of the p~ropoised~ mlinimlum hourly
rates, regardlless of location, on the basis of the number of factory
workers receiving less than thle designated hourly rates as of June
Estimrated nrum~ber of factory~ worke~rs rcceivin~g less than, designated hourlU
Distribution of factory workers
receiving less than the moini-
mumn regardless of location
Prop7osedl minimum hourly rates
40 cents other U~..S.).-- ~ ~ __~~~... ...... .~._.~.__~ ___~._......... .. .... 28. I 3371
38 cents (other U~.S.).. ..........._~... _~.............. ........... ......... 23. 3 280
36 cents (other U.S.). _-____.~........._....~... ..._____~................. 18.7 224
32 cents (South).. ....... .. .. .... .. ..............._. ~ ___~. 10.6 127
Based on the distribution as of June 15, 1933, and on. the specified
percentages of the number of factory workers receiving less than
the designated rates shlown in the above table, the adoption of the
proposed minimum rates will probably cause an increase in factory
payrolls. The estimated increase as of June 15, 1933, regardless
of location of the workers, will probably, under the most favorable
conditions, not exceed 5.0 per cent assuming only n upward dusment
in the brackets below the 40-cent minimum and ocag nmn
nisumi OF SUPPLEMENTAL CODE
Article. I states the purpose of t~he Supplemental Code.
Article II: accurately defines specific terms applicable to the Sul>
division as used in this Supplemental Code.
Article III provides for the adoption of the employment pro-
visions of the Code of Fair Competition for the Machinery and
Allied Products Industryr, as approved by you, and as from time to
Article IV provides for the adoption of Articles II, VI, VIII and
IX of the Code of Fair Competition for the Mlachinery and Allied
Products Industryr, in accordance with the conditions of this Article
governing their adoption.
Article V p~rovides for the establishment of a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and 'or estima~ting.
Article V'II p~ro-vides t.hat. no products of the Subdivision shall
be sold or offered for sale below a reasonable cost when the Code
Authority decterminires that an emergency exists.
Articrle YIITTI proides for methodsrl of s;t~t~ing up, revising and.
filing price lists and discount sheets and terms of sale and payment.
Article IX sets forth trade practices for the Subdivision.
Article X states that no provision of this Supplemental Code
relating to pricing and marketing shall apply to export sales.
Article XI p provides that this Supplemnental Code and all the pro-
visions thereof are expressly made subject to thle right of the Presi-
dent, in accordance with 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 said Act. Provision is also made that
modifications may be submitted by the Codle Authority to thle Admin-
istrator for approval.
Article XII. No provision of this Supplemental Code shall be so
applied as to pernult mnonopolies, or monopolistic practices, or to
eliminate, op~press, or discriminate against small enterprises.
Article ~III states the effective date of this Supplem'ental Code.
The Assistant Deputy Administrator in his final report to me
on said Supplemnental Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Codle is well designed to promote the poli-
cies and purposes of Title I of the National Induistrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the orgamiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor and
management under adequate govecrnmentanl sanctions and supervision,
by eliminating unfair competitive practice, by promlotingr th~e fullest
possible utilizationl of the present productive capacity of industries,
by avoiding undue restrictions of production (except as may be temt-
porarily required), by increasing tlhe consumptionn of indusitrial and
agricultural products through increasing purchasing power, by reduc-
ing and rel ievi n g u nemiploymeInnt, by imniprov i n sta nd yards of labor,
and by otherwise rehabilitatingi industry.
(b) Said Subdivision normally employs not more. than 50,0)00 em-
ployees; and is not cla~ssifiedl by mie as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Tit~le of said A~ct, including
without limitation Sub~section (a) of Section 3, Subsection ( ) o
Section 7i, and Subsection (b) of Section 10 tht1erof ; andl that thle
applicant association is an industrial association t~rulyersntte
of the aforesaid Subdivision; anid that said association imposes no1lrsna
inequitable restrictions on admission to mnembership therein.
(d) The Supplemental Code is not designed to and will not per~mit
monopolies or mnonopolistic practices.
(e) The Supplemental Codle is niot dlesignedi to and will not elimi-
nate or oppress small entierprisesi and wvill not operate to discrimiinate
(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
For these reasons, therefore, I hav-~e approved this Supplemental
Code, provided that certain prov-isions relating to price publication
are stayed as stated in the Order.
HUan S. JofNSON,
JUY -5, 19341.
BUPPLEMfENTARY CODE OF F~AIR COMPETITION FOR
THE ROLLER AND SILENT CHAIN INDUSTRY'
A DIVISION OF THIE MACHIINERY AND FAILED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial Recov-
ery Act, the following provisions are established as a Supplemental
Codie o~f Fair Competition for the Roller and Silent Chain Sub-
division of the Mlachinery and Allied Products Industry, and to-
gether with the Code of Fair Compet~ition of Machinery and Allied
Products Industry, to which it is a Supplement, shall be the standard
of fair coimpetition for this Subdrrivision, and shall be bindling on each
ARTICLE II DEFINITIONS
"A8pplicanb means the Association of Roller and Silent Chain
Manufacturers, a trade organization, all members of which are en-
gaged in thc ma~nufacture for sale of the products of t~he Roller and
Silent Chain Subdivision of the MSachinery and Allied Products
"~ Industry '! means the M~achinery and Aillied Products Industry,
as defined in its Clode of Fair Competition as approved by the Presi-
dent, and- as such definition may fromt time to time be amended.
"L Subdiv~ision "' means this Roller and Silent Chain Subdivision of
Machinery and A~llied Products Industry as defined and set forth in
paragraph 2S of Alrticle II of the Code of Fair Competition for the
Machinery and Allied Products Industry as follows:
ROLLER AND SILENT CHAlcIN SUlBDIVISION means the manufacture
for sale of sproccket. chain of steel, or other metals excepting malleable
iron, of the types generally known as inverted tooth or silent chains,
finished roller and rollerless-bushing chains (but not those com-
mnonly known as semi-finished chainss, blocks chains having either
coldl drawn or laminated center blocks, and parts thereof, and such
sprocktets thierefor as are manufactured by the manufacturers of
saidl chains, andl inclllude all thoseP engaged in such manufacture for
"L Code~ means the Code of Fair Competition for the M~achinery
andi Allied Products Industry, as approved by the President March
17,'1934, and as fromt timie to time amended.
L Person."' means a natural person, a partnership, a corporation,
an association! a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
Ernployer "~ means any person engaged in this Subdivision of
The Industry, either on his own behalf or as an employer of labor.
"' Employee means any one who is employed in -the subdivision
by any such employer.
The Act means Title I of the National Industrial Recovery
"' The Prlesidenst means the President, of thle Unitedl Sta~tes.
The Adrm.in.istra.tor "' means thle Administrat~or for Industrial
Basic C~ode Autlhority menns the Code Authority for the 1Wa-
chinery and Allied Products Inldustry as constituted by the "iCod~e.
Code A-Juthiority means t~he Code Authority consttte orti
subdivision as providedl by thle Clode andl by this Supplemental
Group CodJe Aurtho~rit!" means the Codle Autlhority for any
group or product classification w-ithiin this subdivision, constituted
under the authority of Article V of this Supplemental Code.
ARTICLE III--EMZPLOYMIENT PROV'ISIONS
The following Articles of the Code, viz: Article III, W7orking
Hours "; Article IV, Waages "; andl Art~icle V, General Labor
Provisions ", are hereby made a par~t of this Supplemlental Code,
with the same effect as if they were written inito this Supplemnental
ARTICLE IV- ADOPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Codle. viz: Article II? "DIefinitions ",
Article VI, "' Administration "', to the extent that. they shall be
applicable to this Supplemental Codle as such or as it. may her~eate
be administered as an autonomous Code; Article VII 'lidiia
tions and Termination ", andl Article IX, ithdrawal ", are! her~eby
made a part of this Supplemental Code with the saime effect as i
they were written into this Siupplemental Code.
A Code Authority is hereby constituted to facilitate the enforce-
ment of this Supplemental Code.
(a) During thle period, not to exceed ,sixty days, following the
effective date of this Code, the Code Committee of the Applicant
shall constitute a temiporary Code Authority. This committee shall
consist of eight members; and the Admlinistrator, in his discretion,
may appoint one additional member withoutt vote and without ex-
pense to the Subdlivision).
(b) To permit representation of employers who are not memers
of the Applicant, thle temporazryT Code Au~thor~ity shall, within sixty
days after this Supplemlenta~l Code becomes effective set up a per-
manent Code Aut~hority by calling a meetings for this purpose of all
known employers in the Subdivision. Said meeting shall be con-
ducted as follows:
1. Each employer shall have one vote which may be inl person or
by written proxy.
2. Procedural rules shall be adopted for Code Authority which
shall (among other provisions) prescribe the number of industry
members thereof which shall be not less than three nor more than
nine. The favorable vote of not less than two-thirds of the em-
players present in person or by proxy shall be necessary for the
adoption of any p~rocedlural rule.
3. Alembers of C~ode A~uthority shall then be elected. One mem-
ber of the. Code Author~ity may be elected by the employers of this
Subdlivision who are not members of the Applicant if there be an.
The Admllinistrator inl his dliscretion may appoint one addition
member of Code Author~ity without vote and~ without expense to the
Any employer in thiis Subd~ivision shall be entitled to share in the
benefits of thle Cod~e Authority, and participate in any endeavors of
this Subdlivision in the preparation of any revisions of, or additions
or supplements to thiis Code, by paying his proper pro rata share of
the r~easonalble cost of creating and administering it as determined
by the Code Aulthority, subject to review by the AQdministrator.
(c) WVheniever the Cod'e Authority is composedl of an officer or
employee of each employer participating in accordance with Section
(b) of Article V, the Codle A~uthority may take any action within
its powers on the affirmative vote of not less than two-thirds of its
members who are eligible to v~ote. In case each employer participat-
ing in accordance with Section (b) of Article V is not represented
on t.hec Code Aulthority by an otficer or employee of such member,
then the Codle Authority mlay act only on the unanimous assent of
all members of t~he Code Authority eligible to vote; provided that
any proposal having a favorable vote of two-thirds but not all of
the mem-bers of thle Codle Authority eligible to vote shall be sub-
mitted to a vote~ of all mpniloyers in the Subdivisio~; n coperatng~~
under this Code; and prov-idetd further upon the written request of
any emnployer in the Subdivision any action taken by t~he Code Au-
thority she'll be submiitted to a vote of all employers in the Subdivi-
sion cooperating under this Code. The Code Authority shall act
on such questions as are referred to the membership for vote, as
determined byr t~he favorable vote of not, less than two-thirds of the
nulmber of eployll\ rer voting.
(d) WVith a view to kreep~ing t~he President informed, as to th~e
observa~nce or nonobser~vance of this Code, and as to whether the
Subdivision is taking appropriate steps to effectuate the declared
policy of the Act, each employer shall upon request of thle Code
Authority prepare and file, with such person or organization as
Code Aut~hority may designate, and at such times and in such manner
as may be by Code Authority prescribed (to be held and used subject
to the limitations of this Art~icle V), such statistics, data or informa-
tion as the Code Authority may from time to time require.
Every employer subject to this Suppleme"ntal Code shall furnish
to Governm~ent Agencies such statistbicatl information as the President
or Administrator may deeml necessary for the purposes recited in
Section 3 (a) of the Act.
(e) Except as otherwise provided in the Act, all statistics, data and
information of the individual employer filed in accordance with the
provisions of the Code shall be kept confidential except with the
consent of the employer filing such statistics, data and information;
provided, however, that nothing herein shall prevent the publication
of general summaries of such statistics, data and information.
The statistics, data, and information of one employer shall not be
revealed to any other employer, except as provided above and except,
that, for the purpose of administering or facilitating the enforcement
of this Ciode, Code Authority, by its duly authorized representatives
(who shall not be in the employ of any employer affected by this
Code, except with the unanimous consent of the emnployers cooperat-
ing under this Code), shall have necess to any and all statistics, data
and information, that miay be furnished in accordanlce w-ith the pro-
visions of this Clode.
(f) For adlministrative purposes, emnployrers may be grouped by
Code Authority to bring into workingr association employers having
common interests and problems that, are not common to all em-
ployvers in the Subdivision. Each such G~roup mnay organlize a Grroup
Code Authority and may adopt such rules for the conduct of the
affairs of tl'he G~roup as are not inconsistent with the provisions of
If formal complaint is made to Code Authority or to a Group
Code Authority that provisions of thiis Code have been violated by
any employer, Code Authority or the Groulp Code Authority having
jurisdiction shall investigate the facts, and to that endl may cause
such examination to be madle as it may deem necessary, and as miay
be permitted by thne Act, subject to the limitations contained in
paragraph (e) of this Article V.
The Code Authority miay utilize t~he facilities of the several Group
Code Authorities in the performance of its duties andc t~he exercise
of its powers.
Any decision of a Group Code Authority~, based upon investigan-
tion or examiination, shall be final, except. t at. appeal mnay be taken
to the Clode Authority, in which cases all pertinent. information in
possession of the Group Code ASuthorit~y shall be turned over by
It to the Code Authority, and the Code Aluthlority shadll pass on
the merits of the case andi make final decision.
(ga) An appeal from any action taken, or any rule or regulation
established by the. Code Authority offecting t~he right. of an employer
or employee in the Subdivision, may be taken to the Basic Code
Authority and thereafter to the Administrator.
(h) It is exp~ressly providedl, that the jurisdiction of Code Au-
thority under this Code over any employer, shall be limited to that
portion of the business andi employment of such emlployer whiich is
within the Subdivision.
-(i) In order that t~he Code Authority shall at all times be truly
representative of the Subdivision and in other respects complyr with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if he shall find that the
Code AuthorityT is not~ truly representative or does not in ot~he~r re-
spects comply wit~h the provisions of the Act, mnay require an a~pr~o-
priate modification in the method of selection of the Code Authority,
or any Group Code Authority.
ARTI~cz VI--ACCOUNTING'C AND COSTING
The Code Authority shall cause to be formulated an accounting
system and methods of cost finding and.,'or estimating capable of use
by all employers of the Subdivision. After suich system and methods
have been formulated,_ full dePtaljs concernmga tfhm shall be made
available to all employers. Thereafter atll employers shall deter-
mine and,'or estimate costs in accordance wTith the principles of such
When the Code Aluthlority determines that an emergency exists in
this Subdivision and that the cause thereof is destructive price-
cutting such as to render ineffective or seriously endanger the mainte-
no~nce of the provisions of this Code, the Code Authorit~y may cause
to be determined the lowest reasonable cost of the products of this
Subdivision, su~ch determination to be subject to such notice and
hearing as the Admninistrator may require. The Administrator may
approve, disapprove or modify the determination. Thereafter, dur-
ing the period of the emergency it shall be an unfair trade practice
for any employer of the Subdivision to sell or offer to sell any
products of the Subdivision for which the lowest reasonable cost has
been determined at such prices or upon such terms or conditions of
sale that the buyer will pay less ther~efor than the lowest reasonable
cost of such products.
When it appears that conditions have changed, the Code Au-
thority, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
AnnICLE VIII-ATETHOD OF PRICINGo
(a) If and when the Code Authority determines that in any
branch or subdivision of the Industry it has been the generally
recognized practice of at least two-thirds of such branch or sub-
division of the Industry, to sell a specified product on the basis
of net price lists or price lists and discount sheets, and fixed terms
of sale and payment, each manufacturer of such product shall,
within ten dlays after notice. of such determination, file with the
proper Group Code Authority (or wTith Code Authority if there is
no Group Code Author~ity having jurisdiction) ,net price liss ore
price lists and discount sheets, as the case maybe niiulype
pared by him, showing his current prices, or prices and discounts,
and terms of sale and payment., and the Code Authority or Group
Code Authority shall immediately send copies thereof to all manu-
facturers of such speci fied products who are cooperating under this
Code. Revised price lists and/'or discount sheets and/or terms of
sale and payment mlay be filed in likre manner from time to time
thereafter with the proper Code Authority or Group Code Authority
by any manufacturer of such product to become operative upon
the date specified therein, but such revised price lists and/or dis-
count sheets undl/or terms of sale and payment shall be filed with
the proper Code Authority or Group Code Authority ten days in
advance of the operative date. Copies thereof, with notice of the
operative date specified, shall immediately be sent to all mianufac-
turers of such product who are cooperating under this Code, any of
whom may file, if he so desires, revisions of his price lists and,/or
discount sheets and/or terms of sale and payment, which shall be-
come effective upon the date when the revised price lists and/or
discount sheets and/or terms of sale and payment first filed shall
go into effect. All price lists and/or discount sheets and/or terms
of sale and payment so filed shall be published by making available
to each consumer or resale buyer the price lists and/or diiscount
sheets and/or terms of sale and payment applicable respectively to
such buyers trade classification.'
(b) If and when Code Authority shall determine that in any
branch or subdivisTio~n of the Indus~rtry not. now selling its product on
the basis of price lists, with or without discount sheets, with fixed
terms of sale and payment, the distribution or maarketing "conditions
in said branch or subdivision are the same as, or similar to, the dis-
tribution or marketing conditions in a branch or subdivision of thie
Industry where the use of price lists, with or without discount sheets,
is well recognized, and that a system of selling on net price lists or
price lists and discount. sheets withl fied t~ermlls of sale and pamnenlt
should be put into efftect in such branch or subdivision, then each
manufacturer of the product or products of such branch or subdivi-
sion shall, within tw~enty days after notice of such determination,
file with the Code Authobrity net price lists or price lists and: dis-
count sheets, with fixed terms of sale and payment and such net
price lists or price lists and discount sheets, with fixed terms of sale
and payment mayl be thereafter revised in the manner hlereinabove
provided. Provided that Codc Authiority shall make no determnina-
tion to place any product of the Subdivision (not now on a price
list basis) on a price list, basis as providedl in this Pararamph (b) of
Article V'III, unless two-thirds of the empl[lo\-ers who are coop~lera~t-
ing under this Supplem~ental C'odc, who ar~e at. that time engngred in
manufacturing such product, shall affirmativetly consent that such
determination be made.
(c) To the extent permitted by the Act, Codie Authority-, for thie
puirposp of de~terminingr lowest reasonable cost, shall have power,
on its own imitiative, or on the complaint of any employer, to investi-
gate any prices lists and*'or discount. sheets andi 'or terms of sale and
payment, so filed wFith th~e Code Authority by any emlployer* and for
the purpose of the investigation t.hereof shall appoint competent
representatives who shall not be an emuployer nor in the employ of
any employer affected by this Code, and Clode Authlority may
require such employer t~o furnish such information to the alfore-
mentioned representatives concerning the cost of such product as
Code Aut~hority shall deem necessary for such purpose, and as may be
permitted by the Act.
(d) No employer shall sell directly or indirectly any product of
the Subdivision covered by provisions of this Article VIlII at dif-
ferent prices or discounts or on more favoraible terms of sale annd
payment tha~n t.hose provided in his own current price lists and,/or
discount sheets and/'or terms of sale and payment.
ARTICLE IX-~UNrBIm PRACTICES
Each of the following acts and practices is deemed to be~ inimical
to the best interests of t.he Su~bdivision, andl of ~the public, and each is,
therefore, hereby declared to be, and to constitute, an unfair method
of competition and is herebyv prohibited, viz:
1. The secret payment of any rebate, credit subsidy, or discount,
in money or otherwise, with intent to influence any sale.
x Bee paragraph 2 of order approving this Code.
2. Ml\aking or promislngr to any purchaser or prospective purchaser
of any product, or to any officer, employee, agent, or representative
ofE any such purchaser or prospective purchaser, any bribe, gratuity,
ift, or other payment or remuneration, directly or indirectly, for
the purpose of influencing a sale, provided that no provision o'f this
Suppleme~ntal Code shall be construed to prohibit free and general
distribution of articles comm~only used for advertising, except insofar
as such articles are actually used for commercial bribery as herein-
3. Any cooperation by an employer in a deviation from the pro-
visions of this Supplemental Codle or of t~he Code, or amendments
thereto, either directly or indirectly, through a distributor or agent.
4. Untruthfully advertising, representing, or markingo any product
with intent to deceivle or misleand prospective purchasers.
5;. To defame or dlisparagje a competitor directly or indirectly by
word~s or acts which untruthifully impugn his business integrity, his
ability to keep his contracts, his credlit standing, or the quality of
ARTICLE X-SALES FOn ExrPonT
The provisions of this Supplemental Code concerning pricing and
markeiting (Articles V'II, V'III and I~X) shall not apply to direct
export sales of any product. The term "L export shall include all
shipments to all places without t~he several states of the United
States and the District of Columbia; provided, however, that no
shipment to any territory or possession of the Unit~ed States shall be
considered an exp~ort when any employer is engaged in the industry
in such territory or possession.
(a) As provided by Section 10 (b) of the Act, the President may
fromt time to time cancel or modify any order, approval, license, rule
or ree-rulation issued under Title I of the Act.
(br Atny amendments, additions, revisions, or supplements to this
Supplemental Code, proposed by Code Authority, and approved by
not less t~han two-thirds of the employers of the Sub~division w~ho
are cooperating under this Supplementall Code shall be in full force
and effect upon approval by the Administrator. The eligibility
requirements, mnethodl, and effect of such voting shall be the samea
as provided by Article V.
This Supplemental Code is not designr~ed to promote monopoly,
and shall not be construed or applied so as to oppress or eliminate
small enterprises or discrimlinate against them, and is designed to
effectuate the policy of the Act.
ARTICLE XYIII-EFFECTIVE DATE
This Supplemental Code shall become effective and binding n al
persons engaged in the Subdivision on the eleventh dayafeit
approval by the President.
Approved Codle No. 347--Supplement No. 24.
Registry No. 1107-3.
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