NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
INDUSTRY AND TRADE
AS APPROVED ON FEBRUARY 2, 1934
WE DO OUR PART
UNIV. OF FL LIB
GOVERNMENT PRINTING OFFICE
Por sale by the Superintendent of Documents, Washington, D.O. - Price 5 cents
Approved Code No. 257
Registry No. 599--18
This pub~lienation is for sale by the Superintendent of Documents, Government
Printing Office, Washington, DA.(. andl by district offices of the Bureau of Foreign
and Domestic C'ommerc~e.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Allanltu,. Ga. f0-1 Ponst (,heie Buildling.
Birmingham, Ala.: 257' Federal Buildlingn.
Boston, Ma~ss. : 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charlesjton, S.C.: Chamiber of Commerce Building.
Chicago, Ill.: Suite 1706. 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dullas, Tex.: Chamber of Commerce Building.
Detr'oit, MIil h.: 801 First Natio~nail Ba\nk Building.
Houston. Tex.: Chamber of Commerce Building.
Indianaopolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo0.: 1028 Baltimore Avenue.
Los, Angetle,~ C'alif.: 1163 South Broadway.
Lonuisville, KJ.: 408 Federal Building.
Mlemphis, Trenn. : 220 Federal Building.
hlnoneapolisj, Mlinn.: t213 Fedieral Building.
New Orleans. La1.: Rroom 223,-A. Customhouse.
Newr York, N.Y.: 734 Custombouse.
Norfolk. V'a.: 406 East Plum~e Street.
Philadelphia, Pa.: 422 C'ommlercial Trust Building.
Pittsburgh. Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215i New Post Offce Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 80'1 Fedlerl'3 Office Building.
Approved Code No. 257
CODE OF FAIR COMPETITION
PRINTING EQUIPMENT INDUSTRY AND TRADE
As Approved on Febrruary 2, 19341
APRmovino CODE OF FAIR COMIPETITIION FOR THE PRINTING EQUIPMENT
INDUSTRY ANIID TRADE
A -nl apic tion having been dluly mlade pursua nt, to and in full com-
pliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933. for approval of a Code of
Fair Competition for the Printing Equipmnent Industry and Trade,
and hearings having been d~uly held thereon and the annexed report
on said Code, containing findings with respect thereto, having been
made and directed to th~e President:
NOWT, THEREFORE, on behalf of the President of the U~nited
States, I, Hugh S. Johnson, Amniinistrator for Industrial Recovery,
pursuant to authority r.esjted in mle by Executive Orders of the P~resi-
dent, including Executive Order No. 6543-A, datted Deemr~ber 30,
1933, and otherwise; do hereby incorporate by reference said annesed
report and do find that said Code complies in all respects withr the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hiereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
the provisions of Article VII, Sections 2 (c), 4 (e) and 4 (f), insofar
as they prescribe a waiting period between the filingr with thle' Code
Authority and the effective date of revised price lists or revised terms
and conditions of sale be and they are hereby stay~e~d pending myj
further Order either within a period of sixty days from the effective
date of this Code or after the completion of a study of open pries
associations now being conducted by the National Recovery Admin-
HOon S. JoBLson,
Adm~~2InZist rafo r for' I ndu~strial: RTecovrery.
Approval recommended :
W~. A. HARRIMArN,
Februm-~y S, 1934
REPORT TO THE PRESIDENT
The IV~nite Howe~.
SmR: This is a. report on the Code of Fair Competition for the
Printing Equipment Industry and Trade, the hearing having been
held~ in Washingrton on the 3d day of October, 1933, mn accordance
with the p~rovisions of the National Industrial Recovery Act.
PROVISIONS AS TO HOURS .AND W~AGES
'Emp~loyment" is limited to 8 hours per day and 40 hours per week,
with thie exception of those employees engaged in emergency, mamn-
tenance, or repair work, and the exception that during a period of
conicentrated demand, a maximum of 8 weeks in any 6 consecutive
months is per~mittedl and the further exception that a tolerance of
10% is permitted for employees engaged mn care and maintenance
of plant and machinery and service men. Overtime on these excep-
tions will be paid for at one and one half times the normal rate.
1Minimuml wages of 40 cents per hour for males and 30 cents per
hour for females are established. The Administrator will call a
hearing not later than 4 months after the effective date of the code
for thle pulrpse of reconsideration of the minimum rate for females.
ECONOMIC EFFECT OF THE CODE
In Junec- 1933, this Industry and Trade comprised approximately
530 concerns and employed 6,337 persons. Since the adoption of the
40-hour week, as provided in this code, employment has increased to
71,142 persons in September 1933, or an increase of 13%0.
The invested capital of the Industry and Trade is about $100,-
000,000, and the average annual value of its products over four years
Schedule A of this code, for the disposition of used and obsolete
printing machinery which has been obstructing the market for new
modern machinery, is an attempt to solve a situation which had a
depressing effect on all capital goods industry. Under this schedule
manufacturers may set up a clearing association which will issue
negotiable certificates of value for this machinery and will also
market serviceable used ma~chineryl to prevent demoralization of the
market for new mnachinery.
The Dep~uty Admlinistrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) Said Ciode is well designed to promote the policies and pur-
poses of Title I of the N1ational Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to dimiinish thle amount thereof and will pro-
vide for the general welfare by promoting the: organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and mnaintainling united action of labor and mlanagemnent
under adlequate governmental sanctions and supervision, by eliniinat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive enpacity of industries, by avo~id-
ing undue restriction of production (except as m~ay be temlporanrily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by rediucing
and relieving uinemployrmet, by impro~vingr standards of labor, and
by otherwise reh~abilitatinga industry.
(b) Said Industry and Trade normally employs not more than
50,000 employees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an industrial and trade association truly representative of the
aforesaid Industry and Trade; and that said association imposes
no inequitable restrictions on admission to membership! therein.
(d) The Code is not designed to and will not permit mzonopolies
or monopolistic practices.
(e) The Code is not decsigned to and will not eliminate or oppress
small enterprises and will not operate to discriminate against thnem.
(f ) Those engagedl in other types of the economic process have not
been deprived of the right to be heardc prior to approv-al of said Code.
(g) D~ue consideration has been given to all protests filed and
revisions made to conform to all of those which wr~ere well founded.
For these reasons, this Code has been approved by me.
HUG S. JoENson,
FEBRUARY 2, 1934.
CODE OF FiAIR COMPETITION FOR THE PRINTING)
EQUIPMENT INDUSTRY AND TRADE
To effectuate the policy of Title I of the National Industr~ial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Printing Equipment Industry and Trade,
and shall be the standard of fair competition for this Industry and
Trade, and shall1 be binding upon every member t.her~eof.
The ter~m Printing Equipment Indust~ry and Trade or the
term Industry and Trade ", as used herein, includes the building,
manufacturing, repairing, selling, importing for sale, and the dis-
tributing of machinery, equipment, and supplies (except as noted
below) used in the Graphic Arts Industry, and in carton plants,
or used mn printing or 12thographing on tin, aluminum, or sinular
metals; and other related branches or subdivisions thereof, as may
from time to time be included under the! provisions of this Code,
buit shall not, include any branch or subdivision thereof for which
a separate code of fair competition has been or m~ay be approved
by the Pr~esident.
The term Graphic Arts Inidustry ", as used herein, is defined
to mean all1 business enterprises engaged wholly or in part in the
art of preparing for representing and/or representing objects
through mechanical means by the processes of printing and litho-
graphinG on pap'er, cardboard, or similar materials a~nd/or by addi-
tionial processes, completing the printed or lithographed materials
into finished procducts. The sulpplies intended to be excluded are
paper and paper produlicts. ink, materials for electrotypers, photo-
engraver, and simnilar platema king supplies; and cloth, cordage, glue,
andi similar bindlery supplies; andi printers' rollers.
The term Employee ", as used herein, includes any person en-
gaged in any phase of the Industry and Trade, in any capacity in
the nature of employee, irr~espective of the method of payment of
The termi Employer ", as used herein. includes anyone for whose
benefit such an employee is so engaged.
The term Mem~ber of the Industry and Trade ", as used herein,
includes anyone engaged in the Industry and Trade as above de-
fined, either as employer or on his own behalf.
The term M~ember of the Code ", as used herein, includes any
Member of the Induistry and Tradle who shall expressly signify
assent to this Code.
The term Person ", as used herein, shall include, but without
limitation, natural persons, partnerships, associations, trusts, trustees
in bankruptcy, receivers and corporations.
The term Effective Date ", as used herein, means, and this Code
shall become etffctive on, the fifteenth (15) ;day after its approval
by the President of the United States.
The ter~m "Adcministration ", as usedl her~ein, means the National
The termi "Admiinistrator ", as usedl herein, means the Adminiis-
trator for Industrial Recovery.
The termi "Act ", as used herein, shall mean Title I of the Niational
Industrial Recovery Act.
The term "'Association ", as used hlerein, means the National
Printing E~quipmlentt Association, Inc.
ARIrrCLE III Honms
1. (a') On and after the effective date of this Code, employees in
the Indlustry and Trade, except as hereinafter provided, shall not be
employed in excess of forty! (410) hours per week;; nor more than
six (6) days per week, nor mnore than eight (8) hours in any one (1)
day, provided, however, that during any period in which a concen-
trated demand upon any division of any plant in the Ilndustry and
Trade shall place an unusual and temporary bur~deni upon its facili-
ties, emnployees of suich division may be permitted to wFork not more
than forty-eight (418) hlour~s per week, provided further, however,
that this exception sh~all not apply in more than eight (8) w~eeks
of any six (6) consecutive calendar months' period. There shall be
a tolerance of not to exceed ten (10) perceent of the above limitations
for employees enlgagedl in the care and maintennance of plant and
machinery, delivery service men, stock. order, reviewing anld receiv-
ingr clerkls andr shipping crews, with payment of overtime at the rate
of time and one half for suchi tolerance, provided, however, that
whereP in aIny cse an emplnoye wo~ks in exrcess of eight (8) hours
per day! or more than forty (410) hours in any onie (1) week, time~
and one half shall be paid for the excess hours w~orked. The max-
imum hours fixed in this paragraph (a) shall not apply to any em1--
ployee on emeprgency mamntenance or emeprgency repair wonrk imvolv-
ing breakdlowns or protection of life or property, but in any\ such
special case at least one and one half times his normal rate shall be
paid for hours worked in excess of the maximum hours herein
(b) The limitations as to hours of labor shall not apply to execu-
tives, factory, and office supervisory employees (not including work-
ing foremen), and technical engineers, commercial outside salesmen,
and field-service men who receive more than th~irty-five ($35.00) dol-
lars per week, and watchmien, provided that watchmnen shall not be
employers m~ore thafn fifty-six (56) hours in, any one (1) week.lfi
1. (a) NTo mnle factory employee shall be paid less thalrin t the rate
of forty' (40) cents per hour andl no female factory employees shall be
paid less than at the rate of thirty (30) cents per hour, except as
(b) Whenever males and females perform substantially the samea
duties under substantially the same conditions, this Code shall assure
equal pay for equal workl and equal opportunity for equal ability
rega rdless of sex.
(c) No reduction shall be made in the rates higher than the mini-
mum rates provided for in the preceding paragraph (a) of Section
1 of this Article, to compensate an employer for any rearrangements
h~e may be required to mak~e to comply with the minimum rates for
the groups specified in the preceding paragraph (a) of Section 1
of this Article. To the extent practicable the differentials now exist-
ing between unskilled, semiskilled, and skilled labor shall be main-
tained or safecguarded, according to the conditions existing in the
various localities, where Mecmbers of th~e Industry and Tradle con-
duct. their business.
(d)r No accountingr or other employee not covered by the preceding
provisions of this Section 1 of this Article shall be paid less than at
the rate of fifteen ($15.00) dollars per week, provided, however, that
office girls, office boys, and messengers may be paid not less than
eighty (80) percent of such minimum wages, provided that the total
number of such employees shall not exceed in any calendar month
five (5) percent of the total number of all employees of said em-
player; providedl, however, any employer employing forty (40) em-
ployees or less in his place of business or any employer employing
no more than fortyl (40) employees in any branch office, sales office,
or warehouse may have two (2) such employees in each such place
of business, branch office, sales office, or warehouse.
(e) Nothing in this Article IV shall apply to, or affect any em-
playece apprenticed to any eniployer by an indenture made in pur-
suanc~e of th~e laws of any St~ate of the United States, or by a writ-
ten contract under any apprentice system established and maintained
by any employer, but all existing and future apprentice contracts
shall be filed wvit~h the Clode Authority. The term apprentice "
means an employee, usually a minor, who agree to serve an em-
ployer for a certain stated period of time at predetermined wages
for the period in order to learn the trade.
(f) A hearing shall be called by the Administ~rator not later than
four (4) months after t~he effective date for the purpose: of recon-
sideration of the minimum rates for females provided in Section
1 (a) of this Article IV.
(2) This Article establishes a minimum rate of pay which shall
apply, irrespective of whether an employee is actually compensated
on a timle rate, piecework, or other basis.
(3) No employee shall be classified in one of the foregoing ex-
cepted classes (Articles III and IV) unless he performs functions
identical with those performed by employees thus classified on June
(41) No person under sirt~een (16) years of age shall be employed
in the Industry and Trade, nor anyone under eighteen (18) y~ears
of age at operations or occupations hazardousinntrordr-
mental to health. The Code Authority shall submit to the Adminis-
trator before March 1, 1934, a list of such occupations. In any
State an employer shasll be dleemledl to-~hcave compllidc' with this pro-.
vision if .he shanll have oin file a certificate or p~ermiit duly iissuedl by
the Authority in. sulch State emrpowlered to issuet empldloymlenlt or age
certificates or permits, showing thaut t~he empllloyee is ofi the r~equired
A RTICLIE V-CODE Am3 SI~ssisturrrxc)
To further effectuarte thle policies of the Acet, a Codle Authority is
hlereb~y set up to ooper~ate with the Admninis I:trator in the admlinis-
tration of this Code.
Orgalnization and Constitultionl of Code~- Aulthority:
1.. Thle Cocde Aulth~ority shall consist of the Executive Conunittee
of th~e Aissociation (nls that Committee is from time to t~imle con~-
stitulted, -provid'edl, however, that unless on~ll other provision be
alpprovedl by the Admlninistrator, the Executive Cormmittee of the
ALssociation shall be comlposedl of not less than five (5) nor more
thlan seven (7) memliber~s). TIo the Code -Authority, as so c~onstitutedl
and established, there may be addedcc suach addlitiolnal member or
members not to exceed twCo (2) as tlhe Admllinist'ator mlay at any
timle decide to be pr~oper~ly pr'cloportionlal (according to such infor-
mation as he may require nonmembersl~t~l~i of thet Assc;Siationl to furnish)
andc to be seleted~ by and to r~epre~sent Mnembercls of the Industry and
Tradte who are not members of the Assc?~iation,, which mnember or
members shall be selectedl by some fair a7nd sati factormehdt
be devised by- the Codle Authority~ and alpprovedl by lthe d Ad Aminis-
t.rator. The Admninistrator, in. hiis di-cre1ttionl, may appoint not more
'th-lan three (3) mlemblers, without vote, as his r~epr~esntalttives; or
as r~epresentativess of such groups or initerests as he ma secfy
2. Al ~cl MemberJ of the Industry and Trade participtng m o
sharlingr the bcnerfits of the activities of the Code Authority shall
bear a pr~opot~ionate shlar~e of the costs of any amendments to this
Code andr of thle expenses of the aldmnillsl:tratin of the Codet, which
proportion shall be based upon the number of employees of each~l
M~embler of the Indlustry3 and Trade, or upon such other~l fair and~l
equ~itable basis as the Code Author~ity may~ specify, subject to review
by: the A~dministraetor, and such funds shall be collected and ad-
milniste ree d by and through the manchinlery of the ALssoc~iation, n thle
agency of the Code Aiuthlority.
3. Eachl trade or industrial association or corporation directly or
indlirectly p~articipanting in the selection or activities of the Code
Authority .iha~ll: (1) TImpose no inequitable~ restr~ictions~ on mnember-
ship,~ andt (") submit to the Adm~iniistrator true copies of its articles
of association. bylaws, regrulation,ly and any amnendmnents when mallde
thereto,~ togcllethe with such other information as to membnle rs-hip,
organization, anld activities as the Admlinistrait or may deem~l1 unnecessary
to effec~tuate th~e purposes of the Act.
4. In ordte tlhat the Code Autho~it~y shall at. all times be truly
representative of the TIndustryg and Trade and in other respects comn-
ply with the provisions of the Act, the Admninistlrator may7 pr1ovide
such hearing~r s as he mnay deem pr1oper!; and, thlerenfter, if he shall
find that the Code Authority is not truly r~ep~~resnta\tive or dloes not
inl other respects comply withn the provislonls of the ActL, mlay require
37671*--313- 185--3-2-- 2
an ap~proprinto miodifientioon in the method~c of' selection. n of thle Ciode
5. If th~e Admlinislt r:tor shalll deterrmine that any actioni of the
Code~ Au~thor~ity' or anyl' agecyI~ ther'of is ulnfair or unj ust or contrary
to t~he publlic interest, the Adminillstratoro may require that suich
action be usplcl~`ende forl a1 period of no~t to exceedl thirty (30) days
to afford an opporltunlity for inve-sfntigation of thle merits of suich
action andl furltherL Cconlsid~elratio n by' 5uch CodeC Authority or aIgency
pendilgr final notion whih1 shall ber takeni only upon approval by the
ArrrunI. V7I-DrrrlES AD POWERs
The Code~~ Aulthlri'ty' shall have the followingr dulties anc p~ower~s
to the exstenlt permitted by the Act.
1. It shall be emp~ow~ere d to o~btain froml MembersJ'' of theC Ildulstr'y
and Tradle and to submit to the' Admiinistra8to r suhl report~ in re-
spect to wnges,~ hourrsl of Inblor, Inumbller of emlployees, 7nd oltherr
condr'itionsi of emplloymentlt and in respicct to production cupineity,
pricres, costs andl stocksl\, as the Codle Aulthcr'ity~ may~~ specify or1 uIs the
Administtrato may require; and in addlition to thle informantio n
thus requliredt~ to be .slbmliftted to the Code~l Authiority,. there shall be
furnrishedl to gFovernml Ientall a eccii:iesi such~ stati tient inlformllation as
the AdminiistrIat~r mayr deemn unnecessary\ fr thle p,~llurpose rccited in
Sectio~n 3 (a) of the Act.
All statistical datal or inlformationl fulrnishedt by\ any1\ Mem~ber of
the Indlustry andl TII;rade in accordanlc-e w\ithl th foregoingr provi-
sions~ shall be collec~tedr and kept in a conf~lidcntial malnlner andr' the
reports of theC individual M~emlbers of th~e Industryl'\ and~ Tr~ade so
colleltedl shall not be divullg~ed to any. other Memlberl of the Indul~st~ry
and Trade or to anyone else nIot edlttledl therleto, except insofar~ as
such dlisclosure1 mnay be nlecessary3 for effecctive~ administration and~
enfor~cement, of thle pr1ovisionls of thiiis Codc.
2. It shllnl be emnpoweredl to iniiurec thle executionl of thle proi'u\iIons
of this Code andi~ provide, in cooperation ith the Admlinistrator,
for the ~omlpliancee of the. Members of th~e Indlustry~l and Tradle with
the provisions of the Codle and of th~e; Act.
3. To alop~t. byinw~s an~d rulcs and~ r~egulationsu for its pr1ocedu~re
in the administration of" this Code, andc to ulse suchl trade asscocia-
tionns and other ageonricis andl to delegate to them suchi of its powers
andr dluties her~eundie r,, as it may dleemi nlecessary for thie effective
accomlplishme~nt of its activities providedl for hlerein, pr1ovid~ed that
nothing herein shall relieve the Code Author~ity of its dluties or
resp~onsibilities and that such trade associations and agencies shall
at all times be subject to and comiply with the prIovtisions hereof.
4. All 1\Iemibers of the Induistry and Trade shall keep, suchl ade-
quatet ac~countiing andl other records as wfill enable them to prepare
and furnishi all data and information wrhichi may~ be r~equired of
them pursuant to the foregoingl provisions.
5. The Code Authorityy shall hiave amiongr its duties, but without
limitation on thie foregioinlg, that of invest~igat~ing complaints from
Members of the Indlustry andc Trade respecting prices or practices
thiat are dlemoralizingi or destructive to the Industry andt Tradle. or
that tend to create a monopoly; and if such prices or practices are
'found to exist, the Codte Authorit ~shall r~epor~t the facts to thle
ARTICLE VII[I[-U;NeAm COMPfIETITIVEr PRACTICES
Unfair comlpetitionl of any Minlembe of the Industry and Trade
shlall be deemed to comiprise any of the following actsi or peneltices:
1. Any and all nonlcomplliancer with this Code.
2. WTilfully selling or offering to sell any machinery and/or
equiipment and/lor supplies at a pricie or upon terms or conditions
thant will result in the customne r paying to the secller for thre goods
r~eceived, less than their asc~ertainlable cost, to be detelrmlinedl accord~c-
ing to sound principles; (a guide to which appears in Exhibit B
attached hereto) except thant a J1emlber of the Industry and TCrade
mlay' sell below his own cost to meet the price of a lowYer-c~ost com-
petitor. Any changes, hereafter mladet, in Exhibit B shall be subject
to the approval of the Admll Iinisten1~tor. This c.laus~e shall not apply
to bona ~fide discontinued lines.
(a) Ever~y manufacturer, dealer and imp~lorter shall estab~lishl his
own list prices for his machinery and equipment and the list prices
for regularly listel mnac~h iner`y and equi>menlt shall be filed with. the
Association as the algency fo the Code Authority not slater thanl
fifteen (15) days after the effective llate of this Code and they shall
become effective on the d7ate filed. The list pr~ices~ so filed shall
remain in effect and no dev~iation may be made from themI1, until
chalngres are made as provided in Section (c) followings. It shall~ be
consideredd an unfair trade p1rac-tic.e for any Mlem~ber of the Industry
and Trade to sell any such machinery and/or equipmntrl at prices
below- those filed byr him with thec Assc~iationI, and then in effect.
(b) ?The A~ssociation may furnish a copy of any price list so filed
wsith it to any manufacturler, dealerl, or importer within. ther Industry
and T~rade who makes writtenl application therefore and who manu-
facturet s or dealsj in manchineryy and/or equipment similar to tha~t
covered by the price list applied for, and the Association shall hold
all such price lists so filed with it available at all times for inspection
by any M~embler of the Industry and~ Trade and by any purchaser or
prospect ive iu rchaser..
(c) Inl order to effect changes in the prices filed as provided in
(a) above, thle mnanufacturller, dealer and importer shlall file notice of
change, including a schedule of new prices, with the A-;sociatio~n at
its head office, anld the nlear pricer shall become effective five (5) days
;3. (a) Manking any trade-in allowance for used or s~condc-hand
machinery or equipmnent accepted in trade as part paymeltnt for nrew
machinery or equipment in1 exc~ess~ of the value of such used or
second-hand machinery9 or eqluipmlent, such value to be etermc~linedl
pursuant to mnethodsi of value-dlet~erniInation or rules alnd I~bregultionsi
therfor tobe frmuate bythe Code Auth~ority, or if it so
dthermines, bythe Execllultive C committee of the Assoc~iationi as the
agency of the Code Author~ity, and to be approedl by the Admlin-
ist~ra.tor'; providers t~hat,_ Ipend~ing such ap~proval by the Admninistirator
a See paragr~aph 2 of Order approving this Code.
on in the event o~f suibsequenit witlulraw~als or suspensions of such
approval. echiT Memberli~ of the Indus~try anid Tradle may accept mn
tradc usedl or sc.ric-lund-hand Iln~~ ilhery\ or equllpmeC~f nt tSuICh values
8.8 50011 J3 011. 13? I llGY deffflill( HP Y,1m tinue to timel.
(b) No ulsed or -c.co!nl-hand malchinery) or eqipmelnnt so- accepted
in tr~ade .hall be dli~spo 0.1~ of unlesss it is scrapped)c~l fo letsi than thle
munll(lt allowed.I' the(~refor'll~ anddtermlined ~pursunutil to the foregtoing
prov\isions~i of thiis Sect~ioinplusr all osts of handrlingr andl recondition-
ingT, p"'''rovided that shou~ldt there b~e sulch a de~clinle in thle general
market prices for malchtiner~y or equiipment, subseqiuent to sixY (6)
months a7fter the effective dante, as wou~llld make the operation o~f this
paragraph (b) of thisi Section inequitable or unjuist, thec Admninis--
tratorl 11y,- upon01 application of thle Code Aulthlority or of any dlirectly
affctdcr Mlemlber o the Industry and Tradel, after suchI notice and
hearings as the AdmllinIjtfratorl may prescribed, granlt such suispenision
of, or manke such exsceptionl to, the pr1ovisionsl o~f th~iis paragraph' (b)
as mn his judgmllentf 3ustfiCe requllires.
(c) A~lemberl~s of the Indu ltr~y andi TI~rade siall fu~rnish to thle Cod~ce
Authority, at uchll -times and1 in sulchl formII as~ it may1! requ~lire~ Su1ch
swBorn r~e~or~ts as may be necessary to asc.ertnin th~e compltlianlce b~y
s.uchl Memtllbers- with thze provisions of this Sect~ion, l 3.
(d) Non1e of the prov,\isiolns of this Sectionr 3 haill aPply~ to, rol-l-fed
genrac~lly used~ for pr'intfing~ the bhv-krt andt whlitte ccctionii of daily
(a) On terms of less thanll twenty-five (23) psercenlt of the list
p~rices in cash and liquidation of the res~iduall indelbtedtnes.- inl subt-
stantinly equanl colnsecutive mnicrthly pa3ymnclf.rt>. nt., to rexced Iwentyr-
four (24) in number; the first dcf1erre paymiienit sh~al matulre within
one (1) m1onth7 fromll f~the daC on which the mazchinel! ri an/cir equip,-
ment is ready for operations or use anid ech~~l one( o-f thc said paymllents
shanll be rep>!revenrted by purchas.~e-moneyc3 notes or1 other ft~rll of
security, bearing inllteret at the rante of not, less than1I SIx (6) percent
per annumlI1, wvhen perm'iiittel by Ifnw, and whenI not:, alt thle legal Irate
()Excep~t that in the casec of an nllreadly estab~rlli.hedll buslines~ with
stsactoryr c1edlit, stalndingr, a mal~nufacturer, dealller, or implor~ter
may within his own discretion extend terms of niot less thann lifteeni
(15)s ~ pe'rc n t. inr caslh of the list prices and liquidationl of thle rcsidual
indebtedness in sulbstantially equal consecutive' e monthly payml~ents,
not to ecee~d thirity-si (:3G) in. number; t~he first dcferred payment
shall manture~ withini onie (1) month fr~omi thle date o~n w\hichl the
manchinery und/or equipmlient is ready for opcraltion n or use andi eachl
onle of the sa idt paymngll~ts sal lI be represent ed by purchase~-mIoney
notels or others fo-rmi oif security~ haring interest at thre raite of not
less than .isi (6) percent pe annum711111, when perm~iittedl by lawr, and
whn-ll not, at th~e Ilegal rate of interest~.
(C) In tranljsal'fctions inv\olv.ing~ tradle-in ll IowanUICe1 for used~1 ma1Chin~-
ery'~ und1/or1 equll~lipmet, the per~lcenltage of enshl pymen'"tSS outlined~i in
(a;) andi (bJ) above\ hall be~ enkulalted on the~ list prices after de-
dctic~ing the t':ulelt-il nilown1:ce.
(d) To avcoid~ unlsatisfactcor and'3 unwound~(111~ prac(t ices, in cases
where credit is extendedc~ for supplies of a cconsumable natlur'e, repair
parts, and service for machinery and equipment, se~ttlc~lemnt shall
be due not later than the! fifteenth~ (15th) day4 of thze m~onthl follow~ing:
shipmen'~t. Such accounlts not paid- within sixty~ (60) days from~ the
date of shlipmecnt should be sub~j~c~ted to an interest charge at the ralte
of at least six (6) percent per annum when permitted by law\, and
wlheni not, at the legal rate of interest;, and said interest should be
computed on each account from the timne the account becomes past
due; if nlot paid within ninety, (90) dals~ froml date of shipment,
further extens~ion of cr~edit to such delinquentllt shall be forfeited
within the discretion of the manufacturers, dealers, andl impor~ters~.
(e) Raltes and terms of Aclc~ountsj for prompt payment may be
established byr? anly maln ifnct ulrer, dealer, or importer, and, if
presentlyr establli hed~, schedul~lest thereof, shall be filed not later than
fifteenl (15) days after th~e effective date of this Code, and they shall
become effective on the late filed with the A~ssociation as the agency
for thie Code Aurthor~ity'. Any sulch ratesj anEd terms there~afte~r
established by any- manufIl iac.t u rerI, dealer or importer shall be filed in
like mannI~Ier with the Aisciociation and shall b~ec~ome et-tective nort later
than five (5) days after1 suchl filing. Such rates and terms of dis-
counts shall not be exceedetd by the Meimberl of the Indul~stry$ and
Trade~~ wiho files then prior to the filing by him of rev\iseld chedrules
with the hlead office of the ASssociation. as provided in paragraph
(f) of this article. Upocn written application by any manufacturer,
dealer, or implorter, wTithin the Industry and Tradlce, the Alssociation
may furlnishl to suchl app~licatnts a copy of! such discounllt schedulles,
and th~e Assc~riation shall hold all sucht discount scheduled s so filed
writh it ava~irable at all times for inspection by any Mathller of the
Industry) and Trade and by any purchaser or proc-spe~ctive purchasers
(f) In border to affect changes in the rates aind te-rms of diiscounts
filed as provided in (e) above, the manufacturer, dealer, or im~por~ter
shall file notice of change, inc~luding~f a schledule of new discount rates,
with the AssociationI, at its heead office, and the new rantes shall become
effec~tive five: (5) days~; after filing.'
5. Any false or misleading advercltisingE, guaranllte~e, or c~laimn con-
cerning a product.
6. Any manlic.i(.us statemen~lts s in d~efamantion of a competitors' prod-
uct, personnel, credit, or financial responsibilityy.
7. Competll llng the purch'lase of a group of products as a considera-
tionl of purchase of one or more products.
8. Selling rebuilt, r~ecocnditionled, oer~hauled,, or used products as
andl for, nlew.
9. Fictitious~ biddll~ng for the purpose of deceiving comnpetitor~s or
pu rchaser~s, or any attempt--thrIough conmiva nce--t o have all bids
rejected to the end that a more advantageous position may be secured
in new- bidding. I1;1 1
10. No Memnber of thle Inldustry and Tradle shall sell a machine
or parts ther~efor, copied or duphecated by such Memer of thle In-
dustry and Trade fromn a mnachline or parts thlerefor, made by an
a Bee pragraph'~1 2 of OrderCL aPPlOirovi this Code.
establishedl manufacturers of p~rinting machinery, at a selling price
unrder the sEllr'.. ascertainable cost.
11. Usingi concealecd subsidiaries or agents, ostensibly independent,
to secure completiti ive nt\advatage.
12. 3Lavishi enrtertainmelnt of culstomerss Or prospective customerss,
their emuployees, or others acting for them.
13. Enticing any'3 emnployeers of competitors wvit~h a viewr of ham-
permng or emnbarrassinlgg competitors in the conduct. of their business.
Nlothingl in this p~aragrap~h will prevent anly employee froml offering
his serv-ices to a competitor o~r prevent any employer from emlploying
an em-ployee off another Alemiber of the Industry and Trade when
the initiativ-e of suich change of employment is taken by the employee.
~14. lProcuring thle bus~incss or tradle secrets of competitors by es-
p~ionage or by br'ibing~ fltheir employee s or others, or by similar mneans.
15. Thr1eats to the tradce andi others of suits for patent inifring~e-
ment arising~ from the sale of alleged infringiing products of com-
petitors, such thrents niot being miade in gdoodfaithi hut for the
purpose of intimidating th~e tradce andl hampering competition.
16. Obliteratjing, r'emoving~, damalgingr, or destroying, or altering~,
or tamrlperingp in anyl manner with trade names or trade ma~rksi, or
serial numbllers of produl~cts withl the intent of esroy~.ningr the identity
of (,riginl of malnuf~acture~ and mInirepr~esentn tin such products; or th-e
imitation of tradite marsi;. trade na~mes,; sloan,7" or other. mariks of
idlentifeation,1 of complletitors.
17. False caimls b~y a deanler in dlomestic products~ of beingr an imn-
poriter, or by an dealer o~f being~ a mianufa cetu'rer or by a mlanulfact urer
olf omeln product of beiingr also th~e producer of thle rawr material en-
ter~ineI inito thet manufacturers~ of saidl product.
18~. Scuringll inl any unlfair' mlanner cuStomler'~s or' prospective cus-
tomeir s signature to n contract t~r'oughi repr~iesentaltion that it i.-
mier~ely an order on appr~oval or otherwise.
19. Maliciously inducing or attemlptingi to induce the br~eachi of an
existing rcontrnelt between c~ompletitor s atnd their customlers or' inter-
fel~rig w\ith or obstructing thie performance of any such contract or
conitractual l ties or services wTithl the: purpose andt effect of hamiper-
inr. 10]jUnngl. Or embarrall'~cSsingT competitors in their busiiess.
to., Dir~ectly or indlirectly tampering with or miisadjusti ng~ a1 comi-
petitor's products in order to discredit thiemi wTith a customer.
21. For thle purpose of hamnperingr or elimiinating competition:
(a) Thie grantinig of, or agr~eement to grant. any secret or unearned
allowance, r~ebate, r~efundl, commiission, or discount, whether in thie
form of molcney, by canicellation of notes or accounts without payment,
or othierise. or extendingf to certain purchiasers special serneces,
privileges. or conlcessionls not extended to all purchasers of same class.
(b) Permiittinig purchasrer~s to retain without. charge maichiines
nd/or equipment or' any part thereof for which an allowance has
(c) ]Furinishingi of mnater~ial or labor or incurring other expense
without adeqcuate and proper charge.
(d)r Fur~nishing,, without charge, inspection. erection, adjustment,
or otheCr service for which a charge shouldl ordinarily be made; or
furnishing such srerv\ices, etc., at less thani an adequate and proper
(e) Allllowi ng ~preferretal discounlllt~ orL aIf~~;llown discounts outside
of the discoulnt period.
(f) A~bsorbing flreiglt~ or otherI tennsporclltat ionl or other charges
properly payable~en by the purIIchaser..
(g gren to griver or givingDr to a new buyer the benlefits of p~ay-
mnents madlte or other crdciitsi estalbli che~d byI the original buyrl for
prod;uc~ts not !et delivelred.
(h)_ Giving clreditsi through allownlleec for advrltising where ad-
ver~tising' of value jus~tifyving the allowancel~r is not received.
(i) Selling ma~chines~ or equllipment or a~ny part flthe'reof for cus-
tomer1's- account and thenl accep~-ting,. byr ass~iognment'll andl without re-
courlse, the derferrdcc par~t of the salts prlice~ as a credit in anrothser
(j) Selling~ newv produ-llcts as d~emo~nitr~ation, exhibition, re'tbuilt,
recondlitioned~. overhau11led,'d or used ma~-ch~inery3 alnd/or equ~ipmnc~rt at
less tha~n thle Current~ll regular list prlic-e of new prodnelt; of like speci-
fications and quality.
(k) Makling atllowa\\nrces for ulsedl machinery or requripmentr l which,
when arcquzired by the cusl~to~mer or prospectiv~_ti e 1ustomerl w~as used'"
andi which has~ bieen in h]is possession for less than six: (6) mlonlths,
or furnishing a customrler or perspective ('ICUitomer with old mach~ines
andr equ~ipm"ent or assisting a customer or pr1ospec~tive culstomrc~l to
obtain sulchI machines or equipment, for tradcing~ purposes.
(1) No M~embercl of the Industry3 and TrIad-e shall give, permit to
be given, or directly o~ff~er to give, anyth~lin~ of value for the purposeij"
of in~flue~lrnci ngr rewalrdingr the action of any emlprloyee, agelnt, or
represenltativre of another in relation to the businless of the employer
of such employee,'t~' the principal> ~ of such agen~lt or thle r~eprlesented
party, w~ithlout the know~ledge of such employer~, principal or party.
-Commercial bribery provisions shall not be constr~ued to prohibit
free and general distribution of articles conunonlyll used for adver-
tising except so far as such articles are actually used for commllercial
bribery as hereinabove defined.
(m) Sub1..sidizingr public ofeiail.s, or emlploees;, or c~ustomler'sa em-
ployees or ~r'osplec~tivc ens~tome r'ss emplloyees or their r~elatives,
through e~mploy-ing or offe1ring to emplloy them, or inz any other
(n) UCs~ing alny method whatsoever to crleate~ the false iipr~essio~n
in t~he mind- s of custo~me~r or pros~ec~tive cucltomler~s or others repre-
sentinga or acting for them, that7t they are b.eilgr offered opportunity
to purchanse unlder~l unusuanlly favorable c~ondcitions, in a mafnner to
hampller or elimlina~te competition.
22. Placingr in a customer's or prospective culstomler's plant any
machine or attachmnent on trial or under conditions tantamount to
trial, except that in the case of any- customers or prospective cuis-
tomer whlo hlas not pJreviously purchasedl or tried any machine or
attachmlent of the samne make and ty7pe, it shall be permissible for
the seller to enter into a contract of sale for a single machine or
attachment, the terms of which. contract may permit its precision by
-the custome~rl if the machine or attanchment, shall fail to operate
and/or produce according to the guarantee of the seller within
ninety (90) daysE fr~om the date of installation; provided, however,
that it shall not be construed unfair trade practice to install newly
dlevelo~l ed modlst c of machlines s or attachlments in a customer's or
pro Ir' civ\e culstomer's` plant foir thp pu1rpose of test~ing their operna-
tionr uwler1'I pretirpal- w~orking conditions.
23. Th~le u~surpiin g of anyi design (or dlrawling of a design) for
pr'intin type)C faces or orn'iameints, originated by a competitors, either
by thle copyinig of suchl design in its original form or after it has
been rconv\er~tedi into, a maitrixi or' other means of reproduction, p~ro-
vided that thijs section sha~ill not become effective unltil standards have
been estab~lished by~ the 1\lembers olf thie Inidustry and Tr~ade con-
cerned andc approv'ed by thle Admlinistrator for the determination
of violations of the tandard~ts. Suchl standards to be effective mlust
be filed w~ith the Codle Auth~ority niot later tfhan ninety (90) days
after the etffctive date.
Th~e application of this~ Sectioni 23 sh~all be limited to the mlanu-
facturiers~ of foundry-enst type and of typ~e-casiting anid type-settinlg
machinery and/or maltr~ice s th~erefor.
ARTICLE \TIII--$URPLUS 11ACHINXES
Thie A~ssociation may o~ganrize andr inicorpor~ate a clear~ing associ-
ation to cope with the problems of uisedl surplus machines and equip-
ment in accor~dance with a plani outlinedl in Exhibit A hereof. WVhen
such corporation is organized, it shiall be under the administration of
the Ass~ocintionl as the agency of the C'ode Auithiority, andi its mnember--
ship shall bje open to all who are subject. to thlis Code. WVithin each
State this Cod'e shall not supersede any law~s of suich State w-ith
reference to thne provisions of this Article VIII, includlinga, also,
any p~rov-isions of or procedure under the voluntary outlined plan
desicribed in Exhibit A~.
1. Empilloyees shall have the right to organize anid bar~gain collee-
tivel~y th~~rouh r~epresellntatives of their own chloosing, and shall be
free froml th~e interfere~nce, restr~aint, or coercion of employers of
flaor, or their agents, in th~e dlesignation of such representatives or
inl self-organizationl or in other concer~te d activities for the purpose
of collective bargEaining or other mutual aid or protection.
2. No emplloyree andi no one seeking emnploymnent shall be required
ass a, condiition of emlploymnen t to join any company uniion or to
refrain fr~om joining, organizing,a or assisting a labor organization
of hiis ow~n ch~oosinga.
3. Emnployers shall comply with the muaximumi hours of labor,
mlinlimumll rates of pay1, and other conditions of emnployment ap~prov'ed
or prscrcibed by the President.
4. Within ench State, Memiibers of the Industr~y and Trade shall
complly with any lawrs of such State imposing more stringent require-
mrents, regulating the age of employees, wages, hours of wForkr, or
health, fire or genieral work~ing conditions, than under this Code.
5. Any wholly owned or controlled enterprise engaged in the In-
dustr~y and Tradle shall, for the purpose of this Code and its adminis-
tration, be considieredl as a p~art of the. Member of the Industry and
Tradle by wThomn it is so owned or controlled.
6. The provisions of thli.; Codle concer~nin g sales, tradlingr allow-
anlces andl sales terms, shall1 not apply to direct expor~t- sales or ship-
mnents of anly prod0~uct. or to sales or shipmnentsi of any products
destined ultimnately for explor~. or to ales or shipmellnt s of parts
ulsed in thle malnufureture~: of p,~~rodctsi for export.
7. Each emlployer~l sharll pio t inl conspicuouls placest- the full labor
a111nd age prov~\isionis o~f thiis Cod~e.
ART'IC'LE X7-C~~.(.I.'1NE.1TION AND) AMlEND~I-NT
This Cod~e and~ all the pr~ovisions thereof are expressly miadle subject
to thie right of the President, in accordance writh1 the pr1oisio~n s of
Section 10 (b) of t~lhe N~ational Industrial Recoveryz3 Act, from times
to time to cancel or miodify~ any order, approval, license, rule, or
regulation, issuedl under Title I of said Aict, andl specifieily~ toJ the
right of the Pr~esident to cancel or mlodify~ his alpprovanl of this Code
or any conditions imposed by himn upon his approval hereof.
Such~ of the provisions of this Code as are not required to be in-
cludedd therein by t.h~e Act, mlly be modified or elimlina~tedc as changes
in cir~cums~tances; or experience miay indicate. It is coltn pntempae
tha~t. fromI timle to timie supplemnentary provisions to this Code or
additional Codes will be submitted for t~he aippr~oval of the Adminis-
trator to prevent unfair competition in price and other unfair and
destructive competitiv~epractices and to effectuate the other pulrporse
and policies of Title of the Act consistent with the pr~ovisions
Uponappova ofany such modlifications, suppleme~ntqry pro-
visiono additional odes~ by t.he Atdmninistrator after such notice
and hearing as he mray prescribe, the same shall become. effective as
and with the effect of provisions hereof. AnyF such modifications,
supplementary provisions, or additional codes may be suibmitted
by the Code Authorityv.
Approved Code No. 257.
Registry` No. 59 -18.
ExuarrI A or AnTIcanm VIII
OUTLINE OF A PLAN SUBMIITTED BY THE INDUSTRY AND TRADE
TO DEAL WITH THE SURPLUS USED PRINTING EQUIPMlENT PROBLEM
The major portion of the available surplus used printing machinery and
equipment rests in the hands of printers and publishers and other principals
engaged in the Graphic Arts Industry. In most cases, they are the outright
owners of it. For the most part, such used machinery is offered for sale not
through dele~lrrs but throughrl other andl vanriousP urnorgnizedl medliums The lack
of a central organized outlet for such used machinery unfavorably affects the
entire Indlustry and Trade in manly ways.
OB~JECT AND INTENT
As anu aid to the Graphic Arts Industry to provide through an authrenticatedl
source for thle disposition of all kinds of used machinery at fair and justifiable
valuations, by~ noting as a negotiator between owners of such used machinery
and prospcctive purchasers through authorized dealers and otherwise, it is
proposedl that there shalll be organized a clearing corporation to ellect a more
satisfactory situation in the common interest.
It is not the intent of this plan to interfere with the right of owners to
sell or deal with used surplus machinery w~ith whomsoever they may choose,
nor is it the intent to prevent dealers in used machinery from purchasing
surplus used machinery in any manner they may see fit, and trade in it, or to
require any~ manufueturer, dealer, or importer to participate in or be subject
to this plan except by his vo~luntary action or assent. The success of the plan
dependsu upon voluntalry cooperative action on the part of the owners of such
used surplus equipment. If it achieves the desired results it will aid the
entire Industry and Trad~--onsumerr and producer--to stabilize employment,
increase wag~es, and enlarge purchasing power.
"( Corpora tio~n."--Na tional Printing Equipment Clearing Assoelat ion.
Industry."--Graphic Arts Industry.
Usell Ma~chin~ery."- Surplus used printing machinery and equipment of a
capital aIsset nature.
New M~achinery."- Newf printing equipment and machinery of a capital asset
81'GGESTFD PLAN AND FUNUPIONs
N'ame olf Organiza~il-l'tionNatina Printing Equipment Clearing Association.
Capita liza tioln.--Based on cash assets. Charrter under New\ Y'ork or other
Stock Subscr~~ipn-TinTo be open to all who are undecr this Code and who
voluntarily participate in the plan. Stock shall be nonassessable.
Registranr of Stockc.--All stock issued shall be countersigned by a duly quall-
fled trust enmpyany to be selected as Registrar.
Stock Nego:ctiability.-Sto c~k shall hanve limited negotiability. Stock to be
sold by\ a1 member shlall be offered first to thle corporation, second to the share-
holders, anld if plurchase fails by either of these two (2) offerings, then the
stock may' be offered to the public.
Management anld Staff'.-Directors, Exccutive Commlnittee, President, Vice-
President.t Secr~etary, and Treansurer. Thle Board shall set up a proper working
Ileadquarters.--Ma intained at sa tisfactory location separnte from that of any
Belling Organization.--Sales of used machinery listed with the corporation
and capable of satisfactory economical use in production shall be effected by
it only through authorized dealers whlo ar'e members of the National Printing
Equipment Association, Inc.
Advert'ising.--Cost of printed matter and advertising shall be borne by the
corporation unless otherwise arranged.
Clondit ion.--Cond ition and com pleteness of used ma chinoery shalli be certi-
fled by owners on appropriate forms.
Appraisal.--On request and at the expense of the ow\ner or purchaser as
agreed, corporation will arrange for appraisal of used machinery, with due
regard to the corporation's valuations, as provided for herein, and to th~e
operative condition, age, and modernism of design.
Stor~age.--Used machinery capable of resale. Pending sale and/or other
disposition and in thre interest of economy, owners should retain custody of
equipment, and in operative condition if possible.
Inspeetion.--Shall be at the expense of owner or purcha:ser, as aglred. Pur-
chaser should inspect ulsed machinery, capable of resale, at thle time of buyig
and if found accepttable, so ack-now~ledge, in writing.
R~epalirs andl New Parts--Expense o~f any such to be borrne by owner or
purchaser, as agreed.
Deivrery~-Azll expense of whatever character incurred in the preparation
for shipment and all shipping and delivery charges shall be borne by owner
or purchaser, as agreed.
Erection--Cost shall be borne by owner or purchaser, as agreed.
Title-Owner shall give Bill of Sale to purchaser w~ith guarantee as to
clearness of title or as to lien or encumbrance of any nature whatsoever.
Sales Price----May be fixed by own~ers of used m~ac~hinery' catpable of resale.
Terms~-All cash, is possible.
Cash Discounlt-Rlate shall be fixed by owners.
Deferred Pay~ments-Ownersr may fix the Terms Price and period of
credit extension where sales are effected oln timle-pay3ment p~lan; corporation
to advise as to any legal limiitations.
Contract and Notes--Corporation wrill have prepared for account of owner,
on request, at his expensce, which will be nominal. Advrisable for corporation
to so act, considering varying legal requirements of different states.
Interest Rate--Six (6) pereeut per annuum, subject to? c~onditiorns of state laws.
Landlord's Lien-W~here state statutes give prior lien to landlords of p~remises
for unpaid rental, corporation will endeanvor to obtain for owner customary
waivers of such lien.
Insurance-M~ainltained at expense of purchaser pending completion of pay-
ments. Corporation shall furnishl list of acceptable c~omplanies, and, where
existent, its interest to be noted, and corporation to follow~ up securing pre-
mium receipts, renewal policies, and direct adjustment of any losses.
Preservation of Lien-W~here state statutes require recording of filing of con-
tracts or mortgages taken back to secure deferred paymuents and renewPals
thereof, corporation will on request arrange for compliance with statutory
requirements for owner, at his expense, which is nominal.
Collections--Unless otherwise arranged, will be mlade by corporation--on
proper assignment of notes and contract; all expenses (which are nominal)
In connection with assignment aInd collections to be borne by owner. If
owner is in need of cirsh, corporation may, on request, endeavor to arrange
for the discounting of the notes at best obtainable rates.
Remi tt ances--Remittances to owner, as a nd when rec~ei ved from purchasers
and in same kinds of money in which payment is made.
Listings-Shalll be promptly referred to authorized dealers.
Priority of Sales--identical used machinery shall be otfered for sale in
order of Listing so far as it may prove to be possible.
Optione--Used machinery capable of resale shall be exclusively Listed with
corporation for sir (6) months' period.
Interim Sales-ITf during this six (6) months' period, opportunity is afforded
owner to effect sale through a source other than the corporation, owner shall
convey full particulars to corporation prior to making any commitment, thereby
avoiding misunderstanding as to expense incurred or othlerwise.
Owner-Identity shall remain undisclosed pending reeelpt of an inquiry.
Listing shall be identified by corporation's record number.
Compensation-For the purpose of providing for administrative, clerical,
advertising, and routine expense and, in the absence of or in addition to a
fixed commission selling charge or precentage, corporation shall be free to
add to thle sale price fixed by owner, a reasonable charge to cover such
expenses. Corporation's fee and charges shall come, if possible, out of cash
payment or, if latter not suffcient to cover, out of cash payment and first
notes paid. For satisfactory services rendered, dealers will receive their
compensation out of equitable charges made by the corporation for services
Reserv~ations-Pending completion of payments on used machinery sold,
the right shall be reserved to owners to withdraw from the corporation any
contract and notes, etc., lodged with it, simultaneously accounting to corpora-
tion for its interest, and expenses, if any.
Alanufacturers-Shlall furnish, on request, to corporation any missing data
available, or history of used mlachinery listed with corporation for sale or
Straitened Circ~umstancss-Ever effort shall be made to obtain the sale
and/or other control of used machinery coming upon the? market as the result
of defunct or bankrupt concerns or consolidations of plants.
Broad Basis of Vanluation-Practically all new machinery is equipped with
certain perishable equipment which, in its first use, becomes immediately
second-hand and of no market value to manufacturers. To meet this condi-
lion and to establish a fair value for surplus used machinery, the Board of
Directors of the National Printing Equipment Association, Inc., shall be
authorized to establish rates of valuation therefore. This Board may take
cognizance of any method or rules and regulations for determining trade-in
allowances provided for in Article VII, Section 3, of the Code for the Printing
Equipment Industry and Trade.
Certificates of Yaolue--Where an owner desires to arrange for the immediate
disposition of his surplus used machinery, corporation may issue, at the owner's
request and subject to inspection as hereinbefore provided, a Certificate of
Value based on the valuations provided for herein, in full settlement for said
surplus used machinery, the disposition of which will then rest with the cor-
porntion. No such certificates, however, shall be issued for used special-pur-
pose machinery, hereby defined to be machinery built to order from specially
prepared drawings and manufactured from specially built jigs, flztures, tools,
and other specially designed manufacturingr equipment necessary in the manu-
facture of such machinery, unless through a dealer the corporation has obtained
in ad'anc~e a bona tide order on a cash basis for such machinery at a satis-
factory price; provided, however, that in such event Certificate of Value shall
not be issued for an amount in excess of its value based on the valuations
provided for herein. Where a dealer in used machinery desires to sell used
machinery to the corporation, the corporation may issue therefore, at the
dealer's request and subject to inspection as hereinbefore provided, Certificates
of Value based on the valuations provided for herein in full settlement for
such machinery, the disposition of which will then rest with the corporation.
The corporation shall accept Certif~cates of Value from dealers in connection
with its sale to dealers of used machinery coming into its absolute possession,
but not in excess of ten percent (10%o) of the price at which such machinery is
sold to dealers by the corporation.
Liquidation of Certificates of Value--ertificates of Value shall be honored
by all manufacturers, dealers and/or importers of machinery voluntarily par-
ticipating in this plan, but only in connection with the purchase of new ma-
chinery in transactions where there are no trade-ins and then in an amount not
in excess of ten percent (10%o) of the list price of new machinery purchased try
the holders of the C~ertificate. Where an aforesaid dealer or importer honors
a Certificate of Value in connection with thle sale of new machinery and/or
equipment, the manufacturer of such machinery and/or equipment shall reimu-
burse the dealer or importer who represents him, for the full value of the
Certificates taken in trade on the sale of new machinery a~nd/or equipment sold
of that manufacturer's make; except that in the case of sales made by dealers
or importers under terms of contracts between them and manufacturers, entered
into prior to the effective dlate of this Code, the manufacturer shall arrange with
the dealer or importer, who sells his goods, for equitable terms and conditions
upon which the dealer or importer shall be reimbursed.
Certificates U~nacceptable Except for Mdachinery--No Certificate of Value shall
be necepted in payment for sale of supplies or equipment of a consumable
unalure; nor shall such C'ertificates be accepted in settlement of accounts or
notes receivable or other indebtedness; nor shall Certifie~nte~s of Value be
accepted as part of a cash payment in deferred payment transactions.
Negotiaability and D~ispolsition of Certificates of Value--Except manulfurctulrers,
Including their representatives and their direct dealers, and importers, any
hohtlers of cer~tificates will he at liberty to sell themi to others who may be in
thle market thlerefor. Field re~p rezreta t ite o f ma1n u fact urers1', dea let s, and
importers, ki~noing w\ho is in the market for new madllineryg w\ill bie in a
position to assist these holdlers to, find an outlet for their certifircatea thrnughl
such printers or publishers as myn be contemp~lating thle prurchnse of new
mac~hiner~y. The corporation w\ill fr'om timle to timne advise thle truelle of any
certifica tes reported to i t as a va nth Ile fr r resale, also, t he mra nrufue~t urers
will receive notices at least weeklyl fr'oml thle corpora1;tion of cer~tifientese issued.
In turn, th~ey will keep their field r~eprelsen ntatives~ informed. Holders of cer-
tifka~tes will undoubtedlly experielcee but little dlifficulty' in tind~ing a ready
ma rket for them.
Maturity of Cr~tifiente s of Va:luM_'ertificates: of V'alue shall Iconse to Iir\ve
anly v-alue after a period of five years fromll thle original date of icsue and1 Sh:lll
after said date of expiration be surrenderedl to- the corporation fo~r ca~nl-llatio~n.
Registration of Certifiedtes of Value-Ciertificates of Value shall b~e void
unless signled by twon separate officers of the corporations andl colunter'sig~ned
by a responsible trust company to be selected as Registrar.
Surrender o,r Reduction of Certificates of Value by Mannufac~ture~rs-Manuu-
falctur~ers anid their deale~rs and/'or importers dlirect Or thlroughl thle mlnlu-
factuers honor~ing tle Ccertificates of V'alue shiall immiediately follow\\ing rcceipt
of settlement for snid new machlineryv, forwa~rd the ('ertifie~ntes of VaRluer to
the corporation for cancellation w~ith a comoplette staltemlent of the tralnsuer~iln in
c~onnecction with whlich the certifiCates were taken. If an amlrunt eqlual to tenl
percent (10?o1) of the list price of newr machinery w\ill not enitirelY exha~ust
a certifiente the p~urchaser will turn the certificate ove~r to thle mianufortur~er,
dealer, or imporlter who will send it to the corp~ratio~n to hve~ thle n~clessary
amount endorsed as a debit thereon, fo~llowing w~hichl the rertifie~nte will be
returned to thle purc~haser to be held for future use.
Outstandingr Certifientes of \'alu ~At least weekly the rcllrporatio~n shall
send to M~embers of the Industry and Trade participating in this ~lanr notices
of the issuance of certificates and shall at monthly intervails furnish to suchl
parties a complete list of outstanding certifkat~es showringr their current value.
Disposition of P~oducts- Imm~edia tely upOn t he su rrenle~r of used mal:ChIinOery
to the corpor'ation undcer the proposed cer~tifiente plan, thle coirporla tion w1 ill
arrange for the resaile of used miachineryg capable of safiSf3etory eCoCnOmUical
use in production thr~oughl authorized dealers and will thloroughly destroy
all used machinery coming under its cointroul which in its judgment'i l ha~ (ensed
to be an economical factor in production.
Not ice to Ma nufnetu rers----anuufact u rers shll I be duly nI?otifi edl I.f th di'C1jS-
position of nil used machinery comingf undler control of the clorporation.
Manufacturers' Record of Equipmelnt- Enchc manufacturer sha~ll fur~nish to
the corpo~ratioin, on forms to be prepared andi readily adapltable to, his busi-
ness, a record of all printingi machineryg manlufacturedl since the year 1913
showing the tieal or enlendar ye'ar illn which such marlirchiner was ma3ulfac~-
tured, model, price, style, serial numnber, andl other descip'tivee infoirmaition
identifying the age of such machinery;, andi shall. thereafter, continue to fur-
nish such information at yearly initervals. Suc;h information will serve as a
guide to thle corporation in determining thle amiount of Ce~rtifieit~s of V'alue to
be outstanding at any onie time. It will also assist in the fixing of raltes of
vaRluatio~n of used machlinery according to nge and mnodernisml of desifn, aind
it will further enable the corporation to defenuine the disposition of such used
machinery as becomes the sole property of the cor'porntio~n.
Purchasers of Used MCachinery Throcugh a Sour'ce O~ther~ than the Corpora-
tion-The corporation will cooperate with thle industry in .cupplylingr the fullest
information regar~rding any used machinery offered to the industry through any
source other than the corporation. Pr'ospective purchaser's would do well, in
all cases, to indicate their intention of purchlas~ing suchl machineryg so that they
may have before them a1 complete hristoryr therreof. This should pr'ove of valu-
able assistance in aiding themi to reach a satisfactory decision.
Dealers' Direct Sales and Purchases~-Dealers should report to the corpora.
tion, on appropriate forms, all used machinery purebased by them or lodged
with them for sale, and the disposition of such machinery. The object of this
is merely to k~eep the corporation informed as to the state of the used machinery
mark-et and its location. It will also aid the corporation in referring listings
to dealers, and, in addition, enable the corporation to advise with dealers as to
inquiries receiv-ed by it from time to time from prospective purchasers of used
ExuIsrr B or SECTION 2L, ARTICLE VII
PRINCIPLES FOR DETERMIINING COSTS
It is not the intention to developl or even tol suggest a uniform system of
cost accounting for thle industry as n whole. There is too much variety in the
character of the several businesses involved to miake such a uniform system
practicable. It is rather the aim to, make c~learl w'hat the elements of cost are
and to outline the general principles upon which they should be assembled
into unit costs, leaving it to each individlual member of the industry to formu-
late his own accounting system in such form as is most suitable and convenient
for the needs of his business: the onlyl stipulation being that the system shall
be so framed as to bring out thle dalta ncctssar- to, coimply with the pr~inciples
here laid down.
There are several kinds of goodsl for which costs will need to be ascertaine:
(a) Standard or universal purpose machinery and equipmient, which is
manufactured on a repetitive basis andi may be built for stock.
(b) Special purpose machinery and equipmllent built to orderly, fr~om specially
prepared drawings and manufactured from spec~iallly built jigs, tools, andr other
specially designed manufacturing equipment necessary for the production, of
(c) A~lachinery and equipment dlealt in but nolt manufaculetur by th~e con-
cern handling it.
(d:, Supplies as distinct fromt ma~chinery and eq~uipmenlt.
The elements entering into costs divide roughly intor two gro~ups. vis: Direct
and Indirect, the former being items which can be identified as appllicnble to a
specific unit of goods or product and the latter, those whichl cannot be so
In building up unit costs the dicl~eentiation between direct coc.sts and indlirect
costs will vary somewhat as betw'ern the four types of goods enume ntedl abi.ve,
but, there need be and should be no variation In the principles inv\olved,. whriCh
are, that each type should carry every element of direct ccsts aIPplicable to
it and also a fair proportion of thre indirect (or ge~neral I costs which cannot be
identitled against a specific unit of goocds olr procduct, surch as indirect m;nanu-
facturing costs; amortization of expense of research andl de\'eloiping and pro-
tecting products; costs of delivery, installation andi service wheree involved~
in the term of sale and price quoted)!; cndminiutrativ nlel ,an erllzI expenses;
selling expenses; taxes, etc.
In the allocation of indirect costs to unit costs there are vr3iou~s methods
which may be used any of w~hich might be suitab~le folr a palrtic~ular case. It is
not intended here to stipulate the use of any particular methodt but only to
stipulate that whatever methlod of allocation is used must be anl equitable
method and in accordance withi recolgnizedl soundl costr-acountil~~ingrac~tiee.
As a general principle, it is recognized that thre fair allo~catio~n of indirect
costs to unit costs necessitates the selectionl as a blase, of a gperiod of sulfficient
length to be representative and during w~hich:l volumue has been normal; othier-
Fise mlisleading cost figuresP will be prlrodced whichl mlight resultl in~ theL ~cmpu-r,
station of a selling price that would re~nder~ ther ma~rket`ing of the gorods
Similarly, in placing on the market new models of mlach~inery. even of thre
standard or universal purpose type, the all-inclusive cost of the first few hatchles
of machines might easily be shown to be higher than a fair selling price, unless
reason is used in determining a fair number of units over which the iniiti:11
costs shall be spread.
Further, in determining the cost of machinery, repossessed because of default
of the buyer, it must be considered permissible to wrrite down, where necessary,
the amount for which the ar'tic~le was repos~seased, to n1 falir inventory value of
It, having regard to: (1) Thle cost of a new article osf similar model and size,
LIINIVERSITY OF FL ORIDA
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172 3 1262 08856 0353
(2) The costs of recondliioning and rehandling, (3) The then current selling
price of the repossessed article, and (4) Any special condition surrounding
Below is given a summary of the elements usually entering into cost.
Naturally it is to be understood that if in any particular business or as to any
particular unit of goods, some one or more of the elements named are not
present, such element or elements should be disregarded.
( 1) Costs of Mlanu facture or of Repairing or Recondi tioning--Direct costs
comprise all expenditures for manterials, labor, and other items which can be
identifiedl as applienble to a specific unit of product.
Indir~ec~t costs of manufacture (sometimes called factory burden or factory
overhead) comprise all expenditures in connection w~ith prodnetion which
cannot be idenutified as applicable to any specific unit of product; such as super-
vision; elevantor service; janitor service; and other general labor; stock keep-
ing, time kieepling and planning and routing work; engineering; packing and.
shipping; perishable tools and other general factory supplies; inspection, pat-
tern expense; power, light, and beat; factory communication; repairs, main-
tenance, and protection of factory properties and equipment; rent and/or de-
preciation at adequate rates of factory properties including machinery and
equipment, and taxes and insurance on such factory properties and on inven-
tories; workmren's compensation and group insurance; costs of welfare and
safety services, etc.
(2) Expense of Research and Developing and Protecting Products-These
comprise the cost of professional and all other work and expense involved in
(a) improving present products, (b) developing new products, and (c) protect-
ing products by patents, trade marks, or otherwise. These should be amortized
over a fair period.
(3) Costs of Delivery, Installation, and Service-Some of these will only
arise in cases where goods are sold delivered or delivered and installed "
at or in customer's plant. They may include freight on goods shipped; cartage
and other delivery costs at destination; wages and expenses of service men
engaged on installation and demonstration of maebinery or equipment; the
cost of rough labor engaged locally to assist said service men; etc.
(4) Administrative and General Expense--This classification includes salaries
and/or other compensation of officers and clerical .staffs except those engaged
in the manufacturing, installation, and selling departments; legal expenses;
losses on repossessions and bad debts; and other expenses applicable to the
business as a whole rather than to any particular department or classifleation.
(5) Selling Expense--This includes all salaries, commissions, and other com-
pensation of salesmen or selling agents and their traveling expenses; salaries
of general employees at branch sales offices and all rentals, taxes, and expenses
applicable to such branch offces; salaries and wages of employees engaged at
head office in selling work and all expenses incurred at head office applienble
to sales, advertising, and publicity, etc. Selling expenses do not include
salaries of installation and service men, as these fall within group 2.
(6) Taxes--Th'ese include Federal and State franchise, capital stock, and
corporation taxes; and all other taxes except those applicable to factory
properties and inventories and sales offices.