For sale by the Superintendent of Documents, W'ashington, D.C. ------- Price 5 cents
Approve@*C~ode No. 84--Supplement No. 31
Registry No. I128---08
Do OUR PART
GOVERNMENT PRINTING OFFICE
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIhR COMPETITION
WARM AIR FURNACE PIPE
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON M~AY 18, 1934
UNIVI. OF FL LIB.
DOCU NTS Dep .
This publication is for sale by the Superintendent of Documents, Government
Printing: Office, Wasshington, D.C., and by district offces of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMIERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mlass.: 1801 Customhouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonv-ille, Fla.: Chamber of Commerce Building.
Kasnsas City, Mlo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Kyv.: 4085 Federal Building.
Miemuphis, Tenn.: 229 Federal Building.
M~inneapolis, Minun.: 213 Federal Building.
Nuew Orleans, La.: Room 225-A, Customhouse.
New Y'ork, N.Y.: 734 Customhouse.
Norfolk;, Vas.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New~ Post OfFice Building.
St.. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wansh.: 809 Federal Office Building.
Approved Code No. 84l-Supplement No. 81 `Regisrtry No. 1128-03
SUPPLEMENTARY CODE OF FAIR COMPETITION
WTAR AIR FURNACE liFPIP A~ND FITTINliGS
As Approve~d on M~ay 18, 1934
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read "( plate".
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Approved Code No. 84--Supplemen~t No. 31
SUPPLEMENTARY CODE OF? FAIR COMPETITION
WARM AIR IFURNA~CE PIPPE AND FITPTIINGS
MANUFACT~C URING~ INDU7SrTRY
As Appro-ved On 1Mayr 18, 1934
APRe\Norm SUPPLEMIENTARY CODE OF ETAIR COMPETITION 3FOR THIl
W7CannI AIR FURNACE PIPE A~ND FITTINGS ~MANUFABCTURlIPNG
A DIVISION OF THE FABRICAT'ED METAL PRODUCTS MIANUFACmTUIING1 AND
ME~TALT FINISHING AND) M~ETASL COATING; INDUSTRY
An application having been duly made pursuant to and in fEull
compliance with the provisions of Title I of the N~ational Industrial
Recovery A)ct, approved June 16, 1933, and in, accordance with the
provisions of Section I of Article VIE of the Basic Code for the
~Fabricated Metal Products Manufacturing and M~etal 1Finishing and
Metal Conting Industr, approved November 2,o arCmeiinfrteWr 191933, for approval of
a SupplementaryCoeo irCmeiinorteWr Ai
Furnace Pipe and F~litting~s Mlanufacturing Industry, and hearing
having been duly held thereon; and the annexed report on said
Supplemnentary Code containing findings with respect thereito,
having been made and directed to the President:
NOWl TH[EREFORE, ion behalf of the Presid~en~t of the United
States, I, Hugh S. Johnson, Administrator for Industrial Reco~very,
pursuant to authority rested in mebyExecutive Orders of the Pres-
ident, including Executive Order N.6543-A, dated~ December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find tha8t said Supplementaryr Code complies in all re-
spects with the pertinent prov-\isions and will promote the policy and
purposes of said Title of said Act; and do hereby order that said Sup-
plement.aryr Code of Fair Competition1 be and it is hereby appr~oved;
provided, however, t.hat the provisions of A~rticle VII, Paragraph
(a) insofar as they prescribe a waiting period between the filing writh
the Code Aluthority (or such agency as may be designated in the
Code) and the effective date of price lists, as originally ~filed and/or,
revised price lists or revised terms and conditions of sale, be and,
they are stayed~( spending my further Order.
HUGII S. JOHNSON,
Admi~nist~rator for Indwtusrial~ Recovery.
Approval recommended :
A. R. GrLcNCy,
Alay 18, 1934.
REPORT TO THE PRESIDENT
Ts ~lheT ite Hozus~e.
SIR: This is a report on the Supplement~ary Crode of Fair Compe-
tition for the W'arm Air Furnace Pipe and Fittings Mlanufacturmg
Industry a division of the Fabricated M~etal Products MTanufactur-
ing and Mretai Finishing and Mletal Coating Industry, the hear'~
having been conducted thereon in WTashington, D.C., February
1934, in accordance with the provisions of Title i of the Nationa
Industrial R~ecovery Act.
The W~arm Air Furnace Pipe and Fittings Manufacturinga Indus-
try, being truly representantive of this division of the Fabricated
Metal Products Mlanufacturing and Mietal Finishing and Metal
Coating Industry, has elected to avail itself of the option of sub-
mitting a Supplementary Clode of Fair Com~petition, as provided for
in Section 1 of Article VI of the Basic Code, for the Fabricated
Metal Products Ma~nufact~uring and MIetal Finishing and Met~al Cont-
ing Industr~y approved by you on the second day of November, 1933.
RESUME OF THE CODE
Article I states the purpose of the Supplementary (Jode.
Article II accurately defines specific terms employed in the Sup-
Article III. This Industry is a division of the Fabricated Mlletal
Products Mannufacturing and Mietal Finishing and MIetal Coating
Industry and the labor ~provisions of its Basic Code, as approved
November 2, 1933, ar~e the labor provisions of this Supplementary
Article IV establishes a Supplementary Code Authority consisting
of six (6) members to be elected by the members of the Industry at
a mieet~ing called by9 the Temporary Supplementary Code Authority
and gives the Admmnist~rator the authority to appoint one additional
mlember without vote and provides machinery for obtaining statistics
and the administration of the Supplementary Code.
Article V provides for an accounting system and methods of cost
finding and./or estimating.
Article VI provides for determining the lowest reasonable cost of
the, products of this Industry.
Article VII provides for methods of setting up and revising price
lists, and for investigation of price lists and terms of sale.
Article VIII sets forth the unfair trade practices of this Sup-
plemlentary Code which has been especially designed to offset unfair
competition in this division of the Industry.
Article IX provides against monop~olies alnd monopolistic practices.
Article XY contains the mandatory p~rovisions contained in Section
10 (b) and also provides for the submission of proposed a~mendlments
to the Supplementaryq Code.
Article XCI recog~nizes that, price increases be limited to actual
additional increase in the seller's costs.
Article XII states the effective late and dluration of this Supple-
Th~e Deputy Aidministr~ator in. his final report to mne on said Sup-
plementur~y Code having found as herein set forth and on the b~asis
of all the proceedings in. this mantter:
I find7 that:
(at) Said Supplemnentary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
A~ct, including removal of obstructions to the free flow of interstate
anrd foreign commerce which. tend to diminish the amount thereof
and will provide for the general welfare b~y promlot~ing the organiza-
tion of industry for the purposes of cooperative action among the
trade groups, by inducing and maintaining united action of labor and
management under adequate governmental. sanctions and su~pervision,
by eliminating unfair competitive practices, by promoting the fullest
possible utilization of th~e present productive capacity of industries,
by avoiding undue, restriction of production (except as may be tem-
porarily required), by increasing thie consumption of industrial. and
agricultural products through increasing purchasing power, by re-
ducingr and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industryr normally- employs not more thanr 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Supplementatry Code as appro-ved complies in all re-
spects with the p~e~frtinent provisions of said Title of said Act, in-
cludingg without liits~tion Subsection (a) of Section 3, Subsection
(a) of Section 7, and Subsec~tion (b) of Section 10 thereof ; and that
the applicant group is an industr!al group truly representative of
the aforesaid Industr~y; and that said group imposes no inequitable
restrictions on admlission t.o membership therein.
(d) The Supplementary\ Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary9 Code is noit designed to and will not;
elimmnate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have
not been depr~ivedi of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplemnentary:
~Huan S. JOHNSON,
M~aY 18, 1934~.
SUTPPLEMCENTARY' CODE OF FAIR COMPETITION FOR
THE WVARMI AIR FURNACE PIPE ANTD FITTINGS MAN-
A DIVISION OF THE FABRICATED MCETAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND 31ETAL COATING INDUSTRY
To effectuate th~e policies of Title I of the National Industrial
Recovery Act, the: following provisions are established as a Sup-
plemnentary Code of Fair Competition for the Warm Air Furnace
Pipe an~d Fittings Mannufacturing Industry. Pursuant to Article
VI of the Basic Code of Fair Clompetiton for the Fabricated Metal
]Products Mlanufacturing~ and M~et~al Finishing and MIetal Coating
IndustryS, approved by the Pre~sidlent of thie UTnited States on the
second day of Nov~ember, 1933, the provisions of this Supplemnentary
Code shall be the standlardl of fair competition for and shall be bind-
ing upon every member of the Industry.
ARTICLE II- DEFINITIONS
SEcTION 1. The term W\arm Air Furnace Pipe and Fittings
Manuirfacturing Indlustry as defined herein means the ma~nufac-
turingr for sale or exchange of warm air fur~nace and~ flue pipes,
elbows, or fitings manufacturedt from galvanized steel or iron, tin
pinc~e, black steel or iron, or other basic mnaterials used in substi-
tultionl thrie'` f.
SLECTIONS ',. Th~e terms '' Pr~esidelnt ", LACt ", and "LAdministrator "
as used herein shall mean respectively the President of t~he United
States, the National Indlustrial Recovery Act, and the Administra-
tor for IndustrialR Recov-ery under said Act.
S6CTIOno 3. The terml member of t~he industry as used herein
includes but without limiitation any individual, partnership, asso-
ciation. cor~poraftion~ or other formn of enterprise engaged in the
Industry~ either as an emiployer or on his or its owrn behalf.
SECTION =1. Tile term' BRSIC C'Ode as used herein is defined to
mean the Basic Code of Fair Competition for t~he Faibricated Mletal
Productsi M~anufacturing and~ Metal Finishing and Mietal Coating
Indullstry as approved by the President of the United States on the
second day of N'ovemb~er, 1933.
SECTION 5. The. term '' employee "' as used herein includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of suich
co m1pen satliOD.
SCECTION 6. The termi employer as uisedl herein includes anyone
by wom ny uchempoyee is comp~ensated or erilployed.
SECTIlON .g Tuh termp Bupplemnentary Codle Authority as used
heirein menclic the agency! which is to administer this Supplementary
Code as hereinafter provided.
SECTION 8. The termn Institute "' as used herein means the F'ur-
nace Pipe Institute or its successor.
SECTION 9. The term "LAssociat~ion as used h~erein means thne
Eastern Pipe and ElbowP M1\anufac~turerss Association or its successor.
SECTION 10. The term Confidential Agent as used herein, is
defined to mean the impartial agency designated by the Supplemnental
SECTION 11. The term '" Supplementary Code Commiittee as rised~
herein is defined to rnreanl the committee author~ized5 to present this
SECTION 12. Elenever HSed in this Supplementary Code the terms
set forth in this Article II shall, .unless the context shall otherwise
indicate, have the respective meanilngs as hereinabove in. this Ar~ticle
I[I set forthn. The definition of any such term in the singular shall
apply to the use of suchl term. in the plural and vice ertlsal.
ARTICLE III- EluPLOYM\3ENTI PnovIslows
This Industry is a division of the Fabr~icated M~etal Products
M~anufact~uringr and Metal Finishing and Metal Coating Industry,
and without limitation the wage, hour and labor provisions in Arti-
cle III of its basic code as approved by the Presidecnt November 2,
1933, including Section. 1 of said Article III by which the provisions
of Sub-sections (1), (2) and (3) of Section 7 (a) of Title I of the
Act are made conditions of this Code, are specifically incorporated
herein and made a part hereof as the wage, hour and labor provsio~ns
of this Supplementaryp Code.
AnrIcLE IV--ORGANrIZATION AN~D Amurwihsynal~ow "
SECTION 1. During t~he period not to exceed sixty (60) days fol-
lowing the effective date, the Supplementary Code Colmmittee of the
Industry shIall constitute a Supplemnentary Code Authority until the
SupplementaryT Code Authority is elected. There shall be consti-'
tuted within the sixty-day period a SuIpplementary Code Authority
consisting of six (6) members to be elected by the members of the
Induist~ry, at. meeting called by the Temnporary Supplemlentary Code
Authority, upon ten days' notice sent by registered mail to all known
members of the Industrly, who may oeete npro rb
proxy. Th~e members of the Suplemenotaroe Auth n esolorit fir
elected shall serve until the followmg annual meeting of the Ahssoci-
ation and Institute, and thereafter, members of the Supplem~entary
Code Authnority shall be elected at each annual meeting of the Asso-
ciation and In's~titulte to serve until the following annual meeting.
The members of the Sup~plementary Code Authority shall be elected
in the following manner:
(a) Two members who are not members of the Association or
Institute by a majority vote of thne members of the Industry present
in person or by proxy, each members to have one vote.
(b) Two members who shall be members of the Association byr a
majority vote of the members of the Association, present in person
or by proxy, each member to ha~ve one vote.
(c) TwPo members who shall be members of the Institute by a
majority vote of t~he members of t~he Inst.itut~e present in person
or by proxy, each member to have one. vote.
A ,vacancy in the membership of the Supplementary Code Author-
ity may be filled by a miajority vote of the remaining members of the
Su~pplementary Code Authority.
In addition thereto the Admninistrator may appoint a member
of the Supplementary Code Authority who shall be without vote
and shall serve without expense to the Industry, unless the Supple-
mentury Code Authority agrees to pay such expense. The repre-
sentaltive who may be appointed by the Administrator shall be
given reasonable notice of all meetings and may sit at all meetings
of the! Supplemlentary Code Authority.
SECTION ':. Any Association Institute directly oridrcl ar-
ticipating in the selection or activities of the Au pplemenao ndetary Code
Authority shall () impose no inequitable restrictions on member-
ship, and (2) shal use due diligence inl submitting to the Adminis-
trator true copies of the Articles of Association, By-Laws, Regula-
tions and any amendments whlen made thereto, together w~ith such
other information as to membership, organization, andi activities as
mayl be r~easona~blyv necessary to effectuate the purposes of the Act.
SECTION 3. In order t~hat the Supplementaryg Code Authority, shall,
at all timess, be trulyS representative of the. Industry andl in other
respects comnply with the provisions of the Act, the Admninistrator
may prescribe such hearings as he may reasonably deem proper,
and, thereafter, if he shall finid that t~he Supplementar Code Au-
thority is not truly repr~esentativee or does niot in o hr respects
comply wiith the. provisions of the Act, mnay require the removal
of any or all of the miembersj thereof and may make appropriate
modification or modifications in the methods of selection of the
Supplemnentaryr Code Authiority. nutS aesbjc voters
SECTION -1. All1 members of teIdsr r ujc voters
diction o~f the Supplementaryv Codle; shall be entitled to participate
in and share the benefits of the Supplemenltary Code; shall be en-
titled to vote in the selection of members of thie Supplementary
Code Authority' as provided in Section 1 of this Article, and shall
pay their reasonable share of the expenses of thle Administration
of this Supplementary Code, such reasonable share to be determined
by the Supplement~ary Code Authority, subject to review by the
Administrator on the basis of volume of business and/or such other
factors as may be deemedl equitable.
SECTION 5. Nothing contained in this Supplement~ary Code shall
constitute the members of the Supplementary Code Authority part-
ners for any purpose. Nor shall any member of t~he Supplementary
Code Aut~horlty~ be liable in any manner to anyone for an~y act of
anyr other member, officer, agent or employee of the Supplementary
Cfode Aulthority, nor shall any member of the Supplementary Code
Authority, exercising reasonable diligence in the conduct of his
duties hereunder, be liable to anyone. for any action or omission
to act under this Supplementary Code, except for his own wilful
mnisfea~sance or non-feasance.
S~ECTroN 6. The Supplementary Code Authority shall also from
time to time furnish to the Basic Code Authority, designated in said
Basic Code, such information as may be required to be furnished
under terms of said Basic Code.
SECTION 7. The Supplementary Code Authlority shall have all the
powers and duties which shall be necessary~ and proper to enable it to
fully administer this Supplementary Code and to effectuate its
Without limitation to the. foregoing, o n ohrpoesordte
provided for in this Supplementary Code, the Supplementary Code
Authority shall have the following specific duties:
(a) To adopt by-laws and rules and regulations for, and keep
records of its procedure and the administration of this Supple-
(d) To designate a confidential agent who shall obtain from mem-
bers of the Industry such information and reports as are required
for the administration of t~he Supplementanry Code, provided that all
such reports and information shall be treated as confidentinI by thte
Supplementaryg Code Authorit~y and each member thereof, and shall
not be disclosed to any other member o~f the I~ndulstry or any other
party except where necessary in the enforcement of this Supple-
mentary Code or to such governmental agencies as may be directed
by the Administrator, and provided further that nothing in this
Supplementary Code shall relieve any member of the Industry of
any existing obligaations to furnish, reports to any government agncy!~.
(c) To use such trade associations and other agencies as it dleems
proper for the carrying out of any of its activities prov~idedl for
herein, providedr t~hat nothing herein shall relieve the Suppllemelnt r~y
Code Authority of its duties or responsibilities under this Sup-ple-
mnentary Code and that such~ trade associations and agencies~ shall
at all times be subject to andl comply with the provisions hereof.
(d) To make recommlendat~ions to the Administrator for the co-
ordination of the administration of this Supplemlentary Code withL
such other codes, if any, as may be related to the Industry.
(e) To secure fr~om members of the Industry an equitable and
proportionatee payment of the reasonable expenses of manintainingr
t~he Supplementury C~ode Authority and its activities.
(f) To cooperate with the Admimistrantor in Iregulatingr the use of
any N. R. A. insignia solely by those members of the Industry who
have assented to, and are complying with, this Supplementury Code.
(g) To recommrend to t~he Administrator further fair trade prac-
tice provisions to govern members of the Industry in their relations
with each other or w~ith other industries and to recom~mend3 to thne
Administrator measures for industrial planning, including stabili-
zation of employment.
SECTION 8. Every employer shall provide for the safetyg and
health of employees during the hours and at the places of their em-
ployment. Standards for safety and health shall be submitted by
t~he Supplementary Code Authority to the Administrator within six
months after the effective date of the Supplementary Code.
SECTION 9. If the Administrator shall determine that any action
of a Supplementary Code AuthorityS or any agency thereof may be
unfair or unjust or contrary to the. public interest, the Administra-
tor may require thant such action be suspended to afford an oppor-
tunity for investigation of the merits of such action and further
consideration by such Supplementary Code Authorityv or agency
endnring final action which shall not be effective unless t~he Admiinis-
trator approves or unless he shall fail to disapprove after thirty
days' notice to him of intention to proceed with~ such action in its
-original or modified form.
ARTICLE VT-ACCOUNTING AND COSTING
SECTION 1. With respect to that portion of his product which is
within thie Industry, every member of this Industry shall use an
accounting system for determlining his allowable cost which con-
forms to the principles of, and is at least azs detailed and complete
as, the uniforru method of accounting, and the uniform method of
costing, to be formulated by the Supplementary7 Code Authority
and approved by the Adcministrator with such variations therefroml
as may be required by the individual conditions affecting any miem-
ber of this Industry or group of members of this Industry.
SECTION 2. 110rEen the Supplementary Code Authority determines
that an emergency exists in this Industry and that the cause thereof
is destructive price-cutting such as to render ineffective or seriously
endanger the maintenance. of the provisions of this Supplemnentary
Code the Supplementary Code Authority may cause to be deter-
mine$ the. lowest reasonable cost of the products of this Industry,
such determination to be subject to such notice and hearing as t~he
Administrator may require. The Adiministrator may approve., dis-
approve, or modify the determination. Thereafter, during the
period of the emergency, it shall be an unfair trade practice for any
member of this Industry to sell or offer to sell any products of the
`Industry 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 therefore than the lowest reasonable cost of such prod-
ucts. W~hen it appears that conditions have changed, the Supple-
mentary Code Authority, upon its own initiative or upon the request
of anyl interested party, shall cause the determination to be
ARTICLE VI-SrELLINGrT BELOW COST
No member of this Industry shall sell or exchange any of the
products of this Industry, at a price, or upon terms and conditions,
which wrill result in the purchaser paying for the goods received,
less than t~he allowable cost thereof to the seller, determined in
accordance with a uniform method of costing above described;
provided, however, that dropped lines, or seconds, or inventories
which must be converted into cash to meet emergency needs may be
disposed of by any mlemberr of this Industry, at any price and on any
terms and conditions, but only if such member of this Industry,
not less than two weeks before such disposal, has filed with the
Supplementary Code Authority or its Confidential Agent, a state-
mnent in writing, setting forth the fact of, and reasons for, such
proposed disposal, and provided further, that any member of this
Industry may sell below his costs in order to meet competitive prices
filed in accordance with the provisions of Article VII of this Sup-
plementary Code, or to meet competition from products of equivalent
design, character, quality, or specifications manufactured outside
the United States, provided that he has first' so reported to the
Supplementary Code Aut.hority a~nd in such report has cited the
competition which caused him to takre such action.
ARrICLE VII--PRICE ;ISTrs
(a) Each members of t.he Industry shall within ten. (10) days
after thle effective date of this Supplementary Code, file with the
Supplementary Code Authority through. its Confciential Ag~rent, a
net price list, or a price list and discount sheet, as the case may be,
individually prepared by him, and in such form and for such prod-
ucts as the Supplementary Code ~Authority may pr~esicribe showing
his current prices, or prices and discounts, and terms of sale and
payment, andi the Supplemnentary Code Authority through its Con-
fidential Agent shall immediately send copies thereof to all known
manufacturers of such specified product. Such price list shall be
availa.ble to all interested buyers at the office of the Confidential
Revised price lists and/'or discount sheets and/or all other condli-
tions of sale may be filed from time to time thereafter with the
Supplementary Code Authority through its Confidential Agent by
any member of this Industry, but; such revised price lists and/or
discount sheets and/or all other conditions of sale shall be filed with
t~he Supplemlentary Code Author~ity through its Confidential Agent
and shall become effective fivle (5) business days after actual receipt
by the SupIplemlentary Code Authority- through its Confidelntial
Agent. Copies of such revised price lists and/or discount sheets
and /or all other conditions of sale with notice of the effective dal~te
specified, shall be ilmmediately sent to all known manufacturers of
such product andt shall be available to all interested buyers at the
office of the Confidlential Ag~ent, any of whnomn may file if he so dlesires,
to become effective upon t.he? date when the revisedl price list and/or
discount sheet and 'or all1 other conditions of sale first filed shall go
into effect revisions of hlis price lists, and/or discount sheets and/or
all other conditions of sale establishing- prices- orpiesaddicut
not lower or c~ondit~ions~ of sale not more favorable than thoseii estab-
lished in th~e revised price limits and/or dliscoulnt sheets and/or all
other conditions of sale first filed.l
(b) If and when the SupplemerntaryT Code Authority~ shall de-
termine tha~t in any branch or subdivision of the Industry not now
selling its product on the basis of price lists, with. or without dis-
count sheets, with fixed termsY of sale a~nd payments, the distribution
and marketingr conditions in saidl brlanch or subd~ivision are the samle
us, or simiilar to, the distr~ibutionI and ma~rketinr `conditio~nsc in a
branch or subdlivision of t.h~ef IndustryS where the use of pr~1ice lists,
w~ithi or without discount sheets, and other fixed~ conditions of sale,
is w~ell recognized,. andl thlat Industry where the use of price li ts,
w~ith or ~ithlout discoulnt sheets, with other fixed conditions of sale
should be put. into effect~t in such branchl or subdivi\ision, then each
manufacturer of the product or producl~cts of such. branch~ or subdi-
a See paragraph 2 of order approving this Code.
vision shall wijthin twenty (20) devs after notice of such determina-
tion, file with thle Supplemenntary Code Authority net price lists
or p~riceC lists andl discount. sheets, containing all other fixed condi-
tions1 of salet andl such~I picel~ lists and/lor discoulnt sheets and/.or other
fixed conditions of sale may be thereafter revised in t~he manner
hlerein above pr~ovidled; providesd, however, that the Supphnentary
Code Authority shall make no determination to place -any product
of the Indulstryv not now on a price list. basis on a price list basis
as proviided in this paragraph (b) of Article VII unless two-thirds
of the mnemlbers of the Industry who are at that time engaged in
manufacturing such product, shall affirmatively consent that such
determination be made.
(c) No member of th~e Industry shall sell, directly or indirectly,
by any means whatsoever, any product of the Industry covered by
provisIons of this Art~icle VII at a price or at discounts, or on other
conditions of sale different fromn those provided in his own current
net price lists, or price lists and discount sheets.
A-RTICLE Y111- UNF.11R TRADE PRACTICES
In addition to the Unfair Trade Practices covered by Article V
of the Basic Code, except Section A, and for all purposes of this
Supplementary Code the following described acts shall constitute
unfair practices. Ainy member of the Industry who shall directly
or indirectly through any officer, employee, agent or representative
use or employ any of such unfair practices shall be guilty of a
violation of this Supplementatry Code.,
~ RULE 1. Pool Cars. Any products of the Industry shipped in
mixed or pool cars shall be! invoiced at the price for the quantity
RUL 2. False Records. Withholding from, or inserting in any
invoice a false record, wholly or in part, of the transaction repre-
sented on the face thereof.
RULE 3. Defamation. To defamne or disparage a competitor di-
rectly or indir~ectly, by words or acts which untruthfully impugn
his business integrity, his ability to keep his contracts, hiis credit
standing, or the quality of his products.
RtULE 4. Piracy of Trade M~arks and Trade Names. To imitate or
simulate the trade mark, trade name, package, wrapper, or label of
a compIet.itor's product to such a degree, as to deceive or have a
tendency to deceive customers.
RULE 5. Commercial Bribery. No member of the Industry shall
giveC, permit to be given, or dirrct~ly offer ton give, anything of value
for the purpose of influencing or rewarding the action of any em-
ployece, agent. or representative of another in relation to the business
of t~he employer of such employee, the principal of such agent or
the represented party, without the knowledge of such employer,
principal or party. Th~is provision shall not be construed to pro-
hibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for
commercials bribery as hereinabove defined.
RULE C,. FRISe M~arking or Branding. The false marking or
brandling of any product of the Industry which has the tendency to
mislead or deceive customers or prospective customers, whether as
to the grade, quality, quantity substance character, nature, origin,
size, 6inish or preparation ofany prod uct of the Industry, or
RULE 7. Misrepresentation or False or M~isleadinga Advertising.
The making or causing or knowingly permitting to be made or pub-
lished any false, materially inaccurate, or deceptive statement, by
way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industr, or the credit terms,
values, policies, or services of aymember of te I~ndustry, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
RULE 8. Threstts of Litigation. The making, publishing or cir-
cularizing of threats of suits for infringement of patents or trade
marks or of any other legal proceedings not in good faith and withn-
out bringing such suits or proceedings within a reasonable timne,
with the tendency or effect of halrassing competitors or intim~idanting
RULE 9. ~Espionage of Competitors. Securing con fid~enlt il i nfor-
mation about a competitor's business by a false or misleadling state-
ment or representation, by a false impersonation of one in authority,
by ribery, or by any other unfair methord or any~ other secret means
were the effect may be to hzindler or stiflt!e petition.
RULE 10. ICnterference with Another's Contracts. No member of
the Industry shall knowingly attempt to induce thne breach of any
written contract between a competitor and his emaployee or customer
or sourc of st~upply;nor shall ny such member knowingly interfere
wit orobsruc te pesrfiormnanee of such contractual duties or
RUtLE 11. Selling on Clonsignment. N~o member of the Industry
shall ship goods on consignmu~ent exce-pt under circumstances to be
defined by the Supplementary Code Authority, where peculiar cir-
cumstances of this industry require the practice.
RULE 12. Lump Sum Bids and Contracts. To submiit a bid or
bids for two (2) or more commodities, one of which~ is a product of
thle Industry in which the unrit price of each conunlodity is not clearlyl
stated. Accepting orders, or contracts :for sale at a lump sum price
where the contract does not specify thne exact quantity, quality, and
unit price of the product purchased.
RULE 13. faInufacturing OH TOll BRSis. Members of the Indtustry
shall not manufacture or fabricate any products of thie Industry
fromt rawf materials owned by a jobber, dealer, or the agent, repr~esen-
tative, or corporate subsidiary or affiliate of such 'jobber, orr dealer,
or from raw materials the purchase of which is made upon the credit
of or the payment for which is guaranteed of such jobbe~r or dealer,
or the agent, representative, or corporate su~bsidiary or affiliate of
such jobber, or dealer. This provision shall nlot prohibit the opera-
tions of any jobbers, or dealers owning and operating their own
plants or factories. Exceptions to this Rule may be granted, for
cause, by the Supplemental Code Authority subject to approval by
RULE 14. Contradts. Kinkring Rn9 sale Or contraOL Of sRIS Of aIny
product under description which does not fully describe such product
in terms customarily used in the Inndustry.
Cancelling,r in whole or in part, or permitting the cancellation in
whole or in part of any contract of sale of any product, except for
a fair conisideration, or paying or allowing to any purchaser in con-
nection writh the sale of any: product any rebate, commission, credit,
discount, adjustment or sinular concession other than as specified in
the contract of sale and~/or available to all customers of the same
RULE 15. Standardization of Products. The Supplementaryr Code
Authority shall make studies for the establishment of classifications,
dimensional standards and quality for the products of this Industry,
in cooperation with some Federal Government Agency, preferably
th~e Bureau of Standards of the United States Department of Com-
mnerce, with the view to their recommendation for adoption by this
Industry, su~ch standards when approved by a majority vote of this
Industry, shall become the standards of this Industry within ninety
(90) days andl thereafter th~e Industry shall follow such standards.
Farilulre to follow such standards set up by the Supplementary Code
Authority, so appr"oved by the members of this Industry, will be an
unfair method of competition and a violation of this Supplementary
Provided, however, that exceptions from such standards may be
applied for by formally petitioning the Sup~plemnentary Code Au-
thority, whlose decision must be rendered within sixty (60) days and
if favorable to the petitioners will become final when ratified by a
majority vote of this Industry, but if unfavorable an appeal may be
taken to the Administrator. In no case shall such standards be-
come bindingf on the members of this Indulstry unless ratified by a
majority vote thereof.
Ruzz 16. Definition of Customers. The Supplement~ary Code
Authiorityg shall, w~ith the approval of the Administrator, set up
definitions for the various classes of customers within this Industry.
Wh~Ven so approved byv the Administ.rator, quotations, prices, dis-
counts, credit terms, allowances or other conditions of sale shall be
made on the basis of such definitions and deviations therefrom shall
constitute unfair methods of competition and a violation of this
RU LEiet 17. Stadard Forms of Contract. The Supplementary Code
Authority shall devise standard forms of contracts which shall be-
comne effective sixty (60) days after th~e approval of the Adminis-
trator and after such approval any deviation therefrom shall con-
stitute an unfair trade practice and a violation of this Supplemen-
ARTICLE I? 1NOPOLIES
No provlision of this Supplementary Code shall be so applied as to
permit monopolies or monopolistic practices, or to eliminate, oppress
or discrimiInate against small enterprises.
SECTION 1. Thlis Supplementary Code and all the provisions
thereof are expressly made subject to the right of the President, in
accordance with provisions of subsection (b) of Section 10 of the
Act, from time to time to cancel or modify any order, approval,
license, rule or regulation issued under said Act.
SECTION 2. This Supplementary Codle, except as to provisions re-
quired by the Act, may be modified or amended onl the basis of
experience or changes in circumstances,, such modtifications or amendl-
ments to be based upon~ application by the Supplemecntury Code
Authority or other representativ-e group within the IndcustryS to the
Administrator and such Notice and Hen~ilrin sh hl pcf n
to become effective andc be: a par~t of this Supplementary Code on
approval1 by the Pr~esidlent, and. or the Admllinistr~ator.
ARTICLE XI--PRICE IN~CHEASES
Whereas the policy of the Act to increase real purchncing power
will be madle more difficult of conlsummatint~ if prices of goods and
service increase as rapidly as wagces. it is recognized that price
increases except suchi as mary be re~quiredl to meet indtividlual costs
should be delayed, but w~hen mande. such inclrases should, so far as
possible, be limiited to actual addcitionlal incr~eases in the seller's costs.
ARTICLE XII--EFFECT'IVE A~TE A\ND DURATION
This Supplementar~y Cod-e shlall become et~ectivee at 12:01 o'clockr
A.M~. Eastern Standar~d Timne on the tenth d~ay after it is approved
by the President.
Approvred Code No,. S-1-Suplementcl NVo. 31.
Registry No. 1128i-08.
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