I'- ~ --- -~~ i
Por sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
ApRpmoved Code No. 84--Supplement No. 15
Registry No. IT22-T-US-
NATIONAL RECOVERY ADMINISTRATION
SUPPLEMEN ~T ARY
COD~E OF FAIR COMPETITION
H-AND ]BAG FRAME
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON AUGUST 1, 1934
WE D)O UR PARf
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.O., and] by district offices of the Bur'eau of Foreign
and D~omestic Commerce.
D)ISTRIECT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmlingham, ABla.: 257 Federal Building.
Boston, 111ass. : 1801 Custombouse.
Buffalo, N.Y.I: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Buite 1706, 201 North wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Buildling.
Detroit, Mrich.: 801 First National Bank Building.
B~Houston, Tex.: Chamber of Commlerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
:i ~Jacklsonville, Fla.: Chiamber of Commerce Building,
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angele~s, Calif.: 1163 South Broa7dway.
Louisville, Kyg.: 408 Federal Building.
Memaphis, Tenn.: 229 F'ederal Building.
MIinneapolis, Minn.: 213 Federal Building.
: New Orleans, La.: Room 225-A, Customhouse.
N~ew York, N.Y.: 734 Customhouse.
Norfolk, Va.: 400 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commuerce Building.
Portland, Oreg.: 215 New Post Offce~ Building.
St. Louis, L~lo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, WVash.: 80~9 Federal Office Building,
Approved Code No. 84---Supplemen~t No. 45
SUPPLEMENTARlY CODE OF FAIR COMPETITION
HIANVD BAG FIRAM]E MIANUFA`C~STURING INDUSTRY
As Approved on August 1, 1934
APPROVING SUPPLEMIENTARY CODE OF ]FAIR COMPETITION FOR TH
~Hav) BL~sG FRAM11E nZANU~FACITURING INDUSTRY
A DIVISION OF THE FABRICATED METAL PRODUCTS MABNUFACTUTRING AND
MIETAL FINISH-ING AND MiETAL CO)ATIN INDUSTRY
An application haviung been duly made pursuant to and in full
compliance with thne provisions of Tfitle I of the NPational Industrial
Recovery Act, approved June 16i, 1933,. anrd in accordance with the
plrovisions of Section 1 of Article -VI of the Basic Code for the F'ab-
ricated 1Me~ctal Products M~anufactuing~ and Mretal Finishing and
M~eta~l Coating Industry, approved November 2, 1933, for approval
of a Supplementaryp Code of F'air Competition for the HElanrd Bag
F~rrame Mnnulfacturingr Indulstrry, and heaRring hatvingr been duly held
thereon; and the annexed report on said Supplementary Code, con-
taining findings with respect thereto, having been made and directed
to the President.:
NOW, TH~EREFORE, on behalf of the P'resident of the United
States, I, H-ugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority rested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543--A, dated December 30,
1933, and othlerwvise; do hereby incorporate by reference said annexed
report and do find that said Supplem~entrary Code complies in all
respects with the pertinent provisions and will promoted the policy
and purposes of said Tiltle of said ~Act; and do hereby order that said
Supplementary Code .of Fair Competition be and it is herebyg
HUGrH S. JOHNSON,
AdFmzinistrator ~for Ind~ustriaol Recovery.
Bar~oN W. MunnaRsY,
A-u gunt _1, 1934~.
77'408* 1044--5- 834 1
REPORT;1C TO` THEIE PRESIDENT
T~he Wh~Iite Hjowse.
Smn: T~his is a report on1 thes Supplementary Code of Fair Com-
petition for the Hand Bagr Framec Ma~lnufcturiing Industry, a Divi-
sion of the Fabricated M~etal Prodlucts nIlanufacturiwrr and M~etanl
Finishing and M~tal Coating Industry, the hearing playing been
conducted thereon in WVCashington, D.C:.Ap~ril 27, 1934, in accord-
ance. with the provisions of Title I of th~e Na2tional Inldustrial
The Hand Bag F'ram Manufactnuring Indlustry, being trly~l rep-
resentative of this Division of thne 'ab~ricated M~et~al Pr~oducts Alanu-
facturing and Mat~al Finishing and M~etal Coating Industry, has
elected to avail itself of the option of submitting a Supplementanry
Code of Fair Comlpetition, as provided for in Section 1 of Article
IVI, of the Basic Code, for the Fabricated MRetal Products M~anufac-
turing and MSe~tal Finishing and M~et~al Coating Industr~y, approved
by you on the second day of November, 1933.
nisuUE OF THE COD)E
Article I states the purpose of the SupIplemlentary Code..
Article II, accurately defines specific terms employed in the Sup-
Article ITI:I: his Industry is a Division of the Fliabricated Mletal
Products Ma~nufacturing and M~etal F~inishin~g and M~etal Coating
Industry and the labor provisions of its B3asic Code as approved
November 2, 1933, are the labor provisions of this Sulpplementary
Article IV establishes a Suppilementary- Cod'e -Authority consist-
ing of six (6) members, to be elected by thle members of the Industry
at a meeting called by the Temlporary Supplemenitary Code Au-
thority, and gives the Admninistrator the aulthority t~co appoint~ one
additional member w~ithout. vote and provides machinery for obtain-
ing statistics and the administration of the Supplement~ary Code.
Article V provides for the formulation of an accounting system
and methods of cost finding anl/'or estimating. :
Article VI provides for the filing of prices with a confidential
and disinterested agent of thne Supplemlentary Code Authority or,
if none, then with such agent designated by t~he Admninistrator.
MecPhanism is also pnrov~ided for filing of price revisions.
Article VII sets forth the standards of fair competition for the
Industry with reference to pricing practices and forbids wilfully
Article V1III sets forth the unfair trade practices of this Supple-
mentary Code which have been especially designed to offset unfair
competition in this Divrision of the Industry.
Arrticle IXC provides for registration of designs.
Ac~rticle X provides against monopolies or monopolistic practices.
Article XI contains the mandatory provisions contained in. Sec-
tion 10 (b) of thne AcLt and also provides for submission of proposed
amrendlments to the Suplalementary Code.
Ar~tile XII recognizes t~hat pries increases be limited to actual
additional increases in the seller s costs.
Article XIII gives the effective date and duration of this Supple-
The Aissistant Deputy Administrator in his final report to m~e on
said Supp~lementufiry~ Code having found as herein set forth and on
the basis of all tlhe proceedings in this matter:
I find that:
(a) Sa id Supplelmentary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Allct, including remova~l of obstructions to thne free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organizat-
tion of industry for the purpose of cooperative action amnongf the
trade groups, by inducing and maintaining united action of labcsr
and management under adequate governmental sanctions and super-
vision, by eliminating unfair -competitive practices., by promoting the
fullest, possible utilization of the present productive capacity of in-
dustries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the consumption of indus-
trial and agricultural products through mecrea~smg purchasing power,
by reducing and relieving unemployment, by improving standards
oflabor, and by otherwise rehabilitating industry.
(b) Said Inldustryr normatllyr employs not more than 5i0,000 em-
ployees; and is not classified by me as a major industry.
(c) The Supplementary Code as approved complies mn all respects
with the pertilnenlt provisions of said Tlitle of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof ; and that the
association is an industrial association truly representative of the
afor~esaid Indusatry; and that said association imposes no inequitable
restrictions on adminssio n to mnembership th~erein.
(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not elim-
ina~te or oppress small enterprises and will not operate to discrimi-
nate against them.
(f) Those engaged in other steps of the economic process have
not been dleprived of the right to be heard prior to approval of said
Su pplementary Code.
For these reasons, therefore, I have approved this Supplementary
HUGH S. 3-OHNSON,
AUGUrST 1, 1934.
SUIPP~LEMENTARY COD>E OF` FAIR COMPETITION FOR
TH HAN BAG FRAME MANUFACTURING INDUSTRY
A DIVISION OF THE PABRICATE METAL PRODUCTS MABNUPACTURING AND
MIETAL FINISHIING AND METLG COATING INDUSITRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, this C~ode is established as a Supplemlentary Code of
]Fair Competition for the H~and Bago Frame MIanufa-cturing Indus-
tryr, pursuant. to Article VI of the Basic Code of Fair Competition
for the Fabricated M~etal Products: Manufac~turing and M~et~al Fin-
ishing and Mietal Cojating Indlustry, approved by the President on
the second day of November, 1933, and the provisions of this Sup-
plementary Code shall bethie standards of ~fair competition of such
Industry and shall be binding upon every member of the Industry.
SECTION 1. The term Hand Bag Frame M~anufacturing Indlus-
try "', hereinafter r~eferredl to as thre "L Industry "', is defined to mean
the manufacture and assembly for sale of frames made of metal to
be used for ladies', misses' and children's hand bagas, men's, women's
and children's poc ~etbookis and purses.
SECTION 2. The terms "L Presidlent '", "~Act and "LAdministrator "
as used herein shall mean, respiectively the President of the United
States, Title I,0 f the N1at~ional Industrial Recovery Act, and the
Administrator for Industrial Recovery.
SECTIONT 3. The term "' member of the Industry as used herein
includes but without limitation, any individuaal, partnership, asso-
c~iation, corporation or other' form~ of enterprise engaged _in the In-
dustryI, either as an employer or onr his or its own behlf.
SEC~TION 4. The teri~n Baisic Code as used herein is defined to
meatn the Basic Code 'of Fair Competition for; the Fabricated MZetal
Products; Mianufacturing and Mlvetal Finishing and Mietal Coating
Industry as approved by the President on the second day of No-
SECTION 5j. The term "empoe ais used herein includes any and
all persons engaged in the Indstr,, however compensated, except
a member of the IndustrTr.
SECTION 6j. The ter employer as used herein includes anyone
by whom any such employee is compensated or employed.
SECTION 7. The term Supplementary Clode Authority as used
hiereinI means the agency which is to administer this Supplementary
Code a~s hereinafter provided.
SECTION The term "'Association as used herein is defined to
mean the Hand Bag Frame Mlanufacturers Association, Inc., or its
SECTION 9. The term "C Supplementary Code Committee "' as use~d
herein is defined to mean the Comnmit~tee selected by the Hand Bag
Framle Manufacturers Ass~ociation, Inc. to present, make such
changes as necessary, and assent to anrd signl this Supplementarly
Code on behalf of the Association.
SECTION 10. Thre term Federation as ulsed herein is defined to
mean the Fabricated Metal Products Federation, or its successor.
SECTION 11. The term Confidential Ageent as used herein is
defined to mean the impartial agency designated by thie Supp.le-
mlenta ry Code Authority.
AnnO'ILE II[I-EM"PLOYTMENT' PROVISIONS
This Industry is a division of the Fabricated Metal Prod'ucts
Manufacturing and Metal Finishing and 1Metal Coating Indlustry
and wsithiout limitation the wage, hour and labor provisions in Article
III of its Basic Code as approved by t~he Ptresident, Novemnber 2,
1933, including Section 1 of said Article III, by wChich 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 provisions
of this Supplementaryr Code.
ARTICLE IV--ORGABNIZATION, AC~DMINISTRATIO AND DUTIES
SECTION 1. Duringr the period not to exceed sixty (60) days follow-
ing the effective dea~te of this Supplementary Code, the Supple-
mentary Code Committee shall constitute a, Temlporary Supplement-
aryT Code Authority until the Supplementar~y Code Authlority is
There shall be constituted within thie sixty (60) days period a Sup
elementary Code Author~ity consisting of six (6) members, to b
elected by the members of the Industry, at a meeting called by the
Temporary Supplementary Code Authority, upon ten (10) days'
notice sent by registered mlail to all members- of the Industr~y whose
names may be ascertained after diligent search, who may vote either
in person or by proxy or by mail. The members of the Supple-
mentaryr Code Authority first elected shall serve until the following
annual meeting of the Association in January, and thereafter mem-
,bers of the Supplementary Code Authority shall be elected by the
members of the IndustryF at a meeting of the Industry to be held
at the time and place of each annual meeting of the Association to
serve until the following annual .meeting.
The members of the Supplement~ry Code Authority shall be
elected in the followinglf manner:
(a) Two (2) members who shall be members of the Association
and w~ho are also members of the Industry by a majority of all votes
cast b~y the members of the Association votig in person or by proxy,
or by mail, each memblter to have onet vote.
(b6) Three (3) members, who shall be members of the Association
ndwho are also members of the Industry, by afftyS-one percent
(51a/0) of all votes cast by the members of the Association who are
also members of the Industry, voting in person or by proxy, or by
mail, each member to have one vote and one acjddiio vote for each
$10,000 annual sales of the previous calendar year reported to the
Supplementary Code Authority. Provided, however, that no one
member may cast more than twenty-five percent (25%0) of the total
number of votes cast.
(c) One (1) member who is not a member of the Association, wrho
is a member of the Industry may "be elected by a majority of all
votes cast by those members of the Industry who are not members
of the Assoc~iation, vFotinga in person or by proxy or by mail, each
mlember to havce one vPote.
A vacancy in the membership of the Supp~lementary Code mnay be
filled by a mlajority vote of the remain ing members of the Sup-
plemnentary Code Authority. I~f the vacancy be that of a non-
meber of the ~Association, it must be ~filled by the election of a
In addition thereto the Administrator may appoint a member of
t~he Supplemlent~ary Code Authority who shall be without vote and
shall serve for such term as he shall specify without expense to
.this Industry, unless the Supplemlentary Codej Author~ity agrees to
pay such expense. The representative who may be appointed by the
Administrator shall be given reasonable notice of anid may sit at all
meetings of the Supplementary. Code Authority.
SECTIION 2. Each trade association. directly or indirectly partici-
pating in the selection or activities of the Supplementary Code Au-
thorit~y shall: (1) impose no inequitable restrictions on membership,
and (2) shall submit to the Administrator true copies of its Articles
of Association, By-Laws, Regulations, and any amendments when
made thereto, together ~with such other information as to member-
ship, organization, and activities as the Admninistrator may deem
necessary to effectuate the purposes of- the Act.
SacTIoN 3. In order that the Suqplementary Code Authority shall,
ait all- times, be truly representative of the Indust~ry and i~n other
respects comply fith the provisions of the. Act, the Administrator
ma~y prescribe such hearings as he may deem proper; and, there-
after, if he shall find that the Supplementary Code Authority is not
truly representative or does not m other respects comply with the
provisions of the ActL, may require the removal of any or all of the
members and may make appropriate modification or modifications
of method of selection of the Supplementary Code Authority.
SECnON 4. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by thbe Supple-
menltary Code Auth~ority to the .Administrator within six months
after the effective date of t~he Supplementary Code.
SECION 5;. It being found necessary in order to support the ad-
ministration of thiis Supplementary Code and to maintain the stand-
ards of fair competition established hereunder and to effectuate the
policy of the Act, the Supplementary Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Supplementary Code.
(b) To submit to the Admimistrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
(1) an itemlized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon w~hichl thie funds necessary
to support such budget shall be contributed by members of the
~I(.1tc) Aft~er such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable
cont-ribution as above set forth by all members of the Industry, and
to tha~t end, if necessary, to institute legal proceedings there~for in
its ownrl name.
Each mnembler of the Industry shall pay his or its equitable con-i
tribution to the expenses of the maintenance of the Supplementary
Code Aulthority, determ~ined as hereinabove provided, and subject to
rules and regulations pel~nrtinin t~he~reton issued3 by the Administrator.
Only memberss of the I~ndustry complying with the Supplenrientary
Code and con~tributingr to the expenses of its administration. as hrere-
inabove. provided, unless duly exvempted from making such contribu-
tions, shall be entitled to participate in the selection of members
of the Suppleme~ntary Code Authority or to receive the benefits of
anyI of its voluntary activities or to make use of any emblemn or;
insignia of the National Recovery Administtration.
The Supple~mentary Code Authority shall neither incur nor pay
any obligations in excess of the amount- thereof as estimated in its
approved budget, except upon approval of the Administrator; and
no subsequent b~udg;et shall contain any deficiency items for expendi-
tures in excess of prior budget estimates except those which thet
Administrator shall have so approved.
SECTION 6. TOthilig contained in this SupplementryCdshl
constitute the members ofT~ the Suplmetay od authority
partners for any purpose. Nor shall anymebrothSupe
mentary Code Authority be liable in anly manner to anyone for any
act of any~ other member, officer, agent or employee of the Supple-
mentary Code Authior~ity, nor shall any member of the Supp~lemen-
tary 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 Supplement~ary Code, except for his own willful
mal feasanc rt or non-.feasa nce.
SECTION 7. The Supplem~entar~y Code Authority shall also from
timle to time furnish to the! Ba~sic Code Au thority, designated in said
Basic Code, such information as may be required to be furnished
under the terms of said Basic Code.
SECTION 8. 'The Supplem~entary Code Authority shall have all the
powers and duties which sh-all be necessary or proper to enable~ it to
fully administer this Supplemlentary CodSe and to effectua~te its pur-
pose. WIithout limitation to the foregoin~r or ang other powers or
duties provided for in this Supplementaryb~ode, t~e Supplementary
Code Aut~hority shall have the following further powers and duties:
(a) To adopt By--Laws and Rules and Regulations for, and keep
records ofp, its procedure and the administration of this Supplemnent-
(~b) To obtain from members of the ~Industry such information
and reports as are required for the- administration of the Supple-
mentary Code, which information and reports shatll be submitted by-
mlembers to such administrative and/or government agencies as the
Administrator miay designate; provided that nothing in this Supple-
mentary Code: shall relieve any member of the Industry of any exist-
ing obligations t~o furnish reports to any govePrnment- agency No
individual reports shall be disclosedl to any other member of t~he
Industry\ or any other pa~rty except to suchl governmental agencies
as mnay be~ directed byr the Aldministrator.
(c) To use suchi trade associations and other agencies as it deems
proper for the carrying out of a.nyv of its net~ivities prov-ided for
herein, pr~ovidedl that. nothing herein shall relieve t.he Supp~lementary
Code Authorityv of its duties or responsibilities under this Supple-
mentary Code and that such trade arssciat~ions and agencies shall at
all times be subject. to and com~rply with the provisions hereof.
(d) To make recommendations to t~he Admninistrator for t.he croor-
dination of the adlministration of this Supplementary Code with
such o~therts codles, if any, as may be related t.o or affect thle members
of thle Industry.
(e) To recommends to thle Administrator any action or measures
deemed advisable, including further fair trade practice provisions to
govern members of the Industry in their relations writh each other or
writh other Industries; measures for industrial planning, and stabili-
zation of employment; and including modifications of this Supple-
mentary Code which shall become effective as part hereof upon ap-
proval by the Administrator after such notice and hearing as he may
(f) To appoint a trade practice committee which shall meet with
t~he trade practice committees appointed under such other codes as
mlay. be related to the Induustry for the purpose of formulating fair
practices to govern the relationships between production and distri-
bution employers under this Supplementary Code, and under such
others to t~he end that such fair trade practices may be proposed to
the Administ~rator as amendments to this Supplemlentary Code and
such other codes.
(g) To consider the subjects of contracts in existence on the effect-
ive date of this Supplementary Code, and makre recommendations to
members of this Industry and the Ad~ministrator as to the disposi-
tion _of such contracts.
SECTION 9. If the Administrator believes that a~ny action of the
Supplementary Code Authority or any agency thereof is unfair or
unjust or contrary to the public interest, the Administrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of such a~ction. Further action by such
Supplementary Code Authority or agency regarding the matter com-
plained of may be taken if approved by the Administrator, but shall
not be taken if disapproved by the Administrator within thirty (30).
days of notice to him of intention to proceed with such action.
SECTION 10. To the extent permitted by the Act and subject to such
rules and regulations as the Administrator may prescribe, any or
all information furnished to the Supplementary Code Authority b
any member of this Industry pursuant to the provisions of this Sup-
plementory Code shall be subject to verification by an impartial
agency agreed upon by the Supplementary Code Authority and the
member of the Industry in question, and, failing such agreement such
impartial agency shall be selected by the Administrator, which im-
partial agency maya checkr so much of the pertinent book, accounts
a~nd records of such members of the I~ndustry as may be required to
verify the accuracy of the information so furnished.
Antcia V-CosT FamwI mEN ACCOUNTING
The Supplementary Code Authority shall cause to be formulated
methods of cost finding and accounting ca puble of use by all memb-
berss of the Industry, and shall submit such methods to the Adminis-
trator for re~view. If approved bly thce iAdministrator, full informa-
t ion concerning such methods shall be made available to all members
of the Industry. Thereafter, each. member of the Industry shall
utilize such methods to the extent found practicable. NJothing herein
contained.,shall be construed to permit the Supplemenltar~y Code
Authority, any agent thereof, or any member ofthe Industry to
suggest unziform additions, percentages or differentials or other uni-
form items of cost which are designed to bring about arbitrary
uniformity of costs or prices.
ARTICia VI--OPEN PRICE. FILING
SECTION 1. Each member of the Industry shall file with. a confi-
dential and disinterested agent of the Supplementary Code Author-
ity or, if none, then with such an agent designated by the Admlinis-
trator, identified lists of all his prices, discounts, rebates, allowances,
and all other terms or conditions of sale, hereinafter in this Acrticle
referred to as price terms ", which lists shall completely and ac-
curately conform. to and represent the individual pricing practices
of said member. Such lists shall contain the price terms for all such
standard prdcso h nutyas are sold or offered for sale by
said nriembr dcof the ]nuty h Industry n for such non-standard products
of said meber olf the Industry as shall be designated by the Sup-
plementar~y Code Authority.l Sa id price term shall ini the first in-
stance be filed within ten (10) days after the date of approval of this
Supplementary Code. Price terms and revised price terms shall be-
come effective- imzmediately upon receipt thereof by said agent. Im-
mlediately upon receipt thereof, said agent shall by telegSraph or
other equally prompt means notify said member of the Industry of
the time of such receipt. Such lists: and revisions, together with the
effective time thereof, shall upon receipt be immediately and simul-
taneously distributed to all members of the Industry and to all of
their customers ~who have applied therefore sad have offered to de-
fray the cost actually incurred by the Supplementary Code Author-
ity in the preparation and distribution thereof and be available for
inspection bty~ any of their customers at the office of said agent. Said
lists or revisions or any part thereof shall not be made available to
any person until released to all members of the Industry and their
customers, as aforesaid; provided, that price failed in the first instance
shall not be released until the expiration of the aforesaid ten (10)
days period after the approval of this Supplementary Code.Th
Supplementary Code. Authorityv shall maintain a permanent file of
all price terms filed .as, herein provided, and shall not destroy an v
part of such records` except upon written consent of the Adminis-
traor. T1Jpon request the Supplementary Clode Authority shall fur-
nish to the Admlinistrator or any dulyr designated agent of the Ad-
miinistrator copies of any such lists or revisions of price terms.
SECTION 2. Whlen anyr member of thle Indlustryv has filed any r~e-
vision, such, member of the Indust~yv shall not 81ie a higher price
within forty-eight (48) h~ours.
SEC'TION 3. No memllber of the Industry shall sell or offer to sell
'any products/services of the Industry, for which price terms have
been filed pursuant, to t~he provisions of this A~rticle, except in
accordannce writhf such price ter~ms.
SECTION 4. Each member of this Industry shall furnish the said
Agnt for distribution with suchi number of copies of his price list
as the SuppDlemnentary Code Authority may prescribe. I
SECTION 5. No member of the Indlustry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause~or attempt to cause any member of the Indus-
try to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with thle maintenance of the free
and open market which it is the purpose of this Article to create.
ARTICLE 711I-COSTS AND PRICE CUI'PINGI
SEaoTIN 1. Th-e standards of fair competition for the Industry
with reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of com-
petition and is forbidden. Any member of the Industry or of any
other Industry or thne customers of either may at any time complain
to the Supplementary Code Aut~horitY that any filed price consti-
tutes unfair competition as destructive price cuttingr imnpriling
small enterprises or tending toward monopoly or the impairment
of code wages and working conditions. The Supplementary Code
Authority1 shall within five (5) days afford an opportunity to the
membr fiing the price to answer such complaint and shall within
fourteen (1i4) daysn make a ruiling or adjustment thereon. If such
rul ing is not concurred in by either party to the complaint,, all papers
shall be referred to the Research and Planning Division of NRA
which shall render a report and recommendation thereon to the
(b) When no declared emergency exists as to any given products,
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) W~hen an emergency exists as t~o any given products, sale below
the stated minimum price of such product., in violation of Section 2
hereof, is forbidden.
SECTION 2. Emergency Pro-v~isions.--(a) If the Administrator,
after invest~igation shall at any time find both (1) that, an emergency
has arisen within the Industry adversely affecting small enterprises
or wages or labor conditions;, or tending toward monopoly or other
acute condlitions which tend to defeat thle purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fled product within the Indlustry for a limited period is necessary to
mitigate the conditions constituting such emergency and to effe~ctuate
the~ purposes of t~he A~ct, the Supplementary Code Authrority may
cause an imlport~ial agency to investigate costs and to recommend to
t~he .Admlinistlrator a determination of the stated minimum price of
the product. affectedl by the emergency and thereupon the Adminis-
tr~ator miay"b, Iefproceed to determine such stated minimum. price.
() Wenthe. Administrator shall have determined such. stated
minimum price for a specified product for a stated period, which
price shall be r~easonably~ calculated to mitigate the conditions of
such emergency and to effectuate the purposes of the National Indius-
trial Rec~overy~ Act, he shall publish such price. Thereafter, during
such stated per~iodl, no member of the Industry shall sell such specified
products art a net realiz~d. price below said stated mlinimuml price
and any~ such sale shall be deemed destructive price cutting. From
time to t~ime, the rSupplelmenntar Code Aluthority may~S recommend
.revriew or reconsideratioln or the Adminlistrator mayT cause any deter-
minat~ions hereunder to be reviewed or re-conlsidered and appropriate
ArrxclE VIII--Unran TRADE PRACTICES
In addition to the Unfair Trade Practices covered by Article V
of the Basic CodSe, except Sections A, B, E, F' and G thereof, as
though herein repeated and set forth at length and for all purposes
of this Supplementary Code the following dhesibedusr act shall cn
stitute unfair practices;. Any memberofteIdtrwhshl
directly or indirectly through any officer, employee, agent or repre-
sentative use or emp~loy any of such unfair trade practices shall be
guilty of a violation of this Supplementary Code.
RUL~E i. NO member of the Industry shall publish advertising
(whether printed, radio, display or of anly other nature) which is
misleading or inaccurate in any material particular, nor shall any
member in any way misrepresent any goods (:including but without
limitation its use, trademark, grade quality, quantity, origin, size,
substance, cha ract~er, nature, finish, material, content or preparation)
or credit terms, values, policies, services, or the nature or form of
the business coniducted.
RTJLE 2. NO membller of the Industry shall use advertising: or
selling methods or credit terms which tend to deceive or mislead the
customlers or prospective customers.
RULE 3. NO member of the Industry shatll knowinglyQ withhold
from or insert in any quotation or mvolce anly statement that makes
3t inaccurate mn anmy material particular.
RULE 4. NO member of the Industry shall brand or mark or pack
any gaoods inl any manner which is intended to or does deceive or
mislead purchasers with respect to the brand, rd, quality,
quantity1, origin, size, substance, character, nature, fnhmaterial,
content or preparation of such. goods.
RULE: 5. No member of the Industry shall publish or circulate
unjustified or unwarranted threats of legal proceedings which tend
to or have the effect of harassing competitors or intimidating their
RITLE 6. PrO member of the Industry shall secretly offer or make
any payment or allowance of a rebate, refund, commission, credit,"
unearned discount or exceus allowance, whether in t~he form o
moneyr or ot~henrise, nor shall a member of the Industry secretly
offer or extend to any customer any special service or privilege not
extended to all customers of the same class, for the purpose of in-
fluencing a sale.
RULE 7. NO member of. the Indust~ry shall ship goods on consign-
ment except. under methods t~o be defined by t~he Supplementary Code
.Authorit~y, such methods to be approved by the Admuinistrator where
peculiar circumlstances of the Industryv require the practice.
RITn 8. No member of thie Industry shall wFilfully induce or
attempt to induce! the breach of existing contracts between c~ompeti-
tors and their customers by any false or deceptive means, or inter-
fere with or obstruct the performance of any such contractual duties
or services by any such, means, with the purpose and effect of ham-
permng, mnjurmng or emb~arrassmg~ competitors in their business.
RULE 9. The maximnum credit terms of sale for this Industry shall
be two percent. (29'o) fifteen (15) E.O.M'. Shipments made on or
after the tw~enty-fift.h (25th) of the month may\ be charged as of
the following month. A discount of three percent (396,) mlay be
allowed for payments made on a C.O.D. or R.O.G. basis. Antici-
pation may be aEllowed at the rate of six percent (678j) per annum.
RUraE 10. No member of the Industry shall accept for credit the
cancellation or return of merchandise shipped in full conformity to
the terms and conditions of thie contract pursuant to which it was
sold, except for defects in material or wrorkmanship.
RULa 11., No .member of the Industry shall give, permit to be
gilven, or directly offer to grive, anything of value for th~e purpose of
influencing or rewarding the action of any employee, agent or repre-
sentative of another in relation to the business of the employer of
such employee, the principal of such agent or the represented party
without the knowledge of such employer, principal or party. This
provision shall not be construed to prohib it free and general distri-
bution of articles commonly used for advertising except so far as
such articles are actually used for commercial briberyr as hereinabove
ARTIcu:E IX--REGISTRBTON OF DESIGNS8
SEC~TION 1. Design piracy is hereby declared to be an unfair
method of competition. The term "L design as used herein, signifies
designs artistic or ornamental and not functional or mechanical.
No member of the Industry shall imitate or copy, or cause to be imi-
tated or copied, any design original in its application to any product
of the Indust~ry, without the consent. of t~he owner thereof, if:
(a) A drawinF, photograph or model of saidl design has been regis-
tered with a disinterested and impartial agency to be designated by
the Supplementary Code Authority with the approval of the Admin-
istrator. In registering such design, the registrant shall indicate
clearly the particular or particulars in which such design is original
in its application to any product of the Industry, shall, in additional
submit a sworn statement in which he certifies that, to the best of his
knowledge and belief, such design is in fact original as aforesaid, and
shall specifyr thie date of conception of such. de~signr. Such disinter-
ested and impartial agency shall accept any design submitted for
registration as aforesaild, and shall issue a certificate of registration
to the registrant.
(b) Said design or said article to which said design is applied
or inr -which sazid~ design is emb~odied bears the mark "L Registered
design or "' Reg. Code Number ", and the date of registration.
Provided, that th-e prohibition herein7 against piracy of any design
shall expire six (6) months from the date of registration thereof.
SECTIO:N 2. A committee consisting of three (3) members agreed
upon by7 the Supl'eme~ntary Code Authority and the parties in in-
ter~est shall be set up to conciliate differences occasioned by conflicts
ini design on' priority olf rights under register~ed designs. Flailing
such agreementnt the controversy may be submitted to arbitration in
accor~dance: with the Rules of the American Arbitration Associa-
tion at the option of the parties to the controversy or either of them,
or byT direction of the comnmittee.- After all possible effort has
been exerted to amicably settle such differences, the committee shall
submit to the Adminmistration in writing a statement setting forth
cthe facts pertaining thereto, with recommendations as to the desired
action to settle such differences.
SECTION. 3. Nl~othing contained in this Article IX shall be con-
strued to limit the protection afforded to designers or manufacturers
in respect of designs under existing law.,
No provision of this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to chminate,
oppress or discriminate against small enterprises.
SECTION 1. A4s provided bly Section 10 (b) of the Act, the Presi-
dent may from time to time cancel or modify anty order, approval,
license, rule, or regulation issued under Title I of the Act.
SECTION 2. This Supplementary Code, except as to provisions re-
quiredt by the Act, may be modified or amended on the basis of
experience or changes in circumstances, such modifications or amend-
ments to be based upon application by the Supplementary Code
Authlorit~y or other representative group within the Industry to the
Administrator and suchn Notice and Hearing as he shall specify and
to become effective and be a part of this Supplementaryr Code on
approval by the Administrator.
ARTICLE XLII--Paxcn INCR~F8EASE
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages it is recognized that price
increases except such as may be required to meet individual costs
should be delayed, and when made, such :increases should, so far as
possible, be Ilimited to actual additional increases in the seller's costs.
UNIVERSITY OF FLORIDA
IllllillllllllllllllIllllilll illll illll i lI lll||llII
14. 3 1262 08855 7417
AnncLE XIII--EFFEC'IVE DATE AND DT'RATION
This Supplementary Code shall become effective at 12:01 o'clockc
A.111., Eastern Standanrd Time, on the tenth dlay after it is approved
by the President and shall continue in effect until June 16, 1935, or
the earliest date prior th~ereto on which the President shall, by
proclamation, or the Congress shiall, by joint resolution, declare
that the emlerg7ency recognized by Section I of Title I[ of the Na-
tional Industrial Recovery Act, has ended.
Approved Code N'o. 84---upplement No. 45.
Registry No. 11223-1--04