NATIONAL~ RECOVERY ADMINISTRATIONS
CODElt OF FAIR C OM1PET ITIONli
~MANU FACTURING INDUSTRY
Fo~r leby t he Siuperintedent of Docluments. Washington, D.C. Price 5 ceals
Approved Code No. 84--Supplement No. 48
Registry No. 1122-21
AS APPROVED ON AUGUST 31, 1934
WE W OUR PAR1
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Approved Code No. 84-Supplement No. 48
SUPPL~EMENTARYS CODEi O;F FAPI[R COMPETITION
PERFORATIING~ REMANUFACTURINGG INDUtSTRY
AsI~ Approved on Atugust 31, 1934
APPROVI~a SUPPLEMENTAURY CODE OF FAIR GOMrPETITION FOR TKB
PERFORATING niA N UJFACTURING INDUSTRY
AB DIVISION OF THE FABRICATED MIETAL PRODUCTS MALNUFaCTUTRING AND
METAL FINISHINGJ AND MVETAL COATING1 INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the N~ationalt Industrial
Recovery Act, approved Jutne 16, 1933, and in. accordance with the
provisions of Section 1 of Article V/I of the Basic Code for the Fab-
ricated MZetal Produtslr Manu~factulringr a~nd MeTtal Ffinishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary C~ode of ]Fair Competition for the 3Perforating
MTa nurfacturig I ndusTrr~ltry, and hearing having been. duly held thereon;
and the annexed report on said Supplementary Code, containing
findings with respect thereto, having been made and directed to the
NiOW~ THEREFORE, on behalf of the ]Presid-ent of thre United
States, 1, Hugh S. Johnson, Adlministrator for Industrial Recover~y,
pursuant to authority vested in mae by Executive Orders of theL
President, including Executive Order No. 6543-A, dated Decemiber
80, 1933, and otherwise; do hereby inco porate by reference said
annexed report and do find that said Sup ementary Code complies
in. all respects with th pertinent provilslons and w~ill promote the
policy and purposes of said T~itle of said Act; and do hereby order
that said Supplementary Code of Fair Competition be and it is
hereby approved; provided, however, that the provisions of Rule
12, Article VIII be and they hereby are stayed :pending my further
Thou; S. JToINuon,
Administrator for Indulstrial~ Recovery
Bar~oxu W'. MURRAY
D32ivision A. ministrator.
Aug at 31, 1934.
nng68*-1--181-1 3-A (1)
REPORT TPO TH[E PRESIDENT
The W~hite HEiouse.
SmR:This is a report on. the Supplementary Code of Fair Competi-
tion for the Perforating Mi~anufacturing Industry, a division of the
Fabricated MRetal Products Manufacturing and Metal Finishing and
Metal Coating Industry, the hearing having been conducted thereon
in Washington, D.C., April 9, 1934, in accordance with the provisions
of Title I of the National Industrial Recovery Act.
The Perforating Manufacturing Industry, being truly representa-
tive of this division of the Fabricated Metal Products Manufactur-
ing and Metal Finishing and Metal Coating Industry, has elected to
avail itself of the option of submitting a Supplementary Code of
Fair Competition, as provided for ini Section 1 of Acrticle VrI of the
Basic Code, for the Fabricated Metal Products Manufacturing and
Metal Finishing and Mdetal Coating Industry, approved by you on
the second day of November, 1933.
p,3S17nd OF THIE CODE
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the
Article III. This Ilndustry is a division of the Fabjricated` Metal
Products Manufacturing: and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approve
November 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a Supplementary Code A~uthority consisting
of five (5) members to be elected by the members of the Industry at
a, meeting called by the Temporary Supplementary Code Authority,
and gives the Administrator the authority to appomnt one additional
member without vote alnd provides machinery for obtaining statistics
and the administration of the Supplementary Co~de.
Article V provides for the formulation of an accounting system
andl methods of cost finding and/or estimating.
Article VIT provides Sagairnst, selling* below allowable cost as de-
termined by a uniform method of costing.
Article VII provides for methods of setting up anld revising price
Article VIII sets forth. the unfair tradeprcceoftiSule
mentary Code which has been especial eigned~ toosetufair
competition in this division of the Industry.
Article IX provides against monopolies and monopolistic practices.
Article X contains the mandatory provisions contained in. Sec-
tion 10 (b) and also provides for thle submission of proposed amend-
mnents to the Sullpp~lementary Code.
Article XI recognizes that price increases be limiited to actuial
addlitionnal increases in seller's costs.
Article XII states thet effective dlate of this Supplemencltary Coude.
The. Assiistant. Deputy Admninistrator in his final report to me on
~sid Seup~plemenltarly Code havin~g found as heremn set forth andi on
the basis olf all the pr~oceed~cings in. this matter:
I find that:
(a) Said Sulpplemnen n try Code is well designed to prlomlote the
policies and purposes of Title I of the Nlt~ionall Indusltriall Recovl\ery
Act, includcing removal of obstructions to the free flow of interstate
anld foreign corlnunrc e wFhich tend to diminish thne amoun)llt th~t1ereof
and will provide for the general welfare by promoting the orga~niza-
tion of indusryUfS for the pu~r~rpses of cooplerat~ive action among the
trade groups, by inducing 'and maint aininga united action of labor and
management under adequate gov\er~nmental sanctions and super-
vision, by eliminating unfair co:mpetitive practices, by pIromroting the
fullest possible utilization of the present productive capacity of
industries, by avoiding unldue restriction of p~roductionl (except as
may be templorarily requiredd, by increasing the consulmption of
industrial and agricultural products through increasing purchla ing
power, by reducing and relieving unemployli ment, byV imnproving
standanrds of labor, and b~y otherwise rehabilitatinga inlust~ry.
(b) Said Ind-ust~ry normally employs not more than. 50,000 em-
ployees and is not classified by me as a major industry.
(c) The Supplementary Cod~e as approved complies In all. respects
with the pertinent provisions of said TLitle of said Act, including
without limlitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof and that the
applicant association is an industrial association truly representative
of the aforesaid Industry; anld that said association Imposes no
inequitable restrictions on admission to mlembership therein.
(d) T'he Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will. not elim-
inate or oppress small enlterprises and wTill not operate to dtiscrimilnate
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be: heard prior to approval of said
F~or these reasons, therefore, I have appro~vedl this Supplementary
Itvanr S. JouusBon,
Ad min istrator.
ArccusT 31, 1C334.
SUPPL;EMENTARYT CODE OF" FAIR COMPETITION FiOR
THE PERFORAT'ING MAQNUCFAcCTURING IND-USTRY
A1 DIVISION OF THE FABRICATED METAL PRIODUCTS MANUFACCTURING AND
METAL FINISHIING AND METAL COATING; INDUSTRY
To effectuat~e the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Perforating M/lanufac-
turing Industry, pursuant to Article VI of the B&asic Code of Fiair
Competition for the ]Fabricated M~etal Products M~anufacturing and
Metal F'inishing and Metal Coatinlg Industry, approved by the
President of the United States on the second day of Novemzber, 1933,
and the provisions of this Supplementary Code shall be the standards
of fair competition for such Industry and shall be binding upon
every member thereof.
ARTICLE II- EIZFFINITIONSI
SECTION 1. The term Industry as used herein means the manu-
facture for sale of' perforated sheet, strip and/or plate materials.
This does not include products made from perforated materials as
defined in the Code of ~Fa'ir Competition for th~e W7arm Air Register
Industry as approved on June 28, 1934.
SECTION 2. The terms President ", "Act and Administrator "
as used herein shall mean. respectively the President of the U~nited
States, Title I of th~e National Industrial Rtecovery Act, and the
Administrator for Industrial Recovery.
SECTION 3. The ~term Member of the Industry as used herein
includes but without limitation any individual, partnership, associa-
tion, corporation or other form of enterprise engaged in the Indus-
try, either as an employer or on his own or its own b~ehalf.
SECTION 4. The term Basic Code as used herein is defined to
mean the Basic Code of Fair Competition for the Fabricate~d M~etal
Products Manufacturinrg and Metal Finishing and Metal C~oatingJ
Industry as approved by the President of the Unhited States on the
second day of N'ove~mber, 1933.
SECTION 5. The term Supplementary Code Authority as used
herein means the agency which is to administer this Supple~mentary
Code as hereinafter provided.
SECTION 6. The term "Association as used herein is defined to
mean the Perforated 1Metal Manufacturers Association or its suc-
SECTION 7. The term Federation as used herein is defined to
mean the Fabricated 1Metal Products Federation or its successor.
SECTION 8. The term Emrployee as used herein includes any and
all persons engaged in the Industry, however compensated.
SECTIOS 9. The terml Emplloy.er '" as used' here~in inciludcs ;anyone
by wsho such employee is c~ompensalted or emnploy3ed..
AR.TIC`LE CII`I-EulrLOYME~IINTr PROV~IUION
This Indulst ry is a divisionl of th~e Fab1~rieted~ Mertal Prodne~!-ts Mlan-
ufacturing and Mectal Finishinga andl M\eta~l Coating IndusltryS and
without limnitatio~n thec wage, hour, and labor provisions~ in Article
III of its Bascic Codle as alpproved" by the Pr~esidnt. Novembercr 2, 1C133,
includlinga Section 10of said A rt icle III by which, the provisions of sub-
section (1) (2) and (3) of Section 7 (h a)l oTitle I of the Alct rer
muade condiitions of thsCode, are speedillyicrtrt. een
and made a part hereof as thle wagec, hour a~nd labor provisions~ of
this Supplemientary Cod-e.
ARTICL IV-C;SZ.TONexzro meT Anx)Ims~jI~rTurIox
Sacaow 1. During the period not to exceed] sixty (60) dlays fol-
lowing the effective dlate of this Supplementary Code, the Supple-
mentary Code Committee of the Industry shall constitute a tempo-
rary Supplemlentasry Code Authority until thne Supplemnentary Code
Authority is elected. There shall be constituted within thne sixty-
day period a Supplementary Code AluthorityS consisting of five mem-~
bers to be elected by the members of the Industry, at a .meeting
called by the Temporary Suppleme~ntary Code Authority.Th
members of the Supplemenltary Code Atuth~ority first elected shall
serve until the following annual meeting of the Association, and
thereafter members of the Supplementary Code Aluthlority shall be
elected by th4c members of th Industry at a meeting of the members
of the Industry to be~ held at the tie and place of each annual meet-
ing of the Association, to serve until the following annual meeting.
Fifteen (15j) days' advance notice of all meetings to be held here-
under shall be sent by Regist~ered Mail to all members of the Indus-
try whos names may bel ascertained by diligent search, and who
may vote either in person or by proxy. The members of the Supple-
mentary Code Autority shall be elected in thefollow\ing manner:
(a) One member who shall -be a member of the Association by a
majority vote of all members of t~he Industry present in person or;
bly proxy, each member to have one vote.
(b) One member who shall be a memnber of the IndustryS and j
Inon-member of the Association by a majority vote of all the members
o~f the Industry who are not members of the Association, present in!
person or by proxy, each member .to have one vote.
(c) Three (3) members who shall be members of the Associat~ion,t
by a majority vote of all votes cast by all members of the Associa-i
tron, present in person or by proxy, w-eighted on the basis of,
1. One (1) vote for each member of the Association, and '
2. Two (2) additional votes for the first ten (10) or fraction-
thereof of shop employees of erach member of the Asociration, and
one (1) additional vote for each ten (10) or fraction thereof of all
additional employees, averaged over the previous calendar year ars
reported to the Suplplemnentary Code Auithorityg, provided, however
that no one member of the Association may cast more than 2570 oi
the toal number of votes cast.
If the members of the Industry who are non-members of the ~Asso-
ciation fail to elect a member of the Supplementary Code Authority
as provided in subsection (b) of this Section, then a member of the
Industry who is a non-member of the Association shall be elected by
pro a majority vote of all members of the Industry then present in
peron r y proxy, each member to haveonvt.
A vacancy in the membership of the Supplementary Code Au-
thority shall be filled by majority vote of the remaining members of
the Supplementary Code Authority, provided, however, that the
member of the Supplementary Code Authority who is chosen to fill
such vacancy shall be elected from the class of membership in which
the vacancy has occurred. In addition thereto the Administrator
may appoint one mzember who shall serve without vote on the Sup-
plementary Code Authority and without expense to the Industry.
The member so appointed by the Administrator, together ~with. the
Administrator, shall receive notice of and may sit at all meetings
of the Supplementary Code Authority.
SECTION 2. Each Trade Association directly or indirectly partici-
pating in the selection or activities of the Supplementary Code Au-
thority shall (1) impose no inequitable restrictions on admission to
membership, and (2) submit to the Administrator true copies of its
Articles of Association, By-Laws, regulations, and any amnendlments
when made thereto, together with such other information as to mem-
bership, organization, and activities as the Admninistrator may de~em
necessary to effctuate the purposes of the Act.
SIECTION 3. In order that the Supplementary Code Authority
shall, at all times, be truly representative of the Industry and in
other respects comply with the provisions of the Act, the Admin-
thratristrator may prescribe suchHearings as he may deem proper; and
theeaferifhe shall find that the Supplementary Code Authorityr
is not truly representative or does not in other respects comply with
the provisions of the Act, may require an appropriate modification
of the Supplementary Code A~uthority.
SECTION 4. It being found necessary in order to support the atd-
ministration of this Supplementary Code and to maintain the stand-
ards of fair competition established hereundier 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 SupplementaryV Code.
(b) To submit to the Admmnistrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized Budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
support such budget shall be contributed by members of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable con-
tribution as above set forth by all members of the Industry, and to
that end, if necessary, to institute legal proceedings therefor in its
Each member of the Industry shall pay hiis or its equitable con-
tribut~ion to the expenses of thze maintenance of the Supplementary
Code Authority, determined as hereinabove provided, andl subject to
rules and regulations pertaining thereto issued by the Administrator.
Only members of the Industry complying with the Sulpplementary
Code alnd contrib~utiner to the. expenses of its admllinistrat~ion as here-
-inabove provided, unless duly exempted fromt making such contri-
butions, shal be entitled to participate in th~e selection of mem~ber~s
of the Supplementary Code Authority or to receive th benefits of
any of its voluntary activities or to make use of any emblem or
insignia of the National Recovery Administi-ation.
The Supplementary Code Authority shall neither incur nor pay
any" obligations substantially in excess of the amount thereof as estl-
mated in, its approved budget, and shall in no event exceed the total
Amount contained in the approved budget, except upon approval of
the Administr~ator; and no subsequent budget shatll contain any de-
fiieny item for expenditures in. excess of prior budget estima~~tes
except those wFhich the Administrator shall have so approved.
SECTION 5, ~Nothing contained in this Supplemuentary Code shall
constitute the members of the Supplementary Code Au~thority part-
ners for any purpose. Nor shall any member of the Supplementary
Code Authority be liable in any mnanner to anyone for any act of
any other member, officer, agent, or employee of the Supplemejntary
Code Authority, nor shall any member of the Supplemnt~aryT Code
Authority, exercising reasonable diligence inr thie conduct of his
duties hereunder, beliable to anyone for any action or omission to
act under this Supplementary Code, except for his owfn wilful mal-
feasance or nonfeasance.
SECTION 6. The Supplementary Code Authority shgall i lso fro
time to time furnish to the, Basic Code ALuthority, dsgae nsi
Basic Code, such information as may be required to be furnished
under the term of said Basic Code.
SEC)TION i. Subject to such rules an~d regullations as maly be issued
by the Administrator, the Supplementary Code Authority shall have
the following powers and duties, in addn'tion to those. authorized by
other provisions of this Supplementary Code.
(a) To insure the execution of the provisions o-f this Supple-
mentary Code and to provide for the compliance of the Industry
with the provisios of th1e Act.
(b) To adopt b-laws and rules and reg ulations for its prmtoeue
(c) To obtai from members of theIdutyucifomtn
and reports as are reqluiredt for th~e administration of th~e Supple-
mentary Code. In addition to information required to be submitted
to he elementary Code Authorityr, members of the Industry
information as the Adlministrator may deeml necessary for the pulr-
poses recited in Section 8 (a) of the Act to such Flied~eral and State
agencies as be may designate; provided that nothing in this Supple-
mentary Code shall relieve any member of the Industry of any
existin$ obligations to furnish reports to any Governmnent agency.
No individual report shall be disclosed to any other member of the
Industry or any other party except to such othr Governmental
agencies as may be directed by the Administrator.
(d) To use such Trade Associations and other Agencies as it
deems proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve thle Supp~lementary
Code Authlority of its duties or responsibilities under this Supple-
mentar~y Code and that such Tradle A~ssociations and Agencies shall
at all times be subject to and comply with the provisions hereof.
(e) To mlake recommendations to the Administrator for the co-
ordination of the administration of this Suplemetlltnta 'ry Code with
such other Codes, if any, as may be related to or affect the members
of the Industry.
(f ) To azppoint a Trade Practice Commlittee which shall meet with
tlhe Trade Practice Committees appointed under such other codes as
may be related to the Industry for the purpose of formulating fair
trade practices to govern the relationships between employers under
this Supplementary Code and under such other codes to the end that
suchn fair trade practices may be proposed to the Administrator
as aelulme-ntlnns to this Supplementary Code and such other codes.
(g) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Industry in their relations with each
other or with other Industries; measures for industrial planning
and stabilization of employment; and including modifications of
this Supplementary Code which shall become effective as part hereof
upon approval by the Administrator after such notice and hearing
as he may specify.
SECTION 8. If the Administrator believes that any action of the
Supplementary Code Authority or any agency thereof is unfair or
unjust or contrary to the public interest, the ALldministrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action. Further action by such
Supplementary Code Authority or Agency regarding the matter
complained of may be taken if approved by the Administrator but
shall not be taken if disapproved by the Adm~inistrator within
thirty days of notice to him of intention to proceed with such
SECTION 9. rpO the extent permitted by the Act and subject to such
rules and regulations as the Administrator may prescribe, the Sup-
plementary Code Authority shall have power to investigate any
complaint filed with it regarding an alleged violation of the Supple-
ART'IcIan V--CosT FINrDIN"G
The Supplementary Code Authority shall cause to be formulated
methods of cost finding and accounting capable of use by all mem-
bers of the Industry, and shall submit such methods to thne ~Ad-
ministrator for review. If approved by the Administrator, full
information. 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. Nroth-
ing herein contained shall be construed to permit the Supplementary
Code Authority, any agent thereof, or any member of the Industry
to suggest uniform additions, percentagets or differentials or other
uniform items of cost which are designed to bring about arbitrary
uniformity of costs or prices.
ARIrrrou VI--COTS AND PaCes CorrxwoO
SECTIONJ 1. The standards of fair competition for the lIndustry withr
reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the Industry or of
any other Industry or the customers of either may at any time com-
plain to the Supplementary Code Authority that any filed ~price conl-
stitutes unfair competition as destructive price. cutting, imperiling
small enterprise or tending towardi monopoly or the impairment of
code wages and working condlitions. The Supplementary~ Code Au-
thority shall within five (5) days afford an ~opportunity to the. mm-
ber filing the price to answer such complaint and shall within four-
teen (14) days make a, ruling or adjustment thereon. If such ruling
is not concurred in by either prty~ to the complaint, all papers shall
be referred- to the Research and Planning Division of N.R.A. which
Shall render a report and recomumendation thereon to the Admlin-
(b) When no declared emergency exists as to any given. product,
there is to be no fixed minimum basis for prices. It Is intended that
sound cost estimating methods should be used and that considera-
tion should be given to costs in the determination of pricing policies.
(c) WF~hen an emergency exists as to any gien product~, sale
below the stated minimum price of such product, in violation of
Section 2 hereof, is forbidden.
SECTION 2. Emergency Provisions.--(a) ]If the Adlministrator,
after investigation 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 conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fzed product within the Industry for a limited period is necessary to
mitigate the conditions constituting such emerncadtoeftut
the purposes of the Act, t~he S upplementar gCnoade Athorifety aye
cause an impartial agency to investigate costs and to recommend to
the Administrator a determination of the stated minimum price ofe
the product affected by the emergency and thereupon the Admin-
istrator may proceed to determine such stated minimum price.
(b) When the Administrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the National Industrial
Recovery Act, he shall publish such price. Thereafter, during such
stated period, no member of the Industry shall sell such specified
products at a net realized price below said stated minimum price
and any such sale shall be deemed destructive price cutting. From
time to time, the Supplementary Code Authority may recommend re-
view of reconsideration or the Administrator may cause any deter-
minations hereunder to be reviewed or reconsidered and appropriate
ARTICLE 'VII-OPENY PRICE
SECTION 1. Within sixty (6()) days after the effective date of this
Supplementary Code, the Supplementary Code Authority shall
designate what products of the Industry are to be sold on a price
list -basis. Each member of the Industry shall file with a conlfi-
dential and disinterested agent of the Supplementary Code Author-
ity, or, if none, then with such an agent designated by the Admin-
istrator, identified lists of all of ~his prices, discounts, rebates,
allows~ances, and all other terms or conditions of sale, hereinafter
in this ~Article referred to as "' price terms," which. lists shall com-
pletely and accurately conform to and represent the individual pric-
mng practices of said member. Such lists shall contain the price
terms for all such standard products of the Industry as are sold or
offered for sale by said member and for such non-standard products
of said member as shall be designated by the Supplementary Code
Authority. Said price terms shall in the first instance be filed within
eighlty (830) days after the date of approval of this provision. Price
terms and revised price trmns shall become effective immediately
upon receipt thereof by said agent. Immediately upon receipt
thereof, said agent shall by telegraph or other equally prompt means
notify- said member of the time of such receipt. Such lists and re-
visions, together with the effective time thereof, shall upon receipt
be immediately and simultaneously distributed to all members of the
Industry and to all of their customers who have applied therefore
and have offered to defray the cost actually incurred by the Sup-
plementary Code Authority in the preparation and distribution
thereof and be available for inspection by any of their customers
at the office of such agent. Said lists or revisions or any part thereof
shlall not bet made available to any person. until released to all
members of the Industry and their customers, as aforesaid; pro-
v7ided, that prices filed mn the first instance shall not be released
until the expiration of the aforesaid eighty (80) day1 period after
the approval of this Supp~lementary Code. The Supplementary
Code Authority shall maintain a permanent file of all price terms
filed as herein provided, and shall not destroy any part of such
records except upon written consent of the Adlmimstrator. Upon
request the Supplementary Code Authority- shall furnishr to the
Administrator or any duly designated agent of the Admninistrator
copis ofanysuch hists or revisions of price terms. The Supple-
coin soentary Codye A~uthority may, from time to time, designate addi-
tional andl other products of the Industry to be sold on. a price list
basis and, beginning ten (10) days after the members of the I~ndustry
shall have been notified` of such designation and thereafter, the
provisions of this Article shall apple to the sale of such products.
SECTION 2. -When any member ofthe I[ndustry has filed any
revision, such member shall not file a higher price within forty-eight
SECTI~ON 3. No member of the Industry shall sell or offer to sell
any products/services of the Industry, for which price terms have
been filed pursuant to the provisions of this Article, except in
accordance wvith such price terms..
SECTION 4. No member of the I~ndustry shall enter into any agree-
mnent, 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 in~fluence inconsistent with the maintenance of the free
and open market which it is the purpose of this Article to create.
AnvTicia VIII-Unri Tan PRACTICES
In addition to th U~nfair Trade Practices covered by ~Acrticle V
(excepting Section A) of the B~asic Code as though herein repeated
andi set forth at length, and for all purposes of this Supplementary
Code, t~he following described acts shall constitute unfair practices.
Any member of the Industry who shall directly or indirectly through
any officer, employee, a~lgent, or representative uise or employ any
of such unfair practices shall be guilty of a violation of this Supple-
RaE 1. Tkreats of Li'tigation.-No member ofE the Industry shall
publish or circulate unjust~ifed or unwarranted threats of legal
proceedings which tend to have the effect of harassing competitors
or intimidating their customers.
Rurs 2. Extension of Cred~it Trmls.--No member of the Industry
shall g ive extended time beyond the cash dliscount; net payment. pe-
riod1 established in filed price lists, or exprecsseid in sp~ecitic quota-
tions. This shall not prevent any member of the Industry from
allowing extended time to any purchaser at the rate of 69~ per
RamL 3. SelZing on Comsignme~nt.--No member of the Industry
shall ship goods on consignment except under circum~stances to be
defined by the Supplementary Code AButhority and approved by the
Administrator, where peculiar circumstances of the Industry re-
quire the practice.
RamE 4. Indmo~Cing Breah of Eltisting C~ontr~ac~ts.--No member of
the Industry shall wilfu~lly induce or attempt to induce the breach
of existing contracts between competitors and their cu~stomers by
any false or d~eceptive means, or interfere with or obstruct the per-
formance of any such contractual duties or services by: any such
means, with the purpose and effect of hampering, injuring or emr-
barrassingi competitors in their business.
Rmz 5. C~oercele.--No .member of the Indulstry shall require that
the purchase or lease of anyV goods be a prerequisite to the purchase
or lease of any ote goodls
Ram~ 6. Gimmyil of PrizeS, Prepmiwumas or G~ifts.-No member of the
Industry shall offer or ~give prizes, premiums or gifts in connection
with the sale of products, or as an inducement ther~eto, by any
scheme which involves lottery, nusrepresentaition or fraud.
RULE 7. Espio~na~ge of Compn~etitore.- Nuo member of the 'I~ndustry
shall secure confidential information concerning thre business of a,
competitor by a false or misleading sta te men t or mis re prese n station,
by a false impersonation of one in authority, by bribery, or by any
other unfair method.
R~rIE 8. Guarantees agcdnet Price Chaslges.--No member of th
IZndustry shall make or give, or offer to make or give guarantees
of protection in any form against changes in price beyond a, period
of 30 days, except for such products and under such circumstances
as are defined by the Supplementaryr Code Authority, subject to the
approval of the Administrator.
-RniE 9. Commissiona.--No member of the Industry shall permit
the splitting of commissions or other compensation received by his
employee or agent, with the buyer, for the purpose or with the
efect of influencing a sale.
RIZE 10. Comzb~inat~ion of Satles.--No member of the Industry shall,
for the purpose of influencing a sale, sell or offer to sell any com-
modity other than a product of this Industry in combination with
any product of this Industry at a price which will yield to the seller
less than the total cost to hnim.
NPo member of the Industry shall, for the purpose of influencing
a sale, sell or offer to sell commodities other than products of this
Industry without separately stating the price of such commodities
unless such commodities are inceorporated as an integral part of a
RULE Ij1. ConrafG;E8.-RO member of the Industry shall make any
sale or contract of sale of any product, under any description which~
does not fully and accurately describe such product in terms cus-
tomarily used in the Industry.
RULE 12. Xe8MOS.- NO member of the Industry shall for the pur-
pose of influencing a sale, render to any prospective or actual pur-
chaser of any product any unusual service, except when fair charge
for such service shall be made.'
RULE 13. Secret Rlebartes.--Nro member of the Industry shall
secretly offer or make any payment or allowance of a rebate, refund,
commission, credit, unearned discount or excess allowance, whether
in the form of money or otherwise, nor shall a member of the In-
dustryT secretly offer or extend to any customer any special service
or privilege not exrtended to all customers of the same class, for the
purpose of influencing a sale.
RUzz 14. Individual L~abor Crost.--No member of ~the Industry
who actually performs duties usually performed by an employee en-
gaged in the manufacture and processing of products of the Indus-
try shall fail to charge for such individual labor and shall include
in hnis cost an amount calculated on a basis of at I east the minimum
wage provided for in Article III of the Basic Code.
No provision of this Supplementary Code shall be so applied as to
permit monopolies or monopolistic practices, or to eliminate, oppress
or discriminate against small enterprises.
SECTION 1. This Supplementaryr Code and all the provisions
thereof are expressly made subject to the right of the President, in
accordance with the provision of sub-section (b) of Section 10 of
the Act, from time to time to cancel or modify any~ order, approval,
license, rule or regulation issued under Title I of said Act.
SECTION 2. This Supplementary Code, exceptas to provisions re-
quired by the Act, may be modified on the bssof experience or
changes in circumnsta-nces, such modifications to be based~ upon appli-
cation byT the Supplementary Code Authority to the Administrator
and such NJotice of Hearingf as hne shall specify and to become effec-
tive and be a part of this -Supplementary Code on approval by the
r See paragraph 2 of order approving this Code.
BAnrcLz XI-RICE INCREASES
Whereas the policy of the Act to increase real purchasing powFer
will be made mrore difficult o~f consummation if prices of: goods andi
services mecrease as rapidly as wrages, it is recognized that price
increases except such as may be required to m~eet~ individual costs
should be delayed, but when made, such increases should be, so far
as possible, liie to actual additional increases in thie seller's costs.
ARTICLE XYII EFFECTIVE' A~TE
This Supplementary Code shall become, effective at 12,:01. o'clock
A. M. on th6e tenth day after it is approved by the President.
Approved Code N~o. &Supplement No. 48.
Registry No. 112-2.
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