Supplementary code of fair competition for the snap fastener manufacturing industry (a division of the fabricated metal ...


Material Information

Supplementary code of fair competition for the snap fastener manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on April 6, 1934
Portion of title:
Snap fastener manufacturing industry
Physical Description:
12 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Snaps (Fasteners) -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1122-18."
General Note:
"Approved Code No. 84--Supplement No. 16."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952390
oclc - 63655255
System ID:

Full Text

Dec ~~ UM.I.DEPT.


I 'I
Far sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents

Approved Code No. 84--Supplement No. 16

Registry No. 1122--18






(A Division of the Fabricated M~etal Products
Manufacturing and Mletal Finishing
and Mletal Coating Industry)



This publication is folr salle by the Superin~tend~ent of Dl.ueumen~ts, G~overn-
ment Printing Office, Wanshingoton, D.C., and by district offices of the Bureau
of Foreign and Domestic Commerce.
Atlanta, Ga.: 5041 Po'st Office Buildling.
Birmingham. Ala.: 257i Federal Buildilng.
Boston, M~ass.: 1801 Custombouse.
Buffalo. N.Y.: Chamber of Commerce Buiilding.
Char~leston. S.C.: Chamber of Commerce B~uilding.
Chicago, Ill.: Suite 1706. 201 North W~ells Str~eet.
Cleveland, Ohio: Chamiber of Comimerce.
D~allas, Tex.: Chamber of Commerce Building.
1)etrcrir, lic~h.: 801 Fir'st Naticlnal Banuk Buib~ling.
Houston, Tex.: Chamber of Commerce Buildling.
Indianapolis. Ind.; Chamber of Comlmer'ce Building.
Jacksourille, Fla.: Chamber of Comlmerce Building.
K'ansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Br~oadway.
L~ouisville, Kiy.: 408S Federal Buildling.
Memphis, Tenn.: 229 Federal Euildingr.
Minneaprolis, MIinn.: 213 Federal Building.
New Orleans. La.: Room 225-A. Custombouse.
New York, N.Y. : 7i31 Custombouse.
Norfolk, V'a.: 4106 East Plume Street.
Philadielplhia, Pu.:J" 42Commiercial Trust Building.
Pittsburgh, Pa1.: Chamber of Commerce Building.
Portland, Oregr.: 215 Nuew Post Office Building.
St. Louis, M~o.: 506 Olive Street.
San Franc~isco, Ca~lif.: 310) Custombouse.
Senittle, Wash.: SO9 Federal Office Building.

Approved Code No. 84--Supplement No. 16



As Approved on April 6, 1934



An_1 application having been duly made pur~suant to and in full
compliance with the provisions of Tritle I of the National Industrial
Recov~er~y Act, approved June 16, 1935, and in acricrdnce with the
provisions of Section I of Article VI of the Basic Code for the Fabri-
catedl MPetal Products Mlanufactulring~ and ~Metal Finishing and
Metal Contingr Industry, appr~oved November 2, 1933, for approval of
a SupplementuryS Code of F'air Comlpetition for the Snap F~as~tener
MannuL f8f cturi ng Industry, and. hlearing harvingf been duly held thereon;
and th-e annexed report on said Supplemlentar~y Gode, containing
findings with respect thereto, having been made! and dilrectedl to the
NOW~, THEREF'ORE, on behalf of the President of the United
States, IT, H~ugh. S. Johnnson, Adm~inistrator for Industrial Recovery,
pursuant to authority vested inl mle by Executive Orders of the Presi-
dent, including Executive Order ~No. 6543-A, dated December 30,
1933, andl oth~erw~ise; do hereby incorporate by~ reference said an-
nexedl rep~or~t and do find that said Supplementary Code complies in
arll respects with fthe pertinent provisions and wFcill promote the policy
andl pul~crpoe of said- Title of said AcLt; and do hereby order that said
Su'pplemicntar t (codle of ]Fair Compnetition be and it is hiereb;yap
provedl; providedl, however, that the provisions of Article VI
PaLragrap~h (a). in~ofar as they prescribe a, waiting period between
the filing withl the C'ode Author~ity andl the effective date of revised
price lists or' revised terms and conditions of sale be anrd they- are
hereby stayed pendlinga my further Order either within a period of
5156D*----482-38-34 (111

sixty days from the effective date of this Supplementary Code or
after the completion of a study of open price associations now being
conducted by the National Recovecry Admninistratioin.
AdmNinistratot r for Inidlstr~ial Recov~ery.
Acpproval Recommen~cllded
A. R, r. Guar,
Divaisionz Ad/lrininstrAdor~.
WnmarrowTO D.C.,


The Wht72ite H2~ouse.
SmR: This is a report on the Suppliemelntary Code of Fair Comnpe-
t~ition for the Snap Fastener Ma~nulfacturin g Industry, a divisionl of
the Fabricated Metal Products Mannufactul~nrin and Me~tal Finishing
and Metal Coating Indlustr~y, the shearing~ having been conducted
thereon in Washingaton, D.C. Fe~bruar~y 16, 1934, in ac~corda~nce~ with
the provisions of Title I of the Nsational Industrial Recovery Act..
The SCnap> Fastener Manfne~1furtlling~ InduIIstry, being truly repre-
sentative of this division of the Fiabrilented Metal Products Ma~nulfac-
turing and Metal Finishing and Mettal Coating Industry, has elected
to avail itself of thre option, of submitting a Supp~lemlenrtary Codte of
Fair Competition, as provided for in Section. I of Article VI. of the
basic Code, for th~e Fabricated >fetatl Products Mannducturi~ng and
MbZetal Finishing and Mletal Coating Indlustr~y app~rveed by you on
the second day of N~ovember,, 1933.
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in. the Supple-
mentary Code.
Article III. This Industry is a division of the Fabricated Mectal
Products Mannufa cturingl~ and Mletal Fiinishinga and M4etal Coating
Industry and the labor provisions of its Basic Code, as approved.
November 2, 1933, are telabor provisions of this Sulpplementary
_Article I1V establishes a Supplemnentury Code Authority consisting~
of fivPe (5) members to be elected by the members of the Industry at
a meetncalled by the Temporary Supplementary Code Authority
and gives the Administrautor the authority to appoint one adlditioinal
m~emlber without vote and provides machinery for obtaining statisti(si
andl thle administatratio of the Supplemlentarly Code.
Article Y' prov-ides for an accounting system and methods of cost
finding and, ~or estimanting.
Article! VI pr~ovides for determinling the lowest. reasonable cost of
thle products of this Indugtry..
Article V'II provides for methods of setting up and revising price
lists, and for investigation of price lists and terms of sale.
Article V'III sets forth the unfair trade practices of this Supple-
mlentar~y Code wh~ichn has been especially designed to offset unfair
competition in this division of the Industry.

Article IX provides against monopolies and monopolistic practices.
Article X contains; the mnand~tory pr~ovisions contained in Section
10 (b) and also provides fo~r the sutbmisjsion of pr~oposedl amendments
to the ~Supp~lemieiintary Code.
At~rtile XcI: recogrnizes t~hat. pricer ;ilncrase beP IlmtedI to actual
addc-itiolnal ilcr~ease in1 the seller's costs.
Artile XIfI states the effective date of this Sullppelemetntar Code.
The DepurtyS Aldmninistrator in hlis final report to me onl said
LSuplemPI~entaR1y Code having found as herein set forth and on the
basis of all thle prIoceedings in this matter:
I. find thnat:
(a) Said Sup'plem'entary Code is w~ell dlesigned to promote the
policries andc purlposes of Tlitle I of the National Indlustrial Recovery
Act, inc:luingir~r removal of obstructions to the frece flow~ of interstate
and foreign comlnmerce which tend to dliminiish thle amount thereof
and wvill provide for the general welfare by1 promoting the organiza-
tion of industry for the purposes of cooperative action among the
trade groups, by inducingr and maintaining united action of labor
and mannagemient under adequate governmental sanctions and super-
viswnr, by eliminating unfair competitive practices, by promiotian the
fullest p~ossible utilization of the present. proxluctive capacity onf in-
dustries, by- avoiding undue restriction of production (except as may
be te~mpranrily requlred),~ by increasingr the consumiptio n of indus-
tr~ial and agricultural products through~ increasing purchasing power,
of Inbor. and byT oth~erwise reh~abilitating indulstry.
(b) Said Industry Inormally employs not more than 50,000 emn-
plToyees; andc is notf classified by me as n major industry.
(c) The Supplementary ~Codle as aIpprove'd complies in all respects
wtit the pertinent provisions of said Title of saidl Act, including
without lim-itation Suibsection (a) of ~Section 3, Subsection (a) of
Section '7, and Sub~section (b,) of Section 10 thereof ; and that the
applicant group is an industrial group, truly rep~resentative of the
afor~esaid Industry; and that saidl groups~ imposes no inequitable
restrictions on admission to memberships, therein.
(d) The Suppleme~ntnry Ciode is not designed to and will not
permiit mlono-polies or monopolistic practices.
(e) The LSup~plemnentar~y Code is not, designed to andi will not
elimiinate or oppress small enterprises and wvill not. operate to dis-
cl~riinate against thiem.
(f) Those engaged in other steps of the economic process have rmt
be~en deprived of the right to be heardi prior to approval of said
Sup~plemnentu ry Code.
For these reasons, therefore, I have approved this Supplementary
Respect fully,
Hean S. JoHNSON,
APrm, 6, 1934.



To effec~tute thle policies of Title I of th~e National Indusltr~ial Re-
coer~y Act, the following provisions are establishedr as a Su~pple-
menmtary Code of Fair Competition for the Snap Fastiener Mannu-
fact~uring Industry. Pulrrsunnt to A~rticle VI: of the Basic Clode of
1Fair Complletition for the Fabr~icated Jletal Products Manufacturing
and Metatl F~inishing and Metal Coating Industry, approved by the
President of the U~nited States on the second day of N~ovember, 1933
~the provisions of this Supplementa ryJ Code shall be the standard of
fair compet~tiion for and shall be binding upon evlerya member thereof.

S;ECTION 1. The term Snap Fastener M/anufacturing Industry "
mleanrs the manufacture of all snap fasteners other than. those of the
sew-on or slide interlockingn) typle, in whole or in part.
Sl~EcTION 2. The- terms "L President ", "Act and "Administra(tor "'
as usEed herein shall mean respectively the President of the United
States, Title I of the National Indlustrial Recovery A~ct, and the
Adm~ninistrator for Industrial Recovery3 under said Act.
SECTION 3. Tile terml member of the industry as used h-erein, in-
clud~es but without limitation any individual, partnerships, associa-
---- -r----- ---- ---- ---r--`~tin,. conrporation or lther'I form of ente~rprisel engag;1edl in the industry
eithler as an employer or on his or its own~r behalf.
SECTION 4. The term Basic Code as ursedl herein. is defined lto
mlea7n the Basic Clode of Fair ComopetitionI for th~e Fabr~icated~ Metal
Prodluc~ts Mannufacturingr and Mletal Finishing and IMetal Cosrtinga
Ind~ustry as approved b~y the President of the United States on. the?
second dlay of Novemiber 19:33.
SECTION 5. The termn Supplemnentar~y Code Authority as used
herrein mIeans the agency which is to admninister thlis Supplementary
Code as hereinafter providedl.
SECTION 6. The term "LAssiociation is defined to mean the Snap
Fastener Ma~nufactur~ers A-issociation of America or its successor.
SECTION 'i. The term~ L'iederatlOn S caused herein is defjned~ to
miean the Fabricatedl Metal Product~s Fed~eration or its successor.

This Industry is a division of the Fabricatedl Metal Prodiucts Man-
ulfacturing and M~etal Finishing and Metal Coating Industry, and
wit~hoult Ilmitation thle wage, hour and labor provisions in Article III

of its Basic Code as app~rovedr by the President N~ovember 2, 1933, in-
cludingg Section 1 of said Artroflle I[II by which the provisions of
Suib-sections (1), (2), and (3) of Section 7 (a) of Title I of the
Act are mnad'e condlitionis of thins Code, are specifically incorporated
hlerein and mladet a ,ar~t hereof as the wage, hlour andl labor provisions
of this Supplemetntaryl) Code.
SECTIONc 1. During the period not to exceedl sixty~ (60)) days follow-
ing the effective date of this Supp~eleentary Codle, thle Supp~lemlentaryy
Codec Conmmi t tee of thne Industry shall const i tute a temp~ lorarly Su pjple-
mI~enitury Code Authorityr until the Sup~plemlenltar~y Code Ault.hor~ity is
e~lec~ted. There shall be constituted within the isity-day' period a
Supplemrntar~y Code Authority consisting of five mlemblers to be
el~c~tedl by the memlbers~ of the Industry, at a mee~iting called_ by the
Temporary Supp't~lementary3 Code Aiuthority3, uponl t~en danys' notice
sent by register~ed mail to all known members of the Industry, who
may vote either in person or by proxy. The membel~rs of the Sup~ple-
mlentanry Code Authorityv first elected shall serve until the following
annualn meeting of thle A~ssociation, and thereafter, members of the
Supplementary Code Authority shall be eletctle at. eachl annual mleet-
ing of the Aissociation to serve until the following annual meetings.
The mem-tbers of the Supp~lemenltary Code Authority shall be elected
in th~e following manner:
;(a) One member of the Industry byV a majority vlote of all memb-
berss of the Ilndustry p~resenlt in person or by proxy, each member
to have one vote.
(b) One member wriho is not a member of thle Alssociat~ion by
majority vote of all me~mber~s of the Industry who are non-memb~ers
of the Association, present in person or by proxy, each member to
havre one vote.
(c) Three members by fifty-one percent vote of members of the
Association. pr~esenlt in. person or by proxy, weighted on the basis of
ope vote for each member and one additional vote for each $100,0j00.00
of a~nnua~l sales in the previous calendar year r~eported~ to the Teml-
porary, Supp~lemlentur~y Cod~e Authority; providedl, h~ow~ever that no
one member may cast mnore than twenty percent (20%)j of total
numberr of votes cust..
A va;cancyr in the membership of the Supplement.ary Clode Aulthor-
ity may be filled by majorityg vote oof the remnaininga members of the
SuIpplemlentaryp Code Authority. In addition thereto the Admiin-
intrattor may appoint one member without vote and without com-
pe'nsat.ion from the IndustryI to serve on the Supplemnent~ary Clode
Authlority, and together with the Administrator shall receive notice
of and may sit at all mneetingrs of the Supplementar~y Code Authorityv.
SECTION 2. Any; Assc~ciation "directly or indirectly partici~at~ing
in the selection or activities of the Supplem~entary Coe Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submit to the A~dministrator true copies of its Alrticles of A~ssocia-
tion, By-La~ws, Regulations and any amendments w~hen made thereto,
together with such; other information as to membership, organiza-

tion, and activities as the Adminis~trator may deem necessary to
effec~tuate the purp~oses of th Act.
SECTION 3. In or~der that, the Sc~upplemneninry Code Authority shllf,
at all times, be truly repr~esentative of the Industry andl in o~the~r
respects comply with the provisions3 of thie Act, the Adin~ lllist rator
may` prescribe such Hearings as he may deem proper; and, there-
after, if he shall tind. that the Supple~mentur~y Codie Aulthor~ity is not
truly represe~ntativve or does not in other respects comply with theB
p)rovisions of the Ahct, may rqirec-ljlt an approprll~liate modification in.
t he method of selection of the Sjupplementary Code Authority.
S:ctroK 4. A11 iclll membrs of the Industry are subject to the juris-
diction of this Surlpplementar y Code; shall be enltitledt to participate3
in andl share the b~enefits of the Supplementary Code Authlority;
shallI be enltitled~ to vote as provided-l in Section 1 of this Article,
and shall pay their rea~sonlable sharle of the expe~nses of the Admilnis-
tration of this Supplemenrtary Code, such reas~onale~~ share to be
determined by the Suplplementary Code Authority, subject to review
by the Admninistr~ator on the basis of volu~me of business and/or such
other factors as may be deemed equitable. by the S-upplemlcrlntry
Codle Auithority.
SECTION 5. Nothing contained in, this Supp~ellmentary Codet shllnl
constitute the members of thecr S uppl emnenlt ary Code ~Authority
partners for any purpose.
SErCTION 6. The Supplemuentary Code Authority shall also forom
time to time fur~ni-.h to the Basic Code Authority, designated in said
Basic Code, such information as may be required to be furnishedl~l
under terms~i of said Basic Code.
SECTIOJN 7. The Supplementary Code Authority shall have the
followringr further powers and duties under such. rules and regullat ionls
as may be prescribedc~ by the Admninistrator.
(a) To .insure the execution of the provisions of this Supple-.
mentary Code and provide- for the co~mp~lia~nce of the industry w\ithl
the provisions of the Act.
(b) T'o adlopt such by-laws and rules aInd regrulations for its pro-.
cedlure and for the administration of this Supsplementury Codce.
(c) T1Co objtain from members of thec industry such information. andl
reports as arIe r~equil~re for thre administration of the Suipplem~entary
C'ode, which. information~ and r~epor~ts shiall be submliittedi by members
to such administratively\ and/or government agenlciers as the Adminis-
trator may designate; p~rov\ided that nothing in this Supplemenc~trlry
Codel shanll reieveTP anyIT member of the induslt~ry of a~nyr existingr obli-
gations to furnish reports to aIny government agency. No individual
reports shall be disclosed to any other member of the industr-y or any
other party except to such governmental agencies as may b~e d~ir~ected
by the Administrator.
(d) To use such trade associations and other agencies as it deemsu
proper for the carrying out of any of its activities provided for
herein, provided thant nothing herein shall relieve the Sulpp-lemcntalry
Code Authlority of its duties or responsibilities under this Supple-
mnentary Code and that~ such trade associations and neecncies shall at
all times be subject to ndl comply w-ith the provisions h~ereof.

(e) To make recommendations to the Admninistrator for the coor-
dtinaitio~n of the adlminlistration1 of this Supplementory Code with
such other codes, if any, as m~ay be related to the industry.
(f) To secure from members of the industry an equitable and
propol'crtionate payment of the reasonable expenses of maintaining the
Suppllemlentaryl\ C'ode Authority and its nativities.
(g") To coopIerate with thle Admiinistraltor in regulating th~e use
of anly N.R.A. insignia solely by~ those mlemnbers of the indurstry who
have assented~ to, andi are comnplying with, this SCupplemnentary Code.
(h) To recommend to the Admninistrator further fair trade prac-
tice pr1ovisions to govern members of the indlustry inl their. relations
with~ each other or with other trades or indrustr~ies and to r~ecommiendl
to thne Adminillstratorl mneasulres for industrial planning, including
stabiization of emnployment.
(i) If the Admllinistrator shall dletermiine that any action of a
Codelt Authority or agency thereof may be uiinfir or uinjust or con-
trary to the public interest, the Administrator mlay require that
such notion be suspended to afford on opportunity for investigation
of the m~erits of such action and for the consideration by sull Ciode
Authority or agency pendlingr final action which shall not be effective
uInless the Admlinistratorr approves or unless he shall fail to dlisap-
prove after thirty days' notice to him of intentions to proceed with
sucih action inl thle original or' miodifiedl form.

(a) W"ith r~esp~ect to that, portion of his product which is within
the indulstr~y, every member of the industry shall use an accounting
system for dletermnining~ his allowable cost. which conformls to the
~principles of the uniformly method of accounting, and the uniform
method of costing, to be formnulated by the Supplementary Code
Authority and approved by the Admllinistrator with such variiations
therefrom as may be required by the individual conditions affectinga
any memiber of the industry.
() Selling BelowL Reasolnable C'ost.-W\hen thle Supplementary
Code Authority determiines that. an emiergency exists in this industry
and thant the cause thereof is destructive price-cuttings such as to
render ineffective or seriously endanger the maintenance of the pro-
visions of this Supplementary Codle, the Supplementary Code
Authority mlay euse: to be determined the lowest reasonable cost
of the products of this industry, such determination to be subject to
such notice annd hearing as the Administrator may require. The
Admiinistrator may approve, disapprove, or modify the determina-
tionl. Thereafter, during the period of the emergency, it shall be
an unfair trade practice for any member of the 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 products.
When it appears that conditions have changed, the Code Author-
ity, upon it.s owFn initiative or upon the request of any interested
pa rty', shall cause the determination to be reviewed.

~No member of the industry shall sell or exchange any product
of the industry, manufactured by him, at a price, or upon terms
and conditions, which will result in the purchaser paying for the
goods received, less than the allowable cost thereof to the seller,
determined in accordance with a uniformly method of costing de-
scribed in AL-rtiucl V7; provid~ed, however, that any member of the
indurstrys may sell belfowr his costs in order to mleet competitive prices
filed in accordance with the provisions of Article VII of this Sup-
pleme~ntary Code, or to meet. competition from p>roducts of equivat-
lent dlesign, character, qlual ity, or speci fic t ions, ma nu fact ured
outside the United States.
Dropped lines, or seconds, or inventories wlhiich must be converted
into cash to meet emergency needs may be disposed of byT anyV mem-
ber of the industry, at any price and on any terms and conditions,
but only if such member of the industry has filed -with Supplemen-
tary C'ode Authority, not less than two weeks before such disposal,
a statement, in writing, settings forth thre fact of and reasons for,
such proposed disposal.

(a) Eachr member of the industry shall within ten (10) days
after the effective date of this Suppleme~ntary Code, file with the
Supple~mentary Code Authority a net price list, or a prices list a~nd
discount sheet, as the case may be, individually prepared by him,
quoting prices for various grades and finishes to all buyers. Such
.orice lists shall be in such form as the Supplementary Code
Aut.horit y may prescribe showing his current prices, or prices and
dliscolunts, and terms of sale and payment, and the Supp~lementary
Code Authority shall imnmediatelyr publish and send copies thlereofP
to all known mlanufacturrers of such specified pr~oducts. Revised
price lists and/or discount sheets and/or all other conditions of sale
may be filed from. timne to time thereafter with the Supplementury
Code Authority by anyp mnember of the indus~Ltry, to become effective
three. (3) working days after actual receipt by the Supp,-lemnentury9
Code A~uthority. Copies of such revised price lists and/or discount
sheets aind/or all other conditions of sale wiith notlic-e of the? effective
date specified, shall be immediately pulblished andt sent to all mem-
bers of th~e industry, whio are cooperating in this Supplemnent~ary
Code, any of whoma mzay file if he so desires, to become etlect~ive upon
the date wrhen the revised price list and/or discount sheet -and/or
all otherl conditions of sale ~first filed shall go into effect, revisions of
his price lists, and/or dlisc~ount sheets and/or all other conditions of
sale estalblishinga prices or prices and discounts not lower or conrdi-
tions of sale not more favorable than those established in the revised
price lists and/or discount sheets anld/or all other conditions of sale
first fled.l
(b) If and when the Supplementlr~y Code AulthorityS shall deter-
mine that in any branch or subdivilsion of the industry, not now
a See paragraph 2 of order approving this Code.

selling its product on thle basis of price lists, with or without discount
shieets. with fixed terms of sale and payment, the distribution or
markl'letilgr conditions in said bra7nchi or subdivision are the same as,
olr similarly to, the distribution and mnarkteting conditions in a branch
or1 subdivision of the industry where the use of price list.s, with or
w-ithlout discount heezts,, and other fixedl conditions of sale, is well
recognized, and that ind~ustr~y where t-he use of price lists, with or
without discount sheets, w~ith other fixed conditions of sale should
be put. into eAfect in such~ bra-nch or sulbdivisionn; then each manufac-
turer of the pr1oduict or products of ulchh branch or subdivision shall
within twenty (20) day-s after notice of such dletermlination, file with
the Suppellementary Colde AuthorityI net price lists or price lists
and discount shleets, contaniningr all other fixed conditions of sale, and
such price lists and/or discount sheets alnd,'or other fixed conditions
of sale may be thereafter evised in the manner herein above pr~o-
videdl; provided, however, that the Supplementary Code Authority
shall makre no determiination to place an~y product of the industry
(not nlow on a price list basis)j onl a price list basis as provrided
in this paragraph (b) of Article VII unless two-thirds of the mem-
bers who are at that time engagedl in manufacturing such product,
shall affirm~ati~vely consent tha8t such dletermlination be made.
(c) The Supplementary Code Auth~ority shall hlave power, on
its own initiAtive, or on the complaint of any member of the industry,
to investigate any price or th~e terms of sale and payment. for any
product shown in any price list and,'or discount sheet filed with the
Sulpplemnen tary' Code Authority by any member of the Industry.
Each miemb~er of the industry shall furnish the Supplementary
Code Authority for distribution w~ith suchi number of copies of his
price lists und/or discount, sheets as ~Supplementary~ Code Authority
m~ay prescr~ibe, and such price lists shall be avaHilable at cost to any
interested parties.
(d) No memiber of the industryS shall sell, directly or indirectly,
by any means whatsoever, any p~rodulrct of the industry cover~ed b~y
provisions of this Article V'II at a price or at discounts, or on
other conditions of sale different fr~om those provided in his owFn
current net price lists, or price lists and discount sheets.
In addition to the Unfair Trande Practices covered by Article V
of th~e Basic Cod~e for all purposes of this Supplementary Code the
followvinga described acts shall constitute unfair practices. Any miem-
ber of t~he industry wh~lo shanll directly or indirectly through andy
ofier, ployee. agient or representative use or employ any o
such unfair practices shall be guiilty of a violation of this Supple-
mentary Code.
RULE 1. For the purpose of inlfluencinga a sale no member of the
industry shall secretive directly or indirectly offer to make any pay-
ment 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 industry secretly offer or extend
to any customer any special service or privilege not extended to
all customers of the same class.

RUL 2. Nio member of the indiustryT shall ship goods on consign-
ment except ulndeir cir~cum~stan cs to be defined by tlihe Sulpplemlienltury
Codte A uth or~ity, where p~ecul ia r c:i~cumIsta nces of the industry requrlir1e
the practices.
RE.LE 3. NO R~mber~L of the industry shall know-ingly wRithhold
from~ or insert in anly quotation or invoice any ta~temlent that mlak~s
it innac~curalte in any13 malter~ial particular.
RULE 4. No, m1Elllemb of thre industry shall d'isseminate, publish,
or c~ir~culrate any' false or misleading information relativer to anyT
produ~ct or th~e price for any product of anyr memberts l of the industry.
RO LE~ 5. No member of the industry shall disseminate, publish,
or circulate false or mlisjl~adingu information relatives to produlc~ts
inla.nulfactur~ed by him, or encourage or continue? to sell to any dis-
tr~ibultor who persists in sulch2 practice.
RLEc fi. NO mlembir of the industry shall give, permit to be given,
or di~ec~tly offer to give, anything of value for thle prpose'~(t of inl-
flue~ncinrg or rewarding the action of any employee, agent or rep-
repe~ntat.ive of another in relaition to the business of the emplloyer of
suchl emp2loyee, the principal of such. agent or the represented party
without thle knowledge of such employer, principal or party. This
provision shall not be construed to prohibit free anrd general dris-
tribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery a~s herein-
above defined.
RULE ?. NO mlember of the industry shall attempt to induce the
breach of a contract between a competitor and his customer or source
of supply; nor shall any member interfere with or obstruct the
performances of such contra7ctua~l duties or services.
RuzzL 8. No member of the industry shall fail to charge the c~us-
tomner for stamping dies for special stamrpings in any case where the
quantity ordered is below the miimum~ quantity qyuo~ted in printed
price lists.
RULE 9. NJO Irllember of the industry shall fail to fixu minimum
quantities for production runs of specially designedi products with
definitely ~stated additional charges if procduction srhedlesl~~ are so
small as to necessitate shorter runs.
RU~LE 10. No member of the Eidustry shall warrant or gTuarantee
any product of the industry without limnitingg said warrant or guar-
antee specifically to the re~pheementtll of defective merchandise.
RUE~ 11~. No moemb~er of the indlustrly shall accept cancellation of
specially designed orders except upon reimbu~,~ rseme nt for losses
Tes ult ing.
RrLE 12. plO Of the inldustry shall ship in greater q-uanlti-
ties than are inv\oicedl and paid for.
RULE 1:3. ;2NO member of the indusrltry shall replace worn out dies
with new dies unless he shal~ prlcucrre the return of such old dlies.
RrLE 14. SO Illembler' of the industry shall supply full automatic
or semi-nultomaltic attac~hing~ macnhine~s (i.e. eithecr foot or power
drivetn) exc~ept on oultrighlt salet or on the basis of a fixed rentatl
royalty or service c~harge, the terms of such. ag~reee nt to be filed
with the Suppleien~tury Codet Authority. All rental charges for
such machines shall be printed anrd rigidly adther~ed to and shall be

in accordlnnee with n form to be determined byv the Supplementary
Code Aulthority and~ approved by~ the Administrator.
REILE 15. No mnem~er' of the indlustryv shall fail to imnprint on all
oirder foiirms andc- bill h~eads~i definite credit sterns, prices, and trade
d~isc-ounts, or shl~l faiil to Iirigidly' adlhere to andl enforce all such
terms andt co~nditions.
Ruile 10. No mem~llber~ of the~ ind~ustry shall aid or abet any person,
firmi, assoc~iation. or corporation in anny unfair practice establishedc in
this Code.

No prov~isioi n of this SC~upple mentntary Code shall be applied so as
to permit m~onopolies or' monopolistic practices, or to eliminate,
oppess or dliscriminate against small enterprises.

Sec~rroS 1. This Supplemntantry Code anld all t~he provisions there-
of ne~e expesly,~~~~ miade subject to the r~igh~t of the President, in
acc.or~dance with provisions of sulbsectionl (b) of Section 10 of the
Act, firomi time to time to cancel or mnodify any order, approval,
license, ruile or regulation issuedl under said- Act.
SjECTION 2. This Supplemlentary Code, excelpt as to provisions
required by the A~ct, mnay be mlodifiedd on the basis of experience or
changes in cir~cumstancese such modifications to be: based upon appli-
cation by t.he Supp~,Ilementury Code Authority to the Admninistrator
andi suci h Notice and Hearing as he shall specify and to become
effective and~ h~e a par~t of this Supl~plemlellcrntar Codle on approval by
the Presidecnt.

Wlher~ens the p-olicy of thme Act to increase real purchasing power
w~ill be made more difficult of consuimmation if prices of goods and
services increase aS rapidly? as wages, it is recognized that price
increases except such as miay be required to mieet individual costs
shlouldl be dlelay~ed, but wFhen made, such increases should, as far as
possible, be limited to actual additional increases in the seller's costs.

This Supplementary Code shall become effective at. 12:01 o'clock
A.1\l., on the tenth dayi after it is approved by~ the President.
Apprsloved Codet NoI. 84---Supplement No. 16.
Re~gistry No. 1122-18.

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