Supplementary code of fair competition for the leaf spring manufacturing industry (a product group of the original equip...


Material Information

Supplementary code of fair competition for the leaf spring manufacturing industry (a product group of the original equipment and replacement parts divisions of the automotive parts and equipment manufacturing industry) as approved on July 18, 1934
Portion of title:
Leaf spring manufacturing industry
Physical Description:
13 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Automobiles -- Springs and suspension -- United States   ( lcsh )
Automobile industry and trade -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1404-36."
General Note:
"Approved Code No. 105--Supplement No. 3."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950961
oclc - 656835597
System ID:

Full Text

Marb sale Lbyh Superintndent of Decameala, WashingtonD.C. PRice (5 cona~

Approved Code No. IO5--Sapplement No. 8

Registryr No. 1404--30




(A Product Group of the Original Equipment
and the Replacement Parts Divisions of
the Automotive Parts and Equipment
Manufacturing Industry)




This publication is for sale by the Superintendent of Documents, Government
Printing Office, WCashington, ID.O., and by district offices of the Bureau of Foreign
and D~omestic Commerce.

A8tlanta, Ga.: 504 Post O~ffie Building.
Birmingham, Ala.: 257 Federal Building.
Bostonl, Miass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Buildinlg.
Charleston, S.C.: ~Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Cham~ber of Commnerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Comlmerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, M~o.: 1028 Baltimore A8venue.
Los A~ngeles, Calif.: 1163 South Br'oadway.
Louisville, KRy.: 408 Federal Building.
Memphis, T~enn.: 220 Federal Building.
M~inneapolis, Mdinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 34 C~ustomlbouse.
Norfolkr,.Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust B~utlildg.
Pittsburgh, Pa.: Chamber of Commerce l'uildling.
Portland, Oreg.: 215 N~ew Post Offce Buildinlg.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Washt.: 809 Federal Offlee Buuildinlg.

Approved Code No. 10 i-Supplement No. 3



As Approved on July 18, 1934




An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Ciode of Fair
Competition for the Leaf Spring Mlanufacturing Product G~roup of
the Original Eqtuipment and~ the Replacement Parts Divisions of the
Automotive Parts and Equipment Mlanufacturing Industry, a supple-
mental Code to the Basic Code of the Automotive Parts and Equip-
ment Manufacturing Industry, and hearings having been duily held
thereon and t~he annexed report on said Code, containing findings
with respect thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hughi S. Johnson, Administrator for Industrial Recovery,
puruan toautorty estd i mebyExecutive Orders of the Presi-
dent, including Executive Order N.64-,dtdDcme 0
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Codle complies in all respects withl the
pertinent provisions and will promote the policy and purposes of said
Title of said Act; andi do hereby order that said Code of Fair Compe-
tition be and it is hereby approved; provided, however, that the pro-
visions of Article IV, paragraph (15), insofar as they prescribe a
waiting period between the filing~ with thle Code Authlority (i.e.
actual receipt by the Code Authority) and the effective date of re-
vised price lists or rev sed terms and conditions of sale be and they
are hereby stayed pendingn my further order; and provided further,
that approval of the provisions of Section 5 of Article III and Sec-
tions 1 and 15 of Article IV shall terminate if and when the provi-
75034*-829-10I--8 I1

sions of Section 5 of Article III and Sections 1 anrd 9 of ~Art~icle IV
of the Supp]Clementar y Code for th~e R~eplacement Axle Shaft Mianu-
facturing Industry and Se(tion 5 of Article III and Sections 1. and 14
of Artl'iclet IV of the Supplem~entary Code for the Aut~omobtile Hot-
Wa~ter. Heater Masnufac~turing IndutrytIS or anyv of such, provisions
are nicxlifiedl.
HUGTTH S. Jonxs~oN,
Admnlili~stratori for Indu1strial Recovery.
Ai1pprova l recome n n ded :
C. E. oAD.13s,
D~iv'isjio Adrn.illstrator.
WIxsruxKICroh, D.C.,
July 18, 10J.J


The Wthite House.
Sma: The supplement to the Code of Fair Competition for the
Automotive Parts and Equipment Mainufacturing Industry covering
Fair Trade Practices for the Leaf Spring Mlanufacturing Product
Group, a sub-division of the said Industry, was sulbmitted to the Ad-
ministrator on September 22, 1933 by the Leaf Spring Institute, rep.
resenting approximately 90?o0 of the total volume of sales and memu-
bers of the Trade.
The Hearing was conducted in WVashingt-on on December 7, 1933
and the supplement was revised during the recess of this Hearing
and is submitted in its present form for approval. Every person
who equste anapparance, was properly heard in accordance
wiho the statuor and af8regulatory requirements.
Wi t sauomhile thePrdct Group is nation-wide in character, it has not
experienced any increase in the number of establishments during the
past few years.
ARTICLE I states the purpose of the Supplementary Code.
ARTICLE II accurately defines specific terms employed in the
Supplementary Code. This Product Group is a sub-division of the
Automotive Parts and Equipment Manufacturing Industry and the
labor provisions of its Basic Code as approved N~ovember 8, 1933, are
the labor provisions of this Supplementary Code.
ARTICLE III establishes an Administrative Committee, con-
sisting of the Executive Committee of the Institute and one addi-
tional member, to be selected at the discretion of the Administrator
and one non-voting member, to be appointed by the Administrator.
It also provides machinery for obtaining statistics and the adminis-
tration of this Code.
ARTICLE IV sets forth the fair trade practices of this Supple-
mentary Code, which has been especially designed to effect fair com-
petition in this Product Group of the Industry.
ARTICLE V provides against monopolies and monopolistic prac-
tices and provides for the submission of supplementary provisions
to this Supplementary Code or modifications thereof, and contains
the mandatory provisions contained in Section 10 (b) of Title I of
the Act, and states the effective date of the Supplementary Code
shall mean the tenth day after it has been approved.

The Deputy Administrator in his final report to me on said Sup-
plemental Code having found as herein set forth and on the basis
of all the proceedings in this matter;

I: find that:
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of thne National Industrial Recovlery
Act, including removal of obstructions to thne free flow of interstate
and foreign commerce which. te~nd to diminish. the amount thereof
and will provide for the general wTelfar~e by promoting the organiza-
~tion of industry for the purpose of cooperative action among the
trae goup, y iducngand maintaining united action of labor
tande mngement, under adeuate governmental sanctions and super-
vision, by chiminatmng unfair competitive practices, by promoting
the fullest possible utilization of the present, productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products thr~oulgh mereasmng purchasing
power, by reducing and relieving unemployment by Improving
standards of labor, and by othlerwise rehabilitating Industry.
(b) Said Product Group normally employs not more thtn. 50,000
employees; and is not classified by me as a major industry.
(c) The Supplementary Code as approved, complies in all respects
with the pertiznent provrisions of said Title of said Act, including
without imitation Subsection (a) of Section 3,ef Subsetio a) o ?
Section 7 and Subsection (b) of Section 10 theef;adta h
applicant Institute is an industrial Association, truly representative
of the aforesaid Industry;,and that said Institlute imposes no ineq-
uitable restrictions on admission to membership therein.
(d) The Supplementar~y Code is not designed to and will not
permit monopohes or monopolistic practices.
(e) The Supplementary Code is not designed to and will not;
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
SuFpplemnentary Code.
For these reasons therefore, I have approved thiis SupplemnenJtary
Huana S. JoaNsoN,
JULr 18, 1934.



Pursuant to the provisions of Article II of the Code of Fair
Competition for thle Automotive Parts andi Equipment M~anufa.ctur-
ing Industry, duly approved by the President on November 8, 1933,
the following provisions covering fair trade practices and the ad-
ministration thereof for the Leaf Spring Mlanufacturing Product
Gopwhich has been organized as an administrative unit under
th riu1"rginal Equipment and Replacement Parts Divisions of the
Automotive Parts and Equipment Mianufacturing Industry, are
hereby established as the standards of fair competition for said.
Product Group and shall be binding upon every member thereof.


The term Product Group as used herein is defined to mean the
production and/or manufacture for sale of leaf springs and/or their
component parts for original equipment or replacement parts on
motor vehicles or any other vehicle or product except street cars or
railway cars.
The term "L Member or "L Member of the Product Group as used
herein includes, but without limlitation, any individual, partnership,
association, corporation, or other form of enterprise engaged in the
production and/or manufacture of thle products of the Product
Group, either as an employer or on his or its own behalf.
The term Class 'A' M~emnbers as used herein is defined to mean
members of the Product Group whose products are sold to manu-
facturers of motor vehicles or any other vehicle or product except
street cars or railway cars, for original equipment and for service
requirements thereon.
The term "i Clas B Members "~ as used herein is defined to mean
members of the Product Group whose products are sold to customers
other than buyers of original equipment for replacement of
original springs or parts thereof for motor vehicles or any other
vehicle or product except street cars or railway ears.
The term "L Class C rMembers as used herein is defined to mean
members of the Product Group who maintain spring service stations
which manufacture a part or all of the replacement spring and parts
thereof sold by them for replacement of original springs and parts
thereof for motor vehicles or any other vehicle or product except
street cars or railway ears.

Tjhe term Primary Outlets as used herein means such customers
as may be so classified in accordance with the provisions of Para-
graph 14 of Article IV.
T]he term Secondary Outlets as used herein .means suchl cu~s-
tomers as may be so classified in accordance with the provisions of
Paragnraph 14 of Article IV7.
The te~rm Institute as used herein is defined to mean the Leaf
Spring Institute, a trade association at present having its headquar-
ters office in Detroit, M/ichigan.
The term Basic Code as used herein is defined to mean the Code
of Fair Competition for the Automotive Parts and E~quipment Ma~nu-
fa~cturingn Industry, as approved by the President on November 8,
The term Code Authority as used herein is defined to mlean
the Code Aluthority designated in the Code of ]Fair Compyetition for
the Automotive Parts and Equipment Manufacturing Industry.

(1) (a) The Executive Committee of the Institute shall consti-
tute the At~dministrative Committee to assist the Code Authority;
and the Adminlistrator in the administration of the fair trade
practice provisions hereinafter set forth and the provisions of the
Basic Code, to which these f air trade practices are a su pplement.
One additional member may in the discretion of the Admmnistrator
'be added to represent :non-members of the Institute who assent to
sfceand comply .with, this supplement, such additional member to be
selected by such non-members of the Institute by a fair method
ppropvedb the Admninistrator.
(b) In addition to membership aes above provided, there may be one
additional member, without vote, to be appointed by the Administra-
tor, to serve without expense to the Industry for such term as he
may specify.
(2) (a) It being found necessary, in order to-support the adminis-
tration of this supplement and to maintain the standards of fair
competition estabhlshed, hereunder and to effectuate the policy of the
Act, the Administrative Commaittee is authorized, subject to the
approval of the Administrator:
(~1) To incur such reasonatble obligrations as are3 necessary and
poper for the foregoing purposes and~ to meet such obligations out
funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the supplement;
(2) TIo submit to the Admlinistrator for his ap~prova~l, subject to
such notice and opportunity to be heard as he may deem necessary,
(a) an itemized budget of its estimated expenses for the foregaomg~
purposes, and (b) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
Product Group;
(3) Aftecr such budg7,et and basis of contribution have been
approved by the Admimistrator, to determine and obtain equitable
contribution as above set fourth by all members of the Product Group,
and to that end, if necessary, to institute legal proceedings therefore
mn its own namne.

(b) Each member of the Product Group shall pay his or its equi-
table contribution to the expenses of the maintenance of the Aidminis-
trative Committee, determined as hereinabove provided, and subject
to rules and regulations pertaining thereto issued by the Adminis-
trator. Only members of the Product Group complying with the
Supplemient and contributing to the expenses of its administration as
hereinabove provided, shall be entitled to participate in the selection
of members of the Administrattive Commnittee or to receive the benefits
of any of its voluntary activities or to make use of any emnblemi or
insignia of the National Recovery Administration.
(c) The Administrative Committee shall neither incur nor pay any
obligation in excess of the amount thereof as estimated in its ap-
proved budget, except upon approval of the Administrator; and no
subsequent budget shall contain any deficiency item for expendituresu
in excess of prior budget estimates except those which the Adminis-
trator shall. have so approved.
(3) (a) The Admimistrative Committee shall, subject to the dis-
approval of the Code Authority and the Administrator, have the
power to adopt by-laws and rules and regullations for its procedure
and to obtain from members, directly or through an impartial agency,
such information and reports as are required for the administration
and enforcement of this Supplement; to cooperate with the Adminis-
trator in regulating the use of any N.R.A. insignia, to hear and
adjust complaints, to initiate, consider and recommend to the Code
Authority for transmittal to the Administrator further fair trade
practice provisions to govern the members of this Product Group;
and to discharge the other powers and duties provided in this
(b) If the Administrator shall determine that any action of a
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public interest, the Ad3mimstrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such Code
Authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to dis-
approve after thirty days' notice to him of intention to proceed with
such action in its original or modified form.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Administrative
Committee shall (1) impose no inequitable restrictions on member-
ship, and (2) 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 mlembership,
organization, and activities as the Administrator may dieemn necessary
to effectuate the purposes of the Act.
(d) In order that the Administrative Committee shall at all times
be truly representative of the Product Group and in other respects
comply with the provisions of the Act, the Administrator may pre-
scribe such hearings as he may deem proper; and thereafter if he
shall find that the Administrative Committee is not truly represent-
ative or does not in other respects comply with the provisions of
the Act, may require an appropriate modification in the method of
selection of the Administrative Committes.

(4) All members of this Product Group shall be bound by the
provisions of the Basic Code. Flior thlis purpose, all provisions of
the Basic Code are hereby declared to be a part of this supplement.
In case of any conflict between the provisions of this supplement and
the provisions of the Basic Code, the provisions of the latter shall

(5) The Administrativre Comm~ittee shall cause to be formulated
accounting methods and principles of cost ~finding and/or estimating
capable of use by all members of the Product Group. After such
methods and principles have been formulated and approved by the
Admllinistrator, full details concerning them shall be made available
to all mnemberls. Thereafter all members shall determine and /or
estimate costs in accordance with suceh methods and principles.'

In addition to the provisions of Section C of Article V7I of the
Basic Code, the following described acts shall. constitute unfair~
practices :
(1) Selling Belowo Cost.--(a) To sell the products of this Product
Group at prices below cost, determined in t~he manner provided for
in Article III, paragraph 5, of thiis supplement.
(b) Nothing in this supplement shall prevent a member from;
selling at below cost as compult-ed in accordance w~ith, the provisions
of Article III, paragraph 5 hereof, providing that lit is necessary
to do so to meet a competitive price that is not in violation of this
(c) W;hen the Administrative Committee determines that an
emergency exists in this Product Group and that thre cause thereof
is destructive price-cutting such as to render ineffective or seriously"
enidanIger the manintein nce of the provisions of the Basic Code and/or
this supplement, the Administrative Committee may cause to be de-;
term~inled the lowest reasonable cost of any of the products of this`
Product Group, such determination to be subject to such notice and
hleArilgr as the Administrator may require. The Administrator may
approve, disapprove, or modify the determination. Theren after, dur-
ing~ the period of the emergency, it shall be an unfair trade practices
for any member of the Product Group to sell ~or offer to sell any
products of the Product Group for which the lowest reasonable. cost
has been determined at such prices or upon such terms or conditions
of sale that the buy3er will pay less therefore than the lowest reason-
able cost of suchn products.
Wi~hen it appears that co~nditions have changed, the Administrative
Committee, upon its own initiative or upon the request of any int~er-
e.sted~ partyT, shall cause the determnination to be review-ed.'
(2) Coclinantrl~c7 Bribery.--To give, permit: to be gaiven, or offer
to give, any~thingr of. value for the purpose, of influencing or reward-
ing the action of~ any employee, agient, or representative of another
in relation to the business of the emnployer of such employee, the
pr~inc~ipl, of such agent or thne represented party, without the knowl-
edge of such emnployer, principal or party. This provision shall not
'See paragraph, 2 of order approving this Code.

10. construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are
actually used for commercial bribery as hereinabove defined.
(3) Inaccurate labeling.--To list, brand, manrk, or pack any prod-
ucts of the Product Group in any manner which is intended to or does
deceive or mislead purchasers in somec material particular or the fail-
ure t~o brand such products for the purpose. or with the effect of mis-
leading or deceiving purchasers in some mlat~erial particular, with
respect to such products (including but without limiitation their
brand, grade, quality, quantity, origin, size, substance, character,
nature, finish material content, or preparation.)
(4) Imlitatson of tra~de-nuzrklls.-To imlitate or copy a competitor's
trade-mark, marking, trade name, or exclusive and established design
which identifies the maker or vendor of the product, with the purpose
or effect of misleading or deceiving any purchaser or prospective
(5) Inacoulrate advertising.-Tlo publish advertising (whether
printed, radio display, or of any other nature), which is misleading
or inaccurate in an material particular, or to in any way misrepre-
sent any product i including but without limlitation its use, trade-
mark, grade, qual ty, quantity, origin, size, substance, character,
nature, finish, material content, or preparation) or credit terms,
values, policies, services, or the nature or form of the business
(6) Price Guarctantee.--To guarantee Product Group Products
against advance or decline in price. This clause shall not apply to
original equipment sales.
(7) Gularantyl.--To give any guaranty or warranty on any product
of the Product Group except against defects in workmanship or
(8) RetuLrm of produscts.--The Administrative Committee shall im-
mediately proceed to formulate a uniform policy covering the return
of obsolete or unsalable products and present same for the approval
of the Code Authority and the Administrator within thirty days
from the effective date. Upon approval by the Code Authority an'd
the Administrator, after such hearing as the Admlinistrator may
prescribe, such rules and regulations shall become binding as a part
of this supplement. Until such policy has been so approved, no
member shall accept the return of any such products for credit or
exchange, except products returned because of breach of WVarranty
or as may be otherwise provided by applicable State Law.
(9) Consignments.--To ship stocks of the products of this Prod-
uct Group to distributors, contractors, manufacturers' agents, and/or
others on consignment or under the Floating Credit or Ledger
Balance plan. All existing agreements regarding such shipments
shall be terminated within 60 days from the date ofappr~oval of this
supplement, with the exception of existing contracts which, by their
terms, cannot be terminated by that date, subject to the condition
that copies of such contracts shall be filed with the Administrative
(10) Repla~oig competitors' stock.--To liquidate, purchase, or
accept a competitor's product from any buyer.

(11) Interferen~ce wills another's contracts ,--To induce or attempt
to induce the breach of anl existing contract between a competitor
and his customers or source of supply; or to interfere with or obstruct
the performance of such contractual duties or serv8ies.
(12) Coercion.--To require that the purchase of any goods be a
prerequisite to the purchase of any Product G~roup goods.
(13) Used or rebuilt products.--To sell or offer for sale rebuilt
or used products wFihich are not conspicuously designated as such.
Such designation shall consist of the word "' RebJuilt or "L Used "
stenlciledl with 11/4"1 blocks letters in red or another contrasting color
on the visible side of the main leaf, and a band or strip of red or
some other contrasting color of a minimum w~idth. of 4"1 circumIscrib-
ing the entire spring.
(14) Discriminaction.b.- To prevent unfair methods of competition
the Administrati~ve Com~mittee shall recommend to the Code Author-
ity andl the Administrator a fair rand equitable classification of cus-
t~omers based upon ser-vices rendered. Uponl the approval of the
Code A-uthority and the ~Administrattor2 after such, hearing as the
Administrator may prescribe, such classification shall be adhered. to
by all members of th~e Product Group. No member of the Product
Group shall sell his products to any customer at net realized prices
lower than are offered to all other customers of the same classifica,-
tion for the same quantity, grade, quality, or style, provided, how-
ever, that due allowance may be made for differences in transporta-
tion costs.
If anly application of the foregoing~ classifications- should wvork
unjust hardship upon any member ofl the Product Group or any
customer, such member of txhe Product Group or customer may ap-
peal to thre Administrative Committee and/or the Clode Authority,
which shall have power to makre or require such reclassification as
just ice demands.
(15)Filng f pr~ice lists.- Since it has been the general recog-
nized practice o ls B" and Class C )" members of the Product
Group to sell their products on the basis of printed net price lists,
or price lists with dilscount sheets antd fixed terms of payment which.
are dlistributed to the trade, eachi Class B and Class C member
shall file with the Administrative Commnittee a net price list or a,
price list and discount. sheet, as the case may be, individually pre-
pa"red b;y himn, show-ing his current. net prices, or price list and
discounts, as the3 case mayt be, and terms of payment. to the respectivre
classes of customers established pur~suant to p"arGraph (14) of this
Article IV, and the Admlninistrativre Committee. shall immediatelyy
sendl copies thereof to all other Class "L B "' and Class C "' members.
The Admninistratie. Committee shall likewise make such filed prices
available for inspection by customers or prospective customers of
the classification or classifications affected. Revised schedules may
be filed from time to time thereafter with the Administrat~ive Com-
mittee by anyr Class B or Class C member, to become effective
upon a, date specified by such member, which date shall be not less
than 10 days after the filing of such revised prices with the Ad minis-
trative Committee anld copies thereof with :notice of the eff~ective
date specified shall be immediately sent to all other Class "C B and
Class C" members who thereupon may file, if they so desire,

itevisions of their price lists and/or discount sheets, which, if filed
previous to such effective date, may take effect upon the date when
the revised price list or discount sheet first filed shall go into effect.
The Admimistrative Committee shall likewise make such, revised
filed prices available for inspection by customers or prospective
customers of the classification or classifications affected.
No Cllass "' B ") or Class "i C member shall sell or oiffr to sell any
product at prices lower or discounts greater or on more favorable
terms of payment than the approved schedule of such member which
is in effect and on file with the Administrative Comm~ittee as above
(16) Branch and WTarehousae Stocks.--To make sales from ware-
house stocks other than at the member's own factory unless the fol-
lowing provisions prevail:
(a) Except in cases of bona fide binding contracts entered into
prior to the date of the approval of this Supplement, and in cases of
Warehouse arrangements established prior to such date, no member
shall warehouse products on premises owned by a custom-er in whole
or in part, except in duly established public warehouses, whether or
not the customer has an interest therein.
(b) All existing agreements and arrangements regarding branch
and warehouse stocks must be recorded and filed with the A5dminis-
trailve Committee.
(c) Members shall make a reasonable service charge for services
rendered, based on the lowest reasonable cost of members m~aintain-
ing such branch or warehouse stocks, the determination of such
charge to be subject to the approval of the Administrator. No such
charge need be made on sales from branch or warehouse stocks
located in the same city or trading area as a competitor factory.
(d) On stocks which have been warehoused with a customer prior
to the date of the approval of this Supplement, the following rules
shall prevail:
A warehousing fee no greater than paid as of the date of approval
of this Supplement may be paid t~o such customer only for t.he shelter-
ing by such customer of stocks shipped to the members' other cus-
tomers and not otherwise. In connection with the making of any
sale or shipment of such stocks to such other customers and in billing
for such sales and making collections thereon, t~he member shall not
employ the services or facilities of the customer with whom such
stocks are warehoused.
(17) Terms.--(a) To extend credit terms greater than 30 days
net or net 15 prox. to manufacturers for original equipment purposes.
(b) To extend credit terms greater than 170o 10th prox. to all other
(18) En~gineeri'ng specifications.--To furnish engineering speci-
fications as used for manufacture to customers except as contained in
regularly published catalogs.
(19) Freight Allowance.-Thle Administrative Committee shall
proceed immediately to prepare a schedule of freight allowances and
submit same for the approval of the Code Authority and the Admin-
istrator, within thirty days from the effective date. Upon such
*Se p* aragraph 2 of order approving this Code.

approval of such schedule no member shall make any freight allow-
ances to customers in excess of the provisions of such schedule.
If any application of this paragraph should work; alny unjust hard-
ship upon any member of the Product Group or upon any~ customer,
such member or curstomier may appeal to the Administrator, who
shall have power to grant such :relief as justice may require.
(20) `Volume Allowan~ce---No member of the Product Group shall
extendc to any cu~stomler anly rebate or bonus based upon the total
volume of purchases of such customer over a period of time, except
as follow-s:
Each member of the Product Gro~up shall report to the Adminis-
trative Commrittee a complete schedule of rebates or bonuses for
volume allowed by him or it during the year 1933. From such re-
ports, thie Admimlstrative Committee shall select the highest rebate
and bonus rates and termls wcshich represent custo~mary selhfng practice
in the Product Grroup! in said year, a.ndl shall prepare a composite
schedule of rebates and bonuses which embodies said selected rebate
and bonus rates and terms. Said composite schedule shall be reported
to the Code Authority and the Administrator, together with true
copies of the individual sch~edules from which it was derived. ALfter
approval thereof by the Code Authlority and the Administ~rator, no
member of thie Prodcuc~t Group shall extend to any customers any
rebate or bonus at a rate higher or on. terms more favorable than'are
provided inl said composite schedule.
I~f an~y application of this paragraph should work any unjust hard-
ship upon any member of the Product Group or upon any customer,
such member or customer mayT appeal to the Admimlstrattor, who shall
have power to grant such relief as julst~ice may :require.
( 21) Erport.--The provisions of this supplement with regatrd to
pieces, discounts, deductions, allowances, exrtras, or mlethodls anid/or
terms of sale apply to direct export sales and to sales in course of
export (i.e., sales destined ullt~imately for export), and to sales of
materials used in the manufacture of products for export, except
as may be otherwise provided by the Adminristrative Committ~ee,
subject to the approv-al of the Adlninist~rator.

(~)1) No provision of this supplement shall be so applied as to
permit monopohies or monopohistic pracheies, or to eliminate, op~press,
or dliscriminate against, small enterprises.
(2) Such of thme provisions of this Supplement as are not required
to be included herein by the Ac)Lt may, with thne approval of thle
'Admiistrtor be modified or eliminated upon proposal by the Prod-
uct G~roup or anly members thereof if it appears that the public needs
are not being served thereby and as changes in circumstances or
experience may indicate.
(3) It is contemplated that from time to time supplementary
provisions to this Supplement or modifications thereof will be sub-
mintted by the Administrative Comnmittee through the Code Authority
for approval to prevent unfair competition in price and other unfair
and destructive competitive practices and to effectuate the purposes
of the Act. Upon approval by thne Administrator after such notice

anid hearing as he may prescribe, such supplemental rvsoso
modifications shall become binding as a part of this6~ Suplmet
(4) As required by Section 10 (b) of Title I of the Act, the follow-
ing provision is contained in this supplement: The President may
from timie to time cancel or modify any order, approval, license, rule
or regulation issued under said Tiitle.
(5) No member of this Product Group shall be held to have con-
sented to any modi~eation of this supplement or to any provision or
interpretation of the National Industrial Recovery Act if declared
unconstitutional by the Sjupreme Court of thle ULnited States.
(6) Violation by any member of this Pr~oduct Group of any pro-
vision of this Supplement is an act of unfair competition, and the
offender shall be subject to th~e penalties imposed by the Act.
(7) The term "L Effective Date as used herein means t~he 10th day
after this Supplement shall have been approved by the President.
Approved Code No. 105--Supplement No. 3.
Registry No. 140&8

lII II 11111 1 l111iiU1 11111111111|111111
3 1262 08855 5486