NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
~MACHINE KNIFE AND
ALLIED STrEEL PRODUCTS
UNIV. OF FL UB.
DOJg NTS DE PT.
For sale by the Superintendent of Documents. W'ashington, D).O. . Price 5 cente
Approved Code No. 263
Registry No. 1331--1--01
AS APPROVED ON FEBRUARY 6, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
Th i pu lihe.it1ioin is for saEle br thIe r u er i nteln ded n of Documeniit s, Cov\ernm Ien t
P~int i ng OfficP, Wash-iing~t on. 111. '.. an d byg d iat rict office Of the~ni Brealu of ForeCign
and Domiestic Commer~lce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
A~ltrn. a 31a. : ."=(14 Post (Mike Bul ding..
(Hirininghanl. Al.; ('llfllc' CF ederalrlCne Duilintig.
li1n. rl', .Y.: C'lnhambe Iof (Commeiirce Unilding.
(Harllest on.~ l'.: .('.: I'hninhe' r f C'o mmerICe. C BuibjlingF .
.Tc'l;~licao.s, Ill 1;.: ut ('I17041. .'( Nort Well ll .<''C Streetlll.
Iclvla nd t2=l E (.'llio.: Ihambr~ ofrtl niommerce.
In~llillow. Trexl. : ChambFerli f omRa e Duilding
Houston1. Te.1 : ;:1l lumberof Clommece ulig
lIindinspeil ,I~i. l.: t'2 Cnumbrcll of u~ Roitrce Bulding.
Jacksolenville,: Fla. Fchamber Columce Building.~
Approved Code ]No. 263
CODE OF FAIREZ COMPETITION
MACHINE KNIFE AND RALLIED) STEEL PRODUCTS
As Approved on February 16, 1934
APPrROVING CODE OF FAIR COMPrETITIION FO THIE AfACHINIE K1ENIE AND
ALLIED STEEL PRoDvers M\ANUracTCRISe hoNUSTRP
An app~lication 'havingi been duly made pursuant to and in full
compliance w~ith the provisions of Title I of the National Industrial
Recovery Act, approvedt Julne 16, 1933, for appr~oval of a Code of
Fair CompIetit~ion for thle Manchine Knife and Allied Steel PEroducts
ra nuIfact uri n g I ndust ry, and hearings having been duly held thereon
and the annexed report on said Code, containmg~ findings withi
r~espect. thereto, ha ving been madel and -ir~ec~ted to the President:
NOW, THEREFORE, on behl~nf of the President of the United
Sta tes, I, Huigh S. Joh~nson, Admlninistrator~ for Industrial Recovery,
p:ursuant to auithority~ vested. in me by E ecutive Orders of the
President, including Executive Order N.6543-A. dated Decembe~r
30, 1933, and otherw-ise; do hereby incnllorporte by reference said
uInnexedl r~ep-ort and do findc that said Code complies in all respects
with the pertinent provisions and will promote the policy and p~ur-
poses of s~aid Title of saidl Act; and do hereby order that said Code of
Fair Competition be and it is her~eby approved; provided, however,
that the provisions of Ar~ticle VIII, mnsofar as they preserthl e a wait-
mng periodl beptween the filing with the Codle Authority and the effec-
tive dante of revised price lists or rIev'is;ed terms anlld CondI~itionls of
sale be and they are hereby stayedc pecndinlg my\ further Order
either withini a periodl of sixty days from the effective date of this
Code or after the comipletioin of a study of open price associations
now beings co~nductedl by the National Recovery A2dmninistration.
Heanr S. JonISSON,
Adm1,inistratorr for Indulzsftri Recovery.
Februarlly 6, 1934.
REPORT TO THE PRESIDENT
T'he Wh'ite Howte.
SZR: This is a report on the Coide of Fair Competition for the
1\lachine K~nife and Allied Steel Prodlucts Mlanufacturing Industr~y,
the hearings hav\ing beern heldl in WVashington on the 11th day of
Dcembenlri inl nercordumii~i \-eith the prov,~isio~ns of thle ~Ntional Indus-
tr~ial Recoveryt1\ Act.
PROVISIONS~~ AS TO HOS AND WV.\GEIS
Emplloymentr l is limitedr~ to 8 hourMs p~er day! andi 40) houriis per
wneek w~ith the exception~ of those~ emlployeesi engaged inl emegnciicy
the nce ~ity for service~s of ~pec~ially .ikilledl emnployees who calnnot
be r~ephluee. T, pr~oviie foi r saso~nli demandlts over\timle is allowedl
to the extelt of 3 hoursl~ p~el r week forl 8 weeksl; in any~ c'6-w~eekr period.
Overtime in t~(excs of $ hlourl inl a~ny 94-hour,(l periodl o in exc~essi of
40 hours in any 7-day per1io~d will b~e pa;id for at onle andl onic hlalf
times the~ Irinorml raite.
Mn~inilml wngesvt~ of 40~ ~cnts per~l horC1' forl mal~lerS andl femalles ar1e
estabfished~c. Femaule? empilloyee> periformingii sub.tanitially the same
wor~~k as maile emp-lloyees~ w\ill receive ther samlc rante of pay as male
empyloylee anld wheret 1they di pinee~ mentheyl wl~' ill 'ec~eiv'e the same
rate of earn!iiri ng s mncr.
Clerical c'miployeesr shall1 noit be pa~idl lew than $1S.rr0 p~er week.
ECONOMIC EFFE('T1 OF TH)E CODIE
In April 19;33) this Indu tryl!, wchirh comnprises apploximaltely 30
firs, mplyedabot 30 prsos. ince thle adop~tion of thie 40-
hour w\eek] as provided~ in this Codet employmllentt has increased to
534 persons" in Septrlmber 1933~ or an inlcrease o f G?"i.
.The invested cap~itn of the Indusltry! is about $3,000I(,000j and thle
averaget amillal V-;il1(- Of its pmal~cdlets ov\er' Ithe past five yearnls is
Thet Depu'ty' A~lainist ra;tor inl hi~ finall repol~rt to, me onl said Codle
having foulndl as~ hereinl set forlthl and1 onl thet ha ~iT of all the pr~c~eed-
jring in this ma~ltter':
I findc that:
(a) Said Coder is wMell des~igned~ to, promote thle policies and pur-
poses~ of Title I of th~e National TIndtr~ialn Recovery Act, including
removal of ob~stru~ctionsl to thet free Hlow\ of interstate and foreignl
commerce which tend to dliminish~ the amoulrnt theretzof and w~ill
provide for the general welfar' e by promolcting~ th~e o~rgan;lrization of
industry for thle pm-lpo)se of cooperatilivel actionl amolrng the tradeu
groulps, by indurcinig aInd manillntaninfr uite ctio 3Cl01 of labor)l and~
mainage mentl url~~nder aeualte (overnmentalllt ;Ianc~tionsl and superv\~ci(, ion,
by elimninatinR unrfair comlrpe~titive practices.-, by pronwllctingi,the fullest
possible uitilizationi of ther present productive cup-wcity of indusrltries,
by avoidlingr unduei restriction of produc~tion (ecep~llt asl Ininy be temi-
agr~iculturaa l pr'oduc.ts through increasin~ngf purchalsingr powe,VC' by re-
dueing andt relievinc uneml~ploy~ment, by imnprovingr standatnrls of
labor, andc by otherwise rehablilitaltingT indur~stryS.
(b) Said Indtustryr nor~mally em~ploys~ not more than 50,000 em-
ployees; and~ is not classifi d byr me as a ma1:jor indusrltry.
(c) The C'ode as alpproved c~omplies in all re~spelctsi wit1 thle
pertinent p~rovisions of said Title of said Act, inlcluding w Piithout
limiitationi Slbsetction (a of Section. 3, Subsection (a) of Section "7,
andt Subsectionl (>) o Sec~tion 10 thereof; andl tha~t the applicant
group is an indlustrial asso:ciat~ion truly replresentative of the afore-
saidl Indlustry~; and that said a~ssawintionl imposes no iniequitable
restrictions on adlmission to memerll~ lship therein.
(d) The C'od~e is not dlesignled to andl will not permit monopolies
or mlonop~olistic practices.
(e) The Code is nlot dlesigned to and will not eliminate or o~pprecss
small enterprises and will not operate to discriminate against themc.
(f) Those engaged2 inr other steps of the e~lconomic pro~ce~s have
not beenl dcpr~ivedl of th~e righTt to be heard prior to approval o~f saidl
F~or these reasons, this Codle has been approved by me.
H~Uant S. Jon INsow,
FEBUAnRY 0), 193-1.
CODE OF FAIR COMlPETTITON FOR THE MACHINE
KNIFE AND ALLIED STEEL PRODUCTS MANUFAC-
ARTICLE I PT'RPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following pr1ovisions ar~e established as a Code
of Fair Comipetition for thle Machinie Knife and Alliedl Steel Prod-
nets Mlanulfacturingf Industry, andl shall be thle standards of fair
competition for suc~h Inldustry! andi shall be b~indling upo~n every
ARnTIcLE 11--110NOPIOLY .\ND REP'RESPION
NoJ prov\isioni of this CodZe shall be soi applied as to permit mnonop-
obies or mlonlopolist ic p~ract ices, or to eliminate, oppr~ess, or
SiECcron 1. The termn '' Machline Krnife and Alliedl Steel Products
Ma~lunufaturinrl Indlustry ans used~ her~ein is defined to mean the
malnulfacturee focr sale of~ machine knives andt allied steel products,
us~red as mach~lile~ paRlts and pr~imarily for such purposes as cutting
andt sicrap~ing v.ArioulS mater~lialS.
SEC'. ". Tile tcrln "XsSiOCl'dloll' a~ se hrre(1 is01 IS (lefilled toi meafl
the M~chiniie Kniife Asso~cciationl of thle United States.
SEC. 3. Thie termll '' A~ll~eluberip "' usi used herein is ie-fined to mean
memerlr~~ s of ther Ma~chine Kn~rife Assc~ciation of thle United States.
SEC. 4. 11)1( tennil *EmpIoyee~~ us us~ed herein includes anyone
en~ngaged in thle Induslctry? inl any cap~acityr receiving compensation for
his serv\ices~. i reiirepc~t i ve of the Inatur~e o mlethlodl of p~ayment of such
c~clI pellsi t io~n.
boundlll~ by1 ;I legal co(ll~ntrnt f( to lear a tradt~e.
SfEc'. ). 1'11( (Prill Emp~loyer "~ as uisedl hercini inlcludtes anyone
by! whomrll any. nhcl emplloyee ;s c~ompnls~iatte o,r employedl.
SEC.. 7. "I'le (PCI1 AClelliber orf thie Inidusitry as usecl lieieren in-
cludles anyon()le engaged"~ inl the Industryfl~ as.C above dlefined. e~ith~er as an
empnlloyer'or on hlis own behalilf.
us~edl hrcin~i i shall mean;1, Irspctcfi elythe' fl Plreident of thle UTnited
States. Titlr I of the Naiti~nal Indu iitrial Recoverly Act, and the
Adlminist ratorl forl Indu I st rial Rcovery.v
AnrTTCLE I.7- ORKING 110CRS
SECTION 1. 'la~i(7i' tumll IITour8'.-NO C1niploye' e shall be permlitted
to wor~k in xcesrs~ of forty (40) hours in ;any one (1) w.lek or e~i~ght
(8) h~our~s inl any~ twenty-four (e4) hour p~eriodl begrinaitigi at Illid-~
night, except as hlerein otherwise providedl.
SEC. 2. Exscepti'ons asr to Irour8-I~' F.lcutives an d salainen.-I (a)
The provisionsu of Section 1. above shall niot apply to either~ execu-
t~ives andi super~visors and their immediate assistants r~ece\iving thirty-
five ($35.00; dlollar~s w~eekly or mor~e, or to tr~avelinrr salesmlen..
(b) Emer~gency overthn2.-The maxl~imuml hourIs hxed in the fore-
going section shiall not apply to nyemp-loyee onl emc~argenlc mnainte-
nlance or emlergency~ r~epar work: involving breakd~owrns or p~rotectio~n
of life or property, or on emerg~encies ocensicnedl by the necessity for
services of especially skilled~ employees which cannot be caHred~ for
by t~he employment of adlditional men. B3ut in any such .special cas1e
at least onle anid onle half times the nrorm-al rate shl~~l be pa;id for hlones
workedcc in excess of th~e maximum provided in Section 1 above.
(c) Ordinary,~ ovcrtimlre for seasonazl peri~code~.--The mnaximum~ hfour~s
fixed in Section 1 above shall not apply for eight (8) weeks in any
twrent.y-six (26) weeks period, during which overtime shall not ex-
ceed eight (8) hours inl any one (1) week. In anyT suchl case at
least onie and onie half times the normal rate shall be paidl for hours
worked inl excess of eight (8) hours in any twenty-four (24) hour
periodl, or in excess of forty (40) hours in any seven (7) day p~eriod.
(d) Repofrting oviritimre.-All work in excess of the hloursr pro-
vided in Section 1 above sh-all be reported to the Code Authorit~y
in such detail as may? be requi~red.
SEC. 3. Sunday andCI hlol~lidY work'.--Not less than one and one half
times thle regu~lar rate shall be paid for all work per~formlled on
Sundayvs or legal h~olidays, but watchmlnen are exceptedl fromt this
SEC. 4. TE'rrClimenzc.-Wa~'tch men shall be pe~rmi ttedc to wor~lk not in
excess of forty-eight. (48) hours per week.
SEc. 5. Em~ploymentf)l byj sevral''17 employers.--No emlployer' shall
knowinlgly permit any emplloyee to wor~k for any timne whlich, when
totaled w~ithl thalt alreadyl~ perfor~me d for another employecr or em-
players, exceedls the maximnuml p~ermiitted herein.
S EC, j 6 1E,Zjl 11 1) Jm it itour for w!'orkXing 5 cploye0rs.-Emnpl o'e rs who
personally p~erforml m~anulal workr or are engaged in mechanic al
operations shiall not exceedl the prescribed~ max3imumll number of
S~ECTION 1. (0i) No employllee. except as hereinafter provided, shall
be paidi at less tha~n the ru~te of forlty (40) cents an. hour.
(b) C'ler~ical emnployete s sh~lall be pa~id at a r~ate of not less than fif-
teen ($15.00)) doline~s p~er week;, pr1ovided however, that office boys
andl girls and mnessengers1~ shall be paidl at a rate not less tha3n eighty
(80) percent of the mljinimumll salary herein, providedc, and provided
further tha~t the number of whT office boys andl gir~ls and- me~ssengrers
so paid shall constitute not moure than five (5) percent. of thle total
number of office or cler~ical workers emnployed by any one emlployer ;
but in any case, each employer shall be entitled to employ two (2)
SEC. 2. Piecer rat~es.-Thlis Article estab~llishles a minimum rate of
comipensationi, irrespective of whether an employee is actually paid
on a t.une rate, on a piece rate, or other basis.
SiEC. 3. Fema)les ---Femlale employees p~erforming substantially the
samle wor~k as male employees s~hall receive the same rate of pay as
miale emp.loyee~s and where they displace mnen, they shall receive the
same ra te of~ earnings as the men theyv disphee. The Code Authorit
sh~all file with the Admiinistrator within ninetyr (90) dlays aft'erth
effective dal~te of this Code a dlescr~iptionl of all oc~culption s in the
I~ndustryS inl which both men and ~omien are employed.
SEC. 1. -1 pp)'ereticc's.-R eg!ularl Indentulredl opprentices shall be
paid n1 star~tingR rate niot less than eigihty (80) percent of thle Imini-
mumi set fourth inl Section 1 above. Thle nmoriber of a7pprentices shall
not at any timel exceedl the raftio of one (1) apprentice to tenl (10)
skilled workmlen engag~ed in pr'oductionl. A copyr of all such appren-
ticeship conltrnects shall be filedl with thle Clode Aulthority.
S--- -- ~~.EC. 5i. Disab7lr:ld Ie mployees.--A n indlividuaw l w-hose earning capa-
city is limiited~ because of agre or~ p~hysical or mental handicap- may~ be
em~ployed on light w-ork at a wage below thle miinimur m established
by this Code, if the emiployer obtainis fromi the State Auithority
designatedl hy thle United State~s Depar~tment of Labor a certificate
authorizing rhis emiiploymnent at suich wagesr anld for such hours as
shall be statell ini the ceritificate. E~ach employee r shall file w~ith the
Codle Auithor-iity a list o.f all sulch personsl empllloyed by himn.
SEC. i. -rjl8it?~ HR/ht/ c .irl/ &0&/.- fl;thlD tlillfty (3(j clayS water tile
effective date o~f this Codele thle w\agyes paid all workers whose pay is
above thle nalinlinanll hall b~e equitably adjusted if this has not
already~ beten clonle since May! 1, 1933. In making such r~eadjustmrent,
there blhll be( noi cecreee~ in wag~ie rHt~es at. this time. Within isity
(60) days" of effective date the Code Aulthorityv shall report to the
A11minist entorl thle readr~justm nents madce.
AIICTICl.Ei V~I- x~ENEltAL LABOR PRO\.ISIONS
Secnow! 1. InI comprilliance w~ithi Section 7 (a) of thle Act it is
prlovidedl- : (u)1 tha~t emlployees shall have the right to organize andi
bargaii n co~llec~tively thr~oughl repriesenitative s of their own choosing,
Anld sha11ll h fr~ee fromll the interference. restraint, or coercionl of
emlploy'ersh of Inborl. or thleir agents, in the dlesigrnation of such repre-
setatllliv.'~ es o ini ctlf-covenn~ Iizationl or in other co~ncer~ted activ.ities for
thle ,Iiin-pr e o~f cocllc~tivec bargairningll or othier multudalaid or' prloteC-
tion;3 (b) thait noc employe~!ce and~ noC oneIC seeking emnploymlentt shall be
rTcllllfetl is a cfalnl illoll o~f emlplolvlinct (~ joil ally colinpany union
of' to, RI~r~ni ff~oli~ jolllllip. IlgalZ ny, oi zbbS~ting R 18600' Or'gnDIZg-
tionl of hlis ow\n chloosingp; andl (c) that empl~loyers shlaH comrply with
the nlainximuml honrllS of 1Inbor. mlilimumlll rantes of p~ay, andl other con-
ditions~ of emplloymerltnt approv\ed rl pr. ~escribedl by the Presidenit.
SEC'. L. iNo per.
o)elrationslc orI neeupat);ionlS hazall~lllrdo inl naturI or' detrimiental to
bealith. 'IlTh Code~ Authiority shall submiit to thle Adlministrator
before ninerty (90) anys a2 list of suh1!1 neeupatll~ion ~. nl anyV Sta~te an1
emlploryerl shall be
~el~rmits,, shoing\i thiat thel unployee~!t' iC of thie Icrequired~t age.c
SEC. 3. Whltllll rtc'l SI;tat' fllis COle wild!1 n0( N~~lerselr ;ily IHWs
of .sulChi State imiposiing miore str~ingent requcli Ir'lmentlfs; on emplo~1~Yers
reglulating~ the age of emloyell!c es, wage~rs, hou~ris of wurk~l, hea~;lth,? firet,
ol r gner~al workling condtitiln.-;, thanll under('l thiY ColE~.
SCE(. 4. Emlployerst shanll niot r~eelnwify empllloyee.-, or clhutic oif thre
fuige to dcfeat thle purpos'"es of ther ~c~t.
to emplloyee~s, full copies of this C'cdet.
SEC'. 6. Every emlployer shall ma1ke r'easonablle~ provi\.sion~l for the
safety and~ healthy of hi empiloyeeg s at the p~line andII (Iurinp thc hours
of thleir empllloyment.
To, fur~thler ff~ec~tuate thle polic-ies o~f the~ Act, a Code ~Authority i.;
hereby ~onistitutedl to admiiinister. supervi\ise. and pranoiicte~t the pler'-
forma~nce of the provisions of th~is Code.
SECTION i. The Codle Authlority. lhall c-misi~it of noct less thian five
(5)j and not miore thann nine (9) mem~riberi live (5) of whom~11 Shall be
apploinlted. by the Execu~tive Conunlllitter of th~e As veintjlionl. If any!
members of the Indlustry), whoic pyn\ thetir pro'portiolnate share of thect
expense of the administration o~f thel Cod,~e, but wcho are nonmillemberlis
o~f thle Association, desire rprlese~nttation,. they~ miay elee~t, hy mine1 fa~ir
mnethiod, subject to the approva;l of ther Admiinistrat;lor', one (1) mem-
ber. Th'le Adm in~iist ratorl mayR! app~cintl not oveCr three (3) mr embiers
SEC. 2. In Ordler tliat the C'Ote Alltlllan't! .shT atall R tile 81 (10-e truly
representative of the Indusi~try\ andi in o~therl respc~ts ccanp~ly with the
pr1ovisionis of thle AIct, the Adminiistrator( niny p1; ~Icrovide such hearings
as her nliny' d1eens prolper: andl, thecren fterl i f he shall .final tha~t th~e Code
Authrityis nt trly epesentative orl cloes not in other resp~c~ts
compllly w~ith thle pr~ovisio~n s of the Ac~t. mayn reqcuir~e an alplcpropintou
moldification in thle miethlod of selection of ther Cocte AuthorC~lity.
Siie. 3. It is the inltention of thne IndusrltryS to keep~1 thie Plresidetrt
in~formlle d as to the observ\an~~ce or nono~bservanlle of this Code.l and~ as~
to whether thle Ind~ustr~y is talking applr~op~~i~ rit step t) et't'ctulafte the
dleclar~ed p~olicy of thle A-ct. Therefore. conehl emuplo yer~ hal pIrepare~'
and file with uch person- or oraiainasteCaeAnhrt a
desligna;te, and1~ at suchI timells adl~ in such mainner as~ mazy be prle-
scr~ibed by the C'ode Anlthorit'y (to beC held andl rl ed subject, to the3
liiinitatialls o~f Artic~le XI hcre< f), Anrti tiC s of ~lanit c~aprity~ idinue6
of production, volumie of sales ini unlits andr dollar rde'irl' reCeived,.I
Unflledl orrer. 111lllber o~f essip~loy!ees. nTrage ra~tes. cenip~levc c enrrllirs,,
andl hou~ri of work.
It i? hiowever. exprlessly pro(vided,17 thalt thel jurli-dlictfio of thre
C~od~e Atuthoriity' undter this~ Codet ove~l;r any empiloyer is limiited. to thant
portion of the business and employment of such employer, which
Is within the Industry.
SEC. 4. If the Administrator shall determine that siny action of a
code authority or any agency thereof may be unfair or unjust or
contrary to th~e public interest, the Administrator 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 spending final action which shall not be effective
unless the Administrator approves or unless he shall fail to dis-
approve after thirity days' notice to himi of intention to proceed w~ithl
such action in its original or modified form.
1\lembers of the Industry shall file with the Code Authority a
complete schedule of price 'lists, terms, discounts, and conditions~ of
sale, including points of delivery, for the products of the Industry
within ten (10) dlays after the effective date of the Code; such price
lists, terms, discounts, and conditions of sale, including points of
delivery), mayr be r~evised only upon notice by registered mail to the
Codle Auth~ority, and shall become effective on the tenth day after
such notice unless the Code Authority shall authorize a shorter
period. The Code Authority shall immediately send copies of all
price! lists,~ terms,~i dlisLoulnts, andl conditions of sale, includringr points
of delivery, so filed to all members of the Industry cooperating in
the admiinistration of this Codle. Effective filed. price lists, terms,
discounts, and conditions of sale, including points of delivery, shall
be open to the inspection of the trade factors as each mnay be
RIemnbers of the Industr~y hshll not sell their products at other
prices or on other terms or conditions than set forth~ in their ownr
price lis~t. W~hen any members of the Industry revises his price list,
any other member of the Inldustry may revise his price list accord-
ingly to become effective on the same date as the revisedl price list
ARTICLE IS--COST PROTECTION
Costs shall be determined in accordance with the principles enu-
mnerated in anl adlequate cost systemn to be formulated by the Code
Authority withh t~he approval of the Admninistrator. The Code Au-
thority shall with the approval of the Admninistrator specify those
itemsu of cost whlichz shall be allowable. It is understood that a mem-
ber of the Industryr may~ use any cost systeml upproved by the Code
Authority a nd the Adm Iin istrIator.
ARTICLE S--CODE OPEN To ALL EMPLOYEES
Memiibers of the Indlustry shall be entitled to participate. in and
share the benefits of the activities of the Code Authority and to
participate in the selection of the members thereof by assenting to
and complying with~ the re~quiremenelts of this Codle. Each member of
thre Indulstry aIccep~tiigr the benefits of the activities of the Code
Authority relativ-e to the preparation and administration of this
Code shall pay3 to thle Code Auithor~ity hiis procplr~tio~nnto shar~e of thec
amouints necessary1 to decfray~ the expecnse of a.-embllling. ana~ly\zing
andpubishng uchreprtsandant. his Inoprc~''tiolnate share
shall ber based onl the volum111e of bu)lsinle si un<1/or: such' other equIitable
factors w~hich1 theC ~`(~Co Ath~lor'ity may13 presCcrlibec and~ ll the Adin-
In addcitioon to, thc iniformanition requ~ittred to be submiittedl to thle
Codle Altho-r~ity-, there shanll b~e fu~rni hedr~ to Grove~irrunent ag encies~
Fuch staltistical inlfo~rmatiol n as the Adc'minisi trator.ma 1 n eeTceliiIcrsil-
sa'ry for' the purpos)()es recitedl in Secctionl 3 (a) of the! Act;.
Exicepc~t as o~th~erw\ise p1ov-ided ini thie \c~t. all rtatistics, ata, n d~: l
ilflnnforaion filedl inl ncord~~anice w\ithi the provi,\ionii of thec Codl e shall
Thle statistics, dnta, andc iniformaionutc of onei empllloyerl shaull noct to~
revealed~ to- any other emplloyer,1 xccpt tlhat, for the 1)ur1posle of
administerin= or enfo~c~ing the provisionls of this Cocde, thle Codel
Anthority, by its duly aulthlorized rtt1epresetat ives (wh salll not be
in the employ of any .emnploer affectedl by this Codle), shall have
access in sulmmarizedeC formn to any\ andc all statistie ,<1na. and1(
infor~matio~n that mayn! be furinishedi in nercordalncel w9ith. thie pr~~-~~ ovison
of this C`od~e.
ARTICLI(1E STT-SrOT TO ~rELL ]EiLOW7 Co ~T
SECTIONS 1. No employer'~I shall sell orII exchnnee1L't any prodliulct of the
Industry~ man Iu furtured~ byT him at a, prices, or upo~cn terms andl c~on-
ditions, whichl willl r~esult in the custfome r playing for thle goods.
receivedl, less than the cost ther1eof to the eller, debtermnined in necordl-
anice w-ith thie method of costing above~ described; pr~ovidedl. however-cl,
that obsolete mecrchlandise! mayn be d~isposdct of byr any7 empl)oyer at a
lesser price. but onlyl if suc(h empnlloyer,, not less than two (2) weeks
before slc~h dispiosal. has; filled w\ith the Co<1e Anlthority, for iiinanu-
diate transmnittal to, all dlirec~t competito~rs, a statilemet in wr'liting
setting for~thh an idlentifying~ descr~iptio n and quanrtity of such unr~i-
cha~ndlise.:r c and povidedt further, tha~t aIny membert,-'l may~! meet the price
competition of anyl otherr memnber whose costs under thiis Coder pro-
VISIOD niP JOWei.
SEC. i). In1 evenrt tlle C(,le Authflorif\ firlhis that- nyr\ filled price
wol cueinstability in thie market, thet Code Auth~orityr may re-
quir~e thie memnber of thle Indusrltry'\ fling su~lch price to establish. that
such pr~ic~e does not invlv\l~e a, noct reCturn' to such mnemberl less than
his cost delterminled pur1suantt to Sc~tion 1. above of this ~Articlr.
UTntil aclh~ fildc~ pl~rtl ice noer scrutliny is hcldl viola~tive of Pection 1
aIbov-e. it mnay I'Lwinni in etffct.
A~RTIC.LE XIf-ITFI-UR Rn TunIE PRA"I.w:wes
Uifair pr~ac~tices s1hall be
or misleadingr purchasers, or in misrepresenting the products of com-
petitors. Th~e following specific practices are examples of unfair
methods of competition as defined above and shall be prohibited.
SECTION i. C'letlz~~l CG/ Gid false staternents.--No manufacturer
shall, through the mecdium of his catalogue, advertisement, or any
other printed matter or by his representative, make any statement
or inference reflectinga upon the mnet~hods of business procedure of
his competitor or make any false and misleading statements regard-
ingr the product or price of a competitor.
S EC. 2. C~Ommer~IC'ial br'ibery.-No member of the Industry hl
give, permit to be eiven, or difectly offer to give anything of au
or the purpose of influencing or rewarding the action of any em-
p~loyee, agent! or representative of another employer in relation to
th~e business of the employer of such emnployee, the principal of such
agent, or the represented party, without the k~nowledge~ of such em-
ployer, principal, or party. (^ommnercial bribery provisions shall
not be construed to prohibit free and general distribution of articles
conmmonly usedI for advrlrtisingr, except so far as such articles are
actually used for commercial bribery as above defined.
fSEc. 3. Seclrt rebates.--The secret payment or allowance of re-
bates, retfunds, commiissionsi, credits, or unearned discounts, whether
in the form of mnoney or otherwise, or the secret extension to certain
purchasers of special services, or privileges not extended to all pur-
chasers on like terms and conditions.
SEC. --1. CONSi~lj)l, nzen8.--NO manufacturer of Mlachine Knives shall
carry this product in stock anywhere in the United States on con-
signment except in branch houses of his owrn or w~ith his own agent
and who shall be listed with the Secretary~ of the Code Authority.
S;EC. 5. Guar'antee.--No mannufacturer shall replace or make al-
lowances on any machine knives because of complaint against the
quality of same on the part of the consumer, except after full exami-
nationr of s~aid knives by the manufacturer pl~roducingr ---, them, and then
only whlen th~e manufacturer findls that thle comnplaint is based on
fair andl reasonable grounds. Cllaimls entered for faulty workmain-
ship) or mlaterial which are not reported within a reasonable time
and uit~il after the product has been largely consumed should not
be allowed, but if any allowance is miadle it shall be upon the basis
of the amount, used.
SEc. 6. FI'(C: SOF'ZIfC.--NO IlRdIUfnadurer Shall render to any pur-
chaser of any~ products, in or in connection with the sale of such
productt, any unusual service or packing, unless fair compensation
for such service or packing shall be paid by such pur~chaser.
SEC. 1.. SP/Ml;?, co,,i l.788/Ol.--NO malnullfacturer shnll gr~ant. either
a selling commission or dealer's discount to any concern or individual
other thann an established manchine-knife dealer, jobber, salesman, or
machine builder. An establishedt dealer, jobber, or salesman is one
whose business it is to buy~ andl resell, or to sell, for a salary or com-
miission, to buyers of manchine knives; such dealers, jobbers, or sales-
mern not being controlled or paid for their puirchasing efforts by
S~EC. $. 3l/rdak~-1711r/-f ~d- orider:.--No m anu factuIIrer sh all m akle
knives; of special design to be car~riedd in stock until called for by
the customer, unless the customers places writh thie malllnucturerr a,
bonia file orderci Epecifying the nauinber of knives andi delivery date,
w:hichl deliver1y dalte mul~st not~ eceedt~ ninlety' (',0) days~. Th po
-~b~l IsIOn ltl HOf plreventlf a Membe11r Of (118 Indlllstrg fj'rom miallufte-
tuTing anld cHPi1llyi a .stcc.k a1 retniiir-able ItInherCI of SpeC(ial knlives'
niot to exceed~ twecnty (20) percent in ecesc!sl of the numiber ordered~~
for the purp~lose~ of reducuing the pr~oduc~tionl cost. of suhlC1 knlive.C.
SEc. 9. Anyg discr1iminationl betweenrl purIIcha;Se'S by! thef anle of any
article having n p-ub~lishedt In-lee, at anyI~ priic~e below, the selller s
pu rblishedl price by means~ of liirect or indlirecct price enuesscr~io ns, or
by mean1Is of any1 pr1ivilege not etended(.l'( to purchasers~'1' ge'I~lnellyT.
SwEC. 10). W\ithh~ohling fr~omi or iniseriting in an invice,irC sfl~ltaturnS
whlichi makle thec inv\oice a, false recor~ld," whc-,lly or in pairrt. of the
transne:rctio n r'ep~resented~ on ther face thrieo~cf.
See. 11. The sale~ or offe~~~rin for n:1I, of any1! p~roducl~t of thle
11nClilllP Iliife Intlldsr? InIfflI ;Illly foi'll Of glurlikellf' to the pur-
aga~inst thle dcl~~ine inl thie Iriiice of saidc' product.
SCEI'. 12.. llV (10YI'ilfOTI fl0001 the! sf;andll'cis HN, 80 fOrth in (11ls
Article XIII. or fr~om any aniendmell!Cnts theret(\o, hv' any lemberr of
thle Indusltry erither~l dilrc.t'ly or indirectly thro~u -h his nont,~'lh shall
be cons-ilered~~ an- u~nfaiir mcthodl of cmciipe~tition. and a violaitioni of
this Corde by\ sulch1 memlber..
A scr is -a-: XIV--ExrOn'r E.11.-:~
Thle .r~ovisionsl, of th~is Coale ('oncernl~lingf 5ales shall no~t apply to
dliree~t. exporlt fsalte of any product. The term-n export shall in-
0111(10 Sllpinenrr t s toi faingly cou-nntr~is arid to tlil tres-a-it oric s rinra
p~o~Se sions~ of thep Un~itedl Staltes.
tith compel~rtitionl inl domelt~~il markets of impor~tedl Mach~linel Knift~
aInd~ Allied~ Steel Products and if it shanll find that such produllcts-
are beingF impri.cited~ into the U~nitedl Si~tat in substantlliali splantllites
OF' Illerethliily l'tlo tO Ido~llies~tic' p~(routll'ion andllC~11 1~1 fI'll tric- or
u ~lde SEICLl C(~11it itlollS RS tO Itnelhl r Iie fet~tlti \e or se Ii i ll'--1 to(0~~ ellagrr
thle mintenance1I't of this CodeP, it shall make~ (nmplal~~int to thel Pres-
ident purisu~ant to, the p~rrovisions of Sc-ctioni :3 (e) of thec A\ct and11
p~etitionl for' suitable~ restrictions onI the importaltion" of ,cuch Machl'line~
K~nives~ amI Allied~ S~teel P1croduc~ts.
Such.1 of the~ 1Irovi~sions~ of thlis Coderl. as aRI not requllired'~ by the
SXntiolnal Indusitrialu Reconvery Ac~t, to be iniitctl ded herein. mal~y. with
the approval of the Admllin istrIa torl, be modC~ified~ or clliminatedLI as
chlangred cil.rllumstancet s or exp~eriece may~5 inticatc. This Codell i~s
inltendedl to, b.e n basic c~odet and1( Istud\ of th~e tradce prac;~'j~tie of thle
Machine Knrife Indiustry wMill be conrtinlued by the Codle Authornity
of the M~achine Knife Industry with the intention of submitting
from time to timne, to the Admninistrator for approval, additions to,
or revisions of this Code applicable to all employers in the Mla-
chine Knife Industry.
A~rrCLE VIIGENERAL PROVISIONS
SECTION 1. UPuSUant tO SUISectiOn (b) of Section 10 of the Na-
tional Industrial Recovery Act, the President of the United States
miay fromn time to time cancel or modify any order, approval, license,
rule, or regulation issued under Title I of said Act.
SEc. 9. Effective date.-T'his Clode shall become effective on thle
tenth day after its approval by the President.
Approved Code No. 263.
Registry No. 1331-1-4)1.