NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CONCRETE MIXER INDUSTRY
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON AUGUST 1, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 347-Supplement No. 37
Registry No. 1399-52
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 347-Supplement No. 37
SUPPLEMENTARY CODE OF FAIR COMPETITION
CONCRETE MIXER INDUSTRY
As Approved on August 1, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CON-
CRETE MIXER INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
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 Supple-
mental Code of Fair Competition for the Concrete Mixer Subdivi-
sion of Machinery and Allied Products Industry, and a hearing
having been duly held thereon and the annexed report on said Sup-
lemental 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, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Supplemental Code complies in
all respects with the pertinent provisions and will promote the pol-
icy and purpose of said Title of said Act; and do hereby order that
said Supplemental Code of Fair Competition be and it is hereby
approved, subject to the following conditions:
(1) That the provisions of Article VIII, Sections (a) and (b),
insofar as they prescribe a waiting period between the filing with
the Code Authority (or such agency as may be designated in the
Supplemental Code) and the effective date of price lists, as orig-
inally filed and/or revised price lists or revised terms and conditions
of sale, be and they hereby are stayed pending my further order;
(2) That the provisions of Article IX, Sections 8, 11-A and 12
be and they hereby are stayed pending my further order.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
BARTON W. MURRAY,
Division A dninistrator.
77615-- 1044-12----34---1 (1)
REPORT TO THE PRESIDENT
The Wl'hite House.
SIR: This is a report on the Supplemental Code of Fair Competi-
tion for the Concrete Mixer Subdivision of Machinery and Allied
Products Industry, a public hearing on which was held in Washing-
ton, D.C., on December 21, 1933. The hearing was conducted in
full accordance with the provisions of Title I of the National Indus-
trial Recovery Act.
The Concrete Mixer Subdivision, being truly representative of the
manufacturers of the products defined in Article II of the Supple-
mental Code, has elected to formulate and submit a Supplemental
Code of Fair Competition as provided in the second paragraph of
Article I of the Code of Fair Competition for the Machinery and
Allied Products Industry, approved by you on the seventeenth day of
This Subdivision includes the manufacture for sale of concrete
misers of the building mixer, paving mixer, truck mixer and agitator
type, and parts thereof.
The Annual sales of this Subdivision for the years 1928 to 1933
were as follows: 1928, $11,968,000; 1929, $11,686,000; 1930, $8,583,000;
1931, $6,043,000; 1932, $2,345,000.
Annual sales in this Subdivision declined steadily from $11,686,-
000 in 1929 to a minimum of $2,345,000 in 1932, or 80 per cent. Esti-
mated sales for the first seven months in 1933 were placed at $741,000,
and on this basis are not likely to equal the 1932 level.
As of June 15, 1929, the Subdivision employed 1,697 persons in-
cluding office employees; as of October 15, 1933; total employment
had declined to 337 persons, or 80 per cent below the previous period.
Factory employment, as of June 15, 1929, declined from 1,404 to
266 workers as of June 15, 1933, or 81 per cent. Thereafter employ-
ment increased again to approximately 273 workers, or 3 per cent
as of October 15, 1933, the latest date for which figures are available.
Since 1929, man-hours decreased from 67,673 to 6,727, or 90 per
cent. The latest available figure on factory employment for the
fourth quarter in 1933, is 273 workers and assuming that the Depart-
ment of Labor figures are representative of the hours worked in this
Subdivision, total estimated man-hours have increased 36 per cent
since October 15, 1933. Based on man-hour requirements as of the
latest date reported, the 40-hour week provision in the Code will
cause little further employment in this Subdivision in 1934 until
production increases. If it is assumed that 20,000 man-hours are
representative of the volume of increased production activity and a
reasonable measure of man-hour requirements in a more normal
period, the adoption of the 40-hour week would require a force of
approximately 500 factory employees, or 35.6 per cent of the June
15, 1929 level.
The probability that all employees in this Subdivision will be
working to the limit of the maximum 40-hour provision is remote;
consequently, the average work week is likely to be shorter, say 36
assumedeffective hours, and employment correspondingly greater;
viz., 556 workers will be required to produce the 20,000 man-hour
The minimum wage provisions for the Subdivisions which are
operating under the Code of the Machinery and Allied Products
Industry, are based on a flat minimum hourly rate of 32 cents per
hour for the South and the following city population differentials
for all other sections of the United States: Over 50,000 population,
40 cents per hour; 10,000 to 50,000 population, 38 cents per hour;
10,000 population and under, 36 cents per hour.
In addition to the minimum wage rates shown above, the Code
provides that women engaged in substantially the same work as men,
shall receive the same rate of pay as such men employees; that the
minimum wage for women employees engaged in plant operation
shall be not less than 87.5 per cent of the proper rate for the locality
in which employed as specified; and that the minimum in the South
shall be not less than 32 cents per hour.
Estimated number of factory workers receiving less than designated hourly rates
Distribution of factory
workers receiving less
than the minimum re-
gardless of location
Proposed minimum hourly rates gardless of location
40 cents other U.S.)------------------------------------- 19.9 53
88 cents other U.S.)-.......--- ...-...------------- --.--- 15.8 42
36 cents other U.S.)-- ----------------- ------------- ----- -- 11.6 31
32 cents (South) ------------- ------------------ ------------- 4.6 12
Based on the distribution as of June 15, 1933 and on the specified
percentages of the number of factory workers receiving less than
the designated rates shown in the above table, the adoption of the
proposed minimum rates will probably cause an increase in factory
payrolls. The estimated increase as of June 15, 1933, regardless of
location of the workers, will probably, under the most favorable
conditions, not exceed about 2 per cent assuming only upward
adjustment in the brackets below the 40-cent minimum and no
change in man-hour requirements.
RESUME OF SUPPLEMENTAL CODE
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment pro-
visions of the Code of Fair Competition for the Machinery and
Allied Products Industry.
Article IV provides for the adoption of Articles II, VI, VIII,
and IX of the Code of Fair Competition for the Machinery and
Allied Products Industry.
Article V provides for the establishment of a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and/or estimating.
Article VII provides that no products of the Subdivision shall be
sold or offered for sale below a reasonable cost when the Code Author-
ity determines that an emergency exists within the Subdivision.
Article VIII provides for methods of setting up, revising and filing
price lists and discount sheets and terms of sale and payment.
Article IX sets forth trade practices for the Subdivision.
Article X states that no provision of this Supplemental Code
relating to pricing and marketing shall apply to export sales.
Article XI provides that this Supplemental Code and all the pro-
visions thereof are expressly made subject to the right of the Presi-
dent, in accordance with Subsection (b) of Section 10 of the Act,
from time to time to cancel or modify any order, approval, license,
rule or regulation issued under said Act. Provision is also made
that modifications may be submitted by the Code Authority to the
Administrator for approval.
Article XII. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or monopolistic practices, or to
eliminate, oppress, or discriminate against small enterprises.
Article XIII states the effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to me
on said Supplemental 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 the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organi-
zation of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000
employees; and is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
applicant association is an industrial association truly representative
of the aforesaid Subdivision- and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate or oppress small enterprises and will not operate to discriminate
(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
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication
are stayed as stated in the Order.
HUGH S. JOHNSON,
AUGUST 1, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE CONCRETE MIXER INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial Re-
covery Act the following provisions are established as a Supple-
mental Code of Fair Competition for the Concrete Mixer Subdi-
vision of the Machinery and Allied Products Industry, and together
with the Code of Fair Competition for the Machinery and Allied
Products Industry, to which it is a Supplement, shall be the stand-
ard of fair competition for this Subdivision, and shall be binding
on each employer therein.
"Applicant" means the Concrete Mixer Manufacturers Insti-
tute, all members of which are engaged in the manufacture for sale
of the products of the Concrete Mixer Subdivision of the Machinery
and Allied Products Industry.
Industry means the Machinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the
President March 17, 1934, and as such definition may from time
to time be amended.
"Subdivision" means this Concrete Mixer Subdivision of the
Machinery and Allied Products Industry as defined and set forth
in Paragraph (6) of Article II of the Code of Fair Competition for
the Machiner and Allied Products Industry as follows:
"Concrete Mixer Subdivision means the manufacture for sale
of concrete mixers of the building mixer, paving mixer, truck
mixer, and agitator type, and parts thereof, and includes all those
engaged in such manufacture for sale."
"Code" means the Code of Fair Competition for the Machinery
and Allied Products Industry, as approved by the President, and
as from time to time amended.
"Person" means a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
"Employer" means any person engaged in this Subdivision of
the Industry, either on his own behalf or as an employer of labor.
"Employee" means any one who is employed in the Subdivision
by any such employer.
"The Act" means Title I of the National Industrial Recovery
The President" means the President of the United States.
The Admin-isrator" means the Administrator for Industrial
Basic Code Authority means the Code Authority for the Ma-
chinery and Allied Products Industry as constituted by the Code.
Code Authority" means the Code Authority constituted for
this Subdivision as provided by the Code and by this Supplemental
Group Code Authority" means the Code Authority for any
group or classification of products within this Subdivision, con-
stituted under the authority of Article V of this Supplemental
"Publish" means to make available to the public.
ARTICLE III-EMPLOYMENT PROVISIONS
The following Articles of the Code, viz: Article III, Working
Hours"; Article IV, "Wages"; and Article V, "General Labor
Provisions ", are hereby made a part of this Supplemental Code,
with the same effect as if they were written into this Supplemental
ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Code, viz: Article II, "Definitions ";
Article VI, "Administration ", to the extent that they shall be ap-
plicable to this Supplemental Code as such or as it may hereafter be
administered as an autonomous Code: Article VIII, "Modifications
and Termination "; Article IX, "Withdrawal "; are hereby made a
part of this Supplemental Code with the same effect as if they were
written into this Supplemental Code.
ARTICLE V-ORGANIZATION AND ADMINISTRATION
A Code Authority is hereby constituted to effectuate the adminis-
tration of this Supplemental Code.
1. (a) During the period not to exceed sixty days following the
effective date of this Supplemental Code, the Executive Committee
of the Concrete Mixer Manufacturers Institute shall constitute a tem-
porary Code Authority. This Committee shall consist of five mem-
bers, and the Administrator, in his discretion, may appoint one
additional member (without vote and without expense to the Sub-
To permit representation of employers who are not members of
the Applicant, the latter shall, within sixty days after this Supple-
mental Code shall become effective, set up a permanent Code Au-
thority to succeed the temporary Code Authority. Such permanent
Code Authority shall be elected at a meeting of employers called by
the Temporary Code Authority. Ten (10) days' notice of such
meeting shall be sent by registered mail to ll known employers in
this Subvision and the notice shall specifically state that voting at
the meeting may be in person or by proxy. This permanent Code
Authority shall consist of five members, and in addition thereto, the
Administrator's appointee (if any) as referred to in the paragraph
Any vacancy on the Code Authority due to death, resignation, or
because a member thereof has ceased to be connected with the Sub-
division, shall be filled at a meeting of employers called by the
Code Authority on at least ten days' notice by registered mail sent
to all employers in this Subdivision, and by a vote similar to the
vote by which the retired member was originally selected.
The members of the Code Authority shall be elected by a vote of
the employers, voted by person or proxy at such a meeting, as
Three members shall be elected by a simple majority vote, one
of whom shall be chosen from those companies who manufacture
building mixers, one of whom shall be chosen from those companies
who manufacture paving mixers, and one of whom shall be chosen
from companies manufacturing truck or agitator mixers.
Two members shall be elected from the membership at large by
a 51% vote weighed on the basis of one vote for the first $250,000.00
sales of products of the Industry and a second vote for sales in
excess of this amount, made in the two preceding calendar years
as reported to the Secretary of the Applicant, but each employer
shall have at least one vote.
Members of the Code Authority shall hold office for one year
or until their successors are elected and qualified.
Any employer in the Subdivision shall be eligible for membership
(b) Aggregations of employers having a common interest and
common problems may be grouped by Code Authority for adminis-
trative purposes into various groups, or product classifications.
In each group or product classification there may be a Group
Code Authority approved, or appointed, by Code Authority. If
formal complaint is made to Code Authority that provisions of
this Supplemental Code have been violated by any employer, the
Code Authority or proper Group Code Authority may cause such
investigation to be made, to the extent permitted by the Act, as
may be deemed necessary, and if the investigation has been made
by Group Code Authority it. shall report the results of such investi-
gation to Code Authority for appropriate action.
The Code Authority shall, to the extent permitted by the Act,
have the right to investigate and analyze any transaction coming
under the scope of this Supplemental Code, on which any unfair
competition is alleged, to show evidence of guilt or innocence of
the employer so charged.
2. It being found necessary in order to support the Administration
of this Supplemental Code and to maintain the standards of Fair
Competition established hereunder and to effectuate the policy of the
Act, the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out.
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Supplemental Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses tor the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by employers of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable con-
tribution as above set forth by all employers of the Subdivision, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
3. Each employer of the Subdivision shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Au-
thority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only employers of the Subdivision complying with the Supple-
mental Code and contributing to the expenses of its administration
as hereinabove provided, unless duly excepted from making such
contributions, shall be entitled to participate in the selection of mem-
bers of the Code Authority or to receive the benefits of any of its
voluntary activities or to make use of any emblem or insignia of the
National Recovery Administration.
4. The Code Authority shall neither incur nor pay any obligation
in excess of the amount thereof as estimated in its approved budget,
except upon approval of the Administrator; and no subsequent
budget shall contain any deficiency item for expenditures in excess
of prior budget estimates except those which the Administrator shall
have so approved.
5. In order that the Code Authority shall at all times be truly
representative of the Subdivision and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative 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 Code
Authority, or any Group Code Authority.
ARTICLE VI-ACCOUNTING AND COSTING
Code Authority shall cause to be formulated an accounting system
and methods of cost finding and/or estimating capable of use by all
employers of the Subdivision. After such system and methods have
been formulated, full details concerning them shall be made available
to all employers. Thereafter all employers shall determine and/or
estimate costs in accordance with the principles of such methods.
ARTICLE VII-SELLING BELOw REASONABLE COST
SECTION 1. When the Code Authority determines that an emer-
gency exists in this Subdivision and that the cause thereof is destruc-
tive price-cutting such as to render ineffective or seriously endanger
the maintenance of the provisions of this Supplemental Code, the
Code Authority may cause to be determined the lowest reasonable
cost of the products of this Subdivision, such determination to be
subject to such notice and hearing as the Administrator may require.
The Administrator may approve, disapprove, or modify the deter-
mination. Thereafter, during the period of the emergency, it shall
be an unfair trade practice for any employer of the Subdivision to
sell or offer to sell any products of the Subdivision 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 Authority,
upon its own initiative or upon the request of any interested party,
shall cause the determination to be reviewed.
SECTION 2. The foregoing Section (1) shall not apply to (a)
dropped lines, or (b) seconds, or (c) inventories which must be con-
verted into cash to meet emergency needs, all of which may be dis-
posed of by any employer at any price and on any terms or condi-
tions, but only if such employer, not less than two weeks before such
proposed disposal, has filed with Code Authority, a statement in
writing setting forth the facts of, and reasons for, such proposed
disposal and the price and terms and conditions of sale, and Code
Authority has not, (with the approval of the Administrator), before
the termination of such two week period, in writing, disapproved
the proposed disposal. Notice of such disposal, if not disapproved,
shall be sent immediately to all employers manufacturing products
of equivalent design, character, quality or specifications, who may
sell such products at prices and on terms and conditions as favorable
as those stipulated in the proposed disposal, when meeting the com-
petition of such proposed disposal.
SECTION 3. The foregoing Section (1) shall not apply to a sale
made in order to meet competition on products manufactured out-
side the United States. For such disposal, any employer may sell,
at prices and on terms and conditions as favorable as those of the
competing foreign product., but only if he has first reported to the
Code Authority his intention so to sell, and the facts as to the com-
petition which justifies such action.
ARTICLE VIII--PICE LISTS
(a) If and when the Code Authority determines that in any group
of the Subdivision it has been the generally recognized practice
to sell a specified product on the basis of net price lists, or price lists
with discount sheets, and fixed terms of sale and payment, each
manufacturer of such product shall, within ten (10) days after
notice of such determination, file with Code Authority a net price
list, or a price list with discount sheet, as the case may be, individually
prepared by him showing his current prices, or prices and discounts,
and terms of sale and payment, and the Code Authority shall im-
mediately publish and send copies thereof to all known manufac-
turers of such specified products who are cooperating under this
Code as described in Article V, Section (a).
Revised price lists and, or discount sheets and/or terms of sale
and payment may be filed from time to time thereafter with the
Code Authority by any manufacturer of such product, to become
operative upon the date specified therein, but such revised price
lists and/or discount sheets and.'or terms of sale and payment shall
be filed with the Code Authority ten (10) days in advance of the
operative date. Copies thereof, with notice of the operative date
specified, shall be immediately published and sent to all known
manufacturers of such product, any of whom may file, if he so
desires, revisions of his price lists and/or discount sheets and/or
terms of sale and payment, which shall become effective upon the
date when the revised price lists and/or discount sheets and/or
terms of sale and payment first filed shall go into effect.'
(b) If and when the Code Authority shall determine that in any
group of the Subdivision not now selling its products on the basis of
price lists, with or without discount sheets, with terms of sale and
payment, the distribution or marketing conditions in the group are
the same as, or similar to, the distribution or marketing conditions in
a group where the use of price lists, with or without discount sheets,
and terms of sale and payment is well recognized, and that a system
of selling on net price lists or price lists and discount sheets with
terms of sale and payment should be put into effect in such group,
then each manufacturer of the product or products of such group
shall within twenty (20) days after notice of such determination,
file with the Code Authority net price lists or price lists and discount
sheets, with terms of sale and payment, showing his prices and dis-
counts and terms of sale and payment, and such price lists and/or
discount sheets and/or terms of sale and payment may be thereafter
revised in the manner hereinbefore provided; and such methods of
pricing and revisions thereof shall be "published and sent" as de-
scribed in Article VIII (a). Provided that Code Authority shall
make no determination to place any product of the Subdivision (not
now on a price list basis) on a price list basis, as provided in this
paragraph (b) of Article VIII unless affirmative consent to such
determination is given by a. 662% vote of the employers who are. co-
operating in this Code and who are at that time engaged in manufac-
turing such product. The eligibility requirements, method, and
effect of such voting shall be the same as is provided by Article V.
No employer shall sell directly or indirectly by any means what-
soever, any product of the Subdivision covered by provisions of this
Article VIII at. a different price, or on more favorable terms of sale
and payment, than those provided in his own current net price lists
or price lists and discount sheets, and terms of sale and payment.1
ARTICLE IX-TRADE PRACTICES
Definition of newi and ii'scd Products.-In this Supplemental
Code, the phrase new product, shall mean any product which has
not previously been sold and placed in the possession of the pur-
chaser and which product, has not been used, exclusive of discontinued
models and repair parts. In this Supplemental Code, the phrase
" used product shall mean a product which has previously been
used by a purchaser, or renter, or used as a demonstrator prior to
the date of this Supplemental Code, or a discontinued model.
SECTION 1. Published Prices.-Published prices shall include ship-
ping weights and all prices shall be f.o.b. employer's works, subject
to the provisions of Section 9.
SSee paragraph 2 (1) of order approving this Code.
SECTION 2. Firm Orders Requ.ired.-New products shall be sold
only under firm sales contracts or firm purchase orders, and such
contracts or orders shall provide for shipment within ninety (90)
days of the date of contract or order, with the exception of orders or
contracts for shipment of pavers, truck misers or agitators before
April 15th of any year when taken between the preceding October
15th and January 15th, and accompanied by a cash deposit of not
less than 10% of the price of the product so to be shipped.
SECTION 3. Payments in Cash.-Terms of payment shall specify
that all payments on account, of the purchase price of a new product
shall be made when due in cash or negotiable check.
SECTION 4. Down Payment in Deferred-Pa/l!/mr t Sales.-In the
case of a sale to the user of a new product on deferred payment terms,
the contract of sale shall call for a cash down payment of not less
than 25% of the total f.o.b. sales price either before the time of
shipment or by sight draft with bill of laying attached.
SECTION 5. Installments in Deferred-Paymi nt Sarles.--In the case
of a sale to the user of a new product on deferred payment terms,
the contract of sale shall require that the unpaid balance of the
purchase price be payable in equal installments due no less frequently
than monthly, the first installment to be payable in not more than
thirty (30) days from the date of shipment, the last installment
to be payable in not more than nine (9) months from date of ship-
ment in respect to sales of paving mixers, truck mixers and agitators,
and four (4) months from the date of shipment in regard to sales
of building mixers; each installment shall be evidenced by a note
bearing interest at not less than the rate of six per cent (69c) per
annum unless the State law governing the contract specifies a lower
maximum rate of interest from the date of shipment.
SEcnTON 6. Cash Discount.-Cash discount terms on sales of new
products shall not exceed five percent (5%7) for cash within ten (10)
days after shipment, or sight draft against bill of lading. Cash
discounts shall be figured upon the f.o.b factory price.
SECTION 7. Cash Sales.-No employer shall make sales of new
products on a cash basis, where no cash discount is involved, unless
the contract of sale requires that full payment in cash be made by
the purchaser within thirty-five (35) days from the date of ship-
SECTION 8. Guarantees.-No employer shall guarantee any product
except against defective material and workmanship, and no guar-
antee on any product shall extend over a period exceeding six (6)
months from date of shipment of such product.2
SECTION 9. Governmental Contracts.-In view of the legal and
other requirements of Governmental bodies in awarding contracts
for the purchase of machinery by such bodies, and in order that
members of the Subdivision may be in a position to bid fairly on
such contracts without violating the applicable provisions of this
Supplemental Code, any employer may quote a delivered price to
the Federal Government, or any State, County, or Municipal Gov-
ernment, on any product of the Subdivision, which shall be not less
than the lowest delivered price for any competing product of the
same size and specification. The term delivered price as used
See paragraph 2 (2) of order approving this Code.
herein shall mean the published price of the competing product plus
actual transportation charges on such product from its factory to
point of delivery; provided further that any employer may quote,
under the circumstances described hereinabove, cash discount terms
from date of acceptance at destination.
SECTION 10. Repairs and Replacement Parts.-So long as the
maker (or his successor in business) of any product of the Subdi-
vision bearing the maker's name or trademark, which has required
special design, research or development expense, continues to make
and supply such spare, repair and replacement parts therefore, it
shall be an unfair trade practice for any other employer to manu-
facture any repair parts for such product of the Subdivision unless
the name of such other person manufacturing such repair part shall
be plainly marked on the part (or, if this be impracticable, on the
package or tag) so that the ultimate user may be clearly informed
that such repair part was not made by the original miiiiker' (or suc-
cessor to such maker) of the product of the Subdivision for which
said repair part is manufactured.
SECTION 11. Fuit/fer Unfair Trade Practices.-Ench of the fol-
lowing practices is prohibited as constituting unfair competition:
A. Rentals.-The renting of any new product, with the excep-
tion of building mixers up to and including the 10-S size, which
may be rented, provided that no rental paid on such products shall
be applied against the purchase price of such products; provided
further that the renting of truck mixers is not prohibited where sold
under a lease form of contract where full list price is paid and
where title to the equipment at no time passes to the customer; and
provided further, however, that this paragraph shall not apply to
the first installation of a new product of an experimental nature.
This provision shall not prevent the selling of products of the Sub-
division on bailment leases in those States where such transactions
are legally recognized.3
B. Trials and Demonstration..--Selling any new product subject
to acceptance after a trial or demonstration on the purchaser's job,
provided, however, that in any case of the first new product of any
distinctly new type or size, with new model designation, if no ma-
chine of the same type and size has previously been sold, or in any
case where a machine may be sold to be employed for a distinctly
recognized new use, any employer may include in the contract of sale
a provision permitting recision of the contract by the customer within
ninety (90) days from date of shipment.
C. Tradc-itn..-Taking or purchasing any used machine or at-
tachment, used equipment or any other property, in trade on the
purchase price of a new product, or directly or indirectly making
any allowance thereon, or granting credit therefore.
D. Lump Sum Bidding and Contingent Selling.-The sale of any
product upon other than a unit price basis. This shall not prohibit
the granting of quantity discounts in accordance with filed price
The making of any contract for the furnishing of any product
contingent upon the sale or purchase of any other thing.
B See paragraph 2 (2) of order approving this Code.
E. Dihcontinucd or Non.-Currcnt Model Machines.-The sale or
offering for sale of any discontinued or non-current model product
as a new model or current machine; provided further that when a
discontinued or non-current model machine is offered for sale, the
quotation to the prospective purchaser shall show, in writing, the
age of the discontinued or non-current model product, and the serial
number and price thereof.
F. Secret Rebates.-No employer shall secretly offer or make any
payment or allowance of a rebate, refund, commission, credit, un-
earned discount or excess allowance, whether in the form of money
or otherwise, nor shall an employer of the Subdivision secretly offer
or extend to any customer any special service or privilege not ex-
tended to all customers of the same class, for the purpose of influenc-
ing a sale.
G. Bribing Employees.-No employer shall give, permit to be
given, or offer to give, anything of value for the purpose of influenc-
ing or rewarding the action of any employee, agent, or representa-
tive of another in relation to the business of the employer of such
employee, the principal of such or the represented party, without
the knowledge of such employer, principal or party. This provision
shall not be 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.
H. Inaccurate Advertising.-No employer shall publish advertis-
ing (whether printed, radio, display or of any other nature) which is
misleading or inaccurate in any material particular, nor shall any
employer in any way misrepresent any goods (including but with-
out limitation its use, trademark, grade, quality, quantity, origin,
size, substance, character, nature, finish, material, content, or prepa-
ration) or credit terms, values, policies, services, or the nature or
form of the business conducted.
I. Patent Infringenent.-The publishing or circularizing of any
threat of suit for infringement of patent or trademark, or of any
other legal proceedings, not in good faith, which would tend to harass
competitors or intimidate their customers.
J. Detailed Drawings.-The furnishing to any purchaser, and/or
his agent, directly or indirectly of detailed drawings of the products
of this Subdivision without filing a statement of such proposed
transaction with the Code Authority which shall approve or with
the approval of the Administrator disapprove the transaction within
ten (10) days by written notice to the employer.
K. Destructive Price Cutting.-It shall be an unfair trade prac-
tice for any employer to engage in destructive price-cutting.
SECTION 12.-Sales Other Than From Factory Stock.--Where a
building mixer is sold from other than factory stock, the price to
the user shall not be less than the f.o.b. factory price, plus a freight
charge that shall not be less than the carload rate of freight from
the factory to the job, and plus a charge to cover warehousing and
handling which shall be a percentage of the published selling price,
said percentage to be determined by the Code Authority and approved
by the Administrator.4
ASee paragraph 2 (2) of order approving this Code.
ARTICLE X-SALES FOR Exrorr
The provisions of this Supplemental Code concerning pricing and
marketing (Articles VII, VIII and IX) shall not apply to direct
export sales of any product, or to any product destined ultimately
for export. The term export" shall include all shipments to all
places without the several states of the United States and the Dis-
trict of Columbia; provided, however, that no shipment to any terri-
tory or possession of the United States shall be considered an export
when any employer is engaged in the Industry in such territory or
(a) As provided by Section 10 (b) of the Act, the President
may from time to time cancel or modify any order, approval,
license, rule or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions, or supplements of
this Supplemental Code, proposed by Code Authority, and approved
by a 6623% of the employers shall be in full force and effect upon
approval by the President. The eligibility requirements, method,
and effect of such voting shall be the same as provided by Article V.
Applicant imposes and shall impose no inequitable restrictions
on membership therein. The Supplemental Code presented by it
is not designed to permit monopoly, and shall not be so construed
or applied as to oppress or eliminate small enterprises or discrim-
inate against them, and is designed to effectuate the policy of the
ARTICLE XIII-EFFECIv DATE
This Supplemental Code shall become effective and binding on all
persons engaged in the Subdivision on the eleventh day after its
approval by the President.
Approved Code No. 347-Supplement No. 87.
Registry No. 1399-52.
UNIVERSITY OF FLORIDA
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