sued Code No. 347-Supplement No. 6 Registry No. 1399-31
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON MAY 14, 1934
WE DO OUR PART
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owed Code No. 347-Supplement No. 6
Registry No. 1399-31
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Approved Code No. 347-Supplement No. 6
SUPPLEMENTARY CODE OF FAIR COMPETITION
WOODWORKING MACHINERY INDUSTRY
Approved on May 14, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WOODWORKING
A DIVISION OF THE MACHINERY AND ALLIED PRODUCrTS INDUSTRY
An application having been duly made pursuant to and in
full compliance with the provisions of Title I of the National In-
dustrial Recovery Act, approved June 16, 1933, for approval of a
Supplemental Code of Fair Competition for the Woodworking
Machinery Subdivision of Machinery and Allied Products Industry,
and hearings having been duly held thereon and the annexed report
on said Supplemental 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
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Supplemental Code complies
in all respects with the pertinent provisions and will promote the
policy and purposes 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 Association of Manufacturers of Woodworking
Machinery shall amend its Constitution and By-Laws to the satis-
faction of the Administrator within the time set forth in the Order
of the Administrator, dated April 26, 1934, which order extended
the original period of thirty (30) days set forth in the Executive
Order of March 17, 1934, approving the Basic Code of Fair Compe-
tition for the Machinery and Allied Products Industry.
2. That the provisions of Article VIII, Section (a) insofar as they
prescribe a waiting period between the filing with the Code Au-
thority (or such agency as may be designated in the Supplemental
Code) and the effective date of price lists, as originally filed and/or
revised price lists or revised terms and conditions of sale, be and
they hereby are stayed pending my further order.
3. That the provisions of Article VIII, Section (e) be and they
hereby are stayed pending the submission of satisfactory evidence
concerning distribution of the products of the Subdivision to the
HunH S. JOHNSON,
Administrator for Industrial Recovery.
A. R. GLANCY,
Division Adm hiistrator.
WASHINGTON, D. C.,
May 14, 1934.
REPORT TO THE PRESIDENT
The White House.
Srn: This report relates to the Supplemental Code of Fair Compe-
tition for the Woodworking Machinery Subdivision of Machinery
and Allied Products Industry as proposed by the Association of
Manufacturers of Woodworking Machinery.
A public hearing was held in Washington, D.C. on December 6,
1933 and reconvened on December 21, 1933. The public hearings
were conducted in accordance with the provisions of Title I of the
National Industrial Recovery Act and all persons were given full
opportunity to be heard.
The Woodworking Machinery Subdivision, being truly represent-
ative of the manufacturers of the.products defined in Article II of
the Supplemental Code, has elected to formulate and submit a
Supplemental Code of Fair Competition as provided in the second
paragraph of Article I in the Code of Fair Competition for the
Machinery and Allied Products Industry, approved by you on the
seventeenth day of March, 1934.
The Subdivision as defined in the Supplemental Code includes all
those engaged in the manufacture for sale of woodworking machin-
ery and accessories and parts thereof. However, the manufacture
of sawmill machinery is excluded, as such machinery is manufac-
tured within another subdivision.
Annual sales in the Subdivision declined from $20,200,000 in 1929
to $3,500,000 in 1932, or 82.7 per cent. No estimate was made by the
Subdivision of the value of sales for the year 1933. Aggregate in-
vested capital has shown a 33 per cent decline since 1929, while pro-
duction capacity has remained constant.
Estimates showing employment for the entire Subdivision submit-
ted in the code application, indicate that employment declined from.
3,900 wage earners in 1929 to 1,000 in 1933, or 74.4 per cent.
Average hours per week were reported to be 51.5 in June 1929;
42.1 in June 1933; and 36.9 in October, 1933. In October, 1933 the
average hours were 28.4 per cent less than the June, 1929 average.
The effect of the 40-hour provision with production at more normal
levels may be estimated on a basis of total man-hours per week in
1931 by dividing the number of hours prescribed in the code. After
1929 man-hours declined steadily from 200,850 to a minimum of
31,500 in 1932, or approximately 84 per cent. Man-hours for 1933
have increased from 41,380 for the first six months to 53,030 for the
third quarter, or 28 per cent.
If it is assumed that the 68,220 man-hours for 1931 are repre-
sentative of the volume of production for that year, and a reason-
able measure of man-hour requirements in a more normal period,
the adoption of the 40-hour week would require a force of approxi-
mately 1,700 employees or 44 per cent of the 1929 working level.
Owing to the impossibility of all employees of the Subdivision
working the maximum 40-hours, the average work week will be
shorter, say 36 assumed effective hours, and employment correspond-
ingly greater; viz., 1,900 workers will be required to produce the
The minimum wage provisions proposed 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
Over 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 opera-
tions 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.
Distributions of the number of factory workers receiving classified
rates in the specified areas are not available. Consequently, it is
only possible to estimate the approximate number of factory workers
who will receive the benefit of the proposed minimum hourly rates,
regardless of location, on the basis of the number of factory workers
receiving less than the designated hourly rates as of June 15, 1933.
Estiinated number of factory workers receiving less than designated hourly
Distribution of factory
workers receiving leas
than the minimum re-
gardless of location
Proposed minimum hourly rates gardles of location
40 cats (other U.S.)..-...- ..- ................-..-.......................... 25.2 351
33 cents (other U S.)... ....- ...--.................. ..--- ...---. -----.... 20.6 287
36 cents (other U.S.) ..---..-..--.- ...- ..-- ..--- ..-- ..--- ..---- ...-......-- 14.0 US
32 cents (South) ...............---.. -..-.................................... 8.7 121
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 pro-
posed 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 3.5 per cent assuming only upward adjust-
ment in the brackets below the 40-cent minimum and no change in
RESUME OF SUPPLEMENTAL CODE
ARTrLE. I. Purposes.-States the purposes of the Supplemental
ARTicaLE I. Definitions.-Accurately defines specific terms ap-
plicable to the Subdivision as used in this Supplemental Code.
ARTICLE III. Employment Provisions.-Provides for the adoption
of the employment provisions of the National Industrial Recovery
Code of the Machinery and Allied Products Industry, as approved
by you on the seventeenth day of March, 1934, and as from time to
ARTICLE IV. Adoption of Other Provisions of the Code.-Pro-
vides for the adoption of Articles II, VI, VIII, and IX of the
National Industrial Recovery Code of the Machinery and Allied
Products Industry, in accordance with the conditions in this Article
governing their adoption.
ARTICLE V. Organization and Administration.-Provides for the
establishment of a Code Authority and defines its powers and duties.
ARTICLE VI. Accounting and Costing.-Provides for the establish-
ment of a uniform accounting system and method of cost finding
and/or estimating to be used by all employers in the Subdivision.
ARTICLE VII. Selling Below Reasonable Cost.-Provides that no
products of the Subdivision shall be sold or exchanged below a rea-
sonable cost when the Code Authority determines that an emergency
ARTICLE VIII. Price Lists.-Provides for methods of setting up,
revising and filing price lists and discount sheets and terms of sale
ARTICLE IX. Trade Practices.-Sets forth unfair methods of
ARTICLE X. Sales for Export.-No provisions of this Supplemental
Code relating to pricing and marketing shall apply to direct export
sales or to any product destined ultimately for export.
ARTICLE XI. Modifications.-This Supplemental Code and all pro-
visions thereof are made subject to the right of the President, 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
amendments, additions, revisions, or supplements, proposed by the
Code Authority, may be submitted from time to time for the
approval of the Administrator.
ARTICLE XII. Monopolies.-No provisions of this Supplemental
Code shall be so applied as to permit monopolies or monopolistic
practices, or to eliminate, oppress or discriminate against small
ARTICLE XIII. Effective Date.-This Supplemental Code shall
become effective on the eleventh day after its approval by the
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
Cude, provided that certain provisions relating to price publication
are stayed; that the Constitution and By-Laws of Applicant be
revised as stated in the Order; and that the provisions of Article
VIII, Section (e) be stayed until satisfactory evidence concerning
distribution of the products of the Subdivision is submitted to the
Hoon S. JOHNSON,
MAr 14, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WOODWORKING MACHINERY INDUSTRY
A DIVISION OF 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 for the Woodworking Machinery Subdivision of the
Machinery and Allied Products Industry, and together with the
National Industrial Recovery Code of Machinery and Allied Prod-
ucts Industry to which it is a Supplement shall be the standard of
fair competition for this subdivision, and shall be binding on each
"Applicant" means the Association of Manufacturers of Wood-
working Machinery, a trade organization, all members of which are
engaged in the manufacture for sale of the products of the Wood-
working Machinery Industry Subdivision of the Machinery and
Allied Products Industry, which organization is truly representa-
tive of this Subdivision.
Industry means the Machinery and Allied Products Industry,
as defined in its National Industrial Recovery Code as approved
by the President, March 17, 1934 and as such definition may from
time to time be amended.
Subdivision means this Woodworking Machinery subdivision
of the Machinery and Allied Products Industry as defined and set
forth in paragraph 39 of Article II of the National Industrial Re-
covery Code of the Machinery and Allied Products Industry as
Woodworking Machinery Subdivision" means the manufacture
for sale of Woodworking Machinery (exclusive of Sawmill
Machinery) accessories, and parts thereof, and includes all those
engaged in such manufacture for sale.
Code" means the National Industrial Recovery Code of the
Machinery and Allied Products Industry, as approved by the Presi-
dent, 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 this subdivision
by any such employer.
The Act menns Title I of the National Industrial Recovery Act.
The President means the President of the United States.
"The Administrator" 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 Code.
Group Code Authority" means the Code Authority for any
group or classification of products within this subdivision, consti-
tuted under the authority of Article V of this Supplemental Code.
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 made a part of this Supplemental Code, with the
same effect as if they were written into this Supplemental Code.
ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF THE 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 "Modifica-
tions and Termination "; and 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, except as herein
ARTICLE V-ORGANIZATION AND ADMINISTRATION '
(a) To administer, supervise and facilitate the performance of
the provisions of this Supplemental Code, there is hereby estab-
lished a Code Authority which shall consist of;
1. The Executive Committee of the Association of Manufac-
turers of Woodworking Machinery consisting of not less than five,
nor more than eight members.
'2. One additional member to be selected in any fair manner,
with the approval of the Administrator, by employers in this sub-
division, not members of the applicant, who are cooperating under
this code as described in Section (e) hereof, if so desired by such
3. The Administrator may at his discretion appoint one addi-
tional member without vote and without expense to this Sub-
(b) The Code Authority shall adopt rules and regulations for
its procedure and employ such personnel as it may deem necessary.
(c) Any employer in this subdivision shall be entitled to vote
at election of, and share in the benefits of the activities of, the Code
Authority, and may participate in any endeavors of the applicant
SSee Iarngraph 2(1) of order approving thlu Code.
and Code Authority .in the preparation of any revisions of, or
additions or supplements to this Supplemental Code, subject to
provisions of Section A and E of Article V.
. (d) Action by employers in any subdivision meeting on Supple-
:mental Code revisions, additions or supplements, or the transac-
tion of other business of the subdivision under this Supplemental
Code, shall be by a vote of the employers entitled to vote as herein
provided, who are present in person or by proxy duly executed
and filed with Code Authority, cast concurrently in each of the
(1) By one vote by each employer.
(2) By a vote of employers weighted on the basis of one vote
for each $100,000 of the annual average of sales by each employer
for the next preceding three calendar years as reported to the
Code Authority of this Subdivision. Each employer shall be
entitled to at least one such vote.
Except as otherwise provided in this Code, any action taken at
any meeting of employers shall be by a majority vote, cast and com-
puted in each of the two methods hereinabove provided. -
(e) Each employer in this subdivision, subject to the jurisdiction
of this Supplemental Code and accepting the benefits of the activities
of the Code Authority hereunder, shall pay to the Code Authority
his proportionate share of the amounts necessary to pay the cost of
assembling, analyzing, and publication of such reports and data and
af the maintenance of the Code Authority in connection with its
activities relative to the preparation and administration of this Sup-
plemental Code, said proportionate share to be based upon the vol-
ume of shipments for the next preceding three years and/or such
other factors as the Code Authority may prescribe and the
Administrator may approve.
(f) With a view to keeping the President informed, as to the
observance or non-observance of this Supplemental Code, and as to
whether this subdivision is taking appropriate steps to effectuate
the declared policy of the Act, each employer shall prepare and file
with such person or organization as Code Authority may designate,
and at such time and in such manner as may be by Code Authority
-pescribed (to be held and used subject to the limitations of this
Article V), statistics of plant capacity, volume of production, vol-
ume of sales in units and dollars, orders received, unfilled orders,
stocks on hand, inventories, "raw and finished ", number of em-
ployees, wage rates, employee earnings and hours of work and such
other data or information as the Code Authority, subject, to review
by the Administrator, may from time to time require.
Code Authority shall file with the Basic Code Authority such of
the data and statistical information referred to in preceding para-
graph as may be required.
In addition to information required to be submitted to Basic Code
Authority, there shall be furnished to Government agencies such
statistical information as the Administrator may deem necessary for
the purposes recited in Section 3 (a) of the Act.
(g) Except as otherwise provided in the Act, all statistics, data
and information filed in accordance with the provisions of this
Supplemental Code shall be confidential; provided, however, that
nothing herein shall prevent the publication of general summaries
of such statistics, data and information.
The statistics, data and information of one employer shall not be
revealed to any other employers, except, that for the purpose of ad-
ministering or facilitating the enforcement of the provisions of this
Supplemental Code, Code Authority, by its duly authorized repre-
sentatives (who shall not be an employer nor in the employ of any
employer affected by this Supplemental Code), shall have access to
any and all statistics, data and information, that may be furnished
in accordance with the provisions of this Supplemental Code.
(h) Aggregations of employers having a common interest and com-
mon problems may be grouped by Code Authority for administra-
tive purposes. There shall be a Group Code Authority approved or
appointed by Code Authority for each such group.
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 or audit to be made, to the extent permitted by the Act,
as may be deemed necessary. If such investigation is made by
Group'Code Authority it shall report the results of such investigation
or audit to Code Authority for action.
Code Authority shall have the right, to the extent permitted by
the Act, to analyze any transaction coming under the scope of this
Supplemental Code, on which any unfair competition is alleged,
to show evidence of any violation of this Supplemental Code, and
to report any such alleged violation to the proper authorities for
(i) It is. however, expressly provided, that the jurisdiction of
Code Authority under this Supplemental Code, over any employer
shall be limited to that portion of the business and employment of
such employer, which is within this Subdivision.
(j) 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 ap-
propriate modification in the method of selection of the Code
Authority, or any Group-Code Authority.
ARTICLE VI-ACCOUNTING AND COSTING
The Supplemental 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 em-
ployers shall determine and/or estimate costs in accordance with
the principles of such methods.
ARTICLE VII-SELLING BELOW REASONABLE COST
When the Code Authority determines that an emergency exists
in this industry and that the cause thereof is destructive price-cut-
Stig such as to render ineffective or. seriously endanger the mainte-
nance of the provisions of this Code, the Code Authority may cause
to be determined the lowest reasonable cost of the products of this
industry, such determination to be subject to such notice and hearing
as 'the Administrator. may require. The Administrator may ap-
rove, disapprove, or modify the determination. Thereafter, during
the period of the emergency, it shall be an unfair trade practice
for any member of the industry to sell or offer to sell any products
of the industry for which the lowest reasonable cost has been deter-
mined at such prices or upon such terms or conditions of sale that
the buyer will pay less therefore than the lowest reasonable cost of
When it appears that conditions have changed, the Code Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
ARTICLE VIII-PRICE LIrsT
(a) If and when the Code Authority determines that in any
group of the Subdivision it has been the generally recognized prac-
tice.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
employer shall, within ten (10) days after notice of such determina-
tion, 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 including f.o.b.
points and terms of sale and payment, and such additional copies
as Code Authority may require, and the Code Authority shall imme-
diately publish the same, make available to all interested parties, and
send copies thereof to all known employers manufacturing such
specified products who are cooperating under this Supplemental
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 employer, to become effective ten (10) days from
date of filing with Code Authority, unless Code Authority shall
authorize a shorter period. Copies thereof with notice of the effec-
tive date specified, shall be immediately made available to all in-
terested parties, published and sent to all known employers manu-
facturing such product who are cooperating under this Supplemental
Code, 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 and/or terms of sale and payment sheet first
filed shall go into effect..
(b) If and when Code Authority shall determine that in any group
of the Subdivision, not now selling its product on the basis of
pric% lists, and/or discount sheets, with fixed terms of sale and
payment, the distribution or marketing conditions in the group
are the same as, or similar to, the distribution or marketing condi-
tions in a group where the use of- price lists, and/or discount sheets
and fixed terms of sale and payment is well recognized, and that a
See paragraph 2 (2) of order approvig this Code.
system of selling on net price lists or price lists and discount sheets
with fixed terms of sale and payment should be put into effect in
-uch group then each manufacturer of the product or products of
liuch group shall within twenty (20) days after notice of such
determination, file with Code Authority net price lists or price lists
and discount sheets, including f.o.b. points and fixed terms of sale
and payment, showing his prices and discounts 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. 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 para-
graph (b) of Article VIII unless two-thirds of the employers (co-
operating in this Code as provided in Article V,) who are at that
time engaged in manufacturing such product, shall affirmatively
consent that such determination be made.3
(c) To the extent permitted by the Act, Code Authority shall
have power, on its own initiative, or on the complaint of any em-
ployer, to investigate any price and/or terms of sale and payment
for any product shown in any price list and/or discount and/or
terms of sale and payment sheet so filed with Code Authority by
any employer, and for the purpose of the investigation thereof, to
require such employer to furnish such information concerning the
cost of manufacturing and selling such product as Code Authority
shall deem necessary or proper for such purpose.
(d) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions
of this Article VIII at a price or at discounts, or on terms of sale
and payment different from those provided in his own current net
price lists, or price lists and discount and/or terms of sale and pay-
(e) No employer shall sell to or through any distributor who
shall fail to agree to resell in accordance with the provisions of
Articles VII, VIII and IX of this Supplemental Code.
ARTICLE IX-TRADE PRACTICES
Unfair trade practices shall be deemed to be practices or acts
which by subterfuge, concealment, misrepresentation, or discrimina-
tion, result, or tend to result in selling at other than published prices,
or in deceiving or misleading purchasers, or in misrepresenting the
products of competitors.
Any deviations from the standards set forth in this Article IX,
or any amendments thereto, by any member of this subdivision,
either directly or indirectly through his agents, shall be considered
an unfair method of competition and a violation of this Code.
The following specific practices are examples of unfair methods
of competition as defined above:
RULE 1. No member of this subdivision shall secretly ofer or
make to any customer, agent, fiduciary or representative of customer
any payment or allowance of a rebate, refund, commission, credit,
unearned discount or excess allowance, whether in the form of money
Bee paragraph 2 (3) of order approving this Code.
ir otherwise, nor shall a member of the Industry secretly offer or
Mtend to any customer any special service or privilege not extended
to all customers of the same class, for the purpose of influencing
: RmvE 2. No member of this subdivision shall give, permit to be
given, or directly offer to give anything of value for the purpose of
ifllaencing or rewarding the action of any employee, agent, or repre-
sentative of another in relation to the business of the employer of
such employee, the principal of such agent, or the represented
party, without the knowledge of such employer, principal, or party.
Commercial bribery provisions 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 above defined.
Rmat 3. Any discrimination between purchasers of the same class,
by the sale of any article having a published price, at any price other
than the seller's published price by means of direct or indirect price
concessions, or by means of any privilege not extended to purchasers
BRLE 4. Untruthfully advertising, representing, or marking any
product, with intent to deceive or mislead.
RULE 5. Wrongfully enticing away the employees of competitors
with the purpose and effect of unduly hampering, injuring, or
embarrassing competitors in their business. Nothing in this para-
graph shall be so interpreted as to in any manner restrict the right
of any employee to seek employment with any employer at any time.
BULE 6. Making or causing or permitting to be made or published
any false, untrue, or deceptive statement by way of advertisement
or otherwise concerning the grade, quality, quantity, substance,
character, nature, origin, size, or preparation of any product of the
industry, having the tendency and capacity to mislead or deceive
purchasers or prospective purchasers.
Ruiz 7. The defamation of competitors by falsely imputing to
them dishonorable conduct, inability to perform contracts, question-
able credit standing, or by other false representations, or the false
disparagement of the grade or quality of their goods with the
tendency and capacity to mislead or deceive purchasers or prospec-
RUE 8. Discrimination, either directly or indirectly in the prices
paid for used equipment, whether in cash or as a credit, in connec-
tion with a sale of products of this Subdivision, provided that this
shall not prevent discrimination in prices or allowances necessarily
resulting from differences in the make, model, age, or condition of
the used equipment so traded for or purchased. To avoid such
unfair discrimination every employer, either directly or indirectly
trough his agents, shall establish, and announce through Code
Authority, his own prices on used equipment, for the purpose of
purchase or allowance in trade in connection with the sale of
products of this Subdivision, in the same fashion as he establishes,
revises and publishes his prices on products of this Subdivision as
provided for in Article VIII of this Supplemental Code.
RELE 9. Inducing or attempting to induce any breach of existing
contract between a competitor and his customer or wrongfully inter-
fering with or obstructing the performance of any such contract.
RuLE 10. Granting of either a selling commission or dealer's dis-
count to any concern or individual other than bona fide woodworking
machinery dealers or salesmen.
RULE 11. Selling or quoting for delivery at any points other than
specified in published price schedules without the addition of proper
transportation, handling, erection and installation charges.
RULE 12. Withholding from or inserting in an invoice, any state-
ment, which makes the invoice a false record, wholly or in part, of
the transaction represented on the face thereof.
RULE 13. The making of any guarantee against defect in ma-
-terial or workmanship for a longer period than one year from
RULE 14. The sale or offering for sale of any product of the Wood-
working Machinery Industry under any form of guarantee to the
purchaser or prospective purchaser against either advance or pro-
tection against the decline in the price of said product.
RULE 15. In all cases of competitive bidding, all bids submitted
shall be the bona fide final bids of the bidders and no changes in
the amount of the bids shall be made, save only those due to changes
in the plans and specifications, or where equal opportunity to change
bids is extended to all bidders; and in such cases changes in the
amount of the bid shall be made on the same unit or other basis as
the original bid.
RULE 16. The sale or offer for sale of the product of this Subdi-
vision on terms involving a period of trial that allow the purchaser
the right to reject or refuse acceptance of such product for any rea-
sons other than (1) failure of such product to comply with specific
guarantees of performance duly written in the purchase contract;
and (2) refusal on the part of the seller or his agent to make good
defects in material or workmanship of such product.
RULE 17. Shipping Home Craft equipment on consignment except
under circumstances to be defined by the Code Authority, where
peculiar circumstances of the industry require the practice; shipping
in excess of quantity specified in order; relating of orders or the
cancelling of an original order and the substitution therefore of a
new order with a later date for the same merchandise.
RULE 18. Exchanging Home Craft equipment or accepting such
equipment in return provided that this shall not apply to obsolete
home craft equipment or equipment which is defective in material
ARTICLE X-SALES FOR EXPORT
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. A similar exemption may be granted
by the Code Authority of this Subdivision as to sales of any product
destined ultimately for export. Unless otherwise determined by the
Code Authority the term "export" shall include all shipments to
all places without the several states of the United States and the
District of Columbia; provided, however, that no shipment to any
territory or possession of the United States shall be considered an
export when any employer is engaged in the industry in such terri-
tory or possession.
(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
66%% of the employers who are cooperating in the administration
of this Supplemental Code shall be in full force and effect upon ap-
proval by the Administrator. 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 promote monopolies, and shall not be so construed or
applied as to oppress or eliminate small enterprises or discriminate
against them, and is designed to effectuate the policy of the Act.
ARTICLE XIII-EFFECTIVE 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 Administrator, and shall not be otherwise effective.
Approved Code No. 347-Supplement No. 6.
Registry No. 1399-31.
UNIVERSITY OF FLORIDA
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