For sale by the Superintendent of Documents Washibngtn D.C. Price 5 cense
Approved Code No. 72--Supplement No. 2
Registry No. 1399--30B
NATIONAL RECOVERY ADMINISTRi~ATION
CODE OF FAIR COMVPPETITION
PAhPER BOX MACHINERY
INDUSTRY AND TRADE
(A Division of the Packaging Machinery Industry and Trade)
AS APPROVED ON MAY 21, 1934
GOVERNMENT PRINTING OFFICE
This publication Is for sale by the Superintendent of Documents, Government
Printing Office, W~ashington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMM~ERCEP
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
C~harleston, B.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 801 First National Bank Building.
Houston, Tex.: Chamiber of Commerce Building.
Indlianapo~lis, Indl.: Chamber of Commerce Building.
Jacksocnville, Fla.: Chamber of Commerce Building.
K'ansas City, nIlo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Loruisville, Kiy.: 408 Federal Building.
lblemphis, Tenn.: 229 Federal Building.
Mlinneapolis, Ilinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 400 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Offce Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Oflce Building.
Approved Code No. 72-Supplement No. 2
CODE OF FAIR COMPETITION
PAPER BOX MACHINERY INDUSTRY AND TRADE
As Approved on May 21, 1934
APrrovIwo SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
PAPER BOX MBCHIINERY INDUSTRY AND TRlADE
A DIVISION OF THE PACKAGING MAdCHINERY INDUSTRY AND TRADE
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-
mentary Code of Fair Competition for the Paper Box M~achinery
Industry and Trade, a Division of the Packaging Ml~achinery Indus-
try and Trade, and hearings having been duly held thereon and the
annexed report on said Supplementary Code, containing findings
with respect, thereto, having been made and directed to the President:
NOHs, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me b Eecutive Orders of the Prest-
dent, including Executive Order o.6543--A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexied report, and do find that said Supplementary Code complies in
all respects with the pertinent provisions and will promote the policy
andt purposes of said Title of said Act; and do hereby order thiat
said Supplementary Code of Fair Competition be and it is hereby
HUGH rS. JoHNson,
Administrator for Inzdustri'al Rec~overy.
Approval recommended :
A. R. GLANcy,
11ay 21, 1934.
609 75' ----514--12 1 -34
REPORT TO THIE PRESIDENT
The WThite Howte.
Smn:This is a report on the Supplementary Code of Fair Competi-
tion for the Paper Box Miachinery Industry and Trade, a division
of the Packaging Machinery Industry and Trade, submitted pursuant
to the provisions of Section 7, Article XIII of the Basic Cocle for the
Packaging Machinery Industry and Trade, and revised after a hear-
ing held in1 Washington on the 30th day of March, 1934, in accord-
ance with the provisions of the National Industrial Recovery Act.
The Paper Box Machinery Industry and Tradel being: truly repre-
sentative of this division of the Pa~ckaging Macinnery Industry and
Trade has elected to avail itself of the option of submittin$ a Suop-
plementary Code of Fiair 1Practice as provddori Section 7 o
Article XIII of th Basic Codle, for the Packaging Machinery In-
dustry and Trade approved by you on the thirty-first day of October,
PROVISIONS AS TO HOTTR8 AND WAGES
This Industry operates under the labor provisions of the B3asic
Code3 fo the Packaging Machinery Industry and Trade, of which
it is a Division.
ECCLONOIC EFFECTS OF THE SUP~PLEMNTARY CODE
This ITndustry represents a total invested capital of approxi-
mat~ely. $2.740,0010.00 and had a sales volume during 1933 of $987,-
000.00, an increase of 12.2 percent over 1932.
This Supp~leme~ntory Clode is designed to cure certain economic
ills existing in the Industry and increased purchasing power should
followr the establishment of thiS EOunder economic condition.
The Deputy Ad~ministrator in his final report to me on said Sup-
plemeentary ~Cotle halving found as herein set forth and on the basis
of alli proceedlingrs ini this matter:
I find~ thant:
(a) Said Supplementary Code is well designed to promote the
pollicies and purposes of Title I of the National Industrial Recovery
Act. inicluding removal of obstructions to the free flow of interstate
andi foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organ-
ization of industry for thle purpose of cooperative action amlon~ thle
trade groups, by inducing and maintaining united action of labor
and management under adequate g~overnmental sanctions and super-
vision, by eliminating unfair competitive practices, by promnoting
the fullest possible utilization of thie present productive capacity
of industries, by avoiding undue restriction of production (excep-t
as may be temporarily reu re) by increasi-ngtecnupo o
indutria an agrcultralproducets through increasingpucasn
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by mne as a major industry.
(c) The Supplementary Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (al) of Section 3, Subsection (a) o?
Section 7, and Subsection (b) of Section 10 thereof; and that the
as~pplicant group is an industrial association truly5 representative of
th foresaid Industry; and that said association imposes no inequi-
table restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplemnentary Code is not designed to and wvill not
eliminate or oppress small enterprises and wvll not operate to dis-
criminate against them.
(f) Those engaged in other types of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, this Supplementary Code has been approved
Hunan S. JoHNson,
MaY 21, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE PAPER BOX MACHINERY INDUSTRY ALND
A DIVISION OF TE PACK~AING 3[ACHINERT INDUSTRY AND TRADM
To effectuate further the policies of Title I of the National In-
dustrial Recovery Act, the following provisions are established as
a Su Pplementary Code of Fair Competition for the Paper Box
M~achmnery Industry and Trade, a Division of the Packagmng Ms-
chlinery Industry and Trade, pursuant to Section 7 of Article
XIII of the Code of Fair Competition of the Packaging Machinery
Industry and Trade, approved by the Presidlent of the United States
on the thirty-first day of October, 1933, or as amended. The pro-
visions of said Code, as modified and/or amended and/or supple-
mented by this Supplementary Code shall be the standard of Fair
Competition for the Paper Box Machinery Industry and Trade, a
Division of the Packaging Ma~chinery Industry and Trade, and
shall be binding upon every m~emlber thereof.
SECTION 1. The Industry.--The term Pape~r Box Machinery
Industry or Industry ", as used herein, is defined to mean the
manufacture and/or rebuilding and/or sale of power-driven auto-
matic and semli-automatic and/or hand or foot operated machinery
and/or equipment and/or parts therefore which were originally de-
signed for and/or are used wholly or in part for the manufacture of
paper boxes; namely: all1 of the following listed machinery and/or
equipment and/or parts therefore; excepting, however, any parts
therefore having a general pu~rproig adose or use:Scrn ahns
1. Cardboard Skiving, Govn n crn ahns
2. Corner Clutters, Board and Paper.
3. Shoulder Cutters, Hand Feed and Automatic Operated.
4e. Rotary and B~ar C~reasers (not including Cutters and Creasers
which are Mfodified Platen or Cylinder Printing Presses.)
5. Light Duty Paper Slitters, not Used in Paper Converting.
6. Box Enders.
7. Stayers and Box Banding ahns
8. Bighwoo, Inanandsimlilar Setting-Up Machines ~for
formling or setting up Paper Boxes.
9. Turning In MZachines.
10. Table Cummers.
11. Automatic Gummers with and without Tabbing Attachment.
12. Stencil Gluers.
13. Box W~rappers, Automatic and Semni-Automatic.
14. Box Stripping Mfachines, Automatic and Semi-Autonat~ic.
15. Toppers, Hand and Mechanical.
16. Box Lucing and Fly Leafing Manchines.
17. Thumib Holing Manchines, Automatic and Hand.
18. Shoulder Makling Mlachines.
19. Shoulder Gluers and Pressers, Automat~ic aind Hand.
20. Extension Edge Manchines.
21. Lining Manchines.
22. Roll Sheet Cutters.
23. F~lange Becnders.
24. Round and Oral Cutters.
25. B~ox Domning Manchines.
26. Folding BIox Gluers.
27. Rotary Board Slitting M~achines.
28. Partition M~aking Miachines.
29. Table Shears, Hand Operated (not including any type of Guil-
lotine Paper Cutter).
Rebuilt paper box machinery and/'or equipment shall include
rebuilt, overhaulled,, reconditioned, repaired and/or used
machinery and/'or equipment as listed above.
SECTION 2. Th~e Trad~e.--The term "L Paper B~ox Manchinery Trade "
or Trado ", as usedl herein, is defined to mean the mnarkleting of
paper box machinery as defined in Section 1, by dealers in, and/or
distributors and/lor Jobber~s of, the products of the Industry.
SECTION 3. Member of th~e IndustrU! and/or Trarde.-T~ihe term.
"L Member of the Industry and/or Trade ", as used herein, is defined
to mean any person, firm,, corporation or other form of enterprise
engaged in the Industry and/or Trade, as above defined, either as
an employer or on his or its owPn behalf.
SECTIrON 4. Ba880 Code.--The term "L Basic Code ", as used herein,
is defined to mean the B~asic Code of Fair Competition for the Pack-
awing M~achinery Indulstry and Trade, as approved by the President
o~ the Unitedi States on the thirty-first day of October, 1933, or as
SECTION 5. Code Authlority.--The trml Codle Authority ", as
used herein, is defined to mean the Code Authority of thle Packaging
iachineryy Industry and Trade.
SECTION 6. Member of the Code.--The term mlember of the!
Code ", as used herein, includes any member of the Industry and/or
Trade who shall signify assent to thiis Supplementary Code.
SECTION 7. Sulb-Code Aulthority.--The terml "L Sub-Code Author-
ity ", as used herein, is defined to mean the Sub-Code Authority
established in accordance with Article VII of this SupplementaLry
SECTION 8. InZstitute.--The term Institute ", as used herein, is
defined to mean the Pack~aging M~achiner~y Mlanufacturers Institute,
Incorporated, or its successor or successors.
SECTION 9. Div2ison.-The term "L Division ", as used herein, is de-
fined to mean the Paper Box Mfachinery Industry and Trade, a
Division of the Pack~aging Ma~lchinery Industry and Trade and/or
of the Packraging MIachinery Mlanufacturers Institute, Incor~poratedl.
ARTICLE Tn:-LABOR PROVrIIONS
The labor provisions of the Basic Code, namely,. Employment n,
"c Minors ",' Wa es ", "( Hours ", State Regulations ", as well as
the "L Definitions insofar as they pertain to labor, are hereby made
a part of this Supplementary Code with the same effect as If they
were written into this Supplementary Clode.
Every employer shall provide for the safety and health of em-
ployees during the hours and at thle places of their employment.
Standards for safety and health shall be submitted by t~he Code
Authority to the Administrator within six (6) months after the
effective date of tl is Supp~lement-ary Code.
ART'IICLE IV--ADOPTION OF OTHER~ PROV'ISIONB OF THE BASIC CODE.
All other provisions of the Bansic Code, as approved on October
31, 1933, or as amended, to the extent that they are applicable as a
part of this Supplemnentary Code and insofar as they are not
in conflict. with the provisions of this Supplementar~y Code, are
hereby incorporated by reference and made a part of this Supple-
ARTIrCLE V--INDUSTRIAL, RELATIONS COMM~ZIrrEE
There may be established an~ Inldustrial Relations Comnmittee for
the Industry and Trade, which shall consist of an equal number of
representatives of employers and employees and an impartial chair-
man. The Administra~tor shall appoint such impartial chairman
upon the failure of the committee to select one by agreement.. If
no truly representative labor organization exists, the employee mem-
bers of such committee may be nominated by the Labor Advisory
Board of the N.R.A. and appointed by thie Administrator. The
em~ploy~er r~epresentatives shall be chosen by the Code Auth~ority.
SCuch commiiittee shall deal w-it~h complaints and disputes relating to
labor in necordance with rules and regulations issued by the Admin-
istrator. The Industrial Relations Committee may establish such
d~ivisional, regional, andl local industrial adjustment agencies as it
miay deemn desiranble, each of wrhichl shall be constituted in like man-
ner as thie Inidustrial Relations Commnittee.
ARTICLE VI--APPLICANT ORGANIZBTION
SECTION 1. pll2i'cant.--The applicant for this Supplementary
Code is the Paper Box Machinery Division. of the Institute, a divi-
sion of a trade organization, all members of which are engaged in
the manufacturer andl/or marketing of the products of the Industry.
ARTICLE VII--ORGAnNIZATION AND ADMINISTRATION
SecTlon 1. cSub-C'ode Authority.--A Sub-C~ode Authority is hereby
established as the agency to cooperate with the Code Authority and
the Adtministrator in the administration of the Basic Code and of
this Supplem~entary Code.
Snd~roro 2. Mlembership~ of Susb-Co~de Auth~orityl.- (a) The Sub-
Code Authority is established in accordance with the provisions of
Article XII of the Basic Code and shall consist of five (5) members
of the Paper Box Machinery Industry and Trade, a Division of the
Packaging Machinery Industry and Trade, to be elected by the mem-
bers of the Code as defined in Article II hereof from a list of all
members of the Industry and Trade whose names have been ascer-
tained after diligent search, the method of election to be subject to
the prior approval of the Code Authority and of the Administrator;
and mn addition thereto, one member who may be appointed by the
Administrator, without vote, and who together with t~he Adminis-
trator shall receive notice of and be entitled to attend all meetings of
the Sub-Code Authority.
(b) Until such election has beell held, which shall be within sixty
(60) days after approval of this Supplementary Code, the committee
authorized by the Paper Box Machinery Industry and Trade, a
Diviionof he ackgmgMachinery Industry and Trade to present
(c) The term of office of all members of the Sub-Code Authority,v
except the member appointed b~y the Administrator who shall serve
for such term as the: Administrator mayspcfhllbuni
January 31, 1935 and thereafter for one year.Susqetleioso
such members shall be conducted in accordance with the method of
election approved by the Code Authority and the Administrator in
necordance with Section 2 (a) of this Article.
(d) In order that the Sub-Code Authority shall at all times be
truly representative of the Industry and Trade, and in other respects
comply with the provisions of the National Industrial Recovery Act,
the Ad-ministrator may prescribe such hearings as he may deem
proper; and thereafter if he shall find that the Sub-Code Authority
Is not truly representative of the Industry and Trade or does not in
other respects comply_ with the provisions of the said Act, may require
an appropriate modification in the method of selection of the members
of the Sub-Code Authority.
SECTION 3. Expenses of Code Admi~nisrratio~n.-It being found
necessary, in order to support the administration of this Supple-
mentary Code and to maintain the standards of fair competition
established by this Supplementary Code and to effectuate the pol-
icy of the Act, the Sub-code Authority is authorized, subject to
the approval of the Admlinistrator:
(a) To incur sulch reasonable? obligations as are necessary and
proper for the purposes enumerated in this Supplementary Code
and to meet such obligations out of funds which mlay be raised as
hereinafter provided and which shall be held in trust for the pur-
poses of the Supplementary Code;
(b) To submit to the Administrator for his approval, subject
to such notice and opportunity to be heard as he may deem neces-
sary, (1) an itemized budget of its estimated expenses for the
fore~going purposes, and (2) an equitable basis upon which the
funds necessary to support such budget shall be contributed by
members of the Industry and/or Trade;
(c) After such budget and basis of contribution have been ap-
proved by the Admimlstrator, to determine and secure equitable
contribution as above set forth by all such members of the Indus~try
and/or Trade, and to that end, If necessary, to institute legal pro-
ceedings therefore in its own name.
SECION4. nlymemlbers-of the Industry and/or Trade com-
plying with the Spplementary Code and contributing to the ex-
pnses of its administration as provided in Section 3 hereof shall
beentitled to par~ticipate in the selection of the members of the
Sulb-C~ode Authority or to receive thle benefit of its voluntary ne-
tivities or to make use of any emblem or insignia of the National
SECETON C3. rljadtibf8e and Infornation.-- For purposes of ad~mn-
istration of this Supplementary Code and with a view to keeping the
Administrator informed as to the observance or non-observance of
this Supplementary Code, and fur'nishing: to the Administrator such
information as he may require, the Sub-Code Authorit shall col-
lect from members of the Industry and/or Trade such statistics
and/or reports as it mlay deem necessary and send them to the Code
Authority in such forml as the Administrator may require.
SECHION 6. Da~ta C'onfidential.-All statistical data and/or infor-
mation furnished by anly member of the Industry and/or Trade in
accordance with the foregoing provisions shall be collected and
kept in a confidential manner by a, disinterested person or agency
appointed by the Sub-Code Aut'hority and the reports of any in-
dividual member of the Industry and/or Tra~de so collected shall
not be divulged to any other member of the Industry and/or Trade
or to anyone else except as may be authorized or directed by the
Ad min istrator.
In addition to information required to be submitted to the Sub-
Code Authority, members of the Industry and/or Trade subject to
this Supplementary Code shall furnish such statistical information
as the Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act to such Federal and State agencies as he
may designate; provided that nothing in this Code shall relieve any
member of the Industry or Trade of any existing obligations to
furnish reports to any G~overnment agency.
SECTION 7. Complaints.--Under such rules and regulations as the
Administrator may from time to time prescribe, the Sub-Code
Authority may~ receive complaints of violations of this Supplemen-
taryv Code, make investigations thereof, provide hearings thereon,
andl adjust such complaints and bring to the attention of the Admin-
istrator through the Code Authority, any recommendations and
information relative to unadjusted complaints or violations.
SECTION 8. StalUlardt8 Of flie Intfustly.--In order to assist in mak-
ing effective the reports from the Industry and in eliminating unfair
competition, the Code Authorityr shall within one (1) month after
the effective date of this Supplementary Code give due consideration
to the establishment of a committee so constituted as to give due
consumer and governmental representation, to make a studyih
view to the establishment of classifications and standards of dien
sion and/or quality and/or performance of products of the Industry
wlherevecr such classifications and/or standards are deemed advisable.
Proposed modifications and amendments based on such findings and
recommendations of this committee may, within one (1) year, be
submitted 'to the Administrator and after such hearings as he may
prescribe and upon approval shall become. a part of this Supplemnen-
tary Code and be binding upon every member of the Industry..
Such committee shall have the power to cooperate with any other
such standardization committee.
SacnoN 9. Coordination reith other Cod~es.--The Sub-Code
Authority, with the approval of the Code Authority, shall have
power to coot-dinate the administration of this Supplementary Code
with sueb other codies and/or supplementary codes, if any, as3 may be
related to the Industry a~nd/or Trade or any subdivision thereof, and
to delegate to any administrative authority, with the approval of the
AdmimLstrat~or, such powers as will promote joint and harmonious
action upon matters of common interest.
SECTION 10. Suspeasion of Actionz.--If the Administrator shall.
determine that any action of the Sub-Code Authority or any agency
thereof may be unfair or unjust or contrary to the public interest,
the Admimistrator may require that such action be suspended to
a~fford an opportunity for investigation of the merits of such action
and further consideration -by the Sub-Code Authority, pending final
action, which shall not be effective unless the Administrator approves
or unless he shall fail to disapprove after thirty (30) days notice to
him of intention t~o proceed with such action in it~s original or
ARTZCLE VIII -PRICE FILING AND EXCHANGE
SncTrroN 1. Filing of PricesP.--Each member of the Industry
and/or Trade shall, within fifteen (15) days after the date of ap-
proval of this Supplementary Code, file with the Sub-Codle Author-
ity, or a responsible disinterested agency or person designated by the
Sub-Code Authority, a price list independently prepared b~y such
members of the Industry and/or Trade, showing his current prices
andt terms of sale on new competitive machinery and/'or equipment
which are products of the Indus~try? sold by such mlemlber of the
Industry and/or Trade, and thereafter no sale shall be made except
at such prices and terms. For the purposes of this Article, comn-
petitive! machinery and/or equipment includes machin~ery and/or
equipment which performs similar operations in t~he process of
man fact during pa per boxes mnade by another member of the
SECElON 2. Change8 ~in Filed Prices.--Pr:ces and sterns as and
when revised shall be similarly filed fromt time to time thereafter,
to be effective immediately except that, upon machines newly de-
signedl and invented, the prices annd terms therefor shall .become
effective immediately upon same being offered for sale, and shall be
filed within five (5) days thereafter. All price lists and terms,
together with any revisions thereto, shall be open to inspection at
all reasonable times by any interested party.
SECTION 3. Deuaatian1 frlom Filed PFACe8.--No member of the In-
diustry and/or Trade shall sell any competitive product of the
Industry for any price or on any terms other than those set forth
in his last price list and terms as fled or required to be filed by this
Article; provided, however, that such machines and/or equipment
may be sold to authorized dealers, jobbers and/or distributors
at the list price less the discounts to dealers, jobbers and/or
SEGPION 4. PPceC EXChange.--Upon written application of any
member of the Code, the Sub-Code Authority or the agency or per-
son designated by the Sub-Code Authority shall furnish such mem-
ber manufacturing and/or marketing similar competitive machinery
and/or equipment a copy of any price list and/or terms filed with it.
Each member of the Industry and/or Trade shall provide with each
filed price list and/or terms or revised price lIst and/or terms sufE-
cient copies for distribution to every other competitive member of
the Industry and/or Trade, in addition to the copy filed with the
Sub-Code Authority or the agency or person designated by the Sub-
CdSECTI~ON 5. Machine Description.-Every price list filed for a
machine must indicate clearly what is included in the way of equip-
mn.All other equipment, whether regular or special, must b
priced separately and, if furnished with the machine, must be sold
at such list price in addition to the price of the machine as listed,
and must be sold under the: terms and conditions governing all sales
as specified in Art~icles VIII and IX of this Supplementary Code.
ARTICLE IX--TRADE PRACTICE RULES
General Deffnition.--For all purposes of this Supplementary Code,
the acts described in this Article shall constitute unfair trade prac-
tices. Any member of the Industry and/or Trade who shall directly,
or indirectly, through any officer, employee, agent, or representative
knowingly use, employ, or permit to be used or employed, any such
unfair practices shall be guilty of a violation of this Supplementary
RULE 1. Selling Other Thacn New? Machines as Newr.-No member
of the Industry and/or Trade shall sell re-built, re-conditioned or
overhauled products of thle Industry7 as and for new products.
RULE 2. Tam~pering poith Competitors' Machinzes.--No member of
the lIndustry and/or Trade shall directly or indirectly knowingly
maladjust a competitor's products in order to discredit them with a
customer, or for any other purpose.
RULE 3. Selling 80e FT1ff'Mel8 a8 Oth.er Ta~n Newo.-Nho member
of the Industry and,/or Trade shaUl sell new products of the Indus-
try as demonstration, exhibition, re-built, re-conditioned, overhauled
or used machinery and/or equipment below the price of or on more
favorable terms than similar new products.
RULE 4. Inaccurate Reference to Com~petitorls.--No member of the
Industry and~/or Trade shall knowingly use advertising or other
representation which refers mnaccurately in any~ material particular
or krnowingrly dlisseminate false or misleading information relative
to any competitor or his products, sellingr prices, values, credit
standing, credit terms, ability to perform work, conditions of employ-
mlent, policies or services.
RULE 5. Esp~io~agle of Com petitors.--No member of the Industry
and,/or Trade shall deliberately procure or attempt to procure, di-
rectly or indirectly, any confidential information concerning the
business of another member byv false or misleading statement, or by
representation through false impersonation of one in authority, or by
bribery, or by any other unfair method.
Runn 6. Deceptivre Advertisin.g.--No member of the Industry
and /or Trade~ 1shall krnowingly7 ue adlvert~ising or selling methods or
credit terms which have t~he capacity and tendency to deceive or
mislead a customer or prospective customer.
Rom: 7. U'sinzg Adverti'sing Matnerial of a Comr~petitor.--No member
of the Industry and 'or Trade shall knowinglyv use the advertising
material of another member of the Industry and./or Trade in the
sale of products of the Industry, except with the permission of such
RoUI; 8. M~isr)epr'esen-ting Origin of Pa)rts.--No member of the
Industry and/.or Trade shall knowingly misrepresent the origin of
a part or parts, either through direct statements or by implication.
RULE 9. Identiea~tion Mlark~s and ,Seria~l Numbers.--No member
of the Industry and,'or Trade shall obliterate, remove, damage,
destroy,: tamper with or alter mn any manner the trade names or
trade or identification marks 'or serial numbers of machines and /or
attachments which are products of the Industry, with the intent of
destroying the identity of origin of manufacture; and no member
of th~e Industry and/.or Trade shall in any way misrepresent any such
product includingg buit without limnitaution its trade mark, trade
name, or other mark of identification other than part symbols). All
members of the Industry shall place a serial number and an ident~i-
fication mark on each machine and,'or equipment manufactured by
suIch member of the Industry sufficient properly to identify the
origin of manufacture.
RULE 10. Interferecer w~ith Co-n.tractua~nl Relation~.--No member
of the Industry and.'or Tratde shall deliberattely induce or attempt
to induce t~he breach of an existing contract, either oral or written,
between a member and his customers or source of supply by any false
or deceptive mieans. or deliberately interfere with or obstruct the
performance of such contract or contractual duties or services by
anzy suich means with the purpose and for the effect of hampering,
Injuring. or em barrassing any mem er in uis business.
RGLE 11. FnTSPe 8?? /Wg.--RO member of the Industry and/or Trade
shall know~ingvly withhold fr~om or insert in any quotation or invoice
any statement that makes it inaccurate in any material particular.
RULE 12. Freight C~a~rges.--No mem~ber of the Industry and/'or
T`rrade shall absorb freight. or other transportat~ion or rigginng charges
on sales of products of the Industry. All shipments made by a
mrrmber of the Industry shall be made F.O.B. his factory. All
shipments madle by a member of the Trade shall be made F.O.B.
RULE 13. Re8,I0f8, cSplif COPnIR/882'ons8, et cete~ra.--No member of
the Indulstry andt/'or Trade shall make or permit, to be made any
secret payment or allowance of rebates, refunds, commissions, split
commissions or unearned discounts, whether in the form of money
or otherwise. o~r secretly extend to certain purchasers special services
or privileges not extend;ced to all purchasers on like terms and con-
ditions; provided, however, that this shall not be construed to
prohibit t~h-e payment of discounts which may be shown in the
membercl's price lists filed~ in accordance wFith Article VIII hereof,
or as pr1ovidcd lc~lsewhee hereini.
IItULE I4. Cr'Onlination ISales.--No mlemlber of thle Industry and/or
Trad~e shall sell or offer to sell products other than the products of
this Induistr~y at prices below thle prevailing market prices of such
products or donate or offeri to dlonate such products in order to influ-
ence sales of products of this Indunstry.
RULE 15. Tr~ade-ila All~owancells.- (a For a period not exceeding
six (6) months after the eiffctive dlate of this Supplementary Code,
no mnember of the Industry and/'or Tracle shall miake or oiler: to make
a trade-in allowance in excess of twelve andi a half (121/,) per cent
for any machine and~/or equipment, more than five (5) years old and
less than ten (10) years old, or make or offer to make a trade-in
allowance inl excess of five (5) per cent for any machine and/or
equipment, more than ten (10) years old andi less than twenty (20)
years old, or make or offer to make any trade-in allowance whatso-
ever on any machine and/or equipment over twenty (20) years old.
The allowance in all cases shall be figured on the original price of
the machine and/or equipment accepted in trad~e.
(b) The Sub-Code Auithority shall cause to be mande a study of
thle reasonable market v-alue of used paper box machinery andl/or
equiipment as defined in AQrticle II and shall, from time to time, withl
the approval of the Admninistrator, adopt maximnum trade-in allow--
ance schedules for such used machinery andi/or equipment, based
upon the reasonable mark-et value of such used machinery and/or
equipment, andi thereafter no member of the Industry andi/or Trade
shall make a trade-in allowance in excess of the maximum allow-
ances providedt for in such approved schedules which shall, as
Adopted or fromt time to time modified with the approval of the Ad-
ministrator, constitute a part of this Rule in lieu of paragraph (a).
WVith a viewv to providing factual daita on which such schedules
of mnaximum trade-in allowances may be revised and established from
timne to time, members of the Industry andi/or Trade shiall, as thle
Sub-C ode Authporsity m require, report to the Sub-Code Authori ty
or t som resonsile dsinterested agency or person designated b
the Suib-Code Authority, allowances made under this Rule for each
tradedl-in machiine and the price at which suich traded-in machine
is resoldl, together with an estimate of thle costs of reconditioning or
rebuildlina such machiine, if any, and an estimate of thle direct costs,
if any, at selling such machine.
(c) In1 case the age or serial number of th~e machine and/or equip-
ment traded~ in cannot be! readily ascertained, thle customer muist
prove to thle satisfaction of the member of the Indulstryy and/or
Trad-e the appr~ioximate dante on which the machine andi/or equipment
w~as originally soldl and th~e approximate sale price thereof.
(d) No m~emnber of the Industry and/'or Trade shall purchase used
machiner~y and, ocr equipment fromi a customer or prospective cus-
tomeri for a price larger than thle trade-in allowance with the intent
or elffct o~f dcfeating or avoiding the provisions of this Rule 15.
(e) Only papijer box machinery and/ior equlipment,, as defined in
Article II of thiis Sjupplemen~tary Code, mnay be taken in trade for
new paer' b~Ox machiinery anid/or equip~ment
(f) In transactions involving a trade-in allowance for paper box
machinery and/or equipment, the member of the Industry and/or
Trade may, at his option, credit the trade-in allowance against the
cash payment required, or calculate the percentage of payments on
the price after deducting the trade-in allowance. A cash discount
shall be allowed only on the balance after deducting the allowance
from the list price.
RULE 16. Permitting Retention of Traded-In Machines.--No mem-
ber of the Industry and/or Trade shall permit purchasers to retain
machinery and/or equipment for which a trade-in allowance has
been made. Each member of the Industry and/or Trade shall return
the traded-in machinery and/or equipment to his place of business
or shall totally destroy and junk it unless he shall have sold it to a
bona fide customer for a sum not less than the trade-in allowance.
BRUE 17, 188 GlatkioR Gnd IMstructionz Char~ges.--No member of
the Industry and/or Trade shall install machinery and/or equipment
and/or parts thereof or provide instruction to operators except he
make an adequate service charge of not less than the actual cost
of installation and/or instruction time per man, plus living and
traveling expenses to and from the customer's ffactory; provided,
however, that installation and instruction service may be included
in the price and terms, if so specified in the price and terms as
fied under Article VIII of this Supplementary Code, on the
1. Box Banding Machines.
2. Automatic Gummers with or without Tabbing Attachment.
8. Stencil Gluers.
4. Box Wrappers, A~utomatic and Semi-Automatic.
5. Turning In Machines.
6. Box Stripping Machines, Automatic and Semi-Antomatia,
except Claff MSlachines.
7. Mechanical Toppers.
8. Box Lacing and Fly_ Lefing Machines.
9. Shoulder Making Machines.
10. Automatic Shoulder Gluers.
11. Lining Machines.
12. Roll Sheet Cutters.
13. Box Doming Machines.
14. FEolding Box Gluers;
and provided, however, that free demonstration may be
provided on the first installation of a new or changed ma-r
chine or a new or changed model.
RULE 18. Ins880,ir Szc0 Edect t0 Specifec Performance Ch~~~re
tee.--No member of the Industry and/or Trade shall install any
machinery and/'or equipment on trial; provided, however;
(a) That a member of the Industry and/or Trade may install
machinery and/or equipment, subject to specific performance guar-
antee, for any customer or prospective customer who has not previ-
ously purchased or tried any machinery and/or equipment of the
same make and type, under a contract of sale for a single machine
and/or equipment, the terms of which contract specify that it may
be rescinded by the customer and the goods returned within sixty
(60) days from the date of installation if the machine and/or equip-
ment shall fail to operater and/or produce according to the specifle
performance guarslantee of thle member of the Industry and/or
Trade ; and
(b) That it sha~ll not be construedl a violation of this Rule 18 to
install new~ly developed models of mlachincry and/or equipment
and/or attachmients in at customer's or prospective customer's plnt
for the purpose of testing their op Iration under practical wor~king
(c) That it shall not b~e a violation of this Rule 18 to install other
machinery,,l,, and/or equip en subject, to specfic peLrform ~nce gura~n-r
tee where the purpose of thle insctallation is to test the practicability
and/or consumers acceptability of the product of the machinery
and/or equipment in cases where these factors cannot be otherwise
determined ; and
(d) That nothing herein shall prevent the return or surrender
of any machinery aznd/or equipment and/or p~art sold under a specific
performance guarantee wFhichi has not been met within the time
provided in the contract of sale; and
(e) That, in case the machinery and,/or equipment and/or parts
installed subject to a specific performance garantee to test the
practicability and/or the consumr~er acceptability of the product of
th~e machinery and/or equipment are not acce~pted and are returned
to the manufacturer, the customer shall pay all transportation, in-
stallaltion and demonstration charges; and
(f)_ That all machinery and/or equipment installedl subject to a
specific performance guarantee and accepted by the customer shall
be paid for in conformlity with the prices and terms of sale referred
to in Article VIIIT of this Supplementary Code; and
(g) That nothing in this Rule shall be construed to limit the
warranties of workmanship and material made by the member of
thle Ilndustry and/or Trade or implied by law.
RULE 19. Serv2ice Cokrges.--No member of the Industry and/or
TrIadle shall, after a machine and/or equipment has been installed
and demonstrated, furnish material or labor or incur other expenses,
on request of the customer, without making to the customer adequate
and proper charge therefor, except wvhere necessary to effect proper
operation of a machine andor equipment where the member of the
Industry and/or Tr~ade is at fault or to meet the reasonable guar-
antee ofl the member of the Industry and/or Trande in respect of
defects in~ workmanship or materials which may develop mn service.
RULE C)O. Tem??8 Of: Sale.--No member of the Industry and/or
Tradse shall sell paper box machinery and/'or equipment, except on
royalty, on terms more favorable than as follows:
a)w Net thiry (3 tdsouttn(0) days from date of invoice.
b) Tw (-2) perit cetdsouttn(0) days from date of invoice.
c)On machinery and/or equipment sold on a deferred payment
pla n, twentyl-five (25) per cent in cash thirty (30) days from date of
Invoice, the balance bemng payable in approximately equal amounts
bearing interest at the rate of six (6) per cent per annum over a
maximum period not exceeding eighteen (18) months; provided,
however, that on a machine and/or equipment on which the price
exceedls ten thousand ($10,000) dollars, the period of payment may
exceed eighteen (18) months, and provided further that if the period
of payments specified by the contract of sale exceeds twelve (12)
months, at least one quarter of one per cent per month shall be
charged for the entire period in excess of twelve (12) months, in
additon to tshaded six()pe cent interest, or provided that if the
accont s hndld trouh finance company, the prevailing finance
and interest rates shall be charged.
RULE 21. Chanrges for AttachmeRnts, Accesso7ries, or Alteratilons.--
No member of the Industry and/or Trade shall add attachments
and/or accessories or makae 'alterations to standard machines, with-
out adding to the price filed a proper charge therefore, which charge
shall be not less than the sum of the. costs of parts furnished, direct
labor, material and shop overhead.
Ranr 22. D~isori~miation.-No member of the Industry and/or
Trade shall discriminate in selling price between purchasers of the
same class under similar conditions except for differences in grade
or quality purchased.
RTLE 23. &uantity Di8count8.--No member of the Industry and/or
Trade shall give a quantity discount.
RITIE 24. RepOffmy1 Bu~tfDio-1id Bg6818, Jobbers, Distribultors,
Dealer. Within thirty (30) day after the effective date of this
Supplementary Code,. every member of the Industry shall file with
the Sub-Code Authority or agency or person designated byv the Sub-
Code Authority under Section 1 of Article VIII hereof, a list of his
or its authorized jobbers or distributors of and/lor dealers in and or
agents for the products of the Industry, with their addresses, and he
shall file the names andt addresses of all additional jobbers, distribu-
tors, dealers and/or agents and all cancellations thereof, to become
effective on the date specified in the notice filed with the Sub-Code
Authority or agency or person designated by the Sub-Code Author-
ity. Such lists shall, on request of any member of the Code, be fur-
mished by the Sub-Code Authority or agency or person to such
No member of the Industry shall allow any discount or pay any
commission on the sale of paper box machinery and/or equipment
and/or parts thereof, as defined in Section 1 of Article II herein, to
any party not shown in his or its list of jobbers, distributors, dealers
and/or agents, as filed with the Sub-Code Authority or agency or
person designated by the Sub-Code Authority; provided, however
that any member of the Industry may allow an established an (i
recognized machinery distributor, jobber, or dealer a trade discount
not exceeding his customary discount, provided such dealer, distribu-
tor or jobber originates the inquiry and carries the account.
SECTION 1. d8 to Products.--If any member of the Industry
and,/or Trade is also a member of any other Industry and/or Trade,
the provisions of this Supplementary Code shall apply to and affect
only that part of his business which is included in this Industry
The Sub-Code Authority shall have power to exempt members
of the Industry and/or Trade from particular trade prctierl
in whole or in part, of this Supplementary Code,wthpriur
reference to paper box machinery and/or equipment which does not
perform operations similar to the operations performed by machines
and/or equipment manufactured by another member of the Industry,
all such exemptions to be reported to the Administrator and to be
subject on review to disapproval by the Administrator.
In case a question arises as to whether a machine and/or equipment
competes with another machine and/or equipment, the question shall
be referred to the Sub-Code Authority, whose ruling shall be binding
on all members of the Industry and/or Trade, except that appeal
may be had first to t~he Code Authority and afterward to the
SECTON 2 Exprt Tade.No revision of this Supplementary
Code relating to prices or termsScD 2Ep)tT~ e-of selling, shipping or marketing,
shall apply to export trade or sales or shipments for export trade.
"' Export Trade shall be as defined in the Export Trade Act
adopted April 10, 1918.
No provision of this Supplementary Code shall be applied in such
a manner as to permit monopolies or monopolistic practices, or to
oppress, eliminate or discriminate against small enterprises.
ARTICLE 'STT-ATODIFICATION AND AMfENDMENT
This Supplementary Code and all the provisions thereof are ex-
pressly made subject to the right of the President, in accordance
with the provisions of su-section (b) of Section 10 of the National
Industrial R[Cecovery Act, from time to time to cancel or modify any
order, approval, license, rule or regulation issued under Title Io
Such. of the provisions of this Supplementary~ Code as oare not
required to be included herein by the Act may, wit h prvlo
the Administrator, be modified or eliminated in such manner as may
be indicated by t~he needs of the public, by changes in circumstances,
or by experience. All the provisions of this Supplementary Code,
unless so modified or eliminated, shall remain in effect until June 16,
~A~ny proposed amendment or modification of this Supplementary
Code miay be submitted by the Sub-Code Authority to the Code Au-
thority; the latter shall submit suchi amendment or modification to
the Adm~inist~rator together with its recommendation thereon; after
such notice and hearing as the Administrator may deem necessary,
such amendmlent or modification shall be in full force and effect as a
p'art of thi Supplementary Code upon approval thereof.
AnvTCLE XIVEFFECTIVrE DATE
This Sup~plementary Code shall becbnme effective and binding on
every member of thle Industry and,/or Trade on the eleventh day
after its approval by the President.
Appromved Code No. 72~.--Supplemont No. 2.
Registry No. 1300-30B.
i HIIUNIVR ITOFOIDA
26 0 3 6 2~~~l~i