UNIVERSITY OF FLORIDA
3 1262 08482 9547
pww,%...... w ...w. u-.-u.yplement No. 13
Registry No. 1033-1-02
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Fabricated Metal Products
Manufacturing and Metal. Finishing
and Metal Coating Industry)
AS APPROVED ON MARCH 81, 1984
WE DO OUR PART
U.S. DEPC.r TC'R
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Approved Code No. 84-Supplement No. 13
SUPPLEMENTARY CODE OF FAIR COMPETITION
PORCELAIN ENAMELING MANUFACTURING
As Approved on March 31, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
PORCELAIN ENAMELING MANUFACTURING INDUSTRY
A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING 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, and in accordance with the
provisions of Section 1 of Article VI of the Basic Code for the Fab-
ricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2,1933, for approval of a
Supplementary Code of Fair Competition for the Porcelain Enanm-
eling Manufacturing Industry, and hearing having been duly held
thereon; and the annexed report on said Supplementary Codi., con-
taining 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 Supplementary 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 Supplementary Code of Fair Competition be and it is
hereby approved; provided, however, that the provisions of Article
VII, Paragraph (a), insofar as they prescribe a waiting period
between the filing with the Code Authority and the effective date of
revised price lists or revised terms and conditions of sale be and
50361 ---482-2--34 I 1
they are hereby stayed pending my further Order either within a
period of sixty days from the effective date of this Supplementary
Code or after the completion of a study of open price associations
now being conducted by the National Recovery Administration.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. R. GLANCY,
March 31, 1934.
REPORT TO THE PRESIDENT
The Wlhite House.
SmI: This is a report on the Supplementary Code of Fair Competi-
tion for the Porcelain Enameling Manufacturing Industry, a division
of the Fabricated Metal Products Manufacturing and Metal Finish-
ing and Metal Coating Industry, the hearing having been conducted
thereon in Washington, D.C., December 20, 1933, in accordance with
the provisions of Title I of the National Industrial Recovery Act.
The Porcelain Enameling Manufacturing Industry, being truly
representative of this division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry,
has elected to avail itself of the option of submitting a Supplemen-
tary Code of Fair Competition, as provided for in Section 1 of Article
VI of the Basic Code, for the Fabricated Metal Products Manufac-
turing and Metal Finishing and Metal Coating Industry approved
by you on the second day of November, 1933.
RESUME OF THE CODE
Article I states the. purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Supple-
Article III. This Industry is a division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a Supplementary Code Authority consisting
of the Executive Committee of the Porcelain Enamel Institute,
Incorporated, or its successor and two (2) additional members repre-
senting the Industry at large, these two members to be elected by the
members of the Industry at a meeting called by the Temporary
Supplementary Code Committee, and gives the Administrator the
authority to appoint one additional member without vote and pro-
vides machinery for obtaining statistics and the administration of
the Supplementary Code.
Article V provides for an accounting system and methods of cost
finding and 'or estimating.
Article VI provides for determining the lowest reasonable cost of
the products of this Industry.
Article VII provides methods of setting up and revising price lists.
Article VIII sets forth that no provision relating to prices or terms
of.selling shall apply to export, trade.
Article IX sets forth quotation policies for the Industry.
Article X provides against the return of products.
Article XI sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.
Article XII provides against. monopolies and monopolistic
Article XIII contains the mandatory provisions contained in Sec-
tion 10 (b) of the Act, and also provides for the submission of pro-
posed amendment to the Supplementary Code.
Article XIV recognizes that. price increases be limited to actual
addition increase in the seller's costs.
Article XV states the effective date and duration of this Supple-
The Assistant Deputy Administrator in his final report to me on
said Supplementary Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplementary 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 organiza-
tion of industry for the purposes 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 Industry normally employs not more than 50,000 em-
ployees; and is not classified 1by me 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 (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
applicant group is an industrial group truly representative of the
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Supplementary Code is not. designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplementary
HUGH S. JOHNsoN,
MARCH 31, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE- PORCELAIN ENAMELING MANUFACTURING IN-
A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINIJS NG AND METAL COATING INDU TRBY
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Porcelain Enameling
Manufacturing Industry, pursuant to Article VI of the Basic Code
of Fair Competition for the Fabricated Metal Products Manufactur-
ing and Metal Finishing and Metal Coating Industry, approved by
the President of the United States on the second day of November,
1933, and the provisions of this Supplementary Code shall be the
standard of fair competition for and shall be binding upon every
member of the Industry.
The term Porcelain Enameling Manufacturing Industry ", here-
after referred to as the Industry, is defined to mean the manufacture
for sale of porcelain enameled products or parts and the rendering of
a porcelain enameling service to other manufacturers by the fol-
lowing sub-divisions of the Industry, which are hereby recognized
(a) The Jobbing Shop Dienvion, consisting of members of the
IndustrIy rendering a porcelain enameling service to other manu-
facturers whether such production be a major part, subsidiary or
intermediate activity of the employer and includes the fabrication
and 'or porcelain enameling of parts for assembly in such products
as stoves and heaters, refrigerators and coolers, display cases, store
fixtures and flat enamel sheets used for store fronts and store wall
coverings, and of other forms of production usually referred to as
jobbing and contract work.
(b) The Sign Division. consisting of members of the Industry
manufacturing all porcelain enameled signs, including the manufac-
ture of faces for porcelain enameled illuminated signs.
(c) The Table Top Divicion, consisting of members of the In-
dustry manufacturing porcelain enameled table tops for kitchen
tables, kitchen cabinets, breakfast room tables, juvenile tables, hos-
pital bedside tables, laundry tray covers, bathtub covers, wash tub
covers, combination sink and drain board covers, roll rim and
straight flanged drain boards and all other modifications of the above
such products serving the same or similar purposes and manufac-
tured to sell through the distribution channels through which the
above products are marketed.
(d) The Frit Division., consisting of members of the Industry
compounding and,'or smelting chemicals used in the manufacture of
porcelain enamels and of glazes and allied materials.
(e) And such related branches or sub-divisions as may from time
to time be included under the provisions of this Code by the Admin-
istrator after such notice and hearing as he may prescribe. This
definition specifically excepts such porcelain enameled products as
are subject to codes which have been approved by the President or
Administrator or which may be so approved.
The term member of the Industry includes, but without limita-
tion any individual, partnership, association, corporation or other
form of enterprise engaged in the industry either as an employer or
on his or on its own behalf.
The terms President ", "Act and "Administrator as used
herein shall mean respectively the President of the United States,
Title I of the National Industrial Recovery Act, and the Administra-
tor for Industrial Recovery under Title I of said Act.
The term Basic Code", as used herein, is defined to mean the
Basic Code of Fair Competition for the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry,
as approved by the President on the second day of November, 1933.
The term Supplementary Code Authority", as used herein,
means the agency which is to administer this Supplementary Code
as hereinafter provided.
The term Executive Committee", as used herein, is defined to
mean the Executive Committee of the Institute.
The term Executive Secretary ", as used herein, is defined to
mean the impartial agency appointed by the Supplementary Code
The term Supervisory Committee ", as used herein, is defined
to mean the Supervisory Committee consisting of one or more mem-
bers of the Industry, approved or appointed by the Supplementary
Code Authority upon nominations by the members of a sub-division.
The term Institute as used herein, is defined to mean the Porce-
lain Enamel Institute, Incorporated or its successor.
The term sub-division as used herein, means a division of the
Porcelain Enameling Manufacturing Industry listed and defined
ARTICLE III--EEPLOYMENT PROVISIONS
This Industry is a division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry
and without limitation the wage, hour and labor provisions in Article
III of its Basic Code as approved by the President November 2, 1933,
including Section 1 of said Article III by which the provisions of
sub-sections (1), (2) and (3) of Section 7 (a) of Title I of the Act
are made conditions of this Code, are specifically incorporated herein
and made a part hereof as the wage, hour and labor provisions of
this Supplementary Code.
ARrICLE IV-ORGANIZATION AND ADMINISTRATION
SECTION 1. During the period not to exceed sixty (60) days follow-
ing the effective date, the Executive Committee shall constitute a
Temporary Supplementary Code Authority until the Supplementary
Code Authority is elected.
There shall be constituted within the sixty (60) day period a
Supplementary Code Authority consisting of the Executive Com-
mittee and two additional members representing the Industry at
large. These two members are to be elected by the members of the
Industry at a meeting called by the members of the temporary
Supplementary Code Authority upon ten days' notice sent by regis-
tered mail to all members of the Industry who may vote either in
lp:er'so1 or by proxy. The members of the Supplementary Code
Authority first elected shall serve until the next annual meeting of
the Institute in May. 1934, and thereafter the members of the Sup-
plementary Code Authority shall be elected at each annual meeting
of the Institute to serve until the following annual meeting.
The members of the Supplementary Code Authority shall be
elected in the following manner:
(a) One member, who shall be a member of the Industry, by fifty-
one per cent of all votes cast by all known members of the Industry
present in person or by proxy, each member to have one vote.
(b) One member who is not a member of the Institute by fifty-one
per cent. of all votes cast by all non-members of the Institute present
in person or by proxy. each member to have one vote.
(c) Nine members constituting the Executive Committee of the
Institute on which each sub-division of the Institute shall be entitled
to representation by two members and who shall be elected in accord-
ance with the provisions of the Constitution and By-Laws of the
A vacancy in the Classes (a) and (b) members of the Supplemen-
tary Code Authority may he filled by a fifty-one per cent vote of the
remaining members of the Supplementary Code Authority.
A vacancy in the Class (c) members of the Supplementary Code
Authority shall be filled hy a majority vote of the Executive Com-
mittee of the Institute.
Provided. however, that the right to vote. as set forth above, shall
be subject to the limitations provided in Section 4 of this Article.
In addition thereto the Administrator may appoint a member of
the Supplementary Code Authority who without vote shall serve
without expense to the Industry, unless the Supplementary Code
Authority agrees to pay such expense. The representative who may
be appointed by the Administrator shall be given reasonable notice
of and may sit at all meetings of the Code Authority.
SECTION 2. In order that the Supplementary Code Authority shall
at all times be truly representative of the Industry and in other re-
spects comply with the provisions of the Act, the Administrator may
prescribe such hearings as he may deem proper; and thereafter if
he shall find that the Supplementary Code Authority is not truly
representative or does not in other respects comply with the pro-
visions of the Act, may require an appropriate modification in the
method of selection of the Supplementary Code Authority.
SECTION 3. Any Association directly or indirectly participating in
the selection or activities of the Supplementary Code Authority shall
(1) impose no inequitable restrictions on admission to membership,
and (2) submit, to the Administrator true copies of its articles of
association, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership, or-
ganization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
SECTION 4. All members of the Industry are' subjectt to the juris-
diction of the Supplementary Code: shall be entitled to participate
in and share the benefits of the activities of the Supplementary Code
Authority; shall be entitled to vote in the selection of Class (a) mem-
bers of the Supplementary Code Authority as provided in Section I
of this Article; and shall pay their reasonable share of the expenses
of the administration of this Supplementary Code, such reasonable
share to be determined by the Supplementary Code Authority, sub-
ject to review by the Administrator, on the basis of volume of busi-
ness and,'or such other factors as may be deemed equitable by the
Supplementary Code Authority.
SECTION 5. Nothing contained in this Supplementary Code shall
constitute the members of the Supplementary Code Authority part-
ners for any purpose. Nor shall any member of the Supplementary
Code Authority be liable in any manner to anyone for any act of
any other member, officer, agent or employee of the Supplementary
Code Authority. Nor shall any member of the Supplementary Code
Authority, exercising'reasonable diligence in the conduct of his du-
ties hereunder, be liable to anyone for any action or omission to act
under this Supplementary Code, except for his own willful mis-
feasance or non-feasance.
SECTION 6. Sub-divis'ion Organizationi.-For the purpose of ad-
ministering this Supplementary Code all members of the Industry
shall be classified into the various sub-divisions herein above defined
and subject to the control of the Supplementary Code Authority.
SECTION 7. The Supplementary Code Authority shall have all the
powers and duties which shall be necessary and proper to enable it
to fully administer this Supplementary Code and to effectuate its
Without limitation to the foregoing or any other powers or duties
provided for in this Supplementary Code, the Supplementary Code
Authority shall have the following specific duties:
(a) To establish, after due notice and hearing, whether in their
opinion ainy member of the industry has committed a violation of
any provision of this Supplementary Code. In case any member of
the Industry makes a complaint to the Supplementary Code Author-
ity that any other member of the Industry is not complying with
any particular trade practice rule of this Supplementary Code, the
Supplementary Code Authority may require the Supervisory Com-
mittee of the sub-division affected to make a written report of the
facts with its recommendations to the Supplementary Code
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration of the Supplementary Code.
(c) To obtain from members of the Industry such information and
reports as the Supplementary Code Authority may require for the
administration of the Supplementary Code and to provide for sub-
mission by members of the Industry of such information and reports
as are necessary for the purposes recited in Section 3 (a) of the Act;
provided that nothing in this Code shall relieve any member of the
Industry of any existing obligations to furnish reports to any Gov-
ernment agency. No individual reports shall be disclosed to any
other member of the Industry or to anyone other than the Admin-
istrator or his lduly authorized representative except as hereinafter
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Supplementary
Code Authority of its duties or responsibilities under this Code and
that such trade associations and agencies shall at all times ba subject
to and comply with the provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Supplementary Code with
such other codes, if any, as may be related to this Industry.
(f) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Supplementary Code Authority and its activities, based upon
volume of business and/or such other factors as the Supplemen-
tary Code Authority may prescribe, subject to review by the
(g) To cooperate with the Administrator in regulating the use of
any NRA insignia solely by those members of the Industry who have
assented to, and are complying with, this Supplementary Code.
(h) To recommend to the Administrator further fair trade practice
provisions to govern members of the Industry in their relations with
each other or with other industries and to recommend to the Admin-
istrator measures for industrial planning, including stabilization of
(i) To furnish from time to time to the Basic Code Authority
designated in said Basic Code such information as may be required
to be furnished under the terms of the Basic Code.
SECTION 8. Any and all information furnished to the Secretary of
the Supplementary Code Authority or other person or committee
appointed by the Supplementary Code Authority, by a corporate
member of the Industry shall be subject to investigation to the extent
permitted by the Act for the purpose of verification by a disinterested
person or persons mutually agreed upon by the Supplementary Code
Authority and the member of the Industry or by a person or persons
nominated by the Supplementary Code Authority and approved by
the Administrator. The cost of such investigation shall be treated as
an expense of administration the Supplementary Code; provided,
however, that if upon such investigation any such information shall
be shown to have been incorrect in any material respect, such costs
shall be paid by the member of the Industry which furnished such
information, provided the said member has assented to the Supple-
mentary Code, and specifically to the provisions of this Section.
SErrro 9. All individual and private information received by the
Executive Secretary, appointee or committee from reports, or as a
result of investigation shall be held in strict confidence and not dis-
closed to any competitor or other persons outside the Secretary's office,
without the permission of the member of the Industry involved.
Provided, however, that such information may be disclosed to any
authorized governmental agency.
Provided, further, that when necessary in the hearing of a com-
plaint of a violation of this Supplementary Code, information result-
ing from an investigation pertinent to the particular complaint may
be disclosed to the Supplementary Code Authority or its appointee.
Provided, further, that in the event a complaint cannot be adjusted
by the Executive Secretary of the Supplementary Code Authority,
any confidential information required of any member of the Frit
Division, upon request shall be referred to a committee composed of
from one to three disinterested experts for decision and recommenda-
tion to the Administrator. The names of five experts satisfactory to
the members of the Frit Division are to be submitted to the Admin-
istrator, from whom he will select from one to three experts to con-
sider the complaint. Any expense of experts shall be paid by the
member of the industry so requesting the use of said experts.
Provided, further, that information pertaining to the reporting of
prices, terms and conditions may be disclosed to effectuate the pur-
poses of this Supplementary Code.
SECTON 10. If the Administrator shall determine that any action
of a Code Authority or agency thereof may be unfair or unjust or
contrary to the public interest., the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and for the consideration by such Code
Authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days' notice to him of intention to proceed
with such action in the original or modified form.
ARTICLE V-ACCOUNTING AND COSTING
The Supplementary Code Authority shall cause to be formulated
for each sub-division of the Industry an accounting system and
methods of cost finding and,'or estimating capable of use by all
members of each sub-division of the Industry. After such system
and methods have been formulated and approved by the Adminis-
trator, full details concerning them shall be made available to all
members of each sub-division of the Industry. Thereafter all mem-
bers shall determine and, or estimate costs in accordance with the
principles of such methods.
ArrICLE VI-SELLING BELOW ALLOWABLE COST
SEcwooN 1. No member of the Industry shall offer for sale, sell, or
exchange any product of the Industry manufactured by him, at a
price, or upon terms and conditions, which will result in the pur-
chaser paying for the goods received less than the allowable cost
thereof to the seller, determined in accordance with a uniform
method of estimating and costing above described; and provided
further, any member of the Industry may sell below his costs in order
that he may meet competitive prices filed in accordance with the
provisions of Article VII of this Supplementary Code, or to meet
competition from products of equivalent design, character, quality,
or specifications, manufactured outside the United States.
SECTION 2. When the Supplementary Code Authority determines
that an emergency exists in this Industry and that the cause thereof
is destructive price-cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplementary
Code, the Supplementary Code Authority may cause to be deter-
mined 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 approve, dis-
approve, 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 determined
at such prices or upon 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 Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
SECTION 3. Dropped lines, or seconds, or inventories which must
be converted into cash to meet emergency needs may be disposed of
by any member of the Industry, at any price and on any terms and
conditions, but only if such member of the Industry, not less than
ten (10) days before such disposal, has filed with the Supplementary
Code Authority, a statement in writing setting forth the fact of,
and reasons for, such proposed disposal.
ARTICLE VII-PRICE LISTS
(a) If and when the Supplementary Code Authority determines
that in any branch or subdivision of the Industry it has been the
generally recognized practice to sell a specified product on the basis
of printed 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, publish
and file with the Supplementary Code Authority a net price list,
or a price list and 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 Supplementary Code Author-
ity shall immediately send copies thereof to all known members of
the industry who manufacture such specified products. Such price
lists shall be available to all interested buyers at the office of the
Revised price lists and 'or discount sheets and/or all other condi-
tions of sale may be published and filed from time to time thereafter
with the Supplementary Code Authority by any member of the
Industry who manufactures such product, to become effective five
(5) days after receipt thereof by the Supplementary Code Authority.
Copies of such revised price lists and or discount sheets and/or all
other conditions of sale with notice of the effective date specified,
shall be immediately sent to all known members of the Industry who
manufacture such product, who are cooperating in this Supplemen-
tary Code, and shall be available to all interested buyers at the office
of the Executive Secretary, and any member of this Industry mniy
file if he so desires, to become effective upon the date when the re-
vised price list and/or discount sheet and/or all other conditions of
sale first filed shall go into effect, revisions of his price lists, and/or
discount sheets and 'or all other conditions of sale, establishing prices
or prices and discounts not lower or conditions of sale not more
favorable than those established in the revised price lists and/or
discount sheets and or all other conditions of sale first filed.
(b) Subject to the approval of the Administrator, if and when
the Supplementary Code Authority shall determine that in any
branch or subdivision of the Industry, not now selling its product
on the basis of price lists, with or without discount sheets, with
fixed terms of sale and payment, the distribution or marketing
conditions in said branch or subdivision are the same as, or similar
to, the distribution and marketing conditions in a branch or sub-
division of the Industry where the use of price lists, with or without
discount sheets and other fixed conditions of sale, is well recognized,
and that where the use of price lists, with or without discount
sheets, with other fixed conditions of sale should be put into effect
in such branch or subdivision, then each member of the Industry
manufacturing the product or products of such branch or subdivi-
sion shall within twenty (20) days after notice of such determi-
nation, and administrative approval publish and file with the
Supplementary Code Authority net price lists or price lists and
discount sheets, containing all other fixed conditions of sale, and such
price lists and/or discount sheets and/or other fixed conditions of
sale, may be thereafter revised in the manner hereinabove provided;
provided, however, that the Supplementary Code Authority shall
make no determination to place any product of the industry (not
now on a price list basis) on a price list basis as provided in this
S paragraph (b) of Article VII, unless the members of the sub-divi-
sion affected shall by two-thirds affirmatively vote consent that such
determination be made.
(c) No member of the Industry shall sell, directly or indirectly,
by any means whatsoever, any product of the Industry covered by
provisions of this Article VII at a price or at. discounts, or on other
conditions of sale different from those provided in his own current
net price lists, or price lists and discount sheets. Providedhowever,
that no member of the Industry shall be required to file with the
Suppleihentary Code Authority prices at which products are sold
to his own employees not for resale.
(d) Net price lists or price lists and discount sheets of all new
S products or additions to the line shall become effective immediately
upon same being first offered for sale to any classification of trade
: and shall be filed within five days thereafter.
(e) No member of the Industry shall sell any modification of
:" standard products at a price other than the published schedule
on standard products of equal design, rating and, or purpose except
'. Bee paragraph 2 of order approving this Code.
by filing price lists and discount sheets on such products
ARTICLE VIII-EXPORT TRADE
SECTION. 1. No provision of this Code relating to prices or terms
of selling, shipping or marketing, shall apply to export tra e or
sales or shipments for export trade.
SECTION 2. Subject to the approval of the Supplementary Code
Authority, the exceptions established by this section shall apply also
to sales or shipments of materials actually used in manufacture for
SECTION 3. Unless and to the extent that the Supplementary Code
Authority with the approval of the Administrator shall otherwise
determine, the sale of any product by any member of the Industry
for direct shipment. to the Philippines, Hawaii or Porto Rico or
theirr insular possessions of the United States of America shall not
be deemed export trade.
ARTICLE IX-QUOTATION POLICIES
SECTION 1. Every quotation shall show an itemized list of the unit
prices of the individual items required on the specification or request
for quotation. The total sum of the quotation shall not be less than
the sum total of the individual items comprising the quotation.
When a product consists of two or more parts which themselves are
shown as individual units in the published list prices of the members
of the Industry, the unit price of the combined product shall not be
less than the sum of the unit prices of the articles which comprise it.
SECTION 2. All quotations shall include a definite limit time for
acceptance, but in no case shall quotations be for a period longer
than 30 days from date of quotation, except in building construction
projects not to exceed 60 days.
ARTICLE X-RETURN OF PRODUCTS
No product of this Industry shall be accepted for credit or ex-
change at a financial loss to the member of the Industry where the
member has performed his part of the agreement of sale.
ARTICLE XI-UNFAIR TRADE PRACTICES
In addition to the unfair trade practices covered in Article V of
the Basic Code (excepting Section A), which are made a part hereof
the same as though repeated and set forth at length, and for all
purposes of this Supplementary Code, the following described acts
shall constitute unfair practices. Any member of the Industry who
shall directly or indirectly, through any officer, employee, agent or
representative, use or employ any of such unfair practices shall be
guilty of a violation of this Supplementary Code.
(a) Conbination sales.-No member of this Industry shall sell or
offer to sell commodities other than products of this Industry for
the purpose of influencing a sale, at prices below the invoice price plus
all incidental costs of such products. If and when the products of
this Industry are sold in combination with products of other Indus-
tries, the invoice must clearly show the unit price for all articles
(b) Contracts.-No member of the Industry shall make any sale or
contract of sale of any product under any description which does
Snot fully describe such product in terms customarily used in the
(c) Selling on consig.nment.-No member of the Industry shall
ship goods on consignment except under circumstances to be defined
by the Supplementary Code Authority, and approved by the Ad-
ministrator, where peculiar circumstances of the Industry require
(d) Substitution of materiol.-No employer shall use or substi-
tute material or make delivery of products on an order or contract
which does not conform to samples submitted or representations
made prior to securing the order and/or is superior or inferior in
quality to that specified in such order or contract, without making
the adjustment in the quoted price and clearly indicating the nature
of the substitution.
(e) Splitting commissiorns.-No member of the Industry shall con-
tinue to employ any salesman or agent. compensated in whole or in
part on a commission or bonus basis who shall pay or allow to any
purchaser any part of the commission or bonus earned by him in
connection with the sale of any product coming within the scope
of this Supplementary Code, or who shall violate or cooperate in the
violation of any provisions of this Supplementary Code applicable
to members of such Industry.
(f) Espionage of competitors.-No member of the Industry shall
attempt to secure confidential information concerning the business of
a competitor by a false or misleading statement or representation, by
S a false impersonation of one in authority, by bribery, or by any
other unfair method.
(g) Threats of latw &.it.-No member of the Industry shall pub-
lish or circulate unjustified or unwarranted threats of legal proceed-
ings which tend to or have the effect of harassing competitors or
intimidating their customers. Failure to prosecute in due course
shall be evidence that any such threat is unwarranted or unjustified.
(h) Itererrence with other' contracts.-No member of the Indus-
try shall attempt to induce the breach of an existing written con-
tract. between a competitor and his employee or customer or source
of supply; nor shall any such member interfere with or obstruct the
performance of such contractual duties or services.
(i) No member of this Industry shall offer for sale or sell any
products of this Industry classified as seconds unless such products
are conspicuously marked or branded as seconds.
No provision of this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to eliminate, op-
press, or discriminate against small enterprises.
SECTION 1. This Supplementary Code and all the provisions thereof
are expressly made subject to the right of the President, in accord-
ance with provisions of 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.
SECTION 2. This Supplementary Code, except as to provisions re-
quired by the Act, may be modified or amended on the basis of
experience or changes in circumstances, such modifications or amend-
ments to be based upon application by the Supplementary Code
Authority or other representative group within the Industry to the
Administrator and such Notice and Hearing as he shall specify and
to become effective as and be a part of this Supplementary Code on
approval by the President, and/or the Administrator.
ARTICLE XIV-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual costs
should be delayed, but when made, such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
ARTICLE XV-EFFECTIVE DATE AND DURATION
This Supplementary Code shall become effective at 12:01 o'clock
A.M., Eastern Standard Time, on the tenth day after it is approved
by the President and/or the Administrator and shall continue in
effect until June 16, 1935, or the earliest date prior thereto on which
the President shall, by proclamation, or the Congress shall, by joint
resolution declare that the emergency recognized by Section 1 of the
National Industrial Recovery Act, has ended.
Approved Code No. 84-Supplement No. 13.
Registry No. 1033-1-02.