Supplementary code of fair competition for the prison equipment manufacturing industry (a division of the fabricated met...

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Material Information

Title:
Supplementary code of fair competition for the prison equipment manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry), as approved on July 5, 1934
Portion of title:
Prison equipment manufacturing industry
Physical Description:
12 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Prisons -- Equipment and supplies -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1118-27."
General Note:
"Approved Code No. 84--Supplement No. 39."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004938379
oclc - 63655231
System ID:
AA00008045:00001

Full Text



Approved Code No. 84-Supplement No. 39 Registry No. 1118-27


NATIONAL RECOVERY ADMINISTRATION


SUPPLEMENTARY
CODE OF FAIR COMPETITION
FOR THE

PRISON EQUIPMENT

MANUFACTURING INDUSTRY
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)

AS APPROVED ON JULY 5, 1934


WE DO OUR PART


UNIV. OF FL LII.
DOCUMENTS DEPOT



U.S. DEPONITORY
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


e b Superintendent of Documents, Washington D.C.Price 5 cents
sr ale by the Superintendent of Documents, Washington, D.C. Price 5 cents


NP
L[':


Approved Code No. 84-Supplement No. 39


Registry No. 1118-27

























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.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, Mich: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 40S Federal Building.
lMeinphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis. Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.




-_7


Approved Code No. 84-Supplement No. 39

SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE

PRISON EQUIPMENT MANUFACTURING
INDUSTRY

As Approved on July 5, 1934


ORDER

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
PRISON EQUIPMENT 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
Fabricated 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 Prison Equip-
ment Manufacturing Industry, and hearing having been duly held
thereon; and the annexed report on said Supplementary Code, 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.
HUGH S. JOHNSON,
Administrator for Industrial Recoverty.
Approval recommended:
BARTON W. MURRAY,
Division Administrator.
WASHINGTON, D.C.,
July 5, 1934.
72197--829-24--84 l 1













REPORT TO THE PRESIDENT

THE PRESIDENT,
The White House.
SI: This is a report on the Supplementary Code of Fair Competi-
tion for the Prison Equipment Manufacturing Industry, a division
of the Fabricated Metal Products Manufacturing and Metal Finish-
ing and iMetal Coating Industry, the hearing having been conducted
thereon in Washington, D. C., June 5, 1934, in accordance with the
provisions of Title I of the National Industrial Recovery Act.

GENERAL STATEMENT
The Prison Equipment Manufacturing Industry being truly repre-
sentative of this division of the Fabricated Metal Products Manu-
facturing and Metal Finishing and Metal Coating Industry, has
elected to avail itself of the option of submitting a Supplementary
Code of Fair Competition, as provided for in Section 1 of Article VI
of the Basic Code, for the Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating Industry approved by you
on the second day of November, 1933.

RESUME OF THE CODE
Article I states tlhe purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Supple-
mentary Code.
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
Code.
Article IV establishes a Supplementary Code Authority consist-
ing of five (5) members to be elected by the members of the Industry
at a meeting called by the Temporary Supplementary Code Author-
ity, and gives the Administrator the authority to appoint one addi-
tional member without vote and provides 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 covers the selling below cost. provisions but does not
prohibit sales below cost to meet competition.
Article VII 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 VIII provides for bidding practices.
Article IX provides against monopolies and monopolistic
practices.









Article X contains the mandatory provisions contained in Sec-
tion 10 (b) and also provides for the submission of proposed amend-
ments to the Supplementary Code.
Article XI, recognizes that price increases be limited to actual addi-
tional increases in the seller's cost.
Article XII states the effective date and duration of this Supple-
mentary Code.
FINDINGS

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 tie 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 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 Industry normally employs not more than 50,000 em-
ployees; and is not classified by 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 Association is an industrial Association truly representa-
tive 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
permit 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
Supplementary Code.
For these reasons, therefore, I have approved this Supplementary
Code.
Respectfully,
A dLn;, istrator.
JULY 5, 1934.













SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE PRISON EQUIPMENT MANUFACTURING
INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY
ARTICLE I-PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Prison Equipment Man-
ufacturing 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
standards of fair competition for the Industry and shall be binding
upon every member thereof.
ARTICLE II-DEFINITIONS
SECTION 1. (a) The term Prison Equipment Manufacturing In-
dustry or the Industry ", as used herein, is defined to mean the
manufacturing and'or offering to sell, and,/or selling and 'or instal-
lation by the member of the Industry in whole or in part, of industry
products and or parts for use in connection therewith or incident
thereto.
(b) The term industry products ", as used herein, is defined to
mean and include cells, cell fronts, locking and operating devices,
locks, cell furnishings, windows, window guards, grilles, grating and
plate partitions and doors, and related specialties and parts of cor-
rective in-titution equipment for jails, prisons, reformatories, asy-
lums and other penal and, or corrective institutions, in which public
peace and safety require inmates to be confined and prevented from
escape by all possible mechanical safeguards.
SECTION 2. 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 Ad-
ministrator for Industrial Recovery.
SECTION 3. Tile term "' member of this Industry as used herein
includes but without limitation any individual, partnership, associa-
tion, corporation or other form of enterprise engaged in this Indus-
try either as an employer or on his or its own behalf in manufac-
turing, and. or offering to sell, and or selling and/or installation in
whole or in part of industry lpr(ducts.
SECTION 4. The term Basic Code as used herein is defined to
mean the Basic Code of Fair Competition for the Fabricated Metal







5

Products Manufacturing and Metal Finishing and Metal Coating
Industry as approved by the President of the United States on the
second day of November, 1933.
SECTION 5. The term employee as used herein includes any and
all persons engaged in the Industry, however compensated, except a
member of the Industry.
SECTION 6. The term employer as used herein includes anyone
: by whom any such employee is compensated or employed.
SECTION 7. The term Supplementary Code Authority" as used
herein means the agency which is to administer this Supplementary
Code as hereinafter provided.
SECTION 8. The term Supplementary Code Committee" as used
herein is defined to mean the committee authorized to present this
Supplementary Code.
SECTION 9. The term Confidential Agent." as used herein is
defined to mean the impartial agency designated by the Supple-
mentary Code Authority.
SECTION 10. The term "Association is defined to mean the Cor-
rective Institution Equipment Association or its successor.
SECTION 11. The term Federation" as used herein is defined to
mean the Fabricated Metal Products Federation or its successor.

ARTICLE III-ERILOYMENT 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 provi-
sions 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 incor-
porated herein and made a part hereof as the wage, hour and labor
provisions of this Supplementary Code.
ARTICLE IV-ORGANIZATION AND ADMINISTRATION

SECTION 1. During the period not to exceed sixty (60) days follow-
ing the effective date of this Supplementary Code, the Supple-
mentary Code Committee of the Industry shall constitute a tem-
porary Supplementa ry Co.le Authority until the Supplementary Code
Authority is elected. There shall be constituted within the sixty-
day period a Supplementary Code Authority consisting of five (5)
members to be elected by the members of the Industry, at a meeting
called by the Temporary Supplementary Code Authority. The
members of the Supplementary Code Authority first elected shall
serve until the following annual meeting of the Association, and
thereafter members of the Supplementary Code Authority shall be
elected at each annual meeting of the Industry to be held at the time
and place of each annual meeting of the Association to serve for
one year and until their successors are elected and qualified; ten days'
advance notice of all meetings to be held hereunder shall be sent
by registered mail to all members of the Industry, whose names may
be ascertained after diligent search, who may vote either in person








or by proxy. 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 a
majority vote of all members of the Industry present in person or
by proxy, each member to have one vote.
(b) Four members who shall be members of the Industry and also
members of the Association, by a fifty-one percent vote of the mem-
bers of the Industry, present in person or by proxy, weighted on the
basis of one vote for each member and one additional vote for each
$100,000 of annual sales of industry products averaged over the pre-
ceding five calendar years reported to the Supplementary Code Au-
thority. Provided, however, that no one member may cast more
than 20 percent of the total number of votes cast.
A vacancy in the membership of the Supplementary Code Au-
thority shall be filled by a majority vote of the remaining members
of the Supplementary Code Authority, provided, however, that the
member of the Supplementary Code Authority who is chosen to fill
such vacancy shall be selected from the class of membership in which
the vacancy occurred.
In addition thereto the Administrator may appoint a member of
the Supplementary Code Authority who shall be without vote and
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 Supplementary Code
Authority.
SECTION 2. Any trade association directly or indirectly participat-
ing in the selection or activities of the Supplementary Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
shall use due diligence in submitting to the Administrator true copies
of its Articles of Association, By-Laws, regulations and any amend-
ments when made thereto, together with such other information as
to membership, organization, and activities as the Administrator
may deem necessary to effectuate the purposes of the Act.
SECTION 3. 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 make an appropriate modification of the
Supplementary Code Authority.
SECTION 4. It being found necessary in order to support the ad-
ministration of this Supplementary Code and to maintain the
standards of fair competition established hereunder and to effectuate
the policy of the Act, the Supplementary Code Authority is
authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Supplementary Code.
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
(1) an itemized budget of its estimated expenses for the foregoing








purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
Industry.
(c) After such budget and basis of contribution has been approved
by the Administrator, to determine and obtain equitable contribu-
tion as above set forth by all members of the Industry, and to that
end, if necessary, to institute legal proceedings therefore in its own
name.
Each member of the Industry shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Supplementary
Code' Authority, determined as hereinabove provided, and subject
to rules and regulations pertaining thereto issued by the Adminis-
trator. Only members of the Industry complying with the Sup-
plementary Code and contributing to the expenses of its adminis-
tration as hereinabove provided, shall be entitled to participate in
the selection of members of the Supplementary Code Authority or
to receive the benefits of any of its voluntary activities or to make
use of any emblem or insignia of the National Recovery Admin-
istration.
The Supplementary Code Authority shall neither incur nor pay
any obligations in excess of the amount. thereof as estimated in its
approved budget, except upon approval of the Administrator, first
obtained, and no subsequent budget, shall contain any deficiency item
for expenditures in excess of prior budget estimates except those
which the Administrator shall have so approved.
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
duties hereunder, be liable to anyone for any action or omission to
act under this Supplementary Code, except for his own willful
malfeasance or non-feasance.
SECTION 6. The Supplementary Code Authority shall also from
time to time furnish to the Basic Code Authority, designated in
said Basic Code, such information as may be required to be furnished
under the terms of said Basic Code.
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
purposes.
Without limitation to the foregoing or any other powers or duties
provided for in this Supplementary Code, this Supplementary Code
Authority shall have the following further powers and duties:
(a) To adopt by-laws and rules and regulations for, and keep
records of its procedure and the administration of this Supple-
mentary Code.
(b) To obtain from members of the Industry, through its Confi-
dential Agent, such information and reports as required for the
administration of this Supplementary Code. In addition to infor-
mation required to be submitted to the Supplementary Code Au-







8

thority, the members of the Industry, 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; pro-
vided that nothing in this Supplementary Code shall relieve any
member of the Industry of any existing obligation to furnish reports
to any Governmental Agency. No individual report shall be dis-
closed to any other member of the Industry or any other party
except to such other Governmental Agencies as may be directed by
the Administrator.
(c) 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 Supple-
mentary Code and that trade associations and agencies shall at all
times be subject to and comply with the provisions hereof.
(d) To appoint a Trade Practice Committee which shall meet
with the trade practice committees appointed under such other codes
as may be related to the Industry for the purpose of formulating
fair practices to govern the relationships between employers under
this Supplementary Code and under such others to the end that
such fair trade practices may be proposed to the Administrator as
amendments to this Supplementary Code and such other codes.
(e) To make recommendations to the Administrator for the coor-
dination of the administration of this Supplementary Code with
such other codes, if any, as may be related to or affect the members
of the Industry.
(f) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the Industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including stabili-
zation of employment.
SECTION 8. To the extent permitted by the Act and subject to
such rules and regulations as the Administrator may prescribe, any
or all information furnished to the Supplementary ('ode Authority
by any member of this Industry pursuant, to the provisions of this
Supplementary Code shall be subject to verification by an impartial
agency agreed upon by the Supplementary Code Authority, and the
member of the Industry in question, and, failing such agreement
such impartial agency shall be selected by the Administrator, which
impartial agency may check so much of the pertinent books, accounts
and records of such members of the Industry as may be required to
verify the accurnac of the information so furnished.
SECTION 9. To the extent permitted by the Act, and subject to
such rules and regulations as the Administrator may prescribe, the
Supplementary Code Authority shall have the power to investigate
all complaints. filed with it by one member of the Industry against
another member of the Industry. In the event of complaint being
registered against any corporate member of the Industry, alleging
a violation of this Supplementary Code, the Supplementary Code
Authority may cause an investigation to be made by a person mu-
tually agreed upon by the Suplplementary Code Authority and the
member of the Industry against whom the complaint is filed, or,




Mh7

9
if they are unable to agree within a reasonable time, by a disinter-
ested person appointed by the Administrator ulon request by the
Supplementary Code Authority. The Supplementary Code Au-
thority may require the member complained against to file with such
investigator, within such reasonable time after receipt of a copy of
the complaint, if the Supplementary Code Authority shall deter-
mine, an answer to such complaint accompanied by supporting data.
Both answer and data shall be verified by affidavit. The inves-
tigator shall examine so much of the pertinent books and records
of such member as may be required to verify the statements con-
tained in said answer and,'or the accuracy of the data supporting
such statements. If the matter cannot thereafter be satisfactorily
adjusted within the Industry, the facts may be placed before the
Basic Code Authority to be presented to the Administrator for
such procedure as he. may deem advisable under the Act.
SECTION 10. If the Administrator believes that any action of the
Supplementary Code Authority or any agency thereof is 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. Further action by such
Supplementary Code Authority or agency regarding the matter
complained of may be taken if approved by the Administrator but
shall not be taken if disapproved by the Administrator within thirty
days of notice to him of intention to proceed with such action.
SECTION 11. Every employer shall provide for the safety and
health of employees during the hours and at the places of their
employment. Standards for safety and health shall be submitted by
the Code Authority to the Administrator within six months after
the effective date of the Supplementary Code.
ARTICLE V-ACCOUNTING, COSTING AND ESTIMATING
SECTION 1. The Supplementary Code Authority shall cnuwe to be
formulated an accounting system and methods of co.t finding and/or
estimating capable of use by all members of the Industry. After
such system and methods have been formulated and approved by
the Administrator full details concerning them shall be made avail-
able to all members of the Industry. Thereafter all members of
the Industry shall determine and, or estimate costs in accordance
with the principles of such methods.
SECTION 2. When the Administrator 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 mainte-
nance of the provisions of this Supplementary Code, the Supple-
mentary Code Authority may cause to be determined the lowest rea-
sonable cost of the products of this Industry, such determination to
be subject to such notice and hearing as the Administrator may re-
quire. The Administrator may approve, disapprove, or modify the
determination. Thereafter, during the period of the emergency, it
shall be an unfair trade practice for any member if the Industry
to sell or offer to sell any product of the Industry for which the
lowest reasonable cost has been determined, at such prices or upon
such terms or conditions of sale that the buyer will pay less therefore
than the lowest reasonable cost of such products.







10

When it appears that conditions have changed, the Supplementary
Code Authority or the Administrator, upon its or his own initiative,
or upon the request of any interested party, may cause the
determination to be reviewed.

ARTICLE VI-SELLINO BELOW COST
No member of this Industry shall sell or exchange or offer to sell
or exchange any products of this Industry at a price or upon terms
and conditions, which will result in the purchaser paying for the
goods received, less than the cost. thereof to the seller, determined
in accordance with a uniform method of costing and/or estimating
above described in Article V; provided, further, however, that a
member of the Industry may sell below his own cost to meet competi-
tion from products of equivalent design, quality, or specifications,
provided the competitor is not violating this Supplementary Code,
and provided that when a member of the Industry sells, or wishes to
sell, below his own cost to meet such competition, he shall so report
to the Supplementary Code Authority and shall cite the competition
which caused him to take this action.

ARTICLE VII-UNFAIR TRADE PRACTICES
In addition to the Unfair Trade Practices covered by Article V of
the Basic Code except Section A, B, F and G thereof as though
herein 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.
RULE 1. False Advertising.-No member of the Industry shall
publish advertising (whether printed, radio, display or of any other
nature), which is misleading or false in any material particular, nor
shall any member orally or in any other way misrepresent any
goods (including but without limitation its use, grade, quality,
quantity, origin, size, substance, character, nature, finish, material,
content or preparation) or credit terms, values, policies, services, or
the nature or form of the business conducted.
RULE 2. Secret Rebates.-No member of the Industry shall se-
cretly offer or make to any customer and or customer's agent any
payment or allowance of a rebate, refund, commission, credit, un-
earned discount or excess allowance, whether in the form of money
or otherwise, nor shall a member of the Industry secretly offer or
extend to any customer any special service or privilege not. extended
to all customers of the same class, for the purposes of influencing
a sale.
RULE 3. Alternate Proposals.-No member of the Industry shall
submit an alternate and, or revised proposal unless the privilege of
alternate and/or revised proposals is extended to all bidders who
have qualified and who have fully complied with all plan, specifica-
tion and bidding requirements at the time of opening the bids.
RuLE 4. Substitution. of Materials.-No member of the Industry
shall depart from the plans and, or specifications, for the purpose









and/or with the effect of misleading the buyer as to the grade,
quality, or quantity of products offered or sold, or by the quotation
of any substitute material without clearly identifying the nature of
such substitute material.
RULE 5. Credit Terns.-No member of the Industry shall fail to
charge the legal rate of interest on all delinquent accounts and
balances.
ARTICLE VIII-BIDDING PRACTICES

SECTION 1. It shall be the policy of members of the Industry to
bid directly to Federal and State Governments and Governmental
Sub-divisions thereof on all purchased and, or installations of
Industry products.
SECTION 2. The following acts shall constitute unfair trade prac-
tices and shall be violations of this Supl.plemnentary Code:
(a) Failure to comply fully and rigidly with all plan, specifica-
tion and, or bidding requirements:
(b) Failure to protest to tle awarding authorities the opening of
any irregular bid and 'or proposal not. in full compliance with the
plan, specification and or bidding requirements:
(c) Failure by a member to file with the Confidential Agent within
twenty-four (24) }hours after the time set for opening, a true copy of
each bid submitted by him.

ARTICLE I -MONOPOLIES

No provision of this Supplementary Code shall be so applied as to
permit monopolies or monoii,)polistic practices, or to eliminate, oppress
or discriminate against small enterprises.

ARTICLE X-M()DIFICATIthNS

SECTION 1. As lproided in Sub-.scti(,n (b) of Section 10 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
said Act.
SECTION 2. This Suppllementary Code, except as to provisions
required by the Act, may be modified or amended on the basis of
experience or changes in circumstances, such Inodifications or amend-
ments to be based upon application by the Suppl)i.ementary Code
Authority or other representative group within the Industry to the
Administrator and such Notice and Hearing as lie .-hall specify and
to become effective and be a part of this Suppllementary Code on
approval by the President, and or the Administrator.

ARTICLE XI-PRICE INCREASES

Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices O(f goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet. individual costs
should be delayed, and when made, such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.







12 i

ARTICLE XII--EFFECTm DATE AND DURATION I

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 shall continue in effect until June 16, 1935, or
the earliest date prior thereto on which the President shall, by procla-
mation, or the Congress shall, by joint resolution declare that the
emergency recognized by Section I of Title I of the National
Industrial Recovery Act, has ended.
Approved Code No. S4--Supplement No. 39.
Registry No. 1118-27.






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