A. NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
)CK AND ORE CRUSHER
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division of the Machinery and Allied Products Industry)
AS APPROVED ON JUNE 11, 1934
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Approved Code No. 347-Supplement No. 17
SUPPLEMENTARY CODE OF FAIR COMPETITION
ROCK AND ORE CRUSHER INDUSTRY
As Approved on June 11, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ROCK AND ORE
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of a Sup-
plemental Code of Fair Competition for the Rock and Ore Crusher
Subdivision of Machinery and Allied Products Industry, and hear-
ings having been duly held thereon and the annexed report on
said Supplemental Code, containing findings with respect thereto,
having been made and directed to the President.
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recov-
ery, pursuant to authority vested in me by Executive Orders of
the President, including Executive Order No. 6543-A, dated Decem-
ber 30, 1933, and otherwise; do hereby incorporate by reference
said annexed report and do find that said Supplemental Code com-
plies in all respects with the pertinent provisions and will promote
the policy and purposes of said Title of said Act; and do hereby
order that said Supplemental Code of Fair Competition be and it
is hereby approved subject to the following conditions:
1. That the provisions of Article VIII, Section (a) insofar as
they prescribe a waiting period between the filing with the Code
Authority (or such agency as may be designated in the Supple-
mental Code) and the effective date of price lists, as originally filed
and/or revised price lists or revised terms and conditions of sale, be
and they hereby are stayed pending my further order.
2. That the provisions of the second paragraph of Article VIII,
Section (d) be and they hereby are stayed pending the submission
of satisfactory evidence concerning distribution of the products of
the Subdivision to the Administrator.
66509 ---657-100-34 (11
3. That the provisions of Article IX, Sections 5 to 10 inclusive;
be and they hereby are stayed for a period of fifteen (15) days;
then to become effective unless I, by my further order otherwise
direct; within which time cause may be shown, if any there be, why
the above provisions should not become effective; and that the Tem-
porary Code Authority send notice of the stay of these provisions
and of the opportunity to show cause why they should not become
effective to all known employers of the Subdivision.
HUGH S. JOHNsoN,
Administrator for Industrial Recovery.
A. R. GLAXcY,
June 11, 1934.
REPORT TO THE PRESIDENT
The White House.
SIm: This report relates to the Supplemental Code of Fair Com-
petition for the Rock and Ore Crusher Subdivision of Machinery
and Allied Products Industry as proposed by the Rock and Ore
A public hearing was held in Washington, D.C., on December 4,
1933 and reconvened on December 21, 1933. The public hearings
were conducted in accordance with the provisions of Title I of the
National Industrial Recovery Act and all persons were given full
opportunity to be heard.
The Rock and Ore Crusher Subdivision, being truly representa-
tive of the manufacturers of the products defined in Article II of
the Supplemental Code, has elected to formulate and submit a
Supplemental Code of Fair Competition as provided in the second
paragraph of Article I in the Code of Fair Competition for the
Machinery and Allied Products Industry, approved by you on the
seventeenth day of March, 1934.
The Subdivision includes the design, manufacture, contracting for
or subletting the manufacturing for the sale of rock, gravel, and
ore crushers for coarse and secondary reduction and includes spare,
repair and replacement parts thereof, and includes screening and
washing machinery, the sale (but not the manufacture) of conveying
machinery, and any other accessory equipment and/or materials
when sold with and incidental to crushing equipment, and includes
all those so engaged; provided that the Subdivision shall not in-
clude crushers and associated machinery when mounted in portable
units-also excluding hammer-mills.
Statistical material bearing on this Subdivision was obtained from
the code application submitted by the Rock and Ore Crusher Asso-
ciation and from National Recovery Administration questionnaires
sent to members of the Subdivision. The above mentioned asso-
ciation claims to represent 90 per cent of the entire Subdivision
measured by dollar volume of business.
Annual sales in 1932, according to the association, declined to
nearly one-fourth the 1929 level. In 1929 sales were reported at
$6,344,000 and in 1932, $1,485,000. Sales for the first half of 1933
were $557,000, or nearly one-half the 1932 level, consequently it is
quite probable that sales in 1933 will not fall below the 1932 level.
Estimates showing employment for the entire Subdivision, submit-
ted by the Trade Association, indicate that employment declined
from 766 in 1930 to 313 in 1933, or 59.1 per cent.
No figures are available on the full-time hours per week for the
entire Subdivision. According to a 50 per cent sample compiled
from National Recovery Administration questionnaires, the Sub-
division worked in June, 1929 two shifts of 8 to 11 hours per day,
and in June and October, 1933, one shift of 8 to 9 hours and 7 to 9
hours per day, respectively, with part-time of less than six hours per
Average hours per week were reported to be 55.2 in June, 1929;
33.3 in June, 1933; and 32.5 in October, 1933. In October, 1933 the
average hours were 41.1 per cent less than the June, 1929 average.
The effect of the 40-hour provision with production at more
normal levels may be estimated on a basis of the 1930-1931 average
of total man-hours per week divided by the number of hours pre-
scribed by the code. After 1929, man-hours declined steadily from
38,470 to a minimum of 13,330 in 1932, or 65.4 per cent. Since then
man-hours have increased to 19,430, or 45.8 per cent.
If it is assumed that the 25,275 average man-hours for 1930-1931
are representative of the volume of production for those years, and
a reasonable measure of man-hour requirements in a more normal
period, the adoption of the 40-hour week would require a force of
approximately 630 employees, or 90 per cent of the 1929 working
However, owing to the impossibility of all employees of the Sub-
division working the maximum 40 hours, the average work-week
will be shorter, say 36 assumed effective hours, and the employment
correspondingly greater, viz: 700 workers will be required to produce
the 1930-1931 volume.
The minimum wage provisions proposed for the Subdivisions
which are operating under the Code of the Machinery and Allied
Products Industry are based on a flat minimum hourly rate of 32
cents per hour for the South and the following city population dif-
ferentials for all other section of the United States:
Over 50,000 population, 40 cents per hour.
Over 10,000 to 50,000 population, 38 cents per hour.
10,000 population and under, 36 cents per hour.
In addition to the minimum wage rates shown above, the Code
provides that women engaged in substantially the same work as
men shall receive the same rate of pay as such men employees; that
the minimum wage for women employees engaged in plant opera-
tions shall be not less than 87.5 per cent of the proper rate for the
locality in which employed as specified; and that the minimum in
the South shall be not less than 32 cents per hour.
Estimated number of factory workers receiving less than designated hourly
Distribution of factory
workers receiving less
than the minimum, re-
Proposed minimum hourly rates gardless of location
40 cents (other U.S.)..... ... ..-.. ..-- ---........................ 28.9 77
38 cents (other U.S.-)..- --.---_--- -.. --.~ -..... .. ----. ----.......... 26.4 70
36 cents (other U.S.)...----------.. ----... -- --.....................--------- 24.0 64
82 cents (South).----.....----. ----..-------...........---..... ...-- ---- 10.7 29
Distributions of the number of factory workers receiving classified
rates in the specified areas are not available. Consequently, it is only
possible to estimate the approximate number of factory workers who
will receive the benefit of the proposed minimum hourly rates, re-
gardless of location, on the basis of the number of factory workers
receiving less than the designated hourly rates as of June 15, 1933.
Based on the distribution as of June 15, 1933 and on the specified
percentages of the number of factory workers receiving less than
the designated rates shown in the above table, the adoption of the
proposed minimum rates will probably cause an increase in factory
payrolls. The estimated increase as of June 15, 1933, regardless of
location of the workers, will probably, under the most favorable con-
ditions, not exceed five per cent assuming only upward adjustment
in the brackets below the 40-cent minimum and no change in man-
RESUME OF SUPPLEMENTAL CODE
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment provi-
sions of the National Industrial Recovery Code of the Machinery
and Allied Products Industry, as approved by you, and as from time
to time amended.
Article IV provides for the adoption of Articles II, VI, VIII and
IX of the National Industrial Recovery Code of the Machinery and
Allied Products Industry, in accordance with the conditions of this
Article governing their adoption.
Article V provides for the establishment of a Code Authority
and defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and/or estimating.
Article VII provides that no products of the Subdivision shall be
sold or exchanged below a reasonable cost when the Code Authority
determines that an emergency exists.
Article VIII provides for methods of setting up, revising and filing
price lists and discount sheets and terms of sale and payment.
Article IX sets forth trade practices for the Subdivision.
Article X states that no provision of this Supplemental Code re-
lating to pricing and marketing shall apply to export sales as defined
by the term Export" in this Article.
Article XI provides that this Supplemental Code and all the pro-
visions thereof are expressly made subject to the right of the Presi-
dent, in accordance with Subsection (b) of Section 10 of the Act,
from time to time to cancel or modify any order, approval, license,
rule or regulation issued under said Act. Provision is also made
that modifications may be submitted by the Code Authority to the
Administrator for approval.
Article XII. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or monopolistic practices, or to
eliminate, oppress, or discriminate against small enterprises.
Article XIII states the effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to me on
said Supplemental Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the 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 supervision,
by eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000
employees; and is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
applicant association is an industrial association truly representative
of the aforesaid Subdivision; and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not
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 Supplemental
Code, provided that certain provisions relating to price publication,
trade practices, and Article VIII, Section (e) are stayed, as stated
in the order.
HUGH S. JOHNSON,
JUNE 11, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE ROCK AND ORE CRUSHER INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the Rock and Ore Crusher
Subdivision of the Machinery and Allied Products Industry, and
together with the Code of Fair Competition for the Machinery and
Allied Products Industry to which it is a Supplement, shall be
the standard of fair competition for this Subdivision, and shall be
binding on each employer therein.
"Applicant" means the Rock and Ore Crusher Association, a
trade organization, all members of which are engaged in the manu-
facture for sale of the products of the Rock and Ore Crusher Sub-
division of the Machinery and Allied Products Industry, which
organization is truly representative of this Subdivision.
"Industry" means the Machinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the Presi-
dent, March 17, 1934, and as such definition may from time to time
Subdivision" means the Rock and Ore Crusher Subdivision of
the Machinery and Allied Products Industry as defined and set forth
in Paragraph (2W) of Article II of the Code of Fair Competition
for the Machinery and Allied Products Industry as follows:
Rock and Ore Crusher Subdivision means the design, manufac-
ture, contracting for"or subletting the manufacturing for the sale
of rock, gravel, and ore crushers for coarse and secondary reduction
and includes spare, repair and replacement parts thereof, and in-
cludes screening and washing machinery, the sale (but not the man-
ufacture) of conveying machinery, and any other accessory equip-
ment and/or materials when sold with and incidental to crushing
equipment, and includes all those so engaged; provided that the
Subdivision shall not include crushers and associated machinery
when mounted in portable units--also excluding hammermills."
"Code" means the Code of Fair Competition for the Machinery
and Allied Products Industry, as approved by the President, and
as from time to time amended.
"Person" means a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
Employer" means any person engaged in this Subdivision of
the Industry, either on his own behalf or as an employer of labor.
Employee" means any one who is employed in the Subdivision
by any such employer.
The Act" means Title I of the National Industrial Recovery Act.
The President" means thi President of the United States.
"The Administrator" means the Administrator for Industrial
Basic Code Authority" means the Code Authority for the
Machinery and Allied Products Industry as constituted by the Code.
Code Authority means the Code Authority constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
"Group Code Authority" means the Code Authority for any
group or classification of products within this Subdivision, consti-
tuted under the authority of Article V of this Supplemental Code.
a Publish" means to make available to the public.
Principles means all essential characteristics.
ARTICLE III-EMPLOYMENT PROVISIONS
The following Articles of the Code, viz: Article III, Working
Hours"; Article IV, "Wages"; and Article V, General Labor
Provisions ", are hereby made a part of this Supplemental Code,
with the same effect as if they were written into this Supplemental
ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Code, viz: Article II, Definitions ";
Article VI, "Administration ", to the extent that they shall be appli-
cable to this Supplemental Code as such or as it may hereafter be
administered as an autonomous Code; Article VIII, "Modifications
and Termination"; and Article IX, Withdrawal"; are hereby
made a part of this Suplemental Code with the same effect as if they
were written into this Supplemental Code.
ARTICLE V-ORGANIZATION AND ADMINISTRATION
To administer and supervise, and facilitate the performance of the
provisions of this Supplemental Code, there is hereby established a
"Code Authority ".
(a) The Code Authority for this Subdivision shall consist of
(1) The Executive Committee of the ROCK AND ORE CRUSH-
ER Association, consisting of not less than four and not more than
(2) One additional member to be elected in any fair manner, with
the approval of the Administration, by employers in this Subdivision
not members of the Applicant, who are cooperating in this Supple-
mental Code, as described in Section (e) hereof, if so desired by such
(3) The Administrator may, at his discretion appoint one addi-
tional member (without vote and without expense to the Subdivi-
(b) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submit to the Administrator true copies of its articles of association,
by-laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
(c) In order that the Code Authority shall at all times be truly
representative of the Subdivision and in other respects comply with
the provisions of the Act, the Administrator may provide such
-hearings as he may deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code Au-
thority, or any Group-Code Authority.
The Code Authority may adopt rules and regulations for its pro-
cedure and employ such personnel as it may deem necessary.
(d) Any employer in this Subdivision shall be eligible for mem-
bership in the Rock and Ore Crusher Association.
(e) Any employer in this Subdivision shall be entitled to vote,
subject to the provisions of Section (a) hereof, at the election of,
and share in the benefits of the activities of the Code Authority and
may participate in any endeavors of the Code Authority, in the
preparation of any revisions of, or additions or supplements to,
this Supplemental Code, by paying his proper pro rata share of
the reasonable cost of creating and administering it, as determined
by the Code Authority, such vote of employers in this Subdivision
to be determined subject to the provisions of Section (a) hereof,
by a vote of employers who are at that time engaged in manufac-
turing such product, and are at that time cooperating in this Code,
as above described in this Section (e) of this Article V, cast con-
currently in each of the two. following methods:-(1) By one vote of
each employer. (2) By vote of employers weighted on the basis
of one vote for each $25,000 of sales booked of such product of said
employers who are at that time engaged in manufacturing such
products, made in the preceding five calendar years, as reported to
the Code Authority of this Subdivision. Each employer shall be
entitled to at least one such vote.
Except as otherwise provided in this Code any action taken at
any meeting of employers shall be by a majority vote cast and
computed in each of the two methods hereinabove provided.
(f) Employers in this Subdivision having a common interest and
common problems, may be grouped by Code Authority for adminis-
trative purposes into various Group Subdivisions, or product
In each Group Subdivision, or product classification, there may
be a Group-Code Authority approved, or appointed, by Code Au-
(g) If formal complaint is made to Code Authority, that pro-
visions of this Supplemental Code have been violated by any em-
ployer, the Code Authority or proper Group-Code Authority, may
cause such investigation or audit to be made, to the extent per-
mitted by the Act, as may be deemed necessary. If such investiga-
tion is made by Group-Code Authority, it shall report the results
of such investigation or audit to Code Authority for action.
Unless Basic Code Authority shall take jurisdiction, the Code
Authority shall have the right to investigate to the extent per-
mitted by the Act, and analyze any transaction coming under the
scope of this Supplemental Code, on which any unfair competition
is alleged, to show evidence of any violation of this Supplemental
Code, to report any such alleged violation to the proper authorities
ARTICLE VI-AccOUNTING AND COSTING
The Code Authority shall cause to be formulated an accounting
system and methods of cost finding and/or estimating capable of use
by all employers of the Subdivision. After such system and methods
have been formulated, full details concerning them shall be made
available to all employers. Thereafter all employers shall deter-
mine and/or estimate costs in accordance with the principles of such
ARTICLE VII-SELLING BELOW REASONABLE COST
(a) When the Code Authority has reason to believe that an emer-
gency exists as to any product or products of the Subdivision, and
that the cause thereof is destructive price-cutting such as to render
ineffective or seriously endanger the purposes or the maintenance
of the provision of this Supplemental Code, the Code Authority may
cause an investigation of costs and pricing to be made by an impar-
tial agency in order to determine the existence of the emergency and
the Code Authority may cause to be determined the lowest reasonable
cost of the product or products of this Subdivision, such determina-
tion to be subject to such notice and hearing as the Administrator
may require. The Administrator may approve, disapprove, or mod-
ify the determination. Thereafter, during the period of emergency,
no employer of the Subdivision shall sell or offer to sell any products
of the Subdivision for which the lowest reasonable cost has been
determined at such prices or upon such terms or conditions of sale
that the buyer will pay less therefore than the lowest reasonable cost
of such products.
When it appears that conditions have changed, the Code Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
ARTICLE VIII-PRICE LISTS
(a) If and when the Code Authority of this Subdivision deter-
mines that in any branch or group of the Subdivision it has been
the generally recognized practice to sell a specified product on the
basis of net price lists, or price lists with discount sheets, and fixed
terms of sale and payment, each employer shall, within ten (10)
days after notice of such determination, file with the Code Author-
ity 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, for such
specified product, and the Code Authority shall immediately pub-
lish and send copies thereof to all known employers who are coop-
erating in this Supplemental Code as described in Section (e) of
Article V hereof.
Revised price lists and/or discount sheets and/or terms of sale
and payment for such product may be filed from time to time there-
after with the Code Authority by any employer, but such revised
price lists and/or discount sheets and/or terms of sale and payment
shall be filed with the Code Authority ten (10) days in advance of
the effective date. Copies of such revised price lists and/or discount
sheets and/or terms of sale and payment, for such product, with
notice of the effective date specified, shall be immediately published
and sent to all known employers who are cooperating in this Supple-
mental Code as described in Section (e) of Article V hereof, any of
whom may file, if he so desires, to become effective upon the date
when the revised price list/or discount sheet and/or terms of sale
and payment first filed shall go into effect, revisions of his price lists
and/or discount sheets and/or terms of sale and payment establish-
ing prices or prices and discounts not lower or terms of sale and
payment not more favorable than those established in the revised
price lists and/or discount sheets and/or terms of sale and payment
first filed. Nothing in the foregoing shall constitute a limitation
upon the right of any employer to file revised lists fixing his own
prices, discounts and/or terms of sale and payment, which prices
and discounts may be either more or less favorable than those con-
tained in any other price list, to be effective as provided in the first
sentence of this paragraph.
(b) If and when the Code Authority shall determine that in any
branch or group of the Subdivision 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 group are the same as, or similar to, the distribu-
tion or marketing conditions in a branch or group of the Subdivision
where the use of price lists, with or without discount sheets,
and/or fixed terms of sale and payment, is well recognized, and that
a system of selling on net price lists or price lists and discount
sheets with fixed terms of sale and payment for such product should
be put into effect in such branch or group, then each employer of
such branch or group shall within ten (10) days after notice of
such determination, file with the Code Authority net price lists or
price lists and discount sheets, containing fixed terms of sale and
payment, showing his current prices and discounts and terms of sale
and payment, and such price lists and/or discount sheets and/or
terms of sale and payment may be thereafter revised in the manner
hereinabove provided; provided, however, that the Code Authority
shall make no determination to place any product of the. Subdivision
(not now on a price list basis) on a price list basis, as provided in
this paragraph (b) of Article VIII, unless the employers who are at
that time engaged in manufacturing such product and are at that
time cooperating, have given their affirmative consent to such deter-
mination. The eligibility requirements, method and effect of such
voting shall be the same as provided in section (e) of Article V.
Each employer shall prepare and shall furnish the Code Authority
for distribution with such number of copies of his price lists and/or
discount sheets and/or terms of sale and payment as Code Authority
(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions of
this Article VIII at a price or at discounts, or on terms of sale and
payment, different from those provided in his own current net price
lists, or price lists and discount sheets, provided that nothing in the
above shall prevent an employer from adding to his own price and/or
price list and discount sheets by increasing his job price to include
unusual selling, engineering, servicing, financing, financial risks, or
other similar special charges (except as provided in Article VII
above) provided, however, that in the event of an employer quoting
a higher price than the price published in his own price list and/or
price list and discount sheets, to take care of unusual selling, engi-
neering, servicing, financing, financial risks, or other similar special
charges, he shall not subsequently quote a lower price on said pro-
spective sae than haat price first quoted, except in accordance with
revised price lists duly filed or unless he simultaneously eliminates
part or all of the unusual engineering, servicing, financing, financial
risks or other similar special charges, for which a corresponding
reduction only may be made.
(d) No employer shall sell to, or through any broker, jobber,
commission account or sales agency (this is known in the trade as
" pooled buying "), who or which is in fact an agent for an organi-
zation of industrial consumers, with the result that any industrial
consumer secures a discount, allowance or price other than the dis-
count, allowance or price provided for in the employer's own current
net price lists or price lists with discount sheets.
No employer shall evade any provision of this Code by selling to or
through any dealer, jobber, distributor or other selling agency which
shall fail to agree to resell in accordance with the provisions of
Articles VII, VIII and IX of this Supplemental Code.
(e) Wherever by the provisions of this Article VIII an em-
ployer is or may be required to or permitted to file terms of sale
and payment, such terms shall mean usual or standard terms, and
to cover any special and/or unusual terms definite formulae for
determining such special and/or unusual terms shall be filed.
(f) If and when Code Authority shall determine that it is un-
desirable to continue the filing of net price lists and/or price lists
with discount sheets and/or fixed terms of sale and payment on
any product in respect of which such filing has heretofore been re-
quired, such filing shall cease and the provisions of this Article
shall not apply to such product unless and until Code Authority
shall again determine that such filing be made.
ARTICLE IX-TRADE PRACTICES
Each of the following acts and practices is deemed to be inimical to
the best interests of this Subdivision, and the public, and each is,
therefore, hereby declared to be, and to constitute, an unfair method
of competition, viz:-
1. The secret offering or making, to any customer, agent, fiduciary
or representative of customer, of any payment or allowance of a
rebate, refund, commission, credit, credit subsidy, unearned dis-
count or excess allowance, whether in the form of money or other-
wise, or any special service or privilege, for the purpose of in-
fluencing a sale. No employee of the Subdivision shall give, permit
to be given, or offer to give, anything of value for the purpose of in-
fluencang or rewarding the action of any employee, agent, or repre-
sentative of another in relation to the business of the employer of
such employee or the principal of such agent without the knowledge
of such employer or principal, provided, that no provision of this
Code shall be construed to prohibit free and general distribution of
articles commonly used for advertising, except so far as such articles
are actually used for commercial bribery as hereinabove defined.
2. Any discrimination between purchasers, by the sale of any ar-
ticle having a published price, at any price other than the seller's
published price, by means of direct or indirect price concessions, or
by means of any privilege not extended to purchasers generally.
:3. Untruthfully advertising, representing, or marking any prod-
uct, with intent to deceive or mislead.
4. The publishing or circularizing of threat of any suit for in-
fringement or patent or trade mark, or of any other legal proceed-
ings, not in good faith, which would tend to harass a competitor
or intimidate his customers.
5. The taking in trade or accepting in trade any secondhand or
old equipment in part payment for new, provided, however, that
this provision shall not be construed to prohibit in any way the
return within six months of the date of shipment to the Vendor
and the allowance of any fair adjustment thereon by the Vendor
of any product which shall not meet the purposes for which it
was sold. Any employer may, however, assist in finding a bona
fide buyer for said equipment, but shall in no case take any financial
interest in it.
6. So long as the maker of any product of this Subdivision bear-
ing the maker's name or trade mark, which has required special
designing, research or development expense (or his successor in
business) continues to make and supply such spare, repair and re-
placement parts therefore, supplying repair parts for such product
of this Subdivision unless (a) the name of the maker of such copied
non-genuine repair parts shall be plainly marked on each part (or
if this is impracticable on the package or tag) so that the ultimate
user is clearly informed by marking on such parts, packages, tags
and in catalogues, price lists, quoted prices, advertisements or ad-
vertising literature of the manufacturers of such copied non-genuine
parts that said parts were not made by the original maker of the
products of the employer of this Subdivision.
7. The furnishing to any purchaser, and/or his agent, directly
or indirectly of detailed shop drawings of the products of this Sub-
division without filing a statement of such proposed transaction with
the Code Authority which may approve or with the approval of
the Administrator disapprove the transaction within ten (10) days
by written notice to the employer.
8. Disseminating false or misleading information relative to com-
petitor's products, selling prices, reputation credit or financial stand-
mg, ability to perform work, or labor conditions.
UNIVERSITY OF FLORIDA
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14 3 1262 08584 7662
9. Inducing or attempting to induce a breach or abandonment of
contract covering the purchase or sale of the products of this Sub-
division; provided, however, that nothing in this Section shall be
construed to prohibit the attempt on the part of the owner of or
licensee under any patent to induce a purchaser or future purchaser
of any product which shall infringe said patent, to avoid such
10. It shall be an unfair trade practice for any employer to en-
gage in destructive price cutting.
ARTICLE X-SALES FOR EXPORT
The provisions of this Supplemental Code concerning pricing and
marketing (Articles VII, VIII and IX) shall not apply to direct
export sales of any product. A similar exemption may be granted
by the Code Authority of this Subdivision as to sales of any product
destined ultimately for export. Unless otherwise determined by
the Code Authority the term export shall include all shipments
to all places without the several states of the United States and the
District of Columbia; provided, however, that no shipment to any
territory or possession of the United States shall be considered an
export when any employer is engaged in the industry in such terri-
tory or possession.
(a) As provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify any order, approval, license,
rule or regulation issued under Title I of the Act.
(b) Study of the trade practices of this Subdivision will be con-
tinued by Code Authority, with the intention of submitting, from
time to time, after its effective date, amendments or additions to, or
revisions of, or supplements to, this Supplemental Code.
Any such amendments, additions, revisions, or supplements, pro-
posed by Code Authority, and approved by a vote of the employers
shall be in full force and effect upon approval by the President.
The eligibility requirements, method, and effect of such voting shall
be the same as provided in Section (e) of Article V.
The Supplemental Code presented by Applicant is not designed to
promote monopoly, and shall not be so construed or applied as to
oppress or eliminate small enterprises or discriminate against them,
and is designed to effectuate the Policy of the Act.
ARTICLE XIII-EFFECTIVE DATE
This Supplemental Code shall become effective and binding on
all persons engaged in this Subdivision on the eleventh day after
its approval by the President.
Approved Code No. 347-Supplement No. 17.
Registry No. 1399-43.