Approved Code No. 105-Supplement No. 8
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
POWDERED METAL BEARING
(A Product Group of the Automotive Parts and
AS APPROVED ON DECEMBER 18, 1934
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Approved Code No. 105-Supplement No. 8
SUPPLEMENTARY CODE OF FAIR COMPETITION
POWDERED METAL BEARING MANUFACTURING
As Approved on December 18, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION Fi II THE
POWDERED M IETAL BEA.\ING MANUFACTUIRINI; INDUSTRY
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND i:(QUIPMIFNT MANU-
FACTU RING 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, for approval of a Supple-
mentary Code of Fair Competition for the Po\wdered Metal Bear-
ing Manufacturing Indu.stry, a Product Group of the Altiobll tive
Parts and Equipment Ma nufacntu ring Industry, and heI ri ng having
been duly held thereon and the annexed report on .-.id Supplcllin-
tary Code, containing findings with respect thereto, having bcen
made and directed to the President:
NOW, THEREFORE, on behalf of the Plreident of the United
States, the National Industrial Recovery Board, pursmint. to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 68.9, and otherwise, does hereby incorporate
by reference, said annexed report and does find that said Supplemen-
tary Code complies in all respects with the pertinent proviioins and
will promote the policy and purposes of said Title of said Act; and
does hereby order that said Supplementary Code of Fair Competi-
tion be and it is hereby approved.
NATIONAL INDIUSTMI.AL RECOVERY BOARD.
By W. A. HARRIMAN, Ad ,inistrative Officer.
BARTON W. MURRAY,
Divi.iojn Adm ibisfrator.
WASHINGTON, D. C.,
December 18, 13J4.
103804--1385-106---34 ( 1
REPORT TO THE PRESIDENT
The White House.
SIm: This is a report on a Supplementary Code of Fair Competi-
tion for the Powdered Metal Bearing Manufacturing Industry, a
Product Group of the Automotive Parts and Equipment Manufac-
turing Industry. A proposed Supplementary Code was submitted
on March 26, 1934, by the Code Authority Committee of the Automo-
tive Parts and Equipment. Manufacturing Industry, on behalf of
the Powdered Metal Bearing Product. Group which represents ap-
proxinmately 9;c. of the total volume of sales and o50;-. of the nlumb}er
of members of the Industry.
The Public Hearing cn the proposed Supplementary Code was
conducted in Wanhingt.'n on June 25, 1934, in accrordanco with the
provisions of the National Indir.-iri.J Recovery Act. It was later
revised and approved in its pr.l'i. Ki form. This Supplementary Code
is designed primiaiily to put into legil effect certain Fair Trade
Practice rules which long have bleen recognized in the Industry, but
which have been without binding. legal effect. The labor provisions
of this Supplementary Code are those of the Basic Automotive Parts
and Equipijmeint Manuifacturing Industry Code. The purpose of the
Supplementary Code is stated in Article I, and Article II is devoted
An Adiministrative Comml:ittee to ndminister the Supplementary
Code is set up in Article III. This Coninittee is compo.-ed of four
mnembenrso elected in accorldanc.i with the voting pr'ovisionis provided
in the By-Laws of Automotive Parts and Equipment Manufacturers,
Incorporated, and one non-votinig imenmber may be appointed by the
National Industri:! Recovery Board to serve without .-xpeInse to the
Product Group for such time as the National Industrial Recovery
Board maiy specify.
Trade Practice Rules are set forth in Articleh IV.
The Deputy Adlnini-traitor in his final report to the National In-
du-trian Recovery Board on said SuiipplemetiiaIry Code having found
as herein set forth and on the b-isis of all the proceedings in this
The National Industrial Rccovery Board finds that:
(a) Said Suppl:lmentary Code is well designed to promote the
policies and purposes of Title I of the Nationnl Industrial Recovery
Act including removal of obstructions to the free flow of interstate
and foreign i'ormnerce 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 sanction 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 in-
dustrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Product Group normally employs not more than 50,000
employees; and is not classified by the National Industrial Recovery
Board as a major industry.
(c) The Supplementary Code, as approved, complies in all re-
spects with the pertinent provisions of said Title of said Act. includ-
ing without limitation Subsection (a) of Section 3, Subsection (a)
of Section 7 and Subsection (b) of Section 10 thereof; and that. the
applicant Product Group is an industrial group truly representa-
tive of the aforesaid Industry; and that said Product Group im-
poses 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 elim-
inate or oppress small enterpri.-es and will not operate to discrimi-
nate 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, the National Industrial Recovery
Board has approved this Supplementary Code.
For the National Industrial Recovery Board:
W. A. HAHRI.AN,
Ad min istratiHe Officer.
DECEMBER 18, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE POWDERED METAL BEARING MANUFACTURING
A PRODUCT GROVP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANU-
Pursuant, to the provisions of Article II of the Code of Fair
Competition for the Automotive Parts and Equipment Manufac-
turing Industry, duly approved by the President on November 8,
1933, the following provisions covering trade practices and the ad-
miinitration thereof are hereby established as the standards of Fair
Competition for the Powdered Metal Bearing Manufacturing Indus-
try, which has been organized into an administrative unit of the,
Automotive Parts and Equipment Manufacturin g Industry, and
shall be binding upon every member of said Product Group.
The term "Product Group as used herein is defined to mean the
production and/or manufacture of Powdered Metal Bearings, Bush-
inzs, Washer;, and/or related powdered metal products, excepting,
however, the prod lt ion and/or manufacture of such products when
produced or manufactured by a manufacturer for use exclusively in
his own finished product.
The term IMember or Member of the Product Group as used
herein includeh-, but without limitation, any individual, partnership,
a i.-,citin, corporation, or u.it!r form of enterprise engaged in the
production and/or iimin'fa;'ui. and/or the sale a-, a manufacturer
of the products of the Product Group (lhereinafter termed "Prod-
ucts ") either as an employer or on his or its own behalf.
The term Class 'A' Products as used herein is defined to mean
the products of the Product Group which are sold to manufacturers
of motor vehicles or internal combustion engines for original equip-
ment, and provided always that this defin iti(on shall not include any
products hereinabove described, or parts thereof or therefore not
designed for and used mainly as automotive original equipment, re-
placement parts, and/or acce--.;ries, and which are included within
the scope of the drTfinition of any other industry as defined in any
approved Code of Fair Competition.
The term Class B Products as u-ed herein is defined to mean
the products of the Product Group which are sold to customers,
other than buyers of original ejlipnient, for any purpose other than
The term Group is defined to mean the Powdered Metal Bear-
ing Manufacturing Group, a Product Group as herein defined, at
present having its headquarters' office in Detroit, Michigan.
The term -" Basic Code as used herein is defined to mean the
Code of Fair Competition for the Automotive Parts and Equip-
ment Manufacturing Industry, as approved by the President on
November 8, 1933. and as amended.
The term "Code Authority as used herein is defined to mean
the Code Authority designated in the Code of Fair Competition for
the Automotive Parts and Equipment Manutfacturing Industry.
(1) The Administrative Committee of the Group shall consist of:
(a) Four members to be elected at the annual meeting of the
Group in accordance with the voting provisions provided in the
By-Laws of Automotive Parts and Equipm ent Manufacturers, Inc.
(b) In addition to the membership as above provided, there may
be one additional member, without vote, to be appointed by the
National Industrial Recovery Board, to serve without. expense to
the Product Group for such term as the National Industrial Re-
covery Board may specify.
(2) The Administrative Committee. of the Group is hereby desig-
nated to assist. the Code Authority and the National Industrial Re-
covery Board in the Administration of the trade practice provi-
sions hereinafter set forth and the provisions of the Basic Code,
to which these trade practices are a supplement.
(3) (a) It being found necessary in order to support the admin-
istration of this Supplementary Code and to maintain the standards
of fair competition established hereunder and to effectuate the policy
of the Act, the Administrative Commiittee is authorized:
(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purpo-es, 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 this Supplementary Code:
(2) To submit to the National Industrial Recovery Board for its
approval, subject to such notice and opportunity to be heard as it
may deem necessary, (a) an itemized budget of its estimated ex-
penses for the foregoing purposes, and (b) an equitable basis upon
which the funds necessary to support such budget shall be contrib-
uted by members of the Product Group;
(3) After such budget and basis of contribution have been ap-
proved by the National Industrial Recovery Board, to determine
and obtain equitable contribution as above set forth by all members
of the Product Group, and to that end, if necessary, to institute
legal proceedings therefore in its own name.
(b) Each member of the Product Group shall pay his or its equit-
able contribution to the expenses of the maintenance of the Admin-
ist.rative Committee, determined as hereinabove provided, and sub-
ject to rules and regulations pertaining thereto issued by the National
Industrial Recovery Board. Only members of this Product Group
complying with this Supplementary Code and contributing to the
expenses of its administration as hereinabove provided, (unless duly
exijempted from nailing such contribution,) shall be entitled to par-
ticipate in the sele, ion of members of the Administrative Commit-
tee or to receive the benefits of any of its voluntary activities or to
make use of any emblem or insignia of the National Recovery
(c) The Administration Committee shall neither incur nor pay
any obligation -iilb-tantiallv in excess of the amount thereof as esti-
imated in its approved budget, and shall in no event exceed the total
amount contained in the approved budget, except upon approval of
the National Industrial Recovery Board; and no subsequent budget
shall contain any deficiency item for expenditures in excess of prior
budget estimates except those which the National Indiutrial Recov-
ery Board s-hall have so approved.
(4) (a) The Administrative Committee shall, subject. to the ap-
proval of the Code Authority and the National Industrial Recovery
Board, have the power to adopt by-laws and rules and regulations
for its procedure and to obtain from members, through an impartial
agency, such information and reports as are required for the admin-
istration and enforcement of this Supplementary Code; to cooperate
with the National Industrial Recovery Board under such rules and
regulations as may be prescribed by it in regulating the use of any
N. R. A. insignia and in hearing and adjusting complaints; to
initiate consider, aInd recommend to the Code Authority for trans-
mittal to the National Industrial Recoverv Board further fair-trade
praI-tice provisions to govern the members of this Product Group.
(b) If the National Industrial Recovery Board shall determine
that any action of the Code Authority and,'or the Administrative
Co(nimittvcL or any agency thereof may be unfair or unjust or con-
trary to the public interest, the National Industrial Recovery Board
may require that such action be suspended to afford an opportunity
for investiga-tion of the merits of such action and further considera-
tion by such Code Authority and/or the Administrative Committee
or agency thereof pending final action which shall not be effective
unless the National Industrial Recovery Board approves or unless
it shall fail to disapprove after thirty days' notice to it of intention
to proceed with such action in its original or modified form.
(c) Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Administrative Com-
mittee shall (1) impose no inequitable restrictions on membership,
and (2) submit to the National Industrial Recovery Board true
copies of its articles of ass-ociation, by-laws, regulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the National
Industrial Recovery Board may deem necessary to effectuate the
purpJoses of the Act.
(d) In order that the Administrative Committee shall at all times
be truly representative of the Product Group and in other respects
comply with the provisions of the Act, the National Industrial
Recovery Board may prescribe such hearings as it may deem proper;
and thereafter, if it shall find that the Administrative Committee
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 Administrative Committee.
(5) All members of this Product Group shall be bound by the
provisions of the Basic Code. For this purpose all provisions,
including specifically the wage, hour and labor provisions, of the
Basic Code are hereby declared to be a part of this Supplementary
Code. In case of any conflict between the provisions of this Supple-
mentary Code and the provisions of the Basic Code. the provisions
of the latter shall govern. As required by Section 7 (a) of Title I
of the National Industrial Recovery A:ct, it is hereby provided:
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of su(h representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection; (2) that
no employee and no one seeking employment shall be required as a
condition of employment, to join any company union or to refrain
from joining, organizing, or assi.ting a labor organization of hi- own
choosing; and (3) that employers shall comply with the maximum
hours of labor, minimum rates of pay and other conditions of
employment, approved or pre.~'cribed by the President.
(6) The Administrative Committee shall cause to be formulated
methods of cost finding and accounting capable of use by all members
of the product group, and shall submit such lmethod-1 to the National
Industrial Recovery Board for review. If approved by the National
Industrial Recovery Board. full information concerning such
methods shall be made available to all members of the Product
Group. Thereafter, each mn.,ber of the Product Group shall utilize
such methods to the extent found practicable. Nothing herein con-
tained shall be construed to permit the Administrative Commnittee,
any agent thereof, or any member of the Product Group to suzest
uniform additions, percentages or differentials or other uniform
items of cost which are designed to bring about arbitrary uniformity
of costs or prices.
(7) The Administrative Committee shall be empowered to obtain
from members of the industry such information and reports as are
required for the administration of the Code. In addition to infor-
mation required to be submitted to the Code Authority, members of
the Industry subject to this Code shall furnish such statistical infor-
mation as the National Industrial Recovery Board may deem neces-
sary for the purposes recited in Section 3 (a) of the Act to such
Federal and State agencies as it may designate; provided that noth-
ing in this Code shall relieve any member of the industry of any
existing obligations to furnish reports to any Government. agency.
No'individual report shall be disclosed to any other member of the
industry or any other party except to such other Governmental
agencies as may be directed by the National Industrial Recovery
ARTICLE TV-TRADE PRACTICES
In addition to the provisions of Section C of Article VI of the
Basic Code, the following described acts shall constitute unfair
practices and acts of unfair competition:
(1) Costs and Price Cut/fing.-(a) Wilfully destructive price cut-
ting is an unfair method of competition and is forbidden. Any
member of the Product Group or of any other industry or the cus-
tomers of either may at any time complain to the Administrative
Committee that any filed and 'or offered price constitutes unfair
competition as destructive price cutting, imperiling small enterprises
or tending toward monopoly or the impairment of code wages and
working conditions. The Administrative Commnittee shall within 5
days afford an opportunity to the member filing and 'or offering the
price to ani.'wer such complaint and shall within 14 days make a
ruling or adjustment thereon. If such ruling is not concurred in
by either party to the complaint, all papers shall be referred to the
Research and" Planning Division of the National Recovery Admin-
istration which shall render a report and recommendation thereon
to the National Indus..trial Recovery Board.
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended
that sound cost' estimating methods should be. used and that con-
sideration should be given to costs in the determination of pricing
(c) When an emergency exists as to any given product sale below
the stated minimum price of such product, in violation of the pro-
viion of paragraphs (d) and (e) hereof, is forbidden.
(d) If the National Industrial Recovery Board, after investiga-
tion shall at any time find both (1) that an emergency has arisen
within the Product Group adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a
specified product of the Product Group for a limited period is neces-
.sary to miitigate the conditions constituting such emergency and to
effectuate the purposes of the Act, the Administrative Committee
may cause an impartial agency to investigate costs and to recom-
mend to the National Industrial Recovery Board a determination
of the stated minimum price of the product affected by the emer-
gency and thereupon the National Industrial Recovery Board may
proceed to determine such stated minimum price.
(e) When the National Industrial Recovery Board shall have
determined such stated minimum price for a specified product for a
stated period, which price shall be reasonably calculated to mitigate
the conditions of such emergency and to effectuate the purposes of
the National Industrial Recovery Act, it shall publish such price.
Thereafter, during such stated period, no member of the Product
Group shall sell such specified products at a net realized price below
said stated minimum price and any such sale shall be deemed destruc-
tive price cutting. From time to time, the Administrative Commit-
tee may recommend review or reconsideration of the National Indus-
trial Recovery Board may cause any determinations hereunder to be
reviewed or reconsidered and appropriate action taken.
(2) Comme,:rcial Bribery.-To give, permit to be given, or directly
offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. Commercial brib-
ery provisions shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as hereii-
(3) Inducing Breach of Contirac'.-To induce the breach of exi:ti;ig
contracts between competitors and their customers by any means or
device whatsoever, or to interfere or to obstruct the performance of
any such contractual obligations or service.
(4) Rcp'uditaltio of Contract.-To repudiate or cancel a'-cepte,
orders or other contracts, except for legal cause or by mutual o:s.ijent.
(5) l JZdrand'ing.-To brand falsely or fail to brand products of
the (Group for the purpose or with the effect of misleading or dee-iv-
ing purchasers in some material particular or consumers \viLh r~.'.:t
to the quantity, quality, grade, origin, or sulit.:!'nce of the prodlui'ts
(6) Imitation of Trade-markes.-To imitate a competitor's trade-
mark, markinl(g, or i'ade lnu imel, with the puMrpu.o or effect of mis-
leading or deceiving any purchaser or prospective purchaser.
(7) Inacc-urate lie rfti;iSinlu.-To .publi-.h advertising (whether
printed, radio, di.pl;.iy, or of any o-ther nature) which is Imi.-ledliiig
or inaccurate in any material partiCu:lar, or in any material way to
misrepresent any product included i., but without limitation its use,
trade-mark, grade, quualify. quV tity. oiigin, si:.i, -ubstance, charac-
ter, nature, finish, material content, or preparation) or credit terms,
values, policies ~ei'vices, or the nature or form of the business
(8) Substitution.-To furnish products more or less expensive, of
better or inferior quality, or of larger or smaller size than s.peified
without clearly indintin-g the nature of the substitution.
(9) Price Guaranty.-To sell or offer for sale 1)pod.ucts of this
Group under any form of guaranty to a purchaser or prospcl) tive
purchaser a.!ainit either advance or idolcine in the price of said
(10) LuMp-Swr n BJlrdiny.-To quote a totil price on any scheduled.
of products which does not show, or which is lower than the s-iu
of, the regular unit prices of the pi' duc!t.; comprising the schedule.
Where a product consists of two or more parts, which themselves
are considered units by the Group, the unit price of the combination
product shall not be less than the sum of the unit prices of the parts
which comprise it.
(11) Defective Products.-To allow credit for any defective prod-
uct until the fact of such defect shall have been established by an
authorized representative of the mi-nimbr and the product shall have
been destroyed or returned to the member.
(12) Obsoolesccne'.-To accept the return of obsolete products for
credit or exchange.
(13) Replacg;,, Competitor's Stock.-To liquidate, purchase, or
accept another member's product from any buyer.
(14) Coercion.-To require that the purchase of any goods or
products be a prerequisite to the purchase of any goods or products.
(15) Tools.-To fail to make a fair charge to customers for tools,
dies, jigs. and equipment necessary for the manufacture of Class "A"
(1) No provision of this Supplementary Code shall be so applied
as to permit monopolies or monopolistic practices, or to eliminate,
oppress. or discriminate against small enterprises.
(2) Such of the provisions of this Supplementary Code as are
not required to be included herein by the Act may, with the approval
of the National Industrial Recovery Board, be modified or elimi-
nated upon proposal by the Product Group or any member thereof
if it appears that the public needs are not being served thereby and
as changes in circumstances or experience may indicate.
(3) It is contemplated that from time to time supplementary pro-
visions to this Supplementary Code or modifications thereof will,
after approval by the Product Group, be submitted by the Adminis-
trative Committee through the Code Authority for approval to pre-
vent unfair competition in price and other unfair and destructive
competitive practices and to effectuate the purposes of the Act.
Upon approval by the National Industrial Recovery Board after such
notice and hearing as it may prescribe, such supplementary provi-
,ioln or modifications shall become binding as a part of this Supple-
(4) As required by Section 10 (b) of Title I of the Act, this Sup-
plementary Code and all of the provisions thereof are expressly made
subject to the right of the President from time to time to cancel or
modify any order, approval, license, rule, or regulation issued under
(5) By assenting to this Supplementary Code no member of this
Product Group shall be held to have waived any of his constitutional
(6) Violation by any member of this Product Group of any pro-
vision of this Supplementary Code is an act of unfair competition,
and the offender shall be subject to the penalties imposed by the Act.
(7) The Effective Date of this Supplementary Code shall be
the tenth (10) day after it shall have been approved.
Approved Code No. 105-Supplement No. 8.
Registry No. 1404-53.
UNIVERSITY OF FLORIDA
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