NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Product Group of the Automotive Parts and
Equipment Manufacturing Industry)
AS APPROVED ON OCTOBER 26, 1934
O OUR PART
GOVERNMENT PRINTING OFFICE
For sale bytheSuperintendentorDocurnents,asing D.C.- - Price 5 cents
For sale by the Superintendent or Documenus. ftaslhinglin. D. C. - Price 5 cents
Approved Code No. 105-Supplement No. 6
Registry No. 1404-51
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 Cust imhouse.
Buffalo. N. Y.: Cli:nmber of Commerce Building.
Charleston, S. C.: Chamber of Commerce Building.
Chic;go. Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: S01 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indiaunlpolis. Ind.: Chamber of Commerce Building.
Jacksonville. Fln.: Chambler of Commerce Building.
Kansas Cit.\, Mo.: 102S Baltimore Avenue.
Los Angeles, Calif.: 1103 South Broadway.
Louisville. Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Miinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York. N. Y.: 734 Customhouse.
Norfolk. Va.: 400 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.
Approved Code No. 105-Supplement No. 6
SUPPLEMENTARY CODE OF FAIR COMPETITION
OIL FILTER MANUFACTURING INDUSTRY
As Approved on October 26, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE OIL FILTER
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANU-
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 Code of
Fair Competition for the Oil Filter Manufacturing Product Group
of the Automotive Parts and Equipment Manufacturing Industry, a
supplemental Code to the Basic Code of the Automotive Parts and
Equipment Manufacturing Industry, and hearings having been duly
held thereon and the annexed report on said Code, containing find-
ings with respect thereto, having been made and directed to the
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859 and otherwise; does hereby incorporate by
reference said annexed report and does find that said Code complies
in all respects with the pertinent provisions and will promote the
policies and purposes of said Title of said Act; and does hereby
order that said Code of Fair Competition be and it is hereby ap-
proved, provided, however, that the provisions of Article IV, para-
graph (8), entitled Special Brands, be and they hereby are stayed
pending its further order.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officer.
BARTON W. MURRAY,
Division A dm inm, hfrator.
WASHINGTON, D. C.,
October 26, 1934.
94039 --1244-104 34 (1
REPORT TO THE PRESIDENT
The White House.
SIR: The Supplement to the Code of Fair Competition for the
Automotive Parts and Manufacturing Industry covering Fair Trade
Practices for the Oil Filter Manufacturing Product Group, a Prod-
uct Group of the said Industry, was submitted to the Administra-
tion on March 22, 1934, by the Code Authority Committee of Auto-
motive Parts and Equipment Manufacturing Industry, representing
approximately 90% of the total volume of sales and 50% of the
members of the Industry.
The Hearing was conducted in Washington on June 25, 1934, and
the Supplement was revised July 20, 1934, and is submitted in its
present form for approval. Every person who requested an appear-
ance was properly heard in accordance with the statutory and reg-
ulatory requ irements.
While the Product Group is nation-wide in character, it has not
experienced any increase in the nunmbier of establishments during the
past few years.
ARTICLE I states the purpose of the Supplementary Code.
ARTICLE II accurately defines specific terms employed in the
ARTICLE III establlishes an Administtrative Committee consist-
iln of five (5) members elected in accordance with the voting pro-
vils-i,. provided in the By-Laws of Automotive Parts and Equip-
ment Manufacturers, Inc., and one nonvoting member, to be ap-
pointed by the Natitlinal Industrial Recovery Board. The wage and
hour provi.ion.s of the Basic Code are adopted. It also provides
machinery for obtaining statistics and the administration of the
ARTICLE IV .-.ts forth the fair trade practices of this Supple-
mentary Code, which has been especially designed to effect fair
competition in this Product Group of the Industry.
ARTICLE V provides against monopolies and monopolistic prac-
tices and provides for the submission of supplementary provisions
to this Supplementary Code or modifications thereof, and contains
the mandatory provisions contained in Section 10 (b) of Title I of
the Act, and states the effective date of the Supplementary Code
shall mean the tenth day after it has been approved.
The Deputy Administrator in his final report to the National In-
dustrial Recovery Board on said Supplemental Code having found as
herein set forth and on the basis of all the proceedings in this matter:
The National Industrial Recovery Board finds that:
(a) Said Supplemental Code is well designed to promote the poli-
cies 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 organization
of industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and man-
agement under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
y 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 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 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 Product Group is an industrial association, truly repre-
sentative of the aforesaid Industry; and that said Product Group
imposes no inequitable restrictions on admission to membership
(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, therefore, the National Industrial Recovery
Board has approved this Supplementary Code.
For the National Industrial Recovery Board:
G. A. LYNCH,
Administrat; ie Officer.
OCTOBER 26, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE OIL FILTER MANUFACTURING INDUSTRY
(A PRODUCT GROUP or THE AUTOMOTIVE PARTS AND EQUIPMENT
Pursuant to the provisions of Article II of the Code of Fair Com-
petition for the Automotive Parts and Equipment Manufacturing
Industry, duly approved by the President on November 8, 1933, the
following provisions covering fair trade practices and the adminis-
tration thereof are hereby established as the standards of Fair
Competition for the Oil Filter Manufacturing Product Group, which
has been organized as an administrative unit under the Original
Equipment and Replacement Parts Divisions of the Automotive
Parts and Equipment Manufacturing 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, assembly, importation, recondi-
tioning and/or rebuilding for sale of lubricating oil filters, excepting,
however, the production and/or manufacture of such products when
produced or manufactured by a manufacturer for use exclusively
in his own fimi-hed product.
The term Member or Member of the Product Group" as
used herein includes, but without limitation, any individual, part-
nership, association, corporation, or other form of enterprise engaged
in the production and/or manufacture, assembly, importation, re-
conditioning and/or rebuilding for sale or the sale as a manufacturer,
of the products of the Product Group (hereinafter termed Prod-
ucts "), either as an employer or on his or its own behalf.
The term Group is defined to mean the Oil Filter Manufactur-
ing Group, a Produ't. Group ", as herein defined, at present hav-
ing 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 Equipment
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 Manufacturing Industry.
(1) (a) The Administrative Committee of the Group shall con-'
sist of Five (5) members elected in accordance with the voting pro-
visions provided in the By-Laws of Automotive Parts and Equip-
ment Manufacturers, Inc.
(b) In addition to the membership as above provided, there may
be one additional member, without vote, to be appointed by the Na-
tional Industrial Recovery Board, to serve without expense to the
Product Group for such term as he may specify.
Not more than one (1) representative of a member of its affiliate
or subsidiary shall be elected to serve on the Administrative Com-
mittee at the same time.
The Administrative Committee shall be elected at the Annual
Meeting of the Group. The first Annual Meeting of the Group was
held at Detroit, Michigan, February 22, 1934, and shall be held annu-
ally thereafter in the month of January at such place and time as
shall be determined by the Administrative Committee.
Immediately following the annual meeting the Administrative
Committee shall meet and elect a chairman, a vice chairman, and a
secretary from among their duly elected members.
The Chairman of the Administrative Committee shall have the
power to call meetings of the Committee and shall be required to do
so on the written request of two members of the Committee and within
ten days from receipt of such requests.
The Administrative Committee shall have the power to call such
meetings of the Group as in their judgment are required and shall
be required to call such Group meetings within two weeks of receipt
of written request for such meetings from five (5) members of the
Group who have qualified as outlined in Article III, paragraph 3 (b).
(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 fair trade practice pro-
visions hereinafter set forth and the provisions of the Basic Code, to
which these fair trade practices are a supplement.
(3) (a) It being found necessary, in order to support the adminis-
tration of this Supplement and to maintain the standards of fair
competition established hereunder and to effectuate the policy of the
Act, the Administrative Committee is authorized, subject to the ap-
proval of the National Inildustrial Recovery Board:
(1) 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 Supplement;
(2) To submit to the National Industrial Recovery Board for ap-
proval, subject to such notice and opportunity to be heard as they
may deem necessary, (a) an itemized buidg4ot of its estimated expenses
for the foregoing purposes, and (b) an equitable basis upon which
the funds necessary to support cuch budget shall be contributed by
members of the Product Group;
(3) After sulch budget and basis of contribution have been ap-
proved by the National Indutt i-ial 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
equitable contribution to the expenses of the maintenance of the
Administrative Committee, determined as hereinabove provided, and
subject to rules and regulations pertaining thereto issued by the
National Industrial Recovery Board. Only members of this Product
Group complying with the Supplement and contributing to the ex-
penses of its administration as hereinabove provided, unless duly
exempted from making such contributions, shall be entitled to par-
ticipate in the selection of members of the Administrative Committee
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 Administrative Committee shall neither incur nor pay
any obligation substantially in excess of the amount thereof as esti-
mated 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 bud-
get shall contain any deficiency item for expenditures in excess of
rior budget e-:timates except those which the National Industrial
Recovery Board shall have so approved.
(4) (a) The Administrative Committee shall, subject to the dis-
approval of or modification by 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 mem-
bers, through an impartial agency, such information and reports
as are required for the administration and enforcement. of this Sup-
plement; to cooperate with the National Industrial Recovery Board
under such rule. and regulations as may be prescribed by them in
regulating the use of any N. R. A. insignia and in hearing and ad-
justing complaints; and to initiate, consider, and recommend to. the
Code Authority further fair trade practice 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
Committee 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 investigation of the merits of such action and further considera-
tion by such Code Authority and/or the Administrative Committee
or any agency thereof pending final action which shall not. be effec-
tive unless the National Industrial Recovery Board approves or
unless he shall fail to disapprove after thirty days' notice to him
of intention to proceed with such action in its original or modified
(c) Each trade or -industrial association directly or indirectly
participating 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 association, 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 pur-
poses 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 Indus-
trial Recovery Board may prescribe such hearings as they may deem
proper; and thereafter if they 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
(5) All members of this Product Group shall be bound by the
provisions of the Basic Code. For this purpose, the wage and hour
provisions of the Basic Code are hereby declared to be a part of this
Supplement. In case of any conflict between the provisions of this
Supplement 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 Act, the following provision is contained in this Supplement:
(a) Every code of fair competition agreement and license approved,
prescribed, or issued under this title shall contain the following con-
ditions: (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 em-
ployers of labor or their agents, in the designation of such represen-
tatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protec-
tion; (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 assisting a labor organiza-
tion of his 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 prescribed by the President.
(6) The Administrative Committee shall cause to be formulated
methods of cost finding and accounting capable of use by all mem-
bers of the Product Grloup, and shall .-ubmlit -u.ch methods to the
National Industrial Recovery Board for review. If approved by
the National Industrial Recovery Board, full information concern-
ing such methods shall be made available to all members of the
Product Group. Thereafter, each member of the Product Group
shall utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit the Administrative
Committee, any agent thereof, or any member of the Product Group
to suggest uniform additions, percentages or differentials or other
uniform items of cost which are de-sigicd 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 IV-TRADE PRACTICES
In addition to the provisions of Section C of the Article VI of the
Basic Code, the following described acts shall constitute unfair
(1) Costs and Price Cutting.-(a) Wilfully destructive price cut-
ting is an unfair method of competition and is forbidden. Any mem-
ber of the Product Group or of any other industry or the customers
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 Committee shall within five (5)
days afford an opportunity to the member filing and/or offering the
price to answer such complaint and shall within fourteen (14) days
make a ruling or adjustmennt thereon. If such ruling is not con-
curred in by either party to the complaint, all papers shall be re-
ferred to the Research and Planning Division of N.R.A. which
shall render a report and recommendation thereon to the National
Industrial 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 estiniating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) When an emergency exists as to any given product sale below
the stated minimum price of such product, in violation of the pro-
visions of paragraph (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 speci-
fied product of the Product Gr'up for a limited period is necessary
to mitigate the conditions constituting such emergency and to effec-
tuate the purposes of the Act, the Administrative Committee may
cause an impartial agency to investigate costs and to recommend to
the National Industrial Recovery Board a determination of the
stated minimum price of the product affected by the emergency and
thereupon the National Industrial Recovery Board may proceed to
determine such to:te 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 condition.- 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 Com-
mittee may reconliend review or reconsideration or the National
Industrial Recovery Board may cause any determinations hereunder
to be reviewed or reconsidered and appropriate action taken.
(2) Co m,,erial 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 rcpre-_entative 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 bribery
provisions shall not be construed to prohibit free and general dis-
tribution of articles commonly used for ad\verti-ing except so far as
such articles are actually used for commercial bribery as herein
(3) Mi sbraindi y and Mislabelling.-False branding or labelling
or failure to brand or label products of the industry for the purpose
or with the effect of misleading or deceiving purchasers or con-'umers
with respect to the quality, grade, effectiveness, origin, method of
operation, character, or substance of the products purrliae-;d.
(4) Imitation of Trade Marks.-Imitation of a competitor's trade
mark, marking or trade name, with the purpose or effect of mis-
leading or deceiving any purchaser or prospective purchaser.
(5) Inaccurate Ad rthi iy.-To publish advertising (whether
printed, radio, display, or of any other nature), which is mii-lading
or inaccurate in any material particular, or in any material way to
misrepresent any products or credit terms, values, policies, .-rvices,
or the nature or form of the business conducted.
(6) Rebuilt or R(condifio',wd P odtuctf.--To rebuild or remic,-lition,
to disassemble or reassemble with either the same or different parts,
sandblast or chemically treat the metal container, paint, lacquer or
varnish the metal parts, or otherwise clean or refurnish oil filters
with the purpose or intent of selling or offering the same for sale
(a) Completely removing therefrom all trade marks, trade iuilllis,
style marks, size marks and/or brand marks of the original manu-
fact urer, and
(b) Painting the words "Rebuilt or "Used in not less than
1/2" block letters, in a contrasting color, in two places approximately
opposite on the body of the oil filter, and
(c) Also packing such oil filters in a plain white, gray or buff
carton with only the name and address of the rebuilder or recondi-
tioner; and the words "Rebuilt Oil Filter or "Used Oil Filter "
printed on each side thereof in not less than 1/2" block letters; and
printing on each end of the carton the size designation and the
word R-built" or "Used" in not less than 1/4" block letters;
and/or to sell or offer for sale oil filters which have been rebuilt or
reconditioned unless the same are marked and packed as above
provided; and/or to advertise or otherwise represent, sell or offer
to sell any rebuilt or reconditioned oil filters as the product of or
under the trade mark, trade name or brand mark of the original
(7) Replacing Com.petltor's Stock.-To liquidate, purchase, or
accept another member's product from any buyer.
(8) Special Bran.ds.-To sell or offer for sale special brand oil
filters manufactured after the effective date of this Supplement,
which are not so marked and/or packaged as to clearly indicate to
the consumer, the producer or manufacturer of same.1
(9) Export.-The provisions of this Supplement, with the excep-
tion of Article IV, paragraph (1), are to apply to direct export
sales and to sales in course of export (i. e., sales destined ultimately
for export) and to sales of materials used in the manufacture of
products for export.
(1) No provision of this Supplement 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 Supplement as are not required
to be included herein by the Act may, with the approval of the
National Industrial Recovery Board, be modified or eliminated upon
proposal by the Product Group or any member thereof if it appear
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 of this Supplement or modifications thereof will, after ap-
proval by the Product Group, be submitted by the Administrative
Committee through the Code Authority for approval to prevent
unfair competition in price and other unfair and destructive com-
petitive practices and to effectuate the purposes of the Act. Upon
approval by the National Industrial Recovery Board after such notice
and hearing as he may prescribe, such supplementary provisions or
modifications shall become binding as a part of this Supplement.
(4) As required by Section 10 (b) of Title I of the Act, the fol-
lowing provision is contained in this Supplement: The President
may from time to time cancel or modify any order, approval, license,
rule, or regulation issued under said Title.
(5) By assenting to this Supplemental 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 provi-
sion of this Supplement 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 Supplement shall be the tenth day
after it shall have been approved by the President.
Approved Code No. 105-Supplement No. 6.
Registry No. 1404-51.
1See paragraph 2 of order approving this Code.
UNIVERSITY OF FLORIDA
S111111111111111111 illlll 1 1111 i III ll 1111111111
3 1262 08584 3422