Approved Code No. 105-Supplement No. 5
Registry No. 1404-49
NATIONAL RECOVERY ADMINISTRATION
CODE.OF FAIR COMPETITION
(A Product Group of the Automotive Parts and
Equipment Manufacturing Industry)
AS APPROVED ON OCTOBER 24, 1934
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Approved Code No. 105-Supplement No. 5
SUPPLEMENTARY CODE OF FAIR COMPETITION
CARBURETOR MANUFACTURING INDUSTRY
As Approved on October 24, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CARBURETOR
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFAC-
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 Carburetor 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, dated September 27, 1934, and otherwise;
does hereby incorporate by reference said annexed report and does
find that said Code complies in all respects with the pertinent pro-
visions and will promote the policy and purposes of said Title of
said Act; and does hereby order that said Code of Fair Competition
be and it is hereby approved.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officr.
BARTON W. MURRAY,
WASHINGTON, D. C.,
October 24, 1934.
REPORT TO THE PRESIDENT
The White House.
Smn: The Supplement to the Code of Fair Competition for the
Automotive Parts and Equipment Manufacturing Industry cover-
ing Fair Trade Practices for the Carburetor Manufacturing Product
Group, a Product Group of the said Industry, was submitted to the
Administration on March 20, 1934, by the Code Authority Commit-
tee of Automotive Parts and Equipment Manufacturing Industry
representing approximately 90% of the total volume of sales and
members of the Industry.
The Hearing was conducted in Washington on June 26, 1934
and the Supplement was revised July 20, 1934 and is submitted in
its present form for approval. Every person who requested an
appearance was properly heard in accordance with the statutory
and regulatory requirements.
While the Product Group is nation-wide in character, it has not
experienced any increase in the number 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 Sup-
Article III establishes an Administrative Committee consisting of
three Class "A" Members elected by the Class "A" Members in ac-
cordance with the voting provisions provided in the By-Laws of
Automotive Parts and Equipment Manufacturers, Inc., and three
Class B Members elected by the Class B Members in accord-
ance with the voting provisions provided in the By-Laws of Auto-
motive Parts and Equipment Manufacturers, Inc., the Secretary of
the Code Authority Committee of Automotive Parts and Equipment
Manufacturers Inc., who shall be Chairman of the Administrative
Committee with vote, and one non-voting member, to be appointed by
the National Industrial Recovery Board. It also provides for the
adoption of the labor provisions of the Basic Code and provides
machinery for obtaining statistics and the administration of this
Article IV sets forth the fair trade practices of this Supplemen-
tary Code, which has been especially designed to effect fair compe-
tition in this Product Group of the Industry.
Article V provides against monopolies and monopolistic practices
and provides for the submission of supplementary provisions to this
Supplementary Code or modifications thereof, and contains the man-
datory 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 us on said Sup-
plemental Code having found as herein set forth and on the basis
of all the proceedings in this matter;
We 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 organization
of industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and
management under adequate goverrnental sanctions and supervision,
by eliminating unfair competitive practices, by promoting the full-
est possible utilization of the present productive capacity of indus-
tries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the consumption of indus-
trial 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 me as a major industry.
(c) The Supplementing 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,
OCTOBER 24, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE CARBURETOR MANUFACTURING INDUSTRY
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFAC-
Pursuant to the provisions of Article II of the Code of Fair
Competition for the Automotive Parts and Equipment Manufactur-
ing Industry, duly approved by the President on November 8, 1i33,
the following provisions covering fair trade practices and the admin-
istration thereof are hereby established as the standards of Fair
Competition for the Carburetor Manufacturing Product Group,
which has been organized as an administrative unit under the Orig-
inal 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 manu facture of carburetors including attachments
which purposely affect the operation of the carburetor and/or com-
ponent parts for original equipment and/or replacements on motor
vehicles or any other vehicle or product, excepting, however, the
production and/or manufacture of such products when produced or
manufactured by a manufacturer for use exclusively in his own
The term Memnber or IMember of the Product Group as used
herein includes, but without limitation, any individual, partnership,
association, corporation, or other form of enterprise engaged in the
production and/or manufacture and/or the sale as a manufacturer of
the products of the Product Group (hereinafter termed Products ")
either as an employer or on his or its own behalf.
The term Class 'A' Members as used herein is defined to mean
members of the Product Group whose products are sold to manu-
facturers of motor vehicles or any other vehicle or product for origi-
nal equipment and for service requirements thereon.
The term Class B' Members as used herein is defined to mean
members of the Product Group whose products are sold to customers
other than buyers of original equipment for replacement of original
equipment or parts thereof or as accessories for motor vehicles or any
other vehicle or product.
The term "Group" as used herein is defined to mean the Car-
buretor Manufacturing Group, a "Product Group 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 Man-
ufacturing 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) The Administrative Committee of the Group shall consist of:
(a) Three Class "A" Members elected by the Class "A" Members
in accordance with the voting provisions provided in the By-Laws of
Automotive Parts and Equipment Manufacturers, Inc., and
(b) Three Class "B Members elected by the Class B Mem-
bers in accordance with the voting provisions provided in the By-
Laws of Automotive Parts and Equipment Manufacturers, Inc., and
(c) The Secretary of the Code Authority Committee of Automo-
tive Parts and Equipment Manufacturers Inc., who shall be Chair-
man of the Administrative Committee with vote.
(d) 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.
(e) Providing further that no member shall be represented in
more than one group.
The Administrative Committee shall be elected at the annual
meeting of the Group.
The first annual meeting of the Group was held at Detroit, Michi-
gan, February 8, 1934, and shall be held annually thereafter on
the first Thursday in December.
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 three 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 is hereby designated to as-
sist the Code Authority and the National Industrial Recovery Board
in the administration of the fair trade practice provisions herein-
after 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 admin-
istration 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
approval of the National Industrial 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 Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary,
(a) an itemized budget of its estimated expenses for the foregoing
purposes, and (b) an equitable basis upon which the funds neces-
sary to support such budget shall be contributed by members of the
(3) After such budget and basis of contributions 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 equi-
table contribution to the expenses of the maintenance of the Admin-
istrative Committee, determined as hereinabove provided, and
subject to rules and regulations pertaining thereto issued by the
National Industrial Recovery Board. Only members of the 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 Com-
mittee 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 estimated
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 Industrial Recovery Board
shall have so approved.
(4) (a) The Administrative Committee shall, subject to the dis-
approval of the Code Authority and the National Industrial Re-
covery Board, have the power to adopt by-laws and rules and regu-
lations for its procedure and to obtain from members, directly
or 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 rules and regulations as may be prescribed by it in regulating
the use of any N. R. A. insignia, and in hearing and adjusting com-
plaints; to initiate, consider, and recommend to the Code Authority
or transmittal to the National Industrial Recovery Board further
fair trade practice provisions to govern the members of this Product
Group; and to discharge the other powers and duties provided in
(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 con-
sideration by such Code Authority and/or the Administrative Com-
mittee or agency 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 inten-
tion to proceed with such action in its original or modified form.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Administrative
Committee shall (1) impose no inequitable restrictions on member-
ship, 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 in-
formation as to membership, organization, and activities as the
National Industrial Recovery Board may deem necessary to effectu-
ate the purposes 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 Comlnittee.
(5) All members of this Product Group shall be bound by the pro-
visions 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:
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
employers of labor, or their agents, in the designation of such repre-
sentatives 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 con-
ditions of employment, approved or prescribed by the President.
(6) The Administrative Committee shall ca use to be formulated
methods of cost finding and accounting capable of use by all mem-
bers of the Product Group, and shall submit such methods 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 member of the Product Group shall utilize
such methods to the extent found practicable. Nothing herein con-
tained 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 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-
vary for the purposes recited in Section 8 (a) of the Act to such
Federal and State agencies as he may designate; provided that
nothing 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 Article VI of the
Basic Code, the following described acts shall constitute unfair
(1) Costs and Price Cutting.-(a) Wilfully destructive price
cutting 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 Committee shall within 5
days afford an opportunity to the member filing and/or offering the
price to answer 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 N. R. A. which shall render a
report and recommendation thereon to the National Industrial
(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. consideration
should be given 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 provi-
sions 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 specified prod-
uct of the Product Group for a limited period is necessary to mitigate
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 recommend to the
National Industrial Recovery Board a determination of the stated
minimum price of the product affected by the emergency and there-
upon the National Industrial Recovery Board may proceed to deter-
mine 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, he 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 Committee
may recommend review or reconsideration or the National Industrial
Recovery Board may cause any determinations hereunder to be
reviewed or reconsidered and appropriate action taken.
(2) Inaccurate Labeling.-To list, brand, mark, number or pack
any products of the Product Group in any manner which is intended
to or does deceive or mislead purchasers in some material particular,
or the failure to brand such products for the purpose or with the
effect of misleading or deceiving purchasers in some material particu-
lar with respect to such products (including, but without limitation,
their brand, grade, quality, quantity, origin, size, substance, char-
acter, nature, finish, material content, or preparation).
(3) Imitation of Trade-Marks.-To imitate or copy or use a com-
petitor's trade-mark, marking, trade name, or part number with the
purpose or effect of misleading or deceiving any purchaser or pros-
(4) Inacourate Advertising.-To publish advertising (whether
printed, radio, display, or of any other nature) which is misleading
or inaccurate in any material particular, or in any material way to
misrepresent any product (including, but without limitation, its use,
trade-mark, grade, quality, quantity, origin, size, substance, char-
acter, nature, finish, material content, or preparation), or credit
terms, values, policies, services, or the nature or form of the business
(5) Price Guaranty.-(a) To guarantee Product Group products
against advance in price for a period greater than 60 days. (b) To
guarantee Product Group products against decline in price. (c)
Clauses a and b shall not apply to original equipment con-
tracts, or to existing after-manrket contracts made prior to December
1, 1933, which by their terms, cannot be terminated, copies of such
contracts to be filed with the Administrative Committee.
(6) Coercion.-To require that the purchase of any goods or
products be a prerequisite to the purchase of any goods or products.
(7) Design Piracy.-The Administrative Committee shall proceed
immediately to prepare rules and regulations to prevent the pira'y
of the design of the products of this Product Group. After such
rules and regulations have been approved by the National Indus-
trial Recovery Board after such notice and hearing as he may pre-
scribe same shall be binding upon all members of this Product
(8) Export.-The provisions of this supplement are not 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, op-
press, 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 on
the proposal by the Product Group or any member thereof if it
appear that the public needs are not being served thereby and ap
changes in circumstances or experience may indicate.
(3) It is contemplated that from time to time supplementary pro-
visions to this supplement or modifications thereof will, after ap-
proval by the Product Group, be submitted by the Administrative
Committee through the Code Authority for their 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 it may prescribe, such supplementary pro-
visions or modifications shall become binding as a part of this
(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 pro-
vision 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 10th
day after it shall have been approved by the President.
Approved Code No. 105--Supplement No. 5.
Registry No. 1404-49.
UNIVERSITY OF FLORIDA
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