Supplementary code of fair competition for the wrench manufacturing industry (a division of the fabricated metal product...

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Material Information

Title:
Supplementary code of fair competition for the wrench manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on April 4, 1934
Portion of title:
Wrench manufacturing industry
Physical Description:
14 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Wrenches -- United States   ( lcsh )
Metal products -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1149-24."
General Note:
"Approved Code No. 84--Supplement No. 15."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931666
oclc - 63655365
System ID:
AA00008104:00001

Full Text


1 Approved Code No. 84-Supplement No. 15
I.


NATIONAL RECOVERY ADMINISTRATION




SUPPLEMENTARY
CODE OF FAIR COMPETITION

FOR THE


WRENCH MANUFACTURING

INDUSTRY
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON APRIL 4, 1934


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


r.ar le by the Superintendent of Documents, Washington, D.C. - Price 5 centa


UNIV. OF FL LO.





u.S. D2POWN09


Registry No. 1149-24
.I


OUR PART

























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.'
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis. Tenn.: 229 Federnl Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.


TYrlac n.,r J














Approved Code No. 84-Supplement No. 15


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE

WRENCH MANUFACTURING INDUSTRY

As Approved on April 4, 1934


ORDER

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
WRENCH MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
I3ETAL FINISHING AND METAL COATING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, and in accordance with
the provisions of Section I of Article VI of the Basic Code for the
Fabricated Metal Products Manufacturing and Metal Finishing
and Metal Coating Industry, approved November 2, 1933, for ap-
proval of a Supplementary Code of Fair Competition for the
Wrench Manufacturing Industry, and the hearing having been duly
held thereon; and the annexed report on said Supplementary 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 Supplementary 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 Supplementary Code of Fair Competition be and it
is hereby approved; provided, however, that the provisions of Arti-
cle V, Section 5, insofar as they prescribe a waiting period between
the filing with the Code Authority and the effective date of revised
price lists or revised terms and conditions of sale be and they are
hereby stayed pending my further Order either within a period
of sixty days from the effective date of this Code or after the com-
512390---482-23-34 (1i






2

pletion of a study of open price associations now being conducted
by the National Recovery Administration.
Huoii S. JOHNsON,
Administrator for Industrial Recovery.
Approval recommended:
A. R. GLxNCY,
Division Administrator.
WASmHNGTON, D.C.,
April 4, 1934.












REPORT TO THE PRESIDENT
The PRESIDENT,
The White House.
SIR: This is a report on the Supplementary Code of Fair Com-
petition for the Wrench Manufacturing Industry, a division of the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, the hearing having been conducted thereon
in Washington, D.C., December 20, 1933, in accordance with the pro-
visions of Title I of the National Industrial Recovery Act.

GENERAL STATEMENT

The Wrench Manufacturing Industry, being truly representative
of this division of the Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating Industry, has elected to
avail itself of the option of submitting a Supplementary Code of
Fair Practice, as provided for in Section 1 of Article VI of the
Basic Code, for the Fabricated Metal Products Manufacturing and
Metal Finishing and Metal Coating Industry approved by you on
the second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Sup-
plementary Code.
Article III establishes a Supplementary Code Authority consist-
ing of three (3) members elected by the members of the Industry at
a meeting called by the Supplementary Code Authority, and gives
the Administrator the authority to appoint one to three additional
members without vote and provides machinery for obtaining sta-
tistics and the administration of the Supplementary Code.
Article IV. This Industry is a division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Code.
Article V provides for price sheets to be submitted to the Supple-
mentary Code Authority.
Article VI sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.
Article VII contains the mandatory provisions contained in Sec-
tion 10 (b) of the Act and also provides for the submission of
proposed amendments to the Supplementary Code.
Article VIII recognizes that price increases except sucn as may be
required to meet individual costs should be delayed.
Article IX provides against monopolies and monopolistic practices.
Article X states the effective date of this Supplementary Code.
(8)








FINDINGS
The Assistant Deputy Administrator in his final report to me on
said Supplementary Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of inter-
state 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 purposes 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 promot-
ing 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 stand-
ards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Supplementary Code as approved complies in all re-
spects with the pertinent provisions of said Title of said Act, in-
cluding without limitation Subsection (a) of Section 3, Subsection
(a) of Section 7, and Subsection (b) of Section 10 thereof; and that
te applicant association is an industrial association truly repre-
sentative of the aforesaid Industry; and that said association
imposes no inequitable restrictions on admission to membership
therein.
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of
said Supplementary Code.
For these reasons, therefore, I have approved this Supplmentary
Code.
Respectfully,
HUGH S. JOHNSON,
Administrator.
APRIL 4, 1934.












SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WRENCH MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

ARTICLE I-PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Supplementary Code is established as a code of
fair competition for the Wrench Manufacturing Industry, pursuant
to Article VI of the Basic Code of Fair Competition for the Fabri-
cated Metal Products Manufacturing and Metal Finishing and Metal
Coating Industry approved by the President of the United States
on the 2nd day of November, 1933, and the provisions of this Sup-
plementary Code shall be the standards of fair competition for and
shall be binding upon every member thereof.
ARTICLE II-DEFINITIONS
The term Industry as used herein means the manufacture and
sale by the manufacturers thereof of wrenches, pliers and/or basic
forms or parts thereof.
The term Member of the Industry includes, but without limita-
tion, any individual, partnership, association, corporation, or other
form of enterprise engaged in the industry either as an employer
or on his or its own behalf.
The term Basic Code means the Basic Code of Fair Competi-
tion for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, as approved by the President
on the 2nd day of November, 1933.
The term Distributor means a purchaser who, in regular course
of business, purchases products of the industry and other products
in like field of distribution for resale generally to persons other
than affiliates.
The term Consumer" means a purchaser of the product of the
industry who is not a distributor.
The term "Institute" means the Institute of Wrench Manufac-
turers.
The terms President", "Act" and Administrator" mean
respectively the President of the United States, Title I of the Na-
tional Industrial Recovery Act, and the Administrator for Industrial
Recovery.
ARTICLE III-ORGANIZATION, POfWERS AND DUTIES OF THE
SUPPLEMENTARY CODE AUTHORITY
1. There shall be constituted a Supplementary Code Authority
consisting of three members who shall be selected within sixty (60)
days from the effective date of this Supplementary Code by vote of







the members of the industry in person or by proxy as in this para-
graph provided.
Pending the selection and until the selection of the Supplementary
Code Authority, the Code Committee shall be the Temporary Sup-
plementary Code Authority with all powers duties and responsibili-
ties herein granted to the Supplementary Code Authority.
For the purpose of the selection of the Supplementary Code Au-
thority the industry shall be divided into the following product
divisions:
1. Drop-forged Wrenches-carbon
2. Drop-forged Wrenches-alloy
3. Detachable Socket Wrenches
4. Chain Pipe Wrenches (Tongs)
5. Adjustable Pipe Wrenches
6. Adjustable Monkey Wrenches
7. Adjustable Wrenches (221/2 degree open end) and Pliers
8. Adjustable Wrenches (Auto, bicycle and miscellaneous
types)
9. Ratchet and Miscellaneous Wrenches
The members of each division shall elect one representative, and
the representatives so elected, by a majority vote, shall select the
members of the Supplementary Code Authority.
Each member of the industry who, by writing filed with the Sup-
plementary Code Authority shall assent to this Supplementary Code
and agree to comply with the terms and conditions hereof, shall be
entitled to vote at all meetings for the selection of the Supplementary
Code Authority and for the selection of substitute members thereof,
and shall be entitled to vote in each division the product or products
of which are manufactured by such member.
2. The term of office of each member of the Supplementary Code
Authority shall be at the will of members of the Industry, and suc-
cessor or substitute members of the Supplementary Code Authority
shall be selected in the same manner as provided in paragraph 1 of
this Article for the appointment of the original members of the
Supplementary Code Authority.
3. In addition to membership as above provided, there may be
appointed by the Administrator one to three members of the Sup-
plementary Code Authority without vote, who shall be given notice
of all meetings of the Supplementary Code Authority.
4. The Institute shall impose no inequitable restrictions on admis-
sion to membership, and shall submit to the Administrator true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such information as
to membership, organization and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
5. In order that the Supplementary Code Authority shall be at all
times truly representative of the Industry, and in other respects com-
ply with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter, if he shall
find that the Supplementary Code Authority is not truly representa-
tive or does not in other respects comply with the provisions of the
Act, may require an appropriate modification in the method of seleo-
tion of the Supplementary Code Authority.






.I ...... .. 7

6. Nothing contained in this Supplementary Code shall constitute
the members of the Supplementary Code Authority partners for any
purpose.
POWERS AND DUTIES

7. The Supplementary Code Authority shall have the following
powers and duties, the exercise of which shall be reported to the
Administrator.
(a) To insure the execution of the provisions of this Supplemen-
tary Code and provide for the compliance by the members of the
industry with the provisions of the Act, subject to rules and regula-
tions of the Administrator in regard to compliance procedure.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of this Supplementary
Code.
(c) To obtain from members of the industry through an impartial
agency such information and reports as are required for the adminis-
tration of this Supplementary Code. No individual reports shall be
disclosed to any other member of the industry or to any other person
except as herein provided but shall be made available to the Admin-
istrator. Nothing herein contained shall preclude full disclosure to
all members of the Supplementary Code Authority as may be neces-
sary for the examination of complaints and securing compliance with
the provisions of this Supplementary Code.
(d) To use the Institute and such other trade associations and
other agencies as it deems proper for the carrying out of any of its
activities provided for herein, provided that nothing herein shall
relieve the Supplementary Code Authority of its duties or responsi-
bilities under this Supplementary Code, and such trade associations
and agencies so used shall at all times be subject to and comply with
the provisions thereof.
(e) To make recommendations to the Administrator for the coordi-
nation of the administration of this Supplementary Code with such
other codes, if any, as may be related to the industry.
(f) Subject to review by the Administrator, to determine the ex-
penses of administration of this Supplementary Code and to secure
payment by the members of the industry of such expenses appor-
tioned between them on the basis of volume of sales in dollars or on
such other basis as shall be equitable.
(g) To recommend to the Administrator further marketing and
fair trade practice provisions to govern members of the industry in
their relations with each other or with other trades or industries, and
to recommend to the Administrator measures for industrial planning
including stabilization of employment.
(h) The Supplementary Code Authority subject to the approval
of the Administrator shall cause to be formulated an accounting sys-
tem and method of cost finding and/or estimating capable of use by
all members of the industry. After such system and method have
been formulated, full details concerning them shall be made available
to all members. Thereafter all members shall determine and/or
estimate cost in accordance with the principles of such methods.
(i) To co-operate with and assist the Basic Code Authority in
administering the Basic Code and in obtaining from members subject








to this Supplementary Code such reports, statistics and other data
as the Basic Code Authority may properly require.
8. If the Administrator shall determine that any action of a Code
Authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the Administrator may require that such action
be suspended to afford an opportunity for investigation of the merits
of such action and further consideration by such Code Authority
or agency pending final action which shall not be effective unless the
Administrator approves or unless he shall fail to disapprove after
thirty (30) days' notice to him of intention to proceed with such
action in its original or modified form.

ARTICLE IV-EMPLOYMENT PROVISIONS
This Industry is a division of the Fabricated Metal Products Man-
ufacturing and Metal Finishing and Metal Coating Industry and
without limitation the wage, hour and labor provisions in Article III
of its basic code as approved by the President November 2, 1933,
including Section 1 of said Article III by which the provisions of
sub-sections (1), (2) and (3) of Section 7 (a) of Title I of said
Act are made conditions of this Supplementary Code, are specifically
incorporated herein and made a part hereof as the wage, hour and
labor provisions of this Supplementary Code.
ARTICLE V-M ARKETING

1. By means of price sheets each member of the industry, within
twenty (20) days after this Supplementary Code shall be approved
by the President, shall publish individual prices, terms and conditions
of sale of all products of the industry offered for sale, which prices,
terms and conditions shall be effective forthwith. Each member of
the industry shall express his prices in the form of net prices or dis-
count from list. Such price sheets shall separately state (a) Net
prices and terms to distributors; (b) Net prices and terms to con-
sumers; (c) Specifications and standard of finish applicable to each
item.
In case a member of the industry shall desire to give different
prices to different sub-divisions of a defined class, then the price
sheets shall clearly describe the subdivisions within the class intended
to be covered thereby, and shall clearly set forth the conditions, if
any, under which a stated price or terms will be given.
2. No member of the industry shall sell to any purchaser by any
means whatsoever any product of the industry at a price lower or at
a discount greater or on more favorable terms than set forth in pub-
lished price sheets of such member at the time outstanding and in
force under the conditions applicable to such sale therein set forth.
3. No member of the industry shall publish a price or terms or
continue in effect a price or terms which will result in a purchaser
paying for the goods received less than the cost thereof to the member
of the industry publishing such price sheet.
Nothing in this paragraph shall preclude any member of the
industry from publishing prices below cost in order to meet existing
competition on products of equivalent size, character, quality or








specifications as such competition is shown by price sheets of other
members of the industry at the time outstanding and in effect.
Whenever a member of the industry under the provisions of this
paragraph shall publish a price below cost, he shall simultaneously
fle with the Supplementary Code Authority a statement in writing
of the items on his own price sheet which are below cost, and identify
the price sheets and items thereon of any other member or members
of the industry which shall be claimed to form the justification.
4. Publication of price sheets shall be in the manner following:
Each member of the industry shall
(a) File a copy of his price sheet with the Supplementary Code
Authority, which shall be open to inspection by any interested
person;
(b) Mail on the same day copy thereof to all known members of
the industry;
(c) Mail on the same day copy thereof to all jobbing and whole-
sale customers of such member.
5. Any member of the industry may change prices, terms and/or
conditions of sale, but no change shall be made or become effective
until after publication of a revised price sheet in the manner pro-
vided in Paragraph 4 of this Article.
A change contained in the published price sheet of any member
of the industry, which shall reduce a price of such member which
has been in effect for five (5) days, shall be effective five (5) days
after the publication of the revised price sheet and not prior thereto.
The foregoing five (5) day limitation shall not apply to price reduc-
tions by any other member of the industry to the extent necessary
for corresponding effective date to all members.1
6. Nothing herein contained shall require publication of specific
prices as provided in paragraph 1 of this article with respect to
sales to purchasers who are manufacturers of machines or equip-
ment and who deliver with such machines or equipment a product
of the industry as a tool or accessory therefore, provided no sale shall
be made by any member of the industry under the provisions of this
paragraph unless
(a) Such member shall include in his published price sheet a
statement that prices therein do not apply to equipment sales ",
and further shall set forth under what conditions and upon what
terms such sales will be made.
(b) The member making such sale shall enter into a contract with
the purchaser that such purchaser:
(1) Will not use the product purchased in his own manufacturing
operations;
(2) Will not separately resell the same or make delivery thereof
except for his own machine or equipment as a tool or accessory there-
for and without separate charge (replacement sales to owners of
such machines or equipment except where standard industry product
is not suitable or convenient for use on such machines or equipment).
One true copy of all contracts entered into under the provisions
of this Section and of all modifications thereof shall be filed with
the Supplementary Code Authority within ten (10) days after
execution thereof.
I See paragraph 2 of order approving this Code.








7. Nothing herein contained shall preclude any member of the
industry from manufacturing and selling a product of the industry
according to special design and upon plans and specifications in
writing agreed to between the said member of the industry and the
buyer without prior publication of price and terms, provided no
sale of any item of special manufacture shall be made at a price
and on terms and under conditions which shall be below the cost
thereof.
No product of the industry shall be sold under the provisions of
this Section unless the same shall be different from an item for
which prices and terms have been published and shall require special
dies or tools for all or a substantial part thereof. No product of
the industry shall be sold under the provisions of this Section below
the published price of a comparable standard item, plus any in-
creased cost of the special item over the cost of the standard item.
8. Notwithstanding the provisions in this Article contained, obso-
lete, defective and/or discontinued items or lines which now or here-
after may be in stock may be sold below cost and without publica-
tion of prices, terms and conditions, provided prior to the sale thereof
a list of the items or lines claimed to be obsolete, defective and/or
discontinued shall be filed with the Supplementary Code Authority,
together with a description thereof, dates of manufacture and prior
sale volume, together with such further information concerning the
same as may be required by the Supplementary Code Authority,
and provided, further, no sale shall be made under the provisions
of this paragraph if the Supplementary Code Authority shall de-
termine that the items or lines proposed to be sold under this para-
graph are not in fact obsolete, defective or discontinued, and that
the purpose or effect of the proposed sale would be an evasion of
this code and unfair to the other members of the industry, and
the Supplementary Code Authority shall advise the member pro-
posing to make such sale of such finding within ten (10) days. Any
action taken by the Supplementary Code Authority under the pro-
visions of this paragraph shall be subject to disapproval by the
Administrator, and if disapproved sales under the provisions of this
paragraph may be made.
ARrICLE VI-UNFAR PRACTICES

In place and in substitution of the fair trade practices set forth in
Article V of the Basic Code, the following acts as described shall con-
stitute unfair methods of competition; and no member of the indus-
try shall do any act or thing in this article described as an unfair
method of competition:
1. Selling under the provisions of paragraph 6 of Article V (" equip-
ment sales ") after knowledge that the purchaser has violated the
terms of a contract referred to in said paragraph, or after notice in
writing from the Supplementary Code Authority that such Author-
ity has determined that such person has violated such a contract.
2. The furnishing of special products of the industry, special parts,
special or different finish, the rendering of any service, or the doing
of any act or thing not included in published prices and terms and
conditions which will make the article delivered of a value greater







than the standard article offered under published prices and terms
and delivered in regular course thereunder, or which will have the
effect of increasing the cost of the goods sold or to be sold, without
charge to cover the increased cost, or the granting to the purchaser of
any other general or specific benefit not granted to all purchasers and
included in published price sheets.
3. Entering into any contract, accepting any order or rendering
any invoice which includes products other than products of the indus-
try, unless the price charged or to be charged for the product of the
industry included therein is separately stated and set forth.
4. Entering into a contract or accepting any order which does not
permit shipment within a period of not more than six (6) months
from the date when shipments shall begin, or a final shipping date
later than seven (7) months from the execution of the contract or the
acceptance of the order.
5. Entering into or accepting contracts, orders or commitments to
sell without corresponding commitment on the part of the purchaser
to buy a specified quantity at a fixed price or a total amount in dollars
according to specifications to be furnished sufficiently in advance of
expiration date to permit manufacture and delivery on or before
expiration date.
6. Paying or allowing any commission or benefit to a distributor
in connection with a sale to any other purchaser if the amount thereof,
when deducted from the sale price, shall make the net to the member
of the industry making the sale less than the price permitted to be
granted such distributor.
7. Making any payment or allowing any credit or benefit to a dis-
tributor or to any purchaser or prospective purchaser not connected
with a sale.
8. Making any payment or allowing any credit or benefit to dis-
tributor in connection with a sale made under the provisions of
paragraph 6 of Article V. (" Equipment Sales.")
9. Giving, permitting to be given, or directly offering to give, any-
thing 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 em-
ployer, principal or party. Nothing in this paragraph shall be con-
strued to prohibit free and general distribution of articles commonly
used for advertising except so far as such articles are actually used
in commercial bribery as hereinbefore defined.
10. Making any adjustments, allowances, credits or refunds upon
change in published prices, terms and/or conditions to any purchaser
for deliveries already made or with respect to contracts theretofore
entered into.
11. Promising or allowing protection to a purchaser or prospective
purchaser against changes in prices, terms and/or conditions.
12. Giving notice to any purchaser or prospective purchaser or to
any other member of the industry of intention to change prices, terms
and/or conditions of sale.
13. Taking in exchange the product of any other member of the
industry from a purchaser thereof, and making any payment or
granting any credit to such purchaser in connection therewith.








14. Making delivery of any product of the industry on memoran-
dum or consignment except under circumstances to be defined by
the Supplementary Code Authority and approved by the Adminis-
trator where peculiar circumstances of the industry require the
practice.
15. Making delivery of any product of the industry except upon
the sale thereof, provided nothing herein contained shall preclude
delivery of samples, but no delivery which shall exceed three items
or standard sets shall be deemed a sample.
16. Including in or omitting from any invoice, any statement so
that the invoice shall not be a true statement of the transaction be-
tween the member of the industry and the purchaser.
17. Pre-dating or post-dating of any invoice or contract of sale.
18. Promising to sell, selling or delivering nonstandard grades,
sizes, dimensions or classifications for the purpose or with the effect
of evading the provisions of this Supplementary Code.
19. 'Making any express guarantee with respect to a product of
the Industry except an express guarantee against defects in work-
manship and material.
20. Making any allowances for advertising in any form.
21. Making refunds, adjustments or allowances to a purchaser
except as necessary in good faith.
22. Publishing different prices, terms and/or conditions of sale for
a special brand, an unbranded product, and the manufacturer's own
brand, or making any distinction or difference in prices, terms I
and/or conditions of sale where the product is the same except for
brand markings.
23. Doing any act or thing by recourse to or through the medium
of a subsidiary or affiliate or exclusive distributor which a member
of the industry is prohibited from himself doing under the provisions
of this Supplementary Code.

ARTICLE VII-GENERAL

1. When the Supplementary Code Authority determines that an
emergency exists in this industry and that the cause thereof is de-
structive price cutting such as to render ineffective or seriously en-
danger the maintenance of the provisions of this Supplementary
Code, the Supplementary Code Authority may cause to be determined
the lowest reasonable cost of the products of this industry, such de-
termination to be subject to such notice and hearing as the Adminis-
trator may require. The Administrator may approve, disapprove
or modify the determination. Thereafter during the period of the
emergency it shall be an unfair trade practice for any member of
the industry to sell or offer to sell any products of the industry for
which the lowest reasonable cost has been determined at such prices
or upon such terms or conditions of sale that the buyer will pay less
therefore than the lowest reasonable cost of such product.
When it appears that conditions have changed, the Supplementary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.
2. Whenever a person, by stock ownership or otherwise, shall con-
trol the manufacture and sale of a product of the industry manu-







factured by a member of the industry, such person shall, with re-
spect to the sale of such product of the industry, be subject to the
terms and provisions of this Supplementary Code, and the same
shall be binding upon such person (Article IV hereof excepted).
3. Nothing in Articles V and VI of this Supplementary Code
applies to sales between members of the industry, except no sale
shall be made by one member of the industry to another member of
the industry below cost.
4. Nothing in Articles V and VI of this Supplementary Code shall
apply to export sales.
5. In case any member shall have reason to believe that any of the
terms and conditions of this Supplementary Code are being violated,
such member may file with the Supplementary Code Authority a
complaint setting forth the action or mode of action complained of.
The Supplementary Code Authority shall thereupon request the
complainant and the member complained against to each appoint
an arbitrator; the two arbitrators so appointed shall appoint a third;
the arbitrators so appointed shall then examine into the facts,
granting to the complainant and the member complained against full
opportunity to be heard, and each shall furnish to the arbitrators all
facts relative to the complaint as may be requested by the arbitra-
tors. The arbitrators shall thereupon render a report in writing
setting forth the facts so found, together with their opinion and
recommendations.
In case the arbitrators shall determine that any member has vio-
lated this Supplementary Code, then the Supplementary Code Au-
thority, upon recommendation of the arbitrators, shall make such
representations and applications to such persons as is proper and
permitted in the premises.
In case the arbitrators for any reason shall not be appointed within
ten (10) days after notice from the Supplementary Code Authority
that complaint has been filed, then the Supplementary Code Au-
thority shall act as arbitrator and shall hold hearings and render a
report and opinion and take further action as hereinbefore provided.
6. This Supplementary Code and all the provisions thereof are
expressly made subject to the right of the President, in accordance
with the provisions of 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 Title I of said Act and specifically, but
without limitation, to the right of the President to cancel or modify
his approval of any provision of this Supplementary Code or of any
condition imposed by him upon his approval thereof.
7. This Supplementary Code, except as to provisions required by
the Act, may be modified and/or amended on the basis of experience
or changes in circumstances, such modifications and/or amendments
to be based upon application to the Administrator by the Supple-
mentary Code Authority or other representative group within the
industry, and such notice and hearing as the Administrator shall
specify, and to become effective as part of this Supplementary Code
on approval of the President, and/or of the Administrator.
8. In case any provision of this Supplementray Code shall impose
unusual or undue hardship on any member of the industry, such




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revision may be suspended as to such member by the Suppementwip
Code Authority with the approval of the Administrator.
ARTICLE VIII-MONOPOLIES
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. Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except as may be required to meet individual cost should
be delayed, but when made such increases should, so far as possible,
be limited to actual additional increase in the seller's costs.
ARnCLE IX-EFFECTIn DATE
1. This Supplementary Code shall become effective at 12:01 A.M.
on the tenth (10th) day after approval of same by the President.
Approved Code No. 84. Supplement No. 15.
Registry No. 1149-24.