Supplementary code of fair competition for the hoisting engine manufacturing industry (a division of the machinery and a...


Material Information

Supplementary code of fair competition for the hoisting engine manufacturing industry (a division of the machinery and allied products industry) as approved on June 12, 1934
Portion of title:
Hoisting engine manufacturing industry
Physical Description:
13 p. : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Hoisting machinery -- Law and legislation -- United States   ( lcsh )
Portable engines -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1312-04."
General Note:
"Approved Code No. 347--Supplement No. 19."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931628
oclc - 646306738
System ID:

Full Text

re 6, (E SperlatendEnt of Documents. Washlag6oa, D.C. - Price 5 conta





(ADivision of the Machinery and Allied Products Industry)



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This publication is for sale by the Buperintendent of Documents, Government
Printing Offce, Washington, D.C., and by district ofl~ees of the Bureau of
Foreign and Domestic Commerce.
Atlanta, Ga.: 504 Post Offiee 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 Welle Street.
Cleveland, Ohio: Chamber of Commerce.
Dallars, 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 Federal 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 Of~ce Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Offie Building.


l Approved Code No. 347--Supplement No. 19

As Approved on June 12, 1934




SAn application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
'Recovery Act, approved June 16, 1933, for approval of a Supple-
miental Code of Fair Competition for the Hoisting Engine M'anu-
facturing Subdivision of 1Machinery and Allied Products Industry,
and hearings having been duly held thereon and the annexed report
on said Supplemental Code containing findings with respect thereto,
having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugah S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Supplemental Code complies in all
respects with the pertinent provisions and will promote the policy and
purposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Competition be and it is hereby approved
subject to the condition that the provisions of Article VIII, Section
S(a), insofar as they prescribe a waiting period between the filing
with the Code Auth~orit~y (or such agency as may be designated irr
the Supplemental Code) and the effective date of price lists, as
originally filed and/or revised price lists or revised terms and con-
ditions of sale, be and they hereby are stayed pending my further
HUan S. JoaNsox,
Administrator for Indulstrial~ Recovery.
Approval recommended :
Daivisio Administrator.
WBBsmwazoN, D. C.,
June 10, 193
60704"---657-103 34 1


The TVrkte House.
SmE: This is a report on the Supplemental Code of Fair Compe"ti-.
tion r h Hoisting Engine Mnfacturing Sbiiino h
Machinery and Allied Products Industry, public hearing havg
been conducted thereon in Washington, D.Ci., December 8, 1988, n
reconvened December 21, 1933, in accordance with the provisions of
Title I of the National Industrial Recovery Act. Every person
who fied a request for an appearance was freely heard mn publie
and all statutory and regulatory requirements were complied with.

The Hoisting Engine Manufacturers Association, "truly
representative of this Subdivision of the Machinery and Al rd
ucts Industry, has elected to avail itself of the option of submitt~ingr
a Supplemental Code of Fair Competition, as provided in paragraph
(2), Article I of the Basic Code for the Machinery and Alh'ed Prod-
ucts I~ndustry approved by you on the seventeenth day of March,
This Subdivision represents a part of the capital goods industry,
manufacturing and selling power-operated hoisting and winding en-
gines such as are used in construction work, sand and gravel opera-
tions, logging and dredging and special modifcations thereof, in-
cluding accessory equipment used therewith such as derricks, whirlers
and cablewfays, and spare, repair and replacement parts thereof, but
not including the type commonly known as mine hoists.

No estimate of the total employment is available, but it has been
assumed that the trend reflected by summarized questionnaire returns
from fourteen establishments is representative of the rate of decline
in employment for this Subdivision of the Industry as a whole.
This subdivision of the Industry is still suffering from the elercts
of the depression. Annual sales decreased approximately 82 per cent
and employment approximately 63 per cent from 1929 to 1982.
Approximately 50 per cent of the employees in June, 1938, were
woorknmg more than 40 hours prweek and 14 per cent were receiving
less than 40 cents per hour with the minimum wage ranging between
25 and 30 cents.
From the statistics available, the average work-week in 1929
amounted to 52.2 hours, decreasing to an average of 35.4 hours per
week for the first six months of 1933.

-r The minimum hourly rates: in the approved Basic Code consist
of one differential: fa:t th South and three city population differ-
entials for aill other Sections of the United States, as follows:
Over 50,000: population__._,_... ...... ___ ...-- 400 per hour
Over 10,00(M50,000 population,, ...... _------ 384 per hour
10,000 population and under ------ ,----..- 36#~ per hour
South,-,,-- -, ----.. ---- -----. -- 32e per' hour
;;In addition to the minimum wage rates shown above, the Basic
Code provides that women engaged in substantially the same work
as men shall receive the same rate of pay as such men employees.;
that the minimum wage for women employees engaged in plant
operations shall be not less than 87.5 per cent of the proper rate for
the locality in which employed as specified; and that the minimum
th the South shall not be less than 32 cents per hour.
Based on the distribution as of June 15, 1933, and on the specified
percentages of the number of workers receiving less than the desig-
nated rates as shown in the table below, the adoption of the proposed
minimum rates will probably cause an increase in factory payrolls.
The estimated increase as of June 15, 1933, regardless of location
of the workers, will probably, under the most favorable conditions,
not exceed 1.5 per cent assuming only upward adjustment in the
brackets below the 40 cent minimlum and no change in man-hour
Eatinated member of factory scorkiers receiz-in! less than designated hourly rates

Distribution of factory
workers receiving less
than tbo minimum re-
Minimum hourly rates grls flcto
Approximate Approximate
percent number

40o nts (other U .S .)..... .... .... .... .... .... .... .... .... .... .... 14.0 50
38 cents (other U .8.)..........-_----.............................. 10. 8 45
36 cents (other U .S.)..... ..... .... ..... .... ..... ..... .... ..... .... 7. 6 32
32 cents (Sout~h).... ... .... ... ... .... ... ... .... ... ... .... ... ... 3. 8 16


Article I: states the purpose of the Supplemental Code.
Article II accuratelyr defines specific terms employed in this Sup-
l~emental Code.
Article ITII The labor provisions of the Basic Code for the Ma-
chi~nery and Allied Products Industry as approved MIarch 17, 1934~,
are incorporated by reference as the larbor provisions of this Supple-
mjental Code.
Article IV adopts the relevant portions of Article VI, "Adminis-
t-a~tifon "; and Articles VIII, "' Modifications and Termination ", and
IX, Withdrawal of the Basic Code for the Machinery and Allied
Products Industry, as approved March 17, 193~4..
Article V establishes a Code Authority consisting of four members.
Oe additional member may be elected from the nonmembers of the
applicant association if so desired by such nonmembers. The Ad-

ministrator in his discretion may appoint one additioaal membr~i
(without vote and without expense to the Subdivision). Tf~opitheg
with the applicable provisions of the Basic Code, mechanma is
provided for the administration of this Supplemental Code.
Article VI provides for an accounting system and methods of
cost finding and for estimating.
Article VII provides for the determination of a lowest reasonable
cost during an emergency caused by destructive price-outting and
provides exceptions thereto as regards distress stocks and on products
of similar design and imports.
Article VIII provides for methods of setting p, _eareingan
filing prielssaddson hesadtrso aeadpyet
Article IX provides certain standards as to prices, terms and con-.
ditions of payment, peculiar to this Subdivision, with a view of
eliminating unfair competition in this Subdivision.
Article XY sets forth the unfair trade practices which have.been
especially designed to effect fair competition in this Subdivision.
Article XI define~s export territory and provides that filed price
lists are not applicable to export shipments.
Article XII contains the mandatory provisions contained in See?-
tion 10 (b) of the Act and also provides for the submission of pro-
posed amendments to the Supplemental Code.
Article XIII provides for the withdrawal of this Subdivision from
jurisdiction of the Basic Code and for the continued functioning of
this Subdivision as an individual industry under its own code.
Article XIV stipulates that there shall be no inequitable restric-
tions and provides against monopolies.
Article XV gives the effective date of this Supplemental Code.
The Deputy Administrator in his final report to me on said Sup-
plemental Code having found as herein set forth and on the basis
of all the: proceedings in this matter:
I[ find that:
(a) Said Supplemental Code is well designed to promote the poli-
cies and purposes of Title I of the National Industrlal Recovery Act,
including removal of obstructions to the free flow of itrtt n
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,
by avoiding undue restriction of production (except as may be tempo-
rarily requiredd, by increasing the consumption of industrial and
agricultural products through increasing purchasing powerbre
during and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000 em-
ployees, and is not classified by me as a major industry.

(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof ; and that the
apphicant association is an industrial association truly representative
of th~e aforesaid subdivisioni of the industry; and that said associa-
ties~ ~imrposes no inequitable restrictions on admission to membership
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate~ or oppress small enterprises and will not operate to discriminate
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
Supplemental Code.
For these reasons, therefore, I have approved this Supplemental
'Code, provided that certain provisions relating to price publication
are stayed as stated in the order.
Hrsan S. JoHNson,
JUNE 19, 1934.



To effectuate the policy of Title I of t'he National Indnetral' 10
cover Act, the following provisions are established as a Su~pple-
mental Code for the Hoisting Engine Manufacturing Subdivision of
the Machinery and Allied Prodiucts Industry, and together with theo
Code of Fair Competition of Machinery and Allied Produc~ts In-
dustry shall be the standard of fair competition for this subdivision,
and shall be binding on every employer therein.

"'Applicant means the Hoisting Engine Mlanufacturer's Associa-
tion, a trade organization, which organization is truly representative
of this subdivision, all members of which are engaged in the manu-
facture for sale of the products of the Hoisting Engine Manufactur-
ing Subdivision of the Miachinery and Allied Products Industry.
Industry means the Mfachinery and Allied Products Industry,
as defined in its National Industrial Recovery Code as approved by
the President, and as such definition may from time to time be
"i Subdivision means this Hoisting Engine Mianufacturers sub-
division of the MUachinery and Allied Products Industry as defined
and setfrthl in Pragraph fourteen of Article II of t~he National
Indstral ecoeryCoe of the Machinery and Allied Products
Industry as follows:
Hoisting Engine Mianufacturinga Subdivision means the manufao-
ture for sale of power-operatedl hoisting or winding engines such as
are used in construction work, sand and travel operations, logging,
and dredging, and special modifications t'iereof, including accessory
equipment used therewith such as derricks, whirlers, and cableways,
and spare, repair and replacement parts thereof, but not including
the type commonly known as mine hoists, and includes all those en-
gaged in such manufacture for sale.
The foregoing Definition shall not permit the manufacture for
sale under this Supplemental Code of electrical products included
within the scope of the Electrical Mlanufacturing Industry as de-
fin'ed in the Code of Fair Competition for said Industry, except
where such electrical products are sold as a part of the products
of this Subdivision and are not sold as separate electrical products
mn competition w~it.h similar products included within the scope of the
Electrical Manufacturing Industry as defined in the Code of F'air

. Competition for said industry; provided, however that any em-
i pldoyer hereunder may manufacture and sell under this Supplemental
Code any spare- and/or replacement parts of any such electrical'
productss for use with products defined hereunder, which were
originally manufactured and sold by him.
WThen carried on at the point of installation, the work of install-
ing, wreeting, rebuilding and/or servicing of the products of the
Subdivision, (including attachments, accessories and/or replacement
and repair parts therefore, included within the definition of the
SSubdivlsion) shall be subject to the provisions of this Supplemental
Code, only when performed b the employer hereunder selling such
products or by a company filiated therewith.
Code means the National Industrial Recovery Code of the
Machinery a~nd Allied Products Industry3~, as approved by the Presi-
dent, March 17, 1934, and as from time to time amended.
"L Person means a natut-al person, a. partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
"L Employer ") means any person engaged in the Subdivision either
on his own behalf or as an employer of labor.
Employee means any one who is employed in the subdivision
by any such employer.
The Act means Title I of the National Industrial Recovery
C The President means the President of the United States.
The Administrator means the Administrator for Industrial
".;~ Basie Code Authority means the Code Authority for the Mla-
chinery- and Allied Products Industry as constituted by the Code.
Code Authority means the Code Authority constituted for
this Subdivision as provided by the Code and by this Supplemental
Group Code Authority means the Code Authority for any
group or product classification within this Subdivision.
L Publis~h ") means to make available to the public.
"L New Products "' shall mean a machine or attachment which has
notf previously been sold and placed in the possession of a purchaser,
nor rented or used as a demonstrator prior to the approval of this
'Supplemental Code.

The following Articles of the Code, viz; Article ~II, "L Working
.Hours "; Article IV Wages "; and Article V, General Labor
Provisions are hereby made a part of this Supplemental Code, with
.the same effect as if they were written into this Supplemental Code.

Tfhe following Articles of the Code, viz; Article VI, "LAdministra-
tion ", to the extent that it shall be applicable to the administration
of tihis Supplemental Code as such or as it may hereafter be ad-
ministered as an autonomous Code; Article VIII, Modifications

and Termination "; and Article IIX Withdrawal ", -are hereBby'
adopted and made a part of this Supplemental Code with the sagne
edlect as if they were written into this Sjupplemental Code. ^
Anzarse V--ADMINISntTlr&ON
()The Code Anthority for this Subdivision shall consist orf:
()The Executive Committee of Applicant, consisting of four
(2) One additional member may be elected in any fair manner
with the approval of the Administrator, by cooperating employersr
in this Subdivision not members of the Applicant, if so desired by
such non-members.
(3) The Administrator, in his discretion, may appoint one ald-
ditional member (without vote and without expense to the
Any vacancy on the Code Authority due to death, resignation, or
because a member thereof has ceased to be connected with this Sub-
division shall be filled at a meeting of employers called by the Code
Authority on at least ten days' notice by registered mail sent to all
employers in this Subdivision, and in a manner similar to the manner
in which the retired member was ori4ginally selected.
(b) Any employer in this Subdivlsion shall be eligible for.merm-
bership in Applicant.
(c) In order that the Code Authority shaUl at all times be truly
representative of the Subdivision and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of thie Code
Authority, or any Group Code Authority.
Action by employers In a~ny Subhdivision meeting for the adoption
procedural rules, revisions or additions to this Supplemental
odor the transaction of other business of the Subdivision shall be
by vote of employers entitled to vote as provided in this Article V,
who are present in person or by proxy duly executed and filed with
Code Authority. Any such action taken at any meeting of em-
ployers shall be by majority vote cast and computed on the basis of
one vote for each employer, unless otherwise provided in this Sup-
plemental Code.
(d) Any employer in this Subdivision shall be entitled to voted at
the election of (subject to Section (a) hereof) and share in the
benefits of the activities of the Code Authority and may part~icipate~
in any endeavors of the Code Authority in the preparation of any
revisions of, or additions or supplements to this Supplemental Code
by paying his proper pro-rata share of the reasonable cost of adminis-
tering it, as determined by the Code Authority.
(e) If formal complaint is made to Code Authority, that provi-
sions of this Supplemental Code have been violated by any employer,
the Code Authority may, to the extent permitted by the Act, cause
such investigation or audit to be made, as may be deemed necessary.

Aanner~w VE----Accouncrlf .aND COSTING

Pi The; Code; Au~xthorit shall cause to be formulated an accunting
system and methods costt finding and/or estimating cpable o
uase by all employers in the Subdivision. After such system and
ii- methods have been formulated, full details concerning them shall be
rmadi "available to all employers. Thereafter all employers shall
d~etermine and/or estimate costs in accordance with the principles of
such methods.

(a) When the Code Authority determines that an emergency exists
i:tbs ti Subdivision and that the cause thereof is destructive price-
enetinag auch as to render ineffective or seriously endanger the mainte-
nance of the provisions of this Supplemental (Tode, the Code Authorl
ity ana cause to be determined. the lowest reasonable cost of the prod-
netst of this Subd~ivision, such determination to be subject to such
not~ie, and hearing as the Administrator may require. The Admin-
i 1trtatr may approve, disapprove, or modify the determination.
Thereafter, during the period of the emergency, it shall be an unfair
trade .practice for any employer of the Subdivision to sell or offer
.I tos~aell any product of the Subdi vision for which the lowest reasonable
cost has been determined, at such prices or upon such terms or condi-
tions of sale that the buyer. will pay less therefore than the lowest
reasonable cost of such products.
When it appears that conditions have changed, the Code Authority,
upon. its own initiative or upon the request of any interested party,
sh. all esuse, the determination to be reviewed.
(b) The foregoing Section (a) shall not apply to () dropped
lines, or (.a) seconds, or (3) inventories which must beconverted
into ash to meet emergency needs, all of which may be disposed of
by: any employer at any price and on any terms or conditions, but
only if such employer, not less than two weeks before such proposed
dispsalhas filed with Code Authority a statement in writin~
stettn orth the facts of, and reasons for, such proposed disposes
andtheprice and terms and conditions of salsa, and Code Authority
has nrot, with the approval of the Administrator, before the termina-
tion of such two week period, in writing, disapproved the proposed
clisposerl. Notice of such disposal, if not disapproved, shall be sent
immediately to all employers manufacturing products of equivalent
design, character, quality or specifications, and participating in this
Supplemental Code as described in Article V, Section (d), who may
se~ll such products at prices and on terms and conditions as favor-
a~ble its thse stipulated in the proposed disposal.
(c) Wgh~en: prices of competing products manufactured outside the
United St~ates are lower than the established lowest reasonable cost,
any employdr may sell at prices and on terms and conditions as
favorable as those of the competing foreign product.

ARrrzCLE VIII-PaznI3 Lzars

(a) If and when the Code Authority determines that in a~ny grapoi
of the Subdivision it has been the generally recognized prarctice to
sell a specified product on the basis of printed net price lists, or
price lists with discount sheets, and fixed terms of sale sad pay-
ment, each employer shall, within ten days after notice of such
determination, file with the Code Authority a net price lisat, or a
price list with discount sheet, as the case may be, individuarlly pre-
pared by him, showings his current prices, or prices and discounts,
shipping weights, and terms of sale, and payment and the Code
Authority shall imlmediatelg publish and send copies thereof to all
employers who are cooperating under this Supplmna oe
Revised price lists and discount sheets anPd termsa Cofae an
payment may be filed from time to time thereafter with the Code
Authority by any manufacturer of such product, to become operative
upon the date specified therein, but such revised price lists and dis-.
count sheets and terms of sale and payment shall be filed with the
Code Authority not less than ten days in advance of the elfecti~ve
date. Copies thereof, with notice of the effective date specified, shall
be immediately published and sent to all known manufacturers of
such product, who are cooperating under this Supplemental Code
any of whom may file, if he so desires, revisions of his price lists and
discount sheets and terms of sale and payment, which shall become
effective upon the date when the revised price list and discount sheet
and terms of sale and payment first filed shall go into effect.'
(b) If and when the Code Authority shall determine that in any
group of the Subdivision not now selling its product on the basis-
of price lists, with or without discount sheets, with fixed terms of
sale and payment, the distribution or marketing conditions in the
group are th~e same as, or similar to, the distribution or marketing
conditions in a group where the use of price lists, with or without
discount sheets, and fixed terms of sale and payment is well recog-
nized, and that a system of selling on net price lists or price lists
and discount sheets with fixed terms of sale and payment should be
put into effect in such group, then each manufacturer of the product
or products of such group shall within twenty days after notice of
such determination, file with the Code Authority net price lists or
price lists and discount sheets, with fixed terms of sale and payment,
showing his current prices and discounts and terms of sale and pay-
ment, and such price lists and discount sheets and terms of sale
and payment may be thereafter revised in the manner hereinbefore
provided. Provided that Code Authori~ty~ shall make no determina-
tion, to place any product of the Subdivision (not now on a price
list basis) on a price list basis, as provided in this paragraph (b) of
Article VIII unless affirmative consent to such determination is
given by a 662/39' vote of employers who are cooperating under this
Supplemental Code and who are at that time engaged mn manufao-
turmng such products.
(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions
a See paragraph 2 of order appnrving this Code.


o~F~th~is'Articl VIII-at a price or at discounts, or on terms of sale
and payment ditferent from those provided in his own current net
price -istsi or price lists and discount sheets, and terms of sale and
payment .

(a) Any place at which a manufacturing plant producing a prod-
tactof this Subdivision is .established may be used as a, place from
phiich the freight shall be added to the filed price of the product,
provided that the employer specifies such place or places in his
published price list. All prices and quotations made by an employer
shal~l be F.O.B. such specified place or places.
(ib) New machines or attachments shall be sold only under firm
sales contracts or firm purchase orders, and such contracts or orders
sRhall provide for shipment within six months of the date the con-
tract or order is signed by the purchaser.
S(c) When sales of a new product are made on a net cash basis, and
no cash discount is involved, the contract of sale shall provide that
fkull payment, in cash orr negotiable check be made by purchaser
within thirty days from the date of shipment. When, however, full
payment Is made within ten days from date of shipment, a cash dis-
*count of not to exceed five percent (5%/) of the F.O.B. price may be
allowed .
;(d) In the case of sale of a new product to an ultimate consumer
on deferred payment terms, a, cash payment of not less than twenty-
five percent of the total sales price must be Inquired, and the unpaid
balance of the purchase price shaHl be made payable in equal monthly
installments, the first installment to be payable in not more than
thirty days, and the last installment to be payable in not more than
nine months from the date of shipment. All installments shall be
evidenced by notes bearing date of the day of shipment, and drawv-
'ing interest at not less than six percent per annum therefrom unless
the laws of the particular State governing the contract stipulate
otherwise as to interest rate chargeable.
(e) All contracts for the sale of a new product shall require the
payment in lawful money of the full current price of such product.
(f) In the sale of a new product, no express guaranty of materials
and. workmanship shall be made to be effective beyond twelve months
~after date of shipment.
(g) Employer s guarantee of performance for any machine shall
bse limited to an agreement to duplicate performance claimed in his
Published literature using uniform methods for testing prescribed
- the Code Authority and approved by the Administrator. No sale
a niew product shall be made subject to acceptance after a trial
or demonstration on the purchaser's job, except that in the case of the
first; new product of any distinctly new type or size, with new model
designation, if no product of the same type and size has previously
been sold, or in any case where a product may be sold to be employed
for a distinctly recognized new use, any employer may include in
the contract of sale a provision permitting rescission of the contract
by the customer within ninety (90) days from date of shipment. ..


(h) No employer shall sell his product on any but the urnit; ~i~es
(i) No employer of the Subdivision shall require that the ptirchAse
or lease of any products of the Subdivision be a prerequisite to the8
purchase or lease of any other products.
Each of the following acts and practices is deemed to be inimical
to the best interest of the Subdivision, and of the public andl ea~ch is,
therefore, hereby declared to be, and to constitute, an unfair method
of competition and is hereby prohibited; viz:
1. The secret payment or allowance of a rebate, refund, commis-
sion, credit., unearned discount, or excess allowance in the form o~f
money or otherwise, or the offering; or extending to any customer
any special service or privilege not extended to all customers of the
same class, for the purpose of influencing the sale.
2. The payment, or promise to pay to any agent, fiduciary, or
representative, of money or valuable thing, with or without the
knowledge of his principal, for the purpose of influencing any sale
to his principal. This provision shall not be construed to prohibit
free and general distribution of articles commonly used for ad-vertis-
ing, except so far as such articles are actually used for commercial
bribery as hereinabove defined.
3. Any discrimination between purchasers of the same class, by
the sale of any article having a published price, at any price below
the seller's published price, by means of direct or indirect price con-
cessions, or by means of any privilege not extended to such pur-
chasers generally.
4. No employer of the Subdivision shall publish advertising
(whether prmted, radio, display, or of any other nature), which is
misleading or inaccurate in any material particular, nor shall any
employer in any way misrepresent any goods (including but without
limitation its use, trade-mark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material, content or preparation)
or credit terms, values, policies, services, or the nature or form of the
business conducted.
5. The publishing or circularizing of threats of suits for infringe-
ment of patents or trademarks, or of anly other legal proceedings, not
in good faith, which would tend to harass competitors or intinudate
their customers.
6. The renting of any new product where the object is to convert
the transaction into a sale, provided however that this Section (6)
shall not prevent the renting of products of the Subdivision on Bail-
ment leases in those states where such transactions are legally
7. The engaging in destructive price-cutting by any employer in
this Subdivision.

AnTcLe XI SALms won EzrozRT

The provisions of this Supplemental Code concerning pricing and
marketing are not to apply to direct export sales of any product. A

si:.,.tm ilar exemption may be granted by the Code Authority as to sales
o"~'-'~if any product destined ultimately for export. Unless otherwise
determined by the' Code Authority, the term "' export shall include
shipmets to rall places without the several states of the United States
andtheDistrict of Columbia; provided, however, that no shipment
to; any territory or possession of the United States shall be consid-
erred an export when any employer is engaged in the Subdivision in
suhterritory or possession.

(a) As provided by Section 10 (b) of the Act, the President
maky from time to time cancel or modify any order, approval,
license, rule or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions, or supplements of this
Sipplemental Code, proposed by Code Authority, and approved
by a seventy-five percent vote of the cooperating employers, shall
be in full force and effect upon approval by the Administrator.
The eligibility requirements, method, and effect of such voting shall
:~~ 'be the same as provided by Article V, hereof.
ARTILnE XIII-W~rtun~aawL

Upon thirty (30) days' notice to Basic Code Authority and to
II:: the Adrministrator, thisSubdivision may, upon the affirmative vote
of not less than 662/3% of the employers within the Subdivision with-
draw from the jurisdiction of Basic Code Authority. The eii
biliity of voters and the methods and effect of such voting shall b
in accordance with the provisions of Article V hereof. Thereafter,
this Supplemental Code, together with the provisions of the Code,
except such portions of Article I, II, VI and VII as are not perti-
I~ -nent thereto, as determined by the Code Authority and Admimstra-
tor, shall become and be the code governing this Subdivision and
the Code Authority shall for this Subdivision, become and be the
only Code Authority, and shall perform all the functions with
i~. respect thereto.

; Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemental Code presented by it is
not designed to promote monopoly, and shall not be so construed or
applied as to oppress or eliminate smaUl enterprises or discriminate
against then, and is designed to effectuate the policy of the Act.

This Suxpplementatl Code shall become effective and binding on all
.persons engaged in the Subdivision on the eleventh day after its
SApproved Code No. 347---8npplement No. 10.
B!;~ egistry No. 1312--0.


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