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


Material Information

Supplementary code of fair competition for the steam engine manufacturing industry (a division of the machinery and allied products industry) as approved on June 11, 1934
Portion of title:
Steam engine manufacturing industry
Physical Description:
14 p. : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Steam-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. 1312-03."
General Note:
"Approved Code No. 347--Supplement No. 16."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931627
oclc - 646309798
System ID:

Full Text

Fier esle by the Superintendent of Documents. Washington, D.O. - Price 5 cents

Registry No. 1812--03

.4ppgroved Code No. 347-SZuppleme~nt No. 16






(A Division of the Mlachinery and Allied Products Industry)


This publication is for sale by the Superintendent of Documents, Government
Printing Offirc, Washington, D.C., and by district bfhces of the Bureau of Foreign
and Domestic Commerce.
Atlanta, Ga.: 504 Post Ofhee Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Matss.: 1801 Custombouse.
Buifalo, 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.: Chamnber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
JIndianapolis, Ind.: Chamber of Commerce Building.
Jacksonv~ille, Fla.: Chamber of Commerce Building.
Kiansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles,~ Calif.: 1163 South Broadw~ay.
Louisville, Ky~.: 408 Federal Building.
Mlemphis, Tenn.: 229 Federal Building.
Milnneapolis, Minn.: 213 Federal Building.
Nrew Orleans, La.: Room 225-A, Customhouse.
NNe Y'ork, N.Y.: 7341 Custombouse.
Norfolk;, Va.: 406 East Plume Street.
Phliladelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Offce Building.
St. Louis, Mfo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 347P-Supplement No. 10



As Approved on June 11, 1934




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 Suipple-
mental C~ode of Fair Competit~ion for t-he Steam Engine Manufac-
turing Subdivision of ManchineryS andi AlliedZ Products Industry, and
hearingsj having been duly held thler~eon and the annexed report oni
said S~upplemental Code, containing findings with respect thereto,
having been made and directed to the President.:
NOW', THEREFORE, on behalf of the President. of the ULnited
States, I, Hugh S. Johnson, Administrator for Ind~ustrial Recovery,
pursuant to nulthority vested in mne by Executive Orders of the
President, including Executive Order No. 6543--A, dated December
30, 1933, and otherw~ise- do hereby incorporate by reference said
annexed report and do find that said Supplemlental Code complies
in all respects with the pertinlent provisions and will promote thie
policy and purposes of said Title of said Act; and do hereby order
that said Suplplemnental Code of Fair Comnpetition be and it, is hereby
approved subject to the following conditions:
1. That the. provisions of Article V'III, Section (a) insofar as they
prescribe a awaiting period between the filing w5it~h the Codle Authority
(or such agency as mnay be designated in the Supplemnental Code)
and the effective date of price lists, as originlly 13 filed and or r~evisedl
price lists or revised terms and conditions of sale, be and they hereby
are stayed spending my further order.
2. That t~he provisions of the second paragraph of Article V'III,
Section (d) be and they herebyl are stayed spending the submission
of satisfactory evidence concerning distribution of the products of
the Subdivision to the Admninistrator.
3. 'That the provisions of Article IX. Section 5 to 10 inclusi\e;
he and they hereby ar~e stayed for a period of fifteen (15) days;
60507"- 65-d7-OS8--34 (1)

thecn to become detective unlless I, by my further order otherwise
direct; within w~hichi timeir cause may be shown, if any there be,
w~hy the above p~rovisions rlhould not become effective; and that the
Temp'orary Code Author~ity send notice of the stay of these pro-
visions andr of the opportunity to show cause why they should not
becomec effective to all known employers of the Subdivision.
HUan S. JoHNsoK,
~d~ministrator for Industriall Recovery.
Approval recommended :
Divis~iion Administrator.
Woman~crow, D.C.,
Jun~e 11, 19;34.


T~he Wh~ite Hous~e.
Sm: This report relates to the Supplemental Code of Fair Com-
petition for the Steam Engine Manufacturing Subdivision of Ma-
chinery and Allied Products Industry as proposed by .the Steam
Engine Mlanufacturing Association.
A public hearing was held -in WCashington, D.C. on December
4, 1933 and reconvened on December 21, 1933. The public hearings
were conducted in accordance with the pr~ovisions of Title I of the
National Industrial Recovery Act and all interested persons were
given full opportunity to be heard.

The Steam Engine Manufacturing Subdivision, being truly repre-
sentative of the manufacturers of the products defined in Article
II of the Supplemental Code, has elected to formulate and submit
a Supplemental Code of Fair Competition as provided in the second
paragraph of Article I in the Code of Fair Competition for the
Machinery and Allied Products Industry, approved by you on the
seventeenth day~ of March, 1934.
The Subdivision includes the design, manufacture, contracting for
or subletting t~he manufacturing for the sale of reciprocating steam
engines, including spare, repair and replacement parts thereof fori
land andl marine use, and includes all those so engaged; providedl that
the Subdivison shall not include locomotive and automotive types
or spare, repair and replacement parts thereof.
Statistical material relative to production and employment for this
SCubdivison has been submitted in the code application by the Steami
Engine Manufacturers' Association. This Association claims to
represent 95 per cent of the entire Subdivision measured by dollar
volume of business.
Annual sales, as reported by the Association, reached A. peak in
1930. Sales in 1932 had dropped to less than one-half thle 1930 level,
or from $3,450,000 in 1930 to $1,37~0,000 in 1932. Invested capital
and production capacity have remained constant.
Estimates of approximate employment for the entire Subdivision
submitted by the Trade Association indicate that employment de-
clined fromt 1,700 in 1930 to 895 in 1933, or 47.4 per cent. The 1933
employment is 45.8 per cent belowr the 1929 level of 1,650 wage
No figures are available on t~he full-time hours per week for the
entire Subdivision. According to data compiled from National
Recovery Administration questionnaires from a sample of the Sub-
division, the average working time in June, 1929, was 10 to 11 hours
per day; in June, 1933, 9 to 10 hours per day; and in October, 1933,
8 to 9 hours per dlay.
Average hours per week were reported t~o be 571.8 in June 1929;
39.1 in June, 1933; and 38.9 in October, 1933. In October, 1933,
the average hours were 32.71 per cent less than the June, 1929 average.

The effect of the 40-houir provision with production at more normal
lev-els many be estimated on a basis of total man-houlrs per week in
1931 dlivi~lcle by the number of hours prescribed by the code. Since
19290 mafn-hours per week decrlined steadily from 95,370 to a minimum
of 35,0)34 in 1933 (first sixi monthss, or approximately 63.2 per ceht.
Since then mlan-hourns increasedc to 413,801, representing a rise of 25
per cent.
If it is assjumed that thle 48,465S averagee inan-hours per week for
1931, are repr~esentative of the volume of production for that year
and a reasoinnble mea~;sure of man-houir requirements in a more nor-
m~al period~, thle adoption of the 40U-hour week would require a force
of applroximatel~y 1.B00 employees, or 97 per cent of the 1929 working
How~ever, owing tol the imposn~sibility of all emloylaees of the Sub-
tlivisionl w\orkingr the mlaximumr 40 hours, the average workr week
will be shorter, say 36 assumed effective hours andl employment cor-
Irespondingly~ greater, viz: 1,350l workers will be required to produce
the 1931 volume.
The mulinimum wagr e provisions pr~oposedl for the Subdivision which
ar~e oper~ating under the Clode of the IMachinery and Allied Products
I~ndustryn are based on a flat minimum hourly rate of 32 cents per
hour for thle South~ and the follow~ingr city pouplat.ion differentials

40 cents p~er' hour; Over 10,000 to 50,000 pouplation, 38 cents per
hlour; 10,0J00 p~opuIlation anid under, ;36 cents per' hour.
II1n addition to thle muinimuml wage ra~tes shown above, the Code
pr-ovidles that wTomien engaged in substantially the same work as men
shanll received the caiie rate of pa~y as such menc employees; that the
minimlu m wa~ge f'or womlen employees engaged in plant operation
shanll b~e not less thanl 87.5 per cent of th~e proper rate for the localityv
in whichl employed as specified; and that the minimum in the Soutlh
shalli be not less th~an 29 cents per h~our.
Distributions of the number of factory workters receiving classified
ratesj in thl~e spec~ified areas ar~e not availab~le. Consequently, it is
only pos~sible to estimate t~he aippr~oximate number of factory workers
-ho, will reiceiv-e thle becneit, of the pr;oposed~ mlinim~um hourly rates,
rgrdjulle~ss of location, on thle basis of thle number of factory workers
receiving less thain the designated hlourly rates as of June 15, 1938.

Esti~,nlrted amr~r~lc, of fanctol ry worker; IcrecirinUl less thanll desi~Ecated hourly

SDistribution of factory
workers receiving lees
than the afalmum,
regardless of location
P'clroposed mlnmsmm hlourly rates
Approxi- Approxi-
mate per- make num-
osat bar

410 cents (other U'.S.) ~.~~..-.~. ..................... ........._..._, ............. 11. 0 10
38 Dents (other U.S.)....._-~..._..............~...........~..~~~...~~_..~.~........... 10.Ig
36 cents (other U.S.)..................~........... .......................~_~.~... Bs 3
82 cents (South)~... .~~.~.....~............................... ... ..._......_...... 3.3 20

Based on the distribution as of June 15, 1933 and on the specified
percentage of the number of factory workers receiving less than the
designated rates shown in the above table, the adoption of the pro-
posed minimum rates will probably cause an increase in factory pay-
rolls. 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 adjust-
ment in the brackets below the 40-cent minimum and no change in
man-hour requirements.

Article I states the purpose of the Supplemental Clode.
Article II accurately defines specific terms applicable to the. Sub-
division as used in this Supplemental C~ode.
Article III provides for the adoption of the employment provisions
of the National Industrial Recovery Code of the Machiner~y and
Allied Products Industry, as approved by you, and as from time to
time amended.
Article IV provides for the adoption of Articles II, VI, VIII and
IX of the National Industrial Recovery Code of the Mlachinery and
Allied Products Industry, in accordance with the conditions of this
Article governing their a~dopt~ion.
Article V provides for the establishment of a. Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and/'or estimating.
Article VII provides that no products of the Subdivision shall be
sold or exchanged below~ a reasonable cost when the Code Authority
determines that an emergency exists.
Article VIII provides for methods of setting uip, revising and filing
price lists and discount sheets and terms of sale and p~ayment.
Article IX sets forth trade practices for the Slbd~ivisionl.
Article Xi states that no provisions of this Supplemental Code
relating: to pricing and marketing shall apply to export sales as
defined by the term "L export "' in this Article.
Article XI provides that this Supplemental Code and all the pro-
visions thereof are expressly made subject to the right of t~he Presi-
dent, in accordance with Subsection (b) of Sction 10 of the Act,
from time to time to cancel or modify any order, approval, license,
rule or regulation issued under said Act. Provision is also made
that modifications may be submitted by the' Code Author~ity~ to the
Administrator for approval.
Article XII. No provision of this Supplemen~tal Code shall be
so applied as to permit monopolies, or monopolistic practices, or to
eliminate, oppress. or discriminate against small enterprises.
Article XIII states the effective date of this Supplemnental Code.

The Assistant Deput~y Administrator in his final report to me on
said Supplemental Ciode having found as herein set forth and on
the basis of all the proceedings in this matter:

I findi thant:
(a) Said Supp~lemential Code is well designed to promote the poli-
circs and~ purp~oses of Title I of t'he National Industrial Recovery
Act! includijng removal of obstrulctionsq to the free flow of interstarte
and foreign commellrce which tend to diminish t~he amount thereof
and will provide for thle general we~lfalre by promoting the org~aniza-
tionl of indlustryr for the p~urplose of cooperative action among the
tl;rae groulps, b~y inlducing andl maintaining united action of labor
awil muanagemennt undicer alequate govecrnmecntal sanctions and super
visionl by elimiinating unfair comnpettitive practices, by promoting
thec fulllest p~ossible utilization of the present productive capacity of
inusli.tries, by. av-ojidin undue restr'ictionl of production (except as
mnay be templloracrily required), by increasing: the consumption of in-
dustrial andl agricultural products thlroughl increasing pu~rchascing*
powerl, by~ redtuc~ing andt relieving unemp~loyment by improving
standardsl of labor, and by othierwise rehabilitating industry.
(b) Said Sub~division normally employs not more than 5i0,000
emplloyees; and is not classified by me as a major industry.
(c) Thle Supplemiiental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limiitation Siubsectioni (a) of Section 3, Subsection (a) of
SeC~ttion 7, andi Subsection (b) of Section 10 thereof ; and that the
apphenicnt.t a~ssonation is an indlustr~ial association truly representative
of thle afore~suid Subdivision; and that said association imposes no
inequlitalec restrictions on admission to mnember~ship therein.
(d1) Th'le Sup~plemnental Code is not designed to and will not permit
micnopo":lies or monopoclistice practices.
(e) T'he Supplemnental Code is not designedl to anid will not elim-
ina:to or oppress small enterprises and will not operate to discrim-
ina~te against, themi.
(f) Those engaged il mother steps of the economic process have not
been; depr~ived of the right to b~e heard prior to approval o~f said
Sup~plemiental Co0de.
F~or these reasons, therefore, I hlave approved this Supplemental
C'ode, pr1ovidedl that certainly provisions relatingi to price publication,
tutrae p~racticers, and Article VIII, Section (c) are stayed, as stated
III Lhc 10OP( G.
IUHua 8. JoHxaow,
J'NE 11, 1934.




To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a2 Supple-
mental Code of Fair Competition for the Steam Engine Manu-
facturing Subdivision of the Ma~chiner nAlidPousIn
dustry, and together with the Code oFair Competition for the
Machinery and Allied Products Industry to wFhich it is a Supple-
ment shall be the standard of fair competition for this Subdivision,
and shall be binding on each employer therein.


"LApplicant means the Steam Engine Manufacturers Associa-
tion, a trade organization, all members of which are engaged in the
manufacture for sale of the products of the Stea~m Engine Manu-
facturing Subdivision of the Machinery and Alliedi Products In-
dustry, which organization is truly representative of this Subdivli-
"C Industry means the Mlachinery and Allied Products Industry,
a~s defined in its Code of Fair Competition as approved by the
President, Myarch 17, 1934 and as such definition may from time to
time be amended.
"C Subdivision ") mean-s the Steam Engine M~anufacturing Subdivi-
sion of the Machinery and Allied Products; Industry as defined and
set forth in Paragrap~h (33) of Article II of the Code of Fair
Competition for the MPachinery and Allied Products Indcustrly asr
follows :
Steam Engine M~anufact~uring Subdivision means the design,
manufacture, contracting for or sub letting the manufacturing for the
sale of reciprocating steam engines including spare, repair and re-
placement parts thereof ~for land and marine use, and includes all
those so engaged; provided that the Subdivision shall not include
locomotive and automotive types or spare, repair and replacement
parts thereof."'
"L Code means the Code of Fair Competition for the Machinery
a~nd Alied 3Products Industry, as approved by the President, and as
from time to time amended.
"Perso9n "' means a natural 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 this Subdivision of the
Industry, either on his own behalf or as an employer ofE laor

"L Employee means any one who is employed in the Subdivision
byany such employer.
bs" The Act means Title I of the National Industrial Recovery
The President means the President of the U~nited States.
The Administ~rator means the Administrator for Industrial
Basic Code Authority "~ means the Code Authority for the
Machinery a~nd Allied Prodcucts Industry as constituted byY the Code.
Code Authority' means the Code Authority constituted for
this Sulbdivision as provided by thie Code and by this Supplemental~
Group, Code Authority means the Code Authority for any
group or classification of products within this Subdivision, constz-
tuted under the authority of Article V of this Supplemental Code.
Publish means to make available to the public.
Principles means all essential characteristics.


The following Articles of t~he Code, viz: Article III, "L Working
Hours "; Article IV, Wrages "; and Article V, General Labor
Provisions ", are herebyI made a part of this Supplement~al Code,
with the same effect as if they were written into this Supplemental


The followin r Articles of the Code, viz: Article II, Definitions ",
Article VI, ~dministrat~ion ", to the extent that they shall be
applicable to this Supplemental Code as such or as it may here-
after be administered as an autonomous Code; Article VIII, Modi-
fication,s; andi Termination "; and Article IX, WPithdrawal are
hereby made a part of this Supp~lemental Code with the same effect
as if they were written into this Supplemental Code.

To admninisterl and supervise, and facilitate the performance of
the provisions of the Supplemental Code, there is hereby established
a "L Code Ault.hority."
(a) The Code Authority for this Subdivision shall consist of
(1) The Execut~ive Commnittee of the Steam Engine Manufac-
turers Association, consisting of not Jess than four and not more
than seven mem~bers.
(2) One additional member to be elected in any fair manner,
with thie approval of t~he Admninistrator, by employers in this Sub-
division not. members of the Applicant, who are; cooperating in this
Supplemental Code, as described in Section (e) hereof, if so desired,
by such non-memibers.
(3) The Admninistrator miay, at his discretion appoint one addi-
tional member (without. vote and without expense to the Sub-
d. iio. .

(-b) Each trade or industrial association directly or indirectly
,pa~rticipating in the selection or activities of the Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submit to the Administrator true copies of its articles of atssocia-
tion, by-laws, regulations, anld any amendments when made thlereto,
tfogether with such other information as to membership, organiza-
tion, and activities as the Administrator may deem necessary to
pfectuate the purposes of the Act.
(c). In order that the Code Auth~ority shall at all times be truly
representative of the Subdivision andi in; other resp~ects comply withl
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if hie shall find that th~e
Code, Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
acppropriate modification in the mleth~od of selection of the Code Au-
thbority, or any Group-Code Authority.
The Code Authority may adopt rules and regulations for its prro-
cedure and employ such personnel as it may d~eem necssary.,,
(d) Any employer in this Subdivisio n salb lgbefrmm
bership in Steami Engine 111anufacturers Association.
(e) Anly employer in this Subdivision shall be entitled to vote,
subject to the provisions of Section (a) hereof, at the election of,
and share in the benefits of the activities of the Code A~uthority and
may participate in any endeavors of the Code Authorityr, in the p~rep-
aration of any revisions of, or' additions or suppllnemens to, thiis Sup,-
piemental Code, by playing his prope' pr'o r-ta. shanre of thle r~eason-
a~ble cost of creating and adm~inisterinlg it, as determined by the
Code Authority, such vote of emlnroyers in this Surbdivision to be
determined subject to t~he. provisions of Secztion (a) hiereof, -by a
vote of employers who are at that time engaged in mianufacturing
such product, and are at that timne cooperating in this Code, as
above described in this Section (e) of this A-rticle V, cast concur.-
rently in each of t~he t~wo followuinga methlods (1') by one vote of
each employer. (2) By vote of employers weighted on the ba~si
o~f one vo~t.e for each $25,000 of sales bookedr of such product. of said
employers who are at that time engaged in ma~nufacturinig such
products, made in t.he preceding five enlendazr years, ats r~epor~ted to
the Code Authority of this Subdivision. Each emplloyer shall be
entitled to at least one such vote.
Except as otherwise proviided in this Codle, any nation taken at any
meeting of the employers shall be by a mlajority v-ote, east and comn--
puted in each of the two methods: here~inabov-e provided.
(f) Employers in this Subdivision having a comnmoni interest and
common problems, may be groupedl by Code Authority for admrinis-
trative purposes into various Group Subdivisions or product classi-
IIn each Group Subdivision, or product classification, there mlay
be a Grroup-Code Authority approved, or appoi ntedl, by Cocde

(g) A~If frmal complaint is made to Code Authlority that provisions
oftis Supplemental Code have beenl violated by any emplover, the
Code Authority or proper Group-Code Authority, may cause sulch
investigation or audit to be malde, to the extent permitted by the Act,

as may be deemed necessary. If such investigation is made by Group-
Code Authority, it shall report the results of such investigation or
audit to Code Authority for action.
Unless 'Basic Code Authority shall take jurisdiction, the Code
AuthorityV shall. have~ thr riht to investigate to the extent permitted
by the Act and analyze any transaction cming under the scope of
this Supplemental Code on which any unfair competition is alleged,
to show evidence of any violation of this Supplemental Code, to
report any such alleged violation to the proper authorities for action.

The Code Authority shall cause to be formulated an accounting
system and methods of cost finding and/or estimating capable of use
by all employers of the Subdivision. After such system and methods
have been formlulated, full details concerning them shall be made
available to all employers. Thereafter all employers shall determine
and/or estimate costs in accordance with~ the principles of such

(a) Wthen the Code Aulthority has reason to believe that an emer-
gency exists as to any product or products of the Subdivision, and
that the cause thereof is destructive price-cutting such as to render
ineffective or seriously endanger the purposes or the maintenance of
the provision of this Supplemental C~ode, the Code Authority may
cause an invlestigation of costs and pricing t.o be made by an impartial
agency in order to determiine the existence of the emergency and the
Code Authority may cause to be determined the lowest reasonable
cost of the product or products of this LSubdivision, such determina-
tion to be subject to such notice and hearing as the Administrator
mayv require. Tle. Administrator may approve, disapprove, or modify
the determination. Thereafter, during the period of emergency, no
employer of the Subdivision shall sell or offer to sell any products of
the Subdivision for wFhich the lowest reasonable cost has been deter-
mined at. suchi prices or upon suich terms or conditions of sale that the
buyer w~ill pay less there~for than thle lowest reasonable cost of such
Whlen it appears that conditions have changed, the Code Authority,
upon its ownl initiative or upon the request of any interested party,
shall cause the determination to be reviewed.


(a) If and when the Code Authority of this Subdivision deter-
miness that in any branch or group of t~he Subdivision it has been
the generally recognized practice to sell a specified product on the
basis of not price lists, or price lists with discount sheets, and fixed
terms of sale and paymentn, each emlployer shall, within ten (0
days after notice of such determination, file with the Code Authr
ity a net prier list, or a price list and dliscount sheet, as the case may
be, individually prepared by him, showring his current prices, .or
prices and ~discounts, andl terms of sale and payment, for such speci-

Ae~d product, and the Code Authority shall immediately publish and
send copies thereof to all known employers who are .coopera-ting
in this Supplemental Code as described in Section (e) of 'Article
YV hereof.
Revised price lists and/'or discount sheets and/'or terms of sale
and payment for such product may be filed from time to tirae
thereafter with the Code AuthorityB by any employer, but such re-
:vised price lists and/ior discount sheets and/or terms of sale and
paymxrent shall be filed with the Code Aulthority ten (10) days in
advance of the effective date. Copies of such revised price lists
aind/or discount sheets and/or terms of sale and payment, for such
product, with notice of the effective date specified, shall be imme-
cliately published and sent to all known emplioyers who are cooperat-
ing in this Supplemental Code as described mn Section (e) of Article
V hereof, any of whom may file, if he so desires, to become effee-
tive upon the date whlen the revised price list and/or discount sheet
and/oar terms ~of sale and payment first filed shall go into effect,
revisions of his price lists ignd/or discount sheets and/or terms of
sail and payment establishing prices or prices and discounts not
lower or terms of sale and p~aymnent not more favorable than those
established in t~he revised price lists andt/or discount sheets and/or
terms of sale and payment first filled. Not~hingr in t~he folPregoingh
shall constitute a, limitation upon the right of any employer to file
revised lists firing his own prices, discounts and term~s of sale and
psaymgnent, which prices and discounts may be either more or less
favorable than those contained in any other price list, to be effective
as provided in the first sentence of this paragraph.
(b) If and when the Code Authority shall determine that in any
branch or group of the Subdivision not now selling its product on th~e
basis of price lists, withl or without discount sheets, with fixed terms
of sale anld payment, the distribution or ma~rketingr condition inI said
branch or group are the same as, or similar to, the distribution or
marketing conditions in a branch or group of the Subdivision where
the use of price lists, with or' without discount sheets? and fixed terms
of sale and payment, is well recognized, and that a system of selling
on net price lists or price lists and discount sheets with fixfed terms of
sale and payment for such product should be put into effect in such
branch or group, then each employer of such branch or group shall
within ten (10) days after notice of such determination, file with
the Code Authority net price lists or price lists and discount sheets,
containing fixed terms of sale and payment, showing his current
prices and discounts and terms of sale and payment, and such~ price
lists anid/or discount sheets and/or terms of sale and payment may be
thereafter revised in the manner hereinabove provided; provided,
however, that the Code AQuthorit~y shall make no determination to
place any product of thle Subdivision (not now on a price list basis)
on a price list basis, as provided in this paragraph (b) of Article
VIII, unless t~he employers who areo at that time engaged in manu-
facturing such product and are at that time cooperating in this Code
have given their affimative consent to such determination. The
eligibility requirements, method and effect; of such voting shall be
the same as provided in Section (e) of Article V.
]Each employer shall prepare and shall furnish the Code Authority
for~ distribution with such number of copies of his price lists and/or

discount sheets and terms of sale and payment as Code Authority
may prescribe.
(c) No employer shall sell directly or indirectly by any means
whatsoever any product of the Subdivision covered by provisions of
this Article VIII at a price or at discounts, or on terms of sale and
payment, different fromt those provided in his own current net price
lists, or price lists and discount sheets, provided that nothing in the
above shall prevent an employer from adding to hris own price and/or
price list and discount sheets by increasing his job price to include
unusual selling, engineering, servicinlg? financing, financial risks, or
others similar sp~enal charges (except as provided in Article VII
above), provided, however, that in thle event of an em~ployer quoting
a higher price than the price published in his own price list and/or
price list and discount sheets to take care of unusual selling engineer-
mng, servicing, financing, financial risks, or other similar special
charges, he shall not subsequently quote a lower price on said pro-
spective sale than that price first quoted, except in accordance with
revised price lists duly filed or unless he simultaneously eliminates
part or all of the unusual engineering, servicing, financing, financial
risks or other similar special charges, for which a corresponding
reduction onlyI may be made.
(d) No emnployer shall sell t.o, or through any broker, jobber,
commission account or sales agency (this is known in the trade as
" pooled buying ") who or which is in fact an agent for an organiza-
tion of industrial consumers, with the result that any industrial
consumer secures a discount, allowance or price other than the dis-
count, allowance or price provided for in the employer's own cur-
rent net price lists or price lists with discount sheets.
No employer shall evade any provision of this Code by selling
to or through any dealer, jobber, distributor or other selling agency
which shall fail to agree to resell in accordance with the provisions
of Article VII, VIII and IX of this Supplemental Code.
(e) Wther~ever by the provisions of this Article VIII an em-
ployer is or may be required to or permitted to file terms of sale
and payment, such terms shall mean usual or standard terms, and
to cover any special and..*or unusual terms definite formulae for
dletermnining such special and -or unusual terms shall be filed.
(f) If and when Code Authority shall determine that it is un-
desiabl toconinu th fiingof net price lists and/'or price lists
with discount sheets and/'or xdtrsoslendpy ntn
any product in respect of which such filing has hertofore been re-
quired, such filing shall cease and the provisions of this Article
shall not apply to such product unless and until Code Authority
shall again determine that such filing be made.

Each of the following acts and practices is deemed to be inimical
to the best interests of this Subdivision andl of the public, and
each is, therefore, hereby declared t.o be, and to constitute, an unfair
miethod of competition, viz:
1. The secret offering or making, to any customer, agent, fiduciary
or representative of customer, of any payment or allowance of a
rebate, refund, commission, credit, credit subsidy, unearned dis-

i~ount or excess allowance, whether in the form of money or other-
wise, or any special service or privilege, for the purpose of influenc-
ing a sale. No employer of the Subdivision shall give, permit to
be given, or offer to give, anything of value for the purpose of
influencing or rewarding the action of any employee, agent, or rep-
resentative of another in relation to t'he business of the employer
of such employee or the principal of such agent wFithout the knowl-
edge of such employer or principal, provided that no provision of
this Code shall be construed to prohibit free and general distribu-
tion of a~rticles commonly usedr for advertisEing, except so far as such
articles are actually used for commercial bribery as hereinab~ove
defi ned.
$ 2. Any discrimination between purchasers, byv the sale of any ar-
ticle having a published price, at any price other thanz the seller's
published price, by means of direct or indirect price concessions, or
by me~ans otf~any privilege not extended to purchasers generally.

uct, with intent to deceive bjr mislead.
4. The publishing or circularizing of threat of any suit for in-
firingement of patent or trade mark, or of any other legal proceed-
ings, not in good faith, which would tend to harass a competitor or
intimidate his customer.
5. The taking in trIade or accepting in trade any secondhand or
old equipment in part payment for new, provided, however, that
this provision shall not be construed to prohibit in any way the
return within six months of the date of shipment, to the Vendor
and the allowance of any fair adjustment thereon by the Vendor
of nyprduct which shall not meet the purposes for w~hich~ it was
sold.o Any employer may, however, assist in findinga a bona fide
buyer for said equipment, but shall in no case takie any financial
interest in it.
6. So long as the maker of any product. of this Subdivision bear-
ing the maker's nmenl or trade mark, which has required special
designing, research or development expense (or his successor in
business) continues to make and supply such spare, repair and re-
n~placment. partsn t~herefor, suppnlyin repair parts for such product
of this Subdivision unless (a) the name of the mlaker of such copied
non-genuine repair parts shall be plainly marked on eachi part (or
if this is impracticable on the package or tag)s htteutmt
user is clearly informed by marking onl such p otarts places ntags~
and in catalogues, price lists, quoted prices, advertisements or ad-
vertising literature o~f the manufacturers of such copied non-genuine
parts that said p~art~s were not made by thle original makler of the
products of the employer of this Subdivision.
7. The furnishing to any purchaser, and/'or his agent, directly or
indirectly of detailed shop drawings of the products of this Subdi-
vision without filing a statement of such proposed tr~ansaction with
the Code Authority which may approve or with the approval of the
Administrator disapprove the transaction within ten (10) days by
written notice to the employer.
8. Disseminating false or misleading information relative to com-
petitor's products, selling prices, reputation, credit or financial stand-
ing, ability to perform work, or labor conditions.


14 3 1262 08583 0494

9. Induicinga or attempting to' induce' a breach or :abandormnent .of
contract coveringr the purchase or sale of the products of this ti'b-
division; provided, however, that nothing in this Section shall be
construedl to prohibit the attempt on the part of the owner of or
licensee under any patent to induce a purchaser or future purchaser
of any product whiich shall infringe said patent, to-- avoid such
pu rch ase.
10. It shall be anl unfair trade practice for any employer to engage
in destructive price cutting.

The provisions of t.hlis Sulpplement~al Code concerning. pricmng and
marketing (Articles VII. VIII and IX) shall not apply to direct
export sales of any product. A similar exemption may be grainted~
by the C'ode Aulthority of this Suibdivision as to sales of any product
destined ultimately for export. Unless otherwise determined by.the
Code AuthorityI the term "L export "' shall include all shipments to all
places w-ithlout t~he several states of the United States and the Dis-
trict of Columbia; provlided, however, that no shipment to any terri-
tory or possession of the United States shall be considered an export
when any emnployer is engSaged in the industry in such territory or

(a) As prov'ided by Section 10 (b) of the Act, the President may
from t~ime to time cancel or mlodify any order, approval, license,
rule or regulation issued under Title I of-the Act.
(b) S~tudy of the trade practices of this. Su~bdivision will be con-
tinued by Gode Authority, with the~ intention of submitting from
timne to timne, after its effective date, amendments or additions to, or
revisions of, or supplements to, this Supplemental Code.
Anly such amendments, additions, revisions, or supplements, pro-
posedl by Code Authority. and approved by a 75%r vote of the em-
ploylers shall be in full force andl effect upon approval by the Presi-
dent. The eligibility reqjuirem~ents, method, and effect of such voting
shall be the same as provided in Section (e) of Article V.
The Supplemental Code presented by Applicant is not designed
to promote monopoly, and shall not be so construed oi* applied as to
opp'ress or eliminate small enterprises or discriminate against them,
and is designed to effectuate the policy of the Act; '
This Sup~plemental Code shall become effective and biilding on all
persons engagedl in this Subdivision on the eleventh day after its
approval by the Presid~ent.
Approved Codc~e Nor-. :3-ll-Supplement No. 16.
Registry No. 1312-03,