WE DO OUR PART
UNIV. OF- FL LIIA.
Price 5 center
Code No. 347--Supplelihent No. 40
Registry No. 1312---01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPaETTITON
': "DIESEL ENGINE
(A Division of the Mlachinery and Allied Products Industry)
AS APPROVED ON AUGUST 1, 1934
GOVERNMENT PRINTING OFFICE
For nsae br the Superintendent of Documents, Washington, D.C. -. .
Thla publkcation is for sale by the Superintendent of Documents, Government
Printing Offce, Washington, D.O., and by district of~ces of the Burecan of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Buliding;.
Birmingham, Ala. : 257 Federal Building.
Boston, Mlass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
C'harleston, B.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North WYells 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.
Indianapolls,. Ind.: Chamber of Commerce Ballding.
Jacksonville, F'la.: Chamber of Commerce Building.
Kansas City, M~o.: 1028 Baltimo~re Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Loneville, Ky3.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Banfding.
Mlinneapolis, Minn.: 213 Federal Buildingt.
New Orleans, La.: Room 225-A, Customhouse.
New York. N.Y.: 734 Custombouse.
N~orfolkr, 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, MIo.: 506 Olive Street.
Ban Francisco, Calif.: 310 Custo~mhouse.
Seattle, W~ash.: 800 Federal Offlee Building.
Approved Code No. 347--Supplement No. 40
SUPPLEMENTARY CODE OF FAIR COMPETITION
DIESEL ENGINE MANUFACTURING INDUSTReY
As Approved on August 1, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THll
DIESEL ENGINE I$1ANUFACT~URINGC INDUSTRY
A DIVISION OF THE MIACHIINERY AND ALLIED PRODUCTrS INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indust~rial
Recovery Act, approved June 16, 1933 for approval of a Supple-
mental Code of Fair Competition for the Diesel Engine Mlanufac-
tuaring Subdvisioben ofl Mahier and Allied Products Industry, and
heaing haingbee duy hldthereon and the annexed report on
said S~upplemental Codlecontaining findings with respect thereto,
having been made and directed to the President:
NOWI THEREFORE, on behalf of the President of the ULnited
States, f, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me byEcuieOdrofhePsi
den, icluingExeutie OderNo.6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed 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 following conditions:
(1) That the provisions of Art~icle VIII, Section (a)Ir insofar as
they prescribe a w~ait.ing period between the filing wit the Code
Aut.hority and the effective late of revised price lists and/or dis-
count sheets and/or terms of sale and payment; and insofar as they
empower the Code Authority to shorten the waiting period be and
and they hereby are stayed pending my further order
(2) That the provisions of Article VIII, Sections c)and (f) be
and they hereby are stayed until I by my further order otherwise
(3) That the provisions of Article VIII, Section (g) be and they
he~rebyv are sitayedr pndingr the submission of satisfactory evidence
covering the distribution of the products of the Subdivision to the
Adlmi nistrator ;
(4) That the applicant shall amecnd its constitution and By-Laws
to the satisfaction of thle Admlinistrator within sixty (60) days after
the effective date of this Code.
Hoan S. JoINSON,
Admninisttrar for Inzdustr~ial Recovery.
Approval recommended :
B.uRrowv W'. ManaRR:,
Divisionl. AdmC1 in ist rator.
Au g ust 1, 194..
REPORT TO THE PRESIDENT
Thle Wh~ite Hou~se.
SmR: This is a report on the Supplemental Code of Fair Competi-
tion for the Diesel Engine M~anufacturing Subdivision of Mfachinery
and~ Allied Producrtsi Industr ai Pubhlic Heanring on which was held
in Washington, D. C., on November 22, 1933, and reconvened De-
cember 21, 1933. The Hearing wTas conducted in full accordance with
the provisions of Title I of.the National Industrial Recovery Act.
The Diesel Engine: Manufacturing Subdivision, being truly repre-
sentative of the manufacturers of the products defined in Article II
of the Supplemnental Code, has elected to for~mulate and submit a
Supplemental Code of Fair Competition as provided in Article I of
the Code of Fair Competitioni for the Miachinery andl Allied Products
Industry, approved byI you on t.he? seventeenth day of Manrch 1934.
The Diesel Engine Mannufacturing Surbdivision means the mianu-
facture for sale of Diesel engines aral/or parts thereof, except Diesel
engines used (1) in, and for the pro~pulsion of, aeroplanes, auto-
mobiles, trucks or tractors, and (2) in, and for the operation of,
portable air compressors, andl includes all those engaged in such
manufacture for sale.
The manufacture of D~iesel Enginies is rapidly expanding into
various new field applications, although the total volume production
of the Subdivision has been very seriously curtailed from year to
yrear since 19PC9, export volume decliniing miuch more, proportionately,
than domestic production. WSith any general revival in capital goods
production the volume of this Subdivision will expand rapidly.
Volume declined from $26,800,000 in 1929 to $13,415,000 in 1931, or
practicaally 50%r. The Sulbdivision estimates that there was a further
decline in 1932 to about $8,260,000. Exports in 1929 represented
almost 14%c of total production, and in 1932 only r.5%4.
Official statistics on employment in the Diesel engine Subdivision
are not available. In addition to the 9,588 wage earners in 1929,
the Subdivision reported about 2,400 executives, supervisory, admnin-
istrative, and other employees. WIage earners in February 1933,
were estimated at 3,690, rising to 4,420 by July 1933.
The Research and Planning Division report it is difficult to deter-
mine how much re-employmlent will be effected in this Subdivision
as a result of the reduction in hours. This Division estimates hours
would have to be reduced to an average of less than 19 per week$ in
order to re-emlploy the 1929 labor force at the July 1933 level of
Average weekly wages paid to factory employees amounted to
$32.53 in 1929 for all wage earners and to $23.69 for unskilled work-
er~s. By Februar~y 1933, these averages h~ad declined to $18.91 and
$;13.23 respectively, but in July, 1933 they increased to $21.99 and
$;10.55---this increase undloubteilyv being due to the longer working
w~eek prevailing in July than in F~ebruary.
T'he wage provisions for the Subdivision, which is operating
under the Code of thle M~achinery and Allied Products Industry,
provide thiat employees engageed in plant operations shall be paid as
follows: (1) in cities of more than 50,000 population and their im-
miediate vicinity, 40 cents per hour; (2) in cities of more than 10,000
but niot more than 50,000 po~pulattion and their immediate vicinity,
which cities are not in th~e immnediate vicinity of a city of more than
50,000 population, 38 cents per hour; (3) in cities of 10,000 popula-
tion or less and their immediate vicinity, which cities are not in the
immledliate vicinity of a city of miore than 10,U000 population 36
cents per hour, except that employees engaged in plant operations
in all localities in the states of Virgrinia, Nort~h Carolina, South
Carolina, Georgia, Florida, Tennessee, Ailabamna, MIississippi, Arkan-
sas, Louisiann, Texas, and Oklahoma, shall be paid not less than 32
cents per hour.
WChen females do substantially the same work as males or replace
males, they shall receive the same pay. However, no female em-
ployee shall be paid less than 871/2%~ of the proper rate for the
locality in which employed.
Office boys and girls and apprentices shall be. paid not less than
80%b of the minimum wage.
~Employees other than those engaged in plant operations shall
receive not less than $15.00 per week.
Th~is Supplemental Code provides that no person under sixteen
years of age shall be employed in this Subdivision.
R SUMAE OF SUPPLEMENTAL CODE
Article I states the purpose of the Supplemental Code.
Article. II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employmnt pro-
visions of the Code of Fair Competition for the M~achnry and
Allied Products Industry as approved by you on the seventeenth day
of March, 19341 and as from time to time amended.
Article IV provides for the adoption of Articles II, VI, VIII
and IX of the Code of Fair Competition for the Machinery and
Allied Products Industry in accordance with the conditions of this
Article governing their adoption.
Article V provides for the establishment of the 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 shall be sold or exchanged
below a reasonable cost when the Code Authority determines that an
~Article VIII provides for methods of etigup, revising, and
fiing price lists and discount sheets and terms o sale and payment.
Article IX sets forth trade practices for the Subdivision.
Article X establishes that no provision of this Supplemental Code
relating to pricing and marketing shall apply to export trade.
Article XI: This Supplemental Code and all the provisions thereof
are expressly made subject to the right of the President in accord-
ance with subsection (b) of Sect~ion 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 miodifications
may be submitted by the Code Authority.
Article XII provides means for withdrawal of this Subdivision
from the Basic C~ode and its continuance as an autonomous Code.
Article XIII establishes that no provision of this Supplemental
Code shall be so applied as to permit monopolies or monopolistic
practices or to elinunate, oppress, or discriminate against small
Article XIV states t~he effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to me on
said Supplemental 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
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce `ihich tend to diminish the amount thereof
and will provide for the general w-elfare by promoting the orgraniza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of in-
dustries, 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 reducringr and re~lievingr unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000
employees; 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, Subeto (a) o
Section 7, and Subsection (b) of Section 10 thereof ; and that the
applicant association is an industrial association truly representa-
tive of the aforesaid Subdivision; and that said association imposes
no inequitable restrictions on admission t~o membership therein.
(d) Trhe Supplemental Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate or o press small enterprises and will not operate to discriminate
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication
in Article VIII, Section (a), trading in of used equipment Article
VIII, .Section (c), and pooled buying Article VI'II, Section (f) are
stayed as stated in thre Order.
HIIoI S. JoINSON,
Avoust 1, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE DIESEL ENGINE MANUFACTURING INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
ARTICLE I PIURPOSES
To effectuate the policy of Tit~le I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the Diesel Engine M~anufactur-
ing Subdivision of the Mfachineryv and Allied Products Industry, and
taken together with the Code of Fair Competition of~ Machinery and
Allied Products Industryr shall be t~he standard of fair competition
for this Subdivision, and shall be binding on each emnployrer therein.
"Appliennt "' means the Diesel Engine Mianufacturers' Association,
a. t~radeP orrg~nzt~ion, all members of which are engraged in the manu-
facture for sale of the products of the Diesel Engine Mlanufacturing
Subdivision of the MachinerjT and Allied Products Industry.'
"L Industry "' means the Mlachinery and Allied Products Industry,
as defined in its Code of Fair Clompetitionl as approved by the Presi-
dent and as such definition may from time to time be amended.
"L Subdlivision means this Diesel Engine M~anufacturiner Subdi-
vision of the M~achinery and Allied Products Industry as defined Rnd
set forth in Paragraph 10 of Article II of the Code of Fair Compe-
tition of the Mlachinery and Allied Products Industry as follows:
Die~sel Engine M~anufactulrilng Subdizvisi'on means the mlanufac-
ture for sale of Diesel engines and/ior parts thereof, except Diesel
engines uised (1) in, and for the propulsion of, aeroplanes, automo-
biles, trucks or tractors, and (2) in, and for the operation of, portable
air compressors, and includes all those engaged in such manufacture
Diesel Engine is defined to mean any internal combustion
engine utilizing any liquid fuel other than gasoline, injecting such
fuel under pressure into the combustion chamber or chambers of said
"Code means the Code of Fair Competition for the Mlachinery
and Allied Products Inidustry, as approved by the President., and as
from time to time amended.
"L Person means a natural person, a corporation, a partnership,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
Employer mrans any person engaged in the Subdivision, either
as an employer of labor or in his own behalf.
ISee paragraph 2(41) of order approving this Code.
77i616*----1044~-13- 31Y ---2 (7)
The Act means Title 1 of the National Industrial Recovery Act.
The Presidenrt means th~e President of the U~nited States.
The A~dmlinistr~ntor means the Admiinistrator for Industrial
*' Unsic Cod~e A~th~orit~y meanls the Clode Authority for the Ma-
chinieryp and Allied Produ~cts Industry as cornstitulted by the Code.
"Codle Authority means thle Codle Authority constituted for this
Slb~livision as~ pr1ov-ided by the Codle and~ by this Supplemecntal Code.
Group11 Co~~ lleAthlority means thie Code Authority for any
group~1 or' p~rod'uct clals.ificat~io IIn ithin this Sulbcivision, constituted
ulnder the aulthority of Arlticle V of this Supplemnental Code.
"CPublishi means~ to makle available to all in~terested parties.
ARTICLE TT-II-EPLOYMZENrT PiOV'ISIONS
The following A~rticles of the Code, viz: Article III, "' Working
Hours ", Ar~ticle IV, "' W\ages ", andl Article. V, "' General Labor Pro-
visions ", are herebyS mladle a part of thlis Supplemnental Code, with the
samie effect as if they w~ere written into this Supplemental Code.
AnnOILE IV---ADOPTTON OF PROV'ISIONS OF CODE
.The followinrw Articles of t~he Code, viz: Article II, Definitions ",
Article VI2, "Agministration ", to the extent that they shall be ap-
plicable to this Supplemental Code as such or as it may hereafter
be administeredl as an autonomous Code, are her~eby ac'loptedl and
madte a par~t of-this Sup~plemental Code wTith the same effect as if
they were wFritten into this Supplemlental Code.
(a) T1o admninister and supervised, andl to facilitate the performance
of the provis~ionsc of thiis Supplemnental Codle there s~hall be a commiiit-
tee connected with thle Subdivision called the Code Authority."'
IDuring the pserio~d not to exceed sixty dayvs followings the effective
dlate of this Supp~lemental Code the Executive Ciommiittee of Appli-
cant shall constitute a temporary Code Authority. The Administra-
tor miay apploint one additional member of such temporary Code
Auithority without vote andl without expense to th~e SCubdivision.
Thle permanenllt Cod~e Authority shall consist of five members wvho
shall be coratccted w-ithi employers within the Suibdivision. T'he
Admlinistratorr may appoint one adlditiona~l memiber without vote
and without expense to the Suibdivision. The permanent Code Au-
thority sharll be elected at a meeting oif emip overs called by the
temp'orary; Codle Authorityv and hieldl w.ithin thle period1 of sixty dlays
followingr the effective dlate of this SuppD1lemental Code and shall
succeed the temporcIary Code Au~thority. Ten day~s' notice of such
meetingr shall be sent by registered mail to all krnowrn emlployerss
in the Subtlivisio~n and thec notice shall specifically state that voting
at the meetingr ma;y be in person or by prox~y.
The mmibe~rs of the permanent Codle Authority shall be elected
in the follow\ing, manner: (1) One mem~nber by a majority vote of
emlployers present inl person or by proxy, each employer to have one
vote, arid (2) four members by a fifty-one per c~ent vote by employers
present in person or by proxy weighted on the basis of one vote for
'each $100,000 of sales of products of the Subdivision mande in the
calenla~r year 1932 as reportedly to thle Secret~ary of Alpplicant, but
each employer whio reports his sales sha~ll have at least one vote.
No two members of Code Author~ity shall be r~epr!esent~atives of t~he
same emnployer. Any vacancy due t'o death or re~signation or because
a member thereof has ceased to be connectedl wTith the Subdivision
shall be filled at a meeting of emp~loyers called by Code Authority
on at least ten dlays' notice by registered mail sent to all known
employers in the Subdivision and by a vote similar to thle vote by
which the retired member wvas originally elec~ted.
The Code A-uthority mnay adopt rules and regulations for its
procedure and employ such personnel as it may deem necessary.
Any employer in the Subdlivision shall be eligible for membership
in Diesel Engine Mianufacturers' Association. Any employer shall
be entitled to vote at the election, and share in the benefits of the
activities, of t~he Code Authority, and participate in any endeavors
of Applicant or t~he Code Authorityv in the preparation of any revi-
sions of, or additions or supplements to, this Supplemental Code;
but each such employer shall pay his proper pro rata share of the
reasnabe cst f ceatng nd administering this Supplemnental
Code. as determined by teCd uhrto ybcmn
member of Applicant.
In order that the Code Authority or any Grroup Codle Authority
shall at all times be truly representative of the Subdivision and in
other respects comply with the provisions of the Act, the Admin-
istrator m~ay prescribe such hearings as he may deemi proper; andl
thereafter if he shall find that the Clode Authority or any Group
Code Authority is not truly: representative or does not in other re-
spects complly with the provisions of the Act, many require an appro-
priate modification of the Code Authority or of any Grroup Code
(b) Code Authority shall study in cooperation with such recog-
nized Governmnental agencies as the Bureau of Standards, classifiea-
tions, specifications, and standards of quality, with a. viewv to their
recommendation to and adoption by the Subdivision.
(c) Employers having a common interest and common probilms
mnay be grouped by.7 Code Authlority for administrative purposes into
various groups or product classifications and report of such g~ropp-
ings shall be made to the Administrator.
In each group or product classification there shall be a Group
Code Autho~rity appointed by Code Authority. If formal co-mplaint
is made to Code Authority that any of thle provisions of this Sup-
plemental Code have been violated by any employer, such complaint.
shall be immediately reported to the proper G~roup Code Authorit~y,
which shall investigate the comnplaint, and to that end may, to the
extent permitted by thle Act, cause such investigation, exam~ination,
or audit to be ma~de as may be deemed necessary, and shall report
the results of such investigation, examiination or audit to Code
(d) The Code Authority may appoint a. trade practice committee
which shall meet with the trade practice committees appointed under
such other codes as may be related to the Subdivision for the pur-
pose of formullati;n fair trade practices to govern the relationships
between production and distribution employers under this code and
under such others to thle end that such f~air trade practices may be
proposed to the Admninistrator as amendments to this Code and
such other codes.
(e) The Code Authority shall have the right. to investigate any
complaint regarding any transaction coming under the scope of this
Supplemental Code, on which any unfair competition is alleged, and
to that end mlay, to the extent permitted by the Act, cause such
examiination or audit to be made as may be deemed necessary and to
report any s~uch allegoed violation to the proper authorities for action.
AnnOLE VIACCOUN.TING AND COSTING
~The Codle Aut~hority shall cause to be formulated an accounting
systemn and methods of cost finding and/or estimlating capable of use
by all employers of the Subdivision. After such system and methods
have been folrmula~ted, full details concerning them shall be made
available to all emp~loyers. Thereafter all employers shall determine
anld.'ar estimate costs in accordance with the principles of such
AnnOCLE VI[I--SEILNG BELOW REASONABLE ClOST
SECEcON 1. When the Code Authority determines that an emer-
gency exists as to any product or products in this Subdivision and
that the enuse thereof is destructive price-cutting such as to render
ineffective or seriously endanger the maintenance of the provisions
of this Supplmcrental Code, the Code Authority may cause to be
determined~ the lowest reasonable cost of such product or products
of this Subdivision, such determination to be subject to such notice
and hearing as the Admninistrator may require. The Administrator
may approve, disapprove, or modify the determiination. There-
after, durring the period of the emergency, it shall be an unfair trade
practice for any employer of the Subdivision to sell or offer to sell
any product or products of the Subdivision for which the lowest
reasonable cost has been determinedly at such prices or upon such
terms or conditions of sale that the buyer will pay less therefore
than the lowe~st reasonable cost of such products.
MTien it appears that conditions havle changed, the Code Au-
thority, upo~n its own initiative or upon the request of any interested
party, shall cause the determiination to be reviewed.
SECTION 2. The foregoing Section (1) shall not apply to (a)
dropped lines, or (b) seconds, or (c) inventories whlich must be
convlerted~ into cashr to meet emergency needs, all of which may be
disposedl of by any employ:jer, at anyr price andl on any terms or
cond~itionis, but onl- i such employer, not less thann t.w-o weeks be-
fore suen~I proposed disposal,: has filedl wTith Codle Author~ity a state-
mnent in writmxg setting f~r~t}. thEe facts of, and reasons for, such
propo'ced disposal Rand the arirce and terms and conditions of sale,
and Codle Auth~ority has noct, (w~ith the approv-al of the Admninis-
trator), before the termination! of such tw~o weirk pecriodl, in wr~iting.
disapproved the propovsed disposal.
SECrTON 3. The foregoing Section (1) shall not apply to a sale
made in order to meet competition on products manufactured out-
side the United States. For such disposal, any employer may sell,
at prices and on terms and conditions as favorable as those of the
competing foreign product, but only if he has first reported to the
Code Authority hhis intention so to sell,-and the facts as to the compe-
tition which justifies such action.
For the purpose of gathering statistical data for the determina-
tion or revision of a lowest reasonable cost under this Article VII,
thle Code Authority shall have power on its owvn initiative, or on
the request of any employer, to investigate, t~o the extent permitted
by the Act, any price or the terms of sale and payment for any
product or products of this Subdivision manufactured by any eni-
ployer; and, for the purpose of the investigation thereof, to require,
to the extent permitted by the Act, such employer to furnish such.
information concerning the Pcst. of manuifactuiring and selling such
product or products as the Code Authority shall deem necessary or
proper for such purpose.
Arrict VIII--PlurcE Lrsms
(a) If and when the Code Authority determines that in any group
of the Subdivision it has been the generally recognized practice to
sell a. spec~ifed product on the basis of net price lists, or price lists
with discount sheets, and fixed terms of sale and payment, each
employer manufacturing such product shall, within ten (10) days
after notice of such determination, file with the Code Authority, a
net price list, or a price list and discount sheet, as the case may be,
individually prepared by him, showing his current prices, or prices
and discounts, and terms of sale and payment, and the Code~ Author-
ity shall immediately publish and send copies thereof to all known
em ploye rs in the Subdivision manufacturing such specified product.
Revised price lists and/or discount sheets and,'or terms of sale
and payment may be filed from time to time thereafter with the
Code Authority by any employer manufacturing such product., but
such revised price lists and/'or discount sheets and/or terms of sale
and payment shall be filed with the Code Authority twenty (20) days
in advance of the effective date specified. The C~ode Authority or
the proper Group Code Authority may establish a shorter period at
any time, provided no revisions then waiting operative date shall.
be affected thereby. Copies of such revised price lists and/or dis-
count sheets and,'or terms of sale and payment with notice of the
effective date specified, shall be immediately published and sent to
all known employers in the Subdivision manufacturing such prod-
uct, any of whom may file, if he so desires, to become effective upon
the date when the revised price list and/or discount sheet and/or
'terms of sale and payment first filed shall go into effect, revisions
of his price lists and,/or discount sheets and/or terms 0f sale and
payment establishing prices or prices and discounts not lower or
terms of sale and payment not better than those established in the
revised price lists and/or discount sheets and/or terms of sale and
payment first filed.t
Ss ee paragraph 2 (1) of order approving thla Code.
(b) If and when the Code Authority shall determine that in anyp
group of t~he Subdivision, not now selln its product on the basis
of price lists, with or without discount seets, with fixed terms of
sale and payment, the distribution or marketing conditions in said
group' are the samne as, or similar to, the distribution or marketing
conditions in a group of the Subdivision where the use of price
lists, with or wFithlout discount sheets, and fixed terms of sale and
pa8yment, is well recognized, 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
employer manufacturing the product or products of such group shall
within tw-enty (20) days after notice of such determination, file with
the Cod~e 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 and/'or discount sheets and/or terms of sale and payment shall
be published and sent to all known employers in the Subdivision
manufacturing such product, and may thereafter be revised in the
manner hereinabov-e provided; provided, however, that the Code
Authority shall make no determination to place any product of the
Subdivisio ntnon naprice list basis) on a price list basis,
as provide in o thsprarp (b) of Article VIII, unless affirmative
consent to such determination is given by a 662,5 per cent vote of em-
ployers in the Subdivision who are at that time engaged in manu-
facturingr such product, and who are entitled to vote pursuant to
the provisions of Section (a) of Article V hereof, weighted on the
basis of one vote for each $50,000 of sales of products of the Sub-
division made in the latest previous calendar year for which sta-
tistics have been reported to Code Authority, provided, however,
that each employer who reports his sales shall have at least one vote.
(c) No employer shall take or accept in trade any second-hand
or ol'd equipment in part payment for new equipment, provided, how-
ever, that this paragraph shall not be construed to prohibit the return
to the vendor within one year from the date of shipment of, and the
allowance by the vendor of any fair adjustment on, any product
which shall not have met the specified purposes for which it was
sold. Anly employer may assist in findmng a bona fide buyer for
second-hand or old equipment, but in no case shall he guarantee
any particular return thereon or therefor.8
(d) 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 require for administration and distribution.
(c) No emp~loyer shall bid, quote or sell directly or indirectly by
any meanis whatsoever, any product of the Subdivision covered by
thle provisions of this Article VIII at at price or at discounts or on
terms of sale anld payment different from those provided in his own
current net prlice lists, or price lists and discount sheets, with terms
of sa~le andl payment.
(f ) No employer shall sell to or through any brok-er, jobber, com-
mission account or sales agency, (this is known in the trade as
"L pooled buying ") who or which is in fact an agent for an organiza-
* rSee paragraph 2 (2) of order approving this Code.
tion of retailers or industrial consumers, with the result that any
retailer or industrial consumer secures a discount, allowance or price
different from the discount, allowance or price provided for pur-
chasers of the same class in the employer's own current net price
lists or price lists with discount sheets.'
(g) No employer shall sell to or through any Aistributor who
shall fail to agree to resell in accordance with the provisions of
Articles VII, VIII and IX of this Supplemental Code.'
ARnOCLE IS-UNFABIR Paw~r~lCES
(a) No employer shall pay or allow any rebate, credit, subsidy or
discount, in money or otherwise, with intent to influence any sale;
except as expressly provided in written quotations, written contracts
or invoices, or in price lists, discount sheets, or terms of payment
fied with Code Authority.
(b) No employer shall pay or promise to pay money, or give or
promise to give any valuable thing, to any a~pent, fridcipary or
representative rwtottekoldeo i rnia o
the purpose of influencing any sale to his principal. This commer-
cial bribery provision shall not be construed to prohibit free and
general distribution of articles commonly used for advertising except
so far as such articles are actually used for commercial bribery as
(c) No employer shaUl untruthfully advertise, represent or mark
any product with intent to deceive or mislead prospective purch ase rs.
(d) N emplyer wning a patent or trade mark shall intimidate
customers of ao m legd' infringers of such patent or trade mark by
threats of suit not made in good faith.
(e) So long as any employer, or his successor in business, manu-
facturing any product of this Subdivision which bears the manu-
facturer's name or trade mark and which has required special design-
ing, research or development expense continues to make, and supply
such spare, repair or replacement parts for such product, no other
employer shall supply such spare, repair, or replacement parts for
such product unless (1) the name of the actual manufacturer of such
parts shall be plainly marked on each part, or, if this is impracti-
cable, on the package or tag, and (2) in catalogues, price lists,
quoted prices, a-dvertisements, or advertising literature the ultimate
user shall be clearly informed that such parts were not made by
the original manufacturer of the product for which such parts are
(f) No employer shall furnish to any purchaser (except the UTnited
States Government and the owners of ocean going ships, or as may
be required by the American Bureau of Shippmng, or Lloyds) and/or
his agents, directly or indirectly, detailed shop drawings of the
products of this Subdivision, without filing a statement of such
proposed disposal with th~e Code Authority, which may approve, or
with the approval of the Administrator, may disapprove the disposal
within twenty days by written notice to the employers.
(g) No employer shall disseminate false or misleading or dis-
paraging information relative to competitor's products, selling prices,
Bee paragraph (8) of order approving this Code.
reputation, credit or financial standing, ability to perform wRork or
(h) No employer shall wilfully interfere by any means or device
w'hatsoever with ainy existing commercial contract or order dealing
withl the production, manufacture, transportation, purchase or sale
of any product of the Subdivision.
AnncLE. XSus SL FRu ExronrT
The provisions of this Supplemnental Code concerning pricing and
markietmg~ shall not apply to direct export sales of any product. A
simiilar exemnption m~ay be granted by the Code Aut~hority as to sales
of ainy product destined ultimately for export. Unless otherwise
determined by the Code Authority, the term "' export shall include
all shipments to all places without the several states of the United
States and thle District of Columbia; provided, however, that no
sh~ipm~ent to any territory or possession of the United States shall
be consideredl as export when, any employer is engaged in the
Subdivision in such territory or possession.
ARTICLE XIT.-M'oovIC ATIJONSg AN.D TER1uINATION
(a) As provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify any order, approval, license, rule
or regulation issued under Title I of the Act.
(b) Any additions to, amendments, revisions, or supplements of,
this Supplemental Code, approved by a 66%, per cent vote of em-
ployers in the Subdiv-ision who are entitled to vote pursuant to the
povisions of Section (a) of Article V hereof, weighted on the
bsis of one vote for each $100,000 of sales of products of the Sub-
division mnade in the latest previous calendar year for which statis-
ties have~ been reported to Code Authority, provided, however, that
each employer wrho reports his sales shall have at least one vote,
shall be mn full force andi effect. upon approval by the Admuinistrator.
(c) This Supplemental Code shall terminate on Junie 16, 1935, or
on such late prior th~ereto when the Act shall be repealed or the
]President shall, by proclamation, or the Clongress shall, byjot
resolution, direct that the etmergenlcy recognized by Section 1 o h
Act hlas ended.
As is provided by Article IX of the Clode, upon thirtyr la ys' notice
to Basic Code Authority and to the Administrator, this Subdivision
mlay, upon a 60% per cent affirmative vote of employers in th~e
Subdivision who are entitled to vote pursuant to the provisions of
Section (a) of Article V hereof, weightedl on the basis of one vote
for each1 $50,000 of sales of products of the Subdivision made in the
latest previous calendar year for whiich statistics have been reported
to Code Authority, provided, however, that each employer who re-
ports his sales shiall have at least one vote, withdraw fromn the
3urisdliction of Barsic Code Authority. After and in event such with-
drawal is accomplished, this Supplnemental Code, together with the
provisions of the Code, except such portions of Articles I, II[, VI
and VII as are not pertinent thereto, as determined by the Codes
Authority and the Admiinistrator, 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 per-
form all the functions with respect to such Code.
Ann~CLE ~CI-1 -MONOOLUES
.The Supplem"ental Code presented by it is not designed to pro-
mote monopoly, and shall not be so construed or applied as to op-
press or eliminate small enterprises or discriminate against them,
and is designed to effectuate the policy of the Act.
ARTICLE XTIV- EFFECTIVE DATE
This Supplemental Code shall become effective and binding on
all persons engaged in the Subdivision on the elevent~h day after its
Approved Code No. 34t7-Su~pplenient No. 40.
Retgistry No. 1312-U1.
UNIVRSIY OFFLO IDA
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