Agimewd Code No. 201-Supplement No. 21
Registry No. 1201-09,
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COPPER, BRASS, BRONZE, AND
RELATED ALLOYS TRADE
(A Division of the Wholesaling or Distributing Trade)
AS APPROVED ON AUGUST 13, 1934
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GOVERNMENT PRINTING OFFICE
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This publication is for sale by the Superintendent of Documents Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
I irmingham, Ala.: 257 Federal Building.
Eoston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Buiding.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First -National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 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 Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.
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Approved Code No. 201-Supplement No. 21
SUPPLEMENTARY CODE OF FAIR COMPETITION
COPPER, BRASS, BRONZE, AND RELATED
As Approved on August 13, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE COPPER, BRASS,
BRONZE AND RELATED ALLOYS TRADE,
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
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 Supple-
mental Code of Fair Competition for the Copper, Brass, Bronze and
Related Alloys Trade to the Code of Fair Competition for the Whole-
saling or Distributing Trade, and hearings having been duly held
thereon and the annexed report on said Supplemental Code, con-
taining findings with respect thereto, having been made and directed
to the President:
NOW THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, 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
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
:: ROBERT L. HousTON,
S:August 13, 1934.
":'. 802-0"--o044-74---84--- (1)
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report of the hearing on the Supplemental Code
of Fair Competition for the Wholesale Copper, Brass, Bronze and
Related Alloys Trade a division of the Wholesaling or Distributing
Trade, conducted in the North Private Dining Room of the Carlton
Hotel, on May 10, 1934. The Supplemental Code which is attached
was presented by duly qualified and authorized representatives of
the Trade, complying with the statutory requirements, said to rep-
resent 70 per cent in number and about 85 per cent in volume of
sales of the Trade which could be included in this Supplemental
According to statistics compiled by the Division of Research and
Planning, there were in 1933 approximately two hundred (200) firms
engaged in the Trade employing approximately 1,400 employees in.
1933 and having an invested capital of approximately $5,000,000.
No accurate figures are available concerning the annual volume -of
sales but the Trade estimates that approximately $14,000,000 worth
of business was done in 1933.
HOURS AND WAGES
The hours and wages provisions of this Supplemental Code, which
provisions supplement the hours and wages provisions of the Code
of Fair Competition for the Wholesaling or Distributing Trade,
establish a maximum 40 hour work week and a minimum $15.00
weekly wage, except for necessary exceptions.
OTHER PROVISIONS OF THE CODE
The provisions containing definitions are inclusive and accurate.
The administrative provisions of the Code establish a Divisional
Code Authority which is fairly and adequately representative of all
the different elements in the Trade.
The trade practices proposed, are not considered in any way
The 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 which tend to diminish the amount thereof,
and will provide for the general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanction and supervision,
by eliminating unfair competitive practices, by promoting the fullest
possible use of the present productive capacity of industries, by
avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Trade normally employs not more than 50,000 employees
and it 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
applicant association is a trade association truly representative of
the aforesaid Trade; and that said association imposes no inequitable
restrictions on admission to membership therein.
(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
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to the approval of this
For these reasons, the Supplemental Code has been approved.
HUGH S. JOHNSON,
AUGUST 13, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE COPPER, BRASS, BRONZE AND RELATED ALLOYS
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
SUPPLEMENTING ARTICLE I OF THE GENERAL CODE
To effectuate the purposes of Title I of the National Industrial
Recovery Act, this Supplemental Code is established as a Code of
Fair Competition for the Wholesale Copper, Brass, Bronze and
Related Alloys Trade, pursuant to Article VI, Section I (c) of the
General Code of Fair Competition for the Wholesaling or Dis-
tributing Trade, approved by the President of the United States
on January 12,.1934. All provisions of the said General Code which
are not in conflict with the provisions of this Supplemental Code
are hereby specifically incorporated by reference in. this Supple-
mental Code and made part hereof. Such provisions of the Gen-
eral Code, together with the provisions of this Supplemental Code,
are the standards of fair competition for and are binding upon
every member of the Wholesale Copper, Brass, Bronze and Related
SUPPLEMENTING ARTICLE II OF THE GENERAL CODE
SECTION 1. The term "wholesaler" or "distributor" as used
herein is defined to mean any individual, partnership, association,
corporation, or other form of organization, or a definitely organized
division thereof, definitely organized to render and rendering a gen-
eral distribution service which buys and/or maintains at his or its
place of business a stock of mill products of copper, brass, bronze
and related alloys, or any of them, which it distributes, and which
through salesmen, advertising and/or sales-promotion devices sells
to retailers and/or to institutional, commercial and/or industrial
users, but which does not sell in significant amounts to ultimate
SECTION 2. The term the Trade as used herein is defined to
mean the business in which a wholesaler or distributor as defined
above is engaged.
SECTION 3. The term General Code" as used herein is defined to
mean the Code of Fair Competition for the Wholesaling or Dis-
SECTION 4. The term "Supplemental Code" as used herein is
defined to mean this Supplemental Code for the Wholesale Copper,
Brass, Bronze, and Related Alloys Trade.
SECTION 5. The term General Code Authority as used herein
is defined to mean the General Code Authority authorized by Sec-
tion 2 of Article VI of the General Code.
SECTION 6. The term Divisional Code Authority" as used herein
is defined to mean the Divisional Code Authority for the Wholesale
Copper, Brass, Bronze and Related Alloys Trade, a division of the
Wholesaling or Distributing Trade.
SECTION 7. The term consignment" as used herein is defined to
mean leaving merchandise with a customer for sale or use, the title
to remain in the consignor.
SECTION 8. The term member of the Trade" as used herein is
defined to mean any Wholesaler or Distributor engaged in the Trade.
SECTION 9. The term geographical sections' as used herein is
defined to mean the geographical sections of the United States to be
designated by the Executive Board of the Association, subject to.the
approval of the Administrator.
SECTION 10. The term "Association is defined to mean the Cop-
per and Brass Warehouse Distributors Association.
SUPPLEMENTING ARTICLE II, SECTION I OF THE GENERAL CODE
SECTION 1. Maximum Hours and Exemptions (superseding Article
III, Section 1 (a), (b), (c), (d), and (e) of the General Code):
(a) No member of the Trade shall cause or permit any employee
except an employee in an executive, supervisory, technical, or pro-
fessional capacity who receives $35.00 per week or more, and except
watchmen, outside salesmen, outside delivery men, maintenance men,
outside repair service men and installation men, to work more than
eight (8) hours in any one day, nor more than forty (40) hours per
week, nor more than six (6) days in any one week, except as here-
(b) No member of the Trade shall cause or permit any watch-
man to work more than nine (9) hours in any one day, nor more than
fifty-four (54) hours in any one week, nor more than six (6) days
in any seven (7) day period.
(c) No member of the Trade shall cause or permit any outside
delivery man, maintenance man, outside repair service man, or in-
stallation man to work more than forty-eight (48) hours per week.
(d) A member of the Trade may work any employee such hours
as may be necessary in excess of the hours specified m Sub-sections
(a), and (c) of this Section, if time and one-third is paid for all
such additional hours but in no case shall any member of the Trade
cause or permit any employee to work more than eight (8) hours
per.week in excess of his regular hours as specified in Sub-sections
(a) and (c) of this Section.
SUPPLEMENTING ARTICLE IV OF GENERAL CODE
8 bkSe*~ 1o (Superseding Article IV, Section 1 (a), (b), (c), (d),
and (e) of the General Code.)
(a) No employee shall be paid less than at the rate of fifteen
dollars ($15.00) per week of forty (40) hours.
(b) A part-time employee or one paid on an hourly basis shall
be paid not less than forty cents (400) per hour. Any employee who
works less than the maximum weekly hours of labor specified in
Article III above for his class of work shall be considered a part-time
(c) This Article establishes a minimum compensation for each
class of workers irrespective of whether an employee is actually
compensated on a time rate, piece work, commission, or other basis.
SECTION 2. (Superseding Article IV, Section 2 of the General
Code.) No hourly, daily or full-time weekly compensation for em-
ployees who are paid less than fifty dollars ($50.00) per week shall
be less than such compensation existing as of June 16, 1933, and
no employee shall be paid a wage rate which will yield a less wage
for the shorter full-time week herein established than he could have
earned for the same class of work .for the longer full-time week
existing as of June 16, 1933. Wage increases established under the
President's Reemployment Agreement shall at least be maintained.
ARTICLE V.-GENERAL LABOR PROVISIONS
SUPPLEMENTING ARTICLE V OF THE GENERAL CODE
SECTION 1. Posting Code.-Each employer shall post in conspic-
uous places, accessible to employees, copies of Article I to V, inclu-
sive, of this Supplemental Code and of the General Code.
SECTION 2. No employee shall be dismissed or demoted by reason
of making a complaint or giving evidence with respect to an alleged
violation of this Supplemental Code or the General Code.
SECTION 3. Every employer shall make reasonable provisions for
the safety and health of his employees at the place and during the
hours of their employment.
SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE
SECTION 1. (a) The Divisional Code Authority shall be composed
of five (5) members of the Trade, three (3) of whom shall represent
members of the Trade who are members of the Association and
two (2) of whom shall represent members of the Trade not members
of the Association. For initial organization purposes the members
of the Divisional Code Authority shall be nominated in the follow-
ing manner. The three (3) members representing the Association
shall be nominated by the Executive Board of the Association. The
Executive Board of the Association shall place these three (3) names
on a ballot which shall contain blank lines for the inclusion of the
same number of additional names which may be filled in by any
member of the Trade voting for the Divisional Code Authority.
Such ballots shall be mailed to all members of the Association.
(b) The two (2) members of the Divisional Code Authority
representing members of the Trade not members of the Association
shall be selected by a plan to be approved by the Administrator and
shall, by the Executive Board of the Association, be placed upon a
ballot which shall contain blank lines for the addition of two (2)
other names. These ballots shall be mailed to all members of the
Trade not members of the Association whose names can be ascer-
tained after diligent search on the part of the Executive Board of
(c) Each ballot shall be accompanied by a definition of a whole-
saler or distributor as defined in Article II, Section 1 above, and in
order for any ballot to be counted, it shall be accompanied by a
signed statement that the voting member of the Trade comes within
the terms of such definition and shall also be accompanied by a
certificate of assent and compliance, and shall be postmarked not
later than ten (10) days after the date of mailing by the Executive
Board of the Association. All ballots, both for members of the
Divisional Code Authority who are members of the Association and
for members of the Divisional Code Authority who are not members
of the Association, shall be counted by the Executive Board of the
Association between the seventeenth and twentieth days after being
first mailed out by the Executive Board, and the result of such count
certified to the Administrator.
(d) The terms of office of members of the Divisional Code Au-
thority and the method of electing their successors, either for full
new terms or for unexpired terms, shall be established in the By-
laws of the Divisional Code Authority.
(e) There shall be elected from the Divisional Code Authority an
Executive Committee composed of three (3) members of the Divi-
sional Code Authority, at least one of whom shall be a nonmember
of the Association.
(f) Each member of the Trade shall within thirty (30) days from
the effective date of this Supplemental Code register with the Divi-
sional Code Authority. All members of the Trade who may engage
in the Trade thereafter shall likewise register with the Divisional
Code Authority. Registration of a member of the Trade shall in-
clude the full name and mailing address of the member. The time
limit for the registration by any member of the Trade may be ex-
tended whenever, in the opinion of the Administrator, the time
limit as'provided herein might cause an injustice to any member of
(g) The Executive Committee shall have such powers and duties
as may be fixed by the Divisional Code Authority, subject to the
appoval of the Administrator.
(h) The Divisional Code Authority shall have the following
duties and powers, in addition to those prescribed in the General
Code, subject to review by the Administrator:
(1) To appoint a Trade Practice Committee, which shall meet
with the Trade Practice Committees appointed under such other
Codes (except Supplemental Codes to the General Code) as may be
related to the Trade for the purpose of formulating Fair Trade
Practices to govern the relationship between production and distri-
bution employers under this Supplemental Code and under such
others to the end that such Fair Trade Practices may be proposed to
the Administrator as an amendment to this Supplemental Code and
such other. Codes.
S(2) To appoint a Regional Committee in each of such regions and
districts as the Divisional Code Authority may establish, to assist
the Divisional Code Authority in administering this Supplemental
Code and the General Code; provided, however, that nothing herein
shall relieve the Divisional Code Authority of .its responsibilities as
(3) To organize, elect officers, hire employees and perform such
other acts as may be necessary for the proper administration of.
this Supplemental Code and the General Code.
(4) To study the Trade Practice provisions of this Supplemental
Code and the operation thereof, and make such recommendations
from time to time, to the Administrator as it deems desirable for
modification or addition thereto.
(5) To obtain from members of the Trade such information and
reports as are required for the administration of this Supplemental
Code and the General Code. In addition to information required
to be submitted to the General Code Authority and to the Divisional
Code Authority, members of the Trade subject to this Supplemental
Code shall furnish such statistical information as the Administrator
may deem necessary for the purposes recited in Section 3 (a) of the
Act to such federal and state agencies as he may designate; pro-
vided that nothing in this Supplemental Code shall relieve any
member of the Trade of any existing obligations to furnish reports
to any governmental agency. No individual report shall be disclosed
to any other member of the Trade or any other party except to such
governmental agencies as may be directed by the Administrator.
(6) To adopt by-laws and rules and regulations for its procedure.
(7) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein; provided that nothing herein shall relieve the Divisional
Code Authority of its duties or responsibilities under this Supple-
mental Code, and that such trade associations and agencies shall
at all times be subject to and comply with the provisions hereof.
(8) To appoint a special committee on overlapping which shall
meet with trade practice committees and/or special committees
on overlapping which may be appointed by the General Code Au-
thority and/or by the Divisional Code Authorities administering
other Codes of Fair Competition Supplemental to the Code of Fair
Competition for the Wholesaling or Distributing Trade covering
kindred lines and/or by the Code Authorities administering other
Codes covering the wholesaling and distributing of kindred lines,
for the purpose of formulating recommendations to be submitted
to the respective Code Authorities and to the Administrator for such
modifications of this Supplemental Code and/or such other Code.
or Codes as may be necessary to eliminate, insofar as possible, con-
flicts between the fair trade practice provisions of this Supple-
mental Code and the fair trade practice provisions of such other
Code or Codes.
(9) To from time to time suggest modifications of and/or amend-
ments to this Supplemental Code and to assent to such modifications
and/or amendments and to the Supplemental Code in its final form
as modified and/or amended.
SEwnow 2. Nothing contained in this Supplemental Code shall
constitute the members of the Divisional Code Authority partners
for any purpose nor shall any member or members of the Divisional
Code Authority be liable in any manner to anyone for any act of
any other member, officer, agent, or employee of the Divisional Code,
Authority. Nor shall any member of the Divisional Code Authority,
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act, under
this Supplemental Code, except for his own wilful malfeasance or
SECTION 3. If the Administrator shall determine that any action
of the Divisional Code Authority or any agency thereof may be
unfair or unjust or contrary to the public interest, the Administrator
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and for further con-
sideration by such Divisional Code Authority or agency, pending
final action, which shall not be effective unless the Administrator
approves or unless he shall fail to disapprove after thirty (30) days'
notice to him of intention to proceed with such action in its original
or modified form.
SErCTIO 4. In order to support the administration of this Supple-
mental Code and to maintain the'standards of fair competition
established, by this Supplemental Code and to effectuate the policy
of the Act, the Divisional Code Authority is authorized, subject to
the approval of the Administrator:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of this Supplemental Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary.
to support such budget shall be contributed by members of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and secure equitable con-
tribution as above set forth by all such members of the Trade, and
to that end, if necessary, to institute legal proceedings therefore in its
(d) Each member of the Trade shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Divisional Code
Authority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the Trade complying with this Supplemental Code
and contributing to the expenses of its administration as herein-
above provided, unless duly exempted from making such contribu-
tions, shall be entitled to participate in the selection of members
of the Divisional Code Authority or to receive the benefits of any
of its voluntary activities or to make use of any emblem or insignia
of the National Recovery Administration.
(e) The Divisional Code Authority shall neither incur nor pay
any obligation in excess of the amount thereof as estimated in its
approved budget, except upon approval of the Administrator; and
no subsequent budget shall contain any deficiency item for expendi- :
tures in excess of prior budget estimates except those which the
Administrator shall have so approved.
AmRTCLE VII-TRADE PRACTICES
SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE
SECTION 1. No member of the Trade shall knowingly procure, by
secret or unfair methods, any information concerning the business
of such other member or the Trade which is properly regarded by
the latter as a trade secret or confidential within the latter organiza-
tion, other, than information relating to a violation of any provisions
of this Supplemental Code and the General Code.
SECTION 2. No member of the Trade shall sell or substitute any
material or product different in brand, kind, or quality from that
specified by the purchaser thereof.
SECION 3. No member of the Trade shall knowingly aid or abet
Sany person, firm, association, or corporation in any unfair trade
practice, prohibited by any approved Code or Supplemental Code.
SECTION 4. No member of the Trade shall make or give to any
purchaser of any merchandise any guarantee or protection in any
form against any decline in the market price of such product.
SECTION 5. No member of the Trade shall, except with the consent
of the Divisional Code Authority, accept returned merchandise for
credit unless the customer is charged therefore in an amount not less
than the cost incurred by such member in handling the returned.
goods; provided, however, that (a) this Section shall not apply to
transactions in which the seller is at fault; and (b) in any State in
which this Section may conflict with applicable State law, this Sec-
tion shall not apply to the extent of such conflict.
SECTION 6. No member of the Trade shall purchase scrap from
customers at higher prices than the current mill schedules for scrap
for the purpose of influencing or inducing the purchase by such
customers of mill products.
SECTION 7. No member of the Trade shall submit any bid or in-
voice any sale unless each item is shown separately. An itemized
invoice shall be rendered for each delivery and a copy thereof re-
tained by the seller.
SEcTION 8. No member of the Trade shall ship or deliver any. mer-
chandise on consignment, except that under unusual conditions such
consignment sales may be permitted by the Divisional Code
SECTION 9. No member of the Trade shall use any subterfuge to
frustrate the spirit and intent of this Supplemental Code and/or
the General Code.
SECTION 10. No member of the Trade shall compute quantity dis-
counts and/or quantity extras on any other basis than that of the
quantity shipped and/or billed to a single buyer. .
U. ..: ,.
ARTI[e VIII--PEmn ssIrv TRADE PRACTIrE
SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE
SECuON 1. Each member of the Trade shall file with a confidential
and disinterested agent of the Divisional Code Authority or, if none
then with such an agent designated by the Administrator, identified
lists of all of his prices, discounts, rebates, allowances, and all other
terms or conditions of sale, hereinafter in this Article referred to as
'price terms', which lists shall completely and accurately conform
to and represent the individual pricing practices of said member in
each section or region in which he operates. Such lists shall contain
the price terms for all such standard products of the Trade as are
sold or offered for sale by said member and for such non-standard
products of said member as shall be designated by the Divisional
Code Authority. Said price terms shall in the first instance be filed
within twenty (20) days after the date of approval of this Supple-
mental Code. Price terms and revised price terms shall become effec-
tive immediately upon receipt thereof by said agent. Immediately
upon receipt thereof, said agent shall by telegraph or other equally
prompt means notify said member of the time of such receipt. Such
lists and revisions, together with the effective time thereof, shall upon
receipt be immediately and simultaneously distributed to all mem-
bers of the Trade and to all of their customers who have applied
therefore and have offered to defray the cost actually incurred by the
Divisional Code Authority in the preparation and distribution
thereof and be available for inspection by any of their customers at
the office of such agent. Said lists or revisions or any part thereof
shall not be made available to any person until released to all mem-
bers of the Trade and their customers as aforesaid; provided, that
prices filed in the first instance shall not be released until the expira-
tion of the aforesaid twenty (20) day period after the approval
of this Supplemental Code. The Divisional Code Authority shall
maintain a permanent file of all price terms filed as herein provided,
and shall not destroy any part of such records except upon written
consent of the Administrator. Upon request the Divisional Code
Authority shall furnish to the Administrator or any duly designated
agent of the Administrator copies of any such lists or revisions of
SECTION 2. When any member of the trade has filed any revision,
such member shall not file a higher price within forty-eight (48)
SECTIN 3. No member of the Trade shall sell or offer to sell any
product of the Trade, for which price terms have been filed pursuant
to the provisions of this Article, except in accordance with such
SECTION 4. No member of the Trade shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the Trade
to change his price terms by the use of intimidation, coercion, or any
other influence inconsistent with the maintenance of the free and open
market which it is the purpose of this Article to create.
SECTION 5. (a) Wilfully destructive price cutting is an unfair
method of competition and is forbidden. Any member of the Trade
or of any other trade or industry or the customers of either may, at
any time, complain to the Divisional Code Authority that any actual
price constitutes unfair competition as destructive price cutting, im-
perilling small enterprises or tending toward monopoly or the
impairment of code wages or working conditions. The Divisional
Code Authority shall, within five days, afford an opportunity to the
member making such price to answer such complaint and shall,
within fourteen days, make a ruling or adjustment thereon. If such
ruling is not concurred in by either party to the complaint, all papers
shall be referred to the Research and Planning Division of N.R.A.
which shall render a report and recommendation thereon to the
(b) When no declared emergency exists as to such products or any
specified part thereof, there is to be no fixed minimum basis for
It is intended that sound cost estimating methods should be used
and that consideration should be given to costs (including costs of
wholesale distribution) in the determination of pricing policies.
(c) To establish the basis of cost, the Divisional Code Authority
may exercise its right at any time to call for supporting evidence of
any sale price. The supporting evidence for any sale price shall be
entirely confidential, and shall not be disclosed to any parties other
than the Divisional Code Authority and/or such parties as the
Administrator may designate.
(d) When an emergency, by reason of unfair competitive prac-
tices or other conditions, exists in the Trade as to such products or
any specified part thereof, sale below the stated minimum price of
such products or such specified part thereof, in violation of Section
6 hereof, is forbidden.
SECTION 6. Emergency Provisions.-(a) If the Administrator,
after investigation, shall at any time find both (1) that an emergency
has arisen within the Trade, adversely affecting small enterprises
or wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purpose of the Act; and
(2) that the finding of a basis for determining minimum prices for
such products or any specified part thereof is necessary for a limited
period, to correct the conditions constituting such emergency and to
effectuate the purposes of the Act, the Divisional Code Authority
may cause an impartial agency to investigate costs (including the
costs of wholesale distribution) and to recommend to the Adminis-
trator a basis for determining minimum prices of the said products
or the said specified part thereof affected by the emergency, and
thereupon the Administrator may proceed to fix a basis for deter-
mining such minimum prices.
(b) When the Administrator shall have fixed a basis for de-
termining minimum prices for the said products or said specified
part thereof for a stated period, which prices shall be reasonably
calculated to correct the conditions of such emergency and to effectu-
ate the purposes of the Act, he shall publish the said basis. There-
after, during such stated period, no member of the Trade shall sell
such products at a net realized price below the minimum price de-
termined upon the basis so fixed, and any such sale shall be deemed
destructive price cutting. From time to time the Divisional Code
.. ... .. i.;:,.l i" ,
Authority may recommend review or reconsideration or the Admin-
istrator may cause any determination hereunder to be reviewed or
reconsidered, and appropriate action taken.
SECTION 7. Each member of the Trade shall adopt and strictly
maintain cash discounts and credit terms to be established
by the Divisional Code Authority subject to the approval of the
This Supplemental Code and all the provisions thereof are ex-
pressly made subject to the right of the President in accordance
with the provisions of Subsection (b) of Section 10 of the National
Industrial Recovery Act from time to time to cancel or modify any
order, approval, license, rules or regulations issued under Title I
of said Act.
ARTICLE X-EFFECIVE DATE
This Supplemental Code shall become effective on the tenth day
after its approval by the Administrator.
Approved Code No. 201-Supplement No. 21.
Registry No. 1201-09.
UNIVERSITY OF FLORIDA
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