~Approved Code No. 347-Supplement No. 25 Registry No. 1399-63
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JULY 6, 1934
WE DO OUR PART
UNiV. OF FL LR'.
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Docment. ashington D Prce 5 cent
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
.Approved Code No. 347-Supplement No. 25
Registry No. 1399-63
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: (.'limlber 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.
Minm.i-~liolis, Miui.: 213 Federal Building.
New Orlea nU. La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Pliil:il-llhi i. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: ('Chmlber of Commerce Building.
Portlaid. Oreg.: 215 New Post Office Building.
St. Lnui-. Mo.: 500 Olive Street.
San Fr'nncis,'o, Calif.: 310 Customhouse.
Seattle. Wash.: 809 Federal Office Building.
Approved Code No. 347-Supplement No. 25
SUPPLEMENTARY CODE OF FAIR COMPETITION
POWER TRANSMISSION INDUSTRY
As Approved on July 6, 1934
SUPPLEMENTAL CODE OF FAIR COMPETITION FOR THE POWER TRANS-
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
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 Power Transmission Sub-
division of Machinery and Allied Products Industry, and hearings
having been duly held thereon and the annexed report on said
Supplemental Code containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Execitive .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 oomplies 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 condition: that the provisions
of Article VIII, Section (a), insofar as they prescribe a waiting
period between the filing with the Code Authority (or such agency
as may be designated in the Supplemental Code) and the effective
date of price lists, as originally filed and/or revised price lists or
revised terms and conditions of sale, be and they hereby are stayed
pending my further order.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
BARTON W. MURRAY,
July 6, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Supplementary Code of Fair Com-
petition for the Power Transmission Subdivision of Machinery and
Allied Products Industry, a Public Hearing on which was held in
Washington, D.C., on December 21, 1933. The Hearing was con-
ducted in full accordance with the provisions of Title I of the
Nation al Industrial Recovery Act.
GENERAL STA TM EM-NT
The Power Transmission Subdivision being truly representative of
the manufacturers of the products defined in Article II of the Sup-
plement-l Code, has elected to formulate and submit a Supplemental
Code of Fair Competition as provided in the second paragraph of
Article I of the Code of Fair Competition for the Machinery and
Allied Products Industry, approved by you on the seventeenth day
of March, 1934.
The Power Transmission Subdivision means the manufacture for
the sale of flat belt pulleys, rope sheaves, couplings, collars, hangers,
pillow blocks, journal boxes, clutches and other incidental machinery
and applia;nmce. used in the transmission of power, but exclusive of
shaiftirg. multiple V-belt drives, belting, cut gears, cut tooth and
cast tooth sprockets, chains, speed reducers, and automotive parts,
and parts thereof, and includes all those engaged in such manufac-
ture for sale. Employers otherwise engaged in the Farm Equip-
ment Industry may manufacture for sale and sell power takeoff
equipment iusedi in connection with tractors and gear reduction
devices for power takeoff for farming machinery, under the pro-
visions of the Code of the Farm Equipment Industry and not under
the provisions of this Code.
This Stubdivision has been severely affected by the recent depres-
sion. This is evidenced by the steady decline in annual sales after
19'!9 from $11,5(0.000 to $2.68,000 in 1933, or 75 per cent. Invested
capital and production capacity have declined 21 per cent and 7
per lnt respectively since 1L29.
In 19l2 the Subdivisio n ecllployed approximately 2.287 factory
worker ., which total declined to 058 in the second quarter of 1933 or
58 percent. Since then employment increased to 1,171 workers as of
November 15, 1933.
E.stimat4'l man hours per week declined from 108,175 in 1929 to a
minimum of 31,355 in June, 1933, or 71 percent, and increased there-
after to 36,420 in November, 1933.
Average weekly earnings declined from $27.58 in 1929 to a mini-
mum of $10.69 in the first quarter of 1933. Since then weekly earn-
ings increased to $16.72 as of Novembier 15, 1933.
Based on the distribution as of June 15, 1'J:33 and the specified
percentages of the number of wage earners receiving less than the
designated rates the adoption of the proposed minimum hourly rates
will ca use an increase in hourly factory pay rolls of this Industry.
The wage provisions for the Subdivision, which is operating under
the Code of the Machinery and Allied Products Industry, provide
that employees engaged in plant operations shall be paid as follows:
(1) in cities of more than 50,000 population and their immediate
vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not
more than 50,000 population and their immediate vicinity, which
cities are not in the immediate vicinity of a city of more than 50,000
population, 38 cents per hour; (3) in cities of 10,000 population or
less and their immediate vicinity, which cities are not in the imme-
diate vicinity of a city of more than 10,000 population, 36 cents per
hour, except that employees engaged in plant operations in all locali-
ties in the states of Virginia, North Carolina, South Carolina,
Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, Louisi-
ana, Texas, and Oklahoma, shall be paid not less than 32 cents per
When 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% of the minimum wage.
Employees other than those engaged in plant operations shall re-
ceive not less than $15.00 per week.
This Supplemental Code provides that no person under sixteen
years of age shall be employed in this Subdivision.
RESUME 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 employment provisions
of the Code of Fair Competition for the Machinery and Allied
Products Industry as approved by you and as from time to time
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 setting up, revising, and
filing price lists and discount sheets and terms of 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 direct export sales
or to any product destined ultimately for export.
Article XI. This Supplemental Code and all the provisions thereof
are expressly made subject to the right, of the President in accordance
with subsection (b) of Section 10 of the Act, from time to time to
cancel or modify any order, approval, license, rule or regulation
issued under said Act. Provision is also made that modifications
may be submitted by the Code Authority.
Article XII provides means for withdrawal of this Subdivision
from the Basic Code 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 eliminate, oppress, or discriminate against small
Article XIV states the 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 busiL of all the proceedings in this matter:
I find that:
(a) Said Suppleliienltal 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 the
trade groups, by inducing and maintaining united action of labor
and riiina ti igemit under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practicee,, by promoting
the ftllk--t possible utilization of the present productive capacity of
indu-tries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing plurc chasing
power, by reducing and relieving 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 Sipplenmenltal Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including,
without limitation Su(b-ect io( (a) of Sect ion 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
inlliiital.ble restrirtiins on adniiiion to memiibershp therein.
(d) The 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 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 approval of said
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication
are stayed, as stated in the Order.
HuGII S. JOHNSON,
JULY 6, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
POWER TRANSMISSION INDUSTRY
A DIVISION OF THE :MACHINERY AND ALLIED PRODUCTS INDUSTRY
ARTICLE I-Pur POSES
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Supple-
mental Code of Fair Comptetition for the Power Transmission Sub-
division of the Machinery and Allied Products Industry, and,
,together with the Code of Fair Competition for the Machinery and
Allied Products Industry, shall be the standard of fair competition
for this Subdivision, and shall be binding on each employer therein.
"Applicant" means the Power Transmission Association, a trade
organization, all members of which are engaged in the manufacture
and sale of the products of the Power Transmi;ssion Subdivision of
Machinery and Allied Products Industry.
In iJu.triy means the Machinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the
Preildent, and as such definition may from time to time be amended.
'" S7l,/Jiri,;n means the Power Transmission Subdivision of the
Mac..hinery and Allied Products Industry as defined and set forth
in paragraph 21, Article II of the Code of Fair Competition for
the Machinery and Allied Products Industry, as follows:
"Power Trninslisusion Subdivision means the manufacture for
sale of flat belt pulleys, rope sheaves, couplings. collars, hangers,
pillow blo-ks., journal boxes, clutches, and other incidental ma-
chinery and appliances used in the transmission of power, but
exclusive of shafting, multiple V-belt drives, belting, cut gears, cut-
tooth and cast-tooth sprck1ets, chains. speed reducers, and auto-
m,,itive parts, and parts thereof, and includes all those engaged in
such iiinaiiifa;rtre for sale.
Employers otherwise ingiaged in the Farm Equipment Industry
may manufacture for sale and sell power take-off equipment used
in cornrirction with tra.rtors and gear reduction devices for power
takc-off for farming imanlini.ry, under the provisiiins of the Code
of the Farm Eliiijpinliit Industry and not under the provisions of
"Code inoans the Codle of Fair Competition for the Machinery
and Allied Produt-ts Industry, as approved by the President, March
17, 1934, and as from time to time nmenhled.
P 'si means a natural person, a partner.hlip, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver
or other entity.
"Employer" means any person engaged in this Subdivision of
the Industry, either on his own behalf or as an employer of labor.
"Emplo0ee means any one who is employed in this Subdivision
by any such employer.
"The Act" means Title I of the National Indusitrial Recovery
"The Pres'ident means the President of the United States.
"Admindstft or" means the Administrator for Induistirial Rec,,v-
"Basic Code Authort!l means the Code Authority for the Ma-
chinery and Allied Products Industry as contituted by the Code.
Code Authority means the Code Authority constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
Group Code Authority" means the Code Authority for any
Group or product classification within this Subdivision, constituted
under the authority of Article V of this Supplemental Code.
Method of Piicing means net price lists and terms of sale and
payment, or price lists with discount sheets and terms of sale and
"Publish" means to make available to all interested parties.
ARTICLE III-EMPLOYMENT PROVISIONS
The following Articles of the Code, viz: Article III, "Working
Hours "; Article IV, Wages "; and Article V, General Labor
Provisions" are hereby made a part of this Supplemental Code,
with the same effect as if they were written into this Supplemental
ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Code, viz: Article II, "Definitions ";
Article VI, "Administration ", to the extent that they will be appli-
cable to this Supplemental Code as such or as it may hereafter be
administered as an autonomous Code; and Article VIII, "Modifi-
cations and Terminations ", are hereby adopted and make a part of
this Supplemental Code, with the same effect as if they were written
into this Supplemental Code.
During the period not to exceed sixty days, following the effective
date of this Supplemental Code, the code committee of the Applicant
shall constitute a temporary Code Authority. This committee shall
consist of not less than 3 and not more than 8 members, and the Ad-
ministrator, in his discretion, may appoint one additional nembner
(without vote and without expense to this Subdivision).
(a) To permit representation of employers who are not members of
Applicant, the Applicant shall, within sixty days after this Supple-
mental Code becomes effective, set up a permanent. Code Authority
to succeed the temporary Code Authority to administer and supervise
and to facilitate the enforcement of this Supplemental Code.
(b) This Subldivisin, having held an election for permanent
Code Authority under the provisions of the Code of Fair Compe-
tition for the Machinery and Allied Products Industry, the Code
Authority so elected shall constitute the first permanent Code Au-
thority for this S:biivision if this method of election meets with
the approval of the Administrator. If this method of election
does not meet with the approval of the Administrator, then the
provisions hereinbelow provided shall apply for the election of the
first permanent Code Authority. For elections after the first, the
provi-ion of this Supplemental Code for election of a permanent
Code Authority shall apply.
(c) If the permanent Code Authority above mentioned is not
approved, the permanent Code Authority shall be elected at a
meeting called for this purpose, to which all known employers in
this Sublivision shall be invited by letter sent by registered mail,
with the right to vote either in person or by proxy. This perma-
nent Code Authority shall consist of not less than 5 and not more
than 9 numbers, and, in addition thereto, the representative of the
Administrator as referred to in the paragraph above. Of the elec-
tive members of permanent Code Authority, one member may be
chosen by the employers (if any) who are not members of the Ap-
plicant, provided such representation shall be desired by such em-
ployers. In the election of the remaining members of permanent
Code Authority, each member of the Applicant shall have one vote,
and a majority vote of members of the Applicant shall elect. Mem-
bers of the permanent Code Authority so elected shall hold office
for terms provided for in the permanent Code Authority Consti-
tution and By-Laws.
Any employer in this Subdivision shall be entitled to vote at the
election of, and share in the benefits of, the Code Authority, and par-
ticipate in any endeavors of the Code Authority in the preparation
of any revisions of, or additions or supplements to, this Supplemen-
tal Code, by paying his proper pro rata share of the reasonable cost
of administering it, as determined by the Code Authority.
Asessments for defraying the expense of administering the Code,
as determined by the Code Authority, shall be pro rated among
employers at such times and in such amounts as may be determined
by a majority vote of the employers entitled to vote; such assessments
to be pro rated upon the basis of gross sales of the products of the
Subdivision, f.o.b. cars at point of manufacture, for the preceding
For the purpose of computing such assessments, each employer
shall submit, upon request of the Code Authority, an accurate state-
menit covering the sales made during the above stated period.
The Code Authority shall have no activities not related to the pro-
visions of this Supplemental Code or the Code. Any employer in the
Subdivision .shall be eligible for membership in the Applicant Asso-
In order that the Code Authority shall, at all times, be truly rep-
rescintative of the Subdivision and in other respects comply with the
p)ro'isi.cns of the Act, the Administrator may prescribe such hearings
as he may deem proper; and, thereafter, if he shall find that the
Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
(d) For the purpose of administering and facilitating the enforce-
ment of the provisions of this Supplemental Code, Code Authority,
by its duly authorized representatives (who shall not be an em-
ployer or in the employ of any employer affected by this Sup-
plemental Code), shall have accss to any and all statistics, data
and information filed in accordance with the provisions of the
Code and this Supplemental Code. All individual statistics, data
and information of individual employers, as filed in accordance with
the provisions of the Code and this Supplemlental Code, shall be
kept confidential, except with the consent of such employer pertain-
ing to his own statistic-, and providing that nothing herein shall
prevent publication of general summaries of such -tatistics of this
(e) For administrative purposes, employers may be grouped by
Code Authority to bring into working association employers having
common interests and problems that are not common to all em-
ployers. Each such group shall designate, from among its members a
Group Code Authority, and may adopt such rules for the conduct of
the business of the Group as are not inconsistent with the provisions
of this Supplemental Code and the Code; provided, however, that
provisions of this Article V shall control the making of all exami-
nations or audits and the use to.be made of information so obtained
with respect to any employer.
(f) Except as otherwise provided in this Supplemental Code, the
Code Authority or a Group Code Authority shall have power to
hear all matters pertaining to the provisions of this Supplemental
Code which may be submitted to it by any employer in its Group,
having relation to the employers in said Group, or any of them, and
to that end, to the extent permitted by the Act, may investigate and
ascertain the facts through such examination or audit as such Group
Code Authority may deem necessary. All matters pertaining to a
particular group shall be referred in the first instance to the Group
Code Authority for that Group, if any has been established.
Any decision of the Group Code Authority shall be final unless
appeal is taken to the Code Authority or such decision involves mat-
ters requiring to be reported to the Code Authority, in which case
pertinent information, papers and data in the possession of the
Group Code Authority shall be turned over by it to the Code Au-
thority, and the Code Authority shall pass on the merits of the
case and make final decision or report thereon to the Basic Code
Authority or the Administrator.
(g) The Code Authority or a Group Code Authority may act,
within its powers, on the affirmative vote of a majority of its elected
members; provided that any proposal receiving less than a majority
vote shall be submitted, upon the request of any member of the Code
Authority or Group Code Authority having jurisdiction, to a vote
of all employers entitled to vote under this Supplemental Code or of
all the employers entitled to vote comprising the Group effected
respectively, and the Code Authority or Group Code Authority
having jurisdiction shall act as determined by the majority of the
number of votes so cast.
(h) If any employer in this Subdivision is also an employer in
any other Subdivision of the Industry, or in any other Industry, the
provisions of this Supplemental Code, and the jurisdiction of the
Code Authority hereunder, shall apply to and affect only that part
of his business and product which is included in this Subdivision.
(i) An appeal from any action taken, or any rule or regulation
established affecting the right of any employer or employee in this
Subdivision, may be taken to the Basic Code Authority and there-
after to the Administrator.
(j) Nothing contained in this Supplemental Code shall constitute
the members of the Code Authority or any Group Code Authority as
partners for any purpose. Nor shall any member of the Code Au-
thority or of any Group Code Authority be or become liable in any
manner to anyone for any act of any other member, officer, agent or
employee of the Code Authority or any Group Code Authority exer-
cising reasonable diligence in the conduct of his duties hereunder,
nor be or become liable to anyone for any action or omission to act
under this Supplemental Code and the Code, except for his own will-
ful misfeasance or non-feasance.
(k) 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 purpose
of formulating fair trade practices to govern the relationships be-
tween production and distribution employers under this code and
under such others to the end that such fair trade practices may be
proposed to the Administrator as amendments to this code and such
ARTICLE VI-ACCOUNTING AND COSTING
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 formulated, full details concerning them shall be made
available to all employers. Upon approval by 662/3%% of the employ-
ers, such accounting system and methods of cost finding and/or esti-
mating shall become effective and thereafter all employers shall
determine and/or estimate costs in accordance with the principles
of such methods.
ARTICLE VII-SELLING BELOW REASONABLE COST
When the Code Authority determines that an emergency exists
in this Subdivision, and that the cause thereof is destructive price-
cutting such as to render ineffective or seriously endanger the mainte-
nance of the provisions of this Supplemental Code, the Code Au-
thority may cause to be determined the lowest reasonable cost of the
product or products of this Subdivision, such determination to'be
subject to such notice and hearing as the Administrator may re-
quire. The Administrator may approve, disapprove, or modify the
determination. Thereafter, during the period of the emergency, it
shall be an unfair trade practice for any employer of the Subdivi-
sion to sell or offer to sell any product or products of the Subdivision
for which the lowest reasonable cost has been determiined at such
prices or upon such terms or conditions of sale that the buyer will
pay less therefore than the lowest reasonable cost of such product or
When it appears that conditions have changed, the Code Author-
ity upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
For the purpose of gathering statistical data for the determina-
tion or revision of a lowest reasonable cost, the Administrator may
require each employer to furnish such information concerning the
cost of manufacturing and selling as the Administiator shall deem
necessary or proper for such purpose.
ARTICLE VIII-METHODS OF PRICING AND TERMS OF PAYMENT
(a) If and when the Code Authority determines that in any branch
or group of the Subdivision it has been the generally recognized
practice of at least two-thirds of such branch or group of the Sub-
division to sell a specified product on the basis of net price lists, or
price lists with discount sheets and terms of sale and payment, each
employer manufacturing such product shall, within ten days after
notice of such determination, file with the proper Group Code Au-
thority (or with Code Authority if there is no Group Code Authority
having jurisdiction) net price lists or price lists with discount sheets
and terms of sale and payment, individually prepared by him, show-
ing his current method of pricing, and the Group Code Authority or
Code Authority shall immediately publi-sh and send copies thereof
to the employers of this Subdivision cooperating under this Code,
as described in Article V (c), and who manufacture like products.
Revisions of the method of pricing and terms of sale and payment
may be filed in like manner, from time to time thereafter, with the
proper Group Code Authority or Code Authority by any manufac-
turer of such products, each such revision to become operative upon
the date specified therein, but such revised method of pricing shall
be filed with the proper Group Code Authority or Code Authority
10 days in advance of operative date. Copies thereof, with notice of
the operative date specified, shall be immediately published and sent
to all employers manufacturing such product or products cooperating
under this Supplemental Code, as described in Article V (c), any of
whom may file, if he so desires, revisions of his methods of pricing,
which shall become effective upon the date when the revised method
of pricing first filed shall go into effect.1
(b) If and when a Group Code Authority or Code Authority
shall determine that in any branch or group of the Subdivision not
now selling its products on the basis of price lists, with or without
discount sheets, with terms of sale and payment, the distribution or
marketing conditions in 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 with-
out discount sheets, is well recognized, and that a system of selling
on net price lists, or price lists with discount sheets and terms of sale
1 See paragraph 2 of order approving this Code.
and payment, should be put into effect in such branch or group,
then each manufacturer of the product or products of such branch
or group shall, within twenty (20) days after notice of such deter-
mination, file with Group Code Authority or Code Authority net
price lists or price lists with discount .sheets with terms of sale and
payment, showing his method of pricing, and such method of pric-
ing may be thereafter revised in the manner hereinabove provided.
Provided that Group Code Authority or Code Authority shall make
no determination to place any product of the Subdivision (not now
on a price list basis) on a price list basis, as provided in this para-
graph (b) of Article VIII, unless two-thirds of the employers co-
operating under this Supplemental Code as describedd in Article V
(c), who are at that time engaged in manufacturing such product,
shall affirmatively consent that such determination be made.
(c) No employer shall sell directly or indirectly, by any means
whatsoever, any product of this Subdivision at a price or at dis-
counts or on terms of sale and payment different from those provided
in'his own current method of pricing and terms of sale and pay-
ment, as covered( by the provisions of this Article VIII and pro-
ARTICLE IX-TRADE PRACTICES
Each of the following acts and practices is deemed to be inim-
ical to the best interests of the Subdivision and of the public, and
each is, therefore, hereby declared to be, and to constitute, an unfair
method of competition, viz:
(1) Inaccurate adJertl'silng.-No employer shall publish adver-
tising (whether printed, radio, display or of any other nature),
which is misleading or inaccurate in any material particular, nor
shall any employer in any way misrepresent any goods (including
but without limitation, its use, trademark, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content or
preparation) or credit terms, values, policies, services, or the nature
or form of the business conducted.
(2) False Billing.-No employer shall knowingly withhold from
or insert in any quotation or invoice any statement that makes it
inaccurate in any material particular.
(3) Inaccurate Labelllig.-No employer shall brand or mark or
pack any goods in any manner which is intended to or does deceive
or mislead purchasers with respect to the brand, grade, quality,
quantity, origin, size, substance, character, nature, finish, material
content or preparation of such goods.
(4) Defam.ation.-No employer shall defame a competitor by
falsely imputing to him dishonorable conduct, inability to perform
contracts, questionable credit standing, or by other false representa-
tion, or by falsely disparaging the grade or quality of his goods.
(5) Destructive Price Cutting.-No employer shall indulge in
destructive price cutting.
(6) Threats of Law Suits.-No employer shall publish or circulate
unjustified or unwarranted threats of legal proceedings which tend
to or have the effect of harassing competitors or intimidating their
(7) Secret Rebates.-No employer shall secretly offer or make any
payment or allowance of a rebate, refund, commission credit, un-
earned discount or excess allowance, whether in the form of money
or otherwise, nor shall an employer secretly offer or extend to any
customer any special service or privilege not extended to all custom-
ers of the same class, for the purpose of influencing a sale.
(8) Bribing Enmployees.-No employer shall give, permit to be
given, or offer to give, anything of value for the purpose of influenc-
ing or rewarding the action of any employee, agent, or representative
of another in relation to the business of the employer of such em-
ployee, the principal of such agent or the represented party, without
the knowledge of such employer, principal or party. This 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 hereinabove defined.
(9) Inducing Breach of Existing Contracts.-No employer shall
wilfully induce or attempt to induce the breach of existing commer-
cial contracts between competitors and their customers. by any false
or deceptive means, or interfere with or obstruct the performance
of any such contractual duties or services by any such means, with
the purpose and effect of hampering, injuring or embarrassing com-
petitors in their business.
(10) Procu.ring Confidential Informrat on.-No employer shall
procure, otherwise than with the consent of any other employer, any
information concerning the business of such other employer which is
properly regarded by such other employer as a trade secret or con-
fidential within his or its organization other than information relat-
ing to a violation of any provision of the Code.
(11) Disco'un.t.-No employer shall sell on the basis of a dollar
volume discount. This shall not prohibit quoting of quantity dis-
counts on published price list.
(12) Consignments.-No employer shall consign any product to
anyone or any class of trade, except in trading areas where existing
competing stocks are now maintained by an employer; provided,
however, that. the following practices are permitted:
(a) The transfer of an existing consignment from one consignee
to another consignee in the same trading area;
(b) The conversion of a bona fide sale into a consignment for the
purpose of protecting the seller when the purchaser is financially
(c) The conducting of field tests or demonstrations of newly
designed product. or of a new application of a product by any em-
ployer, without compensation.
(13) GuarantieRi.-No employer shall guarantee any pl'oduLct, be-
yond the guaranty as specified in the terms and conditions of sale
on file with the Code Authority and in effect at the time of the sale
of such product; this does not apply to performance or capacity
ARTICLE X-SALES FOR EXPORT
The provisions of this Supplemental Code concerning pricing and
marketing shall not apply to direct export sales of any product,
or to sales of any product destined ultimately for export. The term
UNIVERSITY OF FLORIDA
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14 3 1262 08583 0320
" export" shall include all shipments to all places without the several
states of the United States and the District of Columbiai provided,
however, that no shipment to any territory or possession of the
United States shall be considered as export when any employer is
engaged in the Subdivision in such territory or possession.
(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) As study of the needs of the Subdivision is continued after
the effective date, amendments, additions, or revisions to this Sup-
plemental Code may be proposed, which, upon being assented to in
writing by two-thirds vote of employers co-operating under this
Supplemental Code, shall be in full force and effect from and after
approval thereof by the President.
Upon thirty days notice to the Basic Code Authority and to the
Administrator, this Subdivision may, upon the concurring affirma-
tive vote of employers within the said Subdivision entitled to cast
two-thirds or more of all the votes that might be cast by all employers
within the subdivision entitled to vote thereon, withdraw from the
jurisdiction of the Basic Code Authority. The eligibility of voters
and the method and effect of such voting shall be in accordance with
the provisions of Article V hereof. After and in the event such
withdrawal is accomplished, this Supplemental Code, together with
the provisions of the Code, shall become and be the sole code gov-
erning this Subdivision, and the Code Authority shall, for this Sub-
division, become and be the sole Code Authority and shall perform
all the functions with respect thereto.
Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemental Code presented by it is not
designed to promote monopoly, and shall not be so construed or ap-
plied as to oppress or eliminate small enterprises or discriminate
against them, and is designed to effectuate the policy of the Act.
ARTICLE XIV-EFFECTIVE DATE
This Supplemental Code shall become effective and binding on all
employers in the Subdivision on the eleventh day after its approval.
Approved Code No. 347--Supplement No. 25.
Registry No. 1399-63.