Proposed code of fair competition for the silo manufacturing industry as submitted on August 30, 1933


Material Information

Proposed code of fair competition for the silo manufacturing industry as submitted on August 30, 1933
Portion of title:
Silo manufacturing industry
Physical Description:
10 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Silos -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1637A-07."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930429
oclc - 643553848
System ID:

Full Text

Registry No. 1837A--07





For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents


TI~VI~ llL~ilo Manufacturing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery A-dministration
as applying to this industry








To the end that the Silo industry mayS dlo its part in Niational eco-
nomic recovery~, this Codle is set up for the purploise of reemploying
labor at. fair and adequate w~ages, reducing and relieving unemploy-
ment, reducing labor hours, andi improving conditions in order to
eliminate uneconomic anl unifair competitive practices, destructive
to the interests of the public, t~he employees, and the employers, to
the end of rehabilitating the Silo industry and enabling it to do its
part toward establishing r~estornt~ion and maintenance of the highest
practical degree of public welfare.
The National Silo Mafnufa~cturers Associationl is the broadened
outgrowth nec~essaryl under the National Recovery Act of its imme-
diate predlec~essor, th~e National Silo Resear~ch Council, and others,
which have haid a continuous existence over the past 21 years as the
organlized National voice of the Silo trade in this country.
Of such vital import to th~e economics~ welfa~e. of the Nation was the
conservation of food dur~ing th~e late WVorld WVar that the Silo indus-
t.ry was exemptedl by Fedleral act and license in order to save, handle,
store, and pr~eserve our fornage, food crop ha~rvest. The activities of
t~his consolidatedl tradle association have touched upon all phases of
this industry. These netivities have included engrineerijng and eco-
nomic research of gr~eat benefit. to allied industries at large and par-
t~icularly to th~e co~nsuminga public. No initiation fee has -been
charged, and all1 Silo mannufactur~ers have at. all times been invited to
become affiliated with the Tradle Associaition of their industry.
In the foirm in which it is finally approved by the Presiten~t of thne
Ulnitedl States this Code of Fair C~ompetition will become mandatory
upon the Silo and;'or Silo equipment industry throughout the United
Memlbership.-Membmersh ip in the National Silo Manufacturers
Association is and shall be open to any person engaged in the Silo
and or Silo equipment industry. Each and every person, member,
and /or nonmember of this Association shall be bound by the pro-
visions of this Codle and the rules and regulations sued thereunder
aznd shall be compelled to adhere to such penalties as may;3 be pre-
scribedl by this Code or by thle law. No inequlitable r~estrictions on
admission to members are or mnay be imposed by this Association.

ARTICLE 1. (1) "L Silo Manufacturer means any person regularly
conducting the business of manufacturing, selling, and/or building
Silos and/'or Silo equipment. such as is used primarily for Silos, and
for handling the contents for storage therein.
9116--33 11\

(2) Silo means any subterraneous or tower tyvpe container of
whatsoever construction or materials intended for the purpose of
storing and/~or handling forage crops, grain, solid fuels, aggregates,
bulk materials, etc.

AiRr. 2. Enfolremilenlt.-The administration officer of this Code
shall be the Executive Secretary of thie National M\1anufacturers As-
sociation. He shall be required to submlit and to explain the pro-
visions, _purposes, and aims of the Code to all producers of Silos
and/'or Sjilo equipment, including members and nonmembers of this
Any producer of Silos and/or Silo equipment injured by the vio-
lation of this Code shall file with thie Executive Secretary a written
complaint setting forth the facts in the matter and requesting such
relief ais mnay be Just.
SThe Executive Secret~aryv of the National Silo Mlanufacturers Asso-
ciati~on is authorized and directed to enforce vigorously, equitably,
andl without exception a system of discipline for violators of this
Code or any of its rules, regulations, or provisions, as follows:
A fine against. violators, in cases where the violation involves a
sale of Scilos and/or Silo equipment., of an amount not to exceed 50
percent of the established price of t~he equipment sold.
A fine against violators, where the sale of Silos and/or Silo equip-
mnent may not be involved, of an amount not to exceed five hundred
dollars ($500.00).
The Executive Secretary may use his discretion, as circumstances
warrant, in substituting an arbitrary fine for the percentage of sale
Violation of anyT or all rules of the: Code may be considered a
separate offense for each and every dlay such rules are violated.
I~f found necessary to the welfare of the industry or in support of
the proper administration of this Code, the Executive Secretary may
give full publicity to t~he facts regarding any violation by any per-
son of any rule or regulation of this Code, and the hearing and
determninationn t hereon, w it.hout anyu liability for libel arising
t~herIe fro'm.
A~ny fines assessedt and collected shall be turned into the Associa-
tiol TrealZsuryV. SuchT money shall bel avalable for award~incr fnancial
damagres to mnember (or members) injured by~ violations. Fines col-
lectedl andl not so used shall be applied to the Association's operating
Any member of the National Silo Mannufacturers Atssociation or
any p~rodtucer of Silos and/or Silo equipment whio is not a member
of the Associationl shall have thei r~ighit. to appeal from the ruling
or decisions of the Executive Secretary, and such appeal shall be
heard by a r~epresentative. Arbitration Commrittee of at least three
pers~oni, suchr committee to be appointed by the Executive Committee
of the National Silo M~anufacturer~s Association from the organiza-
tjion~s of different members of thle industry. Under this provision
a separate" A~rbitration Committee shall be named to handle each
appeal, and the membership of such committee shall be truly repre-
sentativeP for the? puirpoe of insuiring the parties a fair hearing,

but shall not include any members of the industry connected with
or in any way involved in the dispute in question.
The decision of such Arbitr~ation Comnmittees may bre appealed
by either party to the Association as a whole, anid t~he decision of
the Association shall be final and binding. If such Association
decision is not accepted and complied with by the complainant or
defendant the case shall be turned over to the Executive Committee
of the industry for submission to the Adlministrator of the National
Industrial Rec~overy Act.
Divisions.e-For the: purpose of the administration of this Code the
Country is divided into four divisions as set fourth btelow:
(a) Atlantic Diivision-includingr New Y-ork, PenlnslvaRnnia Iela-
ware, Newr Jersey, all of the N~ew England States, Mjarylandl, Vir-
ginia, Nort~h Car~olina, South Carolina, Georgia, and Florida.
(b) Cenetral Divisionz-includin g Ohio, W~est V'irginria, M~ichigan,
I~llinois, Indliana, Kentucky,? Tennessee, Alabama, and1- Mississippi.
(c)Nlorthwes~tern Dlivisi;on-including W~isconsin, Mlinnesota, Iowa,
Nebraska. South Dukota, North Dakota, Wyr~oming, Montana, Wiash-
ington, Or~egon, andl Idaho.
(dl) 1Soutketern.~jf~i~z D~ivisio-n--incl ud i ngr Kansas, RIlissou r~i Okla-
homa, Arkansas, Texas, Louisinna, Colorado, New Mlexico, Califor-
nia, NSevada, Utsh, and Arizona.
The Executiv-e C'ommnittee my change or modify the boundary
lines between divisions as conditions mnay demand from time to time.
Pa:rticipoation..-Pa rtici pa tion i n t his Code, and any subsequent
revision of or addition to th~e Code, shall be extended to any person,
partnership, or corporation in t~he Silo and/.or Silo equripmlenlt indus-
try who accepts his share of the cost and responsibility, as well as
the benefit of such participation by becomninga a member of the
National Silo Mfanufactur~ers Association.
No initiation or entrance fee shall be charged for membership in
the National Silo Mannufactur~ers Association, but there shall be
levied against all members of the Association annual dues in the
amount. of twenty-five dollars ($45.00). Addlitional dues needed to
finance t~he activities of the Association in carryingr out and enforcing
the Code of t~he industry shall be levied on an equitable basis aIgainst
each member in proportion to the volumie of its sales of the items
covered by this Code.
Statistics a~nd Repocrts.--The Executive Secret~ary shall have the
power and authority to require from eachi manufacturer of Silos
and/or Silo equipment from time to time such wage and labor
reports, information, and records as shall be :necessaryT to the ade-
quate administration a~nd enforcement of the provisions of this Code.
The Executive Secretary shall have the right at all times to
examine all records of every producer of Silos aind/or Silo eqmip-
ment, w~henever such inspection is necessary for thle adequate admiin-
istration and enforcement of the provisions of this Cod'e. -It is
definitely agreed that any such information obtained by such inspec-
tion shall be of a strictly confidential nature, except insofar as
disclosure of thle facts so obtained may be necessary to the just
administration of this Code.


ART. 3. (1) As required by Title I, Section 7 (a) of the National
Industrial Recovery Act, it is agreed:
(a) That employees shall have the right to organize and bargain
collectively through representatives o~f their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives, or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union
or tor refranin from oinmnig, orgammzing, or assistmng a labor orgami-
zation of his own choosing; and
(c) That em~ployers shall comply with the maximum hours of
labor, minimum rates of payv, and other conditions of employment,
approved or prescribed by the President.
(d') It is clearly understood that nothing in this Code shall im-
pair in any particular, rights of the employee and employer to bar-
gain individually or collectively as may be mutually satisfactory to
(e) Noth~ing in this Code is t~o impair the rights of employers to
freedom in the selection, retention, and advancement of employees,
on t~he basis of merit.
(f) Nothling in this Code is to prevent the selection, retention,
and advancement of employees on the basis of their individual merit,
as determined by employer, without regard to their affliation or
nonaffilia~tion with any Inbor organization.
(g) It is expressly stipulated that neither any provision of this
Cod-e nor the fact or manner of its preparation, presentation, adop-
tion, or filing shall be construed as constituting a waiver of any
constitutional right which the several members of the National
Sijlo MaInufactur~ers Associat~ion or industry might otherwise have
andc enjoy. Any~ such provision which mlay limit or abrogate any
constitutional right is inserted under the unavoidable requirements
of the National Industrial Recovery Act as the same is understood
byF said members and not voluntarily nor with their approval as a
contractual replinquisihme~nt of such right.
(2) No person under 16j years of age shall be employed.
(3) (a) Maxnimlum~ HourI of Lalbor.-Maximul m hours of labor of
employees subject to t~he jurisdiction of this Code, shall be exclu-
sive of executives, administrative, and supervisory staff and assist-
ants, salesmnen, field collectors, engineers, and watch~men.
(b) On account. of the extreme seasonal character, causing abrupt
and violent fluctuations in volume of business from day to day in
the Silo atnd,/or Silo equipment industry, during the impracticable
condition of the rush season manufacture of Silos for perishable
food crops which wvou~ld cause great and unavoidable hardship unless
relief from this unusual andi temporary burden is granted, it is pro-
posed that some reasonable latitude may be provided for in maxi-
mum hour provisions in this Code. It is, therefore, agreed that the
number of hours of work per week for any employee, other than ex-
clusions as herein provided for, may be averaged over two six-mnonth

periods--February to July inclusive, and August to January inclu-
sive, at 40 hours', provided, howeer, that no employee sha~ll work
more than 1,000 hours per six-month's period, or 48 hours per week,
or 8 hours per day.
(c) Field Service.--Because of the incontrovertible fact that. a
part of the volume of the Agricultural Silo and/or Silo equipmrient
industry is agricultural service requiring much assembly-construe-
tion-erection service at final destination, t~o save and store perishable
food crops, which we will designate here as F'ieldl Service in con-
junction with the owner andr or his Agricultural Labor assistingr-
this service usually requiring board, bed, andl living with the famly,
offset byr workingr the samne hours as such Agricultural Labor--and
further, Agr~icultural Labor being exempt from the labor pr~ovisionls
of the N.R.A.--it will be an impossible barrier severely penalizing
Agriculture and this industry unless su~ch Field Service operautions.
be considered entirely separate from and independent of factory,
office, and.'or plant operations. WVithout exemption, or classification
equal to Agricultural Labor, it will immediately create great and un-
a~voidable hardsh~ip, forcingr a large portion ofl this industry out of
business. Therefore, it is submitted and proposed that suchn ]Field
Service labor be exempt and classified the same as Agricultural~
Labor during andt for thle period only whenl such labor is performed
other than at the manu fact~uring plant locations of the industry. Thle
minimum wages, however, for labor involved in such Field Service,
regardless of where performed, shall conform to Mlinimlumn Wagfes
of this Code less one dollar ($1.00) per day allowance for board
and lodging furnished on such Ar~icultural Silo and/or Sile
equipment jobs.

ART. 4.--The ninimniu wages which shalnl be paid by persons in
this industry subject to thec jur~isdliction of thiis Cclde, shall be not less
thain 354 p'ier hiour. It, is agreed that this paragranph establishes a
guaranteed minimium rate of pay r~egardless of whether the employee
is compensated on thle basis of a time rate or on a piecework per-
formance. Piecewor~k rates shall be ra~ted so that an employee can
earn not less than thle minimum rante per hour provided he works
at a reasonably efficient gait. as has been customir~y, in the respective
establishments of thte industry. Any employer in this industry lo-
cated in a section of the country wFher~e a lower minimum wage rate
has beeni prescribed andl neceptedl by t~he Pr'e-identt of the Uniited
States in thle code of another indlustry for employees in the same
crafts or classifications of labor emnplo!ed in this industry shall have
the right to employ such crafts or classifications of labor at such
lowe r rate.
It is understood that Junior employees, learners, and apprentices
shall be excepted from the, provisions of this Code for a period of 90
day's fr~om date of their employment, and shall be paid not less thian
75 percent of the above minimum, anld this shall not recpr~esent more
than 10 percent of the total pay roll.
Ana. 5.--It shall be unfair competition for any producer of Silos
and/or Silo equipment to sell his product below his own, gross cost:

plus 5ro net profit--or belowv the average "' mode cost plus 5%0 net
Thle cost of goods sold, as mentioned in the preceding paragraph,
shall include not only all direct material and normal direct labor
costs entering into the article in question, but also a proportionate
share of all normal indirect costs of the productive process, including
management, maintenance, operating, and other overhead expenses
of bothi factory and shipping departments plus a proportionate share
of the normal administrative, advertising, and selling expense of
thle business.
Unzif'o~rm. Term~ns of S~ale.--All contracts of sale shall be in writing
and shiall contain a deftinite statement of specifications, price, quan-
tityS, terms of payment, time andi place of delivery, and all other
items necessary to form a complete undlerstaniding. Time purchases
shall require a mninimnum down payment of not less than one third
of the F.O.B fatoryv sales price! on delivery or before the first of
November of thie current sales year-and shall take an added stand-
ardr mark-upn finance charge of nIot less tha7n five percent over cash
price, w~ithi interest at not less than six percent from at least the first
day of Alug:ut-aRnd/,or on deliveries after July 1st., from at. least, the
firsHt day of the second month following date of shipment. Definite
Standardl terms of sale as published shall be adhered to, and the vio-
Intion of such publishied terms by a person in this industry is a viola-
tion of this Codle.
Slfftablizatlonl.--Reasonable published sales prices shall be F.O.B.
factory, with transportation to destination, and anyr tax and/or
surcharge imposed by any present or future law, Federal, State, or
any other Government. agency added as a separate item to be paid by
the pulrchaser. Freight equalization zones for each division shaUl
be prescribedl and strictly adhered to. Truck shipments shall take
same equalization rates as railroad freight rates. In each divisional
region or zone the Exeentive Secretary shall formulate plans for
the det~erminationn ofi fair and reasonable costs, and all persons sell-
ing their products in such region shall adhere to such plans. Any
plans agreed upon in such division shall give due consideration to
the average cost.


Ana. 6. (1) Secret RebalteS.-No person in this industry shall
make a secret. prepayment of transportation charges or permit the
payment or allowance of secret rebates, so-called agency allowances
to the purchaser, refunds, credits, or unearned discounts, whether
in the form of moneyr or otherwise, or the giving of premiums, or
extending to certain purchasers or institutions special prices, service,
or privilege not extended to all purchasers.
(2) Interfer~ence in, Contracta.--No person in this industry shanl
willfully interfere by any means or device whatsoever, in any exist-
ing contract or order between a seller and a purchaser, or sale of
any product hlandledl by the industry, or the performance of any
contractual duty or service connected therewith, such interference
tending to cause the breach of an existing contract or order and
being for the purpose or with the effect of dissipating, destroying,

or appropriating, in whole or in part, the patronage, property, or
business of another engaged in this industry.
(3) Defam)ation, of Compeyttitor.--No person in this industry shall
defame a competitor byl wordt s orI acts, fa~lsely impiluting to hintr
dlishonorable conduct., inability to perform contracts or quiestion-
able credit standing, or by the false disparagemuent of the grade or
quality of his material.
(4) Coif'ormnity wcith Spiecititfeatio Reqsuiremzen~ts.-NPio person.
engaged in this industry shall sell or offers for sale any~ product of
the industry w~it.h intent to deceive customers, or prospective cus-
tomers, as to the quality, quantity, size, grade, or substance of eachi
(5) Mi.sbr~anding.-No person in this industry shall mark. or brandc
products of t.he in~dustry for the purpose or with the effect of mis--
leading or deceiv-inga pulrchas~ers with respect, to thre qlulity~, identity,,
quantity, size, gradee? or substance of: the materials purchased.
(6) Pu~rchaseri C'omm~niss.ion. Subtfjerfuge.-N~o person in this indlus-
try sh~all makce or promise to any' purchaser or prospective purchaser,
or to any officer, employee, agent, or representative of any pur-
chaser or prospective purchaser, any commission, consideration,
gratuity, or other payment, or remuneration, directly or indirectly,
for the purpose of inducing or compensating for a sale.
This provision shlall not apply to any Code membel~cr selling at.
standard open dealers9 discount to qlualified dealer-ugre ncies~; so qyuali-
fled by having actually sold on bona fide dealer-agency contracts tw~o
or more Silos and. or Silo eq~ipmellnt and whose names have been
listed as such withl the Exec~utie Steretary~ at least 90 days previous
to the date of such sale (waivinga the 90-dany clause for those regis--
tered during the first 30r day~s only after approval of this Cod~e).
(7i) Commericicu ia r~iber.--No person in this industry shall offer
or give commissions, prizes, premiums, gifts, or excessive entertain-
ment as an act of commler~ciall bribery to any one in connllectionl with
the sale, pur~chlase, or use of his products, or as an indluclemnent
(83) Eniticilenwn! of Emp~loylees.--No person in this industry~ shaill'
unfairly solicit, the serv\icesj of emplloyees, agents, or deanlers fromt
a competitor nor interfere with a comupetitor's business through the-
enticemnent of his employees.
(9) MVisreY)fprEsentaion1.--No person1 in this industry shall misrep--
resent. the capacity~ of n Silo, the feedlingr value of ens~ilage or forag~e
crops, nor mn;isquot feedIngI~ tests mallde by either station-s or users,
nor misrepresent a comipetitoir's product.
('10) Friaud andz~ Mkeezr-pr'e~scnftatioin .-No person in thlis industry
shall make! cause, or permiiit to be mlade or p~ublishedil, any ale
untrue, or deceptive statement by way of photo gra ph, fadrtse-
mlenlt, or otherwise concerning* grade. qiualit~y, charne~iter, untur~e,
origini, manufacture, or praparation of products of a com~petitor..
(11) Patentsf, Tr'aJ1II'.demrk, anld TraCde Names.--No person in this:
industry~ shall imitate the trade marks or trade names of a comnpet itori
which results in deception to buyers andi~ consumerrs, which may be an
invasion of proper~ty rights of such competitor. Tjhe circulation of:
threats of suits for infringement of patent or trade markJ amnong
customers of a competitor, nor made in good faith, for the purpose-

of harassing and intimidating customers, is an unfair trade practice.
( 12) G;ualnrantee-M;lisrepresen tat ion..-No person i n this Industry
shall make any statement., either oral, written, or printed, for the
purpose of having the effect of misleading or deceiving purchasers
with respect to t~he quality, grade, longevity, brand, or substance of
the goods purchased. Built-in quality is its own best guarantee.
Long contingent guarantees not backed by adequate resources are
(13) En~forcing Obser~vance by Distfribuztorls and Agenlts.--No per-
son in this industry shall permit his products to be handled by a
middleman or agent standing between producer and consumer who
violates any of the provisions under Articles 5 and 6 of this Code of
Fair Competition.
(14~) Open. Price Lists.--Every manufacturer or producer of farm
Silos shall at all times keep on file with the Exrecut.ive Secretary
copies of all his published price lists. Any producer making changes
in his prices or contemnplating the issuance of new prices shall, asa
matter of information to the industry, give the Executive Secretary
notice. of such change or changes. Where revisions are upward, the
pmroducer making such change shall in no ease notify his selling
organization or the trade of such change or changes until after he has
notified the Executive Secretary. Where the price revisions are
downw~ard, notice shall be given the Executive Secretary not less
than. two weeks before the dlates on whlich t~he new prices are to be-
comie effective. If the Executive Secretary deems it necessary to
have additional price lists, thle members of ihis Association agree to
furnishi same.
(1_5) Tradet~-ins.--No pelrson in this industry shall accept real
property, livestock, or other commodities, either as part or full pay-
mIlent, to induce or cause a Silo and 'or Silo equipment sale, except
tha~t Silos andl/or Silo equipment only may be accepted as part pay-
ment on a sale provided that the manximnum amount allowed for such
trade-in is in nlo case in excess of 20%~ of the then current published
sale price of the same size and type of Silo and./?or Silo equipment,
and in no case in excess of $50.00. It is further provided that each
regional division by a majority vote may submit modifications of
this schedule which when approved by the Executive Committee
shall become operative for that division. Such trade-in allowance
must. anppea in writ~ing on all such contracts of sale.


AIRr. 7. (1) In order to increase knowledge of the properties of
materials and products of the industry and for the purpose of pre-
venting waste, improving storage, andt preservinga qualities and
broadening the field of endeavor with resulting benefit to the public,
this industry mnay, insofar as practicable, continue to engage in:
(a Research into the properties of thie materials.
(b ~Resear~ch into mnethodls of production.
(0 Research into methods of use.
( Cooperat~ion with Governmental and other agencies in their
research work along these lines.

(e) Supervision or assistance in planning for the purpose of pro-
moting stabilization of this industry and avoiding undue economic
fluctuations within.
(f) Such other investigations of a helpful nature, together with
educational publicity, as may be desirable.

ART. Q. (1) NO provision in this Code shall be interpreted or
implied in such a manner as to--
(a) Promote monopolies;
(b) Per~mit or encourage unfair competition;
(c) Eliminate or oppress small enterprises; or
(d) Discriminate against small enterprises.
(2) This Code or any of its provisions may be canceled or Inodi-
fled by two thirds vote of the members of this Associat~ion, and any
approved rules issued thereunder shall be in effect to any extent
upon due conformity to any action of the President, under DIB of the
National Industrial Recovery Alct.
(3) Amendmlents to this Cod~e may be initiated or' proposed to the
Silo Admlinist~rative Officers by any member., and when approved by
a two-thirds vote of the members of the Association shall be effec-
tive subject, to thle app~roval by the Pr~esident. of t.he Unitedl States.
(4) Supplemental Code provisions wThich miay b~e d~esilrable to meet
peculiar conditions arising in any of the several territorial divisions
may be filed with the Silo Ad~ministrator and, if not inconsistent
with the provisions of this Cod~e, mnay be recommlnended by it to the
Administrator. When approved by the A~dminlistrator, such supple-
ments shall have the same source and effect as any other pr~ovisions
of this Code.
(5) Violations.--Any act that is deemied to be an unfair trade
practice shall be considered as a violations of this C'odet and of the
rules and regulations attached h~ereto and the act under which the
Code is authorized. Violation by any p~erson subject to anly provi-
sions of this Code, or of any approved Code issued thereunder, or of
any agreement entered into by him under this Code, is an unfair
method of competition and the offender shall be subject to the
penalties imposed by this Code.

ART.9. (1) WTe agree that, because existing productive capacity
far exceeds the normal demand, for a period of 12 months from the
effective date of this Code, not to increase our prodluctive capacity
except insofar as it might be normally increased through the sub-
stitution of new and improved equipment for existing equipment or
through more efficient methods of manufacture.
(2) Note.--In view of the foregoing agreement. we specifcically ask
that the Administ~rator establish a rule which will make it necessary
for any concern desiring to undertake the manufacture: of Silos
and/or Silo equipment to shiow a. necessity for such increase in pro-
ductive capacity or that the product he intends to manufacture will


10 3 1262 08728 6158
better serve the public interest than such products as are now
(3) Antidurop~inlg.-To prevent, dumping from sources outside ofE
the industry as well as within, which has been so prevalent during the-
past few yFears, any producer or dealer in the commodities sold pri-
marily by this industry or any person in this industry shall not sell.
such materials below the "L mode cost established and prevailing in,
the region, or subdivision thereof, where delivery is made.


A~ny complaint, difference, controversy, or question of fair competi-
tion which mlay a rise between a member of this trade and a member of'
any other industry or trade under or out of this Code or a Code of'
Fair Comlpetition adopted by such other industry, or any question
:involving a conflict between provisions of this Code and of any other
Code affectingg this industry, shall be submitted to arbitration under
the rules of the American Arbitration Association.


If any provision of this Code is declared invalid or unenforceable,
t.he remaining provisions shall remain in full force and effect the
same as if they had been separately presented for approval by the
This Code shall be in effect beginning the second Monday after its.
approval by the President of the United States and shall remain in
e effect until December 31, 1934, unless and until' modified or revoked ,
and until the expiration of the National Industrial Recoveryr Act.