Citation
Supplementary code of fair competition for the pulverizing machinery and equipment industry (a division of the machinery and allied products industry) as approved on June 9, 1934

Material Information

Title:
Supplementary code of fair competition for the pulverizing machinery and equipment industry (a division of the machinery and allied products industry) as approved on June 9, 1934
Portion of title:
Pulverizing machinery and equipment industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
14 p. : ; 24 cm.

Subjects

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

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1399-46."
General Note:
"Approved Code No. 347--Supplement No. 15."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004938258 ( ALEPH )
649700070 ( OCLC )

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L


WE DO OUR PART

UNIV. OF '7 L;IL,


..0


U.S. DEpPOTOFP'.


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


Ber ale by the Superintendent of Documents, Washington, D.C .. Price 5 cents


. 4


ApJBH & Code No. 347--Supplement No. 15


NATIONAL RECOVERY ADMINISTRATION




SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE


PULVERIZING MACHINERY

AND EQUIPMENT INDUSTRY

(A Division of the Machinery and Allied Products Industry)


AS APPROVED ON JUNE 9.1934


Registry No. 1399--46


' \ *


SI























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
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Birmingham. Ala.: 257 Federal Building.
Boston, Mass.: 1S01 Customhouse.
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Charleston, S.C.: Chamber of Commerce Building.
Chicago, II.: 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.
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Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mlo.: 1028 Baltimore Avenue.
Los Angeles. Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
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Minneapolis, Minn.: 213 Federal Building.
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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.: 'q15 New Post Office Building.
St. Louis. Mo.: 50t; Olive Street
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: S09 Federal Office Building.











Approved Code No. 347.-Supplement No. 15


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE

PULVERIZING MACHINERY AND EQUIPMENT
INDUSTRY

As Approved on June 9, 1934


ORDER
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PULVERIZING
MACHINERY AND EQUIPMENT INDUSTRY

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 Pulverizing Machinery and
Equipment Subdivision of Machinery and Allied Products Indus-
try, 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 Industral 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 an-
nexed report and do find that said Supplemental Code complies in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that
said Supplemental Code of Fair Competition be and it is hereby
approved subject to the following conditions:
(1) That the provisions of 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 Supple-
mental 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.
(2) That the provisions of the second paragraph of Article VIII,
Section (d) be and they hereby are stayed pending the submission
of satisfactory evidence concerning distribution of the products of
the Subdivision to the Administrator.







(3) That the provisions of Article IX, Sections 5 to 10 inclu-
sive; be and they hereby are stayed for a period of fifteen (15)
days; then to become effective unless I, by my further order other-
wise direct; within which time cause may be shown, if any there be,
why the above provisions should not become effective; and that the
Temporary Code Authority send notice of the stay of these provi-
sions and of the opportunity to show cause why they should not
become effective to all known employers of the Subdivision.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
A. R. GLANCY,
Division. Adr.inistrat or.
WASHINGTON, D.C.,
Ju-ne 9, 1934.












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
Sm: This report relates to the Supplemental Code of Fair Com-
petition for the Pulverizing Machinery and Equipment Subdivision
of Machinery and Allied Products Industry as proposed by the
Pulverizing Machinery and Equipment Association.
A public hearing was held in Washington, D.C. on December 4,
1933 and reconvened on December 21, 1933. The public hearings
were conducted in accordance with the provisions of Title I of the
National Industrial Recovery Act and all persons were given full
opportunity to be heard.

GENERAL STATEMENT
The Pulverizing Machinery and Equipment Subdivision, being
truly representative of the manufacturers of the products defined in
Article II of the Supplemental Code, has elected to formulate and
submit a Supplemental Code of Fair Competition as provided in the
second paragraph of Article I of the Code of Fair Competition for
the Machinery and Allied Products Industry, approved by you on
the seventeenth day of March, 1934.
The Subdivision as defined in the Supplemental Code includes the
design, manufacture, contracting for or subletting the manufacturing
for the sale of ball, tube, roller and attrition types of pulverizing
machines, air separators or classifiers of dry materials, and auxiliary
equipment including spare, repair, and replacement parts thereof,
and includes all those so engaged; provided that the Subdivision shall
not include fuel-pulverizing equipment or spare, repair or replace-
ment parts thereof. Employers otherwise engaged in the Farm
Equipment Industry may manufacture for sale and sell hammer
mills, feed grinders and similar equipment for use on farms, under
the Code of the Farm Equipment Industry and not under the
provisions of this Code.

ECONOMIC EFFECT
Annual sales in 1932, according to the Association, were approxi-
mately 84 per cent below the 1929 level. They declined from
$5,448,000 in 1929, to $864,000 in 1932. Sales as reported for the
first six months of 1933 are 69.1 per cent of the total sales for 1932.
This may represent an upward trend in business provided sales are
not seasonal. Invested capital declined approximately 15 per cent
since the peak year, 1930, while the production capacity has remained
constant.








Estimates of approximate employment for the entire industry sub-
mitted by the trade association, indicate that employment had de-
clined from 630 in 1929 to 215 in 1933, or 65.9 per cent.
Average hours per week were reported to be 46.8 in June, 1929;
30.6 in June, 1933; and 35.0 in October, 1933. In October, 1933,
the average hours were 25 per cent less than the June, 1929 average.
The effect of the 40-hour provision with production at more nor-
mal levels may be estimated on a basis of the 1930-1931 average of
total man-hours per week divided by the number of hours prescribed
in the Code. After 1929, man-hours declined steadily from 29,484 to
a minimum of 8,017 in 1933 (first six months), or approximately
72.8 per cent. Since then, man-hours increased to 14,105, or 75.9
per cent.
If it is assumed that the 18,300 average man-hours for 1930-1931
are representative of the volume of production for those years, and
a reasonable measure of man-hour requirements in a more normal
period, the adoption of the 40-hour week would require a. force of
approximately 460 employees, or 73.0 per cent of the 1929 working
level.
However, considering all employees of the Subdivision would not
work the full 40-hour week, the average work week would be shorter;
with 36 assumed effective hours, and employment correspondingly
greater, viz., 510 workers will be required to produce the 1930-1931
volume.
The minimum wage provisions proposed for the Subdivisions
which are operating under the Code of the Machinery and Allied
Products Industry are based on a flat minimum hourly rate of 32
cents per hour for the South and the following city population dif-
ferentials for all other sections of the United States: Over 50,000
population, 40 cents per hour; Over 10,000 to 50,000 population, 38
cents per hour; 10,000 population and under, 36 cents per hour.
In addition to the minimum wage rates shown above, the Code
provides that women engaged in substantially the same work as
men shall receive the same rate of pay as such men employees; that
the minimum wage for women employees engaged in plant opera-
tions shall be not less than 87.5 per cent of the proper rate for the
locality in which employed as specified; and that the minimum in the
South shall be not less than 32 cents per hour.

Estimated number of factory workers receiving less than designated hourly
rates

Distribution of factory
workers receiving less
than the minimum
regardless of location
Proposed minimum hourly rates
Approxi- Approxi-
mate per- mate num-
cent ber

40 cents (other U.S.) .....----------................----------------------- 12.0 18
38 cents other U.S I..--.---...--- ---.--.. .. -------........................ 8.5 12
36 cents (other U.S.). ..----..-- ----. ------------------ ------- ------------ 4.8 7
32cents (south) .....-- ..-----------. ------..----------------------------... 2.1 8







Based on the distribution as of June 15, 1933 and on the specified
percentages of the number of factory workers receiving less than the
designated rates shown in the above table, the adoption of the pro-
posed minimum rates will probably cause an increase in factory pay-
rolls. The estimated increase as of June 15, 1933, regardless of
location of the workers, will probably, under the most fovorable
conditions, not exceed 1.5 per cent, assuming only upward adjust-
ment in the brackets below the 40-cent minimum and no change in
man-hour requirements.
Distribution of the number of factory workers receiving classified
rates in the specified areas are not available. Consequently, it is
only possible to estimate the approximate number of factory work-
ers who will receive the benefit of the proposed minimum hourly
rates, regardless of location, on the basis of the number of factory
workers receiving less than the designated hourly rates as of June
15, 1933.
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 provi-
sions of the National Industrial Recovery Code of the Machinery
and Allied Products Industry, as approved by you, and as from time
to time amended.
Article IV provides for the adoption of Articles II, VI, VIII, and
IX of the National Industrial Recovery Code of the Machinery and
Allied Products Industry, in accordance with the conditions of this
Article governing their adoption.
Article V provides for the establishment of a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and/or estimating.
Article VII provides that no products of the Subdivision shall
be sold or exchanged below a reasonable cost when the Code Au-
thority determines that an emergency exists.
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 states that no provision of this Supplemental Code re-
lating to pricing and marketing shall apply to Export sales as
defined by the term Export" in this Article.
Article XI provides that 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
to the Administrator for approval.
Article XII. 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 enterprises.
Article XIII states the effective date of this Supplemental Code.







FINDINGS
Tbh Assistant Deputy Administrator in his final'report to me on
said Supplemental Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce 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 management under adequate governmental sanctions and super-
visions, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity o
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by 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 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 an industrial association truly representa-
tive of the aforesaid Subdivision; 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 discrim-
inate against them.
(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
Supplemental Code.
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication,
trade practices, and Article VIII, Section (e) are stayed, as stated
in the order.
Respectfully,
HUGH S. JOHNSON,
Adumnistrator.
Juxm 9, 1934.













SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE PULVERIZING MACHINERY AND EQUIPMENT
INDUSTRY

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY

ARTICLE I-PURPOSES
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the Pulverizing Machinery
and Equipment Subdivision of the Machinery and Allied Products
Industry and together with the Code of Fair Competition for the
Machinery and Allied Products Industry to which it is a Supple-
ment shall be the standard of fair competition for this Subdivision,
and shall be binding on each employer therein.

ARTICLE II-DEFINITION
"Applicant" means the Pulverizing Machinery and Equipment
Association, a trade organization, all members of which are engaged
in the manufacture for sale of the products of the Pulverizino
Machinery and Equipment Subdivision of the Machinery and Alliea
Products Industry, which organization is truly representative of
this Subdivision.
Industry means the Machinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the Presi-
dent, March 17, 1934 and as such definition may from time to time
be amended.
"Subdivision means the Pulverizing Machinery and Equipment
Subdivision of the Machinery and Allied Products Industry as de-
fined and set forth in Paragraph (22) of Article II of the Code of
Fair Competition for the Machinery and Allied Products Industry
as follows:
"Pulverizing Machinery and Equipment Subdivision, means the
design, manufacture, contracting for or subletting the manufacturing
for the sale of ball, tube, roller and attrition types of pulverizing ma-
chines, air separators or classifiers of dry materials, and auxiliary
equipment including spare, repair, and replacement parts thereof,
and includes all those so engaged; provided that the Subdivision shall
not include fuel-pulverizing equipment or spare, repair or replace-
ment parts thereof. Employers otherwise engaged in the Farm
Equipment Industry may manufacture for sale and sell hammer mills,
feed grinders and similar equipment for use on farms, under the code
of the Farm Equipment Industry and not under the provisions of
this Code."








Code means the Code of Fair Competition for the Machinery
and Allied Products Industry, as approved by the President, and
as from time to time amended.
Person" means a natural person, a partnership, 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.
Employee means any one who is employed in the Subdivision
by any such employer.
The Act" means Title I of the National Industrial Recovery
Act.
The President means the President of the United States.
"The Administrator" means the Administrator for Industrial
Recovery.
Basic Code Authority means the Code Authority for the
Machinery and Allied Products Industry as constituted 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 classification of products within this Subdivision, consti-
tuted under the authority of Article V of this Supplemental Code.
Publish means to make available to the public.
"Principles means all essential characteristics.

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 Code.

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 shall be ap-
plicable to this Supplemental Code as such or as it may hereafter be
administered as an autonomous Code; Article VIII, Modifications
and Termination "; Article IX, Withdrawal "; are hereby made a
part of this Supplemental Code with the same effect as if they were
written into this Supplemental Code.

ARTICLE V-ORGANIZATION AND ADMINISTRATION
To administer and supervise, and facilitate the performance of the
provisions of this Supplemental Code, there is hereby established a
" Code Authority ".
(a) The Code Authority for this Subdivision shall consist of
(1) The Executive Committee of the Pulverizing Machinery and
Equipment Association, consisting of not less than four and not more
than seven members.
(2) One additional member to be elected in any fair manner, with
the approval of the Administrator, by employers in this Subdivision
not members of the Applicant, who are cooperating in this Supple-







mental Code, as described in Section (e) hereof, if so desired, by such
non-members.
(3) The Administrator may, at his discretion appoint one addi-
tional member (without vote and without expense to the Sub-
division).
(b) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) submit
to the Administrator true copies of its articles of association, by-laws,
regulations, and any amendments when made thereto, together with
such other information as to membership, organization, and activi-
ties as the Administrator may deem necessary to effectuate the
purposes of the Act.
(c) In order that the Code Authority shall at all times be truly
representative of the Subdivision and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings 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 appro-
priate modification in the method of selection of the Code Authority,
or any'Group-Code Authority.
The Code Authority may adopt rules and regulations for its
procedure and employ such personnel as it may deem necessary.
(d) Any employer in this Subdivision shall be eligible for
membership in Pulverizing Machinery and Equipment Association.
(e) Any employer in this Subdivision shall be entitled to vote,
subject to the provisions of Section (a) hereof, at the election of, and
share in the benefits of the activities of the Code Authority and may
participate in any endeavors of the Code Authority, in the prepara-
tion of any revisions of, or additions or supplements to, this Supple-
mental Code, by paying his proper pro rata share of the reasonable
cost of creating and administering it., as determined by the Code
Authority, such vote of employers in this Subdivision to be deter-
mined subject to the provisions of Section (a) hereof, by a vote of
employers who are at that time engaged in manufacturing such prod-
uct, and are at that time cooperating in this Code, as above described
in this Section (e) of this Article V, cast concurrently in each of the
two following methods: (1) by one vote of each employer, (2) by
vote of employers weighted on the basis of one vote for each $25,000
of sales booked of such products of said employers who are at that
time engaged in manufacturing such products, made in the preceding
five calendar years, as reported to the Code Authority of this Subdi-
vision. Each employer shall be entitled to at least one such vote.
Except as otherwise provided in this code any action taken at any
meeting of employers shall be by a majority vote, cast and computed
in each of the two methods hereinabove provided.
(f) Employers in this Subdivision having a common interest and
common problems, may be grouped by Code Authority for adminis-
trative purposes into various Group Subdivisions, or product classi-
fications.
In each Group Subdivision, or product classification, there may be
a Group-Code Authority approved, or appointed, by Code Authority.
(g) If formal complaint is made to Code Authority, that provi-
sions of this Supplemental Code have been violated by any employer,







the Code Authority or proper Group-Code Authority, may cause
such investigation or audit to be made, to the extent permitted by the
Act, as may be deemed necessary. If such investigation is made by
Group-Code Authority, it shall report the results of such investiga-
tion or audit to Code Authority for action.
Unless Basic Code Authority shall take jurisdiction, the Code Au-
thority shall have the right to investigate to the extent permitted by
the Act, and analyze any transaction coming under the scope of this
Supplemental Code, on which any unfair competition is alleged, to
show evidence of any violation of this Supplemental Code, to report
any such alleged violation to the proper authorities for action.
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. Thereafter all employers shall determine
and/or estimate costs in accordance with the principles of such
methods.
ARTICLE VII-SELLING BELOW REASONABLE COST
(a) When the Code Authority has reason to believe that an emer-
gency exists as to any product or products of the Subdivision, and
that the cause thereof is destructive price-cutting such as to render
ineffective or seriously endanger the purposes or the maintenance
of the provisions of this Supplemental Code, the Code Authority
may cause an investigation of costs and pricing to be made by an
impartial agency in order to determine the existence of the emer-
gency and the Code Authority 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 Ad-
ministrator may require. The Administrator may approve, disap-
prove, or modify the determination. Thereafter, during the period
of emergency, no employer of the Subdivision shall sell or offer to
sell any products of the Subdivision for which the lowest reasonable
cost has been determined at such prices or upon such terms or con-
ditions of sale that the buyer will pay less therefore than the lowest
reasonable cost of such products.
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.
ARTICLE VIII-PRICE LISTS
(a) If and when the Code Authority of this Subdivision deter-
mines that in any branch or group of the Subdivision it has been
the generally recognized practice to sell a specified product on the
basis of net. price lists, or price lists with discount sheets, and
fixed terms of sale and payment, each employer shall, within ten
(10) days after notice of such determination, file with the Code
Authority a net price list, or a price list and discount sheet, as
the case may be, individually prepared by him, showing his current



i







prices, or prices and discounts, and terms of sale and payment, for
such specified product, and the Code Authority shall immediately
publish and send copies thereof to all known employers who are
cooperating in this Supplemental Code as described in Section (e)
of Article V hereof.
Revised price lists and/or discount sheets and/or terms of sale
and payment for such product may be filed from time to time
thereafter with the Code Authority by any employer, but such
revised price lists and/or discount sheets and/or terms of sale and
payment shall be filed with the Code Authority ten (10) days
in advance of the effective date. Copies of such revised price lists
and/or discount sheets and/or terms of sale and payment, for such
product, with notice of the effective date specified, shall be immedi-
ately published and sent to all known employers who are cooperat-
ing in this Supplemental Code as described in Section (e) of
Article V hereof, any of whom may file, if he so desires, to become
effective upon the date when the revised price list and/or discount
sheet and/or terms of sale and payment first filed shall go into
effect, revisions of his price lists and/or discount sheets and/or terms
of sale and payment establishing prices or prices and discounts not
lower or terms of sale and payment not more favorable than those
established in the revised price lists and/or discount sheets and/or
terms of sale and payment first filed. Nothing in the foregoing
shall constitute a limitation upon the right of any employer to file
revised lists fixing his own prices, discounts and terms of sale and
payment, which prices and discounts may be either more or less
favorable than those contained in any other price list, to be effective
as provided in the first sentence of this paragraph.1
(b) If and when the Code Authority shall determine that in any
branch or group of the Subdivision not now selling its product on
the basis of price lists, with or without discount sheets, with fixed
terms of sale and payment, the distribution or marketing conditions
in said branch or group are the same as, or similar to, the distribu-
tion or marketing conditions in a branch or group of the Subdivision
where the use of price lists, with or without discount sheets, and
fixed terms of sale and payment, is well recognized, and that a system
of selling on net price lists or price lists and discount sheets with
fixed terms of sale and payment for such product should be put into
effect in such branch or group, then each employer of such branch or
group shall within ten (10) days after notice of such determination,
file with the Code Authority net price lists or price lists and discount
sheets, containing fixed terms of sale and payment, and such price
lists and/or discount sheets and/or terms of sale and payment may be
thereafter revised in the manner hereinabove provided; provided,
however, that the 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 paragraph (b) of Article
VIII, unless the employers who are at that time engaged in manu-
facturing such product and are at that time cooperating in this Code
have given their affirmative consent to such determination. The
eligibility requirements, method and effect of such voting shall be
the same as provided in section (e) of Article V.
SSee paragraph 2 (1) of order approving this Code.







Each employer shall prepare and shall furnish the Code Authority
for distribution with such number of copies of his price lists and/or
discount sheets and terms of sale and payment as Code Authority
may prescribe.
(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions
of this Article VIII at a price or at discounts, or on terms of sale
and payment, different from those provided in his own current net
price lists, or price lists and discount sheets, provided that nothing
in the above shall prevent an employer from adding to his own
price and/or price list and discount sheets by increasing his job price
to include unusual selling, engineering, servicing, financing, financial
risks, or other similar special charges, (except as provided in Article
VII above), provided, however, that in the event of an employer
quoting a higher price than the price published in his own price
list and/or price list and discount sheets, to take care of unusual
selling, engineering, servicing, financing, financial risks, or other
similar special charges, he shall not subsequently quote a lower price
on said prospective sale than that price first quoted, except in accord-
ance with revised price lists duly filed or unless he simultaneously
eliminates part or all of the unusual engineering, servicing, financing,
financial risks or other special charges, for which a corresponding
reduction only may be made.
(d) No employer shall sell to, or through any broker, jobber, com-
mission account or sales agency, (this is known in the trade as
" pooled buying"), who or which is in fact an agent for an organi-
zation of industrial consumers, with the result that any industrial
consumer secures a discount, allowance or price other than the dis-
count, allowance or price provided for in the employer's own current
net price lists or price lists with discount sheets.
No employer shall evade any provision of this Code by selling to
or through any dealer, jobber, distributor or other selling agency
which shall fail to agree to resell in accordance with the provisions
of Articles VII, VIII and IX of this Supplemental Code.2
(e) Wherever by the provisions of this Article VIII an em-
ployer is or may be required to or permitted to file terms of sale
and payment, such terms shall mean usual or standard terms, and
to cover any special and/or unusual terms definite formulae for
determining such special and 'or unusual terms shall be filed.
(f) If and when Code Authority shall determine that it is unde-
sirable to continue the filing of net price lists and/or price lists with
discount sheets and/or fixed terms of sale and payment on any prod-
uct in respect of which such filing has heretofore been required,
such filing shall cease and the provisions of this Article shall not
apply to such product unless and until Code Authority shall again
determine that such filing be made.
ARTICLE IX-TRADE PRACTICES s
Each of the following acts and practices is deemed to be inimical
to the best interests of this Subdivision, and of the public, and each
is, therefore, hereby declared to be, and to constitute, an unfair
method of competition, viz:
2 See paragraph 2 (2) of order approving this Code.
a See paragraph 2 (3) of order approving this Code.







1. The secret offering or making, to any customer, agent, fiduciary
or representative of customer, of any payment or allowance of a
rebate, refund, commission, credit, credit subsidy, unearned discount
or excess allowance, whether in the form of money or otherwise, or
any special service or privilege, for the purpose of influencing a sale.
No employer of the Subdivision shall give, permit to be given, or
offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee
or the principal of such agent without the knowledge of such em-
ployer or principal, provided that no provisions of this Code shall
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.
2. Any discrimination between purchasers, by the sale of any arti-
cle having .a published price, at any price other than the seller's
published price, by means of direct or indirect price concessions, or
by means of any privilege not extended to purchasers generally.
3. Untruthfully advertising, representing, or marking any product,
with intent to deceive or mislead.
4. The publishing or circularizing of threat of any suit for in-
fringement of patent or trade mark, or of any other legal proceed-
ings, not in good faith, which would tend to harass a competitor or
intimidate his customer.
5. The taking in trade or accepting in trade any secondhand or
old equipment in part payment for new, provided, however, that this
provision shall not be construed to prohibit in any way the return
within six months of the date of shipment, to the Vendor and the
allowance of any fair adjustment thereon by the Vendor of any prod-
uct which shall not meet the purposes for which it was sold. Any
employer may, however, assist in finding a bona fide buyer for said
equipment, but shall in no case take any financial interest in it.
6. So long as the maker of any product of this Subdivision bearing
the maker's name or trade mark, which has required special design-
-ing, research or development expense (or his successor in business)
continues to make and supply such spare, repair and replacement
parts therefore, supplying repair parts for such product of this Sub-
division unless (a) the name of the maker of such copied non-
genuine repair parts shall be plainly marked on each part (or if
this is impracticable on the package or tag) so that the ultimate
user is clearly informed by marking on such parts, packages, tags
and in catalogues, price lists, quoted prices, advertisements or ad-
vertising literature of the manufacturers of such copied non-genuine
parts that said parts were not made by the original maker of the
products of the employer of this Subdivision.
7. The furnishing to any purchaser, and/or his agent, directly or
indirectly of detailed shop drawings of the products of this Sub-
division without filing a statement of such proposed transaction
with the Code Authority which may approve or with the approval of
the Administrator disapprove the transaction within ten (10) days
by written notice to the employer.
8. Disseminating false or misleading information relative to
competitor's products, selling prices, reputation, credit or financial
standing, ability to perform work, or labor conditions.




UNIVERSITY OF FLORIDA

14 3 1262 08584 7357

9. Inducing or attempting to induce a breach or abandonment of
contract covering the purchase or sale of the products of this Sub-
division; provided, however, that nothing in this Section shall
be construed to prohibit the attempt on the part of the owner of
or licensee under any patent to induce a purchaser or future pur-
chaser of any product which shall infringe said patent, to avoid
such purchase.
10. It shall be an unfair trade practice for any employer to en-
gage in destructive price cutting.
ARTICLE X-SALES FOR EXPORT
The provisions of this Supplemental Code concerning pricing and
marketing (Articles VII, VIII and IX) shall not apply to direct
export sales of any product. A similar exemption may be granted
by the Code Authority of this Subdivision as to sales of any product
destined ultimately for export. Unless otherwise determined by
the Code Authority the term-" export shall include all shipments to
all places without the several states of the United States and the
District of Columbia; provided, however, that no shipment to any
territory or possession of the United States shall, be considered an
export when any employer is engaged in the industry in such terri-
tory or possession.
ARTICLE XI-MODIFICATIONS
(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) Study of the trade practices of this Subdivision will be con-
tinued by Code Authority, with the intention of submitting, from
time to time, after its effective date. amendments or additions to,
or revisions of, or supplements to, this Supplemental Code.
Any such amendments, additions, revisions, or supplements, pro-
posed by Code Authority, and approved by a vote of the employers
shall be in full force and effect upon approval by the Presideak.
The eligibility requirements, method, and effect of such voting shall
be the same as provided in Section (e) of Article V.

ARTICLE XII-MONOPOLIES
The Supplemental Code presented by Applicant is not designed
to promote monopoly, and shall not be so construed or applied as
to oppress or eliminate small enterprises or discriminate against
them, and is designed to effectuate the Policy of the Act.

ARTICLE XIII-EFFECTIVE DATE
This Supplemental Code shall become effective and binding :on
all persons engaged in this Subdivision on the eleventh day after
its approval by the President.
Approved Code No. 347-Supplement No. 15.
Registry No. 1399-46.




Full Text

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Approved Code No. 347-Supplement No. 15 Registry No. 1399-46 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PULVERIZING MACHINERY AND EQUIPMENT INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JUNE 9. 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Docum e nts, Washington, D.C. Pri c e 5 cents

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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. Birmingham, Ala. : 257 Federal Building. Boston, l\lass. : 1801 Customhouse . Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C . : Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cieveland, Ohio: Chamber of Commerce . Dallas, Tex. : Chamber of Commerce Building. D etroit , Mich.: 801 First National Bank Building. llou ~ ton, Tex.: Chamber of Commerce Building. Indianapolis, Ind.: Chamber of Commerce Building. Ja cksonville, Fla.: Chamber of Commerce Building. Kansas City, 1\10.: 1028 Baltimore A venue. Los Angeles. Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Builcling. Memphis, Tenn.: 229 Jf e cleral Building. Minueapolis, Th1inn. : 2] 3 Federal Building. New Orleans, La. : Room 225-A, Customhouse . New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 Ea s t Plume Street. Philadelphia. Pa.: 422 Commercial Trust Building. Pittsburgb, Pa.: Chamber of Commerce Building. Portland, Oreg.: :215 New Post Office Building. St. Louis, Mo.: 50 6 Olive Street. San Francisco, Cal i f. : 310 Customhouse. Seattle, Wash.: 809 Federal Office Building.

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Approved Code No. 347.-Supplement No. 15 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PULVERIZING MACHINERY AND EQUIPMENT INDUSTRY As Approved on June 9, 1934 ORDER SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PULVERIZING MACHINERY AND EQIDPMENT INDUSTRY 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 Pulverizing Machinery and Equipment Subdivision of Machinery and Allied Products Indus try, 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: NOvV, THEREFORE, on behalf of the President of the United States, I, I{ugh S. Johnson, Administrator for Industral Re covery , pursuant to authority vested in me by Executive Order s of the President, including Executive Order No. 6543-A, dated D ecembe r 30, 1933, and otherwise; do hereby incorporate by referen ce sa id an nexed report and do find that said Supplemental Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby approved s ubject to the followinoconditions: ( 1) Th11 t the provisions of Article VIII, Section (a) in sofa r as they prescribe a waiting period between the filing with the Code Authority ( or such agency as may be designated in the Supple mental Code) and the effective date of price lists, as originally filed and/or revi.:ed price lists or revised terms and conditions of sale, be and they hereby are stayed pending my further order. (2) That the provisions of the second paragraph of Article VIII, Section ( d) be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution of the products of the Subdivision to the Administrator. 60335-657-77-34 (1)

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2 (3) That the prov1 s1o n of Article I X, Sections 5 t o 10 inclu siYe; be and they h e reby are stayed for a period of fifteen (15 ) days; th n to b ecome effective unfo ss I, by my further order other '\Yi se direct; within which time cau e may be shown, if any there be , why the above provi ions should not become effective; and that t he Temporary Code Authority send notice of the stay of these prov sions an of the opportunity to show cause why they should not become effectiYe to all known employers of the Subdivision. HUGH s. JOH.i:-SON, Adniinistrator f01 l nd ustrial R ec ov e ry . Approval recommended : A. R. GLANCY, Di vision Adm)nist?>ator . "\VASIDNGTON, D.C., June 9, 1934.

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REPORT TO TI -I E PRE S IDE N T The PR ES IDENT, T li e Wh i te Hous e . Sm: This report r e l a t e s to the Supplem e ntal Code 0 Fair Com petition for th e Pulverizing 1\1:a c hin e ry and Equipment S u bdivision of J\1a c hin e r y and Alli ed Produ c ts Industry as proposed by the Pul v erizi ng l\fa c h i n ery and Equipment As s ociation. A publi c h e aring wa s h e ld in Washin gto n, D .C . on D ece mb e r 4, 1933 and re c on v ened on December 21 , 19 33 . Th e p ub li c h e arin gs were conducted in ac co rdance wi t h th e pr ov i s ion s of Tit l e I of th e National Industrial R e covery A et and all per s on s w e r e gi ve n full opportunity to be heard. GENERAL STAT E l\IENT The Pulverizing lVI a c hin e ry and Equipm e nt Subdivi s i o n, b e jn g truly representati ve of th e manuf a cturer s 0 the product s defin e d i n Article II of th e Supplem e ntal Code, has elected to formulate and submit a Supplemental Cod e of Fair Competition as provided in the second paragraph of Article I of the Code of Fair Competition for the Machinery and Allied Products Indu s try, approved by you on the seventeenth day of l\1arch, 1934. Th ~ S ubdivision as defined in the Supplemental Code includes the de s i g n, manufacture, contracting for or subletting the manufacturing for the sale of ball, tube, roller and attrition types of pulverizing machines, air separators or cla ss ifiers of dry materials, and auxiliary equipment including spare, repair, and r e plac e ment parts thereof, and includes all tho s e so eng a ged 7 provided that the Subdivision shall not include fuel-pulverizing eqmpm e nt or s pare, repair or repla ce ment parts thereof. Employers otherwi s e eng a ged in the Farm Equipment Indu s try may manufa c ture for sale , and sell h a mm e r n1ills, feed grinders and similar equipm e nt for u s e on f a rm s, und e r th e Code of the Farm Equipment Indu s try and not und e r the provisions of this Code. ECON O MIC EFFE C T Annual sa l es in 1 93 2 , a cco rdin g t o th e A ss o c i at i on, were approx n 1a t e l y 84 p e r cent below th e 1 929 l eve l. Th ey decl i ned fr o m $5 , 44 8, 000 in 1 929, t o $864, 0 0 0 in 1 932 . Sa l es as r eported f o r t he fir s t s i x m o nth s of 1 93 3 a r e 6 9.1 pe r ce nt o f t h e tota l sa l es for 1 932 . Thi s m ay r epresent a n up wa r d t rend in b us i ness provided sa l es are n o t seaso n a l. I nveste d ca pit a l decl i ned approximate l y 1 5 per cen t s i nce th e pea k year , 1 93 0, whi l e the production capac i ty h as r ema i ned cons+ an t . ( 3 )

PAGE 6

4 E s t i mate s of approximate employment for th e entire industry sub mi tt ed b y th e trad e assoc i a tion, i n di c at e that employment had de clin e d from 630 in 19 2 9 t o 2 15 in 1 93 3, or 65 . 9 per cent. A v er a ge hour s per w ee k wer e r epo rt e d to be 46.8 in June, 1929; 30.6 in June , 193 3 ; an d 3 5.0 in O c tobe r , 1933. In October, 1933 u th e av e r aBe h o urs w e re 25 p e r c e nt le s s than the June, 1929 average. Th e effect of th e 40-hour provi s ion with production at more nor m a l l e v e l s ma y b e estimat e d on a ba s is of the 1930-1931 average of t otal man-hours p e r w ee k divid e d by the number of hours prescribed in the Code. After 1929 , m a n-hours declined steadily from 29,484 to a minimum of 8 , 017 in 1933 (fir s t six months), or approximately 72. 8 p e r cent. Since then, man-hours increas e d to 14,105, or 75.9 p e r cent. If it is as s um e d that th e 18,300 a verage man-hours for 1930-1931 are repr ese ntati v e of the volume of production for those years, and a reasonable measure of man-h o ur r e quirements in a more normal period, the adoption of the 40-hour week would require a force of approxim a t e ly 460 employee s , or 73.0 per cent of the 1929 working lev e l. However, considering all employees of the Subdivision would not work the full 40-hour w ee k, the average work week would be shorter; with 36 assumed effective hours, and employment correspondingly greater, viz., 510 workers will be required to produce the 1930-1931 volume. The minimum wage provisions proposed for the Subdivisions which are operating under the Code of the J\fachinery and Allied Products Industry are ba s ed on a flat minimum hourly rate of 32 c en t s p e r hour for the S o u t h and the following city population dif f e r e ntials f o r all other s ect i o n s of th e United States: Over 50,000 population, 40 cents per hour; Ov e r 10 , 0 0 0 to 50,000 population, 38 c e nts per hour; 10 , 000 population a nd un de r , 36 cents per hour. In addi t ion to the minimum wa g e rates s h o wn above, the Code provid es that wom e n engaged in substantially the same work as m e n shall receiv e the sam e rate of pay as such men employees; that the minimum wage for wom e n employees engaged in plant opera tions shall be not less than 87 .5 per cent of t he proper rate for the lo c ality in which employed as specified; and that the minimum in the South shall be not le s s than 32 cents per hour. E s timated numb er of fa c t o ry wo rk e rs r e c e iving l e ss than d e signated hourly rat e s Proposed minimum hourly rates 40 cents (other U.S.) __ ---------------------------------------. 3 8 ce nts ( oth e r U. S .) _ .. __ .. _ ... _______ ... _________________________ _ 3 6 ce nt s (ot h e r U. S.) ____________ _ _______________________ ----------------------32c e nts (s o uth ) __ _ _____________________________________________________________ _ Distribution of factory workers receiving le5s than the miuimum regardles of location Approxi mate per cent 12.0 8.5 4.8 2. 1 Approxi• matc1 num ber 18 12 7 3

PAGE 7

5 Based on the distribution as of June 15, 1933 and on the specified percentages of the number of factory workers receiving le ss than the designated rates shown in the above table, the adoption of the pro posed minimum rates will probably cause an increase in factory pay rolls. The es6mated increa se as of June 15, 1933, regardless of lo catio n of th e workers, will probably, under the most fovorable conditions, not exceed 1.5 per cent, assuming only upward adjust1n ent in the brackets below the 40-cent minimum and no change in man-hour requirements. Distribution of the number of factory workers receiving classified rates in th e spec ifi ed areas are not ava ilabl e . Consequently, it is only possible to estimate the approximate number of f actory work ers who will receive the benefit of the proposed minimum hourly r a t es, reg a rdle ss of lo :::-a tion, on the basis of the number of f actory workers receiving le ss than th e d es ignat e d hourly rates as of June 15, 1933. R ESUME O F SUPPLEMENTAL CODE Article I states the purpose of th e Supplemental Code. Article II accurat e ly defines spec ifi c terms applicable to the Sub division as used in this Supplemental Code. Article III provides for the adoption of the employment provi sions of the National Industrial R ecove ry Code of the : Machinery and Allied Products Industry, as approved by you, and as from time to time amended. Article IV provides for the adoption of Articles II, VI, VIII, and IX of the National Indu s trial Recovery Code of the Machinery and Allied Products Indu s try, in accordance with the conditions of this Article governing their adoption. Article V provides for the establishment of a Code Authority and defines its powers and duties. Art ~ cle VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides that no products of the Subdivision shall b e sold or exchanged below a rea so nable cost when the Code Au thority determines that an emergency exists. Article VIII provide s for method s of setting up, revi si ng and filing price li sts and di sco unt sheets and terms of sale and payment. Article IX se t s forth trade practices for the Subdivision. Article X s tates that no provision of this Supplemental Code re lating to pricing and marketing shall apply to Export sa le s as defined by the term " Export " in thi s Article. Article XI provides that this Supplemental Code and all the provi ions thereof are expressly made subject to the right of the Pr esident, in a ccorda nce with Subsection (b) of Section 10 of the Act, from time to time t o cancel or modify any order, approval, license, rule or regulation i ssued under said Act . Provision is also made that modifications may be submitted by the Code Authority to the Administrator for approval. Article XII. No provision of this Supplementa l Code shall be so applied as to permit monopolies, or monopolistic practices, or to eliminate, oppress, or discriminate against sm . all enterprises. Article XIII st~tes the effect ive date of this Supplemental Code.

PAGE 8

6 FINDINGS Tb~ Assistant D e puty Administrator in his final report to me on s a i d S uppl e mental Code having found as herein set forth and on the b a sis of all the proceedings 1n this matter: I find th a t: (a) Said Supplemental Code is well designed to :promote the p o licie s a n d purpo s es of Title I of the National Indu s trial Recovery A c t, i n clu d ing r e moval of ob s tructions to the free flow of interstate and for e ign comm e rce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organiza tion of in d ustry f o r the purpose of c o operative action among the tra d e groups by indu c ing and maintaining united action of labor and manag e ment und e r adequate governmental sanctions and super vi s ion s , b y e liminating unfair comp e titive practices, by promoting the full est po ss ible utilizati o n of the pre s ent productive capacity 0 indu st ri es, by avoiding undue restriction of production ( except as, may be t e mporarily required), by increasing the consumption of indu s trial and agricultural products through increasing purchasing power, by redn ing and relieving un e mployment, by improving standard s of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 employees; and is not clas s ified by me as a major industry. ( c) The Supplemental Code as approved complies in all respects with the p e rtinent provisions of said Title of said Act, including without limitation Sub s ection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant a s sociation is an industrial association truly representa tive of the aforesaid Subdivision; 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 mono po lies 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 discrim inate against them. ( f) Those engaged in other steps of the economic pro . cess have not been deprived of the right to be heard prior to approval of said Supplem.ental Cocte. For the s e reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication, trade practices, and Article VIII, Section ( e) are stayed, as stated in the order. Respectfully, J UN'n 9, 1934. HUGH s. JOHNSON, Adrrvinistrator.

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SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PULVERIZING MACHINERY AND EQUIPMENT INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY ARTICLE I-PURPOSES To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supplemental Code of Fair Competition for the Pulverizing Machinery and Equipment Subdivision of the Machinery and Allied Products Industry and together with the Code of Fair Competition for the Machinery and Allied Products Industry to which it is a Supplement shall be the standard of fair competition for this Subdivision, and shall be binding on each employer therein. ARTICLE II-DEFINITION "Applicant" means the Pulverizing Machinery and Equipment Association, a trade organization, all members of which are enga ged in the manufacture for sale of the products of the Pulverizinc Machinery and Equipment Subdivision of the Machinery and Allied Products Industry, which organization is truly representative of this Subdivision. " Industry " means the Machinery and Allied Products Industry, as defined in its Code of Fair Competition as approved by the President, March 17, 1934 and as such definition may from time to time be amended. " Subdivision " means the Pulverizing Machinery and Equipment Subdivision of the Machinery and Allied Products Industry as defined and set forth in Paragraph (22) of Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows: "Pulverizing Machinery and Equipment Subdivision, means the design, manufacture, contracting for or subletting the manufacturing for the sale of ball, tube, roller and attrition types of pulverizing machines, air separators or classifiers of dry materials, and auxiliary equipment including spare, repair, and replacement parts thereof and includes all those so engaged; provided that the Subdivision shall not include fuel-pulverizing equipment or spare, repair or replacement parts thereof. Employers otherwise engaged in the Farm Equipment Indust-ry may manufacture for sale and sell hammer mills, feed grinders and similar equipment for use on farms, under the code of the Farm Equipment Industry and not under the provisions of this Code." (7)

PAGE 10

8 " Code " means the Code of Fair Competition for the Machinery and Allied Products Industry, as approved by the President, and as from time to time amended. " Person " means a natural person, a partnership, 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. " Employee " means ainy one who is employed in the Subdivision by any such employer. SThe Act " ieas Title I of the National Industrial Recovery Act. " The President " means the President of the United States. " The Administrator " means the Administrator for Industrial Recovery. " Basic Code Authority means the Code Authority for the Machinery and Allied Products Industry as constituted 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 classification of products within this Subdivision, constituted under the authority of Article V of this Supplemental Code. " Publish " means to make available to the public. " Principles " means all essential characteristics. 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 Code. 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 shall be applicable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; Article VIII, " Modifications and Termination "; Article IX, " Withdrawal"; are hereby made a part of this Supplemental Code with the same effect as if they were written into this Supplemental Code. ARTICLE V-ORGANIZATION AND ADMINISTRATION To administer and supervise, and facilitate the performance of the provisions of this Supplemental Code, there is hereby established a Code Nuthority ". (a) The Code Authority for this Subdivision shall consist of (1) The Executive Committee of the Pulverizing Machinery and Equipment Association, consisting of not less than four and not more thun seven members. (2) One additional member to be elected in any fair manner, with tli', approval of the Administrator, by employers in this Subdivision not members of the Applicant, who are cooperating in this Supple-

PAGE 11

9 mental Code, as described in Section (e) hereof, if so desired, by such non-members. (3) The Administrator may, at his discretion appoint one additional member (without vote and without expense to the Subdivision). (b) Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. (c) In order that the Code Authority shall at all times be truly representative of the Subdivision and in other respects comply with the provisions of the Act, the Administrator may provide 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 Authority, or any Group-Code Authority. The Code Authority may adopt rules and regulations for its procedure and employ such personnel as it may deem necessary. (d) Any employer in this Subdivision shall be eligible for membership in Pulverizing Machinery and Equipment Association. (e) Any employer in this Subdivision shall be entitled to vote, subject to the provisions of Section (a) hereof, at the election of, and share in the benefits of the activities of the Code Authority and may participate in any endeavors of the Code Authority, in the preparation of any revisions of, or additions or supplements to, this Supplemental Code, by paying his proper pro rata share of the reasonable cost of creating and administering it, as determined by the Code Authority, such vote of employers in this Subdivision to be determined subject to the provisions of Section (a) hereof, by a vote of employers who are at that time engaged in manufacturing such product, and are at that time cooperating in this Code, as above described in this Section (e) of this Article V, cast concurrently in each of the two following methods: (1) by one vote of each employer, (2) by vote of employers weighted on the basis of one vote for each $25,000 of sales booked of such products of said employers who are at that time engaged in manufacturing such products, made in the preceding five calendar years, as reported to the Code Authority of this Subdivision. Each employer shall be entitled to at least one such vote. Except as otherwise provided in this code any action taken at any meeting of employers shall be by a majority vote, cast and computed in each of the two methods hereinabove provided. (f) Employers in this Subdivision having a common interest and common problems, may be grouped by Code Authority for administrative purposes into various Group Subdivisions, or product classifications. In each Group Subdivision, or product classification, there may be a Group-Code Authority approved, or appointed, by Code Authority. (g) If formal complaint is made to Code Authority, that provisions of this Supplemental Code have been violated by any employer,

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10 the Code Authority or proper Group-Code Authority, may cause such investigation or audit to be made, to the extent permitted by the Act, as may be deemed necessary. If such investigation is made by Group-Code Authority, it shall report the results of such investigation or audit to Code Authority for action. Unless Basic Code Authority shall take jurisdiction, the Code Authority shall have the right to investigate to the extent permitted by the Act, and analyze any transaction coming under the scope of this Supplemental Code, on which any unfair competition is alleged, to show evidence of any violation of this Supplemental Code, to report any such alleged violation to the proper authorities for action. ARTICLE I-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. Thereafter all employers shall determine an(/or estimate costs in accordance with the principles of such inethods. ARTICLE VII-SELLING BELow REASONABLE COST (a) When the Code Authority has reason to believe that an emergency exists as to any product or products of the Subdivision, and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the purposes or the maintenance of the provisions of this Supplemental Code, the Code Authority may cause an investigation of costs and pricing to be made by an impartial agency in order to determine the existence of the emergency and the Code Authority may cause to be determined the lowest reasonable cost of the product or products of this Subdivision, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of emergency, no employer of the Subdivision shall sell or offer to sell any products of the Subdivision for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than the lowest reasonable cost of such products. When it appears that conditions have changed, the Code Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. ARTICLE VIII-PICE LIsTs (a) If and when the Code Authority of this Subdivision determines that in any branch or group of the Subdivision it has been the generally recognized practice to sell a specified product on the basis of net price lists, or price lists with discount sheets, and fixed terms of sale and payment, each employer shall, within ten (10) days after notice of such determination, file with the Code Authority a net price list, or a price list and discount sheet, as the case may be, individually prepared by him, showing his current

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11 prices, or prices and discounts, and terms of sale and payment, for such specified product, and the Code Authority shall immediately publish and send copies thereof to all kiown employers who are cooperating in this Supplemental Code as described in Section (e) of Article V hereof. Revised price lists and/or discount sheets and/or terms of sale and payment for such product may be filed from time to time thereafter with the Code Authority by any employer, but such revised price lists and/or discount sheets and/or terms of sale and payment shall be filed with the Code Authority ten (10) days in advance of the effective date. Copies of such revised price lists and/or discount sheets and/or terms of sale and payment, for such product, with notice of the effective date specified, shall be immediately published and sent to all known employers who are cooperating in this Supplemental Code as described in Section (e) of Article V hereof, any of whom may file, if he so desires, to become effective upon the date when the revised price list and/or discount heet and/or terms of sale and payment first filed shall go into effect, revisions of his price lists and/or discount sheets and/or terms of sale and payment establishing prices or prices and discounts not lower or terms of sale and payment not more favorable than those established in the revised price lists and/or discount sheets and/or terms of sale and payment first filed. Nothing in the foregoing shall constitute a limitation upon the right of any employer to file revised lists fixing his own prices, discounts and terms of sale and payment, which prices and discounts may be either more or less favorable than those contained in any other price list, to be effective as provided in the first sentence of this paragraph.' (b) If and when the Code Authority shall determine that in any branch or group of the Subdivision not now selling its product on the basis of price lists, with or without discount sheets, with fixed 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 without discount sheets, and fixed terms of sale and payment, is well recognized, and that a system of selling on net price lists or price lists and discount sheets with fixed terms of sale and payment for such product should be put into effect in such branch or group, then each employer of such branch or group shall within ten (10) days after notice of such determination, file with the Code Authority net price lists or price lists and discount sheets, containing fixed terms of sale and payment, and such price lists and/or discount sheets and/or terms of sale and payment may be thereafter revised in the manner hereinabove provided; provided, however, that the 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 paragraph (b) of Article VIII, unless the employers who are at that time engaged in manufacturing such product and are at that time cooperating in this Code have given their affirmative consent to such determination. The eligibility requirements, method and effect of such voting shall be the same as provided in section (e) of Article V. 1 See paragraph 2 (1) of order approving this Code.

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12 Each employer shall prepare and shall furnish the Code Authority for distribution with such number of copies of his price lists and/or discount sheets and terms of sale and payment as Code Authority may prescribe. (c) No employer shall sell directly or indirectly by any means whatsoever, any product of the Subdivision covered by provisions of this Article VIII at a price or at discounts, or on terms of sale and payment, different from those provided in his own current net price lists, or price lists and discount sheets, provided that nothing in the above shall prevent an employer from adding to his own price and/or price list and discount sheets by increasing his job price to include unusual selling, engineering, servicing, financing, financial risks, or other similar special charges, (except as provided in Article VII above), provided, however, that in the event of an employer quoting a higher price than the price published in his own price list and/or price list and discount sheets, to take care of unusual selling, engineering, servicing, financing, financial risks, or other similar special charges, he shall not subsequently quote a lower price on said prospective sale than that price first quoted, except in accordance with revised price lists duly filed or unless he simultaneously eliminates part or all of the unusual engineering, servicing, financing, financial risks or other special charges, for which a corresponding reduction only may be made. (d) No employer shall sell to, or through any broker, jobber, commission account or sales agency, (this is known in the trade as "pooled buying "), who or which is in fact an agent for an organization of industrial consumers, with the result that any industrial consumer secures a discount, allowance or price other than the discount, allowance or price provided for in the employer's own current net price lists or price lists with discount sheets. No employer shall evade any provision of this Code by selling to or through any dealer, jobber, distributor or other selling agency which shall fail to agree to resell in accordance with the provisions of Articles VII, VIII and IX of this Supplemental Code.2 (e) Wherever by the provisions of this Article VIII an employer is or may be required to or permitted to file terms of sale and payment, such terms shall mean usual or standard terms, and to cover any special and/or unusual terms definite formulae for determining such special and/or unusual terms shall be filed. (f) If and when Code Authority shall determine that it is undesirable to continue the filing of net price lists and/or price lists with discount sheets and/or fixed terms of sale and payment on any product in respect of which such filing has heretofore been required, such filing shall cease and the provisions of this Article shall not apply to such product unless and until Code Authority shall again determine that such filing be made. ARTICLE IX--TRADE PRACTICES 3 Each of the following acts and practices is deemed to be inimical to the best interests; of this Subdivision, and of the public, and each is, therefore, hereby declared to be, and to constitute, an unfair method of comlpetitiol, viz: 2 S,, paragraph 2 (2) of order approving this Code. 3 See paragraph 2 (3) of order approving this Code.

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13 1. The secret offering or making, to any customer, agent, fiduciary or representative of customer, of any payment or allowance of a rebate, refund, commission, credit, credit subsidy, unearned discount or excess allowance, whether in the form of money or otherwise, or any special service or privilege, for the purpose of influencing a sale. No employer of the Subdivision shall give, permit to be given, or offer to give, anything of value fcr the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of such employee or the principal of such agent without the knowledge of such employer or principal, provided that no provisions of this Code shall 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. 2. Any discrimination between purchasers, by the sale of any article having a published price, at any price other than the seller's published price, by means of direct or indirect price concessions, or by means of any privilege not extended to purchasers generally. 3. Untruthfully advertising, representing, or marking any product, with intent to deceive or mislead. 4. The publishing or circularizing of threat of any suit for infringement of patent or trade mark, or of any other legal proceedings, not in good faith, which would tend to harass a competitor or intimidate his customer. 5. The taking in trade or accepting in trade any secondhand or old equipment in part payment for new, provided, however, that this provision shall not be construed to prohibit in any way the return within six months of the date of shipment, to the Vendor and the allowance of any fair adjustment thereon by the Vendor of any product which shall not meet the purposes for which it was sold. Any employer may, however, assist in finding a bona fide buyer for said equipment, but shall in no case take any financial interest in it. 6. So long as the maker of any product of this Subdivision bearing the maker's name or trade mark, which has required special designing, research or development expense (or his successor in business) continues to make and supply such spare, repair and replacement parts therefor, supplying repair parts for such product of this Subdivision unless (a) the name of the maker of such copied nongenuine repair parts shall be plainly marked on each part (or if this is impracticable on the package or tag) so that the ultimate user is clearly informed by marking on such parts, packages, tags and in catalogues, price lists, quoted prices, advertisements or advertising literature of the manufacturers of such copied non-genuine parts that said parts were not made by the original maker of the products of the employer of this Subdivision. 7. The furnishing to any purchaser, and/or his agent, directly or indirectly of detailed shop drawings of the products of this Subdivision without filing a statement of such proposed transaction with the Code Authority which may approve or with the approval of the Administrator disapprove the transaction within ten (10) days by written notice to the employer. 8. Disseminating false or misleading information relative to competitor's products, selling prices, reputation, credit or financial standing, ability to perform work, or labor conditions.

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UNIVERSITY OF FLORIDA 14 3 1262 08584 7357 9. inducing or attempting to induce a breach or abandonment of contract covering the purchase or sale of the products of this Subdivision; provided, however, that nothing in this Section shall be construed to prohibit the attempt on the part of the owner of or licensee under any patent to induce a purchaser or future purchaser of any product which shall infringe said patent, to avoid such purchase. 10. It shall be an unfair trade practice for any employer to engage in destructive price cutting. ARTICLE X-SALES FOR EXPORT The provisions of this Supplemental Code concerning pricing and marketing (Articles VII, VIII and IX) shall not apply to direct export sales of any product. A similar exemption may be granted by the Code Authority of this Subdivision as to sales of any product destined ultimately for export. Unless otherwise determined by the Code Authority the term-" export " shall include all shipments to all places without the several states of the United States and the District of Columbia; provided, however, that no shipment to any territory or possession of the United States shall be considered an export when any employer is engaged in the industry in such territory or possession. ARTICLE XI-MoDIFICATIONS (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) Study of the trade practices of this Subdivision will be continued by Code Authority, with the intention of submitting, from time to time, after its effective date, amendments or additions to, or revisions of, or supplements to, this Supplemental Code. Any such amendments, additions, revisions, or supplements, proposed by Code Authority, and approved by a vote of the employers shall be in full force and effect upon approval by the President. The eligibility requirements method, and effect of such voting shall be the same a provided in Section (e) of Article V. ARTICLE XII-MONoPOLES The Supplemental Code presented by Applicant is not designed to promote monopoly, and shall not be so construed or applied as to oppress or eliminate small enterprises or discriminate against them, and is designed to effectuate the Policy of the Act. ARTICLE XIII-EFFECTI-vE DATE This Supplemental Code shall become effective and binding on all persons engaged in this Subdivision on the eleventh day after its approval by the President. Approved Code No. 347-Supplement No. 15. Registry No. 1399-46. 0