Citation
Supplementary code of fair competition for the jack manufacturing industry (a division of the machinery and allied products industry) as approved on August 1, 1934

Material Information

Title:
Supplementary code of fair competition for the jack manufacturing industry (a division of the machinery and allied products industry) as approved on August 1, 1934
Portion of title:
Jack manufacturing 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:
13 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Lifting-jacks -- 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. 1399-42."
General Note:
"Approved Code No. 347--Supplement No. 38."

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:
004938249 ( ALEPH )
649692412 ( OCLC )

Full Text



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Eur Me by the Superintendent of Doemunents, Washington, D.C. Price 5 cenrta


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Registry No. 1399--42


Approved Code No. 3471-Supplement No. 38


NATIONAL RECOVERY ADMINISTRATION





SUPPLE MENTARY

CODE OF FAIR COMPETITION

FOR THE


JACKZ MANUFACTURING

INDUSTRY

(A Divirslon of the Machinery and Allied Products Industry)


AS APPROVED ON AUGUST 1, 1934


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTI1NG OFFICE
WASHINGTON: 1954


























This publientioln is for sale by the Superintendent of Documents, Government
Printing Offic~e, WVashiington, D.C., and by district offices of the Bureau of
Foreign and Domes~tic Commerce.
DISTRICT OFFICES OF TH1E DEPARTMENT OF COMMERCE&

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Alass~. : 180C1 Custombouse?.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wlells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank buildingg.
Bouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jack~sonville, Fla.: Chamber of Commerce Building.
K~ansas City, blo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mlemp~his, Tenu.: 229 Federal Building.
10inneapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
New York. N.Y.: 734 Customhouse.
Nrorfolk, Va.: 406 East Plume Street.
Philadlelphia, Pa.: 422 Commercial Trust Building.
Pittsbjurgh. Pa.: chamber of Commerce Building.
Portland, Or~g~.: 215 New Post Office Building.
St. Loluis, M~o.: 506 Olive Street.
San Fraubisico, Calif.: 310 Customhouse.
Seattle, WTash.: 809 Federal Office Building.












Approved Code No. 347--Supplement No. 38


SUPPLEMaENTARY CODE OF FAIR COMPETITION
FOR THE

JAC K MPVANUIFAC TURNING INDUSTRY

As Approved on August 1, 1934


ORDER

APReoviNo SUPPLEM~ENTARY CODE OF FAIR COMPETITION FOR THE
JACK RaANUFACT-URNG INDUSTRY

A DIVrISION OF THE MABCHINERY AND ALLED PRODUCTS INDUSTRY

An application having been duly made pursuant t~o and in full
compliance with the provisions of Title I of the National Indust~rial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Jack Mlanufacturing Sub-
division of M~achinery and Allied Products Industry, and hearings
having been duly held thereon and the annexed report on said
Supplemental Coecontaining findings w~ith respect thereto, having
been made and directed to the President:
NOW~, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recover~y,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30,193, ad oherisedo herebyq incorporate by reference said
annexed report and do Adta adSplmna oecmle
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 S~upgplemental 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 and the effective date of revised price lists and/or dis-
count sheets and/'or terms of sale and payment, be and they hereby
are stayed pending my further order;
(2) That the provisions of Article VIII, Section (e) be and they
hereby are stayed pending the submission by the Subdivision of satis-
factory evidence to the Administrator of the need of these provisions
in the sale of its products;
(3) That the provisions of Article IX, Section 5 be and they
hereby are stayed for a period of fifteen (15) days, then to becomIe
77014 "--1044--11---34 (








effective unless I by my further order otherwise direct.; within which
time cause may be shown, if any there be, why the above provisions
should not become effective; and
(4) That the provisions of Article IX, Sections 6 and 7 be and
they are hereby stayed pending my further Order.
HowH S. JoHNson,
AdmEinishtrato for Industrial Reco~very.
Approval recommended :
BARTON T. RIURRAY,
DivisJiion AdEministrator.
n ASHINGTON, D.C.,
Au~gus~t 1, 193.












REPORT TO THE PRESIDENT


The PRESIDENT,
The Wh'ite House.
DEAR SmR: Thlis is a report on the Supplemental Cod~e of Fair
Competition for the Jackr Manufacturingq Subdivision of M~achinery
and Allied Products Industry, a Public Hearing on which was held
in Washington, D.C., on December 21, 1933. The Hearing was
conducted in full accordance with the provisions of Title I of the
National Industrial Recovery Act.

GENERAL STATEMCENrT

The Jack~ Alaznufacturing Subdivision beingi representative of the
manufacturers of t~he products defined in Article II of the Supple-
mental Code, has elected to formulate and submit a Supplemnental
Code of Fair Competition as provided in the second pa~agraph of
Article I of the Code of Fair C'ompetition for the M~achinery and
Allied Products Industry, approved by you on the seventeenth day
of 8larch, 19341.
The Jack Mfanufacturing Subdivision means thie manufacture for
sale of jacks and parts thereof used generally in t~he construction,
railroad, mining, and general industrial field,exclusive of automotive
jacks, and includes all those engaged in such manufacture for sale.

ECONOMrIC EFFECT

This Subdivision has been severely affected by the depression.
This is evidenced by the steady decline in annual sales from $2,4119,000
in 1929 to $516,000 in 1932, or 7~8.7 per cent. Sales for the first seven
months of 1933 were estimated at $345 000.
In 1929 this Subdivision employed 293 factory workers, which
total declined to 105 in the second quarter of 1933, or 64%~, and
increased to approximately 160 as of October 15, 1933.
Approximately 26%r~ of the factory workers were working more
than 40 hours per week during the week of June 15, 1933. The
average worlk week declined from 47.5 hours in 1929 to 28.0 hours
as of June 15, 1933, then increased to 30.5 hours as of October 15,
1933.
Approximately 17.5 per cent of the total factory workers employed
as of June 15, 1933, were receiving less than 40 cents per hour; 14.4
per cent wreIC receiving less than 38 cents per hour; and 5.6 per cent
were receiving less than 32 cents per hour.
The wage provisions for the Subdivision, which is operating under
the Code of the Mllachinery and Allied Products Industry, provide
that employees engaged in plant operations shall be paid as follows:
(1) in cities of more than 50,000 population and their immediate








vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not
more than 50,000 population and their immediate vicinity, which
cities are not in thne immedliate vlicinity of a city of more than 50,000
population, 38 cents per hour; (3) in cities of 10,000 population or
less and their immediate vicinity, w-hich cities are not in the imme-
diate vicinity of a city of more than 10,000 population, 36 cents per
hour, except that employees engaged in plant operations in all local-
ities in the states of Vrinia, North Carolina, South Carolina,
Georgia, Florida, Tennessee, Alabama, 1\Iississippi, Arkansas, Louisi-
ana, Texas, and 'Oklahomla, shall be paid not less than 32 cents per
hour.
When females do substantially the same work as males or replace
m~ales, they shall receive the same pay. However, no female em-
ployvee shall be paid less thap 871- or of t.he proper rate for the
locaclity in which employedl.
Empllo~ee~s other thlan, :hose engaged in plant operations shall
receive not less than $15.00O per wecek.
Office bnoys and girls and apprent~ic~es shall be p~aid not less than
809' o~f the minimum wa~ge.
This Supplemental Code provides that no person under sixteen
years of age shanll be emlploy~ed in this Subdivision.
Rnisand OF .SUPPLEMENTAL CODE

Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as usedl in this Supplemnental Code.
Article III provides for the adoption of the employment provi-
sions of the Code of Fair Competition for the 1\iachinery and Allied
Products Indlustry as approv-ed by' you Alarchi seventeenth, 1934, and
as from time to time amended.
Article IV: prov\idecs for the adoption of Articles II, VI and VIII
of the Code of Fair Clomlpetition for the hluchinery andl Allied Prod-
ucts Indu~stry inl accordannce with the condition of this Article govern-
mng their adloption.
Article VT provides for the establishment of the Code Authority
andl defines its powers and duties.
Article V'I pr,1oviides for an accounting systemi and methods of cost
finding a7nd;'or estimating.
Article VII provides that. no products shall be sold or exchanged
below a reasonable cost wIhen the Code Authority determines that
an emerg7ency exists.
Article V'III provides for methods of setting up, revising, and
fiingr price lists and discount sheets and terms 07 sale and payment.
Article IX sets forth trade practices for the Subdivision.
Article X establishes that no provision of this Supplemental Codes
relating t~o pricing and markzetingsalplytepotrde
ArtcleXI stalises hatallprovris~ions of this Supplemental
Code ar~e exrpressly made subject to the right. of the President in
accordance withl Subsect~ion (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 modi-
fications may be submitted by the Code Authorityr.







Article XII: provides means for withdrawal of this Subdivision
from the Basic Clode and its continuance as an autonomous Code.
Article XIII establishes that no provision of this Supplemental
Code shall be so applied as to permit monopolies and monopolistic
practices or to elumnnate, oppress, or discriminate against small
enterprises.
Article XIV states the effective date of this Supplemental Codie.
FINDINGS

The Assistant Depulty Admninistrator in his final report to me on
said Supplemental Code having foundl as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemecntal Code is well designed to promote the
policies and purposes of Tit~le I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tendl to diminish the amount thereof
rand will provide for the general welfare by promoting the orgaaniza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eluinmating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily requiredd, by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of Inbor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000
employees; and is not classified by mle as a major industry.
(c) The Supplemnental 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) ofi
Section 7, and Subsection (b) of Section 10 thereof : and that the
applicant association is an association representative of the aforesaid
Subdivision; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
note or oppress small enterprises and will not operate to discrimiinate
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.
Fior these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication,
trade practices and product sale are stayed as stated in the Order.
Respectfully,
HUGH: S. JoHNson,
Administrator.
AUGURT 1, 1931.













SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THIE JACK MAN UFACTURI~NGt INDUSTRY

A DIVISION OF THE 31AOHINERY AND ALLIED PRODUCTS' INDUS8TRY

Annousn I -PUTRPOSES

To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
Inental C~ode of Fair Competition for the Jackr Manufazcturing Sub-
division of the Mlachinery and Allied Products Industry, and to-
gether with the Code of Fair Competition for the M~achinery and
Lied Products Industry, shall be the standard of fair competi-
tion for this Subdivision, and shall be binding on every employer
therein.
Annamn II-DEFrInNTHN

"Adpplicant means the Jack M1anufacturing Association, a trade
organization, all members of which are engaged in the manufacture
for sale of the products of the Jack Mlanufacturing Subd~ivision
of the M~achinery and Allied Products Industry.
"L Industr~y means the Mlachinery and Allied Products Industry,
as defined in its Code as approved by the President, and as such
definition may from time to time be amended.
"L SCubdiv~ision means the Jack Mlanufacturing Subdivision of the
Machinery and Allied Products Industry as defined and set forth
in paragraph 16 of Article II of the Code of Fair Competition for
the Miachinery and Allied Products Industry as follows:
Jack Mianufacturing Subdivision means the manufacture for
sale of jacks and parts thereof used Benerally in the construction,
railroad, mining, and general industrial field, exclusive of automo-
t~ive jacks, and includes all those engaged in such manufacture for

"L Cod~e means the Code of Fair Competition for the Mlachinery
and Allied Products Industry as approved by the President M9arch
17, 1934, and as from time to time amended.
Pers~on means at natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver
or other entit~y.
Employer means any person engaged in this Subdivision either
on his own behalf or as an employer of labor.
Emplyoyee means any one who is employed in the Subdivision
by any such Emiployer.
The Act mears Title I of the Naotional Industrial Recovery
A ct.
'" The Pres~ide~nt means the President of thle UTnited States.
The Aldministratfor means the Admlinistrator for Industrial
Recovery.








Basia Code Aulthority means the C~ode Aut~hority for the
Machinery and Allied Products Industry as constituted by the Code.
"L Code Authority "' means the Code Authorit~y constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
Group Code Authority means the C~ode Authority for any
group or product classification within this Subdivision.
"L Publish ") means to mak~e available to the public.
ARTICLE TIII-EMIPLOYMENT PROV'ISIONS

The following Articles of the Code, viz: Article III, "L Workcing
Hours "; Article IV, WVages "; a~nd Article V, General Labor Pro-
visions are hereby made a part of this Supplemental Code. with
the same effect as if they were written into this Supplemental Codie.
ARTICLE IV--ADOPTION OF OTHER PROVISIONS OF CODE

The following Articles of the Code, viz: Article II, "L Definitions ",
Article VI, "Administration ", to the extent that they shall be appli-
cable to this Supplemental Code as such or as it may hereafter be~L~oiia
administered as an autonomous Code; and Article VIII oiia
tions and Termination ", are hereby adopted and made a part of
this Supplemental Code, with the same effect as if they were written
into this Supplemental Code.
ARTICLE. V -ADMINISTRBPION

(a) A Code Authority for this Subdivision is hereby constituted
to administer and supervise and to facilitate the enforcement of the
Code and of this Supplemental Code in the manner and to the
extent provided in the Code and in this Supplemental Code.
(b) D~uring a period not to exceed sixty (60) days following the
effective date and pending the election of the permanent Clode Au-
thority, the executive committee of the Applicant shall constitute a
temporary Code Authority.
(c) This Subdivision, having held an election for permanent Code
Authority under the provisions of the Code of Fair Competition for
the Machinery and Allied Products Industry, the C~ode Authority
so elected shall constitute the first permanent Code Authority for
this Subdivision if this method of election meets with the approval
of the Administration. If this method of election does not meet with
the approval of the Administration then the provisions hereinbelow
provided shall apply for the election of the first permanent Code
Authority. For elections after the first, the provisions of this Sup-
plemental Code for election of a permanent Code Authority shall
apply.
(d) The Applicant shall, by written notice mailed registeredd)
to all employers known to the Applicant after a reasonab-ly dili-
gent search, call a meeting of employers to be held within sixty (60)
days after the effective date for the purpose of adopting procedural
rules and regulations for the election, organization and operation of
the permanent Code Authorit and electing a permanent Code Au-
thority, which shall- consist ofnot less than three nor more than








five members. The Administrator may, in his discretion, appoint one
additional member withoutt vote and without expense to the Indus-
try). The permanent Codle Authority so elected and appointed shall
succeed the temporary Code Authority.
(e) Any employer shall be entitled to vote at the election of the
permanent Code Authority andt at other meetings of employers and
share in the benefits of the activities of Code Authority and par-
ticipate in any endleavors of Code Authority in the preparation of
any amendmients or revisions of, or additions or supplements to this
Supplemental Code by paying or agreeing to pay, as and when
assessed, hiis proper pr~o rata share of the reasonable cost of creating
and administer~ing this Supplemental Code as determined by Code
Authority, which is to be computed on the basis of the number of
employees, or on any other equitable basis. If the employee basis is
used, the av\eragie number of persons emnployedi by each employer,
for ass~essmlent purposes, shall be fixed by the Code Authority prior
to the beginning of each fiscal year, based upon t~he average number
of persons employed during t~he preceding calendar year, and such
figrures shall not be changed during t~he fiscal year for which fixed.
(f) Action by employers in any Subdivision meeting for the. elec-
tion of Code Authority shall be by vote of t-he employers entitled to
vote as provided in Sc~tion (e) of this Article V, each such em-
ployer to have one vote only. Action by employers in any Subdi-
vision meeting for the adoption of procedural rules, revisions or
aidditions~ to the Supplemnental Code, or the transaction of other busi-
ness of the Subdivision under this Supplemlental Code, shall be by
vote of th~e employers in the Subdivision who are entitled to vote
threat, as provided in Section (e), Article V of the Supplemental
Code and are present. in person or by proxy duly executed and filed
wFithl Code Authority; cast and computed in the manner provided in
Section (d), Alrticle V'I of the Code. A~ll questions as to the number
of votes which each employer shall be entitled t~o cast at any meeting
of employers other than the meeting heldl to vote for the election oi?
the permanent~ Codle Authority shall be determined by Code Author-
ity', in accordlance with Section (d), Article V'I of the Code.
(g Employers in this Subdivision having a common interest
and common problemis may be grouped by Code Authority for
adlministrative purposes. There shall be a roup Code Authority
approved' or appointed by Clode Aut~hority for each such group.
(h) In order that the Code Authority shall ait all times be truly
rep~resentative of the Subdivision and in other respects comply w~ith
the provisions of the Act, the Administrator may provide such
hearings as he may deem proper; andl thiereafter if he shall find
that th~e Code Authority is not truly representative or does not in
other respects complly withl the provisions of th~e Act, may require
an ap~proipriate modlifiention of the CodeP Authority..
(i) If formal complaint is madle to Code Authority that provisions
of this Supplemiental1 Code have been v-iolated byv any employer,
Cod~e Aut~hority or thle prope~r Group Code Authority muayiesi
gate suIch complaint and. to the extent permiitted by the Acvetcus
such investigation or audit to b~e made, as may be deemedl necessary.
If such investigation or audit is made by or for Group Code Au-
thority it shall report the result of such investigation or audit to
Code Au~thority for action.








(}}) The Code Authority may appoint a Trade Practice Committee
swhieh shall meet with the Trade Practice Commit~tees appointed
under' such other Codes as may be related to the Industry, for the
Pu~rpose of formulating fair trade practices to govern the relation-
aks~ips between production and distribution employers under this
;Sup~plemental Code and under such others to the extent that such
aire~ trade practices may be proposed to the Administrator as amend-
mnents to this Supplemental Clode and such other codes.
(k) Except as otherwise provided in the Act, all individual sta-
tistics, data and information filed in accordance with the provisions
of the Code shall be kept confidential, except with the consent of~
the member filing such statistics or data as to his individual sta-
tistics. The statistics, data, and information of one employer shall
not be revealed to any other employer, except that for the purposes
of administering or enforcing the provisions of this Code, Cd
Authority, by its duly authorized representatives (who shall not be
an employer or in the employ of any employer affected by this
Code), shall have access to any and all statistics, data, and infor-
mattion that mnay be furnished in accordance with the provisions of
this Code.
Auricu VI--ACOOUNTING AND COSTING

The Code Authority may cause to be formulated an1 accounting
.system and methods of cost finding and/or estimating c~apable of use
by all employers of the Subdivision. After such system and metho-
odss 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--SELLUNG BELOW REASONABLE COST

SECTION 1. When the Code Aut~hority determines that an emer-
gency exists in this Subdivision and that the cause thereof is de-
structive prce-cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplemental
Code, the Code Authlority may cause to be determined thle lowest
reasonable cost of the products of this Subdivision, such determina-
tion to be subject to such notice and hearing as the Administrator
may require. The Administrator may approve, disapprove, or
modify the determination. Thereafter, dunrm the period of the
emergency, it shall be an unfair trade practice Ifor any employer of
the Su'bdivision to sell or offer to sell any products of the Subdivi-
sion 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 therefore than the lowest reasonable cost of such product.
W~hen it appears that conditions have changed, the Code Auth~or-
i ,i upon its own initiative or upon the request of any interested
party, sliall cause the determination to be reviewed.
SECTION 2. The foregoing Section 1 shall not apply to dropped
'inis which may be disposed of by any employer at any price and
oddiiny terms or conditions, but only if such employer, not less than
two weeks before such proposed disposal, has filed with Code Au-








thority a statement in writing setting forth the facts of, and reasons
for, such proposed disposal and t~he price and terms and conditions of
sale, and Code Authority has not, (with thle approval of the Admin-
istrator), before the termination of such two week period, in writing,
disapprovedl the proposed disposal. Notice of such disposal, if not
disapproved, shall be sent immediately to all employers manufactur-
ing products of equivalent design, character, quality or specifications,
who may sell such products at prices and on terms and conditions as
favorable as those stipulated in the proposed disposal, when meeting
the competition of such proposed disposal.
SECTION 3. The foregoing Section 1 shall not apply to a sale made
in order to meet competition on products manufactured outside the
United States. For such dlisposal, any employer may sell, at prices
and on terms and conditions as favorable as those of the competing
foreign product, but only if he has first reported to the Code Au-
thor~ity his intention so to sell, and the facts as to the competition
which justifies such action.
AwrTcu: VIII-PmDRcE LWPST

(a) If and when. Code Authority determines that in any group
of the Subdivision it has been th~e generally recognized practice to
sell a specified product on the basis of net price Ilsts, or price lists
with discount sheets, and terms of sale and payment, each employer
engaged in the manufacture of such product shall, within ten (10)
days after notice of such determination, file with Code Authority a
net price list, or a price list with discount sheet, as the case may be,
individually prepared by him, showing his current prices, or prices
and discounts, and terms of sale and payment for such specified
product, and Code Authority~ shall immediately publish and send
copies thereof to all known employers who are cooperating under this
Supplemnental Code as described in Art~icle V (e) and engaged in the
manufacture. of such specified products.
Revised price lists and/'or discount sheets and./or terms of sale
and payment may be filed from time to time thereafter with the Code
Authority by any such employer, to become operative upon the date
specified therein, buxt such revised plr i~cte list n/or discount sheets
and/or terms of sale and payments shalll befuiled with the Code
Authority ten (10) days in advaance of the operative date. Copies
thereof, with notice of thle operative date specified, shall be imme-
diately published and sent to all employers cooperating under this
Supplemental Code as described in Article V (e), any of whom may
file, if he so desires, revisions of his price lists and/or discount sheets
and/or terms of sale and payment, which shall become effective upon
t~he date when, the lreised price list and/or discount sheets and/or
terms of sale and payment fist filed shall go into effect. Each em-
ploer hal prpare and furnish the Code Authority for distribu-
tion itsuhnumber of copies of his price lists and/or discount
sheets and terms of sale and payment as Code Authority maly
prescribe.'
(b) If and when Code Authority shall determine that in any
group of the Subdivision not now selling its product on the basis
a Bee paragraph 2 (1) of order approving this Code.








of price lists, with or without discount sheets, with terms of sale and
payment, the distribution or marketing conditions in the group are
the same as, or similar to, the distribution or marketing conditions
in a group where the use of price lists, with or without discount
sheets and 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 terms of sal and payment for such specified product should
be put into effect in such group, then each employer in such group
shall within twenty (20) days after notice of such determination,
file with Code Authority net price lists or price lists and discount
sheets, with terms of sale and payment, showing his prices and dis-
counts and 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 hereinbefore provided; and such methlods of
pricing and revisions thereof shall be "L published and sent as de-
scribed in Article VIII (a); provided that 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
Section unless affirmative consent to such determlination is given by
a 665S/3% vote of employers who are at that time cooperating under
this Supplemental Code as described in Article V (e), and are
engaged m manufacturing such product. The eligibility reqluire-
ments, method, a~nd effect of such voting shall be the samne as is pro-
vrided by Article V.
(c) For the purpose of gatherings statistical data for the determi-
nation or revision of a lowest reasonable cost under Art~ic~le VII, the
Code Authority shall have power, on its own initiative, or on the
request of any employer, to investigate, to the extent permitted by
the Act, any price or the terms of sale and payment for any product
shown in any price list and/'or discount sheet filed with the Clode
Authority by any employer; and, for the purpose of the investiga-
tion thereof, shall appoint competent representatives who shall not
be an employer or in the employ of any employer affected by the
Code; and also to require., to the extent permitted by the Act, such
employer to furnish, under restrictions as provided in the two patra-
'graphs of Section (f), Article VI of the Code, such information
concerning the cost of manufacturing and selling such product as
the Code Aut~hority shall deem necessary or proper for such purpose.
'(d). No employer shall sell directly or indirectly by any means
whatsoever, any product of t~he 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 ownI current net
price lists, or price lists and discount sheets, and terms of sale and
payment; except as provided in Article VII, Sections 2 and 3.
(e) No em loyer shall evade any provision of this Code by selling
'to or throng any dealer, jobber, distributor or other selling agency
which shall fail to agree to resell in accordance with the provisions of
Articles VII, VIIZI and IX of this Supplemental Code.8
ARTICIA 1IY -UNFARB IRADE C~~dTICES
Each of the following acts and practices is deemed to be inimical
to the best interests of the Subdivision, and of the public, and each is,
a Bee paragraph 2 (2) ofi order approving this Code.








therefore, hereby declared to be, and to constitute, an unfair method
of competition, and is hereby prohibited, viz:
1. The secret offering or mlakinga by any employer of any payment
or allowance of a rebate, refund, commission credit, unearned dis-
count or excess allowance, whether in the form of money or other-
wise, nor shall any employer secretly offer or extend to any customer
any special service or privilege not extended t~o all customers of the
same class, for the purpose of influencing a sale.
2. The giving by any employer or permitting to be given, or
.directly offering 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 tche business of the employer
of such employee, the principal of such agent or the represented
partyv, without the knowledge of such employer, principal, or party.
This provision shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
ais such articles are actually used for commercial bribery as herein-
above dlefinedl.
3. The publi~shingr of a~dvertising (whether printed, radio, display
or of any other nature), which is misleading or inaccurate in any
material particular, nor shall any employer in any way misrepresent
any goods (including but without limitation its use, trade-mark,
grade, quality, quantity, origin, size, substance, character, nature,
finish, material, content or preparation) or credit terms, values,
policies, services, or the nature or form of the business conducted.
4. The defamlat~ion of competitors, by falsely imputing to them
dishornorable conduct, inability to perform contracts, questionable
credit standing, or by other misrepresentations with the tendency
and capacity to mislead and deceive purchasers or prospective
pu rch asers.
5. Any discrimination between purchasers, by the sale of any arti-
cles having a published price and discounts, at any price and dis-
counts other than the seller's published price and discounts, by
means of direct or indirect price concessions, or by means of any
priviee not extended to purchasers of t.he samle M~ass generally.*
6i. Te selling to, or through any broker, commission account or
sales agency, w~ho or which is in fact an agent for an organization
of industrial consumers, with the result that any industrial con-
sumr secures a discount, allowance or price other than the dis-
count., allowPance or price provided for purchasers of the same class
in the employer's own current net price lists or price lists with
discount sheets."
7. The taking in trade or accepting in trade any second-hand or
olId 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
llowance of any fair adjustment thereon by ,the Vendor of any
prouctwhih sall not meet the purposes frwhich it was sold.
Any employer may, however, assist in finding a bona fide buyer for
said equipment but shall in no case take any fnancial interest in it '
8. The indulgingg in destructive price cutting.
a Se pragaph2(3of order approving this Code.
Se parag~raph 2(143 of order approving this Code.








ARTICLE X--ALIES FOR EXPORT

The provisions of this Supplemental Code concerning pricing and
marketing shall not apply to direct export sales of any product. A
similar exemption may be granted by the Code Authority as to
sales of any product destined ultimately for export. The term
"' export shall include all shipments to al places without the sev-
ei-al states of the United States and the District of Columbia; pro-
vided, 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 Subdivision in such territory or possession.
ARECLE 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) Any amendments, additions, revisions, or supplements of this
Supplemental Code, proposed by Code Authority, and authorized
by the affrmative vote of 66%9'0o 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 as
provided by Article V hereof.
ARTICLE XII-WrrimDRAWAL
TUpon thirty days notice to the Basic Code Authority and to the
Administrator, thxs Subdivision maytUb upobXv~;t~ 6U UV ~pn the concurring affirmative
vote of employers within the saidSudvioentldocatto
thirds or more of all the votes that might be cast by all employers
within the Subdivision entitled to vote thereon, withdraw from the
jurisdiction of the Basic Code Authority. The eligibility of voters
and the method and effect of such voting shall be in accordance
with the provisions of Article V hereof. After and in the event such
withdrawal is accomplished this Supplemental Code, together with
the provisions of the Code, shall become and be the sole code goovern-
ing this Subdivision, and the C~ode Authority shall for this Sub-
division, become and be the sole Code Authority and shall perform.
all the functions with respect thereto.
ARTICLE XUIII-MTONOPOLIES
Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemental Code presented by it is not
designed to promote monopoly, and shaUl not be so construed or
apphied as to oppress or eliminate small enterprise or discriminate
against them, and is designed to effectuate the policy of the Act.
A~ncno XIV--EFFECTYE DATE
This Supplemental Code shall become effective andl binding on all
persons engaged in the Subdivision on the eleventh day after its
approval.
Approved Code No. 347i-Supplement No. 38.
R~egistryr No. 1300-42.




UNIVERSITY OF FLORIDA
IM 5 51\\\1\1\ \1\ ll II Asllll
3 1262 08584 7670




Full Text

PAGE 1

V Approved Code No. 347-Supplement No. 38 Registry No. 1399-42 NATIONAL RECOVERY AD1\1INISTRATION SUPPLEMEN ' TARY CODE OF FAIR COMPETITION FOR THE JACK M~t\.NUFACTURING INDUSTRY (A Division of the Machinery and Allied Products Industry) u. AS APPROVED ON AUGUST 1, 1934 WE DO OUR PAJlt UNITED STATES GOVERNMENT PRINTING OFFICE W ASIDNGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents

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This publicati(Jn 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, A.la. : 257 Federal Building. Boston, Mas s . : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. D e troit, Mich.: 801 First National Bank Building. H o uston, 'l'ex.: Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, 1\fo.: 1028 Baltimore A.venue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La.: Room 225-A., Customhouse. New York. N.Y.: 734 Customhouse. Norfolk , Va.: 406 East Plume Street. Philaclelpbia, Pa.: 422 Commercial Trust Building. Pitt s b-urgh , Pa. : hamber of . Commerce Building. Portland, Oreg. : 215 New Post Office Building. St. Louis, Mo.: 506 Olive Street. San Franci s co, Calif. : 310 Customhouse. Seattle, Wash.: 809 Federal Office Building.

PAGE 3

Approved Code No. 347-Supplement No. as SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE . JACK MANUFACTURING INDUSTRY As Approved on August 1, 1934 ~ ORDER APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE JACK MANUFACTURING 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 Jack Manufacturing Sub division of Machinery and Allied Products Industry, and hearings having been duly held thereon and the annexed report on said Supplemental Code containing findings with resp ec t thereto, having been made and directed to the President : No,v, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the Pre sident, including Executive Order No. 6 543-A, dated Decemb e r 30, 1933, and otherwise i do hereby incorporate by reference said annexed report and do nnd that said Supplemental Code complies in all respects with the pertinent provisions and will promote the poli c y 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 b et ween the filing with the Code Authority and the effective date of revised price lists and/or dis count sheets and /o r terms of sale and payment, be and they hereby are stayed pending my further order; ( 2) That the provisions of Article VIII, Section ( e) be and they hereby are stayed pending the submission by the Subdivision of satis factory evidence to the Administrator of the need of these provisions in the sale of its products; ( 3) That the provisions of Article IX, Section 5 be and they hereby are stayed for a period of fifteen (15) days, then to become 77614-1044-11-34 (1)

PAGE 4

2 effective unless I by my further order otherwise direct; within which time cause may be shown, if any there be, why the above provisions should not become effective; and ( 4) That the provi si ons of Article IX, Sections 6 and 7 be and they are h e reby stayed pending my further Order. HUGH s. JOHNSON' Admui n istrator for Industrial Recovery. Approval r eco mm e nd e d: BARTON vv. MURRAY, D ivision Ad1ninistrator. WASHINGTON, D.C., Au , gust 1, 1934.

PAGE 5

REPORT TO THE PRESIDENT The PRESIDENT, The White House. DEAR Srn: This is a report on the Supplemental Code of Fair Competition for the Jack Manufacturing Subdivision of Machinery and Allied Products Indu stry, a Public Hearing on which was held in Washington, D.C., on December 21, 1933. The Hearing was conducted in full accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Jack Manufacturing Subdivision being representative of the manufacturers of the products defined in Article II of the Supple mental 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 Jack Manufacturing Subdivision means the manufacture for sale of jacks and parts thereof used o-enerally in the construction, railroad, mining, and general industrial field, exclusive of automotive jack s, and includes all those engaged in such manufacture for sale. ECONOMIC EFFECT This Subdivision has been severely affected by the depression. This is evidenced by the steady decline in annual sales from $2,419,000 in 1929 to $516,000 in 1932, or 78.7 per cent. Sales for the first seven months of 1933 were estimated at $345 000. In 1929 this Subdivision employed 293 factory workers, which total declined to 105 in the second quarter of 1933, or 64%, and increased to approximately 160 as of October 15, 1933. Approximately 26% of the factory workers were working more than 40 hours per week during the week of June 15, 1993. The average work week declined from 47.5 hours in 1929 to 28 . 0 hours as of June 15, 1933, then increased to 30.5 hours as of October 15, 1933. Approximately 17.5 per cent of the total factory workers employed as of June 15, 1933, were receiving less than 40 cents per hour; 14.4 per cent were receiving less than 38 cents per hour; and 5.6 per cent were receiving less than 32 cents per hour. The wage provisions for the Subdivision, which is operating under the Code of the Machinery and Allied Products Industry, provide that emp loyees engaged in plant operations shall be paid as follows: (1) in cities of more than 50,000 population and their immediate (3)

PAGE 6

4 vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not more than 50,000 population and their immediate vicinity, which cities are not in the immediate vicinity of a city of more than 50,000 population, 38 cents pe.r hour; (3) in cities of 10,000 population or le ss and their immediate vicinity, which cities are not in the inune diate vicinity of a city of m ore than 10,000 population, 36 cents per hour, except that employees engaged in plant operations in all l oca ities in the states of Virginia, North Carolina, South Carolina, Georgia, Florida, Tenne. see, Alabama, Mississippi, Arkansas, Louisi ana , Texa s, and Oklahoma, shall be paid not le ss than 32 cents per hour. 1Vhen females do s ubstantially the sa 1ne work as males or replace males, they shall receive the same pay . However, no female em ployee s hall be paid l ess tha:r, _ 87 % of the proper rate for the l oca lity in which employed. Employ ees other than :ho e engaged in plant operations s hall rec e ive not less than $15.U0 per week. Office boys and girls and apprentices shall be paid not l ess than 80 % of the minimum wage. This Supplementa l Code provides that no person under sixteen years of age s hall be employed in this Subdivision. RESU~IE OF SUPPLEMENT.AL CODE Article I sta t es the purpo s e of the Supplementa l Code. A rticl e II accurately defines specific terms applicab l e to the Subdivi s i o n as use d in this Supplemental Code. . Article III provides for the adoption of the employment provi sions of the Code of Fair Competition for the 1\fachinery and Alli ed Product s In dust ry as approved by you MRrch seventeenth, 193 4, and as from time to time amended . Article IV provides f or the adoption of Articles II, VI and VIII of the Code of Fair Competition for the Machinery and Allied Prod ucts Indu s try in accordance with the condition of this Article govern in g th eir adoption. Article V provides for the establishment of the Code Authority and defines it s powers and duties . Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides that no products shall be sold or exchanged b elow a r easonab le cost when the Code Authority determines that an emergency exists. Article VIII provides for methods of settina up, revising, and filin g price li s ts and discount sheets and terms of sale and payment. Article IX sets forth trade practices for the Subdi v ision. Article X establishes that no provision of this Supplemental Code relating to pricing and m ar keting shall app l y to export trade. Article XI establishes that all provisions of this Supplemental Code are express ly 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, licen se, rule or regulation is s ued under said Act. Provi s ion is a lso made that modi fications may be submitted by the Code Authority .

PAGE 7

5 Article XII provides mean s for withdrawal of this Subdivision from the Basic Code and its continuance as an autonomous Code. Article XIII establishes that no ];)rovision of this Supplemental Code shall be so applied as to p 0 rm1t monopolies and monopolistic practices or to eliminate, oppress, or discriminate against small enterprises. Article XIV states the effective date of this Supple~ental Code. FINDINGS The Assistant D ep uty 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 R ecover y 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 promotingthe organiza tion of industry for the purpose of cooperative act10n among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super vision, by eliminatin~ unfair competitive practices, by promoting the fullest po ss ible utilization of the present productive capacity of industri es, by avoiding undue r est riction of production ( excep t as may be temporarily required), by increasing the consumption of industrial and agricultural p r oducts 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 i s not clas si fied by me as a majo; industry. ( c) The Supplemental Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limit ation Subsection (a) of Section ( 3), Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant as s ociation is an association representative of the aforesaid Subdivision; and that sa id associa tion imposes no inequitable restric tions on admission to membership therein. ( d) The Supplemental Code is not designed to and will not p~r mit monopolies or monopoli st ic practices . ( e) The Supplemental Code is not designed to and will not elimi nate or oppress small enterprises and will not operate to discriminate against them. (f) Those enga 0 ed in o t her s teps of the economic process have not been deprived of the right to be heard prior to approval of said Supplemental Code. For these rea s ons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication, trade practices and product sale are stayed as stated in the Order. R espectfully, AUGUST 1, 1934. HUGH s. JOHNSON, Adminutrafor.

PAGE 8

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE JACK MANUFACTURING 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 Jack Manufacturing Sub division of the Machinery and Allied Products Industry, and to gether with the Code of Fair Competition for the 1\1achinery and Allied Products Industry, shall be the standard of fair competi tion for this Subdivision, and shall be binding on every employer therein. ARTICLE II-DEFINITIONS "A pplic(JJ}1,t " means the Jack Manufacturing Association, a trade organization, all members of which are engaged in the manufacture for sale of the products of the Jack Manufacturing Subdivision of the Machinery and Allied Products Industry. "Industry" means the Machinery and Allied Products Industry, as defined in its Code as approved by the President, and as such definition may from time to time be amended. "Swbdiv isio n" means the Jack Manufacturing Subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph 16 of Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows: "Jack Manufacturing Subdivision means the manufacture for sale of ja cks and parts thereof used generally in the construction, railroad, mining, and general indu stria l field, exclusive of automo tive ja c ks, and includes all those engaged in such manufacture for sale." "Oode" means the Code of Fair Competition for the :Machiner y and Allied Products Industry as approved by the President March 17, 1934, 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 receive r or other entity. "Employ e r" means a . ny person engaged in this Subdivision either on his own behalf or as an employer of labor. "Ernployee" 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 Pr e sid en t" means the President of the United States. "Th e Ad1ninristrator" means the Administrator for Industrial Recovery. (6)

PAGE 9

7 "Basic. Oode Au , thority" means the Code Authority for the Machinery and Allied Products Industry as constituted by the Code. "Oode .Authority" means the Code Authority constituted for this Subdivision as provided by the Code and by this Supplemental Code. "Group Oode Authority" means the Code Authority for any group or product classification within this Subdivision . "Publish" means to make available to th e public. ARTICLE III-EMPLOYMENT Pn o YISIONS The following Articles of the Code, viz: Article III , "Working Hours " Article IV " Wages " and Article V " General Labor Pro, ' ' ' visions" are hereby ma.de a part of this Supplemental Code , with the ~ame 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 appli cable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; and Article VIII, " Modifica tions and Termination", are hereby adopted and made a part of this Supplemental Code, with the same effect as i:f they were written into this Supplemental Code. ARTICLE V-AnMINISTR.ATION (a) A Code Authority for this Subdivision is hereby constituted to administer and supervise and to facilitate the enforcement of the Code and of this Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. (b) During a period not to exceed sixty (60) days following the effective date and pending the election of the permanent Code Au thority, the executive committee of the Applicant shall constitutB a temporary Code Authority. ( c) This Subdivision, having held an election for permanent Code Authority under the provisions of the Code of Fair Competition for the ~1achinery and Allied Products Industry, the Code Authority so elected shall constitute the first permanent Code Authority for this Subdivision if this method of election meets with the approval of the Administration. If this method of election does not meet with the approval of the Administration then the provisions hereinbelow provided shall apply for the election of the first permanent Code Authority. For elections after the first, the provisions of this Sup plemental Code for election of a perman e nt Cod e Auth o rity sha ll apply. ( d) The Applicant shall, by written notice mailed (registered) to all employers known to the Applicant after a r e a so nably dili gent search, call a meeting of employers to be h e ld within sixty (60) days after the effective date for the purpose of adopting procedural rules and r egu lations for the election, organization and operation of the permanent Code Authority and electing a permanent Code Au thority, which shall consist of not le ss than three nor more than

PAGE 10

8 five members. The Administrator may, in his discretion, appoint one additional member ( without vote and without expense to the Indus try). The permanent Code Authority so elected and appointed shall succeed the temporary Code Authority. (e) Any employer shall be entitled to vote at the election of the permanent Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and par ticipate in any endeavors of Code Authority in the preparation of any amendments or revisions of, or additions or supplements to this Supplemental Code by paying or agreeing to pay, as and when assessed, his proper pro rata share of the reasonable cost of creating and administering this Supplemental Code as determined by Code Authority, which is to be com:puted on the basis of the number of employees, or on any other equitable basis. If the employee basis is used, the average number of persons employed by each employer, for assessment purposes, shall be fixed by the Code Authority prior to the beginning of each fiscal year, based upon the average number of persons employed during the preceding calendar year, and such figures shall not be changed during the fiscal year for which fixed. ( f) Action by employers in any Subdivision meeting for the elec tion of Code Authority shall be by vote of the employers entitled to vote as provided in Section ( e) of this Article V, each such em ployer to have one vote only. Action by employers in any Subdi vision meeting for the adoption of procedural rules, revisions or additions to the Supplemental Code, or the transaction of other busi ness of the Subdivision under this Supplemental Code, shall be by vote of the employers in the Subdivision who are entitled to vote thereat, as provided in Section ( e), Article V of the Supplemental Code and are present in person or by proxy duly executed and filed with Code Authority; cast and computed in the manner provided in Section ( d), Article VI of the Code. All questions as to the number of votes which each employer shall be entitled to cast at any meeting of employers other than the meeting held to vote for the election of the permanent Code Authority shall be determined by Code Author ity in accordance with Section ( d), Article VI of the Code. (g) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for administrative purposes. There shall be a Group Code Authority approved or appointed by Code Authority for each such group. (h) 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 of the Code Authority. ( i) If formal complaint is made to Code Authority that provisions of this Supplemental Code have been violated by any employer, Code Authority or the proper Group Code Authority may investi gate such complaint and, to the extent permitted by the .Act, cause such investigation 0r audit to be made, as may be deemed necessary. If such investigation or audit is made by or for Group Code Au thority it shall report the result of such investigation or audi~ to Code Authority for action.

PAGE 11

9 (j) The Code Authority may appoint a Trade Practice Committee whic!h shall meet with the Trade Practice Committees appointed under such other Codes as m ay be related to the Indu stry, for the purpose of formulating fair trade practices to govern the relation ships between production and distribution employers under this Supplemental Code and under such others to the extent that such fair trade practices may be propo se d to the Administrator as amend ments to this Suppl ementa l Code and such other codes. (k) Except as otherwise provid ed in the Act , all in d i vid ual sta tistics, data and info r mation filed in accordance with the provisions of the Code shall be k ep t confidential, except with the consent of the member filing such statistics or data as to his individual sta tistics. The statistics, data, and information of one employer shall not be reveal e d to any o t her employer, except that for the purpose of administering or enforcing the provisions of this Cod e, Code Authority, by its duly authorized repre se ntatives (who shall not be an employer or in the employ of any employer affected by this Code), shall have access to any and all statistics, da ta, and infor mation that may be furnished in accordance with the pro-vis . ions of this Code. ARTICLE VI-AccouNTING AND CosTING The Code Authority may cause to be formulated an ac c ount ing system and methods of cost finding and/or estimating capable of use by all employers of the Subdivision. After such system and meth ods have been formulated, full details concerning them sha ll be made available to all en1ployers . Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such methods. ARTICLE VII-SELLING BELOW RE ASON ABLE CosT SECTION 1. When the Code Authority determines that an emer gency exists in this Subdivision and that the cau se thereof is de structive price-cutting such as to render ineffective or se riously endanger the maint enanc e of the provisions of this Supplemental Code, the Code Author i ty may cause to be determined the l owes t rea sonable cost of the products of this Subdivision, s uch d eterm ina tion to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determination. Th e r e after, during the period of the emergency, it shall be an unfair trade pr ac tice for any employer of the Subdivision to sell or off e r to sell any products of the Subdivi sion for which the lowest r easo nable cost has been determined at such prices or upon such terms or conditions of sale that the buyer will pay le ss therefor than th e lowe st re aso n ab le cost of such product. When it appears that conditions have changed, th e Code Author ity, upon its own initiative or up o n the request of any in tereste d party, shall cau se the d ete rmination to b e reviewed. SECTION 2. The foregoing Section 1 shall not apply to dropped lines which may b e disposed of by any employer at any price and on any terms or conditions, but only if such employer, n ot less than two weeks before such proposed disposal, has filed with Code Au

PAGE 12

10 thority a statement in writing setting forth the facts of, and reasons for, such proposed di s posal and the price and terms and conditions of sale, and Code Authority has not, ( with the approval of the Admin istrator), b e fore the termination of su c h two week period, in writing, disapproved the proposed disposal. Notice of such disposal, if not disapproved, shall be sent immediately to all employers manufactur ing produ c; ts of equivalent design, character, quality or specifications, who may sell s uch products at prices and on terms and conditions as favorable as those stipulated in the proposed disposal, when meeting the competition of such proposed disposal. SECTION 3. The foregoing Section 1 shall not apply to a sale made in order to moot competition on products manufactured outside the United States. For such disposal, any employer may sell, at prices and on terms and conditions as favorable as those of the competing foreign product, but only if he has first reported to the Code Au thority his intention so to sell, and the facts as to the competition which justifies s uch action. ARTICLE VIII-PRICE LISTS (a) If and when Code Authority determines that in any group of the Subdivi s ion it has been the generally recognized practice to sell a specified product on the basis of net price lists, or price lists wi t h discount sheets, and terms of sale and payment, each employer engaged in the manufacture of such product shall, within ten (10) days after notice of such determination, file with Code Authority a net pri c e li s t, or a price list with discount sheet, as the case may be, indi v idually prepared by him, showin~ his current prices, or prices and discounts, and terms of sale and payment for such specified product, and Code Authority shall immediately publish and send copi e s thereof to all known employers who are cooperating under this Supplemental Code as described in Article V (e) and engaged in the m a nufa c ture of such specified products. Revised price lists and / or discount sheets and / or terms of sale and payment may be filed from time to time thereafter with the Code Authority by any su c h employer, to become operative upon the date sp ec ified therein, 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 operative date. Copies thereof, with notice of the operative date specified, shall be imme diately published and sent to all employers cooperating under this Supplem e ntal Code as described in Article V ( e), any of whom may file, if he so desires, revi s ions of his price lists and/or discount sheets and / or terms of sale and payment, which shall become effective upon the date when the revised price list and/or discount sheets and/or terms of sale and payment first filed shall go into effect. Each em ployer shall prepare and furnish the Code Authority for distribu tion with such number of copies of his price lists and/or discount sheets and terms of sale and payment as Code Authority may prescribe. 1 (b) If and when Code Authority shall determine that in any group of the Subdivision not now selling its product on the basis 1 See paragraph 2 (1) of order approving this Code.

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11 of price lists, with or without discount sheets, with terms o:f sale and payment, the distribution or marketing conditions in the group are the same as, or similar to, the distribution or marketing conditions in a group where the use o:f price lists, with or without discount sheets and terms o:f sale and payment is well recognized, and that a system o:f selling on net price lists or price lists and discount sheets with terms o:f sale and payment :for such specified product should be put into effect in such group, then each employer in such group shall within twenty (20) days after notice o:f such determination, file with Code Authority net pri~ lists or price lists and discount sheets, with terms o:f sale and payment, showing his prices and dis counts and terms o:f 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 hereinbef ore provided ; and such methods o:f pricing and revisions thereof shall be " published and s e nt " as de scribed in Article VIII (a) ; provided that 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 Section unless affirmative consent to such determination is given by a 66 % vote o:f employers who are at that time cooperating under this Supplemental Code as described in Article V ( e), and are engaged in manufacturing such product. The eligibility require ments, method, and effect o:f such voting shall be the san1e as is pro vided by Article V. ( c) For the purpose of gathering statistical data :for the determi nation or revis10n of a lowest reasonable cost under Article VII, the Code Authority shall have power, on its own initiative, or on the request of any employer, to investigate, to the extent permitted by the Act, any price or the terms o:f sale and payment :for any product shown in any price list and/or discount sheet filed with the Code Authority by any employer; and, :for the purpose o:f the investiga tion thereof, shall appoint competent representatives who shall not be an employer or in the employ of any employer affected by the Code; and also to require, to the extent permitted by the Act, such employer to :furnish, under restrictions as provided in the two para graphs of Section (:f), Article VI of the Code, such in:formation concerning the cost o:f manu:facturing and selling such product as the Code Authority shall deem necessary or proper :for such purpo s e. (d) No employer shall sell directly or indirectly by any means whatsoever, any product o:f the Subdivision covered by pr o visions o:f 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 li s ts, or price lists and discount shets, and terms of sale and payment; except as provided in Article VII, Sections 2 and 3. ( e) 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 o:f this Supplemental Code. 2 ARTICLE IX-UNFAIR ThADE PRACTICES Each o:f the :following acts and practices is deemed to be inimical to the best inrerests o:f the Subdivision, and o:f the public, and each is, 2 See paragraph 2 (2) of order approving this Code.

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12 there:fore, hereby declared to be, and to constitute, an unfair method of competition, and is hereby prohibited, viz: 1. The secret offering or making by any employer o:f any payment or allowance of a rebate, refund, commission credit, unearned dis count or excess allowance, whether in the :form of money or other wise, nor shall any employer secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. 2. The giving by any employer or permitting to be given, or _ directly offering 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, the principal of such agent or the represented party, without the knowledge of such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles commonly used :for advertising except so far as such articles are actually used for commercial bribery as herein above defined. 3. The publishing of advertising (whether printed, radio, display or of any other nature), which is misleading or inaccurate in any material particular, nor shall any employer in any way misrepresent any goods (including but without limitation its use, trade-mark, gTade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation) or credit terms, values, policies, services, or the nature or form of the business conducted. 4. The defamation of competitors, by falsely imputing _ to them dish o norable conduct, inability to perform contracts, questionable credit standing, or by other misrepresentations with the tendency and capacity to mislead and deceive purchasers or prospective purchas e rs . 5. Any discrimination between purchasers, by the sale of any arti cles having a published price and discounts, at any price and dis counts other than the seller's published price and discounts, by means of direct or indirect price concessions, or by means of any privilege not extended to purchasers of the same class generally. 8 6. The sellin~ to, or through any broker, commission account or sales agency, who or which is in :fact an agent :for an organization of indu str ial consumers, with the result that any industrial con sumer secu res a discqunt, allowance or price other than the dis count, allowance or price provided for purchasers of the same class in the employer's own current net price lists or price lists with di sco unt sheets. 4 7. The taking in trade or accepting in trade any second-hand or old equipment 1n part paym e nt for new, provided, however, that this provision shall not be construed to :r:rohibit in any way the return within six months o:f 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.' 8. The indulging in destructive price cutting. 8 See paragraph 2 (3) of order approving this Code. See paragraph 2 ( 4) of order approving this Code.

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13 ARTICLE X-S.A.LES FOR EXPORT The provisions of this Supplemental Code concerning pricing and marketing shall not apply to direct export sales of any product. A similar exemption may be granted by the Code Authority as to sales of any product destined ultimately for export. The term "export" shall include all shipments to all pla ces without the sev eral states of the United States and the District of Columbia; pro vided, 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 Subdivision 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 Titl-e I of the Act. (b) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority, and authorized by the affirmative vote of 66 2 /2% 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 as provided by Article V hereof. ARTICLE XII W ITHDRA w AL Upon thirty days notice to the Basic Code Authority and to the Administrator, this Subdivision ma:t, upon the concurring affirmative vote of employers within the said .::,ubdivision entitled to cast two thirds or more of all the votes that might be cast by all employers within the Subdivision entitled to vote thereon, withdraw :from the jurisdiction of the Basic Code Authority. The eligibility of voters and the method and effect of such voting shall be in accordance with the provisions o:f Article V hereof. After and in the event such withdrawal is accomplished this Supplemental Code, together with the provisions of the Code, shall become and be the sole code govern ing this Subdivision, and the Code Authority shall for this Sub division, become and be the sole Code Authority and shall perform all the functions with respect thereto. ARTICLE XIII-MONOPOLIES Applicant imposes and shall impose no in eq uitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopoly, and shall not be so construed or applied as to oppress or eliminate sma ll enterprise or discriminate against them, and is designed to effectuate the policy of the Act. ARTICLE XIV-EFFECTIVE DATE This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval. Approved Code No. 347-Supplement No. 38. R egis try No. 1399-42. 0

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