Citation
Supplementary code of fair competition for the wheel and rim manufacturing industry (a product group of the automotive parts and equipment manufacturing industry) as approved on October 24, 1934

Material Information

Title:
Supplementary code of fair competition for the wheel and rim manufacturing industry (a product group of the automotive parts and equipment manufacturing industry) as approved on October 24, 1934
Portion of title:
Wheel and rim manufacturing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
U.S. Government Printing Office
Publication Date:
Language:
English
Physical Description:
12 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Automobiles -- Wheels ( lcsh )
Automobile supplies industry -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1404-46."
General Note:
"Approved Code No. 105--Supplement No. 4."

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:
004938100 ( ALEPH )
649429005 ( OCLC )

Full Text






NATIONAL RECOVERY ADMINISTRATION




SUPPLEMENTARY
CODE OF FAIR COMPETITION

FOR THE


WHEEL AND RIM

MANUFACTURING INDUSTRY
(A Product Group of the Automotive Parts and
Equipment Manufacturing Industry)


AS APPROVED ON OCTOBER 24, 1934


I rip


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


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


Approved Code No 105-Supplement No. 4


Registry No. 1404-46
























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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Seattle, Wash.: 809 Federal Office Building.










Approved Code No. 105-Supplement No. 4


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE

WHEEL AND RIM MANUFACTURING INDUSTRY

As Approved on October 24, 1934


ORDER
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHEEL AND
RIM MANUFACTURING INDUSTRY
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFAC-
TURING 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 Code of
Fair Competition for the Wheel and Rim Manu facturing Product
Group of the Automotive Parts and Equipment Manufacturing
Industry, a supplemental Code to the Basic Code of the Automo-
tive Parts and Equipment Manufacturing Industry, and hearings
having been duly held thereon and the annexed report on said 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, The National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise;
do hereby incorporate by reference said annexed report and do find
that said Code complies in all respects with the pertinent provisions
and will promote the policy and purposes of said Title I of said Act;
and do hereby order that said Code of Fair Competition be and it
is hereby approved; provided, however, that the provisions of Article
IV, paragraph (6), insofar as they prescribe a waiting period be-
tween the filing with the Code Authority (or such agency as may be
designated in the Code) and the effective date of price lists, as
originally filed and/or revised price lists or revised terms and condi-
tions of sale, be and they hereby are stayed pending its further order.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officer.
Approval recommended:
BARTON W. MURRAY,
Division Administrator.
WASHINGTON, D. C.,
October 24, 1934.
93343---1244-90---34 1













REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: The Supplement to the Code of Fair Competition for the
Automotive Parts and Equipment Manufacturing Industry cover-
ing Fair Trade Practices for the Wheel and Rim Manufacturing
Product Group, a Product Group of the said Industry, was sub-
mitted to the Administration on March 16, 1934 by the Code Author-
ity Committee of Automotive Parts and Equipment Manufacturing
Industry, representing approximately 90% of the total volume of
sales and 36% of the members of the Industry.
The Hearing was conducted in Washington on June 25, 1934 and
the Supplement was revised July 20, 1934 and is submitted in its
present form for approval. Every person who requested an appear-
ance was properly heard in accordance with the statutory and
regulatory requirements.
While the Product Group is nation-wide in character, it has not
experienced any increase in the number of establishments during the
past few years.
ARTICLE I states the purpose of the Supplementary Code.
ARTICLE II accurately defines specific terms employed in the Sup-
plementary Code.
ARTICLE III establishes an Administrative Committee consisting
of six (6) members selected in accordance with the voting provisions
in the By-Laws of Automotive Parts and Equipment Manufacturers,
Inc., and one non-voting member may be appointed by the National
Industrial Recovery Board. The labor provisions of the Basic Code
are adopted. It also provides machinery for obtaining statistics
and the administration of this Code.
ARTICLE IV sets forth the fair trade practices of this Supple-
mentary Code, which has been especially designed to effect fair com-
petition in this Product Group of the Industry.
ARTICLE V provides against monopolies and monopolistic practices
and provides for the submission of supplementary provisions to this
Supplementary Code or modifications thereof and contains the
mandatory provisions contained in Section 10 (t) of Title I of the
Act, and states the effective date of the Supplementary Code shall
mean the tenth day after it has been approved.

FINDINGS

The Deputy Administrator in his final report to the National In-
dustrial Recovery Board on said Supplemental Code having found
as herein set forth and on the basis of all the proceedings in this
matter







The National Industrial Recovery Board finds 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-
vision, by eliminating 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 required), by increasing the consumption of in-
dustrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving stand-
ards of labor, and by otherwise rehabilitating industry.
(b) Said Product Group normally employs not more than 50,000
employees; and is not classified by it as a major industry.
(c) The Supplementary Code as approved, complies in all re-
spects 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 Product Group is an' industrial association, truly
representative of the aforesaid Industry; and that said Product
Group imposes no inequitable restrictions on admission to member-
ship therein.
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate 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
Supplementary Code.
For these reasons, therefore, the National Industrial Recovery
Board has approved this Supplementary Code.
For the National Industrial Recovery Board:
G. A. LYNCH,
Administrative Officer.
OCTOBER 24, 1934.











SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WHEEL AND RIM MANUFACTURING INDUSTRY
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT
MANUFACTURING INDUSTRY

ARTICLE I-PURPOSES

Pursuant to the provisions of Article II of the Code of Fair Com-
petition for the Automotive Parts and Equipment Manufacturing
Industry, duly approved by the President on November 8, 1933, the
following provisions covering fair trade practices and the adminis-
tration thereof are hereby established as the standards of Fair Com-
petition for the Wheel and Rim Manufacturing Product Group,
which has been organized as an administrative unit under the Orig-
inal Equipment and Replacement Parts Divisions of the Automo-
tive Parts and Equipment Manufacturing Industry, and shall be
binding upon every member of said Product Group.
ARTICLE II-DEFINITIONS
The term Product Group as used herein is defined to mean the
production, manufacture and/or assembly of wheels (demountable
or otherwise), rims of all types, rim attaching parts, hub and drum
assemblies, hubs, brake drums, hub attaching parts and/or their com-
ponent parts, but not including bolts and nuts for motor vehicles
(automobiles, including passenger cars, trucks, truck tractors, busses,
taxicabs, hearses, ambulances, motorcycles, fire apparatus, tractors
and other commercial vehicles), excepting, however, the production
and/or manufacture of such products when produced or manu-
factured by a manufacturer for use exclusively in his own finished
product.
"Member "-The term "Member" or "Member of the Product
Group" as used herein includes, but without limitation, any indi-
vidual, partnership, association, corporation, or other form of enter-
prise engaged in the production, manufacture, and/or assembly, or
the sale as a manufacturer, of the products of the Product Group
(hereinafter termed Products), either as an employer or on his or
its own behalf.
The term Class 'A' Products as used herein is defined to mean
the products of the Product Group which are sold to manufacturers
of motor vehicles for original equipment.
The term Class B Products as used herein is defined to mean
the products of the Product Group sold to customers other than
buyers of original equipment.
The term "Group" as used herein is defined to mean the Wheel
and Rim Manufacturing Group, a Product Group at present having
its headquarters' office i Detroit, Michigan.








The term Basic Code as used herein is defined to mean the Code
of Fair Competition for the Automotive Parts and Equipment
Manufacturing Industry, as approved by the President on November
8, 1933, and as amended.
The term Code Authority" as used herein is defined to mean
the Code Authority designated in the Code of Fair Competition for
the Automotive Parts and Equipment Manufacturing Industry.
ARTicLE III-AD-rMINISTRATIO
(1) (a) The Administrative Committee of the Group shall con-
sist of six (6) members selected in accordance with the voting pro-
visions provided in the By-Laws of Automotive Parts and Equip-
ment Manufacturers, Incorporated. Not more than one (1) mem-
ber of a firm or its affiliate or subsidiary shall be elected to serve
on the Administrative Committee at the same time.
(b) In addition to the membership as above provided, there may
be one additional member, without vote, to be appointed by the
National Industrial Recovery Board, to serve without expense to
the Product Group for such term as he may specify.
(c) The Administrative Committee shall be elected at the Annual
Meeting of the Group. The First Annual Meeting of the Group was
held at Chicago, Illinois, February 1, 1934, and shall be held an-
nually, thereafter, in the month of January at such place and time
as shall be determined by the Administrative Committee.
(d) Immediately following the Annual Meeting the Administra-
tive Committee shall meet and elect a chairman, a vice-chairman,
and a secretary from among their duly elected members.
(e) The Chairman of the Administrative Committee shall have
the power to call meetings of the Committee and shall be required
to do so on the written request of two members of the Committee
and within ten days from receipt of such requests.
(f) The Administrative Committee shall have the power to call
such meetings of the Group as in their judgment are required and
shall be required to call such Group meetings within two weeks of
receipt of written request for such meetings from five (5) members
of the Group who have qualified as outlined in Article III, para-
graph 3 (b).
(2) The Administrative Committee of the Group is hereby desig-
nated to assist the Code Authority and the National Industrial Re-
covery Board in the administration of the fair trade practice pro-
visions hereinafter set forth and the provisions of the Basic Code,
to which these fair trade practices are a supplement.
(3) (a) It being found necessary, in order to support the admin-
istration of this supplement and to maintain the standards of fair
competition established hereunder to effectuate the policy of the
Act, the Administrative Committee is authorized, subject to the
approval of the National Industrial Recovery Board:
(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the supplement:
(2) To submit to the National Industrial Recovery Board for its
approval, subject to such notice and opportunity to be heard as it








may deem necessary (a) an itemized budget of its estimated expenses
for the foregoing purposes, and (b) an equitable basis upon which
the funds necessary to support such budget shall be contributed by
members of the Product Group;
(3) After such budget and basis of contribution have been ap-
proved by the National Industrial Recovery Board, to determine and
obtain equitable contribution as above set forth by all members of
the Product Group, and to that end, if necessary, to institute legal
proceedings therefore in its own name.
(b) Each member of the Product Group shall pay his or its
equitable contribution to the expenses of the maintenance of the Ad-
ministrative Committee, determined as hereinabove provided, and
subject to rules and regulations pertaining thereto issued by the
National Industrial Recovery Board. Only members of this Product
Group complying with the supplement and contributing to the ex-
penses of its administration as hereinabove provided, (unless duly
exempted from making such contributions,) shall be entitled to par-
ticipate in the selection of members of the Administrative Commit-
tee or to receive the benefits of any of its voluntary activities or to
make use of any emblem or insignia of the National Recovery
Administration.
(c) The Administrative Committee shall neither incur nbr pay
any obligation substantially in excess of the amount thereof as
estimated in its approved budget; and shall in no event exceed the
total amount contained in the approved budget except upon approval
of the National Industrial Recovery Board; and no subsequent
budget shall contain any deficiency item for expenditures in excess
of prior budget estimates except those which the National Industrial
Recovery Board shall have so approved.
(4) (a) The Administrative Committee shall, subject to the dis-
approval of the Code Authority and the National Industrial Recov-
ery Board, have the power to adopt by-laws and rules and regula-
tions for its procedure and to obtain from members, directly or
through an impartial agency, such information and reports as are
required for the administration and enforcement of this supple-
ment; to cooperate with the National Industrial Recovery Board
under such rules and regulations as may be prescribed by it in
regulating the use of any N. R. A. insignia, and in hearing and
adjusting complaints; to initiate, consider, and recommend to the
Code Authority for transmittal to the National Industrial Recovery
Board further fair trade practice provisions to govern the members
of this Product Group; and to discharge the other powers and duties
provided in this supplement.
(b) If the National Industrial Recovery Board shall determine
that any action of the Code Authority and/or the Administrative
Committee or any agency thereof may be unfair or unjust or con-
trary to the public interest, the National Industrial Recovery Board
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and further considera-
tion by such Code Authority and/or the Administrative Com-
mittee or agency pending final action which shall not be effective
unless the National Industrial Recovery Board approves or unless








it shall fail to disapprove after thirty days' notice to it of intention
to proceed with such action in its original or modified form.
(c) Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Administrative Com-
mittee shall (1) impose no inequitable restrictions on membership,
and (2) submit to the National Industrial Recovery Board true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such other infor-
mation as to membership, organization, and activities as the National
Industrial Board may deem necessary to effectuate the purposes of
the Act.
(d) In order that the Administrative Committee shall at all times
be truly representative of the Product Group and in other respects
comply with the provisions of the Act, the National Industrial Re-
covery Board may prescribe such hearings as it may deem proper;
and thereafter if it shall find that the Administrative Committee 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 Administrative Committee.
(5) All members of this Product Group shall be bound by the
provisions of the Basic Code. For this purpose, the wage and hour
provisions of the Basic Code are hereby declared to be a part of
this supplement. In case of any conflict between the provisions of
this supplement and the provisions of the Basic Code, the provisions
of the latter shall govern. As required by Section 7 (a) of Title I of
the Act, the following provisions are contained in this supplement:
Every code of fair competition, agreement, and license approved,
prescribed, or issued under this title shall contain the following
conditions: (1) That employees shall have the right to organize
and bargain collectively through representatives of their own choos-
ing, and shall be free from the interference, restraint, or coercion
of employers of labor, or their agents, in the designation of such
representatives or in self-organization or in other concerted activi-
ties for the purpose of collective bargaining or other mutual aid or
protection; (2) that no employee and no one seeking employment
shall be required as a condition of employment to join any company
union or to refrain from joining, organizing, or assisting a labor
organization of his own choosing; and (3) that employers shall
comply with the maximum hours of labor, minimum rates of pay,
and other conditions of employment, approved or prescribed by the
President.
(6) The Administrative Committee shall cause to be formulated
methods of cost finding and accounting capable of use by all members
of the Product Group, and shall submit such methods to the National
Industrial Recovery Board for review. If approved by the Na-
tional Industrial Recovery Board, full information concerning such
methods shall be made available to all members of the Product
Group. Thereafter, each member of the Product Group shall utilize
such methods to the extent found practicable. Nothing herein con-
tained shall be construed to permit the Administrative Committee,
any agent thereof, or any member of the Product Group to suggest
uniform additions, percentages or differentials or other uniform items







of cost which are designed to bring arbitrary uniformity of costs or
prices.
(7) The Administrative Committee shall be empowered to obtain
from members of the industry such information and reports as are
required for the administration of the Code. In addition to infor-
mation required to be submitted to the Code Authority, members of
the industry subject to this Code shall furnish such statistical in-
formation as the National Industrial Recovery Board may deem
necessary for the purposes recited in Section 3 (a) of the Act to
such Federal and State agencies as it may designate; provided that
nothing in this Code shall relieve any member of the industry of
any existing obligations to furnish reports to any Government agency.
No individual report shall be disclosed to any other member of the
industry or any other party except to such other Governmental
agencies as may be directed by the National Industrial Recovery
Board.
ARTICLE IV-TRADE PRACTICES

In addition to the provisions of Section C of Article VI of the
Basic Code, the following described acts shall constitute unfair
practices:
(1) Costs and Price Cutting.-(a) Wilfully destructive price cut-
ting is an unfair method of competition and is forbidden. Any
member of the product Group or of any other industry or the cus-
tomers of either may at any time complain to the Administrative
Committee that any filed and/or offered price constitutes unfair
competition as destructive price cutting, imperiling small enter-
prises or tending toward monopoly or the impairment of code wages
and working conditions. The Administrative Committee shall
within 5 days afford an opportunity to the member filing and/or
offering the price to answer such complaint and shall within 14 days
make a ruling or adjustment thereon. If such ruling is not con-
curred in by either party to the complaint, all papers shall be re-
ferred to the Research and Planning Division of N. R. A. which
shall render a report and recommendation thereon to the National
Industrial Recovery Board.
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) When an emergency exists as to any given product sale below
the stated minimum price of such product, in violation of the pro-
visions of paragraph (c) hereof, is forbidden.
(d) If the National Industrial Recovery Board, after investiga-
tion shall at any time find both (1) that an emergency has arisen
within the Product Group adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fied product of the Product Group for a limited period is necessary
to mitigate the conditions constituting such emergency and to effectu-
ate the purposes of the Act, the Administrative Committee may
cause an impartial agency to investigate costs and to recommend to







the National Industrial Recovery Board a determination of the
stated minimum price of the product affected by the emergency and
thereupon the National Industrial Recovery Board may proceed to
determine such stated minimum price.
(e) When the National Industrial Recovery Board shall have
determined such stated minimum price for a specified product for a
stated period, which price shall be reasonably calculated to mitigate
the conditions of such emergency and to effectuate the purposes of
the National Industrial Recovery Act, it shall publish such price.
Thereafter, during such stated period, no member of the Product
Group shall sell such specified products at a net realized price below
said stated minimum price and any such sale shall be deemed de-
structive price cutting. From time to time, the Administrative Com-
mittee may recommend review or reconsideration or the National
Industrial Recovery Board may cause any determinations hereunder
to be reviewed or reconsidered and appropriate action taken.
(2) Tools.-To sell the products of this Product Group without
requiring the customer to pay the cost of any or all tools, patterns,
dies, or jigs and/or fixtures which it may be necessary to build for
the purpose of producing the particular part and/or equipment.
Said tools shall be paid for under one of the following conditions
for Class "A" material:
(a) In cash upon the placing of the order, or upon completion of
the tools.
(b) In partial payments, distributed over a period of not more
than ten months.
(c) By an amount added to the cost of each unit of production
which shall equal the total cost of said tools, divided by the total
number of similar or approximately similar parts used by the pur-
chaser or purchasers over the ten months' period immediately pre-
ceding the placing of the order or estimated to be used during the
next ten months' period. In such event, the tool cost shall be pro-
rated in the selling price, or billed separately, and any balance re-
maining unpaid at the completion of the order, or at the discon-
tinuance of the model as current production, shall be immediately
due and payable in cash.
(d) By prorating the purchase price of said tools over the actual
quantity covered by a purchase order; any unpaid balance to be-
come due as in paragraph (c) above.
(3) Price guaranty.-To sell or offer for sale the products of this
Group under any form of price guaranty to a purchaser or prospec-
tive purchaser against either advance or decline in the price of said
products, excepting a guaranty based on the cost of raw materials and
labor, said price to be adjusted at least quarterly, based on a calendar
year, in an amount equal to the increase or decrease in the cost of
raw materials and labor used in the production of said products.
(4) Inaccwrate advertising.-To publish advertising whetheri
printed, radio, display, or of any other nature), which is misleading
or inaccurate in any material particular, or in any material way to
misrepresent any product (including, but without limitation its use,
trade-mark, grade, quality, quantity, origin, size, substance, charac-
ter, nature, finish, material, content, or preparation) or credit terms,
values, policies, services, or the nature or form of the business
conducted.







(5) Coercion.-To require that the purchase of any goods or prod-
ucts be a prerequisite to the purchase of any goods or products.
(6) Open. price filing.-(a) Each member of the Product Group
shall file with a confidential and disinterested agent of the Adminis-
trative Committee or, if none, then with such an agent designated
by the National Industrial Recovery Board, identified lists of all of
its prices, discounts, rebates, allowances, and all other terms or con-
ditions of sale for Class B products, hereinafter in this Section
(6) referred to as "price terms," which lists shall completely and
accurately conform to and represent the individual pricing practices
of said member. Such lists shall contain the price terms for all such
standard products of the Product Group as are sold or offered for
sale by said member and for such non-standard products of said
member as shall be designated by the Administrative Committee.
Said price tei ms shall in the first instance be filed within 15 days
after the date of approval of this provision. Price terms and revised
price terms shall become effective ten (10) days after receipt thereof
by said agent. Immediately upon receipt thereof, said agent shall
by telegraph or other equally prompt means notify said member of
the time of such receipt. Such lists and revisions, together with the
effective time thereof, shall upon receipt be immediately and simul-
taneously distributed to all members selling Class B products and
to all their customers who have applied therefore and have offered
to defray the cost actually incurred by the Administrative Committee
in the preparation and distribution thereof and be available for
inspection by any of their customers at the office of such agent. Said
lists or revisions or any part thereof shall not be made available to
any person until released to all members selling Class "B products
and their customers, as aforesaid; provided, that prices filed in the
first instance shall not be released until the expiration of the afore-
said 15-day period after the approval of this supplement. The
Administrative Committee shall maintain a permanent file of all
price terms filed as herein provided, and shall not destroy any part
of such records except upon written consent of the National Indus-
trial Recovery Board. Upon request the Administrative Committee
shall furnish to the National Industrial Recovery Board or any duly
designated agent of the National Industrial Recovery Board copies
of any such lists or revisions of price terms.
(b) When any member of the Product Group has filed any re-
vision, such member shall not file a higher price within forty-eight
(48) hours.
(c) No member of the Product Group shall sell or offer to sell any
product of the Product Group for which price terms have been filed
pursuant to the provisions of this Section (6), except in accordance
with such price terms; and provided further that in case a member
desires to meet lower competitive price terms which have been filed
in accordance with the provisions of paragraph (a) hereof, said
member shall immediately file new price terms with the Administra-
tive Committee and these new price terms shall become effective on
the same date as the competitive price terms first filed.
(d) No member of the Product Group shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the Product








Group to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Section (6) to
create.1
(7) Cancellation of orders.-To accept cancellation of Class "A"
products of this Product Group definitely ordered and/or specified
and/or released by the purchaser without:
(a) Payment at full contract price for any part and/or equipment
finished prior to and including the date of receipt of notice of can-
cellation.
(b) Payment of commitment charges covering the cost of raw
material purchased for said parts and/or equipment, and any labor
and burden involved in the processing of any partially completed
parts and/or equipment.
(8) Defective mnatcrial.-To allow credit or accept the return of
any defective article until the fact of such defect shall have been
established by authorized representative of the member.
(9) Return of Obsolete and/or Unsalable Products.-The Admin-
istrative Committee shall immediately proceed to formulate rules
and regulations covering the return of obsolete or unsalable products
and present same for the approval of the Product Group, the Code
Authority, and the National Industrial Recovery Board within
thirty days from the effective date. Upon the approval of such
rules and regulations by the National Industrial Recovery Board
after such hearing as it may require, no products shall be accepted
for return except in accordance with the provisions thereof.
(10) Branch and Warehouse Stocks.-To make sales from ware-
house stocks other than from premises owned and/or leased by a
member unless the following provisions prevail:
(a) After the effective date of this supplement no member shall
warehouse products with any customer or on premises owned or
controlled, in whole or in part, by any customer; provided that
nothing herein contained shall prohibit the warehousing of stocks
in a duly established public warehouse whether or not any customer
has an interest therein.
(b) Such members to conduct their own sales through their own
representatives, do their own billing and make their own collections.
(c) Such members to make a reasonable service charge for serv-
ice rendered. No such charge is to be made on sales from branch
or warehouse stocks located in the same city or trading area as a
competitor factory.
(11) Con.sign ment, Floating Credit, or Ledger Balances.-To place
group products with any trade outlet on a consignment basis or on a
floating credit or ledger balance basis.
This cla use shall apply to Class "A" products and to Class "B"
products except in such cases as may be designated by the Admin-
istrative Committee, subject to the disapproval of the Code Au-
thority and the National Industrial Recovery Board.
(12) Export.-The provisions of this supplement with regard to
prices, discounts, deductions, allowances, extras, or methods and/or
terms of sale apply to direct export sales and to sales in course of
export (i. e., sales destined ultimately for export), and to sales of
I See paragraph 2 of order approving this Code.







materials used in the manufacture of products for export, except
as may otherwise be provided by the Administrative Committee, sub-
ject to the approval of the National Industrial Recovery Board.

ARTICLE V-GENERAL

(1) No provision of this supplement shall be so applied as to per-
mit monopolies or monopolistic practices, or to eliminate, oppress,
or discriminate against small enterprises.
(2) Such of the provisions of this supplement as are not required
to be included herein by the Act may, with the approval of the Na-
tional Industrial Recovery Board, be modified or eliminated on the
proposal by the Product Group or any member thereof if it appear
that the public needs are not being served thereby and as changes
in circumstances or experience may indicate.
(3) It is contemplated that from time to time supplementary pro-
visions to this supplement or modifications thereof will, after ap-
proval by the Product Group, be submitted by the Administrative
Committee through the Code Authority for their approval to pre-
vent unfair competition in price and other unfair and destructive
competitive practices and to effectuate the purposes of the Act.
Upon approval by the National Industrial Recovery Board after
such notice and hearing as it may prescribe, such supplementary
provisions or modifications shall become binding as a part of this
supplement.
(4) As required by Section 10 (b) of Title I of the Act, the fol-
lowing provision is contained in this supplement: The President
may from time to time cancel or modify any order, approval,
license, rule, or regulation issued under said Title.
(5) By assenting to this Supplemental Code no member of this
Product G group shall be held to have waived any of his constitu-
tional rights.
(6) Violation by any member of this Product Group of any pro-
vision of this supplement is an act of unfair competition, and the
offender shall be subject to the penalties imposed by the Act.
(7) The Effective Date" of this supplement shall be the tenth
day after it shall have been approved by the President.
Approved Code No. 105-Supplement No. 4.
Registry No. 14J---10.



















































































































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UNIVERSITY OF FLORIDA
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Full Text

PAGE 1

Approved Code No 105-Supplement No. 4 Regis try No. 1404-46 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHEEL AND RIM MANUFACTURING INDUSTRY (A Product Group of the Automo t ive Parts and Equipment Manufacturing Industry) AS APPROVED ON OCTOBER 24, 1934 ' ... 'WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Waahi~ton, D. C. • • • • • • • • Price 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, . Mass. : 1801 Customhouse. Buffalo, N. Y.: Chamber of Commerce Building. Charleston, S. C.: Chamber of Commerce Building. Cllicago, Ill. : Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex.: Chamber of Commerce Building. Detroit, l\Iich.: 801 First National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, fad.: Chamber of CommP.rce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore A venue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. l\lemphis, Tenn.: 229 Federal Building. Minneapolis, l\linn. : 213 Federal Building. New Orleans, La.: Room 225-A, Customhouse. New York, N. Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa.: 4~2 Commercial Trust Building. Pittsburgh, Pa.: Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. St. Louis, 1\1.u. : 506 Olive Street. San Francjsco, Calif.: 310 Customhouse. Seattle, Wash.: 809 Federal Office Building.

PAGE 3

Approved Code No. 105-Supplement No. 4 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHEEL AND RIM MANUFACTURING INDUSTRY As Approved on October 24, 1934 ORDER SUPPLEl\IENTARY CODE OF F AIR COMPETITION FOR THE w HEEL AND RIM MANUFACTURING INDUSTRY A PRODUCT GROUP OF THE AUTOl\-IOTIVE PARTS AND EQUIPMENT MA~UF.A.CTURING INDUSTRY An application having been duly made pursuant to and in full compliance with the provis i ons of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Code of Fair Competition for the Wheel and Rim Manufacturing Product Group of the , Automotive Parts and Equipment :Manufacturing Industry, a supplemental Code to the Basic Code of the Automo tive Parts and Equipment Manufacturing Industry, and hearings having been duly held thereon and the annex e d report on said Code , containing findings with resp ect the reto, having been made and directed to the President: No,v, THEREFORE, on behalf of the President of the Unite d States, The National Industrial Re covery Board, pursuant to authority vested in it by Executive, Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all respects with the pertinent provis ions and will promote the policy and purposes of said Title I of said Act; and do hereby order that said Code of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article IV, paragraph (6), insofar as they prescribe a waiting period be tween the filing with the Cod e Authority ( or such agency as may be designated in the Code) and the effective date of price lists, as originally filed and/or revised price lists or revised terms and condi tions of sale, be and they hereby are stayed pending its further order. NATION AL INDUSTRIAL RECOVERY BOARD, By G. A. LYNCH, Adminisfrative Officer. Approval recommended: BARTON w. MURRAY, Division Administrator. WASHINGTON, D. c., October 24, 1934. 9'3343 -1244-90-34 ( 1 )

PAGE 4

REPORT TO THE PRESIDENT The PRESIDENT, T lte White House. Sm: The Supplement to the Code of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry cover ing Fair Trade Practices for the Wheel and Rim :Manufacturing Product Group, a Product Group of the said Industry, was submitted to the Administration on March 16, 1934 by the Code Authority Committee of Automotive Parts and Equipment Manufacturing Industry, representing approximately 90% of the total volume of sales and 36% of the m e mbers of the Industry. . The Hearing was conducted in ,vashington on June 25, 1934 and the Supplement was revised July 20, 1934 and is submitted in its present form for approval. Every person who requested an appearance was properly heard in accordance with the statutory and regulatory requirements. ,iVhile the Product Group is nation-wide in character, it has not experienced any increase in the number of establishments during the past few years. ARTICLE I states the purpose of the Supplementary Code. ARTICLE II accurately de.fines specific terms em . ployed in the Supplementary Code. ARTICLE III establishes an Administrative Committee consisting of six ( 6) members selected in accordance with the voting provisions in the By-Laws of Automotive Parts and Equipment Manufacturers, Inc., and one non-voting member may be appointed by the National Industrial RecoYery Board. The labor provisions of the Basic Code are adopted. It also provides machinery for obtaining statistics and the administration of this Code. ARTICLE IV se ts forth the fair trade practices of this Supplementary Code, which has been especially designed to effect fair competition in this Product Group of the Industry. ARTICLE V provides against monopolies and monopolistic practices and provides for the submission of supplementary provisions to this Supplementary Code or modifications thereof, and contains the 1nandatory provisions contained in Section 10 (b) of Title I of the Act, and states the effective date of the Supplementary Code shall 1nean the tenth day after it has been approved. FINDINGS The Deputy Administrator in his final report to the National Industrial Recovery Board on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter: (2)

PAGE 5

3 The National Industrial Recovery Board finds that: (a) Said Supplemental Code is well designed to promote the policies and purpos es 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 organi~a 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 eliminating unfair competitive practices, by promoting the fullest poss i ble utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and agricultural products through in creasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise r ehabilitating industry. (b) Said Product Group normally employs not more than 50,000 employees; and is not classified by it as a major industry. ( c) The Supplementary Code as approved, complies in all re spects 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 tha t the applicant Product Group is an industrial association, truly representative of the aforesaid Industry; and that said Produc t Group imposes no inequitable restrictions on ad.Jnission to m em bership therein. (d) The Supplementary Code is not designed to and will not perm.it monopolies or monopolistic practices. ( e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 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 Supplementary Code. For these reasons, therefore, the National Industrial Recovery Board has approved this Supplementary Code. For the National Industrial Recovery Board: G. A. LYNCH, OCTOBER 24, 1934. Admvnistrative Officer.

PAGE 6

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHEEL AND RIM MANUFACTURING INDUSTRY A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFACTURING INDUSTRY ARTICLE I-PURPOSES Pursuant to the provisions of Article II of the Code of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry, duly approved by the President on November 8, 1933, the following provisions covering fair trade practices and the administration thereof are hereby established as the standards of Fair Competition for the "\Vheel and Rim Manufacturing Product Group, which has been organized as an administrative unit under the Original Equipment and Replacement Parts Divisions of the Automo tive Parts and Equipment :Manufacturing Industry, and shall be binding upon every member of said Product Group. ARTICLE II-DEFINITIONS The term "Product Group" as used herein is defined to mean the production, manufacture, and/or assembly of wheels ( demountable or otherwise), rims of all types, rim attaching parts, hub and drum assemblies, hubs, brake drums, hub attaching parts and/or their component parts, but not including bolts and nuts for motor vehicles ( automobile s , including pa s senger cars, trucks, truck tractors, busses, taxicabs, hears es, ambulances, motorcycles, fire apparatus, tractors and other commercial vehicles), excepting, however, the production and/or manufacture of such products when produced or manufactured by a manufacturer for use exclusively in his own finished product. "Membe r "-The term "Member" or "l\'Iember of the Product Group " as used herein includes, but without limitation, any incli vidual, partnership, association, corporation, or other form of enterprise engaged in the production, manufacture, and/or assembly, or the sale as a manufacturer, of the products of the Product Group (hereinafter termed Products), either as an employer or on his or its own behalf. The term "Class 'A' Products" as used herein is defined to mean the products of the Product Group which are sold to manufacturers of motor vehicles for original equipment. The term" Class' B' Products" as used herein is defined to mean the products or the Product Group sold to customers other than buyers of original equipment. The term " Group " as used herein is defined to mean the Wheel and Rim Manufacturin~ Group, a Product Group at present having its headquarters' office rn Detroit, Michigan. (4)

PAGE 7

5 The term " Basic Code " as used herein is d efined to mean the Code of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry, as approved by the President on November 8, 1933, and as amended. The term "Code Authority" as used herein i s defined to mean the Code Authority designated in the Code of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry. ARTICLE III-ArnurN ISTRATION (1) (a) The Administrative Committee of the Group shall consist of six ( 6) members selected in accordance with the voting provi sio n s provided in the By-Laws of Automotive Parts and Equipment :Manufacturers, Incorporated. Not more than one ( 1) member of a firm or its affiliate or subsidiary shall be elected to serve on the Administrative Committee at the same time. (b) In addition to the membership as above provided, there may be one additional member, without vote, to be appointed by the National Industrial Recovery Board, to serve without expense to the Product Group for such term as he may specify. ( c) The Administrative Committee shall be elected at the Annual 1t1eeting of the Group. The First Annual Meeting of the Group was held at Chicago, Illinois, February 1, 1934, and shall be held annually, thereafter, in the month of January at such place and time as shall be determined by the Administrative Committee. ( d) Immediately following the Annual Meeting the Administrative Committee shall meet and elect a chairman, a vice-chairman, and a secretary from among their duly elected members. (e) The Chairman of the Administrative Committee shall hn,ve the power to call meetings of the Committee and shall be required to do so on the written request of two members of the Comm.ittee and within ten days .from receipt of such requests. (f) The Administrative Committee shall have the power to call such meetings of the Group as in their judgmen t are required and shall be required to call such Group meetings within two weeks of receipt of written request for such meetings from five ( 5) members of the Group who have qualified as outlined in Article III, paragraph 3 (b). (2) The Administrative Committee of the Group is hereby designated to assi s t the Code Authority and the National Industrial Re covery Board in the administration of the fair trade practice provisions hereinafter set forth and the provisions of the Basic Code, to which these fair trade practices are a supplement. (3) (a) It being found necessary, in order to support the administration of this supplement and to maintain the standards of fair competition established hereunder to effectuate the policy of the Act, the Administrative Committee :ts authorized, subject to the approval of the National Industrial R ecovery Board: ( 1) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the supplement: (2) To submit to the National Industrial Recovery Board for its • approval, subject to such notice and opportunity to be heard as it

PAGE 8

6 may deem necessary (a) an itemized budget of its estimated expenses for the foregoing purposes, and (b) an equitable basis upon which the funds nece ssary to support such budget shall be contributed by members of the Product Group; (3) After such budge t and basis of contribution have been approved by the National Industrial Recovery Board, to determine and obtain equitable contribution as above set forth by all members of the Product Group, and to that end, if necessary, to institute Legal proceedings the r efor in its own name. (b) Each memb e r of the Product Group shall pay his or its equit a ble contribution to the expenses of the maintenance of the Administrativ e Committee, determined as hereinabove provided, and subject to rules and r e gulations pertaining thereto issued by the National Industrial Re c o very Board. Only members of this Product Group compl ying with the supplement and contributing to the expenses of its administration as hereinabove provided, ( unless duly exempte d from making s uch contributions,) shall be entitled to participate in the selection of members of the Administrative Commit tee or to r e c e i v e th~ benefits of any of its voluntary activities or to 1nake use of any emblem or insignia of the National Recovery Administration. ( c) The Administrat ive Committee shall neither incur nor pay any obligation sub stantially in excess of the amount thereof as e stimated in its approved budget; and shall in no event exceed the total amount contained in the approved budget except upon approval of the National Industrial Recovery Board; and no subsequent budge t s h a ll contain any deficiency item for expenditures in excess of prior budget estimates except those which the National Industrial R e covery Board shall have so approved. (4) (a) The Administrative Committee shall, subject to the disapproval of the Code Authority and the Nationa l Industrial Recovery Board, haY e the power to adopt by-laws and rules and regulations for its procedure and to obtain from members, directly or through an impartial agency, such information and reports as are required for the administration and enforcement of this supple m ent; to cooperate with the National Industrial Recovery Board unde r such rule s and regulations as may be prescribed by it in regulating the u s e of any N. R. A. insignia, and in hearing and adjusting complaints; to initiate, consider, and recommend to the Code Authority for trans n1ittal to the National Industrial Recovery Board further fair trade practice provisions to govern the members of this Product Group; and to discharge the other powers and duties provided in this supplement. (b) If the National Industrial Recovery Board shall determine that any action of the Code Authority and/or the Administrative Committee or any agency thereof may be unfair or unjus t or contrary to the public intB rest, the National Industrial Recovery Board 1nay require that such action be suspended to afford an opportunity for inve stigation of the n1erits of such action and further con s ideration by such Code Authority and/or the Administrative Committee or agency pending final action which shall not be effective unless the National Industrial Re . covery Board approves or unle ss

PAGE 9

7 it shall fail to disapprove after thirty days' notice to it o:f intention to proceed with such action in its original or modified form. ( c) Each trade or industrial association directly or indirectly participating in the selection or activities o:f the Administrative Committee shall (1) impose no inequitable restrictions on membership, and (2) submit to the National Industrial Recovery Board true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, together with s uch other information as to memb ership, organization, and activities as the National Industrial Board may deem necessary to effectuate the purposes of the Act. ( d) In order that the Administrative Committee shall at all times be truly representative of the Product Group and in other respects comply with the provisions of the Act, the National Industrial Re covery Board may prescribe such hearings as it may deem proper; and thereafter if it shall find that the Administrative Committee is not truly representative or does not in other respects comply with the provisions of the A ct, may require an appropriate modification in the method of selection of the Administrative Committee. (5) All members of this Product Group shall be bound by the provisions of the Basic Code. For this purpose, the wage and hour provisions of the Basic Code are hereby d0clared to be a part of this supplement. In case of any conflict between the provisions of this supplement and the provisions of the Basic Code, the provisions of the latter shall govern. As required by Section 7 (a) of Title I of the Act, the following provisions are contained in this supplement: Every code of fair competition, agTeement, and license approved, prescribed, or iss ued under this title shall contain the following conditions: (1) That employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activi ties for the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and (3) that emp loyer s shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the President. (6) The Administrative Committee shall cause to be formulated methods of cost finding and accounting capable of use by all memhBrs of the Product Group, and shall submit such methods to the National Industrial Recovery Board for review. If approved by the National Industrial Recovery Board, full information concerning such methods shall be made available to all members of the Product Group. Thereafter, each member of the Product Group shall utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit the Administrative Committee, any agent thereof, or any member of the Product Group to suggest uniform additions, percentages or differentials or other uniform items

PAGE 10

8 of _cost which are designed to bring arbitrary uniformity of costs or prices. (7) The Administrative Con1mittee shall be empowered to obtain from members of the industry such information and reports as are required for the administration of the Code. In addition to information required to be submitted to the Code Authority, members of the industry sub j ect to this Code shall furnish such statistical information as the National Industrial Recovery Board may deem necessary for the purposes r ecite d in Section 3 (a) of the Act to such Federal and State agencies as it may designate; provided that nothing in this Code shall relie ve any memb e r of the industry of any existino obligations to furnish reports to any Government agency. No individual report shall be disclosed to any other member of the industry or any other party except to such other Governmental agencies as may be directed by the National Industrial Recovery Board. ARTICLE IV-TRADE PRACTICES In addition to the provisions of Section C of Article VI of the Basic Code, the following described acts shall constitute unfair practices: (1) Costs and Price Outting.-(a) Wilfully destructive price cutting is an unfair method of competition and is forbidden. Any member of the product Group or of any other industry or the cus tomers of either may at any time complain to the Administrative Committee that any filed and/or offered price constitutes unfair competition as destructive price cutting, imperiling small enterprises or tending toward monopoly or the impairment of code wages and worlrinoconditions. The Administrative Committee shall within 5 days afford an opportunity to the member filing and/or offering the price to answer such complaint and shall within 14 days make a rulina or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of N. R. A. which shall render a report and recommendation thereon to the National Industrial Recovery Board. (b) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended that sound cost estimating methods should be used and that consideration should be given to co ts in the determination of pricing policies. ( c ) When an emergency exists as to any given product sale below the stated minimum price of such product, in violation of the provi ions of paragraph ( c) hereof, is forbidden. ( d) If the National Industrial Recovery Board, after investigation shall at any time find both ( 1) that an emergency has arisen within the Product Group adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a speci fied product of the Product Group for a limited period is necessary to mitigate the conditions constituting such emergency and to effectuate the purposes of the Act, the Administrative Committee may cause an impartial agency to investigate costs and to recommend to

PAGE 11

9 the National Industrial Recovery Board a determination of the stated minimum price of the product affected by the emergency and thereupon the National Industrial Recovery Board may proceed to determine such stated minimum price. ( e) When the National Industrial Recovery Board shall have determined such stated minimum price for a specified product for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Recovery Act, it shall publish such price. Thereafter, during such stated period, no m ember of the Product Group shall sell such specified products at a net realiz ed price below said stated minimum price and any such sale shall be deemed destructive price cutting. From time to time, the Administrative Com mittee may recommend review or reconsideration or the National Industrial Recovery Board may cause any determinations hereunder to be reviewed or recon sidered and appropriate action taken. (2) Tools.-To sell the products of this Product Group without requiring the customer to pay the cost of any or all tools, patterns, dies, or jigs and/or fixtures which it may be neces sary to build for the purpose of producing the particular part and/or equipment. Said tools shall be paid for unde r one of the fallowing conditions for Class "A" material: (a) In cash upon the placing of the order, or upon completion of the tools. (b) In partial payments, distributed over a period of not more than ten months. ( c) By an amount added to the cost of each unit of production which shall equal the total cost of said tools, divided by the total number of similar or approximately similar parts used by the purchaser or purchasers over the ten months' period immediately preceding the placing of the order or estimated to be used during the next ten months' period. In such event, the tool cost shall be prorated in the selling prioe, or billed separately, and any balance remaining unpaid at the completion of the order, or at the discontinuance of the model as current production, shall be immediately due and payable in cash. ( cl) By prorating the purchase price of said tools over the actual quantity covered by a purchase order; any unpaid balance to be come due as in paragraph ( c) above. (3) Price guaranty.-To sell or offer for sal e the products of this Group under any form of price guaranty to a purchaser or prospective purchaser against either advance or decline in the price of said products, excepting a guaranty based on the cost of raw materials and labor, said price to be adjusted at least quarterly, based on a ca lendar year, in an amount equal to the increase or decrease in the cost of raw materials and labor used in the production of said products. (4) Inaeowrate advertising.-To publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, or in any material way to misrepresent any product (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.

PAGE 12

10 (5) Ooercion.-T'o require that the purchase of any goods or products be a prerequisite to the purchase of any goods or products. (6) Open price filing.-(a) Each member of the Product Group shall file with a confidential and disinterested agent of the Administrative Committee or, if none, then with such an agent designated . by the National Industrial Recovery Board, identified lists of all of its prices, discounts, rebates, allowances, and all other terms or conditions of sale for Class "B" products, hereinafter in this Section ( 6) referred to as " price terms," which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard products of the Product Group as are sold or offered for sale by said member and or such non-standard products of said member as shall be designated by the Administrative Committee. Said price terms shall in the first instance be . filed within 15 days after the date of approval of this provision. Price terms and revised price terms shall become effective ten (10) days after receipt thereof by said agent. Immediately upon receipt thereof, said agent shall by telegraph or other equally prompt means notify said member of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall upon receipt be immediately and simul taneously distributed to all m embe rs selling Class "B" products and to all their customers who have applied therefor and have . offered to defray the cost actually incurred by the Administrative Committee in the preparation and distribution thereof and be available for inspection by any of their customers at the office of such agent. Said li sts or revisions or any part thereof shall not be made available to any person until released to all members selling Class " B " products and their customers, as aforesaid ; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid 15-day period after the approval of this supplement. The Administrative Committee shall maintain a permanent file of all price terms filed as herein provided, and shall not destroy any part of such re . cords except upon written consent of the National Industrial Recovery Board. Upon request the Administrative. Committee shall furnish to the National Industrial Recovery Board or any duly designated agent of the National Industrial Recovery Board copies of any such lists or revisions of price terms. (b) When any member of the Product Group has filed any re vision, such member shall not file a higher price within forty-eight ( 48) hours. ( c) No member of the Product Group shall sell or offer to sell any product of the Product Group for which price terms have been filed pursuant to the provisions of this Section ( 6), except in accordance with such price terms ; and provided further that in case a member desires to meet lower competitive price terms which have been filed in accordance with the provisions of paragraph (a) hereof, said member shall immediately file new price terms with the Administrative Committee and these new price terms shall become effective on the same date as the competitive price terms first filed. ( d) No member of the Product Group shall enter into any agree ment, understanding, combination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any member o:f the Product

PAGE 13

11 Group to change his price terms by the use of intimidation, coercion, or any other influence inconsistent with the maintenance of the free and open market which it is the purpose of this Section ( 6) to create.1 (7) Cancellation of orde1s.-To accept cancellation of Class "A" products of this Product Group definitely ordered and/or specified and/or released by the purchaser without: (a) Payment at full contract price for any part and/ or equipment finished prior to and including the date of receipt of notice of can cellation. (b) Payment of commitment charges covering the cost of raw material purchased for said parts and/or equipment, and any labor and burden involved in the proce ing of any partially completed parts and/or equipment. (8) D e f ective 1nat erial.-To allow credit or accept the return of any defective article until the fact of such defect shall have been established by authorized representative of the member. (9) Return of Obsolete and/or Unsalable Proditcts.-The Administrative Committee shall immediately proceed to formulate rules and regulations covering the return of obsolete or unsalable products and present same for the approval of the Product Group, the Code Authority, and the National Industrial Recovery Board within thirty days from the effective date. Upon the approval of such rules and regulations by the National Industrial Recovery Board after such hearing as it may require, no products shall be accepted for return except in accordance with the provisions thereof. (10) Branc,1i and Warehouse Stocks.-To make sales from ware house stocks other than from premises owned and/or l ease d by a member unless the following provis ions prevail: (a) After the effective date of this supplement no member shall warehou s e products with any customer o r on premises owned or controlled, in whole or in part, b y any customer ; provided that nothing herein contained shall prohibit the warehousing of stocks in a duly establishBd public warehouse whether or not any customer has an interest therein. (b) Such members to conduct their own sales through their own representatives, do their own billing and make their own collections. ( c) Such members to make a reasonable service charge or serv ice rendered. No such charge is to be made on sales ro1n branch or warehouse stocks located in the same city or trading area as a competitor :factory. (11) Consignment, Floating Credit, or Ledger Balances.-To place group products with any trade outlet on a consignment bas is or on a floating credit or ledger balance basis. This clause shall apply to Class "A" products and to Class "B" products except in such cases as may be designated by the Administrative Committee, subject to the disapproval of the Code Authority and the National Industrial Recovery Board. (12) Ewport.-The provisions of this supplement with regard to prices, discounts, deductions, allowances, extras, or methods and/or terms of sale apply to direct export sales and to sales in course of export ( i. e., sales destined ultimately or export), and to sales of 1 See paragraph 2 of order approving this Code.

PAGE 14

12 materials used in the manufacture of products for export, except as may otherwise be provided by the Administrative Committee, subject to the approval of the National Industrial Recovery Board. ARTICLE V-GENERAL (1) No provision of this supplement shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. (2) Such of the provisions of this supplement as are not required to be included herein by the Act may, with the approval of the National Industrial Recovery Board, be modified or eliminated on the proposal by the Product Group or any member thereof if it appear that the public needs are not being served thereby and as changes in circumstances or experience may indicate. (3) It i s contemplated that from time to time supplementary provisions to this supplem en t or modifications thereof will, after approval by the Product Group, be submitted by the Administrative Committee through the Code Authority for their approval to prevent unfair competition in price and other unfair and destructive . competitive practices and to effectuate the purpo,ses of the Act. Upon approYa l by the National Industrial Recovery Board after such notice and hearing as it may prescribe, such supplementary provisions or modifications shall become binding as a part of this supplement. ( 4) As required by Section 10 (b) of Title I of the Act, the fol lowing provision is contained in this ,supplement: The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under said Title. ( 5) By assenting to this Supplemental Code no member of this Product Group shall be held to have waived any of his constitutional rights. ( 6) Violation by any member of this Product Group of any provision of this ,supplement is an act of unfair competition, and the offender shall be subject to the penalties imposed by the Act. ( 7) The "Effective Date" of this supplement shall be the tenth day after it shall have been approved by the President. Approved Code No. 105-Supplement No. 4. Registry No. 1404-4G. 0

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