Approved Code No. 105 Supplement-No. 2 Registry No. 1404-33 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

REPLACEMENT AXLE SHAFT 

MANUFACTURING INDUSTRY 

(A Product Group of the Replacement Parts Division of the 

Automotive Parts and Equipment Manufacturing Industry) 

AS APPROVED ON JULY 3, 1934 

WE DOOURPAR't 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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I / I I ' 

For sale by the Superintendent of Documents, Washington, D.C. - - • • - • • - Price 5 cent. 

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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. 

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Approved Code No. 105-Supplement No. 2 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

REPLACEMENT AXLE SHAFT MANUFACTURING 

INDUSTRY 

As Approved on July 3, 1934 

ORDER 

SUPPLEl\1ENTARY CODE OF FAIR COMPETITION FOR THE REPLACEMENT 

AxLE SHAFT l\1ANUF ACTURING INDUSTRY 

A PRODUCT ORO P OF THE REPLACEMENT PARTS DIVISION OF THE 

AUTOl\IOTIVE PARTS AND EQUIPMENT MA TUFACTURING INDUSTRY 

An application hf1,ving been duly made pursuant to and in full 

complia_nce 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 Replacement Axle Shaft Manufacturing 

Product Group of the Replacement Parts Division of the Automotive 

Parts and Equipment Manufacturing Industry, a supplemental Code 

to the Basic Code of the Automotive Parts and Equipment Manufacturing Indu try, and hearings having been duly held thereon and 

the annexed report on said Code, containing findings with respect 

thereto ha Ying been made and directed to the President: 

O,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 

President, including Executive Order No. 6543-A, dated December 

30 1933, 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 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 (10), insofar as 

they prescribe a waiting period between the filing with the Code 

Authority (i.e. actual receipt by the Code Authority) and the effective date of revised price lists or revised terms and conditions 

of sale be and they are hereby stayed pending my further order. 

HUGH S. JOHNSON, 

Adrninistrator for lndustJrial R ecovery. 

Approval recommended: 

C. E. ADAMS, 

Division Administrator. 

WASHINGTON, D.C., 

July 3, 1934. 

71726°-829-14-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: The supplement to the Code of Fair Competition for the 

Automoti, e Part and Equipment ~fanufacturing Industry covering 

Fair Trade Practice for the Replacement Axle Shaft Manufacturing 

Product Group, a sub-division of the said Indu try, wa submitted 

to the Admini trator on August 26, 1933 by the Chairman of the 

Replacement Axle Shaft Manufacturers, representing approximately 

80% of the total volume of sales and members of the trade. 

The Hearing was conducted in vVashington on December 7, 1933 

and the upplement wa revi ed during the recess of this Hearing 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. 

The Product Group is nation-wide in character and has experienced but little expansion during the past fiye years. 

ARTICLE I tates the purpo e of the Supplementary Code. 

ARTICLE II accurately define specific terms employed in the 

Supplementary Code. This Product Group is a division of the Automotive Parts and Equipment Ianufacturing Indu try and the labor 

provi ion of its Ba ic Code a approved Nm-ember 8, 1933, are the 

labor provi. ions of thi Supplementary Code. 

ARTICLE III e tabli hes an Admini trative Committee, consisting of the Executive Committee of the In titu e and one additional member to be selected at the discretion of the Admini trator 

and one non-Yoting member, to be appointed b the Admini trator. 

It al o provide machinery for obtaining statistics and the adminis• 

tration of thi Code. 

ARTICLE IV et forth the fair trade practices of this Supplementary Code, which has been e pecially designed to effect ·fair 

competition in this Product Group of the Industry. 

ARTICLE V provide against monopolies and monopolistic practices and provide for the ubmi ion of supplementary provi ions 

to this Supplementary Code or modifications thereof, and contains 

the mandatory provisions contained in Section 10 (b) 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 Admini trator in his final report to me on aid Supplemental Code haYing found as herein et forth and on the basis 

cf all the proceedings in thi matter ; 

I find that: 

(a) Sai 1 Supplemental Co le is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

(2) 
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Act, including removal o:f ob tructions 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 organization of industry for the purpose of cooperative action among the 

trade groups, by inducing and maintaining unite l action of labor 

and management under adequate governmental unctions and super- vision, by eliminating unfair competitive practices, by promoting 

the fullest pos ible 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 increasing purcliasing 

power, by reducing and relieving unemployment, by impro ing 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Product Group normally employs not more than 50,000 

employees; and is not clas ified by me as a major industry. 

( c) The Supplem€ntary Code as approved, comp lie in all respects 

with the pertinent provision o:f said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsec6on (a) of 

Section 7 and Subsection (b) of Section 10 thereof; and that the 

applicant Institute is an industrial Association, truly representative 

of the aforesaid Industry; and that said Institute imposes no 

inequitable restrictions on admission to membership therein. 

( d) The Supplementary Code is not designed to and will not 

permit monopolies or monopoli tic 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 o:f the right to be heard prior to approval of · 

said Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code. 

Respectfully, 

JULY 3, 1934. 

HuoH S. JoHNSoN, 

A dhninistrator. 
SUPPLE1'1ENTARY CODE OF FAIR COMPETITION FOR 

THE REPLACEMENT AXLE SHAFT MANUFACTURING 

INDUSTRY 

A PRODUCT GROUP OF THE REPLACEMENT PARTS DIVISION OF THE 

AUTOMOTIVE PARTS AND EQUIPMENT MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

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 for the Replacement Axle Shaft Manufacturing 

Product Group of the Replacement Parts Division of the Automotive 

Parts and Equipment 1'1anufacturing Industry, which has been 

organized as an administrative unit of the Automotive Parts and 

Equipment 1'1anufacturing Industry, are hereby established as the 

standards of fair competition for said Product Group, and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Product Group" as used herein is defined to mean 

the production and/ or manufacture of automotive replacement solid 

propeller shafts, replacement axle shafts and/or flanges for same. 

The term" Member" or" Member of the Product Group" as used 

herein includes, but without limitation, any individual, partnership, 

association, corporation, or other form of enterprise engaged in the 

production and/ or manufacture of the products of the Product 

Group either as an employer or on his or its own behalf. 

The term "Institute" as used herein is defined t o mean the Automotive Replacement Axle Shaft Institute, a trade association at 

present having its headquarters office in Detroit, Michigan, in which 

association no inequitable restrictions are placed upon membership. 

The term " Basic Code " as used herein is defined to mean the Code 

of Fair Competition for the Automotive Parts and Equipment 

l\ilanufacturing Industry, as approved by the President on November 

8, 1933. The term " Code Authority " as used her ein is defined to mean the 

Code Authority designated in the Code of Fair Competition for the 

Automotive Parts and Equipment Manufacturing Industry. 

ARTICLE III-ADMINISTRATION 

( 1) (a) The Executive Comm.ittee of the Institute shall constitute 

the Administrative Corrunittee to assist the Code Authority and 

the Administrator in the administration of the fair trade practice 

(4) 
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provisions hereinafter set forth and the provisions of the Basic Code, 

to which these fair trade practices are a supplement. One additional 

member may in the discretjon of the Admini trator be added to 

represent non-members of the Institute who assent to and comply 

with this supplement, such additional member to be selected by such 

non-memb 0 rs of the Institute by a fair method approved by the 

Admini trator. 

(b) In addition to mem.bership as above provided, there may be 

one additional member, without vote, to be appointed by the Administrator, to <:.-erve without expense to the Industry for such term as he 

may specify. 

(2) ~1embers of this Product Group shall be entitled to participate 

in and share the benefits of the activities of the Administrative 

Committee and to participate in the selection of the members thereof 

as hereinabove set forth, by assenting to and complying with the requirements of the Basic Code an l this supplement, and sustaining 

their reasonable share of the expense of the administration of this 

supplement. Such reasonable share of such expenses shall be determined by the Administrative Committee, subject to review by the 

Code Authority and by the Administrator, on the basis of volume of 

business and/ or such other factors as may be deemed equitable. 

(3) (a) The Administrative Committee shall, subject to the disapproval of the Code Authority and the Administrator, have 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 supplement; to cooperate with the Adminis- trator in regulating the use of any N.R.A. insignia, to hear and adjust 

complaints, to initiate, consider and recommend to the Code Authority for transmittal to the Administrator further fair trade practice 

provisions to govern the members of this Product Group; and to dis- charge the other powers and duties provided in this supplement. 

(b) If the Administrator shall determine that any action of the 

Administrative Committee or the Code Authority or any agency 

thereof may be unfair or unjust or contrary to the public interest, 

the Administrator may require that such action be suspended to 

afford an opportunity for investigation of the merits of such action 

and further consideration by such Administrative Committee or the 

Code Authority or any agency thereof pending final action which 

shall not be effective unless the Administrator approves or unless he 

shall fail to disapprove after thirty days' notice to him of 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 of the Administrative 

Committee shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles 

of association, by-laws, regulations, and any amendments when 

made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem 

necessary to effectuate the purposes of the Act. 

( d) In order that the Administrative Committee shall at all times 

be truly representative of the Product Group and in other respects 
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comply with the provisions of the Act, the Administrator may prescribe such hearings as he may deem proper; and thereafter if he 

shall find that the Administrative Committee is not truly representative or does not in other re pects comply with the provisions of 

the Act, may require an appropriate modification in the method of 

selection of the Administrative Committee. 

( 4) All members of this Proch1 t Group shall be bound by the 

provisions of the Basic Code. For this purpo e, all 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. 

( 5) The Administrative Committee shall cause to be formulated 

accounting methods and principles of ·ost finding and/ or estimating 

capable of use of all members of the Product Group. After such 

methods and principles have been formulated and approved by the 

Administrator, full details concerning them shall be made available 

to all members. Thereafter all members shall determine a.nd/ or 

estimate costs in accordance with such methods and principles. 

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) Selling B elow Oost.-(a) To sell the products of this Product 

Group at prices below co t, determined in the manner provide.d for 

in Article III, paragr aph 5, of this supplement. 

(b) Nothing in this supplement shall prevent a member from 

selling at below cost a computed in accordance with the provisions of 

Article III, paragraph 5 hereof, providing that it is necessary to do 

so to meet a competitive price. ( c) "\Vhen the Administrative Committee determines that an emergency exists in this Product Group and that the cause thereof is 

d structive price-cutting such as to render ineffective or eriously 

endanger the maintenance of the provisions of the Basic Code and/or 

this supplement, the Administrative Committee may cause to be 

determined the lowest reasonable cost of any of the products of this 

Product Group, such determination to be subject to such notice and 

hearing as the Administrator may require. The Administrator may 

approve, di approve, or modify the determination. Thereafter, during the period of the emergency, it shall be an unfair trade practict 

for any member of the Product Group to sell or offer to sell any 

products of the Product Group for which the lowest reasonable cost 

has been determined at uch prices or upon such terms or conditions 

of sale that the buyer will pay less therefor than the lowest reasonable cost of such products. 

When it appear that conditions have changed, the Administrative 

Committee, upon its own initiative or upon the request of any interested party, shall cau e the determination to be reviewed. 

(2) Oom,niercial B'ribery.-To give or permit to be given, or offer 

to give, directly or in Erectly, money or anything of value, to any 

purchaser or pro pective purchaser or to any officer, employee, agent, 
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or representative of such purchaser for the purpose of influencing 

their employers or principals in the purchase of any commodity, with 

or without the knowledge of their employers or principals. This 

paragraph shall not be con trued to prohibit free and general distribution of articles commonly used for advertising except insofar 

as such articles are actually used for commercial bribery as herein 

defined. 

(3) Imitation of trade-marlcs.-To imitate or copy a competitor's 

trade-mark, markino-, trade name, or exclusive and established 

design which identifies the maker or vendor of the product, with the 

purpose or effect of misleading or deceiving any purchaser or 

prosJ?ective purchaser. 

(4) Inaccurate advertising.-To publish advertising (whether 

printed, radio, display, or of any other nature), which is mi leading 

or inaccurate in any material particular, or to misrepresent in any 

way any product (including but without limitation its use, trademark, grade, quality, quantity, origin, size, substance, character, 

nature, finish, material, content, or preparation) or credit terms, 

values, policies, services, or the nature or form of the business 

conducted. 

( 5) Guarantee.-To guarantee against advance or decline in the 

price of group products, or to enter into any agreement with a customer to protect or reimburse him in any manner against decline or 

advance in prices as applying to the stock of merchandise already on 

hand and/or in his or its possession. 

(6) Consignment-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. 

All consignments, floating credit, and/or ledo-er b~Jances existing 

on the date of the approval of this supplement shall be terminated 

within 60 days thereafter by either of the following methods: 

(a) By return of such merchandise to the owner. 

(b) By customer accepting billing for such con ignments, flo.ating 

credits, and/ or ledger balances for payment under regular terms as 

set forth in paragraph 13 o:f this Article. 

( c) Provided that nothing in this Section shall require the termination of existing contracts which, by their terms, cannot be terminated within 60 days after the date of approYal of this upplement, 

subject to the condition that copies of such contracts hall be filed 

with the Administrative Committee. 

If any application of this Section should work any unjust hardship upon any member of the product group or upon any customer, 

such member or customer may appeal to the Code Authority and the 

Administ~ator, who shall have power to grant such relief as justice,. 

may reqmre. 

(7) Lifting Competitors' Stock.-To liquidate, purchase, or accept a competitor's product from any buyer or to agree to do the 

same. 

(8) Coerc:ion.-(a) To require that the purchase of any goods 

be a prerequi ite to the purchase of any Product Group good . 

(b) To require that the purchase of any Product Group goods by 

any cu tom.er be a. prerequi ite to the acceptance by the member of 

the return of any goods from such customer. 
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(9) Filing of price schedules.-Failure to file with the Administrative Committee a compl te and itemized schedule of his respec- tive elling pri es applying to each cla ification of his trade customer in the aft r-market. 

The e ellino- price shall be the final net prices or fr:t prices and 

discount at which the member' group products are billed to the 

re pective cla ·ificution of hi cu ton1.er a filed and shall al o et 

forth the policy of the member a. to freight ,. !lo,rances or any other 

price or selling onces ion to such cu tomers. 

After the filing of price chedule a Group Member shall not 

make any sale of or offer to ell any gToup product to any of his 

classified customers at a net realized price other than that set forth in 

hi own chedule of selling prices to such clas ·ification, until he l~.is 

filed a revi cl schedule as provided for in Paragraph 10. Any infraction of this regulation in whole or in part shall con titute a Co le 

Violation, except in the ca es of members di po ·ing of dropped lines 

or urplus stock or inventories which must be converted into cash to 

meet immediate financial need , in which cases Article VI, Section C, 

Paragraph 2 of the Basic Code shall apply. 

Each member of the Product Group shall provide and furnish the 

Administrative Committee with sufficient copies of price chedules in 

each instance to provide for the mailing of a copy to each member of 

the Group. The Administrative Committee shall likewise make such 

schedules available for inspection by purchasers or prospective purcha er of the classification or classifications affected. 

(10) Changes in Schedules.-Nothing in this Code shall be construed to prevent any member from changing or revising from time 

to time his schedule of selling prices and/or the clas ification of his 

trade cu tomer . These changes or revisions shall not become eff ecti ve, however, until ten days after the date of forwarding by regist ered mail to the Administrative Comnutree by the filing member. 

After the ten-day term has elapsed the new schedules· shall become 

binding upon the filing member in the same manner as was the original schedule which it replaces. 

Promptly upon receipt of any such revision it shall be the duty of 

the A lmini trative Committee to notify all other Group member , furnishing them with an exact copy or duplicate of the revised schedule, any of whom may file, if they so desire, revi ions of their own 

schedules which if filed prior to the date on which the fir t revised 

schedules become effective, may become effective on that date. The 

Admini trative Committee shall likewise make such revised schedule 

available for in pection by purchasers or prospective purchasers of 

the cla sification or clas ifications affected. 

Th u ing of any revi e l or substituted selling price in billing a 

cla sified cu tomer prior to the expiration of the ten-day period 

herein r equired shall con titute a Code Violation. Failure of a 

member to file with the Admini trative Committee any revised or 

sub titut cl price chedule hall con titute a Code Violation.1 

(11) cheditl on n w Nu1nbers, tc.-ln the case of new member or new item offered a additions to a member's Group Products 

1 See paragraph 2 of order approving this Code. 
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Line, and where no previous selling price has been fixed by the 

member reporting, the ten-day interim as outlined under paragraph 

10 does not apply, but in tead the initial selling price as established 

by the member becomes immediately effective. 

It is compulsory, however, for the member to file with the Ad- mini trative Committee a copy of such initial selling prices and 

schedules on such new n1embers or new items in the same manner 

as outlined under paragraph 9. Failure to so file constitutes a Code 

violation. 

( 12) W arehouising .-(a) To sell from warehouses or factories 

pick-up items at the maximum discounts or minimum net selling 

prices for the particular classification of trade cu tomer involved to 

outlets other than those carrying a representative stock of the 

supplying member's products. 

(b) To warehouse stocks 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. 

(13) Terms.-To extend credit terms of sale other than the following: 

(a) Cash Discounts shall not be greater than 2% 10th, prox. 

(b) Due date for net payment shall be not later than the last day 

of the month following date of shipment. 

( c) No cash discount shall be allowed on Trade Acceptance or 

Note Settlements. 

( d) Each member shall provide that when an account is not paid 

on due date, same shall become interest-bearing, at the rate of 6%, 

30 days thereafter, and if Trade Acceptance or Note is accepted 

for settlement, such Trade Acceptance or Note shall likewi e bear 

6% interest from the end of the 30-day period, as above. 

(e) The maximum terms which may be granted on initial orders 

are to be limited to three months, without interest, equal payments 

to he made monthly without cash discounts, except where payment 

comes within the discount period. (f) Customers opening branch stores can be con idered to come 

within the three months' plan when placing the initial order for the 

branch store. 

(14) Special brands or unb1·ande~ rnerchandue.-To sell to any 

purchaser for purpose of resale any products of the Product Group, 

except under the member's own brand or trade name, subject to the 

following exceptions: 

(a) Sales pursuant to any existing arrangement with any purchaser of products of the Product Group under the brand or trade 

name of such purchaser; provided, that within fifteen days after 

the approval of this supplement each such selling member shall file 

a list of such purchasers to whom he sells, together with the discounts 

or net prices at which such products are sold to such purchasers, 

with the Administrative Committee. If any member who, at the date 

of approval of this supplement, is selling pursuant to such an arrangement to any purchaser, should discontinue such sales to such 

purchaser, any other member may thereafter sell products to such 
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purchaser under the same brand or trade name as had thereto£ ore 

been used by such purcha er. 

(b) Sales to any member under the brand or trade name of such 

member if such member him elf manufactures at least 75% by dollar 

value of the products of the Product Group sold by him· provided 

that each such selling member shall immediately file a li t of such 

purcha ino- members to whom he sells, together with their brands 

and/or trade name with the Adn1ini trative Committee. 

( c) ales to a purcha er un ler the brand or trade name of uch 

purcha er if such ellino- member does not sell any product of the 

Product Group under his own brand or trade name· provided, however, that any uch selling memb0 r who manufactures products of 

the Product Group under the brand or trade name of the purchaser 

mu t immediately file with the Admini trative Committee a li t of 

such purcha er to whom he sells, together with their brand and/or 

tra le name . 

If any application of this Section should work any unjust hard hip 

upon any member of the Product Group or upon any cu tomer such 

member or cu tomer niay appeal to the Admini trator who shall have 

power to grant uch relief as justice may require. 

(15) Volum,e R ebates.- To grant to any cu tomer any rebate or 

bonus based upon the total volume of purchases of such customer 

over a period of time, whether in the form of money or otherwise. 

This Section shall not be construed to prohibit bona fide quantity 

discounts. 

(16) Collect telegrams.- To absorb the transmittal cost of telegraph or telephone orders. 

(17) House Organs, Catalogs, etc.- To indulge in any practice by 

which members patronize advertisements or donation in the furtherance of customers' house organ , customers' catalog prepared by 

them, other than catalog sheets or catalog plates ordinarily supplied 

by the manufacturer except as may be authorized by the Administrative Committee. 

(18) Clinics.-To exhibit at any clinic, or show, either National 

or Local, except as may be authorized by the Adn1inistrative C01nmittee. If the Administrative Committee should deny authorization 

or should fail to take action upon any application for such authorization within fifteen days, the men1bers affected may appeal to the 

Admini trator, who shall have power to grant relief. 

(19) R eturned Goods.-(a) Except in ca e of breach of warranty 

or as may be otherwise provided by applicable State Law, to accept 

the return of group products except for merchandise credit. 

(b) Except in ca e of breach of warranty or as may be otherwise 

provided by applicable State Law, to allow the return of Group 

Product without a handling charge to the customer which adequately reflect the cost of rehandling, except when : 

(1) The cust01ner returns group products within 60 days 

from th date of purchase. 

(2) The cu tamer returns group products from an initial 

stock ord r purcha ed within one year prior to date of return. 

(20) Except as may be oth rwise pro, icled by the Administrative 

Committee, subject to the approval of the Admini trator, the provisions of this Code with regard to prices, discounts, deductions, 
11 

allowances, extras, commissions, and/ or terms of sales, shall not 

apply to direct export ales or to sales in course of export (i.e. sales 

destined ultimately for export) or to sales of materials used in the 

manufacture of products for export. 

(21) The provisions of this Article shall apply only to sales to 

the Trade Classifications in Paragraph 14 and to Trade Classifications established pursuant to the provisions of Paragraph 9 of this 

Article. 

ARTICLE V-GENERAL 

(1) No provision of this Code 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 

Administrator, be modified or eliminated upon proposal by the 

Product Group or any mBmber 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 provisions to this supplement or modifications thereof will be submitted 

by the Administrative Committee through the Code Authority for 

approval to prevent unfair competition in price and other unfair 

and destructive competitive practices and to effectuate the purposes 

of the Act. Upon approval by the Administrator after such notice 

and hearing as he 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 following 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) No member of this Product Group shall be held to have consented to any modification of this supplement or to any provision 

or interpretation of the National Industrial Recovery Act if declared 

unconstitutional by the Supreme Court of the United States. 

( 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 term "Effective Date" as used herein means the 10th day 

after this supplement shall have been approved by the President. 

Approved Code No. 105-Supplement No. 2 

Registry No. 1404-33. 

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