Approved Code No. 84-Supplement No. 54 Registry No. 1149-1-06 

U. 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

FILE MANUFACTURING 

INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON OCTOBER 9, 1934. 

WE DO OUR PART 

,... -- -

• 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I 

For sale by the Superintendent of Documents, Washington, D. C. - - - - • - - - Price 5 cent~; 
This publication Is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D. C., and by district offices of the Bureau of For ign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Buikling. 

Boston, Mass.: 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charle ton, S. C. : Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce 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. 

:Memphi., Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans. La.: Room 225-A, Customhouse. 

X e>T York, N. Y.: 734 Ou tombouse. 

Norfolk, Va.: 406 East Plume Street. 

Pbila<lelpbia. Pa.: 422 Commercial Trust Building. 

Pittsburgh. Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

Rt. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle. Wash.: 809 Federal Office Building. 

• 
Approved Code No. 84-Supplement No. 54 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

FILE MANUFACTURING INDUSTRY 

As Approved on October 9, 1934 

ORDER 

APPROVING SuPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE 

FILE MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANL"FACTURING AND 

:r.IETAL FINISmNG AND ::r.IETAL COATING IND"CS'-:i'RY 

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 and in accordance with the 

provisions of Section 1 of Article VI of the Basic Code for the Fabricated :Metal Products ~Ianufacturing and :Metal Finishing and 

~1etal Coating Industry, approved November 2, 1933, for approYal of 

a Supplementary Code of Fair Competition for the File ~1anufacturing Industry, and hearing having been duly held thereon; and 

the annexed report on said Supplementary 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 authority vested in it by Executive Orders of the President, including 

ExecutiYe Order No. 6859, and otherwise, does hereby incorporate 

by reference said annexed report and does find that said Supplementary Code complies in all re pects with the pertinent provisions 

and will promote the policy and purposes of said Title of said Act; 

and does hereby order that said Supplementary Code of Fair Competition be and it is hereby approved; provided, however, that the 

proYi ions of Article VI be and they are hereby stayed pending further Order of such Board; and provided further that the applicant 

shall amend its Articles of Association and By-laws to the satisfaction of the National Industrial Recovery Board within thirty 

(30) days after the effective date of this Supplementary Code. 

N ATIO:NAL INDUSTRIAL REco-vEnY BoARD, 

By G. A. LYNCH, Administrative Officer. 

Approval recommended : 

hiLBOURNE JOHNSTON, 

Acting Division Administrator. 

\V.A3liiXGTON, D. c., 

October 9, 1934 

004~2°----1244-27----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This i a report on the Supplementary Code of Fair Competition for the File Manufacturing Indu try a Division of the 

Fabricated Metal Products Manufacturing and :Metal Finishin<Y and 

Metal Coating Industry, the hearing having been conducted thereon 

in Washington, D. C., April 5, 1934, in accordance with the provi ions 

of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The File Manufacturing I ndustry, bein<Y truly representative of 

this Division of the Fabricated Metal P roducts Manufacturing and 

Metal Finishing and Metal Coating Industry, has elected to avail 

itself of the option of submitting a Supplementary Code of Fair 

Competition, as provided for in Section 1 of Article VI of the Basic 

Code, for the Fabricated Metal Products Manufacturing and Metal 

Finishing and Metal Coating I ndustry, approved by you on the 

second day of NoYember, 1933. 

RESUME OF THE CODE 

Article I tates the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Sup- plementary Code. 

Article III: This Industry is a Division of the Fabricated ~1 tal 

Products J\1anufacturing and Metal Finishing and Metal Coating 

Indu try and the labor provisions of its Basic Code as approved 

November 2, 1933, are the labor pro vi ions of thi Suppl m ntary 

Code. 

Article IV e tabli ·he a Supplementary Code Authority con i tin<Y 

of five ( 5) member , to be elected by the member of the Indu try 

at a meeting called by the Temporary upplementary Cod Anthori y, and give the Admini trator the authority to apr oint ne 

additional m mber without vote and provides machinery for obtain- in<Y tati tic an l the admini tration of the Supplem ntary de. Article V provides for formulation of cost finding and a onntintr 

methods ·apable of use by all members of the I n u -tr. . \ Vl.1 n 

approved by the Admini'"'trator, uch metho hall b utiliz d by 

the Indu try to th xtent found pra ticable. Article VI prohibit elling below co t a d t rmin l in a orclan e with Article V x ept to me t a competitor pri wh o t 

are lower under Arti le V; and :x pt that ropp line an(l e - ond may be sold without re triction · and e pt that after noti e 

(2) 
3 

to the Supplementary Code Authority, products of the Industry may 

be sold below cost to meet competition on products of equivalent 

design character, quality or specification manufactured outside the 

United tates. 

Article VII provides for the filing of prices with a confidential 

and disinterest ed agent of the Supplementary Code Authority and 

also provides for the filing of revised prices. 

Article VIII sets forth the unfair trade practices of this Supplementary Code, observance of which is designed to mitigate unfair 

competition in tllis Division of the Industry. 

Article IX defines the term "export" to include shipments to 

countries other than continental United States, and states that provisions of this Supplementary Code concerning pricing and marketing do not apply to export sales. 

Article X provides for modifications in accordance with subsection (b) of Section 10 of the Act, and also for modifications on the 

basis of experience. 

Article XI provides against monopolistic practices and the 

oppression of, or discrimination against, small enterprises. 

Article XII recognizes that price increases be limited to actual 

additional increases in the seller's costs. 

Article XIII gives the effective date and duration of this Supplementary Code. 

FINDINGS 

The Assistant Deputy Adm.inistrator in his final r eport to us on 

said Supplementary Code having found as herein set forth and on 

the basis of all the proceedings in this matter: 

We find that: 

(a) Said Supplementary Code is well designed to promote the 

policies and purposes of T1tle 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 organization 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 sanction and supervision, by- eliminating unfair competitiYe practices, by promoting 

the fullest possible utilization of the present productive capacity of 

indu tries by avoiding undue restriction of production (except as 

may be temporarily required) , by increasing the con. umption of 

indu tri al and agricultural products through increasing purchasing 

power by reducing and r elieving unemployment, by improving 

standard of labor, and by otherwise r ehabilitatino- industry. 

(b) S::ticl Industry normally employs not mar; than 50,000 entployees : and is not classified by me as a major industry. 

(c) Th upplementary Code as appr Yed complies in all re pects 

with the pertinent provisions of said Title of said Act, including 

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

Section 7, and Sub ection (b) of Section 10 thereof; and that the 

association is an industrial as ociation truly representative of the 

aforesaid Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 
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(d) The Supplementary Code is not designed to and will not 

permit monopoli or monopolistic practices. 

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

elimmate or oppre .. mall enterpri es and will not op rate to discriminate against them. 

(f) Tho e engag din other teps of the conomic pro e h ve not 

be n d prived of the right to be heard prior to approval of said 

Su pl mentary Code. 

For these rea on ther for , The National In u trial R covery 

Board approves thi Supplementary Code. 

Re pectfully, 

0 TOBER 9, 1934. 

NATIONAL L Jou TRIAL REcOVERY BoARD, 

G. A. LYNCH, Administrative Of!ice'r. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE FILE MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

~fETAL FINISHING AND METAL CoATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the File J\1anufacturing 

Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated ~fetal Products Manufacturing and Metal 

Finishing and Metal Coating Industry approved by the President of 

the United States on the 2nd day of November, 1933, and the provisions of this Supplementary Code shall be the standards of Fair 

Competition for such Industry and shall be binding upon every 

member thereof. 

ARTICLE II-DEFIKITIONS 

The term" File Manufacturing Industry", hereafter referred to as 

the Industry, is defined to mean the manufacture for sale of all types 

and shapes of files, including Swiss P attern files, rasps, riffiers, 

scrapers file bru hes and handles, excepting manicure files, rotary 

files and burs. 

The term "employee" as used herein includes anyone engaged in 

the Industry in any capacity receiving con pensation for his servjces, irrespective of the nature or method of payment of such compen ation. 

'The term "employer " as used herein includes anyone by whom 

any such employee is compensated or employed. 

The term " member of the Industry " as used herein includes, but 

without limitation, any individual, partnership, association, corporation or other form of enterprise engaged in the Industry either as an 

employer or on his or its own behalf. 

The terms "President", "Act", "Administrator" as used herein 

shall mean respectively the Pre ident of the United States, Title I 

of the National Indu trial Recovery Act, and the Administrator for 

Industrial Recovery. 

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

Ba ic Code of Fair Competition f or the Fabricated ]\fetal Products ~1anufacturing and Metal Finishing and ~1etal Coating Industry, as 

approved by the President on the 2nd day of November, 1933. 

The term "Supplementary Code Authority" as used herein, is 

defined to mean the agency to admini ter the Supplementary Code. 

The term " Supplementary Code Committee," as used herein is 

defined to mean the Executive Committee of the Association. 

(5) 

I 
6 

The term 'Association" as used herein is defined to mean the File 

Manufacturers Association of the United States or its succes or. 

The term ' Secretary " as u eel herein, is defined to mean the 

Secretary of the Supplementary C<Jde Authority. 

ARTICLE III-EMPLOYMENT PROYI IONS 

This Indu try is a clivi ion of the Fabricat d Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, and 

without limitation the wage, hour and labor provi ions in Article 

III of its Basic Code a approved by the Pre ident November 2nd, 

1933, including Section I of said Article III, by which the provisions 

of subsection 1, 2 and 3 of Section 7 (a) of Title I of the Act are 

made conditions of this Code, are specifically incorporated herein 

and made part hereof as the wage, hour, and labor pro vi ion of this 

Supplementary Code. 

ARTICLE IV-ORGANIZATION AND ADMINISTRATION 

SEcTION 1. During the period not to exceed sixty (60) days following the effective date of this Supplementary Code, the Supplementary Code Committee of the Industry shall constitute a Temporary Supplementary Code Authority until the Supplementary 

Code Authority is elected. There shall be constituted within the 

siA'iy-day period a Supplementary Co.de Authority con isting of 5 

member to be elected by the members of the Industry, at a meeting 

called by the Temporary Supplementary Code Authority, upon ten 

days' notice sent by registered mail to all members of this Industry 

whose names may be ascertained after diligent search, who may vote 

either in person or by proxy. The members of the Supplementary 

Code Authority first elected shall serve until the following Annual 

1\feeting of the Association, and thereafter, members of the Supplementary Code Authority shall be elected by the members of the Industry at a meeting of the Industry to be held at the time and place 

of each Annual :Meeting of the Association to serve until the foil w -

ing Annual1\1eeting. 

The members of the Supplementary Code Authority hall be 

elected in the following manner: 

(a) One (1) member of the Industry who i not a member of the 

Association el cted b} majority vote of the non-members of th Association, present in person or repre ented by proxy, ach member 

to have one vote; 

(b) Two (2) member who hall be member of th Indu try 

elected by a majority vote of the member of the A sociation pre ent 

in person or represented by proxy, each m mber to ha e one ot ; 

(c) Two (2) members by a 51% vote of members of the A o iation present in per n or bv proxy w ighted on the b is of one ( 1) 

vote for $25.00 of Annual due · pr vid d, however, that no one 

membership may a t more than (2-%) of the total number of Yotes 

authorized. 

A vacancy in the membership of the Supplementary Code Authority shall be filled y majority vote of the remaining memb r of the 

Supplementary Code Authority. Provid d, ho' ever, that the In m-
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her of this Supplementary Code Authority who is chosen to fill such 

vacancy shall be selected from the same class of membership in which 

the vacancy occurred. 

In addition thereto the Admini trator may appoint a member of 

the upplementary Code Authority who shall be without vote and 

shall er\e without expen e to the Industry. The representative 

who may b appointed by the Administrator shall be giv n reasonable notice of and may sit at all meetings of the Supplementary 

ode Authority. 

SEcTION 2·. Each Trade A ociation directly or indirectly participating in the selection or activities of the Supplementary Code Authority hall (1) impo e no inequitable restrictions on admi ion 

to member hip, and (2) shall use due diligence in submitting to the 

Adn1inistrator true copies of its Article of A sociation By-Laws, 

Regulation and any amendments when made thereto, together with 

uch other information a to membership, organization, and activities a the Admini trator may deen1 nece ary to effectuate the 

purpo es of the Act. 

S:ccTioN 3. In order that the Supplementary Code Authority shall, 

at all time , be truly representative of the Indu try and in other 

re pect comply with the provisions of the Act, the Administrator 

may pre cribe such hearing as he may deem proper; and, thereafter, 

if he hall find that the Supplementary Code Authority is not truly 

repre entative or does not in other respects comply with the proviion of the Act, may require an appropriate modification of the 

Supplementary Code Authority. 

'EcTION 4. It being found neces ary in order to support the Admini tration of this Supplementary Code and to maintain the standard of Fair Competition e tablished hereunder and to effectuate the 

policy of the Act the Supplementary Code Authority is authorized:-

(a) To incur uch rea onable obligations as are necessary and 

proper for the foregoing purposes and to meet such obligations out 

of fund which may be raised as hereinafter provided and which 

shall be held in tru t for the purpo es of the Supplementary Code; 

(b) To submit to the Administrator for his approval, subject to 

such notice-and opportunity to be heard as he may deem necessary:-

1. An itemized budget of its estimated expenses for the foregoing 

purposes, and 

2. An equitable ba is upon which the funds necessary to support 

such budget hall be eontributed by members of the Industry. 

(c) After uch budget and basi of contribution have been approved by the Admini trator to determine and obtain equitable eontribution as above et forth by all members of the Industry, and to 

that end if nece sary, to institute legal proceeding therefor in its 

own name. 

Each member of the Indu try shall pay his or its equitable contribution to the expen es of the maintenance of the Supplementary 

Code Authority, determined as hereinabove provided, and subject 

to rule and regulation pertaining thereto is. ued by the Administrator. Only members of the Industry complying with the Supplementary Code and contributing to the expenses of its Administration as hereinabove provided, unless duly exempted from making 

such contributions, shall be entitled to participate in the selection 
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o£ members of the Supplementary Code \..uthority 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. 

The ode Authority shall neither incur nor pay any obligation 

sub tantially in xce of the amotmt thereof as estimated in its 

approved budget, and hall in no event exceed the total amount contained in the appro ed budget except upon approval of the Administrator; and no ubsequent budget shall contain any deficiency item 

ior expenditures in excess of prior budget estimates except those 

which the Administrator shall have so approved. 

SECTION 5. Nothing contained in this Supplementary Code shall constitut~ the member of the Supplementary Code Authority partners for any purpo e. Nor shall any memb r of the Supplementary 

Code Authority be liable in any manner to anyone for any act of 

any other member, officer, agent or employee of the Supplementary 

Code Authority, nor shall any member of the Supplementary Code 

Authority, exerci ing rea onable diligence in the conduct of his 

duties hereunder, be liable to anyone for any action or omission to 

act under this Supplementary Code, except for his own wilful 

malfeasance or nonfeasance. 

SECTION 6. The Supplementary Code Authority shall also from 

time to time furnish to the Basic Code Authority, designated in said 

Ba ic Code, such information as may be required to be furnished 

under the terms of said Basic Code. 

SECTION 7. If the administrator believes that any action of the 

Supplementary Code Authority, or any agency thereof, is unfair 

or tmjust or contrary to public interest, the Administrator may require that such action be su pended to afford an opportunity for 

investigation of the merits of such action. Further action by such 

Supplementary Code Authority or agency regarding the matter com-

:glained of, may be taken if approved by the Administrator but shall 

not be taken if disapproved by the Administrator within 30 days' 

notice to him of intention to proceed with such action. 

POWERS AND DUTIES 

SECTION 8. Subject to such rules and regulations as may be i · ued 

by the Administrator, the Supplementary Code Authority shall have 

the following powers and duties, in addition to those authorized by 

other provi ions of this Supplementary Code. 

(a) To in ure the execution of the I rovi ion f thi Sur plementary ode and to proYide for the compliance of the Indu try with 

the provi ions of the Act. 

(b) To adopt By-Laws and Rules and Regulations for it procedure in the admini tration of this upplementar "ode. 

(c) To obtain from members of the Inclu try n h inf rmation 

and report as are r quired for the a lmini trati n of the Supplementary "ode. In addition to information r quir d to b ubmitted t the Suppl mentar) de Authorit. m mb r of th Industry ubj ·t to thi: up1l m ntary lc hall furni h u h -tatistical information as the Admini trat r may d m n c s ary for 

the purposes recited in Section 3 (a) of th Act to u h ~ d ral and 

State Agencies as he may desiO'nate; pro ided that n hing in this 
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Supplementary Code shall relieve any member of the Industry of 

any existing obligation to furnish reports to any government agency. 

No individual report shall be disclosed, without consent in writing 

of the member making the report, to any other men1ber of the In- . dustry or to any one other than the Administrator or his duly authorized representative. 

(d) To use such trade associations and other agencie a it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Supplementary 

Code Authority of its duties and responsibilities under this Supplementary Code and that such trade associations and agencies shall 

at all times be subject to and comply with the provision hereof. 

(e) To make recon1mendations to the Administrator for the coordination of the admini tration of this Supplementary Code with 

such other codes, if any, as may be related to the Industry. 

(f) To recommend to the Administrator further fair trad~ practice provisions to govern members of this Industry in their relations 

with each other or with other industries and to recommend to the 

Administrator measure for industrial planning, including stabilization of employment. 

(g) To appoint a Trade Practice Committee which hall meet 

with the Trade Practice Conunittees appointed under uch other 

Codes as may be related to the Industry for the purpose of formulating fair practices to govern the relationships between production 

and distribution employers under this Code and under such others 

to the end that such fair trade practices may be proposed to the 

Administrator as am.endments to this Code and such other codes. 

(h) To provide appropriate facilities for arbitration of differences between members of the Industry and, subject to the approval 

of the Administrator to prescribe rules of procedure and rule to 

effect compliance with awards and determination. 

(i) Every employer shall provide for the safety and health of 

employees during the hours and at the places of their employment. 

Standards for safety and health hall be ubmitted by the Supplementary Code Authority to the Administrator within three months 

after the effective date of this Code. 

SECTION 9. To the extent permitted by the Act and subject to 

such rules and regulations as the Administrator may prescribe, any 

and all information furnished to the Supplementary Code Authority 

by any member of this Industry pursuant to the provisions of this 

Supplementary Code shall be subject to verification by an impartial 

agency agreed upon by the Supplementary Code Authority and the 

member of the Industry in question, and, failing such agreement, 

such impartial agency shall be selected by the Administrator, which 

impartial agency may che"k so n1uch of the pertinent books, accounts, 

and records of such member of the Industry as may be required to 

verify the accuracy of the information so furnished. 

SECTION 10. To the extent permitted by the Act and subject to 

such rules and regulations as the Administrator may prescribe, the 

Supplementary Code Authority shall have the power to investigate 

all complaints of alleged violatiOn of this Supplementary Code filed 

with it by one member of this Industry against another n1ember of 

the Industry. 
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ARTICLE V-AccouNTING AND CosTING 

The Supplementary Code Authority shall cau e to be formulated 

method of cost findino- and accounting capable of use by all members of the Industry and shall submit uch methods to the Administrator for review. If approved by the Administrator, full information concerning such methods hall be made available to all memb rs 

of this Industry. Thereafter, each member of this Industry shall 

utilize such methods to the extent found practicable. Nothing herein 

contained shall be construed to permit the Supplementary Code 

Authority, any agent thereof, or any member of this Indu try to 

suggest uniform additions, percentages, or diff rentials or other 

umform items of cost which are designed to bring about arbitrary 

uniformity of costs or prices. 

AnTI LE VI-SELLING BELOW CosT 1 

No member of the Industry shall sell or exchange or offer to sell 

or exchange any product of the Industry at a price, or upon terms 

and conditions, which will result in the purchaser paying for the 

goods received less than the cost to the seller as det~rmined on the 

basis of the principles outlined in the standard methcd of accounting referred to in Article V, above; provided that any member may 

meet the prioe competition of any other member who e costs under 

Article V are lower; provided further that over-stocks of discontinued lines and accumulations of seconds, of shapes and sizes not 

readily marketable, may be sold without restriction as to di count 

provided they are bona fide goods of these classes only; and further 

provided, that any member of the Industry may, upon giving prior 

notice to the Supplementary Code Authority, sell below his costs 

in order that he may meet competition from products of equivalent 

design character, quality, or specifications, manufactured outside the 

United States. 

AnnCLE VII-OrEN PnrcE FrLI:NG 

SI~CTION 1. Each member of the Indu try hall file with a confidential and di interested ag nt of the Supplementary ode t\..uthority 

an identified net price list or price lists and discount sheet including 

all other terms and conditions of sale for ·uch products a the 

Supplementary Code Authority may pre cribe. Said price terms 

shall in the first in tance be filed within fifteen (15) da s after the 

date of approval of this provi. ion. Price t rm. and r vi d price 

terms ·hall become ffective immediately npon r ceil t th reof by 

said agent. Im1nediately upon r cei t thereof aid ao· nt hall by 

telegraph or other equally prompt means notify ~ ai l member of 

the time o£ uch receipt. Such lists and revisions, t gether with the 

effective time thereof, shall upon receipt be in1mediat ly an imultan ou ·ly di tribut d to all m mber of the In u ·tr. and t all of 

their cu. tom rs who have appli d ther f r and hav off r d to d fray 

the cost actually incurred by the upplem ntary Code Authority 

1 See paragraph 2 of order approving thi. Code. 
11 

J.n the preparation and distribution thereof and be available for 

inspection by any of their customers at the office of such agent. Said 

li ts or revisions or any part thereof shall not be made available to 

any person until released to all members of the Industry and their 

cu tamers, as aforesaid; provided, that prices filed in the fir t instance hall not be released until the expiration of the afore ·ni l 

fifteen (15) da. ' period after the approval of this Supplementary 

Code. The Supplementary Code Authority shall maintain a permanent file of all price term filed as herein provided, and shall not 

de troy any part of such records except upon written con ent of the 

Admini trator. Upon request the Supplementary Code Authority 

hall furnish to the Admini trator or any duly designated agent 

f the Admini trator copies of any uch list or revi ion of pri e 

term. 

BECTION 2. When any member of the Industry ha filed any revi ion, such member hall not file a higher price within forty-eight 

( 48) hour . SECTION 3. No member of the Industry shall sell or offer to sell 

any products of the Industry for which price terms have been filed 

pur uant to the provi ion of this Article, except in accordance with 

such price terms. . SECTION 4. No member of the Indu try shall enter into any agreement, understanding, combination or conspiracy to fi:s: or maintain 

price terms, nor cause or attempt to cause any member of the Indu -

try 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 Article to create. 

ARTICLE VIII-UNFAIR TRADE PRACTICE 

Superseding all unfair trade practices set forth in Article V of 

the Ba ic Code, the following described acts shall con titute unfair 

practices. Any member of this Industry who shall directly, or indirectly through any official, a~ent, or representative fail to comply 

with any of the following rules of competition shall be deemed to 

have violated the Supplementary Code. 

RULE 1. No member of the Industry shall "·ithhold from or in ert 

in any invoice a false record, wholly or in part, of the transaction 

represented on the face thereof, or make payment or allowance of 

secret rebates ecret refund ecret credits, unearned eli counts 

(whether in the form of money or otherwise) , or the extension to 

certain purchaser of prices, ervices, or privilege not fXtended to all 

purchaser under like condition. 

RULE 2. No member of the Industry shall defame a competitor 

by falsely imputing to him di honorable conduct, inability to perform contracts: que. tionable credit standing, or by other false repreentation or by faLely dispara ing the grade or quality of his goods. 

R LE 3. X o member of the Industry shall imitate or simulate the 

trade mark, trade name, package, \\rapper, or label of a competitor's 

product io such a degree as to deceive or have a tendency to deceive 

cu -tamers. 

RULE 4. No member of the Indu try shall give, permit to be given, 

or offer to give anything of 'alue for the purpose of influencing or 
12 

re arding the action of any employ e, agent, or representative of 

another in relation to the bu ine s of the employer of such employee, 

the principal of su h agent or the repre ented party, without the 

lmowl dge of such employer, prin ipal or party. This provision 

shall not be construe l to prohibit fr e and g neral distribution of 

articles commonly u ed for aclverii ing xcept o far a uch articles 

ar actually u ed for commer cial bribery as hereinabove defined. 

R LE 5. No men1ber of the Indu try shall brand or mark or pack 

any good in any mann r which is intended to or does deceive or 

n1i lead purcha ers with respect to the brand, grade, quality quantity, ize, substance, character, nature, finish, material, content or 

preparation of such aoods. 

RULE 6. No memb r of the Industry hall publi h adv rti ing 

(whether printed, radio, display or of any other nature), which is 

mislcadinb or inaccurate in any material particular, nor shall any 

1nember in any way misrepresent any goods (includin~ but without 

limitation its use, trade mark, grade, quality, quantity, size, substance, character, nature finish, material, content or preparation) 

or credit ten11s, values, policies, services, or the nature or form of the 

bu ines conducted. 

R LE 7 .. No member of the Industry shall cancel in whole or in 

part, or permit the cancellation in whole or in part of any contract 

of sale of n,ny product, except for justifiable cause or a fair consideration, or unle s approved by the Supplementary Code Authority. 

RULE 8. No member of the Industry shall wilfully induce or 

attempt to induce the brea h of existing contracts between competitors and their customers by any false or deceptive mean , or 

mterfere with or obstruct the performance of any such contractual 

duties or services by any such means, with the purpose and effect of 

hampering, injuring or embarrassing competitors in their business. 

RuLE 9. No n1ember of the Industry shall offer to o·ive to any 

purchaser of any product any guaranty or prot~ction in any form 

against decline after the date o£ shipment in the market price o£ 

such product. 

RULE 10. No member of the Industry shall make contracts for 

periods in excess of six months (all contracts to expire not later than 

the last days of June, or December) ; or quote on or make any 

contract more than thirty (30) days prior to the first day of the 

calendar period covered by the contract; or ship pursuant to any 

contract morB than fift een (15) days after the expiration thereof; 

or as c:-oon thereafter as the member o£ the Industry can manufacture 

and ship the products of the Industry covered by the contract; or 

make contracts containing an option o£ ext n ion or renewal on the 

part of either buyer or eller. 

R ULE 11. No member f the Inclnstrv shall sell or offer to sell 

commodities other than products of this Industr. for the purpose of 

influencing a sale, at pric s below the invoice price plus all inCid ntal 

cost of h products. If and whon the product of this In ustry 

are c-old in combination with products of other Indu tric , the invoice 

Jnu -t -learlv how the unit 1 ri for all arti l li ted. 

R u LE 12.' No memh r of tlw Industry haJl offer or aive t rm of 

payment more favorable than thirty (30) days net or two (2) per ent 

discount for payment on or before the tenth of the month following 
13 

month of invoice date, which shall in all cases be the same as 

shipping date. 

RuLE 13. No member of the Industry shall a cept orders for 

broken packages unless an additional charge for special handlina ]s 

made therefor. 

RULE 14. No member of the Indu try shall to the best of his knowledge make any allowance for unju t claims, alleged shortages breakage damage, or on account of any other condition not actually 

existing. 

RULE 15. No member of the Industry shall, fr01n and after the 

effective date of this Supplementary Code, deliver any product of 

the Industry on consignment except under circumstances to be 

defined by the Supplementary Code Authority and approved by the 

Administrator where peculiar circumstances of the Indu try require 

the practice. 

ARTICLE IX-EXPORT 

The prov1s10ns of this Supplementary Code concerning pncmg 

and marketing are not to apply to direct export sales of any product, 

or to sales of any product destined ultimately for export. The term 

"export" shall include shipments to countries other than continental 

United States. 

ARTICLE X-MODIFICATION 

SEcTioN 1. This Supplementary Code and all the provisions thereof 

are expressly made subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the 

Act from time to time to can-cel or modify any order, approval, 

licen e, rule, or regulation issued under Title I of said Act. 

SECTION 2. This Supplementary Code, except as to provisions required by the Act, may be modified and/ or amended on the basis 

of experience or changes in circumstances ; such modifications and/ or 

amendments to be based on application to the Administrator by the 

Supplementary Code Authority or other repre entative group within 

the Industry, and such notice and hearing as he shall specify; and to 

become effective as part of this Code on approval by the President. 

ARTICLE XI-MoNOPOLIEs 

No pro vi ion of this Code shall be o applied as to permit monopolie · or monopolistic practices, or to eliminate, oppress or discriminate against mall enterprises. 

ARTICLE XII-PRI E INCRE SES 

\Yherea the policy of the Act to increase real purcha. ing power 

will b made more difficult of consummation if prices of goods and 

·ervice · in rease as rapidly as wages, it i recognized that price increa except uch as may be required to meet individual cost should 

be delayed, but when made such increases should, so far as possible, 

be limited to actual additional increa es in the seller's costs. 
14 111 11 111111111ii ~~ i1 1ir'fl f111 f11i11 ~ 11 1 ]1111 11111 11111 1 

3 1262 08856 1161 

ARTICLE XIII-EFFECTIVE D TE 

This Supplementary Code shall become effective 12:01 o'clock 

A. M. Eastern Standard Time on the tenth day after it is approved, 

and shall continue in effect until June 16, 1935, or the earliest date 

prior thereto on which the President shall, by proclamation, or the 

Congress shall, by joint resolution, declare that the emergency 

recognized by Section 1 of the Act has ended. 

Approved Code No. 84-SUl)plement No. 54. 

Registry No. 1149--1-06. 

0