Approved Code No 105-Supplement No. 4 Registry No. 1404-46 

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 

' ... 

'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 
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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Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

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Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

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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 

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 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 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 annexed report on said Code, containing findings with respect thereto, having been made and 

directed to the President: 

No,v, 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 between 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 conditions 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 )· 
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 covering 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 members 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 sets 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) 
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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 organi~ation 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 supervision, 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 industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. 

(b) Said 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 respects with the pertinent provisions of said Title of said Act, 

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

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

the applicant Product Group is an · industrial association, truly 

representative of the aforesaid Industry; and that said Product 

Group imposes no inequitable restrictions on ad.Jnission to membership 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. 
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 Automotive 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 

( 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 manufactured by a manufacturer for use exclusively in his own finished 

product. 

"Member "-The term "Member" or "l\'Iember of the Product 

Group " as used herein includes, but without limitation, any inclividual, 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) 
5 

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-ArnurNISTRATION 

(1) (a) The Administrative Committee of the Group shall consist of six ( 6) members selected in accordance with the voting provisions 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 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, paragraph 3 (b). 

(2) The Administrative Committee of the Group is hereby designated to assist the Code Authority and the National Industrial Recovery 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 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 
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 necessary to support such budget shall be contributed by 

members of the Product Group; 

(3) After such budget 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 therefor 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 Administrative 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 expenses of its administration as hereinabove provided, ( unless duly 

exempted from making such contributions,) shall be entitled to participate in the selection of members of the Administrative Committee or to receive th~ benefits of any of its voluntary activities or to 

1nake use of any emblem or insignia of the National Recovery 

Administration. 

( c) The Administrative Committee shall neither incur nor 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 disapproval of the Code Authority and the National Industrial Recovery Board, haYe 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 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 transn1ittal 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 contrary to the public intBrest, the National Industrial Recovery Board 

1nay require that such action be suspended to afford an opportunity 

for investigation of the n1erits of such action and further consideration 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 unless 
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 such other information 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 Recovery 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 d 0 clared 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 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 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 activities 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 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 
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 subject to this Code shall furnish such statistical information 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 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 customers 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 worlrino- 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 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 specified 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 
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 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 destructive price cutting. From time to time, the Administrative Committee 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 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 become 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 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 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) 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. 
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 simultaneously distributed to all members 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 

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 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 revision, 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 agreement, understanding, combination or conspiracy to fix or maintain 

price terms, nor cause or attempt to cause any member o:f the Product 
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 orde1·s.-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 cancellation. 

(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) Def ective 1naterial.-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 warehouse 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 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 service 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 basis 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. 
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 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 provisions to this supplement 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 approYal 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 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) 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. 

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UNIVERSITY OF FLORIDA 

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