Approved Code No. 105-Supplement No. 5 Registry No. 1404-49 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE . OF FAIR COMPETITION 

FOR THE 

CARBURETOR 

MANUFACTURING INDUSTRY 

(A Product Group of the Automotive Parts and 

Equipment Manufacturing Industry) 

AS APPROVED ON OCTOBER 24, 1934 

U . . 

Wl DO O:JR PART, 

T 

UNITED STA TES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I I I 

I I 

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• 
Approved Code No. 105-Supplement No. 5 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

CARBURETOR MANUFACTURING INDUSTRY 

As Approved on October 24, 1934 

ORDER 

SuPPLEMENTARY ConE OF FAIR COMPETITION FOR THE CARBURETOR 

MANUFACTURING INDUSTRY 

A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFACTURING 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 o:f 

Fair Competition for the Carburetor Manufacturing Product Group 

of the Automotive Parts and Equipment Manufacturing Industry, a 

supplemental Code to the Basic Code of the Automotive Parts and 

Equipment Manufacturing Industry, and hearings having been duly, 

held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed to the 

President: 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise; 

does hereby incorporate by reference said annexed report and does 

find that said Code complies in all respects with the pertinent provisions and will promote the policy and purposes o:f said Title of 

said Act; and does hereby order that said Code of Fair Competition 

be and it is hereby approved. 

NATIONAL INDUSTRIAL RECOVERY BOARD, 

By G. A. LYNCH, Administ1·atime Offeoer. 

Approval recommended: 

BARTON w. MURRAY, 

Division Administrato1'. ~ . 

WASIDNGTON, D. c., 

October 934, 1934. 

93125°-1244-84-34 . (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

Automotive Parts and Equipment Manufacturing Industry covering Fair Trade Practices for the Carburetor lVIanufacturing Product 

Group, a Product Group of the said Industry, was submitted to the 

Administration on :March 20, 1934, by the Code Authority Committoo of Automotive Parts~ and Equipment Manufacturing Industry 

n~presenting approximately 90% of the total volume of sales and 

members of the Industry. 

The Hearing was conducted in Washington on June 26, 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. 

While the Product Group is nation-wide in character, it has not 

experienced any increase in the number of establishments during 

the past few years. 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supplementary Code. 

Article III establishes an Administrative Committee consisting of 

three Class "A" lVIembers elected by the Class "A" Members in accordance with the voting provisions provided in the By-Laws of 

Automotive Parts and Equipment :Manufacturers, Inc., and throo 

Class "B" Members elected by the Class "B" 11:embers in accordance with the voting provisions provided in the By-Laws of Automotive Parts and Equipment lVIanufacturers, Inc., the Secretary of 

the Code Authority Committee of Automotive Parts and E'luipment 

Manufacturers Inc., who shall be Chairman of the Administrative 

Committee with vote, and one non-voting member, to be appointed by 

the National Industrial Recovery Board. It also provides for the 

adoption of the labor provisions of the Basic Code and provides 

machinery for obtaining statistics and the administration of this 

Code. 

Article IV sets forth tlrn 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 

Sl.lpplementary 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. 

(2) 
3 

FINDINGS 

The Deputy Administrator in his final report to us on said Supplemental Code having found as herein set forth and on the basis 

of all the proceedings in this matter; . We find 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 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 gove.rmental 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 me as a major industry. 

( c) The Supplementing 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 admission to membership 

therein. 

( d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. 

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

eliminate or oppress small enterprises and will not operate to 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: 

OCTOBER 24, 1934. 

G. A. LYNCH, 

Admvnistrative Officer. 
SUPPLEMENTARY CODE OF FAIR C01\1PETITION FOR 

THE CARBURETOR MANUFACTURING INDUSTRY 

A PRODUCT GROUP 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, 1~33, 

the following provisions covering fair trade practices and the adm1nistration thereof are hereby established as the standards of Fair 

Competition for the Carburetor 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 lVianufacturing 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 and/or manufacture of carburetors including attachments 

which purposely affect the operation of the carburetor and/or component parts for original equipment and/or replacements on motor 

vehicles or any other vehicle or product, excepting, however, the 

production and/ or manufacture of such products when produced or 

manufactured by a manufacturer for use exclnsively in his own 

finished product. 

The term ":Member" or ":Member of the Product Group" as usecl 

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

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

production and/ or manufacture and/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' l\fembers" as used herein is defined to mean 

men1bers of the Product Group whose products are sold to manufacturers of motor vehicles or any other v1ehicle or product for original equipment and for service requirements thereon. 

The term " Class 'B ' l\1embers" as used herein is defined to mean 

members of the Product Group whose products are sold to customers 

other than buyers of original equipment for replacement of original 

equipment or parts thereof or as accessories for motor vehicles or any 

other vehicle or product. 

The term "Group" as u ed herein is defined to mean the Carburetor Manufacturing Group, a " Product Group " at present having its headquarters' office in Detroit, ~1ichigan. 

(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 designnted in the Code of F air Competition for the 

Automotive Parts and Equipment Manufacturing Industry. 

ARTICLE III-ADMINISTRATION 

(1) The Administrative Committee of the Group shall consist of: 

(a) Three Class "A" Members elected by the Class "A" ~1:embers 

in accordance with the voting provisions provided in the By-Laws of 

Automotive Parts and E quipment Manufacturers, Inc., and 

(b) Three Class " B" Members elected by the Class "B" Members in accordance with the voting provisions provided in the ByLaws of Automotive P arts and Equipment Manufacturers, Inc., and 

( c) The Secretary of the Code Authority Committee of Automotive Parts and Equipment Manufacturers Inc., who shall be Chair1nan of the Administrative Committee with vote. 

( d) 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. 

( e) Providing further that no member shall be represented in 

more than one group. 

The Administrative Committee shall be elected at the annual 

meeting of the Group. 

The first annual meeting of the Group was held at Detroit, Michigan, February 8, 1934, and shall be held annually thereafter on 

the first Thursday in December. 

The Chairman of the Administrative Committee shall have the 

power to call meetings of the Committee and shall be required to 

do so on the written request of three members of the Committee 

and within ten days from receipt of such requests. 

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 ha vie qualified as outlined in Article III, paragraph 3 (b). 

(2) The Administrative Committee is hereby designated to as--

sist 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 and to effectuate the policy of the 

Act, . the Administrative Committee is authorized, subject to the 

ap:.proval 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; 
6 

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

such no~ice ~nd opportunit1 t-0 b~ heard as he may deem necessary, 

(a) an 1tem1zed budget of_ its est1m'.1ted expens~s for the foregoing 

purposes, and (b) an eqmtable 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 contributions 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 mern.bers of the Product 

Group complying with the Supplement and contributing to the expenses of it administration as hereinabove p1'ovided, ( unless duly 

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

to make use of any emblem or insignia of the National Recovery 

Administration. 

( c) The Administrative Committee shall neither incur 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 £or expenditures in excess of prior budget 

estimates except those which the National Industrial Recovery Board 

shall have so appro,ed. 

( 4) ( a) The Administrative Committee shall, subject to the disapproval of the Code Authority and the National Industrial Recovery Board, 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 £or the administration and enforcement of this sup- plement; to cooperate with the National Industrial Recovery Board 

under rules and regulations as may be prescribed by it in regulating 

the use o:f any N. R. A. insignia, and in hearing and adjust~ng complaints; to initiate, consider, and recommend to the Code Authority 

for transmittal to the National Industrial Recovery Board further 

fair trade practice provisions to govern the members of this Product 

Group; and to discharge the other powers and duties providBd 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 interest, the National Industrial Recovery Board 

may require that such action be suspended to afford an opportunity 

for investigation of the merits of such action and further consideration by such Code Authority and/or the Administrative Committee or agency pending final action which shall not be effective 

unless the National Industrial Recovery Board approves or unless 
1 

it shall fail to disapprove after thirty days' notice to it of intention to proceed with such action in its original or modified form. 

( c) Each trade or industrial association directly or indirectly 

participating in the selection or activities of 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, organizat10n, and activities as the 

National Industrial Recovery Board may leem neces ary 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 o:f 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 o:f selection of the Administrabve Committee. 

( 5) All members of this Product Group hall be bound by the provisions o:f the Basic Code. For this purpose, the wage and hour 

provisions o:f the Basic Code are hereby declared to be a part o:f 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 provision is contained in this upplement: 

Every code of fair competition, agreement, and licen e approv d, 

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 representa6ves 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 seekina employment shall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and (3) that employers shall comply with 

the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

(6) The Administrative Committee shall cause to be formulated 

methods of cost finding and accounting capable of use by all members of the Product Group, and shall submit such methods to the 

National Industrial Recovery Board for review. If approved by the 

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 of cost which are designed to bring about arbitrary uniformity 

of costs or prices. 
B 

(7) The Administrative Committee shall be empowered to obtain 

from members of the industry such information and reports as are 

l'equired 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 necesEJary for the purposes recited in Section 8 (a) of the Act to such 

Federal and State agencies as he may designate; provided that 

nothing in this Code shall relieve any member of the industry of any 

existing obligations to furnish reports to any Government agency. 

No individual report shall be disclosed to any other member of the 

industry or any other party except to such other Governmental 

agencies as may be directed by the National Industrial Recovery 

;Board. 

ARTICLE IV-TRADE PRACTICES 

In addition to the provisions of Section C of Article VI of the 

Basic Code, the following described acts shall constitute unfair 

practices: 

(1) Costs and Price Owtting.-(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 

working conditions. The Administrative Committee shall within 5 

days afford an opportunity to the member filing and/or offering the 

price to answer such complaint and shall within 14 days make a 

ruling or adjustment thereon. If such ruling is not 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 costs in the determination of pricing policies. 

( c) 1v11en an emergency exists as to any e;iven product, sale below 

the stated minimum price of such product, 1n violation of the provisions of paragraph ( e) 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 adverrely 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 e:ff ectuate the 

purposes of the Act, the Administrative Committee may cause an 

impartial agency to investigate costs and to recommend to the 

National Industrial Recovery Board a determination of the stated 

minimum price of the product affected by the emergency and there-
9 

upon 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, he shall publish such price. 

Thereafter, during such stated period, no member of the Product 

Group shall sell uch 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 N ationn.l Industrial 

Recovery Board may cause any determinations hereunder to be 

reviewed or reconsidered and appropriate action taken. 

(2) lnac(JU;ra,ie Labeling.-To list, brand, mark, number or pack 

any products of the Product Group in any manner which is intended 

to or does deceive or mislead purchasers in some material particular, 

or the failure to brand such products for the purpose or with the 

effect of misleading or deceiving purchasers in some material particular with respect to such products (including, but without limitation, 

their brand, grade, quality, quantity, origin, size, substance, character, nature, finish, material content, or preparation). 

(3) Imitation of Trade-Marks.- To imitate or copy or use a competitor's trade-mark, marking, trade name, or part number with the 

purpose or effect of misleading or deceiving any purchaser or prospective purchaser. 

( 4) f nao(JUrate 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. 

(5) Price Gitaranty.-(a) To guarantee Product Group products 

against advance in price for a period greater than 60 days. (b) To 

guarantee Product Group products against decline in price. ( c) 

Clauses "a" and "b" shall not apply to original equipment contracts, or to existing after-market contracts made prior to December 

1, 1933, which by their terms, cannot be terminated, copies of such 

contracts to be filed with the Administrative Committee. 

( 6) 0 oercion.-To require that the purchase of any goods or 

products be a prerequisite to the purchase of any goods or products. 

(7) Design Piracy.-The Administrative Committee shall proceed 

immediately to prepare rules and regulations to prevent the piracy 

of the design of the products of this Product Group. After such 

rules and regulations have been approved by the National Indus- trial Recovery Board after such notice and hearing as he may prescribe same shall be binding upon all members of this Product 

Group. 

(8) Ewport.-The provisions of this supplement are not to apply 

to direct export sales and to sales in course of export ( i. e., sales 

destined ultimately for export) and to sales of materials used in 

the manufacture of products for export. 
10 

ARTICLE V-GENERAL 

(1) No prov1s10n of this supplement shall be so applied as to 

permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

(2) Such of the provisions of this supplement as are not required 

to be included herein by the Act, may, with the approval of the 

National Industrial Recovery Board, be modified or eliminated on 

the proposal by the Product Group or any member thereof if it 

appear that the public needs are not being served thereby and a,i 

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 effectuatB the purposes of the Act. Upon 

approval by the National Industrial Recovery Board after such 

notice and hearing as it may prescribe, such supplementary provisions or modifications shall become binding as a part of this 

supplement. 

( 4) As required by Section 10 (b) of Title I of the Act, the :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 10th 

day after it shall have been approved by the President. 

Approved Code No. 105--Supplement No. 5. 

Registry No. 1404-49. 

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