Approved Code No. 105-Supp)emeut No. 6 Registry No. 1404-51 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

OIL FILTER 

MANUFACTURING INDUSTRY 

u 

(A Product Group of the Automotive Parts and 

Equipment Manufacturing Industry) 

AS APPROVED ON OCTOBER 26, 1934 

WE DO OUR PART 

, . . . -

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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( 
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Approved Code No. 105-Supplement No. 6 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

OIL FILTER MANUFACTURING INDUSTRY 

As Approved on October 26, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE OIL FILTER 

J\1ANUFACTURING 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 of 

Fair Competition for the Oil Filter Manufacturing Product Group 

of the Automotive Parts and Equipment :Manufacturing Industry, a 

supplemental Code to the Basic Code of the Automotive Parts and 

Equipment J\,fanufacturing Industry, and hearings having been duly 

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

President: 

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

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

Executive Order No. 6859 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 

policies and purposes of said Title of said Act; and does hereby 

order that said Code of Fair Competition be and it is hereby approved, provided, however, that the pro vi ions of Article IV, paragraph (8), entitled Special Brands, be and they hereby are stayed 

pending its further order. 

NATION AL INDUSTRIAL R:0covERY Bo.A.Ro, 

By G. A. LYNCH, Ad1ninistrative Officer. 

Approval recommended: 

BARTON W. J\1uRRAY, 

Divi8'ion Administrator. 

WASHINGTON, D. c., 

October 26, 1934. 

94039°-1244-104-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

T he White House. 

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

Automotive Parts and Manufacturing Industry covering Fair Trade 

Practices for the Oil Filter 1\1:anufacturing Product Group, a Product Group of the aid Industry, was submitted to the Administration on :March 22, 1934, by the Code Authority Committee of Automotive Parts and Equipment Manufacturing Industry, representing 

approximately 90% of the total volume of sales and 50% of the 

members of the Industry. 

The Hearing was conducted in Washington on June 25, 1934, and 

the Supplement was revi ed July 20, 1934, and is ubmitted in its 

present form for appro,al. Every person who requested an appearance was properly hear l in accordance with the statutory and regulatory requirements. 

"'\Vhile the Product Group is nation-wide in character, it has not 

experienced any increa e in the number of establishments during the 

pa t few year . 

ARTICLE I states the purpose of the Supplementary Code. 

ARTICLE II ac"urately defines specific term employed in the 

Supplementary Code. 

ARTICLE III establishes an Administrative Comn1ittee consisting of five ( 5) 1nembers elected in accordance with the voting provision provided in the By-Laws of utomoti, e Part and Equipment l\1anufacturer , Inc., and one nonvoting member, to be appointed by the National Industrial Recovery Board. The wage and 

hour provision of the Ba ic Code are adopted. It also provides 

machinery for obtaining tati tics and the administration of the 

Code. 

ARTICLE IV sets forth the fair trade practices of this Supplementary Co le, which has been e pecially designed to effect fair 

co-inpetition in this Product Group of the Industry. 

ARTICLE V provid s against monopolies and monopolistic practice and provides for the submission of supplementary provisions 

to thi Supplementary Code or modifications thereof, and contains 

the mandatory provisions contained in Section 10 (b) of Title I of 

the Act, and state the effective date of the Supplementary Code 

shall mean the tenth day after it has been approved. 

FINDINGS 

The Deputy Administrator in his final report to the National Industrial Recovery Board on said Supplemental Code having found as 

herein set forth and on the basis of all the proceedings in this matter: 

The National I ndustrial Recovery Board finds that: 

(2) 
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(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 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 increac:'ing 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 the National Industrial Recovery 

Board as a major industry. 

( c) The Supplementary Code us 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 w~ll 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: 

O CTOBER 26, 1934. 

G. A. LYNCH, 

.A.d1ninistrative Officer. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE OIL FILTER 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, 1933, the 

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

Competition for the Oil Filter ~1anufacturing Product Group, which 

has been organized as an administrative unit under the Original 

Equipment and Replacement Parts Divisions of the Automotive 

P arts and Equipment Manufacturing Industry, and shall be binding 

upon eYery member of said Product Group. 

ARTICLE II-DEFINITIONS 

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

production and/ or manufacture, assembly, importation, reconditioning and/ or rebuilding for sale of lubricating oil filters, excepting, 

ho-\YeYer, the production and/or manufacture of such products when 

produced or manufactured by a manufacturer for use exclusively 

in hi · own finished product. 

The term '' ~1ember :, or "~1:ember of the Product Group ' as 

used hernin includes, but without limitation, any individual, partnership, a · o ·iation, corporation, or other form of enterprise engaged 

in the production and/ or manufacture, assembly, importation, reconditioning and/ or rebuilding for sale 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 "Group" is defined to mean the Oil Filter Manufacturing Group, a " Proclu t Group " a herein lefined, at present having its headquarters office in Detroit, :Michigan. 

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

Code of Fair Competition for the Automotive Parts and Equipment 

Manufacturing Indu try, 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 

AutomotiYe Parts and Equipment ~1:anufacturing Industry. 

(4) 
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ARTICLE III-AnMINISTRA TION 

(1) (a) The Administrative Committee o:f the Group shall con 1 

sist of Five ( 5) members elected in accordance with the voting provisions provided in the By-Laws o:f Automotive Parts and Equipment ~1anufacturers, Inc. 

(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. 

Not more than one (1) representative of a member of its affiliate 

or subsidiary shall be elected to serve on the Administrative Committee at the same time. 

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 22, 1934, and shall be held annually thereafter in the month of J anuary at such place and time as 

shall be determined by the Administrative Committee. 

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. 

The Chairman of the Administrative Committee shall have the 

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

so on the written request of two members of the Committee and within 

ten days from receipt of such requests. 

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 uch Group meetings within two weeks of_ receipt 

of written request for such meetings from five ( 5) members of the 

Uroup who have qualified as out]ined 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 et forth and the provisions of the Ba ic 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 tanclards of fair 

competition e tablished hereunder and to effectuate the policy of the 

Act, the Administrative Committee is authorized, subj ect to the approval of the N ation:il Industrial Recovery Board: 

( 1) To incur such reasonable obligat1ons as are necessary and 

proper for the foregoing purpose and t o meet nch obligations out 

of funds which may be raised a hereinnfter provided and which shall 

be held in tru t for the purpo es of the Supplement; 

(2) To submit to the National Industrial Recovery Board for approval, subject to such notice and opportunity to be heard as they 

may deem nece" ary, (a) an itemized budget of its e,timated expenses 

for the foregoing purposes, and (b) an equit able 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 Inclustri u l Recovery Board, to determine 
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and obtain equitable contribution as above set forth by all members 

of the Product Group, and to that end, if necessary, to institute 

legal proceedings therefore in its own name. 

(b) Each member of the Product Group shall pay his or its 

equitable contribution to the expenses of the maintenance of the 

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 hereinabovc 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 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 a pp roved 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 sub equent budget shall contain any deficiency item f or 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 or modification by the Code Authority and the National 

Inclu trial Recmrery Board, have the power to adopt by-laws and 

rules and regulations for its procedure and to obtain from members, 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 1nay be prescribed by them in 

regulating the use of any N. R. A. insignia and in hearing and adjusting complaints; and to initiate, consider, and rec01nmend tQ the 

Code Autho1·ity fnrther fair trade practice provisions to govern 

the members of this Product Group. 

(b) If the National Indu trial Recovery Boa.rd shall det0 rmine 

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 inter st, the National Industrial Recovery Board 

may require that such action be uspended 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 any agency thereof pending final action which shall not be effective unle s the National Industrial Recovery Board approves or 

unless he shall fail to disapprove after thirty days' notice to him 

of intention to proceed with such action in its original or modified 

form. 

( c) Each trade or ·industrial association directly or indirectly 

participating in the selection or activities of the Administrative Committee shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the National Industrial Recovery Board true 

copies of its articles of association, by-laws, regulations, and any 

amendments when made thereto, together with such other informa-
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tion as to membership, organization, ·and activities as the National 

Industrial Recovery Board may deem necessary to effectuate the purposes of the Act. 

( d) I n 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 ma1 prescribe such hearings as they may deem 

proper; and thereafter If they shall find that the Administrative 

Comn1ittee 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 Adn1inistrative 

Committee. 

( 5) All members of this Product Group shall be bound by the 

provisions of the Basic Code. For this purpose, the wage and hour 

provisions of the Basic Code are hereby declared to be a part of this 

Supplement. In case of a.ny 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 Supplement: 

(a) Every code of fair competition agreement and license approved, 

prescribed, or issued under this title shall contain the following conditions: (1) That employees shall have the right to organize and 

bargain collectively through representatives of their own choosing, 

and shall be free from the interference, restraint, or coercion of em- ployers of labor or their agentf:; in the de ignation of c::uch repre entatives or in self-organization or in other concerted activitie for 

the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment hall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizing, or assisting a labor organiza- tion 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 u. e by all mem- bers of the Product Group, and shall ubmit such method to the 

National Indu trial Recovery Board for review. If approved by 

the National Indu trial Recovery Board, full information concerning such methods shall be made available to all member of the 

Product Group. Thereafter, each member of the Product Group 

shall utilize snch methods to the extent found practicabl". Nothing 

herein contained shall be construed to permit the Administrative 

Committee, any agent thereof, or any member of the Pro 1uct Group 

to suggest uniform addition , percentages or differential or other 

uniform items of cost -which are designed to bring about arbitrary 

uniformity of costs or prices. 

(7) The Administrative Committee shall be empowered to obtain 

from members of the industry such information and reports as are 

required for the administration of the Code. In addition to information required to be submitted to the Code Authority, members o-f 

the industry subject to this Code shall furnish such tatistical information as the N ationa.l Industrial Recovery Board may deem necessary for the purposes r 0 cited in Section 3 (a) of the Act to such 
8 

Federal and State no-encies as it may desiO'nate; provided that nothing in this Code hall 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 1nay be directed by the National Industrial RecoYery 

Board. 

ARTICLE IV-TRADE PRACTICES 

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

Basic Code, the following described acts shall con titute unfair 

practices : 

(1) Oosts and Price Outting.-(a) Wilfully destructivelrice cut- ting is an unfair method of competition and is forbidden. ny 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 five ( 5) 

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

price to answer such complaint and shall within fourteen (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 r ecommendation thereon to the National 

Industrial Recovery Board. 

(b) VVhen no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. 

( c) When an emergency exists as to any given product sale b low 

the tated minimum price of such product, in 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 adversely affecting small enterprises or 

wages or labor conditions, or tending toward monopoly or other 

acute conditions which t ncl 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 i nece ary 

to mitigate the conditions constituting such emergency and to effectua.te the purpo es of the Act, the Admini trative Committee may 

cause an impartial agency to investigate costs and to recommend to 

the National Industrial Recovery Board a determ:nation of the 

stated minimum price of the product affected by the emergency and 

thereupon the National Industrial R0 "overy Board may proce/ld to 

determine such , ta.tecl minimum price. 

(e) "\Vhen the National Indu trial Recovery Board shall haYe 

determined uch stated mjnimum price for a specified product for a 

stated period, which price shall be rea onably calculated to mitigate 

the conditions of such emergency and to effectuate the purposes of 

the National Industrial Recovery Act, it shall publish such price. 
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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) Oo111,1nerc·lal Bribery.-To give, perm.it to be given, or directly 

offer to give, anything of value for the purpose of influencing or 

rewarding the action of any employee, agent or representative of 

another in relation to the business of the employer of such employee, 

the principal of such agent or the repre ented party, without the 

knowledge of such employer, principal or party. Commercial bribery 

provisions shall not be construed to prohibit free and general dis- tribution of articles commonly used for advertising except so :far as 

such articles are actually used for commercial brib ry as herein 

defined. 

(3) Misb1·anding and Mislabelling.-False branding or lauelling 

or failure to brand or label products of the industry for the purpose 

or with the effect of misleading or deceiving purchasers or consumers 

with respect to the quality, grade, e:ffectiYenes , origin, method of 

operation, character, or substance of the products purcha eel. 

(4) Imitation of Trade llf arks.-Imitation of a competitor's trade 

mark, marking or trade name, with the purpose or effect of misleading or deceiving any purchaser or prospective purchaser. (5) Inaccurate Advertising.-To publish advertising (whether 

printed, radio, display, or o:f any other nature), which is misleading 

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

misrepresent any products or credit terms, values, policies, services, 

or the nature or form of the business conducted. 

( 6) Rebuilt or R econditioned Produots.-To rebuild er recondition, 

to disassemble or reassemble with either the same or different parts, 

sandblast or chemically treat the metal container, paint, lacquer or 

varnish the metal parts, or otherwise clean or refurnish oil filters 

with the purpose or intent of selling or offering the same for sale 

without: 

(a) Completely removing therefrom all trade marks, trade na1nes, 

style marks, size marks and/ or brand marks of the original ma.nu• 

facturer, and 

(b) Painting the words "Rebuilt" or "Used" in not less than 

1⁄2" block letters, in a contrasting color, in two places approximately 

opposite on the body of the oil filter, and 

( c) Al. o packing such oil filters in a plain white, gray or buff 

carton with only the name and address of the rebuilder or reconditioner; and the words "Rebuilt Oil Filter " or "Used Oil Filter" 

printed on each ide thereof in not less than 1⁄2" block letters; and 

printing on each end of the carton the size designation and the 

word '·Rebuilt' or "Used" in not less than 1⁄4" block letters; 

and/ or to sell or offer for sale oil filters which have been rebuilt or 

reconditioned unless the same are marked and packed as above 

provided; and/ or to advertise or otherwise represent, sell or offer 

to sell any rebuilt or reconditioned oil filters as the product of or 
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under the trade mark, trade name or brand mark of the original 

manufacturer. 

(7) Replacing Competitor's Stock.-To liquidate, purchase, or 

accept another member's product from any buyer. 

(8) Special Brands.-To sell or offer for sale special brand oil 

filters manufactured after the effective date of this Supplement, 

which are not so marked and/or packaged as to clearly indicate to 

the consumer, the producer or manufacturer of same.1 

(9) Ewport.-The provisions of this Supplement, with the exception of Article IV, paragraph (1), are 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. 

ARTICLE V-GENERAL 

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

permit monopolies or monopolistic practices, or to eliminate, oppre s, 

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 Indu trial Recovery Board, be modified or eliminated upon 

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 supplemnntary provisions of this Supplement or modifications thereof will, after approval by the Product Group, be subnlitted by the Administrative 

Committee through the Code Authority for approval to prevent 

unfair competition in price and other unfair and destructive competitive practices and to effectuate the purposes of the Act. Upon 

approval by the National Industrial Recovery Board after such notice 

and hearing as he may prescribe, such supplementary provisions or 

modifications shall become binding as a part of this Supplement. 

( 4) As r equired 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 a senting to this Supple1nental Code no member of this 

Product Group shall be held to have \laived 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 thi Supplement shall be the tenth day 

after it shall have been approved by the President. 

Approved Code No. 105-Supplement No. 6. 

Registry No. 1404--51. 

1 See paragraph 2 of order approving thi Code. 

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