Approved Code No. 105-Supplement No. 10 Registry No. 1404- 45 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

RADIATOR MANUFACTURING 

INDUSTRY 

(A Product Group of the Automotive Parts and Equipment 

Manufacturing Industry) 

' • 'II ' 

u 

AS APPROVED ON FEBRUARY 1, 1935 

...... l w 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1935 

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Approved Code No. lOS-Supplement No. 10 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

RADIATOR MANUFACTURING INDUSTRY 

As Approved on February 1, 1935 

ORDER 

APPROVING SUPPLEMENTARY CoDE OF FAIR CoMPETITION FOR Tim 

RADIATOR IVIANUFACTURING 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 Supplementary Code of Fair Competition for the Radiator Manufacturing 

Industry, a Product Group of the Automotive Parts and Equipment 

Manufacturing Industry, and hearings having been duly held 

thereon and the annexed report on aid Supplementary Code, containing findings with respect thereto, havina been made and directed 

to the President: 

NO\V, THEREFORE, on behalf of the President of the United 

States, the National Indu trial Recovery Board, pursuant to authority vested in it by Executive Orders of the Pre ·ident, including 

Executive Order No. 6859, and otherwise, doe hereby incorporate 

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

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

and does hereby order that said Supplementary Code of Fair 

Competition be and it is hereby approved. 

NATIONAL INDUSTRI.I\L REcovERY B oAnD, 

By \V. A. HARRIMAN, Administrative Officer. 

Approval recommended: 

BARTON vV. MuRRAY, 

Division Ad1ninistrator. 

\V ASHINGTON' D. c., b1·~"ary 1, 1.935. 

112855°----1573-16----35 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1Vhite House. 

Sm: This i a report on a Supplementary Code of Fair Competition for the Radiator ~fanufacturing Industry, a Product Group of 

the Automotive Parts and Equipment Manufacturing Industry. A 

proposed Code was submitted on March 1, 1934 by the Code Authority Committee of the Automotive Parts and Equipment Manufacturing Indu try, on behalf of the Automotive Radiator Institute 

which represents approximately 95% of the total volume of sales 

and 72% of the numb r of members of the Industry. 

A Public Hearing on the proposed Supplementary Code was conducted in \Vashington on June 26, 1934 in accordance with the provisions of the National Industrial Recovery Act. It was later revised 

and approved in its present form. This Supplementary Code is desianed prim.arily to put into legal effect certain Fair Trade Practice 

Rules which long have been recognized in the Indu try, but which 

have been without binding legal effect. The hibor provisions of this 

Supplementary Code are those of the Basic Automotive Parts and 

Equipment ~1anufacturing Industry Code. The purpose of the Supplementary Code is stated in Article I and Article II is devoted to 

definitions. 

An Administrative Committee to administer the Supplementary 

Code is set up in Article III. This Committee is com.posed of the 

Executive Committee of the Automotive Radiator Institute, but one 

additional member may in the discretion of the National Industrial 

Recovery Board be added to represent the non-members of the 

Institute who comply with the Code. 

Fair Trade Practice Rules are set forth in Article IV. 

FINDINGS 

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

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

matter : 

The National Industrial Eecovery Board finds that: 

(a) Said Suppl mentary Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recoyery 

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 indu try for the purpose of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental anction and upervision, by eliminating unfair competitive practices, by promoting the 

(2) 
fulle t p sibl utilization of th pre apa ·ity of indu tri by a voi lin a undue r tri tion f proclu tion, ( .Tcer t a may 

be temporarily required), by incr asino· the n umption of indu -

trial and agricultural products through increasinD" purcha ino· power, 

by reducino· and r elievino· unemployment, by improving tandar l 

of labor, and by otherwi e rehabilitating 1ndu try. 

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

emplo3 e ; and is not cla sified by the National Indu trial R covery 

Boar l a a major Industry. 

(c) The Supplementary Code, as approved, complies in all rcpects with the pertinent provi ion of said Title of aid Act, including v; ithouf limitation Sub ection (a) of Section 3, Sub ection (a) 

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

applicant a ociation i an industrial a sociation truly repre entative 

of the afore aid Indu try; and that aid indu trial association impo os no inequitable restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not permit monopolie 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 eno·aged 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 I ndustrial Recovery Board: 

FEBRUARY 1, 1935. 

vv. A. H ARRIMAN, 

Administrative Officer. 
SUPPLEMENTARY CODE OF FAIR COMPETITION F OR 

THE RADIATOR MANUFACTURING INl)USTRY 

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 Com- petition 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 Com- petition for the Radiator Manufacturing Industry, which has been 

organized into an administrative unit as a Product Group of the 

Automotive Parts and Equipment l\1anufacturing 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 for sale of internal combustion engine 

cooling radiators or parts thereof for original equipment or replacement, excepting, however, the production and/ or manufacture of such 

articles when produced or manufactured by a manufacturer for use 

exclusively in his own finished product, and provided always that 

this definition shall not include any products hereinabove described 

or parts thereof or therefor not designed for and used mainly as 

automotive original equipment, replacement parts andj or accessories 

and which are included within the scope of the definition of any other 

industry as defined in any approved Code of Fair Competition. 

The term" l\!Iember" or" :Member of the Product Group", as used 

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

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

production and/ or manufacture and/ or the sale as a manufacturer of 

the products of the Product Group (hereinafter ten•ned" Products"), 

either as an employer or on his or its own behalf. The term "Class 'A' l\1embers" as used herein is defined to mean 

members of the Product Group whose products are sold to manufacturers of motor vehicles, internal combustion engines or other 

products for original equipment and for service replacement thereon. 

The term " Class ' B ' Members " 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 radia- tors or parts thereof for motor vehicles, internal combustion engines 

or other products. 

(4) 
The term "In titute ' a u cl h r in i c1 fined to m an th Autom tiv Radiator In titut , a tracl a so iation at pre ent having its 

h adquarter ' office in D troi , l\1i higan. 

The term ' Basic Cod a u d herein i defined to mean the Code 

of Fair Comr titian for the Autom tive Part and Equipment Manufacturing In lu try, a approved by the President on November 8, 

1933, and a am nde l. 

The term " ode Authority ' a used herein is defined to mean the 

Code Authority de ignated in the Code of Fair Competition for the 

Automotive Parts and Equipment Ivlanufacturing Industry. 

ARTICLE III-ADMINISTRATION 

(1) (a) The Executive Committee of the Institute is hereby designated the Administrative Committee to assist the Code Authority 

and the National Indu trial Recovery Board in the administration 

of the fair trade practice provi ions hereinafter set forth and the 

provisions of the Basic Code, to which these fair trade practices are 

a supplement. One additional member may, in the discretion of the 

National Industrial Recovery Board, be added to represent the nonmembers of the Institute who comply with this Supplementary Code, 

such additional member to be selected by such non-members of the 

Institute by a fair method approved by the National Industrial 

Recovery Board. 

(b) In addition to the membership as above provided, there may 

be one additional member, without vote, to be appointed by the N ational Industrial Recovery Board, to serve without expense to the 

Product Group for such term as the National Industrial Recovery 

Board may specify. (2) (a) It being found necessary, in order to support the admini tration of this Supplementary Code and to maintain the standard 

of fair competition established hereunder and to effectuate the policy 

of the Act, the Administrative Committee is authorized: 

(1) To incur such reasonable obligations as are necesc:ary 

and proper for the foregoing purpo es and to meet 

such obligations out of funds which may be raised as 

hereinafter provided and which shall be held in trn. t 

for the purposes of this Supplementary Code; 

(2) To submit to the National Industrial Recovery Board for 

it approval, subject to such notice and opportunity to 

be heard as it may deem necessary, (a) an itemized 

budget of its estimated expenses for the foregoing purpo es, 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 o-f the maintenance of the Administrative Committee, determined as hereinabove provided, and subject 
G 

to rules and regulations pertaining thereto issued by the National 

Industrial Recovery Board. Only members of the Product Group 

complying Vi'ith this Supplementary Code and contributing to the 

expenses of its administration as hereinabove provided, (unless duly 

exempted from making such contribution), shall be entitled to par- ticipate 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 theN ational Industrial Recovery Board; and no subsequent budget 

shall contain any deficiency item for expenditures in excess of prior 

budget estimates except those which theN ational Industrial Recovery 

Board shall have so approved. 

(3) (a) The Administrative Committee shall, subj ect to the ap- proval 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 for 

the administration and enforcement of this Supplementary Code; 

to cooperate with the N ational 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 com- plaints; to initiate, consider, and recommend to the Code Authority 

for transmittal to the National Industrial Recovery Board further 

f air trade practice provisions to govern the members of this Product 

Group. 

(b) If the National Industrial Recovery Board shall determine 

that any action of a Code Authority andj 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 act:ion and further consideration by 

such Code Authority and/ or the Administr ative Committee or agency 

pending final action which shall not be eff~c tive unless the N aticnal 

I ndustrial Recovery Board approves or unless 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 of activities of the Administrative Committee shall (1) impose no inequitable r estrictions on membership, 

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

of its articles of association, by-laws, regulations, and any amend- ments when made thereto, together with such other information as to 

membership, organization, and activities as the National Industrial 

Recovery 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 
7 

comply with th prov1 1 n the National Incln trial Rccov ry Board may pr ribo su h hearino· · ns it m< r de >J 1 p1 op ·~· · ~~ !ld 

th r after if it hall fin l that the A lmini trativ ommitt e is n t 

truly r pr LtatiY or do not in oth r r ·p ct · c mply with the proi i n f th Act, may r quire an ar I r priat modification in the 

meth d of 'el ction of th Admini trative Conn itt e. 

( 4) Ul m mber of this Product Group shall be bound by the 

provi ion of the Ba ic Code. For thi purpo e all provision of the 

Ba ic Code are hereby de lare l to be a part of this Supplementary ~ole. In case of any conflict between the provi ions of this upplem ntar. Code and the provisions of the Ba ic Code, the provi 1ons 

of the latter shall govern. As required by Section 7 (a) of Title I 

of the National Indu trial Recovery Act, it is hereby provided: (1) 

That employee shall have the right to organize and bargain collectively through representatives of their own chao ing, and shall be 

free from the interference, restraint, or coercion of employer of 

labor, or their agents, in the de ignation of uch representativ or· in elf-organization or in other concerted activities for the purpose of 

collective bargaining or other mutual aiel 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 fronl 

joining, organizing, or a si ting a labor organjzation of his own chaosina· and (3) that employer shall comply with the maximum hours 

of labor, minimum rates of pay and other conditions of employment, 

approv d or prescribed by the President. 

( 5) The Administrative Committee shall cause to be formulated 

method · of co t 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. Ther after, each member of the Product Group shall utilize. such method to the extent found practicable. Nothing herein contained shall be construed to permit the dministrative Committee. 

any agent thereof, or any member of the Product Group to suggest 

uniform additions, percentages or differentials or other uniform. item of co t which are de igned to bring about arbitrary uniformity 

of co ts or price . · 

(6) The Admin' trati\e Committee shall be empowered to obtain 

from member of the industry such information and reports as are, require l for the admini tration of this Supplementary Code. In 

addition to information required to be submitted to the Code Authority, members of the industry subject to this Supplementary Cod . shall .furni h uch stati tical information as the National Industrial 

Recovery Board may deem nece,ssary for the purposes recited in 

Section 3 (a) o.f the Act to such Federal and State agencies as it 

may de ignate; provided that nothing in this Supplementary Code 

hall relieve any member of the industry of any existing obliaations 

to furni. h reports to any Government agency. No individual report 

hall be eli clo eel to any other member of the industry or any other 

party except to such other Governmental agencies as may be directe l by the National Industrial Recovery Board. 
8 

ARnCLE I V-TnADE Pr-ACTICES 

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

Basic Code, the following described acts shall constitute unfair 

practices and acts of unfair competition: 

(1) Costs and Price Cutting.-(a) \Vilfully 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 Comn1ittee 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 the National Recovery Administration 

which shall render a report and recommendation thereon to the 

N r.tional Industrial Recovery Board. 

(b) \Vhen 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) vVhen an emergency exists as to any given product sale 

below the stated minimum price of such product, in violation of the 

provisions of paragraphs (d) and (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 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 

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) \Vhen the National Industrial RecoYery 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) Omn77 ?'cial Brib ry.-To giYe I ermit t b o·iven, or dire tly 

off r to gi e anythino· of value for th pnrp e of influencing or 

rewarding the a tion of any mployee, agen t, or repre entative of 

another in relation t th bu ine s of th mployer of uch employee, 

the principal of uch agent or the r pre ented party, without the 

kno ledge of u h employer, principal or party. Commercial bribery pro i ion hall not be construe l to prohibit fre e and general distribution of arti les commonly u eel for advertising except so far 

a uch article are actually used for commercial bribery as her·ein· 

above defined. 

(3) I naccurate Labeling.-To list, brand, mark, or pack any pro luct of the Product Group in any manner which is intended to or 

do deceive or mislead purchasers in some material particular or 

the failure to brand such product for the purpo e or with the eftect 

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) . 

(4) Imitation of Trade-Marks.-To imitate or copy a competitor's 

trade-mark, marking, or trade name with the purpose or effect of 

misleading or deceiving any purchaser or pro pective purchaser. 

(5) I naccurate 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. 

( 6) E xport BttSiness.-The provisions of this Supplementary Code 

with regard to prices, discounts, deductions, allowances, extras, com- mission , andj or terms of ales, are not to apply to direct export 

sales or to sales in course of export (i. e., sales destined ultimately 

for export) . " Export Trade " shall be as defined in accordance 

with the Export Trade Act adopted Apri,l 10, 1918. 

(7) Conforming to San~ples .-To ship or deliver products that do 

not conform to the sample submitted or representations made with 

respect thereto prior to securing the order, without the consent of 

the purchaser to such substitutions. 

SECTION .A (FOR CLASS "A" MEMBERS ONLY) 

(Paragraphs 8 to 15 inclusive) 

(8) Tool and Die Oosts.-To sell the products of Class "A" mem- ber without requiring the cu tamer to pay the cost of any tools, 

pattern , dies, jigs and/or fixtures which it may be necessary to build 

for the purpose of producing the particular radiator sold to said 

cu. tomer. Said tools hall be paid for under one of the following 

condition : 

(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 six months. 
10 

(c) By an amount added to the cost of each radiator, which 

shall equal the total cost of sui l tool · divide l by the total number 

of radiators of approximately like kind u eel by the purchaser over 

the period of twelve months immediately preceding the placing of 

the order. In such vent aiel item shall be included in the selling 

price or billad separately and any balance remaining unpaid at the 

completion of the order, or of the model as a current production 

type, shall be immediately due and payable in cash. 

(d) By prorating the purchase price of said tools over the actual 

quantity used in the purchasing specifications, any unpaid balance 

to become due and payable as provided in Subdivision (c) of this 

paragraph. 

A used herein, the term " Cost " shall moan the cost of said tools, 

patterns, dies, jigs, and/ or said fixtures :::.s determined by the methods formulated in accordance with the provisions of Article III, 

paragraph 5 of this Supplementary Code. 

(9l T er11u.-To extend credit term more favorable than net 30th 

proximo. 

(10) Defective Llfaterial.-For Class "A:' members to allow credit 

for defective material outside the scope of t]v' uniform guaranty 

which is us follows: 

"Products are not gt·aranteed beyond s}x month from date of 

shipment from such member's plant and then only against defective 

material or workmanship. Products v:hich are alleged to be defective must be returned for inspection, transportation charges prepaid. If upon in pection such product are found to be clofective 

in n1aterial or workmanship, they may he repaired or replaced by 

products of equivalent weight and capacity and the prepaicl trans- portation clF•rges refunded. This guaranty shall not cover charges 

for consequential labor or damage." 

(11) l nterf e1' nee with Anothe1·'s Oontracts.-To attempt to induce the breach of an existing contract between a competitor and his 

customer or source of supply; or to interfer with or ob truct the 

performance of snch contractual duties or servic s. 

(12) OjJ'e1·inq Procl'lict of L e:ser Oapacity.-To <!:ffer !or sale a 

product of lesser cooling capacity than that prescn bed In buyer's 

specifications without stating in writing the fact that such product 

so offered i of lesser cooling capacity. 

(13) R esponsibility for Cooling Oapacity.-To assume responsibility for suitable cooling capacity ~ pre cribed in buyer's specifi- ~at ions b yond that involve l in the furnishing to and acceptance 

by buyer of samples or initial shipment of products. 

SEC'l'ION B (FOR CL <\SS " B" l\IEl\IUJ<:TIS ONLY) 

(Paragraphs 14 to 25, inclusive) 

(14) Price guaJ•anty.-To guarantee Product Group products 

against advance or decline in price. 

(15) 01l·StomeTs' Fal e AclveTtising.-To sell to outlets who persist 

in publishing advertising, wheth r printed, radio, display or of 

any .other nature, :vhich is misl~ading or inaccurate in. any l!laterial 

particular, or who In any way misrepresent any goods (~ncludmg, ~ut 

without limitation, its use, trade-mark, grade, quahty, quantity, 
11 

or1o-Hl h rn ter natur , fini .. h, ~ ~r ~·! ~d · !l'lcr!t, or 

pr pnrati n) r '< lue 1 lici . , or en·i · .·. (16) on ignn ' ld, Floating Or dit 07' L dgeJ· Balan c . . -To pla e 

roup ProL1urt with an. trac1 outlet on a cc ignmnn ~ b:1s: or on a 

floa ino· cr dit and/ or l lg r balanc basi . All c n io·nm nt , floating credit, and/ or l dger bala 1<: existina 

n the dat f the approval of this Supplementary Cod hull be 

terminat d . ithin nin ty (90) days by ~ither of the following 

method : 

(a) B return of uch m rchandise to the owner. 

(b) By u tom r accepting billing for such consignments, floating 

cr lit , andjor ledo·er balances for payment in full within ix months. 

(17) l¥ W'elwusing.-To warehouse Group Products with any cla s 

of customer . 

(18) Def ct · eM aterial.-For Cla s "B "members to allow credit 

for d fective material outside the scope of the uniform guaranty 

which is as follow : 

' Produ ts are not guaranteed beyond ninety days from date of 

installation and in no event for more than one year from date of 

shipment from member's plant and then only against defective material or worlunanship. Products which are alleged to be defective 

must be returned for inspection, tran portation charges prepaid, to 

such point a the member or his agent may d signate. If upon in pection such products are found to be defective in material or workmanship, they may be repaired or replaced. by products of similar type 

and capacity and the prepaid transportation charges refunded." 

(19) Returned Goods.-(a) To accept the return of Group Products 

except for merchandi e credit. This clause shall not apply to the 

return of defe tive material in the case of the clo ing out of an 

account. 

(b) To allow the return of Group P roducts without a handling 

charge to the customer which adequately reftncts the co t of rehandling, retesting, reinspecting, and repacking-the customer paying 

all return hipping and insurance expenses-except when the customer returns legitimately defective material, as within the ~co e of 

the uniform guaranty set forth in Article IV, paragraph 18 of this 

Supplementary Code; or the customer returns Group Products 

shipped by a member through error, or certain pecifiecl items that 

a member may ask all his customers to return. 

(20) Open Price Filing.-(a) Each Cla "B" member of ~ 

Product Group hall file with a confidential and disinterested agent 

of the Administrative Committee or, if none, thnn with such an 

agent designated by the National Industrial R covery Board, identified lists of all of his prices, discounts, rebates allowance ·, and 

all other term or conditions of sale, includino· premiums, hereinafter 

in this See2tion (22) referred to as 'price terms", which li ts hall 

completely and accurately conform to and represent the individual 

pricing pra tices of aid member. Such lists shall contain the price 

terms for all uch standard products of the Product Group as are 

old or off red for sale by said member and for such non -standard 

pro luct of said member as hall be designated by the Administrative 

Committe . aid pric terms hall in the first instance be filed within 

15 day after the date of approval of this provision. Price terms and 
12 

revised price terms shall beccme effective immediately upon 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 Class "B " members of the 

Product Group and to all of 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 

Class "B " members of the Product Group and their customers, as 

aforesaid; provided, thut prices filed in the first instance shall not be 

released until the expiration of the aforesaid 15 day period after the 

approval of this Supplementary Code. The Administrative Committee shall maintain a permanent file of all price terms filed as 

herein provided, and shall not destroy any part of such records except upon written consent of theN ational Industrial Recovery Board. 

Upon request the Administrative Committee shall furnish to the 

National Industrial RecoYery Board or any duly designated agent 

of the National Industrial Recovery Boa rd copies of any such lists 

or revisions of price t erms. 

(b) \Vhen any member of the Product Group has filed any revi- ion, 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 

:1ny products of the Product Group for which price terms have been 

filed pursuant to the provisions of this Section (22), 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, 

.:> aid member shall immediately file ne\\ 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 of the Product 

Group to change his price terms by the use of intimidation, coercion, 

or any other influence inconsistent with the maintenance of the free 

:mel open market which it is the purpose of this Section (22) to 

create. 

(21) Olrussificat-ion of cust01ne1'S.-The Code Authority shall cause 

to be formula ted and keep current a classification of all types of 

rustomers of the Industry. Such classification shall be subject to ~he disapproval of the National Industrial Recovery Board and shall 

contain : (a) A complete list of all of the classes of customers of 

the Industry, including a class to cover every known type of customer; ::md (b) definitions or descriptions of the several classes in 

terms of functions performed, or in other appropriate terms such 

as purchasers of defined quantities. 

After submission to the National Industrial Recovery Board, if 

there is no disapproval or request for suspension of action within 
13 

tw nty (20) lay , f 1ll information c ncerning th lassifi ation 

hall be mad available to all m mb r of the In lu try. No one . hall by intimidation, c er ion, or oth r undue influence cau e or 

att mpt to cau e th inclu ion of any cu tamer in or the exclusion of 

any cu tamer from any cia of cu tamers, or the exclusion of any 

cia f customer from the classification, or the use of uniform or 

tipulatc l price , di c?unt, or ~iffer~ntials and each ~ember of the 

Indu try may at all times class1fy h1s own customers In accordance 

with hi own judgment. 

(2"'") T enns.-To grant a cash discount to exceed 2%, lOth proximo, to extend terms greater than 30 days net, or to extend date of 

inYoice beyond regular e tabli heel credit terms. No cash discount 

shall be allowed on trade acceptance or note settlement. 

(23) R placing 0 ompetit01·s' Stock.-To liquidate, purchase, or 

accept another member's product from any buyer. 

(24) Adv rtising and Pr01notional Schemes.-To patronize, 

through allowances or otherwise, ad Yertising or promotional schemes 

in any form except where the payments therefor are for specific 

promotion performances which are possible, practicable and capable 

cf being audited. Arrangements for each such services shall be in 

agreements entirely separate and distinct from sales agreements between a member and his customer, and shall definitely specify exactly 

how uch hall be paid (in money or credit, goods or services) for 

such promotional services, exactly what services shall be rendered 

and the method which will be employed in auditing the performance 

of such services. 

(25) Premiu1ns.- The giving of premiums and/or prizes to any 

customers and/ or their employees when such premium and/or prizes 

are not offered to all customers and/or their employees of the same 

class. 

ARTICLE V-GENERAL 

(1) No proYision of this Supplementary Code hall be so applied 

as to permit monopolies or monopolistic practices, or to eliminate, oppre , or discriminate against ~mall enterprises. 

(2) Such of the provisions of this Supplementary Code as are 

not required to be included herein by the Act may, with the approval 

of theN ational Industrial Recovery Board, be modified or eliminated 

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

it appears that the public needs are not being served thereby and 

as chancres in circumstances or experience may indicate. 

(3) It is contemplated that from time to time supplementary provi ion to thi Supplementary Code or mo lifications thereof will, 

after approval by the Product Group, be submitted by the Adminis~ 

trative Committee through the Code Authority for their approval 

to pre ent unfair competition in price and other unfair and de tructive competitive practices and to effectuate the purposes of the Act. 

Upon approval by the National Industrial Recovery Board after 

such notice and hearing a it may prescribe, such upplementary 

prov1 1011 or n1odifications shall become binding as a part of this 

Supplementary Code. 

( 4) As required by Section 10 (b) of Title I of the A t, this 

Supplementary Code and all of the provisions thereof are expressly • 
UNIVERSITY OF FLORIDA 

14 llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

3 1262 08584 3604 

made subject to the right of the Pr. sident from time to time to cancel 

or modify any order, approval, lice.nse, rula, or regulation issued 

under said Act. 

(5) Violation by any member of this Product Group of any 

provision of tlus Supplementary Code is an act of unfair competition, and the offender shall be subj ect to the penalties imposed by 

the Act. 

(6) The " Effective Date" of thi Supplementary Code shall be 

the lOth day after it shall have been approved. 

Approved Code No. 105-Supplement No. 10. 

Registry No. 1404-45. 

0