Approved Code No. 84-Supplement No. 42 Registry No. 1110-03 

NATIONAL RECOVERY ADMINISTRATION I 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

BRASS FORGING 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON JULY 19, 1934 

WE DO OUR PART 

I 

1/r 

r 

UNITED STATES 1 1 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents. Washington. D.C. - - - - - - - - Price 5 cents 

v 
'l'his publication is for sale by the Superintendent of Documents, Government 

P1inting Office, Washin~ton, D.C., a nd by district offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF TBE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 P ost Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Masf;. : 1801 Customhouse. 

Buffa lo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C. : Chamber of Commerce Building. 

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce .Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ina.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, l\linn.: 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial T1·ust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 84-Supplement No. 42 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

BRASS FORGING MANUFACTURING INDUSTRY 

As Approved on July 19, 1934 

ORDER 

APPROVING SuPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE BRAss 

FoRGING MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

METAL FINISHING AND METAL COATING INDUSTRY 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

Recovery Act, approved June 16, 1933, and in accordance with the 

provisions of Section 1 of Article VI of the Basic Code for the 

Fabricated Metal Products Manufacturing and Metal Finishing and 

Metal Coating Industry, approved November 2, 1933, for approval of 

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

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

President: 

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

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Ord·ers of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise ; do hereby incorporate by reference said annexed 

report and do 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 do hereby order that said 

Supplementary Code of Fair Competition be and it is hereby 

approved. 

HuGHS. JoHNSON, 

Ad1ninistrator for lnd'IJJ.strial R ecovery. 

Approval recommended: 

BARTON w. MURRAY, 

Division Administrator. 

WASHINGTON, D.C., 

July 19, 1934. 

75020°----829-91----34 (1) 
REPORT TO THE PRESIDENT 

THE PRESIDENT, 

The lV hite House. 

Srn: This is a report on the Supplementary Code of Fair Competition for the Brass Forging ~1anufacturing Industry, a division of 

the Fabricated ~J:etal Products Manufacturing and ~1etal Finishing 

and .l\1etal Coating Industry, the hearing having been conducted 

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

provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT · 

The Brass Forging Manufacturing Industry, being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has 

elected to· avail itself of the option of submitting a Supplementary 

Code of Fair Competition, as provided for in Section 1 of Article VI 

of the Basic Code, for the Fabricated Metal Products Manufacturing 

and Metal Finishing and Metal Coating Industry approved by you 

on the second day of November, 1933. 

RESUl\ilTI OF THE CODE 

Article I states the purpose of the Supplementary Code. 

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

Article III. This Industry is a division of the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establishes a Supplementary Code Authority consisting 

of eleven (11) members to be elected at a meeting called by the Temporary Supplementary Code Authority, and gives the Admiinstra.tor 

the authority to appoint one additional member without vote and 

provides machinery for obtaining statistics and the administration 

of the Supplementary Code. 

Article V provides for cost finding and accounting. 

Article VI provides for open price filing. 

Article VII provides means for preventing destructive price 

cuttin~. 

Article VIII sets forth the unfair trade practices of this Supplementary Code which has been especially designed to offset unfair 

competition in this division of the Industry. 

Article IX provides for standardization of products. 

(2) 
3 

Article X provides against monopolies and monopolistic practices. 

Article XI contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for the submission of proposed amendments to the Supplementary Code. 

Article XII recognizes that price increases be limited to actual 

additional increases in the seller's costs. 

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

FINDINGS 

The Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of· all the proceedings in this matter: 

I find that: 

(a) Said Supplementary 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 purposes of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

and management under auequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity 

of industries, by avoiding undue restriction of production (except 

'as may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry nonnaJly employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Supplementary Code as approved complies in all respects 

with the pertinent provisions of said Title of said Act, including ·without limitation Subsection (a) of Section 3, Subsection (a) of 

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

applicant association is an industrial association truly representative 

of the aforesaid Industry; and that said association 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 econon.:tc process have not 

been deprived of the right to be heard prior to approval of said 

Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code. 

Respectfully, ' 

JULY 19, 1934. 

l-lUGH S. JoHNSON, 

Administrato-r. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE BRASS FORGING MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

:METAL FINISHING AND :MET.d.L COATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Supplementary Code of 

Fair Competition :for the Brass Forging :Manufacturing Industry, 

pursuant to Article VI of the Basic Code of Fair Competition :for 

the Fabricated Metal Products J\1anu:facturing and Metal Finishing 

and Metal Coating Industry, approved by the President on the second day o:f November, 1933, and the provisions of this Supplementary Code shall be the standards of :fair competition of such Industry and shall be binding upon every member of the Industry. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Brass Forging Manufacturing Industry" 

is defined to mean the manufacture :for sale of :forgings o:f copper, 

brass, bronze and(or related alloys which are the basic, and/or 

cleaned, and/ or tnmmed, and/or pierced andjor sized metal article 

initially formed under pressure by placing solid, plastic, or semiplastic metal between reciprocating die impressions, :forms or 

cavities. 

SECTION 2. The terms "President", "Act" and "Administrator" 

as used herein shall mean respectively the President o:f the United 

Staws, Title I o:f the National Industrial Recovery Act, and the 

Administrator :for Industrial Recovery. 

SECTION 3. The term "member of the Industry" as used herein 

includes but without limitation, any individual, partnership, association, corporation or other :form o:f enterprise engaged in the 

Industry, either as an employer or on his or its own behalf. 

SECTION 4. The term " Basic Code " as used herein is defined to 

mean the Basic Code p:f Fair Competition :for the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry a.s approved by the President on the second day of November, 1933. 

SECTION 5. The term" employee" as used herein includes any and 

all persons engaged in the Industry, however compensawd, except a 

member of the Industry. 

SECTION 6. The term "employer" as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 7. The term " Supplementary Code Authority" as u ed 

herein means the agency which is to administer thi~ Supplementary 

Code as hereinafter provided. 

(4) 
5 

SECTION 8. The term "Association " as used herein is defined to 

mean the Brass Forging Industries Association, or its successor. 

SECTION 9. The term "Supplementary Code Committee" as used 

herein is defined to mean the Committee selected by the Brass Forging Industries Association to present, make such changes as necessary, and assent to and sign this Supplementary Code on behalf of 

the Association. 

Sr:cTION 10. The term "Federation" as used herein is defined to 

me::tn the Fabricated Meta.l Products Federation, or its successor. 

SEcTION 11. The term " Confidential Agent " as used herein is 

defined to mean the impartial agency designated by the Supplementary Code Authority . . 

ARTI,..,LE III-El\IPLOYl\IENT PROVISIONS 

This Industry is a division of the Fabricaied Metal Products 

Manufacturing and Metal Finjshing and Metal Coating Industry 

and without limitation the wage, hour, and labor provisions in 

Article III of its Basic Code as approved by the President, N ovember 2, 1933, including Section 1 of said Article III, by which the 

provisions of sub-s~ctions (1), (2) and (3) of Section 7 (a) of Title I 

of the Act are made conditions of this Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor 

provisions of this Supplementary Code. 

ARTICLE IV-ORGANIZATION AND ADl\IINISTRA TION 

SECTION 1. During the period not to exceed sixty ( 60) days following the effective date of this Supplementary Code, the Supplementar·y Code Committee of the Industry shall constitute a Temporary 

Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constitute l within the sixty-day 

period a Supplementary Code Authoritv eonsisting of eleven (11) 

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

called by the Temporary Supplementary Code Authority, upon ten 

(10) days' notice sent by regi tered mail to all members of the Industry who e names may be ascertained after diligent search, who 

may vote eitlwr in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following 

annual meeting of the Association, and thereafter, members of the 

Supplementary Code Authority shall be elected, as hereinafter provided. at a me"ting of the members of the Industry to be held at 

the time and place of each annual meeting of the Association to 

serve until the following annual meeting. The members of the 

Supplementary Code Authority shall be elected in the following 

manner: 

(a) Two (2) members who are members of the Industry, but not 

members of the Association to be nominated and elected by the nonmembers of the Association, present in person, by proxy or by letter 

ballot, each member to have one vote. 

In case the non-members of the Association fail to elect the two 

(2) members as hereinabove provided, the Administrator shall 

appoint such members from a list of four ( 4) non-members of the 

Association to be furnished by the Supplementary Code Authority. 
6 

(b) Nine (9) members who are members of the Industry and 

members of the Association by fifty-one percent vote of members of 

the Association, present in person or by proxy, weighted on the basis 

of one (1) vote for each member and ten (10) additional votes for 

each member whose production is in excess of $100,000 in the previous calendar year reported to the Supplementary Code Authority, 

provided, however, that any member of the Association whose production is less than $100,000 per year shall have one (1) additional 

vote for each annual production unit o£ $10,000; provided, further 

that no one member may cast more than thirty-three and one-third 

percent ( 33Jj3%) of the total number o£ votes cast. 

A vacancy in the membership o£ the Supplementary Code Authority may be filled by a majority vote of the remaining members of 

the Supplementary Code Authority. If the vacancy be that of a 

non-member of the Association it must be filled by the election of 

a non-member. 

In addition thereto the Administrator may appoint a member of 

the Supplementary Code Authority who shall be without vote and 

shall serve without expense to this Industry, unless the Supplementary Code Authority agrees to pay such expense. The representative 

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

Code Authority. 

SEcTION 2. Each trade association directly or indirectly participating in the selection or activities of the Supplementary Code Authority shall: (1) impose no inequitable restrictions on membership, 

and (2) shall submit to the Administrator true copies of its Articles 

of Association, By-Laws, Regulations, and any amendments when 

made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem 

necessary to effectuate the purposes of the Act. 

SECTION 3~ In order that the Supplementary Code Authority shall, 

.at all times, be truly representative of the Industry and in other re-

;spects comply with the provisions of the Act, the Administrator 

may prescribe such hearings as he may deem proper; and, thereafter, 

;if he shall find that the Supplementary Code Authority is not truly 

representative or does not in other respects comply with the proVIsions of the Act, may require the removal of any or all of the members and may make appropriate modification or modifications of 

:method of selection of the Supplementary Code Authority. 

SECTION 4. Every employer shall provide for the safety and health 

o£ employees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the 

Supplementary Code Authority to the Administrator within three 

months after the effective date of the Supplementary Code. 

SECTION 5. It being found necessary in order to support the administration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effectuate the 

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

(a) 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 Supplementary Code. 
7 

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

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

( 1) an itemized budget of its estimated expenses for the foregoing 

purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of 

the Industry. 

(c) After such budget and basis of contribution has been approved by the Administrator, to determine and obtain equitable con- · 

tribution as above set forth by all members of the Industry, and to 

that end, if necessary, to institute legal proceedings therefor in its 

own name. 

Each member of the Industry shall pay his or its equitable contribution to the expenses of the maintenance of the Supplementary 

Code Authorjty, determined as hereinabove provided, and subject 

to rules and regulations pertaining thereto issued by the Administrator. Only members of the Industry complying with the Sup- ' 

plementary Code and contributing to the expenses of its adminis- ! 

tration as hereinabove provided, unless duly exempted from making 

such contributions, shall be entitled to participate in the selection of 

members of the Supplementary Code Authority or to receive the 1 

benefits of any of its voluntary activities or to make use o:f any 

emblem or insignia of the National Recovery Administration. 

The Supplementary Code Authority shall neither incur nor pay 

any obliCTations in excess of the amount thereof as estimated in its 

approved budget, except upon approval of the Administrator; and 

no subsequent budget shall contain any deficiency items for expenditures in excess of prior budget estimates except those which the 

Administrator shall have so approved. 

SECTION 6. Nothing contained in this Supplementary Code shall 

constitute the members of the Supplementary Code Authority partners for any purpose. Nor shall any member of the Supplementary 

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

other member, officer, agent or employee of the Supplementary 

Code Authority, nor shall any member of the Supplementary Code 

Authority, exercising reasonable diligence in the conduct of his 

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

to act under this Supplementary Code, except for his own willful 

malfeasance or non-feasance. 

SECTION 7. The Supplementary Code Authority shall also from 

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

Basic Code, such information as may be required to be furnished 

under the terms of said Basic Code. 

SECTioN 8. The Supplementary Code Authority shall have all the 

powers and duties which shall be necessary or proper to enable it to 

:fully administer this Supplementary Code and to effectuate its purpose. Without limitation to the foregoing, or any other powers or 

duties provided for in this Supplementary Code the Supplementary 

Code Authority shall have the following further powers and duties: 

(a) To adopt By-Laws and Rules and Regulations for, and keep 

records of, its procedure and the administration of this Supplementary Code. 

(b) To obtain from the members of the Industry, through its 

Confidential Agent, such information and reports as required for the 
8 

administration of this Supplementary Code. In addition to information required to be submitted to the Supplementary Code Authority the member of the Indu try, . ubject to this Supplementary Code, 

shall furnish such statistical inf i'ma tion as the Admini trator may 

deem nece ary for the purpose · re ited in Section 3 (a) of the Act, 

to uch Federal and State agenci s a he may desio-nate; provided 

that nothing in this Supplementary Code shall relieve any member 

of the Indu try of any e:x:i ting obligations to furnish reports to any 

Government agency. No individual report shall be diS'clo ed to any 

other member of the Industry or any other party ex ept to such 

other Governm ntal agencies as may be directed by the Administrator. 

(c) To use such trade ::tssociations and other agencies as it deems 

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

herein, provided that nothing herein shall relieve the Supplementary 

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

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

(d) To make recommendations to the Administrator for the coordination of the administration of this Supplementary Code with such 

other codes, if any, as may be related to or affect the members of the 

Industry. 

(e) To recommend to the Administrator further fair trade i-'ractice provisions to govern members of the Industry in their relations 

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

Administrator measures for industrial planning, including stabilization of employment. 

(f) To appoint a trade practice committee which shall meet with 

the trade practice committees appointed under such other· codes as 

may be related to the Industry for the purpose of formulating fair 

practices to govern the relationships between production and distribution employers under this Supplementary Code, and under such 

other to the end that such fair trade practices ma.y be proposed to 

the Administrator as amendments to this Supplementary Code and 

such other codes. 

(g) To consider the subjects of contracts in existence on the effective date of this Supplementary Code, and make recommendations 

to members of this Industry and the Administrator as to the disposition of such contracts. 

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

rules and regulations as the Administrator may prescribe, the Supplementary Code Authority shall have power to inve tigate all complaints filed with it by one member of the Indu try again t another 

member of the Industry. 

SECTION 10. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof is unfair or 

unju t or contrary to the public interest the Administrator may 

requir that such action be suspended to afford an _opportunity for 

]nvestigation of the merits of such action. Further action by such 

Supplementary Code Authority or agency regarding the matter complained of may be taken if approved by the Admini trator, but shall 

not be taken if eli approved by the Administrator within thirty (30) 

days of notice to him of intention to proceed with such action. 
9 

SECTION 11. To the extent permitted by the Act and subject to 

such rules and regulations as the Administrator may pr-escribe, any 

or all information furnished to the Supplementary Code Authority 

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

Supplementary Code shall be subject to verification by an impartial 

agency agreed upon by the Supplementary Code Authority and the 

member of the Industry in question, and, f ailing such agreement 

such impartial agency shall be selected by the Administrator, which 

impartial agency may check so much of the pertinent books, accounts and records of such members of the Industry as may be 

required to verify the accuracy of the information so furnished. 

ARTICLE V-CosT FINDING AND AccouNTING 

The Supplementary Code Authority shall cause to be formulated 

methods of cost finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Administrator for review. If approved by the Administrator, full information concerning such methods shall be made available to all members of the Industry. Thereafter, each member of the Industry shall 

utilize such methods to the extent found practicable. Nothing 

herein contained shall be construed to permit the Supplementary 

Cod.~ Authority, any agent thereof, or any member of the Industry 

_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. 

ARTICLE VI-OPEN PRICE FILING 

SECTION 1. Each member of the Industry shall file with a confidential and disinterested agent of the Supplementary Code Authority or, if none, then with such an agent designated by the 

Administrator, identified lists of all his prices, discounts, rebates, 

allowances, and all other terms or conditions of sale, hereinafter in 

this Article referred to as "price terms", which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price 

terms for all such standard products of the Industry as are sold 

or offered for sale by said member of the Industry and for such 

non-standard products of said member of the Industry as shall be 

designated by the Supplementary Code Authority. Said price 

terms shall in the first instance be filed within ten ( 10) days after 

the date of approval of this Supplementary Code. Price terms and 

revised price terms shall become 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 Industry of the time of such receif.t. Such lists and 

revisions, together with the effective time thereo , shall upon receipt 

be immediately and simultaneously distributed to all members of 

the Industry and to all of their customers who have applied therefor and have offered to defray the cost actually incurred by the 

Supplementary Code Authority in the preparation and distribution 

thereof and be available for inspection by any of their customers 

at the office of said agent. Said lists or revisions or any part thereof 
10 

shall not be made available to any person until released to all members of the Industry and their customers, as afore aid; provided, 

that prices filed in the first instance hall not be released until the 

expir~tion of the aforesaid ten (10) days period after the appro~al 

of th1s Supplementary Code. The Supplementary Code Authonty 

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 the Administrator. Upon request the Supplementary Code Authority shall furnish to the Administrator or 

any duly designated agent of the Administrator copies of any such 

lists or revisions of price terms. 

SECTION 2. When any member of the Industry has filed any revision such member of the Industry shall not file a higher price within 

forty-eight ( 48) hours. 

SECTION 3. No member of the Industry shall sell or offer to sell 

any products/services of the Industry, for which price terms have 

been filed pursuant to the provisions of this Article, except in accordance with such price terms. 

SECTION 4. Each member of this Industrl shall furnish the said 

Agent for distribution with such number o copies of his price list 

as the Supplementary Code Authority may prescribe. 

SECTION 5. No member of the Industry 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 Industry to change his price terms by the use of intimidation, coercion, 

or any other influence inconsistent with the maintenance of the free 

and open market which it is the purpose of this Article to create. 

ARTICLE VII-CosTs AND PRICE CUTTING 

SECTioN 1. The standards of fair competition for the Industry 

with reference to pricine- practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of com- ·petitwn and is forbidden. Any member of the Industry or of any 

other Industry or the customers of either may at any time complain 

to the Supplementary Code Authority that any filed 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 Supplementary Code 

Authority shall within five (5) days afford an opportunity to the 

member filing 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 R search and Planning Division of 

N.R.A. which shall render a report and recommendation thereon to 

the Administrator. 

(b) "Then 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 consid ration 

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

(c) When an emergency exists as to any given products, sale below 

the stated minimum price of such product, in violation of Section 2 

hereof, is forbidden. 
11 

SEcTioN 2. Em~rgency Provi8ions.-

( a) If the Administrator, after investigation shall at any time 

find both (1) that an emergency has arisen within the Industry 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 within the Industry 

for a limited period is necessary to mitigate the conditions constituting such emero-ency and to effectuate the purposes of the Act, the 

Supplementary Code Authority may cause an impartial agency to 

investigate costs and to recommend to the Administrator a determination of the stated minimum price of the product affected by the 

emergency and thereupon the Administrator may proceed to determine such stated minimum price. 

(b) vVhen the Administrator 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. Therea-fter, during 

such stated period, no member of the Industry 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 Supplementary Code Authority may recommend 

review or reconsideration or the Administrator may cause any 

determinations hereunder to be reviewed or reconsidered and 

appropriate action taken. 

ARTICLE VIII-UNFAIR TRADE PRACTICES 

SUPERSEDING ALL THE PROVISIONS OF ARTICLE V OF THE BASIC CODE 

The following described acts shall constitute unfair practices. 

Any member of the Industry who shall directly or indirectly through 

any officer, employee, agent or representative use or employ any of 

the following unfair practices shall be guilty of a violation of this 

Supplementary Code. 

RULE 1. False Advertising.-No member of the Industry shall 

publish advertising (whether printed, radio, display or of any other 

nature), which is misleading or false in any material particular, 

nor shall any member in any way misrepresent any goods (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. 

RuLE 2. False Billing.-No member of the Industry shall knowingly withhold from or insert in any quotation. or invoice any statement that makes it false in any material particular. · 

RULE 3. Defama#on.-N o member of the Industry shall defame a 

competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by other 

false representation, or by falsely disparaging the grade or quality 

of his goods. 

RULE 4. Threats of Law Suits.-No member of the Industry shall 

p1.1blish or circulate unjustified or unwarranted threats of legal pro-
12 

ceedings which tend to or have the effect of harassing competitors 

or intimidating their customers. Failure to prosecute in due course 

shall be evidence that any such threat is unwarranted or unjustified. 

RuLE 5. Secret R ebates.-No member of the Industry shall secretly 

offer or make any payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in the 

form of money or otherwise, nor shall a member of the Industry 

secretly offer or extend to any customer any special ervice or privilege not extended to all customers of the same cla s, for the purpose 

of influencing a ale. 

RuLE 6. S elling on Oo'Mig1Vment.-No member of the Indu try 

shall ship good on consignment except under circumstances to be 

defined by the Supplementary Code Authority and approved by the 

Administrator where peculiar circumstance of this I ndustry require 

the practice. 

RuLE 7. Oo·mme1·cial Bribery.-No member of the Industry shall 

give, permit 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 

represented party, without the knowledge of such employer1 principal or party. This provision shall not be construed to prohibit free 

and general distribution of articles commonly used :for advertising 

except as far as such articles are actually used for commercial bribery 

as hereinabove defined. 

RuLE 8. Interference with Another's Oontracts.-No member of 

the Industry shall wilfully induce or attempt to induce the breach 

of existing contracts between comp~titors and their customers by 

any false or deceptive means, or interfere with or obstruct the performance of any such contractual duties or services by any such 

means, with the purpose and effect of hampering, injuring or 

embarras ing competitors in their business . 

. RULE 9. Ooercion.-No member of the Industry shall require that 

the purchase or lease of any goods be a pre-requisite to the purchase 

or lease of any other goods. 

RuLE 10. Design Piracy.-N o member of the Industry shall imitate, simulate, appropriate or use any trade marks, trade name , slogans or other marks of identification having the tendency and 

capacity to mislea.d or deceive purchasers. 

RULE 11. Lump Swm Bidding.-No member of the Industry shall 

fail to base all bids on the price schedules showing each item separately and items shall not be lumped for bidding in any manner other 

than provided in suchc price schedules. 

RuLE 12. T erms and Conditions of Sale.-No member of the Industry hall give or offer to give ~etter terms than net cash thirty 

(30) day , or one percent (1%) discount for cash for pa, ment as 

follows: bill dated the 1st to the 15th of the month inclu ive if 

paid on or before the 25th of the month; bills dated th 16th of the 

month to and including the la t day o£ the month if paid on or before 

the lOth of the following month. Bills will be dated the day of 

shipment. 

On accounts not paid within thirty (30) day from the end of the 

month in which bills are rendered, interest will be charged at the 
13 

rate of six percent (6%), or the legal maximum whichever is lower, 

per annum beginning on the first of the 1nonth following the date 

on which payment is due. Bills for such interest will be rendered 

monthly. 

Terms on tools, fixi-ures and fitting-up charges-Net Cash. 

RULE 13. Enforcenwnt of Oontracts.-No member of the Industry 

shall neglect to enforce a contract as a means of evading price 

schedules or securing the customer's favor. 

RULE 14. Protection against Price Declines and Advances.-No 

member of the Industry shall give to cu tomers protection against 

advance in price and guaranty against decline in price. 

RULE 15. Tools and Dies.-N o member of the Industry shall contract to rebate, prorate or absorb fitting-up charges for tools and 

dies. 

Any fitting-up charges named are to cover part cost of the necessary tools and fixtures required for the particular work, such tools 

and fixtures to be and remain the sole property of the member of 

the Industry and to remain in the possession of the member of the 

Industry for use exclusively in filling orders of the customer. 

There will be no additional charge for the upkeep or replacement 

of tools and fixtures, but if, at any time, a period of three years 

has elapsed since the receipt of any order from the customer requiring the use of such tools and fixtures, the member of the Industry 

may thereafter make any such use or disposition of such tools and 

fixtures as the member of the Industry desires without any accounting to the customer for such use or disposition of the proceeds thereof, 

unless otherwise mutually agreed upon, provided, however, the member of the Industry gives thirty (30) days' written notice to the 

customer. 

ARTICLE IX-STANDARDIZATION OF PRODUCTS 

The Supplementary Code Authority may devise adequate standards for the manufacture o£ the products of the Industry, upon 

approval of such standards by fift:y-one percent (51%) vote of the 

members of the Industry, present 1n person or by proxy, weighted 

on the basis of one (1) vote for each member and ten (10) additional 

votes for each member whose production is in excess of $100,000 in 

the previous calendar year reported to the Supplementary Code 

Authority, provided, however, that any member of the Industry 

whose production is less than $100,000 per year shall have one (1) 

additional vote for each annual production unit of $10,000; provided, further, that no one member may cast more than thirty-three 

and one-third percent (331/s%) of the total number of votes cast, 

and thereafter all members of the Industry shall within ninety (90) 

days after such determination and approval by the Administrator 

follow such standards. Substitution of standards inferior to those 

set up by the Supplementary Code Authority, so approved by the 

members of the Industry and the Administrator, will be an unfair 

method of competitioN. and a violation of this Supplementary Code. 

Provided, however, that where substantial changes in the products of the Industry occur, the member or members of the Industry 

having such changes may apply to the Supplementary Code Authority for a revision of such standards and upon failure of the Supple-
llllllllllli~ll~~~~~~~~~~~~~~~~~~~~ 11 ~~~~~~~~m,\lll\\\ 1, 3 1262 08856 0577 14 

mentary Code Authority within a reasonable time to make an equitable revision of such standards, subject to approval of the Administrator, then the member or members of the Inclu try seeking such 

revision may appeal to the Administrator whose decision in the 

1natter will be final. 

ARTICLE X-lit:oNoroLIES 

No prov1s10n of this Supplementary Code shall bB so applied as 

to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate again t small enterpri es. 

ARTICLE XI-MODIFICATIONS 

SECTION 1. This Supplementary Code and all the prov1s10ns 

thereof are expre ly made subject to the right of the President, in 

accordance with provisions of subsection (b) of Section 10 of the 

Act, from time to time to cancel or modify any order, approval, 

license, rule or r egulation issued under Title I of said Act. 

SECTION 2. This Supplementary Code, except as to provisions required by the Act, may be modified or amended on the basis of experience or changes in circumstances, such modifications or amendments to be based upon application by the Supplementary Code 

.:Authority or other representative group within this Industry to the 

Administrator and such notice and hearing as he shall specify and 

to become effective and to be a part of this Supplementary Code on 

approval by the Administrator. 

ARTICLE XII-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

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

services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs 

should be delayed, and when made, such increases should, so far as 

possible, be limited to actual additional increases in the seller's costs. 

ARTICLE XIII-EFFECTIVE DATE AND DunATION 

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

A.M. on the tenth clay after it is approved by the President and 

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

thereto on which the President shal , by proclamation, or the Congress shall, by joint resolution, declare that the emergency recognized by Section 1 of Title I of the National Industrial Recovery 

Act, has ended. 

Approved Code No. 84-Supplement No. 42. 

R egistry No. 1110-03. 

0