Approved ode No. 84-Supplement No.7 Regi try No. 1149-l-05 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

TOOL AND IMPLEMENT 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON MARCH 15, 1934 

WE DO OUR PART 

UNITED STATES 

GOVER_ -MENT PRINTING OFFICE 

WASIDNGTON: 1934 

For sale by the uperintendent of Documents, Washington, D.C- - - - - - - - - Price 5 cents 
This publication is for ale by the Superintendent of Documents, Government 

Printing Office, Washingt on, D.C., and by district offic of the Bureau ot' 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ARTIVIENT OF COMMERCE 

Atlanta, Ga. : 504 Po t Office Building. 

Birmingham, Ala.: 257 F ederal Building. 

Boston, Mass. : 1801 Customhou ·e. 

Buffalo, XY.: Chamber of Commerce Building. 

Chari ston, S.C.: Chamber of Commerce BuLding. 

Chicago, Ill.: Suite 1706, 201 North Well::; Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

D troit, Mi<.:h. : 8 1 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commer e Building. 

J acksonYille, Fla.: Chamber of Commerce Building. 

Kansas City, Mu.: 1028 Balt·more Avenue. 

Los Angeles. Calif. : 1163 South Broadway. 

LouisYille, Ky. : 40 F cleral Building. 

Memphi , Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

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

New York, N.Y.: 73-:l Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Tru t Building. 

Pittsburuh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building·. 

St. Loui , Mo.: 506 Olive Street. 

San Fra ncisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 8 9 Federal Office Building. 
Approved Code No. 84-Supplement No. 7 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR TH E 

TOOL AND IMPLEMENT MANUFACTURING 

INDUSTRY 

As Approved on March 15, 1934 

ORDER 

APPRO\TXG STJPPLEl\IEXTARY CoDE OF FAIR CoMPETITION F OR THE T ooL 

AND I MPLK \IEKT l\I[ ANUFACTURIKG INDUSTRY 

A DIYI::iiOX OF TilE F ..:\BlliCATED METAL PRODUCTS 1\IANUFACTU RING AND 

ETaL FINISHING AND METAL COATING I N DUSTRY 

40474°- -425- 76- - 34 (1 ) 
2 

the effective date of this Code or after the completion of a study 

of open price associations now being conducted by the National 

Recovery Administration. 

HUGH s. JOHNSON' 

Ad1ninistrator for Indust?·ial R ecovery. 

Approval recommended: 

w. A. HARRIMAN' 

Division Adminutrator. 

MARCH 15, 1934. 
REPORT TO THE PRESIDENT 

1 h PRE "'IDEXT 

The lVhit Hou e. 

IR: Thi i a report on the Supplementary Code of Fair Compeition for the Tool and Implement ~1anufacturing Industry, a cliviion of the Fabricated ~fetal Products ~1anufacturing and Metal Fini hing and Metal Coating Industry;. the hearing having been 

n l.ucted thereon in \Va hington, D.tJ., December 18, 1933, in 

a ordan e with the provi ions of Title I of the National Industrial 

Recm ... ry A t. 

GE:i\ERAL STATEMENT 

• The Tool and Implement ~1anufacturing Industry, being truly 

repre entative of this division of the Fabricated ~1etal Products 

~Ianufacturing and ~!fetal Finishing and ~!fetal Coating Industry, 

ha elected to aYail it el:f of the option of submitting a Supplementary Code of Fair Practice, as pro' ided for in Section 1 of Articlo 

\I of the Ba ic Code for the Fabricated Metal Products Manufac· 

turing and ~fetal Fini hing and :Metal Coating Industry approved 

by ou on the econd day of November, 1933. 

RESUl\LE OF THE CODE 

Article I tate the purpo e of the Supplementary Code. 

Article II a curately defines specific terms employed in the Suppl mentary Code. . Article III. This Indu try i a division of the Fabricated ~fetal 

Product ~Ianufacturino· and Metal Fini hing and ~!fetal Coating 

Inclu try and th labor provi ions of its Ba ic Code as approv d ... O\ mber 2, 1933. arc the labor provi ion of thi Supplem ntary 

le. 

rticle I\ e·tabli ·h a upplem ntary ode Authority con istinO' 

of e n (7) member lected by the member f the Indu try at a 

m eting ailed by the Supplementary Code Authority, and giv s the 

Admini trat r the authority to appoint one additional member without vote an l pro' ide. machinery for obtaining tati tics and the 

aclmini · ra ion of th upplementary Code. 

Arti ·l V t f rth th unfair trad practice of thi uppl mente ry de whi h ha · I en pe ially le ign cl t off et unfair mI titian in thi eli i ion of the In lustry. 

Arti I VI provicl again. t monopoli and monor oli. tic pra ·ti , . Arti l VII contain th manclat ry provi ion.· ntained in Se ion 

10 (b) of th A t and al o provide for th ·ubmi . ion of pr p . l 

am ndm nt to th uppl m ntar od . 

Arti l VIII r c gniz that 1 ri in r a u ·h a may be 

r quir d tom t indivi lual o ·t. · ·hould b 

(3) 
4 

Article IX sets forth that assent to this Supplementary Code does 

not involve the waiving of any constitutional rights. 

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

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplem.entary 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 adequate governmental auctions and supervision, 

by eliminating unfair competitive practices, by pro~oting 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 normally 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 

~Vith the pertinent provisions of said Title of said Act, includin~ without limitation Subsection (a) of Section 3, Subsection (a) of ;:;ection 

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 1s not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 

against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code. 

Respectfully, 

MARCH 15, 1934. 

HuGHS. JoHNSON, 

Admini8trator. 
PPLE~IE~TARY CODE OF FAIR C0~1PETITION FOR 

THE TOOL AND I ~1 P L E ~1 E NT ~IANUF ACTURING 

INDUSTRY 

F THE F.\BRICATED l\IETAL PROD"GCTS MANUFACTURING AND 

l\[ETAL FINISIIIXG AND l\IETAL COATIXG IXDUSTRY 

ARTICLE !-PuRPOSE 

To effectuate the policies of title I of the National Industrial 

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

Fnir Competition for the Tool and Implement ~fanufacturing Inlnstry. Pursuant to Article VI of the Basic Code of Fair Competition for the Fab1:icated ~1etal Products l\Ianufacturing and Metal 

Finishing and ~1etal Coating Industry approved by the President on 

the 2nd day of November, 1933, the provisions of this Supplementary 

Code shall be the standards of Fair Competitions of such industry 

ancl shall be binding upon every member of the Industry. 

ARTICLE II-DEFINITIONS 

(5) 
6 

The term "l\{ember of a Division" means and includes any individual, partner hip, association, corporation or other form of enterprise engaged in the industry diviswns as above defined. The term "President", "Act" and "Administrator" as u eel 

here.in shall mean respectively the President of the United States, 

the National Industrial Recovery Act, and the Administrator for 

Industrial Recovery under Title I of said Act. 

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

Basic Code of Fair Competition for the Fabricated Metal P roducts 

Manufacturing and Metal Finishing and Metal Coating Industry, as 

approved by the President on the 2nd day of November, 1933. 

The term " Supplementary Code Authority " as used herein means 

the agency which is to adm.inister this Supplementary Code as hereinafter provided. 

The term "Association " as used herein, is defined to mean the 

General Tool and Implement Association or its successor. 

The term "Code Committee" is defined to mean the Executive 

Committee of the As ociation. 

The term " Secretary " is defined to mean the Secretary of the 

Supplementary Code Authority. 

The term "Federation n as used herein is defined to mean Fabricated Metal Products F ederation or its succe sor. 

ARTICLE III-EMPLOYMENT PROVI IO~S 

This industry is a division of the Fabricated l\fetal Products Manufacturing and Metal Finishing and Metal Coating Industry and the 

labor provisions of its Basic Code as approved by the President are 

the labor provisions of this Supplementary Code as though herein 

repeated and set forth at length. 

ARTICLE IV-ORGANIZATION AND ADMINISTRATION 

SECTION 1. During the period not to exceed sixty ( 60) days following the effective date, the Code Committee of the Association shall 

constitute a Temporary Supplementary Cod·e Authority until the 

Supplementary Code Authority is elected. 

There shall be constituted within the sixty (60) day period a Supplementary Code Authority consisting of seven (7) 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 registered mail to all known members of the Industry, 

who may vote either in person or by proxy. The members of the 

Supplementary Code Ai1thority first elected shall serve until the following annual meeting of the Association in October, 1934, and thereafter members of the Supplementary Code Authority shall be elected 

at 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 members who shall be members of the Industry by a 

majority vote of all known members of the Industry present in person or by proxy, each 1nember to have one vote. 
7 

m mb r of th 

J f th Indu tr 

orb ' pr xy < h memb r t ha ote. · b a 1% 'T t f m mb r f the As o iation 

pr nt in p r · n r b r xy weighte on the ba i of on vote for 

a h m mber and n a ditonal vote for ea h $5,000.00 of annual 

al in th 1 r viou al ndar rear r ported to the Temp rary Code 

An h rit) : 1 r vill l howe r that no m mber may ca t more than 

31,13 o of th t tal number of votes ca t. 

\._ va anc in th member hip of the Suppl mentary Code Authorit) ma b fill l by a majority vote of the remaining members of 

th --. uppl mentary Col Authority. 

Provi le l however that the right to vote as set forth above shall 

b ubj t to the liirtitations provided in S ction 4 of this Article. 

In a lditi n th reto the Admini trator may appoint a member 

f the uprlementary Code Authority who without vote hall serve 

without expen e to the Industry, unless the Supplementary Code 

.Authority agr e to pay such expense. The member who may be 

appoint d by the A lmini trator hall be given reasonable notice of 

all me ting and may it at all meetings of the Supplementary Code 

Authority. 

E Tro ... T 2. Any A ociation directly or in lirectly participatin<r in 

the election or activities of the Supplementary Code Authority s~ll (1) impo e no inequitable restrictions on admis ion to member hip 

and (2) ubmit to the Administrator true copies of its articles of 

a ociation, by-law , regulations, and any amendments when made 

thereto to<rether with such other information as to membership, 

organization, and activities as the Administrator may deem nece sary 

to effectuate the purposes of the Act. 

SE TION 3. In order that the Supplementary Code Authority shall 

at all times be truly representative of the Industry and in other 

re pect comply with the provi ions of the Act, the Administrator 

maj pre cribe uch hearings as he may deem proper; and thereafter 

if he shall find that the Supplement.ary Code Authority is not truly 

r pre entative r doe not in oth r respects comply with the pro- i~ion of the Act, may require an approporiate modification in the 

method of l ction of the Supplementary Code Authority. 

SECTIOX 4. All members of the Industry are subject to the jurisdiction of th upplem ntary Code; hall be entitled to participate in 

ih a tivitie of and hare the benefits of the Supplementary ode 

Authority· hall be ntitled to vote in the selection of Cla e (a) 

and (b) m mb r f the upplementary Code Authority a provide 

in ction 1 of this Article; and hall pay their rea onable hare of 

the xpen ·e of the admini trati n of this Supplementary ode, uch 

r a n bl ·hare t be l termined by the Supplementary ode 

Authority ubject t r vi w by the Administrator, on the ba is of olum of bu in . and/ r su h other factor a may be deemed equitable 

Ly the uppl ntary C de Authority. 

E TI N . Th uppl m ntary ode Auth rity shall have all the 

p w r and duti whi h hall be n ce ary and prop r t nable it 

to full admini t r this ur pl mentary de and to ff tuate its 

purpo e. 
8 

\Vithout limitation to the foregoing or any other powers or duties 

provided for in this Supplementary Code, the Supplementary Code 

Authority shall have the following specific duties : 

(a) To establi h after due notice, investigation and hearing 

whether in their opinion any member of the Industry has committed 

a violation of any provi ion of this Supplementary Code, and report 

same to the Administrator. In case any member of the Industry 

makes a complaint to the Supplementary Code Authority that any 

other 1nember of the Industry is not complying with any particular 

trade practice rule of this Supplementary Code, the Supplementary 

Code Authority may require the division of the Industry affected to 

make a written report of the facts with its recommendations to the 

Supplementary Code Authority to guide its decision. 

(b) To adopt by-laws and rules .and regulations for its procedure 

and for the administration of the Supplementary Code. 

(c) To obtain from members of the Industry such information 

and reports as the Supplementary Code Authority may require for 

the administration of the Supplementary Code and to provide for 

submission by members of the Industry of such information and 

r eports as are nece sary for the purposes recited in Section 3 (a) 

of the Act; provided that nothing in this Supplementary Code 

shall relieve any member of the industry of any exi ting obligation 

to furnish reports to any GoYernment agency. No inlividual reports 

shall be disclosed to any other m mber of the Indu try or to anyone 

other than the Administrator or his duly authorized r epresentatiYe 

and as hereinafter provided. 

(d) To use ·uch trade associations and other agencies as it deems 

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

herein, provided that nothing herein shall r elieve the Supplementary 

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

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

(e) To make recommendation to the Administrator for the coordination of the administration of this Supplementary Code with 

su h other codes, if any, as may be r elated to this Industry. 

(f) To secure from members of the Industry an equitable and 

proportionate payment of the rea sonable expenses of maintaining the 

~upplementary Code Authority and it activities, based upon volume 

of busincs and/or such other factors as the Supplementary Code 

Authority may prescrib ..... . 

(g) To cooperate with the Admini trator in regulating the use 

of any N.R.A. insignia solely by tho e members of the Industry 

" ·ho haYe as ented to, and are complying \vith: this Supplementary 

Code. 

To require that any article manufactured by those members of 

the Industry who have assented to and are complying with this 

Supplementary Code shall bear the N.R.A. in ignia. 

(h) To recommend to the Administrator further fair trade practice provi ions to govern members of the Industry in their relations 

with each other or with other indu trie and to recommend to the 

Aclmini trator measures for industrial planning, including stabilization of employment. 
9 

time to th Basi od \uthority 

d ignat a in aid ic <.le u h inf rmati n a may e r uir d 

to b furni h d und r th t rm f th lla i ocle. 

E ·n T • An 7 and all information furni hed to the e retary of 

th uppl m ntar de Authorit or other per on or committee 

ar p int d by the upplementary C de Authority, by a corporate 

m mber f th In u try hall be ubje t to inv tiga ion to the extent 

permitted by th Ac for the I urpo e of verifi ation y a di inter ted 

per on or p r on mutually a Te d upon by he Supplementary ode 

Authori an th m mber of he Industry or y a per on or persons 

nominat by the Sup lementary Code Authority and approved by 

th .... hln1inistrator. The co t of uch inve tigation shall be treated 

a · an pense of admini tering the Supplementary Code; provi ed, 

how Yer that if upon ·uch inv tio·ation any uch information shall 

be ·hown to ha v been in orrect in any material respect, such costs 

shall be paid by he member of the Industry which furni heel uch 

information provided the aid member has assented to the Supplem ntnry Code and specifically to the provi. ions of thi Section. 

r:cTI01 7. All individual and private information received from 

report by the Secretary appointee or c01nmittee, or as a re ult of 

in e ti ation hall be held in trict confidence and not disclosed to 

any competitor or other per ons outside the Secretary's office withou the penni sion of the member of the Industry involved. 

Provided, however, that such information may be disclo ed to any 

authorized governmental agency. 

Provided further that when necessary in the hearing of a complaint information resulting from an investigation may be disclosed 

to the Supplementary Code Authority or its appointee, and 

Pro-vid d further that information pertaining to the reporting of 

prices, terms and conditions may be disclosed to effectuate the purpo e of this Supplementary Code in accordance with Article V, 

Rule 1. 

E TION . Any di' i ion may adopt its own regulations and collect tati tics to carry out the Fair Trade Practices and any other 

provi ion of this Suppl mentary Code. 

Ea h indu trial di' i ion shall keep minutes of its meetings, 

copie of which minut s shall be filed with the Secretary. 

E TION 9. Th m mbers of the Industry shall report in the first 

in tance to the upplementary Code Authority or their appointees 

any c mplaint regar ling an allege violation of thi Supplementary 

Cod . Th upplem ntar ode Authority hall have the power to 

e tabli h after due noti e in estiga ion and hearing, wh ther in their 

opini n any m mber of the Indu try ha committed a violation of 

any provi ion of thi ur pl m ntary Code and r port same to the 

1mini tra or. Th uprl m ntary o e uthority shall in addition to th penalti rrovid d by the N ati nal Indu trial Recovery 

t furth r hav th pow r to tabli h from time to time fines 

an p n lti f r the br a h of ail pro i ion by tho e a enting to 

thi uppl m ntary od an I cifi< ally to this provi ion and to 

mak a uate rul and t k u h action for the ollecti n and the 

di p ·iti n of aid fine aft r ollecti n or the waiving of said 

fin · as they d m proper in the in re t of th In u · ry or Industry 
10 

Divisions and in conformity with the purpose of the. National Industrial Recovery Act. An appeal from the determination of and fines 

and penaltie impo eel by the Supplementary Code Authority may 

be made to the Administrator. 

SECTION 10. Nothing contained in this Supplementary Code shall 

constitute the members of the Supplementary Code Authority partner 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, exerci ·ing reasonable diligence in the conduct of his duties 

hereunder, be liable to anyone for any action or omi sion to act under 

this Supplementary Code, except for his own willful mi feasance or 

non-fea ance. 

SECTION 11. If the Admini trator 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 Admini trator may require that such action be suspended for a period of not to exceed 

thirty (30) days to afford an opportunity for investigation of the 

merits of such action. Further action by such Supplementary Code 

Authority or agency regarding the matter complained of shall not 

be taken if eli approved by the Administrator on or before the expiration of the thirty (30) day period set forth above. 

ARTICLE V-UNFAIR TRADE PRA TICES 

In addition to the unfair trade practices covered by \rticle V of 

the Basic Code which are incorporated herein, the same as though 

herein repeate l and set forth at length and for all purposes of this 

Supplementary 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 such unfair practices, shall be guilty of a violation of this Supplementary Code. RuLE 1. Every member of the Indu try shall file with the npplementary Code Authority 'lithin ten (10) clays after the effective 

date price bsts and copie · of all other quotations and terms of sale 

inclu ling credit, freight and all disconnts individually prepared by 

him which shall be open to the inspecbon of all members of his 

Industry division and all other interested per ons, and any departure therefrom by any member of the Indu try with respect to any 

particular customer is an unfair trade practice. Revi eel prices, as 

made from time to time, shall be filed with the Supplementary Code 

Authority to become effective ten (10) days from the receipt thereof 

by the Supplementary Code Authority and copies thereof with 

notice of the effective date, shall thereupon be immediately ent to 

all members of the same Industry Division who may file, if they 

so desire, revi ions of their price which shall become effective upon 

the date when the revi eel prices first filed shall go into effect. 

No member of the Indu try shall so clas ify his custom.ers that 

the different prices charged at the same time for the same goods 
for he am quantity t 

criminc tion w n u t 

In 1 n. 

11 

r nt cu. tomer con.·titntc unfair <lisr unfair om p ti ti n in th ndu try 

l ach m m r of th Indu try hall furni h th Suppl mentary 

cl" .1. u lwrit 

li t and r li 

r rib .

1 

RULE ~· Th.e uppl m ntary o~e Auth~rity hal~ J?~k tudies 

for th 1mphficatl n of products 1n the different d1v1 IOns of the 

In lu tr h elimination of unn cessary or infrequently demanded 

iz ~ r t\ pe and for the e tabli hment of dimen ional tandard in 

op ra ion with he Bureau of Standards of the United tate Depar ment of mmerce with the view to their recommendations for 

adop ion by the different clivi ion of this Industry. This study 

hall be ompleted ithin the period of one ( 1) year from the effec· 

ti-ve dat of thi upplem ntary Code. Such recommendations oi 

th upplementar r od uthority for a clivi ion of the Indu try, 

·hen a1 proY d by two-thirds vote of the members of the division 

of th Indu try and the Admini trator, shall become the standards 

for the livi ion and hall become ffecti-ve sixty ( 60) days after 

u h appro-....al. Thereafter, all members of the division shall follow 

uch tanclard . Failure to follow uch standards set-up by the 

nr plementar. Code Authority, so approved by the members of 

th diYi ion of the In u try and the Administrator, "-ill be an unfair 

m thod of competition and a violation of this Supplementary Code. 

ProV'ided, however~ that exception to uch standards may be appli d 

f r by formally peti ioning the Supplementary Code Authority and 

if h upplementa 'Y Code Authority does not disapprove in writin()' within ixty ( 60) day the I etition shall become final when ratified b · two-third vote of the members of such divi ion of the Indu tr and if the upplementary Code Authority di approv an 

a1 peal may be taken to the Admini trator. R E 3. Ph'acy.-To imitate or simulate a competitor catalogue 

numb r by which hi particular goods are known and identified or to 

imi at a competitor product in which he or it has acquired a o·o d 

will in de ign or lr to uch a degree as to deceive or ha v a 

t nd n . ' to d iV' u tomers or pro pective cu tomer . 

ULE 4. 01 ignn nt.- hipping good on consignment except 

under ·ir umtance to be defined by the Supplementary Code Auth rity when peculiar circum tances of the Indu try require th 

pra tic . 

ULE •. I 1npo1·t .-If it . hall develop that foreiO'n-mad good are 

:ff r at a pri e le than that which may be quote l b any m mb r 

f h In u tr UI d r tl e pro i ions of thi uppl men ary od , 

th fa ·t hall be repor d to the Supplem ntary ode Authorit , 

\d10 will tak th matt r up with the pr per v rnm nt a()' n y f r 

r li f thr UO'h a lju tm nt of the tariff. 

LE . E port.·.-Ex pt a m< b ~ ub. qn ntl . e forth in a 

pe ifi or uppl m ntary Exp rt Code for th Indu tr · th pr -

vj io of thi 'uppl m ntary ode n w or h r after ador ted ' ith 

parugrapb 2 of nl r appl'oving thl ode. 
12 

regard to prices, discounts, deductions, allowances, extras, commissions or methods and/or terms of sale, are not to apply to direct 

export sales. The term "export" shall include, in addition to 

shipment to foreign countries shipments to such United States 

possessions as may be defined by the Supplementary Code Authority 

and approved by the Administrator. 

RuLE 7. Increased Facilities to be Reported.-The present capacity of the Industry is far in excess of present o;r p~ospective need . Therefore after the effective date of this Supplementary Code no 

present member of the Industry shall initiate construction of or 

install any additional producing equipment or dies for the manufacture of lines which he i not elling or manufacturing or of 

which he has not already initiated the manufacture at the time of 

the ap~roval of this Supplementary Code without first reporting 

to the Supplementary Code Authority and to the Admini ·ti·ator the 

need for additional productive capa ity and his ability to upply it 

economically. 

If in the future any other individual, firm, corporation , partnership or other form of enterprise desires to e tablish additional 

capaciti , production,. equipment or dies for tools and implements 

as covered by this Supplementary Code he or it al o shall first report 

to the Supplementary Code Authority and the Administrator the 

same information required in the preceding paragraph. 

In both cases the Supplementary Code Authority shall report 

the fact.· to the Admini trator and state whether in its judgment 

in the present emergency public neces ity and convenience requires 

such additional capacity. 

RuLE 8. S elling B elow R easonable Oost.-\Vhen the Supplementary Code Authority determines that an emergency exists in this 

indu -try and that the cause thereof is destructiY price-cutting such 

as to render ineffective or seriou ly endanger the maintenance of 

the provisions of this Supplementary Code, the Supplementary 

Code Authority n1.ay cau e to be determined the lowest reasonable 

·o t of the products of this indu try such determination to be 

subject to such notice and hearing a the A lministrator may require. 

The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of the emergency, it shall 

be an unfair trade practice for any member of the industry to sell 

or offer to sell any products of the industry for which the lowest 

reasonable cost has been determined at such prices or upon suc.b. 

terms or conditions of sale that the buyer will pay less therefor than 

the lowe t reasonable cost of such products. 

vVhen it appears that conditions have changed, the Supplementary 

Code Authority, upon its own initiative or upon the reque t of any 

interested party, shall cause the determination to be reviewed. 

ARTICLE VI-MoNoPoLIEs 

No provision of this Supplementary Code shall be so applied as 

to permit monopolies or monopolistic practices, or to eliminate, 

oppress, or discriminate against small enterprises. 
13 

ARTr LE VII-1\IonrFr .\ TION 

uppl m ntary o l and all the pro i ions 

xpr made nbj ct to the right f the Presid nt, in 

with th provision of ub- ection (b ) of Se ·tion 10 of 

m time to tim to can el or modify any order, approval, 

li n rul or regulation is u d under aid Act. 

E TIO.r 2. By pr enting this Supplmn ntary Code the members 

of the I ndu tr do not hereby con ent to any modification thereof, 

and th r r ~ rve the right to object to any such modifications without 

b incr c;i en an opportunity to be heard. 

E TION 3. This Supplementary Code, except as to provisions 

required by the Act, may be modified or amended on the ba is of 

xperienc or han O'es in circum tances, such modifications and/ or 

amendment to be based upon application by the Supplementary 

ode Authority or other representative gToup within the industry 

to the A lmini trator and such notice and hearing as he shall specify 

and to become effective on the approval by the President, and/or the 

Admini h·ator. 

ARTICLE VIII-PRICE INCRE.A.SES 

Whereas the policy of the Act to increase real purchasing power 

will be made more difficult of consun1mation if prices of good and 

ervice increase as rapidly as wages, it is recognized that price increa e except uch as may be required to meet individual co ts should 

be lelayed but when made, such increases should, so far a po ible, 

be limited to actual additional increases in the eller's co t . 

ARTICLE IX-CONSTITUTIONALITY 

B pr nting thi Supplementary Code, those assenting hereto are 

not th reby waiving any of their constitutional rights. 

ARTICLE X-EFFECTIVE DATE AND DURATION 

Thi upplementary Code shall become effective at 12: 01 o' lock 

A.~I. Ea tern tandard Time on the tenth day after it is approved 

by th Admini trator and hall continue in effect until June 16, 1935 

or the earliest date rior thereto on which the President shall, by 

proclamation or the Concrre hall, by joint resolution declare that 

the em erg n y r cognized by ction 1 of the National Indu trial 

R ov ry Ac ha ended. 

Approved 'ode . . upplement No. 7. 

R gi try No. 114 -05 . 

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UNIVERSITY OF FLORIDA 

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