Approved Code No. 84- upplcment No. 33 Regi try No. 1140-04 

NATIONAL RECOVERY ADMIN! TRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

FLEXIBLE METAL HOSE 

AND TUBING MANUFACTURING 

INDUSTRY 

u 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON MAY 24, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRI TING OFFICE 

WASHINGTON: 1934 

For sale by the uperintendent or Document , Was hington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Goyernment 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.; 504 Post Office Built1ing. 

Birmingham, Ala. : 257 Federal Building. 

Boston, l\lass.: 1801 Cu tombouse. 

Buffalo, N.Y.: Chamber of Cc!lll!lerce Building. 

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

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, T x.: Chamber of Commerc Building. Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Cllarnber of ComnLrce Building. 

Indianapolis, Incl. : Chamber of Commerce Building. 

Jacksonville, Fla. : Chamber of Commerce Buildiug. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Ange-les, Calif.: 1163 South Broadwny. 

Loui ·ville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minn apolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 ustomhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust 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 Bui1<1ing. 
Approved Code No. 84- uppl ment No. 33 

UPPLEMENTARY CODE OF •AIR COMPETITION 

F R TBE 

FLEXIBLE METAL HOSE AND TUBING 

MANUFACTURING INDUSTRY 

As Approved on May 24, 1934 

RDER 

APPR vL.- UPPLEME TARY CoDE F FAIR l\IPETITION F OR THE 

FLEXIBLE ~IETAL HoE AND T BING ~LI\. NUFACTURIN I D , TRY 

A DIYI IO :r OF THE F. BRI .\TED M ET.AL PR D [AN FA T RIN AND 

IETAL FINL IIING A);'D l\IETAL OATING INDU TRY 

An application ha in<Y been luly made r ur uant to an l in full 

c mplianc with the pro\ i ion of Title I f the National Indn trial 

Recoverv A t, approved June 16l 1933, and in accorclanc with the 

provi i n of ection 1 of Arti le VI of the Ba ·ic Co lt> for ·i:he 

Fabricated ~Ietal Pro luct :Manufacturing and :Metal Fini hing 

and ~1 tal oatina Indu try approved November 2 1933, f r approval of a upplementary Code of Fair Competition for the Fl xi11 Ietal Ho " an l Tubing :Manufacturing Indu try and hearing 

having been dul. hell thereon; an l th annex d report n aid 

• uppJ mentary "ode containing finding with re pect thereto having b n male and lirected to the Pre i lent : 

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

tat I Hu<Yh . John on Admini trator for In lu -trial Rec very 

pur. uant to authori . ve tel in me by Executive Order. f the 

Pre icl nt including Executi' Ord r N . G543-A dat d Dec n ber 

3 . 1 33, and othenvi ; do hereb. · in orporate by r ference ail 

ann .- d r p rt and do fincl that said upplem ntary ole on plie 

in all r ] ect with th pertinent provi. i n. and will 1 r m t the 

li an l purp . e f . ail Titl of aid Act; and do hereby on1er 

that ail uprl m ntc ry o l of Fair omp titian b an 1 it is 

hereby ar I rov 1. provided. how Yel' that th proYi ·ion. f Arti 1 

VII ti n 1 in. far a the. pre ribe a waitin O' peri c1 b tw en 

tl filing with th l Authority (or u h a <Y n . r a. may b 

d . ignat l in th ode) and th ffe tiv dat f pri li ts, a. ri~inall. fil c1 and/ or r vi pric li t. or r vi d t rms an 1 onliti n · f nl b an l th . h reby ar ta. r 1 enclin,a m. ' fnr her 

rd r. 

A 1 pr ' al r omm nd d : 

A. R. 1L .... :r 'Y, 

1-I ,n . J on ... . N 

Admini tTat 01' f o,· l ndu. t 1·ial R or 1'-y. 

Di ·i.·ion Adm i1 i.c: t·rator. 

' VA. III · T _ .. , 

~1 ay B,i 1.934. G21 7°-344- 13U-a4 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The TV hite H mtSe. 

Sm: This is a report on the Supplementary Code of Fair Competition for the Flexible Metal Hose and Tubing Manufacturing Industry, a division of the Fabricated Metal Products Manufacturing 

and Metal Finishing and :Metal Coating Industry, the hearing having 

been conducted thereon in Washington, D.C., January 23, 1934, in 

accordance with the provisions of Title I of the National Industrial 

Recovery Act. 

GENERAL STA TElVIENT 

The Flexible Metal Ho~e and Tubing M.<tnufacturing Industry, 

being truly representative of this division of the Fabricated Metal 

P roducts Manufacturing and Metal Finishing and l\1etal Coating 

Industry, has elected to avail itself of the option of submitting a 

Supplementary Code of Fair Practice, as provided for in Section 

1 of Article VI of the Basic Code, for the Fabricated ~:f eta l Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

approved by you on the second day of November, 1933. 

UESUi\IE OF THE CODE 

Article I states t he purpose of the Supplementary Code. 

Al-ticle 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 l\1etal Coating 

lndu try and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supl:-'lementary 

Code. 

Article IV establishes a Supplementary Code Authority consisting 

of six (6) members elected by the members of the Industry at a 

meeting called by the Supplementary Code Authority, of which one 

shall be a non-member of the Flexible Metal H o e and Tubing I nstitute, and gives the Administrator the authority to appoint one 

additional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. 

Article V sets forth the cost accounting procedure to be used by 

the Industry upon the approval of the Administrator. 

Article VI provides against selling products at le s than cost 

to the seller. 

Article VII provi les for the filing o£ price lists and discount 

c::heets with the Supplementary Code Authority. 

Article VIII sets forth the unfair trade practic~s of this Sup:plementary Code which has been especially designed to offset unfair 

competition in this division of the Industry. 

(2) 
proYides against monopolies an monopolistic 

bmited to actual 

men tar" 

and duration of this Suppl~-

FINDING 

Deputy Administrator in his final report to me on said 

upplementary Code having found as herein set forth and on the 

basis of all the proceedings in this mattel': 

I find that: 

(a) Said Supplementary Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

ct, including removal of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

ancl will provide for the general welfare by promoting the organization of industry for the purposes of cooperatiYe action among the 

trade groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervision, 

by eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

by aYoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reJucing 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 respect 

with the pertinent provisions of said Title of said Act, including 

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 1nembership therein. 

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

permit monopolies or monopolistic practices. 

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

liminate or oppress small enterprises and will not operate to diecriminate against them. 

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

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

·aid Supplementary Code. 

Tor these reasons, therefore, I have approved this Supplementary i - 1c. 

Respectfully, 

MAY 24. 19:34. 

IIucn S. ,JoHN 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE FLEXIBLE ]}fETAL I-IOSE AND TUBING MANU- · 

FACTURINGINDUSTRY 

A DIVISION OF THE FABRICATED JUETAL PRODUCTS MANUFACTURING AND 

METAL FINISHING AND METAL COATING INDUSTRY 

AnncLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

H.ecovery Act, the following provisions are established as a Supplen1entary Code of Fair Competition for the Flexible Metal Hose and 

Tubing Manufacturing Industry, pursuant to Article VI of the Basic 

Code of Fair Competition for the Fabricated JYietal Products Manufacturing and J\1etal Finishing and Metal Coating Industry, approved 

by the President of the United States on the second day of November, 

1933, and the provisions of this Supplementary Cod shall be the 

standard of fair comp titian for the Industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term " Flexible Metal Hose and Tubing :Manufacturing Industry" means the manufacture for sale of Flexible Metal 

Ho e or Flexible Metal Tubing and/ or American Gas A sociation 

flexible gas (illuminating) tubing and/or gasoline and oil feed lines 

haYing a flexible metal tubing linina, together with couplings or connections commonly used with any of the above andj or couplings for 

cotton covered rubber-metal gasoline hose a-1d the sale thereof by the 

manufacturer of such product as a finishod article as distinguished 

from . ale thereof as an incidental part of some other article or devise. 

Nothing in this section shall be construed to embrace flexible metal 

tubing lined, rubber covered and/or cotton jacketed hose of the. type 

listed by the Underwriters Laboratories Inc. and ordinarily used for 

the conveying of gasoline, oils and solvents or for paint spraying. 

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

used herein shall mean r spectively Title I of theN ational Industrial 

Recovery Act, the Presid~mt of the Unit d States and the Administrator for Industrial Recovery. 

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

includes but without limitation any individual, partnership, as ociation, corporation or other form of enterprise engaged in the Industry either us 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 of Fair Competition for the Fabricated Metal 

Products 1fanufacturing and Metal Finishing ::mel Metal Coating 

In iustry as approved by the President of the United States on the 

second day of November, 1933. 

(4) 
5 

an ne 

ufpl mentar. od Authority a u cl 

''"hich i t admini. t r thi upr lem ntar 

vi1 1. 

ARTICLE III-EMPLOYMENT PROVISION 

Thi · Inclu try i a clivi ion of the Fabricated Metal Products 

ltianufa turing and :Metal Finishing and Metal Coating Indu try 

and with ut limitation the wage, hour and labor provi ion in 

Articl III of it Ba ic Code a ar proved by the Pre.·ident, November 

2 1933, including Section 1 of said Article III, by which the provi i n f ub ections (1) (2) and (3) of Section 7, (a) of Titl I 

of the Ae are mad conditions of thi Code, are specifi ally incorporate 1 h r in and made a part h reof as the wage, hour an l labor 

I roYi. ion of thi Sur plementary Code. 

ARTICLE IV-ORGANIZATI N .AND ADMINISTRATION 
6 

(b) One member who is a member of this Industry, but not a 

member of the Institt1te to be selected and elected by the nonmembers of the Institute present in per on or by proxy, each member to 

have on vote. 

In cas" the non-memb rs fail to elect the non-member as hereinabo.,..re provided, the A lministrator shall appoint such non-member 

from a Ji. t of four non-mcmbars to be furnished by the Confidential 

Agent. 

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

of the Su1 plementary ode Authority, provided, however, that the 

representation as et forth in Section 1, Subsections (a) and (b) of 

thi · Article ·hall be maintained. 

In addition thereto the Administrator may appoint a member to 

the Supplementary Code Authority who shall be without vote and 

shall . erve without expense to the Industry, unless the Supplementary Col Authority agree. to pay such xpen e. The repreentativa who may be appointed by the Administrator hall be given 

reasonabl notice of and may sit at all meetino· of the Supplementary Code Authority. 

SE 'TIO:N 2. Any A ociationjlnstitute dir ctly or in lirectly par- ticipating i1, th . lection or activities of th 'npplement~ry Code 

Authority ·hall (1) impose no inequitable restrictions on membership, and (2) shall submit to the Admini. tl·ator true copies of its 

Articles of As. ·ociation, By-Laws, Reg11lations and any amendments 

when made thereto, together with such information as to membership, organiz')tion, anJ activities as may be necessary to effectuate 

the purpo ·e · of the Act. 

SE ·noN 3. In order tha.L the Supplementary Code Authority shall, 

at all time , be truly representative of the Inclu try and in other 

re pects comply with the provisions of the Act the \..dministra.tor 

may pre ribe u h I-Iearings as he may r on~ bly deem proper; 

and, thereafter, if he shall find that the uppl mentary Code Authority is not truly repre entat.ive or doe not in other re pects comply 

with the provi ions of the Act, may require removal of any or all 

of th member thereof and may make approprjate modification or 

modifications in the method of selection of the Supplementary Code 

Authority. 

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

of employees during the hours and at the places of their employment. 

Standar ls for safety and health shall be submittacl by the Supple- mentary Code Authority to the Administrator within six ( 6) months 

after the effective date of the Supplementary Cod . SECTION 5. All members of the Indu try are subject to the jurisdiction of the Supplementary Code; shall be entitled to participate 

in and share the benefits of the Supplementary Code; shall be en- titled to vote in the selection of members of the Supplementary 

Code Authority as provided in Section 1 of this Article. SECTION 6. It being found nece ary, in order to support the administration of this Supplementary Code anrl to maintain the standard · of fair competition established by this Supplementary Code 

an l to effe tuate the policy of the Act, the Supplementary Code 

Authority is authorized, subject to the approval of the Administrator: 
7 

(a) To incur n h rea ~ nabl ar n . ar. · and 

prop r for th for ing purp · an t t m et ·u h oblio·ation"' nt 

f fund whi h may b rai d a h, r inafter I ro ide l and which 

hall b h ld in tru t f r th purpo e of th uppl m ntar. de; 

b) T ubmit to th Admini trator f r hi. approval ubj t to 

u h n ti an l opportunity to b hear 1 a he may deem nee ary, 

(1) an itemize l bud a t of i~· e timate l exp n s for th for aoing 

purp and (2) an equitabl basi upon which the fun ls ne es ary 

t npport u h buda t hnJl b ontributecl by memb r " o£ tl e 

In lu tr ; 

( ) fter u h bud(J'et and ba i of contribution have be n apprm· l by the A lmini trator, to determine and secure equitable contributi n a above t forth by all uch members of the Industry, 

and to that end if nee ary, to institute legal proceedina therefor 

in it own name . 

E TI N 7. Only member of the Industry complying with the 

UI plementary Code and contributing to the expenses of it adn1in- i tration a· provided in Section 6 hereof shall be entitled to participa in the ...,election of the members of the Supplementary Code 

Authori 'y a provided in Section 1 hereof or to receive the benefit of 

its voluntary activi ies or to make use of any emblem or in io·11ia of 

th N atio 1al Recovery Administration. · 

:::3E"'TION . Nothing contained in this Supplementary Code shall 

onstitute the members of the Supplementary Code Authority partner for any purpose. Nor shall any member of the Supplementary 

o l Authority be liable in any manner to anyone for any act f 

any other member, officer, agent or employee of the Supplementary 

Cod \.uthority, nor shall any 1nember of the Sui plementary Code 

Au.Lhority, exercising reasonable dili&ence in the conduct of his 

dutie h reuncler, be liable to anyone tor any action or omi ion to 

act und r thiN Supple1nentary Code, except for his own wilful 

mal£ a anc or non-feasance. 

SECTIO.. 9. The Supplementary Code Authority shall also from 

time to time furnish to the Ba ic Cole Authority, designated in aid 

Ba ·ic Cole uch information as may be required to be fnrni h d 

uncl r terms of aid Basic Code. 

E TION 10. The Supplementary Code Authority hall have all 

the po\lers an l duties which shall be nece sary or proper to enable 

it t fully admini ter this Code and to eff ctuat its purpo . 

Without limi ation to the foregoina or any other pow rs or duties 

provi led for in thi u1 plcmentary Co e) the Supi lementary Co e 

Authority hall hav th followino· spocific dutie , subject t uch 

rule ancl r ulations as the Aclmini trator may pre cribe. 

(a) To adopt -Lav. and Rul and R aulation · for, and keep 

re rd.· of j L · pr edure and for the admini tration of the upplem n ry Code un ler such rul · an l reanlations a may b recrib cl by the A lmini trator. 

(b) Th ~ up1l m ntary C c1 A nth rity hall de~ io-nat a on- fid ntial \,..: nt wh . hall ll · all b.ta ne c ary f r th admin- i. trab n f tbi. uppl m ntary oc.lc. u h Confidential Aaent 

. hall h lcl all data in tri t · nfi len x ept as i needed for the 

acl1 1inistratio 1 f tbjs nppl m ntary oclc. 
8 

(c) To obtain from members of the Industry through the Confidential Agent such information and reports as are required for 

the administration of the Supplementary Code. In addition to information required to be submitted to the Supplementary Code 

Authority, ·members of the Industry subject to this Supplementary 

Code shall furnish such statistical information as the Administrator may deem nece ary for the purposes recited in Section 3 (a) 

of the Act to such Federal and State agencies as he may designate; 

provided that nothing in this Supplcmantary Code shall r elieve any 

member of the Industry of any existing obligations to furnish 

reports to any government agency. No individual r eport shall be 

disclosed to any other member of the Industry or any other party 

except to uch other governmental agencies as m<1y be directed by 

the Admini trator. 

(d) To use . uch trade associations 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 r e._ponsibilities under this Supple- mentary Code and that snch trade a sociations and agencies shall 

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

(e) To make recommendations to the Administrator for the co- ordination of the Administration of this Supplementary Code with 

such other codes, if any, as may be related to the Industry. 

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

proportionate payment for the reasonable expenses of maintaining 

the Supplementary Code Authority and its activities. 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the Indu try 

who have assented to, and are complying with, this Supplementary 

Code. (h) To recommend to the Administrator further fair trade practice provisions to govern members of the Industry in their relations 

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

Admini trator measure for industrial planning, including stabilization of employment. SECTION 11. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof is unfair 

or unjust or contrary t o the public interest, the Administrator may 

require that such action be suspended 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 may be taken if approved by the Administrator but 

shall not be taken if disapproved by the Administrator within thirty 

days of notice to him of intention to proceed with such action. SECTION 12. Any or all information furnished to the Confidential 

Agent pur ·uant to the provisions of the Supplementary Code by 

any corporate member of the Industry specifically assenting hereto 

pursuant to the provisions of this Supplementary Code shall be 

subject to checking for the purpose of verification by an examination 

of the pertinent books and accounts and records of such member 

by the Confidential Agent or by any accountant or accountant~ or 

other person or persons designated by the Supplementary Code 

Authority (none of whom shall be connected with any member of the 
9 

Industry) and u j t to di appr L l by th A lmi ni Lt·ator and hall 

b o he ke r uch purp if the , 'uppl m nt:1ry ole uthority shall rcquir it. Th t of nch .~ t ·h xamination , l all l> 

treated a an :qwn · of ad mini ring h 'uppl mentary ,ode. 

With re ·pect t hat p rbon f his proclnct ' hich i. within he 

Indu ry very member of the Indus ry hall lr·e an ac unting 

y tern f r etcrmiuing hi allowable o t whi h onform t th 

principle of and i at lea t as detailed and complet a , th uniform 

method f accounting, and the uniform meth d of costing to be 

formulated by the upplementary Cod uthority and approved y 

the Admini trator with ·uch ariation therefrom a may b re- quired by the individual conditi n ::dfectina any member or aronp 

of member f the I ndu try, and · may be approved by the Supple- mentary C lc Authority and the Aclministra or. 

ARTICLE VI SELLI..:~G B_LOW c . 1' 

No mem r of this Indu try shall s ll or exchange any product of 

the Inclu"tr at a price, or upon term" and condition , which will 

re ult in the purcha er paying for the goods received, less than the 

allowable co t thereof to the seller, determined in a cordance with a 

uniforn1 method of co ting as pr:ovided in Article V, provid 1 however that dropped lines or seconds, or in -entories which·mu t be converted into ca h to meet emergency ne2ds may be di posed of by any 

member of the Industry, at any price and on any terms and conditions, but nJy if such member of the Industry not less than t o 

weeks befor nch dispo al, has filed with the Supplementary ode 

Authori y, or it confidential agent, a statement in writing, etting 

forfh the facts of and reasons for, such proposed disposal, and provided further that any member of the Industry may sell below his 

costs in ord r to me t competiti'e pric s that do not violate thi · up- plementar ode filed in accordance ·with the provi ions of Arti le 

VII of this 'uppl mentary Code or to meet competition from prodnets of quiYalent de ign character, quality or specification , mann- fa tured ,ut. ide the Unite Stn.te , provided that he ha fir..,t · 

reported to the upplementary Code Authority and in such r p rt 

has cited the comp titian which caus cl him to tak such action. 

AnTI LE \ II-Pm Joj LI TS 
10 

through its Confidential Agent shall immediately send copies thereof 

to all known manufacturers of such products. Such price lists shall 

be available to all interosted buy~rs at the office of the Confidential 

Agent. 

Revised price lists and/ or discount 1:-heets and/or all other conditions of sale may be published and filed from time to time thereafter with the Supplementary Code Authority through its Confidential Agent by any member of this Industry, but such revised 

price lists and/ or discount sheets and/or all other conditions of sale 

shall be filed with the Supplementary Code authority through its 

Confidential Agent and shall become effective five ( 5) business days 

after actual receipt by the Confidential Agent. Copies of such revised price lists and/ or discount sheets and/or all other conditions 

of sale, with notice of the effective date thereof, shall be immediately 

sent to all known manufacturers of such products and shall he avail- able to all interested buyers at the office of the Confidential Agent; 

and any member of this Industry may file , if he so desires, revisions 

of his price lists and/ or discount sheets and/or all other conditions 

of sale, which shall become effective at the date when the revised 

price lists and/ or discount sheets and/ or all other conditions of sale 

first filed become effective, provided that he shall not establish prices 

lower, nor discounts greater, nor conditions of sale more favorable 

than those contained in the revised price lists and/ or discount sheets 

and/ or all other conditions of sale first filed. 1 

SECTION 2. If and when the Supplementary Code Authority shall 

determine tl1at in any branch or subdivision of the Industry, not now 

selling its product on the basis of price lists, with or without discount sheets, with fixed terms of sale and payment, the distribution 

or marketing conditions in said branch or subdivision are the same 

as, or similar to, the distribution and marketing conditions in a 

branch or subdivision of the Industry where the use of price lists, 

with or without di cotmt sheets, and other fixed conditions of sale, 

is well recoO'nized, and where the use of price lists, with or without 

discount sheets with other fixed conditions of sale should be put 

into effect in such branch or subdivision, then each manufacturer of 

the product or products of such branch of subdivision shall within 

twenty (20) days after notice of such determination, file with the 

Supplementary Code Authority or its Confidential Agent, net price 

lists or price lists and discount sheets, containing all other fixed 

condition of sale, and uch price lists and/ or discount sheets andjor 

other fixed conditions of sale may be thereafter revised in the manner 

herein above provided; provided, however, that the Supplementary 

Code Authority shall make no determination to place any product 

of the Indu try (not now on a price list basis) on a price list basis 

as provided in this Section 2 of Article VII unless two thirds of the 

m_embers of the Industry who are at that time engaged in manufacturing such product shall affirmatively consent that such determination be made. SECTION 3. Each member of the Industry shall furnish the Sup- plementary Code Authority for distribution with such number of 

copies of his price lists and/ or discount sheets as the Supplementary 

Code Authority may prescribe. 

1 See paragraph 2 of order approoving this Code. 
11 

AnTICLE VIII-U ~F Am Tn"\DE PRA TICES 

In addition to the Unfair Trade Practices covered l y Article V 

of the Ba ic Code (except Section A which i. not mad a part of 

this u pplemen tary Code) and for all purposes of thi. S n pplementary Code the following describe l acts hall constitute unfair practice . Any n1ember of this Indu try who shall directly or indir ctly 

through any officer, employee, agent or repre cntative usc or employ 

any of such unfair practices hall be guilty of a violation of thi., 

Supplementary Code. SECTIO~ 1. Defaults : Neglect by a member of the Indu try to enforce contract , or Yariation from the terms or conditions of con- tracts when e tn.bli hed, in order to influence sale , or as a means of 

evading price schedules, is ·forbidden as unfair competition. 

SECTION 2. Lump Sum Bidding: It is an unfair method of competition to quote a total price, or a lump sum, on a schedule of products or materials, either without indicating in such bid the net price 

of each individual item or by quoting a total price on any other 

ba is than the total of the published unit prices. Any variation 

therefrom by addition or deduction, except on the same basis of the 

published unit price is also an unfair method of competition except 

that a price for a complete assembly, namely, a section of hose with 

couplings attached, is permi sible. SECTI N 3. amples: It is an unfair method of competition for 

any manufacturer to hip and deliver on any order which was ac- cepted ba cd on c:amples submitted, any product or material not in 

strict accor lance with the samples on which the order was based. ECTION 4. Interference with Another's Contracts: No member of 

this Indu try hall knowingly attempt to induce the breach of any 

written contract between a competitor and his employee, r present -

tive ao·ent or eli tributor, en tomer or source of supply; nor shall 

any uch member knowi_r1gly interfere with or ob truct the perform- ance of uch ontractual cluti or ervices. This clause hall not be 

con trued to apply to contract of employment. 

ECTION 5. Cla ification: The fal e classification of any product of 

this In ln try for the 1 urpo ·e of securing fr iaht ra low r than 

ould apply to the rocluct. if properly la ified, hall b an unfair 

m tho l of mp tition. 'E TIOK 6. mbinat.ion al s: N m mb r of this Indu try ·hall 

· ll r ff r to . ll omm <.lities other than products f thi Indu try 

for the purp se of influencino- a ale, at pri b low the invoi e pri 

plus all inci l nt l c -ts f uch I ro lu b. If and wh n the profluct 

of thi Indu try ar sold in c mbination with I r ducts of ther in-
12 

dustries, the invoice must clearly show the unit price for all articles 

listed. 

SECTION 7. E xport T rade.-( a) No provision of this Code r elating 

to prices or terms of selling, hippinr.: or mark:eting, shall apply to 

export trade or sales or shipments for export trade. " Export 

Trade " shall be as defined in the Export Trade Act adopted April 

10, 1918. 

(b) Selling for export by any member of the Industry any product 

of the Industry which is not actually exported, as hereinabove defined in subsection (a) of this section shall be deemed a violation of 

this Supplementary Code. 

SECTION 8. T erntS of Payment.-(a) Terms of payment shall not 

be more favorable to the purchaser than net cash thirty days or one 

percent discount for cash for payment as follows: Bills dated the 

first to the fifteenth inclusive, if paid on or before the twenty-fifth of 

the month; bills dated the sixteenth to and including the last day of 

the month, if paid on or before the tenth of the following month. 

Bills will be dated the day of shipment. On accounts not paid within 

forty-five clays from the end of the month in which bills are rendered, interest will be charged at the rate of six percent or the legal 

maximum, whichever is lower per annum beginning on the first of the 

month following the date on which payment is due, but no interest 

a·mounting to less than one dollar shall . be charged. Bills for such 

interest will be rendered monthly. 

ARTICLE IX-MONOPOLIES 

No provision of this Supplementary Code shaH be so applied as 

to permit monopolies or monopolistic practices, or to eliminate, 

oppress or discriminate against small enterprises. 

ARTICLE X-MODIFICATIONS 

SECTION 1. This Supplementary Code and all the prov1 1ons 

thereof are expressly made subject to the right of the President, in 

accordance with provision · of ubsection (b) of Section 10 of the 

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

license, rule or regulation issued under said Act. 

~ECTION 2. This Suplementary Code, except as to provisions required by the Act, may be modified or amended on the basis of 

experience or changes in circum tances, 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 XI-PRICE INCREASES 

Whereas the policy of the Act to increase r eal 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 
13 

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