V 

Approved Code No. 347-Supplement No. 38 Registry No. 1399-42 

NATIONAL RECOVERY AD1\1INISTRATION 

SUPPLEMEN'TARY 

CODE OF FAIR COMPETITION 

FOR THE 

JACK M~t\.NUFACTURING 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

u. 

AS APPROVED ON AUGUST 1, 1934 

WE DO OUR PAJlt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASIDNGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. • • • • • • • • Price 5 cents 
This publicati(Jn is for sale by the Superintendent of Documents, Government 

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 Building. 

Birmingham, A.la. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, 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. 

H ouston, 'l'ex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, 1\fo.: 1028 Baltimore A.venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York. N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philaclelpbia, Pa.: 422 Commercial Trust Building. 

Pittsb-urgh, Pa. : hamber 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. 347-Supplement No. as 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

. 

JACK MANUFACTURING INDUSTRY 

As Approved on August 1, 1934 

~ORDER 

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE 

JACK MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Jack Manufacturing Subdivision of Machinery and Allied Products Industry, and hearings 

having been duly held thereon and the annexed report on said 

Supplemental 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 Orders of the 

President, including Executive Order No. 6-543-A, dated December 

30, 1933, and otherwise i do hereby incorporate by reference said 

annexed report and do nnd that said Supplemental 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 Supplemental Code of Fair Competition be and it is hereby 

approved subject to the following conditions: 

( 1) That the provisions of Article VIII, Section (a), insofar as 

they prescribe a waiting period between the filing with the Code 

Authority and the effective date of revised price lists and/or discount sheets and/or terms of sale and payment, be and they hereby 

are stayed pending my further order; 

( 2) That the provisions of Article VIII, Section ( e) be and they 

hereby are stayed pending the submission by the Subdivision of satisfactory evidence to the Administrator of the need of these provisions 

in the sale of its products; 

( 3) That the provisions of Article IX, Section 5 be and they 

hereby are stayed for a period of fifteen (15) days, then to become 

77614°-1044-11-34 (1) 
2 

effective unless I by my further order otherwise direct; within which 

time cause may be shown, if any there be, why the above provisions 

should not become effective; and 

( 4) That the provisions of Article IX, Sections 6 and 7 be and 

they are hereby stayed pending my further Order. 

HUGH s. JOHNSON' 

Admuinistrator for Industrial Recovery. 

Approval recommended: 

BARTON vv. MURRAY, 

Division Ad1ninistrator. 

WASHINGTON, D.C., 

Au,gust 1, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

DEAR Srn: This is a report on the Supplemental Code of Fair 

Competition for the Jack Manufacturing Subdivision of Machinery 

and Allied Products Industry, a Public Hearing on which was held 

in Washington, D.C., on December 21, 1933. The Hearing was 

conducted in full accordance with the provisions of Title I of the 

National Industrial Recovery Act. 

GENERAL STATEMENT 

The Jack Manufacturing Subdivision being representative of the 

manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Supplemental 

Code of Fair Competition as provided in the second paragraph of 

Article I of the Code of Fair Competition for the Machinery and 

Allied Products Industry, approved by you on the seventeenth day 

of March, 1934. 

The Jack Manufacturing Subdivision means the manufacture for 

sale of jacks and parts thereof used o-enerally in the construction, 

railroad, mining, and general industrial field, ·exclusive of automotive 

jacks, and includes all those engaged in such manufacture for sale. 

ECONOMIC EFFECT 

This Subdivision has been severely affected by the depression. 

This is evidenced by the steady decline in annual sales from $2,419,000 

in 1929 to $516,000 in 1932, or 78.7 per cent. Sales for the first seven 

months of 1933 were estimated at $345 000. 

In 1929 this Subdivision employed 293 factory workers, which 

total declined to 105 in the second quarter of 1933, or 64%, and 

increased to approximately 160 as of October 15, 1933. 

Approximately 26% of the factory workers were working more 

than 40 hours per week during the week of June 15, 1993. The 

average work week declined from 47.5 hours in 1929 to 28.0 hours 

as of June 15, 1933, then increased to 30.5 hours as of October 15, 

1933. 

Approximately 17.5 per cent of the total factory workers employed 

as of June 15, 1933, were receiving less than 40 cents per hour; 14.4 

per cent were receiving less than 38 cents per hour; and 5.6 per cent 

were receiving less than 32 cents per hour. 

The wage provisions for the Subdivision, which is operating under 

the Code of the Machinery and Allied Products Industry, provide 

that employees engaged in plant operations shall be paid as follows: 

(1) in cities of more than 50,000 population and their immediate 

(3) 
4 

vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not 

more than 50,000 population and their immediate vicinity, which 

cities are not in the immediate vicinity of a city of more than 50,000 

population, 38 cents pe.r hour; (3) in cities of 10,000 population or 

less and their immediate vicinity, which cities are not in the inunediate vicinity of a city of more than 10,000 population, 36 cents per 

hour, except that employees engaged in plant operations in all localities in the states of Virginia, North Carolina, South Carolina, 

Georgia, Florida, Tenne. see, Alabama, Mississippi, Arkansas, Louisiana, Texas, and Oklahoma, shall be paid not less than 32 cents per 

hour. 

1Vhen females do substantially the sa1ne work as males or replace 

males, they shall receive the same pay. However, no female employee shall be paid less tha:r,_ 871⁄2 % of the proper rate for the 

locality in which employed. 

Employees other than :ho e engaged in plant operations shall 

receive not less than $15.U0 per week. 

Office boys and girls and apprentices shall be paid not less than 

80% of the minimum wage. 

This Supplemental Code provides that no person under sixteen 

years of age shall be employed in this Subdivision. 

RESU~IE OF SUPPLEMENT.AL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Subdivision as used in this Supplemental Code. . Article III provides for the adoption of the employment provisions of the Code of Fair Competition for the 1\fachinery and Allied 

Products Industry as approved by you MRrch seventeenth, 1934, and 

as from time to time amended. 

Article IV provides for the adoption of Articles II, VI and VIII 

of the Code of Fair Competition for the Machinery and Allied Products Industry in accordance with the condition of this Article governing their adoption. 

Article V provides for the establishment of the Code Authority 

and defines its powers and duties. 

Article VI provides for an accounting system and methods of cost 

finding and/or estimating. 

Article VII provides that no products shall be sold or exchanged 

below a reasonable cost when the Code Authority determines that 

an emergency exists. 

Article VIII provides for methods of settina up, revising, and 

filing price lists and discount sheets and terms of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Article X establishes that no provision of this Supplemental Code 

relating to pricing and marketing shall apply to export trade. 

Article XI establishes that all provisions of this Supplemental 

Code are expressly made subject to the right of the President in 

accordance with Subsection (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. Provision is also made that modifications may be submitted by the Code Authority. 
5 

Article XII provides means for withdrawal of this Subdivision 

from the Basic Code and its continuance as an autonomous Code. 

Article XIII establishes that no ];)rovision of this Supplemental 

Code shall be so applied as to p 0 rm1t monopolies and monopolistic 

practices or to eliminate, oppress, or discriminate against small 

enterprises. 

Article XIV states the effective date of this Supple~ental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplemental Code having found as herein set forth and on 

the basis of all the proceedings in this matter : 

I find that: 

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

policies and purposes of Title I of the National Industrial Recovery 

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

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting- the organization of industry for the purpose of cooperative act10n among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and supervision, by eliminatin~ 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 pr oducts through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

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

employees; and is not classified by me as a majo; industry. 

( c) The Supplemental 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 association representative of the aforesaid 

Subdivision; and that said association imposes no inequitable restrictions on admission to membership therein. 

( d) The Supplemental Code is not designed to and will not p~rmit monopolies or monopolistic practices. 

( e) The Supplemental Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 

against them. 

(f) Those enga 0 ·ed in other steps of the economic process have not 

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

Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, provided that certain provisions relating to price publication, 

trade practices and product sale are stayed as stated in the Order. 

Respectfully, 

AUGUST 1, 1934. 

HUGH s. JOHNSON, 

Adminutrafor. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE JACK MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplemental Code of Fair Competition for the Jack Manufacturing Subdivision of the Machinery and Allied Products· Industry, and together with the Code of Fair Competition for the 1\1achinery and 

Allied Products Industry, shall be the standard of fair competition for this Subdivision, and shall be binding on every employer 

therein. 

ARTICLE II-DEFINITIONS 

"A pplic(JJ}1,t " means the Jack Manufacturing Association, a trade 

organization, all members of which are engaged in the manufacture 

for sale of the products of the Jack Manufacturing Subdivision 

of the Machinery and Allied Products Industry. 

"Industry" means the Machinery and Allied Products Industry, 

as defined in its Code as approved by the President, and as such 

definition may from time to time be amended. 

"Swbdiv·ision" means the Jack Manufacturing Subdivision of the 

Machinery and Allied Products Industry as defined and set forth 

in paragraph 16 of Article II of the Code of Fair Competition for 

the Machinery and Allied Products Industry as follows: 

"Jack Manufacturing Subdivision means the manufacture for 

sale of ja-cks and parts thereof used generally in the construction, 

railroad, mining, and general industrial field, exclusive of automotive jacks, and includes all those engaged in such manufacture for 

sale." 

"Oode" means the Code of Fair Competition for the :Machinery 

and Allied Products Industry as approved by the President March 

17, 1934, and as from time to time amended. 

"Person" means a natural person, a partnership, a corporation, 

an association, a trust, a trustee, a trustee in bankruptcy, a receiver 

or other entity. 

"Employer" means a.ny person engaged in this Subdivision either 

on his own behalf or as an employer of labor. 

"Ernployee" means any one who is employed in the Subdivision 

by any such Employer. 

"The Act" means Title I of the National Industrial Recovery 

Act. 

" The President" means the President of the United States. 

"The Ad1ninristrator" means the Administrator for Industrial 

Recovery. 

(6) 
7 

"Basic. Oode Au,thority" means the Code Authority for the 

Machinery and Allied Products Industry as constituted by the Code. 

"Oode .Authority" means the Code Authority constituted for this 

Subdivision as provided by the Code and by this Supplemental Code. 

"Group Oode Authority" means the Code Authority for any 

group or product classification within this Subdivision. 

"Publish" means to make available to the public. 

ARTICLE III-EMPLOYMENT PnoYISIONS 

The following Articles of the Code, viz: Article III, "Working 

Hours "· Article IV " Wages "· and Article V " General Labor Pro-

, ' ' ' visions" are hereby ma.de a part of this Supplemental Code, with 

the ~ame effect as if they were written into this Supplemental Code. 

ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE 

The following Articles of the Code, viz : Article II, " Definitions ", 

Article VI, "Administration", to the extent that they shall be applicable to this Supplemental Code as such or as it may hereafter be 

administered as an autonomous Code; and Article VIII, " Modifications and Termination", are hereby adopted and made a part of 

this Supplemental Code, with the same effect as i:f they were written 

into this Supplemental Code. 

ARTICLE V-AnMINISTR.ATION 

(a) A Code Authority for this Subdivision is hereby constituted 

to administer and supervise and to facilitate the enforcement of the 

Code and of this Supplemental Code in the manner and to the 

extent provided in the Code and in this Supplemental Code. 

(b) During a period not to exceed sixty (60) days following the 

effective date and pending the election of the permanent Code Authority, the executive committee of the Applicant shall constitutB a 

temporary Code Authority. 

( c) This Subdivision, having held an election for permanent Code 

Authority under the provisions of the Code of Fair Competition for 

the ~1achinery and Allied Products Industry, the Code Authority 

so elected shall constitute the first permanent Code Authority for 

this Subdivision if this method of election meets with the approval 

of the Administration. If this method of election does not meet with 

the approval of the Administration then the provisions hereinbelow 

provided shall apply for the election of the first permanent Code 

Authority. For elections after the first, the provisions of this Supplemental Code for election of a permanent Code Authority shall 

apply. 

( d) The Applicant shall, by written notice mailed (registered) 

to all employers known to the Applicant after a reasonably diligent search, call a meeting of employers to be held within sixty (60) 

days after the effective date for the purpose of adopting procedural 

rules and regulations for the election, organization and operation of 

the permanent Code Authority and electing a permanent Code Authority, which shall· consist of not less than three nor more than 
8 

five members. The Administrator may, in his discretion, appoint one 

additional member ( without vote and without expense to the Industry). The permanent Code Authority so elected and appointed shall 

succeed the temporary Code Authority. 

(e) Any employer shall be entitled to vote at the election of the 

permanent Code Authority and at other meetings of employers and 

share in the benefits of the activities of Code Authority and participate in any endeavors of Code Authority in the preparation of 

any amendments or revisions of, or additions or supplements to this 

Supplemental Code by paying or agreeing to pay, as and when 

assessed, his proper pro rata share of the reasonable cost of creating 

and administering this Supplemental Code as determined by Code 

Authority, which is to be com:puted on the basis of the number of 

employees, or on any other equitable basis. If the employee basis is 

used, the average number of persons employed by each employer, 

for assessment purposes, shall be fixed by the Code Authority prior 

to the beginning of each fiscal year, based upon the average number 

of persons employed during the preceding calendar year, and such 

figures shall not be changed during the fiscal year for which fixed. 

( f) Action by employers in any Subdivision meeting for the election of Code Authority shall be by vote of the employers entitled to 

vote as provided in Section ( e) of this Article V, each such employer to have one vote only. Action by employers in any Subdivision meeting for the adoption of procedural rules, revisions or 

additions to the Supplemental Code, or the transaction of other business of the Subdivision under this Supplemental Code, shall be by 

vote of the employers in the Subdivision who are entitled to vote 

thereat, as provided in Section ( e), Article V of the Supplemental 

Code and are present in person or by proxy duly executed and filed 

with Code Authority; cast and computed in the manner provided in 

Section ( d), Article VI of the Code. All questions as to the number 

of votes which each employer shall be entitled to cast at any meeting 

of employers other than the meeting held to vote for the election of 

the permanent Code Authority shall be determined by Code Authority in accordance with Section ( d), Article VI of the Code. 

(g) Employers in this Subdivision having a common interest 

and common problems may be grouped by Code Authority for 

administrative purposes. There shall be a Group Code Authority 

approved· or appointed by Code Authority for each such group. 

(h) In order that the Code Authority shall at all times be truly 

representative of the Subdivision and in other respects comply with 

the provisions of the Act, the Administrator may provide such 

hearings as he may deem proper; and thereafter if he shall find 

that the Code Authority is not truly representative or does not in 

other respects comply with the provisions of the Act, may require 

an appropriate modification of the Code Authority. 

( i) If formal complaint is made to Code Authority that provisions 

of this Supplemental Code have been violated by any employer, 

Code Authority or the proper Group Code Authority may investigate such complaint and, to the extent permitted by the .Act, cause 

such investigation 0r audit to be made, as may be deemed necessary. 

If such investigation or audit is made by or for Group Code Authority it shall report the result of such investigation or audi~ to 

Code Authority for action. 
9 

(j) The Code Authority may appoint a Trade Practice Committee 

whic!h 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 trade practices to govern the relationships between production and distribution employers under this 

Supplemental Code and under such others to the extent that such 

fair trade practices may be proposed to the Administrator as amendments to this Supplemental Code and such other codes. 

(k) Except as otherwise provided in the Act, all individual sta- tistics, data and information filed in accordance with the provisions 

of the Code shall be kept confidential, except with the consent of 

the member filing such statistics or data as to his individual statistics. The statistics, data, and information of one employer shall 

not be revealed to any other employer, except that for the purpose 

of administering or enforcing the provisions of this Code, Code 

Authority, by its duly authorized representatives (who shall not be 

an employer or in the employ of any employer affected by this 

Code), shall have access to any and all statistics, data, and information that may be furnished in accordance with the pro-vis.ions of 

this Code. 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority may cause to be formulated an accounting 

system and methods of cost finding and/or estimating capable of use 

by all employers of the Subdivision. After such system and methods have been formulated, full details concerning them shall be 

made available to all en1ployers. Thereafter all employers shall 

determine and/or estimate costs in accordance with the principles 

of such methods. 

ARTICLE VII-SELLING BELOW REASON ABLE CosT 

SECTION 1. When the Code Authority determines that an emergency exists in this Subdivision and that the cause thereof is destructive price-cutting such as to render ineffective or seriously 

endanger the maintenance of the provisions of this Supplemental 

Code, the Code Authority may cause to be determined the lowest 

reasonable cost of the products of this Subdivision, such determination to be subject to such notice and hearing as the Administrator 

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 employer of 

the Subdivision to sell or offer to sell any products of the Subdivision for which the lowest reasonable cost has been determined at 

such prices or upon such terms or conditions of sale that the buyer 

will pay less therefor than the lowest reasonable cost of such product. 

When it appears that conditions have changed, the Code Authority, upon its own initiative or upon the request of any interested 

party, shall cause the determination to be reviewed. 

SECTION 2. The foregoing Section 1 shall not apply to dropped 

lines which may be disposed of by any employer at any price and 

on any terms or conditions, but only if such employer, not less than 

two weeks before such proposed disposal, has filed with Code Au-
10 

thority a statement in writing setting forth the facts of, and reasons 

for, such proposed disposal and the price and terms and conditions of 

sale, and Code Authority has not, ( with the approval of the Administrator), before the termination of such two week period, in writing, 

disapproved the proposed disposal. Notice of such disposal, if not 

disapproved, shall be sent immediately to all employers manufacturing produc;ts of equivalent design, character, quality or specifications, 

who may sell such products at prices and on terms and conditions as 

favorable as those stipulated in the proposed disposal, when meeting 

the competition of such proposed disposal. 

SECTION 3. The foregoing Section 1 shall not apply to a sale made 

in order to moot competition on products manufactured outside the 

United States. For such disposal, any employer may sell, at prices 

and on terms and conditions as favorable as those of the competing 

foreign product, but only if he has first reported to the Code Authority his intention so to sell, and the facts as to the competition 

which justifies such action. 

ARTICLE VIII-PRICE LISTS 

(a) If and when Code Authority determines that in any group 

of the Subdivision it has been the generally recognized practice to 

sell a specified product on the basis of net price lists, or price lists 

with discount sheets, and terms of sale and payment, each employer 

engaged in the manufacture of such product shall, within ten (10) 

days after notice of such determination, file with Code Authority a 

net price list, or a price list with discount sheet, as the case may be, 

individually prepared by him, showin~ his current prices, or prices 

and discounts, and terms of sale and payment for such specified 

product, and Code Authority shall immediately publish and send 

copies thereof to all known employers who are cooperating under this 

Supplemental Code as described in Article V (e) and engaged in the 

manufacture of such specified products. 

Revised price lists and/ or discount sheets and/ or terms of sale 

and payment may be filed from time to time thereafter with the Code 

Authority by any such employer, to become operative upon the date 

specified therein, but such revised price lists and/ or discount sheets 

and/ or terms of sale and payment shall be filed with the Code 

Authority ten (10) days in advance of the operative date. Copies 

thereof, with notice of the operative date specified, shall be immediately published and sent to all employers cooperating under this 

Supplemental Code as described in Article V ( e), any of whom may 

file, if he so desires, revisions of his price lists and/or discount sheets 

and/ or terms of sale and payment, which shall become effective upon 

the date when the revised price list and/or discount sheets and/or 

terms of sale and payment first filed shall go into effect. Each employer shall prepare and furnish the Code Authority for distribution with such number of copies of his price lists and/or discount 

sheets and terms of sale and payment as Code Authority may 

prescribe.1 

(b) If and when Code Authority shall determine that in any 

group of the Subdivision not now selling its product on the basis 

1 See paragraph 2 (1) of order approving this Code. 
11 

of price lists, with or without discount sheets, with terms o:f sale and 

payment, the distribution or marketing conditions in the group are 

the same as, or similar to, the distribution or marketing conditions 

in a group where the use o:f price lists, with or without discount 

sheets and terms o:f sale and payment is well recognized, and that 

a system o:f selling on net price lists or price lists and discount sheets 

with terms o:f sale and payment :for such specified product should 

be put into effect in such group, then each employer in such group 

shall within twenty (20) days after notice o:f such determination, 

file with Code Authority net pri~ lists or price lists and discount 

sheets, with terms o:f sale and payment, showing his prices and discounts and terms o:f sale and payment, and such price lists and/ or 

discount sheets and/or terms of sale and payment may be thereafter 

revised in the manner hereinbef ore provided ; and such methods o:f 

pricing and revisions thereof shall be " published and sent " as described in Article VIII (a) ; provided that Code Authority shall 

make no determination to place any product of the Subdivision (not 

now on a price list basis) on a price list basis-, as provided in this 

Section unless affirmative consent to such determination is given by 

a 663⁄4 % vote o:f employers who are at that time cooperating under 

this Supplemental Code as described in Article V ( e), and are 

engaged in manufacturing such product. The eligibility requirements, method, and effect o:f such voting shall be the san1e as is provided by Article V. 

( c) For the purpose of gathering statistical data :for the determination or revis10n of a lowest reasonable cost under Article VII, the 

Code Authority shall have power, on its own initiative, or on the 

request of any employer, to investigate, to the extent permitted by 

the Act, any price or the terms o:f sale and payment :for any product 

shown in any price list and/or discount sheet filed with the Code 

Authority by any employer; and, :for the purpose o:f the investigation thereof, shall appoint competent representatives who shall not 

be an employer or in the employ of any employer affected by the 

Code; and also to require, to the extent permitted by the Act, such 

employer to :furnish, under restrictions as provided in the two paragraphs of Section (:f), Article VI of the Code, such in:formation 

concerning the cost o:f manu:facturing and selling such product as 

the Code Authority shall deem necessary or proper :for such purpose. 

(d) No employer shall sell directly or indirectly by any means 

whatsoever, any product o:f the Subdivision covered by provisions 

o:f this Article VIII at a price or at discounts or on terms of, sale 

and payment, different :from those provided in his own current net 

price lists, or price lists and discount sh€ets, and terms of sale and 

payment; except as provided in Article VII, Sections 2 and 3. 

( e) No employer shall evade any provision of this Code by selling 

to or through any dealer, jobber, distributor or other selling agency 

which shall :fail to agree to resell in accordance with the provisions of 

Articles VII, VIII and IX o:f this Supplemental Code. 2 

ARTICLE IX-UNFAIR ThADE PRACTICES 

Each o:f the :following acts and practices is deemed to be inimical 

to the best inrerests o:f the Subdivision, and o:f the public, and each is, 

2 See paragraph 2 (2) of order approving this Code. 
12 

there:fore, hereby declared to be, and to constitute, an unfair method 

of competition, and is hereby prohibited, viz: 

1. The secret offering or making by any employer o:f 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 any employer secretly offer or extend to any customer 

any special service or privilege not extended to all customers of the 

same class, for the purpose of influencing a sale. 

2. The giving by any employer or permitting to be given, or 

_ directly offering 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 employer, principal, or party. 

This provision shall not be construed to prohibit free and general 

distribution of articles commonly used :for advertising except so far 

as such articles are actually used for commercial bribery as hereinabove defined. 

3. The publishing of advertising (whether printed, radio, display 

or of any other nature), which is misleading or inaccurate in any 

material particular, nor shall any employer in any way misrepresent 

any goods (including but without limitation its use, trade-mark, 

gTade, 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. 

4. The defamation of competitors, by falsely imputing_ to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other misrepresentations with the tendency 

and capacity to mislead and deceive purchasers or prospective 

purchasers. 

5. Any discrimination between purchasers, by the sale of any articles having a published price and discounts, at any price and discounts other than the seller's published price and discounts, by 

means of direct or indirect price concessions, or by means of any 

privilege not extended to purchasers of the same class generally. 8 

6. The sellin~ to, or through any broker, commission account or 

sales agency, who or which is in :fact an agent :for an organization 

of industrial consumers, with the result that any industrial consumer secures a discqunt, allowance or price other than the discount, allowance or price provided for purchasers of the same class 

in the employer's own current net price lists or price lists with 

discount sheets. 4 

7. The taking in trade or accepting in trade any second-hand or 

old equipment 1n part payment for new, provided, however, that this 

provision shall not be construed to :r:rohibit in any way the return 

within six months o:f the date of shipment, to the Vendor and the 

allowance of any fair adjustment thereon by the Vendor of any 

product which shall not meet the purposes for which it was sold. 

Any employer may, however, assist in finding a bona fide buyer for 

said equipment but shall in no case take any financial interest in it.' 

8. The indulging in destructive price cutting. 

8 See paragraph 2 (3) of order approving this Code. • See paragraph 2 ( 4) of order approving this Code. 
13 

ARTICLE X-S.A.LES FOR EXPORT 

The provisions of this Supplemental Code concerning pricing and 

marketing shall not apply to direct export sales of any product. A 

similar exemption may be granted by the Code Authority as to 

sales of any product destined ultimately for export. The term 

"export" shall include all shipments to all places without the several states of the United States and the District of Columbia; provided, however, that no shipment to any territory or possession of 

the United States shall be considered an export when any employer 

is engaged in the Subdivision in such territory or possession. 

ARTICLE XI-MODIFICATIONS 

(a) As provided by Section 10 (b) of the Act, the President may 

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

rule or regulation issued under Titl-e I of the Act. 

(b) Any amendments, additions, revisions, or supplements of this 

Supplemental Code, proposed by Code Authority, and authorized 

by the affirmative vote of 66 2/2% of the employers shall be in :full 

force and effect upon approval by the President. The eligibility 

requirements, method and effect of such voting shall be the same as 

provided by Article V hereof. 

ARTICLE XII- W ITHDRA w AL 

Upon thirty days notice to the Basic Code Authority and to the 

Administrator, this Subdivision ma:t, upon the concurring affirmative 

vote of employers within the said .::,ubdivision entitled to cast twothirds or more of all the votes that might be cast by all employers 

within the Subdivision entitled to vote thereon, withdraw :from the 

jurisdiction of the Basic Code Authority. The eligibility of voters 

and the method and effect of such voting shall be in accordance 

with the provisions o:f Article V hereof. After and in the event such 

withdrawal is accomplished this Supplemental Code, together with 

the provisions of the Code, shall become and be the sole code governing this Subdivision, and the Code Authority shall for this Subdivision, become and be the sole Code Authority and shall perform 

all the functions with respect thereto. 

ARTICLE XIII-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is not 

designed to promote monopoly, and shall not be so construed or 

applied as to oppress or eliminate small enterprise or discriminate 

against them, and is designed to effectuate the policy of the Act. 

ARTICLE XIV-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

persons engaged in the Subdivision on the eleventh day after its 

approval. 

Approved Code No. 347-Supplement No. 38. 

Registry No. 1399-42. 

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UNIVERSITY OF FLORIDA 

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