V 

Approved Code No. 347-Supplement No. 17 Registry No. 1399-43 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

ROCK AND ORE CRUSHER 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 11, 1934 

WE DO OUR PART,' 

p I O ~ ----

u .. OEP09!TO~Y l-__....----·-UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

r I 

I 

I 

I 

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

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

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMM~RCE 

Atlantn., Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhquse. 

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. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 2'15 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San F'rancisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 347-Supplement No. 17 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

ROCK AND ORE CRUSHER INDUSTRY 

As Approved on June 11, 1934 

ORDER 

SuPPLEMENTARY ConE OF FAIR COMPETITION FOR THE RocK AND ORE 

CRUSHER 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 0£ Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Rock and Ore Crusher 

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. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference 

said annexed report and do find 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 ( or such agency as may be designated in the Supplemental Code) and the effective date of price lists, as originally filed 

and/or revised price lists or revised terms and conditions of sale, be 

and they hereby are stayed pending my further order. 

2. That the provisions of the second paragraph of Article VIII, 

Section ( d) be and they hereby are stayed pending the submission 

of satisfactory evidence concerning distribution of the products of 

the Subdivision to the Administrator. 

66500 °-657-100-34 (1) 
2 

3. That the pronsions of Article IX, Sections 5 to 10 inclusive; 

be and they hereby are stayed for a period of fifteen (15) days; 

then to become effective unle s I by my further order otherwise 

direct· within "hich time cau e may be sho\\ll if any there be why 

the above provisions hould not become effective · and that the Temporary Code Authori y send notice of the stay of these provisions 

and of the opportunity to show cause "hy they should not become 

effecti,e to all kno"n employers of the Subdivision. 

H-coH . JoHX o~ 

Administrator for I ndustrial, R eco-very . 

.A..ppro,al recommende<l : 

.A.. R. Gwxcr, 

Division Admini-Strator. 

\\ ~SHI:XGTOX J D.C. 

J une 11, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This report relates to the Supplemental Code of Fair Competition for the Rock and Ore Crusher Subdivision o:f :Machinery 

and Allied Products Industry as proposed by the Rock and Or~ 

Crusher Association. 

A public hearing was held in Washington, D.C., on December 4, 

1933 and reconvened on December 21, 1933. The public hearingg 

were conducted in accordance with the provisions of Title I o:f the 

National Industrial Recovery Act and all persons were given :full 

opportunity to be heard. 

GENERAL STATEME~T 

The Rock and Ore Crusher Subdivision, bejng truly representa• 

tive o:f the manufacturers o:f the products defim~d in Article II o-f 

the Supplemental Code, has elected to :formulate and submit a 

Supplemental Code o:f Fair Competition as provided in the second 

paragraph o:f Article I in the Code o:f Fair Competition for the 

Machinery and Allied Products Industry, approved by you on the 

seventeenth day of :March, 1934. 

The Subdivision includes the design, manufacture, contracting :for 

or subletting the manufacturing for the sale of rock, gravel and 

ore crushers for coarse and secondary reduction and includes spare, 

repair and replacement parts thereof and includes screening and 

washing machinery, the sale (but not the manufacture) of conveying 

machinery, and any other accessory equipment and/ or materials 

when old with and incidental to cru hing equipment and includes 

all those so engaged· provided that the Subdivision hall not in• 

elude crushers and associated machinery when mounted in portable 

units-also excluding hammer-mills. 

Stati tical material bearing on this Subdivision was obtained from 

the code application submitted by the Rock and Ore Cru her As O· 

ciation and from ational Reco-,ery Administration que tionnaires 

sent to members of the ubdivision. The above mentioned a ociation clajms to repre ent 90 per cent of the entire ubdivi ion 

mea ured by dollar volume of busine s. 

Annual ales in 1932 according to the a ociation, declined to 

nearly one-fourth the 1929 level. In 1929 ales were reported at 

$6 344,000 and in 1932, 1 4 5 000. Sale for the first half of 1933 

were $557 000, or nearly one-half the 1932 level con equentl it is 

quite probable that sale in 1933 will not fall below the 1932 le,el. 

E timates howino- employment for the entire Subdivision ubmitted by the Trade A ociation, indicate that employment declined 

from 766 in 1930 to 313 in 1933, or 59.1 per cent. 

o figure are available on the full-time hour per week :for the 

entire ubdiYi ion. According to a 50 per cent sample compiled 

(3) 
4 

from National Recovery Administration questionnaires, the Subdivision worked in June, 1929 two shifts of 8 to 11 hours per day, 

and in June and October, 1933, one shift of 8 to 9 hours and 7 to 9 

hours per day, respectively, with part-time of less than six hours per 

day. 

Average hours per week were reported to be 55.2 in June, 1929 ; 

33.3 in June, 1933; and 32.5 in October, 1933. In October, 1933 the 

average hours were 41.1 per cent less than the June, 1929 average. 

The effect of the 40-hour provision with production at more 

normal levels may be estimated on a basis of the 1930-1931 average 

of total man-hours per week divided by the number of hours prescribed by the code. After 1929, man-hours declined steadily from 

38,470 to a minimum of 13,330 in 1932, or 65.4 per cent. Since then 

man-hours have increased to 19,430, or 45.8 per cent. 

If it is assumed that the 25,275 average man-hours for 1930-1931 

are representative of the volume of production for those years, and 

a reasonable measure of man-hour requirements in a more normal 

period, the adoption of the 40-houi- week would require a force of 

approximately 630 employees, or 90 per cent of the 1929 working 

level. 

However, owing to the impossibility of all employees of the Subdivision working the maximum 40 hours, the average work-week 

will be shorter, say 36 assumed effective hours, and the employment 

correspondingly greater, viz: 700 workers will be required to produce 

the 1930-1931 volume. 

The minimum wage provisions proposed for the Subdivisions 

which are operating under the Code of the Machinery and Allied 

Products Industry are based on a flat minimum hourly rate of 32 

cents per hour for the South and the following city population differentials for all other section of the United States: · 

Over 50,000 population, 40 cents per hour. 

Over 10,000 to 50,000 population, 38 cents per hour. 

10,000 population and under, 36 cents per hour. 

In addition to the minimum wage rates shown above, the Code 

provides that women engaged in substantially the same work as 

men shall receive the same rate of pay as such men employees; that 

the minimum wage for women employees engaged in plant operations shall be not less than 87.5 per cent of the proper rate for the 

locality in which employed as specified; and that the minimum in 

the South shall be not less than 32 cents per hour. 

Estimated mmiber of factory it}Orlcers r eceiving less than des{,gnatecl hourly 

rates 

Proposed minimum hourly rates 

40 cents (other U.S.)_ .• _____________ ............ ___ .... ______ .. ____ ........ . 38 cents (other U.S.)_ .. _______ ... ______ .. __ .. __ .. ____ . __ ............ __ ..... . 36 cents (other U.S.)_ .. ______________ . __ .. __ .. __ ........ __ ... ___________ .•.. 82 cents (South) .... _. ___________ . ____ .... _. __ . ______ ... ___ ____________ ..... _ 

Distribution of factory workers receiving less 

than the minimum, re- gardless of location 

Approximate Approximate 

percent number 

28.9 

26.4 

24.0 

10.7 

77 

70 

64 

29 
5 

Distributions of the number of factorv workers receiving- classified 

rates in the specified areas are not available. Consequently, it is only 

possible to estimate the approximate number of factory workers who 

will receive the benefit of the proposed minimum hourly rates, regardless of location, on the basis of the number of factory workers 

receiving less than the designated hourly rates as of June 15, 1933. 

Based on the distribution as of June 15, 1933 and on the specified 

percentages of the number of factory workers receiving less than 

the designated rates shown in the above table, the adoption of the 

proposed minimum rates will probably cause an increase in factory 

payrolls. The estimated increase as of June 15, 1933, regardless of 

location of the workers, will probably, under the most favorable conditions, not exceed five per cent assuming only upward adjustment 

in the brackets below the 40-cent minimum and no change in manhour requirements. 

RESUME OF SUPPLEMENTAL 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 National Industrial Recovery Code of the Machinery 

a.nd Allied Products Industry, as approved by you, and as from time 

to time amended. 

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

IX of the National Industrial Recovery Code of the Machinery and 

Allied Products Industry, in accordance witl1 the conditions of this 

Article governing their adoption. 

Article V provides for the establishment of a 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 of the Subdivision shall be 

sold or exchanged below a reasonable cost when the Code Authority 

determines that an emergency exists. 

Article VIII provides for methods of setting up, revising and fiEng 

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

Article IX sets forth trade practices for the Subdivision. 

Article X states that no provision of this Supplemental Code relating to pricing and marketing shall apply to export sales as defined 

by the term " Export " in this Article. 

Article XI provides that this Supplemental Code and all the provisions thereof 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, approyal, license, 

rule or regulation issued under said Act. Provision is also made 

that modihcations may be submitted by the Code Authority to the 

Administrator for approval. 

Article XII. No provision of this Supplemental Code shall be so 

applied as to permit monopolies, or monopolistic practices, or to 

eliminate, oppress, or discriminate against small enterprises. 

Article XIII states the effective date of this Supplemental Code. 
6 

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 action among the 

trade groups by inducing and maintaining united action Qf 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 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 Subdivision normally employs not more than 50,000 

employees; and is not classified by me as a major 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 industrial association truly 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 permit 

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 engaged 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 Article VIII, Section ( e) are stayed, as stated 

in the order. · 

Respectfully, 

JUNE 11, 1934. 

HUGH s. JOHNSON' 

Administrator. 
SUPPLEMENTARY CODE OF F'AIR COMPETITION FOR 

THE ROCK AND ORE CRUSHER INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUars 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 Rock and Ore Crusher 

Subdivision of the Machinery and Allied Products Industry, and 

together with the Code o:f Fair Competition for the Machinery and 

Allied Products Industry to which it is a Supplement, shall be 

the standard of :fair competition for this Subdivision, and shall be 

binding on each employer therein. 

ARTICLE II-DEFINITION 

"Applicant" means the Rock and Ore Crusher Association, a 

trade organization, all members o:f which are engaged in the manufacture :for sale o:f the products o:f the Rock and Ore Crusher Subdivision o:f the Machinery and Allied Products Industry, which 

organization is truly representative o:f this Subdivision. 

"Industry" means the Machinery and Allied Products Industry, 

as defined in its Code of Fair Competition as approved by the President, March 17, 1934, and as such definition may from time to time 

be amended. 

" Subdivision" means the Rock and Ore Crusher Subdivision o:f 

the Machinery and Allied Products Industry as defined and set forth 

in Paragraph (Z7) of Article II of the Code of Fair Competition 

for the Machinery and Allied Products Industry as follows: 

"Rock and Ore Crusher Subdivision means the design, manufacture, contracting for --ur subletting the manufacturing 'for the sale 

of rock, gravel, and ore crushers for coarse and secondary reduction 

and includes spare, repair and replacement parts thereof, and includes screening and washing machinery, the sale (but not the manufacture) of conveying machinery, ancl any other accessory equipment and/or materials when sold with and incidental to crushing 

equipment, and includes all those so engaged; provided that the 

Subdivision shall not include crushers and associated machinery 

when mounted in portable units-also excluding hammermills." 

"Code" means the Code of Fair Competjtion for the Machinery 

and Allied Products Industry, as approved by the President, and 

as from time to time amended. 

"P erson " means a na t ura 1 person, a par t ners 1· 11p, a corporat10n, . 

an associati~n, a trust, a trustee, a trustee in bankruptcy, a receiver, 

or other entity. 

(7) 
8 

'Employer" means any person engaged in this Subdivision of 

the Industry, either on his own behalf or as an employer of labor. 

' Employee" 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 t~ President of the United States. 

" The Administrator " means the Administrator for Industrial 

Recovery. 

"Basic Code Authority" means the Code Authority for the 

Machinery and Allied Products Industry as constituted by the Code. 

"Code Authority " means the Code Authority constituted for thi:S 

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

"Group Code Authority" means the Code Authority for any 

group or classification of products within this Subdivision, constituted under the authority of Article V of this Supplemental Code. 

"' Publish " means to make available to the public. 

" Principles " means all essential characteristics. 

ARTICLE Ill-EMPLOYMENT PROVISIONS 

The following Articles of the Code, viz : Article III, " 1iV orking 

H ours " · Article IV " W acres " · and Article V " General Labor 

Provisions", ' ' e ' ' are hereby made a part of this Supplemental Code, 

with the same 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; Article VIII, "Modifications 

and Termination "; and Article IX, " Withdrawal "; are hereby 

made a part of this Suplemental Code with the same effect as if they 

were written into this Supplemental Code. 

ARTICLE V-ORGd..l.""'lZATION AND ADMDHSTRATION 

To admir{ister and supervise, and facilitate tbe performance of the 

provisions of this Supplemental Code, there is hereby established a 

"Code Authority". 

(a) The Code Authority for this Subdivision shall consist of 

(1) The Executive Committee of the ROCK AND ORE CRUSHER Association, consisting of not less than four and not more than 

seven members. 

(2) One additional member to be elected in any fair manner, with 

the approval of the Administration, by employers in this Subdivision 

not members of the Applicant, who are cooperating in this Supplemental Code, as described in Section ( e) hereof, if so desired by such 

non-members. 

(3) The Administrator may, at his discretion appoint one additional member ( without vote and without expense to the Subdivision). 
9 

(b) Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shall (1) impose no inequitable restrictions on membership, and (2) 

submit to the Administrator true copies of its articles of association, 

by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, 

and activities as the Administrator may deem necessary to effectuate 

the J?Urposes of the Act. 

( c) 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 in the method of selection of the Code Authority, or any Group-Code Authority. 

The Code Authority may adopt rules and regulations for its procedure and employ such personnel as it may deem necessary. 

( d) Any employer in this Subdivision shall be eligible for membership in the Rock and Ore Crusher Association. 

( e) Any employer in this Subdivision shall be entitled to vote, 

subject to the provisions of Section (a) hereof, at the election of, 

and share in the benefits of the activities of the Code Authority and 

may participate in any endeavors of the Code Authority, in the 

preparation of any revisions of, or additions or supplements to, 

this Supplemental Code, by paying his proper pro rata share of 

the reasonable cost of creating and administering it, as determined. 

by the Code Authority, such vote of employers in this Subdivision 

to be determined subJect to the provisions of Section (a) hereof, 

by a vote of employers who are at that time engaged in manufacturing such producti and are at that time cooperating in this Code, 

as above described 1n this Section (e) of this Article V, cast concurrently in each of the two. following methods: · (1) By one vote of 

each employer. (2) By vote of employers weighted on the basis 

of one vote for each $25,000 of sales booked of such product of said 

employers who are at that time engaged in manufacturing such 

products, made in the preceding five calendar years, as reported to 

the Code Authority of this Subdivision. Each employer shall be 

entitled to at .least one such vote. 

Except as otherwise provided in this Code any action taken at 

any meeting of employers shall be by a majority vote cast and 

computed in each of the two methods hereinabove provided. 

(f) Employers in this Subdivision ·having a common interest and 

common problems, may be grouped by Code Authority for administrative purposes into various Group Subdivisions, or product 

classifications. 

In each Group Subdivision, or product classification, there may 

be a_ Group-Code Authority approved, or appointed, by Code Authority . 

. (g) If for!llal complaint is made to Code Authority, that prov1s10ns of this Supplemental Code have been violated by any employer, the Code Authority or proper Group-Code Authority may 

cause such investigation or audit to be made, to the extent per-
10 

mitted by the Act as may be deemed necessary. If such investigation is made by Group-Code Authority, it shall report the results 

of such investigation or audit to Code Authority for action. 

Unless Basic Code Authority shall take jurisdiction, the Code 

Authority shall have the right to investigate to the extent permitted by the Act, and ana_lyze any transaction coming under the 

scope of this Supplemental Code, on which any unfair competition 

is alleged, to show evidence of any violation of this Supplemental 

Code, to report any such alleged v10lation to the proper authorities 

for action. 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority shall 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 employers. Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such 

methods. 

ARTICLE VII-SELLING BELOW REASON ABLE COST 

(a) When the Code Authority has reason to believe that an emergency exists as to any product or products of the Subdivision, and 

that the cause thereof 1s destructive price-cutting such as to render 

ineffective or seriously endanger the purposes or the maintenance 

of the provision of this Supplemental Code, the Code Authority may 

cause an investigation of costs and pricing to be made by an impartial agency in order to determine the existence of the emergency and 

the Code Authority may cause to be determined the lowest reasonable 

cost of the product or 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 emergency, 

no employer of the Subdivision shall 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 products. . 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. 

ARTICLE VIII-PRICE LISTS 

(a) If and when the Code Authority of this Subdivision determines that in any branch or 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 fixed 

terms of sale and payment, each employer shall, within ten (10) 

days after notice of uch determination, file with the Code Authority a net price list, or a price list and discount sheet, as the case 

may be, individually prepared by him, showing his current prices, 

or prices and discounts, and terms of sale and payment, for such 

specified product, and the Code Authority shall immediately pub-
11 

lish and send copies thereof to all known employers who are cooperating in this Supplemental Code as described in Section ( e) of 

Article V hereof. 

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

and payment for such product may be filed from time to time thereafter with the Code Authority by any employer, 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 effective date. Copies of such revised price lists and/or discount 

sheets and/or terms of sale and payment, for such product, with 

notice of the effective date specified, shall be immediately published 

and sent to all known employers who are cooperating in this Supplemental Code as described in Section ( e) of Article V hereof, any of 

whom may file, if he so desires, to become effective upon the date 

when the revised price list/or discount sheet and/ or terms of sale 

and payment first filed shall go into effect, revisions of his price lists 

and/ or discount sheets and/or terms of sale and payment establishing prices or prices and discounts not lower or terms of sale and 

payment not more favorable than those established in the revised 

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

first filed. Nothing in the foregoing shall constitute a limitation 

upon the right of any employer to file revised lists fixing his own 

prices, discounts and/or terms of sale and payment, which prices 

and discounts may be either more or less favorable than those contained in any other price list, to be effective as provided in the first 

sentence of this paragraph. 

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

branch or group of the Subdivision 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 group are the same as, or similar to, the distribution or marketing conditions in a branch or group of the Subdivision 

where the use of price lists, with or without discount sheets, 

and/or fixed terms of sale and payment, is well recognized, and that 

a system of selling on net price lists or price lists and discount 

sheets with fixed tenns of sale and payment for such product should 

be put into effect in such branch or group, then each employer of 

such branch or group shall within ten (10) days after notice of 

such determination, file with the Code Authority net price lists or 

price lists and discount sheets, containing fixed terms of sale and 

payment, showing his current prices and discounts and terms of 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 

hereinabove provided; provided, however, that the 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 paragraph (b) of Article VIII, unless the employers who are at 

tliat time engaged in manufacturing such product and are at that 

time cooperating, have given their affirmative consent to such determination. The eligibility requirements, method and effect of such 

voting shall be the same as provided in section ( e) of Article V. 

Each employer shall prepare and shall furnish the Code Authority 

for distribution with such number of copies of his price lists and/or 
12 

discount sheets and/or terms 0£ sale and payment as Code Authority 

may ,prescribe. 

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

whatsoever, any product of the Subdivision covered by provisions of 

this Article VIII at a price or at discounts, or on te.rms of sale and 

payment, different from those provided in his own current net price 

lists, or price lists and discount sheets, provided that nothing in the 

above shall prevent an employer from adding to his own price and/ or 

price list and discount sheets by increasing his job price to include 

unusual selling, engineering, servicing, financing, financial risks, or 

other similar special charges ( except as provided in Article VII 

above) provided, however, that in the event of an employer quoting 

a higher .price than the price published in his own price list and/ or 

price list and discount sheets, to take care of unusual selling, engineering, servicing, financing, financial risks, or other similar special 

charges, he shall not subsequently quote a lower price on said prospective sale than that price first quoted, except in accordance with 

revised price lists duly filed or unless he simultaneously eliminates 

part or all of the unusual engineering, servicing, financing, financial 

risks or other similar special charges, for which a corresponding 

reduction only may be made. 

(d) No employer shall sell to, or through any broker, jobber, 

commission account or sales agency ( this is known in the trade as 

"pooled buying"), who or which is in fact an agent for an organization of industrial consumers, with the result that any industrial 

consumer secures a discount, allowance or price other than the discount, allowance or price provided for in the employer's own current 

net price lists or price lists with discount sheets. 

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 of this Supplemental Code. 

( e) Wherever by the provisions of this Article VIII an employer is or may be required to or permitted to file terms of sale 

and payment, such terms shall mean usual or standard terms, and 

to cover any special and/ or unusual terms definite formulae for 

determining such special and/ or unusual terms shall be filed. 

(f) If and when Code Authority shall determine that it is undesirable to continue the filing of net price lists and/ or price lists 

with discount sheets and/or fixed terms of sale and payment on 

any product in respect of which such filing has heretofore been required, such filing shall cease and the provisions of this Article 

shall not apply to such product unless and until Code Authority 

shall again determine that such filing be made. 

ARTICLE IX-TRADE PRACTICES 

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

the best interests of this Subdivision, and the public, and each is, 

therefore, hereby declared to be, and to constitute, an unfair method 

of competition, viz:-

1. The secret offering or making, to any customer, agent, fiduciary 

or representative of customer, of any payment or allowance 0£ a 
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rebate, refund, commission, credit, credit subsidy, unearned discount or excess allowance, whether in the form of money or otherwise, or any special service or privilege, for the purpose of influencing a sale. No employee of the Subdivision shall give, permit 

to be given, or offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of 

such employee or the principal of such agent without the knowledge 

of such employer or principal, provided, that no provision of this 

Code shall 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 de.fined. 

2. Any discrimination between purchasers, by the sale of any article having a published price, at any price other than the seller's 

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

by means of any privilege not extended to purchasers generally. 

3. Untruthfully advertising, representing, or marking any product, with intent to deceive or mislead. 

4. The publishing or circularizing of threat of any suit for infringement or patent or trade mark, or of any other legal proceedings, not in good faith, which would tend to harass a competitor 

or intimidate his customers. 

5. The taking in trade or accepting in trade any secondhand or 

old equipment in part payment for new, provided, however, that 

this provision shall not be construed to prohibit in any way the 

return within six months of the date of shipment to the Vendor 

and the allowance o:f 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. 

6. So long as the maker of any product of this Subdivision bearing the maker's name or trade mark, which has required special 

designing, research or development expense ( or his successor in 

business) continues to make and supply such spare, repair and replacement parts therefor, supplying repair parts for such product 

o:f this Subdivision unless (a) the name of the maker o:f such copied 

non-genuine repair parts shall be plainly marked on each part ( or 

if tlus is impracticable on the package or tag) so that the ultimate 

user is clearly informed by marking on such parts, packages, tags 

and in catalogues, price lists, quoted prices, advertisements or advertising literature of the manufacturers o:f such copied non-genuine 

parts that said parts were not made by the original maker of the 

products of the employer o:f this Subdivision. 

7. The furnishing to any purchaser, and/or his agent, directly 

or indirectly of detailed shop drawings of the products of this Subdivision without filing a statement of such proposed transaction •with 

the Code Authority which may approve or with the approval of 

the Administrator disapprove the transaction within ten (10) days 

by written notice to the employer. 

8. Disseminating false or misleading information relative to competitor's products, selling prices, reputation, credit or financial standing, ability to perform work, or labor conditions. 
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9. Inducing or attempting to induce a breach or abandonment of 

contract covering the purchase or sale of the products of this Subdivision; provided, however, that nothing in this Section shall be 

construed to prohibit the attempt on the part of the owner of or 

licensee under any patent to induce a purchaser or future purchaser 

of any product which shall infringe said patent, to avoid such 

purchase. 

10. It shall be an unfair trade practice for any employer to engage in destructive price cutting. 

ARTICLE X-SALES FOR EXPORT 

The provisions of this Supplemental Code concerning pricing and 

marketing (Articles VII, VIII and IX) shall not apply to direct 

export sales of any product. A similar exemption may be granted 

by the Code Authority of this Subdivision as to sales of any product 

destined ultimately £or export. Unless otherwise determined by 

the Code Authority the term "export" shall include all shipments 

to all places without tp.e 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 industry 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 Title I of the Act. 

(b) Study of the trade practices of this Subdivision will be con- tinued by Code Authority, with the intention of submitting, from 

time to time, after its effective date, amendments or additions to, or 

revisions of, or supplements to, this Supplemental Code. 

Any such amendments, additions, revisions, or supplements, proposed by Code Authority, and approved by a vote of the employer;; 

shall be in full force and effect upon approval by the President. 

The elegibility requirement~ method, and effect of such voting shall 

be the same as provided in t3ectiov ( e) of Article V. · 

ARTICLE XII-11oxoroLrns 

The Supplemental Code presented by Applicant is not designed to 

promote monopoly, and shall not be so construed or applied as to 

oppress or eliminate small enterprises or discriminate against them, and is designed to effectuate the Policy of the Act. 

ARTICLE XIII- EFFECTIVE DATE 

This Supplemental Code shall become effective and binding qn 

all persons engaged in this Subdivision on the eleventh day after 

its approval by the President. 

Approved Code No. 347-Supplement No. 17. Registry No. 1399-43. 

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