Approved Code No. 347-Supplement No. 30 Registry No. 1399-69 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

MULTIPLE V-BELT DRIVE 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

f I 'I 

U . ..;;,. 

AS APPROVED ON JULY 13, 1934 

oWE DO OUR PART 

I 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintenc!cnt of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
.. 

This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Buren u of 

Foreign and .Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 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 Comme1·ce 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, l\Io.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway . Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, 1\1inn. : 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. : 215 New Post Office Building. 

St. Louis. 1\fo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 347-Supplement No. 30 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

MULTIPLE V-BELT DRIVE INDUSTRY 

As Approved on July 13, 1934 

ORDER 

SUPPLEMENTARY Co DE OF FAIR COMPETITION FOR THE :MULTIPLE 

V-BELT DRIVE 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 o:f Fair Competition for the Multiple V-Belt Drive 

Subdivision of ~Iachinery and Allied Products Industry, and hearings having been duly held thereon and the annexed report on said 

Supplemental Code containing findings with respBct thereto, having 

been made and directed to the President: 

NOW, THEREFORE, on behalf of the Pre ident 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 aid Act; and do hereby order 

that said Supplemental Code of Fair Competition be and it is hereby 

approved subject to the following conditions: 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 or revised terms and conditions of sale, be and they are 

hereby stayed pending my further order. · 

HUGH S. JOHNSON, 

Ad1ninisfrator for bul-u~t?·ial R ecovery. 

Approval recommended: 

BARTON "\iV. M RRAY. 

Div ision Adm,inistrator. 

vVAsHINGToN, D.c. 

July 13, 1934. 

73628°--828- Gl--:34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

Tlie White House. 

Srn: This is a report on the Suppleinental Code of Fair Competition for the Multiple V-Belt Drive Subdivision of Machinery and 

Allied Products Industry, a public hearing on which was held in 

vVashington , D.C., on May 10, 1934. This public hearing was conducted in full accordance with the provisions of Title I of the National 

Industrial Recovery Act and all persons were given full opportunity 

to be heard. 

GENERAL STATEMENT 

The Multiple V-Belt Drive Subdivision, being truly representative 

of the manufacturers of the products defined in Article II of the 

Supplemental Code, has elected to formulate and submit a Supplen1ental Code of Fair Competition as provided in Article I in the 

Code of Fair Competition for the Machinery and Allied Products 

Industry, approved by you on ~/(arch 17, 1934. 

The Multiple V-Belt Drive Subdivision means the manufacture 

for sale of Multiple V-Belt Drives, and parts thereof, and includes 

all those e:r.iga.ged in such manu:factuTe for sale. This includes belt 

inanmfacturers when 1nerchandising complete drives or sheaves, but 

does not include the manufacturing of belts or rn.erchandising only 

of the belt element of the Drive. 

ECONOMIC EFFECT 

This Suhdivi ion has been very severely affected by the depression. Thi is evidenced by the steady decline in annual sales, the 

total volume having declined from $3:281,000 in 1929 to $1,045,000 in 

1932 or 68.2 p er cent and increased thereaf-te.r to $1,132,000 in 1933, 

or 8.3 percent. Total sales for 1933 were approximately 65 percent 

below the 1929 l:evel. 

In 1929 this Subdivision employed approximately 34u persons, including otiice employees. After 1929 employrnent declined to 251 

per ons in 1932, or 27.5 percent. The 1933 employment wa approximately 20 percent below the 1929 leY.el. 

No data are available on ave rag hours of labor or a verag wage 

rates for the Sub livi ion. The effect of the wage and hour provision of the Supplemental Code cannot, therefore, be determined. 

The wage provision for the Subdivi ion, which is operating under 

the Code of the Machinery and Allied Products In lustry, provide 

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

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

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

more than 50,000 population and their i.:.bmediate vicinity, which 

(2) 
3 

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

population 38 cents per hour; (3) in citie of 10 000 population or 

les and their immediate vicinity whi h citie ar not in the imrn.ediate vicinity of a city of more than 10,000 population, 36 cent per 

hour, except that employees engacrecl in plant operation in all localitie in the tates of Virginia orth Carolina, South Carolina, 

Georgia, Florida, Tennessee Alabama, ~1i i sippi, Arkan as, 

Loni iana, Texa-, and Oklahoma , shall be paid not less than 32 cent 

per hour. 

When female do sub tantially the am" work a n1.ale or replace 

mal the3 ·hall receive the same pay. Howev r, no femal emplo ee shall ba paid le s than 871/3 o/c of the proper rate for tha locality in which employed. 

Office boys and girl and apprentices hall be paid not less than 

80o/c of the minimum wage. 

Employee other than tho e engaged in plant operations hall receive not le s than $15.00 per week. 

Thi Supplemental Code provide that no per on under sixteen 

years of age shall be employed in this Subdi, ision. 

RES ME OF s PPLEUENTAL CODE 

Article I stat es the purpo e of the Supplemental Code. 

Article II accurately define specific terms applicable to the Sub_-

division a w::ed in this Supplemental Code. 

Article III provide for the adoption of the employment provisions of the Code of Fair Competition for the 1:a hinery and Allied 

Products Inclu tr a uppro-,ed by 3 ou on the seventeenth day of 

:March, 1934, and as from time to time amended. 

Article I, prm·ide for the adoption of Articles II, VI, '\ III, 

and IX of the Code of Fair Competition for the :Machinery and 

Allied Product Indu try in accor :lance with the conditions of this 

Article governing their adoption. 

Article '\ proYicle · for the establishment of the Code Authority 

and defines its 11ower ai cl dutie . Article \ I proYide~ for an a,ccounting y tern and methods of cost 

fin ling and/ or e timating. 

Article '\ II provide that no products shall be old or exchanged 

below a rea onable co ·t when the Code Authority determines that 

an emercren y exi ts. 

Article ViII provide for methods of setting up, revising, and 

filing price list and di counb heet and terms of ale an l payment. 

Article IX ·et · forth trade practice. for the Subdivision. 

Article X establishe that no provision of this Supplemental Code 

relatincr to pricing and marketing shall apply to direct export ales 

or to any product de tined ultimate! for export. 

Article XI. This Supplemental Code and all the provisions thereof 

are expre ly made subject to the right of the President in accordance with ub ection (b) of Section 10 of the Act, from time to 

time to cancel or rnodif3 any order, approval, license, rule or regulation i sued under c:aid Act. Provi ion i al 0 made that modification may be ubmitted by th Code Authority. 

Article XII proYide means for withdrawal of this Subdivision 

from the Ba ic Code and it continuance a an autonomou Code. 
4 

Article XIII establishes that no prov1s10n of this Supplemental 

Code shall be so applied as to permit monopolies and monopolistic 

practices or to eliminate, oppress, or discriminate against small enterprises. 

Article XIV states the effective date of this Supplemental 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 i 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 of labor 

ancl nianagement 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 

p ower, by reducing and relieving unem.ploy~nent, 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. 

(cl) The Supplemental Code js 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 

are stayed, as stated in the Order. 

Respectfully, 

WASHINGTON, D.C., 

July 13, 1934. 

HUGH s. JOHNSON, 

Adviinistrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE MULTIPLE V-BELT DRIVE INDUSTRY 

A DIVISIO OF THE l\IACHINERY AND ALLIED PROD CT INDUSTRY 

ARTI LE I-PURPO ES 

To effectuate the policy of Title I of the National Industrial Recovery Act, the f ollowing provisions are e tabli heel a a Supplemental Code for the JHultiple V-Belt Drive SubdiYision of the 1achinery and Allied Products Industry, and, together with the Code 

of Fair Competition for the Machinery and Allied Product Indu - try, shall be the standard of Fair Competition for thi SubdiYision, 

and shall be binding on each employer therein. 

ARTICLE II-DEFINITIOXS 

"Applicant" mean the l\1ultiple V-Belt Drive A sociation, a trade 

organization, all members of which are engaged in the ma~1ufacture 

and sale of the products of the Multiple V-Belt Drive Subdivi ion of 

the Machinery and Allied Products Industry. 

' Industry" means the 1\1achinery and Allied Products Industry, 

as defined in its Code of Fair Competition a approved by the President, and a such definition may from time to time be amended. 

Subdivision" mean the 1ultiI le V-Belt DriYe Subdivi ion of 

the Machinery and Allie l Products In lustry, defined as follows : 

"Multiple V-Belt D1°ive Subdiv·ision ' means the manufacture for 

sale of Multiple V-Belt Drive and parts thereof, and include all 

those engag cl in such manufacture for ale. This includes belt 

manufacturers when merchandising complete drives or sheaves, but 

does not include the manufacturing of belts or merchandising only 

of the belt element of the Drive. 

"Oode" mean the Code of Fair Competition for the 1\1achinery 

and Allied Products Inclu try, a approve i by the President March 

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

'P rson" mean a natural per on, a partnership, a corporation, 

an as ociation: a trust, a tru tee, a trustee in bankruptcy, a receiver 

or other entity. 

' E11iployer" means any person engaged in this Subdi, i ion of the 

Indu try either on hi own behalf or as an employer of labor. 

"Eniploye " means any one who i employed in this Subdivision 

by any uch employer. 

' The A.ct ' means Title I of the ational Industrial Recovery 

Act. 

" Th e President ' means the President of the nited States. 

"Administrator" means the Administrator for Indu trial Recovery. 

(5) 
6 

"Basic Code Authority" means the Code Authority :for the Machinery and Allied Products Industry as constituted by the Code. · Code Au.tlw'rity" means the Code Authority constituted for this 

Subdivision as provided by the Code and by this Supplemental 

Code. 

"Group Code Authority" means the Code Authority :for any 

group or product clas ification within this Subdivision, constituted 

under the Authority of Article V of this Supplemental Code. 

~ JI ethod of Pricing " means net price lists and tenns of sale and 

payment, or price lists with discount sheets and tenns of sale and 

payment. 

"Pitblisli " means to make available to all interested parties. 

ARTICLE III-EMPLOYMFNT PROVI SIONS 

The following Articles of the Code, viz : Article III, " \iV or king 

Hours" ; Article IV, "Wages"; and Article V, "General Labor 

Provision " are hereby n1ade a part of this Supplemental Code, 

with the same effect as if they were written into this Supplemental 

Code. 

ARTICLE IV-ADOPTION OF OTHER Pnov1 IONS OF CODE 

The following Articles of the Code, viz: Article II, " Definitions "; Article VI, "Adm.inistration ", 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, "11odi:fications and Termination", are hereby made a pa.rt of this Supplemental Code, with the samv effect as if they were written into this 

Supplemental Code. 

ARTICLE V - An:J\IINISTRATION 

During the period not to exceed sixty days following the effective 

date of this Supplemental Code, the code committee of the Applicant 

shall constitute .a temporary Code Authority. This corn.mittee shall 

con ist of not less than S1 and not more than 8 members, and the 

Administrator, in his discretion, may appoint one additional member 

( without vote and without expense to this Subdivision) . 

(a) To permit representation of employers who are not members 

of Applicant, the Applicant shall, within sixty days after this Supplemental Code becomes effective, set up a permanent Code Authority to succeed the temporary Code Authority to administer and supervise and to facilitate the enforcement of this Supplemental Code. 

Such permanent Code Authority shall be elected at a meeting call 0 d 

for thi purpose, to which all known employers in this Subdivision 

shall be invited by letter sent by registered mail, with the right to 

vote either in person or by proxy. This permanent Code Authority 

shall con i t of not less than 3 and not n10re t h.an 7 men1bers, and, in 

addition thereto, the representative of the Administrator as ref-erred to in tho paragraph above. Of the elective members of Permanent Code Authority, one member may be chosen by the employers (if any) who are not members of the Applicant, provided 
7 

such representation shall be desired by such employers. In the election of the remaining members of Pennanent Code Authorit3, each 

meimber of the 'A.ppli ant shall have one vote, and a majority vote of 

the m mbers of the Ap1 licant shall elect. I\1e111bers of the Permanent Code Au hority so ele ted shall hold office f r terms provided for in the Permanent Code Authority onstitution and ByLaws. 

Any employer in this Sub livi ion .·hall be entitled to vot 0 at the 

election of, and hare in the benefit of, the Code Authority, and 

participate in any endeavors of the Code Authority in the preparation of any revi ion of, or addition or upplement to, this Supple-

.mental Code, by paying his proper pro rata share of the> co t of 

acln1inistering it, as determined by the Code Authority. 

Asse sment for defraying the expen e of admini tering the Code, 

as determined by the Code Authority, hall be pro rated among 

employers at uch times and in such amounts a may b determined 

by majority vote of the Employers in the Subdivision entitle - to 

vote; sunh a se · ments to he pro rated upon the ba is of gross sales 

of the products of the Subdivision, f.o.b. car at point of manufacture or warehouse, for the preceding calendar year. 

For the purpose of c01nputing uch assessments, ach employer 

shall ubmit, upon reque t of the Code Authority, an accurate staten1ent covering the sales made during the above stated period. 

The Code Authority shall have no activitie not r elated to the 

pro, ision of this Supple.mental Code or the Code. Any employer 

shall be eligible for n1embership in the Applicant As ociation. 

In order that the Code Authority shall, at all times, be truly, 

representative of the Subdivision and in other r e pects com.ply with 

the provisions f the Act, the Admini trator may prescribe such 

hearing as he may de"'m proper; and, thereafter, if he shall find 

that the Code Authority i not truly repre entativ 0 or does not in 

other r espects comply with the provision of the Act, 111ay require 

an appropriate modification in the method of selection of the Code 

Authority. 

(b) Action by employers concerning and involving activities leading to and creating expense shall be by vote of the employers entitled to Yote, as hereinbefore provide l in thi Article, who are 

pre ent in person or by proxy duly executed and filed with the Code 

Authority, cast concurrently in ea h of the two following methods: 

1. By one vote of each employer. 

2. By , ote of employers weighted on a ba is of one vote for each 

$50,000 of the average annual sale of the products of this Subdivi ion, billed f.o.b. plant or warehouse, by each emplo3 er, for the 

preceding two calendar years a reported to the Code Authority to be 

computed at the beginning of each calendar year and to apply 

throughout the then current year. Each emplo er shall be entitled 

to at least one such vote. Such action as pecified in above paragraph 

taken at any meeting of employers .shall be by majority vote cast and 

computed in each of the two methods hereinabove provided. 

( c) Action by employers concerning and involving activities other 

than tho e leading to and creating expense and other than the election of the p 0 rmanent Code Authority shall be by a majority vote 
8 

of the employer entitled to vote; each such employer shall have one 

vote. 

( d) For the purpose of Administering and facilitating the enforcement of the provisions of this Supplemental Code, Code Au- thority, by its duly authorized representatives ( who shall not be an 

employer or in the employ of any employer affected by this Supple- mental ·Code) , hall have access to any and all statistics, data and 

information, filed in accordance with the provisions of the Code 

and this Suppl mental Code. All individual statistics, data and 

information of individual employers, as filed in accordance with the 

provi ions of the Code and this Supplemental Code, shall be kept 

confidential, except with the con ent of such employer pertaining 

to his own sta.ti$tics, and providing that nothing herein shall pre- vent publication of general summaries of such statistics of this 

Subdivision. 

( e) For Administrative purpo e.s, employers may be grouped by 

Code Authority to bring into working association employers having 

common intere ts and problems that are not common to all employers in this Subdivision. Each such group shall designate from 

among its members a Group Code Authority, and may adopt such 

rules :for the conduct o:f the business of the group as are not inconsistent with the provisions of this Supplemental Code and the 

Code; provided, however, that provisions of this Article V shall 

control the making of all examinations or audits and the use to 

be made of information so obtained with respect to any employer. 

(f) Except as otherwise provided in this Supplemental Code, the 

Code Authority or a Group Code Authority shall have power to hear 

all matters pertaining to the provisions of this Supplemental Code 

which may be submitted to it by any employer in its Group, having 

relation to the employers in said Group, or any of them, and to tba.t 

end, to the extent permitted by the Act, may investigate and ascertain the facts through such examination or audit as such Group Code 

Authority may deem necessary. All matters pertainin~ to a particular group shall be referred in the first instance to the Group Code 

Authority for that Group, if any has been established. 

Any decision of the Group Code Authority shall be final unless 

appeal is taken to the Code Authority or such decision involves matters requiring to be reported to the Code Authority, in which case 

pertinent information, papers and data in the possession of the Group 

Code Authority shall be turned over by it to the Code Authority, and 

the Code Authority shall pass on the 1nerits of the case and make 

final decision or report thereon to the Basic Code Authority or the 

Administrator. 

(g) The Code Authority or a Group Code Authority may act, 

within its powers, on the affirmative vote of a majority of its elected 

members; provided that any proposal receiving less than a majority 

vote shall be submitted upon the request of any member of the Code 

Authority or Group Code Authority having jurisdiction to a vote of 

all employers entitled to vote under this Supplemental Code or of 

all the employers entitled to vote comprising the Group affected 

respectively, and the Code Authority or Group Code Authority 

having jurisdiction shall act as determined by the majority of the 

number of votes so cast. 
9 

(h) If any employer in this Subdivision is also an employer in 

any other Subdivision of the Industr or in any other indu try, 

the provisions of this Supplemental Code, and the jurisdiction of the 

Code Authority hereunder, hall apply to and affect only that part 

of his bu ines and product which is included in this Subdivision. 

(i) An appeal from any action taken, or any rule or regulation 

established affecting the right of any employer or employee in this 

Subdivision, may be tak n to the Ba~ic Code Authority and thereafter to the Administrator. 

(j) Nothing contained in this Supplemental Code shall constitute the members of the Code Authority or any Group Code Authority as partners for any purpo e. or hall any member of th Code 

Authority or of any Group Co le \.uthority be or become liable in 

any manner to anyone for any act of any other member, officer, agent 

or employee of the Code Authority or any Group Code Authority 

exercising reasonable diligence in the conduct of his duties hereunder, nor be or become liable to anyone for any action or omi ion 

to act under thi Supplemental Code and the Cod , except for his 

own willful mi feasance or non-feasance. 

(k) The Code Authoi-ity may appoint a trade practice conunittee 

which hall meet with the trade practice committees appointed under 

such other codes as may b related to the Subdivision for the purpo e 

of formulating fair trade practice to govern the r elation hips between production u.n l di tribntion employers un 1er his Code und 

under such other to the encl that snch fair trade practices may be 

propo ed to the Administrator a amendments to this Code and im,..h 

other code . 

RTICLE VI- \.ccou NTING AND CosTING 

The Code Authority hall cau e to be formulated an accounting 

sy tern and method of co t fin Eng and/ or estimating capable of u e 

by all emplo3 er of the Subdivi i n. After such . y:--tem and methods 

hav been formulated, full detail oncerning them hall be made 

available to all employers. Thereaft r all employer· shall determine 

and/or estimate co~t in accordance wi,..h the principle of such 

methods. 

ARTICLE VII-SELLIKG BELOW REASON ABLE Co T 

When the ode Au,..hority detennin that an emergenc3 exi.__,ts in 

thi · Subdivision and that the uu e thereof is de. tructiYe pricecutting uch as to render ineff ctive or seriou ly endanger the main~ 

tenance of the provi ion of thi Supplemental Cod , the C de Auth rity may cau e to be determined the lo"TI'est rea~onable co t of the 

pro luct or products of thi · Subdivi:ion . . uch determination to be 

ubjeet to . u.ch notice and hearing a the Admini trator n1ay requir . The Admrn1 -trator ma approve di approve or m dify the determination. Thereafter during the period of the cm rgency, it hall 

be an unfair trade practice for any employer of the nbdivi i n to 

sell or offer to ell any product or products of the Subdivision for 

which the lowe t reasonable "Ost has been determined at uch prices 

or upon uch term. or conditions of ale that th buyer will pay less 

therefor than the lowe t rea onable co t of ..,uch products. 
10 

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

party, shall cau e the determination to be reviewed. 

For the purpo e of gathering statistical data for the determination 

or revision of a lowest reasonable co t, the. Administrator may require each employer to furni h such information concerning the cost 

of manufacturing and selling as the Administrator shall deem necessary or proper for such purpose. 

ARTICLE VIII-~1ETHODS OF PRICING AND TERl\IS OF PAYMENT 

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

or gr oup of the Subdivision it has been the generally recognized practice of at least two-thirds of such branch or group of the Subdivision 

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 days after notice. of such determination, file 

with the proper Group Code Authority ( or with Code Authority if 

there is no Group Code Authority having jurisdiction) net price lists 

or price lists with discount sheets and terms of sale and payment, 

individually prepared by him, showing his current method of pricing, and the Group Code Authority or Code Authority shall immediately publish and send copies thereof to the employers of this Subdivision co-operating under this Code, as described in Article V (a) 1 and who manufacture like products. Revisions of the method ot 

pricing and terms of sale and payment may be filed in like manner, 

from time to time thereafter, with the proper G:roup Code Authority 

or Code Authority by any manufacturer of such products, each such 

revision to beco.rne operative upo11: the date specified therein, but 

such revised method of pricing shall be filed with the proper Group 

Code Authority or Code Authority 10 days in advance of operative 

date. Copies thereof, with notice of the operative date specified, 

shall immediately be published and sent to all manufacturers of 

such product co-operating under this Supplemental Code, as described 

in Article V (a), any of whom may file, if he so desires, revisions 

of his m.ethods of pricing, which shall become effective upon the date 

when the revised method of pricing first filed shall go into e:ffect.1 

(b) If and when a Group Code Authority or Code Authority shall 

determine that in any branch or group of the Subdivision not now 

selling its products 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 bra,1ch or group are the same as, 

or simifar to, the distribution or marketing conditions in a branch 

or group of the Subdivision where the use of price lists, with or 

without di count sheets, is well recognized, and that a system of 

selling on net price lists, or price lists with discount sheets and 

fixed tern1s of sale and payment, should be put into effect in such 

branch or group, then each manufacturer of the product or products 

of such branch or group shall, within twenty days after notice of 

such determination, file with Group Code Authority or Code Authority net price lists or price lists with discount sheets with fixed terms 

of sale and payment, showing his method of pricing, and such 

1 See paragra,ph 2 of order approving this Code. 
11 

method of pricing may be thereafter revised in the manner hereinabove provided. Such methods of pricing and revisions thereof 

shall be "publi hed and sent' as described in Article VIII (a). 

Provided that Group Code Authority or Code Authority shall n1ake 

no determination to place any product of the SubdiYi ion (not now 

on a price list basis) on a price list basis, as provided in this paragraph (b) of Article VIII, unle s two-third of the employers co- operating under this Supplemental Code as described in Article V 

(a), who are at that tin1e engag d in manufacturing such product, 

hall a:ffirmah,ely con ent that uch determination be made. 

( c) o employer shall sell directly or indirectly, by any rn.eans 

·what oeYer, any product of this Subdivision at a price or at discounts 

or on terms of al and pa ment different from tho e proYided in his 

01Vn current method of pricing and term of sale and payment, as 

covered by the provisions of this Article VIII and proceedings thereunder · provided, however that any emplo3 er upon notice to the 

Code Authority may adopt a his own price a et forth in such 

notice, a lower price filed by another employer of this Subdivision. 

Such adopted price or withdrawal or u_pward rension of same shall 

be "published and sent" as de cribecl in Article VIII (a) for r evision . Such adoption shall become automatically void upon the 

withdrawal or re-vi ion upward of the price adopted. 

( d) If and when Code Authori y shall determine that it is unde-

\:1irable 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 r 0 spect of which such filing has theretofore been required, such 

filing shall cease and the provi ion of this Article shall not apply 

to such product unle s and until Code uthority shall again determine that 1ch filing be made. 

AnTICLE IX-Th.,\DE PRACTICES 

Each of the following acts or practices is dee1ned to be inimical 

to the be t intere t of the Subdivi ion and of the public, and each 

is, therefore, hereby declared to be, and to con titute, an unfair 

m thod of "ompetition, Yiz : 

1. l naocurate Advertising.-No employer shall publish advertising 

( whether pr:nted, radio, display or of any other nature), which is 

mi leading or inaccurat 0 in any material particular, noT shall any 

mployer in any way misrepre ·ent any goods (including but without limitation its u ·e, trade-mark, grade, quality, quantity, origin, 

size, sub tance, character, nature, fini h, material, content or preparation) or credit term , values, policie , ervice , or the nature or 

form of the business conducted. 

2. False Billing.-No employer hall knowingly withhold from 

or insert in any quotation or in,oice any statement that makes it 

inaccurate in any material particular. 

3. l nacc-urate Labelling.-N o em.player shall brand or mark or 

pack any goods in any manner which is intended to or does deceive 

or mislead purcha ers with respect to the brand grad , quality, 

quantity, origi.."'1, siz , substance, character, nature, finish, material, 

content or preparation of such good . 

4. D famation.-~ o employer shall defame a competitor by :falsely 

-imputing to him di honorable conduct, inability to perforn1 con-
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tracts, questionable credit tanding, or by other false representation, 

or by falsely disparaging the grade or quality of his goods. 

5. Destr-uctive Price Outting.-N o employer shall indulge in destructive price cutting. 

6. T hrcats of Law Suits.-N o employer shall publish or circulate 

unjustified or unwarrante<l. threats of legal proceedings which tend 

to or have the effect or harassing competitors or intimidating their 

cu tamers. 

7. 1 ecret Rebates.-N o employer hall secretly offer or make any 

payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in the form of money 

or otherwi e, nor shall any employer secretly offer or extend tu 

any customer any special service or privilege not extended to all 

customers of the ·ame class, for the purpose of influencing a sale. 

8. Bribing Employees.-No employer shall give, permit to be given, 

or offer to giv 0 , anything of value for the purpo e of influencing or 

rmYarding the action of any employee, agent, or representative of 

another in relation to the business of the employer of such employee, 

the principal of uch agent or the repre ented party, without the 

knowledge of ·uch employer 1 principal or party. This provision 

sh all 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. 

9. I nducing Breach of Ew7J8ting Oonfra.cts.-No employer shall 

wilfully induce or attempt to induce the breach of existing commercial contr acts between competitors and their customers by any 

false or decepti, e means, or interfere with or obstruct the performance of any such contr actual duties or services by any such means, 

with the purpose and effect of ha1npering, injuring or embarrassing 

competitors in their business. 

10. Ooercion .-No employer shall require that the purchase or 

lease of any goods be a prerequi ite to the purchase or lease of any 

other goods. 

11. I nstallation Oosts.-No employer shall contract to install any 

equipment covered by this Subdivision without charging for the cost 

thereof. This provision sha11 not prevent any employer furnishing 

supervisory or millwright service, provided such service is charged 

for at the prevailing rates for such class of work, plus living and 

traveling expenses, with no guarantee of total maximum charge. ' 

The provisions of this paragraph shall not apply to Multiple VBelt Drives sold in connection with, or as a part of, a contract for 

driving and/ or driven machinery, the terms of sale of which call for 

erection or installation. 

12. Contract Ohanges.-N o employer shall change n. contract of 

purchase and sale after it h as been executed with a purchaser, by 

modifying or extending the warranty given in such sales contract 

as to defe ts in the product covered or the liability of the employer 

thereunder. 13. Trade S ec1·ets.-N o employer shall procure, otherwise than 

with the con ent of another employer, any information concerning 

the busine s of such employer which is properly regarded by such 

employer as a trade secret or confidential within his or its organization. 
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14. Discounts.- o employer shall s 11 on the ba is of a dollar 

volume di count. Thi tihall not prohibit qu tino· of quantity dis- counts on publi hed price li t. 15. Oonsigmnent.-N o mployer hall con. ·ign any product to any 

one or any la of trade, except in trading areas ,, here exi ting competinc, stocks are now maintai1.led by an employ r; provided however, that the following practices are permitt d: (a) The transfer 

of an exi ting con ignment from one on i o·nee to another con ignee 

in th . ame trading area· (b) the conver ion of a bona fide sale into 

a con ignment for the purpo e of protecting the eller -when the purchaser is financially embarra sed ; ( c) tl e concluctino- of field tests 

or demonstration of newly designed product or of a new applica- tion of a product by any employer, without compen ation. 

16. 0-1,t,aranty.- Jo employe · hall guaranty any product be3 ond 

the regular guaranty as specified in the terms and condition of ale 

on file with th Code Authority and in effect at the time of the ale 

of such product; thi doe not appl to performance or capacity 

guaranty. 

ARTI LE X-SALES FOTI EXPORT 

The provi ions of this Code concerning sale hall not apply to 

direct export sales of any product, or to sale· of any product de tined 

ultimately for export. The term "export ' hall include all hipments to all places without the e, eral tate of the United States 

and the Di trict of Columbia; l rovided, however, that no shipment 

to any territory or po ses ion of the United States shall be considered a export when any emplo er is engaged in the Subdivision 

in such territory or po se ion. 

ARTICLE XI-l\1oomcATION 

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

from time to time cancel or modify any order, approval, licen e, rule 

or regulation issued under Title I of the Act. (b) A study of the need of the Sub di vi ion i continued after 

the effective date, amendment , additions or r 0 -vi ion to thi Supplemental Code may be propo ed which, upon being a s 0 nted to in 

writing by two-thirds Yote of employers cooperating under thi Supplemental Code, shall b in full force and effect from an 1 after approval thereof by the Pre ident. 

ARTICLE XII-1V ITHDRA w AL 

Upon thirty day. noti e to the Ba ic Code Authority and to the 

Administrator, thi Subdivi ion may, upon the concurring affirmati, e , ote of employer within the . ail Subclfrision entitled to ca t 

two-thirds or more of all the votes that might be cast by all employer within the SubcliYision entitled _to vote thereon withdraw 

from the juri diction of the Ba ic Code \..uthority. The eligibility 

of voter an l the method and eff ect of uch voting shall be in accordance with the provision of Article V hereof. After and in the 

event uch withdrawal i accompli hed, thi Supplemental Code, together with the provi ions of the Code, shall become and be the sole 
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14 3 1262 08495 2547 

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-J\,foNOPOLIES 

Applicant imposes and shall impose no inequitable restrictions 

on member hip therein. The Supplemental Code presented by it 

i 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 i designed to effectuate the policy of the act. 

AnTICLE XIV-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

employers in the Subdivision on the eleventh day after its approval. 

Approved Code No. 347-Supplement No. 30. 

Registry No. 1399-G9. 

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