Approved Code No. 347-Supplement No.6 Registry No. 1399-31 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF }1.,AIR COMPETITION 

FOR THE 

WOODWORKING MACHINERY 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON MAY 14, 1934 

WE DO OUR PART 

UNIV. OF· Fl Ul. 

u. 

. -· .. .._ o- - · I A \i ~· ... :.. ... 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent 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 office of the Bureau of Foreign 

and Dome tic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COM.l\IERCE 

Atlanta, Ga.: 504 Post Office BuiWing. 

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. 

CleYeland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, l\lich.: 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, M:o. : 1028 Baltimore A venue. 

Los Angeles, Calif. : 1163 South Broadway. 

Loui ville, 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 Tru t Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 347-Supplement No. 6 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WOODWORKING MACHINERY INDUSTRY 

Approved on May 14, 1934 

ORDER 

SuPPLEMENTARY ConE OF FAm Col\IPETITION FOR TI-IE WooDwORKING 

lVIACHI.NETIY INDUSTRY 

A DIVISION OF THE MACHI~ERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in 

full compliance with the provision.., of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a 

Supplemental Code of Fair Competition for the vVood working 

Machinery 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: 

NOW, 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 tl1e 

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 provi ions 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 an l it is 

hereby approved subject to the following conditions: 

1. That the Association of Manufacturers of "\Vooclworking 

Machinery shall amend its Con titution and By-Law to the satis- faction of the Administrator within the time set forth in the Order 

of the Admini trator, dated April 26, 1934, which order extended 

the original period of thirty (30) days et forth in the Executive 

Order of March 17, 1934, approving the Basic Code of Fair Competition tor the ~1achinery and Allied Products Industry. 

2. That the provisions of Article VIII, Section (a) in. ofar as they 

prescribe a waiting period between the filing with the Code Authority (or such agency as ma~r be designated in the Supplemental 

Code) and the effective date of price list , as originally filed and/or 

68776°-544-78-34 (1) 
2 

1'('\·i ~ 1 1ri li:t. r re,·L (1 t rm: an(l con<liti n. of sal e and 

th ~ h r 'by ar' stay d p<'tHling m fnrth r nl r. 

3. That tb 1 r Y ~· ion · of .. \rticlc VIII, 1 cti n ( ) be • n th y 

h r by ar , tnyE'<l pendino· the ·ubmi . i n of . ati fa tory Yi] n 

c· n · rning <.li:->trihution of the produ t f the , ub livi.-i n t the 

..Admini. trator. 

.ApproYal re ·omnwnLl c1: 

\. R. L .\ ... - -y 

1-Jec I ' . JOIL.T N 

1dmini -f'r(ltOJ' fo,· ndn.·t?~al R eco ery . 

Di i. ion .ddmini ·trator. 

'VA JILT TO"', . ., 

JJ ay 14, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This report relates to the Supplemental Code o:f Fair Competition for the Woodworking Machinery Subdivjsion o:f Machinery 

and Allied Products Industry us proposed by the Association o:f 

Manufacturers o:f \Voodwurking Machinery. 

A public hearing was held in vVashington, D.C. on December 6, 

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

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

National Industrial Recovery Act and all persons were given :full 

opportunity to be heard. 

GENERAL STATElVfENT 

The \Voodworking Machinery Subdivision, being truly representative o:f the manufacturers o:f 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 in the Code o:f Fair Competition :for the 

Machinery and Allied Products Industry, approved by you on the 

seventeenth clay of March, 1934. 

The Subdivision as defined in the Supplemental Code includes all 

those engaged in the manufacture for sale of woodworking machinery and accessories and parts thereof. However, the manufacture 

of sawmill machinery is excluded, as such machinery is manufac~ 

tured within another subdivision. 

ECONOMIC EFFECT 

Annual sa les in the Subdivision declined from $20,200,000 in 1929 

to $3,500,000 in 1932, or 82.7 per cent. No estimate was made by the 

Subdivision of the value of sales for the year 1933. Aggregate invested capital has shown a 33 per cent decline since 1929, "hile production capacity has remained constant. 

Est.imat.es showing employment for the entire Subdivision submitted in the code application, indicate that employment declined from 

3,900 wage earners in 1929 to 1,000 in 1933, or 74.4 per cent. 

Average hours per week were reported to be 51.5 in June 1929; 

42.1 in June 1933; and 36.9 in October, 1933. In October, 1933 the 

average hours were 28.4 per cent less than the June, 1929 average. 

The effect of the 40-hour provision with iJroduction at more normal 

levels ma.y be estimated on a basis of total man-hours per week in 

1931 by dividing the number of hours prescribed in the code. After 

1929 man-hours declined steadily :from 200,850 to a minimum of 

31,500 in 1932, or approximately 84 per cent. Man-hours for 1933 

(3) 
4 

ha' in r a. cl from n · 0 f r th first 1x m nths to 53 030 for the 

thir l quarter, r 2 per ent. 

If it j , a "Umed that the G 2.... man-h ur. for 1931 ar representative of th . Yolum of pr cln tion for that ar, an a rea on· 

abl m a nrc of man-hour requirement in a more normal I riod, 

the a lor tion of the 40-honr week would r quir a fore of ar proximate!. r 1.700 emplo} ee or 44 1 er ent of the 1929 or kina level. 

Owing to th impo sibility of all mployee of the Lilidivision 

workino· th maximum 40-hour , the average work week will be 

shorter a 36 a ume l eff ctive hour~ and employment correspondingly great r · viz. 1,900 workers will be required to produce the 

1901 volume. 

Th minimum wa!te pro' isions propo eel for the subdivision 

which are operating under the Code of the :Machinery and Allied 

Produ t Industry are ba eel on a flat minimum hourly rate of 32 

cents per hour for the South and the followino· city population 

differential for all other sections of the United States: 

Over 50,000 population, 40 cents per hour 

OYer 10,000 to 50,000 population, 38 c nts per hour 

10,000 population and under, 36 cents per hour 

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

proYicles that women engagecl in substantially the same work as 

men shall recei' e the same rate of paJ as such men employees; that 

the minimtm1 wage for women emploJees engaged in plant operations hall 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. 

Di tributions of the number of factory workers receiving classified 

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

only po sible to estimate the approximate number of factory workers 

who will receive the benefit of the proposed minimum hourly rate , 

regardless of location, on the basis of the number of factory worker 

re-ceiving less than the designated hourly rates as of June 15, 1933. 

Est imatea number of ta-etory workers 1·ecciving less than designated hourly 

Tates 

Proposed minimum hourly rates 

40 cents (other U.S.) .•. __ .... ___________ __ . ____ . . . __ . .. _________ ...... _____ _ 3 cents (other U.S.). _ ... . ___ ____ _______ _________ _ . . . .. ___ ......... _ ....... . 30 cents (other U .8 .) .. _ ..... ... __ . ___ ..•.. . . . . . ... . . . __ ... ____________ ..... . 32 cents (South) __ .... _. ___ . _ ..... . . ... _____ . __ ________ .... __ .. ____ ..... _ ... . 

Distribution of factory workers receiving less 

than the minimum re· gardless of location 

Approximate Approximate 

percent number 

25. 2 

20. 6 

Hl. O 

. 7 

351 

2 7 

223 

121 

Ba · cl on th li ·tribution a · f J un 15 1 33 and on the pecified 

percentaae. of th numb r f fa t r worker receivina les than the 

cl iO'nated rat · shown in the abov' table th adoption f th prol'o. cl minimum rates will probably an. ' an increa e in fa tor 

pa rolL·. The e.-timate l in rea a , of June 15 J 933 regardle s of 
5 

location of the workers, will probably, under the most favor:able 

conditions, not exceed 3.5 per cent as mning only upward adJust- ment in the bracl{ets below the 40-cent minimum and no change in 

man-hour requirements. 

RESul\IE OF SUPPLEMENTAL CODE 

ARTICLE I. Purposes.-States the purposes of the Supplemental 

Code. 

ARTICLE II. Definitions.- Accurataly defines specific terms applicable to the Subdivi ion a used in this Supplemental Code. ARTICLE III. E1nploy1nent Provisions.-Provides for the adoption 

of the employment provisions of the National Industrial Recovery 

Code of the Machiner · and Allied Products Industry, as approved 

by you on the seYenteenth day of ~1arch, 1934, and as from time to 

time amended. 

ARTICLE I\ . Adoption of Otlter P1·ovisions of the Oode.-Provides for the adoption of Article II, VI, VIII, and IX of the 

National Industrial Recovery Code of the Machinery and Allied 

Products I ndu try~ in accordance with the conditions in thi Article 

governing their adoption. ARTICLE V. Organiza.tion and Ad1ninist1·ation.-Provides for the 

establishment of a Code Authority and defines its powers and duties. 

ARTICLE\ I. Accatmting and Oosting.-Provides for the establishment of a uniform accounting system and method of cost finding 

and/or estimating to be used by all employers in the Subdivision. ARTICLE VII. S elling Below R ea8onable Oost.-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. Price Lists.- Provides for 1nethods of setting up, 

revising and filing price lists and discount sheets and terms of sale 

and payment. 

ARTICLE IX. T1·ade P1·actices.- Sets forth unfair methods of 

competition. 

ARTICLE X . Sales for Er:cport.- N o provisions of this Supplemental 

Code relating to pricing and marketing shall apply to direct export 

ales or to any product destined ultimately for export. 

ARTICLE XI. jJf odifications.- This Supplemental Code and all provisions thereof are made subject to the right of the President, in 

accordance with Sub ection (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 

amendments, additions, revisions or supplements, proposed by the 

Code Authority may be submitted from time to time for the 

approval of the Administrator. 

ARTICLE XII. Llf onopolies.-N o pro vi ions of this Supplemental 

Code shall be so applied a to permit monopolies or monopolistic 

practice , or to eliminate, oppress or discriminate against small 

enterprises. 

ARTICLE XIII. Effective Date.-This Supplemental Code shall 

become effective on the eleventh day after its approval by the 

Administrator. 
Tb .·i tant D puty 

aid uppl m ntal o 1 

th ba i · of all th pr 

I fin 1 that: 

6 

FINDI G 

lmini trator in his final r I ort to me on 

ha incr found as 1 erein t forth and on 

ding in thi matter : 

(a) ai<.l ur1lement.al Code is w 11 l i o·n to promote the 

p li .ie · and purpo e of Title I of the N ati nal Indu trial Recovery 

A t, in luclino· r moval f b tructions to the free flow of interstate 

an 1 for ign commer which tend to climini h the am unt th reof 

and will proYi l for the general welfare by promotincr the oraunization of inclu try f r the purpose of cooperative a tion among the 

trud aroup b.' inducing and maintainino· united action of labor 

and manaoement under a lequate crovernmental sanction and uper-

"'i ion, by eliminating unfair C0111I etitiYe practice by promoting 

the full t po.;: ·ibl utilization of the pre nt productiYe capacity of 

inclu tr+:) by aYoicling undue restriction of pro lu ion (except as 

nut)' b temporarily req'Iirecl) b: increa. ing the on umption of 

indu.trial and agri ultural product through increa incr purcha ing 

power by redu(;ing and relieYing unemplovment by improvin 

standar Is of labor, and by othorwi rehabilitating in lu try. 

(b) Said Subdivi ·ion normally employs not n1ore than 50 000 

mpl yee ; and i · not clac::sified by me as a major in ustry. 

(c) The Supplemental Code as approved complies in all re poets 

with the pertinent provi ions of sail Title of said A t, including 

without limitation Subsection (a) of Section 3, Sub ection (a) of 

S ection 7 Rnd ubsection (b) of Section 10 thereof · and that the 

applicant as ociation is an indu trial a ·oeiation truly repre ntative 

of the a£ 1· aid Subdi' ision · and that aid as ociution impo e no 

inequitable re triction on admi sian to membership therein. 

(d) The Sur plen ntal ode i not de i ()'ned to and will not permit 

monopolies or monopolistic practi c-·. 

(e) The Suppl€m ntal Code is not de i,o·ned to and will not eliminate or oppr ..: . mall enterprises and will not operat to eli criminate 

a ·ain. t th m. 

(f) Tho e en aaged in other tep of the conomi proc haY not 

been d prived f the right to be hoard prior to approYal of ~aid 

UJ plemental ode. F r hese reason , therefore I have approve l thi upplemental 

ode, provided that certain provisions relating to 1 ric publication 

are ta ·eel; that the onstitution and By-Law £ Applicant be 

revi e l a stat d in the Order; an that the provi. ion of Article 

VIII ecti n ( ) b stayed until ·ati fa tory Yid n con crning 

cli:tribution f the products of the Subcliyj ion i ubmitt cl to the 

Admini ti·ator. · 

Re p tfnlly, 

MAY 14, 1934. 

Huon . J IIN oN, 

Lldndnistrat&r. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE WOODWORKING MACHINERY INDUSTRY 

A DIVISION OF MACHINERY AND ALLIEI) PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy .of Title I of the National Industrial Recovery Act, the foJlowing provisions are established as a Supplemental Code for the Woodworking Machinery Subdivision of the 

Machinery and Allied Products Industry, and together with the 

National Industrial Recovery Code of 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 Associ~ttion of l\1anufacturers of Woodworking Machinery, a trade organization, all members of which are 

engaged in the manufacture for sale of the products of the Woodworking Machinery Industry Subdivision of the Machinery and 

Allied Products Industry, which organization is truly representa:-

tiYe of this Subdivision. 

"Indu try" means the Machinery and Allied Products Industry, 

as defined in its National Industrial Recovery Code as approved 

by the President, l\1arch 17, 1934 and as such definition may from 

time to time be amended. 

"Subdivision" means this Woodworking Machinery subdivision 

of the Machinery and Allied Products Industry as defined and set 

forth in paragraph 39 of Article II of the National Industrial Recovery Code of the Machinery and Allied Products Industry as 

follows: 

"Woodworking Machinery Subdivision" means the manufacture 

for sale of Woodworking Machinery (exclusive of Saw'null 

Machinery) accessories, and parts thereof, and includes all those 

engaged in such manufacture for sale. 

" Code ~' means the National Industrial Recovery Code of the 

Machinery and Allied Product Industry, as approved by the President. and as from time to time amended. 

"Per on" 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 any person engaged in this Subdivision of the 

industry either on hi own behalf or as an emr loyer of labor. 

"Employee" mean any one w-ho is employed in this subdivision 

by any uch employer. 

58770°-544-78-34- -2 (7) 
8 

··The ~\. t 'm ' :1 ~· itle I f th uti nal Industrial I c ,. rv A t. '· r he I 1' \-,id " Ill' 111 am; the 1 ]'()"iid nt of th nit (1 tat ::-.'. 

'ThC' Administrator means th A lmini. trat r for Indu. trial 

'c o ·erv . . na.i'c od \.n hority ' mean . the 

·hinerv and ... lli d rodtlC · Inclu. tr a 

" 'de ~\.uth rity ' mean: th 

ubLliYision a. 1 r Yid d b ih o . 

"Group d Auth rity me. n · the Cod \.uthority f r any 

gronr or cla . ifi ntion of proclu t within thi ub livi c:;ion 

tn eli tm 1 r he a nth rity of Articl V of thi Suppl m ntal 

·· Pnbli ·h m an to make a\'ailable to the publi . 

AnTICLE III-EMPLOTIIIENT Pnon ·w~ · 

Tl e following Article · of th Code, Yiz; Ar i l III ': \Vorkinrr 

H ur ', Arti le IV, 'Wages"; and Article V, 'General Labor 

ProYi ·ion , are made a part of this Su pplementa) Cod , with the 

ame effect a -· if they were written into +-hi ur plem ntal ode. 

ARTICLE IV-ADOPTION oF OTHER Pnovr ION F THE ConE 

The following Articles of the Code viz: Article II ' Definitions ' 

Article VI &.Admini tration" to the extent that the · hall be applicable to this Supplemental Code as such or a it ma hereaft r 

be a lmini tered as an autonomous Code; Article VIII '~ lVIoclificati n. and Termination ; and Article I..lr '' '\'\ ith lra,Tal · are her by 

male a part of this Supplemental Code with the arne effect a if 

they were written into this Supplemental Cod except as her in 

mo lified. 

ARTICLE V-ORGANIZATION AND AnML·r TRJ1.TI N 1 

(a) To aclmini ter upervise and facilitate the p<'rformanc of 

the 1 r Yi ion. of thi Suppl mental ode there i h reby tab

li h (l a Code Authority which hall consi t of · 

1. h Ex utiv Connnitt of the A ocia ion of ~Ianufacturer · of \Vooclw rkinrr l\1a hinery on i ting of not le than fi\" , n r mor than io·ht member '· 2. ne adclitionc 1 m mber t b ele ted in any fair mann r 

with th approval of the Admini trator by mplo r in thi · . ubli ,-i..,ion, not member · of the a.ppli ant who ar oop ra ino· under 

thi · ·ocl a de crib 1 in Se tion ( ) h reo£ if . o c1 sir c1 b. ·uch 

non m mber ·. 

3. Th Ad mini ·trator may at hi.· discr tion ap1 int on a ditional m mh r with ut vote an l ithout exp n · t hi: 'nblivi:-:i n. 

(l>) Th C tl ' ... uth rity shall a 1 pt rule an 

it rot dur unc1 mplu ·u ·h 1 r ·onn 1 as it m, ' 

( ·) ny empl n r in thj :nbdiYi:i n hall b ntitled to vot 

at 1 ti n of. a1H1 shur in th b n fit: of he a · ivi i · of the ode 

Au th ri y an l nu · participat . in an nd avors of the applicant 

1 .'ce r:a r ngrnph :..? ( 1) of order np[1 r ov ing this 'od'. 
and Code Authority in the preparation of any revisiOns of or 

additions or supplement to this Supplemental Code, subject to 

provisions of Section A and E of Article V. 

(d) Action by employers in any subdivision meeting on Supple- mental Code revi ions additions or supplements, or the transaction of other business of the subdivision under this Supplemental 

Code shall be by a vote of the employ...,rs entitled to vote as herein 

provided, who are present in person o ... by proxy duly executed 

and filed with Code Authority, cast concurrently in each of the 

following methods : 

(1) By one vote by each employer. 

(2) By a vote of employers weighted on the basis of one vote 

for each $100,000 of the annual average of sales by each employer 

for the next preceding three 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. 

(e) Each employer in this subdivision, subject to the jurisdiction 

of this Supplemental Code and accepting the benefits of the activities 

of the Code Authority hereunder, shall pay to the Code Authority 

his proportionate share of the amounts necessary to pay the cost of 

assembling, analyzing and publication of such reports and data and 

of the maintenance of the Code Authority in connection with its 

actiYities relative to the preparation and adm.inistration of this Supplemental Code, said proportionate share to be based upon the volume of shipment. for the next preceding three years and/ or uch 

other factors as the Code Authority may prescribe and the 

Ad111inistrator may approve. 

(f) \Vith a view to keeping the President informed, as to the 

observance or non~observance of this Supplemental Code, and as to 

whether this subdivision is taking appropriate steps to effectuate 

the declared policy of the Act, each employer shall prepare and file 

with such person or organization a Code Authority may designate, 

and at such time and in uch manner as may be by Code Authority 

pre cribecl (to be held and used subject to the limitations of this 

Article V), tatistics of plant capacity, volume of production, Yolnme of sales in units and dollars, orders received. unfilled orders, 

stock on hand inYentories, ''raw an l finished., number of employees, 11age rate , employee earnings and hours of work and such 

other data or information a the Code Authority, ubject to review 

by the Administrator, may from time to time require. 

Code Aut 10rity shall file with the Basic Code Authority such of 

the data and tati tical information referred to in preceding paragraph as may be required. 

In addition to information required to be submitted to Basic Code 

Authority, there hall b furni heel to Government agencie such 

statistical information a the Administrator may deem necessary for 

the purposes r ecited in Section 3 (a) of the Act. 

(g) Except a otherwi e provided in the Act, all tatistic data 

and information filed in a cor lance with the provisions of this 

Supplemental Code shall be confidential; provided, however, that 
10 

nothing h r in :hall pr ven th publication f g n ral summarie .. 

f ·u h tati,·ti ·. , la a and inform. tion. 

Th tati -ti ·s data ancl inf rmati n of n mpl 'r :hall not b 

I' V al cl to any tb 1' mrloy l' , XC pt, tbni for th p 1rpo 'C f aclmini t ring or fa ilitat.in cr th nf r · ment of th pro ision · of this 

UIIlenLntal c1 , t Authority, b it duly auth riz c1 r pr -

. ntatiYe ' ('wh hall n t be an mr lo r n r in th mploy f any 

mploy r atfe t cl by thi , upplemental ocl ) , ·hall have a ·c : to 

an r &lid all tab tic data an l information that may bt' fnrni:h cl 

in accordance wi h the provi ion of thi · ur plcm ntal 1od . (h) Aggr o·ation f mpl ·er having a mm n int re tan l onl111 n probl m · may be aroup l by C c1 Authority f r aclmini tratiYe purpo Ther hall be a roup o l Authority appr Y d or 

ar p inted by ode uthorit for each uch group. 

If formal mplaint i made to Cole Authority tl at pr vi .. ion. 

f thi.., Supplemental Code have been violated by any empl r. th 

de Auth rity or pr I er Group Cod Authority may ·au e uch 

inve tio·ati n or audit t be 1nade to th extent p rmitted b th Act, 

a mav h de med nece .. ary. If uch inve tigati n i made by 

Group Co 1 Authority it hall report there ults of ·u h inv tigation 

or audit to ode Authority for action. 

C de AutLority . hall have the right to the extent permitt l b 

the Act to analyze any tran action camino· under he cope of thi 

upplemental Code on which any unfair competition i c...lleged 

to show evidence of any violation of thi Supplemental od and 

to rep rt any uch alleged violation to the proper authoritie for 

action. 

(i) It i , however, eXJ re ly provi led that th juri eli ·tion of 

Code Authority under this Supplemental Code over an emplo. er~ 

·hall be llmited to that portion of the bu ine s and cmpl 1nent of 

u h mployer which is within thi Subclivi ion. 

(j) In order that the Code Authority . hall at all time b truly 

repre entative of the Subclivi ion and in other re pect comr ly with 

the provi ions of the Act, the Admini"trat r 1nay provide u h hearinO' as he may deem pro1 er · and thereafter if h ·hall find that th 

Cod \.uthority is not truly repre entative or do s not in ot.her 

re. pe t con1ply with the provi ion of the A t may requjr an appr priate modification in the method of sele ti n of the Code 

Authority, or any Group-Cole Authority. 

ARTICLE VI-A co NTING AND c TING 

AnTI LE VII- ELLI T BELOW REA. ONABLE o T 

\Vhen the ocl Auth rit 

in this inclu try and tha th 

d t rmine that an m rO'en cxi ts 

th r f is de ructiYe pri e-cut-
11 

ting such as to render ineffective or seriously endanger the maintenance of the provisions of this Code, the Code Authority may cause 

to be determined the lowest reasonable cost of the products of this 

industry, such determination to be subject to such notice arid 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 member of the industry to sell or offer to sell any products 

of the industry for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale that 

the buyer will pay less therefor than the lowest reasonable cost of 

such products. 

' Vhen 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) I f and when the 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 discotmt sheets and fixed terms of sale and payment, each 

employer 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 

showing his current prices or prices and discounts including f.o.b. 

points and terms of sale and payment, and such additional copies 

as Code Authority may require, and the Code Authority shall imn1ediately publish the same, make available to all interested parties, and 

send copies thereof to all known employers manufacturing such 

specified products who are cooperating under this Supplemental 

Code. 

Revised price lists and/ or di count sheets andjor terms of sale 

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

Authority by any employer, to become effective ten (10) days from 

date of filing with Code Authority, unless Code Authority shall 

authorize a shorter period. Copies thereof with notice of the effectiv·e date specified, shall be immediately made available to all interested parties, published and ent to all known employers manufacturing such product who are cooperating under this Supplemental 

Code, any of whom may file if he so desire , revisions of his price 

li~ts and/or di count sheets and/or term of sale and payment 

which shall become effective upon the elate when the revi eel price 

list andjor eli count and/ or terms of ale and payment sheet first 

filed shall go into effect. 2 

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

of the Subdivi ion not now selling its product on the basis of pric~ li ts, and/ or discount heets, -n·ith fixed terms of ale and 

payment the di tribution or marketing condition in the group 

are the ·ame us, or s· milar to the di tribntion or marketing conditions in a. o-roup where the use of price li.·t. ·, rrndjor discount sheets 

and fixed term of ale an 1 payment i ''ell recognized and that a 

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

Tslem f scllin~ on net price li.-ts or 1 ric and eli. c< unt he t 

with fix d t rm.· (Jf • ale and pa~ m .nt . h ul 1 n into cfl' 

:-·ueh group hen ca ·h manufa ·tur r of th 1 r luct r 1 roduct 

:: 1<.:h ~roup . hall \\·itl in tw n+y (20) lay: aft r noti of . ncb 

d termina ion, file \\'ith Cod _ nth rity net 1 ri e li.-L· or 1 ri · li. t 

nntl di:- nnt ·he t:, includinrr f.o.b. 1 int and fL· d term f . al 

and 1 ayment, . ·ho1Ying hi.- 1 ri e and 1i._counl · an l t rm · of . al 

and payment. , nd ·u h pri · ' li · an ljor li count heet.· and/ or 

t rm of . ale and paym nt may be th r after r vi eel in th n ann r 

h r inl fore 1 r vide l. Provi led. that o l \.uthority shall make 

no let rmination to rlace any procluc of th ubclivi ion (n lt n '' 

on a, price-li t ba i ) n a price-li t ba i a provided in thi I aragraph (b) of \.rticl \ III unl two-third of th employ r ( 

operatin in thi ole ~ I rovi l c1 in Article V ) wh arc at that 

tim ngag l in manufacturing uch prodnct, hall affirmative} 

con nt that. u ·h d termination be made. 3 

( ) To the xtent permitted bv the Act ode Authorit~r . hall 

ha\ pov; er, on it owi initiative, or on th om plaint of any emplo · r to inYe ·tio·ate any price and/ or term · of .·al and 1 ayment 

for an r product hown in an price li t ~md or di ount an 1/or 

term of ale and payment heet o filed \Yith Code Authority 1 y 

any employer and for the pnrpo e of the inve tigation ther f, to 

require uch employer to furni ·h uch information concernincr the 

co t of manufacturing and elling uch pro luct as Code Auth rity 

shall deem nece ary or proper for uch purpo e. 

(d) No employer shall ell directly or in lirectly by an m an 

what oe' er an pro luct of the Subdivision covered b. provi ions 

of thi. Article VIII at a price or at di count or on tern1 of al 

and payment different from those provided in his own curr nt net 

pri e li t or price li ts and di count an 1/or term of . ale an l payment sheet. 

(e) No employer shall ell to or through any di tributor who 

shall fail to agree to re ell in accordance with the I rovi ·ion of 

Articl VII VIII and IX of thi Supplemental Code. 

ARTICLE IX-TRADE PnA TI E 

Unfair trade practice hall be deemed to be practic or act 

whi h by ubterfuge concealment mi repre ntation or eli crimination, r ult, or tend to re ult in s lling at oth r than publi he l price 

or in deceivin or mi leadin purcha er or in mi rei r ntinc:r th 

product of competitor . 

Any de iation from the tandards et forth in thi. Arti le IX 

or any amendment thereto by any m mb r of thi ub 1.ivi ion, 

either directly or indirectly throuc:rh hi ag nt hall b con id red 

an unfair method of competiti n and a iolation of thi Code. 

The following p ific prac ic ar xampl of unfair m tho l 

of competition a d fin l abov : 

R LE 1. No member of thi ubdivi ion hall retl offer or 

make to any cu tomer a nt fiduciary or repr entativ f u tomer 

any paym nt or allowance of a rebat refun l, commi ion, credit, 

unearn d di c unt or x allowanc wh th r in th - form f money 

• See paragraph 2 (3) of ord r ap roving this Code. 
13 

or otherwise, nor shall a member of the Industry seer tly offer or 

extend to any customer any pecial service or pri Yileo-e not extended 

to all cu tamers of the same cla s for the purpose of influencing 

a sale. 

RULE 2. No member of this . ubdivi ion hall give permit to be 

given or directly offer to give anythino· of value for the purpo e of 

influencing or rewarding the action of any employee ao-ent or representative of another in relation to the bu ine of the employer of 

<;:uch employee, the principal of uch agent, or the repre nted 

party, without the knowledge of uch employer principal or party. 

Commercial bribery provisions hall not be con trued to prohibit free 

and general di tribution of articles commonly u eel for a l Yerti ing, 

except o far a uch article are actually u eel for commercial bribery 

a above defined. 

RULE 3. _-\.ny di crimination between pnrcha ers of the ame cla , 

by the ale of an 'article ha\ing a publi hed price at any price other 

than the eller publi hed price by mean of direct or indirect price 

.conces wn or by mean of any privilege not extended to purcha ers 

generally. 

R-cLE 4. Lntruthfully advertising repre enting or marking any 

product. with int.ent to decei\e or 1n1 lead. 

R ULE 5. \Vrongfully enticing a11ay the employee of competitors 

with the purpo e and effect of unduly hampering injuring or 

embarra~ ing competitors in their busine s. Nothing in thi paragraph hall be o interpreted as to in any manner re trict the rio-ht 

of any emplo -ee to eek employment with any employer at any time. 

RULE G. "\Iabng or cau ing or permitting to be made or publi heel 

any fal e. untrue, or decepti\e statement by way of ad\erti ement 

or otherwi e concerning the o-rade, quality quantity ub tance~ 

character na ure origin ize, or preparation of any product of the 

indu try. having the tendency and capacity to mi lead or deceive 

purcha;sers or pro pective purchasers. 

R·uLE 7. The defamation of competitors by fal ely imputing to 

them dishonorable conduct inability to perform contract que tionable credit standing, or by other fal e representations or the false 

di paragement of the grade or quality of their good with the 

tendency and ~apacity to mislead or deceive purchaser or pro pective purcha er . 

RuLE . Di crimination either dir ctly or indirectly in the prices 

paid for ~ c1 equipment whether in ca h or as a credit in onnec- tion with a ._ale of products of this Subdivision provided that this 

shall not prevent eli crimina.tion in price or all 'vance nece. arily 

resulting from difference in the make model, age or condition of 

the u~ed equipment o traded for or purc.:ha_ed. To avoid such 

unfair eli crimination every employer either dir tly or indirectly 

throtwh hi. ao·ent.· hall tabli h, and announce throuah Code 

Authority, hi · own pric on u ed equipm nt for the purpo e f 

purcha. e or allowance in trade in connection with the sale of 

product of thi. ubdiYi ion, in the same fa:::.hion a he e tabli hes, 

reYi e and. publi. ·h- hi price on produc f thi ubdivi ion as 

provided for in Article \ III of thi uppl mental C d . 

RCLE D. Inducing or attempting to induce any breach of e:xi ting 

contract between a competitor and hi cu tomer or wronrlully interfering with or ob true ina the performance of any such bcontract. 
14 

R LE 10. :rranting i ith r a .· lling ·omm1 1011 

unt. o any con '<'rn or individual oth r than ona fid 

machiner r ·ll al r r .-ale. m n. 

R LE 11. --. llinr: r u ting f r l liv r a an p int · oth r than 

I " ifi d in publi. h 1 I ri · . · heclul .- "-ith ut th a llition f pr p r 

tran portati n hancllin,..; C'r ction ancl in tallati n char ·e:. 

R 1LE 12. \\ ithh llino· from r in. 'rtino· in an inv ic any . tai -

ment, which make- the invoi lt fab: r or l , wholly or in 1 art f 

th tran a tion repr . nt 1 n th fa e th rcof. 

RcLE 13. Th making of <.ny gua rantee again -t c1 f ct in mat rial or orkman ·hip for a 1 nO'er period than n y ar from 

inYoic lat . 

R LE 14. The ale or off rino- f r .-nl of any product of th \\ d-

"- rkino· ·Machinery In lu tr under any form of guarant to the 

purcha er or pr . p tive purcha er again t eith r a Ivane or I rot tion ao·ainst the lc line in t he 1 ric of , aiel product. 

R LE 15. I n all ca es of competiti\e bid lino- all bi l · . ubmitt d 

shall be the bona fi 1 final bi l of the bicld r and no hanO'e in 

th amount of the bi ls hall be made ~av onl tho c clue t chan 

in the plans and specifications or wh re equal opportunity to hanO'C 

bid i extended to all bidder ; and in such en e chanO'e in the 

amount of the bi l ·hall be made on the . amc unit or oth r ba i. as 

the ori aina l bi l. 

R LE 16. Tho sale or offer for sale of thr pro ln t of thi ub livi ion on term jnyolving a p riocl of trial that allow thr 1 urcha r 

the right to r je tor refu e acceptance of uch pro ln t f r any reason other than (1) failur of su ·h product to c mply with p cific 

guarantees of performance duly writt n in th purcha ' C ontra {, · 

and (2) refu al on the I art of th ell r or hi ag nt to mak goo l 

defects in mat rial or -workman hip of uch produ t. 

R LE 17. hippino· Home raft equipment on con. 1gnm nt exc pt 

under circum tan · to be defined by th ocl Authorit where 

peculiar circum, tance of the inclu try require the pra ti · · hipping 

in xce of quantit_ pecifi l in or ler · redating of or l r or the 

cancelling of an oriainal or ler an l the ub titution th r f r f a 

new order with a later Clate for th . ame merchandi e. 

RULE 1 . Ex hanging Hom raft quipment or n er ting 

quipment in r turn pr vided that thi hall not apr ly to ob 

home craft cquipm nt r equir mcnt whi h i d f ctiY in mat rial 

or workman ·hip. 

AnTI LE X- ALE FOR ExPORT 
15 

ARTICLE XI-J\1omFICATIONs 

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

from time to ti;me cancel or modify any order, approval, license, rule 

or regulation issued under Title I of the Act. 

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

Supplemental Code, proposed by Code Authority, and u.pproved by 

66%% of the employers who are cooperating in the administration 

of this Supplem.ental Code shall be in full force and effect upon approval by the Administrator. The eligibility requirements, 1nethod 

and effect of such voting shall be the same as provided by Article V. 

ARTICLE XII-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is not 

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

applied as to oppress or eliminate small enterprises or discrim.inate 

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

ARTICLE XIII-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on 

all persons engaged in the Subdivision on the eleventh day after its 

approval by the Administrator, and shall not be otherwise effective. 

Approved Code No. 347-Supplement No. 6. 

Registry No. 1399-31. 

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