Approved Code No. 347-Supplement No. 23 Registry No. 1614-01 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

CHEMICAL ENGINEERING 

EQUIPMENT INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

' " .. . 

AS APPROVED ON JULY 5, 1934 

- -· .-

----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superin tendent 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 Bureau of 

Foreign and Domestic Commerce. 

I 

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. : Cllamber 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. :1\lemphis, Tenn.: 229 Federal Building. 

1\'Iinnenpolis, Minn. : 213 F ederal Building. 

New Orleans, Ln.: Room. 225-A, Customhouse. Ne\v York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. Pittsburgh, Pa.: Chamber of Commer ce Building. 

Portland, Oreg.: 215 New Po t Office Building. 

St. Louis, Mo.: 506 Olive Street. San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash. : 809 F ederal Office Building. 
Approved Code No. 347-Supplement No. 23 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

CHEMICAL ENGINEERING EQUIPl\'IENT 

INDUSTRY 

As Approved on July 5, 1934 

ORDER 

SuPPLEl\IENTARY ConE OF F AIR CoMPETITION FOR THE CHEMICAL 

ENGINEERUW EQUIPl\!E~'T lKDUSTRY 

A DIVISION OF THE l\IA HIN ERY ND ALLIED PRODU TS INDUSTRY 

An application having been duly made pur uant t o and in full 

compliance with the provision of Title I of th National Indu trial 

Recovery Act, approved June 16, 1933, for appro' al of a Supplemental Code of Fair Competition for the hemical Engineering 

Equipment Subdivi ion of Machinery and Allied Products I ndustry, 

and hearings having been duly hell thereon and the annexed report 

on aiel Supplemental Code containing findings with resp ct thereto, 

having been made and directed to the President : 

NO\V, THEREFORE, on behalf of the Pre. iclent of the United 

States, I, Hugh S. Johnson, AdminL tl·ator for I ndustrial Recovery, pur uant to authority ve ted in me bv E xecutive Or lers of the President, including Executiv Or ler No. 6543-A, elated December 30, 

1933, and otherwi e · do hereby incorporate by reference sai l annexed 

report and do find that said Supplem€ntal Code complies in all 

respects with the pertinent proYision and will promote the policy 

and purpo es of said Title of aid Act; and do her by order that 

said Supplemental Code of Fair Competition be and it is hereby 

approved ubject to the con lition that Article XIV be and it hereby 

is deleted therefrom. 

Appro' al recommended: 

B ARTON \V. 11uRRAY, 

H GH S. J oHNSoN, A rbninish·wLm· fm· l n.dust?·ial R ecove1-y. 

Division A cbnin'istrator. 

1\T ASHIXGTON, D.C., 

J uly 5, 1934. 

721 05°---- 29-2 ~---- 4 {1) 
REPORT TO TliE PRESIDENT 

The PnESIDEN T, 

The White House. 

Sm : This is fi report on the Supplemental ode of Fair Competition for the Chemical Engineering Equipment Subdivision of 1\1a- chinery and Allied Products I ndustry, a Public Hearing on which 

was held in \Vashington, D.C., on April 27, 1934. The H a.ring was 

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

National Industrial Recovery Act. 

GENERAL ST.ATEl\1ENT 

Th·c Ch mical Engineering Equipment Subdivision, being truly 

r epresentative of the manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and sub- mit a Supplemental Code of Fair Competition as provided in 

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

Allied Products Industry, approved on the. twenty-eighth day of 

May, 1934. 

The Chemical Engineering Equipment Subdivision means the 

manufacture, design, engineering, erection, and/ or licensing of chemical engineering equipment, together with its accessories and necessary housing, for sale, and/ or the licensing of chemical engineering processes for use in connection with specified chemical engineering equipment, and shall be construed to include all persons 

engaged in such manufacture, design, engineering and/ or erection 

for ale and/ or such licensing; provided, however, that all specific 

equipment covered by other codes heretofore or hereafter approved 

under the Act is excluded to the extent of its coverage u 1der such 

codes. ~ 

ECONOMIC EFFECT 

This subdivi. ion hn · been severely aff.ccted by the rer·ent depression. This is evidenced by the steady decline in annual sales after 

1930, although it i worthy of note that sales increased from 

$19,864:,000 in 1929 to $21,462,000 in 1930, or 8.0 o. Ho\\"eYer, they 

declined thereafter to $4,400,000 in 1932, or 79.5 %. Sales f r the 

first eight month.· of 1933 amounted to $4,475,000. In 1929 this S ubdivision employed 3)243 person·, including office 

employees, which total declined to 1,698 in 1932, or 47.6% , increasing 

to 1,733, in 1933. No data are available on average hours of labor 

or average wage rates for the Subdivision. The effect of the wage 

and hour provisions of the Supplemental Code can notJ therefore, 

be determined. 

The wage provisions for the Subdivision, which is operating under 

the Code of the :Machinery and Allied Products Industry, provide 

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

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

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

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

• (2) 
3 

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

populaton, 38 cents per hour; (3) in cities of 10,000 population or 

less and their immediate vicinity, which cities are not in the immediate vicinity of 1a city of more than 10,000 population, 36 cents 

per hour, except that employees engaged in plant operations in all 

localities in the state.s of Virginia, North Carolina, South Carolina, 

Georgia, Florida, Tennessee, Alabama, Mis issippi, Arkansas, Louisiana, Texas, and Oklahoma, shall be paid not less than 32 cents per 

hour. 

''Vhen females do substantially the same work as males or replace 

males, they shall receive the same pay. However, no female mployee shall be paid less than 871j3 % of the proper rate for the locality in which employed. 

Office boys and girls and apprentices shall be paid not le s than 

80% of the minimum waga. 

Employees other than those engaged in plant operations shall 

receive not less than $15.00 per week. 

This Supplemental Code provides that no person under sixteen 

years of age shall be employed in this Subdivision. 

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 Cbde. 

Article III provides for the adoption of the employment provisions 

of the Code of Fair Competition for the Machinery and 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 Code of Fair Competition for the l\1achinery and 

Allied Products Industry in accordance with the conditions of this 

Article governing their adoption. 

Article V pro1ides for the e tablish::.nent of the Code Authority 

and defines its powers and duties. 

Article VI provides for registration of employers of the Subdivision. 

Article VII provides for an accounting system and methods of 

cost finding and/ or estimating. 

Article VIII provides for not selling below i'easonable cost when 

an emergency exist . 

Article IX provides for methods of setting up, revising, and filing 

price lists and eli count sheets and terms of sale and pay1nent. 

Article X sets forth trade practices for the Subdivision. 

Article XI contains provi ions governing pricing and marketing 

on sales for export. 

Article XII. This Supplemental Code and all the provi ions 

thereof are expres ly made subject to the right of the President in 

accordance with subsection (b) of Section 10 of the Act, from time 

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

regulation issued under said Act. Provision is also made that modifications may be submitted by the Code Authority to the Administrator for approval. 

Article XIII provides means for withdrawal of this Subdivision 

from the Basic Code and its continuance as an autonomous Code. 
4 

Article XIV provides for consent to changes, modifications, and 

amendments. (This Article is deleted by the Order approving this 

Supplemental Code). 

Article XV establishes that no provision 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 XVI tates the effective date of this Supplemental Code. 

FINDIXGS 

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 proce.edings 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 of labor 

and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the 

fullest possible utilization of the present productive capacity of industries, by 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 js 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 institute is an institute tr 1ly representative of the aforesaid Subdivision; and that said institute imposes no inequitable 

restrictions on admission to member hip therein. 

(d) The Supplemental Code i. not designed to and will not permit 

mon opolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not 

eliminate or oppress small enterpri es 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 pr.ior to approval of said 

Supplemental Code. 

For these reasons, therefore, I have approved this Supplen1ental 

Code, provided that Article XIV is deleted in the order. 

Respectfully, 

JULY 5, 1934. 

HuGH S. JoHNSON, 

Ad1ninistrator. 
SUPPLE~IENTARY CODE OF FAIR COMPETITION FOR 

THE CHEMICAL ENGINEERING EQUIP11ENT INDUSTRY 

A DIVISION OF THE 1\IACHINERY AND ALLIED PRODUCTS I :rDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are e tablishecl a a Supplemental Code for the Chemical Engineering Equipment Subdivision 

of the Machinery and Allied Products Indu try, and upon approval 

by the President this Supplemental Code taken together with the 

Code of Fair Competition for the Machinery and Allied Products 

Indu try, 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 Chemical Engineering Equipment In titute, a trade organization, all members of which are engaged in the 

Chemical Engineering Equipment Subdivision of the -Machinery and 

Allied Products Industr . 

"Industry" means the Thtlachinery and Allied Products Industry, 

as defined in its Code of Fair Competition a approved by the 

Pre ident, and a such definition may from time to time be amended. 

"Subdivision' means this Chemical Engineering Equipment Subdivision of the J\1achinery and Allied Products Industry a defined 

and set forth in Article II of the Code of the J\1achinery and Allied 

Prod nets Indus try (as amended 11a y 28, 1934) as follows : 

"Chemical Engineering Equipment Subdivision means the manufacture de ign, engineering, erection and/or licensing of chemical 

engineering equipment, together with its accessories and necessary 

housing, for sale, and/or the licensing Gf chemical engineering 

proce e for u e in connection with specified chemical engineering 

equipment, and shall be con trued to include all per ons engaged in 

such manufacture, design, engineering and/or erection for sale 

and/ or such licen ing; provided, however, that all spacific equipment 

covered by other codes heretofore or hereafter approv-ed under the 

Act is excluded to the extent o£ its co-verage under such codes." 

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

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

from time to time amended. 

"Person" means a natural p·erson, a corporation, a partnership, an 

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

other entity. 

{5) 
6 

"Employer " nnans any person engaged in the Subdivision either 

on hi · own behalf or a an employer of labor. 

"The Act" m an· Title I of theN ational Industrial Recovery Act. 

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

"The Administrator " means the Administrator for Industrial 

Recoycry. 

'• Basic Code Auth rity" means the Code Authority for the l\1achjnery and Allied Products Industry as constituted by the Code. 

" Code Authority " means the Code Authority constituted for this 

Subdi ·ision a provjded by the Code and by this Supplemental Code. 

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

or product cia ·sification within this Subdivision, constituted under 

the authority of the Code and of this Supplemental Code. 

ARTICLE III-EMPLOYMENT PROVISIONS 

The following Articles of the Code, viz.: Article III, "'Vorking 

I-I ours '; Article IV, " "T ages "; and Article V, " General Labor 

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

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

AnTICLE I\ -ADOPTION OF OTHER PnoviSIONS OF ConE 

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

and Article VI, ·:'Administration~', to the extent that they shall be 

applicable to thi Supplemental Code as such or as it may hereafter 

be admini. tered as an autonomous code; Article VIII, "Modifications and Termination"; and Article IX," Withdrawal", are hereby 

m::tde a part of this Supplemental Code with the same effect as if 

they were written into this Supplemental Code. 

AnTICLE V-AmviiNISTRATION 

(a) There shall forthwith be constituted a Code Authority consisting of (A) not more than twelYe (12') members of the Board of 

Directors of the Applicant and (B) not more than two (2) members 

chosen (in any manner approved by the Administrator) by those 

employers entitled to vote in this Subdivi. ~on not members of the 

Applicant, and (3) the Administrator may at his discretion appoint 

one additional member (without vote and without expense to the 

Subdivision). 

(b) Said Code Authority shall adopt subject to the approval of 

the Admini trator rules and regulations for the conduct of the code 

activities of the Subdivision not inconsistent with the provisions of 

the Code and of thi Supplemental Code. (c) \.ny employer in this Subdivision shall be eligible to memb r. hip in the Applicant. The Apphcant 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 nny amendments when made thereto, together with such other 

information as to membership, organization, and activities as the 

Administrator may deem necessary to effectuate the purposes of the 

Act. 
7 

(d) In order that thB Code Authority shall r..t all times be truly 

representative of th Sub livision and in other rospe ts comply with 

the proYision of the Act, the Administrator may pre cribe such 

heurina · a he may deem prop r; and thereafter if he shall find that 

the Cole Authority is not truly repres ntative or doe not in other 

re pects comply with the pr vi ions of th Act, may r quire an 

appropriate modification in the method f selection of the Code 

Authority. 

(e) Any employ r in this Sub 1iYision, b ' a epting hi pro-rata. 

share of the rea onable cost of creating ancl ( ln ini tering his Suppi mental o<.le as determined by the ode ....\..uthority and approved 

by the Admini trator, shall be entitled to v te on matters requiring 

the vot of employers and to c;:hare in the benefits of the activities 

of the ode uthority and participate in the preparation of any 

revi ions of or additions or sur pl ment to thi Supplemental Code. 

(f) Acti n by the em.ployers in the SubcliYi ion at any meeting 

for the transaction of bu iness an l uction on Code revisions shall be 

by vote of the employers entitled to vote as proYidecl in (e) above, 

present in per on or by proxy, in both of the following ways: 

(1) By vote of each employer. 

(2) By " te of each employer weighted on the l a is of on vote 

for each $75.00 or fraction th re f paid by said employer on account of as e "'ments levied under th provi ion of this Snpplemental Code during the twelYe (12) months preceding the lay of 

voting. Except as otherwi e provide l in the Code or in this Supplem'-'ntal 

Code, any action taken at any meetina of en.ployer hereundor shall 

be by majority Yote, cast and computed in each of the two ways 

hereinbefore proYidecl. 

(g) The Code Authority may appoint a Trade Practic Commit- tee which hall meet with the trade prG ctice com.mittees app inted 

under such other code as may be relatell to the Subdivision for the 

purpose of formulating fair trade practice to goYern the relationship between production and di tribution emplo} er. under this Code 

an l under uch other to the end that such fair trade practice_ may 

be proposed to the .. ' lmini trator a.~ amendment to this Code and 

such other codes. 

(h) If formul complaint i made to Code Authority, that provisions of this Supplemental Cole haYe been Yiolatecl by any employer, 

the Code Authority or the proper Group Code Auth rit}, may to the 

extent permitt-d by the Act, cause such inYestigation or audit to be 

made a may be deemed nece ary. If such inY" tigation is made 

by Group Code Authority it hall report the result of such inve tigation or audit to the Code Authority for action. 

ARTICLE VI-REGISTRATION OF E-;.\'I:PLOYERS OF THE SUBDIVISION 

The Code Authority shall exercise due diligence in notifying all 

employers engaged in the Subdivision of the approval of this Supplemental Code and shall invite all employers desiring to participate 

in the benefits hereof to ree:ister with it. Such registration shall 

include the full name and mailing acllress of the employer together 

with a list of his products in this Subdivision. The Code Authority 
8 

shall be under no obligation to notify any person not so registered 

with it of its actions or of any m"'eting of employers hereunder. 

ARTICLE VII-AccouNTING AND CosTING 

The Code Authority shall cause to be formulated methods o£ cost 

finding and/ or estimating capable of use by all employers of the 

Subclivi ion. After uch methods have been formulated, full details 

concerning them hall be made available to all employers. Thereafter all employers hall det rmine and/or estimate costs required 

by this Supplemental Code in accordance with the principles of such 

methods. 

ARTICLE VIII-SELLING BELow REASONABLE CosT 

\Vhen the Code Authority determines that an emergency exists 

in this Subdivision and that the cause thereof is destructive pricecutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Supplemental Code, the Code Authority may cau e to be determined the lowest reasonable cost of 

the products of this Subdivision, such determination to be subject 

to such notice and hearing as the Administrator may require. The 

Administrator may approve, disapprove or modify the determination. Thereafter, during the period of the emergency, it shall be 

and unfair trade practice for any employer of the Subdivision to 

sell or offer to sell any products of the Subdivision for which the 

lo\\e t 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 rea onable co t 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 a use the determination to be reviewed. 

ARTICLE IX-PRICE LISTS 

(a) I f and when the Code Authority 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 printed net price 

lists, or price lists with discount sheets, and terms of sale and payment, specified therein, each manufacturer of such product shall, 

withi;.1 ten (10) days after notice of such 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 eli counts, and terms of sale and payment, and 

the Code Auth~rity shall immediately publish (make available to 

all interested parties) at the office of Code Authority and send copies 

thereof to all manufacturers of such specified product registered 

with Code Authority in accordance with Article VI hereof and who 

shall have supplied such price li t of his own products. 

Revised price lists and/ or discount sheets and/or all other conditions of ale may be filed from time to time thereafter with the Code 

Authority by any manufacturer of such product, to become effective 

on the date of uch filing. Copies of such revised price lists and/or 

discount sheets and/ or all other conditions of sale shall be immedi-
9 

ately published (made available to all interested parties) at the office 

of the Code Authority and sent to all manufacturers of such product, registered \i'ith Code Anthority in accordance with Article VI 

hereof and who are cooperating in this Supplemental CocL. (b) If and when the Code Authority shall determine that in any 

branch or group of the &ubdivision not no"Yv selling its product on 

the basis of pric-e lists, with or -n·ithout discount sheets. -n·ith terms 

of sale and payment specified therein, the distriLution or marketing 

conditions in said branch or group of the SubcliYision are the same 

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

branch or group of the Subdi,jsion where the use of price lists. with 

or without discount sheets, 3.nd other specified conditions of sale is 

well recognized, and that the use o£ price lists. with or without discount sheets, with other specified conditions of sale should be pnt 

into effect in such branch or group of the Subdivision. then each 

manufacturer of the proclnet or products of such b:ranch or group of 

the SubdiYision shall, within t-~Yenty (20) clays after notice of such 

determination, file with the Code Authority net pricE> lists or pric 

lists and discount sheets. containing all other specified conditions of 

sale, and such pric~ lists and/ or discount sheets and/ or other specified 

conditions of sale may be thereafter reYisecl in the manner herein -

above pro\ided; provided, lwu·ever, that the Code Authority hall 

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

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

paragraph (b) of Article IX, unless two-thirds of the employers who 

are at that time engaged in manufacturing such product, an<.l \\'h 

are entitled to Yote as aboYe proYided, shall affirmati-n~ly consent 

that such determination be made. 

(c) For the purpose of gathering statisticn.l dn ta for the determination or re\ision of a lowest rea~onable co::3t under article VIII, th 

Code Authority shall ha\e pmver, on its own initiative, or on the 

request o£ any employer, to cause to be inYestigated to the extent permitted by the Act, any price or the terms of sale and payment for 

any product shown in any price list n.ndj or discount sheet filed with 

the Code Authority by any employer; and for the purpose cf the 

investigation thereof, to r-equire, to the e.::::tent permitted by the _-\ct, 

such employer to furnish to an impartial agency such inform-ation 

concerning the cost of manufacturing and selling such product ns 

the Code Authority shall de~~n1 necessnry or proper for such purpo::.e. 

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

whatsoe\er. any product. of th8 Subc1i,ision coYered by proYisions 

of this Article I:X_ at a price or at discounts or on other conditions of 

sale different from those proYidec1 in his own current net price lists, 

or price lists and discount sheets. 

(e) Each employer shall prepare and furnish the Code Authority 

with such number of copies of his pr1ce lists ancljor discount sheets 

as Code Authority may require for administration and distribution. 

ARTICLE X - Tr.ADE PRACTICE 

(1) Cost of Delil:e'i'y.-No employer· shall sell equipment coYerecl 

by this Supplemental Code at a delivered price unless such deliYer-2d 

pr~ce shall include the cost of delivery in addition to the f.o.b. factory 

pnce. 
10 

(2) Te1"m8 of Payment.-No employer shall sell equipment covered 

by this Supplemental Code on terms of payment more liberal than: 

(a) Five ( 5%) percent cash discount for payment in full with 

order. 

(b) Two (2%) percent cash discount for payment in full within 

ten (10) r!ays from date of invoice, which date shall be the shipping 

date; JJrovided that on recurring orders for spare parts and accessories or supplie two (2%) percent cash discount may be allowed 

for payment on or before the tenth (lOth) day of any month of 

all invoices for the preceding month. 

(c) Net amount without cash discount for payment in full within 

thirty (30) day from the date of the invoice, which date shall be 

the shipping date, provided, that the buyer may be allowed to retain 

not more than fifteen ( 15% ) percent of the invoice price for not to 

exceed ninety (90) days from the invoice date to allow for inspection and/ or operating tests of the equipment. 

(d) Deferred terms covered by Conditional Sales Contra_ct or 

Bailment Lease extending for not more than one year. In such 

cases interest on unpaid balances shall be charged to the buyer at 

not le s than six (6% ) percent per annum unless the . tate laws 

governing the contract provide a lower maximum legal rate; provided, however, that no employer shall pay any charges for financing 

such Conditional Sales Contracts or Bailment Leases. 

P1·ovided, hotvever, that nothing in this Section 2 of Article X 

shall apply to terms for the sale of complete operating units, either 

on an erected basis or on the basis of furnishing equipment and/or 

materials plus engineering supervision. 

(3) Installation Service.-N o employer shall furnish services for 

the installation of equipment unless such services are charged separately to the buyer, such charge to be not less than the estimated 

or actual expense of such services ; provided, however, that when an 

employer's published price list clearly indicates that certain installation service is included in the r egular sales price of equipment so 

published, the services so indicated may be furnished on the basis 

published; provided, further, that nothing in this Section ( 3) shall 

apply to cases where equipment or complete operating units shall 

be sold, either on an erected basis or on a basis of furnishing materials plus engineering supervision. 

( 4) 0 hang es in and 0 an cell ations of 0 ontracts .-(a) No employer shall accept responsibility for errors in blueprints and/or 

specification furnished by the buyer nor assume the cost of correcting 

said errors. 

(b) No employer shall furnish special production services to give 

unusual lelivery not contemplated at the time of sale without 

rec"'iving the cost thereof from the buyer. 

(c) A change in cost to employer of any alteration in an accepted 

order or contract, made at buyer's written request, shall be charged 

or credited to buyer as the case may be. 

(5) E xperi?nental Work and Engineering Services.-(a) Code 

Authority, with the approval of the Admini. trator may from time 

to time limit the amounts of experimental work and/or engineering 

service which may be furnished gratis to the buyer, actual or prospective, by employers in the Subdivision. As and when such limit 
11 

or limi ar~ established, Code Authorit}' shall forn1ulate a basis 

for charcre , ubject to approYal by the Administrator, for all such 

experimental work and/ or eno·ineering ervice furni heel in e.xce ... s 

of the limit or limit o determin d. 

(b) No empl -er hall aoTeC to maintain, or s I'Yice at les than 

actual expen l equipment after installation an l acceptance of ame 

by the buyer· z;rovidcd however, that any employer may replace 

any part or parts foun·l to be of defectiv material or workmanship. 

(6) R sponsibilities of E'mploycrs.-(a) ,o employer shall assume 

the cost of or lo s cau d by work undertake 1 by any buyer on such 

buyer own r e ponsibility. 

(b) o employer shall as ume the co t of lo s or damag to buyer's 

pattern , engineering data, equipment and/ or lrawings by fire or 

other ca ualtie beyond the control of such employer. (7) A1·bitration.-N o employer shall accept as the sole arbitrator 

of a contract for equipment or service with any buy r any person 

employed or retained directly or indirectly by aid buyer. 

(8) Unfai?· Practices.-Euch of the following acts and practices is 

deemed to be inimical to the best interests of the Subdivision, and 

of the public, and each is, therefore, hereby declared to be, and to 

con titute, an unfair method of competition, and is hereby prohibited viz.: 

(a) Giving permitting to he criv n or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee, agent, or representative of another in relation to the busine s of the employer of such employee, the principal 

of such agent, or the repres nted party, without the knowledge of 

such employer, principal, or party. This commercial bribery provision shall not be construed to prohibit free and general distribution 

of articles com1nonly usocl for ad,-ertising except o far as such articles are actually used :for commercial bribery as hereinbefore defined. 

(b) Any discrimination between purchasers of the same cla s by 

the sale of any tandardized article having a publi~hed price at any 

price different from the seller's published price by means of direct 

or indirect price concessions, or by mean of any pri\ilege not 

ex{-ended to all plll chasers of the ame cla . 

(c) Untruthfully adYertising, representing, or marking any product with intent to deceive or mislead prospecti-ve purchasers. 

(d) Intentionallv procuring otherwise than with the con ent of 

an employer under this Supplemental Code, any information concerning the bu iness of such e1111 loyer which i his trade seer t, or 

which is ordinarily considered confidential in a going business. 

(e) l{nowino·l. to ubmit a quotation to a pro pectiYe customer 

ba eel on original drawing de icrns and/ or pecifications prepared 

by another employer without aid employer's written permi ion. 

(f) Di_ eminating, publishino·, or circulating any fal ~e or rr~isleading information relative to any product or price for any product 

of any employer or the credit standing or ability of any employer 

to perform any \York or manufacture or produce any product, or to 

the conditions of employment within the organization o:f any 

employer. 

(g) Inducing or attempting to induce by any means any party 

to an existing cmnmercial contract with an employer to violate such 

contract. 
12 

(h) Simulating in any printed matter any emblem, device, mark 

or brand, or the distinctive style of any advertising matter or catalog 

originated by any other employer, for the purpose or with the effect 

of misleading customers or prospective customers. . (i) Directly or indirectly tampering with or misadjusting an em- ployer's pro luct for the purpose of discrediting such employer with 

a customer. 

(j) Furnishing equipment to a customer for trial purposes after 

one succe. sful commercial installation has been placed in operation 

and accepted by a purchaser, without a definite order and an advance 

agreement that if the equipment be returned, the customer will pay 

the cost of transportation to the original shipping point and the cost 

of reconditioning. 

(k) Indulging in destructive price cutting. 

ARTICLE XI- SALES FOR ExPORT 

The provisions of this Supplemental Code concerning pricing and 

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

similar exemption may be granted by the Code Authority as to sales 

of any product destined ultimately for export. The term "export" 

shall include all shipments to all places without the several states 

of the United States and the District of Columbia; provided', howeve?', that no shipment to any territory or possession of the United 

States shall be considered an export when any employer is engaged 

in the Subdivision in such territory or possession. 

ARTICLE XII-l\1omFICATIONs AND TERMINATION 

(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 the Subdivision will be continued by Code Authority, with the intention of submitting, from 

time to tim·e, after its effective elate, additions to, or revisions of, or 

supplements to, this Supplemental Code. 

(c) Any such amendments, additions, revisions, or supplements 

of this Supplemental Code approved by a 66%% vote of the em- ployers cooperating under this Supplemental Code, shall be in full 

force and effect upon approval by the President. The method, 

manner, and effect of such voting shall be the same as provided by 

Article V. 

(d) This Supplemental Code shall terminate June 16, 1935, or 

upon such elate prior thereto when the Act shall be repealed or the 

President shall, by proclamation, or the Congress shall, by joint resolution, direct that the emergency recognized by Section 1 of the Act 

has ended. 

ARTICLE XIII-WITHDRAWAL 

As is provided by Article IX of the Code, upon thirty (30) days' 

notice to Basic Code Authority and to the Administrator, this Subdivision may, upon the concurring affirmative vote of employers 

within this Subdivision entitled to cast two-thirds or more of all the 
13 

votes that might be cast by all employer within the Subcli vision 

entitled to vote thereon . .., ... ~ithdra\v from the jurisdiction of Basic 

Code Authority. The eligibility of voters and the method and effect 

of such voting shall be in accordance wi h the proYision. of Sections 

(e) and (f) of Arti le V hereof. Thereafter this Supplemental Cede, 

too-ether with the provi ions of the Cod except ·uch portion of 

Articles I, II VI and VII a arc not pertinent thereto as cleter- mined by the Cod Authority and the Aclmini h·ator, shall become 

the code o·overning this former Subdivi. ion and its Co 1e Authority 

shall become and be the sole Code Authorit:) and shall porform all 

the functions thereof with resr:.,.ect to such Code. 

ARTICLE XI\ -C NSENT TO CnANGE~, JHomFI '.\..TION AND 

AnrEND~IENTS 

By presenting this Supplemental Code and acceptino· the provisions of the Code of which it is a upplement, tho c employer who 

assent hereto shall not be de€mec1 to haYe consented to any changes, 

1nodification , and amendment thereof, except as ea h ~ha ll thereto 

sub equently agree.1 

ARTICLE XV-:MoNor LIES 

Applicant imposes and shall impose no inequitable restriction on 

n1ember hip therein. The Supplemental Code pre ented by it is 

not desio·ne l to promote monopoly, and shall not be so con true l or 

applied as to oppr"s or eliminate small ent rpri es or di~criminate 

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

ARTI" LE XVI-EFFECTIVE D TE 

This Supplemental Code hall become effectiYe and binding on 

the eleventh day after its approval. 

Appro>ed Code No. 3-!7-Supplement N . 23. 

Regi try No. 161 J---01. 

1 Deleted-See paragraph 2 of order appro>ing this Code. 

0 
UNIVERSITY OF FLORIDA 

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