Approved Code No. 347-Supplement No. 19 Regisft'y No. 1312-04 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

HOISTING ENGINE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 12, 1934 

WE DO OUR PART 

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U.I. DIPOIITOII¥ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I 

I I I~ I 

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For sale by the Superintendent of Documents, Washiniton, 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. 

DISTRICT OFFICES OF THE DEPARTMENT 01•' 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 Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 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. 19 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HOISTING ENGINE MANUFACTURING I~I)USTRY 

As Approved on June 12, 1934 

ORDER 

SUPPLEMENTARY CoDE OF F Arn CoMPETITION FOR THE HornTrxa ENGINE 

MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

and hearings having been duly held thereon and the annexed report 

on said Supplemental Code containing findings with respect thereto, 

having been made and directed to the President: 

NOvV, THEREFORE, on behalf of the President of the United 

States, I , Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed 

report and do find that said Supplemental Code complies in all 

respects with the pertinent provisions and will promote the policy and 

purposes of said Title of said Act; and do hereby order that said 

Supplemental Code of Fair Competition be and it is hereby approved 

subject to the condition 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 irr 

the Supplemental Code) and the effective date of price lists, as 

originally filed and/ or revised price lists or revised terms and conditions of sale, be and they hereby are stayed pending my further 

order. 

HuoH S. JoHNso~, 

Administrator for I nditstrial R ecovery. 

Approval recommended: 

A. R. GLANCY, 

Division Ad1ninistrator. 

WASHINGTON, D. c., 

June 11£, 1934. 

67074°-657-103-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Supplemental Code of Fair Competition for the Hoisting Engine Manufacturing Subdivision of the 

Machinery and Allied Products Industry public hearing having 

been conducted thereon in Washington, D.C., December 8, 1933, and 

reconvened December 21, 1933, in accordance with the provisions of 

Title I of the National Industrial Recovery Act. Every person 

who filed a request for an appearance was freely heard in public 

and all statutory and regulatory requirements were complied with. 

GENERAL STATEMENT 

The Hoisting Engine Manufacturers Association, being truly 

representative of this Subdivision of the Machinery and Allied Products Industry, has elected to avail itself of the option of submitting 

a Supplemental Code of Fair Competition, as provided in paragraph 

(2) , Article I of the Basic Code for the ~1achinery and Allied Products Industry approved by you on the seventeenth day of March, 

1934. 

This Subdivision represents a part of the capital goods industry, 

manufacturing and selling power-operated hoisting and winding engines such as are used in construct10n work, sand and gravel opera- tions, logging and dredging and special modifications thereof, including ar~essory equipment used therewith such as derricks, whirlers 

and cableways, and spare, repair and replacement parts thereof, but 

not including the type commonly known as mine hoists. 

ECONOMIC EFFECT 

No estimate of the total employment is available, but it has been 

assumed that the trend reflected by summarized questionnaire returns 

from fourteen establishments is representative of the rate of decline 

in employment for this Subdivision of the Industry as a whole. 

This subdivision of the Industry is still suffering from the e:ff cts 

of the depression. Annual sales decreased approximately 82 per cent 

and employment approximately 63 per cent from 1929 to 1932. Approximately 50 per cent of the employees in June, 1933, were 

working more than 40 hours per week and 14 per cent were receiving 

less than 40 cents per hour with the minimum wage ranging between 

25 and 30 cents. From th statistics available, the average work-week in 1929 

amounted to 52.2 hours, decrea ino- to an average of 35.4 hours per 

week for the first six months of 1933. 

(2) 
3 

The m1n1mum hourly rates in the approved Basic Code consist 

of one differential :for the South and three city population differentials :for all other sections o:f the United States, as :follows: 

Over 50,000 population _____________________________ 40¢ per h our 

Over 10,000-50,000 population ______________________ 38¢ per hour 

10,000 population and under_ _______________________ 36¢ per hour 

South _____________________________________________ 3~¢ per hour 

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

Code provides that women engaged in substantially the same work 

as men shall receive the same rate o:f pay as such men employees; 

that the minimum wage :for women employees engaged in plant 

operations shall be not less than 87.5 per cent o:f the proper rate for 

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

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

Based on the distribution as o:f June 15, 1933, and on the specified 

percentages o:f the number of workers receiving less than the designated rates as shown in the table below, the adopt:on of the proposed 

minimum rates will probably cause an increase in :factory payrolls. 

The estimated increase as of June 15, 1933, regardless of location 

of the workers, will probably, under the most taYorable conditions, 

not exceed 1.5 per cent assmnjng only upward adjustment in the 

brackets below the 40 cent minimum and no change in man-hour 

requirements. 

Estimated number of factory warkers receiving less than desig1'1!ut·ed hourly rates 

Minimum hourly rates 

40 cents (other U.S.) .. __________ . ________ ... ________________ . ___ ........... . 38 cents (other U.S.). __ . ________ .. ____ ...... _________ . ___ .... _ .. ____ ....... . 36 cents (other U.S.)_. ____________ . _______________________________ . ___ . __ . __ 

32 cents (South) ..... ________ .. __ .... ______ . ___ .. ______ .. ___ ..... ___ ..... ___ _ 

Distribution of factory workers receiving less 

than the minimum re- gardless of location 

Approximate Approximate 

percent number 

14.0 

10.8 

7.6 

3.8 

59 

45 

32 

16 

RESUME OF THE SUPPLE1\1ENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms employed in this Supplemental Code. 

Article III. The labor provisions of the Basic Code for the Machinery and Allied Products Industry as approved March 17, 193'-!, 

are incorporated by reference as the labor provisions of this Supplemental Code. 

Article IV adopts the relevant portions o:f Article VI, "Administration"; and Articles VIII, "Modifications and Termination", and 

IX, ",vithdrawal" of the Basic Code for the Machinery and Allied 

Products Industry, as approved March 17, 193·4. 

Article V establishes a Code Authority consisting of four mern bers. 

One additional member may be elected :from the nonmembers of the 

applicant association if so desired by such nonmembers. The Ad-
4 

mini trator in his di cretion may appoint one additional member 

( ithout vo and with ut expen to the Subdivision). Together 

with the applicable provi ions of the Ba ic Code, mechanism is 

provid d for the admini tration of this upplemental Code. 

rti le I provide for an accounting ystem and methods of 

co t finding and for e timating. 

rticle VII provide for the determination of a lowest reasonable 

co t during an emergency cause :I. by destructive price-cutting and 

provides exceptions thereto as regards distress stocks and on products 

of similar d ign and imports. 

Article VIII provides for methods of settinO' up revising and 

filing price lists and discount sheets and terms of sale and payment . ... t\..rticle IX provides certain standards as to vrices, terms and condition of payn1ent, peculiar to this Subdivision, with a view of 

eliminating unfair competition in this Subdivision. 

Article X sets forth the unfair trade practices which have been 

especially designed to effect fair competition in this Subdivision. 

Article XI defines export territory and provides that filed price 

lists are not applicable to export shipments. 

Article XII contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for the submission of pro- posed amendments to the Supplemental Code. 

Article XIII provides for the withdrawal of this Subdivision from 

jurisdiction of the Basic Code and for the continued functioning of 

this Subdivision as an individual industry under its own code. 

Article XIV stipulates that there shall be no inequitable restrictions and provides against monopolies. Article XV gives the effective date of this Supplemental Code. 

FINDINGS 

The Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis 

of all the proceedings in this matter : 

I find that: 

(a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act.., 

including removal of obstructions to the free flow of interstate and 

foreign commerce which tend to diminish the amount thereof and 

will provide for the general welfare by promoting the organization 

of industry for the purpose of cooperative action among the trade 

groups by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision by 

eliminatinO' unfair competitive practices, by promoting the fullest 

po sible utilization of the pre ent productiv capacity of industrie , by avoiding undue restriction of production ( except as may be temporarily required) by increasing the consumption of industrial and 

agricultural products through increasing purcha ing power, by reducino- and relieving unemployment, by impro, ing standards of 

labor, and b otherwi e rehabilitating indu try. 

(b) aid ubdivision normally employ not more than 50,000 em- ployees, and is not cla sified by me as a n1ajor industry. 
5 

(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 of the industry; and that said association imposes no inequitable restrictions on admission to membership 

therein. 

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

monopolies or monopolistic practices. 

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

against them. 

(f) Those engaged in other steps of the economic process have not 

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

Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, provided that certain provisions relating to price publication 

are stayed as stated in the order. . 

Respectfully, 

JUNE 12, 1934. 

HUGI-Is. JOHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FA.IR COMPETITION FOR 

THE HOIST! GE GI E MANUFACTURING INDUSTRY 

A DIVISIO OF THE M.ACIDNERY .A D ALLIED PRODUCTS INDUSTRY J 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the ational Industrial Re- covery Act, the following provisions are established as a Supplemental Code for the Hoisting Engine :Manufacturing Subdivision of 

the Machinery and Allied Products Industry, and together with the 

Code of Fair Competition of Machinery and Allied Products Indu try shall be the tandard of fair competition for this subdivision, 

and shall be bi1:ding on every employer therein. 

ARTICLE II-DEFINITIONS 

" pplicant" means the Hoisting Engine :Manufacturers Association, a trade organization which organization is truly representati e 

of this subdivision, all members of which are engaged in the manufacture for sale of the products of the Hoisting Engine Manufacturing Subdivision of the Machinery and Allied Products Industry. 

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

as defined in its National Industrial Recovery Code as approved by 

the Pre ident, and as such definition may from time to time be 

amended. 

"Subdivision" means this Hoisting Engine J\1anufacturers subdivision of the J\1achinery and Allied Products Industry as defined 

and set forth in Paragraph fourteen of Article II of the National 

Industrial Recovery Code of the Machinery and Allied Products 

Industry as follows : 

Hoisting Enrrine J\tiannfacturing Subdivision means the 1nanufacture for sale of power-operated hoi ting or winding engines such as 

are used in construction work, san l and gra, el operations, loggino-, i:tnd dredo-ino-, and special modifications ther of including acce ory 

equipment used therewith such as derricks whirlers, and cable ays, 

and spare, r pair and replacement parts thereof, but not including 

the type c mmonly known as mine hoists, and includes all tho en- o-aged in uch manufacture for sale. 

The forerroing Definition shall not permit the manufacture for 

ale under this Suppl m ntal ode of electrical products included 

within the cope of th Electrical Manufacturino- Industry as defin· d in the ode of Fair ompetition for said Indu try except 

wh re u h el ctrical products are old a a part of the products 

of thi ub livision and are not old a parate electrical products 

in com_petitjon with imilar pro lu ts inclu led within the cope of the 

Electncal Manufacturino- In 1u try as defined in the Code of Fair 

(6) 
7 

Competition for said industry; provided, however, that any employer hereunder may manufacture and sell under this Supplemental 

Code any spare and/or replacement parts of any such electrical' 

products for use with products defined hereunder, which were 

originally manufactured and sold by him. 

When carried on at the point of installation, the work of installing, erecting, rebuilding and/or servicing of the products of the 

Subdivision, (including attachments, accessories and/ or replacement 

and repair parts therefor, included within the definition of the 

Subdivision) shall be subject to the provisions of this Supplemental 

Code, only when perform.ed by the employer hereunder selling such 

products or by a company affiliated therewith. 

" Code " means the National Industrial Recovery Code of the 

Machinery and Allied Products Industry, as approved by the President, ~larch 17, 1934, and as from time to time amended. 

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

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

or other entity. 

"Employer" means any person engaged in the Subdivision either 

on his own behalf or as an employer of labor. 

"Employee" means any one who is employed in the subdivision 

by any such employer. 

"The Act" means Title I o:£ the National Industrial Recovery 

Act. 

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

" The Administrator " means the Adn1inistrator for Industrial 

·Recovery. 

"Basic Code Authority" means the Code Authority for the Machinery and Allied Products Industry as constituted by the Code. 

"Code Authority" means the Code Authority constituted for 

this Subdivision as _ _provided by the Code and by this Supplemental 

Code. 

" Group Code Authority " means the Code Authority for any 

group or product classification within this Subdivision. 

"Publish" means to make available to the public. 

"New Products" shall mean a machine or attachment which has 

not previously been sold and placed in the possession of a purchaser, 

nor rented or used as a demonstrator prior to the approval of this 

Supplemental Code. 

ARTICLE III-EMPLOYl\1:ENT PROVISIONS 

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

Hours " ; Article IV, " Wages "; 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. 

ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE 

The following Articles of the Code, viz; Article VI, ·"Administration", to the extent that it shall be applicable to the administration 

of this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; Article VIII, " Modifications 
8 

and T rmination "; and Article IX "Withdrawal", are hereby 

adopted and made a part of this Supplemental Code with the same 

effect as if they were written into this Supplemental Code. 

ARTIOLE V-ADMINISTRATION 

(a) The Code Authority for this Sub di vision shall consist of : 

(1) The Executive Committee of Applicant, consisting of four 

members. 

(2) One additional member may be elected in any fair manner 

with the approval of the Administrator, by cooperating employers 

in this Subdivision not members of the Applicant, if so desired by 

such non-members. 

(3) The Administrator, in his discretion, may appoint one additional member ( without vote and without expense to the 

Subdivision.) 

Any vacancy on the Code Authority due to death, resignation or 

because a member thereof has ceased to be connected with this Subdivision shall be filled at a meeting of employers called by the Gode 

Authority on at least ten days' notice by registered mail sent to all 

employers in this Subdivision, and in a manner similar to the manner 

in which the retired member was originally selected. 

(b) Any employer in this Subdivision shall be eligible for membership in Applicant. 

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

representative of the Subdivision and in other respects comply with 

the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the 

Code Authority is not truly representative or does not in other 

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

appropriate modification in the method of selection of the Code 

Authority, or any Group Code Authority. 

Action by employers in any Subdivision meeting for the adoption 

of procedural rules, revisions or additions to this Supplemental 

Code, or the transaction of other business of the Subdivision shall be 

by vote of employers entitled to vote as provided in this Article V, 

who are present in person or by proxy duly executed and filed with 

Code Authority. Any such action taken at any meeting of employers shall be by majority vote cast and computed on the basis of 

one vote for each employer, unless otherwise provided in this Supplemental Code. 

(d) Any employer in this Subdivision shall be entitled to vote at 

the election of (subject to Section (a) hereof) and share in the 

benefits of the activities of the Code Authority and may participate 

in any endeavors of the Code Authority in the Rreparation of any 

revisions of, or additions or supplements to this upplemental Code 

by payino- hi proper pro-rata share of the reasonable cost of admini - terino- it, as determin d by the Code Authority. 

(e) If formal complaint is made to Code Authority, that provisions of this upplemental Code have been violated by any employer, 

the Code Authority may, to the extent permitted by the Act, cause 

such investigation or audit to be made, as may be deemed necessary. 
9 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority shall cause to be formulated an accounting 

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

use by all employers in the Subdivision. After such system and 

methods have been formulated, full details concerning them shall be 

made available to all employers. Thereafter all employers shall 

determine and/or estimate costs in accordance with the principles of 

such methods. 

AnTICLE VII- SELLING BELOW REASONABLE CosT 

(a) When 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 cause to be determined the lowest reasonable cost of the products of this Subdivision, such determination to be subject to such 

notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determination. 

Thereafter, during the period of the emergency, it shall be an unfair 

trade practice for any employer of the Subdivision to sell or offer 

to sell any product of the Subdivision for which the lowest reasonable 

cost has been determined, at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than the lowest 

reasonable cost of such products. 

When it appears that conditions have changed, the Code Authority, 

upon its own initiative or upon the request of any interested party, 

shall cause the determination to be reviewed. 

(b) The foregoing Section (a) shall not apply to (1) dropped 

lines, or (a) seconds, or (3) inventories which must be converted 

into cash to meet emergency needs, all of which may be disposed of 

by any employer at any price and on any terms or conditions, but 

only if such employer, not less than two weeks before such proposed 

disposal has filed with Code Authority a statement in writing 

setting forth the facts of, and reasons for, such proposed disposal 

and the price and terms and conditions of sale, and Code Authority · 

has not, with the approval of the Administrator, before the termination of such two week period, in wFiting, disapproved the proposed 

disposal. Notice of such disposal, if not disapproved, shall be sent 

immediately to all employers manufacturing products of equivalent 

design, character, quality or specifications, and participating in this 

Supplemental Code as described in Article V, Section ( d), who may 

sell such products at prices and on terms and conditions as favorable as those sti_pulated in the proposed disposal. 

( c) When prices of competing products manufactured outside the 

United States are lower than the established lowest reasonable cost, 

any employer may sell at prices and on terms and conditions as 

favorable as those of the competing foreign product. 
10 

ARTI LE VIII-PRICE Lr TS 

(a) If an l wh n he o le uthority determines that in any group 

of the ubdivi ion it has be n th generally r cognized practice to 

ell a p ifie l pro luct on the ba is of printed net price li , or 

pric li t · with <l1 count . heet an<l. fixed terms of ale and paym nt, ea h emplo r shall, within ten days after notice of such 

d termination, file with the C de Authority a net price Ii t, or a 

price list with li ount sheet, as the case may be, indi i<l.nally prepared by him, howing his current price ,~ or prices and 1i counts, 

hipping weight , and terms of sale, and payment an the Cocle 

uthority hall immediately publish and send copies thereof to all 

employers who are cooperating under this Supplemental ode. 

ReYised price Ii ts and discount sheets and terms of sale and 

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

Authority by any manufacturer of such product, to become operative 

upon the date specified therein, b'1t such revised price Ii ts and discount sheets and terms of sale and payment shall be filed with the 

Code Authority not less than ten clays in advance of the effective 

date. Copies thereof, with notice of the effective date specified, shall 

be immediately published and sent to all known manufacturers of 

such product, who are cooperating under this Supplemental Code, 

any of whom may file, if he so desires, revisions of his price lists and 

discount sheets and terms of sale and payment, which shall become ·effective upon the date when the revised price list and discount sheets 

and terms of sale and payment first filed shall go into effect. 1 

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

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

of price lists, with or without discount sheets, with fixed terms of 

sale and payment, the distribution or marketing conditions in the 

group are the same as, or similar to, the distribution or marketing 

conditions in a group where the use of price lists, with or without 

discount sheets, and fixed terms of sale and payment is well recognized and that a system of selling on net price lists or price lists 

and discount sheets with fixed terms of sale and payment should be 

put into effect in such group, then each manufacturer of the product 

or products of such group shall within twenty days after notice of 

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

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

showing his current prices and discounts and terms of sale and pay• 

ment, and such price lists and discount sheets and t rms of ale 

and payment may be thereafter revised in the manner her inbefore 

provided. Provided that Code Authority shall make no determination, to place any product of the Subdivision (not now on a price 

list basis) on a price list basis, as provided in this paragraph (b) of 

Article VIII unless affirmative consent to such determination is 

given by a 66o/3 % vote of employers who are cooperating under this 

Sul,)plemental Code and who are at that time ngaged 1n manufac• 

tunng such pro<lu ts. 

( c) o employer shall sell directly or indirectly by any means 

whatsoever, any product of the ubdivision covered by provisions 

1 See paragrapb 2 of order approving this ode. 
11 

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

and payment different from those provided in his own current net 

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

payment. 

ARTICLE IX-PRICES, TERMS AND CONDITIONS OF p A YMENT 

(a) Any place at which a manufacturing plant producing a product of this Subdivision is established may be used as a place from 

which the freight shall be added to the filed price of the product, 

provided that the employer specifies such place or places in his 

published price list. All prices and quotations made by an employer 

shall be F.O.B. such specified place or places. 

(b) New machines or attachments shall be sold only under firm 

sales contracts or firm purchase orders, and such contracts or orders 

shall provide for shipment within six months of the date the contract or order is signed by the purchaser. 

( c) When sales of a new product are made on a net cash basis, and 

no cash discount is involved, the contract of sale shall provide that 

full payment in cash or negotiable check be made by purchaser 

within thirty days from the date of shipment. When, however, :full 

payment is made within ten days from date o:f shipment, a cash discount of not to exceed five percent (5%) of the F.O.B. price may be 

allowed. 

( d) In the case o:f sale o:f a new product to an ultimate consumer 

on deferred payment terms, a cash payment of not less than twenty-

.five percent of the total sales price must be required, and the unpaid 

balance of the purchase price shall be made payable in equal monthly 

installments, the first installment to be payable in not more than 

thirty days, and the last installment to be payable in not more than 

nine months :from the date o:f shipment. All installments shall be 

evidenced by notes bearing date of the day o:f shipment, and drawing interest at not less than six percent per annum therefrom unless 

the laws of the particular State governing the contract stipulate 

otherwise as to interest rate chargeable. 

( e) All contracts for the sale of a new product shall require the 

payment in lawful money o:f the :full current price of such product. 

( :f) In the sale o:f a new product, no exp reps guaranty of materials 

and workmanship shall be made to be effective beyond twelve months 

a:fter date o:f shipment. 

(g) Employer's guarantee of performance for any machine shall 

be limited to an agreement to duplicate performance claimed in his 

published literature using uniform methods for testing prescribed 

by the Code Authority and approved by the Administrator. No sale 

o:f a new product shall be made subject to acceptance after a trial 

or demonstration on the purchaser's job, except that in the case of the 

first new product of any distinctly new type or size, with new model 

designation, if no product o:f the same type and size has previously 

been sold, or in any case where a product may be sold to be employed 

:for a distinctly recognized new use, any employer may include in 

the contract o:f sale a provision permitting rescission of the contract 

by the customer within ninety (90) days :from date of shipment. 
(h) 

bh i. 

12 

o cm11 y r hall ell hi product on any but the unit price 

(i) Jo mpl yer of the ub livi ion hall require that the purchase 

or lease of any pro luct of the ubdi vi. ion be a prerequisite to the 

purcha e or lea of any oth r product . 

RTI LEX- FAIR PRACTICES 

Each of the followin o- acts and practices is deemed to be inimical 

to the best intere t of the Subdivi ion, and of the public and each is, 

therefore hereby declar l io be and to constitute, an unfair method 

of competition an l i her by prohibited; viz: 

1. The secret payment or allowance of a rebate, refund, commission, credit, unearned di count, or excess allowance in the form of 

money or otherwise, or the offering or extending to any customer 

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

same class for the purpo e of influencing the sale. 

2. The payment, or promise to pay to any ao-ent, fiduciary, or 

representative of money or valuable thing, with or without the 

knowledge of his principal, for the purpose of influencing any sale 

to his principal. This provision shall not be construed to prohibit 

free and general distribution of articles commonly used for advertising, except so far as such articles are actually used for commercial 

bribery as hereinaboYe defined. 

3. Any discrimination between purchasers of the same class, by 

the sale of any article having a published price, at any price below 

the seller's published price, by means of direct or indirect price concessions, or by means of any privilege not extended to such purchasers generally. 

4 . .r o employer of the Subdivision shall publish advertising 

(whether printed, radio, display, or .of any other nature), which is 

misleading or inaccurate in any material particular, nor shall any 

employer in any way misrepresent any goods (including but without 

limitation its use, trade-mark, grade, quality, quantity, origin, size, 

substance, char act.er, nature, finish, material, content or preparation) 

or credit terms, values, policies, services, or the nature or form of the 

business conducted. 

5. The publishing or circularizing of threats of suits for infrin o-ement of patents or trademarks, or of any other legal proceedings, not 

in good faith, which would tend to harass competitors or intimidate 

their customers. 

6. The renting of any new product where the object is t convert 

the tran action into a sale, provided however that this ection ( 6) 

hall not prevent the renting of products of the ubdivi ion on Bailment leases in those states where such tran actions are legally 

recoD"nized. 

7. The enO"ao·ing in d structive price-cutting by any employer in 

this ubdivision. 

RTICLE XI-SALES FOR EXPORT 

The provi ion of this Suppl mental Code one rnino- pricing and 

mark ting are not to apply to direct export sales of any pr duct. A 
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similar exemption may be granted by the Code Authority as to sales 

of any product destined ultimately for export. Unless otherwise 

determined by the Code Authority, the term "export" shall include 

shipments to all places without the several states of the United States 

and the District of Columbia; provided, however, that no shipment 

to any territory or possession of the United States shall be considered an export when any employer is engaged in the Subdivision in 

such territory or possession. 

ARTICLE XII-MODIFICATIONS 

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

may from time to time cancel or modi:fy 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, prop0sed by Code Authority, and approved 

by a seventy-five percent vote of the cooperating employers, shall 

be in full :force and effect upon approval by the Administrator. 

The eligibility requirements, method, and effect of such voting shall 

be the same as provided by Article V, hereof. 

ARTICLE XIII-WITHDRAWAL 

Upon thirty (30) days' notice to Basic Code Authority and to 

the Administrator, this Subdivision may, upon the affirmative vote 

of not less than 66o/3 % of the employers within the Subdivision withdraw from the jurisdiction of Basic Code Authority. The eligibiliity of voters and the method and effect of such voting· shall be 

in accordance with the provisions of Article V hereo:£. Thereafter, 

this Supplemental Code, together with the provisions of the Code, 

except such portions of Article I, II, VI and VII as are not perti-

- nent thereto, as determined by the Code Authority and Administrator, shall become and be the code o-overning this Subdivision and 

the Code Authority shall for this Subdivision, become and be the 

only Code Authority, and shall perform all the functions with 

respect thereto. 

ARTICLE XIV-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is 

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

applied as to oppress or eliminate small enterprises or discriminate 

against them, and is designed to effectuate the policy o:£ the Act. 

ARTICLE XV-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

persons engaged in the Subdivision on the eleventh day after its 

approval. 

Approved Code No. 347-Supplement No. 19. 

Registry No. 1312-04. 

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