Approved Code No. lOS-Supplement No. 3 Registry No. 1404-36 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

IJEAF SPRING 

MANUFACTURING INDUSTRY 

U.S. DE 

(A Product Group of the Original Equipment 

and the Replacement Parts Divisions of 

the Automotive Parts and Equipment 

Manufacturing Industry) 

AS APPROVED ON JULY 18, 1934 

WE DO OUR PART 

- ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superint.endent of Docume nts, Wa hin~tton, D.C. - • - - • • • - Price 5 ce nta 
\ 

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 OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, 1\lass. : 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. D~troit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Buildiug. 

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 Commoccial Trust Bull<ling. 

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. lOS-Supplement No. 3 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

LEAF SPRING MANUFACTURING INDUSTRY 

As Approved on July 18, 1934 

ORDER 

SUPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE LEAF SPRIN o 

~1ANUFACTURING INDUSTRY 

A PRODUCT GROUP OF THE ORIGINAL EQIDrMENT AND THE REPLACEMENT 

PARTS DIVISIONS OF THE AUTOMOTIVE PARTS AND EQillPM:ENT MANUFACTURING INDUSTRY 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of Fair 

Competition for the Leaf Spring Manufacturing Product Group of 

the Original Equipment and the Replacement Parts Divisions of the 

AutomotiYe Part and Equipment Manufacturing Industry, a supplemental Code to the Basic Code of the Automotive Parts and Equipment :Manufacturing Industry, and hearings having been duly held 

th reon and the annexed report on said Code, containing findings 

with r pe t thereto having been made and directed to the Pre ident: 

N 0"'\V, THEREFORE, on behalf of the President of the United 

Stat I Hugh S. John on, Administrator for Industrial Recovery, 

pur uant to authority ve ted in me by Executive Order of the Pre int in luding Ex cutive Order No. 6543-A, dated December 30, 

19' 3 and oth rwi · o hereby incorporate by reference aid annexed 

r p rt and do find that said Code complies in all r pects with the 

pertin nt pr vi ions ~nd will promote the policy and purpo e of said 

Titl of said A t ·and c1 h reby or r that aid od of Fair Competition e and it ish r by approv d · provid d howeYer, that the proi ion of Articl IV aracrraph (15) in ofar a th prescribe a 

waitincr p rio l betw n the filing with the l Authority (i.e. 

a tual r eipt b th l Authority) and the ff cti e date of revi cl pri li t r r vi. eel term and onditions of ale be and they 

ar h r by tayed 1 nding my further rder · and provi led furth r, 

that appr val of th provi ions of ecti n 5 of Arti l III and ection 1 and 15 f Arti ·I IV hall terminate if and when th r Yi75034 0---- 29-101----34 (1) 
2 

~ions of ection 5 of Article III and Soctions 1 and 9 of Article IV 

of the Supplemen ary ode for the Replacement Axle haft :Manu- facturing Indu try and ection 5 of Article III and ections 1 and 14 

of Art~cle IV of the Supplementary ode for the Automobile Hot- T\T ater Heater :lllanufacturing Indu try or any of uch provi ions 

are modified. 

A.pproT"al recommended: 

c. E. ADAM 

H GH S. JoHx O:N 

Adntini t1·atorr fo-r Industrial R ecove1"1/. 

Division AdministTator. 

w A.SHIXGTON, D.C., J uly 18, 1934-
REPORT TO THE PRESIDENT 

The PRESIDENT 

T he TV hite H ouse. 

IR: The upplement to the Code of Fair Competition :for the 

Automotive Parts and Equipment Manufacturing Industry covering 

Fair Trade Practices for the Leaf Spring n1anufacturing Product 

Group a ub-divi ion of the said Indu tr . "Was submitted to the Admini trator on eptember 22 1933 by the Leaf Spring Institute repre enting approximately 90% of the total volume of ales and member of the Trade. 

The H earing was conducted in Washington on December 7, 1933 

and the supplement was revised durin~ the reces of this H earing 

and is submitted in its present form tor appro'"al. Every person 

who requested an appearance "\\as properly heard in accordance 

with the statutory and regulatory requirements. 

1Vhile the Product Group is nation-wide in character, it has not 

experienced any increa e in the number of e~tablishment..'3 during the 

pa t f ew years. ARTICLE I states the purpose of the Supplementary Code. 

ARTICLE II accurately defines specific terms employed in the 

Supplementary Code. This Product Group is a sub-division of the 

Automotive P arts and Equipment :Manufacturing Industry and the 

labor provision of its Basic Code as approved November 8, 1933 are 

the labor provisions of thi Supplementary Code. ARTI LE III establi hes an Administrative Committee consisting of the Executive Committee of the Institute and one addi- tional member to be selected at the di cretion of the Administrator 

and one non-voting member~ to be appointed by the Admini trator. It al o provide machinery tor obtaining stati tics and the administration of this Code. 

ARTI LE IV sets forth the fair trade practices of this Supplem ntary ode which ba been e pecially de igned to effect fair competition in this Product Group of the Indu try. 

RTI LE V provide against monopolies and monopolistic prac- tice and provide for the ubmi~ ion of supplementar provi ions 

to this Supplementary Code or modification thereof_ and contain 

the mandatory pro vi ions · contained in ction 10 (b) of Title I of 

the Act and tate the effective da of the upplementary Code 

shall mean the tenth day after it has been approved. 

FDmL~os 

The Deputy Admini trator in hi final report to me on aid Supplemental ode haYing found as h rein set forth and on the ba }s 

of all the proceedings in thi matter; 

(3) 
4 

I find that: 

(a) Said Supplemental Code is well designed to :promote the 

policies and purposes of Title I of the National Industnal 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 amon<Y the 

trade groui s, by inducing and maintaining united action of Yabor 

and mana.gt-ment 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 ( ex·cept as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment1 by improving 

standards of labor, and by otherwise rehabilitating Industry. 

(b) Said Product Group normally employs not more than 50,000 

employees; and is not classified by me as a major industry. 

(c) The Supplementary Code as approved, complies in all respects 

with the pertinent provisions of said Title of said Act, indudin~ 

without limitation Subsection (a) of Section 3, Subsection (a) ot 

Section 7 and Subsection (b) of Section 10 thereof; and that the 

applicant Institute is an industrial Association, truly representative 

of the aforesaid Industry; and that said Institute imposes no inequitable restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not 

permit monopohes or monopolistic practices. 

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

eliminate or oppress small enterprises and w1ll 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 

Supplementary Code. 

For these reasons therefore, I have approved this Supplementary 

Code. 

Respectfully, 

JULY 18, 1934. 

HuoH S. JoHNSON, 

Administrat01'. 
SUPPLE~fENTARY CODE OF FAIR C0~1PETITION FOR 

THE LEAF SPRING MANUFACTURING INDUSTRY 

A PRODU T GROUP OF THE ORIGINAL EQUIPMENT AND REPLACEMENT PARTS 

DI I ION OF THE AUT011IOTIVE PARTS AND EQUIPMENT MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

Pursuant to the pro isions of Article II of the Code of Fair 

Competition for the Automotive Parts and Equipment ~1anufacturing Industry, duly approved by the President on November 8, 1933, 

the following provisions covering fair trade practices and the admini tration thereof :for the Leaf Spring Manufacturing Product 

Group which has been organized as an administrative unit under 

the Original Equipment and Replacement Parts Divisions of the 

Automotive Parts and Equipment Manufacturing Industry, are 

hereby established as the standards of :fair competition for said 

Product Group and shall be binding upon every member thereof. 

ARTICLE II- DEFINITIONS 

The term" Product Group" as used herein is defined to mean the 

production and/ or manufacture for sale of leaf springs and/or their 

component parts for original equipment or replacement parts on 

motor vehicles or any other vehicle or product except street cars or 

railway car . 

The term ~1ember " or " :11ember of the Product Group " as used 

herein include , but without limitation, any individual, partnership, 

ass iation, corporation, or other form of enterprise engaged in the 

proclucti n and/ or manufacture of the products of the Product 

Group either as an employer or on his or 1ts own behalf. 

The term " la 'A' ~fembers ' as used herein is defined to mean 

m mber of the Procluct roup whose products are sold to manufa ture1:· of motor 'ehicles or any other vehicle or product except 

str t ar or rail way cars, for original equipment and for serYi ·e 

r quir m nts thereon. 

The t rm la ' B ~f mbers " as used here'in is defined to mean 

m n ber · of the Proclu t Group whose produ ts are sold to custom rs 

oth r than buy r of original equipment for replacement of 

ori inal ring or parts thereof £or motor vehicles or any other 

v hi le or proclu t except treet cars or railway car . 

Th term ' la ' :M m bers ' as u ed herein is defined to m an 

m m er of the Product roup who maintain spring service stations 

whi ·h manufacture a part or all of the replacement pring and parts 

there f old by them f r replacement of original springs and parts 

ther of f r motor vehicles or any other vehicle or product except 

street cars or rail way cars. 

(~) 
6 

The tBrm "Primary Outlets" as used herein means such customers 

as may be so classified in accordance with the provisions of Paragraph 14 of Article IV. 

The term " Secondary Outlets " as used herein means such customers as may be so classified in accordance with the provisions of 

Paragraph 14 o:f Article IV. 

The term "Institute" as used herein is defined to mean the Leaf 

Sprin[ Institute, a trade association at present having its headquar- ters othce in Detroit Michigan. 

The term" Basic Code" as used herein is defined to mean the Code 

of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry, as approved by the President on November 8, 

1933. 

The term " Code Authority " as used herein is defined to mean 

the Code Authority designated in the Code of Fair Competition for 

the Automotive Parts and Equipment Manufacturing Industry. 

ARTICLE III-AnMINISTRA TION 

(1) (a) The Executive Committee of the Institute shall constitute the Administrative Committee to assist the Code Authority 

and the Administrator in the administration of the fair trade 

practice provisions hereinafter set forth and the provisions of the 

Basic Code, to which these fair trade practices ar-e a supplement .. 

One additional member may in the discretion of the Administrator . 

·be added to represent non-members of the Institute who assent to 

and comply with this supplement, such additional men1ber to be 

selected by such non-members · of the Institute by a fair method 

approved by the Administrator. 

(b) In addition to membership as above provided, there may be one 

additional member, without vote, to be appointed by the Administrator, to serve without expense to the Industry for such term as he 

may specify. · 

(2) (a) It being found necessary, in order to -support the administration of this supplement and to maintain the standards of fair 

competition established hereunder and to effectuate the policy of the 

Act, the Administrative Committee is authorized, subject to the 

approval of the Administrator: 

( 1) To incur such reasonable obligations as are necessary and 

proper for t~e foregoing p~rposes and ~o meet such. obligations ?ut 

of funds which may be raised as heremafter provided and wluch 

shall be held in trust :for the purposes of the supplement; 

(2) To submit to the Administrator for his approval, subject to 

such notice and opportunity to be heard as he may deem necessary, 

(a) an itemized budget of its estimated expenses for the foregoing 

purposes, and (b) an equitable basis upon which the funds necessary 

to support such budget shall be contributed by members of the 

Product Group; 

(3) After such budget and basis of contribution have been 

approved by the Admjnistrator, to determine and obtain equitable 

contribution as above set forth by all members of the Product Group, 

and to that end, if necessary, to institute legal proceedings therefor 

in its own name. 
7 

(b ) E ach memb r of the P roduct Group shall pay his or its equi-· t able contribution to the expen e of the maintenance of the Admini -

trative ommittee, determined as h reinabove provided, and ubj ect 

to rules and regulations pertaining thereto i sued by the Admin] - trator. nly members of the Product Group complying with the 

upplcm nt and ontributing to the expen es of its admim tration as 

hereinabove provided, hall be entitled to participate in the election 

of member of the Administrative Committee or to receive th benefits 

of any of it voluntary activities or to make use of any emblem or 

in ignia of the National Recovery Administration. 

(c) The Admini trative Committee shall neither incur nor pay any 

obligation in excess of the amount thereof as estimated in its ap- proved budget, except upon approval of the Admini trator ; and no 

sub equent budget hall contain any deficiency item for expenditures 

in ce s of prior budget estimates except those which the Administrator shall . have so approved. 

(3) (a) The Administrative Committee shall, subj ect to the dis- approval of the Code Authority and the Administrator, have the 

power to adopt by.:.laws and rules and regulations for its procedure 

and to obtain from members, directly or through an impartial agency, such information and reports as are required for the administration 

and enforcement of this Supplement; to cooperate with the Administrator in regulating the use of any N .R.A. insignia, to hear and 

adjust complaints; to initiate, consider and recommend to the Code 

Authority for transmittal to the Administr:ttor further fair trade 

practice provisions to govern the members of this Product Group; 

and to discharge the other powers and duties provided in this 

Supplement. 

(b) If the Administrator shall determine that any action of a 

Code Authority or any agency then of may be unfair or unjust or 

contrary to the public interest the Administrator may require that 

such action be suspended to afford an opportunity for investigation 

of the merits of such action and furthoc consideration by such Code 

Authority or agency pending final action which shall not be effective 

unless the Administrator apJ?roves or unless he shall f ail to dis- approve after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

(c) E ach trade or industrial association directly or indirectly 

participatinO' in the selection or activities of the Administr ative 

Committee ~all (1) impose no inequitable restrictions on membership, and (2) ubm1t to the Administrator true copies of it articles 

of as ciation, by-laws, regul ations, and any amendments when made 

thereto, t O'eth r with such other information as to m mbership, 

organizati n and activities as the Adlninistrator may deem neces ary 

to effectuate the purpose o£ the Act. 

(d) I n order that the dmini tr ati ve Committee hall at all times 

be truly representative of the P roduct Group and in other respects 

comply with the pro isions of the Act, the Administrator may pr - scribe uch earin~ as he may d m proper · and th r aft r if he 

shall find that the Administrati e Committee is not truly r pre ent- ati e or doos not in other resp cts comply with the pro i ion of 

the Act, may require an appro1 riate modification in the method of ... election of the Admini trative ommitte~ 
8 

(4) All members of this Product Group shall be bound by the 

provisions of the Basic Code. For this purpose, all provisions of 

the Basic Code are hereby declared to be a part of this supplement. 

In case of any conflict between the provisions of this supplement and 

the provisions of the Basic Code, the provisions of the latter shall 

govern. 

(5) The Administrative Committee shall cause to be formulated 

accounting methods and principles of cost finding and j or estimating 

capable of u e by all members of the Product Group. After such 

methods and principles have been formulated and approved by the 

Administrator, full details concerning them shall be made available 

to all members. Thereafter all members shall determine andjor 

estimate costs in accordance with such methods and principles.1 

ARTICLE IV-TRADE PRACTICES 

In addition to the provisions of Section C of Article VI of the 

Basic Code, the following described acts shall constitute unfair 

practices: 

(1) Selling B elow Cost.-(a) To sell the products of this Product 

Group at prices below cost, determined in the manner provided for 

in Article III, paragraph 5, of this supplement. 

(b) Nothing in this supplement shall prevent a member from 

selling at below cost as computed in accordance with the provisions· 

of Article III, paragraph 5 hereof, providing that it is necessary 

to do so to meet a competitive price that is not in violation of this 

supplement. 

(c) vVhen the Administrative Committee determines that an 

emergency exists in this Product Group and that the cause thereof 

is destructive price-cutting such as to render ineffective or seriously 

endanger the maintenance of the provisions of the Basic Code and/ or 

this supplement, the Administrative Committee may cause to be determined the lowe t reasonable cost of any of the products of this 

Product Group, such determination to be subject to such notice and 

hearing as the Administrator may require. The Administrator may 

approve, eli approve, or modify the determination. Thereafter, during the period of the emergency, it shall be an unfair trade practice 

for any member of the Product Group to sell or offer to sell any 

products of the Product Group for which the lowest reasonable cost 

has been determined at such prices or upon such terms or conditions 

of ale that the buyer will pay less therefor than the lowest reasonable cost of such products. 

vVhen it appears that conditions have changed, the Administrative 

Committee, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. 1 

(2) Comn&ercial Bribery.-To give, permit to be given, or offer 

to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another 

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

principal of such agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not 

1 See paragraph. 2 of order approving this Code. 
9 

be construed to prohibit free and general distribution of articles 

ommonly used for au ertising except so far as such articles are 

actu< lly used for comm rcial bribery as hereinabove defined. 

(3) Inacr:urate labeling.-To list, brand, mark, or pack any produ t f the Product Group in any maimer which is intended to or does 

d cei e or mislead pur ha ers in ome material particular or the failure to brand uch product for the purpo e or with the effect of mi - leading or deceiving purcha ers in some material particular, with 

r pe t to such products (including but with ut limitation their 

brand, grade, quality, quantity, origin, size, substance, character, 

nature, finisht material content, or preparation.) 

( 4) hnitatwn of trade-marks.-To imitate or copy a competitor's 

trade-mark, marking, trade name~ or exclusive and establi hed design 

which identifies the maker or vendor of the product, with the purpose 

or effect of misleading or deceiving any purchaser or prospective 

purcha er. 

(5) Inaoourate advertising.-To publish advertising (whether 

printed, radiot display, or of any other nature), which is misleading 

or inaccurate 1n anY. material particular, or to in any way misrepresent any product (including but without limitation its use, trademark, grade, quality, quantity, origin, size, substance, character, 

nature, finish, material content, or preparation) or credit terms, 

values, policies, services, or the nature or form of the business 

conducted. 

(6) Price Guar(NI,tee.-To guarantee Product Group Products 

against advance or decline in price. This clause shall not apply to 

original equipment sales. 

(7) Guaranty.-To give any guaranty or warranty on any product 

of the Product Group except aga~nst defects in workmanship or 

material. 

(8) Return of products.-The Administrative Committee shall immediately proceed to f rmulate a uniform policy covering the return 

of ob olete or unsalable products and present same for the approval 

of the Code Authority and the Administrator within thirty days 

from the effective elate. Upon approval by the Code Authority and 

the Administrator, after such hearing as the Administrator may 

prescribe, such rules and regulations shall become binding as a part 

of this supplement. Until such policy has been so approved, no 

member shall accept the return of any such products for credit or 

exchange, except products returned because of breach of vV arranty 

or as may be otherwise provided by applicable State Law. 

(9) Oonsign17U3nts.-To ship stocks of the products of this Product Group to distributors, contractors, manufacturers' agents, and/or 

other on consignment or under the ' Floating Credit or Ledger 

Balanc ' plan. All exi ting agreements r gardincr such shipments 

shall be terminated within 60 day from the date f approval of this 

suppl ment, with the exception of existing contracts which, by their 

term , annot be t rminated by that ate, ubject to the condition 

that c pies of such contracts ·hall be filed with the Administrative 

Committee. 

(10) Replaoilng CO'n?;petitors' tock.-To liquidate, purchase, or 

accept a competitor's product from any buyer. 
10 

(11) Interference with another's contracts.-To induce or attempt 

to induce the bre.ach of an existing contract between a competitor 

and his customer or source of supply; or to interfere with or obstruct 

the performance of such contractual duties or services. 

(12) Ooeroion.-To require that the purchase of any goods be a 

prerequisite to the purchase of any Product Group goods. (13) Used or rebuilt p1·oducts.-To sell or offer for sale rebuilt 

or used products which are not conspicuously designated as such. 

Such designation shall consist of the word "Rebuilt" or "Used" 

stenciled with 1~" block letters in red or another contrasting color 

on the visible side of the main leaf, and a band or strip of red or 

some other contrasting color of a minimum width of 4" circumscribing the entire spring. 

(14) Discri1nination.-To prevent unfair methods of competition 

the Administrative Committee shall recommend to the Code Authority and the Administrator a fair and equitable classification of customers based upon services rendered. Upon the approval of the 

Code Authority and the Administrator, after such hearing as the 

Administrator may pre~cribe, such classification shall be adhered to ~y all members of the Product Group. No member of the Product 

Group shall sell his products to any customer at net realized prices 

lower than are offered to all other customers of the same classifica~ 

tion for the same quantity, grade, quality, or style, provided, however, that due allowance may be made for differences in transportation costs. 

If any application of the foregoing classifications should work 

unjust hardship upon any member of the Product Group or any 

customer, such member of the Product Group or customer may appeal to the Administrative Co.mmittee and/or the Code Authority, 

which shall have power to make or require such reclassification as 

justice demands. 

(15) Fililng 1 price lut~.-Since it has been the general recognized practice o Class " B " and Class " C " members of the Product 

Group to sell their _rroducts on the basis of printed net price lists, 

or price lists with discount sheets and fixed terms of payment which 

are distributed to the trade, each Class " B " and Class " C " member 

shall file with the Administrative Committee a net price list or a 

price list and discount sheet, as the case may be, individually prepared by him, showing his current net prices, or price list and 

discounts, as the case may be, and terms of payment to the respective 

class of customers established pursuant to paragraph (14) of this 

Article IV, and the Administrative Committee shall immediately 

send copies thereof to all other Class " B " and Class " C " members. 

The Administrative Committee shall likewise make such filed prices 

available for insiWction by customers or prospective customers of 

the classification or classifications affected. Revised schedules may 

be filed from time to time thereafter with the Administrative Committee by any Class "B" or Class "C" member, to become effective 

upon a date specified by such member, which date shall be not less 

than 10 clays after the filing of such revised prices with the Administrative Committee and copies thereof with notice of the effective 

date specified shall be immediately sent to all other Class "B" and 

Class "C" members who thereupon may file, if they so desire, 
11 

revisions f their price li ts and/or discount beets, which, if filed 

pr Yi us to uch ffective date, may take effect upon the date when 

the r vi ed price li t or discount sheet first filed shall go into effect. The Admini trative mmittee shall lik wise make such revised 

fil pric availabl f r in pection by custom rs or pro pecti e 

u tomer of th cla ifi ation or cla ificati n affected. 

o la B ' or Cia "C" member shall sell or offer to ell any 

pro u t at pric low r or di count greater or on more fa, arable 

t rm of payment than the approved chedule of such member which 

i in ff t and on file with the Admini trative Committee as above 

provided. 2 

(16) Branch and 1T a1·ehouse Stocks.-To make sales from warehou e tocks other than at the members own factory unless the following provisions prevail : 

(a) Except in ca e of bona fide binding contra ts entered into 

prior to the date of the approval of this Supplement, and in cases of 

Warehouse arrangements established prior to such date, no member 

shall warehouse products on premises owned by a customer in whole 

or in part except in duly established public warehouses, whether or 

not the customer ha.s an interest therein. 

(b) All existing agreements and ~rrangements regardin~ branch 

and warehouse stocks must be recorded and filed with the Administrative Committee. 

(c) Members shall make a reasonable service charge fo·r services 

rendered, based on the lowest reasonable cost of members maintaining such branch or warehouse stocks, the determination of such 

charge to be subject to the approval of the Administrator. No such 

charge need be m~d.e on sales from branch or warehouse stocks 

located in the s:tme city or trading area as a competitor factory. 

(d) On stocks which have been warehoused with a customer prior 

to the date of tlte approval of this Supplement, the following rules 

shall prevail : 

A warehousing fee no oTeater than paid as of th~ date of approval 

of this Supplement may be paid to such cu tom.er only for the sheltering by such customer of stocks hipped to the members' other custom r and not otherwi e. In connection with the making of any 

sale or hipment of such to ks to such other cu tomers and in billing 

for uch sales and making c llection thereon, the member shall not 

employ the servi s or facilities of the custom-er with whom such 'to ·k ar war hou ed. 

(17) T rms.-(a) To extend credit terms greater than 30 days 

net r net 15 prox. to manufacturers for original equipment purposes. 

(b) T xt nd credit t rm greater than 1% lOth prox. to all other 

cu tomers. 

(1 ) Eng-inee-ring specifications.-To furnish engineerinO' specification as u ed for manufacture to customers except as contained in 

regularly ubli h cataloO' . (19) F1·eight Allowance.-Th Administrative Committ e shall 

proc d immediat ly to prepare a h dul of freiO'ht allowanc s and 

submit am for th appro al f the od th Administrator within thirty day from the pon uch 

' See paragraph 2 ot order approYiD" tbls de. 
12 

approval of such schedule no member hall make any freight allowance to cu tomer in exce s of the provi ion of uch schedule. 

If any application of this paragraph hould work any unju t hardship upo:o. any member of the Product Group or upon any cu tomer, 

such member or cu tome.r may appeal to the Admini trator, who 

shall have po er to grant such relief a ju tice may require. · 

(20) Volum/3 Allowance.-No member of the Product Group shall 

e:rlt"md to any cu tomer an rebate or bonus ba ed upon the total 

volume of purchases of such cu tomer over a period of time except 

a follows: 

Each member of the Product Group shall report to the Administrative Committee a complete schedule of rebates or bonu es for 

volume allowed by him or it during the year 1933. From such reports, the AdminiStrative Committee shall select the highest rebate 

and bonus rates and terms hich represent cu tomary sellmg practice 

in the Product Group in said year and shall prepare a compo ite 

schedule of rebate and bonuses which embodies said selected rebate 

and bonus rates and terms. Said composite schedule shall be reported 

to the Code Authority and the Administrator, together with tn1e 

copies of the individual schedules from which it was de-rived. After 

approval thereof by the Code Authority and the Administrator, no 

member of the Product Group shall extend to any customers any 

r ebate or bonus at a r ate higher or on terms more favorable than a.re 

provided in said composite schedule. 

If any application of this par~DTaph should work any unjust hardship upon any member of the Product Group or upon any customer, 

such member or customer may appeal to the Administrator, who shall 

have ~ower to grant such relief as justice may require. 

(21) Export.-The proviosions of this supplement with regard to 

, prices discounts, deductions, allowance , extras, or methods and/ or 

terms of sale apply to direct export sales and to sales in course of 

export (i.e. sales destined ultimately for export), and to sales of 

materials used in the manufacture of product for export, except 

as may oo otherwise provided by the Administrative Committee, 

subj ect to the approval of the Administrator. 

ARTICLE V-GENERAL 

(1) No prov1 wn of this supplement shall be so applied- as to 

permit monopolies or monopoli tic practice , or to eliminate, oppress, 

or discriminate again t small enterprises. 

, (2) Such of the provisions of this Supplement as are not required .to be included herein by the Act may with the approval of the 

·Admini trator be modified or eliminated upon propo al by the Product Group or any member thereof if it appears that the public needs 

are not being served thereby and as changes in circumstances or 

experience may indicate. (3) It is contemplated that from time to time supplementary 

provisions to this Supplement or modifications thereof will be submitted by the Admini trative Committee through the Code Authority 

for approval to prevent unfair competition in price and other unfair 

and destructive competitive practices and to effectuate the purpo es 

of the Act. Upon approval by the Administrator after such notice 
13 

and h aring a he may pre cribe such supplementary provi ions or 

modification hall become binding a a part of this Supplement. 

( 4) r quired by e ·tion 10 (b) of Title I of the Act, the following pr Yi i n i con ained in thi ·upplement: The Pre ident may 

from tim to time cancel or modi£ any order approval, licen e, rule 

or regul tion i ·sued und r n.id Title. 

( 5) No member of thi Product Group hall be held to have con- sented to an modification of this supplement or to any provision or 

interpretation of the National Indu trial RecoYery Act if declared 

uncon titutional by the upreme Court of the UnitBd States. 

(6) \ iolation by any member of this Product Group of any provision of this Supplement is an act of unfair competition, and the 

offender hall be subject to the penalties impo ed by the Act. 

(7) The term ' Effective Date ' as used herein means the lOth day 

after this Supplement shall have been approved by the President. 

Approved Code No. 105---Supplement No. 3. 

Registry No. 1404-36. 

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UNIVERSITY OF FLORIDA 

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