Approved Code No. 263 Registry No. 1331-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MACHINE KNIFE AND . ALLIED STEEL PRQDUCTS 

MANUFACTURING INDUSTRY 

AS APPROVED ON FEBRUARY 6, 1934 

UNiV. OF rl LL. 

oocu g; • Is DEPT. 

1 f 

...... ~ ----

U.S. DE 

WE DO OUR PARr 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superintendent of Document , Washington, D.C. - • - - - - - • Price 5 cents 

v 
This pullli<:atiou is for ~nl by the . np('rintl•n<lcut of Docum nts, GoYernment 

Printing OfiicP. \Y~vllin 'ton, .C .. and hy tli:-;trict offic of the Dureau of Foreign 

and Dome.tic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlant<1, C:a . : :-ill-:1- l'o~t Oflkc l:uillling. 

Dirmin;ham. ~\Ia.: T7 Fe<leral Duillling. 

Bo.ton. :\Ia:-:s.: 1 01 Cu:;;tomhnnse. 

Duff a lo. )\. Y. : Cluun ber of Commerce D uilding. 

'llarle~ton. S.C.: < 'hamllcr of Commer<:e Builtling. 

'lli ·ago. 111.: S11it 170<;, ~01 XortlJ Well:-: Street. 

'le,·chm<l, Ollio.: Chnmher of 'ommerCl'. 

Dnllas. Tl'x.: C'llamhcr o( Commer<:e D11ildiug. 

Detroit. ~Ii<-11.: '01 Fir:-:t X<ttion<ll B<lllk Buillliug. 

Houston. Tex.: <'ham! er of 'ommcrce Dnillling. 

Indianapolis In<l.: CI1amh r of CommPr e Duilding . 

.Jack. ·onyiJlc, Fla.: Cllamllcr of 'ommerce 13uil1ing. 

Kan._as <'it~·, ::\Io.: 10~8 Baltimore AY<'nne. 

Los Ang·eles, Calif.: J 1(5:~ . outh Droatl\Ya,,·. 

LouisYillt•. Rf: -:1-!1 :F'edernl Bnil(ling. 

:u Dll1hi:-;. Tt•mL: 22n Fecler;ll Bnil<ling. 

::\[inneapolis. ::\linn.: ~J3 Ft>lll'rnl Duilcling. 

Xew rleans. La.: Room ~~3-.\, 'nstomhou ·e. 

Xe"· York, X.Y. : 7:3-l ('ustomhouse. 

Norfolk. Yn.: -:1-0B E:.lst Plume Street. 

Philadelphia. ra.: -:1-22 Commcr<:ial Trust Building. 

Pittsburgh, l'a.: Chamber of Commerce Building. 

Portlnnrl, Or g.: ~13 ~c"· l'ost Oflitc Builclino·. 

St. Louis. ::\Io.: R06 OliYe tl·eet. 

San Frands o, f'alif.: 310 Cu. toml)(luse. 

Seattle, '\Ya.-h.: ..,0!) Federal Office Buil<1ing. 
Approved Code No. 263 

CODE OF FAIR COMPETITION 

FOR THE 

MACHINE KNIFE AND ALLIED STEEL PRODUCTS 

MANUFACTURING INDUSTRY 

As Approved on February 6, 1934 

ORDER 

APPROVING CoDE oF FAIR Col\IPETITION FOR THE :MAcHINE ICNIFE AND 

ALLIED STEEL PRODUCTS MANUFACTURL. G IND TRY 

An application having been duly made pur uant to and in full 

compliance with the provi ions of Title I of the National Inclu trial 

Recovery Act, approve l June 16, 1933, for approval of a Code of 

Fair Competition for the :Machine ICnife and Allied Steel Products 

Manufacturing Industry, and hearings having been duly held thereon 

and the annexed report on aid Code, containing finding with 

respect thereto, having been made and directed to the President: 

NOW THEREFORE, on behalf of the President of the United 

State , I, Hugh S. Johnson, Administrator for Indu trial Recovery, 

pur uant to authority v ted in me by Executive Or ler of the 

Pre ident, including Executive Order No. 6543-A, dated December 

30, 1933, and oth rwise; lo hereby incorporate by reference said 

annexed report an l do find that said Code compli s in all re pect 

with the pertinent provi ions and will promote the policy and purpo e of aid Title of aid Act· and lo hereby orcl r that aid ode of 

Fair omp tition be and it i hereby approved· provided however, 

that th provi ion of Article VIII, in ofar a they pr cribe a waiting perio l bet11 en the filing with the Code \._uthority and the effective date of r vi e l pric li ts or revi ed t rm and con liti n of 

sale be and th y are hereby tayed pending m3 further Ord r 

either within a p rio l of ixty clay from the effecti date of this 

Code or after the mpletioin of a tud of op n pric as ociations 

now being c nduc l by the National R cov ry A lmini tration. 

H GII s. J OIIN ON 

dmini t7·ator for I ndust1~ial R ecove1·y. 

Approval Recomm n led : 

'' . A. HARRDL\N Di i ion A !mini ·tra.tor. 

\VA HIXGTON .C. 

F bruary 6 1934. 

38563°----376- 27----34 (243) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The .. White lim,cse. 

SIR: This is a report on the Code of Fair Competition for the 

Machine I\::nife and Allied Steel Products :Manufacturing Industry1 the hearing ha' ing been held in 'Vashington on the 11th day ot 

December in accordance with the provisions of the National Indu. ·- trial Recovery Act. 

PROYISION ' A TO HOURS AND W .\.GES 

Employment i · limited to hours per day and 40 hour per 

week ·with the exception of tho. ·e employee engaged in emergency 

maintenance ancl j or repair work or on emergencies occasioned uy 

the necessity for ·en·ices of specially .-killed employe · ''ho cannot 

be replacetl. To pr Yicle for seasonal demand· oYertime i.· allowed 

to the extent of 8 hours per 1reek for 8 week · in any 26-week period. 

Overtime in exce .. :s of hour · in any 24-hour perio l or in x"e:·s of 

40 hour in any 7-day period \vill be paid for at one an l on half 

times the normal rate. 

:Minimum wage · of 40 cent. per hour for male. and female · are 

e tablished. Female employees performing . ·nbstantially the a me 

'York a.· male employee. ''ill receiYe the .-ame rate of pay as male 

employees and where they di .. :plnce men the:v ''ill receiYe the arne 

rnte of earning. as men. 

Clerical employees shall not be pnid les than $15.00 per week. 

ECONO::\[IC EFFECT OF THE CODE 

In April 1933 thi Inclustr~·. ''hi ·h comprise approximately 30 

firm , employed about 350 persons. Since the udoption of the 40-

hour \leek as proYided in this Code, employment ha. · increa. eel to 

534 per ·ons in September 1933 or an in rea. ·e of 52%. 

The inve. ·ted capital of the Inclu try is about $3,000 000 and the 

aYerage annual Yaluc of it proclu ts oYer the pa.·t fiye years is 

approximately $3.000,000. 

FTNDIXGS 

The Deputy Admini b·ator in hi · final report t me on aiel Code 

having found a · herein . et forth and on the lm. i. of all the proc e<1 -

ings in this matter: 

I find that: 

(a) Said Code is well desio·ned to promote th .policie. and purpo e of Title I of the National Indn trial Reco' ery A t, inclu ling 

removal of ob tructions to the free flow of interstate and foreign 

(244) 

/ 
245 

FEBRUARY 6, 1934. 

I-I UGH S. JOHNSON' 

Acl1ninistrator. 
CODE OF FAIR COMPETITION FOR THE l\lACHINE 

KNIFE AND ALLIED STEEL PRODUCTS :MANUFACTURI~G INDUSTRY 

ARTICLE I-PCRPOSES 

To effectuate the policies of Titl e I of the National Inclu trial 

Re overy Act the following rrovi ions are establi heel as a Code 

of Fair Competition for the l\Iachine I\:nife an l 'Allied teel Product.· l\fanufaeturing Industry and shall be the standards of fair 

competition for such Industry and shall be bin ling upon every 

member thereof. 

Ann 'LE II-~Io:xoroLY AXD RErnE. ·~ro N 

No proYi ·ion of thi Code hall be o applied as to permit monopoli or monopoli tic practice or t eliminate oppre · , or 

eli crimin n t e a o·a in. t sma ll enterpri ·es. 

~ \.nn LE III-DEFIXITION 

ECTIO:N 1. The term · ~lachine Knife and Allied Steel Products 

~Ianufactnring Inclu::;try ' as use l herein i · define l to mean the 

manufacture for :ale of ma ·hine knive · and allied te l product , u eel a machine part. and primarily for ·nch purpo. e · as utting 

and scraping Yariou. · material:. 

SEc. 2. The term ' A ·ociation ' a · n eel herein i c1 fin d to mean 

the l\IIa ·hine I\:nife A sociation of the United State ·. 

SEc. 3. The term "l\Iember:hip ' a: used h rein i: defined to mean 

member. · of the 1\-Ia ·hine Knife Association of the l: nite l Stat ::;. 

EC. ±. The term "Employee ' a.· used herein include anyone 

engaged in the Inclu. try in any capacity r ceiving ·om pen. ation for 

hi. serviees, irre:pectiYe of th natur or metho<.l of payment of uch 

compen. ation. 

SEc. 6. Th term 'Apprentice" a: nst'cl herein i. any employee 

bound b~T a legal contra ·t to learn a trade. 

SEc. 6. The term "Emplo~Te1· " a: u:e<l herein inclmlE'. anyone 

by ·whom any .-uch employee is ·ompensated or t>ntployecl. 

SEc. 7. The term ''1\Iember of thE' Indu. ·try a: u. eel herein in-

·lucle ·anyone engacred in the Incln.-try as abO\~e defined, either a: an 

employer or on hi · own behalf. 

SEc. . The tt>rnL · "PresiclE'nt ", ''Act' . . and ''Administrator .~ 

u ·eel hen• in shall mean, resr ,diYely the President of the l nited 

State , Tjt]e I of the Xntional Indn trial RecoYery A-t an l the 

Administrator for Inclu trial R"con·ry. 

(:!46) 
247 

AnTI 'LE I' -'V !1KING II n 

1. ·hall b p rmitt d 

to w rk in ex e · f forty ( 40) hour in any n (1) w k r ~ight 

( ) h ur in any tw nty-four (24) hour p ri d beginning at miunie,"ht, x pt a h rein oth rwi. e provi lc L 

SE . 2. Ex eption a to houl' ·-Executi:ves and ·ale m ,n.-(a) 

Th 1 r vi i n of ction 1 above shall not apply to ithcr x utivc and up n i or and their imm diate as.'i tant rec iving thirtyfive ($' 5.00) lollar weekly or more, or to travelino· ale m n. 

(b) Em J•g ncy overthn .-Th maximum hour fix d in the foregoing ction hall not al?ply to any employee on emergency maintenance or em ro·ency repa1r work involving breakdowns or protection 

of life or property, or on emergencies occasioned by the n essity for 

s rvic s of pecially skilled employees which cannot be cared for 

by the employment of additional men. But in any uch pecial ca ·c 

at least one and one half times the normal rate shall be paid for honrs 

work din excess of the maximum provided in Section 1 above. 

(c) Ordinary ove1·time for seasonal periods.-The maximum hours 

fixed in Section 1 above hall not apply for eight (8) weeks in any 

tw·enty- ix (26) weeks period, during which overtime hall not exceed ight (8) hours in any one (1) week. In any such case at 

least one and one half times the normal rate shall be paid for hours 

worked in excess of eight (8) hours in any twenty-four (24) hour 

period, or in excess of ~orty ( 40) hours in any seven (7) clay period. 

(d) Reporting overtime.-All work in excess of the hours provided in Section 1 above shall be reported to the Code Authority 

in such detail as may be required. 

SEc. 3. Sunday and holiday work.-N ot less than one and one half 

time the regular rate shall be paid for all work performed on 

Sun~ays or legal holidays, but watchmen are excepted from this 

prOVlSlOn. 

SEc. 4. lV atchmen.-"\V atchmen shall be permitted to work not in 

· exce s of forty-eight ( 48) hours per week. 

EC. 5. Employment by several employers.-N o employer shall 

knowingly permit any employee to work for any time which, when 

totaled with that already performed for another employer or employer , exceeds the maximum permitted herein. 

SEc. 6. M aximu7lL houTS for working e1nployers.-Employers who 

per onally 1 erform manual work or are engaged in mechanical 

operations hall not exceed the pre cribed maximum number of 

hours. 

ARTICLE V-,VAGES 

SEcTION 1. (a) No employee, except a her in after proYided, hall 

be pail at l · than the rate of forty ( 4 ) cent an hour. . 

(b) l rial emplo3ees ·hall b 1 ail at a rate of not le than fif. 

teen ($15.00) lollar per week 1 rovided how v r, that office boys 

and o'irl and me en ·er hall b I ail at a rat not le than eighty 

( 80) I er ent of the minimum alary herein provided, and provided 

further that the number of uch office boy an l o·irl an me enaers 

o paid shall on itute not more than five ( '"') percent of the total 

number of office or clerical workers emr loyed by any one mployer ; 
248 

but in any ca. e, each employer shall be entitled to employ hYo (2) 

such employees. 

SEc. 2. Pi ce 1·ates.-Thi Article establishe. a minimum rate of 

compensation, irre pective of whether an employ e i ac:tnallv paid 

on a time rate, on a piece rate, or other basis. · 

SEc. 3. Fema.Tes.-Female employee performing . ·nbstantially the 

ame work a male employees shall receive the ·ame rate of pay as 

n1ale emplo} ee ; and where they <.li place men, they ·hall r ceiYe the 

same rate of arning · a the men they di place. The Code Authority 

shall file with the Admini trator within ninety (90) clays after the 

effectiYe date of thi Cole a de .. cription of all ocl:upntion:-; in the 

Industry in ·which both men and women are employed. 

SEc. 4. Appi'entice .-Regularly indentured apprentic(' · shall be 

paicl a starting rate not le.': than eighty ( 80) percent of the minimum set forth in Se ·tion 1 aboYe. The number of apprentices .. hall 

not at any time exceed the ratio of one (1) apprentice to ten (10) 

skilled workmen engaged in protlnction. A copy of all such a Pl rentice hip contra ·t · shall be fileLl \\~ith the Code Authority. 

SEc. 5. Disab7cd cmployce,·.-An indiYidual " ·bo ·e earning capacity is limitecl been use of age or phy ical or mental handicap may be 

employed on light \York at a wage below the minimum ~ .. tabli hed 

by this Code if the employer obtains from the State Authority 

designated by the United States Department of Labor a certificate 

authorizing his employment at nch wage · and for uch hour as 

hall be . tatt'(l in the certifi ate. Each employer hall file with the 

Code Authority a list of all snch per:::;on · employe l by him. 

SEc. G. Adju. ting ?''age stale.-\Vithin thirty (30) <lays after the 

effectiYe elate of thi:-; Code, the '"age.' paid all workers whose pay is 

aboYe the minimum shall be equitably adjuste l if this has not 

alrea ly been clone ince ~1ay 1, 1933. In 1naking uch readjustment, 

there shall bP no clecrease in wage rates at thi. · time. \Vitl1in sixty 

(60) day .. of effective elate the Code Authority . hall report to the 

Atlministrator the r eaLlj ustment. · made. 

AnTI CLE YI-GEKEHAL LABOR Pnon 'IONS 

ECTION 1. In compliance with Section 7 (a) of the Act it is 

provided: (a) that employee.- ·hall have the right to organize and 

bargain coll ·tively through representatiYe · of their own choosing, 

and shall be free from the interference, restraint, or coercion of 

employers of labor, or their agent ·, in the l ::,ignation of uch repre-

.'entatiYes or in :-;elf-organization or in other concerted actiYitie · for 

th purpose of collecti\·c bargaining or other mutual aiel or protection; (b) that no employee and no one seeking employment shall be 

required as a c:onLlition of employment to join any company union 

or to refrain from joining, organizing. or a.·si tlng a labor oro·anization of his own choosing; and (c) that employers shall ompl ' with 

the maximum honr: of labor, minimum rate · of pay, and other conditions of employment npprovell or prescribed by the Pre ·ident. 

""'Ec. 2. No per. ·on mHler 16 y ur · of ag shall be employed in the 

Indn try, nor anyone 1mclcr 18 years of age shall be employe 1 at 

operatio11s or o ·c·upation: hazunlons in nature or cletrimentnl to 

health. The Code Authority shall ·ubmit to th AJmini tl·ator 
249 

b • for nin ty (90) clay: a. li.-t of ~n h o '('llpat ions. In any ~ tate an 

employ<.'r. hall be deem c1 t ha,· omplictl with this provi .. ion if he 

shall hnn' on fil a c· rtifil'at or p rmit~ (lui issurd by the antlwrity 

in .Tt ·h Rtnt f.:mpownetl to i."."U Pmploym nt r age C'rrtific.:ate or 

permits . .-howing th< t the t'mployee is ,f tbe rflq11ircd ag . 

R:Ec. 3. \Yithin each Stat' thi.. cl ."hall n "- .. up rsed any la,vs 

<1f . uch "tate impo ·ino· mor rino· n r qnircm nt." on n player:, 

r gnlating the ag of mplo ree,. wao· . , hour.' of work health fire, 

or gPneral w rking condition. , than nncl 'l' thi · od . 

R ·C'. -1. Emplo3 er. hall not r ·las:-.ify mployee,. or (luti ,. of th 

o -eupati n~ 1 erform cl by employee. or nga · in an, ' oth r ."ubterfugc to clef<: at the purpo ·e of th \ct. 

SEc. '5. Each employer ·hall po ·t in 011 I i 'llOllS rla e. ·, acce. ·sible 

to employ e , full co pie -. of thi ·· d . 

EC. 6. Ev ry emplo rer hall mak rea. onable proYision for the 

·afet and health of hi · employe s at the place and ~lnring the hours 

of th ir employment. 

ARTICLE VII- ODE Ao:.vn. ·r TRATI -x 

To further effectuat the poli ie. · of th Act, a Code Authority i ~ 

h reb: con titutecl to a imini ter, npervi 'e, anc1 prom t . the performance of the proYi ··ions of this Co l . E TION 1. Th Code Authority ~· hall ·on it f not 1 s." than five 

(") anclnot mor than nine (9) members, five (5) of whom :hall b 

appointed by the Executive C nunittee of the A ~ociation. If any 

member · of the I ndustry, who pay thejr proportionat share of the 

xr en· of the adn1inistr.ation of the ode, but who are nomnembers 

of th A ·sociation, desire repre ·entation, they may 1 t by some fair 

m tho l ubject to the approval of the A lmini -trator one (1) member. Th Aclmini trator may appoint not over thr e (3) members 

with ut vote. 

E . :... . In order that th Cole Authority hall at all time.- be truly 

repr entative of the Industry and in other re. pects comply with the 

provi ion of the Act the Admini trator ma:v provi le u h hearings 

~ h may l em proper; and, thereafter if he hall fin l that the Code 

Auth rit} i not truly repre. entative or doe · not in other re pects 

· mply ''ith the provision. of the A t, may requir an appropriate 

m lification in the method of election of the od Authority. 

'E ·. 3. It is the intention of the Indu -try to k €'ep the Pre iclent 

informed a to the ob ervan · or nonob ervancc of thi." Code, and a ' 

to ,Yhcther th In lu try i taking appropriate tep · to effectuate the 

c1 clar c1 policy of the Act. Therefore, <?uch emRloy r . ha1l pr pare 

iUHl file with . uch per .. on or oro·anizati n a. th d ~ nthority ma r 

<lesignate, and at ·uch time. and in :-;lH:h manner a ma)T be pre-

. cribe l b~· the Code Authority (to b held a1 c1 n cl ·ubje t to the 

bmitation of Articl XI hereof), tati."tic · of I lant capacity. Yolmne 

of pro lu tion -volnm of ale. in unit. an l dollar. , nler recei\ l 

unfi1l <l onl r:::, number of mploye ;;.;, ,....,.acr rat s. employ earnino· , 

and hours of work. 

It is, howeYer, E'Xprel:- ly provided. th<lt th juri~cliction of the 

Co(1e uthoritv unller thi · ocl \ '('l' nn r mploy r i · limited to that 
250 

portion of the business and employment of such employer, which 

is within the Industry. 

SEc. 4. If the Administrator shall determine that any action of a 

code authority or any agency thereof 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 further consideration by such code 

authority or agency pending final action which shall not be effective 

unless the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

ARTICLE VIII-PRICES 

:Members of the Industry shall file with the Code Authority a 

complete schedule of price lists, terms, discounts, and conditions of 

sale, including points of delivery, for the products of the Industry 

within ten (10) days after the effective date of the Code; such price 

lists, terms, discounts, and conditions of sale, including points of 

delivery, may be revised only upon notice by registered mail to the 

Code Authority, and shall become effective on the tenth day after 

such notice unle s the Code Authority shall authorize a shorter 

period. The Code Authority shall immediately send copies of all 

price lists, terms, discounts, and conditions of sale, including points 

of delivery, so filed to all members of the Industry cooperating in 

the administration of this Code. Effective filed price li ts, terms, 

discounts, and conditions of sale, including points of delivery, shall 

be open to the inspection of the trade factors as each 1nay be 

concerned. 

Members of the Industry shall not sell their products at other 

prices or on other terms or conditions than set forth in their own 

price list. When any member of the Industry revises his price list, 

any other member of the Industry may revise his price li. t accordingly to become effective on the same date as the revised price list 

first filed. 

ARTICLE IX-CosT PROTECTION 

Costs shall be determined in accordance with the principles enumerated in an adequate cost system to be formulated by the Code 

Authority with the approval of the Administrator. The Code Authority shall with the approval of the Admini trator specify those 

items of cost which shall be allowable. It is understood that a member of the Industry may use any cost system approved by the Code 

Authority and the Administrator. 

ARTICLE X-CODE OPEN TO ALL EMPLOYEES 

:Members of the Industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to 

participate in the selection of the members thereof by assenting to 

and complying with the requirements of this Code. Each member of 

the Industry accepting the benefits of the activities of the Code 

Authority relative to the preparation and administration of this 
251 

<1< shall pn, · to th C 1 Anthorit r hi · pr >I orbm at . har of th 

amounts nee ..... ar o 1 fra. th . ·p n. -1' a. ~cm lliilf?:, analyzing 

and Jul>li:hino· :u h r p rt. · an l clata. hi proportwna hare 

nn 1j r . nch oth r , uitabl 

I r . · rib ant1 th \..ln in-

\.nn 'LF. ....... 1-D.\T ( . I·nm T'J'T L 

In :H1diti n to th inf rmation reqllire<l to b ~u l mitt 1 to th 

ocle ... \.ntbority, ther shall be furni:-.h 1 to Go\' rnmcnt agen ·1 e. · 

. u ·h -tati. tical' inf rmati n a. th ..A lmini:trator. ma r d rm ne · :-

~ar.r f r th pnrpo.· . r ·it c1 in e ti n; (a) of th e ... \.ct. 

Except a" >therwi. pro·d 1e l in th . .... C't. all :tn tj, ·tics data, , 11(1 

inf nna i011 filed in a' ·onlanre '"ith th provisions of tlw '~ocl . ·hall 

b · nficlential. 

The :::;tati ·ti lata, an l information of one mployer ~hall not l>e 

rev nl 1 to any ther mployer x pt that, for the purpo e of 

a lminist ring or nfor ing the provi ·ion: of thi od , the c1 

Anthority, by it luly authorized r rr .entatiY . ("ho hall not be 

in th mploy of any .employer affe·ted by thi Code) .-hall have 

a e . in -ummarized form to any and all tati. tic. data, and 

information that ma3 fnrnishe l in a cordan with the provi:ions 

f thi. · le. 

~\..un 'LE XII-~ OT TO ,_ ELL BEL >W CosT 

E THL ~ 1. :r o em p] oy r .-hall ·ell r ex han a any pro 1 uct of the 

Indu. try manufactur l by him at a pri e, r upon t rm. and ·onJiti n , 'lhich "ill re. ult in the cu:tomer paying for the good 

rec iY d le .., than th co. t th r eof to the eller~ d t rmine l in accor lane \Tith th metho l of o ting above de cribed; provi led, hmv Y r, 

that b. olcte merchandi 'e may be clispo e l of b ' any emrlo~er at a 

le er price . but only if . n h emplo Ter, not le.. than two (2 '"e k 

b f r 11 h eli .. 1 o. <ll has filed with the Co le Authority for imm ·-

diat tran mittal to all lirect competitor , a . tatement in writing 

etting forth an identifying c1 ·cription and quantit, r of uch merchnn<.li:e, an l proYided fnrther, that an. · member may m t the pn e 

ompetition of anv th r m mber " ·ho: o. t un l r thi. od rro-

,.-j:--ion are ]o ·er. 

E . 2. In ev nt th o 1e ..Auth ritv finds that any filed pri e 

" . ul<l an::-;e in tabilitv in th market, the ocl \..utho1·it ma)T r -

quir the mem r of the Indu try filing .-n ·h pri e to tabli h that 

.'U 'b ll'i do ,' 11 t inY h· a net r turn to .'11 h 111 mber le than 

hi · o.-t t1et rmine<.l pm· ··uant to cc· ion 1 above of thi \..rticle. 

l1 til su ·h filed pric' mH1 r crntiny i: h l(l Yiolativ of eti n 1 

nboYe, it may r emain in 0ff t. 

~\..RTit'LE XIII- T XF.\IR TRADE PR.\ 'TI 'ES 

nfnir pnv-ticr: :--ball b' cleem cl to be rra ·tic .. or a ·t whi h bv 

. u terfng:~. (·onr alm nt. mi. r pre. <:>JJtation . or by an} f rm £ li ·_ 

riminat1 n: re. nlt in sellino· b lmY pnuli h '(l }rice. . r in l ·e1nng 
252 

or misleading purchasers, or in misrepresenting the products of competitors. The follo"ing specific practices are examples of unfair 

methods of competition as defined above and shall be prohibited. 

SECTION 1. Unethical and false statements.-No manufacturer 

shall, through the medium of his catalogue, advertisement, or any 

other printed matter or by his representative, make any statement 

or inference reflecting upon the methods of business procedure of 

his competitor or make any false and misleading statements regarding the product or price of a competitor. 

SEc. 2. 001rwnercial bribe1·y.-No member of the Industry shall 

give, permit to be given, or directly offer to give anything of value 

for the purpose of influencing or rewarding the action of any employee, agent, or representative of another employer 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. Commercial bribery provisions 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 above defined. 

SEc. 3. S ec1·et 1•ebates.-The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether 

in the form of money or otherwise, or the secret extension to certain 

purchasers of special services, or privileges not extended to all purchasers on like terms and conditions. 

SEc. 4. Oonsignnwnts.-No ·manufacturer of Machine Knives shall 

carry this product in stock anywhere in the United States on consignment except in branch houses of his own or with his own agent 

and who shall be listed with the Secretary of the Code Authority. 

SEc. 5. Guarantee.-N o manufacturer shall replace or make allowances on any machine knives because of complaint against the 

quality of same on the part of the consumer, except after full examination of said knives by the manufacturer producing them, and then 

only when the manufacturer finds that the complaint is based on 

fair and rea onable grounds. Claims entered for faulty workmanship or material which are not reported within a reasonable time 

and until after the product has been largely consumed should not 

be allowed, but if any allowance is made it shall be upon the basis 

of the amount used. 

SEc. 6. Free service.-N o manufacturer shall render to any purcha er of any products, in or in connection with the sale of uch 

product, any unusual service or packing, unless fair compensation 

for such service or packing shall be paid by such purchaser. 

SEc. 7. Selling co1mnission.-N o manufacturer shall grant either 

a selling commis ion or dealer's discount to any concern or individual 

other than an established machine-knife dealer, jobber, salesman, or 

machine builder. An established dealer, jobber, or sale man is one 

who e bu iness it is to buy and re ell, or to sell, for a salary or com- mission, to buyers of machine knives; such dealers, jobbers, or salesn1en not being controlled or paid for their purchasing efforts by 

the user. 

SEc. 8. 111 ake-and-hold-orde?·s.-N o manufacturer hall make 

knives of special design to be carried in stock until called for by 
253 

the ClL tomer, unlc. s the en. tom r pla . with th manu fa turer a 

bona fide orcl r . p cifying the numb r of kni' c: anl c1 liv r clat , 

which deliY r.r <1at<' m11:t n t ex ed nin ty ( ) la. .. Thi proYisi n ball not 1 r 'T nt a r mbcr of the In ln. tr fr n manufa -

turing an 1 arry]no· a .t ·l a rca. ·onahl numb r of , I ial kniYe 

n to xc cl hY ntj (2 ) p r ent in e.·cc · f th number order d 

for the I urpo.·c of 1· llu ·ing tlw pro 1u -ti n t f ·u ·h kniY .. 

• E . 9. \.n .r eli 'Crimination b tw en pur ha r. b, th .·al of an r 

article h:Hino· a pnbli ·heel price, nt < ny ll'i below th ·ell r S 

pt bli h eel I ri e b) means of clir ct r indire t pri n ·e. sion. or 

by mean of any privil o·e n t extend cl t pnrchas rs gcn rally . 

.__ EC' . 10. \\ ithholling from or in ·crtin · in an in,·oi tatcn nt 

·"'hich make the inYoice a false r ·or 1, wholly or in part. of tl e 

tran.' a tion r pres nte I on the fa ' th reo£. 

E . 11. The ale r oil' 'rin,..: fol' . al of an. 1 rocluct of the 

~In chinc Ynif In lu tr~· un ler any form of o·mnante to th purcha. cr or pro. pe tiY pnrcha ' r against ither adYan or I rot rtion 

again t the d clin in the rric of . aid proclu t. 

E . 12 . ... \..n deviation from the .tanclard a. et forth in thi . 

• \..rticle XIII, or from :1113 amcnclm nt thereto, by an~T 1 wmber of 

the Indn tr} either <lirectly or inlirectly throuo·h hi. R o· nt: ·hall 

be ILicl reel an unfair meth <1 of ompetition ancl a Yiolatjon of 

th ~ ocle by ~ nch member. 

Ann 'LE ~ riY-ExPOHT ' ALES 

The prunswns of thi Co<le on ·erni11g sales ·h all not apply to 

direct export al of any proclu ·t. The term ' export~ hall inlucie hi pment to foreign ountrie and to the territoric.- and 

po._·._es ion of the nitecl Stat . . 

\.RTJ LE X \ T-I".'\IPOHTS 

Th ode .. A.nthor.ity . hall . ecure current information con rninO' 

the competition in clom .... ti mark t of jmportecl ~Iachin ICnife 

anll .... Ub ed teel Procluct and if it .-hall find tha t ~· n ·h 1 ro lu ts 

are beino· importe l into th rnitetl State ~ in nb tantinl quantities 

or increa ·ing rati to rl mestic production ancl on .-u h term. or 

under nch concliti 11. ... a t render ineffectiYe or erion.Jy to en 1an ·er 

th maintenance of thi Olle it hall make complaint o th Pre -

iclent I ur nan to the proYi. ·ion.' of Section ; ( ) of the ~\.. t and 

petition for uitable re. tri ·bon.- on the importation of sn h ~lachine 

J(niYe anti ~ lli c1 Rte I Pro ln 'b. 

ARTI 'LE XYI-~ ".'\mxo:MEXT AXD Annrrr ~ ~ 

Such of the pr y], ion · of thi ~ le. a.- ar not require 1 by the 

Xational In<ln.-trial Re 'OYery A· t be incln 1 1 h r in, may, w·ith 

the approYal of the A lmini 'trc t r. b mo lifie 1 or eliminate l a 

changed ir mn tan e r exp ri n ma:r in 1i ·at Thi o 1 i 

inten 1 d to a ba. ic code nntl ~ tu 1y f the tra 1 pra ·tice .~ of the 

1Iachin Knife Indu try will be · ntinuell by th ocl Auth rity 
254 

of the Machine l{nife Industry with the intention o£ submitting 

from time to time, to the Administrator for approval, additions to, 

or revisions of this Code applicable to all employers in the ~fachine l{nife Industry. 

ARTICLE XVII-GENERAL PROYISIONS 

SECTION 1. Pursuant to subsection (b) of Section 10 of the N ational Industrial Recovery Act, the President of the United States 

may from time to time cancel or modify any order, approval, license, 

rule, or regulation issued under Title I of said Act. 

SEo. 2. Effective date.-This Code shall become effective on the 

tenth day after its approval by the President. 

Approved Code No. 263. 

Reglstry No. 1331-1-01. 

0