Approved Code No. 347-Supplernent No. 13 Registry No. 1312-06 

NATIONAL RECOVERY ADMINISTRATION 

l 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

WATERPOWER EQUIPMENT 

INDUSTRY 

(A ·Division of the Machinery and Allied Products Industry) 

~ 

AS APPROVED ON JUNE 7, 1934 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - • • - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.O., 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, 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. 

OleYeland, 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. 13 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WATERPOWER EQUIPMENT INDUSTRY 

As Approved on June 7, 1934 

ORDER 

SuPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE WATERPOWER 

EQUIPMENT 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 Waterpower Equipment 

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 following conditions: (1) that the provisions of 

Article VII, Section (a), insofar as they prescribe a waiting period 

between the filing with the Code Authority (or such agency as may 

be designated in 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, and (2) that the provisions of Article VIII, Sections 6 to 9 inclusive, be and they hereby are stayed for a period o£ 

fifteen (15) days; then to become effective unless I, by my further 

order, otherwise direct; within which time cause may be shown, if 

any there be, why the above provisions should not become effective; 

65902°----657-51----34 (1) 
2 

and that the Temporary Code Authority send notice of the stay 

of these provisions and of the opportunity to show cause why 

they should not become effective to all known employers of the 

Subdivision. 

HuGH S. JoHNSON, 

Admiwistrator for Industrial R ecovery. 

Approval recommended: 

A. R. GLANCY, 

Division Administrator. 

wASHINGTON, D.C., 

ur~e 7, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The TV hit'e House. 

SIR: This is a report on the Supplemental Code of Fair Competition for the Waterpower Equipment Subdivision of the :Machinery 

and Allied Products Industry, a Public Hearing on which was 

held in Washington, D.C., on Dec-ember 8, 1933, and reconvened 

on December 21, 1933. The Hearing was conducted in full accordance with the provisions of Title I of theN at_ional Industrial Recovery Act. 

GENERAL STATEMENT 

The vVaterpower Equipment Subdivision, being truly representative of the manufacturers of the products defined in Article II 

of the Supplemental Code, has elected to formulate and submit a 

Supplemental Code of Fair Competition as provided in the second 

paragraph of Article I of the Code of Fair Competition for the 

Machinery and Allied Products Industry, approved by you on the 

seventeenth day of March, 1934. 

The Waterpower Equipment Subdivision means the business of 

manufacturing for sale, selling, erecting and/or designing equipment 

or machinery as enumerated in detail in the Supplemental Code 

attached hereto. 

ECONOl\'IIO EFFECYr 

Tllis Subdivision has been severely affected by the recent depression. This is evidenced by the steady decline in annual sales since 

1929. In 1933 sales were approximately 60% below the 1929 level, 

declining from $5,000,000 in 1929 to $2,000,000 in 1933. 

Estimates of approximate employment, excluding office employees, 

indicates that the employment declined from 1,600 persons in 1929 

to 509 persons in the second quartPr of 1933, and that this level had 

increased to 582 persons as of October, 1933. 

Man-hours show a trend similar to employment. In 192'9 manhours amounted to approximately 78,240. Thereafter they declined 

to a minimum of 14,541 man-hours in the first quarter of 1933 or 

81%. After this period man-hours increased again. Estimated 

man-hours, as of October, 1933, were approximately 19,788 based on 

34 hours worked, consequently the 40-hour week provided in the Code 

will probably cause little further employment here. 

The wage provisions for the Subdivision, which is operating under 

the Code for the Ma.chinery and Allied Products Industry, provide 

that employees engaged in plant operations shall be paid as follows: (1) in cities of more than 50,000 population and their immediate vicinity, 40 cents per hour; (2) in cities of more than 10,000 

but not more ·than 50,000 population and their immediate vicinity, 

(3) 
4 

which cities are not in the immediate vicinity of a city of more 

than 50,000 population, 38 cents per hour; (3) in cities of 10,000 

population or less and their immediate vicinity, which cities are not 

in the immediate vicinity of a city of more than 10,000 population, 

36 cents per hour, except that employees engaged in plant operations 

in all localities in the states of Virginia, North Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, :Mississippi, Arkansas, 

Louisiana, Texas, and Oklahoma, shall be paid not less than 32 cents 

per hour. 

When females do substantially the same work as males or replace 

males, they shall receive the same pay. However, no female employee shall be paid less than 871!2% of the proper rate for the 

locality in which employed. 

Office boys and girls and apprentices shall be paid not less than 

80% of the minimum wage. 

Employees other than those engaged in plant operations shall 

receive not less than $15.00 per week. 

Estimated number of faotory worlcers receiving ~ess thO/It designa-ted, hourZy 

rates 

Proposed 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 

25.5 

2L 9 

18. 2 

14,0 

138 

119 

99 

76 

Based on the distribution as of June 15, 1933, and on the specified 

percentages of the number of factory workers receiving less than the 

designated rates shown in the above table, the adoption 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 favorable 

conditions, not exceed 5% assuming only upward adjustment in the 

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

requirements. 

The Code provides that no person under 16 years of age shall be 

employed in this Subdivision. 

RESUME OF SUPPLEMENTAL CODES 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Subdivision as used in this Supplemental Code. 

Article III provides for the adoption of the employment provisions of the National Industrial Recovery Code of the Machinery 

and Allied Products Industry, as approved by you, and as from time 

to time amended. 
5 

Article IV provides for the adoption o:f Articles II, VI, VIII, and 

IX of the National Industrial Recovery Code of the Machinery and 

Allied Products Industry, in accordance with the conditions of this 

Article governing their adoption. 

Article V provides for the establishment of a Code Authority and 

defines its powers and duties. 

Article VI provides for an accounting system and methods of cost 

finding and/ or estimating. 

Article VII provides for methods of setting up, revising and 

filing pric.e lists and discount sheets and terms of sale and payment. 

Article VIII sets forth trade practices for the Subdivision. 

Article IX defines and covers sale for export. 

Article X. This Supplemental Code and all the provisions thereof 

are expressly made subject to the right of the President, in accordance with Subsection (b) of Section 10 of the Act, from time to time 

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

issued under said Act. Provision is also made that modifications 

may be submitted by the Code Authority to the Administrator for 

approval. 

Article XI provides means for withdrawal of this Subdivision 

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

Article XII. No provision of this Supplemental Code shall be 

so applied as to permit monopolies, or monopolistic practices, or 

to eliminate, oppress, or discriminate against small enterprises. 

Article XIII states the effective date of this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me 

on said Supplemental Code having found as herein set forth and on 

the basis of all the 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 eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive 

capacity of industries, by avoiding undue restriction of product:on 

(except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, 

by improving standards of labor, and by otherwise rehabilitating 

industry. 

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

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

(c) The Supplemental Code as approved complies in all respects 

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 
6 

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

applicant association is an industrial association truly representative of the aforesaid Subdivision; 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 o:f 

said Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, provided that certain provisions relating to price publication 

and trade practices are stayed. 

Respectfully, 

HuGH S. JOHNsoN, 

A dministrat01'. 

JUNE 7, 1934. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

WATERPOWER EQUIPMENT INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supplemental National Industry Recovery Code for the Waterpower 

Equipment Subdivision of the :Machinery and Allied Products Industry, and together with the National Industrial Recovery Code of 

Machinery and Allied ·Products Industry, shall be the standard of 

fair competition for this Subdivision, and shall be binding on every 

employer therein. 

ARTICLE II-DEFINITIONS 

"Applicant" means the Waterpower Equipment Association, a 

trade organization, which organization is truly r epresentative of 

this Subdivision, all members of which are engaged in the business of manufacturing for sale, selling, erecting andjor designing 

the products of the vVaterpower Equipment Subdivision of the 

Machinery and Allied Products Industry. 

"lndttstry" means the Machinery and Allied Products Industry, 

as defined in its National Industrial Recovery Code as- approved 

by the President, and as such definition may from time to time be 

amended. 

"Subdivision" means the Waterpower Equipment Subdivision of 

the Machinery and Allied Products Industry as defined and set 

forth in paragraph (36), Article II of the National Industrial Recovery Code of the Machinery and Allied Products Industry as 

follows: 

"(36) Waterpower equipment subdivision means the business of 

manufacturing for sale, selling, erecting and/ or designing equipment 

or machinery as enumerated below: 

" (Group 1) Hydraulic turbines, water wheels, impulse wheels~ gov- ernors, governor pumping systems including pressure tanks and 

dump tanks, flume manholes, relief valves, energy absorbers, free 

discharge valves, drain valves, special and automatic valves; also 

cast iron or cast steel or steel plate or structural steel (riveted or 

welded) spiral casings, pressure casings, speed rings, turbine wicket 

gates, head covers, curb plates, throat rings, bearings, bearing housings, pit liners, draft tubes and liners, short steel penstocks and intake pipes not exceeding thirty-five (35) feet in length; all of the 

above for water power plants. 

"(Group 2) Turbine shut-off valves, bypass valves, butterfly valves, 

large and special gate valves, needle valves, cylinder valves, conical 

65902°-657-51-34-2 (7) 
8 

valves and spherical valves for water power plants. This Group 2 

shall include only such valves and fittings, including parts therefor 

or for their servicing, as are made by an employer in this Subdivision as a part of the products thereof for water power plants only, 

or as a separate assembly peculiar to such products. 

" (Group 3) Head gates, crest gates, sluice gates (except such sluice 

gates of cast metal construction, in no event of more than ten (10) 

feet diameter opening, as are normally produced and sold by members 

of the Valve and Fittings Manufacturing Industry), bypass gates, 

trash racks, rack rakes, lock gates, bear trap gates and modifications 

thereof, roller gates, roller sector gates, drum gates, vertical lift 

gates, vertical lift sector gates, taintor gates, taintor gate valves, 

cylindrical valves, filler gates, automatic gates, fiashboards manually 

or antQ'Tiatically operated, of cast and/or fabricated steel plate construction together with hoists, operating machinery and automatic 

control equipment therefor. (Structural steel plates, shapes and 

bars included in the products of this Group 3 may be sold, fabricated 

and erected under the code of the Structural Steel and Iron Fabricating Industry, or the code of the Steel Plate Fabricating Industry, 

by employers in either of such industries who are not engaged in the 

production of other products in this Group 3.) 

"And other mechanical, plate and structural equipment including 

accessories and parts thereof applicable to groups 1 and 2 for water 

power plants and applicable to group 3 for water power plants, 

navigation dams, impounding dams, irrigation works, flood control 

works, water supply works including accessories, spare parts, repairs, 

replacement parts and parts thereof for all other water power and 

control purposes excluding Gantry crane hoists." 

" 0 ocle " means the National Industrial Recovery Code of the 

Machinery and Allied Products Industry as approved by the President, March 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 this Subdivision either 

on his own behalf or as an employer of labor. 

"The Act" means Title I of the National Industrial Recovery 

Act. 

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

"The Administrator" means the Administrator for Industrial 

Recovery. 

"Bas·ic Oocle 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 0 ode A utlwrity" means the Code Authority for any group 

or product classification within this Subdivision. 

"Publish" means to make available to all interested parties. 

ARTICLE III-EMPLOYMENT PROVISIONS 

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

Hours"· Article IV " Wa(J"es "· and Article V " General Labor Pro-

' ' b ' ' 
9 

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

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

ARTICLE IV-AnoPTION OF OTHER PROVISIONS oF ConE 

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

Article VI, "Administration", to the extent that they shall be applicable to this Supplemental Code as such or as it may hereafter be 

administered as an autonomous Code; Article VIII, " Modifications 

and Termination"; and Article IX, "Withdrawal", are hereby 

made a part of this Supplemental Code, with the same effect as if 

they were written in this Supplemental Code. 

ARTICLE V-AnMINISTRATION 

(a) A Code Authority for this Subdivision is hereby constituted 

to administer, supervise and facilitate the enforcement of the Code 

and of this Supplemental Code in the manner and to the extent 

provided in the Code and in this Supplemental Code. 

(b) During a period not to exceed sixty ( 60) days following the 

effective date and pending the election of the permanent Code 

Authority, the Board of Managers of the Applicant shall constitute 

a temporary Code Authority. 

(c) The Applicant shall, by written notice sent by registered mail 

to ali employers known to the Applicant, call a meeting of employers 

to be held within sixty (60) days after the effective elate for the purpose of adopting procedural rules and regulations for the election, 

organization and operation of the permanent Code Authority and 

electing a permanent Cod.e Authority which shall consist. of seven 

(7) members. The Administrator may, in his discretion, appoint 

one additional member (without vote and without expense to the 

Subdivision). The permanent Code Authority so elected and appointed shall supersede the temporary Code Authority. 

(d) Any employer shall be entitled to vote at the· election of the 

permanent Code Authority and at other meetings of employers and 

share in the benefits of the activities of Code Authority and participate in any endeavors of Code Authority in the preparat_ion of 

any amendments or revisions of, or additions or supplements to this 

Supplemental Code by paying or agreeing to pay, as and when 

assessed, his proper pro rata share of the reasonable cost of creating 

and administering this Supplemental Code as determined by Code 

Authority. The cost of creating and administering this Supplemental Code shall be pro-rated among the employers in the ratio of 

the number of Class B votes to which they are entitled as determined 

in paragraph (e) of this Article V. 

(e) There shall be two classes of votes, 9lass A votes and Class 

B votes. Each employer, entitled to vote as provided in Section 

(d) of this Article V, shall have one Class A vote. Each such employer shall have one Class B vote for each $25,000.00 or major fraction thereof of the yearly average net sales (billin~s) f.o.b., the employer's works, of the products of the Subdiviswn, sold for use 

within the several states of the United States and the District of 

Columbia, by the employer during the five calendar years preceding 
10 

the Subdivision meeting; but any member who would not be entitled to any Class B votes under the foregoing provision shall have 

one Class B vote. 

At the meeting for the election of a permanent Code Authority 

three members of the Code Authority shall be elected by Class A votes 

only, and four members by Class B votes only. E ach employer 

present or represented at the meeting shall be entitled to cast one 

Class A vote for each of the vacancies to be filled by Class A votes 

and shall be entitled to cast the number of Class B votes to which 

the employer is entitled for each of the vacancies to be filled by Class 

B votes. The nominations and ballotings for members elected by 

Class A votes shall precede the nominations and ballotings for members to be elected by Class B votes. The three persons receiving 

the highest number of Class A votes and the four persons receiving 

the highest number of Class B votes shall constitute the permanent 

Code Authority. Any subsequent vacancy in the members elected 

by Class A votes shall be filled by Class A votes only, and any subsequent vacancy in the members elected by Class B votes shall be 

filled by Class B votes only. 

All othe1· action by employers at any Subdivision meeting shall 

require for approval the affirmative majority Class A vote of employers represented at the meeting and the affirmative majority Class 

B votes of the employers so represented, except in those cases where 

a larger affirmative percentage of votes of each class is expressly provided in Article VII (b), Article X (b) and Article XI of this 

Supplemental Code. 

Voting at any Subdivision meeting shall be by employers entitled 

to vote as provided in section (d) of this Article V or by an authorized representative of such employer or by proxy duly executed and 

filed with the Code Authority. At least one (1) day before the meeting of employers for the election of the permanent Code Authority 

and at least one (1) day before the holding of any Subdivision 

meeting, each employer desiring to cast more than one Class B vote 

at the meeting ·about to be held shall furnish to the Code Authority 

the information required to determine the number of such employer's 

Class B votes in such detail and in such form as the temporary or 

permanent Code Authority may require. The temporary or permanent Code Authority shall have full power to dispose of all questions 

arising in connection therewith a·nd to determine finally and conclusively the number of Class B votes of each employer. 

(f) Employers in this Subdivision having a common interest and 

common problems may be grouped by Code Authority for administrative purposes. There shall be a group Code Authority approved 

or al?pointed by Code Authority for each such group. 

(g) If formal complaint is made to Code Authority that provisions 

of this Suppiemental Code have been violated by any employer, 

Code Authority or the proper Group Code Authority may to the 

extent permitted by the Act cause such investigation or audit to be 

made as may be deemed necessary. If such investigation is made 

by Group Code Authority it shall report the result of such investigation or audit to Code Authority for action. 

(h) The Code Authority may appoint a Trade Practice Committee which shall meet with the Trade Practice Committees ap-
11 

pointed under such other Codes as may be related to the Subdivision for the purpose of formulating fair trade practices to 

govern the relationships between production and distribution employers under this Supplemental Code and under such other,s to 

the end that such fair trade practices may be proposed to the 

Administrator as amendments to this Supplemental Code and such 

other codes. 

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

representative of the members, the Administrator may prescribe 

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, he may 

require an appropriate modification in the method of selection o:f 

the Code Authority. 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority shall cause to be formulated an accounting 

system and method,s of cost ·finding and/ or estimating capable of 

use by all employers of 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. 

ARTicLE VII-PrucE LisTs 

(a) If and when Code Authority determines that in any group 

of the Subdivision it has been the generally recognized practice to 

sell a specified product on the basis of net price lists, or price lists 

with discount sheets, and fixed terms of sale and payment, each employer engaged in the manufacture of such product shall, within 

ten (10) days after notice of such determination, file with Code 

Authority a net price list, or a price list with discount sheet, as 

the case may be, individually prepared by him, showing his cur-· rent prices, or prices and discounts, and terms of sale and payment 

for such specified product, and Code Authority shall immediately 

publish and send copies tl}.ereof to all known employers who are 

cooperating under this Supplemental Code as described in Article 

V (d) and engaged in the manufacture of such specified products. 

Revised price lists and/ or discount sheets and/or terms of sale 

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

Authority by any such employer, to become operative upon the date 

specified therein, but such revised lists and/ or discount sheets and/ or 

terms of sale and payment shall be filed with the Code Authority ten 

(10) days in advance of the operative date. The Code Authority 

or Group Code Authority may establish a shorter period at any time 

provided no revisions then waiting operative date shall be affected 

thereby. Copies thereof, with not1ce of the operative date specified, 

shall be immediately published and sent to all employers cooperating 

under this Supplemental Code as described in Article V (d) , and 

engaged in the manufacture of such specified products, any of whom 

may file, if he so desires, revisions of his price lists and/ or discount 
12 

sheets and/or terms of sale and payment, which shall become effective upon the date when the revised prlice list and/or discount sheets 

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

(b) If and when 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 for such specified 

product should be put into effect in such group, then each employer 

in such group shall within twenty (20) days after notice of such 

determination, file with Code Authority net price lists or price 

lists and discount sheets, with fixed terms of sale and payment, showing his prices and discounts and terms of sale and payment, and 

such price lists and/or discount sheets and/or terms of sale and 

payment may be thereafter revised in the manner hereinbefore 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 pnce list basis, as provided in this Section unless affirm uti ve consent to such determination is given by the concurring affirmative vote of at least 66%% of the whole number of Class A votes 

and 66%% of the whole number of Class B votes of all employers 

who are at the time cooperating under this Supplemental code as 

described in Article V (d) and who are engaged in manufacturing 

such product. The eligibility requirements and methods of such 

voting shall be the same as is provided by Article V. 

(c) No employer shall sell directly or indirectly by any means 

whatsoever, any product of the Subdivision covered by provisions of 

this Article VII 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 VIII-TRADE PRACTICES 

(1) No employer shall offer, make or extend to any customer or 

any prospective customer for the purp'ose of influencing a sale (a) 

any special terms of payment, service or privilege not made, offered 

or extended to all customers or prospective customers of the same 

class, or (b) any secret payment or secret allowance of a rebate, 

refund, commisswn, credit, unearned discount or excess allowance 

whether in the form of money or otherwise. No employer shall 

pay or promise to pay money, or give or promise to give any valuable 

thing to any agent, fiduciary or representative with or without the 

h11owledge of his principal in connection with any sale to his principal. This provision shall not be construed to prohibit free and 

general distribution of articles commonly used for advertising ex1 'See paragraph 2 of order approving this Code. 
13 

cept so far as such articles are actually used in violation of the 

provisions of this paragraph. 

(2) No employer shall untruthfully advertise, represent, or market any product with intent to deceive or mislead prospective 

purchasers. 

(3) No employer shall publish or circulate unjustified or unwar- ranted threats of legal proceedings, which tend to have the effect 

of harassing competitors or intimidating their customers. 

(4) No employer shall reduce a quotation once submitted unle s 

a change in the purchaser's plans require it and then only consistently with the change made. 

(5) No employer shall accept a contract or order to carry out 

the field erection of any of the products of the Industry included 

in Groups 1 and 2 of the definition under the subheading "Subdivision" of Article II, except for the furnishing of erecting engineers at a per diem rate plus living and traveling expenses. 

(6) No employer shall accept a contract assuming responsibility 

for consequential damages. The term "consequential damages" is 

defined to mean any damages (1) other than, or in excess of, the 

reasonable cost of repairing or replacing any defective machinery, 

equipment or parts furnished by the employer under the contract, 

or (2) other than stipulated, liquidated damages relating to delivery, 

completion and/ or performance. Nothing contained in this paragraph (6) shall be construed to limit an employer's legal liability 

for negligence. 

(7) No employer shall furnish directly or indirectly to any purchaser and/or his agents (except the United States Government for 

navigation, national defense or similar United States Government 

enterprises) detailed shop drawings of the products of this SubdivisiOn without filing a statement of such proposed transaction 

with the Code Authonty which may approve, or with the approval 

of the Administrator, ma.Y disapprove the transaction within twenty 

(20) days by written notice to the employer. 

(8) No employer shall furnish information or drawings for appraisal purposes without adequate charge for the same, but information not requiring the searching of records, preparation of engineering data or estimates and/or other work involving appreciable cost 

to the employer, may be furnished without charge. 

(9) It shall be an unfair trade practice to indulge in destructive 

price. cutting. 

ARTICLE IX-SALES FOR EXPORT 

The provisions of this Supplemental Code concerning pncmg 

and marketing (Articles VII and VIII) shall not apply to direct 

export sales of any product. A 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 all 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 as export when any employer 

is engaged in the Subdivision in such territory or possession. 
14 II I II 11111@ \1~1~~~~~~ ~ 1\ 1\i~ ~ ~limlllll Ill I I 

3 1262 08584 2184 

ARTICLE X-MODIFICATIONS AND TERl\HNATION 

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

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

rule or regulation issued under Title I of the Act. 

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

Supplemental Code, proposed by Code Authority, and authorized by 

the concurring affirmative vote of at least 66%% of the whole number of Class A votes and 66%% of the whole number of Class B 

votes of all employers who are at the time cooperating under this 

Supplemental Code as described in Article V (d), shall be in full 

force and effect upon approval by the Administrator. The eligibility of voters and the method of such voting shall be the same as 

provided in Article V hereof. 

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

on such date prior thereto when the Act shall be repealed or the 

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

has ended. 

ARTICLE XI-WrTHDMWAL 

Upon thirty days' notice to the Basic Code Authority and to the 

Administrator, this Subdivision may, upon the concurring affirmative vote of at least 6u%% of the whole number of Class A votes and 

66%% of the whole number of Class B votes of all employers who 

are at the time cooperating under this Supplemental Code as 

described in Article V (d), withdraw from the jurisdiction of the 

Basic Code Authority. The eligibility of voters and the method 

of such voting shall be in accordance with the provisions of Article 

V hereof. After and in the event such withdrawal is accomplished 

this Supplemental Code, together with the provisions of the Code 

shall become and be the sole code governing this Subdivision, and 

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

sole Code Authority and shall perform all the functions with respect 

thereto. 

ARTICLE XII-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is not 

designed to promote 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 of the Act. 

ARTICLE XIII-EFFECTIVE DATE 

\ 

This Supplemental Code shall become effective and binding on all 

persons engaged in the Subdivision on the eleventh day after its 

approval. 

Approved Code No. 347-Supplement No. 13. 

Registry No. 1312--06. 

0