Approved Code No. 347-Supplement No. 16 Registry No. 1312-03 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

STEAM ENGINE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 11, 1934 

WE DO OUR PART 

UNIV. OF· FL UI. 

ta" o= . - ~ --

U.8. DEPOIIITOIW 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

V 
This publica ion is for sale by the Superintendent of Documents, Gornrnmcnt 

Printing Office, Washington, D .C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRI T 01''FICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Go..: 504 P ost Office Building. Birmingham, Ala.: 257 Federal Building. 

Boston, lass.: 1 01 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Buildino-. Charle ton, S. C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. leYeland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Comm.ercc Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonv ille, Fla..: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 11G3 South Broadway. Loui ville, Ky.: 40 Federal Building. 

\.1emphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. Kew Orleans, La.: Room 225-A, Customhouse. 

-ow York, N.Y.: 734 Customhouse. 

Torfolk, Va.: 406 East Plume Street. Philadelphia, Pa.: 422 Commercial Trust Building; 

Pittsburgh, Pa.: Chamber of Commerce Building. P ortland, Oreg.: 215 New Post Office Building. St. Louis, .fo.: D06 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash .: 809 Federal Office Building. 
Approved Code No. 347-Supplement No. 16 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

STEAM ENGINE MANUFACTURING INDUSTRY 

As Approved on June 11, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE STEAM ENGINE 

MANUF ACTORIN G 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 Steam Engine Manufacturing Subdivision of 1\1achinery 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 VIII, Section (a) insofa r 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. . 2. That the provisions of the second paragraph of Article VIII, 

Section ( d) be and they hereby are stayed pending the submission 

of satisfactory evidence concerning distribution of the products of 

the Subdivision to the Administrator. 

3. That the provisions of Article IX, Sectlon 5 to 10 incln. i ve; 

be and they hereby are stayed for n period of fiftR.e.n ( 15) days; 

06507 °-657-DS- -34 (1) 
2 

ffo ·ti· twl<.•:---j I, by my :furth r r lcr 

dir ct · witl in which i11w ·au. m y b .:h Tn, if any tl r b , 

why tit . bo · pr , i. ion~ ·~lwnl<l not I omc ff ctiY · an l that he 

T rnpurury )cl ~ nth rity ncl n tice of the . ay of th ~c pro-

"i · on anll f th op1 ortunit.y to h w cnu e wh. h . · ~h nl 1 not 

bee m ff iY t all lrno \ n 1111 loy r of tlw 'ubdiYi. ion. 

I I Ci I . J IL T • • ; 

Adniini traio-r for lndw-;t,,ial RecOVt,l'y. 

11 roval re ommenc1 cl : 

. R. LA.i:T ·y 

Dii i ion Adnu'.nistratm·. 

w IDNG ;.:- D .. 

June 11, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

Srn: This report relates to the Supplemental Code of Fair Competition for the Steam Engine Manufacturing Subdivision of Machinery and Allied Products Industry as proposed by the Steam 

Engine :Manufacturing Association. 

A public hearing was held in Washington, D.C. on December 

4, 1933 and reconvened on December 21, 1933. The public hearings 

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

National Industrial Recovery Act and all interested persons were 

given full opportunity to be heard. 

GENERAL STATEMENT 

The Steam Engine 1\1:anufacturing 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 in the Code of Fair Competition for the 

Machinery and Allied Products Industry, approved by you on the 

seventeenth day of March, 1934. 

The Subdivi ion includes the design, manufacture, contracting for 

er subletting the manufacturing for the sale of reciprocating steam 

engines, including spare, repair and replacement parts thereof for 

land and marine use, and includes all those so engaged; provided that 

the Subdivison shall not include locomotive and automotive types 

or spare, repair and replacement parts thereof. 

Statistical material relative to production and en1ploy.ment for this 

Bubdivison has been submitted in the code application by the Steam 

Engine Manufacturers' Association. This Association claims to 

represent 95 per cent of the entire Subdivision measured by dollar 

volume of busine s. Annual sale a reported by the Association, reached a peak in 

1930. Sales in 1932 had dropped to less than one-half the 1930 level, 

or from $3,450,000 in 1930 to $1,370,000 in 1932. Invested capital 

and production capacity ha,e remained constant. 

E timates of approximate employment for the entire Subdivision 

submitted by the Trade Association indicate that employment declined from 1~700 in 1930 to 895 in 1933, or 47.4 per cent. The 1933 

employment i 45.8 per cent below the 1929 level of 1,650 wage 

earners. 

No figures are available on the full-time hours per week for the 

entire Subdivi ion. According to data. compiled from National 

Recovery Admini tration questionnaires from a sample of the Subclivi ion, the a, erage working time in June, 1929, was 10 to 11 hours 

per day; in June, 1933, 9 to 10 hours per day; and in October, 1933, 

8 to 9 hours per day. 

Average hour per week were reported to be 57.8 in June 1929; 

39.1 in June, 1933; and 38.D in October, 1933. In October 1933~ 

the average hour. wer 32.7 per cent les.. than the June, 1929 average. 

(3) 
4 

he cfftct f th JO-hon· pr vi i m with p1 du tion at 1nor norn al 

J y 1 mn 1 1J e · imat Ll on a a ·i: f otnl m:1n-h nrs per , eek in 

1D31 dfricl tl b r th 1 umL r f hon ·s pre rib l b3 the de. ince 

19:....9 nrnn-honr':. I r we cik d rlinecl. teadily r m :5 370 to a minimm 1 

of -,0 -1: in 193" (fir. t six month ) or approxima~ly G3.:.., p r c nt. 

i1 c th n m.an-hours in r a. <.1 t 43 01, 1· pre:entin<r a rise of 23 

p r ·ent. 

I f i i a ·umerl th, t th 4 4G5 av 'l'c.lg man-hour I •r we 1~ for 

19 1, ar rDpre. entativc ,f tho vohm of proclucti n f r that · a r 

ancl a. rea. onabl m 'H ·nr of man-hour r quir m n in a m r normal peri 1 the a op ion f th 40-hour \Ye k would r quir a f ~ c 

of ~l)pr . imatel. 1.200 employ""S r 07 p r cent of the HJ29 workin 

level. 

J{o,--r ev r ow·ncr to th imp ssibility of all empl e · of th ubdi ·i i n w rkino· th maximum 40 hour the average work w 1~ 

will be hort r say u6 as umed eff ti, e h ours and em1 lo:; m n orr pondino·ly ~reater viz: 1 350 worker will b r equired t pro ucv 

the 1931 volume. 

Th mini1nu111 ,yao- provision. propo eel for the 'ubd ivj i n whi h 

nre operatinrr under th Code of th0 Machinery and llie l Products 

Indu try ar based on a flat minimum hourly rate of 32 nt p er 

hour for the outh and the following city pouplation cliff rential::, 

for all other ~ections of the United State~: Ov r 50,000 population 

40 centl per hour; Over 10 000 to 50,000 pouplation, 3 ents per 

hour· 10 000 populati n and under , 36 cents per hour. 

In addition to the minimum wage r:1tes shown above, the C de 

provide that women engaged in substantially the same work a m n 

hall re oiYe the .~:m,e rate of pay as such men employees; that the 

minimum wa ere for w men employee engaged in plant opera-'-ion 

hall bl'.l not le s th· n 7.5 per cent of the propr.>r rate for the locality 

in which employed a p cified; and that the minin1um in the uth 

hall be not le s than 02 cents per hour. 

Di tributions of th number of factory worker r ·eiving la ifie l 

rate in the pecifie l area are not available. Consequently it i 

only po~ ·ible toe timat-e the approxi1nate number of fa t ry worker 

who will r ec ive the benefit of th l ropose l minimum hourly rates, 

r egardle . · of location on the ba i of th number of fa tory \Yorkers 

receiving 1° ·s tha n the cl •jgnat .cl hourly rate. a. f June 15 1933. 

B.·timat ·a ·111w1l;cr of fctc/ orv 1r-0rkcr s 1·cce ii: infJ lcs. than <l c>.·itnwtcd ltourly 

rat s 

rro posed minim um liouriy r tro 

H Ei~ !~ti~l~ :!J ........................................................... . 

I Di Lribulion or factory workers r r.eiving less tban the minimum, regardless of location 

Approximate per- cent 

11. Q 

10. l 

.3 

3.3 

Approximate oum• 

bor 

104 

8 

73 

29 
5 

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

percentage 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 1.5 per cent assuming only upward adjustment in the bracket~ below the 40-cent minimum and no change in 

man-hour requirements. 

RESUME OF SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental CodP-. 

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

Article III provides for the acToption 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. 

Article IV provides for the adoption of Articles IL 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 that no products of the Subdivision shall be 

sold or exchanged below a reasonable cost when the Code Authority 

determines that an emergency exists. 

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

price lists and discount sheets and terms of sale and payment. 

Artid-e IX sets forth trade practices for the Subdivision. Article X states that no provisions of this Supplemental Code 

relating to pricing and marketing shall apply to export sales as 

defined by the term " export" in this Article. 

Article XI provides that 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 XII. No provision of this Supplemental Code shall be 

so applied a. to permit monopolies, or monopolistic practices, or to 

eliminate oppre s: 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 

sail upplemental Code having found as herein set forth and on 

the basis of all the proceedings in thjs matter: 
6 

I fintl that: 

(a) ::,aid Supplemental C.xlc is well designed to promote the poli-

~ie-, nnd pnrp<>!:iPS of Title I of the National Industrial R0coyery 

..Ad, indt1Lling rcr1w,·al of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish tho amount thereof 

nnd will provide for tllf' general ,Yelfare by promoting the organization of industry for the purpose of cooperative action among the 

tra<111 groups, Ly inducing nnd nrnirrlaining united ~ct.ion of labor 

awl management nntler ndeqnatc goYernmentnJ ~unctions and supervi~ion. by eliminating unfair compctit.iYc practices, Ly promoting 

thr fullest possible utilization of the prec::ent proclnctive capacity of 

irnlu.~tr.ies, by a voiding undue restriction of production ( except as 

may be temporarily required), by jncre-using the consumption of industrial and ugricultural products through increasing purchasing 

powrr, by reducing and relieYing unemployment, by improvino-

;tandnn1s of labor, and by otherwise rehabilitating industry. 

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

<>mployees ~ and is not classified by me as a n1aj or industry. 

( c) The Supplemental Code as approYecl complies in all respect 

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

without limitntion Subsection (a) of Section 3, Subsection (a) or 'ection 7, and Subsection (b) of Section 10 thereof; and that the 

applicant association is an industrial association truly representative 

of the afor('\saicl Subdivision; and that said association imposes no 

i.neqnitable 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 desig11ed to and will not elim• 

innto 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 depriYed of the right to be heard prior to approval of said 

::upplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, proYided that certain provisions relating to pric~ publication, 

trade practices, u nd Article VIII, Section ( e) are stayed, as stated 

in the order. 

Respectfully, 

JuKn 11, 1034. 

I-I UGH S. JOHNSON 

.Ad11iinist·rator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE STEAM ENGI E :&1:ANUF _,.' CTURING INDUSTRY 

A DIVISION OF THE MACHINERY A1,D ALLIED PRODuC'TS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provi ions are established as a Supplemental Code of Fair Competition for the Steam Engine J\1anufacturing Subdivision of the :IYiachinery and Allied Products Industry, and together with the Code of Fair Competition for the 

Machinery and Allied Products Industry to which it is a Supplement shall be the standard of fair competition for this Subdivision, 

and shall be binding on each employer therein. 

ARTICLE II-DEFINITION 

"Applicant ' m0 ans the Stean1 Engine 1,1anufacturers As ociation, a trade organization, all members of which are engaged in the 

manufacture for sale of the products of the Steam Engine Manufacturing Subdivision of the Machinery and Allied Products Industry, which organization is truly representative of this Subdivision. 

"Industry" means the :Machinery and Allied Products Indu try, 

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

President, ].farch 17, 1934 and as such definition may from time to 

time be amended. 

"Subdivision" means the Steam Engine lvlanufacturing Subdivision of the :Machinery and Allied Products Industry as defined and 

set forth in Paragraph (33) of Article II of the Code of Fair 

Competition for the ~1achinery and Allied Products Industry as 

follows: 

"Steam Engine l\Ianufacturing Subdivision means the design, 

manufacture, contracting for or subletting the manufacturing for the 

sale of reciprocating steam engines including spare, repair and replacement parts thereof for land and marine use, and includes all 

those so engaged; provided that the Subdivision shall not include 

locomotive and automotive types or spare, repair and replacement 

parts thereof." 

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

and Allied Products Industry, as approved by the Pre ident, and as 

fr01n 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 p 0 rson engaged in this Subdivision of the 

Industry, either on his own behalf or as an employer of labor. 

(7) 
b 

8 

on , ho i emplo eel in th ub livi ion 

I of the J ati nal Indu trial R ov ry 

Pr ident m an th Pr ·i l nt of th l nit l .._ tate . dmini trator · mean· th dmini trator for In lu trial 

Re ov r 1 • 

Ba i d Auth rit mean the od Authority for the 

Machin r and lli d Proclu t Indn try as n titute 1 b. the Cod . Co 1 Auth rit ' means the Code Authority con ti uted for 

thi. ·ubdivi ion a provided b. th Code and b 

od. 

' Gr up ode Authority ' mean · the ode Authorit f r any 

group or classifi ation of products within this ubdivi ion, con t1- tuted und r the authority of Articl V o.f this Supplemental ode. 

" Publish " mea!l to make available to the public. ' Prin ·iple ' mean all es~ential charact ri tics. 

ARTICLE III-AooPTION OF EMPWYMENT PnovrsION F ConE 

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

Hour ' ; Article IV, " "\V ages " · an l Article V " General Labor 

Provi ions" are hereby made a part of this Supplemental Co :le, 

with the same effect as if they were written into this npplemental 

Code. 

ARTI 'LE IV- ADOPTION OF OTHER Pnovr IONS OF CooE 

The following Articles of the Code, viz: Article II, " Definitions ' , Article VI, "Administration", to the extent that they shall be 

applicable to thjs Supplemental Code as such or as it may hereafter be administered as an autonomous Code; Article VIII ," l\lfodification,s ancl Termination "; and Article IX, " "\Vithdra wal are 

hereby made a part of this Supplemental Code with the ame effect 

as if they were written into this Supplemental Code. 

ARTICLE V-ORGANIZATION AND AmurNISTRATION 

To a lminister and supervise, and facilitate the performance of 

the provision of the Supplemental Code, there i hereby established 

a " Code Authoritv." 

(a) The Code .Authority for this Subdivision hall n i t of 

(1) The Executive ommittee of the Steam Eno-in Manufacturer Association, con ·i ting of not Jess than four and n t mor 

than s ven members. (2) One additional member to be elected in an fair manner, 

with th approval of the Admini trator by mplo er in thj ubdivision not memb r of the Applicant, who ar oop rating in thi 

uppl mental Code, a described in ection ( e) her of, if o l sired, 

b su h n n-men1b r . . 

(3 ) Th clmini. trntor ma at hi. di er ti n appoint n additional m mber ( without ote and without xpen. e t the Sub-

<livi ion.) 
9 

(b) Each trade or industrial association directly or in irec~ly 

participating in the_ selec_tion or ac~iv~ties of the Code_ Authority 

shall (1) impose no 1nequ1table restnctions on memberslup, and (2) 

submit to the Administrator true copies of its articles of association, by-_laws, regulations, and any amendments when made thereto, 

together with such other information ns to membership, organiza- tion, and activities as the Administrn.tor may deem necessary to 

effectuate the purposes of the Act. 

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

representative of the Subdivision and in other respects co1nply with 

the provisions of the A"'t, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the 

Code Authority is not truly repre ·entative or does not in other 

re pects comply with the provisions of the Act, 1nay require an 

appropriate modification in the method of selection o:f the Code Authority, or any Group-Code Authority. 

The Code Authority maY. adopt rules and regulations for it. procedure and employ such personnel as it may deem necessary. 

( d) Any employer in this Subdivision shall be eligible for membership in Steam Engine :Manufacturers Association. 

( e) Any employer in this Subdivision shall be entitled to vote, 

subject to the provisions of Section (a) hereof, at the election of, and share in the benefits of the acfrvitivs of the Code Authority and 

may participate in any endea,ors of tho Code Authority, in the preparation of any revisions of, or addition. or supplements to, this Supplemental Code, by paying his proper pro rata share of the reasonable cost of creating and administering it, as determined by the 

Code Authority, such 'Ote o:f employers in this Subdivision to he 

determined subject to the provisions of Section (a) hereof, by a 

vote of employers who are at that time engaged in manufacturing 

such product, and are at that time cooperating in this Code, as 

above described in this Section ( e) of this Articie V, cast concurrently in each of the two following methods ( 1) by one vote of 

each employer. (2) By vote of employers weighted on the basis 

of one vote for each $25,000 of sales booked of such product of said 

employers who are at that time engaged in manufacturing ·uch 

products, made in the preceding fiv 0 calendar year , as reported to 

the Code Authority of this Subdivi ·ion. Each employer shall be 

entitled to at lea t one such vote. 

Except as otherwise provirlecl in thi. Cede, any action taken at nny 

meeting of the employers hall be by a majority Yote, cnst an 1 computed in each of the two methods hereinabo,e proYidecl. 

(f) Employers in this Subdivi ion hnving a common intere.t and 

common problem , may be grouped by Cede Authority for administrative purpos"s into various Group Subdivision or product clas ification. 

In each Group Subdivi ion, or produ"t clas ifirution, th 0 re may 

be a <;i-roup-Code Authority approved, or appointed, b,v Cede 

Authority. 

( o-) If formal complaint is made to Cod" Authority that provi~ions 

of this Supplemental Code lrn.ve been violated by any employer, the 

Code Authority or proper Groupf1odr• \.uthority may cau e ·uch 

investigation or audit to be made, to the extent permitted by the Act, 
10 

AnTI 'LE VI-A · TI A.1 D 

mad 

inve 

~ TI T 

nor 

Th Co le uthority . hall au ·e t be formulated an a counting 

tem and method of c . t findino- and/ or timatina apabl of u e 

by all emplo er of the ub livi ion. After . uch . y t m and m tho 1 

hay been formulat .1 full d tail oncerning th m shall be ma le 

available to all empl yer . Th reaft r all empl y r hall d t rmine 

:ind/ or stimate co t in accordance with the prin iple of . uch 

method, . 

ARTICLE VII-SELLING BEr.ow REA, oN ABLE Co T 

(a) ,vhen the Code Authority ha reason to believ that an emergency exi t a. to any product or products of the Subdivi ion and 

that the cau e thereof i destructive price-cutting uch as to render 

ineffe tive or eriou ly endanger the Rurpo e or the maintenance of 

the proYi ion of this Supplemental Code the ode Auth rity may 

cause an investigation of co ts and pricing to~ made by an impartial 

agency in order to determine the exi tence of the emergen y and the 

Code Authority may cause to be determined the lowe t rea onable 

co t of the product or pro luct of this Subdivision, such determination to be subject to uch notice and hearing a the Admini trat r 

may require. The Admini trator may a1 prove, di appro e or modify 

the determination. Thereafter during the period of emera ncy no 

employer of th Subdivision shall sell or offer to ell an produc of 

the Subdivision for which the lov,·e t r a onable co t ha been determined at uch price or upon uch term or condition of ale that the 

buyer will pay le~s th refor than th lowe t rea onable co t f u h 

products. 

,, hen it app ar that conditions ha,e chanacd, the de uthority 

upon its own initiative or upon the reque t of nn intere t 1 party, 

shall ·au e th cl termination to b reviewed. 

ARTI LE VIII-PRr E Lr T 
11 

fied product, and the Code Authority shall immediately publish ~nd 

send copies thereof to all known e~nplo3.7ers wl1;0 are cooperat~ng 

in this Snpplemcntal Code us described in Sect10n ( e) of Article 

V hereof. 

Revised price li ts and/or discount shee~s and/or t~rms of ~ale 

and payment for· such product may be filed from time to time 

thereafter with the Code Authority by any employer, but such revised price lists and/or discount sheets and/or terms of sale and 

payment shall be file~ with the Coc~e Authority te:r_i (10) _d ays_ in 

ndvance of the effective date. Copies of such revised price lists 

and/ or discount sheets and/or terms of sale and payment, :for such 

product, with notice of the effective date specified, shall be imme-

~iat~ly p~1blished and sent to ull know~ emp_loyers :17ho are c?ope~at1no- 1n this Supplemental Code ns described 1n Section ( e) of Article 

V0hereo:f, any of whom may file, if he so <lesires, to become effective upon the elate when the revi ·ed price list and/or discount sheet 

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

revisions of his price lists a11d/or discount sheets ano/or terms of 

sale and payment establishing prices or prices and discounts not 

lower or terms of sale and payment not more favorable than those 

established in the revised price list~ and/or discount sheets and/ or 

terms of sale and payment first filed. Nothing in the foregoing 

shall constitute a limitation upon the right of any employer to file 

revised lists fixing his own prices, discounts and terms of sale and 

payment, which prices and discounts may be either more or less 

favorable than those contained in any other price list, to be effective 

as provided in the first sentence of this paragraph. 

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

branch or group of the Subdivision not now selling its product on the 

basis o:f price lists, with or without discount sheets, with fixed terms 

of sale and payment, the distribution or ma1+eting conditions in said 

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

marketing conditions in a branch or group of the Subdivision 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 product should be put into effect in such 

branch or group, then each employer of such branch or group shall 

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

the Code Authority net price lists or price lists and discount sheets, 

containing fixed terms of sale and payment, showing hi current 

prices and discounts and term of sale and payment, and such price 

lists and/or discount sheets nnd/ or terms of sale and payment may be 

thereafter revjsed in the manner hereinabove provided; provided, 

however, that the Code Authority shall make no determination to 

place any product of the Subdivision (not now on a price list basis) 

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

VIII, unless the employers who are at that time engaged in manufacturjng such product and are at that time cooperating in this Code 

have given their affirmative consent. to such determination. The 

eligibility requirements, method and effect of such voting shall be 

the same as provided in Section ( e) of Article V. 

Each employer shall prepare and shall furnish the Code Authority 

for distribution with such number of copies of his price lists and/or 
12 

di unt sh t and terms oi al and paym nt a ode Authority 

DHl) pr rib . 

( ( ) 1111 lo r hall ell r in hr tly by any means 

what v r any pr lu t of th ub li i i n ov red by pr vi ion of 

thi -- Arti l "\ III a a pri r at li. unt · r n t rm of ale and 

pa_ m nt, cliff r nt fr m tho e pro i l c1 in hi · o, n ·urr nt n t pri e 

list ; or pri ·e li and li. count he t , pr i l d that nothing in the 

ab , hall pr vent an mpl er from adding t hi wn pri and/ or 

price li t :incl di c unt heet · b incr a ino- hi jol pri · to includ 

unu ual . ellin ·. enaineering er i ino- fin an ing, financial ri ·k . or 

oth r simila r pe ial charges (ex ept a pro,id cl in rticl II 

ab ve) pr vid d however, that in the v nt of an mploy r quotinoa hiah r pr· ce than the price publi hed in hi · own price li ·t and/ or 

pri e Ii t and di count beet to tak car f unu ual elling eno-ineerino- en icing financing, financial risk or oth r imilar pecial 

charge he hall not subsequently quote a lower pric on aid propective ale than that price fir t quoted except in ac ordance with 

r vi ed price li ts duly filed or unle s he imultancou ly ·liminate 

part or all of the unu ·ual engineering servicino- financing financial 

ri k. or other imilar special charges, for which a orr . ponding 

reduction only may be made. 

(d) No employ.er shall sell to, or through any broker, jobber, 

comn1ission ac ount or sales agency ( this L known in the trade as 

"pooled buyincr ) who or which is in fact an agent for an organization of indu trial consumers with the result that any industrial 

consumer secures a discount, allowance or price other than the discount, allowance or price provided for in the employers own cur. 

rent net price lists or price lists with discount sheets. 

Jo employer shall evade any provision of this Code by ellinO' 

to or through any dealer, jobber, distributor or other elling agency 

which shall fail to agree to re ell in accordance with the provi ions 

of Article VII, VIII and IX of this Supplemental Code. 

( ) \Vherever by the provi ions of this Article VIII an employer is or may be required to or permitted to file term · of ale 

and payment, such terms shall mean usual or standard terms, an l 

to cover any pecial and/ or unu ual terms definite formulae ·for 

determining uch special and/ or unusual term shall be filed. 

(f) If and when Code Authority shall determine that it i · undesirable to continue the filing of net price lists and/ or price li t 

with discount heets and/ or fixed terms of sale an l payment on 

any product in r e pect of which such filing ha hertofore been required, such filino- hall cease and the provi ion of thi Article 

hall not apply to uch product unle .~ and un il ode uth rit 

shall again determine that uch filing b made. 

ARTICLE IX-TRADE PRA TI ES 

Each of th following a ·t an l pra i , i c1 

to the be t int r . t of thi ubdivi i n and 

each is ther fore h reby d clar cl to b 

m thod of competition viz: 

m 1 to b inimical 

of the public, an l 

on titute, an unfair 

1. The er t fferin or making to any u~ tom er 

or repr entative of cu~tom r, of any la. ment or 

r bate, refund, ommi . ·ion, er dit, er dit .·ub.id 

ng nt fid nciary 

allowance of a 

unearned :I.is-
13 

count or excess allowance, whether in the :forn1 o:f money or otherwise1 or any special service or privilege, for the purpose of influencing a, sale. No eri1ployer of the Subdivision shall 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 jn relation to the busine:--s of the employer 

of such employee or the principal of such agent without the knowledge of such employer or principal, provided that no provision of 

this Code shall 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 hereinabove 

defined. 

r 2. Any discrimination between purchasers, by the sale of any article having a publishe_d price, at any price other than the seller's 

published price, by means of direct or indirect price concessions, or 

by means of any privilege not extended to purchasers generally. 

3. Untruthfully advertising, representing, or marking any product, with intent to deceive or mislead. 

4. The publishing or circularizing of threat of any suit for infringement of patent or trade mark, or of any other legal proceedings, not in good faith, which would tend to harass a competitor or 

intimidate his customer. 

5. The taking in trade or accepting in trade any secondhand or 

old equipment in part paym~nt for new, provided, howeYer, that 

this provision shall not be construed to prohibit in any way the 

return within six months of the date of shipment, to the V cndor 

and the allowance of any fair adjustment thereon by the Vendor 

of any product which shall not meet the purposes for which it was 

sold. Any employer may, however, assist in finding a bona fide 

buyer for said equipment, but shall in no case take any financi:11 

interest in it. 

6. So long as the maker of any product of this Subdivision bearing the maker's nnme or trade mark, which has required special 

designing, research or development expense ( or his successor in 

business) continues to make and supply such spare, repair and re~ 

placement parts therefor, supplying repair parts for such product 

of this Subdivision unless (a) the name of the maker of such copied 

non-genuine repair parts shall be plainly marked on each part ( or 

if this is impracticable on the paclrnge or tag) so that the ultimate 

user is clearly informed by marking on such parts, packages, tags 

and in catalogues, price lists, quoted prices, advertisements or n.dvcrtising literature of the manufactun'rs of such copied non-genuine 

parts that said parts were not made by the original maker of the 

products o:f the employer of this Subdivision. 

'7. The furnishing to any purchaser, and/or his agent, directly or 

indirectly of detailed shop drawings of the products of this Subdivision without filing a statement of such proposed transaction with 

the Code Authority which may approve or with the approval of the 

Administrator disapprove the transaction within ten (10) clays by 

written notice to the employer. 

8. Disseminating false or misleading information relative to competitor's products, selling prices, reputation, credit or financial standing, ability to perform work, or labor conditions. 
14 111 11 11111~1\11~1m1llll l\111\ll11II l\11\1i1i~1i111111111 1 

3 1262 08583 0494 

t. Indu ·ing a brea h or abantlonn1 nt of 

C' ntraet eoYcring 1lw 1rnrcha.· r . alc f th proclnct. of thi. i.. ublivi. ion; pro\'icl L h ow,, r that n thing in thi ► c ion hall b 

c n -trn tl t pr ,hi bit th a t mpt on th part of tl . w11 r f or 

Ii , n c m der any pat 'nt to in hice a pur ha er r futur 1 ur ha. r 

of an. pr ]uct whi h hall infrino- aid pa nt to a, id :uch 

pur ha. c. 

10. It ~hall b a 11 unfair trade pra ti ·e for any mployer to cn<rao 

in 1 ~tructi, price utting. 

AnTI 'LE X- ALF.: FOR ExP RT 

The J r ,·i ·ions of thi nr pl m ntal ode oncernin<T I ri ing and 

marketino· (Article VII 1 III and IX) hall not apply t lircct 

•xport al s of any product. imilar x mption ma be rrranted 

b the "ode Anthorit of thi ubclivi i n a t ale. f an product 

d tined ultimately for x1 ort. nl otherwise cl terminecl b the 

~od Authority the t rm "export' shall include all hipments to all 

pla e · without the everal tat of th nited tate and the D1 -

tri t of Columbia; proYided, h wever that no hipment to any t rritory or po , e . ion of the United States shall be con i lered an export 

when a_ny employer is engaged in the industry in such territory or 

possessrnn. 

ARTICLE XI-MODIFICATIONS 

(a) As provided by Section 10 (b) of the Act, the Pr ident may 

from time to time cancel or modify any order, approval, licen ·e, 

rule or regulation issued under Title I of-the Act. 

(b) Study of the trade pra'Ctjces of this Subdivi ion ill be continued by Code Authority, w·ith :the intention of ubmitting from 

time to time after it effective date, an~endments or addition to r 

revi ions of, or supplernent · to, thi Supplemental Code. 

Any such amendments, addition , revi ion or upplement propo, ·ed by Code Authority} and approved by a 75 % vote f the emplo3 er · hall be in full force and effect upon apprm 1 b th Pre id nt. The eligibilit requirements m thod, and effec of uch voting 

shall be th same a provided in Se tion ( e) of Article V. 

ARTICLE XII-MONOPOLIES -

The upplemental ode presented by Applicant is n t de ign d 

to prom te monopol and hall not b o con tru d or a1 plied a ~ to 

op1 r e r eliminate ·ma 11 enterpri O or discriminate again t them, 

and i de ·ign l to eff ctuate th policy of the Act: · · 

AnTI LE XIII-EFFECTIVE DATE 

Th1: npplemental ,ode . hall become effe tive ilil 1 binding on all 

per: n engag 1 in thi 11b liYi ion on the elev nth day after its 

upproval b} th () Pr0. icl ent. 

Ap[)l'OY cl 'c1(l 'o. 8-1 7- , 'uppl ·mC'nt . 16. 

R egistry 'o. 1312 3. 

0