Approved Code No. 257 Registry No. 599-18

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

PRINTING EQUIPMENT

INDUSTRY AND TRADE

AS APPROVED ON FEBRUARY 2, 1934

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

- Price 5 centFor sale by the Superintendent of Documents, Washington, D.C. - - - - - - - -
This publication is for sale by the Superintendent of Documents, Go

Printing Ofi e, WashingitWo, D).'., autl by dist rid tires of tlhe Bureau o

and Domestic ('oiinerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlania , (a. - 'ost liime Buildinig.

Birmin..ham, Ala.: 257 Federal Building.

Boston. Mass.: 1SO1 Customhouse.

Buffalo, N.Y.: Chanuber of Comnmerce Building.

Charleston, S.C.: Chamber of Commerce Building.

Chi-ago, Ill.: Suite 1706. 201 North Wells Street.

Cleveland. Ohio: Chamber of Commerce.

Dallas, Tex.: Chamber of Commerce Building.

Detroit, Mich. : (1 First Natlio nal Bank Building.

Houston. Tex.: Chamber of Commerce Building.

Indianapolis, Tnd.: Chamber of Commerce Building.

Jacksonville, Fla.: Chamber of Commerce Building.

Kansas Ctiy, Mo.: 1028 Baltimore Avenue.

Los Ang, -es, Calif.: 11G3 South Broadway.

Louisville, Ky.: 408 Federal Building.

Memphis, Tenn.: 229 Federal Building.

Minneapolis, Miuu.: 213 Federal Building.

New Orleans. La.: Room 22-A, ('u4tomhouse.

New York, N.Y.: 734 Customhouse.

Norfolk. Va.: 400 East Plume Street.

Philadelphia, Pa.: 422 Conmuercial 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, Wawh.: N09 Veileral Office Building.
Approved Code No. 257

CODE OF FAIR COMPETITION

FOR THE

PRINTING EQUIPMENT INDUSTRY AND T

As Approved on February 2, 1934

ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE PRINTING EQU

INDUSTRY AND TRADE

An application having been duly made pursuant to and in f

pliance with the provisions of Title I of the National In

Recovery Act, approved June 16, 1933, for approval of a C

Fair Competition for the Printing Equipment Industry and 

and hearings having been duly held thereon and the annexed 

on said Code, containing findings with respect thereto, havi

made and directed to the President:

NOW, THEREFORE, on behalf of the President of the 

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

pursuant to authority vested in me by Executive Orders of th

dent, including Executive Order No. 6543-A, dated Decem

1933, and otherwise; do hereby incorporate by reference said 

report and do find that said Code complies in all respects w

pertinent provisions and will promote the policy and purp

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

Competition be and it is hereby approved; provided, howev

the provisions of Article VII, Sections 2 (c), 4 (e) and 4 (f), 

as they prescribe a waiting period between the filing with th

Authority and the effective date of revised price lists or revise

and conditions of sale be and they are hereby stayed pend

further Order either within a period of sixty days from the e

date of this Code or after the completion of a study of ope

associations now being conducted by the National Recovery 

istration.

Ap WASHINGTON, proval 3767-313-185--34 W. A. Division February recommended HARRIMAN, D.C.,Administrator. 2, 1934: Adin (151)istrator for HUGH Industrial S. JOHNSONReco
REPORT TO THE PRESIDENT

The PRESIDENT,

The /hite Hovew.

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

Printing Equipment Industry and Trade, the hearing hav

held in Washiington on the 3d day of October, 1933, in ac

wit]) thie provisions of the National Industrial Recovery A

Privi,,is Aks To HOURS AND AVA4,S

Em ployneiit is limited to 8 hours per day and 40 hours p

-with the exception of those employees engaged in emergenc

tenanice, or repair work, and the exception that during a p

concentrated demand, a maximum of 8 weeks in any 6 co

months is permitted and the further exception that a tole

10% is permitted for employees engaged in care and mai

of plant and machinery and service men. Overtime on the

tions will be paid for at one and one half times the norm

Minimum wages of 40 cents per hour for males and 30 

hour for females are established. The Administrator wi

hearing not later than 4 months after the effective date of 

for the j -vp se of reconsideration of the minimum rate fir 

ECONOMIC EFFECT OF THE CODE

In June 1933, this Industry and Trade comprised appro

530 concerns and employed 6,337 pr s Since the adoptio

40-hour week, as provided in this code, employment has inc

7,142 persons in September 1933, or an increase of 13%.

The invested capital of the Industry and Trade is abo

000.000, and the average annual value of its products over f

was $61.000,000.

Schedule A of this code, for the disposition of used and 

printing machinery which has been obstructing the market 

modern machinery, is an attempt to solve a situation whi

depressing effect on all capital goods industry. Under this 

manufacturers may set up a clearing association which w

negotiable certificates of value for this machinery and 

market serviceable used miaehinery to prevent demloralizatio

market havingings The in Deputy this forund new matter: as Administrator inachinery. herein set forth FINDIN(fs in (152) his and final on the report basis to of me all on the s
153

I find that:

(a) Said Code is well designed to promote the policies a

poses of Title I of the National Industrial Recovery Act, in

removal of obstructions to the free flow of interstate and 

comimnerce which tend to diminish the amount thereof and w

vide for the general welfare by promoting the organization o

try for the purpose of cooperative action among the trade 

by inducing and maintaining united action of labor and mana

under adequate governmental sanctions and supervision, by e

ing unfair competitive practices, by promoting the fullest 

utilization of the present productive capacity of industries, b

ing undue restriction of production (except as may be tem

required), by increasing the consumption of industrial and 

tural products through increasing purchasing power, by r

and relieving unemployment, by improving standards of lab

by otherwise rehabilitating industry.

(b) Said Industry and Trade normally employs not mo

50,000 employees; and is not classified by me as a major in

(c) The Code as approved complies in all respects with th

nent provisions of said Title of said Act, including without 

tion Subsection (a) of Section 3, Subsection (a) of Section 

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

is an industrial and trade association truly representative 

aforesaid Industry and Trade; and that said association 

no inequitable restrictions on admission to membership ther

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

or monopolistic practices.

(e) The Code is not desig-ned to and will not eliminate or 

small enterprises and will not operate to discriminate again

(f) Those engaged in other types of the economic process h

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

(g) Due consideration has been given to all protests fi

revisions made to conform to all of those which were well f

For these reasons, this Code has been approved by me.

Respectfully,

Huo S. JOHNSON

Adminis

FEBRUARY 2, 1934.
CODE OF FAIR COMPETITION FOR THE PRIN

EQUIPMENT INDUSTRY AND TRADE

ARTICLE I-PPOSES

To effectuate the policy of Title I of the National Inidus

e.overy Act, the following provisions are established as a 

Fair Competition for the Printing Equipment Industry an

and shall be the standard of fair competition for this Indu

Trade. and slidl be finding upon every member thereof.

Arici~i, 11-DEFINITIONs

The terni Printing Equipment Induistry and Trade 

termi Indust ry and Trade ", as used herein, includes the 

manufacturing, repairing, selling, importing for sale, and 

tributing of machinery, equipment, and supplies (except 

below) used in the Graphic Arts Industry, and in carton 

or used in printing or lithographing on tin, aluminum, o

metals; and other related branches or subdivisions thereof. 

from time to time he inchided under the provisions of th

kit shall not iwclde any branch or subdivision thereof fo

a separate code of fair competition has been or may be a

by the President.

The term Graphic Arts Industry ", as used herein, is 

to iiean all business enterprises engaged wholly or in pa

art of preparing for representing and or representing 

through mechanical means by the processes of printing an

graphing on paper, cardboard, or similar materials and/or 

tioial pr oce*s. U ompletiig the printed or lithographed m

into finished Pr) iduets. The siiipplies iitendled to be exclu

paper and pa per products, ink, materials for electrotypers

eligraver. and sHinilar plateuiakinm supplies; and cloth. c rda

ald similar iidry1v sipples: :atnd printers' rollers.

The tern " Employee', as Used herein, includes any pe

gaged in any phase of the Industry and Trade, in any cap

the nature of eniployee, irresPective of the method of pay

his coIlmPei]nsa t ion.

The termii Eniplover , as used herein. includes anyone f

benefit The such an employee is so engaged. fined, Member assent includes The either toerm termii anyone of this "Mem as the " C(ode. Mvilibeir em eniiyagred plover a hilistry ber of of the orin the and Industry on the his Code (154 Trade Industry and own ", Trade behalf. as who ", used asnd shall used herein, Trade herein, expressly as inclu

a
155

The term "Person ", as used herein, shall include, but 

limitation, natural persons, partnerships, associations, trusts, 

in bankruptcy, receivers and corporations.

The term " Effective Date ", as used herein, means, and th

shall become effective on, the fifteenth (15) day after its a

by the President of the United States.

The term "Administration ", as used herein, means the N

Recovery Adniiiiistration.

The term "Administrator ", as used herein, means the A

trator for Industrial Recovery.

The term "Act ", as used herein, shall mean Title I of the N

Industrial Recovery Act.

The term "Association ", as used herein, means the N

Printinsg Eqiipuipment Association, Inc.

ARTICLE III-HouRs

1. (a) On and after the effective date of this Code, emplo

the Industry and Trade, except as hereinafter provided, shal

employed in excess of forty (40) hours per week; nor mo

six (6) days per week, nor more than eight (8) hours in any 

day, provided, however, that during any period in which a 

trated demand upon any division of any plant in the Indus

Trade shall place an unusual and temporary burden upon it

ties, employees of such division may be permitted to work n

than forty-eight (48) hours per week, provided further, h

that this exception shall not apply in more than eight (8

of any six (6) consecutive calendar months' period. There 

a tolerance of not to exceed ten (10) percent of the above lim

for employees engaged in the care and maintenance of pl

machinery, delivery service men, stock, order, reviewing and 

ing clerks and shipping crews, with payment of overtime at 

of time and one half for such tolerance, provided, howev

where in any case an employee works in excess of eight (8

per day, or more than forty (40) hours in any one (1) we

and one half shall be paid for the excess hours worked. T

imum hours fixed in this paragraph (a) shall not apply to 

ployee on emergency maintenance or emergency repair work 

ing breakdowns or protection of life or property, but in a

special case at least one and one half times his normal rate 

paid for hours worked in excess of the maximum hours 

provided.

(b) The limitations as to hours of labor shall not apply t

tives, factory, and office supervisory employees (not includin

ing foremen), and technical engineers, commercial outside s

lars employed of and 1.forty field-service per (a)week, (40) No more male cents andtian me who factory per watchmen, fifty-six hour ARTICLE employee receive and provided (56) IV-WAGES no more shall female hours than that be factory paid in thirty-five, watclunen any less employee on" tha ($35.1 shal() i 1 ih
156

paid less than at the rate of thirty (30) cents per hour, ex

follows:

(b) Wheneveri males and feniales perform substantially th

duties tinder substantially the same conditions, this Code shal

equal pay for equal work and equal opportunity for equal 

regardlesS of sex.

(c) No reduction shall le imade in the rates higher than th

mum rates provided for in the preceding paragrap~h (a) of 

1 of this Article, to compensate an employer for any rearrang

he may be required to iake to comply with the inininium r

the grlups specified in the preceding paragraph (a) of S

of this Article. To the extent practicable the differentials no

int' between un-killed, semiskilled. and skilled labor shall b

tained or safeiruarded, according to the conditions existing 

various locialities, wheri\ leiib)ers of the T dusty ad Tra

duct their business.

(d) No accounting2 oi- other eniplovee not covered by the pr

provisions of this Section 1 of this Article shall be paid less 

the rate of fifteen ($15.00) dollars per week, provided, howev

office girls, office bolys and messengers may be paid not le

eighty (80) percent of such uinimm un wages, provided that t

number of such employees shall not exceed in any calendar 

five (5) percent of the total number of all employees of s

ployer: provided, however, any employer employing forty (

ployees or less in his place of business or any employer em

no more than forty (40) employees in any branch office, sal

or warehouse may have two (2) such employees in each suc

of business, branch office, sales office, or warehouse.

(e) Nothing in this Article IV shall apply to, or affect 

ployee apprenticed to any employer by an indenture made 

suanee of the laws of any State of the United States, or by 

ten contract under any apprentice system established and ma

by any eniployer, but all existing and future apprentice c

shall be filed with the Code Authority. The term "appr

meals an employee, usually a minor, who agree to serve 

plover for a certain stated period of time at predetermined 

for the period in order to learn the trade.

(f) A hearing shall be called by the Administrator not la

four (4) months after the effective date for the purpose o

sideration of the minimum rates for females provided in 

1 (a) of this Article IV.

(2) This Article establishes a minimuni rate of pay whi

apply. irrespective of whether an employee is actually comp

on a time rate, piecework, or other basis.

(3) No employee shall be classified in one of the forego

mental ce)ted identical 16th, in of trator (4) No the age 1933. Industry before classes to at with health. personoperations those March (Aticles and under The prformed Trade, or 1, Code sixteen Ill occupations 1934, and nor Authority a by (16) anyone list IV) employees years hazardous "of unless shall such tinder eighteen of submit thus he age occupations. in performs shall classified nature to thbe (t8eAfo
157

State an employer shall be deemed to have complied with thi

vision if he shall have on file a certificate 01r permit duly issu

the Authority in such State empowered to issue employment 

certificates Or permits, showing that the employee is of the re

agre.

A1 RTICLE -CODE A DM IN IsTRAIILON

TO further effectuate the policies of the Act, a Code Autho

hereby set up to cooperate with the Administrator iii the ad

tration of this Code.

Organization and Constitution of Code Authoritv

1. The Code Authority shall consist of the Execut ive Con

of the Association (as that Comnittee is from time to tim

stituted, provided, however, that unless some other provisi

approved by the Administrator, the Executive. Conimittee 

Association shall be composed of not less than five (5) nor 

than seven () TOmemibers). To the Code A Ithority, as so coiistitiuted

and established, there may be added such additional l mem

members not to exceed two (2) as the Admiinistrator may 

time decide to be properly proportional (according to such 

mation as he may require nonmembers of the Association to fu

and to be selected by and to represent Members of the 1InduIst

Trade who are not members of the Association, which mem

members shall be selected by some fair and satisfactory met

be devised by the Code Authority and approved by the Ad

trator. The Administrator, in his discretion, may appoint 1o

than three (3) members, without vote, as his representativ

as representatives of such groups or interests as lie may s

2. All Members of the Industry and Trade participation 

sharing the benefits of the activities of the Code Auithorit v 

bear a proportionate share of the costs of any aimendnents 

Code and of the expenses of the administration of the Code, 

Proportion shall be based upon the number of employees o

Member of the Industry and Trade, or upon such other fa

equitable basis as the Code Authority may specify, subject to 

by the Administrator, and such funds shall b collected a

miinistered by and throyUhl the machinerv of the Association, 

aicenev of the Code Authority.

3. Each trade or industrial association O corpor-8ition dire

indirectly participating in the selection or activities of the 

Authority shall: (1) Impose no inequitable restrictions on m

ship, and (2) submit to the Administrator true copies of its 

of association, bylaws, re hulations, and any amendments when 

thereto, together with such other in formation as to memb

organ ization, and activities as the Administrator may deem ne

to effectuate representative ply such find in 4. other with thatIn 37671 hearings orderrespects comply the provisions --the Code 313-185-34-2 of that as purposes the he Authority the imay Industry Code of with of deem the the is Authority the and Act, Act. no proper; provisIoIs Trade tulythe Administrator and, shall represeiitative, and of thereafter, if in at the other all Act, times respectmay may or be dohp
158

an appropriate modifiit titi in the method of .-election o

Aut hority.

5. AtHIin Iflth istalor siall determine that am- 1atl

Code Authorit * Or tily J0vIcyx thereof is unfair Or nj list o

to the public initeest, tile Adhilltratur 111y require 

acti I he lulpt dedfor a period of n1ot to exceed thirty 

to aiyord an opportilllity for ilivestioatioli of the mneri

actiOn 111(1 further c(liin ideration by shell Code Anithority 

pending filial action which shall be tlkeni onlyv Uponl apptval 

Adnlillis1"trator.

ArrciLE I-)UTis ANI sowEns

'The (Code A1ithoritv shall have tile followilnl duties a

to tile extent perllitted by the Act.

1. It shall be vmipowered to Obtaiii from Membevrs () the 

an1d Trade and to subimiit to the Admiihinstrator such rep

spect to wages, lours of labor. imiber of eiployees, 

conditions of employmelit, 1i1nd il1 respeCt to production

price.s. cots and stocks, as tile Cod Authority Iay specify 

AdminiiArator 1ma , v require: md iII ad tition to the ii

thus required to be stbllitted t h e Code Alithoritv. ther

furni shed to governHita1 agen cies such statistical ilfor

the A~in11istrFttor m11a1y deem n iessarvy for. the purposes 

Sect ion 3 (a) of the Act.

All statistical data (Ir inforimlationl luIini shed b v anI v M

the Intdustrv anl Trade ill accorda nce with the forego

siGns shall be collected and kept in a confident ial a1ne

reports of the individual Members of the Industrvy mid 

Collected shall ot be divulged to amy other Meimber of the 

and TrIade or to anyone else not ciititled thereto, except 

such di closure may be necessary f r (ffective administra

eniforcemeit of the 'provisions of this Code.

2. It shall be empowered to itisilyre the execution of the 

of this Code anid provide. il cooperation with the Adih

for the compliance of the Members of the Indusitry and T

the provisions of the Code and of the Act.

3. To adopt bylaws and rules alit4 regulations for its 

in the adihinistrationl of this Code, and to use such trad

tions antd other agencies, and to delegate to them slich of 

and duties hereuider, as it maN deell liecessar1w for the effectiVe

accomplish ment of its activities provided for hIreill, prov

nothing herein shall relieve tie (,.ode Authority of its 

responsibilities (and that such trade associations and agen

at all times be subject to and comply with the provisions 

Members (qlate and them iimitationi that 4.5. furn are All llpursualt le( accountinig demoralizing Members ish Code of ol the allte to Authority Industr data ant foregoin(r, the of the foregoing otherr and y destructive Indtistry shall ani information records that Trade have provisions. of and as to tile investigating among respecting will Trade which Industry enable its shall myduties, pricescoiplaithem keep b andbuor ret
159

that tend to create a monopoly; and if such prices or practi

found to exist, the Code Authority shall report the facts 

proper authority.

ARTICLE V 11I-l'.NFAIR COMPETITIVE PlRACTICES

Unfair competition of any MemIiliber of the Industry and 

shall be deemed to comprise any of the following acts or pract

1. Any and all noncompliance with this Code.

2. Wilfully selling or offering to sell any nachiiery 

equipment and/or supplies at a price oi upon terms or con

that will result in the customer paving to the seller for the 

received, less than their ascertainable cost. to be determined 

ing to sound principles (a guide to which appears in Exh

attached hereto) except that a Member of the Industry and 

may sell below his own cost to meet the price of a lower-cos

petitor. Any changes, hereafter made, in Exhibit 13 shall be 

to the approval of the Administrator. This clause shall not 

to bona fide discontinued lines.

(a) Every manufacturer, dealer and importer shall establ

own list prices for his machinery and equipment and the list 

or regularly listed machinery and equipment shall be filed w

Association as the agencv for the Code Authority not late

fifteen (15) days after the effective date of this Code and the

become effective on the date filed. The list prices so filed 

remain in effect and no deviation may be imade from them

changes are made as provided in Section( following. It s

considered an unfair trade practice for any i\ember of the Iti

and T rade to sell any such machinery anl(]/1,or01 equiplnenlt at 

below those filed by him with the Association, and then in effe

(b) The Association may furnish a copy of any price list 

with it to any manufacturer, dealer, or importer within the In

and Trade who makes written application therefor and who 

factures or deals in machinery and/or equipment similar t

covered by the price list applied for, and the Association sha

all such price lists so filed with it available at all times for ins

by any Member of the Industry and Trade anl by any purch

prospective purchaser.

(c) In order to effect changes in the prices filed as provi

(a) above, the manufacturer, dealer and importer shall file no

change, including a schedule of new prices, with the Associa

its head office, and the new price shall become effective five (5

after filing.'

3. (a) Making any trade-in allowance for used or secon

machinery or equipment accepted in trade as part paymiet f

machinery second-hand pursuant therefor, determines, istrator; agency i See paragraph of the provided to to or methods of by machinery be 2 Code equipment the of formulated Order that, Executive Authority, approving value-determination pending or in equipment, by excess Committee this and such theCode. to of approval Code such be the of approved or Authority. value the by rules Association the toof and by be Adnini such or the dterregiiif uA
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(d) To avoid misatis factor v andfl u1lSt d practices, 

where credit is exteiided for supplies of a con Ism ilal n'ii atuiire

parts, and service for machinery and equipintt, >'tttl em

be due not later than the fiftecnth (15th) day of the m1ontlih 

shipIeIt. Such accounts not paid within sixt ) days 

date of shipm)Heilt sh ould be subjected to an interest charge 

of at least six (6) percent per ann1u1tim when permitted by 

when not, at the legal rate of interest, and said interest 

computed on each account from the time the account bec

due; if not paid within ninety (90) days from date of 

further extension of credit to such deliji ient shall be 

within the dOiscret oll of the manui fact Hrer', dealers, and im

(e) Rate aind terms of disconlits for prompt paym(l1

establiihed bey any manufacturer, dealer, or importer

presently etablishetId. schedules thereof, shall be filed not 

fifteen (15) davs after the effective date of this Code, anid 

becoeii effective oii the date filed with the Association as 

for the Code Authority. Any such rates and terms 

established by aniy manufacturer, dealer or importer shall 

like m an ner with tie As siciation and shall become effectiv

than five (5) days after such fii ng. Such rates and ter

counts 5h all not be exceeded bv the Member of the Ind

Trade who files them prior to the filling. by him of revised 

with the head office of the Ass nociation as provided in 

(f) of this article. Uponi writteni application by any man

dealer, or importer, within the Industry ant Tride the A

may furnish to such applicants a copy of such discount 

and the AssociatiiO shall hold all such discount schedul

with it available at all times for inspection by any Mem

Industry and Tradle and by any purchaser or prospective p

(f) In Order to affect changes in the rates and terms of 

filed as provided in (e) above, the manufacturers, dealer, o

shall file notice of change, including a schedule of new disc

with the Association, at its ]lead office, and the new rates sh

effective five (5) days after filing.i

5. Any false or milsleadiMng, advertising, guaran)tee, or 

cermnming a pro(Iu('t.

6. Any malicious stateieits iin defamation of a competi

uct, personnel, credit, or financial responsibility.

i. compellingg,' the purchase of a group of products as a 

tion of purchase of one or more products.

8. Selling rebuilt, reconiditioined, overhauled, or used p

an( for, new.

9. Fictitious bidding for the purpose of deceiving com

purchasers, or aly attempt-througrh connivaince-to hav

rejected or dustry ii 1Sfe 10. parts 1eAw pmragiraph No bidding(. and to therefor. Memberthe Trade 2 endof Ordtr copied that of from the aa p proving more a or Industry machine duplicated advantageous this Code. and or parts by Trade such Member position therefore, shall sell iay m
162

(st4ahbished manifarturer of pintig machinery, at a selling 

uider the seller's a!-certaiiiable cost.

11. GUinio coniceled Subsidiaries 01r agents, ostensibly indepen

to secure competitive advtanitage.

12. Lavish entertalimieit of customers or prospeCtive cust

tleir (mpoy(,S. ( IOthr a:-ti ng for tlemli.

13. Eniticilig aa y\v emipl' yves of competitors with a view of 

peri1g or vmbarrassling competitors in the conduct of their bus

Nothing in this paragrapi \Ni1 prevent aliv employee from of

his servie-Z to a competitor or prevent :ny employer from empl

all emhpl yeC of another Memliber of the Industry and Trade 

the initiative of such change of employment is taken by the emp

14. Procuring the buinwss or trade secrets of competitors 

pioage or by bribing their employees or others, or by similar m

E-). Threats to the trade and others of suits for patent infr

meitt ari.iii ! from the sale of alleged in fringing products of 

petitors, .smh thjrbats not eintr made in (rood faith hut fo

purpose of iltiiiidatinig the trade aiid hampering coipetitioil.

16. Obliteration, remiiovini1. damaging, or deStroyin, or alt

or tamperiting in any mannmer with trade names or trade mark

serial ni ibis of protlucts with the intent of destroying the id

of origin of maniilacture and lmisrepresentino such products: 

imitation of trade marks, trade ames. slogans, or other mar

ideitification of competitors.

17. False claims by a dealer in domestic products of being a

porter. i by a dealer of being a manufacturer. or by a maiufac

of Some product of being also the producer of the raw materi

ternI inito the manufacture of said product.

1 . 'Securin. ill any- ufair manner customer's or prospective 

toliel's signhiaturie to a contract throiuhll repre entation that 

mer'ely an ordir on approval or otherwise.

1I. Maliciolisliy inducing or attemptiiir to induce the breach 

existI )! cml tract lIetween c1ilpetitors alld their customers, or 

fering with (r oIbstructing the performance of any Such contra

c(nI tractual duties or service, with the plIrpcoSe and effect of ha

I, 1jurinig. or embarrassing Colpetitors in their bushiess.

. Directilv or indirectlv tampering with or ilisadjusting a 

petlitor's products ill order to discredit them with a customer.

21. For the purpose of hampering or eliminating competitiO1

(a ) The rantiig if. or agreement to grailt, any secret or une

allowa 1nce. rebate. refurn. commission, or discount, whether i

form of ii im(Ney. (y ca nellation of n(ots or accounts without pay

or otherwji SQ. or extendiig to cerstaill pirchasers special ser

pr vi leres, ( con Ssiois not extemled to all purchasers of same 

(b) PermiIittinir purchasers to reta in without Charge mac

beeri chia and1' without or furilishinig (d (c) (ther rg'e. ) made. Furniishiiiig F'rinishing. Or adequate service I qijp Such t OrI for sery amd of an without w ices, part material proper which thereoftc., a charge, charge. charge for at or which less labor inspection. an should allowance than or an ilcurrinig has ordinarily adequate and erectioll, other be adjustmadexp
160

(e) Allowingr preferenitial discounlt-. O allmVit (1 d1>t( o)un

of the discount period.

(f) Aburbini freight Or other trnllspolt'lli loll or othe

) roper Nly payable by the pllrchaSer.

(g) AgYreeing to give or givi g to a iiew buyer the b('nef

ments made or other credits establislied by the ori ial 

products not yet delivered.

() Giving ciedits thro Iughi allowace- fPr !dverisilg 

vert>ining of value justifying the allowance is nlot received.

(i) Selling machines or equipment or any part thereo

tomler's account and then accepting Lb asby i alN ue)t w

course, the deferred pa rt of the sahZ price a a C(d it ) allother

transaction.

(j) Sellingo nIew pro I ucts as demintration. exihition

reconditioned, ovorhauiled, o1 ised Imachlinery and or equ

ess than the (i'rellt rul list price of iew product-s of 

fications and quality.

(1k ) Making allowaiices for used nmachiIIery or eju ijpe)

when acqiired by the customer or prosperti1ve cuii'toe r, wa

and which has been in his possession for less than six (6

or furnishing a cUstoIeir or perspective customer with old 

and equipment or assisltifng a customers Or 1prospective cu

obtain such machines or equlipilent, for trading purposes.

(1) iNo Member of the Industry and Trade shall give. 

be given, or directly offer to give. anything of value for th

of influiencing or rewarding the action of any emlplovee, 

representative of another in relation to the business of the 

of such employee, the principal of such agent or the re

party, without the knowledge of such emplover. principal 

Conmnercial bribery provisions shall not be coiistrued to j

free and general distribution of articles comnionly used 

tising except so far as such articles are actually used for c

bribery as hereinabove defined.

(in) Subsidizing public officials, or employees, or custo

ployees or prospective customer's employees or their 

through employing or offering to employ them, or in 

manner.

(n) Using any method whatsoever to create the false i

in the minds of customers or prospective customers or oth

senting or acting for them. that they are being offered op

to purchase nider unusually favorable conditions, in a m

_-Mper or eliminate compeitionI.

22. Placing in a customer's or prospective customer's 

machine or attachment on trial or under conditions tanta

trial, except that in the case of any customer or prospe

tomer attachment the attachment, the and/'or ninety that seller customer it who sall (90) produce to has of the days not enter if the not terms be according the from sae into construed previously machine of the a make which contract date to wifair and or thepurchased contract of attachment type, of guarantee installation; trade salmay it orpractice for shall tried permit shall of a provided. be single the any to permifail itssellinsmrt
164

develoJ ed mw !d el> of m1ahin!ies or atta(linents in a custome

prosp tivc custo:yer' phmiit for the purpose of testing their o

tioni mricr practical wvorking conditions.

23. TheA islirpingr of amy designi (or dr-awing of a design

prinlting(1 type faces or orliaments, origiiiated by a competitor, 

by the copvig of such design ill its origiinal form or after 

been]] convert 1ted into a matrix or other means of reproduction

vided that this sections shall nt, become effective until standard-s 

been e.t U 11b4lhed by tle Members of the Industry and Trade 

cerned an(d approved by the Administrator for the determin

of violations of the stan idards. Such standards to be effective 

be filed with the Code Authority not later than ninety (90) 

Pfter the eflective date.

The application of this Section 23 sliall be limited to the 

facturers of foundry-cast type and of type-casting and type-s

iachineiry aid/or matrices therefore.

AwrICLE \ II I-S URPLUS MACHINES

The Association maxy organize and incorporate a clearing a

ation to cope with the problem of used surplus machines and 

ment in accordance with a plan outlined in Exhibit A hereof. 

such corporation is organized, it shall be under the administrati

the AssociatiOi as the agency of the Code Authority. and its me

ship shall be open to all who are subject to this Code. Within 

State this Code shall not supersede any laws of such State 

reference to the provisions of this Article VIII, including. 

any provis4ioiis of or procedure under the voluntary outlined 

described in Elxhibit A.

AwrcLE IX--GENERAL

1. Employees shall have the right to organize and barga in 

tively through representatives of their own choosing, and sh

free froi the interference, restraint, or coercion of emiplov

labor. or tieir parents, in the desigynation of such representat i

in self-organization or in other concerted activities for the pu

of collective bargaining or other mutual aid or protection.

2. No emiq plovee and no one seeking employment shall be req

tis a condition of employment to join any company union 

refrain oin I IinI. organizing, or assisting a labor organization

of Iiis own ciloosin".

3. Employers shall comply with the maxinun hours of 

min iunmil1 rates of p)y, and other conditions of employment app

011 (( health dustry tration, Trade mients, atmply 4. 0. prewcrihed Within Any by and regihl wit fire be whom wholly considered Trade or a any each tin by v gYenleral it laws the olviwned shall. State. is the so Presidenit. of asage owned for working] or Members such a ofpart the controlled State eliployees, or controlled. g purpose of conditions, of the the impll enterprise Mlember of osiln Indwstry wa.es, this than mIlore Codef engaged hours st-rintrent untider the and and Industr

of Trade its this in woadmreth
165

6. The provisions of this Code concerning sales, trading 

ances and sales terms, shall not apply to direct export sales o

ments of any. product. or to ,ales or sillhpients f any 

destined ultimately for export, or to sales or h ipments o

Used in the maniufacthre of pro(d Bcts for export.

7. Each employer shall p (Tht in co picitotis places the fu

a 1d1 wage provisions ()I' this Code.

ARTICLE X-ANCEL1TIN AND AMENDMENT

This ('ode and all the provisions thereof are expressly made 

to the right of the President, in accordance with the provis

Section 10 (b) of the National Industrial Recovery Act, fro

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

regulation, issued under Title I of said Act, and specifically 

right of the President to cancel or modify his approval of th

or any conditions imposed by him upon his approval hereof.

Such of the provisions of this Code as are not required to 

cluded therein by the Act, may be modified or eliminated as 

in circumstances or experience may indicate. It is contem

that from time to time supplementary provisions to this C

additional Codes will be submitted for the approval of the A

trator to prevent unfair competition in price and other unf

destructive competitive practices and to effectuate the other p

and policies of Title I of the Act consistent with the pr

hereof.

Upon approval of any such modifications, supplementar

visions, or additional codes by the Administrator, after such 

and hearing as he may prescribe, the same shall become effe

and with the effect of provisions hereof. Any such modifi

supplementary provisions. or additional codes may be su

by the Code Authority.

Approved Code No. 257.

Registry No. 599-18.
EXHIBITS

EXHIBIT A oF ARTIOL VIII

OUTLINE OF A PLAN SUBMITTED BY THE INDUSTRY AND 

TO DEAL WITH THE SURPLUS USED PRINTING EQUIPMENT PR

INTRODUCTION

The major portion of the available surplus used printing machin

equipment rests in the hands of printers and publishers and other p

engaged in the Graphic Arts Industry. In most cases, they are the 

owners of it. For the most part, such used machinery is offered for 

through dealers but through other and various unorganized mediums. 

of a central organized outlet for such used machinery unfavorably af

entire Industry and Trade in many ways.

OBJECT AND INTENT

As an aid to the Graphic Arts Industry to provide through an authe

source for the disposition of all kinds of used machinery at fair and ju

valuations, by acting as a negotiator between owners of such used m

and prospective purchasers through authorized dealers and otherwi

proposed that there shall be organized a clearing corporation to effect 

satisfactory situation in the common interest.

It is not the intent of this plan to interfere with the right of o

sell or deal with used surplus machinery with whomsoever they may 

nor is it the intent to prevent dealers in used machinery from pu

surplus used machinery in any manner they may see fit, and trade in 

require any manufacturer, dealer, or importer to participate in or be 

to this plan except by his voluntary action or assent. The success of 

depends upon voluntary cooperative action on the part of the owners 

used surplUs equipment. If it achieves the desired results it will 

entire Industry id Trade-consuiner and producer-to stabilize emp

increase wages, and enlarge purchasing power.

DEFINITIONS

" Corpiora ti in."'-Na tional Printing Equipment Clearing Association.

" Indust ry."-Graplhic Arts Industry.

" Usel Machinery"-Surplus used printing machinery and equipme

capital asset nature.

" New Machincry."-New print n.g equipment and machinery of a capi

nature.

SUG(;ESTfiD PLAN AND FUNCTIONS

Name of )rganizatioi-National Printing Equipment Clearing Ass

Capitalization.- -iased on cash assets. Ch.trter under New York 

State Laws. voluntarily fled sol( holers, stock may Pr( organization. Riegist Alan:l"'eiuvnt Sto-kc sideint, trUst by 'tra and if Snhscription.-To Negotiabiliy c neiilr r Secretary, !anipany he participate of offered Stock.-All a1d purchase shall to SIa to .-be ind in Stock be ff.-liirectors, the selected Treasurer. the fails stock be offered public. plan. open shall by issUeld as first either to Registrar. (lt;C) Stock have ThallExecutive shall to of the corporation, Iuard who shall limited these be are countersigned be shall ('omm two negotiability. nonassessable.. tinder set (2) ittee, up second this offerings, a by Presiden

proper Cde a to Stocdulthat
167

Headquarters.--Maintained at satisfactory location separate from th

shareholder.

Selling Organization.-Sales of used machinery listed with the co

and capable of satisfactory economical use in production shall be ef

it only through authorized dealers who are members of the National 

Equipment Association, Inc.

Advertising(.-Cost of printed matter and advertising shall be born

corporation unless otherwise arranged.

Condition.-Condition and completeness of used machinery shall 

fied by owners on appropriate forms.

Appraisal.-On request and at the expense of the owner or purc

agreed, corporation will arrange for appraisal of used machinery, 

regard to the corporation's valuations, as provided for herein, an

operative condition, age, and modernism of design.

Storage.-Used machinery capable of resale. Pending sale and/

disposition and in the interest of economy, owners should retain c

equipment, and in operative condition if possible.

Inspection.-Shall be at the expense of owner or purchaser, as agre

chaser should inspect used machinery, capable of resale, at the time 

and if found acceptable, so acknowledge, in writing.

Repairs and New Parts-Expense of any such to be borne by 

purchaser, as agreed.

Delivery-All expense of whatever character incurred in the pr

for shipment and all shipping and delivery charges shall be borne 

or purchaser, as agreed.

Erection-Cost shall be borne by owner or purchaser, as agreed.

Title-Owner shall give Bill of Sale to purchaser with guarant

clearness of title or as to lien or encumbrance of any nature whatso

Sales Price-May be fixed by owners of used machinery capable 

Terms-All cash, is possible.

Cash Discount-Rate shall be fixed by owners.

Deferred Payments-Owners may fix the " Terms Price " and 

credit extension where sales are effected on time-payment plan ; co

to advise as to any legal limitations.

Contract and Notes-Corporation will have prepared for account 

on request, at his expense, which will be nominal. Advisable for co

to so act, considering varying legal requirements of different states

Interest Rate-Six (6) percent per annum, subject to conditions of s

Landlord's Lien-Where state statutes give prior lien to landlords of 

for unpaid rental, corporation will endeavor to obtain for owner c

waivers of such lien.

Insurance-Maintained at expense of purchaser pending completio

ments. Corporation shall furnish list of acceptable companies, an

existent, its interest to be noted, and corporation to follow up secu

mium receipts, renewal policies, and direct adjustment of any losses

Preservation of Lien-Where state statutes require recording of filin

tracts or mortgages taken back to secure deferred payments and 

thereof, corporation will on request arrange for compliance with 

requirements for owner, at his expense, which is nominal.

Collections-Unless otherwise arranged, will be made by corpo

proper assignment of notes and contract; all expenses (which are 

in connection with assignment and collections to be borne by o

owner is in need of csh, corporation may, on request, endeavor to 

for the discounting of the notes at best obtainable rates.

Remittances-Remittances to owner, as and when received from p

and in same kinds of money in which payment is made. order corporation convey avoiding owner Listings-Shall Priority Options-Used Interim of toull listing misunderstanding effect Sales-If of particulars for Sales-Identical so sixale machinery be far (6) during through promptly as to months' it corporation as may this capable to referred source used six prove period. expense (6) of prior machinery to other to resale shall months' be incurred authorized to possible. than making period, shall the or be dealers. otherwise. any commitment

corporation, be exclusively opportunity offered foowliis
168

Owner-Identity shall remain undisclosed pending receipt of an 

Listing shall be identified by corporation's record number.

Compensation-For the purpose of providing for administrative, 

advertising, and routine expense and, in the absence of or in addit

fixed conmmissln selling charge or percentage, corporation shall be 

add to the sale price fixed by owner, a reasonable charge to co

expenses. Corporation's fee and charges shall come, if possible, out 

payment or, if latter not sufficient to cover, out of cash payment 

notes paid. For satisfactory services rendered, dealers will recei

compensation out of equitable charges made by the corporation for 

rendered.

Reservations-Pending completion of payments on used machine

the right shall be reserved to owners to withdraw from the corpora

contract and notes, etc., lodged with it, simultaneously accounting to 

tion for its interest, and expenses, if any.

Manufacturers-Shall furnish, on request, to corporation any miss

available, or history of used machinery listed with corporation for 

other disposition.

Straitened Circumstances-Every effort shall be made to obtain 

and/or other control of used machinery coming upon the market as t

of defunct or bankrupt concerns or consolidations of plants.

Broad Basis of Valuation-Practically all new machinery is equipp

certain perishable equipment which, in its first use, becomes imm

second-hand and of no market value to manufacturers. To meet th

tion and to establish a fair value for surplus used machinery, the 

Directors of the National Printing Equipment Association, Inc., 

authorized to establish rates of valuation therefor. This Board m

cognizance of any method or rules and regulations for determining 

allowances provided for in Article VII, Section 3, of the Code for the 

Equipment Industry and Trade.

Certificates of Value-Where an owner desires to arrange for the im

disposition of his surplus used machinery, corporation may issue, at the 

request and subject to inspection as hereinbefore provided, a Certi

Value based on the valuations provided for herein, in full settlement 

surplus used machinery, the disposition of which will then rest with 

poration. No such certificates, however, shall be issued for used sp

pose machinery, hereby defined to be machinery built to order from 

prepared drawings and manufactured from specially built jigs, fixtur

and other specially designed manufacturing equipment necessary in th

facture of such machinery, unless through a dealer the corporation has 

In advance a bona fide order on a cash basis for such machinery at 

factory price ; provided, however, that in such event Certificate of Va

not be issued for an amount in excess of its value based on the v

provided for herein. Where a dealer in used machinery desires to 

machinery to the corporation, the corporation may issue therefor, 

dealer's request and subject to inspection as hereinbefore provided, Ce

of Value based on the valuations provided for herein in full settlem

such machinery, the disposition of which will then rest with the cor

The corporation shall accept Certifientes of Value from dealers in co

with its sale to dealers of used machinery coning into its absolute po

but not in excess of ten percent (10%) of the price at which such mac

sold to dealers by the corporation.

Liquidation of Certificates of Value-Certificates of Value shall be 

by all inanufacturers, dealers and/or importers of machinery volunta

ticip):ting in this phan, but only in connection with the purchase of 

chinery in transactions where there are no trade-ins and then in an am

upon the ina equipment, burse Certificates ofr into Certificate excess thimt importers dealer holders prior which the inanufacturer's iake; of to dealer or theaken of tenhe under the of importer, the manufacturer percent dealer effe,-tive Value or in terms Certifica trade importer or inwho (110%) of date importer connection on te. contracts sells the of oexcept who of Where such this sale his thehall represents Code, goods, that bet with the list price machinery o an ween new b a inIhe foresaid reimbursed. for tle machinery then mmainfacturer him, of sale equitable and/or case new and of dealer for of machinery new manufacturersand/or equipment the sales terms or machinery sha.ll ful made importeequipmand purcvaluarrashbc
169

Certificates Unacceptable Except for Machinery-No Certiticale of V

be areepted in payment for sale of supplies or equipment of a co

nature ; nor shall such Certificates be accepted in settlement of ac

notes receivable or other indebtedness; nor shall Certificates of 

accepted as part of a cash payment in deferred payment transactions

Negotiability and Disposition of Certificates of Value-Except manu

including their representatives an their (direct dealers, and impor

holders of certificates will he at liberty to sell them to others who m

tile market tiherefor. Field representatives (if manufacturers, dea

importers, knowing who is in the market for new machinery, wil

position to assist these holders to find an outlet for their certlieates 

such printers or publishers as may be contemplating the purchas

machinery. The corporation will from tine to time advise tiw trtl

certificates reported to it as available for resale, also, tile i 

will receive notices at least weekly flrmoi the co O ra I ion of certilica t

In turn. they will keep their field representatives informed. libide

tificates will undoubtedly experience but little difficulty in finding 

market for them.

Maturity of Certificates of Value--Certificates of Value shall ceas

any value afher a period of live years from the original date of i-sue 

after said date of expiration be sirrendered to the corporation for cn

Registration of Certificates of Value-Certificates of Value shal

less signed by two separate officers of the corporation and coun

by a responsible trust company to be selected as Registrar.

Surrender or Reduction of Certificates of Value by Manufacturer

facturers and their dealerss and/or importers direct or throu.gi t

factuers honoring the Certificates of Value shall immediately followin

of settlement for said new machinery, forward the Certificates of 

he corporation for cancellation wit I a complete statement of the tra n

connection with wlich the certificates were taken. if an amount eq

percent (10%) of the list price of new machinery will not entirely 

a certificate the purchaser will turn the certificate over to the man

dealer, or importer who will send it to the corporation to have the 

amount endorsed as a debit thereon, following which the verlificat

returned to the purchaser to be held for future use.

Outstanding Certificates of Value-At least weekly the corporat

send to Members of the Industry and Trade participating in this pa

of the issuance of certificates and shall at monthly intervals furnish 

parties a complete list of outstinding certificates showing their curr

Disposition of Products-Immediately upon the surren(ler of used m

to the corporation under the proposed certificate plan, the corpora

arrange for the resale of used machinery capable of satisfactory e

use in production through authorized dealers and will thoroughly 

all used machinery coming under its control which in its judgmnit h

to be an economical factor in production.

Notice to Manufaturers-Manufacturers shall be duly noiitied o

position of all used machinery coming under control of the CO rp'rati

Manufacturers' Record of Equipment-Each manufacturer shall f

the corporation, on forms to be prepared and readily adaptable to 

ness, a record of all printing mnachinery manutacturedi since the 

showing the fiscal or calendar year in which such machinery was 

tured, model, price, style, serial number, and Oher descriptive in

identifying the age of such machinery ; and shall, thereafter, continu

nish such information at yearly intervals. Such information will s

guide to the corporation in determining the amount of Certificates of 

he outstanding at any one time. It will also assist in the fixing of 

able valuation it machinery tion-The information source all may Purchasers will cases, assistance have before further other to of corporation as regarding indicate used than becomes of enable in Used thm aiding machinery the their the will anythe Machinery corporation. a then complete corporation sole intntion used cooperate aceordiig to property machinery reach Tbhrough history of Prospective with to purchasing a of to determine satisfactory thereof. This the offered age a Source industry corpora and purchasers such to the modernism the decision. Other tion. disposition in machinery should indstry supplying than would of prove the of thrso dedo t
170

Dealers' Direct Sales and Purchases-Dealers should report to the 

tion, on appropriate forms, all used machinery purchased by them o

with them for sale, and the disposition of such machinery. The objec

is merely to keep the corporation informed as to the state of the used m

market and its location. It will also aid the corporation in referring 

to dealers, and, in addition, enable the corporation to advise with deal

inquiries received by it from time to time from prospective purchasers 

machinery.
ExHIBIT B OF SECTION 2, ARTICLE VII

PRINCIPLES FOR DETERMINING COSTS

It is not the intention to develop or even to suggest a uniform sy

cost accounting for the industry as a whole. There is too much variet

character of the several businesses involved to make such a uniform 

practicable. It is rather the aim to make clear what the elements of 

and to outline the general principles upon which they should be as

into unit costs, leaving it to each individual member of the industry to 

late his own accounting system in such form as is most suitable and co

for the needs of his business, the only stipulation being that the syst

be so framed as to bring out the data necessary to comply with the p

here laid down.

There are several kinds of goods for which costs will need to be asce

(a) Standard or universal purpose machinery and equipment, w

manufactured on a repetitive basis and may be built for stock.

(b) Special purpose machinery and equipment built to ordor, from 

prepared drawings and manufactured from specially built jigs, tools,. a

specially designed manufacturing equipment necessary for the produ

such machines.

(c) Machinery and equipment dealt in but not manufactured hy 

cern handling it.

(d) Supplies as distinct from iachiniry and equipment.

The elements entering into costs divide roughly into two groups, viz

and Indirect, the former being items which can be identified as applica

specific unit of goods or product and the latter, those which canno

identified.

In building up unit costs the differentiation between direct costs anil 

costs will vary somewhat as betwo-n the four types of goods enumerate

but, there need be and should be no variation in the principles ilivoive(

are, that each type should carry every element of direct costs aopli

it and also a fair proportion of the indirect (or general) costs which c

identified against a specific unit of goods or product, such as indirec

facturing costs; amortization of expense of research and developing 

tecting products; costs of delivery, installation and service (where 

in the term of sale and price quoted) administrative ai11 general e

selling expenses; taxes, etc.

In the allocation of indirect costs to unit costs there are various 

which may be used any of which might be suitable for a particular ca

not intended here to stipulate the use of any particular me hod hut 

stipulate that whatever method of allocation is used must be an e

method and in accordance withi recogn ized ouiid cost-accountinl' pra

As a general principle, it is recognized that the fair allocation of 

costs to unit costs necessitates the selection as a base, of a period of 

length ko be representative and during which volume has been norma

wise misleading cost figures will be produced which might result in the 

tation of a selling price that would render the marketing of tH

impossible.

costs of the amount standard of reason It, Further, Similarly, machines the having shall buyer. is or usedegard be in universal for might easily in itspread. determining in must placing which to: determining be purpose (1) the on considered be The the article the show) type, cost cost market a was fair of to permissible the of a (171) machinery, be rpo number all-inclusive new new higher models :ssessed. article to of than repossessed write units to cost of of oa a fair machinery. similar down, fair over which the slling inventory because wherfirst model priceven few thofn
UNIVERSITY OF FLORIDA

172 3 1262 08856 0353

(2) The costs of reconditioning and rehandling, (3) The then current selling

price of the repossessed article, and (4) Any special condition surrounding the transaction.

Below is given a sumnniary of the elements usually entering into cost.

Naturally it is to be understood that if in any particular business or as to any

particular unit of goods, some one or more of the elements named are not

present, such clement or elements should be disregarded. (1) Costs of Manufacture or of Repairing or Reconditioning-Direct costs

comprise all expenditures for materials, labor, and other items which can be

identitled as applicable to a specific unit of product.

Indirect costs of manufacture sometimess called factory burden or factory

overhead) comprise all expenditures in connection with production which

cannot be identified as applicable to any specific unit of product ; such as supervision ; elevator service; janitor service; and other general labor; stock keeping. time keeping and planning and routing work; engineering; packing and

shipping; perishable tools and other general factory supplies; inspection, pattern expense ; power, light, and heat ; factory communication ; repairs, maintenance, and protection of factory properties and equipment; rent and/or depreciation at adequate rates of factory properties including machinery and

equipment, and taxes and insurance on such factory properties and on inventories; workmen's compensation and group insurance; costs of welfare and

safety services. etc.

(2) Expense of Research and Developing and Protecting Products-These

comprise the cost of professional and all other work and expense involved in

(a) improving present products, (b) developing new products, and (c) protecting products by patents, trade marks, or otherwise. These should be amortized

over a fair period.

(3) Costs of Delivery, Installation, and Service-Some of these will only

arise in cases where goods are sold " delivered " or "delivered and installed"

at or in customer's plant. They may include freight on goods shipped; cartage

and other delivery costs at destination; wages and expenses of service men

engaged on installation and demonstration of machinery or equipment; the

cost of rough labor engage(l locally to assist said service men; etc.

(4) Administrative and General Expense-This classification includes salaries

and/or other compensation of officers and clerical staffs except those engaged in the manufacturing, installation, and selling departments; legal expenses;

losses on repossessions and bad debts; and other expenses applicable to the

business as a whole rather than to any particular department or classification.

(5) Selling Expense-This includes all salaries, commissions, and other compensation of salesmen or selling agents and their traveling expenses; salaries

of general employees at branch sales offices and all rentals, taxes, and expenses

applicable to such branch offices; salaries and wages of employees engaged at

head office in selling work and all expenses incurred at head office applicable

to sales, advertising, and publicity, etc. Selling expenses do not include

salaries of installation and service men, as these fall within group 2.

(6) Taxes-These include Federal and State franchise, capital stock, and

corporation taxes; and all other taxes except those applicable to factory

properties and inventories and sales offices.

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