Approved Code No. 347- Supplement No. 40 Registry No. 1312-01 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

DIESEL ENGINE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON AUGUST 1, 1934 

WE DO OUR PART 

. .... - . - A , I • O= --• __ ;,_ 

U.8. DEPOStTotW 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superin tendent of Documents, ,vashington, D.C. - - • • • • Price 5 cents 
This publication is for sale by the Superintenaent of Documents, Government 

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Approved Code No. 347-Supplement No. 40 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

DIESEL ENGINE MANUFACTURING INDUSTRY 

As Approved on August 1, 1934 

ORDER 

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE 

DIESEL ENGINE MANUFACTURING 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 Diesel Engine Manufacturing Subdivision of l.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: 

NOW 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 Decern.ber 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) insofar as 

they prescribe a waiting period between the filing with the Code 

Authority and the effective elate of revised price lists and/or dis- · count sheets and/or terms of sale and payment; and insofar as they 

empower the Code Authority to shorten the waiting period be and 

and they hereby are stayed pending my further order; 

(2) That the provisions of Article VIII, Sections (c) and (f) be 

and they hereby are stayed until I by my further order otherwise 

direct; 

( 3) That the provisions of Article VIII, Section (g) be and they 

hereby are stayed pending the submission of satisfactory evidence 

77616°-1044-13-34-1 (1) 
2 

c v ring th distribution f the produ of the ubdivisi n to t.he 

A lmini trat r · ( 4) That th '- I plicant . hall amen l i on ituti n an l By-Laws 

t the ati faction of th Admini tr~tor within ixty (60) cla, aft r 

th effe ti e dat of thi .o<l . H OH . Jon.t , Administrator fo1' Industrial R covery. 

Approval rec mm nded : 

B..IBTON \V. j\fr"" RRs\Y, 

Div · ·ion Adm,inistrato1·. 

WasmNGTON, D.C., 

August 1, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDEN T, 

The vV hite Howse. 

SrR: This is a report on the Supplemental Code of Fair Competition :for the Diesel Engine Manufacturing Subdivision of l\1achinery 

and Allied Products Industry, a Public Hearing on which was held 

in Washington, D. C., on November 22, 1933, and reconvened December 21, 1933. The Hearing was conducted in full accordance with 

the provisions of Title I of..the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Diesel Engine :Manufacturing 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 Con1petition as provided in Article I of 

the Code of Fair Competition for the :Machinery and Allied Products 

Industry, approved by you on the seventeenth day of March 1934. 

The Diesel Engine 1\1anufacturing Subdivision means the manufacture for sale of Diesel engines an¢1/ or parts thereof, except Diesel 

engines used ( 1) in, and for the propulsion of, aeroplanes, automobiles, trucks or tractors, and (2) in, and for the operation of, 

portable air compressors, and includes all those engaged in such 

manufacture for sale. 

ECONOMIC EFFECT 

The manufacture o:f Diesel Engines is rapidly expanding into 

various new fi eld applications, although the total volume production 

of the Subdivision has been very seriously curtailed from year to 

year since 1929, export volume declining much more, proportionately, 

than dom0 stic production. With any general revival in capital goods 

production the volume of this Subdivision will expand rapidly. 

Volume declined from $26,800,000 in 1929 to $13,415,000 in 1931, or 

practically 50% . The Subdivision estimates that there was a :further 

decline in 1932 to about $8,260,000. Exports in 1929 represented 

almost 14% of total production, and in 1932 only 7.5%. 

Official statistics on employment in the Diese1 engine Subdivision 

are not available. In addition to the 9,588 wage earners in 1929, 

the Subdivision reported about 2,400 executives, supervisory, administrative, and other employees. "\Vage earners in February 1933, 

were estimated at 3,690, rising to 4,420 by July 1933. 

The Research and Planning Division report it is difficult to determine how much r e-employment will be effected in this Subdivision 

as a result of the reduction in hours. This Division estimates hours 

wonld have to be reduced to an average of less than 19 per week in 

order to re-employ the 1929 labor force at the July 1933 level of 

production. 

(3) 
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v rn CT we kly wag to fa tory mploy e amounted to · in 1929 for all ,yao- f r un kill w rker ,_ y F bruary 1933 th av rao- had d line to 1 .91 and 

1' ·- re I c iv 1 but in July, 193 h incr a d to 21.99 and 

1 . ~-thi in r a ... e und ubt c11. being due to the longer rking 

w k pr Yailino- in Jul than in F bruar . 'he wag . pro i ion f r th ubdivi. ion whi h is opcratinound r th de of the ~Ia hin ry and lli d Produ t I ndu. tr , 

pr vide tha mpl e ngao- l in plant peration shall b paid a 

foll ws: (1) in citi f more than 50,000 p pulation and their imm diate vi inity 40 c nts per hour; (2) in citie of more than 10 000 

but not mor than 50 000 population and their immediate vicinit , whi ch citi are not in the immediate vicinity of a city of mor than 

50,000 population, 38 cents per hour; (0) in cities of 10 000 population or le s and their immediate vicinity which citie are not in the 

immediate vicini y of a city of mor than 10 000 population, 36 

cents per hour, except that employee ngaged in plant operation 

in all localities in the states of Virginia, r orth Carolina , outh 

Carolina Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Texas, and Oklahoma, shall be paid not less than 32 

cents per hour. 

When females do substantially the same work as males or replace 

n1ales, they shall receive the same pay. However, no female employee shall be paid less than 871⁄2% of the proper r~te for the 

locality in which employed. 

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

80% of the minimum wage. 

Employees other than those engaged in plant operations shall 

receive not less than $15.00 per week. 

This Supplemental Code provides that no person under sixteen 

years of age hall be employed in this Subdivision. 

RESUl\LE OF iUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Subdivi ion as u ed in this upplemental Code. 

Article III provides for the adoption of the employment provi ions of the Code of Fair Competition for the Machinery and 

Allied Products Industry as approved by you on the eventeenth day 

of 1arch, 1934 and as from time to time am nded. 

Article IV provides for the adoption of Articles II, VI, VIII.} 

and IX of the Code of Fair Comp tition for the Machin ry anct. 

Allied Products Industry in accordance with the condition of this 

Article governing their adoption. 

Article V provides for the establishment of the Code Authority 

and defines it powers and duties. 

rtj le I provides for an accountino- sy t m and methods of co t 

fin in~ and/or e timating. 

Article VII provides that no produ ts shall be old or exchang d 

below a r asonable cost wh n the Code Authority determines that an 

emergency exists. 
5 

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

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

Article IX sets forth trade practices for the Subdivision. 

Article X establishes that no provision of this Supplemental Code 

relating to pricing and marketing shall apply to export trade. 

Article XI: 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. · 

Article XII provides means for withdrawal of this Subdivision 

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

Article XIII establishes that no provision of this Supplemental 

Code shall be so applied a.s to permit monopolies or monopolistic 

practices or to eliminate, oppress, or discriminate against small 

enterprises. 

Article XIV states the effective date of this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

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

basis of all the proceedings in this matter: 

I find that: 

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

policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative act10n among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the 

:fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployn1ent, by improving 

standards of labor, and by otherwise rehabilitating industry. 

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

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

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

with the pertinent provisions of said Title of said Act7 including 

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

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

applicant association is an industrial association truly representative of the aforesaid Subdivision; and that said association imposes 

no inequitable restrictions on admission to membership therein. 

( d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. 
6 

(e) The Supplemental Code is not designed to and will not eliminate or oppr s mall enterprises and ill not operate to discriminate 

ao-ainst them. 

(f) Those encraged in other step of the e onomic proce s have 

not been d prive f the right to be heard prior to approval of said 

Supplemental de. 

For th e r a ons th refore, I have appr ved this upplemental 

ode pro i<led that certain provisions relating to price publication 

in Article III, Section (a) , trading in of u d equipment Article 

III $ection (c), and pooled buying Article VIII, Section (f) are 

stayed as stated in the Order. 

Respectfully, 

AUGUST 1, 1934. 

I-IuoH S. JOHNSON, 

Ad1ninistrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE DIESEL ENGINE MA:t\TUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY Al\TJ) ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I o:f the National Industrial 

Recovery Act, the following provisions are established as a Supplemental Code of Fair Competition for the Diesel Engine Manufacturing Subdivision of the Machinery and Allied Products Industry, and 

taken together with the Code of Fair Competition of Machinery and 

Allied Products Industry shall be the standard of fair competition 

for this Subdivision, and shall be binding on each employer therein. 

ARTICLE II-DEFINITIONS 

"Applic.ant" means the Diesel Engine Manufacturers' Association, 

a trade organization, all members of which are engaged in the manufacture for sale of the products of the Diesel Engine l\1anufacturing 

Subdivision of the Machinery and Allied Products Industry. 1 

"Industry" means the Machinery and Allied Products Industry, 

as defined in its Code of Fair Competition as approved by the President and as such definition may from time to time be amended. 

"Subdivision" means this Diesel Engine Manufacturing Subdivision of the :Machinery and Allied Products Industry as defined and 

set forth in Paragraph 10 of Article II of the Code of Fair Competition of the l\fachinery and Allied Products Industry as follows: 

"Diesel Engine M anufaoturing Subdivizi,on means the manufacture for sale of Diesel engines and/ or parts thereof, except Diesel 

engines u. 0 d (1) in, and for the propulsion 0£, aeroplanes, automobiles, trucks or tractors, and (2) in, and for the operation of, portable 

air compressors, and includes all those engaged in such manufacture 

for saJe." 

"Diesel Engine" is defined to mean any internal combustion 

engine utilizing any liquid fuel other than gasoline, inj ecting such 

fue~ under pressure into the combustion chamber or chambers of said 

engrne. 

"Code" means the Code of Fair Competition for the l\1achinery 

and Allied P roducts Industry, as approved by the President, and as 

from time to time amended. 

"Per .. on ' mean a natural per on, a corporation, a partnership, 

an association a tnL t a trustee, a trustee in bankruptcy, a receiver, 

or other entitv. 

' Employer:' rnrans an} per on engaged in the Subdivision, either 

as an employer of labor or in his own behalf. 

1 See pnr::i.r:;rapb 2 ( 4) of order approving this Code. 

7;61G0--1044-13-8-1-2 {7) 
8 

'" 7h ct 'me, n; Title 1 of the ational In lu trial R overy Act. 

"Th Presicl nt" mean the Pre id nt of th nited State·. 

The clmini 'trat r meanM the dmini trator for Inclu. trial 

R o-,ery. 

Ba. i Co 1 Anth rity mean th Co le Authority for the :Machiner. anrl Allied roducts Industry a con 'titut0 <l b the o 1 . 

"Code Authorit ' means the C le uthority on tituted for this 

Snblfrvj. ion a proYided by the Cocle and by his Su1 plcm ntal Code. 

" Gr up Cocl r uthority ' means th Code Authority for any 

roup or pro luct cla · ·ifi ation within this Subdivi ·ion c n titut cl 

und r the authority of Article V of this Suppl mental Code. 

"Publish ' means to make available to all intere ted parti . 

ARTICLE III-EMPLOYMENT PnovrsroNs 

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

Hours ", Article IV, " ,v ages ", and Article V, " General Labor Provisions", are h reby made a part of this Supplemental Code, with the 

same effect as if they were written into this Supple1nental Code. 

ARTICLE IV-ADOPTION OF PROVISIONS OF CODE 

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

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

be administered as an autonomous Code, are hereby adopted and 

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

they were written into this Supplemental Code. 

ARTICLE V-ADMINISTR.ATION 

(a) To administer and supervise, and to facilitate th performance 

o:f the provisions o:f this Supplemental Code there shall be a committee connected with the Subdivision called the " o le Authority." 

During the period not to exceed sixty days f ollowing the effective 

date of this Supplemental Code the Executive Con.mittee of Applicant shall constitute a temporary Code Authority. The Admini trator may appoint one adJitional member of such temporary Code 

Authority without vote and without expen e to the Subdivi i n. 

The permanent Code Authority shall con ist of fiYe members who 

. hall be connected with employer within the Subdivision. 'll o 

Admini trator may appoint one additiona,l member with ut vote 

and without expense to the Subdivision. The perman°nt ode Authority shall be elected at a m eting of employer call 1 by th 

temporary Code Authority and held within the period of ixty clays 

:following the effective date of this Sur plemental od and hall 

ucceed the temporary Code Authority. T n llay ·' notice of su h 

meeting hall be sent by reo-ister d ma il to all known mr loy rs 

in the Subcli vi:·ion and the notice shall sp ifi ally , tate that voting 

at the meeting may be in p rson or by proxy. 

IT'he memb 0 rs of the permanent Cod nth rity ~hall be el ted 

in the following mann r: (1) One member by , nrnj rity vote of 

employers present in p r on or by proxy, ach e1 player to have one. 
9 

vote, and (2) four members by a fifty-one per r.P.nt vote by employers 

present in per on or by proxy weighted on the basis of one vote for ,, each $100,000 of sales of products of the Subdivision made in the 

calendar year 1932 as reported to the Secretary of Applicant, but 

each employer who reports his sales shall have at least one vote. 

No two members of Code Authority shall be representatives of the 

sam0 employer. Any vacancy due to death or resignation or because 

a member thereof has ceased to be connected with the Subdivision 

shall be filled at a mooting of employers called by Code Authority 

on at least ten days' notice by registered mail sent to all known 

employers in the Subdivision and by a vote similar to the vote by 

which the retired member was originally elected. 

The Code Authority may adopt rules and regulations for its 

procedure and employ such personnel as it may deem necessary. 

Any employer in the Subdivision shall be eligible for membership 

in Diesel Engine Manufacturers' Association. Any employer shall 

be entitled to vote at the election, and share in the benefits of the 

activities, of the Code Authority, and participate in any endeavors 

of Applicant or the Code Authority in the preparation of any revisions of, or additions or supplements to, this Supplemental Code; 

but each such employer shall pay his proper pro rata share of the 

reasonable cost of creating and administering this Supplemental 

Code, as determined by the Code Authority, or by becoming a 

member of Applicant. 

In order that the Code Authority or any Group Code Authority 

shall at all times be truly representative of the Subdivision and in 

other respects comply with the provisions o:f the Act, the Adminjstrator may prescribe such hearings as he may deem proper; and 

thereafter if he shall find that the Code Authority or any Group 

Code Authority is not truly representative or does not in other respects con1ply with the provisions of the Act, may require an appropriate modification of the Code Authority or of any Group Code 

Authority. 

(b) Code Authority shall study in cooperation with such recognized Governmental agencies as the Bureau of Standards, classifica- tions, specifications, and standards of quality, with a view to their 

recommendation to and adoption by the Subdivision. 

( c) Employers having a common interest and common problems 

may be grouped by Code Authority for administrative purposes into 

various groups or product classifications and report of such groupings shall be made to the Administrator. 

In each group or product classification there shall be a Group 

Code Authority appointed by Code Authority. If formal complaint 

is made to Code Authority that any of the provisions of this Sup- plemental Code have b 0 en violated by any employer, such complaint 

shall be immediately reported to the proper Group Code Authority, 

which shall investigate the complaint, and to that end may, to the 

extent permitted by the Act, cause such investigation, examination, 

or undit to be made as may be deemed necessary, and shall report 

the results of such investigation, examination or audit to Code 

Authority. 

( d) The Code Authority may appoint a trade practice committee 

which shall meet with the trade practice committees appointed under 
10 

· Ann LE VI-Ac o NTL.' G A ' D o TI o 

The Cod Auth rity hall cau e to be formulated an ace untin<Y 

y tern and methods of cost finding and/or e timating capable f u e 

by all emplo er of t!1e ubdivision. After such y tem and m thods 

have been formulated, full detail concernino- them hall b made 

available to all employers. Thereafter all em ploy rs c:, ha 11 determine 

and/ r e timate cost in accordance with the I rinciples of uch 

methods. 

ARTICLE VII-SELLING BELOW REASON ABLE Co T 

SE TIO.. 1. ,vhen the Code Authority determines that an mergency exi ts as to any product or products in this Subdivi ion and 

that th cau e thereof is de tructive price-cuttino- such a to render 

ineffective or riou ly endanger the maint nance of the provi ion 

of this Suppl mental Code, the Code Authority may cau e to be 

detennjned the lowe t r a onable co t of such product or product 

of thi Subdivi ion, uch determination to be subject to u h notic 

and hearjng as the A hninistrator may require. The Aclmini trator 

may approve, di. approve, or modify the det rminati n. Th reafter, during the p rio l of the emergency, it shall be an unfair trad 

practice for an emplo3 er of the Sub Evi ion to ell or offer to 11 

any product or pr ducts f thE: Subdivi ion for which the lowe t 

rea onable co t ha been determined at uch pri s or upon uch 

term or condition of ale that the buyer will pay les th r for 

than the lowest rea onable co t of such produ t . 

vVhen it appear that conditions have changed, the od Authority upon it own ini iative or upon the requ t f an inter tecl 

party, hall cau. e the d termination to b revi wed. 

ECTION 2. The f r o-oino- Se tion (1) hall n t appl 1 t (a) 

dropp d lin or ( b) econ 1 , r ( ) in ntori whi h mu be 

on, ert cl into a h to m t m ro- ncy nc d.. all f whi h ma3 b 

li po. l of by an. emr t· ·er at un prir arnl _, an ' t('rm. r 

nclibon. , but oriJ,y il' , url employer not 1 s than tw week befor .-u 11 pro os cl 1i. r,, a-: has fil d with o l uth rjty a .. · :1t -

1 ent in writino- tt?n~ f ortl: tLc f ct of an l r 'a. ons fo r. ~·m.:h 

propo. 1 dj, po:al . ;cd the "'rir anrl rm. an l <' rnlitions of . a le. 

and le nthorit. h. ~ ;1ot (, ·ith th approYal of J.L 1 ni1 i · 

trator) bf'for the t rminn.ti on of . u ·h wo · ,,k pcrioc.1, in "rit'ng: 

di.-approYed the pr p sed di. osal. 
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SECTION 3. The foregoing Section (1) shall not apply to a sale 

made in order to meet competition on products manufactured outside the United States. For such disposal, any employer may sell, 

at prices and on terms and conditions as favorable as those of the 

competing foreign J?roduct, but only if he has first reported to the 

Code Authority his intention so to sell, and the facts as to the compe- tition which justifies such actjon. 

For the purpose of gathering statistical data for the determination or revision of a lowest r easonable cost under this Article VII, 

the Code Authority shall have power2 on its own initiative, or on 

the request of any employer, to investigate, to the extent permitted 

by the Act, any price or the terms of sale and payment for any 

product or products of this Subdivision manufactured by any em• 

ployer; and, for the purpose of the investigation thereof, to require, 

to the extent permitted by the Act, such employer to :furnish such 

information concerning the cost of manufacturing a.nd selling such 

product or products as the Code Authority shall deem necessary or 

proper for such purpose. 

ARTICLE VIII-PRICE LISTS 

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

of the Subdivision it has been the generally recognized practice to 

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

with discount sheets, and fixed terms of sale and payment, each 

employer manufacturing such product shall, within ten (10) days 

after notice of such determination, file with the Code Authority, a 

net price list, or a price list and discount sheet, as the case may be, 

individually prepared by him, showing his current prices, or prices 

and discounts, and terms of sale and payment, and the Code Authority shall immediately publish and send copies thereof to all known 

employers in the Subdivision manufacturing such specified product. 

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

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

Code Authority by any employer manufacturing such product, but 

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

and payment shall be filed with the Code Authority twenty (20) days 

in advance of the effective date specified. The Code Authority or 

the proper Group Code Authority may establish a shorter period at 

any . time, provided no revisions then waiting operative date shall 

be affected thereby. Copies of such revised price lists and/ or discount sheets and/ or terms of sale and payment with notice of the 

effective date specified, shall be immediately published and sent to 

all known employers in the Subdivision manufacturing such product, any of whom may file, if he so desires, to become effective upon 

the date when the revised price list and/ or discount sheet and/or 

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

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

payment establishing prices or prices and discounts not lower or 

terms of sale and payment not bett~r than those established in the 

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

payment first filed. 2 

2 See paragraph 2 (1) of order approving this Code. 
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(b) If an l whe 1 the Co 1 nthoritv shall determine that in any 

gr up of th ubclivi i n n t n w lling it pr lu t on the ba i 

f pri e Ii t , i h or ith 1t li c unt h with fix J t rm 

al and pa~ ·m nt th di tril nti n or mark ting nditi ns in ail 

r up ar th am a or imilar t ~ th di iribu ion or marketing 

n li i n. in a grour f th ubdivi i n wh r th u f price 

li t with r with ut di. c unt h et and fix t rm of al and 

paym nt i well r c crniz cl an l that a y t m of llinrr on n t 

I rice li~ · or pri li t an l di ount h "ith fix d t rm f 

al an l pa ·m nt h ulcl be put int ff t in su h r up then ach 

mpl ycr manufa turing th pro luct or pr due of uch aroup hall 

within tw nt ( 0 lay af r notice of 1ch l terminati n file ith 

th cl uthorit n t pric lists or price Ii and li count sheet , 

containin fixe l term of sale and pa ment howina his current 

pri e an l di conn and terms of ale and payment and uch price 

Ii t and/ or di count sheets and/ or terms of ale and pa ment shall 

be publi hed and sent to all known emplo er in the ubcli i ion 

manufacturing uch product and may thereafter be revi ed in the 

manner hereinabove provided; ,Provided, however that the Code 

uthority hall make no determination to place any product of the 

Subdivi ion (not now on a price list basi ) on a price li t ba. is, 

a proYided in this paragraph (b) of Article VIII, unle s affirmative 

con ent to such determination is given by a 66% per cent vote of employer in the Subdivision who are at that time engaged in manufacturing such product, and who are entitled to vote pur uant to 

the pro vi ions of Section (a) of Article V hereof, weighted on the 

ba i of one vote for each $50,000 of sales of products of the Subdivi ion made in the latest previous calendar year for which stati tics have been reported to Code Authority, provided, however, 

ihat ea h employer who reports his sales shall have at lea tone vote. 

(c) o emplo ·er shall take or accept in trade any second-hand 

or old equipment in part payment for new equipment, provided how-

,er that this paragraph shall not be construed to prohibit the return 

to the vendor within one year from the date of shipment of and the 

allowance by the vendo-r of any fair adjustment on an product 

which hall not have met the specified :purposes f r hich it was 

sold. Any employer may assist in finding 11 bona fide bu er for 

econd-hand or old equipment, but in no case shall he guarantee 

any :particular return thereon or therefor.8 

( d) Each employer shall prepare, and shall furnish the Code 

Authority for di tribution with such number of copies of his price 

li. ts and/ or di count sheets and terms of sale and pa m nt a Code 

Authority may require for administration and di tribution. 

( ) o ernpl yer shall bid, quote or s 11 dir tl or indirect! 1 b 

nn r m ans whatsoeYcr any product of the Subdivi-ion o r d by 

tl I r vi ·ion of this Article VIII at a pri e or at di count or on 

terms of ale an payment different from those pro,ided in hi o n 

curren ne l)l'i li t , or price li ts and discount heet with terms 

of . al and pa 'men . 

( f) ... o empl •er hall s 11 to or throu?"h an broker jobber comi · i n ace unt r al agency (this is known in the trade as 

' po l d buyino- ) who or which i in fact an agent for an organiza-

• See pnragrnph 2 (2) of order approving this Code. 
13 

tion of retailers or industrial consumers, with the result that any 

r etailer or industrial consumer secures a discount, allowance or price 

d ifferent from the di count, allowance or price provided for purchasers of the same class in the employer's own current net price 

list or ~rice lists with discount sheets.8 

(g) o employer shall sel~ to or through _any di tribu_t~r who 

shall fail to agree to resell in accordance with the provis10ns of 

Articles II, VIII and IX of this Supplemental Code.4 

ARTICLE IX- U:r-.""FAIR PRA..ar:ICES 

(a) No employer shall pay or allow any rebate, credit, subsidy or 

discount, in money or otherwise, with intent to influence any sale; 

except as expressly pron.ded in written quotations, written contracts 

or invoices, or in price lists, di count sheets, or terms of payment 

filed with Code Authority. 

(b) No em]?loyer shall pay or promise to pay money, or give or 

promise to give any valuable thing, to any aaent, :fiduciary, or 

representative with or without the knowledge of his principal for 

the purpose of influencing any sale to his principal. This commercial bribery provision shall not be construed to prohibit free and 

general distribution of articles commonly used for advertising except 

so far as such articles are actually used for commercial bribery as 

herein defined. 

( c) Jo employer shall untruthfully advertise, represent or mark 

any product with intent to deceive or mislead prospective purchasers. 

(d) No employer owning a patent or trade mark shall intimidate 

customers of alleged infringers of such patent or trade mark by 

threats of suit not made in good faith. -

(e) So long as any employer, or- his successor in business, manufacturing any product of this Subdivision which bears the manufacturer's name or trade mark and which has required special designing, research or development expense continues to make and supply 

such spare, repair or replacement parts for such product, no other 

employer shall supply such spare, repair, or replacement parts for 

such product unless (1) the name of the actual manufacturer of such 

parts shall be plainly marked on each part, or, if this is impracticable, on the package or tag, and (2) in catalogues, price lists, 

quoted prices, ad"'erti ements, or adverti ing literature the ultimate 

u er shall be clearly informed that such parts were not made by 

the original manufacturer of the product for which such parts are 

supplied. 

(f) ro employer shall furnish to any purchaser (except the United 

States Government and the owners of ocean going ships, or as may 

be required by the American Bureau of Shipping, or Lloyds) and/ or 

his agents, directly or indirectly, detailed shop drawings of the 

products of this Subdivision without filing a statement of such 

propo ed disposal with the Code Authority which may approve, or 

with the approval of the Admini trator, may disapprove the disposal 

within twenty days by written notice to the employers. 

(g) No employer shall disseminate false or misleading or disparaging information relative to competitor s products, selling prices, 

'See paragraph (8) of order approving this Code. 
14 

r pu · tion, redi or financial tandino-, abilit t p rf rm w rk or 

m~ k d liveri . (h) To mpl , r hall wilfull r int rf r by an m an or <l vi e 

"TT"hat vcr with an cxi tino- nun rcic 1 con r ·t or or l r <l alinoith the produ tion manufactur tran I ortati n, purchase r ale 

of an r pr du t f th ubdiYision. 

AnTI LE X- ALE FOR ExroRT 

Th prov1 ·1011 of this Supplem ntal pri ing ancl 

mark tlno- hall not apply to direct xp rt al s of an product. 

~imilar ex mption may be ()'ranted by th Cod Authorit a to ales 

of any produ t d tin d ultimat ly f r export. nle oth rwi e 

d termined by the d Authorit , the term ' export ' hall include 

all hipments to all places without th ev ral tates of the nit cl 

tate and the Di trict of Columbia· provided however that no 

hipment to any territory or posse ion of the nit d tate hall 

be nsidered as :sport when. any mployer is engaged in the 

Subdi ision in such territory or po · e ion. 

ARTICLE XI-MonIFICA.Trox AND TERMI T ATI N 

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

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

or regulation issued under Title I of the Act. 

(b) Any additions to, amendments, revisions, or suppl ments of, 

this Supplemental Code, approved by a 66% per cent vote of employers in the Subdivision "TT"ho are entitled to vote pur uant to the 

provisions of Section (a) of Article V hereof, weight d on the 

basis of one vote for each $100 000 of sales of product of the Subdivision made in the latest previou calendar year for which tati - tics have been reported to Code Authority, provi led h ,Yever that 

each employer who reports his sales hall have at 1 a t one vote, 

shall be in full force and effect upon approval by the dmini trator. 

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

on uch date prior thereto when the Act shall be r p aled or the 

Pre ident shall, by proclamation, or the Congre hall by joint 

re, olution, direct that the emergency r ogni:t: d b3 ction 1 f the 

Act ha ended. 

ARTICLE XII-"\V ITIIDRA w AL 
15 

and VII as are not pertinent thereto, as determined by the Code 

Authority and the Administrator, shall become and be the Code 

governing this Subdivi ion, and the Code Authority, shall for this 

Subdivision, become and be the only Code Authority, and shall per- f orm all the functions with respect to such Code. 

ARTICLE XIII-~iONOPOLIES 

. The Supplemental Code presented by it is not designed to promote monopoly, and hall not be so construed or applied as to oppress or eliminate small enterprises or discriminate against them, 

and is designed to effectuate the policy of the Act. 

ARTICLE XIV- EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on 

all persons engaged in the Subdivision on the eleventh day after its 

approval. 

Appr oved Code No. 347- Supplement No. 40. 

R egistry No. 1312-01. 

0 

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UNIVERSITY OF FLORIDA 

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