Approved Code No. 84-Supplement No. 48 Registry No. 1122-21

NATIONAL RECOVERY ADMINISTRATION

SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE

PERFORATING

MANUFACTURING INDUSTRY

AS APPROVED ON AUGUST 31, 1934

.... MRE It

WE DO OUR PAR

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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

Printing Office, wXashington, D.C .,.nd by district offices of the Bureau of

Foreign and Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.

Birmingham, Ala.: 257 Federal Building.

Boston, Mass.: 1801 Customhoise.

Buffalo, N.Y.: Chamber of Commerce Building.

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

Chicago, Ill.: Suite 1706, 201 North Wells Street.

Cleveland, Ohio: Chamber of Commerce.

Dallas, Tex.: Chamber of Commerce Building.

Detroit, Mich.: 801 First National Bank Building.

Houston, Tex.: Chamber of Commerce Building.

Indianapolis, Ind.: Chamber of Commerce Building.

Jacksonville, Fla.: Chamber of Commerce Building.

Kansas City, Mo.: 1028 Baltimore Avenue.

Los Angeles, Calif.: 1163 South Broadway.

Louisville, Ky.: 408 Federal Building.

Memphis, Tenn.: 229 Federal Building.

Minneapolis, Minn.: 213 Federal Building.

New Orleans, La.: Room 225-A, Customhouse.

New York, N.Y.: 734 Customhouse.

Norfolk, Va.: 406 East Plume Street.

Philadelphia, Pa.: 422 Commercial Trust Building.

Pittsburgh, Pa.: Chamber of Commerce Building.

Portland, Oreg.: 215 New Post Office Building.

St. Louis. M.: 506 Olive Street.

San Francisco, Calif.: 310 Customhouse.

Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 84-Supplement No. 48

SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

PERFORATING MANUFACTURING INDUSTRY

As Approved on August 31, 1934

ORDER

APPROvTNG SUPPLEMENTARY CODE OF FAIR COMPETITION FOR TIH

PERFORATING MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND

METAL FINIsHING AND METAL COATING 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, and in accordance with the

provisions of Section 1 of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and

Metal Coating Industry, approved November 2, 1933, for approval

of a Supplementary Code of Fair Competition for the Perforating

Manufacturing Industry, and hearing having been duly held thereon;

and the annexed report on said Supplementary 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 December

30, 1933, and otherwise; do hereby incorporate by reference said

annexed report and do find that said Supplementary 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 Supplementary Code of Fair Competition be and it is

hereby approved; provided, however, that the provisions of Rule

12, Article VIII be and they hereby are stayed pending my further

Order.

Hu11(;I S. JOHNsON,

A dinisnutrator for Industriad Recovery

Approval recoimended:

BARTON AV. TkRlRAY,

I iviyion A dministrat or.

WASHINGTON, 1).C.,

AuY ust 31, 1934.

RAs318*--1181-1-34 (1)
REPORT TO THE PRESIDENT

The PRESIDENT,

The White House.

SIR: This is a report on the Supplementary Code of Fair Competition for the Perforating Manufacturing Industry, a division of the

Fabricated Metal Products Manufacturing and Metal Finishing and

Metal Coating Industry, the hearing having been conducted thereon

in Washington, D.C., April 9, 1934, in accordance with the provisions

of Title I of the National Industrial Recovery Act.

GENERAL STATEMENT

The Perforating Manufacturing Industry, being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to

avail itself of the option of submitting a Supplementary Code of

Fair Competition, as provided for in Section 1 of Article VI of the

Basic Code, for the Fabricated Metal Products Manufacturing and

Metal Finishing and Metal Coating Industry, approved by you on

the second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the

Supplementary Code.

Article III. This Industry is a division of the Fabricated Metal

Products Manufacturing and Metal Finishing and Metal Coating

Industry and the labor provisions of its Basic Code, as approved

November 2, 1933, are the labor provisions of this Supplementary

Code.

Article IV establishes a Supplementary Code Authority consisting

of live (5) members to be elected by the members of the Industry at

a meeting called by the Temporary Supplementary Code Authority, and gives the Administrator the authority to appoint one additional

member without vote and provides machinery for obtaining statistics

and the administration of the Supplementary Code.

Article V provides for the formulation of an accounting system

and methods of cost finding and/or estimating.

Article VI provides against selling below allowable cost as determined by a uniform method of costing.

Article VII provides for methods of setting up and revising price

lists.

Article VIII sets forth the unfair trade practices of this Supplementary Code which has been especially designed to offset unfair

competition in this division of the Industry.

Article IX provides against monopolies and monopolistic practices.

Article X contains the mandatory provisions contained in Sec-

(2)
3

tion 10 (b) and also )rovides for the subimis sion of proposed aiiiendments to the Supplementary Code.

Article XI reCOnizes that price increases be limited to Htual

additional increases in seller's costs.

Article XII states the effective date of this Supplementary Code.

FINDINGS

The As-i-tant Deputy Adininistrator in his final report to mc on

said Sul)plenentary Cde having found as herein set forth an on

the basis of all the proceedings in this matter:

I lind that:

(a) Said Supplementary 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 coninierce which tend to diminish the amount thereof

and will provide for the general welfare by promoting the organization of industry for the purposes of cooperative action among the

trade groups. by inducing and maintaining united action of labor and

management under adequate governmental sanctions and sulervision, by eliminating unfair cmnipetitive practice-, by prolotin', 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 purchiasing

power, by reducing and relieving unemployment, by impr-ming

standards of labor, and by otherwise rehabilitating industry.

(b) Said Industry normally employs not more than 50,000 employees and is not classified by me as a major industry.

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

with the pertinent >rovisions of said Title of said Act, 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 Industry; and that said association imposes no

inequitable restrictions on admission to membership therein.

(d) The Supplementary Code is not designed to and will not

permit monopolies or monopolistic practices.

(e) The Supplementary Code is not designed to and will not eliminate or opprei'C small enterprises and will not operate to disvriminate

against them.

(f) Those engaged in other steps of the economic process have

not been deprived of the right to be heard prior to approval of said

Supplementary Code.

For these reasons, therefore, I have approved this Supplementary

Code.

Respectfully,

IHuui S. JoHNsoN,

Admin istrator.

AunsiT 31, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR

THE PERFORATING MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND

METAL FINISHING AND METAL COATING INDUSTRY

ARTICLE I-PURPOSES

To effectuate the policies of Title I of the National Industrial

Recovery Act, the following provisions are established as a Supplemientary Code of Fair Competition for the Perforating Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair

Competition for the Fabricated Metal Products Manufacturing and

Metal Finishing and Metal Coating Industry, approved by the

President of the United States on the second day of November, 1933, and the provisions of this Supplementary Code shall be the standards

of fair competition for such Industry and shall be binding upon

every member thereof.

ARTICLE II-DEFINITIONS

SECTION 1. The term " Industry " as used herein means the manufacture for sale of perforated sheet, strip and/or plate materials.

This does not include >roducts made from perforated materials as

defined in the Code of V air Competition for the Warm Air Register

Industry as approved on June 28, 1934.

SECTION 2. The terms " President ", "Act" and "Administrator"

as used herein shall mean respectively the President of the United

States, Title I of the National Industrial Recovery Act, and the

Administrator for Industrial Recovery.

SECTION 3. The term " Member of the Industry " as used herein

includes but without limitation any individual, partnership, association, corporation or other form of enterprise engaged in the Industry, either as an employer or on his own or its own behalf.

SECTION 4. The term " Basic Code " as used herein is defined to

mean the Basic Code of Fair Competition for the Fabricated Metal

Products Manufacturing and Metal Finishing and Metal Coating

Industry as approved by the President of the United States on the

second day of November, 1933.

SECTION 5. The term " Supplementary Code Authority " as used

herein means the agency which is to administer this Supplementary

Code as hereinafter provided.

SECTION 6. The term "Association " as used herein is defined to

mean the Perforated Metal Manufacturers Association or its successor.

SECTION 7. The term " Federation " as used herein is defined to

mean the Fabricated Metal Products Federation or its successor.

SECTION 8. The term " Employee " as uted herein includes any and

all persons engaged in the Industry, however compensated.

(4)
5

SrCTio-N 9. The term " Employer " as u'sed herein includes anyone

by whom ; uch e1m1ployee is coImI pens :Ited or emp1 lt)Yed.

AuRTI. IC I U-EMILOY MENT P WL-1.osNS

This Idu1is.trY is a divisioii of the Fibricted Metal Prodiits Mantifact-rinu. and Metal Finishing and Metal C(natinl lndivtry and

witholit Iiiitation the wvag.e, I houir, and i1aior pro Dvi -in e in Article

III of it Ba i Code as approved by the President Noveiber 2 1933,

including Section 1 of said Article III by Which the provLsions of subsection (1) (2) and (3) of Section 7 (a) of Title I of the Act are

made conditions of this Code, are specifically incOr porate l%1rei,

and made a part hereof as the wage, hour and labor provisions of

this Supplementary Code.

ARTICLE I-ORGANIZATION AND ADMINISTRATION

SECrroN 1. During the period not to exceed sixty (60) days following the effective date of this Supplementary Code, the Supplemnentary Code Committee of the Industry shall constitute a temporary Supplementary Code Authority until the Supplemeiitarv Code

Authority is elected. There shall be constituted within the sixtyday period a Supplementary Code Authority consisting of five members to be elected by the members of the Industry, at a meeting

called by the Temporary Supplementary Code Authority. The

ienbers of the Supplementary Code Authority first elected shall

werve until the following annual meeting of the Association, and

thereafter members of the Supplementary Code Authority shall be

elected by the members of the Industry at a meeting of the members

of the Industry to be held at the time and place of each annual meeting of the Association, to serve until the following annual meeting.

Fifteen (15) days' advance notice of all meetings to be held hereunder shall be sent by Registered Mail to all members of the Industry whose names may be ascertained by diligent search, and who

may vote either in person or by proxy. The members of the Supplemnentary Code Authority shall be elected in the following manner:

(a) One member who shall be a member of the Association by a

majority vote of all members of the Industry present in person or

by proxy, each member to have one vote.

(b) One member who shall be a member of the Industry and a

on-member of the Association by a majority vote of all the members

(f the Industry who are not members of the Association, present in

person or by proxy, each member to have one vote.

(c) Three (3) members who shall be members of the Association,

by a majority vote of all votes cast by all members of the Association, present in person or by proxy, weighted on the basis of

1. One (1) vote for each member of the Association, and

2. Two (2) additional votes for the first ten (10) or fraction

thereof of shop employees of each member of the Association, and

one (1) additional vote for each ten (10) or fraction thereof of all

additional employees, averaged over the previous calendar year as

reported to the Suppleientary Code Authority, provided, however

that no one member of the Association may cast more than 25% 0

the toal number of votes cast.
6

If the members of the Industry who are non-members of the Association fail to elect a member of the Supplementary Code Authority

as provided in subsection (b) of this Section, then a member of the

Industry who is a non-member of the Association shall be elected by

a majority vote of all members of the Industry then present in

person or by proxy, each member to have one vote.

A vacancy in the membership of the Supplementary Code Authority shall be filled by majority vote of the remaining members of

the Supplementary Code Authority, provided, however, that the

member of the Supplementary Code Authority who is chosen to fill

such vacancy shall be elected from the class of membership in which

the vacancy has occurred. In addition thereto the Administrator

may appoint one member who shall serve without vote on the Supplementary Code Authority and without expense to the Industry.

The member so appointed by the Administrator, together with the

Administrator, shall receive notice of and may sit at all meetings

of the Supplementary Code Authority.

SECTION 2. Each Trade Association directly or indirectly participating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions on admission to

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

Articles of Association, By-Laws, regulations, and any amendments

when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem

necessary to effectuate the purposes of the Act.

SECTION 3. In order that the Supplementary Code Authority

shall, at all times, be truly representative of the Industry and in

other respects comply with the provisions of the Act, the Administrator may prescribe such Hearings as he may deem proper; and

thereafter, if he shall find that the Supplementary Code Authority

is not truly representative or 4oes not in other respects comply wit

the provisions of the Act may require an appropriate modification

of the Supplementary Code Authority.

SECTION 4. It being found necessary in order to support the administration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effectuate the

policy of the Act, the Supplementary Code Authority is authorized:

(a) To incur such reasonable obligations as are necessary and

proper for the foregoing purposes and to meet such obligations out

of funds which may be raised as hereinafter provided and which

shall be held in trust for the purposes of the Supplementary Code.

(b) To submit to the Administrator for his approval, subject to

such notice and opportunity to be heard as he may deem necessary

(1) an itemized Budget of its estimated expenses for the foregoing

purposes, and (2) an equitable basis upon which the funds necessary

to support such budget shall be contributed by members of the

Industry.

(c) After such budget and basis of contribution have been approved by the Administrator, to determine and obtain equitable contribution as above set forth by all members of the Industry, and to

that end, if necessary, to institute legal proceedings therefor in its

own name.

Each member of the Industry shall pay his or its equitable contribution to the expenses of the maintenance of the Supplementary
7

Code Authority, determined as hereinabove provided, and subject to

rules and regulations pertaining thereto issued by the Ah(1ninistrator.

Only members of the Industry complying with the Supplementary

Code and contributing g to the expenses of its administration as hereinabove provided, unless duly exempted from nuiking such contributions, shall be entitled to participate in the selection of members

of the Supplementary Code Authority or to receive the benefits of

any of its voluntary activities or to make use of any eibleim or

insignia of the National Recovery Administration.

The Supplementary Code Authority shall neither incur nor pay

any obligations substantially in excess of the amount thereof as estimated in its approved budget, and shall in no event exceed the total

amount contained in the approved budget, except upon approval of

the Administrator; and no subsequent budget shall contain any deficiency item for expenditures in excess o prior budget estimates

except those which the Administrator shall have so approved.

SECUOIW 5. Nothing contained in this Supplementary Code shall

constitute the members of the Supplementary Code Authority partners for any purpose. Nor shall any member of the Supplementary

Code Authority be liable in any manner to anyone for any act of

any other member, officer, agent, or employee of the Supplementary

Code Authority, nor shall any member of the Supplementary Code

Authority, exercising reasonable diligence in the conduct of his

duties hereunder, be liable to anyone for any action or omission to

act under this Supplementary Code, except for his own wilful malfeasance or nonfeasance.

SECTION 6. The Supplementary Code Authority shall also from

time to time furnish to the Basic Code Authority, designated in said

Basic Code, such information as may be required to be furnished

under the terms of said Basic Code.

SECTION 7. Subject to such rules and regulations as may be issued

by the Administrator, the Supplementary Code Authority shall have

the following powers and duties, in addition to those authorized by

other provisions of this Supplementary Code.

(a) To insure the execution of the provisions of this Supplementary Code and to provide for the compliance of the Industry

with the provisions of the Act.

(b) To adopt by-laws an( rules and regulations for its procedure.

(c) To obtain from members of the Industry such information

and reports as are required for the adlministration of the Supplementary Code. In addition to information required to be submitted

to the Supplementary Code Authority, members of the Industry

subject to this Supplementary Code shall furnish such statistical

information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State

agencies as he may designate; provided that nothing in this Supplementary Code shall relieve any member of the industry of any

existing obligations to furnish reports to any Government agency.

No individual report shall be disclosed to any other member of the

Industry or any other party except to such other Governmental

agencies as may be directed by the Adninistrator.

(d) To use such Trade Associations and other Agencies as it

deems proper for the carrying out of any of its activities provided for
8

herein, provide(l that nothing herein shall relieve the Supp

Code Authority of its duties or responsibilities under thi

nientary Code and that such Trade Associations and Agen

at all times be subject to and co mply with the provisions lh

(e) To iake recoimmendatio1s to the Administrator f

ord nation of the administration of this Supplementary 

such other Codes, if any, as may be related to or affect the 

of the Indistry.

(f) TJ appoint a Trade Practice C'ommnittee which shall 

the Trade Practice Committees appointed under such othe

may be related to the Industry for the purpose of formu

trade practices to govern the relationships between employ

this Supplenentary Code and tinder such other codes to th

such fair trade practices mnay be proposed to the Adm

as ainendlments to this Supplementary Code and such ot

(g) To reconuend to the Administrator any action or 

deemed advisable, including further fair trade practice 

to govern members of the Industry in their relations 

other or with other Industries; measures for industrial 

anl stabilization of employment; and including modifi

this Supplementary Code which shall become effective as p

upon approval by the Administrator after such notice an

as he may specify.

SECTION 8. If the Administrator believes that any act

Stipplementary Code Authority or any agency thereof is 

unjust or contrary to the public interest, the Administ

require that such action be suspended to afford an oppor

investigation of the merits of such action. Further actio

Supplementary Code Authority or Agency regarding t

complained of may be taken if approved by the Adminis

shall not be taken if disapproved by the Administrat

thirty days of notice to him of intention to proceed 

action.

SECTION 9. To the extent permitted by the Act and subj

rules and regulations as the Administrator may prescribe

plementary Code Authority shall have power to inves

complaint filed with it regarding an alleged violation of th

imentary Code.

ARTICLE V-COST FINDING

The Supplementary Code Authority shall cause to be f

methods of cost finding and accounting capable of use by 

bers of the Industry, and shall submit such methods t

ministrator for review. If approved by the Administ

information concerning such methods shall be made avail

members shall ing Code to uniform uniformity siiggtrest herein utilize Authority, items of of contained shall uniform additions, of the such costs Industry. any methods cost or agent prices. which be Thereafter, to thereof, construed are the prcentages designed extent or each to any found permit to or member member bring differentialpracticabthe of about of Suppthe 
9

AimcLE VI-COSTS AND PRICE CUrrING

SECTION 1. The standards of fair competition for the Industr

reference to pricing practices are declared to be as follows:

(a) Wilfully destructive price cutting is an unfair meth

competition and is forbidden. Any member of the Industry 

any other Industry or the customers of either may at any tim

plain to the Supplementary Code Authority that any filed pric

stitutes unfair competition as destructive price cutting, imp

small enterprise or tending toward monopoly or the impairm

code wages and working conditions. The Supplementary Cod

thority shall within five (5) days afford an opportunity to the 

ber filing the price to answer such complaint and shall within 

teen (14) days make a ruling or adjustment thereon. If such 

is not concurred in by either party to the complaint, all paper

be referred- to the Research and Planning Division of N.R.A. 

shall render a report and recommendation thereon to the A

istrator.

(b) When no declared emergency exists as to any given pr

there is to be no fixed minimum basis for prices. It is intende

sound cost estimating methods should be used and that con

tion should be given to costs in the determination of pricing p

(c) When an emergency exists as to any given produc

below the stated minimum price of such product, in violat

Section 2 hereof, is forbidden.

SECTION 2. Enwrgency Provision.-(a) If the Adminis

after investigation shall at any time find both (1) that an eme

has arisen within the Industry adversely affecting small enter

or wages or labor conditions, or tending toward monopoly or 

acute conditions which tend to defeat the purposes of the Ac

(2) that the determination of the stated minimum price for a 

fied product within the Industry for a limited period is necess

mitigate the conditions constituting such emergency and to effe

the purposes of the Act, the Supplementary Code Authority 

cause an impartial agency to investigate costs and to recomm

the Administrator a determination of the stated minimum pr

the product affected by the emergency and thereupon the A

istrator may proceed to determine such stated minimum pric

(b) When the Administrator shall have determined such 

minimum price for a specified product for a stated period, 

price shall be reasonably calculated to mitigate the conditions o

emergency and to effectuate the purposes of the National Indu

Recovery Act, he shall publish such price. Thereafter, during 

stated period, no member of the Industry shall sell such sp

products at a net realized price below said stated minimum 

time and any view minations action Supplementary SECTION to of taken. time, reconsideration such hereunder 1. the Within sale Supplementary Code, shall ARTICLE to sixty be the be or reviewed deemed the (6) Supplementary VII-OPEN Administrator Code days destructive or Authority after reconsidered PRICE the Code may price effective may cause Athority and cutting. recommeapprodate any o
10

designate what products of the Industry are to be sold 

list basis. Each member of the Industry shall file wit

dential and disinterested ag ent of the Supplementary Co

ity, or, if none, then with such an agent designated by th

istrator, identified lists of all of his prices, discount

allowances, and all other terms or conditions of sale, h

in this Article referred to as " price terms," which lists 

pletely and accurately conform to and represent the indiv

img practices of said member. Such lists shall contain 

terms for all such standard products of the Industry as 

offered for sale by said member and for such non-standard 

of said member as shall be designiated by the Supplemen

Authority. Said price terms shall in the first instance be f

eighty (0) days after the date of approval of this provisi

teris and revised price terms shall become effective im

upon receipt thereof by said agent. Immediately up

thereof, said agent shall by telegraph or other equally pro

notify said nmember of the time of such receipt. Such li

Visions, together with the effective time thereof, shall up

be immediately and simultaneously distributed to all mem

Industry and to all of their customers who have applie

and have offered to defray the cost actually incurred by 

plementary Code Authority in the preparation and d

thereof and be available for inspection by any of their 

at the office of such agent. Said lists or revisions or any p

shall not be made available to any person until relea

members of the Industry and their customers, as afore

vided, that prices filed in the first instance shall not b

until the expiration of the aforesaid eighty (80) day pe

the approval of this Supplementary Code. The Supp

Code Authority shall maintain a permanent file of all p

filed as herein provided, and shall not destroy any pa

records except upon written consent of the Administrat

request the Supplementary Code Authority shall furni

Administrator or any duly designated agent of the Adm

copies of any such lists or revisions of price terms. Th

mentary Code Authority may, from time to time, desig

tional and other products of the Industry to be sold on a 

basis and, beginning ten (10) days after the members of th

shall have been notified of such designation and there

provisions of this Article shall apply to the sale of such 

SECTION 2. When any member of the Industry has 

revision, such member shall not file a higher price within 

(48) hours.

SECTION 3. No member of the Industry shall sell or o

ment, been accordance try andy price o any SECTION to products/services open terms, filed understanding, change other market 4. with pursuant nor influence No hisuch cause member which price toprice combination or inconsistent of terms the it attempt of the trms. is the provisions Industry, the by Industry to the purpose with or cause conspiracy use for theof shall any of of this which mantenance intimidationthis member of enter Aticle, to Article price fix into ot
11

ARTICLE VIII-UNFAR TrADE PRACCEs

In addition to the Unfair Trade Practices covered by Arti

(excepting Section A) of the Basic Code as though herein rep

and set forth at length. and for all purposes of this Suppleme

Code, the following described acts shall constitute unfair pra

Any member of the Industry who shall directly or indirectly th

any officer, employee, agent, or representative use or employ 

of such unfair practices shall be guilty of a violation of this Su

mentary Code.

RULE 1. Threes of Litigation.-No member of the Industry 

publish or circulate unjustified or unwarranted threats of 

proceedings which tend to have the effect of harassing comp

or intimidating their customers.

RULE 2. Extension of Credit Tcrms.-No member of the In(

shall give extended time beyond the cash discount net payme

riod established in filed price lists, or expressed in specific q

tions. This shall not prevent any member of the Industry 

allowing extended time to any purchaser at the rate of (, 

annum.

RuLE 3. Selling on Coisignment.-No member of the Ind

shall ship goods on consignment except under circumstances 

defined by the Supplementary Code Authority and approved b

Administrator, where peculiar circumstances of the Industr

quire the practice.

RULE 4. Inducing Breach of Existing Con tracts.-No memb

the Industry shall wilfully induce or attempt to induce the b

of existing contracts between competitors and their custome

any false or deceptive means, or interfere with or obstruct the 

formance of any such contractual duties or services by any 

means, with the purpose and effect of hampering, injuring o

barrassing competitors in their business.

RULE 5. Coercio.-No member of the Industry shall require 

the purchase or lease of any goods be a prerequisite to the pur

or lease of any other goods.

RULE 6. GiVing of Prizes, Premium9 or Gifts.-No member 

Industry shall offer or give prizes, premiums or gifts in conn

with the sale of products, or as an inducement thereto, by 

scheme which involves lottery, misrepresentation or fraud.

RULE 7. Espio-nage of Comrpetitars.-No member of the Ind

shall secure confidential information concerning the business 

competitor by a false or iitisleading statement or misrepresent

by a false impersonation of one in authority, by bribery, or b

other unfair method.

RULE 8. Guarantees against Price Change.'s.-No member o

effect Industry of aspproval the employee RULE are protection 30 splitting of influencing days, defined 9. of shall or COinMn-P88ions.-NO except the of inagent, by make commissions Administrator. any the for a with form Suippleientary or sale. such give, the against products or member buyer, or other offer changes Codean fr compensation of to the the purpose under make in Authority, price Industry or such bey give receivedircumstsubject shall or iond guarawita pbp
12

RuLE 10. combination of Sales.-No member of the Indu

for the purpose of influencing a sale, sell or offer to sell 

modity other than a product of this Industry in combina

any product of this Industry at a price which will yield to 

less than the total cost to him.

No member of the Industry shall, for the purpose of i

a sale, sell or offer to sell commodities other than produc

Industry without separately stating the price of such co

unless such commodities are incorporated as an integral 

complete unit.

RULE 11. Caracf8.-No member of the Industry shall 

sale or contract of sale of any product, under any descript

does not fully and accurately describe such product in 

tomarily used in the Industry.

RULE 12. &eriice.-No member of the Industry shall fo

pose of infltiencing a sale, render to any prospective or a

chaser of any product any unusual service, except when f

for such service shall be made.'

RULE 13. Secret Rebates.-No member of the Indu

secretly offer or make, any payment or allowance of a reba

comn mission, credit, unearned discomt or excess allowanc

in the form of money or otherwise, nor shall a member 

dustry secretly offer or extend to any customer any spec

or privilege not extended to all customers of the same cla

ptirpose of influencing a sale.

RULE 14. Indit'kdual Labor Cost.-No member of the 

who actually performs duties usually performed by an em

gaged in the manufacture and processing of products of 

try shall fail to charge for such individual labor and sh

in his cost an amount calculated on a basis of at least the 

wage provided for in Article III of the Basic Code.

ARTICLE IX-MONOPOLIES

No provision of this Supplementary Code shall be so ap

permit monopolies or monopolistic practices, or to elimina

or discriminate against small enterprises.

ARTICLE X-MODIFICATIONS

SECTION 1. This Supplementary Code and all the 

thereof are expressly made subject to the right of the Pr

accordance with the provision of sub-section (b) of Se

the Act, from time to time to cancel or modify any order

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

quired tive changes cation and President. 1 SECTION See such and paragraph by by in be Notice the the Act, 2. circumstances, a This Supplementary part Supplementary 2 of of order of Hearing may this approving be such Supplementary modified as Code this modifications he Code. shall Code, Authority on specify the exce Code to basis to be and as on the based of to proapproto Adexpbeu
13

ARnCLE XI-PIUCE INCREASES

Whereas the policy of the Act to increase real purchasing 

will be made more difficult of consummation if prices of goox

services increase as rapidly as wages, it is recognized that 

increases except such as may be required to meet individual 

should be delayed, but when made, such increases should be, 

as possible, limited to actual additional increases in the seller's 

ARCLE XII-EFFEcTvE DATE

This Supplementary Code shall become effective at 12: 01 

A. M. on the tenth day after it is approved by the President.

Approved Code No. 84-Supplement No. 48.

Registry No. 1122-21.

0
UNIVERSITY OF FLORIDA

3 1262 08855 8829