UNIVERSITY OF FLORIDA

3 1262 08482 9547

-. "Fplement No. 13 Registry No. 1033-1-02

NATIONAL RECOVERY ADMINISTRATION

SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE

PORCELAIN ENAMELING

MANUFACTURING INDUSTRY

(A Division of the Fabricated Metal Products

Manufacturing and Metal. Finishing

and Metal Coating Industry)

AS APPROVED ON MARCH 31, 1984

MEMBER

R

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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and Domestic Commerce.

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Approved Code No. 84-Supplement No. 13

SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

PORCELAIN ENAMELING MANUFACTURING

INDUSTRY

As Approved on March 31, 1934

ORDER

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION F011 TilE

PORCELAIN ENAMELING 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 Indtitrial

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 Porcelain Enaineling 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 Deceniber

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 or(ler

that said Supplementary Code of Fair Competition be and it is

hereby approved; provided, however, that the provision, of Article

VII, Paragraph (a), insofar as they prescribe a waiting period

between the filing with the Code Authority and the effective date of

revised price lists or revised terms and conditions of sale be and

50361'0482-2-34 (1)
2

they are hereby stayed pending my further Order either within a

period of sixty days froi the effective (late of this Supplementary

Code or after the comipletion of a study of open price associations

now being convicted by the National Recovery Administration.

HUuii S. JoHNsON,

Administrator) for Industrial Recovery.

Approval recommended:

A. 1Z. GLANCY,

Division AdmInistrator.

WASHIMNTON, D.C.,

March 31, 1934.
REPORT TO THE PRESIDENT

The PRESIDENT,

T he V/i ite House.

SIR: This is a report on the Supplementary Code of Fair Competition for the Porcelain Enameling 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., December 20, 1933, in accordance with

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

GENERAL STATEMENT

The Porcelain Enamieling 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.

RESUMN 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 the Executive Committee of the Porcelain Enamel Institute, Incorporated, or its successor and two (2) additional members representing the Industry at large, these two members to be elected by the

members of the Industry at a meeting called by the Temporary

Supplementary Code Committee, 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 an accounting system and methods of cost

finding and/or estimnating.

Article VI provides for determining the lowest reasonable cost of

the products of this Industry.

(3)
4

Artiche VI I jovide- iietho s of setting up and revising price lists.

Article VIII si'ts forth that 21o revisionn relatinig to prices or terms

of selling shall aIlpply to export trade.

Article IX sets forth qIiuotation policies for the Industry.

Article X proviles against the return of products.

Article XI sets forth the unfair trade practices of this Supplementa ry Code which has bei especially designed to offset unfair

comi)et ition ill this divisionl of the Inu istry.

Article XII provides against monopolies and monopolistic

pJractices.

Article XIII contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for the submission of proposed amendments to the Supplemiientary Code.

Article XIV recognizes that price increases be limited to actual

addition increase in the seller's costs.

Article XV states the effective date and d(iration of this Sul))leIentary Code.

Fl NDINOS

The Assistant, Deputy Administrator in his final report to me on

said Supl)lemnentary Code having found as herein set forth and on

the basis of all the proceedings in this matter:

I find 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 commerce 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 indticing and maintaining united action of labor

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

the fullest possible iutilization of the present productive capacity

of indiistries, by avoiding undlue restriction of production (except

as may be temporarily required), by increasing the consumption of

industrial and agricultural prodircts through increasing purchasing

power, by redUcing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry.

(b) Said Industry normally employs not more than 50,000 emnplovees; and is not classified by me as a major industry. (c) The Supplementary Code as approved complies in all respects

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

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

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

applicant group is an industrial group trily 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 nonopolistic practices.
5

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

eliminate or oppress small enterprises and \vill not operate to discriminate against them.

(f) Those enraged 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.

Respectfi illy,

HUGH S. JOHNSON,

Administrator.

MARCH 31, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR

THE- PORCELAIN ENAMELING MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND

METAL FINISHING AND METAL COATING INDUSTRY

ARTICLE I--PuRPOSES

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supplementarv Code of Fair Competition for the Porcelain Enameling

Manufacturing Industry, purstlant 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

standard of fair competition for and shall be binding upon every

member of the Industry.

ARTICLE I--DEFINITINS

The term " Porcelain Enameling Manufacturing Industry ", hereafter referred to as the Industry, is defined to mean the manufacture

for sale of porcelain enameled products or parts and the rendering of

a porcelain enameling service to other manufacturers by the following sub-divisions of the Industry, which are hereby recognized

and defined.

(a) The Jobbing Shop Diesion, consisting of members of the

Industry rendering a porcelain enameling service to other manufacturers whether such production be a major part, subsidiary or

intermediate activity of the employer and includes the fabrication

and/or porcelain enameling of parts for assembly in such products

as stoves and heaters, refrigerators and coolers, display cases, store

fixtures and flat enamel sheets used for store fronts and store wall

coverings. and of other forms of production usually referred to as

jobblling and contract work.

(b) The Sign Diision. consisting of members of the Industry

nmamitfacturing all porcelain enameled signs, including the manufacture of facs for porcelain enameled illuminated signs.

(c) The Table Top Dicision, consisting of members of the Industry mumfactui ring porcelain enameled table tops for kitchen

tables, kitchen cabinets, breakfast room tables, juvenile tables, hospitfl bedside tables, haundr v tray covers, bathtub covers, wash tub

covers, combination sink and drain board covers, roll rim and

straight, flanked drain boards and all other modifications of the above

(6)
7

such products serving the same or similar purposes and manufactured to sell through the distribution channels through which the

above products are marketed.

(d) The Frit Dibision., consisting of memeneris of the Industry

compounding and/or smelting chemicals used in the manufacture of

porcelain enamels and of glazes and allied nate;ials.

(e) And such related branches or sub-divisions as may from time

to tine be included under the provisions of this Code by the Administrator after such notice and hearing as he may prescribe. This

definition specifically excepts such porcelain enameled products as

are subject to codes which have been approved by the President or

Administrator or which may be so approved.

The term " member of the Industry " 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 or on its own behalf.

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 Adininistrator for Industrial Recovery under Title I of said Act.

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 on the second day of November, 1933.

The term " Supplementary Code Authority ", as used herein,

means the agency which is to administer this Supplementary Code

as hereinafter provided.

The term " Executive Committee ", as used herein, is defined to

mean the Executive Committee of the Institute.

The term " Executive Secretary ", as used herein, is defined to

mean the impartial agency appointed by the Supplementary Code

Authority.

The term " Supervisory Committee ", as used herein, is defined

to mean the Supervisory Committee consisting of one or more members of the Industry, approved or appointed by the Supplementary

Code Authority upon nominations by the members of a sub-division.

The term " Institute " as used herein, is defined to mean the Porcelain Enamel Institute, Incorporated or its successor.

The term " sub-division " as used herein, means a division of the

Porcelain Enameling Manufacturimg Industry listed and defined

above.

ARTICLE III-EMPLOYMENT PROvISIoNS

This Industry is a division of the Fabricated Metal Products

Manufacturing and Metal Finishing and Metal Coating Industry

and without limitation the wage, hour and labor provisions in Article

III of its Basic Code as approved by the President November 2, 1933,

including Section 1 of said Article III by which the provisions of

sub-sections (1), (2) and (3) of Section 7 (a) of Title I of the Act

are made conditions of this Code, are specifically incorporated herein

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

this Supplementary Code.
8

ARTICLE I V-ORGANZATION AND ADMINISTRATION

SEePTON 1. During the period not to exceed sixty (60) days following the effective (late. the Executive Committee shall constitute a

Temporary Supplementary Code Authority until the Supplementary

Code Authority is elected.

There shall Iie coistituted within the sixty (60) day period a

Supplementary Code Authority consisting of the Executive Committee and two additional members representing the Industry at

large. These two members are to be elected by the members of the

Industry at a imeetinc called by the members of the temporary

Supplementary Code Authority upon ten days' notice sent by registered mail to all members of the Industry who may vote either in

lerwoiJ or by proxy. The members of the Supplementary Code

Authority first elected shall serve until the next annual meeting of

the I stitute in May. 1934, and thereafter the members of the Supplenentary Code Authority shall be elected at each annual meeting of the Initute to serve until the following annual meeting.

The members of the Supplementary Code Authority shall be

elected in the following manner:

(a ) O(ne member. who shall be a member of the Industry, by fiftyone per cent of all votes cast by all known members of the Industry

present in lerson or bY proxy, each member to have one vote.

(b) One mibembIrI who is not a ieniber of the Institute by fifty-one

per cent of all votes ('ast by all non-members of the Institute present

in person or by )roxy, each meiiber to have one vote.

(c) Nine members coistituitin the Executive Committee of the

Institute on which each sub-division of the Institute shall be entitled

to represeItatiol by two members and who shall be elected in accordance with the provisions of the Constitution and By-Laws of the

list itute.

A vacanmv in the Classes (a ) and (b) members of the Supplementarv Code Authority may be filled by a fifty-one per cent vote of the

remaIIiing members of the Supplementary Code Authority.

A vacancy in the Class (c) members of the Supplementary Code

Authority shall b- filled by a majority vote of the Executive Commit tee of the Institute.

Provided. however. that the right to vote, as set forth above, shall

be subject to the limitations provided in Section 4 of this Article.

In addition thereto the Administrator may appoint a member of

the Supplementary Code Authority who without vote shall serve

without expense to the Industry, unless the Supplementary Code

Authority agrees to pay such expense. The representative who may

be appointed by the Administrator shall be given reasonable notice

of and may sit at all meetings of the Code Authority.

SECTIoN 2. 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 does not in other respects comply with the provisions of the Act, may require an appropriate modification in the

method of selection of the Supplementary Code Authority.
9

SECTION 3. Any 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 4. All members of the Industry areo subject to the jurisdiction of the Supplementary Code: shall be entitled to participate

in and share the benefits of the activities of the Supplementary Code

Authority; shall be entitled to vote in the selection of Class (a) members of the Supplementary Code Authority as provided in Section I

of this Article; and shall pay their reasonable share of the expenses

of the administration of this Supplementary Code, such reasonable

share to be determined by the Supplementary Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other factors as may be deemed equitable by the

Supplementary Code Authority.

SECTION 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 willful misfeasance or non-feasance.

SECTION 6. Sub-division Organization.-For the purpose of administering this Supplementary Code all members of the Industry

shall be classified into the various sub-divisions herein above defined

and subject to the control of the Supplementary Code Authority.

SECTION 7. The Supplementary Code Authority shall have all the

powers and duties which shall be necessary and proper to enable it

to fully administer this Supplementary Code and to effectuate its

purposes.

Without limitation to the foregoing or any other powers or duties

provided for in this Supplementary Code, the Supplementary Code

Authority shall have the following specific duties:

(a) To establish, after due notice and hearing, whether in their

opinion any member of the industry has committed a violation of

any provision of this Supplementary Code. In case any member of

the Industry makes a complaint to the Supplementary Code Authority that any other member of the Industry is not complying with

any particular trade practice rule of this Supplementary Code, the

Supplementary Code Authority may require the Supervisory Committee of the sub-division affected to make a written report of the

facts with its recommendations to the Supplementary Code

Authority.

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

and for the administration of the Supplementary Code.
10

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

reports as the Supplementary Code Authority may require for the

admiinistration of the Supplementary Code and to provide for submission by members of the Industry of such information and reports

as are necessary for the purposes recited in Section 3 (a) of the Act;

provided that nothing in this Code shall relieve any member of the

Industry of any existing obligations to furnish reports to any Government agency. No individual reports shall be disclosed to any other member of the Industry or to anyone other than the Adninistrator or his duly authorized representative except as hereinafter

provided.

(d) To use such trade associations and other agencies as it deems

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

herein, provided that nothing herein shall relieve the Supplementary

Code Authority of its duties or responsibilities under this Code and

that such trade associations and agencies shall at all times b2 subject

to and comply with the provisions hereof.

(e) To make recommendations to the Administrator for the coordination of the administration of this Supplementary Code with

such other codes, if any, as may be related to this Industry.

(f) To secure from members of the Industry an equitable and

proportionate payment of the reasonable expenses of maintaining

the Supplementary Code Authority and its activities, based upon

volume of business and/or such other factors as the Supplementary Code Authority may prescribe, subject to review by the

Administrator.

(g) To cooperate with the Administrator in regulating the use of

any NRA insignia solely by those members of the Industry who have

assented to, and are complying with, this Supplementary Code.

(h) To recommend to the Administrator further fair trade practice

provisions to govern members of the Industry in their relations with

each other or with other industries and to recommend to the Administrator measures for industrial planning, including stabilization of

employment.

(i) To furnish from time to time to the Basic Code Authority

designated in said Basic Code such information as may be required

to be furnished under the terms of the Basic Code.

SECTION 8. Any and all information furnished to the Secretary of

the Supplementary Code Authority or other person or committee

appointed by the Supplementary Code Authority, by a corporate

member of the Industry shall be subject to investigation to the extent

permitted by the Act for the purpose of verification by a disinterested

person or persons mutually agreed upon by the Supplementary Code

Authority and the member of the Industry or by a person or persons

nominated by the Supplementary Code Authority and approved by

the Administrator. The cost of such investigation shall be treated as

an expense of administratinS the Supplmentary Code; provided,

however, that if upon such investigation any such information shall

be shown to have been incorrect in any material respect, such costs

shall bt' aid by the nwmmber of the Industry which furnished such

information, provided the said member has assented to the Supplementary Code, and specifically to the provisions of this Section.
11

SEcTIoN 9. All individual and private information received by the

Executive Secretary, appointee or committee from reports, or as a

result of investigation shall be held in strict confidence and not disclosed to any competitor or other persons outside the Secretary's office, without the permission of the member of the Industry involved.

Provided, however, that such information may be disclosed to any

authorized governnental agency.

Provided, further, that when necessary in the hearing of a complaint of a violation of this Supplementary Code, information resulting from an investigation pertinent to the particular complaint may

be disclosed to the Supplementary Code Authority or its appointee.

Provided, further, that in the event a complaint cannot be adjusted

by the Executive Secretary of the Supplementary Code Authority,

any confidential information required of any member of the Frit

Division, upon request shall be referred to a committee composed of

from one to three disinterested experts for decision and recoimendation to the Administrator. The names of five experts satisfactory to

the members of the Frit Division are to be submitted to the Administrator, from whom he will select from one to three experts to consider the complaint. Any expense of experts shall be paid by the

member of the industry so requesting the use of said experts.

Provided, further, that information pertaining to the reporting of

prices, terms and conditions may be disclosed to effectuate the purposes of this Supplementary Code.

SECTION 10. If the Administrator shall determine that any action

of a Code Authority or agency thereof may be unfair or unjust. or

contrary to the public interest, the Administrator may require that

such action be suspended to afford ain opportunity for investigation

of the merits of such action and for the consideration by such Code

Authority or agency pending final action which shall not be effective

unless the Administrator approves or unless he shall fail to disapprove after thirty (30) days' notice to him of intention to proceed

with such action in the original or niodified form.

ARTICLE V-ACCOUNTING AND COSTING

The Supplementary Code Authority shall cause to be formulated

for each sub-division of the Industry an accounting system and

methods of cost finding and/or estimating capable of use by all

members of each sub-division of the Industry. After such system

and methods have been formulated and approved by the Administrator, full details concerning them shall be made available to all

members of each sub-division of the Industry. Thereafter all members shall determine and/or estimate costs in accordance with the

principles of such methods.

ARTICLE VI-SELLING BELOW ALLOWABLE COST

SECTION 1. No member of the Industry shall offer for sale, sell, or

exchange any product of the Industry manufactured by him, at a

price, or upon terms and conditions, which will result in the pur- chaser paying for the goods received less than the allowable cost

thereof to the seller, determined in accordance with a uniform
12

method of estiimatiiig and costing above described; and provided

further, any member of the Industry may sell below his costs in order

that he itay meet competitive prices filed in accordance with the

provisions of Article VII of this Supplementary Code, or to meet

competition from products of equivalent design, character, quality,

or specifications. imanufactured outside the United States.

SECTION 2. Whien the Supplementary Code Authority determines

that an emergency exists in this Industry and that the cause thereof

is destructive )rice-cutting such as to render ineffective or seriously

endanger the maintenance of the provisions of this Supplementary

Code, the Supplementary Code Authority may cause to be determined the lowest reasonable cost of the products of this industry,

such determination to be subject to such notice and hearing as the

Administrator may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the

period of the emergency, it shall be an unfair trade practice for any

member of the industry to sell or offer to sell any products of the

industry for which the lowest reasonable cost has been determined

at such prices or upon terms or conditions of sale that the buyer will

pay less therefor than the lowest reasonable cost of such products.

When it appears that conditions have changed, the Code Authority, upon its own initiative or upon the request of any interested

party, shall cause the determination to be reviewed.

SECTION 3. Dropped lines, or seconds, or inventories which must

be converted into cash to meet emergency needs may be disposed of

by any member of the Industry, at any price and on any terms and

conditions, but only if such member of the Industry, not less than

ten (10) days before such disposal, has filed with the Supplementary

Code Authority, a statement in writing setting forth the fact of,

and reasons for, such proposed disposal.

ARTICLE VII-PRICE LISTS

(a) If and when the Supplementary Code Authority determines

that in any branch or subdivision of the Industry it has been the

generally recognized practice to sell a specified product on the basis

of printed net price lists, or price lists with discount sheets, and

fixed terms of sale and payment, each manufacturer of such product

shall, within ten (10) (lays after notice of such determination, publish

and file with the Supplementary 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 terns of sale and payment, and the Supplementary Code Authority shall immediately send copies thereof to all known members of

the industry who manufacture such specified products. Such piice

lists shall be available to all interested buyers at the office of the

Executive Secretary.

Revised price lists and/or discount sheets and/or all other conditions of sale may be published and filed from time to time thereafter

with the Supplementary Code Authority by any member of the

Industry who nmauifactures such product, to become effective five

(5) days after receipt thereof by the Supplementary Code Authority.

Copies of such revised price lists and or discount sheets and/or all

other conditions of sale with notice of the effective (late specified,
13

shall be immediately sent to all known members of the Industry who

manufacture such product, who are cooperating in this Supplementfary Code, and shall be available to all interested buyers at the offie

of the Executive Secretary, and any member of this Industry mnwy

file if he so desires, to become effective upon the date when the revised price list and/or discount sheet and/or all other conditions of

sale first filed shall go into effect, revisions of his price lists, a(l/or

discount sheets and/or all other conditions of sale, establishing prices

or prices and discounts not lower or conditions of sale not more

favorable than those established in the revised price lists and 'or

discount sheets and/or all other conditions of sale first filed.-

(b) Subject to the approval of the Administrator, if and when

the Supplementary Code Authority shall determine that in any

branch or subdivision of the Industry, not now selling its product

on the basis of price lists, with or without discount sheets, with

fixed terms of sale and payment, the distribution or marketing

conditions in said branch or subdivision are the same as, or similar

to, the distribution and marketing conditions in a branch or subdivision of the Industry where the use of price lists, with or without

discount sheets and other fixed conditions of sale, is well recognized,

and that where the use of price lists, with or without disconiiit

sheets, with other fixed conditions of sale should be put into effect

in such branch or subdivision, then each member of the Industry manufacturing the product or products of such branch or subdivision shall within twenty (20) (lays after notice of such deterlilination, and administrative approval publish and file with the

Supplementary Code Authority net price lists or price lists and

discount sheets, containing all other fixed conditions of sale, and such

price lists and/or discount sheets and/or other fixed conditions of

sale, may be thereafter revised in the manner hereinabove provided;

provided, however, that the Supplementary Code Authority shall

make no determination to place any product of the industry (not

now on a price list basis) on a price list basis as provided in this

paragraph (b) of Article VII, unless the members of the sub-division affected shall by two-thirds affirmatively vote consent that such

determination be nade.

(c) No member of the Industry shall sell, directly or indirectly,

by any means whatsoever, any product of the Industry covered by

provisions of this Article VII at a price or at discounts, or on other

conditions of sale different from those provided in his own current

net price lists, or price lists and discount sheets. Provided, however,

that no member of the Industry shall be required to file with the

Supplementary Code Authority prices at which products are sold

to his own employees not for resale.

(d) Net price lists or price lists and discount sheets of all new

products or additions to the line shall become effective ininediately

upon same being first offered for sale to any classification of trade

and shall be filed within five days thereafter.

(e) No member of the Industry shall sell any modification of

standard products at a price other than the published schedule

on standard products of equal design, rating and/or purpose except

'See paragraph 2 of order approving this Code.
14

by filing price lists and discount sheets on such products as

hereinabove provided.

ARTICLE VIII-EXPORT TRADE

SECTION. 1. No provision of this Code relating to prices or terms

of selling, shipping or marketing, shall apply to export trade or

sales or shipments for export trade.

SECTION 2. Subject to the approval of the Supplementary Code

Authority, the exceptions established by this section shall apply also

to sales or shipments of materials actually used in manufacture for

export trade.

SECTION 3. Unless and to the extent that the Supplementary Code

Authority with the approval of the Administrator shall otherwise

determine, the sale of any product by any member of the Industry

for direct shipment to the Philippines, Hawaii or Porto Rico or

other insular possessions of the United States of America shall not

be deemed export trade.

ARTICLE IX-QUTATION POLICIES

SECTION 1. Every quotation shall show an itemized list of the unit

prices of the individual items required on the specification or request

for quotation. The total sum of the quotation shall not be less than

the sum total of the individual items comprising the quotation.

When a product consists of two or more parts which themselves are

shown as individual units in the published list prices of the members

of the Industry, the unit price of the combined product shall not be

less than the sum of the unit prices of the articles which comprise it.

SECTION 2. All quotations shall include a definite limit time for

acceptance, but in no case shall quotations be for a period longer

than 30 days from date of quotation, except in building construction

projects not to exceed 60 days.

ARTICLE X-RETURN OF PRODUCTS

No product of this Industry shall be accepted for credit or exchange at a financial loss to the member of the Industry where the

member has performed his part of the agreement of sale.

ARTICLE XI-UNFAIR TRADE PRACTICES

In addition to the unfair trade practices covered in Article V of

the Basic Cbde (excepting Section A), which are made a part hereof

the same as thou-h repeated and set forth at length, and for all

purposes of this 4uipplementary Code, the following described acts

shall constitute unfair practices. Any member of the Industry who

shall directly or indirectly, through any officer, employee, agent or

representative, use or employ any of such unfair practices shall be

guilty of a violation of this Supplementary Code.

(a) Cwmbination sales.-No member of this Industry shall sell or

offer to sell comniodities other than products of this Industry for

the purpose of influencing a sale, at prices below the invoice price plus
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all incidental costs of such products. If and when the products of

this Industry are sold in combination with products of other Industries, the invoice must clearly show the unit price for all articles

listed.

(b) Contracts.-No member of the Industry shall make any sale or

contract of sale of any product under any description which does

not fully describe such product in terms customarily used in the

Industry.

(c) Selling on consigninent.-No member of the Industry shall

ship goods on consignment except under circumstances to be defined

by the Supplementary Code Authority, and approved by the Administrator, where peculiar circumstances of the Industry require

the practice.

(d) Substitution of material.-No employer shall use or substitute material or make delivery of products on an order or contract

which does not conform to samples submitted or representations

made prior to securing the order and/or is siiperior or inferior in

quality to that specified in such order or contract, without making

the adjustment in the quoted price and clearly indicating the nature

of the substitution.

(e) Splitting coimnission.s.-No member of the Industry shall continue to employ any salesman or agent compensated in whole or in

part on a commission or bonus basis who shall pay or allow to any

purchaser any part of the commission or bonus earned by him in

connection with the sale of any product coming within the scope

of this Supplementary Code, or who shall violate or cooperate in the

violation of any provisions of this Supplementary Code applicable

to members of such Industry.

(f) Espionage of competitois.-No member of the Industry shall

attempt to secure confidential information concerning the business of

a competitor by a false or misleading statement or representation, by

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

other unfair method.

(g) Threats of law svi.-No member of the Industry shall publish or circulate unjustified or unwarranted threats of legal proceedings which tend to or have the effect of harassing competitors or

intimidating their customers. Faihire to prosecute in due course

shall be evidence that any such threat is unwarranted or unjustified.

(h) Interference with other contracts.-No member of the Industry shall attempt to induce the breach of an existing written contract between a competitor and his employee or customer or source

of supply; nor shall any such member interfere with or obstruct the

performance of such contractual duties or services.

(i) No member of this Industry shall offer for sale or sell any

products of this Industry classified as seconds unless such products

are conspicuously marked or branded as seconds.

ARTICLE XII-MONOPOLIES

No provision of this Supplementary Code shall be so applied as

to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises.
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ARTICLE XIII-MODIFICATIONS

SECTION 1. This Supplementary Code and all the provisions thereof

are expressly miade subject to the right of the President, in accordance with provisions of subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regrulation issued under said Act.

SEcTIOx 2. This Supplementary Code, except as to provisions required by the Act, may be modified or amended on the basis of

experience or changes in circumstances, such modifications or amendments to be based upon application by the Supplementary Code

Authority or other representative group within the Industry to the

Administrator and such Notice and Hearing as he shall specify and

to become effective as and be a part of this Supplementary Code on

approval by the President, and/or the Administrator.

ARTICLE XIV-PRICE INCREASES

Whereas the policy of the Act to increase real purchasing power

will be made more difficult of consummation if prices of goods and

services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs

should be delayed, but when made, such increases should, so far as

possible, be limited to actual additional increases in the seller's costs.

ARTICLE XV-EFFECTIVE DATE AND DURATION

This Supplementary Code shall become effective at 12: 01 o'clock

A.M., Eastern Standard Time, on the tenth day after it is approved

by the President and/or the Administrator and shall continue in

effect until June 16, 1935, or the earliest date prior thereto on which

the President shall, by proclamation, or the Congress shall, by joint

resolution declare that the emergency recognized by Section 1 of the

National Industrial Recovery Act, has ended.

Approved Code No. 84-Supplement No. 13.

Registry No. 1033-1-02.

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