Approved Code No. 84-Supplement No. 40 Registry No. 1114-14 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMEN'TARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

CUT TACK 

WIRE TACK, AND SMALL STAPLE 

MANUFACTURING INDUSTRY 

" 

U. 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON JULY 6, 1934 

WE DO OUR PART 

I 

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I 

UNITED STATES 

I J ( 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193~ 

\ \ 

For sale by the Superintendent of Documents, Washington, D.C. • • • • • • • • Price 5 cents 
'l'his publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and 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 Customhouse. 

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

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

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First Na tional 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, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 84-Supplement No. 40 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

CUT TACK, WIRE TACK, AND SMALL STAPLE 

MANUFACTURING INDUSTRY 

As Approved on July 6, 1934 

ORDER 

APPROVING SUPPLEMENTARY ConE OF FAIR CoMPETITION FOR THE 

CuT TAcK, WIRE TAcK, AND SMALL STAPLE 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 pTovisions 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 Cut Tack, Wire 

Tack, and Small Staple :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, TI-IEREFORE, 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 proyisions of Article VII, Section 1, insofar as they prescribe a waiting period between the filing 

with the Supplementary Code Authority (or such agency as may be 

designated in the Supplementary Code) and the effective date of price 

lists, as originally filed and/ or revised price lists or revised terms and 

72434°--.--829-29----34 (1) 
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conditions of sale, be and they hereby are stayed pending my further 

Order. 

Approval recommended: 

BARTON w. MURRAY, 

HuGHS. JoHNsoN, Adn~inistrator for Indwstrial Recov,ery. 

Division Ad11tinistrator. 

WASHINGTON, D.C., 

J rwly 6, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1V hite House. 

Sm: This is a report on the Supplementary Code of Fair Competition for the Cut Tack, 'Vire Tack, and Small Staple Manufacturing Indu try, a division of the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry, 

the hearing haYing been conducted thereon in vVashington, D.C., 

February 6, 1934, in accordance with the provisions of Title I of 

the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Cut Tack, vVire Tack, and Small Staple :Manufacturing 

Industry being truly representative of this division of the Fabricated 

1\1etal Produ~ts :Manufacturing and Metal Fini hino· and Metal 

Coating Industry, has elected to avail itself of the option of submittin<Y a Supplementary Code of Fair Competition, as provided for 

in Section 1 of Article VI of the Basic Code, for the Fabricated 

]\fetal Products Manufacturing and lVIetal Finishing and Metal 

Coating Industry approved by you on the second day of November, 

1933. 

RESUl\fE 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 five ( 5) members to be elected by the members of the Industry at 

a meeting called by the Temporary Supplementary Code Authority, 

and gives the Admini trator the authority to appoint one additional 

member without Yote and provides machinery for obtaining statistics 

and the administration of the Supplementary Code. 

Article ' provide for an accounting system and methods of 

co t fin ling and j or e, timating. 

Article \I covers the selling below cost provisions but does not 

prohibit sale below cost to meet competition. 

Article VII provides for the filing of price lists and discount 

sheets with the Supplementary Code Authority. 

(3) 
4 

Article VIII sets forth the unfair trade practices of this Supplementary Codes 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 Section 

10 (b) and also provides for the submission of proposed amendments 

to the Supplementary Code. 

Article XI, recognizes that price increases be limited to actual 

additional increases in the seller's cost. 

Article XII states the effective date and duration of this Supplementary Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplementary 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 purpose of cooperative action among 

the trade groups, by inducing and maintaining united action of labor 

and management under adequate governn1ental sanctions and supervision, by eliminating unfair competitive practices, by promoting the 

fullest pos ible 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 increasin~ purchasing power, by reducing and relieving unemployment, by 1m proving 

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) Tl;le 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 Sub ection (b) of Section 10 thereof; and that 

the applicant Institute is an indu trial Institute truly repres ntative 

of the afore aid Industry; and that said In titute im es no inequitable re trictions 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 oppress small enterprise and w1ll not operate to eli - criminate against them. 

(f) Those engaged in other ster s of the economic proce ha v n t 

been deprived of the right to be heard prior to appro al f aid 

Supplementary Code. 

For the e reason , therefore I have approv d this uppl m ntary 

Code; provided, however, that the provisions of Article VII, Sec-
5 

tion 1, insofar as they prescribe a waiting period between the filing 

with the Supplementary Code Authority (or uch agency as may be 

designated in the Supplementary Code) and the effective date of 

price lists, as originally file 1 andj or revised price lists or r evised 

terms and conditions of sale, be and they hereby are stayed pending 

my further Order. 

Respectfully, 

JULY 6, 1934. 

H uGn S. JoHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR CO:MPETITION FOR 

THE CUT TACIC, WIRE TACIC, AND SMALL STAPLE 

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 supplementary Code of Fair Competition for the Cut Tack, 'iVire Tack 

and Small StaJ>le Manufacturing Industry, pursuant to Article VI 

of the Basic Code of F air Competition for the Fabricated Metal 

Products Manufacturing and Metal Finishing and 1\fetal Coating 

Industry approved by the President of the United State on the 

2nd day of November, 1933, and the provisions of this Supplementary 

Code shall be the standards of fair competition of such Indu try and 

shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Cut Tack, Wire Tack and Small Staple 

J\1anufacturing Indu try'', hereafter referred to us the Industry, 

is defined to mean the manufacture for sale of Cut Tacks, 'Vire 

Tacks, Double Pointed Tacks and Small Staples, manufactured 

from ferrous and/ or non-ferrous metals or alloys. 

SECTION 2. The term "employee", as used herein, includes anyone 

engaged in the Industry and all persons however compen ated, 

except a member of this Industry. 

SECTION 3. The tenn "employer", as used herein, includes anyone 

by whom any such employee is ompensated or employed. 

SEC'.riON 4. The term "member of the Industry", as used her in, 

includes, but without limitation, any individual, partner h1p, a ociation, corporation, or other form of enterpri e engag in the 

Indu try either as an employer or on his or its own b half. 

SECTION 5. The terms" President", "Act" und "Almini trat r ", 

as used herein, shall mean respectively the Pr ident of the Unit l 

States Title I of the National Indu trial R co ery Act, and the 

Administrator for Indu trial Recovery. 

SECTION 6. The term " Ba ic o le ", as u l h r in i l fine l to 

mean the Ba ic Code of Fair Competition for th Fabricat l JYI tal 

Products Manufacfuring and M tal Finishing and 1\Ietal ating 

Industry, as approved by the Pr i lent on the 2nd day of NO\ ember, 

1933. 

(6) 
7 

SECTION 7. The term "Supple1nentary Code Authority", as used 

herein, means the agency which is to administer this Supplementary 

Code as hereinafter provided. 

SECTION 8. The term" Institute", as used herein, is defined to mean 

the American Institute of Tack Manufacturers, or its successor. 

SECTION 9. The term "Federation", as used herein, is defined to 

mean the Fabricated Metal Products Federation, or its successor. 

SECTION 10. The term " Confidential Agent" as used herein, is 

defined to mean the impartial agency designated by the Supplementary Code Authority. 

SECTION 11. The term" Supplementary Code Com.mittee" as used 

herein, is defined to mean the committee authorized to present this 

Supplementary Code. 

ARTICLE III-EMPLOYl\fENT 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 subsections (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. 

ARTICLE IV- ORGANIZATION AND Am\IINISTRATION 

SECTION 1. During the period not to exceed sixty ( 60) days following the effective date o-f this Supplementary Code, the Supplementary Code Committee of the Industry who are presenting this 

Supplementary Code shall constitute a Temporary Supplementary 

Code Authority until the Supplementary Code Authority is elected. 

There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of five members tD be elected by the 

members of the Industry, at a meeting called by the Tempo:rary 

Supplementary Code Authority, upon ten days' notice sent by mail 

to all members of the Industry whose names may be ascertained after 

diligent search, who may vote either in person or by proxy. The 

members of the Supplementary Code Authority first elected hall 

serve until the following annual meeting of the Institute, and thereafter, members of the Supplementary Code Authority shall be 

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

to be held at the time and place of each annual meeting of the 

Institute to serve until the following annual meeting. The members 

of the Supplementary Code Authority shall be elected in the following manner : 

(a) Two members, who shall be members of the Institute and 

members of the Industry by a majority vote of all the members of 

the Institute who assent to this Supplementary Code present in 

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

(b) One member, who shall be elected from the non-members of 

the Institute, by a majority vote o:f the non-members of the Institute 

who assent to this Supplementary Code, present in person or by 

proxy, each non-member to h ave one vote. 
8 

In the event that the non-members fail to elect such non-member 

of the Supplementary Code Authority, then the Administrator may 

appoint such non-member from a list of four non-members submitted 

to him by the Supplementary Code Authority as it is then 

constituted. 

(c) Two members, who shall be members of the Institute, by 51% 

vote of the members of the Institute who assent to this Supplementary Code, present in person or by proxy, weighted on a basis of 

one vote for each 100 tons of actual sales of products of the Industry 

made during the preceding calendar year, reported to the Supplementary Code Authority, provided, however no one member may 

cast more than 25 % of the total number of votes cast. 

A Yacancy in the memborship of the Supplementary Code Authority may be filled by majority vote of the remaining members 

of the Supplementary Code Authority, provided, however, that the 

mamber of the Supplementary Code Authority who is chosen to fill 

such vacancy shall be selected from the class of membership that 

was originally represented by the vacating member. 

In additi8n 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 Supplementary Code 

AuthQrity. 

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 membership, and (2) shall 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 is 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 does not in other respects comply with 

the provisions of the Act, may require an appropriate modification 

of the Supplementary Code Authority. 

SEcTION 4. It being found necessary in order to upport the 

administration of this Supplementary Code and to maintain the 

standards of fair con1petition established hereunder an 1 to effectuate the policy of the .Act, the Supplementary Code Authority 

is authorized; 

(a) To incur such rea on able obligations as are nece sary and 

proper for the foregoing purpo e and to meet such obligations out 

of funds which may be rai eel as hereinaft r provided and which 

shall be held in trust for the puq es of the Su pplem ntary ode; 

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

such notice and opportunity to be heard as he may deem nee s ary 

(1) an it mized budget of its estimated expen es for the for going 
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 and maintenance of the Supplementary 

Code Authority, determined as hereinabove provided, and subject to 

rules and regulations pertaining thereto issued by the Administrator. 

Only members of the Industry complying with the Supplementary 

Code shall be entitled to participate in the selection of mBmbers of 

the Supplementary Code Authority or to receive the benefits of any 

of its voluntary activities or to make use of any emblem or insignia 

of the National Recovery Ad1ninistration. 

The Supplementary Code Authority shall neither incur nor pay 

any obligations in excess of the amount thereof as estimated in its 

approved budget, except upon approval of the Administrator first 

obtained; and no subsequent budget shall contain any deficiency item 

for expenditures in excess of prior budget estimates except those 

which the Administrawr shall have so approved. SECTION 5. Nothing contained in this Supplementary Code shall 

constitute the memoors of the Supplem_entary 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 membBr, officer, agent or Bmployee 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 w act under 

this Supplementary Code, except for his own willful malfeasance 

or non-feasance. SECTION 6. The Supplementary Code Authority shall also from 

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

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

under terms of said Basic Code. SECTION 7. The Supplen'lentary 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. 

'Vithout lin'litation to the foregoing or any other powers or duties 

pro'i ided for in this Supplementary Code, this Supplementary Code 

Authority shall have the following pecific duties: 

(a) To adopt By-Laws and Rule and Regulations for its procedure and for the admini tration of the Supplementary Code. 

(b) To obtain from the members of the Industry through its Confidential Agent, such information and reports a required for the 

administration of this Supplementary Code. In addition to information required to be submitted to the Supplementary Code Authority 

the 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, 
10 

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 obligation to furnish reports to any 

Government agent. No individual report shall be disclosed to any 

other member of the Industry or any other party xcept to such other 

Governmental agency as may be directed by the Administrator. 

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

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

nothing herein shall relieve the Supplementary Code Authority of its 

duties or responsibilities under this Supplementary Code and that 

such trade associations and agencies shall at all times be subject to 

and comply with the provisions hereof. 

(d) 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 the In 1ustry. 

(e) To appoint a Trade Practice Committee which shall meet with 

the trade practice committees appointed under such other codes as 

may be related to the Industry for the purpose of formulating fair 

trade practices to govern the relationships between employers under 

this Supplementary Code and under such others to the end that such 

fair trade practices may be proposed to the Administrator as amendments to this Supplementary Code and such other codes. 

(f) To recommend to the Administrator any action or measures 

deemed advisable including further fair trade practice provisions to 

govern members of the Industry in their relations with each other or 

with other industries; measures for industrial planning and stabilization of employment; including modifications of this Supplementary 

Code which shall become effective as part hereof upon approval by 

the Administrator after such notice and hearing as he may specify. 

SECTION 8. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof, may be unfair or unjust or contrary to public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action. Further action by such 

Supplementary Code Authority or agency regardinO' the matter 

complained of, may be taken if approved by the Admini trator but 

shall not be taken if disapproved by the Admini trator within 

thirty (30) days of notice to him of intention to proceed with such 

action. 

SECTION 9. Pursuant to the provisions of the Act, the Supplementary Code Authority shall have the power to inve tio·ate all complaints filed with it by one member of the Industry against another 

member of the Industry. 

SEcTION 10. Every employer shall provide for the safety and 

health of employees during the hours and at the places of their employment. Standards for safety and health shall be ubmitted by 

the Supplementary Code Anthority to the Admini trator within three 

months after the effective date of the Supplementary Code. 

AnTI LE V-AccouNTING AND OSTING 

SECTION 1. \Vith respect to that portion of his pro luct which is 

within the Industry, every member of the Indu try shall u e an 
11 

accounting system for determining his allowable cost which conforms 

to the principles of, and is at least as detailed and complete as, the 

uniform method of accounting, and the uniform method of costing, 

to be formulated or approved by the Supplementary Code Authority 

and the Admini trator with such variations therefrom as may be 

required by the individual conditions affecting any member of th~ 

Industry or group of employers, and as may be approved by the 

Administrator after consultation with the Supplementary Code 

Authority. 

SECTION 2. When the Supplementary Code Authority determines 

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

is destructive price-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 

Adn1inistrator may r equire. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the 

period of the einer&_ency, it shall be an unfair trade practice for 

any member of the lndustry to sell or offer to sell any products o:f 

the Industry for which the lowest reasonable cost has been determined at such prices or upon such tenns 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 Supplementary 

Code Authority, upon its own initiative or upon the request of any 

interested party, shall cause the determination to be reviewed. 

ARTICLE VI-SELLING BELOW CosT 

No member of this Industry shall sell or exchange any of the 

products of tllis Industry, at a price, or upon terms and conditions, 

which will result in the purchaser paying for the goods received, 

less than the allowable cost thereof to the seller, determined in 

accordance with a uniform method of costing above described in 

Article V; provided, however, that dropped lines, or seconds, or 

inventories which must be converted into cash to meet emergency 

needs may be disposed of by any member of this Industry, at any 

price and on any terms and conditions, but only if such member 

of this Industry, not less than two weeks before such disposal, has 

filed with the Supplementary Code Authority or its Confidential 

Agent, a statement in writing, setting forth the fact of, and reasons 

for, such proposed disposal, and provided further, that any member of this Industry may sell below his costs in order to meet competitive prices wllich do not violate this Supplementary Code, and 

which are 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, manufactured outside the United States, provided that he has first so reported to the Supplementary Code Authority and in such report 

has cited the competition which caused him to take such action. 

ARTICLE VII-PmcE Lr TS 

SECTION 1. If the Supplementary Code Authority determines that 

in any branch of the Industry it has been the generally r ecognized 
12 

practice to sell sl?ecific products on the basis of net price li~ts, and;or 

price lists and discount sheets, and/or a schedule of net differentials 

and base prices, each member of the Industry shall within ten (10) 

days after the. effective date of this Supplementary Code file with 

the Supplementary Code Authority a net price list, andf?r price 

lists and discount sheets, andjor a schedule of net differentials and 

base prices, as the case may be, individually prepared by him, and in 

such form and for such products as the Supplementary Code 

Authority may prescribe, showing his current prices, or prices and 

discounts, and terms of sale and payment, and the Supplementary 

Code Authority shall immediately send copies thereof to all manufacturers of such specified product whose names may be ascertained 

after a diligent search. Such prices shall be available to all interested parties at the offic~ of the Confidential Agent. 

Revised price lists andjor discount sheets and/ or schedule of 

net differentials and base prices, andjor all other conditions of sale, 

may be filed from time to time thereafter with the Supplementary 

Code Authority by any manufacturer of such product to become 

effective ten (10) business days after actual receipt by the Supplementary Code Authority through its Confidential Agent. Copies 

of such revised price lists andjor schedule of net differentials and 

base prices, andj or all other conditions of sale, with notice of effective date specified, shall be immediately sent to all manufacturers 

of such products whose names may be ascertained after a diligent 

search, and shall be available to all interested parties at the office of 

the Confidential Agent.1 

SECTION 2. If and when the Supple1nentary 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, andjor schedule of net differentials and base prices, 

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 sub- division of the Industry where the use of price lists, with or without discount sheets, andjor schedule of net differentials and base 

prices, and other fixed conditions of sale, is well recognized, and 

that where the use of price lists, with or without discount sheets, 

and/ or schedule of net differentials and base prices, with other fixed 

conditions of sale should be put into effect in such branch or subdivision, then each manufacturer of the product or products of such 

branch or subdivision shall, within twenty (20) days after notice of 

such determination, file with the Supplementary Code Authority net 

price lists or price lists and discount sheets, or schedule of net differentials and base prices, containing all other fixed conditions of sale, 

and such price lists and/ or discount sheets, andj or schedules of net 

differentials and base prices, and/ or other fixed conditions of sale may 

be thereafter revised in the manner. herein above provided; provided, 

however, that the Supplementary Code Authority shall make no 

determination to place any product of the Indu try (not now on a 

price list basis) on a price list basis, or (not now on a ba is of net 

differentials and base price) on a basis of net differentials and base 

1 See paragraph 2 of order approving tbis Code. 
13 

price, as provided in this Section 2 of Article VII unless two-thirds 

of the members who are at that time. engaged in manufacturing such 

product, shall affirmatively consent that such determination be made. 

SECTION 3. To the extent permitted by the Act and subject to 

such rules and regulations as the Administrator may prescribe, any 

or all information furnished to the Supplementary Code Authority 

by any member of this Industry pursuant to the provisions of this 

Supplementary Code shall be subJect to verification by an impartial 

agency agreed upon by the Suppl.ementary Code Authority, and the 

member of the Industry in question, and, failing such agreement 

such Impartial Agency shall be selected by the Administrator, which 

Impartial Agency may check so much of the pertinent books, accounts and records of such members of the Industry as may be required to verify the accuracy of the information so furnishoo. 

SECTION 4. Each member of the Industry shall furnish the Supplementary Code Authority for distribution with such number of 

copies of his price lists and/ or discount ~heets, andjor schedule of 

net ,differentials and base prices, as the Supplementar7, Code Authority may prescribe. Such price lists shall be available to all 

interested parties at the office of the Confidential Agent. 

SECTION 5. 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 more favorable to the purchaser than those 

provided in his own current net p.rice lists, or price lists and discount sheets, or schedule of net differentials and base prices, except in accordance with the provisions set forth in Article VI. 

ARTICLE VIII-UNFAIR ThADE PRAcTrCES 

In addition to the unfair trade practices covered by Article V o:f 

the Basic Code, except Section A, and for all purposes of this Supplementary Code, the following described acts shall constitute unfair 

practices. Any member of the Industry who shall directly1 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. 

RULE 1. Making or giving to any purchaser of ~ny product any 

guarantee or protection in any form against decline in the invoice 

price of such product after date of shipment thereof. 

RULE 2. Combination Sales. For the purpose of influencing a 

sale no member of the Industry shall sell or offer to sell commodities 

other than products of this Industry at a price below the. invoice 

price plus all incidental costs of such products. If and when the 

products of this Industry are sold in combination with products o:f 

other indu tries, the invoice, must clearly show the unit price o:f all 

articles listed. 

RuLE 3. The splitting of commissions or other compensation received by an employee or agent of the eller with the buyer. 

RULE 4. Attempting to induce the breach of a contract between 

a competitor and his customer, or source of supply, or interfering 

with, ~r obstructing the performance of ~uch contractual duties 

or services. 

RULE 5. Standardization of Products. The Supplementary Code 

Authority hall make studies for the establishment of classification, 
UN IVERSITY OF FLORIDA 

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14 3 1262 08856 0775 

dimensional standards and count per pound for the products of the 

Industry, in cooperation with some Federal Government agency, 

preferably the Bureau of Standards of the United States Department 

of Commerce, with the view to their recommendation for adoption 

by the Industry and such standards when approved by a m.ajority 

vote of the members of the Industry shall become the standards of 

this Industry, subject to the approval of the Administrator; and 

thereafter all members of the Industry shall follow such standards. 

Failure to follow the standards so established and approved will 

be an unfair method of competition and a violation of this Supplementary Code. Provided, however, that exemptions from such 

standards may be granted by the Administrator after consultation 

with the Supplementary Code Authority. 

ARTICLE IX-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. 

ARTICLE X-MODIFICATIONS 

SECTION 1. As provided in sub-section (b) of Section 10 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 

said Act. 

SECTION 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 and be a part of this Supplementary Code 

on approval by the Administrator. 

ARTICLE XI- 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, and when made, such increases should, so far as 

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

ARTICLE XII-EFFECTTVE 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 shall continue in effect until June 18 1935, or the 

earliest date prior thereto on which the President shall, hy proclamation, or the Congress shall, by joint resolution declare that the emergency recognized by Title I of the National Industrial Recovery Act 

has ended. 

Approved Code No. 84-Supplement No. 40. 

Registry No. 1114-14. 

0