Approved Code No. 334 Registry No. 1331-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

I { \ 

BEVERAGE DISPENSING 

EQUIPMENT INDUSTRY 

AS APPROVED ON MARCH 16, 1934 

WE DO OUR PARt 

UN\'J. oP· fl L\1. · 

u.i. Olp()IITOIW 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON 1 19U 

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Approved Code No. 334 

CODE OF FAIR COMPETITION 

r FOR THE 

BEVERAGE DISPENSING EQUIPMENT INDUSTRY 

As Approved on .March 16, 1934 

ORDER 

APPROVING CoDE OF FAIR CoMPETITION FOR THE BEVERAGE DISPENSING 

EQUIPMENT INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of the Code of 

Fair Competition for the Beverage Dispensing Equipment Industry, 

and hearings having been duly held thereon and the annexed report 

on said 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 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 Code 

of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VIII, Section 2 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 they are hereby stayed pending my further Order: either within a period of sixty days from the effective 

date of this Code or after the completion of a study of open price 

associations now being conducted by theN ational Recovery Administration; and further provided, that Section 6 of Article VIII 

shall be stricken from the Code. 

HuGH S. JoHNSoN, 

Ad1ninistrator for Industrial R ecovery. 

Approval recommended: 

w. A. HARRIMAN' 

Division Administrat01". 

wASHINGTON, D.C., 

March 16, 1931,.. 

46823°----425-85--.--34 (59) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Code of Fair Competition for the 

Beverage Dispensing Equipment Industry in the United States, as 

revised after the hearing conducted in Washington on November 8 

1933 in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS OF THE CODE AS TO HOURS, WAGES AND GENERAL LABOR 

PROVISIONS 

This Code provides that no employee shall be permitted to work in 

excess of forty ( 40) hours in any week, except as follows : 

(a) Persons employed in a managerial or executive capacity who 

earn not less than thirty-five dollars ($35.00) per week and traveling 

salesmen, and 

(b) Employees engaged in emergency maintenance and emergency 

repair work, and 

(c) Employees engaged as firemen and watchmen in manufacturing 

operations may be permitted to work not more than forty-eight (48) 

hours in any one week, and 

(d) Employees engaged as "truck drivers, installation, repair and 

erection employees who may be permitted to work not more than 

forty-four (44) hours in any one week, and 

(e) To provide for seasonal peaks employees (other than those 

engaged in clerical or office work and those engaged as firemen and 

watchmen in manufacturing operations and those engaged as truck 

drivers, installation, repair and erection employees) may be permitted to work not in excess of forty-eight (48) hours in any one 

week in not more than six ( 6) weeks of any six ( 6) months' period, 

provided, however, that this tolerance shall not be permitted if seasonal demands can be met by the employment of additional 

employees. 

This Code establishes a minimum rate of pay of forty cents ( 40¢) 

per hour, except that persons employed in clerical or office work shafl 

be paid not less than at the rate of $15.00 per week in any city of 

500,000 population or over, or in the immediate trade area of such 

city; nor less than $14.50 per week in any city of between 250,000 

and 500,000 population or in the immediate trade area of such city; 

nor less than $14.00 per week in any city or town of 250,000 or less 

population. 

This Code also establishes a minimum rate of pay irrespective of 

whether the employee is actually compensated on a time-rate, piecework or other basis. This Code also provides for an equitable 

adjustment of all wages above the minimum and for overtime pay 

(60) 
61 

as at least one and one-hal£ (1lj2 ) times the normal rate of pay. 

Further this Code provides that no employee now employed at a 

rate in excess of the minimum shall be discharged and reemployed 

or replaced by another employee at a lower rate for the purpose of 

evading the provisions o:£ this Code. 

Further no person under sixteen (16) years of age shall be employed in the industry and no person under the age of eighteen (18) 

years shall be employed at operations or occupations, hazardous in 

nature or dangerous to health. 

Further no employer shall reclassify employees or duties of occupations performed or engage in any subterfuge for the purpose o:£ 

defeating the provisions of the Act or of this Code. Provisions are 

incorporated covering Standards for Safety and Health and for the 

Payment of Wages. 

ECONOl\IIC EFFECTS OF THE CODE 

. The members o:£ this industry manufacture and install dispensing 

equipment and accessories for beverages, both alcoholic and nonalcoholic. The raw materials utilized in the industry are numerous, 

consisting, in part, of stainless steel, non-ferrous metals, lumber, 

marble, tile, vitrolite and formica. _The report of the Research and Planning Division indicates that 

the value of the industry's products fell from $24,500,000 in 1929 to 

$9,000,000 in 1932, or a drop of approximately 65 per cent. During 

the first part of 1933, the legalization of beers and wines of low alcoholic content has aided the industry, but the increase in output has 

fallen off appreciably since July. Likewise the number of employees decreased approximately 45% from 1929 to 1932, the total in 1932 

being approximately 1,500. For the first nine months of 1933 the 

number of employees increased to approximately 2,100, but if beer 

drawing equipment is disregarded, approximately the same number 

of workers were employed as in 1932. The adoption of this Code 

should show an immediate increase in the number of employees engaged in the industry, amounting to approximately 500 persons. 

Further, the minimum wage rate provided in the Code should 

raise the rate approximately 12% above the minimum rate paid in 

1929 and should increase the purchasing power for this class of 

labor above the 1929 purchasing power. Corresponding wage adjustments of wages above the minimum should further increase purchasing power. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Code, having found as herein set forth and on the basis of all 

the proceedings in this matter; 

I find that: 

(a) Said 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 
62 

under adequate governmental sanctions and supervision, by elimi· 

nating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by 

avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving 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 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 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 Code is not designed to and will not permit monopolies or 

monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate 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 

Code. 

For these reasons, therefore, I have approved this Code. 

Respectfully, 

MARCH 16, 1934. 

Huon S. JoHNsoN, 

Administrat01'. 
• 

CODE OF FAIR COMPETITION FOR THE BEVERAGE 

DISPENSING EQUIPMENT INDUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery Act, this Code is established as a Code of Fair Competition 

for the Beverage Dispensing Equipment Industry, and its provisions shall be the standard of fair competition for such industry 

and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term" Beverage Dispensing Equipment Industry" 

or " Industry " as used herein is defined to mean and include the 

manufacturing (for sale) and the installing (by the manufacturer) 

of all dispensing equipment for beverages as herein defined, including front counters and back bars, drain boards, soda fountains, and 

carbonators, and parts thereof, which are a part of beverage dispensing e9.uipment and sold in connection or for use therewith, but 

not including barrels, kegs and other containers in which beverages 

are packaged for delivery to the dispenser. 

SECTION 2. The term " beverage " as used herein is defined to 

mean and include alcoholic, spirituous and fermented liquors of all 

types and kinds, beer and other malt and cereal beverages, and 

those non-alcoholic beverages (both still and carbonated) commonly 

known as soft drinks. 

SECTION 3. 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 its own behalf. 

SECTION 4. The term " employee" as used herein includes any 

and all persons engaged in the industry, however compensated, except a member of the industry. 

SECTION 5. The term "Trade" as used herein is defined to mean 

the channels of distribution to the consumer for the products of this 

Industry. 

SEcTION 6. The term "Association" as used herein means "The 

National Beverage Dispensing Equipment Association" . 

SECTION 7. The term "Act" and "Administrator" as used herein 

shall mean respectively Title I of the National Industrial Recovery 

Act, and the Administrator for Industrial Recovery. 

SECTION 8. Population for the purposes of this Code shall be 

determined by reference to the latest Federal Census. 

ARTICLE III-HoURs 

SECTION 1. MaaJimwm Hours.-No employee shall be permitted to 

work more than forty ( 40) hours in any one week (seven (7) day 

(63) 
64 

period) nor more than eight (8) hours in any one day (twenty-four 

(24) hour period) nor more than six (6) days in any one week, 

except as herein otherwise provided. 

SECTION 2. Hours for Clerical and Office E1nployees.-No person 

engaged in clerical or office work shall be permitted to work jn excess of forty ( 40) hours in any one week (seven (7) day period) 

nor more than n1ne (9) hours in any one day (twenty-four (24) 

hour period) nor more than six (6) days in any one week. 

SECTION 3. Exceptions as to H owrs.-To provide for seasonal 

peaks, employees under Section 1 may be permitted to work not in 

excess of forty-eight ( 48) hours in any one week (seven (7) day 

period) in not more than six (6) weeks of any SIX (6) months 

period, provided, however, that this tolerance shall not be permitted if seasonal demands can be met by the employment of additional employees, and further provided, that at least one and onehalf (1:Y2 ) times the normal rate of pay shall be paid for all hours 

worked in excess of the maximum provided herein in Section 1. 

SECTION 4. Employees engaged as firemen and watchmen in manufacturing operations may be permitted to work not more than fortyeight (48) hours in any one week (seven (7) day period). 

SECTION 5. Employees engaged as truck drivers, installation, repair and erection employees, may be permitted to work not more 

than forty-four ( 44) hours in any one week (seven (7) day period), 

provided that at least one and one hal£ (1:Y2 ) times the normal rate 

of pay shall be paid for all hours worked in excess of nine ( 9) hours 

in any twenty-four (24) hour period. 

SECTION 6. Exemptions as to H ours.-The provisions of this Article shall not apply to traveling salesmen, or to persons employed in 

a managerial or executive capacity who earn not less than thirtyfive dollars ($35.00) per week. 

SECTION 7. The provisions of this Article shall not apply to employees engaged in emergency maintenance or emergency repair 

work, provided, however, that in any such emergency work at least 

one and one-half (1:Y2 ) times the normal rate of pay shall be paid for 

all hours worked in excess of the maxima herein provided by this 

Article, and further provided that all cases of emergency work shall 

be reported to the Code Authorit;>::, and further provided that such 

overtime shall not exceed eight ( 8) hours in any one week (seven 

(7) day period) except in cases of emergency maintenance or emergency repair work involving breakdowns or the protection of life 

or property. 

SECTION 8. Employment by Several Employers.-No employer 

shall knowingly permit any employee to work for any time which, 

when totaled with that already performed with another employer 

or employers, exceeds the maxima permitted herein. 

SECTION 9. The provisions of Section 1 of this Article shall apply 

to all employers normally engaged in an executive or managerial 

capa city when engaged in production or mechanical work. 

ARTICLE IV-\V AGES 

SECTION 1. Minimum Wages.-No employee sail be paid in any 

pay period less than at the rate of forty cents ( 40¢) per hour except 

as herein provided. 
65 

. SECTION 2. No clerical or office employee shall be pa1u in any pay 

period less than at the rate of $15.00 per week in any city of 500,000 

population or over, or in the immediate trade area of such city; nor 

less than at the rate of $14.50 per week in any city of between 250,000 

and 500,000 population, or in the immediate trade area of such city; 

nor less than at the rate of $14.00 per week in any city or town of 

250,000 or less population. 

SECTION 3. Piece-W o1·k Cmnpensation., Minim'um 1Yages.-This 

Article establishes a minimum rate of pay which shall apply, irrespective of whether an employee is actually compensated on a time 

rate, piece-work, or other basis. 

SEcTION 4. -wages Above Mini?nun~. -Equitable adjustments in 

pay schedules of all employees shall be made within thirty (30) days 

after the effective date of this Code by any employer who has not 

heretofore made such adjustments under the National Industrial Recovery Act. "\Vi thin sixty ( 60) days after the effective date all such 

adjustments made under the Act. shall be reported to the Code 

Authority and the Administrator. In no case shall rates be reduced. 

SECTION 5. Evasion Through Reem.,ploym,ent.-No employee now 

employed at a rate in excess. of the minimum shall be discharged and 

reemployed or replaced by another employee at a lower rate for the 

purpose of evading the provisions of this Code. 

ARTICLE V- GENERAL LABOR PROVISIONS 

SECTION 1. Child Labor P1 ovision.-No person under sixteen (16) 

years of age shall be employed in the industry. No person under 

eighteen (18) years of age shall be employed at operations or occupations which are hazardous in nature or dangerous to health. The 

Code Authority shall submit to the Administrator within sixty (60) 

days after the effective date of this Code a list of such operations or 

occupations. In any State an employer shall be deemed to have 

complied with this provision as to age if he shall have on file a 

certificate or permit duly issued by the Authority in such State empowered to issue employment or age certificates or permits showing 

that the employee is of the required age. 

SECTION 2. Provisions from the ~-:l.ct .-In compliance sYith Section 

7 (a) of the Act, it is provided: 

(a) That employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

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

of collective bargaining or other mutual aid or protection. 

(b) That no employee and no one seeking employment shall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing, and 

(c) That employers shall comply with the maximnm hours of 

labor, minimum rates of pay, and other conditions of employment 

approved or prescribed by the President. 

SECTION 3. R eclassification of E1npl:;.yees.- N o employer :hall reclassify employees or duties of occupations perform d or engage in 

4G823•----42G- 85----34----2 
66 

an)' subterfuge :for the pnrpo. ·e of defeating the provisions of t?-e 

Act or of thi · Code. 

SECTION 4. Standm·ds lor Saf ty ancl Health.-Every employer 

shall make rea. onable provi ion for the safety and health of his 

employees at the place and during the hours of their employment.. 

Standards for cafety and health for the industry shall be submitted 

by the Code Authority to the Admini trator within six (6) months 

after the effective date of thi Code. 

SECTIO:N 5. State Laws.-N o pro vi ion in this Code shall supersede any State or Federal law which impo es on employers more 

stringei1t requirement a to age of employee , wages, hours of w·ork, 

or a to ·afety, health, sanitary or general working condition·, or insurance, or fire prot€ction, than are imposed by this Code. 

SECTION 6. Posting.-All employers shall post and keep posted 

complete copies of this Code in con picuous places accessible to employees. 

SECTION 7. Payment of W ages.-All employers shall make payment of all wages due in lawful currency or by negotiable check 

therefor, payable on demand. 'Vages shall be paid at the end of 

each weekly period. These wages shall be exempt from any payment 

for pensions, insurance or such benefit other than those voluntarily 

paid by employee.-. Employers or their agent shall not accept, directly or indjrectly, rebates on such wages or o·ive anything of value 

nor extend any fayors to any person for the purpose of influencing 

rates of wages or working conditions of their employees. 

The provisions of this section regarding payment of wages at the 

end of each weekly period shall not apply to person employed in a 

managerial or executive capacity who earn not le than thirty-five 

dollars ($35.00) per week, nor to persons employed in clerical or 

office work. The wages for persons employed in clerical or office 

1\ork shall be paid at the end of pay period not to exceed semimonthly periods. 

SECTION 8. Dismissal.-N o employee shall be dismi~secl by rea on 

of making a complaint or giving evidence with respect to a T"iolation 

of this Code. 

ARTICLE VI-Anl\IIXISTRATION OF THE ConE 

SECTION 1. To provide for the administration of this Code within 

the Industry and cooperation with the Administrator, a Code Authority i · hereby constituted. 

SECTION 2. The Code Authority shall consist of fise ( 5) members 

who shall be elected from members of the Indu try eligible to such 

participation as provided herein by section 7, as follows: 

lVIembor of the indu try shall elect the five ( 5) members of the 

Code Authority1 provided tha.t not more than one (1) such member 

of the Code Authority shall be elected from any one (1) member of 

the industry, and provided further that th non-members of the 

\.sc:oociation shall be entitled to at lea t one member on the Code 

Authority, if any uch non-members are eligible as provided herein 

by Section 7. until eighty percent (80%) of the members of the in- du~try shall have become members of the As ocia.tion. 

SECTION 3. The A, sociation is hereby designated as the agency to 

conduct nn election of the members of the Code Authority to be 
67 

held within fifteen ( 15) days after the effective date of this code, 

and to conduct any other elections of the Code Authority which 

may thereafter be held. 

Members of the first Code Authority shall be elected by a majority 

vote of the members of the industry eligible as provided herein 

by section 7 and present at a meeting called for the purpose, as provided in the preceding paragraph. Subsequent elections of the 

Cq~e A-uthority may be by person, proxy or letter -voting, by members of the industry, eligible as provided herein in Section 7. All 

members of the Code Authority shall be elected to serve for a term 

of one (1) year or until their successors are duly elected and qualified. 

In the event of any vacancy in the membership of the Code 

Authority a special meeting of the members of the industry shall 

be called and an election held within thirty (30) days after such 

notice of such vacancy to fill such vacancy. 

Notice of the time and place of all election meetings shall be 

sent by registered mail to all members of the industry and the 

Administrator at least ten days in advance of such meetings. 

SECTION 4. In addition to membership as above provided, there 

may be three (3) members, without vote, to be appointed by the 

Administrator. 

SECTION 5. The represei1tatives who may be appointed by the 

Administrator together with the Administrator shall be given notice 

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

SECTION 6. Each member of the industry entitled to participate 

in the selection of the members of the Code Authority shall be entitled to one vote for each one hundred thousand dollars ($100,000) 

of shipments of products of the industry reported for the previous 

calendar year, provided that no such member shall have more than 

five ( 5) votes and provided further that each such member shall have 

at least one vote irrespective of the amount of shipments reported for 

the previous calendar year. 

SECTION 7. Members of the industry shall be entitled to participate in and share the benefits of the activities of the Code Authority 

and to participate in the selection of the members thereof by assenting and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its administration. 

Such reasonable share of the expenses of administration shall be 

determined by the Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other £.actors 

as may be deemed equitable. 

SECTION 8. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code 

Authority shall (1) impose no inequitable restrictions on 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 memberships, organization, and activities as the Administrator may deem 

necessary to effectuate the purpose of the Act. 

SECTION 9. In order that the 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 
68 

find that the Coue Authority i not truly representative or does not 

in other re pects comply with the provisions of the Act, may require 

an appropriate modification in the method of selection of the Code 

Authority. 

SECTION 10. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any member of the Code Authority be liable in any manner 

to anyone for any act of any other member, officer, agent or employee of the Code Authority. Nor shall any member of the 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 Code, except for his own wilful misfeasance or 

non-feasance. 

SECTION 11. The Code Authority shall have the following powers 

und duties to the extent permitted by the Act.; provided, that, if 

the Administrator shall determine that any action of the Code 

Authority or any agency thereof 1nay be unfair or unjust or contrary to the public interest, the Administrator may require that 

such action be suspended to afford an opportunity for investigation 

of the merits of such action and further 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 days' notice to him of intention to proceed with 

such action in its original or modified form. 

(a) To execute the provisions of this Code and provide for the 

compliance of the Industry with the provisions of the Act. 

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

and for the administration and enforcement of the Code. 

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

and reports as are required for the administration of the C9de and 

to provide for submi sion by members of such information and 

reports as the Administrator· may deem necessary for the purposes 

reeited in Section 3 (a) of the Act, which information and reports 

shall be submitted by member ~ to uch administrative and/or government agencies as the Administrator may designate; provided 

that nothing in thi. Code shall relieve any member of the industry 

of any exi ting obligation to furni h reports to any gm ernment 

agency. No individual report shall be disclosed to any other member of the industry or any other party except to such governmental 

agencies as may be directed by the Administrator. 

(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 h er ein shall relieve the Code Authority of its duties or respon ibilities under this Code and that such 

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

comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the coordination of the administration of this Code with such other codes. 

if any, as may be r elated to the industry. ' 

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

proportionate payment of the reasonable expenses of maintaining 

the Code Authority and its activities. 
• 

69 

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

of any NRA insignia solely by those members of tne industry who 

have assented to and are complying with this 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 recomn'lend to the 

Administrator measures for industrial plan1ling including stabilization of employment. 

SECTION 12. To require that any information submitted to the 

Code Authority by a n1ember of the industry shall be subject to 

verification, by an examination of the pertinent books and accounts 

and reports of such member by any person (not connected with 

the Industry) designated by the Code Authority, and shall be so 

verified if the Code Authority shall require it. The cost of each 

Buch examination shall be treated as an expense of administering 

the Code; provided, however~ that if upon examination any such 

information shall be shown to have been incorrect in any m~terial 

respect, such cost shall be paid by the member which furnished 

such information. 

SECTION 13. Any interested party shall have the right of complaint 

to the Code Authority and of a prompt hearing and decision thereon 

in respect to any decision, rule, regulation, or other course of action 

of such Code Authority. Such complaint must be filed in writing 

with the Code Authonty within a reasonable period of time after 

said decision, rule, regulation, or course of action is issued or taken. 

The decision of such Code Authority may be appealed by any interested party to the Administrator. 

SECTION 14. Any interested party shall have the right of appeal to 

the Administrator, under such rules and regulations as he may prescribe, in respect to any decision, rule, regulation, or other course of 

action, issued or taken by the Code Authority. 

ARTICLE VII-TRADE PRAcTICE RULEs 

GENERAL DEFINITION 

For all purposes of the Code the acts described in this Article shall 

constitute unfair practices. Any member of the industry who shall 

directly, or indirectly through any officer, employee or agent knowingly use, employ, or permit to be employed any of such unfair 

practices shall be guilty of a violation of the Code. 

RULE 1. lnaccwrate Ref erences to 001npetitors, etc.-No member 

of the industry shall publish advertising which refers inaccurately in 

any material particular to any competitors or their goods, prices, 

values, credit terms, policies or services. 

RULE 2. lnac(JUff'ate Advertisin[J.-No member of the industry shall 

publish advertising (whether prmted, radio, display or of any other 

nature), which is misleading or inaccurate in any material particular, 

nor shall any member in any way misrepresent any goods (including 

but without limitation its use, trade-mark, grade, quality, quantity, 

origin, size, substance, character, nature finish, material, content or 

preparation) or credit terms, values, poficies, services, or the nature 

or form of the business conducted . 
70 

RULE 3. 0 01nmercial Bribery.-N o member of the industry shall 

give, permit to be given, or directly offer to give, anything o:f value 

for the purpose of influencing or rewarding the action of any employee, agent or representative of another in relation to the business 

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

represented party? witho:u~ the knowledge of such employer1 J?rincipal or party. This provision shall not be construed to prohibit free 

and general distribution of articles commonly used for advertising 

except so far as such articles are actually used for commercial 

bribery as hereinabove defined. 

RULE 4. Intm·ference with Another's Oontr(})cts.-No member of 

the industry shall maliciously induce or attempt to induce the breach 

of an existing 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. · 

Rill$ 5. Secret Rebates.-No member of the industry shall offer 

or make any secret or discriminatory payment or allowance of a 

rebate, refund, commission, credit, unearned discount or excess allowance, whether in the form of money or otherwise, nor shall a 

member of the industry offer or extend to any customer secret or 

discriminatory service or privilege for the purpose of influencing a 

sale. 

RULE 6. Giving Prizes, Premiwm or Gifts.-No member of the 

industry shall offer or give prizes, premiums, or gifts in connection 

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

which involves lottery, misrepresentation or fraud. 

RULE 7. Defa?714tion.-N o member of the industry shall defame 

competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by 

other false representations or by the false disparagement of the 

grade or quality of their goods. 

;RULE 8. Threats of Law Suits.-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. Failure to prosecute in due course 

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

RULE 9. Espionage of 001npetitors.-No member of the industry 

shall secure or attempt to secure confidential information concerning 

the business of a competitor by a false or misleading statement or 

representation or by false impersonation of one in authority by 

bribery or any other unfair method. 

RuLE 10. Selling Below Oost.-No member of the industry shall 

sell below his allowable cost. 

The Code Authority shall formulate or cause to be fnrmulated 

standard methods or systems of cost accotmting for use in this 

industry, which methods, or systems shall be adaptable to the cost 

accounting procedure of, and to the business of this industry. Such 

methods or systems shall specify the factors that shall determine 

the allowable cost for each member of the industry pursuant to 

the provisions of this section. Upon approval of such methods or 

systems by the Administrator, the Code Authority shall furnish 

to each member of the industry complete details of such methods 
71 

or systems. Thereafter1 in determining costs (including estimated 

costs) , each member ot the industry shall use a cost accounting 

system which shall be at least as complete and detailed as the cost 

accounting method or system recommended by the Code Authority 

and approved by the Administrator. 

The cost of used equipment or other products of this industry, 

for which a trade-in allowance has been made by a member of the 

industry selling new equipment to replace that taken in exchange, 

shall at least be the amount of the allowance shown on the purchase 

contract for such new equipment. This provision does not apply 

to the sale of obsolescent or damaged products which products may 

be sold at such prices and under such terms and conditions of sale 

as shall be established by the Code Authority, subject to the disapproval of the Administrator. 

RULE 11. No member of the industry shall directly or indirectly, 

discriminate in price between different purchasers of the products 

of this industry; provided, however, that nothing contained in this 

section shall prevent discrimination in price between purchasers of 

the same class on account of difference in the grade, quality, or quantity of the product sold, or that makes only due allowance for difference in the cost of selling or transportation. 

RULE 12. Revised Quotations.-N o member of the industry shall 

submit revised quotations, proposals or bids of a quotation, proposal 

or bid previously filed with a purchaser unless changes in the specifications or requirements of the purchaser justify such a revised quotation, proposal or bid. 

RULE 13. No member of the industry shall sell any article not 

manufactured by the member, but purchased by such member for 

resale in connection with the sale of any products manufactured 

by him at a price lower than the actual cost to the member of such 

complete article. 

RULE 14. No member of the industry shall sell any products of 

the industry f.o.'b. destination unless the amount of the freight (if 

prepaid by a member) is collected from the purchaser in addition 

to and at the time of the first cash payment provided such products 

are sold on extended terms. · Any member of the industry may 

equalize freight with a competing member of the industry. 

RULE 15. No member of the industry shall offer or give service on 

his equipment for a period longer than one year from the date of 

installation of the equipment, unless proper charge has been ·made by 

the member for such excess service. 

RULE 16. No member of the industry shall accept the bonds or 

other securities involved in the financing of the business for which 

the contemplated or actual purchase is made, in part or in whole 

payment for equipment. 

RuLE 17. No member of the industry shall discount contracts cov- ering sales made by his distributors without his making proper 

charge for this serVIce in accordance with the practice of financing 

or discount compa.nies rendering a similar serVIce. 

RULE 18. No member of the industry shall post-date or pre-date 

any contract, invoice, quotation, or receipt, withhold from or insert 

in any contract, invoice, quotation, or receipt any statement which 

makes such contract~ invoice, quotation, or receipt an inaccurate 

stateme~t eit~er ~:Whole or in part or accept or offer to accept anyJ 
72 

such contract with the effect of injuring the business of a competitor 

or violating the provisions of this Code. 

RuLE 19. Othe7' Unfair Trade Practices.-Nothing in this Code 

shall limit the effect of any adjudication by the Courts or holding 

by the Federal Trade Commission on complaint, finding, and order 

that any practice or method is unfair, providing that such adjudication or holding is not inconsistent with any provision of the Act or 

of this Code. 

ARTICLE VIII-PuBLICITY oF PRICEs, TERMS AND CoNDITIONS oF SALE 

SECTION 1. Within thirty (30) days after the effective date of this 

Code each member of the industry shall file and shall maintain on 

file with the Code Authority, or with such agency as the Code Authority may designate, the member's most recently published catalogues and specifications and a full and complete price list with 

maximum discounts applicable thereto for all his standard products. 

Such price list and/ or maximum discounts shall be based f.o.b. 

shipping point and include all terms and conditions of sale to each 

of the member's class of trade, provided, however, that no such price 

list and/or maximum discount applicable thereto shall provide for 

prices less than the member's individual cost as may be determined 

by Rule 10, of Article VII. • 

SECTION 2. In the event of any change hy any member of the 

industry in any price, maximum discount, specification, term or condition of sale, he shall file full and complete copies of every such 

change with the Code Authority, but not exceeding seven (7) days 

in advance of the effective date of any such change.1 

SEcTION 3. Such catalogues, specifications, price lists, discounts 

and terms and conditions of sale together with any changes thereto 

shall be open to inspection at all reasonable times by any interested 

party. 

SECTION 4. No m·ember of the Industry shall sell, pay a rebate, or 

allow a deduction at any time to any person except 1n accordance 

with his prices, maximum discounts, terms and conditions of sale 

then in effect and filed in the manner described herein, except as 

provided in Rule 14 of Article VII. Each member of the Industry 

shall have the right individually to file new prices, maximum discounts, terms, and conditions of sale from time to time, as he·rein 

provided. 

SECTION 5. No member of the industry shall render any service 

other than advice and consultation to any purchaser of any product 

of the Industry in connection with the sale or installation of any 

product unless a schedule of such services shall have been previously 

filed with the Code Authority pursuant to Section 1 hereof, and unless fair compensation for such services shall be paid by such 

purchaser. 

SECTION 6. No member of the industry shall sell any industry 

product contrary to his published prices, discounts, or terms of sale; 

and since a substantial majority of the industry's products are sold 

direct by the manufacturer to the consumer, and since the purpose 

and effect of this Article would be otherwise defeated, it shall be 

1 See paragraph 2 ot order approving this Code. 
73 

an unfair method of competition for any member o:f the industry 

to distribute to the user industry products indirectly through an 

agent, dealer, broker, jobber, or otherwise, contrary to his published 

prices: discunts, or terms of sale.2 

ARTICLE IX-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule or regulation issued under said Act. 

SECTION 2. This Code, except as to provisions required by the Act 

may be modified on the basis of experience or changes in circumstances, such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to 

become effective on approval of the President. 

ARTICLE X-MONOPOLIES, ETC. 

No provision o:f this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

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 individuaJ cost 

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 XII-REGISTRATION OF MEMBERS OF THE INDUSTRY 

Each member of the Industry shall within thirty (30) days of the 

effective date o:f this Code register with the Code Authority. All 

members of the Industry who may engage in the Industry thereafter 

shall likewise register with the Code Authority. 

Every member of the industry shall, within thirty (30) days from 

the effective date hereof, or the date upon which such member becomes subject thereto, whichever is latest, register the full name 

of its enterprise, together with a statement of the number of shop~ 

establishments or separate units thereof and their location, with 

the Code Authority. Every such member of the industry who may 

open for business an additional sho~, establishment or separate unit 

after such registration shall~. within thirty (30) days after such 

opening, register the same in like manner. 

ARTICLE XIII-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 8&4. 

Registry No. 1331-02. 

• Deleted ns per paragraph i of order approving this Code. 

0