Approved Code No. 347-Supplernent No. 47 Registry No. 1414- 12 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

MINE CAR MANUFACTURING 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON FEBRUARY 5, 1935 

WE DO OUR PART 

UN\V. oP· F\. L\1. 

WASHINGTON: 1935 

For sale by the Superintendent of Documents. Washiniton. D. C. - - • • • - • • - Price 5 cents 
• 

This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D. C., and by district offices of the Bureau ot 

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 Building. 

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich. : 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building . Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kan as City, 1\Io.: 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. 347- Supplement No. 47 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

MINE CAR MANUFACTURING INDUSTRY 

As Approved on February 5, 1935 

ORDER 

SuPPLEMENTARY CoDE OF F AIR CoMPETITION FOR THE MINE CAR 

MANUFACTURING I N DUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Mine Car Manufacturing 

Industry, a Subdivision of the Machinery and Allied Products Industry, and hearing having been duly held thereon and the annexed report on said Supplemental Code, containing findings with 

respect thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority -vested in it by Executive Orders of the President, including 

Executive Order No. 6859, and otherwise, does hereby incorporate 

by reference said annexed report and does find that said Supplemental Code complies in all respects with the pertinent provisions 

and will promote the policies and purposes of said Title of said 

Act; and does hereby order that said Supplemental Code of Fair 

Competition be and it is hereby approved subject to the following 

conditions: 

( 1) That the provisions of Article VII, Section 2, insofar as 

they prescribe a waiting period between the filing with the Code 

Authority (i. e. actual receipt by the Code Authority) and the effective date of revised price list or revised terms and conditions of sale, 

be stayed and they are hereby stayed pending the further order of 

the National Industrial Recovery Board. 

(2) That the words "on the date specified therein but any revision must be filed with the agent five (5) days in advance of the 

effective date as specified", be deleted from the fourth sentence of 

Section 2 of Article VII and the words "immediately upon receipt 

thereof by said agent" substituted therefor. 

113795°----1573-20----35 (1) 
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(3) That the seventh sentence of Section 2, Article VII, reading: ''Any employer receiving any such list or revision, may thereupon 

file, if he so desires, a revision of his price terms specifying an 

effective date that may be on or after the effective date of such revision first filed,' be deleted. 

NATIONAL INDUSTRIAL RECOVERY BoARo, 

By W. A. HARRIMAN, Administrative Officer. 

Approval recommended: 

BARTON w. MURRAY, 

Division Administrator. 

wASHINGTON, D. c., 

February 5, 1935. 
• 

REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Supplemental Code of Fair Competition for the Mine Car Manufacturing Industry, a Subdivision of 

the Machinery and Allied Products Industry, Public H earing having been conducted thereon in Washington, D. C., September 25, 

1934, in accordance with the provisions of Title I of the National 

Industrial Recovery Act. 

GENERAL STATEMENT 

The Mine Car J\t!anufacturing Subdivision being truly representative of the manufacturers of the products defined in Article II of the 

Supplemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in the second paragraph of Article I of the Code of Fair Competition for the 

lVIachinery and Allied Products I ndustry, approved by you on the 

seventeenth day of March, 1934. 

The ~1ine Car :Manufacturing Subdivision includes the manufacture for sale or lease of non-powered wheeled vehicles not exceeding 

350 cubic feet level full capacity such as are customarily employed 

in coal mining operations for transportation of coal from the point 

of its dislodgment at the face of the operations to the tipple or to 

the place where it is used, processed, stored or committed to other 

transportation facilities; and chilled cast iron mine car wheels; and 

parts and r epair parts for such vehicles, except those manufactured 

under any other approved code. 

Statistical material bearing on this Subdivision was obtained from 

the Code application submitted by the Mine Car Manufacturing 

Industry. This Industry as represented by the Mine Car Manufacturing Employers claims to represent 90 per cent of the Subdivision as defined in Article II, Section 3, of the Supplemental 

Code of Fair Competition for the Mine Car Manufacturing 

Industry. 

Annual sales in 1933, according to the Mine Car ~1anufacturing 

Industry, declined to slightly less than one-third of the 1929 level. 

In 1929 sales were reported as $7,668,520, and in 1933 as $2,529,967. Estimates showing employment for the entire Subdivision, submitted by the ~1ine Car lVlanufacturing Industry in their Code application, indicated that employment declined from 1,651 in 1929 to 1,323 ·in 1933, or 19.8 per cent. 

RESUl\f:E OF SUPPLEMENTAL OODE 

Article I states the purposes of the Supplemental Code. 

Article II accurately defines specific terms applicable to the subdivision as used in this Supplemental Code. 

(3) 
4 

• 

Article III provides for the adoption of the employment provisions of the National Industrial Recovery Code of the Machinery 

and Allied Products Industry, as approved by you and as from time 

to time amended. 

Article IV provides for: the adoption of Articles II, VI and IX of 

the National Industrial Recovery Code of the Machinery and Allied 

Products Industry, in a.ccordance with the conditions of this Article 

governing their adoption. 

Article V provides for the operation of a Code Authority and 

defines its powers and duties. 

Article VI sets forth methods of procedure wherein bids andjor 

proposals are concerned. 

Article VII provides for price filing and opposes price fixing. 

Article VIII provides for rates of discounts, installments, leasing 

of products of this Subdivision and period of free discount. 

Article IX sets forth unfair trade practices for this Subdivision. 

Article X states that no provision of this Supplemental Code 

concerning pricing and marketing (Articles VI, VII and VIII) shall 

apply to export sales as defined by the term "Export" in this 

Article. 

Article XI provides that this Supplemental Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with Subsection (b) of Section 10 of the Act, 

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

rule or regulation issued under said Title I of the Act. Provision is 

also made that modifications may be submitted by the Code Authority to the National Industrial Recovery Board for approval. 

Article XII states that no provision of this Supplemental Code 

shall be applied so as to permit monopolies or monopolistic practices, 

or to eliminate, oppress, or discriminate against small enterprises. 

Article XI~I states the effective date of this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to the 

National Industrial Recovery Board on said Supplemental Code 

having found as herein set forth and on the basis of all the proceedings in this matter: 

.The National Industrial Recovery Board finds that: 

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

policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of obstructions to the free flow of inter tate 

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 inducino- and maintaining united action of labor 

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

fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 
5 

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

employees; and is not classified by the National Industrial Recovery 

Board as a major industry. 

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

with the pertinent provisions of said Title or 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 individual group truly representative of the 

aforesaid Subdivision; and that said group imposes no inequitable 

restrictions on admission to membership therein. 

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

permit monopolies or monopolistic practices. 

(e) The Supplemental 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 Supplemental Code. 

For these reasons, therefore, the National Industrial Recovery 

Board has approved this Supplemental Code, staying and deleting 

certain provisions related to price filing as stated in the Order. 

For the National Industrial Recovery Board: 

FEBRUARY 5, 1935. 

w. A. HARRIMAN, 

Ad1nilnistrative Officer. 
SUPPLEMENTARY CODE OF FAIR CO~fPETITION FOR 

THE MINE CAR MANUFACTURING INDUSTRY· 

A DIVISION OF THE MACHINERY .AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supplemental Code of Fair Competition for the Mine Car Manufacturing 

Subdivision of the Machinery and Allied Products Industry and, 

together with the Code of Fair Competition of the Machinery and 

Allied Products Industry, shall be the standards of fair competition 

for this Subdivision and shall be binding on every employer therein. 

ARTICLE II-DEFINmoNs 

SECTION 1. "Applicant" means the Mine Car Manufacturing 

Industry. 

SECTION 2. "Industry" means the Machinery and Allied Products 

Industry as defined in its Code of Fair Competition as approved 

by the President, March 17, 1934, and as such definition may from 

time to time be amended. 

SECTION 3. "Subdivision " means this Mine Car lVIanufacturing 

Subdivision of the Machinery and Allied Products Industry as defined and set forth in definition number 50 of Article II of the Code 

of Fair Competition for the Machinery and Allied Products Industry 

as follows: 

"~1ine Car Manufacturinrr Subcli vision" means the manufacture 

for sale or lease of non-powered wheeled vehicles not exceeding 350 

cubic feet level full capacity such as are customarily employed in 

coal mining operations for transportation of coal from the point 

of its dislodgment at the face of operations to the tipple or to the 

place where it is used, processed, stored or committed to other transportation facilities; and chilled cast iron mine car wheels; and parts 

and repair parts for such vehicles except those manufactured under 

any other approved code. 

SEcTION 4. "Code" means the Code of Fair Competition for the 

1\fachinery and Allied Products Industry as approved by the President, !\1arch 17, 1934, and as from time to time amended. 

SECTION 5. "Supplemental Code" means this Supplemental Code 

for the ~fine Car ~1anufacturing Subdivision of the Machinery and 

Allied Products Industry. 

SEcTION 6. "Basic Code Authority" means the Code Authority 

of the Machinery and Allied Products Industry as con titutecl by 

the Code. SECTION 7. "Code Authority" means the Code Authority con. tituted for this Subdivision as provided by the Code and by this 

Supplemental Code. 

(6) 
7 

SEcTION 8. "Affiliated Company" means any corporation .vhieh 

is a member of an affiliated group of which an employer is also a 

member. Such corporation shall be deemed to be an affiliated company of such employer within the meaning of this Code. An affiliated group as used in the foregoing statement means one or more 

corporations conne~ted through stock ownership with a common parent corporation if the stock of each of said corporations (except 

such conunon parent corporation) is substantially wholly owned 

( 90% or more) directly or indirectly by said common parent corporation or by one or more of the other corporations, and shall 

include such corrunon parent corporation. 

SECTION 9. "Person" means a natural person, a corporation, a 

partnership, an association, a trust, a trustee, a trustee in bankruptcy, a receiver, or other entity. 

SECTION 10. "Employer" means any person engaged in this Subdivision either on his own behalf or as an employer of labor. 

SECTION 11. "Employee" means anyone who is employed in the 

Subdivision by such employer, however compensated. 

SEcTION 12. "The Act" means Title I of the National Industrial 

Recovery Act. 

SEcTioN 13. "The President" means the President of the United 

States. 

SECTION 14. "Board" means the National Industrial Recovery 

Board or its successor in office. 

ARTICLE Ill-EMPLOYMENT PROVISIONS 

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

Hours "; Article IV, " Wages " ; and Article V, " General Labor 

Provisions ", are hereby made a part of this Su p:plemental Code, 

with the same effect as if they were written into th1s Supplemental 

Code. 

ARTICLE IV-ADOPTION OF OTHER PRoVISIONs oF CoDE 

The following Articles of the Code, viz : Article II, " Definitions "; 

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

administered as an autonomous Code; and Article IX, "Withdrawal", are hereby adopted and made a part of this Supplemental 

Code, with the same effect as if they were written into this Supplemental Code. 

ARTICLE V-ADl\HNISTRATION 

A Code Authority is hereby constituted to administer and facilitate the enforcement of this Supplemental Code. 

SECTION 1. During a period not to exceed thirty (30) days following the effective date of this Supplemental Code, the Code Corrunittee 

duly elected from and by the representatives of employers of the 

Subdivision, and functioning at the date this Supplemental Code 

is approved, shall be the Temporary Code Authority. The Board, 

in its discretion, may appoint one additional member (without vote 

and without expense to the Subdivision). 
8 

SECTION 2. "\Vithin said thirty (30) days' period, the Temporary 

Code Authority shall, on at least twelve (12) days' notice (from 

date of mailing) by registered mail to all known employers, call 

a meeting of the Subdivision for the adoption of Procedural Rules 

and Regulations, and for the election of a permanent Code Authority which shall consist of seven (7) members elected by and from 

the employers in the Subdivision entitled to vote as provided in 

Section 8, of this Article V, each member to serve for a term of one 

year or until his successor shall have been elected and qualified, or 

the Code shall have been terminated. The Board, in its discretion, 

may appoint one additional member (without vote and without 

expense to the Subdivision). The Permanent Code Authority so 

elected shall immediately supersede the Temporary Code Authority. 

SECTION 3. Action by employers in all Subdivision meetings, 

including the election of permanent Code Authority, adoption of 

Procedural Rules and Regulations and the transaction of other 

business of the Subdivision except additions to or revisions of this 

Supplemental Code and withdrawal from the Basic Code, shall be 

by a majority vote of employers entitled to vote as provided in 

Section 8 of this Article V who are present in person or by proxy 

duly executed and filed with the Code Authority, cast and computed 

concurrently by each of the two following methods: 

1. By one vote of each employer. 

2. By vote of employers weighted on the basis of one vote for 

each $200,000 of the total domestic net sales of the Subdivision 

billed f. o. b. plant by each employer for the preceding three (3) 

calendar years. The votes so determined shall apply throughout 

the then current year. Each employer shall be entitled to at least 

one vote. 

SECTION 4. In order that the Code Authority shall at all times be 

truly representative of the Subdivision, and in other respects comply 

with the provisions of the Act, the Board n1ay prescribe such heari_ngs as it may deem proper; and thereafter if it shall find that the 

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 Code Authority. 

SECTION 5. Any vacancy on the Code Authority due to death, 

resignation, or loss of voting qualifications or because a member 

thereof has ceased to be connected with the Subdivision, shall be 

filled at a meeting of employers called by the Code Authority on 

at least twelve (12) days' (date of mailing) notice sent by registered 

1nail to all employers, and by a vote similar to the vote by which 

the retired member was originally selected. 

SECTION 6. (a) Each employer shall keep accurate and complete 

records of all transactions whenever such records may be required 

nnder any of the provisions of this Supplemental Code, and shall 

furnish accurate reports based upon such records concerning any 

of such activities when required by the Code Authority or the 

Board. If the Code Authority or the Board shall determine that 

~mbstantial doubt exists as to the accuracy of such reports, so much 

of the pertinent books, records and papers of such employer as may 

be required for the verification of such reports may be examined 

by an impartial agency, agreed upon between the Code Authority 
9 

and such employer, or, in the absence of agreement, appointed by 

the Board. In no case shall the facts disclosed by such examination 

be made available in identifiable form to any competitor, whether on 

the Code Authority or otherwise, or be given any other publication, 

except such as may be required for the proper ad1ninistration or 

enforcement of the provisions of this Supplemental Code. 

(b) Such investigation or audit may be made under the Code 

Authority, as above, not only upon receipt of a formal complaint 

of violation, but when the Code Authority in pursuance of the proper 

exercise of its powers believes in good faith, in the absence of a formal complaint, that a prima facie violation of this Supplemental 

Code has occurred. 

SECTION 7. If the Board shall have reason to believe that any 

action of the Basic Code Authority or of any Code Authority or of 

any agency of any of them, may be violative of the provisions 

of this Supplemental Code or unfair, unjust or contrary to public 

policy, the Board, after having notified and conferred with the 

Basic Code Authority or the Code Authority or the authorized 

representative thereof, or after ten (10) days have elapsed from date 

of such notification without response from such Code Authority, 

may require, by notice that such action be suspended for some definite period not exceeding thirty (30) days. Within fifteen (15) 

days from the date of such suspension, the Basic Code Authority 

or the Code Authority shall further consider such action and determine (a) whether or not it will continue with such action, as not 

violative of the Code or of this Supplemental Code, or (b) whether 

it will proceed with some modified action, and notify the Board 

of such determination. If such determination is approved by the 

Board, or is not by it disapproved within fifteen ( 15) days thereafter, such determination shall become effective and such suspension 

be automatically terminated. If the Board shall disapprove such 

determination within fifteen ( 15) days, such action shall be permanently suspended. 

SECTION 8. Any employer shall be entitled to vote at the election 

of the permanent Code Authority and at other meetings of employers 

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

participate in any endeavors of Code Authority in the preparation 

of any amendments or revisions of, or addition or supplements to, 

this Supplemental Code by paying or agreeing to pay, unless duly 

exempted, as and when assessed, his proper pro rata share of the 

reasonable cost of administering this Supplemental Code as determined by Code Authority. The pro rata share shall be computed 

on the basis of the employer's total domestic net sales billed f. o. b. 

plant averaged over the two preceding years and the total domestic 

net sales billed f. o. b. plant of the Subdivision averaged over those 

same two years. 

SECTION 9. Nothing contained in this Supplemental Code shall 

constitute employers or members of the Code Authority as partners 

for any purpose. Nor shall any member of the Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, 

be liable in any manner to anyone for any action of any other member, officer, or employee of the Code Authority or be liable to anyone 

for any action, Qr omission to act, under the Code or this Supple-
10 

mental Code except for his own wilful misfeasance or nonfeasance. 

The Code Authority shall be deemed to have discharged its full duty 

in respect to any violation or alleged violation of the Code or this 

Supplemental Code when it shall have exercised such powers as are 

conferred upon it, and in the event of its inability to procure compliance with the provisions of the Code, or this Supplemental Code, 

shall have certified the facts and made available all pertinent information with respect to such violation or alleged violation to the 

Board or other appropriate Governmental Authority and thereafter 

stood prepared to render all proper assistance to the Board or other 

appropriate Governmental Authority to enable such body to procure enforcement thereof. 

ARTICLE VI-CoNCERNING Brns 

In each case wherein one or more employers shall be invited to submit proposals or bids to manufacture or build and sell or lease any 

mine cars or complete mine car parts, each employer so invited shall 

within forty-eight ( 48) hours after ·receipt by him or it of such invitation notify in writing a confidential and disinterested agent designated by the Code Authority of the receipt of such invitation, the 

name of the customer inviting the proposals or bids, the number and 

kind of mine cars and/or complete mine car parts with respect to 

which the proposals or bids are invited, the date, if any, on or by 

which the proposals or bids are to be submitted to the customer and 

whether or not such employer intends to submit a proposal or bid. 

Each employer submitting a proposal or bid shall: (a) reduce the 

same to writing; (b) state therein, among other things, terms of payment and delivery and the price, including the price of such alternates as shall be required or proposed; (c) coincident with the submission to the customer (but not earlier) of such proposal or bid, 

send by mail or cause to be delivered (whichever shall be the more 

expeditious method of transmittal), a sealed, full, true, and correct 

copy of such proposal or bid to the agency designated by the Code 

Authority for the purpose. The agency designated as aforesaid shall 

on the date on or by which the proposals or bids are to be submitted 

to the customer as stated in the invitation for bids, or in these cases 

for which no closing date has been specified, upon the receipt by it of 

proposals or bids from all the employers who or which shall, as 

aforesaid, have notified it of their intention to submit proposals or 

bids, open the sealed copies which shall have been deposited with said 

agency and send by mail or cause to be delivered (whichever shall 

be the more expeditious method of transmittal) to each employer 

from whom or which it shall have received a copy of a proposal or 

bid in respect to any given mine cars and/or complete mine car parts, 

a copy of every proposal or bid received by it from each other employer in respect to such products; provided, however, that no detailed specifications or drawings shall be delivered or revealed to any 

employer. A bidding employer failing or refusing in any case in 

accordance with the foregoing to submit a written proposal or bid 

and/or deliver a copy thereof to the said designated agency shall be 

guilty of a violation of this Supplemental Code. Nothing contained 

in this article shall preclude any employer submitting more than one 
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proposal or bid pursuant to a:r;1y invitation to bid; provided that all 

such proposals or bids shall conform to the current filed prices of 

the bidding employer; and provided :further, that copies of all proposals or bids shall be submitted, as above provided, to the confidential and disinterested agent who shall immediately notify by 

telegram or telephone all employers who have submitted proposals 

or bids on the same inquiry. Nothing in this Article VI shall supersede any Federal, State, or 1\..funicipal statute or regulation. 

ARTICLE VII-OPEN PRICE FILING 

SECTION 1. It shall be the duty of the Code Authority, after conferring with all the employers of the Subdivision, to adopt a schedule or classified list of component parts of the products of the 

Subdivision. Such schedule or classified list shall be distributed to, 

and become the current schedule or classified list of the products of~ 

the Subdivision. 

(a) Each employer shall cooperate in the compiling and maintenance in a current up-to-date condition of the above lists by furnishing to the Code Authority such information regarding the details 

of all conponent parts of products of the Subdivision manufactured 

by such employer as may be required by the Code Authority for the 

compiling and maintenance of said lists. 

SEcTION 2. Each employer shall file with the confidential and 

disinterested agent designated by the Code Authority, identified 

lists of all of his prices, discounts, rebates, allowances, and all other 

terms or conditions of sale or lease hereinafter in this Article 

referred to as "price terms", which lists shall completely and accurately conform to the individual pricing practices of said employer. 

Such lists shall contain the price terms for all such component parts 

of products of the Subdivision as covered by Section 1 of this Article 

VII, as are sold or offered for sale or lease by said employer. Said 

price terms shall in the first instance be filled within ten (10) days 

after the effective date of this Supplemental Code. Price terms 

and revised price terms shall become effective on the date specified 

therein but any such revision must be filed with the agent five ( 5) 

days in advance of the effective date as specified. Immediately 

upon receipt thereof, said agent shall by telegraph or other equally 

prompt means notify said employer of the time of such receipt. 

Such lists and revisions, together with the effective time thereof, 

shall upon receipt be immediately and simultaneously distributed 

to all employers and to all of their customers who have applied 

therefor and have offered to defray the cost actually incurred by the 

Code Authority in the preparation and distribution thereof and be 

available :for inspection by any of their customers at the office of such 

agent. Any employer receiving any such list or revision, may thereupon file, if he so desires, a revision of his price terms, specifying an 

effe-ctive date that may be on or after the effective date of such revision first filed. Said lists or revisions or any part thereof shall not 

be made available to any person until released to all employers and 

their customers, as aforesaid ; provided, that prices filed in the 

first instance shall not be released until the expiration of the aforesaid ten (10) day period after the effective date of this Supplemental 
12 

Code. The Code Authority shall maintain a permanent file o:f all 

price terms filed as herein provided, and shall not destroy any part 

o:f such records except upon written consent o:f the Board. Upon 

request the Code Authority shall :furnish to the Board or any duly 

designated agent o:f the Board copies o:f any such lists or revisions 

o:f price terms. 

When any employer has filed any revision, such employer shall 

not file a higher price within :forty-eight (48) hours. 

No employer shall sell or lease or offer to sell or lease any products 

o£ the Subdivision :for which price terms have been filed pursuant 

to the provisions o£ this Article, except in accordance with such 

price terms. 

No employer shall enter into any agreement, understanding, combination or conspiracy to fix or maintain price terms, nor cause or 

attempt to cause any employer to change his price terms by the use 

o:f intimidation, coercion, or any other influence inconsistent with 

the maintenance o£ the :free and open market which it is the purpose 

o:f this Article to create.1 

SECTION 3. Nothing in Article VII or Article VIII <1f this Supplemental Code shall be deemed to apply to or affect the sale o:f any 

product by any employer to an affiliated company o:f such employer, 

when such product is :for use and not :for resale. 

ARTICLE VIII-PRICES AND TERMS OF pAYMENT 

SECTION 1. The maxilnum rates o:f discount and maximum periods 

o:f :free credit shall be those hereinafter set :forth. All invoices :for 

products o:f the Subdivision sold by any employer a:fter the effective 

date o:f this Supplemental Code shall be dated not later than the date 

o£ the shipment o:f the products covered thereby. 

SECTION 2. A maximum cash discount o:f 1% may be allowed on 

invoices covering all products :for payment within ten days :from 

the date o:f such invoices, provided, however, that any employer may 

allow such discount o£ 1% :for payment within ten days on the basis 

o:f settlements twice in each month, as :follows: 

(a) On invoices :for products dated :from the 1st to the 15th, 

inclusive, o£ any month such discount may be allowed on payment of 

such invoices on or be:fore the 25th o£ such month; 

(b) On invoices :for products· dated :from the 16th to the end o:f 

any month, such discount may be allowed on payment o£ such 

invoices on or be:fore the lOth o£ the next :following month. 

SECTION 3. Any discount allowed in accordance with the provisions 

o:f this Article shall apply only to the invoiced value o£ the products 

specified therein and not to any part o:f the transportation charges 

on such products. 

SECTION 4. "'\Vhenever any employer elects to sell products o£ the 

Subdivision on the basis o£ installment payments, or by leasing 

arrangement subject to conditions providing for ultimate purchase 

by the customer, or by outright lease, all such agreements between 

employer and customer shall be in writing. For the purpose o£ thjs 

Supplemental Code, leasing o:f the products o£ this Subdivision by 

the manufacturer thereo:f are hereby made a part o£ and subject to 

1 See paragraph 2 (1), (2), and (3) of order approving this Code. 
13 

this Code of Fair Competition. No employer shall use a lease form 

of contract for the purpose of evading the pricing practices established herein nor any other provision of this Code. Title in such 

products so leased or sold shall not pass to customer prior to liquirlation of unpaid balance. 

ARTICLE IX-UNFAIR TRADE PRACTICES 

F or all purposes of this Supplemental Code the acts hereinafter 

described in this Article shall constitute Unfair Practices and the 

use or employing of them· or any p.art of them by an employer shall 

be deemed a violation of this Supplemental Code. 

SECTION 1. Publishing advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccura,te in 

any material particular, or misrepresenting in any way 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, policies, services, 

or the nature or form of the business conducted. 

SECTION 2. Knowingly withholding from or inserting in any quotation or invoice any s·tatement that makes it inaccurate in any 

material particular. 

SECTION 3. Defaming a competitor by falsely imputing to him 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other false representation, or by falsely disparaging the grade or quality of his goods. 

SECTION 4. Publishing or circulating unjustified or unwarranted 

threats of legal · proceedings, which tend to, or have the effect of, harassing competitors or intimidating their customers. 

SECTION 5. Secretly offering or making any payment or allowance 

of a rebate, a refund, commission, credit, unearned discount or excess 

allowance, whether in the form of money or otherwise or secretly 

offering or extending to any customer any special service or privilege 

not extended to all customers of the same cla s, for the purpose of 

influencing a sale. 

SECTION 6. Giving, permitting to be given, or offering to give, anything of 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 principle 

of such agent or the r epresented party, without the knowledge of 

such employer, principal, or party. This provision shall not be 

construed to prohibit free and general distribution of articles com- manly used for advertising except so far as such articles are actually 

used for commercial bribery as hereinabove defined. 

SECTION 7. Using or substituting any material or process of m.anufacture superior or inferior to that contemplated in the purchaser's 

specification without proper charge or allowance, to the purchaser. 

SECTION 8. Inducing or attempting to induce., by an meanc::, anv 

party to a commercial contract with any employer to violate such 

contract. · 

SECTION 9. Aiding or abetting any person, firm, as ociation, or 

corporation in any unfair trade practice under this Supplemental 

Code. 
UNIVERSITY OF FLORIDA 

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14 3 1262 08584 2259 

SECTION lb. ~1:aking or giving any purchaser of any product, any 

guaranty or protection in any form against decline in the market 

price of such product. 

SECTION 11. Making any sale or contract of sale of any product 

under any description which does not describe such product in terms 

customarily used in the Subdivision. 

ARTICLE X-SALES FOR EXPORT 

The provisions of this Supplemental Code concerning pricing and 

marketing (Articles VI, VII, and VIII)' shall not apply to direct 

export sales of any product or to sales of any product destined ultimately for export. The term "export" shall include all shipments 

to all places without the several states of the United States and the 

District of Columbia; provided, however, that no shipment t o any 

territory or possession of the United States shall be considered an 

export when any employer is located in such territory or possession. 

ARTICLE XI-~10DIFICATIONS 

SECTION 1. As provided by Title I, Section 10 (b) of the Act, the 

President may from time to time cancel or modify any order, 

approval, license, rule, or r'egulation issued under said Title of 

the Act. 

SECTION 2. Any amendments, additions, revisions, or supplements 

to this Supplemental Code, proposed by the Code Authority, and 

approved by two-thirds of all the votes which might be cast at the 

meeting if all the employers entitled to vote were present and voting, 

shall be in full force and effect upon approval by the Board. Eligibility requirements, method, and effect of voting shall be the same 

as provided in Sections 3 and 8 respectively of Article V hereof. 

ARTICLE XII-~1oNOPOLrES ·-

No provision of this Supplemental Code shalll be .. applied so as to 

permit monopolies or monopolistic practices, or to eliminate, oppress, 

or discriminate against small enterprises. 

ARTICLE XIII-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

employers on the eleventh day after its approval 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 Act, has ended. 

Approved Code No. 347-Supplement No. 47. 

Registry No. 1414-12. 

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