Approved Code No. 105- Supplernent No. 7 Registry No. 1404-55 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENT ARY 

CODE OF FAIR COMPETITION 

FOR THE 

AUTOMOTIVE SHOP 

EQUIPMENT MANUFACTURING 

INDUSTRY 

(A Product Group of the Automotive Parts and 

Equipment Manufacturing Industry) 

AS APPROVED ON NOVEMBER 30, 1934 

WE DO OUR PART 

f " I I 0-= 

u .. U~D STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For s ale by the Superin tendent cf Dacaments, \Vashington. D. C. - - - - - - - - - Price 5 cents 

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

P rinting Office, Washington, D. C., and by district offices of the Bureau of 

F or eign a nd Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ARTMEN'f OF COMMERCE 

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Approved Code No. 105-Supplement No. 7 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

AUTOMOTIVE SH-OP EQUIPMENT 

lVIANUFACTURING INDUSTRY 

As Approved on November 30, 1934 

ORDER 

APPROVING SuPPLEMENTARY ConE OF FAIR Col\IPETITION FOR THE 

AUTOMOTIVE SHOP EQUIPMENT MANUFACTURING INDUSTTIY 

A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFACTURING 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 Supplementary Code of Fair Competition for the Automotive Shop Equipment Manufacturing Industry, a Product Group of the Automotive 

Parts and Equipment Manufacturing Industry, and hearings 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 : 

NOvV, TI-IEREFORE, 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 Executiv,e Order No. 6859, and otherwise, does hereby incorporate by 

reference said annexed report and does 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 does 

hereby order that said Supplementary Code of Fair Competition be 

and it is hereby approved. 

NATIONAL INDUSTRI AL RECOVERY BoARD, 

By "\V. A. HARRIMAN, Adniinistratvve Officer. 

Approval recommended: 

BAnToN ,V. J\1uRRAY, 

Division Administrator. 

"\VASHIXGTON, D. c., 

No1•ernber 30, 1934. 

100032°-1325-110-34 (1) 
REPORT TO THE PRESIDENT 

The PREsmENT, 

The 11 hite House. 

Srn: This Supplementary Code of Fair Competition .for the Automotive Shop Equipment ~1anufacturing Industry, a Product Group 

of the Automotive Parts and Equipment ~1anufacturing I ndustry, 

was submitted to the Administrator on April 6, 1934, by the Code 

Authority Committee of Automotive Parts and Equipment Manuf acturing I ndustry, representing approxjmately 75% of the total volume of sales and 70% of the members of the Industry. 

The Hearing wa conducted in Wa shington on June 27, 1934, 

and the Supplementary Code was revi ed October 24, 1934, and is 

submitted in its present form for approval. Every person who requested an appearance was properly heard in accordance with the 

statutory and regulatory requirements. vVhile the Pro luct Group is nation-wide in character, it has not 

experience 1 any increase in the number of e,stablishments during 

the past few years. 

Article I state the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Supplementary Code. This Product Group of the Automotive Parts 

and Equipment Manufacturing Industry adopts the labor provisions 

of its Basic Code as approved November 8, 1933. 

Article III establishe,s an Administrative Committee consisting 

of a membe1· and an alternate elected by the members of each subdivisi on in accordance with the Yoting provisions provided in the 

By-Laws of Automotive Parts and Equipment :Manufacturers Inc., 

and one· non-voting member may be appointed by the National Industrial Recovery Board. It also provides machinery for obtaining 

statistics and the admini tr ation of the Code. 

Article IV sets forth the fair trade practice.s of this Supplementary Code, which have been especially designed to effect fair 

competition in this P roduct Group of the Industry. 

Article V provides _against monopolies and monopolistic practice and provides for the submission of supplementary provision 

to thi · Supplementary Code or amendment.s thereof, and contain 

the mandatory provisions contained in Section 10 (b) of Title I of 

the Act and tates the effective date of the Supplementary Code 

shall mean the tenth day after it has been approved. 

FINDI GS 

The Deputy A lministrator in his final r-eport to the National 

I ndustrial RecoYery Board on sa id Suppl<'mentary Co le baYing 

found as herein set forth an 1 on the basis of all the proceeding in 

this matter : 

(2) 
3 

The National Industrial Recovery Board finds that: 

(a) Said Supplementary Code is -n-ell de ignecl to promote the 

policies and purpo es of Title I of the ational Industrial Recovery 

Act including removal of ob tructions 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 purpo e of cooperative action among the 

trade groups, by indu"ing and maintaining united action of labor 

and management under adequate governmental sanction and supervision, by eliminating unfair competitive practice , by promoting the 

fullest po ·sible utilization of the present productive capacity of 

industrie , by avoiding undue re triction of production ( except as 

may be temporarily required ), by increa ing the consumption of 

industrial and agricultural products through increa ing purchasing 

power, by reducing and relieving unemployment by improving 

standard of labor, and by otherwi e rehabilitating industry. 

(b) Said Product Group normally employ not more than 50,000 

employees; and is not cla ified by the ational Industrial Recovery 

Board as a major indu try. 

(c) The Supplementary Code, a approved, complies in all respects with the pertinent provi ions of aid Title of aid Act, including without limitation ubsection (a) of ection 3, Subsection 

(a) of Section 7 and Sub ection (b) of Section 10 thereof; and that 

the applicant Product Group is an industrial group truly representative of the aforesaid Industry; and that said Product Group imposes 

no inequitable restrictions on admission to membership therein. 

( d) The Supplementary C de i not designed to and will not 

permit monopolies or monopoli tic practices. 

( e) The Supplementary Code i not de igned to and will not 

eliminate or oppres mall enterprise and will not operate to discriminate again t them. 

(f) Those engaged in other teps of the economic process have not 

been deprived of the rio-ht to be heard prior to approval of said 

Supplementary Code. 

For the e reasons, therefor,e, the National Industrial Recovery 

Board has approved this Supplementary Code. 

For the National Industrial Recovery Board: 

NOVEMBER 30, 1934. 

w. A. HARRIMAN, 

Administrative Offioer. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE AUTOMOTIVE SHOP EQUIPMENT MANUFACTURING INDUSTRY 

A PRODUCT GROUP OF THE AUTOMOTIVE P .ARTS .AND EQUIPMENT 

MANUF .ACTURING INDUSTRY 

ARTICLE I-PURPOSE 

Pursuant to the provisions of Article II of the Code of Fair Com- petition for the Automotive Parts and Equipment Manufacturing 

Industry, duly approved by the President on November 8, 1933, the 

following provisions covering fair trade practices and the administration thereof are hereby established as the standards of Fair Competition for the Automotive Shop Equipment Manufacturing 

Industry, which has been organized into an administrative unit as 

a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and shall be binding upon every member of said 

Product Group. 

ARTICLE II-DEFINITIONS 

The term "Product Group" as used herein is defined to mean the 

production and/or manufacture of automotive machine tools and 

automotive apparatus designed for and used in the maintenance 

and/ or repair of a motor, industrial, marine, or aircraft vehicle 01· 

internal combustion engine and usually sold for use in reconditioning same, and air compres~ors of ten (10) horsepower and under for 

every purpose, excepting electric tools, not exclusively applicable to 

motor car and internal combustion engine repair and/or reconditioning, greasing equipment, automotive lifts, and automotive jacks, 

excepting however, the production and/or manufacture of such 

articles when produced or manufactured by a manufacturer for use 

rxclusively in his own finished product, and provided always that 

this definition shall not include any pro':lucts hereinabove de cribed · or parts thereof or therefor not de igned for and used mainly in the 

maintenance , repair and/ or reconditioning of automotive vehicles 

nnd/ or automotive internal combu tion engines and which are in- cluded within the scope of the definition of any other in lustry as 

clefined in any approved Code of Fair Competition. 

The subdiYision of this P roduct Group are define 1 a follow : 

1. Air Cc,mpressors of 10 hor epc.wer and under and tire inflating 

devices. 

2. Car vVashers. 

3. Brake Service, Chassi Frame, and vVheel Aligning Equipment. 

4. Heayy Equipment. 

5. :Motor Rebuilding Equipment. 

(4) 
5 

The term " Member " or " Member of the Product Group " as used 

herein includes, but without limitation, any individual, partnership, 

association, corporation, or other form of enterprise engaged in the 

production and/or manufacture and/ or assembly and/or the sale as 

a manufacturer of the products of the Product Group (hereinafter 

termed "Products"), either as an mployer or on his or its own 

behalf. 

The term" Group 'is defined to mean the Automotive Shop Equip• 

ment 1\Ianufacturing Group, a ~, Product Group " a.s herein defined, 

at present having its headquarter ' office in Detroit, 1\1ichigan. 

The term " Basic Code " as used h 0 rein is defined to mean the 

Code of Fair Competition for the Automotive Parts and Equipment 

J\,fanufacturing Indu try, as approved by the President on NoYember 

8, 1933, and as amended. 

The term "Code Authority" a used herein is defined to mean 

the Code Authority designated in the Code of Fair Competition for 

the Automotive Parts and Equipment J\.1anufacturing Industry. 

Ann CLE III-AD1\IIKIS'IRA 'IION 

(1) The Administrative Committee of the Group shall consi t of: 

(a) A member and an alternate elected by the member of each 

subdivision who shall be elected at the annual meeting of the Group 

in accor lance with the voting provision provided in the by-law o-f 

Automotive Parts and Equipment Manufacturers, Inc. In the 

absence of the member, the al ernate . hall have full voting powers. 

(b) In addition to the membership a aboYe provided there may 

be one additional member without Yote to be appointed by the National Indu trial Recovery Board, to s rYe without expense to the 

Product Group for uch term as the National Indu trial Recovery 

Board may specify. 

(2) The Administrative Committee of the Group is hereby clesig• 

natecl to as ·ist the Code Authority and the National Indnstrial Re• 

covery Board in the administration of the :fair trad pra· f ce provision hereinafter set forth and the provisions of the Basic Code, 

to which these fair trade practice are a supplement. 

(3) (a) It being found nere~sary, in order to snpport the aclmini tration of this Supplementary Code and to maintain the stanclar ls 

of fair competition e tabli heel hereunder and to effectuate the p licy 

of the Act. the Admini trative Committ e i authorized: 

1. To incur such rerrsonable obligaticn a. are n ce::::sary ancl propPr 

.for the foregoing purposes and to meet such obligations out of funds 

which may be rai ed as hereinafter proYi led and -n-hich shall bn held 

in trust for the purposes of thi Supplementary Cod e ; 

2. To submit to the National Inclu trial RecoYerY Bour l for its 

approYal, subject to such notice and opportunity to be heard as it 

may deem nece sary, (a) an itemized budget of it. e~timated expcn s 

for the foregoing purposes, and (b) an equitable ba is upon which 

the funds necessary to support such budget shall be contributed by 

member of the Pro-duct Group; 

3. After such budget ·and ba is of contribution have been approYed 

by the National Industrial Recovery Board, to determine and obtain 

equitable contribution a above set forth by all members of the Prod-
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uct Group2 and to that end, if necessary, to institute legal proceedings theretor in its own name. 

(b) Each member of the Product Group shall pay his or its 

equitable contribution to the expenses of the maintenance of the 

Administrative Committee, determined as hereinabove provided, and 

subject to rules and regulations pertaining thereto issued by the 

National Industrial Recovery Board. Only members of the Product 

Group complying with this Supplementary Code and contributing to 

the expenses of its administration as hereinabove provided, unless 

duly exempted from making such contribution, shall be entitled to 

participate in the selection of members of the Administrative Committee or to receive the benefits of any of its voluntary activities or 

to make use of any emblem or insignia of the National Recovery 

AdJninistration. 

( c) The Administrative Committee shall neither incur nor pay 

any obligation substantially in excess of the amount thereof as 

estimated in its approved budget, and shall in no event exceed the 

total amount contained in the approved budget, except upon approval 

of the National Industrial Recovery Board; and no subsequent budget shall contain any deficiency item for expenditures in excess of 

prior budget e timates ex ept those which the National Industrial 

Recovery Board shall have o approved. 

(4) (a) The Administrative Committee shall, subject to the approval of the Code Authority and the National Industrial Recovery Board, have the power to adopt by-laws and rules and regulations for its procedure and to obtain from members, through an 

jmpartial agency, such information and reports as are required for 

the administration and enforcement of this Supplementary Code; 

to cooperate with the National Industrial Recovery Board under 

such rules and regulations as may be prescribed by it in r egulating 

the u e of any N. R. A. insignia, and in hearing and adjusting complaints; to initiate, consider, and recommend to the Code Authority 

for transmittal to the National Industrial Recovery Board further 

fair trade practice provisions to govern the members of this Product 

Group. 

(b) If the National Industrial R covery Board shall determine 

that any action of the Code Authority and/ or the A lministrative 

Committee or any agency thereof may be unfair or unjust or contrary to the public interest, the National Industrial Recovery Board 

may require that uch a"tion be suspended to afford an opportunity 

for investigation of the merits of such action and further consideration by such Code Authorjty and/ or the Administrative Committee 

or agency thereof pending final action, which shall not be effective 

unles the National Indu trial Recovery Board approves or unless 

it shall fail to disapprove after thirty days' notice to it of intention 

to yroceed with such action in its original or modified form. 

( c) Each trade or indu trial a ociation dire tly or in Erectly participating in the election or activities of the Admini trative ommittee shall (1) impo e no inequitable restri tion on membership, 

and (2) ubmit to the National Indu trial Recovery Board true 

copies of its articles of a._sociation, by-law , regulation , and any 

amendments when made th reto together with such other information as to membership, organization, an l activities as the National 
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I ndustrial Recovery Board may deem necessary to effectuate the purposes of the Act. ( d) In order that the Admini trative Committee shall at all times 

be truly representative of the Product Group and in other respects 

comply with the provisions of the Ac\ the National Industrial Recovery Board may prescribe such hearings as it n1ay deem proper; 

and thereafter if it shall find that the Admini trative Committee 

is not truly repre entative or doe not in other respects comply with 

the provision of the Act, may require an appropriate modification 

in the method of election of the Administrative Committee. 

(5) All members of this Product Group hall be bound by the 

provi ions of the Basic Code. For this purpo e, all provi ions of 

the Basic Code, are hereby declared to be a part of this Supple- mentary Code. In case of any conflict between the provisions of this 

Supplementary Code and the provi ion of the Basic Code, the provisions of the latter hall govern. As required by Section 7 (a) o:f 

Title I of the National I ndustrial Recovery Act, Sub ections (1), 

(2) and (3) are specifically incorporated herein by reference, and 

made a part hereof, with the ame effect as if written herein, as the 

wage, hour and labor provi ion of this Supplementary Code. 

(6) The Admini trative Committee hall cau e to be formulated 

methods of cost finding and accounting capable of use by all members of the Product Group and hall submit such methods to the 

National Industrial Recovery Board for review. If approved by 

the National I ndu trial Recff'i ery Board, full information concerning such methods shall be made available to all members of the 

Product Group. Thereafter, ea h member of the Product Group 

shall utilize such methods to the extent found practicable. Nothing 

herein contained hall be construed to permit the Administrative 

Committee, any agent thereof or any member of the Product Group 

to suggest uniform additions, percentages or differential or other 

uniform items of cost which are designed to bring about arbitrary 

uniformity of costs or price . 

(7) The Administrative Committee hall be empowered to obtain 

from members of the Indu try uch information and reports as are 

required for the administration of the Code. In addition to information required to be submitted to the Code Authority, members of 

the I ndu try subject to this Code shall furni h uch statistical information as the National Industrial Recovery Board may deem necessary for the purposes recited in Sedion 3 (a) of the Act to such 

Federal and State agencies as it may designate; provided that nothing in this Code shall relieve any member of the Industry of any 

existing obligations to furni h reports to any Government agency. 

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

Industry or any other party, except to such other Governmental 

agencies a may be directe l by the ational Industrial Recovery 

Board. 

ARTICLE IV-TRADE PRACTICES 

I n aduition to the provi ions of Section C of Article VI of the 

Basic Code, the following described acts shall constitute unfair prac- tices and acts of unfair competition : 
8 

(1) Costs and Price Outting.-(a) vVilfully destructive price cutting is an unfair method of competition and is forbidden. Any 

member of the Product Group or of any other industry or the cus- tomers of either may at any time complain to the Administrative 

Committee that any filed and/or offered price constitutes unfair competition as destructiv-e price cutting, imperiling small enterprises or 

tending toward monopoly or the impairment of code wages and 

"'\Torking condition . The Administrative Committee shall TI'ithin 

five (5) days afford an opportunity to the member filing and/or 

offering the price to an wer such complaint and shall within fourteen 

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

not concurred in by either party to the complaint, all papers shall 

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

shall render a report and recommendation thereon to the National 

Industrial Recovery Board. 

(b) "\Vhen no declared emergency exists as to any given product, 

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

that sound cost estimating methods should be us 0 d and that consideration should be given to costs in the determination of pricing 

policies. 

( c) When an emergency exists as to any given product, sale below 

the stated minimum price of such product, in violation of the provisions of paragraphs ( d) and ( e) hereof, is forbidden. 

( d) If the National Industrial Recovery Board, after investigation shall at any time find both (1) that an emergency has arisen 

within the Product Group aclversely affecting small enterprises or 

wages or labor conditions, or tending toward monopoly or other 

acute conditions which tend to defeat the purposes of the Act; and 

(2) that the determination of the stated minimum price for a specified product of the Product Group for a limited period is necessary 

to mitigate the conditions constituting such emergency and to effectuate the purposes of the Act, the Administrative Committee may cause 

an impartial agency to investigate costs and to recommend to the 

National Indu~trial R ecovery Board a determination of the tated minimum price of the product affected by the emergency and thereupon 

the National Industrial Recovery Board may proceed to determine 

such stated minimum price. ( e) \Vhen the National Industrial Recovery Board shall have 

determined such stated minimum price for a spe ified product for a 

stated period, which price shall be reasonably calculated to mitigate 

the conditions of such emergency and to effectuate the purpo s of 

the .r ational Indu. trial Recovery Act, it shall publiPh ·u<'h price. 

Ther eafter, during such stated per'iod no m'"'mbe1· of the Product 

Group hall sell such specified products at a n t 1-e a lized pric below 

said tated minimum price and any uch ale hall be clecme(l destructiYe price cutting. From time to time, the Aclmini tratiY Committee may recommend review or recon ideration or the National 

Industrial Recovery Board may cau e any determination her un 1 r 

to be reviewed or reconsi lered and appropriate action taken. 

(2) Oomniercial Bribery.-To giv , permit to b given, or lire tly 

offer to o·ive anything of value for the purpo 2 of influencing ,r 

rewardin a the action of any employ , uo·ent or repre~ ntatiYe f 

another in relation to the bnsiness of the employ r of uch emplo3 e, 
9 

the principal of such agent or the represented party, without the 

knowledge of such employer, principal or p~rty. Commercial br~bery 

provisions sh~ll not be construed to prohibit f~~e and general distribution of articles commonly used £or advertising except so far as 

such articles are actually used for commercial bribery as herein 

defined. 

(3) Inducing Breach of (J_on_tracts.-To wilfully induce or '.1ttempt 

to induce the breach of existing contracts between competitors or 

their customers by any false or deceptive means, or interfere with or 

obstruct the performance of any such contractual duties or services 

by any such means, with the purpose and effect of hampering, injuring or embarrassing competitors in their business. 

( 4) Inaccurate Labeling.-To list, brand, mark, or pack any prod- ucts of the Product Group in any manner which is intended to or 

does deceive or mislead purchasers in some material particular, or 

the failure to brand such products for the purpose or with the effect 

of misleading or deceiving purchasers in some material particular, 

with respect to such products (including but without limitation their 

brand, grade, quality, quantity, origin, size, substance, character, 

nature, finish, material, content, or preparation). 

( 5) Inaccurate Advertising.-To publi h advertising ( whether 

printed, radio, display, or of any other nature), which is misleading 

or inaccurate in any material particular, or in any material way to 

misrepresent any products (including but without limitation their 

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 bu iness 

conducted. 

(6) Approval Selling.-To sell and/or ship the products of this 

Product Group on approval. 

(7) R eplacin_g Competitor's Stocks.-To liquidate, purchase, or 

acceI?t another member's product from any buyer. 

(8) Catalog Pages.-To supply catalog pages to customers in 

excess of their normal requirements for their own salesmen and their 

inside organization, unless a charge representing the cost of such 

excess quantities is made to the customer. 

(9) Guarantee of P1·oducts.-To sell the products of this Product 

Group under any other Guarantee of Product than the followjng: 

"The manufacturer guarantees all parts of the product shipped 

under this agreement, for the period of time stated in his standard 

price sheet, against defective material or workmanship (but not 

against damage caused by accident, abuse, or faulty installation) 

w11en the product is installed in accordance with the manufacturer's 

specifications, and wiJl repair or replace free of cLarge (£. o. b. factory) all such defective parts if r eturned to the factory charges 

prepaid, and if the defect is proven, transportation charges will be 

paid both ways." 

(10) Advertising and Pr01notional Schemes.-To patronize, 

through allowances or otherwise, advertising or promotional schemes 

in any form except where the payments therefor are for specific 

promotion performances which are pos ible, practicable and capable 

of being audited. Arrangements for any such services shall be in 

agreements entirely separate and distinct from sales agreements 
10 

between a memb~r and his customer, and shall definitely specify exactly how much shall be paid (in money or credit, goods or services) 

for such promotional services, exactly what services shall be rendered 

and the method which will be employed in auditing the performance 

of such services. 

(11) Consignments.-(a) To ship stocks of the products of this 

Product Group to distributors, contractors, manufacturers' agents, 

and/or others except samples to member's salesmen, on consignment 

or under the "Floating Credit or Ledger Balance" plan. All ex- isting agreements regarding such shipments shall be terminated 

within sixty (60) days from the date of approval of this Supple- mentary Code, with the exception of existing contracts which, by 

their terms, cannot be terminated by that date, and copies of such 

contracts shall be filed with the Administrative Committee. 

(b) To deliver air compressor or car washer demonstrating samples from sample account to any customer. 

(c) To ship merchandise without an order or without the approval 

or the knowledge of the reseller under the guise of its being supplied 

as a sample to be examined. 

(12) Price Guaranty.- To guarantee the products of this Product 

Group against advance or decline in price. 

(13) Returned Products.-Obsolescence- To accept for credit the 

return of products of this Product Group no longer appearing in a 

member's current price list. Group products still appearing in a 

member's current price list may be so accepted, provided a charge is 

made covering full transportation both ways, a reasonable handling 

charge, a reasonable reconditioning charge, plus a minimum of at 

least a double covering order, and provided permission is granted by 

the member to have such products returned. 

(14) Classification of Custorners.-The Code Authority shall 

cause to be formulated and keep current a classificat.ion of all types 

of customers of the Industry. Such classification shall be subject to 

the disapproval of the National Industrial Recovery Board and shall 

contain: (a) A complete list of all of the classes of customers of the 

Industry, including a class to cover every known type of customer; 

and (b) definitions or descriptions of the several classes in terms of 

functions performed, or in other appropriate terms such as purchasers of defined quantities. 

After submission to the National Industrial Recovery Board, if 

there is no disapproval or request for suspension of action within 

twenty (20) days, full information concerning the classification 

~hall be made available to all members of the Industry. No one shall 

by intimidation, coercion, or other undue influence cause or at- tempt to cause the inclusion of any customer in or the exclusion of 

any customer from any class of customers, or the exclusion of any 

class of customers from the classification, or the use of uniform or 

stipulated prices, discount, or differentials and each member of the 

Industry may at all times classify his own customers in accordance 

with his own judgment. 

(15) Open Price Filing.-(a) Each member of the Product Group 

shall file with a confidential and disinterested agent of the Administrative Committee or, if none, then with such an agent designated 
11 

by the National Indu trial Recovery Board, identified lists of all 

of his prices, di counts, rebates, allowance , and all other t-erms or 

conditions of sale, hereinafter in thi Section ( 15) referred to as 

'price term ", which li ts shall completely and accurately conform 

to and represent the individual pricing practices of said member. 

Such lists shall contain the price term for all such standard products 

of the Product Group as are old or offered for sale by said member 

and for uch non tandard product of aid member .a shall be designated by the Admini tratfre Conu11ittee. Said price terms shall in 

the fir t instance be filed within fifteen ( 15) days after the date of 

approval of thi provision. Price terms and re,ised price term 

·hall become eff ecti, e imn1ediately upon receipt thereof by said 

agent. Immediately upon receipt thereof, said ag nt hall by telegraph or other equally prompt means notify said member of the 

time of such receipt. Such list and re,i ions, together with the 

effective time thereof, shall upon receipt be immediately and simultaneously distributed to all member of the Product Group and to 

all of their cu tomers who have applied therefor and have offered 

to defray the co t actually incurred by the Admini trative Committee in the preparation and distribution thereof and be available 

for inspection by any of their cu tomers at the office of such agent. 

Such lists or revi ion or any part thereof shall not be made available· 

to any per on until released to all members of the Product Group and 

their customers, a aforesaid· pro, ided, that prices filed in the fir t 

in tance shall not be relea ed until the expiration of the afore aid 15 

day period after the approval of this Supplementary Code. The 

Administrative Committee shall n1aintain a permanent file of all 

price terms filed as herein provided, and shall not de troy any part of 

such records except upon written con ent of the ational Indu trial 

Recovery Board. Upon reque t the Admini trative ommittee shall 

furnish to the J ational Indu trial Recovery Board or any duly designated agent of the J ational Indu trial Recovery Board copie of 

any such list or re i ion of price terms. 

(b) When any member of the Product Group ha filed any revision, such member shall not file a higher price within forty-eight 

( 48) hours. 

( c) No member of the Product Group hall sell or offer to sell any 

products of the Product Group for which price terms have been filed 

pur uant to the provi ions of this Section (15), except in accordance 

with su h price term . 

(d) No member of the Product Group shall enter into any agreement, under tanding, combination or conspiracy to fix or maintain 

price term nor cause or .attempt to cause any member of the Product 

Group to change his price term by the use of intimidation, coercion, 

or any other influence incon istent with the maintenance of the free 

and open market which it i the purpose of thi ection (15) to 

create. 

(16) Terms of Sale.-Term of ale shall not be more favorable 

than thirty (30) day net, 2% tenth proximo. The Administr.ative 

Committee hall proceed to e tabli ·h, after a s11r, y of the practices 

now in existence in the various subdivisions of this group, and subject to the appro,al of the Code Authority and the :::.tional Indus-
12 

trial Recovery Board, .a plan :for de:ferred payment sales and, when 

established, no more favorable terms than provided in this plan shall 

be allowed by any member of the respective subdivisions. 

(17) Lwmp Sum Bidding.-To submit bids on any other than a 

unit price basis whenever lump sum bids are made on Product Group 

products. 

(18) Export Trade.- Except as may be ubsequently set forth in 

a specific or supplementary export supplement for this Product 

Group, the provisions of this Supplementary Code now or hereafter 

adopted with regard to prices, discounts, deductions, allowances, ex- tras, commissions, or methods and/ or te.rms of sale, are not to apply 

to direct export sales or to sales in course of export (i. e., sales 

destined ultimately for export) or to sales of products used in the 

manufacture of products for export. "Export Trade" shall be as 

defined in the Export Trade Act adopted April 10, 1918. 

ARTICLE V-GENERAL 

(1) No provi~ion of this Supplementary Code shall be so applied 

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

oppress, or discriminate against mall enterprises. (2) Such of the provisions of this Supplementary Code as are not 

· required to be included herein by the Act may, with the approval of 

the National Industrial Recovery Board, be amended or eliminated 

upon proposal by the Product Group or any member thereof if it 

appear that the public needs are not being served thereby an<l as 

changes in circumstances or experience may indicate. 

(3) It is contemplated that from time to time supplementary provisions of this Supplementary Code or amendments thereof will, 

after approval by the Product Group and/ or the subdivisions there- of, be submitted by the Administrative Committee through the Code 

Authority for approval to prevent unfair competition in price and 

other unfair and de tructive competitive practices and to effectuate 

the purposes of the Act. Upon approval by the National Industrial 

Recovery Board after such notice and hearing as it may prescribe, 

such supplementary provisions or amendments shall become binding 

as a part of thi Supplementary Code. 

( 4) As required by Section 10 (b) of Title I of the National Industrial Recovery Act, this Supplementary Code and all of the pro- visions thereof are expressly made subject to the right of the Pre ident from time to time to caned or modify any order, approval, 

license, rule, or regulation issued under said Act. 

( 5) By as en ting to this Supplementary Code no member of this 

Product Group hall be held to have waived any of his constitutional 

rights. 

(6) Violation by any member of this Product Group of any pro- visions of this Sllpl lementary Code is an act of unfair competition, 

and the offender hall be ubject to the penalties imposed by the Act. 

(7) The " Effective Date" of this Supplementary Co le . hall be 

the 10th day after it shall have been approved. 

Approved Code No. 105- up11lement No. 7. 

Registry Jo. 140-:1-55. 

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UNIVERSITY OF FLORIDA 

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