Approved Code No. 347-Supplernent No. 18 Registry No. 1399-M 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

REDUCTION MACHINERY 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 11, 1934 

. . ~ ' 

WE DO OUR PAJtt 

, . 

,_ ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1ss, 

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,attl , "·u ·h.: 09 1 deral 
Approved Code No. 347-Supplement No. 18 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

REDUCTION MACHINERY INDUSTRY 

As Approved on June 11, 1934 

ORDER 

SUPPLEMENTARY CODE OF F AIR COMPETITION FOR THE REDUCTION 

MACHINERY INDUSTRY 

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 Reduction :Machinery Subdivision of Machinery and Allied Products Industry, and hearings 

having been duly held thereon and the annexed report on said Supplemental Code, containing findings with respect thereto, having 

been ma de and directed to the President : 

NOW THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson Administrator for Industrial R-ecovery, 

pursuant to authority vested in me by ExecutiYe 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 Supplemental 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 

Supplemental Code of Fair Competition be and it is hereby approYed 

subject to the following conditions : 

1. That the provisions of Article VIII, S ction (a) insofar as 

they prescribe n, waiting period between the filing with the Code 

Authority ( or such agency as may be designated in the Supplemental 

Code) and the effective date of price Ii ts, a originally filed and/or 

revised price 1i ts or revised terms and conditions of sale, be and they 

hereby are s+ayed pending my further order. 

2. That the provisions of the second paragraph of Article VIII, 

Section ( d) be and they hereby are stayed pending the submission 

of sati factory evidence concerning distribution of the products 

of the Subdivi ion to the _,. dministrator. 

3. That the pro-vi ions of Article IX, Sections 5 to 10 inclusive, 

be and they hereby are stayed for a period of fifteen ( 15) days; 

66508°-657-D9-34 (1) 
2 

then to bec0111e effectiYe unless I, by my further order otherwise 

direct; within which tim cause may be shown, if any there be, why the above pr vi ·ions honlc.1 not become effective· u.nd that the 

Temporary Code Authority end notice of the stay of the e provisions and of the opportunity to show cau ·e why they ·hould not 

becom effective to all known mployer of the Snbdivi ion. 

Approval recommend d. 

H H S. JoH ... - ON, 

Ad1ninistrator fo7' Industrial R cov 1·y. 

BARTO ,v. M RRAY, 

Acting Division Acl·rninist'rat01·. 

vVAsHrNoToN, n.c., 

Jiine 11, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This report relates to the Supplemental Code of Fair Competition for the Reduction Machinery Subdivision of l\1achinery and 

Allied Products Industry as proposed by the Reduction Machinery 

Association. 

A public hearing was held in Washington, D.C. on December 21, 

1933. The public hearing was conducted in accordance with the 

provisions of Title I of the National Industrial Recovery Act and 

all persons were given full opportunity to be heard. 

GENERAL STATEMENT 

The Reduction Machinery 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 Machinery and 

Allied Products Industry, approved by you on the seventeenth day 

of March, 1934. 

The Subdivision includes the manufacture for . ale of centrifugal 

impact crushers, generally known as hammer-mills and ring mills; 

disintegrators of the bar cage type; aravity impact crushers, gener- ally known as Bradford breakers and cleaners; rotary pot crushers; 

pick and needle breakers; single and double roll crushers, for primary, secondary and fine reductions, and auxiliary equipment, including rotary drum type dry mixers ( excluding concrete mixers, 

and mixers for cereals, seeds and nuts) and including spare, repair 

and replacement parts thereof, and includes all those engaged in 

such manufacture for sale. Employers otherwise engaged in the 

Farm Equipment Industry may manufacture for sale and sell reduction machinery for processing grains and fodder on the farm 

under the provisions of the Code of the Farm Equipment Industry 

and not under the provisions of this Code. 

:E;CONOMIC EFFECT 

The annual sales of this Subdivision for the years 1928-193•3 were 

as follows: 

19°S __ _____________________________________________ $3,388,000 

1929 ___________________________________________ 8,381,000 

1930 _________________________________________ 3,073,000 

1931 _____________________________________ 1,850,000 

1932____________________________________ 1, 171, 000 

1933_________________________________ --- 789,000 

(8) 
4 

Annual sales in this Subdivision declined from $3,381,000 in 1929 

to $789,000 in 1933, or 76.7 per cent. Invested capital declined 26.4 

per cent, while production capacity increased 1.6 per cent from 1929 

to 1933. 

The trade association, in its Code application, has estimated that 

this industry employed approximately 511 persons in the year 1929. 

A tabulation of qu stionnaire returns covering about 48 per cent of 

the entire industry, measured by 1929 employment, shows that in 

1929 about 79.6 per cent of the total number of employees were 

factory workers. On the basis of this 79.6 per cent, 104 office work rs 

ha-ve been segregated from the 1929 figure, leaving 407 factory 

work rs. 

E timated factory employment declin d from 407 workers in 1929 

to a minimum of 153 in the third quart r of 1932, or 62.4 per ent. 

Since then, employment increased to 267 factory workers as of 

November, 1933, or 74.5 per cent. 

Estimate 1 man-hours per week declined from 20,635 in 1929 to a 

minimum of 5,750 in Juneb 1933, or 72.1 p r cent, and increa eo 

th reafter to 9,370 in N ovem er, 1933·, or 63.0 per cent. 

:Man-hours, as of November, 1933, are based on a 35.1 hour week 

nnd a force of 267 workers; con equ ntly until ther i an in rea e 

in man-hour requirements, little increase in employment will be 

cau ed by the adoption of the 40-hour week in this industry. 

The minimum wag provi ion for the Subclivi ions which are 

operatin; under the Code of the ]Ha hinery and Allied Produ t 

Indu try are ba ed on a flat minimum hourly rate of 32 nts per 

hour for th South and the following city por ulation diff r ntials 

for all other sections of the United State : 

lll 

luri1 < th " th r ·p cih 1 

a. f llows: 
5 

Estimated number of Factory workers receiving less than designated hourly rates 

Estimated 

Proposed Approximate number reminimum Percent re- ceiving less 

Proposed for South or cities ranging Crom- hourly wage ceiving less than mini-

(cents) than mini- mum regard- mum less of location 

Over 50,000 population _______________________________________ 40 13. 7 '1:1 Over 10,000 to 50,000 ___ _______________________________________ 38 10.4 21 10,000 and under ______ ____________________________________ ___ 36 7. 1 14 Southern minimum __________________________________________ 32 .0 0 

Based on the distribution as of June, 1933, and .the specified percentages of the number of wac-e earners receiving less than the 

designated rates, the adoption of the propo eel minimum rates will 

cause a small increase in factory pa:; rolls. The e tima.ted increase 

as of June, 1933, will probably not exceed one per cent, a urning 

only upward adjustments in the brackets below the 40-cent minimmn 

and no change in man-hour requirements. 

RESUME CF SUPPLEJ.-VIE~ TAL 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Subdivision as u eel in this Supplemental Code. 

Article III provides for the adoption of the employment provisions of the National Industrial Recovery Code of the 1Y1achinery 

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, VIII, 

and IX of the ational Industrial Recovery Code of the l\Iachinery 

and Allied Products Indu try, in accordance with the conditions of 

this Article governing their adoption. 

Article V provides for the establishment of a Code Authority 

and defines its powers and duties. 

Article VI provides for an accounting system and methor:ls of 

cost finding and/ or estimating. 

Article VII provides that no products of the Subdivi ion shall be 

sold or exchanged below a reasonable cost when the Code Authority determines that an emergency exists. 

Article VIII provides for methods of setting up, revi ing and 

filing price lists and discount sheets and terms of sale and payment. 

Article IX ets forth trade practices for the Subdivision. 

Article X states that no proYision of this Supplemental Code 

relating to pri ing and marketing ~hall apply to Export sale as 

defined by the term " Export ' in this Article. 

Article XI provides tha t this Supplemental Code and all the 

provi ions thereof are expre. sl:v made subject to the right of the 

P resident, in accorcL .. nce with Subsection (b) of Section 10 of the 

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

licen e, rule or regulation issued under sai l Act. Provi ion is also 

made that modifications may be submitted by the Code Authority 

to the Administrator for apprm al. 
6 

Article XII. No prov1s10n of this Supplemental Code shall be 

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

eliminate, oppress, or discriminate against small enterprises. 

Article XIII states the effective date of this Supplemental Code. 

FI DI CS 

The A sisitant Deputy Administrator in his final report to me on 

said Supplemental Code having found as herein set forth and on the 

basis of all the proceedings in this matt r : 

I find that : 

(a) Saicl Supplemental Code is well de igned to promote the 

policies and purposes of Title I of the ational Indu trial Recovery 

Act, including r emoYal of obstructions to the free fl.ow of interstate 

and foreign commerce which tend to dimini h the amount thereof 

and will provi le for the general welfare by promoting the organization of industry for the purpose of coop€rative action among the 

trade groups by inducing and maintaining united action of labor 

and management under adequate o-oYernmental sanctions and supervi ion, by eliminating unfair competJtive practices, by promoting the 

fulle t po ible utilization of the pr sent productive capacity of industrie , by avoiding undue restriction of production ( except as may 

b·-' temporarily require l), by increasing the consumption of industrial and agricultural products through increasing purchasing power, 

by re lucing and relieving unemployment, by improving standards 

of labor, and by otherwise rehabilitating indu try. 

(b) aid • ·ubdivision normally employs not more than 50,000 

employ es; and is not classified by me as a major indu try. 

( c) The Supplemental Code as approved compli s in all r pects 

with the pertinent provisions of aid Title of said ct, includin 

without lim'tation Sub ection (a) of Section 3, ub ection (a) of 

S ction 7, an l Subsection (b) of Section 10 thereof; and that the 

applicant association is an indu trial a sociation truly repr ntatiY of th afor said Subdivi ion; and that said as ociation impo 

no in 1uitable re trictions on admi ion to m mb r hip th r in. 

( cl) The upplemental Cod is n t de ig1.1 d to and will not p rmit 

monop li . r monopolistic practi e .. 

( e) Th upplernent 1 Code i not cl signed to and will not li.minat or oppre small nterpri es and will not 01 rat to di criminate 

again t th m. 

(f) Th . eno·a()' l in other step of the n mi pr 

b en 1 pri v l f th right to be h ard pri r t 

uppl m ntal d . 

For th 1 a ons th r for I ha 

o l pr vi l 1 that rtain pro-vi i 

in rti 1 III ti (a) trad pra tic , an 

graph f rti I , ti n ( ) ar 

Orcl•?r. 

R, I tfu1ly, 

II GIT 

J ' N 11, 1 < 1. 

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ai 1 
SUPPLEMENTARY CODE OF FAIR CO~MPETITION FOR 

THE REDUCTION J\1.ACHINERY 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 Code of 

Fair Competition for the Reduction i1achinery Subdivision of the 

Machinery and Allied Products Industry, and together with the 

Code of Fair Competition £or the ]VIachinery and Allied Products 

Industry to which it is a Supplement shall be the standard of fair 

competition for this Subdivision, and shall be binding on each 

employer therein. 

ARTICLE II-DEFINITION 

"Applicant" means the Reduction JYiachinery Association, a trade 

organization, all members of which are engaged in the manufacture 

for sale of the products-of the Reduction Machinery Subdivision of 

the Machinery and Allied Products Industry, which organization is 

truly representative of this Subdivision. 

"Industry" means the J\rfachinery 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. 

"Subdivision" means the Reduction J\tfachinery Subdivision of the 

Machinery and Allied Products Industry as defined and set forth 

in Paragraph (25) of Article II of the Code of Fair Competition 

for the Machinery and Allied Products Industry as f ollows: 

"Reduction Machinery Subdivision" means the manufacture for 

sale of Centrifugal Impact Crushers, generally known as Hammermills and Ring Mills; Disintegrators of the bar cage type; Gravity 

Impact Crushers, generally known as Bradford Breakers and Cleaners; Rotary Pot Crushers; Pick and Needle Breakers; Single and 

Double Roll Crushers, for Primary, Secondary and Fine Reductions, and Auxiliary Equipment, including Rotary Drum Type Dry 

Mixers ( excluding Concrete ]\fixers, and Mixers for Cereals, seeds 

and nuts) and including spare, repair, and replacement parts thereof, 

and includes all those engaged in such manufacture for sale. Employers otherwise engaged in the Farm Equipment Industry may 

manufacture for sale and sell Reduction :Machinery for processing 

grains and fodder on the farm under the provisions of the Code of 

the Farm Equipment Industry and not L1ncler the provisions of this 

Code. 

" Code" means the Code of Fair Competjtion for the J\fachinery 

and Allied Products Industry, as approved by the President, and as 

from time to time amended. 

(7) 
8 

"Person" means a natural person, a partnership, a corporation, 

an association, a trust, a trustee, a trustee in bankruptcy, a receiver, 

or other entity. 

"Employer" means any person engaged in this Subdivision of the 

Industry, either on his own behalf or as an employer of labor. 

"Employee" means any one who is employed in the Subdivision 

by any such employer. 

"The Act" means Tit.le I of the National Industrial Recovery 

Act. 

" The President" means the President of the United States. 

" The Administrator" means the Administrator for Industrial 

Recovery. 

"Basic Code Authority" means the Code Authority for the ]Vlachinery and Allied Products Industry as constituted by the Code. 

" Code Authority" means the Code Authority con tituted for 

this Subdivision as provided by the Code and by this Supplemental 

Code. 

" Group Code Authority" means the Code Authority for any 

group or classification of products within this Subdivision, constituted under the authority of Article V of this Supplemental Co le. 

"Publish" means to make available to the public. 

"Principles" means all essential characteri tics. 

ARTICLE III-AnoPTioN OF E:a,rPLOYME T PRoVI ro.i: oF onE 

The fol.lowing Articles of the Code, viz: Article III '' '\Vorking 

Hours " ; Article IV, " vV ages "; and Article V, ' G neral Labor 

Provi ions", are hereby made a part of this Supplemental "'ode 

with the same effe t as if they were written into this upplemental 

Code. 

ARTICLE IV-ADOPTION OF OTHER Pnovrsro OF ODE 

The followino- Articles of the Code, viz: Article II Definitions ' , Article VI, " \..dministrati n ' to the xt nt that the hall 

be applicable to thi Supplemental ode a such or as it ma her -

aft r be admini tered a an autonomou Co le; rti le VIII ~1 lifications and Termination '; and Article IX '\ ith lra wal 

h r by made a part of thi upplemental o l , ith th 

a if they wer -written into thi unpl m ntal l 

modified. ... 

RTI LE V-OR A.1. IZATIO ... 

f 

tn -
9 

mental Code, as described in Section ( e) hereof, if so desired, by such 

non-members. (3) The .Administrator may, at his discretion appoint one additional member ( without vote and without expense to the Subdivision). 

(b) 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 Admirustrator true copies of its articles of association, by-laws, regulations, and any amencln1ents when made there- to, together with uch other informat~on as to membership, organization, and activities as the Admini trator may deem necessary to 

effectuate the purpo es of the Act. 

( c) In order that the Code uthority shall at all time be truly 

r epresentative of the Industry and in other respects comply with 

the provisions of the Act, the Administrator may provide such 

hearing as he may deem proper; and thereafter if he hall find that 

the Code Authority i not truly representative or does not in other 

resp cts comply with the provi ions of the Act 1nay require an appropriate modification in the method of selection of the Code Authority, or any Group-Code Authority. The Code Authority ma.y adopt rules and regulation for it procedure and employ such personnel as it may deem neces ary. 

( d) Any employer in thi Subdivision shall be eligible for mem- ber ·hip in the Reduction 11achinery A ociation. 

( e) An:5 employer in this Subdi,ision shall be entitled to vote, 

subject to the pro,i ions of Section (a) hereof, at the election of, 

an l hare in the benefits of the activities of the Code Authority 

and ma3 participate in any endea1'ors of the Code Authorit in the 

preparation of any revisions of, or additions or supplements to, 

thi upplemental Code, by paying hi proper pro rata share of the 

reasonable co t of er ating and admini tering it, as deterrnined by 

the Co le Authority, uch vote of employer in this Subdivi ion to 

be determined ~ubject to the prov·i ion of Section (a) hereof, b - a 

66% % Yote of employer who are at that time engaaed in manufac- turing such product uncl are a'· that time coop era ting in this Code, 

as aboYe de cribecl in thi Section ( e) of thi Article V. 

(f) Employers in thi. Sub livi ion Im.Ying a common intere ·" and 

common problem , ma-rr be grouped bv Code uthority for administrati ~Te p_urpo~es into ,;;ariou · Group Subclivi ion , or product 

claus1ficat10n . 

In each Group Sul>~livi ion, r product cla ification, there may be 

a Group-Code Authority appro,;;ecl, or appointed, b Code Authority . 

. (g) I f for!11al complaint i made to Code \..uthority, that pro-

,;;1.·1011. of tlus Suppl -me.ntal ode ha,e been violated by an employer, the . Co e. Au~l10nty or _ pr p 0 r Group-Code Authority, n1ay 

cau e nch mve. bo-at10n or an 1t t be made, to the extent permitted 

by th 1: ct as may be leeme~l n~ce~~ ary. If uch inYe tigation is -~11ade _b y ~T01 tp-Cocl~ Authority, 1t shall report the re ·ult of such 

ni-n'stlo-ntrnn ~>r aucht to Cod~ Authority for action. 

nl Be 1c Code ~-uthonty hall take juri diction the Corle 

\.~1thority ~hall ha\' the right to 1n,e ti.gate to the ext nt permitted by the Act, and anal~-ze any transaction coming under the 
10 

scope of this Supplemental Code, on which any unfair competition is 

alleged, to show evidence of any violation of this Supplemental 

Code, to report any such alleged violation to the proper authorities 

.for prosecution. 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority shall cau,se to be formulated an accounting 

system and methods of cost finding and/or estimating capable of use 

by all employers of the Subdivision. After such system and methods 

have been formulated, full d~tails concerning them hall be mu.de 

available to all employers. Thereafter all employers shall determine 

and/or estimate co.sts in accordance with the principles of such 

mr.>thods. 

ARTICLE VII-SELLING BELOW REA.SON ABLE CosT 

(a) "\Vhen the ode Authority has reason to believe that an 

emergency exists as to any product or products of the ubdivision, 

and that the cause thereof is destructive price-cutting such as to 

render ineffective or seriously endan$er the purposes or the maintenance of the provision of this bupplemental Code, the Code 

Authority may cause an investigation of costs and pricing to be 

made by an impartial a~ency in order to determine the exi tence of 

the emergency and the vode Authority may cause to be determined 

the lowest reasonable co t of the product or products of thi nbdivi ion, such determination to be subject to such notice and hea,rjng 

a the Administrator may require. The drninistrator may approve, 

di approve, or modify the determination. Thereafter, during the 

period o.f emergency, no employer of the ubcli, ision hall ell or 

offer to sell any products of the Subdivision for whi h the lowest 

rea onable cost has been determined at such pric s or upon uch 

terms or conditions of ,sale that the buyer will pay les th refor 

than the lowe t rea. onable cost of such products. 

\Vhen it appear that conditions have changed, the ode uthority upon its own initiative or upon the reque t of any intere t d 

I arty, hall cau c th determination to be reviewed. 

nTI LE VIII-Pnr E Lr T 
11 

after with the Code Authority by any employer, but such revised 

pri'--e lists and/or di count sleet and/ or terms of sale and payn1ent 

shall b filed with the Code Authority ten (10) day in ad-vance of 

the effective date. Copies of such revised price lists and/or li - count sheet and/or tenns of sale and payment for such product, 

with notice of the ffecti-ve date specified, shall be immedia ly pub- li h d and nt to all kn_ "n employers who are cooperating in this 

Sur I lem ntal ode as de cribed in Section ( e) f Article V hereof, 

any of whom may file if h so desire , to b come effecfr, upon the 

date when the revised price li t and/ or di count heet and; or terms 

of sale and pa3 ment first filed shall go into effect, revision of his 

price li ts and/ or discount sheet and/ or terms of sale and paym nt 

tabli~ hing price~ or price and discount not lower or t nns of ale 

and pa) ment not more favorable than tho e established in th revi eel price lists and/ or discount sh0 ets and/ or terms of ale and 

payment fir t filed. Noih"ng in the foregoing shall con titute a 

limitation upon the right of any emplo 'er to file r e-vised li t fixing 

his own price , discounts and term of ale and payment, which 

price and discounts may be either more or les favorable than 

those contained h'l any other price list to be eff ecti ,~e as pro Yi de 

in the first sentence of this paragraph. 

(b) If and when the Code Authority shall dete:::-mine that in any 

branch or group of the Subdivision not now selling it product on 

the ba is of price lists with or without di..,count heet , with fixed 

terms of sale and payment, the distribution or marketing conditions 

in said branch or group are the ame as, or similar to, the listribution 

or marketing conditions in a branch or group of the Subdivision 

where the u e of price lists, with or without discount sheets, and 

fixed terms of sale and payment, is well r ecognized and that a y tem 

of sellino· on net price lists or price lists an~l divcount sheet with 

fixed terms of sale and payment for such product hould be pui into 

effect in ·uch branch or group, then each employer of such branr·h or 

group hall within ten (10) clay after notice of such cl termination, 

file with the Code Authority net price li. ts or price lits an l discoun sheets, containing fixed terins of sale and payment, ·hawing 

his current price and discounts and ternis of sale an l payment, and 

such price li ts and/ or discount sheet and/or terms of ale and pay- ment may be thereafter r evised in the manner hereinabove provided; 

proYided, however, that the Code Authority shall make no determination to 1 lace any product of the Subdi, i ion (not now on a 

price li t basis) on a price list basis, as provided in this paragraph 

(b) of Article VIII unl s 66% % vote of en1ployers "110 are at that 

time engaged in manufacturing such product and are at that time 

cooperating in this ode as described in Section ( e) of Article V 

hereof have given their affirmative con ent to such determination; 

provided however that each employer who report hi ale ' ~hall 

have at least one vote. 

E ach employer shall prepare and shall furnish the Code Authority 

for listribution with such number of copies of hi price lists and/ or 

discount sheets and terms of sale and paym ni as 'ode Authority 

may pre cribe. 

( c) No employer hall sell directly or indirectly by any means 

whatsoever, any product of the Subdivision covered by provisions 
12 

of this Article VIII at a price or at discounts, or on terms of sale 

and payment, different from those provided in his own current net 

price Ii ts, or price lists and discount sheets, provided that nothing 

in the aboYe shall prevent an employer from adding to his own price 

and/ or price list and discount sheets by increasing his job price to 

include unusual selling, engineering, servicing, financin~, financial 

risks, or other similar special charges ( except as provided in Article 

VII above) provided, however, that 1n the event of an employer 

quoting a higher price than the price published in his own price list 

and/ or price list and discount sheets, to take. care of unusual selling, 

engineering, servicing, financing, financial risks, or other similar 

special charges, he shall not subsequently quote a lower price on 

said prospective sale than that price first quoted, except in accordance with revised price lists duly filed or unless he simultaneously 

eliminates part or all of the unusual engineering, servicing, financing, 

financial ri ks or other sin:iilar special charges, for which a correspondino- reduction only may be made. 

( d) No employer shall sell to, or through any broker, jobber, commission account or sales agency ( this is known in the trade as ' J?Ooled 

buying ") who or which is in fact an agent for an organizat10n of 

industrial consumers, with the result that any industrial consumer 

secures a discount, allowance or price other than the. discount, allowance or price provided for in the employer's own current net price 

lists or price lists with discount sheets. 

No em player shall evade any provision of this Code by selling to or 

throu h any dealer, jobber, distributor or other selling agency which 

shall fail to agree to resell in accordance with the provi ions of 

Articles VII, VIII and IX.of this Supplemental Code. 

( e) ·vvherever by the provisions of this Article VIII an emplo er 

is or may be required to or permitted to file terms of sale and payment, such terms shall mean usual or standard terms, and to cover 

any special and/ or unu ual terms definite formulae for determining 

such special and/ or unusual terms shall be filed. 

(f) If and when Co le Authority ·hall d tcrmine that it i unde irabl to continue the filing of net price Ii ts and/or price lists with 

li C?nnt heets andl_or fixed te~ms of sale and payment on an. pro - uct 111 re p ct of which such filing hash retofore been r qnir l uch 

filino- hall cea e and the provi ions of thi rti le hall n a11 l t 

such pr duct unl s and until Code uthority hall ao-ain d t rmine 

that uch filing be mad . 

\.nTr LE IX-TR DE Pn.1 TI E 

inimi al 

an l aC'h 

un 111 fair 

rq y 11, r 
13 

offer 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. 

or the principal of such agent without the knowledge of such employer or principal, provided that no provision of this Code shall be 

construed to prohibit free and general distribution of articles commonly used for advertisino·, except so far as such articles are actually 

used for commercial bribery a hereinabove defined. 

2. Any discrimination between purchasers, by the sale of any article having a publi heel price, at any price other than the seller's 

published price, by means of direct or indirect price conces ions, or 

by means of any privilege not extended to purchasers generally. 

3. Untruthfully advertising, representing, or marking any pro luct, 

with intent to deceive or mislead. 

4. The publishing or circularizing of threat of any suit for infringement of patent or trade mark, or of any other legal proceedings, 

not in good faith, which would tend to harass a competitor or 

intimidate his customers. 

5. The taking in trade or accepting in trade any secondhand or 

old equipment in part payment for new, provided, however, that 

this provision shall not be construed to prohibit in any way the 

return within six months of the date of shipment, to the Vendor 

and the allowance of any fair adju tment thereon by the Vendor 

of any product which shall not meet the purposes for which it was 

sold. Any employer may, however, assist in finding a bona fide 

buyer for said equipment, but shall in no case take any financial 

interest in it. 

6. So long as the maker of any product of this Subdivision bearing the maker's name or trade mark, which has required special 

designing, research or development expense ( or his successor in 

business) continues to make and supply such spare, repair and replacement parts therefor, supplying repair parts for such product 

of this Subdivision unless (a) the name of the maker of such copied 

non-genuine repair parts shall be plainly marked on each part ( or 

if this is impracticable on the package or tag) so that the ultimate 

user is clearly informed by marking on such parts, packages, tags 

and in catalogues, price lists, quoted prices, advertis 0 ments or ad- vertising literature of the manufacturer of such copied non-genuine 

parts that said parts were not made by the original maker of the 

products of the employer of this Subdivision. 

7. The furnishing to any purchaser, and/ or his agent, directly or 

indirectly of detailed shop drawings of the products of this Subdivision without filing a statement of such proposed transaction 

with the Code Authority which may approve or with the approval 

of the Administrator disapprove the transaction within ten (10) 

days by written notice to the employer. 

8. Disseminating false or misleading information relative to competitor's products, selling prices, r eputation, credit or financial 

standing, ability to perform work, or labor conditions. 

9. Inducing or attempting to induce a breach or abandonment of 

contract covering the purcha e or sale of the products of this Subdivision; provided. however, that nothing in this Section shall be 

construed to prohibit the attempt on the part of the owner of or 
14 111111111111m1imi 111111 lli111111~1~1i~i 1111111111 

3 1262 08853 8193 

licensee under any patent to induce a purchaser or future purchaser 

cf any product ,vhich , hall infringe said patent, to avoid such 

purchase. 

10. It shall be an unfair trade practice for any employer to engage in destructive price cutting. 

RTICLE X-SALES FOR EXPORT 

The provisions of this Supplemental Code concerning pricing and 

marketing (Articles VII VIII and IX) shall not apply to direct 

export sales of any product. A similar exemption may be granted 

by the Code Authority of this Subdivision as to sales of any product 

de tin d ultimately for export. Unless otherwise detennined by the 

Code Authority 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 to any 

territory or posse ·sion of the United States shall be considered an 

export when any employer is engaged in the industry in such territory or pas ession. 

ARTICLE XI-MODIFICATIONS 

(a) As provi led by Section 10 (b) of the Act, the President may 

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

rule or regulation issued under Title I of the Act. 

(b) Study of the trade practices of this Subdivision will be continued by Code Authority, with the intention of submitting, from 

time to time, after its effective date, amendments or addit10ns to, 

or revisions of, or supplements to, this Supplemental Code . 

.. A.ny ... uch amendments, additions, revisions, or supplements, proposed by Code Authority, and approved by a 75% vote of the employers shall be in full force and effect upon approval by the 

President. 

The eligibility requirements, method, and effect of such voting 

shall be the ame as provided in Section (b) of Article VIII. 

.... I\RTICLE XII-Mo -oPoLrES 

Th upplemental Code pre ented by Applicant is not de igned 

to pron1ote monopoly, and shall not be so construed or applied as to 

opr re or eliminate small enterprises or di criminate against them, 

and is designed to ffectuate the Poli y of the ct. 

RTICLE XIII-EFFE TIYE DATE 

This uppl m ntal o e shall become ff cti e and bin inO' n 

all per on engag d in this Subdi ision on the el v nth day aft r 

its appr val by the P e id nt. 

Appro-v d ou .. o. n- u11)1 mcut .r o. 18. 

ll0gi:try Number 1 ~0-G--!. 

0