Approved Code No. 347-Supplement No. 7 Registry No. 1399-54 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

BEATER AND JORDAN 

AND ALLIED EQUIPMENT 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON MAY 14, 1934 

WE DOOURP~ 

I I 

I • 

•• ' ! r 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

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

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Boston, Mas . : 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. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

New Orleans, La. : Room 225-A, Customhouse. 

New York, N.Y.: 734 u tomhouse. 

Norfolk, Va. : 406 East Plume Street. 

Philadelphia. Pa. : 422 Commercial Trust Building. 

Pitt burgh, Pa.: Chamber of Commerce Building. Portland, Oreg. : 215 New Post Office Building. 

St. LouL, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809' Federal Office Building. 
Approved Code No. 347-Supplement No. T 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

BEATER AND JORDAN AND ALLIED EQUIPMENT 

INDUSTRY 

As Approved on May 14, 1934 

ORDER 

SUPPLEMENTARY CODE OF F AIR COMPETITION FOR THE BEATER & 

J ORDAN & ALLIED EQUIPME :rT INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly ma le 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 o-f Fair Competition for the Beater & Jordan & 

Allied Equipment Subdivision of :Machinery and Allied Products 

Industry, and hearings having been duly held thereon and the annexed report on said Supple1nental Code containing findings with 

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

O,V, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference aid 

annexed report and do find that said Supplemental Code complies 

in all respects with the pertinent provi ion and will promote the 

policy and purpo es of said Title of said Act· and do hereby order 

that said Supplemental Code of Fair Competition be and it is hereby 

appro, ed subject to the following conditions: 

1. That the Beater & Jordan & Allied Equipment ~1anufacturers 

As ociation hall amend its Article of A sociation to the sati faction of the Administrator within the time set forth in the Order 

of the Admini trator, dated April 26, 1934, which order extended 

the original period of thirty (30) days set forth in the Executive 

Order of March 17 1934, approving the Basic Code of Fair Competition for the ~1achinery and Allied Product Industry. 

2. That the provi ion of Article VIII, Se.ction (a), in ofar as they 

prescribe a waiting period between the filing with the Code Authority 

( or uch agency as may be designated in the Supplemental Code) 

59024°-544-83-34 (1) 
2 

and the effective date of price lists, as originally filed and/or revised 

price lists or revised terms and conditions of sale, be and they hereby 

are stayed pending my further order. 

3. That the provisions of Article VIII, Section ( e) be and they 

hereby are stayed pending the submission of satisfactory evidence 

concerning distribution of the products of the Subdivision to the 

Administrator. 

HUGH s. JOHNSON' 

Administrator for Industrial Recovery. 

Approval recommended: 

A. R. GLANCY, 

Division Admini'strator. 

w ASHINGTON, D.C., 

May 14, 1934. 
REPORT TO THE PRESIDE T 

The PRE IDE T, 

T Ji White II ouse. 

IR: Thi r port r late · t the Supplemental Code of Fair Competition for the Beat r & Jordan & Allied Equipment Subdivision 

of Ma hinery and lli d Products Indu try as propo ed by the 

n at r & J or lan & Allied Equipment l\-fanufa turer ociation. 

A public hearing wa held in ,¥" a hington, D. . on December 6, 

1933 and reconvened on December 21, 1933. The public h arino-s 

were conducted in accordance with the provi ion of Title I of the 

National Industrial Re overy Act and all p r ons were given full 

opportunity to be heard. 

GENER \L STATEMENT 

The Beater & Jordan & Allied Equipment Subdivi ion, being 

truly repre entative of the manufacturers of the products defined 

in Article II of the Supplemental Code, ha elected to formulate and 

submit a Supplemental Code of Fair Competition a provided in the 

second paragraph of Article I of the Code of Fair Competition for 

the Machinery and Allied Products Indu try, approved by you on 

the se-, enteenth day of J\1arch, 1934. 

The Subdivi ion as defined in the Supplemental Code include the 

manufacture and sale of beaters and jordans and allied equipment. 

ECONOl\IIC EFFECT 

Annual sales in 1932, according to the A ociation, were approximately one-third the 1929 level. They declined from 5,185,000 in 

1929 to $1,617,000 in 1932. The Subdivi ion ha estimated ales for 

1933 to be $1,455,000, which indicates a decline of 10 per cent from 

the 1932 leYel. 

E 'timates of approximate employment for the entire Sub livi ion 

submitte l by the Trade As ociation, indicate that employment 

decline l from 900 in 19:.9 to 454 in 1932, or 49.6 per cent. Employm nt in 1933 incr a ed to 5 3, or 28.4 per cent. 

No figure are a ailable on the full-tim hour per week for the 

entire Subdi,i ion. A summarize 1 tabulati n of que tionnaire 

returne l by the indu try show that in June, 1929 the averao-e workino- time wa 8 to 11 hour per day; in June, 1933, to 10 hour per 

day; an 1 in Oct b r, 1933, 7 to 9 hours per lay. In October 1933, 

th ubdivi ion "a workino- two hift . 

verarre hour per w ek wer report d to be 51.6 in June 19:..9; 

43.5 in June 1933; and 39.7 in October 1933. In October, 1933 the 

averao- hout wer 23.1 per cent le than the June 1929 averao-e. 

Th ffect of the 40-hour pro, ision with production at more normal level may be e timate l on a ba i of the 1930-1931 average o:f 

(3) 
4 

total man-hours per week divided by the number of hours prescribed 

by the Code. After 1929, man-hours declined steadily from 46,440 to 

a minimum of 13,670 in 1932, or 70.6 per cent. Since then, manhours have increased to 23,620, or 72.8 per cent. 

If it is assumed that the 26,475 average man-hours for 1930-1931 

are representative of the volume of production for those years, and 

a reasonable measure of man-hour requirements in a more normal 

period, the adoption of the 40-hour week would require a force 0£ 

approximately 660 employees, or 73 per cent of the 1929 working 

level. 

However owing to the impossibility of all employees of the Subdivision working the maximum 40 hours, the average work week will 

be shorter, say 36 assumed effective hours, and the employment correspondingly greater, viz: 735 workers will be required to produce 

the 1930--1931 volume. 

The minimum wage provisions proposed for the subdivisions 

which are operating under the Code of the Machinery and Allied 

Products Industry are based on a flat minimum hourly rate 0£ 32 

cents per hour for the South and the following city population 

differentials for all other sections of the United States: 

Over 50.000 population _________________________ 40 cents per hour 

Over 10,000 to 50,000 population ________________ 38 cents pet hour 

10,000 population and under ___ __ _______________ 36 cents per hour 

In addition to the minimum wage rates shown above, the Code 

provides that women engaged in sub tantially the same work as 

men shall receive the same rate of pay as such men employees; that 

the minimum wage for women employees employed in plant oper ations shall not be less than 87.5 per cent of the proper rate for the 

locality in which employed as specified; and that the minimum in 

the South shall be not less than 32 cents per hour. 

E sUmated nwniber of factory workers rece'iving less than designated hourly 

rates 

Propo~ed minimum hourly rate,g 

40 cents (other U.S.) __ -------------------------------------------------- 38 cents (other U.S. )_ ____________________________ ______________________ _ 36 cents (other U.S.) _____ ______________________________________________ _ 32 cents (Sou th) __ ___ __ ________________________________ ,_ ____________ ___ _ _ 

Distrihution of factory workers 

receiving less than the mini- mum regardless of location 

Approximate Approximate 

percent number 

44.4 

39. 3 

34. 7 

20.9 

150 

132 

117 

70 

Based on the distribution as of June 15, 1933 and on the specified 

percentages of the number of factory worker receiving le s than 

the designated rates shown in th above table, the adoption of the 

proposed minimum rates will probably can e an increa e in factory 

payrolls. The c timated increase as of June 15, 1933, r O'ardless of 

location of the workers, will probably, nnder the mo t favorable 

conditions, not ex eed 9.0 per cent assuming only upward adjn tment 

in the brackets below the 40 cent minimum and no change in manhour requirements. 
5 

RES ME OF UPPLEME ... TAL CODE 

Article I tare the purpo e of the upplemental Co le. 

Arti le II ets forth c rtain d finitions. 

Article III provide -for the a loption of the empl yment provi ion of the ational Indu trial Recovery ode of the 1:achinery 

and Alli d Produ ts Indu try, a ap1 rove l by you n the eventeenth 

day of }tlar h 1933, and a from time to time am n led. Article IV provid for the adoption of Arti le II, VI, VIII and 

IX of th ational Indu -trial Re ov ry Code of the ·Machin ry and 

Alli d Produ t Indu try in accordance with the onditi ns in this 

Articl gov rning th ir adoption. 

Articl V provides for the e -tabli hment of a ode Authority and 

defines it pow rs and duties. 

Arti le VI provide for the establi hment of a uniform accounting 

system and method of co t finding and/ or estimating to be u el by 

all employers in the Subdivi ion. 

Article VII provides that no product of the Subdivi ion hall be 

sold or exchanged below a r ea onable cost when the Code Auth rity 

determines that an emergency exi ts. 

Article VIII provide for the filing of price with the Code Authority and for the dis emination of price information by the Co le 

Authority. 

Article IX defines certain trade practice a being unfair methods 

of competition and proYides that these practice be eliminat d. 

Article X provides for the exclusion of direct export ales from 

the provi ions of the Supplemental Code concerning pri ·ing and 

1narketino- of the products of the Subdivision. 

Article XI contain the method by which the Code may be mo lified 

or amended. 

Article XII contain the provi ion in reference to 1nonopolie and 

di crimination again t mall enterpri e required by the t. 

Articl XIII tates the effective date of the Supplemental Code. 

FINDINGS 

The i tant Deputy clmini tra tor in hi final report to me on 

aid Supplemental Code haYing foun l a herein ct forth and on the 

ba js f all the proceeclino- in thi matter: 

I fin l that: 

(a) Said upplemental Code is well de igned to promote the policie and purpo ·e of Title I of the National Indu trial Re oYery ct, 

includino· removal of ob tru tion to the free flow of int r tate and 

f orei()'n commerce which tend to dimini h the amount ther of and 

will pr Yide for the o·eneral welfare by prom tino· the oro-anization 

of indu try for the purpo e of cooperative acti n am ng the trade 

o-roup by inclu ing and maintaining united action of labor and managem nt under a lequate goY rnmental anction and 111 erYi ion, 

b eliminatin unfair competitive practice b3 promotino· the full . t 

po ible utilization of th pr ent pro lu ti,e capacity of indu trie , 

b avoi ling undue re triction of pro luction ( except a may b temporarily require l) by increa inO' the con umption of indu trial and 

agricultural product through increa ing purcha ing power, by re-
6 

ducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

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

employees; and is not classified by me as a major industry. 

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

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

Section 7, and Subsection (b) of Section 10 thereof; and that the 

applicant association is an industrial association truly representative 

of the aforsesaid Subdivision ; and that said association imposes no 

inequitable restrictions on admission to membership therein. 

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

n1onopolies or monopolistic practices. 

( e) The Supplemental Code is not designed to and will not eliminate or oppress small ente.rprises 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 the e reasons, therefore, I have approved this Supplemental 

Code, provided that certain provisions relating to price publication 

are stayed; that the Articles of Association of Applicant be revised 

as stated in the Order; and that Section ( e) of Article VIII be 

stayed pending submission of satisfactory evidence concerning distribution of the products of the Subdivision to the Administrator. 

Respectfully, 

MAY 14, 1934. 

HUGH s. JOHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE BEATER & JORDAN & ALLIED EQUIPMENT INDUSTRY 

A DIVI ION OF THE MAGID E.l{Y A D ALLIED PR D 

ARTI LE I-PURPO E 

To effectuate the policy of Title I of the National Indu trial 

Recovery A t, the following provi ions are tabli h d a a upplemental Code for the Beater & Jordan & Allied Equipm nt 

Manufacturing Subdivision of the Machinery and Allied Products 

Indu try and together with the ational Industrial Re overy o le 

of Machinery and Allied Pro luct Indu try to which it i a Supplement shall be the standard of fair comp tition for thi ubdivision, 

and shall be binding on each employer therein. 

ARTICLE II-DEFI ITION 

"Applicant ' means the Beater & Jordan & Allied Equipment 

Manufacturers Association of the Pulp and Paper Industry a trade 

organization, all members of which are engaged in the manufacture 

for sale of the products of the Beater & Jordan & Allied Equipment 

Manufactnrino- Subdivi ion of th Machinerv and Allied Products 

I?dustry, which organization i truly repre eiitative of this Subdivi- 10n. 

"Industry" means the Machinery and Allied Product Indu try, 

as defined in its r ational Industrial RecoYery Code a approved by 

the Pre ident March 17 1934 and as such definition may from time 

to time be amended. 

" ubdi vision mean thi Beater & Jordan & Allied E quipment 

:Manufacturing subdivision of th l\1achinery and Allied Products 

Indu ry as defined and et forth in Paragraph 3 of rticle II of 

the ational Industrial Recovery Cod of the 1a hinery and lli d 

Product Indu tr a follow : 

' Beater & Jordan & Allied Equipment Subdivi ion mean · the 

manufa ture for ale f Beat~r & J or lan & Allied Equipment and 

parts thereof and include all tho e engaged in uch manufacture 

for ale. 

' ode means the ational Indu trial Recovery Code of the Machinery and lli d Produc Indu try, a appro, el b the Pre ident, 

and a from time to time amen le l. 

'Per on mean a natural p r on a partner hip a corpora ion an 

a ociation, a tru t a tru tee a tru t e in bankru ptc, a receiY r or 

other entit . ~ 

"Employer" mean any per on n aged in thi ubdiv; ion of the 

Indu try, either on his own behalf or a an emplo er of labor. 

(7) 
8 

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

by any such employer. 

"The Act" means Title 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 Machinery and Allied Products Industry as constituted by the Code. 

" Code Authority" means the Code Authority constituted 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, consti- tuted under the authority of Article V of this Supplemental Code. 

"Publish " means to make available to the public. 

ARTICLE III-EMPLOYl\IENT PROVISIONS 

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

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

Provi ions", are made a part of this Supplemental Code, with the 

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

ARTICLE IV-AnoPTION OF OTHER PROVISIONS OF ConE 

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; Article VIII, "Modifications 

and Termination"; and Article IX, "Withdrawal"; are made a 

part of thi Supplemental Code with the san1.e effect as if they were 

written into this Supplemental Code, except as herein modified. 

ARTICLE V 1- ORGANIZATION AND AmvnNISTRATION 

(a) To administer, supervise and facilitate the performance of the 

provisions of this Supplemental Code, there is hereby establi hed a 

Code Authority which shall consi t of not les than seven (7) nor 

more than nine (9) members, even (7) of whom are to be appointed 

by the Executive Committee of the Applicant. 

1. One (1) additional member to be selected in any fair manner, 

with the approval of the Administrator, by employers in thi subdivision not members of the Applicant, who are cooperating under this 

Code as described in Section ( d) b'.ereof, if so lesired by uch nonmembers. 

2. The Administrator may, at hi di cretion, appoint one ( 1) 

additional member without vote and without expen e to the Sub. 

division. 

(b) The Code Authority shall adopt rule an l regulations for its 

procedure and employ uch per onnel as it may leem nece. ary. 

( c) Any employer in this Subdivi ion hall b eligible f r membership in the Appli ant. 

1 See paragraph 2 ( 1) of order approving this Code. 
9 

Any employer in thi Subdivi ion hall be entitled t vote ubject 

to provi ion · of ction (a) h reof at lection of and hare in, the 

benefi of the activitie of th Cod Auth rity and may parti ipate 

in any en l avor of the Applicant and o i Authority in the pr paration of any revi i n of or addition or ui pl m nt to thi uppl m ntal od , ubject to provi ion. f thi cti n (a) and ection (d) of Articl V. 

(d) Ea h employ r in thi ubdivi. i n, subj t t th juri di tion 

of thi upplemental Code and ac ptin o- th benefits of the a tivitie of the Cod Authority h r und r, shall pay to th ode Authorit hi proporti nate har of th amount nee ·ary to pay the 

co t of a emblino- analyzing and publicati n of uch r ports and 

data and of the maintenance of th C d Authority in onnection 

with it activitie r lative to the preparation and admini tration of 

thi uppl mental Code aid proportionat har to be ba ed upon 

the volume of shipm nt for the next prece ling al ndar year and/or • 

su h other factor a the Code Authority may prescribe and the 

Admini trator may approve. 

( e) With a view to keeping the Pre ·ident informed, as to the 

observance or non-ob ervance of this Supplemental Code, and as to 

whether thi subdivi ion is taking appropriate t ps to effectuate the 

declared policy of the Act, each employer shall prepare and file with 

such per on or organization a Code Authority may designate, and 

at such tim and in uch manner as may b by Code Authority prescribed ( to be held and u ed subject to the limitation of thi Article 

V), statistics of plant capacity volume of production, volume of 

ale in unit and dollar , order received, unfilled orders, tock on 

hand inventories "raw and fini hed' number of emplo:-5 ee ·, wage 

rate , employee earning· and hours of work and uch other data or 

information a the Code Authority, ubject to review by the A lmini trator, may from time to time require. 

Code Authority hall file with the Basic Code Authority uch of 

the data and tati tical information referred to in preceding paraQ'Taph a may oo required. 

In ad lition to information required to be ubmitted to Ba ic ode 

Authority, there hall be furni hed to Government ag ncie uch 

tati tical information a. the Admini trator may deem ne es ary for 

the purpo e re ite i in ection 3 (a) of the A t. 

(£) Except a oth rwis prm ided in the Act all stati tic data 

and information filed in ac orclance with the provision of thi uppl m ntal Cod hall be confi lential; provided how v r, that nothin o· her in hall pre, ent the publi ati n of eneral ummari of 

uch tati tic , data and information. 

The stati tic data and information of one employer shall not 

be revealed to any other emplo) er e:xc pt that for th purpo e 

of admini t ring r facilitating the nforcement of the provi ions 

of thi upplemental Code 'ode uthorit , by it duly authorized 

r I re entative ( wh hall not be an emplo er nor in the employ 

f any emplo er aff ted by thi Supplemental od ) hall have 

a to any ancl all tati ti data and information that may be 

furni he l in a ordance with the proYisions of thi Supplemental 

C l. 
10 

(g) Aggregations of employers having a common interest and 

common problems may be gTouped by Code Authority £or a~ministrative purposes. There shall be a Group Code Authority approved or appointed by _Code Authority £or each_ such group ... If formal complaint 1s made to Code Authority that prov1s10ns 

of this Supplemental Code have been violated by any employer, 

the Code Authority, or proper Group Code Authority, m3:y cause 

such investigation or audit to be made, to the extent pernntted by 

the Act, as may be deemed necessary. If such investigation is ma~e 

by Group Code Authority it shall report the results of such investigation or audit to Code Authority for action. 

Code Authority shall have the right, to the extent permitted by 

the Act, to analyze any transaction coming under the 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 

• action. 

(h) It is, however, expressly provided that the jurisdiction of 

Code Authority under this Supplemental Code over any employer 

shall be limited to that portion of the business and employment 

of such employer which is within this Subdivision. 

(i) 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 Administrator may provide such hearing as he may deem proper; and thereafter if he 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 in the method of selection of the Code 

Authority, or any Group-Code Authority. 

ARTICLE VI-AccouNTING AND CosTING 

The Supplemental Code Authority shall cause 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 details concerning them 

shall be made available to all employers. Thereafter all employers 

shall determine and/ or estimate costs in accordance with the principles of such methods. 

ARTICLE VII-REASON ABLE CosT 

\Vhen the Code Authority determines that an emergency exists 

in this industry and that the cause thereof is destructive price-cutting 

such as to render ineffective or seriously endanger the maintenan e of 

the provisions of this Code, the Code Authority may cau e to be 

determined the lowest reasonable cost of the products of this indu - try, uch determination to be subject to such notice and hearing a the 

Administrator may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period 

of the emergency, it shall be an unfair trade practice for any m mber of the industry to sell or offer to sell any products of the indu try 

for which the lowest reasonable cost has been determined at such 
11 

prices or upon such term or conditions of sale that the buyer will 

pay less therefor than the lowest r asonable cost of such produ~ts. 

Wh nit appears that onditions hav hanged, the _Code Authority, 

upon its own initiativ or upon the requ t of any interested party, 

shall cause the determination to be reviewed. 

ARTICLE VIII-Pru E LrsTs 

(a) If and wh n the Code Authority d termines that in any group 

of the Subdivi ion it has been the generally recognized practice to 

ell a p cified product on the ba is of net price list or price lists 

with di count she ts and fix d terms of sale and payment, ach 

manufa turer of su h produ -t shall, within ten (10) day after 

notice of u h d termination, file with Code Authority a net pric~ 

Ii t, or a price Ii t with discount sh et, a the case may be, individually prepared by him showing his current price or pri e and dis-

·ount including f.o.b. points and terms of ale and payment, and 

the Code Authority shall immediately publish the same and end 

opies thereof to all known manufacturers of such specified products 

who are cooperating in the admini tration of this Supplemental 

ode. 

Revised price Ii ts and/ or di count heets and/ or term of sale and 

payment may be filed from time to time thereafter with the Code 

Authority by any manufacturer of such product, to become effective 

ten (10) days from date of filing with Code Authority, unle s Code 

Authority shall authorize a shorter period, and copies thereof with 

notice of the effective date specified, shall be immediately published 

and made available to interested parties and ent to all known manufacturers of such product who are cooperating in the admini tration 

of this Supplemental Code, any of whom may file, if he o de ires, 

revisions of his price lists and/ or discount sheets and/ or term of 

sale and payment, which shall become effective upon the date when 

the revi ed price list and/ or di count and/ or terms of sale and payment sheet first filed shall go into effect. 2 

(b) If and when Code Authority shall determine that in any 

group of the subdivision not now elling its product on the ba is 

of price lists and/ or discount sheets, with fixed terms of sale and 

payment, the distribution or marketing condition in the group are 

the same as, or similar to, the di tribution or marketing condition._ in 

!! group where the u e of price lists and/ or discount sheet and fixed 

terms of sale and payment is well recognized, and that a y tern of 

selling on net price lists or price Ii ts and discount sheets with fixed 

terms of sale and payment should be put into effect in such group, 

then each manufacturer of the product or products of uch group 

shall within twenty (20) days after notice of uch d termination file 

with ode uthority net price Ii t or price lists and di count she ts, 

including f .o.b. points and fixed term of ale and payment, ho wing 

his prices and di counts and terms of sale and payment, and such 

price Ii ts and/ or discount sheets and/ or terms of sale and payment 

shall be immediately published and ent to all known employer and 

may be thereafter re 1 ed in the manner hereinbef ore provided. Provided that Code Authority shall make no determination to place any 

2 See paragraph 2 (2) of order approving this Code. 
1~ 

product of the Subdivision (not now on a price-list basis) on a price 

list basis, as provided in this paragraph (b) or Article VIII,. unle~s 

two thirds of the employers ( cooperating in this Code as provided in 

Article V ( d)) who are at that time engaged in manufacturing such 

products shall affirmatively consent that such determination be made. 

( c) To the extent permitted by the Act, Code Authority shall have 

power, on its own initiative, or on the complaint of any em.ployer, to 

investigate any price and/ or terms of sale and payment for any product shown in any price list and/or discount and/ or terms of sale and 

payment sheet so filed with Code Authority by any employer. 

(d) No employer shall sell directly or indirectly by any means 

whatsoever any product of the subdivision covered by provisions 

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

sale a.nd payment different from those provided in his own current 

net price lists, or price lists and discount and/ or terms of sale and 

payment sheet. 

( e) No employer shall sell to or through any distributor who shall 

fail to agree to resell in accordance with Articles VII, VIII and IX 

of this Supplemental Code. 3 

ARTICLE IX-TR.ADE PRACTICES 

Unfair trade practices shall be deemed to be practices or acts 

which by subterfuge, concealment, misrepresentation, or by discrimination, result or tend to result in selling at other than published prices, or in deceiving or misleading purchasers, or in misrepresenting the products of competitors. 

Any deviation from the standards as set forth in this Article IX, 

or any amendments thereto, by any member of the Industry, either 

directly or indirectly through his agents, shall be considered as 

unfair method of competition and a violation of this Code. 

The following specific practices a.re examples of unfair methods 

of competition as defined above : 

RULE 1. No member of this ubdivision shall secretly offer or make 

to any customer, agent, fiduciary or-representative of customer any 

payment or allowance of a rebate, refund, commission, credit, unea.rned discount or excess allowance, whether in the form of money 

or otherwise, nor shall a member of the Industry secretly off er or 

extend to any customer any special service or privilege not extended 

to all customers of the same class, for the purpose of influencing 

a sale. 

R LE 2. No member of this sub di vision shall give, permit to be 

given, or directly offer to give anjrthing 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 principal of such agent~ or the represented party, 

without the knowledge of such employer, principal, or party. Commercial bribery provisions shall not be con trued to prohibit free and 

general di tribution of articles commonly used for adverti ing, except 

so far as such articles are actually used for commercial bribery as 

above defined. 

• See paragraph 2 (3) of ordei· approving this Code. 
13 

RULE 3. Untruthful adverti ing r pr enting, or marking any 

product, with intent to d ei r mi lead. 

RULE 4. Wrongfully enticino- away the employ es of competitors 

with the purpo and eff t of unduly hampering injuring, or embarra ing mpetitor in their bu in ·. othing in thi paragraph 

hall be o int rpret d as to in any manner restrict the right of any 

empl t k ernploym nt with any employer at an time. 

R LE 5. 1aking or au ·ino· or permittino- to be mad or publi bed 

an fal e untrue or d c ptive tatem nt by way of ad rti ment or 

oth rwi e on erninO' the arade, quality, quantity, capa ity ub tance, 

chara ter nature, origin, ize or preparation of any prod11ct of this 

~ubdivi ion ha ing the t n lency and capacity to mi lead or deceive 

pur ha er or prospe ti ve purcha ers. 

R LE 6. The defamation of competitor by falsely imputing to 

th m di ~honorable condu t, inability to perform contract , qu st10nable credit tanding, or by oth r false repre entation , or the false 

di paraO'ement of the grade or quality of their good with the tendency and capacity to mi lead or deceive pnrcha er or pro pective 

purcha er . RULE 7. Allowing on u ed equipm nt in connection with a sale 

of new equipment ·more than the scrap value of such u ed equipment 

or more than the price at which the employer expects to r ell such 

used equipment, whi he er i the greater, which allowance hall be 

reported to the Code Authority irrunediately. 

RULE . Inducing or attempting to induce the brea h of existing 

contracts between competitors and their customer or wrongfully 

interfering with or obstructing the performance of any such contractual duties or services. 

RULE 9. The ale or offer for sale of a new product a a reposse ed or rebuilt product and at a reduction below regular prevailino- publi hed new-product prices. 

RULE 10. Selling or qu ting for delivery at any points other than 

p&ified in publi heel price chedule without the addition of proper 

transportation and handling charges. 

R LE 11. Withholding from or in erting in an invoice an tatement which makes the invoice a fal e record wholly or in part, of 

the tran action repre ented on the face thereof. 

R LE 12. The makin of guarant es again t defect in material 

or, orkman hip for a lonaer period than one y ar from invoi~ date. 

RULE 13. The ale or offering for sale of any produ t of the Indu try under any form of auarantoo to the purcha er or pro p ctive 

purcha er again t either advance or prot ction again t the decline 

in the price of _aid product. Thi includ contracts for material 

which are to oo delivered over a p riod longer than hat required 

o manufacture. 

ARTICLE X- ALE FOR EXPORT 

The provi ion of thi upplemental Cod concetnino- pricing and 

marketing ( rticle VII III and IX) hall not appl to direct 

export ale of any pro luct. imilar exemption may be granted 

by the Code Authority of thi ubdi i ion a to ale of an product 

destined ultimately for export. Unle otherwi e determined by the 

Code Authority the term export hall include all hipments to all 
UNIVER S ITY OF FLOR IDA 

II I II IIIIII Ill Ill lllll lllll II IIII IIIIII Ill lllll II 111111111111111 

14 3 1262 08852 5802 

places without the several states of the United States and the District 

of Columbia; provided, however, that no shipment to any territory 

or possession of the United States shall be considered an export when 

any er~1ployer is engaged in the industry in such territory or 

possess10n. 

ARTICLE XI-MODIFICATION 

(a) As provided 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) Any amendments, additions, revisions, or supplements of this 

Supplemental Code, proposed by Code Authority, and approved by 

75 % of the employers who are cooperating in the administration of 

this Code, shall be in full force and effect upon approval by the 

Administrator. 

ARTICLE XII-MONOPOLIES 

Applicant imposes an l shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is not 

designed to promote monopoly, and shall not he so construed or 

applied as to oppress or eliminate small enterprises or discriminate 

against them, and is designed to effectuate the policy of the Act. 

ARTICLE XIII-EFFECTIVE D ATE 

Thi Supplemental Code shall become effective and binding on all 

persons engaged in the sub di vision on the eleventh day after its 

approval by the Administrator. 

Approved Code No. 347. Supplement No. 7. 

Registry No. 1399'--54. 

0