Approved ode No. 347-Supp!ement o. 31 Registry o. 1399-57 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE MACHINE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JULY 20, 1934 

WE 00 OUR PART 

I • 

' • • r 

UNITED STATES 

GOVERNl'tIBNT PRINTING OFFICE 

ASHINGTON : 1934 

For sale by lhe &..iperint.endent of Documents, Washington, D.C. - - • • • • • • Price 6 enta 
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, Mass.: 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S. C.: Chamber of Commerce Building. 

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

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 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 347-Supplement No. 81 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE MACHINE MANUFACTURING 

INDUSTRY 

As Approved on July 20, 1934 

ORDER 

APPROVI G SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE 

E~VELOPE MACIIINE MANUFACTURING 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 ode of Fair Competition for the Envelope Machine Manufacturing ubdivision of :Machinery and Allied Products Industry, 

and hearings having been duly held thereon and the annexed report 

on said upplemental Code containing findings with respect thereto, 

having been made and directed to the President: 

01'V, THEREFORE, on behalf of the President of the United 

State I, Huo-h 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 otherwi e; do hereby incorporate by reference said annexed report and do find that said Supplemental Code complies in 

all r pects with th pertinent provisions and will promote the policy 

and purp se,s of aid Title oi: said Act; and do hereby order that 

said upplemental ode of Fair ompetition be and it is hereby 

approved , ubje t to the condition that the provi ion of rticle IX, 

ti n ( 1) be and they hereby are stayed, pending the submi ion 

f a.ti factory evid nee concernino- distribution o.f the products of 

the 'ubclivi i n to the Admini,strator. 

HuaH . JoHN ON, 

Adm,ini t1·ator for Industrial Recovery. 

ppro""Val r ommen led: 

) AnTo_, Y\ . ~r nnAY 

Di i8ion 1d1ninistrator. 

WA. rr1_·0T N D .. 

July ,..,0 19v4. 

75-4G0

- 20- 113-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Supplemental Code of Fair Competition for the Envelope Machine Manufacturing Subdivision of the 

Machinery and Allied Products Industry, public hearing having 

been conducted thereon in vVashington, D.C., December 21, 1933, in 

accordance with the provisions of Title I of the National Industrial 

Recovery Act. Every person who filed a request for an appearance 

was freely heard in public and all statutory and regulatory requirements were complied with. 

GENERAL STATEMENT 

The Envelope Machine ~1anufacturers Association, being truly 

representative of this Subdivisron of the Machinery and Allied 

Products Industry, has elected to avail itself of the option of submitting a Supplemental Code of Fair Competition, as provided in 

Article I of the Basic Code for the Machinery and Allied Products 

Industry approved by you on the seventeenth day of ~1arch, 1934. 

This Subdivision represents a part of the capital goods industry, 

manufacturing and selling machinery and/ or parts thereof for use 

in the manufacture and/ or production of envelopes of all kinds. 

ECONOMIO EFFECT 

Employment in this Subdivision of the Industry, in 1929, of 

approximately 250 wage earners, declined to approximately 121 wage 

earners in 1933, or 52 per cent. Annual sales of this Subdivision of 

the Industry declined 60% from 1929 to 1932. The Subdivision 

anticipated a possible further dacline in 1933 sales. 

The average work week in October 1933 was 45.3 hours; with production remaining at present levels, an increase of approximately 

13 per cent in employment may be expected with the adoption of the 

40-hour week. 

The minimum hourly rates in the approved Basic Code consist of 

one differential for the South and three city population differentials 

for all other sections of the United States as follows: Over 50,000 

population, 40 cents per hour; 10,000-50,000 population, 38 cents per 

hour; 10,000 population and under, 36 cents per hour; South, 32 

cents per hour. 

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

Code provides that women engaged in substantially the same work as 

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

the minimum wage for women employees engaged in plant operations 

(2) 
3 

shall b n t le 7.5 per nt f th prop r rat for the locality 

in which mpl r l a pecifi cl· and hat the minin um in '·he outh 

hall b n t le than 3 cent p r hour. 

di tributi n howincr the number of factory work r rec ivincr 

la ifi d h url rate i n t availab! con equently the number of 

fact r. work r receiving 1 than the peci.fiecl minimum rat s 

pr Yid d in the B, ic od annot be e timated nor th ff e t hich 

the minimum rat will have on the pa rolls of thi Subdivi ion of 

the Inclu tr . 

RE l\f.E OF THE ~ PPLE1\IE T .AL CODE 

Arti le I states the purpo e of the Supplemental Code. 

Arti le II accurately defines specific term employed in thi upplemental o le. 

Article III. The labor provi ion of the Ba ic Code for th :Machiner and Allied Pro lucts Industry, as approved 1:Iarch 17, 1934, 

are incorporated by reference as the labor provi ions of this Supplemental ode. 

Article IV adopts the relevant portions of Article VI "Admini -

tration' and Article VIII, ":Modifications and Termination", of 

the Basic Code for the l\fachinery and Allied Products Industry as 

approved l\1arch 17, 1934. 

rticle V establishes a code authority consisting of three member . The Administrator may, in his discretion, appoint one additional member without vote and without expense to the Subdivision. 

T ogether with the applicable provisions of the Basic Code mechanism is provided for the adn1ini tration of this Supplemental Code. 

rticle I provides for an accounting system and methods of cost 

finding and/ or e timating. 

Article VII provides that during an emergency, the lowest reasonable co t of products of the Subdivi ion may be determined and that 

during aid emergency, it shall b an unfair trade practice to sell at 

1 than the determined reasonable cost. 

Article III sets forth the trade practices which ha e been especially de igned to off et unfair competition in this Subdivision. 

rticle IX pro,ides for the filing with the Code Authority by 

mployer in this ubdivision, of their di count period and terms 

f al as well as :for the filing of any modifications thereto. 

rticle X 1 fines export territory and provid s that filed discount 

period and t rm of ale are not applicabl to export hipment . 

i.rticl I contains the mandatory provi ion contained in e ti n 

10 (b) of the ct and also provides f r the ubmi si n of prop d 

am n 1m .n · to the uppl m ntal ode. Thi rticle al o ate that 

thi · upplem ntal ode hall terminate June 16, 193 . 

Articl ..1. II pro id for the withdrawal of this ub li vi i n from 

th juri dicti n f the Ba i od uth rity and for t.he continu l 

functionino- of thi ubdi,i ion as an individual indu try un ler its 

n ode. 

rti le III tipulatc that th re hall be no inequitable re tricti n and provide again t monopolies. 

Article XIV gi es the effecti e date of this Supplemental Code. 
4 

FINDINGS 

The Deputy Admini trator 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 matter: 

I find that: 

(a) Said Supplemental Code is well desio·ned to promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, includin°· removul of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof, 

and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

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

fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production ( except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unem1:loyment, 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 aforesaid 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 

monopolies or monopolistic practices. ( e) The Supplemental Code is not designed to and will not eiimjnate or oppress small enterprises and will not operate to discriminate against them. 

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

been deprived of the right to be heard prior to approval of said 

Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, on the condition that the provisions of Section 1, Article IX 

be stayed, as stated in the Order. 

Respectfully, 

JULY 20, 1934. 

HUGH 8. JOHNSON, 

Admwnistrator. 
ODE OF F IR CO 1PETITION FOR 

Hlr E I FA TURI GI DUSTRY; 

.A Dffl IO OF THE l\IACHI TERY .AND .ALLIED PRODUCTS I m STRY 

ARTICLE I-PuRPOSES 

To effectuate the policy of Title I of the ationat Industrial Reco er t, the following provisions are e tabli. hed as a Supplemental ode for the Envelope Iachine Ianufacturing Subdivision 

of the fachinery and Applied Products Industry, and together with 

the ode of Fair Competition of :Machinery and Allied Products 

Industry hall be the standard of fair compe.tition for this Subdivision and hall be binding on every employer therein. 

ARTICLE II-DEFINITIONS 

"Applicant" means the Envelope Machine Manufacturers Association, a trade organization, all members of which are engaged in 

the manufacture for sale of the products of the Envelope Machine 

Ianufacturing Subdivision of the Machinery and Allied Products 

Industry. 

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

as defined in its Code of Fair Competition as approved by -the President, and as uch definit-ion may from time to time be amended. 

' ubdivi ion " means this Envelope Machine Manufacturing Subdivi ion of the ifachinery and Allied Products Indu try as defined 

and t forth in Paragraph 11 of Article II of the Code of Fair 

mpetition of the :Machinery and Allied Products Indu try as 

follows: 

EnYelope Iachine 1anufacturing Subdivision means the manufacture for sale of machinery and/ or parts thereof for use in the 

manufa ture and/or production of envelopes of all kind including 

the erectino- d iITTling, servicino-, maintenance, and repair of such 

machinery and/ or parts thereof, and includes all those engaged in ·u ·h manufacture for ale." 

The foreo·oino- definition shall not permit the manufacture for 

c:-ale un l r thi uppl mental ode of electrical products in lud l 

within the cope of the Ele t ·ical ~Ianufacturing Indu try as d fine l 

in the ode of Fair ompetition for aid Indu try, exc pt h re 

1ch 1 trical products are sold as a part of the pro lucts of this 

ubdivi ion and are not sol as separate electrical produ t in comp tition with similar products includ cl within the cope £ the 

El ctri al 1fanufa turin Indu try as defined in the od of Fair 

mpetition for aid Indu try; provided, howev r, that any employer h reun 1 r ma manufacture and sell un ler this uppl mental 

ocl any spar ancl/ or r plac ment parts of any such el tri al 

produ ts f r u. e -with product defined hereuncler, hich were 

originally manufactured and sold by him. 

(5) 
6 

When carried on at the point of installation, the work of installing., ere_,ting, rebuilding and/ or servicing of the products of the Subdivision (including attachments, accessories and/ or replacement and r epair parts therefor, included within the definition of the Subdivision ) shall be subject to the provisions of this Supplemental Code, only when performed by the employer hereunder selling such prod- ucts or by a company affiliated therewith. 

" Code " means the Code of Fair Competition of the :Machinery 

and Allied Products Industry, as approved by the P resident, March 

17, 1934, and as from time to time amended. 

" P erson " means a natural person, a partnership, a corporation, 

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

or other entity. 

" E mployer " means any person engaged in the Subdivision, either 

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

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

by any such employer. 

"Apprentice" means an employee who is regularly engaged in 

learning a trade under a course of training designed to advance him 

systematically in the various operations of such trade to become a 

competently skilled mechanic. 

" The Act " means Title I of the National Industrial Recovery 

Act. 

" The President" means the President of the United States. " The Administr ator" 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 product classification within this Subdivision. 

" E xperimental Machine " means a machine of new design or type 

which requires mechanical experimentation in its development and 

which requires operation and testing to establish its ability to perform the functions for which it was designed and manufactured. 

ARTICLE III-EMPLOYMENT PROVISIONS 

The following articles of the code, viz : Article III, " Working 

Hours " ; Article IV, "Wages"; and Article V," General Labor Provisions " are hereby made a part of this Supplemental Code, with 

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

ARTrcLE IV-AnoPTioN OF OTHER PROVISIONS OF CooE 

The following Articles of the Code, viz : Article VI1 " Administration " and Article VIII, " Modifications and Termination " to 

the extent that they shall be applicable to this Supplemental dode 

as such, or as it may hereafter be administered as an autonomous 

Code, are hereby adopted and made a part of this Supplemental 

Code with the same effect as if they were written into this Supplemental Code. 
7 

AnTI LE V-AD~ II I Tn TION 

C 1 uth rity i h r by on titut d to admini ter and 

an 1 t fa ilitat the nforc m nt f the o e ancl of this 

UPI l n ntul 1 . urint"> th p ri 1 n t to x ed ixt da f 11 wing th 

dn e of hi upplem ntal od the ard of Dire tor of th p- pli ant hall c n titute a t rnporary ode Auth rity. The A lrni n1 rator in hi dj er tion rna.y appoint one ad litional memb r (without t and without xpen e to the Subdivi ion). 

The temporary ode uthority shall, within sixty day after this 

uppl m ntal ode b c mes effective, set up a perman nt Code Authority to sue eed the temporary Code Authority. uch permanent 

ode uthority hall be lected at a meeting call d for this purpose, 

to which all known employers in this Subdivision shall be invited 

on at least ten days' notice by registered mail, with the right to vote 

either in person or by proxy. 

The permanent Code Authority shall consist of three members, 

who shall be connected with employers within the Subdivision, no 

two of whom shall be representatives of the same employer. The 

Admini trator, in his discretion, may appoint one additional member 

(without vote and without expense to the Subdivision). 

Any employer in this Subdivision shall be eligible for membership in the Applicant. 

Any employer in the Subdivision shall be entitled to vote (subject 

to the pro vi ions of Section (a) of this Article V) at the election of, 

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

may participate in any endeavors of the Code Authority, by paying 

his pro rata share of the reasonable cost of creating and administering it as determined by the Code Authority. 

The members of the permanent Code Authority shall be elected 

in the following manner : 

(1) Employer in the Subdivision who are not members of the 

pplicant hall, if they so desire, be entitled to have one of their 

nwnber a member of the permanent Code Authority. Such desire 

shall be videnced by such employers at the meeting for the election 

of hep rmanent ode uthority. If the non-members of the Applicant d ire to elect one of th ir number to the permanent Code Authority this member shall be lected by a majority vote of such 

emplo ers pre nt in per on or by proxy each such employer to have 

one vote; and two members shall be elected from and by the emplo ers who are m mb rs of the Applicant, by a fifty-one per cent 

ot of uch mpl yer pre nt in per on or by I?roxy on the basis 

of one ote for h such mploy r, and one addit10nal vote for each 

u h mplo r f r ea h $150,000, or fra tion thereof, of sales of 

pr du of thi ubdi vision made by him in the calendar year 1932, 

a r ported by him to the ode Authori y. 

(2) In ca such repr sentati n is not d ired by the non-members 

of the ppli ant, as provided in the next preceding paragraph 

mark d (1), then one m mber hall be elected to the I? rmanent ode 

Authority by a majority vote of mployers pr e.nt 1n p r on or by 

proxy, a h mployer to have one v te; and two memb rs shall be 

elected from and by the mplo rs wh are m mbers of th Appli-
,. 8 

cant by a fifty-one per cent vote of such employers present in person 

or by proxy on the basis of one vote for each such employer, and 

one additional vote for each such employer for each $150,000, or 

fraction thereof, of sales of products of this Subdivision made by 

him in the calendar year 1932, as reported by him to the Code 

Authority. 

Any vacancy on the Code Authority, due to death, resignation, or 

because a member thereof has ceased to be connected with this Subdivision, shall be filled at a meeting of employers called by the Code 

Authority on at least ten days' notice by registered mail sent to all 

known employers in this Subdivision, and by a vote similar to the 

vote by which the retired member was originally selected. 

The Code Authority shall adopt rules and regulations for its 

procedure and employ such personnel as it may deem necessary. 

(b) 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 hearings 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. 

( c) Action by employers in any Subdivision meeting for the 

adoption of procedural rules, revisions, or additions to the Supplemental Code, or the transaction of other business of the Subdivision, 

shall be by vote of the employers in the Subdivision who are entitled 

to vote thereat, as provided in this Article V, and are present in 

person or by proxy duly executed and filed with the Code Authority. 

Any action taken at any meeting of employers shall be by a majority 

vote ( unless otherwise provided in this Supplemental Code) cast 

and computed in each of the two following methods: 

(1) By one vote for each employer; 

(2) By vote of em_ployers weighted on the basis of one vote :for 

each $150,000 or fract10n thereof of sales of products of this Subdivision made by him in the calendar year: of 1932, .as reported by him 

to the Code Authority. Each employer shall be entitled to at least 

one such vote. - ( d) With a view to keeping the President informed as to the 

observance or non-observance of the Code and of this Supplemental 

Code, and as to whether this Subdivision is taking appropriate steps 

to e:ff ectua te the declared policy of the Act, each em ploy er shall prepare and file with such person or organization as the Basic Code 

Authority or the Code Authority may designate and at such times 

and in uch manner as may by Basic Code Authority or Code Authority be prescribed ( to be held and used subject to the limitations of 

Article VI of the Code and this Article V of this Supplemental 

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

sales in units and dollars, orders received, unfilled orders, stocks on 

hand, inventories, both raw and finished, number of employees, wage 

rates, employees earnings and hours of work, and such other related 

data or information as the Basic Code Authority or Code Authority 

fllay from time to time require. 
9 

I n a ldition to inf or.mati n r quir d to be submitt d to Ba i Co<le 

Authorit l \.uthorit ther . hall b furni h d t Gov rn- m n ag n i uch ·tati tical inf rmation a -· tl e Pr i Jen may de m 

n r sar~ f r the puq ·e r ited in cti n 3 (a) of the ·t. The 

r cor I requir cl for u h purpo hall be reated and maintained 

in ·u ·h a way a t di lo a ur.ately the information r quir d from 

tim to time by overnm nt ao· n ies und r the provi ion f this 

ti n ( d) and of ction ( ) of rticle I of the Co le. ( e) , .:s:c pt as oth rwise provided in the Act, all individual -tati i , data and informati n of individual mplo r r , filed in accordance with the provi ion of the Code and of thi upplement al 

de hall be kept confidential; provided, however, that noth ing 

therein hall prev nt the publication of general summaries of such 

stati tical data and informati on. 

The statistics, data, and information relating to any one employer 

hall not be revealed to any other employer, or to anyone, except 

for the purpose of administering or facilitating the enforcement of 

the provisions of the Code or of this Supplen1ental Code. The Basic 

ode Authority, or the Code Authority, by its duly authorized representatives (who shall not be an employer or in the employ of any 

employer affected by the Code or this Supplemental Code) shall have 

access to any and all statistics, data and information that ma.y be 

:furnished in accordance with the provisions of the Code or of this 

Supplemental Code. 

( f) Aggregations of employers having a common interest and 

common problems may be grouped by Code Authority for administrative purposes into various groups or product classifications. 

In each group or product classification there may be a Group 

Code Authority approved or appointed by Code Authority. 

(g) If formal complaint is made to Code Authority that provision of the Code or of this Supplemental Code have been violated 

by any employer in this Subdivision, the Code Authority or the 

proper Group Code Authority may, to the extent permitted by the 

Act, cause such investigation or audit to be made as may be deemed 

nece sary. If such inve tigation is made by Group Code Authority, 

it shall report the results of such investigation or audit to Code 

Authority for action. 

(h) If any employer in this Subdivision js also an employer in any 

other industry, the provisions of this Supplemental Code, and the 

jurisdiction of Code Authority hereunder, shall apply to and affect 

only that part of the. business and product of such employer which 

is within this Subcli vision. 

ARTICLE VI-Acco NTI o AND COSTING 

The ode Authority may cau e to be formulated an accounting 

system and methods of co t finding and/ or estimatinO' capable of use 

by all mployers in the ubdivision. fter such ystem and methods 

have been formulated, full details concerning them hall be made 

available to all employ rs. Ther after all employer hall determine and/ or estimate co ts in accordance with the principles of such 

methods. 
10 

ARTICLE VII-SELLING BELow REASON ABLE CosT 

SECTION 1. When the Code Authority determines that an emergency exists in this Subdivision and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Supplemental Code, the 

Code Authority may cause to be determined the lowest reasonable 

cost of the products of this Subdivision, such determination to bei 

"ubject to such notice and hearing as the Administrator may require. 

The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of the emergencyi it shall be 

an unfair trade practice for any employer of the Subdivision to sell 

or offer to sell any products of the Subdivi ion for which the lowest 

reasona ble cost has been determined, at such prices or upon such 

t erms or conditions of sale that the buyer will pay le s therefor than 

the lowest reasonable cost of such product or products. 

"\iVhen it appears that conditions have changed, the Code Authority, 

upon its own initiative or upon the request of any interested party, 

shall cause the determination to be reviewed. 

SECTION 2. The foregoing Section (1) shall not apply to (a) 

dropped lines, or (b) seconds, or ( c) inventories which must be 

disposed of by any employer at any price and on any terms or conditions, but only if such employer, not less than two weeks before such 

proposed disposal, has filed with Code Authority a statement in 

writing setting forth the facts of, and reasons for, such proposed 

disposal and the price and terms and conditions of sale, and Code 

Authority has not, with the approval of the Administrator, before 

the termination of such two week period, in writing, disapproved 

the proposed disposal. Notice of such disposal, if not disapproved, 

shall be sent immediately to all employers manufacturing products 

of equivalent design, character, quality or specifications, who may 

sell such products at prices and on terms and conditions as favorable 

as those stipulated in the proposed disposal, when meeting the competition of such proposed disposal. 

SECTION 3. The foregoing Section (1) shall not apply to a sale 

made in order to meet competition on products manufactured outside the United States. For such disposal, any employer may sell 

at prices and on terms and conditions as favorable a,s those on the 

competing foreign product, but only if he has first reported to the 

Code Authority his intention so to sell, and the facts as to the c01npetition which justifies such action. 

ARTICLE VIII-TRADE PRACTICES 

1. No employer shall secretly pay or allow rebate, subsidy, refund, 

commi,ssion, credit, unearned discount, or excess allowance, whether 

in the form of money or otherwise, nor shall any employer in the 

Subdivision secretly offer 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. 

2. No employer shall publish advertising (whether printed, radio, 

display, or of any other nature) which i,s misleading or inaccurate 

in any material particular, nor shall any employer in any way mis-
11 

ARTI LE IX-Dis o T A o T En rn OF SALE 

1. o employer shall ell to or through any di tributor who does 

n t agr e to re ell in accordance with the pro, isions of rticle VII 

and rticle lll.1 

2. ash di counts allowed on invoices rendered to cu tamers or 

purcha ers by an employer shall not be granted after the expiration 

of the discount period or term established by such employer. Each 

employer shall file with Code Authority a written statement of his 

e tablished discount period or term which shall remain in effect until 

such employer shall file, in writing, with Code Authority a proposal 

to modify his discount period or term, which modification shall become effective on the date of such filing. 

3. The provisions of this Supplemental Code concerning pricing, 

marketing and costs shall not apply to experimental machines, contracted for at a fixed price. 

ARTICLE X--SALES FOR EXPORT 

The provisions o:f Articles VII and IX of this Supplemental Code 

are not to apply to direct export sales of any product or to sales of 

any product destined ultimately for export. The term "export" 

shall include 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 possession of the United States shall 

be con iclc>red an export when any employer is engaged in the Subdivi ion · uch territory or posse sion. 

ARTICLE XI-MODIFICATIONS AND TERMINATION 

(a) As provided by Section 10 (b) o:f the Act, the Pre ident may 

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

or r o-ulation issued under Title I of the Act. 

(b) Any amendments, additions revisions, or supplem nts of this 

upplem ntal ode, proposed by ode Authority, and appro ed by 

a 66% % vote of the employers ( in person or by proxy) on the ba is 

of one vote for each employ r and one additional ote for each emplo r for ach 150 000. or fraction thereof, of ales of products of 

hi ubdivision made by him in the alendar year 1932 as reported by 

him to ode uthority, hull be in full force and effect upon approval 

by th President. 

Thi upplemental Code shall t rminate June 16, 1935, or on such 

date prior thereto hen the Act hall be rep aled, or the Pre ident 

1 See paragraph 2 of order approving this Code. 
12 

shall, by proclamation, or the Congress shall, by joint resolution, 

direct that the emergency recognized by Section I of the Act has 

ended. 

ARTICLE XII-W ITHDRA w AL 

As is provided by Article IX of the Code, upon 30 days' notice to 

Basic Code Authority and to the Administrator, this Subdivision 

may, upon the 662/3% votB of the employers (in person or by proxy) 

with.in this Subdivision, on the basis of one vote for each employer 

and one additional vote for each employer for each $150,000. or 

fraction thereof, of sales of products of this Subdivi ion made by 

him in the calendar year 1932 as reported by him to Code Authority, 

withdraw fro~n the jurisdiction of Basic Code Authority. Thereafter, this Supplemental Code, together with the provisions of the 

Code as may be applicable to this Subdivision, shall become and be 

the code §o-overning this Subdivision, and the Code Authority, shall, 

for this ubr:livision, become and be the only Code Authority and 

shall perform all the functions with respect thereto. 

ARTICLE XIII-1\lloNOPOLIES 

Applicant. imposes and shall impose no inequitable restrictions on 

membership therein. This Supplemental Code presented by it is 

not designed to promote monopoly, and shall not be 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 XIV-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

persons engaged in the Subdivision on the eleventh day after its 

approval by the President. 

Approved Code No. 347-Supplement No. 31. 

Registry No. 1399-57. 

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