Approved Code No. 347-Supplement No. 22 Registry No. 1342-01 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

CONVEYOR AND MATERIAL 

PREPARATION EQUI[PMENT 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

' " .. 

AS APPROVED ON JUNE 19, 1934 

WE DO OUR PART 

' . 

r - - - -

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. • • - • • Price 5 cents 
This publication is for sale by the Supetintendent of Documents, Government 

Printiug Office, Washington, D.C., and by •c1i trict offices of the Bureau or 

Foreign and Dom stic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Ma . : 1 01 Custombou . Buffalo, N.Y.: Chamber of ommerce Building. 

Charle. ton, S .. : Chamber of Commerce Building. 

Chicago, Ill.: uite 1706, 201 North W Us Street. 

Cleveland, Ohio: Chamber of Commerce. 

Da lla·, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 First National Bank Building. 

Hou to n, Tex.: hamber of Commerce Building. 

India napolis, Ind.: Chamber of Commerce Building. 

J ack ·onville, Fla.: 'bamber of Commer ce Building. 

Kansas ity, 1\10.: 1028 Bnltimo1·e Av nue. 

Los Ano-eles, alif.: 1163 South Broadway. 

Loni. ville, K y .: 408 F deral Building. 

Memr hi , Tenn. : 229 Federal Building. 

Minn ar olis, l\Iinn.: 213 F ed ral Buildino-. ew Orleans, La. : Room 225-A, Custornbou e. 

New York, N.Y.: 734 ustombou ·e. 

~orfolk, Va.: 406 East Plume tree t. 

Philar1 lpbia, Pa. : 422 Commercial Trust Building. 

PitLburo-11, Pa. : bamber of omrnerce Building. 

Portland, Oreg.: 215 New P o t Office Building. 

St. Loui., Mo.: G06 Oliv Str et. 

San Fran ·i. o, alif. : 310 ustombou e. Seattl , Wa b.: 809 F d ral Offi ·e Buil(ling. 
Approved Code No. 347-Supplement No. 22 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

F OR THE 

CONVEY·OR AND MATERIAL PRE PARA T I ON 

EQUIPMENT MANTI:F ACTURING INDUSTRY 

As Approved on J une 19, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CONVEYOR AND 

MATERIAL PREPARATION EQIDPMENT MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINER~ 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 Conveyor and Material 

P reparation Equipment Manufacturing Subdivision 0£ Machinery 

and Allied Products I ndustry, and hearings having been duly held 

th ereon and the annexed report on said Supplemental Code, cont aining findings with respect thereto, having been made and directed 

t o the P resident: 

NOvV, T H EREFORE, on behalf of the President of the United 

States, I, H ugh . Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, includin; 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 

respect with t he pertinent provisions and will promote the policy 

and purposes of said Title o:f said Act; and do hereby order that 

said Supplemental Code o:f Fair Competition be and it is hereby 

approved subject to the :following conditions: 

(1) T h at the provisions of Article VI II~ Section (b) in ofar as 

they prescribe a 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 lists, as originally filed and/ or 

revised price lists or revised terms and condition o:f sal , be and 

they hereby are stayed pending my further order. 

(2) P rovided, however, that the application of the provision o:f 

Article IX, Section (2) be, and it hereby is staye 1 for a I riocl of 

sixty (60) day~ or uch additional period as I , by my further 

68648°-657- 120-34 (1 ) 
2 

order, may direct, in order that the Code Authority may submit 

a suitable plan for determining trade-in allowance . . 

( 3) That the provi ion of Article IX, Section ( 15), be and they 

hereby are stayed pending the submission of ~atisfactory evidence 

concerning distribution of the products of the ubdivi ion to the 

Administrator. 

Huan . JoHNso~, 

Adminri trator for l ndu tr-i:al R ecovery. -- Approval recommended : 

BARTON w. MURRAY, 

Acting Division Ad1ni:nistrator. 

WASIDNGTON, D.C., 

June 19, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White H mtse. 

Srn: This is a report on the Supplemental Code of Fair Competition for the Conveyor and Material Preparation Equipment Manufacturing Subdivision of Machinery and Allied Products Industry, 

a public hearing on which was held in Washington, D.C., on November 24, 1933, and reconvened on December 21, 1933. The hearings were conducted in full accordance with the provi ·ions of Title 

I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Conveyor and Material Preparation Equipment Manufacturing Subdivision, being truly repre entative 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 p~ragraph of Article 

I in 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 designing, manufacturing, and assembling for sale, and installing when required, of equipment (stationary or portable), for handling, tran porting and elevating 

mechanically, materials and articles ( either packaged or loose), and 

a.lso equipment for. cleaning, preparing and processing bulk materials while being mechanically handled ( e.xc.epting, however, machinery and/or equipment wherein a conveyor or material preparation mechanism is an integral part thereof, and one or more proces es 

or function are performed within such machinery and/ or equipment for the processing of food products or seeds) , and include all 

persons so engaged. 

In connection with the designing, manufacturing, assembling, and 

insfaJling of such equipment, the Subdivision uses only the following 

mechanisms, or one or more of them : chains, belts and cables with 

or without drag scrapers; cleats, trolleys and buckets; gravity chute ; 

pow r driven and gravity rollers, wheels and balls ; belt idler ; screw 

conveyors; screens and mechanical cleaning devices; and mechanisms and supports required for their operation. The Subdivi ion 

shall include the designing, manufacturing, assembling and installing of power driven and gravity roller and wheels, belt idler , screw 

conveyor , screen and mechanical cleaning devices; provided that it 

shall not include the designing and/or manufacturino· for sale of 

other mechanisms, although such mechanisms are used as parts of 

the equipment designed, manufactured and assembled by it for sale. 

(3) 
4 

ECONOMIC EFFECT 

Annual sales declined from $53,000,000 in 1929 to $14,500,000 in 

1932, a decrease of 72.6 per cent. No estimate was made by the 

~ubdivi ion of the value of sales for the year 1933, but the evenmonth average of sales indicates that sales in 1933· will be approximately the ame a the 1932 level. 

E timates of approximate employm nt for the ntir ubdh i ion 

c:ubmitted by the Trade A ociation, indicate employment has declined to lightly le · than one-half the 1929 level. In 1929, 10,300 

wage earner . were r ported, an l 4,900 in 1933, repre nting a decrease 

of 52.4 per cent. 

Average hours per week ,ver reported to be 49.9 in Jun , 1929; 

.,.1 in June, 1933; and 33.2 in October, 1933. In O tob r 1933, the 

averao-e hour were 33.5 per cent le s than the June 1929 av rage, 

and 1.5 per ent greater than the June, 1933 a, rage. 

The effect of the 40-hour provi ion with procluction at more normal 

level may be estimated on a ba i of total man-hour 1 er w ;Jr in 

1931 divided by the number of hour I re crib l in the Code. After· 

J 929, man-hour declined teaclily from 513,97 t a minimum of 

147,673 in 1933 (fir t six month ) or approximately 70 per cent. 

If it i a urned that th 244,120 man-hour for 1931 are repre ntative of the v lmne of production for that year, and a r a onable 

measure f n1an-hour requirements in a mar n rmal perio l the 

adoption of the 40-hour week would require a force of approximately 

6,103 employee , or 59.3 per cent of the 1929 working level. 

However con idering all €mploye s of th ubdivi ion would not 

work the full 40-hour week, the averag work week would be 

·horter; with 36 a ·urned e:ffecti ve hour , and emplo ment corr pon lingly o-reat r 6,781 worker. would b required to pr du e 

the 1931 volume. 

The minimum wao- prov1 ions pr po l for h ubdivi i n 

which are opera tin · un l r the ode of th Ia hin ry antl Alli d 

Produ ts Indu try are ba. d on a flat minimum h urly rat f 32 

nt per hour for the nth and th f llowing it I I ulati n 

differ ntial f r all other ction · of th nit tat ~ 

l'PLE)I 'XT~\L ' DE 

th 

r th 

th ub1 r - r , and 
5 

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

time amended. 

Article IV provides for the adoption of Article II, VI, VIII, 

and IX of the ode of Fair ompetition for the Machinery and 

Allied Products Industry, in accordance with the conditions of this 

Article governing their adoption. 

Articl V provides for the establi hment of a Code Authority 

and define its powers and duties. 

Article VI provides for an accounting sy ·tern and methods of 

cost finding and/ or estimating. 

Article VII provides that no products of the Subdivision shall 

be sold or offered for ale below a reasonable cost. 

Article VIII provides for method of setting up, revising and 

filling price lists and discount sheets and term. of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Article X states that no provi ions of this Supplemental Code relating to pricing and marketing shall apply to export sales. 

Article XI provides that this Supplemental Code and all the 

provision thereof a.re expressly made subject to the right of the 

President, in accordance with Sub e tion (b) of Section 10 of the 

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

license, rule or regulation is ued under aid Act. Provision is aLo 

made that modifications may be submitted by the Co le Authority 

to the President for approval. 

Article XII. No provision of this Supplemental Code shall be o 

applied as to permit monopolies, or monopolistic practices or to 

eliminate, oppress, or discriminate against_ small enterprises. 

Article XIII states the effective dat of thi Supplemental Code.· 

FINDINGS 

The A istant Deputy Admini trator in hi 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 designed t promote the policies and purpose of Title I of the National Industrial Recovery Act, 

including removal of obstructions to the free flow of interstate and 

foreign commerce which tend to dimini h the amount thereof and 

will provide for the general welfare by promoting the organization 

of industry for the purpo e of cooperative action among the trade 

groups, by inducing and maintaining united action of labor and management under adequate governmental auctions and upervi ion, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the pre ent productive capacity of industries, 

by a voiding undue restriction of production ( except as may be temporarily required), by increasing the con umption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwi e rehabilitating industry. (b) Said Subdivision normally employ not more than 50,000 

employee ; and is not ·lassified by me a a major in lustry. 

( c) The Supplemental Code a · approved complies in all respects 

with the pertinent provisions of aid Title of said Act, including 
6 

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

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

applicant association is an indu trial association truly repre entative 

of the afore aid Sub di vi ion; and that said a sociation imposes 

no jnequitable restriction on admi sion to m mbcrship th rein. 

( d) The Supplemental Code is not designed to and will not permit monopolie~ or m.onopolistic practice . 

( e) The Supplemental Code i not designed to and will not eliminate or oppre s mall enterpri es and will not op rate to discriminate against them. 

( f) Tho e engaged in other t ps of the economic proce have 

not been deprived of the right to be heard I rior to appro 1al of 

said Supr lem ntal Cod . For th r a on , ther for , I have appr d this Suppl m ntal 

Cocle, provided that certain provision relating to I rice publi ation-., 

the application of the provisions of Article IX, ection (2), and 

the provision of Article IX, Section ( 15) are tayed as tated in 

the Order. 

Re pectfully, 

Jui E 19, 1934. 

I-IuoH S. JoHN o , Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE CONVEYOR AND MATERIAL PREPARATION 

EQUIPMENT MANUFACTURING INDUSTRY 

A DIVI ION OF THE MACHINERY A D ALLIED PRODUCT I ~DU TRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National In lustrial 

Recovery Act, the following provi ions are establi heel a a Supplemental Code of Fair Competition for the Conveyor and Material 

Preparation Equipment Manufacturing Subclivi ion of the Machinery and Allied Products Industry, and, together with the Code of 

Fair Competition of Nfachinery and Allied Product 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-DEFINITIONS 

"Indu try ' mean the Machinery and Allied Product · In lu try, 

as defined in it Code of Fair Competition as approved by the Pre - jdent1 March 17, 1934, and as such definition may from time to time 

be amended. 

"Subdivision' means this Con-, eyor and :Material Preparation 

Equipment J\1anufacturing Subclivi ion of the Machinery and Al- lied Products Industry as defined and . et forth in paragraph eight 

( ) of Article II of the Code of Fair Competition of the :Machinery 

and Allied Product Industry as follow : 

Conveyor and 1\!Iaterial Preparation Equipment Manufacturino· 

Subdivi ion means the designing, manufacturing, and a ·sembling 

for sal , and installing when required, of equipment (stationary or 

portable) , for handling, tran porting, and elevating mechanically, 

material an l articles ( either packaged or loose), and also for cleaning, preparing and processing bnlk materials while being mechanically handled ( excepting, however, machinery and/ or equipment 

wherein a conveyor or material preparation mechani m is an integral part thereof, and one or more processes or function ar performed within uch machinery and/or equipment for the proce sing 

of food products or ·eels) and include all person so engaged. 

'In connection with the designing, manufacturing, as embling, 

and installing of . uch equipment, the Subdivision uses only the 

following mechani ms, or one or more of them: chain , b lt and 

cables with or without drag scrapers, cleats, trolleys and buckets; 

gravity chute ; power driven and gravity rollers; wheels and balls; 

belt idlers; screw conveyors; screen and mechanical cleaning devices; and mechanisms and upports required for their operation. 

The Subdivi ion shall inclu le the de igning, manufacturing, as6 64 °-657-120--34-2 (7) 
8 

sembling and in talling of power driven and gravity rollers and 

wheels, belt idler , rew conveyors, ·ere ns and mechani al cleaning 

devices; provid d that it hall not include the de iO'ninO' and/or manufacturing for ale of other me hani m , although such mechani ms 

ar u ed as I arts of the equipment de igned, manufa tured an l 

as embl d by it for sale." 

' Code " mean th de f Fair C mp titi n of the "oia hin ry 

and Allied Product. In lu try, a approY c1 by th Pr ident and a 

from time to time am n led. 

"Per.'on" means a natural per · n, a partner ·hip a c rp rati n an 

a.·. oriation, a tru t. a tru tee, a tru tee in bankrupt y, a rec iv r r 

other entity. 

' Emr 1 yer" m€ an.· any p r on engaged in this ubdiYi 'i n f the 

Indn try, either n hi own behalf or a an employ r f labor. 

Employee" m an any one ,,..ho j mployed in the ub livi ion 

by any uch employer. 

The ct:· mean Title I of the National Indu trial Rec v ry 

Act. 

' The Pre. ident ' mean the Pre id nt of th nit l State . ' ..... dmini trator" mean the Administrator for. Inclu trial R - COYery. 

' Ba ic Cod \..uthority " means th de Authority for the l\Iachiner:v and ~ llie l Pro ·luct Indu try a on. titut l b. ' th 

' Coe.le Authority'' mean the Cod uthorit on titut cl f r thi 

ubdiYision as proYidecl by the Cocl and l y thi 

Cod. 

' -rroup o l . \..nthority" mean th C cl ..l nth rit 

group or Ir clnct cla ification wi.thjn thi S ub livi ion 

under the authority of Article V of thi Suppl m ntal 

ARTICLE III- E::.\IPLOY:~IE..i::rT 

Tl following ..... rticl s of th ode, Yiz: r i ·le III. 

Hom~ · _· ; ~~rticlc 1, , '' '\Yag · and Arti ·l 

roY1s10n are h r by ma le a part f thi · nppl n ental ode, 

"ith the sam ffe t n , if they ,,.. re written int thi.· ~ tq pl m '11 al 

Code. 

F ConE 

Thr following \.r i ·l s ( f th hnition, ', 

.AI Tl 'LE Y- AI _ II. I. 1R.\:Tl() . ~ 

a Th p rmnn nt C< d • 11thori y t > ad11 ini. r. lll n-i 

to fn ·ilitat tlw nfor ·cm ' 1t f the 'ot1 :11111 thi. j 'uppl m 

Cod, her t ifor ltd,· ·on tit11t' l in a· ·nrdnn ·' \Yith .. rlid 
9 

Section (g) of the Code, shall be the Co le Authority o:£ thi~ Subdivision until it succe sors are duly el cted and qualified 111 accordance with the procedural rules and r o-ulation · of thi Subdivision ( duly adopted in accordanc with Arti le VI, e tion (g) of 

the Code) and with the following Se tion of this Articl V. ,vhen 

its succe or shal.l have been duly el ct cl and qualifie l, they hall 

constitute the permanent Code Auth rity. 

(b) Each elective member of the Code Authority hall be an 

employer, an ex cutiYc officer of or a partn r in, an employer 

entitled to participate in the activiti s of the Subdivision as described in Article V, S ction (f) of this Supr lemental Code. SucJ1 

number, not f ewer than five ( 5) and not more than nine (9) m mbers, shall be elected as may b determined at a meeting of the Sub- . divi ·ion, and the Administrator, in hj di ·cretion, may appoint one 

( 1) additional member ( without vot and without expense to the 

Subdivi ion). Of these mem.bers to be elected, four shall be designated and voted upon as 

Chairman 

Vice-Chairman 

Secretary 

Treasurer 

If, as a result of aid lection, any Group, a· provided for by this 

Articl V, Section ( ) , doe not hav on the Co le Authority on 

repre entative of the mployer compri ing ~uch Group, the employer of uch Group may elect an additional 1nemb~r of the Cod Authority~ _who shall have the qualification hereinbefore rccitecl. 

( c) In order that the Code Authority hall at all time be truly 

repre entative of the Subdivision an 1 in ther respect comply with 

the provi ions of the Act, the Admini -trator may provide uch hearjugs as he may deem proper; and thereafter if he hall find that the 

Code ... uthority is not truly repre entative or does not in other 

re ·pects comply with the provision.~ of the Act, may require a modification of method of selection of Code Authority: or any Group Code 

Authority. 

( d) Action by the Subdivi ion at any meeting for th" transaction 

of bu ine s, adoption of procedural rules and regulations, ub-·eqnent 

election of Code Authority, and amendment of thi · Supplemental 

Code, shall be by vote of the employer in the Subdivi ·ion, pre ·ent in 

person or by proxy, wherein each ·uch employer shall have one Yot ; 

provided, however, that on any qnestion exc pt the election of Cocle 

Authority, any uch employer shall have the right to call for rrn 

additional vot and to hn.Ye the . ume yoted upon by each uch employer weighted on the ba is of one vote for each $500,000.00 of 

sales within the Subdivision ma le by . nch employer in the t o preceding calendar yea rs, each such employer, holreYer, b ing entitled to 

one vote, and in eYery u h case action on the que tion . ha.ll be by 

both such method of Yoting. 

( e) For admini trative purpo e , employer . hall be grouped by 

Code Authority. The purpo e of such groupinO' . hall be to brinointo working a sociation employers haYing common intere t ancl 

problem , based on products and/ or o·eographical location. Each 

Group hall elect from the employers of such Group a Group Code 

Authority, and may adopt ·uch rules for the conduct of th bu iness 
10 

of the Group as are not inconsistent with the provi ions 0£ this 

Supplemental Code and the Code; provided, however, that t~1e provisions of Article VI of the Basic Code shall control the mak1na of all 

examinations or audit and the u e to be made of information o 

obtain d with re pect to any employer. 

Except a othenvi e provi led in thi upplem ntal ode, a Group 

Code Auth rity shall have power to hear all matters pertaining to 

the proYisions of thi Supplemental Code which may be ubmitted 

to it by any employer in it Group, having r lat.ion to th employers 

Jn aid Group, or any of them, and to that en l may, to th extent p rmitt d by the ct an l the Code, inve tigate and a c rtain the fa t 

through such examination or audit a u ·h Group o le Authority 

may deem ne e · ary; provided, however, that nothing in thi · Article 

hall preclu le th Code Authority from taking action eith r upon 

complaint of an employer or upon it own initiative with r pect 

to any matter , except those pertaining to r elation betwe n employer 

and employee . 

Any de ·i ion of the Group Code Authority hall b final, unl .· · 

appeal i taken to the Cod Authority or such le ·i. ion inv lv · 

matt r , requiring to be reporte l to the Ba ic de uth rity in 

, hich ca e all p rtinent information, paper and data in th po e -

sion of the Gron1 Cod Authority shall be turned over by it to the 

Cod \.uthority, and the Code Authority hall pa n th merit 

of the case and mak final deci ion or re1 rt th reon to th Ba i 

Co le Authority. 

(£) It being found neces ·ary, in order t , upport th admini tration of thi Supplem ntal Cod and to maintain the ·tan lar l of 

fair omp tition e tabli hed by this Suppl men al cl and t ffectuate th policy of the Act, th Code Auth rity i · auth riz 1 

subject to the approval of the Aclmini trat r: 

(1) To incur uch rea onable obligation a. ar n ar. an 1 

proper for the f regoina I nrpo and to meet uch obligation nt 

of fun ls which may be rai el a her inafter provi 1 cl and whi h 

shall be hell in tru ·t for th purpo e.· f thi , nppl m ntal o 1 . (2) T ·nbmit to the Admini trator f r hi ar pr vaL . nbj t t 

such n ti and opportunity to be h ar 1 a he nia:v l m ne · . ar , . 

(1) an it mized bu · t of it timat l xp n. , f r th for g inopurp . · and (2) an quit.a bl ba i ur n whi h Ii> fnncl · n .-.·ary 

t ·upport uch bu lrr t hall b c ntri nte l by mcmb r~ of th 

nb 1i, i i n. · 

(3) After ·u ·h bu lget an l ba i of contribution haY 

pr v cl b th dmini trat r, to cl t ri 1inc aml .- ·nr 

contribnti n a. abov , ct for h b all ·n ·h 11111 )y 'I': of th n llivi ·ion an l to that en l, if n · ·ar 1 • to inf-titull' l O'al I ro(' 1 di11g. th r,f >r in iL "n nam. 

nly m ml r. · of th nb 1ivisi n ·on 1 Iying with this 

m ntal ocl , n l ·ontribu ing t th _· p n. 

a pro ic.1 1 in ' ti n 1 h re f hall b 

in th . · 1 ct i n ,£ th m n b r::-, )f th oc1 

the lJ n fit f it: voluntar ' a tivi i . 

r in.-i crnia of h a ti 11al I 
11 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority hall cause to be formulated an accounting 

system and methods of cost finding and/ or e tirnating capable o:f 

use by all emr loyers of the Subdivision. After such system and 

methods have been formulated, full detail concerning them shall 

be made available to all e1nployers. Thereafter all employer shall 

determine and/ or e timate co t in accordance with the principles 

of uch method . 

ARTICLE VII-SELLIN~ BELOW REASON ABLE CosT 

(a) VVhen the Code Authority has r ea on to believe that an 

emergency exists as to any product or products of th Subdivision, 

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

render ineffective or seriously endanger the purpo es and the maintenance of the provisions of this Code, the Code Authority may 

cause an investigation of costs and pricing to be made by an impartial agency in order to determine the exi tence of the emergency 

and may cause to be determined the lowest reasonable cost of any 

product or products of this Subdivision, such determination to be 

subject to such notice and hearing as the Administrator may require. 

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

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

or offer to sell any products of the Subdivision for which the lowe t 

reasonable cost has been determined at such prices or upon such 

terms or conditions of sale that the buyer will pay le ·1t, therefor 

than the lowest reasonable cost of such products. 

When it appears that conditions have changed, the Code Authority, upon its own initiative or upon the reque t of any interested 

party, shall cause the determination to be reviewed. 

(b) The foregoing Section (a) shall not apply to (a) dropped 

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

into cash to meet emergency rieeds, al,l of which may he disposed 

of by any employer at any price and on any terms or conditions 

during a period not to exceed sixty ( 60) days, but only if · such 

employer not less than three weeks before such proposed di posal, 

has filed with Code Authority a statement in writing setting forth 

the facts of, and reasons -for such proposed di po al, and the price 

and the terms and conditions of sale, and Code Authority ha not, 

before the termination of such three week period, in writing, disapproved the proposed dispo al. Notice of such di posal, if not disapproved, shall be sent immediately to all employers manufacturing 

products of equivalent de ign, character, quality or p-ecificatio11s, 

and participating in this Supplemental Code as described in Article 

V, Section (c), who may eU such products within said sixty (60) 

day p~riod at prices and on terms and conditions as favorable as 

those stipu,lated in the propo eel disp-0sal. 

( c) When prices of competing products manufactured outside 

the United States are lower than the established lowest reasonable 

cost, any employer may sell at prices and on terms and conditions 

as favorable as those of the competing foreign product, but only if 
12 

such employer has filed with Code Authority, a statement in writing setting forth the fact. of, and rea ons for, such propo ed sale 

and the prices to be charged and the terms and conditions of sale, 

and Code Authority has not, within one week, disapproved such 

proposed ale. 

ARTICLE VIII-:METHODS OF Pnr ING AND TERM · OF SALE AND 

PAYMENT 

(a) Each employer shall within thirty (30) day after approval 

of this Supplemental Code, file witih the proper Group Code Au -

thority ( or with Co le Authority if there i n Group Code Authority having jurisdiction), a statement showing hi current method 

of pricing an l term of ale and payment, for uch f hi Ir du t · 

ns are within the scope of this Subdivi ion. uch tatem nt hall 

conform to the requirement of the proper Gr up Cod uthority 

as to details of information and number of ·opie ther f tog ther 

with opies of price list , di count heet , catalogs, and oth r paper 

a may be ne e ary to set forth su h current m thocl f pri ina and 

term of ale and payment for the variou produ , which copie 

shall, by the aid Group Code Authority, be immediat ly di. tributed 

among the employers of thi Subdivi ion who are entitled to participate in the activities of uch Subdivi ion and who de i n, manufactur , as emble and in tall like produ ts. 

(b) Revi ions of the method of pricing and term of al and 

payment may be filed, in like mannei·, from time to tirn th r aft r 

with the proper Group Co le Authority by any m1 lo. ' r, ea h 

u h revi ion to become eff ctiv not later than ten ( 1 ) lay. fr01n 

filing, and copie ther of, with upporting price Ii t , an l oth r 

clata, with notic of the eff ctive date, immediate!_ hall b ent to 

all th employer and be available to buy r a ab Ye provi<l d.

1 

( c) No empl yer hall sell directly or indirect! b. an m a.n 

what oev r, any produ t of thi ub li i i n, at a 1 w r I ri · , r n 

more favorabl t rm of ale and I aym nt, than th . pr Yicle l in 

hi own curr nt method of pricing ·an 1 t rm of al and payment 

a cov red in hi tatement filed in a or lan with th pr i i n 

f thir- rti le , III xcept in th a an l under th ' n liti n 

pro i led for in Arti 1 II ction (b) and ( c). 

ARTI LE IX-TRADE PRA Tl E 

1 , e parugrapb 2 ( 1 of onl Pr nppru, ing t h i~ 'd . 
13 

shall th~reafter be used by all e1npioyers .of that Group in contracting with purchasers for the furni hing of equipment lesigned, manufactured and assembled by such employers. Provided, ho·wever, 

that in connection with Public V\T oTks, purchase orders or contracts 

executed by the proper Government uthorities may be used. 

(2) No employer sh.all take used equiprn.ent in trade for more than 

its scrap value, on the purchase price of new equipm.ent, or make 

allowances -or grant er.edit-, directly or ~ndirectly, for used quip1nent; 

proviid.ed, however, that this provision ·h.all not be applicable to any 

employ~r of any Group, after the ad.option by Group Code Authority 

of such Group with the approval of the Administrator, of a standard 

method of .apprai.•al for such used equipment; and provided further 

that ,ea,_-ch employer of such Group 1nay make allowances for u ed 

-equip1n-ent so traded in, no gre.ater than shall be pre crib.eel by .. uch 

standard method .of a pprais-al. 2 

(3) In quotincr on any business, the original pricB submitted shall 

not be altered, unless a change in specifications or requirements _shall 

have been made by or .at the request of prospeetive purchaser affecting thB cost, or unless, prior to acceptance by the purchaser, a revised 

n1ethod of pricino- has boon filed with the proper Group Code 

Authority and become effective, in which event the original quotations 

shall be revised. Such revised quotation shall be in accordance 

wi-th the employer's current m.ethod of pri-eing and terms of sale 

and payinent. . ( 4) Ch..arg-es for services of any em.ploy.ee engaged to supervise the 

erection of any products of this Subdivision, including his traveling 

expenses, .shall not be absorbed by the e:mpl.oyer. 

( 5) No equipment shall be furni hed to a customer for trial purposes with.out .a definite .order and 3;d:vanee agr.eement tbat if the 

equipn1ent be eet.urned, the -customet~ will pa-y transportation and 

eost of reconditioning. This proYision shall not -apply to equipment 

in process of development, or to e-quipment t o he used in a manner 

novel to the Subdivision, until after one machine is in uccessful 

commercial operation. 

(6) No employer of the Subdivision shall publish advertising 

( whether printed, radio, di play or of any other nature), which is 

misleading or inacc-urate in any material particu1ar, nor shall any 

1en1pfoyer in any way nusrepre ent -any goods (including but without 

limitation its use, tr.ad.cm.ark, gra-de, quality, quantity origin, size, 

sub tane-e, -character, nature, finish, material, content or prepaTation) 

-0r credit terms, value·, policie , services, or the nature or form of the 

busirn~ s conducted . 

. ("T) No runploY'er ·:5hal1 make or -agree to n1ake any se-c~:et paymertt 

or rebate, credit or discount, in money or otherwise, with intent to 

influence any sale. 

(8) No employer shall pay or promise to pay any money or other 

valuabiJ.e thing to any agent, fi.ducllry, or other representative of a 

p.ur-chaser, lvith cu· without the knowledge of his principal, for the 

purpose of influencing any sale; provi l-ed that no provi. ion of this 

Supplem.-e.11ta.l Code --shall be eonstrued to prohibit free and general 

dist.ribution of article comm.only used for advertising, except insofar 

2 See paragra11h 2 (2) of order approving tbis Code. 
14 

as such articles are actually used for commercial bribery as hereinabove defined. 

(9) No employer hall fal ely adverti e, represent, or mark any 

product with intent to deceive or mi lead prosr ective pur haser . (10) No employer shall make false claims with reo-ard to or 

deliberately mi repre ent the cope of patents either granted to him 

or applied for by him. 

(11) No employer t:hall di seminate fal or misleadino- information relative to competitor ' product , selling pri reputation, 

credit or finan ial tanding, ability to perform work or labor condition , among competitor ' employees. 

(12) No employer shall wrono-fully entice away th employ e of 

competitor with the purpose and ffect of hamp rino- injuring or 

embarra ing uch competitors in their bu ·in Nothing in thi 

paragraph shall be so interpreted a to in any manner re trict th 

right of any employe to seek employm nt with any empl y r at any 

time. 

(13) Each employer hall require complian · with the provi i n 

of this Supplemental Code, and of the Code, by the agent of u h 

employer whether such ag nt are directly mploy l on alar or 

are employ d on a commi sion ba i . 

(14) No employer shall furnish to any purcha er f quipment, 

d taile l shop lrawino- of tandar l unit , whether purcha ed or 

manufactured, without filing a statement in advan f u h propo d 

action with the Code Authority which hall approv or with the 

approval of th Admini trat r, di approve, within tw nty (20) day . 

Th Code Authority hall imm diately notify the ernpl er makin 

application of the action taken. 

(15) employer shall cooperate in the eva i n of thi uppl -

mental Co le, or of the o le by selling to r through an li rt:ribut r 

who doe not agr e to re ell only in ac ordance with th 

of thi. ur plemental ode and of th ode. 3 

AnTI LE X- ALE F R ExPORT 

HTI L XI- 1 DIFI 1 \Tl ' 

• ,'re (lHl'ngra ph 2 (~) (I f o r<l r np1iro , i ng thi~ 'n!l P. 

·t th Pr . i l nt n a ' 

a1 l r Y, t Ii ·en~e, rul 
15 

approval by the Administrator. The eligibility requirements, 

method, and effect of such voting hall be the same as provided by 

Article V hereof. 

ARTICLE XII-MONOPOLIES 

This Supplemental Code is not de igned to promote monopoly, and 

shall not be so con trued or applied as to oppress or eliminate small 

enterpri es or di criminate against them, and is designed to effectuate 

the Policy of the Act. 

ARTICLE XIII-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

persons engaged in the Subdivision on the eleventh day after iM 

approval by the President. 

Approved Code No. 347-Sepplement No. 22. 

R egistry No. 1342-01. 

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