Approved 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

PIPE TOOL 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON AUGUST 23, 1934 

• • 

U.S. 

WE DO OUR PART 

r - - . -

UNITED STATES 

GOVER ME 'T PRI TI G OFFICE 

W ASHI GTON : 1934 
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 B'.lilding, 

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

Chica.go, 11.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 8-01 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 Connnercial Trust Building. 

Pittsbtirgh, Pa.: Chambet of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. ~eattle, Wash.: 809 Federal Office Building. 
Appro ed Code o. 84.-Supplement o. 47 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

PIPE TOOL MANUFACTURING INDUSTRY 

As Approved on August 23, 1934 

ORDER 

APPROVI :rG S PPLEl\IE TARY ConE OF FAIR CoMPETITIO_ T FOR THE PIPE 

TOOL MANUFACTURING INDUSTRY 

A DIVI ION OF THE FABRICATED ME'TAL PRODUCTS MANUFA TURING AND 

METAL FINISHING AND METAL COATING IND STRY 

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, and in accordance with th~ 

provisions of Section 1 of Article VI of the Basic Code for the Fabricated :Metal Products Manufacturing and Metal Finishing and Metal 

oa.ting Indu try approved ovember 2, 1933 for approval of a 

Supplementary Code of Fair Competition for the Pipe Tool ~1anufacturing Industry, and hearin~ having been dul~ held thereon; 

and the annexed report on aid tlpplementary ode, containing 

findings with re pect thereto, havino- been made and directed to the 

President: 

OW THEREFORE, on behalf of the President of the nited 

tate , I Hugh S. Johnson, dministrator for Industrial R co er , pur uant to authority, ted in me b Executive Orders of the Pr ident, including E xecuti e Order Jo. 6543-A, dated D c mber 30, 

1933 and otherwi e · do hereby incorporate b reference aid annexed 

report and do fin 1 that aid upplcm ntary ode ompli in all 

r pe ts with the pertin n provi ions and will promote he poli y 

and purp of . id Title f aid A t · and do h r by order that 

aid uppl m ntar ode of Fair ornp titian be and it i her by 

npproYed. 

ppr val rccomm n 1 d : 

H Gn . JoH , -, 

Adm,ini tl'ato1' fo 1' b utu ·t,i al Recovery. 

B AUT , . 1 n Y 

Dii i ion Aclmvnistrator. 

' A III T J. D ... A ugu t ,J 1934. 

2003°-104~ 105-~l (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The TV hite House. 

Sm: This is a report on the Supplementary Code of Fair Competition for the Pipe Tool Manufacturing Industry, a division of the 

Fabricated Metal Products Manufacturing and Metal Finishing and 

Metal Coating Industry, the hearing having been conducted thereon 

in Washington, D.O., May 10, 1934 in accord.ance with the provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATE iENT 

The Pipe T ool Manufacturing Industry, being truly repr 0 sentative of this division of the Fabricated ~1etal Products Manufacturing and l\1etal Finishing and Metal Coating Industry, has elected 

to avail itself of the option of submitting a Supplementary Code 

of Fair Competition, as provided for in Section 1 of Article VI of 

the Basic Code, for the Fabricated l\1etal Products Manufacturing 

and l\1etal Finishing and Metal Coating Industry, approved by you 

on the econd day of N oven1ber, 1933, 

RESUl\IE OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terrn.s en1ployed in the Supplementary Code. 

Article III. This Industry is a division of the Fabricated Metal 

Products l\1anufacturing and Metal Finishing and Metal Coating 

I ndustry and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establishes a Supplementary Code Authority consisting of five ( 5) members to be elected at a meeting called by the 

Temporary Supplementary Code Authority, and gives the Administrator the authority to appoint one additional member without vote 

and provides 111achinery for obtaining statistics and the administration of the Supplementary Code. 

Article V provides for cost finding and accounting. 

Article VI provides for open price filing. 

Arti,..le VII provides means for preventino- destru&ive price 

cutting. 

Article VIII sets forth the unfair trade practices of this Supplementary Code which have been e pecially de igned to off.set unfair competition in thi division of the Industry. 

Article IX sets forth that no provisions of this Supplen1entary 

Code relating to prices or terms of selling, shipping m, marketing, 

shall apply to export trade. 

(2 ) 
3 

ntains th mandatory provi i ns ontain cl in ection 

10 (b) f th t and al pr ,1id for th ubmi sion of prop :eel 

am n lm nt t th uppl mentar ode. 

rti 1 .... ,..I pr , id ao-ainst monopoli 

tic . 

rti 1 XII recognize that pric in rea be limi d to a tual 

ad li tional in r a in the eller's o ts. 

rti 1 XIII tat the effective dat and duration of this upplementary ode. 

FI DINGS 

Th ting D puty Administrator in his final report to me on 

said upplementary ode having found as herein set forth and on 

the bu i of all the proceedings in this matter : 

I find that: 

(a) aid Supplementary Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recov ry 

Act including removal of obstructions to the free flow of interstate 

and for ign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of industry for the I urpo es of cooperative action among the 

trade groups, by inducing and maintainrng united action of lab r 

and management under adequate governmental sanctions and sup ri ion, 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 purcha ·inopower, by reducing and relieving unemployment, by improving 

standar ls of labor, and by otherwise rehabilitating indu try. 

(b) aid Indu try normally employs not more than 50,000 emplo ees · and is not classified by me as a major indu try. 

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

wi h the pertinent provisions of said Title of said Act, including 

without limitation Sub ection (a) of S ction 3, Subsection (a) of 

tion 7, and ub ecti n (b) of ection 10 thereof· an 1 that the 

appli ant as ociation i an industrial association truly repr entati e 

of the afore aid Industry; and that said a ociation impo e no 

inequitabl re tri ·tions on admission to member hip therein. 

( d) The uppl mentary ode is not designed to and will not p rmit monopoli r monopoli tic practices. 

( ) Th 'upplementary ode i not designed to and , ill n t 

limina. or ppr mall nterprises and ill not op rate to 1i -

criminatc a<rain. t them. 

(f) ho nga 1 in th r teps of th onomic proc hn.v n t 

b n depri eel f th right to be h ard prior to approval of , aid 

ur pl mcmtar le. 

For th r a n , ther fore, I ha e appro ed this Suppl mcntary 

ode. 

R pectfull 

HOH . JOH 

.Achnini trator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE PIPE TOOL MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING .AND 

MET.AL FINISHING AND l\IETAL COATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Pipe Tool Manufacturing 

Industry, pursuant to Article VI of the Basic Code of Fair Compe- tition for the Fabricated Metal Products Manufacturing and Metal 

Finishing and Metal Coating Industry, approved by the President 

of the United States on the 2nd day of November, 1933, and the 

provisions of this Supplementary Code shall be the Standards of 

Fair Competition of such Industry and shall be binding on every 

member thereof. 

ARTICLE II-· DEFINITIONS 

SECTION 1. The term "Pipe Tool I\1anufacturing Industry ', hereafter referred to as "the Industry", is defined to mean the manufacture for sale of Pir e Tools defined as Hand Appliances ( except 

Pipe 1i\T renches) for fabricating pipe systems, such as Stocks and 

Dies, Pipe Cutters, Pipe Burring Reamers, Pipe Vises, Pipe Vise 

Stand , Pipe Vise Posts and other hand appliances used for the 

same purpose as the above listed appliances are used for fabricating 

pipe systems. 

SECTION 2. The term " employee " as used herein, includes any and 

all persons engaged in the Industry however compensated, except a 

member of the Industry. 

SECTION 3. The term "employer n as u ed herein, includes anyone 

by whom any such employee is compensated or employed. 

SECTION 4. The term" member of the Industry" as used herein, includes, but without limitation, any individual, partnership, association, corporation or other form of enterprise engaged in the Industry 

either as an employer or on his or its own behalf. 

SECTION 5. The terms "President", "Act" and "Administrator'' 

as used herein, shall mean respectively the President of the United 

States, Title I of the National Industrial Recovery Act, and the 

Administrator for Indu trial Recovery. 

SECTION 6. The term "Basic Code", as used herein, is defined to 

mean the Basic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and :&1etal Finishing and l\'Ietal Coating 

Industry, as approved by the President on the 2nd day of November, 

1933. 

SECTION 7. The term "Supplementary Code Authority" as used 

herein, means the agency which i to administer this Supplementary 

Code as hereinafter provided. 

(4) 
5 

ECTION . The term " upplementary ode mmittee a u ed 

her in i d fin d to m an he Board of Dir tor f the Pipe Tool 

~fanufa turers ssociation, authorized by that As o iation to pre ent 

thi upplementar od . E TI N 9. The t rm 'Secretary ' as u eel h rein, is defined to 

mean th cretary of the Su_ppl mentary ode Authority. 

E TIO 10. The term Confidential g nt' as used h r in, is 

defined to mean the impartial agency de ignated by the upplementar ode Authority. 

ECTION 11. The term "Federation" as u ·ed herein is defined to 

m an Fabricated Metal Products F ederation or its successor. 

ECTION 12. The term 'Association", as used herein, is defined 

to mean the Pipe Tool Manufacturers Association or its successor. 

ARTICLE III- EMPLOYMENT PROVISIONS 

This I ndustry is a division of the Fabricated Metal Products 11anu:facturing and Metal Finishing and Metal Coating Industry and 

without limitation thB wa.ge, hour and labor provisions in Article 

III of its Basic Code as approved by the_ President November 2, 

1933, including Section _l of said Article III, by which the provision$ of sub-sections (1), (2) and (3) of 'Section 7 (a) of Title I 

of the Act' are made conditions of this Code, are specifically incorporated he.rein and made a part hereof as the wage, hour. and 

labor provisions of this Supplementary Code. 

ARTJCLE I V- ORGANIZATION AND ADMINISTRATION 

SECTION 1. During the pBtiod not to exceed sixty (60) days follpwing the effective date of this SupplBm0 ntary Code, the Supplementary Code Committee sha.11 constitute a Ten'l:Qorary upplementary Code Authority, until the Supplemei1tary Code Authority 

is elected. · 

There shall be constituted within the sixty (60) day period a 

Supplementary Code Authority consisting of five (5) members of 

the Industry, to be elected by the members of the Industry, at a 

μ1.eeting called by the Temporary Supplementary Cod~ Authority, 

upon ten (10) days' notice sent by registered mail to all members 

of the Industry, whose names may be a,scertained after diliO"ent 

search, who may vote ~ither in person or by proxy. The m. mb r 

of the Suppl mentary ode Authority first elected shall serve until 

the next succeeding annual m~eting of the A ociation in O t ber, 

1935. Thereafter, 'members of the upplementary ode uthority 

shall be elected at a me ting of the members of the I 1du tr to 

be h ld at the time and pla f ea h annual meeting of tho 

ciation to serve un il the following annual meetino- due no ice of 

the tim and place of the 1 ctio;n to b ent to all roemb rs of 

the Industry who e nam s may be ascertain l aft r diligent sear h. 

The m mbers of he upplem ntar ode uthority hall be 

elected in the foll.owing mann r: 

(a) One (1) m mb r h hall be am mb r of h ndustry by 

a majority ote of all kn wn n.emb rs f h I ndu try pr sent in 

per on, or by proxy a h m mber to haY one vote. 
6 

(b) One (1) member of the Industry who is not a mmnber of the 

Association may be elected by a majority vote of all non-me1nbe.rs 

of tl e Association present, in person or by proxy, each. member to 

have one Yote. 

(c) Three (3) memb.ers by a fifty-one perc~nt (51% ) vote of 

members of the Association present, jn person or by proxy, weighted 

on the basis of one vote for each member a.nd one additional vote 

for each $5,000.00 of an.1.~ual net sales in the p1·evious calendar year 

reported to the Supplementary Code Authority or any agency 

designated by it provided, however, th.at no one 1uen1ber may cast 

more than twenty-five percent (25%) of the total number of votes 

cast. 

A vacancy in the membership of the Supplementary Code Authority shall be filled by a majority vote of the remaining 111.embers of the Supplementary Code Authority, provided, however, th.at 

the vacancy shall be filled from the class of membership in the 

Supplementary Code Authority in which such vacancy occurs. 

In addition thereto the Administrator may appoint a member of 

the Supple111.entary Code Authority who without vote shall serve 

without expense to the Industry, unless the Supple1nentary Code 

Authority agrees to pay such expense. The representative who n1ay 

be appointed by the Administrator shall be given reasonable notice 

of and may sit at all meetings o~ tl~e Sul?plementary ~ode Author~tf, 

SECTION 2. Each trade assoc1ation directly or indirectly participating in the selection or activities of the Su1::iplementary Code Authority shall (1) im]?ose no inequitable restrictions on admission to 

membership, and (2) shall use due dilig.ence in submitt:i_ng to the 

Administr:1tor true copies of its Articles of Association, By-Laws, 

Regulations and any amendments made thereto, together with such 

other information as to membership, organization, and activities as 

the Administrator may deem necessary to effectuate the purposes of 

the Act. 

SECTION 3. In order that the Supple111.entary Code Autho:rity ·shall 

at a.11 times be truly representative of the Industry and in other respects comply with the provisions of the Act,. the Administrator 

nu1-y prescribe such hearings as he may deem proper; and thereafter 

if he shall find that the Supplementary Code Authority is not truly 

representative. or does not in other respects c.01nply with the provisions o:f the Act, may require an appropriate modification of the 

Supplementary Code ·Authority .. 

SECTION 4. It being found necessary in order to support the ad- • 

ministration of this Supple1nentary Code and to n1aintain the standards of fair con1.petition established hereunder and to effectuate the 

policy or the Act, the Supple1ne:ntary Code Authority :is authorized: 

( a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes and to m.cet such obligations out 

of funds wh:i h may b raised as hereinafter provided and which 

shall be. held in trust for the. purposes of the Supplementary Code. 

(b) To submit to the Administrator for his a.pproval, subject to 

such notice and opportunity to be heard as he n1ay dee-Jfil. necessary 

(1) an ite1nized budget of its estimated expenses for the foTegoing 

purposes, and (2) an equitable ba is upon which the funds 'necessary to support such budget shall be contributed by 111.einbers of th.e 

Industry. 
7 

o:f contribu ion have b n ap-
8 

( d) To make recommendations to the Administrator for the coordination of the administration of this Supplementary Code with 

such other codes, if any, as may be related to or affect the members 

of this Industry. 

( e) To appo1nt a trade practice committee which shall meet with 

the trade practice committees appointed under such other codes as 

may be related to the Industry .for the purpose of formulating fair 

trade practices to govern the relationships betw~en _production .and 

distribution employers under this Supplementary Code and under 

such others to the end that such fair trade practices may be propo,secl. 

to the Administrator as amendments to this Code and such other 

Codes. 

( f) To recommend to the Ad)ninistrator further :fair practices 

provisions to govern members of th~ Industry in their relations with 

each other or with other .industries and to re~ommend to the Admh1-

istrator measures for industrial planning, including stabilization of 

employment. (g) To furnish from time to time to the Basic Code .Authority _designated in said Basic Qode sucl;i. information as may be required to 

be furnished under the terms of the Basic Code. 

(h) To appoint a comrp.ittee, with consumer and governmental 

r epresentative;, designated ~y the Administr~tor; to rnake a st_udy o.f 

dimensional and qt}a~ty. srand;1rds to be applieq 0 the pro~uc.ts 

manuf~ctured by this Industry. Such committe~ shall report within 

at least six (6) months to £he Supplementary Code Aμthority, and 

if th_e recommendations o~ said committee a~e. approved by the Supplementary Code Authority and th.e Admmrstrator, the standai;ds 

thus e,stablished shall be adhered to by ~l member$ o:f this Industry 

in manufactm;ing the products of tl;iis Inch1_stry. 

SEC'IJON 6. Pursuant to the provisions o.f the Act and subject to 

such rules and regulations as the Administr~tor may prescrib~, the 

Supplem.entary Code Authpri.ty shall have the powe·r to investigate 

all complaints filed with it by one member qf the. Industry against 

another member of the Industry. In the event of complaint being 

registered with the Supplementary Code Authority ag~iμst any corporate member of the I11d1,1stry, alleging a violation of this Snpplemen~ary_ Code, the Supplementary Code Authority may cause an investigat10n to be made by a person m1:1tually agreed upon by the 

Supplementary Code Authority and the .melllhe'r of the Industry 

against whom the complaint is filed, or, if they ~re unable to agree 

within a reasonabl~ time, by a disint-erested person appointed by the 

Administrator. The Supplementary Code Authority may require 

the member complained again.st to file. with such investigator, within 

such· reasonable time after receipt of a copy of the complaint, if 

the Supplementary Code Authority shall determin,e, an answer to 

such complaint acc01npanied by supporting qata. Both ans-wer and 

data shall be verified by affidavit. The investigator shall examine so 

much of the pertinent books and records o,f sueμ member as may be 

r equired to verify the statements contained in ,said answer and/or the 

accuracy of the data supporting such statements. I£ the 1natter cannot thereafter be satisfactorily adjusted within the Industry, tlie 

facts may be placed be.tore the Basic Code Authority to be presented 
9 

t-0 th Admini trator for u h proc dure as he may deem advisable 

under the Act. 

E TION 1. 11 individual and private information r c ived by 

the o:nfid ntial o-cnt, appointee or agency, from r po , or a. a 

r ult f inve tio-ation, hall be h l i in strict confid n e and not 

di losed cept in composite f rm, to any ompetit r or other p ron without the perrni. ion of he member of the Indu try involved. 

ECTION 8. To th ext nt permitted by the Act and sub] ct to such 

rule and r o-ulations a the Admini trator may pre cribe any or all 

inf rmation furni h l o the Supplementary Corl • uthorit by any 

member of this Indu try pursuant to the proviNion of thi Supr l -

mentary ode hall be subject to verification by • n impartial a · n y 

agr d upon by the Sur plementary Code Authority and th member 

of the Industry in que tion, and, failing such agreem0 nt, uch impartial agency shall be selected by the Administrator, whi h impartial 

ag ncy may check so much of the pertinent books, accounts and 

records of such members of the Industry as ma.y be r quir d to 

verify the accnracy of the information so furnished . 

SE TION 9. Nothing contained in this Supplementary Col hall 

constitute the members of the upplementary Code Authority partners for any purpose. Nor shall any memb r of the Supplementary 

Qode Authority b liable in any manner to anyone for a.ny act of any 

other member, officer, agent or employee of the Supplementary I fo 

'Authority. Nor shall any member of the Supplementary o le 

Au~hority, exerci ing_ reasonable dilig nee in tl~e conduc~ ~f. his 

duties hereunder be liable to anyone for any action or onu s10n to 

act under this upplementary Code except. for his own willful 

malfea ance or nonfeasance. 

SECTION 10. E ery employer ·hall provide for the safety an l lPalth 

of employees during the hours and at the pla e of th ir mpl .'-

ment. Standard for safety a.nd health shall be ·ubmitt cl by the 

uppl mentary Cod uthority to the Administrator within thr 

(3) months aft r the ffe tive date of the upplementary ocl . 

:ECTIO 11. If the dminj. trator believes that any a ti n f tlrn 

Supplem ntary od uthority or any a ·ency thereof is unfair 01· 

unju. t or on rary t tho public int re t, the dministrat r may 

requir that such a tion be susp ncled to a:ffor l an opportunity for 

inve -tigation of he m rit of u h a tion. Fu her a tion b . u h 

uppl m ntary 1e uthority or agenc. re ~rding th n a t r 

complain d of may bo tak n if appro by tl \.dmini tra .. r . bnt 

shall not bo taken if di. a_pprov db tl e lmini. trat r i hin thirt. 

(30) <la ' of n ice to him f int nti n to pr c cl with n ·h actioll. 

rm 

le 
10 

Authority, any agent thereof, or any member of this Industry to 

suggest uniform additions, percentages, or differentials or other 

uniform items of cost which are designed to bring about arbitrary 

uniformity of costs or prices. 

ARTICLE VI-OPEN PRICE FILING 

SECTION 1. Each member of this Industry shall file with a confidential and disinterested a.gent of the Supplementary Code 

Authority or, if none, then with such an agent designated by the 

Administrator, identified lists of all his prices, discounts, rebates, 

allowances, and all other tenns or conditions of sale, hereinafter in 

this Article r eferred to as "price terms", which lists shall completely and accurately conform to and represent the individual 

pricing practices of said member. Such lists shall contain the price 

terms for all such standard products of this Industry as are sold 

or offered for sale by said member of this Industry an.cl for such nonstandard products of said member of this Industry as shall be designated by the Supplementary Code Authority. Said price terms 

shall in the first instance be filed w:ithin 10 days after the date of 

approval of this Suppl~mentary Cod~. Price terms a,nd revised 

price terms shall become effective immediately upon receipt thereof 

by said Agent. Immediately upon receipt thereof, said Agent shall 

by telegraph or other equally ·prompt means notify said member of 

the time of such r eceipt. Such lists and revisions, together with the 

effective time thereof, sha-11 upon receipt be immediately and simultaneously distributed to all members of tPis Industry and to all of 

their customers who have applied there::for and have offered to defray 

the cost actually incurred by the Supplementary Code Authority in 

the preparation and distribution thereof and be available for inspection by any of their customers at the office of said Agent. Said lists 

or revisions or any part thereof shall not be made available to any 

person until released to all members of the Industry and their 

customers as aforesaid; provided, that prices filed in the first instance 

sha.U not be released until the expiration of the aforesaid 10 day 

period after the approval of this Supplementary_ Code. The Supplementary Code Authority sh~ll maintain a permanent file of all 

price terms filed as herein provi'1ed, and shall not destroy any part 

of such records except upon written consent of the Administrator. 

Upon request, the Supplementary Code Authority shall furnish to 

the Administrator or any duly designated Agent of the Adn1inistrator copies of any such lists or revisions of price terms. 

SECTION 2. When any member of this Industry has filed any 

revision such member of this Industry shall not file a higher price 

within 48 hours. 

SECTION 3. No member of this Industry shall sell or off er to sell 

any products of the Industry, for which price terms have been filed 

pursuant to the provisions of this.Article, except in accordance with 

such price terms. · 

SECTION 4. E ach member of this Industry shall furnish the said 

Agent for distribution with such number of copies of his price list as 

the Supplementary Code Authority may prescrib~. 
11 

E TI N 5. o m mber of thi In lu try hall enter into any agreeID nt uncle tandino-, ombination or conspira y to fix or maintain 

pri t rm nor au or attempt to au any m mber of this Inu tr t han · hi pric term b the use of intimidation o rcion, 

or an th r in:flu n in on i t nt with the maintenance of the free 

and op n mark t , hich it i the purpose of this rti le to er ato. 

E TION 6. thing in rti l I of tl is Supr l rr ntary ode 

hall appl to al , to employ es for their own us orb tw en memb r of the Indu tr provided that u h sales shall not be below 

co t · and l rovid cl further that resale of such product b the purchasino· member of tho Industr shall be in accord with the provision of thi upplementary Code. 

\.nTr LE YII- CosTs AND PRICE C TTI G 

ECTION 1. The standards of fair competition for this Industry 

with reference to pricing practices are declared to be as follows: 

(a) Wilfully de tructive price cutting is an unfair method of 

competition and is forbidden. Any member of this Industry or 

of any other Indu try or the custon1ers of either mn,y at any time 

complain to the Supplementary Code Authority that any filed price 

constitute unfair competition as destructive price cutting, imperiling mall enterprises or tending toward monopoly or the impairment of code wages and working conditions. The Supplementary 

Code Authority shall within 5 days afford an opportupity to the 

member filing the price to answer such complaint and shall within 

14 days make a ruling or adju tment thereon. If u-ch ruling is not 

concurred in by either party to the complaint, all papers shaU be 

referred to the Research and Planning Division of NR W"hich 

shn,ll render a report and recommendation thereon to the 

Administrator. 

(b) When no declared emerg 0 ncy exists a to any gfren product, 

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

that ound cost estimating methods should be u ed and that con- sideration hould be given to costs in the determination of pricing 

policie . . 

(c) hen an emergency exists as to any given product al below the tated minimum price of such proclu t in violation of 

ection 2 hereof, i forbidden. 

E TIO :r 2. Eme1·gency P1·ovision .-(a) If the dmini.trator, 

af r inve tigation shall at any time find both ( 1) that an em ro- n y 

has ari en within this Indu try adver ely aff cting mall nt rpri 

or wa ·e or labor con lition or tending towar l monopoly or oth r 

acute onditi ns whi h t nd t cl f at th purpo e. · f th,., .t. t · an l 

(2) that the l t nnination of th stat d minimum pri f r a p ified product within thi Indu -try f r a limit d I ri l i ne e . ary 

to nutiga e th c n litions on titutino- , u h mergen y and to :ff ctuate .he 1 nq e f the t · th up11 m nLir. Cod uthority 

ma au. an impartial ag n y t inY :tig t t. and L re mm nd 

to th dmini rat r a. ] t rminat' n of th tated minimum pri e 

f the I roclu t. aff t db the m rg n · , an<l h r ur n l clmini trator 1 a pr c d t l t rn in . u h , tuted mjnimum ric . 

(b) "\Vhen th cln ini Lrat r ·hall haY l 1. "rmin cl • u h -tat d 

minimum p ·i f r a , 1 ·ifi l pr clu t f r tat l p riod, whi h 
12 

price shall be reasonably calculated to mitigate the conditions of 

such emergency and to effectuate the purposes of the National Industrial Recovery Act, he shall publish such price. Thereafter, 

during such stated period, no member of this Industry shall sell 

such specified products at a net realized price below said stated 

minimum price and any such sale shall be deemed destructive 

price cutting. From time to time, the Supplementary Code Authority may recommend review or reconsideration or the Administrator 

may cause any determination hereunder to be reviewed or reconsidered and appropriate action taken. 

ARTICLE VIII-UNFAIR TRADE PRACTICES 

In addition t-0 the U nfa.ir Trade Practices covered in Article V 

of the Basic Code, except Sections A, B and F thereof, which are 

made a part hereof the same as though repeated and set forth at 

length :for all purposes of this Supplementary Code, the :following 

de.scribed acts shall constitute unfair practices. Any member of the 

Industry who shall use or employ any of such unfair practiees 

shall be guilty of a violation of this Supplementary Code: 

RULE 1. Secret R ebates.-N o member of the Industry shall 

secretly offer or m_ake any payment or allowance of n rebate, refund, 

commission, credit, unearned discount or excess allowance, whether 

in the form of money or othe'rwise, nor shall a member of the Industry 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 sa\e. 

RULE 2. No member of the Industry shall withhold from, or 

insert in a.ny invoice a false record wholly or in part of the transaction represented on the face thereof. 

RULE 3. No member of the Industry shall })ermit the splitting of 

commissions o-r other compensation for the sale of any product of 

the Industry received by his employee or agent with the buyer, or 

his agent for the purpose of influencing a sale. · RULE 4. No member of the Industry shall offer or give prizes, 

premiums or gifts to purchasers or their agents in connection with 

the sale of products of the Industry or as an inducement thereto in 

any manner which involves co,mmercial bribery in any form. 

RULE 5. No member of the Industry shall give any allowance for 

used products of the Industry unless sold with the privilege of 

return. Nothing contained in this Rule shall be construed to prohibit 

a member of the Industry from allowing credit for or making free 

replacement of any products of his own manufacture because of 

errors in shipment or which are defective either as to material or 

workmanship. 

RULE 6. No ,member of the Industry shall give catalog allowances 

to distributors or those persons publishing for them. Nothing contained in this Rule shall be construed to prohibit legitimate and bona 

fide advertising allowances. _ RULE 7. No member of the Industry shall guarantee prices against 

decline beyond elate of shipment nor accept orders at old prices after 

the effective date of any change in price. 
13 

RULE . N memb r of the Indu try shall a ept orders for future 

deli ry unle th term of sale a to price, pecifications and de- liv r ar definit ly tat d. 

R D. o menibcr of the Indu try shall fail to brand the produ t of th In lu try n1anufactured by him with his trade-mark, trade 

n:un or me ther mark of identification. 

R LE 10. member of the Industry shall accept return of mer- ohantabl urplus good except :f r merchandise credit only, such 

credit to be subject to d duction f r tran portation cost , for any, nece ary refini hino·, and a charge for handling. 

RULE 11. No member of the Industry shall grant any more favorable term of pay1nent tl an 60 days net from late of shipment or 

2% for cash, on the tenth day of the month for shipments mado 

during the preceding month. 

RULE 12. No member of the Indu try shall sl1ip goods on consign1nent xcept under circumstances to be defined by the Supplementary 

Code Authority and approved by the Administrator where peculiar 

circumstances of the trade or indu try r equire the practice. 

AnTIOLE IX-ExPORT TRADE 

No prov1 1011 of this Supplementary Code relating to prices or 

term of selling, shipping or marketing, shall apply to export trade 

or sales or shipments for export trade. "Export Trade" shall be as 

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

ARTICLE X-MODIFICATION 

ECTI 1. s provided in Section 10 (b) of the Act, the President 

may fr m time to time cancel or modify any order, approval, license, 

.:ul or reo-ulation i sued under Title I of the Act. 

:CCTI0N 2. This Supplementary Cod-e, except as to provi ion requir d by the A t, may be modified and/ or amended on tLe ba i of ~ p rience or han es in circum tance such modifications and/or 

am ndment to be ba ed u1 on application by tl e Supplementary Code 

uthority r other rcpr ·entativ grou1 within the Indu try to tl e. dmini -trat r and sn h noti e an l hearing as he hall r ecify and 

to become ff ctfr a· part of thi upr~lementary o le on th approval by the Presi lent. 

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3 1262 08852 5638 

ARTICLE XIII-EFFECTIVE DATE AND DURATION 

This Supplementary Code shall become effective at 12: 01 o'clock 

A.M., Eastern Standard Time on the tenth day after it is approved 

by the President and shall continue in effect until June 16, 1935, 

or the earliest date prior thereto on which the President shall, by 

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

the emergency recognized by Section 1 of the National Industrial 

Reco,Tery Act has ended. 

ApproYecl Code Ko. 84-Supplement No. 47. 

Registry No. 1149-30. 

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