Approved Code No. 347-Supplement No. 44 Registry No. 1399-56 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENT ARY 

CODE OF FAIR COMPETITION 

FOR THE 

CEREAL MACHINERY 

INDUSTRY 

(A Di vision of the Machinery and Allied Products Industry) 

AS APPROVED ON NOVEMBER 14, 1934 

WE DO OUR PART 

UNIV. OF FLU . 

t • ~ • 

TS _DEPT. 

I • 

UNITED STATES 

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 Sur1erintendent of Documents, Government 

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 50-! Po t Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, r. Y.: C'hamb r of Commerce Building. 

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

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

Cle,eland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, l\Iicb.: 801 First National Bank Building. 

H ouston, Tex.: Chamber of Commerce Building. 

Inclianapoli ·, Incl.: Chamber of Commerce Building. 

JacksonYille, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 102, Baltimore Avenue. Los Angeles, Cnlif. : 1163 Soutll Broadway. 

Louisville, Ky.: 4.08 Federal Building. 

Memphis, Tenn.: 228 Federal Building. 

l\Iinneai,olis, 1\Iinn. : 213 Fec:eral Building. 

New Orleans, La.: Room 225-A, Oust mhouse. 

New York, N. Y.: 73-! Customhouse. 

Norfolk, Ya.: 40G East Plume Street. 

Philacl lt)hia, Pa.: 422 Commercial Tru. t Dnilclino-. 

Pitt burgh, Pa.: Chamber of ommerce Bui1clin<T. 

Portland, Oreg.: 215 N w Po t Offic Building. 

St. Louis, fo.: 506 Olirn 'treet . .'an Fran ·isco, Calif.: 310 Cn toml10u. e . • 'eattle, Wa h.: OD Federal Offi ·e Building. 
Approved Code No. 347-Supplement No. 44 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

CEREAL MACHINERY INDUSTRY 

As Approved on November 14, 1934 

ORDER 

APPROVING SuPPLEl\fENTARY CoDE OF F AIR COMPETITION FOR THE 

CEREAL 1\1ACHINERY INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Cereal 1\1achinery Subdivision of Machinery and Allied Products Industry, and hearing 

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

made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise; 

does hereby incorporate by reference said annexed report and does 

find that said Supplemental Code complies in all respects with the 

pertinent provi ions and will promote the policy and purpo es of 

said Title of said Act; and does hereby order that said Supplemental 

Code of Fair Competition be and it is hereby approved, subj ect to 

the following conditions: 

( 1) That the provisions of Article VIII, Sections ( u) and (b), 

insofar as they pre cribe a waiting period between the filing with 

the Code Authority ( or such ao-ency as may be designated in the 

Supplemental Code) and the effective date of price li t , as originally filed and/ or revised price lists or revised terms and conditions 

of sale, be and they hereby are stayed pending further order; and 

(2) That the provisions of Article IX, Section 4, be and they 

hereby are stayed pending the submission of satisfactory evid€.nce 

concerning distribution of the products of the Subdivi ion to the 

National Industrial Recovery Board. 

97356°-1325-55-34 (1) 
2 

(3) That the prov1s10ns of Article IX, Section 5, be and they 

hereby are stayed pending further order of the National Industrial 

Recovery Board in order that the Code Authority may submit a 

Section determining trade-in allowances. 

NATIOXAL INDUSTRY RECOYERY BoAnn, 

By W. A. HARRil\fAN, Administrative Officer. 

Approval recommended: 

BARTON w. MURRAY, 

Division Admi11.istrator. 

'YVASHINGTON, D. c., 

Nov cm,ber 14, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White Howse. 

Sm: This is a report on the Supplemental Code of Fair Competition for the Cereal :Machinery Subdivision of Machinery and Allied 

Products Industry, a public hearing on which was held in ,vashington, D. C., on December 8, 1933, and reconvened on December 21, 

1933. The hearinffs were conducted in full accordance with the 

provisions of Title I of the National Industrial Recovery Act. 

GE rERAL STATEMENT 

The Cereal :Machinery Subdivision, being truly representative of 

the manufacturers of the products defined m Article II of the Supplemental Code, has elected to formulate and submit a Supplemental 

Code of Fair Competition as provided for in the second paragraph 

of Article I in the Code of Fair Competitipn for the Machinery 

and Allied Products Industry, approved by you on the seventeenth 

day of March, 1934. 

The Subdivision includes the engineering, designing, manufacturing, and/ or importing and assembling for sale of machinery (including spare, repair and replacement parts thereof) for reduction, 

cleaning, roasting, drying, cooling, separating, mixing and flaking 

a used in the manufacture and processing of cereals, seeds and nuts 

and/ or their by-products and includes supplies and/ or equipment 

directly incident thereto and also includes grinding and corrugating of mill rolls ( excluding machinery and/ or equipment for extracting vegetable oils, hammer mills, machinery as sold for use on 

farms, machinery and/or equipment or parts therefor having a 

general application and use for purposes other than the uses hereinabove enumerated) and includes all persons so engaged. 

ECONOMIC EFFECT 

The Cereal Machinery Association has submitted in its co le application data howing the estirn.ated values of aggregate inve ted 

capital, production capacity, and annual sales of machinery and 

parts thereof used in the handling, storage, and processing of cereals, 

eeds, and nuts for the years 1928 to 1933, inclusive. This a socia- tion claim to represent 80 per cent of the entire indu try mea ured 

by dollar volume of business in 1932. 

Data pertaining to employment, average hours of labor, and aver- age earnings have been ummarized from 36 National R covery 

Administration questionnaire returns. 

Annual sale of the products of this Subdivision declined from 

$9.7001000 in 1929 to $3,290,000 in 1932, or 66.1 per cent. The Subdivi~ion ha stimated the value of sales for 1933 at $2,760,000 which 

(3) 
4 

indicates a fLlrther decline of 16.1 per cent as compared with the 

previous period. Invested capital ha dechned 13.7 per cent since 

1929, while e timated production capacity has increa ed 2.7 per cent. 

The trade a sociation in its code application has estimated that this 

Subdivision employed approximately 2,070 employees in 1929. A 

tabulation of questionnaire r turns from 36 e tabli hment of th 

Subdi-vi ion hows that in 1929, 81. per c nt of the total number of 

employees were factory workers. On the ba is of this 81.8 per cent, 

377 office workers have been egregnte l from the 19:...9 figure, leaving 

1,693 factory workers. 

No figures are availabl on the full-time hour I er week for the 

entire Subdivision. A summarized tabulation o-f National Recovery 

Admini tration que tionnaires returned by the Subdivision show 

that in June, 1929, the averao·e working time ranged from 8 to 9 hour · 

per lay and in June, 193- , and October, 19 3, 7 to 8 hours per day. 

The effect of the 40-hour provi ion with pro 1uction at more normal 

leyels may bee timated on a basis of total man-hour · per week in 1931 

divided by the number of hours pr cribed in the code. 

After 1929 man-hours declined steadily from 86,000 to a minimmn 

of 30,430 in 1932, or approximately 65 per cent. :Man-hour as of 

October 15 1933, increa ed to 43,940, or 44 per ent over the 1932 

level. 

If it is assumed that the 46,990 man-hours for 1931 are repre entative of the volume of production f or that year, and a reasonable 

measure of man-hour requirements in a more normal period, the 

adoption of the 40-hour " ·eek would require a force of approximately 

1,175 workers, or 69 per cent of the 1929 working level. 

The probability that all factory workers in the Subdivision will be 

working to the limit of the maximum 40-hour provision is remote. 

Consequentlv the average work week i likely to be shorter, say 36 

assumed effective hours, and employment correspondingly greater; 

viz., 1,305 workers will be required to produ e the 1931 volume. 

The minimum wage provisions proposed for the Subdivisions which 

are operating under the Code of the :Machinery and Allied Product 

Industry are based on a fiat minimum hourly rate of 32 cents per hour 

for the South and the following city population differential for all 

other sections of the Unite l State : 

Over G0,000 population __ ____ __________________ 40 ·ents per hour 

Over 10,000 to 50,000 population _____________ __ 3 ents per b ur 

10,000 population and under ___________________ 36 cents per hour 

In addition to the minimum wage rates ·hown above, the Code provides that women engaged in sub tantially the same work as men 

f<hall r eceive the same rate of pay a u h men employees ; that th' 

minimum ·wage for worn n employees eno·aged in plant operation 

hall be not le than 87.5 per cent of the proper rate for the localit. 

in which mr loved as I ecified · and that the minimum in the outh . hall b n t le . than 32 ents per hour. 

T tal timatecl weekly payroll for the nb livi ion have b n com-

} uted by multi1 lyino· the averao-e weekly wao· hown for work r in 

th ·ample co, ering 6 e tabli hmcnt of the nbdivi. ion by the e timated number of fa t ry w rker . The timat d weekly pa_ roll of 

$41,766 for thi ubdivi ion in 1929 declin d to a minimum of 10 61-

in the fir t quart r of 1. 3 , or 75 p r c n . Payroll amounting to 
5 

$20,322, for the third quarter of 1933 indicate that payrolls for the 

Subdivision hav incr a ed about 91 per cent since the first quarter 

of 1933. 

According to a summary of que tionnaire returns from 36 establi hments of the Subdivision, average weekly earnings declined from 

$24.67 in 1929 to a minimum of $13.54 in the first quarter of 1933, or 

45 per cent. 

\Veekly wages corrected for the co t of living ( T ational Recovery 

Admini tration index) declined from $24.67 to a minimum of $19.48 

in the first quarter of 1933. In th e third quarter of 1933 these" real" 

wages had increased to $24.33. 

Num ber of Factory 1Torkers R eceiving .il.Iini11w;n Wages 

Workers Receiving 

Less than the 

Minimum ReProposed gardless of LocaProposed for South or Cities Ranging from Minimum tion 

Ilourly Waga'. 

Per• Approxicent mateNum 

ber 

--

50,000 population and over. ........................................... 4() cents . .... 40. 8 361 

10,000-50,000 population .... .......................................... 38 cents . .... 35.3 312 

Under 10,000 population .............................................. 36 cents . .... 29.9 265 

Southern minimum ................................................... 32 cents .... . 18.6 165 

~1inimum hourly earnings of factory wage earners have been reported in questionnaire returns from 36 establishments of the Subdivision for June 15, 1929, June 15, 1933, and October 15, 1933. 

The lowest minimum wage reported for each of the three periods 

by any of these establishments ranged between 15 cents and 20 cents 

per hour. 

Based on the percentage of number of wage earner receiving less 

than the designated rates, as shown above, and the fact that the 

minimum wage paid as of October 15, 1933, ranged between 15 and 

20 cents per hour, the adoption of the proposed minimum honrly 

r::i.tes is expected to cause an increase in the payrolls of this Subdivision based on the distribution as of June 15, 1933. The estimated increase will probably not exceed about 8.4 per cent, assuming 

only upward adjustment in the brackets below the 40-cent minimum. 

RESUME OF SUPPLEMENTAL CODE 

Article I states the purposes of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Sub1ivision as u eel in this Supplemental Code. Article III provides for the adoption of the employment proviions of the National Indu trial Recovery Code of the Machinery and 

Allied Product Indu try, as approved by you, and as from time to 

time amended. 

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

and IX of the Code of Fair Competition for the ~1achinery and 

Allied Products Indu try. 
6 

Article V provides £or the establishment or a Code Authority and 

de.fines its powers and duties. 

Article VI provides for an accounting system and methods of cost 

finding and/or estimating. 

Article VII provides that no products of the Subdivision shall be 

sold or offered for sale below a reasonable cost when the Code 

Authority determines that an emergency exists. 

Article VIII provides for methods of setting up, revising and 

filing price lists and discount sheets and tern1s of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Article X states that no provision of this Supplemental Code 

r elating to pricing and marketing shall apply to Export sales as 

defined by the term " Export " in this Article. 

Article XI provides that this Supplemental Code and all the proYi ions thereof are expressly made subject to the right of the President, in accordance with Subsection (b) of Section 10 of the Act, 

from time to time to cancel or modify any order, approval, licen e, 

rule or regulation issue l under said Act. Provision is also made 

that modifications may be submitted by the Code Authority to the 

Administrator for approval. 

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

a pp lied as to ·permit monopolies, or monopolistic practices, or to 

eliminate, oppress, or discriminate against small enterpri es. 

Article XIII states the effective date of this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to us on 

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

basis of all the proceedings in this matter : 

"\Ve find that : 

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

policies and purposes of Title I of the National Industrial Recovery 

Act, including remoYal 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 indu try for the purpose of cooperative action among the 

trade groups, by inducinO' and maintaining united action of labor and 

management under ad quate governmental sanctions and uper ision, 

by eliminating unfair competitive practices, by promoting the fullest 

pos ible utilization of the present procluctiYe capacity of in lu trie , 

by avoiding undue re triction of production ( except a may be 

temporarily required) by increasing the on nmption of indu trial 

an l agricultural produ ts through increa sing purchasino· p "·er, by 

reducing an l relievin°· unemployment, by jmpr ving stan lards of 

l abor, and by otherwi c rehabilitating in lu try. 

(b) Said Subdivi. ion normally employ· not more than 0 000 

employees; and is not ·la sified by us a :1 mn. jor industry. • 

( c) The upplemental Code as approY l om1 lie in all r pect 

"ith the pertinent proYi. ion of said Titl f ai l ct in lmling 

without limitation ub. tion (a) of ection 3 ub ection (a) f 

Section 7, and ub e tion (b) of Se tion 10 th rcof · an l that th 

appli ant a so jation i an industrial a.- ociation truly r pr ntatiYe 
7 

of the aforesai 1 c:'ubdi,·ision · an l that aid a ociation imposes no 

inequitable re~ tri tion on admi ion to m mber hip therein. 

( d) Th Supplemental Code i not de igned to and will not permit 

manor olie or monopolistic practices. 

( e) The Sup1 lemental Code i not designe l to and will not 

eliminate or oppress mall enterpri es and will not operate to discriminate again t them. 

(f) Those eno·arred in other tep of th economic proces · have not 

been deprived of the right to be heard prior to approval o:£ said 

Supplemental Code. 

For the e rea ans, therefore, we have approved this Supplemental 

Code, provi led that certain provi ions r elating to price publication 

in Article '\ III, the provisions of Article IX, Section 4, and the 

provision o:£ rticle IX, Section 5, are stayed as stated in the Order. 

For the National Indu trial Recovery Board: 

NOVEMBER 14, 1934. 

:)7356 °-1325- 55-.-34-2 

w. A. HARRIMAN, 

.Adrninistrative Officer. 
SUPPLEMENTARY CODE OF FAIR COMPETITION F OR 

TI-IE CEREAL MACHINERY INDUSTRY 

A DIVISION OF THE MACHI ERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I - PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supple- mental Code of Fair Competition for the Cereal :Machinery Subdivision of the 1\fachinery and Allied Products Industry, and together 

with the Code of Fair Competition for the 1\1achinery and Allied 

Product Industry, shall be the standard of fair competition for this 

Subdivision, and hall be binding on every employer therein. 

ARTICLE II- DEFINITIONS 

(a) "Applicant 'means the Cereal Machinery As ociation, a trade 

organization, all members of which are engaged in the manufacture 

for sale of the products of the Cereal J\1achinery Subdivision of the 

:Machinery and Allied Products Industry. 

(b) ' Indusfry" means the :Machinery and Allied Products Indu try, a defined in its Code of Fair Competition a approved by 

the President on March 17, 1934, and as such definition may from 

time to time be amended. ( c) "Subdivision" means the Cereal Machinery Subdivi ion of 

the J\1achinery and Allied Products Industry as defined and set forth 

in paragraph five (5) Article II of the Co le of Fair Competition 

for the :Machinery and Allied Products Indu try a follow 

(cl) " Cereal Machinery Subdivision " as u eel herein, i cl fine l to 

mean the engineering, designing, manufacturing, and/ or importing 

an l a sembling for sale of machinery (including pare, repair and 

replacement part thereof) for reduction, cleaning, roa ting drying, 

cooling, separating, mixing and flaking a u ed in th manufacture 

and proce ing of cereals, seed and nut and/ or their by-products 

an l includes upplies and/ or equipment directly incident thereto and 

al o include grindina and corrugating of mill rolls ( exclu Eng machinery and/ or equipment for extra ting , egetable oil hammer 

mills machinery a old for use on farm , machinery and/ or quir - ment or part therefor having a general application and u e for 

purpo e other than the use hereinabo-ve enum rated) and incln l s 

all p r. ons o engaged. 

( ) " ocle ' m ans the Col of Fair Competition f r th Iachinery an l Allie l Pr duct Indu try, a a1 proYe l by th Pr . idcnt, 

J\1ar h 17, 1934 an l a fr m tim t time amend d. 

(f) _ "Per' on ' means a natural I r on, a partn rshir a rr oration an a ociation, a tru t a truste , a tru t e in bankru1 t y a 

receiver or other entity. 

(8) 
9 

(g) "Employer" means any person engaged in this Subdivision 

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

(h) "Eniploy e 'mean any one who i employed in the Subdivision by any such Employ r. 

(i) "The Act" means Title I of the National Indu trial Recovery 

Act. 

(j) "Th President" means the Pre ident of the United States. 

(k) "Board" m ans the National In lustrial Recovery Board or 

its ucces or in office. 

(1) "Basic Code Authority" means the Code Authority for the 

Machinery and Allied Products Indu try as constituted by the Code. 

(m) "Code Autho1-ity" means the Co le Authority con tituted for 

this Subdivision as provided by the Code and by this Supplemental 

Code. 

( n) " Group Code Authority " means the Code Authority for any 

group or product classification within this Subdivision. 

(o) "Publish" means to make available to the public. 

ARTICLE III-EMPLOYMENT PRovrnro :rs 

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 writte~1 into this Supplemental 

Code. 

ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE 

The following Articles of the Code, viz: Article II, "Definitions"; 

Article VI, "Administration", to the extent that they shall be applicable to this Supplemental Code as such or as it may hereafter be 

administered as an autonomous Code; Article VIII, " Modifications 

and Termination"; and Article IX, "Withdrawal"; are hereby 

made a part of this Supplemental Code, with the same effect as if 

they were written into this Supplemental Code. 

ARTICLE V-ADMINISTRATION 

(a) A Code Authority for this Subdivision is hereby constituted 

to administer, supervise and facilitate the enforcement of the Code 

and of thi · Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. 

(b) During the period not to exceed sixty (60) days following the 

eff ctive date of this Supplemental Code, the code committee of the 

Applicant shall constitute a temporary Code Authority. The 

Board, in its discretion, may appoint one additional member (without vote and without exp nse to thi Subdivision). 

( c) Thi Subdivision, having held an lection for permanent Code 

Authority under the provisions of the Code of Fair Competition for 

the :Machinery and Allied Products Industry, the Code Authorit3 so 

elected shall constitute the first permanent Code Authority for this 

Subdivision if thi metho l of election meet with the appro,al of the 

Board. If this method of elect~on doe not meet with the approval 

of the Board then the provisions hereinafter provi led hall apply 
10 

for the election of the first permanent Code Authority. For elections 

after the fir t, the provi ion of thi Code for election of a permanent 

Code Authority shall apply. 

( d) The Applir-ant shall by at lea. t twenty (20) day written 

notice mailed to all employers ,Yho··e name Applicant ha learned 

after reas;onably dilig nt s arch, call a meeting of employers to be 

held within ixty (60 ) days after the effective date for the purpo e 

of adopting pro,.,edural rule. an l regulation for the election, oraanization and op ration of the permanent Code Authority and electing 

a permanent Code Authority which hall consist of not les than five 

(5) nor more than nine (9) member . The Board may, in it di cretion, appoint one additional member ( without vote and without :xpen e to the Indu try). The permanent Code uthority o elected 

and appointecl hall upersede the temporary Code Authority. 

( e) It being found neces ary in or ler to support the Admini tration of thi Supplemental Code and to maintain the tandards of 

Fair Competition establi he l hereunder and to effectuate the policy 

of the Act, the Code Authority is authorized: 

(1) To incur such rea onable obligations as are nece ary 

and proper for the foregoing purposes, and to meet such obligation out of funds which may be rai ed as hereinafter provided and which shall be held in trust for the purpo e of the 

Supplemental Code; 

(2•) To submit to the Board for it approval, ubject to su h 

notice and opportunity to be heard as it may deem nece ary 

(1) an itemized budget of it estimated expen e for th foregoino· purposes, and (2) an equitable basis upon which the 

funds neces ary to support such budget shall be contributed 

by employers of the Subdivi ion; 

(3) After such budget and basi of contribution have been 

approved by the Boar l, to determine and obtain equitable 

contribution a above set forth by all employers of the Sub livision, and to that end, if necessary, to institute legal proceedings therefor in its own name. 

(f) Each employer of the Subdivi ion shall pay hi or its equitable 

contribution to the expen e of the maintenance of the Code Authority, determined a hereinabove provided, and ubj ect to rule and 

regulation pertaining th rcto i u cl by the B ard. Only emplo rs 

of the Subdivision complying with the Supplemental Code and contributing to th expen es of its admini tration a hereinabove Ir -

vided, unless duly xempt d from making uch contribution hall 

be entitled to participate in the election of member of th ode 

Authority or to receive the benefi of any of it voluntar a tivitie 

or to make u e of any embl m or in ignia of the ational R Yery 

Admini tration. 

(g) The Code Authority hall neither incur nor pay any obliaati n 

ub tan ti ally in e:x:ce of th amount thereof a e timated in it a I - proY cl budget, and hall in no Y nt xc ed the total amount ontained in th approv cl bude, t ex ept ur on approYal of the B ar l · 

and no ub equent bu lo·et hall ntain any 1 fi iency it m f r c:x:-

pendil. ures in xce of prior bu lgct e timate x pt tho whi h th 

Board hall ha Ye a ppro, l. 

(h) Action by employ r in an ubclivi ion meetina for th el -

tion of Cod uthority hall be b vot of the em11 yer ntitl cl to 
11 

vote as provided in Sections ( e), ( £), (g) of this Article V a:id wl10 

are present in person or by proxy, or who have voted by mail ballot, 

each such employer to have one vote only. Action by empl yers in 

any Subdivision meeting for the adoption of procedural rul s, revisions or addition to the Supplem ntal Code, or the transaction of 

other bu iness of the Subdivi ion under this Supplemental Cod ·, 

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

to vote thereat as I rovided in Sections (e), (f), (g) Article V of the 

Suppl mental C cl and are pre ent in per on or by proxy, or who 

have voted by mail ballot, duly executed and filed with Code Authority; cast and computed in the manner provided in e tion ( 1) 

Article VI of the Code. All qu tions as to the number of vote 

which each employer shall be entitled to ca t at any meeting of ih 

employers other than the meeting held to vote for the election of the 

permanent Code Authority shall be determined by Code Authority, 

in accordance with Section ( d) Article VI of the Code. 

(i) Employer in this ubdivision having a con1mon intere t ancl 

common problem· may be grouped by Code Authority £.or admini ·-

trative purpose . There shall be a Group Code Authority approved 

or appointed by Code Authority for each such group. 

(j) If formal complaint is made to Code Authority that provisions of this Supplemental Code have been violated by any employer, 

Code Authority or the proper Group Code Authority may to the extent permitted by the Act, cau e such inve tigation or audit to be 

made, as may be deemed necessary. If such investigation is made 

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

(k) The Code Authority may appoint a Trade Practice Committee which hall meet with the Trade Practice Committee appointe l 

under such other Codes as may be related to the Subdivi. ion, for the 

purpo e of formulating fair trade practices to govern the relationships between proclucti n and di tribution employers under this Supplemental Code and under such others to the extent that such fuir 

trade practices may be proposed to the Board as amend1.1ents to this 

Supplemental Code und such other Codes. 

ARTI LE VI- Acco NTING AND CosnNG 

The Code Authority may cau~e to be formulate 1 an accountjn.,. 

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

by all employers of the Subdivi ion. After such y tem and method 

hav~ been formulat d, full detail concer11ing them shall be mad 

available to all employers. Thereafter all employers shall determine 

and/ or e timate costs in accordance with the principles of su ·h 

n1ethods. 

RTICLE VII-SELLIKG BELOW RE- ON ABLE CosT 

SECTIO~ 1. ,V11en the Code Authoritv determines that an emer- gency exists in this Subdivi ion and that the cau e thereof is destructive price-cutting snch as to ren ler ineffective or . eriou. lv en- dang r the maintenance of the proi;-j: ion of thi uppl m ntal Code 

the ode Authority may cau~e to be d termine l the lo"e t rea ,onable 
12 

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

subject to such notice and hea.ring as the Board may require. The 

Board may approve, disapprove, or modify the determination. 

Thereafter, during the period of the emergency, it shall be an unfair 

trade practice for any employer of the Snbdivision to sell or offer to 

ell any product of the Subdivision for which the lowe t reasonable 

cost has been determined at uch prices or upon u h terms or conditions of sale that the buyer will pay les therefore than the lowest 

r ea onable cost of such products. 

"\Vhen it appears that condition have changed, the Co le Authority, upon its own initiatiYe 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) second , or ( c) inventorie which mn t be converted into cash to meet emergency needs, all of which may be 

di posed of by any employer, at any pri e and on any terms or conditions, but only if such employer, not less than two weeks before 

f:'uch proposed disposal, has filed with Code Authority a statement 

in writing setting forth the facts of, and rea ans for such propo e l 

disposal and the price and terms and conditions of ale. otice 

of such disposal shall be ent immediately to all employers manufacturing products of equivalent design, character, quality or pecifi cations, who may sell uch products at prices and on terms and 

conditions as favorable as tho e stipulated in the propo ed di po al, 

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 price. and on terms and conditions as favorable as those of the 

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

Code Authority his intention o to sell, and the facts as to the comI etition which justifie such action. 

ARTICLE VIII 1-PRICE LISTS 

(a) If and when Code Authority determines that in any crroup 

of the Subdivision it has been the generally recognized practice 

to ell a specified product on the basi of net price lists, or price 

li ts with di count sheets, and terms of sale and payment, each employer engaged in the manufacture and/ or importing of such product shall, within ten (10) days after notice of uch det rmination, file with Code Authority- a net price li t, or a price li t with di -

count heet, as the ca e may be, individually prepared by him, 

showing his current prices, or price and discount , and term. of sale 

an l payment for uch specified product and Cod Authority hall 

immediately publi. h and end copie thereof to all known em1 lo ers 

who are cooperating under this Supplemental Code a d scribe l 

in Article V ( e), ( f) (g) and enO'aged in the manufacture and/ or 

importing of uch specified product. 

Revi eel price li t and/ or 1i count heet and/or term of ale 

and payment may be filed from time to time thereafter with ths 

1 See paragraph 2 (1) of orde1· appr,oving this Code. 
13 

Code Authority by any such employer, to become operative upon 

the date specified therein, but such revised price lists and/ or discount sheets and/or terms of sale and payment shall be filed with 

the Code Authority ten (10) days in advance of the operative 

date. Copies thereof, with notice of the operative date specified, 

hall be inimediately publi hed and sent to all employers cooperating 

under this Supplemental Code a described in Article V (e), (f), 

(g), any of whom may file, if he so desires, revisions of his price 

lists and/or discount sheets and/ or terms of sale and payrn.ent, 

which shall become effec.tive upon the date when the revised price 

li t and/or di count sheets and/ or terms of sale and payment fir t 

filed hall go into effect. (b) If and when Code Authority shall determine that in any 

group of the Subdivision not now selling it. product on the ba is 

of price lists, with or without discount sheet , and terms of sale 

and payment, the distriution or marketing conditions in the group 

are the same as, or similar to, the distribution or marketing conditions in a group where the use of price lists, with or without di. -

count sheets and terms of sale and payment is well recognized, an l 

that a system of selling on net price lists or price lists with di count 

sheet3 and terms of sale and payment for such specified product 

should be put into effect in such group, then each employer in such 

group shall within twenty (20) days after notice of such determination, file with Code Authority net price lists or price lists with 

discount sheets, and terms of sale and payment, showing his price , 

and discounts and terms of sale and payment, and such price lists 

and/or discount sheets and/or terms of sale and I ay1nent may be 

thereafter revised in the manner hereinbefore provided. Provided 

that Code Authority shall make no determination to place any product of the Subdivision (not now on a price li. t basis) on a pri e 

list basis, as provided in this Section unless affirmative consent to 

such determination is giYen by a two-thirds (2/2 ) vote of employers 

who are at that time cooperating under this Supplemental Code as 

described in Article V (e), (f), (g), and are engaged in manufacturing and/or importing of such product. The eligibility requirements, method, and effect of uch voting hall be the same a is 

provided by Article V. 

( c) If and when Code Authority, with the affirma tiYe consent 

given by a two-thirds (2/4) vote of the employers who are at that 

time cooperating under the Supplemental Code as de. cribed in Article V, shall determine that it is undesirable to continue the filing 

of net price lists and/ or price lists with discount sheets and/ or 

term of sale and payment on any product in respect of which such 

filing has theretofore been required, such filing shall cease and the 

proYi ions of this Article hall not apply to such product unless and 

until Code Authority shall again determine that such filing be made. 

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

what oever, any product of the Subdivi ion covered by provisions 

of this Article VIII at a different price, or on more favorable terms 

of sale and payment, than those provided in his own current net 

price lists, or price lists and di count sheets, and terms of sale and 

payment except as proYided in Article VII. 
14 

ARTICLE IX-TR.ADE PRACTICES 

Each of the following acts and practices is deemed to be inimical 

to the best interests of the Subdivision, and of the public, and each is, 

therefore, hereby declared to be, and to constitute, an unfair method 

of competition, a.nd is prohibited, viz: 

1. No employer shall secretly offer or make any payment or allowance of a rebate, refund, commis ion, credit, unearned discount or 

excess allowance, whether in the form of money or otherwise, nor 

shall an employer of the Subdivision secretly offer or extend to any 

customer any special ser vice or privilege not extended to all customers of the same class, for the purpose of influencing a sale. 

2. No employer shall give, permit to be given or offer to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee, agent, or representative of another in relation to the business of the employer of such employee, the principal 

of such agent or the represented party, without the know ledge of 

such employer, principal or party. This provision shall not be construed to prohibit free and general distribution of articles commonly 

used for advertising except so far as such articles are actually used 

for commercial bribery as hereinabove defined. 

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

display or of any other nature), which is misleading or inaccurate 

in any material particular, nor shall any employer in any way misrepresent any goods (including but without limitation its use, trademark, grade, quality, quantity, origin, size, substance, character, 

nature, finish, material, content or preparation) or credit terms, 

values, policies, services, or the nature or form of the business 

conducted. 

4. No employer shall evade the provisions of this Code by selling 

to or through any distributor who does not agree to comply with 

Articles VIII and IX of this Code. 

2 

5. No employer shall take used equipment in trade on the purchase price of new equipment nor make allowances or grant credit, 

directly or indirectly, for used equipment; provided, however, that 

in any subdivision for which there may be a Sub-Code Authority 

approved or appointed by the Code Authority in accordance with 

the provisions of Section (i) Article V hereof, the employers who 

are members of such sub livi ion may take such used machinery 

or equipment in trade on the purchase price of new machinery or 

equipment in accordance with a standard method of apprai al 

approved by such group Code Authority. 3 

6. A uniform standard of practice covering " sales of products 

when including in tallations" may be establi hed by any group in 

the industry, provided that such tan lar l of practice shall recei e 

the affirmatiYe Yote of at lea t two-third of the employer in su h 

group an l shall be approved by the Code Authority and the B ard. 

When such a standard of practice shall have been so established by 

a o-roup and o approv cl, no employer in that group shall ontract 

with purcha ers for the furnishing and in talling of equipment d - signed, manufa tured a mbl cl or offered for ale by ·uch em2 See paragraph 2 (2) of order approvin "' thi. Code. • See paragraph 2 (3) of ord r a ppr oving this Code. 
15 

ploy rs, ex ept in accordance with such standards, provided, however, that in connection with contracts with State or Federal Agencie such forms may be used as the State or Federal Agencies may 

determine. 

ARTI 'LE X-SALES Fon ExPOR1' 

The proYisions of this Supplemental Co le concerning pricing and 

marketing shall not ar ply to direct export sales of any product or 

to sales of any product destined ultimately for export. The term 

'export" shall include all shipments to all place without the several States of the United States and the District of Columbia; provided, howeve r, that no shipment to any territory or po ession of the 

United State shall be considered an export when any employer 

is engaged in the Subdivision in such territory or possession. 

ARTICLE XI-1\fomFICATIONS 

(a) This Supplemental Code and all the provisions thereof are 

expres ly made subject to the right of the President, in accordance 

with the provisions of subsection (b) of Section 10 of the Act, from 

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

or regulation issued under Title I of said Act. 

(b) Any amendments, additions, revisions, or supplements of this 

Supplemental Code, proposed by Code Authority, and authorized 

by the affirmative vote of two-thirds (2/3) of the employers shall be 

in full force and effect upon approval by the Administrator. The 

eligibility requirem.ents, method and effect of such voting shall be 

the same as provided by Article V hereof. 

AnTICLE XII-MONOPOLIES 

No proYision of this Supplemental Code shall be so applied as to 

permit monopolies or monopolistic practices, or to eliminate, oppre , or discriminate against small enterprises. 

ARTICLE XIII-EFFECTD"E DATE 

Thi Supplemental Code shall become effective and binding on all 

person engag l in the Subdivision on the eleventh (11th) day after 

its approval by the President. 

Approved Code No. 347-Supplement No. 44. 

Registry No. 1399- 56. 

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UNIVER SITY OF FLO RIDA 

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