Approved Code No. 84 Supplement No. 2 Registry No. 1107-02 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENT ARY 

CODE OF FAIR COMPETITION 

FOR THE 

HAND CHAIN HOIST 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Product& 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON JANUARY 30, 1934 

WE DO OUR PART 

\ 

f ,. (" ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superin!endent of Documents, Washinl,!ton, D.C. - - - - - - - - Price 5 cents 

V 
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(II) 
Approved Code No. 84. Supplement No. 2 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HAND CHAIN HOIST MANUFACTURING 

INDUSTRY 

As Approved on January 30, 1934 

ORDER 

APPROVING SUPPLEMENTARY CODE OF FAIR 

COMPETITION 

FOR THE 

HAND CHAIN HOIST MANUFACTURING 

INDUSTRY 

A Division of the Fabricated Metal Products Manufacturing and Metal 

Finishing and Metal Coating 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, and in accordance with the 

provisions of Section I of Article VI of •the Basic Code for the 

Fabricated :Metal Products :Manufacturing and Metal Finishing 

and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the Hand 

Chain Hoist :Manufacturing Industry; and hearings having been 

duly held thereon; and the annexed report on said Supplementary 

Code, containing finding "·ith respect thereto, having been made 

and directed to the President : 

NO"\V, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the 

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

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

annexed report and do find that said Supplementary Code complies 

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

policy and purposes of said Title of said Act; and do hereby order 

36961°-313-163-34 (1) 
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that said Supplementary Co le of Fair Competition be and it is 

hereby apr roved · provided, however, that the provi ions of Article 

V, Se tion 2, insofar as they prescribe a waiting period b twee 1 

the filing with th Cod Authority (i.e., actual receipt by the ode 

Authority) and the if cti,·e dat of revi eel I rice li t or revi d 

terms and conditions of sale be and th y are hereb stayed for a 

period of .-jxty clays or pen ling the completion of a stud now b ing 

conducted l.iy th ational Recovery Administra ion, and at the 

end of su h perio l said provisjons shall b com cffe tive unl s I, 

by my further Or ler, therwise determine. 

HUGH . J II. 0 , 

Adniinistrator /01· I ndust'rial Recovery. 

Apr ro "al Recommended : 

,v. J • H1 RRil\IAN, 

Division Adm,inistrator. "TA 'IIINGT0.1· , D.C., 

January 30, 1934. 
The PRESIDENT, 

The White House. 

Srn: This is a report on the Supplementary Code of Fair Competition for the Hand Chain Hoist Manufacturing Industry, a division 

of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conduc~ed 

thereon in Washington, D.C., December 16, 1933, in accordance with 

the provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATE1\IENT 

The Hand Chain Hoist Manufacturing Industry, being truly 

representative of this division of the Fabricated Metal Products 

Manufacturing and :Metal Finishing and Metal Coating Industry, 

has elected to avail itself of the option of submitting a Supplementary Code of fair practice, as provided for in Section I of 

Article VI of the Basic Code, for the Fabricated Metal Products 

Manufacturing and l\1etal Finishing and Metal Coating Industry 

approved by you on the second day of November 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supplementary Code. 

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

Products Manufacturing and l\1etal Finishing and Metal Coating 

Industry 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 the five ( 5) members of the Board of Trustees of the Hand Chain 

Hoist Institute, Inc., or its successor and one member chosen from 

the Industry by the vote of the members thereof, and gives the 

Administrator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the 

administration of this Code. 

Article V sets forth the fair trade practices of this Supplementary 

Code which has been especially designed to effect fair competition 

in this division of the Industry. 

Article VI contains the mandatory provisions contained in Section 

10 (b) of the Act and also provides for the submission of proposed 

amendments to the Code. 

Article VII provides against monopolies and monopolistic practices, and recognizes that price increases be limited to actual additional increases in seller's costs. 

Article VIII statBs the effective date of this Supplementary Code. 

(3) 
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FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplementary Code havino- foun l as herein set forth and 

on th ba is of all th proceeding in this matter: 

I find that: (a) Said Supplementary ode is w 11 designed to 

promote the policies and purpose of Title I of the ational Indu trial Recovery Act, inclu<lng removal of ob tructions to the free 

flow of inter tate and foreign commerce which tend to dimini ·h the 

amount thereof and will provide for the o-eneral welfare by promoting the organization of indu try for the purpo e of ooperative 

a tion among the trade groups, by inducing and maintainina unit d 

action of labor and management under ad quate governmental unctions and supervi ion, by eliminating unfair competitive practice , 

by promoting the fulle t pos ible utilization of the pr sent I ro luctive capacity of indu trie , by avoidino- undue restriction of pr -

duction ( except as may be t mporarily requir d) by increa ing the 

con umption of industrial and agricultural product throu ·h increasing I urchasing power, by reducing and relieYing unemployment, by improving tandards of labor, and by otherwi e rehabilitatino- indu try. 

(b) Said Industry normally employs not more than 50 000 mploy e and is not cla ified by me a a major indu try. 

( c) The Supplementary Code as approved comr lies in all r perts 

with the pertinent provisions of said Title of aid Act in luding 

without limitation Sub ection (a) of Section 3, Sub e ti n (a) of ection 7, and Sub ection (b) of Section 10 thereof; and that the applicant a sociation is an industrial association truly repre entative of 

the aforesaid Industry; and that aid association impo es no inequitable restrictions on admi sion to membershiJ? th r in. 

( d) The Supplementary ode i not designed to and will not 

permit monopolies or monopolistic practic s. 

( e) The Supplementary Code is not de igned to and , ill not eliminate or oppre s small enterprises and will not operate to di riminate against them. 

(f) Tho e n aged in other step of th economic pr c have not 

been deprived of the right to be heard prior t appro al of aid 

Supplementary ode. 

For th e r a ons, therefore, I have appr ved thi uppl m ntary 

Code. 

Re pectfully, 

JAN ARY 30, 1934. 

Huon . ,T n 

Adlniinistrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HAND CHAIN HOIST MANUFACTURING INDUSTRY 

A Division of the Fabricated Metal Products Manufacturing and Metal 

Finishing and Metal Coating Industry 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for The Hard Chain Hoist 

Ivfanufacturing Industry, pursuant to Article VI of the Basic Code 

of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved by 

the President of the United States on the second day of November 

1933, and upon approval by the President of the United States the 

provisions of this Supplementary Code shall be the Standard of 

Fair Competition for and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

The term " The Hand Chain Hoist Manufacturing Industry ", 

hereafter referred to as the Industry, means and includes the manufacture or purchase of component parts for assembly and for sale, 

of all types of hand chain hoists. 

The term "Member of the Industry", 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. 

The terms " President ", "Act ", and "Administrator " as used 

herein shall mean respectively the President of the Unit€d States, 

the National Industrial Recovery Act, and the Administrator, of 

Title I of said Act. 

The term " Basic Code " as used herein, is defined to mean the 

Basic Code of Fair Competition for the Fabricated Metal Products 

Manufacturing and Metal Finishing and ifetal Coating Industry, as 

approved by the President of the United States on the second day of 

N o,cmber 1933. 

The term " Supplementary Code Authority" as used herein means 

the agency which shall supervise the administration of this Supplementary Code. 

The term " Institute " as used herein, is defined to mean The Hand 

Chain H oist Institute Inc., or its succes or. 

The term "Federation" as used herein, is defined to mean The 

Fabricated Metal Products Federation, or its successor. 

(5) 
6 

ARTICLE III- EMPLOYMENT PRm 1. IONS 

This Industry is a iivision of the Fabricated 1\1 tal Products 

:Manufacturing and l\1etal Finishing and l\1etal Coating In iu try and 

the labor provisions of its Ba ic Code a approved by the President 

of the United State are the labor provi. ion of this Supplementary 

Code. 

ARTI LE I 7-0RGANIZ ~TION AND DMh,.I TR TIO.r 
7 

plementary Code and it is hereby designated as the agency £or ad- ministering, supervising, and promoting the observance of the provisions of this upplementary Code, and shall have power to obtain 

from all members of the Industry such reasonable and pertinent 

data as may be nece ary for the administration of the provisions 

of this Supplementary Code. The request for reports :from members 

of the Industry hall not be made in any manner which will impose 

unequal obligations upon members of the Indu try. 

b. The Supplementary Code Authority shall have power to investigate on its own initiative or on complaint, the operation of the Supplementary Code and any alleged violation of the Supplementary 

Code by any member of the Indu try; to make findings of fact and 

to state it conclu ions as to whether or not there ha been any violation of any pro1'ision of the Supplementary Code, and except as 

hereinafter provided, to take such steps as it 1nay deem neces ary or 

advisable, within the provisions of the Supplementary Code, subject 

to rules and regulations by the Administrator. 

c. No member of the Supplementary Code Authority shall participate, as a mern.ber of such Supplementary Code Authority, in any 

proceedings in which he is interested as the complainant or respondent or in which he is in any other manner directly interested, and 

in the event of any such di qualification, the remaining members of 

such Supplementary Code Authority shall certify such disqualification, together with the reasons therefor and shall promptly designate a person to sit as a special member of such Supplementary Code 

Authority for the purpo e of such proceedings. 

d. The Supplementary Code Authority may delegate any of its 

duties to such per on or per ons, committee, or committees, as it may 

select; provided, that it shall not delegate any of its duties to any 

person who is subject to disqualification, as in paragraph "c" above 

provided; and provided further, that such delegation shall not relieve 

the- Supplementary Code Authority from any of its responsibilities 

under this Supplementary Code. 

e. The Supplementary Code Authority may, ubject to the approval of the Administrator, upon finding by a three-fifths vote, that 

the re pondent a senting n1.ember of the Industry has violated this 

Supplementary Code assess all costs in connection with such investigation and disposition of such complaint against aid re pondent 

assenting member of the Industry. If any assenting member of the 

Industry makes a formal complaint to the Supplementary Code 

Authority which proves, after investigation by the Supplementary 

Code Authority and approval by the Administrator, to be without 

foundation in fact, then the Supplementary Code Authority may 

assess against the assenting member of the Industry bringing such 

formal complaint all costs in connection with the investigation and 

disposition of such complaint. All assessments to be paid into the 

treasury of the Institute as the agency of the Supplementary Code 

Authority. 

f. Each member of the Industry subject to the jurisdiction of 

this Supplementary Code shall pay to the In titute as the agency of 

the Supplementary Code Authority his or its proportionate share of 

the amount necessary to pay the cost of assembling, analyzing and 

publication of such reports and data and of the maintenance of the 
8 

Supplementary Code Authority in connection with its activities 

relative to the administration of this Supplementary Code; said 

proportionate share to be based upon the volume of business and/or 

such other factors as the Supplementary Code Authority maJY 

prescribe. 

g. A meeting of the Members of the Industry may be called and 

held at any time by order of the Supplementary Code Authority or 

members of the Industry having the right to cast at least 51 % of 

all votes which might be cast at such a meeting. At least five days' 

notice to each member of the Industry shall be given. 

h. Each member of the Industry who assents to and complies with 

the provisions of this Supplementary Code, and who is not delinquent in the payment of any as es ments made under the provi ions 

of this Supplementary Code, shall be entitled to ca t one vote, either 

in person or by proxy, in writing, duly exe uted by such member of 

the Industry, and filed with the Supplementary Code Authority 

, ithin a reasonable time prior to the time set for the meeting, at all 

meetings of the members of the Industry. 

SEc. 6. The Supplementary Code Authority shall have the following further powers and duties: 

a. To adopt bylaws and rule and regulations for its procedure and 

for the administration and enforcement of the Supplementary Cod . 

b. To make recommendations to the Administrator for the coordination of the administration of thi Supplementary Code with 

such other Codes as may be related to the Industry. 

c. To cooperate with the Administrator in regulating the use of 

any N.R.A. insignia solely by those member of the Industry who 

have assented to, and are complying with, this Supplementar 

Code. 

d. To recommend to the Administrator further fair trade pra ti 

provisions to govern members of the Industry in their relation with 

ea h other or with other industries and to recommend to the Adminj trator mea ures for industrial planning, including tabilization f 

employment. 

e. To re ommend from tim to tim tandar l of hipm nt t rm . 

f. To recommend from time to tim tandard for guarant n 

product . 

EC. 7. othing contained in thi upplem ntar 

titute the memb rs of the Suppl m ntary d 

for any purpo ; n r hall any m mber of th 

uthority b liable in any mann r to an on 

oth rm mb r offi r ao- nt, r mploy f th npplem ntary 

uthorit . r hall an m mb r of th upplem ntar. 

th rit x r i ino· r a nabl dili o-cn in th n u t f hi 

h r un 1 r be liabl to an ·on f r an a ti n r mi ion t a un 1 r 

thi. npplern ntar cl .- 1 t f r hi willful n i f a an 

non f a. ·an e. 

. f th n f 

th • up1 1 rn nlar ] Auth rity r any ag n } th r f i unf.1ir 

r unjn t or ·ontrar. to th I ubli int r . L th ... mini trat 

r ·qnir that .·u ·h action s11.·1 ncl •<1 for a 1 ri 1 f not t <' ·<1 

thirty (30) <ln · to aITor 1 an pportunit · f r inv . bo-ati n f . Ul'h 

• 
9 

action and further consideration by such Supplementary Code Authority or agency, pending final action, which shall be taken only 

upon approval by the Administrator. 

ARTICLE V-U NF AIR TRADE PRACTICES 

For all purposes of the Supplementary Code, any member of the 

Industry who shall, directly or indirectly, through any officer, employee, agent, or representative, violate the following provisions 

of this Article, shall be deemed guilty of unfair trade practice and a 

violation of this Supplementary Code. 

SECTION 1. Each member of the Industry shall use an adequate cost 

accounting system which shall conform to the cost accounting system 

recommended by the Supplementary Code Authority and approved 

by the Administrator as hereinafter provided. The Supplementary 

Code Authority shall recommend for use in the Industry a uniform 

and adequate cost accounting system which shall be adaptable to the 

cost accounting procedure and to the business of the Indu try. Such 

plan shall specify the factors which shall be included in determining 

the costs of each member of the Industry. Upon approval by the 

Administrator of such a system of cost accounting for the Industry, complete advice concerning it shall be distributed by the Supplementary Code Authority to all members of the Industry. Thereafter 

each member of the Industry shall file with the agent designated 

under Article IV, Section 1, of this supplementary Code his costs 

for typical items of the products of the Industry offered for sale by 

him. Thereafter no member of the Industry shall initiate a selling 

price below his own cost, or sell the product of the Industry at such 

price or upon such terms or conditions of sale as will result in the purchaser's paying for such product less than the cost of that member 

of the Industry who has filed the lowest cost; provided, however, 

that any member of the Industry may sell below his own costs to 

meet existing competition, when such prices have been filed in accordance with Section 2 of this Article; and provided, further, that 

the Supplementary Code Authority may approve, subject to disapproval by the Administrator, the sale of surplus stocks below such 

costs where necessary to relieve financial emergencies. A detailed 

record of such surplus stocks shall be filed with and checked by such 

impartial agency as the Supplementary Code Authority may designate at the time of application for such approval. 

SEc. 2. Each member of the Industry shall publish and file with 

the Supplementary Code Authority within ten days after the eff ecti ve date of the Supplementary Code, price lists individually prepared by him of all products offered for sale or sold by him and all 

terms and conditions of sale relating thereto. Such price lists shall 

state for each grade and kind of each product sold or offered for 

sale, one price with appropriate discounts therefrom, if any allowed, 

for sales to classified types of purchasers. Such price lists and terms 

and conditions of sale so filed with the Supplementary Code Authority shall be open to inspection at all reasonable times by any 

interested party. Revised price lists or revised terms and conditions 

of sale, if made, shall be filed from time to time thereafter with the 

Supplementary Code Authority by any Member of the Industry; 
10 

provided, however, that such revisions shall be filed with the Supplementary Code Authority ten days in advance of the effective date 

thereof; and, provided further, that any other member of the Industry may file revisions of his price lists or terms and conditions of 

sale to meet the revisions first filed which may become effective on 

the date when the revised price lists or revised terms and conditions of sale first filed shall become effective. At the time of filing 

price lists or discount sheets, in accordance with this paragraph, 

each Member of the Industry shall furnish the Supplementary Code 

Authority, for distribution, such number of copies of his price lists 

and/ or discount sheets and any revisions thereof, as the Supplementar:_y Code Authority may prescribe.1 

SEc. 3. No member of the Industry shall sell or offer for sale any 

product of the Industry at prices other than the prices noted in 

its price lists, or terms and conditions of sale other than the terms 

and conditions of sale previously filed by such member with 

the Supplementary Code Authority in accordance with the provi ions 

of Section 2 of this Article and in effect at the time of su h sale. 

SEC. 4. The following paragraphs describe and shall constitute 

unfair method of competition: 

a. (1) To publish advertising (whether printed, radio, di play or 

of any nature) which is misleading or inaccurate in any material 

particular, nor shall any member in any way misrepresent any good 

(including but without limitation, its use, trademark, grade, quality, 

quantity, origin, size, substance, character, nature, finish material 

content, or preparation) or credit term , value , policie , service or 

the nature or form of the business conducted. 

(2) To make disparaging statements re pecting the busine methods, practices, or products of another member of the Industry. 

b. To knowingly withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

c. To brand or pack any goods in any manner which is intend d 

to or does dee ive or mislead purchasers with re pect to the brand 

grade, quality quantity, origin, size substan haracter natur 

fini h material, content, or preparation 0£ u h crood . 

d. To publi h or circulate unjustified or unwarrant d threat f 

l cral pro e ling which tend to or have th eff t of harra inO' 

p titor or intimidatinO' their cu tom r . Failur to pro u in u 

cour shall b e-, id nee that any u h thr at i unwarrant d or unju tified. 

e. To allow or mak pa 1m nt r allowan 

c mmi sion, credit un arn cl E ount x 

f r u tom r ad, rti inO' atal o-u r ill aitima 

wh h r in th form of m n y r th rwi 

th Indu tr e r tl ff r r nd t an 

rvi or pri il g n t :xt n l d t all u 

f r th purpo f infiu n in<T a al . 

f. T hip d 

cl fin l b th 

1 e paragraph 2 of onl r apprnvlng thl ode. 
11 

proval of the Administrator, where peculiar circumstances of the 

Industry require the practice. 

g. No member of the Industry shall attempt to induce a breach of 

an existing contract between a competitor and his employee, ( other 

than €mployment contracts), or customer or source of supply; nor 

shall any member interfere with or obstruct the performance of such 

contractual duties or er-vices. 

h. To offer or extend a guarantee against decline or advance in the 

selling price of products. 

i. To agree to liquidate, purchase, or accept shipment of a competitor's product from a custom0 r, in order to sell member's own 

product. 

j. To authorize the return of product for a credit, where known to 

be obsolete, or where sales record of preceding year indicates lack of 

marketability. 

k. To post-date an invoice. 

I. To extend protection against price advance or decline of products through the signing of requirement contracts. 

m. To make an allowance for all or any portion of transportation costs, except where transportation charges are figured as a part 

of the original costs and are included in the selling price. 

n. To enter into any agreement to assume responsibility for consequential damages and other items of expense which normally cannot 

be anticipated in original costs or selling prices. 

SEc. 5. Exp·ort T1·ade.-N o provision of this supplementary Code 

relating to prices or terms of selling, shipping, or marketing, shall 

apply to export trade or sales or shipments for export trade. Unless and to the extent that the Supplementary Code Authority shall 

otherwise determine, the sale of any product by any member of 

the Industry for direct shipment to Alaska, the Philippines, Hawaii, 

or Puerto Rico or other insular possessions of the United States 

of America shall not be deemed export trade. 

ARTICLE VI-M:oDIFICA TION 

SECTION 1. This Supplementary Code and all the prov1s10ns 

thereof are expressly m.ade subject to the right of the President, in 

accordance with the provisions of sub- ection (b) of Section 10 of the 

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

license, rule, or regulation issued under the said Act. 

SEc. 2. By presenting this Supplementary Code the m.embers of 

the Industry do not thereby consent to any modification thereof, and 

they reserve the right to object to any such modifications without 

being given an opportunity to be heard. 

SEc. 3. This Supplementary Code, except as to provisions required 

by the Act, may be modified on the basis of experience or changes 

in circumstances, such modification to be based upon application to 

the Administrator and such notice and hearing as he shall specify; 

and to become effective on approval. by the Administrator. 

ARTICLE VII-GENER.~L PROVISIONS 

SECTION 1. No provision of this Supplementary Code shall be 

applied so as to permit monopolies or monopolistic practices, or to 

eliminate, oppress, or discriminate against small enterprises. 
12 

SEc. 2. Whereas the policy of the Act to increase r eal purchasing 

power will be made more difficult of consummation if prices of goods 

and services increase as rapidly as wages, it is recognized that price 

increases except such as may be required to meet individual cost 

should be delayed, but when made such increases should, so far as 

possible, be limited to actual additional increases in the seller's 

costs. 

SEc. 3. This Supplementary Code hall not affect patent rights. 

ARTI LE VIII-DuRATIO OF S PPLEMENT.ARY CooE 

Thi · Supplementary C de shall become effective at 12: 01 a.m. 

o'clock on the tenth day aft r it i a1 proved by the President and 

shall continue in e:ff ct, until June 16, 1935, or the earliest date 

prior thereto on ·which the Pre ident hall, by proclamation, or 

the Congress shall, by joint resolution, de"lare that the emergency 

recognized by ection 1 of the ational Indu trial Recovery Act 

has ended. 

Approved Code No. 84-Supplement No. 2. 

Registry No. 1107- 02. 

0 

UNIVERS ITY OF FLORIDA 

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