o.929-1-01 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

SHOE SHANK 

MANUFACTURING INDUSTRY I 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON FEBRUARY 21, 1934 

WE DO OUR PART 

,-

NITED STATES 

GOVERNME T PRI TI G OFFICE 

W ASHTNGTO : 1934 

For sale by the Superintendent of Documents, Was hington, D. . - - - - - - - - Prir'? 5 c nts 
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 

Atlan ta, Ga. : 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Cllambcr of Commerce Buildiug. 

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

Chicago, Ill.: Suite 1706, 201 N01·th Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building.· 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Comme1·ce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 11G3 South Broad'TT'ay. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, l\Iinn.: 213 Federal Building. 

New Orleans, La.: Room 225~A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Tru t Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office ]1uilding. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: SOD Federal Office Builclino-. 
Approved Code No. 84. Supplement No. 6 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

SHOE SHANK MANUFACTURING INDUSTRY 

As Approved on February 21, 1934 

ORDER 

PPLE~IENTARY CoDE OF F m CoMPETITIO:X FOR THE 

HOE SHANK l\1ANUFACT RING IND STRY 

A DIYI ION OF THE FABRICATED METAL PRODUCTS l\IANUFACTCTIL-G ASD 

METAL FINISHING AND METAL COATING INDUSTRY 

An application having been duly made pursuant to and in full 

complian e with the provision of Title I of the National Indu trial 

Recovery Act approved Juno 16, 1933 and in ac or lance with the 

pr vision of ection I of Article I of th Ba.sic Code for the Fabricate l Metal Products ~fannfa turing and :Metal Fini hing and 

l\Ietal Coating Industry, appro eel ovember 2, 1933, for appro-val 

f a up1 lem ntary Cod of Fair ornpetition for the hoe hank 

~lanuf~ cturing Industry· and hearings having been duly held 

th r on; an 1 the annexed r port on aid Supr lementary Co le containing finding with respect thereto having been ma le and clir ctecl 

t th Pre id nt: 

T\T TH , RE ◄ ORE on behalf of the Pr i lent of th "Gnited 'tat I Huo-h . John on clministrator for In lustrial R o-very, 

pur. uant to authorit. v t l in me by ExecutiYe orders of th Pre - id nt in ludino· E. ccutive Order . 6 43-A, dated D mber 30, 

1933 and oth rwi e · do h r by incorporate by ref r n said 

ann xed r por an l do find that ail u1 plementar. od complie 

in all r · 1 ~ with the pnrtinent pr vi ·ion. an l will pr mote the 

p li y and p 1rp . . of . fli 1 Title of ai l Act; and do h r b ord r 

that ·ail uppl m ntar d of Fair omr iti n be an l it is 

h rrb_' approYed. 

H u . J H .. • o .. · cl mini tralor /01' In.du trial Recovery. 

ApprO\~al R c mm ncl d: ,,_,,. ~ . lI RRD[AX 

Dil'i ion Administrator. 

\Y .\.' lIIXGT , . , 

F b1·ua,·y :..,1 , 193.1. 

41'171 °- 37' 11 '--:14 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lVhite Hou.se. 

Srn : This is a report on the Supplementary Code of Fair Competition for the Shoe Shank Manufacturing Industry, a division of 

the Fabricated J\ifetal Products Manufacturing and :Metal Finishing 

and Metal Coating Indu try, the hearing having been conducted 

th 0 reon in vV ashington, D.C., December 20, 1933, in accordance with 

the provisions of Title I of the J ational Industrial Recovery Act. 

GEXER.AL STATEMENT 

The Shoe Shank: l\i'Ianufacturing Industry being truly representative of thi division of the Fabricated 1\ifetal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to 

avail itself of the option of submitting a Supple111entary Code of 

fair practice, as provided for in Section I of Article VI of the Basic 

Code, for the F abricate l Metal Products Manufacturing and Metal 

Finishing and Metal Coating Industry approved by you on the 

second day o:f November, 1933. 

, , 

11ERUME OF THE CODE 

Article I states the purpo e of the Supplementary Code. 

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

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

Products Manufacturing and Metal Finishing and ~1etal Coating 

Industry and the labor provisions of its Basic Code, as approved 

N oYember 2, 1933, are the labor provi ions of this Supplementary 

Code. Article IV establishes a Sur plementa ry Code Authority consisting 

of seven (7) members who shall be selected by the members of the 

Indu try at a meetino- called by the Temporary Supplementary Code 

Authority, and gives the Administrator the authority to appoint one 

additional member without vote and provjdes .machinery for obtaining statistics and the admini tration of this Code. 

Article V sets forth the unfair trade practices of this Supplementary Code which has been especially designed to offset unfair compe- tition in this division 0£ the Industry. 

Article VI provide against monopolies and monopoli tic practices. 

Article VII contains the mandatory provj ions contained in Section 10 (b) of the Act, and al o provides for the submission of pro- posed amendments to the Supplementary Code. 

Article VIII recognizes that price increases be limited to actual 

additional increases in the sellers' costs. 

Article IX states the effectiYe date of this Supplementary Code. 

(2) 
3 

FI DI :r S 

Th i tan D puty dmini trator in hi final rep rt to m on 

ail uppl m ntary o le ha iJ.10- founu a h r in et f rth and on 

th ba i of all the procee lin s in this matt r : 

I find that: 

(a) ail upplementar od i well cl io-n d to promote the p liie and purp e of Title I of th ational Indu trial RecoYer 

in luclin · r moYal of ob tructi n o the free flow of int r tate and 

f r ign c mmer which t nd t climini h th amount thereof and 

will provide for the general ·w Hare by promoting the organizati n 

of in lu tr for the purpo e of cooperativ action amono- the trade 

roup , by in lucing and maintaining united action of labor and manao- ment un ler ad quate ;overnmental auctions and upervi ion, 

by liminating unfair competitive practice , by promoting the fulle t 

po ible utilization of the pre ent productive capacity of indu tries, 

by avoiding undue re triction of pro luction ( except a may be temporarilj required), bv increasing the consumption of indu trial and 

aoTi ultural pro luct~ throuO'h increa ing purchasing power by reducino- and relieving unemployment, by improving tan lard~ of 

labor and by othen,ise rehabilitating industry. 

(b) Sail Indu tr normally emplo not more than 50 000 emplo ee · and i not classifie l by me as a major indu tr . 

(c) The Supplementary Code as apprm eel complies in all respects 

with the pertinent provi ion of aid Title of aid Act including 

without limitation Subsection (a) of Section 3 Sub~ection (a) of 

Se tion 7, an l Sub ection (b) of Sect.ion 10 th reof; and that the 

applicant a ociation is an indu trial a. sociation truly representative 

of the afore aid Indu try· and that aid a sociation impo e no inequitable r strictions on admis ion to membership therein. 

( cl) The upplementary Code i not de igned to and will not permi monopolie or monopoli tic practice . 

( e) The u1 plementary ode i not de ignecl t and will n t elim- inate or oppre s . mall enterpri~e · and will not operate to di criminate ao-ain t them. 

(f) Tho enga ed in oth r t p of the economic proc s ha-v not 

b n lepri-vcd of the right to be heard pri r to approval of ail uppl mentary o l . 

or the e r'3a on, . th refor I lrnYe appr Yecl thi Supplem ntary ode. , 

Re p dfully, 

FEBR ARY 21 1934. 

Hu r S. JoH o 

Acl1ninistrator. 
( 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE SHOE SHANK MANUFACTURING INDUSTRY 

A DIVISIO .. ~ OF THE F ABRICATED METAL PRODUCTS MANU FACTURING AND 

l\IETAL FINISHING AND M ETAL COATING I N DUSTRY 

A RTICLE 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 F air Competition f or the Shoe Shank :Manufacturing 

Industry, pursuant to Article VI of the Basic Code of Fair Competition for the F abricated Metal Products Manufacturing and M:etal 

Finishing and Metal Coating Industry approved by the President 

of the United States on the c::econd day of November 1933, and the 

provisions of this Supplementary Code shall be the Standard of Fair 

Competition for and shall be binding upon every member thereof. 

ARTICLE II-DEFINITION ' 

Th term ' Shoe Shank Manufacturing Industry " hereinafter referred to as the " Industry " is defined to mean the manufacture for 

sale to the boot and shoe trade of steel shanks and/ or combination 

steel an :l fi bre shanks and/ or fibre shanks and/ or fibre and wood 

shanks. 

The tern1 " :Member of the Industry" includes, but without limitation, any individual, partner hip, a sociation, 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 United States, 

the National Indu trial Recovery Act, and the Administrator for 

Industrial Recovery under Title I of said Act. 

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

Basic Code of F air Competition for the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry, 

as approved by the President on the second day of Novern.ber, 1933. 

The term "Supplementary ode Authority " as used herein means 

the agency which is to administer this Supplementary Code as hereinafter proYided. 

The term "As ociation", as used herein, is defined to mean the 

Shoe Shank Manufatcturers Association or its succes or. 

The term "employer " as used herein includes anyone by ,vhom 

any nch employee is compensate l or employed. . The term "employee" as used herein includes anyone engaged 111 

the In lustry in any capacity receiving compen ation for his services, 

irre:pe ·tin' of the nature or method of payment of such compensation. 

(4) 
5 

Th trm 

Fabri at l 

a. u. l her in is <1 fin cl 1. rn nn the 

1<:ration or it. · . llt'<.' . .-or. 

Ann LE III- '-'• IPL Y~IE TT 

RTI LE IY- I, .\XIZ. TI .1.T KD nin ·r 'Tt ATI N 

1

E TIO ... 1. Durin; the p ri cl, not to exce l sixty (60) clays followin · th ffe tive clat luring which the ur plem ntary · o le nthorit. is b ing elected the ode ommit ee of th o iation :hall 

c titut a Tempornry uppl m ntary Code Authorit 7 • 

Th r hall b con. titutecl ·within the ixty (60) <la_ perio l a 

npr 1 mentary ode ul-hority con i ting of seven m mber:, to be 

el t d by the member of the Industry, as hereinafter proYi led at 

a m ctin<Y alled b th Temporary upplementar. , ocl Authority, 

upon t n (10) day noti e sent to all known memb r of the In<lu -

try who ma vote either in per on or by proxy. Them mber · of the 

uppl mentary Code Authorjty first elected shall erve until the 

:followino· annual mcetino· of the As ociation in January and thereaft r member of th npplcmentary Code uthority. hall be 1 · d 

a her inafter proYid cl at each annual meeting of th \. . ocic tion 

to :erY un il the :follo-wing annual m etina. 

Th member o:f th uppl mcntary ode nth rity 6hall be 

el t l in the :follo~·ino- manner : 

(a) Fi, m mb 1" who shall at the tim of el cti n be m mb rs 

f th A.-. ·o iation by a majo ·ity Y te of all member of the Incln ·try 

I re. nt in I r on or b. pr xy a h member to have on vote. 

(b) Two membe . who ar not at the time of lection memb rs 

of th \.. - O iation b T a majori . T vote of all known m m er. f the 

In<ln:-;try, pre. ent in per on r by proxy ea h m mber to h a Ye one 

y 
6 

istrator and send them. in such form as the President and/ or the 

Administrator may require to the Fabricated Metal Products Federation, or successor organization as the agency administering said Basic 

Code. 

SECTION 3. The Supplementary Code Authority, through its confidential agent, shall also, from time to time, furnish to the Basic 

Code Authority, designated in said Basic Code, such information 

as may be required to be furnished under the terms of said Basic 

Code. 

SECTION 4. Nothing contained in this Supplementary Code shall 

constitute the members of the Supplementary Code Authority partners for any purpose. Nor shall any member of the Supplementary 

Code Authority be liable in any manner to anyone for any act of any 

other member, officer, agent or employee of the Supplementary Code 

Authority. Nor shall any member of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties 

hereunder, be liable to anyone :for any action or omission to act under 

this Supplementary Code, except for his own wilful misfeasance or 

non-feasance. 

SECTION 5. The Supplementary Code Authority shall have all the 

powers and duties which shall be necessary or proper to enable it to 

fully administer this Supple1nentary Code and to effectuate its 

purpose. 

Without limitation to the foregoing or any other powers or duties 

provided for in this Supplementary Code the Supplementary Code 

Authority shall have the following specific duties : 

(a) To adopt by-laws and rules and regulations for, and keep 

records of its procedure and for the administration of the Supplementary Code. 

(b) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Supplementary 

Code Authority of its duties or responsibilities under this Supplementary Code and that such trade associations and agencies shall 

at all times be subject to and comply with the provisions hereof. 

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

other code , if any, as may be related to the industry. 

( cl) The Supplen1entary 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 Industry, subject to rules and 

regulations of the Administrator in regard to compliance. 

( e) Each member of the Industry shall pay to the Association as 

the agent 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 and operation of the Supplementary Code Authority in connection with its activities relative to the administration of this Supplementary Code; said proportionate share to be based upon the 

net sales and/or other equitable factors as the Supplementary Code 

Authority may prescribe, subject to the approval of the Administrator. 
7 

E 'TI _T G. If the mini trator hall d t rmine that any action 

of a c l an horit or an ao· n y ther of may b unfc ir or unjust 

or ontrary to the I ublic int r t, h dn ini. trator may require 

tha uch a tion be u pend l t affor 1 an opportuni y for investiati n of th meri of u h ac ion an 1 further con ideration by such 

o 1 anthorit or ng n . I n ling final action whi h hall not be 

ffe ti\ unl 0 the lmini trator ar prove r unle s he hall fail 

to ii "', I pr ve after thirty da ' notic to him of intention to I roceed 

with n h a tion in i original or modified f rm. 

E TIO .. - 7. Each trade r indn trial as ociation directly or indirectly particii atino· in the s 1 ction or acti-vitie. of the Supplementary ode Authorit hall (1) impo e no inequitable re trictions on 

aclmi ion to member hip, and (2) nbmit to the Admini trator true 

copie of it article of a soc1ation, b '-la" . regulations, and any 

amen lment when made thereto, too·ether with , uch other information as to member hip, organization an l acti,itie as the Aclminis- tra tor may deem nee ~ ary to effectuat the purpo ·e· of the Act. 

"E Tm-- . In order that the Co le Authoritv hall at all times be 

trulv representative of the industr and in other r e pect comply 

with the pro,isions of the Act, the Admini. trn.tor ma prescribe such 

hearino-. a he may leem proper; and thereaft r if he shall find that 

the ~upplementar , ode Authority is not truly representative or 

doe not in other re -·pect comply with the provi ion of the Act he 

may make an appropriate modification or modification in the 

method of election of the Supplementary Code A.uthority. 

\.nncLE "\ - KF _\.IR TRADE PnA TICE 

l ron 1 
8 

disposal has filed with the Supplementary Code Authority his statement in writing, setting forth the fact of, reasons for and t€rms of 

such proposed disposal. 

(c) Nothing in Article V of this Supplementary Code shall apply 

to sales between members of the Industry, provided, however, no 

sales shall be made below cost . 

. ( d) Sales quotations shall be based on units of one thousand (1000) 

pieces. 

(e) A cash discount not exceeding two (2) percent m.ay be allowed 

on all purchases where the invoice is paid not later than the fifteenth 

of the following month and no other terms or di counts shall be 

allowed unless agreed upon by a majority vote of the members of 

the Industry. 

( £) No member of the Industry shall accept the return of any 

shoe shanks from any shoe manufacturer except for mistake of the 

shipper or faulty construction in the merchandise not in accordance 

with the purchaser's specifications. 

(g) All merchandise shall be sold either f.o.b. factory or f.o.b. 

destination with freight allowed. 

(h) All invoices shall plainly specify the quantity and the description of the material used. 

( i) No split commission or any kind of bonus shall be given to 

any manufacturer or his agent in order to procure orders. 

(j) No member of the Industry for the purpose of influencing a 

sale shall offer or make. any payment or allowance of a rebate, refund, 

commission, credit, unearned discount or exce s allowance, whether 

in the form of money or otherwise, nor shall a member of the Industry offer or extend to any customer any special service or privilege 

not extended to all cu tomers of the same class. 

ARTICLE VI-MoNOFOLrns 

No provision of this Supplementary Code shall be so applied as to 

permit monopolies or monopolistic practices or to. eliminate, oppre s 

or discriminate against small enterprises. 

ARTICLE VII-MODIFICATIONS 

SECTION 1. This Supplementary Code and all the prov1s10ns 

thereof are expressly made subject to the right of the President, in 

accordance with the provisions of sub-section (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. 

SECTION 2. By presenting this Supplementary Code, the members 

of the Industry do not thereby consent to any modificn.tion thereof, 

and they reserve the right to object to any modifications without 

being given an opportunity to be heard. 

SECTION 3. The Supplementary Code, except as to prov1s10ns required by the Act, may be modified or amended on the basis of experience or changes in circumstances, such modifications or amendments to be based upon application by the Supplementary Code 

Authority or other representative group within the Industry to the 

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

✓ 
9 

t b com eff tiY "n l be a part of thi upr 1 m ntury r, tl on 

1.11 pr Yal by th Pr i l nt an 1/ r the lmini. trut r. 

ARTC 'LE \ II- Pnr 'E N REA 

ARTICLE IX-EFFECTIVE D ATE AXD D R.\TION 

Thi Supplementary Cod hall become effectiYe at 12: 01 \.M. 

o clock on the t nth day after it is approved by the Pre ident and 

hall continue in ffe ·t, until June 16, 1935, or the earliest late prior 

thereto on which the President shall, by proclamation, or the onshall, by joint re olution, declare that the emergency recognized 

ection 1 of the National Industrial RecoYery Act has ended. 

pproYed Code No. 84, upplement No. 6. 

Regi~try 'o. 929-1-01. 

0 
U IJIVERS ITY OF FL O RIDA 

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