V 

Approved ode No. 542 Registry No. 1399-29 

NATIONAL RECOVERY AD1\1INISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

USED MACHINERY AND 

EQUIPMENT DISTRIBUTING 

TRADE 

AS APPROVED ON J ANUARY 10, 1935 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

For sale by the Superintendent of Docume nts, Washington, D. C. - - - - - - - - Price 5 cents 
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 Building. 

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

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Hou ton, 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 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code o. 542 

CODE OF FAIR COlVIPETITION 

FOR THE 

USED MACHINERY AND EQUIPMENT 

DISTRIBUTING TRADE 

As Approved on January 10, 1935 

ORDER 

APPROYED CODE OF FAIR CoMPETlTION J,' R THE L SED nL\ 'Hr ERY .AND 

EQUIPl\IE ... TT DrsTRIBUTI~ a TRADE 

n application ha-ving been duly ma le pur. uant to and in full 

compliance with the provisions of Titl I of th N :...tional Indu trial 

Recovery Act, approv d June lG, 1933 for approval of a ode of 

Fair Competition for the secl Iachin ry and Equipment Di -tributing Trade, and hearbo·s having been duly held ther on an l the annexed re.port on aid Code, containing finding with r" pect thereto, 

ha Ying been ma l and directed to the Presic1ent: 

0 "\V, THEREFORE, on behalf of the Pr ident of the United 

tates the National In lustrial Re~ Yery Board, l ursuant to authority vest 0 d in it by Executive Order of the President, including 

Executive Order o. 6 59, dated Septemb r 27, 193°1 and otherwi e ; 

doe hereby incorporate by reference said ann :s:ed r port and does 

find that aid Code complie in all re pects with th pertinent pro- vi ion and will promote the policy an l purpo es of aid Title of said 

ct; and does hereby or ler that aid Code of Fair ompetition be 

and it i her by ap.prov d. 

NATIO L l NDU TRIAL RECOVERY BOARD 

By "\V. A. HARRIMAN, Administrative Officer. 

Approval recommend cl : 

H -\RRT . CARR, 

Acting Di ision Admini trator. 

" A HI~:- T N, D. 

Ja n,,ua1:1 10, 1935. 

10 G19°-14G3- 77-~5 (50 ) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House;. 

SrR: This is a report on the Code of Fair Oompetition for the 

Used Machinery and Equipment Distributing Trade of the United 

States, as revised after a Public Hearing conducted in Washington 

on the 31st day of July, 1934, in accordance with the provisions or 

the National Industrial Recovery Act. 

PROYISIONS AS TO HOURS A.ND WAGES 

A maximum of 40 hours a week and 8 hours a day is provided by 

the Code, with an additional 8 hours per week for 6 weeks in any 

26-week period to care for peak demands. One and a half times the 

regular rate is paid for all hours in excess of 40 hours a week or 8 

hours a day and on Sundays and legal holidays. No hour limitation is placed on employees engaged in emergency maintenance and 

emergency repair work or on any specially skilled employee in 

emergencies which cannot be met by the employment of additional 

n1en, but the overtime rate will apply. Watchmen are permitted 

54 hours a week. Executives and managers receiving $35 a week or 

more and outside salesmen are exempted from the hour limitations. 

A minimum wage of not less than 40 cents an hour is provided for 

all employees, except those on office staffs who will be paid at a rate 

of not less than $15 a week, office boys and girls receiving a minimum of 80 per cent of the above rate. 

CHILD LABOR 

No person under 16 year of age will be emplo,yed and no one under 18 years of age will be engaged in hazardous occupations. 

ECONOMIC EFFECT OF CODE 

This Trade, which distributes used machinery and equipment not 

covered by approved Codes, is composed of 876 concerns, employing 

3,800 persons. The total invested capital amounts to approximately 

$16,000,000 and the volume of ales in 1933 was $18,000,000. The 

40 hour week provided by the Code coupled with increased activities 

in the Trade as business improves, should result in a substantial gain 

in employ1nent. 

FINDING 

The Deputy Admini -trator in his final report to the National Industrial Recovery Board on said Code having found as herein set 

forth and on the basis of all the proceedings in this matter: 

(60) 
61 

It fin l that: 

(a) ail od i: w 11 <l _jo·11 d to promot the poli ·i s ancl I _urpo f Titl I of th National Indnstrial Recovery A t, incluclmg 

r moval f b ti:u tion · to h fr {low of int r ta.to and f r jgn 

comm re whi h t ncl to diminish th amount th r of ancl will pro-

' id for th o- n ral lfare by prom ting th organization of indu try for the purr , of op rativ a ti n amono- tracl group , 

by in lu in()' and maintaining united a tion of lab r and manao- -

m nt un l r al quate O' vernm ntal . anctions an l upervi ion, by 

liminatino· unfair omp0 titiYe pr:1 tice , by I romotin<T the full -t 

po ible utilization of th pre ent productive apacity of inclu tri ·, 

by avoiding m1due re triction of protlucti n (except a may be 

temp rarily required), by incr asino- the con umption of industrial 

an l agricultural product throuo-h increasina purcha ing power, by 

re lu ina and relievina unemployment, by improving standards of 

labor, and by oth rwi e rehabilitating industry. 

(b) aid Trade normally employs not 1nore than 50 000 employees; and is not cla ified by the National Industrial Recovery 

Board a a major industry. 

( c) The Code a approved complies in all respects with the p rtin nt provision of sai i Title of aid Act, including without limitation ub ection (a) of section 3, subsection (a) of section 7, and 

sub ection (b) of section 10 thereof; and that the applicant a ociation is a trade as ociation truly representative of the aforesaid 

trade; and that said association imposes no inequitable re trictions 

on admis ion to membership therein. 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not de igned to and will not eliminate or opp re s 

small enterprises and will not operate to discriminate against them. 

( f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Code. 

For these reasons, this Code has been approved by the National 

Industrial Recovery Board. 

For the National Industrial Recovery Board: 

J ANDARY 10, 1935. 

w. A. HARRll\IAN' 

Adniinistrative Offe,cer. 
CODE OF FAIR COMPETITION FOR THE USED MACHINERY AND EQUIPMENT DISTRIBUTING TRADE 

ARTICLE J-PunPOSES 

To effectuare the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Used l\fachinery and Equipment Distributing Trade, and shall be the standards of fair competition for 

this Trade, and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. (a) The term " Trade" as used herein includes the 

buying and ~elling, renting, and/ or the dealing in, any repairing, 

overhauling, and/ or renovatino- connected therewith done by those so 

buying and selling, renting, and/ or dealing in, used machinery and 

equipment coming within the following classifications, except as 

provided in Section 1 (b) of this Article. 

Used Chemical Machinery 

Used Rubber Working Machinery 

Used Food and Beverage Machinery 

Use l Electrical Machinery 

Used Power Generating Equipment 

Used Me.tal Working Machinery 

Used ,v ood Working Machinery 

Used Mining Machinery 

Used Railroad l\tfachinery anf1 Equipment 

(b ) This Code is not intended to cover the classes of used machinery and/or equipnient which are already covered by Codes of Fair 

Competition heretofore approved; nor to apply to manufacturers 

in the buying and selling, rebuilding, overhauling or repairing 

and/or renting of products of their own manufacture; nor to manufacturers in the selling or renting of niachinery and/or equipment 

taken in trade in part payment on the purchase of new machinery 

or equipment, or reposses ·eel becau e of non-fulfillment of con litions 

of sale. 

( c) The term " Member of the Trade" shall include tho e engaged 

in the "Trade", whether as principals, or agents, or brokers and/ or 

commission agents. 

SECTION 2. The term "Emplo3 ee '' a usecl herein inclu les anyone engaged in this Trade receiving compensation for his ervices 

therein irrespective of the nature or method of payment of uch 

compensation except a member of the Trade. 

SECTION 3. The term "Employer" as use l herein in lnde anyone by whom any such employee i compensated or employ cl. 

SECTION 4. The term "Association ' as used herein shall mean the 

National Association of Used l\'.Iachinery and Equipment Dealers. 

(62) 
G3 

marvode and all sched-

· as n ed herein sh.all mean a 

an indenture or conARTICLE III-HoURs 

E TION 1. ~ o employee hall be permitted to work in exce s of 

forty (40) hours in any one week or eight (8) hours in any twentyfour ( _.4) hour period, except as herein otherwise exp res ly provided. 

ECTIO.. 2. The provisions of this Article shall not apply to 

per on employed in a managerial, executive, or supervisory capacity 

who ure paid thirty-five (35) dollars per week or more, or to outsid alesmen. 

E TIO :r 3. The maximum hours fixed in Section 1 hereof shall not 

a,pply to any employee on emergency maintenance or emergency 

repair work involving breakdown or protection of life or property, 

or in emergencie occa ioned by the n cessity for the services of any 

pecially skilled employee which cannot be cared for by the employment of additional men; but in any such special ca e not le 

than one and one-half (11⁄2) times his regular rate shall be paid 

to each employee for all time worked in excess of the, maximun1 

hour pro-vided in Section 1 hereof. 

E TIO "4. The maximum hours fixed in Section 1 hereof hall not 

ap1 ly for ix (6) "eek in any twenty-six (26) week p riod during 

whi h ov rtin1e hall not exceed eight (8) hour in any one (1) 

week. In any such ca e not less than one and one-half (11⁄2) times 

hi r o-ular rate hall be paid to -ach emplo ee for all tin1e worked 

in ex of io·ht (8) hours in any twenl-y-four (24) hour period or 

in x e of forty ( 40) hour in any e en (7) day period. 

SE TION 5. Except to watchm n, not le than one and one-half 

(11⁄2) tim the regular rates shall be paid for all work performed 

on unday and legal holidays. 

E TIO 6. 11 hour~ work d in exc of th maxima provided in 

ection 1 of hi rticle shall be reported to the Code uthorit , 

and uch inforn1ation hall be made a ailable to the Board in such 

form and detail as it may r quest. 
64 

SECTION 7. Power plant engineers and power plant fire1nen may 

be permitted to work not in excess of forty-five ( 45) hours per week, 

provided that not less than one and one half (11⁄2) times their regular rate shall be paid to such employees for all time worked in 

excess of the maximum hours provided in Section 1 hereof. 

SECTION 8. Watchmen 1nay be permitted to work not in exce s of 

fifty-four (54) hours per week. SECTION 9. No employer shall permit any employee to work for 

any time, which, when totaled with that already performed for 

another employer or employers, exceeds the. maximum permitted 

herein. 

SECTION 10. No employee shall be permitted to work more than 

six (6) days in any seven (7) day period. 

ARTICLE IV-WAGES 

SECTION 1. No clerical or office employee shall be paid less than 

at the rate of fifteen (15) dollars per week and no other employee 

shall be paid less than at the rate of forty ( 40) cents per hour, except as herein otherwise expressly provided. 

SECTION 2. Office boys and girls may be paid not less than eighty 

( 80) per cent of the minimum wage provided in Section 1 of this 

Article, but the total number of office boys and girls shall not exceed five ( 5) per cent of the total number of office or clerical employees, provided that each employer may employ one such office 

boy or girl. 

SECTION 3. This Article establishes a minimum rate of pay, regardless of whether an employee is compensated on a time-rate, 

piece-work or other basis. 

SECTION 4. A person whose earning capacity is limited because of 

a.o·e, physical or mental handicap, or other infirmity, may be employed on light work at a wage below the minimum established by 

this Code, if the employer obtains from the State authority, designated by the United States Department of Labor, a certificate authorizing such person's employment at such wages and for such 

hours as shall be stated in the certificate. Such authority shall be 

guided by the instructions of the United States Department of Labor 

in issuing certificates to such persons. Each employer shall file 

monthly with the Code Authority a list of all uch persons employed by hin1, showing the wages paid to, and the rn.aximum hours 

of work for such employee. 

SECTION 5. Female employees performing substantially the. sam.e 

work as male employees shall receive the same rate of pay as male 

employees; and where they displace men, they shall receive the same 

rate of earning as the men they displace. The Code Authority 

shall within ninety (90) days after the effective date of this Code 

file with the Board a description of all occupations in the Trade in 

which both men and women are employed. 

SECTION 6. The minimum wage fixed in this Article shall not apply to the e.mployment of apprentice under the rules and regulations stipulated in Executive Order No. 6750-C, dated June 27, 193-!. 

The number of apprentices hall not exceed a ratio of one (1) apprentice to each ten (10) journeyman employees in the particular 

trade or occupation for which the apprentice is being trained. 
65 

TI T 7. Equitabl adjustment shall b 12romptly made in all 

wa · · an l ul ri s. ot later than nin ty (90) lay after the ff -

ti date f thi. · d acl 111 mber of the Tracle shall r port to th 

o 1 \..uth rit the a lju tm nt mad prior t or ·ub q 1 nt to tl 

nppr v,.l f thi o 1 . uch information hall be available to th~ 

ard n it r qu t. In n Cc s hall th wa 0 • or alary f any 

mpl , b r luc d. 

E TI N . Thi Arti 1 stabli h · rat of pay which hall b 

x 1111 t fr m any fin , harg , and/ or deduction by th mployer. 

E TIO 9. An employer hall make payment of all wao- due in 

lawful m-r n y r b n g tiable heck thereafter, payable on demand. Th e ,, ages hall be ex mpt from any paym nts for penion~ in uran r i k benefits other than tho e voluntarily paid b 

the wao- arn rs, or required by State laws. vVages hall be paid 

at 1 a t at th en l of v ry two-week period, and salarie at 1 a t at 

the n l f eYer month. o employer hall withhold wages. The 

employer or hi ag nt hall accept no r bates directly or indirectly 

on u h wages nor give an thing of value or extend favors to any 

p r on for the purpo of influencing rates of wage or the working 

condition of his employee . 

SE TI T 10. An mployee hall be paid at lea. t his regular rate of 

pay for all time r equired to be spent at the place of employment in 

connection with the di charge of duties of such employment. 

SEc TI N 11. No provisions of this Article shall modify established 

practices or privileges as to compensated vacation periods, leaves of 

ab ence or temporary ab ences from work heretofore granted employees. 

SECTION 12. In determining his clas ification under this Code, 

each employee shall b 0 entitled to claim the benefit of the clas ification of occupation existing on June 16, 1933. 

ARTI 'LE V-GENER.AL. LABOR PROVISIONS 

SECTI N 1. No per on under sixteen ( 16) years of age ·hall be 

employed in thi Trade, nor anyone under eighte 0 n (1 ) ars of 

age at operations or occupations hazardou in nature or detrimental 

to health. The Code uth rity shall ubmit to the Board for approval within ninet (90) day of the effective date of this ode a 

li t of u h operation or occupation . In any tate an employer 

hall be deemed to. ha Ye complied with this pro, i ion a to ao·e if 

he shall have on file a rtificate. or permit duly igned by th uthorit in u h State empo"IT"ered to issue employment or ao· c"rtificates or permit hawing that the employee is of the r quired age. 

ECTION 2. (a) Emplo e slutll have the riBht to or ·anize an l 

bargain collecti ely through repr entative of their o-wn ho ing 

a.ncl hall be free from the interfer nee r traint or coercion of emplo er of labor or th .ir ao-ents in th cl io-nation of uch r preentativ or in elf-organization . or in other oncerted acti i i 

for the purpo e of oll ctiv bargainino- or oth r mutual ail or protection. 

(b) o mr loy un l no one eeking employment hall be required a a condition f employment to join any compan uni n or 

tor frain from joinina organizing or ass· tino· a labor oro-anization 

of his o n choo ing. 0 
66 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved or prescribed by the President. 

SECTION 3. No provision in this Code shall supersede any State or 

Federal Laws imposing more stringent requirements on employers 

regulating the age of employees, wages, hours of labor, or health, 

fire protection, or general working conditions than under this Code. 

SECTION 4. Employers shall not reclassify employees or duties of 

occupations per£on11°d, or engage in any other subterfuge so as to 

defeat the purposes or provisions of the Act or of this Code. 

SECTION 5. No ern.ployee shall be dismissed or demoted by reason 

of making a complaint or giving evidence with respect to an alleged violation of this Code. 

SECTION 6. Every employer shall make reasonable provision £or 

the safety and health of his employees at the place and during the 

hours of their employment. Standards £or safety and health shall 

be submitted by the Code Authority to the Board for approval 

within six ( 6) months after the effective date of this Code. 

SECTION 7. An employer shall so administer work in his charge as 

to provide the maximum continuity of employ1nent practicable for 

his personnel. 

SECTION 8. (a) 1Vithin ten (10) lays after the effective date of 

this Code, each employer shall post and thereafter maintain, in conspicuous places acce~sible to employees full copies of this Code and 

any amendments or modifications which may later be approved. 

(b) Each member of the Trade shall comply with all rules and 

regulations relative to the posting of provisions of this Co le which 

may from time to time be prescribed by the Board. 

ARTICLE VI-ADMI:NISTTI.cl. TION 

To further effectuate the polic~es of the Act, a Code Authority is 

hereby established. 

SECTION 1. The permanent Code Authority shall consist of five 

( 5) members to he elected by m mbers of the A ~ociation and two 

(2) members to be elected by nonmembers of the Association who 

are members of the Trade if the said nona sociation members so 

desire. In the event the nonassociation members of the Trade do 

not desire to elect two (2) such members to the Code Authority, 

the Board may, in it discretion, appoint two (2) member from 

the nona ociation members of the Trade. In addition to membership as above provided there may be three (3) members, without 

vote, to be lmown as Administration members to be appointed by 

the Board to serve for such terms as it may specify. l\fornbers of 

the Code Authority elected by the Trade shall be elected to ·erve 

for one (1) year or until their succe ors are elect.eel and qualified. 

SECTION 2. (a) During the period not to exceed sixty ( 60) da} · 

following the approYal of this Code, the Board of Directors of the 

Association shall constitute a temporary Code Authority, and the 

Board may, in its di cretion, appoint one (1) additional member 

without vote. 

(b) Within said sixty ( 60) days period the permanent Code Authority shall be ele te 1 by letter ballot. Ballots hall be sent by the 
67 

mail t all kn wn memb r f the 

Tl'a l . Th aicl ball t hall ha a . uo- · t l li t f t, nty-f ur 

( 4) nain 1, · l by th B anl f Dir ct r of th o iation 

nn l Y n (7) blank I a e in wl i h additi nal na1 s may be 

ritten an 1 thi fa -t hall b all d t th at ten ti n of th . · v ting. 

0£ th tw '11 ,_f ur ( 4) u · · 'l l nam , e nt en (17) hall 

b n1 mb r h o iation and n (7) hall b n n ociati n n1 m b 1 · f h Tra l . The ball t hall d fin it ly t forth 

which f th uo· · t d na1n are nonm mbers. 

l\I mb r of th ociati n hall hav th riD"ht to vot nly for 

member of th o 1 uthority r pr nting the ociati n. onociation m mb r hall ha e the rio-ht to vote only for n na ociati n m mb r f th ode Authority. 

Each m mb r f th Trade may ca t on ballot and may vote for 

ith r hi own ch i or tho e nominated by the Board of Directors 

of the A iation. 

The aid balloting hall clo e tw nt -one (21) days aft r th date 

of mailin o· f the ballot . ot later than five ( 5) day after the 

cl ino- of the ballotincr, th ballots shall be op ned in the pre ence 

f at lea t three (3) member of the Board of Directors of the A - o iation and in the pre ence of a notary public who shall count the 

aid ballots and r cord the vote . The five (5) members of the 

As o iation receiving the largest number of vote and the two (2) 

nona ociation member receiYing the larg st number of vote hall 

be declared elected. 

(c) Within two (2) weeks after the opening of ail ballot a 

meeting shall be called by the Code Authority for the purpose of 

completing the organization of the Code Authority and carrying 

on any other bu ine s whi h may pro.perly come before it. 

( d) ub quent elections of Code Authority member hall be by 

mail balloting and in the manner specified in Sectron 2 (b) of this 

Article. 

SECTION 3. Each trade or industrial association directly r indir ctly participating in the election or activitie of the Code 

Authority hall 

(1) Impose no inequitable re triction on member hip. 

(2) Submit to the Board true copies of it articles of a sociation, 

b -law , regulation and any an1enclment when made th reto together with uch other information a to member hip, ro-anization, 

and activities a th Board may deem neces ary to effectuate the 

purpo of the Act. 

ECTIOX 4. In order that the Code uthori hall at all time be 

truly r pr entati, e of th Trade and in oth r r pects comply with 

the provi ion of tl e Act, th Board ma pre ribe nch h aring a 

it may d em prop r · and th reaft r if it hall find that th o le 

uthority i not truly repr ntatiY or do not in oth r re pert. 

mply with the r vi ion f h , may requir an • ppro1 riatc 

moclificati n of the le uth rit . ' 

E 'TI0.1. 5. N othin contain l in thi d hall c n~ itut the 

member f th o le uthority partn r for an purpo . ,.. .,.. or 

·hall any m mb r f the o l uth rity b liable in an, manner o 

any ne for an · a t of any oth r memb ~r ffi er acr nt ·or mplo ee 

of the o l Authority. :r r hall any memb r of the CoLl u-
68 

thority, exercising reasonable dilig 0 nce in the conduct of his clut:es 

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

under this Code, exc 0 pt for his own wilful malfeasance or nonfeasance. 

SECTION 6. If the Board shall at any time determine that any 

action of the Code Authority or any agency thereof may be unfair 

or unjust or contrary to the public interest, the Board may require 

that such action be su pended to a:fford an opportunity for investigation of the merits of such action and further consideration by 

such Code Authority or agency pending final action, which shall not 

be effective unless the Board approves or unless it shall fail to 

disapprove after thirty (30) days' notice to it of intention to proceed with such action in its original or modified form. 

SECTION 7. Subject to such rules and regulations as may be issued 

by the Board, the Code Authority shall have the following powers 

and duties, in addition to those authorized by other provisions of 

this Code: 

(a) To insure the execution of the pro vi. ions of this Code and to 

provide for the compliance of the Trade with the provi ions of 

the Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

( c) To obtain from members of the Trade such information and 

reports as are required for the administration of this Code. Such 

information and reports shall be filed with a disinterested agent of 

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

the Board. In addition to information required to be submitted to 

the Code Authority, members o:f the Trade subject to this Code shall 

furnish such statistical information as the Board may deem necessary for the purposes recited in Section 3 (a) of the Act to such 

Federal and State agencies as it may designate; provided that nothing in this Code shall relieve any m.ember of the Trade of any existing obligations to furnish reports to any Government agency. No 

individual report shall be di closed to any other member of the 

Trade or any other pn.rty except to such other Governn1ental agencies as may be directed by the Board. 

( cl) To use such trade as ·ociations and other agencies as it deems 

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

herein, provided that nothing herein ·hall relieve the Code Authority of its duties or responsibilities under this Code and that such 

trade associations and agencies shall at ull times be subject to and 

comply with the provisions hereof. 

( e) To make recommendations to the Board for co-ordination of 

the admini tration of thi Code with such other Codes, if any, as 

may be related to or affect members of the Trade. 

(f) 1. It being found nece sary in order to support the administration of thi Code and to maintain the standards of fair competition e tablished hereunder and to effectuate the policy of the1 Act, 

the Code Authority is authorized: 

A. To incur such reasonable obligation a are neces ary and 

proper for the foregoing purposes, and to meet uch obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purpose of the Code; 
69 

B. To ubrnit t th B ard for it a pr al, ·ubj t to u h no i e 

b h ard a it may d m n ary, (1) an it miz l bu l · t f its tirnat d _ I n i r tl f r inO' purp . s, 

and ( ) an quitabl ba i · ur n whi h h fund n . a.ry to support u h bu 1a t h 11 b on ribut l y m mb r of th Trade; . Aft r u h bu 1 ·ct and ba i f ntributi n hav n approv d b r th B ar 1, to c1 t rmine and btain qnitable ntribui n a ab et i rth by all m mb r of th Tra l , and to that end, 

if ne , r to in ·titut legal proc edino- ther f r in its own nam . 2. Ea h m mb r f th Trade shall pay bis r its equitabl con- tributi n t th xp n of the maintenan e of th Code Authority, 

det rmin a her inabo provid d an ubj t to rule and rerulation p rtainino· th reto i ucd by the B ard. Only members of 

th Trade omplyino· with the Code and contributincr to the exp n of its a lmini ~tration a her inabove provided, unless duly 

xempt c1 from making u h contribution, shall b entitled to participate in the s 1 ction of m mber of the Code Authority or to 

recei e th b n fits of any of it voluntary activitie or to make u e 

of any embl m or insignia of the National. Recovery Ad.ministration. 

3. The Co le Authority hall neither in ur nor pay any oblio-ation 

ub tantially in exce of the amount thereof as e timated in its appro ed budo-et and shall in no event exc ed the total amount con- tained in th a1 proved budget except upon approval o:i; the Board; 

and no sub equent budget hall contain any deficiency item for exp nditur in ex e of prior budg t estimates ex ept those which 

the Board ·hall have o approved. 

( o-) To re onunend to the Board any action or mea ures deemed 

ad vi able, including further fair trade practice provisions to govern 

members of the Trade in their relations with each other or with 

other trade·· measur for indu trial planning, and stabilization 

of employm nt; and inclu ling modifications of this Code which 

shall become effective as ,part hereof upon approval by the Board 

after such notice and hearino· a it may specify. (h) To appoint a Trade Practice Committee which shall meet 

with the Trade Pra tice Committees appointed under uch other 

Code as may be related to the Trade for the purpose of formulating fair trade practic s to govern the relationships b tween emplo er under thi Code and un ler such other Cod s to the end that 

uch fair trade practi e may be propo ed to the Board as amendments to thi Code and su h oth r Codes. 

(i) To appoint a Trade Practice Complaints Committee and 

tabli h the pr <:'.edure therefor ubje t to he approval of th 

Boe rd. 

ARTICLE II-TRADE PRACTI E R s 

R LE 1. Inaccurate adv Ttisfng.- memb r of the Trade hall 

publi h ad erti ing ("h her print l ra lio li play or of any 

other nature), w hi h · mi 1 aclin cr or inu ccurate in an material 

particular nor hall an m mber in an. " a mi repr ent any 

g od (in ludina but without limitation it u e rademark, grade, 

quality quantit orio-in, ·z uh t nee charact r nature fini h, 

ma erial content or preparation) or r dit t rm Yalu polici 

nice or the natur or form of th bu in conduct cl. 
70 

RuLE 2. False B illing.-N o member of the Trade shall knowingly 

withhold from or insert in any quotation or invoice any statement 

that makes it inaccurate in any material particular. 

RuLE 3. /11. ac(YUrate labeling.-No 1nember of the Trade shall 

brand or mark or pack any goods in any manner which is intended 

to or does deceive or mislead purchasers with respect to the brand, 

grade, quality, quantity, origin, size, substance, character, nature, 

finish, material content, or preparation of such goods. 

RULE 4. Def(JJ}nation.-N o n1ember of the Trade shall defame a 

competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by 

other false r epresentation, or by falsely disparaging the grade or 

quality of his goods. 

RULE 5. Threats of Law Sidts.-No member of the Trade shall 

publish or circulate unjustified or unwarranted threats of legal .Proceedings which tend to or have the effect of harassing com.petitors 

or intimidating their customers. 

RULE 6. Secret R ebates.-N o member of the Trade shall secretly 

offer or make any payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in 

the form of money or otherwise, nor shall a member of the Trade 

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 sale. 

RuLE 7. Bribing Eniployees.-N o member of the Trade 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 knowledge 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. 

RULE 8. Inducing Breach of E xisting Oontracts.-No member of 

the Trade shall by any false or deceptive means wilfully induce or 

attempt to induce the breach of existing commercial contracts to 

which any other member of the Trade is a party, or interfere with 

or obstruct the performance of any such contractual duties or services by any such means, with the purpose and effect of hampering, 

injuring or embarrassing competitors in their business. RULE 9. Ooercion.-No member of the Trade shall require that 

the purchase or lease of any goods be a prerequisite to the purchase 

or lease of any other goods. 

RULE 10. Sales on Def e'rred Pay1nent.-No member of the Trade 

shall sell or offer for sale any machinery or equipment on a deferred 

payment plan in which a reserved ecurity or property interest is 

provided, unless the terms of payment shall include a ca h payment 

of at lea t 25 % of the purchase price on delivery of the machinery 

or equipment, and provisions that the balance shall be paid within 

12 months of the date of delivery. 
71 

RuLE 11. 7cu: ·ification of m 111hrr < f th TnHle 

q11ipmrnt lm ler 

RTI LE , III-l<.J.' P<JUT TnADJ<j 

ode relating to pri ·es or t rms of · llin<Y, 

·hall a1 pl, to e.·port trad or . al . or hiprt trac1 . " ,E.·port Tra l ' hall he a · dcfin d in the 

A t adopt d I ril 10, 191 . 

ARTI LI~ II-1\IoorFI ATION 

ECTI N 1. Thi Cod an l all the provi ion th r of ar expr ly 

mad ubj ct t th rio·ht f the Pr ·icl nt, in a ·or Ian with the 

provi ion of ub tion (b) f Section 10 of the ct, from time to 

time to cancel or modify any order, approval, li en.· , rule, or re O'Ulation i ued under Title I of aid A t. 

SE TION 2. Su h of the provi ion of thi · ode a are not r quire<l. 

to be included her in by the A t may, with th approval of the 

Boar l be modifi l or eliminat <l. in uch manner as may be indicated bJ: the nee ls of the public, by changes in cir um tan e , or by 

experience. 

No provision of this Code hall be applied so a to permit monopolies or monopoli tic practices or to eliminate oppre , or discrim- inate ao·ain t m.all enterpri e ·. 

ARTICLE XI-PRICE INCRE.:c\ ES 

Wherea the policy of the A t to increa e real purcha incr power 

will be made n1ore difficult or on ummation if prices of goods and 

service increa,e as rapidly a waO' , it i .. recoo·nized that price increa e except uch a may be r equir d to meet in lividual co t hould 

be delayed, an l when made uch increa es shoul 1, <::o far a po ible, 

be limited to actual ad litional increa. e in the 11 r' ost . 

ARTICLE ..i. rII-ScoPE OF ConE 

If an employer in thi Tra le i al o an emr lo 1er in any oth r 

trade or indu -try the pro-vi ions of thi ode hall apply to and 

affect onl that part of th bu in f u h employer hich is a 

part of th Tra le cov red by this Co l . 

ARTICLE XIII-EFFECTIYE D TE 

Thi le hall become eff h,e on th ~econcl :Mon lay after the 

a pprov-al b the Board. 

Apprff, d ode ·o. 542. 

Regi try No. 1399-29. 

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