Approved Code No. 84-Supplem nt No. 24 Rcgi try No. 1104-07 

, 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR C·OMPETITION 

FOR THE 

WOOD SCREW 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON MAY 10, 1934 

WE DO OUR PAR'r 

.., -~.-

lA' ".,. __ .. 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

tl 

• 
• 

This publication is for sale by the Superintendent of Documents, Gov rnment 

Printing Office, Washington, D.C., an(l by district offices of the Bureau of 

Foreign nnd Domestic Ccmmerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atla nta, Ga.: :-:o-! Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, "jia. ~· .: 18{)1 Cu.·tombouse. 

Buffalo, N.Y.: Chamb r of 0 mmerce Building. Cllarle. ton. S.C.: Cl1amber o£ Commerc Building. 

Chicago, I ll.: Suite 170{3, 201 North ·w ellN Street. 

Cle;elancl, Obi o: hamber of Commerc . 

Dallas, 'l'ex. : hamber of Commerce Duildinr-. 

D2troi t, l\Iicll. : 01 Fir t National Bunk Building. 

Houston. 'I x. : h, mber of Commerce Building. 

Indianapoli.·, Ind. : Chamber of Ccmmerce Building. J acksonYille, Fla. : Chamber of Commerce Building. Kansas City, l\Io.: 1028 Baltimo1·e Avenue. 

Los Angele.~, Calif. : 1163 South Droadway. Louisvill , Ky. : -:!08 Federal Building. :l\1emphis, Tenn. : 229 Fe-deral Buildino·. 

T\1inneapoli , :\linn. : 213 Federal Building. 

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

I ew York. N.Y.: 734 Cu tomhouse. 

Norfolk, Va.: 40G East Plume Street. 

Philadelphia , Pa. : 422 Commercial Tru t Building. 

Pittsburgh, Pa. : Chamber of Commerce Duilding. Portland. Oreg. : 215 Ne\' Post Office Building. St. Louis, Mo.: 506 Olive Street. 

San Fran isco, Calif.: 310 Cu . tomhou e. Seattle, Wash .: 809 Fed ral Office Building. 
Appro d od To. 8 -Supplement o. 24 

S PPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WOOD SCREW MANUFACTURING INDUSTRY 

As Approved on May 10, 1934 

ORDER 

APPROYL ~a UPPLEl\IENTARY ConE OF FAIR CoMPETITION FOR THE 

\Y oD SeRE\\ :i\1ANUFA nr o INDUSTRY 

A. Dl\I IO OJ! THE FAJ3RI ATED J\IETAL PROD CTS MANUFACTURING AND 

l\IETAL FIXI..,HING AND METAL COATI J Q IND TRY 

An application havina been duly made pur uant to and in full 

omplian with the provi ions of Title I of the N a.tional Industrial 

Recoy r · Act approved June 16 1933 and in accordance with the 

provi ions of Section 1 of Article VI of the Basic Code for the 

Fabricated fetal Products Manufacturing and IVI tal Fini hing 

and ]\fetal oatin5 Indu try approved November 2, 1933 for ap- proYal of a upplem ntary Code of Fair Competition for the \Vood 

Screw Nianufacturino· Industry, and hearing having been duly held 

thereon· and the annexed report on sai 1 Supplementary Code, ontainina findino- \Yith re I ect thereto, having been made and lirected 

to the Pre iclent : · 

NO\V THEREFORE, on hehalf of the Pre ident of the United 

State I Huo·h . John on, Admini trator for Indu trial Recovery, 

pur uant t authority ve ted in ma by Exe utive Or 1 rs of the 

Pr ident in luding Executive Order No. 6543-A dat d December 30 1933, and therwi e · do her by incorporate by refcren e aid 

ann xed rep rt ani do find that said Supplementary ode complies 

in all r p ts with the pertinent provi ions and will I romote he 

poli and purpo es f aid Title f aid Act· and d hereby order 

that aid UI plementar Code of Fair mnpetition be an l it is 

h r b apr rov c1 · provi l d, ho" ver, that the provi ion of rtic1e 

V ection 2 in ofar a th y pre cribe a waitin perio i bet""een the 

filina with the C de Authority (or u h ag n y a rna b d ignate l in th od ) and the ffective date of pri li t , a ri inally 

filed and/ or r vi d pric li t or revi eel term an l n hti n · of 

ale b an th y her b ar taye l p ndina m further Or l r. 

H Gil . JOHN OJ. 

Ad11~ini tTator· fo·r I ndustrial Recovery. 

Approval r c mm ncl l: 

A. R. LAN y 

Di •i ·io-n ~1dmini h'ator. 

\ HL' OT 

~fay 10 1. 34. 

5 131 °----J{4 02----04 (1) 
REPORT TO THE PRESIDENT 

The PnESIDEl~T, 

The TVhite I-iottse. 

Sm : This i · a report on the Supplementary Code of Fair Competition for the \iV ood Screw Manufacturing Industry a Division of 

the Fabrica.tecl l\1etal Products JVIanufacturing and :Metal Finishing 

and ~1etal Coating Industry, the hearing having been conducted 

thereon in \IV ashington D.C., February 2, 1934, in £Lcordance with 

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

GENERAL STATEMENT 

The \V ood Screw 1fanufacturing Industry, being truly repre.sentatiYe of this division of the Fabricated Metal Products Manufacturing 

and l\1etal Finishing and Metal Coating Industry, has elected to 

avail itself of the option of submitting a SupplBmentary Code of 

Fair Competition, as provided fur in Section 1 of Article VI of the 

Basic Code, for the Fabri ated Metal Products 1\!Ianu:facturing and 

Metal Finishing and }\fetal Coating Industry approved by you on 

the Second day of No-vember, 1933. 

RE IE OF THE CODE 

Article I states the purpose of the Supplementary Cole. 

Article II accurately dei1nes specific terms employed in the Supplementary Code. 

ArticlB III: This Industry j. a di-vision of the Fabricated :Metal 

Products Manufacturing and Metal Finishing and l\1etal Coating 

Industry and the labor provisions of its Basic Code, as appro-ved 

No-vember 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establishes a Supplementary Code Authority consisting 

of fi-ve ( 5) m-ember to be elected by the members of the Indu try 

at a meeting called by the Temporary Supplementary Code Au- thority, and gi,"es the Adn inistrator the authority to appoint one 

additional member without vote and pro-vides machinery f r obtaining tatistic and the administration of the Supplementary Code. 

Article V provides for methods of setting n1 and reYising price 

lists. 

Article VI outline p1ohibition of sales below rea ·onable co t. 

Article v1I set forth the unfair trade pra' bees of this Supple- mentary Ood which has been e ·pecially de ·i<me l to off. et unfair 

competition in this division of the Industry. 

Article VIII provides against monopolies an l monopoli tic practices. 

Article IX ontains the mandatory pro-vision.· ontained jn Secti n 10 (b) and 8lso pro-vides for the submi::ssion of propo eel amendments to the Supplementary Code. 

(2) 
3 

be limited to actual addiduration of thi upplemcntary 

FINDINGS 

The Deputy Administrator in his final report to me on said bnpplementnry Code haYing found as herein set forth and on the basis 

f all the proceedings in this matter : 

I find that: 

(a) Said Supplementary Code is well designed 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 proYide for the general welfare by promoting the organization 

f industry for the purposes o£ cooperative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervision, 

by eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity o£ industrie...,, 

by avoiding undue restriction o£ production (except as may be temorarily required), by increasing the consumption o£ industrial and 

agricultural products through increasing purchasing power, by relucing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

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

with the pertinent provisions of said Title o£ said Act, including 

without limitation Subsection (a) o£ Section 3, Subsection (a) o£ 

Section 7, and Subsection (b) of Section 10 thereof; and that the 

applicant group is an industrial association truly representative o£ 

the aforesaid Industry; and that said association imposes no jnquitable restrictions on admission to membership therein. 

( c1) The Supplementary Code is not designed to and will not 

permit monopolies or monopolistic practices. 

) The Supplementary Code is not desjgned to and will not 

liminate or oppress small enterprises and will not operate to dis· 

riminate against them. 

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

not been deprived o£ the right to be heard prior to approYal of said 

upplemcntary Code. 

Tor these reasons, therefore, I have approved this Supplementary 

ode. 

Respectfully, 

1L~Y 10, 1934. 

HuaH S. JonNsoN, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE WOOD SCREW MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

METAL FINISHIKG 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 vVood Screw Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair 

Competition for the Fabricated Metal Products Manufacturing and 

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

Pre ident on the 2nd day of November, 1933; the provisions of this 

Supplementary Code shall be the standards of fair competition for 

such Industry and shall be binding upon overy member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The ter11s "President", "Act" and "Administrator", 

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

States, the National Industrial Recovery Act, and the Administrator for Industrial Recovery under said Act. 

SECTION 2. The term " \Vood Screw " as used herein, is defined to 

mean all screws not exceeding No. 30 screw gauge in diameter, or 

six inches in lengtJJ., having a wood scr w thread and wood screw 

head, and a slot, or its equivalent, designed for driving with a screw 

driv r and including drive screws with full or semi-slots, but excluding so-called sheet metal screws. 

SECTION 3. The term "product" means and includes 'iV oocl Screws 

as that term is defined herein. SECTION 4. The term "Industry" means and includes the bu iness 

of manufacturing \Vood Screws for sale. SECTION 5. The term "member of the industry" as used herein, 

includes, but without limitation, any individual, partner hip, association, corporation, or other form of enterprise, engaged in the 

industry either as an employer or on his or its own behalf. . SECTION 6. The term "employee" as u. eel herein includes anyone 

engaged in the Indush·y in any capacity receiving compensation for 

his ser-vice , irrespective of the nature or method of payment of such 

compensation. SEcTION 7. The term "employer" as used herein includes anyone 

by whom any such employee is compen ated or employed. SECTION 8. The term " Basic Code " as used herein is defined to 

mean the B.asic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and Metal Finishing and JYietal Coating 

(4) 
5 

n11 ro 1 b · th Pr icl nt n th 2nd clay f ov mber, 

ARTl LE III-EMPLOYMENT PRo r roN 

pr -

luly 

·ucce · r. 

d herein is 

tate · \V od 

i d fine l to 

Thi Incln r is a clivi ion of the Fabricated :Metal Proehl ts 

l\1anufa turing and Y.fetal Fini bing and Metal Coating I ndu try 

and th wage hour and labor provi ion in Article III of it ba ic 

·ode a approved by th Pre ident November 2 1933 in lu lin a c- tion 1 f aid Article III by which the pro vi ion of nb ec ion (1), 

(2) and (3) of e tion 7 (a) of Title I of the Act are made nclit.ion of thi · Cole are pecifically in orporated herein and rna l a 

part hereof a the ''"ag hour and labor provi ions of thi upplementary o le. 

ARTI LE IV-ORGA .... "IZATI N AND Ao nNr TRATION 
6 

(a) Four ( 4) members who shall be members of the Industry 

elected by a majority vote of the members of the Bureau present in 

person or represented by proxy, each member to have one vote; 

(b) One (1) member who is not a member of the Bureau elected 

by majority vote of the members of the Industry, present in person 

or represented by proxy, each member to have one vote; 

(c) In addition to the above the Administrator may appoint one 

(1) representative without vote and without expense to the Industry 

unless the Supplementary Code Authority agrees to pay such expenses, to serve on said Supplementary Code Authority in the administration of this Supplementary Code. Said representative shall 

be given reasonable notice of all meetings of the Supplementary Code 

Authority. 

A vacancy in the membership of the Supplementary Code Author- ity may be filled by majority vote of the remaining members of the 

Supplementary Code Authority, but it shall be in such manner as to 

maintain its repre entat ve character as provided in this Section. SECTION 2. Any Ar.:. ·ociation/ Institute and/or Bureau directly or 

indirectly participating in the selection or activities of the Supple- mentary Code Authority shall (1) impose no inequitable restrictions 

on membership, and (2) submit to the Admini trator true copies of 

its Articles of Association, By-laws, Regulations and any amendments when made thereto, together with such other information as to 

membership, oro-anization, and activities a the Administrator may 

deern necessary to effectuate th purpo es of the Act. 

SECTION 3. In order that th Supplementary Code Authority shall, 

at nll times, be truly representative of the Industry and in other 

respect · comply with the provisions of the Act, the Administrator 

may prescribe such Hearings as he may deem proper; and, thereafter, if he shall find that the Supplementary Code Authority is 

not truly representative or does not in other r espects comply with 

the provisions of the Act, may require r emoval of any or all of the 

member· thereof and/ or may make an appropriate modification or 

modifications in the method of selection of the Supplementary Code 

Aut hority. 

SECTION 4. The Supplementary Code Authority is hereby constituted the agency to administer the provisions of this Supple- mentary Code and to collect and distribute all statistical reports of 

the Industry. vVith a view to keeping the President informed as 

to the observance or non-observance of this Supplementary Code, 

said agency shall collect, through the Secretary, such statistics as 

called for by the President and/ or the Administrator and send them 

in such form as the P resident and/ or the Administrator may requ~re 

to the F abricated Metal Products Federation, or successor organization, as the agency administering said Basic Code. All individual 

reports shall be treated as confidential by the Secretary and shall not 

be disclosed to any member of the Industry or any other party except 

where necessary in the enforcement of this Code and except to such 

governmental agencies as may be directed by the Administrator. 

SECTION 5. Said Agency shall also from time to time f urnish 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. 
7 

SECTION 6. Th upplementary Code Authority shall have power 

from tim to tim to require each member of the Industry to fur- ni h to the Secretary such information concernino· the production, 

hipment , sal and ord r of uch member and the hours of labor, 

rat of pay and other condition of "'mployment at the plant or 

pla.nt of uch member and such other information as the said Supplem ntary Code Authorit shall deem necessary or proper in order 

to eff ct.uate the purpo es of this Supplementary Code and the policy 

of the Act. All individual reports shall be treated as confidential 

by the Secretary and shall not be disclo ·eel to any member of the 

indu try or any other party except where nece ary in the enforcement of this Code a.nd except to such o-overnmental agencies as may 

b directed by the Administrator. 

SECTION 7. The Supplementary Code Authority may require that 

any such information be furnished periodically at such times as it 

shall specify and may require tha~ any or all information furnished 

be sworn to or otherwise certified or authenticated as it shall precribe. Failure of any member of the Industry promptly to furnish to the Secretary information required by the said Supplementary Code Authority and substantially in the form prescribed by it 

shall on titute a violation of the Code. The Supplem.entary Code 

Authority shall not require any information regarding trade secrets. 

SEcTION 8. Any or all information furnished to the Secretary by 

~ n corporate member of the Industry specifically assenting hereto 

pursuant to the provisions of the Code shall be subject to verification b_v an examination of the pertinent books, accounts and records 

of such member by the Secretary or by any accountant or account· 

ant or other per on or persons designated by the Supplementary 

Code Authority (none of whom shall be connected with any 1nember 

of the Industry) and shall be so checked for such purpose, if the 

SuJ plementary Code Authority shall require it. The cost of each 

such examination shall be treated as an expense of administering the 

Code. 

SEcTION 9. All members of the Industry are subject to the jurisdiction of the Supplementary Code Authority; shall be entitled to 

participate in and share the benefits of the Supplementary Code 

Authority~ hall be entitled to vote in the selection of the SuppleInentary Code Authority as provided in Section 1 of this Article; 

flncl . hall pay to the Secretary as the agent of the Supplementary 

Code Authority their reasonable hare of the expenses of the Admini tration of this Supplementary Code, such reasonable .:::hare to be 

determined 1 y the upplementary Code Authority, ubject to review b. the Admini trator, on the basis o·f volume of business and/or 

such other factor a may be deeme 1 equitable by the Supplementary 

Code Authority. 

SECTION 10. Nothing contained in thi Supplementary Code hall 

be deemed to constitute the member of the Supplementary Code 

Authority partner· for any purp e whatsoev r. Jor shall any 

member of the 'upplemcntary Code Authority be liable in any 

mann r to anyon for any act of any other member offic r agent or 

employ e f the Supplementary Code Authority. Nor sha.ll any 

member of th Suppl menta.ry ocl Authority, xerci ing rea onable dilig nee in th onduct of his dutie hereunder, be liable to 
8 

anyone for any action or omission to a t under this Code, except for 

his own willful misfeasa nce or non-feasance. 

SECTION 11. The S11 pplementary Code Authority may adopt, subject to the ap proval of th Administr ator, and thereafter all members of the Industry sh nJl maintain , uniform cr edit terms. Such 

credit term sh all clearly appear on all quotations, contracts, 

invoices and acceptance of orders. 

SECTIO 12. If any member of the Industry as defined herein is 

also a member of any other I ndustry, the provisions of this Code 

shall apply to and affect only that part of his business which is 

included in the Industry. 

SECTION 13. The Supplementary Code Authority shall without 

any limitation on the f oreaoing have the following further general 

powers and duties subject to such rules and regulation as the Administrator may pre. cribe : 

(a) To in ure the exe uti on of the provisions of this Supplementary Code and p rovide for the compliance of the Industry with 

the pro vi ions of the Act; 

(b) To adopt by-la'v and rules and regulations f or its procedure 

and for the administration of the Supplementary Code ; 

(c) To obt ain fr om members of the Indu.stry such information 

and reports as ar e r equired f or the administration of the Supplementary Code. In addition to information required to be submitted 

to the Supplementary Code Authority, all or any of the persons subject to thi Supplem ntary Code shall furnish such statistical information a. the A dministrator may deem necessar y for the purpose.s 

recited in Recti on 3 (a) of the Act to such Federal and State agencies 

as the Administrator may designate. Provided that nothing in this 

Supplemen tary Code shall relieve any member of the Industry of 

any existing obligations t o furnish r eports to any government agency. 

(d) To use such trade ~ ociation and other agencies as it deems 

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

herein, provided tha~ nothing herein Qhall relieve the Supplementary 

Code Authority of its duties or re ponsibilities under this Supplementary Code and that uch trade as ociations and agencies shall at 

all times Le subj ect to and comply with the provisions her eof; 

(e) T o make recommendations to the Administrator for the coordination of the administration of this Supplementary Code with such 

other codes, if any, as may be r elated to the Industry; 

(f) T o secure .from members of the Industry an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Supplementary Code .Authority and its activities ; 

(g) T o cooperate with the Administrator in r egulating the n.se 

of any N.R.A. insigni a solely by tho. ·e members of the Industry who 

have assente l to, and ar c complying with, this SuprJementary Code; 

(h) T o r ecommen l to the Administrator further fair trade practice provisions to govern members of the Industry in their relations 

with each other or with other industrie · and to recommend to the 

Administrator measnre.s .for industrial planning, including stabilization of employment. 

SECTION 14. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency th r of is unfajr or 

unjust or contrary to the public interest, the Admini ·tl·ator may 
9 

require that such action be suspended io nfl'on1 an opportunity for 

inYestigution of the merits of such action. Further action by such 

upplementary Code ~\..uthority or agency garding the matter complained of may be taken if vpproYed by the ~\dministrator but shall 

not be taken if disapproved by the Administrator within thirty days 

of notice to him of intention to proceed "ith such action. 

nTICLE Y-PmcE Lr:::;T· 

ECTION 1. The Supplementary Code Authority may require that 

each member of the Industry who manufactures and sells any 

product of the Industry not used by himself in the manufacture of 

another product, shall publish ancl file "ith the Secretary a net price 

list andjor a price list and discount sheet individually prepared by 

him sho\\ing his current prices and/or prices and discounts, and 

other conditions of sale, including discounts for yarious classes of 

customers or for quantity. Said price list andjor any revised price 

list shall be made available to all interested parties. 

ECTIOX 2. The Secretary shall immediately send copies thereof 

to all other members of the Code. Such price lists, discounts, an 

onditions may be revised frorn time to time thereafter, and notific~

tion of such reYision shall be published and filed with the Secretary. 

uch re\ision shall be deemetl filed 1\ithin the meaning of this provision when telegraphic acknowledgment of receipt of such revision 

hall haYe been receiYecl by the person making snch revision, and 

copies of such revisions shall be immediately sent by the Secretary 

to all other members of the Co<.le, \\ho thereupon may file, if they 

esire, re\isions of their price lists, discount~, and conditions which 

may become effectiYe upon the dn.te \\hen the reYisecl price data first 

filed shall go into effect or at a later specified c1ate.1 

SEcTiox 3. No member of the Industry shall sell directly or intlirecily through an affiliated company, or otherwise, by any mean 

-n-hatever any product of the Industry at n price lower, or at disaunts grt>ater- or on conditions more faYorable to the buyer than 

hose pro·ride:cl in his current price data file<.1 with the ~ecretary n 

aboYe provided; pro;:ir1ecl, however, that at any time a member of 

the Inclu ~try may meet the lawful price, ancljor conditions of any 

ompetitor for products of an eqnal grade or r1uality. Any snd1 

meeting of a lawful price by a member of the Industry must ln 

reported nt once Ly ~nr-h member to the Secretary. An '· affiliated 

mpany ·· for ihr purpos0 of thi.., section means a company the majority of who:-e vobng stcck is O\vnec1 or controlled by a member of 

the Indu::.try. Ln·wful price for the purposes of this Section is (1efinec1 to mean any price which a member of the Industry may malpursuant to this Code, or any price which a competitor of any 

111embcr of the Imlustry may muke \Yithont violating any proYision 

f any Code or Codes to which f:nch competitor is subject or without 

Yiolnting ~ny Federal La\Y, Sbte Law, or the.• L~lw of any political 

.mb-clivision thereof. 

~E< '1 Tt 1X 4. X o prm·ision of this Code relating to prices or tP.rm 

f ... .ellin!:!. -.,hippin~t ()" m·nln,ting shall apply to export tra<.le or sale 
10 

or shipments for export trade within the meaning of the word 

" export trade " as it is used in the Export Trade Act. 

ARTICLE VI-SALES BELow REASONABLE CosT 

Notwithstanding any other provisions of this Supplementary Code, 

when the Supplementary Code Authority determines that an emergency exists in this Industry, and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger 

the maintenance of the provision of this Supplementary Code, the 

Supplementary Code Authority may cause to be determined the lowest reasonable cost of the products of this Industry, such determination to be subject to such notice and h earing as the Administrator 

may require. The Administrator may approve, disapprove, or 

modify the determination. Thereafter, during the period of the 

emergency, it shall be an unfair trade practice for any member of 

the Industry to sell or offer to sell any products of the Industry for 

which the lowest reasonable cost has been determined at such prices 

or upon such terms or conditions of sale that the buyer will pay less 

therefor than such lowe t reasonable cost of such products. When it appears that conditions have changed, the Supplementary 

Code Authority, upon its own initiative or upon the request of any 

interested party, shall cause the determination to be review d. 

ARTICLE VII-UNFAIR PRACTICES 

SECTION 1. For all purposes of this Supplementary Code the fol- lowing described acts shall constitute unfair practices. Such unfair 

practices shall be deemed to be unfair methods of competition in 

commerce within the meaning of the Federal Trade Commission 

Act as amended, and any member of the Indu try who shall directly 

or indirectly through any officer, employee, agent or representative 

use or employ any of such unfair practices shall be guilty of a 

violation of this Code : 

A. The provisions of Article V paragraphs B to G inclusi' e of 

the Basic Code are a part of this Supplementary Code to the same 

extent as though here repeated and set forth at length. 

B. The sale or exchange of any product in whole or in part below 

the cost of such product to the particular member of the Indu try, 

such co-t to be computed according to a cost formula to be prescribed 

or approved by the Suppl mentary Code Authority and approved 

by the Admini trator; 

Provided, however, that dropped lines, seconds or inventories 

which must be converted into cash to meet emergency needs may be 

eli po, eel of in such manner and on uch terms and conditions as are 

necessary to move such products into buyers' hands notwithstanding 

any other provisions of this Code, provided, the Secretary shall have 

been notified, at least ten days in advan~,.;e, of such intended sale or 

other disposition and of the description, quantity and price thereof 

with the reason therefor. Provided, further, that selling below cost (as defined in paragraph 

1 of this subsection B) to meet existing competition on products of 

equivalent desiQTI, character, quality or specifications shall not be 

deemed a violation of this Article. 
11 

. Using or substituting any material superior in quality to that 

pecified. by the purchaser of an:f product, for the pm:pose of influencing purchase or future purchase. 

D. Cancelling in ·whole or in part, or p::rmitting the cancellation 

in ''hol<' or in part, of any contract of sale of any product except 

for justifiable cause or a fair consideration. 

E. Inducing or attempting to induce the breach of any prO\'ision 

of a contract to \Thich a member of the Code is a party. Thi 

clause shall not be construed to apply tD contract of employmenu. 

F. Aiding or abetting any person, firm, association or corporfl -

tion in any unfair practice . 

. Offering or gi ing to any purchaser of any product any 

uaranty or prot€ction in any form against decline in the market 

price of such product after the date of shjpment. 

H. Selling or offering to sell special Wood Screws below the lawful 

price of the corresponding or the next larger or longer standard or 

listed size \Yood Screw determined in accordance with the proYioions of Article V hereof, plus the cost of the special feature or 

features. 

I. Soliciting by any member o£ the Industry the pooling of order 

from seYeral buyers in a manner to give the buyers advantage of 

more faYorable price or terms than those to which the buyers would 

be entitled individually. 

J. ~faking contra cts of sale that permit the buyer to cancel andjor 

proYide for a reunced price in eYent of a market decline, but \'{hich 

do not permit the seller to cancel andjor do not pro\ idc for an enhanced price, in the enmt of a market rise. 

K. l\Iaking contracts requiring deliYery of specified qnantity or 

quantities in specified time, if demanded by buyer, but not requiring 

~he buyer to accept such quantity or quantities within the specified 

time. 

L. :Jfnking contracts at a specified price for an unspecified quantity 

for cleliYery as demanded by the buyer during the period, unless the 

contract is for n fixed percentage of the total consumption requirenwnts of the purchaser of the particular product and unless it is 

agreed in such contract that specifications placed during the last 

third thereof shall not exceed the total pieces specified for shipment 

durjng the flr:::ot two-thirds thereof; or making any such unspecified 

quantity contract a hove cle;-;cril.Jed except on a stan <lard form or form 

ap proYecl hy the Supplc111entary CoLle Authority and the Allministrator; ()t' failing to file 'vith the RL·cretary a copy of each and eYery 

c1ifft•n llt form of contract entered into bv a member of the Industry 

dthin fiyc days after ~ntering into a cm.ltract jn such form. 

l\f. )f:,king contrads for periods in excess of three' months (all 

:ontrn.< ts to expirC' not lat0r tha11 the last clays of l\larch, ,J nne, Sept.embrr nr Deremb0r) nr l(llOtlng on or making any qnartcrly contract 

mure th nn thirty (:W) d:1ys prior to the first day of the calendar 

qu<ll't<'r to\-Prerl by th .. l'Oni.rart, or shipping pur::;twnt to any contrart mnrr than fifteen ( L">) clays after the expiration thereof, or a 

~·)Oll thereaft<'r as seller can manufacture and ~hip the same, or making contrarts rontaini112; an option of extension or r<'ne,Tal on the 

p.art of either buyer or f:ellrr. 

~ ""fi'cring any article b~· price or ot rwi~e In n manner to Influ ~ncc the purchase of another nrticL. 
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0. Appointing, continuing to euploy or paying a commissiOn, 

salary or any othe1· fo11n of compensation to a jobber or d aler, or 

. ynch cate buyer of nny character as an agent, except under circumstances where such jobber, dealer or Ryndi ate buyer act clearly a an 

agent and doe not simultaneously perform the functions of a job· 

ber, dealer or syndicate buyer in a pecific transaction or transactions; 

provided, however, that any jobber or dealer who was an agent of 

and performing such dual fun tion for a. particular m mber of the 

Industry on July 1, 19::32 may be continued by such member a such 

agent if such member files 1vith the Secretary a list of all uch agents 

within five clays after the effective date of this Cole. 

P. Continuing to employ any salesman, agent or employee who 

hall give any Ol' all of his commi sion to any purchaser. 

AnTICLE VIII-MoNOPOLIES 

No pro vi ion of thi Supplementary Code shall be applied so as to 

permit monopolies or monopolistic pra tices, or to eliminate, oppre s 

or di criminate against small enterprises. 

ARTICLE IX-MODIFICATIONS 

SECTION 1. This Supplementary Code and all the provi ions thereof are exprw·sly made ubject to the right of the President, in 

accordance with provi ions of c::ub ection (b) of Section 10 of the 

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

licen. e, rule or regulation iss1,1ecl under said Act. 

SECTION 2. Thi Supplementary Code, except a to provisions required by the Act, may be modified or amended on the basis of 

experience or change in circumstances, such modifications or amen lment. to be based upon application by the Supplementary Code 

Authority or other r epresentative group within the Industry to 

the Admini trator and such Notice and Hearing as he shall specify 

and to become effective and be a part of this Supplementary Code 

on appro' a.l by the Admini trator. 

ARTICLE X-PRICE INCREASES 

\Vherea. the policy of the Act to increase real purcha ing power 

will be made more difficult of consummation if price of goods and 

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

increase except as may be required to meet individual co ts should 

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

be limited to actual additional increases in the seller's costs. 

ARTICLE XI-EFFECTIVE DATE 

Thi.s Supplementary Code shall become effective at 12: 01 o'clock 

A.M. Ea tern Standard Time of the tenth day after it is approved 

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

the earliest date prior thereto on which the President shall, by proclamation, or the Congress shall, by joint resolution, declare that the 

emergency recognized by Section 1 of the Act, has ended. 

Approved Code No. 84-Supplement No. 24. 

Registry No. 1104-07. 

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UNIVER SITY OF FLORIDA 

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