Approved Code No. 397 Registry No. 1341-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COl\'IPETITION 

FOR THE 

SPRAY PAINTING 

AND FINISHING· EQUIPMENT 

MANUFACTURING INDUSTRY 

' - . 

• 

AS APPROVED ON APRIL 19, 1934 

'WE DO OUR PART 

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UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193, 

) 

I I I 

For &ale by the Superintendent of Documents, Washintton, D.C. - - - - - - - - Price 5 cents 

V 
This publication is for sale by tbe 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, Gl.: 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Bo ton, l\Iass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

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

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

CleYeland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

H ouston, 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 Buildi.ng. 

Minneapolis, Minn.: 213 Federal Building. 

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

ew York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Pl1iladelphia, Pa.: 4~2 ommercial Tru t Building. 

Pittsburo-b, Pa.: Chamber of Commerce Buildiug. 

P ortland, Oreg.: 215 New P ost Office. Building. 

St. Louis, Mo. : 506 Olive Street . • □ Franci ·co, Calif.: 310 Customhou e. 

eattle, Wash. : 809 Federal Office Building. 
Approved Code No. 397 

CODE OF FAIR COMPETITION 

FOR THE 

SPRAY PAINTING AND FINISHING EQUIPMENT 

MANUFACTURING INDUSTRY 

As Approved on April 19, 1934 

ORDER 

APPROVING CoDE OF FAIR COMPETITION FOR THE SPRAY PAINTING AND 

FINISHING EQUIPMENT MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Spray Painting and Finishing Equipment 

Manufacturing Industry, and hearings having been duly held thereon 

and the annexed report on said Code, containing findings with respect 

thereto, having been made and directed to the President: 

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

State ·, I, 1--Iugh 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 Code complies in all respects with the 

pertinent provisions and will promote the policy and purposes of 

said Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved; provided, however, that 

the provi ion of Article IX, Section 1, paragraph (b) insofar as 

they pre cribe a waiting period between the filing of price lists and 

the effective date of revi ed price lists or revised terms and conditions 

of ale be and they are hereby sta.yed for a period of sixty ( 60) days, 

or pending my further Order. 

HUGH S. JOHNSON, 

Aclrninistrator for Industrial R ecove1"!J. 

Approval recommended: 

A. R. GLANCY, 

Division Adm,inistrat.or. 

APRIL 19, 1934. 

53948°--482-111-34 (317) 
REPORT TO THE PRE IDE T 

The PRE IDENT, 

The White House. 

Sm: This is a report on the Code of Fair ompetition for the 

Spray Painting and Finishing Equipment 1anufacturing Indu try 

as revised after a Public Hearing held in Washington on the 15th 

day of December 1933 according to the provi ~ion of the ational 

Industrial Recm·ery Act. 

PROYI IONS AS TO HOURS AND WAGES 

Employment i limited to 8 hours per day and 40 hour per week 

with the exception of those employ ~ engaged in emergency maintenance, or emergency repair work but to provide for ea onal demands, tolerance i permitted for 6 weeks in an 26 , eek period. 

Firemen truckmen and shipping clerks are allo-n-ed a tolerance of 

10 percent in hours. '\Vatchmen are not permitted to work in xce 

of 56 hour per week. 

Time and one-half is paid for any work in exce of 8 hours per 

day or 40 hours per week. 

finimum wage are tabli hed at 40 cents for male and 35 cent 

for females. Clerical employees shall not be paid le~.s than 15.00 

per week. 

ECONOMIC EFFECT OF THE CODE 

The Industry ha been establi hed for le than 2- years. The 

principal u e of the products of the Indu try is in .he pra; ing of 

paints and lacquers. 

It i e timated the Indu try mployed during it peak in 1929 

approximately 1100 employee . Thi dropped to approximat ly 50 

in 1933. The Indu try has been operatino- at an aYeraae of -10 hour 

a week since the adoption of the Pre ident' Reemplo} ment ... o-reement o that additional mployment an only be ob ained throu ·h 

gen ral re umption of business. 

It is e timated that under the wag rate e tabli h cl by th o<l , 

the wag of th Indu try will be rai d to the 1929 1 v 1. 

FI DI TC 

The Deputy lmini trator in hi final r l ort t m n , aid od 

ha,·ino- found a~ h r in et forth and n th ba i f all the I roe dinas in thi matt r; 

I find that: 

(a) aid 1 1. w 11 design d to pr m t the p li i and purpo e of Titl I of th ational Indn trial R cov r , t in ludin<Y 

r moval of b tru ti n to the fr fl , of inter ·tat and for ign 

(31) 
319 

c mmerce which tend to dimini h the amount thereof an 1 will provide for the general welfare by promoting the ora-anization of industry for the purpose of cooperati e action among the trade group : by 

inducing and maintaining united action of labor and managem nt 

unrler adequate a-overnmental sanction and uperYi ion, by eliminating unfair competitiYe practice by promotino- the fulle t po sible 

utilization of the pr ent producti, capacity of indu tries by avoiding undue re triction of production ( except a may be temporarily 

required) b increa ing the con umption of industrial and agricultural product through increasing purcha ing po-n-er by reducing 

and relieving unemployment by improving tandard of labor, and 

bv other-n-i e rehabilitating industr . 

(b) aid Indu try normally emplo3 s not more than 50,000 employee · and i not classified by me as a major indu try. 

( ) The Code as approved complies in all r e pect with the pertinent provisions of said Title of said Act, including -n-ithout limitation Sub ection (a) of Section 3, Sub ection (a) of Section 7 and 

ub..,ection (b) of Section 10 thereof; and that the applicant association is an indn trial a ociation truly r epresentative of the aforesaid 

Industry ; and that said association impose no inequitable restrict.ion on admission to membership therein. 

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

or monopolistic practice . 

( e) The Code is not designed to and will not eliminate or oppress 

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 rea ons this Code has been approved by me. 

Re pectfully 

APRIL 19 1934. 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR co:MPETITION FOR THE SPRAY PAINTI G AND FI.r ISHING EQUIPME T l\1ANUF ACTURING 

lNDUSTRY 

ARTICLE I-P TIPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are establi hed as a Code of 

Fair Competition for the Spray Painting and Finishing Equipment 

l\1anufacturing Industry, and shall be the standards of fair competition for uch Industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

The term ' Spray Painting and Fini hing Equipment 11anufacturing Indu try", as used herein, includes the manufacturing and/or 

a emblino- for sale of pray painting and finishing equipment units 

and of compon nt and repair parts and accessories of such units by 

manufacturers or assemblers of such units, and uch related branches 

or subdivisions thereof as may from time to time be included under 

the provi ·ions of this Code, except uch equipment as may be specifically included under another or other approved Code or Code . 

The term "employee", as used herein, include anyone engaged 

in the Indu try in any capacity receiving compensation for his ervice , irre pectiYe of the nature or method of payment of such compen ation. 

The term "employer" as used herein, in lude anyone by whom 

any uch employee is compensated or employed. 

The term "member of the Industry", a u ed herein includes 

anyone en°·aged in the Industry as above defined either a an employer or on his own behalf. 

The term ' Association" as used h r in, mean the "National 

S1 ray Paintino- and Fini hing As ociation '. 

The terms /?President", "Act", and "Admini trator" 

herein, hall mean re pectively the Pre ident of the nited 

Am rica, Title I of the National Indu trial R overy t 

Admini trator for Industrial RecoYery. 

ARTICLE III-H R, 

a u ed 

tate of 

and the 

E 'TIO 1. No emplo e shall be p rmitt d to w rk in ex , of 

fort ( 40) hour in any one ( 1) week or i o-ht ( ) hour in any 

twen y-four (24) hour p riod, exc pt a h rein otherwi pr vi l d 

norm r than ix (6) days per w k. 

E TI 2. Th maximum hour fix d in tion 1 hall not appl 

to employ l as r ar h te hni ian, wh r c ive mor than 

thirt -five ( dollars p r we· k or t th mp] y e who are 

(3:..0) 

• 
321 

eno-aged in an ex cutive, managerial or sup rvi ory car acity, who 

receive more than thirty-five ($35.00) dollars per week, and out ide 

sal men. 

ECT:J;ON 3. The maximum hour fixed in Se tion 1 shall not apply 

to any employee on emergency maintenance or emergency repair 

work involving breakdowns or protection of life or property, but in 

an3 uch special ca e at least one and one-half (11⁄2) times the 

normal rate of pay shall be paid for hours worked in excess of 

eight (8) hours per day and forty (40) hours per week. 

SECTION 4. The maximum hours fixed in Section 1 shall not apply 

for ix (6) weeks in any twenty-six (26) weeks' perio l, during which 

time overtime shall not exceed eight (8) hours in any one (1) week; 

provided, however, that in any such special case at least one and 

one-half (11⁄2) times the normal rate of pay shall be paid for hours 

,Yorked in excess of eight (8) hours per day and forty ( 4.0) hours 

per week. 

SECTION 5. Watchmen shall not be permitted to work in exce of 

fifty-six ( 56) hours per week. 

SECTION 6. Firemen, truckmen and shipping clerks may be permitted to work not in excess of forty-four (44) hours in any one (1) 

week, provided that one and one-half (11⁄2) times the normal rate · 

of pay shall be paid for hours worked in exce s of eight (8) hours 

per day and forty ( 40) hours per we·ek. 

SECTION 7. No employer shall knowingly 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 8. No accounting, clerical or office employees shall be employed in exces of forty ( 40) hours in any one (1) week or nine (9) 

hours in any one (1) day. Eight (8) hours con titute a normal 

work day. 

SECTION 9. Employers who personally perform manual work or 

are engag·ed in mechanical operations shall not exceed the prescribed 

maximum number of hours. 

ARTICLE 1v-,v AGEs 

SECTION 1. Except as herein otherwise provided, no clerical or 

office employee shall be paid less than at the rate of fifteen ($15.00) 

dollars per week, nor any male employee at less than the rate of 

forty ( 40) cents per hour, nor any female employee at less than the 

rate of thirty-five (35) cents per hour. All rates which are now 

in excess of these minima shall be promptly and equitably adjusted 

and in no case shall they be decreased. \Vi thin sixty ( 60) days 

after the effective date of the Code every em.player in the Industry 

shall file a complete statement of all such equitable adjustments with 

the Code Authority which shall furnish same to the Administrator 

at his request. 

SECTION 2. Office boys and girls shall be paid at a rate not less 

than eighty ( 80) per cent of the minimum salary provided for 

clerical or office employees in Section 1; provided that the number 

of uch office boys and girls so paid shall constitute not more than 

five (5) per cent of the total number of office and clerical employees 
322 

of any one employer but in any case, an employer shall be entitled 

to employ one (1) uch employee. 

SEcTio~ - 3. Thi Article establishes minimum rates of pay regardle of whether an employee is compensated on a time-rate piecework, or other basis. SECTION 4. Female employees performing substantially the same 

work a n1ale em.ployee hall receive the same rate of pay as male 

employee · and where they displace men, they shall receive the same 

rate of earning a the men they displace. 

ECTION 5. A per on who e earning capacity is limited because of 

age, ph ical or mental handicap, or other infirmity, may be emplouecl on light work at a wage below the minimum established by 

thi Code, if the employer obtains from the state authority, designated b the ... nited States Department of Labor, a certificate authorizin · uch per on' employment at such wages and for such hours 

a hall be tated in the certificate. Such authority hall be guided 

b the instruction of the United States Department of Labor in 

i ·uing certificate to such persons. Each employer shall file 

monthly with the ode Authority a list of all such per ons employed 

by him howing the wage paid to, and the maximum hour of work 

for uch e1nployee. 

ARTICLE -GENERAL LABOR PROVISIO s 

ECTION 1. A required by Section 7 (a) of Title I of the ational 

Indu trial Recovery Act it is hereby provided: 

That employees hall have the right to organize and bargain collectively through repre entatives of their own choo ing and shall be 

free from the interference, restraint, or coercion of employers of 

labor or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpo e 

of collective bargaining or other mutual aid or protection. 

That no employee and no one seeking employment hall be required as a condition of employment to Join any company union or 

to refrain from joining, organizing, or assisting a labor organization of hi own choo ing. 

That employers hall comply with the maximum hours of labor 

minimum rate of pay~ and other conditions of employn1ent approv d 

or _prescribed by the President. 

SECTION 2. o per on under sixteen (16) year of ag hall be 

employed in th I ndu try nor any one under eiahteen (18) a.rs of 

age at operation or occupations hazardous in natur r d trim ntal 

to health. The Code uthority shall submit to the lm.ini trator 

within ninety (90) days after approval of this od a list of uch 

occupation . In any tate an employer shall be de me l to hav 

complied with this pro i ion if he hall ha e on .fil a c rtifi ate 

or permit duly i ued by the Authority in u h tate mpow r d 

to i ue mpl } m nt or age certificates or permit ho inr.r that he 

employee is £ th requir d age. E TIO,;~ 3. Within a h tat thi 

laws of uch tate imp ing mor tring nt r quir m n 

ployers r gulating h ag of employees, wa hour of labor, or 

health, fir , or g n ral working conditions than und ode. 
323 

SECTION 4. Emplo er hall not reclassify employee or duties of 

occupation performed r engage in any other subterfuge so as to 

defeat the puq o e or provisions of the Act or of this Code. 

SECTION 5. Every employer shall provide for the safety and health 

of employees durino· the hours and at the places of their employment. 

Standard for a fcty and health shall be submitted by the Code 

Authority to the Aclmini trator within six (6) months after the 

effective date of the Code. 

SECTION 6. Each emplo er shall comply with all rules and regulation of the Pre ident or the Admini trator as to posting this Code 

or portions thereof. 

ARTICLE VI-Am.nNISTRA TION 

To effectuate further the policies of the Act, a Code Authority is 

hereby con titutecl to cooperate with the Admini trator in the administration of this Code. 

SECTION 1. Organization, Constitution and Powers of the Oodo 

Aitthority.-(a) The Code Authority shall consist of eight (8) individual or such other number as may be approved by the Administrator (in addition to not to exceed three (3) members to be appointed by the Administrator if he so elects, to serve without vote). 

Four ( 4) shall be members of the Board of Directors of the Association and shalt be appointed by said Board; two (2) shall be the 

Pre ident and Vice-President, respectively, of said Association, and 

two (2) shall be repre entatives of-1 and elected by, members of the 

Industry who are not members of that Association (provided any of 

said non-members de ire such representation, and signify their willingne s to .pay their pro rata hare of the cost of administering this 

Code as determined by the Code Authority, subject to review by the 

Admini tl'ator). 

The Code Authority shall complete its organization by electing its 

officer . A majority of the voting members of the Code Authority 

shall con titute a quorum at any meeting. A majority vote of the 

voting members of the Code Authority shall decide any question 

relating to the Indu try subject to the right of any person aO'grieved 

or affected thereby to have such decision reviewed and approved or 

di approYecl ther upon by the Administrator. 

(b) 1lemb rs of the Industry shall be entitled to participate in 

and hare the benefits of the activities of the Code Authority and to 

participate in the election of the members thereof by assenting to 

and complying with the requirements of this Code and sustaining 

their rea onable hare of the expenses of its administration. Such 

rea onable share of the expenses of administration shall be determined by the Code Authority subject to review by the Administrator on the basi of volume of business and/or such factors as may 

be deemed to be equitable. 

( c) The said As ociation, or any other trade association directly 

or indirectly participating in the selection or activities of the Code 

Authority, shall: (1) Impose no inequitable restrictions on membership, and (2) Submit to the Administrator true copies of its Constitution and By-Laws, and any amendments thereto1 together with 

such other information as to membership, organization and activi-
324 

ties as the Administrator may deem necessary to effectuate the 

purposes of the Act. 

( d) In order that the Code Authority hall at all time be truly 

repre ·entative of the Industry and in other respect comply with 

the proYi ions of the Act, the Administrator may pres ribe such 

hearing~ as he may deem proper; and thereafter if he shall find that 

the Code Authority is not truly representatiYe or doe not in other 

r e pect comply w·ith the provisions of the Act, may require an 

appropriate modification in the method of selection of the Code 

Authority. 

(e) For the purpose of keeping the ·Administrator informed as to 

the observance of this Code each 1nember of the Industry shall, when 

information is called for by the Administrator or the Code Authority, furnish certified reports to the Code Authority. The Code 

Authority may appo· t a disinterested agency for receiving such 

information. Information with respect to sales volume, co t and 

other details of operation which may be furnished by any member 

of the Industry to such disinterested agencies shall be con idered 

confidential and shall not be divulged to the Code Authority or to 

any member of the Industry but only to the duly appointed and constituted representative of the Administrator. 

1 SECTION 2. The Code Authority shall have the following further 

I dutie and powers to the extent permitted by the Act: 

[ (a) To adopt By-Laws and rules and regulations for its pro- ! cedure and for the administration of the Code. , (b) To represent the Industry in conferring with the President l or his agents with respect to the administration of this Code and in , respect of the National Industrial Recovery Act and any regulation 

: issued thereunder. 

I ( c) To hear complaints and attempt to adju t the same, under I such rules and regulations as may be prescribed by the Administrator. 

; ( d) To obtain from members of the Industry such information, 

;.data and reports as may be neces ary for the administration of this 

Code. Such information, data and reports as may be submitted by 

a member shall not be revealed, except in summary. The disinter- r ested agency receiving this information is hereby charged with the 

duty and responsibility of receiving such information, data and 

1 reports and keeping same confidential, but such information data 

! and reports shall at all times be available to the Administrator. 

; In addition to the information required to be submitted to the 

! Code Authority there shall be furni hed to Go, ernment Agencies 

1 su h stati tical information as the Admini trator may deem nece -

sary for the purpo e recited in Section 3 (a) of the Act but nothing 

in this Code shall relieve any per on of any exi ting obliaation to 

furni h r ports to Government Agencie . I ( e) To coordinate the admini tration of thi o le with uch cod , 1 if any, as may be adopted by any subdivision of thi Indu try or 

1 any related Indu try, with a view to providing joint and harmonious 

! a -tion on all matt rs of common intere t, all with th approval of 

the dmini trator. 

( f) To tudy the ff t of the variou provi ·i n · of thi o le on 

th Indu try and con id r propo al for am ndm nt or mo lifications and mak r omm ndation from time to time th reon which 

amendments or modifications will be ome ffective as part of the 
325 

C de upon approval of the Admini trator aft r uch notice and 

hearing a he may pecify. . . (g) To make rule and r gulation nece · ar _for the admm1 tration and for facilitating the enforcement of this Code, under uch 

rule· and regulations a · may be pre cribed by the \.dmini trat?r, 

ubject to the right of an affected per on to appeal to the ... dm1ni trator. • 

(h) To appoint a trade practice committee which . hall m et with 

the trade practice committ e appointed unuer uch other code a 

ma be related to the Indu try for the purpo e of formulatina fair 

trade practice to govern the relationships between production and 

di tribution employer under this Code and under uch others to 

the en l that such fair trade practice may be propo ed to the ~ dmini trator a amendment to thi ode and uch other code . 

SE TIOX 3. If the Admini tra tor shall determine that any action 

of the Code Authority or any agency thereof may be unfair or unju t 

or contrary to the public interest the Ad.mini trator may require 

that uch action be su pended to afford an opportunity for in-vestigation of th merit of uch action and further con ideration by uch 

Code ... uthority or ao-ency pending final action which hall not be 

effectfre unless the .Admini trator approves or unle he hall fail 

to di, approve after thirty (30) days' notice to him of intention to 

proce d with such action in it original or modified form. 

ARTICLE VII-EXPORT TRADE 

Except a may be ub equently et forth in a pecifi or upplementary Export Code for the Industry, the provi ions of the Code 

now or hereafter adopted with regard to price discounts, deduction · allowance extras commi ions or methods and/ or terms of 

sale are not to apply to direct export sales or to ale in course 0£ 

export ( i.e. ales de tined ultimately for export) or to sales of 

material. u ed in the manufacture of products for export. The 

term ·export' or ' export ales" shall include all shipments to 

out ide the nited tate of America and those shipments to the 

anal Zone or Ala ka. 

rticle VIII and Section 6 8 9 11, 12, 13 14, 15 17, 18, 19 21, 

and 22 of Article X shall not apply to direct export ales of any 

product or to sale of any product destined ultimatel for export. 

ARTICLE VIII-Co"T AccouNTIJG 

In the conduct of it~ bu ine each member of the Industry hall 

u e a method of cost accounting which conforms to the principles 

of the tandard method of cost accounting to be formulated or 

adopted by the Code Authority and approved by the Administrator. 

Variations from or modifications of the adopted method may be 

required to fit the individual need of particular members but the 

e:s:pre ion standard method i to imply in it narrowest sense: 

(a) a definition of accounting tern1 in order that all companies 

may include the same element in ,arious stage 0£ co t; and (b) a 

model or standard to provide a gauge of the requirements for an 

adequate procedure. Full detail concerning uch method hall be 

made available to all members. 
326 

ARTICLE IX-TRADE AND l\1ARKETING PRACTICES 

1. (a) \Vithin fiv e (5) days after the effective date of this Code, 

each member of the Industry shall file with the Code Authority his 

prices, discounts, and other terms and/ or conditions of sale, for 

standard products of the Industry or products made under recognized standard specifications, manufactured and/ or assembled for 

sale bjr him. Simultaneously he shall mail a copy thereof to other 

members of the Industry, whose names can be ascertained by diligent 

search, and to uch of his purchasing trade as he may deem desirable. 

(b) Revised prices, discounts, and other terms and/ or conditions of sale, may be filed with the Code Authority at any time by 

any member of the Industry, provided they are to become effective 

not earlier than five ( 5) days after the filing thereof. Simultaneously he shall mail a copy thereof to other known members of the 

Industry, whose names can be ascertained by diligent search, and to 

such of his purchasing trade as he may deem desirable. 1 

( c) The Code Authority shall make the effective prices, discounts, 

and other term and/ or conditions of sale available to all intere ted 

partie , as each may be concerned. 

( d) Except where otherwise specifically provided for in this Code, 

selling or offering to sell products of the Industry at prices, discounts, and term , and/ or on other conditions, other than those 

which are on file with the Code Authority as being effective, is 

nn unfair method of competition. 

( e) Other members of the Industry who file with the Code Authority revised price , discounts, and other terms and/ or conditions 

of sale, prior to the effective date of such revised price list discounts, and other terms and/ or conditions of sale, filed by another, 

a provided in paragraph (b) of this Section 1, may make their 

revised prices, diseounts, and other terms and/ or condition of sale 

effective on the same date as those fir t filed. 

( f) The provision of paragraph ( d) of this Section shall not 

apply with respect to any addition to selling prices, o filed, due 

to any excise sale , occupational or privilege tax which may be 

imposed upon the seller in connection with any sale, under Federal 

or State law. 

2. Transportation allowances.-Terms of sale shall provide that 

the selling price be f.o.b. eller' factory, but thi hall not operate 

t prevent the eller from meeting actual competition due to difference in publi hed tran portation charge of public ·ervice arriers 

applying- from the re pcctive point of origin in com1 tition to 

the de t1nation of the product . 

3. The Cod Authority hall e tabli h by any mean it leem practi able a mer ·handisino- plan for th d sjo-nation of dealer. , whole-

. al r or di tribut r · and manufa tur r of equipm nt and n h 

oth r desiQ'Ilation a m fitting. Thi plan to be ubmitt cl to the 

Admini -trator f r appr val or di approval. 

ARTI 'LE X - UNFAIR l\1ETH DS OF O1\IPETITION 

Th following pra ti con titute unfair m thods of comp tition 

for rn mbers of thi Industry and are prohibited. 

1 See paragraph 2 of order approving this Code. 
327 

1. l nduring Br ach o,f ontract.-Inducin<Y or att mptin<Y to induce th brca h of a ·ommercial ontract betwe n a m mber of the 

I ndustry an<l anyon with whom he has a contract. 2. L11i ·brandin,q.-1\Iarking, branding, or failing to bran l, for the 

purpo or ,Yi h ih effe -t of mi ·leading or leceiving with r spect 

to th qunntity, qnalit .. :ize, tyle, grade or sub tance of ·u h 

prolu t:. 

3. Fat ,, ... d e1·ti. ing.-To make ause or knowingl permit to be 

made or publi hed any fal e, untrue or deceptive statement directly 

or implied, by way of adverti ement or otherwise, concernin<Y the 

grade quality quantity ub tance, ize tyle, extent of w. age or 

sale, aparity or perf rmance of any product of the In lu try ha Ying 

a tendency and capa ity to mislead or deceive. 

4. JJi.szxn·agement of 'ompetitor or Product.-To make, ·au e or 

knowingl permit to be made or published in any manner any fal e, 

mi leadino- or dee ptiYe tatement concerning the finan ial tanding, abilit o perform contracts, bu ine s method policie or 

product of a competitor. 

5. Fa)se P rfoe Li t.-The publi hing or circulating of fal e or 

fictitiou price li t . 6. 'plit hip1nents.-Making partial deliYeries under ord r for 

quantities of produ t at the quantity price when the ale price is 

based on the shipment of the order at one time ( excepting only bona 

fide back or ler ) . 

7. ecret R ebrd s.- "\Vithholding from, or in erting in the invoice, 

fact which make the in,oice a fal e record wholly or in part of 

the tran._,action rer re ented on the face thereof, and/ or the ecret 

payment or allowance of rebate , refunds, credit unearned dis- count whether in the form of money or otherwi e or the ecret 

extension to certain purcha er of ser-vices or privileges not extended 

to all purcha ·er in the ame class and under like term or conditions . 

. '· F1· e D al~. -The practice of offering Free Deal in or 

connected "-ith this Indu try s products, except a otherwi e pro- vided in thi ection. "Fr e Deals hall include all form of marketing device offering free merchandise of ,alue whether of the 

ame kind a. that ol l or f a different kind and whether all or 

only a part of the co ti borne by the ·eller. The term Fr e Deal " 

shall not apply to the furni hing of a rea onable quantity of adYer- ti in<Y acce ~ories of mall Yalue uch a window di ·play , po ters, 

di play fixture , rack holder , etc. 

9. 1alcs bel01.c Cost.- Jo member of the Indu try hall. ell below 

cost as determined by the cost accounting ystem e tabli hed under 

Article VIII, except : 

(a) to meet e.s:i ting c mpetition of a lower cost producer or 

(b) to meet om petition in Yiolation of this code concerning which 

he member of the In<lu try ha · complained to the Code Authority 

and on which violation <leci ion i pending. 

10. 01n1ncnial B ,ibery .- o member of the Inclu tr. hall give, 

permit to be giYen, or directly offer to give, anything of alue for 

the purpo e of influencing or rewirrding the action of any emplo ee, 

agent or repre entativ of another in relation to the bu iness of the 

employer of such employee the principal of uch a<Yent or the represented party, without the knowledge of such employer, principal 
328 

or party. Commercial bribery provisions shall not be construed to 

prohibit free and general disti~ibution of articles commonly used 

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

commercial bribery as hereinabove defined. 

11. Prioe Guaranty.-Guaranteeing products against advance 

and/ or protecting against decline in price. 

12. Oonsignm,ent.-No member of the industry shall ship goods 

on consignment except under circumstances to be defined by the 

Code Authority, where peculiar circumstances of the industry 

require the practice. 

13. R etwrned Goods, Obsolescence.-Allowing credit to wholesalers, dealers and equipment manufacturers for return of unused 

products of the Industry ( other than returned for breach of contract by the seller), except as follows in this section, viz : 

Credit may be allowed dealers, wholesalers and equipment manufacturers ( who purchased such products for combining with their 

own products for resale) provided the said products still appear in 

the current catalog of the member of this Industry from whom purchased, and also provided that such purchasers pay to said member 

full transportation, a reasonable handling charge, a reasonable reconditioning charge, give such member an order not less in net amount 

than the amount of the credit to be allowed on the products to be 

returned, and that permission first is received from said me1nber 

of the Industry to return such products. This provision shall not 

prohibit the return of merchandise due to financial inability on the 

part of the purchaser, to fulfill the conditions of the purchase 

contract for such merchandise. 

14. Credit Allowance on Used Eqwi,pnient.-Allowing credit for 

the return of used products of the Industry to apply against the 

purchase price of other products of the Industry. 

(This section is not intended to prohibit acceptance of returned 

products which have been slightly used, in exchange for similar products more suitable to the customer's requirements, in bona fide cases 

of the seller's error or misunderstanding when accepting the order.,, 

or in cases of products which do not conform to specifications and. 

which the seller is by law obligated to accept.) 

15. Oloseouts.-If a member of the Industry deems it necessary to 

liquidate dropped lines, seconds, used equipment or inventories 

which must be converted into cash to me t emergency needs, the 

i:::ame may be sold by any member at any price and on any terms and 

conditions, but only if such member, not less than two (2) weeks 

before offering said products for sale, has filed with the Code Authority, a statement in writing, setting forth the fact of, and r ason for, 

such propo ed disposal, and provided that the invoice for uch prodnets o off red or ol l shall be plainly marked " Sp ·ial price on 

account of lo out", " Special price on account of e ond " or 

" Special pri e on account of u ed equipment' a the a e may b . 

16. Oontributions.-Giving contributions or prize to cu tom rs, 

or their alesmen or th r employees, the over liberal entertainment 

of cu tomers or pro pe tive cu tome.rs, the buying of space in special 

adverti ing i sues or se tions where a direct return to the purchaser 

r·ommensurate with the cost thereof may not r a onably be expected, 

and the extension of similar gratuities. 
329 

17. Membership in or Con.tributi011s to Organizations q,nd Conventions.-Takino- membership involving financial expenditure, or 

contributing money or anythino- of ub tantial value to, or purchasing exhibit pace at a con-vention of ant local state or regional 

oro-anization unle~ the aid oro-anization s openly declared policy 

is to promote or encourage th 0 sale of the products of thi Indu try. 

1 . Repl,acement of C01npetitors tock.- ccepting from wholesaler or dealer the product of another member of this Indu try 

for the purpose of exchange and replacing them with the product· 

of the member of the Industry making such exchange. 

19. Lwmp um Bidding.-Making lump um bid without clearly 

indicating on the bid the major tandard item included therein. 

0. Obtaining Lower Prices by ubterfuge.-Any plan or scheme 

designed to enable a purchaser to obtain lower prices by subterfuo-e. 

21. Substitution of Higher Priced Air Tanks.-Supplying in anv 

sale an air tank ( or tanks) rep re ented to be constructed under 

publi hed standards of the merican Society of :Mechanical Engineers or similar provi ion in force in any state or city, without adding to the selling price the extra co t thereof to the seller above the 

seller's price for air tanks that do not comply with the afore aid 

standards of con truction. 

22. Alteration of tandard Equipment.-Altering standard equipment appearing in the sellers catalog or price list, without making 

due allowance covering the co t of extra labor materials and incidental co ts in the selling price of such unit article in the seller 

price li t and publi hed and/ or filed or required by this Code to be 

filed with the Code Authority· except that deductjon shall be made 

for the value of any part or part omitted from the altered unit in 

the amount of the production co t thereof to the seller. 

Any device or means resorted to for the purpose of elling uch 

altered unit at le than the price charged others for such unit, in 

standard form, (plus the charge for alteration less the value of the 

omitted part or part , as above defined) hall be deemed a price 

di crimination prohibited by thi ode as an unfair method of 

competition. 

23. Lending 01· Donating Product of the I ndU,;, try.-Lencling or 

donating pray gun or acces. orie thereto to manufacturer or di -

tributor of praying material or to their employee or agent f r 

u e in exploitino- their product . 

2-1. Threats of Litigati01i.-The publishino· or circularizino- of 

thr ats of uit or uit for infringement of patent or trade mark 

or of any other legal proceeding not. in good faith with the tendency or effect of hara ~ing competitor· or intimidating their 

cu tomer . 

25. Espionage of ompetito,·" .- ecuring confidential information 

concerning the bu ine · of a competitor by a fal e or mi lea ling 

statement or repre entation. b · a fal e impersonation of one in authority by bribery or by any other unfair method. 

26. Other Fnfair Practices.-~ T othing in thi Code shall limit the 

effect of any adjudication by the ourts or holding by the Federal 

Trade Commi ion on complaint finding and order, that any practice or method is unfair, providing that such adjudication or holding 

is not incon istent with any pro"i ion of the Act or of this Code. 
UNIVERSITY OF FLORIDA 

330 

II I II IIIIII Ill Ill lllll lllll II IIIIII II IIII IIIIII II 111111111111111 

3 1262 08583 0346 

27. Allocation of Costs, Etc., for Unrelated Lines of Prod!ucts.-

,vhere a member of this Industry produces more than one line of 

products, each line shall be considered a separate unit for purposes 

of ascertaining costs, and expenses of all kinds shall be fairly and 

properly allocated to the several lines. 

ARTICLE XI-MODIFICATIONS 

This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions 

of subsection (b) of Section 10 of the Act, from time to time to cancel 

or modify any order, approval, license, rule or regulation issued 

under Title I of said Act and specifically, but without limitation, to 

the right of the President to cancel or modify his approval of this 

Code or any conditions imposed by him upon his approval thereof. 

This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circ-μmstances, such 

modifications to be based upon application to the Administrator and 

such notice and hearing as he shall specify, and to become effective 

on approYal of the Administrator. 

ARTICLE XII-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate 

against small enterprises. 

ARTICLE XIII-PRICE INCREASES 

Wherea the policy of the Act to increase real purchasing power 

will be made more difficult of con ummation 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. Bnt when made such increases should, so far as possible, 

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

ARTICLE XIV-EFFECTIVE DATE 

This Code shall become effective on the 10th day after its approval 

by the President. 

Approved Code No. 397. 

Registry No. 1341- 02. 

0