Approved Code No. 84-Supplement No. 52 Registry No. 1104-08 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

TUBULAR SPLIT AND OUTSIDE 

PRONGED RIVET 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON SEPTEMBER 22, 1934 

• 

1 "' ::;._-

" '' n ............ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I I I 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Offi e, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Boston, l\lass. : 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. 

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Indianapolis, Ind.: Chamber of Commerce Building. 

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Kan as City, Mo.: f028 Baltimore A \enue. 

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St. Louis, l\Io. : 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 84-Supplement No. 52 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

TUBULAR SPLIT AND OUTSIDE PRONGED RIVET 

MANUFACTURING INDUSTRY 

As Approved on September 22, 1934 

ORDER 

APPROVING SUPPLEl\IENTARY CoDE OF FAIR Col\IPETITION FOR THE 

TuBULAR SPLIT A ' D OuTSIDE PRONGED RIVET :MANUFACTURING 

INDUSTRY 

A DIVJSION OF THE F.ABRICATED J.\1ETAL PRODUCTS MANUFACTURING AND 

1\IETAL FIKISHING AND l\IETAL COATING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 193~ and in accordance with the 

provisions of Section 1 oJ Article V j_ of the Basic Code for the 

·Fabricated ~fetal Products ~fanufacturing and ~fetal Finishing 

and l\1etal Coating Industry, approved November 2, 1933, for ap- proval of a Supplementary Code of Fair Competition for the 

THbular Split and Outside Pronged Rivet Manufacturing Industry, 

and hearing haYing been duly held thereon; and the annexed report 

on said Supplementary Code, containing findings with respect there- to, having been made and directed to the Pre ident: 

NO\V, THEREFORE, on behalf of the Pre,sident of the United 

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

pursuant to authority vested in me by Executive Orders of the 

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

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

annexed report and do find that said Supplementary Code complies 

in all re pects with the pertinent provisions and will promote the 

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

that ,said Supplementary Code of Fair Competition be and it is 

hereby approYed, provided, however, that the provisions of Article 

VI, Section 1 insofar as they prescribe a waiting period between 

the filing with the Supplementary Code Authority (or such agency 

as may be designated in the Code) and the effective date of price 

lists, as originally filed and/ or revised price lists or revised terms 

and conditions of sale, be and they hereby are stayed pending my 

further Order. 

HUGH s. JOHNSON' 

Administrator for lndust1'ial R eco1Je1"lJ. 

Approval recommended: 

BARTON \V. ~1URRAY, 

Divisi:J.n A(Z1ninistrator. 

\ VASIUNGTON' D .C., 

S eptembe-r 932, 1934. 

87322°----1181-89----34 (1) 
REPORT TO THE PRESIDEXT 

The PRE IDEXT, 

The Whzte Ho'use. 

SIR: Thi i a report on the Supplementary Code of Fair Competition for the Tubular Split and Out ide Pronged Rivet Industry, 

a clivi ion of the Fabricated l\fetal Products l\1anufacturing and 

Metal Finishing and Metal Coating Industry, the hearing having 

been conducted thereon in \Vashington, D.C., January 19, 1934, in 

accordance with the provisions of Title I of the National Industrial 

Recovery Act. 

GENERAL STATEl\IENT 

The Tubular Split and Outside Pronged Rivet Industry, being 

truly repre entative of this division of the Fabricated :Metal Products 

l\1anufacturing and :Metal Fini hing and l\fetal Coating Indu try, 

has elected to avail it elf of the option of submitting a Supplemen- tary Code of Fair Competition, a provided for in Section 1 of 

Article \I of the Basic Code, for the Fabricated l\1etal Products 

Manufacturing and l\Ietal Finishing and l\1etal Coating Industry 

approved by you on the second day of November, 1933. 

RE U1\1E OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supple- mentary Code. 

ARTICLE III. This Indusb'y is a clivi ion of the Fabricated l\1etal 

Products l\Ianufacturing and l\Ietal Fini hing and l\Ietal Coating 

Indu try and the labor provisions of its Ba ic Code as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establi hes a Supplementary Code Authority con- sisting of five ( 5) members to be el cted at a meeting called by the 

Temporary Supplementary Code Authority, and gives the Administrator the authority to appoint one additional member without vote 

and provides machinery for obtaining statistics and the admini tration of the Supplementary Code. 

Article V provides for the formulation of methods of uniform 

co t finding and accounting. 

Article VI sets forth the open price provi ions. 

Article VII ets forth the standard of fair competition with 

reference to pricing practice . 

Arti le VIII provides that no provi ion relating to prices or terms 

of selling, shipping, or marketing, shall apply to export trade. 

Article IX ets forth the rule of Fair Trade Practices. 

(2) 
3 

Article X contains the mandatory provisions contained in Section 

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

amendments to the Supplementary Code. 

Article XI provides against monopolies and monopolistic 

practice . Article XII recognizes that price increases be limited to actual 

additional increases in the seller's cost. 

Article XIII states the effective date of this Supplementary Code. 

FINDINGS 

The Deputy Aclmini tr·ator in his final report to me on said Supplementary Code having found as herein set forth and on the basis 

of 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 removal of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of indu try for the purposes of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanctions an l supervision, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity of 

inclu tries, by a voiding undue re triction of production (except as 

may be temporarily required), by increasing the consum.ption of industrial and agricultural products through increasing purchasing 

power, by reducing 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 indu try. 

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

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

without limitation Subsection (a) of Section 3, Subsection (a) of 

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

applicant institute is an industrial association truly representative 

of the aforesaid Industry; and that said association imposes no inequitable restrictions on admi sion to membership therein. 

(d) The Supplementary Code is not designed to and will not per- mit monopolies or monopolistic practices. 

(e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. 

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

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

Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code. 

Respectfully, 

SEPTEl\IBER 22, 1934. 

HuGHS. J oHNSON, 

Administrator. 
SUPPLE~IENTARY CODE OF FAIR C011PETITION FOR 

THE TUBULAR SPLIT AND OUTSIDE PRONGED RIVET 

~IANUFACTURING INDUSTRY- A DIVISION OF THE 

FABRICATED ~1ETAL PRODUCTS ~IANUFACTURING 

AND ~1ETAL FINISHING AND METAL COATING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Tubular Split and Outside Pronged Rivet Manufacturing Industry, pursuant to Article VI 

of the Basic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and lvfetal Finishing and Metal Coating 

Industry approved by the President of the United States on the 2nd 

day of November, 1933, and the provisions of this Supplementary 

Code hall be the Standards of Fair Competition for such Industry 

and shall be binding upon every member thereof. 

AnTICLE II-DEFINITIONS 

SEcTION 1. The term " Tubular Split and Outside Pronged Rivet 

1\'Ianufacturing Indu try", hereafter referred to as the "Industry", 

is defined to mean the manufacture for sale of tubular, split, and outside-pronge l rivets and caps made of steel, brass, copper, iron, 

aluminum, or other suitable metals. 

SECTION 2. The term_ "I\Iember of the Industry" includes, but 

without limitation, any individual, partnership, association, corpora- tion or other form of enterprise, engaged in the Industry either as 

an employer or on his or its own behalf. 

SECTION 3. The terms "President", "Act", and "Administrator" 

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

States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

SECTION 4. The term "Basic Code", as used herein, is defined to 

mean the Basic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and ltfetal Finishing and ~1etal Coating 

Indu try, as approved by the Pre ident on the 2nd day of N ovember, 1933. 

SECTION 5. The term "Supplementary Code Authority", as used 

herein, is defined to mean the agency which is to administer this 

Supplementary Code as hereinafter provided. 

SECTION 6. The term "Institute", as u eel herein, i defined to 

mean the In titute of Tubular Split and Outside Pronged Rivet Manufacturers, or its successor. 

(4) 
5 

SECTION 7. The term "Supplementary Code Committee" is defined to mean the Executive Committee of the Institute. 

SECTION 8. The term "employee" as used herein includes any and 

all persons engaged in the industry, however compensated, except a 

member of the industry. 

SECTION 9. The term "employer" as used herein includes anyone 

by whom such employee is compensated or employed. 

ARTICLE III-El\IPLOYMENT PROVISIONS 

This Indu try is a division of the Fabricated :Metal Products ~{anufacturing and ~1 tal Finishing and ~1etal Coating Industry and 

without limitation the wage, hour and labor provisions in Article III 

of its Basic Code as approved by the President, November 2, 1933, 

in h1ding Section 1 of said Article III, by which the provisions of 

sub ection (1) ,(2) and (3) of Section 7 (a) of Title I of the Act are 

made conditions of this Code, are specifically incorporated herein 

an l made a part hereof as the wage, hour and labor provisions of 

this Supplementary Code. 

ARTICLE IV-ORGANIZATION AND AmvnNISTRATION 

SECTION 1. (a) During the period not to exceed thirty (30) days 

following the effectiYe date, the Code Committee will constitute a 

Temporary Supplementary Code Authority until the Supplementary 

Code Authority is elected. 

(b) There shall be constituted within the thirty ( 30) day period 

a Supplementary Code Authority consisting of five members, to be 

elected by a majority vote of the members of the Industry, at a 

meeting called by the Temporary Supplementary Code Authority, 

upon ten (10) days notice sent by registered mail to all members of 

the Industry whose names may be ascertained after diligent search, 

who may Yote either in person or by proxy, each member to have 

one vote. The members of the Supplementary Code Authority first 

elected shall serve until June, 1935, anu thereafter members of the 

Supplementary Code Authority shall be elected annually at a 

special meeting of all members of the Industry to be held during the 

month of June, each year, the exact date of which shall be determined by the Supplementary Code Authority, and notice given by 

registered mail at least fifteen (15) days prior thereto. 

(c) A vacancy in the membership of the Supplementary Code 

Authority may be filled by a majority vote of the remaining members of the Supplementary Code Authority. 

(d) In addition thereto the Administrator may appoint one member of the Supplementary Code Authority who without vote shall 

serve without expense to the Industry. The representative who may 

be appointed by the Administrator shall be given reasonable notice 

of and may sit at all meetings of the Supplementary Code Authority. 

SECTION 2. The Institute or any Association, directly or indirectly 

participating in the selection or activities of the Supplementary Code 

Authority, shall (1) impose no inequitable restrictions on membership and (2) submit to the Administrator true copies of its Articles 

of Association, By-Laws, Regulations, and any amendments when 
6 

made thereto, together with such other information as to membership organization, and activities as the Administrator ma deem 

nece sary to effectuate the purposes of the Act. SE TION 3. In order that the Su}_.plementary Code Authority shall 

at all times bn truly representati'e of the Indu try and in other 

respect compl_ · 'vith the provi ions of the Act, the Administrator 

may pre cribe such hearings as he m:1y deem proper; and, thereafter, 

if he shall find that the Supplementary Code Authority is not truly 

repre entahre or does not i1~ other re pect~ comply_ wit~ the provi ions of the Act ma} roqu1re an a ppropnate mod1ficat10n of the 

Supplementary Cocle Authority. SECTIOX 4. All 111 mbers of the Industr. r are subject to the jurisdiction of the Supplementary Code Authority· shall be entitled to 

participate in and hare the benefits of the Supplementary Code 

Authority; and hall be entitled to vote in the selection of the 

Supplementary Code Authority as provided in Section 1 of this 

Article an l in accordance with the restrictions set forth in Section 5 

of this Article. 

SECTION 5. ( 1) It being found neces ary, in order to support the 

admini tration of this Supplementary Code and to maintain the 

standards of fair competition established heretmder and to effectuate 

the policy of the Act, the Supplementary Code Authority is 

authorized: 

(a) To incur such reasonable obligations as are necessary and 

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

of fund which may be raised as hereinafter provided and which 

shall be held in trust for the purposes of the Supplementary 

Code. (b) To ubmit to the Administrator for his approval, subject to 

such notice and opportunity to be heard a he may deem necessary, ( 1) an itemized budget of its estimated expenses for the foregoing purpo es, and (2) an equitable basis upon which the :funds 

nece o:;:a ry to support such budget shall be contributed by members 

of the Industry; 

(c) After uch budget and basis of contribution have been ap- proved by the Administrator, to determine and obtain equitable 

contribution us above set forth bv all such members of the Industry, and to that end, if necessary, to institute legal proceedings 

therefor in its own name. 

(2) Each member of the Industry shall pay his or its equitable 

contribution to the expenses of the maintenance of the Supplementary Code Authority, determined as hereinabove provided, and 

subject to rules and regulations pertaining thereto issued by the 

Administrator. Only members of the Industry complying with the 

Supplementary Code and contributing to the expenses of its Ad- ministration as hereinabove provided, unl s duly exempted from 

making uch contributions, shall be entitled to particj pate in the 

selection of members of the Supplementary Code Authority or to 

receive the benefits of any of its voluntary activities or to make 

use of any emblem or insignia of the National Recovery Adminis- tration. 

(3) The Supplementary Code Authority shall neither incur nor 

pay any obligation substantially in excess of the amount thereof 
7 

as estimated in its approved budget, and shall in no event exceed 

the total amount contained in the approved budget, except upon ap- proval of the Administrator; and no subsequent budget shall con- tain any deficiency item for expenditures in excess of prior budget 

estimates except those which the Administrator shall have so 

approved. 

SECTION 6. The Supplementary Code Authority shall have the 

:following :further powers and duties, subject to such rules ancl 

regulations as may be prescribed by the Administrator. 

A. The Supplementary Code Authority shall have power to investigate all comphtints filed by one member of the Industry against 

another member of the Industry, subject to such rules and regulations 

as the Administrator may prescribe. 

B. To adopt by-laws and rules and regulations for its procedure 

and :for the administration of the Supplementary Code. 

C. To obtain from members of the Industry such information and 

1·eports as are required :for the administration of the Supplementary 

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

Supplementary Code Authority, members of the Industry subject 

to this Supplementary Code shall furnish such statistical information 

as the Administrator may deem necessary for the purposes recited in 

Section 3 (a) of the Act to such Federal and State agencies as he may 

designate; provided that nothing in this Supplementary Code shall 

relieve any member of the Industry of any existing obligations to 

furnish reports to any Government Agency. No individual report 

shall be disclosed to any other member of the Industry or any other 

party except to such other Governmental agencies as may be directed 

by the Administrator. 

D. To use such trade associations and other agencies as it deems 

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

herein, provided that nothing herein shall relieve the Supplementary 

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

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

E. To make recommendations to the Administrator for the coordination of the administration of this Supplementary Code with such 

other Codes, i:f any, as may be related to the Industry. . F. To appoint a Trade Practice Committee which shall meet with 

the trade practice committees appointed under such other Codes as' 

may be related to the Industry :for the purpose of :formulating :fair 

trade practices to govern the relationships between employers under 

this Supplementary Code and under such other Codes to the end ! 

that such :fair trade practices may be proposed to the Administrator 

as amendments to this Supplementary Code and such other Codes. 

G. To recommend to the Administrator :further :fair trade practice 

provisions to govern members o:f the Industry in their relations with 

each other or with other industries and to recommend to the Administrator measures :for industrial planning, including stabilization o:f 

employment. 

H- To study, in cooperation with such recognized organization 

as the Bureau of Standards, questions o:f devising adequate standards 

o:f dimensions and quality for the products of the Industry, with tho 

view to their recommendation to and adoption by the Industry. 
8 

I. To submit to the Administrator for his approval a standard 

arrangement for setting up data to be contained in published price 

lists. 

SEcTION 7. Every employer shall provide for the safety and health 

of employees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the 

Supplementary Code Authority to the Administrator within three 

(3) months after the effective date of the Supplementary Code. 

SEcTION 8. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof is unfair 

or unjust or contrary to the public intere t. the Administrator may 

r equire that such action be suspended to afford an opportunity for 

inve tigation of the merits of such action. Further action by such 

Supplementary Code Authority or agency regarding the matter complained of may be taken if approved by the Administrator, but shall 

not be tak n if disapproved by the Administrator 1Yithin 30 days of 

notice to him of intention to proceed with such action. 

SECTION 9. The Supplementary Code Authority, as such agency 

::<hall also, from time to time, furnish to the Basic Code Authority, 

de ignated in said Basic Code, such information as may be r equired 

to be furnished under the term of said Ba ic Code. 

SECTION 10. Nothing contained in this Supplementary Code shall 

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

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

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

Code Authority. Nor hall any member of the Supplementary Code 

Authority exercising reasonable diligence in the conduct of his duties 

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

this Supplementary Code, except for his own wilful malfeasance or 

non-feasance. 

SECTION 11. Any or all information furnished to the Supplementary Code Authority by any member of the Indu try shall be, 

pursuant to the provisions of this Supplementary Code, subject to 

verification by an examination of the pertinent or neces ary books, 

accounts and r ecords of such member by an impartial agency agreed 

upon by the Supplementary Code Authority and the member of 

the Industry in question, or, failing such a_greement, by an impartial 

agent designated by the Administrator. Such examination shall be 

made only to the extent permitted by the Act and such rules and 

r egulations as may be prescribed by the Administrator. The co t of 

each such examination shall be borne by the Supplementary Code 

Authorit:y. 

ARTICLE V-CosT FINDING AND AccouNTING 

The Supplementary Code Authority shall cause to be formulated 

methods of cost finding and accounting capable of use by all members 

of the Industry and hall submit such methods to the Administrator for review. If approved by the Administrator, full information 

concerning such methods shall be made available to all members of 

the Indu try. Thereafter, each member of the Industry shall utilize 

such methods to the extent found practicable. Nothing herein con-
9 

ta.ined shall be construed to permit the Supplementary Code Authority, any agent thereof, or any nLember of the Industry to sug- gest uniform additions, percentages or differentials or other uniform 

items of cost which are designed to bring about arbitrary uniformity 

of costs or prices. 

ARTICLE VI-OPEN Pm E Fn..nw 

SECTION 1. Each member of the Industry shall file with a confidential and disinterested agent of the code authority or, if none, 

then with such an agent de;:;ignated by the Administrator, identified 

lists of all of his prices, discounts, rebates, allowances, and all other 

terms or conditions of sale, hereinafter :in this article referred to as 

"price terms", which lists shall completely and accurately conform 

to and represent the individual pricing practices of said member. 

Such lists shall contain the price terms for all such standard products 

of the Industry as are sold or offered for sale by said member and 

for such non-standard products of said member as shall be designated by the Supplementary Code Authority. Said price terms 

shall in the first instance be filed within ten (10) days after the 

election of the Supplementary Code Authority. Price terms and 

revised price terms shall become effective three days subsequent to 

the receipt thereof by said Agent. I mmediately upon receipt 

thereof, said agent shall by telegraph or other equally prompt means 

notify said member of the time of such r eceipt. Such lists and 

revisions, together with the effective time thereof, shall upon receipt 

be immediately and simultaneously distributed to all members of the 

Industry and to all of their customers who ha\e applied therefor and 

have offered to defray the cost actually incurred by the Supplement ary Code Authority in the preparation and distribution thereof and 

be available for inspection by any of their customers at the office of 

such agent. Said lists or revisions or any part thereof shall not be 

made available to any person until released to all members of the 

Industry and their customers, as aforesaid; provided, that prices 

filed in the first instance shall not be released until the expiration of 

the aforesaid ten ( 10) day period after the election of the Supplementary Code Authority. The Supplementary Code Authority 

shall maintain a permanent file of all price terms filed as herein 

provided, and shall not destroy any part of such records except upon 

written consent of the Administrator. Upon request the Supplementary Code Authority shall furnish to the Administrator or any duly 

designated agent of the Administrator copies of any such lists or 

revisions of price terms. 1 

SECTION 2. When any member of the Industry has filed any revision, such member shall not file a higher price within forty-ejght 

(48) hours. 

SECTION 3. No member of the Industry shall sell or offer to sell 

any products of the Industry, for which price terms have been filed 

pursuant to the provisions of this article, except in accordance with 

such price terms. 

SECTION 4. No member of the Industry shall enter into any agreement, understanding, combination or conspiracy to fix or maintain 

1 See paragraph 2 of order approving this Code. 
10 

price terms, nor cause or attempt to cause any member o£ the In· 

dustry to change his price terms by the use o£ intimidation, coercion, 

or any other influence inconsistent with the maintenance of the free 

and open market which it is the purpose of this article to create. 

ARTICLE' VII-CosTs .AND PrucE CuTTING 

SECTION 1. The standards of fair competition for the Industry 

with reference to pricing practices are declared to be as follows : 

(a) \Yilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the Industry or of 

any other Industry or the cu tamers of either may at any time complain to the Supplementary Code Authority that any filed price 

con titutes unfair competition as destructive price cutting, imperiling "mall enterprises or tending toward monopoly or the impairment 

of code wages and working conditions. The Supplementary Code 

Authority shall within 5 days afford an opportunity to the member 

filing the price to answer such complaint and shall within 14 days 

n1ake a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referr·ed to the Research and Planning Division of N.R.A. which shall 

ren ler a report and recommendation thereon to the Administrator. 

(b) \Vhen no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. 

(c) \Vhen an emergency exists as to any given product, sale below 

the stated minimum price of such product, in violation of Section 2 

hereof, is forbidden. 

SECTION 2. Emergency PTovisions.-

(a) If the Administrator, after investigation shall at any time find 

both (1) that an emergency has arisen within the Industry adversely 

affecting small enterprises or wages or labor conditions, or tending 

toward monopoly or other acute conditions which tend to defeat the 

purposes of the Act; and (2) that the determination of the stated 

minimum price for a specified product within the Industry for a 

limited period is necessary to mitigate the conditions constituting 

such emergency and to effectuate the purposes of the Act, the Supplementary Code Authority may cause an impartial agency to investigate costs and to recommend to the Administrator a determination 

of the stated minimum price of the product affected by the emergency 

and thereupon the Administrator may proceed to determine such 

stated minimum price. 

(b) When the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of such 

emergency and to eff ctuate the purposes of the National Industrial 

Recovery Act, he shall publish such price. Thereafter, during such 

~;;tated period, no member of the Industry shall sell such specified 

products at a net realized price below said stated minimum price and 

any such sale shall be deemed destructive price. cutting. From time 

to time, the Supplementary Code Authority may recommend review 
11 

or reconsideration or the Administrator may can e any determinations hereunder to be reviewed or recon iderecl and appropriate 

action taken. 

ARTICLE VIII-ExPORT TRADE 

No provisions of this Supplementary Cole relating to prices or 

terms of selling, shipping, or marketing, shall apply to export trade 

or sales or shipments for export trade. "Export Trade" shall be as 

defined in the "Export Trade Act", adopted April 10, 1918. 

ARTICLE IX-FAIR TRADE PRACTICES 

SECTION 1. The following sections are adopted as rules of Fair 

Trade Practices and shall be binding upon all members of the 

Industry: 

A. No member of the Industry shall knowingly withhold from or 

insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

B. No member of the Industry shall secretly offer or make any 

payment or allowance of a rebate, refund, commis ion credit, unearned discount or excess allowance, whether in the form of money 

or otherwise, nor shall a member of the industry 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. 

C. No member of the Industry shall defame a competitor by 

falsely imputing to him dishonorable conduct, inability to perform 

contracts, questionable credit standing, or by other false representation, or by falsely disparaging the grade or quality of his goods. 

D. There shall be no false marking or branding of any product of 

the Industry which has the tendency to mislead or deceive customers 

or prospective customers, whether as to the grade, quality, quantity, 

sub tance, character, nature, origin, size, finish, or preparation of 

any product of the Industry or otherwise. 

E. It is an unfair trade practice to imitate or simulate the trade 

mark, trade name, package wrapper, or label of a competitor's product to such a degree as to deceive or have a tendency to deceive 

customers. 

F. The false classification of any products of this Industry for the 

purpose of securing lower freight rates shall be an unfair method of 

competition. 

G. It is an unfair trade practice to make, or cause or knowingly 

permit to be made, or publish any false, materially inaccurate or 

deceptive statement, by way of advertisement or otherwise, whether 

concerning the grade, quality, quantity, substance, character, nature, 

origin, size, finish or preparation of any product of the Industry, or 

the credit, term , values, policies, or services of any member of the 

Industry, or otherwise, having the tendency or capacity to mislead 

or deceive customers or pro pective customers. 

H. The securing of confidential information concerning the business of a competitor, by a false or misleading statement or representation, which is properly regarded by it as a trade secret or confidential 

within its organization, other than information relating to a viola-
12 

tion of any provi ions of the Supplementary Code, is an unfair trade 

practice. 

I. No member of the Indu try, directly or indirectly, by any meam~ 

what oeYer, hall (1) sell any of the products enumerated in the 

price li ts (filed a provided for in Article VI) at prices other than 

tho e o filed, or (2) extend any servicing which would have the 

effect, directly or indirectly, of reducing the net prices so determined. 

Provided however, that the leasing of riveting machines by a manufacturer under lea es by the provisions of which the compensation for 

the ervicing of such machines by the manufacturer durino- the term 

of their rental is included in the price of the rivets supplied by such 

manufacturer to the le see, and under the provi ions of which 

rebates of rental of the machines are made in con ideration of the 

u e of specified quantities of rivets supplied by said manufacturer 

to the lessee, hall not be construed a violation of this Section. 

J. The making of any sale or contract of sale of any product under 

any description which does not fully describe such product in terms 

customarily used in the Industry, and the canceling, in whole or in 

part, or permitting the cancellation, in whole or in part, excepting 

where the eller is at fault, of any contract of sale of any product 

except for a fair consideration, or paying or allowing to any purchaser in connection with the sale of any product any rebate commi ion, cr,edit, discount, adjustment, or similar concession other 

than as is permitted by the Supplementary Code and specified in the 

contr act of sale, are unfair trade practices. 

K. 1\fembers of the Industry hall not contract for sale of product co,ered by this Supplementary Code for longer than calendar 

quarterly periods. All shipments on contracts shall be made within 

15 days after the expiration date, or as soon thereafter a the seller 

can manufacture and ship the same. No quarterly contract shall be 

made more than 30 days prior to the beginning of the calendar quarter. and shall be at the price effective at the time of making the 

contract. 

L. No member of the Industry shall make or give to an3 Buyer 

of any product of the Industry, any guarantee or protection in any 

form ao·ainst decline in the market pnce of such product after hipment thereof. 

:M. No member of the Indu try shall con ign replacement ri,ets 

with a eli tributive medium of any character, or industrial rivets 

with any consumer, except under circumstance to be defined by the 

Supplementary Cod Authority and approved by the Administrator, 

where peculiar circum tance of the Indu try require the practice. 

N. No member of the Indu try f. hall mak any arrang ment with 

a jobber or dealer whereby uch jobber or dealer act both a agent 

and a jobb r or dealer in a specific transaction and ther by recei\e · both the jobbers commi ion or l.ealer s eli count and the agent' 

commi. sian on the same tran action. 0. The continuance knowino-ly by a member of tho Inclu try in 

its or his emplo3 ment of any agent "·ho shall divide hi commi ion 

with a buyer or the agent of. the buyer, without the lm wle lge of 

his employer, i prohibited. 

P. 1\fember of the Indu try hall not permit the return by any 

buyer of any product covered herein, delivered in full compliance 
13 

wjth all the terms and conditions of any contract, except products 

defectiYe in material or workmanship, nor shall any such member of 

the Industry purchase or repurchase such products after the dehvery 

thereof by whomsoever clcli\ered to such buyer. Exception may be 

made in cases where the product is shown on the current price li t 

and the buyer reports in good faith within ten days after receipt of 

the shipment that an error has been made by him in ordering; in 

which cas~ the return tran portation charges must be prepaid and a 

reasonable handling charge may be made based on the invoice value 

of tf1e goods. Exception may also be made to permit the return of 

goods for which the purchGLser refuses to pay. 

Q. The making or issuing of any guarantees having a tendency to 

mislead a buyer, is an unfair trade practice. 

R. No member of the Industry shall publish or circulate unjustified or unwarranted threats of legal proceedings which tend to or 

have the effect of hara sing competitors or intimidating their 

cu tamers. 

S. Quoting a total price on any schedule of materials which does 

not show the sum of the regular unit prices of the articles compris- ing the schedule, constitutes unfair competition. VVhere an article 

con i ts of two or more parts which themselves are con idered units 

by the Industry, the unit price of the combination article shall be 

the sum of the unit prices of the articles which comprise it and the 

inYoice shall list each item separately with its price. This rule shall 

not be construed to prevent the granting of quantity discounts. 

T. The giving, or lending, of any material or the rendering to any 

purchaser of any product, in connection with the sale of uch product, 

of any service, unless fair compensation for such material or service 

shall be paid by such purcha er, is an unfair trade practice. Provided, however, that the leasing of riveting machines by a manu- fa,turer under leases by the provisions of which the compensation 

for the servicing of such machines by the manufacturer during the 

term of their rental is included in the price of the rivets supplied by 

such manufacturer to the lessee, and under the provi ions of which 

rebates of rental of the machines are made in consideration of the 

u e of specified quantities of rivets supplied by said manufacturer to 

the lessee, shall not be construed as violation of this section. 

U. The announcement of price changes by any member of the 

Industry to its sales organization or to any buyer prior to the effec- tive elate of such changes, is an unfair trade practice. 

V. No member of the Industry shall give, permit to oo given, or 

directly offer to give, anything of value for the purpose of influencin<Y 

or rewarding the action of any employee, agent or representative of 

another in relation to the business of the employer of such employee, 

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 di tribution of articles commonly used for advertising except so far as such articles are actually 

used for commercial bribery as hereinabove defined. 

,V. No member of the Industry shall wilfully induce or attempt to 

induce the breach of existing contracts b tween competitors and their 

customers by any false or deceptive means, or interfere with or 

obstruct the performance of any such contractual duties or services 
UNIVERSITY OF FLOR IDA 

14 1111111111111111111111111111111111111111111111111111111111111111 

3 1262 08856 2433 

by any such means, with the purpo e and effect of hampering, injurino- or embarra ing competitors in their business. X. No member of the Indu try shall require that the purchase or 

lea e of any good be a pre-requi ite to the purcha e or lea e of any 

other good . This provision shall not be interpreted as prohibiting 

the lea ing of ri' et setting machine by a member of the Indu try on 

a basi providino- for the cancellation or reduction of a stipulated 

rental in consideration of the purcha e of a stipulated quantity of 

rivet . 

Ann LE X-:MomFICATION 

SECTION 1. This Supplementary Code and all the provisions 

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

accordance with the provision of sub-section (b) of Section 10 of 

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

licen e, rule or regulation issued under the said Act. 

SECTION 2. This Supplementary Code, except a to provi ions required by the Act, may be modified or amended on the ba is of 

experience or changes in circumstances, such modifications or amendments to be ba eel upon application by the Supplementary Code 

Authority or other Representative group within this 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 approval by the Administrator. 

ARTICLE XI- MoNOPOLIEs 

SECTION 1. No provj ion of this Supplementary Code shall be so 

applied as to permit monopolies or monopolistic practices, or to 

eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XII-PRICE INCREASES 

'Vhereas the policy of the Act to increase real purchasing power 

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

services increase as rapidly as -w:ages, it is recognized that price 

increases except such as may be required to meet individual cost 

should be delayed but when made such increa es should, so far as 

po . ible be limited to a tual additional increases in the seller's costs. 

ARTICLE XIII-EFFECTn""E DATE A-n DunATION 

This Supplementary Code shall become effective at 12: 01 o'clock 

(Ea tern Standard Time) on the tenth day after it is approved by 

the Pre ident and hall continue in effect until June 16, 1935, or the 

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

emergency rec gnized by ection 1 of Title I of the National Industrial R very A t ha ended. 

Approv cl C'oc1e No. 4-- ut pl ment No. 52. 

Regi try No. 1104-0 . 

0