Approved Code No. 347-Supplement No. 25 Registry No. 1399-63 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

POWER TRANSMISSION 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JULY 6, 1934 

'WE DO OUR PART 

TORY 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASWNGTON: 193-i 

l 

I 

For sale by the Superintendent of Documents, Washington, D.C. • • • • • • - - Price 5 cents 
This publication is for sale by the Superintendent of DC\i:;uments, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

Foreign and Domestic Commerce. -

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Bo ton, Mass. : 1801 Cu tomhouse. Buffalo, .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. 

Detro.it, Mich.: 801 First National Bank Building. 

Hou ton, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla. : bamber of Commerce Building. 

Kansas City, J\Io.: 1028 Baltimore A,enue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Fooeral Building. 

Minneapolis, Minn.: 213 Fooeral Buildino-. 

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

New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa . : bamber of Commerce Building. 

Portland, Or g. : ~15 Tew Po t Office Building. 

St. Louis, Mo.: 5 6 Olive Street. 

San Franci co, Calif. : 310 Cu. tomhouse. 

Seattle. \\ a h. : 809 Federal Office Building. 
Approved Code No. 347-Sup::>lement No. 25 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

POWER TRANSMISSION INDUSTRY 

As Approved on July 6, 1934 

ORDER 

SUPPLEl\IENTAL CODE OF F AIR COMPETITION FOil THE POWER TRANSl\HSSION INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly rn.ade pursuant to and in full 

compliance with the provisions of Title I of the National Indu trial 

Recovery Act, approved June 16, 1933, for appr::>Val of a Supplemental Code of Fair Comp 0 tition for the Po"\Ter Transmission Subdivision of l\Iachinery and Allied Products Industry, and hearings 

having been duly held thereon and the annexed report on said 

Supplemental Co le containing findings with re pect thereto, having 

been made and directed t ::> the President: 

NOW, THEREFORE, on behalf of the President 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 o. 6543-A, dated December 30, 

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

report and do find that said SuJ?plemental Code a:nnplies in all 

respects with the pertinent provis10ns and will promote the policy 

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

said Supplemental Code of Fair Competition be and it is hereby 

approved, subject to the following condition: that the provisions 

of Article VIII, Section (a), insofar as they prescribe a waiting 

period between the filing with the Code Authority ( or such agency 

as may be designated in the Supplemental 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 Industrial Recovery. 

Approval recommended : 

BARTON w. MURRAY, 

Division Adm,inistrator. 

w ASHINGTON, D.C., 

July 6, 1934-

724380-829-30-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The "H hite House. Srn: This i a report on the Supplementary Code of Fair Competition for the Power Transmis ion Subdivi ion of Machinery and 

Allied Product Indu try a Public Hearing on which was held in 

1'T a hington D.C., on December 21, 1933. The Hearing was conducted in full accordance with the provisions of Title I of the 

ir a tional Industrial Reco ery Act. 

GENERAL STATE.ME.J.""IT 

The Power Transmis ion Subdivision being truly representative of 

the manufacturer of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Supplemental 

Code of Fair Competition as provided in the second paragraph of 

Article I of the Code of Fair Competition for the Machinery and 

Allied Product Industry, approved by you on the seventeenth day 

of Iarch, 1934. 

The P ower Tran mi ion Subdivi ion means the manufacture for 

the ale of flat belt pulleys, rope sheaves, coupling , collars, hangers, 

pillow block journal boxe , clutches and other incidental machinery 

and appliance u eel in the tran mission of power, but exclusive of 

shaftingi multiple V-belt driv , belting cut gear , cut tooth and 

ca t tooth sprockets, chain speed reducer and automotive part , 

and part thereof, and includes all those engaged in such manufacture for sale. Employers otherwise engaged in the Farm Equipment Indu try may manufacture for sale and sell power takeoff 

equipment u ·eel in connection with tractors and gear reduction 

device for power take ff for farming machinery, under the provi ion of th Code of the Farm Equipment Industry and not under 

the pro-vi ions of this Code. 

ECONOMIC EFFECT 

Thi Subdivi ion ha been severely a:ffe ted by the r cent depression. Thi is e idenced by the stead3 lecline in annual sale aft r 

1929 from 11,560,000 to 6 ,000 in 1933 or 75 per n . Inve ted 

capital ancl production apacit have d clined 21 p r cent and 7 

p 'l' ·ent r pc -tively sine 1929. 

In 1929 th ubdivi ion n 1 loy cl a1 pr xima ly 2,2 7 factor 

work r whi h total declined to 9 8 in th on l quar r of 193 

58 p r nt. in then emplo m nt in rea d to 1,171 worker a of 

ovemb r 1 1933. 

ti1na cl man hour per w k de line l fr m. 10 17 in Ht,9 to a 

minimum of 13 5 in Jun 193 or 71 p rcent, and incr ascd thereaf r to 36,420 in o ember, 1933. 

(2) 
3 

Average weekly earnings declined from $27.58 in 1929 to a minimum of $10.69 in the fir t quarter of 1933. Sin e then we kly earning increa ed to $16.72 as of November 15, 1933. 

Ba eel on the di tribution as of June 15, 1933 and the sr ecified 

per entag s of the number of wage earners r eceiving le s than the 

de ignated rate the adoption of the propo ed minimum hourly rates 

will a use an incr ea e in hourly f actory pay rolls of this In lu try. 

The wage provi ions for the Sub livision, which is operating under 

the Code of the Machinery and Allied Proch1 ts Industry, provide 

that employees engaged in plant operations shall be paid as follows: 

(1) in citie of more than 50,000 population and their immediate 

vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not 

more than 50,000 population and their immediate vicinity, which 

cities are not in the immediate vicinity of a city of more than 50,000 

population, 38 cents per hour; (3) in cities of 10,000 population or • 

less and their immediate vicinity, which cities are not in the immediate vicinity of a city of more than 10,000 population, 36 cents per 

hour, except that employees engaged in plant operations in all localities in the states of Virginia, North Carolina, South Carolina, 

Georgia, Florida, Tennessee, Alabama, Missi sippi, Arkansas, Louisiana, Texas, and Oklahoma, shall be paid not less than 32 cents per 

hour. 

vVhen females do substantially the same work as males or replace 

males, they shall receive the same pay. However, no female employee shall be paid less than 871⁄2 % of the proper rate for the 

locality in which employed. 

Office boys and girls and apprentices shall be paid not less than 

80% of the minimum wage. 

Employees other than those engaged in plant operations shall receive not less than $15.00 per week. 

This Supplemental Code provides that no person under sixteen 

years of age shall be employed in this Subdivision. 

RESUME OF SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Subdi vision as u ed in this Supplemental Code. 

Article III provides for the adoption of the employment provisions 

of the Code of Fair Competition for the Machinery and Allied 

Products Industry as approved by you and as from time to time 

amended. 

Article IV provides for the adoption of Articles II, VI, VIII, and 

IX of the Code of Fair Competition for the Machinery and Allied 

Products Industry in accordance with the conditions of this Article 

governing their adoption. 

Article V provides for the establishment of the Code Authority 

and defines its powers and duties. 

Article VI provides for an accounting system and methods of cost 

finding and/ or estimating. 

Article VII provides that no products shall be sold or exchanged 

below a reasonable cost when the Cod·e Authority determines that an 

emergency exists~ 
4 

Article VIII provides for methods of setting up, revising, and 

filing price lists and discount she,ets and terms of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Articfo X establishes that no provision of this Supplemental Code 

relating to pricing and marketing shall apply to direct export sales 

or to any product destined ultimately for export. 

Article XI. This Supplemental Code and all the provisions thereof 

are expressly made subject to the right of the President in accordance 

with 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 said Act. Provision is also made that modifications 

may be submitted by the Code Authority. 

Article XII provides means for withdrawal of this Subdivision 

from the Basic Code and its continuance as an autonomous Code. 

• Article XIII establishes that no provision of this Supplemental 

Code shall be so applied as to permit monopolies or monopolistic 

practices or to eliminate, oppress, or discriminate against small 

enterprises. 

Article XIV states the effective date of this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplemental Code having found as herein set forth and on 

the basis of all the proceedings in this matter : 

I find that: 

(a) Said Supplemental Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, including re1noval 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.:itry for the purpose of cooperative action a1nong 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 pos ible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production ( xcept as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemr loyment, by improving 

standards of labor, and by otherwi e rehabilitating indu try. 

(b) Said Subdivision normally employs not more than 50,000 

employees; and is not classified by me a a major industry. 

(c) The upplemental Code as approved complies in all resp cts 

with the pertinent provision,s of aid Title of sail Act, including 

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

Section 7, ancl Subsection (b) of Section 10 ther .of; and that the 

applicant a ·sociation is an indu trial association truly r pr . ·entativ 

of the afore aid ub iivision; and that said asso iation impose no 

in quitablc r tri ·tions on admi . ion to m mbershp ther in. 

( d) The Supr lem ntal de is not d ignecl to and will not r ermit monopolies or monopolistic practices. 
5 

( e) The Suppl mental Code is not desiITT1ed to and will not eliminate or oppre s mall nterpri es and will not operate to di criminate 

against them. 

(f) Tho e eno-aged in other teps of the economic proce s have 

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

Supplemental Co le. 

F or the e rea ons, therefore, I have approved this Supplemental 

Code, provided that certain provisions relating to price publication 

are stayed, as stated in the Order. 

Respectfully, 

JULY 6, 1934. 

H UGHS. JOHNSON, 

Administrator. 
SUPPLEMENT.ARY CODE OF F.AIR COMPETITION FOR 

POWER TRANSMISSIO I DUSTRY 

A DIVISION OF THE 1\I.ACIDNERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial Recovery Act, the :following provisions are established as a Supplemental Code of Fair Competition for the Power Transmission Subdivision of the ~fachinery and .Allied Products Indu try, and, ,together with the Code of Fair Competition for the :Machinery and 

.Allied Products Indu try, hall be the tandard of fair competition 

:for thi Subdivision, and shall be binding on each employer therein. 

ARTICLE II- DEFINITIONS 

"Applicant" means the Po-n er Transmi ion Association a trade 

organization all members o:f which are engaged in the manufacture 

and ale o:f the products o:f the Power Tran mi sion Subdivision of 

Iachinery and .Allied Products Indu try. 

·Industry' means the 1\Iachinery and .Allied Products Indu try, 

a defined in its ode of Fair Competition as appro-,ed by the 

Pre ident and as uch definition ma :fr01n time to time be amended. 

,: ubdivi ion ' mean the Po\Ver Tran rn.is ion Subdivision of the 

:Machinery and Allied Pr duct I ndu~try a defined and set forth 

in paragraph 21 Article II of the Code of Fair Competition for 

the 11achinery and Allied Product Industr , as follow : 

· Po" r Tran mi ion Subdiv-i ion means the manufacture for 

ale of flat belt pulley rope sheave coupling collars, hanger , 

pillow blor·k journal bo:s:e , clutche and other incidental machin ry and appliances u ed in the tran mi ion of power but 

:s:clu ive of hafting multiple Y-belt drive belting cut gears, cuttooth and ca t-tooth spr ckets chain pee 1 reducer and automotive part and parts thereof, and in lude all tho e en aged in 

su h manufacture for ale. · Employer other-n-i~e ncrage 1 in the Farm Equipm nt Indu try 

may manufacture for ale and ell po\Ver take-off equipm nt u eel 

in conne tion with tractors an 1 o-ear r eduction 1 ·vice for po er 

tak -off for farmincr machinery uncl r the provi ion o:f he ode 

f th Farm Equipmcn In lu~tr and no un ler h provision of 

thi ode. · ode mean th Co 1 of Fair ompeti ion :for the Ia hinery 

an l lli cl Pro u t Indu tr a a I prov 1 by th Pr ident :&far h 

17 1934 and a from time t time amen 1 d. 

P r on m an a natural p r n a partner hip a orp ra ion 

an a o iati n a. tru t, a tru t a ru t e in bankru1 t y, a r c iYer 

or other entity. 

(6) 
7 

" Employer" means any person engaged in this Subdivision of 

the Industry, either on hi own behalf or as an employer of labor. 

"Employee" means any one who is employe 1 in this Subdivi 'ion 

by any such employ r. 

' The Act" means Title I of the National Indu trial Recovery 

Act. 

"The President " means the President of the United State . "Adniinist1·ator" means the Administrator for Indu trial Recovery. 

' Basic Code Auth01'ity" means the Code Authority for the Ma- chinery and Allied Products Industry as con titutecl by the Code. 

"Code Awthority" means the Code Authority con tituted for this 

Subdivision as provided by the Code and by this Suppl m ntal Code. 

"Groit,p Code Authority" mean the Code Authority for any 

Group or product cla sification within this Subdivi ion, constituted 

under the authority of Article V of this Supplemental Code. 

"Method of Pricing" means net price lists and terms of sale and 

payment, or price lists with discount sheet and terms of sale and 

payment. 

"Publish" means to make available to all intere ted parties. 

ARTICLE III-EMPLOYMENT PROVISIONS 

The following Articles of the Code, viz: Article III, "Working 

Hours"· Article IV "Wao-es "· and Article V "General Labor 

) ) b ' ' Provisions " are hereby made a part of this Supplemental Code, 

with the same effect as if they were written into this Supplemental 

Code. 

ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE 

The following Articles of the Code, viz: Article II, " Definitions "; 

Article VI, "Administration", to the extent that they will be applicable to this Supplemental Code as such or as it may hereafter be 

administered as an autonomous Code; and Article VI II , ":Modifications and Terminations", are hereby adopted and make a part of 

this Supplemental Code, with the sam·e effect as if they were written 

into this Supplemental Code. 

ARTICLE V-ADMINISTRATION 

During the period not to exceed sixty days, following the effective 

date of this Supplemental Code, the code committee of the Appli ant 

shall constitute a t mporary Code Authority. This committee shall 

consist of not le s than 3 and not more than 8 m·embers, and the Ad- mini trator, in his di cretion, may appoint one additional member 

(without vote and without expen e to this Sub livi ion). 

(a) To permit representation of employers who are not members of 

Applicant, the Applicant shall, within sixty days after this Supple- mental Code becomes effective, set up a permanent Code Authority 

to succeed the temporary Code Authority to administer and supervise 

and to facilitate the enforcement of this Supplemental Code. 
8 

(b) Thi Subdi,i ion ha,ing held an election £or permanent 

Code Authorit , un ler the pro,i ion of the Code of Fair ompetition for the :Machinery and Allied Products In ln try, the Code 

Authorit , o ele ted hall con titute the first perm.anent Code Authority for thi ubdi-vi ion if this method of election meet with 

the approval of the Admini trator. I f thi m thod of election 

does not meet with the approval of the A lmini trator, then the 

provi ion hereinbelow provided hall apply for the election of the 

fir t perL1anent Code Authority. For elections after the fir t, the 

pro,i ion of thi Supplemental Code for election of a permanent 

Code Authority hall apply. ( c) If the permanent Code Authority above mentioned is not 

approved, the permanent Code Authority hall be elected at a 

meetinO' calle l for this purpcse, to which all known employers in 

thi Subdivi ion shall b invited by letter ent by reo·istered mail, 

with the right to -vote either in per on or by proxy. This permanent Code Authority shall con i t of not less than 5 and not more 

than 9 member and, in addition thereto, the repre entati-ve of the 

Admini trator a referred to in the paragraph above. Of the electi, e rn mber of permanent Code Authority, one member may be 

cho en by the employer (if any) who are not member of the Applicant provided such r presentation hall be desired by uch eniployers. In the election of the remaining members of permanent 

Code Authority each member of the Applicant shall have one vote, 

and a majority vote of members of the Applicant hall elect. 1:en1-

bers of the permanent Code Authority o elected shall hold office 

for term provided for in the permanent Code Authority Constitution and By-Laws. 

Any employer in this Subdivision shall be entitled to vote at the 

el ction of, and hare in the benefits of, the Co le Authority, and participate in any endeavor of the Code Authority in the preparation 

of any revi ion of or additions or upplements to, thi Supplemen- tal Code by paying hi proper pro rata hare of the reasonable cost 

of admini tering it, a determined by the Code Authority. 

A e sments for defrayincr the expen e of administering the Code, 

a determined by the Code Authority hall be pro rated among 

employer at uch times and in uch amounts as may be determined 

by a majority vote of the mployers entitle l to vote; such as e sments 

to b pro rated upon the ba i of gro sales of the product of the 

ub livi ion f .. b. cars at point of manufacture, for the pr ceding 

cal ndar year. For the purpo e of computincr uch a e ments, ea h employer 

hall submit upon reque t of the ode Authorit an a urat tate- m nt cov rincr th al made during the abo,e tated period. 

The de Authority hall ha e no a tivitie not r lat d to th provi j n of thi uppl m ntal ode or the ode. ny mi 1 . r in the 

ubdivi i n hall be liO'ible for memb r hip in the ppli ant oiation. In or 1 r that th Cod Authority hall at all time , be truly repr . nta i~ f the ubdivi i n and in oth r r I ts c mply with the 

provi i n of th ct h dmini trator may pr crib u h h arincrs 

a he m . d m I r per· ancl, ther aft r if he hall find that the 

o e uth rity is not truly repre entatfre or does not in other 
9 

respects comply with the provisions of the Act, may require an 

appropriate m dification in the method of selection of the Code 

Authority. 

( d) F r the purpose of admini tering and facilitatino- the enforcement of the provisions of this Supplemental Code, Code Authority, 

by it duly authorized representatives (who shall not be an employer or in the employ of any employer affected by this Sup- plem ntal Co le) shall hav access to any an l all statistics, data 

and information filed in accordance with the provi ions of the 

Code and this Supplemental Cod . All individual statistics, data 

and information of individual employer , as fil d in accordance with 

the provi ions of the Code and this Supplemental Code, shall be 

kept confidential, except with the consent of such employer pertaining to his own tatistics, and providing that nothing herein shall 

prevent publication of general surn.maries of uch statistics of this · Subdivi ion. 

( e) For administrative purp ses, employers may be grouped by 

Code Authority to bring into working association employers having 

comn1on interests and problems that are not common to all em- ployers. Each uch group hall desi nate from among its members a 

Group Code Authority, and may adopt such rules for the conduct of 

the business of the Group ·as are not inconsistent with the provisions 

of this Supplemental Code and the Code; provided, however, that 

provision of this Article V shall control the making of all examinations or audits and the use to. be made of information so obtained 

with respect to any employer. 

(f) Except as otherwise provided in this Supplemental Code, the 

Code Authority or a Group Code Authority shall haYe power to 

hear all matters pertaining to the provisions of this Supplemental 

Code which may be submitted to it by any em! loyer in it Group, 

having relation to the employers in said Group, or any of them, and 

to that end, to the extent permitted by the Act, may investigate and 

ascertain the facts through such examination or audit a such Group 

Code Authority may deem necessary. All matters pertainin,g to a 

particular group shall be referred in the first instance to the Group 

Code Authority for that Group, if any has been established. 

Any decision of the Group Code Authority shall be final unless 

appeal is taken to the Code Authority or such decision involves matters requiring to be reported to the Code Authority, in which case 

pertinent information, papers and data in the possession of the 

Group Code Authority shall be turne I over by it to the Code Authority, and the Code Authority shall pas on the merits of the 

case and make final deci ion or report thereon to the Basic Code 

Authority or the Administrator. 

(g) The Code Authority or a Group Code Authority may act, 

within its powers, on the affirmative vote of a majority of its elected 

member ; provided that any propo al receiving les than a majority 

vote shall be ubmittecl, upon the reque t of any member of the Code 

Authority or Group Code Authority havino- Jurisdiction, to a vote 

of all employers entitled to vote under this Supplemental Code or of 

all the employers entitled to vote comprising the Group effected 

respectively, and the Code Authority or Group Code Authority 
10 

having jurisdiction shall act as determined by the majority of the 

number of votes so cast. 

(h) If any employer in this Subdivision is also an employer in 

any other Subdivision of the Indu try, or in any other Industry, the 

provisions of this Supplemental Code~ and the jurisdiction of the 

Code Authority hereunder, shall apply to and affect only that part 

of his busine s and product which is included in this Subdivision. 

(i) An appeal from any action taken, or any rule or regulation 

established affecting the right of any employer or employee in this 

Subdivision, may be taken to the Basic Code Authority and thereafter to the Administrator. 

(j) Nothing contained in this Supplemental Code shall constitute 

the members of the Code Authority or any Group Code Authority as 

partners for any purpose. Nor shall any member of the Code Authority or of any Group Code Authority be or become liable in any 

manner to anyone for any act of any other member, officer, agent or 

employee of the Code Authority or any Group Code Authority exercising reasonable diligence in the conduct of his duties hereunder, 

nor be or become liable to anyone for any action or omission to act 

under this Supplemental Code and the Code, except for his own willful misfeasance or non-feasance. 

(k) The Code Authority may appoint a trade practice committee 

which shall meet with the trade practice committees appointed under 

such other codes as may be related to the Subdivision for the purpose 

of formulating fair trade practices to govern the relationships between production and distribution employers under this code and 

under uch others to the end that such fair trade practices may be 

propose l to the Administrator ns amendments to this code and such 

other codes. 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority shall cause to be formulated an accounting 

system and methods of cost finding and/or estimating capable of use 

by all employers of the Subdivision. After such system and methods 

have been formulated, full details concerning them shall be made 

available to all employers. Upon approval by 662/3% of the employers, uch accounting system and methods of cost finding and/ or estimating hall become effective and thereafter all employer hall 

determine and/ or estimate costs in accordance with the principles 

of uch methods. 

ARTICLE VII-SELLING BELOW REASON ABLE CosT 

"\Vhen the Code Authority determines that an em ro-ency exi ts 

in this Subdivision, and that the cau e thereof is d tructive pri ecutting uch as tor nder in ffectiv or ri u ly ndanger th maintenan e of the provi ions of this Supplemental Code, the Code uthority may cau e to be d t rmin d th lowe t r asonabl o t of the 

product r products of this Subdivision, such determination to 'be 

ubject to u h noti and hearing as the Administrator may require. The dmini trator may approve, di approve, or modify the 

d t rmination. Ther after, durin~ the period of the emergency, it 

shall be an unfair trade practice tor any employer of the Subdivi-
11 

sion to sell or offer to sell any product or pro 1uct of the ubdivision 

for hich the lo"TI" t rea nabl co t ha been determined at such 

pric s or upon such terms or conditions of al that the buy r will 

pay less ther for than the lo"TI"e t reasonable ost of uch product or 

products. 

,vhen it appears that conditions have changed, the Code Author- ity upon its own initiatiYe or upon the request of any interested 

party shall cause the determination to b reviewed. 

For the purpose of gathering statistical data for the determination or revision of a lowest rea onable cost, the Administrator may 

require each employer to furnish such information concerning the 

co t of manufacturing and selling as the Aclministr!ltor shall deem 

necessary or proper for such purpo e. 

ARTICLE VIII- 1ETHODS OF PRICING AND TER?.IS OF PA Y:MEXT 

(a) If and when the Code Authority determines that in any branch 

or group of the Subdivision it has been the generally recognized 

practice of at least two-thirds of such branch or group of the Subdivi ion to sell a specified product on the ba is of net price Ii ts, or 

price lists with di count sheets and term of sale and payment, each 

employer manufacturing such product shall, within ten days after 

notice of such determination, file with the proper Group Code Authority ( or with Code Authority if there is no Group Code Authority 

having jurisdiction) net price lists or price lists with discount sheets 

and terms of sale and payment, individually prepared by him, showing his current method of pricing, and the Group Code Authority or 

Code Authority shall immediately publi h and send copies thereof 

to the employers of this Subdivision cooperating under this Code, 

as described in Article V ( c), and who manufacture like products. 

Revisions of the method of pricing and terms of sale and payment 

may be filed in like manner, from time to time thereafter, with the 

proper Group Code Authority or Code Authority by any manufacturer of such products, each such revision to become operative upon 

the date specified therein, but such revised method of pricing shall 

be filed with the proper Group Code Authority or Code Authority 

10 days in advance of operative date. Copies thereof, with notice of 

the operative date specified, shall be immediately published and sent 

to all employers manufacturing such product or products cooperating 

under this Supplemental Code, as described in Article V ( c), any of 

wh_om may file, if he so de ires, revisions of his methods of pricing, 

v; hich shall become effective upon the date when the revised method 

of pricing first filed hall go into effect.1 

(b) If and when a Group Code Authority or Code Authority 

shall determine that in any branch or group of the Subdivision not 

now selling its products on the basis of price Ii ts, with or without 

discount sheets, with terms of ale and payment, the di tribution or 

marketing conditions in said branch or group are the same as, or 

similar to, the distribution or marketing conditions in a branch or 

group of the Subdivision where the use of price lists, with or without discount sheets, is well recognized, and that a system of elling 

on net price Ii ts, or price lists with discount sheets and terms of sale 

1 See paragraph 2 of order approving this Code. 
12 

and papnent, should be put into effect in such branch or group, 

then each manufacturer of the product or products of such branch 

or group shall, within twenty (20) days after notice of such determination, file with Group Code Authority or Code Authority net 

price lists or price li ts with discount sheets with terms of sale and 

payment, howing his method of pricing, and such method of pricing may be thereafter revised in the manner hereinabo, e provided. 

Provided that Group Code Authority or Code Authority shall make 

no determination to place any product of the Subdivi ion (not now 

on a price list basis) on a price list basis, as provided in this paragraph (b) of Article VIII, unle s two-third of the employers cooperating under· this Supplemental Code as described in Article V 

( c), who are at that time engaged in manufacturing such product, 

shall affirmatiYely con ent that such determination be made. 

( c) No employer shall sell directly or indirectly, by any means 

whatsoever, any product of thi Subdivi ion at a price or at discounts or on terms of ale and payment different from those provided 

in •his own current method of pricing and terms of sale and payment, as covered by the provisions of this Article VIII and proceedings thereunder. 

ARTICLE IX-TR...\.DE PRACTICES 

Ea.ch of the following acts and practices is deemed to be inimical to the best interests of the Subdivision and of the public, and 

each i , therefore, hereby declared to be, and to constitute, an unfair 

method of competition, viz: 

(1) Inaccurate advertising.-No employer shall publish advertising ( whether printed, radio, display or of any other nature), 

which is mi leading or inaccurate in any material particular, nor . hall any employer in any way misrepresent any goods (inclu ling 

but without limitation, its use, trademark, grade, quality, quantity, 

origin, size, substance, character, nature, finish, material, content or 

preparation) or credit terms, values, policies, services, or the nature 

or form of the business conducted. 

(2) False Billing.-No employer shall knowingly withhold fr01n 

or in ert in any quotation or invoice any statement that makes it 

inaccurate in any material particular. 

(3) Inaccurate Labelling.-No employer shall brand or mark or 

pack any goods in any manner which is intend d to or does deceive 

or mi lead purchasers with respect to the brand, grade, quality, 

quantity, origin, size, substance, character, nature, fini h, material 

content or preparation of such goods. 

(4) Defamation.-No employer shall defame a comp titor by 

fal ly imr uting to him di honorable conduct, inability to perform 

contra t , qu t10nable credit standin<Y, or by other fal e r pre enta- tion, or by fals ly disparaging the orade or quality of hi goods. 

( 5) D stru,ctive Price Outting.-N o employer shall indulge in 

d tru tive price utting. 

(6) Threats of Law Swit .-No employer shall publish or circulate 

unju tifi d or unwarrant d threats of leoal proc dings which tend 

to or have the effect of haras ing competitors or intimidating their 

cu tomcrs. 
13 

(7) Seeret Rebates.- o employer hall secretly offer or make any 

payment or allowance of a rebate, refund, ommission credit, unearned di count or exces allowance, whether in the form of money 

or otherwi e, nor shall an employer secretly offer or extend to any 

cu tomer any special ervice or privilege not extended to all customers of the ame class, for the purpose of influencing a sale. 

(8) Bribing Employees.-No employer shall give, permit to be 

given, or offer to o-ive, anything of value for the purpose of influencing or rewarding the action of any employee, agenti or representative 

of another in relation to the business of the emp oyer of uch employee, the principal of such agent or the represented party, without 

the knowledge of such employer, principal or party. This provi ion 

shall not be construed to prohibit free and general distribution of 

articles commonly used for advertising except so far as such articles 

are actually used for commercial bribery as hereinabove defined. 

(9) Inducing Breach of Ewisting Oontracts.-No employer shall 

wilfully induce or attempt to induce the breach of existing commercial contracts between competitors and their customers by any false 

or deceptive means, or interfere with or obstruct the performance 

of any such contractual duties or services by any such means with 

the purpose and effect of hampering, injuring or embarrassing com- petitors in their business. 

(10) Procuring Confidential lnform,aJtion.-No employer shall 

procure, otherwise than with the consent of any other employer, any 

information concerning the business of such other employer which is 

properly regarded by such other employer as a tra le ecret or confidential within his or its organization other than information relat- ing to a violation of any provision of the Code. 

(11) Discounts.-No employer shall sell on the ba i of a dollar 

volume discount. This shall not prohibit quoting of quantity discounts on published price list. 

(12) Oonsignnients.-No employer shall consign any product to 

anyone or any class of trade, except in trading areas where existing 

competing stocks are now maintained by an employer; provided, 

however, that the following practices are permitted: 

(a) The transfer of an existing consignment from one con ignee 

to another consignee in the same trading area; 

(b) The conversion of a bona fide sale into a con ignment for the 

purpose of protecting the seller when the purchaser is financially 

embarr·assed. ( c) The conducting of field tests or demonstrations of newly 

de igned product or of a new application of a product by any emplo:5 er, without compensation. 

(13) Guaranties.-No employer shall guarantee any product beyon 1 the guaranty as specified in the terms and conditions of sale 

on file with the Code Authority and in effect at the time of the sale 

of su h product; this does not apply to performance or capacity 

guaranty. 

ARTICLE X-SALES FOR EXPORT 

The provi ions of this Supplemental Code concerning pricing and 

marketing shall not apply to direct export sale of any product, 

or to sales of any product destined ultimately for export. The term 
UNIVERSITY OF FLO RIDA 

14 II I II IIIIII Ill Ill lllll lllll II IIIIII II IIII IIIIII II IIIII IIIII Ill I I 

3 1262 08583 0320 

"export" shall include all shipments to all places without the several 

states of the United States and the District of Columbia; provided, 

however, that no shipment to any territory or possession of the 

United States shall be considered as export when any employer is 

engaged in the Subdivision in such territory or possession. 

ARTICLE XI-MoDIFICATio:xs 

(a) As provided by Section 10 (b) of the Act, the President may 

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

rule or regulation issued under Title I of the Act. 

(b) As tudy of the needs of the Subdivision is continued after 

the effective date, amendments, additions, or revisions to this Supplemental Code may be proposed, which, upon being assented to in 

writing by two-thirds vote of employers co-operating under this 

Supplemental Code, shall be in full force and effect from and after 

approval thereof by the President. 

ARTICLE XII-WITHDRAWAL 

Upon thirty days notice to the Basic Code Authority and to the 

Administrator, this Subdivision may, upon the concurring affirmative vote of employers within the said Subdivision entitled to cast 

two-thirds or more of all the votes that might be cast by all employers 

within the subdivision entitled to vote thereon, withdraw from the 

juri diction of the Basic Code Authority. The eligibility of voters 

and the method and effect of such voting shall be in accordance with 

the provisions of Article V hereof. After and in the event such 

withdrawal is accomplished, this Supplemental Code, together with 

the provi ions of the Code, shall become and be the sole code governing this Subdivision, and the Code Authority shall, for this Subdivision, become and be the sole Code Authority and shall perform 

all the functions with respect thereto. 

ARTICLE III-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

member hip therein. The Supplemental Code presented by it is not 

de igned to promote monopoly, and shall not be so construed or applied a to oppress or eliminate small enterprises or discriminate 

against them, and is designed to effectuate the policy of the Act. 

ARTICLE XIV-EFFECTIVE D ATE 

Thjs Supplemental Code shall become effective and binding on all 

employers in the Subdivision on the eleventh day after its approval. 

Approved Code No. 347-Supplement No. 25. 

R gistry No. 1399---63. 

0