Approv d ode No. 84-Supplement No. 18 Registry No. 1104-11 

NATIONAL RECOVERY ADMINISTRAT ON 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

SCREW MACHINE PRODUCTS 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON APRIL 28, 1934 

WE DO OUR PART 

fAll 1~ 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON: 193' 

For sale by the Superintendent of Documents, Was hin![ton, D.C. - - - - - - - - P~ice 5 cenUI 
This publication is for sale by the Superintendent ot: Documents, Government 

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

J1oreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT 011 COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

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

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

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 1 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 84- Supplement No. 18 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

SCREW MACHINE PRODUCTS MANUFACTURING 

INDUSTRY 

As Approved on April 28, 1934 

ORDER 

APPROVING SuPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE 

SCREW 11ACHINE PRODUCTS MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

METAL FINISH! TG AND METAL COATING INDUSTRY 

An application having been duly made pursuant to and in full compliance with the provisions of Title I of theN ational Industrial Recovery Act, approved June 16, 1933, and in accordance with the provisions of Section I of Article VI of the Basic Code for the Fabricated 

Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the Screw Machine Products 

Manufacturing Industry, and hearing having been duly held thereon; 

and the annexed report on said Supplementary Code, containing findings with respect thereto, having been made and directed to the 

President: 

NOW, THEREFORE, on behalf of the President of the United 

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

pursuant to authority v sted 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 

respects with the pertinent provisions and will promote the policy and 

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

upplementary Code of Fair Competition be and it is hereby appro ed; subject, however, to the following conditions: 

53812°----482- 178----34 (1) 
2 

1. That the application of the provisions of Schedule A attached 

thereto and made a part thereof be and it hereby is stayed for a period 

of sixty (60) days from the date hereof, in order to afford an opportunity to consider any objections thereto by interested parties and 

at the expiration of said period such provisions shall become effective 

unless I, by my further order, otherwise direct; and 

2. That Paragraphs F and G of Section 1, Article V be deleted. 

Approval recommended: 

A. R. GLANCY, 

HuGH S. JoHNsoN, 

Administrator for Industrial Recovery. 

Division Administrator. 

wASHINGTON, D.C., April 28, 1934. 
REPORT TO THE PRE IDE T 

Th PRE IDE T, 

The vrhite Elou e . 

• IR: Thi i a r port on th Suppl mcntary Cod of Fair Competiti n for th r w Ma hine Products Manufacturing Industry, a 

divi ion of th Fabricated J\1etal Products Manufacturing and Metal 

Fini bing and Metal Coating Industry, the hearing having been conduct d ther on in Wa hington, D.C., February 9, 1934, in accordance 

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

GE ERAL STATEMENT 

The Screw J\ifachine Products Manufacturing Industry, being truly 

repr sentati-ve of this division of the Fabricated Metal Products 

J\1anufa turing and J\ifetal Finishing and Metal Coating Industry, 

has elected to avail itself of the option of submitting a Supplementary 

Code of Fair Competition, as provided for in Section 1 of Article VI 

of the Basic Code, for the Fabricated Metal Products J\ifanufacturing 

and J\1etal Finishing and Metal Coating Industry approved by you 

on the second day of November, 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Supple1nentary Code. 

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

Article III: This Industry is a division of the Fabricated Metal 

Products Manufacturing and Metal Finishin~ and Metal Coating 

Industry and the labor provisions of its Bas1c Code, as approved 

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

Code. 

Article IV establishes a Supplementary Code Authority consisting 

of seven (7) members to be elected by the members of the Industry 

at a meeting called by the Temporary Supplementary Code Authority, 

and gi es the Administrator the authority to appoint one additional 

member without vote and provides machinery for obtaining statistics 

and the administration of the Supplementary Code. 

Article V sets forth the unfair trade practices of this Supplementary 

ode whi h has been e p cially designed to offset unfair competition 

in thi divi ion of the Indu try. 

Article VI provides against n1onopolies and monopolistic practices. 

rticlc VII contflins the mandatory provisions contain din Section 

10 (b) and also provid s for the submi sion of propo d amendments 

to th uppl m ntary e. 

Article VIII r cogniz that pri incr a cs be limited to actual 

additional in r ases in tb eller's st . Arti le I/- stat s th ff ctiv dat an duration of this upplem ntary ode. 

(3) 
4 

Schedule A sets forth the formula for estimating cost. 

Schedule B sets forth standard terms and conditions of sale. 

FINDINGS 

The Deputy Administrator in his final report to me on said Supple· 

mentary 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, includillg 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 industry for the purposes of coo:perative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervision, 

by eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of indu.strial 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 industry. 

(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 thereofj and that the applicant group 

is an industrial group truly representative of the aforesaid Industry; 

and that said group imposes no inequitable restrictions on admission 

to membership therein. 

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

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) Those 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, 

APRIL 28, 1934. 

HuGH S. JoHNSON, 

Administrator. 
SUPPLE11ENTARY CODE OF FAIR COMPETITION FOR 

THE SCREW MACHINE PRODUCTS MANUFACTURING 

INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING 

AND METAL 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 Supple- mentary Code of Fair Competition for the Screw 11achine Products 

Manufacturing Industry. Pursuant to Article VI of the Basic Coda 

of Fair Competition for the Fabricated Metal Products Manufactn.uing and Metal Finishing and Metal Coating Industry approved 

by the President on the 2nd day of November, 1933, the provisions 

of this Supplementary Code shall be the standard of fair competition 

for such Industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

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

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

States, the National Industrial Recovery Act, and the Administrator 

for Industrial Recovery under said Act. 

SEcTION 2. The term "Industry" and/or "Screw Machine Products Industry" means and includes the business of manufacturing 

Screw Machine Products for sale. 

SECTIO 3. The term "Screw Machine Products" means and includes any products first made from rod or tubing or other material 

on either automatic or hand screw machines which .are made to 

customer ' specifications or stocked by members of the Indusky for 

future sale to customers except such products as are assembled by 

the original manufacturer with products other than Screw Machine 

Products and which thereby become an identifiable unit subject to 

another particular code or codes approved or to be approved by the 

President and except such products as are made in many different 

sizes of the same or similar form for stock by all manufacturers and 

become identified thereby as a standard article and as a separate 

industry subject to a particular code or codes approved or to be 

approved by the President, and except semi-finished nuts fabricated 

from ferrou or nonferrous metals. 

SECTION 4. The term 11member of the industry" as used herein, 

include , but without limitation, any individual, partnership, association, corporation, or other form of enterprise, engaged in the 

industry ei her as an employ r or on his or its own behalf. 

ECTION 5. The term 11 roduct" mean and includes cr w Ma- chine Products, as that term i defin d herein. 

(5} 
6 

SECTION 6. The term "Employee" as used herein includes anyone 

engaged in the Industry in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of such 

compensation. 

SECTION 7. The term "Ernployer" as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 8. The term "Basic Code" as used herein is defined to 

mean the Basic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry as approved by the President on the 2d day of November, 

1933. 

SECTION 9. The term "Association" means National Screw Machine Products Association, or its successor. 

SECTION 10. The term "Board of Directors" means Board of Di- rectors of National Screw Machine Products Association, or its 

successor. 

SECTION 11. The term "Managing Director" means Managing 

Director of National Screw Machine Products Association or such 

other impartial and confidential agency as the Supplementary Code 

Authority may designate. 

SEcTION 12. The term "Supplementary Code Authority" as used 

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

Supplementary Code as hereinafter provided. 

SECTION 13. The term "Member of the Code" as used herein shall 

mean any member of the Industry who shall have assented to the 

provisions of this Code by instrument in writing duly filed with the 

Managing Director. 

ARTICLE III-EMPLOYMENT PROVISIONS 

This Industry is a division of the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

and the wage, hour and labor provisions in Article III of its basic code 

as approved by the President November 2d, 1933, including Section 

1 of said Article III by which the provisions of Subsections (1), (2) 

and (3) of Se~tion 7 (a) of Title I of the Act are made conditions of 

this Code, are specifically incorporated herein and made a part hereof 

as the wage, hour and labor provisions of this Supplementary Code. 

ARTICLE IV-ORGANIZATION AND ADMINISTRATION 

SECTION 1. During the period not to exceed sixty (60) days follow- ing the effective date, the Board of Directors shall constitute a Temporary Supplementary Code Authority, who shall have all the powers 

and duties of the Supplementary Code Authority herein set forth, 

until the Supplementary Code Authority is elected. There shall be 

constituted within the sixty-day period a Supplementary Code Au- thority consisting of seven (7) members to be elected by the members 

of the Industry in the manner hereinafter provided, at a meeting 

called by the Temporary Supplementary Code Authority, upon ten 

days' notice sent by registered mail to all members of the Industry, whose names can be ascertained after diligent search, who may vote 

either in person or by proxy. The members of the Supplementary 

Code Authority first elected shall· serve until the following annual 

meeting of the Association and until their successors are elected, and 
7 

th r after, m mb r of the upplem ntar d Auth rity hall be 

fter a h annual m eting_ f th A o iation to 

n until h ir u c or ar el t . o i of a h l ti n hall 

be nt in the mann r ab v pro id d. Th memb r hip of the 

uppl m ntary de uthority ball e mud up a follow : 

(a) Fi (5) m mb r who hall b m mb r of th Indu tr 

by a m jorit~ vot of h m mber of th A o iation pr nt in p r- on orr pr nted by proxy, ea h memb r to ha one te. (b) Two (2) m mb r , v ho are not member of the A o iation to 

be nominated and el ct d by majority vote of the m mb r of the 

Indu try ' ho ar not mem er of the Association, pre nt in per on 

or repr ent d by prox , each m mber to have one ot . In the vent 

that th aid non-members of the Association should fail to elect aid 

v;o (2) members from among their number, or in the event of a 

vue nc occurring in this number, the Supplementary ode Authority 

shall submit several nominations of members of the Industry not 

member of the A sociation to the Administrator, who shall thereupon 

name such member or members. 

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

Code Authority may be filled by majority vote of the remaining 

As ociation members of the Supplementary Code Authority. 

(d) In addition to the abo e the Administrator may appoint one 

(1) representative without vote and without expen e to the Indu try, 

unle s the Supplementary Code Authority agrees to pay such expenses, 

to serve with aid Supplementary Code Authority in the admini tra- tion of this Supplementary Code. Said representative shall be 

entitled to reasonable notice of all meetings of the Suppl mentary 

Code Authority. 

SECTION 2. Any Association/Institute and/or Bureau 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, Regulation and any amend- ments ' hen made thereto, together with such other information as 

to member hip, organization, and activities as the Administrator may 

deem nece sary to effectuate the purposes of the Act. 

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

at all time , be truly representative of the Industry and in other 

re pects comply with the provisions of the Act, the Administrator 

may prescribe such Hearings as he may deem proper; and, thereafter, 

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

repre entati e or does not in other respects comply with the provi ion of the Act, may require an appropriate modi£. ation in the 

method of selection of the Supplementary Code Authority. 

ECTION 4. The Supplementary ode Authority is hereby consti- tuted the agen y to admini ter the provisions of this Supplementary 

ode and o coli ct and di tribute all tatisti al r ports of the Industry. With a vi w to keeping the President informed a to the obser - an e or non-ob r ance of thi uppl mentary ode, aid agency 

hall c ll t through the Managing Dir tor, u h tati ti a all d 

f r by the Pre id nt and jor th dmini trutor and send th min u h 

f rm a the Pr id n and /or th A mini trutor may r q uir to the 

Fabricntf'd M t, l Pr du t ~ d ration, or u e r organization4 a 

34-2 
8 

the agency administering said •Basic Code. All individual reports 

shall be treated as confidential by the Managing Director and shall 

not be disclosed to any member of the Industry or any other-party 

except where necessary in the enforcement of this Supplementary 

Code and except to such governmental agencies as may be directed 

by the Administrator. 

SECTION 5. Said agency shall also from time to tim.e furnish to the 

Basic Code Authority, designated in said Basic Code, such information as may be required to be furnished under the terms of said Basic 

Code. 

SECTION 6. The Supplementary Code Authority shall have power 

from time to time to require each member of the Industry to furnish 

to the Managing Director such information concerning the production, shipn1ents, sales and orders of each such member and the hours 

of labor, rates of pay and other conditions of employment at the plant 

or plants of such member and such other information as the said 

Supplementary Code Authority shnll deem necessary or proper in 

order to effectuate the purposes of this Supplementary Code and the 

policy of the Act. All individual reports shall be treated as confidential by the Managing Director and shall not be disclosed to any 

member of the Industry or any other party except where necessary 

in the enforcement of this Code and except to such governmental 

agencies as may be directed by the Administrator. 

SECTION 7. The Supplementary Code Authority may require that 

any such information be furnished periodically at such times as it 

shall specify and may require that any or all information furnished be 

sworn to or otherwise certified or authenticated as it shall prescribe. 

Failure of any member of the Industry promptly to furnish to the 

Managing Director information required by the said Supplementary 

Code Authority and substantially in the form prescribed by it shall 

constitute a violation of the Code. The Supplementary Code Author- thority shall not require any information regarding trade secrets. 

SECTION 8. Any or all inforn1ation furnished to the Managing 

Director by any corporate member of the Industry specifically 

assenting hereto pursuant to the provisions of this Code, shall be 

subject to verification by an examination of the pertinent books, 

accounts and records of such member by the Managing Director or 

by any accountant or accountants or other person or persons desig- nated by the Supplementary Code Authority (none of whom shall 

be connected with any n1ember of the Industry) and shall be so 

checked for such pm'pose, if the Supplementary Code Authority 

shall require it. The cost of each such examination shall be treated 

as an expense of administering the Code. 

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

participate in and share the benefits of the Supplementary Code 

Authority; shall be entitled to vote in the selection of the Supplementary Code Authority as provided in Section 1 of this Article; and 

shall pay to the Managing Director as the agent of the Supplementary 

Code Authority their reasonable share of the expenses of the Admin- istration of this Supplementary Code, such reasonable share to be 

determined by the Supplementary Code Authority, subject to review 

by the Administrator on the basis of volume of business and/or such 

other factors as may be deemed equitable by the Supplementary 

Code Authority. 
9 

ntaincd in this upplem n ar d shall 

th m mbc f h uppl m nary 

partne for any purpos , what Yer. r shall 

uppl m ntary od Auth ri y b liabl in ny 

mann r to an n f ran a t f ny oth r memb r, ffi r, ag nt r 

mpl f th uppl m ntar od Authority. or hall any 

mem r of th upplem n ary o c uthori .... , x r ising r son l 

dilio- nc in th c n uct of his du ie h r und r, be li bl t any ne 

for n ... c i n or omi "'ion to a t u1 d r this upplem ntar ode 

x p for hi ow willful mi feasance or non-f a nne . 

ECTIO 11. If ny m mb r of the Indu try a defined her in is 

al a member of an oth r Industry, the prov-ision of thi ode 

hall apply to and aff ct only that part of his bu ine ,x;hich is in- lud in the Indu tr . ECTIO 12. The upplem ntary Code uthority shall without any 

]imitation on the foregoing have the following furth r gen ral powers 

and duties subject to such rules and regulation as may be prescribed 

by the Admini trator. 

(a) To insure the execution of the provisions of this Supplementary 

Cod and provide for the compliance of the Industry \'lith the provi- sions of th A t. 

(b) To adopt by-l::nvs and rules and r gulations for its procedure 

and for the administration of the Suppl mentary Cod . ( ) To obtain from members of the Industry such information and 

reports as arc required for the administration of the Supplementary 

ode. In addition to information required to be submitted to he 

upplementary Code Authority, all or any of the persons subject to 

thi upplementary Code shall furnish such stati tical information 

a the Admini trator may deem necessary for the purposes recited 

in se tion 3 (a) of the A t to such Federal and State agencies as the 

Administrator may designate. Provided that nothing in this Supple- mentary Code shall relieve any member of the Industry of any existing 

obli<Yation to furnish reports to any government agen y . (d) To use such trade associations and other agencies as it d ems 

prop r for the carrying out of any of its activities provided for her in, 

pro,ided that nothing herein shall relieve the Supplen1entary Code 

Authority of it duti s or responsibilities under this Supplementary 

ode and that su h trade associations and agencies shall at all times 

be u j ct to and comply with the provi ions h reof. 

(e) To make r commendations to the Admini trator for the 

oordination of th admini tration of this Supplementary Code with 

u h other ode , if any, as may be related to th Industry. 

(f) To ur from members of the Indu try an equit ble and pro- p rtionate payment of the rea onabl expen es of maintaining the 

upplementary od Authority and its a tivities. 

(g) To oopera e with the A mini tr tor in regul ting the u of 

any .R. . in ignia solely by tho members of th ndu try who have 

a ent to, an l ar omplying -.ith, thi uppl m ntary od . (h) To r omm nd to the Admini trator furth r fair trad practice 

provi i n to govern m rob r f he In u try in th ir relation wi h 

each her r with o r in ustri and tor commen to th Admini - trat r m a ures for industrial planning, including stabilization of 

employm nt. 
10 

SEcTION 13. 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 interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

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

Supplementary Code Authority or agency regarding the matter com- plained of may be taken if approved by the Administrator but shall 

not be taken if disapproved by the Administrator within thirty days 

of notice to him of intention to proceed with such action. 

ARTICLE V-UNFAIR PRACTICES 

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

practices shall be deemed to be unfair methods of competition in 

commerce within the meaning of the Federal Trade Commission Act 

as amended, and the using or employing of any of them shall be1 

deemed to be a violation of the Code, and any member of the Indus- try who shall directly or indirectly, through any officer, employee, 

agent or representative, knowingly use or employ any of such unfair 

practices shall be guilty of a violation of this Code. 

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

the cost of such product to any individual employer determined 

according to the estimating formula set forth in Schedule A hereof, 

or the violation of any provision of said Schedule. Pro ided,~ however, that dropped lines, seconds or inventories 

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

disposed of in such manner and on such terms and conditions as are 

necessary to move such product into buyers' hands; and all such intended sales or other dispositions of such products shall be reported 

immediately to the Managing Director; and 

Provided, further, that no provisions of this Supplementary Code 

relating to prices or terms of selling, shipping or marketing shall apply 

to or affect the sale of any product for direct shipment in export trade 

by any member of the Industry within the meaning of the term 

"export trade" as it is used in the Export Trade Act. B. The provisions of Article V, paragraphs B to G inclusive of 

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

extent as if here repeated and set forth in full. 

C. To quote or contract other than subject to the Standard Terms 

and Conditions of Sale shown in Schedule B hereof, which shall be set 

forth in full in a prominent place on all quotations and contracts. 

D. Making contracts of sale that permit the buyer to cancel and/or 

provide for a reduced price in event of a market decline, but which do 

not permit the seller to cancel and/or do not provide for an enhanced 

price, in the event of a market rise. 

E. Making contracts requiring delivery of specified quantity or 

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

the buyer to accept such quantity or quantities within the specified 

time. 

F. Making contracts of sale for products of the Industry at a 

specified price for periods in excess of three (3) months (all such 

contracts to expire not later than the last days of March, June, 

September or December) or quoting on or entering into such contracts 
11 

more than ixty (60) day prior t the first day f the quart r, r 

shipping pur uant to any such ontract more than fift n (15) days 

aft r th xpiration th r of, or as soon thoreaft r as ell l' an manufa ture and ship the sam , or making such contra ts ntaining an 

option of ext nsi nor r newal nth part of eith r bu r r ll r. 1 

G. Ac pting orders for d liveries extending b nd four (4) 

months from date of order. 1 

H. Ac epting any contra t for an unspecified quantity, unl s a 

minimum quantity p r release is specified, and unl s it i agre d 

that sp ifi ation p1ac d during the last third ther of hall not 

exceed the number of pi c s specified for shipment during the first 

two-third thereof. 

I. ancelling, in whole or in part, or permitting the an ellation, 

in whole or in part, of any contract of sale of any produ t ~x ept for 

ju tifiable cause or a fair con ideration. 

J. Consigning merchandise for any reason whatever xcept to a 

wholly owned or controlled subsidiary or except under ir umstances 

approved by the Supplementary Code Authority where peculiar 

circumstances of the Industry make the practice desirable. 

K. Renting or selling on deferred payments automatic or hand 

screw machines to operators for the purpose of avoiding or attempting 

to avoid any of the provisions of this Code. 

ARTICLE VI-MONOPOLIES 

No provision of this Supplementary Code shall be applied so as to 

permit monopolies or monopolistic practices, or to eliminate, oppress 

or discriminate against small enterprises. 

ARTICLE VII-MoDIFICATIONS 

SECTION 1. This Supplementary Code and all the proVIsions 

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

accordance with 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 said Act. 

SECTION 2. This Supplementary Code, except as to provisions 

required by the Act, may be modified or amended on the basis of 

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

Authority or other representative group within the Industry to the 

Administrator and such Notice and Hearing as he shall specify and 

to b come effective and a part of this Supplementary Code on approval 

by the President. 

ARTICLE VIII-PRICE INCREASES 

Whereas th policy of the Act to increase real purcha ing _power 

will be made more difficult of consummt\,tion if pric s of goods and 

scr ices increa e as rapidly as wages, it is recognized that price increa e except su h a may be required to meet individual costs should 

be d ln.yed, but when made, such increases should, so fn.r as possible, 

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

1 Deleted. See paragraph 2 (2) or order apiJrO ing this Code. 
12 

ARTICLE IX-EFFECTIVE DATE AND DuRATION 

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

A. M., Eastern Standard Time, on the tenth day after it is approved 

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

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

emergency recognized by Section 1 of Title I of theN ational Industrial 

Recovery Act, has ended. 

Approved Code No. 84. Supplement No. 18. 

Registry No. 1104-11. 
SCHEDULE A• 

E TIMATI G FORMULA 

E timate made b m mber of the Indu try regard! s of the estimating 

methods th y employ, hall re ult in an e timated cost that in no ca e shall be 

le s than a co t which ould be arriv d at by the use of the following e timating 

formula and no quotation or ale shall be mad& except ba ed upon a written estimate in such rea onable detail as to indicate clearly that Paragraph 11 of this 

Schedule has been complied with and such estimate for all products manufactured 

and sold is to be retained by the particular member of the Industry together with 

the price charged the cu tomer therefor and a record of the actual a erage net 

production per hour on the entire order: 

1. Material at Market Cost, the market to be determined by the published 

base price, plus delivery cost to estimator's plant, plus size, quantity and other 

applicable extras on date of quoting for quantity required for each item estimated, with crap credit allowance computed at 80% of published market for 

less than car load lots on said date. Market on material and scrap shall be determined by reference to the published market for said commodities as set forth 

in ''American Metal Market", or to other sources approved by the Supplementary 

Code Authority, or in the e ent of the discontinuance of said publication, as set 

forth in any other similar publication approved by the Supplementary Code 

Authority. Estimated quantity of material to be based on length of piece, plus 

cut-off, plus facing (if any), plus bar ends, plus waste ari ing from defective 

pieces. Waste arising from defective parts and from bar ends shall be figured at 

not le s than 5% of gross material. All weights for material to be figured from a 

recognized table giving weights per lineal foot. 

2. A charge for all necessary special tools including duplicates if required for 

the quantity (and a1 o special taps, dies or chasers) fixture and/or gauges, which 

shall consist of their direct prime cost (cost of material and direct labor) plus 

overhead which shall not be less than 75% of the said direct labor. If purchased 

outside the cost of such tool shall be included at cost to the estimator. 

3. A special charge for "set-up" which shall be ba ed upon the full time required for such ''set-up" at the current full hourly rate paid to the set-up man, 

plus the overhead hourly co t of the machine being set-up which is to be determined by the u e of the formula contained in Paragraph 6. 

4. Net production computed at not over 75% of geared production on tandard 

single spindle automatic machines; not over 70% of geared production on high 

speed single and on multiple spindle machines; and not over 0% of gross production on second operation and hand screw machines. 

5. Direct Labor 1achine Hour Cost, arrived at as follows: The Index Labor 

Rate us d in order to compute the direct labor as called for in thi para~rraph 

shall be the current average hourly rate paid by the estimator to a fir t-ela s 

operator for the type of machine involved when such operator is compen ated 

on an houri) ba i . Such first-class operator shall be defined a one who e daily 

dutie are to et-up or et-up and operat machine , without t chnical a i tance. 

To arrive at the av rage hourly rate paid to fir t-ela operators in ca e more 

than one i employed, add together the urn of the different current hourly rat s 

paid to fir t-ela op rators and divide by the number employed. To arrive at 

the Dir ct Labor 1Iachine Hour Cost, divide the Index Labor Rate of first-class 

op rator arrived at in accordance with the foregoing by the DiYisors for different 

types of rna hine in the table b low: 

When no first-class operator as defined is employed on an hourly ba i and 

machines are both t-up and perat d by a single individual who i paid on a 

pi e work ba i , th Ind x Labor Rate hall be et for th parti ular plant by 

the upplem ntary Code Authority with t he approval of he Admini trator, 

which Index Lab r ate shall not b fix d at a higher figur than that of the 

aY rage Ind x Labor at of oth r imilar plant in the Indu try similarly 

situated but camp nsating th ir empl y on an hourly ba is. 

' ee paragraJJb 2 (1) of order approving tbis ode. 
14 

DIVISORS 

Single Spindle Machines: 

Low Speed-Up to %"inclusive, use Divisor 4.00 

%" to %" " " " 3. 75 

over %" " " 3.25 

High Speed-Up to }1:6" inclusive, use Divisor 3.50 

}1:6" to %" " " " 3.25 

over %" 11 11 3.00 

Multiple Spindle Machines: 

Up to Ys" capacity inclusive, use Divisor 2.6 

1" to 1%" " " " " 2.4 

over I %" " " " 2.0 

To arrive at the Direct Labor 'Machine Hour Cost for second operation and 

hand screw machines where the machine requires an operator exclusively, use 

as the Index Labor Rate the average full pay per hour to operators of the second 

operation or hand screw machines to be figured. 

6. Overhead Ma-chine Hour Cost consisting of the product of the calculated 

Direct Labor Machine Hour Cost (as determined in Paragraph 5) and the factor 

"F" plus the overhead constant "A" both for the type of machine involved. 

(The factors and constants appear in the table following.) The particular automatic factors and constants for the ty_pes of machines involved, shall be applied 

to the Direct Labor Machine Hour Cost for the corresponding automatic machines. The particular second operation and hand screw machine factor for the 

types of machines involved shall be applied to the Direct Labor Machine Hour 

Cost for the corresponding second operation or hand screw machines. 

FACTORS 

Overhead 

Factor Constant 

Single Spindle Machines: 

Low Speed-Up to %" inclusive __________________ _ %" to %" " __________________ _ 

F A 

1. 075 $0. 337 

1. I5 . 37 

Over %" ------------------- 1. 225 . 40I 

High Speed-Up to }1:6" inclusive __________________ _ YtB" to %" " __________________ _ 1. I25 . 375 

1. 20 . 395 

Over%" ------------------- 1. 25 • 4I6 

Multiple Spindle Machines: 

Up to Ys" capacitY------------------------------

I111 to I %" " ------------------------------

1. 305 . 36I 

1. 33 . 40 

Over I %" ------------------------------ 1. 375 . 495 

FORMULA 

For Overhead Machine Hour Cost of automatic low and high speed single 

spindle machines and multiple spindle machines: 

Overhead Machine Hour Cost=DXF+A 

When D =Direct Labor Machine Hour Cost 

F= Overhead Factor for particular machine involved (see above 

table) 

A=Overhead Constant for particular machine involved (see above 

table) 

FACTORS 

Secondary Operation Machines and Hand Screw Machines either for Primary 

or Secondary Operations: Factor F 

Machines costing less than $750 ________________________________ 1. 00 

" " from $750. to $2,000 __________________________ 1. 25 11 11 over $2,000 __________________________________ 1. 50 

FORMULA 

For Overhead Machine Hour Cost of Secondary Operation and Hand Screw 

Machines: 

Overhead Machine Hour Cost=DXF 

When D =Direct Labor Machine Hour Cost 

F= Overhead Factor for particular machine involved (see above 

table) 
15 

Explanation: The Overhead Fa t rs for Machine Hour Co t as defined in 

Para ra.ph 6 include the minimum po ibl charge compri. ing proper o erh ad 

exp n , viz: 

a. Fix d harg , such a d preciati n on all plant quipment ba ed on rates 

alia\ d I income tax r ~ulati n , pr perty tax and/ r r ntal o t , , in urance. 

b. All th r Variabl act ry xpen e uch ~ U[Jpli , light, heat and pow r, 

fact r sup rvi i n and indir ct w rr ; repair and maint nanc , eith r in the 

f rm f wag r purcha or both, and all other item f expen e connected with 

r gular bulk packing and shipping, r ugh inspection, ordinary cleaning, oil separation, s ck handling and ther similar item . c. Admini trative and ffice E p nse, including executive and office workers' 

lari t g th r with charges for office supplies and all other items of expense 

rorerly char eable to this clas ification. 

7. A pecial Charge at a fair estimated cost for all operations imilar to the 

following: Any inspection other than rough inspection, plating, hardening, or any 

sp cial packing other than regular bulk packing and other similar operations. 

This special charge shall include a reasonable charge for overhead with respect 

thereto, since the factors given above in Paragraph 6 do not include overhead on 

such special operations. 

8. To determine the minimum cost below which no product may be quoted or 

sold, add the following: 

Material Cost as explained in Paragraph 1-

A Charge for special tools and set-up as explained in Paragraphs 2 and 3-

The Direct Labor Machine Hour Cost explained in Paragraph 5-

0verhead Machine Hour Cost explained in Paragraph 6-

And other special items as explained in Paragraph 7-

To the sum of these items, add an additional charge of 5% thereof on brass 

products and miscellaneous base metal products other than steel, and on steel 

products 7~% thereof to cover selling expense. 

To the cost so obtained must be added 1% to cover cash discount. 

The resulting figure will be the minimum cost, below which a product shall not 

be quoted or sold. 

FORMULA 

Total estimated cost exclusive of sales cost and} 

cash discount explained in Paragraph 8 and - M+T+S+XCD+A+ (FXD)) 

special estimates explained in Paragraph 7 

When M =Cost of Material as set forth in Paragraph 1 

T= Cost of Tools as set forth in Paragraph 2 

8= Cost of Set-up as set forth in Paragraph 3 

X= Number of Hours required for whole job 

D= Direct Labor Machine Hour Cost as set forth in Paragraph 5 

A= Overhead Constant Cost set forth in Paragraph 6 

P= Overhead Factor set forth in Paragraph 6 

9. In the case of articles made for stock and delivered in smaller quantities to 

customers, the minimum that can be quoted shall not be less than a cost estimated 

in accordance with this estimating formula for the exact quantity delivered or a 

cost estimated for the last quantity made for stock by the u e of said formula 

plus a rea onable charge for carrying stock and for ob ole cence. 

CAUTIO : Thee timating formula set forth in this code includes only costs in each 

in lance at the irreducible minimum and does not include any profit to the estimator 

or any interest on invested capital. The sum total of these irreducible minima will 

result in a cost below that of the average as indicated by the questionnaires sent out to 

the industry. All members of the industry are cautioned that use of this formula as 

a selling basis will not only not produce a profit but will produce a loss on the average, 

and that the formula is merely intended to establish an irreducible co t below which 

no one hould quote. 

10. The provi ions of thi estimating formula may be modifi d or amend 

on the a is of experience or changes in circum tances, by th upplementary 

ode Authority with the approval of the Admini trator, at any time, and in any 

event ix months aft r the e[ ctive date f the Code, upon the direction of the 

Administrator shall be revi wed and modified by him, after uch h aring as he 

shall pr . ribe if he shall d t rmine that uch modifi ation i n ce. arv. 

11. Me ber of the Indu try h U not timate therwi e tlun pur uant to 

a.n e timaie which includes c t of ateri· l at m rket, deter in d by p )li h 

b c price plus size and quantity extra. , on date of qu tin'5 f r qu'l.n ity requir d, 

with scrap credit allowanc co put d a.t eighty per cent ( 0%) of published 
16 

market for less than carload lots on said date, labor based on a net production 

to be figured at not over 75% of geared production on standard single spindle 

machines, not over 70% of geared production on high speed single spindle and 

on multiple spindle machines, and not over 80% of gross production on second 

operation and hand screw machines, a reasonable charge for overhead, depreciation, selling and administrative expense, and cash discount. Market on material 

and scrap shall be determined by reference to published rr..arket for said commodities as set forth in "American Metal Markets", or to other sources approved 

by the Supplementary Code Authority, or in the event of the discontinuance of 

said publication, as set forth in any other similar publication approved by the 

Supplementary Code Authority. 

12. Members of the Industry shall not make a repeat quotation or accept a 

repeat order at a price based upon an estimated speed setting that cannot be 

obtained on a machine in the particular member of the Industry's plant. 

13. Members of the Industry shall not estimate or quote on the basis of a 

speed setting which the particular member has reason to know cannot be obtained or on the basis of any other facts, figures or data which such member has 

reason to know are inaccurate. 

14. Members of the Industry shall not accept any order based upon an estimate or quotation made more than fifteen days prior to the date of the order if 

the market price of the material has gone up between date of estimate or quotation and date of order. 

ExAMPLE oF THE APPLICATION oF ScHEDULE "A" TO A STANDARD SINGLE 

SPINDLE %"-%" CAPACITY JoB OF 50,000 PIECES 

Hypothetical rates used 

$7.20 

. 36 

Paragraph 1.-M aterial: 

Material-Brass-60 Pounds per M at market of 12¢ base 

plus size, quantity, extras, and deh very ______________ _ Plus 5% for defective work and loss of bar ends _________ _ 

$7. 56 

30 pounds of scrap @ 80% of market which is 4¢ per lb __ _ -. 96 

Net Material Cost, perM _____________________ -------

Paragraphs 2 & 3-Set-up and Special Tool Charge: Set-up-5 hours@ 70¢ per hour ______________________ _ $3. 50 

Plus Machine Overhead: 

FX D+AX 5, or 1.15X .186+.37X 5= -------------- 2. 92 

$6. 42 

6.42-+-50= cost per M _________ -- _ -------------------- Special Tools and Fixtures, including cut-off tools, cams, 

form tools, special counter bores, special size taps, dies and chasers ____________________________________ -- $10. 50 

Tool Room Overhead 75%-------------------------- 7. 875 

$18. 375 

Cost Per 

M Pieces 

$6.60 

• 128 

$18.375-+-50 equals cost per M___________________________ . 368 

Paragraph 5-Direct Labor Machine Hour Cost: 

Geared Production 600 per hour @ 75% equals 450 per 

hour net production or 2.22 hours per 1000 pieces 

times the Direct Labor rate of .186 per hr.=_--------------- . 4129 

Paragraph 6-0verhead Machine Hour Cost: 

Formula . FXD+AX2.22, or 1.15X.186+.37X2.22=--------- 1. 296 

Paragraph 7-0ther Special Items: 

Other Items of Cost: 

Plating 3¢X30 "lbs. perM=----------------------------- . 90 

Total of paragraphs 1, (2 and 3), 5, 6, and 7----------------------- $9. 7049 

Plus selling expense, 5% of same_________________________________ . 4852 

$10. 1901 

Plus 1% cash discount------------------------------------------ . 1019 

Estimated minimum cost, per M--------------------------------- $10. 2920 
SCH DULE B 

STANDARD TERMS AND CONDITIONS OF SALEJ 

Terms.-Discount of one percent on the lOth of the month covering invoices 

between the 16th and the last day of the preceding month, both inclusive, and 

one percent on the 25th covering invoices between the 1st and the 15th, both 

inclusive, of the same month, or net 30 days from date of shipment. 

General.- tenographical and clerical errors subject to correction. Until order 

is accepted, prices are subject to change without notice. Unless otherwise specified, prices quoted are on product as dropped from the screw machine. All quotations, unless otherwise stated, are for immediate acceptance. All orders and 

contracts subject to approval, if accepted by a salesman or selling agent. 

Credit.-Accounts opened only with firms or individuals on approved credit. 

The seller reserves the privilege of declining to make deliveries except for cash 

whenever, for any reason, doubt as to the buyer's financial responsibility develops, 

and shall not, in such event, be liable for non-performance of contract in whole or 

in part. 

Cancellation.-Orders placed cannot be cancelled, nor can deferred deliveries 

of goods made up or in process be extended beyond the original delivery date 

specified, except with the seller's consent and upon terms which will indemnify 

him against all loss. 

Quotations.-It is understood that all estimates and/or quotations are subject 

to change without notice, until order is accepted. 

Quantities.-All quotations are based on customer accepting over-runs or underruns not exceeding ten percent of quantity ordered, to be paid for or allowed pro 

rata. 

Delivery.-Every effort will be made to fill orders within the time promi ed. 

Unless specifically stated to the contrary, quotations are made and ord-ers are 

accepted for delivery as fast as manufactured. 

Samples.-If requested, the seller will submit samples for approval when commencing operations upon any order, but does so with the understanding that his 

machines are to be run immediately after they are set correctly to customer's 

specifications, and he will assume responsibility for having the product in conformity with the original specifications during the period necessary in which to 

obtain customer's approval. Any change in specifications can be made only at 

customer's direction and expense. It is accordingly advisable to telephone or 

telegraph at once if changes are to be made. 

Claims.-If any material furnished by seller proves defective, or not as ordered, 

he must be notified within one week from receipt of shipment and shall have the 

option of inspecting the goods on buyer's premises or of taking back the goods 

and deciding whether he shall replace them or not. 

Tolerances.-All dimen ions must be limited by a specified tolerance. When 

not peci.fied by a customer, it is understood that commercial tolerances apply: 

viz., for decimal dimensions, plus or minus .002 for diameters, and plus or minus 

.010 for lengths and for fractional dimensions, plus or minus .005 on diameters, 

and plu or minus .010 on lengths. Samples to be considered as fractional dimension , unless othenvise specified. 

When buyer purcha e pursuant to hi own specifications, the seller will not be 

respon ible for the design and fitting of parts; the conforming of the seller's part 

to the specified tolerances is sufficient evidence as to the correctne s of the product, 

It is definit ly under tood that oncentricity is not a dimen ion, but is the 

relation that one dimension bear to any other and must be pecified eparately from 

dimen ion . '\' hen cone ntricit_ limitation i p cified, it i understood that 

it m ans the actual eccentricity allowable between two dimen ions and that the 

actual eccentricity is one-half what is r gister d by a dial r ading. When concentricity is not pecificd, the work will manufactured in the most economical 

manner without particular r gard to cone ntricity and quotations are made and 

orders arc accept d on this ba is. 

(17) 
UNIVER SITY OF FLORI D A 

11111111111111 111111111111111111111111111111111 11 11111111 111111 1 

18 3 1262 08855 6773 

Threads.-It is understood that customer shall specify the standard to which 

threads shall conform. The Seller will follow the commonly accepted standards, 

namely U.S. (American-National) form for threads when no other form of thread 

is specified. As there is no standard for V threads gages must be furnished by 

the customer should this form of thread be specified. 

External threads.-Unless .othenvise specified the seller will work to the limits 

specified by the National Screw Thread Commission's 1933 report for Class 2 

Free Fit. If the specified tolerance is not in agreement with the N.S.T.C. specification for classes 1, 2, or 3 fits, "go" and "not go" gages shall be furnished by 

the purchaser. 

Where threading to a shoulder is specified, it will be understood that the last 

full thread will not be cut closer to the shoulder than a distance of two threads 

and in the case of fine pitches, never closer than })6". 

Internal threads.-Unless dimensional limits for minor diameter of tapped hole 

are specified, threads will be tapped to % full depth in accordance with the 

regular practice recommended by the tap and die manufacturer and unless 

otherwise specified the seller will work to the limits specified by the National 

Screw Thread Commission's 1933 report for Class 2 Free Fit for tapped holes W' 

diameter or over and to Class 1 Loose Fit for tapped holes less than X" diameter. 

If specified tolerance is not in agreement with the N.S.T .C. specifications ior 

Classes 1 and 2 for holes less than X" diameter and for Classes 1, 2 and 3 for holes 

X" diameter and over, "go" and "not go" gages shall be furnished by the 

purchaser. 

Blind tapped holes will not have a full thread closer than five threads from the 

bottom and in the case of fine pitches never closer than %2". 

Gages.-Gages are not included in estimated price unless especially stated. 

Where tolerances are closer than commercial limits defined under "Tolerances", 

or when dimensions cannot be readily gaged with standard gages or micrometers, 

customers may furnish manufacturing gages or such gages may be supplied by 

seller at cost. 

Inspection.-Quotations do not include 100 per cent inspection unless especially 

stipulated. Although it is the intention to charge for only good work without a 

100 per cent inspection, delivery in this way cannot be guaranteed. It is there- fore understood that such individual inspection will be made by the customer at 

his expense and that only parts which have been proved defective by customer's 

individual inspection will be returned with a claim for credit or replacement at 

seller's option. When the manufacturing tolerances are closer than commercial 

limits defined under tolerances the dimensions of the inspection gages to be used 

by the purchaser shall be furnished the manufacturer. In the case of threads 

the inspection gages shall not be outside the limits specified by the N.S.T.C. for 

inspection gages. · Dies, tools, etc.-Charges for dies, tools and/or gages do not convey ownership 

or the right to remove them from seller's factory, but buyer may purchase dies, 

tools and/or gages. 

Responsibilily.-Seller is not responsible for drawings, samples, models, or 

gages uncalled for within thirty days after the execution of any order or quotation. 

Shipments.-In ordering, the customer should state explicitly the method of 

shipment preferred. In the absence of shipping directions the seller will use discretion forwarding by express or parcel post when packages are small and there- fore liable to be lost in transit by freight. Parcel Post shipments will be insured 

at customer's expense unless other"'ise specified. The seller assumes no responsibility for placing valuations upon shipment unless specifically requested to do 

so by the customer. 

Customer's material.-Quotations covering the machining of buyer's material 

are subject to change if material furnished will not machine at speed and feed 

estimated. When the material is furnished by the buyer, the seller cannot guarantee to furnish more than ninety percent of the amount of the order. When 

strictly special material is used, this may vary. 

Patents.-It is not the intention of the seller to manufacture any product which 

is an infringement of a patented article and it is understood that the seller be 

notified if the parts on which he is quoting are infringements of letters patent. If 

any such infringement exists, the seller reserves the right to "'ithdraw the quotation. 

0