Appro ed Code No. 84-Supplement No. 49 Regi try No. 1104-03 

NATIONAL RECOVERY ADMIN TRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

POR THE 

SOCKET SCREW PRODUCTS 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON SEPTEMBER 1, 1934 

WI DO OUR PART 

A• "----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent ot Documents, WashJniton, D.C. - - - - - - - - Price 5 centa 
This publication is for sale by the Superintendent of Documents, Government 

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmi11gbam, 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. 

Cle,·eland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Buikling. 

Detroit, Mich.: 801 First National Bank Building. 

Housto11, Tex.: Chamber of Commerce Building. 

Indiana,polis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Buildini. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 F ederal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minueapolis, 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.: Cl1aruber 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. 49 

SUPPLEI\tiENTARY CODE OF FAIR COl\1PETITION 

FOR THE 

SOCKET SCREW PRODUCTS MANUFACTURING 

INDUSTRY 

As Approved on September 1, 1934 

OR ER 

APPR n -o St"'PPLEl\IENTARY ODE F FAIR CoMPETITION FOR THE 

o KET nEw PR DUCTS l\1ANUF A TURING I D TRY 

A DIVI I N OF THE FABRI ATED METAL PROD T )fA)rCFA TUllL-G AND 

~fETAL FLXI 'HI G AND 1\IETAL OATING I .1: D "'TRY 

An application having been duly made fur uant to and in full 

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

Recovery Act, approved June 16, 1933, and in accordance with the 

provi ions of ection 1 of Article VI of the Basic ode for the 

Fabricated Metal Products Manufacturing and :Metal Finishina and 

1\Ietal oating Industry, approved November 2, 1933, for approval 

of a Supplmnentary Code of Fair Competition for the Socket crew 

Products Manufacturing Industry, and hearing having been duly 

held thereon; and the annexed report on said Supplement:try Code, 

containing findings with respect thereto, having been made and directe to the Pr i lent : 

N \V THEREFORE, on behalf of the President of the United 

States, I, Hugh . Johnson, Adrnini trator for Indu trial RecoYery, pursuant to authority est-ad in me by Executi\e Orders of the 

Pr ident, including Executive Order No. 65-±3-A, dated Dec mber 

30 1933, and otherwise; do hereby incorporate by referen aid 

annexe report and do find that aid upplementary o<.l omIlies in all respects with the pertinent provi i n an l will pr mote 

the policy and urpo s of said Title of aid Act· and do h reby 

order that aid upplementary od of Fair .omp tition be and it is 

h reby approve , on condition that the k t S r w Product Bur au amend its rticl f Organization to the ati facti n of the 

A lm.ini tration within thirty (30) days after the fi tive late of 

th.i od . 

H GII . J HN. N 

Admini trato1· for I ndustrial Reco ery. 

ppr val r romm nrl cl : 

BAnT "'' . I c1m Y 

Di ·i ion ldminlstra 01·. 

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3 74°----11 1 4 3~ (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White Howse. 

Srn: This is a report on the Supplementary Code of Fair Competition for the Socket Screw Products Industry, a division of the 

Fabricated Metal Products ~1anufacturing and :Metal Finishing 

and Metal Coating Industry, the hearing having be~m conducted 

thereon in Washington, D.C., January 19, 1934, in accordance with 

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

GENERAL STATEMENT 

The Socket Screw Products Industry, being truly representative 

of this division of the Fabricated :Metal Products :Manufacturing and 

Metal Finishing and Metal Coating Industry, has elected to avail 

itself of the option of ubmitting a Supplementary Code of Fair 

Competition, as provided for in Section 1 of Article VI of the Basic 

Code, for the Fabricated Metal Products M:anufacturing and Metal 

Finishing and Meta1 Coating Industry approved by you on the 

second day of November, 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Supplementary Code. 

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

Article III. This Indu. try is a division of the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

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

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

Code. 

Article IV establishes a Supplementary Code Authority consisting of five (5) :nembers to be elected at a meeting called by the 

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

vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. 

Article V sets forth the open price provisions. 

Article VI sets forth the c-tandards of fair competition with reference to pricing practices. 

Article VII sets forth the unfair trade practices of this Supplementary Code which have been espe"ially designed to offs"t unfair 

competition in this division of the Industry. 

Article VIII provides against monopolies and monopolistic practices. 

(2) 
3 

Articl IX ntain the man lat ry prov1 1on containe in ecti n 1 f the A t an l al o pr \ide f r th ubmissi n f prop ed am ndm n to th upplementary ode. 

Arti 1 X r aniz s that rri in r a e oo linut d to actual additj nul in in the ell r co t . Articl t, te th eft' ctive date f this uppl mentary ode. 

FINDI G 

The Actina Deputy Admini trator in hi final report to me on said 

upplem ntary C< de having found as herein set forth and on the 

ba i " f all the proceedinas 1n this matter: 

I find that: 

(a) ail Qupplementary Code is well de igned to promote the 

policies and purpo e of Title I of the National Industrial RecO\'ery 

A t including removal of obstructions to the free flow of inter tate 

and foreign commerce which tend to dimini h the amount thereof 

and will provide for the general \\elfare by promoting the organization of industry fo r the purposes of cooperative action among the 

trade groups by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and upervision, 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 bet mporarily required), by increasina the consumption of industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

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

(c) The Supplementary Code as approved complies in all re pects 

with the pertinent provi ions of said Title of said Act, including 

withont limitation Subsection (a) of Section 3, Subsection (a) o£ 

Section '7, and ub ection (b) of Section 10 thereof; and that the 

applicant bureau is an industrial association truly representative of 

the afore aid Industry; and that said association 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 upplementary Code is not de igned to and will not 

elimmate or oppress mall enterprises and will not operate to discriminate aaain t them. 

(f) Tho e ngaaed in other teps of the e onomic process have 

not b n deprived of the right to be heard prior to appro' al of aid 

up 1 mentary Code. 

For these reas ns, therefore, I have approved thi Supplementary 

Co . 

R tfnlly, 

l-1 OH S. J HNSON, 

.L1. dminutrator. 

EPTElii3ER 1, 1934. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE SOCKET SCREW PRODUCTS 1\UNUF ACTURING 

INDUSTRY 

A DIVISION OF THE F .ABRIC.ATED METAL PRODUCTS MANUFACTURI~G AND 

METAL FINISHING AND METAL CoATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Socket Screw Products 

Manufacturing Industry. Pursuant to Article VT of the Basic Code 

of Fair Competition for the Fabricated Metal Products Manufacturing and l\1etal Finishing and Metal Coating Industry, approved 

by the President of the United States 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 respectiveiy, the President of the United 

States, Title I of the National Industrial Recovery Act, and the 

Administrator for Industrial Recovery. 

SECTION 2. The term "Industry" and/or "Socket Screw Products 

Industry " means and includes the business of manufacturing for 

sale Socket Screw Products. 

SECTION 3. The term" Socket Screw Products>' is defined as Screw 

Products of a type well known to the trade, each item of which has 

a socket for the reception of a tightening instrument or wrench made 

to fit said socket; and also including the tightening instrument, or 

wrench, itself. This term is meant to include the classifications generally known to the trade as Hollow or Safety Set Screws and Socket 

Head Cap Screws and Wrenches therefor as now proposed by the 

American Standards Association Bulletin Bl8i-, and also to include 

Hollow Pipe Plugs and Socketed Stripper Screws which are sometimes termed Stripper Bolts or Socket Head Stripper Bolts or 

Stripper Plate Screws, and also modifications of any of the above 

types for special purposes. 

SECTION 4. The term "Member of the Industry" as used herein 

includes., but without limitation, any individual, partnership, association, corporation or other form of enterprise engaged in the Industry either as an employer or on his or its own behalf. 

SECTION 5. The term " product " means and includes Socket Screw 

Products, as the term is defined herein. 

(4) 
5 

an ' ne 

E r N 9. The term 'Bureau" m-e ans ocket Scr w Pro lu ts 

Bur au or it succe sor. 

E TION J.O. The term " Supplem nt:uy Code Authority", a used 

her in, is lefined to mean the agency which is to admini t r this 

u~plementary Code as hereinafter provided. 

SE TION 11. The term ' Executive Committee" m an Executive 

Committee of the Socket Screw Pro lucts Bureau. 

ECTION 12. The t rm "Impartial Agency" means such impartial 

and confidential agency as the Supplementary Code Authority may 

de ignate. 

ARTICLE III-EMPLOYMENT PROVISIONS 

Thi Indu try is a division of the Fabricated :Metal Pro lucts ~fan · 

ufacturina- and M tal Fini hing and l\1etal Coatinfa- Indu try and the 

wage, hour and labor provi ion in Article III o its Ba ic ocl as 

approved by the Pre ident November 2, 1933, including Se tlon 1 

of aid Article III by which the provisions of Subsection ( 1), (2) 

and ( 3) of Section 7 (a) of Title I of the Act are made conditions 

of this Code, are pecifically incorporated her in and made a part 

h r of as the wage hour and labor provisions of this Supplementary 

Code. 

AnTI LE IV--OnaANIZATI N, AoMnn TR TI N AND DUTIE" 1 

60) day · fol· 

1 'ec paragraph 2 of ord •r approving this ode. 
6 

of the Industry to be held at the time and place of the annual meeting of the Bureau, to serve until their successors are elected. Notice 

of each election shall be sent in the manner above provided. The 

membership of the Supplementary Code Authority shall be made up 

as follows: 

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

elected by a m.ajority vote of the members of the Bureau present 

in person or represented by proxy or by letter ballot, each member 

of the Bureau to have one vote; 

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

Bureau elected by a majority of_ all votes cast by the members of 

the I ndustry who are non-members of the Bureau, present in person 

or represented by proxy or by letter ballot, each such member of 

the Industry to have one vote; 

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

Authority shall be filled by majority vote of the remaining members 

of the Supplementary Code Authority providing such vacancy is 

filled by a member of the Industry drawn from the same group as 

was represented by the vacating member. 

(d) In addition to the above, the Administrator may appoint on~ ( 1) representative without vote and without expense to the 

Industry, to serve with said Supplementary Code Authority in the 

Administration of this Supplementary Code. Said representative 

shall be given proper and r easonable notice of all meetings of the 

Supplementary 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, Regulations and any 

amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem neces ary to effectuate the purposes of the Act. 

SE.cTION 3. In order that the Supplementary Code Authority shall, 

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

re pects comply with the provisions o:f the Act, the Administrator 

may prescribe such H ea rings as he may deem proper; and, thereafter, if he shall find that the Supplementary Code Authority is not 

truly representative or does not in other respects comply with the 

provisions of the Act, may remove any member thereof and may 

require an appropriate modification or modifications in the method 

of selection of members of the Supplementary Code Authority. 

SECTION 4. The Supplementary Code Authority shall obtain from ember~ of the Industry such information and reports as are required for the administration of the Supplementary Code. In nddition to information required to be submitted to the Supplementary 

Code Authority, members of the industry subject to this Supplementary Code shall furnish such statistical information as the Administrator may deem necessary :for the purposes recited in Section 3 (a) 

of the Act to such Federal and State Agencies as he may designate; 

provided that nothing in this Supplementary Code shall relieve any 

member of the Industry of any existing obligations to furnish reports 

to any Government Agency. No individual report shall be disclosed 
7 

to any oth r m mbcr f the In u try or any th r 12arty x pt to 

uch th r v rnm ntal Acr n ie a may b hr efed by the 

A mini trator. r .- . Th uprl m ntar od Auth rity a such agency 

from time to tim furnish to th a ic de uth rity, 

d icrnn in aid Ba ic l such information a. ma be require 

to b furni h d und r the t rm of aid I3a. i od . E TI . An • or all informati n furni hed to the Suppl mentary ·Cod Authority by any member of the Indu tr. shall b , I ur uant to 

th provi i n f thi upplementary Cod , ubject to v rification by 

an xamination of th pertinent or neces ary hook accounts and 

record of uch member by an imr artial aacncy agr d upon by the 

Supplem ntary Cod Authority and the memb r of th Indu tr. in 

que ion or, failing uch ac~T emen"", by an impartial agent desi5 -

nated by the Administrator. Su h xamination hall b made only 

to the extent permitted by the Act and such rules and r gulation as 

may be pre cribed by the Administrator. The co t of each such 

examination shall be borne by the Supplementary od Authority. 

E Tio ... T 7. It being found nece ar in order to support th Admini tration of this Supplementary Code and to maintajn the tan iar f fair ompetition establjshed hereunder and to effectuate the 

policy of the Act, the Supplementary Code Authority i authorized: 

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

proper for the foregoing purpo es and to meet such obligation out 

of fund which may be raised as hereinafter provided and whi h 

shall be held in trust for the purposes of the Supplementary ode. 

(b) To submit to the Administrator for his approval, subject to 

sucl1 notice and opportunity to be heard as he may deem nece ary, 

(1) an itemized bu get f its estimated expenses for the foregoing 

purpose· and (2) an equitable basis upon which the funds n es ary 

to support uch budget shall b-:> contributed by all members of the 

In lu try. 

(c) After such budget and basi. of contribution have l e n appr ved b the Admini trator, to d termine and se ure equitable 

contribution a. above set forth by all m mber of th In lu try, 

an l to that nd, if ne e ary to in titut legal proc ding th refor 

in i wn name. Each men b"r of the In 1u try shall pay hi or its 

equitabl c ntribution to the xpcn es of the maint nance o± the 

Supplem ntary Code Authority a hereinabov pro i eel an l ubje t to rul an regulations pertaining th reto i ued by the P .. dministra r. 

nly m m cr of the Inclu try complying with th uppl m ntary 

Code and contributing to th xpen of its admini tration a h reinabo e rovid d unl duly xempt from making suc:h n ribu i n, hall e enti l t a.rticipatc in he selection of the members 

of the uppl m ntar o l Auth ri or to r iY the ben fit of 

any of it oluntary a ti iti r to mn.k u of • ny embl m or 

insignia f th ation 1 l v •r Admini tra i n. 

'h up:pl m ntary 0l Auth rity shall n ith r in ur n r pay 

any blicratl n b tantiall in x f tl amount th rcof as stimat l in it avprOY d Ufl t and shall in DO V n X ed th tal 

am unt c nta1ned in the a1 pr d budget, e.- · pt upon ap roval of 
8 

the Administrator; and no subsequent budget shall contain any 

deficiency item for expenditures in excess of prior budget estimates 

except those which the Administr ator slul.ll have so approved. SECTION 8. Nothing contained in this Supplementary Code shall 

be deemed to constitute the members of the Supplementary Code 

Authority partners for any purpose whatsoever. Nor shall any 

member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent or 

employee of the Supplementary Code Authority. Nor shall any 

mem.ber of the Supplementary Code Authority exercising reasonable diligence in the conduct of his duties hereunder, be liable to 

anyone for any action or omission to act under this Supplementary 

Code, except for his own wilful malfeasance or non-feasance. 

SEcTION 9. If any member of the Industry as defined herein is a 

member of any other I ndustry, the provisions of this Supplementary 

Code shall apply to and effect only that part of his business which 

is included in the Industry. 

SEcTION 10. T he Supplementary Code Authority shall without 

any limitations on the foregoing have the following further general 

po·wers and duties subj ect to such rules and regulations as the 

Administrator may prescribe: 

(a) To insure the execution of the provisions of this Supplementary Code and provide for the compliance of the Industry with 

the provisions of the Act; 

(b) To adopt by-laws and rules and regulations for its procedure 

and for the administration of the Supplementary Code; 

(c) To use such trade associations and other agencies as it deems 

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

herein, provided that nothing herein shall relieve the Supplementary 

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

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

(d) To make r ecommendations to the Administrator for the coordination of the administration of this Supplementary Code with 

such other codes, if any, .as may be related to the Industry; 

(e) T o cooperate with the Admini·3trator in regulating the use of 

any N.R.A. insignia solely by those members of the Industry who 

are complying with tllis Supplementary Code; · 

(f) To recommend to the Ailininistrator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the Industry in their relations with each 

other or wit~ other industries; measures for industrial planning, 

and stabilization of employment; and including modifications of 

this Code which shall become effective as part hereof upon approval 

by the Admini.;:;trator after such notice and hearing as he may 

specify. SEcTio~ 11. If the Administrator believes that any action of the 

Supplementary Code. Authority cr any agency thereof is unfair or 

unjust or contrary to the public interest, the Administrator 1nay 

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 complained of may be taken if approved by the Administrator but shall 
9 

not be tak n if di approv d by the Arunini trator within thirty days 

of n ti t him of int nti n to proceed with such action. 

ECTI N 12. E r cmrloyer hall provide for the sa£ t. and 

h alth of hi emr lo e during the hours and at the place of the·r 

e.mpl yment. tandards for safety and health shall be submitted 

by the uppl mentar} Co e Authority to the Admini trat r within 

three (3) months aft r th effective date of J.his Suppl mentary 

Code. 

.l~TICLE V-OPEN Pm E 

E TION 1. Each member of the Indu try shall file with a confidential and di interested agent of the Supplem ntary ode Authority or, if none, then w1th such an agent de ignated by the 

Administrator, identified lists of any or all of his pnces di counts, 

rebates, allowances and all other terms or conditions of sale hereinafter in this article referred to as "price terms", which li ts hall 

completely and accurately conform to and represent the individual 

pricrng practices of said member. Such lists shall contain the price 

terms for any or all such standard products of the Indu try as are 

sold or offered for sale by said member and for such non-standard 

products of said member as shall be designated by the Supple.mentary 

Code Authority. Said price terms shall in the first in tance be filed 

within ten (10) days after the date of approval of this provi ion 

of such price terms. Price terms and revised price terms shall become effective immediately upon receipt thereof by said agent. 

Immediately upon r eceipt thereof, said agent shall by telegraph or 

other equally prompt means notify said member of the time of uch 

receipt. Such lists and revisions, together with the effective time 

thereof shall upon receipt be immediately and simultaneously li -

tributed to all members of the Industry and to all of their customers 

who have applied therefor and have Qffered to defray the co t actually incurred by the Supplementary Code Authority in the preparation and di tribution thereof and be a vail able for inspection by any 

of their customers at the office of such agent. Said lists or revi i ns 

or any part th&eof shall not be made available to any per on until 

released to all members of the Industry and their customers, as afor -

said ; provided, that prices filed in the first instance shall not be 

relea ed until the expiration of the aforesaid ten (10) day p riod 

after the approval of this Supplementary Code. The Suppl m ntary 

Code Authority shall maintain a permanent file of all price terms 

fil d a her in provi e , and shall not destroy any part of u h 

r e ords exc pt upon writt n con ent of the Admin1 trator. Up n 

r que t the uppl mentary Code Authority shall furni h to the 

Admini rator or any duly designated agent of the Administrator 

co i of any u h li ·ts or revisions of price terms. 

'E TI N 2. Wben any member of the Industry has fil d any 

revi i n uch m .m r hall not file a higher price within forty-eiCYht 

(4 ) hour . 

E 'l'I N 3. o m mber of the Indu try shall sell or o1I r to ell 

any pr du ts f th Indu ry, f r which price t rms hav b n 

filed pur uant t the pro i ions of this article, except in accordance 

with such price terms. 
10 

SECTION 4. No member of the Industry shall enter into any agree-j 

ment, understanding, combination or conspiracy to fix or maintain 

price terms, nor cause or attempt to cause any member of the Industry 

to change his price terms by the use of intimidation, coercion, or any 

other influence inconsistent with the maintenance of the free and 

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

SECTION 5. No proYision of this Supplementary Code relating 

to prices or terms of selling, shipping7 or marketing shall apply 

to export trade or sales or shipments for · export trade within the 

meaning of the term " export trade " as it is used in the Export] 

Trade Act, adopted April 10, 1918. 

ARTICLE VI-CosTs AND PmcE CuTTING 

SECTION 1. The standards of fair competition :for the Industry with1 

reference to pricing practices are declar~d to be as follows : 1 

(a) Wilfully destructiYe price cutting is an unfair method of 

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

any other Industry or the customers o:f either may at any time complain to the Supplementary Code Authority that any filed price 

constitutes unfair competition as destructive price cutting, imperil-. 

ing small enterprise or tending toward monopoly or the impairment 

of Supplementary Code wages and working conditions. The Sup-' 

plementary Code Authority shall within five ( 5) days afford a~ 

opportunity to the member filing the price to answer such complain~ 

and shall within f01uieen (14) days make a ruling or adjustment 

thereon. If such ruling is not concurred in by either party to ths' 

complaint, all papers shall be referred to the Research and Planning 

Division of N.R.A. which shall render a report and recommenda-i 

tion thereon to the Administrator. I 

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

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

sound cost estio:nating methods should be used and that consideration 

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

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

the stated minimun1 price of such product, in violation of Section 2 

hereof, is forbidden. ~ 

SECTION 2. E~rq nc1J Provisions.-(a) If the Administrator, 

after investigation shall at any time find both ( 1) that a.n emergency 

has arisen within the Industry adversely affecting small enterprises 

or wages or labor conditions, or tending toward monopoly or other 

acute conditions which tend to defeat the purposes of the Act; and 

(2) that the determination of the stated minimum price for a speci- fied product within the Industry for a limited period is necessary to 

mitigate the conditions constituting such emergency and to effectuate 

the purposes of the Act, the Supplementary Code Authority may 

cause an impartial agency to investigate costs and to recommend to 

the Administrator a determination of the stated minimum price of 

the product affected by the emergency and thereupon the Administrator may proceed to determine such stated minimum prica. (b) When the Administrator shall have det ermined such stated 

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

price shall be reasonably calculated to mitigate the conditions of 

' 
11 

such cmergen . an l to eff tuat th purpo e f theN ati nal In lu - trial e Y r A t h hall publish uch pri e. Th reafter during 

su h ta d perio 1 no m mber of the Indu try hall sell such specified product , at a ne r ealized price below said stated minin1um price 

and ::m uch ale l all be de m d destru ti ve price cutting. From 

time t tim the Supplementary Code \_uthority may r commend 

r evi w or recon ·deration or the Admini trator may cau e any 

determinations hereunder to be. reviewed or reconsidered and 

appropriate action taken. 

ARTICLE VII-UNFAIR TRADE P RACTICES 

For all purposes of this Supplementary Code the following describe l Act hall CJnstitute unfair practices. Such unfair practices 

shall be deemed to be unfair methods of competition in commerce 

within the meaning of the Federal Trade Commission Act as amended and any member of the Industry who shall directly or indir ctly 

through any officer employee, agent or representative knowingly 

use or emplo any of uch unfair practices shall be deemed guilty of 

a violation of this Supplementary Code. 

r . The provi ions of Article V, paragraphs B to G, inclusiYe, of 

the Ba ic Code are a part of this Supplementary Code to the same 

extent as if here repeated and set forth at length. 

B. Using or substituting any material superior in quality to that 

specified by the purchaser of any product, for the purpose of influ- encing purchase or future purchase. 

C. Cancelling in -whole or in part, or permitting the cancellation 

in whole or in part, of any contract of sale of any product, except 

for a fair con ideration. D. Inducing or attempting to induce the breach of any provision 

of a contract to which a m mber of the Industry is a party. This 

clau ·e hall not be construed to apply to employment contract . 

E. Off ring or giving to any purchaser of any product any guaranty or protection in any form against decline after the elate of ship- ment in the market price of such product. 

F. olicitina by any member of the Industry the pooling of orders 

from e eral buyers in a manner to give the buyer advantage of 

more favorable price or term than tho e to which the buyers would 

be entitled individually; provided, however, that pooled buying is 

not prohibite.d. where the s 11 r ma have a measurable compensating 

advantage. 

G. Con ignina merchandi. e for any reason whatsoever ex ept to 

a wholly "\Y.aed or contr ll d sub"idiary or to a direct r pre ntativ having ~ stock ubject to control of the manufacturer for pricing in-voi ina and tern . or exc pt un 1 r cir urn an e to b defined b the uppl mcntary de Authority and appr e l b. the 

Acln1ini trator where p uliar cir um tance in th Indu tr r quire 

the pra ti e. H. :M· kina contract r quirin · l liYery of p cified quantity or 

quun iti in p cified tin if d mande l b r buyer but not r uiring 

the buyer to accept uch quantit or quantities within the s ified 

tim . I. faking contra t at a p ifi l rice for an un pecifie l quantity for delivery a deman l d b the buyer during the period unless 
12 

the contract is ior a fixed percentage of the total consumption requirements of the purchaser of the particular product; or making 

any such unspecified quantjty contract above described except on a 

standard form or forms approved by the Supplementary Code Authority and th.e Administrator; or failing to file with the Secretary 

a copy of each and every different form o:f contract entered into by 

a member of the Industry within five days after entering into a contract in such form. 

J. 1iaking contracts for periods in excess of three months (all 

contracts to expire not later than the last days of ~!larch, June, 

September or December) or quoting on or making any quarterly contract more than thirty (30) days prior to the first day of the calendar quarter covered by the contract, or shipping pursuant to anl 

contract more than fifteen (15) days after the expiration thereo , or as soon thereafter as seller can manufacture and ship the same, 

or making contracts containing an option of extension or removal on 

the part of either buyer or seller; provided, however, that the foregoing provisions of this paragraph J shall not apply to a bona fide 

order for a specified quantity of specified types, sizes and kinds of 

products of the Industry for delivery at specified dates not extending 

beyond four months from receipt of order, at a specified price. 

l{. Offering any article by price or otherwise in a manner to influence the purchase of another article. 

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

shall give any or all of his corrunission to any purchaser without 

the knowledge of his employer. 

M. Making or continuing any arrangement with a jobber, dealer 

or syndicate buyer whereby such jobber, dealer or syndicate buyer 

acts both as agent and as jobber, dealer or syndicate buyer in a 

specific transaction and thereby receives both the jobber's, dealer's 

or syndicate buyer's djscount and the agent's commission on the same 

transaction, or entering into any kind of any exclusive territory 

arrangement with a jobber, dealer, or syndicate buyer, provided, 

that this clause shall not apply in any way to any selling arrange· 

ments wherein a national distributor contracts to sell the entire 

output of a particular manufacturer as such manufacturer's agent. 

ARTICLE VIII-MoNOPOLIES 

No provision of this Supplementary Code shall be so applied as 

to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. 

ARTICLE IX-MODIFICATIONS 

SECTION 1. This Supplementary Code and all the proVIsiOns 

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

accordance with provis:ons of Subsection (b) of Section 10 of the 

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

license, rule or regulation issued under said Act. 

SECTION 2. This Supplementary Code, except as to provisions renuired by the Act, may be modified on the basis of experience or 

cl;'anges in circumstances, such modifications to be based upon ap-
13 

plication to the Admini trator and such Notice and Hearin~ as he 

shall peci-~y and to become effective on approval by the President. 

ARTICLE X-PRICE lNCRF..ASES 

Whereas the policy of the Act to increase real J?Urchasing power 

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

service incr a e as rapidly as wages1 it is recognized that price 

increa es except such as may be reqmred to meet individual costs 

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

possible, be limit;d to actual additional increases in the seller's costs. 

ARTICLE XI-EFFECTIVE DATE 

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

A.M. Eastern Standard Time of the tenth day after it is approved by 

the President. 

Approved Code No. 84-Supplement No. 49. 

Registry 1104--03. 

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UN IVERSITY OF FLORIDA 

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