Approved Code No. 4-Supplement No. 1 Registry No. 1328-16 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

REFRIGERATION INDUSTRY 

(A Division of the Electrical Manufacturing Industry) 

AS APPROVED ON JUNE 9, 1934 

WE DO OUR PART 

UNIV. OF FL U , 

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-----------· U ...... DEPOS1TORY 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washin2ton, D.C. • • - • • • - - Price 5 cents 

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This publi ation is for sale by the Superintencl en t of Docnmcnt8, Government 

Printing Office, Wa shington, D.C., and by district ffices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atla nta, Ga . : 504 P ost Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Bo ton, Mass. : 1801 Cu tomhouse. 

Buffa lo, N .Y.: Chamb r of Commerce Buildino-. harleston, S.C.: Clwmber of Commerce Building. 

Chicago, Ill.: Suite 1706, _01 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Comm rce Building. 

Detro~t. Mich.: 801 First National Bank Building. 

H ouston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Buildincr. Jacksonvill e, Fla. : Chamber of Commerce Building. 

Kansas City, l\Io.: 1028 Baltimore AYenue. 

Los Angeles, Calif. : 1163 South Broadway. Louisville, Ky. : 408 F ederal Building. 

Memphis, Tenn . : 22B Federal Building. l\linneapolis, l\Iinn. : 213 F ederal Builcling. 

New Orleans, La. : R oom 225-A, Ou tomb use. 

New York, N.Y.: 734 Customhou e. 

Norfolk, Va.: 406 Ea t Plume Street. 

Philaclelphia, Pa.: 422 Commercial Tru t Buil ling. 

Pitt burgh, Pa. : hamber of Commer ·e Building. P ortland, Oreg. : 215 ew Po t Office Building. 

St. Loni , Io.: 506 Olive Street. 

San Fran i co, Calif. : 310 u , tomhou e. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 4-Supplement No. 1 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

REFRIGERATION INDUSTRY 

As Approved on June 9, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE REFRIGERATION 

INDUSTRY 

A DIVISION OF THE ELECTRICAL MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Refrigeration Subdivision 

to the Code of Fair Competition for the Electrical Manufacturing 

Industry, and hearings having been duly held thereon and the annexed report on said Supplemental 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 vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Supplemental 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 Supplemental Code of Fair Competition be and it is hereby 

approved; provided, however, that the provisions of Article III, 

Section (f), are stayed pending my further order. 

HUGH s. JOHNSON, 

Administrator for Industrial Reco1Jery. 

Approval recommended: 

BARTON vv. MURRAY, 

Acting Divwion Adminutrator. 

WASHINGTON, D.C., 

June 9, 1.934. 

66336°-657-78-34 (1) 
REPORT TO THE PRESIDENT 

The PnESIDENT, 

The White House. 

Srn: This i a report on the Supplemental Code of Fair Competi. 

tion for the Refrigeration Subdivision of the Electrical Manufacturing Industry, Public H earing having been conducted thereon in 

,Vashington, D.C., January 29, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. The 

Code which is attached, was presented by duly qualified and authorized representatives of the Industry, claiming to represent eighty 

(80) per ent of the aggregate production of the I ndutsry. 

GENERAL STATEMENT 

The National Electrical 1\.1:anufacturers Association being truly 

r epresentative of this Subdivision of the Electrical Indu try, has 

submitted a Supplemental Code of Fair Competition to the Basic 

Code for the Electrical :Manufacturing Industry, approved by you 

August 4, 1933. Every person who filed a request for an appearance at the Public Hearing was heard in accordance with regulation of the National Recovery Administration. The Refrigeration 

Subdivi ·ion of the Electrical Manufacturing Indu try i defined to 

mean the manufacture for sale of E lectrical Hou ehold Refrio--rators 

and such Commercial Electrical Refrigeration as i not within the 

control of other duly approved codes. 

INDUSTRY 

Th Refrigeration Division of the National Ele tri al 

fa turer A sociation wa established in 1929 sue ling an 

a. o iation which wa establi heel in 1926. Acor lin · t ati ti s 

furni heel by members of th Refrigeration Divi i n th r are 

approximately ev nty-four (74) con ern with an a · reo-a 111-

Ye te 1 apital of $150,000,000, and a r port d a r a pr lu tion 

f or th fir t ten months of 1933 of 1 010 24 unit . t I r ent the 

Indu 'try employ approximately 40,000 p r on . 

PROYI I S OF TUE DE 

( ) 
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FINDINGS 

The 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 designed to _promote the policies 

and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and 

foreign commerce which tend to diminish the amount thereof, and 

will provide for the general welfare by promoting the organization of 

trade for the purpose of cooperative action among trade groups, . 

by inducing and maintaining united action of labor and management 

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

use of the present productive capacity of industries, by avoiding 

undue restriction of production ( except as may be temporarily required), by increasing 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 it is not classified by me as a tnajor industry. 

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

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

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

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

applicant group is an Association truly representative of the aforesaid Subdivision of the Industry; and that said -Association imposes 

no inequitable restrictions on admission to membership therein. 

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

monopolies or monopolistic practices. 

( e) The Supplemental 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 the approval 

of this Supplemental Code. 

(g) In accordance with the provisions o:f Article XIV of the 

Code of Fair Competition for the Electrical Manufacturing Industry, this Subdivision is entitled to and permitted Supplemental 

Code thereto. 

For these rea,sons, therefore, I have approved this Supplemental 

Code. 

Respectfully, 

HuoH S. JOHNSON, 

A dm!inis trat01'. 

JUNE 9, 1934. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE REFRIGERATION INDUSTRY . 

A DIVISION OF THE ELEarRIOAL MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are establishe<h :pursuant to 

the provisions of Article XIV of the Basic Code of .If air Competition for the Electrical Manufacturing Industry, approved by the 

President August 4, 1933, as a Supplemental Code of Fair Competition for the Refrigeration Subdivision of the Electrical Manufacturing Indu try, and upon the eleventh day after approval by 

the President ,shall, together with the provisions of said Ba ic Code 

and any modifications thereof, or additions or supplement thereto, 

hereafter made, be made a part of and be the standard of fa.ir 

competition for the Refrigeration Subdivi ion of the Electrical 

Manufacturing Industry. 

ARTICLE II-DEFINITIOKS 

Ann LE III- E 

(a) r hall mark r brand an 

1n any mann r whi h ha th t nd n 

(4) 

nited 

ational Indu trial 

]mini tra or for 

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tomers or prospective customers as to the substance, grade, quality, 

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

sold or offered for sale. 

(b) Employers shall refrain from inducing breach of consumers' 

contracts, and shall refrain from enticing away employees of competitors for the purpose of unduly hampering, injuring, or embarra ing competitor in their business. ( c) Employers shall refrain from wilful or malicious defamation 

of competitors and from disparagement of competitors' products. 

( cl) Employers shall not give secret rebates or di counts, free 

special services or exorbitant advertising allowances. 

( e) Employer shall not give, permit to be given, or directly offer 

to give anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another 

in relation to the business of the person employing such employee, 

the principal of such agent or the represented party. This provision 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. Commercial bribery provisions shall not be construed to 

prohibit prize conte ts openly conducted among salesmen. 

(f) Employers shall not give, permit to be given, or directly 

offer to give rewards or premiums to actual or to prospective purchasers of their products. This clause shall not be construed to 

prohibit prize contests openly conducted among actual or prospective purchasers of such :products.1 

(g) The making or circularization of threats of suit for infringement of patents or trade marks to or among customers of a competitor, not made in good faith and for the purpose of harassing and 

intimidating customers is prohibited. 

ARTICLE IV-ADVERTISING AND SALES PROMOTION 

Adverti ing and sales promotion as dealt with in this Code shall 

have the broadest possible interpretation. The term shall apply 

without limitation to magazine and newspaper advertising, billboards, radio broadca ting, house organs, catalogues, direct mail 

material, and to all forms of advertising and sales promotional 

activities in verbal or printed presentation. 

(a) No employer shall make or cause or permit to be made or 

published any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the materials of construction 

used in, the operating characteristics of, the quality, size, origin, or 

preparation of any product of the Industry sold or offered for sale. 

(b) No representation of a character calculated to mislead the 

uninformed or ca ual reader shall be used. All statements made in 

advertising or sales promotion shall be complete and so phrased as 

to convey to the casual and uninformed reader the full and complete 

facts . 

( c) No false, untrue, or misleading statements shall be made, 

either directly or by inference, in any advertising or sales promotion 

concerning the product advertised or any competitive product, nor 

1 See paragraph 2 of order approving this Code. 
6 

shall any statement be made the effect of which will be to mislead 

the public with respect to other products. 

( d) Advertising and sales promotional activities offering products 

which are not intended to be openly and freely sold, with the object 

of attracting customers for the purpo e of selling other products, 

are expre sly prohibited. ( e) Neither direct nor indirect u e shall be made of competitive 

apparatus for comparatiYe purpo e in connection with sales 

promotion or advertising. 

ARTICLE V-W ARRANTY AND SERVI E POLICY 

(a) Except as pecial provisions shall from tim to time be 

approved by the Supervi ory Agency for this Subdivi ion and by 

the Administrator, no employer shall give any expre warranty 

which extend hi re ponsibility for refrigeration equipment manufactured and/ or old by him beyond one year from the date upon 

which such refrigeration equipment is installed on the premi es of 

the original purchaser, or which extends his responsibility for such 

refrio-eration equipment beyond the replacement or repair of such 

equipment which hall be defective in material and/ or workman hip. 

(b) Employers may develop individual plans for providing replacement units in case of failure after the expiration of the warranty provided: 

(1) Adverti ing and ales promotion shall contain no r pre entation which, by reference to any term of year or by the use of trade 

term or phra es not readily understood by the public, or otherwi e, 

would cau e any person to assume that an extension of the uniform 

warranty is intended, nor shall any repre entation b mad in 

adverti ing or ales promotion which will in any way tend t nfu e 

su h unit replacement plans with the warranty; 

(2) In any case in which an employer's I olicy with re p t to 

unit rPplacement is referred to in adverti ing or al prom i n 

su h advertising and sale promotion shall tate clearl the am unt 

11hich has been added to the complete unit pri e to cov r the a 

co t of unit r placement. 

( c) The term ' ori o-inal purcha r as u d in thi hall 

be d med to m an that person firm a s iation or rp r ti n f r 

whom the r frio- rating quipm nt r ferr 1 to h r in i orio-inall 

in tall d · or the bona fid a io-ne f that p r on firm a 

or 

RTI LE 

(a) _Th f 11 wing Ir vi 

pr v1 . 1 n may fr m tim 

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(b) Sales made by employers to their outlets shall, whenever feasible, be subject to collection by sight drafts attached to the bills of 

lading. Open account shall in no case be extended by employers to 

their outlets beyond the 20th prox., unle s such accounts, extended 

beyond the 20th prox., shall be evidenced by a negotiable note, trade 

acceptance, or similar negotiable instrument bearing interest at an 

annual rate of 6 percent ( 6% ), or the maximum legal rate, whichever 

is lower. Ern.ployers shall charge interest at an annual rate of six 

percent (6% ) or the maximum legal rate, whichever is lower, on all 

overdue accounts. 

ARTICLE VII-INVESTIGATION OF Col\IPLAINTS 

(a) Upon receipt of written complaint filed by an employer, the 

Supervi ory Agency of the Refrigeration Subdivision of the Electrical 1\1:anufacturing Industry shall cause an investigation to be 

made for the purpose of establishing the facts. If such investigation establishes facts from which there is a presumption that this 

Code has been violated, the offending employer shall be requested 

by registered letter from such Supervisory Agency to refrain from 

such offending practice, and if that employer repeats or continues 

the offense, the matter may be referred through the proper channels 

to the Administrator for such action as seems to him proper in the 

circumstances. 

\Vhen any investigation is made or authorized by the Supervisory 

Agency of the Refrigeration Subdivision, such investigation shall 

be made by a person or persons not employed by any member of 

the industry whenever such investigation requires facts to be obtained 

which should not be made known to competitive organizations. 

(b) If the Administrator shall determine that any action of a 

Code Authority or any agency thereof may be unfair or unjust or 

contrary to the public interest, the Administrator may require that 

such action be suspended to afford an opportunity for inve tiga.,__ion 

of the merits of such action and further consideration by such Code 

Authority or agency pending final action which shall not be effective 

unless the Admini trator a pp roves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

ARTICLE VIII-MODIFICATIONS 

(a) This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, 

approval, license, rule, or regulation issued under said Act. 

(b) This Code, except as to provisions required by the Act, may 

be modified or amended on the basis of experience or changes in 

circumstances, such modification or amendments to be based upon 

application to the Admini trator and such notice and hearing as 

he shall specify, and to become effective on approval of the Administrator, unless otherwise provided, and when so approved shall have 

the same force and effect as any other provision of this Code. 
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ARTICLE IX-EFFECTIVE DATE 

This Code shall become effective on the eleventh day after its 

approval by the Administrator unle otherwise provided. 

Approved Co le No. 4- u1)plement No. 1. 

R egistry No. 1328-16. 

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