Approved Code No. 347-Supplement No. 20 Registry No. 1399- 49 

NATIONAL RECOVER¥ ADMINISTRATION 

I 

SUPPLEMENTARY t 

C·ODE OF FAIR COMPETITION 

FOR THE I 

HOIST BUILDERS INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 12, 1934 

'WE DO OUR PART 

UNIV. 01' FL LI . I MTS .Ql=PT. 

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U NITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by t he Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

V 

--
This publication is for sale by the Superintendent of Documents, Government 

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

and Domestic Commerce. , 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

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. 

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. 347-Supplement No. 20 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

HOIST BUILDERS INDUSTRY 

As Approved on June 12, 1934 

ORDER 

SUPPLEMENTARY CoDE OF F AIR COMPETITION FOR THE HoisT BmLDERS 

INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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 Hoist Builders Subdivision 

of Machinery and Allied Products 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 P resident : 

NOW, TH EREFORE, 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 Order of the 

P resident, including Execntive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference ·aid 

annexed report and do find that said Supplemental Code complie 

in all respects with the pertinent provisions and will promote the 

policy and purpo e of said Title of said Act; and do hereby order 

t hat said Supplemental Code of Fair Competition be and it is 

hereby approved ubject to the following conditions: 

(2) That the proviisons of Article VIII, Section (a) insofar as 

they prescribe a waiting period between the filing with the Code 

Authority ( or uch agency as may b 0 de ignated in the Supplemental Code) and the effective date of pric list as originally filed 

and/or revised price list or revised term and conditions of sale be 

and they hereby are stayed pending my further order. 

(2) That the provi ions of the secon l paragraph of Article VIII 

Section ( d) be and they hereby are tayed pending the "ubmi sion of 

satisfactory evidence concerning distribution of the products of the 

Subdivi ion to the Administrator. 

67078°-657-102-34 (1) 
2 

(3) That the provisions of Article IX, Sections 5 to 10 inclusive, be and they hereby are stayed for a period of fifteen (15) days, 

then to become effective unless I, by my further order otherwise 

direct; w.ithin which time cause may be shown, if any there be, why 

the above provisions should not become effective; and that the Temporary Code Authority send notice of the stay of these provisions 

and of the opportunity to show cause why they should not become 

effective to all known e1nployers of the Subdivision. 

Approval recommended. 

A. R. GLANCY, 

HUGH S. JOHNSON' 

Administrator for Inditstrial R ecovery. 

Division Administrator. 

WASHINGTON, D.C., 

June 12, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

Sm: This report relates to the Supplemental Code of Fa.ir Competition for the Hoist Builders Subdivision of Machinery and Allied 

P roducts I ndustry as proposed by the Hoist Builders Association. 

A public hearing was held in Washington, D.C., on December 4, 

1933 and reconvened on December 21, 1933. The public hearings 

were conducted in accordance with the provisions of Title I of the 

National I ndustrial Recovery Act and all persons were given full 

opportunity to be heard. 

GENERAL STATEMENT 

The Hoist Builders Subdivision, being truly representative of the 

manufacturers of the products defined in Article II of this Supplemental Code, ha elected to formulate and submit a Supplemental 

Code of Fair Competition as provided in the second paragraph of 

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

Allied P roducts I ndustry approved by you on the seventeenth day 

of March, 1934. The Subdivision includes the design, manufacture, contracting for 

and/or subletting the manufacturing for sale of hoists as specifi cally 

described in the definition of the Subdivision but does not include 

hoists commonly known as contractors hoists, slusher hoists, direct 

lift hoists, simple cylinder hoists, monorail hoists, trolly hoists, body 

and dump truck hoists. 

ECONOMIC EFFECT 

This Subdivision has been severely affected. by the recent depression. This is evidenced by the steady decline in annual ales since 

1929. Annual sales for 1932 were 90 per cent below the 1929 level, 

declining from $1,414,000 in 1929, to $135,000 in 1932. Inve tecl 

capital has declined 2.7 per cent since 1929, while production capacity 

has reh1ained constant. 

Employment in the Subdivision declined from 429 in 1929 to 

114 in 1932, or 73.3 per cent, and increased to 140 employee. in 

1933, or 22.8 per cent over the 1932 level. 

The effects of the 40-hour provision with production at more normal levels may be estimated on a basis of the 1930-31 average of 

total man-hours per week divided by the number of hours prescribed 

in the Code. After 1929, man-hours declined steadily from 22,760 to 

a minimum of 3,430 in 1932 or approximately 85 per cent. l\!Ianhour for 1933 have increased to 7,980, or more than 100 per cent over 

the 1932 level. 

(3) 

.. 
4 

If it is as urned that the average man-hours for 1930-31 are representative of the volume of production for tho e years, and a reasonable measure of man-hour requirements in a more normal period, 

the adoption of the 40-hour week would require a force of approximately 260 employees, or about 60 per cent of the 1929 working level. 

Approximately 70 per cent of the workers in June, 1933 were 

working more than 40 hours per week. The av rage work week in 

October, 1933 was 35.3 hours. ,vith production remainino- at present 

levels, no increase in employment may be expected with the adoption 

of the 40-hour week. 

However, owing to the impossibility of all employees of the Subdivi ion working the maximum 40 hours, the average work week 

will be shorter, say 36 assumed effective hours, and the employment 

correspondingly greater, viz: 290 workers will be required to produce the 1930-1931 volume. 

The minimum wage provisions propo eel for the Subdivisions 

which are operating under the Code for the J\fachinery and .Alli~d 

Products Industry are based on a flat minimum hourly rate of 32 

cents per hour for the South and the following city population differentials for all other sections of the United tates: 

Over 50,000 pop.ulation ________________________ 40 cents per hour 

Over 10,000 to 50,000 population ___ ____________ 38 cents per hour 

10,000 population and under ___________________ 36 cents per hour 

In addition to the minimum wage rates shown above, the Code 

provides that women engaged in substantially the same work as men 

shall receive the same rate of pay as such men employees; that the 

minimum wage for women employees employed in plant operations 

shall not be less than 87.5 per cent of the proper rate for the locality 

in which employed as specified; and that the minimum in the South 

shall be not less than 32 cents per hour. 

Estimated number of factory workers receiving less than designated hourly rates 

Proposed minimum hourly rates 

40 cents (other U.S.) ____________________________________________________ ___ _ 38 cents (other U.S.) _______________________________________________________ _ 36 cents (other U.S.) ___ ____________________________________________________ _ 32 cents (Sou th) ______________ ______ ____________________________ ___________ _ 

Distribution of factory 

workers receiving less than the minimum re- gardless of location 

Approximate Approximate 

percent number 

23. 7 

19.5 

15.4 

16.3 

53 

44 

35 

23 

Ba ·ed on the distribution as of June 15 1933 and on the pecified 

percentages of the number of factory work r r ceiving le than 

the designated rates shown in the above tabl the adoption of th 

propo ed minimum rates will probably cau an incr ase in factory 

payroll . The estimated in rease a of Jun 15 1933 reo-ardle s of 

location of the worker will probably un 1 r th most fa orabl 

condition , not ex eerl 6.0 per cent a umino· nly upw·ar l adju tment 

in the brack t below the 40 c nt minimum anu no change in manhour requirement . 
5 

Distribution of the nu1Uber of factory wo:rkers receiving classified 

rates in the specific areas are not available. Consequently, it i. only 

possible to estimate the approximate number of factory workers who 

will receive the benefit of the propo ed minimum hourly rate , r&-

gar Hess of location, on the basis of the number of factory workers 

receiving less than the designated hourly rates as 01 June 15, 1933. 

RESUME OF SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Co(le. 

Article II accurately defines the products and . pecific terms applicable to the Hoist Builders Subdivision as used in this Supplemental Code. 

Article III provides for the adoption of the employment provisions of the National Industrial Recovery Code of the Machinery 

and Allied Products Industry, as approved by you, and as from time 

to time amended. 

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

IX of the National Industrial Recovery Code of the ~1achinery and 

Allied Products Industry, in accordance with the conditions in this 

Article governing their adoption. 

Article V establishes a Code Authority consisting of the Executive 

Committee of the Hoist Builders Association consisting of not less 

than four and not more than seven members and one additional 

member to be elected by employers not members of the Applicant. 

In addition to the members named above, the Administrator may, in 

his discretion, appoint one member without vote and without expense 

to this Subdivision. In addition to the organization of the Code 

Authority, the powers and duties thereof are also ot1tlined in this 

Article. 

Article VI establishes a uniform accounting system and method of 

cost finding and/ or estimating to be used by all employers in the 

Subdivision. 

Article VII provides that no products of the Subdivision shall be 

sold or offered for sale below a reasonable cost when the Code 

Authority determines that an emergency exists. 

Article VIII provides for methods of setting up, revising and 

filing price lists and discount sheets and terms of sale and payment. 

Article IX sets forth trade practices for the Subdivision. 

Article X. No provisions of this Supplemental Code relating to 

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

export trade or sales or shipments for export trade, as defined by 

the term " export " in this Article. 

Article XI. This Supplemental Code and all provision~ thereof 

are made subject to the right of the President, in accordance with 

ubsection (b) of Section 10 of the Act, from time to time to cancel 

or modify any order, approval, license, rule, or regulation issued 

under aid Act. Provision is also made that amendments, additions, 

revisions, or supplements proposed by Code Authority may be submitted from time to time for the approval of the Administrator. 

Article XII. No provi. ion of this Supplemental Code shall be so 

applied as to permit monopolies, or monopolistic practices, or to 

eliminate, oppres , or di criminate against small enterprises. 
6 

Article XIII. This Supplemental Code shall become effective on 

the eleventh day after its approval by the Administrator. 

FINDINGS 

The Assi-tant 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 fincl that: 

(a) Said Supplemental Code is well designed to promote the pol1c1es and purposes of Title I of the National Industrial Recovery 

Act, inclu_ding 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 o:f industry for the purpose of cooperative action 

umong 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 mav be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving tandards of labor, and by otherwise rehabilitating industry. 

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

employees; and is not classified by me as a major 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 association is an industrial association truly representative 

of the aforesaid Subdivisions; and that said association impo es no 

inequitable restrictions on admission to membership therein. 

(cl) 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 op~rate to discriminate 

against them. 

(f) Those engaged in other steps of the economic proces have 

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

Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, provided that c~rtain provisions relating to price publicatiol1⁄4 

trade practices, ancl Article VIII, Section ( e) arc tayed, as stated 

in the Order. 

Respectfully, 

JUNE 12, 1934. 

I-IuGH S. JOHNSON, 

Adm,inist11ator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE I-IOIST BUILDERS INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplemental Code of Fair Competition for the Hoist Builders Subdivision of the Machinery and AlliBcl Products Industry, and together 

with the Code of Fair Competition for the Machinery and Allied 

Products Industry to which it is a Supplement shall be the standard 

of fair competition for this Subdivision, and shall be binding on 

each employer therein. 

ARTICLE II-DEFINITION 

"Applicant" means the Hoist Builders Association, a trade organization truly representative of this Subdivision, all members of which 

are engaged in the manufacture for sale of the products of the Hoist 

Builders Subdivision of the Machinery and Allied Products 

Industry. 

"Industry" means the Machinery and Allied Pro-ducts Industry 

as defined in its Code of Fair Competition as approved by the President, March 17, 1934, and as such definition may from time to time 

be amended. 

"Subdivision" means the Hoist Builders Subdivision of the Machinery and Allied Products Industry as defined and set forth in 

Paragraph (13) of Article II of the Code of Fair Competition for 

the Machinery and Allied Products Industry as follows: 

"Hoist Builders Subdivision means the design, manufacture, contracting for and/or subletting the manufacturing for the sale of 

hoists operated by electricity, gas, oil, air or steam, for hoisting or 

hauling materials or men and for all industrial uses in which such 

type of hoists, commonly known as mine hoists are applicable, including spare, repair and replacement parts thereof, and includes all 

those so engaged; provided that the Subdivision shall not include 

those typBs of hoists, including spare, repair or replacement parts 

thereof, commonly known as contractors hoists, slusher hoists, direct 

lift hoists, simple cylinder hoists, monorail hoists, trolley hoists, 

body and dump truck hoists." 

"Code" means the Code of Fair Competition for the Machinery 

and Allied Products Industry, as approved by the President, and 

as from time to time amended. 

" Person " means a natural person, a partnership, a corporation, 

an association, a trust, a trustee, a trustee in bankruptcy, a receiver, 

or other entity. 

"Employer" means any person engaged in this Subdivision of 

the Industry, either on his own beha;lf or as an employer of labor. 

(7) 
8 

"Employee" means any one who is employed in the Subdivision 

by any such employer. 

"The Ad" means Title I of the National Industrial Recovery Act. "The P.resi<lent" means the President of the United States. 

" The Administrator ' means the Administrator for Industi·ial 

Recovery. 

"Basic Code Authority " means the Code Authority for the 

Machinery and Allied Products Industry as constituted by the Code. 

"Code Authority " mean · the Code Authority constituted for this 

Subdivision as provided by the Code and by this Supplemental Code. 

" Group Code Authority" mean the Code Authority for any group 

or classification of products within this Subdivision, constituted 

under the authority of Article V of this Supplemental Code. 

"Publish " means to make available to the public. "Principles" means all essential characteristics. 

ARTICLE III-EMPLOYMENT PROVISIONS 

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

Hours __..., Article IV " W·1 aes "· and Article V " General Labor ' ' G b ' ' Provisions", are hereby made a part of this Supplemental Code, 

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

Code. 

ARTICLE IV- ADOPTION OF OTHER PROVISIONS OF CODE 

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

Article VI, "Administration ", to the extent that they shall be 

applicable to this Supplemental Code as such or as it may hereafter 

be administered as an autonomous Code; Article VIII, " :Modifi ations and Termination "; and Article IX, "Withdrawal " are hereby 

made a part of this Supplemental Code with the same effect as if 

they were written into this Supple.mental Code. 

ARTICLE V-ORGANIZATION AND ADMINISTRATION 

To administer and supervise, and facilitate the performance of the 

provisions of this Supplemental Code, there is hereby stabli ·hed 

a " Code Authority." 

(a) The Code Authority for this Subdivi ion shall consi t of 

( 1) The Executive Committee of the Hoist Builders A ' ociation, 

consisting of not less than four and not more than seven member . 

(2) One additional member to be elected in any fair manner, 

with the approval of the Admini trator, by employers in this Subdivision not members of the Applicant, who are cooperating in thi. 

Supplemental Code, as described in S0 ction ( e) hereof, if o desired, 

by such non-members. 

(3) The Administrator may, at hi discretion appoint one additional member ( without vote and without expen ·e to the ubdivision). 

(b) Each trade or industrial as ociation dire ·tly or indir tly participating in the selection or activiti of the ode Authority hall 

(1) impo e no inequitable restriction on memb r hip ancl (2) . ubmit to the Admini trator true copies of its article of a. sociation, bylaws, regulation , and any amentlm nts when made th r to, toa th r 
9 

with such other information as to membership, organization, and 

activities as the Administrator may deem necessary to effectuate 

the purpose of the Act. 

(c) In order that the Code Authority shall at all times be truly 

representative of the Subdivision and in other re pects comply with 

the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the 

Code Authority is not truly representative or does not in other 

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

appropriate modification in the method of selection of the Code 

Authority, or any Group-Code Authority. 

The Code Authority may adopt rules and regulations for its procedure and employ such personnel as it may deem necessary. 

( d) Any employer in this Subdivision shall be eligible for membership in Hoist Builders Association. 

( e) Any employer in this Subdivision shall be entitled to vote, 

subject to the provisions of Section (a) hereof, at the election of, and 

share in the benefits of the activities of the Code Authority, and 

may participate in any endeavors of the Code Authority, in the 

preparation of any revisions of, or additions or supplements to, this 

Supplemental Code, by paying his lJroper pro rata share of the reasonable cost of creating and administering it, as determined by the 

Code Authority, such vote of employers in this Subdivision to be 

determined subject to the provisions of Section (a) hereof, by a 

vote of employers who are at that time eng!lged in manufacturing 

such product, and are at that time cooperating in this Code, as above 

described in this Section ( e) of this Article V, cast concurrently in 

each of the two following methods: ( 1) by one vote of each employer. (2) By vote of employers weighted on the basi of one 

vote for each $25,000 of sales booked of such product of said employers who are at that time engaged in manufacturing such products, made in the preceding five calendar years, as reported to the 

Code Authority of this Subdivision. Each en1ployer shall be entitled to at least one such vote. 

Except as otherwise provided in this Code any action taken at any 

meeting of employers shall be by a majority vote, cast and c-omputed 

in each of the two methods hereinabove provided. 

( f) Employers in th.is Subdivision having a common interest and 

common problems, may be grouped by Code Authority for 

administrative purposes into various Group Subdivisions, or product 

classifications. 

In each Group Subdivision, or product classification, there may 

be a Group-Code Authority approved, or appointed, by Code 

Authority. 

(g) If formal complaint is made to Code Authority, that provisions of this Supplemental Code have been violated by any ~mployer, this Code Authority or proper Group-Code Authority, may 

cause such inve tigation or audit to be made, to the extent permitted by the Act, as may be deem-ed necessary. If such inve tigation i made by Group-Code Authority, it shall report the results 

of such investigation or audit to Code Authority for action. 

Unle s Ba ic Code Authority shall take juri diction, the Code 

Authority hall have the right to investigate to the extent permitted 
10 

by the Act, and analyze any transaction coming under the SCOJ?0 

of this Supplemental Code, on which any unfair Ot)mpetition 1s 

alleged, to show evidence of any violation of this Supplemental 

Code, to report any such alleged violation •to the proper authorities fop action. 

ARTICLE VJ-AccouNTING AND CosTING 

The Code Authority shall cause to be formulated an accounting 

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

use by all employers of the Subdivision. After such system anq. 

methods have been formulated, full details concerning them shall 

be made available to all employers. Thereafter all employers shall 

determine and/ or estimate costs in accordance with the principles 

of such methods. 

ARTICLE VII-SELLING BELow REASON ABLE Co T 

(a) When the Code Authority has reason to believe that an emergency exists as to any product or products of the Subdivision, and 

that the cause thereof is destructive price-cutting such as to render 

ineffective or seriously endanger the purposes or the maintenance 

of the provisions of this Supplemental Code, the Code Authority 

may cause an investigation of costs and pricing to be made by an 

impartial agency in order to determine the existence of the emergency and the Code Authority may cause to be determined the lowest reasonable cost of the product or products of this Sub di vision, 

such determination to be subject to such notice and hearing as the 

Administrator may require. The Administrator may approve, disapprove, or modify the determination. Thereafter during the period of emergency, no employer of the Subdivision shall sell or offer 

to ell any product or products of the Subdivision for which the 

lowest reasonable cost has been determined at such prices or upon 

such terms or conditions of sale that the buyer will pay le s therefor 

than the lowest reasonable cost of such products. 

When it appears that conditions have changed, the Code Authority, upon its own initiative or upon the reque t of any intere tecl 

party, sJ1all cause the determination to be reviewed. 

ARTICLE VIII-PRICE LISTS 

(a) If and when the Code Authority of this Subdivi ion <let rmines 

that in any branch or group of the Subdivi ion it ha been th o-enerally recognized practice to sell a specified product on th ba i · of 

net price lists, or price lists with di count heet , and fix 1 t rm of 

sale and payment, each employer shall, within ten (10) day after 

notice of uch determination, file with the ode Auth rity a net 

price li t, or a price li t an :I. di count he.et, a. the ca e ma be individually prepared by him showino- his curr nt price r pri and 

di counts, and term of ale and paym nt, for uch sp ifi d pr du t 

and the Code Authority hall immediately publi h an 1 end pi 

thereof to all known employer~ who are ooperating in thi uppJemental Code as described in ection ( e) of Arti le V h reof. 
11 

Revised price lists and/or discount sheets and/or terms of sale 

and payment for such product may be filed from time to time thereafter with the Code Authority by any employer, but such revised 

price lists and/or discount sheets and/or term of sale and payment 

shall be filed with the Code Authority ten (10) days in advance of 

the effective date. Copies of such revised price li ts and/or discount 

sheets and/ or terms of sale and payment, for such product, with 

notice of the effective d~te specified, shall be irrunediately published 

and sent to all known employers who are cooperating in this Supplemental Code as described in Section ( e) of Article V hereof, any 

of whom may file, if he so desires, to become effective upon the date 

when the revised price list and/ or di count sheet and/ or terms of 

sale and payment first filed shall go into effect, r visions of his price 

lists and/ or discount sheets and/ or terms of sale and payment estab- lishing prices or prices and discounts not lower or terms of sale and 

payment not more favorable than those established in the revised 

price lists and/or cli'"count sheets and/or terms of sal e and payment 

first filed. Nothing in the fore.goin~ shall con titute a limitation 

upon the right of any employer to file revised lists fixing his own 

prices, discounts and terms of sale and payment, which prices and 

discounts may be either more or less favorable than tho e contained 

in any other price list, to be effective as provided in the first sentence 

of this paragraph.1 

(b) If and when the Code Authority shall determine that in any 

branch or group of the Subdivision not now selling its product on 

the basis of price lists, with or without discount sheets, with fixed 

terms of sale and payment, the distribution or marketing conditions 

in said branch or group are the same as, or similar to, the distribution 

or marketing conditions in a branch or group of the Subdivision 

where the use of price lists, with or without discount sheets, and 

fixed terms of sale and payment, is well recognized, and that a system of selling 9n net price lists or price lists and discount sheets 

with fixed terms of sale and payment for such product should be 

put into effect in such branch or group, then each employer of such 

branch or group shall within ten (10) days after notice of such determination, file with the Code Authority net price lists or price lists 

and discount sheets, containing fixed terms of sale and payment, 

showing his current prices and discounts and terms of sale and payment, and such price lists and/ or discount sheets and/ or terms of sale 

and payme11t may be thereafter revised in the manner hereinabove 

provided; provided, however, that the Code Authority shall make 

no determination to place any product of the Subdivision ( not now 

on a price list basis) on a price list basis, as provided in this paragraph (b) of Article VIII, unless the employers who are at that 

time engaged in manufacturing such product and are at that time 

cooperating in this Code, have given affirmative consent to such determination. The eligibility requirements, n1ethod, and effect of 

such -voting shall be the ame as provided in Section ( e) of Article V. 

Each employer shall prepare and shall furnish the Code Authority 

f~>r di tribution with uch number of copies of his price lists and/or 

discount sheet and terms of sale and payment as Code Authority may 

prescribe. 

1 See paragraph 2 (1) of order approving this Code. 

• 
12 

( c) No employer shall sell directly or indirectly by an:y means 

whatsoever, any product of the Subdivision covered by provu,ions oi 

this Article VIII at a price or at discounts, or on terms of sale and 

payment,.. different from those provided in his own current net price 

lists, or price lists and cl-iscount sheets, provided that nothing in the 

above shall .prevent an employer from adding to his own price and/ or 

price list and discount sheets by increasing his job price to include 

unusual selling, engineering, servicing, financing, financial risks, or 

other similar special charges, ( except as provided in Article VII 

above), provided, however, that in the event of an employer quoting 

a higher price than the price published in his own price list and/or 

price list and discount sheets, to take care of unusual selling, engineering, servicing, financing, financial risks, or other similar special 

charges, he shall not subsequently quote a lower price on said prospective sale than that price first quoted, except in accordance with 

revised price lists duly filed or unless he simultaneously eliminates 

part or all of the unusual engineering, servicing, financing, financial 

risks or other similar special charges, for which a corresponding 

reduction only may be made. 

( d) No employer shall sell to, or through any broker, jobber, 

commission account or sales agency, ( this is known in the trade as 

"pooled buying") , who or which is in fact an agent for an organization of industrial consumers, with the result that any industrial consumer secures a discount, allowance or price other than the discount, 

allowance or price provided for in the employer's own current net 

price lists or price lists with discount sheets. 

No employer shall evade any provision of this Code by selling to 

or through any dealer, jobber, distributor or other selling agency 

which shall fail to agree to resell in accordance with the provisions 

of Articles VII, VIII, and IX of this Supplemental Code. 2 

( e) Wherever by the provisions of this Article VIII an employer 

is or may be required to or permitted to file terms of sale and payment, such terms shall mean usual or standard terms, and to cover 

any special and/ or ·unusual terms definite formulae for determining 

such special and/ or unusual terms shall be filed. 

(f) If and when Code Authority shall determine that it is undesirable to continue the filing of net price lists and/ or price lists 

with discount sheets and/ or fixed terms of sale and payment on any 

product in respect of which such filing has heretofore been required, 

such filing shall cease and the provisions of this Article shall not 

apply to such product unless and until Code Authority shall again 

determine that such filing be made. 

ARTICLE IX 3-TRADE PRACTICES 

Each of the following acts and practices is deemed to be inimical 

to the best interests of this Subdivision, and of the public, uncl each 

is, therefore, hereby declared to be, and to constitute, an unfair 

method of competit10n, viz:-

1. The secret offering or making, to any customer, agent, .fiduciary 

or representative of customer, of any payment or allowance of a 

t See paragraph 2 (2) of order approving this Code. 1 See paragraph 2 (3) of order approving this Code. 
13 

rebate, refund, commission, credit, credit subsidy, unearned discount 

or excess allowance, whether in the form of money or otherwise, or 

any special service or privilege, for the purpose of influencing a sale. 

No employer of the Subdivision shall give, permit to be given, or 

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 employer of such employee 

or the principal of such agent without the knowledge of such employer or principal, provided that no provision of this Code shall bs 

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 hereinabovc defined. 

2. Any discrimination bet,veen purchasers, by the sale of any article having a published price, at any price other than the seller's 

published price, by means of direct or indirect price concessions, or 

by n1eans of any privilege not extended to purchasers generally. 

3. Untruthfully advertising, repr~senting, or marking any product, 

with intent to deceive or mislead. 

4. The publishing or circularizing of threat of any suit for infringement of patent or trade mark, or of any other legal proceedings, 

not in good faith, which would tend to harass a competitor or 

intimidate his customers. 

5. The taking in trade or accepting in trade any secondhand or 

old equipment in part payment for new, provided, however, that this 

provision shall not be construed to prohibit in any way the return 

within six months of the date of shipment, to the Vendor and the 

allowance of any fair adjustment thereon by th~ Vendor of any product which shall not meet the purposes for which it was sold. Any 

employer may, however, assist in finding a bona fide buyer for said 

equipment, but shall in no case take any financial interest in it. 

6. So long as the maker of any product of this Sub di vision bear- ing the maker's name or trade mark, which has required special 

designing, research or development expense ( or his successor in business) continues to make and supply such spare, repair and replacement parts therefor, supplying repair parts for such product of this 

Subdivision unless (a) the name of the maker of such copied nongenuine repair parts shall be plainly mar keel on each part ( or if this 

is impracticable on the package or tag) so that the ultimate user is 

clearly informed by marking on such parts, packages, tags and in 

catalogues, price lists, quoted prices, adverti ements or advertising 

literature of the manufacturers of such copies non-genuine parts that 

said parts were not made by the original maker of the product of 

the employer of this Subdivision. 

7. The furnishing to any purchaser, and/or his agent, directly or 

indirectly of detailed shop drawings of the products of this Subdi- vision without filing a statement of such proposed transaction with 

the Code Authority which may approve or with the approval of the 

Administrator disapprove the transaction within ten (10) days by 

written notice to the employer. 

8. Disseminating false or misleading informatiou relative to competitor's products, selling prices, reputation, credit or financial 

standing, ability to perform work, or labor conditions. 
1111111111~~1!~~1~11\li i11 ll~111\1 \1l11i1 \ll1i 111111111 

3 1262 08852 5711 

14 

9. Inducing or attempting to induce a breach or abandonment of 

contract covering the purchase or sale of the product of this Subdi vision; provided, however, that nothing in this Section shall be 

construed to prohibit the attemJ)t on the part of the ownel' of 01· 

licensee under any patent to induce a purchaser 01· future purchaser 

of any product which shall infringe said patent, to avoid such 

purchase. 

10. It shall be an unfair trade practice for any employer to engage 

in destructive :price cutting. 

ARTICLE X-SALES FOR EXPORT 

. The provisions of this Supplemental Code concerning pricing and 

marketing (Articles VII, VIII and IX) shall not apply to direct 

export ales of any product. A similar exemption may be granted 

by the Code Authority of this Subdivision as to sales of any product 

destined ultimately for export. Unless otherwise determined by the 

Code Authority the term "export" shall include all shipments to 

all places without the several states of the United States and the 

District of Columbia; provided, however, that no shipment to any 

territory or possession of the United States shall be considered an 

export when any employer is engaged in the industry in such territory or posse sion. 

ARTICLE XI-MODIFICATIONS 

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

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

or regulation issued under Title I of the Act. 

(b) Study of the trade practices of thi Subdivision will be continued by Code Authority, with the intention of submitting, from 

time to time, after its effective date, amendments or additions to, or 

revisions of, or upplements to, this Supplemental Code. 

Any such amendments, additiOJ?.S revisions, or supplements, proposed by Code Authority, an l approved by a vote of the employers 

shall be in full force and effect upon approval by the President. 

The eligibility requirement , method, and effect of such voting shall 

be the ame as provided in Section ( e) of Article V. 

ARTICLE XII-MONOPOLIES 

The Supplemental Code presented by Applicant is not designed to 

promote monopoly, and shall not be so con trueJ or applied as to 

oppre · or eliminate ·mall enterpri. es or discriminate against them, 

and i le igned to effectuate the Policy of the Act . 

. ARTICLE XIII-EFFECTIVE D ATE 

This Supplemental Code shall become effective and bindino- on 

all persons ngaged in this ubdivi ion on the eleventh day after its 

approyal by the Pre ·id nt. 

ApproY cl Code To. 347. Supplement No. 20. 

Rrgistry No. 1300-49. 

0 

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