Approved Code No. 347-Supplement No. 21 Registry No. 1399-50 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITIO·N 

FOR THE 

KILN, COOLER AND DRYER 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 12, 1934 

WE DO OUR PAR'( 

UNIV. Off FL LI 

P. 

' . ________ I • • • r 

.... _ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the 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 P ost 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, l\Io.: 10~8 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 22!) Federal Building. 

Minneapolis, l\linn.: 213 F ederal Building. 

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

New York, N.Y.: 73-1: Customhouse. 

Norfolk, Va.: 40<3 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 Oilice Building. 
Approved Code No. 347-Supplement No. 21 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

KILN, COOLER AND DRYER MANUFACTURING 

INDUSTRY 

As Approved on June 12, 1934 

ORDER 

SuPPLEMENTARY ConE OF FAIR COMPETITION FOR THE KILN, CooLER 

AND DRYER MANUFACTUfilNG 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 Kiln, Cooler and Dryer 

l\1anufacturjng 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 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 

subject to the following conditions: 

( 1) That the provisions of Article VIII, Section (a) insofar as 

they prescribe a waiting period between the filing with the Code 

Authority ( or such agency as may be designated in the Supplemental 

Code) and the effective date of price lists, as originally filed and/ or 

revised price lists or revised terms and conditions of ale, be and 

they hereby are stayed pending my further order. 

(2) That the provisions of the second paragraph of Article VIII, 

Section ( d) be and they hereby are stayed pending the submission 

of satisfactory evidence concerning distribution of the products 

of the Subdivision to the Administrator. 

67283°- 657- 110-34 (1) 
2 

(3) That the provi ion of Article IX, Sect.ions 5 to 10 inclu ive; 

be and they hereby are -tayed for a period of fift en ( 15) days; 

then to become eftectiYe unles~ I, by my further order otherwise 

direct; within which time cau ·e may be shown, if any there be, 

why the above proYi ion houl l not become effec ive; and that the 

Temporary Code Authority sen l notice of the tay of these provision and of the opp rtunity to show cau e why they shoul l not 

become effective to all known employers of the Subdivision. 

HUGH . . J OHKSON 

Adm.,inistrator for l nditstrial Recovery. Approval recommended: 

A . R. GLANCY' 

Division Adm,inistrator. 

w ASHINGTON, D.C., 

J une 1B, 1.934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

Th .. White House. 

Sm: This report r late. to the Supplemental Code of Fair Competition for the Kiln, Cooler and Dryer Manufacturing Subdivision 

of Machinery and Allied Products Industry as propo ed by the 

Kiln, Cooler and Dryer Manufacturer Association. 

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

1933 and reconvened on December 21, 1933. The public hear1ngs 

were conducted in accordance ";ith the provi ions of Title I of the 

National Industrial Recovery Act and all persons were given full 

opportunity to be heard. 

GENERAL S'I'ATEMENT 

The Kiln, Cooler and Dryer Subdivi ion, being truly representative of the manufacturers of the products defined in Article II of 

the Supplemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in the second 

paragraph of Articl 0 I of the Code of Fair Competition for the 

Machinery and Allied Products Industry, approved by you on the 

eventeenth day of March, 1934. 

The Subdivision a defined in the Supplemental Code includes the 

de ign, manufacture, contracting for or subletting the manufacturing 

for the sale of Kiln ·, Coolers and Dryers. 

ECONOMIC EFFECT 

This Sub liYision has been severely affected by the recent depre sion. Thi is evidenced by the steady decline in annual sales 

since 1928. In 1932 ales were nearly 90 per cent below the 1929 

level declining from $3 421,000 in 1929, to $352,000 in 1932. The 

Subdivi ion ha estimated sale at $100,000 for 1933, which indicates 

a further decline of 71.6 per cent from the 1932 level. 

E timates of approximate employment, including office employees, 

indicate that the employment declined from 654 per-sons in 1929, to 

170 persons in 1933, or 74 per cent. 

No data are available on average hours of labor or average wage 

rates for thi Subdivision. The association claims that normal operation has always required about 48 hours per week, one shift only; 

that wages paid have always been adequate; and that no child labor 

has ever been employed. 

In absence of detailed tatistical information, no adequate analysis 

can be submitted as to the effect of the 40-hour provision in the 

Supplemental Code. 

The minimum wage provisions for the Subdivi ions which are 

operating under the Code of the Machinery and Allied Products 

Industry, are ba ed on a flat minimum hourly rate of 32 cents per 

(3) 
4 

nour for the South and the following city population differentials 

for all other sections of the United States: 

Over 50,000 population, 40 cents per hour; 10,000 to 50,000 population, 38 cents 1 er hour; 10,000 population and under, 36 cents per 

hour. 

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

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 engaged in plant operation 

shall be not 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. 

A distribution showing the number of factory workers receiving 

classified hourly rates is not available. Consequently the number of 

factory workers receiving le s than the specified minimum rates provided in the Code cannot be estimated, nor the effect which the, minimum rates will have on the payrolls of this Subdivision. 

RESUME OF SUPPLE:;\IE:KTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the 

Subdivision as used in this Supplemental Code. 

Article III provides for the adoption of the employment provisions of the National Industrial ~covery 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 Machinery 

and Allied Products Industry, in accordance with the conditions of 

this Article goYerning their a loption. 

Article V provi les for the establishment of a Code Authority and 

defines its powers and duties. 

Article VI provides for an accounting y tern and method of 

cost finding and/ or estimating. 

Article VII provides that no products of the Subdivision shall be 

sold or offered for sale belo,v a reasonable cost when the Code 

Authority d termines that an emergency exists. 

rticle VIII provides for methods of setting up revi ing and 

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

Article IX sets forth trade practices for the Subdivi ion. 

Article X. No provision of this Supplemental Code relating to 

pricing and marketing shall apply to direct export sale or to any 

product destined ultimately for export. Article XI. Thi · Suppl mental Code and all the provi ion ther of 

are expressly made ubject to the rio-ht of the Pre ident, in accordance with Sub ection (b) of Section 10 of the Act, from time to time 

to cancel or modify any order approval, license, rule or r gulation 

issued under said Act. Provi ion i al o made that modihcation 

may be submitted by the Cod Authority to the lmini trator for 

approval. 

Article XII. No provision of thi Sui plemental Code hall be so 

applied a to permit monopoli , or monopoli tic pra tice , or to 

eliminate, oppress, or di criminate against small enterpri es. 
5 

Article XIII state the effective date of this Supplemental Code. 

FINDINGS 

The As istant Deputy Admini -trator in his final report to me on 

aid Supplemental Code having found a herein set forth and on the 

ba is of all the pro eedings in thi matter: 

I find that: 

(a) Said Sup1 lernental ode i well designed to promote the 

policies an l purpo es of Title I of the National Indu trial Recovery 

Act, including remoYal of obstruction to the fre flow of inter tate 

and foreign commerce which tend to diminish the amount thereof 

and will proYide for the general welfare by promoting the organization of industry for the purpo e 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 po sible utilization of the pre ent productive capacity of indus- tries, by avoiding undue r estriction of production ( except a may 

be temporarily required), by increasing the consumption of indu -

trial and ao-ricultural 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 re pects 

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 a.ssociation truly representative of the aforesaid Subdivision; and that said association imposes 

no inequitable restrictions on admission to member hip 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 operate to di criminate 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 certain provisions relating to price publication, trade practices, and Article VIII, Section ( e), are stayed, 

as stated in the order. 

Respectfully, 

JUNE 12, 1934. 

HUGH s. JOHNSON, 

Acl1nin'i:3trator. 
SUPPLEMENTARY CODE OF FAIR CO1'1PETITION FOR 

THE KILN, COOLER AND DRYER MANUFACTURING 

INDUSTRY 

A DIVISION OF THE l\IACHINERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Indw;trial Recovery Act, the following provisions are established as a Supplemental Code of Fair Competition for the IGln, Cooler, and Dryer 

Manufacturing Subdivision of the ~1achinery and Allied Products 

Industry, and together with the Code of Fair Competition for the 

:Machinery and Allied Products Industry to which it is a Supple, 

ment shall be the standard of fair competition for this Subdivision" 

and shall be binding on each employer therein. 

ARTICLE II-DEFINITION 

'Applicant" means the IGln, Cooler, and Dryer :Manufacturers 

Association, a trade organization truly representative of this Subdivi, io.n, all members of which are engaged in the manufacture for 

sale of the products of the ICiln, Cooler, and Dryer J\iianufo.cturing 

Subdivision of the :Machinery and Allied Products Industry. 

' Industry ' means the .l\1achinery and Allied Products Industry, 

u · 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. · 

'· Subuivi. ion" means the Kiln, Cooler, and Dryer Manufacturing 

Subdivision o:f the ~1achinery and Allied Products Industry as defin ed and set forth in Paragraph ( 17) of Article II of the Code of 

Fair Competition for the J\iiachinery and Allied Product Indu try 

a · follows: 

"Kiln, Cooler, and Dryer Manufacturing Subdivision " means the 

design, manufacture, contracting for or subletting the manufacturing 

for the ale of Kilns, Coolers, an 1 Dryers and Accessory Equipment 

for the manufacture of Cement ancl Lime, and for u e in all ~1ineral, 

J\:Ietallurgical, and Chemical Proce, se , including s1 are, repair, and 

replacement parts thereof, and includes all those so engaged. 

• ode ' m ans the Co<l of Fair Competition for the Machinery 

and Allied Products Industry as approved by the President, and 

as from time to time amended. 

' Per on" means a natural per on a partnership, a corporation, 

an a sociation, a trust. a trn t e, a tru tee in bankruptcy, a rec iver, 

or other entity. 

"Employer " means any per on eno·aged in this Subdivi ·ion of the 

Industry, either on his own b half or as an employer of labor. 

(G) 
7 

"Employee" means any one who is employed in the Subdivi ion 

by any such employer. 

"The Act" means Title I of the National Industrial Recovery 

Act. 

"The President" nieans the President of the United State . "The Administrator " means the Admini::itrator for Inclu trial 

Recovery. 

" Basic Code Authority" means the Co le Authority for the Th1achinery and Allied Products Industry as constituted by the ode. 

'' Code Authority" m ans the Code Authority constituted for this 

Subdivi ion as prm ided by the Code and by this Supplemental 

Code. . "Group Code Authority" means 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-El\IPLOYM:ENT PnovisroNs 

The following Articl s of the Code, viz : Article III, ' Working 

Hour "; Article IV, " Vv ages "; and Article V, " General Labor 

Provisions , are hereby made a part of this Supplemental Code, with 

the same effect as if they were written into this S upplemental Code. 

ARTICLE IV-ADOPTION OF 0THETI 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 ma.y hereafter be 

administered as an autonomous Code; Article VIII, '' Modifications 

and Termination "; and Article IX, " ,vithdra wal '; are hereby 

made a part of this Supplemental Code with the ame effect as i£ 

they were written into this Supplemental Code. 

ARTICLE V-OnaANIZATION AND ADMINISTRATION 

To administer and supervise, and facilitate the performance of 

the provisions of this Supplemental Code, there is hereby e tublished 

a "Code Authority." 

(a) The Code Authority for this Subdivision shall consist of-

( 1) The Executive Committee of the Kiln, Cooler, and Dryer 

Manufacturers Association, consisting of not les than four and not 

more than even members. 

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

with the approval of the Administrator, by employers in this Subdivision not members of the Applicant, who are cooperating in this 

Supplemental ode, as described in Section ( e) hereof, if so desired, by such nonmembers. 

(3) The Administrator may, at his discretion appoint one additional member ( without vote and without expense to the Subdivision) . 
8 

(b) Each trade or industrial association .directly or indirectly 

participating in the selection or activities of the Code Authority 

shall (1) impose no inequitable restrictions on membershiF and (2) 

submit to the Administrator true copies of its articles of a · ociation, 

by-laws, r egulations, and any amendments when made thereto, together with such other information as to membership, organization, 

and activities as the Administrator may deem necessary to effectuate 

the purpo e of the Act. 

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

representative of the Subdivision and in other re pect comply with 

the provi ions of the Act, the Administrator n1ay provide uch hearings as he may deem proper; and thereafter if he shall find that the 

Code Authority is not tFuly representative or does not in other 

respects c01nply with the provisions of the Act, may require 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 neces ary. 

( d) Any employer in this Subdivision shall be eligible for 

membership in Kiln, Cooler, and Dryer Manufacturers Association. 

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

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 r-cvisions of, or additions or supplement. to, this 

Supplemental Code, by paying his proper 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 engaged 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 basis of one 

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

Code Authority of this Subdivision. Each employer 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 computed 

in each of the two methods hereinabove provided. 

(f) Employers in this Subdivision having a common interest 

and common problems, may be grouped by Code Authority for administrative purposes into variou Group Subdivi ions, or product 

classifications. 

In each Group Subdivision, or product cla sification, there may 

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

Authority. 

(g) If formal complaint is made to Code Authority, that provisions of this Supplemental Code have been violated by any employer, 

the Code Authority or proper Group-Code Authority, may ause 

such investigation or audit to be made, to the xtent permitted by 
9 

the Act, as may be deemed neces ary. If such inve tigation is made 

by Group-Code Authority, it shall report the results of such investigation or audit to Code Authority for action. 

Unless Basic Code Authority shall take jurisdiction, the Coue 

Authority shall have the right to inve igate to the extent permitted 

by the Act, and analyze any tran action coming under the scope 

of this Supplemental Code, on which any unfair competition is al- leo-ed, to show evidence of any violation of this Supplemental Code, 

to report any such alleged violation to the proper authorities for 

action. 

ARTICLE VI-Accou TING AN D C osTING 

The Code Authority shall cause to be formulated an ac"ounting 

sy tern and methods of co t finding and/ or e timating apable of use 

by all emplo3 ers of the Subdivision. After ,such system and methods 

have been .formulated, full detail concernjng them shall be made 

available to all employers. Thereafter nll employers shall determine 

and/ or e,stimute co. ts in accordance with the principles of such 

methods. 

ARTICLE VII-SELLING BELOW RE soN ABLE CosT 

(a) "\Vhen the Code Authority has reason to believe that an emergency exists as to any product or products of the Subdivi. ion, and 

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

ineffective or seriously endanger the puq oses or the maintenance of 

the provision of this Supplemental Code, the Code Authority may 

cause an investigation of costs and 1-,ricing to be made by an impartial 

agency in order to determine tLe exi tence of the em rgency and 

the .,ode Authority may cause to be d 0 t rmined the lowest rea ·onable 

cost of the product or products of this Subdivision, such determination to be ubj ect to such notice an 1 hearing a · the Administrator 

may require. The Admini trator may approv , disapprove, or 

modify the determination. Thereafter, during the period of emergency no employer of the Subdivision . hall sell or offer to sell any 

products of the Subdivision for which the lowe t reasonable cost 

has been determined at such prices or upon !'·uch erms or con litions 

of sale that th 0 buyer will pay le s theL·efor than the lowe t reasonable cost of such products. 

1Vhen it appears that conditions have change 1, the ode Authority, upon its own initiative or upon. th e request of any intere.sted 

party, shall ca.u..,e the determination to be revie, ed. 

RTI 'LE VIII-PmcE Lr TS 

(a) If and when the .,ode Authority of thi<:: Subdivision determines that in any branch or group of the Subdivi ion it has been 

the generally recognize 1 practice to ell a spe ified product on the 

basi of net price lists or price li t. "ith discount heet , and fixed 

terms of ale and l ayment, each empl yer hall, within ten (10) 

days after notice of such d termination, file with the Code Authority 
10 

a net price Ii t, or a price list and di count sheet, as the ca e may be, 

individually prepared by him, i5howing his current prices, or prices 

an l <lisconnts, and term of ,. ale and payment for such specified 

product, and the Code Authority shall immediately publi h and 

send copies thereof to all known employers who are cooperating 

in thi u pplement~tl Co<le a de cribed in Section ( e) of Article 

V hereof. 

Revised price li t · and/ or di count sheets and/or t rm· of ale and 

payment for uch product may be filed from time to time thereafter 

with the Co le Authority by any employer, but such revised price 

lists and / or di count heet and/ or term of sale and payment shall 

be filed with the Code Authority ten (10) days in a lvance of the 

effective date. Copies of such revi ed price li ts an 1/ or discount 

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

notice of the effective date specified, shall be imme<liately publishe<l 

and ent to all knmvn employer 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 

vi,hen the revised price list and/ or discount sheet and/ or term of sale 

and payment fir t filed hall go into effect, revisions of his price Ii ts 

and/ or discount beets and/ or terms of sale and payment e tubli hing 

prices or prices and discounts not lower or terms of sale and payment 

not more :favorable than those established in the r vi ed price li ~ts 

and/ or discount sheets and/ or terms of sale and payment fir t filed. 

Nothing in the :foregoing shall constitute a limitation upon the right 

of any employer to file revi ed lists fixing his own prices, di count 

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

either more or less :favorable than those contained in any other price 

list, to be effective a provided in the first sentence of this paran-raph.1 

(b) If L.nd when the Code Authority shall determine that in any 

branch or group of the Snbdivi ion not now selling it product on the 

ha i of price lists, with or without discount sheets, with fixed term 

of ale and payment, the distribution or marketing conditions in said 

branch or group are the , ame as or similar to, the dj tribution or 

marketing conditions in a branch or group of the Subdivi ion where 

the use of price list , with or without discount sheet and fixe l term 

of sale and payment, is well recognized, and that a sy tem of . elling 

on net price lits or price lists and discount heet with fixed term 

of sale and payment for uch product should be put into effect in uch 

branch or group, then each employer of such branch or group shall 

within ten ( 10) days after notice of such determination, file , ith the 

Code Authority net price lists or price li ts and discount heets 

containing fixed wrm of sale and payment, hawing hi. urrent 

prices and discounts and terms of ale and payment and uch price 

li ts and/ or di count heet and/ 01· terms of , ale and payment ma. 

be thereafter revi eel in the manner hereinabove provid d; provided, 

however, that the Code Authority hall make no determjnation to 

place any product of the Subdivi ion (not now on a price li t ba i ) 

on a price list ba i a provided in thi paragraph (b) of Arti le 

VIII unle · the employers who are at that time engaged in manu1 See paragraph 2 (1) of order approving this ode. 
11 

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

have given their affirmative consent to such determination. The 

eligibilit_y requirem nts, method, and effect of uch voting shall be 

the same as provided in Se tion ( e) of Article V. 

Ea h employer shall prepare and shall furnish the Code Authority for distribution with su h number of copies of his price lists 

and/or discount sheets und terms of sale and payment as Code 

Authority may prescrib . 

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

whatsoever, any product of the Subdivi ion covered by provi ions 

of 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 li ts, or price lists and discount 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, engineerino-, 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 risk , or 

other similar special charges, he shall not subsequentJy 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 

con ·umer secures a discount, allowance or price other than the 

discount, allowance or price provided for in the employer's own 

current net price li ts or price lists with discount sheets. 

o 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) ,Vherever by the provisions of this Article VIII an employer 

is or may be required to or permitted to file term of sale and 

payment, such terms shall mean usual or standard terms, and to 

cover any special and/or unu ual terms definite formulae for determining such special and/or unusual terms shall be fil ed. (f) If and when Code Authority shall determine that it i undesirable to continue the filing of net price lists un l/or price lists 

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

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

such filing shall cea e and the provisions of this Article hall not 

apply to such product unless and until Code Authority shall again 

determine that uch filing be made. 

2 cc paragraph 2 (2) of order approving tbi · Code. 
12 

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; and each 

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

method of com1 etition, viz: 

1. The ecret offering or makina to any customer, aacnt, fi luciary, 

or repre entative of customer, of any payment or allowan e of a. 

rebate, refund, commission credit, credit sub idy, unearned di ·count, 

or excess allowance, whether in the form of money or oth rwi e or 

any special serYice or privilege, for the purpo~e 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 bu iness of the employer o-f 

such employee or the principal of such agent without the knowledge 

of such employer or principal, provided that no provision of this 

Code shall be construed to prohibit free and general distribution 

of articles commonly u eel for advertising, except so far a uch 

articles are actually used for commercial bribery a hereinabovc 

defined. 

2. Any discrimination between purchasers, by the sale of any 

article ha, ing a published price, _at any price other than the seller'. 

published price, by means of direct or indirect price conce · ions, 

or by mean of any privilege not extended to purcha ers generally. 

3. Untruthfully advertising, repre enting, or marking any 

product, with intent to decei, e or mislead. 

4. The publi hing 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, howe, er that this 

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

within six months of the date of shipment, to the V nclor and the 

allowance of any fair adjustment thereon by the Vendor of any 

product which shall not meet the purposes for which it wa old. 

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

said equipment, but hall in no ca e take any financial intere t in it. 

6. So long as the maker of any product of this Subdivi ion bearing the maker's name or trademark, which has required pecial 

<l.e igning, research or development expen e ( or hi succe or in 

business) continues to make and supply such spare, repair, an l replacement parts therefor, supplying repair parts for uch product 

of this Subdivision unless (a) the name of the maker of such copied 

non-genuine repair parts shall be plainly marked on each part ( or 

if this is impracticable on the package or tag) so that th ultimate 

user is clearly informed by such marking on parts packag tags 

and in catalogues price lists, quoted prices, adverti ement or adver-

• See pa ragraph 2 (3) of order approving this Code. 
13 

tising literature of the manufacturers of such copied non-genuine 

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

products of the employers of this Subdivision. 

7. The furnishinO' to any purchaser, and/ or his ag 0 nt, directly or 

indirectly of detailed shop drawings of the products of this Subdivision "ithout filing a statement of such proposed transaction with 

the Code Authority which niay approve or with the ap1:roval of the 

Admini trator di approve the transaction within ten (10) days by 

written notice to the employer. 

8. Disseminating £al e or 1nisleading information relative to competitor's products, selling prices, reputation, credit or financial 

;:,tanding, ability to perform work, or labor conditions. 

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

contract covering the purchase or sale of the products of this Subdivision; provided, ho-weYer, that nothing in this Section shall be 

construed to prohibit the attempt on the part of the O\\'ner of or 

licensee under any patent to induce a purchaser or 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 Fon ExrORT 

The provisions of this Supplemental Code concerning pricing and 

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

export sales 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 shipment 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 nn 

export when any employer is engaged in t he industry in uch 

territory or possession. 

ARTICLE XI-1\'.IonrFIL-\no~s 

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

from time to time cancel or modify any order, approval, licen e, rule 

or regulation issued under Title I of the Act. 

(b) Study of the trade practices of this Subdivision will be continued by Code Authority, with the intention of submitting fr01n 

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

revi ions of, or supplements to, this Supplemental Code. 

Any such amendments, additions, revisions, or supplement , proposed by Code Authority, and approved by a Yote of the employers 

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

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

be the same as provided in Section ( e) of Article V. 
14 11111111111\1\1l~1i1~11i1'1\ ll11 ll1i111\1\11\1\1 '1i1i1111111111 

3 1262 08852 5737 

ARTICLE XII-MONOPOLIES 

The ~upplem€ntal Code presented by Applicant is not designed 

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

oppress or eliminate small enterprises or discriminate against them, 

and is designed to effectuate the policy of the Act. 

ARTICLE XIII-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

persons engaged in thi Subdivision on the eleventh day after its 

approval by the President. 

Approved Code No. 347-Snpplement No. 21. 

Registry No. 1399-50. 

0