)/ Approved Code No. 84 — Appendix No. 3 Registry No. 1629—07 NATIONAL RECOVERY ADMINISTRATION CODE APPENDIX FOR THE FIREPLACE FURNISHINGS MANUFACTURING INDUSTRY (A Subdivision of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON DECEMBER 21, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1934 For sale by the Superintendent of Documents, Washington, D. C. -.--.... Price 5 cents 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. T. : Chamber of Commerce Building. Charleston, S. C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. 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Approved Code No. 84 — Appendix No. 3 CODE APPENDIX FOR THE FIREPLACE FURNISHINGS MANUFACTURING INDUSTRY As Approved on December 21, 1934 ORDER Approving Appendix for the Fireplace Furnishings Manufactur- ing Industry a subdivision of the fabricated metal products manufacturing and metal finishing and metal coating 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, and in accordance with the provisions of Section 4 of Article IV of the Code of Fair Competi- tion for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, as amended, for approval of an Appendix establishing trade prac- tice provisions for the Fireplace Furnishings Manufacturing Sub- division of said Industry, and Notice of Opportunity to be Heard having been given to all interested parties, and objections received thereon having been satisfied, and the annexed report on said Ap- pendix to said 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, the National Industrial Recovery Board, pursuant to au- thority vested in it by Executive Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise; does hereby incorporate by reference said annexed report and does find that said Appendix to said Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and does hereby order that said Appendix of said Code of Fair Competition be and it is hereby approved. National Industrial Recovery Board, By W. A. Harriman, Administrative Officer. Approval recommended : Kilbourne Johnston, Acting Division Administrator. Washington, D. C, December 21, 1934. 104200° 1385-121 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on an Appendix to the Code of Fair Com- petition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved on November 2, 1933, and as amended on June 1, 1934. GENERAL, STATEMENT The Fireplace Furnishings Manufacturing Industry, being truly representative of this Subdivision of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of operating under the Code for the Fabricated Metal Products Manufacturing and Metal Finish- ing and Metal Coating Industry, as amended on June 1, 1931, with the assistance of additional fair trade practice provisions. RESUME OF THE APPENDIX Paragraph A, Definition, accurately defines the term " Fireplace Furnishings Manufacturing Subdivision." Paragraph B, Governing Body, sets up a governing body consist- ing of members of the Subdivision to be known as the Subdivisional Committee for the Fireplace Furnishings Manufacturing Subdivision. Paragraph C, Effective Date, prescribes the effective date of the Appendix. Paragraph 4 makes the violation of any of the trade practices in this Appendix also a violation of the Code. Section 1 provides for the formulation of a cost accounting system. Section 2 provides for open price filing. Section 3 provides against any member of the Subdivision from wilfully inducing or attempting to induce the breach of existing contracts between competitors and their customers. Section 4 provides against selling on consignment except where peculiar circumstances require the practice. Section 5 provides against the sale of goods other than F. O. B. factory except where peculiar circumstances require the practice. Section 6 prohibits the sale of samples. Section 7 provides for the formulation of maximum discounts and terms of sale. Section 8 provides that the Subdivisional Committee may establish classifications and quality standards for products of the Industry. Section 9 prohibits the copying of any unique style or design ap- plied to a product of the Subdivision. Section 10 provides that the provision of the Appendix shall not apply to export trade. (2) FINDINGS The Acting Deputy Administrator in his final report to the Board on said Appendix to said Code having found as herein set forth and on the basis of all the proceedings in this matter : It has been found that : (a) Said Appendix to said Code is well 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 organiza- tion of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be tem- porarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reduc- ing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said industry normally employs not more than 50,000 em- ployees ; and is not classified by me as a major industry. (c) The Appendix to said Code as approved complies in all re- spects with the pertinent provisions of said Title of said Act, includ- ing 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 association truly representative of the aforesaid Industry; and that said association imposes no inequi- table restrictions on admission to membership therein. (d) The Appendix to said Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Appendix to said Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Appendix to said Code. For these reasons, therefore, this Appendix of said Code has been approved. For the National Industrial Recovery Board : W. A. Harriman, Administrative Officer. December 21, 1934. CODE APPENDIX FOR THE FIREPLACE FURNISHINGS MANUFACTURING INDUSTRY A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY _ Pursuant to Section 4 of Article IV of the Code of Fair Competi- tion of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, as amended, (the terms of which apply to each member of the Fireplace Furnishings Manufac- turing Subdivision) the following provisions are established as an Appendix to said Code of Fair Competition of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry for the Fireplace Furnishings Manufacturing Subdivision of that Industry. A. Definition. — The term " Fireplace Furnishings Manufacturing " means the manufacture and/or assembly for sale of fireplace furnish- ings, including such items as andirons, fireplace grates and baskets, fireplace tools, screens and items for the adornment of the fireplace made in whole or in substantial part of metal, and parts thereof, other than gray iron castings when manufactured and sold as such. B. Sub divisional Committee.— The members of the subdivision shall set up a subdivisional committee for the Fireplace Furnishings Manufacturing Subdivision, hereafter referred to as the " Subdivi- sional Committee ", consisting of as many members as may be de- termined by and in a manner satisfactory to the Basic Code Au- thority and the National Industrial Recovery Board. The National Industrial Recovery Board may appoint a member of the Subdivi- sional Committee who shall be given reasonable notice of and may sit at all meetings of the Subdivisional Committee but who shall be without vote and shall serve without expense to the subdivision. C. Effective date. — This Appendix shall become effective ten (10) days after its approval by the National Industrial Recovery Board. TRADE PRACTICES Any member of the subdivision who directly or indirectly through any officer, employee, agent or representative violates or evades any of the following trade practices provisions shall be guilty of viola- tion of this Code. Section 1 (a) Cost Finding. — The Subdivisional committee shall cause to be formulated methods of cost finding and accounting capa- ble of use by all members of the subdivision, and shall submit such methods to the National Recovery Board, full information concern- ing such methods shall be made available to all members of the sub- division. Thereafter, each member of the subdivision shall utilize such methods to the extent found practicable. Nothing herein con- tained shall be construed to permit the subdivisional committee, any (4) agent thereof, or any member of the subdivision to suggest uniform additions, percentages or differentials or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or prices. (b) The principles of accounting and costing as approved and set up under this section shall not be used by the subdivisional committee or the Basic Code Authority in the Administration of the provisions of Article V, Section A of the Basic Code. Section 2. Open Price Filing. — (a) Each member of the subdi- vision shall file with a confidential and disinterested agent of the subdivisional committee or, if none, then with such agent desig- nated by the National Industrial Recovery Board, identified lists of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale, hereinafter in this article referred to as " price terms ", which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard products of the subdivision as are sold or offered for sale by said member and for such non-standard products of said member as shall be designated by the subdivisional committee. Said price terms shall in the first instance be filed within twenty (20) days after the date of approval of this provision. Price terms and revised price terms shall become effective immediately upon receipt thereof by said agent. Immediately upon receipt thereof, said agent shall by tele- graph or other equal prompt means notify said member of the time of such receipt. Such lists and revisions together with the effective time thereof shall upon receipt be immediately and simultaneously distributed to all members of the subdivision and to all of their cus- tomers who have applied therefor and have offered to defray the cost actually incurred by the subdivisional committee in the prepara- tion and distribution thereof and be available to inspection by any of their customers at the office of such agent. Said lists or re- visions or any part thereof shall not be made available to any per- sons until released to all members of the subdivision and their customers, as aforesaid; provided, that prices filed in the first in- stance shall not be released until the expiration of the aforesaid twenty (20) day period after the approval of this Appendix. The subdivisional committee shall maintain a permanent file of all price terms filed as herein provided, and shall not destroy any part of such records except upon written consent of the National Industrial Recovery Board. Upon request the subdivisional committee shall furnish to the National Industrial Recovery Board or any duly designated agent of the National Industrial Recovery Board copies of any such lists or revisions of price terms. (b) When any member of the subdivision has filed any revision, such member shall not file a higher price within forty-eight (48) hours. (c) No member of the subdivision shall sell or offer to sell any products of the subdivision, for which price terms have been filed pursuant to the foregoing provisions, except in accordance with such price terms. -(d) No member of the subdivision shall enter into any agreement, understanding, combination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any member of the subdivi- sion to change his price terms by the use of intimidation, coercion, or any other influence inconsistent with the maintenance of the free and open market which it is the purpose of this provision to create. Section 3. Inducing Breach of Contract. — No member of the sub- division shall knowingly attempt to induce the breach of any con- tract between a competitor and his customer or source of supply; nor shall any such member knowingly interfere with or obstruct the performance of such contractual duties or services. Section 4. Selling on Consignment. — No member of the subdi- vision shall ship goods on consignment except where peculiar cir- cumstances in the subdivision require the practice and then only under circumstances to be defined by the subdivisional committee and approved by the National Industrial Recovery Board. Section 5. Freight Allowances. — No member of the subdivision shall sell goods in any manner except F. O. B. factory, except where peculiar circumstances in the subdivision require the practice and then only under circumstances to be defined by the governing body and approved by the National Industrial Recovery Board. Section 6. Sale of Samples. — No member of the subdivision shall sell display or salesmen's exhibition samples at a price or terms other than those set forth in his price terms. No exceptions to this provision shall be allowed except where peculiar circumstances in the subdivision require an exception and then only under circum- stances to be defined by the subdivisional committee and approved by the National Industrial Recovery Board. Section 7. Terms. — No member of the subdivision shall grant terms of payment on sales more favorable than net cash thirty (30) days, or if discount is allowed such discount shall not be in excess of two (2%) percent for payment in ten (10) days. Provided, however, that stock orders placed for fall requirements sold and shipped prior to September 1, may carry October 1 dating with terms of two (2%) percent, October 10, net thirty (30) days. An anticipatory discount of not to exceed one-half of one (^2%) percent per month may be allowed. Section 8. Standardization of Products. — (a) The subdivisional committee may within six (6) months after the effective date make studies for the establishment of classifications, dimensional and qual- ity standards for the products of this subdivision in cooperation with some Federal Government Agency, preferably the Bureau of Stand- ards of the United States Department of Commerce, with a view to their recommendation for adoption by this subdivision. Such stand- ards when approved by a majority vote of this subdivision and approved by the National Industrial Recovery Board shall become the standards of this subdivision within ninety (90) days and there- after the subdivision shall follow such standards. Failure to follow such standards set up by the subdivisional committee, so approved by the members of the subdivision and approved by the National Indus- trial Recovery Board shall be an unfair method of competition and a. violation of this Appendix. Provided, however, that exceptions from such standards may be applied for by a formal petition to the sub- divisional committee, whose decision must be rendered within sixty (60) days after the receipt of such petition and if favorable to the petitioner shall become final when such decision is ratified by a majority vote of the members of the subdivision and is approved by the National Industrial Recovery Board. Section 9. Deception of Purchasers by Simulatio?i of Another's products. — No member of the subdivision shall copy or knowingly simulate any unique style or design applied to a product of the sub- division manufactured by another member thereof where the prob- ably and actual effect is that purchasers or prospective purchasers will mistake the products of the former for those of the latter member. Section 10. Export Trade. — No provision of this Appendix relat- ing to prices or terms of selling, shipping, or marketing, shall apply to export trade or sales on shipments for export trade. "Export Trade ", as used herein, is defined to mean export trade as it is used in the Export Trade Act of 1918. Approved Code No. 84 — Appendix No. 3. Registry No. 1629-07. o Digitized by the Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/codeappendixforf5077unit UNIVERSITY OF FLORIDA 3 1262 08850 5077