/ 
 
 Approved Code No. 347 — Supplement No. 25 
 
 Registry No. 1399—63 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 SUPPLEMENTARY 
 CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 POWER TRANSMISSION 
 INDUSTRY 
 
 (A Division of the Machinery and Allied Products Industry) 
 AS APPROVED ON JULY 6, 1934 
 
 \fi DO OUR PARf 
 
 UNiV. OF FLU8. 
 
 iQCUMIMmJ££fI 
 
 i.», 
 
 U.». DEPOmiORY 
 
 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. : ISOl Customhouse. 
 Buffalo, N.Y. : Chamber of Commerce Building. 
 Charleston, S.C. : Cliauiber of Commerce Building. 
 Chicago, 111.: Suite 17U6, 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 Po.st 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. 25 
 SUPPLEMENTARY CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 POWER TRANSMISSION INDUSTRY 
 As Approved on July 6, 1934 
 
 ORDER 
 
 Supplemental Code or Fair Competition for the Power Trans- 
 mission 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 Supple- 
 mental Code of Fair Competition for the Power Transmission Sub- 
 division 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 t^ 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 Presi- 
 dent, including Executive .Order No. 6r)4:3-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 condition : 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 re^dsed price lists or 
 revised terms and conditions of sale, be and they hereby are stayed 
 pending my further order. 
 
 Hugh S. Johnson, 
 Administrator for Industi'iol Recovery. 
 
 Approval recommended: 
 Barton W. Murray, 
 
 Division Administrator, 
 
 Washington, D.C, 
 
 July 6, 193^, 
 
 72438' 829-30 34 (1) 
 
REPORT TO THE PRESIDENT 
 
 The President, 
 
 The White House. 
 Sir: This is a report on the Supplementary Code of Fair Com- 
 petition for the Power Transmission Subdivision of Machinery and 
 Allied Products Industry, a Public Hearing on which was held in 
 Washington, D.C., on December 21, 1933. The Hearing was con- 
 ducted in full accordance with the provisions of Title I of the 
 National Industrial Recovery Act. 
 
 GENERAL STATEMENT 
 
 The Power Transmission Subdivision being truly representative of 
 the manufacturers of the products defined m Article II of the Sup- 
 plemental Code, has 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 Products Industrv, approved by you on the seventeenth day 
 of March, 1934. 
 
 The Power Transmission Subdivision means the manufacture for 
 the sale of flat belt puller's, rope sheaves, couplings, collars, hangers, 
 pillow blocks, journal boxes, clutches ancl other incidental machinery 
 and appliances used in the transmission of power, but exclusive of 
 shafting, multiple V-belt drives, belting, cut gears, cut tooth and 
 cast tooth sprockets, chains, speed reducers, and automotive parts, 
 and parts thereof, and includes all those engaged in such manufac- 
 ture for sale. Emplo3'ers otherwise engaged in the Farm Equip- 
 ment Industry may manufacture for sale and sell power takeoff 
 equipment used in connection with tractors and gear reduction 
 devices for power takeoff for farming machinery, under the pro- 
 visions of the Code of the Farm Equipment Industry and not under 
 the provisions of this Code. 
 
 ECONOMIC EFFECT 
 
 This Subdivision has be^n severely affected by the recent depres- 
 sion. This is evidenced by the steady decline in annual sales after 
 1929 from $11,560,000 to $2,868,000 in 1933, or 75 per cent. Invested 
 capital and production capacity have declined 21 per cent and 7 
 per cent respectively since 1929, 
 
 In 1929 the Subdivision eDiplo3'ed approximately 2.287 factory 
 workers, which total declined to 958 in the second quarter of 1933 or 
 58 percent. Since then emploj^mcnt increased to 1,171 workers as of 
 November 15, 1933. 
 
 Estimated man hours per week declined from 108,175 in 1929 to a 
 minimum of 31,355 in June, 1933, or 71 percent, and increased there- 
 after to 36,420 in November, 1933. 
 
 (2) 
 
Average weekly earnings declined from $27.58 in 1929 to a mini- 
 mum of $10.G9 in the first quarter of 1933. Since then weekly earn- 
 ings increased to $16.72 as of November 15, 1933. 
 
 Based on the distribution as of June 15, 1933 and the specified 
 percentages of the number of wage earners receiving less than the 
 designated rates the adoption of the proposed minimum hourly rates 
 will cause an increase in hourly factory pay rolls of this Industry. 
 
 The wage provisions for the Subdivision, which is operating under 
 the Code of the Machinery and Allied Products Inclustry, provide 
 that employees engaged in plant operations shall be paid as follows : 
 (1) in cities of more than 50,000 population and their immediate 
 vicinity, 40 cents per hour; (2) in cities of more than 10,(X)0 but not 
 more than 50,000 population and their immediate vicinity, which 
 cities are not in the immediate vicinity of a city of more than 50,000 
 population, 38 cents per hour; (3) in cities of 10,000 population or 
 less and their immediate vicinity, which cities are not in the imme- 
 diate vicinity of a city of more than 10,000 population, 36 cents per 
 hour, except that employees engaged in plant o])erations in all locali- 
 ties in the states of Virginia, North Carolina, South Carolina, 
 Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, Louisi- 
 ana, Texas, and Oklahoma, shall be paid not less tlian 32 cents per 
 hour. 
 
 When females do substantially the same work as males or replace 
 males, they shall receive the same pay. However, no female em- 
 ployee shall be i^aid less than 87%% of the proper rate for the 
 locality in which employed. 
 
 Office boys and girls and apprentices shall be paid not less than 
 80% of the minimum wage. 
 
 Employees other than those engaged in plant operations shall re- 
 ceive not less than $15.00 per week. 
 
 This Supplemental Code provides that no person under sixteen 
 years of age shall be employed in this Subdivision. 
 
 RESUME OF SUPPLEMENTAL. CODE 
 
 Article I states the purpose of the Supplemental Code. 
 
 Article II accurately defines specific terms applicable to the Sub- 
 division as used in this Supplemental Code. 
 
 Article III provides for the adoption of the employment provisions 
 of the Code of Fair Competition for 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 Code of Fair Competition for the Machinery and Allied 
 Products Industry in accordance with the conditions of this Article 
 governing their adoption. 
 
 Article V provides for the establishment of the Code Authority 
 and defines its powers and duties. 
 
 Article VI provides for an accounting system and methods of cost 
 finding and/or estimating. 
 
 Article VII provides that no products shall be sold or exchanged 
 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 establishes that no provision of this Sui^plemental Code 
 relating to pricing and marketing shall apply to direct export sales 
 or to any product destined ultimately for export. 
 
 Article XI. This Supplemental Code and all the provisions thereof 
 are expressly made subject to the right of the President in accordance 
 with subsection (b) of Section 10 of the Act, from time to time to 
 cancel or modify any order, approval, license, rule or regulation 
 issued under said Act. Provision is also made that modifications 
 may be submitted by the Code Authority. 
 
 Article XII provides means for withdrawal of this Subdivision 
 from the Basic Code and its continuance as an autonomous Code. 
 
 Article XIII establishes that no provision of this Supplemental 
 Code shall be so applied as to permit monopolies or monopolistic 
 practices or to eliminate, oppress, or discriminate against small 
 enterprises. 
 
 Article XIV states the effective date of this Supplemental Code. 
 
 FINDINGS 
 
 The Assistant Deputy Administrator in his final report to me on 
 said Supplemental Code having found as herein set forth and on 
 the basis of all the proceedings in this matter : 
 
 I find that : 
 
 (a) Said Supjilemental 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 super- 
 vision, by elmiinating unfair competitive practices, by promoting 
 the fulles-t possible utilization of the present productive capacity of 
 industries, by avoiding undue restriction of production (except as 
 may be temporarily required), by increasing the consumption of 
 industrial and agricultural products through increasing purchasing 
 power, by reducing and relieving unemployment, by improving 
 standards of labor, and by otherwise rehabilitating industry. 
 
 (b) Said 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 provision^ 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 Subdivision ; and that said association imposes no 
 inequitable restrictions on admission to membershp therein, 
 
 (d) The Supplemental Code is not designed to and will not per- 
 mit monopolies or monopolistic practices. 
 
(e) The Supplemental Code is not designed to and will not elimi- 
 nate or oppress small enterprises and ■svill not operate to discriminate 
 against them. 
 
 (f) Those engaged in other steps of the economic process have 
 not been deprived of the right to be heard prior to ajDproval of said 
 Supplemental Code. 
 
 For these reasons, therefore, I have approved this Supplemental 
 Code, provided that certain provisions relating to price publication 
 are stayed, as stated in the Order, 
 iiespectfully, 
 
 Hugh S. Johnson, 
 
 Administrator. 
 July 6, 1934. 
 
SUPPLEMENTAEY CODE OF FAIR COMPETITION FOR 
 POWER TRANSMISSION INDUSTRY 
 
 A DIVISION OF THE MACHINERY AND ALLIED PRODHCTS INDUSTRY 
 
 Article I — Purposes 
 
 To effectuate the policy of Title I of the National Industrial Re- 
 covery Act, the following provisions are established as a Supple- 
 mental Code of Fair Competition for the Power Transmission Sub- 
 division of the Machinery and Allied Products Industry, and, 
 .together with the Code of Fair Competition for the Machinery and 
 Allied Products Industry, shall be the standard of fair competition 
 for this Subdivision, and shall be binding on e-ach employer therein. 
 
 Article II — Definitions 
 
 ''^Applicant " means the Power Transmission Association, a trade 
 organization, all members of which are engaged in the manufacture 
 and sale of the products of the Power Transmission Subdivision of 
 Machinery and Allied Products Industry. 
 
 •• Industinj " means the INIachinery and Allied Products Industry, 
 as defined in its Code of Fair Competition as approved by the 
 President, and as such definition maj^ from time to time be amended. 
 
 "• Subdivision '' means the Power Transmission Subdivision of the 
 Machinery and Allied Products Industry as defined and set forth 
 in paragraph 21, Article II of the Code of Fair Competition for 
 the Machinery and Allied Products Industry, as follows : 
 
 " Power Transmission Subdivision means the manufacture for 
 sale of flat belt pulleys, rope sheaves, couplings, collars, hangers, 
 pillow blocks, journal boxes, clutches, and other incidental ma- 
 chinery and appliances used in the transmission of power, but 
 exclusive of shafting, multiple V-belt drives, belting, cut gears, cut- 
 tooth and cast-tooth sprockets, chains, speed reducers, and auto- 
 motive parts, and parts thereof, and includes all those engaged in 
 such manufacture for sale. 
 
 " Employers otherwise engaged in the Farm Equipment Industry 
 may manufacture for sale and sell power take-off equipment used 
 in connection with tractors and gear reduction devices for power 
 take-off for farming machinery, under the provisions of the Code 
 of the Farm Equipment Industrv and not under the provisions of 
 this Code." 
 
 '' Code ■- means the Code of Fair Competition for the Machinery 
 and Allied Products Industry, as approved b}' the President, INIarch 
 17, 1934, 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. 
 
 (6) 
 
" Employe}' " means any person enfyaged in this Subdivision of 
 the Industry, either on his own behalf or as an empk>yer of Labor. 
 
 " Employee " means any one who is employed in this Subdivision 
 by any such employer. 
 
 " The Act " means Title I of the National Industrial Recovery 
 Act. 
 
 " The President " means the President of the United States. 
 
 " Admim^trator " means the Administrator for Industrial Recov- 
 ery. 
 
 '■'' Bas'W Code Attthority '''' means the Code Authority for the Ma- 
 chinery and Allied Products Industry as constituted by the Code. 
 
 " Code Authority " means the Code Authority constituted for this 
 Subdivision as provided by the Code and by this Sup])lemental Code. 
 
 " Group Code Authority " means the Code Authority for any 
 Group or product classification within this Subdivision, constituted 
 under the authority of Article V of this Supplemental Code. 
 
 " Method of Prieing " means net price lists and terms of sale and 
 payment, or price lists w^ith discount sheets and terms of sale and 
 payment. 
 
 " Publish " means to make available to all interested parties. 
 
 Article III — Employment PR0^^SI0N8 
 
 The following Articles of the Code, viz : Article III, " Working 
 Hours " ; Article IV, " Wages " ; 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 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 wdll be appli- 
 cable to this Supplemental Code as such or as it may hereafter be 
 administered as an autonomous Code ; and Article VIII, " Modifi- 
 cations and Terminations ", are hereby adopted and make a part of 
 this Supplemental Code, with the same effect as if they were written 
 into this Supplemental Code. 
 
 Article V — Administration 
 
 During the period not to exceed sixty days, following the effective 
 date of this Supplemental Code, the code committee of the Applicant 
 shall constitute a temporary Code Authority. This committee shall 
 consist of not less than 3 and not more than 8 members, and the Ad- 
 ministrator, in his discretion, may appoint one additional member 
 (without vote and without expense to this Subdivision). 
 
 (a) To permit representation of employers wdio are not members of 
 Applicant, the Applicant shall, within sixty days after this Supple- 
 mental Code becomes effective, set up a permanent Code Authority 
 to succeed the temporary Code Authority to administer and supervise 
 and to facilitate the enforcement of this Supplemental Code. 
 
8 
 
 (b) This Subdivision, having held an election for permanent 
 Code Authority under the provisions of the Code of Fair Compe- 
 tition for the iMachinerv and Allied Products Industry, the Code 
 Authority so elected shall constitute the first permanent Code Au- 
 thority for this Subdivision if this method of election meets with 
 the approval of the Administrator. If this method of election 
 does not meet with the approval of the Administrator, then the 
 provisions hereinbelow provided shall apply for the election of the 
 first permanent Code Authority. For elections after the first, the 
 provisions of this Supplemental Code for election of a permanent 
 Code Authority shall apply. 
 
 (e) If the permanent Code Authority above mentioned is not 
 approved, the permanent Code Authority shall be elected at a 
 meetin<j called for this purpose, to which all known employers in 
 this Subdivision shall be invited by letter sent by registered mail, 
 with the right to vote either in person or by proxy. This perma- 
 nent Code Authority shall consist of not less than 5 and not more 
 than 9 members, and, in addition thereto, the representative of the 
 Administrator as referred to in the paragraph above. Of the elec- 
 tive members of permanent Code Authority, one member may be 
 chosen by the employers (if any) who are not members of the Ap- 
 plicant, provided such representation shall be desired by such em- 
 ployers. In the election of the remaining members of permanent 
 Code Authority, each member of the Applicant shall have one vote, 
 and a majority vote of members of the Applicant shall elect. Mem- 
 ber's of the permanent Code Authority so elected shall hold office 
 for terms provided for in the permanent Code Authority Consti- 
 tution and By-Laws. 
 
 Any employer in this Subdivision shall be entitled to vote at the 
 election of, and share in the benefits of, the Code Authority, and par- 
 ticipate in any endeavors of the Code Authority in the preparation 
 of any revisions of, or additions or supplements to, this Supplemen- 
 tal Code, by paying his proper pro rata share of the reasonable cost 
 of administering it, as determined by the Code Authority. 
 
 Assessments for defraying the expense of administering the Code, 
 as determined by the Code Authority, shall be pro rated among 
 employers at such times and in such amounts as may be determinecl 
 by a majority vote of the employers entitled to vote; such assessments 
 to be pro rated upon the basis of gross sales of the products of the 
 Subdivision, f.o.b. cars at point of manufacture, for the preceding 
 calendar j'ear. 
 
 For the purpose of computing such assessments, each employer 
 shall submit, upon request of the Code Authority, an accurate state- 
 ment covering the sales made during the above stated period. 
 
 The Code Authority shall have no activities not related to the pro- 
 visions of this Supplemental Code or the Code. Any employer in the 
 Subdivision shall be eligible for membership in the Applicant Asso- 
 ciation. 
 
 In order that the Code Authority shall, at all times, be truly rep- 
 resentative of the Subdivision and in other respects comply with the 
 provisions of the Act, the Administrator may prescribe such hearings 
 as he may deem proper; and, thereafter, if he shall find that the 
 Code Authority is not truly representative or docs not in other 
 
9 
 
 respects comply with the provisions of the Act, may require an 
 appropriate modification in the method of selection of the Code 
 Authority. 
 
 (d) For the purpose of administering and facilitating the enforce- 
 ment of the provisions of this Supplemental Code, Code Authority, 
 by its duly authorized rej^resentatives (who shall not be an em- 
 ployer or in the employ of any employer affected by this Sup- 
 plemental Code), shall have access to any and all statistics, data 
 and information filed in accordance with the provisions of the 
 Code and this Supplemental Code. All individual statistics, data 
 and information of individual employers, as filed in accordance with 
 the provisions of the Code and this Supplemental Code, shall be 
 kept confidential, except with the consent of such employer pertain- 
 ing to his own statistics, and providing that nothing herein shall 
 prevent publication of general summaries of such statistics of this 
 Subdivision. 
 
 (e) For administrative purposes, employers maj^ be grouped by 
 Code Authority to bring into working association employers having 
 common interests and problems that are not common to all em- 
 ployers. Each such group shall designate from among its members a 
 Group Code Authority, and ma}'^ adopt such rules for the conduct of 
 the business of the Group as are not inconsistent with the provisions 
 of this Supplemental Code and the Code; provided, however, that 
 provisions of this Article V shall control the making of all exami- 
 nations or audits and the use to be made of information so obtained 
 with respect to any employer. 
 
 (f ) Except as otherwise provided in this Supplemental Code, the 
 Code Authority or a Group Code Authority shall have power to 
 hear all matters pertaining to the provisions of this Supplemental 
 Code which may be submitted to it by any employer in its Group, 
 having relation to the emploj^ers in said Group, or any of them, and 
 to that end, to the extent permitted by the Act, may investigate and 
 ascertain the facts through such examination or audit as such Group 
 Code Authority may deem necessary. All matters pertaining to a 
 particular group shall be referred in the first instance to the Group 
 Code Authority for that Group, if any has been established. 
 
 Any decision of the Group Code Authority shall be final unless 
 appeal is taken to the Code Authority or such decision involves mat- 
 ters requiring to be reported to the Code Authority, in which case 
 pertinent information, papers and data in the possession of the 
 Group Code Authority shall be turned over by it to the Code Au- 
 thority, and the Code Authority shall pass on the merits of the 
 case and make final decision or report thereon to the Basic Code 
 Authority or the Administrator. 
 
 (g) The Code Authority or a Group Code Authority may act, 
 within its powers, on the affirmative vote of a majority of its elected 
 members; provided that any proposal receiving less than a majority 
 vote shall be submitted, upon the request of any member of the Code 
 Authority or Group Code Authority having jurisdiction, to a vote 
 of all employers entitled to vote under this Supplemental Code or of 
 all the employers entitled to vote comprising the Group effected 
 respectively', and the Code Authority or Group Code Authority 
 
10 
 
 having jurisdiction shall act as determined by the majority of the 
 number of votes so cast. 
 
 (h) If any employer in this Subdivision is also an employer in 
 any other Subdivision of the Industry, or in any other Industry, the 
 provisions of this Supplemental Code, and the jurisdiction of the 
 Code Authority hereunder, shall apply to and affect only that part 
 of his business and product which is included in this Subdivision. 
 
 (i) An appeal from any action taken, or any rule or regulation 
 established affecting the right of any employer or employee in this 
 Subdivision, may be taken to the Basic Code Authority and there- 
 after to the Administrator. 
 
 (j) Nothing contained in this Supplemental Code shall constitute 
 the members of the Code Authority or any Group Code Authority as 
 partners for any purpose. Nor shall any member of the Code Au- 
 thority or of any Group Code Authority be or become liable in any 
 manner to anyone for any act of any other member, officer, agent or 
 employee of the Code Authority or any Group Code Authority exer- 
 cising reasonable diligence in the conduct of his duties hereunder, 
 nor be or become liable to anyone for any action or omission to act 
 under this Supplemental Code and the Code, except for his own will- 
 ful misfeasance or non-feasance. 
 
 (k) The Code Authority may appoint a trade practice committee 
 which shall meet with the trade practice committees appointed under 
 such other codes as maj^ be related to the Subdivision for the purpose 
 of formulating fair trade practices to govern the relationships be- 
 tween production and distribution employers under this code and 
 under such others to the end that such fair trade practices ma}' be 
 proposed to the Administrator as amendments to this code and such 
 other codes. 
 
 Article VI — 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 and methods 
 have been formulated, full details concerning them shall be made 
 available to all employers. Upon approval by 66%% of the employ- 
 ers, such accounting system and methods of cost finding and/or esti- 
 mating shall become effective and thereafter all employers shall 
 determine and/or estimate costs in accordance with the principles 
 of such methods. 
 
 Article VII — Selling Below Reasonable Cost 
 
 AVhen the Code Authority determines that an emergency exists 
 in this Subdivision, and that the cause thereof is destructive price- 
 cutting such as to render ineffective or seriously endanger the mainte- 
 nance of the provisions of this Supplemental Code, the Code Au- 
 thority may cause to be determined the lowest reasonable cost of the 
 product or products of this Subdivision, such determination to be 
 subject to such notice and hearing as the Administrator may re- 
 quire. The Administrator may approve, disapprove, or modify the 
 determination. Thereafter, during the period of the emergency, it 
 shall be an unfair trade practice lor any employer of the Subdivi- 
 
11 
 
 sion to sell or offer to sell 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 
 paj^ less therefor than the lowest reasonable cost of such product or 
 products. 
 
 When it appears that conditions have changed, the Code Author- 
 ity upon its own initiative or upon the request of anj^ interested 
 party, shall cause the determination to be reviewed. 
 
 For the purpose of gathering statistical data for the determina- 
 tion or revision of a lowest reasonable cost, the Administrator may 
 require each employer to furnish such information concerning the 
 cost of manufacturing and selling as the Administr-ator shall deem 
 necessary or proper for such purpose. 
 
 Article) VIII — Methoi>s of Peicixg and Terms of Payment 
 
 (a) If and when the Code Authority determines that in any branch 
 or group of the Subdivision it has been the generally recognized 
 practice of at least two-thirds of such branch or group of the Sub- 
 division to sell a specified product on the basis of net price lists, or 
 price lists with discount sheets and terms of sale and payment, each 
 emploj^er manufacturing such product shall, within ten days after 
 notice of such determination, file with the proper Group Code Au- 
 thority (or with Code Authority if there is no Group Code Authority 
 having jurisdiction) net price lists or price lists with discount sheets 
 and terms of sale and payment, individuall}^ prepared by him, show- 
 ing his current method of pricing, and the Group Code Authority or 
 Code Authority shall immediately publish and send copies thereof 
 to the employers of this Subdivision cooperating under this Code, 
 as described in Article V (c), and who manufacture like products. 
 Revisions of the method of pricing and terms of sale and payment 
 may be filed in like manner, from time to time thereafter, with the 
 proper Group Code Authority or Code Authority by any manufac- 
 turer of such products, each such revision to become operative upon 
 the date specified therein, but such revised method of pricing shall 
 be filed with the proper Group Code Authority or Code Authority 
 10 days in advance of operative date. Copies thereof, with notice of 
 the operative date specified, shall be immediately published and sent 
 to all employers manufacturing such product or products cooperating 
 under this Supplemental Code, as described in Article V (c), any of 
 whom may file, if he so desires, revisions of his methods of pricing, 
 which shall become effective upon the date when the revised method 
 of pricing first filed shall go into effect.^ 
 
 (b) If and when a Group Code Authority or Code Authority 
 shall determine that in any branch or group of the Subdivision not 
 now selling its products on the basis of price lists, with or without 
 discount sheets, with 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 with- 
 out discount sheets, is well recognized, and that a system of selling 
 on net price lists, or price lists with discount sheets and terms of sale 
 
 1 See paragraph 2 of order approving this Code. 
 
12 
 
 and payment, should be put into effect in such branch or group, 
 then each manufacturer of the product or products of such branch 
 or group shall, within twenty (20) days after notice of such deter- 
 mination, file with Group Code Authority or Code Authority net 
 price lists or price lists with discount sheets with terms of sale and 
 payment, showing- his method of pricing, and such method of pric- 
 ing may be thereafter revised in the manner hereinabove provided. 
 Provided that Group Code Authority or 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 para- 
 graph (b) of Article VIII, unless two-thirds of the employers co- 
 operating under this Supplemental Code as described in Article V 
 (c), who are at that time engaged in manufacturing such product, 
 shall affirmatively consent that such determination be made. 
 
 (c) No employer shall sell directly or indirectly, by any means 
 whatsoever, any product of this Subdivision at a price or at dis- 
 counts or on terms of sale and payment different from those provided 
 in his own current method of pricing and terms of sale and pay- 
 ment, as covered by the provisions of this Article VIII and pro- 
 ceedings thereunder. 
 
 Article IX — Til\de Practices 
 
 Each of the following acts and practices is deemed to be inim- 
 ical to the best interests of the Subdivision and of the public, and 
 each is, therefore, hereby declared to be, and to constitute, an unfair 
 method of competition, viz : 
 
 (1) Inaccurate advertising. — No employer shall publish adver- 
 tising (whether printed, radio, display or of any other nature), 
 which is misleading or inaccurate in any material particular, nor 
 shall any employer in any way misrepresent any goods (including 
 but without limitation, its use, trademark, grade, quality, quantity, 
 origin, size, substance, character, nature, finish, material, content or 
 preparation) or credit terms, values, policies, services, or the nature 
 or form of the business conducted. 
 
 (2) False Billing. — No employer shall knowingly withhold from 
 or insert in any quotation or invoice any statement that nudies it 
 inaccurate in any material particular. 
 
 (3) Inaccurate Lahelling. — No employer shall brand or mark or 
 pack any goods in any manner which is intended to or does deceive 
 or mislead purchasers with respect to the brand, grade, quality, 
 quantity, origin, size, substance, character, nature, finish, material 
 content or preparation of such goods. 
 
 (4) Defaviation. — No employer shall defame a competitor by 
 falsely imputing to him dishonorable conduct, inability to perform 
 contracts, questionable credit standing, or by other false representa- 
 tion, or by falsely disparaging the grade or quality of his goods. 
 
 (5) Destructive Price Cutting. — No employer shall indulge in 
 destructive price cutting. 
 
 (G) Threats of Law Suits. — No employer shall publish or circulate 
 im justified or unwarranted threats of legal proceedings which tend 
 to or have the effect of harassing competitors or intimidating their 
 customers. 
 
13 
 
 (7) Secret Rebates. — No employer shall secretly offer or make any 
 payment or allowance of a rebate, refund, commission credit, un- 
 earned discount or excess allowance, whether in the form of money 
 or otherwise, nor shall an employer secretly offer or extend to any 
 customer any special service or i^rivilege not extended to all custom- 
 ers of the same class, for the purpose of influencing a sale. 
 
 (8) Bribing Envployees. — No employer shall give, permit to be 
 given, or offer to give, anything of value for the purpose of influenc- 
 ing or rewarding the action of any employee, agent, or representative 
 of another in relation to the business of the employer of such em- 
 ployee, the principal of such agent or the represented party, without 
 the knowledge of such employer, principal or party. This provision 
 shall not be construed to prohibit free and general distribution of 
 articles commonly used for advertising except so far as such articles 
 are actually used for commercial bribery as hereinabove defined. 
 
 (9) Inducing Breach of Existing Contracts. — No employer shall 
 wilfully induce or attempt to induce the breach of existing commer- 
 cial contracts between competitors and their customers by any false 
 or deceptive means, or interfere with or obstruct the performance 
 of any such contractual duties or services by any such means, with 
 the purpose and effect of hampering, injuring or embarrassing com- 
 petitors in their business. 
 
 (10) Procuring G on-fidential Infortnation. — No emplo^^er shall 
 procure, otherwise than with the consent of any other employer, any 
 information concerning the business of such other employer which is 
 properly regarded by such other employer as a trade secret or con- 
 fidential within his or its organization other than information relat- 
 ing to a violation of any provision of the Code. 
 
 (11) Discounts. — No employer shall sell on the basis of a dollar 
 volume discount. This shall not prohibit quoting of quantity dis- 
 counts on published price list. 
 
 (12) Consignjiients. — No employer shall consign any product to 
 anyone or any class of trade, except in trading areas where existing 
 competing stocks are now maintained by an emploj-er; provided, 
 however, that the following practices are permitted : 
 
 (a) The transfer of an existing consignment from one consignee 
 to another consignee in the same trading area; 
 
 (b) The conversion of a bona fide sale into a consignment for the 
 purpose of protecting the seller when the purchaser is financially 
 embarrassed. 
 
 (c) The conducting of field tests or demonstrations of newly 
 designed product or of a new application of a product by any em- 
 ployer, without compensation. 
 
 (13) Guaranties. — No employer shall guarantee anj^ product be- 
 yond the guaranty as specified in the terms and conditions of sale 
 on file with the Code Authority and in effect at the time of the sale 
 of such product; this does not apply to performance or capacity 
 guarant3^ 
 
 Article X — Sales for Export 
 
 The provisions of this Supplemental Code concerning pricing and 
 marketing shall not apply to direct export sales of any product, 
 or to sales of any product destined ultimately for export. The term 
 
UNIVERSITY OF FLORIDA 
 
 14 
 
 3 1262 08583 0320 
 
 " 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 as export when any employer is 
 engaged in the Subdivision in such territory or possession. 
 
 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) As study of the needs of the Subdivision is continued after 
 the effective date, amendments, additions, or revisions to this Sup- 
 plemental Code may be proposed, which, upon being assented to in 
 writing by two-thirds vote of employers co-operating under this 
 Supplemental Code, shall be in full force and effect from and after 
 approval thereof by the President. 
 
 Article XII — Withdrawal 
 
 Upon thirty days notice to the Basic Code Authority and to the 
 Administrator, this Subdivision may, upon the concurring affirma- 
 tive vote of employers within the said Subdivision entitled to cast 
 two-thirds or more of all the votes that might be cast by all employers 
 within the subdivision entitled to vot« thereon, withdraw from the 
 jurisdiction of the Basic Code Authority. The eligibility of voters 
 and the method and effect of such voting shall be in accordance with 
 the provisions of Article V hereof. After and in the event such 
 withdrawal is accomplished, this Supplemental Code, together with 
 the provisions of the Code, shall become and be the sole code gov- 
 erning this Subdivision, and the Code Authority shall, for this Sub- 
 division, become and be the sole Code Authority and shall perform 
 all the functions with respect thereto. 
 
 Article III — Monopolies 
 
 Applicant imposes and shall impose no inequitable restrictions on 
 membershij) therein. The Supplemental Code presented by it is not 
 designed to promote monopoly, and shall not be so construed or ap- 
 plied as to oppress or eliminate small enterprises or discriminate 
 against them, and is designed to effectuate the policy of the Act. 
 
 Article XIV — Effective Date 
 
 This Supplemental Code shall become effective and binding on all 
 employers in the Subdivision on the eleventh day after its approval. 
 
 Approved Code No. 347 — Supplement No. 25. 
 Registry No. 1399-63. 
 
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