Approved Code No. 347 — Supplement No. 16 
 
 Registry No. 1312—03 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 SUPPLEMENTARY 
 CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 STEAM ENGINE 
 
 (A Division of the Machinery and Allied Products Industry) 
 
 AS APPROVED ON JUNE 11, 1934 
 
 WE DO OUR PART 
 
 UNIV. OP FL US. 
 ITS DEP-L, 
 
 ,.„ o- 
 
 U.8. DEPOWTOHV 
 
 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.Y.: Chamber of Commerce Building. 
 Charleston, S.C.: Chamber of Commerce Building. 
 Chicago, 111.: Suite 1706, 201 North Wells Street. 
 Cleveland, Ohio: Chamber of Commerce. 
 Dallas, Tex.: Chamber of Commerce Building. 
 Detroit, Mich.: 801 First National Bank Building. 
 Houston, Tex.: Chamber of Commerce Building. 
 Indianapolis, Ind.: Chamber of Commerce Building. 
 Jacksonville, Fla.: Chamber of Commerce Building. 
 Kansas City, Mo.: 1028 Baltimore Avenue. 
 Los Angeles, Calif.: 11 03 South Broadway. 
 Louisville, Ky.: 408 Federal Building. 
 Memphis, Tenn.: 229 Federal Building. 
 Minneapolis, Minn.: 213 Federal Building. 
 New Orleans, La.: Room 225-A, Customhouse. 
 New York, N.Y.: 734 Customhouse. 
 Norfolk, Va.: 406 East Plume Street. 
 Philadelphia, Pa.: 422 Commercial Trust Building. 
 Pittsburgh, Pa.: Chamber of Commerce Building. 
 Portland, Oreg.: 215 New Post Office Building. 
 St. Louis, Mo.: 506 Olive Street. 
 San Francisco, Calif.: 310 Customhouse. 
 Seattle, Wash.: 809 Federal Office Building. 
 
Approved Code No. 347 — Supplement No. 16 
 SUPPLEMENTARY CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 STEAM ENGINE MANUFACTURING INDUSTRY 
 As Approved on June 11, 1934 
 
 ORDER 
 
 Supplementary Code of Fair Competition for the Steam Engine 
 Manufacturing 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 Steam Engine Manufac- 
 turing 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 sale, 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. 
 
 3. That the provisions of Article IX, Section 5 to 10 inclusive; 
 be and they hereby are stayed for a period of fifteen (15) days; 
 
 00507° 657-98 34 (1) 
 
then to become effective unless I, by my further order othei 
 direct; within which time cause may be shown, if any there be, 
 why the above provisions mould not become effective; and that the 
 Temporary Code Authority send notice of the stay of these pro- 
 visions and of the opportunity to show cause why they should not 
 become effective to all known employers of th • Subdivision. 
 
 Hugh S. Johns 
 Administrator for Industrial Reoovery. 
 
 Approval recommended : 
 
 A. li. Glakot, 
 
 Division . I'hniiii.sfrntor. 
 
 Washington, D.C., 
 
 June 11, 19-i';. 
 
REPORT TO THE PRESIDENT 
 
 The President, 
 
 The 'White House. 
 
 Sir: This report relates to the Supplemental Code of Fair Com- 
 petition for the Steam Engine Manufacturing Subdivision of Ma- 
 chinery and Allied Products Industry as proposed by the Steam 
 Engine Manufacturing Association. 
 
 A public hearing was held in Washington, D.C. on December 
 4, 1933 and reconvened on December 21, 1933. The public hearings 
 were conducted in accordance with the provisions of Title I of the 
 National Industrial Recovery Act and all interested persons were 
 given full opportunity to be heard. 
 
 GENERAL STATEMENT 
 
 The Steam Engine Manufacturing Subdivision, being truly repre- 
 sentative 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 Article I in the Code of Fair Competition for the 
 Machinery and Allied Products Industry, approved by you on the 
 seventeenth day of March, 1934. 
 
 The Subdivision includes the design, manufacture, contracting for 
 or subletting the manufacturing for the sale of reciprocating steam 
 engines, including spare, repair and replacement parts thereof for 
 land and marine use, and includes all those so engaged; provided that 
 the Subdivison shall not include locomotive and automotive types 
 or spare, repair and replacement parts thereof. 
 
 Statistical material relative to production and employment for this 
 Subdivison has been submitted in the code application by the Steam 
 Engine Manufacturers' Association. This Association claims to 
 represent 95 per cent of the entire Subdivision measured by dollar 
 volume of business. 
 
 Annual sales, as reported by the Association, reached a peak in 
 1930. Sales in 1932 had dropped to less than one-half the 1930 level, 
 or from $3,450,000 in 1930 to $1,370,000 in 1932. Invested capital 
 and production capacity have remained constant. 
 
 Estimates of approximate employment for the entire Subdivision 
 submitted by the Trade Association indicate that employment de- 
 clined from 1,700 in 1930 to 895 in 1933, or 47.4 per cent. The 1933 
 employment is 45.8 per cent below the 1929 level of 1,650 wage 
 earners. 
 
 No figures are available on the full-time hours per week for the 
 entire Subdivision. According to data compiled from National 
 Recovery Administration questionnaires from a sample of the Sub- 
 division, the average working time in June, 1929, was 10 to 11 hours 
 per day; in June. 1933, 9 to 10 hours per day; and in October, 1933, 
 8 to 9 hours per day. 
 
 Average hours per week were reported to be 57.8 in June 1929; 
 39.1 in June. 1933: and 38.9 in October, 1933. In October, 1933, 
 the average hours were 32.7 per cent less than the June, 1929 average. 
 
 (3) 
 
The effect of the 40-hour provisioD with production at more normal 
 levels n ited on a basis of total man-hours per week in 
 
 I divided by the number of hours prescribed by the code. Since 
 1929 man-hours per week declined steadily from 95,370 to a minimum 
 of 35,034 in L933 (first six months), or approximately 68.2 per cent. 
 o then man-hours increased to 43,801, representing a rise of 25 
 per cent. 
 
 If it is assumed that the 48,465 average man-hours per week for 
 1931. are representative of the volume of production ror that ye r 
 and a reasonable measure of man-hour requirements in a more nor- 
 mal period, the adoption of the 40-hour week would require a fo 
 of approximately L200 employees, or 07 per cent of the 1929 working 
 LeveL 
 
 However, owing to the impossibility of all employees of the Sub- 
 division working the maximum 40 hours, the average work week 
 will be shorter, say 36 assumed effective hours and employment cor- 
 respondingly greater, viz: 1,350 workers will be required to produce 
 the 1931 volume. 
 
 The minimum wage provisions proposed for the Subdivision which 
 are operating under the Code of the Machinery and Allied Products 
 Industry are based on a flat minimum hourly rate of 32 cents per 
 hour for the South and the following city pouplation differentiate 
 for all other sections of the United States : Over 50,000 population, 
 40 cents per hour; Over 10,000 to 50,000 pouplation, 38 cents per 
 hour; 10,000 population and under, 3G cents per hour. 
 
 In addition to the minimum wage rates shown above, the Code 
 provides that women engaged in substantially the same work as men 
 shall receive the same rate of pay as such men employees; that the 
 minimum wage for woiiien 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. 
 
 Distributions of the number of factory workers receiving classified 
 rates in the specified areas are not available. Consequently, it is 
 only possible to estimate the approximate number of factory work 
 who will receive the benefit of the proposed minimum hourly n 
 regardless of locution, on the basis of the number of factory workers 
 receiving less than the designated hourly rates as of June 15, 1933. 
 
 Estimated number 
 
 i factory workers receiving less Hum designates] hourly 
 
 rates 
 
 
 Proposed minimum houriy ratcy 
 
 Distribution of factory 
 workers receiving less 
 than the minimum, 
 regardless of location 
 
 
 Approxi- 
 mate per- 
 cent 
 
 Approxi- 
 mate Dum- 
 ber 
 
 40 cents (other U.S.) 
 
 IL0 
 
 10. 1 
 8.3 
 3.3 
 
 104 
 
 38 cents (other U.S.) 
 
 88 
 
 36cants (other U.S.) 
 
 73 
 
 32 cents (South) 
 
 29 
 
 
 
Based on the distribution as of June 15, 1933 and on the specified 
 percentage of the number of factory workers receiving less than the 
 designated rates shown in the above table, the adoption of the pro- 
 posed minimum rates will probably cause an increase in factory pay- 
 rolls. The estimated increase as of June 15, 1933, regardless of 
 location of the workers, will probably, under the most favorable 
 conditions, not exceed 1.5 per cent assuming only upward adjust- 
 ment in the brackets below the 40-cent minimum and no change in 
 man-hour requirements. 
 
 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 National Industrial Recovery Code of the Machinery and 
 Allied Products Industrj?, 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 governing their adoption. 
 
 Article V provides for the establishment of a 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 of the Subdivision 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 states that no provisions of this Supplemental Code 
 relating to pricing and marketing shall apply to export sales as 
 defined by the term " export " in this Article. 
 
 Article XI provides that this Supplemental Code and all the pro- 
 visions thereof are expressly made subject to the right of the Presi- 
 dent, 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 to the 
 Administrator for approval. 
 
 Article XII. 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 XIII 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 thai : 
 
 (a) Said Supplemental Code is well designed to promote the poli- 
 aa&d pi . £ Title I of the National Industrial Recovery 
 
 . includi ral of obstructions to the free flow of interstate 
 
 and foreign commerce which tend to dimini h the amount (hereof 
 ami will provide for the general w< Ifaxe by promoting the organiza- 
 tion of industry for the purpose of cooperative action among the 
 
 Le groups, by inducing and maintaining united action of labor 
 management under adequate governmental sanctions and super- 
 vision, by eliminating unfair competitive practices, by promoting 
 the fullest possible utilization of the present productive capacity 01 
 industries, by avoiding undue restriction of production (except as 
 may be temporarily required), by increasing the consumption of in- 
 dustrial 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 10,000 
 employees; and is not classified by me ay a major industry. 
 
 (c) The Supplemental Code as approved complies in all respects 
 with the pertinent provisions of said Title of said Act, including 
 without limitation Subsection (a) of Section B, Subsection (a) of 
 Seetion 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 membership therein. 
 
 (<l) 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 elim- 
 inate or oppress small enterprises and will not operate to discrim- 
 inate 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 
 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, 
 
 Hugh S. Johxsox, 
 
 Administrator. 
 June 11, 1934. 
 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
 
 THE STEAM ENGINE MANUFACTURING INDUSTRY 
 
 A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 
 
 Article I — Purposes 
 
 To effectuate the policy of Title I of the National Industrial 
 Recovery Act, the following provisions are established as a Supple- 
 mental Code of Fair Competition for the Steam Engine Manu- 
 facturing Subdivision of the Machinery and Allied Products In- 
 dustry, 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 emplo3 T er therein. 
 
 Article II — Definition 
 
 "Applicant " means the Steam Engine Manufacturers Associa- 
 tion, a trade organization, all members of which are engaged in the 
 manufacture for sale of the products of the Steam Engine Manu- 
 facturing Subdivision of the Machinery and Allied Products In- 
 dustry, which organization is truly representative of this Subdivi- 
 sion. 
 
 " Industry " means the Machinery and Allied Products Industry, 
 as defined in its Code of Fair Competition as approved by the 
 President, March 17, 1934 and as such definition may from time to 
 time be amended. 
 
 " Subdivision " means the Steam Engine Manufacturing Subdivi- 
 sion of the Machinery and Allied Products Industry as defined and 
 set forth in Paragraph (33) of Article II of the Code of Fair 
 Competition for the Machinery and Allied Products Industry as 
 follows : 
 
 " Steam Engine Manufacturing Subdivision means the design, 
 manufacture, contracting for or subletting the manufacturing for the 
 sale of reciprocating steam engines including spare, repair and re- 
 placement parts thereof for land and marine use, and includes all 
 those so engaged; provided that the Subdivision shall not include 
 locomotive and automotive types or spare, repair and replacement 
 parts thereof." 
 
 " Code " means the Code of Fair Competition for the Machinery 
 and Allied Products Industry, as approved by the President, and as 
 from time to time amended. 
 
 " Person " means a natural person, a partnership, a corporation, an 
 association, a trust, a trustee, a trustee in bankruptcy, a receiver, or 
 other entity. 
 
 " Employer " means any person engaged in this Subdivision of the 
 Industry, either on his own behalf or as an employer of labor. 
 
 (7) 
 
8 
 
 " Employee " means any one who is employed in the 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. 
 
 "The Administrator" means the Administrator for Industrial 
 Recovery. 
 
 " Basic Code Authority " means the Code Authority for the 
 Machinery and Allied Products Industry as constituted by the Code. 
 
 "(Ode Authority" means the Code Authority constituted for 
 this Subdivision as provided 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, consti- 
 tuted under the authority of Article V of this Supplemental ("ode. 
 
 " Publish " means to make available to the public. 
 
 " Principles " means all essential characteristics. 
 
 Article III — Adoption of Employment Provisions of Code 
 
 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 shall be 
 applicable to this Supplemental Code as such or as it may here- 
 after be administered as an autonomous Code ; Article VIII, " Modi- 
 fications and Termination"; and Article IX, "Withdrawal" are 
 hereby made a part of this Supplemental Code with the same effect 
 as if they were written into this Supplemental Code. 
 
 Article V— Organization and Administration 
 
 To administer and supervise, and facilitate the performance of 
 the provisions of the Supplemental Code, there is hereby established 
 a " Code Authority." 
 
 (a) The Code Authority for this Subdivision shall consist of 
 
 (1) The Executive Committee of the Steam Engine Manufac- 
 turers Association, consisting of not less than four and not more 
 than seven members. 
 
 (2) One additional member to be elected in any fair manner, 
 with the approval of the Administrator, by employers in this Sub- 
 division not members of the Applicant, who are cooperating in this 
 Supplemental Code, as described in Section (e) hereof, if so desired, 
 by such non-members. 
 
 (3) The Administrator may, at his discretion appoint one addi- 
 tional member (without vote and without expen.se to the Sub- 
 division.) 
 
9 
 
 (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 membership, and (2) 
 submit to the Administrator true copies of its articles of associa- 
 tion, by-laws, regulations, and any amendments when made thereto, 
 together with such other information as to membership, organiza- 
 tion, and activities as the Administrator may deem necessary to 
 effectuate the purposes of the Act. 
 
 (c) In order that the Code Authority shall at all times be truly 
 representative of the Subdivision and in other respects comply with 
 the provisions of the Act, the Administrator may provide such hear- 
 ings as he m&y deem proper ; and thereafter if he shall find that the 
 Code Authority is not truly representative or does not in other 
 respects comply with the provisions of the Act, may require an 
 appropriate modification in the method of selection of the Code Au- 
 thority, or any Group-Code Authority. 
 
 The Code Authority may adopt rules and regulations for its pro- 
 cedure and employ such personnel as it may deem necessary. 
 
 (d) Any employer in this Subdivision shall be eligible for mem- 
 bership in Steam Engine Manufacturers Association. 
 
 (e) Any employer in this Subdivision shall be entitled to vote, 
 subject to the provisions of Section (a) hereof, at the election of, 
 and share in the benefits of the activities of the Code Authority and 
 may participate in any endeavors of the Code Authority, in the prep- 
 aration of any revisions of, or additions or supplements to, this Sup- 
 plemental Code, by paying his proper pro rata share of the reason- 
 able 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 concur- 
 rently 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 such 
 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 the employers shall be b}' a majority vote, cast and com- 
 puted in each of the tAvo methods hereinabove provided. 
 
 (f) Employers in this Subdivision having a common interest and 
 common problems, may be grouped by Code Authority for adminis- 
 trative purposes into various Group Subdivisions or product classi- 
 fication. 
 
 In each Group Subdivision, or product classification, there may 
 be a Group-Code Authority approved, or appointed, by Coda 
 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 cause such 
 investigation or audit to be made, to the extent permitted by the Act, 
 
10 
 
 as may be deemed necessary. If such investigation 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 Code 
 Authority shall have the right to investigate to the extent permitted 
 by the Act and analyze any transaction coming under the scope of 
 this Supplemental ('ode on which any unfair competition is alleged, 
 to show evidence of any violation of this Supplemental Code, to 
 report any such alleged violation to the proper authorities for action. 
 
 Aktm-le 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. Thereafter all employers shall determine 
 and/or estimate costs in accordance with the principles of such 
 methods. 
 
 Article VII — Selling Below Reasonable Cost 
 
 (a.) When the Code Authority has reason to believe that an emer- 
 gency exists as to any product or products of the Subdivision, and 
 that the cause thereof is destructive price-cutting such as to render 
 ineffective or seriously endanger the purposes or the maintenance of 
 the provision of this Supplemental Code, the Code Authority may 
 cause an investigation of costs and pricing to be made by an impartial 
 agency in order to determine the existence of the emergency and the 
 Code Authority ma} 7 cause to be determined the lowest reasonable 
 cost of the product or products of this Subdivision, such determina- 
 tion to be subject to such notice and hearing as the Administrator 
 may require. The Administrator may approve, disapprove, or modify 
 the determination. Thereafter, during the period of emergency, no 
 employer of the Subdivision shall sell or offer to sell any products of 
 the Subdivision for which the lowest reasonable cost has been deter- 
 mined at such prices or upon such terms or conditions of sale that the 
 buyer will pay less therefor than the lowest reasonable cost of such 
 products. 
 
 When it appears that conditions have changed, the Code Authority, 
 upon its own initiative or upon the request of any interested party, 
 shall cause the determination to be reviewed. 
 
 Article VIII — Price Lists 
 
 (a) If and when the Code Authority of this Subdivision deter- 
 mines that in any branch or group of the Subdivision it has been 
 the generally recognised practice to sell a specified product on the 
 basis of net price lists, or price lists with discount sheets, and fixed 
 terms of sale and payment, each employer shall, within ten (10) 
 days after notice of such determination, tile with the Code Author- 
 ity a net price list, or a price list and discount sheet, as the case may 
 be, individually prepared by him. showing his current juices, or 
 prices and discounts, and terms of sale and payment, for such sped- 
 
11 
 
 fied product, and the Code Authority shall immediately publish and 
 send copies thereof to all known employers who are cooperating 
 in this Supplemental Code as described 'in Section (e) of Article 
 V hereof. 
 
 llevised price lists and/or discount sheets and/or terms of sale 
 and payment for such product may be filed from time to time 
 thereafter with the Code Authority by any employer, but such re- 
 vised price lists and/or discount sheets and/or terms of sale and 
 payment shall be filed with the Code Authority ten (10) days in 
 advance of the effective date. Copies of such revised price lists 
 and/or discount sheets and/or terms of sale and payment, for such 
 product, with notice of the effective date specified, shall be imme- 
 diately published and sent to all known employers who are cooperat- 
 ing in this Supplemental Code as described in Section (e) of Article 
 Vhereof, any of whom may file, if he so desires, to become effec- 
 tive upon the date when the revised price list and/or discount sheet 
 and/or terms of sale and payment first filed shall go into effect, 
 revisions of his price lists and/or discount sheets and/or terms of 
 sale and payment establishing prices or prices and discounts not 
 lower or terms of sale and payment not more favorable than those 
 established in the revised price lists and/or discount sheets and/or 
 terms of sale and payment first filed. Nothing in the foregoing 
 shall constitute a limitation upon the right of any employer to file 
 revised lists fixing his own prices, discounts and terms of sale and 
 payment, which prices and discounts may be either more or less 
 favorable than those contained in any other price list, to be effective 
 as provided in the first sentence of this paragraph. 
 
 (b) If and when the Code Authority shall determine that in any 
 branch or group of the Subdivision not now selling its product on the 
 basis of price lists, with or without discount sheets, with fixed terms 
 of sale and pa} T ment, the distribution or marketing conditions in said 
 branch or group are the same as, or similar to, the distribution or 
 marketing conditions in a branch or group of the Subdivision where 
 the use of price lists, with or without discount sheets, and fixed terms 
 of sale and payment, is well recognized, and that a system of selling 
 on net price lists or price lists and discount sheets with fixed terms of 
 sale and payment for such product should be put into effect in such 
 branch or group, then each employer of such branch or group shall 
 within ten (10) days after notice of such determination, file with 
 the Code Authority net price lists or price lists and discount sheets, 
 containing fixed terms of sale and payment, showing his current 
 prices and discounts and terms of sale and payment, and such price 
 lists and/or discount sheets and/or terms of sale and payment may be 
 thereafter revised in the manner hereinabove provided; provided, 
 however, that the Code Authority shall make no determination to 
 place any product of the Subdivision (not now on a price list basis) 
 on a price list basis, as provided in this paragraph (b) of Article 
 VIII, unless the employers who are at that time engaged in manu- 
 facturing such product and are at that time cooperating in this Code 
 have given their affirmative consent to such determination. The 
 eligibility requirements, method and effect of such voting shall be 
 the same as provided in Section (e) of Article V. 
 
 Each employer shall prepare and shall furnish the Code Authority 
 for distribution with such number of copies of his price lists and/or 
 
12 
 
 discount sheets and terms of sale and payment as Code Authority 
 may prescribe. 
 
 (c) No employer shall sell directly or indirectly by any means 
 whatsoever any product of the Subdivision covered by provisions of 
 this Article Y1II at a price or at discounts, or on terms of sale and 
 
 fmyment. different from those provided in his own current net price 
 ists. 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, engineering, servicing, financing, financial risks, or 
 other similar special charges (except as provided in Article VII 
 above), provided, however, that in the event of an employer quoting 
 a higher price than the price published in his own price list and/or 
 price list and discount sheets to take care of unusual selling engineer- 
 ing, servicing, financing, financial risks, or other similar special 
 charges, he shall not subsequently quote a lower price on said pro- 
 spective 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 organiza- 
 tion of industrial consumers, with the result that any industrial 
 consumer secures a discount, allowance or price other than the dis- 
 count, allowance or price provided for in the emplcryer's own cur- 
 rent net price lists or price lists with discount sheets. 
 
 No employer shall evade any provision of this Code by selling 
 to or through any dealer, jobber, distributor or other selling agency 
 which shall fail to agree to resell in accordance with the provisions 
 of Article VII. VIII and IX of this Supplemental Code. 
 
 (e) Wherever by the provisions of this Article VIII an em- 
 ployer is or may be required to or permitted to file terms of sale 
 and payment, such terms shall mean usual or standard terms, and 
 to cover any special and/or unusual terms definite formulae for 
 determining such special and or unusual terms shall be filed. 
 
 (f) If and when Code Authority shall determine that it is un- 
 desirable to continue the filing of net price lists and or price lists 
 with discount sheets and/or fixed terms of sale and payment on 
 any product in respect of which such filing has hertofore been re- 
 quired, such filing shall cease and the provisions of this Article 
 shall not apply to such product unless and until Code Authority 
 shall again determine that such filing be made. 
 
 Article IX — 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 competition, viz: 
 
 1. The secret offering or making, to any customer, agent, fiduciary 
 or representative of customer, of any payment or allowance of a 
 rebate, refund, commission, credit, credit subsidy, unearned dis- 
 
13 
 
 count or excess allowance, whether in the form of money or other- 
 wise, or any special service or privilege, for the purpose of influenc- 
 ing 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 rep- 
 resentative of another in relation to the business of the employer 
 of such emploj^ee or the principal of such agent without the knowl- 
 edge of such employer or principal, provided that no provision of 
 this Code shall be construed to prohibit free and general distribu- 
 tion of articles commonly used for advertising, except so far as such 
 articles are actually used for commercial bribery as hereinabove 
 defined. 
 
 2. Any discrimination between purchasers, by the sale of any ar- 
 ticle having a published price, at any price other than the seller's 
 published price, by means of direct or indirect price concessions, or 
 by means of any privilege not extended to purchasers generally. 
 
 3. Untruthfully advertising, representing, or marking any prod- 
 uct, with intent to deceive or mislead. 
 
 4. The publishing or circularizing of threat of any suit for in- 
 fringement of patent or trade mark, or of any other legal proceed- 
 ings, not in good faith, which would tend to harass a competitor or 
 intimidate his customer. 
 
 5. The taking in trade or accepting in trade any secondhand or 
 old equipment in part payment for new, provided, however, that 
 this provision shall not be construed to prohibit in any way the 
 return within six months of the date of shipment, to the Vendor 
 and the allowance of any fair adjustment thereon by the Vendor 
 of any product which shall not meet the purposes for which it was 
 sold. Any employer may, however, assist in finding a bona fide 
 buyer for said equipment, but shall in no case take any financial 
 interest in it. 
 
 6. So long as the maker of any product of this Subdivision bear- 
 ing the maker's name or trade mark, which has required special 
 designing, research or development expense (or his successor in 
 business) continues to make and supply such spare, repair and re- 
 placement parts therefor, supptying repair parts for such 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 the ultimate 
 user is clearly informed by marking on such parts, packages, tags 
 and in catalogues, price lists, quoted prices, advertisements or ad- 
 vertising 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 employer of this Subdivision. 
 
 7. The furnishing to any purchaser, and/or his agent, directly or 
 indirectly of detailed shop drawings of the products of this Subdi- 
 vision without filing a statement of such proposed transaction with 
 the Code Authority which may approve or with the approval of the 
 Administrator disapprove the transaction within ten (10) days by 
 written notice to the employer. 
 
 8. Disseminating false or misleading information relative to com- 
 petitor's products, selling prices, reputation, credit or financial stand- 
 ing, ability to perform work, or labor conditions. 
 
UNIVERSITY OF FLORIDA 
 
 14 3 1262 08583 0494 
 
 9. Inducing or attempting to induce a breach or abandonment of 
 contract covering the purchase or sate of the product;- of this Sub- 
 division: provided, however, that nothing in this Sectiou shall be 
 construed to prohibit the attempt on the part of the owner 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 lor any employer to engage 
 in destructive price cutting. 
 
 Article X — Sales for Export 
 
 The provisions of this Supplemental (Vide concerning pricing and 
 marketing (Articles VII. Y11I 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 shipments to all 
 places without the several states of the United States and the Dis- 
 trict of Columbia; provided, however, that no shipment to any terri- 
 tory or possession of the United States shall be considered an export 
 when any employer is engaged in the industry 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) Study of the trade practices of this Subdivision will be con- 
 tinued by Code Authority, with the intention of submitting from 
 time to time, after its effective date, amendments or additions to, or 
 revisions of, or supplements to, this Supplemental Code. 
 
 Any such amendments, additions, revisions, or supplements, pro- 
 posed by Code Authority, and approved by a 75% vote of the em- 
 ployers shall be in full force and effect upon approval by the Presi- 
 dent. The eligibility requirements, method, and effect of such voting 
 shall he the same as provided in Section (e) of Article V. 
 
 Article XII — Monopolies 
 
 The Supplemental Code presented by Applicant is not designed 
 to promote monopoly, and shall not be so 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 this Subdivision on the eleventh day after its 
 approval by the President. 
 
 Approved Codi No. 347 Supplement No. in. 
 Registry No. 1312-03. 
 
 O