V Approved Code No. 347 — Supplement No. 27 Registry No. 1399—68 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MECHANICAL PRESS MANUFACTURING INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JULY 9, 1934 VE DO OUR PART ,. PO U.S. DEPOSE UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. Pr'ce 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. 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Approved Code No. 347 — Supplement No. 27 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MECHANICAL PRESS MANUFACTURING INDUSTRY As Approved on July 9, 1934 ORDER Approving Supplementary Code of Fair Competition for the Mechanical Press 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 Mechanical Press Manu- facturing Subdivision of Machinery and Allied Products Industry, and a hearing 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 condition that the provisions of Article VIII, 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. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Barton W. Murray, Division Administrator. Washington, D.C., July 0, 1934. 72G44 829-35 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Supplemental Code of Fair Competi- tion for the Mechanical Press Manufacturing Subdivision of the Machinery and Allied Products Industry, public hearing having been conducted thereon in Washington, D.C., May 10, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. Every person who filed a request for an appearance was freely heard in public and all statutory and regulatory require- ments were complied with. GENERAL STATEMENT The Mechanical Press Builders' Association, being truly repre- sentative of this Subdivision of the Machinery and Allied Products Industry, has elected to avail itself of the option of submitting a Supplemental Code of Fair Competition, as provided in Article I of the Basic Code for the Machinery and Allied Products Industry approved by you on the seventeenth day of March 1934. This Subdivision represents a part of the capital goods industry, manufacturing and selling mechanically power-driven presses with reciprocating slide or slides, and machinery (except machinery within the scope of another code) used for the purpose of shearing, blanking, punching, stamping, embossing, forming and drawing metal, hot or cold, and accessories, attachments, and parts thereof. ECONOMIC EFFECT It is estimated that this Subdivision in 1929 employed approxi- mately 5,800 persons. This estimate is based on data contained in the National Recovery Administration questionnaires returned by 16 members of the Subdivision. According to a summary of the questionnaire returns by 16 mem- bers of the Subdivision, factory employment in the second quarter of 1933 declined 89.2 per cent from 1929. An increase in employment of 106.4 per cent was noted from June 1933 to November 1933. Em- ployment in November 1933 was 63.8 per cent below the 1929 level. Annual sales of the Subdivision, based on estimates furnished in the code application by the Mechanical Press Builders' Association declined from $25,370,000 in 1929 to $2,461,000 in 1932, or 90.3 per cent, and increased thereafter to $3,068,000 in 1933, or 24.7 per cent over the previous year. Approximately 54.3 per cent of the workers were employed more than 40 hours per week during a representative week of June, 1933. The average work-week declined from 54.9 hours in June 1929 to 29.0 hours in June, 1933, then increased to 87.7 hours in November 1933. Man-hours per week for a representative sample of the Subdivision declined 90.6 percent from June, 1929 to June, 1933 and in November, 1933 showed an increase of more than 150 per cent over June, 1933. (2) Man-hour requirements for November, 1933 were 74.8 per cent below the level of 1929. Due to the fact that the Subdivision in November 1933 was operating on an average of 37.7 hours per week, little in- crease in employment may be expected as a result of the adoption of a 40-hour week. Approximately 10.9 per cent of the factory workers employed in June, 1933 were receiving less than 40 cents per hour; 9.5 per cent were receiving less than 38 cents per hour ; 8.1 per cent were receiving less than 36 cents per hour, and 4.0 per cent were receiving less than 32 cents per hour. Based on the distribution of hourly rates for June, 1933, the adoption of the minimum wage rates provided by the code will effect a concomitant increase in total payrolls of approxi- mately one per cent, assuming upward adjustment in the brackets be- low below the 40-cent minimum only and no change in man-hour requirements. RESUME OF THE SUPPLEMENTAL CODE Article I states the purpose of the Supplemental Code. Article II accurately defines specific terms employed in this Sup- plemental Code. Article III : The labor provisions of the Basic Code for the Machinery and Allied Products Industry, as approved March 17, 1934, are incorporated by reference as the labor provisions of this Supplemental Code. Article IV adopts the relevant portions of Article II " Definitions ", Article VI " Administration ", and Article VIII, " Modifications and Termination ", of the Basic Code for the Machinery and Allied Products Industry, as approved March 17, 1934. Article V establishes a code authority consisting of not less than six (6) nor more than nine (9) members, two of whom may be elected by vote of employers who are not members of the Applicant Association. The Administrator may, in his discretion, appoint one additional member, without vote and without expense to the Sub- division. Together with the applicable provisions of the Basic Code, mechanism is provided for the administration of this Supplemental Code. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides that during an emergency, the lowest rea- sonable cost of products of the Subdivision may be determined, and that during said emergency, it shall be an unfair trade practice to sell at less than the determined reasonable cost. 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 the trade practices which have been especially designed to offset unfair competition in this Subdivision. Article X stipulates that no provision of this Supplemental Code relating to price or terms of selling, shipping or marketing, shall apply to export trade or sales or shipments for export trade. " Export trade " shall be as defined in the Export Trade Act adopted April 10, 1918. Article XI contains the mandatory provisions contained in Section 10 (b) of the Act, and also provides for the submission of proposed amendments to the Supplemental Code. Article XII provides for the withdrawal of this Subdivision from the jurisdiction of the Basic Code Authority and for the continued functioning of this Subdivision as an individual industry under its own Code. Article XIII stipulates that there shall be no inequitable restric- tions and provides against monopolies. Article XIV gives the effective date of this Supplemental Code. FINDINGS The Deputy Administrator in his final report to me on said Sup- plemental Code, having found as herein set forth and on the basis of all the proceedings in this matter : I find that : (a) Said Supplemental Code is well designed to promote the poli- cies 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 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 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 provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association, truly representa- tive of the aforesaid Subdivision ; and that said association imposes no inequitable restrictions on admission to membership 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 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, on the condition that the provisions of Article VIII be stayed, as stated in the Order. Respectfully, Hugh S. Johnson, Administrator. July 9, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MECHANICAL PRESS MANUFACTURING IN- DUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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 for the Mechanical Press Manufacturing Subdivision of the Machinery and Allied Products Industry, and together with the Code of Fair Competition of Machinery and Allied Products Industry, shall be the standard of fair competition for this Subdi- vision, and shall be binding on every employer therein. Article II — Definitions "Applicant" means the Mechanical Press Builders' Association, a trade organization, all members of which are engaged in the manu- facture for sale of the products of the Mechanical Press Manufac- turing Subdivision of the Machinery and Allied Products Industry. " Industry " means the Machinery and Allied Products Industry, as deiined in its Code of Fair Competition, as approved by the Presi- dent, and as such definition may from time to time be amended. " Subdivision " means the Mechanical Press Manufacturing Sub- division of the Machinery and Allied Products Industry as defined and set forth in paragraph 44, Article II, of the Code of Fair Competition of the Machinery and Allied Products Industry as amended as follows : " Mechanical Press Manufacturing Subdivision means the manu- facture for sale of mechanically power-driven presses with recipro- cating slide or slides, and machinery (except machinery within the scope of another code) used for the purpose of shearing, blanking, punching, stamping, embossing, forming, and drawing metal, hot or cold, and accessories, attachments, and parts thereof produced by the manufacturers of the completed products of the Subdivision." " Code " means the Code of Fair Competition of the Machinery and Allied Products Industry as approved by the President, March 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. " Employer " means any person engaged in this Subdivision either on his own behalf or as an employer of labor. " Employee " means anyone who is employed in the Subdivision by any such employer. (5) 6 " 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 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 Supplemental Code. " Group Code Authority " means the Code Authority for any group or product classification within this Subdivision. " Publish " means to make available to the public. Article III — Employment Provisions The following Articles of the Code, viz : Article III, " Working Hours " ; Article IV, " Wages " ; and Article V, " General Labor Pro- visions ", 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 appli- cable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code ; and Article VIII, " Modifica- tions and Termination ", are hereby made a part of this Supple- mental Code, with the same effect as if they were written into this Supplemental Code. Article V — Administration (a) A Code Authority for this Subdivision is hereby constituted to administer and supervise, and to facilitate the enforcement of the Code, and of this Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. (b) During a period not to exceed sixty (60) days following the effective date and pending the election of the permanent Code Authority, the executive committee of the Applicant shall constitute a temporary Code Authority. The Administrator, in his discretion, may appoint one additional member (without vote and without expense to the Subdivision). (c) The Applicant shall, by at least ten (10) days' notice sent by registered mail to all employers whose names the Applicant has ascertained after reasonably diligent search, call a meeting of em- ployers to be held within sixty (60) days after the effective date for the purpose of adopting procedural rules and regulations for the election, organization, and operation of the permanent Code Author- ity, and electing a permanent Code Authority which shall consist of not less than six (6) nor more than nine (9) representatives of employers entitled to participate as provided in Section (d) of this Article V, two (2) of whom may be elected by a vote of the employers not members of Applicant. The Administrator in his discretion may appoint one additional member (without vote and without expense to the Subdivision). The permanent Code Authority so elected and appointed shall succeed the temporary Code Authority. Any vacancy on the Code Authority due to death, resignation or because a member thereof has ceased to be connected with the Sub- division shall be filled at a meeting of employers called by the Code Authority on at least ten days' notice sent by registered mail to all employers in this Subdivision, and by a vote similar to the vote by which the retired member was originally selected. (d) Any employer shall be entitled to vote at the election of the permanent Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and may participate in any endeavors of Code Authority in the prepara- tion of any amendments or revisions of, or additions or supplements to, this Supplemental Code by paying or agreeing to pay, as and when assessed, his proper pro rata share of the reasonable cost of administering this Supplemental Code as determined by Code Authority, and approved by the Administrator. (e) Action by employers in any Subdivision meeting for the elec- tion of Code Authority as provided in Subsection (c) of this Article V, shall be by vote of the employers entitled to vote as provided in Section (d) of this Article V, and who are present in person or by proxy, each such employer to have one vote only. Action by em- ployers in any Subdivision meeting for the adoption of procedural rules, revisions, or additions to the Supplemental Code, or the trans- action of other business of the Subdivision under this Supple- mental Code, shall be by vote of the employers in the Subdivision who are entitled to vote thereat as provided in Section (d), Article V of the Supplemental Code and are present in person or by proxy duly executed and filed with Code Authority; cast and computed in the manner provided in Section (d), Article VI of the Code. All questions as to the number of votes which each employer shall be entitled to cast at any meeting of employers other than the meeting held to vote for the election of the permanent Code Authority shall be determined by Code Authority in accordance with Section (d), Article VI of the Code. (f ) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for adminis- trative purposes. There may be a Group Code Authority approved or appointed by Code Authority for each such Group. (g) If formal complaint is made to Code Authority that pro- visions of this Supplemental Code have been violated by any em- ployer, Code Authority, or the proper Group Code Authority may, to the extent permitted by the Act, cause such investigation or audit to be made as may be deemed necessary. If such investigation is made by Group Code Authority, it shall report the result of such investigation or audit to the Code Authorit}^ for action. (h) The Code Authority may appoint a Trade Practice Com- mittee which shall meet with the Trade Practice Committees ap- pointed under such other Codes as may be related to the Subdivision for the purpose of formulating fair trade practices to govern the relationships between production and distribution employers under 8 this Supplemental Code and under such others to the extent that such fair trade practices may be proposed to the Administrator as amendments to this Supplemental 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. Thereafter, all employers shall determine and/or estimate costs in accordance with the principles of such methods. Article VII — Selling Below Reasonable Cost When 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 main- tenance of the provisions of this Supplemental Code, the Code Authority may cause to be determined the lowest reasonable cost of the products of this Subdivision, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determina- tion. Thereafter, during the period of the emergency, it shall be an unfair trade practice for any employer of the Subdivision to sell or offer to sell any products of the Subdivision for which the lowest reasonable cost has been determined, at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than the lowest reasonable cost of such products. When it appears that conditions have changed, the Code Author- ity, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. Article VIII — Price Lists x (a) Each employer shall establish his own prices for his standard products, accessories, and/or attachments, which he manufactures or intends to manufacture. Such prices shall be filed with Code Authority, who shall immediately publish and send copies thereof to all known employers who are cooperating under this Supple- mental Code, as described in Article V (d), and such prices shall then be the list or published prices to be quoted to all customers. These list prices shall remain in effect and no deviation may be made from them until changes are made as provided in the following paragraph (b) of this Article VIII. ( b) In order to effect changes in list or published prices, at least ten (10) days before new prices are intended to become effective, the employer shall file a notice of change, including a schedule of new prices, with Code Authority who shall immediately publish and send copies thereof to all known employers within the Subdivision who are cooperating under this Supplemental Code, as described in 1 See paragraph 2 of order approving this Code. Article V (d), and who are engaged in the manufacture of such specified products. During the above-mentioned ten (10) days period, any employer shall have the privilege of establishing and publishing, through Code Authority, new prices to become effective on the same date. (c) No change shall be made by any employer in the Subdivision in prices quoted on special presses not included in the above-men- tioned list or published prices until after ten (10) days' notice has been filed with Code Authority, who shall immediately notify all known employers within the Subdivision who are engaged in the manufacture of such specified products and such employers may revise their own quotations to become effective on the effective date of the first changed quotations. (d) All quotations for domestic destination shall be made f.o.b. cars at point of manufacture, or if delivered price is quoted, actual transportation costs shall be quoted as a separate item. Article IX — Trade Practices Each of the following acts or practices is deemed to be inimical 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 and is prohibited ; viz : (a) False Marking or Branding. — The false marking or branding of any product of the Subdivision which has the tendency to mis- lead or deceive customers or prospective customers, whether as to the grade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Subdivision or otherwise. (b) Misrepresentation or False or Misleading Advertising . — The making or causing or knowingly permitting to be made or published any false, materially inaccurate, or deceptive statement by way of advertisement or otherwise, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish or prepara- tion of any product of the Subdivision, or the credit terms, values, policies, or services of any employer of the Subdivision, or other- wise, having the tendency or capacity to mislead or deceive custom- ers or prospective customers. (c) Commercial Bribery. — The payment, or promise to pay, to any agent, fiduciary, or representative, of money or valuable thing, with or without the knowledge of his principal, for the purpose of influencing any sale to his principal. This provision shall not be construed to prohibit free and general distribution of articles com- monly used for advertising, except so far as such articles are actually used for commercial bribery as hereinabove defined. (d) Interference with Contractual Relations. — Maliciously induc- ing or attempting to induce the breach of an existing contract be- tween a competitor and his customer or source of supply, or inter- fering with or obstructing the performance of any such contractual duties or services. (e) Secret Rebates. — The secretly offering or making of any pay- ment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in the form of money or otherwise, or the secretly offering or extending to any customer 10 of any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. (f) Giving of Prizes, Premiums, or Gifts— -The offering or giv- ing of prizes, premiums, or gifts in connection with the sale of products, or as an inducement thereto, by any scheme which involves misrepresentation or fraud. (g) Defamation. — The defamation of competitors by falsely im- puting to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations or by the false disparagement of the grade or quality of their goods. (h) Threats of Litigation. — The publishing or circulating of threats or suits for infringement of patents or trade-marks or of any other legal proceedings not in good faith, with the tendency or effect of harassing competitors or of intimidating their customers. (i) Destructive Price-Gutting. — The engaging in destructive price-cutting by any employer in the Subdivision. (j) Other Unfair Practices. — Nothing in this Supplemental Code shall limit the effect of any adjudication by the courts or holding by the Federal Trade Commission on complaint, finding, and order, that any practice or method not outlined above is unfair. Article X — Sales for Export No provision of this Supplemental Code relating to price or terms of selling, shipping or marketing, shall apply to export trade or sales or shipments for export trade. " Export Trade " shall be as defined in the Export Trade Act adopted April 10, 1918. 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) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority, and authorized by the affirmative vote of two-thirds or more of the employers shall be in full force and effect upon approval by the President. The eligibility requirements, method, and effect of such voting shall be the same as provided by Article V hereof. 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 vote 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 witli 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 govern- ing this Subdivision, and the Code Authority shall, for this Sub- 11 division, become and be the sole Code Authority and shall perform all the functions with respect thereto. Article XIII — Monopolies Applicant imposes and shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it 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 XIV — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval. Approved Code No. 347 — Supplement No. 27. , Registry No. 1399-68. O UNIVERSITY OF FLORIDA 3 1262 08850 5085