Approved Code No. 84 — Supplement No. 54 / Registry No. 1149—1—06 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FILE MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Punishing and Metal Coating Industry) AS APPROVED ON OCTOBER 9, 1934 WE DO OUR PART UN!V. OF i-L Lli. j UOCUMENIS.DEPL, U.S. nEPO^TOK>Y 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 Foioign 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. : 1163 South Broadway. Louisville, Ky. : 408 Federal Building. Memphis, Teun. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans. La. : Room 225- A, Customhouse. New Y(irk, 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. : nOO Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle. Wash. ; 809 Federal Office Building. Approved Code No. 84 — Supplement No. 54 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FILE MANUFACTURING INDUSTRY As Approved on October 9, 1934 ORDER Approving Supplementary Code of Fair Competition for the File Manufacturing Industry A division of the fabricated metal products manufacturing and metal finishing and metal coating industry An application having been duly made pursuant to and in full compliance with the provisions of Title I oi the National Industrial Recovery Act, approved June 16, 1933. and in accordance with the provisions of Section 1 of Article VI or the Basic Code for the Fab- ricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the File Manufac- turing Industry, and hearing having been duly held thereon ; and the annexed report on said Supplementary Code, containing find- ings with respect thereto, having been made and directed to the X^rGSlclGIlt' I NOW, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to author- ity vested in it by Executive Orders of the President, including Executive Order No. 6859, and otherwise, does hereby incorporate by reference said annexed report and does find that said Supple- mentary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and does hereby order that said Supplementary Code of Fair Com- petition be and it is hereby approved; provided, however, that the provisions of Article VI be and they are hereby stayed pending fur- ther Order of such Board; and provided further that the applicant shall amend its Articles of Association and By-laws to the satis- faction of the National Industrial Recovery Board within thirty (30) da3's after the effective date of this Supplementary Code. National Industrial Reco^-ery Board, By G. A. Lynch, Administrative Officer. Approval recommended : Kilbol"rne Johnston, Acting Division Administrator. Wa^jiiixoton, D. C. October 9\ 193Ji. 004.'?2'> 1244-27 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 File Manufacturing Industry, a Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D. C, April 5, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The File Manufacturing Industry, being truly representative of this Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of submitting a Supplementary Code of Fair Competition, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products ISIanufacturing and Metal Finishing and Metal Coating Industry, approved by you on the second daj' of November, 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Sup- plementary Code. Article III : This Industry is a Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of its Basic Code as approved November 2, 1933, are the labor provisions of this Supplementary Code. Article IV establishes a Supplementary Code Authority consisting of five (5) members, to be elected b}^ the members of the Industry at a meeting called by the Temporary Supplementary Code Au- thority, and gives the Administrator the authority to a])point one additional member without vote and provides machinery for obtain- ing statistics and the administration of the Supplementary Code. Article V provides for formulation of cost finding and accounting methods capable of use by all members of the Industry. When approved by the Administrator, such methods shall be utilized by the Industi-y to the extent found practicable. Article VI prohibits selling below cost as determined in accord- ance with Article V, except to meet a competitor's price whose costs are lower under Article V; and except that dropped lines and sec- onds may be sold without restriction; and except that after notice (2) 3 to the Supplementary Code Authority, products of the Industry may be sold below cost to meet competition on products of equivalent design, character, quality or specification manufactured outside the United States. Article VII provides for the filing of prices with a confidential and disinterested agent of the Supplementary Code Authority and also provides for the filing of revised prices. Article VIII sets forth the unfair trade practices of this Supple- mentary Code, observance of which is designed to mitigate unfair competition in this Division of the Industry. Article IX defines the term " export " to include shipments to countries other than continental United States, and states that pro- visions of this Supplementary Code concerning pricing and market- ing do not apply to export sales. Article X provides for modifications in accordance with subsec- tion (b) of Section 10 of the Act, and also for modifications on the basis of experience. Article XI provides against monopolistic practices and the oppression of, or discrimination against, small enterprises. Article XII recognizes that price increases be limited to actual additional increases in the seller's costs. Article XIII gives the effective date and duration of this Sup- plementary Code. FINDINGS The Assistant Deputy Administrator in his final report to us on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter: We find that: (a) Said Supplementary 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 w^iich tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zation 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 sanction 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 Industry normally employs not more than 50,000 em- ployees: ajid is not classified by me as a major industry. (c) The Supplementary 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 association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplementary Code. For these reasons, therefore, The National Industrial Recovery Board approves this Supplementary Code. Respectfully, Naitonal Industrial Recovery Board, G. A. Lynch, Administrative Officer. October 9, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FILE MANUFACTURING INDUSTRY A Division of the Fabricated Metal Products Manutacturing and Metal Finishing and Metal Coating Industry Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the File Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Competi- tion for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by the President of the United States on the 2nd day of November, 1933, and the pro- visions of this Supplementary Code shall be the standards of Fair Competition for such Industry and shall be binding upon every member thereof. Article II — Definitions The term " File Manufacturing Industry ", hereafter referred to as the Industr}^ is defined to mean the manufacture for sale of all types and shapes of files, including Swiss Pattern files, rasps, rifflers, scrapers, file brushes and handles, excepting manicure files, rotary files and burs. The term " employee " as used herein includes anyone engaged in the Industry in any capacity receiving compensation for his serv- ices, irrespective of the nature or method of payment of such com- pensation. The term '"' employer " as used herein includes anyone by whom any such emi^loyee is compensated or employed. The term " member of the Industry " as used herein includes, but without limitation, any individual, partnership, association, corpora- tion or other form of enterprise engaged in the Industry either as an emploj'er or on his or its own behalf. The terms "" President ", "Act ", "Administrator " as used herein shall mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. The term " Basic Code ", as used herein, is defined to mean the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, as approved by the President on the 2nd day of November, 1933. The term " Supplementary Code Authority " as used herein, is defined to mean the agency to administer the Supplementary Code. The term " Supplementary Code Committee," as used herein is defined to mean the Executive Committee of the Association. (5) The term "Association " as used lierein is defined to mean tlie File Manufacturers Association of tlie United States, or its successor. The term " Secretary " as used herein, is defined to mean the Secretary of the Supplementary Code Authority. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Man- ufacturing and Metal Finishing and Metal Coating Industry, and without limitation the wage, hour and labor provisions in Article III of its Basic Code as approved by the President Xovember 2nd, 1933, including Section I of said Article III, by which the provisions of subsection 1, 2 and 3 of Section 7 (a) of Title I of the Act are made conditions of this Code, are specifically incorporated herein and made part hereof as the wage, hour, and labor provisions of this Supplementary Code. Article IV — Organization and Administration Section 1. During the period not to exceed sixty (60) days fol- lowing the effective date of this Supplementary Code, the Supple- mentary Code Committee of the Industry shall constitute a Tem- porary Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of 5 members to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten days' notice sent by registered mail to all members of this Industry whose names may be ascertained after diligent search, who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following Annual Meeting of the Association, and thereafter, members of the Supple- mentary Code Authority shall be elected by the members of the In- dustry at a meeting of the Industry to be held at the time and place of each Annual Meeting of the Association to serve until the follow- ing Annual Meeting. The members of the Supplementary Code Authority shall be elected in the following maimer : (a) One (1) member of the Industry who is not a member of the Association elected by majority vote of the non-members of the As- sociation, present in person or represented by proxy, each member to have one vote ; (b) Two (2) members who shall be members of the Industry elected by a majority vote of the members of the Association present in person or represented by proxy, each member to have one vote ; (c) Two (2) members by a 51% vote of members of the Associa- tion present in person or by proxy weighted on the basis of one (1) vote for $25.00 of Annual dues; provided, however, that no one membership ma}^ cast more than (25%) of the total number of votes authorized. A vacancy in the membership of the Supplementary Code Author- it}' shall be filled by majority vote of the remaining members of the Supplementary Code Authority. Provided, however, that the mem- ber of this Supplementary Code Authority who Is chosen to fill such vacancy shall be selected from the same class of membership in which the vacancy occurred. In addition thereto the Administrator may appoint a member of the Supplementary Code Authority who shall be without vote and shall serve without expense to the Industry. The representative who may be appointed by the Administrator shall be given reason- able notice of. and may sit at all meetings of the Supplementary Code Authority. Sectiox 2. Each Trade Association directly or indirectly partici- pating in the selection or activities of the Supplementary Code Au- thority shall (1) impose no inequitable restrictions on admission to membership, and (2) shall use due diligence in submitting to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amendments when made thereto, together with such other information as to membership, organization, and activi- ties as the Administrator may deem necessary to effectuate the purposes of the Act. Section 3. In order that the Supplementary Code Authority shall, at all times, be truly representative of the Industry 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 Supplementary Code Authority is not truly representative or does not in other respects comply with the provi- sions of the Act, may require an appropriate modification of the Supplementary Code Authority. Section 4. It being found necessary in order to support the Ad- ministration of this Supplementary Code and to maintain the stand- ards of Fair Competition established hereunder and to effectuate the policy of the Act the Supplementary Code Authority is authorized : — (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Supplementary Code ; (b) To submit to the Administrator for his approval, subject to such notice-and opportunity to be heard as he ma^' deem necessary : — • 1. An itemized budget of its estimated expenses for the foregoing purposes, and 2. An equitable basis upon which the funds necessary to support such budget shall be contributed by members of the Industry. (c) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and obtain equitable con- tribution as above set forth by all members of the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. Each member of the Industry shall pay his or its equitable con- tribution to the expenses of the maintenance of the Supplementary Code Authority, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Admin- istrator. Only members of the Industry complying with the Sup- plementary Code and contributing to the expenses of its Administra- tion as hereinabove provided, unless duly exempted from making such contributions, shall be entitled to participate in the selection 8 of members of the Supplementary Code Authority or to receive the benefits of any of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. The Code Authority shall neither incur nor pay any obligation substantially in excess of the amount thereof as estimated in its approved budget, and shall in no event exceed the total amount con- tained in the approved budget except upon approval of the Admin- istrator; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 5. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose. Nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent or employee of the Supplementary Code Authority, nor shall any member of the Supplementally Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his own wilful malfeasance or nonfeasance. Section G. The Supplementary Code Authority shall also from time to time furnish to the Basic Code Authority, designated in said Basic Code, such information as may be required to be furnished under the terms of said Basic Code. Section 7. If the administrator believes that any action of the Supplementary Code Authority, or any agency thereof, is imfair or unjust or contrary to public interest, the Administrator may re- quire that such action be suspended to afford an opportunity for investigation of the merits of such action. Further action by such Supplementary Code Authority or agency regarding the matter com- plained of, may be taken if approved by the Administrator but shall not be taken if disapproved by the Administrator within 30 days' notice to him of intention to proceed with such action. POWERS AND duties Section 8. Subject to such rules and regulations as may be isvsued by the Administrator, the Supplementary Code Authority shall have the following powers and duties, in addition to those authorized by other provisions of this Supplementary Code. (a) To insure the execution of the provisions of this Supplemen- tary Code and to provide for the compliance of the Industiy with the provisions of the Act. (b) To adopt By-Laws and Eules and Regulations for its pro- cedure in the administration of this Supplementary Code. (c) To obtain from members of the Industry such information and reports as are required for the administration of the Supple- mentary Code. In addition to information required to be sub- mitted to tlic Supplementary Code Authority, members of the In- dustry subject to this Sup])lementary Code shall furnish such sta- tistical information as the Administrator may deem necessary'' for the purposes recited in Section 3 (a) of the Act to such Federal and State Agencies as he may designate; provided that nothing in this 9 Supplementary Code shall relieve any member of the Industry of any existing obligation to furnish reports to any government agency. No individual report shall be disclosed, without consent in writing of the member making the report, to any other member of the In- dustry or to any one other than the Administrator or his duly au- thorized representative. (d) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Supplementary Code Authority of its duties and responsibilities under this Supple- mentary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof, (e) To make recommendations to the Administrator for the coor- dination of the administration of this Supplementary Code with such other codes, if any, as may be related to the Industry. (f) To recommend to the Administrator further fair trade prac- tice provisions to govern members of this Industry in their relations with each other or with other industries and to recommend to the Administrator measures for industrial planning, including stabiliza- tion of employment. (g) To appoint a Trade Practice Commitiee which shall meet with the Trade Practice Coimnittees appointed under such other Codes as may be related to the Industry for the purpose of formulat- ing fair practices to govern the relationships between production and distribution employers under this Code and under such otliers to the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other codes. (h) To provide appropriate facilities for arbitration of differ- ences between members of the Industry and, subject to the approval of the Administrator, to prescribe rules of procedure and rules to effect compliance with awards and determination. (i) Every employer shall provide for the safety and health of employees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the Supple- mentary Code Authority to the Administrator within three montlis after the effective date of this Code. Section 9. To the extent permitted by the Act and subject to such rules and regulations as tlie Administrator may prescribe, any and all information furnished to the Supplementary Code Authority by any member of this Industry pursuant to the provisions of this Supplementary Code shall be subject to verification by an impartial agenc}^ agreed upon by the Supplementary Code Authority and the member of the Industry in question, and, failing such agreement, such impartial agency shall be selected by the Administrator, which impartial agency may check so much of the pertinent books, accounts, and records of such member of the Industry as may be required to verify the accuracy of the information so furnished. Section 10. To the extent permitted by the Act and subject to such rules and regulations as the Administrator may prescribe, the Supplementary Code Authority shall have the power to investigate all complaints of alleged violations of this Supplementary Code filed with it by one member of this Industry against another member of the Industry. 10 Article V — Accounting and Costing The Siipplcmentai'v Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all mem- bers of the Industry and shall submit such methods to the Adminis- trator for review. If approved by the Administrator, full informa- tion concerning such methods shall be made available to all members of this Industry. Thereaft