Approved Code No. 84 — Supplement No. 11 Registry No. 1610—07 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TACKLE BLOCK MANUFACTURING INDUSTRY AS APPROVED ON MARCH 26, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sal= by tho 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. Cbarleston. 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. 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Approved Code No. 84 — Supplement No. 11 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TACKLE BLOCK MANUFACTURING INDUSTRY As Approved on March 26, 1934 ORDER Approving Supplementary Code of Fair Competition for the Tackle Block 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 of the National Industrial Recovery Act, approved June 16, 1933, and in accordance with the provisions of Section I of Article VI of the Basic Code for the Fabricated 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 Tackle Block Manufacturing Industry, and hearing having been duly held thereon ; and the annexed report on said Supplementary Code, containing findings with respect thereto, having been made and directed to the ^Pfpsi cl^nt * NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the Presi- dent, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporated by reference said an- nexed report and do find that said Supplementary Code complies in all respects with the pertinent provisions and will promote the pol- icy and purposes of said Title of said Act; and do hereby order that said Supplementary Code of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VII, Paragraph (a), insofar as they prescribe a waiting period between the filing with the Code Authority and the effective date of revised price lists or revised terms and conditions of sale be and they are hereby stayed pending my further Order either within a period of sixty days from the effective date of this Supplementary Code or after the completion of a study of open price associations now being conducted by the National Recovery Administration. Hugh S. Johnson, Administrator for Industrial Recovei^y. Approval recommended : A. R. Glancy, Division Administrator. Washington, D.C., March 26, WU. 49061° 425-154 34 (1) REPORT TO THE PRESIDENT The President, The White Home. Sir: This is a report on the Supplementary Code of Fair Competi- tion for the Tackle Block 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.. January 23, 1934, in accordance with the pro- visions of Title I of the National Industrial Recovery Act. GENERAL STATEB1 EXT The Tackle Block Manufacturing Industry, being truly representa- tive 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 practice, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by you on the second day 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 three (3) members, to be elected at a meeting called by the Temporary Code Authority, and gives the Administrator the au- thority to appoint one additional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. Article V provides for an accounting system and methods of cost finding and/or estimating. Article VI provides for determining the lowest reasonable cost of the products of this Industry. Article VII provides methods of setting up and revising price lists. ' Article VIII sets forth the unfair trade practices of this Sup- plementary Cede which lias been especially designed to offset unfair competition in this division of the Industry. Article IX provides against monopolies and monopolistic prac- tices. Article X contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for the submission of proposed amendments to the Supplmentary Code. Article XI recognizes that price increases be limited to actual additional increase in the seller's costs. Article XII states the effective date of this Supplementary Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all 1 nroceedings in this matter : I 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 which tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zation of industry for the purposes 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 Industry normally employs not more than 50,000 em- ployees ; and 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 applicant group is an industrial group 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, I have approved this Supplementary Code. Respectfully, Hugh S. Johnson, Administrator. March 26, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TACKLE BLOCK MANUFACTURING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING 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 Tackle Block Manufac- turing Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Coating Industry, approved by the President of the United States on the second day of November 1933, and the provisions of this Supplementary Code shall be the standard of fair competition for and shall be binding upon every member thereof. Article II — Definitions Section 1. The term "Tackle Block Manufacturing Industry" means the manufacture for sale of a general line of tackle or pulley blocks for Manila or "Wire Rope by the manufacture. Section 2. The terms " President ", "Act ", and "Administrator " as used herein shall mean respectively the President of the United States, the National Industrial Recovery Act, and the Administrator for Industrial Recovery. Section 3. The term " employee " as used herein includes anyone engaged in the Industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation. Section 4. The term " employer " as used herein includes anvone by Avhom any such employee is compensated or employed. Section 5. The term "member of the industry "as used herein includes but without limitation any individual, partnership, associ- ation, corporation or other form of enterprise engaged in the industry either as an employer or on his or its own behalf. Sec in in 6. 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 of the United States on the second day of November, 1933. Section 7. The term " Supplementary Code Authority " as used herein means the agency which is to administer this Supplementary Code as hereinafter provided. Section S. The term "Supplementary Code Committee ,n as used herein is defined to mean the Tackle "Block Industry Committee (4) formed and appointed by the members of the Industry to present this Supplementary Code. Section 9. The term " Federation " as used herein is defined to mean the Fabricated Metal Products Federation or its successor. 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 November 2, 1933, including Section 1 of said Article III by which the provisions of Sub-sections (1), (2), and (3) of Section 7 (a) of Title I of the Apt are made conditions of this Code, are specifically incorporated herein and made a 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 the Supplementary Code Committee of the Industry shall constitute a temporary Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplemen- tary Code Authority consisting of 3 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 regis- tered mail to all known members of the Industry, who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until their successors are elected. The members of the Supplementary Code Authority shall be elected in the following manner : (a) 3 members by fifty-one percent vote of members of the In- dustry, present in person or by proxy, weighted on the basis of one vote for each member and one additional vote for each 10 employees, or fraction thereof, engaged in the Industry, in the previous calen- dar year reported to the temporary Supplementary Code Authority; provided, however, that no one member may cast more than 33^3 percent of total number of votes cast. A vacancy in the membership of the Supplementary Code Author- ity may be filled by majority vote of the remaining members of the Supplementary Code Authority; provided, however, that the right to vote, as set forth above, shall be subject to the limitations provided in Section IV of this Article. In addition to the members above provided the Administrator may appoint one member with- out vote to serve on the Supplementary Code Authority. Section 2. Any Association directly or indirectly participating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator such information as to membership, organization and activities 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 pro- visions of the Act, may require an appropriate modification in the method of selection of the Supplementary Code Authority. Section 4. All members of the Industry are subject to the juris- diction of the Supplementary Code Authority; and all members assenting thereto shall be entitled to participate in and share the benefits of the Supplementary Code Authority; shall be entitled to vote in the selection of members of the Supplementary Code Author- ity as provided in Section 1 of this Article, and shall pay their reasonable share of the expenses of the Administration of this Sup- plementary Code, such reasonable share to be determined by the Supplementary Code Authority, subject to review and approval by the Administrator on the basis of volume of business and/or such other factors as may be deemed equitable by the Supplementary Code Authority. Section .">. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose. Section 6. 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 terms of said Basic Code. Section 7. The Supplementary Code Authority shall have the following further powers and duties ; (a) To insure the execution of the provisions of this Supplemen- tary Code and provide for the compliance of the industry with the provisions of the Act subject to such rules and regulations as the Administrator may prescribe. (b) To adopt by-laws and rules and regulations for its procedure and for the administration and enforcement of the Supplementary Code. (c) To obtain from members of the industry such information and reports as are required for the administration of the Supplementary Code, which information and reports shall be submitted by members to such administrative and/or government agencies as the Admin- istrator may designate: provided that nothing in this Supplementary Code shall relieve any member of the industry of any existing obli- gations to furnish reports to any government agency. No individual reports shall be disclosed to any other member of the industry or any other party except to such governmental agencies as may be directed by the Administrator. (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 or 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 coordination of the administration of this Supplementary Code with such other codes, if any, as may be related to the industry. (f) To secure from members of the industry an equitable and proportionate payment of the reasonable expenses of maintaining the Supplementary Code Authority and its activities. (g) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those members of the industry who have assented to, and are complying with, this Supplementary Code. (h) To recommend to the Administrator further fair trade prac- tice provisions to govern members of the 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. (i) If the Administrator shall determine that any action of a Code Authority or agency thereof may be unfair or unjust or con- trary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and for the consideration by such Code Authority or agency pending final action which shall not be effective unless the Administrator approves or unless he shall fail to disap- prove after thirty day.-;' notice to him of intention to proceed with such action in the original or modified form. Article V — Accounting and Costing With respect to that portion of his product which is within the industry, every member of the Industry shall use an accounting system for determining his allowable cost which conforms to the principles of the uniform method of accounting, and the uniform method of costing, to be formulated by the Supplementary Code Authority and approved by the Administrator with such variations therefrom as may be required by the individual conditions affecting any member or group of members of the Industry, and as may be approved by the Supplementary Code Authority and the Administrator. Article VI — Selling Below Cost No member of the Industry shall sell or exchange any product of the Industry with respect to which minimum net prices and/or max- imum discounts have been filed in accordance with Article VII, at a price or upon terms and conditions, which will result in the pur- chaser paying for the goods received, less than the allowable cost thereof to the seller, determined in accordance with a uniform method of costing above described, based upon total cost of each line for par- ticular type or style of tackle blocks; provided, however, that dropped lines, or seconds, or inventories which must be converted into cash to meet emergency needs may be disposed of by any member of the Industry, at any price and on any terms and conditions, but only if such member of the Industry has filed with Supplementary Code Authority a statement in writing, setting forth the fact of, and rea- sons for, such proposed disposal, and provided further, any member of the Industry may sell below his costs in order that he may meet competitive prices filed in accordance with the provisions of Article VII of this Supplementary Code, or to meet competition from prod- ucts of equivalent design, character, quality, or specifications, manu- factured outside the United States. Article VII — Price Lists (a) Each member of the Industry shall within ten (10) days after the effective date of this Supplementary Code, file with the Supple- mentary Code Authority a copy of his catalog together with his net price list, and/or his discount sheet applying to his catalog as used by such member in the trade, as the case may be, individually pre- pared by him, and in such form and for such products as the Supple- mentary Code Authority may prescribe showing his current prices, or prices and discounts, and terms of sale and payment, and the Sup- plementary Code Authority shall immediately send copies thereof to all known manufacturers of such specified product. Revised net price lists and/or maximum discount sheets and/or all other conditions of sale shall be filed from time to time thereafter with the Supplementary Code Authority by any member of the Industry, to become effective upon the date specified therein, but such revised net price lists and/or discount sheets and/or all other conditions of sale shall become effective ten (10) days after the filing thereof with the Supplementary Code Authority. Copies of such revised net price lists and/or maximum discount sheets and/or all other conditions of sale with notice of the effective date specified, shall be immediately sent to all known manufacturers of such prod- uct, any of whom may file if he so desires, to become effective upon the date when the revised net price list and/or maximum discount sheet and/or all other conditions of sale first filed shall go into effect, revisions of his net price lists, and/or maximum discount sheets and/or all other conditions of sale establishing prices or prices and discounts not lower or conditions of sale not more favorable than those established in the revised net price lists and/or maximum dis- count sheets and/or all other conditions of sale first filed. Current price lists shall be available to all interested parties. 1 (b) The Supplementary Code Authority shall have the power to require any member of the Industry to furnish it such information as it may require to determine that the price lists and/or discount sheets filed by a member of the Industry are not below his allowable costs as determined in accordance with the provisions of Article V hereof. Each member of the Industry shall furnish the Supplementary Code Authority for distribution with such number of copies of his catalog and his net price lists and/or maximum discount sheets as Supplementary Code Authority may prescribe. (c) No member of the Industry shall sell directly or indirectly, by any means whatsoever, any product of the industry with respect to which lists and maximum discounts and/or minimum net prices have been filed as provided in Article VII at lower prices or at greater discounts, or on other conditions of sale different from those 1 See paragraph 2 of order approving this Code. 9 provided in his own current net price lists, or price lists and maxi- mum discount sheets as filed. (d) Nothing in Article VII of this Supplementary Code shall apply to sales between members of the industry, provided however that no sales shall be made below cost. (e) Terms of credit shall not be allowed for a greater length of time, or upon a more favorable basis than follows : (1) Two (2) percent discount from the net amount of the invoice, for payment within ten (10) days from date of invoice, except in the case of shipments to the states of California, Oregon and Wash- ington, in which cases two (2) percent discount for payment within fifteen (15) days from date of invoice may be allowed: "Date of Invoice " meaning date of shipment. (2) Except that upon request by a customer, two discount periods per month may be allowed by members as follows: Two (2) percent cash discount may be deducted from the net amount of all invoices dated from the 1st to the 15th day of any month, if payment is made by the 25th of the same month, and on invoices dated from the 16th of the month to the end of the month if paid by the 10th of the next month. In the granting of these terms on shipments to California, Oregon and Washington, the payment date may be extended five days, that is, to the 30th of the current month, and 15th of the next month, in lieu of the payment date specified above. (3) Invoices allowed to run beyond the discount period provided above, shall be due net in thirty days from date of invoice. (4) The offering of more favorable terms of credit than provided above, is declared to be an unfair trade practice and a violation of this Supplementary Code. (f) No provision of this Supplementary Code relating to prices or terms of selling, shipping, or marketing shall apply to export sales or shipments for export trade within the meaning of the term " export trade ", as is used in the Export Trade Act ; provided, how- ever, that exceptions due to particular circumstances shall be sub- mitted to the Supplementary Code Authority for its consideration and determination, and its decision shall be subject to the approval of the Administrator. Article VIII — Unfair Trade Practices The Unfair Trade Practices covered by Article V of the Basic Code, with the exception of Section "A" thereof, which is covered by provisions of this Supplementary Code, for all purposes of this Supplementary Code shall constitute unfair practices. Any mem- ber of the Industry who shall directly or indirectly, through any officer, employee, agent or representative, use or employ any of such unfair practices, described in Article V of the Basic Code, excepting Section "A" thereof, shall be guilty of a violation of this Supple- mentary Code. Article IX — Monopolies No provision of this Supplementary Code shall be applied so as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. 10 Akticle X — Modifications Section 1. This Supplementary Code and all the provisions thereof are expressly made subject to the right of the President, in accord- ance with provisions of subsection (b) of Section 10 of the Act, from time to time to concel or modify any order, approval, license, rule or regulation issued under said Act. Section 2. This Supplementary Code, except as to provisions re- quired by the Act, may be modified on the basis of experience or changes in circumstances, such modifications to be based upon appli- cation, by the Supplementary Code Authority to the Administrator and such Notice and Hearing as lie shall specify, and to become effective on approval by the President. Article XI — Price Increases Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price in- creases except such as may be required to meet individual costs should be delayed, but when made, such increases should, so far as possible, be limited to actual additional increases in the seller's costs. Article XII — Effective Date This Supplementary Code shall become effective at 12 : 01 o'clock A.M. on the tenth day after it is approved by the President. Approved Code No. S4. Supplement No. 11. Registry No. 101(^07. O UNIVERSITY OF FLORIDA 3 1262 08851 8104