Approved Code No. 84. Supplement No. 1 Registry No. 1123—08 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE METALLIC WALL STRUCTURE INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON JANUARY 10, 1934 WE DO OUR PART UNIV. OF FL Lli. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For Bale by the Superintendent of Documents, Washington, D.C. Price 5 cents This publication is for sale by the Superiulendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Conmierce, 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. 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Supplement No. 1 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE METALLIC WALL STRUCTURE INDUSTRY As Approved on January 10, 1934 ORDER APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE METALLIC WALL STRUCTURE 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 I of Article VI of 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 Metallic Wall Structure Industry; and hearings having been duly held thereon; and the annexed report on said SujDplementary Code, containing findings with respect thereto, having been made and directed to the I^rcsiQGiitj ' NOAV, 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 incorporate by reference said annexed report and do find that said 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 Code of Fair Competition be and it is hereby approved. Hugh S. Johnson, Administrator for InditstriaZ Recovery. Approval Recommended : Malcolm Muir, Division Administrator. Washington, D.C, Januai^ 10, 193 Jf. 82448°— 318— 59 34 (1) The President, The White House. Sir : This is a report on the Supplementary Code of Fair Compe- tition for the Metallic Wall Structure Industry, a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, and on the hearing conducted thereon in Washington, D.C., December 22, 1933, in accordance with the pro- visions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Metallic Wall Structure 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 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 Supple- mentary 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 consist- ing of seven members of which five shall be elected by the membere of the National Steel Partition Association or its successor, and tw^o shall be elected by members of the Industry who are not members of the Association, if any, and gives the Administrator the authority to appoint one additional member without vote and provides ma- chinery for obtaining statistics and the administration of this Code. Article V sets forth the fair trade practices of this Supplementary Code which has been especially designed to effect fair competition in this division of the Industry. Article VI contains the mandatory provisions contained in Sec- tion 10 (b) of the Act and also provides for the submission of pro- posed amendments to the Code. Article VII provides against monopolies and monopolistic prac- tices. Article VIII recognizes that price increases be limited to actual additional increases in the seller's costs. Article IX states the effective date of tliis Supplementary Code. (2) FINDINGS The Assistant Deputy Adminstrator in his final report to me on said Code having found as herein set forth and on the basis of all the proceedings 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 organ- ization 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 purchas- ing 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 association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable restriction 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 elimi- nate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Code, For these reasons, therefore, I have approved this Supplementary Code. Respectfully, Hugh S. Johnson, A dininistrator. Jamuary 10, IQSlp. Digitized by tine Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/supplementarycod6591unit SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE METALLIC WALL STRUCTURE 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 submitted as a Supple- mentary Code of Fair Competition for the Metallic Wall Structure Industry, pursuant to Article VI of the Basic Code of Fair Compe- tition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved by the President of the United States on the second day of November 1933, and upon approval by the President shall be the standard of fair competition for this Industry and shall be binding upon every member thereof. Article II — Definitions Section 1. The term " Metallic Wall Structure Industry " as used herein includes the manufacture and/or sale of installations of Me- tallic AVall Structures as defined hereinafter and/or the manufacture and/or sale by manufacturers of parts for use in such installations. Sec. 2. The term " Metallic Wall Structure " as used herein means any structure such as is commonly employed to subdivide the inte- riors of buildings, such as partitions, railings, etc., which are made up of separately erectable units and include steel panels and/or sup- porting or framing members of the type known as pressed or form rolled or tubular or hollow metal, extending either vertically or hori- zontally, and panel fillers or stretchers of steel, glass, wallboard, wire mesh, etc., supported thereby as well as fittings, stampings, doors, transoms, sash, and accessories for use in connection therewith. Sec. 3. The term " Member of the Industry " includes, but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the industry, either as an em- ployer or on his or its own behalf. Sec. 4. The terms " President ", "Act ", and "Administrator " as used herein mean, respectively, the President of the United States, Title I of the National Industrial Recovery Act, and the Adminis- trator for Industrial Recovery. Sec. 5. The term " Basic Code " as used herein is defined to mean the basic code of fair competition for the Fabricated Metal Products (5) Manufacturing and Metal Finishing and Metal Coating Industry as aiDproved by the President on the second day of November 1933. Sec. 6. The term " Supplementary Code Authority " as used herein is defined to mean the agency established to administer this Supple- mentary Code. Sec. 7. The term "Association " as used herein is defined to mean the National Steel Partition Association. Sec. 8, The term "Agent " as used herein is defined to mean a sales agent who represents a member of the industry as an employee in the placement of contracts and/or contacts the public on behalf of a member of the Industry. Article III — Emplotment Provisions Section 1. This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor ])rovisions of its Basic Code as approved by the President are the labor provisions of this Supplementary Code. Article IV — Organization and Administration The Supplementary Code Authority is hereby constituted to co- operate with the Administrator in the administration of this Supple- mentary Code. Section 1. The Supplementary Code Authority shall consist of seven (T) members, five (5) of whom shall be elected by the mem- bers of the Association on or before the effective date of this Supple- mentary Code and two (2) of whom shall be elected by members of the Industry who are not members of the Association, if any. In the event the nonmembers fail to elect either of the latter two within a reasonable time such vacancy shall be filled by the balance of the Supplementary Code Authority. In addition thereto there may be one (1) member appointed by the Administrator who shall be with- out vote, and may attend all meetings and shall be given reasonable notice thereof. Sec. 2. Each trade or industrial association, directly or indirectly participating in the acti^dties of the Supplementary Code Authority, shall (a) Impose no inequitable restriction on membership. (b) Submit 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 activities as the Administrator may deem necpssary to effect the purposes of the Act. Sec. 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. Sec. 4. Nothing contained in this Supplementary Code shall con- stitute the members of the Supplementary Code Authority partners for any purpose. POWERS AND DUTIES Seo. 5. The Supplementary Code Authority shall have the follow- ing duties and j)owers : (a) To elect officers and to assign to them such duties as it may consider advisable and to provide rules for its procedure and its continuance as the administrative agency of this Supplementary Code, in accordance with the terms of the Act and the principles herein set forth. (b) To delegate to such trade associations and other agencies as it deems proper the carrying out of any of its activities provided for herein, and to pay such agencies the cost thereof, provided that such agencies shall at all times be subject to and comply with the provisions of this Supplementary Code, and provided further that nothing contained herein shall relieve the Supplementally Code Authority of its responsibilities under this Supplementary Code. (c) To coordinate the administration of this Supplementary Cede with such other Codes, if any, as may be related to this Industry, or any subdivision thereof, with a view to promoting joint and harmonious action upon matters of common interest. (d) To delegate an impartial agency to make surveys, to compile reports, to collect statistics and trade information, to investigate unfair trade practices, to make recommendations for fair trade practices, and otherwise assist the Administrator in effecting the purposes of this Supplementary Code and the Act. (e) To cooperate with the Administrator in regulating the use of the N.E.A. insignia solely by those employers who have assented to this Supplementary Code and have paid their proportionate share of the cost of administering this Supplementary Code. (f) No member of the Industry shall be entitled to participate in or share the benefits of the activities of the Supplementary Code Authority or participate in the selection of the members thereof unless he assents to and complies with the requirements of this Sup- plementary Code and sustains his reasonable share of the expense of its administration. The reasonable share of the expense of administration shall be determined by the Supplementary Code Authority, on the basis of volume of business and/or such other equitable factors as the Sup- plementary Code Authority may determine, subject to the approval of the Administrator. (g) To report, as the Basic Code, Article IV, Section 1, may re- quire, to the Fabricated Metal Products Federation or its successor organization. (h) To set up credit bureaus and subdivisions for the collection of bad accounts. (i) To have such other powers and duties consistent with the Act as may be necessary for the complete administration of this Supple- mentary Code. Sec. 6. If the Administrator shall determine that any action of a Supplementary Code Authority or any agency thereof is mifair or 8 unjust or contrary to the public interest, the Administrator may require that such action be suspended for a period of not to exceed thirty days to afford an opportunity for investigation of the merits of such action and further consideration by such Supplementary Code authority or agency pending final action, which shall be taken only ujx>n approval by the Administrator. Article V — Trade Practices Any member of the Industry who shall directly or indirectly, through any officer, employee, agent, or representative, use or employ any of the unfair methods of competition set forth in Article V of the Basic Code, or in Article V of this Supplementary Code, shall be guilty of a violation of this Supplementary Code. It shall be an unfair trade practice for any member of the Industry : Section 1. To fail to comply with the following provisions for ac- counting and costing with respect to that portion of his product which is within the Industry. Every member shall use an account- ing system for the purpose of determining allowable cost which conforms to the principles of, and is at least as detailed and complete as, the uniform method of accounting, and the uniform method of costing, to be formulated by the Supplementary Code Authority, subject to the approval of the Administrator with variations there- from as may be required by the individual conditions affecting any member or group of members, and as may be approved by the Sup- plementary Code Authority and the Administrator. Sec. 2. To sell or exchange any product of the Industry at a price or upon terms and conditions which will result in the purchaser 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. Provided further, however, that a member of the industry may sell below his own cost to meet the competition of a lower cost producer of products of equivalent design, quality, or specifications, provided that when a member of the industry sells, or wishes to sell below his own cost to meet such competition, he shall so report to the Supplementary Code Authority and shall cite the competition which caused him to take this action. Sec. 3. To fail to comply with the following provisions for the publication of prices : (a) Each member of the Industry shall within five days of the effective date of this Supplementary Code publish a complete price list of the products of the Industry offered tor sale by him, showing all prices, terms and discounts, and copies of this price list and/or discount sheets shall be filed with the Supplementary Code Author- ity, who shall immediately send copies, or portions thereof, to all other members of the Industry who have assented to and are com- plying with this Supplementary^ Code and have filed price lists covering similar items. Such price lists and terms and conditions of sale so filed with the Supplementary Code Authority shall be open to inspection at all reasonable times by any interested party. (b) New and/or revised price lists and/or discount sheets and/or additions thereto may be filed at any time thereafter with the Supplementary Code Authority by any member of the Industry to become elFective on the date specified therein, but such price lists and/or discount sheets shall be filed with the Supplementary Code Authority ten (10) days in advance of said effective date. (c) Copies of such price lists and/or discount sheets or portions thereof, with notice of the effective date specified therein, shall be immediately sent to all members of the Industry who have filed price lists on similar articles and who are cooperating in this Sup- plementary Code, who thereupon may file revisions of their own published price lists and/or discount sheets, provided that their re- vision is not for a lower price or on more favorable terms than that set forth on the revised price list first filed, and said revision shall become effective upon the date when the said revised price list and/or discount sheets first filed shall go into effect. (d) No member of the Industry shall sell, directly or indirectly, by any means whatsoever, anj^ product of the Industry at a price or at a discount or on terms of payment other than those provided in his published price list and/or discount sheets. (e) In any event a member of the Industry must certify to the Supplementary Code Authority in the submission of all lists that the prices therein set forth, with any discounts thereon, will not cause the sale of the product below his own allowable cost, except as here- inbefore provided. (f) A tabulation of all bids which on account of bid bonds or other reasons will remain effective beyond the effective date of any new or revised list shall be submitted on or before such effective date to an impartial agenc}^ to be designated by the Supplementary Code Authority. Sec. 4. To fail to use such standard form of price lists including the classification and designation of all items to appear thereon, as may be authorized by the Supplementary Code Authority and ap- proved by the Administrator, and to fail to file within ten (10) days of such authorization his price list and discounts in the form required. Sec. 5. To sell or offer for sale any product of the Industry not on his published price list, without first reporting such intended sale to the Supplementary Code Authority, at least five (5) days in advance. Sec. 6. To fail to file with such impartial agency as the Supple- mentary Code Authority may designate, reports of such transactions as may be required, in the manner and form and at the time required. Sec. 7. To quote a lump sum price, including any items not in accord with or included in his published price list. All quotations shall show separate prices for the products quoted in accord with the price list separate from the products of other Industries. In no case shall it be made a condition of the proposal or sale that a lower price will eventuatfi by purchasing said products in combination. Sec. 8. To permit any employee whether paid on commission or otherv.'ise to divide or offer to divide his commission, allowance, or other compensation with a purchaser or prospective purchaser either directly or indirectly, or give any commission or allowance to a consumer or purchaser. 10 Sec. 9. To make any sale or offer of sale of any product of the Industry, under any description which does not fully describe such product in terms customarily used in the Industry, as determined by the Supplementary Code Authority. Sec. 10. To voluntarily cancel in whole or in part, or permit the cancellation in whole or in part, of any contract of sale of any product unless the credit allowed for such cancellation shall permit the portion of the contract actually furnished to be priced in accord- ance with the published price for such quantity, plus a fair consider- ation for all work done or service performed in connection with such cancellation. Sec. 11. To assume or offer to assume any resj^onsibility, and/or replace any spoiled materials and/or accept any back-charges per- taining to any phase of erection or any accessories, in connection with a sale or offer for sale of any metallic wall structure, or part thereof, other than installed complete, unless such responsibility is definitely and specifically fixed by the terms of the offer for sale and contract of sale. Sec. 12. To submit any samples in excess of 25 sq. ft. in area other than on premises regularly occupied by the member, unless the member has received an order for such material at his regularly established prices or received specific approval from the Supple- mentary Code Authority. Sec. 13. To quote alternates as lump-sum prices where the require- ments of a buyer are determined by specific plans and specifications unless the alternates be required by the plans or specifications. Al- ternates, other than those required by the plans and specifications, may be quoted as additions to or deductions from a required lump- sum price, provided the nature of the deviations from the specifica- tions or plans is fully and distinctly set forth. Sec. 14. To enter into term contracts covering a definite period of time for indefinite quantities of metallic wall structures, without provision for reimbursement for future increases in cost of labor, material or overhead expenses over those current at time contract is accepted. Sec. 15. To accept an order or contract except in a form as de- tailed and complete as that prescribed by the Supplementary Code Authority, and approved by the Administrator. Sec. Vo. To give a guarantee against defective materials and workmanship on materials sold, for more than one year from date of installation. Sec. it. To attempt to induce the breach of an existing contract between a competitor and his employee or customer or source of supply; nor shall any such member interfere with or obstruct the performance of such contractual duties or services. Sec. 18. To publish or circulate unjustified or unwarranted threats of legal proceedings which tend to or have the effect of harassing competitors or intimidating their customers. Failure to prosecute in duo course shall be evidence that any such threat is unwarranted or unjustified. Sec. 19. To sell or offer for sale, upon the specification or request of a purchaser, any product of the Industry which includes contours, designs, or parts not regularly tooled and manufactured without 11 including the cost of all tools, equipment, engineering services, and experimental set ups required to properly initiate the manufacture of such products. Sec. 20. To fail to register with the Supplementary Code Author- ity a list of the names and addresses of all agents. Article VI — 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 the provision of subsection (b) of Section 10 of the National Industrial Recovery Act, from time to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of this Act and specifically, but without limitation, to the right of the President to cancel or modify his approval of this Supplementary Code or any conditions imposed by him upon his approval thereof. Sec. 2. This Supplementary Code, except as to provisions required hj the Act, may be modified on the basis of experience or changes in circumstances; such modification to be based upon application tG the Administrator and such notice and hearings as he shall specify; and to become effective on approval by the President. Article VII — Monopolies No provision of this Supplementary Code shall be interpreted in such way as to permit conduct or operations tending to promote monopolies or to eliminate or oppress small enterprises, or to dis- criminate against them. Article VIII — Price Increases Section 1. Whereas the policy of the Act to increase real purchas- ing power will be made impossible of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual cost 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 IX — Effective Date This Supplementary Code shall become effective five calendar days after its approval by the Administrator and shall continue in effect until June 16, 1935, or the earliest date prior thereto on which the President shall, by proclamation, or the Congress shall, by Joint Resolution, declare that the emergency recognized by Section I of the National Industrial Recovery Act has ended. Approved Code No. 84. Supplement No. 1. Registry No. 1123/08 o UNIVERSITY OF FLORIDA 3 1262 08855 6591