Approved Code No. 347-Supplement No. 7 Registry No. 1399-54

NATIONAL RECOVERY ADMINISTRATION

SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE

BEATER AND JORDAN AND ALLIED EQUIPMENT

INDUSTRY (A Division of the Machinery and Allied Products Industry)

AS APPROVED ON MAY 14, 1934

WE DOOURP~

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WASHINGTON: 1934

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents

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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, Mas . : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, Ill.: 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, Tenn.: 229 Federal Building. Minneapolis, Minn.: 213 Federal Building. New Orleans, La. : Room 225-A, Customhouse. New York, N.Y.: 734 u tomhouse. Norfolk, Va. : 406 East Plume Street. Philadelphia. Pa. : 422 Commercial Trust Building. Pitt burgh, Pa.: Chamber of Commerce Building. Portland, Oreg. : 215 New Post Office Building. St. LouL, Mo.: 506 Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle, Wash.: 809' Federal Office Building.

Approved Code No. 347-Supplement No. T

SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

BEATER AND JORDAN AND ALLIED EQUIPMENT INDUSTRY

As Approved on May 14, 1934

ORDER

SUPPLEMENTARY CODE OF F AIR COMPETITION FOR THE BEATER & J ORDAN & ALLIED EQUIPME :rT INDUSTRY

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY

An application having been duly ma le 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 Sup­plemental Code o-f Fair Competition for the Beater & Jordan & Allied Equipment Subdivision of :Machinery and Allied Products Industry, and hearings having been duly held thereon and the an­nexed report on said Supple1nental Code containing findings with respect thereto, having been made and directed to the President:

O,V, 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 D ecember 30, 1933, and otherwise; do hereby incorporate by reference aid annexed report and do find that said Supplemental Code complies in all respects with the pertinent provi ion and will promote the policy and purpo es of said Title of said Act· and do hereby order that said Supplemental Code of Fair Competition be and it is hereby appro, ed subject to the following conditions:

1. That the Beater & Jordan & Allied Equipment ~1anufacturers As ociation hall amend its Article of A sociation to the sati fac­tion of the Administrator within the time set forth in the Order of the Admini trator, dated April 26, 1934, which order extended the original period of thirty (30) days set forth in the Executive Order of March 17 1934, approving the Basic Code of Fair Compe­tition for the ~1achinery and Allied Product Industry.

2. That the provi ion of Article VIII, Se.ction (a), in ofar as they prescribe a waiting period between the filing with the Code Authority ( or uch agency as may be designated in the Supplemental Code)

59024°-544-83-34 (1)

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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.

3. That the provisions of Article VIII, Section ( e) be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution of the products of the Subdivision to the Administrator.

HUGH s. JOHNSON' Administrator for Industrial Recovery.

Approval recommended: A. R. GLANCY,

Division Admini'strator. w ASHINGTON, D.C.,

May 14, 1934.

REPORT TO THE PRESIDE T

The PRE IDE T,

T Ji White II ouse. IR: Thi r port r late · t the Supplemental Code of Fair Com­

petition for the Beat r & Jordan & Allied Equipment Subdivision of Ma hinery and lli d Products Indu try as propo ed by the n at r & J or lan & Allied Equipment l\-fanufa turer ociation.

A public hearing wa held in ,¥" a hington, D. . on December 6, 1933 and reconvened on December 21, 1933. The public h arino-s were conducted in accordance with the provi ion of Title I of the National Industrial R e overy Act and all p r ons were given full opportunity to be heard.

GENER \L STATEMENT

The Beater & Jordan & Allied Equipment Subdivi ion, being truly repre entative of the manufacturers of the products defined in Article II of the Supplemental Code, ha elected to formulate and submit a Supplemental Code of Fair Competition a provided in the second paragraph of Article I of the Code of Fair Competition for the Machinery and Allied Products Indu try, approved by you on the se-, enteenth day of J\1arch, 1934.

The Subdivi ion as defined in the Supplemental Code include the manufacture and sale of beaters and jordans and allied equipment.

ECONOl\IIC EFFECT

Annual sales in 1932, according to the A ociation, were approxi­mately one-third the 1929 level. They declined from 5,185,000 in 1929 to $1,617,000 in 1932. The Subdivi ion ha estimated ales for 1933 to be $1,455,000, which indicates a decline of 10 per cent from the 1932 leYel.

E 'timates of approximate employment for the entire Sub livi ion submitte l by the Trade As ociation, indicate that employment decline l from 900 in 19:.9 to 454 in 1932, or 49.6 per cent. Employ­m nt in 1933 incr a ed to 5 3, or 28.4 per cent.

No figure are a ailable on the full-tim hour per week for the entire Subdi,i ion. A summarize 1 tabulati n of que tionnaire returne l by the indu try show that in June, 1929 the averao-e work­ino- time wa 8 to 11 hour per day; in June, 1933, to 10 hour per day; an 1 in Oct b r, 1933, 7 to 9 hours per lay. In October 1933, th ubdivi ion "a workino- two hift .

verarre hour per w ek wer report d to be 51.6 in June 19:..9; 43.5 in June 1933; and 39.7 in October 1933. In October, 1933 the averao- hout wer 23.1 per cent le than the June 1929 averao-e.

Th ffect of the 40-hour pro, ision with production at more nor­mal level may be e timate l on a ba i of the 1930-1931 average o:f

(3)

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total man-hours per week divided by the number of hours prescribed by the Code. After 1929, man-hours declined steadily from 46,440 to a minimum of 13,670 in 1932, or 70.6 per cent. Since then, man­hours have increased to 23,620, or 72.8 per cent.

If it is assumed that the 26,475 average man-hours for 1930-1931 are representative of the volume of production for those years, and a reasonable measure of man-hour requirements in a more normal period, the adoption of the 40-hour week would require a force 0£ approximately 660 employees, or 73 per cent of the 1929 working level.

However owing to the impossibility of all employees of the Subdi­vision working the maximum 40 hours, the average work week will be shorter, say 36 assumed effective hours, and the employment cor­respondingly greater, viz: 735 workers will be required to produce the 1930--1931 volume.

The minimum wage provisions proposed for the subdivisions which are operating under the Code of the Machinery and Allied Products Industry are based on a flat minimum hourly rate 0£ 32 cents per hour for the South and the following city population differentials for all other sections of the United States:

Over 50.000 population _________________________ 40 cents per hour Over 10,000 to 50,000 population ________________ 38 cents pet hour 10,000 population and under ___ __ _______________ 36 cents per hour

In addition to the minimum wage rates shown above, the Code provides that women engaged in sub tantially the same work as men shall receive the same rate of pay as such men employees; that the minimum wage for women employees employed in plant oper a­tions shall not be less than 87.5 per cent of the proper rate for the locality in which employed as specified; and that the minimum in the South shall be not less than 32 cents per hour.

E sUmated nwniber of factory workers rece'iving less than designated hourly rates

Propo~ed minimum hourly rate,g

40 cents (other U.S.) __ ------------ - --------------------------- ----------38 cents (other U.S. )_ ____________________________ ______________________ _ 36 cents (other U.S.) _____ ______________________________________________ _ 32 cents (Sou th) __ ___ __ ________________________________ ,_ ____________ ___ _ _

Distrihution of factory workers receiving less than the mini­mum regardless of location

Approximate Approximate percent number

44.4 39. 3 34. 7 20.9

150 132 117 70

Based on the distribution as of June 15, 1933 and on the specified percentages of the number of factory worker receiving le s than the designated rates shown in th above table, the adoption of the proposed minimum rates will probably can e an increa e in factory payrolls. The c tim ated increase as of June 15, 1933, r O'ardless of location of the workers , will probably, nnder the mo t favorable conditions, not ex eed 9.0 per cent assuming only upward adjn tment in the brackets below the 40 cent minimum and no change in man­hour requirements.

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RES ME OF UPPLEME ... TAL CODE

Article I tare the purpo e of the upplemental Co le. Arti le II ets forth c rtain d finitions. Article III provide -for the a loption of the empl yment pro­

vi ion of the ational Indu trial Recovery ode of the 1:achinery and Alli d Produ ts Indu try, a ap1 rove l by you n the eventeenth day of }tlar h 1933, and a from time to time am n led.

Article IV provid for the adoption of Arti le II, VI, VIII and IX of th ational Indu -trial Re ov ry Code of the ·Machin ry and Alli d Produ t Indu try in accordance with the onditi ns in this Articl gov rning th ir adoption.

Articl V provides for the e -tabli hment of a ode Authority and defines it pow rs and duties.

Arti le VI provide for the establi hment of a uniform accounting system and method of co t finding and/ or estimating to be u el by all employers in the Subdivi ion.

Article VII provides that no product of the Subdivi ion hall be sold or exchanged below a r ea onable cost when the Code Auth rity determines that an emergency exi ts.

Article VIII provide for the filing of price with the Code Au­thority and for the dis emination of price information by the Co le Authority.

Article IX defines certain trade practice a being unfair methods of competition and proYides that these practice be eliminat d.

Article X provides for the exclusion of direct export ales from the provi ions of the Supplemental Code concerning pri ·ing and 1narketino- of the products of the Subdivision.

Article XI contain the method by which the Code may be mo lified or amended.

Article XII contain the provi ion in reference to 1nonopolie and di crimination again t mall enterpri e required by the t.

Articl XIII tates the effective date of the Supplemental Code.

FINDINGS

T he i tant Deputy clmini tra tor in hi final report to me on aid Supplemental Code haYing foun l a herein ct forth and on the

ba js f all the proceeclino- in thi matter: I fin l that: (a) Said upplemental Code is well de igned to promote the poli­

cie and purpo ·e of Title I of the National Indu trial Re oYery ct, includino· removal of ob tru tion to the free flow of int r tate and f orei()'n commerce which tend to dimini h the amount ther of and will pr Yide for the o·eneral welfare by prom tino· the oro-anization of indu try for the purpo e of cooperative acti n am ng the trade o-roup by inclu ing and maintaining united action of labor and man­agem nt under a lequate goY rnmental anction and 111 erYi ion, b eliminatin unfair competitive practice b3 promotino· the full . t po ible utilization of th pr ent pro lu ti,e capacity of indu trie , b avoi ling undue re triction of pro luction ( except a may b tem­porarily require l) by increa inO' the con umption of indu trial and agricultural product through increa ing purcha ing power, by re-

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ducing 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 representative of the aforsesaid 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 permit n1onopolies or monopolistic practices.

( e) The Supplemental Code is not designed to and will not elim­inate or oppress small ente.rprises 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 Supplemental Code.

For the e reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication are stayed; that the Articles of Association of Applicant be revised as stated in the Order; and that Section ( e) of Article VIII be stayed pending submission of satisfactory evidence concerning dis­tribution of the products of the Subdivision to the Administrator.

Respectfully,

MAY 14, 1934.

HUGH s. JOHNSON,

Administrator.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE BEATER & JORDAN & ALLIED EQUIPMENT IN­DUSTRY

A DIVI ION OF THE MAGID E.l{Y A D ALLIED PR D

ARTI LE I-PURPO E

To effectuate the policy of Title I of the National Indu trial Recovery A t, the following provi ions are tabli h d a a up­plemental Code for the Beater & Jordan & Allied Equipm nt Manufacturing Subdivision of the Machinery and Allied Products Indu try and together with the ational Industrial R e overy o le of Machinery and Allied Pro luct Indu try to which it i a Supple­ment shall be the standard of fair comp tition for thi ubdivision, and shall be binding on each employer therein.

ARTICLE II-DEFI ITION

"Applicant ' means the Beater & Jordan & Allied Equipment Manufacturers Association of the Pulp and Paper Industry a trade organization, all members of which are engaged in the manufacture for sale of the products of the Beater & Jordan & Allied Equipment Manufactnrino- Subdivi ion of th Machinerv and Allied Products I?dustry, which organization i truly repre eiitative of this Subdivi-10n. "Industry" means the Machinery and Allied Product Indu try,

as defined in its r ational Industrial RecoYery Code a approved by the Pre ident March 17 1934 and as such definition may from time to time be amended.

" ubdi vision mean thi Beater & Jordan & Allied E quipment :Manufacturing subdivision of th l\1achinery and Allied Products Indu ry as defined and et forth in Paragraph 3 of rticle II of the ational Industrial Recovery Cod of the 1a hinery and lli d Product Indu tr a follow :

' Beater & Jordan & Allied Equipment Subdivi ion mean · the manufa ture for ale f Beat~r & J or lan & Allied Equipment and parts thereof and include all tho e engaged in uch manufacture for ale.

' ode means the ational Indu trial Recovery Code of the Ma­chinery and lli d Produc Indu try , a appro, el b the Pre ident, and a from time to time amen le l.

'Per on mean a natural p r on a partner hip a corpora ion an a ociation, a tru t a tru tee a tru t e in bankru ptc, a receiY r or other entit . ~

"Employer" mean any per on n aged in thi ubdiv; ion of the Indu try, either on his own behalf or a an emplo er of labor.

(7)

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"Employee " means any one who is employed in the subdivision by any such employer.

"The Act" means Title I of the National Industrial Recovery Act.

"The President" means the President of the United States. " The Administrator " means the Administrator for Industrial

Recovery. "Basic Code Authority " means the Code Authority for the 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 classification of products within this subdivision, consti­tuted under the authority of Article V of this Supplemental Code.

"Publish " means to make available to the public.

ARTICLE III-EMPLOYl\IENT PROVISIONS

The following Articles of the Code, viz : Article III, " Working Hours"; Article IV, "vVages "; and Article V, "General Labor Provi ions", are made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code.

ARTICLE IV-AnoPTION OF OTHER PROVISIONS OF ConE

The following Articles of the Code, viz : Article II, " Definitions "; Article VI, "Administration", to the extent that they shall be ap­plicable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; Article VIII, "Modifications and Termination"; and Article IX, "Withdrawal"; are made a part of thi Supplemental Code with the san1.e effect as if they were written into this Supplemental Code, except as herein modified.

ARTICLE V 1- ORGANIZATION AND AmvnNISTRATION

(a) To administer, supervise and facilitate the performance of the provisions of this Supplemental Code, there is hereby establi hed a Code Authority which shall consi t of not les than seven (7) nor more than nine (9) members, even (7) of whom are to be appointed by the Executive Committee of the Applicant.

1. One (1) additional member to be selected in any fair manner, with the approval of the Administrator, by employers in thi subdi­vision not members of the Applicant, who are cooperating under this Code as described in Section ( d) b'.ereof, if so lesired by uch non­members.

2. The Administrator may, at hi di cretion, appoint one ( 1) additional member without vote and without expen e to the Sub. division.

(b) The Code Authority shall adopt rule an l regulations for its procedure and employ uch per onnel as it may leem nece. ary.

( c) Any employer in this Subdivi ion hall b eligible f r mem­bership in the Appli ant.

1 See paragraph 2 ( 1) of order approv ing this Code.

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Any employer in thi Subdivi ion hall be entitled t vote ubject to provi ion · of ction (a) h reof at lection of and hare in, the benefi of the activitie of th Cod Auth rity and may parti ipate in any en l avor of the Applicant and o i Authority in the pr pa­ration of any revi i n of or addition or ui pl m nt to thi up­pl m ntal od , ubject to provi ion. f thi cti n (a) and ec­tion (d) of Articl V.

(d) Ea h employ r in thi ubdivi. i n, subj t t th juri di tion of thi upplemental Code and ac ptin o- th benefits of the a tivi­tie of the Cod Authority h r und r, shall pay to th ode Au­thorit hi proporti nate har of th amount nee ·ary to pay the co t of a emblino- analyzing and publicati n of uch r ports and data and of the maintenance of th C d Authority in onnection with it activitie r lative to the preparation and admini tration of thi uppl mental Code aid proportionat har to be ba ed upon the volume of shipm nt for the next prece ling al ndar year and/or • su h other factor a the Code Authority may prescribe and the Admini trator may approve.

( e) With a view to keeping the Pre ·ident informed, as to the observance or non-ob ervance of this Supplemental Code, and as to whether thi subdivi ion is taking appropriate t ps to effectuate the declared policy of the Act, each employer shall prepare and file with such per on or organization a Code Authority may designate, and at such tim and in uch manner as may b by Code Authority pre­scribed ( to be held and u ed subject to the limitation of thi Article V), statistics of plant capacity volume of production, volume of ale in unit and dollar , order received, unfilled orders, tock on

hand inventories "raw and fini hed' number of emplo:-5 ee ·, wage rate , employee earning· and hours of work and uch other data or information a the Code Authority, ubject to review by the A lmin­i trator, may from time to time require.

Code Authority hall file with the B asic Code Authority uch of the data and tati tical information referred to in preceding para­Q'Taph a may oo required.

In ad lition to information required to be ubmitted to Ba ic ode Authority, there hall be furni hed to Government ag ncie uch tati tical information a. the Admini trator may deem ne es ary for

the purpo e re ite i in ection 3 (a) of the A t. (£) Except a oth rwis prm ided in the Act all stati tic data

and information filed in ac orclance with the provision of thi up­pl m ntal Cod hall be confi lential; provided how v r, that noth­in o· her in hall pre, ent the publi ati n of eneral ummari of uch tati tic , data and information.

The stati tic data and information of one employer shall not be revealed to any other emplo) er e:xc pt that for th purpo e of admini t ring r facilitating the nforcement of the provi ions of thi upplemental Code 'ode uthorit , by it duly authorized r I re entative ( wh hall not be an emplo er nor in the employ f any emplo er aff ted by thi Supplemental od ) hall have

a to any ancl all tati ti data and information that may be furni he l in a ordance with the proYisions of thi Supplemental C l.

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(g) Aggregations of employers having a common interest and common problems may be gTouped by Code Authority £or a~minis­trative purposes. There shall be a Group Code Authority ap­proved or appointed by _Code Authority £or each_ such group ...

If formal complaint 1s made to Code Authority that prov1s10ns of this Supplemental Code have been violated by any employer, the Code Authority, or proper Group Code Authority, m3:y cause such investigation or audit to be made, to the extent pernntted by the Act, as may be deemed necessary. If such investigation is ma~e by Group Code Authority it shall report the results of such investi­gation or audit to Code Authority for action.

Code Authority shall have the right, to the extent permitted by the Act, to analyze any transaction coming under the scope of this Supplemental Code, on which any unfair competition is alleged, to show . evidence of any violation of this Supplemental Code, to report any such alleged violation to the proper authorities for

• action. (h) It is, however, expressly provided that the jurisdiction of

Code Authority under this Supplemental Code over any employer shall be limited to that portion of the business and employment of such employer which is within this Subdivision.

(i) In order that the Code Authority shall at all times be truly representative of the Subdivision and in other respects comply with the provisions of the Act, the Administrator may provide such hear­ing as he may deem proper; and thereafter if he shall find that the Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Code Authority, or any Group-Code Authority.

ARTICLE VI-AccouNTING AND CosTING

The Supplemental 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-REASON ABLE CosT

\Vhen the Code Authority determines that an emergency exists in this industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the maintenan e of the provisions of this Code, the Code Authority may cau e to be determined the lowest reasonable cost of the products of this indu -try, uch determination to be subject to such notice and hearing a the Administrator may require. The Administrator may approve, dis­approve, or modify the determination. Thereafter, during the period of the emergency, it shall be an unfair trade practice for any m m­ber of the industry to sell or offer to sell any products of the indu try for which the lowest reasonable cost has been determined at such

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prices or upon such term or conditions of sale that the buyer will pay less therefor than the lowest r asonable cost of such produ~ts.

Wh nit appears that onditions hav hanged, the _Code Authority, upon its own initiativ or upon the requ t of any interested party, shall cause the determination to be reviewed.

ARTICLE VIII-Pru E LrsTs

(a) If and wh n the Code Authority d termines that in any group of the Subdivi ion it has been the generally recognized practice to ell a p cified product on the ba is of net price list or price lists

with di count she ts and fix d terms of sale and payment, ach manufa turer of su h produ -t shall, within ten (10) day after notice of u h d termination, file with Code Authority a net pric~ Ii t, or a price Ii t with discount sh et, a the case may be, individu­ally prepared by him showing his current price or pri e and dis­·ount including f.o.b. points and terms of ale and payment, and the Code Authority shall immediately publish the same and end opies thereof to all known manufacturers of such specified products

who are cooperating in the admini tration of this Supplemental ode. Revised price Ii ts and/ or di count heets and/ or term of sale and

payment may be filed from time to time thereafter with the Code Authority by any manufacturer of such product, to become effective ten (10) days from date of filing with Code Authority, unle s Code Authority shall authorize a shorter period, and copies thereof with notice of the effective date specified, shall be immediately published and made available to interested parties and ent to all known manu­facturers of such product who are cooperating in the admini tration of this Supplemental Code, any of whom may file, if he o de ires, revisions of his price lists and/ or discount sheets and/ or term of sale and payment, which shall become effective upon the date when the revi ed price list and/ or di count and/ or terms of sale and pay­ment sheet first filed shall go into effect.2

(b) If and when Code Authority shall determine that in any group of the subdivision not now elling its product on the ba is of price lists and/ or discount sheets, with fixed terms of sale and payment, the distribution or marketing condition in the group are the same as, or similar to, the di tribution or marketing condition._ in !! group where the u e of price lists and/ or discount sheet and fixed terms of sale and payment is well recognized, and that a y tern of selling on net price lists or price Ii ts and discount sheets with fixed terms of sale and payment should be put into effect in such group, then each manufacturer of the product or products of uch group shall within twenty (20) days after notice of uch d termination file with ode uthority net price Ii t or price lists and di count she ts, including f .o.b. points and fixed term of ale and payment, ho wing his prices and di counts and terms of sale and payment, and such price Ii ts and/ or discount sheets and/ or terms of sale and payment shall be immediately published and ent to all known employer and may be thereafter re 1 ed in the manner hereinbef ore provided. Pro­vided that Code Authority shall make no determination to place any

2 See paragraph 2 (2) of order approving this Code.

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product of the Subdivision (not now on a price-list basis) on a price list basis, as provided in this paragraph (b) or Article VIII,. unle~s two thirds of the employers ( cooperating in this Code as provided in Article V ( d)) who are at that time engaged in manufacturing such products shall affirmatively consent that such determination be made.

( c) To the extent permitted by the Act, Code Authority shall have power, on its own initiative, or on the complaint of any em.ployer, to investigate any price and/ or terms of sale and payment for any prod­uct shown in any price list and/or discount and/ or terms of sale and payment sheet so filed with Code Authority by any employer.

(d) No employer shall sell directly or indirectly by any means whatsoever any product of the subdivision covered by provisions of this Article VIII at a price or at discounts or on terms of sale a.nd payment different from those provided in his own current net price lists, or price lists and discount and/ or terms of sale and payment sheet.

( e) No employer shall sell to or through any distributor who shall fail to agree to resell in accordance with Articles VII, VIII and IX of this Supplemental Code.3

ARTICLE IX-TR.ADE PRACTICES

Unfair trade practices shall be deemed to be practices or acts which by subterfuge, concealment, misrepresentation, or by dis­crimination, result or tend to result in selling at other than pub­lished prices, or in deceiving or misleading purchasers, or in mis­representing the products of competitors.

Any deviation from the standards as set forth in this Article IX, or any amendments thereto, by any member of the Industry, either directly or indirectly through his agents, shall be considered as unfair method of competition and a violation of this Code.

The following specific practices a.re examples of unfair methods of competition as defined above :

RULE 1. No member of this ubdivision shall secretly offer or make to any customer, agent, fiduciary or- representative of customer any payment or allowance of a rebate, refund, commission, credit, un­ea.rned discount or excess allowance, whether in the form of money or otherwise, nor shall a member of the Industry secretly off er or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale.

R LE 2. No member of this sub di vision shall give, permit to be given, or directly offer to give anjrthing of value for the purpose of influencing or rewarding the action of any employee, agent, or repre­sentative of another in relation to the business of the employer of such employee, the principal of such agent~ or the represented party, without the knowledge of such employer, principal, or party. Com­mercial bribery provisions shall not be con trued to prohibit free and general di tribution of articles commonly used for adverti ing, except so far as such articles are actually used for commercial bribery as above defined.

• See paragraph 2 (3) of ordei· approving this Code.

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RULE 3. Untruthful adverti ing r pr enting, or marking any product, with intent to d ei r mi lead.

RULE 4. Wrongfully enticino- away the employ es of competitors with the purpo and eff t of unduly hampering injuring, or em­barra ing mpetitor in their bu in ·. othing in thi paragraph hall be o int rpret d as to in any manner restrict the right of any

empl t k ernploym nt with any employer at an time. R LE 5. 1aking or au ·ino· or permittino- to be mad or publi bed

an fal e untrue or d c ptive tatem nt by way of ad rti ment or oth rwi e on erninO' the arade, quality, quantity, capa ity ub tance, chara ter nature, origin, ize or preparation of any prod11ct of this ~ubdivi ion ha ing the t n lency and capacity to mi lead or deceive pur ha er or prospe ti ve purcha ers.

R LE 6. The defamation of competitor by falsely imputing to th m di ~honorable condu t, inability to perform contract , qu st10n­able credit tanding, or by oth r false repre entation , or the false di paraO'ement of the grade or quality of their good with the tend­ency and capacity to mi lead or deceive pnrcha er or pro pective purcha er .

RULE 7. Allowing on u ed equipm nt in connection with a sale of new equipment ·more than the scrap value of such u ed equipment or more than the price at which the employer expects to r ell such used equipment, whi he er i the greater, which allowance hall be reported to the Code Authority irrunediately.

RULE . Inducing or attempting to induce the brea h of existing contracts between competitors and their customer or wrongfully interfering with or obstructing the performance of any such con­tractual duties or services.

RULE 9. The ale or offer for sale of a new product a a repos­se ed or rebuilt product and at a reduction below regular prevail­ino- publi hed new-product prices.

RULE 10. Selling or qu ting for delivery at any points other than p&ified in publi heel price chedule without the addition of proper

transportation and handling charges. R LE 11. Withholding from or in erting in an invoice an tate­

ment which makes the invoice a fal e record wholly or in part, of the tran action repre ented on the face thereof.

R LE 12. The makin of guarant es again t defect in material or, orkman hip for a lonaer period than one y ar from invoi~ date.

RULE 13. The ale or offering for sale of any produ t of the In­du try under any form of auarantoo to the purcha er or pro p ctive purcha er again t either advance or prot ction again t the decline in the price of _aid product. Thi includ contracts for material which are to oo delivered over a p riod longer than hat required o manufacture.

ARTICLE X- ALE FOR EXPORT

The provi ion of thi upplemental Cod concetnino- pricing and marketing ( rticle VII III and IX) hall not appl to direct export ale of any pro luct. imilar exemption may be granted by the Code Authority of thi ubdi i ion a to ale of an product destined ultimately for export. Unle otherwi e determined by the Code Authority the term export hall include all hipments to all

UNIV ER S IT Y OF FLOR IDA

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places without the several states of the United States and the D istrict of Columbia; provided, however, that no shipment to any territory or possession of the United States shall be considered an export when any er~1ployer is engaged in the industry in such territory or possess10n.

ARTICLE XI-MODIFICATION

(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 approved by 75 % of the employers who are cooperating in the administration of this Code, shall be in full force and effect upon approval by the Administrator.

ARTICLE XII-MONOPOLIES

Applicant imposes an l shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopoly, and shall not he so construed or applied as to oppress or eliminate small enterprises or discriminate against them, and is designed to effectuate the policy of the Act.

ARTICLE XIII-EFFECTIVE D ATE

Thi Supplemental Code shall become effective and binding on all persons engaged in the sub di vision on the eleventh day after its approval by the Administrator.

Approved Code No. 347. Supplement No. 7. Registry No. 1399'--54.

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