Approved Code No. 84— Supplement No. 22 Registry No. 1114—22 »/ NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE DRAPERY AND CARPET HARDWARE MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON MAY 9, 1934 lih'!",/ nw P' ! V--- „WE DO OUR PART U.S, DEPOSiTO?*Y J UNITED STATES GOVEBNMENT PRINTING OFFICE WASHINGTON : 1934 For sale by the Superintendent of Documents. Washington, D.C. ---..... Frice 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. 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Approved Cede No. 84 — Supplement No. 22 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE DRAPERY AND CARPET HARDWARE MANUFACTURING INDUSTRY As Approved on May 9, 1934 ORDER Approving Supplementary Code of Fair Competition for the Drapery and Carpet Hardware Manufacturing Industry A DI\TSION of the FABRICATED METAL PRODUCTS MANUFACTUKINa 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 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 Drapery and Carpet Hardware 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 President: NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, ])ursuant 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 an- nexed report and do find that said Supplementary 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 Supplementary Code of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article V, Section 1, insofar as they prescribe a waiting period between the filing with the Code Authority (or such agency as may be designated in the Code) and the effective date of price lists, as originally filed and/or revised price lists or revised terms and conditions of sale, be and they hereby are stayed pending my further Order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval Recommended: A. R. Gi^NCY, Division A dministrator. Washington, D.C. May 9, 103 J^. 57801° 544-49 34 (1) REPORT TO THE PRESIDENT Tlie President, The White House. Sir : This is a report on the Supplementary Code of Fair Compe- tition for the Drapery And Carpet Hardware Manufacturing Indus- try, 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 19, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. General Statement The Drapery And Carpet Hardware 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 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 HI. 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 seven (7) members to be elected by the members of the Industry at a meeting called by the Temporary Supplementary Code Commit- tee, and gives the Administrator the authority to appoint one addi- tional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. Article V provides for methods of setting up and revising price lists. Article VI provides for determining the lowest reasonable cost of the products of this Industry. Article VII sets forth the unfair trade practices of this Supple- mentary Code which has been especially designed to offset unfair competition in this division of the Industry. Article VIII provides against monopolies and monopolistic pi'actices. (2) Article IX contains the mandatory provisions contained in Sec- tion 10 (b) and also provides for the submission of proposed amend- ments to the Supplementary Code. Article X recognizes that price increases be limited to actual additional increases in the seller's costs. Article XI states the effective date of this Supplementary Code. FINDINGS The Deputy Administrator in his final report to me on said Sup- plementary 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 w411 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 sanctions and supervision, by eliminating unfair competitive practices, by pro- moting the fullest possible utilization of the present productive ca- pacity of industries, by avoiding undue restrictions of production (except as may be temporarily required), by increasing the con- sumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by im- proving 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 re- spects with the pertinent provisions of said Title of said Act, in- cluding without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that tne applicant group is an industrial group truly representative of the aforesaid Industry; and that said association imposes no inequi- table 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. Mat -9, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE DRAPERY AND CARPET HARDWARE MANUFAC- TURING 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 Drapery and Carpet Hardware Manufacturing Industry. Pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by the President of the United States on the 2d day of November, 1933, the provisions of this Supplementary Code shall be the standard of fair competition for such Industry and shall be binding upon every member thereof. Article II — Definitions Section 1. The terms " President ", " Act " and " Administrator ", as used herein, shall mean the President of the United States, the National Industrial Recovery Act, and the Administrator for Indus- trial Recovery under said Act. Section 2. The term " Industry " and/or " Drapery and Carpet Hardware Industry " means and includes the business of manufac- turing Drapery and/or Carpet Hardware. Section 3. " Drapery and Carpet Hardware " means and includes : (a) Drapery Hardware: All wood, metal or glass devices, or devices made of any other material, ordinarily used to support dra- peries at windows, doorways or like spaces. These devices are Rods or Tubes, either of fixed length or adjustable, either stationary or detachable from Brackets fastened to the wall at either end of the Rod or Tube; or supported from one end only, so that they can swing away from the w^indow or door. Also the Hooks or Brackets to support such Rods or Arms, and the Rings, Hooks, Pins and Special Pins used to attach the draperies to the Rods or Arms. Also the Pulleys, Carriers, Brackets, Tassels, and other devices used in moving the draperies to and fro, so as to either cover or disclose the window or door. Also such metal or otlier fixtures generally known in the trade as Holdbacks, used to tie back the drapery fabrics in an arched arrangement. Also those special forms of Hardware used by decorators and housewives to obtain particular effects in the arrangement of draperies and recognized by them under the classification of Drapery Hardware. (4) (b) Carpet Hardware: All metal and wood pieces or pieces made of any other material, or strips used to cover or protect from wear the edges, seams or joints of linoleum or other floor coverings. Wliere linoleum or like material is used as a surface on desks or display tables, the metal and wood strips and corners used to pro- vide firm edges, are included in the term " Carpet Hardware". The term also includes the metal plates or nosings, or plates or nosings of any other material, generally used on the treads of stair cases. Also stair rods and fasteners, rug fasteners and carpet pins and sockets. Section 4. The term " product " means and includes Drapery and/or Carpet Hardware as herein defined. Section 5. The term " member of the Industry " means and includes any person, firm, corporation or association operating a plant or plants manufacturing Drapery and/or Carpet Hardware, whether for its own use or for sale. Section 6. The term " member of the Supplementary Code " means any member of the Industry who shall have assented to the provisions of this Supplementary Code by instrument in writing duly filed with the Secretary. Section 7. 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 8. The term " employer " as used herein includes anyone by whom any such employee is compensated or employed. Section 9. 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. Section 10. The term " Supplementary Code Authority " as used herein is defined to mean the agency which is to administer this Supplementary Code as hereinafter provided. Section 11. The term " Bureau " means Drapery and Carpet Hardware Manufacturers' Bureau, or its successor. Section 12. The term " Executive Committee " means Executive Committee of Drapery and Carpet Hardware Manufacturers' Bureau. Section 13. The term " Secretary " means Secretary of Draper}' and Carpet Hardware Manufacturers' Bureau, or such other im- partial and confidential agency as the Supplementary Code Authority may designate. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and 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 Subsections (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 6 a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV — Organizaiign and Administration Section 1. During the period not to exceed sixty (60) days fol- lowing the effective date, the Executive Committee shall constitute a Temporary Supplementary Code Authority, who shall have all the powers and duties of the Supplementary Code Authority, herein set forth, until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of seven (7) 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 members of the Industry whose names can be ascertained after diligent search, who may vote either in person or by proxy. The member of the Supplementary Code Authority first elected shall serve until the following annual meeting of the Bureau and until their successors are elected, and thereafter, mem- bers of the Supplementary Code Authority shall be elected inunedi- ately after each annual meeting of the Bureau to serve until their successors are elected. Notice of each election shall be sent in the manner above provided. The membership of the Supplementary Code Authority shall be made up as follows : (a) Two (2) members who shall be members of the Industry elected by a majority vote of the members of the Industry present in person or represented by proxy, each member to have one vote ; (b) One (1) member wlio is not a member of the Bureau elected by a majority vote of the non-members of the Bureau, present in person or represented by proxy, each member to have one vote ; (c) Four (4) members who shall be members of the Bureau elected by fifty-one percent vote of members of the Bureau, present in person or represented by proxy, weighted on the basis of one vote for each member and additional votes equal to the percentage which each such member's dollar volume bears to the total dollar volume of the mem- bers of the Bureau in the previous calendar year, reported to the Secretary. Provided^ however^ That no one member may have more than 33 such votes and provided, further, that the election shall be so conducted that no member of the Bureau shall ascertain the vol- ume of any other member; (d) A vacancy in the membership of the Supplementary Code Authority may be filled by majority vote of the remaining members of the Supplementary Code Authority; (e) In addition to the above the Administrator may appoint one representative without vote and without expense to the Industry unless the Supplementary Code Authority agrees to pay such ex- penses, to serve on said Supplementary Code Authority in the administration of this Supplementary Code. Said representative shall be given reasonable notice of all meetings of the Supplementary Code Authority. Section 2. Any Association, Institute and/or Bureau directly or indirectly participating in the selection or activities of the Supple- mentary Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amend- ments when made thereto, together with such other 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, there- after, if he shall find that the Supplementary 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 Supplementary Code Authority. Section 4. The Supplementary Code Authority is hereby consti- tuted the agency to administer the provisions of this Supplementary Code and to collect and distribute all statistical reports of the Indus- try. With a view to keej^ing the President informed as to the observ- ance or nonobservance of this Supplementary Code, said agency shall collect through the Secretary such statistics as called for by the President and/or the Administrator and send them in such form as the President and/or the Administrator may require to the Fabri- cated Metal Products Federation, or successor organization, as the agency administering said Basic Code. All individual reports shall be treated as confidential by the Secretary and shall not be disclosed to any member of the Industry or any other party except wdiere neces- sary in the enforcement of this Code and except to such governmental agencies as may be directed by the Administrator. Section 6. The Supplementary Code Authority as such agency 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 6. The Supplementary Code Authority shall have power from time to time to require each member of the Industry to furnish to the Secretary such information as is required by the Administra- tor, concerning the production, shipments, sales and orders of such member and the hours of labor, rates of pay and other conditions of emplo^^ment at the plant or plants of such member and such other information as the Supplementary Code Authority shall deem neces- sary or proper in order to effectuate the purposes of this Code and the policy of the Act. All individual reports shall be treated as confidential by the Secretary and shall not be disclosed to any mem- ber of the Industry or any other party except where necessary in the enforcement of this Code and except to such governmental agen- cies as may be directed by the Administrator. Section T. The Supplementary Code Authority may require that any such information be furnished periodically at such times as it sliall specify, and may require that any or all information furnished be sworn to or otherwise certified or authenticated as it shall pre- scribe. Failure of any member of the Industry promptly to furnish to the Secretary information required by the said Supplementary Code Authoritj^ and substantially in the form prescribed by it shall constitute a violation of the Code. 8 Section 8. Any or all information furnished to the Secretary by any corporate member of the Industry specifically assenting hereto pursuant to the provisions of this Code shall be subject to verifica- tion by an examination of the pertinent books, accounts and records of such member by any accountant or accountants or other person or persons designated by the Supplementary Code Authority and shall be so checked for such purpose if the Supplementary Code Authority shall require it. The cost of each such examination shall be treated as an expense of administering tlie Code. Section 9. All members of the Industry are subject to the juris- diction of the Supplementary Code Authority; shall be entitled to participate in and share the benefits of the Supplementary Code Authority; shall be entitled to vote in the selection of the Supple- mentary Code Authority as provided in Section 1 of this Article; and shall pay to the Secretary as the agent of the Supplementary Code Authority their reasonable share of the expenses of the Ad- ministration of this Supplementray Code, such reasonable share to be determined by the Supplementary Code Authority, subject to review by the Administrator on the basis of volume of business and/or such other factors as may be deemed equitable by the Supple- mentary Code Authority. Section 10. Nothing contained in this Supplementary Code shall be deemed to constitute the members of the Supplementary Code Authority partners for any purpose, whatsoever. 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 Supplementary Code Authority, exercising reason- able diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Code, except for his own wilful misfeasance or non-feasance. Section 11. The Supplementary Code Authority shall without any limitation on the foregoing have the following further general powers and duties subject to such rules and regulations as the Administrator may prescribe : (a) To insure the execution of the provisions of this Supple- mentary Code and provide for the compliance of the Industry with the provisions of the Act; (b) To adopt by-laws and rules and regidations for its procedure and for the administration of the 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 submitted to the Supplementary Code Authority, all or any of the persons subject to this Supplementary Code shall furnish such statistical information as the Administrator may deem necessary for the purposes recited in section 3 (a) of the Act to such Federal ancl State agencies as the Administrator may designate. Provided that nothing in this Supplementary Code shall relieve any member of the Industry of any existing obligations to furnish reports to any gov- ernment agency ; (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 co- ordination 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 projoortionate 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.E.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 stabili- zation of employment; (i) To establish an impartial agency for the registration of origi- nal designs, patterns or forms, and to promulgate and from time to time amend rules and regulations for the registration thereof, all subject to the ajDproval of the Administrator. (j) To set u]) definitions for the various classes of customers of the Industry. When such definitions are approved by the Adminis- trator, quotations, prices, discount, credit terms, allowances or other conditions of sale shall be made on the basis of and with reference to such definitions, and deviations therefrom shall constitute unfair methods of competition and shall be deemed to be a violation of this Code. Section 12. If the Administrator believes that any action of the Supplementary Code Authority or any agency thereof is unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to aiford an opportunity for investigation of the merits of such action. Further action by such Supplementary Code Authority or agency regarding the matter complained of may be taken if approved by the Administrator but shall not be taken if disapproved by the Administrator within thirty days of notice to him of intention to proceed with such action. Article V — Price Lists Section 1. The Supplementary Code Authority may require each member of the Industry who manufactures and sells any product of the Industry within ten (10) days after the effective date of this Supplementary Code to file with the Secretary and publish duplicate originals of all price lists, catalogues, descriptive price lists and literature showing or pertaining to prices and other conditions of sale, special discounts for various classes of customers or for quan- tity, together with any trade policy affecting the net price of the merchandise, in such numbers as may be requested by the Secretary for distribution to the members of the Supplementary Code, and in such form as the Supplementary Code Authority may direct, showing in separate schedules such member's net price to, or discount from list allowed to such of the following classes of purchasers as said 10 member sells or quotes : chain-stores, catalogue or mail-order houses, jobbers, retailers and consumers. Said price list shall be made available to all interested parties. Provided, however, that nothing in this paragraph contained shall compel a member of the Industry to file a price list or price lists on any product of the Industry manufactured and used by such manufacturer for the purpose of making up other products not products of the Industry, or for export as the term is defined in Article VII, Paragraph A, of this Supplementary Code. The Secretary shall immediately send copies thereof to all other members of the Supplementary Code and shall make said price lists available to all interested parties. Provided further that prices to chain-stores need not be filed but any member of the Industry may do so if he desires. None of the price data so filed as herein provided shall be changed except by the filing with the Secretary, by such member of the Industry new price data setting forth such change or changes which shall become effective and be published on the effective date specified by such member of the Industry which shall be ten (10) days after the date on which such new price data shall have been filed with the Secretary, and copies thereof with notice of the effective date specified shall be immediately sent to all members of the Supplementary Code, who thereupon may file if they so desire, to become effective upon the date when the revised price data first filed shall go into effect, or at a subsequent specified elate, revisions of their price data, establishing prices not more favorable to the purchaser than those established in the revised price data first filed.^ Section 2. No member of the Industry shall make any sale or quotation of any product of the Industry at prices or on conditions more favorable to the purchaser thereof than those specified in the price data so filed by such member in accordance with the provi- sions of this Supplementary Code and in effect at the time of such sale; nor shall any member of the Industry make any contract of sale of any product of the Industry at prices or on conditions more favorable to the purchaser thereof than those specified in the price data so filed as aforesaid and in effect at the tiilie of the making of such contract of sale. For all purposes of this Article a delivery of any product made pursuant to a contract of sale shall be regarded as a sale thereof made at the time of the making of such contract. Article VI — Sales Below Reasonable Cost Notwithstanding any other provisions of this Supplemental Code, when the Supplementary Code Authority determines that an emer- gency exists in this Industry and that the cause thereof is destruc- tive price-cutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Supplementary Code, the Supplementary Code Authority may cause to be determined the lowest reasonable cost of the products of this Industry, such deter- mination to be subject to such notice and hearing as the Administra- tor may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of the » See paragraph 2 of order approving this Code. 11 emergency, it shall be an unfair trade practice for any member of the Industry to sell or offer to sell any products of the Industry for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than such lowest reasonable cost of such products. "U^ien it appears that conditions have changed, the Supplementary Code Autliority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. Article VII — Unfair Trade Practices Section 1. For all purposes of this Supplementary Code the fol- lowing described acts shall constitute unfair practices. Such unfair practices shall be deemed to be unfair methods of competition in commerce, within the meaning of the Federal Trade Commission Act, as amended, and the using or employing of any of them shall be deemed to be a violation of this Supplementary Code : (a) The sale or exchange of any product in whole or in part below the cost of such product to the particular member of the Industry, such cost to be computed according to a cost formula to be formulated by the Supplementary Code Authority or approved by a reputable firm of accountants, and approved by the Administrator : 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 In- dustry has filed with Supplementary Code Authority, not less than two weeks before such disposal, a statement in writing, setting forth the fact of and reasons for, such proposed disposal. Pro%nded., further^ That selling below cost (as defined in Para- graph I of this Section A) to meet existing competition on products of equivalent design, character, quality or specifications shall not be deemed a violation of this Article; Provided^ further, That no provisions of this Supplementary Code relating to prices or terms of sale, shipping or marketing, shall apply to or affect the sale of any product for direct shipment in export trade by any member of the Industry within the meaning of the term " export trade " as it is used in the Export Trade Act. (b) The provisions of Article V, Paragraph (b) to (g), inclusive, of the Basic Code are a part of this Supplementary Code to the same extent as if here repeated and set forth in full. (c) Supplying usable samples in excess of the value of 25^ each, for display purposes for less than lawful prices. Supplying with- out charge or at less than cost sample boards and equipment con- nected therewith, including the servicing thereof except samples or models submitted for buyers' inspection and review, not offered to all purchasers under like conditions, which conditions shall be a manufacturer's trade policy published and offered in connection with price lists to the trade illustrating or describing merchandise to be sold in connection therewith. (d) Making or giving to any purchaser of any product any guar- antee or protection in any form against decline in market price of such product, after date of shipment. 12 (e) Cancelling in whole or in part, or permitting the cancellation in whole or in part, of any contract of sale of any product unless for justifiable cause or a fair consideration. (f) Making contracts requiring delivery of specified quantity or quantities in specified time, if demanded by the buyer, but not re- quiring the buyer to accept such quantity or quantities within the specified time. (g) Making contracts at a specified price for an unspecified quan- tity for delivery as demanded by the buyer. (h) Offering any article, by price or otherwise, in a manner to influence the purchase of another article. (i) Soliciting by any member of the Industry the pooling of orders from several customers and/or buyers in a manner to give the customers and/or buyers advantage of more favorable price or terms than those to which the buyers would be entitled individually. (j) Consigning merchandise for any reason whatsoever, except to a wholly owned or controlled subsidiary, or except under circum- stances to be defined by the Supplementary Code Authority where peculiar circumstances of the Industry require the practice. (k) Copying original designs, patterns or forms of any member of the Supplementary Code, filed pursuant to the provisions of this Supplementary Code, without his consent. (1) Accepting the return of merchandise for reasons other than defects in such merchandise existing at the time of shipment, seller's mistake in shipment or purchaser's credit becoming impaired unless a minimum charge of 10% for rehandling be made. Accepting the return of discontinued and/or unlisted merchandise under any cir- cumstances except because of defects in such merchandise existing at the time of shipment, seller's mistake in shipment or purchaser^ credit becoming impaired. Section 2. Terms shall be two per cent ten days, net thirty daj^s, with the privilege to discount all invoices of any one month on the tenth day of the month following, with no allowance for anticipa- tion; all shipments to be made f.o.b. factory, warehouse or branch with store door delivery permitted in towns or cities where such factory, warehouse or branch is located, provided, however, that any manufacturer shall have the right to bill his merchandise with freight allowance to equal f.o.b. shipping point or store door delivery of any competing manufacturer's factory from which com- peting merchandise is supplied, or to equal f.o.b. shipping point or store door delivery of any competing manufacturer's warehouse or branch from which competing merchandise is supplied if the price of any such competing manufacturer's warehouse or branch does not include freight from source of shipment. The violation of any of the provisions of this Section shall constitute an unfair practice and a violation of this Supplementary Code. Section 3. One of the main causes of demoralization and ruinous price conditions in the Industry has been the substitution for Standard Products of products which do not measure up to reco<^- nized standards. It therefore shall be an unfair method of competi- tion for any manufacturer, when an inquiry calling for a Standard Product is received, to quote on or sell a product which does not measure up to the specifications of Standard for said product. 13 The Standards for Drapery and/or Carpet Hardware, as to form, dimensions, materials, etc., shall be the standards promulgated and, from time to time, amended by the Supplementary Code Authority in cooperation with the Bureau of Standards of the United States subject to the approval of the Administrator. Provided, however, that neither this Article nor any provision thereof shall be construed to prevent a member of the Industry from continuiufr to manufac- ture and sell, pursuant to the remaining provisions of this Supple- mentary Code, any product or products manufactured and sold by him prior to the elfective date of this Supplementary Code, without the consent of such member. Provided, further, that neither this Article nor any provision thereof shall be construed to prevent a member of the Industry from developing new designs or types of Standard or other products and manufacturing and selling the same pursuant to the remaining provisions of this Supplementary Code. Article VIII — Monopolies No provision of this Supplementary Code shall be applied so as to permit monopolies or monopolistic practices, or to eliminate, op- press or discriminate against small enterprises. Article IX — ]\Iodifications 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 cancel 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 to the Administrator and such Notice and Hearing as he shall specify and to become effective on approval by the President. Article X — 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 increases 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 XI — Effective Date This Supplementary Code shall become effective at 12 : 01 o'clock a.m. Eastern Standard Time of the tenth day after it is approved by the President. Approved Code No. 84. Supplement No. 22. Registry No. 1114-22. O UNIVERSITY OF FLORIDA 3 1262 08856 0767