Approved Code No. 84 — Supplement No. 52 1/ Registry No. 1104—08 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TUBULAR SPLIT AND OUTSIDE PRONGED RIVET MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON SEPTEMBER 22, 1934 UNIV. OP FL Lli. w E DO OUR PART I * hi ft .. - -.. U.S. Be POWTOflY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. Price 5 centa 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 Code No. 84 — Supplement No. 52 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TUBULAR SPLIT AND OUTSIDE PRONGED RIVET MANUFACTURING INDUSTRY As Approved on September 22, 1934 ORDER Approving Supplementary Code of Fair Competition for the Tubular Split and Outside Pronged Rivet Manufacturing Industry a division of the fabricated metal products manufacturing and metal finishing and metal coating industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, and in accordance with the provisions of Section 1 of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for ap- proval of a Supplementary Code of Fair Competition for the Tubular Split and Outside Pronged Rivet Manufacturing Industry, and hearing having been duly held thereon ; and the annexed report on said Supplementary Code, containing findings with respect there- to, 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, pursuant to authority vested in me by Executive Orders of the President, 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 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 VI, Section 1 insofar as they prescribe a waiting period between the filing with the Supplementary 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 : Barton W. Murray, Division Administrator. Washington, D.C., September 22, 1934. 87322° 1181-89 34 (1) REPORT TO THE PRESIDENT The President. The White House. Sir : This is a report on the Supplementary Code of Fair Compe- tition for the Tubular Split and Outside Pronged Rivet Industry, a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., January 19, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Tubular Split and Outside Pronged Rivet 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 Supplemen- tary 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 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 con- sisting of five (5) members to be elected at a meeting called by the Temporary Supplementary Code Authority, and gives the Adminis- trator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the administra- tion of the Supplementary Code. Article V provides for the formulation of methods of uniform cost finding and accounting. Article VI sets forth the open price provisions. Article VII sets forth the standards of fair competition with reference to pricing practices. Article VIII provides that no provision relating to prices or terms of selling, shipping, or marketing, shall apply to export trade. Article IX sets forth the rules of Fair Trade Practices. (2) Article X contains the mandatory provisions contained m Section 10 (b) of the Act and also provides for the submission of proposed amendments to the Supplementary Code. Article XI provides against monopolies and monopolistic Article XII recognizes that price increases be limited to actual additional increases in the seller's cost. Article XIII 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 will provide for the general welfare by promoting the organiza- tion of industry for the purposes of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity ot industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of in- dustrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Industry normally employs notmore 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) ot Section 7, and Subsection (b) of Section 10 thereof; and that the applicant institute is an industrial association truly representative of the aforesaid Industry ; and that said association imposes no in- equitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not per- mit 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 discrimi- nate against them. t (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. September 22, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TUBULAR SPLIT AND OUTSIDE PRONGED RIVET MANUFACTURING INDUSTRY— A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Tubular Split and Out- side Pronged Rivet 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 2nd day of November, 1933, and the provisions of this Supplementary Code shall be the Standards of Fair Competition for such Industry and shall be binding upon every member thereof. Article II — Definitions Section 1. The term " Tubular Split and Outside Pronged Rivet Manufacturing Industry ", hereafter referred to as the " Industry ", is defined to mean the manufacture for sale of tubular, split, and out- side-pronged rivets and caps made of steel, brass, copper, iron, aluminum, or other suitable metals. Section 2. The term " Member of the Industry " includes, but without limitation, any individual, partnership, association, corpora- tion or other form of enterprise, engaged in the Industry either as an employer or on his or its own behalf. Section 3. The terms " President ", " Act ", and " Administrator", as used herein, shall mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Ad- ministrator for Industrial Recovery. Section 4. 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 Novem- ber, 1933. Section 5. 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 6. The term " Institute ", as used herein, is defined to mean the Institute of Tubular Split and Outside Pronged Rivet Man- ufacturers, or its successor. (4) Section 7. The term " Supplementary Code Committee " is de- fined to mean the Executive Committee of the Institute. Section 8. The term " employee " as used herein includes any and all persons engaged in the industry, however compensated, except a member of the industry. Section 9. The term " employer " as used herein includes anyone by whom such employee is compensated or employed. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and without limitation the wage, hour and labor provisions in Article III of its Basic Code as approved by the President, November 2, 1933, including Section 1 of said Article III, by which the provisions of 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 a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV — Organization and Administration Section 1. (a) During the period not to exceed thirty (30) days following the effective date, the Code Committee will constitute a Temporary Supplementary Code Authority until the Supplementary Code Authority is elected. (b) There shall be constituted within the thirty (30) day period a Supplementary Code Authority consisting of five members, to be elected by a majority vote of the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten (10) daj^s notice sent by registered mail to all members of the Industry whose names may be ascertained after diligent search, who may vote either in person or by proxy, each member to have one vote. The members of the Supplementary Code Authority first elected shall serve until June, 1935, and thereafter members of the Supplementary Code Authority shall be elected annually at a special meeting of all members of the Industry to be held during the month of June, each year, the exact date of which shall be deter- mined by the Supplementary Code Authority, and notice given by registered mail at least fifteen (15) days prior thereto. (c) A vacancy in the membership of the Supplementary Code Authority may be filled by a majority vote of the remaining mem- bers of the Supplementary Code Authority. (d) In addition thereto the Administrator may appoint one mem- ber of the Supplementary Code Authority who without vote shall serve without expense to the Industry. The representative who may be appointed by the Administrator shall be given reasonable notice of and may sit at all meetings of the Supplementary Code Authority. Section 2. The Institute or any Association, directly or indirectly participating in the selection or activities of the Supplementary Code Authority, shall (1) impose no inequitable restrictions on member- ship and (2) 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 member- ship, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. Section 3. In order that the Supplementary Code Authority shall at all times be truly representative of the Industry and in other respects comply with the provisions of the Act, the Administrator may prescribe such hearings as he may deem proper; and, thereafter, if he shall find that the Supplementary Code Authority is not truly representative or does not in other respects comply with the pro- visions of the Act, may require an appropriate modification of the Supplementary Code Authority. Section 4. 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; and shall be entitled to vote in the selection of the Supplementary Code Authority as provided in Section 1 of this Article and in accordance with the restrictions set forth in Section 5 of this Article. Section 5. (1) It being found necessary, in order to support the administration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Supplementary Code Authority is authorized : (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes, and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Supplementary Code. (b) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem neces- sary, (1) an itemized budget of its estimated expenses for the fore- going purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the Industry; (c) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and obtain equitable contribution as above set forth b}^ all such members of the Indus- try, and to that end, if necessary, to institute legal proceedings therefor in its own name. (2) Each member of the Industry shall pay his or its equitable contribution to the expenses of the maintenance of the Supple- mentary Code Authority, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Administrator. Only members of the Industry complying with the Supplementary Code and contributing to the expenses of its Ad- ministration as hereinabove provided, unless duly exempted from making such contributions, shall be entitled to participate in the selection of members of the Supplementary Code Authority or to receive the benefits of any of its voluntary activities or to make use of any emblem or insignia of the National Recovery Adminis- tration. (3) The Supplementary Code Authority shall neither incur nor pay any obligation substantially in excess of the amount thereof as estimated in its approved budget, and shall in no event exceed the total amount contained in the approved budget, except upon ap- proval of the Administrator; and no subsequent budget shall con- tain any deficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 6. The Supplementary Code Authority shall have the following further powers and duties, subject to such rules and regulations as may be prescribed by the Administrator. A. The Supplementary Code Authority shall have power to in- vestigate all complaints filed by one member of the Industry against another member of the Industry, subject to such rules and regulations as the Administrator may prescribe. B. To adopt by-laws and rules and regulations for its procedure and for the administration of the Supplementary Code. C. To obtain from members of the Industry such information and reports as are required for the administration of the Supplementary Code. In addition to information required to be submitted to the Supplementary Code Authority, members of the Industry 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 and State agencies as he 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 Government Agency. No individual report shall be disclosed to any other member of the Industry or any other party except to such other Governmental agencies as may be directed by the Administrator. D. To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supple- mentary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. E. To make recommendations to the Administrator for the coordi- nation of the administration of this Supplementary Code with such other Codes, if any, as may be related to the Industry. F. To appoint a Trade Practice Committee which shall meet with the trade practice committees appointed under such other Codes as may be related to the Industry for the purpose of formulating fair trade practices to govern the relationships between employers under this Supplementary Code and under such other Codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this Supplementary Code and such other Codes. G. To recommend to the Administrator further fair trade practice provisions to govern members of the Industry in their relations with each other or with other industries and to recommend to the Adminis- trator measures for industrial planning, including stabilization of employment. H. To study, in cooperation with such recognized organization as the Bureau of Standards, questions of devising adequate standards of dimensions and quality for the products of the Industry, with the view to their recommendation to and adoption by the Industry. 8 I. To submit to the Administrator for his approval a standard arrangement for setting up data to be contained in published price lists. Section 7. Every employer shall provide for the safety and health of employees during the hours and at the places of their employ- ment. Standards for safety and health shall be submitted by the Supplementary Code Authority to the Administrator within three (3) months after the effective date of the Supplementary Code. Section 8. If the Administrator believes that any action of the Supplementary Code Authority or any agenc} 7 thereof is unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action. Further action by such Supplementary Code Authority or agency regarding the matter com- plained of may be taken if approved by the Administrator, but shall not be taken if disapproved by the Administrator within 30 days of notice to him of intention to proceed with such action. Section 9. 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 10. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose. Nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of the Supplementary Code Authority. Nor shall any member of the Supplementary Code Authority exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his own wilful malfeasance or non-feasance. Section 11. Any or all information furnished to the Supple- mentary Code Authority by any member of the Industry shall be, pursuant to the provisions of this Supplementary Code, subject to verification by an examination of the pertinent or necessary books, accounts and records of such member by an impartial agency agreed upon by the Supplementary Code Authority and the member of the Industry in question, or, failing such agreement, by an impartial agent designated by the Administrator. Such examination shall be made only to the extent permitted by the Act and such rules and regulations as may be prescribed by the Administrator. The cost of each such examination shall be borne by the Supplementary Code Authority. Article V — Cost Finding and Accounting The Supplementary Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Administra- tor for review. If approved by the Administrator, full information concerning such methods shall be made available to all members of the Industry. Thereafter, each member of the Industry shall utilize euch methods to the extent found practicable. Nothing herein con- tained shall be construed to permit the Supplementary Code Au- thority, any agent thereof, or any member of the Industry to sug- gest uniform additions, percentages or differentials or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or prices. Article VI — Open Price Filing Section 1. Each member of the Industry shall file with a confi- dential and disinterested agent of the code authority or, if none, then with such an agent designated by the Administrator, identified lists of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale, hereinafter in this article referred to as " price terms ", which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard products of the Industry as are sold or offered for sale by said member and for such non-standard products of said member as shall be desig- nated by the Supplementary Code Authority. Said price terms shall in the first instance be filed within ten (10) days after the election of the Supplementary Code Authority. Price terms and revised price terms shall become effective three days subsequent to the receipt thereof by said Agent. Immediately upon receipt thereof, said agent shall by telegraph or other equally prompt means notify said member of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall upon receipt be immediately and simultaneously distributed to all members of the Industry and to all of their customers who have applied therefor and have offered to defray the cost actually incurred by the Supplemen- tary Code Authority in the preparation and distribution thereof and be available for inspection by any of their customers at the office of such agent. Said lists or revisions or any part thereof shall not be made available to any person until released to all members of the Industry and their customers, as aforesaid; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid ten (10) day period after the election of the Supple- mentary Code Authority. The Supplementary Code Authority shall maintain a permanent file of all price terms filed as herein provided, and shall not destroy any part of such records except upon written consent of the Administrator. Upon request the Supplemen- tary Code Authority shall furnish to the Administrator or any duly designated agent of the Administrator copies of any such lists or revisions of price terms. 1 Section 2. When any member of the Industry has filed any re- vision, such member shall not file a higher price within forty-eight (48) hours. Section 3. No member of the Industry shall sell or offer to sell any products of the Industry, for which price terms have been filed pursuant to the provisions of this article, except in accordance with such price terms. Section 4. No member of the Industry shall enter into any agree- ment, understanding, combination or conspiracy to fix or maintain 1 See paragraph 2 of order approving this Code. 10 price terms, nor cause or attempt to cause any member of the In- dustr} 7 to change his price terms by the use of intimidation, coercion, or any other influence inconsistent "with the maintenance of the free and open market which it is the purpose of this article to create. Article VII — Costs and Price Cutting Section 1. The standards of fair competition for the Industry with reference to pricing practices are declared to be as follows : (a) Wilfully destructive price cutting is an unfair method of competition and is forbidden. Any member of the Industry or of an} 7 other Industry or the customers of either may at any time com- plain to the Supplementary Code Authority that any filed price constitutes unfair competition as destructive price cutting, imperil- ing small enterprises or tending toward monopoly or the impairment of code wages and working conditions. The Supplementary Code Authority shall within 5 days afford an opportunity to the member filing the price to answer such complaint and shall within 14 days make a ruling or adjustment thereon. If such ruling is not con- curred in by either party to the complaint, all papers shall be re- ferred to the Research and Planning Division of N.R.A. which shall render a report and recommendation thereon to the Administrator. (b) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended that sound cost estimating methods should be used and that consideration should be given to costs in the determination of pricing policies. (c) When an emergency exists as to any given product, sale below the stated minimum price of such product, in violation of Section 2 hereof, is forbidden. Section 2. Emergency Provisions. — (a) If the Administrator, after investigation shall at any time find both (1) that an emergency has arisen within the Industry adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a specified product within the Industry for a limited period is necessary to mitigate the conditions constituting such emergency and to effectuate the purposes of the Act, the Supple- mentary Code Authority may cause an impartial agency to investi- gate costs and to recommend to the Administrator a determination of the stated minimum price of the product affected by the emergency and thereupon the Administrator may proceed to determine such stated minimum price. (b) When the Administrator shall have determined such stated minimum price for a specified product for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Recovery Act, he shall publish such price. Thereafter, during such stated period, no member of the Industry shall sell such specified products at a net realized price below said stated minimum price and any such sale shall be deemed destructive price cutting. From time to time, the Supplementary Code Authority may recommend review 11 or reconsideration or the Administrator mny cause any determina- tions hereunder to be reviewed or reconsidered and appropriate action taken. Article VIII — Export Trade No provisions of this Supplementary Code relating to prices or terms of selling, shipping, or marketing, shall apply to export trade or sales or shipments for export trade. " Export Trade " shall be as defined in the " Export Trade Act ", adopted April 10, 1918. Article IX — Fair Trade Practices Section 1. The following sections are adopted as rules of Fair Trade Practices and shall be binding upon all members of the Industry : A. No member of the Industry shall knowingly withhold from or insert in any quotation or invoice any statement that makes it in- accurate in any material particular. B. No member of the Industry shall secretly offer or make any payment or allowance of a rebate, refund, commission credit, un- earned discount or excess allowance, whether in the form of money or otherwise, nor shall a member of the industry secretly offer 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. C. No member of the Inclustrj^ shall defame a competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representa- tion, or by falsely disparaging the grade or quality of his goods. D. There shall be no false marking or branding of any product of the Industry which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Industry or otherwise. E. It is an unfair trade practice to imitate or simulate the trade mark, trade name, package wrapper, or label of a competitor's prod- uct to such a degree as to deceive or have a tendency to deceive customers. F. The false classification of any products of this Industry for the purpose of securing lower freight rates shall be an unfair method of competition. G. It is an unfair trade practice to make, or cause or knowingly permit to be made, or publish any false, materially inaccurate or deceptive statement, by way of advertisement or otherwise, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish or preparation of any product of the Industry, or the credit, terms, values, policies, or services of any member of the Industry, or otherwise, having the tendency or capacity to mislead or deceive customers or prospective customers. H. The securing of confidential information concerning the busi- ness of a competitor, by a false or misleading statement or representa- tion, which is properly regarded by it as a trade secret or confidential within its organization, other than information relating to a viola- 12 tion of any provisions of the Supplementary Code, is an unfair trade practice. I. No member of the Industry, directly or indirectly, by any means whatsoever, shall (1) sell any of the products enumerated in the price lists (filed as provided for in Article VI) at prices other than those so filed, or (2) extend any servicing which would have the effect, directly or indirectly, of reducing the net prices so determined. Provided, however, that the leasing of riveting machines by a manu- facturer under leases by the provisions of which the compensation for the servicing of such machines by the manufacturer during the term of their rental is included in the price of the rivets supplied by such manufacturer to the lessee, and under the provisions of which rebates of rental of the machines are made in consideration of the use of specified quantities of rivets supplied by said manufacturer to the lessee, shall not be construed as violation of this Section. J. The making of any sale or contract of sale of any product under any description which does not fully describe such product in terms customarily used in the Industry, and the canceling, in whole or in part, or permitting the cancellation, in whole or in part, excepting where the seller is at fault, of any contract of sale of any products, except for a fair consideration, or paying or allowing to any pur- chaser in connection with the sale of any product any rebate com- mission, credit, discount, adjustment, or similar concession other than as is permitted by the Supplementary Code and specified in the contract of sale, are unfair trade practices. K. Members of the Industry shall not contract for sale of prod- ucts covered by this Supplementary Code for longer than calendar quarterly periods. All shipments on contracts shall be made within 15 days after the expiration date, or as soon thereafter as the seller can manufacture and ship the same. No quarterly contract shall be made more than 30 days prior to the beginning of the calendar quar- ter, and shall be at the price effective at the time of making the contract. L. No member of the Industry shall make or give to any Buyer of any product of the Industry, any guarantee or protection in any form against decline in the market price of such product after ship- ment thereof. M. No member of the Industry shall consign replacement rivets with a distributive medium of any character, or industrial rivets with any consumer, except under circumstances to be defined by the Supplementary Code Authority and approved by the Administrator, where peculiar circumstances of the Industry require the practice. N. No member of the Industry shall make any arrangement with a jobber or dealer whereby such jobber or dealer acts both as agent and as jobber or dealer in a specific transaction and thereby receives both the jobber's commission or dealer's discount and the agent's commission on the same transaction. O. The continuance knowingly by a member of the Industry in its or his employment of any agent who shall divide his commission with a buyer or the agent of the buyer, without the knowledge of his employer, is prohibited. P. Members of the Industry shall not permit the return by any buyer of any product covered herein, delivered in full compliance 13 with all the terms and conditions of any contract, except products defective in material or workmanship, nor shall any such member of the Industry purchase or repurchase such products after the delivery thereof by whomsoever delivered to such buyer. Exception may be made in cases where the product is shown on the current price list and the buj^er reports in good faith within ten days after receipt of the shipment that an error has been made by him in ordering; in which case the return transportation charges must be prepaid and a reasonable handling charge may be made based on the invoice value of tfie goods. Exception may also be made to permit the return of goods for which the purchaser refuses to pay. Q. The making or issuing of any guarantees having a tendency to mislead a buyer, is an unfair trade practice. R. No member of the Industry shall publish or circulate unjusti- fied or unwarranted threats of legal proceedings which tend to or have the effect of harassing competitors or intimidating their customers. S. Quoting a total price on any schedule of materials which does not show the sum of the regular unit prices of the articles compris- ing the schedule, constitutes unfair competition. Where an article consists of two or more parts which themselves are considered units by the Industry, the unit price of the combination article shall be the sum of the unit prices of the articles which comprise it and the invoice shall list each item separately with its price. This rule shall not be construed to prevent the granting of quantity discounts. T. The giving, or lending, of any material or the rendering to any purchaser of any product, in connection with the sale of such product, of any service, unless fair compensation for such material or service shall be paid by such purchaser, is an unfair trade practice. Pro- vided, however, that the leasing of riveting machines by a manu- facturer under leases by the provisions of which the compensation for the servicing of such machines by the manufacturer during the term of their rental is included in the price of the rivets supplied by such manufacturer to the lessee, and under the provisions of which rebates of rental of the machines are made in consideration of the use of specified quantities of rivets supplied by said manufacturer to the lessee, shall not be construed as violation of this section. U. The announcement of price changes by any member of the Industry to its sales organization or to any buyer prior to the effec- tive date of such changes, is an unfair trade practice. V. No member of the Industry shall give, permit to be given, or directly offer to give, anything 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, principal of such agent or the represented party, without the knowl- edge of such employer, principal or part}'. This provision shall not be construed to prohibit free and general distribution of articles com- monly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. W. No member of the Industry shall wilfully induce or attempt to induce the breach of existing contracts between competitors and their customers by any false or deceptive means, or interfere with or obstruct the performance of any such contractual duties or services UNIVERSITY OF FLORIDA 14 3 1262 08856 2433 by any such means, with the purpose and effect of hampering, injur- ino- or embarrassing competitors in their business. X. No member of the Industry shall require that the purchase or lease of any goods be a pre-requisite to the purchase or lease of any other goods. This provision shall not be interpreted as prohibiting the leasing of rivet setting machines by a member of the Industry on a basis providing for the cancellation or reduction of a stipulated rental in consideration of the purchase of a stipulated quantity of rivets. Article X — Modifications Section 1. This Supplementary Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions of sub-section (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval license, rule or regulation issued under the said Act. Section 2. This Supplementary Code, except as to provisions re- quired by the Act, may be modified or amended on the basis of experience or changes in circumstances, such modifications or amend- ments to bd based upon application by the Supplementary Code Authority or other Eepresentative group within this Industry to the Administrator and such notice and hearing as he shall specify and to become effective and be a part of this Supplementary Code on ap- proval by the Administrator. Article XI — Monopolies Section 1. No provision of this Supplementary Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Article XII — 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 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 XIII — Effective Date and Duration This Supplementary Code shall become effective at 12 : 01 o'clock (Eastern Standard Time) on the tenth day after it is approved by the President and shall continue in effect until June 16, 1935, or the earliest date prior thereto on which the President shall, by procla- mation, or the Congress shall, by joint resolution, declare that the emergency recognized by Section 1 of Title I of the National Indus- trial Recovery Act has ended. Approved Code No. 84 — Supplement No. 52. Registry No. 1104-08. O #