u Approved Code No. 347 — Supplement No. 36 Registry No. 1328—09 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE REFRIGERATING MACHINERY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JULY 30, 1934 We DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C Price 5 cents This publication is for sale bv 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. v Birmingham, Ala.: 257 Federal Building. Boston, Mass.: 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex.: Chamber of Commerce Building. 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Approved Code No. 347 — Supplement No. 36 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE REFRIGERATING MACHINERY INDUSTRY As Approved on July 30, 1934 ORDER Approving Supplementary Code of Fair Competition for the Refrigerating Machinery Industry a division of the machinery and allied products 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, for approval of a Supple- mental Code of Fair Competition for the Refrigerating Machinery Subdivision of Machinery and Allied Products Industry, and hear- ings having been duly held thereon and the annexed report on said Supplemental 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, 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 Supplemental 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 Supplemental Code of Fair Competition be and it is hereby approved subject to the following conditions: (1) that the provisions of Articles VI, VII, VIII, and IX be and they hereby are stayed for a period of fifteen (15) days; then to become effective unless I, by my further order, otherwise direct; within which time cause may be shown, if any there be, why the above provisions should not become effective ; and that the Code Authority send notice of the stay of these provisions and of the opportunity to show cause why they should not become effective to all known employers of the Subdi- vision; and (2) that the provisions of Article VIII, Section (a), insofar as they prescribe a waiting period between the filing with the Code Authority (or such agency as may be designated in the Supplemental Code) and the effective date of price lists or revised 7710G°— S29-1G7 34 1 (1) 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., July SO, 1034. REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Com- petition for the Refrigerating Machinery Subdivision of Machinery and Allied Products Industry, a Public Hearing on which was held in Washington, D.C., on December 21, 1933. The Hearing was conducted in full accordance with the provisions of Title I of the National Recovery Act. GENERAL STATEMENT The Refrigerating Machinery Subdivision being representative of the manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Sup- plemental Code of Fair Competition as provided in the second paragraph of Article I of the Code of Fair Competition for the Machinery and Allied Products Industry approved on the seven- teenth day of March 1934. The Refrigerating Machinery Subdivision means the engineering, design, and production of commercial and industrial ice making and refrigerating machinery and equipment incidental thereto. It is expressly stated for the purposes of this Code that it is to apply to the engineering, design, manufacture, and sale, as well as erec- tion and/or installation of such machinery and equipment incidental thereto. Any work or process incidental to and carried on by an employer at his plant or elsewhere as a part of the manufacture of any product of the Subdivision shall be governed by the pro- visions of this Code rather than of any other Code. ECONOMIC EFFECT This Subdivision has been severely affected by the recent depres- sion. This is evidenced by the steady decline in annual sales after J 929 from $37,769,000 in 1929 to $20,580,000 in 1932 or 45.2 per cent. In 1929 this Subdivision employed approximately 6,759 factory workers, which total declined to about 4,339 workers as of November 15, 1933 or 35.8 per cent. Approximately 56 per cent of the workers were working more than 40 hours per week as of June 15, 1933 as compared to an average work week of 50.6 hours in 1929. Estimated man hours declined from an average of 342,000 per week in 1929 to 133,210 as of November 15, 1933 or 61 per cent. Until there is a further increase in man hour requirements, the adoption of the 40 hour week will probably cause no increase in employment in this Subdivision. (3) Estimated weekly earnings declined from an average of $27.02 in 1929 to a minimum of $13.38 in the last half of 1932, or 50.5 per cent. Based on the distribution as of June 15, 1933 and the specified percentages of number of wage earners receiving less than rates previously prevalent in this Subdivision, the adoption of the pro- posed minimum hourly rates will cause an increase in factory pay- rolls in this Subdivision. The wage provisions for the Subdivision, which is operating under the Code of the Machinery and Allied Products Industr}-, provide that employees engaged in plant operations shall be paid as follows: (1) in cities of more than 50,000 population and their immediate vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not more than 50,000 population and their immediate vicinity, which cities are not in the immediate vicinity of a city of more than 50,000 population, 38 cents per hour; (3) in cities of 10,000 population or less and their immediate vicinity, which cities are not in the immediate vicinity of a city of more than 10,000 population, 36 cents per hour, except that employees engaged in plant operations in all localities in the states of Virginia, North Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, Mississippi, Arkan- sas, Louisiana, Texas, and Oklahoma, shall be paid not less than 32 cents per hour. When females do substantially the same work as males or replace males, they shall receive the same pay. However, no female employee shall be paid less than 87%% of the proper rate for the locality in which employed. Employees other than those engaged in plant operations shall re- ceive not less than $15.00 per week. Office boys and girls and apprentices shall be paid not less than 80% of the minimum wage. This Supplemental Code provides that no person under sixteen years of age shall be employed in this Subdivision. RESUME OF SUPPLEMENTAL CODE Article I states the purpose of the Supplemental (/ode. Article II accurately defines specific terms applicable to the Sub- division as used in this Supplemental Code. Article III provides for the adoption of the employment provi- sions of the Code of Fair Competition for the Machinery and Allied Products Industry as approved by you and as from time to time amended. Article IV provides for the adoption of Articles II, VI, and VI1T, of the ('ode of Fair Competition for the Machinery and Allied Products Endustry in accordance with the conditions of this Article governing their adoption. Article V provides for the establishment of the Code Authority and defines its powers and duties. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article All provides thai no products shall be sold or exchanged below a reasonable cost when the Code Authority determines that an emergencv exists. Article VIII provides for methods of setting tip, revising, and filing price lists and discount sheets and terms of sale and payment. Article IX sets forth trade practices for the Subdivision. Article X provides that no provision of this Supplemental Code relating to pricing and marketing shall apply to export sales. Article XI : This Supplemental Code and all the provisions thereof are expressly made subject to the right of the President in accordance with 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. Provision is also made that modi- fications may be submitted bjr the Code Authority to the Adminis- trator for approval. Article XII provides means for withdrawal of this Subdivision from the Basic Code and its continuance as an autonomous Code. Article XIII establishes that no provision of this Supplemental Code shall be so applied as to permit monopolies and monopolistic practices as to eliminate, oppress, or discriminate against small enterprises. Article XIV states the effective date of this Supplemental Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter : I find that : (a) Said Supplemental 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 purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 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 ap- plicant association is an industrial association truly representative of the aforesaid Subdivision; and that said Association imposes no in- equitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not per- mit monopolies or monopolistic practices. 6 (e) The Supplemental Code is not designed to and will not elim- inate or oppress small enterprises and will not operate to discrim- inate 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 the said Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to accounting and costing, selling below reasonable cost, price lists, and unfair trade practices are stayed as stated in the Order. Respectfully, Hugh S. Johnson, Administrator. July 30, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE REFRIGERATING MACHINERY INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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- mental Code of Fair Competition for the Refrigerating Machinery Subdivision of the Machinery and Allied Products Industry, and together with the Code of Fair Competition for the Machinery and Allied Products Industry, shall be the standard of fair competition for this Subdivision, and shall be binding on every Employer therein. Article II — Definitions "Applicant " means the Refrigerating Machinery Association, a trade organization, ail members of which are engaged in the manu- facture for sale of the products of the Refrigerating Machinery Subdivision of the Machinery and Allied Products Industry. " Industry " means the Machinery and Allied Products Industry, as defined in its Code as approved by the President, and as such defini- tion may from time to time be amended. " Subdivision " means the Refrigerating Machinery Subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph 26, Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows : " Refrigerating Machinery Subdivision " means the engineering, design, and production of commercial and industrial ice making and refrigerating machinery and equipment incidental thereto. It is expressly stated for the purposes of -this Code that it is to apply to the engineering, design, manufacture, and sale, as well as erection and/or installation of such machinery and equipment incidental thereto. Any work or process incidental to and carried on by an Employer at his plant or elsewhere as a part of the manufacture of any product of the Subdivision shall be governed by the provisions of this Code rather than any other Code. " Code " means the Code of Fair Competition for the Machinery and Allied Products Industry as approved by the President, March 17, 1934, and as from time to time amended. "Person" means a natural person, a partnership, a corporation, an association, a trust, a trustee, a trustee in bankruptcy, a receiver or other entity. "Employer " means any person engaged in this Subdivision either on his own behalf or as an employer of labor. "Employee " means any one who is employed in the Subdivision by any such Employer. 77106° 829-167 34 2 (7) 8 "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 product classification within this Subdivision. "Publish " means to make available to the public. Article III — Employment Provisions The following Articles of the Code, viz ; Article III, " Working Hours " ; Article IV, " Wages " ; and Article V, " General Labor Provisions " are hereby made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Article IV— Adoption or Other Provisions of Code The following Articles of the Code, viz ; Article II, " Defini- tions "; Article VI, 'Administration ", to the extent that they shall be applicable to this Supplemental Code as such or as it may here- after be administered as an autonomous Code; and Article VIII, " Modifications and Termination ", are hereby adopted and made a part of this Supplemental Code with the same effect as if they were written into this Supplemental Code. Article V — Administration x (a) The permanent Code Authority to administer, supervise and to facilitate the enforcement of the Code and this Supplemental Code, heretofore duly elected in accordance with Article VI, Sec- tion (g) of the Code, shall be (if such method of election is approved by the Administration) the Code Authority of this Sub- division until its successors are duly elected and qualified in accord- ance with the procedural rules and regulations of this Subdivision (duly adopted in accordance with Article VI. Section (g) of the Code) and with the following sections of this Article V. When its successors shall have been duly elected and qualified, they shall con- stitute the Permanent Code Authority. (b It being found necessary in order to support the Administra- tion of this Supplemental Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Code Authority is authorized : 1. 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 Code; 1 See paru^niph 2 of order approving tills Code. 9 2. To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem necessary : (A) An itemized budget of its estimated expenses for the foregoing purposes, and (B) An equitable basis upon which the funds necessary to support such budget shall be contributed by all employers of the Subdivision; (C) After such budget and basis of contribution have been approved by the Administrator, to determine and obtain equitable contributions as above set forth by all employers of the Subdivision, and to that end, if necessary, to institute legal proceedings therefor in its own name. 3. Each employer of the Subdivision shall pa}' his or its equitable contribution to the expenses of the maintenance of the Code Author- ity, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Administrator. Only employers of the Subdivision complying with the Code and con- tributing to the expenses of its administration, as hereinabove pro- vided, unless duly exempted from making such contributions, shall be entitled to participate in the selection of the members of the 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 Administration. 4. The Code Authority shall neither incur nor pay any obliga- tion in excess of the amount thereof as estimated in its approved budget, except upon approval of the Administrator; and no subse- quent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Administra- tor shall have so approved. (c) 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 prescribe such hearings 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. (d) Action by Employers in any Subdivision meeting for the election of Code Authority shall be by vote of the Employers entitled to vote as provided in Section (b3) of this Article V, and who are present in person or by proxy, each such Employer to have one vote only. (e) Action by Employers in any Subdivision meeting for the adoption of procedural rules, revisions or additions to the Supple- mental Code, or the transaction of other business of the Subdivision under this Supplemental Code, shall be by vote of the Employers who are entitled to vote thereat as provided in Section (b3), Article V of this Supplemental Code and are present in person or by proxy duly executed and filed with Code Authority; cast and computed in the manner provided in Section (d), Article VI of the Code. All questions as to the number of votes which each Employer shall be entitled to cast at any meeting of Employers other than the meet- ing held to vote for the election of the permanent Code Authority 10 shall be determined by Code Authority, in accordance with Sec- tion (d), Article VI of the Code. (f ) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for adminis- trative purposes. There shall be a Group Code Authority approved or appointed by Code Authority for each such group. (g) If formal complaint is made to Code Authority that provi- sions of this Supplemental Code have been violated by any Employer, Code Authority or the proper Group Code Authority shall investi- gate the complaint, and to that end, may to the extent permitted by the Act, cause such investigation, examination or audit to be made, as may be deemed necessary. If such investigation is made by Group Code Authority, it shall report the result of such investigation or audit to Code Authority for action. (h) The Code Authority may appoint a Trade Practice Commit- tee which shall meet with the Trade Practice Committees appointed under such other Codes as may be related to the Subdivision for the purpose of formulating fair trade practices to govern the relation- ships between production and distribution Employers under this Supplemental Code and under such others to the end that such fair trade practices may be proposed to the Administrator as amend- ments to this Supplemental Code and such other Codes. Article VI 1 — Accounting and Costing The 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 this 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 1 — Selling Below Reasonable Cost Section 1. When the Code Authority determines that an emer- gency exists in this Subdivision and that the cause thereof is de- structive price-cutting such as to render ineffective or seriously en- danger the maintenance of the provisions of this Supplemental Code, the Code Authority may cause to be determined the lowest reasonable cost of the products of this Subdivision, such deter- mination to be subject to such notice and hearing as the Adminis- trator 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 employer of the Subdivision to sell or offer to sell any products of the Subdivision for which the lowest reasonable cost lias been determined at such prices or upon such terms or conditions of sale that the buyer will pay herefor than the lowest reasonable cost of such product-. When it appears that conditions have changed, the ("ode Author- ity, upon its own initiative or upon the request of any interest! 1 party, shall cause the determination to be reviewed. 1 See paragraph 2 of order approving this rode. 11 Section 2. The foregoing Section (1) shall not apply to (a) dropped lines, or (b) seconds, or (c) inventories which must be converted into cash to meet emergency needs, all of which may be disposed of by any employer at any price and on any terms or con- ditions, but only if such employer, not less than two weeks before such proposed disposal, has filed with Code Authority a statement in writing setting forth the facts of, and reasons for, such proposed disposal and the price terms and conditions of sale, and Code Au- thority has not, (with the approval of the Administrator), before the termination of such two week period, in writing, disapproved the proposed disposal. Notice of such disposal, if not disapproved, shall be sent immediately to all employers manufacturing products of equivalent design, character, quality or specifications, who may sell such products at prices and on terms and conditions as favor- able as those stipulated in the proposed disposal, when meeting the competition of such proposed disposal. Section 3. The foregoing Section (1) shall not apply to a sale made in order to meet competition on products manufactured out- side the United States. For such disposal, any employer may sell, at prices and on terms and conditions as favorable as those of the competing foreign product, but only if he has first reported to the Code Authority his intention so to sell, and the facts as to the competition which justifies such action. Article VIII 1 — Price Lists (a) If and when the Code Authority of this Subdivision deter- mines that in any branch or group of the Subdivision it has been the generally recognized practice to sell a specified product on the basis of net price lists, or price lists with discount sheets, and terms of sale and payment, each employer shall, within ten (10) days after notice of such determination, file with the Code Authority a net price list, or a price list and discount sheet, as the case may be, individually prepared by him, showing his current prices, or prices and discounts, and terms of sale and payment, for such specified product, and the Code Authority shall immediately publish and send copies thereof to all known employers who are cooperating in this Supplemental Code as described in Section (b3) of Article V hereof. Revised price lists and/or discount sheets and/or terms of sale and payment for such product may be filed from time to time there- after with the Code Authority by any employer, but such revised price lists and/or discount sheets and/or terms of sale and payment shall be filed with the Code Authority ten (10) days in advance of the effective date. Copies of such revised price lists and/or discount sheets and/or terms of sale and payment, for such product, with notice of the effective date specified, shall be immediately published and sent to all known employers who are cooperating in this Sup- plemental Code as described in Section (b3) of Article V hereof, any of whom may file, if he so desires, to become effective upon the date when the revised price list and/or discount sheet and/or terms of sale and payment first filed shall go into effect, revisions of his price 1 See paragraph 2 of order approving this Code. 12 lists and/or discount sheets and/or terms of sale and payment estab- lishing prices or prices and discounts not lower or terms of sale and payment not more favorable than those established in the revised price lists and/or discount sheets and/or terms of sale and payment first filed. Nothing in the foregoing shall constitute a limitation upon the right of any employer to file revised lists fixing his own prices, discounts and/or terms of sale and payment, which prices and discounts may be either more or less favorable than those con- tained in any other price list, to be effective as provided in the first sentence of this paragraph. 1 (b) If and when the Code Authority shall determine that in any branch or group of the Subdivision not now selling its product on the basis of price lists, with or without discount sheets, with terms of sale and payment, the distribution or marketing conditions in said branch or group are the same as, or similar to, the distribution or marketing conditions in a branch or group of the Subdivision where the use of price lists, with or without discount sheets, and/or terms of sale and payment, is well recognized, and that a system of selling on net price lists or price lists and discount sheets with terms of sale and payment for such product should be put into effect in such branch or group, then each employer of such branch or group shall within ten (10) days after notice of such determination, file with the Code Authority net price lists or price lists and discount sheets, containing terms of sale and payment, showing his current prices and discounts and terms of sale and payment, and such price lists and/or discount sheets and/or terms of sale and payment may be thereafter revised in the manner hereinabove provided ; and such methods of pricing and revisions thereof shall be " published and sent " as described in Ar- ticle VIII (a) ; provided, however, that the Code Authority shall make no determination to place any product of the Subdivision (not now on a price list basis) on a price list basis, as provided in this paragraph (b) of Article VIII, unless the employers who are at that time engaged in manufacturing such product and are at that time cooperating, have given their affirmative consent to such deter- mination. The eligibility requirements, method and effect of such voting shall be the same as provided in section (e) of Article V. Each employer shall prepare and shall furnish the Code Authority for distribution with such number of copies of his price lists and/or discount sheets and/or terms of sale ami payment as Code Author- ity may prescribe. (c) 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 and payment, different from those provided in his own current net price lists, or price lists and discount sheets, provided that nothing in the above shall prevent an employer from adding to his "\\ o pi and or price list and discount sheets by increasing his job price to include unusual selling, engineering, servicing, financing, financial risks, or other similar special charges provided, however, that in the event of an employer quoting a higher price than the price published in his own price list and or price list and discount sheets, to take 'Sec paragraph l' of order approving this « '<>ile. care of unusual selling, engineering, servicing, financing, financial risks, or other similar special charges, he shall not subsequently quote a lower price on said prospective sale than that price first quoted, except in accordance with revised price lists duly filed or unless he simultaneously eliminates part or all of the unusual engi- neering, servicing, financing, financial risks or other similar special charges, for which a corresponding reduction only may be made. (d) Wherever by the provisions of this Article VIII an employer is or may be required to or permitted to file terms of sale and pay- ment, such terms shall mean usual or standard terms, and to cover any special and/or unusual terms definite formulae for determining such special and/or unusual terms shall be filed. (e) If and when Code Authority shall determine that it is unde- sirable to continue the filing of net price lists and/or price lists with discount sheets and/or fixed terms of sale and payment on any product in respect of which such filing has heretofore been required, such filing shall cease and the provisions of this Article shall not apply to such product unless and until Code Authority shall again determine that such filing be made. (f ) The Code Authority shall from time to time, with the approv- al of the Administrator, formulate, prescribe and distribute to persons in the Industry regulations with respect to minimum cash payments, and/or maximum deferred terms, and/or carrying or finance charges. Article IX 1 — Unfair Trade Practices The following practices constitute Unfair Methods of Competi- tion for employers of the Subdivision. They are prohibited and are in violation of this Code : 1. No Employer shall knowingly make any misrepresentation in connection with the sale or advertisement for sale and/or marketing of any products of this Subdivision with the intent or effect of mis- leading or deceiving buyers, or prospective buyers, regarding their quality, composition, or service features. 2. No emplo} r er 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, the princi- pal of such agent or the represented party, without the knowledge of such Employer, principal or party. This Commercial bribery provision shall not be construed to prohibit free and general distri- bution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. 3. No employer shall induce or attempt to induce by any means any party to a commercial agreement with another Employer to violate such agreement. 4. No Employer shall secretly offer or make any payment or allowance of a rebate, refund, commission credit, unearned discount or excess allowance, whether in the form of money or otherwise, nor 1 See paragraph 2 of order approving this Code. 14 shall any Employer 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. 5. No Employer shall publish or circulate threats of suits for in- fringement of patents or trade marks, or of any other legal proceed- ings not made in good faith, with the tendency or effect of harassing competitors or intimidating their customers. 6. No Employer shall procure, otherwise than with the consent of any other employer, any information concerning the business of such employer, which is properly regarded by such employer as a trade secret or confidential within his or its organization. 7. No Employer shall accept a contract wherein the Employer as- sumes responsibility for indirect or consequential damages nor shall any Employer grant a guaranty covering defective workmanship, material or design to extend for a longer period than one year. The term " indirect or consequential damages " is defined to mean dam- ages (1) other than, or in excess of, the reasonable cost of repairing or replacing any defective machinery, equipment or parts furnished by the Employer under the contract, or (2) other than stipulated, liquidated damages relating to delivery, completion and/or performance. 8. No Employer shall guarantee cost of power consumed or cost of products produced by products of the Subdivision. 9. No Employer shall, except in order to comply with the written specifications of any agency of the Federal Government, State Gov- ernment, or any Subdivision thereof, accept contracts embodying penalty or bonus clauses relative to dates of completion of contracts. 10. No Employer shall guarantee cost of maintenance of products of the Subdivision. 11. No Emplo3 r er shall make an allowance or trade-in value to a buyer for used or second-hand products. 12. No Employer shall indulge in destructive price-cutting. Article X — Sales for Export The provisions of this Supplemental Code concerning pricing and marketing shall not apply to direct export sales of any product. A similar exemption may be granted by the Code Authority as to sales of any product destined ultimately for export. The term " export trade" wherever used in this Code means solely trade <>r commerce in goods, wares, or merchandise exported, or in the course of being exported from the United States or any Territory thereof to any foreign nation; but the words "export trade" shall not be deemed to include the production, manufacture, or selling for consumption or for resale, within the United States or any Territory thereof, of such goods, wares, or merchandise, or any act in the course of such production, manufacture, or selling for consumption or for resale. Article X [ — Modifications (a) As provided by Section lo (b) of the Act. the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title 1 of the Act. Any amend- ments, additions, revisions or supplements of this Supplemental 15 Code authorized by the affirmative vote of 66%% of the Employers in this Subdivision shall be in full force and effect upon approval by the Administrator. The eligibility requirements, method and effect of such voting shall be the same as provided by Article V, Section (e) hereof. Article XII — Withdrawal Upon thirty (30) days' notice to the Basic Code Authority and to the Administrator, this Subdivision may, upon the concurring affirmative vote of Employers, within the said Subdivision entitled to cast two-thirds or more of all the votes that might be cast by all Employers within the Subdivision entitled to vote thereon, withdraw from the jurisdiction of the Basic Code Authority. The eligibility of voters shall be in accordance with Article V, Section (b3) and the method and effect of such voting shall be in accordance with the provisions of Article V, Section (e) hereof. After and in the event such withdrawal is accomplished this Supplemental Code, together with the provisions of the Code shall become and be the sole code governing this Subdivision, and the Code Authority shall for this Subdivision become* and be the sole Code Authority and shall per- form all the functions with respect thereto. Article XIII — Monopolies Applicant imposes and shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopoly, and shall not be 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 XIV — Effective Date This Supplemental Code shall become effective and binding on all employers engaged in the Subdivision on the eleventh day after, its approval. Approved Code No. 347 — Supplement No. 30. Registry No. 132S-09. O ui linn 3 1262 08853 8300