Approved Code No. 347 — Supplement No. 19 Registry No. 1312—04 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE HOISTING ENGINE MANUFACTURING INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JUNE 12, 1934 V/E DO OUR PART UNiV, O^FL U ... Ot.-t:: lull I I I IWWW>*W— UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washinston, D.C. ••..•■•• Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing OflBce, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT Ol' COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala.: 257 Federal Building. Boston, Mass.: 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. 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Approved Code No. 347 — Supplement No. 19 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE HOISTING ENGINE MANUFACTURING INDUSTRY As Approved on June 12, 1934 ORDER SurPLEMENTARY CODE OF FaiR COMPETITION FOR THE HoiSTING ENGINE Manufacturing Industry a di\r[sion 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 Hoisting Engine Manu- facturing Subdivision of Machinery and Allied Products Industry, and hearings 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 Presi- dent, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise ; do hereby incorporate by reference said annexed report and do find that said 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 condition 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 inr the Supplemental Code) and the effective date of price lists, as originally filed and/or revised price lists or revised terms and con- ditions of sale, be and they hereby are stayed pending my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glancy, Division Administrator. Washington, D, C, June 12, 193J^. 67074° 657-103 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Competi- tion for the Hoisting Engine Manufacturing Subdivision of the Machinery and Allied Products Industry, public hearing having been conducted thereon in Washington, D.C., December 8, 1933, and reconvened December 21, 1933, in accordance with the provisions of Title I of the National Industrial Recovery Act. Every person who filed a request for an appearance was freely heard in public and all statutory and regulatory requirements were complied with. GENERAL STATEMENT The Hoisting Engine Manufacturers Association, being truly representative of this Subdivision of the Machinery and Allied Prod- ucts Industry, has elected to avail itself of the option of submitting a Supplemental Code of Fair Competition, as provided in paragraph (2), Article I of the Basic Code for the Machinery and Allied Prod- ucts Industry approved by you on the seventeenth day of March, 1934. This Subdivision represents a part of the capital goods industry, manufacturing and selling power-operated hoisting and winding en- gines such as are used in construction work, sand and gravel opera- tions, logging and dredging and special modifications thereof, in- cluding accessory equipment used therewith such as derricks, whirlers and cableways, and spare, repair and replacement parts thereof, but not including the type commonly known as mine hoists, ECONOMIC EFFECT No estimate of the total employment is available, but it has been assumed that the trend reflected by summarized questionnaire returns from fourteen establishments is representative of the rate of decline in employment for this Subdivision of the Industry as a whole. This subdivision of the Industry is still suffering from the effects of the depression. Annual sales decreased approximately 82 per cent and employment approximately 63 per cent from 1929 to 1932. Approximately 50 per cent of the employees in June, 1933, were working more than 40 hours per week and 14 per cent were receiving less than 40 cents per hour with the minimum wage ranging between 25 and 30 cents. From the statistics available, the average work-week in 1929 amounted to 52.2 hours, decreasing to an average of 35.4 hours per week for tlie first six months of 1933. (2) The minimum hourly rates in the approved Basic Code consist of one differential for the South and three city population differ- entials for all other sections of the United States, as follows: Over 50,000 population 40^ per hour Over 10,000-50,000 population 38v' per hour 10,000 population and under 36^' per hour South 820 per hour In addition to the minimum wage rates shown above, the Basic Code provides that women engaged in substantially the same work as men shall receive the same rate of pay as such men employees; that the minimum wage for women emploj'ees engaged in plant operations shall be not less than 87.5 per cent of the proper rate for the locality in which employed as specified ; and that the minimum in the South shall not be less than 32 cents per hour. Based on the distribution as of June 15, 1933, and on the specified percentages of the number of workers receiving less than the desig- nated rates as shown in the table below, the adoption of the proposed minimum rates will probably cause an increase in factory payrolls. The estimated increase as of June 15, 1933, regardless of location of the workers, will probably, under the most favorable conditions, not exceed 1.5 per cent assuming only upward adjustment in the brackets below the 40 cent minimum and no change in man-hour requirements. Estimated numher of factory workers receiving less than designated hourly rates Minimum hourly rates Distribution of factory worlcers receiving less thau the minimum re- gardless of location Approximate percent Approximate number 40 cents (other U.S.) 38 cents (other U.S.) accents (other U.S.) 32 cents (South) RESUME OF THE SUPPLEMENTAL CODE Article I states the purpose of the Supplemental Code. Article II accurately defines specific t^rms employed in this Sup- plemental Code. Article III. The labor provisions of the Basic Code for the Ma- chinery and Allied Products Industry as approved March 17, 1934, are incorporated by reference as the labor provisions of this Supple- mental Code. Article IV adopts the relevant portions of Article VI, "Adminis- tration " ; and Articles VIII, " Modifications and Termination ", and IX, " Withdrawal " of the Basic Code for the Machinery and Allied Products Industry, as approved March 17, 1934. Article V establishes a Code Authority consisting of four members. One additional member may be elected from the nonmembers of the applicant association if so desired by such nonmembers. The Ad- ministrator in his discretion may appoint one additional member (without vote and without expense to the Subdivision). Together with the applicable provisions of the Basic Code, mechanism is provided for the administration of this Supplemental Code. Article VI provides for an accounting system and methods of cost finding and for estimating. Article VII provides for the determination of a lowest reasonable cost during an emergency caused by destructive price-cutting and provides exceptions thereto as regards distress stocks and on products of similar design and imports. Article VIII provides for methods of setting up, revising and filing price lists and discount sheets and terms oi sale and payment. Article IX provides certain standards as to prices, terms and con- ditions of payment, peculiar to this Subdivision, with a view of eliminating unfair competition in this Subdivision. Article X sets forth the unfair trade practices which have been especially designed to effect fair competition in this Subdivision. Article XI defines export territory and provides that filed price lists are not applicable to export shipments. Article XII contains the mandator}'^ provisions contained in Sec- tion 10 (b) of the Act and also provides for the submission of pro- posed amendments to the Supplemental Code. Article XIII provides for the withdrawal of this Subdivision from jurisdiction of the Basic Code and for the continued functioning of this Subdivision as an individual industry under its own code. Article XIV stipulates that there shall be no inequitable restric- tions and provides against monopolies. Article XV gives the effective date of this Supplemental Code. FINDINGS The Deputy Administrator in his final report to me on said Sup- plemental 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 w^ell designed to promote the poli- cies and purposes of Title I of the National Industrial Kecovery 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 organization of industry for the purpose of cooperative action among the trade groups by inducing and maintaining united action of labor and man- agement under adequate governmental sanctions and supervision, 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 tempo- rarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by re- ducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 em- ployees, and is not classified by me as a major industry. (c) The Supplemental Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid subdivision of the industry; and that said associa- tion imposes no inequitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elimi- nate or oppress small enterprises and will not operate to discriminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication are stayed as stated in the order. Eespectfully, Hugh S. Johnson, Administrator, June 12, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE HOISTING ENGINE MANUFACTURING INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supple- mental Code for the Hoisting Engine Manufacturing Subdivision of the Machinery and Allied Products Industry', and together with the Code of Fair Competition of JSIachinery and Allied Products In- dustry shall be the standard of fair competition for this subdivision, and shall be binding on every emploj'er therein. Article II — Definitions "Applicant " means the Hoisting Engine Manufacturers Associa- tion, a trade organization, which organization is trul}' representative of this subdivision, all members of which are engaged in the manu- facture for sale of the products of the Hoisting Engine Manufactur- ing Subdivision of the Machinery and Allied Products Industry. " Industry " means the Machinery and Allied Products Industry, as defined in its National Industrial Recovery Code as approved by the President, and as such definition may from time to time be amended. " Subdivision " means this Hoisting Engine Manufacturers sub- division of the Machinery and Allied Products Industry as defined and set forth in Paragraph fourteen of Article II of the National Industrial Recovery Code of the Machinery and Allied Products Industry as follows : Hoisting Engine Manufacturing Subdivision means the manufac- ture for sale of power-operated hoisting or winding engines such as are used in construction work, sand and gravel operations, logging, and dredging, and special modifications thereof, including accessory equipment used therewith such as derricks, whirlers, and cableways, and spare, repair and replacement parts thereof, but not including the type commonly known as mine hoists, and includes all those en- gaged in such manufacture for sale. The foregoing Definition shall not permit the manufacture for sale under this Supplemental Code of electrical products included within the scope of the Electrical INIanufacturing Industry as de- fined in the Code of Fair Competition for said Industry, except where such electrical products are sold as a part of the products of this Subdivision and are not sold as separate electrical products in competition with similar products included within the scope of the Electrical Manufacturing Industry as defined in the Code of Fair (6) Competition for said industry; provided, however, that any em- ployer hereunder may manufacture and sell under this Supplemental Code any spare and/or replacement parts of any such electrical products for use with products defined hereunder, which were originally manufactured and sold by him. Wlien carried on at the point of installation, the work of install- ing, erecting, rebuilding and/or servicing of the products of the Subdivision, (including attachments, accessories and/or replacement and repair parts therefor, included within the definition of the Subdivision) shall be subject to the provisions of this Supplemental Code, only when performed by the employer hereunder selling such products or by a company affiliated therewith. " Code " means the National Industrial Recovery Code of the Machinery and Allied Products Industry, as approved by the Presi- dent, 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 the 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. " 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. " New Products " shall mean a machine or attachment which has not previously been sold and placed in the possession of a purchaser, nor rented or used as a demonstrator prior to the approval of this Supplemental Code. Article III — Employiment Proatesions 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 of Other Peom:sions of Code The following Articles of the Code, viz ; Article VI, "Administra- tion ", to the extent that it shall be applicable to the administration of this Supplemental Code as such or as it may hereafter be ad- ministered as an autonomous Code ; Article VIII, " Modifications and Termination"; and Article IX "Withdrawal", are hereby adopted and made a part of this Supplemental Code with the same effect as if they were written into this Supplemental Code. Akticlb V — Administilvtion ^a^ The Code Authority for this Subdivision shall consist of: (1) The Executive Committee of Applicant, consisting of four members. (2) One additional member may be elected in any fair manner with the approval of the Administrator, by cooperating employers in this Subdivision not members of the Applicant, if so desired by such non-members. (3) The Administrator, in his discretion, may appoint one ad- ditional member (without vote and without expense to the Subdivision.) Any vacancy on the Code Authority due to death, resignation, or because a member thereof has ceased to be connected with this Sub- division shall be filled at a meeting of employers called by the Code Authority on at least ten days' notice by registered mail sent to all employers in this Subdivision, and in a manner similar to the manner in which the retired member was originally selected. (b) Any employer in this Subdivision shall be eligible for mem- bership in Applicant. (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 provide such hear- ings as he may deem proper ; and thereafter if he shall find that the Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Code Authority, or any Group Code Authority. Action by employers in any Subdivision meeting for the adoption of procedural rules, revisions or additions to this Supplemental Code, or the transaction of other business of the Subdivision shall be by vote of emploj^ers entitled to vote as provided in this Article V, who are present in person or by proxy duly executed and filed with Code Authority. Any such action taken at any meeting of em- ployers shall be by majority vote cast and computed on the basis of one vote for each employer, unless otherwise provided in this Sup- plemental Code. (d) Any employer in this Subdivision shall be entitled to vote* at the election of (subject to Section (a) hereof) and share in the benefits of the activities of tlie Code Authority and may participate in any endeavors of the Code Authority in the preparation of any re\isions of, or additions or supplements to this Supplemental Code by paying his proper pro-rata share of the reasonable cost of adminis- tering it, as determined by the Code Authority. (e) If formal complaint is made to Code Authority, that provi- sions of this Supplemental Code have been violated by any employer, the Code Authority may, to the extent permitted by the Act, cause such investigation or audit to be made, as may be deemed necessary. Article VI — 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 in the Subdivision. After such system and methods have been formulated, full details concerning them shall be made available to all employers. Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such methods. Article VII — Selling Below Keasonable Cost (a) When the Code Authority determines that an emergency exists in this Subdivision and that the cause thereof is destructive price- cutting such as to render ineffective or seriously endanger the mainte- nance of the provisions of this Supplemental Code, the Code Author- ity may cause to be determined the lowest reasonable cost of the prod- ucts of this Subdivision, such determination to be subject to such notice and hearing as the Administrator may require. The Admin- istrator 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 product of the Subdivision for which the lowest reasonable cost has been determined, at such prices or upon such terms or condi- tions of sale that the buyer will pay less therefor than the lowest reasonable cost of such products. When it appears that conditions have changed, the Code Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. (b) The foregoing Section (a) shall not apply to (1) dropped lines, or (a) seconds, or (3) 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 conditions, 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 and terms and conditions of sale, and Code Authority has not, with the approval of the Administrator, before the termina- tion 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, and participating in this Supplemental Code as described in Article V, Section (d), who may sell such products at prices and on terms and conditions as favor- able as those stipulated in the proposed disposal. (c) When prices of competing products manufactured outside the United States are lower than the established lowest reasonable cost, any employer may sell at prices and on terms and conditions asf favorable as those of the competing foreign product. 10 Article VIII — Price Lists (a) If and when the Code Authority determines that in any ^roup of the Subdivision it has been the generally recognized practice to sell a specified product on the basis of printed net price lists, or price lists with discount sheets, and fixed terms of sale and pay- ment, each employer shall, within ten days after notice of such determination, file with the Code Authority a net price list, or a price list with discount sheet, as the case may be, individually pre- pared b}' him, showing his current prices, or prices and discounts, shipping weights, and terms of sale, and payment and the Code Authority shall immediately publish and send copies thereof to all employers who are cooperating under this Supplemental Code. Kevised price lists and discount sheets and terms of sale and payment ma}' be filed from time to time thereafter with the Code Authority by any manufacturer of such product, to become operative upon the date specified therein, but such revised price lists and dis- count sheets and terms of sale and payment shall be filed with the Code Authority not less than ten days in advance of the effective date. Copies thereof, with notice of the effective date specified, shall be immediately published and sent to all known manufacturers of such product, who are cooperating under this Supplemental Code, any of whom may file, if he so desires, revisions of his price lists and discount sheets and terms of sale and payment, which shall become effective upon the date when the revised price list and discount sheets and terms of sale and payment first filed shall go into effect.^ (b) If and when the Code Authority shall determine that in any gi'oup of the Subdivision not now selling its product on the basis of price lists, with or without discount sheets, with fixed terms of sale and payment, the distribution or marketing conditions in the group are the same as, or similar to, the distribution or marketing conditions in a group where the use of price lists, with or without discount sheets, and fixed terms of sale and payment is well recog- nized, and that a system of selling on net price lists or price lists and discount sheets with fixed terms of sale and payment should be put into effect in such group, then each manufacturer of the product or products of such group shall within twenty days after notice of such determination, file with the Code Authority net price lists or price lists and discount sheets, with fixed terms of sale and payment, showing his current prices and discounts and terms of sale and pay- ment, and such price lists and discount sheets and terms of sale and payment may be thereafter revised in the manner hereinbefore provided. Provided that Code Authority shall make no determina- tion, 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 affirmative consent to such determination is given by a CG%% vote of employers who are coojx^ratin^ under this Supplemental Code and who are at that time engaged in manufac- turing such products. (c) No employer shall sell directly or indirectly by any means whatsoever, any product of the Subdivision covered by provisions * See paragraph 2 of order apiinoving this Code. 11 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, and terms of sale and payment. Article IX — Prices, Terms and Conditions of Payment (a) Any place at which a manufacturing plant producing a prod- uct of this Subdivision is established may be used as a place from which the freight shall be added to the filed price of the product, provided that the employer specifies such place or places in his published price list. All prices and quotations made by an employer shall be F.O.B. such specified place or places. (b) New machines or attachments shall be sold only under firm sales contracts or firm purchase orders, and such contracts or orders shall provide for shipment within six months of the date the con- tract or order is signed by the purchaser. (c) When sales of a new product are made on a net cash basis, and no cash discount is involved, the contract of sale shall provide that full payment in cash or negotiable check be made by purchaser within thirty days from the date of shipment. When, however, full payment is made within ten days from date of shipment, a cash dis- count of not to exceed five percent (5%) of the F.O.B. price maj^ be allowed. (d) In the case of sale of a new product to an ultimate consumer on deferred payment terms, a cash payment of not less than twenty- five percent of the total sales price must be required, and the unpaid balance of the purchase price shall be made payable in equal monthly installments, the first installment to be payable in not more than thirty days, and the last installment to be payable in not more than nine months from the date of shipment. All installments shall be evidenced by notes bearing date oi the day of shipment, and draw- ing interest at not less than six percent per annum therefrom unless the laws of the particular State governing the contract stipulate otherwise as to interest rate chargeable. (e) All contracts for the sale of a new product shall require the payment in lawful money of the full current price of such product. (f ) In the sale of a new product, no express guaranty of materials and workmanship shall be made to be effective beyond twelve months after date of shipment. (g) Employer's guarantee of performance for any machine shall be limited to an agreement to duplicate performance claimed in his published literature using uniform methods for testing prescribed by the Code Authority and approved by the Administrator. No sale of a new product shall be made subject to acceptance after a trial or demonstration on the purchaser's job, except that in the case of the first new product of any distinctly new type or size, with new model designation, if no product of the same type and size has previously been sold, or in any case where a product may be sold to be employed for a distinctly recognized new use, any employer may include in the contract of sale a provision permitting rescission of the contract by the customer within ninety (90) days from date of shipment. 12 (h) Xo em[)l<)yor sliall sell his product on an}- but the unit price bssis. (i) No eiuployer of the Subdivision shall require that the purchase or lease of any products of the Subdivision be a prerequisite to the purchase or lease of any other products. Article X — Unfair Practices Each of the following acts and practices is deemed to be inimical to the best interest of the Subdivision, and of the public and each is, therefore, hereby declared to be, and to constitute, an unfair method of competition and is hereby prohibited; viz: 1. The secret payment or allowance of a rebate, refund, commis- sion, credit, unearned discount, or excess allowance in the form of money or otherwise, or the offering or extending to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing the sale. 2. The payn^ent, or promise to pay to any agent, fiduciary, or representative, of money or valuable thing, with or without the knowledge of his principal, for the purpose of influencing any sale to his principal. This provision shall not be construed to prohibit free and general distribution of articles commonly used for advertis- ing, except so far as such articles are actually used for commercial bribery as hereinabove defined. 3. An}'^ discrimination between purchasers of the same class, by the sale of any article having a published price, at any price below the seller's published price, by means of direct or indirect price con- cessions, or by means of any privilege not extended to such pur- chasers generally. 4. No employer of the Subdivision shall publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, nor shall any employer in any way misrepresent any goods (including but without limitation its use, trade-mark, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation) or credit terms, values, policies, services, or the nature or form of the business conducted. 5. The publishing or circularizing of threats of suits for infringe- ment of patents or trademarks, or of any other legal proceedings, not in good faith, which would tend to harass competitors or intimidate their customers. 6. The renting of any new product where the object is to convert the transaction into a sale, provided however that this Section (6) shall not prevent the renting of products of the Subdivision on Bail- ment leases in those states where such transactions are legally recognized. 7. The engaging in destructive price-cutting by any employer in this Subdivision. Article XI — Sales for Export The provisions of this Supplemental Code concerning pricing and marketing are not to apply to direct export sales of an}' product. A 13 similar exemption may be granted by the Code Authority as to sales of any product destined ultimately for export. Unless otherwise determined by the Code Authority, the term " export " shall include shipments to all places without the several states of the United States and the District of Columbia ; provided, however, that no shipment to any territory or possession of the United States shall be consid- ered an export when any employer is engaged in the Subdivision in such territory or possession. Article XII — Modificatioxs (a) As provided by Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act, (b) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority, and approved by a seventy-five percent vote of the cooperating employers, 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, hereof. Article XIII — Withdrawal Upon thirty (30) days' notice to Basic Code Authority and to the Administrator, this Subdivision may, upon the affirmative vote of not less than 66%% of the employers within the Subdivision with- draw from the jurisdiction of Basic Code Authority. The eligi- biliity of voters and the method and effect of such voting shall be in accordance with the provisions of Article V hereof. Thereafter, this Supplemental Code, together with the provisions of the Code, except such portions of Article I, II, VI and VII as are not perti- nent thereto, as determined by the Code Authority and Administra- tor, shall become and be the code governing this Subdivision and the Code Authority shall for this Subdivision, become and be the only Code Authority, and shall perform all the functions with respect thereto. Article XIV — 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 XV — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval. Approved Code No. 347 — Supplement No. 19. Registry No. 1312-04. o UNIVERSITY OF FLORIDA 3 1262 08583 0502