V Approved Code No. 347 — Supplement No. 30 Registry No. 1399—69 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MULTIPLE V-BELT DRIVE INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JULY 13, 1934 WE DO OUR PART UM1V. O .... 07 .... U.S. DEP UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, AVashington, D.C. -.-----.. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1S01 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. Detroit, Mich. : SOI First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla. : Chamber of Commerce Building. Kansas City, Mo. : 1028 Baltimore Avenue. Los Angeles, Calif. : 1183 South Broadway. Louisville, Ky. : 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La. : Room 225-A, Customhouse. New York, N.Y. : 734 Customhouse. Norfolk, Va. : 406 East Plume Street. Philadelphia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building, Portland, Oreg. : 215 New Post Office Building. St. Louis. Mo.: 506 Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle, Yv 7 ash. : 809 Federal Office Building. Approved Code No. 347 — Supplement No. 30 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MULTIPLE V-BELT DRIVE INDUSTRY As Approved on July 13, 1934 ORDER Supplementary Code of Fair Competition for the Multiple V-Belt Drive 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 Multiple V-Belt Drive 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 : 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 terms and conditions of sale, be and they are hereby stayed pending my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Barton W. Murray. Division Admin istrator. Washington, D.C. July 13, 193 If. 73628° S20-C1 ?A (}) REPORT TO THE PRESIDENT The President, The White Bouse. Sir: This is a report on the Supplemental Code of Fair Compe- tition for the Multiple V-Belt Drive Subdivision of Machinery and Allied Products Industry, a public hearing on which was held in Washington, D.C., on May 10, 1934. This public hearing was con- ducted in full accordance with the provisions of Title I of the National Industrial Recovery Act and all persons were given full opportunity to be heard. GENERAL STATEMENT The Multiple V-Belt Drive Subdivision, being truly representative of the manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Supple- mental Code of Fair Competition as provided in Article I in the Code of Fair Competition for the Machinery and Allied Products Industry, approved by you on March 17, 1934. The Multiple V-Belt Drive Subdivision means the manufacture for sale of Multiple V-Belt Drives, and parts thereof, and includes all those engaged in such manufacture for sale. This includes belt manufacturers when merchandising complete drives or sheaves, but does not include the manufacturing of belts or merchandising only of the belt element of the Drive. ECONOMIC EFFECT This Subdivision has been very severely affected by the depres- sion. This is evidenced bv the steady decline in annual sales, the total volume having declined from $3,281,000 in 1929 to $1,045,000 in 1932 or 68.2 percent and increased thereafter to $1,132,000 in 1933, or 8.3 percent. Total sales for 1933 were approximately Go percent below the 1929 level. In 1929 this Subdivision employed approximately 346 persons, in- cluding office employees. After 1929 employment declined to 251 persons in 1932, or 27.5 percent. The 1933 employment was approxi- mately 20 percent below the 1929 level. No data are available on average hours of labor or average wage rates for the Subdivision. The effect of the wage and hour provi- sions of the Supplemental Code cannot, therefore, be determined. The wage provisions for the Subdivision, which is operating under the Code of the Machinery and Allied Products Industry, 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 (2) 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 imme- diate vicinity of a city of more than 10,000 population, 36 cents per hour, except that employees engaged in plant operations in all lo- calities in the states of Virginia, North Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, 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, the} T shall receive the same pay. However, no female em- ployee shall be paid less than 87%% of the proper rate for the lo- cality in which employed. Office boys and girls and apprentices shall be paid not less than 80% of the minimum wage. Employees other than those engaged in plant operations shall re- ceive not less than $15.00 per week. This Supplemental Code provides that no person under sixteen 3 7 ears of age shall be employed in this Subdivision. RESUME OF SUPPLEMENTAL CODE Article I states the purpose of the Supplemental Code. 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 on the seventeenth day of March, 1934, and as from time to time amended. Article IV provides for the adoption of Articles II, VI, VIII, and IX of the Code of Fair Competition for the Machinery and Allied Products Industry in accordance with the conditions of this Article governing their adoption. Article V provides for the establishment of the Code Authority and defines its power and duties. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides that no products shall be sold or exchanged below a reasonable cost when the Code Authority determines that an emergency exists. Article VIII provides for methods of setting up, 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 establishes that no provision of this Supplemental Code relating to pricing and marketing shall apply to direct export sales or to any product destined ultimately for export. Article XL This Supplemental Code and all the provisions thereof are expressly made subject to the right of the President in accord- ance with subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regula- tion issued under said Act. Provision is also made that modifica- tions may be submitted by the Code Authority. Article XII provides means for withdrawal of this Subdivision from the Basic Code and its continuance as an autonomous Code. 4 Article XIII establishes that no provision of this Supplemental Code shall be so applied as to permit monopolies and monopolistic practices or to eliminate, oppress, or discriminate against small en- terprises. 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 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; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not per- mit 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. Respectfully, Hugh S. Johnson, Administrator. Washington, D.C., July 13, I934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MULTIPLE V-BELT DRIVE 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 Multiple V-Belt Drive Subdivision of the Ma- chinery and Allied Products Industry, and, together with the Code of Fair Competition for the Machinery and Allied Products Indus- try, shall be the standard of Fair Competition for this Subdivision, and shall be binding on each employer therein. Article II — Definitions "Applicant : ' means the Multiple V-Belt Drive Association, a trade organization, all members of which are engaged in the manufacture and sale of the products of the Multiple V-Belt Drive Subdivision of the Machinery and Allied Products Industry. " Industry " means the Machinery and Allied Products Industry, as defined in its Code of Fair Competition as approved by the Presi- dent, and as such definition may from time to time be amended. " Subdivision " means the Multiple V-Belt Drive Subdivision of the Machinery and Allied Products Industry, defined as follows : " Multiple V-Belt Drive Subdivision " means the manufacture for sale of Multiple V-Belt Drives, and parts thereof, and includes all those engaged in such manufacture for sale. This includes belt manufacturers when merchandising complete drives or sheaves, but does not include the manufacturing of belts or merchandising only of the belt element of the Drive. " 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 of the Industry, either on his own behalf or as an employer of labor. " Employee " means any one who is employed in this 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. '■''Administrator " means the Administrator for Industrial Re- covery. (5) " 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, constituted under the Authority of Article V of this Supplemental Code. " Method of Pricing " means net price lists and terms of sale and payment, or price lists with discount sheets and terms of sale and payment. " Publish " means to make available to all interested parties. 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 of 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 hereafter be administered as an autonomous Code ; and Article VIII, " Modifi- cations and Termination ", are hereby made a part of this Supple- mental Code, with the same effect as if they were written into this Supplemental Code. Article V — Administration During the period not to exceed sixty days following the effective date of this Supplemental Code, the code committee of the Applicant shall constitute a temporary Code Authority. This committee shall consist of not less than 3' and not more than 8 members, and the Administrator, in his discretion, may appoint one additional member (without vote and without expense to this Subdivision). (a) To permit representation of employers who are not members of Applicant, the Applicant shall, within sixty days after this Sup- plemental Code becomes effective, set up a permanent Code Author- ity to succeed the temporary Code Authority to administer and super- vise and to facilitate the enforcement of this Supplemental Code. Such permanent Code Authority shall be elected at a meeting called for this purpose, to which all known employers in this Subdivision shall be invited by letter sent by registered mail, with the right to vote either in person or by proxy. This permanent Code Authority shall consist of not less than 3 and not more than 7 members, and, in addition thereto, the representative of the Administrator as re- ferred to in the paragraph above. Of the elective members of Per- manent Code Authority, one member may be chosen by the em- ployers (if any) who are not members of the Applicant, provided such representation shall be desired by such employers. In the elec- tion of the remaining members of Permanent Code Authority, each member of the Applicant shall have one vote, and a majority vote of the members of the Applicant shall elect. Members of the Per- manent Code Authority so elected shall hold office for terms pro- vided for in the Permanent Code Authority Constitution and By- Laws. Any employer in this Subdivision shall be entitled to vote at the election of, and share in the benefits of, the Code Authority, and participate in any endeavors of the Code Authority in the prepara- tion of any revisions of, or additions or supplements to, this Supple- mental Code, by paying- his proper pro rata share of the cost of administering it, as determined by the Code Authority. Assessments for defraying the expense of administering the Code, as determined by the Code Authority, shall be pro rated among employers at such times and in such amounts as may be determined by majority vote of the Employers in the Subdivision entitled to vote; such assessments to be pro rated upon the basis of gross sales of the products of the Subdivision, f.o.b. cars at point of manufac- ture or warehouse, for the preceding calendar year. For the purpose of computing such assessments, each employer shall submit, upon request of the Code Authority, an accurate state- ment covering the sales made during the above stated period. The Code Authority shall have no activities not related to the provisions of this Supplemental Code or the Code. Any employer shall be eligible for membership in the Applicant Association. 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. (b) Action by employers concerning and involving activities lead- ing to and creating expense shall be by vote of the employers en- titled to vote, as hereinbefore provided in this Article, who are present in person or by proxy duly executed and filed with the Code Authority, cast concurrently in each of the two following methods: 1. By one vote of each employer. 2. By vote of employers weighted on a basis of one vote for each $50,000 of the average annual sales of the products of this Sub- division, billed f.o.b. plant or warehouse, by each employer, for the preceding two calendar 3 r ears as reported to the Code Authority to be computed at the beginning of each calendar year and to apply throughout the then current year. Each employer shall be entitled to at least one such vote. Such action as specified in above paragraph taken at any meeting of employers .shall be by majority vote cast and computed in each of the two methods hereinabove provided. (c) Action by employers concerning and involving activities other than those leading to and creating expense and other than the elec- tion of the permanent Code Authority shall be by a majority vote 8 of the employers entitled to vote ; each such employer shall have one vote. (d) For the purpose of Administering and facilitating the en- forcement of the provisions of this Supplemental Code, Code Au- thority, by its duly authorized representatives (who shall not be an employer or in the employ of any employer affected by this Supple- mental Code), shall have access to any and all statistics, data and information, filed in accordance with the provisions of the Code and this Supplemental Code. All individual statistics, data and information of individual employers, as filed in accordance with the provisions of the Code and this Supplemental Code, shall be kept confidential, except with the consent of such employer pertaining to his own statistics, and providing that nothing herein shall pre- vent publication of general summaries of such statistics of this Subdivision. (e) For Administrative purposes, employers may be grouped by Code Authority to bring into working association employers having common interests and problems that are not common to all em- ployers in this Subdivision. Each such group shall designate from among its members a Group Code Authority, and may adopt such rules for the conduct of the business of the group as are not in- consistent with the provisions of this Supplemental Code and the Code; provided, however, that provisions of this Article V shall control the making of all examinations or audits and the use to be made of information so obtained with respect to any employer. (f) Except as otherwise provided in this Supplemental Code, the Code Authority or a Group Code Authority shall have power to hear all matters pertaining to the provisions of this Supplemental Code which may be submitted to it by any employer in its Group, having relation to the employers in said Group, or any of them, and to that end, to the extent permitted by the Act, may investigate and ascer- tain the facts through such examination or audit as such Group Code Authority may deem necessary. All matters pertaining to a par- ticular group shall be referred in the first instance to the Group Code Authority for that Group, if any has been established. Any decision of the Group Code Authority shall be final unless appeal is taken to the Code Authority or such decision involves mat- ters requiring to be reported to the Code Authority, in which case pertinent information, papers and data in the possession of the Group Code Authority shall be turned over by it to the Code Authority, and the Code Authority shall pass on the merits of the case and make final decision or report thereon to the Basic Code Authority or the Administrator. (g) The Code Authority or a Group Code Authority may act, within its powers, on the affirmative vote of a majority of its elected members; provided that any proposal receiving less than a majority vote shall be submitted upon the request of any member of the Code Authority or Group Code Authority having jurisdiction to a vote of all employers entitled to vote under this Supplemental Code or of all the employers entitled to vote comprising the Group affected respectively, and the Code Authority or Group Code Authority having jurisdiction shall act as determined by the majority of the number of votes so cast. (h) If any employer in this Subdivision is also an employer in any other Subdivision of the Industry, or in any other industry, the provisions of this Supplemental Code, and the jurisdiction of the Code Authority hereunder, shall apply to and affect only that part of his business and product which is included in this Subdivision. (i) An appeal from any action taken, or any rule or regulation established affecting the right of any employer or employee in this Subdivision, may be taken to the Basic Code Authority and there- after to the Administrator. (j) Nothing contained in this Supplemental Code shall consti- tute the members of the Code Authority or any Group Code Author- ity as partners for any purpose. Nor shall any member of the Code Authority or of any Group Code Authority be or become liable in any manner to anj'one for any act of any other member, officer, agent or employee of the Code Authority or any Group Code Authority exercising reasonable diligence in the conduct of his duties here- under, nor be or become liable to anyone for any action or omission to act under this Supplemental Code and the Code, except for his own willful misfeasance or non-feasance. (k) The Code Authority may appoint a trade practice committee 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 relationships be- tween production and distribution employers under this Code and under such others to the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other codes. 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 of the Subdivision. After such system and methods have been formulated, full details concerning them shall be made available to all employers. Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such methods. Article VII — Selling Below Reasonable Cost 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 main- tenance of the provisions of this Supplemental Cole, the Code Au- thority may cause to be determined the lowest reasonable cost of the product or products of this Subdivision, such determination to be subjeet to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove or modify the deter- mination. 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 or products of the Subdivision for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than the lowest reasonable cost of such products. 10 When it appears that conditions have changed, the Code Author- ity, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. For the purpose of gathering statistical data for the determination or revision of a lowest reasonable cost, the Administrator may re- quire each employer to furnish such information concerning the cost of manufacturing and selling as the Administrator shall deem neces- sary or proper for such purpose. Article VIII — Methods of Pricing and Terms or Payment (a) If and when the Code Authority determines that in any branch or group of the Subdivision it has been the generally recognized prac- tice of at least two-thirds of such branch or group of the Subdivision to sell a specified product on the basis of net price lists or price lists with discount sheets and fixed terms of sale and payment, each em- ployer shall, within ten days after notice of such determination, file with the proper Group Code Authority (or with Code Authority if there is no Group Code Authority having jurisdiction) net price lists or price lists with discount sheets and terms of sale and payment, individually prepared by him, showing his current method of pric- ing, and the Group Code Authority or Code Authority shall imme- diately publish and send copies thereof to the employers of this Sub- division co-operating under this Code, as described in Article V (a), and who manufacture like products. Revisions of the method of pricing and terms of sale and payment may be filed in like manner, from time to time thereafter, with the proper Group Code Authority or Code Authority by any manufacturer of such products, each such revision to become operative upon the date specified therein, but such revised method of pricing shall be filed with the proper Group Code Authority or Code Authority 10 days in advance of operative date. Copies thereof, with notice of the operative date specified, shall immediately be published and sent to all manufacturers of such product co-operating under this Supplemental Code, as described in Article V (a), any of whom ma}' file, if he so desires, revisions of his methods of pricing, which shall become effective upon the date when the revised method of pricing first filed shall go into effect. 1 (b) If and when a Group Code Authority or Code Authority shall determine that in any branch or group of the Subdivision not now selling its products on the basis of price lists, with or without dis- count sheets, with fixed 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, is well recognized, and that a S3'stem of selling on net price lists, or price lists with discount sheets and fixed terms of sale and payment, should be put into effect in such branch or group, then each manufacturer of the product or products of such branch or group shall, within twenty days after notice of such determination, file with Group Code Authority or Code Author- ity net price lists or price lists with discount sheets with fixed terms of sale and payment, showing his method of pricing, and such 1 See paragraph 2 of order approving; this Code. 11 method of pricing may be thereafter revised in the manner herein- above provided. Such methods of pricing and revisions thereof shall be "published and sent" as described in Article VIII (a). Provided that Group Code Authority or 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 para- graph (b) of Article VIII, unless two-thirds of the employers co- operating under this Supplemental Code as described in Article V (a), who are at that time engaged in manufacturing such product, shall affirmatively consent that such determination be made. (c) No employer shall sell directl}' or indirectly, by any means whatsoever, any product of this Subdivision at a price or at discounts or on terms of sale and payment different from those provided in his own current method of pricing and terms of sale and payment, as covered by the provisions of this Article VIII and proceedings there- under; provided, however, that any employer upon notice to the Code Authority may adopt as his own price as set forth in such notice, a lower price filed by another employer of this Subdivision. Such adopted price or withdrawal or upward revision of same shall be " published and sent " as described in Article VIII (a) for revi- sions. Such adoption shall become automatically void upon the withdrawal or revision upward of the price adopted. (d) 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 prod- uct in respect of which such filing has theretofore 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 deter- mine that such filing be made. Article IX — Trade Practices Each of the following acts or practices is deemed to be inimical to the best interests of the Subdivision and of the public, and each is, therefore, hereby declared to be, and to constitute, an unfair method of competition, viz : 1. Inaccurate Advertising. — No employer 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 with- out limitation its use, trade-mark, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or prep- aration) or credit terms, values, policies, services, or the nature or form of the business conducted. 2. False Billing. — No employer shall knowingly withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 3. Inaccurate Labelling. — No emplo} r er shall brand or mark or pack any goods in any manner which is intended to or does deceive or mislead purchasers with respect to the brand, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation of such goods. 4. Defamation. — No employer shall defame a competitor by falsely imputing to him dishonorable conduct, inability to perform con- 12 tracts, questionable credit standing, or by other false representation, or by falsely disparaging the grade or quality of his goods. 5. Destructive Price Cutting. — No employer shall indulge in de- structive price cutting. 6. Threats of Law Suits. — No employer shall publish or circulate unjustified or unwarranted throats of legal proceedings which tend to or have the effect or harassing competitors or intimidating their customers. 7. Secret Rebates. — No emploj'er 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 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. 8. Bribing Employees. — No employer shall give, permit to be given, or oiler 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 principal of such agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. 9. Inducing Breach of Existing Contracts. — No employer shall wilfully induce or attempt to induce the breach of existing com- mercial contracts between competitors and their customers by any false or deceptive means, or interfere with or obstruct the perform- ance of any such contractual duties or services by any such means, with the purpose and effect of hampering, injuring or embarrassing competitors in their business. 10. Coercion.— No employer shall require that the purchase or lease of any goods be a prerequisite to the purchase or lease of any other goods. 11. Installation Costs. — No employer shall contract to install any equipment covered by this Subdivision without charging for the cost thereof. This provision shall not prevent any employer furnishing supervisory or millwright service, provided such service is charged for at the prevailing rates for such class of work, plus living and traveling expenses, with no guarantee of total maximum charge. The provisions of this paragraph shall not apply to Multiple V- Belt Drives sold in connection with, or as a part of, a contract for driving and/or driven machinery, the terms of sale of which call for erection or installation. 12. Contract Changes. — No employer shall change a contract of purchase and sale after it has been executed with a purchaser, by modifying or extending the warranty given in such sales contract as to defects in the product covered or the liability of the employer thereunder. 13. Trade Secrets. — No employer shall procure, otherwise than with the consent of another employer, an}' information concerning the business of such employer which is properly regarded by such employer as a trade secret or confidential within his or its organiza- tion. 13 14. Discounts. — No employer shall sell on the basis of a dollar volume discount. This shall not prohibit quoting of quantity dis- counts on published price list. 15. Consignment. — Xo employer shall consign any product to any one or any class of trade, except in trading areas where existing com- peting stocks are now maintained by an employer; provided how- ever, that the following practices are permitted: (a) The transfer of an existing consignment from one consignee to another consignee in the same trading area; (b) the conversion of a bona fide sale into a consignment for the purpose of protecting the seller when the pur- chaser is financially embarrassed; (c) the conducting of field tests or demonstrations of newly designed products or of a new applica- tion of a product by any employer, without compensation. 16. Guaranty. — Xo employer shall guaranty any product be}