s Approved Code No. 347 — Supplement No. 44 Registry No. 1399—56 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CEREAL MACHINERY INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON NOVEMBER 14, 1934 WE DO OUR PART UNIV. OP FL Lli. / * U.S. I 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 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. 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Approved Code No. 347 — Supplement No. 44 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CEREAL MACHINERY INDUSTRY As Approved on November 14, 1934 ORDER Approving Supplementary Code of Fair Competition for the Cereal 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 Cereal Machinery Sub- division of Machinery and Allied Products Industry, and hearing having been held thereon and the annexed report on said Supple- mental 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, the National Industrial Recovery Board, pursuant to author- ity vested in it by Executive Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise ; does hereby incorporate by reference said annexed report and does 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 does 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 Article VIII, Sections (a) and (b), 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, as orig- inally filed and/or revised price lists or revised terms and conditions of sale, be and they hereby are stayed pending further order; and (2) That the provisions of Article IX, Section 4, be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution of the products of the Subdivision to the National Industrial Recovery Board. 97356° 1325-55 34 (l) (3) That the provisions of Article IX, Section 5, be and they hereby are sta} T ed pending further order of the National Industrial Recovery Board in order that the Code Authority may submit a Section determining trade-in allowances. National Industry Recovery Board, By W. A. Harriman, Administrative Officer. Approval recommended : Barton W. Murray, Division Administrator. Washington, D. C, November 14, 1931^. REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Supplemental Code of Fair Competi- tion for the Cereal Machinery Subdivision of Machinery and Allied Products Industry, a public hearing on which was held in Washing- ton, D. C, on December 8, 1933, and reconvened on December 21, 1933. The hearings were conducted in full accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Cereal Machinery Subdivision, being truly representative of the manufacturers of the products defined m Article II of the Sup- plemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided for in the second paragraph of Article I in the Code of Fair Competitipn for the Machinery and Allied Products Industry, approved by you on the seventeenth day of March, 1934. The Subdivision includes the engineering, designing, manufactur- ing, and/or importing and assembling for sale of machinery (includ- ing spare, repair and replacement parts thereof) for reduction, cleaning, roasting, drying, cooling, separating, mixing and flaking as used in the manufacture and processing of cereals, seeds and nuts and/or their by-products and includes supplies and/or equipment directly incident thereto and also includes grinding and corrugat- ing of mill rolls (excluding machinery and/or equipment for ex- tracting vegetable oils, hammer mills, machinery as sold for use on farms, machinery and/or equipment or parts therefor having a general application and use for purposes other than the uses herein- above enumerated) and includes all persons so engaged. ECONOMIC EFFECT The Cereal Machinery Association has submitted in its code appli- cation data showing the estimated values of aggregate invested capital, production capacity, and annual sales of machinery and parts thereof used in the handling, storage, and processing of cereals, seeds, and nuts for the years 1928 to 1933, inclusive. This associa- tion claims to represent 80 per cent of the entire industry measured by dollar volume of business in 1932. Data pertaining to employment, average hours of labor, and aver- age earnings have been summarized from 30 National Recovery Administration questionnaire returns. Annual sales of the products of this Subdivision declined from $9,700,000 in 1929 to $3,290,000 in 1932, or 66.1 per cent. The Sub- division has estimated the value of sales for 1933 at $2,760,000 which (3) indicates a further decline of 16.1 per cent as compared with the previous period. Invested capital has declined 13.7 per cent since 1929, while estimated production capacity has increased 2.7 per cent. The trade association in its code application has estimated that this Subdivision employed approximately 2,070 employees in 1929. A tabulation of questionnaire returns from 36 establishments of the Subdivision shows that in 1929, 81.8 per cent of the total number of employees were factory workers. On the basis of this 81.8 per cent, 377 office workers have been segregated from the 1929 figure, leaving 1,693 factory workers. No figures are available on the full-time hours per week for the entire Subdivision. A summarized tabulation of National Recovery Administration questionnaires returned by the Subdivision shows that in June, 1929, the average working time ranged from 8 to 9 hours per da}^ and in June, 1933, and October, 1933, 7 to 8 hours per day. The effect of the 40-hour provision with production at more normal levels may be estimated on a basis of total man-hours per week in 1931 divided by the number of hours prescribed in the code. After 1929 man-hours declined steadily from 86,000 to a minimum of 30,430 in 1932, or approximately 65 per cent. Man-hours as of October 15. 1933, increased to 43,940, or 44 per cent over the 1932 level. If it is assumed that the 46,990 man-hours for 1931 are representa- tive of the volume of production for that year, and a reasonable measure of man-hour requirements in a more normal period, the adoption of the 40-hour week would require a force of approximately 1,175 workers, or 69 per cent of the 1929 working level. The probability that all factory workers in the Subdivision will be working to the limit of the maximum 40-hour provision is remote. Consequently the average work week is likely to be shorter, say 36 assumed effective hours, and employment correspondingly greater; viz., 1,305 workers will be required to produce the 1931 volume. The minimum wage provisions proposed for the Subdivisions which are operating under the Code of the Machinery and Allied Products Industry are based on a flat minimum hourly rate of 32 cents per hour for the South and the following city population differentials for all other sections of the United States : Over r>0,000 population 40 cents per hour Over 10,000 to 50,000 population 38 cents per hour 10,000 population and under 36 cents per hour In addition to the minimum wage rates shown above, the Code pro- vides 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 employees 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 be not less than 32 cents per hour. Total estimated weekly payrolls for the Subdivision have been com- puted by multiplying the average weekly wage shown for workers in the sample covering 36 establishments of the Subdivision by the es* i mated number of factory workers. The estimated weekly pavroll of $41,766 for this Subdivision in 1929 declined to a minimum of $10,615 in the first quarter of 1933, or 75 per cent. Payrolls amounting to $20,322 for the third quarter of 1933 indicate that payrolls for the Subdivision have increased about 91 per cent since the first quarter of 1933. According to a summary of questionnaire returns from 36 estab- lishments of the Subdivision, average weekly earnings declined from $24.67 in 1929 to a minimum of $13.54 in the first quarter of 1933, or 45 per cent. Weekly wages corrected for the cost of living (National Recovery Administration index) declined from $24.67 to a minimum of $19.48 in the first quarter of 1933. In the third quarter of 1933 these " real " wages had increased to $24.33. Number of Factory Workers Receiving Minimum Wages Proposed for South or Cities Ranging from Proposed Minimum Hourly Wage' Workers Receiving Less than tho Minimum Re- gardless of Loca- tion Per- cent Approxi- mate Num ber 50,000 population and over 10,000—50,000 population.. Under 10,000 population... Southern minimum 40 cents 38 cents 36 cents 32 cents 40.8 35.3 29.9 18.6 361 312 265 165 Minimum hourly earnings of factory wage earners have been re- ported in questionnaire returns from 36 establishments of the Sub- division for June 15, 1929, June 15, 1933, and October 15, 1933. The lowest minimum wage reported for each of the three periods by any of these establishments ranged between 15 cents and 20 cents per hour. Based on the percentage of number of wage earners receiving less than the designated rates, as shown above, and the fact that the minimum wage paid as of October 15, 1933, ranged betw T een 15 and 20 cents per hour, the adoption of the proposed minimum hourly rates is expected to cause an increase in the payrolls of this Sub- division based on the distribution as of June 15, 1933. The esti- mated increase will probably not exceed about 8.4 per cent, assuming only upward adjustment in the brackets below the 40-cent minimum. RESUME OF SUPPLEMENTAL CODE Article I states the purposes 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 National Industrial Recovery Code of 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, VIII, and IX of the Code of Fair Competition for the Machinery and Allied Products Industry. 6 Article V provides for the establishment of a Code Authority and defines its powers and duties. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides that no products of the Subdivision shall be sold or offered for sale below a reasonable cost when the Code Authority determines that an emergenc}* - 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 states that no provision of this Supplemental Code relating to pricing and marketing shall apply to Export sales as defined by the term " Export " in this Article. Article XI provides that this Supplemental Code and all the pro- visions thereof are expressly made subject to the right of the Presi- dent, 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 modifications may be submitted by the Code Authority to the Administrator for approval. Article XII. No provision of this Supplemental Code shall be so applied as to permit monopolies, or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Article XIII states the effective date of this Supplemental Code. FINDINGS The Assistant Deputy Administrator in his final report to us on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter : We find that : (a) Said Supplemental Code is well designed to promote the j^olicies 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 organi- zation of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest {possible utilization of the present productive capacity of industries, )y 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 us 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 permit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplemental Code. For these reasons, therefore, we have approved this Supplemental Code, provided that certain provisions relating to price publication in Article VIII, the provisions of Article IX, Section 4, and the provisions of Article IX, Section 5, are stayed as stated in the Order. For the National Industrial Recovery Board : W. A. Harrimax, Administrative Officer. November 14, 1934. 07r.56° 1325-55- SUPPLEMENTARY CODE OF FAIE COMPETITION FOR THE CEREAL 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 Cereal Machinery Subdivi- sion 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 (a) "Applicant " means the Cereal Machinery Association, a trade organization, all members of which are engaged in the manufacture for sale of the products of the Cereal Machinery Subdivision of the Machinery and Allied Products Industry. (b) " Industry " means the Machinery and Allied Products In- dustry, as denned in its Code of Fair Competition as approved by the President on March IT, 1934, and as such definition may from time to time be amended. (c) " Subdivision " means the Cereal Machinery Subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph five (5) Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows : (d) " Cereal Machinery Subdivision " as used herein, is defined to mean the engineering, designing, manufacturing, and/or importing and assembling for sale of machinery (including spare, repair and replacement parts thereof) for reduction, cleaning, roasting, drying, cooling, separating, mixing and flaking as used in the manufacture and processing of cereals, seeds and nuts and/or their by-products and includes supplies and/or equipment directly incident thereto and also includes grinding and corrugating of mill rolls (excluding ma- chinery and/or equipment for extracting vegetable oils, hammer mills, machinery as sold for use on farms, machinery and/or equip- ment or parts therefor having a general application and use for purposes other than the uses hereinabove enumerated) and includes all persons so engaged. (e) "Code" means the Code of Fair Competition for the Ma- chinery and Allied Products Industry, as approved by the President, March 17, 1934, and as from time to time amended. (f ) " Person " means a natural person, a partnership, a corpora- tion, an association, a trust, a trustee, a trustee in bankruptcy, a receiver or other entity. (8) (g) "Employer" means any person engaged in this Subdivision either on his own behalf or as an employer of labor. (h) " Employee " means any one who is employed in the Subdivi- sion by any such Employer. (i) " The Act " means Title I of the National Industrial Recovery Act. (j) "The President'''' means the President of the United States. (k) " Board " means the National Industrial Recovery Board or its successor in office. (1) "Basic Code Authority" means the Code Authority for the Machinery and Allied Products Industry as constituted by the Code. (m) " Code Authority " means the Code Authority constituted for this Subdivision as provided by the Code and by this Supplemental Code. (n) " Group Code Authority " means the Code Authority for any group or product classification within this Subdivision. (o) " 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 of Other Provisions or Code The following Articles of the Code, viz : Article II, " Definitions "; Article VI, "Administration ", to the extent that they shall be ap- plicable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code ; Article VIII, " Modifications and Termination " ; and Article IX, " Withdrawal " ; are hereby made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Article V — Administration (a) A Code Authority for this Subdivision is hereby constituted to administer, supervise and facilitate the enforcement of the Code and of this Supplemental Code in the manner and to the extent pro- vided in the Code and in this Supplemental Code. (b) During the period not to exceed sixty (60) days following the effective date of this Supplemental Code, the code committee of the Applicant shall constitute a temporary Code Authority. The Board, in its discretion, may appoint one additional member (with- out vote and without expense to this Subdivision). (c) This Subdivision, having held an election for permanent Code Authority under the provisions of the Code of Fair Competition for the Machinery and Allied Products Industry, the Code Authority so elected shall constitute the first permanent Code Authority for this Subdivision if this method of election meets with the approval of the Board. If this method of election does not meet with the approval of the Board then the provisions hereinafter provided shall apply 10 for the election of the first permanent Code Authority. For elections after the first, the provisions of this Code for election of a permanent Code Authority shall apply. (d) The Applicant shall, by at least twenty (20) days written notice mailed to all employers whose name Applicant has learned after reasonably diligent search, call a meeting of employers to be held within sixty (Co) days after the effective date for the purpose of adopting procedural rules and regulations for the election, organi- zation and operation of the permanent Code Authority and electing a permanent Code Authority which shall consist of not less than five (5) nor more than nine (9) members. The Board may, in its discre- tion, appoint one additional member (without vote and without ex- pense to the Industry). The permanent Code Authority so elected and appointed shall supersede the temporary Code Authority. (e) 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 obli- gations out of funds which may be raised as hereinafter pro- vided and which shall be held in trust for the purpose of the Supplemental Code ; (2) To submit to the Board for its approval, subject to such notice and opportunity to be heard as it may deem necessary (1) an itemized budget of its estimated expenses for the fore- going purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by employers of the Subdivision ; (3) After such budget and basis of contribution have been approved by the Board, to determine and obtain equitable contribution as above set forth by all employers of the Subdi- vision, and to that end, if necessary, to institute legal proceed- ings therefor in its own name. (f ) Each employer of the Subdivision shall pay 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 Board. Only employers of the Subdivision complying with the Supplemental 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 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. (g) The Code Authority shall neither incur nor pay any obligation substantially in excess of the amount thereof as estimated in its ap- proved budget, and shall in no event exceed the total amount con- tained in the approved budget, except upon approval of the Board; and no subsequent budget shall contain any deficiency item for ex- penditures in excess of prior budget estimates except those which the Board shall have so approved. (h) Action by employers in any Subdivision meeting for the elec- tion of Code Authority shall be by vote of the employers entitled to 11 vote as provided in Sections (e), (f), (g) of this Article V, and who are present in person or by proxy, or who have voted by mail ballot, each such employer to have one vote only. Action by employers in any Subdivision meeting for the adoption of procedural rules, revi- sions or additions to the Supplemental Code, or the transaction of other business of the Subdivision under this Supplemental Code, shall be by vote of the employers in the Subdivision who are entitled to vote thereat as provided in Sections (e), (f), (g) Article V of the Supplemental Code and are present in person or by proxy, or who have voted by mail ballot, duly executed and filed with Code Au- thority; 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 the employers other than the meeting held to vote for the election of the permanent Code Authority shall be determined by Code Authority, in accordance with Section (d) Article VI of the Code. (i) 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. (j) 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 may to the ex- tent permitted by the Act, cause such investigation 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 investiga- tion or audit to Code Authority for action. (k) 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 Sup- plemental Code and under such others to the extent that such fair trade practices may be proposed to the Board as amendments to this Supplemental Code and such other Codes. Article VI — Accounting and Costing The Code Authority may 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 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 12 cost of the products of this Subdivision, such determination to be subject to such notice and hearing as the Board may require. The Board 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 oifer to sell any product of the Subdivision for which the lowest reasonable cost has been determined at such prices or upon such terms or con- ditions of sale that the buyer will pay less therefore than the lowest reasonable cost of such products. 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. Section 2. The foregoing Section (1) shall not apply to (a) dropped lines, or (b) seconds, or (c) inventories which must be con- verted 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 and terms and conditions of sale. Notice of such disposal shall be sent immediately to all employers manu- facturing products of equivalent design, character, quality or speci- fications, who may sell such products at prices and on terms and conditions as favorable 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 com- petition which justifies such action. Article VIII 1 — Price Lists (a) If and when Code Authority determines that in any 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 em- ployer engaged in the manufacture and/or importing of such prod- uct shall, within ten (10) days after notice of such determination, file with Code Authority- a net price list, or a price list with dis- count 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 Code Authority shall immediately publish and send copies thereof to all known employers who are cooperating under this Supplemental Code as described in Article V (e), (f), (g) and engaged in the manufacture and/or importing of such specified product. Revised price lists and/or discount sheets and/or terms of sale and payment may be filed from time to time thereafter with the 1 Soe paragraph 2 (1) of order approving this Code. 13 Code Authority by any such employer, to become operative upon the date specified therein, but such revised price lists and/or dis- count sheets and/or terms of sale and payment shall be filed with the Code Authority ten (10) days in advance of the operative date. Copies thereof, with notice of the operative date specified, shall be immediately published and sent to all employers cooperating under this Supplemental Code as described in Article V (e), (f), (g), any of whom may file, if he so desires, revisions of his price lists and/or discount sheets and/or terms of sale and payment, which shall become effective upon the date when the revised price list and/or discount sheets and/or terms of sale and payment first filed shall go into effect. (b) If and when Code Authority shall determine that in any group of the Subdivision not now selling its product on the basis of price lists, with or without discount sheets, and terms of sale and payment, the distriution or marketing conditions in the group are the same as, or similar to, the distribution or marketing con- ditions in a group where the use of price lists, with or without dis- count sheets and terms of sale and payment is well recognized, and that a system of selling on net price lists or price lists with discount sheets and terms of sale and payment for such specified product should be put into effect in such group, then each employer in such group shall within twenty (20) days after notice of such determina- tion, file with Code Authority net price lists or price lists with discount sheets, and terms of sale and payment, showing his 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 hereinbefore provided. Provided that Code Authority shall make no determination to place any prod- uct of the Subdivision (not now on a price list basis) on a price list basis, as provided in this Section unless affirmative consent to such determination is given by a two-thirds (%) vote of employers who are at that time cooperating under this Supplemental Code as described in Article V (e), (f), (g), and are engaged in manu- facturing and/or importing of such product. The eligibility re- quirements, method, and effect of such voting shall be the same as is provided by Article V. (c) If and when Code Authority, with the affirmative consent given by a two-thirds (%) vote of the employers who are at that time cooperating under the Supplemental Code as described in Ar- ticle V, shall determine that it is undesirable to continue the filing of net price lists and/or price lists with discount sheets and/or terms of sale and pajanent on any product 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 determine that such filing be made. (d) 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 different price, or on more favorable terms of sale and payment, than those provided in his own current net price lists, or price lists and discount sheets, and terms of sale and payment except as provided in Article VII. 14 Article IX — Trade Practices Each of the following acts and 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, and is prohibited, viz : 1. No employer shall secretly offer or make any payment or allow- ance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in the form of money or otherwise, nor shall an employer of the Subdivision secretly offer or extend to any customer any special service or privilege not extended to all cus- tomers of the same class, for the purpose of influencing a sale. 2. No employer shall give, permit to be given or offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in rela- tion 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 con- strued 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. 3. 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 mis- represent 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. 4. No employer shall evade the provisions of this Code by selling to or through any distributor who does not agree to comply with Articles VIII and IX of this Code. 2 5. No employer shall take used equipment in trade on the pur- chase price of new equipment nor make allowances or grant credit, directly or indirectly, for used equipment ; provided, however, that in any subdivision for which there may be a Sub-Code Authority approved or appointed by the Code Authority in accordance with the provisions of Section (i) Article V hereof, the employers who are members of such subdivision may take such used machinery or equipment in trade on the purchase price of new machinery or equipment in accordance with a standard method of appraisal approved by such group Code Authority. 8 6. A uniform standard of practice covering " sales of products when including installations " may be established by any group in the industry, provided that such standard of practice shall receive the affirmative vote of at least two-thirds of the employers in such group and shall be approved by the Code Authority and the Board. When such a standard of practice shall have been so established by a group and so approved, no employer in that group shall contract with purchasers for the furnishing and installing of equipment de- signed, manufactured, assembled or offered for sale by such em- * See paragraphs 2 (2) of order approving this Code. •See paragraph 2 (3) of order approving this Code. 15 ployers, except in accordance with such standards, provided, how- ever, that in connection with contracts with State or Federal Agen- cies such forms may be used as the State or Federal Agencies may determine. 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 or to sales of any product destined ultimately for export. The term " export " shall include all shipments to all places without the sev- eral States of the United States and the District of Columbia; pro- vided, however, that no shipment to any territory or possession of the United States shall be considered an export when any employer is engaged in the Subdivision in such territory or possession. Article XI — Modifications (a) This Supplemental Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act. (b) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority, and authorized by the affirmative vote of two-thirds (%) of the 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 XII — Monopolies No provision of this Supplemental Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, op- press, or discriminate against small enterprises. Article XIII — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh (11th) day after its approval by the President. Approved Code No. 347 — Supplement No. 44. Registry No. 1399-56. o IINIVERMTY OF FLORIDA ,11111:1111111111 3 1262 08852 5661