Approved Code No. 84 — Supplement No. 33 Registry No. 1140—04 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FLEXIBLE METAL HOSE AND TUBING MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON MAY 24, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. ..-.-.-- Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta. Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. 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Approved Code No. 84 — Supplement No. 33 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FLEXIBLE METAL HOSE AND TUBING MANUFACTURING INDUSTRY As Approved on May 24, 1934 ORDER Approving Supplementary Code of Fair Competition for the Flexible Metal Hose and Tubing Manufacturing Industry a division of the fabricated metal products manufacturing and metal finishing and metal coating industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 1G, 1933, and in accordance with the provisions of Section 1 of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933. for ap- proval of a Supplementary Code of Fair Competition for the Flexi- ble Metal Hose and Tubing Manufacturing Industry, and hearing having been duly held thereon; and the annexed report on said Supplementary Code, containing findings with respect thereto, hav- ing been made and directed to the President : ^ NOW. THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson. Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933. and otherwise; do hereby incorporate by reference said annexed report and do find that said Supplementary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act: and do hereby order that said Supplementary Code of Fair Competition be and it is hereby approved: provided, however, that the provisions of Article VII, Section 1. insofar ns they prescribe a waiting period between the filing with the Code Authority (or such agency as may be designated in the Code) and the eifective 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 staved pending my further Order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glanct, Division Administrator. Washington, D.C., May £4, lU.i',. 62107° . r )44-13» 34 (1) REPORT TO THE PRESIDENT The President, The White Home. Sir : This is a report on the Supplementary Code of Fair Compe- tition for the Flexible Metal Hose and Tubing Manufacturing In- dustry, a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., January 23, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Flexible Metal Hose and Tubing Manufacturing Industry, being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of submitting a Supplementary Code of Fair Practice, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by you on the second day of November, 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Sup- plementary Code. Article III. This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of its Basic Code, as approved November 2, 1933, are the labor provisions of this Supplementary Code. Article IV establishes a Supplementary Code Authority consisting of six (6) members elected by the members of the Industry at a meeting called by the Supplementary Code Authority, of which one shall be a non-member of the Flexible Metal Hose and Tubing In- stitute, and gives the Administrator the authority to appoint one additional member without vote and provides machinery for obtain- ing statistics and the administration of the Supplementary Code. Article V sets forth the cost accounting procedure to be used by the Industry upon the approval of the Administrator. Article VI provides against selling products at less than cost to the seller. Article VII provides for the filing of price lists and discount sheets with the Supplementary Code Authority. Article VIII sets forth the unfair trade practices of this Supple- mentary Code which has been especially designed to offset unfair competition in this division of the Industry. (2) Article IX provides against monopolies and monopolistic practices. Article X contains the mandatory provisions contained in Section 10 (b) and also provides for the submission of proposed amendments to the Supplementary Code. Article XI recognizes that price increases be limited to actual additional increases in the seller's costs. Article XII states the effective date and duration of this Supple- mentary Code. FINDINGS The Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter: I find that : (a) Said Supplementary Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zation of industry for the purposes of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and 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 tem- porarily 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 Industry normally employs not more than 50,000 em- ployees; and is not classified by me as a major industry. (c) The Supplementary Code as approved complies in all respects with the pertinent provisions of said Title of said Act. including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplementary 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 Supplementary Code. For these reasons, therefore, I have approved this Supplementary Code. Respectfully, Hugh S. Johnson, Administrator. May 24, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FLEXIBLE METAL HOSE AND TUBING MANU- FACTURING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Flexible Metal Hose and Tubing Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manu- facturing and Metal Finishing and Metal Coating Industry, approved by the President of the United States on the second day of November, 1933, and the provisions of this Supplementary Code shall be the standard of fair competition for the Industry and shall bo binding upon every member thereof. Article II — Definitions Section 1. The term " Flexible Metal Hose and Tubing Manufac- turing Industry " means the manufacture for sale of Flexible Metal Hose or Flexible Metal Tubing and/or American Gas Association flexible gas (illuminating) tubing and/or gasoline and oil feed lines having a flexible metal tubing lining, together with couplings or con- nections commonly used with any of the above and/or couplings for cotton covered rubber-metal gasoline hose and the sale thereof by the manufacturer of such product as a finished article as distinguished from sale thereof as an incidental part of some other article or devise. Nothing in this section shall be construed to embrace flexible metal tubing lined, rubber covered and/or cotton jacketed hose of the type listed by the Underwriters Laboratories Inc. and ordinarily used for the conveying of gasoline, oils and solvents or for paint spraying. Section 2. The terms "Act ", " President " and "Administrator " used herein shall mean respectively Title I of the National Industrial Recovery Act, the President of the United States and the Adminis- trator for Industrial Recovery. Section 3. The term " member of the Industry " as used herein includes but without limitation any individual, partnership, asso- ciation, corporation or other form of enterprise engaged in the Indus- try either as an employer or on his or its own behalf. Section 4. The term " Basic Code " as used herein is defined to mean the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry as approved by the President of the United States on the second day of November, 1933. (4) Section 5. The term "employer" as used herein includes anyone by whom any such employee is compensated or employed. Section 6. The term "employee" as use,d herein includes anyone engaged in the Industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation. Section 7. The term "•Supplementary Code Authority" as used herein means the agency which is to administer this Supplementary Code as hereinafter provided. Section 8. The term "Institute" is defined to mean the Flexible Metal Hose and Tubing Institute. Section 9. The term "Confidential Agent" as used herein is de- fined to mean the impartial agency designated by the Supplementary (\«\v Authority. Section 10. The term " Federation " as used herein is defined to mean the Fabricated Metal Products Federation or its successor. Section 11. The "Supplementary Code Committee" is the com- mittee appointed by the Flexible Metal Hose and Tubing Institute to present this Supplementary Code. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and without limitation the wage, hour and labor provisions in Article III of its Basic Code as approved by the President, November 2, 1933, including Section 1 of said Article III, by which the pro- visions of subsections (1), (2) and (3) of Section 7, (a) of Title I of the Act are made conditions of this Code, are specifically incor- porated herein and made a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV — Organization and Administration Section 1. During the period not to exceed sixty (60) days follow- ing the effective date, the Supplementary Code Committee of the Industry shall constitute a Temporary Supplementary Code Au- thority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementary ( !ode Authority consisting of six members to be elected by the mem- bers of the Industry, at a meeting called by the Temporary Sup- plementary Code Authority, upon ten days' notice sent by registered mail to all members of the Industry whose names may be ascertained after diligenl search, who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following annual meeting of the Institute, and thereafter, members of the Supplementary Code Authority shall be elected at each annual meeting of the Institute to serve until the following annual meeting. The members of the Supplementary Code Authority shall be elected in the following manner: (a) Five members who shall he members of the Institute, by a majority vote of the members of the Institute present in person or by proxy, each member to have one vote. (b) One member who is a member of this Industry, but not a member of the Institute to be selected and elected by the nonmem- bers of the Institute present in person or by proxy, each member to have one vote. In case the non-members fail to elect the non-member as herein- above provided, the Administrator shall appoint such non-member from a list of four non-members to be furnished by the Confidential Agent. A vacancy in the membership of the Supplementary Code Au- thority may be filled by a majority vote of the remaining members of the Supplementary Code Authority, provided, however, that the representation as set forth in Section 1, Subsections (a) and (b) of this Article shall be maintained. In addition thereto the Administrator may appoint a member to the Supplementary Code Authority who shall be without vote and shall serve without expense to the Industry, unless the Supple- mentary Code Authority agrees to pay such expense. The repre- sentative who may be appointed by the Administrator shall be given reasonable notice of and may sit at all meetings of the Supple- mentary Code Authority. Section 2. Any Association/Institute directly or indirectly par- ticipating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions on member- ship, and (2) shall submit to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amendments when made thereto, together with such information as to member- ship, organization, and activities as may be necessary to effectuate the purposes of the Act. Section 3. In order that the Supplementary Code Authority shall, at all times, be truly representative of the Industry and in other respects comply with the provisions of the Act, the Administrator may prescribe such Hearings as he may reasonably deem proper; and, thereafter, if he shall find that the Supplementary Code Author- ity is not truly representative or does not in other respects comply with the provisions of the Act, may require removal of any or all of the members thereof and may make appropriate modification or modifications in the method of selection of the Supplementary Code Authority. Section 4. Every employer shall provide for the safety and health of employees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the Supple- mentary Code Authority to the Administrator within six (G) months after the effective elate of the Supplementary Code. Section 5. All members of the Industry are subject to the juris- diction of the Supplementary Code; shall be entitled to participate in and share the benefits of the Supplementary Code; shall be en- titled to vote in the selection of members of the Supplementary Code Authority as provided in Section 1 of this Article. Section G. It being found necessary, in order to support the ad- ministration of this Supplementary Code and to maintain the stand- ards of fair competition established by this Supplementary Code and to effectuate the policy of the Act, the Supplementary Code Authority is authorized, subject to the approval of the Administrator: (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Supplementary Code; (b) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem necessary, (1) an itemized budget of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the Industry; (c) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and secure equitable, con- tribution as above set forth by all such members of the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. Section 7. Only members of the Industry complying with the Supplementary Code, and contributing to the expenses of its admin- istration as provided in Section 6 hereof shall be entitled to partici- pate in the selection of the members of the Supplemental^ Code Authority as provided in Section 1 hereof or to receive the benefit of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. Section 8. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose. Nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent or employee of the Supplementary Code Authority, nor shall ai^ member of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his own wilful malfeasance or non-feasance. Section 9. The Supplementary Code Authority shall also from time to time furnish to the Basic Code Authority, designated in said Basic Code, such information as may be required to be furnished under terms of said Basic Code. Section 10. The Supplementary Code Authority shall have all the powers and duties wdiich shall be necessary or proper to enable it to fully administer this Code and to effectuate its purpose. "Without limitation to the foregoing or any other powers or duties provided for in this Supplementary Code, the Supplementary Code Authority shall have the following specific duties, subject to such rules and regulations as the Administrator may prescribe. (a) To adopt By-Laws and Rules and Regulations for, and keep records of its procedure and for the administration of the Supple- mentary Code under such rules and regulations as may be pre- scribed by the Administrator. (b) The Supplementary Code Authority shall designate a Con- fidential Agent who shall collect all data necessary for the admin- istration of this Supplementary Code. Such Confidential Agent shall hold all data in strict confidence except as is needed for the administration of this Supplementary Code. (c) To obtain from members of the Industry through the Con- fidential Agent such information and reports as are required for the administration of the Supplementary Code. In addition to in- formation required to be submitted to the Supplementary Code Authority, members of the Industry subject to this Supplementary Code shall furnish such statistical information as the Adminis- trator may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State agencies as he may designate; provided that nothing in this Supplementary Code shali relieve any member of the Industry of any existing obligations to furnish reports to any government agency. No individual report shall be disclosed to any other member of the Industry or any other party except to such other governmental agencies as may be directed by the Administrator. (d) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supple- mentary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. (e) To make recommendations to the Administrator for the co- ordination of the Administration of this Supplementary Code with such other codes, if any, as may be related to the Industry. (f) To secure from members of the Industry an equitable and proportionate payment for the reasonable expenses of maintaining the Supplementary Code Authority and its activities. (g) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those members of the Industry who have assented to, and are complying with, this Supplementary Code. (h) To recommend to the Administrator further fair trade prac- tice provisions to govern members of the Industry in their relations with each other or with other industries and to recommend to the Administrator measures for industrial planning, including stabili- zation of employment. Section 11. If the Administrator believes that any action of the Supplementary Code Authority or any agency thereof is unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action. Further action by such Supplementary Code Authority or agency regarding the matter complained of may be taken if approved by the Administrator but shall not be taken if disapproved by the Administrator within thirty days of notice to him of intention to proceed with such action. Section 12. Any or all information furnished to the Confidential Agent pursuant to the provisions of the Supplementary Code by any corporate member of the Industry specifically assenting hereto pursuant to the provisions of this Supplementary Code shall be subject to checking for the purpose of verification by an examination of the pertinent books and accounts and records of such member by the Confidential Agent or by any accountant or accountants or other person or persons designated by the Supplementary Code Authority (none of whom shall be connected with any member of the Industry) and subject to disapproval by the Administrator and shall be so checked for such purpose if the Supplementary Code Author- ity shall require it. The cost of each such examination shall he treated as an expense of administering the Supplementary Code. Article V — Accounting and Costing With respect to that portion of his product which is within the Industry, every member of the Industry shall use an accounting system for determining his allowable cost which conforms to the principles of, and is at least as detailed and complete as, the uniform method of accounting, and the uniform method of costing, to be formulated by the Supplementary Code Authority and approved by the Administrator with such variations therefrom as may be re- quired by the individual conditions affecting any member or group of members of the Industry, and as may bo approved by the Supple- mentary Code Authority and the Administrator. Article VI — Selling Below Cost No member of this Industry shall sell or exchange any product of the Industry, at a price, or upon terms and conditions, which will result in the purchaser paying for the goods received, less than the allowable cost thereof to the seller, determined in accordance w T ith a uniform method of costing as provided in Article V, provided, how- ever, that dropped lines, or seconds, or inventories which' must be con- verted into cash to meet emergency needs may be disposed of by any member of the Industry, at any price and on any terms and condi- tions, but only if such member of the Industry not less than two weeks before such disposal, has filed with the Supplementary Code Authority, or its confidential agent, a statement in writing, setting forth the facts of, and reasons for, such proposed disposal, and pro- vided further, that any member of the Industry may sell below his costs in order to meet competitive prices that do not violate this Sup- plementary Code filed in accordance with the provisions of Article VII of this Supplementary Code, or to meet competition from prod- ucts of equivalent design, character, quality, or specifications, manu- factured outside the United States, provided that he has first so reported to the Supplementary Code Authority and in such report has cited the competition which caused him to take such action. Article VII — Price Lists Section 1. If the Supplementary Code Authority determines that it has been the generally recognized practice in this Industry, or in any branch or subdivision thereof, to sell certain products of this Industry on the basis of net price lists, or price lists and discount sheets, each member of this Industry manufacturing and selling such products shall, within ten (10) days after notice of such deter- mination, file with the Supplementary Code Authority through its Confidential Agent a net price list, or price list and discount sheet, in such form and for such products as the Supplementary Code Authority may pri scribe and the Supplementary Code Authority 10 through its Confidential Agent shall immediately send copies thereof to all known manufacturers of such products. Such price lists shall be available to all interested buyers at the office of the Confidential Agent. Revised price lists and/or discount sheets and/or all other con- ditions of sale may be published and filed from time to time there- after with the Supplementary Code Authority through its Confi- dential Agent by any member of this Industry, but such revised price lists and/or discount sheets and/or all other conditions of sale shall be filed with the Supplementary Code authority through its Confidential Agent and shall become effective five (5) business days after actual receipt by the Confidential Agent. Copies of such re- vised price lists and/or discount sheets and/or all other conditions of sale, with notice of the effective date thereof, shall be immediately sent to all known manufacturers of such products and shall be avail- able to all interested buyers at the office of the Confidential Agent; and any member of this Industry may file, if he so desires, revisions of his price lists and/or discount sheets and/or all other conditions of sale, which shall become effective at the date when the revised price lists and/or discount sheets and/or all other conditions of sale first filed become effective, provided that he shall not establish prices lower, nor discounts greater, nor conditions of sale more favorable than those contained in the revised price lists and/or discount sheets and/or all other conditions of sale first filed. 1 Section 2. If and when the Supplementary Code Authority shall determine that in any branch or subdivision of the Industry, not now selling its product 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 subdivision are the same as, or similar to, the distribution and marketing conditions in a branch or subdivision of the Industry where the use of price lists, with or without discount sheets, and other fixed conditions of sale, is well recognized, and where the use of price lists, with or without discount sheets, with other fixed conditions of sale should be put into effect in such branch or subdivision, then each manufacturer of the product or products of such branch of subdivision shall within twenty (20) days after notice of such determination, file with the Supplementary Code Authority or its Confidential Agent, net price lists or price lists and discount sheets, containing all other fixed conditions of sale, and such price lists and/or discount sheets and/or other fixed conditions of sale may be thereafter revised in the manner herein above provided; provided, however, that the Supplementary Code Authority shall make no determination to place any product of the Industry (not now on a price list basis) on a price list basis as provided in this Section 2 of Article VII unless two thirds of the members of the Industry who are at that time engaged in manu- facturing such product shall affirmatively consent that such de- termination be made. Section 3. Each member of the Industry shall furnish the Sup- plementary Code Authority for distribution with such number of copies of his price lists and/or discount sheets as the Supplementary Code Authority may prescribe. 1 See paragraph 2 of order approving this Code. 11 Section* 4. No member of the Industry shall sell, directly or indi- rectly, by any means whatsoever, any product of the Industry covered by provisions of tins Article VII at a price or at discounts, or on other conditions of sale other than those provided in his own current net price lists, or price lists and discount sheets. Section 5. The Supplementary Code Authority shall have po to investigate, subject to such rules and regulations as may be pre- scribed by the Administrator, all complaints filed by one member of the Industry against another member of the Industry. Article VIII — Unfair Trade Practices In addition to the Unfair Trade Practices covered by Article V of the Basic Code (except Section A which is not made a part of this Supplementary Code) and for all purposes of this Supplemen- tary Code the following described acts shall constitute unfair prac- tices. Any member of this Industry who shall directly or indirectly through any officer, employee, agent or representative use or employ any of such unfair practices shall be guilty of a violation of this Supplementary Code. Section 1. Defaults : Neglect by a member of the Industry to en- force contracts, or variation from the terms or conditions of con- tracts when established, in order to influence sales, or as a means of evading price schedules, is 'forbidden as unfair competition. Section 2. Lump Sum Bidding: It is an unfair method of com- petition to quote a total price, or a lump sum, on a schedule of prod- ucts or materials, either without indicating in such bid the net price of each individual item or by quoting a total price on any other basis than the total of the published unit prices. Any variation therefrom by addition or deduction, except on the same basis of the published unit price is also an unfair method of competition except that a price for a complete assembly, namely, a section of hose with couplings attached, is permissible. Section 3. Samples : It is an unfair method of competition for any manufacturer to ship and deliver on any order which was ac- cepted based on samples submitted, any product or material not in strict accordance with the samples on which the order was based. Section 4. Interference with Another's Contracts: No member of this Industry shall knowingly attempt to induce the breach of any written contract between a competitor and his employee, representa- tive, agent or distributor, customer or source of supply; nor shall any such member knowingly interfere with or obstruct the perform- ance of such contractual duties or services. This clause shall not be construed to apply to contracts of employment. Section 5. Classification : The false classification of any product of this Industry for the purpose of securing freight rates lower than would apply to the products if properly classified, shall be an unfair method of competition. Section 6. Combination Sales: No member of this Industry shall sell or offer to sell commodities other than products of this Industry for the purpose of influencing a sale, at prices below the invoice price plus all incidental costs of such products. If ami when the products of this Industry are sold in combination with products of other in- 12 dustries, the invoice must clearly show the unit price for all articles listed. Section 7. Export Trade.— {a,) No provision of this Code relating to prices or terms of selling, shipping or marketing, shall apply to export trade or sales or shipments for export trade. " Export Trade " shall be as defined in the Export Trade Act adopted April 10, 1918. (b) Selling for export by any member of the Industry any product of the Industry which is not actually exported, as hereinabove de- fined in subsection (a) of this section shall be deemed a violation of this Supplementary Code. Section 8. Terms of Payment. — (a) Terms of payment shall not be more favorable to the purchaser than net cash thirty days or one percent discount for cash for payment as follows: Bills dated the first to the fifteenth inclusive, if paid on or before the twenty-fifth of the month ; bills dated the sixteenth to and including the last day of the month, if paid on or before the tenth of the following month. Bills will be dated the day of shipment. On accounts not paid within forty-five days from the end of the month in which bills are ren- dered, interest will be charged at the rate of six percent or the legal maximum, whichever is lower per annum beginning on the first of the month following the date on which payment is due, but no interest amounting to less than one dollar shall.be charged. Bills for such interest will be rendered monthly. Article IX — Monopolies No provision of this Supplementary Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. Article X — Modifications Section 1. This Supplementary Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with 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 said Act. Section 2. This Suplementary Code, except as to provisions re- quired by the Act, may be modified or amended on the basis of experience or changes in circumstances, such modifications or amendments to be based upon application by the Supplementary Code Authority or other Representative group within this Industry to the Administrator and such Notice and Hearing as he shall specify and to become effective and to be a part of this Supplementary Code on approval by the Administrator. Article XI — Price Increases Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs 13 should be delayed, but when made, such increases should, so far as possible, be limited to actual additional increases in the seller's costs. Article XII — Effective Date and Duration This Supplementary Code shall become effective on 12:01 o'clock Eastern Standard Time on the tenth day after it is approved by the President and shall continue in effect, until June 10, 1935, or the earliest date prior thereto on which the President shall, by procla- mation, or the Congress shall, by joint resolution, declare that the emergency recognized by Section 1 of Title I of the National Industrial Recovery Act has ended. Approved Code No. 84 — Supplement No, '■'<■',. Registry No. 1140-04. o UNIVERSITY OF FLORIDA lllllllllllllllllllll 3 1262 08856 0874