Approved Code No. 347 — Supplement No. 18 Registry No. 1399—64 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE REDUCTION MACHINERY INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JUNE 11, 1934 WE DO OUR PART UNIV. OF FL LIB. DOCliyE^TS DEPT. / • f.S. DFPOJ^TO^Y UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1S34 For Bale by the Superintendent of Documents, Washington, D.C. Price 5 cents This publication is for sale by the Superintendfnt of Documents, Government Printing OfBce, Washington, D.C., and by district oflaces of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Tost Office Building. Birmingham, Ala. : 2o7 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111.: Suite ITOG, 201 North Wells Street. Cleveland, Ohio: Chamber of Conmierce. 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Approved G^de No. 347 — Supplement No. 18 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE REDUCTION MACHINERY INDUSTRY As Approved on June 11, 1934 ORDER Supplementary Code of Faie Competition for the Reduction 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 Reduction Machinery Sub- division of Machinery and Allied Products Industry, and hearings having been duly held thereon and the annexed report on said Sup- plemental Code, containing findings with respect thereto, having been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the Presi- dent, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said an- nexed report and do find that said Supplemental Code complies in all res])ects with the pertinent provisions and will promote the policy and purposes of said Title of said Act ; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby approved subject to the following conditions: 1. That the provisions of Article VIII, Section (a) insofar as they prescribe a waiting period between the filing with the Code Authorit}'' (or such agency as may be designated in the Supplemental Code) and the effective date of price lists, as originally filed and/or revised price lists or revised terms and conditions of sale, be and they hereby are staj^ed pending my further order. 2. That the provisions of the second paragraph of Article VIII, Section (d) be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution of the products of the Subdivision to the Administrator. 3. That the provisions of Article IX, Sections 5 to 10 inclusive, be and they hereby are stayed for a period of fifteen (15) days; 66508° 657-99 34 (1) then to become effective unless I, by my further order otherwise direct; within which time cause may be shown, if any there be, why the above provisions shoukl not become effective; and that the Temporarj^ Code Authority send notice of the sta}^ of these provi- sions and of the opportunity to show cause why they should not become effective to all known emplo3^ers of the Subdivision. Hugh S. Johnson, Achninistrator for Industrial Recovery. Approval recommended. Barton W. Murray, Acting Dwision Admhnstrator. Washington, D.C, June 11, 193J^. EEPORT TO THE PRESIDENT The President, The White House. Sir : This report relates to the Supplemental Code of Fair Compe- tition for the Reduction Machinery Subdivision of Machinery and Allied Products Industry as proposed by the Reduction Machinery Association. A public hearing was held in Washington, D.C. on December 21, 1933. The public hearing was conducted in 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 Reduction Machinery Subdivision, being truly representative of the manufacturers of the products defined in Article II of the Sup- plemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in the second paragraph of Article I of the Code of Fair Competition for the Machinery and Allied Products Industry, approved by you on the seventeenth day of March, 1934. The Subdivision includes the manufacture for sale of centrifugal impact crushers, generally known as hammer-mills and ring mills; disintegrators of the bar cage type ; gravity impact crushers, gener- ally known as Bradford breakers and cleaners ; rotary pot crushers ; pick and needle breakers ; single and double roll crushers, for pri- mary, secondary and fine reductions, and auxiliary equipment, in- cluding rotary drum type dry mixers (excluding concrete mixers, and mixers for cereals, seeds and nuts) and including spare, repair and replacement parts thereof, and includes all those engaged in such manufacture for sale. Employers otherwise engaged in the Farm Equipment Industry may manufacture for sale and sell re- duction machinery for processing grains and fodder on the farm under the provisions of the Code of the Farm Equipment Industry and not under the provisions of this Code. ECONOMIC EFFECT The annual sales of this Subdivision for the years 1928-1933 were as follows : 102S $3, 388, 000 1929 8, 381, 000 1930 3, 073, 000 1931 1, 850, 000 1932 1, 177, 000 1933 789, 000 (8) Annual sales in this Subdivision declined from $3,381,000 in 1929 to $789,000 in 1933, or 76.7 per cent. Invested capital declined 26.4 per cent, while production capacity increased 1.6 per cent from 1929 to 1933. The trade association, in its Code application, has estimated that this industry employed approximately 511 persons in the year 1929. A tabulation of questionnaire returns covering about 48 per cent of the entire industry, measured by 1929 employment, shows that in 1929 about 79.6 per cent of the total number of employees were factory workers. On the basis of this 79.6 per cent, 104 office workers have been segregated from the 1929 figure, leaving 407 factory workers. Estimated factory employment declined from 407 workers in 1929 to a minimum of 153 in the third quarter of 1932, or 62.4 per cent. Since then, employment increased to 267 factory workers as of November, 1933, or 74.5 per cent. Estimated man-hours per week declined from 20,635 in 1929 to a minimum of 5,750 in June, 1933, or 72.1 per cent, and increased thereafter to 9,370 in November, 1933, or 63.0 per cent. Man-hours, as of November, 1933, are based on a 35.1 hour week and a force of 267 workers; consequently, until there is an increase in man-hour requirements, little increase in emploj^ment will be caused by the adoption of the 40-hour week in this industry. The minimum wage provisions 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 50,000 population 40 cents i^er hour 10,000 to 50,000 population 38 cents per hour 10,000 population and under 3U cents per hour In addition to the minimum wage rates shown above, the Code provides that women engaged in substantially the same work as men, shall receive the same rate of pay as such men employees; that the minimum w^'ige for women employees engaged in plant oi)eration shall be not less than 87.5 i)er cent of the proper rate for the locality in which employed as specified; and that the minimum in the South shall he not less than 32 cents per hour. The estimated weekly payroll of $12,287 for this Subdivision in 1929 declined to a minimum of $2,078 in the first quarter of 1933, or 83 per cent, and increased steadilv thereafter to $5,602 in Novem- ber, 1933, or 170 per cent. Average Aveekly earnings declined from $30.19 in 1929 to a mini- nunn of $13.15 in the first quarter of 1033, or 56 per cent. Since then, avcijige weekly earnings increased steadily to $20.98 in No- vember, 1933, or about 60 per cent. The lowest minimum hourly rate paid during the three specified numths by one or more reporting concerns were as follows: Year and month Minimum hourly rate 1929, June 35 to 40 cents 1933, June 30 to 35 cents 1933, Nuvonihor 35 to 40 cents Estimated number of Factory workers receiving less than designated hourly rates Proposed for South or cities ranging from— Over 50,000 population Over 10,000 to 50,000... 10,000 and under Southern minimum Proposed minimum hourly wage (cents) Approximate Percent re- ceiving less than mini- mum 13.7 10.4 7.1 .0 Estimated number re- cpiving less than mini- mum regard- less of loca- tion Based on the distribution as of June, 1933, and, the specified per- centages of the number of wage earners receiving less than the designated rates, tiie adoption or the proposed minimum rates will cause a small increase in factory paj'rolis. The estimated increase as of June, 1933, will probably not exceed one per cent, assuming only upward adjustments in the brackets below the 40-cent minimum, and no change in man-hour requirements. RESUME OF SUrPLEME>'TAL Article I states the purpose of tiie Supplemental Code. Article II accurately defines specific terms applicable to the Sub- division as u.sed 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 National Industrial Recovery Code of the Machinery and Allied Products Industry, in accordance with the conditions of this Article governing their adoption. 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 Subdivi.sion shall be sold or exchanged below a reasonable cost when the Code Author- ity 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 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 provisions thereof are expressly made subject to the right of the President, in accordance with Subsection (b) of Section 10 of the Act, from time to time to cancel or modify anj^^ 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 Supplem^ental Code. FINDINGS The Assisitant 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 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 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 in- dustries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of indus- trial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 employees; and is not classified by me as a major industry. (c) The Supplemental Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representa- tive of the aforesaid Subdivision; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Sui)plemental Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elimi- nate or oppress small enterprises and will not operate to discriminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication in Article VIII, Section (a), trade practices, and the second para- graph of Article VIII, Section (e) arc stayed as stilted in the Ord?r. Respectfully, Hugh S. Johnson, Administrator. June 11, 1934. SUPPLEMENTAEY CODE OF FAIH COMPETITION FOR THE REDUCTION IMACHINERY INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED rRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Code of Fair Competition for the Reduction Machinery Subdivision of the Machinery and Allied Products Industry, and together with the Code of Fair Competition for the Machinery and Allied Products Industry to which it is a Supplement shall be the standard of fair competition for this Subdivision, and shall be binding on each employer therein. Article II — -Definition "Applicant " means the Reduction Machinery Association, a trade organization, all members of which are engaged in the manufacture for sale of the products -of the Reduction Machinery Subdivision of the Machinery and Allied Products Industry, which organization is truly representative of this Subdivision. " Industry " means the Machinery and Allied Products Industry, as defined in its Code of Fair Competition as approved by the Presi- dent, March IT, 1934, and as such definition maj^ from time to time be amended. " Subdivision " means the Reduction Machinery Subdivision of the Machinery and Allied Products Industry as defined and set forth in Paragraph (25) of Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows : " Reduction Machinery Subdivision '' means the manufacture for sale of Centrifugal Impact Crushers, generally known as Hammer- mills and Ring Mills; Disintegrators of the bar cage type; Gravity Impact Crushers, generally known as Bradford Breakers and Clean- ers; Rotary Pot Crushers; Pick and Needle Breakers; Single and Double Roll Crushers, for Primary, Secondary and Fine Reduc- tions, and Auxiliary Equipment, including Rotary Drum Type Dry Mixers (excluding Concrete Mixers, and Mixers for Cereals, seeds and nuts) and including spare, repair, and replacement parts thereof, and includes all those engaged in such manufacture for sale. Em- ployers otherwise engaged in the Farm Equipment Industry may manufacture for sale and sell Reduction Machinery for processing grains and fodder on the farm under the provisions of the Code of the Farm Eauipment Industry and not under the provisions of this Code. " Code " means the Code of Fair Competition for the Machinery and Allied Products Industry, as approved by the President, and as from time to time amended. (7) 8 " 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 the Subdivision by any such employer. " The Act " means Title I of the National Industrial Recovery Act. " The President " means the President of the United States. " The Administrator" means the Administrator for Industrial Eecovery. " 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 classification of products within this Subdivision, con- stituted under the authority of Article V of this Supplemental Code. " Publish " means to make available to the public. " Principles " means all essential characteristics. Article III — Adoptign of Employment PRO\^SIoxs of Code 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 here- after be administered as an autonomous Code; Article VIII, '' Modi- fications 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, except as herein modified. Article V — Organization and Administration To administer and supervise, and facilitate the performance of the provisions of this Supplemental Code, there is hereby estab- lislied a " Code Authority ^'. (a) Tlie Code Authority for this Subdivision shall consist of (1) The Executive Committee of the Reduction Machinery Asso- ciation, consisting of not less than four and not more than seven members. (2) One additional member to be elected in any fair manner, with the approval of the Administrator, by employers in this Subdivision not members of the Applicant, who are cooperating in this Supple- mental Code, as described in Section (e) hereof, if so desired, by such non-members. (3) The Administrator may, at his discretion appoint one addi- tional member (without vote and without expense to the Sub- division). (b) Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles of asso- ciation, by-laws, regulations, and any amendments when made there- to, together with such other information as to membership, organi- zation, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. (c) In order that the 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 provide such hearings as he ma}' 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 ap- propriate modification in the method of selection of the Code Au- thority, or any Group-Code Authority. The Code x^uthority may adopt rules and regulations for its pro- cedure and employ such personnel as it may deem necessary. (d) Any employer in this Subdi^'ision shall be eligible for mem- bership in the Reduction Machinery Association. (e) Any employer in this Subdivision shall be entitled to vote, subject to the provisions of Section (a) hereof, at the election of, and share in the benefits of the activities of the Code Authority and ma}'^ participate in any endeavors of the Code Authority, in the preparation of any revisions of, or additions or supplements to, this Supplemental Code, by paying his proper pro rata share of the reasonable cost of creating and administering it, as detennined by the Code Authority, such vote of employers in this Subdivision to be determined subject to the provisions of Section (a) hereof, by a 66%% vote of employers who are at that time engaged in manu:fac- turing such product, and are at that time cooperating in this Code, as above described in this Section (e) of this Article V. (f ) Employers in this Subdivision having a common interest and common problems, may be grouped by Code Authority for adminis- trative purposes into various Group Subdivisions, or product classifications. In each Group Subdivision, or product classification, there may be a Group-Code Authority approved, or appointed, by Code Authority. _ (g) If formal complaint is mode to Code Authority, that pro- visions of this Supplemental Code have been violated by any em- ployer, the Code Authority or proper Group-Code Authorit}'"^ may cause such investigation or audit to be made, to the extent permitted by the Act, as may be deemed necessary. If such investigation is •made by Group-Code Authority, it shall report the results of such investigation or audit to Code Authority for action. Unless Basic Code Authority shall take jurisdiction, the Code iVuthoi-itv' shall have the right to investigate to the extent per- mitted by the Act, and analyze any transaction coming under the 10 scope of this Supplemental Code, on which any unfair competition is alleged, to show evidence of any violation of this Supplemental Code, to report any such alleged violation to the jDroper authorities for prosecution. 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 co^ts in accordance with the principles of such methods. Article VII — Selling Below Reasonable Cost (a) When the Code Authority has reason to believe that an emergency exists as to any product or products of the Subdivision, and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the purposes or the main- tenance of the provision of this Supplemental Code, the Code Authority may cause an investigation of costs and pricing to be made by an impartial ag^ency in order to determine the existence of the emergency and the Code Authority may cause to be determined the lowest reasonable cost of the product or products of this Sub- division, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of emergency, no employer of the Subdivision shall sell or ofier to sell any products of the Subdivision for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of gale that the buyer will pay less therefor 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. AiaicLE VIII — Price Lists (a) If and when the Code Authority of this Subdivision deter- mines that in any branch or group of the Subdivision it has been the generally recognized practice to sell a specified product on the basis of net price lists, or i)rice lists with discount sheets, and fixed terms of sale and payment, each employer shall, within ten (10) days notice of such determination, file with the Code Authority a net price list, or a price list and discount sheet, as the case may be, individually prepared by him, showing his current prices, or prices and discounts, and terms of sale and payment, for such specified . product, and the Code Authority shall immediately jiublish and send co})ies thereof to all known employers who are cooperating in this Supplemental Code as descril)ed in Section (e) of Article V hereof. licvised price lists and/or discount sheets and/(u' terms of sale and payment for such i^roduct may be filed from time to time there- 11 after with the Code Aiithorit}^ by any employer, but such revised price lists and/or discount sheets and/or terms of sale and payment shall be filed with the Code Authority ten (10) days in advance of the effective date. Copies of such revised price lists and/or dis- count sheets and/or terms of sale and payment, for such product, with notice of the effective date specified, shall be immediately pub- lished and sent to all known employers who are cooperating in this Supplemental Code as described in Section (e) of Article V hereof, any of whom may file, if lie so desires, to become effective upon the date when the revised price list and/or discount sheet and/or terms of sale and payment first filed shall go into effect, revisions of his price lists and/or discount sheets and/or terms of sale and payment establishing prices or prices and discounts not lower or terms of sale and payment not more favorable than those established in the re- vised price lists and/or discount sheets and/or terms of sale and payment first filed. Nothing in the foregoing shall constitute a limitation upon the right of any employer to file revised lists fixing his own prices, discounts and terms of sale and pa};ment, which prices and discounts may be either more or less favorable than those contained in any other price list, to be effective as provided in the first sentence of this paragraph. (b) If and when the Code Authority shall determine that in any branch or group of the Subdivision not now selling its product on the basis of price lists, with or without discount sheets, with 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, and fixed terms of sale and payment, is well recognized, and that a S3'stem of selling on net price lists or price lists and discount sheets with fixed terms of sale and payment for such product should be put into effect in such branch or group, then each employer of such branch or group shall within ten (10) days after notice of such determination, file with the Code Authority net price lists or price lists and dis- count sheets, containing fixed terms of sale and payment, showing his current prices and discounts and terms of sale and payment, and sucli price lists and/or discount sheets and/or terms of sale and joay- ment may be thereafter revised in the manner hereinabove provided ; provided, however, that the Code Authority shall make no deter- mination to place any product of the Subdivision (not now^ on a price list basis) on a price list basis, as provided in this paragraph (b) of Article VIII, unless 66%% vote of employers Avho are at that time engaged in manufacturing such product and are at that time coo|x^rating in this Code as described in Section (e) of Article V hereof, have given their affirmative consent to such determination; provided, however, that each employer who reports his sales, shall have at least one vot^.. Each employer shall prepare and shall furnish the Code Authority for distribution with such number of copies of his price lists and/or discount sheets and terms of sale and pajnnent as Code Authority may prescribe. (c) No employer shall sell directly or indirectly by any means whatsoever, any product of the Subdivision covered by provisions 12 of this Article VIII at a price or at discounts, or on terms of sale and payment, different from those provided in his own current net l^rice lists, or price lists and discount sheets, provided that nothing in the above shall prevent an employer from adding to his own price and/or price list and discount sheets by increasing his job price to include unusual selling, engineering, servicing, financing, financial risks, or other similar special charges ^except as provided in Article VII above) provided, however, that m the event of an employer quoting a higher price than the price published in his own j^rice list and/or price list and discount sheets, to take care of unusual selling, engineering, servicing, financing, financial risks, or other similar special charges, he shall not subsequently quote a lower price on said prospective sale than that price first quoted, except in accord- ance with revised price lists duly filed or unless he simultaneously eliminates part or all of the unusual engineering, servicing, financing, financial risks or other similar special charges, for which a corre- sponding reduction only may be made, (d) No employer shall sell to, or through any broker, jobber, com- mission account or sales agency (this is known in the trade as " pooled buying ") who or which is in fact an agent for an organization of industrial consumers, with the result that any industrial consumer secures a discount, allowance or price other than the discount, allow- ance or price provided for in the employer's own current net price lists or price lists with discount sheets. No cmi^loyer shall evade an^ provision of this Code by selling to or tlirough any dealer, jobber, distributor or other selling agency which shall fail to agree to resell in accordance with the provisions of Articles VII, VIII and IX of this Supplemental Code. (e) Wherever by the provisions of this Article Ylll an employer is or may be required to or permitted to file terms of sale and pay- ment, such terms shall mean usual or standard terms, and to cover any special and/or unusual terms definite formulae for determining such special and/or unusual terms shall be filed. (f ) If and when Code Authority shall determine that it is undesir- able 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 heretofore been required, such filing shall cease and the provisions of this Article shall not ap})l)'^ to such product unless and until Code Authority shall again determine that such filing be made. Article IX — Trade Practices Each of the following acts and practices is deemed to be inimical to the best interests of this Subdivision, and of the public, and each is, tliorefore, hereb^y declared to be, and to constitute, an unfair method of competition, viz : — 1. The secret offering or making, to any customer, agent, fiduciary or representative of customer, of any payment or allowance of a rebate, refund, commission, credit, credit subsidy, unearned discount or exces:s allowance, whether in the form of money or otherwise, or any special service or privilege, for the purpose of influencinn: a sale. No employer of the Subdivision shall give, permit to be given, or 13 offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of such employee or the principal of such agent without the knowledge of such em- ployer or principal, provided that no provision of this Code shall be construed to prohibit free and general distribution of articles com- monly used for advertising, except so far as such articles are actually used for commercial bribery as hereinabove defined. 2. Any discrimination betAveen purchasers, by the sale of any arti- cle having a published price, at any price other than the seller's published price, by means of direct or indirect price concessions, or by means of any privilege not extended to purchasers generally. 3. Untruthfully advertising, representing, or marking any product, with intent to deceive or mislead. 4. The publishing or circularizing of threat of any suit for in- fringement of patent or trade mark, or of any other legal proceedings, not in good faith, which would tend to harass a competitor or intimidate his customers. 5. The taking in trade or accepting in trade any secondhand or old equipment in part payment for new, provided, however, that this provision shall not be construed to prohibit in any way the return within six months of the date of shipment, to the Vendor and the allowance of any fair adjustment thereon by the Vendor of any product which shall not meet the purposes for which it w^as sold. Any employer may, however, assist in finding a bona fide buyer for said equipment, but shall in no case take any financial interest in it. 6. So long as the maker of any product of this Subdivision bear- ing the maker's name or trade mark, which has required special designing, research or development expense (or his successor in business) continues to make and supply such spare, repair and re- placement parts therefor, suppljdng repair parts for such product of this Subdivision unless (a) the name of the maker of such copied non-genuine repair parts shall be plainly marked on each part (or if this is impracticable on the package or tag) so that the ultimate user is clearly informed by marking on such parts, packages, tags and in catalogues, price lists, quoted prices, advertisements or ad- vertising literature of the manufacturer of such copied non-genuine parts that said parts Avere not made by the original maker of the products of the employer of this Subdivision. 7. The furnishing to any purchaser, and/or his agent, directly or indirectly of detailed shop draAvings of the products of this Sub- division Avithout filing a statement of such proposed transaction with the Code Authority A\diich may approA^e or with the approval of the Administrator disapproA^e tlie transaction within ten (10) days by written notice to the employer. 8. Disseminating false or misleading information relatiA^e to com- petitor's products, selling prices, reputation, credit or financial standing, ability to perform Avork, or labor conditions. 9. Inducing or attempting to induce a breach or abandonment of contract covering the purchase or sale of the products of this Sub- division; provided, however, that nothing in this Section shall be construed to prohibit the attempt on the part of the owner of or UNIVERSITY OF FLORIDA Iliiiilllilillilill 14 3 1262 08853 8193 licensee under any patent to induce a purchaser or future purchaser of any product which shall infringe said patent, to avoid such jDurchase. 10. It shall be an unfair trade practice for any employer to en- gage in destructive price cutting. Article X — Sales for Export The provisions of this Supplemental Code concerning pricing and marketing (Articles VII, VIII and IX) shall not apply to direct export sales of any product. A similar exemption may be granted by the Code Authority of this Subdivision as to sales of any product destined ultimately for export. Unless otherwise determined by the Code Authority the term " export " shall include all shipments to all places without the several states of the United States and the District of Columbia; provided, however, that no shipment to any territory or possession of the United States shall be considered an export when any emploj-er is engaged in the industry in such terri- tory or possession. Article XI — Modifications (a) As provided by Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. (b) Study of the trade practices of this Subdivision will be con- tinued by Code Authority, with the intention of submitting, from time to time, after its effective date, amendments or additions to, or revisions of, or supplements to, this Supplemental Code. Any such amendments, additions, revisions, or supplements, pro- posed by Code Authority, and approved by a 75% vote of the em- ployers shall be in full force and effect upon approval by the President, The eligibility requirements, method, and effect of such voting shall be the same as provided in Section (b) of Article VIII. Article XII — Monopolies The Supplemental Code presented by Applicant is not designed to promote monopoly, and shall not be so construed or applied as to oppress or eliminate small enterprises or discriminate against them, and is designed to effectuate the Policy of the Act. Article XIII — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in tliis Subdivision on the eleventh day after its approval by the President. Approved Code No. 347 — Supplement No. 18. Registry Number 1309-64. o