v^ Approved Code No. 347— Supplement No. 38 Registry No. 1399 — 42 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE JACK MANUFACTURING INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON AUGUST 1, 1934 WE DO OUR PART U.S. DEP05^T0«Y \ 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 ofBces 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, Mus.s. : ISOl Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Cliai'leston. 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. 38 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE JACK MANUFACTURING INDUSTRY As Approved on August 1, 1934 OEDER Approving Supplementary Code of Fair Competition for the Jack Manufacturing Industry A division of the machinery and atjjed 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 Jack Manufacturing Sub- division of Machinery and Allied Products Industry, and hearings having been duly held thereon and the annexed report on said Supplemental Code containing findings with respect thereto, having been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said annexed report and do nnd that said Supplemental Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby approved subject to the following conditions: (1) That the provisions of Article VIII, Section (a), insofar as they prescribe a waiting period between the filing with the Code Authority and the effective date of revised price lists and/or dis- count sheets and/or terms of sale and payment, be and they hereby are stayed pending my further order ; (2) That the provisions of Article VIII, Section (e) be and they hereby are stayed pending the submission by the Subdivision of satis- factory evidence to the Administrator of the need of these provisions in the sale of its products ; (3) That the provisions of Article IX, Section 5 be and they hereby are stayed for a period of fifteen (15) days, then to become 77614° 1044-11 34 (i) effective unless I by my further order otherwise direct ; within which time cause may be shown, if any there be, why the above provisions should not become effective; and (4) That the provisions of Article IX, Sections 6 and 7 be and they are hereby stayed pending my further Order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended: Barton W. Murray, Division Ad'ininistrator. Washington, D.C, August 1, 1934. EEPORT TO THE PRESIDENT The President, The White Hoiise. Dear Sir: This is a report on the Supplemental Code of Fair Competition for the Jack Manufacturing Subdivision of Machinery and Allied Products Industry, a Public Hearing on which was held in Washington, D.C., on December 21, 1933. The Hearing was conducted in full accordance with the provisions of Title I of the National Industrial Recovery Act. general statement The Jack Manufacturing Subdivision being representative of the manufacturers of the products defined in Article II of the Supple- mental 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 Jack Manufacturing Subdivision means the manufacture for sale of jacks and parts thereof used generally in the construction, railroad, mining, and general industrial field, exclusive of automotive jacks, and includes all those engaged in such manufacture for sale. ECONOMIC EFFECT This Subdivision has been severely affected by the depression. This is evidenced by the steady decline in annual sales from $2,419,000 in 1929 to $516,000 in 1932, or 78.7 per cent. Sales for the first seven months of 1933 were estimated at $345 000. In 1929 this Subdivision employed 293 factory workers, which total declined to 105 in the second quarter of 1933, or 64%, and increased to approximately 160 as of October 15, 1933. Approximately 26% of the factory workers were working more than 40 hours per week during the week of June 15, 1933. The average work week declined from 47.5 hours in 1929 to 28.0 hours as of June 15, 1933, then increased to 30.5 hours as of October 15, 1933. Approximately 17.5 per cent of the total factory workers employed as of June 15, 1933, were receiving less than 40 cents per hour; 14.4 per cent were receiving less than 38 cents per hour ; and 5.6 per cent were receiving less than 32 cents per hour. The wage provisions for the Subdivision, which is operating under the Code of the Machinery and Allied Products Industry, provide that employees engaged in plant operations shall be paid as follows : (1) in cities of more than 50,000 population and their immediate (3) vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not more than 50,000 population and their immediate vicinity, whicli cities are not in tlie immediate vicinity of a city of more than 50,000 jDopulation, 38 cents per hour; (3) in cities of 10,000 population or less and their immediate vicinity, which cities are not in the imme- diate vicinity of a city of more than 10,000 population, 36 cents per hour, except that employees engaged in plant operations in all local- ities in the states of Virginia, Nortli Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, Louisi- ana, Texas, and Oklahoma, shall be paid not less than 32 cents per hour. When females do substantially the same work as males or replace males, they shall receive the same pay. However, no female em- ployee shall be paid less thsnf 871/2% of the proper rate for the locality in which employed. Employees other than those engaged in plant operations shall receive not less than $15.00 per week. Office boys and girls and apprentices shall be paid not less than 80% of the minimum wage. This Supplemental Code provides that no person under sixteen years of age shall be employed in this Subdivision. RESUilE OF SUPPLEMENTAI. CODE Article I states the purpose of the Supplemental Code. Article II accurately defines specific terms applicable to the Sub- division as used in this Supplemental Code. Article III provides for the adoption of the employment provi- sions of the Code of Fair Competition for the Machinery and Allied Products Industry as approved by you March seventeenth, 193-1, and as from time to time amended. Article IV provides for the adoption of Articles II, VI and VIII of the Code of Fair Competition for the Machinery and Allied Prod- ucts Industr}^ in accordance with the condition of this Article govern- ing their adoption. Article V provides for the establishment of the 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 shall be sold or exchanged below a reasonable cost when the Code Authority determines that an emergency exists. Article VIII provides for methods of setting up, revising, and filing price lists and discount sheets and terms of sale and payment. Article IX sets forth trade practices for the Subdivision. Article X establishes that no provision of this Supplemental Code relating to pricing and marketing shall apply to export trade. Article XI establishes that all provisions of this Supplemental Code 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 any order, approval, license, rule or regulation issued under said Act. Provision is also made that modi- fications may be submitted by the Code Authority. Article XII provides means for withdrawal of this Subdivision from the Basic Code and its continuance as an autonomous Code. Article XIII establishes that no provision of this Supplemental Code shall be so applied as to permit monopolies and monopolistic practices or to eliminate, oppress, or discriminate against small enterprises. Article XIV states the effective date of this Supplemental Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter : I find that: (a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organiza- tion of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by othei^wise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 employees; and is not classified by me as a majo;- 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 association representative of the aforesaid Subdivision ; and that said association imposes no inequitable restric- tions on admission to membership therein. (d) The Supplemental Code is not designed to and will not per- mit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elimi- nate or oppress small enterprises and will not operate to discriminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication, trade practices and product sale are stayed as stated in the Order. Respectfully, Hugh S. Johnson, A dministrator, August 1, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE JACK MANUFACTURING INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mental Code of Fair Competition for the Jack Manufacturing Sub- division of the Machinery and Allied Products Industry, and to- gether with the Code of Fair Competition for the Machinery and Allied Products Industry, shall be the standard of fair competi- tion for this Subdivision, and shall be binding on every employer therein. Article II — Definitions '■'■ Applicant " means the Jack Manufacturing Association, a trade organization, all members of which are engaged in the manufacture for sale of the products of the Jack Manufacturing Subdivision of the Machinery and Allied Products Industry. " Industry " means the Machinery and Allied Products Industry, as defined in its Code as approved by the President, and as such definition may from time to time be amended. " Subdivision " means the Jack Manufacturing Subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph 16 of Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows: " Jack Manufacturing Subdivision means the manufacture for sale of jacks and parts thereof used generally in the construction, railroad, mining, and general industrial field, exclusive of automo- tive jacks, and includes all those engaged in such manufacture for sale." " Code " means the Code of Fair Competition for the Machinery and Allied Products Industry as approved by the President March 17, 1934, and as from time to time amended. " Person " means a natural person, a partnership, a corporation, an association, a trust, a trustee, a trustee in bankruptcy, a receiver or other entity. " Employer " means any person engaged in this Subdivision 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. " l^he Act " means Title I of the National Industrial Recovery Act. " The President " means the President of the United States. " The Administrator " means the Administrator for Industrial Recovery. (6) " Basic. Code Authority " means the Code Authority for the Machinery 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 Authointy " means the Code Authority for any group or product classification within this Subdivision. " 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 Pro- visions " 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, " Definitions ", Article VI, "Administration ", to the extent that they shall be appli- cable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code ; and Article VIII, " Modifica- tions and Termination ", are hereby adopted and made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Ajrticle V — Administration (a) A Code Authority for this Subdivision is hereby constituted to administer and supervise and to facilitate the enforcement of the Code and of this Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. (b) During a period not to exceed sixty (60) days following the effective date and pending the election of the permanent Code Au- thority, the executive committee of the Applicant shall constitute a temporary Code Authority. (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 Administration. If this method of election does not meet with the approval of the Administration then the provisions hereinbclow provided shall apply for the election of the first permanent Code Authority. For elections after the first, the provisions of this Sup- plemental Code for election of a permanent Code Authority shall (d) The Applicant shall, by written notice mailed (registered) to all emploj^ers known to the Applicant after a reasonably dili- gent search, call a meeting of employers to be held within sixty (60) days after the effective date for the purpose of adopting procedural rules and regulations for the election, organization and operation of the permanent Code Authority and electing a permanent Code Au- thority, which shall consist of not less than three nor more than 8 five members. The Administrator may, in his discretion, appoint one additional member (without vote and without expense to the Indus- try). The permanent Code Authority so elected and appointed shall succeed the temporary Code Authority. (e) Any employer shall be entitled to vote at the election of the permanent Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and par- ticipate in any endeavors of Code Authority in the preparation of any amendments or revisions of, or additions or supplements to this Supplemental Code by paying or agreeing to pay, as and when assessed, his proper pro rata share of the reasonable cost of creating and administering this Supplemental Code as determined by Code Authority, which is to be computed on the basis of the number of emi3lo3^ees, or on any other equitable basis. If the employee basis is used, the average number of persons employed by each employer, for assessment purposes, shall be fixed by the Code Authority prior to the beginning of each fiscal year, based upon the average number of persons employed during the preceding calendar year, and such figures shall not be changed during the fiscal j-ear for which fixed. (f) Action by employers in any Subdivision meeting for the elec- tion of Code Authority shall be by vote of the employers entitled to vote as provided in Section (e) of this Article V, each such em- ployer to have one vote only. Action by emploj^ers in any Subdi- vision meeting for the adoption of procedural rules, revisions or additions to the Supplemental Code, or the transaction of other busi- ness 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 Section (e), Article V of the Supplemental Code and are present in person or by proxy duly executed and filed with Code Authority ; 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 employers other than the meeting held to vote for the election oi the permanent Code Authority shall be determined by Code Author- ity, in accordance with Section (d). Article VI of the Code. (g) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for administrative purposes. There shall be a Group Code Authority approved or appointed by Code Authority for each such group. (h) In order that the Code Authority shall at all times be truly- representative of the Subdivision and in other respects comply with the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification of the Code Authority. (i) If formal complaint is made to Code Authority that provisions of this Supplemental Code have been violated by any employer, Code Authority or the proper Group Code Authority may investi- gate such complaint and, to the extent permitted by the Act, cause such investigation or audit to be made, as may be deemed necessary. If such investigation or audit is made by or for Group Code Au- thority it shall report the result of such investigation or audit to Code Authority for action. (j ) The Code Authority may appoint a Trade Practice Committee whi(!h shall meet with the Trade Practice Committees appointed under such other Codes as may be related to the Industry, for the purpose of formulating fair trade practices to govern the relation- ships between production and distribution employers under this Supplemental Code and under such others to the extent that such fair trade practices may be proposed to the Administrator as amend- ments to this Supplemental Code and such other codes. (k) Except as otherwise provided in the Act, all individual sta- tistics, data and information filed in accordance with the provisions of the Code shall be kept confidential, except with the consent of the member filing such statistics or data as to his individual sta- tistics. The statistics, data, and information of one employer shall not be revealed to any other employer, except that for the puroose of administering or enforcing the provisions of this Code, Code Authority, by its duly authorized representatives (who shall not be an employer or in the employ of any employer affected by this Code), shall have access to any and all statistics, data, and infor- mation that may be furnished in accordance with the provisions of this Code. Ajrticle 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 meth- ods have been formulated, full details concerning them shall be made available to all employers. Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such methods. Article VII — Selling Below Keasonable Cost 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 endanger the maintenance of the provisions of this Supplemental Code, the Code Authority may cause to be determined the lowest reasonable cost of the products of this Subdivision, such determina- tion 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 the emergency, it shall be an unfair trade practice for a^iy employer of the Subdivision to sell or offer to sell anj^ products of the Subdivi- sion for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than the lowest reasonable cost of such product. 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 revicAved. Section 2. The foregoing Section 1 shall not appl}^ to dropped lines which may be disposed of by any employer at any price and on an}^ terms or conditions, but only if such employer, not less than two weeks before such proposed disposal, has filed with Code Au- 10 thority a statement in writing setting forth the facts of, and reasons for, such proposed disposal and the price and terms and conditions of sale, and Code Authority has not, (with the approval of the Admin- istrator), before the termination of such two week period, in writing, disapproved the proposed disposal. Notice of such disposal, if not disapproved, shall be sent immediately to all employers manufactur- ing products of equivalent design, character, quality or specifications, 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 outside 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 Au- thority his intention so to sell, and the facts as to the competition which justifies such action. Article VIII — 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 employer engaged in the manufacture of such product shall, within ten (10) days after notice of such determination, file with Code Authority a net price list, or a price list with 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 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) and engaged in the manufacture of such specified products. Revised price lists and/or discount sheets and/or terms of sale and payment may be filed from time to time thereafter with the Code Authority by any such employer, to become operative upon the date specified therein, 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 operative date. Copies thereof, with notice of the operative date specified, shall be imme- diately published and sent to all employers cooperating under this Supplemental Code as described in Article V (e), 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 levised price list and/or discount sheets and/or terms of sale and payment first filed shall go into effect. Each em- ployer shall prepare and furnish the Code Authority for distribu- tion with such number of copies of his price lists and/or discount sheets and terms of sale and payment as Code Authority may prescribe.^ (b) If and when Code Authority shall determine that in any group of the Subdivision not now selling its product on the basis * See paragraph 2 (1) of order approving this Codt. 11 of price lists, with or without discount sheets, with terms of sale and payment, the distribution or marketing conditions in the group are the same as, or similar to, tlie distribution or marketing conditions in a group where the use of price lists, with or without discount sheets and terms of sale and payment is well recognized, and that a system of selling on net price lists or price lists and discount sheets with terms of sale and payment for such specified product should be put into effect in such group, then each emploj'er in such gi-oup shall within twenty (20) days after notice of such determination, file with Code Authority net price lists or price lists and discount sheets, with terms of sale and payment, showing his prices and dis- counts 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; and such methods of pricing and revisions thereof shall be " published and sent " as de- scribed in Article VIII (a) ; provided that Code Authority shall make no determination to place any product of the Subdivision (not now on a price list basis) on a price list basis, as provided in this Section unless affirmative consent to such determination is given by a 66%% vote of employers who are at that time cooperating under this Supplemental Code as described in Article V (e), and are engaged in manufacturing such product. The eligibility require- ments, method, and effect of such voting shall be the same as is pro- vided by Article V. (c) For the purpose of gathering statistical data for the determi- nation or revision of a lowest reasonable cost under Article VII, the Code Authority shall have power, on its own initiative, or on the request of any employer, to investigate, to the extent permitted by the Act, any price or the terms of sale and payment for any product shown in any price list and/or discount sheet filed with the Code Authority by any employer; and, for the purpose of the investiga- tion thereof, shall appoint competent representatives who shall not be an employer or in the employ of any employer affected by the Code; and also to require, to the extent permitted by the Act, such employer to furnish, under restrictions as provided in the two para- graphs of Section (f). Article VI of the Code, such information concerning the cost of manufacturing and selling such product as the Code Authority shall deem necessary or proper for such pui-pose. (d) Xo employer shall sell directly or indirectly by any means whatsoever, any product of the Subdivision covered by provisions of this Article VIII at a price or at discounts or on terms of ^ sale and payment, different from those provided in his own current net price lists, or price lists and discount sheets, and terms of sale and payment ; except as provided in Article VXE, Sections 2 and 3. (e) No employer shall evade any provision of this Code by selling to or through 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.^ Article IX — Unfair 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, * See paragraph 2 (2) of order approving this Code. 12 therefore, hereby declared to be, and to constitute, an unfair method of competition, and is hereby prohibited, viz : 1. The secret offering or making by any employer of any payment or allowance of a rebate, refund, commission credit, unearned dis- count or excess allowance, whether in the form of money or other- wise, nor shall any employer secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. 2. The giving by any employer or permitting to be given, or directly offering 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 emploj^ee, the principal of such agent or the represented party, without the knowledge of such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as herein- above defined. 3. The publishing of advertising (whether printed, radio, display or of any other nature), which is misleading or inaccurate in any material particular, nor shall any employer in any way misrepresent any goocis (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. The defamation of competitors, by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other misrepresentations with the tendency and capacity to mislead and deceive purchasers or prospective purchasers. 5. Any discrimination between purchasers, by the sale of any arti- cles having a published price and discounts, at any price and dis- counts other than the seller's published price and discounts, by means of direct or indirect price concessions, or by means of any privilege not extended to purchasers of the same class generally.^ 6. The selling to, or through any broker, commission account or sales agency, who or which is in fact an agent for an organization of industrial consumers, with the result that any industrial con- sumer secures a discount, allowance or price other than the dis- count, allowance or price provided for purchasers of the same class in the employer's own current net price lists or price lists with discount sheets.* T. The taking in trade or accepting in trade any second-hand or old equipment m 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 was 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.* 8. The indulging in destructive price cutting. » See paragraph 2 (3) of order approving this Code. * See paragraph 2(4) of order approving this Code. 13 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. A similar exemption may be granted by the Code Authority as to sales of any product destined ultimately for export. The terra. " 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) As provided by Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. (b) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority, and authorized by the affirmative vote of 66%% of the employers 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 by Article V hereof. Article XII — Withdrawal Upon thirty days notice to the Basic Code Authority and to the Administrator, this Subdivision may, upon the concurring affirmative vote of employers within the said Subdivision entitled to cast two- thirds or more of all the votes that might be cast by all emploj^ers within the Subdivision entitled to vote thereon, withdraw from the jurisdiction of the Basic Code Authority. The eligibility of voters and the method and effect of such voting shall be in accordance with the provisions of Article V hereof. After and in the event such withdrawal is accomplished this Supplemental Code, together with the provisions of the Code, shall become and be the sole code govern- ing this Subdivision, and the Code Authority shall for this Sub- division, become and be the sole Code Authority and shall perform all the functions with respect thereto. Article XIII — Monopolies Applicant imposes and shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopoly, and shall not be so construed or applied as to oppress or eliminate small enterprise or discriminate against them, and is designed to effectuate the policy of the Act. Article XIV — Effectfve Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval. Approved Code No. 347 — Supplement No. 38. Registry No. 1399-42. o UNIVERSITY OF FLORIDA illlPlililili 3 1262 08584 7670