v/ Approved Code No. 84 — Supplement No. 31 Registry No. 1128—08 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WARM AIR FURNACE PIPE AND FITTING MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON MAY 18, 1934 E DO OUR PART U.S. DEPOSITORY 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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Seattle, Wash.: 809 Federal Office Building. ^ Approved Code No. 84— Supplement No. 31 Registry No. 1128-03 ERRATA SHEET SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WARM AIR FURNACE PIPE AND FITTINGS MANUFACTURING INDUSTRY As Approved on May 18, 1934 Page 4, article II, Section 1, fourth line, the word " place " should read " plate ". 80517°— 1044-76 34 0. I. GOVERNMENT PRINTINC OFFICE , t(S4 Digitized by the Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/supplementarycod7409unit Approved Code No. 84 — Supplement No. 31 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WARM AIR FURNACE PIPE AND FITTINGS MANUFACTURING INDUSTRY As Approved On May 18, 1934 ORDER Approving Supplementary Code of Fair Competition for the Warm Air Furnace Pipe and Fittings 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 16, 1933, and in accordance with the provisions of Section I 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 approval of a Supplementary Code of Fair Competition for the Warm Air Furnace Pipe and Fittings Manufacturing Industry, and hearing having been duly held thereon; and the annexed report on said Supplementary 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 Pres- ident, 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 re- spects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Sup- plementary Code of Fair Competition be and it is hereby approved ; provided, however, that the provisions of Article VII, Paragraph (a) insofar as they prescribe a waiting period between the filing with, the Code Authority (or such agency as may be designated in the 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 are stayed pending my further Order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glancy, Division Administrator. Washington, D.C., May 18, 1934. 60080° 544-107 — —34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Supplementary Code of Fair Compe- tition for the Warm Air Furnace Pipe and Fittings Manufacturing Industry a division of the Fabricated Metal Products Manufactur- ing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., February 9, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Warm Air Furnace Pipe and Fittings Manufacturing Indus- try, 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 sub- mitting a Supplementary Code of Fair Competition, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coat- ing Industry approved by you on the second day or 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 to be elected by the members of the Industry at a meeting called by the Temporary Supplementary Code Authority, and gives the Administrator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. Article V provides for an accounting system and methods of cost finding and/or estimating. Article VI provides for determining the lowest reasonable cost of the products of this Industry. Article VII provides for methods of setting up and revising price lists, and for investigation of price lists and terms of sale. Article VIII sets forth the unfair trade practices of this Sup- plementary 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 increase 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 Sup- plementary 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 organiza- tion 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 re- spects with the pertinent provisions of said Title of said Act, in- cluding without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant group is an industrial group truly representative of the aforesaid Industry; and that said group 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, A dtrdnis trot or. May 18, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WARM AIR FURNACE PIPE AND FITTINGS MAN- UFACTURING 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 Sup- plementary Code of Fair Competition for the Warm Air Furnace Pipe and Fittings Manufacturing Industry. Pursuant to Article VI of the Basic Code of Fair Competiton for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved by the President of the United States on the second day of November, 1933, the provisions of this Supplementary Code shall be the standard of fair competition for and shall be bind- ing upon ever}' member of the Industry. Article II — Definitions Section 1. The term " Warm Air Furnace Pipe and Fittings Manufacturing Industry " as defined herein means the manufac- turing for sale or exchange of warm air furnace and flue pipes, elbows, or fittings manufactured from galvanized steel or iron, tin place, black steel or iron, or other basic materials used in substi- tution thereof. Section 2. The terms " President ", "Act " and "Administrator " as used herein shall mean respectively the President of the United States, the National Industrial Recovery Act, and the Administra- tor for Industrial Recovery under said Act. 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 Industry 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. Section 5. The term " employee " as used 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 6. The term " employer " as used herein includes anyone by whom any such employee is compensated or employed. Section 7. The term " Supplementary Code Authority " as used herein moans the agency which is to administer this Supplementary Code as hereinafter provided. (4) Section 8. The term " Institute " as used herein means the Fur- nace Pipe Institute or its successor. Section" 9. The term "Association " as used herein means the Eastern Pipe and Elbow Manufacturers Association or its successor. Section 10. The term " Confidential Agent " as used herein, is defined to mean the impartial agency designated by the Supplemental Code Authority. Section 11. The term " Supplementary Code Committee " as used herein is defined to mean the committee authorized to present this Supplementary Code. Section 12. Whenever used in this Supplementary Code the terms set forth in this Article II shall, unless the context shall otherwise indicate, have the respective meanings as hereinabove in this Article II set forth. The definition of any such term in the singular shall apply to the use of such term in the plural and vice versa. 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 Arti- cle III of its basic code as approved by the President November 2, 1933, including Section 1 of said Article III by which the provisions of Sub-sections (1). (2) and (3) of Section 7 (a) of Title I of the Act are made conditions of this Code, are specifically incorporated 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 fol- lowing the effective date, the Supplementary Code Committee of the Industry shall constitute a Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be consti- tuted within the sixty-day period a Supplementary Code Authority consisting of six (6) members to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten days' notice sent by registered mail to all known members of the Industry, 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 Associ- ation and Institute, and thereafter, members of the Supplementary Code Authority shall be elected at each annual meeting of the Asso- ciation and Institute to serve until the following annual meeting. The members of the Supplementary Code Authority shall be elected in the following manner : (a) Two members who are not members of the Association or Institute by a majority vote of the members of the Industry present in person or by proxy, each member to have one vote. (b) Two members who shall be members of the Association by a. majority vote of the members of the Association, present in person or by proxy, each member to have one vote. (c) Two members who shall be 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. A vacancy in the membership of the Supplementary Code Author- ity may be filled by a majority vote of the remaining members of the Supplementary Code Authority. In addition thereto the Administrator may appoint a member of 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 all meetings and may sit at all meetings of the Supplementary 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 use due diligence in submitting to the Adminis- trator true copies of the Articles of Association, By-Laws, Regula- tions and any amendments when made thereto, together with such other information as to membership, organization, and activities as may be reasonably 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 Au- thority is not truly representative or does not in other respects conlply with the provisions of the Act, may require the 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. 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, and shall pay their reasonable share of the expenses of the Administration of this Supplementary Code, such reasonable share to be determined by the Supplementary Code Authority, subject to review by the Administrator on the basis of volume of business and/or such other factors as may be deemed equitable. Section 5. 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 any 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 misfeasance or non-feasance. Section 6. 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 7. The Supplementary Code Authority shall have all the powers and duties which shall be necessary and proper to enable it to fully administer this Supplementary 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: (a) To adopt by-laws and rules and regulations for, and keep records of its procedure and the administration of this Supple- mentary Code. (d) To designate a confidential agent who shall obtain from mem- bers of the Industry such information and reports as are required for the administration of the Supplementary Code, provided that all such reports and information shall be treated as confidential by the Supplementary Code Authority and each member thereof, and shall not be disclosed to any other member of the Industry or any other party except where necessary in the enforcement of this Supple- mentary Code or to such governmental agencies as may be directed by the Administrator, and provided further that nothing in this Supplementary Code shall relieve any member of the Industry of any existing obligations to furnish reports to any government agency. (c) 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. (d) 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. (e) To secure from members of the Industry an equitable and proportionate payment of the reasonable expenses of maintaining the Supplementary Code Authority and its activities. (f ) To cooperate with the Administrator in regulating the use of any N. It. A. insignia solely by those members of the Industry who have assented to, and are complying with, this Supplementary Code. (g) 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 8. Every employer shall provide for the safety and health of employees during the hours and at the places of their em- ployment. Standards for safety and health shall be submitted by the Supplementary Code Authority to the Administrator within six months after the effective date of the Supplementary Code. Section 9. If the Administrator shall determine that any action of a Supplementary Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administra- tor may require that such action be suspended to afford an oppor- tunity for investigation of the merits of such action and further consideration by such Supplementary Code Authority or agency pending final action which shall not be effective unless the Adminis- trator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with such action in its original or modified form. Article V — Accounting and Costing Section 1. With respect to that portion of his product which is within the Industry, every member of this Industry shall use an accounting system for determining his allowable cost which con- forms 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 required by the individual conditions affecting any mem- ber of this Industry or group of members of this Industry. Section 2. When the Supplementary Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Supplementary Code, the Supplementary Code Authority may cause to be deter- mined the lowest reasonable cost of the products of this Industry, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, dis- approve, or modify the determination. Thereafter, during the period of the emergency, it shall be an unfair trade practice for any member of this Industry to sell or offer to sell any products of the Industry 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 prod- ucts. When it appears that conditions have changed, the Supple- mentary Code Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. Article VI — Selling Below Cost No member of this Industry shall sell or exchange any of the products of this 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 with a uniform method of costing above described; provided, however, that dropped lines, or seconds, or inventories which must be converted into cash to meet emergency needs may be disposed of by any member of this Industry, at any price and on any terms and conditions, but only if such member of this Industry, not less than two weeks before such disposal, has filed with the Supplementary Code Authority or its Confidential Agent, a state- ment in writing, setting forth the fact of, and reasons for, such proposed disposal, and provided further, that any member of this Industry may sell below his costs in order to meet competitive prices filed in accordance with the provisions of Article VII of this Sup- plementary Code, or to meet competition from products of equivalent design, character, quality, or specifications, manufactured 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 (a) Each member of the Industry shall within ten (10) days after the effective date of this Supplementary Code, file with the Supplementary Code Authority through its Confidential Agent, a net price list, or a price list and discount sheet, as the case may be, individually prepared by him, and in such form and for such prod- ucts as the Supplementary Code Authority may prescribe showing his current prices, or prices and discounts, and terms of sale and payment, and the Supplementary Code Authority through its Con- fidential Agent shall immediately send copies thereof to all known manufacturers of such specified product. Such price list 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 condi- tions of sale may be filed from time to time thereafter with the Supplementary Code Authority through its Confidential 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 Supplementary Code Authority through its Confidential Agent. Copies of such revised price lists and/or discount sheets and/or all other conditions of sale with notice of the effective date specified, shall be immediately sent to all known manufacturers of such product and shall be available to all interested buyers at the office of the Confidential Agent, any of whom may file if he so desires, to become effective upon the date when the revised price list, and/or discount sheet and/or all other conditions of sale first filed shall go into effect revisions of his price lists, and/or discount sheets and/or all other conditions of sale establishing prices or prices and discounts not lower or conditions of sale not more favorable than those estab- lished in the revised price lists and/or discount sheets and/or all other conditions of sale first filed. 1 (b) If and when the Supplementary Code Authority shall de- termine 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 and 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 that Industry 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 or subdi- 1 See paragraph 2 of order approving this Code. 10 vision shall within twenty (20) days after notice of such determina- tion, file with the Supplementary Code Authority net price lists or price lists and discount sheets, containing all other fixed condi- tions 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 Supplmentary 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 paragraph (b) of Article VII unless two-thirds of the members of the Industry who are at that time engaged in manufacturing such product, shall affirmatively consent that such determination be made. (c) No member of the Industry shall sell, directly or indirectly, by any means whatsoever, any product of the Industry covered by provisions of this Article VII at a price or at discounts, or on other conditions of sale different from those provided in his own current net price lists, or price lists and discount sheets. Article VIII — Unfair Trade Practices In addition to the Unfair Trade Practices covered by Article V of the Basic Code, except Section A, and for all purposes of this Supplementary Code the following described acts shall constitute unfair practices. Any member of the 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. Rule 1. Pool Cars. Any products of the Industry shipped in mixed or pool cars shall be invoiced at the price for the quantity shipped. Rule 2. False Records. Withholding from, or inserting in any invoice a false record, wholly or in part, of the transaction repre- sented on the face thereof. Rule 3. Defamation. To defame or disparage a competitor di- rectly or indirectly, by words or acts which untruthfully impugn his business integrity, his ability to keep his contracts, his credit standing, or the quality of his products. Rule 4. Piracy of Trade Marks and Trade Names. To imitate or simulate the trade mark, trade name, package, wrapper, or label of a competitor's product to such a degree as to deceive or have a tendency to deceive customers. Rule 5. Commercial Bribery. No member of the Industry shall give, permit to be given, or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any em- ployee, agent or representative of another in relation to the business of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not be construed to pro- hibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. Rule 6. False Marking or Branding. The false marking or branding of any product of the Industry which has the tendency to mislead or deceive customers or prospective customers, whether as 11 to the grade, quality, quantity, substance, character, nature, origin, size, finish or preparation of any product of the Industry, or otherwise. Rule 7. Misrepresentation or False or Misleading Advertising. The making or causing or knowingly permitting to be made or pub- lished any false, materially inaccurate or deceptive statement, by way of advertisement or otherwise, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Industry, or the credit terms, values, policies, or services of any member of the Industry, or other- wise, having the tendency or capacity to mislead or deceive customers or prospective customers. Rule 8. Threats of Litigation. The making, publishing or cir- cularizing of threats of suits for infringement of patents or trade marks or of any other legal proceedings not in good faith and with- out bringing such suits or proceedings within a reasonable time, with the tendency or effect of harassing competitors or intimidating their customers. Rule 9. Espionage of Competitors. Securing confidential infor- mation about a competitor's business by a false or misleading state- ment or representation, by a false impersonation of one in authority, by bribery, or by any other unfair method or any other secret means where the effect may be to hinder or stifle competition. Rule 10. Interference with Another's Contracts. No member of the Industry shall knowingly attempt to induce the breach of any written contract between a competitor and his employee or customer or source of supply ; nor shall any such member knowingly interfere with or obstruct the performance of such contractual duties or services. Rule 11. Selling on Consignment. No member of the Industry shall ship goods on consignment except under circumstances to be defined by the Supplementary Code Authority, where peculiar cir- cumstances of this industry require the practice. Rule 12. Lump Sum Bids and Contracts. To submit a bid or bids for two (2) or more commodities, one of which is a product of the Industry in which the unit price of each commodity is not clearly stated. Accepting orders, or contracts for sale at a lump sum price where the contract does not specify the exact quantity, quality, and unit price of the product purchased. Rule 13. Manufacturing on Toll Basis. Members of the Industry shall not manufacture or fabricate any products of the Industry from raw materials owned by a jobber, dealer, or the agent, represen- tative, or corporate subsidiary or affiliate of such jobber, or dealer, or from raw materials the purchase of which is made upon the credit of or the payment for which is guaranteed of such jobber or dealer, or the agent, representative, or corporate subsidiary or affiliate of such jobber, or dealer. This provision shall not prohibit the opera- tions of any jobbers, or dealers owning and operating their own plants or factories. Exceptions to this Rule may be granted, for cause, by the Supplemental Code Authority subject to approval by the Administrator. Rule 14. Contracts. Making any sale or contract of sale of any Sroduct under description which does not fully describe such product l terms customarily used in the Industry. 12 Cancelling, in whole or in part, or permitting the cancellation in whole or in part of any contract of sale of any product, except for a fair consideration, or paying or allowing to any purchaser in con- nection with the sale of any product any rebate, commission, credit, discount, adjustment or similar concession other than as specified in the contract of sale and/or available to all customers of the same class. Rule 15. Standardization of Products. The Supplementary Code Authority shall make studies for the establishment of classifications, dimensional standards and quality for the products of this Industry, in cooperation with some Federal Government Agency, preferably the Bureau of Standards of the United States Department of Com- merce, with the view to their recommendation for adoption by this Industry, such standards when approA 7 ed by a majority vote of this Industry shall become the standards of this Industry within ninety (90) days and thereafter the Industry shall follow such standards. Failure to follow such standards set up by the Supplementary Code Authority, so approved by the members of this Industry, will be an unfair method of competition and a violation of this Supplementary Code. Provided, however, that exceptions from such standards may be applied for by formally petitioning the Supplementary Code Au- thority, whose decision must be rendered within sixty (60) days and if favorable to the petitioners will become final when ratified by a majority vote of this Industiy, but if unfavorable an appeal may be taken to the Administrator. In no case shall such standards be- come binding on the members of this Industry unless ratified by a majority vote thereof. Rule 16. Definition of Customers. The Supplementary Code Authority shall, with the approval of the Administrator, set up definitions for the various classes of customers within this Industry. When so approved by the Administrator, quotations, prices, dis- counts, credit terms, allowances or other conditions of sale shall be made on the basis of such definitions and deviations therefrom shall constitute unfair methods of competition and a violation of this Supplementary Code. Rule 17. Standard Forms of Contract. The Supplementary Code Authority shall devise standard forms of contracts which shall be- come effective sixty (60) days after the approval of the Adminis- trator and after such approval any deviation therefrom shall con- stitute an unfair trade practice and a violation of this Supplemen- tary Code. 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 13 Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under said Act. Section 2. This Supplementary 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 amend- ments to be based upon application by the Supplementary Code Authority or other representative group within the Industry to the Administrator and such Notice and Hearing as he shall specify and to become effective and be a part of this Supplementary Code on approval by the President and/or 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 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 at 12 : 01 o'clock A.M. Eastern Standard Time on the tenth day after it is approved by the President. Approved Code No. 84 — Supplement No. 31. Registry No. 1128-08. O UNIVERSITY OF FLORIDA 3 1262 08855 7409