\/ Approved Code No. 105 — Supplement No. 3 Registry No. 1404 — 36 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LEAF SPRING MANUFACTURING INDUSTRY (A Product Group of the Original Equipment and the Replacement Parts Divisions of the Automotive Parts and Equipment Manufacturing Industry) AS APPROVED ON JULY 18, 1934 WE DO OUR PART UN}V. OF FL LIB I U.S. DEPOg{T0;^V 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.O., 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. 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Approved Code No. 105 — Supplement No. 3 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LEAF SPRING MANUFACTURING INDUSTRY As Approved on July 18, 1934 ORDER Supplementary Code of Fair Competition for the Leaf Spring JNIanufacturing Industry A product group of the original equipment and the replacement parts divisions of the automotive parts and equipment manu- facturing 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 Code of Fair Competition for the Leaf Spring Manufacturing Product Group of the Original Equipment and tlie Replacement Parts Divisions of the Automotive Parts and Equipment Manufacturing Industry, a supple- mental Code to the Basic Code of the Automotive Parts and Equip- ment Manufacturing Intlustry, and hearings having been duly held thereon and the annexed report on said 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, Hugli S. Johnscm, 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 annexed report and do find that said Code complies in all respects with the pertinent provisi(jns and will promote the policy and purposes of said Title of said Act ; and do hereby order that said Code of Fair Compe- tition be and it is hereb}^ approved; provided, however, that the pro- visions of Article IV, paragraph (15), insofar as they prescribe a waiting period between the filing with the Code Authority (i.e. actual receipt by the Code Authority) and the effective date of re- vised price lists or revised terms and conditions of sale be and they are hereby stayed j^ending my further order; and provided further, that approval of the provisions of Section 5 of Article III and Sec- tions 1 and 15 of Article IV shall terminate if and when the provi- 75034° 829-101 34 (1) sions of Section 5 of Article III and Sections 1 and 9 of Article IV of the Supplementary Code for the Replacement Axle Shaft Manu- facturing Industry and Section 5 of Article III and Sections 1 and 14 of Article IV of the Supplementary Code for the Automobile Hot- Water Heater Manufacturing Industry, or any of such provisions are modified. Hugh S. Johxsot, Administrator fa?' I ndtbstri^il Recavery. Approval recommended : C. E. Adams, Division Adrniyiistrator. Washington, D.C, July 18, 19.SI REPORT TO THE PRESIDENT The President, The White House. Sir: The supplement to the Code of Fair Competition for th© Automotive Parts and Equipment Manufacturing Industry covering Fair Trade Practices for the Leaf Spring Manufacturing Product Group, a sub-division of the said Industry, was submitted to the Ad- ministrator on September 22, 1933 by the Leaf Spring Institute, rep- resenting approximately 90% of the total volume of sales and mem- bers of the Trade. The Hearing was conducted in Washington on December 7, 1933 and the supplement was revised during the recess of this Hearing and is submitted in its present form for approval. Every person who requested an appearance, was properly heard in accordance with the statutory and regulatory requirements. ^\Tiile the Product Group is nation-wide in character, it has not experienced an}^ increase in the number of establishments during the past few years. ARTICLE I states the purpose of the Supplementary Code. ARTICLE II accurately defines specific terms employed in the Supplementary Code. This Product Group is a sub-division of the Automotive Parts and Equipment Manufacturing Industry and the labor provisions of its Basic Code as approved November 8, 1933, are the labor provisions of this Supplementary Code. ARTICLE III establishes an Administrative Committee, con- sisting of the Executive Committee of the Institute and one addi- tional member, to be selected at the discretion of the Administrator and one non-voting member, to be appointed by the Administrator. It also provides machinery iov obtaining statistics and the adminis- tration of this Code. ARTICLE IV sets forth the fair trade practices of this Supple- mentary' Code, which has been especially designed to effect fair com- petition in this Product Group of the Industry. ARTICLE V provides against monopolies and monopolistic prac- tices and provides for the submission of supplementary provisions to this Sujiplementary Code or modifications thereof, and contains the mandatory provisions contained in Section 10 (b) of Title I of the Act, and stat-es the effective date of the Supplementary Code shall mean the tenth day after it has been approved. FINDINGS The Deputy Administrator in his final report to me on said Sup- plemental Code having found as herein set forth and on the basis of all the proceedings in this matter; (3) 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 amon^ 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 otherwise rehabilitating industry. (b) Said Product Group normally employs not more than 50,000 employees; and is not classified by me as a major industry. (c) The Supplementary Code as approved, complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) oi Section 7 and Subsection (b) of Section 10 thereof; and that the applicant Institute is an industrial Association, truly representative of the aforesaid Industry; and that said Institute imposes no ineq- uitable 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, Adirdnistrator. July 18, 1934, SUPPLEMENTARY CODE OF FAIR COISIPETITION FOR THE LEAF SPRING MANUFACTURING INDUSTRY A PRODUCT GROUP OF THE ORIGINAL EQUIPMENT AND REPLACEMENT PARTS DIVISIONS OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFACTUR- ING INDUSTRY Article I — Purpose Pursuant to the provisions of Article II of the Code of Fair Competition for the Automotive Parts and Equipment Manufactur- ing Industry, duly approved b}'^ the President on November 8, 1933, the following prov'isions covering fair trade practices and the ad- ministration thereof for the Leaf Spring Manufacturing Product Group which has been organized as an administrative unit under the Original Equipment and Replacement Parts Divisions of the Automotive Parts and Equipment Manufacturing Industry, are hereby established as the standards of fair competition for said Product Group and shall be binding upon every member thereof. Article II — Definitions The term " Product Group " as used herein is defined to mean the production and/or manufacture for sale of leaf springs and/or their component parts for original equipment or replacement parts on motor vehicles or any other vehicle or product except street cars or railway cars. The term " Member " or " IMember of the Product Group " as used herein includes, but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the production and/or manufacture of the products of the Product Group, either as an employer or on his or its own behalf. The term " Class 'A' Members " as used herein is defined to mean members of the Product Group whose products are sold to manu- facturers of motor vehicles or an}- other vehicle or product except street cars or railway cars, for original equipment and for service refjuirements thereon. The term " Clas ' B ' Members " as used herein is defined to mean members of the Product Group whose products are sold to customers other than buyers of original equipment for replacement of original springs or parts thereof for motor vehicles or any other vehicle or product except street cars or railway cars. The term " Class ' C ' ISIembers " as used herein is defined to mean members of the Pi'oduct Group who maintain spring service stations which manufacture a part or all of the replacement spring and parts thereof sold b}^ them for replacement of original springs and parts thereof for motor vehicles or any other vehicle or product except Btreet cars or railway cars. (6) The term " Primary Outlets " as used herein means such customers as may be so classified in accordance with the provisions of Para- graph 14 of Article IV. The term " Secondary Outlets " as used herein means such cus- tomers as may be so classified in accordance with the provisions of Paragraph 14 of Article IV. The term " Institute " as used herein is defined to mean the Leaf Spring Institute, a trade association at present having its headquar- ters office in Detroit, Michigan. The term " Basic Code " as used herein is defined to mean the Code of Fair Competition for the Automotive Parts and Equipment Manu- facturing Industry, as approved by the President on November 8, 1933. The term " Code Authority " as used herein is defined to mean the Code Authority designated in the Code of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry. Article III — Administration (1) (a) The Executive Committee of the Institute shall consti- tute the Administrative Committee to assist the Code Authority and the Administrator in the administration of the fair trade practice provisions hereinafter set forth and the provisions of the Basic Code, to which these fair trade practices are a supplement. One additional member may in the discretion of the Administrator be added to represent non-members of the Institute who assent to and comply with this supplement, such additional member to be selected by such non-members of the Institute by a fair method approved by the Administrator. (b) In addition to membership as above provided, there may be one additional member, without vote, to be appointed by the Administra- tor, to serve without expense to the Industry for such term as he may specify. (2) (a) It being found necessary, in order to support the adminis- tration of this supplement and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Administrative Committee is authorized, subject to the approval of the Administrator: (1) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the supplement ; (2) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem necessary, (a) an itemized budget of its estimated expenses for the foregoing purposes, and (b) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the Product Group; (3) After such budget and basis of contribution have been approved by the Administrator, to determine and obtain equitable contribution as above set forth by all members of the Product Group, and to that end, if necessary, to institute legal proceedings therefor in its own name. (b) Each member of the Product Group shall pay his or its equi- table contribution to the expenses of the maintenance of the Adminis- trative Committee, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Adminis- trator. Only members of the Product Group complying with the Suj^plcment and contributing to the expenses of its administration as hereinabove provided, shall be entitled to participate in the selection of members of the Administrative Committee or to receive the benefits of an}' of its voluntary activities or to make use of any emblem or insignia of the Xational Recovery Administration. (c) The Administrative Committee shall neither incur nor pay any obligation in excess of the amount thereof as estimated in its ap- proved budget, except upon approval of the Administrator ; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Adminis- trator shall have so approved. (3) (a) The Administrative Committee shall, subject to the dis- approval of the Code Authority and the Administrator, have the power to adopt by-laws and rules and regulations for its procedure and to obtain from members, directly or through an impartial agency, such information and reports as are required for the administration and enforcement of this Supplement ; to cooperate with the Adminis- trator in regulating the use of any N.R.A. insignia, to hear and adjust complaints, to initiate, consider and recommend to the Code Authority for transmittal to the Administrator further fair trade practice provisions to govern the members of this Product Group ; and to discharge the other powers and duties provided in this Supplement. (b) If the Administrator shall determine that any action of a Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and further consideration by such Code Authority or agency pending final action which shall not be effective unless the Administrator approves or unless he shall fail to dis- approve after thirty days' notice to him of intention to proceed with such action in its original or modified form. (c) Each trade or industrial associiition directly or indirectly participating in the selection or activities of the Administrative Committee shall (1) impose no inequitable restrictions on member- ship, and (2) submit to the Administrator true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. (d) In order that the Administrative Committee sball at all times be truly representative of the Product Group and in other respects comply witli the provisions of the Act, the Administrator may pre- scribe such hearings as he may deem proper; and thereafter if lie shall find that the Administrative Committee is not truly represent- ative or does not in other respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Administrative Coimnittee, 8 (4) All members of this Product Group shall be bound by the provisions of the Basic Code. For this purpose, all provisions of the Basic Code are hereby declared to be a part of this supplement. In case of any conflict between the provisions of this supplement and the provisions of the Basic Code, the provisions of the latter shall govern. (5) The Administrative Committee shall cause to be formulated accounting methods and principles of cost finding and/or estimating capable of use by all members of the Product Group. After such methods and principles have been formulated and approved by the Administrator, full details concerning them shall be made available to all members. Thereafter all members shall determine and /or estimate costs in accordance with such methods and principles.^ Article IV — Trade Practices In addition to the provisions of Section C of Article VI of the Basic Code, the following described acts shall constitute unfair practices : (1) Selling Below Cost. — (a) To sell the products of this Product Group at prices below cost, determined in the manner provided for in Article III, paragraph 5, of this supplement. (b) Nothing in this supplement shall prevent a member from selling at below cost as computed in accordance with the provisions of Article III, paragraph 5 hereof, providing that it is necessary to do so to meet a competitive price that is not in violation of this supplement. (c) When the Administrative Committee determines that an emergency exists in this Product Group and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the maintenance of the provisions of the Basic Code and/or this supplement, the Administrative Committee may cause to be de- termined the lowest reasonable cost of any of the products of this Product Group, 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, dur- ing the period of the emergency, it shall be an unfair trade practice for any member of the Product Group to sell or offer to sell any products of the Product Group 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 tlierefor than the lowest reason- able cost of such products. When it appears that conditions have changed, the Administrative Committee, upon its own initiative or upon the request of any inter- ested party, shall cause the determination to be reviewed.^ (2) G onnvvercldl Bribery. — To give, permit to be given, or offer to give, anything of value for the purpose of influencing or reward- ing the action of any employee, 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, wathout the knowl- edge of such employer, principal or party. This provision shall not * See paragraph, 2 of order approving this Code. 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 hereinabove defined. (3) Inaccurate labeling. — To list, brand, mark, or pack any prod- ucts of the Product Group in any manner which is intended to or does deceive or mislead purchasers in some material particular or the fail- ure to brand such products for the purpose or with the effect of mis- leading or deceiving purchasers in some material particular, with respect to such products (including but without limitation their brand, grade, quality, quantity, origin, size, substance, character, nature, finish, material content, or preparation.) (4) Imitation of trade- marks. — To indtate or copy a competitor's trade-mark, marking, trade name, or exclusive and established design which identifies the maker or vendor of the product, with the purpose or effect of misleading or deceiving any purchaser or prospective purchaser. (5) Inaccurate advertising. — To publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, or to in any way misrepre- sent any product (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. (6) Price GuaraMee. — To guarantee Product Group Products against advance or decline in price. This clause shall not apply to original equipment sales. (7) Guaranty. — To give any guaranty or warranty on any product of the Product Group except against defects in workmanship or material. (8) Return of vroducts. — The Administrative Committee shall im- mediately proceed to formulate a uniform policy covering the return of obsolete or unsalable products and present same for the approval of the Code Authority and the Administrator within thirty days from the effective date. Upon approval by the Code Authority and the Administrator, after such hearing as the Administrator may prescribe, such rules and regulations shall become binding as a part of this supplement. Until such policy has been so approved, no member shall accept the return of any such products for credit or exchange, except products returned because of breach of Warranty or as may be otherwise provided by applicable State Law. (9) Consignments. — To ship stocks of the products of this Prod- uct Group to distributors, contractors, manufacturers' agents, and/or otliers on consignment or under the '' Floating Credit or Ledger Balance " plan. All existing agreements regardin|j such shipments sliall be terminated within GO days from the date of ai)proval of this supplement, with the exception of existing contracts which, by their terms, cannot be terminated by that date, subject to the condition that copies of such contracts shall be filed with the Administrative Committee. (10) Replaoimg competitors^ stock. — To liquidate, purchase, or accept a competitor's product from any buyer. 10 (11) Interference with another'' s contracts. — To induce or attempt to induce the breach of an existing contract between a competitor and his customer or source of supply ; or to interfere with or obstruct the performance of such contractual duties or services. (12) Coeroion. — To require that the purchase of any goods be a prerequisite to the purchase of any Product Group goods. (13) Used or rehuilt froducts. — To sell or offer for sale rebuilt or used products which are not conspicuously designated as such. Such designation shall consist of the word " Rebuilt " or " Used " stenciled with 1V4'' block letters in red or another contrasting color on the visible side of the main leaf, and a band or strip of red or some other contrasting color of a minimum width of 4" circumscrib- ing the entire spring. (14) Discriimnation. — To prevent unfair methods of competition the Administrative Committee shall recommend to the Code Author- ity and the Administrator a fair and equitable classification of cus- tomers based upon services rendered. Upon the approval of the Code Authority and the Administrator, after such hearing as the Administrator may prescribe, such classification shall be adhered to by all members of the Product Group. No member of the Product Grroup shall sell his products to any customer at net realized prices lower than are offered to all other customers of the same classifica- tion for the same quantity, grade, quality, or style, provided, how- ever, that due allowance may be made for differences in transporta- tion costs. If any application of the foregoing classifications should work unjust hardship upon any member of the Product Group or any customer, such member of the Product Group or customer may ap- peal to the Administrative Committee and/or the Code Authority, wdiich shall have power to make or require such reclassification as justice demands. (15) Filing of price Ihts. — Since it has been the general recog- nized practice oi Class " B " and Class " C " members of the Product Group to sell their products on the basis of printed net price lists, or price lists with discount sheets and fixed terms of payment which are distributed to the trade, each Class " B " and Class " C " member shall file with the Administrative Committee a net price list or a price list and discount sheet, as the case may be, individually pre- pared by him, showing his current net prices, or price list and discounts, as the case may be, and terms of payment to the respective Classens of customers established pursuant to paragraph (14) of this Article IV, and the Administrative Committee shall immediately send copies thereof to all other Class " B " and Class " C " members. The Administrative Committee shall likewise make such filed prices available for inspection by customers or prospective customers of the classification or classifications affected. Revised schedules may be filed from time to time thereafter with the Administrative Com- mittee by any Class " B " or Class " C " member, to become effective upon a date specified by such member, which date shall be not less than 10 days after the filing of such revised prices with the Adminis- trative Committee and copies thereof with notice of the effective date specified shall be immediately sent to all other Class " B " and Class " C " members who thereupon may file, if they so desire, 11 revisions of their price lists and/or discount sheets, which, if filed previous to such cnective date, may take effect upon the date when the revised price list or discount sheet first filed sliall go into effect. The Administrative Committee shall likewise make sucli revised filed prices available for inspection by customers or prospective customers of the classification or classifications affected. No Class " B " or Class " C " member shall sell or offer to sell any product at prices lower or discounts greater or on more favorable terms of payment than the approved schedule of such member which is in effect and on file with tlie Administrative Committee as above provided.- (IG) Branch and Warehouse Stocks. — To make sales from ware- house stocks other than at the member's own factory unless the fol- lowing provisions prevail : (a) Except in cases of bona fide binding contracts entered into prior to the dat« of the approval of this Supplement, and in cases of Warehouse arrangements established prior to such date, no member shall warehouse products on premises owned by a customer in whole or in part, except in duly established public warehouses, whether or not the customer has an interest therein. (b) All existing agreements and arrangements regarding branch and warehouse stocks must be recorded and filed with the Adminis- trative Committee. (c) Members shall make a reasonable service charge for services rendered, based on the lowest reasonable cost of members maintain- ing such branch or warehouse stocks, the determination of such charge to be subject to the approval of the Administrator. No such charge need be made on sales from branch or warehouse stocks located in the same city or trading area as a comj>etitor factory. (d) On stocks which have been warehoused with a customer prior to the date of tke approval of this Supplement, the following rules shall prevail : A warehousing fee no greater than paid as of the date of approval of this Supplement may be paid to such customer only for the shelter- ing by such customer of stocks shipj>ed to the members' other cus- tomers and not otherwise. In connection with the making of any sale or shipment of such stocks to such other customers and in billing for such sales and making collections thereon, the member shall not employ the services or facilities of the customer with whom such stocks are warehoused. (17) Terms. — (a) To extend credit terms greater than 30 days net or net 15 prox. to manufacturers for original equipment purposes, (b) To extend credit terms gi-eater than 1% 10th prox. to all other customers. (18) Eng-lneering specifications. — To furnish engineering speci- fications as used for manufacture to customers except as contained in regularly published catalogs. (19) Freight AUoivance. — The Administrative Committee shall proceed immediately to prepare a schedule of freight allowances and submit same for the apj)roval of the Code Authority and the Admin- istrator, witliin thirty days from the effective date. Upon such ' See parugraph 2 of order approving' this Code. 12 approval of such schedule no member shall make any freight allow- ances to customers in excess of the provisions of such schedule. If any application of this paragraph should work any unjust hard- ship upon any member of the Product Group or upon any customer, such member or customer maj^ appeal to the Administrator, who shall have power to grant such relief as justice ma}' require. (20) Vohwie Allowance. — Xo member of the Product Group shall extend to any customer any rebate or bonus based u])on the total volume of purchases of such customer over a period of time, except as follows : Each member of the Product Group shall report to the Adminis- trative Committee a complete schedule of rebates or bonuses for volume allowed bv him or it during the year 1933. From such re- ports, the Administrative Committee shall select the hio;hest rebate and bonus rat-es and terms which represent customary selling practice in the Product Group in said year, and shall prepare a composite schedule of rebates and bonuses which embodies said selected rebate and bonus rates and terms. Said composite schedule shall be reported to the Code Authority and the Administrator, together with true copies of the individual schedules from which it was derived. After approval thereof by the Code Authority and the Administrator, no member of the Product Group shall extend to any customers any rebate or bonus at a rate higher or on terms more favorable than are provided in said composite schedule. If any application of this paragraph should work any unjust hard- ship upon any member of the Product Group or upon any customer, such member or customer may appeal to the Administrator, who shall have power to grant such relief as justice ma}" require. (21) Export. — The pro\T«ions of this supplement with regard to ; prices, discounts, deductions, allowances, extras, or methods and/or terms of sale apply to direct export sales and to sales in course of export (i.e., sales destined ultimately for export), and to sales of materials used in the manufacture of products for export, except as may be otherwise provided by the Administrative Committee, subject to the approval of the Administrator. Article V — General (1) Xo provision of this supplement shall be so applied- as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. (2) Such of the provisions of this Supplement as are not required to be included herein by the Act may, with the approval of the 'Administrator be modified or eliminated upon proposal by the Prod- uct Group or any member thereof if it appears that the public needs are not being served thereby and as changes in circumstances or experience may indicate. (3) It is contemplated that from time to time supplementary provisions to this Supplement or modifications thereof will be sub- mitted by the Administrative Committee through the Code Authority for approval to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the purposes of the Act. Upon approval by the Administrator after such notice 13 and hearing as he may prescribe, such supplementary provisions or modifications shall become binding as a part of this Supplement. (■1) As required b}- Section 10 (b) of Title I of the Act, the follow- ing provision is contained in this supplement : The President may from time to time cancel or modify any order, approval, license, rule or regulation issued under said Title. (5) No member of this Product Group shall be held to have con- sented to any modification of this supplement or to any provision or interpretation of the National Industrial Recovery Act if declared unconstitutional by the Supreme Court of the United States. (C) Violation by any member of this Product Group of any pro- vision of this Supplement is an act of unfair competition, and the offender shall be subject to the penalties imposed by the Act. (7) The term " Effective Date " as used herein means the 10th day after this Supplement shall have been approved by the President. Approved Code No. 105 — Supplement No. 3. Registry No. 1404^39. O UIIIVERSITY OF Ft ORIDA 3 1262 08855 5486