Approved Code No. 84 — Supplement No. 43 Registry No. 1018 — 1 — 01 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE VITREOUS ENAMELED WARE MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON JULY 22, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. --..---- Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. y Chicago, 111. : Suite 1706, 201 North Wells Street. 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Approved Code No. 84 — Supplement No. 43 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE VITREOUS ENAMELED WARE MANUFACTURING INDUSTRY As Approved on July 22, 1934 ORDER Approving Supplementary Code of Fair Competition for the Vitreous Enameled Ware 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 1 of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the Vitreous Enameled Ware 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 President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise ; do hereby incorporate by reference said an- nexed report and do find that said Supplementary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplementary Code of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article V, Rule A, insofar as they prescribe a waiting period between the filing with the Supplementary Code Authority (or such agencj' as may be designated in the Supplementary Code) and the effective date of price lists, as originally filed and/or revised price lists or 75718°^— 820-134 34^—1 (1) revised terms and conditions of sale, be and they hereby are stayed pending my further Order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Barton W. Murray, D iv isio n- A dmin istra tor. Washington, D. C, July 22, 1034. REPORT TO THE PRESIDENT The President, The WMte House. Sir : This is a report on the Supplementary Code of Fair Compe- tition for the Vitreous Enameled Ware Manufacturing Industry a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., March 9, 1934, in ac- cordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Vitreous Enameled Ware Manufacturing Industry being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry has elected to avail itself of the option of submitting a Supple- mentary 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 Meal Coating Industry approved by you on the second day of November, 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Sup- plementary Code. Article III. This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of its Basic Code, as approved November 2, 1933, are the labor provisions of this Sup- plementary Code. Article IV establishes a Supplementary Code Authority consisting of five (5) members to be elected by the members of the Industry at a meeting called by the Temporary Supplementary Code Com- mittee, and gives the Administrator the authority to appoint one additional member without vote and provides machinery for obtain- ing statistics and the administration of the Supplementary Code. Article V sets forth the unfair trade practices of this Supple- mentary Code which has been especially designed to offset unfair competition in this division of the Industry. Article VI contains the mandatory provisions contained in Sec- tion 10 (b) and also provides for the submission of proposed amend- ments to the Supplementary Code. Article VII provides against monopolies and monopolistic practices. (3) Article VIII recognizes that price increases be limited to actual additional increases in the seller's costs. Article IX states the effective date and duration of this Supple- mentary Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter: I find that: (a) Said Supplementary Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zation of industry for the 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 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 Council is an industrial Council truly represen- tative of the aforesaid Industry; and that said Council imposes no inequitable restriction on admission to membership therein. (d) The Supplementary Code is not designed to and will not per- mit 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 ; provided, however, that the provisions of Rule "A " of Article V insofar as they prescribe a waiting period between the filing with the Supplementary Code Authority (or such agency as may be designated in the Supplementary Code) and the effective date of price lists, as originally filed and/or revised price lists or re- vised terms and conditions or sale, be and they hereby are stayed pending my further Order. Hugh S. Johnson, A dministrator. July 22, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE VITREOUS ENAMELED WARE MANUFACTURING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Vitreous Enameled Ware Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufactur- ing and Metal Finishing and Metal Coating Industry approved by the President of the United States on the second day of November 1933, and the provisions of this Supplementary Code shall be the standards of Fair Competition for such Industry and shall be binding upon every member thereof. Article II — Definitions The term " Vitreous Enameled Ware Manufacturing Industry " hereinafter referred to as the Industry, is defined to mean the manu- facture for sale of sheet metal utensils, coated with vitreous enamel and used in homes, hospitals, hotels and restaurants, and butcher shops or otherwise. The term " member of the Industry ", as used herein, includes, but without limitation, any individual, partnership, association, corpora- tion or other form of enterprise engaged in the Industry either as an employer or on his or its own behalf. The terms " President ", "Act ", and "Administrator ", as used herein, shall mean, respectively, the President of the United States, Title I of the National Industrial Recovery Act, and the Adminis- trator for Industrial Recovery under said Act. 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 on the second day of November 1933. The term " Basic Code Authority ", as used herein, is defined to mean the Executive Committee of the Fabricated Metal Products Federation. The term " Council ", as used herein, is defined to mean the Vit- reous Enameled Ware Council or its successor. The term " Supplementary Code Authority ", as used herein, means the agency which is to administer this Supplementary Code as hereinafter provided. The term " Duly Authorized Agent " or "Agent " of the Supple- mentary Code Authority, as used herein, is defined to mean the Com- (5) missioner of the Vitreous Enameled Ware Council, or his successor in office, or such other person as the Supplementary Code Authority may designate. Said Agent, in order to qualify as such, shall be entirely free from any interest in or connection with any company engaged in the manufacture or sale of the products of the Industry. The term " Federation ", as used herein, is defined to mean the Fabricated Metal Products Federation or its successor. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, and without limitation the wage, hour, and labor provisions in Article III of its Basic Code as approved by the President Novem- ber 2, 1933, including Section 1 of said Article III by which the provisions of Subsections (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 Duly Authorized Agent shall consti- tute a temporary Supplementary Code Authority until the Supple- mentary Code Authority, consisting of five (5) members, is elected by the members of the Industry assenting to this Supplementary Code, as hereinafter provided, at a meeting called by the temporary Supplementary Code Authority, upon ten (10) days' notice sent by registered mail to all members of the Industry, whose names may be ascertained after a diligent search, who may vote either in person or by proxy. The members of the Supplementary Code Authority shall serve for a period of one year from the date of their election and subsequent elections shall be on the same basis as above provided. Immediately after the annual election of said Supplementary Code Authority, the members thereof shall appoint a Duly Authorized Agent to administer the provisions of this Supplementary Code. The members of the Supplementary Code Authority shall be elected in the following manner: One (1) member, who shall be a member of the Industry, not a member of the Council (provided there are such members of the Industry who are not members of the Council), to be elected by a majority vote of the qualified members of the Industry who are not members of the Council, present in person or by proxy, each member to have one vote. Such one member to be nominated by the members of the Industry who are not members of the Council. Four (4) members, who are members of the Industry and members of the Council, to be elected by a majority vote of the qualified members of the Industry who are members of the Council present in person or by proxy, each member to have one vote. Such four mem- bers to be nominated by the members of the Council. A vacancy in the membership of the Supplementary Code Author- ity shall be filled by a majority vote of the remaining members of the Supplementary Code Authority; provided, however, that the member of the Supplementary Code Authority who is chosen to fill such vacancy shall be elected from the class of membership in which the vacancy has occurred. In addition thereto, the Administrator may appoint a member of the Supplementary Code Authority who, without vote, shall serve without expense to the Industry unless the Supplementary Code Authority agrees to pay such expenses. The representative who may be appointed by the Administrator shall be given reasonable notice of and may sit at all meetings of the Supplementary Code Authority. Section 2. The Trade Associations directly or indirectly partici- pating in the selection or activities of the Supplementary Code Au- thority shall (1) impose no inequitable restrictions on admission to membership and (2) submit to the Administrator true copies of their 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. 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 deem proper; and thereafter if he shall find that the Supplementary Code Authority or its Agent is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification of selection of the Supplementary Code Authority. Section 4. It being found necessary in order to support the administration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Supplementary Code Authority is authorized : (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes, and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Supplementary Code ; (b) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem necessary (1) an itemized budget of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the Industry ; (c) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and obtain equitable contribution as above set forth by all members of the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. Each member of the Industry shall pay his or its equitable con- tribution to the expenses of the maintenance of the Supplementary Code Authority, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Administrator. Only members of the Industry complying with the Supplementary Code and contributing to the expenses of its administration as here- inabove provided, shall be entitled to participate in the selection of members of the Supplementary Code Authority or to receive the 8 benefits of any of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. The Supplementary Code Authority shall neither incur nor pay any obligation in excess of the amount thereof as estimated in its approved budget, except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item for expendi- tures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 5. The Supplementary Code Authority, through its Duly Authorized Agent, is hereby constituted the agency to administer the provisions of this Supplementary Code and shall have all of the powers which shall be necessary and proper to enable it to fully administer this Supplementary Code and to effectuate its purposes. The Supplementary Code Authority, through its Duly Authorized Agent, shall have the following further powers and duties : (a) To insure the execution of the provisions of the Supple- mentary Code and provide for the compliance of the Industry with the proAnsions of the Act. (b) To adopt By-Laws and Rules and Regulations for its pro- cedure and for the administration of the Supplementary Code. (c) To obtain from members of the Industry such information and reports as are required for the administration of the Supple- mentary Code. In addition to information required to be submitted to the Supplementary Code Authority, members of the Industry, subject to this Supplementary Code, shall furnish such statistical information as the Administrator may deem necessary for the pur- poses recited in Section 3 (a) of the Act to such Federal and State agencies as he may designate; provided that nothing in this Sup- plementary Code shall relieve any member of the Industry of any existing obligations to furnish reports to any Government agency. No individual report shall be disclosed to any other member of the Industry or any other party except to such other Governmental agencies as may be directed by the Administrator. (d) To use such 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 Supplementary Code and that such agencies shall at all times be subject to and comply with the provi- sions hereof. (e) To make recommendations to the Administrator for the co- ordination of the administration of this Supplementary Code with such other codes, if any, as may be related to the Industry. (f ) To appoint a Trade Practice Committee which 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 relationships between production and distribution employers under this code and under such other codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this code and such other codes. (g) To furnish from time to time to the Basic Code Authority designated in said Basic Code, such information as may be required to be furnished under the terms of the Basic Code. (h) To appoint, within one month after the effective date of this Supplementary Code, a committee so constituted as to give due con- sumer and Governmental representation, to make a study, with a view to the establishment of classifications and standards of quality and the labeling of products of the Industry wherever such standards are deemed feasible. The findings and recommendations of this committee shall be submitted to the Administrator, within one year after the effective date of this Supplementary Code, and after such hearings as he may designate, and upon approval by him shall be made a part of this Supplementary Code and be binding upon every member. Section 6. To the extent permitted by the Act and pursuant to such rules and regulations as the Administrator may prescribe any and all information furnished to the Supplementary Code Authority by any members of this Industry pursuant to the provisions of this Supplementary Code shall be subject to verification by an Impartial Agent appointed by the Supplementary Code Authority, and each member of the Industry shall furnish to such Impartial Agent so much of his pertinent books, accounts and records as may be re- quired to verify the accuracy of the information submitted. Section 7. Every employer shall provide for the safety and health of employees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the Supple- mentary Code Authority to the Administrator within six (6) months after the effective date of this Supplementary Code. Section 8. Complaints made by members of the Industry to the Agent of the Supplementary Code Authority, of alleged violations of any of the provisions of this Supplementary Code, shall be made in writing. In the event of a complaint being registered against any corporate member of the Industry, alleging a violation of this Supplementary Code, the Supplementary Code Authority may cause an investiga- tion to be made by a person mutually agreed upon by the Supple- mentary Code Authority and the member of the Industry against whom the complaint is filed, or, if they are unable to agree within a reasonable time, by a disinterested person appointed by the Ad- ministrator upon request by the Supplementary Code Authority. The Supplementary Code Authority may require the member com- plained against to file with such investigator, within such reason- able time after receipt of a copy of the complaint, as the Supple- mentary Code Authority shall determine, an answer to such com- plaint accompanied by supporting data. Both answer and data shall be verified by affidavit. The investigator shall examine so much of the pertinent books and records of such member as may be re- quired to verify the statements contained in said answer and/or the accuracy of the data supporting such statements. If the matter can- not thereafter be satisfactorily adjusted within the Industry, the facts may be placed before the Basic Code Authority to be presented to the Administrator for such procedure as he may deem advisable under the Act. Any representative appointed by the Agent of the Supplementary Code to make any investigation, shall be a disinterested person or persons, who shall be entirely free from any interest in or connection with any company engaged in the manufacture or sale of the prod- ucts of the Industry. 10 Section 9. All individual and private information received by the Agent of the Supplementary Code Authority or his representative from reports, or as a result of investigation shall be held in strict confidence and not disclosed to any competitor or other persons out- side the Agent's office, without the permission of the members of the Industry involved, except as provided in Section 6 of this Article. Provided, however, that such information may be disclosed to any authorized Governmental agency, and provided, further, that in- formation pertaining to the reporting of prices, terms, and condi- tions may be disclosed to effectuate the purpose of this Supple- mentary Code. Section 10. Nothing contained in this Supplemental Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose, either as among themselves, or in connection with the Agent of the Supplementary Code Authority. No member of the Supplementary Code Authority shall 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 the Agent of the Supplementary Code Authority be liable- in any manner to anyone for any act of any member of the Supplementary Code Authority or any other officer, agent, or employee thereof. No member of the Supplementary Code Authority, nor the Agent of the Supplementary Code Authority, exercising reasonable diligence in the conduct of their duties hereunder, shall be liable to anyone for any action or omission to act under this Supplementary Code except for his own willful malfeasance or non-feasance. Section 11. If the Administrator shall determine that any action of the 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 Admin- istrator approves or unless he shall fail to disapprove after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form. Article V — Rules of Fair Competition in Manufacturing and Marketing (Superseding all Trade Practices set forth in Article V of the Basic Code) Any member of the Industry who shall directly or indirectly through any officer, employee, agent, or representative, fail to com- ply with any of the following rules of Fair Competition in Manu- facturing and Marketing shall be deemed to have violated this Supplementary Code. Rule A. No products of the Industry, in whole or in part, shall be sold or exchanged or offered for sale or exchange at prices less than the seller's cost of such products; such cost to be based on a formula which shall be at least as detailed and complete as the for- mula to be prepared by the Supplementary Code Authority and approved by the Administrator. Provided, however, that if any member of the Industry desires to sell below his cost in order to meet competitive prices on articles of similar style, grade and/or specific 11 cation filed in accordance with the provisions of this Section, he shall first report to the agent of the Supplementary Code Authority and in such report cite the competition that would cause him to take such action. This revised price and/or condition of sale shall become effective immediately upon receipt thereof by said agent. Immedi- ately upon receipt thereof said agent shall, by telegraph or by some other equally prompt means, notify said member of the time of such receipt. When the Supplementary Code Authority determines that an emergency exists in this Industry 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 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 emergency, it shall be an unfair trade practice for any member of the 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 and conditions of sale that the buyer will pay less therefor than the lowest reasonable cost of such products. When it appears that conditions have changed, the Supplementary Code Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. All members of the Industry shall, within ten (10) days after the effective date of this Supplementary Code publish for the benefit of all wholesalers and manufacturers of enameled ware and file with the Agent of the Supplementary Code Authority, net price lists and/or price lists and discount sheets, including terms, and other conditions at which they will sell the products of the Industry to the recognized wholesale distributors. 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 Agent of the Supplementary Code Authority by any member of the Indus- try, to become effective ten (10) days after actual receipt by the Agent of the Supplementary Code Authority. Copies of such origi- nal price lists and revised lists and/or discount sheets and/or all other conditions of sale, with notice of the effective date thereof, shall be immediately sent to all members of the Industry, and shall be available to all interested parties; and any member of the In- dustry may file, if he so desires, revisions of his price list and/or discount sheets and/or conditions of sale, which shall become effec- tive at the date when the revised list first filed becomes effective. In the event that the Supplementary Code Authority shall find that competitive conditions in the sale of the products of the In- dustry to any one or more of the various classes of trade, have resulted in improper price cutting or other unfair competitive prac- tices, it may, with the approval of the Administrator, require the filing of net price lists and/or discount sheets by all members of the Industry, setting forth the prices, terms, bases of delivery and other conditions at which they will sell the products of the Industry to such other class or classes of trade. The manner and effect of such 12 filing shall be the same in all respects as set forth in the two (2) preceding paragraphs. When filing net price lists and/or price lists and discount sheets, as set forth in this Rule A, each member of the Industry shall file with the Agent of the Supplementary Code Authority the number of such price lists and/or price lists and discount sheets required by him for the purpose set forth in this Rule. The sale of dropped lines, or inventories which must be con- verted into cash to meet emergency needs may be made by any mem- ber of the Industry upon two weeks' notice of intention to do so, in writing, to the Supplementary Code Authority setting forth the facts and the reasons for such proposed disposal. If any member of the Industry shall, within six months after any such disposal, manufacture any product which he has classified as a dropped line, the emergency sale of such product below cost shall be deemed prima facie to have been in violation of this Supplementary Code. No member of the Industry shall sell or offer to sell directly by any means whatsoever, any products of the Industry, covered by provisions of this Article V, at a price or at discounts or on other conditions of sale more favorable than those provided in his own current net price lists or price lists and discount sheets. 1 Rule B. Withholding from or inserting in any invoice a false record, wholly or in part, of the transaction represented on the face thereof, and the payment or allowance of secret rebates, illegitimate credits or unearned cash discounts, (whether in the form of money or otherwise), are unfair trade practices. Rule C. To defame or disparage a competitor directly or in- directly, 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, is an unfair trade practice. Rule D. To imitate or simulate the trade mark, trade name, package, wrapper, or label of a competitor's product to such a de- gree as to deceive or have a tendency to deceive customers, is an unfair trade practice. Rule E. To give, permit to be given, or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent or representative of another in rela- tion 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, is an unfair trade practice. Provided, however, that nothing in this Rule contained shall be so construed as to prohibit free and general distribution of articles commonly used for advertising except as far as such articles are actually used for commercial bribery as hereinabove defined. Rule F. The false marking, branding or labeling of any product of the Industry which has the tendency to mislead or deceive cus- tomers, prospective customers or competitors, whether as to the grade, quality, quantity, substance, character, nature, origin, size, finish or preparation of any product of the Industry, is an unfair trade practice. Rule G. The making or causing or knowingly permitting to be made or published any false, materially inaccurate or deceptive 1 See paragraph 2 of order approving this Code. 13 statement, by way of advertisement or otherwise, whether concern- ing the grade, quality, 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 otherwise, having the tendency or capacity to mislead or de- ceive customers or prospective customers, is an unfair trade practice. Rule H. Inducing, or attempting to induce, the breach of any contract between a competitor and his customer, or accepting the repudiation of contracts, or the sale of any of the products of the Industry with the privilege of return except for defects, are unfair trade practices. Rule I. Shipping goods on consignment ?!s an unfair trade prac- tice. — The term " consignment ", as used in this section, means the supplying of goods to a consignee for sale by the consignee under any contract, agreement or understanding whereby title to the goods remains in the consignor until such time as they are withdrawn from the consigned stock and/or sold by the consignee, and under which no liability for the purchase price of said goods arises on the part of the consignee until such withdrawal and/or sale by him. Rule J. No member of the Industry shall grant to any purchaser more favorable terms than two (2) percent for cash payment within ten (10) days from date of invoice, thirty (30) days net and date of invoice shall be the date of shipment with the following exceptions : 1. In cases where numerous invoices are rendered to any customer during a month by any member of the Industry, such invoices dated from the 1st to the 15th of the month inclusive may be discounted on the 25th of the same month and invoices dated from the 16th to the end of the month inclusive may be discounted on the 10th of the next following month. 2. Terms to department stores shall not be more favorable than two (2) percent ten (10) days E.O.M. 3. Terms to the retail trade (other than department stores) shall not be more favorable than two (2) percent ten (10) days, net sixty (60) days. 4. Enameled roasters shipped and billed direct to the retail trade after August 1st of each year may be accorded November 1st dating of the same year. Enameled roasters shipped and billed direct to jobbers after July 1st of each year may be accorded October 1st dating of the same year. In no case may the provisions of this Rule be varied by any allow- ance for anticipated payment. Rule K. The sale of kiln run ware is an unfair trade practice. — The term " kiln run ware ", as used herein, is defined to mean Vitreous Enameled Ware as it is removed from the kiln after burn- ing, without such inspection as will determine which articles are of first grade quality and which are of second grade quality, the result- ing mixture of first and second grade articles being packed and sold as " kiln run ware." Rule L. In order that the consuming public may be properly in- formed, the sale of Vitreous Enameled Ware manufactured after the effective date of this Supplementary Code, as " seconds ", without so labeling it, is an unfair trade practice. Such labeling may include a brand name and the name of the manufacturer, but must include the word " second " in bold-face type. 14 Rule M. The giving of free goods except as samples, or the grant- ing of advertising or catalog allowances in connection with the sale of Vitreous Enameled Ware, is an unfair trade practice. Provided, however, that the restrictions of this Section shall not apply to the furnishing of electrotypes, or stock catalog pages or other advertising matter. Rule N. Because of the fact that the leasing, by manufacturers, of space in department stores and other retail mercantile establish- ments selling the products of this Industry has been used as a means of granting rebates and price concessions to favored customers and has worked to the detriment of small manufacturers, such leasing of space in connection with the sale of the products of the Industry, is declared to be an unfair trade practice. Article VI — Modifications Section 1. This Supplementary Code and all the provisions thereof, are expressly made subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. Section 2. This Supplementary Cod