Approved Code No. 84 — Supplement No. 47 Registry No. 1149—30 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PIPE TOOL MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON AUGUST 23, 1934 WE DO OUR PART UNIV. OF FL Lit. DOCUMENTS PEPT. U.S. DEPC » UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1931 For sale by the Superintendent of Documents, Washington. D.C. Price 5 centa 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 Buildings Charleston, S.C.: Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. 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Approved Code No. 84 — Supplement No. 47 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PIPE TOOL MANUFACTURING INDUSTRY As Approved on August 23, 1934 ORDER Approving Supplementary Code of Fair Competition for the Pipe Tool 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 Fabri- cated 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 Pipe Tool Manu- facturing 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 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 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. Hugh S. Johnson. Administrator for Industrial Recovery. Approval recommended ; Barton W. Mtjbbat, Division Admdmstraior. Washington. D.( '.. August .!■:. !!>■>",. 82003° 104-J-105 :(4 (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 Pipe Tool 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., May 10, 1934, in accordance with the pro- visions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Pipe Tool Manufacturing Industry, being truly representa- tive of this division of the Fabricated Metal Products Manufactur- ing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of submitting 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 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 Supplementary Code. _ Article IV establishes a Supplementary Code Authority consist- ing of five (5) members to be elected at a meeting called by the Temporary Supplementary Code Authority, and gives the Adminis- trator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the administra- tion of the Supplementary Code. Article V provides for cost finding and accounting. Article VI provides for open price filing. Article VII provides means for preventing destructive price cutting. Article VIII sets forth the unfair trade practices of this Sup- plementary Code which have been especially designed to offset un- fair competition in this division of the Industry. Article IX sets forth that no provisions of this Supplementary Code relating to prices or terms of selling, shipping or marketing, shall apply to export trade. (2) Article X contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for the submission of proposed amendments to the Supplementary Code. Article XI provides against monopolies and monopolistic prac- tices. Article XII recognizes that price increases be limited to actual additional increases in the seller's costs. Article XIII states the effective date and duration of this Sup- plementary Code. FINDINGS The Acting 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 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 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 respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable restrictions 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. Respectfully, Hugh S. Johnson, Administrator. August 23, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE PIPE TOOL 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 Pipe Tool Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Compe- tition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved by the President of the United States on the 2nd day of November, 1933, and the provisions of this Supplementary Code shall be the Standards of Fair Competition of such Industry and shall be binding on every member thereof. Article II — Definitions Section 1. The term " Pipe Tool Manufacturing Industry ", here- after referred to as " the Industry ", is defined to mean the manu- facture for sale of Pipe Tools defined as Hand Appliances (except Pipe Wrenches) for fabricating pipe systems, such as Stocks and Dies, Pipe Cutters, Pipe Burring Reamers, Pipe Vises, Pipe Vise Stands, Pipe Vise Posts and other hand appliances used for the same purpose as the above listed appliances arc used for fabricating pipe systems. Section 2. The term " employee " as used herein, includes any and all persons engaged in the Industry however compensated, except a member of the Industry. Section 3. The term "employer " as used herein, includes anyone by whom any such employee is compensated or employed. Section 4. The term " member of the Industry " as used herein, in- cludes, but without limitation, any individual, partnership, associa- tion, corporation or other form of enterprise engaged in the Industry either as an employer or on his or its own behalf. Section 5. 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 Administrator for Industrial Recovery. Section 6. 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 2nd day of November, 1933. Section 7. The term " Supplementary Code Authority " as used herein, means the agency which is to administer this Supplementary Code as hereinafter provided. (4) Section 8. The term " Supplementary Code Committee " as used herein is defined to mean the Board of Directors of the Pipe Tool Manufacturers Association, authorized by that Association to present this Supplemental^ Code. Section 9. The term " Secretary " as used herein, is defined to mean the Secretary of the Supplementary Code Authority. Section 10. The term "Confidential Agent" as used herein, is defined to mean the impartial agency designated by the Supple- mentary Code Authority. Section 11. The term " Federation " as used herein, is defined to mean Fabricated Metal Products Federation or its successor. Section 12. The term "Association ", as used herein, is defined to mean the Pipe Tool Manufacturers Association or its successor. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Man- ufacturing 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. November 2, 1933, including Section 1 of said Article III, by which the provi- sions 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 in- corporated 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 of this Supplementary Code, the Supple- mentary Code Committee shall constitute a Temporary Supple- mentary Code Authority, until the Supplementary Code Authority is elected. There shall be constituted within the sixty (60) day period a Supplementary Code Authority consisting of five (5) members of the Industry, to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten (10) days' notice sent by registered mail to all members or the Industry, whose names may be ascertained after diligent search, who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the next succeeding annual meeting of the Association in October, 1935. Thereafter, members of the Supplementary Code Authority shall be elected at a meeting of the members of the Industry to be held at the time and place of each annual meeting of the Asso- ciation to serve until the following annual meeting, due notice of the time and place of the election to be sent to all members of the Industry whose names may be ascertained after diligent search. The members of the Supplementary Code Authority shall be elected in the following manner: (a) One (1) member who shall be a member of the. Industry by a majority vote of all known members of the Industry present in person, or by proxy, each member to have one vote. 6 (b) One (1) member of the Industry who is not a member of the Association may be elected by a majority vote of all non-members of the Association present, in person or by proxy, each member to have one vote. (c) Three (3) members by a fifty-one percent (51%) vote of members of the Association present, in person or by proxy, weighted on the basis of one vote for each member and one additional vote for each $5,000.00 of annual net sales in the previous calendar year reported to the Supplementary Code Authority or any agency designated by it provided, however, that no one member may cast more than twenty-five percent (25%) of the total number of votes cast. A vacancy in the membership of the Supplementary Code Au- thority shall be filled by a majority vote of the remaining mem- bers of the Supplementary Code Authority, provided, however, that the vacancy shall be filled from the class of membership in the Supplementary Code Authority in which such vacancy occurs. 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 expense. 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. Each trade association 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) shall use due diligence in submitting to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amendments 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 re- spects 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 Supplementally Code Authority is not truly representative or does not in other respects comply with the provi- sions of the Act, may require an appropriate modification of the Supplementary Code Authority. Section 4. It being found necessary in order to support the ad- ministration of this Supplementary Code and to maintain the stand- ards 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 neces- sary 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 con- tribution 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 contri- bution 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 Adminis- trator. Only members of the Industry complying with the Supple- mentary Code and contributing to the expenses of its administra- tion as hereinabove provided, unless duly exempted from making such contributions, shall be entitled to participate in the selection of members of the Supplementary Code Authority or to receive the benefits of any of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. The Supplementary Code Authorit}^ shall neither incur nor pay any obligation substantially in excess of the amount thereof as esti- mated in its approved budget; and shall in no event exceed the total amount contained in the aproved budget except upon the ap- proval of the Administrator, and no subsequent budget shall con- tain any deficiency items for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 5. The Supplementary Code Authority shall have all the powers and duties which shall be necessary and proper to en- able it to fully administer this Supplementary Code and to effectuate its purposes. Without limitation to the foregoing or any other powers or duties provided for in this Supplementary Code, the Sup- plementary Code Authority shall have the following further powers and duties: (a) To adopt By-Laws and Rules and Regulations for its pro- cedure. (b) To obtain from members of the Industry, through its Con- fidential Agent, such information and reports as required for the administration of this Supplementary Code. In addition to infor- mation required to be submitted to the Supplementary Code Author- ity, the members of the Industry, subject to this Supplementary Code, shall furnish such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act, to such Federal and State agencies as he may designate; provided that nothing in this Supplementary Code shall relieve any member of the Industry of any existing obligations to furnish reports to any Government agent. No individual report shall be disci to any other members of the Industry or any other party except to such other Governmental agencies as may he directed by the Administrator. (c) To use such trade associations and other agencies as it deems proper for carrying out 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 trade associations and agencies shall at all times be subject to and comply with the provisions hereof. 8 (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 or affect the members of this Industry. (e) 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 Indust^ for the purpose of formulating fair trade practices to govern the relationships between production and distribution employers under this Supplementary Code and under such others to the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other Codes. (f) To recommend to the Administrator further fair practices provisions to govern members of the Industry in their relations with each other or with other industries and to recommend to the Admin- istrator measures for industrial planning, including stabilization of employment. (g) To furnish from time to time to the Basic Code Authority des- ignated in said Basic Code such information as may be required to be furnished under the terms of the Basic Code. (h) To appoint a committee, with consumer and governmental representatives designated by the Administrator, to make a study of dimensional and quality, standards to be applied to the products manufactured by this Industry. Such committee shall report within at least six (6) months to the Supplementary Code Authority, and if the recommendations of said committee are approved by the Sup- plementary Code Authority and the Administrator, the standards thus established shall be adhered to by all members of this Industry in manufacturing the products of this Industry. Section 6. Pursuant to the provisions of the Act and subject to such rules and regulations as the Administrator may prescribe, the Supplementary Code Authority shall have the power to investigate all complaints filed with it by one member of the Industry against another member of the Industry. In the event of complaint being registered with the Supplementary Code Authority against any cor- porate member of the Industry, alleging a violation of this Supple- mentary Code, the Supplementary Code Authority may cause an in- vestigation to be made by a person mutually agreed upon by the Supplementary 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 Administrator. The Supplementary Code Authority may require the member complained against to file with such investigator, within such reasonable time after receipt of a copy of the complaint, if the Supplementary Code Authority shall determine, an answer to such complaint 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 required 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 9 to the Administrator for such procedure as he may deem advisable under the Act. Section 7. All individual and private information received by the Confidential Agent, appointee or agency, from reports, or as a result of investigation, shall be held in strict confidence and not disclosed, except in composite form, to any competitor or other per- sons, •without the permission of the member of the Industry involved. Section 8. To the extent permitted by the Act and subject to such rules and regulations as the Administrator may prescribe, any or all information furnished to the Supplementary Code Authority by any member of this Industry pursuant to the provisions of this Supple- mentary Code shall be subject to verification by an impartial agency agreed upon by the Supplementary Code Authority and the member of the Industry in question, and, failing such, agreement, such impar- tial agency shall be selected by the Administrator, which impartial agency may check so much of the pertinent books, accounts and records of such members of the Industry as may be required to verify the accuracy of the information so furnished. Section 9. 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 willful malfeasance or nonfeasance. Section 10. Every employer shall provide for the safety and health of employees during the hours and at the places of their employ- ment. Standards for safety and health shall bo submitted by the Supplementary Code Authority to the Administrator within three (3) months after the effective date of the Supplementary Code. Section 11. If the Administrator believes that any action of the Supplementary Code Authority or any agency thereof is 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. Further action by ^wch Supplementary Code Authority or agency regarding the matter complained of may be taken if approved by the Administrator, but shall not be taken if disapproved by the Administrator within thirty (30) days of notice to him of intention to proceed with such action. Artklk V — Cost Fijtdhtg and Accoustikg The Supplementary Code Authority shall cause to be Formulated methods of cost finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Administrator for review. If approved by the Administrator, full information concerning such methods shall be made available to all members of this Industry. Thereafter, each member of this Industry shall utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit the Supplementary Code 10 Authority, any agent thereof, or any member of this Industry to suggest uniform additions, percentages, or differentials or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or prices. Article VI — Open Price Filing Section 1. Each member of this Industry shall file with a con- fidential and disinterested agent of the Supplementary Code Authority or, if none, then with such an agent designated by the Administrator, identified lists of all his prices, discounts, rebates, allowances, and all other terms or conditions of sale, hereinafter in this Article referred to as " price terms ", which lists shall com- pletely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard products of this Industry as are sold or offered for sale by said member of this Industry and for such non- standard products of said member of this Industry as shall be desig- nated by the Supplementary Code Authority. Said price terms shall in the first instance be filed within 10 days after the date of approval of this Supplementary Code. Price terms and revised price terms shall become effective immediately upon receipt thereof by said Agent. Immediately upon receipt thereof, said Agent shall by telegraph or other equally prompt means notify said member of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall upon receipt be immediately and simul- taneously distributed to all members of this Industry and to all of their customers who have applied therefor and have offered to defray the cost actually incurred by the Supplementary Code Authority in the preparation and distribution thereof and be available for inspec- tion by any of their customers at the office of said Agent. Said lists or revisions or any part thereof shall not be made available to any person until released to all members of the Industry and their customers as aforesaid ; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid 10 day period after the approval of this Supplementary Code. The Sup- plementary Code Authority shall maintain a permanent file of all price terms filed as herein provided, and shall not destro}^ any part of such records except upon written consent of the Administrator. Upon request, the Supplementary Code Authority shall furnish to the Administrator or any duly designated Agent of the Adminis- trator copies of any such lists or revisions of price terms. Section 2. When any member of this Industry has filed any revision such member of this Industry shall not file a higher price within 48 hours. Section 3. No member of this Industry shall sell or offer to sell any products of the Industry, for which price terms have been filed pursuant to the provisions of this, Article, except in accordance with such price terms. Section 4. Each member of this Industry shall furnish the said Agent for distribution with such number of copies of his price list as the Supplemental Code Authority may prescribe. 11 Sic tion 5. No member of this Industry shall enter into any agree- ment, understanding, combination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any member of this In- dustry to change his price terms by the use of intimidation, coercion, or any other influence inconsistent with the maintenance of the free and open market which it is the purpose of this Article to create. Section 6. Nothing in Article VI of this Supplementary Code shall apply to sales to employees for their own use or between mem- bers of the Industry, provided that such sales shall not be below cost : and provided further that resale of such products by the pur- chasing members of the Industry shall be in accord with the provi- sions of this Supplementary Code. Article VII — Costs and Price Cutting Section 1. The standards of fair competition for this Industry with reference to pricing practices are declared to be as follows : (a) "Wilfully destructive price cutting is an unfair method of competition and is forbidden. Any member of this Industry or of any other Industry or the customers of either may at any time complain to the Supplementary Code Authority that any filed price constitutes unfair competition as destructive price cutting, imperil- ing small enterprises or tending toward monopoly or the impair- ment of code wages and working conditions. The Supplementary Code Authority shall within 5 clays afford an opportunity to the member filing the price to answer such complaint, and shall within 14 days make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of NKA which shall render a report and recommendation thereon to the Administrator. (b) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended that sound cost estimating methods should be used and that con- sideration should be given to costs in the determination of pricing policies. (c) When an emergency exists as to any given product, sale be- low the stated minimum price of such products, in violation of Section 2 hereof, is forbidden. Section 2. Emergency Provisions. — (a) If the Administrator, after investigation shall at any time find both (1) that an emergency has arisen within this Industry adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a speci- fied product within this Industry for a limited period is necessary to mitigate the conditions constituting such emergency and to effec- tuate the purposes of the Act; the Supplementary Code, Authority may cause an impartial agency to investigate costs and to recommend to the Administrator a determination of the stated minimum price of the products affected by the emergency and thereupon the Admin- istrator may proceed to determine such stated minimum price. (b) When the Administrator shall have determined sue]) stated minimum price for a specified product for a stated period, which 12 price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National In- dustrial Recovery Act, he shall publish such price. Thereafter, during such stated period, no member of this Industry shall sell such specified products at a net realized price below said stated minimum price and any such sale shall be deemed destructive price cutting. From time to time, the Supplementary Code Author- ity may recommend review or reconsideration or the Administrator may cause any determination hereunder to be reviewed or recon- sidered and appropriate action taken. Article VIII — Unfair Trade Practices In addition to the Unfair Trade Practices covered in Article V of the Basic Code, except Sections A, B and F thereof, which are made a part hereof the same as though repeated and set forth at length for all purposes of this Supplementary Code, the following- described acts shall constitute unfair practices. Any member of the Industry who shall use or employ any of such unfair practices shall be guilty of a violation of this Supplementary Code : Rule 1. Secret Rebates. — No member of the Industry shall secretly offer or make any payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in the form of money or otherwise, nor shall a member of the In- dustry secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. Rule 2. No member of the Industry shall withhold from, or insert in any invoice a false record wholly or in part of the trans- action represented on the face thereof. Rule 3. No member of the Industry shall permit the splitting of commissions or other compensation for the sale of any product of the Industrjr received by his employee or agent with the buyer, or his agent for the purpose of influencing a sale. Rule 4. No member of the Industry shall offer or give prizes, premiums or gifts to purchasers or their agents in connection with the sale of products of the Industry or as an inducement thereto in any manner which involves commercial bribery in any form. Rule 5. No member of the Industry shall give any allowance for used products of the Industry unless sold with the privilege of return. Nothing contained in this Rule shall be construed to prohibit a member of the Industry from allowing credit for or making free replacement of any products of his own manufacture because of errors in shipment or which are defective either as to material or workmanship. Rule 6. No member of the Industry shall give catalog allowances to distributors or those persons publishing for them. Nothing con- tained in this Rule shall be construed to prohibit legitimate and bona fide advertising allowances. Rule 7. No member of the Industry shall guarantee prices against decline beyond date of shipment nor accept orders at old prices after the effective date of any change in price. Rule 8. No member of the Industry shall accept orders for future delivery unless the terms of sale as to price, specifications and de- livery are definitely stated. Rule 9. No member of the Industry shall fail to brand the prod- ucts of the Industry manufactured by him with his trade-mark, trade name or some other mark of identification. Rule 10. No member of the Industry shall accept return of mer- chantable surplus goods except for merchandise credit only, such, credit to be subject to deductions for transportation costs, for any necessary refinishing, and a charge for handling. Rule 11. No member of the Industry shall grant any more favor- able terms of payment than 60 days net from date of shipment or 2% for cash, on the tenth day of the month for shipments mado during the preceding month. Rule 12. No member of the Industry shall ship goods on consign- ment except under circumstances to be defined by the Supplementary Code Authority and approved by the Administrator where peculiar circumstances of the trade or industry require the practice. Article IX — Export Trade No provision of this Supplementary Code relating to prices or terms of selling, shipping or marketing, shall apply to export trade or sales or shipments for export trade. " Export Trade " shall be as defined in the Export Trade Act adopted April 10, 1918. Article X — Modifications Section 1. As provided in Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. Section 2. This Supplementary Code, except as to provisions re- quired by the Act, may be modified and/or amended on the basis of experience or changes in circumstances, such modifications and/or amendments 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 as part of this Supplementary Code on the ap- proval by the President. Article XI — Monopoly 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 XII — Puke Increases Whereas the policy of the Act to increase real purchasing power will lx; 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 cost, should be delayed, and when made, such increases should, so far as possible, be limited to actual additional increases in the seller's costs. UNIVERSITY OF FLORIDA 14 3 1262 08852 5638 Article XIII — 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 and shall continue in effect until June 16, 1935, or the earliest date prior thereto on which the President shall, by proclamation, or the Congress shall, by joint resolution, declare that the emergency recognized by Section 1 of the National Industrial Recovery Act has ended. Approved Code No. 84 — Supplement No. 47. Registry No. 1149-30. O