Approved Code No. 105 — Supplement No. 10 Registry No. 1404 — 45 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RADIATOR MANUFACTURING INDUSTRY (A Product Group of the Automotive Parts and Equipment Manufacturing Industry) AS APPROVED ON FEBRUARY 1, 1935 A~C WE DO OUR PART 3- _7.~ ! UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1935 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. ¥. : Chamber of Commerce Building. Charleston, S. C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. 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Approved Code No. 105 — Supplement No. 10 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RADIATOR MANUFACTURING INDUSTRY As Approved on February 1, 1935 ORDER Approving Supplementary Code of Fair Competition for the Radiator Manufacturing Industry a product group of the automotive parts and equipment manufacturing industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Supple- mentary Code of Fair Competition for the Radiator Manufacturing Industry, a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and hearings having been duly held thereon and the annexed report on said Supplementary Code, con- taining findings with respect thereto, having been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to author- ity vested in it by Executive Orders of the President, including Executive Order No. 6859, and otherwise, does hereby incorporate by reference said annexed report and does find that said Supple- mentary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and does hereby order that said Supplementary Code of Fair Competition be and it is hereby approved. National Industrial Recovery Board, By W. A. Harriman, Administrative Officer. Approval recommended : Barton W. Murray, Div isio n A d minis trator. "Washington, D. C, February 1, 1935. 112855° 1573-16 35 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on a Supplementary Code of Fair Competi- tion for the Radiator Manufacturing Industry, a Product Group of the Automotive Parts and Equipment Manufacturing Industry. A proposed Code was submitted on March 1, 1934 by the Code Author- ity Committee of the Automotive Parts and Equipment Manufac- turing Industry, on behalf of the Automotive Radiator Institute which represents approximately 95% of the total volume of sales and 72% of the number of members of the Industry. A Public Hearing on the proposed Supplementary Code was con- ducted in Washington on June 26, 1934 in accordance with the provi- sions of the National Industrial Recovery Act. It was later revised and approved in its present form. This Supplementary Code is de- signed primarily to put into legal effect certain Fair Trade Practice Rules which long have been recognized in the Industry, but which have been without binding legal effect. The labor provisions of this Supplementary Code are those of the Basic Automotive Parts and Equipment Manufacturing Industry Code. The purpose of the Sup- plementary Code is stated in Article I and Article II is devoted to definitions. An Administrative Committee to administer the Supplementary Code is set up in Article III. This Committee is composed of the Executive Committee of the Automotive Radiator Institute, but one additional member may in the discretion of the National Industrial Recovery Board be added to represent the non-members of the Institute who comply with the Code. Fair Trade Practice Rules are set forth in Article IV. FINDINGS The Deputy Administrator in his final report to the National In- dustrial Recovery Board on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter : The National Industrial Recovery Board finds 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 purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanction and super- vision, by eliminating unfair competitive practices, by promoting the (2) 3 fullest possible utilization of the present productive capacity of in- dustries, by avoiding undue restriction of production, (except as may be temporarily required), by increasing the consumption of indus- trial 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 the National Industrial Recovery Board 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, includ- ing 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 industrial association im- poses 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, the National Industrial Recovery Board has approved this Supplementary Code. For the National Industrial Recovery Board : W. A. Hakriman, Administrative Officer. February 1, 1935. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RADIATOR MANUFACTURING INDUSTRY A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFAC- TURING INDUSTRY Article I — Purpose Pursuant to the provisions of Article II of the Code of Fair Com- petition for the Automotive Parts and Equipment Manufacturing Industry, duly approved by the President on November 8, 1933, the following provisions covering fair trade practices and the adminis- tration thereof are hereby established as the standards of Fair Com- petition for the Radiator Manufacturing Industry, which has been organized into an administrative unit as a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and shall be binding upon every member of said Product Group. Article II — Definitions The term " Product Group " as used herein is denned to mean the production and/or manufacture for sale of internal combustion engine cooling radiators or parts thereof for original equipment or replace- ment, excepting, however, the production and/or manufacture of such articles when produced or manufactured by a manufacturer for use exclusively in his own finished product, and provided always that this definition shall not include any products hereinabove described or parts thereof or therefor not designed for and used mainly as automotive original equipment, replacement parts and/or accessories and which are included within the scope of the definition of any other industry as defined in any approved Code of Fair Competition. The term " Member " or " Member 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 and/or the sale as a manufacturer of the products of the Product Group (hereinafter termed " Products "), 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, internal combustion engines or other products for original equipment and for service replacement thereon. The term " Class ' 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 radia- tors or parts thereof for motor vehicles, internal combustion engines or other products. (4) The term "Institute' 1 as used herein is defined to mean the Auto- motive Radiator Institute, a trade association at present having its headquarters' 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 Man- ufacturing Industry, as approved by the President on November 8, 1933, and as amended. 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 is hereby desig- nated the Administrative Committee to assist the Code Authority and the National Industrial Recovery Board 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 National Industrial Recovery Board, be added to represent the non- members of the Institute who comply with this Supplementary Code, such additional member to be selected by such non-members of the Institute b}^ a fair method approved by the National Industrial Recovery Board. (b) In addition to the membership as above provided, there may be one additional member, without vote, to be appointed by the Na- tional Industrial Recovery Board, to serve without expense to the Product Group for such term as the National Industrial Recovery Board may specify. (2) (a) It being found necessary, in order to support the admin- istration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Administrative Committee is authorized : (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 this Supplementary Code; (2) To submit to the National Industrial Recovery Board for its approval, subject to such notice and opportunity to be heard as it may deem necessary, (a) an itemized budget of its estimated expenses for the foregoing pur- poses, 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 National Industrial Recovery Board, 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 Admin- istrative Committee, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the National Industrial Recovery Board. Only members of the Product Group complying with this Supplementary Code and contributing to the expenses of its administration as hereinabove provided, (unless duly exempted from making such contribution), shall be entitled to par- ticipate in the selection of members of the Administrative Com- mittee 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. (c) The Administrative Committee 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 approved budget, except upon approval of the National Industrial Recovery Board ; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the National Industrial Recovery Board shall have so approved. (3) (a) The Administrative Committee shall, subject to the ap- proval of the Code Authority and the National Industrial Recovery Board, 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 Supplementary Code; to cooperate with the National Industrial Recovery Board under such rules and regulations as may be prescribed by it in regulating the use of any N. R. A. insignia, and in hearing and adjusting com- plaints; to initiate, consider, and recommend to the Code Authority for transmittal to the National Industrial Recovery Board further fair trade practice provisions to govern the members of this Product Group. (b) If the National Industrial Recovery Board shall determine that any action of a Code Authority and/or the Administrative Committee or any agency thereof may be unfair or unjust or contrary to the public interest, the National Industrial Recovery Board may require that such action be suspended to afford an opportunity for in- vestigation of the merits of such action and further consideration by such Code Authority and/or the Administrative Committee or agency pending final action which shall not be effective unless the National Industrial Recovery Board approves or unless it shall fail to dis- approve after thirty days' notice to it of intention to proceed with such action in its original or modified form. (c) Each trade or industrial association directly or indirectly participating in the selection of activities of the Administrative Com- mittee shall (1) impose no inequitable restrictions on membership, and (2) submit to the National Industrial Recovery Board true copies of its articles of association, by-laws, regulations, and any amend- ments when made thereto, together with such other information as to membership, organization, and activities as the National Industrial Recoverv Board may deem necessary to effectuate the purposes of the Act." (d) In order that the Administrative Committee shall at all times be truly representative of the Product Group and in other respects comply with the provisions <,f the Act, the National Industrial Re- covery Board may prescribe such hearings as it may deem proper; and thereafter if it shall find that the Administrative Committee is not truly representative or does not in other respects comply with the pro- visions of the Act, may require an appropriate modification in the method of selection of the Administrative Committee. (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 Supplementary Code. In case of any conflict between the provisions of this Supple- mentary Code and the provisions of the Basic Code, the provisions of the latter shall govern. As required by Section 7 (a) of Title I of the National Industrial Recovery Act, it is hereby provided: (1) That employees shall have the right to organize and bargain collec- tively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self -organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment shall be required as a con- dition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choos- ing; and (3) that employers shall comply with the maximum hours of labor, minimum rates of pay and other conditions of employment, approved or prescribed by the President. (5) The Administrative Committee shall cause to be formulated methods of cost finding and accounting capable of use by all mem- bers of the Product Group, and shall submit such methods to the National Industrial Recovery Board for review. If approved by the National Industrial Recovery Board, full information concerning such methods shall be made available to all members of the Product Group. Thereafter, each member of the Product Group shall utilize such methods to the extent found practicable. Nothing herein con- tained shall be construed to permit the Administrative Committee, any agent thereof, or any member of the Product Group 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. (6) The Administrative Committee shall be empowered to obtain from members of the industry such information and reports as are required for the administration of this Supplementary Code. In. addition to information required to be submitted to the Code Au- thority, members of the industry subject to this Supplementary Code shall furnish such statistical information as the National Industrial Recovery Board may deem necessary for the purposes recited in. Section 3 (a) of the Act to such Federal and State agencies as it 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 agencj^. 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 di- rected by the National Industrial Recovery Board. Article IV — Trade Practices In addition to the provisions of Title C of Article VI of the Basic Code, the following described acts shall constitute unfair practices and acts of unfair competition : (1) Costs and Price Cutting. — (a) Wilfully destructive price cut- ting is an unfair method of competition and is forbidden. Any member of the Product Group or of any other industry or the custom- ers of either may at any time complain to the Administrative Com- mittee that any filed and/or offered price constitutes unfair compe- tition as destructive price cutting, imperiling small enterprises or tending toward monopoly or the impairment of code wages and work- ing conditions. The Administrative Committee shall within 5 days afford an opportunity to the member filing and/or offering 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 the National Recovery Administration which shall render a report and recommendation thereon to the National Industrial Recovery Board. (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 consider- ation should be given to costs in the determination of pricing policies. (c) When an emergency exists as to any given product sale below the stated minimum price of such product, in violation of the provisions of paragraphs (d) and (e) hereof, is forbidden. (d) If the National Industrial Recovery Board, after investiga- tion shall at any time find both (1) that an emergency has arisen within the Product Group 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 of the Product Group for a limited period is necessary to mitigate the conditions constituting such emergency and to effec- tuate the purposes of the Act, the Administrative Committee may cause an impartial agency to investigate costs and to recommend to the National Industrial Recovery Board a determination of the stated minimum price of the product affected by the emergency and thereupon the National Industrial Recovery Board may proceed to determine such stated minimum price. (e) When the National Industrial Recovery Board shall have de- termined such stated minimum price for a specified product for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Recovery Act, it shall publish such price. Thereafter, during such stated period, no member of the Product Group 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 Administrative Committee may recommend review or reconsideration or the National Industrial Recovery Board may cause any determinations hereunder to be reviewed or reconsidered and appropriate action taken. 9 (2) Commercial Bribery. — 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 relation to the business of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. Commercial brib- ery provisions shall not be construed to prohibit free and general dis- tribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as herein- above 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 failure to brand such products for the purpose or with the effect of misleading or deceiving purchasers in some material particular with respect to such products (including, but without limitation, their brand, grade, quality, quantity, origin, size, substance, charac- ter, nature, finish, material content, or preparation). (4) Imitation of Trade-Marks. — To imitate or copy a competitor's trade-mark, marking, or trade name 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 in any material way to misrepresent 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) Export Business. — The provisions of this Supplementary Code with regard to prices, discounts, deductions, allowances, extras, com- missions, and/or terms of sales, are not to apply to direct export sales or to sales in course of export (i. e., sales destined ultimately for export). "Export Trade" shall be as defined in accordance with the Export Trade Act adopted April 10, 1918. (7) Conforming to Samples. — To ship or deliver products that do not conform to the sample submitted or representations made with respect thereto prior to securing the order, without the consent of the purchaser to such substitutions. SECTION A (FOR CLASS "a" MEMBERS ONLY) (Paragraphs 8 to 15 inclusive) (8) Tool and Die Costs. — To sell the products of Class "A" mem- bers without requiring the customer to pay the cost of any tools, patterns, dies, jigs and/or fixtures which it may be necessary to build for the purpose of producing the particular radiator sold to said customer. Said tools shall be paid for under one of the following conditions : (a) In cash upon the placing of the order, or upon completion of the tools. (b) In partial payments distributed over a period of not more than six months. 10 (c) By an amount added to the cost of each radiator, which shall equal the total cost of said tools divided by the total number of radiators of approximately like kind used by the purchaser over the period of twelve months immediately preceding the placing of the order. In such event said item shall be included in the selling price or billed separately and any balance remaining unpaid at the completion of the order, or of the model as a current production type, shall be immediately due and payable in cash. (d) By prorating the purchase price of said tools over the actual quantity used in the purchasing specifications, any unpaid balance to become due and payable as provided in Subdivision (c) of this paragraph. As used herein, the term " Cost " shall mean the cost of said tools, patterns, dies, jigs, and/or said fixtures as determined by the meth- ods formulated in accordance with the provisions of Article III, paragraph 5 of this Supplementary Code. (9) Terms. — To extend credit terms more favorable than net 30th proximo. (10) Defective Material. — For Class "A" members to allow credit for defective material outside the scope of the uniform guaranty which is as follows : " Products are not guaranteed beyond six months from date of shipment from such member's plant and then only against defective material or workmanship. Products which are alleged to be defec- tive must be returned for inspection, transportation charges pre- paid. If upon inspection such products are found to be defective in material or workmanship, they may be repaired or replaced by products of equivalent weight and capacity and the prepaid trans- portation charges refunded. This guaranty shall not cover charges for consequential labor or damage." (11) Interference with Another's Contracts. — To attempt to in- duce the breach of an existing contract between a competitor and his customer or source of supply; or to interfer with or obstruct the performance of such contractual duties or services. (12) Offering Product of Lesser Capacity. — To offer for sale a product of lesser cooling capacity than that prescribed in buyer's specifications without stating in writing the fact that such product so offered is of lesser cooling capacity. (13) Responsibility for Cooling Capacity. — To assume respon- sibility for suitable cooling capacity as prescribed in buyer's specifi- cations beyond that involved in the furnishing to and acceptance by buyer of samples or initial shipment of products. SECTION B (FOR CLASS "fi" MEMBERS ONLY) (Paragraphs 14 to 25, inclusive) (14) Price guaranty. — To guarantee Product Group products against advance or decline in price. (15) Customers'* False Advertising. — To sell to outlets who persist in publishing advertising, whether printed, radio, _ display or of any other nature, which is misleading or inaccurate in any material particular, or who in any way misrepresent any goods (including, but without limitation, its use, trade-mark, grade, quality, quantity, II origin, size, substance, character, nature, finish, material content, or preparation), or values, policies, or services. (10) Consignment, Hooting Credit or Ledgi r Balances. — To place Group Products with any trade outlet on a consignment basis or on a floating credit and/or ledger balance basis. All consignments, floating credit, and/or ledger balances existing on the date of the approval of this Supplementary Code shall be terminated within ninety (90) days by either of the following methods : (a) By return of such merchandise to the owner. (b) By customer accepting billing for such consignments, floating credits, and/or ledger balances for payment in full within six months. (17) Warehousing. — To warehouse Group Products with any class of customers. (18) Defective Material. — For Class " B " members to allow credit for defective material outside the scope of the uniform guaranty which is as follows : " Products are not guaranteed beyond ninety days from date of installation, and in no event for more than one year from date of shipment from member's plant and then only against defective mate- rial or workmanship. Products which are alleged to be defective must be returned for inspection, transportation charges prepaid, to such point as the member or his agent may designate. If upon inspec- tion such products are found to be defective in material or workman- ship, they may be repaired or replaced by products of similar type and capacity and the prepaid transportation charges refunded." (19) Returned Goods. — (a) To accept the return of Group Products except for merchandise credit. This clause shall not apply to the return of defective material in the case of the closing out of an account. (b) To allow the return of Group Products without a handling charge to the customer which adequately reflects the cost of rehan- dling, retesting, reinspecting, and repacking — the customer paying all return shipping and insurance expenses — except when the cus- tomer returns legitimately defective material, as within the scope of the uniform guaranty set forth in Article IV, paragraph 18 of this Supplementary Code; or the customer returns Group Products shipped by a member through error, or certain specified items that a member may ask all his customers to return. (20) Open Price Filing. — (a) Each Class " B " member of the- Product Group shall file with a confidential and disinterested agent of the Administrative Committee or, if none, then with such an agent designated by the National Industrial Recovery Board, iden- tified lists of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale, including premiums, hereinafter in this Section (22) referred to as " price terms ", which lists shall completely 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 the Product Group as are sold or offered for sale by said member and for such non-standard products of said member as shall be designated by the Administrative Committee. Said price terms shall in the first instance be filed within 15 days after the date of approval of this provision. Price terms and 12 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 mem- ber of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall upon receipt be immediately and simultaneously distributed to all Class " B " members of the Product Group and to all of their customers Avho have applied there- for and have offered to defray the cost actually incurred by the Administrative Committee in the preparation and distribution thereof and be available for inspection by any of their customers at the office of such agent. Said lists or revisions or any part thereof shall not be made available to any person until released to all Class " B " members of the Product Group and their customers, as aforesaid ; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid 15 day period after the approval of this Supplementary Code. The Administrative Com- mittee shall maintain a permanent file of all price terms filed as herein provided, and shall not destroy any part of such records ex- cept upon written consent of the National Industrial Recovery Board. Upon request the Administrative Committee shall furnish to the National Industrial Recovery Board or any duly designated agent of the National Industrial Recovery Board copies of any such lists or revisions of price terms. (b) When any member of the Product Group has filed any revi- sion, such member shall not file a higher price within forty-eight (48) hours. (c) No member of the Product Group shall sell or offer to sell any products of the Product Group for which price terms have been filed pursuant to the provisions of this Section (22), except in ac- cordance with such price terms; and provided further that in case a member desires to meet lower competitive price terms which have been filed in accordance with the provisions of paragraph (a) hereof, said member shall immediately file new price terms with the Adminis- trative Committee and these new price terms shall become effective on the same date as the competitive price terms first filed. (d) No member of the Product Group 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 the Product Group 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 Section (22) to create. (21) Classification of custovners. — The Code Authority shall cause to be formulated and keep current a classification of all types of rustomers of the Industry. Such classification shall be subject to the disapproval of the National Industrial Recovery Board and shall contain: (a) A complete list of all of the classes of customers of the Industry, including a class to cover every known type of cus- tomer; and (b) definitions or descriptions of the several classes in terms of functions performed, or in other appropriate terms such as purchasers of defined quantities. After submission to the National Industrial Recovery Board, if there is no disapproval or request for suspension of action within 13 twenty (20) days, full information concerning the classification shall "be made available to all members of the Industry. No one shall by intimidation, coercion, or other undue influence cause or attempt to cause the inclusion of any customer in or the exclusion of any customer from any class of customers, or the exclusion of any class of customers from the classification, or the use of uniform or stipulated prices, discount, or differentials and each member of the Industry may at all times classify his own customers in accordance with his own judgment. (22) Terms. — To grant a cash discount to exceed 2%, 10th prox- imo, to extend terms greater than 30 days net, or to extend date of invoice beyond regular established credit terms. No cash discount shall be allowed on trade acceptance or note settlement. (23) Replacing Competitors' Stock. — To liquidate, purchase, or accept another member's product from any buyer. (21) Advertising and Promotional Schemes. — To patronize, through allowances or otherwise, advertising or promotional schemes in any form except where the payments therefor are for specific promotion performances which are possible, practicable and capable of being audited. Arrangements for each such services shall be in agreements entirely separate and distinct from sales agreements be- tween a member and his customer, and shall definitely specify exactly how such shall be paid (in money or credit, goods or services) for such promotional services, exactly what services shall be rendered and the method which will be employed in auditing the performance of such services. (25) Premiums. — The giving of premiums and/or prizes to any customers and/or their employees when such premiums and/or prizes are not offered to all customers and/or their employees of the same class. Article V — General (1) 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. (2) Such of the provisions of this Supplementary Code as are not required to be included herein by the Act may, with the approval of the National Industrial Recovery Board, be modified or eliminated on the proposal by the Product 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 pro- vision to this Supplementary Code or modifications thereof will, after approval by the Product Group, be submitted by the Adminis- trative Committee through the Code Authority for their approval to prevent unfair competition in price and other unfair and destruc- tive competitive practices and to effectuate the purposes of the Act. Upon approval by the National Industrial Recovery Board after such notice and hearing as it may prescribe, such supplementary provisions or modifications shall become binding as a part of this Supplementary Code. (4) As required by Section 10 (b) of Title I of the Act, this Supplementary Code and all of the provisions thereof are expressly UNIVERSITY OF FLORIDA 14 3 1262 08584 3604 made subject to the right of the President from time to time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. (5) Violation by any member of this Product Group of any provision of this Supplementary Code is an act of unfair competi- tion, and the offender shall be subject to the penalties imposed by the Act. (6) The "Effective Date" of this Supplementary Code shall be the 10th day after it shall have been approved. Approved Code No. 105 — Supplement No. 10. Registry No. 1404-45. o