Approved Code No. 84 — Supplement No. 41 Registry No. 1118—1—02 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE OPEN STEEL FLOORING (GRATING) MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON JULY 11, 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. : 1S01 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber, of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. 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Approved Code No. 84 — Supplement No. 41 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE OPEN STEEL FLOORING (GRATING) MANUFACTURING INDUSTRY As Approved on July 11, 1934 ORDER Approving Supplementary Code of Fair Competition for the Open Steel Flooring (Grating) Manufacturing Industry a division of the fabricated metal products manufacturing and metal finishing and metal coating industry An application having' been duty made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 1G, 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 Open Steel Floor- ing (Grating) Manufacturing Industry; and hearing having been duly held thereon; and the annexed report on said Supplementary Code containing findings with respect thereto, having been made and directed to the President: NOW. THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery pursuant to authority vested in me by Executive Orders of the Pres- ident, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Supplementary Code complies in all 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 ap- proved: provided, however, that the provisions of Article VII, Sec- tion (a), insofar as they prescribe a waiting period between the filing with the Supplementary Code Authority (or such agency as may be designated in (he Supplementary Code) and the effective date of 7ol!t0° 829-42 34 1 (1) price lists, as originally filed and/or revised price lists or 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 ivisio n A d minis t rat or. Washington, D.C., July 11, 193 li. REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplementary Code of Fair Com- petition for the Open Steel Flooring (Grating) Manufacturing Industry, a division of the Fabricated Metal Products Manufactur- ing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., January 8, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Open Steel Flooring (Grating) 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 Supplementary Code of fair practice, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Prod- ucts Manufacturing and Metal Finishing and Metal Coating Industry approved by you on the second day of November, 1933. RESUME QF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Sup- plementary Code. Article III. This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of its Basic Code, as approved November 2, 1933, are the labor provisions of this Supplementary Code. Article IV establishes a Supplementary Code Authority consisting of seven (7) members elected by the members of the Industry at a meeting called by the Supplementary Code Authority, one of whom shall be chosen from Qon-members of the Open Steel Flooring Asso- ciation or its successor and gives the Administrator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. Article V sets forth the cost accounting procedure to be used by the Industry upon the approval of the Administrator. Article VI provides against selling products at less than cost to the seller. Article VII provides for the filing of price lists and discount sheets with the Supplementary Code Authority. (3) Article VIII sets forth the fair trade practices of this Supple- mentary Code which has been especially designed to effect fair com- petition in this division of the Industry. Article IX provides against monopolies and monopolistic practices. Article X contains the mandatory provisions contained in Section 10 (b) and also provides for the submission of proposed amend- ments to the Supplementary Code. Article XI recognizes that price increases be limited to actual additional increases in the seller's costs. Article XII 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 now of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by prompting the organi- zation 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 re- spects 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 repre- sentative of the aforesaid Industry; and that said association im- poses no inequitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 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 Article VII, Section (a), 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 revised terms and conditions of sale, be and they hereby are stayed pending my further Order. Respectfully, Hugh S. Johnson, A dministrator. July 11, 1934. SUPPLEMENTARY CODE OF FAIK COMPETITION FOR THE OPEN STEEL FLOORING (GRATING) MANUFAC- TURING 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 Supplemen- tary Code of Fair Competition for the Open Steel Flooring (Grating) Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by the President of the United States on the second day of November, 1933, and the provisions of the Supplementary Code shall be the standards of fair competition for this Industry and shall be binding upon every member of the Industry. Article II — Definitions The term " Open Steel Flooring (Grating) Manufacturing In- dustry " is defined to mean the manufacture for sale of Open Steel Flooring (Grating), a structure consisting of metal strips, bars and/or shapes placed on edge and held solidly in place equi-distant from each other by means of cross bars or crimped bars secured to the bearing bars by riveting, interlocking or welding; except, how- ever, such open steel flooring (grating) platforms considered an integral part of assembled machinery. The term " employee " as used herein includes anyone engaged in the Industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation. The term " employer " as used herein includes anyone by whom any such employee is compensated or employed. 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 own 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. 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. (6) The term " Supplementary Code Authority " as used herein means the agency which is to administer this Supplementary Code as here- inafter provided. The term "Association" as used herein, is defined to mean the ( )|>en Steel Flooring Association or its successor. The term "Supplementary Code Committee" is defined to mean the Executive Committee of the Association. The term " Secretary "' is defined to mean the Secretary of the Supplementary Code Authority. The term ,k Federation " as used herein is defined to mean the Fabricated Metal Products Federation or its successor. The term " Confidential Agent "' as used herein, is defined to mean the impartial agency designated by the Supplementary Code Authority. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and without limitation the wage, hour and labor provisions in Arti- cle III of its Basic Code as approved by the President. November 2, 1933, including Section 1 of said Article III, by which the provisions of sub-sections (1), (2) and (3) of Section 7, (a) of Title I of the Act are made conditions of this Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor provi- sions of this Supplementary Code. Article IV — Organization and Administration Section 1. During the period not to exceed sixty (60) days follow- ing the effective date of this Supplementary Code the Supplementary («ile Committee shall constitute a Temporary Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of seven (7) members to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten days' notice sent by regis- tered mail to all members of the Industry whose names may be as- certained after a diligent search, who may vote either in person or by proxy. The members of the Supplementary ('ode Authority first elected shall serve until the following annual meeting of the Associa- tion, and thereafter members of the Supplementary Code Authority shall be elected by the members of the Industry, at each annual meet- ing of the Association to serve until the following annual meeting. The members of the Supplementary Code Authority shall be elected in the following manner: (a) One member who is a member of the Industry shall be elected by a majority vote of all members of the Industry present in person or by proxy, each member to have one vote. (b) One member who is a member of the Industry but who is not a member of the Association shall he elected by a majority vote of all non-members of the Association, present in person or by proxy, each member to have one vote. 73190 - 829 4-J. 34 2 8 (c) Five members by fifty-one percent 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 five thousand dollars ($5,000) of annual net sales in the previous calendar year reported to the Temporary Supplementary Code Authority; provided, however, that no one member may cast more than twenty percent (20%) of the total number of votes cast. No two members of the Supplementary Code Authority shall be connected with any one member of the Industry. 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 selected from the same 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 Industrjr, 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. Any Association directly or indirectly participating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions on admission to mem- bership, and (2) submit to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amendments when made thereto, together with such other information as to mem- bership, 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 prescibe such hearings as he may deem proper; and, there- after, if he shall find that the Supplementary Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification of the method 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 neces- sary : (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 lure been ap- proved by the Administrator, to determine and obtain equitable ibution as above set forth by all members of 1 1 k * Industry, and to thai end, if Dec ssary, to institute legal proceedings therefor in its own name. Bach member of the Industry shall pay bis 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 Admin- istrator. Only members of the Industry complying with the Sup- plementary Code 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 Authority shall neither incur nor pay any obligations in excess of the amount thereof as estimated in its approved budget, except upon approval of the Administrator first obtained; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 5. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose. Nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent or employee of the Supplementary Code Authority, nor shall any member of the Supplementary Cod'.; Authority, exercising reasonable diligence in the conduct of his duties hereunder, lie liable to anyone for any action or omission to act under this Supplementary Code, except for his own willful mal- feasance or non-feasance. Section 0. The Supplementary Code Authority shall also from time to time furnish to the Basic Code Authority, designated in said Basic Code, such information as may be required to be furnished under the terms of said Basic Code. Sjxtion 7. The Supplementary Code Authority shall have all the powers and duties which shall be necessary or proper to enable it to fully administer this Supplementary Code and to effectuate its purpose. Without limitation to the foregoing, the Supplementary ('ode Authority shall have the following further powers and duties: (a) To adopt By-Laws and Rules and Regulations for and keep ds of it- procedure and for tin' administration of the Supple- mentary Code. ih) To obtain from members of the 1 ndustry such information and reports as are required for the administration of the Supplementary Code. In addition to information required to be submitted to the Supplementary Code Authority, members of the Industry subject t<> thi- Supplementary Code -hall furnish such statistical informa- tion ;i- the Administrator may deem necessary for the purposes re- cited in Section 3(a) of the Act to such Federal and State agencies as he may designate; provided that nothing in this Supplementary Cod,- shall relieve any member of the Industry of any existing obli- gations to furnish report- to any Government agency. No individual report shall be disclosed to any other member of the Industry or any 10 other party except to such other Governmental agencies as may be directed by the Administrator. (c) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supple- mentary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. (d) To make recommendations to the Administrator for the co- ordination of the administration of this Supplementary Code with such other codes, if any, as may be related to or affect the members of the Industry. (e) To recommend to the Administrator further fair trade prac- tice provisions to govern members of the Industry in their relations with each other or with other Industries and to recommend to the Administrator measures for industrial planning, including stabiliza- tion of employment. (f) To provide appropriate facilities for arbitration of differ- ences between members of this Industry, and subject to the approval of the Administrator, to prescribe rules of procedure and rules to effect compliance with awards and determination. (g) 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 relations between employers under this Supplementary Code and under such other Codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this Supplementary Code and such other Codes. Section 8. To the extent permitted by the Act and subject to such rules as the Administrator may prescribe, the Supplementary Code Authority shall have power to investigate all alleged complaints filed with it by one member or members of the Industry against another member or members of the Industry and to report thereon to the Administrator with its recommendations. Section 9. 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 Supplementary 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 impartial agency shall be selected by the Administrator, which impartial agency may check so much of the pertinent books, ac- counts and records of such members of the Industry as may be required to verify the accuracy of the information so furnished. Section 10. 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 such Supplementary Code Authority or agency regarding the matter com- plained of may be taken if approved by the Administrator but shall not be taken if disapproved by the Administrator within thirty days of notice to him of intention to proceed with such action. 11 SECTION 11. Every employer shall provide for (ho 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 Supplementary Code Authority to the Administrator within three months after the effective date of the Supplementary Code. Article A' — Accounting and Costing Section 1. The Supplementary Code Authority shall cause to be formulated an accounting system and methods of cost finding and/or estimating capable of use by all members of the Industry. After such system and methods have been formulated and approved by the Administrator, full details concerning them shall be made available to all members. Thereafter all members shall determine and/or estimate costs in accordance with the principles of such methods. Section 2. When the Supplementary Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Supplementary Code, the Supplementary Code Authority may cause to be deter- mined the lowest reasonable cost of the products of this Industry, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, dis- approve, or modify the determination. Thereafter, during the pe- riod of the 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 or 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. Article VI — Selling Below Cost No employer shall sell or exchange or offer to sell or exchange any products of this Industry at a price, or upon terms and con- ditions, which will result in the purchaser paying for the goods received, less than the cost thereof to the seller, determined in accordance with a uniform method of costing as described in Article V, Section 1 of this Supplementary Code, provided, however, that dropped lines, or seconds, or inventories which must be converted into cash to meet emergency needs may be disposed of by any member of this Industry, at any price and on any terms and conditions, but only if such member of this Industry, has prior to such disposal, filed with the Supplementary Code Authority, or its Confidential Agent, a statement in writing, setting forth the fact of, and reasons for, such proposed disposal; and provided further, that any member of this Industry may sell below his costs in order to meet competitive prices which do not violate this Supplementary Code, and which are filed in accordance with the provisions of Article VII of this Supplementary Code, or to meet competition from products of equivalent design, character, quality, or specifications, manufactured 12 within or outside the United States, provided that he has first so reported to the Supplementary Code Authority and in such report has cited the competition which caused him to take such action. Article VII — Price Lists (a) Each member of this Industry shall within ten (10) days after the effective date of this Supplementary Code, publish and file with the Supplementary Code Authority through its Secretary a net price list, or price list and discount sheet, as the case may be, individually prepared by him, and in such form and for such products as the Supplementary Code Authority may prescribe show- ing his current prices, or prices and discounts, and terms of sale and payment, and the Supplementary Code Authority through its Secretary shall immediately send copies thereof to all known manu- facturers of such products. Such price lists shall be available to all interested buyers at the office of the Secretary. Revised price lists and/or discount sheets and/or all other con- ditions of sale may be published and filed from time to time there- after with the Supplementary Code Authority through its Secre- tary by any member of this Industry, but such revised price lists and/or discount sheets and/or all other conditions of sale shall be filed with the Supplementary Code Authority through its Secre- tary and shall become effective ten (10) business days after actual receipt by the Secretary. Copies of such revised price 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 known manufacturers of such products and shall be available to all inter- ested buyers at the office of the Secretary and any member of this Industry may file, if he so desires, revisions of his price lists and/or discount sheets and/or all other conditions of sale, which shall be- come effective at the date when the revised price lists and/or dis- count sheets and/or all other conditions of sale first filed become effective, provided that he shall not establish prices lower, nor dis- counts greater, nor conditions of sale more favorable than those contained in the revised price lists and/or discount sheets and/or all other conditions of sale first filed. No member of the Industry who files new price lists as herein provided shall make any announcement to the trade, either directly or indirectly, by written or printed announcement or through sales- men or other representatives, of the filing of such new lists before the date on which the ljst is actually filed with the Confidential Agent. 1 (b) If and when the Supplementary Code Authority shall de- termine that the orderly distribution and/or marketing conditions require that certain products of this Industry not now sold on the basis of price lists with or without discount sheets or all other conditions of sale or payment, should be sold on a price list basis, and such determination is approved by the Administrator, then each member of the Industry manufacturing the affected product or products of the Industry shall within twenty (20) days after notice of such determination and approval file with the Supplementary Code Authority net price lists or price lists and discount sheets contain- 1 See paragraph 2 of order approving this Code. 13 ing all other conditions of sale covering such products; and such price lists and/for discount sheets and/or other conditions of sale may be thereafter revised the same as is provided in Section (a) of this Article; provided, however, that the determination of the Sup- plementary Code Authority to place any product of the Industry (not now on a price list basis) on a price list basis as provide I in this paragraph (b) of Article VII shall not become effective until two-thirds of the members of the Industry, who are at that time engaged in manufacturing such products, shall affirmatively consent that such determination be made. (c) Each member of the Industry shall furnish the Supplementary Code Authority for distribution with such number of copies of his price lists and/or discount sheets as the Supplementary Code Authority may prescribe. (d) No member of the Industry shall sell, directly or indirectly, by any means whatsoever, any product of the Industry covered by provisions of this Article VII at a price or at discounts or on condi- tions of sale other than those provided in his own current net price lists, or price lists and discount sheets. Article VIII — Unfair Trade Practices Superseding all the Trade Practice provisions of Article V of the Basic Code. For all purposes of this Supplementary Code, the following described acts shall constitute unfair practices. Any member of the Industry who shall directly or indirect!} 7 through any officer, emploj'ee, agent or representative use or employ any of such unfair practices shall be guilty of a violation of this Supple- mentary Code. Rule 1. False Advertising. — No member of the Industry shall pub- lish advertising (whether printed, radio, display or of any other nature), which is misleading or false in any material particular, nor shall any member in any way misrepresent any goods (including hut without limitation its use, trademark, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or prepa- ration), or credit terms, values policies services, or the nature or form of the business conducted. Kile 2. False Billing. — No member of the Industry shall know- ingly withhold from or insert in any quotation or invoice any state- ment that makes it inaccurate in any material particular. Rule 3. Inaccurate Labeling. — Xo member of the Industry .-hall brand or mark or pack any goods in any manner which is intended to or does deceive or mislead purchasers with respect to the brand, grade, quality, quantity, origin, size, substance, character, nature, finish, material content or preparation of such goods. Rule 1. 1 micturate References to Competitors. — No member of the Industry shall by advertising or any other means refer inaccurately in any material particular to any competitors or their goods, prices. values, credit terms, policies or services. Rule 5. Threats of La a- Suits. — No member of the Industry shall publish or circulate unjustified or unwarranted threat- of legal pro- ceedings which tend to or have the effect of harassing competitors or intimidating their customers. Failure to prosecute in due course 1 shall be evidence that any such threat is unwarranted or unjustified. 14 Rule 6. Secret Rebates. — No member of the Industry shall offer or make any payment or allowance of a secret rebate, refund, com- mission, credit, unearned discount or excess allowance for the pur- pose of influencing a sale, whether in the form of money or other- wise, nor shall a member of the Industry secretly offer or extend to an}^ customer any special service or privilege not extended to all customers of the same class. Rule 7. Selling on Consignment. — No member of the Industry shall ship goods on consignment except under circumstances to be defined by the Supplementary Code Authority and approved by the Administrator, where peculiar circumstances of the Industry require the practice. Rule 8. Bribing Employees. — No member of the Industry shall give, permit to be given, or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any em- ployee, agent or representative of another in relation to the busi- ness of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not be construed to pro- hibit free and general distribution of articles commonly vised for advertising except so far as such articles are actually used for com- mercial bribery as hereinabove defined. Rule 9. Interference with Another 's Contracts. — No member of the Industry shall attempt to induce, the breach of an existing con- tract between a competitor and his customer or source of supply; njor shall any such member interfere with or obstruct the perform- ance of such contractual duties or services. Rule 10. Coercion. — No member of the Industry shall require that the purchase or lease of any goods be a pre-requisite to the purchase or lease of any other goods. Rule 11. Substitution. — No member of the Industry shall furnish articles more or less expensive, of better or inferior quality, or of larger or smaller size than specified, without making the proper adjustments in the quoted price and clearly indicating the nature of the substitution. Rule 12. Lw?ip Sum Bids and Contracts. — No member of the In- dustry shall submit a bid or bids for two or more commodities, (one of which is Grating), in which the unit price of each commodity is not clearly stated, or accept orders or contracts for sale at a lump sum where the contract does not specify the exact quantity, quality and unit price of the product purchased. Article IX — Monopolies No provision of this Supplementary Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. Article X — Modifications Section 1. As provided by Section 10 (b) of the Act, the Presi- dent may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. 15 Section 2. This Supplementary Code, except as to provisions re- quired by the Act, may be modified or amended on the basis of experience or changes in circumstances, such modifications or amend- ments to be based upon application by the Supplementary Code Authority or other representative group within the Industry to the Administrator and such notice and hearing as he shall specify and to become effective on approval by the Administrator. Article XI — Price Increases Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs should be delayed, and when made, such increases should, so far as possible, be limited to actual additional increases in the seller's costs. Article XII — Effective Date and Duration This Supplementary Code shall become effective at 12 : 01 o'clock A.M., 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. 41. Registry No. 1118-1-02. o UNIVERSITY OF FLORIDA III 3 1262 08856 0858