Approved Code No. 347 — Supplement No. 47 Registry No. 1414 — 12 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MINE CAR MANUFACTURING INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON FEBRUARY 5, 1935 WE DO OUR PART NITEiy STATES MENT 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. Y. : 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. 347 — Supplement No. 47 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MINE CAR MANUFACTURING INDUSTRY As Approved on February 5, 1935 ORDER Supplementary Code of Fair Competition for the Mine Car Manufacturing Industry a division of the machinery and allied products 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- mental Code of Fair Competition for the Mine Car Manufacturing Industry, a Subdivision of the Machinery and Allied Products In- dustry, and hearing having been duly held thereon and the an- nexed report on said Supplemental 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, 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- mental Code complies in all respects with the pertinent provisions and will promote the policies and purposes of said Title of said Act; and does hereby order that said Supplemental Code of Fair Competition be and it is hereby approved subject to the following conditions : (1) That the provisions of Article VII, Section 2, insofar as they prescribe a waiting period between the filing with the Code Authority (i. e. actual receipt by the Code Authority) and the effec- tive date of revised price list or revised terms and conditions of sale, be stayed and they are hereby stayed pending the further order of the National Industrial Recovery Board. (2) That the words " on the date specified therein but any re- vision must be filed with the agent five (5) days in advance of the effective date as specified ", be deleted from the fourth sentence of Section 2 of Article VII and the words " immediately upon receipt thereof by said agent " substituted therefor. 113793° 1573-20 35 (1) (3) That the seventh sentence of Section 2, Article VII, reading: "Any employer receiving any such list or revision, may thereupon file, if he so desires, a revision of his price terms, specifying an effective date that may be on or after the effective date of such re- vision first filed," be deleted. National Industrial Recovery Board, By W. A. Harriman, Administrative Officer. Approval recommended : Barton W. Murray, Division Administrator. Washington, D. C, February 5, 1935. REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Compe- tition for the Mine Car Manufacturing Industry, a Subdivision of the Machinery and Allied Products Industry, Public Hearing hav- ing been conducted thereon in Washington, D. C, September 25, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Mine Car Manufacturing Subdivision being truly representa- tive of the manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Supple- mental Code of Fair Competition as provided in the second para- graph of Article I of the Code of Fair Competition for the Machinery and Allied Products Industry, approved by you on the seventeenth day of March, 1934. The Mine Car Manufacturing Subdivision includes the manufac- ture for sale or lease of non-powered wheeled vehicles not exceeding 350 cubic feet level full capacity such as are customarily employed in coal mining operations for transportation of coal from the point of its dislodgment at the face of the operations to the tipple or to the place where it is used, processed, stored or committed to other transportation facilities; and chilled cast iron mine car wheels; and parts and repair parts for such vehicles, except those manufactured under any other approved code. Statistical material bearing on this Subdivision was obtained from the Code application submitted by the Mine Car Manufacturing Industry. This Industry as represented by the Mine Car Manu- facturing Employers claims to represent 90 per cent of the Sub- division as defined in Article II, Section 3, of the Supplemental Code of Fair Competition for the Mine Car Manufacturing Industry. Annual sales in 1933, according to the Mine Car Manufacturing Industry, declined to slightly less than one-third of the 1929 level. In 1929 sales were reported as $7,668,520, and in 1933 as $2,529,967. Estimates showing employment for the entire Subdivision, sub- mitted by the Mine Car Manufacturing Industry in their Code appli- cation, indicated that employment declined from 1,651 in 1929 to 1.323 in 1933, or 19.8 per cent. RESUME OF SUPPLEMENTAL CODE Article I states the purposes of the Supplemental Code. Article II accurately defines specific terms applicable to the sub- division as used in this Supplemental Code. (3) Article III provides for the adoption of the employment pro- visions of the National Industrial Recovery Code of the Machinery and Allied Products Industry, as approved by you and as from time to time amended. Article IV provides for the adoption of Articles II, VI and IX of the National Industrial Recovery Code of the Machinery and Allied Products Industry, in accordance with the conditions of this Article governing their adoption. Article V provides for the operation of a Code Authority and defines its powers and duties. Article VI sets forth methods of procedure wherein bids and/or proposals are concerned. Article VII provides for price filing and opposes price fixing. Article VIII provides for rates of discounts, installments, leasing of products of this Subdivision and period of free discount. Article IX sets forth unfair trade practices for this Subdivision. Article X states that no provision of this Supplemental Code concerning pricing and marketing (Articles VI, VII and VIII) shall apply to export sales as defined by the term " Export " in this Article. Article XI provides that this Supplemental Code and all the pro- visions thereof are expressly made subject to the right of the Presi- dent, in accordance with Subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under said Title I of the Act. Provision is also made that modifications may be submitted by the Code Author- ity to the National Industrial Recovery Board for approval. Article XII states that no provision of this Supplemental Code shall be applied so as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Article XIII states the effective date of this Supplemental Code. FINDINGS The Assistant Deputy Administrator in his final report to the National Industrial Recovery Board on said Supplemental Code having found as herein set forth and on the basis of all the proceed- ings in this matter: The National Industrial Recovery Board finds that : (a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organiza- tion of industry for the purpose of cooperative action 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 Subdivision normally employs not more than 50,000 employees; and is not classified by the National Industrial Recovery Board as a major industry. (c) The Supplemental Code as approved complies in all respects with the pertinent provisions of said Title or 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 group is an individual group truly representative of the aforesaid Subdivision; and that said group imposes no inequitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplemental 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 Supplemental Code. For these reasons, therefore, the National Industrial Recovery Board has approved this Supplemental Code, staying and deleting certain provisions related to price filing as stated in the Order. For the National Industrial Recovery Board : TV. A. Harriman, Administrative Officer. February 5, 1935. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MINE CAR MANUFACTURING INDUSTRY • A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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- mental Code of Fair Competition for the Mine Car Manufacturing Subdivision of the Machinery and Allied Products Industry and, together with the Code of Fair Competition of the Machinery and Allied Products Industry, shall be the standards of fair competition for this Subdivision and shall be binding on every employer therein. Article II — Definitions Section 1. " Applicant " means the Mine Car Manufacturing Industry. Section 2. " Industry " means the Machinery and Allied Products Industry as denned in its Code of Fair Competition as approved by the President, March 17, 1934, and as such definition may from time to time be amended. Section 3. " Subdivision " means this Mine Car Manufacturing Subdivision of the Machinery and Allied Products Industry as de- fined and set forth in definition number 50 of Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows : " Mine Car Manufacturing Subdivision " means the manufacture for sale or lease of non-powered wheeled vehicles not exceeding 350 cubic feet level full capacity such as are customarily employed in coal mining operations for transportation of coal from the point of its dislodgment at the face of operations to the tipple or to the place where it is used, processed, stored or committed to other trans- portation facilities ; and chilled cast iron mine car wheels ; and parts and repair parts for such vehicles except those manufactured under any other approved code. Section 4. " Code " means the Code of Fair Competition for the Machinery and Allied Products Industry as approved by the Presi- dent, March 17, 1934, and as from time to time amended. Section 5. " Supplemental Code " means this Supplemental Code for the Mine Car Manufacturing Subdivision of the Machinery and Allied Products Industry. Section 6. " Basic Code Authority " means the Code Authority of the Machinery and Allied Products Industry as constituted by the Code. Section 7. " Code Authority " means the Code Authority consti- tuted for this Subdivision as provided by the Code and by this Supplemental Code. (6) Section 8. "Affiliated Company " means any corporation vhieh is a member of an affiliated group of which an employer is also a member. Such corporation shall be deemed to be an affiliated com- pany of such employer within the meaning of this Code. An affili- ated group as used in the foregoing statement means one or more corporations connected through stock ownership with a common par- ent corporation if the stock of each of said corporations (except such common parent corporation) is substantially wholly owned (90% or more) directly or indirectly by said common parent cor- poration or by one or more of the other corporations, and shall include such common parent corporation. Section 9. " Person " means a natural person, a corporation, a partnership, an association, a trust, a trustee, a trustee in bank- ruptcy, a receiver, or other entity. Section 10. " Employer " means any person engaged in this Sub- division either on his own behalf or as an employer of labor. Section 11. " Employee " means anyone who is employed in the Subdivision by such employer, however compensated. Section 12. " The Act " means Title I of the National Industrial Recovery Act. Section 13. " The President " means the President of the United States. Section 14. " Board " means the National Industrial Recovery Board or its successor in office. Article III — Employment Provisions The following Articles of the Code, viz : Article III, " Working Hours " ; Article IV, " Wages " ; and Article V, " General Labor Provisions ", are hereby made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Article IV — Adoption of Other Provisions of Code The following Articles of the Code, viz : Article II, " Definitions "; Article VI "Administration ", to the extent that they shall be appli- cable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; and Article IX, "With- drawal ", are hereby adopted and made a part of this Supplemental Code, with the same effect as if they were written into this Sup- plemental Code. Article V — Administration A Code Authority is hereby constituted to administer and facili- tate the enforcement of this Supplemental Code. Section 1. During a period not to exceed thirty (30) days follow- ing the effective date of this Supplemental Code, the Code Committee duly elected from and by the representatives of employers of the Subdivision, and functioning at the date this Supplemental Code is approved, shall be the Temporary Code Authority. The Board, in its discretion, may appoint one additional member (without vote and without expense to the Subdivision). Section 2. Within said thirty (30) days' period, the Temporary Code Authority shall, on at least twelve (12) days' notice (from date of mailing) by registered mail to all known employers, call a meeting of the Subdivision for the adoption of Procedural Rules and Regulations, and for the election of a permanent Code Author- ity which shall consist of seven (7) members elected by and from the employers in the Subdivision entitled to vote as provided in Section 8, of this Article V, each member to serve for a term of one year or until his successor shall have been elected and qualified, or the Code shall have been terminated. The Board, in its discretion, may appoint one additional member (without vote and without expense to the Subdivision). The Permanent Code Authority so elected shall immediately supersede the Temporary Code Authority. Section 3. Action by employers in all Subdivision meetings, including the election of permanent Code Authority, adoption of Procedural Rules and Regulations and the transaction of other business of the Subdivision except additions to or revisions of this Supplemental Code and withdrawal from the Basic Code, shall be by a majority vote of employers entitled to vote as provided in Section 8 of this Article V who are present in person or by proxy duly executed and filed with the Code Authority, cast and computed concurrently by each of the two following methods : 1. By one vote of each employer. 2. By vote of employers weighted on the basis of one vote for each $200,000 of the total domestic net sales of the Subdivision billed f. o. b. plant by each employer for the preceding three (3) calendar years. The votes so determined shall apply throughout the then current year. Each employer shall be entitled to at least one vote. Section 4. In order that the Code Authority shall at all times be truly representative of the Subdivision, and in other respects comply with the provisions of the Act, the Board may prescribe such hear- ings as it may deem proper; and thereafter if it shall find that the 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 Code Authority. Section 5. Any vacancy on the Code Authority due to death, resignation, or loss of voting qualifications or because a member thereof has ceased to be connected with the Subdivision, shall be filled at a meeting of employers called by the Code Authority on at least twelve (12) days' (date of mailing) notice sent by registered mail to all employers, and by a vote similar to the vote by which the retired member was originally selected. Section 6. (a) Each employer shall keep accurate and complete records of all transactions whenever such records may be required under any of the provisions of this Supplemental Code, and shall furnish accurate reports based upon such records concerning any of such activities when required by the Code Authority or the Board. If the Code Authority or the Board shall determine that substantial doubt exists as to the accuracy of such reports, so much of the pertinent books, records and papers of such employer as may be required for the verification of such reports may be examined by an impartial agency, agreed upon between the Code Authority and such employer, or, in the absence of agreement, appointed by the Board. In no case shall the facts disclosed by such examination be made available in identifiable form to any competitor, whether on the Code Authority or otherwise, or be given any other publication, except such as may be required for the proper administration or enforcement of the provisions of this Supplemental Code. (b) Such investigation or audit may be made under the Code Authority, as above, not only upon receipt of a formal complaint of violation, but when the Code Authority in pursuance of the proper exercise of its powers believes in good faith, in the absence of a for- mal complaint, that a prima facie violation of this Supplemental Code has occurred. Section 7. If the Board shall have reason to believe that any action of the Basic Code Authority or of any Code Authority or of any agency of any of them, may be violative of the provisions of this Supplemental Code or unfair, unjust or contrary to public policy, the Board, after having notified and conferred with the Basic Code Authority or the Code Authority or the authorized representative thereof, or after ten (10) days have elapsed from date of such notification without response from such Code Authority, may require, by notice that such action be suspended for some defi- nite period not exceeding thirty (30) days. Within fifteen (15) days from the date of such suspension, the Basic Code Authority or the Code Authority shall further consider such action and deter- mine (a) whether or not it will continue with such action, as not violative of the Code or of this Supplemental Code, or (b) whether it will proceed with some modified action, and notify the Board of such determination. If such determination is approved by the Board, or is not by it disapproved within fifteen (15) days there- after, such determination shall become effective and such suspension be automatically terminated. If the Board shall disapprove such determination within fifteen (15) days, such action shall be per- manently suspended. Section 8. Any employer shall be entitled to vote at the election of the permanent Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and participate in any endeavors of Code Authority in the preparation of any amendments or revisions of, or addition or supplements to, this Supplemental Code by paying or agreeing to pay, unless duly exempted, as and when assessed, his proper pro rata share of the reasonable cost of administering this Supplemental Code as deter- mined by Code Authority. The pro rata share shall be computed on the basis of the employer's total domestic net sales billed f. o. b. plant averaged over the two preceding years and the total domestic net sales billed f. o. b. plant of the Subdivision averaged over those same two years. Section 9. Nothing contained in this Supplemental Code shall constitute employers or members of the Code Authority as partners for any purpose. Nor shall any member of the Code Authority, ex- ercising reasonable diligence in the conduct of his duties hereunder, be liable in any manner to anyone for any action of any other mem- ber, officer, or employee of the Code Authority or be liable to anyone for any action, or omission to act, under the Code or this Supple- 10 mental Code except for his own wilful misfeasance or nonfeasance. The Code Authority shall be deemed to have discharged its full duty in respect to any violation or alleged violation of the Code or this Supplemental Code when it shall have exercised such powers as are conferred upon it, and in the event of its inability to procure com- pliance with the provisions of the Code, or this Supplemental Code, shall have certified the facts and made available all pertinent infor- mation with respect to such violation or alleged violation to the Board or other appropriate Governmental Authority and thereafter stood prepared to render all proper assistance to the Board or other appropriate Governmental Authority to enable such body to pro- cure enforcement thereof. Article VI — Concerning Bids In each case wherein one or more employers shall be invited to sub- mit proposals or bids to manufacture or build and sell or lease any mine cars or complete mine car parts, each employer so invited shall within forty-eight (48) hours after receipt by him or it of such in- vitation notify in writing a confidential and disinterested agent des- ignated by the Code Authority of the receipt of such invitation, the name of the customer inviting the proposals or bids, the number and kind of mine cars and/or complete mine car parts with respect to which the proposals or bids are invited, the date, if any, on or by which the proposals or bids are to be submitted to the customer and whether or not such employer intends to submit a proposal or bid. Each employer submitting a proposal or bid shall: (a) reduce the same to writing; (b) state therein, among other things, terms of pay- ment and delivery and the price, including the price of such alter- nates as shall be required or proposed; (c) coincident with the sub- mission to the customer (but not earlier) of such proposal or bid, send by mail or cause to be delivered (whichever shall be the more expeditious method of transmittal), a sealed, full, true, and correct copy of such proposal or bid to the agency designated by the Code Authority for the purpose. The agency designated as aforesaid shall on the date on or by which the proposals or bids are to be submitted to the customer as stated in the invitation for bids, or in these cases for which no closing date has been specified, upon the receipt by it of proposals or bids from all the emplo}^ers who or which shall, as aforesaid, have notified it of their intention to submit proposals or bids, open the sealed copies which shall have been deposited with said agency and send by mail or cause to be delivered (whichever shall be the more expeditious method of transmittal) to each employer from whom or which it shall have received a copy of a proposal or bid in respect to any given mine cars and/or complete mine car parts, a copy of every proposal or bid received by it from each other em- ployer in respect to such products; provided, however, that no de- tailed specifications or drawings shall be delivered or revealed to any employer. A bidding employer failing or refusing in any case in accordance with the foregoing to submit a written proposal or bid and/or deliver a copy thereof to the said designated agency shall be guilty of a violation of this Supplemental Code. Nothing contained in this article shall preclude any employer submitting more than one 11 proposal or bid pursuant to any invitation to bid ; provided that all such proposals or bids shall conform to the current filed prices of the bidding employer; and provided further, that copies of all pro- posals or bids shall be submitted, as above provided, to the confi- dential and disinterested agent who shall immediately notify by telegram or telephone all employers who have submitted proposals or bids on the same inquiry. Nothing in this Article VI shall super- sede any Federal, State, or Municipal statute or regulation. Article VII — Open Price Filing Section 1. It shall be the duty of the Code Authority, after con- ferring with all the employers of the Subdivision, to adopt a sched- ule or classified list of component parts of the products of the Subdivision. Such schedule or classified list shall be distributed to, and become the current schedule or classified list of the products of. the Subdivision. (a) Each employer shall cooperate in the compiling and mainte- nance in a current up-to-date condition of the above lists by furnish- ing to the Code Authority such information regarding the details of all conponent parts of products of the Subdivision manufactured by such employer as may be required by the Code Authority for the compiling and maintenance of said lists. Section 2. Each employer shall file with the confidential and disinterested agent designated by the Code Authority, identified lists of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale or lease hereinafter in this Article referred to as " price terms ", which lists shall completely and accu- rately conform to the individual pricing practices of said employer. Such lists shall contain the price terms for all such component parts of products of the Subdivision as covered by Section 1 of this Article VII, as are sold or offered for sale or lease by said employer. Said price terms shall in the first instance be filled within ten (10) days after the effective date of this Supplemental Code. Price terms and revised price terms shall become effective on the date specified therein but any such revision must be filed with the agent five (5) days in advance of the effective date as specified. Immediately upon receipt thereof, said agent shall by telegraph or other equally prompt means notify said employer 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 employers and to all of their customers who have applied therefor and have offered to defray the cost actually incurred by the Code Authority in the preparation and distribution thereof and be available for inspection by any of their customers at the office of such agent. Any employer receiving any such list or revision, may there- upon file, if he so desires, a revision of his price terms, specifying an effective date that may be on or after the effective date of such revi- sion first filed. Said lists or revisions or any part thereof shall not be made available to any person until released to all employers and their customers, as aforesaid; provided, that prices filed in the first instance shall not be released until the expiration of the afore- said ten (10) day period after the effective date of this Supplemental 12 Code. The Code Authority shall maintain a permanent file of all price terms filed as herein provided, and shall not destroy any part of such records except upon written consent of the Board. Upon request the Code Authority shall furnish to the Board or any duly designated agent of the Board copies of any such lists or revisions of price terms. When any employer has filed any revision, such employer shall not file a higher price within forty-eight (48) hours. No employer shall sell or lease or offer to sell or lease any products of the Subdivision for which price terms have been filed pursuant to the provisions of this Article, except in accordance with such price terms. No employer shall enter into any agreement, understanding, com- bination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any employer 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. 1 Section 3. Nothing in Article VII or Article VIII of this Supple- mental Code shall be deemed to apply to or affect the sale of any product by any employer to an affiliated company of such employer, when such product is for use and not for resale. Article VIII — Prices and Terms of Payment Section 1. The maximum rates of discount and maximum periods of free credit shall be those hereinafter set forth. All invoices for products of the Subdivision sold by any employer after the effective date of this Supplemental Code shall be dated not later than the date of the shipment of the products covered thereby. Section 2. A maximum cash discount of 1% may be allowed on invoices covering all products for payment within ten days from the date of such invoices, provided, however, that any employer may allow such discount of 1% for payment within ten days on the basis of settlements twice in each month, as follows : (a) On invoices for products dated from the 1st to the 15th, inclusive, of any month such discount may be allowed on payment of such invoices on or before the 25th of such month ; (b) On invoices for products dated from the 16th to the end of any month, such discount may be allowed on payment of such invoices on or before the 10th of the next following month. Section 3. Any discount allowed in accordance with the provisions of this Article shall apply only to the invoiced value of the products specified therein and not to any part of the transportation charges on such products. Section 4. Whenever any employer elects to sell products of the Subdivision on the basis of installment payments, or by leasing arrangement subject to conditions providing for ultimate purchase by the customer, or by outright lease, all such agreements between employer and customer shall be in writing. For the purpose of this Supplemental Code, leasing of the products of this Subdivision by the manufacturer thereof are hereby made a part of and subject to 1 See paragraph 2 (1), (2), and (3) of order approving this Code, 13 this Code of Fail' Competition. No employer shall use a lease form of contract for the purpose of evading the pricing practices estab- lished herein nor any other provision of this Code. Title in such products so leased or sold shall not pass to customer prior to liquida- tion of unpaid balance. Article IX — Unfair Trade Practices For all purposes of this Supplemental Code the acts hereinafter described in this Article shall constitute Unfair Practices and the use or employing of them or any part of them by an employer shall be deemed a violation of this Supplemental Code. Section 1. Publishing advertising (whether printed, radio, dis- play, or of any other nature), which is misleading or inaccurate in any material particular, or misrepresenting in any way any goods (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. Section 2. Knowingly withholding from or inserting in any quo- tation or invoice any statement that makes it inaccurate in any material particular. Section 3. Defaming a competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representation, or by falsely dis- paraging the grade or quality of his goods. Section 4. Publishing or circulating unjustified or unwarranted threats of legal ■ proceedings, which tend to, or have the effect of, harassing competitors or intimidating their customers. Section 5. Secretly offering or making any payment or allowance of a rebate, a refund, commission, credit, unearned discount or excess allowance, whether in the form of money or otherwise or secretly offering or extending to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. Section 6. Giving, permitting to be given, or offering to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in rela- tion to the business of the employer of such employee, the principle of such agent or the represented party, without the knowledge of such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles com- monly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. Section 7. Using or substituting any material or process of manu- facture superior or inferior to that contemplated in the purchaser's specification without proper charge or allowance, to the purchaser. Section 8. Inducing or attempting to induce., by any means, any party to a commercial contract with any employer to violate such contract. Section 9. Aiding or abetting any person, firm, association, or corporation in any unfair trade practice under this Supplemental Code. UNIVERSITY OF FLORIDA 14 3 1262 08584 2259 Section 10. Making or giving any purchaser of any product, any guaranty or protection in an}' form against decline in the market price of such product. Section 11. Making any sale or contract of sale of any product under any description which does not describe such product in terms customarily used in the Subdivision. Article X — Sales for Export The provisions of this Supplemental Code concerning pricing and marketing (Articles VI, VII, and VIII) shall not apply to direct export sales of any product or to sales of any product destined ulti- mately for export. The term " export " shall include all shipments to all places without the several states of the United States and the District of Columbia; provided, however, that no shipment to any territory or possession of the United States shall be considered an export when any employer is located in such territory or possession. Article XI — Modifications Section 1. As provided by Title I, 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 said Title of the Act. Section 2. Any amendments, additions, revisions, or supplements to this Supplemental Code, proposed by the Code Authority, and approved by two-thirds of all the votes which might be cast at the meeting if all the employers entitled to vote were present and voting, shall be in full force and effect upon approval by the Board. Eligi- bility requirements, method, and effect of voting shall be the same as provided in Sections 3 and 8 respectively of Article V hereof. Article XII — Monopolies No provision of this Supplemental Code shall be applied so as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Article XIII — Effective Date This Supplemental Code shall become effective and binding on all employers on the eleventh day after its approval 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 Act, has ended. Approved Code No. 347 — Supplement No. 47. Registry No. 1414-12. o