► Approved Code No. 84 — Supplement No. 19 Registry No. 1104—05 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION F OR THE CAP SCREW MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON MAY 3, 1934 WE DO OUR PART UNIV. OF FL Lit [ U.S. •EPOWTOJN UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington. D.C. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. 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Approved Code No. 84 — Supplement No. 19 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CAP SCREW MANUFACTURING INDUSTRY As Approved on May 3, 1934 ORDER Approving Supplementary Code of Fair Competition for the Cap Screav Manufacturing Industry a division of the fabricated .metal products manufacturing and metal finishing and metal coating industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, and in accordance with the provisions of Section I of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the Cap Screw Manufacturing Industry, and hearing having been duly held there- on; 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. G543-A, dated December 30, 1933, and otherwise; d<> hereby incorporate by reference said annexed report and do find that said Supplementary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplementary Code of Fair Competition be and it is hereby approved; subject, however, to the following conditions: That the provisions of Article V, Section 2, insofar as they pre- scribe a waiting period between the filing with the Code Authority or such agency as may be designated in the Code, and the effective date of price lists, as originally filed and/or revised price li>:- 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 : A. R. Glancy, Division Administrator. Washington, D.C., May 3, 1934. 56686 ° 544-16 34 ( l ) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Supplementary Code of Fair Competi- tion for the Cap Screw Manufacturing Industry, a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., February 2, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Cap Screw 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 Competition, as provided for in Section 1 of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by you on the second day of November, 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II. accurately defines specific terms employed in the Supplementary 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 five (5) members to be elected by the members of the Industry at a meeting called by the Temporary Supplementary Code Committee, 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 provides for methods of setting up and revising price lists. Article VI provides for determining the lowest reasonable costs of the products of this Industry. Article VII sets forth the unfair trade practices of this Supple- mentary Code which has been especially designed to offset unfair competition in this division of the Industry. Article VIII provides against monopolies and monopolistic practices. Article IX contains the mandatory provisions contained in Section 10 (b) and also provides for the submission of proposed amendments to the Supplementary Code. (2) Article X recognizes that price increases be limited to actual additional increases in the seller's costs. Article XI states the effective date and duration of this Supplementary Code. FINDINGS The Deputy Administrator in his final report to me on said Supple- mentary Code having found as herein -el forth and on the basis of all the proceedings in this matter: I find that : (a) Said Supplementary Code is well designated to promote the policies and purposes of Title T 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 organization 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 supervision, 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 tem- porarily 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 respect 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 group is an industrial group truly representative of the aforesaid Industry; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not 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. Respectfully, Hugh S. Johnson, Administrator. May 3, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CAP SCREW MANUFACTURING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Sup- plementary Code of Fair Competition for the Cap Screw Manufac- turing 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 Pres- ident on the 2nd day of November, 1933, the provisions of this Sup- plementary Code shall be the standard of fair competition for such Industry and shall be binding upon every member thereof. Article II — Definitions Section 1. The terms " President ", "Act ", and "Administrator ", as used herein, shall mean respectively, the President of the United States, the National Industrial Recovery Act, and the Administrator for Industrial Recoveiy under said Act. Section 2. The term " Cap Screws " is defined as steel screws of a type well known to the trade and having head styles commercially described as hexagon, square, fillister, flat, button and round, manu- factured from straight carbon steel containing carbon in excess of .25 per cent, or manganese in excess of .80 per cent, or from any alloy steel without regard to finish, or manufactured from any steel if full finished or semi-finished (machined under side or top of head or both) and also other items such as connecting rod bolts which are similar to and manufactured on the same equipment as Cap Screws and come within the above metallurgical design and finish classification and hexagon head cap screws manufactured from any steel with the required or represented effective tensile strength in excess of 95 thousand pounds per square inch. The term "Cap Screws " also in- cludes " Set Screws ", which are defined as steel screws, with square head or slotted headless, case hardened or otherwise and of a type well known to the trade. But not, however, including Screw Machine Products as defined in the proposed Supplementary Code for that Industry, as revised February 15, 1934. Section 3. The term " product " means and includes Cap Screws as that term is defined herein. Section 4. The term " Industry " means and includes the business of manufacturing Cap Screws for sale. Section 5. The term " Member of the Industry " as used herein includes, but without limitation, any individual, partnership, associa- (4) tion, corporation or other form of enterprise engaged in the Industry either as an employer or on his or its own behalf. Section 6. 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. Section 7. The term "employer" as used herein includes anyone by whom any such employee is compensated or employed. Skction 8. The term ''Basic Code'" as used herein is defined to mean the Basic Code of Fair Competition for the Fabricated Metal Product- Manufacturing and Metal Finishing and Metal Coating Industry as approved by the President on the '2nd day of November. 1933. Section 9. The term "member of the Code' 1 as used herein shall mean any member of tbe Industry who shall have assented to the provisions of this Supplementary Code by instrument in writing duly filed with the Secretary. Section 10. The term " Supplementary Code Authority ", as used herein, is defined to mean the Agency which is to administer this Supplementary Code as hereinafter provided. Section 11. The term '"Bureau ", as used herein, is defined to mean the United States Cap Screw Service Bureau, or its successor. Section 12. The term " Executive Committee ", as used herein, is defined to mean Executive Committee of the United States Cap Screw Service Bureau. Section 13. The term " Secretary ", as used herein, is defined to mean Secretary of the United States Cap Screw Service Bureau, or such other impartial and confidential agency as the Supplementary Code Authority may designate. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the wage, hour and labor provisions in Article III of its basic code as approved by the President November 2, 1933, including Sec- tion 1 of said Article III by which the provisions of Subsections (1), (2) and (3) of Section 7 (a) of Title I of the Act are made condi- tions of this Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor provisions of this Supple- mentary Code. Ajbticle IV — Organization and Administration Section L. During the period not to exceed sixty (60) days fol- lowing the effective date, the Executive Committee shall constitute a Temporary Supplementary Code Authority who shall have all the powers and duties of the Supplementary Code Authority herein set forth, until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of five (5) members to be elected by the members of the Industry, as hereinafter provided, at a meeting called by the Temporary Supplementary Code Authority, upon ten days' notice sent by registered mail to all members of the Industry, whose names can be ascertained after diligent search who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following annual meeting of the Bureau and/or until their successors are elected, and thereafter, members of the Supplementary Code Authority shall be elected immediately after each annual meeting of the Bureau to serve until their successors are elected, and any member shall be eligible for re-election. Notice of each election shall be sent in the manner above provided. The membership of the Supplementary Code Authority shall be made up as follows: (a) 1. Four (4) members who shall be members of the Industry elected by a majority vote of the members of the Bureau present in person or represented by proxy, each member to have one vote; 2. At any time upon request in writing of twenty-five per cent (25% ) of the members of the Bureau, the Supplementary Code Authority shall call a meeting of the members of the Bureau upon the notice above provided, for the purpose of electing successors to such four members of the Supplementary Code Authority to be elected in the same manner as provided in Sub-Paragraph 1 of this Paragraph (a) ; (b) One (1) member who is not a member of the Bureau elected by majority vote of the members of the Industry not members of the Bureau, present in person or represented by proxy, each member to have one vote; (c) A vacancy in the membership of the Supplementary Code Authority may be filled by majority vote of the remaining members of the Supplementary Code Authority; (d) In addition to the above the Administrator may appoint one (1) representative without vote and without expense to the Industry unless the Supplementary Code Authority agrees to pay such expense, to serve on said Supplementary Code Authority in the administration of this Supplementary Code. Said representative shall be given reasonable notice of all meetings of the Supplementary Code Authority. Section 2. Any Association/Institute and/or Bureau directly or indirectly participating in the selection or activities of the Supple- mentary Code Authority shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator 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 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 Admin- istrator may prescribe such Hearings as he 'may deem proper; and, thereafter, 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, the Administrator may prescribe such Hearings as he may deem proper; and, thereafter, 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 removal of any or all of the members thereof and/or may make an appropriate modification or modifications in the method of selection of the Supplementary Code Authority. Section 4, The Supplementary Code Authority is hereby consti- tuted the Agency to administer the provisions of this Supplementary Code and to collect and distribute all statistical reports of the In- dustry. With a view to keeping the President informed as to the observance or non-observance of this Supplementary Code, said agency shall collect, through the Secretary, such statistics as called for by the President and/or the Administrator and send them in such form as the President and/or the Administrator may require to the Fabricated Metal Products Federation, or successor organiza- tion, as the agency administering said Basic Cod-". All individual reports shall be treated as confidential by the Secretary and shall not be disclosed to any member of the Industry or any other party except where necessary in the enforcement of this Code and ex- cept to such governmental agencies as may be directed by the Administrator. Section 5. Said Agency shall also from time to time furnish to the Basic Code Authority, designated in said Basic Code, such informa- tion as may be required to be furnished under the terms of said Basic Code. Section 6. The Supplementary Code Authority shall have power from time to time to require each member of the Industry to furnish to the Secretary such information concerning the production, ship- ments, sales and orders of such member and the hours of labor, rates of pay and other conditions of employment at the plant or plants of such member and such other information as the said Supplemen- tary Code Authority shall deem necessary or proper in order to effectuate the purposes of this Supplementary Code and the policy of the Act. All individual reports shall be treated as confidential by the Secretary and shall not be disclosed to any member of the In- dustry or any other party except where necessary in the enforcement of this Code and except to such governmental agencies as may be directed by the Administrator. Section 7. The Supplementary Code Authority may require that any such information be furnished periodically at such times as it shall specify and may require that any or all information furnished be sworn to or otherwise certified or authenticated as it shall pre- scribe. Failure of any member of the Industry promptly to furnish to the Secretary information required by the said Supplementary Code Authority and substantially in the form prescribed by it shall constitute a violation of the Code. The Supplementary Code Au- thority shall not require any information regarding trade secrets. Section 8. Any or all information furnished to the Secretary by any corporate member of the Industry specifically assenting hereto pursuant to the provisions of this Supplementary Code shall be sub- ject to verification by an examination of the pertinent or neces-:uy book--, accounts and records of such member by the Secretary or by any accountant or accountants or other person or persons designated by the Supplementary Code Authority (none of whom shall be con- nected with any member of the Industry) and shall be so checked for such purpose, if the Supplementary Code Authority shall require 8 it. The cost of each such examination shall be treated as an expense of administering the Supplementary Code. Section 9. Ail members of the Industry are subject to the jurisdic- tion of the Supplementary Code Authority; shall be entitled to par- ticipate in and share the benefits of the Supplementary Code Author- ity; shall be entitled to vote in the selection of the Supplementary Code Authority as provided in Section 1 of this Article; and shall pay to the Secretary as the agent of the Supplementary Code Au- thority their reasonable share of the expenses of the Administration of this Supplementary Code, such reasonable share to be determined by the Supplementary Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other factors as may be deemed equitable by the Supplementary Code Authority. Section 10. Nothing contained in this Supplementary Code shall be deemed to constitute the members of the Supplementary Code Authority partners for any purpose whatsoever. Nor shall any member of the Supplementary Code Authority be liable in any man- ner to anyone for any act of any other member, officer, agent or employee of the Supplementary Code Authority. Nor shall any member of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his own willful misfeasance or non-feasance. Section 11. The Supplementary Code Authority may adopt, sub- ject to the approval of the Administrator, and thereafter all members of the Industry shall maintain, uniform credit terms. Such credit terms shall clearly appear on all quotations, invoices and acceptances of orders. Section 12. If any member of the Industry as defined herein is also a member of any other Industry, the provisions of this Sup- plementary Code shall apply to and affect only that part of his business which is included in the Industry. Section 13. The Supplementary Code Authority shall without any limitation on the foregoing have the following further general powers and duties subject to such rules and regulations as the Administrator may prescribe: (a) To insure the execution of the provisions of this Supple- mentary Code and provide for the compliance of the Industry with the provisions of the Act; (b) To adopt by-laws and rules and regulations for its pro- cedure and for the administration of the Supplementary Code; (c) To obtain from members of the Industry such information and reports as are required for the administration of the Supple- mentary Code. In addition to information required to be sub- mitted to the Supplementary Code Authority, all or any of the persons subject to this Supplementary Code shall furnish such sta- tistical information as the Administrator may deem necessary for the purposes recited in section 3 (a) of the Act to such Federal and State agencies as the Administrator 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 agency; (d) 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; (e) To make recommendations to the Administrator for the co- ordination of the administration of this Supplementary Code with such other codes, if any. as may be related to the Industry; (f) To secure from members of the Industry an equitable and proportionate payment of the reasonable expenses of maintaining the Supplementary Code Authority and its activities; (g) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those members of the Industry who have assented to, and are complying with, this Supplementary Code; (h) 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 stabilization of employment. Section 14. If the Administrator believes that any action of the Supplementary ('ode 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. Article V — Price Lists Section 1. The Supplementary Code Authority may require that each member of the Industry who manufactures and sells any prod- uct of the Industry not used, by himself so as to form part of another product shall within ten days after the effective date of this Code, file with the Secretary and publish a net price list and/or a price list and discount sheet individually prepared by him showing his current prices and/or prices and discounts, and other condition- of sale, including discounts for various classes of customers or for quantity, and the Secretary shall immediately send copies thereof to all other members of the Supplementary Code. Said price list shall be made available to all interested parties. Si.i tton "2. None of the prices, discounts and conditions shown in any list so filed by any member of the Industry as herein provided shall be changed except by the filing by such member with the Secre- tary and the publishing of new prices, discounts and/or conditions which shall become effective on the effective date therein specified which shall be ten days after the date on which such new price data shall have been so filed, and copies thereof with notice of the. effective date specified shall be immediately sent to all members of the Sup- plementary Code, who thereupon may file if they so desire, to become effective upon the date when the revised price data first filed shall 10 go into effect, or at a subsequent specified date, revisions of their price data, establishing prices not more favorable to the purchaser than those established in the revised price data first filed. 1 Section 3. No member of the Industry shall make any sale or quotation of any product of the Industry at a price or on conditions more favorable to the purchaser thereof than the price, terms and conditions so filed by such member in accordance with the provisions of this Supplementary Code and in effect at the time of such sale'; nor shall any member of the Industry make any contract of sale of any product of the Industry at a price or on conditions more favorable to the purchaser thereof than the price, terms and conditions estab- lished as aforesaid and in effect at the time of the making of such contract of sale. For all purposes of this Article a delivery of any product made pursuant to a contract of sale shall be regarded as a sale thereof made at the time of the making of such contract. Section 4. No provision of this Supplementary Code relating to prices or terms of selling, shipping or marketing shall apply to export trade or sales or shipments for export trade within the meaning of the term " export trade " as it is used in the Export Trade Act. Article VI — Sales Below Reasonable Cost Notwithstanding any other provision of this Supplementary Code, when the Supplementary Code Authority determines that an emer- gency 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 determined the lowest reasonable cost of the products of this industry, such deter- mination to be subject to such notice and hearing as the Administra- tor may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, during the period 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 such 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 VII — Unfair Practices Section 1. For all purposes of this Supplementary Code the fol- lowing described acts shall constitute unfair practices. Such unfair practices shall be deemed to be unfair methods of competition in commerce within the meaning of the Federal Trade Commission Act as amended, and any member of the Industry who shall directly or indirectly through any officer, employee, agent or representative use or employ any of such unfair practices shall be guilty of a violation of this Code: 1 See paragraph 2 of order approving this Code. 11 A. The provisions of Article V paragraphs B to G, inclusive, of the Basic Code are a part of this Supplementary Code to the same extent as though here repeated and set forth at length. B. The sale or exchange of any product in whole or in part below the cost of such product to the particular member of the Industry, such cost to be computed according to a cost formula to be prescribed or approved by the Supplementary Code Authority and approved by th>> Administrator; Provided, however, that dropped lines, seconds or inventories which must be converted into cash to meet emergency needs may be disposed of in such manner and on such terms and conditions as are necessary to move such products into buyers' hands not- withstanding any other provisions of this Supplementary Code, provided the Secretary shall have been notified, at least ten days in advance, of such intended sale or other disposition, and of the description, quantity and price thereof with the reason therefor, and the Secretary on the direction of the Supplementary Code Authority has not before the termination of such ten day period, in writing, disapproved the proposed disposal; such disapproval shall be only on the ground of misrepresentation of facts. Provided, further, that selling below cost (as defined in para- graph 1 of this subsection B) to meet existing competition on products of equivalent design, character, quality or specifications shall not be deemed a violation of this Article. C. Using or substituting any material superior in quality to that specified by the purchaser of any product, for the purpose of in- fluencing purchase or future purchase. D. Cancelling in whole or in part, or permitting the cancellation in whole or in part, of any contract of sale of any product, except for justifiable cause or a fair consideration. E. Inducing or attempting to induce the breach of any provision of a contract to which a member of the Supplementary Code is a party. This clause shall not be construed to apply to employment contracts. F. Aiding or abetting any person, iirm, association or corporation in any unfair practice. GL Offering or giving to any purchaser of any product any guar- anty or protection in any form against decline in the market price of such product after the date of shipment. U. Selling or offering to sell special Cap Screws and/or Set Screw- below the price of the corresponding or the next larger or longer standard or listed size Cap Screw and/or Set Screw de- termined in accordance with the provisions of Article V hereof, plus the cost of the special feature or features. I. Soliciting by any member of the Industry the pooling of orders fiom several buyers in a manner to give the buyers advantage of more favorable (trice or terms than those to which the bu3 T ers would be entitled individually. J. Consigning merchandise for any rea.-on whatsoever, except to a wholly owned or controlled subsidiary, or to a direct representa- tive haying a stock subject to control of the manufacturer for pricing, invoicing and terms, or except under circumstances to be defined by the Supplementary Code Authority where peculiar cir- cumstances in the Industry require the practice. 12 K. Making contracts of sale that permit the buyer to cancel and/or provide for a reduced price in event of a market decline, but which do not permit the seller to cancel and/or do not provide for an enhanced price in the event of a market rise. L. Making contracts requiring delivery of specified quantity or quantities in specified time, if demanded by buyer, but not requiring the buyer to accept such quantity or quantities within the specified time. . ; , i M. Making contracts at a specified price for an unspecified quan- tity for delivery as demanded by the buyer during the period unless the contract is for a fixed percentage of the total consumption re- quirements of the purchaser of the particular product; or making any such unspecified quantity contract above described except on a standard form or forms approved by the Supplementary Code Authority and the Administrator; or failing to file with the Secre- tary a copy of each and every different form of contract entered into by a member of the Industry within five days after entering into a contract in such form. N. Making contracts for periods in excess of three months (all contracts to expire not later than the last days of March, June, September or December) or quoting on or making any quarterly contract more than thirty (30) days prior to the first day of the calendar quarter covered by the contract, or shipping pursuant to any contract more than fifteen (15) days after the expiration thereof, or as soon thereafter as seller can manufacture and ship the same, or making contracts containing an option of extension or renewal on the part of either buyer or seller. O. Accepting orders for deliveries extending beyond four (4) months from date of order. P. Offering any article by price or otherwise in a manner to influence the purchase of another article. Q. Appointing, continuing to employ or paying a commission, salary or any other form of compensation to, a jobber or dealer or sjmdicate buyer of any character as an agent, except under circum- stances where such jobber, dealer or syndicate buyer acts clearly as an agent and does not simultaneously perform the functions of a jobber, dealer or syndicate buyer in a specific transaction or trans- actions, or entering into any kind of an exclusive territory arrange- ment with a jobber, dealer or syndicate buyer. R. Continuing to employ any salesman, agent or employee who shall give any or all of his commission to any purchaser. Article VIII — Monopolies No provision of this Supplementary Code shall be applied so as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. Article IX — Modifications Section 1. This Supplementary Code and all the provisions there- of are expressly made subject to the right of the President, in accordance with provisions of subsection (b) of Section 10 of the 13 Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under said Act. Section 2. This Supplementary Code, except as to provisions required by the Act, may l>e modified or amended on the basis of experience or changes in circumstances, such modi Heat ions 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 and be a part of this Supplementary Code on approval by the President. Article X — 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 in- creases except such as may be required to meet individual costs should be delayed, but when made, such increases should, so far as possible, be limited to actual additional increases in the seller's costs. Article XI — Effective Date This supplementary Code shall become effective at 12 : 01 o'clock A. M. Eastern Standard Time of the tenth day after it is approved by the President, and shall continue in effect until June 1G, 1925, 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. 84. Supplement No. 19. Registry No. 1104-05. o UNIVERSITY OF FLORIDA IIIIlllllllWlWIlll 3 1262 08855 8910