Approved Code No. 347 — Supplement No. 7 Registry No. 1399—54 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE BEATER AND JORDAN AND ALLIED EQUIPMENT INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON MAY 14, 1934 WE DO OUR PART UNIV. OF FL 111 U.S. DEPOSSTORf^"^^ ^'^^'^^^ IINTING 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, Washin.Erton, 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. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla. : Chamber of Commerce Building. Kansas City, Mo. : 1028 Baltimore Avenue. Los Angeles, Calif. : 1163 SoutJi Broadway. Louisville, Ky. : 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La. : Room 225-A, Customhouse. New York, N.Y. : 734 Customhouse. Norfolk, Va. : 406 East Plume Street. Philadelphia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. Portland, Oreg. : 215 New Post Office Building. St. Louis, Mo.: 506 Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle, Wash.: 809 Federal Office Building, Approved Code No. 347 — Supplement No. 7 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE BEATER AND JORDAN AND ALLIED EQUIPMENT INDUSTRY As Approved on May 14, 1934 ORDER SiTPPLEMENTARY CODE OF FaIR COMPETITION FOR THE BeATER & Jordan & Allied Equipment 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 Indus- trial Recovery Act, approved June 16, 1933, for approval of a Sup- plemental Code of Fair Comj)etition for the Beater & Jordan & Allied Equipment Subdivision of Machinery and Allied Products Industr3^ and hearings 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, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, 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 Supplemental 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 Supplemental Code of Fair Competition be and it is hereby approved subject to the following conditions : 1. That the Beater & Jordan & Allied Equipment Manufacturers Association shall amend its Articles of Association to the satisfac- tion of the Administrator within the time set forth in the Order of the Administrator, dated April 26, 1934, which order extended the original period of thirty (30) days set forth in the Executive Order of March 17, 1934, approving the Basic Code of Fair Compe- tition for the Machinery and Allied Products Industry. 2. That the provisions of Article VIII, Section (a), insofar as they prescribe a Avaiting period between the filing with the Code Authority (or such agency as may be designated in the Supplemental Code) 59024° 544-83 34- (i) 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. 3. That the provisions of Article VIII, Section (e) be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution of the products of the Subdivision to the Administrator. Hugh S. Johnson, Admjinistrator for Industrial Recovery. Approval recommended : A. R. Glancy, Division Administrator. Washington, D.C, May U, 193^. REPOKT TO THE PRESIDENT The President, The White House. Sir: Tliis report relates to the Supplemental Code of Fair Com- petition for the Beater & Jordan & Allied Equipment Subdivision of Machinery and Allied Products Industry as proposed by the Beater & Jordan & Allied Equipment Manufacturers Association. A public hearing was held in AVashington, D. C. on December 6, 1933 and reconvened on December 21, 1933. The public hearings were conducted in accordance with the provisions of Title I of the National Industrial Recovery Act and all persons were given full opportunity to be heard. GENERAL STAlTiMENT The Beater & Jordan & Allied Equipment Subdivision, being truly representative of the manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in the second paragraph 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 Subdivision as defined in the Supplemental Code includes the manufacture and sale of beaters and jordans and allied equipment. ECONOMIC EFFECT Annual sales in 1932, according to the Association, were approxi- mately one-third the 1929 level. They declined from $5,185,000 in 1929 to $1,617,000 in 1932. The Subdivision has estimated sales for 1933 to be $1,455,000, which indicates a decline of 10 per cent from the 1932 level. Estimates of approximate employment for the entire Subdivision submitted by the Trade Association, indicate that employment declined from 900 in 1929 to 454 in 1932, or 49.6 per cent. Employ- ment in 1933 increased to 583, or 28.4 per cent. No figures are available on the full-time hours per week for the entire Subdivision. A summarized tabulation of questionnaires returned by the industry shows that in June, 1929, the average work- ing time was 8 to 11 hours per day; in June, 1933, 8 to 10 hours per day; and in October, 1933, 7 to 9 hours per day. In October, 1933, the Subdivision was working two shifts. Average hours per week were reported to be 51.6 in June, 1929; 43.5 in June, 1933 ; and 39.7 in October, 1933. In October, 1933, the average hours were 2)3.1 per cent less than the June, 1929, average. The effect of the 40-hour provision with production at more nor- mal levels may be estimated on a basis of the 1930-1931 average of (3) total man-hours per week divided by the number of hours prescribed by the Code. After 1929, man-hours declined steadily from 46,440 to a minimum of 13,670 in 1932, or 70.6 per cent. Since then, man- hours have increased to 23,620, or 72.8 per cent. If it is assumed that the 26,475 average man-hours for 1930-1931 are representative of the volume of production for those years, and a reasonable measure of man-hour requirements in a more normal period, the adoption of the 40-hour week would require a force of approximately 660 employees, or 73 per cent of the 1929 working level. However, owing to the impossibility of all employees of the Subdi- vision working the maximum 40 hours, the average work week will be shorter, say 36 assumed effective hours, and the employment cor- respondingly greater, viz : 735 workers will be required to produce the 1930-1931 volume. The minimum wage provisions proposed for the subdivisions which are operating under the Code of the Machinery and Allied Products Industry are based on a flat minimum hourly rate of 32 cents per hour for the South and the following city population differentials for all other sections of the United States: Over OO.OW population . 40 cents per hour Over 10,000 to 50.000 population 38 cents per hour 10,000 population and under 86 cents per hour In addition to the minimum wage rates shown above, the Code provides that women engaged in substantially the same work as men shall receive the same rate of pay as such men employees; that the minimum wage for women employees employed in plant opera- tions shall not be less than 87.5 per cent of the proper rate for the locality in which employed as specified; and that the minimum in the South shall be not less than 32 cents per hour. Estimated number of factory workers receiving less than designated hourly rates Proposed minimum hourly rates Distribution of factory workers receiving less ttian the mini- mum regardless of location Approximate percent Approximate number 40 cents (other U.S.) 38 cents (other U.S.) 36 cents (other U.S.) 32 cents (South) 44.4 39.3 34.7 20.9 150 132 117 70 Based on the distribution as of Jime 15, 1933 and on the specified percentages of the number of factory workers receiving less than the designated rates shown in the above table, the adoption of the proposed minimum rates will probably cause an increase in factory payrolls. The estimated increase as of June 15, 1933, regardless of location of the workers, will probably, under the most favorable conditions, not exceed 9.0 per cent assuming only upward adjustment in the brackets below the 40 cent minimum and no change in man- hour requirements. RESUME OF SUPPLEMENTAL CODE Article I states the purposes of the Supplemental Code. Article II sets forth certain definitions. 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 on the seventeenth day of March, 1933, and as from time to time amended. Article IV provides for the adoption of Article II, VI, VIII, and IX of the National Industrial Recovery Code of the Machinery and Allied Products Industry, in accordance with the conditions in this Article g-overning their adoption. Article V provides for the establishment of a Code Authority and defines its powers and duties. Article VI provides for the establishment of a uniform accounting system and method of cost finding and/or estimating to be used by all employers in the Subdivision. Article VII provides that no products of the Subdivision shall be sold or exchanged below a reasonable cost when the Code Authority determines that an emergency exists. Article VIII provides for the filing of prices with the Code Au- thority and for the dissemination of price information by the Code Authority. Article IX defines certain trade practices as being unfair methods of competition and provides that these practices be eliminated. Article X provides for the exclusion of direct export sales from the provisions of the Supplemental Code concerning pricing and marketing of the products of the Subdivision. Article XI contains the method by which the Code ma}' be modified or amended. Article XII contains the provisions in reference to monopolies and discrimination against small enterprises required by the Act. Article XIII states the effective date of the Supplemental Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter: I find that : (a) Said Supplemental Code is well designed to promote the poli- cies 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 organization of industry for the purpose of cooperative action among the trade groups b}^ inducing and maintaining united action of labor and man- agement under adequate governmental sanctions and supervision, b}^ 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 re- ducing 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 me as a major industry. (c) The Supplemental Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforsesaid Subdivision ; and that said association 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 elim- inate 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 aj^proval of said Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code, provided that certain provisions relating to price publication are stayed ; that the Articles of Association of Applicant be revised as stated in the Order; and that Section (e) of Article VIII be stayed pending submission of satisfactory evidence concerning dis- tribution of the products of the Subdivision to the Administrator. Respectfully, Hugh S. Johnson, A d minis trot or. May 14, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE BEATER & JORDAN & ALLIED EQUIPMENT IN- DUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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- plemental Code for the Beater & Jordan & Allied Equipment Manufacturing Subdivision of the Machinery and Allied Products Industry, and together with the National Industrial Recovery Code of Machinery and Allied Products Industry to which it is a Supple- ment shall be the standard of fair competition for this subdivision, and shall be binding on each employer therein. Article II — Definition "Applicant " means the Beater & Jordan & Allied Equipment Manufacturers Association of the Pulp and Paj^er Industiy. a trade organization, all members of which are engaged in the manufacture for sale of the products of the Beater & Jordan & Allied Equipment Manufacturing Subdivision of the Machinery and Allied Products Industry, which organization is truly representative of this Subdivi- sion. " Industry " means the Machinery and Allied Products Industry, as defined in its National Industrial Recovery Code as approved by the President, March 17, 1934 and as such definition may from time to time be amended. " Subdivision " means this Beater & Jordan & Allied Equipment Manufacturing subdivision of the Machinery and Allied Products Industry as defined and set forth in Paragraph 3 of Article II of the National Industrial Recovery Code of the INIachinery and Allied Products Industry as follows : " Beater & Jordan & Allied Equipment Subdivision " means the manufacture for sale of Beaters & Jordans & Allied Equipment and parts thereof, and includes all those engaged in such manufacture for sale. " Code " means the National Industrial Recovery Code of the Ma- chinery and Allied Products Industry, as approved by the President, and as from time to time amended. " Person " means a natural person, a partnership, a corporation, an association, a trust, a trustee, a trustee in bankruptcy, a receiver, or other entity. " Employer '' means any person engaged in this Subdivision of the Industry, either on his own behalf or as an employer of labor. (7) 8 " Employee " means any one who is employed in the subdivision by any such employer. " The Act " means Title I of the National Industrial Recovery Act. " The President " means the President of the United States. " The Administrator " means the Administrator for Industrial Recovery, " Basic Code Authority " means the Code Authority for the Ma- chiner}^ and Allied Products Industry as constituted by the Code. " Code Authority " means the Code Authority constituted for this subdivision as provided by the Code and bj^ this Supplemental Code. " Group Code Authority " means the Code Authority for any group or classification of products within this subdivision, consti- tuted under the authority of Article V of this Supplemental Code. " Publish " means to make available to the public. 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 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 cf Code The following Articles of the Code, viz : Article II, " Definitions " ; Article VI, "Administration ", to the extent that they shall be ap- plicable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code ; Article VIII, " Modifications and Termination " ; and Article IX, " Withdrawal " ; are made a part of this Supplemental Code with the same effect as if they were written into this Supplemental Code, except as herein modified. Article V ^ — Organization and Administration (a) To administer, supervise and facilitate the performance of the provisions of this Supplemental Code, there is hereby established a Code Authority which shall consist of not less than seven (7) nor more than nine (9) members, seven (7) of whom are to be appointed by the Executive Committee of the Applicant. 1. One (1) additional member to be selected in any fair manner, with the approval of the Administrator, by employers in this subdi- vision not members of the Applicant, who are cooperating under this Code as described in Section (d) hereof, if so desired by such non- members. 2. The Administrator may, at his discretion, appoint one (1) additional member without vote and without expense to the Sub- division. (b) The Code Authority shall adopt rules and regulations for its procedure and employ such personnel as it maj^ deem necessary. (c) Any employer in this Subdivision shall be eligible for mem- bership in the Applicant. * See paragraph 2 (1) of order approving this Code. Any employer in this Subdivision shall be entitled to vote subject to provisions of Section (a) hereof at election of, and share in, the benefits of the activities of the Code Authority, and may participate in any endeavors of the Applicant and Code Authority in the prepa- ration of any revisions of, or additions or supplements to this Sup- plemental Code, subject to provisions of this Section (a) and Sec- tion (d) of Article V. (d) Each employer in this Subdivision, subject to the jurisdiction of this Supplemental Code and acceptino; the benefits of the activi- ties of the Code Authority hereunder, shall pay to the Code Au- thority his proportionate share of the amounts necessary to pay the cost of assembling, analyzing, and publication of such reports and data and of the maintenance of the Code Authority in connection with its activities relative to the preparation and administration of this Supplemental Code, said proportionate share to be based upon the volume of shipments for the next preceding calendar year and/or such other factors as the Code Authority may prescribe and the Administrator may approve. (e) With a view to keeping the President informed, as to the observance or non-observance of this Supplemental Code, and as to whether this subdivision is taking appropriate steps to effectuate the declared policy of the Act, each employer shall prepare and file with such person or organization as Code Authority may designate, and at such time and in such manner as may be by Code Authority pre- scribed (to be held and used subject to the limitations of this Article V), statistics of plant capacity, volume of production, volume of sales in units and dollars, orders received, unfilled orders, stocks on hand, inventories, " raw and finished ", number of employees, wage rates, employee earnings and hours of work and such other data or information as the Code Authority, subject to review by the Admin- istrator, may from time to time require. Code Authority shall file with the Basic Code Authority such of the data and statistical information referred to in preceding para- graph as may be required. In addition to information required to be submitted to Basic Code Authority, there shall be furnished to Government agencies such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act. (f) Except as otherwise provided in the Act, all statistics, data and information filed in accordance with the provisions of this Sup- plemental Code shall be confidential; provided, however, that noth- ing herein shall prevent the publication of general summaries of such statistics, data and information. The statistics, data and information of one emploj^er shall not be revealed to any other employers, except that, for the purpose of administering or facilitating the enforcement of the provisions of this Supplemental Code, Code Authority, by its dul}' authorized representatives (who shall not be an employer nor in the employ of any employer affected by this Supplemental Code), shall have access to any and all statistics, data and information, that may be furnished in accordance with the provisions of this Supplemental Code. 10 (g) Aggregations of employers having a common interest and common problems may be grouped by Code Authority for adminis- trative purposes. There shall be a Group Code Authority ap- proved or appointed by Code Authority for each such group. If formal complaint is made to Code Authority that provisions of this Supplemental Code have been violated by any employer, the Code Authority, or proper Group Code Authority, may cause such investigation or audit to be made, to the extent permitted by the Act, as may be deemed necessary. If such investigation is made by Group Code Authority it shall report the results of such investi- gation or audit to Code Authority for action. Code Authority shall have the right, to the extent permitted by the Act, to analyze any transaction coming under the scope of this Supplemental Oode, on which any unfair competition is alleged, to show evidence of any violation of this Supplemental Code, to report any such alleged violation to the proper authorities for action. (h) It is, however, expressly provided that the jurisdiction of Code Authority under this Supplemental Code over any employer shall be limited to that portion of the business and employment of such employer which is within this Subdivision. (i) 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 Administrator may provide such hear- ings as he may deem proper; and thereafter if he 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 apiDropriate modification in the method of selection of the Code Authority, or any Group-Code Authority. Article VI — Accounting and Costing The Supplemental Code Authority shall cause to be formulated an accounting system and methods of cost finding and/or estimating capable of use by all employers of the Subdivision. After such sys- tem and methods have been formulated, full details concerning them shall be made available to all employers. Thereafter all employers shall determine and/or estimate costs in accordance with the prin- ciples of such methods. Article VII — Reasonable Cost When the 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 Code, the Code Authority may cause to be determined the lowest reasonable cost of the products of this indus- try, 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 period of the emergency, it shall be an unfair trade practice for any mem- ber 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 11 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 Code Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. Article VIII — Price Lists (a) If and when the Code Authority determines that in any group of the Subdivision it ha*, been the generally recognized practice to sell a specified product on the basis of not price lists or price lists with discount sheets and fixed terms of sale and payment, each manufacturer of such product shall, Avithin ten (10) days after notice of such determination, file with Code Autliority a net pric§ list, or a price list with discount sheet, as the case may be, individu- ally prepared by him showing his current prices or prices and dis- counts including f.o.b. points and terms of sale and payment, and the Code Authority shall immediately publish the same and send copies tJiereof to all known manufacturers of such specified products who are cooperating in the administration of this Supplemental Code. Revised price lists and/or discount sheets and/or terms of sale and payment may be filed from time to time thereafter with the Code Authority by any manufacturer of such product, to become effective ten (10) days from date of filing with Code Authority, unless Code Authority sliall authorize a shorter period, and copies thereof with notice of the effective date specified, shall be immediately published and made available to interested parties and sent to all known manu- facturers of such product who are cooperating in the administration of this Supplemental Code, any of whom may file, if he so desires, revisions of his price lists and/or discount sheets and/or terms of sale and payment, which shall become effective upon the date when the revised price list and/or discount and/or terms of sale and pay- ment sheet first filed shall go into effect.^ (b) If and when Code Authority shall determine that in any group of the subdivision not now selling its product on the basis of price lists and/or discount sheets, with fixed terms of sale and payment, the distribution or marketing conditions in the group are the same as, or similar to, the distribution or marketing conditions in a group where the use of price lists and/or discount sheets and fixed terms of sale and payment is well recognized, and that a system of selling on net price lists or price lists and discount sheets with fixed terms of sale and payment should be put into effect in such group, then each manufacturer of the product or products of such group shall within twenty (20) days after notice of such determination file with Code Authority net price lists or price lists and discount sheets, including f.o.b. points and fixed terms of sale and payment, showing his prices and discounts and terms of sale and payment, and such price lists and/or discount sheets and/or terms of sale and payment shall be immediately published and sent to all known employers and may be thereafter revised in the manner hereinbefore provided. Pro- vided that Code Authority sliall make no determination to place any "See paragraph 2 (2) of order approving this Code. 12 product of the Subdivision (not now on a price-list basis) on a price list basis, as provided in this paragraph (b) or Article VIII, unless two thirds of the employers (cooperating in this Code as provided in Article V (d) ) who are at that time engaged in manufacturing such products shall affirmatively consent tliat such determination be made. (c) To the extent permitted by the Act, Code Authority shall have power, on its own initiative, or on the complaint of any employer, to investigate any price and/or terms of sale and payment for any prod- uct shown in any price list and/or discount and/or terms of sale and payment sheet so filed with Cocle Authority by any employer. (d) No employer shall sell directly or indirectly by any means whatsoever any product of the subdivision covered by provisions of this Article VIII at a price or at discounts or on terms of sale and payment different from those provided in his own current net price lists, or price lists and discount and/or terms of sale and payment sheet. (e) No emploj^er shall sell to or through any distributor who shall fail to agree to resell in accordance with Articles VII, VIII and IX of this Supplemental Code.^ Article IX — Trade Practices Unfair trade practices shall be deemed to be practices or acts which by subterfuge, concealment, misrepresentation, or by dis- crimination, result or tend to result in selling at other than pub- lished prices, or in deceiving or misleading purchasers, or in mis- representing the products of competitors. Any deviation from the standards as set forth in this Article IX, or any amendments thereto, by any member of the Industry, either directly or indirectly through his agents, shall be considered as unfair method of competition and a violation of this Code. The following specific practices are examples of unfair methods of competition as defined above : EnLE 1. No member of this subdivision shall secretly offer or make to any customer, agent, fiduciary or representative of customer any payment or allowance of a rebate, refund, commission, credit, un- earned discount or excess allowance, whether in the form of money or otherwise, nor shall a member of the Industry secretly offer or extend to any customer any sjoecial service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. Rule 2. No member of this subdivision 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 employee, agent, or repre- sentative of another in relation to the business of the employer of such employee, the principal of such agent, or the represented party, without the knoAvledge of such employer, principal, or party. Com- mercial bribery provisions shall not be construed to prohibit free and general distribution of articles commonly used for advertising, except so far as such articles are actually used for commercial bribery as above defined. » See paragraph 2 (3) of order approving this Code. 13 Rule 3. Untruthful advertising, representing, or marking any product, with intent to deceive or mislead. Rule 4. Wrongfully enticing away the employees of competitors with the purpose and effect of unduly hami^ering, injuring, or em- barrassing competitors in their business. Nothing in this paragraph shall be so interpreted as to in any manner restrict the right of any employee to seek employment with any employer at any time. Rule 5. ]\Iaking or causing or permitting to be made or published any false, untrue, or deceptive statement b}' way of advertisement or otherwise concerning the grade, quality, quantity, capacity, substance, character, nature, origin, size, or preparation of any product of this subdivision, having the tendency and capacity to mislead or deceive purchasers or prospective purchasers. Rule 6. The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, question- able credit standing, or by other false representations, or the false disparagement of the grade or quality of their goods, with the tend- ency and capacity to mislead or deceive purchasers or prosi>ective purchasers. Rule 7. Allowing on used equipment in connection with a sale of new equipment more than the scrap value of such used equipment or more than the price at which the employer expects to resell such used equipment, whichever is the greater, which allowance shall be reported to the Code Authority iimnediately. Rule 8. Inducing or att