V Approved Code No. 84 — Supplement No. 14 Registry No. 1129—1—14 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE NON-FERROUS HOT WATER TANK MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON APRIL 4, 1934 WE DO OUR PART UNIV. OF FL Lli. DOCUMENTS DEFT. ( A it ' rt *--.. J U.S. 0EPOWTORY 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 tLe 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, Alass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. 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Approved Code No. 84 — Supplement No. 14 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE NON-FERROUS HOT WATER TANK MANUFACTURING INDUSTRY As Approved on April 4, 1934 ORDER Approving Supplementary Code of Fair Competition for the Non-' Ferrous Hot Water Tank JNIanutacturing Industry A DIVISION of the FABRICATED METAL PRODUCTS MANUFACTURING AND metal FINISHING AND METAL COATING INDUSTRY I 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 jn-ovisions of Section I of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and INIetal Coating Industry, approved November 2, 1933, for approval of a Su])plementary Code of Fair Competition for the Non-Ferrous Hot Water Tank Manufacturing Industry, and hearing having been duly held thereon ; and the annexed report on said Supplementary! Code, containing findings with respect thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the United! States, I, Hugh S. Johnson, Administrator for Industrial Recovery,' pursuant to authority vested in me by Executive Orders of the 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 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; provided, however, that the provisions of Article VII, Paragraph (a), insofar as they prescribe a waiting period between the filing with the Code Authority and the effective date of revised price lists or revised terms and conditions of sale be and they are hereby stayed pending my further Order either within a period of 51240° 482-19 34 (1) sixty days from the effective date of this Supplementary Code or after the completion of a study of open price associations now being conducted by the National Recovery Administration. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glanct, Division Administrator. Washington, D.C, April 4, 193^. REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Supplementary Code of Fair Com- petition for tlie Xon-Ferrons Hot Water Tank Manufacturing In- dustry, 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., January 19, 1934, in. accordance Avith the provisions of Title I of the National Indus- trial Recovery Act. GENERAL STATEMENT The Non-Ferrous Hot Water Tank ISIanufacturing Industry, being truly representative of this division of the Fabricated Metal Products JNIanufacturing 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 Sec- tion 1 of Article VI of the Basic Code, for the Fabricated Metal Products ^Manufacturing and Metal Finishing and Metal Coating Industry approved b}^ 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 emplo3'ed in the Sup- plewientary Code. Article III. This Industry is a division of the Fabricated Metal Products ISIanufacturing 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 Supplementaiy Code Authority consist- ing of five (5) members to be elected by the members of the Indus- try' at a meeting called by the Temporary Supplementary Code Au- thority, and gives the Admini,strator the authority to appoint one ad- ditional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. Article V provides for an accounting system and methods of cost finding and/or estimating. Article VI provides for determining the lowest reasonable cost of the products of this Industry. Article VII provides methods of setting up and revising price lists. Article VIII 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 IX contains the mandatory provisions contained in Section 10 (b) and also provides for the submission of proposed amendments to the Supplementary Code. (3) Article X recognizes that price increases be limited to actual addi- tional increase in the seller's costs. Article XI provides against monopolies and monopolistic practices. Article XII states the effective date and duration of this Supple- mentary Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter : I find that : (a) Said Supplementary Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free 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 purposes of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervi- sion, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of in- dustries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of indus- trial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Industry normally employs not more than 50,000 eni- ploj^ees; and is not classified by me as a major industry. (c) The Supplementary 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 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 per- mit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not elimi- nate 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, AdiTiinistrator. Apkil 4. 1934. SUPPLEMENTARY CODE OF FAIE COMPETITION FOR THE NON-FERROUS HOT WATER TANK MANUFAC- TURING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as the Sup- plementary Code of Fair Competition for the Non-Ferrous Hot Water Tank Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Prod- ucts Manufacturing and Metal Finishing and Metal Coating Industry approved by the President of the United States on the second day of November, 1933, and the provisions of this Supplementary Code shall be the Standard of Fair Competition for and shall be binding upon every member of the Industry. Article II — Definitions The term "Non-Ferrous Hot W^ater Tank Manufacturing In- dustry " hereafter referred to as the " Industry •' is defined to mean the manufacture for sale of copper and other non-ferrous metal range boilers, storage tanks and tanks for automatic and non-auto- matic water heaters for working pressure of over fifty (50) pounds per square inch restricted to sizes not exceeding one hundred nineteen (119) gallons' capacity. The term " member of the Industry " as used herein, includes, but without limitation, any individual, partnership, association, cor- poration, or other form of enterprise engaged in the Industry, either as an employer or on his or its own behalf. The term " employer ", as used herein includes anyone by whom any such employee is compensated or employed. The term " emploj^ee ", as used herein includes anyone engaged in the Industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation. The term " Federation ", as used herein is defined to mean the Fabricated Metal Products Federation or its successor. The terms " President ", "Act " and "Administrator ", as used herein shall mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Adminis- trator for Industrial Recovery under Title I of said Act. The term " Basic Code ", as used herein, is defined to mean the Basic Code of Fair Competition for the Fabricated Metal Products (5) 6 Manufacturing and Metal Finishing and Metal Coating Industry, as approved by the President on the second day of November, 1933. The term " Supplementary Code Authority ", as used lierein, means the agency which is to administer this Supplementary Code as here- inafter provided. The term "Association ", as used herein, is defined to mean Non- Ferrous Hot Water Tank Manufacturers Association or its successor. The term " Supplementary Code Committee ", as used herein, is defined to mean the committee appointed by the Board of Directors of the Non-Ferrous Hot Water Tank Manufacturers Association to present this Supplementary Code. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Man- ufacturing and Metal Finishing and Metal Coating Industry, and without limitation the wage, hour and labor provisions in Article III of its Basic Code as approved by the President November 2, 1933, including Section 1 of said Article III by which the provisions of Sub-sections (1), (2), and (3) of Section 7 (a) of Title I of the Act are made conditions of this Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV— Organization and Administration Section 1. During the period not to exceed sixty (60) days fol- lowing the effective date, the Supplementary Code Committee of the Industry shall constitute a temporary Supplementary Code Au- thority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of five members to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten (TO) days' notice sent by registered mail to all known members of the Industry, who may vote either in person or by proxy. The members of the Supplemen- tary Code Authority first elected shall serve until the following annual meeting of the Association, and thereafter, members of the Supplementary Code Authority shall be elected at each annual meeting of the Association to serve until the following annual meet- ing. The members of the Supplementary Code Authority shall be elected in the following manner: (a) One member who shall be a member of the Industry by a majority vote of all members of the Industry present in person or by proxy, each member to have one vote. (b) One member who is not a member of the Association by a majority vote of all members of the Industry, present in person or by proxy, each member to have one vote. (c) Three members by a fifty-one percent (51%) vote of mem- bers of the Association, present in person or by proxy, weighted on the basis of one vote for each member and one additional vote for each one thousand (1,000) gallons of sales in the previous calen- dar year reported to the Supplementary Code Authority ; Provided, however, that no one member may cast more than 331/^ percent of total number of votes cast. A vacancy in the membership of the Supplementary Code Au- thority may be filled by a majority vote of the remaining members of the Supplementary Code Authority, provided, however, that the right to vote, as set forth above, shall be subject to the limitations provided in Section 4 of this Article. In addition thereto the Administrator may appoint a member of the Supplementary Code Authority who shall be without vote. The representative who may be appointed by the Administrator shall be given reasonable notice of all meetings and may sit at all meetings of the Supplementary Code Authority. Section 2. Any Association directly or indirectly participating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions on membership, and (2) shall use due diligence in submitting to the Administrator true copies of its Articles of Association, By-Laws, Regailations and any amend- ments when made thereto, together with such other information as to membership, organization, and activities as may be reasonably necessary to effectuate the purposes of the Act. Section 3. In order that the Supplementary^ Code Authority shall, at all times, be truly representative of the Industry and in other respects comply with the provisions of the Act, the Administrator may prescribe such hearings as he may reasonably 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 the removal of any or all the members thereof and may make an appropriate modification or modi- fications 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 through a confidential agent, to collect and distribute all statistical reports of the Industry. With a view to keeping the President informed as to the observance or non-observance of this Supplementary Code, said agency shall collect through its confiden- tial agent such statistics as are 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 organization as the agency administering this said Basic Code. Section 5. Nothing contained in this Code shall constitute the members of the Supplementary Code Authority partners for any purpose. Nor shall any member of the Supplementary Code Au- thority be liable in any manner to anyone for any act of any other member, officer, agent or employee of the Supplementary Code Au- thority. Nor shall any member of the Supplementary Code Au- thority, 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 wilful misfea- sance or non-feasance. Section 6. The Supplementary Code Authority, through its confi- dential agent, shall also, from time to time, furnish to the Basic Code Authority, designated in said Basic Code, such information as may be required to be furnished under the terms of said Basic Code. Section 7. The Supplementary Code Authority shall have all the powers and duties Avhich shall be necessary or proper to enable it to fully administer this Supplementary Code and to effectuate its purpose. Without limitation to the foregoing or any other powers or duties provided for in this Supplementary Code the Supplementary Code Authority shall have the following specified duties : (a) To adopt By-laws and rules and regulations for, and keep records of its j^rocedure and for the administration and enforcement of the Supplementary Code. (b) 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. (c) To make recommendations to the Administrator for the coord- ination of the administration of this Supplementary Code with such other codes, if anj^, as may be related to the Industry. (d) The Supplementary Code Authority shall have general power and supervision over the enforcement of the provisions of this Sup- plementary Code and they are hereby designated as the agency for administering, supervising and promoting the observance of the provisions of this Supplementary Code, and shall have power to obtain from all members of the industry such data as may be neces- sary for the complete administration of the provisions of this Supplementary Code. (e) Each member of the Industry subject to the jurisdiction of this Supplementary Code shall pay to the Supplementary Code Au- thority or its agent his or its proportionate share of the amount necessary to pay the cost of assembling, analyzing, and publication of such reports and data and of the maintenance and operation of the Supplementary Code Authority in connection with its activities _ relative to the administration of this Supplementary Code ; said proportionate share to be based upon the net sales and/or such other equitable factors as the Supplementary Code Authority may prescribe. (f ) To cooperate with the Administrator in regulating the use of any NRA insignia solely by those members of the Industry wdio have assented to, and are complying with, this Supplementary Code. To require tliat any article manufactured by those members of the In- dustry who have assented to and are complying with this Supple- mentary Code shall bear the NRA insignia. Section 8. If the Administrator shall determine that any action of a Code Authority or agency thereof maj^ be 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 and further consideration by such Code Authority or agency pending final action which shall not be effective unless the Administrator approves or unless he shall fail to disap- prove after thirty days' notice to him of intention to proceed with such action in the original or modified form. Section 9. Each member of the Industry subject to the jurisdiction of this Code shall comply with all requirements of the Supplemen- tary Code Authority made or taken pursuant to the provisions of this Code, and the failure of any member of the Industry within a reason- able time so to do, shall constitute a violation of the Code. Article V — Accounting and Costing With respect to that portion of his jjroduct which is within the Industry, every employer shall use an accounting system for deter- mining his allowable cost which conforms to the principles of, and is at least as detailed and complete, as, the uniform method of ac- counting, and the uniform method of costing, to be formulated by the Supplementary Code Authority and approved by the Adminis- trator. Article VI — Selling Below Cost No employer shall sell or exchange any product of the Industry, manufactured by him, at a price, or upon terms and conditions, Avhich will result in the purchaser paying for the goods received, less than the allowable cost thereof to the seller, determined in accord- ance with a uniform method of costing above described; provided, however, that dropped lines, or seconds, or inventories which must be converted into cash to meet emergency needs may be disposed of by any emploj'-er, at any price and on any terms and conditions, but only if such employer, not less than two weeks before such dis- posal, has filed with the Supplementary Code Authority, a state- ment in writing setting forth the fact of, and reasons for, such proposed disposal; and provided further, that the Supplementary Code Authority, upon application to it may grant permission to any employer to sell below his costs in order that he may meet competitive prices filed in accordance with the provisions of Article VII of this Supplementary Code, or to meet competition from prod- ucts of equivalent design, character, quality, or specifications, manu- factured outside the United States. Provided further that no provision of this Code relating to prices or terms of selling, shipping or marketing, shall apply to export trade or sales or shipments for Export Trade. Unless and to the extent that the Supplementary Code Authority shall otherwise de- termine, the sale of any products by any member of the Industry for direct shipment to the Phillippines, Hawaii or Porto Rico or other insular possessions of the United States of America shall not be deemed export trade. Article VII — Price Lists (a) Each member of the Industry shall within ten (10) days after the effective date of this Supplementary Code, file with the Supplementary Code Authority a net price list, or a price list and discount sheet, as the case may be, individually prepared by him, and in such form as the Supplementary Code Authority may pre- scribe showing his current prices, or prices and discounts, and terms 10 of sale and pa3'ment, and the Supplementary Code Authority shall immediately send copies thereof to all known manufacturers of such specified product. Such price lists shall be available to all interested buyers at the office of the Sujjplementar}^ Code Authority. Kevised price lists and/or discount sheets and/or all other condi- tions of sale may be filed from time to time thereafter with the Sup- plementary Code Authority by any manufacturer of such product, to become effective upon the date specified therein, but such revised price lists and/or discount sheets and/or all other conditions of sale shall be filed with the Supplementary Code Authority ten (10) days in advance of the effective date. Copies of such revised price lists and/or discount sheets and/or all other conditions of sale with notice of the effective date specified, shall be immediateh^ sent to all known manufacturers of sucli product, who are complyinj^ with all the provisions of this Supplementary Code, any of whom nuiy file if he so desires, to become effective upon the date when the revised price list and/or discount sheet and/or all other conditions of sale first filed shall go into effect, revisions of his price lists, and/or discount sheets and/or all other conditions of sale establishing prices or prices and discounts not lower or conditions of sale not more fa- vorable than those established in the revised price lists and/or dis- count sheets and/or all other conditions of sale first filed. Such price lists shall be available to all interested buyers at the office of the Supplementary Code Authority.^ (b) No member of the Industry shall sell or exchange any prod- uct of the Industry at prices lower or discounts greater or on more favorable terms of paj^ment than the price lists of such member on file at the office of the Supplementary Code Authority as above provided. (c) The Supplementary Code Authority shall have power, on its own initiative, or on the complaint of any employer, to investi- gate any price or the terms of sale and payment for any product shown in any price list and/or discount sheet filed with the Sup- plementary Code Authority by any employer. Eacli emplo3^er shall furnish the Supplementary Code Authority for distribution with such number of copies of his price lists and/or discount slieets as Supplementary Code Authority may prescribe. Article VIII — Unfair Trade Practices In addition to the Unfair Trade Practices covered by Article V of the Basic Code, excepting A, and for all purposes of this Sup- plementary Code the foDowing described acts shall constitute unfair practices. Any member of the Industry who shall directly or indi- rectly through any officer, employee, agent or representative use or employ any of such unfair practices shall be guilty of a violation of this Supplementary Code. IluLE I. Orders. — All orders shall be accepted or rejected by the manufacturer when received, and all orders not for immediate ship- ment shall be ,signed by the purchaser. Orders for tanks of up to and including 100 gallon capacity for delivery at a date exceeding thirty days from date of order but in no event exceeding ninety days from * See paragraph 2 of order approving this Code. 11 date of order shall be in the sj>ecified contract form prepared by the Supplementary Code Authorit}^ subject to the approval of the Ad- ministrator. Orders for tanks of up to and including 100 gallon cai)acity shall cover specified articles to be delivered on or before thirty days from receipt of order and shall be priced at prices in etfect at date of order. Orders for heater tanks sold to heater manu- facturers shall cover specified articles to be delivered on or before a definite date within ninety days from date of order and shall be priced at prices in effect at date of order. Orders for tanks in excess of 100 gallon capacity for specified jobs shall be accepted at prices in effect at the date of receipt of order for delivery when the specified job is ready. Rule II. Invoices. — All sales shall be invoiced separately with the date of shipment and such invoices, together with credit memoranda and all other documents relating to the sale, shall clearly and ac- curately state all of the essential elements of the sale, including types and sizes of products, quantities, prices, credit terms, discounts, allowances, date of order, date of shipment, and other pertinent in- formation. Copies of invoices, together with credit memoranda and all other sales documents, shall, when requested, be filed with the Supplementaiy Code Authority, and, in the event of a complaint, sworn copies of invoices, credit memoranda and all other sales docu- ments shall be sent immediately to the Supplementary Code Au- thority u[X)n its request. Failure to comply with any of the provi- sions of this rule shall constitute unfair competition and a violation of this Code. Rule III. Standardization of Products. — The Supplementary Code Authority shall make studies for the establishment of classifications, dimensional standards and quality for the products of this Indus- try, in cooperation with some Federal Government Agency, pref- erably the Bureau of Standards of the United States, Department of Conmierce, with the view to their recommendation for adoption by this Industry; such standards when approved by a majority vote of this Industr}' shall become the standards of this Industry within ninety (90) days and thereafter the Industry shall follow such standards. Rule IV. Inspection. — It shall constitute unfair competition for a manufacturer to allow credit on a domestic sale for a defective arti- cle until the fact of such defect shall have been established by an authorized representative of the manufacturer and the goods returned to the manufacturer. Rltle V. Consigned Stocks. — It shall constitute unfair competition to consign stocks of the products of this Industry to jobbers, plumb- ers or similar sellers, except under circumstances to be defined by the Supplementary Code Authority, subject to review and approval of the Administrator, where peculiar circumstances of the Industry require the practice. Rule VI. Definition of Ciostmners. — The Supplementary Code Authority shall, with the approval of the Administrator, set up defi- nitions for the various classes of customers within this Industry. When so approved by the Administrator, quotations, prices, dis- counts, credit terms, allowances or other conditions of sale, shall be made on the basis of such definitions and deviations therefrom shall 12 constitute unfair methods of competition and a violation of this Supplementary Code. Rule VII. Discrhnination. — It shall constitute unfair competition for a manufacturer to discriminate in prices, terms, discounts, allow- ances, guarantees, or in any other way between purchasers of the same class whether the material is sold for purcuiaser's stock, for specific building operations, for federal, state, county or municipal government, or for any other specific purposes; provided, however, that nothing in this code shall be construed to prevent any manu- facturer from selecting his own customers in bona fide transactions. Rule VIII. Secret Rebates. — Withholding from, or inserting in the invoice, or other sales documents, facts which make said documents false records, wholly or in part, of the transaction represented on the face thereof, and/or payment or allowance of secret rebates, refunds, credit, unearned discounts whether in the form of money or other- wise, or the extension to certain purchasers of services or privileges not extended to all purchasers of the same class under like terms and conditions, constitutes unfair competition. Rule IX. Post-Dating and Pre-Dating. — Post-dating or pre-dat- ing quotations, orders, invoices, statements or other sales documents is usually done for the purpose of facilitating unfair competition, and is itself hereby declared to constitute unfair competition. Rule X. Inducing Breach of Contract. — Inducing or attempting to induce the breach of a contract between a competitor and his cus- tomer during the term of such contract, constitutes unfair competi- tion. Provided, that nothing in this Rule shall be taken to prevent a party wdio has quoted on the material involved from calling to the attention of the purchaser, even though the order has been placed and accepted, that the list of materials for w^hich the order has been placed does not conform in size, quantity or quality to the list on which the quotations were solicited. Rule XI. Lump Sum Bidding. — Quoting a total price on any schedule of dissimilar materials which does not show, or which is lower than the sum of the regular unit prices of the articles com- prising the schedule, constitutes unfair competition. Where an ar- ticle consists of two or more parts which themselves are considered units by the Industry, the unit price of the combination article shall not be less than the sum of the unit prices of tlie articles which com- prise it and the invoice shall list each item separately with its price. Rule XII. Trade Marking.- — All products of the Industr}^, ex- cepting parts, shall be plainly branded or marked for identification w^ith a name or trade-mark, in addition to a label, if any, to be on file with the Secretary, in order to avoid deceiving purchasers or prospective purchasers. Misbranding or failure to brand constitutes unfair competition. Rule XIII. Misrepresentation. — Advertising, selling or offering to sell any product of the Industry in such a manner as to deceive pur- chasers or prospective purchasers as to the quantity, quality, grade, size or substance of such product, constitutes unfair competition. Rule XIV. Suhstitution. — The furnishing of articles more or less expensive, of better or inferior qualitj^, or of larger or smaller size than specified without making the proper adjustments in the quoted price and clearly indicating the nature of the substitution on the invoice, constitutes unfair competition. 13 Rule XV. G o-iivmerGial Bribery. — No member of the Industry shall give, permit to be given, or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent or representative of another in relation to the business of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such em- ployer, principal or party. Commercial bribery provisions shall not be construed to prohibit free and general distribution of articles commonl}^ used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. Rule XVI. Protection. — The sale of materials under any form of guarantee against decline in the price of said product, constitutes unfair competition. Article IX — Modificatign Section 1. The President may from time to time cancel or modify any order, approval, license, rule or regulations issued under Title I of the National Industrial Recovery Act. Section 2. This Supplementary Code, except as to provisions re- quired by the Act, may be modified on the basis of experience or changes in circumstances ; such modification to be based upon ap- plication by the Supplementary Code Authority or other representa- tive group within the Industry, to the Administrator and such notice and hearings as he shall specify; and to become effective, as a part of this Code, on approval by the President. Article X — Price Increases Whereas the policy of the Act to increase real purchasing power will be made impossible of consummation if prices of goods and serv- ices increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual cost 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 — Monopolies No provision in this Code shall be interpreted in such a way as to permit conduct or operations tending to promote monopolies or to eliminate or oppress small enterprises, or to discriminate against them. Article XII — Effective Date and Duration This Supplementary Code shall become effective at 12 : 01 o'clock A.M. Eastern Standard Time on the tenth day after it is approved by the President and shall continue in effect until June 16, 1935, or the earliest date prior thereto on which the President shall, by proc- lamation, or the Congress shall, by joint resolution declare that the emergency recognized by Title I of the National Industrial Recovery Act, has ended. Approved Code No. 84 — Supplement No. 14. Registry No. 1129-1-14. o ,;'''1^|,'^SITY OF FLORIDA iiiliillllliillilliil 3 1262 08855 7342