V 
 
 Approved Code No. 347 — Supplement No. 28 
 
 Registry No. 699—19 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 SUPPLEMENTARY 
 CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 WATER SOFTENER 
 AND FILTER INDUSTRY 
 
 (A Division of the Machinery and Allied Products Industry) 
 
 AS APPROVED ON JULY 9, 1934 
 
 WE DO OUR PART 
 
 UNITED STATES 
 
 GOVERNMENT PRINTING OFFICE 
 
 WASHINGTON: 1934 
 
 For sale by the Superintendent of Documents, Washington, D.C. ........ Price 5 cents 
 
This publication is for sale by the Superintendent of Documents, Government 
 Printing Office, Washington, D.C., and by district offices of the Bureau of 
 Foreign and Domestic Commerce. 
 
 DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCK 
 
 Atlanta, Ga.: 504 Post Office Building. 
 Birmingham, Ala.: 257 Federal Building. 
 Boston, Mass.: ISOl 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 South Broad waj'. 
 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.: 400 East Plume Street. 
 Philadelphia, Pa.: 422 Commercial Trust Buihling. 
 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. 28 
 SUPPLEMENTARY CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 WATER SOFTENER AND FILTER INDUSTRY 
 
 As Approved on July 9, 1934 
 
 ORDER 
 
 Supplementary Code of Fair Competition for the Water Softener 
 
 AND Filter Industry 
 
 A division of the machinery and allied products industry 
 
 An application having been d"ly made pursuant to and in full 
 compliance with the provisions of Title I of the National Industrial 
 Recovery Act, approved June 16, 1933, for approval of a Supple- 
 mental Code of Fair Competition for the Water Softener and Filter 
 Subdivision of Machinery and Allied Products Industry, and hear- 
 ings having been duly held thereon and the annexed 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, Adiministrator for Industrial Recovery, 
 pursuant to authority vested in me by Executive Orders of the Presi- 
 dent, 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 re- 
 spects 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 ap- 
 proved, subject to the following condition : that the provisions of 
 Article VIII, Section (a), insofar as they prescribe a waiting period 
 between the filing with the Code Authority (or such agency as may 
 be designated in the Supplemental Code) and the effective date of 
 price lists, as originally filed and/or revised price lists or revised 
 terms and conditions of sale, be and they hereby are stayed pending 
 my further order. 
 
 Hugh S. Johnson, 
 Administrator for Industrial Recovery. 
 
 Approval recommended : 
 Barton W. Murray, 
 
 Division Adm-inistrator, 
 
 Washington, D.C, 
 
 Jidy 9, 1934. 
 
 72043° 829-34 34 (1) 
 
KEPORT TO THE PRESIDENT 
 
 The President, 
 
 The White Hoiise. 
 Sir : This is a report on the Supplemental Code of Fair Competi- 
 tion for the Water Softener and Filter Subdivision of the Machin- 
 ery and Allied Products Industry, a Public Hearing on which was 
 held in Washington, D.C. on December 21, 19o;3. The Hearing was 
 conducted in full accordance with the provisions of Title I of the 
 National Industrial Recovery Act. 
 
 GENERAL STATEMENT 
 
 The Water Softener and Filter Subdivision being truly repre- 
 sentative 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, appix>ved by you on the 
 17th day of March, 1934. 
 
 The Water Softener and Filter Subdivision means the manufac- 
 ture or assembly for sale of zeolite water softeners, lime-soda water 
 softeners, water filters, and products allied thereto, including the 
 zeolite used therein, and parts thereof, and includes all those engaged 
 in such manufacture or assembly for sale. 
 
 ECONOMIC EFFECT 
 
 This Subdivision has been severely affected by the depression. 
 This is evidenced by the steady decline in annual sales since 1929, 
 62% from 1929 to 1932. Research and Planning Division report 
 an estimated further decline of 3% for 1933 below the 1932 level. 
 
 In 1929 the total number of persons emjiloyed in the Subdivision 
 was estimat^^d at 1,000. Based on questionnaire returns employment 
 as of June 15, 1933 represented 55.37o of the 1929 level. 
 
 Ap])roximately 50% of the workers in June 1933 were working 
 more than 40 hours p<?r week; but the average work week in October, 
 1933 was 35.9 hours. With production remaining at present levels, 
 no increase in employment may be expected with the adoption of the 
 40 hour week. 
 
 Approximately 22% of the workers in June, 1933 were receiving 
 less than 40 cents })cr hour. The minimum wage in OctolxM*, 1933 
 ranged between 20 and 25 cents i)er hour. Tlie a(h)])ti(>n of the mini- 
 mum wage of 40 cents per hour, as provided by the Code, is expected 
 to be accompanied by an increase in i)ay rolls. 
 
 The wage i)n)visi<)ns for the Subdivision, which is (>])erating im(]er 
 the Code of the Machinery and Allied Products Industry, j^rovide 
 that employees engaged in plant ojierations shall be jKiid as follows: 
 (1) in cities of more than 50,000 population and their immediate 
 
vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not 
 more than 50,000 population and their immediate vicinity, which 
 cities are not in the immediate vicinity of a city of more than 50,000 
 popuhition, 38 cents per hour; (3) in cities of 10,000 population or 
 less and their immediate vicinity, which cities are not in the imme- 
 diate vicinity of a city of more than 10,000 population, 36 cents per 
 hour, except that employees engaged in plant operations in all lo- 
 calities in the states of Virginia, North Carolina, South Carolina, 
 Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, Loui- 
 siana, Texas, and Oklahoma, shall be paid not less than 32 cents per 
 hour. 
 
 When females do substantially the same work as males or replace 
 males, they shall receive the same pay. However, no female em- 
 ployee shall be paid less than 87i/2% of the proper rate for the lo- 
 cality in which emploj^ed. 
 
 Office boys and girls and apj^rentices shall be paid not less than 
 80% of the minimum wage. 
 
 Employees other than those engaged in plant operations shall 
 receive not less than $15.00 per week. 
 
 The Code requires that no person under sixteen (16) years of 
 age shall be employed in this Subdivision. 
 
 RESUME OF SUPPLEMENTAL CODE 
 
 Article I states the purpose of the Supplemental Code. 
 
 Article II accurately defines specific terms applicable to the Sub- 
 division as used in this Supplemental Code. 
 
 Article III provides for the adoption of the employment provisions 
 of the National Industrial Recovery Code of the Machinery and 
 Allied Products Industry, as approved by you, and as from time to 
 time amended. 
 
 Article IV provides for the adoption of Articles II, VI, VIII, and 
 IX of the Code of Fair Competition for the Machinery and Allied 
 Products Industry, in accordance with the conditions of this Article 
 governing their adoption. 
 
 Article V provides for the establishment of a Code Authority and 
 defines its powers and duties. 
 
 Article VI provides for an accounting system and methods of cost 
 finding and/or estimating. 
 
 Article VII provides that no products shall be sold or exchanged 
 below a reasonable cost when the Code Authority determines that an 
 emergency exists. 
 
 Article VIII provides for methods of setting up, revising, and 
 filing price lists and discount sheets and terms of sale and payment. 
 
 Article IX sets forth trade practices for the Subdivision. 
 
 Article X establishes that no provision of this Supplemental Code 
 relating to pricing and marketing shall apply to export trade or to 
 sales or shipments for export trade. 
 
 Article XI. This Supplemental Code and all the provisions thereof 
 are expressly made subject to the right of the President, in accord- 
 ance with Subsection (b) of Section 10 of the Act, from time to 
 time to cancel or modify any oi'der, approval, license, rule or regula- 
 tion issued under said Act. Provision is also made that modifica- 
 
tions may be submitted by the Code Authority to the Administrator 
 for approval. 
 
 Article XII provides means for withdrawal of this Subdivision 
 from the Basic Code and its continuance as an autonomous Code. 
 
 Article XIII. No provision of this Supplemental Co<le shall be so 
 applied as to permit mcmopolies, or monopolistic practices, or to 
 eliminate, oppress, or discriminate against small enterprises. 
 
 Article XIV states the effective date of this Supplemental Code. 
 
 FINDINGS 
 
 The Assistant Deputy Administrator in his final report to me on 
 said Supplemental Code havinji^ found as herein set forth and on the 
 basis of all the proceedings in tliis matter : 
 
 I find that : 
 
 (a) Said Supplemental Code is well designed to promote the 
 policies and purposes of Title I of the National Industrial Recovery 
 Act, including removal of obstructions to the free flow of interstate 
 and foreign commerce which tend to diminish the amoimt thereof 
 and will provide for the general welfare by promoting the organiza- 
 tion of industry for the purpose of cooperative action among the 
 trade groups, by inducing and maintaining united action of labor 
 and management under adequate governmental sanctions and super- 
 vision, by eliminating unfair competitive practices, by promoting the 
 fullest posvsible utilization of the present capacity of inthistries, by 
 avoiding undue restriction of production (except as nuiy be tem- 
 porarily required), by increasing the consumption of industrial and 
 agricultural products through increasing purchasing power, bv re- 
 ducing and relieving unemployment, by improving standarcls 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 
 ajiplicant institute is an industrial group representative of the afore- 
 said Subdivision; and that said institute imposes no inequitable 
 restrictions on admission to membership therein. 
 
 (d) The Supplemental Code is not designed to and will not per- 
 mit monopolies or monopolistic practices. 
 
 (e) The Supplemental Code is not designed to and \vill not elim- 
 inate or opjjress small enterprises and will not operate to discrim- 
 inate against them. 
 
 (f) Those engaged in other steps of the ec(momic })rocess have 
 not been deprived of the right to be heard prior to approval of said 
 Suonlemental Code. 
 
 For tliese reasons, therefore, I have approved this Supplemental 
 Code, provided that certain ])rovisions relating to price publication 
 are stayed as stated in the Order. 
 Respectfully, 
 
 Hugh S. Johnson, 
 
 Administrator. 
 July 9, 1934. 
 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
 THE WATER SOFTENER AND FILTER INDUSTRY 
 
 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 Supple- 
 mental Code of Fair Competition for the Water Softener and Filter 
 Subdivision of the Machinery and Allied Products Industry, and 
 together with the Code of Fair Competition for Machinery and 
 Allied Products Industry, shall be the standard of fair competition 
 for this subdivision and shall be binding on every employer therein. 
 
 Article II — Definitions 
 
 "Applicant " means the Water Softener and Filter Institute, a 
 trade organization, all members of which are engaged in the manu- 
 facture or assembly for sale of the products of the Water Softener 
 and Filter Subdivision of the Machinery and Allied Products 
 Industry. 
 
 " Industry " means the Machinery and Allied Products Industry, 
 as defined in its Code of Fair Competition as approved by the 
 President, and as such definition may from time to time be amended. 
 
 " Subdivision " means the Water Softener and Filter Subdivision 
 of the Machinery and Allied Products Industry as defined and set 
 forth in paragraph 37 Article II of the Code of Fair Competition 
 for the Machinery and Allied Products Industry. 
 
 " Water Softener and Filter Subdivision means the manufacture 
 or assembly for sale of zeolite water softeners, lime-soda water 
 softeners, water filters, and products allied thereto, including the 
 zeolite used therein and parts thereof, and includes all those engaged 
 in such manufacture or assembly for sale." 
 
 " Code " means the Code of Fair Competition for the Machinery 
 and Allied Products Industry as approved by the President, March 
 17, 19o'l, 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 entit3\ 
 
 " Employer " means any person engaged in this Subdivision either 
 on his own behalf or as an emploj^er of labor. 
 
 "The Act " means Title I of the National Industrial Recovery 
 A.C11. 
 
 " The President " means the President of the United States. 
 
 " The Administrator " means the Administrator for Industrial 
 Recovery. 
 
 (5) 
 
" Basic Code Authority " means the Code Authority for the Ma- 
 chinery 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 by this Supplemental Code. 
 
 " Group Code Authority " means the Code Authority for any 
 gi'oup or products classification within this Subdivision. 
 
 " 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 hereby made a part of this Supplemental Code, 
 with the same effect as if they were written into this Supplemental 
 Code. 
 
 Article IV — Adoption op Other Provisions or Code 
 
 The following Articles of the Code, viz : Article II, " Definitions " ; 
 Article VI, "Administration ", to the extent that they shall be appli- 
 cable to this Supplemental Code as such or as it may hereafter be 
 administered as an autonomous Code; Article VIII, "Modifications 
 and Termination"; and Article IX, "Withdrawal", are hereby 
 adopted and made a part of this Supplemental Code, with the same 
 effect as if they were written into this Supplemental Code. 
 
 Article V — Administration 
 
 (a) A Code Authority for this Subdivision is hereby constituted 
 to administer and supervise and to facilitate the enforcement of the 
 Code and of this Supplemental Code in the manner and to the 
 extent provided in the Code and in this Supplemental Code. 
 
 (b) During a period not to exceed sixty (60) days following the 
 effective date and pending the election of the permanent Code 
 Authority, the Code committee of the Applicant shall constitute a 
 temporary Code Authority. 
 
 (c) The Applicant shall, by written notice mailed (registered) to 
 all employers known to the Applicant, call a meeting of employ- 
 ers to be held within sixty (60) days after the effective date for the 
 purpose of adopting procedural rules and regulations for the elec- 
 tion, organization and operation of the permanent Code Authority 
 and electing a permanent Code Authority which shall consist of 
 five member's. The Administrator may, in his discretion, appoint 
 one additional member (without vote and without expense to the 
 Industry). The permanent Code Authority so elected and ap- 
 l)()inted shall succeed the temporary Code Authority. 
 
 (d) 1. It being found necessary in order to supjiort the administra- 
 tion of this code and to maintain the standards of fair comix'tition 
 established hereunder and to effectuate the policy of the Act, the 
 Code Authority is authorized : 
 
 (a) To incur such reasonable obligations as are necessary and 
 proper for the foregoing purposes, and to meet such obli- 
 gations out of funds wliich may be raised as hereinafter 
 
provided and which shall be held in trust for the purposes 
 of the Code ; 
 
 (b) To submit to the Administrator for his approval, subject to 
 
 such notice and opportunity to be heard as he may deem 
 necessary (1) an itemized budget of its estimated expenses 
 for the foregoing purposes, and (2) an equitable basis 
 upon which the funds necessary to support such budget 
 shall be contributed by employers of the Subdivision ; 
 
 (c) After such budget and basis of contribution have been ap- 
 
 proved by the Administrator, to determine and obtain 
 equitable contribution as above set forth by all employers 
 of the Subdivision, and to that end, if necessary, to 
 institute legal proceedings therefor in its own name. 
 (2) Each employer of the Subdivision shall pay his or its equi- 
 table contribution to the expenses of the maintenance of the Code 
 Authority, determined as hereinabove provided, and subject to rules 
 and regulations pertaining thereto issued by the Administrator. 
 Only employers of the Subdivision complying with the code shall 
 be entitled to participate in the selection of members of the Code 
 Authority or to receive the benefits of any of its voluntary activities 
 or to make use of any emblem or insignia of the National Recovery 
 Administration. 
 
 3. The Code Authority shall neither incur nor pay any obligation 
 in excess of the amount thereof as estimated in its approved budget, 
 except upon approval of the Administrator ; and no subsequent bud- 
 get shall contain any deficiency item for exj>enditures in excess of 
 prior budgets estimates except those which the Administrator shall 
 nave so approved, 
 
 (e) Action by employers in any Subdivision meeting for the 
 election of Code Authority shall be by vote of the employers en- 
 titled to vote as provided in Section (d) of this Article V, each 
 such emploj^er to have one vote onl3^ Action by employers in any 
 Subdivision meeting for the adoption of procedural rules, revisions 
 or additions to the Supplemental Code, or the transaction of other 
 business of the Subdivision under this Supplemental Code, shall 
 be by vote of the employers in the Subdivision who are entitled 
 to vote thereat as provided in Section (d). Article V of the Sup- 
 plemental Code and are present in person or by proxy duly executed 
 and filed with Code Authority; cast and computed in the manner 
 provided in Section (d), Article VI of the Code. All questions as 
 to the number of votes which each employer shall be entitled to cast 
 at any meeting of employers other than the meeting held to vote 
 for the election of the permanent Code Authority shall be deter- 
 mined by Code Authority in accordance with Section (d), Article 
 VI of the Code. 
 
 (f ) In order that the Code Authority or Group Code Authority 
 shall, at all times, be truly representative of the Subdivision and 
 in other respects comply with the provisions of the Act, the Adr 
 ministrator may prescribe such hearings as he may deem proper; 
 and, thereafter, if he shall find that the Code Authority or Group 
 Code Authority is not truly representative or does not in other re- 
 spects comply with the provisions of the Act, may require an ag- 
 
8 
 
 propriate modification in the method of selection of the Code 
 Authority or Group Code Authority. 
 
 (g) Employers in this Subdivision having a common interest and 
 common problems may be grouped by Code Authority for adminis- 
 trative purposes. There shall be a Group Code Authority approved 
 or ap})ointed by Code Authority for each such group. 
 
 (h) If formal complaint is made to Code Authority that provi- 
 sions of this Suj^plemental Code have been violat<^d b}?^ any employer, 
 Cede Authority or the proper Group Code Authority shall investi- 
 gate the complaint and to that end, may to the extent permitted by 
 the Act, cause such investigation, examination or audit to be made, 
 as may be deemed necessary. If such investigation is made by 
 Group Code Authority it shall report the result of such investigation, 
 examination or audit to Code Authority for action. 
 
 (i) The Code Authority may appoint a Trade Practice Com- 
 mittee which shall meet with the Trade Practice Committees ap- 
 pointed under such other Codes as may be related to the Subdivision 
 for the purpose of formulating fair trade practices to govern the 
 relationships between production and distribution employers under 
 this Supplemental Code and under such others to the end that such 
 fair trade practices may be proposed to the Administrator as amend- 
 ments to this Supplemental Code and such other codes. 
 
 Article VI — Accx)unting and Costing 
 
 The Code Authority shall cause to be formulated an accounting 
 system and methods of cost finding and/or estimating capable of use 
 by all emi:)loyers of the Subdivision. After such system and methods 
 have been formulated, full details concerning them shall be made 
 available to all employers. Thereafter all emploj^ers shall determine 
 and/or estimate costs in accordance with the principles of such 
 methods. 
 
 Article VII — Selling Below Reasonable Cost 
 
 Section 1. When the Code Authority determines that an emer- 
 gency exists in this Subdivision and that the cause thereof is destruc- 
 ti\e j)rice-cutting such as to render inetl'ective or seriously endanger 
 the maintenance of the provisions of this Supplemental Code, the 
 Code Authorit}' may cause to be determined the lowest reasonable 
 cost of the products of this Subdivision, such determination to be 
 subject to such notice and hearing as the Administrator may require. 
 The Administrator may approve, disap})rove, or modify the deter- 
 mination. Thereafter, during the period of the emergency, it shall 
 be an unfair trade practice for any employer of the Subdivision to 
 sell or ofter to sell any i)roducts of the Subdivision for which the 
 lowest reasonable cost has b(>en determined at such prices or upon 
 such terms or conditions of sale that the buyer will })ay less therefor 
 than the lowest reasoiuible cost of such jjroducts. 
 
 When it a})pears that conditions have changed, the Code Authority, 
 upon its own initiative or upon the recpiest of any interested party, 
 shii'l cause the determination to be reviewed. 
 
 Section 2. The foregoing Section 1 shall not ai)[)Iy to (a) 
 dr()jt[)ed lines, oi' (b) seconds, or (c) iinentories whii'h must be con- 
 
verted into cash to meet emergency needs, all of which may be dis- 
 posed of by any employer at any price and on any terms or condi- 
 tions, but only if such employer, not less than two M^eeks before such 
 proposed disposal, has filed with Code Authority a statement in 
 writing setting forth the facts of, and reasons for, such proposed 
 disposal and the price and terms and conditions of sale, and Code 
 Authority has not, (with the approval of the Administrator), before 
 the termination of such two week period, in writing, disapproved the 
 proposed disposal. Notice of such disposal, if not disapproved, shall 
 be sent immediately to all employers manufacturing products of 
 equivalent design, character, quality or specifications, who may sell 
 (a) dropped lines, or (b) seconds, or (c) inventories which must 
 be converted into cash to meet emergency needs, at prices and on 
 terms and conditions as favorable as those stipulated in the pro- 
 posed disposal. 
 
 Section 3. The foregoing Section 1 shall not apply to a sale 
 made in order to meet competition on products manufactured out- 
 side the United States. For such disposal, any employer may sell, 
 at prices and on terms and conditions as favorable as those of the 
 competing foreign product, but only if he has first reported to the 
 Code Authority his intention so to sell, and the facts as to the com- 
 petition which justifies such action. 
 
 Article VIII — Price Lists 
 
 (a) If and when Code Authority determines that in any group of 
 the Subdivision it has been the generally recognized practice to sell 
 a specified product on the basis of net price lists, or price lists with 
 discount sheets, and terms of sale and payment, each employer en- 
 gaged in the manufacture or sale of such product shall, within ten 
 (10) days after notice of such determination, file with Code Author- 
 ity a net price list, or a price list with discount sheet, as the case 
 may be, individually prepared by him, showing his current prices, or 
 prices and discounts, and terms of sale and payment for such speci- 
 fied product, and Code Authority shall immediately publish and send 
 copies thereof to all known employers who are cooperating under 
 this Supplemental Code as described in Article V, (d) and engaged 
 in the manufacture or sale of such specified products. 
 
 Revised price lists and/or discount sheets and/or terms of sale and 
 paj^ment may be filed from time to time thereafter with the Code 
 Authority by any such employer, to become operative upon the date 
 specified therein, but such revised price lists and/or discount sheets 
 and/or terms of sale and payment shall be filed with the Code Au- 
 thority ten (10) days in advance of the operative date. Copies 
 thereof, with notice of the operative date specified, shall be imme- 
 diately published and sent to all employers cooperating under this 
 Supplemental Code as described in Article V, (d), 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 sheet 
 and/or terms of sale and payment first filed shall go into effect.^ 
 
 (b) If and when the Code Authority shall determine that in any 
 group of the Subdivision not now selling its product on the basis of 
 
 ^ See paragraph 2 of order approving this Code, 
 
10 
 
 price lists, with or without discount sheets, with 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, with or without discount 
 sheets and 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 terms of sale and pajanent for such specified product 
 should be put into effect in such group, then each em])loyer in such 
 group shall within twenty (20) days after notice of such deter- 
 mination, file with Code Authority net price lists or price lists and 
 discount sheets, with 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 may be 
 thereafter revised in the manner hereinbefore provided. Provided 
 that Code Authority shall make no determination, to place any 
 product of the Subdivision (not now on a price list basis) on a price 
 list basis, as provided in this Section unless affirmative consent to 
 such determination is given by a 66%% vote of employers who are 
 at that time cooperating under this Supplemental Code as described 
 in Article V, (d), and are engaged in manufacturing such product. 
 The eligibility requirements, method, and effect of such voting shall 
 be the same as is provided by Article V. 
 
 (c) 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 sheets, and terms of sale and 
 payment. 
 
 Article IX — Tr.\de Practices 
 
 1. No employer shall secretly, directly or indirectly, offer or make 
 any payment or allowance of a rebate, refund, commission, credit, 
 unearned discount or excess allowance, whether in the form of money 
 or otherwise, nor shall any employer secretly offer or extend to any 
 customer any special service or privilege not extended to all cus- 
 tomers of the same class, for the purpose of influencing a sale. 
 
 2. No employer shall publish advertising (whether printed, radio, 
 display or any other nature), which is misleading or inaccurate in 
 any material particular, nor shall any employer in any way misrep- 
 resent any goods (including but without limitation its use, trade- 
 mark, grade, quality, quantity, capacity, origin, size, substance, 
 character, nature, finish, material, content or preparation) or credit 
 terms, values, policies, services, or the nature or form of the business 
 conducted. 
 
 3. No employer shall ])ublisli or circulate unjustified or unwar- 
 ranted tlireats of legal proceedings Avliich tend to or have the effect 
 of harassing competitors or intimidating their customers. 
 
 4. No emj^loyer shall indulge in (h'structive price-cutting. 
 
 5. No employer shall give, jK-rmit to l)e given, or directly offer 
 to give, anything of value for the purpose of influencing or reward- 
 ing the action of any employee, agent or representative of another in 
 relation to the business of tlie emplo^'er of such employee, the prin- 
 cipal of such agent or the represented party, without the knowledge 
 of such employer, i)rincipal or party. This provision shall not be 
 
11 
 
 construed to prohibit free and general distribution of articles com- 
 monly used for advertising? except so far as such articles are actually 
 used for commercial bribery as hereinabove defined. 
 
 Article X — Export Trade 
 
 No provision of this Code relating to prices or terms of selling, 
 shipping or marketing, shall apply to export trade or sales or ship- 
 ments for export trade. " Export Trade " shall be as defined in the 
 Export Trade Act adopted April 10, 1918. 
 
 Article XI — Modifications 
 
 (a) As provided by Section 10 (b) of the Act the President may 
 from time to time cancel or modify any order, approval, license, rule 
 or regulation issued under Title I of the Act. 
 
 (b) Any amendments, additions, revisions, or supplements of 
 this Supplemental Code, proposed by Code Authority, and author- 
 ized by the affirmative vote of 66%% of the employers shall be in 
 full force and effect upon approval by the Administrator. The 
 eligible requirements, method and effect of such voting shall be 
 the same as provided by Article V hereof. 
 
 Article XII — Withdrawal 
 
 Upon thirty days' notice to the Basic Code Authority and to the 
 Administrator, this Subdivision may, ii])on the concurring affirma- 
 tive vote of employers, within the said Subdivision entitled to cast 
 two-thirds or more of all the votes that might be cast by all em- 
 ployers within the Subdivision entitled to vote thereon, withdraw 
 from the jurisdiction of the Basic Code Authority. The eligibility 
 of voters and the method and effect of such voting shall be in ac- 
 cordance with the provisions of Article V hereof. After and in the 
 event such withdrawal is accomplished this Supplemental Code, 
 together with the provisions of the Code shall become and be the 
 sole code governing this Subdivision, and the Code Authority shall 
 for this Subdivision, become and be the sole Code Authority and 
 shall perform all the functions with respect thereto. 
 
 Article XIII — Monopolies 
 
 Applicant imposes and shall impose no inequitable restrictions on 
 membersliip therein. The Supplemental Code presented by it is not 
 designed to promote monopoly, and shall not be so construed or ap- 
 plied as to oppress or eliminate small enterprise or discriminate 
 against them, and is designed to effectuate the policy of the Act. 
 
 Article XIV — Effective Date 
 
 This Supplemental Code shall become effective and binding on all 
 persons engaged in the Subdivision on the eleventh day after its 
 approval. 
 
 Approved Code No. 347 — Supplement No. 28. 
 Registry No. 699-19. 
 
 o 
 
titllVERSITY OF FLORIDA 
 
 3 1262 08850 4518