Approved Code No. 347 — Supplement No. 6 Registry No. 1399—31 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COxOTETITION FOR THE (A Division of the Machinery and Allied Products Industry) AS APPROVED ON MAY 14, 1934 WE DO OUR PART UNIV. OF FLUB. „J^ U.S. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. --..---. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building, Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 170G, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. 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Approved Code No. 347 — Supplement No. 6 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WOODWORKING MACHINERY INDUSTRY Approved on May 14, 1934 ORDER Supplementary Code of Fair Competition for tfte Woodworking Machinery 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 In- dustrial Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Woodworking- Machinery Subdivision of Machinery and Allied Products Industry, and hearings 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, 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 Association of Manufacturers of Woodworking Machinery shall amend its Constitution and By-Laws to the satis- faction 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 waiting period between the filing with the Code Au- thority (or such agency as may be designated in the Supplemental Code) and the effective date of price lists, as originally filed and/or 58776° 544-78 34 (1) revised price lists or revised terms and conditions of sale, bo and tln'\ hereby are stayed pending my further order. 3. That the prov sions of Article YII1. Section (e) be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution 01 the products of the Subdivision to the Administrator, i [ugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glancy, Division Administrator. Washington, D. C, May l.' h 1901 REPORT TO THE PRESIDENT The President, The White House. Sir : This report relates to the Supplemental Code of Fair Compe- tition for the Woodworking Machinery Subdivision of Machinery and Allied Products Industry as proposed by the Association of Manufacturers of Woodworking Machinery. A public hearing was held in Washington, 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 STATEMENT The Woodworking Machinery Subdivision, being truly represent- ative 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 in 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 all those engaged in the manufacture for sale of woodworking machin- ery and accessories and parts thereof. However, the manufacture of sawmill machinery is excluded, as such machinery is manufac- tured within another subdivision. ECONOMIC EFFECT Annual sales in the Subdivision declined from $20,200,000 in 1929 to $3,500,000 in 1932, or 82.7 per cent. No estimate was made by the Subdivision of the value of sales for the year 1933. Aggregate in- vested capital has shown a 33 per cent decline since 1929, while pro- duction capacity has remained constant. Estimates showing employment for the entire Subdivision submit- ted in the code application, indicate that emplovment declined from 3,900 wage earners in 1929 to 1,000 in 1933, or 74.4 per cent. Average hours per week were reported to be 51.5 in June 1929 ; 42.1 in June 1933 ; and 36.9 in October, 1933. In October, 1933 the average hours were 28.4 per cent less than the June, 1929 average. The effect of the 40-hour provision with production at more normal levels may be estimated on a basis of total man-hours per week in 1931 by dividing the number of hours prescribed in the code. After 1929 man-hours declined steadily from 200,850 to a minimum of 31,500 in 1932, or approximately 84 per cent. Man-hours for 1933 (3) have increased from 41,380 for the first six months to 53,030 for the third quarter, or 28 per cent. If it is assumed that the 08.220 man-hours for 1931 are repre- sentative of the volume of production for that year, and a reason- aide measure of man-hour requirements in a more normal period, the adoption of the 40-hour week would require I force of approxi- mately 1,700 employees or 44 per cent of the 1920 working level. Owing to the impossibility of all employees of the Subdivision working the maximum 40-hours, the average work week will be shorter, say B8 assumed effective hours, and employment correspond- ing' greater; viz., 1,900 workers will be required to produce the 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 fiat minimum hourly rate of 82 cents per hour for the South and the following city population differentials for all other sections of the United States: Over 50,000 population, 40 cents per hour Over 10,000 to 50,000 population, 38 cents per hour 10,000 population and under, 36 cents per hour In addition to the minimum wage rates shown above, the Code provides that women engaged in substantialh r the same work as men shall receive the same rate of pay as such men employees; that the minimum wage for women employees engaged in plant opera- tions shall be not 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. Distributions of the number of factory workers receiving classified rates in the specified areas are not available. Consequently, it is only possible to estimate the approximate number of factory workers who will receive the benefit of the proposed minimum hourly rates, regardless of location, on the basis of the number of factory workers receiving less than the designated hourly rates as of June 15, 1933. Estimated number of factory workers receiving less than designated hourly rates Proposed minimum hourly rates 40 cents (other U.S.) • i (other U.S.) 3fi cents (other U.S.) 32 cents (South) Distribution of factory workers receiving less than the minimum re- gardless of location Approximate percent 25.2 20.6 10.0 8.7 Approximate number 351 287 223 121 Based on the distribution as of June 15. 1983 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 pro- posed minimum rates will probably cause an increase in factory payrolls. The estimated increase as of dune 15, 1933, regardless of location of the workers, will probably, under the most favorable conditions, not exceed 3.5 per cent assuming only upward adjust- ment in the brackets below the 40-cent minimum and no change in man-hour requirements. RESUME OF SUPPLEMENTAL CODE Article I. Purposes. — States the purposes of the Supplemental Code. Article II. Definitions. — Accurately defines specific terms ap- plicable to the Subdivision as used in this Supplemental Code. Article III. Employment Provisions. — Provides for the adoption of the employment provisions of the National Industrial Recovery Code of the Machinery and Allied Products Industry, as approved by 3*ou on the seventeenth day of March, 1934, and as from time to time amended. Article IV. Adoption of Other Provisions of the Code. — Pro- vides for the adoption of Articles 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 governing their adoption. Article V. Organization and Administration. — Provides for the establishment of a Code Authority and defines its powers and duties. Article VI. Accounting and Costing. — Provides for the establish- ment of a uniform accounting system and method of cost finding and/or estimating to be used by all employers in the Subdivision. Article VII. Selling Below Reasonable Cost. — Provides that no products of the Subdivision shall be sold or exchanged below a rea- sonable cost when the Code Authority determines that an emergency exists. Article VIII. Price Lists. — Provides for methods of setting up, revising and filing price lists and discount sheets and terms of sale and payment. Article IX. Trade Practices. — Sets forth unfair methods of competition. Article X. Sales for Export. — No provisions of this Supplemental Code relating to pricing and marketing shall apply to direct export sales or to any product destined ultimately for export. Article XI. Modifications. — This Supplemental Code and all pro- visions thereof are made subject to the right of the President, in accordance with Subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under said Act. Provision is also made that amendments, additions, revisions, or supplements, proposed by the Code Authority, may be submitted from time to time for the approval of the Administrator. Article XII. Monopolies. — No provisions of this Supplemental Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. Article XIII. Effective Date. — This Supplemental Code shall become effective on the eleventh day after its approval by the Administrator. 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 thai : (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 freeflow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zation of industry for the purpose of cooperative action among the trade groups by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 employees; and is not classified by 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 fO thereof; and that the applicant association is an industrial association truly representative of the aforesaid 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 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 Supplemental Code. For these reasons, therefore, I have approved this Supplemental I le, provided that certain provisions relating to price publication are stayed; that the Constitution and By-Laws of Applicant be revised as stated in the Order; and that the provisions of Article VIII. Section (e) be stayed until satisfactory evidence concerning distribution of the products of the Subdivision is submitted to the Administrator, Respectfully, Hugh S. Johnson. Administrator. May 14, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WOODWORKING MACHINERY INDUSTRY A DIVISION OF MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supple- mental Code for the Woodworking Machinery Subdivision of the Machinery and Allied Products Industry, and together with the National Industrial Recovery Code of Machinery and Allied Prod- ucts Industry to which it is a Supplement shall be the standard of fair competition for this subdivision, and shall be binding on each employer therein. Article II — Definition "Applicant " means the Association of Manufacturers of Wood- working Machinery, a trade organization, all members of which are engaged in the manufacture for sale of the products of the Wood- working Machinery Industry Subdivision of the Machinery and Allied Products Industry, which organization is truly representa- tive of this Subdivision. " 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 Woodworking Machinery subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph 39 of Article II of the National Industrial Re- covery Code of the Machinery and Allied Products Industry as follows : " Woodworking Machinery Subdivision " means the manufacture for sale of Woodworking Machinery (exclusive of Sawmill Machinery) accessories, and parts thereof, and includes all those engaged in such manufacture for sale. " Code " means the National Industrial Recovery Code of the Machinery and Allied Products Industry, as approved by the Presi- dent, 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. " Employee " means any one who is employed in this subdivision by any such employer. 5877G" 544-78 34 2 (7) 8 " The Act w 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- chinery ami Allied Products Industry as constituted by the Code. ••(ode Authority" means the ('ode Authority constituted for this subdivision as provided by the Code and by thi^ 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 " menus 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 of the Code The following Articles of the Code, viz: Article II k * Definitions "', Article VI. "Administration " to the extent that they shall be ap- plicable to this Supplemental Code as such or as it may hereafter b administered as an autonomous Code: Article VIII. "Modifica- tions and Termination "; and Article IX. '" Withdrawal ; are hereby 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 estab- lished a. Code Authority which shall consist of; 1. The Executive Committee of the Association of Manufac- turers of Woodworking Machinery consisting of not less than five, nor more than eight members. '2. One additional member to be selected in any fair manner, with the approval of (be Administrator, by employers in this sub- division, not members of the applicant, who are cooperating under this code as described in Section (e) hereof, if so desired by BUCh non members. :>. The Administrator may at his discretion appoint one addi- tional member without vote and without expense to this Sub- division. (b) The Code Authority shall adopt rules and regulations for its procedure ami employ such personnel as it may deem necessary. (c) Any employer in this subdivision shall be entitled to vote at election of. and share in the benefits of the activities of. the Code Authority, and may participate in any endeavors of the applicant iragrapb 2(1) of ordei approving Hi; Code 9 and Code Authority in the preparation of any revisions of, or additions or supplements to this Supplemental Code, subject to provisions of Section A and E of Article V. (d) Action by employers in any subdivision meeting on Supple- mental Code revisions, additions or supplements, or the transac- tion of other business of the subdivision under this Supplemental Code, shall be by a vote of the employers entitled to vote as herein provided, who are present in person or by proxy duly executed and filed with Code Authority, cast concurrently in each of the following methods: (1) By one vote by each employer. (2) By a vote of employers weighted on the basis of one vote for each $100,000 of the annual average of sales by each employer for the next preceding three calendar years as reported to the Code Authority of this Subdivision. Each employer shall be entitled to at least one such vote. Except as otherwise provided in this Code, any action taken at any meeting of employers shall be by a majority vote, cast and com- puted in each of the two methods hereinabove provided. - (e) Each employer in this subdivision, subject to the jurisdiction of this Supplemental Code and accepting the benefits of the activities of the Code Authority hereunder, shall pay to the Code Authority 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 Sup- plemental Code, said proportionate share to be based upon the vol- ume of shipments for the next preceding three years and/or such other factors as the Code Authority may prescribe and the Administrator may approve. (f) 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 prescribed (to be held and used subject to the limitations of this Article V), statistics of plant capacity, volume of production, vol- ume of sales in units and dollars, orders received, unfilled orders, stocks on hand, inventories, "raw and finished ", number of em- ployees, wage rates, employee earnings and hours of work and such other data or information as the Code Authority, subject to review by the Administrator, 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. (g) Except as otherwise provided in the Act. all statistics, data and information filed in accordance with the provisions of this Supplemental Code shall be confidential ; provided, however, that 10 nothing heroin shall prevent the publication of general summaries of such statistics, data and information. The statistics, data and information of one employer shall not be revealed to any other employers, except, that for the purpose of ad- ministering or facilitating the enforcement of the provisions of this Supplemental Code. Code Authority, by its duly authorized repre- sentatives (who -hall not he 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 he furnished in accordance with the provisions of this Supplemental Code. (h) Aggregations of employers having a common interest and com- mon problems may be grouped by Code Authority for administra- tive purposes. There shall be a Group Code Authority approved 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 investigation 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 Code, on which any unfair competition is alleged, to show evidence of any violation of this Supplemental Code, and to report any such alleged violation to the proper authorities for action. (i) 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. (j) 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 rind that the Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an ap- propriate 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 system and methods have been formulated, full details concerning them shall be made available to all employers. Thereafter all em- ployers shall determine and/or estimate costs in accordance with the principles of such methods. Abticle VII — Selling Below Reasonable Cost When the Code Authority determines that an emergency exists in this industry and that the cause thereof is destructive price-cut- 11 ting such as to render ineffective or seriously endanger the mainte- nance of the provisions of this Code, the Code Authority may cause to be determined the lowest reasonable cost of the products of this industry, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may ap- prove, disapprove, or modify the determination. Thereafter, during the period of the emergency, it shall be an unfair trade practice for any member of the industry to sell or offer to sell any products of the industry for which the lowest reasonable cost has been deter- mined at such 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 Author- ity, 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 has been the generally recognized prac- tice to sell a specified product on the basis of net price lists or price lists with discount sheets and fixed terms of sale and payment, each employer shall, within ten (10) days after notice of such determina- tion, file with Code Authority 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 including f.o.b. points and terms of sale and payment, and such additional copies as Code Authority may require, and the Code Authority shall imme- diately publish the same, make available to all interested parties, and send copies thereof to all known employers manufacturing such specified products who are cooperating under 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 employer, to become effective ten (10) days from date of filing with Code Authority, unless Code Authority shall authorize a shorter period. Copies thereof with notice of the effec- tive date specified, shall be immediately made available to all in- terested parties, published and sent to all known employers manu- facturing such product who are cooperating under 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 lists and/or discount and/or terms of sale and payment sheet first filed shall go into effect. 2 (b) If and when Code Authority shall determine that in any group of the Subdivision, not now selling its product on the basis of pric^ 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 condi- tions in a group where the use of price li-ts. and/or discount sheets and fixed terms of sale and payment is well recognized, and that a 2 Sec paragraph 2 (2) of order approving this Code. 12 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 Mich group shall within twenty ( - Jts ami 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 may he 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 hasis) on a price-list hasis, as provided in this para- graph (b) of Article YI1I unless two-thirds of the employers (co- operating in this Code as provided in Article V,) who are at that time engaged in manufacturing such product, shall affirmatively consent that such determination he made. 3 (c) To the extent permitted by the Act, Code Authority shall have power, on its own initiative, or on the complaint of any em- ployer, to investigate any price and/or terms of sale and payment for any product shown in any price list and/or discount and or terms of sale and payment sheet so filed with Code Authority by any employer, and for the purpose of the investigation thereof, to require such employer to furnish such information concerning the cost of manufacturing and selling such product as Code Authority shall deem necessan 7 or proper for such purpose. (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 pay- ment sheet. (e) Xo employer shall sell to or through any distributor who shall fail to agree to resell in accordance with the provisions of 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 discrimina- tion, result, or tend to result in selling at other than published prices, or in deceiving or misleading purchasers, or in misrepresenting the products of competitors. Any deviations from the standards set forth in this Article IX. or any amendments thereto, by any member of this subdivision. either directly or indirectly through his agents, shall be considered an unfair method of competition and a violation of this Code. The following specific practices are examples of unfair methods of competition as defined above: Rile 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, unearned discount or excess allowance, whether in the form of money •See paragraph 2 (3) of order approving Ibis Code. 13 or otherwise, nor shall a member of the Industry secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. Rule 2. Xo 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 knowledge of such employer, principal, or party. Commercial 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. Rule 3. Any discrimination between purchasers of the same class, by the sale of any article having a published price, at any price other than the seller's published price by means of direct or indirect price concessions, or by means of any privilege not extended to purchasers generally. Rule 4. Untruthfully advertising, representing, or marking any product, with intent to deceive or mislead. Rule 5. Wrongfully enticing away the emplo3'ees of competitors with the purpose and effect of unduly hampering, injuring, or embarrassing competitors in their business. Nothing in this para- graph 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 G. Making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the grade, quality, quantify, substance, character, nature, origin, size, or preparation of an}" product of the industry, having the tendency and capacity to mislead or deceive purchasers or prospective purchasers. Rule 7. 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 tendency and capacity to mislead or deceive purchasers or prospec- tive purchasers. Rule 8. Discrimination, either directly or indirectly in the prices paid for used equipment, whether in cash or as a credit, in connec- tion with a sale of products of this Subdivision, provided that this shall not prevent discrimination in prices or allowances necessarily resulting from differences in the make, model, age, or condition of the used equipment so traded for or purchased. To avoid such unfair discrimination every employer, either directly or indirectly through his agents, shall establish, and announce through Code Authority, his own prices on used equipment, for the purpose of purchase or allowance in trade in connection with the sale of products of this Subdivision, in the same fashion as he establishes, revises and publishes his prices on products of this Subdivision as provided for in Article VIII of this Supplemental Code. Rule 0. Inducing or attempting to induce any breach of existing contract between a competitor and his customer or wrongfully inter- fering with or obstructing the performance of any such contract. 14 Ri if. 10. Granting of cither a gelling commission or dealer's dis- count to any concern or individual other than bona fide woodworking machinery dealers or salesmen. Rule 11. Selling or quoting for delivery at any point- other than specified in published price schedules without the addition of proper transportation, handling, erection and installation charges. Rule 12. Withholding from or inserting in an invoice, any state- ment, which makes the invoice a false record, wholly or in part, of the transaction represented on the face thereof. Rule L3. The making of any guarantee against defect in ma- terial or workmanship for a longer period than one year from invoice date. Rule 14. The sale or offering for sale of any product of the Wood- working Machinery Industry under any form of guarantee to the purchaser or prospective purchaser against either advance or pro- tection against the decline in the price of said product. Rule 15. In all cases of competitive bidding, all bids submitted shall be the bona fide final bids of the bidders and no changes in the amount of the bids shall be made, save only those due to changes in the plans and specifications, or where equal opportunity to change bids is extended to all bidders; and in such cases changes in the amount of the bid shall be made on the same unit or other basis as the original bid. Rule 16. The sale or offer for sale of the product of this Subdi- vision on terms involving a period of trial that allow the purchaser the right to reject or refuse acceptance of such product for any rea- sons other than (1) failure of such product to comply with specific guarantees of performance duly written in the purchase contract; and (2) refusal on the part of the seller or his agent to make good defects in material or workmanship of such product. Rule 17. Shipping Home Craft equipment on consignment except under circumstances to be defined by the Code Authority, where peculiar circumstances of the industry require the practice; shipping in excess of quantity specified in order; redating of orders or the cancelling of an original order and the substitution therefor of a new order with a later date for the same merchandise. Rule 18. Exchanging Home Craft equipment or accepting such equipment in return provided that this shall not apply to obsolete home craft equipment or equipment which is defective in material or workmanship. Article X — Sales for Export The provisions of this Supplemental Code concerning pricing and marketing (Articles VII, VIII and IX) shall not apply to direct export sales of any product. A similar exemption may be granted by the Code Authority of this Subdivision as to sales of any product destined ultimately for export. Unless otherwise determined by the Code Authority the term "export" shall include all shipments to all places without the several states of the United States and the District of Columbia; provided, however, that no shipment to any territory or possession of the United States shall be considered an export when any employer is engaged in the industry in such terri- tory or possession. 15 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 approved by 66%% of the employers who are cooperating in the administration of this Supplemental Code shall be in full force and effect upon ap- proval by the Administrator. The eligibility requirements, method and effect of such voting shall be the same as provided by Article V. Article XII — Monopolies Applicant imposes and shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopolies, and shall not be so construed or applied as to oppress or eliminate small enterprises or discriminate against them, and is designed to effectuate the policy of the Act. Article XIII — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval by the Administrator, and shall not be otherwise effective. Approved Code No. 347 — Supplement No. 6. Registry No. 1399-31. O UNIVERSITY OF FLORIDA 3 1262 08336 661 6