V Approved Code No. 84 — Supplement No. 46 Registry No. 1213—15 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ELECTRO PLATING AND METAL POLISHING AND METAL FINISHING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON AUGUST 22, 1934 RPART 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 bv 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 Till: DEPARTMENT Ol' COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala.: 257 Federal Building. Boston, Mass.: 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. 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Approved Code No. 84 — Supplement No. 46 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ELECTRO PLATING AND METAL POLISHING AND METAL FINISHING INDUSTRY As Approved on August 22, 1934 ORDER Approving Supplementary Code of Fair Competition for the Electro Plating and Metal Polishing and Metal Finishing Industry a division of the fabricated metal products manufacturing and metal finishing and metal coating industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, and in accordance with the provisions of Section 1 of Article VI of the Basic Code for the Fab- ricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the Electro Plat- ing and Metal Polishing and Metal Finishing Industry, and hearing having been duly held thereon and the annexed report on said Sup- plementary 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 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 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 ap- proved; provided, however, that the provisions of Subsection (d) of Section 4 of Article IV be deleted. Hugh S. Johnson, Administrator for Industrial Recovery, Approval recommended : Barton W. Murray, D [vision Administrator. Washington, D.C., August 22, 1934. (1) 81812° 1044-101- — -34 REPORT TO THE PRESIDENT The President, The White Home. Sir : This is a report on the Supplementary Code of Fair Competi- tion for the Electro Plating and Metal Polishing; and Metal Fin- ishing Industry, a Division of the Fabricated Metal Products Manu- facturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., May 18, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The fciu*etro Plating and Metal Polishing and Metal Finishing Industry, being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coat- ing Industry, has elected to avail itself of the option of submitting a Supplementary Code of Fair Competition, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by you on the Second day of November, 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Supple- mentary Code. Article III. This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of its Basic Code, as approved November 2, 1933, are the labor provisions of this Supplementary Code. Article IV establises a Supplementary Code Authority consist- ing of fourteen (14) members, twelve (12) of whom shall be the Executive Committee of the Master Electro Platers Institute, or its successor, and two (2) of whom shall be elected from the non mem- bers of the Institute by the members of the Industry at a meeting called by the Temporary Supplementary Code Authority, and gives the Administrator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary Code. Article V provides for the formulation of an accounting system and methods of cost finding and/or estimating. Article VI provides the determination of minimum prices to mitigate conditions constituting an emergency. Article VII provides for the filing of prices for products of the Industry. (2) Article VIII sets forth the unfair trade practices of this Supple- mentary Code avoidance of which is especially designed to offset unfair competition in this division of the Industry. Article IX contains the mandatory provisions contained in Sec- tion 10 (b) of the Act and also provides for the submission of pro- posed amendments to the Supplementary Code. Article X provides against monopolies and monopolistic practices. Article XI 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 organi- zation 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 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 industry normally employs not more than 50,000 em- ployees ; and is not classified by me as a major industry. (c) The Supplementary Code as approved, complies in all 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 Institute is an industrial Institute truly representative of the aforesaid Industry; and that said Institute imposes no inequi- table restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate 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; provided, however, that the provisions of Subsection (d) of Section 4 of Article IV be deleted. Respectfully, Hugh S. Johnson, August 22, 1934. Administrator. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ELECTRO PLATING AND METAL POLISHING AND METAL FINISHING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Electro Plating and Metal Polishing and Metal Finishing Industry pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by the President on the 2nd day of November, 1933, and the provisions of this Supplementary Code shall be the standards of Fair Competition of such Industry and shall be binding upon every member of the Industry. Article II — Definitions Section 1. The term " Electro-Plating and Metal Polishing and Metal Finishing Industry " or the " Industry " as used herein means the grinding, polishing, and buffing of any metal part or metal product and/or the electro or chemical deposition of any metal on any metal as a commercial process for sale ; including the grinding, polishing, buffing, and/or electro-plating of purchased metal parts for the sole purpose of selling same as plated articles. This does not include the grinding, polishing, buffing, and/or plating in cases where the party completely fabricates the metal part or uses the same as a minor part in assembling the products manufactured by such party. Section 2. The term " employee " as used herein includes any and all persons engaged in the Industry, however compensated, except a member of the Industry. Section 3. The term "employer ", .as used herein, includes anyone by whom such employee is compensated or employed. Section 4. The term " member of the Industry ", as used herein, includes, but without limitation, any individual, partnership, associa-. tion, corporation, or other form of enterprise engaged in the In- dustry either as an employer or on his or its own behalf. Section 5. The terms "President", "Act", and "Administrator " as used herein mean respectively, the President of the United States, Title I of the National* Industrial Recovery Act, and the Adminis- trator for Industrial Recovery. (4) Section 6. The term " Basic Code ", as used herein, is defined to mean the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry as approved by the President on the second day of Novem- ber, 1933. Section 7. The term " Basic Code Authority ", as used herein, means the Executive Committee of the Fabricated Metal Products Federation. Section 8. The term " Supplementary Code Authority ", as used herein, means the Agency, which is to administer this Supplementary Code as hereinafter provided. Section 9. The term " Institute ", as used herein, is defined to mean the Master Electro Platers Institute, or its successor. Section 10. The term " Federation ", as used herein, is defined to mean the Fabricated Metal Products Federation or its successor. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manu- facturing and Metal Finishing and Metal Coating Industry and with- out 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 Supplementary Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV — Organization, Powers and Duties of Supplementary Code Authority Section 1. There shall be established a Supplementary Code Authority consisting of 14 members, twelve (12) of whom shall be the Executive Committee of the Institute, and two (2) of whom shall be elected by and from among the members of the Industry who are non-members of the Institute. Within sixty (60) days following the effective date of this Supple- mentary Code the Executive Committee shall call a meeting of the members of the Industry who are non-members of the Institute on 10 days' notice sent by mail to all such members of the Industry, whose names may be ascertained after diligent search, for the purpose of electing the above mentioned two (2) members. At any such meeting voting may be either in person, by proxy, or by letter ballot. The two (2) persons receiving the greatest number of all votes cast whether in person, by proxy, or oy letter ballot shall be deemed to be elected. In case the non-members of the Institute shall fail to elect the non-member representatives on the Supplementary Code Authority as hereinabove provided, the Administrator shall appoint such non- member representatives from a list of four (4) non-members of the Institute to be furnished to the Administrator by said Executive Committee. During the period from the effective date of the Supplementary Code and until the election of the said two (2) non-member repre- sentatives on the Supplementary Code Authority the Executive Com- mittee of the Institute shall act as a temporary Code Authority with the powers herein given to the Supplementary Code Authority. A Vacancy in the membership of the Supplementary Code Au- thority, resulting from the death, resignation,, or inability to act of a member of the Executive Committee, shall be filled by a major- ity vote of the remaining members of the Executive Committee; and a vacancy in the membership of the Supplementary Code Authority, resulting from the death, resignation, or inability to act of a non- institute member, shall be filled by a majority vote of the remaining members of the Supplementary Code Authority, provided, however, that the person filling such vacancy shall be a member of the In- dustry who is a non-member of the Institute. In addition thereto the Administrator may appoint a member of the Supplementary Code Authority who shall be without vote and shall serve without expense to the Industry. The representa- tive appointed by the Administrator shall be given reasonable notice of and may sit at all meetings of the Supplementary Code Authority. Section 2. Each trade or industrial association directly or in- directly participating in the selection or activity of the Supplemen- tary Code Authority shall (1) impose no inequitable restrictions on memberships, and (2) submit to the Administrator true copies of its Articles of Association, By-Laws, Regulations, and any amendments when made thereto, together with such other information as to mem- bership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. Section o. 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 Adminis- trator 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 re- moval of any or all of the members thereof, and may make appro- priate modification or modifications of the Supplementary Code Authority. Section 4. It being found necessary in order to support the ad- ministration of the Supplementary Code and to maintain the stand- ards of fair competition established hereunder and to effectuate the policy of the Act, the Supplementary Code Authority is authorized : (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Supplementary 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 members of the Industry. (c) After such budget and basis of contribution has been ap- proved by the Administrator, to determine and obtain equitable contribution as above set forth by all members of the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. (d) The Code Authority is authorized to make application for the termination of the exemption conferred in paragraph 3 of Ad- ministrative Order X-36 dated May 26, 1934, and to take such action as may be necessary to obtain the approval of such application. 1 Each member of the Industry shall pay his or its equitable contri- bution to the expenses of the maintenance of the Supplementary Code Authority, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Administrator. Only members of the Industry complying with the Supplementary Code and contributing to the expenses of its administration as here- inabove provided, unless duly exempted from making such contri- butions, shall be entitled to participate in the selection of members of the Supplementary Code Authority or to receive the benefits of any of its voluntary activities or to make use of any emblem or insig- nia of the National Recovery Administration. The Supplementary Code Authority shall neither incur nor pay any obligations in excess of the amount thereof as estimated in its approved budget, except upon approval of the Administrator, first obtained and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 5. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for an3 r purpose. Nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of the Supplementary Code Authority. Nor shall any member of the Supplementary Code Au- thority be liable to anyone for any action or omission to act under this Supplementary Code, except for his own willful malfeasance or nonfeasance. Section 6. The Supplementary Code Authority 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 which shall be necessary or proper to enable it to fully administer this Supplementary Code and to effectuate its pur- pose. 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 specific duties : (a) To adopt by-laws and rules and regulations for its procedure. (b) To obtain from members of the Industry such information and reports as are required for the administration of the Supple- mentary Code. In order to assure confidential treatment of indi- vidual figures, all reports and information which the Supplementary 1 Deleted. See paragraph 2 of order approving this Code. 81812° 1044-101 34 2 8 Code Authority is empowered to collect or receive, shall be collected or received by an impartial agency appointed by the Supplementary Code Authority, not a member of nor connected with a member of the Industry. The agency so collecting or receiving any such reports or information shall keep the same confidential as to individual reports and shall not disclose the same to any member of the Indus- try, but all such information shall be available at all times to the Administrator. In addition to information required to be submitted to the Sup- plementary Code Authority, members of the Industry, subject to the Supplementary Code, shall furnish such statistical information as the Administrator may deem necessary for the purposes recited in Section 3(a) of the Act, to such Federal and State Agencies as he may designate; provided that nothing in this Supplementary Code shall relieve any member of the Industry of any existing obligations to furnish reports to any government agency. Xo individual report shall be disclosed to any other member of the Industry or any other party, except to such other governmental agencies, as may be directed by the Administrator. (c) To appoint within 90 days after the effective date of this Supplementary Code a committee so constituted as to give consumer and governmental representation satisfactory to the Administrator, to make a study with a view to the establishment of classifications and standards of size (including thickness of deposit) and quality (grades) of staple products and services of the Industry wherever such standards are deemed feasible. The findings and recommenda- tions of this committee shall be submitted to the Industry and to the Administrator, within one year after the effective date of this Supplementary Code. If a majority of the members of the Industry approve of the findings and recommendations, and after such hear- ings and investigations as the Administrator may designate, and upon approval by the Administrator, such findings and recommendations shall be made a part of this Supplementary Code and shall be binding upon every member of the Industry. (d) To use such trade associations and other agencies as it deems proper for the carying out of any of its activities provided for here- in, provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supple- mentary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. (e) To make recommendations 10 the Administrator for the co- ordination of the Administration of this Supplementary Code with such other codes, if any, as may be related to or affect members of the Industry. (f) To recommend to the Administrator any action or measures deemed advisable, including further fair trade practice provisions to govern members of the Industry in their relations with each other or with other Industries; measures for industrial planning, and stabilization of employment; and including modifications of this Code which shall become effective only as hereinafter provided in making amendments hereto. (g) To appoint a Trade Practice Committee which shall meet with the Trade Practice Committees appointed under such other codes as may be related to the Industry for the purpose of formu- lating fair trade practices to govern the relationships between em- ployers under this Supplementary Code and under such other codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this Supplementary Code and such other codes. (h) To provide for local Administration of the Supplementary Code through the selection of District Code Committees for the various Industry Districts as hereby created and set forth in Ex- hibit "A" attached hereto. Each such District Committee shall be selected by and from the members of the Industry residing within the District, in a manner truly representative of the members of the Industry within that District and subject to review by the Administrator. The District Code Committees shall administer the Supplementary Code in their respective districts and shall have such powers in the administration of the Supplementary Code as may be delegated to them by the Supplementary Code Authority, provided, that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supplementary Code; and that such District Code Committees shall at all times be subject to and com- ply with the provisions of the Supplementary Code. Section 8. Each member of the Industry may report to the Dis- trict Code Committee for his district, or its appointees, any com- plaints regarding an alleged violation of this Supplementary Code by a member of the Industry within a district. The District Code Committee shall attempt to settle the disputes and, if unsuccessful, shall forward its recommendations to the Supplementary Code Au- thority. Any complaint of an alleged violation of this Supplemen- tary Code made by a member of the Industry against another member of the Industry located in another district shall be reported to the Supplementary Code Authority. Section 9. To the extent permitted by the Act and subject to such rules and regulations as the Administrator may prescribe, any and all information furnished to the Supplementary Code Authority by any member of this Industry pursuant to the provisions of this Sup- plementary Code shall be subject to verification by an impartial agency agreed upon by the Supplementary Code Authority and the member of the Industry in question, and, failing such agreement, such impartial agency shall be selected by the Administrator, which impartial agency may check so much of the pertinent books, ac- counts and records of such member of the Industry as may be re- quired to verify the accuracy of the information so furnished. Section 10. If the Administrator believes that any action of the Supplementary Code Authority or any agency thereof is unfair or unjust or contrary to the public interest, the Administrator may re- quire that such action be suspended to afford an opportunity for investigation of the merits of such action. Further action by such Supplementary Code Authority or agency regarding the matter complained of may be taken if approved by the Administrator, but shall not be taken if disapproved by the Administrator within thirty (30) days of notice to him of intention to proceed with such action. 10 Section 11. Every employer shall make reasonable provisions for the safety and health of employees during the hours and at the places of their employment. Standards of health and safety shall be submitted by the Supplementary Code Authority to the Admin- istrator within three (3) months after the effective date of the Supplementary Code. Article V — Cost Finding The Supplementary Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all mem- bers of the Industry, and shall submit such methods to the Admin- istrator for review. If approved by the Administrator, full infor- mation concerning such methods shall be made available to all mem- bers of the Industry. Thereafter, each member of the Industry shall utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit the Supplementary Code Authority, any agent thereof, or any member of the Industry to suggest uniform additions, percentages or differentials or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or prices. Article VI — Costs and Price Cutting Section 1. If the Administrator, upon application of the Supple- mentary Code Authority or any member of the Industry, after investigation, shall at any time find that as to this Industry or as to any district within the Industry both (1) that any emergency has arisen within the Industry or within the district adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of stated minimum prices for a specified product or service within the Indus- try or within the district for a limited period is necessary to miti- gate the conditions constituting such emergenc}^ and to effectuate the purposes of the Act, the Supplementary Code Authority may cause an impartial agency to investigate the costs and to recom- mend to the Administrator a determination of the stated minimum price of the product or service affected by the emergency and there- upon the Administrator may proceed to determine such stated minimum price. Section 2. When the Administrator shall have determined such stated minimum price for a specified product or service for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Recovery Administration, he shall publish such price. Thereafter during such stated period no member of the Industry shall sell such specified products or services within any district for which such price has been fixed at a net realized price below said stated minimum price, and any such sale shall be deemed destructive price cutting and an unfair method of competition. From time to time the Supplementary Code Authority may recommend a review or reconsideration, or the Administrator may cause any determina- tion hereunder to be reviewed or reconsidered and appropriate action taken. 11 Article VII — Publication of Price Section 1. The District Code Committee in any district may pre- pare a list of all articles which are standard articles upon which the service of plating, re-plating, finishing, or re-finishing, is generally performed within that district and shall submit such list to the members of the Industry located within the district as a tentative list of products upon which each member of the Industry perform- ing industry services for customers residing within the district shall be required to publish his prices and terms and conditions of sale. Whenever the members of the Industry operating within such district who employ at least 60% of the employees engaged bjr the members of the Industry in that district, shall have approved such list of standard products or any modification thereof and the same shall have been approved by the Administrator, the District Code Committee shall disseminate such approved list to all members of the Industry known to be located within the district or doing indus- try services for customers within the district, as the list of standard products on which each member must file with the District Code Committee, his prices, terms and conditions of sale on such services for customers residing within the district. Within ten days after the dissemination of such list each member of the Industry located within the district or performing any industry services for custom- ers located within such district shall file with the District Code Committee or its designated agency such member's prices for the plating, re-plating, finishing and re-finishing of all said standard articles and shall so publish and file all subsequent changes therein or revisions thereof, which shall be effective immediately upon receipt thereof by the filing agency. When any member of the Industry has filed any revision such member shall not file a higher price within 48 hours. Such prices, terms and conditions of sale, and changes therein or revisions thereof, as aforesaid so filed, shall, for the purpose of this Supplementary Code, be treated as the pub- lished prices, terms and conditions of sale within such districts on said standard products of the member filing the same and shall be at all times- during business hours open, at the office of said District Code Committee or its said designated agency, to all interested parties. Promptly after receipt thereof the District Code Commit- tee, or its designated agency, shall send, or cause to be sent, a copy of all such prices, terms and conditions of sale and all changes therein or revisions thereto to each member of the Industry known to be located within the District or doing work for customers located within the district, or who shall have so filed his prices, terms and conditions of sale or to any other interested party who shall have registered his name and address with the filing agency and who shall pay the cost involved. Section 2. No member of the Industry shall offer for sale, quote on, or sell to any customer or prospective customer residing within the district, any of its products or services at a price or upon terms and conditions other than those stated in such member's published prices, terms and conditions of sale and changes therein or revisions thereof published and filed by such member in such district, except to another member of the Industry who is complying with the provi- 12 sions of the Supplementary Code and paying his pro rata share of the expense thereof. Section 3. If at any time hereafter the Administrator shall give his approval to the requirement that subsequent changes or revisions of any prices, terms or conditions of sale, as provided in Section 1 hereof, shall be filed a specific period of time prior to the effective date thereof, the Supplementary Code Authority may provide that all changes in such price lists, terms or conditions of sale, or revisions thereof thereafter filed, shall be published or filed ten days, or such other period of time as may be approved by the Administrator, prior to the effective date of any such subsequent changes or revisions. All the provisions of Section 1 of this Article, with respect to making prices, terms and conditions of sale so filed, open to all interested parties and with respect to dissemination of the same, and all provi- sions of Section 2 of this Article shall be applicable as to any prices, terms or conditions of sale filed in accordance with this Section 3. Any member may file with the said District Code Committee or its said agency such changes in his prices or terms and conditions of sale as may re required to meet the changes filed by another member. Changes so filed shall become effective on the same date as the effective date for the changes of such other member first filing as aforesaid, or, if those changes shall have already become effective, then the changes subsequently filed as aforesaid shall become effective immediately upon receipt thereof by the filing agency. Article VIII — Unfair Trade Practices Superseding all of the unfair trade practices covered by Article V of the Basic Code the following described acts shall constitute unfair trade practices and any member of the Industry who shall, directly or indirectly through any officer, employee, agent, or repre- sentative, use or employ any of such unfair practices shall be guilty of a violation of this Supplementary Code. Rule 1. No member of this Industry shall sell industry products or perform any services within the scope of the Industry upon terms more favorable than 1 percent for cash payment within 10 days, 30 days net; provided, however, that the cash discount may be allowed for cash payment on or before the 25th day of the month on all invoices issued from the first to the fifteenth day of the month, both inclusive, and the 1 percent discount may be allowed for cash pay- ment on or before the 10th day of the following month on all invoices issued from the 16th day to the last day of the month, both inclusive. Rule 2. No member of the Industry shall make or cause or know- ingly permit to be made or published any false, materially inaccurate, or deceptive statement by way of advertisement, or otherwise, con- cerning the grade, quality, quantity, thickness of deposit, substance, character, nature, or finish or preparation of any product of the Industry or the credit terms, policies, or services of any member of the Industry, or otherwise, having the tendency or capacity to mislead or deceive customers or prospective customers. Rule 3. No member of the Industry shall knowingly withhold from or insert in any contract, quotation, or invoice, any statement that makes it inaccurate in any material particular. 13 Rule 4. No member of the Industry shall give, permit to be given or 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 employer, principal or part}*. This provision shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles 1 are actually used for commercial bribery as hereinabove defined. Rule 5. No member of the Industry shall secretly make or offer to 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 a member of the Industry secretly offer or extend to any customer any special service or privilege not ex- tended to all customers of the same class for the purpose of influ- encing a sale. Rule 6. No member of the Industry shall willfully induce or attempt to induce the breach of existing contracts between competi- tors and their customers by any false or deceptive means, or interfere with or obstruct the performance of any such contractual duties or services by any such means, with the purpose and effect of ham- pering, injuring, or embarrassing competitors in their business. Rule 7. No member of the Industry shall defame a competitor by falsely imputing to him dishonorable conduct, inability to per- form contracts, questionable credit standing, or by other false rep- resentation, or by falsely disparaging the grade or quality of his goods or services. Rule 8. No member of the Industry shall brand or mark or pack any product of the Industry in any manner which has a tendency to or does deceive or mislead purchasers with respect to the brand, grade, quality, quantity, origin, size, substance, character, nature, finish, thickness of deposit, material content or preparation of such product of the Industry. Rule 9. No member of the Industry shall imitate or simulate the trade mark, trade name, package, wrapper, or label of a competitor's product to such a degree as to deceive or have a tendency to deceive customers. Rule 10. No member of the Indunstry shall procure, otherwise than with the consent of any member of the Industry, any infor- mation concerning the business of such member which is properly regarded as a trade secret or as confidential within its organization. Rule 11. Standard forms of quotations and contracts may be adopted by the Supplementary Code Authority, subject to approval by the Administrator. All quotations shall thereafter be made in accordance with the terms and conditions of such forms of quota- tions and all contracts shall be made in accordance with the terms and conditions set forth in any standard form of contract so adopted, and any departure by a member of the Industry from said standard terms and conditions in the making of any quotation or contract in any transaction is an unfair method of competition. 14 Article IX — Modification Section 1. As provided in Section 10 (b) of the Act, the President may from time to time c&ncel or modify any order, approval, license, rule, or regulation issued under Title I of the Act. Section 2. Such of the provisions of this Supplementary Code as are not required to be included herein bj^ the Act may, upon sub- mission to the Industry by the Administrator and approval by the President, after such hearing as the Administrator may prescribe, be modified or eliminated as changes in circumstances or experience may indicate. It is contemplated that, from time to time, supple- mentary provisions to this Supplementary Code may be submitted by the Industry for the approval of the President to prevent unfair competition in price and other unfair and destructive practices, and to effectuate the other purposes and policies of Title I of the Act, and any such supplementary provisions, after submission to the In- dustry and approval by the President, and after such hearing as the Administrator may prescribe, shall become a part of the Supple- mentary Code and effective as such. Article X — Monopolies No provision of this Supplementary Code shall be so applied as to permit monopolies, or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Article XI — Effective Date and Duration This Supplementary Code shall become effective at 12 : 01 o'clock A. M. 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 proclamation, or the Con- gress shall, by joint resolution, declare that the emergency recognized by Section 1 of Title I of the Act, has ended. Approved Code No. 84 — Supplement No. 46. Registry 1213-15. Exhibit A The Districts referred to hereinbefore in Article IV, Section 7 (h) are the Districts as defined below : District I. The states of Washington, Oregon, California, Nevada, Arizona, Utah, Wyoming, Idaho, Montana, and the territories Alaska and Hawaii. District II. The states of North Dakota, South Dakota, Nebraska, Colo- rado, Kansas, New Mexico, Oklahoma, Texas. District III. The states of Minnesota, Wisconsin, Iowa. District IV. The states of Missouri, Arkansas, Louisiana, Mississippi, the extreme western portions of Tennessee and Kentucky lying west of the Tennes- see River. District V. Those portions of the states of Tennessee and Kentucky which lie east of the Tennessee River, except Jefferson County, Ky., the states of North Carolina, South Carolina, Georgia, Florida, Alabama, and Puerto Rico. District VI. The states of Maine, New Hampshire, Vermont, Massachu- setts, Rhode Island, and Connecticut. District VII. That portion of the State of New Jersey lying north of but excluding Mercer County and North and east of but excluding Burlington County, greater New York City, Long Island and that portion of New York State which is bounded on the east by Connecticut, on the west by New Jersey and Pennsylvania and on the north by a straight line drawn as if continuing the northern boundary line of Pennsylvania in an easterly direction to the Connecticut state line. District VIII. The state of Virginia and West Virgiua excepting Marshall, Ohio, Brooke and Hancock counties ; the District of Columbia, the states of Delaware, Maryland, and that portion of the state of Pennsylvania lying east Of a line drawn through and including the cities of Gettysburg and Williams- port. Pennsylvania, and that portion of New Jersey lying southwest of and including the counties of Mercer and Burlington. District IX. That portion of Pennsylvania excepting the county of Erie, Pennsylvania, which lies west of a line intersecting the state and drawn through, but excluding, Gettysburg and Williamsport ; those portions of the state of Ohio and Indiana south of a line intersecting said states from east to west through and including Carrollton, Ohio, and Lima, Ohio, and thence through and excluding Logansport, Ind. and Kentland, Ind., to the Illinois state line. District IX shall also include the Counties of Marshall, Ohio, Brooke and Hancock in the state of West Virginia ; and the county of Jefferson in the state of Kentucky. District X. New York State lying to the north of the Pennsylvania state line and of a straight line drawn as a continuation thereof across New York StaVe to the Connecticut boundary. District XL The state of Michigan ; that portion of the states of Indiana which lies east of a line drawn through the cities of Michigan City, La Porte, and Logansport, and lying north of a line drawn through Logansport, Ind., Lima, Ohio, and Carrollton, Ohio, to the Pennsylvania state line. The city of Logansport, Ind. is included in District XI, but the cities of Michigan City and La Porte, Ind. and of Lima and Carrollton, Ohio are excluded therefrom. District XI shall also include the county of Erie, Pennsylvania. District XII. The state of Illinois ; and that portion of Indiana which lies west of a line drawn from Michigan City, Indiana, through La Porte, Ind. to Logansport, Ind. ; and that portion of Indiana which lies north of a line intersecting Indiana from East to West drawn from Lima, Ohio through Logansport and Kentland, Indiana to the Eastern Boundary of the State of Illinois. The cities of Michigan City, Ind., La Porte, Ind., and Kentland, In- diana are included in District XII, but the city of Logansport, Indiana is excluded therefrom. (15) o UNIVERSITY OF FLORIDA 3 1262 08582 8415