^ Approved Code No. 84 — Supplement No. 40 Registry No. 1114—14 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CUT TACK WIRE TACK, AND SMALL STAPLE MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON JULY 6, 1934 WE DO OUR PART Ul 1 I « * • ' '■- U.S. DEPOSITORY 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. 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Approved Code No. 84 — Supplement No. 40 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CUT TACK, WIRE TACK, AND SMALL STAPLE MANUFACTURING INDUSTRY As Approved on July 6, 1934 ORDER Approving Supplementary Code or Fair Competition for the Cut Tack, Wire Tack, and Small Staple Manufacturing 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 com- pliance 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 Fabri- cated 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 Cut Tack, Wire Tack, and Small Staple Manufacturing 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 Pres- ident, including Executive Order No. 6513-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 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 upplementary Code of Fair Competition be and it is hereby ap- proved ; provided, however, that the provisions of Article VII, Sec- tion 1, insofar as they prescribe a waiting period between the filing with the Supplementary Code Authority (or such agency as may be designated in the Supplementary Code) and the effective date of price lists, as originally filed and/or revised price lists or revised terms and 72434°^— 829-29 34 (1) 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 Administrator. Washington, D.C., July 6, 1934. REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplementary Code of Fair Com- petition for the Cut Tack, Wire Tack, and Small Staple Manufac- turing Industry, a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., February 6, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Cut Tack, Wire Tack, and Small Staple Manufacturing Industry being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of sub- mitting 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 Sup- plementary 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 establishes a Supplementary Code Authority consisting of five (5) members to be elected 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 an accounting system and methods of cost finding and /or estimating. Article VI covers the selling below cost provisions but does not prohibit sales below cost to meet competition. Article VII provides for the filing of price lists and discount sheets with the Supplementary Code Authority. (3) Article VIII sets forth the unfair trade practices of this Supple- mentary Codes which has been especially designed to offset unfair competition in this division of the Industry. Article IX provides against monopolies and monopolistic practices. Article X contains the mandatory provisions contained in Section 10 (b) and also provides for the submission of proposed amendments to the Supplementary Code. Article XI, recognizes that price increases be limited to actual additional increases in the seller's cost. Article XII states the effective date and duration of this Supple- mentary Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter : I find that: (a) Said Supplementary Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organ- ization 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 purchas- ing 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) T]ie Supplementary Code as approved complies in all re- spects with the pertinent provisions of said Title of said Act, in- cluding 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 in- equitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not per- mit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not 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 Article VII, Sec- tion 1, insofar as they prescribe a waiting period between the filing with the Supplementary Code Authority (or such agency as may be designated in the Supplementary 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. Respectfully, Hugh S. Johnson, A d minis t rat or, July G, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CUT TACK, WIRE TACK, AND SMALL STAPLE MANUFACTURING INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a supple- mentary Code of Fair Competition for the Cut Tack, Wire Tack and Small Staple Manufacturing 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 of the United States 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 thereof. Article II — Definitions Section 1. The term "Cut Tack, Wire Tack and Small Staple Manufacturing Industry ", hereafter referred to as the Industry, is defined to mean the manufacture for sale of Cut Tacks, Wire Tacks, Double Pointed Tacks and Small Staples, manufactured from ferrous and/or non-ferrous metals or alloys. Section 2. The term " employee ", as used herein, includes anyone engaged in the Industry and all persons however compensated, except a member of this Industry. Section 3. The term " employer ", as used herein, includes anyone by whom any such employee is compensated or emploj^ed. Section 4. The term " member of the Industry ", as used heroin, includes, but without limitation, any individual, partnership, asso- ciation, corporation, or other form of enterprise engaged in the Industry either as an employer or on his or its own behalf. Section 5. The terms " President", "Act", and "Administrator", as used herein, shall mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 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 2nd day of November, 1933. (G) Section 7. The term " Supplementary Code Authority ", as used herein, means the agency which is to administer this Supplementary Code as hereinafter provided. Section 8. The term " Institute ", as used herein, is defined to mean the American Institute of Tack Manufacturers, or its successor. Section 9. The term " Federation ", as used herein, is defined to mean the Fabricated Metal Products Federation, or its successor. Section 10. The term " Confidential Agent " as used herein, is defined to mean the impartial agency designated by the Supple- mentary Code Authority. Section 11. The term " Supplementary Code Committee " as used herein, is defined to mean the committee authorized to present this Supplementary Code. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and without limitation the wage, hour, and labor provisions in Article III of its Basic Code as approved by the President, November 2, 1933, including Section 1 of said Article III by which the provi- sions of subsections (1), (2) and (3) of Section 7 (a) of Title I of the Act are made conditions of this Code, are specifically incorpo- rated herein and made a part hereof as the wage, hour, and labor provisions of this Supplementary Code. Article IV — Organization and Administration Section 1. During the period not to exceed sixty (60) days fol- lowing the effective date of this Supplementary Code, the Supple- mentary Code Committee of the Industry who are presenting this Supplementary Code shall constitute a Temporary Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplemen- tary Code Authority consisting of five members to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten days' notice sent by mail to all members of the Industry whose names may be ascertained after diligent search, who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following annual meeting of the Institute, and there- after, members of the Supplementary Code Authority shall be elected by the members of the Industry at a meeting of the Industry to be held at the time and place of each annual meeting of the Institute to serve until the following annual meeting. The members of the Supplementary Code Authority shall be elected in the fol- lowing manner : (a) Two members, who shall be members of the Institute and members of the Industry by a majority vote of all the members of the Institute who assent to this Supplementary Code present in person or by proxy, each member to have one vote. (b) One member, who shall be elected from the non-members of the Institute, by a majority vote of the non-members of the Institute who assent to this Supplementary Code, present in person or by proxy, each non-member to have one vote. 8 In the event that the non-members fail to elect such non-member of the Supplementary Code Authority, then the Administrator may appoint such non-member from a list of four non-members submitted to him by the Supplementary Code Authority as it is then constituted. (c) Two members, who shall be members of the Institute, by 51% vote of the members of the Institute who assent to this Supplemen- tary Code, present in person or by proxy, weighted on a basis of one vote for each 100 tons of actual sales of products of the Industry made during the preceding calendar year, reported to the Supple- mentary Code Authority, provided, however no one member may cast more than 25% of the total number of votes cast. A vacancy in the membership of the Supplementary Code Au- thority may be filled by majority vote of the remaining members of the Supplementary Code Authority, provided, however, that the member of the Supplementary Code Authority Avho is chosen to fill such vacancy shall be selected from the class of membership that was originally represented by the vacating member. In addition thereto the Administrator may appoint a member of the Supplementary Code Authority who without vote shall serve without expense to the Industry, unless the Supplementary Code Authority agrees to pay such expense. The representative who may be 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 association directly or indirectly partic- ipating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions on member- ship, and (2) shall submit to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amend- ments when made thereto, together with such other information as to membership, organization, and activities as is necessary to effectuate the purposes of the Act. Section 3. In order that the Supplementary Code Authority shall, at all times be truly representative of the Industry and in other re- spects comply with the provisions of the Act, the Administrator may prescribe such hearings as he may deem proper; and, there- after, 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 an appropriate modification of the Supplementary Code Authority. Section 4. It being found necessary in order to support the administration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effec- tuate 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 9 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 have been approved 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. Each member of the Industry shall pay his or its equitable con- tribution to the expenses and 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 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 insignia 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 any 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, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his own willful malfeasance or non-feasance. 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 terms of said Basic Code. Section 7. The Supplementary Code Authority shall have all the powers and duties which shall be necessary and proper to enable it to fully administer this Supplementary Code and to effectuate its purposes. Without limitation to the foregoing or any other powers or duties provided for in this Supplementary Code, this Supplementary Code Authority shall have the following specific duties : (a) To adopt By-Laws and Rules and Regulations for its proce- dure and for the administration of the Supplementary Code. (b) To obtain from the members of the Industry through its Con- fidential Agent, such information and reports as required for the administration of this Supplementary Code. In addition to informa- tion required to be submitted to the Supplementary Code Authority, the members of the Industry, subject to this Supplementary Code, shall furnish such statistical information as the Administrator may deem necessary for the purposes recited in Section 3(a) of the Act, 10 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 obligation to furnish reports to any Government agent. No individual report shall be disclosed to any other member of the Industry or any other party except to such other Governmental agency as may be directed by the Administrator. (c) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supplementary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. (d) To make recommendations to the Administrator for the coor- dination of the administration of this Supplementary Code with such other codes, if any, as may be related to the Industry. (e) To appoint a Trade Practice Committee which shall meet with the trade practice committees appointed under such other codes as ma} 7 be related to the Industry for the purpose of formulating fair trade practices to govern the relationships between employers under this Supplementary Code and under such others to the end that such fair trade practices may be proposed to the Administrator as amend- ments to this Supplementary Code and such other codes. (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 stabili- zation of emplojnnent ; including modifications of this Supplementary Code which shall become effective as part hereof upon approval by the Administrator after such notice and hearing as he may specify. Section 8. If the Administrator believes that any action of the Supplementary Code Authority or any agency thereof, may be un- fair or unjust or contrary to public interest, the Administrator may require 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. Section 9. Pursuant to the provisions of the Act, the Supple- mentary Code Authority shall have the power to investigate all com- plaints filed with it by one member of the Industry against another member of the Industry. Section 10. Every employer shall provide for the safety and health of employees during the hours and at the places of their em- ployment. Standards for safety and health shall be submitted by the Supplementary Code Anthority to the Administrator within three months after the effective date of the Supplementary Code. Article V — Accounting and Costing Section 1. With respect to that portion of his product which is within the Industry, every member of the Industry shall use an 11 accounting system for determining his allowable cost which conforms to the principles of, and is at least as detailed and complete as, the uniform method of accounting, and the uniform method of costing, to be formulated or approved by the Supplementary Code Authority and the Administrator with such variations therefrom as may be required by the individual conditions affecting any member of the Industry or group of employers, and as may be approved by the Administrator after consultation with the Supplementary Code Authority. Section 2. When the Supplementary Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Supplementary Code, the Supplementary Code Authority may cause to be deter- mined 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 approve, dis- approve, 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 Supplementary Code Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. Article VI — Selling Below Cost No member of this Industry shall sell or exchange any of the products of this Industry, at a price, or upon terms and conditions, which will result in the purchaser paying for the goods received, less than the allowable cost thereof to the seller, determined in accordance with a uniform method of costing above described in Article V; provided, however, that dropped lines, or seconds, or inventories which must be converted into cash to meet emergency needs may be disposed of by any member of this Industry, at any price and on any terms and conditions, but only if such member of tliis Industry, not less than two weeks before such disposal, has filed with the Supplementary Code Authority or its Confidential Agent, a statement in writing, setting forth the fact of, and reasons for, such proposed disposal, and provided further, that any mem- ber of this Industry may sell below his costs in order to meet com- petitive prices which do not violate this Supplementary Code, and which are filed in accordance with the provisions of Article VII of this Supplementary Code, or to meet competition from products of equivalent design, character, quality, or specifications, manufac- tured outside the United States, provided that he has first so re- ported to the Supplementary Code Authority and in such report has cited the competition which caused him to take such action. Article VII — Price Lists Section 1. If the Supplementary Code Authority determines that in any branch of the Industry it lias been the generally recognized 12 practice to sell specific products on the basis of net price lists, and/or price lists and discount sheets, and/or a schedule of net differentials and base prices, each member of the Industry shall within ten (10) days after the effective date of this Supplementary Code file with the Supplementary Code Authority a net price list, and/or price lists and discount sheets, and/or a schedule of net differentials and base prices, as the case may be, individually prepared by him, and in such form and for such products as the Supplementary Code Authority may prescribe, showing his current prices, or prices and discounts, and terms of sale and payment, and the Supplementary Code Authority shall immediately send copies thereof to all manu- facturers of such specified product whose names may be ascertained after a diligent search. Such prices shall be available to all inter- ested parties at the office of the Confidential Agent. Revised price lists and/or discount sheets and/or schedule of net differentials and base prices, and/or all other conditions of sale, may be filed from time to time thereafter with the Supplementary Code Authority by any manufacturer of such product to become effective ten (10) business days after actual receipt by the Supple- mentary Code Authority through its Confidential Agent. Copies of such revised price lists and/or schedule of net differentials and base prices, and/or all other conditions of sale, with notice of effec- tive date specified, shall be immediately sent to all manufacturers of such products whose names may be ascertained after a diligent search, and shall be available to all interested parties at the office of the Confidential Agent. 1 Section 2. If and when the Supplementary Code Authority shall determine that in any branch or subdivision of the Industry not now selling its product on the basis of price lists, with or without discount sheets, and/or schedule of net differentials and base prices, with fixed terms of sale and payment, the distribution or marketing conditions in said branch or subdivision are the same as, or similar to, the distribution and marketing conditions in a branch or sub- division of the Industry where the use of price lists, with or with- out discount sheets, and/or schedule of net differentials and base prices, and other fixed conditions of sale, is well recognized, and that where the use of price lists, with or without discount sheets, and/or schedule of net differentials and base prices, with other fixed conditions of sale should be put into effect in such branch or subdi- vision, then each manufacturer of the product or products of such branch or subdivision shall, within twenty (20) days after notice of such determination, file with the Supplementary Code Authority net price lists or price lists and discount sheets, or schedule of net differ- entials and base prices, containing all other fixed conditions of sale, and such price lists and/or discount sheets, and/or schedules of net differentials and base prices, and/or other fixed conditions of sale may be thereafter revised in the manner herein above provided; provided, however, that the Supplementary Code Authority shall make no determination to place any product of the Industry (not now on a price list basis) on a price list basis, or (not now on a basis of net differentials and base price) on a basis of net differentials and base 1 See paragraph 2 of order approving this Code. 13 price, as provided in this Section 2 of Article VII unless two-thirds of the members who are at that time engaged in manufacturing such product, shall affirmatively consent that such determination be made. Section 8. To the extent permitted by the Act and subject to such rules and regulations as the Administrator may prescribe, any or all information furnished to the Supplementary Code Authority by any member of this Industry pursuant to the provisions of this Supplementary 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 members of the Industry as may be re- quired to verify the accuracy of the information so furnished. Section 4. Each member of the Industry shall furnish the Sup- plementary Code Authority for distribution with such number of copies of his price lists and/or discount sheets, and/or schedule of net idifferentials and base prices, as the Supplementary Code Au- thority may prescribe. Such price lists shall be available to all interested parties at the office of the Confidential Agent. Section 5. No member of the Industry shall sell, directly or in- directly, by any means whatsoever, any product of the Industry cov- ered by provisions of this Article VII at a price or at discounts, or on other conditions of sale more favorable to the purchaser than those provided in his own current net price lists, or price lists and dis- count sheets, or schedule of net differentials and base prices, except in accordance with the provisions set forth in Article VI. Article VIII — Unfair Trade Practices In addition to the unfair trade practices covered by Article V of the Basic Code, except Section A, and for all purposes of this Sup- plemental Code, the following described acts shall constitute unfair practices. Any member of the Industry who shall directly ? or in- directly through any officer, employee, agent or representative, use or employ any of such unfair practices shall be guilty of a violation of this Supplementary Code. Rule 1. Making or giving to any purchaser of any product any guarantee or protection in any form against decline in the invoice price of such product after date of shipment thereof. Rule 2. Combination Sales. For the purpose of influencing a sale no member of the Industry shall sell or offer to sell commodities other than products of this Industry at a price below the invoice price plus all incidental costs of such products. If and when the products of this Industry are sold in combination with products of other industries, the invoice, must clearly show the unit price of all articles listed. Rule 3. The splitting of commissions or other compensation re- ceived by an employee or agent of the seller with the buyer. Rule 4. Attempting to induce the breach of a contract between a competitor and his customer, or source of supply, or interfering with, or obstructing the performance of such contractual duties or services. Rule 5. Standardization of Products. The Supplementary Code Authority shall make studies for the establishment of classification, UNIVERSITY OF FLORIDA 3 1262 08856 0775 dimensional standards and count per pound for the products of the Industry, in cooperation with some Federal Government agency, preferably the Bureau of Standards of the United States Department of Commerce, with the view to their recommendation for adoption by the Industry and such standards when approved by a majority vote of the members of the Industry shall become the standards of this Industry, subject to the approval of the Administrator; and thereafter all members of the Industry shall follow such standards. Failure to follow the standards so established and approved will be an unfair method of competition and a violation of this Supple- mentary Code. Provided, however, that exemptions from such standards may be granted by the Administrator after consultation with the Supplementary Code Authority. Article IX — 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 X — Modifications Section 1. As provided in sub-section (b) of Section 10 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 said Act. Section 2. This Supplementary Code, except as to provisions required by the Act, may be modified or amended on the basis of experience or changes in circumstances, such modifications or amendments to be based upon application by the Supplementary Code Authority or other representative group within the Industry to the Administrator and such notice and hearing as he shall specify and to become effective and be a part of this Supplementary Code on approval by the Administrator. Article XI — Price Increases Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs should be delayed, and when made, such increases should, so far as possible, be limited to actual additional increases in the seller's costs. Article XII — Effective Date and Duration This Supplementary Code shall become effective at 12 : 01 o'clock A.M. Eastern Standard Time on the tenth day after it is approved by the President and shall continue in effect until June 16. 1935, or the earliest date prior thereto on which the President shall, by proclama- tion, or the Congress shall, by joint resolution declare that the emer- gency recognized by Title I of the National Industrial Recovery Act has ended. Approved Code No. 84 — Supplement No. 40. Registry No. 1114-14. o