NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MINE CAR MANUFACTURING
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON FEBRUARY 5, 1935
ENMENT PRINTING OFFICE
For sale by the Superintendent of Documents. Washington, D.C. - Price 5 cents
Approved Code No. 347-Supplement No. 47
Registry No. 1414-12
This publication is for sale by the Superintendent of Documents, Government
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Approved Code No. 347-Supplement No. 47
SUPPLEMENTARY CODE OF FAIR COMPETITION
MINE CAR MANUFACTURING INDUSTRY
As Approved on February 5, 1935
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MINE CAR
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 Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Mine Car Manufacturing
Industry, a Subdivision of the Machinery and Allied Products In-
dustry, and hearing having been duly held thereon and the an-
nexed 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, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise, does hereby incorporate
by reference said annexed report and does find that said Supple-
mental Code complies in all respects with the pertinent provisions
and will promote the policies and purposes of said Title of said
Act; and does hereby order that said Supplemental Code of Fair
Competition be and it is hereby approved subject to the following
(1) That the provisions of Article VII, Section 2, insofar as
they prescribe a waiting period between the filing with the Code
Authority (i. e. actual receipt by the Code Authority) and the effec-
tive date of revised price list or revised terms and conditions of sale,
be stayed and they are hereby stayed pending the further order of
the National Industrial Recovery Board.
(2) That the words "on the date specifie1i therein but any re-
vision must be filed with the agent five (5) days in advance of the
effective date as specified ", be deleted from the fourth sentence of
Section 2 of Article VII and the words "immediately upon receipt
thereof by said agent substituted therefore.
113795 ---1573-20--35 1 \
(3) That the seventh sentence of Section 2, Article VII, reading:
"Any employer receiving any such list or revision, may thereupon
file, if he so desires, a revision of his price terms, specifying an
effective date that may be on or after the effective date of such re-
vision first filed," be deleted.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Officer.
BARTON W. MURRAY,
WASHINGTON, D. C.,
February 6, 1935.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Supplemental Code of Fair Compe-
tition for the Mine Car Manufacturing Industry, a Subdivision of
the Machinery and Allied Products Industry, Public Hearing hav-
ing been conducted thereon in Washington, D. C., September 25,
1934, in accordance with the provisions of Title I of the National
Industrial Recovery Act.
The Mine Car Manufacturing Subdivision being truly representa-
tive of the manufacturers of the products defined in Article II of the
Supplemental Code, has elected to formulate and submit a Supple-
mental Code of Fair Competition as provided in the second para-
graph of Article I of the Code of Fair Competition for the
Machinery and Allied Products Industry, approved by you on the
seveneenth day of March, 1934.
The Mine Car Manufacturing Subdivision includes the manufac-
ture for sale or lease of non-powered wheeled vehicles not exceeding
350 cubic feet level full capacity such as are customarily employed
in coal mining operations for transportation of coal from the point
of its dislodgment at the face of the operations to the tipple or to
the place where it is used, processed, stored or committed to other
transportation facilities; and chilled cast iron mine car wheels; and
parts and repair parts for such vehicles, except those manufactured
under any other approved code.
Statistical material bearing on this Subdivision was obtained from
the Code application submitted by the Mine Car Manufacturing
Industry. This Industry as represented by the Mine Car Manu-
facturing Employers claims to represent 90 per cent of the Sub-
division as defined in Article II, Section 3, of the Supplemental
Code of Fair Competition for the Mine Car Manufacturing
Annual sales in 1933, according to the Mine Car Manufacturing
Industry, declined to slightly less than one-third of the 1929 level.
In 1929 sales were reported as $7,668,520, and in 1933 as $2,529,967.
Estimates showing employment for the entire Subdivision, sub-
mitted by the Mine Car Manufacturing Industry in their Code appli-
cation, indicated that employment declined from 1,651 in 1929 to 1,323
in 1933, or 19.8 per cent.
RESUME OF SUPPLEMENTAL CODE
Article I states the purposes of the Supplemental Code.
Article II accurately defines specific terms applicable to the sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment pro-
visions of the National Industrial Recovery Code of the Machinery
and Allied Products Industry, as approved by you and as from time
to time amended.
Article IV provides for the adoption of Articles II, VI and IX of
the National Industrial Recovery Code of the Machinery and Allied
Products Industry, in accordance with the conditions of this Article
governing their adoption.
Article V provides for the operation of a Code Authority and
defines its powers and duties.
Article VI sets forth methods of procedure wherein bids and/or
proposals are concerned.
Article VII provides for price filing and opposes price fixing.
Article VIII provides for rates of discounts, installments, leasing
of products of this Subdivision and period of free discount.
Article IX sets forth unfair trade practices for this Subdivision.
Article X states that no provision of this Supplemental Code
concerning pricing and marketing (Articles VI, VII and VIII) shall
apply to export sales as defined by the term "Export" in this
Article XI provides that this Supplemental Code and all the pro-
visions thereof are expressly made subject to the right of the Presi-
dent, 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 Title I of the Act. Provision is
also made that modifications may be submitted by the Code Author-
ity to the National Industrial Recovery Board for approval.
Article XII states that no provision of this Supplemental Code
shall be applied so as to permit monopolies or monopolistic practices,
or to eliminate, oppress, or discriminate against small enterprises.
Article XIII states the effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to the
National Industrial Recovery Board on said Supplemental Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
The National Industrial Recovery Board finds that:
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting the
fullest 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 the National Industrial Recovery
Board as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title or said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
applicant group is an individual group truly representative of the
aforesaid Subdivision; and that said group 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
eliminate 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, the National Industrial Recovery
Board has approved this Supplemental Code, staying and deleting
certain provisions related to price filing as stated in the Order.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
FEBRUARY 5, 1935.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE MINE CAR MANUFACTURING INDUSTRY *
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the Mine Car Manufacturing
Subdivision of the Machinery and Allied Products Industry and
together with the Code of Fair Competition of the Machinery and
Allied Products Industry, shall be the standards of fair competition
for this Subdivision and shall be binding on every employer therein.
SECTION 1. "Applicant" means the Mine Car Manufacturing
SECTION 2. Industry "means the Machinery and Allied Products
Industry as defined in its Code of Fair Competition as approved
by the President, March 17, 1934, and as such definition iliay from
time to time be amended.
SECTION 3. "Subdivision" means this Mine Car Manufacturing
Subdivision of the Machinery and Allied Products Industry as de-
fined and set forth in definition number 50 of Article II of the Code
of Fair Coipet ition for the Machinery and Allied Products Industry
"Mine Car Man ufacturing Subdivision means the manufacture
for sale or lease of non-powered wheeled vehicles not exceeding 350
cubic feet level full capacity such as are customarily employed in
coal mining operations for transportation of coal from the point
of its dislodgment at the face of operations to the tipple or to the
place where it is uied, processed, stored or committed to other trans-
portation facilities; and chilled cast iron mine car wheels; and parts
and repair parts for such vehicles except those manufactured under
any other approved code.
SLCTI.!N 4. Code means the Code of Fair Competition for the
Machinery and Allied Products Industry as approved by the Presi-
dent, Ma rch 17, 1934, and as from time to time a mended.
SLCTION 5. Supplemental Code means this Supplemental Code
for the Mine Car Manufacturing Subdivision of the Machinery and
Allied Products Industry.
SECTION 6. "Basic Code Authority" means the Code Authority
of the MIachinery and Allied Products Industry as constituted by
SECTION 7. Code Authority means the Code Authority consti-
tuted for this Subdivision as provided by the Code and by this
SECTION 8. "Affiliated Company" means any corporation vhich
is a member of an affiliated group of which an employer is also a
member. Such corporation shall be deemed to be an affiliated com-
pany of such employer within the meaning of this Code. An affili-
ated group as used in the foregoing statement means one or more
corporations connected through stock ownership with a common par-
ent corporation if the stock of each of said corporations (except
such common parent corporation) is substantially wholly owned
(90% or more) directly or indirectly by said common parent cor-
poration or by one or more of the other corporations, and shall
include such common parent corporation.
SECTION 9. "Person" means a natural person, a corporation, a
partnership, an association, a trust, a trustee, a trustee in bank-
ruptcy, a receiver, or other entity.
SECTION 10. "Employer" means any person engaged in this Sub-
division either on his own behalf or as an employer of labor.
SECTION 11. Employee means anyone who is employed in the
Subdivision by such employer, however compensated.
SECTION 12. The Act means Title I of the National Industrial
SECTION 13. "The President means the President of the United
SECTION 14. "Board means the National Industrial Recovery
Board or its successor in office.
ARTICLE III-EMPLOYME'NT PROVISIONS
The following Article, of the Code, viz: Article III, "Working
Hours"; Article IV, Wages "; and Article V, "General Labor
Provisions ", are hereby made a part of this Supplemental Code,
with the same effect as if they were written into this Supplemental
ARTICLE IV-ADoPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Code, viz: Article II, "Definitions ";
Article VI "Administration ", to the extent that they shall be appli-
cable to this Supplemental Code as such or as it may hereafter be
administered as an autonomous Code; and Article IX, "With-
drawal ", are hereby adopted and made a part of this Supplemental
Code, with the same effect as if they were written into this Sup-
A Code Authority is hereby constituted to administer and facili-
tate the enforcement of this Supplemental Code.
SEC rON 1. During a period not to exceed thirty (30) days follow-
ing the effective date of this Supplemental Code, the Code Committee
duly elected from and by the representatives of employers of the
Subdivision, and functioning at the date this Supplemental Code
is approved, shall be the Temporary Code Authority. The Board,
in its discretion, may appoint one additional member (without vote
and without expense to the Subdivision).
SECTION 2. Within said thirty (30) days' period, the Temporary
Code Authority shall, on at least twelve (12) days' notice (from
date of mailing) by registered mail to all known employers, call
a meeting of the Subdivision for the adoption of Procedural Rules
and Regulations, and for the election of a permanent Code Author-
ity which shall consist of seven (7) members elected by and from
the employers in the Subdivision entitled to vote as provided in
Section 8, of this Article V, each member to serve for a term of one
year or until his successor shall have been elected and qualified, or
the Code shall have been terminated. The Board, in its discretion,
may appoint one additional member (without vote and without
expense to the Subdivision). The Permanent Code Authority so
elected shall immediately supersede the Temporary Code Authority.
SECTION 3. Action by employers in all Subdivision meetings,
including the election of permanent Code Authority, adoption of
Procedural Rules and Regulations and the transaction of other
business of the Subdivision except additions to or revisions of this
Supplemental Code and withdrawal from the Basic Code, shall be
by a majority vote of employers entitled to vote as provided in
Section 8 of this Article V who are present in person or by proxy
duly executed and filed with the Code Authority, cast and computed
concurrently by each of the two following methods:
1. By one vote of each employer.
2. By vote of employers weighted on the basis of one vote for
each $200,000 of the total domestic net sales of the Subdivision
billed f. o. b. plant by each employer for the preceding three (3)
calendar years. The votes so determined shall apply throughout
the then current year. Each employer shall be entitled to at least
SECTION 4. 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 Board may prescribe such hear-
ings as it may deem proper; and thereafter if it shall find that the
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 Code Authority.
SECTION 5. Any vacancy on the Code Authority due to death,
resignation, or loss of voting qualifications or because a member
thereof has ceased to be connected with the Subdivision, shall be
filled at a meeting of employers called by the Code Authority on
at least twelve (12) days' (date of mailing) notice sent by registered
mail to all employers, and by a vote similar to the vote by which
the retired member was originally selected.
SECTION 6. (a) Each employer shall keep accurate and complete
records of all transactions whenever such records may be required
under any of the provisions of this Supplemental Code, and shall
furnish accurate reports based upon such records concerning any
of such activities when required by the Code Authority or the
Board. If the Code Authority or the Board shall determine that
substantial doubt exists as to the accuracy of such reports, so much
of the pertinent books, records and papers of such employer as may
be required for the verification of such reports may be examined
by an impartial agency, agreed upon between the Code Authority
and such employer, or, in the ab-ence of agreement, appointed by
the Board. In no case shall the facts disclosed by such examination
be made available in identifiable form to any competitor, whether on
the Code Authority or otherwise, or be given any other publication,
except such as may be required for the proper administration or
enforcement of the provisions of this Supplemental Code.
(b) Such investigation or audit may be made under the Code
Authority, as above, not only upon receipt of a formal complaint
of violation, but when the Code Authority in pursuance of the proper
exercise of its powers believes in good faith, in the absence of a for-
mal complaint, that a prima facie violation of this Supplemental
Code has occurred.
SECTION 7. If the Board shall have reason to believe that any
action of the Basic Code Authority or of any Code Authority or of
any agency of any of them, may be violative of the provisions
of this Supplemental Code or unfair, unjust or contrary to public
policy, the Board, after having notified and conferred with the
Basic Code Authority or the Code Authority or the authorized
representative thereof, or after ten (10) days have elapsed from date
of such notification without response from such Code Authority,
may require, by notice that such action be suspended for some defi-
nite period not exceeding thirty (30) days. Within fifteen (15)
days from the date of such suspension, the Basic Code Authority
or the Code Authority shall further consider such action and deter-
mine (a) whether or not it will continue with such action, as not
violative of the Code or of this Supplemental Code, or (b) whether
it will proceed with some modified action, and notify the Board
of such determination. If such determination is approved by the
Board, or is not by it disapproved within fifteen (15) days there-
after, such determination shall become effective and such suspension
be automatically terminated. If the Board shall disapprove such
determination within fifteen (15) days, such action shall be per-
SECTION 8. Any employer shall be entitled to vote at the election
of the permanent Code Authority and at other meetings of employers
and share in the benefits of the activities of Code Authority and
participate in any endeavors of Code Authority in the preparation
of any amendments or revisions of, or addition or supplements to,
this Supplemental Code by paying or agreeing to pay, unless duly
exempted, as and when assessed, his proper pro rata share of the
reasonable cost of administering this Supplemental Code as deter-
mined by Code Authority. The pro rata share shall be computed
on the basis of the employer's total domestic net sales billed f. o. b.
plant averaged over the two preceding years and the total domestic
net sales billed f. o. b. plant of the Subdivision averaged over those
same two years.
SECTION 9. Nothing contained in this Supplemental Code shall
constitute employers or members of the Code Authority as partners
for any purpose. Nor shall any member of the Code Authority, ex-
ercising reasonable diligence in the conduct of his duties hereunder,
be liable in any manner to anyone for any action of any other mem-
ber, officer, or employee of the Code Authority or be liable to anyone
for any action, or omission to act, under the Code or this Supple-
mental Code except for his own wilful misfeasance or nonfeasance.
The Code Authority shall be deemed to have discharged its full duty
in respect to any violation or alleged violation of the Code or this
Supplemental Code when it shall have exercised such powers as are
conferred upon it, and in the event of its inability to procure com-
pliance with the provisions of the Code, or this Supplemental Code,
shall have certified the facts and made available all pertinent infor-
mation with respect to such violation or alleged violation to the
Board or other appropriate Governmental Authority and thereafter
stood prepared to render all proper assistance to the Board or other
appropriate Governmental Authority to enable such body to pro-
cure enforcement thereof.
ARTICLE VI-CONCERNING BIDS
In each case wherein one or more employers shall be invited to sub-
mit proposals or bids to manufacture or build and sell or lease any
mine cars or complete mine car parts, each employer so invited shall
within forty-eight (48) hours after receipt by him or it of such in-
vitation notify in writing a confidential and disinterested agent des-
ignated by the Code Authority of the receipt of such invitation, the
name of the customer inviting the proposals or bids, the number and
kind of mine cars and/or complete mine car parts with respect to
which the proposals or bids are invited, the date, if any, on or by
which the proposals or bids are to be submitted to the customer and
whether or not such employer intends to submit a proposal or bid.
Each employer submitting a proposal or bid shall: (a) reduce the
same to writing; (b) state therein, among other things, terms of pay-
ment and delivery and the price, including the price of such alter-
nates as shall be required or proposed; (c) coincident with the sub-
mission to the customer (but not earlier) of such proposal or bid,
send by mail or cause to be delivered (whichever shall be the more
expeditious method of transmittal), a sealed, full, true, and correct
copy of such proposal or bid to the agency designated by the Code
Authority for the purpose. The agency designated as aforesaid shall
on the date on or by which the proposals or bids are to be submitted
to the customer as stated in the invitation for bids, or in these cases
for which no closing date has been specified, upon the receipt by it of
proposals or bids from all the employers who or which shall, as
aforesaid, have notified it of their intention to submit proposals or
bids, open the sealed copies which shall have been deposited with said
agency and send by mail or cause to be delivered (whichever shall
be the more expeditious method of transmittal) to each employer
from whom or which it shall have received a copy of a proposal or
bid in respect to any given mine cars and/or complete mine car parts,
a copy of every proposal or bid received by it from each other em-
ployer in respect to such products; provided, however, that no de-
tailed specifications or drawings shall be delivered or revealed to any
employer. A bidding employer failing or refusing in any case in
accordance with the foregoing to submit a written proposal or bid
and/or deliver a copy thereof to the said designated agency shall be
guilty of a violation of this Supplemental Code. Nothing contained
in this article shall preclude any employer submitting more than one
proposal or bid pursuant to any invitation to bid; provided that all
such proposals or bids shall conform to the current filed prices of
the bidding employer; and provided further, that copies of all pro-
posals or bids shall be submitted, as above provided, to the confi-
dential and disinterested agent who shall immediately notify by
telegram or telephone all employers who have submitted proposals
or bids on the same inquiry. Nothing in this Article VI shall super-
sede any Federal, State, or Municipal statute or regulation.
ARTICLE VII-OPEN PRICE FILING
SECTION 1. It shall be the duty of the Code Authority, after con-
ferring with all the employers of the Subdivision, to adopt a sched-
ule or classified list of component parts of the products of the
Subdivision. Such schedule or classified list shall be distributed to,
and become the current schedule or classified list of the products of,
(a) Each employer shall cooperate in the compiling and mainte-
nance in a current up-to-date condition of the above lists by furnish-
ing to the Code Authority such information regarding the details
of all conponent parts of products of the Subdivision manufactured
by such employer as may be required by the Code Authority for the
compiling and maintenance of said lists.
SECTION 2. Each employer shall file with the confidential and
disinterested agent designated by the Code Authority, identified
lists of all of his prices, discounts, rebates, allowances, and all other
terms or conditions of sale or lease hereinafter in this Article
referred to as "price terms ", which lists shall completely and accu-
rately conform to the individual pricing practices of said employer.
Such lists shall contain the price terms for all such component parts
of products of the Subdivision as covered by Section 1 of this Article
VII, as are sold or offered for sale or lease by said employer. Said
price terms shall in the first instance be filled within ten (10) days
after the effective date of this Supplemental Code. Price terms
and revised price terms shall become effective on the date specified
therein but any such revision must be filed with the agent five (5)
days in advance of the effective date as specified. Immediately
upon receipt thereof, said agent shall by telegraph or other equally
prompt means notify said employer of the time of such receipt.
Such lists and revisions, together with the effective time thereof,
shall upon receipt be immediately and simultaneously distributed
to all employers and to all of their customers who have applied
therefore and have offered to defray the cost actually incurred by the
Code Authority in the preparation and distribution thereof and be
available for inspection by any of their customers at the office of such
agent. Any employer receiving any such list or revision, may there-
upon file, if he so desires, a revision of his price terms, specifying an
effective date that may be on or after the effective date of such revi-
sion first filed. Said lists or revisions or any part thereof shall not
be made available to any person until released to all employers and
their customers, as aforesaid; provided, that prices filed in the
first instance shall not be released until the expiration of the afore-
said ten (10) day period after the effective date of this Supplemental
Code. The Code Authority shall maintain a permanent file of all
price terms filed as herein provided, and shall not destroy any part
of such records except upon written consent of the Board. Upon
request the Code Authority shall furnish to the Board or any duly
designated agent of the Board copies of any such lists or revisions
of price terms.
When any employer has filed any revision, such employer shall
not file a higher price within forty-eight (48) hours.
No employer shall sell or lease or offer to sell or lease any products
of the Subdivision for which price terms have been filed pursuant
to the provisions of this Article, except in accordance with such
No employer shall enter into any agreement, understanding, com-
bination or conspiracy to fix or maintain price terms, nor cause or
attempt to cause any employer to change his price terms by the use
of intimidation, coercion, or any other influence inconsistent with
the maintenance of the free and open market which it is the purpose
of this Article to create.1
SECTION 3. Nothing in Article VII or Article VIII af this Supple-
mental Code shall be deemed to apply to or affect the sale of any
product by any employer to an affiliated company of such employer,
when such product is for use and not for resale.
ARTICLE VIII-PRICES AND TERMS OF PAYMENT
SECTION 1. The maximum rates of discount and maximum periods
of free credit shall be those hereinafter set forth. All invoices for
products of the Subdivision sold by any employer after the effective
date of this Supplemental Code shall be dated not later than the date
of the shipment of the products covered thereby.
SECTION 2. A maximum cash discount of 1% may be allowed on
invoices covering all products for payment within ten days from
the date of such invoices, provided, however, that any employer may
allow such discount of 1% for payment within ten days on the basis
of settlements twice in each month, as follows:
(a) On invoices for products dated from the 1st to the 15th,
inclusive, of any month such discount may be allowed on payment of
such invoices on or before the 25th of such month;
(b) On invoices for products' dated from the 16th to the end of
any month, such discount may be allowed on payment of such
invoices on or before the 10th of the next following month.
SECTION 3. Any discount allowed in accordance with the provisions
of this Article shall apply only to the invoiced value of the products
specified therein and not to any part of the transportation charges
on such products.
SECTION 4. Whenever any employer elects to sell products of the
Subdivision on the basis of installment payments, or by leasing
arrangement subject to conditions providing for ultimate purchase
by the customer, or by outright lease, all such agreements between
employer and customer shall be in writing. For the purpose of this
Supplemental Code, leasing of the products of this Subdivision by
the manufacturer thereof are hereby made a part of and subject to
a See paragraph 2 (1), (2), and (3) of order approving this Code.
this Code of Fair Competition. No employer shall use a lease form
of contract for the purpose of evading the pricing practices estab-
lished herein nor any other provision of this Code. Title in such
products so leased or sold shall not pass to customer prior to liquida-
tion of unpaid balance.
ARTICLE IX-UNFAIR TRADE PRACTICES
For all purposes of this Supplemental Code the acts hereinafter
described in this Article shall constitute Unfair Practices and the
use or employing of them or any part of them by an employer shall
be deemed a violation of this Supplemental Code.
SECTION 1. Publishing advertising (whether printed, radio, dis-
play, or of any other nature), which is misleading or inaccurate in
any material particular, or misrepresenting in any way any goods
(including but without limitation its use, trade mark, grade, quality,
quantity, origin, size, substance, character, nature, finish, material,
content or preparation) or credit terms, values, policies, services,
or the nature or form of the business conducted.
SECTION 2. Knowingly withholding from or inserting in any quo-
tation or invoice any statement that makes it inaccurate in any
SECTION 3. Defaming a competitor by falsely imputing to him
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representation, or by falsely dis-
paraging the grade or quality of his goods.
SECTION 4. Publishing or circulating unjustified or unwarranted
threats of legal-proceedings, which tend to, or have the effect of,
harassing competitors or intimidating their customers.
SECTION 5. Secretly offering or making any payment or allowance
of a rebate, a refund, commission, credit, unearned discount or excess
allowance, whether in the form of money or otherwise or secretly
offering or extending to any customer any special service or privilege
not extended to all customers of the same class, for the purpose of
influencing a sale.
SECTION 6. Giving, permitting to be given, or offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee, the principle
of such agent or the represented party, without the knowledge of
such employer, principal, or party. This provision shall not be
construed to prohibit. free and general distribution of articles com-
monly used for advertising except so far as such articles are actually
used for commercial bribery as hereinabove defined.
SECTION 7. Using or substituting any material or process of manu-
facture superior or inferior to that contemplated in the purchaser's
specification without proper charge or allowance, to the purchaser.
SECTION 8. Inducing or attempting to induce,, by any mn:an-, any
party to a commercial contract with any employer to violate such
SECTION 9. Aiding or betting any person, firm, association, or
corporation in any unfair trade practice under this Supplemental
UNIVERSITY OF FLORIDA
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SECTION 10. Making or giving any purchaser of any product, any
guaranty or protection in any form against decline in the market
price of such product.
SECTION 11. Making any sale or contract of sale of any product
under any description which does not describe such product in terms
customarily used in the Subdivision.
ARTICLE X-SALES FOR EXPORT
The provisions of this Supplemental Code concerning pricing and
marketing (Articles VI, VII, and VIII) shall not apply to direct
export sales of any product or to sales of any product destined ulti-
mately for export. 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 located in such territory or possession.
SECTION 1. As provided by Title I, 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 said Title of
SECTION 2. Any amendments, additions, revisions, or supplements
to this Supplemental Code, proposed by the Code Authority, and
approved by two-thirds of all the votes which might be cast at the
meeting if all the employers entitled to vote were present and voting,
shall be in full force and effect upon approval by the Board. Eligi-
bility requirements, method, and effect of voting shall be the same
as provided in Sections 3 and 8 respectively of Article V hereof.
No provision of this Supplemental Code shali be-applied so as to
permit monopolies or monopolistic practices, or to eliminate, oppress,
or discriminate against small enterprises.
ARTICLE XIII-EFFEcTVE DATE
This Supplemental Code shall become effective and binding on all
employers on the eleventh day after its approval and shall continue
in effect until June 16, 1935, or the earliest date prior thereto on
which the President shall, by proclamation, or the Congress shall,
by joint resolution, declare that the emergency recognized by Section
1 of the Act, has ended.
Approved Code No. 347-Supplement No. 47.
Registry No. 1414-12.