UNIV. OF-FL LY.
Per sale by the Superintendent of Documnents, Washington, D.C. I Price 5 cease
Approved Code No. 347--Supplement No. 32
Registry No. 1304--05
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AIR FILTER INDUSTRY
(A Division of the 1Machinery and Allied Products Industry)
AS APPROVED ON JULY 21, 1934
WE DO OUR PARf
GOVERNMENT PRINTING OFFICE
This publication is for sale: by the Superintendent of Documents, Government
Printing Of~fioce, W8ashington, D.C., and by district offces of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
SBirmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customnhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commrerce Building.
Chicago, Ill.: Suite 1706, 201 North Wella street.
Cleve~land, Ohio: Chamber of Commere.
Dallas. Tllex.: Chamber of Commerce Building.
Detroit, Mich: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind,: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, ]N.Y.: 734 Customhouse.
Norfolk, V~a.: 406 East Plume Stret
Philadelphia, Pa.:. 422 Cormmrcial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mto.: 506 Olive Street.
San Francisco, Catlif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building..
Approved Code No. 347?-Supplement No. 32
SUPPLEMENTARY CODE OF FAIR COMPETITION
AIR FILTER INDUSTRY
~As Approved on July 21, 19341
APRe\Norm SUPPLEMENTAL CODE OF FAIR COMPETITION FOR TH-E: .I
A DIVISON OF THE MA~CHINER~Y AND ALLIED PRODUOCTS INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National I~ndust~rial
Recovery Ac~t, approe~d June 16, 1933, for ap~proval of a Supple-
mental C~ode of Fair Competition for the Air Filter Subdivision of
Alachinery and Allied Products Industry, and a hearing having been
duly held thereon and the annexedl report on said Supplemental Code
containing findings with respect thereto, having been made and
directed to the President:
NOWl, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson Administrator for Industrial Recoveryr,
pursuant to authority vestect in me by Executive Orders of the 1Pres-
iden~t, including' Executive Order No. 6.543--, dated December 30,
1933, a~nd otherwise; do hereby incorporate by reference said annexed
report and do find that said Supplemental Code complies in all
respects wit.h t~he pertinent provisions and will promote the policy
and purposes of said Title: of said Act; and do hereby order that
said S~upplemental Code of Fair Clompetition be anld it is hereby
approved subject to the condition that the provisions of Article VIII,
Section (a), insofar as they prescribe a w-aiting period between the
filing with the Code Authority (or such agency as may7 be designated
in the Supplemnental Codle) and the etfect.ive late of price lists, as
originally filed and 'or revised price lists or revised 'terms and con-
ditions ofsale, be and they hereby are stayed pending myr further
HUGH S. JoHNSON,
Ad ministrator for Industrial Recovrer1.
BAnTON W. MUlRRAY,
July le1, 1934.
7533S" 820-12 --34 (11
Thje White Hliowes.
SIR: This Is a report on the Supplemental Code of Fair Compe-
ti~tion for the Air Filter Subdivision of the Machine~ry and Allied
Products Industry, public hearing having been conducted thereon in
,Wa-ishington, D.O. December 21, 1933, in accordance with the provi-
sions of T'itle I of the National Industrial Recovery Act. Every
person who filed a request for an appearance was freely heard in
public and all statutory and regulatory requirements were complied
The National ~Association of Air Filter Manufacturers, being truly
representative of this Subdivision of the Mllachinery and Allied Pro~d-
acts Industry, has elected to avail itself of the option of sub~it~ting
a Supplemental Code of Fair Ctomlpetition, as provided in ArticleI
of the Basic Code for the Mcachinery and Allied- Products I~ndustry
approved by you on the sevent~eenth d~ay of PMarch 1934.
This Subdivision represents a part of the capital goods industry,
manufacturing and selling equipment used solely for the cleaning of
air and other gases, and parts thereof except for use! in aer~oplanes,
automobiles, trucks or tractors.
In 1929 this Subdivision employed approximately 400 persons,
including office worke~rs. ~Employmzent of factory workers, estimated
to be 338 in 19129, declined. to approximately 164 in Nov~emlber, 1933,
or 51.5 per cent.
Ac~nnual sales of the Subdivision, based on estimates furnished by
the National Association of Arir Filter Manufacturers, declined fromt
$2,000,000 in 1929 to $800,000 in 1933, or 60 per cent.
AI~pproximnately 69 percent of the workers were workiing more than
40 hours per week as of June 15, 1933. The average work-wreek
declined from 50 hours in 1929 to 38.6 hours in No~cvember 1933.
Estimated average man-hours per week declined from 16,900 in
1929 to 6,330 in Novembe~r 1933, or 62.5 per cent. Unt il there is a
further increase in man-hour requirements, the adoption of the 40-
hour week will no~t cause~ an increase in. employment in this Sub-
Based on graphic inlterpolation of sumnmarizedl National Recoverry
~Administration questionnaire returns as of June 15, 1933, approxi-
mately 18.8 per cent of the workers wsere receiving less than 40 cents
per hour; 18.6 per cent were receiving less than 38 cents per hour;
8.5 percent were receiving less than 36 cents per hour; andi 3.1 per
REPORT TO THE PRESIDENT
cent wvere receiving less than 32 cents per hour. T'he adoption of
the minimum wrage rates provided by the Code will probably cause a
Emall increaSe in the total payrolls o~f this Subdivision.
RESUMEb OF THE SUPPEMNTL CODEJ .1
Article I states th~e purpose of the Supplemenrtal Code.
Article II accurately defines specific terms employed in this Sup-
Article III. The labor provisions of th~e B.asic Code for the
Machinery and Ailliedi Products Industry, as approved March 17,
1934, are incorporated by reference as the labor provisions of this
Article IV' adopts the relevant portions of Article II "D~efini-
tions ", Article V'I "A~-dministration and ALrticle VIII, M~odifica-
tions and Termination "' of the Basic Code for the Machinery and
Allied Products Industry, as approved March 17, 1934l.
Article V establishes a code authority consisting of three mem-
bers. The Adrminist~ration, in his discretion, may appoint one addi-
tional member, without vote and without expense to the Subdivision.
Together w~ith the applicable provisions of the Basic Code, mech-
anism is provided for the administration of this Supplementtal Code.
Article V'I provides for an accounting system and methods of cost
finding and /or estimating.
Article VII provides that during an emrergency, th~e lowest reason-
able cost of products of the Subdivision may~ be determined, and that
during said emergency, it shall be an unfair trade practice to sell at
less than the determined rePasonable cost.
Article VIII provides for the filing ofE price lists, discount sheets
and terms of sale and payment and for filing of revisions thereto.
Article IX. sets forth th~e unfair trade practices which have been
especially designed to offset unfair competition in this Subdivision.
Article X defines export territory and provides that filed prices,
discounts andi sterns of sale and payment are not applicable to export
Article XiI contains the mandatory provisions contained in Section
10 (b) of the Act, and also provides for the submission of proposed
amendments to the Supplemen~tal Code.
Article XII provides for the withdrawal of this Subdivision. from
the jurisdiction of the Basic Code Authosity and for the continued
functioning of this Subdivision as an individual industry under its
Article X1II provides that there shall be no inequitable restric-
tions and provides against monopolies.
Article XYIV gives t~he effective date of this Supplemental Code.
The Assistannt Deputy Administrator in his final report to me on
said Supplemlental Code having found as herein set forth and onr
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the pol-
icie~s and purposes of Title I of the National Industrial Recovery
AcLt, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof,
and will provide for thre general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and :maintainilng united action of labor
and management under adequate~ governmental sanctions andl super-
vision, by eliminating unfair competitive practices, by promuotinga the
fullest possible utilization of the present productive capacity of- in-
dustries, byT avoiding undue restriction of production (except as may
be temporarily required), by increasing t~he consumption of indus-
trial and agricurlltu~ral prrodu~cts through melreasmng purchnasinrg power,
by reducing and relievmng unemployment, by improving standards
of labor, and by otherwise rehabilitating industry.
(b) Said Subdivision employs not more than 50,000 employees and
is noot classified by- me as a maJor industry.
(c) The Supplemental Code as approved complies in all respects
with thie pertinent provisions of saidr Title of said AcL~t, including~"o
without limitation Subsection (a) of Section 3, Subsection a)o
Section 7, and Subsection (b) ofSectioni 10 thereof ; and that the
atpplicanrt association is an. industrial association, truly representa-
tive of the aforesaid Subdivision; and th~at; said association unposes
no inequitable restrictions on admission to membership therein.
(d) Th]e Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplem~ental Code is not designed to andl will not elimi-
nate or oppress small enterprises and wo~~i ll ot operate to discrimi-
nate 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
For these reasons, therefore, I have approved this Supplemental
Code on the condition, that certain provisions relating to price publi-
cation are stayed, as stated in the Order.
HUGH S. JOHNSON,
JULY 21, 1934.
SUPPLEMENTARY CODE OFLi FAIR COMPETITION FOR
THE AIR FI[LTCER INDUSTRY
A DIVISION O1F TH-E MACHINERY AND) ALL IERDRDUCTS3 INDUSTRY
T~o effectuate the policy of Title I of the National Industrial
Recovery Act, the follwing provisions are established as a Supple-
mental Code for the Air Filter Subdivision of the Machinery and
Allied Products Industry, and together with the Code of Faiwr Com-
petition of Machinery and Allied Products Indurstry, shall be the
standard of fair competition for this Subdivision and shall be bind-
ing on every employer there~in.
"Applicant "' means the National AQssociation of Air Filter Mannu-
facturer~s, a trade organization, all members of which are engaged in
the manufacture for sale of the products of the Air Filter Subdi-
vision of Machinery and Allied Products Industry.
Indu~stry "" means the Machinery and Allied Products Indlustry,
as defined in its Code of Fair Competition as approved by the Pres'i
dent, and as such definition may from time to time be amended.
Subdivision means the Air Filter Subdivision of the Machinery
and Allied Products Industry as defined and set forth in paragraph
(1), Art~icle II, of the Code of Fair Comnpetition of the Machinery
and Allied Products Indu~stry as follows:
c"Air Filter Subdivision means the manufacture for sale of -equip-
ment used solely for the cleaning of a.ir and other gase~s, and parts
thereof, except for use in aer~oplanes, automobiles, trucks or tractors
and includes all those engaged in such manufacture for sale."
"L Code means the Code of Fair Competition of the M~achinery
and Allied Products Industryr as approved by the President, March
17211934, and as from time to time amended.
'Person mean a, natural person, a partnership, a cor~porlt~ion,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.,
"L Employer "means any person engaged in this Subdivision either
on his own behalf or as an employer of labor.
"' Employee means any one who is employed in the' Subdivision
by any such employer.
The Act means Title I of the National Industrial Recovery Act.
"L The President means the President of the U~nited States.
The Administrator means the Admlinist~rator for Industrial
"L Basic Code Authority means the Code Authority for the Ms-ac
chinery and Allied Products Industry as constituted by the Code.
Code Authority means the Code Authority constituted for this
Subdivision as' Go p providedd by- the Code and by this Supplemental Code.
Grup odeAuthority means the Code Authority; for any
group or product classification within this Subdivisiozn.
"r Publish means to make available to the public.
~Annexa III--Eurn~oYMENT PROVISIONS
The following Articles of the Code, viz:i Article III, Working
Hours "; Article IV, Wlages "; and ALrtcle VJ, General Labor
Provisionls are hereby made a part of this Supplemental Code, with
the same effect as if they were written into this Supplemental Code.
ARTICUE IV-ADLIOPTION Or OTHra PRov6IeoNB or CODE
The following Articles of the Code, viz: Article II[,' "Definitions "
and Article VI, "Administration "', to the extent that they shall be
applicable to this Supplementatl Code as such or as it may hereafter
be administered as an autonomous Code; and Article VIII, Afodi-
fications and TIermination are hereby adopted and made a part
of this Supplemental Code, with thle same effect as if they were
written into this Supplemental Code.
(a) A~ Code ~Authority for this Subdivision is herebyv constituted
to administer, and supervise, and to facilitate the enforcement of
the Code and of this Supplemental Code in the manner and to the
extent provided in the Code and in this Supplemnental Code.
(b) During a period not to exceed sixty (60) days following the
effective date and pending the election of the permanent Code Au-
Ithority, the executive committee of the applicant shall constitute
a temporary Code Authority. The Admimistrator in his discretion
mcay appoint one additional member (without vo-te and without
exzpe~nse to the Subdivision).
(c) The Applicant shall, by written notice sent at least ten (10)
days in advance of the meeting by registered maail to all employers
whose names the Applicant has asce~rtained after reasonably diligent
search, call a meeting of employers to be held within sixty (60) days
after the effective date of this Supplemental Code for the purpose
of adopting procedural rules and regulations for the action, orgami-
zation and operation of the permanent Code Auxthorit and electing
a permanent Code Authority which shall consist of three members.
TIhe! Administrator, in his discretion, may appoint one additional
member withoutt vote and without expense~ to the Subdivision).
The~ permanbunt Code Authority so elected and appointed shall suc-
ceed the temporary Code Authority.
Any vacancy on thie Code Authority due to death, resignation, or
because a member thereof has ceased to be connected with the Sub-
division, shall be filed at a meeting of emp~loyers called by the Code
Authority on at least ten days' notice by registeredl mail sent to all
employers in this Subdivision, and by a votet similar to the vote by
which the retired member was originally selected.
In order that the Code Authority shall at all times be truly~ repre--
sentative of the Subdivision and in other respects comply with the
provisions of the Act, the Administrator may prescribe such hiear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other re-
spets ompy wth he provisions of the Act, may require an
apprc ompriat moifction off thie Code Authority.
Each trade or industrial association directly or indirectly partci-
pating in the selection or activities of the Codie Authorityv shall(1
impose no inequitable restrictions on membership, and (2) submit to
the Administrator true copies .of its articles of association, By-Laws,
regulations, and any amendments when made thereto, together wcith
such other information as to membership, organization and activities
as the Administrator may deem necessary to effectuate the purposes
of the Alct.
(d) 1. It being found necessary, in order to support the adminis-
tration of this Supplemental Code an to ;mainrtain the standards of
fair competition established hereunder and to effectuate the policy
of the Act, the Code Authority is authorized:
(aa) To incur such reasonable obligations as are necessary a~nd
proper for the foregoing purposes, a~nd to meet such obligattions out;
of funds which may be raised as hereinafter provided and whicli
shall be held in trust for the. purposes of the Supplemaental Code.
(bb) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he maay deem necessary
(1) an itemized budget of Its estimated expenses fior the foregoing
t uprpu rposes, and (2)' an equitable basis upon which the funds necessa ry
to upprt uchbudet hal beconriuted b~y employers ofth
(cc) After such budget and basis of contribution haew been ap-
proved by the Administrator, to determine and obtain equitable- con-
tribution as above set forth by all employers of the Subdivisionl and
to that end, if necessary, to institute legal proceedings therefore in its
2. Each employer of the Subdivision shall pay his or its equitable
contribution to the expenses of the maintenance of the~ Code Autor-
ity, determined aes hereinabov~e provided, and subject to rules and
regulations pertaining thereto issued by the Adnunistrator. Ol
employers of the Subdivision com plin g with the Supplemena
Code and contributing to the expenses of its administration as here-
inabove provided, unless duly exempted from making such contribu-
tion, shall be entitled to partici pate in the selection of members of
the Code Authority or to receive the benefits of any of it~s voluntary
activities or to make use of any emblem or insigmia of the National
3. The Code Authority shaUl neither incur nor pay any obliga-
tion mn excess of the amount thereof as estimated in its approved bud-
get, except upon approval of the Administrator; 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.
(e) APction by employers in any Subdivision meeting for the elec-
tion of Code Authority shall be by vote of the employers entitled
to vote as provided in Sect~ion. (d) of this Article V, and who are
present in person or by proxny, each such employer to have one vote
only. ALction by employers in any Subdivision meeting for the
adoption of procedural rules, revisions, or additions to the Supple-
mnental Code or the transaction of other business of the Subdivision
under this Supplemental Code, shall be by vote of the employers in.
the Subdivision who are entitled to vote threat as provided in Sec-
tion (d), Article V of this Supplemental Code and are present in
person or by proxy duly executed and filed with Cods Authority;
cast and computed in, the manner provided in Section (d) Ar~ticle
VI of the Code. All questions as to the? number of votes which each
employer shall be entitled to cast at any meeting of employes,
other than the meeting held to vote for the election of the permanent
Code AiCuthority, shall be determined byT Code ~Authority, in accord-
ance with Section1 (d) Article VT~I of the Code.
(f) Employers in this Subdivision having a common interest and
common problems may be grouped by Code Authority for adminis-
trati~ve purposes. There may be a GIroup Code Atuthority approved
or appointed by Code Authnority for each such group.
(g) If formal complaint is made to Code ALuthority that provi-
sions of this Supplemental Code have been violated by~ any em-
ployer, Code Auth~ority or the proper G~roup Code Authority m~ay,
to the extent permitted by the Act, cause such investigation or audit
to be made as may be deemed necessary. If such investigation is
made by Group Code Authority it shall report the result of such.
investigation or audit to Code Authority for action.
(h) The Code Aluthority may appoint a Trade Practice Comm~it-
tee which shall meet wclith the Trade Practice Committees appointed
under such other Codes as m~ay be related to the Subdivision for the
purpose of formulating fair trade practices to govern the relation-
ships between production and distribution employers under this
Supplemental Code and under such others to the extent that such
fair trade practices may be proposed to the Administrator as amaend-
ments to this Supplemental Code and such other codes.
AnIcLE VI--AccouxNsIN ANn CosTIxo
The Code A-uthority shall cause to be formulated an accounting
system and methods of cost finding alnd/or estimating capable of use
by all employers of the Subdiv~ision. After such system and methods
have been formulated, full details concerning them shall be made
available to all employers. Thereafter, all employers shall deter-
maine and/or estimate costs in accordance with the principles of such
ARITICL;E VII--SELLING BELOW REASONABLE COST
When the Code ~Authority determines that an emergency exists in
this Subdivision and that th~e cause thereof is destructive, price-cut-
.igsuch as to render ineffective or seriously endanger the mainte-
nance of the provisions of this Supplemental ~Code, the Code Author-
ity may cause to be determined the lowest reasonable cost of the
products of this Subdivision, such determination to be subject to
such, notice and hearing as the Administrator may require. The
Adm~cinistrator mnay approve, disapprove, or modify the determina-
tion. Thereafter, during the period of the emergency, it shall be an
unfair trade practice for any employer of the Subdivision to sell or
offer to sell any products of the ~Subdivision for which the lowlest
reasonable cost has been determined, at such prices or upon such
terms or conditions of sale that. thze buyer will pay le~css therefore than
the lowest reasonable cost of such products.
When it appears that conditions hcavTe changed, the Code Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be revie~wed.
A5rrrnzre VZIII-ale Lst
(a) If and when Code Aluthority determines that in atny group of
the Subdivision irt has been the generally recognized practice to sell
a specified product on the basis of net price lists, or price lists with
discount sheets, and terms of sale and payment, each employer enr-
ggdin the manufacture of such products shall, withi n ten (10)
dsafter notice of such determination, file with Code Authority a
net price list, or a price list wtith discount sheet, as the case may be,
individually prepared by him, showing his current prices, or prices
and discounts, and terms of sale and payment for such specifed
product. and Code Authorityr shall imnmediatecly publish and send
copies thereof to all known employers who are cooperating under
t~hls Supplemental Code as dlescribedl in Article V', (d) and engaged
in the manufacture of such specified products.
Revised price lists and,'or discount sheets andt/or terms of sale
and payment may be filed from time t~o time ther~eafter with the Code
Authority by any such employer, to become operative upon the
date specified therein, but such revised price lists and~/or discount
sheets and,.or terms of sale and payFment shall be filed with the Code
Authority ten (10)) days in advance of the operative date. Copies
thereof, with notice of the operative date specified, shall be immnedi-
rately published and sent to all employers cooperating under this
Supplemental Code as described in Article V, (dj any of whom may
file, if he so desires, revisions of his price lists and/or discount sheets
and/or terms of sale and payment, which shall become effective upon
the date when the revised price list and~/or discount sheets and/or
terms of sale and payment first ~filed shall go into effect
(b) If and when the Code Authority shall determine that in any
group of the Subdivision not nowf selling its product on the basis o~f
price lists with or without discount sheets with terms of sale andf
payment, the distribution or marketing conditions in the group are
the same as, or sumilar to, the distribution or markle~tinrr conditions
in the group where th~e use of price, lists, withl or withblut discount
sheets and terms of sale and paymlent is well recognized, and that
a system of selling on net price lists or price lists and discount sheets
with terms of sale and payment for such specified product should be
put into effect in such group, then each employer in such crloup shall,
within twenty~ (20) days after notice of such 'determinatiTin, file with
Code Authority net price lists or price lists a.nd discount sheets,
with terms of sale and payment, who shall immediately publish and
send copies thereof to all known employers cooperating under this
Supplemental Code, and such price lists and,/or discount sheets
a See paragra~ph 2 of order approving this Code.
and/or 'erms of sale and payment may be thereafter revised in the
manner hereinatbove provided. Provided that Code Authority shall
make no determination to place anJ product of the Subaivision (not
now on a price list basis) on a pricei list basis, as provided in. this
Section unless affirmative consent to such determination is given by
a 662/3%0 vote of employers who are at that time cooperating under
this Supplemental Code as described in AC~rt~icle V (d), and are en-
gaged inl manufacturing such product. T1Che eligibility requirements,
method, and effect of such voting shall be the same as is providled in
S(c) Code ALuthority for the purpose of determining the lowest
treasonable cost shall to the extent permitted by the Act, have power,
on its own initiative, or on the complaint of any employer, to in-
vestigate anyl price or thle terms of sale and payment for any product
of any emnployrer; and, for the purpose of thle investigation thereof,
to require such employer to furnish such information concerning the
cost of manufacturing and selling such. product as Code Authority
shall deem. necessary or proper for such purpose, and as the Ac~ct mnay
Nlo employer shall sell directly or indirectly by any means wmha-tso-
ever, any product of the Subdivision covered by provisions of this
~Article V-III at a price or at discounts or on terms of sale a~nd pay-
ment, different from those provided in his own current net price
lists, or price lists and discount sheets, and terms of sale and pay-
ARTICLE IXI-U-INFAIR PRACTICES
SEach of the following acts and practices is deemed to be inimical
to the best interest of the Subdivisrion, and of the public, and each
is, therefore, hereby declared to be and to constitute an unfair
method of competition, and is prohibited, viz :
(1) The secret payment of any rebate, refund, commission, credit,
unearned discount, or excess allowance, whether in the form ofmoney
or otherwise, nor shall an employer of the Subdivision 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.
(2) The payment, or promise to pay, to any agent, fiduciary or
representative, of money or valuable thing, with or without the
knowledge of his principal, in connection withl any sale to his prin-
cipal. This provision shall not be construed to prevent the free and
general distribution of articles commonly used for advertising, ex-
cept so far as such articles are actually used for commercial bribery
as hereinabove defined.
(3) The publishing of advertising (whether printed, radio, dis-
play, or of any other nature) which is misleading or inaccurate in
any material particular, nor shall any employer in any way mis-
represent any goods (including but without limitation its use, trade-
nauemark, gradequality quantity, origin, size, substance, character,
natrefinshmaterial, content, or preparation) or credit terms,
values, policies, services, or the nature or form of the business
(4) The engaging in destructive price-cutting by any employer
of this Subdivision.
ARnac X--SlALr~ES PR ~EXPORT
The provisions of this Suppleen~tal Code concerning pricing; and
marketing shall not apply to direct export sales of any product or
to sales of any P product destined ultimately forc report. The term
" export shall meclude all shipments toalplcswhothee-
eral states of the United States and the District of Columia; pro-
vided, however, that no shipmetnt to any territory or possession of
the United States shall be considered an export when anly employer
is engaged in the Sjubdi~vision in such territory or possession.
ARrx~Cra XC BI---onacros
(a) As provided by Seton. 10 (b) of the Act, the Pr~esident may
fromt time to time catncel or modify any order, approval, license,
rule or regulation issued under Title I of thne Act.
(b) Any amendments, additions, revisions, or supplemlents of this
Supplemental Code, propsed by Code Authority, and authorized
by the affirmative votei of 662/3 fo of the employers shall be in full
force and effect uponl approval by thze ~President. The eligibility
requirements, methods and effect of such voting shall be the same
as provided by Article V hereof.
Upon thirty days' notice to the Basic Code Authority and to the
~Admi nist~ra tor, this Subdivision may, upon the concurring affirmative
v~ote of employers within the said Subdivision entitled to cast two-
thirds or more of all the votes that mlight be cast by- all employers
within the Subdivision entitled to vote thereon, withdraw from the
jurisdiction of the Basic Code Authority. TIhe eligibility of voters
and the method and effect of such voting shall be in accordance with
the provisions of Article V hereof. After and in the event such w~ith-
dra.wal is accomplished, this Supplemental Code, together -with the?
provisions of the Code, shall become and be th~e sole code governing
this Subdivision, and the Code Authorityt shall, for this Subjdivision.
become and be t~he sole Code Authorit\I and shall perform all thle
functions with respect thereto.
Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemnental Code presented by it is not
designed to promote monopoly, and shall not be so construed or
applied as to oppress or eliminate small enterprises or discriminate
against them, and is designed to effectuate tlh~e policy of the Act.
ARTICLE XTIVT-EFFECm'ED AL)TE
This Supplemental Code shall become effective and binding on
all persons engaged in the Subdivision on the elevent day after its
Approved Code No. 3471-Supplement No. 32.
Registry No. 1304--05.
UNIVERSITY OF FLORIDA
I1IIllli~lllllill~llI UIl111 IIIl111111111
3 1262 08584 1939