Code of fair competition for the band instrument manufacturing industry as approved on February 10, 1934

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Title:
Code of fair competition for the band instrument manufacturing industry as approved on February 10, 1934
Portion of title:
Band instrument manufacturing industry
Physical Description:
p. 369-379 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Musical instrument makers -- United States   ( lcsh )
Musical instrument makers -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1640-05."
General Note:
"Approved Code No. 273."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004921465
oclc - 639056323
System ID:
AA00006489:00001

Full Text

UNIV. OFC FL Lia.




U.S. DEPOSITrORY
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934


For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents


pr;s

.d.;,


oved Code No. 278


Registry No. 1640--05


NATIONAlRECOVERY AbMWINISTRATION


CODE, y~lFAIR COMPETITION



BAND INSTRUMENT

MANUFACTURING INDUSTRY


AS APPROVED ON FEBRUARY 10, 1934























This publication is for sale by the superintendent of Documents, Government
Printing Ofilee, Washington, D.O., and by district of[iees of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF 'THE DEPARTENT "OF CO~MMECE

Atlanta, Ga.: 5041 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Buite 1700, 201 North WVells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commercial Building.
Detroit, M~ich.: 801 First National Banki Building.
H~ouston, Tex.: Chamber of Cosh~merce Building.
Indianapolis, Indl.: Chamber of Commerce Building.
Jackisonvine, F'la.: Chamber of Commerce Buildling.
Kansas City', Mo.: 1028 Balthnore Avenue.
Los Angeles, Calif.: 1163 Bouth Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 220 Federal Ballding.
Minneapolis, Mine.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York-, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 Eanst Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 Newv Post Office Building.
St. Louis, Mo.: 506 Olive Street.
Ban Francisco, Calif.: 310 Customhouse.
Seattle, W~ash.: 800 Federal Office Building.













Approved Code No. 273


CODE OF FAIR COMPETITION

FOR TH~E

BAND INSTRUMENT MANUFAhCT URIN G
INDUSTRY

As Approved on February 10, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE BAND
INSTRUMENT 1IANUFA4CTURING INDUSTRY
An application having been duly made pursuant to and! in full comi-
pliance with the.provisions of Title I of the Nationlal Industrial Re-
covery Act, approved June 16, 1933, for approval of a Code of Fair
Competition for the Band Instrument MCanufacturing Industry, andt
hearings having been duly heldl thereon and the annexedl report on
said C'ode, containing findisigs with respect ther~eto, having been
made a~nd directed to the PresidZent:
NOW7, THEREFORE, on behalf of thle Presidenlt of t~he United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in mne by Executive Orders of the
President, including Executive Order No. 6543-A, dated Decemiber
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find t-ha~t said Code complies in all respects
with t~he pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGHI S. JOHNSON,
Admn~iistrator for Indu1str~ial Recovery.
Approval recommended :
GEO. L. BERIRY,
Division Admi~nistr'ator.
WASHINGTON, D.C.,
February 10, 19~34.
30354"---376--5---34 (369)












REPORT TO THE PRESIDENT


The PRESIDENT,
The W~h~ite House.
SjIR: A Public Hear~ing on the Code of Fair Competition for the
Band Instrument Mlanufacturing Industry, sulbmittedd by the Na-
tional Band Instrument Man~ufacturers Association, located ait 45
West. 45th Street, New Y'ork, N.Y., was conducted in Washington
on t~he 26th of October 1933, in accordance with the provisions of
the National Industrial Recovery Act. The Association claims to
represent. 87 percent of the Industry.
Th~e mnaximlum hours permitted under this Code are eight (8)
hours per day or forty (40') hours per week, except that for five (5)
weeks of any six (6) months period, eight (8) hours of overtime per
week mnay be wrorkted, provided that a~ll overtime is reported to the
Code Authoritiy. The mlaximlum hours for clerical or office employees
is forty (40) hous in any one week, except that during inventory
periods, any member of the industry may be permitted to work such
employees, as may be used on inventory work, not to exceed two (2)
in number or twenty percent (2046) of the total number of emn-
ployees covered under this paragraph, whichever is the higher, a
mtaximumn of forty-eight (48) hours per week for a period not to
exceed three (3) weeks in any six (6) months period.
The minimlum wage for factory employees, except apprentices, is
forty cents (400) per hour. The mnummum wage for apprnt~ies is
not less than thirty-two cents. (32/) per hour with thle provision that
the number of apprentices so paid shall not in any week be more than
one (1) in number or fiv'e percent (5C%) of the total number of fac-
tory employees actually engaged in productions during t'hat wveek,
whiche\er is the higher. All other employees shall be paid not less
than thirty-five cents (35t) per hour.
The Band Instrumnent Manufacturing Industry, based on th~e
Census of Mianufactures, 1929, employed 2,089 wage earners, and
1,671 during 1931. On the basis of the 40-hour week, 167 wage
earners would benefit through reemnployment. bringing the total
number of wage earners to 1,838.
The value of commlodities produced by the Band Instrument Mian-
uifacturing Indus~try aggregated, during 1929, $11,126,815. During
1931, product valule declined 54.2 percent under the 1929 total, or to
$f5,089,566. In other words, where the value per establishment
sver~agedl $2532,882~ in 1929, it declined to an average of $127,239 in
1931.
FINDINGS

The Deputy: Admlinistrator in his final report to me on said Clode
hanving foundl as hierein set forth and on the basis of all the proceed-
ings in this mnatter;
(870)






371l


I find that:
(a) Said Code is well designed to pr~omote thle policies and pur-
poses of Tit~le I of the National Industriail Recovery A~ct, including
removal of obstr~uctions to the free flow\ of inlterstate and foreignl
commerce which tendl to dimiinish the amnounit thereof and w nill pro-
vide for the general welfare by promotinlg the organization of indurs-
t~ry for the purpose of cooperative action among the tradet groups,
by inducing and maintaining united action of labor andi management
under adequate governmental sanctions andl supervision, by elimlilnat-
ing unfair competitive practices, by promiotingq the fullest, possible
utilization of the present produrctivIe capacity of indlustries, b~y av-oidl-
mng undue restriction of production (except as may be temporarily
required, by increasing the consumption of industrial and agricul-
tura~l prod ucts through increasing p~urchasing pow-er, by reducing
and relieving unemnploymlent, by imnproving standa~rd~s of labor. and
by otherwise rehabilitatilgr industry.
(b) Saidi Industry normally emnploys not mlore thian 50,000O emi-
ployvees; andl is not classified by me as a mlajor industry.
(c) The Code as ap~provedl complies in all respects w~ith the per-
tinent. provisions of saidl Title of sail Alct, includlingr without limiita-
tion Subsection (a) of Section :3, Sjubsection (a) of S~ection 7, anid
Subsection (b) of Section 10 thereof; andi that thle applicant associa-
tion is an industrial association truly representative of the aforesaid
Industryc; andl that said Association imp~oss nio icequitable restr~ic-
tions on admission to miembership th~erein.
(d) The Code is not. designed to and will not p~ermiit monopolies
or monopolistic practices.
(e) The Code is not designed to anld will n~ot elimlinlate Or' opprless
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process hiave niot
been deprived of the right to be heard prior to approval of said Code.
This Industry has cooperated in a most satisfactory manner withl
the Aldministra~tor in the preparation of this Codle. From evidenlce
adduced during this hearing and fr~om recommendations and reports
of the various Advisory Boards it is believed that this Code as
now proposed andi revised represents an effective, p~ractical, equitable
solution for this Industry and for these reasons this Code has been
approved.
Respect fulIly,
HUGH rS. JOHNSON,
AZdmn~il istrat or.
FEBRUARY 10, 1934.












OO3DE OF` AI~R COMSPETSTIION F1OR TH~E BANJD ~INSTRU-
IMENT MANUFACTURING~ IN~DUSTRYP

AnatMriciaJ I-PUmrPOSEs

'To effectuate the policies -of Title I of the Nctio~nal Indlustrial
Recovery Act, this Code is established as a C~ode of Fair Compe~ti-
tion for the Band Instrument IVanufactu~ri~ng Induty and shall be
~the standard of fair competition for this ind-ustryad binding upon
every mJember t~hereof.
ARaTICIA II--DEFINITIONSB

-1 Thre term "~ Band Instrument Manufatcturing Industry as ulsed
herein is defined to mean the fabricating, and/'or assembh~ag, repair-
ing, r~econstructing, and remnodeling, of those muisica instruments
conmmonl used by hands such as wind! pereussson, .and similar in-
strumnts, as weHi as of parts and accessories thereof, and such re-
~la~ted bran~ches or subdivisions thereof as mayr from time to time bhe
included under the provisions of this ~Code by the President afer
Euch notice and hearing as he may prescribe. It shall not be deemed
to include pianos, organs, stringed instruments, or instrumentt caises,
nor shall it include repairmen who do r~epairing ~oay and who do
not fabricate or assemb3le new or used instruments.
2. Thre term member of the Industry ", as -used herein, shall mneanl
any employer engaged in the Band Instruatmen MIanu~facturinIg In-
dustry, as defined-in Section 1 of this Arti-cle.
3. The term "' employee .as used herein includes any and all per-
sons engaged in the industry, however ;compensated except a ruemnber
of the industryv.
41. The term "L employer as used herein includes anyone by whom
such employee is compensated or employed.
5. The termn apprentice "' as used herein means any .employee
without previous experience or employment in the Industry, who is
engaged in learning any of the skilled or semiskilled operations
incidental to the industry.
6. The term "~ jobber "' shall mean a distributor of the rdcso
the industry who regularly sells such products to rtetailesain
tains an established place of business, where at all times he carries
a stock of such products; publishes a wholesale catalogue and main-
tain at least one traveling salesman.
7. The term retailer shall mean a distributor of the products
of the industry who regularly purchases for his own account such
products and sells them for use and not for resale, an'd who main-
tains an established place of business where at all times he carries
a stock of such products.
8. The term "' agent shall mean anyone who sells the products of
the industry on commission for the account of manufacturer.
(372)






373


9. The terms "LAct ", and "Administrator as used hierein mean
respectively Title I of the National Industrial Recovery Act, and
the Administrator for Industrial Recoivery.

ARTICLE 111- TOURS

1. No factory employee shall be permiitted to work in excess off
eight (8) hours per day or forty (40) hours per week except that
for five (5) weeks of any six (6) mionthis' period, eight (8) hours
of overtime per week may be worked, provided that all overtime is
reported to the Code Authority.
2. No person emiployedl in clerical or offie wo~rk, shall be per-
miitted' to workr in excess of forty (40) hours in any one week, except
that dur~ing. inventory periods, any member of the industry may be
permitted to work such employees, as miay be usedl on inventory
work, not to exceed twoa in number or twenty percent (20%;) o~f
the total number of employees covered under thiis sectionl, whichi-
ever is the higher, a mnaximum of forty-eight (48) hiour~s per week
for a period not to exceed three (3) w~eeksu in any six (6) months'
period.
3. The foregoing stipulations of sections 1 and '2 of thiis article
shall not apply however, to employees in manager~ial, superv\isory,
annd executive capacities, technicians on research, andi engineering
staffs who receive not less than thirty-five ($35.00) dollars per week,
nior shall said stipulations apply to commlercial traveling salesmen.
4. Watchlmen shall be employed in pairs and shall nlot be per-
mitted to work more than thirty-six (36) and forty-eight (48) hours
in alternate weeks or an average of mnore than for~ty-twro (412) hours
per week.
5. No firemen shall be permitted to wFork inl excess of a tolerance of
ten (10%~) percent on the hours stipulatedi in section 1 of this article.
6. Technicians on research and engineering staffs receiving less
than thirty-five ($35.00) dollars per week, upon specific request to
aril ythe Code Auhoiyma be excepted from the provisions of this
artile b theCodeAutorityr with the approval of the Adminis-
trcator.
7. No employee shall be permitted to work for a total number of
hours in excess of the number of hours prescribed hierein, whether
he be employed by one or more employers.
ARTICLE IV--1VAGES

1. No factory worker shall be paid less than fort.y (404) cents
per hour; provided, howev-er, that the minimum wage that shlall be
paid to any apprentice shall be not less than thir~ty-two (324) cents
per hour; and provided further, that the number of apprentices so
paid shall not in any week be more than one (1) in number or
five (5%)o percent of the total number of factory employees actually
engaged in production operations during that week, whichever is
the higher. The period of learning ~for each operation shall be
fixed by the Code Authority subject to the approval of the Admin-
istrator, but in no case shall it exceed six (6) months, and no person
shall serve more than one (1) apprenticeship in the industry.






374


2. All other employees, except as provided in -Section 8 of this
article. shall be paid not less than thirty-five (35d) cents per hour.
3. A person whose earning capacity is limited because of age or
physical or mlentall handicap miay be employed on light work at a
wage below the minimum established by this Code if the employer
obtatins from the State Aut~hority designated by the United States
Department of Lab~or a certifcate authorizing his enipleyment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him. Such authority shall be guided by the
instructions of the UnJited States Department of Labor in issuing
certificates to such persons.
4. This article establishes a minimum rate of pay which shall
apply, irrespective of whether an employee is actually compensated
on a time rate, piecework performance, or other basis.
5. It is t~he policy of the members of this industry to refrain from
reducing compensation for employment which compensation was,
prior to June 16, 1933, in excess of the minimum wage herein set,
forth, notwithstanding that the hours of work in such employment
mnay be reduced; and all members of this industry shall end~eavor
to increase the pay of all employees in excess of the minimum wage,
as herein set forth, byv an equitable adjustment of all pay schedules.
6. Female employees performing substantially the same work as
male employees shadl receive the same rates of compensation as male
employees.
ARTICLE V'-GENrERAL LB~OR PRovLIsons
CHLLD LABOR

SECTION i. NO person unlder- sixteeni (16) years of age shall be
employed in the industry. NoI nprson under eighteenI (18) years
of age shall be employedj at operations or occupations which are
hazardous in nature or dangerous to health. The Code Authority
shall submlit to the Admlinist~rator within sixty (60) days a list o~f
such operations or occupations. In any State an employer shall be
deemed to have complied with this provision as to age if he shall
have on file a certificate or permit duly signed by the Authiority in
such State emlpowered to issue employment or age certificates or
p~ermnits showing that t~he employee is of the required a~ge.
PROVISIONS FROM THE ACT

SEC. 2. In compliance with Section 7 (a) of the Act it is provided:
(a) That, employees shall have the right to organize and-bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted' activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employmentt shall be
required as a condition of employment to join any com any union
or to refrain from jommig, orgamizmg, or assisting a la or organi-
zation of his own choosing, and






375


(0) Thatt employers shall comply with~ the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
RECLASSIFICATION OF EMIPLOYEES

SEc. 3. No employer shall reclassify employees or duties of occu-
pations performed or enga.ge in any other subterfuge for t~he purpose
of defeating the purposes or provisions of the Act or of this Code.

STANPUDARDS FOR SAFETY AND HEALTH

SEC. 4. Every employer shall make reasonable provision for the
safet-y and health of his employees at the place and during the hours
of their employment.
STATE LAW'S

SEC. 5. No provision in thlis Code shall supersede any State or
Federal law which imposes on employers mnore stringent require-
mlents as to age of employees, wages, hours of work, or as to safety,
health, sanitary, or general working conditions, than are imposed
by this Code.
EMPLOYER INi TWO OR MORE INDUSTRIES

SEC. 6. If any' employer of labor in this industry is also an emp-
ployerr of labor in any other industry, the provisions of this Code
shall apply to and affect only that part of his business which is
included in this industry.
POSTING

SEc. 7. All employers shall post complete copies of this Code
in conspicuous places accessible to employees.

ARTICLE VI- ADMINISTRATION

SEcHOBN 1. A Code Authority is hereby established to cooperate
with the Administrator in the administration of this Code a~nd shall
consist of five (5) ~representatives of thle industry chosen b3y a fair
method of selection approved by the Administrator. Thle Achinin-
istratorr in his discretion may appoint not more than three (3)
additional members without vote, to serve for such period of time
a'nd to represent the Administr~at~or or such group or groups as he
mays designatte .
Siac. 2. Vacancies in the personnel of the Code Authority selected
by the industry shall be filled through~ appointment by the Admin-
istrator upon nomination of the Code Authority.
SEC. 3. Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority,
shall impose no inequitable restrictions on mlembership and shall
submit to the Administrator true copies of its articles of association,
by-laws, regulations, and any amendmnentsi When made thereto, to-
gether with such other information as to membership, organization,






376S

and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
SEC. 4. In Orler that the Code Authority Shall ~at all times be truly
representative of the industry and inl other respects comply with the
provisions of the Act, the Administrator may prescribe such hearings
as he may deeml proper; and if he shall find that the Code Authority
is not truly representative or does not in other respects comply wit~h
the provisions of the Act, hie mnay take such action as he mlay deem
necessary under the circumstances.
SEC. 5. Any member of the industry shall be entitled to part icipa~te
in and share the benefis of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying wit~h~the requirements of this Code and sustaining a
reasonable share of t~he expenses of it~s administration. Such reason-
able share of the expenses of the administration shall be determined
by the Code Authority subject to disapproval by the Administrator
on l~ ther- basi Irllof voum ofbusinesse andl/or suchr mother factors as mray
be deemed equitable.
SEc. 6. Nothing contained in this Code shall constitute the mem-
hers of the Code Authorityv partners for any purpose. Nor shall any
melmber of the Code Authority be liable in any manner to anyone for
any act. of any other member, officer, agent, or employee of the C~ode
Authority. Nor shall any member of the Code Authority, exercising
reasonable diligence in the conduct of his duties hereunder, be liable
to anyone for any action or omiission to act under this Code, except
for his own willful mnisfeasance or nonfeasance.
SEc. 7. The Code Authority shall have the following duties and
powers in addition to those elsewhere provided in this Code and to
the extent permiitted by the Act, subject to- the right of the ~Admin-
istrator to disapprove of any action taken by the Code Authority.
(a) To adopt b~y-laws and rules and regulations for its procedure
andl for the administration and enforcement of the Code, in accord-
ance with the powers herein granted, and to submit samne to the
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the Act.
(b) To obtain from members of the industry such information
and reports as are required for the administration of the Code' and!
to provide for .submlission by members of such information and
reports as the Administrator may deemu necessary for the purposes
recited in Section 3 (a) of the Act, which information and reports
shall be submitted by members to such administrative and/or gov-
er~nment agencies as the Administrator may designate; provided,
that nothing in this Code shall relieve any member of the industry
of anly existing obligaations to furnish reports to any government
agency. No individual reports shall be disclosed to any other mem-
ber of the industry or any other party except to such governmental
agencies as may be directed by the Administrator.
(c) To designate the National Association of Band Instrument
Manufacturers or any other trade association or agency as it deems
proper for the carrying out of any of its provisions provided for
herein, provided that nothing herein contained shall relieve. the







377


Code Authority of its duties or responsibilities under this Code and
that such trade associations and agencies shall at all1 times be subject
to and comply with the provisions hereof.
(d) To cooperate with the Administrator in r~egulating the use
of any N.R.A. insignia solely by those members of the industry who
have assented to, and are complying with this Code.
(e) To secure from members of the industry who assent to this
Code andi participate in the activities of the Code Authority, an
equitable and proportionate payment, of the reasonable expenses of
maintaining the Code Authority and its activities.
(f) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.
SEc. 8. If the Administrator shall determine th~at any action of a
Code Authiority or any agency thereof may be unfair or unljustt or
contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such Code
Authority or agency pending final action whichi shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days' notice to him of intention to pr~oceedl
with such action in its original or modified foirm.
ARTICLE VII--TRrADE Pxcr-rIcES

The following practices constitute unfair mlethlods of competition
for members of the Industry and are prohibited:
SECYTION 1. Inaccurate Labelling.
No member of t~he industry shall brand or mlarkk or pack any
goods in any manner which is intended to or d'oes deceive or m-fis-
lead purchas-ers with respect to the brannd, grade, quality-, quantity,
origin, size, substance, character? nature, finish, material, content,
or preparation of such goods.
SEC. 2. Inaccurate Atdvertising.
No member of thie industry shall publish advertising whetherr
printed, radio, display, or of any other naturg), which is misleadingr
or inaccurate inl anly material particular, nor shall any miember in
any way misrepresent any goods (including bunt without limiitation
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 busi-
ness conducted.
SEc. 3. Bribing Employees.
No member of the industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose o~f influ~-
ernemg or rewarding the action of any employee, agent, or represen-
tative of another in relation to the business of the employer of such
employee, the principal of such agent or the recpre~sented party,
without the know~ledgae of such employer, principal, or p~ar'ty. C]oml-
mlercial bribery provisions shall not he const~ruedl to prohibit. frtee
and general distribution of articles commonly usedt for adv\ertising






378

except so for as such articles are actually used for commercial
bribery as her~einabove dlefinedl.
SEC. 4. Interference with Another's Contracts.
No member of the industry shall attempt to induce the breach
of an existing contract. between a competitor and his customer or
source of supply; nor shall any such member interfere with or
obstruct the performance of such contractual duties or services.
SEC. 5. Secret Rebates.
No member of the industry shall secretly offer or make any pay-
ment or allowance of rebates, refunds, conunissions, credits, or
unearned disscount, whether in the form of money or otherwise,
nor shall any member secretly extend to certain purch~asrers special
services or pr~ivileges not extended to all purchasers on like terms
and conditions.
SEC. 6. Giving of Pr~izes, Premniumns, or Gifts.
No members of the industry shall give or offer to give prizes, pre-
miumsu, or gifts in connection with the sale of products, or as an
inducement t.hereto, by any scheme whichl involves lottery, misrepre-
sentation, or' fraud.
SEC. 7. Defamation.
No member of the industry shall cause the defamaation of comipeti-
tors by falsely imnputing to them dishonorable conduct, inabilityv to
perfrm ontact, qestionable credit. standing, or make other false
representations oralsedsaaeeto h rd rqaiyo
their goods.
SEc. 8. Threats of Litigation.
No members~ of thre industry shall publish or circularize threats or
suits for infringement of patents or trade magrks or of any other legal
proceedings not miade in good faith, and having the tendency or
effect of harassing competitors or intimidating their customers.
SEc. 9. Espionage of Comipetitors.
No miemnber of the industry shall secure or cause to be secured con-
fident~ial information concerning the business of a competitor by a
false or misleadinlg statement or representation, or by a false imper-
sonationi of one in authority, or by bribery, or by any others unfair'
met~hodl.
SEC. 10. Advl\ertising.
Persons engagedl inl this industry shall be free to carry on andvertis-
ing programs separa~tefy and independently, provided, however, that
the failure t~o comlly with the followinng requirements and regula-
tions as a basis for fair trade practice advertising shall be considered
an unfair trade practice:
(a) No advertising shall be miade which is false or mlisleadling..
(b) No instrument, discount, or other considerations shall be given
to any miusiciani or musical organization in return for photogr~a~ph
testimonial for use inl advertising.
(c) Photographs and testimonials of individual musicians or miusi-
alorganizations used in connection with advertising shall be used
onywhen they are photographs and testimonials' of P layers or organ-
iztons who actually pleay and recommend particular makes of
instruments; who have themselves purchased their instruments and
who have not received any excessive discount, allowance, cash, or any
other valuable consideration to induce then to buy or to recommlend







37i9


or to endorse such particular inst~rument~s. All Euch testimonials
must be dated and the dates thereof printed in eachi advertisement.
(d) No organization or its director shall be advertisedl inm sulch
a manner as to imply that more of a certain manke of instruments
are in use than are actually in use in such organization. Reference
to such make of instrument must in all cases be specific as to the
num er in use.
(e) No manufacturer shall place advertising in programs or other
publicity material of any musical organization, or contribute any
part of the cost of such program or other publicity material.
SEc. 11. Other UTnfair Practices.
Nothing in this Code shall limit the effect of any adjudicationn by
the Courts or holding by the Federal Trade Commission on comn-
plaint, finding, and order, that any practice or method is unfair,
providinng that such adljudiention or holding is not inconsistent with
any provision of the Act or of this Code.
rlRTICLE \Y111-nI0DIFICATIONh

1. This Code anid all the provisions thereof are expressl mnade
subject to the right of the Presidlent, in accordance with the provi-
sion of subsection (b) of Section 10 of the Act, from timne to time
to cancel or mnodify any order, approval, license, rule or regulation,
issued under said Act.
2. This Code, except as to provisions required by t~he Act., mnay be
modified or amend-edl on the basis of experience or changes inl cir-
cumstances, such mnodificationls or amlendments to be based upon up-
plication to the Admininsttrator andi such notice: and hearing as he
shall specify, and to become effective on approval of the Pr~esident,
unless otherwise provided.

ARTICLE IX--ATONOPOLIES, ETC.

No provision of this Code shall be so applied as to permit. moniopo-
hies or monopohistic practices, or to chiminate, oppress, or disc~rimi-
nate against small enterprises.

ARTICLE X-PRICE INCREASES

Whereas the policy~ of the Act to increase real purchasing power
will be made mnore difficult of consummation if prices of goods and
services increase as rapidly as wageS, it is recognized that price
increases except such as miay be required to meet individual cost
should be delayed. But. when miade such increases should, so far
as possible, be limited to actual additional incr~eases in the seller's
costs.
ARTICLE XI EFFECTIVE DATE

This Code shiall become effective on the eleventh day after its
approval by the Presjident.
Approv'ed C~ode No. 273.
Registry No. 164(M)05.





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