Code of fair competition for the abrasive grain industry as approved on May 21, 1934


Material Information

Code of fair competition for the abrasive grain industry as approved on May 21, 1934
Physical Description:
p. 303-314, 4 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Abrasives industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Approved code no. 438; Registry no. 1001-04."
General Note:
"Includes amendment no. 1."
General Note:
Includes errata

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004850647
oclc - 56010278
lccn - 34026681
lcc - HD3616.U452 A23 v appr.
System ID:

Full Text





1 I
Ibrs sal tby Superltende nt of o cusnents Wishi~ngtnD.C. Prie 5 ce~nt

Approved Code No,438

Registry No. 1001--04




i' I



This publication is for sale by the Superintendenlt of Documents, Government
Printing Office. Washington, D.C., and by district o~ffies of the Bureau of
Foreign and Dotmestic Commerce.

Atlanta, Ga.: 504 Post Office Building.
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Battle, ~Wash.: 809 Federal Offtice Building.

Approved Code No.aa 488Reisry~ No. 1001-04





As Approved on May 21, 1934

Page 319, Article VII, Section 8 (b) second line filed should be
" ~filled."
771095* 829-162---34P


Approved Code No. 488 Registry No. 1001-04





As Approved on May 21, 1934

Page 312, Article VII, Section 8 (b) secondl line filed should be
"" filled."

Digitized by the Internet Archive
in 2011 with funding from
University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation

Approved Code No. 438



As Approved on May 21, 1034


An application having been duly made pursuant to and in full
compliance writh the provisions of Title I of the National Industrial
Recovery Act, approved June 161 1933, for aplproval of a Code of
Fair Competition for the Abrasive Grain Industry, and hearings
having been duly held thereon and the annexed report on said Co de
cotanng fidigs with :respect thlereto, having been made an
directed to the President:
NOWi, THEREFORE, on behalf of the President of the UCnited
States, I, Hugh S. Johnson, Admninistrat~or for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of thte Presi-
dent, including Executive Order No. 6543--A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said ~Code complies in all respects with the
pertinent provisions and will promote the policy an~d purposes of
said Title of said Act; and do hereby order thatt said Code of F~air
Competition be and is hereby approved.
Thnan S. JoaNson,
Administrator for Indust~rial2 Recovery.
Approval recommended:
Division Ad~ministrartor.
May 1, 1934.
ooorr e4-54--us-as4 (sos)


The White HEous~e.
Smr: This is a report on the Code of Fair Competition for the~
Abrasive Grain Industry of the Un~ited States, as revised after a
Public Hea~ring conducted in WFashing~ton on. the 21st, day of March,
1934, in accordance wiith the provisions of thle National Industrial
Recovery Act.

FEactory employees are limited to eight (8) hours per day; clerical
and office employees may work nine (9) hours in any one day but
a normal work: da~y is eight (8) hours. All emnploees are li~mitedl
to forty (40) hours per week of six (6) days, except on emergency
maintenance and repair work. urn peak periods .overtime is
permitted to the extent of thirtly-tw~b;no (312 hours in any three months'
period. Shipping crews land truck dr~ivers are permitted ten per
cent (10%1) hourly tolerance. Certain manlagerialn employees receiv-
ing thirty-five ($35.00) dollars a week or more, anrd outside sales-
men are exempt fromt the hourly provisions.
A minimum wage of not less than forty (40) cents per hour is
established. Female employees will receive the same rate of pay
as male employees for substantially the same class of work. Clerical
employees will be paid not less than fifteen !$15.00) dollars per
week, aind office boys, girls and messengers will be paidl not less
than twelve ($1~2.00) dollars per weekr.

The forty (40) hour maximum week adopted~ by the President's
Re~emqloyment Agreement provided by the Code,- and the new busi-
ness since :19373 has increased employment fifty-eight (58) per cent.
Thfe average hours worked in 1929 were 52.9 which average dropped
to a low of 38.7 hours in 1933. Employment in June, 1933, was
only 52.3 per cent of the 1929 averagen~ but by October~ employment
increased to 82 per cent.
Wages per hour averaged 6i2.1 cents in 19293 and showed an increase
to 65.1 cents in 1933. T'he Industry has an inveistedl capital of over
$1~0;000,000.00 and shows average yearly sales of approxximately
$5,500,000.00 for the past five (5) years.

The Deputy Administrator in, his final report to me on said Code
having found as helrein set forth and on the basis of all the proceed-
ings in this matter;


I find that:
(a) !Said Code is well designed to promote the policies and pur-
poses of TIitle I of the National Industrial RecovetryT Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish thie amount thereof andl will pro-
vride for the general welfare byprmin hognzaonfi-
dusty fr th pupos of oopratve action among the trade groupIs,
by inducing and maintaining united action of labor and mnanage-
ment umder adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacityT of :industries,
avoiding undue restriction of production exceptt as may be tem-
porarily requrired), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re,
during and relieving unemployment, by improving standards of
labor, and by otherwise rehatbilitatiner industry.
(b) Said ICndustry normally employs not more than; 50,000 emp-
ployees;; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without hlmita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof ; and that applicant group> is an
industrial association truly representative of the aforesaid Industry;
and that said association imposes no inequitable restrictions on
admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e)l The Code Is not designed to and wlill not eliminate or oppress
salenterprises 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
For these reasons, this Code has been approved by me.
HUan 8. JoaNSOw,
Mar 21, 1934.



To effec~tuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Abrasive Gra~in Industry, and shall be the
standard of fair competition for such Industry and shall be binding
upon every member thereof.

SECTION 1. The term "Abrasive Grain Industry or "L Industry "
is defined to mean the manufacture in electric furnaces of mineral
abrasives and/or the reduction of electric furllace mineral abrasives
or natural mineral abrasives to grain sites and the sale of these
products by the manufacturer.
SECTIION 2. The terml "Associaztion mleansa the Abrasive Grain
SECTION' 3. The term "' E~mplo~yee as used herein includes any
and all persons engaged in the Industry, however compensated,
except a, member of Indbustry.
SEC.TION 4. The term Employ~er as used herein includes anyone
by whom any such; emplo ee is compensated or emple ed.
SECTION 5. The 'term Member o'f the Indlustryr includes, but
without limnit.ation, any individual, partnership, association, corpo-
ration, or other form. of enterprise engaged in the Industry, either
as an employer or on his or its own behalf.
SECTION 6. The termn "Act means Title I of the National Indus-
trial Recovery Act.
SECTION '7. The term "Administrator means th~e Administrator
for Inrdustrial Rlecovery.
SECTION 8. The President as used herein means the Pre~sidett
of the United States.


SETION 1. No employee, except as hereinafter provided, shall be
permitted to work in excess of forty (40) hours in any seven (7)
day period, or more than eight (8) hours in any twenty-four (24)
hour period provided, however, that during any period in which a
concentrated demadnd upon any division of the Inmdustry shall place
an unusual and temporary bur~den. for production upon its facilities,
an employee of such division may be permitted to work not more
than thirty-two (32) additional hours in anly three (3) months'
period, but not more than forty-eight (48) hours in any seven (7)
((so) '


day period, or more than eight (8) hours in any twfenty-four (24
h our period; and provided further that there shall be no intentional
duplication of such additional hours wol~rke byI employing one ga~ngd
of workmen after another for this purpose.
SECIOr~N 9. NO nrCCOnting, clerical Office, service, or sales employ-
ees, except as hereinafter provided, shall be permitted to work in
excess of forty (40O) hours In any one week or nine (9) hours in any
one dlay, A normal day shall not exceed eight (8) hours.
SECTION 3. ~The maximum hours fixed in thie foragromng sections
shall not apply to employees in a managerial, supervisory, or execu-
tive capacity, receiving thirty-five (35) dollars or more per week;,
or to outside salesmen. Furthermore, employees on emergency main-
tenance and repair work involving break-downs or protection of
life and property, may be employed in excess of the maximum hoursY
fixed in the foregoing sections.
SECTION 4, All employees to whom Sections 1, 3 and 6 of this
Article III apply, excepting; managerial, executive, and supervisory
employees, receiving thirty-Ifive (35) dollars or more! per wReekwh
work more than forty (40) hours in any seven (7) day period, or
who worrk more than eight (8) hours in any twenty-four (24) hour
period, shall be paid not less than one and one half (1%z) times
their normal rate of pay for such excess hours.
SncnroN 5. No6 watchmen shall be permitted to work: in excess ofE
fiftyl-six (56) hours in any one week;.
E~CTION 6. Employees engaged on shlippin~g~ rewsO including
truck drivers, shall be permittedl a, toleranceoftn(0prcn
over the fortyr (40) hours provided in Section 2 of this Article III.
SECTION 7. No employee shall be permitted to work in excess of
six (6) days in any one (1) week.
SECTION 8. NO emnploy~er shall knowingrly permit any employee to
work for any time which, when totalled with that already per-
formed for another employer or employers, exceeds the maximum
permitted herein.
SECTION i. NO employee, except as otherwise herein provided,
shall be paid less than at the rate of forty (40) cents per hour.
SECTION 9,. Prompt adjustments shall be made in all rates in which
equitable adjustments have not been made, or are not in effect. In
no case shall the hourly rate be reduced and no change shall be made
in piece-work rates which will reduce the former hourly or daily
earnings of piece workrers. Each member shall report such adjust-
ments to the Code Authority within thirty (30) days after the
effective date and to the Administrator on his request.
SECTION 3. No employer shall re-classify employees or duties of
occupations performed, or engage mn any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of
this Code.
SECTION 4. Employers shallagewihmpoestmkepy
mentof ll age weklyin awfl crrency, or by negotiable checks,
payable on demand. Such wages shall be exempt from any payment
forpenion, isurnce orsick benefits other than those voluntarily
paid by employees. Epoyers, or their agents, shall not accept
directly or directly, rebtsosuhwgsorivanhi o


value, or extend any favors, to any person for the purpose of
in~fiuencing rates of wages, or working conditions, of their employees.
The provisions of this section regarding payment of wages weekly
shall not apply to persons employed in a mana~ger~ia.1 or executive
capacity1 who earn, not less than thirty-five (35) do-llars per week, or
to persons employed in clerical or office work. Wagttes for persons
employed in clerical or office work may be paid at the enld of pay
periods not to ~exceed bimonthly periods. i
SECTION 5. Th~e minimum wag~e that shall be paid to employees to
whom Section 2 of Article III applies shall be not less than fifteen
(15) dollars per week; provided, however, that office boys and girls
andl messengers may. be paiid at a rate of not less than eighty (80)
Perntoth mimm salary etbihdi hsScin5o
Article IV herein; and provided, further that the number of such
office: boys and girls and messengers so paid shall constitute not more
than three (8) percent of the total number of employees of any one
e~mploy~er, but in any case such employer shall be entitled to tw~o (2)
such ~emrployees.
SECTION 6. A person, whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity,, may be em plowed
on Light work at a ~a~ge below the minimum established by thig
Code, if the employer obtains from the State Authorit~y, designatedd
by the United States Department of L~abor, aj certificate authorizing:
sulch person's employment at such wages and for such hours as shall.
be stated in th~e certificate.. Such authority shall be guided by the
instructions of the United States Departmnent bf La~bor in issumng
certificates to such persons. Each employer shall file monthly with
the Code Authority a list of all such persons employed by him,
showing the, wages paid to, and the maximum hours of workr for
such emplo ee.
SECTION ].Female employees performing substantially the same
work as male employees shall receive the samre rate as male emnply
ees, and where they displace male employees they shall receiveth
same rate of earningfs as the men they reqelace.
SECTION. 8. This Article establishes mmrmum rates of pay irre-
spectivre -of whether an employee is actually compensated on a time
rate, pieceworkr, or other basis.

SECTION 1. No~ person under sixteen (16)- years of agre shall be
empllloyed in the Indust~ry anld no person under eighteen (18) years
of age shall be employed at operations or occupations hazardous
in nature or dletrimecntal to health. In any State an employer shall
be deemed to have complied with the provisions if he shall have on
file a certificate or permit duly signed by the Authority in such
State empowered to issue e~mploymnent or age certificates or permits,
showing that the employee is of the required agre. The Code Au-
thlority shllt submI1it to the ~Administrator for approval, within three
(3) months after the effective dlate of this Code, a list of operations
or occupations ha~zardous in nature or detrimental to health.
SECTION 2. Employees shall have the right to organize and bargain
collectively through represent~atives of their ownb c~hoosing, and shall
be free fr~om 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.
SECTION 8. NO ODmpl0yee and no one seekhig employment shall be
re ~uired as a condition of emplogn~ent to join any com any union
or to reframn from Jolzmng, organizing, or assisting a la or organt-
zation of his own choosing.
SECTION 4. Employers shall comply weith the maximum hours of
labor, minimum rates of pay and other conditions of employ~ment,
approved or prescribed by th resident.
SECTION 5. No provision in this Code shall supersede any State
or Federal law which imposes on, emnployers m~ore stringent require-
ments as to age of employees, wages, hours of work or as to safety,
health, sanitary, or general w~orkingv conditions, or mnsur~ance or 6ire
protection, than are imposed by t.hls Code.
SECTION 6. Each employer shall post and keep posted in a place
easily accessible to all employees in eveyplant or factorycbopis
of the labor provisions of this Code. Teposting ofthlbo
provisions of this Code shall be in accordance with rules~ and reguls-
tions of the President or the Administrator.
SECTION 7. Every employer shall make reasonable provision for
the safety and health of ~his employees at the place and during the
hours of their employpment.
SECTION 8. Standards for safety and health shall be submitted
by the Code Authority to the Adtministrator for approval within six
(6) months after the effective date of this Code.
DECTION 9. No employee s~hall be dismissed by reason of making
a complaint or giving evidence with respect to a violation of this

SECTION 1. (a) To effectuate the policies of the Act, a Code Au-
thority is hereby constituted. The Code Authority shall consist of
not less than seven (7) persons and not more than eight (8) persons.
Seven members shall be selected from the Association by a fair
method of selection and one member who is not a member of the
Association may be selected from the Industry by non-memb~ers of
the Association.
The Administrator may appoint one (1) to three (3) members
without vote to represent the Administrator.
(b) MIembers of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and
to participate in the selection of t~he members thereof by assenting
to and complying with the requirements of this Code. Each member
of the Industry shall bear his or its proportionate share of the ex-
penses of the Code Authority and the administration of the Clode,
which proportionate share shall be based upon the gross sales (less
discounts and returns) or upon such other fair and equitable basi's
as the Code Authority may specify, subject to review by the Admin-
istrator, and such funds shall be collected by the Code Authority.
(c) Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority, shall
(1) impose no inequitable restriction on membership, and (2) submit


to the A~dm~inistrator true copies of its articles of association, by-laws,
regulattions, and anyr amendmenrts when made thzereto, together with
such other inlformantion as to membership, organization, and activities
as the ALdministrator m~ay deem, necessary to effectuate the purposes
of the Act.
(d) In order that the Code Authority shall, at all times, be truly
reresnatv othInustry, an nohr respects comply with
the pr1ovisions of thre Act, thle Administrator mlay prescribe such
hea rings.L as he mayT deem proper; and thereafter, if he shall find
that the Code Authority is not truly .representative or does not
in other respects comply with the provisions of thle Act, may require
an, appropriate modifiication in, the method of selection of the Code
(e) I~f the ALdmninistrator shall at any time determine that any
action of a Code Authority or any agency thereof may be unfair
or unjust or contrary to the public interest, the Administrator may
require that such action be suspended to afford an opportunity for
inv-estig~ation of the merits of such action and further consideration
by such code authority or agency pending final action which shall
not be effective unless the Acdmnimstrator approves or unless he shall
fail to disapprove after thirty doays' notice to him of intention to
proceed with such action in its original or modified form.
SECTIION 2. The C~Cod? Aut~horityv shall1 ha~ve the following powers
and duties.
(a) Subject to such rules and regulations as may be issued by
the Administrator, to insure the execution of the provisions of this
Code and to provide for the compliance of the Industry with the
provisions of the Act.
(b) To adopt by-lawvs and rules and regulations for its procedure.
(c) TPo obtain from members of the Industry such information
anrd reports as are required for the administration of the Codie.
In addition to information required to be submitted t~o the Code
Authority, members of the IndustryS subject to this Code shall fur-
nish such statistical information. as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act to
such federal and state agenciesri as he may designate; provided that
nothing in this Code shall relieve any member of the Industry of
any existing obligations to furnish reports to any government
agency. Nplo individual report shall be disclosed to any other mem-
ber of the Indulstry or any other party except to such other
governmental agencies as, may be directed by the Administrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrymg~ out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the? provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other codes,
if anyI, as m~ay be related to or affect members of the industry.
(f) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authority and its activities.


(g) To cooperate with the Adminisrtrator in regulat~ing the use
of a.ny National Recovery Administration insiglni solely by those
members of the Industry wiho have assent-ed to, and are comaplyinga
wFith, this Code.
(h) To recommend to the Administratorl any action or measures
deemed advisable, including further fair trade practice provisions to
govern members of the Industry in their relations w~sith each other
or with other industries; measures for industrial planning and sta-
bilization of employment; and including modifications of this Code
which shall become effective as part hereof upion approval by the
Adminis-trator after such notice andl hearing as he may specify..
(i) To appoint a Trade Practice Committee which shall meet with
the Trade Practice Committees ap~pointedl under such other Codes
as may be related to the Industry for the purpose of formulating
fair trade practices to go~ver the relationships between employers
under this Clode and under such others to the end tha~t such fair trade
practices may be proposed to the Administrator as amendments to
this Code and such other Codles.
(-j} T'o provide appropriate facilities for ar~bit~r~ation, and subject
to the approval of the Admninist~rator;, to prescribe rules of procedure
and rules to effect compliance with awcPar'ds and determinations.

It shaUl be an unfair method of competition and a violation of this
Code for any member of t~he Indust~ryto enga~ge in any of the
following practices:
SECTION 1. The false marking or br~andinga of the products of the
Industry, with the intent of misleading or deceiving purchasers with
respect to the quantity, quality, size, or substance of the goods
SECTrION 2. MZaking or causing or permitting to be made or pub
lished any false, untrue, or deceptive statement by way of advertise-
ment or otherwise concerning the quality, quantity, -substance,
character, nat-ure, origin, size, or preparation of any product of the
Industry, having the tendency and capacity to mislead or receive
purchasers or prospective purchasers or to affect injuriously the
business of competitors.
SECTION 3. The imitation of the trade marks, trade names, or
other marks of identification of competitors, having the tendency
and capacity to mislead or deceive purchasers or prospective
p urch ase rs.
SECTION 4. The defamation of competitors by falsely imputing
to them dishonorable conduct, inability to perform contracts, or ques-
tionable credit standing, or by other false representation, or the false
disparagement of the quality of their goods.
SECTION 5. Wilfully inducing or attempting to induce the breach
of existing contracts between competitors and their customers, or
interfering with or obstructing the performance of any such con-
tractual duties or services, with the purpose and effect of hampering,
i~njrng, or embarrassing competitors In their business.
SECTIrON 6. The payment or allowance to any customer of secret
rebates, refunds, or credits, whether in the form of money or


SECTION i. Commercial BiriberyI: Griving, permitting to be given,
or directly offering to give, anything of value for the purpose of
influenemng or rewarding the action of any employee, agent, or rep-
resentative of another in relation to the business of the employer of
such employee, the principal of such agent or the represented party,
without the knowledge of such employer, principal, or party; pro-
vcided, however, that this provision shall not be construed to prohibit
free and general distribution of articles commonly used for adver-
tising except so far as such articles are actually used for commercial
bribery as hnereinabove defined.
SEcTION 8. Price Guarantee~s shall not be given except in the
following form:
(a) On bona fide orders covering definite quantities -of definite
spcifctions, the price prevailing on the date the order is placed
shal aply to all shipments made within eight (8) weeks of the
date of the order. On such shipments as may be deferred beyond
the eight (8) weeks' period, at the request of the customer, the
price pre-vaihing at the time of shipment shall apply.
() Any written quotation accepted by a customer within tetn
(10 days for shipment within eight (8) weeks may be filed at the
price quoted.
SECTION 9. Each member of the Industry wcithzin twep-nty (20)
days after the effective date of this Code shall file withr the Code An~-
thority a net price list or price list and discount sheet, as the case
may be, and all special prices, freight allowances, and trade dis-
counts, individually prepared by him, showing his current prices,
or prices and discounts and terms of sale and payment, and if he
so desires, t~he names of his customers, to whoma limit prices are
quoted. This information shall be open to examination at the office
of the Code Authority to all interested parties as each may be con-
cerned. No m~emlber of the Industry shall deviate from his prices
Sas thus filed unless and until revised lists, which shall become ef-
fective immediately upon filing, shall have been filed with t~he Code
Authority, copies of which shall in like manner be available for
examinatoln. No member of the Industry shall sell his products
at prices, or on terms, more favorable than those provided in his
current net price list, or price list and discount sheet, as submitted
to the Code Authority, except ats otherwise ~provided herein, nor
shall he grant quantity p rices, except on. the inclusion in one sh ip-
ment to one destination of `the quantity on which such price is
granted, provided, however, if any member of the Industryr, act-
mng mi good faith, is unable to makle delivery in one shipment of all
thie material ordered byJ a consumer customer upon which order such
customer has been granted a quantity price, such member shall
be permitted to make immediate shipment of the quantity or quan-
tities of thle product in his hands available for that purpose, and
to mrake comrplete shipment of the remainder of such order as soon
as possible thereafter, provided however that each portion of such
order, to be knwn as a split shipment so shipped shall -be ac-
companied by an invoice which in each case shaUl show the total
quantity of the order for such product, and the quantity of the
product included in each individual invoiced shipment; copies of
aHl invoices covering such split abipments must be fied immediately


with the Code .Authority; and provided, further, that those in-
dividual sizes of abrasive gramns re~cognized~ in the Industry as sur-
plus stocks and so classified by the Code Ai4uthority may be offered
or sold by any party to this Code for not less than sixrty six and
six tenths (G6.6) per cent of the hlighest price for like quantity1 of
such size or sizes :filed by said party all such quotations or sales
shall be immedciately reported mn writing to the Clode Authority in
the manner to be prescribedl by it.
SEC'TIONI 10. A~brasive Grains may- be furnished for trial purlposes
only under the followiing terms:
Full payment is to be made if grains are satisfactory, or if partially
satisfactory and usable, to be paid for on the basis of value received,
or if ulnusable, to be returned for full cr~edit. _IAny dev\iation from
these terms shall be considered as urnfair competition.
SECTION 11. Grivna Or Offering to give for free trial of abrasive
grains in excess of fifteen pounds of any one size or kind at any one
time is an abuse and is herebyl defined as unfair competition.
SECTION 12. Conditioningr th~e sale of any p~articullar material upon
the purchase by a customer of other products of thne supplier, is
decfinecd as unfair competition.
SECTION li3. Placlngr ally product of t~he Industry in the ~po~session
of or under the control of a consumer customer on, conlsignmnent is
hereby defined as unfair competition.
SECTION 1. This Code, andi all the provisions thereof, is explressly
made subjert. to the right of thie Presiden~t, in accor~dance with the
provisions of Sub-Section (b) of Sectionll 10 of the National Inidus-
trial Recoveryr Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation issuedl under Title I of said Act,
andl specifically, but without limitation, to the right of the 1Presidecnt
to cancel or modify his approval of this Code, or any conditions
imposed by him upon his approval thereof.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified or supplemented on the basis of experience or
changes in circumstances, such modlifications to be based upon appli-
cation by the Code Authority to the Administrator with such notice
of hearing as he shall specify, and to become effective on approval by
the President.
No provision of this Code shall be so applied as to permit monoIy
obies or monopolistic practices, or to eliminate, oppress, or discrima-
nate against small enterprises.
This Code shall become effective on the third Monday after its
approval by the President and shall be binding upon every member
of the Industry.
Approved Code No. 438.
Registry No. 1001-44.

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