Proposed code of fair competition for the barn equipment industry as submitted on August 30, 1933


Material Information

Proposed code of fair competition for the barn equipment industry as submitted on August 30, 1933
Portion of title:
Barn equipment industry
Physical Description:
11 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Barns -- Equipment and supplies -- United States   ( lcsh )
Farm buildings -- Mechanical equipment -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Barn equipment, as used in this code, includes the following items: stanchions, stalls, pens, feed trucks, milk stools, bull staffs, gutter and manger drains, ventilators, water cups, barn scrapers, supporting columns, horse stall equipment, hay racks, corner feed boxes, hog pen panel, and cupolas.
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. 1637a-05."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004921559
oclc - 639312090
System ID:

Full Text





e r te Barn Equipment Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Ad ministration
as applying to this industry


IFer ele by the Baperin~andent of Doculments, Washington, D.C. - Price 5 cents


SusuLIrrrm BY



The Barn Equipmlent ALssociation, a national trade associationl for
this industry representing i-n its mlembership more thann 7i5 pelrcent of
the production of barn equipment. in the U'nitedl States, byr nation
taken at a mleet~ing-in the? City of Chicago on the- 15t~h day~ of Juns
1933, does hereby sulbscr~ibe. to the policy, provisions, rules, and
regulations of thze National Industry RLecovery A~ct.
Thle Barn 1Equipmenrt Associat~ion, by unanimous vote at this meet-
ing, decided to com~e umder the pron-sio~ns of this act w~hichk permit the
voluntary adoption of a Codle of Fair Competition andl authorized the
creation of the Executive Commnitt~ee of five members of the asso-
ciation to draft and present to the Governlment for Presid:ential
approval the Codle which is submiitted herewith.

The products of th~is industryv arle sold to thle farmer, largely
through dealers. Duer to the lImmited buying power of the dairy
farmer, thiis industry has been in an abnormally depressed condition
for the past several years. With the rapidly decreasing consump-
tion of the products of this industry, competitive conditions have
been extremely destructive, resulting in severe loss of wages for the:
worker, and in the destruction of capital values and cajshi reserves for
the producer.

Barn equipment, as used in this Code, includes the following
Stanchions, Stalls, Pens, Feed trucks, Mlilk stools, Bu~ll staffs,
Gutter and manger drains, Ventilators, Water cups, Barn~ scrapers,
Supporting columns, Horse stall equipment, Hay racks, Corner feed
boxes, Hog pen panel, Cupolas.
Ventilation systems for farmi bulildings includr-ing cupolas; Litter,
feed, milk can, and harness carriers and accessories; Kindred items
sold with the above.

The Barn Equipment Association was organized on August 2,
1928, under auspices of the Federal Trade Commission and adopted
rules of fair trade practice with approval of the Clommission on
July 11, 1929.
9113--33 my a


The present o~ffcers of the Barnl Equipm~ent Association are as
follows :
President: W. D. James, James Manufacturing Co., For~t Atkin-
son, WPis.
1st Vice ]President: HI. B3. Megran, Starline, Inc., Harvard, Ill.
2nd Vice President: R. Bruce Louden, Louden MIachinery Co.,
Fairfield, Iowa.
Treasurer: R. C. M~itchell, Mitchell Mfg. Co., Milwaulkee, Wis.
Executive Secretary: H. L. Ashworth, 125 East Wells Street,
IMilwaukee, Wis.

W. D. James (chairman.), President, James Manufacturing Co.,
Fort Atkinson, Wis.
B. B. Bell, President, Starline, Inc. Harvard, Ill.
A. E. L~abagh, Treasurer, Louden Rifachinery7 Co.,1~ Faireld, Iowa.
JTos. B. Clay, President, Clay Equip~ment Co., CdrFls o
W. H3. Miller, Sec~retary, Key M/lanufacturing Co., Cantonl, Ohio.


The! membership of the Barn Eqruipment Assoc~iation, representingr
more than 75 percent of the production of barn equipment in the
United States, includes the followingJ companies:
Clay Equipment Co., Cedar F'alls, Iow79a; Gardlner Mfg. Co., Hor~i-
con, Wis.; H. D. Hudson Mfg. Co., Chicago, Ill.; K~ing Ventilat~inga
Co., Owatonna, M~inn.; MilwFaukiee Hay Tool Co., M~ilwaukee, Wis.;
Neyr MSanufacturing Co., Canton, Ohio; Rassmatnn Mffg. Co., Beaver
Dam, W~is.; Starline, Inc., Harvard, Illinois; FEranklin Equipment
Company, Monticello, Iowa; Hall Manufacturing Co., Cedar Rapids,
Iowa; James M~anurfacturingr Co., Fort Atkinson, Wis.; Louden M~a-
chninery Company, Fairfield Iowa; Miitchell Manufac~turinga Co., M~il-
waukree, Wis.; Olson IManufacturinlg Co., A1?lbert L~ea, nlinn.; Roches-
ter Born Equipment Co., Rochester, ~N.Yc.; Bond Foundry &~ Ma~-
chine Co., M~anhein, Penn.
.Manufacturers of barn equipment representing the balance of the
production of barn equipment in the UTnitedl Stat~es, which havre been
invited to become members of this association but have not yet
affilia~ted as members, include the following companies:
Acorn,,,, Bran Mf. C'o., Stevens Point, Wis.; Berg M~anufacturing
Co., 1Marshfield, Wis.; Fiitzgerald Mfg. Co.. Mlerrill, Wisconsin;
Weise & Kuhlman, L~ester Prairie, Miinn.; 1Bell M~anufacturinga Co.,
Beav~er Dam, WTiisconsin; Grubb Barn Equipmient Co., Baraboo, Wis-
consin; Middle West MSfg. Co., Beaver Damn, W~isconsmn; Dells M~an-
ufacturing Co., W~isonsin. Dells, Wis.
So far as can be determined by this Association the above lists
of members and nonmembers include all of, the! factors engaged in
this industry. ~
The Barn Equipm'ent Associaltion, in behalf of this industry, does
hePreby~ submit and~ sak for applroval of the fo~llowcing C~ode.


Anascran I--PURPOSE

This Code is set up for the purpose of increasing employment,
maintaining fair and adequate wages, and elim~inating unfair trade
practices, to the end of rehabilitating the barn equipment industry
in all its phases and enabling it to do its part towardl estab~lishing
that balance of industries which is necessary to the restoration and
maintenance of the highest practical degree of public welfare.-
It is th~e declared purpose of the barn equipment inlust~ry and'
adherents to this Code to restore the income of enterprises within
the industry to levels which will make possible the maintenance of
fair wages and avoid the further depletion and destruction of capital

Participation in. this Code, and anry subsequent revision of orD
addition to the Code, shall be extended to any person, partnership
or corporation in the barn equippment industry who accepts his
share of the cost and responsibility, as well as thne benefit, of such
participation by becoming a member of the Barn Equipment Associa-
No initiation or entrance fee shall be charged for membership in
the Barn Equipment Association, but there shall be levied against
all members of the association annual dues in the amount of, $25.00.
Additional dues needed to finance the activities of the association in
carrying out and enforcing the Ciode of the industry shall be levied
against each member in proportion to the volume of its sales of the.
items covered by this Code.


(1) No provision of this Code shall be interpreted or applied in
such a manner as to--
(a) Promote monopolies.
(b) Permit or encourage unfair competition.
(c) Eliminate or oppress? or discriminate against, small enter-
prises in the barn equipment industry.
(2) This Code or any of its provisions may be exncelled or
modified or any approved rule issued thereunder shall be ineffective
to the extent necessary to conform to any action by the Presidlent of
the United States under section 10 (b) of the National Industrial
Recovery Act.
(3) Amendments to this Code may be proposed to the Executive
Secretary by any1 member or members of the Barn Equipment Asso-
ciation, or mlay be initiated by the Executive Committee and may be
adopted by the affirmative vote of a two-third major~ity of the mem-
bers of the association, and when approved by the President of the
ULnited States shall be effective. Any amendments proposed shall be
submitted in writing to all members of association not less than two
weeks before coming before the association for action.

(4) The Executive Committee and -the Executive Secr~etary of the-
association shall represent the Barn. Equipment Association in all
contacts with the Admlinistr~ator of the N~ational Industrial Recovery
Act, or his agents, except if a member of the association shall feel
arggrieved on account of the provisions of this Code or of an amendl-
ment thereto or rule or regulation mnade pursuant ther~eto, such memn-
ber shall have the right directly to present his position to the Presi-
dent of the United States or his duly authiorizedl agent.
(5) TPhe provisions, rules, regulationsi, and restrictions set forth
in this Code, when approved by the Pr~esident of the United St~ates,
shall become binding upon all producers of barn equipment within
ten day~s after final approval,
(6) Rights of wLcorkXers.- (a) Emnployees in thle barn equipment
industcryr sha~ll t~he. right to organize and bargain collectively
through representatives of their own choosing, and shall be free fr~oml
the interference, restraint, or coercion of emnployer~s of labor, or their
agents, in the designation of such representatives or in self-ol.rgniza-
tion, or in other conc~ertedl activities for the purpose of collective
barIga i ning or other mutual aid or protection.
(b) ~No employee in the barn, equipmllent industry, anrd no one
seeking employment therein, shall be required as a condlit~ion of em-
ployment to Som any compa~-ny umion, or to r~efra~in from oining,
organizing, or assisting a labor organization o-f his onar choosing.~n
(c) ]Emnployers of labor in the barn. eqluipmlent inlustr~y shlall
comply with the maximsiumn hours of labor, mniinimum rates of pay, and
other conditions of employment approved or prescribed by ~the Pr~esi-
dent of the United States.
(d) It is clearly understood that the foregoing pa1~7raraphs9 do not,
impair in any particular the constitutional rights of the employee
and employer to bargain individually or collectively as ma~y be
mutually satisfactory to them; nor do they impair the joint right of
employer and em~ployree to operate an open shop.
(e) Nothing in this Code is to prevent the selection, :retent.ion, and
advancement of emp~loytees on. the basis of their individual mer~it, as
determined by employer, without regard to their affiliation or non-
affiliation with any labor organizations.
(f) I~t is expresslyT st~ipulat~ed that neither any provision of this
Code nor the fact or manner of its prepar~ation, presentation, adop-
tion, or filing shall be construed as constituting a waiver of any
constitutional right which thie several members of the Bur~n Equip-
ment Association or industry light otherwise have and enjoy. Any
such pr~ovisionl which ma~y limit or abrogate anay constitutional right
is inserted under the unavoidable. requirements of the Nat~iona~l
Industrial Recovery Act as the same is understood by said members
and not voluntar~ily nor w~ith their appr~oval as a contractual relinl-
qunishmnent of such right.


The administration officer of this Code shall be the Executive
Secretary of the Barn Equipment Association. 'He shall be required

to submit. and to explain the provisionspupes, and aimns of the
Code to all producers of born eqjuipmlent, including mnem-bers and
nonmnembers of the Born Equipmlent. Association.
Any producer of born equipment injured by the v.iolationl of this
Code shall file with the Executive Secrletar~y a wrri-tten comiplaint
setting forth the facts in the matter and requesting such relief as
mlay be just.
The Executivee Se'cretary of the Bar~n Eqiuip~ment. Association~ is
authorized and directed to en~for~ce v~igor~ously, equitably, and with-
ou~t exception a. system of discipline for violators ofE this Code or any
of its rules, regulations, or provisions as follows:
A fine against violator~s, in cases w~her~e the violation involvets a
sale of barn eq-uipmnent, of anl amount not to exceed fifty percent of
the estalblishled price of the eq-uipmlenlt sold.
A fine againrst violator~s, where the sale of equipment mayu not be
involved, obf an amonOlt not to exceed five hundreds dollars ($500).
The Executive Secretary may use his discretion, as circ~umstances~;
warrant in substituting an arbltrary) fine f~or the per~centage of sale
Violation of any or all rules of thle Codle mnay be consid~lered a sepa-
rat~e offense for each and ev'ery dayl suchl rules are v~iolat~ed.
If found necessary to the welfare of the industry or in support ofE
the pr~oper administration of this Code, the Exiecutivce Secretary
may give full publicityr to the fuets r~ega~rdtling any violation by any
person of any ruile or regulation of this Code, and the hearing and
deter~minnation thereon, without any' liability for libel or slander
arising therefroml.
Any fines assessed and collected shall be turned into the Associn-
tion Treasury. Su1ch money shall be available f~or awanrding financial
damages to any membiler injured by any violations. Finles collected
and not. so used shall be applied to the Association's operating
Anyr member of the Barn Equipment Associatfion or any producer
of barn equipment who is not a member of the asrsociationl shall have
the right to appeal from the ruling or decision of th~e Executive
Secretary and suich appeal shall be heard byr a representative Arbi-
tr~ation Commit~tee of at least three persons, sulch committee to be
appointed by the Executive Committee of the Barn Equimn
Association from the organizations of different members of thet~
industry. Under this provision a separate Arbitration Committee
shall be named to handle each appeal and the membership fsc
committee shall be truly representative for the purpose o:fl insuring
the parties a fair hearing, but shall not include any members of the
industry connected with or in any way involved in t~he dispute in
The decision of such Arbitra~tion Committees may be appealed by
either party to t~he association as a whole and the decision of the
association shall be final and binding. If such association decision is
not accepted and complied with by the complainant or defendant
the case shall be turned over to the Executive Committee of the
industry for submission to the Administrator of the National
Industrial Recovlery Act.


The Executive Secretary shall h~avej the power and authorityI to
require from each manufacturer of barn equipment from time to
time such wage and labor reports, information, and records as shall
be necessary to the adequate admmistration and enforcement of t.he
provisions of this Code.
The 1Executive Secretary shall have the right at all times to
examine all records of every producer of barn equipment, when-
ever such inspection is necessary for the adequate administration
and enforcement of the provisions of this Code. It is definitely
agreed that any such information obtained by such inspection shall
be of a strictly confidential nature, except insofar as disclosure of
the facts so obtained may be necessary to thne just administration
of this Code.

T'he minimum wages paid to male employees shall be 350 p~er hnour,
and to female employees 30$ per hour, except that apprentices and
learners may be paid not less than 75%0 of the above~ minimum. The
total of such exceptions shall not be more than 5%~ of the total pay
roll; howev-er, any employer in this industryT located in a. section of
the country where a lower minimumn wage rate has been prescribed
and accepted by the President of the Unmited States in the codle of
another industry for employees in the same crafts or classifications
of labor employed in this industry shall havecr the right to employ
such crafts or classifications of labor at such lower rate.
Employees covered hereby (excluding executives; superv\iso ryL
staffs and their assistants, traveling salesmnen, collectors anld comn-
mission agents, and all employees engaged inr the pre~parat~ion, car~e
and maintenance of offce, plants, machinery and facilities, efficienlcy
research, and designing engineers; planning, stock; keeping, orler,
service, and shipping; outside supervisory service and erecting serv-
ice), shall work not more than. 48 hours in. any one week and not
more. t~han 40) hours per weepk a.verageC~ regular emlployment
reasonably in excess of such standards for not mor~e than 10%r of t.he
employees in any operation where required by the nature of their
work and further excepting temporary employment in case of
It is further understood that each manufacturer shall have the
privilege of exempting from the provisions of this section a certain
number of so-called pensioner employees; i.e., employees who by
reason of age or physical disability are not capable of performing t.hec
work of an able-bodied main but wh~oml it is desired to retain because
of their long connection, with the business. Such employees shnall be
reported separately in the maklinga of necessary current labor reports
to the Administrator.
We further agree that, with the approval of the Pr~esident, the
above rates mlay be r~evised from time to time in such manner as
wrill currently reflect an equitable adjustment to variations in cost
of living.
We further agree not to employ any mninor under 16 years of age.


It shall be unfair competition for any producer of barn equip-
ment to sell hiis product below his own cost, plus a reasonable profit.
The cost of goods sold, as mentioned in thme preceding paragraph,
shall include not only all direct material and normal direct labor
costs entering into th~e article in question but also a p~roportionate
share of all normal indirect costs of the productive process, such as
management, maintenance, operating, and other overhead expenses
of bot~h factnor and~ shipping departments plus a proportionate share
of the normal administrative, advertising, and selling expense of the

In asking approval of the trade practice rules adopted by the barn
equipment industry, attention is called to the fact that the Barn
Equipment Association adopted rules of trade practice under
auspices of and withm approval of the Federal Trade Commission on
July 11, 19129. These rules were amended by thme Federal Trade
Commission on September 19, 1930. In Group I are listed rules of
trade practice previously approved by the Federal Trade Commnis-
sion, to which the barn equipment industry subscribes and desires
to use under the National Industrial Recovery Act. In Grloup "
are listed additional rules of trade practice which have been approv-ed
by the industry as necessary to the effective administration and- en-
fo>rcement of t~e Code.

RULE 1. Ill.terfer~e nce WT'it h C'o ntract.--Th e w ilful i n ter1fe rence by
any person, firm, corporation, or association, byr any means or de-
vice whatever, writh any existing contract or order between a seller
and purchaser of any product hanndled by the indlustry, or the per-
formance of any contractual duty or service connected therewith,?
such interference being for the purpose or with thme effect of dissi-
pating, destroyvingf, or appropriating in whole or in part the patron-
age, property, or business or another, engragred in such industry, is
un fair trade practice.
RULE 2. ili~represZ) eh' ntation..-Thle sale or offering for sale of any\
product in the industry with intent to deceive customers or pr~ospec-
tive customers as to the quantity, quality, substance, or size of such
product is unfair trade practice.
RULE 3. Rfia-le8.--The payment or allowance of rebates, refunds,
credits, unearned discounts, or excessive entertainment, whether in
the form of money or otherwise, or the giving of premiums, or ex-
tending to anyone, public institutions not excepted, special prices,
terms, services, or privileges not extended to all purchasers under
like terms and conditions, is an unfair trade practice..
RU~LE 4. Price Discrimination.--Any discrimination in price be-
tween purchasers o~f the same class, excepting discrimination in price
on account of the difference in grade, or quality of the product sold,
is unfair trade practice.
RULE 5. Defamtat~ion of Character. The defamation of a competi-
tor by words or acts which call in question his business integrity,

his ability to perform his contracts, his cr~edit stalndlingr, or mnisr~epre-
sentation of the grade, quality, o~r reliability of his goods is con-
demnedd as unfair tradelt practice.
RULE 6. Ewxcess arllowances~~r. T`he allowance of tranisport~tiion or
trucking charges in, excess of thne actual or publishedl amnounlt of such
charges on pr~oduc~ts is an unfair tradle practice.
RUJLE: 7. Soi7citin~g Emp~oyees.--The solic~itaft~ion of thJe services of
Salesmen or otherll empl~loye e of other mnllember of the: industry w~ith-
out notice to the employer inv\olvedi is an unfair trad~e practice.

CuorlP II
RULE 1. Price Lists.--In. the belief that a uniform method of price
quotations will eliminate a great deal of confusion, will eliminate
much existing discrimination between purchasers of thre samet class,
and will result in mutual benefits to both thne prod~ucer and conlsumler
of barn equipment, the barn equlipmeltnt industry has agrleedl that all
prices published or distrlibutedl b~y the producers of barn equipment
shall be the manufacturer's net delivFelred~ selling ~r~ice~ t, t~he
All producers of barn equipment shalll keep on file at all times wit.h
the Executive Secretary copies of all his price lists on barln eqjuip-
ment. Any producer of barn equipment mak~lingr changes inl his
price list or lists, or contemplating thne issuanlce of new price lists,
shall give the Executivec Secretary notice of such cha~nlge or changes
at least two weeks before date on which newc pr1ices ar~e to become
effective, and he, shall not advise his selling organization (salesmen
or dealers) of such, changes, or contemplated changes, until after t.he
Executive Secretary hlas been so notified.
Inasm~uch as there is a v~r~inuce in a numlber of items in various
lines manufactur~edl by the several mnemlber~s of the industry, it. is
hereby resolved that where a quotation is called for on anl item
not manufactured by a member and he wishes to quote thereon he
shall quote the published retail price of thle manufacturers of such
item. Likewise on items jobbed, tihe establishedl pr'ice of thte. mlanu-
facturer of such jobbed items shall pre~vail. On unlisted items fa~bri-
cated for special installation, Atrticle V7II: shall be the rule to be
Any violation of this p~lan by any producer of barn equipment, is
unfair competition.
RULE 2. De68 BT~ Dis800%%s .-Definit~ion: The term Dealer for t.he
purposes of this Code shall be defined as lone operating a2 place of
busies o hs, ctdarrm stock of goods, selling at retail for the p~ur-
pose of his odeshall be further limited to those dealersa who
handle lines kindred to a Barn, Equipment, as, for instance, farmn
implements and hardware, pumps, windmills; also general stores
carrying hardware, dlealer~s in lumber, building supplies, farmn seeds,
granins, or feeds.
Builders, building .contractors, carpenters, or cement contractors,
whether or not they carry stocks of builders hardware or barnl
equipment, shall not be considered as dealers or jobber~s and shall in~
no instance be allowed a discount.

It shall be unfair comipetitioni for any~ producer of barnI equip-
ment to allow to a dealer a discount of .mor~e thian 30 percent off
consumer price schedule.
No producer of barn equipment shall permit his pr~oducts to be
handled b~y a dlealer or agent standing between producer andc con-
sumler w~ho violates any of the pr~ovisions or articles of this Code.
Rmm~ 3. Jobberl Discounti s.-Definition of Jobber: The indurst ry
haeeb records its approval of the definitionl of a qualified w~hole-
saledisribtorto e oe wdseprincipal business is selling to the
retail distributor, carries a w-ell-srelected stock; of merch~aniisie, buys
in sulitable quantities, wFarlehouses a r~eserve stock ~for retailers within
a radius of economical distribution and convenience of service,
resells in properly units to the retailer as economically as possible,
assumes the credit riskz, and7 such other obtligaations as are incident
to the transportation, w~arehousing~ and distribution of the products
of the i ndust ry.
It shall bie unfair competition for any producer of barn equip-
ment, to allow a discount to a jobber or a national retail distr~ibutorl
of barn equipment greater than 30 and 20 percent fr~om consumner
price schedule.
RITE 4. C'OIRliign lritnt.--It shall be unrfair competition for any
produert of arn? equipment to distr~ibut~e barn equipmlent on coin-
signent to ny eale, jobber, or national retail distrib~utor.
RULE 5. Termsz.---As a safeguard against dliscrimuinat~ion beween
consumlers, deiller~s or jobber~s because of ulnequal sterns, the Banl
Equipment industry subscribes to thle principle of uniform termls of
sale. and credit.. These terms shall bec: Not to exceed 60 dlays, 2%"
in 10 days, 370 for cash wit~h orders, 6%0 interest on deferredc pay-
Any violation of these terms is unfair competiton.
Rnuzz 6. Fr~eight Rattes.--T~o avoid unfair competition among t~he
producers of barn equipment, which may develop thr~ough diff'eren-
tials on freight rates as a result of the widely sentteredi locations8 of
the manufacturing plants of the producers of barn equipment, the
barn equipment industry agrees that all price quotations to dealers
shall be made on the basis of f.o.b. factory or branches, with car-
load freight rates fromt factory to branch a~ddled by branch houses
east of Pittsburga, and such increase shall be reflected in, th~e pnice
schedules of the producers, aind to these prices there shall be added
less than carload freight rates to the point of destination.
On sales to jobbers or national retail distributors, aill goods shall
be sold f.o.b. factory withz freight allowed, not to exceed 754 per
100 pounds.
Ruzz 7. Plan)s anld S'ervice.--It shall be unfair competition for any
producer of barn equipment to furnish a prospective customer
with detailed plans or detailed blueprints of the proposed instal-
lations of barn equipment without making an adequuate charge for
same, but detailed blue prints of an installation are permitted free
after a job is sold. Free plan service before a sale shall be confined
strictly to furnishing only floor plans and stockr cross sections. All
other plans shall be charged for at cost plus a reasonable profit, as
set forth in Article 7.

It shall be considered unfair competition for an producers of
batrn equipment to provide free installation services or supervisory
installation service on barn equipment installations. In cases where
it is necessary for the seller of barn equipment to provide some super-
vrisory service, such service shall be charged for onl the basis of cost
plus a reasonable profit, as set forth. in Article '7.
RULE 8. "7# Trcde8n."-It shall be unfair competition for any pro-
ducer of barn equipment to accept trade-ins of barn equipment, or
any other type of equipment, materials, property, or supplies to apply
on the purchase of new barn equipment being sold. The ~a rn equip-
ment industry is agreed that the producer, dealer, or distributor of
barn equipment has no facilities for disposing of such~ items and
believes that the owner of such equipment can. himself dispose of it
to better advantage. This restriction is offered to eliminate a method
of competition which has in, the past proved unfair competition
between producers and resulted in destructiv-e price cutting.
RULE 9. Unfair Comparisons.--It shall be unfair competition for
anyr producer of barn equipment or any of his salesmen or agents to
carry with them barn equipment manufactured byJ another p~ro-
ducer, or to show or exhibit same in, thre sales rooms or sample rooms
or elsewhere, for the purpose of using same ifor comparison in sales
talks to the prospective purchaser.
RULE 10. Dj~istressed M~erchandis~e."--It shall be unfair comlpeti-
t~ion for any producer of barn eqluipmernt to quote prices be~low that
of producer's published price list on any used, rebuilt, r~eclarimedl, or
so-called distressed merchandise, including close-outs or discon-
tinued items, to any ~r~ospective purrchatser where there is competitive
bidding for the contract.
RUEio; 11. DieeiffBCni! On Ga~C7ran7ized Equpnwntll.;l--Qulotations on
galvanized barn equipment shall be not less than 20 percent higher
than quotations on similar painted barn equipment.
Rutnr 12. Pactents, Tradenarksnli anLd T~rade Names.-No person in
this industry shall imitate the tradetmar~ks or tradce names of a com-
petitor which results in deception to buyers and consumers, whlich
may be an. invasion of property rights of s1c'h complletitor. The
circulation of threats of suits for infringemetIl of patent or trazde-
mark among customers of a competitor, not made in good faith, for
the purpose of harassing and intimidating customers, is ain unfair
trade practice.
RULE 13. Product on, Control.----We agree that, because. exist~ing
productive capacity far exceeds the normal demalnd, for a period onf
twelve (12) months from the effective date of this Code, not t~o
increase our productive capacity except insofar as it. might be nor-
mally increased through the substitution of newp and improved equip-
ment for existing equipment or through maore efficient methods of
I~n view of thie foregaoing agreement we specifically askr th~at t~he
Admlinistrator establish a rule which will make it necessary for
any concern desiring to undertake t~he manufacture of barn equip-
ment to show a, necessity for such increase in productive capacity
or that the product he intends to manufacture will better serve the
public interest thlan. such products as are now available.


In submitting above trade practice rules for approval, the Barn
Equipment Association desires to be given the privilege of offering
for approval in the future such additional rules as experience may
prove desirable, or to amend or withdraw old rules which prove
Respectfully submit~tedl for the Barn ]Equpment Industry.
Executive Committ~ee of Barn Equipmnent Association:

Dated at ]Milwauktie, Wis., this (Executive Secretary)
..._, dayg of .,,~ 1933.

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