Code of fair competition for the card clothing industry as approved on January 23, 1934

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Material Information

Title:
Code of fair competition for the card clothing industry as approved on January 23, 1934
Portion of title:
Card clothing industry
Physical Description:
p. 357-367 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Textile industry -- United States   ( lcsh )
Carding   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1333-11."
General Note:
"Approved Code No. 222."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950824
oclc - 656585438
System ID:
AA00006657:00001

Full Text






NATIONAL RECOVERY ADMINISTRATION




C ODE OF FAIR C OMPETIT I ON




CARD CLOTHING INDUSTRY


UNIV. OF FL LIB.
Docu 4ENTS ''n.


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


Approved Code No. 222


Registry No. 1333-II1


AS APPROVED ON JANUARY 23, 1934


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1931
























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Comzmerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass. : 1801 Custom~house.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Com~merce Building.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, 1Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
Minneapolis, Minn. : 2;13 FEederal Building.
-New Orleans, Lta.: Room 22'5-A, Custombouse.
New Yorkr, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422, Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Buil.ding.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhnouse.
seattle, Wash.: 800 F'ederal O~ffice Building.
(II)











Approved Code No. 222


CODE: OF FIIAIR COMPETITION
FOR THE

CAR CLOTHING IN~DUJSTIRY

As Approvd on January 23, 1934




ORDER
APPROVING CODE OF FAlIR COMPETITION
FOR THE&

CARD CLOTHING INDUZSTRY
An application havingr been duly made pursuant to and inz full
compliance with the provisions of Tit~le I: of the N~ational Indusral
Recovery Act, approved June 16, 1933, for approval of a Code of
FLair Competition for the Card Clothing Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containinga findmgs with respect thereto, having been made and
directed to th President:
NOW, THEREFOIRE, on behalf of the P'resident of the U~nited
States, I, Hugh 8. Johlnson, Administrator for Industrial Recovery,
pursant to authority vcested in mre _by 1Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do thereby incorporate by reference said annexed
report and do find that said Code complies in all respects with thie
pertinent provisions and will promote the policy and purposes of said
Title of said Act; and do hereby order that said Code of Fair Com-
petition be and it is hereby approved.
Huoan S. JToHNSON,
B Administrlator for Industr~ial Recovery.
Approval recommended:
iar~coma Mmanr,
Division Administrator.
ASHITNGTON, I.C.,
Janluary 3, 1934.


35373"--313-110-84


(357)












T'he PRESIIEEP,
The White House.
SmR: This is a report on. the Code of Fair Competitionl for the
Card Clothing Indus~tryS of the Unlited' States, as r~evisedl after a
Public Hearing conducted in Washington on Novemnber 24, 1933, in
accordance with the provisions of the Natio~nal Industrial Recovery
Ac~t.
PROVISIONS IFOR HOURS ANID SAGIES

Factory employees are limited to 40 hours per week and 8 hours
per day; except during periods of emergency production when 48
hurs per week will be permitted in any 6 weeks of any 6-month
period, when time and a half will be paid for hours worked in ex-
cess of the above maximum.
Exceptionsl to thne above maxrimum hours apply to those engaged
in care and maintenance work, stock clerks and delivery employees
who are provided a tolerance of 10 percent over 40 hours in ~any 6
weeks of any 6-month period, and to watchmen who will be limited
to 56 hours and 6 days per week. Office employees are limited to 40
hours per w~eek on a monthly averagec, and 48 hours per wFeek. The
hour limitation will not apply to outside salesmen and those in an
executive or supervisory capacity receiving more than 35 dollars per
week.
The mlinimnum wage to all factory employees will be 40 cents per
hour, except to apprentice card setters who will receive not less than
80 percent of this minimum for the first 60 days of their employment,
and to those mentally- and physically handicapped. The mninimumn
for office employees will be 15 dollars per week.

CHILD LABOR

The minimum age in thre Industry will be 16 years, except in
hazardous occupations wT~Fhere the minimum will be 18 years.

Econrome~ EFFCT OF THE: CODE

With the reduction inl hours from approximately 50 per week to
the 40 hours per week: specified in the Code, the Industry estimates
that both employment and purchasing pow~er of employees will be!
increased approximately 20 percent with the return of normal busi-
ness in the textile industry.
Until the passage of the National I~ndustrial Recovery Act th~is
Industry had not been organized as a unit. The 10 members of the
I~ndust~ry belongs to the Card Clothing M~anufacturing A~ssociation,
the proponents of the Code.
(358)




359


While the total yearly sales are comnparatively small, the Industry
is an important one. Card clothing is the medium which in textile
machinery does the actual work of cardlingr or comnbing out the cot-
ton, wool, and other textile fibers, and also of raisingr the nap on
cl ot~h in the finishing process. As w~orkin gr tools, the delicate~ wire
teeth of card clothingr are subject to constant strain and wFea~r and
the material must be replaced at fr~equlent intervals.
The aggregate number of employTIees in the Industry in 1929 wals
500, while in 1932 they declined to a~pproximatetly 400O.
FTINDINGS

The Deputy Administrator in his final report to me on, said Code
havig found as herein set forth and on the basis of all the proc-ceed-
ings irn this matter;
I fid that:
(a) Said Code is well designed to promote the policies and pur-
poses of Ti~tle I of thre National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which. tenJd to dimrinish the! amount thereof, and will pro-
vide for the general welfare by p promoting the organization of indus-
try for the purpose of cooperative atctionl among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by alvoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agri-
cultural products through increasing purchasing power, by reducmec
and relieving unemployment, by improving stan ards of labor, anRB
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
plyes; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the? per-
tinent provisions of said TPitle of said A1~ct, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an industrial group truly representative of the aforesaid Indlustry;
and that said group imlposes no inequitable restrictions on atdmission
to membership therein.
(d) The Code is not designed to andl will not permit monopolies
or monopolistic practices.
(e) The Code Is not dlesigned to and w7ill not eliminate or oppr~ess
small enterprises and will not operate: to discriminate against thml..
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heardl prior to approval of said Code.
For these reasons, this Code hras been approved by me.
Respectfully,
Ho-~cu S. Jonxr~sor,
Admninistrartor.
JA~antaR 23, 1934.











CODE OF FAIR COMPETITION


FOR THE

CARD CLOTHING INDUSTRY


ARTICLE I PITRPOSES

To effectuate the policies of Title I of the National Industrial Re-
covery~ Act, the following provisions are submitted as a Code of Fair
Competition for th3e Card CIlothing Industry, and upon approval
by the President shall be the standardd of fair competition for this
Industry, and shall be binding upon every member thereof.
ARTICLE II -DEFINITIONS

The following terms are used herein. with the meanings set forth
below :
SECTION 1. "L Card Clothing Industry or the "L Industry "--the
manufacture for sale, and the sale by the manufacturer, of Card
Clothing, which consists of wire teeth inserted into a foundation
made of cotton, woolen, or linen cloth, felt, rubber, leather, or comb-
binationss thereof, used to cover or clothe parts of carding, napping,
or brushing manc-hines. Carding machines straighten and oth~erwnise
prepare textile or asbestos fibers for spinumg~r into yarn, etc. Nap-
ping or brushing machines raise the ends of fbers in manufactured
cloth.
SEC. 2. "' Employee "--anyrone engaged in. the Industry in any ca-
pacity, receiving compensation for his services, irrespective of the
nature or method of payment of such compensation.
SEC. 3. "L Employer anyone by whom any such employee is com-
pensated or employed.
Sljc. 4. Member of the Industry "--any~one engaged in the In1-
dustry as above defined, either as an employer or on. his own be~half.
SEC. 5. "LAssociation "'-the Card Clothing Manufactur~ers Associa-
tion.
SEc. 6. ]Effective date "--the fifth day after approval of this
Code by "the President.
S L. ." President ", "Act ", and "Administrator "-respectively,
the President of the United States, the National Industrial Recov-
ery AJct, and the Administrator of TLitle I: of said Act.
ARTICLE III- OURSS

SECTION 1. No employee, except as hereinafter provided, shall be
permitted to work in excslsi of forty (40) hours per week, or in
(3oo)




361


excess of eight ()hours per day; providled, however, that during
any period in whic a concentrated demand upon any division o
the Industry shall place an unusual and temporary burden for pro-
duct~ion upon its facilities, anl employee of such division may be per-
mitted to w~ork~ not more than forty-eight (48) hours per weeki in
any six. (6) weeks in any six (6) months' period. TCimet and one
half shall be paid for all hours woorkeed in excess of eight (8) hours
per day or forty (40) hours per week.
SEO. 2. There shall be a tolerance of tenl (10) percent additional
hours for employees engaged in the preparation, care, and mnainlte-
nance of plant, machinery, and production facilities, and for stocks
and shipping clerks, and delivery employees, provided that such. tol-
erance shalll not result in such employees working in excess of forty-
four (44) hours per week inr any six (6) weeks in any six (6) months'
period.
SEC. 3. The limitation as to hours of labor shall not apply to
commercial traveling salesmen, or to persons in a managerial, execu-
tive, or supervisory capacity who receive more than thirty-five (35)
dollars per week.
SEC. 4. INo employer shall work any accounting, clerical, service,
sales, or other office employee more than forty (40) hours per weeki
on a monthly average, nor more thanl forty-eight (48) hours in any
onet wpee~k.
SEC. 5. WTatchmen may be permitted to work not more than fiftyT-
sixe (56) hou prsi~n a one weekr, nlor more than six (6) days in any
SEC. 6. Nlro employee shall work or knowingly be! permitted to work
for a total number of hours in excess of the number of hours pre-
scribed for eachr week and day, whether employed by one or more
employers.
ARTICLE I`V- JAGES

SECTION 1. TIhe minimum wPage that shall be paid to any employee,
except as hereinafter provided, shall be not less than fort (40)
cents per hour.
SEC. 2. Alli employees mentioned in Section 4, Article III[, shall
be paid at the rate of not less than fifteen (15) dollars per wpeek;
provided, howfe~e~r, that office boys under eighteen (18) years ofE
age mpay be paid at the rate of not less than ebi ghty (80) percent of
th minunm wage stipulated inr this Section. 2; provided further,
that the number of office boys shall not exceedl fivPe (5) percent of
the total number of employees of anly employer, covered byT this sec-
tion; provided further, that where the total number of such em-
ployees is less than twenty (20), an employer shalll be entitled to at
least oneS1o 3.(1)j office boy.
Sea. 8 (a) person whose earning capacity is limited because of
age or physical or mental handicap may be employedl onl light w~orkl
at a wage of not le~ss than eighty (80) percent of t~he mninimuml pre-
scribed byr this Code, provided the Sta~te~ Authosrity or agpncy des~ig-
nated by the United States Department of Labor shall have issued
a certificate authorizing his employment on such basis. Each mem-
ber of the Industry shall file wisth the Code Authority a list of all
such persons employed by him





362


(b) Apprenttic~e card- se~tters, for thle first sixrty (60) days of their
empIloym ent, shall be paidl at a rate of not less than eighty (80) per-
cent of the minimum wage pI~-\rovide in Section 1, of this Article IV.
Thie total number of such ap~prentices shall not exceed five (5) per-
icelt, of the total nmbellrl of card cetters of any one employer; pro-
vilelt, however, that each employer shall be enltitledl to at least one
(1) such apoprentie.
SEc. 4. FIemale employees performing subs~tantiallyy the same w-ork
as male employees shall rercrive the same rate of pay as male em-
playees. Each mlem~ber of the Indu~lstry shall, within ninety (90)
days after the effet~rti ve date of this C~ode, file with the Code AC~uthority
a description of all oclc~upations in. which both men and women are
employed.
SEc. 5. This Article establishes minimum rates of pay regaardless
of whether the employee's compel~n action is based on a time rate,
piece-work performance, or otherwise.
SEc. 6. The hourly rate, base piece-work rate, or salary of all em-
ployees receiving more than the minimum rate or salary shall be
equitably readjusted (buzt in no Crase reduced) unless such read-
justment has already been made because of the operation of the
President's Rteemnploymenmt Agreemlent.
ARTICLE 7- ENERAL LABOR PROVISIONS

SECTION 1. No person under sixteen (16) years of age shall be
emp'loyed~ in the Industry and no onee under eighteen (18) years of
age~ shall be employed at operations or occupations hazardous in
nature or dectr~imental to health. In any State an employer shall
be deemed to have complied with this provision if he shall have on
file a certificate or permit duly issued by the Auth~ority in such
State emp~owered to Issue employment or age certificates or permits,
showing that the employee is of the required age. Each Imember
of the Industry shall submit to the Code Authority within thirtyr
(30) days after the effective date of this Code a list of hazardous
occupations.
SEc. 2. Employees shall have the right to organize and bargain
collectively through~l represenrtatives~. of their own choosing, and shall
be free from the inlter~fe~rence restraint, or coercionl of employers of
labor, or their agents, in the designation of such repr~es;entativresn or
in self-organization or in other concerted activities for the purpose
of co~lleccti\e bargaining or o-thler mutual aid or protection.
SEC. 3. NO employee and no one seeking ~employment shall be
r~-required as a condition. of employment to join anly company umion
or to refr~am from1 coming, orgamzaing, or assistmng a labor orgamiza-
tion of his own choosing.
Seec. 4. Employers shall comply wlith the ma x~imur m hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescriibed by the President.
Smc. 5. No prov-,~ ision in this Code shall sup.ersede any- State or
Federal law wrhichn imposes on. emplloy~ers more stringent require-
me~nts as to age of employees, wages, hours of work, or as to safety,
health, sanitary or ge~neral working co~nditionls, or insurance or fire
protection, than are imlposed by this Code.




363


SEC. 8. NO employer shall rc~lassiifyr employees or clutie~s of occu-
pations performed or engag re mn any otherl subhterlfuge for thle purpose
of defeating the pu~rposes or prod. cons of the Acet or of this Code.
SEC. 7. All employers shall p~ost copires of Ar~tic~les ITT, IV. and V
of this Code in conspicuousi places acc;ible to im1plOyeeS.
~SEc. 8. Every1 employer shall makile reasnablllle p~rovisions for the
safety and health of his employees at the place and duringr the hours
of their employment. Staw~lardls for safety andl heanlthl shall be sub-
mitted to the Code Authorityv by ealch miembei;r of the Indlustry wTithin
six (6) months after the etfective da~te of this Codle.
SEC. 9. NO provision in this Cod~e shall superised~e provisions as to
hours, wages, and conditions of emiployment which are established
for specific projects by competent govermental unlthority acting in
accord ance with law, or to terms of e m pIoymen!t which are est ablished~
by labor agreements now in force, where either thle wages are higher
or the hours of labor are short~etr, or both, than are those? set forth in
this Code.
Ann1cLE VT[-~nII-TAmiTINaro

To further effectuate the policies of the Act, a Code Authority is
hereby constituted:
SECTION 1. Org-anization and constitution of Cod~e Authority:
(a) The Code Authority shall consist of thtr~ee (3) individuals, or
such other number as may be appr~ovedi from time to t~irne by t~he
Administrator, to be selected as hereinafter set forth. The Admin-
istrator, in his discretion, may appoint one to three additional mem-
bers (without vote) to represent the AIdminist~rator or such groups,
or interests as mlay be agreed upon.
(b) The Code Authlorityv shall consist of three (3) individuals to
be elected in the following manner by t~he mcmber~s of the Indulstry
who have complied with the provilsions of Section 4 of this
Article VI:
One (1) by equal vote of each member of thet Industry so entitled
to vote.
Two (2) by weighted vote based on the numberl of card set~tinga
machines owned by each member of t~he Industry so entitled to vote,
each member to have one vote for each card setting mrac~hine owned
at the time of balloting.
Votes for electing members of the Code Author~ity, as above speci-
fled, may be cast in person or by proxy at a meeting assembled for
such purpose or may be east by letterl banllot.
(c) Each trade or industrial association directly or indlirectl ypar-
ticipating in the selection or activities of the Codle Authoriy shall:
(1) impose no inequitable restrictions on membership, and (2) sub-
mnit to the Administrator tr~ue copies of its articles of association, by-
laws, regulations, and any amendments when made th~ereto, together
with such other information as to memrberslip,, organization, andi ac-
tivities as the Administrator miay dleem nececssar~y to effectuate th
purposes of the Act.
(d) In order that the Code Authority shall at all times be truly
representative of the Industry andi in other respects comlply with
the provisions of the Act, the Administrator mlay provide such hear-




364


ings as he may deem proper; and thereafter if he shall find that th-e
Code Authority is not truly representative or does not in other re-
spects comply with the provisions of the Act, may require an appro-
priate modification in the method of selection of the Code ~Authority.
SEc. 2. The Code Authority shall have the following duties and
powers to the extent permitted by the Act; provided, however, that
if the Administrator shall determine that any action of a code au-
thority or any agency thereof is unfair or unJust or contrary to the
public interest, the Administrator mYay require that such action be
suspended for a period of not to exceed thiy (30) days to afford an
opportunity for investigation of the Imerits such action and further
consideration by such code authority or agency pending final action,
which shall be taken only upon approval by the Administrator:
(a) Present to the Administrator recommendations based on coni-
ditions in the Industry as they may develop from time to time which
will tend to effectuate the operation of the provisions of this Code
and the policy of the National Industrial Recovery Act. Such ree-
ommendations shall, upon approval by the President become opera-
tive as a part of this Code.
-(b) M/lake investigations as to the functioning and o~bserva~nce .of
any provisions of this Code, at its own, instance or on complaint by.
any person affected.
(c) Investigate and inform the Atdministrator on behalf of the
Industry as to the importation of competitive articles into the United
States in substantial quantities or in increasing ratio to domestic
production on such terms or under such conditions as to render inef-
fective or seriously to endanger the maintenance of thlis Code, and
as an agency for making complaint to the President on behalf of the
Industry, under the provisions of the Act, with respect thlere~to.
(d) Hear and attempt to adjust complaints in accordance with
law; approve standard forms of contracts which shall be subject to
the approval of the Administrator; consider proposals for amend-
ments to this Code and make recommendations to the A-dministrator
thereon.
(e) Mak-e rules and regulations necessary for the administration
of this Code, subject to the right of any affected person to appeal to
the Administrator.
SEC. 3. In Order to provide data necessary for thne administration
of this Code, all members of the Industry shall furnish to the Code
Authority such information or reports as may be required, subject
to the approval of the Administrator. Such information as mayT be
submitted by a member shall not be revealed to anyone not a member
of the Code Authority but shall at all times be available to the
Administrator.
SEC. 4. Members of the Industry shall be entitled to participate in,
and share the benefits of the activities of the Code APuthorityT and to
participate in the selection. of the members thereof by assenting to
and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be deter-
mined by the Code ALSuthority, subject to review by the Administra-
tor, on the basis of volume of business and/or such other factors as
may be deemed equitable to be taken into consideration.





365


ARTICLE VlII-TRADE PRACTICES

The following practice constitute unfair nwtchods of competition
and are prohibited~:
SECTION 1. False Miarking or ]Brandingr: False marking or bralnd-l
ing of any product, of the Ibndustry which has thle tendency to mlis-
lead or deceive customers or prosp'ectivce customers,, whether as to
the. grade, quality, quantity, substaInce, cha~ractcr, nature, origin, size,
finish, or1 preparation of any pr~ouclct of th~e Industry, or othecrwise.
rSEC. 2. fl~`Srepresentati on or False or MfislendingS Advertising:
Making, causing, or knowingly permlittingr to be mande or p~ublish~ed,
any false, materially innecurrate, or deceptive statement by way of
adve~rtisement or oth~erwise, whether concerning the grade, quality,
quantity, substance, character, nature, origin, size, finish, or pre~pa-
ration of any product of the Industry, or the cItreit terms, values,
policies, or services of any member of the Industry, or otherw-ise,
having the tendency or capacity to mislead or deceive customers or
prospective customers.
SEO. 3. COmmercial Bribe~ry: Giving, permitting to be given, or
directly offering to giv8e, anything of value for the purpose of influ-
encing or rewarding the action of any employee, agent, or represepnta-
tive olf another in relation to the business of thne employer of such
employee, the principal of such agent or the represented party, with-
out thle knowledge of such employer, principal or party; provided,
however, that this shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as hlerein-
above defined.
SEC. 4. Interference with Contractua~l RIelations: IAfnliciously~ in-
duc~ing or attempting to induce. the breach of an existing oral or
written contract between a competitor and his custo~mer or source of
supply, or interfering with or obstructing the performance of any
such contractual duties or services.
SEc. r5. Secret ~Rebates: Secretly paying or allowing rebates, re-
funds, commissions, credits, or unearlned discounts, whether in the
form of money or otherwise, or the secret extensionl to certain pur-
chasers of special se~rvicesi or p~rivilPrege not extendled to all pulrchaser~s
on like terms and conditions. The giving of extenlded time beyond~
the regular established net payment period filed' with hlis prices by
eac member of the Industry is to be construed as unerltrlned discoulnt,
unless interest is charged at the rate. of six (6i) percent per anrrunu.
SEc. 6. Giving of Prizes, Premiulms, or Gifts: Giving or offerings
to g1ive prizes, premliumsr, or gifts in connection with the sale of pl'ro-
ucts of the Industry~ or as an indulcem~ent thereto, by anly scheme
which involves lottery, misrepresentation, or frautl.
SEC. 7. Defamation: Defamingn competitors by falsely imnputing to
them dishonorable conduct, inability to performi contracts, ques~tion-
able credit. stand~ing,a or by oter false representations or by the false
disparagement of t.he grade or quality of their gnoods.
SEC. 8. Threats of LJitigation: Purblis~hinfi or circullating threats
of suits for infringement of patents or trade marks or of any other
legal proceedings not in good faith, w~ith the tendtency or effect of
harassing competitors or intimidating their customers.




366


SEc. 9. Espionage of Competitors: Securing confidential informa-
tion concerning the business of a competitor by a false or misleading
statement or repres~enta~tionl, by a false impersonation of one in
authority, by bribery, or bly any other unfair method.
Splc. 10. Selling or offering to sell at variance from filed price
lists: Selling or offering to sell at prices different from prices filed
with th~e Code Authority as hereinafter provided in Section 11,
Article VII.
SEc. 11. Publication. of Prices: Failing to file with the Code
Authority within ten (10) days after thle effective date of this Code
a complete schedule of prices and terms of sale, with sufficient copies
for all members of the Industry. The schedule of prices filed by a
member of the Industryr shall not be changed except by filing, as
above provided, a new complete schedule of prices and terms of sale,
which shall become effective five (5) days after the date on which
such new price schedule shall have been so filed. During the abo-ve
five (5) day period, any competitor shall have the privilege of filing
with the Code Authority, as above provided, new prices to become
effective on the samae date. The Code Authority shall cause a copy
of all price lists filed to be promptly sent to all members of thte
Industry. For a period of ten (10) days beginning with. the date on
which the new prices become effective, the member of the Industry
may accept orders upon quotations which were outstanding at the
time of filing such prices.
SEC. 12. Selling Below Cost: Selling or offering to sell products
of the Industry below individual's cost, except
(a) Tlo meet competition of another member's lower cost, pro-
vided such competition, is not instigated directly or indirectly by the
member desiring to meet such~ competition, and
(b) To meet competition in violation of this rule concerning which
he has made complaint to the Code Authority or any authorized
agency thereof, but only pending action thereon.
Cost for the purpose of this Section 12 shall be determined by a
method of cost accounting subject to the approval of the A-dminis-
trator to be adopted by the Code Authority within sixty (60) days
after the effective date of this Code and to be used by all members
of the Industry in determining cost.
SECTION 13. Guarantees against price changes: Making or giving,
or offering to make or give guarantees or protection mn any form
against changes in prices beyond a period of ~fifteen (15) days.
ARTICLE VTIII MoorrICATIONJ

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in, accordance with the
provisions of Section 10 (b) of the Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued
under Title I of said Act and specifically, but without limnitatioon,
to the right of the President to cancel or modify his approval o
this Code or any conditions imposed by him upon his approval
thereof.
SEc. 2. This Code, except as to provisions required by the Act,
may be modified or supplemented on the basis of experience or





367


changes in circums~tances, such modifka~tio~n to b~e based upon~r apli
cation by the Code Authority to the Administ~trato with such note
of hearings as he shall spec~ify, andl to hrInclclle effecrtive o~n approvl\t
by thie President.

ARTICLE IX4--31NOPOLTEs, E~rc.

No provision of this Code shall be so applliced as to permit mosoll?-
olies or m1onopohistle practices, or to elmullnate opplres~s or discrimi-
nate against smllnl enterprises.

ARTICLE X-PRICE INCHREA-SE

Whereas the policy of thle A4ct to increm~e redn pur~chlasing power
will be made impossible of consummantion if prices of goods and
services increase as rapidly as wa~ges, it is rlcognized~ that price mn-
creases should be delayed and that, wFFhen made, the samle should, so
far as reasonable possible, be limited to netuanl increases in the
sellers' costs.

AnnICLE XI--EFFECTI\E ]DATE

This Code shall become effec~tive on thne fifth day after its approval
by the President and shall be bindting upon. ev-ery member of th~e
Industry.
Ap~provedl Code No,. f222.
Registry NIo. 1333-11.





UNIVERSITY OF FLORIDA


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