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For sale by the Superintendent of Documents. W'ashington, D.C. - Frice 5 cents Approved Code No. 84-Supplement No. 22 Registry No. 1114--22 i kht~ikAT: RECOVERY ADMINISTRATION I / (1 UIVEI OSF FL_ L'T. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON :1934 SUPPLE MENTA3RY CODE: OF FAIR COMPETITION FOR THE '"DRAPERY AND CARPET HARDWARE MANUFACTURING INDUSTRY (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and M~etal Coating Industry) AS APPROVED ON MIAY 9, 1934 i. This publication is for sale by the Superintendent of Documents, Government Printing Offce, Washington, D.C., and by district offices of the Bureau of Foreign and Domestle Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingrham, Ala.: 257 Federal Building. Boston, RIkss.: 18j01 Custombouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, Ill.: Suite 170i6, 201 North WI~ells Street. Cleveland, Ohio: Chamber of Commerce. Dallas. Tex.; Chamber of Commerce Building. Detroit, MIichl.: 801 Firsyt National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indlianapolis, Ind.: Chamber of Commerce Building. Jacksonville~. Fla.: Chamiber of Commerce Building. Kannsas Cityl, 1\o.: 1028 Baltimore Av~enue. Los Angeles, Callif.: 1163 South Broadway. Louisville, Kyi.: 408 Fedleral Building. n~Iemphis,; Tenn.: 229 Federal Building. Alinneapolis, hlinn.: 213 Federal Building. New~ Orlea~ns. La.: Room 225-A, Custombo~use. New York, N.Y. : 7i34 Customhouse. Nor~folk, Van.: 4106 East Plume Street. Philalelp;hin, Pa.: 4272 Commercial Trust Building. Pittsburgh. Pa.: Chamber of Commerce Building. Portlanld. Oreg.: 215 New Post Offic~e Building. St. Louis, nlo.: 506 Olive Street. San Francisco, Calif.: 310 Customhouse. Seattle, Wasuh.: 809 Federal Offc~e Building. Approved Ccde No. 84---Supplement No. 22 SUPPLElMENTARY CODE OF ]FAZIR COMPETITION FOR THE[ DRAPERY CAND CARPET H[AIRDWARE MAN UFACTURING INDUSTRY As Approved on May 9, 1934 ORDER ASPRrnovxNo SUPPLEMENTARY CODE OF FAIR COMPETITION FOR TH~E DRAPERY AlND CARPET HARDWABRE P6ANUFACTURING INDUSTRY A DIVISION OF THE FAB~RICA~TED 31ETALr PRODUCTS 31ANUFACLTURINGI AND META~L FINISHING AND METAL, COA~TING INDUSTRY An application having been duly mnad~e pursuant to and in full compliance with the provisions of TIitle I of the National Induxstrial Recovery Act, approved June 16, 1933, and in accordance with the/ provisions of Section I of Article VI of the B1asic Code for thie F~ab- ricated M~et~al Products MIanufacturin~g and M~etal Finishing and Metal Coating Industry, approved November 2, 19333, for approval of a Supplementary Code of Fair Comnpetition for the Dr1apery and Carpet Har~dware M~anufacturinng Industry, and hearing having been dully held thereon; and the annexed report on said Supplem~entary Code, containing findings with respect th~ereto, having been made and directed to the President: NOW,. THEREFORE, on behalf of the President, of the United States, I, Hugrh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in mie by Executive Orders of the Presi- dtent, including Execut~ive Order No. 654~3-A~, dated D~ecember 30, 1933, and otherwise; do hereby incorporate by reference said an- nexed report and do find that said Supplementary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplementary Code of Fiair Competition be and .it is hereby approved; provided, however, th~at the provisions of Article V, Section 1, insofar as they prescribe a waiting period between the filing with the Code Authority (or such agency as may be designated in the Code) and th~e effective date of price Ijists, as originally filed and 'or revised price lists or revisedl terms anld condlitiojns of sale, be and they hereby are stayed pending my further Order. HUGH-r S. JOHNSONu, Adm7lini~st'lErato for Inducstrial: Recover~y. Approval Recommended : A. R. Gr~aNcr, Division A~dm~linfCistratr W~ASHINGTON, D.C. 57801" 544-49 -34 (1) REPORT TO THE PRESIDENT The PRESIDENT, The Wthite HTouse. SIR: This is a report on the Suapplement~ary Code of Fair Compe- tition for the Drapery And Carpet Hardware M~anufacturing Indus- try, a division of the Fabricated Mietal Product~s Mlanufacturing and Metal Finishing and M~etal Coating Industry, the hearing having been conducted thereon in Washington, D.C., Ja~nuary 19, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Drapery And Carpet Hardware M~anufacturing Industry, being truly representative of this division of the Fabricated Metal Pmdrduts Ma~nulfacturinngnd Meptal Fi;nishing and M~etal Coating Industry, has elected to avail itself of the option of submiitting a Supplementary Code of Fair Competition, as provided for in Section 1 of Article VI: of the Basic Code, for the Febricatedl Metal Products Mla~n ufacturing andi Metal Finishing and Mletal Coatings Industry approved by you on the second day of November, 1933. Risannd OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Supple- mientary Code. Article III. This Industry is a division of the Fatbricated Metal Products Mlanufacturing and MIetal Finishing and M~etal Coating Industry and th~e labor provisions of its Basic Code, as approved November 2, 1933, are the labor provisions of this Supplementary C~ode. Article IV establishes a Supplementary Codle Authority consisting of seven (7) me~mber~s to be elected by the members of the Industry at a, meeting called by t~he Temporary Supplementary Code Commit- t~ee, and gives the Adlministrator the authority to appoint one addi- tionail member without~ vote and provides machinery for obtaining ELat-iSticS and the administration of the Supplementary Code. Article: V provides for methods of setting up and revising price lists. Article VI provides for determining the lowest reasonable cost of thle products of this Indlustry. Article VII sets forth t~he unfair trade practices of this Supple- mentary Codle which has been especially designed to offset unfair comp7Ietition in this division of the Industry. Article V'III p~rovides against monopolies and monopolistic practices. Article IX contains the mlandlatory provisions cont~ainedl in See- tion 10 (b) andi also provides for the submission of proposed amend- mlents to t~he Supplementary Code. Article X recognizes tha~t price increases be limited to actual addtitionlal increases in thle seller's costs. Article XiI states thle effective dlate of this Suppltementary Code. FINDINGS The Deputy Administrator in his ~final report to me on said SuIp- plementary Codle having found as herein, set forth ande on. the basis of all the proceedings in this matter: I find that: (a) Said Supplementary Code is well designed to promote the policies andi purposes of Title I of the National Industrial ]Recoveryr .Act., including removal of obstructions to the free flow of interstate aznd for~eigan commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zat~ion of industry for the purpose of cooperative action among the trande groups, by :indlucing and maintaining united action of labor and management under adequate governmental sanctions and supervision, b3y eliminating unfair competitive practices, by pro- mot~ing the fullest possible utilization of the present productive ca- pacityS of industries, by avoiding undue restrictions of production (except as may be temporarily required), by increasing the con- sumption of industrial and agricultural products through increasing pu'rc~hasingi power, by reducing andt relieving unemployment, by im- proving standardsl of labor, and by otherwise rehabilitating industry. (b) Satidl Indust~ry normally employs not more than 50,000 em- poees; and i~s not classified by me as a major industry. (c~) The Supplementary Code as approved complies in all re- sp~ects with the pertinent provisions of said Title: of said Act, in- cludinlg without limitation 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 aIforesaid Industry; and that said association imposes no inequi- table restrictions on admission to membership therein. (d) The Supplelmentary Code is not designed to and will not permit mlonopolies or monopolistic practices. (e) Thle Supplementary Code is not designed to and will not elimninazte or oppress small enterprises and will not operate to dis- crimninate against them. (f) Those engaged in other steps of thie economic process have not been deprived of the right to be heard prior to approval of said Sup~plemientary Code. For these reasons, therefore, I have approved this Supplementary Codle. Respectfull~y, HUan S. JoHNSON, Administrators. M\aY 9, 1934. SUPPLEMCIENTARY CODE OF FAIR COMPETITION FOR THE DRAPERY AND CARPET HARDWARE MANUFAC- TURING INDUSTRY a DIVISION OF THE FABRICATED METAL PRODUCTS MANUJFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY ARTICLE I PURPOSES To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Drapery and Carpet Hardare anufctuing ndusry.Pursuant to Article VI of the Basic Code of Fair Comlpet~itionfothFbrcedMtlPdut Manufacturing and M~etal Finishing and M~etal Coating Industry approved by the President of the United States on the 2d day of November, 1933, the provisions of this Supplementary Code shall be the standard of fair competition for such I~ndustry and shall be binding upon every member thereof. ARTICLE II-DEFINITIONS SECTION 1. The terms "' President ", Act and "L Administrator ", as used herein, shall mean the President of the Unit~ed States, the National Industrial Recovery Act, and the Administrator for Indus- trial Recovery under said Act. SCECTION 2. The termn "L Industry and/,or "' Drapery and Carpet Hardware Industry means and includes the business of manufac- turing Drapery and,/or Carpet Hardware. SECTION 3. "~ Drapery and C'arpet Hardware means and includes: (a) Draperyr Hardware: All woodl, metal or glass devices, or devices made of any other mlater~ial, ordinarily used to support dra- peries at windows, dloorwFays or like spaces. These: devices are Rods or Tubes, either of fixed length or adjustable, either stationary or detachable from Branckets fastened to the wall at either end of the Rod or Tube; or supported from one end only, so that they can swing away' fr~om t~he window or door. Also the Hooks or BIrackets to support. such Rods or Arms, and the Rings, Hooks, Pins and Special Pins used to attach the: draperies to the Rods or Arms. Also the Pulleys, Car~riers, Brackets, Tassels, and other devices used in mioving t~he draperies to and fro, so as t~o either cover or disclose the w~indow,\ or d~oor. A~lso such metal or other fixtures generally known in the trade as Holdbacks, used to tie back the drapery fabrics in onl arched arrangement. Also those special forms of Hard-ware used by decorators and housewives to obtain particular effects in the arrn;aingeent of draperies and recognized by them under the classification of Dranpery~ Hardware. (b) Carpet Hardware: All metal and wood pieces or pieces made of any other material, or strips used to cover or protect from wear the edges, seams or joints of linoleumn or other floor coverings. Where linoleum or like material is used as a surface on desks or display tables, the metal and wood strips and corners used to pro- vide firm edges, are included in. the term Cnrp~et H~ardware". The term also includes t~he metal plates or nosingrs, or plates or nosings of any other mlater~ial, generally used on the treads of stair cases. Also stair rods and fasteners, rug; fasteners and carpet pins and sockets. SECTION -1. The term product means and includes Drapery and,or Clarpet Ha~rdware as hereinl defined~. SECTION 5. The term member of the Industry' means and includes any person, firm, corporation or associntion operating a plant. or pla.nts manulfacturirin Drapery and/or Carpet Hardware, whether for its own use or for sale. SECTION 6. The term member of the S!upplementaryr Code " means any member of t~he Industryr who shall have assented to thre provisions of this Suppnle~menn~tary C~ode by instrulment. in wr~itingr duly filed with the Secretary. SECTION 7I. The term employee as used herein includes anyone enganged in the Indiust~ry in anyT capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation. SECTION 8. The term "' em~ploy\er as used herein includes anyone by whom any such employee is compensated or employed. SECTION 9. The term "' Basic Code as used herein is defined to mean the Basic Cod~e of Ftiair Competition for the F'abricated Metal Produlcts Manrufacturing and 1Metal Finishing anrd Mtal Coating Industry as approved by the President onl thme 2nd da~y of November, 1933. SECTION 10. The terma Supplementary Code Aluthority as used herein is defined to mean the agency which is to administer this Supplementary~ Code as hereinafter provided. SECTION 11. The term Bureau means Drapery and Carpet Hardware Mlanufacturers' Bureau, or its sulccessor. SECTION 12. The terma Executive Committee means Executive Committee of Drapery and Carpet Hardware Manufacturers' Burea u. SECTION 13. The term Secretary means Secretary of D~raperyr and Carpet 3Harrdware Mianufacturers' Bureau, or such other im~- partial and confidential agency as the Supplementary Code Authority may designate. ARTICLE III--EMPLOYM\ENT PROVISIONS T-his Indust~ry is a division of the Fabricated Metal Products Manufacturing and M~etal Finishing and M~etal Coatilng Indlustry and t~he wage, hour and labor provisions ini A~rticle III: of its bas~ic. code as approved by the Presidenlt November 2, 1933, includingg Section 1 of said Article III by which the pr~ovilsons of Subsectionls (1), (2)) and (3) of Section 1 (a) of Title I o fthe Act are mnade conditions of this Clode, are specificallyr incorp~oratedl herein and mIade a part hereof as the wage, hour and labor provisions of this Supplementary Code. AnnICEr IV--ORGANIZATION AND An~INInLanABrlo SECTION 1. During the period not to exceed sixty (60) days fol- lowing the effective date, the Executikve Committee shall constitute a Temporary Supplementary Code Aut~hority, who shall have all the powers and duties of the Supplemnentary Code Authority, herein set forth, until thle Supplemlentary Code Authorityv is elected. There shall be constituted within the sixty-day period a Supplementary Code Authority consisting of seven (7~) members to be elected by the members of the Industry, at a meeting called by the temporary Supplementary Clode Authority, upon ten day~s' notice sent by regis- teredl mail to all members of the Industry whose names can be ascer~tainled after diligent search., who may vote either in person or by pr~oxy. The members of thle Supplemlentary~ Code Authority first elected shall serve until the following annual meeting of the Bureau and until their successors ar~e elected, and thereafter, mem- bers of the Supp~lementary7. Code Authority shall be elected imumedi- ately after each annual meeting of the Bureau to serve until their successors are elected. Notice of each election shall be sent in the manner above provided. The membership of the Supplemnentary Code Authority shall be miade up as follows: (a) Two (2) members who shall be members of the Industry elected by a majority vote of the members of the Industry present in pIer~son or represented by proxy, each member to have one vote; (b) One (1) member wno is not a member of the Bureau elected by a majority vote. of the non-members of t~he Bureau, present in person or represented- by proxy, each members to have one vote; (c) Four (4) members wht~o shall be members of the Bureau elected by fifty-one percent. vote of members of the Bureau, present. in person or represented by proxy, weighted on the basis of one vote for each member and additional votes equal to the percentage which each such member's dollar volume bears t~o the total dollar volume of the mem- bers of the Bureau in the previous calendar year, reported to the Secret ry. Provided, however, That. no one member miay have more than 3.3 such votes and prov~ided,! further, that. the election shall be so conducted that no memnber of the Bureau shall ascertain the vol- ume of any other member - (d) A vancancy in the membership of the Supplementary Code Authority may be filled by majority vote of t~he remaining members of thie Supplementary Codle Au~thority; (e) In addition to the above the Administrator may appoint one r~epresentative without vote and without expense to the Industry unless th~e Supp~le~entary C'ode Authority agrees to pay such ex- penses, to serve on saidl Supplemientary Code Auithority in the administration of this Supplemnentary Code. Said representative shall be given reasonable notice of all meetings of thle Supplementary CoeatirSECTION 2. A~ny Association, Institute and *'or Bureau directly or indirectly par'ticipating in the selection or activities of the: Supple- mnentar~y Code Author~itv shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its Art~icles of Association, By-Law~s. Regulationsi andc any amendm- mentss when made thereto, together w~ith such other information as to membership, organization, and activities as thne Admlinistraitoro may deem necessary to, effectuate the Imrposes of the Act. SECTION 3. In order that the Sup~plementary Code Author~ity shall, at all t.imles, be truly~ repl~r-esentati.e of the Indtustry and in other respects comply with the provisions of the Act, the Administraltor mlay prescribe such Hear~ings as he may de~em proper; and, there- after, if he shall findl that the Supplemlenta ry Codle Authority is not truly representative ;or does not in other respects comply with. the provisions of the Act., mnay require nol appropriate modificationi in the method of selection of t~he Supplenentar~y C~ode Autority. SECTION 4. The Supprlemnentary Code .Authorityr is he~eb~y consti- tuted the agency to administer th)e provisions of thlis Supplementary Code and to collect and distribute all statistical reports of the Indus- try. With a view t~o k-eeping t~he President inlformned as to the obsery- ance or nonobservance of thisc Suplenl m entary Codep said~ agency Sfhall collect through the Secr~etary such statistics as called for by the President and/or th~e Administrator and send them in, such form as the President and 'or t~he Admiinistrator may require to thEe Fabri- cated Mlet~al 'Products Fedelration, or successor organization, as the agaency administering said Basic. Code. All individual reports shall be treated as confidential by thie Secr~efnry and shall not be disclosed to a~ny member of the Industry or any other party except where neces- sary in thle enlforcemlent of this Code and except to such grovernmlental agencies as may be directed by the Administr~ator. SECTION 5. The Supplemlentaryy -Code Authority as such agency. shall also from ~timle to time furnish to th Basic Code At~uthority, designated in said Basic Code, such information as may be req-uired to be furnished undler the terms of said Basic Codle. SECTION 6j. Thle Supplemlentary? Code Authority shall have power from time to time to require each member of the ZIndustry. to furlnish to the SCecretary such information as is required by the Administra- tor, concerning the production, shipments, sales, andl orders of such members andi the hours of Inlbor, rates of pay and other conditions of emnploymlent at th~e plant or plants of such member and- such other information as the Supplem~entary Code Authority shall dteem neces- sar~y or proper in order to effectuante the purposes of this Code and, t~he policy of the Alct. All1 individual reports shall be treated as confidential by thle Secretary and shall not be disclosed to any mem- ber of t~he Industry or any other party except where necessary in the enforcement. of this Code and except to suich govecrnmnental agectn- ciesi as may be directed by the Administrator. SECTION Ti. The Supplelementary Code Author~ity may require that any suchl information be furnished periodically at such1 times as it shall specify, and mnay require that any or all information furnished be swiorn to or otherwise certified or authenticated, as it shall pre- scribe. Failure of any member of the Industry promp tly to furnish to the S$ecretary information re rdby the said Suppiemnentary Code Authtority and sulbSt~antially in the form prescribedl by it shall constitute a violation of the Code. SECTION 8. Any or all information furnished to the Secretary by any corporate member of the Industry specifically assenting hereto pursuant to the provisions of this Code shall be subject to verifica- tion by an examination of the pertinent books, accounts and records of such member by any accountant or accountants or other person or persons dlesignated by the Supplementary Code Authority and shall be so checked for such purpose if the Supplementary Code Authority shall require it. The cost of each such examination shall be treated as an expense of administering t~he Code. SECTION 9. All members of the Industry are subject to the juris- diction of the Supplementary Code Authorit~y; shall be entitled to participate in and share the benefits of the Supplementary Code Authority; shall be entitled to vote in the selection of the Supple- mentnry Code Authority as provided in Sect~ion 1 of this Article; and shall pay to the Secretary as the agent of the Supplementary Code Authlority their reasonable share of the expenses of the Ad- min~ijtration of this Supplementray Cod~eoe, such reasobl share to be determined by the Supplementary Cd uhrtsbett review by the Administrator on the basis of volume of business and,'or such other factors as may be deemed equitable by the Supple- mentary Code Authority. SECTION 10. Nothinlg contained in this Supplementary Code shall be deemed to constitute the member-s of the Supplementary Code Authority~ partners for any purpose, wFhatsoever. Nor shall any member of the Supplemnentary; Code Aut~hority be liable in any manner to anyone for any act of any other member, offcer, agent oremploee of the Supplementary~ Code Authorit~y. Nor shall any membr o th Supleentry ode Auithority, exercising reason- able diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Code, except for his own wilful misfeasance or non-feasance. SECTION 11. The Supplementary Code Authority shall without any limitation on the foregoing have the following further general powers and duties subject to such rules and regulations as the Administrator may prescribe: (a) To insure the execution of the provisions of this Supple- mentary Code and provide for the compliance of the Industry with the provisions of the Act; (b~) To adlopt by-laws and rules and regulations for its procedure and for the administration of the Supplementary Code; (c) To obtain from m-iembers of the Industry such information and reports as are required for the administration of the Supple- mentary Code. In addition to information required t~o be submitted to the Supplementazry Code Aluthority, all or any of the persons subject to this Supplementary Code shall furnish such statistical information as the Administrator may deem necessary for the purposes recitedl in section 3 (a) of the Act to such Federal and State agencies as the Administrator may designate. Provided that nothing in this *Supplementary Code shall relieve any member of the Industry of any existinga obligations to furnish reports to any gov- ernment agency; (d) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supple- mentary Clode and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof ; (e) To make recommnendations to the Administrator for the co- ordination of t~he administration of this Supplemlent~aryI Codle with such other Codes, if any, as may be relat.edl to t~he Induzstry; (f) To secure from members of the Industry an equitable and proportionate payment of the reasonable expenses of masintaining the Supplementury Codle Authority and its activities; (gr) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those members of the IndustryS who have assented to, andl a re compnlyingr with, this Supplementary Code; (h) To recommends to the Admlninistr~ator fur~ther fair tradste prac- tice provisions t~o govern members of the Industry in their relations with each other or with other Indust~ries and to recommend to the Administrator m~easures for industrial planning, including statbili- zation of emiploymlent; (i) To est~ablishl an impartial agency for the registration of origi- nal designs, patterns or forms, andl to promiulgate and from time to time amend rules and regulations for the registration thiereof, all subject to the approval of the Adiministrator. (j) To set up dlefinitionsi for the various classes of customers of the Industry. WVhen such definitions are approved by the Adminis- trator, quotations, prices, discount, credit terms, allowances or other conditions of sale shall be madle on the basis of and with reference to such definitions, and deviations th~erefrom shall constitute unfair methods of competition and shall be deemed to be a violation of. this Code. SECTION 1L2. If the Administratori believes thant any action of the Supplemlentary C~ode Authority or any agency thereof is unfair or unjust or c~ontrary to the public interest, the A~dministlatrato may require that such~ action be suspended to afford an opportunity for investigation of the merits of such action. Further action by such Supplemlentary Code Authority or agency~ r~egarding the. matter complained ofr may be taken if approved by the Admninistrator but shall not be taken if disapp~roved by' the A~dministra~ttor within thirty days of notice to him of intention to proceed withl such action. ARTICLE YT-PRICE LIEss SEcTIrON 1. The Su~pplementary~ C'ode Aut hority may require each member of the Indlustryu who mnlluflc'turles and sells any plroluct, of the Industry w~ithini ten (10) dlays a.fter. the effective date of this Supplementary Code to file with t'he Secretary and publish duplicate originals of all price lists, catalogues,! descr~iptive price lists andl literature showing or pertaininga to~ prices and other. conditions of sale, special discounts for various classes of customers or for quan- tity, together with any trade policy affecting the net price of the merchandise, in such numbers as may~ be r~equestedl by the Secretary for distribution to the members of the Supplementary Code, anid in such form as the Supplementary Code Authority may direct, showPing in separate schedules such member's net price to, or d-iscount from list allowed to such of the following classes of pilrchlasers as said member sells or quotes: chain-stores, catalogue or mail-order houses, jobbers, retailers and consumers. Said price list shall be made available to all interested parties. Provided, however, that nothing in this paragraph contained shall compel a, member of the Industry to file a price list or price lists on any product of the Industry manufactured and used by such manufacturer for the purpose of making up other products not products of the Industry, or for export as the term is defined in Article VII, Paragraph A, o~f this Supplementary Code. The Secretary shall immediately send copies thereof to all other members of the Supplementary Code and shall make said price lists available to all interested parties. Provided further that prices to chain-stores need not be filed but any member of the Industry may do so if he desires. None of the price data so filed as herein provided shall be changed except by the filingo with the Secretary, by such member of the I~ndustry new price data setting forth such change or changes which shall become effective and be published on the effective date specified by such member of the Industry which shall be ten (10) days after the date on which such new price data shall have been filed with the Secretary, and copies thereof with notice of the effective date specified shall be immediately sent to all members of the Supplementary Code, who thereupon may file if they so desire, to become effective upon the date when the revised price data first filed shall go into effect, or at a subsequent specified date, revisions of their price data, establishing prices not more favorable t~o the purchaser than those established in the revised price data first filed.l SECTION 2. No member of the Industry shall make any sale or quotation of any product of t~he Industry at prices or on conditions more favorable to the purchaser thereof than those specified in the price data so filed by such~ member in accordance with the provi- sions of this Supplementary Code and in effect at the time of such sale; nor shall any member of the Industry make any contract of sale of any product of the Industry at prices or on conditions more favorable to the purchaser thereof than those specified in theprc data so filed as aforesaid and in effect at the tith~e of the makn of such contract of sale. For all purposes of this Article a delivery of any product made pursuant to a contract of sale shall be regarded as a sale thereof made at the time of the making of such contract. Aw~rrCLE VI--SALES BELOW REAsoNABLE COST Notwithstandina any other provision s of this Sulnpmplmntar l Code, when the Supplementary Code Authority determines that an emer- gency exists in this Industry and that the cause thereof is destruc- t~ive prie-culttijng such as to render ineffective or seriously endanger the maintenance of the provisions of this Supplementary Code, the Supplementary Code Authority may cause to be determined the lowest reasonable cost of the products of this Industry, such deter- mination to be subject to such notice and hearings as the Administra- tor may require. The Administrator may approve, disapprove, or modify the determination. Thereafter, duri-ng the period of the a See paragraph 2 of order approving this Code. emergency, it shall be an unfair trade practice for any member of the Industry to sell or offer to sell any products of the Industry for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale t-hat the buyer will pay less therefore than such lowest reasonable cost of such products. Wh7en it appears that conditions have changed, the Supplementary Code Author~ity, upon its own initiative or upon the request of any interested party, shall cause the determination to be review19ed. ARTICLE VI'I-UNFAIR TRA-DE PRACTICES SECTION 1. For all purposes of this Supplement~ary Code the fol- lowving described acts shall constitute unfair practices. Such. unfair practices shall be deemed to be unfair methods o-f competition inr commerce, within the meaning of the Federal T~rade C~omrmission Act,_ as almended, and the ulsing or employing of nyoe thmshl be demdt eaoaino hsSpplementaryCoe (a) The sale or exchange of any product in whole or in p~art belowf the cost of such product to the particular memnber of the- Industry, such cost to be computed according to a cost formula to be formulated by the Supplementary Code Authority or approved by a reputable firm of accountants, and approved by the Administrator: Providled, however,, That dropped lines, or seconds, or inventories which must be converted into cash to meet emergency needs m~ay be disposed of by any member of the Industry, at anyprean on any terms and conditions, but. only4 if such, member of ~, B1the In- dustry has filed with Supplemnentar~y Code Authority, not less than. two weeks before such disposal, a staztemnent in writing, setting forth the fact of and reasons for, such proposed disposal. Pr~oviEed, furtherr, That selling below cost (as defined in 1Para- graph I of this Section A) to meet existing competition on products of equivalent design, char~acter, qualityl or specifications shall not be deemed a violation of this Article: PrlovidedE, furzther, That no provisions of this Supplemnentary Code relating to prices or terms of sale, shipping or marketing, shall apply to or affect the sale of any product for direct shipmuent in export trade by any member of t.hec Indlustryr wiithin the meaning of the term "export trade "' as it. ii u1sed in the lExport Trade .Act. (b) The provisions of Article V', Par~agr~aph (b) to (g), inclusive, of the Basic Code are a part of this Supplementary Code to the same extent as if here repeated and set. forth in full. (c) Supplying usable samples in excess.f of the value of 25C each, for display purposes for less than law~ful prices. Supplyinga with- out charge or at less than cost sample boards and equipment con- nected therewith, including t.he servicing thereof except samples or miodels submitted for buyers' inspection and review, not offered to all purchasers under like conditions, which conditions shall be a manufacturer's trade. policy published and offered in connection with price lists to the trade illustrating or describing merchandise to be sold in connection therewith. (d) M~aking or giving to any purchaser of any product any gar- antee or protection in any form against decline in market prie of such product, after date of shipment. (e) Cancelling in whole or in part, or permitting the cancellation in whole or in part, of any contract of sale of any product unless for justifiable cause or a fair consideration. (f) Mfaking contracts requiring delivery of specified quantity or quantities in specified time, if demanded by the buyer, but not re- quiring the buyer to accept such quantity or quantities within the specified time. (g) M~aking contracts at a specified price for an unspecified quan- tity for delivery as demanded by the buyer. (h) Offering any article, by price or otherwise, in a manner to influence the purchase of another article. (i) Soliciting by any member of the Industry the pooling of orders from several customers and/or buyers in a manner to give t~he customers and,/or buyers advantage of more favorable price or terms than those to which the buyers would be entitled individually. (j) Consigning merchandise for any reason whatsoever, except to a wholly owned or controlled subsidiary, or except under circum- stances to be defined by the Supplementary Code Authority where peculiar circumstances of the Industry require the practice. (kr) Copying original designs, patterns or forms of any memnber- of the Supplementary Code, filed pursuant to the provisions of this Supplementary Code, without his consent. (1) Accepting the return of merchandise for reasons other than defects in such merchandise existing at the time of shipment, seller's mistake in shipment or purchaser's credit beecoming impaired unless a minimum charge of 10%o for rehandling be made. Accepting the return of discontinued and/or unlisted merchandise under any cir- cumstances except because of defects in such merchandise exlstingt at the time of shipment, seller's mistake in shipment or purchaser's~ credit becoming impaired. SECTION 2. Terms shall be two per cent ten days, net thirty days, with the privilege to discount all invoices of any one month on the tenth day of the month following, with no allowance for anticipa- tion; all shipments t.o be made f.o.b. factory, warehouse or branch with store door delivery permitted in towns or cities where such factory, warehouse or branch is located, provided, however, that any manufacturer shall have the right to bill his merchandise with freight allowance to equal f.o.b. shipping point or store door delivery of any competing manufacturer's factory from which com- petinga merchandise is suTpplied, or to equal f.o.b. shipping point or store door delivery of any competing manufacturer's warehouse or branch from which competing merchandise is supplied if the price of any such competing manufacturer's warehouse or branch does not include freight from source of shipment. The violation of any of the provisions of this Section shall constitute an unfair practice and a violation of this Supplementary Code. SECTION 3. One of the main causes of demoralization and ruinous price conditions in the Industry has been the substitution for Standard Products of products which do not measure up to recog- nized standards. It therefore shall be an unfair method of competi- tion for any manufacturer, when an inquiry calling for a Standtard Product is received, to quote on or sell a product which does not measure up to the specifications of Standard for said product. The Standards for Drapery and/'or Corpet Hardware, as to form, dimensions, materials, etc., shall be th~e tanldards pr~omulgated and, from time to time, amended by the Supplemlentary Code Authority in cooperation w~ith the B3ureau of Standar~ds of the Unitedl States subject to the approval of t~he A~dministrantor. Provided, however that neither this A\r~ticle nolr a7ny provjisioln thlereof shall be construed to prevent a member of the Iridulstry from continuing to manufac- ture and sell, pursuant. to the remaining pr~ovisions of this Supple- mentary Code, any product or products mannufactur~ed anid sold by him prior to the effect~ive dlate of thlis Surpplemelntar~y Code, without the consent of such member. Providedl, further, thant neither this Article nor any provision thereof shall be construed to prevent a member of th~e Indusit~ry from developing new designs or types of Standard or other products and mnunrfactur~ing and selling the same pursuant. to the remaining p~rovisions of this Sjupplllementary Code. ARTICLE Y111I-Rl10NOPlOLIE S No provision of this Sulpplementaryv Code shall be applied, so as to permit monopolies or monopolistic practices, or to eliminate, op- press or discrimiinate against small enterprises. ARTICLE IX--ATODIFICATIONS SECTION 1. This Supplemlentary Codle and all the provisions thereof are eparessly madeP subject. t.o the right of thie Pr~esidenit, in necord- ance with provisions of subsection (b) of Section 10 of the. Act, from time to time: to cancel or modify any order, approval, license, rule~ or regulation issued under said Act. SECTION 2. This Supplem-entary Codle, excetIi as to provisions re- quired by the Act., may be m~odlifiedl on thle barsis of experience or changes in circumnstaRnces, such mnodifientions t~o be based uipon appli- cation to the Administ~rator and such Notice and H-ear~ingr as he shall specify and to become effective on approval by the President. ARTICLE X--PRICE INCREASES Whereas the policy of the Act to increase real purchasin g power will be made more diffcult o.f co.nsummation if p.ric-es of go~ods and services increase as rapidly as wHageS, it is recognized that price increases except such as may be requir~ed to meet individual costs should be delayed, but. when made, such increases should, so far as possible. be limited to actual additional increases in the seller's costs. ARTICLE XI EFFECTIVE DA~TE This Supplemnentary Code shall become effective at 12:01_ o'clock a.m. Eastern !Standardl Timne of the tenth day after it is approved by the President. Approved Code No. 84. Supplement No. 22. Registry No. 1114--22. II IIIII11ll illllll| Ill IIIII III11| I lliil i: |