Code of fair competition for the foundry supply industry as approved on February 5, 1934


Material Information

Code of fair competition for the foundry supply industry as approved on February 5, 1934
Portion of title:
Foundry supply industry
Physical Description:
p. 219-229 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Foundries -- Equipment and supplies -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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. 1112-01."
General Note:
"Approved Code No. 261."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952673
oclc - 63655187
System ID:

Full Text




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Apae Cade~ Ne. 21

Redsisry Na. 1112-41l


we so on sear

U.S. SEPO~"'r

W Au3EENGTO : 153.

This publication is for sale by the Superintendent of Documents, Government
Printing Office, Wasshington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
Atlanta, Ga.: .504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, M~ass.: 1801 Custombouse.
B~utalo, N.Y.: Chdmber 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 Commerce Building.
Detroit, M~ich.: 801 First National Bank Buildiing.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Inid.: Chamber of Commuerce Building.
Jacksom \ille, Fla.: Chamber of Commnerce Building.
Kann:as City, hlo.:1028 Baltimore Avenue.
Los Anlgeles, C'alif.: 1163 South Broadway.
Louisville, Kyv.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
Mlinneapolis, 10inn.: 213 Federal Building.
NVew Orleans, La.: Roora 225-A, Customhouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Phiiladelpjhia, Pa.: 4'22 Commiercial Trust Building.
Pittsburgh, Pa.: Ciambher of Commerce Building.
Portland, Oreg.: 21.5 New Post Office Building.
St. Louis, M~o.: ,506 Olive Street.
San Francisico, Calif.: 310 Customhouse.
Seattle, WYash.: SO9 Federal Office Building.

Approved Code N;o. 261



Acs Approved on February 5, 1934


Aln application hiavin~g been duly made pu~rsuant to ancd in full
compliance withn the provisions of T~itle I of the NI~at~ional Industrial
Recove~ry Act, appr~ovedl June 16, 1933, for approval of a Code of
Fair Competition for the Fioundry Supply Industry, an hearings
having been duly held thlereonl an~d th~e annexed report on said Code,~
containing findiingrs w~ith respect there~tto, having been made and
directed to the Presidlent:
NOW, THIEREFORE, on behlalf of the President of the United
States, I, HTugh S. Johnson, Administrartor for Industrial Recovery,
pursuant to authority rested in mneby Executive Orders of the
Presidentt, including Executive Order No. 654-13-A, dated December
30, 19:33, and otherwise; do her~eby incor~porante by preference said
annexed report and do find that said Code complies in all re~spects
with the pertinent provisions and. will promote thle policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Cfompetition be and it is hereby approved; provided, how-
ever, that the provisions of Article VII (Section 2), insofar as they
prescribe a waiting period between the filing with the Code Author-
ity andi the effective date of revised price lists or revised terms and
conditions of sale be and they are hereby stayed pending my further
Order either within a period of sixrty days from the effective date of
this Code or' after thne completion of a study of open price associa-
tions now- being condlucted by the National Recovery Administration.
Admlrinistrat~orl for Industrial Riecovery.
Approval recommllended :
W~. A. HAr.nranN,
Divis;io1 Adm~inistrator.
February ,5, 193S.




T~he Whit Hr ou~se.
SmR: This is a report on the Cede of Fair Competit~ion for the
Foundry Supply: Industry, the hearings havingr been co~nducted
ther~eon in Washington, D.C~., on Decemnber 28, 1933, in accordance
with the provisions of t~he National Industrial Recovery Act.


This Code provides that 8 hours shall constitute the normal number
of w~ork~ing hours per day, 40 hours the normal number of working
hours per week, except that employees many work not exceeding 48
hours a week for four w~eek~s in any six mrnt~hs' period. These pro-
visions are applicable to all employees except traveling salesmen,
outside service mren and watchmen, who may be permitted to work
48 hours per week, and persons employed in managerial, executive,
or supervisory capaesty receiving not less than $35.00 per week. It
provides fulrt~her that no em~ploye shall be permitted to work more
than 6 dlaysi any calendar wek
The rates of pay provided for production labor arte 400$ per hour
for both mien and women. Time and one half will be paid produc-
tion. emnployrees for hours wporked in excess of the number of hours
specified herein above.
All other employees will be paid at not less than the following
Fifteen dollars ($15i.00) per week in any cityl of over 500,000
po~pulation or in an immnediate tI~rae ar~en of such city; $142.50 per
week in any city of between 250,000 and 500,0010 p~opulatin ri h
immnediate tradle ar~ea of suich eity; $14.00 pecr week in any city or
town of less than 250T,000O population. Nothing in this provision
shall be interp~reted to m~ean that p-art-timie workers shall be com-
pensatedt onl a full-t~ime basis.
Equiitable adtjustmients are to be made of all wagre rates above said
Child Labor is prohibitedl and no person under 18 years of age
shall be: emnployed in a hazardous occupation.


The Foundry Supplyr Indtutry as defined inl the Code includes the
mannufacture a~nd sale of foundry facings and supplies ; in particular
the commnodliitis commonly known in the Industr~y as foundry plumn-
badgo, sea coal, parting, core wash, core paste, pitch core compound,
as well as other forms anld description of foundlry facings and miscel-
laneous foundry supplies, and its -usitomers ar~e, therefore, confined
to thre various metal foundries of the country.


The investment in the Industry is approximately $2,500,000 esti-
ma.ted value anid the nlumbr of wage earners in normal times about
400, people, with an estimated annual pay roll of $550,000.
In 1929, which is considered a normal year, operations were at a,
rate of app~lroximlately 60%0 of capacity, with a value of production
of about $3,09s,000. `Operantions in 1980 were about 37%0 of capacity;
in 1931 about 35% of onpancity; in 1932 about 19%0 of capacity; in
1933 about 183~L of capacity.
I believe that the Code is fair to Industry, to L~abor, andi to the
Public, and is in necordac~lnce w7pith the intent and purpose of the
National Inldustrial Recovery Act.
Th'fe D~eputy Administrator in his final report to m~e on said Code
having found as herein set forthf andl on the basis of all the pro-
ceedings mn this matter:
I ~find that:
(a) Said Code is well designed to promote the policies and pur-
poses ,of Title I: of the N~ational Industrial Recovery Act, including
removal of obstructions to the free flow of inter~stat~e and foreign
commner~ce which tendl to diminish the amount thereof and wcPill pro-
vide for the? general welfare b~y promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by indluc~ing and maintaining united action of labor and management
unmder 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 avoid-
mng undue restriction of production (except as may be temporarily
r~equir~ed), by increasing the consumption of industrial and agri-
culturatl products through increasing purchasing power, by reduce
andl relieving unemployment, by im~provmng standards of labor,an
by otherwise rehabilitating industry.
(b). Said industry norm~ally employs not mxore than 50,000
employees, and is not classified by me as a major industry.
(c) The Code as approved complies in all respects wcPith the perti-
ne~nt provisions of said Title of said Act, 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 Industry;
and that said group imposes no inequitable restrictions on admission.
to membership therein.
(d) The Code is not designed to and will not permit m~onlopolies
or monopolistic practices.
(e) The Code is not designed to and wpill not eliminate or oppress
small enterprises and will not operate to discriminate against them.
~(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons? therefore, I have approved thiis Code.
HUon S. Jon Nson,



To effectuate the policies of Title I of the National Indust~rial
Recver Ac, te flloingprovisions are submitted as a Code of
Fair Competition for theFonrSupyIdsyadpnap
proval by the President shall be the standard of fair competition for
such industry and shall be binding upon every member thereof.

The term Foundry Supply Industry as used herein includes
the industry engaged in the manufacture and sale of foundry facings
and supplies, including the commodities commonly known as foundry
~lu~mbnao, sencoal, parti;ng core wash, core poste, pitch core com-
pound, andt other forms and descriptions of foundry facings and
mniscell aneous foundry supplies, and such related branches and sub-
divisions of said idsr as may from time to time be included
under thie provisions of this Code.
The term employee as used herein includes anyone engaged
in the industry m ny caaiyrciigcompensation for his
series, irepeciveofthe nature or method of payment of such
The term "' member of the industr-y includes anyone engaged in
the industry as above definedt, either as an employer or on his own
The terms Presidlent ", "Act ", and "Administrator as used
herein shall mean, respectively, th~e Pr~esident of the United States,
Title I of the National Industrial Recovery Alct., and the Adminis-
trator thereof.
AerxICr II~I- loon

1. Emiployees shall not be required or permitted to work hours in
excess of the limits prescribed in the following schedule:
LScliriul~e of WGorki-ng HC1ozrs.--(a) Executives and employees en-
gaged in a supervisory capacity receiving $35.00 or more per week:
NJo limlitation.
(b) Outside salesmen: No limitation.
()Repair crews, engineers, shipping clerks, and any employees
engag~led1 in emergency maintenance or repair work: No limitation
pronded that at least one and one half times his normal rate shall
be paid any such employee for hours worked in excess of 9 hours
in any one day or 44 hours in any one week.
(d) Watchmen: 48 hours inr any onle weiek.


(e) Clerical and office employees: 9 hours in any one day (pro-
vided that the normal wFoTr day shall not exceed 8 hours) and 40
hours in any one week, and for not to exceed 4 weeks in any period
of six months 48 hours in any one week.
(f) All other employees including factory, mill, and mechanical
workers and artisans: 40 hours in. any one week, and for not to exrceed
4 weeks in any period of sixr months 48 hours in any one week.
2. No emnployvee shall be permitted to worki more than 6 days in any
calendtar w-eekr.
AnaLazz IV-WGE;S

1. N~o factory, mill, mechanient worker, or artisan shall be paid at
less than the rate of 400 per hour.
2. Nio other employee shall be paid~l at less than the following
rates: not less than fifteen dollars ($15.00) per week in any city of
over 500,000I) population or in the immediate trade area of such city;3
nor less than fourteen dollars and fifty cents ($14.50) in any city of
between 250,00)0 and 500,000 population or in th~e immedliate trade
area of such city; nor less than fourteen dollars ($14.00) per week
inr any city or town of less than 250,000 popllat ion. Nothmng in this
section shall be interpreted to mean that part time workers shall be
comp~ensated onl a full weekly basis.
3. This art~icle. establishes mimnimum rates of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
other basis.
4. T'he weekly compensation for full time employment now in ex-
cess of the minimum wa~ges hereby established shall not be reduced
(notwirithstanding that the hours workedl in. such employment may be
hereby reduced) but this provision shall not require that hourly
rates of pay shall be increasedl thereby more than 2070, and the pay
for such employment shall be increased3 by an equitable readjustment
of all pay schedules where thre adjustment of pay schedules herein
provided has not already been made in compliance with the Presi-
dent's Reemployment Agreement. Within; 60 days after the effective
date of this Code each member of the industry shall report to the
Code Authrority the action taken under this section since June 16,
5. Female employees performing substantially the same work: as
male employees shall receive, the same rate of pa~y as male employees;
and where they displace men, thfe~y shall receive the same rate. of
earnings as thle men they diisplace. The Code Authority shall within
ninet.y days after the effe~ctive date of this Code file with thze Ad-
ministrator a description of all occupations in the industry in which
both men and wromnen are employed.
6. This Article establishes rates of pay which shall be exempt from
any charges, fines, andf/or deduction by the employer, except such
deductions as are voluntarily author~ized by the employee.
7. An employer shall make payment of all wages due in lawful
currency or by negotiable check therefor, payable on demand. These
wages shall be exempt from any payments for. pensions, insurance,
or sick benefits other than those voluntarily paid by the wage earn-
ers, or required by State or Feder~al laws. Wages shall be paid at


least at the. end of every two-week period, and salaries at least at the
end of every month. No employer shall withhold wages.
8. An employee shall be paid at least his normal rate of pay for
all time required to be spent a~t the place of employment or In con-
nection wcrith t~he discharge of duties of such employment.
9. NIo employee shall be dismissed for ma.kilng a complaint of,
or giving evidence with respect to a violation of this Code, provided
said complaint or evidence Is presented in good faith.
1. No person under 16 years of age shall be employed in the in-
d~ustry, nor anyone under 18 years of age at operations or occupa-
tions hazardous inl nature or detrimental to health. The Code Au-
thnorityr shall submit to the Administr~ator within sixty days after
the effective date of this Code a list of such occupations. In any
State an, employer shall be deemed to have complied with this pro-
vision if he shall have oln file a certificate or permit duly issued by
the authority in such State empowered to issue employment or age
certificates or permits, showing that the employee is of the required
2. In compliance wiith Section 7 (a) of the Act, it is provided
that :
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their owfn choosing, and shall
be free from the :interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such repr~esentat.Ives or
in se~lf-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) No emlolyee and no one seeking emnploy~ment shall be required
as a condition of employment to join any company union or to re-
framn from joinmng, organizing, or assisting a labor organization of
his ow\cn choosing.
(c) Emlployers shall comply with, the maximum hours of labor
minimum rates of pay, and other conditions of employment, approved
or prescribed by~ the President.
3. Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employer regu-
latingr the age of employees, wages, hours of work, or health, fire,
or general working conditions than under this C'ode.
4. Emiployers shall not reclassify employees or duties of occupat-
tions performed by employees or indulge in a.ny other subterfuge
so as t~o defeat the purposes of this Act.
5. Each employers shall post in conspicuous places full copies of
the labor pronsions of this Code.
6i. EveryT employer shall make reasonable provision for the safety
and health of his employees at t.he place and during the hours o
their employment.
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the
administration of this Code.


1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of 7 persons herreinafter to
be referred to as the industry members of thze Code Authority, to-
ge-ther witth such p~erson1 or pe'sons, nlot to exceed 3, as may be
appointed by the Administrator.
(b) The Ind~ustry members of the Code Authority shall include the
5 members of the B~oard of Directors of ~the Foundr SupplyT Manu-
facturers Association elected as provided in the C~onstitution and
By'-Laws of said Association, and 11n addition, 2 persons who shall be
elected at a meeting of the industry to be called by the ]Foundry
Supply Mannufacturers Association and to be held on or before thirty
day-s after the effective date of this Code. Notice of such meeting
shall be given to each member of the industry not less than ten days
before the day of such meeting. Each member of the industry w~ho
shall have assented to and complied with the requirements of this
Code shall be entitled to one vote in th~e election of industry mem-
bers of the Code Authority and may cast such vote either by person
or by proxy. The Administrator, in his discretion, ma~y appoint not
maore than 3 additional members of the Code A~uthority, witout
vote, to represent the Admninistrator or such groups or interests as
may be agreed upon.
(c) The F'oundry Supply Mlanufatcturers Association shall: (1)
Impose no inequitable restrictions on memberships and .(2) sub mi
~to the Adlminist~rator true copies of its articles of Association, bylaws,
regullations, and any amnendmrents when made thereto, together with
such other information as to membership, organization, and activities
as the Administrator may deema necessary to effectuate the purposes
of the Act.
(d) I[n order that the Code Authority shall at all times be truly
representative of thie industry and in other respects comply with the
provisions of the Act, the Admlinistrator may provide such hearings
as he mnay deem proper; and thereafter if he shall find that the Code
Auth~ority~ is not truly rep~resentativ-e or does not in other respects
comply with the provisions of the Act, may require an appropriated
modification in the meFthod of selection of thne Code Authority.
2. The Code Authority shall ha~ve the: following duties and powers
to the extent permitted by thie Act, subject to the right of the -Admin-
istrantor on review to disapprove or modify any action taken by the
Code Aluthorityr.
(a) It may employ as its administrative staff the adlminist~rative
staff of the Founir~y Supply M~anufacturers Association.
(b) It shall determine the amount of the expenses necessary for
the administration of this Code.
(c) It shall, by agency of its administrative staff, render an in-
voice monthly to eaclh member of the industry wrcho shall have so-
cepjted the benefit o~f the services of the Code Authority or otherwise
assented to this Code, for such member's reasonable share of the
expenses of administerincr thie Code, and e~ach such member of the
industry shall be required to pay the amount so invoiced within 30
days after the date of invoice.
(d) It may require, and authorize its administrative staff to col-
lect, from every member of the industry such reports, statistics, and


other information as may be necessary to carry out the provisions
of thle Act, in such detail and at. such intervals as it may prescribe.
(e) It may employ its administrative staff to make such audits ofE
re~or~ds of members of the industry as may be necessary to carry out
thie! provisions of the Act.
(f) Reports and statistics collected by, and audits made by, t~he
administrative staff of the Code Authorityv shall be kept confidential
and the data of one member of the industry shaUl not be revealed
to any other member of the industry or to any member or members
of the Code Authority except inl composite form or except as other-
wise provided in thle Act or as required by7 the Admiinistrator.
(g) On complaint of interested parties or upon its own initiative
it shall make such inquiry and investigation as to t~he operation of
tle. Code as may be necessary and shall report the same to the
Ad1m i ni st rat or.
(h) It may formulate and r~ecommnend to the Administrator for
his approval such measures as may be appropriate to prevent un-
soundl, unfair, or destructive competitive practices or prices in the
industry which interfere with the effectuation of the policy of the
(i) It may formlulate and recommend t~o the Administrator uni-
form credit practices which shall be observed by all members of the
indutrywhe proved by the Administrator.
(j) Members of thre industry shall be entitled to part~icipate in
and share the benefits of t~he activities of the C~ode Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code andr sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be deter-
mlined by the Code Authority, subject to review by the Adminis-
trator, on th~e basis of vFolume of business and/or such other factors
as may be equitable to be taken into consideration.
3. InI addition to the information required to be submitted to the
Code Authorityl there shall be furnished to government agencies
suchn statistical Lmformation as the Administrator may deem neces-
sary for th~e purposes recited in Section 3 (a) of the Act.

1. The Code Authority shall as soon as practicable, formulate a
standard method of costinar and accounting for the industry and
submit the same to the Aiministrator. When it shall have been
approved by the Administrator, thle Code Authority shall furnish
to each member of the industry a complete description of such
standard method of accounting and costing.
2. The Code Authority shall fix a date on which the open-pries
plan of selling such standard product or products of the indus-
try as it shall specify shall be put into effect. Notice of such date
shall be announced to all known members of the industry who manu-
fac~tulre and/or sell such products not less than 30 days prior to the
date so fixed. APt least 10 days prior to such date every such mem-
ber of the industry shall file wvith thle Code Authority schedules in
suchl form atnd detail as the Code Authority shall prescribe subJect


to the reviewP and disapproval of the Administ~rator, of pprices
(including terms and conditions of sale, discounts, commissions to
robbers, freight charges, and freight. allowances) of all such products
offered for sale by such meber. All such oliriinal schedules shall
become effective on the date fixed by the Code Auth~ority as provided
-hereinabov~e. A revised schedule or a liew schedule mnay be filed by
a member with~ the Code Authority at any timle. Any such revised
schedule or new schedule shall become effective on the fifth day-
after the day on which the receipt of such schedule shall hav-e been.
recordledl in the office of the Code Aurthority Wchenueo any member
shall file any' original schedule or any rev-isescdueoannw
schedule, any other member may also file a revision of his owcn
schedule, and if such other member shall so desire and state therein,
the same shall be effective as of the same date as such first mentioned
schedule. The Code Ault.hority may promtly furnish to all mem-
bers of th~e indlustr~y, who m~anufaceture undt/or sell any par~tic~la~r
product, copies of all schedules, revised schedulles, or new schedules
which pertain to such product, and upon request shall furnishl, at
cost, to any other person concerned, copies of such s:chledullesl
3. After a standard method of necountilgr and costing shall have
been formulated byr the Code Authority and approved by the Ad-
ministrator, a, member of the industry shall submit. to the Code
Authority a statement, to accompany each schedule of prices and
conditions of" sale or revisions thereof filled by such member, setting
forth whether such. schedule is justifiedl by such member's cost or is
justified by the previously filed schedule of another ml-nlembe of the
(a) -No schedule julst~ifiedl by the cost of the member filing said
schled~ule shall become effective if the price theremn of any produc~lt. of
the indus1~t~ry (inc~ludringr terms and conditions of sale, discounts, com-
mlissions to jobbers, freight charges, and freight, allowances) is less
than the cost of such produclet to such member as determined in
acc~or~dnce withl the aforesaid standard method of account~ingr and
cost ing.
(b) No schedule just~ifiedl by a schedule previously filed by an~ot~her
member of the industry shall becomelC effet~''ive if the price therein o~f
any product of the industry (including terms and clondtitions of sale,
discounts, commi~ssrions to job~bers, fl~jreigt chalrge~. a~nd freigh~t, allowm-
ances) is less than the lowest justified price of the same product
appearing in anyr scheduleP--- ~.-..~ previously filed by any other member of
the industry and still in eff~ect. No schedule julstified by a schedule
previously filed byT another member of thre industry shall remain int
efFe~ct after such last named justifying schledule shall have been
~it~hdrawn, cancelled, or revised upwar
(c) If any member of the industry shall have failed to install anld
to maiintain the aforesaid standard method of accounting and cost-
ing, then such member shall not file any schedule of prices (including
terms anld conditions of sale, discounts, commissions to jobbers,
freight charges, and freight allowances) in which the price of anyg
product. is less than the lowest justified price of the same product
app~earing in anry schedule previously filed by an~y other member of
the industry and still in etfect.
a See paragraph 2 of order approving this Code.


4. Except in fulfillment of bona fide contracts existing on the effee-
ti~ve date of this Code and which shall be reported to and recorded
by the administrative staff of the Code Authoritsv, no member of the
industry shall sell or offer for sale for domestic consumption any
standard product of the industry described and listed in the latest
schedule of prices filed by himn with the Code Authority as herein-
before providled at a price or prices other than or upon terms or
conditions other than statedi in such schedule.
5. The Codle AuthorityS may at, any time suspend the open-price
plan of selling either in its entirety or insofar as it applies to any
specific product or products of the industry.

F~or all purposes of the Code the acts described in this Art~icle shall
constitute unfair practices. Any member of the industry who shall
directly, or indirectly through any officer, employee, agent, or repr~e-
sentative, uise, employ, or permit to be employed, any of such unfair
practices shall be guiltyS of a violation of the Code.
(1) Fa~lse Mlar)kinlg or Branldin~g.-T he false marking or brandinga
of any product of the indus-try which has the tendency to mislead
or decelve customers or prospective customers, whether as to the
gadle, quality, quantity7, sub~stance, character, nature, origin, size,
fnsor preparation of any product of the industry, or otherwise.
(2) Mllwrepr~esen tati'on or False or Mlisleading Atdvertising.--The
miakingr or causing or knowingly permit~ting ton be made~ or published
any false, materially inaccurate, or deceptive statement by way of
advert~isemlent. or otherwise, whether concerning the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepara-
tion of any product of the industry, or the credit terms, values,
policies, or services of any member of the industry, or otherwise,
hving tetendency or capacity t ila rdciecsoeso
prospective customers.
(3) Commzercial Briber2y.-The giving, permitting to be given, or
directly offering to give, atnything of value for the purpose of influ-
encing or rewarding the action of any employee, agent, or represen-
tative: of another in relation to the business of the employer of such
employee, the principal of such agent, or the represented party, wit~h-
out the knowledge o~f such employer, principal, or party.e Counr-~
cial bribery provisions shall no econst~rued to prohibtfe n
~general distribution of articles commonly used for advertising except
so far as such articles are actually used for commercial bribery as
here~inabove defined.
(~4) Interfere nce voith C~on~tractual Relatio ns.-Mbaliciously i nd uc-
ing or attempting to induce the breach of an existing oral or written
contract between ;a competitor and his customer or source of supply,
or interfering wccith~ or obstructing the performance of any such con-
tract~ual duties or services.
(5) Secret Rebates.--The secret payment or allowance of rebates.
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or the secret extension to certain pur-
chasers of special services or privileges not extended to all purchasers
on lik terms and conditions.


(6) Givling of Pr~izes, Pr~ern ium~s, or G~ifts.-The offering or giving
of prizes, pr~emiulms, or gifts in. connection with the sale of products,
or as anl indlucemenlt thereto, by any scheme which involves lottery,
miisrepr~esentation, or fra ud.
(7) iDefamat~7ion. -The dlefamnation of comlpet itors b~y falsely imn-
puting to themr dli h~onorable condc-uct, inability to perform contracl:ts,
quest~tiona~ble credit standcing,u or by other false Ic1c;representations; or by
thle faulse disparagrement of the grade or quanlitly of their g'oods-.
(8) Threattrs of Litigatizon.--The publishing or circulating of
th~eat~s of suits for infringement of patelt~s or trade mal~~rk or of an1y
other lealpron -rrceeding~s not in good faith, with thle tendetncy or effect
of harassing competitors or intimidating their customers.
(9) Es~pionacge of Comnpet it crs-Sec~uringv confidenitial iifor~nux-
tion c~oncerninga the business of a comp et~itor by a false or misleadnglll
statement or repr~eientation, by a Ifalse imrperronation of one in
authlority, byT bribery, or by any other unfair method.
(10) Imzitation, of Trade~ Mar~ks or Trade Names.-Imitation of
the trade! mark or tradlce name of a competitor.
(11) Consa~ign ments to Co~s~unwrs~rj.-Consigning goods to con-
sumer~s to be paid for as used.
(12) False Darting of Iwouoices.-D~Iatinga invoices as of any othrlr
date than the day of ship~menlt.

1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance w-ith the provi-
sionls of subsection (b) of Section 10 of the National Industrial
Recovery Act, fr~om- time to time to canlel or modlify any order,
appr'ova~l, license, rule, or regulation issued under Title I of said
Act aind specifically, but wsJithout limitation, to the right of the Pres-
ident to cancel or modify his approval of this Code or anly conditions
imposed by him upon his approval thereof.
2. This Code3, exc~ept as to p~rovisions required by the Act, many
be modified on. the basis of experience or ch ranges in cir~cumnst a nces,
such modifica~tionls to be based upon appitonothAmista
tor nd uchnotce f herin ashe hal specify, and to become
effective on approvc~al of thle Administrator.

This Code shall become effective on the 15th day after its ap-
proval by the President.
Approved Code No. 201.
Registry No. 1i112-01.

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