:NiIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
I .POWER AND
Sh -GANG LAWN MOWER
AS APPROVED ON MARCH 26, 1934
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GOVERNMENT PRINTING OFFICE
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Approved Code No. 84-Supplement No. 12
SUPPLEMENTARY CODE OF FAIR COMPETITION
POWER AND GANG LAWN MOWER
As Approved on March 26, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
POWER AND GANG LAWN MOWER MANUFACTURING INDUSTRY
A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16. 1933, and in accordance with the
provisions of Section 1 of Article VI of the Basic Code for the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary Code of Fair Competition for the Power and
Gang Lawn Mower Manufacturing Industry; and hearing having
been duly held thereon; and the annexed report on said Supplement-
ary Code containing findings with respect. thereto, having been
made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 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 Fair Competition be and it is hereby ap-
proved; provided, however, that the provisions of Article V, Section
5, insofar as they prescribe a waiting period between the filing with
the Code Authority and 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 sixty days from
the effective date of this Code or after the completion of a study of
open price associations now being conducted by the National Re-
HUGH S. JOHNsoN,
AdminhifNrator for Industrial Recovery.
A. R. GLANCY,
MAnCH 26, 1934.
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REPORT TO THE PRESIDENT
The White House.
Sin: This is a report on the Supplementary Code of Fair Com-
S- petition for the Power and Gang Lawn Mower Manufacturing In-
.:: dustry, a division of the Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating Industry, the hearing hav-
ing been conducted thereon in Washington, D.C., December 20,.1933,
in accordance with the provisions of Title I of the National Indus-
trial Recovery Act.
The Power and Gang Lawn Mower Manufacturing Industry,
being truly representative of this division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry, has elected to avail itself of the option of submitting a
Supplementary Code of fair practice, as provided for in Section I
of Article VI of the Basic Code, for the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry
approved by you 6n the second day of November, 1933.
RESUME OF THE CODE
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Sup-
Article III establishes a Supplementary Code Authority consist-
ing of three (3) members elected at a meeting called by the Supple-
mentary Code Authority and gives the Administrator the authority
to appoint one to three additional members without vote and pro-
vides machinery for obtaining statistics and the administration of
the Supplementary Code.
Article IV. This Industry is a division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Article V provides for the filing of price sheets with the Supple-
mentary Code Authority.
Article VI sets forth the unfair practices of this Supplementary
Code which has been especially designed to offset unfair competition
in this division of the Industry.
Article VII contains the mandatory provisions contained in Sec-
tion 10 (b) of the Act and also provides for the submission of pro-
posed amendments to the Supplementary Code.
Article VIII provides against monopolies and monopolistic prac-
tices, and recognizes that price increases be limited to actual addi-
tional increases in the seller's costs.
Article IX states the effective date and duration of this Supple-
Schedule "A" gives the average appraisal value of Power and
Gang Lawn Mowers in use for 2, 3, 4, and 5 years of various manu-
The Assistant Deputy Administrator in his final report to me on
said Supplementary Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-
tion of industry for the purposes of cooperative action among the
trade groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of in-
dustries, by avoiding undue restriction of production (except as
miay be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and it not classified by me as a major industry.
(c) The Supplementary Code as aplrovedl complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3. Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
applicant association is an industrial association truly representative
of the aforesaid Industry; and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate 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 this Supplementary
Code, with a 60 day stay of the provisions prescribing a waiting
period between the filing and effective date of revised price lists.
HUGH S. JOHNSON,
MARCH 26, 1934.
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SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE POWER AND GANG LAWN MOWER MANUFACTUR-
A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY
To' effectuate the policies of Title I of the National Industrial
Recovery Act, this Supplementary Code is established as a code of
fair competition for the Power and Gang Lawn Mower Manufactur-
ing Industry, pursuant to Article VI of the Basic Code of Fair Com-
petition for the Fabricated Metal Products Manufacturing and
Metal Finishing and Metal Coating Industry approved by the Presi-
dent of the United States on the 2nd day of November, 1933, and the
provisions of this Supplementary Code shall be the standards of
fair competition for and :.shall be binding upon every member
The term Industry ", as used herein, means the manufacture and
the sale by the manufacturers thereof of power lawn mowers, gang
lawn mowers, and/or tractors manufactured for the drawing of
gang lawn mowers when sold by the manufacturer with and as
a part of gang lawn mowers.
Member of the Industry "-includes, but without limitation, any
individual, partnership, association, corporation, or other form of
enterprise engaged in the industry either as an employer or on his
or its own behalf.
Basic Code "-means the Basic Code of Fair Competition for the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, as approved by the President on the 2nd
day of November, 1933.
Distributor "-means a purchaser who, in regular course of busi-
ness, purchases products of the industry and other products in like
field of distribution for resale.
Consumer "-means a purchaser of the product of the Industry
who is not a distributor.
"Association "-means the Power and Gang Lawn Mower Manu-
President ", "Act and "Administrator "-mean respectively the
President of the United States, Title I of the National Industrial
Recovery Act, and the Administrator for Industrial Recovery.
-ARTICLE III-ORGANIZATION, POWERS AND DUTIES OF THE SUPPLE-
MENTARY CODE AUTHORITY
1. There shall be constituted a Supplementary Code Authority,
consisting of three members, who shall be selected within sixty days
from the effective date of this Code by a majority vote of the mem-
bers of the industry present and entitled to vote, in person or by
proxy, at a meeting called for such purpose.
Pending the selection of the Supplementary Code Authority, the
Code Committee shall be a Temporary Supplementary Code Author-
ity, with all powers, duties and responsibilities herein granted to the
Supplementary Code Authority.
Each member of the industry who, by writing filed with the Sup-
plementary Code Authority, shall assent to this Supplementary Code
and agree to comply with the terms and provisions thereof, shall be
entitled to vote at al meetings for the selection of the Supplementary
Code Authority and for the selection of substitute members thereof.
2. The term of office of each member of the Supplementary Code
Authority shall be at the will of the members of the industry, and
successor or substitute members of the Supplementary Code Author-
ity shall be selected in the same manner as provided in paragraph 1
of this Article for the appointment of the original members of the
Supplementary Code Authority.
3. In addition to membership as above provided, there may be
appointed by the Administrator one to three members of the Supple-
mentary Code Authority without vote, who shall be given notice of
all meetings of the Supplementary Code Authority.
4. The Association shall impose no inequitable restrictions on
admission to membership, and shall submit to the Administrator true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such information as
to membership, organization and activities as the Administrator may
deem necessary to effectuate the purposes of the Act..
5. In order that the Supplementary Code Authority shall be at all
times truly representative of the industry, and in other respects com-
ply with the provisions of the Act, the Administrator may prescribe
such hearings as he may deeml proper: and thereafter, if he shall find
that the Supplementary Code Authority is not truly representative or
does not in other respects comply with the provisions of the Act, may
require an appropriate modification in the method of selection of the
Supplementary Code Authority.
6. Nothing contained in this Supplementary Code shall constitute
the members of the Supplementary Code Authority partners. for any
POWER- AND DUTIES
7. The Supplementary Code Authority shall have the following
powers and duties, the exercise of which shall be reported to the
(a) To insure the execution: of the provisions of this Supplemen-
tary Code and provide for the compliance by the members of the
industry with the provisions of the Act, subject to rules and regula-
tions of the Administrator in regard to compliance procedm -
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration of.this Supplementary Code.
(c) To obtain from members of the industry through an impartial
agency such information and reports as are required for the admin-
istration of this Supplementary Code. No individual reports-shall
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be disclosed to any other. member of the industry or to any other per-
son except as herein provided, but. shall be made available to the
(d) To use the Association and such other 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 responsi-
:bilities under this Supplementary Code, and such trade associations
stand agencies so used shall at all times be subject to and comply with
the provisions thereof.
(') To make recommendations to the Administrator for the coor-
dination of the-administration of this Supplementary Code with such
other codes, if any, as may be related to the industry.
(f) Subject to review by the Administrator, to determine the
expenses of the administration of this Supplementary Code and to
.rseare payment by the members -of the industry of such expenses
t apportionedd between them on the basis of volume of sales in dollars,
or on such other basis as shall be equitable.
(g) To recommend to the Administrator further marketing and
fair trade practice provisions to govern members of the industry in
their relations with each other or with other trades or industries, and
to recommend to the Administrator measures for industrial planning,
including stabilization of employment.
(h) The Supplementary Code Authority, subject to the approval
of the Administrator, shall cause to be formulated an accounting
system and method of cost finding and,'or estimating capable of use
by all members of the industry. After such system and method have
been formulated, full details concerning them shall be made available
to.all members. Thereafter all members shall determine andor
estimate cost in accordance with the principles of such methods.
S(i} To co-operate with and assist the Basic Code Authority in
administering the Basic Code and in obtaining from members subject
to this Supplementary Code such reports, statistics and other data as
the Basic Code Authority may properly require.
8. If the Administrator shall determine that any action of a code
authority or any agency thereof may be unfair or unjust or contrary
toothe-public interest, the Administrator may require that such action
be atspended to afford an opportunity for investigation of the nierits
of such action and further consideration by such code authority or
agency pending final action which shall not be effective unless the
Administrator approves or unless he shall fail to disapprove after
80 days notice to him of intention to proceed with such action in its
originall or modified form.
ARTICLE" IV-EMPLOYMENT PROVISIONS
This Industry -is -a division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry and
without limitation-the wage, hour and labor provisions in Article III
of its basic code as approved by'the President on November 2, 1933,
including Section 1 of said Article III by which the. provisions of
sub-4ection (1-), (2) and (3) -of-Se&tion 7 (a) of Title I of the Act
are made conditions of this Supplementary Code, are specifically in-
corporated herein and made a part hereof as the wage, hour and labor
provisions of this Supplementary Code.
1. By means of price sheets each member of the industry, within
ten (10) days after this Supplementary Code shall be approved by
the President, shall publish individual prices, terms and conditions
of sale of all products of the industry offered for sale, which prices,
terms and conditions shall be effective forthwith. Each member of
the industry shall express his prices in the form of net prices or dis-
count from list. Discounts based upon quantity and/or trade clas-
sification and terms and conditions under which such discounts will
be granted shall be clearly set forth in price sheets. Such price
sheets shall separately state (a) Net prices or discounts from .ist
and terms to distributors; (b) Net prices or discounts from list and
terms to consumers.
2. No member of the industry shall sell to any purchaser by any
means whatsoever any product of the industry at a price or discount
other than or on more favorable terms than set forth in published
price sheets of such member at the time outstanding and in force
under the conditions applicable to such sale therein set forth.
3. No member of the industry shall publish a price or terms or
continue in effect a price or terms which will result in a purchaser
paying for the goods received less than the cost thereof to the mem-
ber of the industry publishing such price sheet.
(a) Nothing in this paragraph shall preclude any member of the
industry from publishing prices below cost in order to meet existing
competition on products of equivalent design, size, character, qual-
ity and specifications, as such competition is shown by price sheets of
other members of the industry at the time outstanding and in effect.
Whenever a member of the industry under the provisions of this
paragraph shall publish a price below cost, he shall simultaneously
file with the Supplementary Code Authority a statement in writing
of the items on his own price sheet which are below cost, and iden-
tify the price sheets and items thereon of any other member or mem-
bers of the industry which shall be claimed to form the justification.
(b) In order that the provisions of this paragraph shall not
require increases in sales prices which would be unfair to purchasers
of the product of the industry and harmful to the industry by
producing further decrease in volume, which is now subnotmal,
any member of the industry, pending determination of the prin-
ciples of cost accounting by the Supplementary Code Authority, may
exclude from the computation of cost unabsorbed overhead resulting
from overhead standards based upon an assumed or actual pro-
duction equivalent to but not exceeding the production of the"yeanr
4. Publication of price sheets shall be in the manner following:
Each member of the industry shall
(a) File a copy of his price sheet with the Supplementary Code
Authority, which sheet shall be open to inspection by any interested
(b) Mail on the same day copy thereof to all known members of
(c) Mail on the same day copy thereof to all jobbing and whole-
sale customers of such member.
5. Any member of the industry may change prices, terms and/or
conditions of sale, but no change shall be made or become effective
until after publication of a revised price sheet in the manner pro-
, vided in Paragraph 4 of this Article.
A change contained in the published price sheet of any member
of the industry, which has been in effect for five (5) days, shall
be effective five (5) days after the publication of the revised price
sheet and not prior thereto. The foregoing five day limitation shall
not apply to price changes by any other members of the industry
to the extent necessary for corresponding effective date to all
p. Notwithstanding the provisions in this Article contained, obso-
lete, defective and/or discontinued items or lines which now or
hereafter may be in stock may be sold below cost and without publi-
cation of prices, terms and conditions, provided prior to the sale
thereof a list of the items or lines claimed to be obsolete, defective
and/or discontinued shall be filed with the Supplementary Code
Authority, together with a description thereof, dates of manufac-
ture and prior sale volume, together with such further information
concerning the same as may be required by the Supplementary Code
Authority, and provided, further, no sale shall be made under the
provisions of this paragraph if the Supplementary Code Authority
shall determine that the items or lines proposed to be sold under
,this paragraph are not in fact obsolete, defective or discontinued,
and that the purpose or effect of the proposed sale would be an
evasion of this code and unfair to the other members of the industry,
and the Supplementary Code Authority shall advise the member
proposing to make such sale of such finding within ten days. Any
action taken by the Supplementary Code Authority under the pro-
visions of this paragraph shall be subject to disapproval by the
Administrator, and if disapproved sales under the provisions of
this paragraph may be made.
ARTICLE VI-UNFAIR PRACTICES
In place and in substitution of the fair trade practices set forth
in Article V of the Basic Code, the following acts as described shall
constitute unfair methods of competition; and no member of the
industry shall do any act or thing in this article described as an
unfair method of competition:
1. Entering into or accepting contracts or orders or making com-
mitments to sell without corresponding commitment on the part of
the purchaser to buy a specified quantity at a fixed price.
2. Paying or allowing any commission or benefit to a distributor
in connection with a sale to any other purchaser if the amount
thereof, when deducted from the sale price, shall make the net to the
Bee paragraph 2 of order approving this Code.
member of the industry making the sale less than the price submitted
to be granted such distributor.
3. Making any payment or allowing any credit or benefit to a
distributor or to any purchaser or prospective purchaser not con-
nected with a sale.
4. Making any adjustments, allowances, credits or refunds upon
change in published prices, terms and/or conditions to any purchaser
for deliveries already made or with respect to contracts theretofore
entered into. !
5. Giving notice to any purchaser or prospective purchaser or to
any other member of the industry of intention to change prices, terms
and/or conditions of sale.
6. Promising or allowing protection to a purchaser or prospective
purchaser against changes in prices, terms and/or conditions.
7. Making delivery of any product of the industry on memorandum
or consignment, except under circumstances to be defined by .the
Supplementary Code Authority with the approval of the Admiin-
istrator where peculiar circumstances of the industry require the
8. Including in or omitting from any invoice any statement so
that the invoice shall not be a true statement of the transaction
between the member of the industry and the purchaser.
9. Pre-dating or post-dating any invoice or contract of sale, except
where shipment is after January 1st and prior to April 1st of a
year April 1st dating of the same year may be given.
10. Granting terms which shall be more favorable than three
(3%) per cent C.O.D. or cash with order; two (2%) per cent for
cash in ten days; or sixty (60) days trade acceptance; sixty (60)
days maturity with interest at the rate of six (6%) per cent per
annum for payment after maturity. It shall not be a violation of
this paragraph to give longer payment terms on deliveries under
written lease or conditional sale contract, provided at least twenty-
five (25%) per cent of the purchase price (or such lesser percent as
may be determined by the Supplementary Code Authority with the
approval of the Administrator where peculiar conditions of the in-
dustry require such lesser percent) shall be paid on or before :de-
livery, and an extra charge is made as interest at the rate of not less
than six (6%) per cent per annum, computed from sixty (60) days
11. Publishing shipping terms other than F.O.B. place of manu-
facture or equivalent.
12. Repurchasing or taking in trade any product of the industry
or paying or granting credit or allowance therefore in amounts in ex-
cess of the amount for such product as set forth in a trade-in allow-
ance schedule to be compiled in the following manner:
The Supplementary Code Authority shall determine the average
price paid by consumers on purchases of used products of the indus-
try, based upon a survey of such prices covering the trade-in season
of 1933. From this shall be deducted the average cost for similar
items, of reconditioning, handlingiand selling. The resulting figure
shall represent the trade-in allowance amount which shall be subject
to the disapproval of the Administrator. Full facts with respect to
sales and market values in connection with trade-in allowances shall
: be furnished to the Administrator by the Supplementary Code Au-
tharity upon request of the Administrator.
The Supplementary Code Authority shall, during the month of
'October, 1934 and during October of each year thereafter, secure all
" possible reports and data as to retail or consumer market prices on
S sale of used products of the industry during the spring and sununer
season immediately preceding, together with the average costs of re-
.onditioning, handling and selling such used products. The Sup-
pleeiientary Code Authority, based upon such data, shall determine
the trade-in allowance figure for each product item at a figure which
will permit a trade-in allowance and resale thereof on the average at
not less than cost. Such revised trade-in allowance schedule shall
be submitted to the Administrator, together with the facts upon
which the same is based, and if approved by the Administrator shall
constitute the trade-in allowance schedule.
13. Making any express guarantee with respect to a product of the
industry except the following guarantee.
"The Manufacturer guarantees all parts of equipment shipped
under this agreement for ninety (90) days from the date of pur-
chase by Consumer thereof against defective material and/or work-
manship, but not against damage caused by accident, abuse or faulty
operation, and will repair or replace free of charge f.o.b. factory all
defective parts returned to the factory charges prepaid."
14. Giving, permitting to be given, or directly offering to ive,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent or representative of another in relation
to the business of the employer of such employee, the principal of
such agent, or the represented party, without the knowledge of such
employer, principal or party. Nothing in this paragraph contained
shall be construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are actu-
ally, used for commercial bribery as hereinabove defined.
15. Doing any act or thing by recourse to or through the medium
of a subsidiary or affiliate or exclusive distributor which a member
of the industry is prohibited from himself doing under the provisions
of this Supplementary Code.
1. When the Supplementary Code Authority determines that an
emergency exists in this industry and that the cause thereof is de-
structive price cutting 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 deter-
mined the lowest reasonable cost of the products of this industry,
such determination to be subject to such notice and hearing as the
Administrator may require. The Administrator may approve, dis-
approve or modify the determination. Thereafter during the period
of the 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 that the buyer will pay less
therefore than the lowest reasonable cost of such product.
When it appears that conditions have changed, the Supplementary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.
2. Nothing in Articles V and VI of this Supplementary Code shall
apply to sales between members of the industry, except no sale shall
be made by one member of the industry to another member of the
industry below cost.
3. Nothing in Articles V and VI of this Supplementary Code shall
apply to export sales.
4. This Supplementary Code and all the provisions thereof are
expressly made subject to the right of the President. in accordance
with the 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 Title I of said Act and specifically, but with-
out limitation, to the right of the President to cancel or modify his
approval of any provision of this Supplementary Code or any condi-
tion imposed by him upon his approval thereof.
5. This Supplementary Code, except as to provisions required by
the Act, may be modified and/'or amended on the basis of experience
or changes in circumstances, such modifications and/or amendments
to be based upon application to the Administrator by the Supple-
mentary Code Authority or other representative group within the
industry and such notice and hearing as the Administrator shall
specify, and to become effective as part of this Supplementary Code
on approval of the President, and/or of the Administrator.
6. In case any provision of this Supplementary Code shall impose
unusual or undue hardship on any member of the industry, such
provision may be suspended as to such member by the Supplementary
Code Authority with the approval of the Administrator.
1. No provision of this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to eliminate,
oppress or discriminate against small enterprises.
2. Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except as may be required to meet individual cost should
be delayed, but when made such increases should, so far as possible,
be limited to actual additional increase in the seller's costs.
ARTICLE IX-EFFECTInE DATE
1. This Supplementary Code shall become effective at 12:01 A. M.
on the tenth (10th) day after approval of same by the President.
Approved Code No. 84. Supplement No. 12.
Registry No. 1399-05.
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UNIVERSITY OF FLORIDA
11131 62 l5IIlIIIilI111 ll Ii
3 1262 08584 7639
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