Citation
Code of fair competition for the cooking and heating appliance manufacturing industry as approved on January 30, 1934

Material Information

Title:
Code of fair competition for the cooking and heating appliance manufacturing industry as approved on January 30, 1934
Portion of title:
Cooking and heating appliance manufacturing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
p. 549-561 : ; 24 cm.

Subjects

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

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1629-1-02."
General Note:
"Approved Code No. 236."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004938222 ( ALEPH )
649689454 ( OCLC )

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Full Text




Approved Code No. 236 Registry No. 1629-1-02


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE

COOKING AND HEATING

APPLIANCE MANUFACTURING

INDUSTRY


AS APPROVED ON JANUARY 30, 1934


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934


r e the Superintendent o Document, Washington D Price cent
rbs.ls byr the Superintendent of Documents, Washington, D.C. - Price 5 cents


Approved Code No. 236


Registry No. 1629-1-02























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tes.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.














Approved Code No. 236


CODE OF FAIR COMPETITION
FOR THE

COOKING AND HEATING APPLIANCE
MANUFACTURING INDUSTRY

As Approved on January 30, 1934


I I


ORDER

APPROVING CODE OF FAIR COMPETITION
FOR THE

COOKING AND HEATING APPLIANCE
MANUFACTURING 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, for approval of a Code of
Fair Competition for the Cooking and Heating Appliance Manu-
facturing Industry, and hearings having been duly held thereon and
the annexed report on said 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
President, 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 Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article VIII, (Section 2), insofar as
they prescribe a waiting period between the filing with the Code
Authority and the effective date of revised price lists or revised
36708--313-154---34 (549)






550

terms and conditions of sale be and they are hereby stayed pending
my further Order either within a period of sixty days from the effec-
tive date of this Code or after the completion of a study of open
price associations now being conducted by the National Recovery
Administration.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval Recommended:
W. A. HARRIMAN,
Division Administrator.
WASHINGTON, D.C.,
January 30,1934













The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the
Cooking and Heating Appliance Manufacturing Industry, and on
the hearing conducted thereon in Washington, D.C., on October
25, 1933, in accordance with the provisions of the National Industrial
Recovery Act.

PROVISIONS REGARDING HOURS AND WAGES

Employees are permitted to work forty (40) hours per week and
eight (8) hours per day and, during ten (10) weeks during a twelve
(12) months' period, they are permitted to work forty-eight (48)
hours per week.
Exceptions are provided that permit longer hours for watchmen,
shipping crews, foundry service men, office employees during inven-
tory periods, executives and supervisory employees receiving more
than $35.00 per week, and outside demonstrators, service crews, and
salesmen and for all workers during emergencies. The wage rate
for hours worked overtime shall be one and one half the normal rate.
The minimum rate of pay shall be forty (40) cents per hour for
male workers and thirty-five (35) cents per hour for female workers,
excepting the States of Virginia, West Virginia, Kentucky, Ten-
nessee, North Carolina, South Carolina, Georgia, Florida, Alabama,
Mississippi, and Louisiana, where the minimum rate shall be twenty-
seven and one half (271,) cents per hour. Female employees doing
substantially the same work as male employees shall receive the
same wage.
The minimum rate for office workers shall be $15.00 per week
in cities of over 500,000 population with lesser rates for smaller
cities with the limit of $12.00 per week in towns of less than 2,500
population. Office boys and girls, incapacitated employees, and
learners, shall be paid not less than eighty (80) percent of the
minimum wage, but the number of such employees is limited.
The wage rates of those receiving more than the minimum rates
are to be adjusted equitably and in no case shall the rates be de-
creased. No employees are to be reclassified so as to defeat the
purpose of the Act.
Persons under sixteen (16) years of age shall not be employed and
none under eighteen (18) years at hazardous occupations.

PROVISIONS FOR SUPPLEMENTAL CODES

It is provided that subdivisions of the industry may formulate
supplementary codes but the employment provisions shall conform
with this basic code.
(551)






552


ECONOMIC AND STATISTICAL MATERIAL

The industry is widely distributed over the country although it is
estimated that three fourths of it is located in the Northern wage
district and one fourth in the Southern wage district.
The industry has furnished statistical information showing that
in June 1933 wage rates for common labor had been reduced twelve
12) cents per hour in both the Northern and Southern districts,
rom forty-six (46) cents and twenty-seven (27) cents per hour re-
spectively, from the wage rates of 1929. Under the, code, one half
of the reduction in the Northern wage district will be regained and
the increase in the Southern wage district will more than compensate
the reduction.
There are no data on the number of workers employed prior to
June 1933, but it is estimated that under the code employment will
be increased from 14,000 to 15,500, an improvement of ten percent.
It is also estimated that the weekly pay roll of the industry will
increase sixteen percent under the code.

FINDINGS

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses 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 pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing'undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural 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 is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent 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 monopolies or
monopolistic practices.






553

(e) The Code is not designed to and will 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 Code.
For these reasons, therefore, I have approved this Code.
Respectfully,
HUGH S. JOHNSON,
Administrator.
JANUARY 30, 1934.














CODE OF FAIR COMPETITION


FOR THE
COOKING AND HEATING APPLIANCE MANUFACTURING
INDUSTRY


ARTICLE I--PRPOSES

To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is submitted as a Code of Fair Competi-
tion for the Cooking and Heating Appliance Manufacturing
Industry, and upon approval by the President, its provisions shall
be the standards of fair competition for such industry and shall be
binding upon every member thereof.

ARTICLE II-DEFINITIONS

1. The term Cooking and Heating Appliance Manufacturing In-
dustry as used herein includes the manufacture and sale of all designs
of cooking and heating stoves and ranges and parts thereof, using
coal and wood or combinations of various fuels.
2. The term '" 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 em-
ployer or on his or its own behalf.
3. The term employee as used herein includes any and all
persons engaged in the industry, however compensated, except a
Member of the Industry.
4. The terms President ", "Act ", and "Administrator" as used
herein respectively mean. the President of the United States. the
National Industrial Recovery Act and the Administrator for In-
dustrial Recovery.
5. Population for the purposes of this code shall be determined
by reference to the latest Federal census.

ARTICLE III-Horns

1. Maxrhnum Hours.-No employee shall be permitted to work in
excess of forty (40) hours in any one week or eight (8) hours in
any twenty-four (24) hour period, except as herein otherwise pro-
vided, but with the right to work a maximum of forty-eight (48)
hours per week for any ten (10) weeks during a twelve (12) months
period.
(554)






555


2. Exceptions as to Hours.-(a) Provided, however, that em-
ployees working on emergency maintenance or emergency repair
work involving breakdown or protection of life or property may
work ten percent (10%) additional hours.
(b) Provided further, that shipping crews and foundry service
men whose duties are servicing the cupola and changing flasks and
patterns for moulders are to have a tolerance of one hour per day,
when necessary.
(c) Outside demonstrators and outside service crews whose trav-
eling expenses are paid by the employer, and outside salesmen, are
exempt from the above hour provisions.
(d) Office employees during the annual inventory period may
work an additional thirty-six hours in any two weeks period at the
discretion of the employer, provided that it shall not exceed three
hours per day.
(e) Watchmen may not work more than fifty-six (56) hours in
every seven (7) days nor more than six (6) days out of every
seven (7) days.
3. All classes of workers are exempt from the foregoing hour pro-
visions when an emergency arises such as a fire, flood, or cyclone,
or other unpredictable emergencies, which cause operations to cease;
such exemptions may cover the actual number of hours lost as a
result of such emergency.
4. Any employee at the request of the employer may work ad-
ditional hours beyond those specified above, provided such addi-
tional hours are paid for at the rate of time and one half.
5. Executives and their staffs, supervisors, and office employees,
making thirty-five dollars ($35.00) per week or more, are exempt
from the maximum hours fixed in this code.
6. No employer shall knowingly permit any employee to work for
any time which, when totalled with that already performed with
another employer or employers in this industry, exceeds the maximum
permitted herein.
ARTICLE IV-WAGES

1. No employees shall be paid less than the rate of forty cents (400)
per hour for male workers and thirty-five cents (35v) per hour for
female workers except employees employed in the States of Virginia,
West Virginia, Kentucky, Tennessee, North Carolina, South Caro-
lina, Georgia, Florida, Alabama, Mississippi, and Louisiana, who
shall be paid not less than twenty-seven and one half cents (2714/.)
per hour for male and female workers.
2. Provided that office workers shall not be paid less than $15.00
per week in any city of over 500,000 population, or in the immediate
trade area of such city; nor less than $14.50 in any city of between
250,000 and 500,000 population, or in the immediate trade area of
such city; nor less than $14.00 per week in any city of between 2,500,
and 250,000 population, or in the immediate trade area of such city;
nor less than $12.00 per week in towns of less than 2,500 population,
except that office boys, girls, and messengers shall not be paid less
than eighty percent (80%) of the minimum rate specified herein.
The number of office boys, girls, and messengers shall not exceed
one for every ten office employees.






556


3. Provided, further, that learners and superannuated or physi-
cally incapacitated employees shall not exceed in any calendar month
five percent (5%) of the total number of employees and shall be
paid at least eighty percent (80%) of the minimum wage. A
learner shall be defined as one who has had no previous experience
in the class of work for which he is employed and may be so classed
for one period of ninety (90) days.
4. This article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
other basis.
5. The hourly wage rates, base piecework rates, or salaries of em-
ployees receiving more than the minimum rates herein prescribed
shall be equitably adjusted, if this has not already been done, and in
no case shall the rates be decreased. Action taken shall be reported
to the Code Authority not. later than fifteen (15) days after the
effective date of this Code and to the Administrator at his request.

ARTICLE V-STATE LAW REQUIREMENTS

Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements than those under
this Code with reference to regulating the age of employees, wages,
hours of work, fire, or general working conditions.

ARTICLE VI-GENERAL LABOR PROVISIONS

1. Employers shall not employ or permit to be employed any
person under the age of sixteen (16) years, provided that no person
under the age of eighteen (18) years shall be employed in a hazardous
occupation. The Code Authority shall report within ninety (90)
days such hazardous occupations to the Administrator.
2. Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from interference, restraint, or coercion of employers of labor,
or their agents, in the designation of such representatives or in
self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization
of his own choosing.
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President for this industry in its approved code.
5. The Code Authority shall require that the pay rolls' of all
employers of the industry contain the names of all employees, show-
ing the number of hours and compensation paid therefore, regardless
of whether the wages of any employee he paid by the employer or
by another employee for services rendered in connection with the
task or production of another employee or employees.
6. No employer shall reclassify employees or duties or occupations
of employees for the purpose of defeating the purposes or provisions
of the Act.






557


7. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
8. All employers shall post copies of the labor provisions of this
code in a conspicuous place accessible to employees.
ARTICLE VII-ORGANIZATION, POWERS, AND DUTIES OF THE CODE
AUTHORITY

1. Organization and Constitution.-There shall forthwith be con-
stituted a Code Authority consisting of three (3) members of the
Board of Trustees of the Institute of Cooking and Heating Appli-
ance Manufacturers, Inc., who shall be elected by said Board.
2. In addition to membership as above provided, there may be from
one to three members without vote, to be appointed by the Admin-
istrator, to serve for a term of from six months to one year from
the date of appointment.
3. The Institute of Cooking and Heating Appliance Manufac-
turers, Inc., shall (1) impose no inequitable restrictions on member-
ship, and (2) submit to the Administrator true copies of its articles
of incorporation, bylaws, regulations, and any amendments when
made thereto, together with such other information as to member-
ship, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
4. In order that the Code Authority shall at all times be truly
representative of the industry and in other respects with the provi-
sions of the Act, the Administrator may prescribe such hearings as
he may deem proper; and thereafter, if he shall find that the 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 Code Authority.
5. Members of the industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and to
participate in the selection of the members thereof by assenting to
and complying with the requirements of this code and sustaining
their reasonable share of the expenses of formulating, putting into
effect, and administering this code. Such reasonable share of the
expenses of formulating, putting into effect, and administering this
code shall be determined by the Code Authority subject to disap-
proval by the Administrator, on the basis of volume of business
and/or such other facts as may be deemed equitable. Failure of
any employer to pay his proportionate share fixed by the Code Au-
thority will deprive him of his participation in the benefits of the
code but will not remove his obligation to pay his due and unpaid
assessments.
6. Nothing in this code shall constitute the members of the Code
Authority partners for any purpose.
7. Powers and Duties.-The Code Authority shall have the fol-
lowing further powers and duties, the exercise of which shall be
reported to the Administrator and shall be subject to his right, on
review, to disapprove any action taken by the Code Authority:
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the industry with the provisions of the
Act.






558


(b) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the code subject to
the approval of the Board of Trustees.
(c) To obtain from members of the industry such information and
reports as are required for the administration of the code and to
provide for submission by members of such information and reports
as the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the Act, which information and reports shall be
submitted by members to such administrative and 'or government
agencies as the Administrator may designate; provided that nothing
in this code shall relieve any member of the industry of any exist-
ing obligations to furnish reports to any government agency. No
individual reports shall be disclosed to any other member of the
industry or any other party except to such governmental agencies
as may be directed by the Administrator.
(d) To use the Institute of Cooking and Heating Appliance Manu-
facturers, Inc., and other agencies as it. deems proper for the carry-
ing out of any of its activities provided for herein; provided that
nothing herein shall relieve the Code Authority of its duties or re-
sponsibilities under this code and that the Institute of Cooking and
Heating Appliance Manufacturers, Inc., and other agencies shall at
all times be subject to and comply with the provisions hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other codes,
if any, as may be related to the industry.
(f) To secure from members of the industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authority and its activities.
(g) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the industry
who have assented to, and are complying with, this code.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.

ARTICLE VIII-COSTS AND PRICES

1. No member of the industry shall sell any commodity at a price
below his own allowable cost except that any member of the indus-
try may meet the price competition of any one whose allowable costs
under this provision are lower. Permission to exercise this option
of selling below allowable cost shall be presumed to be granted when
a manufacturer has reported to the Code Authority the fact that
he must sell below cost and shall cite the specific competition. Al-
lowable cost shall be determined in accordance with the standard
cost principles formulated by the Code Authority with the approval
of the Administrator.
2. Within ten days after the effective date of this code, every mem-
ber of the industry shall file with the confidential agent designated
by the Code Authority his sales prices, discounts, and terms then
in effect; such sales prices, discounts, and terms must provide rea-






559


sonable differences for each class of buyer. Every member of the
industry must file with the confidential agent any reductions made
such sales prices, and any changes in discounts, terms, or classifica-
tions, ten days prior to the date on which they become effective.1

ARTICLE IX-TRADE PRACTICES
The practices and methods set forth in the following paragraphs
in this Article IX are hereby designated as unfair methods of compe-
tition and the indulgence by any member of the industry in any of
the same shall be a violation of this code:
1. Consignment.-Making any agreement or contract after the ef-
fective date of this code, the effect of which will amount to the sale
and/or delivery of cooking and heating appliances on consignment
and to discontinue forthwith any consignment arrangements now in
effect.
2. False Billing.-No member of the industry shall knowingly
withhold from or insert in any quotation or invoice any statement
that makes it inaccurate in any material particular.
3. Underselling reported prices discounts, and terms.-Offering
any product of the industry for sale at less than his sales prices, dis-
counts, and terms, as filed with the confidential agent designated by
the Code Authority.
4. Redating.-Allowing terms of payment more liberal than those
stated in the original sales terms of each member of the industry as
filed with the confidential agent designated by the Code Authority.
This applies to deliberate action on the part of a member of the
industry who allows a purchaser to keep goods to be paid for when
sold, and does not apply to a manufacturer who makes an actual
effort to collect on same.
5. Repurchase Agreements.-Selling or offering to sell any mer-
chandise with a repurchase agreement.
6. Allowance for Returned Goods.-Acceptance of returns of obso-
lete goods or overstock from a customer in exchange for new stocks
or other values.
7. Excessive Allowance for Second-hand Goods.-Purchasing or
allowing credit for second-hand merchandise at an amount greater
than its fair wholesale market value, except when merchandise of his
own manufacture is returned because of defect in design or operation.
8. Rebates.-The extension to certain purchasers of advertising
allowances, special services, privileges, or discounts or the payment
or allowance of rebates, refunds, commissions, credits, or unearned
discounts whether in the form of money or otherwise, not extended
to all purchasers on like terms and conditions.
9. Premiums.-Giving premiums in the sale of merchandise.
10. False Description.-The false description of any product of the
industry which has the tendency to mislead or deceive customers or
prospective customers, whether as to grade, quality, type, origin, size,
capacity, finish, or preparation of any product of the industry, or
otherwise.
11. Commercial Bribery.-No member of the industry shall give,
permit to be given, or directly offer to give, anything of value for
SSee paragraph 2 of order approving this Code.






560


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 repre-
sented party, without the knowledge of such employer, principal, or
party. Commercial bribery provisions shall not be construed to pro-
ibit free and general distribution of articles commonly used for ad-
vertising except so far as such articles are actually used for commer-
cial bribery as hereinabove defined.
12. Excessive Induccenents.-To extend excessive inducements or
entertainment to customers, or prospective customers, which tend to
add unduly to sales costs.
13. Defamiation.-The defamation of competitors by falsely im-
puting to them inability to perform contracts, questionable credit
standing, or by other false representation or by the false disparage-
ment of the grade or quality of their goods.
14. Threat of Litigation.-The publishing or circularizing of un-
founded threats of suits for infringement of patents or trade marks
or of any legal proceedings without cause which tend to have the
effect of harassing competitors or intimidating their customers.
15. Misrepresentation or False or Misleading Advertising.-The
making or causing or permitting to be made or published any false,
materially inaccurate or deceptive statement by way of advertising
or otherwise, whether concerning the grade, quality, type, origin,
size, capacity, finish, or preparation of any products of the industry,
or the credit terms, values, policies, or services of any member of
the industry, or otherwise, having the tendency and capacity to
mislead or deceive customers or prospective customers.
16. Piracy of Trade Marks and Trade Names.-The imitation of
a trade mark, trade name, slogan, or the other marks of identifica-
tion of competitors having the tendency to mislead or deceive.
17. Imitationl of Stoves or Parts.-So long as the maker of any
trade-marked cooking and heating stoves or ranges (or his successor
in business) continues to make and supply repair parts therefore, it
shall be an unfair method of competition for any other person to
make and supply stoves or ranges or parts therefore unless (a) the
name of the maker of such stoves or ranges or repair parts therefore
is plainly marked on each part (or if this is impracticable, on the
package or tag) and unless (b) said stoves or ranges or parts are
otherwise marked, packaged, and sold without imitative labels, and
in such manner as to clearly indicate to the ultimate user that they
are not made by the maker of the original cooking and heating stove
or range.
18. Disposal of Distress Merchandise.-There shall be no disposal
of dropped lines, seconds, excess inventories, or distress merchandise
except in accordance with the procedure to be outlined by the Code
Authority subject to disapproval by the Administrator for the pro-
tection of the owners and to promote sound and stable business con-
ditions.
19. Interference with Contractual Relations.-Maliciously induc-
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 with or obstructing the performance of any such con-
tractual duties or services.






561


20. Splitting Commissions.-Every employer using salesmen who
are compensated wholly or partially on a commission basis shall by
contract require each such salesman to agree that no part of the
commission earned by him in connection with the sale of any
product of the cooking and heating appliance manufacturing indus-
try shall be paid or allowed to any purchaser.
21. Excessive Allowance of Literature.-To furnish literature to
customers without charge, except in modest quantities for distribu-
tion.
ARTICLE X-SUPPLEMENTAL CODE OPTION

It is understood that trade groups or groups of manufacturers
representing a substantial part of any specific subdivision of this
industry, may formulate supplementary codes of fair competition
defining specifically the subdivision and covering such regulations as
are considered advisable by'them. However, all employment provi-
sions of such supplementary codes shall conform with this basic
code. Such codes when approved by the President shall have the
same force and effect as this basic code.

ARTICLE XI-MODIFICATION

1. This code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions 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.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modifications to be based upon application to the Administrator and
such notice and hearing as he shall specify, and to become effective
on approval by the President.
ARTICLE XII-MONOPOLIES, ETC.
No provision of this code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.

ARTICLE XIII-EFFECTIVE DATE
This code shall become effective on the second Monday after itsa
approval by the President.

ARTICLE XIV-EXPIRATION DATE
The expiration date of this code shall be June 16, 1935, or the:
earliest date prior thereto on which the President or the Congress
shall by joint resolution declare that the emergency recognized byj
Title I of the Act has ended.
Approved Code No. 236.
Registry No. 1629-1-02.




UNIVERSITY OF FLORIDA
Ii3ll 1262 08584 780311 I I l tll
3 1262 08584 7803




Full Text

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Approved Code No. 236 Registry No. 1629-1-02 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITIO,N FOR THE COOKING AND HEATING APPLIANCE MANUFACTURING INDUSTRY AS APPROVED ON JANUARY 30, 1934 WE DO OUR PART I l \ .. ,.,. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1934 I / { For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents V

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This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building . Charleston, S.C.: C hamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 Fir st National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, Ind.: C hamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Ca lif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La. : Room 225-A, Customhouse. New York, N.Y.: 734 Customhouse. Norfolk, Va.: 4 0 6 East Plume Street. Philad e lphia , Pa. : 422 Commercial Trust Building. Pittsburgh, Pa.: C hamber of Commerce Building. Portl and, Oreg.: 215 New Post Office Building. St. Louis, Mo .: 506 OliYe Street. San Francisco, Calif . : 310 C ust omhouse . Seattle, Wash. : 809 Federal Offi ce Building.

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Approved Code No. 236 CODE OF FAIR COMPETITION FOR THE COOKING AND HEATING APPLIANCE MANUFACTURING INDUSTRY As Approved on January 30, 1934 ORDER APPROVING CODE OF FAIR COMPETITION FOR THE COOKING AND HEATING APPLIANCE MANUFACTURING 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, for approval of a Code of Fair Competition for the Cooking and Heating Appliance Manu facturing Industry, and hearings having been duly held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed to the President: NOvV, THEREFORE, on behal:f 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 President, 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 Code complies in all respects with the pBrtinent provisions and will promote the policy and pur poses of said Title of said Act; and do hereby order that said Code of Fair Competition be and it is hereby approved; provid e d , how ever, that the provisions of Article VIII, ( Section 2), insofar as they prescribe a waiting period between the filing with the Code Authority and the effective date of revised price lists or revised 36708-313-154--34 (549)

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550 f terms and conditions of sale be and they are hereby stayed pending my further Order either within a period of sixty days from the effec tive date of this Code or after the completion of a study of open price associations now being conducted by the National Recovery Administration. HUGH s. JOHNSON, Adm , ini'strcdor for Industrial Recovery. Approval Recommended: w. A. HARRIMAN' Division Admiriisfrator. WASHI -GTON, D.C., January 30, 1934

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The PRESIDENT, The White House. Srn: This is a report on the Code of Fair Competition for the Cooking and Heating Appliance Manufacturing Industry, and on the hearing conducted thereon in Washington, D.C., on October 25, 1933, in accordance with the provisions of the National Industrial Recovery Act. PROYI S IONS REGARDING HOURS AND WAGES Employees are permitted to work forty ( 40) hours per week and eight (8) hours per day and, during ten (10) weeks during a twelve (12) months' period, they are permitted to work forty-eight (48) hours per week. Exceptions are provided that permit longer hours for watchmen, shipping crews, foundry service men, office employees during inven tory periods, executives and supervisory employees receiving more than $35.00 per week, and outside demonstrators, service crews, and salesmen and for all workers during emergencies. The wage rate for hours worked overtime shall be one and one half the normal rate. The minimum rate of pay shall be forty ( 40) cents per hour for male workers and thirty-five (35) cents per hour for female workers, excepting the States of Virginia, West Virginia, ICentucky, Ten nessee, North Carolina, South Carolina, Georgia, Florida , Alabama, Mis sissippi, and Loui siana, where the minimum rate shall be twenty seven and one half (27) cents per hour. Female employees doing substantially the same work as male emp loy ees shall receive the same wage. The minimum rate for office workers shall be $15.00 per week in cities of over 500,000 popu lat ion with lesser rates for sma:ller cities with the limit of $12.00 per week in towns of less than 2,500 population. Office bors and girls, incapacitated employees, and learner s, sha ll be paid not le ss than eighty (80) percent of the minimum wage, but the number of such employees is limited. The wage rates of those receiving more than the minimum rates are to be adjusted equitably and in no case shall the rates be de creased. No emp l oyees are to be reclassified so as to defeat the purpose of the Act. Persons under sixteen ( 16) year of age shall not be employed and none under eighteen (18) years at hazardous occupations. PROYISIONS FOR UPPLEMENTAL CODES It is provided that subclivjsions of the industry may formulate supplementary codes but the employment provisions shall conform with this basic code. (551)

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552 ECONOMIC AND STATIST I CAL :MATERIAL The industry is widely distributed over the country although it is estimated that three fourths of it is l ocated in the J orthern wag e district and one four th in the Souther n wage district. The indu try has furnished statistical information showing t h a t in June 1933 wage rates for common labor had been reduced twe l ve (12) cents per hour in both the Northern and Southern districts , from forty-six ( 46) cents and twenty-seven ( 27) cents per hour re spectively from the wage rates of 1929. Under the code, one half of the reduction in the Northern wage district will be regained and the increase in the Southern "age di trict will more than compensat e the reduction. There are no data on the number of workers employed prior to ,June 1933, but it is estimated that under the code employment wi ll be increa ed fro1n 14,000 to 15,500, an improvement of ten percent . It is also estimated that the weekly pay ro ll of the industry w ill increa e sixteen percent under the code. FINDI as The Deputy Administrator in his final report to me on said Cod e having found as herein set forth and on the bu is of all the pr ceedings in this matter: I find that: (a) Said Code is well designed to promote the policies and pur poses of Title I of the National Industrial Recovery Act, i nclud i ng removal of obstructions to the free flow of interstate and forei gn commerce which tend to diminish the amount thereof and will p ro vide for the general welfare by promoting the organization of ind u s try for the purpose of cooperative action among the trade group , by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by elimina ing unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoid ing undue restriction of production ( except as may be temporar il y required), by increasing the consumption of industria l and agr i c ul tural product through increasing purcha ing power, by reduc i ng and relieving unemployment, by impro,ing standards of labor, and by otherwise rehabilitat i ng industry . (b) Said Industry normally employs not more than 50,000 em ployees; and is not classified by me as a major industry. ( c) The Code as approved comp l ies in a ll respects with the per ti nent provisions of said Tit l e of said Act, including witho u t li mi t a tion Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 the r eo f ; and that t he app li ca n t g roup i an indu trial grou:(> truly representative of the aforesaid I ndust r y ; and that said group imposes no inequitable restrictions on admiss ion to membership therein . ( d) The Code is not designed to and w ill n ot permit m o nopo li es or monopolist i c pract i ces.

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553 ( e) The Code is not designed to and will 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 Code. For these reasons, therefore, I have approved this Code. Respectfully, JANUARY 30, 1934. HUGHS. JOHNSON, Administrator.

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CODE OF FAIR COMPETITION FOR THE COOKING AND HEATING APPLIANCE MANUFACTURING INDUSTRY ARTICLE I-P URPOSES To effect uate the policies of Title I of the National Industrial Recovery Act this Code is subm itted as a Code of Fair Competi tion for the Cooking and H eating Appliance ::Manufacturing Indu stry, and upon apprm Ta l by th e President, its provisions shall be the standards of fair competit ion for such industry and shall be binding upon eYery member thereof . ARTICLE II-DEFINITIONS 1. The term Cooking and Heating Appliance Manufacturing In du try as used herein includ es the manufacture and ale of all designs of cooking and heating stove an --: l ranges and parts thereof, using coal and wood or combinations of various fu e ls. 2. The term ':Member of the Industr y" include s but without limit ation, any individual, partnership, as soc iation, corporatio n, or other form of enterprise engaged in the indu st ry, either as an em ployer or on his or it s own b eh alf. 3. The term " employee " as u ed herein include any and all per s ons engaged in the in du try, however compensated, except a 1\'Iember of the Industry. 4. The terms 'President", 'Act', and 'Administrator" as used her e in re pectively mean. the Pre. iclent of the United States. the J ational Industrial Recovery Act and the Administrator for In du s trial Recovery. 5 . ' Population ' for the purposes of this code hall be determined by r e ference to the late t Federal census. ARTICLE III-Ho Rs 1. M axinium , H ours.-N o employee shall be permitted. to work in exc ess of forty ( 40) hours in any one week or eight ( 8) hours in an y twenty-four (24) hour period except as herein otherwise pro vided, but with the right to work a maximum of forty-eight ( 48) hours per week for any ten (10) weeks during a twelve (12) months period. (5 5 4)

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555 2. Exceptions as to Ho 1 w ' s. -(a) Provided, hO\vever, that em ployees working on emergency n1aintenance or emergency repair work involving breakdown or protection o:f life or property may work ten percent (10%) additional hOltrs. (b) Provided further, that shipping crew and foundry service men whose duties are servicing the cupola an
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556 3. Provided, further, that l earners and superannuated or phy cally incapacitated employees sha ll not exceed in any calendar month frve percent ( 5%) of the t-Otal number of employee and shall be paid at least eighty percent ( 0%) of the minimum wage. A learn er shall be defined as one who has had no previous experience in the cla s of work for which he is employed and may be so cla ssed for one period of ninety (90) days. 4. Thi article establi h es a mini1num rate of pay, regardle ss of whether an employee is compen atBd on a time-rate piecework, or other basi . 5. The hourly wage rates, ba e piecework rates, or sa laries of em ployees receiving more than the minimum rates herein prescribed shall be equitably adju s ted, if this has not already been done, and in no case shall the rates be decreased. Action taken shall be reported to the Code Authority not later than fifteen ( 15) days after the effective date of this Code and to the Administrator at his request. ARTICLE V-STA.TE LA w REQUIREl\IE:NTS Within each State this Code shall not supersede any laws of such State imposing more stringent requirements than those under this Code with reference to regulating the age of employees, wages, hour of work, fire, or general working conditions. ARTICLE \ I-GENERAL LABOR PROVISIONS 1. Employers shall not employ or permit to be employed any person under the age of sixteen (16) years, provided that no person under the age of eighteen (18) years shall be employed in a hazardous occupation. The Code uthority hall report within ninety (90) days such hazardous occupations to the Administrator. 2. Employees shall have the riaht to organize and bargain col lectiv ely through repre entatfres of their own choosing, and shall be free from interference re traint or coercion of employers of labor, or their agents, in the designation of such repre entat ives or in self-organization or in other concerted activities for the pu1pose of collective bargaining or other mutual aid or protection. 3. No employee and no one eeking emp l oyment hall be required as a condition of employment to join any company union or to re frain from joining organizing, or a sisting a labor organization of his own choosing . 4. Employers hall c mply with the maximum hours of labor, minimum rate s of pay and other conditions of employment approved or pre sc ribed by the Pre ident for thi indu try in i t appro-ved code. 5. The Code Authority ... hall require that the pay rolls of all employer of the indu try contain th e name of all employees, show ing the number of hour and compen . ation paid therefor, regardless of wh et her the wag of an~ employee be paid by the employer or by another emplo ee for ervice rendered in connection with the ta s k or production of another employee or employee . 6. o employer hall reclas i fy employee or duties or occupations of employee for the purpose of defeating th e purposes or provisions of the Act.

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557 7. Female employees perform.ing substantially the same work as male employees shall receive the same rate of pay as male employees. 8. All employers shall post copies of the labor provisions of this code in a conspicuous place acc ess ible to employees. ARTICLE VII-ORGANIZATION' POWERS, AND DUTIE S OF THE CODE AUTHORITY l. Organization and Oonstitution.-There shall forthwith be con stituted a Code Authority consisting of three (3) members of the Board of Trustees of the Institute of Cooking and Heating Appli ance Manufacturers, Inc., who shall be elected by said Board. 2. In addition to membership as above provided, there may be from one to three members without vote, to be appointed by the Admin istrator, to serve for a term of from six months to one year from the date of appointment. 3. The Institute of Cooking and Heating Appliance :Manufac turers, Inc., shall (1) impose no inequitable restrictions on member ship, and (2) submit to the Ad1ninistrator true copies of its articles of incorporation, bylaws, regulations, and any amendments when made thereto, together with such other information as to member ship, organization, and activities as the Administrator may deem nece ss ary to effectuate the purposes of the Act. 4. In order that the Code Authority shall at all tin1es be truly representative of the industry and in other respects with the provi sions of the Act, the Administrator may prescribe such hearings as he may deem proper; and thereafter, if he shall find that the 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 Code Authority. 5. Members of the industry shall b~ entitled to participate in and share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by assenting to and complying with the requirements of this code and sustaining their reasonable share of the expenses of formulating, putting into effect, and administering thi s code. Such rea s onable s hare of the expenses of formulating, putting into effect, and admini tering this code shall be determined by the Code Authority subject to disap proval by the Administrator, on the ba s is of volume of business and/or such other facts as may be deemed equitable. Failure of any employer to pay his proportionate share fixed by the Code Au thority will deprive him of his participation in the benefits of the code but will not remoYe his obligation to pay his due and unpaid assessments. 6. Nothing in this code shall constitute the members of the Code Authority partner s for any purpose. 7. Pow e n and Duti es .-The Code Authority shall have the fol lowing further powers and duties, the exercise of which shall be reported to the Administrator and shall be subject to his right, on review, to disapprove any action taken by the Code Authority: (a) To insure the execution of the provisions of this Code and provide for the compliance of the industry with the provisions of the Act.

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558 (b) To adopt bylaws and rules and regulations for its procedure and for the administration and enforcement of the code subject to the approval of the Board of Trustees. ( c) To obtain from members of the industry such information and reports as are required for the administration of the code and to provide for submis s ion by members of such information and reports as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act, which information and reports shall be submitted by members to such administrative and / or government agencies as the Administrator may designate; provided that nothing in this code shall relieve any member of the industry of any exist ing obligations to furnish reports to any government agency. No individual reports shall be disclosed to any other member of the industry or any other party exce_pt to such governmental agencies as may be directed by the Admini s trator . ( d) To use the Institute of Cooking and Heating Appliance l\1anu facturers, Inc., and other agencies as it deems proper for the carry ing out of any of its activities provided for herein; provided that nothing herein shall relieve the Code Authority of its duties or re sponsibilities under this code and that the Institute of Cooking and Heating Appliance l\1anufacturers, Inc . , and other agencies sha ll at all times be subject to and comply with the provisions hereof. ( e) To make recommendations to the Adrn.inistrator for the co ordination of the administration of this Code with suc h other codes, if any, as may be related to the industry. (f) To secure from members of the industry an equitable and proportionate payment of the reasonable expenses of maintaining the Code Authority and its activities. (g) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those members of the industry who have assented to, and are complying with, this code. (h) To recomn1end to the Administrator further fair trade prac tice provisions to govern members of the industry in their relations with each other or with other industries and to recommend to the Administrator measures for industrial planning, including stab iliza tion of employment. ARTICLE VIII-CosTs AND PRICES 1. No member of the industry sha ll se ll any commodity at a price below his own allowable cost except that any member of the indus try may meet the price competition of any one whose allowable costs under this provision are lo wer. Permission to exercise this option of selling below allowable cost shall be presumed to be granted when a manufacturer has reported to the Code Authority the fact that he must sell below cost and shall cite the specific competition. Al lowable cost shall be determined in accordance with the standard cost principles formulated by the Code Authority with the approval of the Administrator. 2. Within ten days after the effective date of this code, every mem ber of the industry shall file with the confidential agent designated by the Code Authority his sales prices, discounts, and terms then in effect; such sales prices, discounts, and terms n1ust provide rea

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559 sonable differences for each class of buyer. Every member of the industry must file with the confidential agent any reductions made such sales prices, and any changes in discount s, terms, or classifica tions ten days prior to the date on which they become effective. 1 ARTICLE IX-TRADE PRACTICES The practices and methods set forth in the following paragraphs in this Article IX are hereby designated as unfair methods of compe tition and the indulgence by any member of the indu s try in any of the ame shall be a violation of this code: 1. Oonsignment .Making any ag ree ment or contract after the ef fective date of this code, the effect of which will amount to the sale and / or delivery of cooking and heating appliances on consignment and to discontinue forthwith any consignment arrangements now in effect. 2. False Billing.-No me1nber of the industry shall knowingly withhold fron1 or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 3. Underselling reported prices discounts, and terms.-Offering any product of the industry for safe at less than his sales prices, dis counts, and terms, as filed with the confidential agent designated by the Code Authority. 4. Redating.-Allowing terms of payment more liberal than those stated in the original sales terms of each member of the industry as filed with the confidential agent designated by the Code Authority. This applies to deliberate action on the part of a member of the industry who allows a purchaser to keep goods to be paid for when sold, and does not apply to a manufacturer who makes an actual effort to collect on same. 5. R e purchase Agreenients.-Selling or offering to sell any mer chandise with a repurchase agreement. 6. Allowance for R e turned Goods.-Acceptance of returns of obso lete goods or overstock from a customer in exchange for new stocks or other values. 7. Ex ce ssive .Allo wance for Second-hand Goods .-Pu rchasing or allowing credit for sec ond-hand merchandise at an amount greater than its fair whole ale mark et value, except when mer c handise of his own manufacture is returned becau se of defect in design or operation. 8. Rebat es .-The extension to certain purchasers of adverti sin g allowances, special se rvic es, privileges, or discounts or the payment or allowance of rebates, refunds, comn1issions, credits, or unearned discounts whether in the f o rm of money or otherwi se , not extended to all purcha ers on like terms and conditions. 9. P1e1niunis.-Giving premiums in the sale of merchandise. 10. False D escri ption.-The false description of any product of the indu stry which has the tendency to mi lead or deceive cus tomers or prospective customers, whether as to grade, quality , type, origin, size, capacity, fini s h , or preparation of any produ ct of the industry, or otherwi e. 11. Oomml'rcirtl Brib er y.-No member of the industry shall give, permit to be given, or directly offer to give, anything of value for 1 See paragraph 2 of order approving this Code.

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560 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 repre sented party, without the knowl edge of such employer, principal, or party. Commercial bribery provisions sha ll not be construed to pro hibit free and general distribution of articles commonly used for ad vertising except so far as such articles are actually used for corruner cial bribery as h ereinabove defined. 12. Excessive I nduce1nents .-To exten d excessive inducements or entertainment to customer , or prospective custome rs, which tend to add undulv to sa les costs. 13. Defcnnation.-The defamation of competitors by falsely im puting to them inability to perform contracts, questionable credit standing, or by other false representation or by the fal e disparage ment of the grade or quality of their goods. 14. Th reat o f Litigation.-The publishing or circularizing of un foun ded threats of suits for infringement of patents or trade marks or of any legal proceedings without cause which tend to have the effect of harassing competitors or intimidating their customers. 1 5. Misrepres e ntation 01 F alse or 111 isleadin g Advertising.-The making or causing or pennitting to be made or published any false, materially inaccurate o r deceptive statement by way of advertising or otherwise, whether concerning the grade, quality, type, origin, size, capacity, finish, or preparation of any produ c ts of the industry, or the credit term , values, policies, or services of any member of the indu stry, or otherwise, having the tendency and capacity to misle ad or deceive c u tomer or pro pecti ve customers. 16. Pi racy of T1ade Marks (JJnd Trade N a1nes.-The imitation of a trade mark, trade name, sl ogan, or the other marks of identifica tion of competitors having the tendency to mislead or deceive. 17. b nitation of Stoves or Part s. -So long as the maker of any trade-marked cooking and h ea ting stoves or ranges ( or his successor in bu s ine ss ) conti nues to make and supply repair parts therefor, it shall be an unfair method of competition for any other person to make and s upply stoves or ranges or parts therefor unless (a) the name of the maker of such stoves or ranges or repair parts therefor is plainly marked on each part ( or if this is impracticable, on the package or tag) and unless (b) said stoves or ranges or parts are otherwise mark ed, packaged, and sold without imitative labels, and in such manner as to clearly indicate to the ultimate user that they are not made by the maker of the original cooking and heating stove or range. 18. D isposal of Distress M erchandise.-There shall be no disposal of dropped lines, seconds, excess inventorie s, or distress merchandise except in accordance with the procedure to be outlined by the Code Aut!'10rity subject to disapproval by the Administrator for the pro tect10n of the O"TT"ners and to promote sound and stable business con ditions. 19. Int er f erence with Oont1actual R. elations .-:Maliciously induc 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 with or obstructing the perforn1ance of any such con tractual duties or services.

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561 20. Splitting Conunissions.-EYery em . ployer using salesmen who are compensated wholly or partially on a commission basis shall by contract require each such salesman to agree that no part o: the commission earned by him in connection with the sale o: any product o: the cooking and heating appliance manu:facturing indus try shall be paid or allowed to any purchaser. 21. Excessive Allowance of Literature.-To furnish literature to customers without charge, except in modest quantities :for distribu tion. AnTI LEX' urPLEME -TAL CooE OPTION It is understood that trade groups or groups o: manufacturers repre senting a substantial part of any specific subdivision of this industry, may formulate supplementary codes of fair competition defining specjfically the subdivision and co ering such regulations as are considered advisable by them. However, all employment provi sions of such supplementary codes shall conform with this basic code. Such codes when approved by the President shall have the same force and effect as this basic code . ARTICLE XI-110DIFICATION 1. This code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the pro visions of subsection (b) of Section 10 o: the Act from time to time to cancel or modify any order, approval, license, rule or regulation issued under said Act. 2. This Code, except as to provisions required by the Act, m . ay be modified on the basis of experience or changes in circumstances, such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become effective on approval by the President. ARTICLE XII-1'1oNOPOLIEs, ETc. No provision o: this code shall be so applied as to permit monop olies or monopolistic practices, or to eliminate, oppress, or discrimi nate against mall enterpri es. ARTICLE XIII-EFFECTIYE DATE This code hall become effective on the econd Monday aft~r its ! approval by the President. ' ARTICLE XIV-EXPIRATION DATE The expiration date of this code shall be June 16, 1935, or the ' earlie t date prior thereto on which the President or the Congress / shall by joint re sol ution declare that the emergency recognized by: 1 Title I of the Act has ended. Approved Code No. 236. Regirstry :ro . 1629-1-02. 0

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