Approved Code No. 84-Supplement No. 14 Registry No. 1129-1-14

NATIONAL RECOVERY ADMINISTRATION

SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE

NON-FERROUS HOT WATER TANKMANUFACTURING INDUSTRY

(A Division of the Fabricated Metal ProductsManufacturing and Metal Finishing

and Metal Coating Industry)

AS APPROVED ON APRIL 4, 1934

If, MEMBER

U.S.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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

This publication is for sale by the Superintendent of Documents, GovernmentPrinting Ollice, Washington, D.C., and by district offices of tLe Bureau of Foreignand Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Offie 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.Clevelind, Ohio: Chamber of Commerce.Dallas, Tex.: Chamber of Commeree Building.Detroit, Mich.: 801 First National Bank Building.Houston, Tex.: Chamber of Commerce Building.Indianapolis, Ind.: Chamber of Commerce Building.Jacksonville, Fla.: Chamber of Commerce Building.Kansas City, 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. 84-Supplement No. 14

SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

NON-FERROUS HOT WATER TANKMANUFACTURING INDUSTRY

As Approved on April 4, 1934

ORDER

NPrROvING SUPPLEMENTARY CoDE OF FAIR COMPETITION FOR THE NoN-FERROUS HOT WATER T'IANK 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 fullcompliance with the provisions of Title I of the National IndustrialRecovery Act, approved June 161 1933, and in accordance with theprovisl()ins of Section I of Article VI of the Basic Code for theFabricated Metal Products Mainufacturingi and Metal Finishing andMetal Coating Industry, approved November 2, 1933, for approvalof a Supplementary Code of Fair Competition for the Non-FerrousHot Water Tank ]L Manufacturing- Industry, and hearing having beenduly held thereon ; and the annexed report on said SupplementaryCode. containing find ingrs with respect thereto, having beei made anddirected to the President:

NOW, THEREFORE, on behalf of the President of the UnitedStates, I, Hugh S. Johnson, Administrator for Industrial Recovery,pursuant to authority vested in me by Executive Orders of thePresident, including Executive Order No. 6.543-A, dated December30, 1933, and otherwise; do hereby incorporate by reference saidannexed report and do find that said Supplementary code compliesin all respects with the pertinient provisions and will promote thepolicy and purposes of said Title of said Act; and do hereby orderthat said Supplementary Code of Fair Competition be and it is herebyapproved; provided, however, that the provisions of Article VII,Paragraph (a), insofar as they prescribe a waiting period betweenthe filing with the Code Authority and the effective (late of revisedprice lists or revised terms and conditions of sale be and they arehereby stayed pending my further Order either within a period of512400 -482-19-34 (1)

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sixty days from the effective date of this Supplementary Code orafter the completion of a study of open price associations now beingconducted by the National Recovery Admiiistration.

Hucr KS. JOHNSoN,Administrator for hidusf (ial Reco very.

Approval recommended:A. R. GLANCY,

Division Administrator.

WAS[INGTON, D.C.,April 4, 1934.

REPORT TO THE PRESIDENT

The PRESIDENT,The Wlte 71 House.

Sm.: This is a report on the Supplementary Code of Fair Com-petition for the Non-Ferrous Hot Water Tank Manufacturing In-dustv. a division of the Fabricated Metal Products Manufacturingand Metal Finishing and Metal Coating Industry, the hearing havingbeen conducted thereon in Washington, D.C.. January 19. 1934, inaccordance with the provisions of Title I of the National Indus-trial Recovery Act.

GENERAL STATEMENT

The Non-Ferrow Is Hot Water Tank Manufacturing Industry,being truly representative of this division of the Fabricated MetalProducts Manufacturing and Metal Finishing and Metal CoatingIndustry, has elected to avail itself of the option of submitting aSupplementary Code of Fair Competition. as provided for in Sec-tion 1 of Article VI of the Basic Code, for the Fabricated iMetalProLiducts ?Manufacturinr and Metal Finishing and Metal CoatintgIndus-tr approved by you on1 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-

ple~aentarv Code.Article III. This Indulstry is a division of the Fabricated Metal

Products Maniufacturing and Metal Finishingy and Metal CoatingIndustry and the labor provisions of its Basic Code, as approvedNovenmbcr 2, 193. are the labor provisions Of this SupplementaryCode.

Article IV (-talihes a Suipplemetary Code Aithoritv conisist-

int of live (7) members to be elected by the members of die Tidis-try at a mweting called by the Temporary Snpplementary Code Al-thority, and gives the Administrator the authority to api int one ad-ditional member without vote and provides machinery for obtainingstatistics and the administration of the Supplementary Code.

Article V provides for an accounting systemn and methods of costfindin g and or estimating.

Article VI piovides for deterniiiiing the lowest reasonable cost ofthe prodicits of this Industry.Article VII provides methods of setting up and revising price lists.Article VIII sets forth the unfair trade practices of this Supple-mentary Code which has been especially designed to offset unfaircompetition in this division of the Industry.Article IX contains the mandatory provisions contained in Section10 (b) and also provides for the submission of proposed amendmentsto the Supplementary Code. (3)

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Article X recognizes that price increases be limited to actual addi-tional increase in the seller's costs.

Article XI provides against monopolies and monopolistic practices.Article XII states the effective date and duration of this Supple-

mientary Code.FINDINGS

The Assistant Deputy Administrator in his final report to me onsaid Supplementary Code having found as herein set forth and onthe 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 RecoveryAct, including removal of obstructions to the free flow of interstateand foreign commerce which tend to diminish the amount thereofand will provide for the general welfare by proinmtingi the organiza-tion of industry for the purposes of cooperative action among thetrade groups, by inducing and maintaining' united action of labor andmanagement under adequate govermnental sanctions And supervi-sion, by eliminatintg unfair competitive practices, by promoting thefullest possible utilization of the present productive capacity of in-du-tr.jes, by avoiding undue restriction of production (except as maybe temporarily required), by increasing the consumption of indus-trial and agricultural products through increasing purchasing power.by reducing and relieving unemployment, by improving standardsof labor, and by otherwise rehabilitating industry.

(b) Said Industry normally employs not iore than 50,000 em-ployees; and is not classified by me as a major industry.

(c) The Supplementary Code as approved complies in all respectswith the pertinent provisions of said Title of said Act, includingwithout limitation Subsection (a) of Section 3, Subsection (a) ofSection 7, and Subsection (b) of Section 10 thereof; and that theapplicant group is an industrial group truly representative of theaforesaid Industry; and that said association imposes no inequitablerestrictions on admission to membership therein.

(d) The Supplementary Code is not designed to and will not per-mit monopolies or monopolistic practices.

(e) The Supplementary Code is not designed to and will not elini-nate or oppress small enterprises and will not operate to discriminateagainst them.

(f) Those engaged in other steps of the economic process have notbeen deprived of the right to be heard prior to approval of saidSupplementary Code.

For these reasons, therefore, I have approved this SupplementaryCode. Respectfully, HUGH S. JOHNSON,Admin istrator.APRIL 4, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FORTHE NON-FERROUS HOT WATER TANK MANUFAC-TURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND

METAL FINISHING AND METAL COATING INDUSTRY

ARTICLE I-PURPOSES

To effectuate the policy of Title I of the National IndustrialRecovery Act, the following provisions are established as the Sup-plementary Code of Fair Competition for the Non-Ferrous HotWater Tank Manufacturing Industry, pursuant to Article VI ofthe Basic Code of Fair Competition for the Fabricated Metal Prod-ucts Manufacturing and Metal Finishing and Metal Coating Industryapproved by the President of the United States on the second day ofNovember, 1933, and the provisions of this Supplementary Code shallbe the Standard of Fair Competition for and shall be binding uponevery member of the Industry.

ARTICLE II-DEFINITIONS

The term "Non-Ferrous Hot Water Tank Manufacturing In-dustry " hereafter referred to as the " Industry " is defined to meanthe manufacture for sale of copper and other non-ferrous metalrange boilers, storage tanks and tanks for automatic and non-auto-matic water heaters for working pressure of over fifty (50) poundsper square inch restricted to sizes not exceeding one hundred nineteen(119) gallons' capacity.

The term " member of the Industry " as used herein, includes, butwithout limitation, any individual, partnersliip. association. cor-poration, or other form of enterprise engaged in the Industry, eitheras an employer or on his or its own behalf.

The term employer ", as used herein includes anyone by whomany such employee is compensated or employed.

The term "employee ". as used herein includes anyone engagedin the Industry in any capacity receiving comlpensation for hisservices, irrespective oI the nature or method of paynnt of suchcompensation.

The term "Federation ", as used herein is defined to mean theFabricated Metal Products Federation or its successor.The terms " President ", "Act " and "Administrator " as usedherein shall mean respectively the President of the United States,Title I of the National Industrial Recovery Act, and the Adminis-trator for Industrial Recovery under Title i of said Act.The term " Basic Code ", as used herein, is defined to mean theBasic Code of Fair Competition for the Fabricated Metal Products(5)

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Manufacturing and Metal Finishing and Metal Coating Industry, asapproved by the Pre.sident on the second (lay of November, 1933.

The term Supplementary Code Authority ", as used herein, meansthe agency which is to administer this Supplementary Code as here-inafter provided.

The term "Association ", as used herein, is defined to mean Non-Ferrous Hot Water Tank Manufacturers Association or its successor.

The term " Supplementary Code Committee ", as used herein, isdefined to mean the committee appointed by the Board of Directorsof the Non-Ferrous Hot Water Tank Manufacturers Association topresent this Supplementary Code.

ARTICLE III-EMPLOYMENT PROVISIONS

This Industry is a division of the Fabricated Metal Products Man-ufacturing and Metal Finishing and Metal Coating Industry, andwithout limitation the wage, hour and labor provisions in Article IIIof its Basic Code as approved by the President November 2, 1933,including Section 1 of said Article III by which the provisions ofSub-sections (1), (2), and (3) of Section 7 (a) of Title I of the Actare made conditions of this Code, are specifically incorporated hereinand made a part hereof as the wage, hour and labor provisions of thisSupplementary Code.

ARTICLE IV-ORGANIZATION AND ADMINISTRATION

SECTION 1. Dtiringr the period not to exceed sixty (60) days fol-lowing the effective date, the Supplementary Code Cominittee ofthe Industry shall constitute a temporary Supplementary Code Au-thority until the Supplementary Code Authority is elected. Thereshall be constituted within the sixty-day period a SupplementaryCode Authority consisting of five members to be elected by themembers of the Industry, at a meeting called by the TemporarySupplementary Code Authority, upon ten (10) days' notice sentby registered mail to all known members of the Industry, who mayvote either in person or by proxy. The members of the Supplemen-tary Code Authority first elected shall serve until the followingannual meeting of the Association, and thereafter, members of theSupplementary Code Authority shall be elected at each annualmeeting of the Association to serve until the following annual meet-ing. The members of the Supplementary Code Authority shall beelected in the following manner:

(a) One member who shall be a. member of the Industry by amajority vote of all members of the Industry present in person orby proxy, each member to have one vote.(b) One member who is not a member of the Association by amajority vote of all members of the Industry, present in person orby proxy, each member to have one vote.(c) Three members by a fifty-one percent (51%) vote of mem-bers of the Association, present in person or by proxy, weightedon the basis of one vote for each member and one additional votefor each one thousand (1,000) gallons of sales in the previous calen-dar year reported to the Supplementary Code Authority; Provided,

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however, that no one member may cast more than 33% percent oftotal number of votes cast.

A vacancy in the membership of the Supplementary Code Au-thority may be filled by a majority vote of the remaining membersof the Supplementary Code Authority, provided, however, that theright to vote, as set forth above, shall be subject to the limitationsprovided in Section 4 of this Article.

In addition thereto the Administrator may appoint a member ofthe Supplementary Code Authority who shall be without vote. Therepresentative who may be appointed by the Adininistrator shallbe given reasonable notice of all meetings and may sit at all meetingsof the Supplementary Code Authority.

SECTrON 2. Any Association directly or indirectly participating inthe selection or activities of the Supplementary Code Authorityshall (1) impose no inlequitable restrictions on membership, and (2)shall use due diligence in subimitting to the Administrator true copiesof its Articles of Association, By-Laws., Regulations and any amend-nients when made thereto, together with such other information asto membership, organization, aind activities as may be reasonablynecessary to effectuate the purposes of the Act.

SECTIoN 3. In order that the Supplementary Code Authority shall,at all times, 1 ;e truly representative of the Tndustry and iM otherrespects comply with the provisions of the Act, the Adm inistratormay prescribe such hearings as he may reasonably deem proper; and,thereafter, if he shall find that the Supplemnentary Code Authorityis not truly representative or does not in other respects comply withthe provisions of the Act, may require the removal of any or all themembers thereof and may make an appropriate modification or modi-fications in the method of selection of the Supplementary CodeAuthority.

SECTION 4. The Supplementary Code Authority is hereby cousti-tuted the agency to administer the provisions of this SupplementaryCode, and through a confidential agent. to collect and distribute allstatistical reports of the Industry. With a view to keeping thePresident informed as to the observance or non-observance of thisSupplementary Code, said agency shall collect through its confiden-tial agent such statistics as are called for by the President and/or theAdministrator and send them in such form as the President and/orthe Administrator may require to the Fabricated Metal ProductsFederation, or successor organization as the agency administeringthis said Basic Code.

SECTION 5. Nothing contained in this Code shall constitute themembers of the Supplementary Code Authority partners for anypurpose. Nor shall any member of the Supplementary Code Au-thority be liable in any manner to anyone for any act of any othermember, officer, agent or employee of the Supplementary Code Au-thority. Nor shall any member of the Supplementary Code Au-thority, exercising reasonable diligence in the conduct of his dutieshereunder, be liable to anyone for any action or omission to actunder this Supplementary Code, except for his own wilful misfea-sance or non-feasance.SECTION 6. The Supplementary Code Authority, through its confi-dential agent, shall also, from time to time, furnish to the Basic

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Code Authority, designated in said Basic Code, such informationas may be required to be furnished under the terms of said BasicCode.

SECTION 7. The Supplementary Code Authority shall have all thepowers and duties which shall be necessary or proper to enable it tofully administer this Supplementary Code and to effectuate itspurpose.

Without limitation to the foregoing or any other powers or dutiesprovided for in this Supplementary Code the Supplementary CodeAuthority shall have the following specified duties:

(a) To adopt By-laws and rules and regulations for, and keeprecords of its procedure and for the administration and enforcementof the Supplementary Code.

(b) To use such trade associations and other agencies as it deemsproper for the carrying out of any of its activities provided forheroin, provided that nothing herein shall relieve the SupplementaryCode Authority of its duties or responsibilities under this Supple-mentary Code and that such trade associations and agencies shallat all times be subject to and comply with the provisions hereof.

(c) To make recommendations to the Administrator for the coord-ination of the administration of this Supplementary Code with suchother codes, if any, as may be related to the Industry.

(d) The Supplementary Code Authority shall have general powerand si.upervision over the enforcement of the provisions of this Sup-plementary Code and they are hereby designated as the agency foradministering, supervising and promoting the observance of theprovisions of this Supplementary Code, and shall have power toobtain from all members of the industry such data as may be neces-sary for the complete administration of the provisions of thisSupplementary Code.

(e) Each member of the Industry subject to the jurisdiction ofthis Supplementary Code shall pay to the Supplementary Code Au-thority or its agent his or its proportionate share of the amountnecessary to pay the cost of assembling, analyzing, and publicationof such reports and data and of the maintenance and operation ofthe Supplementary Code Authority in connection with its activitiesrelative to the administration of this Supplementary Code; saidproportionate share to be based upon the net sales and/or such otherequitable factors as the Supplementary Code Authority mayprescribe.

(f) To cooperate with the Administrator in regulating the use ofany NRA insignia solely by those members of the Induistry who haveassented to, and are complying with, this Supplementary Code. Torequire that any article manufactured by those members of the In-dustry who have assented to and are complying with this Supple-mentary Code shall bear the NRA insignia.SECTION 8. If the Administrator shall determine that any actionof a Code Authority or agency thereof may be unfair or unjust orcontrary to the public interest, the Administrator may require thatsuch action be suspended to afford an opportunity for investigationof the merits of such action and further consideration by such CodeAuthority or agency pending final action which shall not be effectiveunless the Administrator approves or unless he shall fail to disap-

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prove after thirty (ays' notice to him of intention to proceed withsuch action in the original or modified form.

SECTION 9. Each neimber of the Industry subject to the jurisdictionof this Code shall comply with all requirements of the Supplemen-tary Code Authority made or taken pursuant to the provisions of thisCode, and the failure of any member of the Industry within a reason-able time so to do, shall constitute a violation of the Code.

ARTICLE V-ACCOUNTING AND COSTING

With respect to that portion of his product which is within theIndihstry, every eployer shall use an accounting system for deter-mining his allowable cost which conforms to the principles of, andis at least as detailed and complete, as, the uniform method of ac-counting, and the uniform method of costing, to be formulated bythe Supplementary Code Authority and approved by the Adminis-trator.

ARTICLE VI-SELLING BELOW COST

No employer shall sell or exchange any product of the Industry,manufactured by him. at a price, or upon terms and conditions,which will result in the purchaser paying' for the goods received,less than the allowable cost thereof to the seller, determined in accord-ance with a uniform method of costing above described; provided,however, that dropped lines, or seconds, or inventories which mustbe converted into cash to meet emergency needs may be disposedof by any employer, at any price and on any terms and conditions,but only if such eniployer, not less than two weeks before such dis-posal. has filed with the Supplementary Code Authority, a state-nent in writing setting forth the fact of, and reasons for, suchproposed disposal; and provided further, that the SupplementaryCode Authority, upon application to it may grant permission toany employer to sell below his costs in order that he may meetcompetitive prices filed in accordance with the provisions of ArticleVII of this Supplementary Code, or to meet competition from prod-ucts of equivalent design, character, quality, or specifications, manu-factured outside the United States.

Provided further that no provision of this Code relating to pricesor terms of selling, shipping or marketing, shall apply to exporttrade or sales or shipments for Export Trade. Unless and to theextent that the Supplementary Code Authority shall otherwise de-termine, the sale of any products by any member of the Industryfor direct shipment to the Phillippines, Hawaii or Porto Rico orother insular possessions of the United States of America shall notbe deenied export trade.

ARTICLE VII-PRICE LISTS(a) Each member of the Industry shall within ten (10) daysafter the effective date of this Supplementary Code, file with theSupplementary Code Authority a net price list, or a price list anddiscount sheet, as the case may be, individually prepared by him,and in such form as the Supplementary Code Authority may pre-scribe showing his current prices, or prices and discounts, and terms

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of sale and payment, and the Supplementary Code Authority shallimmediately send copies thereof to all known manufacturers of suchspecified product. Such price lists shall be available to all interestedbuyers at the office of the Supplenentary Code Authority.

Revised price lists and or discount sheets and/or all other condi-tions of sale may be filed f1rom time to tiine thereafter with the Sup-plementary Code Authority by any manufacturer of such product,to become effective upon the date specified therein, but :uch revisedprice lists and/or discount sheets and 'or all other conditions ofsale shall be filed with the Supplementary Code Authoirity ten (10)days in advance of the effective (late. Copies of such revised pricelists and or discount sheets and/or all other conditions of sale withnotice of the effective date specified, shall be immediately sent to allknown Manufacturers of such product, who are complying with allthe provisions of this Supplementary Code, any of whom may fileif lie so desires, to become effective upon the date when the revisedprice list and or discount sheet and/or all other conditions of salefirst filed shall go into effect, revisions of his price lists, and/ordiscount sheets and/or all other conditions of sale establishing pricesor prices and discounts not lower or conditions of sale not more fa-vorable than those established in the revised price lists and/or dis-count sheets and/or all other conditions of sale first filed. Suchprice lists shall be available to all interested buyers at the officeof the Supplementary Code Authority.,

(b) No member of the Industry shall sell or exchange any prod-uct of the Industry at prices lower or discounts greater or on morefavorable terms of payment than the price lists of such memberon file at the office of the Supplementary Code Authority as aboveprovided.

(c) The Supplementary Code Authority shall have power, on itsown initiative, or on the complaint of any employer, to investi-gate any price or the terms of sale and payment for any productshown in any price list and,/or discount sheet filed with the Sup-plementary Code Authority by any employer.

Each employer shall furnish the Supplementary Code Authorityfor dis4ribution with such number of copies of his price lists and/ordiscount .heets as Supplementary Code Authority may prescribe.

ARTICLE VIlI--UNFAIR TRAE PRACTICES

In addition to the Unfair Trade Practices covered by Article Vof the Basic Code, excepting A, and for all purposes of this Sup-plementary Code the following described acts shall constitute unfairpractices. Any member of the Industry who shall directly or indi-rectly through any officer, employee, agent or representative use oremploy any of such unfair practices shall be guilty of a violationof this Supple-imentary Code.RULE I. ()ah r8.-All orders shall be accepted or rejected by themamiifacturer when received, and all orders not for immediate ship-ment shall be signed by the purchaser. Orders for tanks of up to andincluding 100 gallon capacity for delivery at a date exceeding thirtydays from date of order but in no event exceeding ninety days from1 See paragraph 2 of order approving this Code.

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date of order shall be in the specified contract form prepared by theSuppleenwiitarv Code Autihority suibject to the approval of the Ad-ministrator. Orders for tanks of up to and including 100 galloncapacity shall cover specified articles to be delivered on or beforethirty days from receipt of order and shall be priced at prices ineffect at (ate of order. Orders for heater tanks sold to heater manu-facturers shall cover specified articles to be delivered oni or beforea definite date within ninety days from date of order and shall bepriced at prices in effect at (late of order. Orders for tanks in excessof 100 gallon capacity for specified jobs shall be accepted at pricesin effect at the date of receipt of order for delivery when the specifiedjob is ready.

RULE II. lt voices.-All sales shall be invoiced separately with thedate of shipment and such invoices, together with credit memorandaand all other documents relating to the sale, shall clearly and ac-curately state all of the essential elements of the sale, includingtypes and sizes of products, quantities, prices, credit terms, discounts,allowances, date of order, date of shipment, and other pertinent in-formation. Copies of invoices. together with credit memoranda andall other sales documents, shall, when requested, be filed with theSupplementary Code Authority, and, in the event of a complaint,sworn copies of invoices, credit memoranda and all other sales docu-ments shall be sent immediately to the Supplementary Code Au-thority uipon its request. Failure to comply with any of the provi-sions of this rule shall constitute unfair competition and a violationof this Code.

RULE III. Standlardidation of Prodvcts.-The Supplemenutary CodeAuthority shall make studies for the establishment of classifications,dimensional standards and quality for the products of this Indus-try, in cooperation with sioe Federal Governent Agency, pref-erably the Bureau of Standards of the United States, Department ofCommerce, with the view to their recommendation for adoption bythis Industry; such standards when approved by a majority vote ofthis Industry shall become the standards of this Industry withinninety (90) (lays and thereafter the Industry shall follow suchstandards.

RULE IV. Inspection.-It shall constitute unfair competition for amanufacturer to allow credit on a domestic sale for a defective arti-cle until the fact of such defect shall have been established by anauthorized representative of the manufacturer and the goods returnedto the manufacturer.

RULE V. Consigned Stocks.-It shall constitute unfair competitionto consign stocks of the products of this Industry to jobbers, plumb-ers or similar sellers, except under circumstances to be defined bythe Supplementary Code Authority, subject to review and approvalof the Administrator, where peculiar circumstances of the Industryrequire the practice.RULE VI. Definition of Customers.-The Supplementary CodeAuthority shall, with the approval of the Administrator, set up defi-nitions for the various classes of customers within this Industry.When so approved by the Administrator, quotations, prices, dis-counts, credit terms, allowances or other conditions of sale, shall bemade on the basis of such definitions and deviations therefrom shall

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constitute unfair methods of competition and a violation of thisSupplementary Code.

ItRULEVII. D;.c1(iminatton.-It shall constitute unfair competitionfor a manufacturer to discriminate in prices, terms, discounts, allow-ances, guarantees, or in any other way between purchasers of thesame class whether the material is sold for purchaser s stock, forspecific building operations, for federal, state, county or iniiiicipalgovernment, or for any other specific purposes; provided, however,that nothing in this code shall be construed to prevent any manu-facturer from selecting his own customers in bona fide transactions.

RULE VIII. ((ciret Ri )UtC. S-Withholding from, or inserting in theinvoice, Or other sales documents, facts which make said documentsfalse records, wholly or in part, of the transaction represented on theface thereof. and, or payment or allowance of secret rebates, refunds,credit, unearned discounts whether in the form of money or other-wise, or the extension to certain purchasers of services or privilegesnot extended to all purchasers of the same class under like terms andconditions, constitutes unfair competition.

RULE IX. Po8t-Datbin and Pre-Dating.-Post-dating or pre-dat-ing quotations, orders, invoices, statements or other sales documentsis u1..uallv done for the ptirpose of facilitating unfair competition,and is itself hereby declared to constitute unfair competition.

RULE X. iwulIung Breca(J of Contract.-Inducing or attemptingto induce the breach of a contract between a competitor and his cus-tomeir during the tern of such contract, constitutes unfair competi-tion. Provided, that nothing in this Rule shall be taken to preventa party who has quoted on the material involved from calling to theattention of the purchaser, even though the order has been placedand accepted, that the list of materials for which the order has beenplaced does not conform in size, quantity or quality to the list onwhich the quotations were solicited.

RULE XI. L'ump SUm BLdding.-Quoting a total price on anyschedule of dissimilar materials which does not show, or which islower than the sum of the regular unit prices of the articles corn-Prising the schedule, constitutes unfair competition. Where an ar-tiele consists of two or more parts which themselves are consideredunits by the Industry, the unit price of the combination article shallnot be less than the sum of the unit prices of the articles which coin-pri -e it and the invoice shall list each item separately with its price.

RULE XII. Trade Jiarking.-All products of the Industry, ex-cepting parts, shall be plainly branded or marked for identificationwith a name or trade-miark, in addition to a label, if any, to be onfile with the Secretary, in order to avoid deceiving purchasers orprospective pmrchasers. Misbranding or failure to brand constitutesunfair competition.

RULE XIII. M'xrcpriX( tat ion.-Advert isi m(g, selling or offering tosell any product of the Industry in such a manner as to deceive pur-chasers or prospective purchasers as to the quantity, quality, grade,size or substance of such product, constitutes unfair competition.RULE XI\. Substituton.-The furnishing of articles more or lessexpensive, of better or inferior (quality, or of larger or smaller sizethan specified without making the proper adjustments in the quotedprice and clearly indicating the nature of the substitution on theinvoice, constitutes unfair competition.

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RULE XV. ConnerWial Bribery.-No member of the Industryshall give, permit to be given, or directly offer to grive, anythingof value for the purpose of influencing or rewarding the action ofany employee, agent or representative of another in relation to thebusiness 4 the einployer of such employee, the principal of suchagent or the represented party, without the knowledge (of such ei-ployer, principal or party. Connercial bribery provisions shallnot be construed to prohibit free and general distribution of articlescoMMnonly used for advertisino- except so far as such articles areactually used for commercial bribery as hereinabove defined.

RUL: XVI. Protection.-The sale of materials under any formof guarantee against decline in the price of said product, constitutesunfair competition.

ARTICLE IX-MODIFICATIoN

SECTION 1. The President may from time to time cancel or modifyany order, approval, license, rule or regulations issued under Title Iof the National Industrial Recovery Act.

SECTION 2. This Supplementary Code, except as to proviSiOnS re-quired by the Act, may be modified on the basis of experience orchanges in circumstances; such modification to be based upon ap-plication by the Supplementary Code Authority or other representa-tive group within the Industry, to the Administrator and such noticeand hearings as he shall specify; and to become effective, as a partof this Code, on approval by the President.

ARTICLE X-PRICE INCREASES

Whereas the policy of the Act to increase real purchasing powerwill be made impossible of consummation if prices of goods and serv-ices increase as rapidly as wages, it is recognized that price increasesexcept such as may be required to ieet individual cost should bedelayed. But when made such increases should, so far as possible, belimited to actual additional increases in the seller's costs.

ARTICLE XI-MONOPOLIES

No provision in this Code shall be interpreted in such a way as topermit conduct or operations tending to promote monopolies or toeliminate or oppress small enterprises, or to discriminate againstthem.

ARTICLE XII-EFFECTIVE DATE AND DURATION

This Supplementary Code shall become effective at 12: 01 o'clockA.M. Eastern Standard Time on the tenth day after it is approvedby the President and shall continue in effect until June 16, 1935, orthe earliest date prior thereto on which the President shall, by proc-lamation, or the Congress shall, by joint resolution declare that theemergency recognized by Title I of the National Industrial RecoveryAct, has ended.Approved Code No. 84-Supplement No. 14.Registry No. 1129-1-14. 0

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