Approved Code No. 425 Registry No. 1218-06

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

MANGANESE INDUSTRY

AS APPROVED ON MAY 11, 1934

1k MEMDEli

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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Buffalo, N.Y. Chair ()I, Co'Ininerce Building.

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Approved Code No. 425

CODE OF FAIR COMPETITION

FOR THE

MANGANESE INDUSTRY

As Approved on May 11, 1934

ORDER

CODE oF i FAIR CoMPETITION FOR THE MANGANESE INDUSTRY

An application ha\v ing been duly made purslianit to and in full

Coll1plianice 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 Manganese Industry. and hearings having

been duly held thereon and the annexed report oi 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. Hu-( S. Johlson. Administrator for Industrial Recovery,

pursuaIt to authority vested in me by Executive Orders of the President, including ExecUtive Order No. 6043-A, dated Decenber 30

1933, and otherwise (o hereby incorporate by reference said annexed report and do find that said Code complies in all respects with

the pertinent provisions and will promote the policy and purposes

of said Title of said Act; and do hereby order that said Code of

Fair Competition be andl it is hereby approved.

Huoi S. JOHNSON,

Adminiistrttor for ItdustIrial Recovery.

Approval reconlnended:

K. M. SimrswN,

Diciion Admi"iHtator.

WASHINGToN, D.C.,

Uay 11, - 34(.

587* -4 -0- 3 (113)
REPORT TO THE PRESIDENT

T he PREsIDENT.

Tb Je /ute HJou'.

Si: The rigina Co(e )f Fair Competition for the langanese

industry was submitted on August 24th, 1933, by the American

Manganee Produlers Association, an unincorporated membership

society org anized in 19-27, representing 90 '+ of the known members

of the hIdlu'-try in volinme of production. Several revisions of the

Code were made pri r to the public hearing held on January 26,

1 ''4. The C ' ide wo-s revise 1 luring the reces of this hearing and

sbilimu tted ill its iinal frm f 0r a pproval. Every person who requested

011 appearance was propr1y heard in accordance with statutory

and reillatory requirement. The efjang1nemindutyK inldes the deveb jpment, iig millinr. on0i entrat IQ andi benmeficiatiing of domestic ores. Aboit 95%

of the mlanga nese production is consumed in fei rous me, alliurgy

1 Iih di- remna ind r in the dry battery and chemical industries.

Before the World War the domestic production of manganese

Ore w VA Very immil compared with the domestic consumption. The

average ann ual output from 1H) to 1914, inclusive, was about 5,000

long tons: import- during the same period avera-ed about 223,000

long t ns. At the time the World War the requirement for

mangauese in the United States expanded. and some of the transport of imported ore wa, >erinsiy menaced. ID)mnestic production

grew [inider the impetus of eXcfeptionally hiAh'iprices and urgent overn mental requests for inreaed output. 1I 1918 it reached a Peak

of nearly 3 06.000 t . which was about 3Y of the total manganese-

()Ie reN ireuments in the United States during that yea r. This

state of a lairs termitId abruply with the signiinc of the aiimistice.

Prices ileClined ii ioiatAv. atld m11anv war-tiiie contracts were

caiueelh i: ill (onseqllence m 1Ch domestic prnidiwioii became unpro litable, an :a nller f pr tIllwers win Iad devel mod properties

at a coniderable eo4. ex\ectnlug the war to la"i n1i longier. faced

lheavv lPsss.

1-1)ler ptwrcwnditiolloesi production dwinldledl rapidlyN

al bv ol uilmited to onlll 13,00 toils. M(qlnwlile. a demand

for tarii pro 0t'rt lol had levelpetd. Proponents of the tariff claimed

that a doie-.tic upplv o -ii h a1 imuiportauit raw mai:terial as mani (O cre wa --taltma to the couilitry In war anid that the eXpericlnii OlingIi thw W1ob1l War indicated that a >ubstautial manianisior'e iulisti 111th b)1 uvel(pid mier Preri' tlrif' protection.

Thw timilf ZlCt of 192., w li'h becamii elective duing the latter

parl't ()f that y vear, c tAb11 ,llih d 1 (ity l of' one oh ;mt perof

t;l(d n niI Ipor i ores coltainiinimme ill lxcl4s ofi 2d''Q 

mummml.a 110 . Tho iIec't o hii t was fihi;i; n :I i't!c'i iiI tlie

don)Ic-4Pi price of m iigt'i ore. Domestic production of ma1-

(114)
115

ganese ore rose to a postwar peak of 98,0100 tons in 1925. which was

equivalent to about 141 of the domestic requiremiienits iII tllat ,yca r.

Nearly half of the 192.) out)It was derived fr omii the ilhodh()(r()site

ores of the Butte district, and about a fifth of the total repr' le'ent(d

the production of battery ores fromi the Phd lipsburg (Mont.) district. Impor fULLs inicreaset froi 42,.(K)() tons it 1922 to 61,t).(!()0 tOnls

in 1925.

The increase in domlieStic proi)ductioi from 1922 to 192.5 was accomnipanied by a steady increase in price, but by 1925 the prd ctio)n

of foreign ores had increas(ed to such an extent t hat there wa s(-vere

competition for the world's markets and the price of manuaInese

began a steady decline.

While the tariff was being considered in 1929, Congress was requested by the manganese-ore producers to increase the tariff 011

man ganiese ore and to extend the (Uty to ores contai -ing less than

30% of manganese. It was claimed that the domestic industry had

prog(re!ssed tnder the protection granted it in 1922 and that further

protection was needed to put the processes being developed to treat

low-grade ores on a commercial basis. Opponents ()f the tariff

contended that the record of production under seven years of protection proved the contention made by them in 19 -that the known

reserves were insufihcieit to pro video anl ale(uiate sipplv of manganese, even with tariff protection. They also contended that the

impoosition of high duties to sustain production from low-grade ore

bodies was uneconomical and placed an unnecessary burden on the

steel industry. The price of manganese continued to decline steadily during 1929.

The Manganese Industry enjoys a unique position in that its

product is an essential constituent in the manufacture of steel. A

substitute may be developed ultimately, but under existing prices

and metallurgical technique there is none. The ratio of manganese

consumption to steel production is abhuut 14 poindis to one ton.

For use in ferrous metallurgy, nimananese is converted into various

allows; ferromanganese, containing Th% to S2% manganese; spiegeleisen, contailling 1S( to 221 manganese silicomanganese, containing

55( to 7O% manganese; and sihicospiegel, containing 18' to 22%

manganese. About 90U, of the nanganise consumed1 is in the form

of ferronmanganese.

The Industry is confronted with the problem of reviving the 1production of low grade manganese ores and the attempt to develop high

grade ores. It is generally conceded that the reserves are inadequate

to develop a representative manganese industry in this country.

Efforts have been made to beneficiate low grade ores. The costs of

production, plus subsequent treatment. are too high to meet coipetition of foreign ores even with an increase in the present tariffs.

Investigations indicate that the domestic manganese industry is

incapable of producing a substantial amount of ferro-manganese

grade ores at world prices.

The tariff acts of 1922 and 1929 have done but little to stimulate a

domestic manganese industry.

Because of the stagnant condition of the industry. an industry in

the strict interpretation of the act does not exist. Because of the
116

fact that manganese does occupy a pivotal position as an emergency

war material, and also because of the fact that the industry did,

under stress of war demands and high prices, produce up to 38% of

our requirements, the sponsor's application for a Code of Fair Competition for the Manganese Industry has been g-ranted.

Article I. Purposes. States the purpose of the Code.

Article 11. Definitions. Accurately lefines specific terms applicable to the Manganese Industry as used in this Code.

Article IIl. Hours. The maximum hours are limited to forty

hours per week for employee; engazged in the processing of products

and labor incident thereto. Watchmen shall be permitted to work

either 4 hours in a two veek period or .( hours in any one week

according to the nature of their responsibilities, with one day rest in

every seVen. Office, salaried and other employees not covered above

who receive less than $35.00 per week shall not be permitted to work

in excess of a n average of forty hours per week during any one

month, nor more than 48 ioirs in any one week. Employees engaged

in an executive. managerial or slipervisory capacity who receive not

less than $ p.0) Perweek are not subject to any iourly limitations.

The maximum hours shall not apply in Ca>'> of emergencies or repair

where safety of life or health or protection of property necessitates

longer hours.

Article IV. Wagies. The minimum wages for employees engaged

in the processing of prodchits or any labor incident thereto is at the

rate of 4Q4 pI hour above ground and 471# per hour iinderg'rouind

in the Northwestern Section, and 40< per hour above ground and 45('

per hour ulnder'giollid inl the Northern c'tioB, and 30" per hour

above ground and 85< per hour underground in the Southern Section

except as otherwise provided. The minimum rates shall be construed

as the hiring rates applvingy to colmion or totally unskilled labor;

and all otlier Iasses of labor, including, pie 'e workers, shall be coinpenisated at rates above these ininummus. The established minimum

rate of pay fT 1r th work performed in any pay period shall apply

irrespective of whether n employee is actually cOmpnsated oi a

time rate. piece rate, or other basis. Provision is alo made for the

eiplovin of haIindicapped persi)ns0. No peri employed in (cleIrical

or filec work shall be paid less than at the rate of $15. 0 per week,

except thlat 4ficec boyvus and girls and messencers may be paid at a rate

not less tiaI SOe of the mininuim paid office emplioees.

Art i l'h V. General Labor PMovisions. Provides that no employer

shall clilOv any, person mider 1N 'eUrs 14 age and thait Do poison

uni(der 18 years shall be employed at operatl(11s or occulpations which

are hazard us in nature or danglerwOui to health. This Article also

sets forth the mandatory provision respecting the rihts of em plovees

to omranize and bargain collectively. Tbis Article also provides for

matters having' to do with reclassification of employees, standards for

safety and health, the observamce of Sttite laws awd the posting of

('mplete c pies of th is Clode s thbat the y are accessible to employees.

Article VI. Adihinistra in. Establishes a Code Authority consisting of 111minemnbers, five of whom shall be the executive commiittee of the Anmerican i1man iiane,>e PIr d ucers Association. Fomr

other members of the Industry (not members of the executive comi-
117

inmittee) truly representative of the various inltere4tS of the int Htu4ry to

be V~elted by I fair method of selection, approved by the Ar biinistrator. In addition to the organization of the (Code Autlioritv, the

powers ad (1 tis therf re an, ouline iII this Article.

Article VI. Marketing an(d Tra(le Practice Rilie;. Sets f ;rthI

fair trade praCtices for the industry, as also etIing forth open pie

schedules which are (fective immediately after filji(. Article V I 1. Export, Trade. No provision of this Cdc relati n

to triiis (4 sellingo )r prices, silippJing Or miarketing, shall "H)I

to export trade or sales or shi H)pmiits for export traile.

Article I X. Iod i Iicat ion. This Code aind all its prOvIsions

thereOf are expressly made subject to the right of the lPresilent, in

accordance with Sub-section (b) ot Section 10 of the Act, from

time to time to c(anicel or molify anIv order, approval, 1 icelise, 1 1

Or reg"Ulhtion isSue(d indl saii Act. Provisoi is made that ( ni

amendilm tient mt av be proposed bY any interested party. ProvisiOn is

also made so that the Code Authority may iiike reconienditiOns

for modifications of this Code to the Ah(lmilistrator which shall hecome effective as a part of this Cle upon approval bI y the Adlmiinistrator after such notice and hearing as he may prescribec.

Article X. No provision of this Code shall be so applied as to

permit mn'nopolies or 1m1(fOnpolistic practices (,r to eliiminate, oppress

or discriminate against small enterprises.

Article Xl. Effective Date. This Code becomucs effective beginning ten days after its approval by the Admiuistrator.

The Deputy Administrator in his final report to ie on said Code

having found as herein set forth and oin the basis of all the proceedings in this matter;

I find that:

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry 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 elimi nating unfair competitive practices, lv promoting the fullest possihIc

utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be. temporarily

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing

and relieving unemploymeilnt, by improving standards of labor, and

by otherwise rehabilitating industry.

(b) Said Industry normally employs not more than 50,000 employees, and is not classified by me as a major industry.

(c) The Code as approved complies in all respects with the pertiiient provisions of said Title of said Act, including without limitation Sub-section (a) of Section 3, Sub-section (a) of Section 7, and

Sub-section (b) of Section 10 thereof, and that the applicant association is an industrial association truly representative of the aforesaid

industry, and that said association imposes no inequitable restrictions

on admission to membership therein.
118

(d) The Code is not designed to ancd will not permit monopolies

(1 mlIOfO)polistic practices.

(c) T'iee C is not designed to and will pot eliminate or oppress

mfl II enterprises an wTll not operate to discriminate against them.

(f) Thos- engag('ed il (,ther steps of tile ecVo i( process have not

beln U priv'd of the rigit to )e heard prior to approval of said

F :it Fe as( us, therefor , thiis Code h1.as b een a approved.

iSJp)ct filly ',

HUO S. JOHNSON,

MI ' Il, 19,4.
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123

N 5. Sta t( Laws.-No prOVisioll ill this C"tm)Ile shall si rsed

any State or Federal law wiich imposs onl employers more stringent

requ(1 IIIllelts as to age ()f eilp)I)(ves, walevs, !OU - work, )I aS to

safety, health, sniitary or grl working (0nditil s, 0r insuran(',

M, fire protection, thanill r ililjp)ed by Illis: Cde.

S(r1N (. PostI;N I/f.-All1 empl( )ycrs sh post a( koep I ted1

complete (.(pies ()f this, '1de an allNy m mb n t teret') *i1 11nSpicil0o)IIu places zwc(1S'sibl' to (mllyLVs.

SEi( TIo )N 7. Col/p(Ih/ To/1 i (IHI (,)I'(.- l()l) -ther t ha n

mami fltelnalne ()1 .sipV 11)V 11y , )' thI( e11a(ry to pr)Otect property, shIll ]!t be required :Is a Od-itiOn of emplviei'llt to live ill

11(11me1s rented from tle emlyer. No) emplye hall be required as

a condition of em11 yment to t ralde at a store mwiled )I, spccPfied by

al employer.

SECTION S. P/ay/nn('h of Iafj An employer sliall make paym ' lnt

of all wages inl lawful currency, (;r by negotiate ) check therefore, payable Oi demand. Tiese wOes 5111 1 exempt from amY payments

for pensions, iIIsiiranuce 0 sick benefits other tha1 tho Ise vollntaily

paid by the wage earners or reqo i red by th lo State laws. Pay periods

for wages slhll be at least seNi-monthly and Tor :alaries at the end

of every nlIlth11. EmIlIphoyers s shall ariee IlolIt to withhold wn. 'Yes.

SECTIo IN 9. flbo/u /Nfl fn' ( /iiaj .- iNo elimplovee shall be oiismissed by reason of making a comipiilt r giving evidence with

respect to a violate n ()f a C d0.

AwRTICLE VI-OlIANIZATION, PoWERS AND D )ivrlI:s (I, TilE

CODE AVTIIoITY

SEC7"T1ON 1. Oi,,pliLwion elmlh 'bUt 0/ .- A (Ide Autiority

to administer this Cod is hereby eslablished and shall c onsist 4

nine voting members, five of win shall e miemtberl s the Executive Committee of t he Amiiierican MI aingainese Pr(1hicers Asociatiion

and four other members of the In(lustry (not members of the Exocutive Coinmittee) truly represeItative of the various iInterests of the

Industry elected Ibv a fair method( of selection approved by tie

Administrator. Thlis CO le Authority shall m1ke investigations as

to the flnctionii and o)bscrvance o any PFOVisions of tis C(d

at its; own instance or 111)1m comiplaint of any pelrs()n affected and

shall report the same to the Adlministrator.

SECTION 2. Inl addition to the above meibelrhip of the Code Authority, there may be (mw and iot more thon three members without

vote, and without compensation by the Intdustry, appointed by the

Administrator to serve for six month and twelve month terms from

the date of appointment as he may specify.

SECTIoN 3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall, (1) impose no inequitable restrictions on membership and,

(2) submit to the Administrator true copies of its Articles of Association, By-Laws, Rules and Regulations, and any amendmlents when

made thereto, together with such other information as to membership, organization and activities as the Admninistrator may deem

necessary to effectuate the purposes of the Act.
124

SiTIox 4. In order that the Code Authority shall at all times

be truly rep1(-Celtative of the Inldustrv and in other respects comply

with te prOvisi oni of the Act. the Administrator may prescribe such

hearuing as lie may deem proper, and thereafter, if he shall find

that tile C(04b Autihorit v is not truly representative or does not in

Other respects comply wvith the provisions of the Act, may require

n11 appropriate nl011ication in the method of selection of the Code

AIJthority.

SeCenION 5. MemiiibIrs of the Industry shall be entitled to participate in and slhayre the benefits of the activities of the Code Authority

and to participate in the selection of the members thereof by assenting to and complyiing with the requirements of this Code and sustaininw their reasonablie share of the expenses of its admllinistration.

Such reasonable share of the expenses of administration shall be

deteriniiie(d by the Code Authority, subject to review by the Adiministrator, on the basis if volume of business and or such other factors

as may be deemed equitable.

SECTION 6. -Nothing contained in this Code shall constitute the

members of the Code Authority partners for any purpose. -Nor

shall any member of the Code Authority be liable in any manner to

anyone for any act of any other member, officer, agent, or employee

of the Code Authority. Nor shall any member of the Code Authority,

exercising reasonable diligence in the conduct of his duties hereunder,

be liable to anyone for any action or omission to act under this

Code, except for his own willful misfeasance or nonfeasance.

SECTION 7. Powers and Duties.-Subject to such rules and regulations as may be issued by the Administrator, the Code Authority

shall have the following 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. If the Administrator shall determine that any action of

the Code Authority or any agency thereof may be unfair or unjust

or contrary to the public interest, the Administrator may require

that such action be suspended to afford an opportunity for investigation of the merits of such action and further consideration by such

Code Authority or agency pending final action which shall not be

effective unless the Administrator approves or unless lie shall fail to

disapprove after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form.

(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, subject to rules and regulations pJrescribed by the Administrator. To receive complaints of violations of this Code or disputes

arising thereunder. make investigations thereof, provide hearings

tlereon). adjust (uch1 compla ints and make such decisions as are necessary thereon and to interpret the provisions of the Code and to bring

to thel* attention of the Administrator for prosecution, recommendation, amol such (t1hCr necessary action relative to unadjusted violations

or dismptes.

(b) To ad(pt I!yV-laws, Rules and Regulations for its procedure

and for the a(iniutration and enforcement of the Code.

(c) T obtain fm meilbrs of, the In(lustry, through a colnfidential agelnV. >1wh statistical i11formatiol and reports as are required
125

for the administration of the Code and to provide for subomilissiOfn

by members of such statistical intfirmiation arli Ir Vports as the A(1111111-

istrator may deem necessary for tle plrjis recited in Sect ion

(a) of the Act, which inforImiation anI i eprts shall le suibimitted

by members to such aininistrative and or goveriliineItaI agencies

as the Admiiis-;trator may provided that noth in in thlis

Code shall relieve any ileiibir Of the lnd(h1l t ry of any existing obligations to furnish reports to any gWvermnental agency. No dividual reports shall be disclosed to any other membel r of the Inustiliry

of any other party except to such go verinmenLtAl agencies as may b)e1

directed by the Administrator.

(d) To use such trade associations and other agencies as it diQms

proper for the carrying out Of any of its activities provided for

herein provided that nothing herein shall relieve the C(ode Authority

of its duties Or responsibiliti. under this (")de and that such trade

associations and agencies shall at all t ime's oc sbIhject to and comply

with the provisions hereof.

(e) To make recommendations to the Adiinistrator for the coordination of the administration of this Code with siuch other Codes,

if any, as may be related to the Industry.

(f) To cooperate with the Administrator in regulating the use

of any N.R.A. insi gina so y by those mle!Ilbers of tile Inhistry

who have asseinted to, ani are cl)yivig with, this C de.

(g) To recommend to the Admin itrat' ar farther fair trade practice provisions to govern members of th. Iniduastrv in their relations

with each other or With other inustrie, :nud concerning control

of production throimgh voluntary a1greumen, and to reimoinienld to

the Adiinistrator measures for idutrial planning, including

stabilization of employment and the conservvtion (f natural

ninerai resources.

(h) To make studies with a vivw to the estabflising of chassitications and standards of quality fiar produAts (Of the Iwu lmtry ill

cooperation with same Fedleral ape ncv, prferably the Bur'eaui of

Standards of the United States eartmnt of Commnerce.

ARTICLE \ITRII RETING A'N) TRADE PRACTICE R tLs

SECTION 1. TiUdf' PY1'ti'ce Ilies.--The flowing trade pract ic'eS

are declared to constitute unfair methol-, of competition between

menibers of the Industry, and no incumImbr of the Industry shali use

any of them either directly or indirectlv th irigh any ofl"eer, agecnt

or employee ; the violation of any one orI mre of these 01r any further

trade practices which hereafter may 1e e-tablished upon recomniendation by the Code Authority and appr vail y1 the Administrator after

such notice and hearing as he may prescrbe, shaml b a violation of

this Code.

SECTION 2 (a) Pric, Sc/Hdue, .- Ea ch mueIimber of the Industry

within ten days after the effective date of this Code shall file with the

Code Authority the price or prices and terns ant conditions of sale

at which he is offering his products for ale ; this original filing to

become effective on the date of such filing. The Code Authority

forthwith on such original filiing shall notify all members of the

Industry of the contents thereof and shall make the same available to
126

the public. Any member of the Industry desiring to change the

price or prices of his products and terns and conditions of sale shall

notify the Code Authority of such intention by filing his revised

schedule which shall becoine effective inunediately thereafter and

shall be distributted to the Menbers of the 1ndIWstrv and be made

available to the general public.

(b) Such price schedules shall include terms of patient. length

of bookings, or contracts and f.o.b. point and such other provisions as

may bi) necessary to fully inform the trade of all conditions of sale.

(c) The failing to file such price schedules or any change therein.

(d) The selling below such open or publicly announced price

schedulvs or the deviating from such terms and conditions of sale as

are set forth in Section 2. Subsection (a) of this Article.

SECTION 3. The secret payment or allowance of rebates, refunds,

colniuissions. credits, or unearned discounts, whether in the form of

money or otherwise, or the secret extension to certain purchasers of

special services or privileges not extended to all purchasers on like

terms and conditions.

SECTION 4. The prepayment of freight charges with the intent or

with the effect of granting discriminatory credit allowance.

SECTION Z. The allowance in any form of adjustment., discount,

credits . or refunds, for the purpose or with the effect of altering

retroactively the price quoted, in such manner as to create price discrimination.

SECTION (. The predating or postdating of any invoice or sales

contract except to conform to a bona-fide agreement entered into

on the predate.

SECTioN 7. The false marking of any product of the Industry or

the intentional misrepresentation of analysis of content or of any

size or weight or the making of, causing or permitting to be made

or publishing of any false, misleading, or deceptive statement by

way of advertisement, invoice, or othlerwise concerning the size,

quality, quantity. character, nature, preparation, or origin of any

Industry product.

SECTION 8. The defamation of competitors by falsely imputing to

them dishonorable conduct, inability to perform contracts, questionable credit. standin,. or other false representation or false

disparagement of the grade or quality of their goods.

SECT7N 9. The imitationi or copying of written or oral form of

trade marks, trade names, or slogans owned and used by a competi1tor.

Svc'iN 10. Inducing or attempting to induce the breach of an

eCX14ing oral or written contract between a competitor and his

customer or source of supply, or interfering with or obstructing

the perfvmanck' of such contractual cities or services.

SIecioN 11. No member of the Industry shall ship goods on consignment except under circumstances to be defined by the Code

Authority with the approval of the Administrator (where peculiar

Cimrcumistances of the Inh(lstry require the practice.

SIK(-rTih N 12. No member of the Industry shall require that the

pllrchase or lease of ally goods be a prereq'uisite to the purchase or

lease of any other goods.
127

SECTION 1.3. No member of the Industry shall give, permit to be

given, or directly offer to give anything of value for tlelt purpose of

iluiencing orrewarding the action of any employee. aaent or representative of another in relation to the business of the employer of

such employee. the principal ()f -u(',h agent or the repres1ntl p1rty,

without the k elof such employer. principal or party. TI is

connercial briberv provision hall not be contrued1 to prohibit free

and general distributionn Of articlc:- conuiionlv used for alverti;. )in

except 5o far as. such uartiules are actually used for u1mmnr ial

bribery as hereinabove defined1.

SECTION 14. Giving of gratuities or special (1 bui1iPn to b1yers

or reward or payniit- t; 0)"e o uilovees of bmyers or thw lavish

entertainment thereof.

SECTION 1.5. No member of he Indiistry sha1 publish (r circulate

unjustified Or unwarrantied th)t- of le-al proceedings which tend

to or have tihe effect Of asig comiill)Ator Ir ilitiMidatin their

custoimers. Failure to precute in dhe cu rse Thall bo evidence that

any such tIlreat is unwarranted or n lutified.

SECTION 16. Aidintr o1 abe tintr !nv pers-oin, firm. asociatoii. or

corporat ion in any unfair iroticc lierei -et out.

SECIoN 17. ProeuIring. otherwvi-e than w'ith the con feunt of any

member of the Indu tvy. any information ConceIlng tile busins

of Such niember which is prouirly rega!rded by it as a trade -evrot as

held confidentlil with in its organization, other flhan informni 11n

relatiii to a violation of any provision Of this Code.

SETIoN. 18. Con:'iou--lv shipping a lower arade of material than

is permitted in the contract or or lbr.

ARZTI( LE \JI I-Ex 1 ou Tn ri;

SECTION 1. No prOVi-ion of tliis Code reatingQ to prices Or term of

selling. -hipping, or marketing -ill apply to export t Iade or sales

or siliPimoents for export trade.

A\IRTICLE IX-MODIFICATION

SEoTION 1. This Cde and ,l the pjrovi>Bi;ns tereof are exprel--y

nIade subjectt to the riOht f the President, in ac(ordlance with the

proviioln-; of Sub-Section (b) of Section I0 of the Act, from t6ime

to time to cancel or modify any order. approval. li4ense, rule or

regulation i-s-.ued under -aid Act.

SECTION 2. Such of tihe provisions of this Code as are not required to be inlud4d therein by the Act may. with the approval of

the Adninisrator, be modified Or eliminated in Such mulanner as may

be indicated by the needs of the public, by changes in circumntances,

Or by experience all the provisions of this Code. illes So Modified

or eliminated, shall remain in effect during the life of the Act.

SECTION 3. An amendment may be propol-:ed by any intere-ted

party, either to the Code Authority or directlv by or to the Administrator. All proposed amendments shall be referred to the Code

Authority, who shall give members of the Industry an opportunity

to be heard thereon, and thereafter the Code Authority may make
128

such recommendations thereoi is deemed proper, provided, however, that when approved by the Administrator as necessary to

effectuate the policies of the Act, after such notice and hearing as

lie imay pr(scrie, an1yA, proposed amlIildmnen)t shall thereupon become

effective as a part of this Code.

SECTIoN 4. Th1e C(ode Authority intiy mike recommendatiols for

modifications of this Code to the Adiiminstrator which shall become

effective as a parc of this Code upon approval by the Administrator

after such notice aln( hearing as he iiw, prescribe.

ARTICLE X-\ION ()P(,iLiES

No proviin of this Code shall be So appHled as to promote nonopolies Or m11onopolistic 1 practices, or to eliminate, oppress, or discrimiMate agaiuist siiiall eniterprises.

AirICLE XI-EFFECTIVE DATE

This Code shall become effective beginning ten days after its

approval by the Administrator.

Approved Code No. 425.

Registry No. 1218-06.

0
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UNIVERSITY OF FLORIDA

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