New-York tribune., 1921-10-30
Entire Industry Hit


It has become almost business
axiom that unethical conduct in busi-
ness harms not only the one at whom
the unethical actaion was aimed, but
the perpetrator and his competitors as
we'll. In other words, the entire in
dustry feels the reaction. For this rea-
son, where concentrated opinion can
be gathered in trade associations. the
elimination of unfair and unethical
conduct has loomed large.
The new code of fair practices gov
erns the transactions of companies
with an invested capital exceeding
s100,000,000, with an industry spending
$2O0,000,000 this year in merchandise
and labor bills. The companies in the
association include all the allied trades
upon which the ice cream manufactur-
ing industry is dependent for ma
chinery, equipment, supplies and spe-
cial services. Although several of the
rules laid down in the code apply par
ticularly to the ice. cream supply busi-
ness, the majority are broad enough to
apply to almost any line of industrial
endeavor. The code already has
aroused much interest among other
trade associations and is serving as a
model for other codes now in process
of formation. Violation of the code,
WHcH proved, pTOFlUtS SIOuHUS IOI tHS
expulsion of the offending member
from the association attended by full
publicity.
The code follows:
UNFAIR PRACTICES OF SELLER AS
AGAINST BUYER
/. Misbranding of articles as regards
the materials or ingredients of which
they are composed, their quality, their
method or place of manufacture or
origin: "inferential" misbranding- e.
using trade names or descriptive terms
which simulate trade names or de-
scriptive terms of unadulterated or
genuine goods.
2. Bribery of buyers or other en-
ployees of customers, with the pay
ment of specified percentages of the
purchase price of all goods bought,
with money, presents, excessive treats,
etc, to obtain new business or to in
duce the continuance of patronage.
3. Commercial bribery of customers
by money long-term credits not in
keeping with trade custom, excessive
entertaining or any other means.
False Advertiser
4. False or misleading advertising
concerning prices, advertisers status
as manufacturer, methods employed
IN the advertisers business, false
claims to government or other indorse-
ments, ETC., or any advertising, printed.
written or oral, that comes within the
definition of undesirable advertising"
laid down by the National Association
of Ice Cream Manufacturers.
5. Trade boycotts or combinations of
traders to prevent buyers from obtain
ing goods through customary channels.
g. Sale of rebuilt articles as new
products.
7. Leader" selling-i e., selling one
piece of goods at less than cost and re-
coupling on others sold at the same time
8. Making up and disseminating false
cost sheets.
8. Lottery" premiums. e. giving
OF offering premiums of unequal value,
the receipt of any particular premium
to be determined by lot or chance
10. Discrimination in prices between
different purchasers or different local-
ties, based upon other than legitimate
cost, sales and delivery considerations.
il. Selling food, or a product to be
put into food, which, because of it's ma
ture or method of manufacture, or for
any other reason, violates a local, state
or Federal ordinance OR law.
IL. Consigning unordered goods to a