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BOSTON PUBLIC LIBRARY 



3 9999 06317 387 4 






A 



OFFICE OF NATIONAL RECOVERY ADMINISTRATION 

— 

DIVISION OF REVIEW 



TRADE-PRACTICE CONFERENCE RULES OF THE FEDERAL 
TRADE COMMISSION (1919-1936): A CLASSIFICATION 
FOR COMPARISON WITH THE TRADE-PRACTICE PROVISIONS 
OF NRA CODES 



By 
S. P. Kaidanovsky 



WORK MATERIALS NO. 54 



/ 



TRADE PRACTICE STUDIES SECTION 
March, 1936 



OFFICE OF NATIONAL RECOVERY ADMINISTRATION 
DIVISION OF REVIEW 



TRADE-PRACTICE CONFERENCE RULES 0? THE 
FEDERAL TRADE COMMISSION ( 1319-1936): 
A CLASSIFICATION FOR COMPARISON 7ITH 
TRADE- PRACTICE PROVISIONS OF ERA CODES 

By 

S. P. Kaiclanovsky 



TRADE PRACTICE STUDIES SECTION 
March, 1936 



2757 



forey/ord 



this study of the Federal Trade Commission Trade practice Conference 
rules was made "by Mr. S. P. Kaidanovsky, of the Trade practice Studies 
Section, Mr. Corwin D. Edwards in charge. 

One of the reports, (York Materials Ho. 35) of the Division of He- 
view contains an analysis and classif ication of the trade practice pro- 
visions of ERA codes. The materials in that report naturally suggest 
a auestion with respect to how far agencies of the Government previously 
charged with oversight of trade practices have accepted similar regula- 
tions. In connection with several of the special reports on trade prac- 
tices it had become necessary to examine rules of the Tre.de Practice 
Conferences held from time to time by the Federal Trade Commission. The 
present document is a systematic presentation of the results of this 
examination in a form which permits ready compear is on with the analysis 
of trade practice provisions previously mentioned. It is hoped that the 
two documents together will provide a conspectus of the similarities 
and differences between ERA. and the Federal T^ade Commission in the 
focus and e::tent of their respective efforts to cooperate with organized 
industries for the prevention of trade abuses. 

The present report contains charts indicating the frequency with 
which various kinds of trade practice rules were accepted by the Federal 
Trade Commission and notes indicating the characteristic form of each 
rule and t he v arious modifications which developed in particular trade 
practice conferences. In the text, related g roups of Trade Fractice 
Conference rules are treated t ogether. In appendices the Trade Practice 
Conferences and the rules are listed in detail. 

At the back of this report will be found a. brief statement of the 
studies undertaken by the Division of Review. 



L. C. Marshall 
March 9, 1936 Director, Division of Review 



2757 -*- 



TRADE-PRACTICE COITFEREIXE RULES OF 
FEDERAL TRADE COLLIISSIOII 



TABLE O 1 " COLTEHTS 



Page 

I. Introduction 1 

II. Trade-Practice Conferences 3 

A. History and Purpose of Trade-practice Conference 

Procedure 3 

1 . Trade-Practice Submittals 3 

2. Trade-Practice Conferences . . 5 

3 . Stipula.tions 7 

4. Trade-pr-cictice Conferences Since the Termination 

of tre ERA Codes 7 

III. Summary Statement of Trade-Pra.ctiee Conference Rul es 9 

A. Tabulation of Trade-Practice Conferences "by Types of 
Trade-Practice Conference Rules 9 

CHARTS . lumber of Trade- F -rctice Conferences, by Industry 
Groups, Conu&.ining Specified Trade-Practice 
Conference Rules 10A-10D 

B. Notes on Items Appearing in the Tabulation 11 

1. Cost Accounting Systems 11 

2. Minimum Price Provisions 11 

3. Terms of Payment 11 

4. Freight and Transportation Tens 12 

5 . Shipment s 13 

6 . Open Price Systems 13 

7 . Dumping 14 

8. Price Guarantees and Other Offers of Price protection ... 14 

9 . Rebates , Refunds 14 

10 . Allowances 14 

11. Rendering Financial Assistance to Buyers or 

Other Persons 15 

12. Conditional Sales 15 

13. Shipments Tithout Order 15 

14. Sales on Consignment or Memorandum 15 

15. Product and Maintenance Guarantees 15 



9757 -ii- 



TABLE OF COIIT'TTS 
(Continued) 

Page 

16 . Returns and Adjustments 16 

17. Rendering Additional or Special Services 16 

18. Supplying Add: clonal or Special 0-oods 17 

19. Forms of Offers, Orders, Agreements 17 

20. Contractual Obligations or Agreements 17 

21 . Standards 18 

22. Labeling Retirements 20 

23. piracy end Imitations 20 

24. Coercion, Ere spas sing and Interference 21 

25. Misrepresentation and Deception 24 

26. Shipping or Performing at Variance From Contract, 

Representation or Governmental Laws 26 

27. Discrimination in Prices, Terms, Services and/ or 

PriviJ eges 27 

2b. Customer Classification 28 

29. Trade and Industry Classification 29 

30. Quantity Discounts . , 30 

31. Dealings with Agents, Brokers or Other Controlled 

Sales Representatives 30 

32. Renting, Loaning or Leasing of Equipment or 

Property 31 

33 . Bidding and A la re i :i ; 31 

34. Mechanisms Accepted by the Federal Trade Commission .. 33 

APPS TT DICLS 

Appendix A. Order Creating a Division of Trade Practice 

Conferences 36 

Appendix B. Executive Order - Delegation of Authority to the 

Federal Trade Commission to Approve Certain Trade 

Practice Provisions 39 

Appendix C. List of Trade-Practice Conferences 41 

Appendix D. List of Trade-Practice Conference Rules Adopted or 

Accepted by the Federal Trade Commission 46 

Appendix E. List of Industry Croups 60 



9757 



-in- 



-1- . 

TRADE-PRACTICE CONFERENCE RULES OE THE FEDERAL 
TRADE COMMISSION (1919-1936) 

A Classification for Comparison with the Trade- 
Practice Provisions of the NRA Codes 



I. INTRODUCTION 

An analysis and classification of Trade-Practice Conference rules 
of 143 Trade-Practice Conferences and Trade-Practice Submittals held 
under the auspices of the Federal Trade Commission was made in this 
study. The history and purpose of the Trade-Practice Conferences is 
presented in Part II. 

The tabulation and description of the Trade-Practice Conference 
rules are set forth in Part III and present a summary statement of the 
principal Trade-Practice Conference rules adopted or accented by the 
Federal Trade Commission for the period of 1919-1934. The classification 
used in the oresent analysis is similar to the classification adopted 
in the study of trade -practice provisions in Codes of Pair Competition - 
"which was "based upon similarities in the Objectives or functions 
which the trade-practice provisions were designed to achieve . . 
and on the similarity of the kind of practices ..." (*) 

The Trade-Practice Conference rules have been summarized as follows: 
first, under each major group the principal types of Trade-Practice Con- 
ference rules have been individually specified and second, instead of 
listing the individual Trade-Practice Conference which include the Trade- 
Practice Conference rules, the tabulation presents the total number of 
Trade-Practice Conferences 'which contain these specified rules. For the 
purpose of comparison with the Trade-Practice Provisions of the NRA 
codes the total number of Trade-Practice Conferences was broken down in- 
to 21 industry groups, the same as for the NRA codes. For some of the 
industry groups, such as Rubber, no Trade-Practice Conference rules have 
ever been adopted by the Federal Trade Commission. Some, such as Trans- 
portation and Communication, Finance, are not under the jurisdiction of 
the Federal Trade Commission. The ma.jor trade-practice provision group- 
ings presented in the study of the trade-practice provisions in NRA codes 
were also followed in this analysis. Some of them have been eliminated 
due to the absence of these groups of provisions in the Trade-Practice 
Conferences. 

The major trade-practice groupings in this analysis are as follows: 

Cost Accounting Systems 

Minimum Price Provisions 

Terms of Payment 

Freight and Transportation Terms 

Shipments 

Open Price Systems 

Dumping 

Price Guarantees and Other Offers of Price Protection 

Rebates, Refunds 



(*) Trade-Practice Provisions in Codes of Fair Competition, by 

Daniel S. Gerig, Jr., and Beatrice Strasburger, pp. 2-3. 
9757 



-2- 

Allowances 

Rendering Financial Assistance to Buyers or Other Persons 

Conditional Sales 

Shipments Without Order 

Sales on Consignment or Memorandum 

Product and Maintenance Guarantees 

Returns and Adjustments 

Rendering Additional or Special Services 

Supplying Additional or Special Goods 

Forms of Offers, Orders, Agreements 

Contractual Obligations or Agreements 

Standards 

Labeling Requirements 

Piracy and Imitations 

Coercion, Trespassing and Interference 

Misrepresentation and Deception 

Shipping or Performing at Variance from Contract, 

Representation or Governmental Laws 
Discrimination in Prices, Terms, Services, and/or Privileges 
Customer Classification 
Trade and Industry Classification 
Quantity Discounts 
Dealings with Agents, Brokers or Other Controlled Sales 

Representatives 
Renting, Loaning or Leasing of Equipment or Property 
Bidding and Awarding 
Mechanisms Accepted by the Federal Trade Commission 

j In addition to the tabulation which appears in Part III, Section A, 
a series of footnotes explaining and expanding the material contained in 
the tabulation is presented in Part III, Section B. 



9757 



II, TPALE-PBACTICE COKFIREKCES 

A. Hi story an d Purp ose of Trade -P rac tic e Conference Procedure 

The Federal Trace Comrussior. Act was ai^ro-red September 28, 1914, 
and the Federal Trade Commission was organized i.iarch 13, 1915, under this 
Act. 

Under the Federal Trade Commission Act the Commission is: 

"empowered and directed to 'orev^nt persons, partnerships, or 
corporations, exce;ot 'banks and common carriars subject to the 
Act to regula.te commerce from using unfair methods of competi- 
tion in commerce." (*) 

The Commission is also empowered: 

"to make rules and regulations for the purpose of carrying out 
the provisions of the Act." (**) 

1. Trade-Practice Submittals. 

From October 3, 1919, to April 19, 1926, there were held 17 con- 
ferences whic_i were at that time designated "trade-practice submittals." 
The list of those trade-practice submittals follows: 

Anti-Hog Cholera Seram and Virus 

Band Instruments aanuf acturers 

Books (Subscript-ion Book Fabli fliers) 

Butter Manufacturers ( Southwest) 

Castile Soap 

Creamer 1 '' Industry (Omaha) 

"Engraved effects" Printing 

Gold Mounted Knives 

Gold Plated Finger Ping Manuf acturers 

Knit Goods Manufacturers 

Mending Cotton i.anuf acturers 

Package Macaroni Industry 

Paper Industry 

Pyroxylin Plastics Industry 

Retailer Furniture Healers, Hew York City 

Sheffield Silver-Plated Hollow Ware 

Standard Sheet Music Publishers 

The rules for the Gold Plated Finger Ring Manufacturers and for 
the Paper Industry are more in the nature of a Stimulation than a Trade- 
Practice Submittal. For the rbrolanation of "Stipulation" see page 9. 

The trade-practice submittal procedure, though of historical in- 
terest only, is outlined by the Federal Trace Commission as follows: 

( *) Federal Trade Commission Act, Section 5, paragraph 2. 
(**) Ibid, Section 6, subsection (g) . 

9757 



-4- 



Trade-Practice Submittal Procedure . 

"T'hen complaints come to the Commission alleging unfair 
methods of competition in Commerce, the ordinary proceeding is 
for the Commission to receive such an application for complaint, 
make a preliminary ex parte examination and if such preliminary 
examination seems to establish a prima facie case of unfair prac- 
tices, to. issue a formal written complaint. PROVIDED, of 
course, it is found that the public interest is involved. 

"It should be understood that a formal complaint issued 

by the Commission is not a judgment by the Commission by simply 

a declaration that a further and formal proceeding is deemed to 
be in the public interest. 

"In certain circumstances, as for example, when an unusually 
large number of complaints relating to a single industry are re- 
ceived within a short space of time, or when an industry itself 
seems to be perturbed over practices which are going on and which, 
if eliminated v/ould leave the industry more free to discharge 
its duty of service to the public, a trade-practice submittal 
may be used by the Commission as a means for solution instead of 
the more formal proceedings. 

"This trade-practice submittal consists of an invitation, 
which is in no sense a summons, for the whole industry or its 
representatives, to meet together in the presence of the Commis- 
sion and discuss the merits and demerits of practices which 
have been complained of to the Commission and an" other prac- 
tices which may be brought to the attention of the meeting. 

"At the end of the discussion, each of the practices which 
have bean examined are taken up separately, are submitted to the 
industry for an expression of opinion as to their fairness or 
unfairness, their usefulness or harmfulness. The Commission 
does not oarticipate in the meeting except to ask Questions 
which will tend to bring the 'hole natter clearl T " into the re- 
cord. 

"If the practically unanimous opinion of the representatives 
of the industry condemns a jiven practice, the Commission receives 
that expression of the industry as being founded on expert know- 
ledge, business experience and peculiar familiarit' 1- with the in- 
dustry, with respect to the condemned practices, and likewise 
the sanctioning of a practice by the industry, even though the 
propriety of that iDractice has been questioned by amplication 
for the issu£i.nce of a complaint, is similarly regarded as being 
the expression, ba.sed upon the experience of the industry and 
its business .judgment. 

"Such a practically unanimous expression on the part of a 
representative body of an industr}' is given great weight by the 
Commission in considering such oractices. It should be understood 



9757 . 



-5- 

that it represents no decision or judgment on the aart of the 
Commission and is in no sense binding u^on an - ' one not present 
at the meeting. For indeed is it binding upon any one who is 
present at the meeting but who dissents from the majority opin- 
ion. The effect is that tne weight of opinion of the industry- 
has been communicated to the Commission and that thereafter the 
Commission will feel it to be its dut]r in case comalaints are 
made to it of ? continuance of the condemned practices on the 
part of any member of the industry, to issue its formal com- 
plaint, after inquire and the public interest determined, in or- 
der that by means of a formal and orderly proceeding with an op- 
oortunity for subsequent court review, the judgment of the in- 
dustry may be subjected to the final test of the courts. Also 
in case of a division of opinion on any given practice, the Com- 
mission considers the cuestion to be so much in doubt that it 
should be left entirely open to be challenged, if any one de- 
sires to challenge it, and made the subject of a more formal 
proceeding. 

"To sum up then, the trade-practice submittal amounts to 
a reqtiest on the part of the Commission to a given industry that 
it give its oainion with respect to the fairness or unfairness 
of any trade-nractices which have grown up or are growing up and 
that this opinion is received by the Commission as the best and 
most authoritative judgment then obtainable, but that this judg- 
ment may be challenged by any member of the industry and there- 
after be made the subject of a more minute examination in a uro- 
ceedinj around which are t.irown all the safeguards of, a proceed- 
ing in court. 

"In a trade-practice submittal it is deemed to be proper 
for the memoers of the industry to discuss any and all subjects 
pertaining to the conduct and management of business and to any 
and all trade practices. A subject which is not deemed to be 
jroper to be discussed is ary question which bears on prices or 
price-fixing." (*) 

2. Trade Practice Conferences. 

The Division of Trade Practice Conferences was created en April 19, 
1925. (**) 

The Trade Practice Conference procedure is outlined by the Federal 
Tr le Com lission as follows: 

Trade-Practice Conference Procedure . 

"The first requisite of a trade-practice conference is an 
expression of desire on the part of a substantial majority of 
the members of an industry to eliminate unfair methods of com- 
petition and trade abuses and to i. irove comoetitive conditions. 
The procedure is as follovi : 

11 1 . Method of v. v.l'-i . -'■"- • '-■ - :.- ~:~i ce conference . 

In authorizing a trr.de-*pr? ' ^ . : "^ in is si on must 

(*) Package Macaroni I i try! ral Trade Commission pamphlet issued 

July 6, 1920, pps. 2 anc 3. 

(**) For order creati i t division of Tra.de Practice Conferences see 

Appendix A. 

9757 



~6- 

first be assured that the holding of such a conference is de- 
sirable and to the best interest of the industry/- and the pub- 
lic. An application, in the form of a petition or informal 
communication should contain the following information: 

"1. A brief description of the business for which 
the conference is intended, stating also the oroducts 
manufactured or the commodities distributed; the annual 
volume of production, volume of sales, capitalization of 
the industry, or like items should be approximated in 
order to furnish an idea, of the size and importance of 
the industry. 

"2. The authority of the person making the appli- 
cation must also be shown. If tae application is made by 
an association executive, a resolution showing the action 
of the association should be submitted, together with a 
statement showing the percentage of the entire industry 
represented by the association membership, which may be 
given on the basis of volume of business, or numerically, 
or both. If the application comes from an unorganized 
group, the percentage of the entire industry represented 
fyf the group applying for the conference should be indi- 
cated. 

"3. The application should state whether the con- 
ference is intended for all branches of the industry, or 
is to be limited to a particular branch of branches there- 
of. If the resolutions adopted by manufacturers, for 
example, are confined to practices which do not materially 
affect distributors, there would be no particular reason 
for including distributors; however, if the proposed ac- 
tion involves distribution, the distributors should be in- 
cluded. 

,T 4. The application should also set out the various 
unfair methods of competition, trace abuses, and unecono- 
mic and unethical practices which exist in the industry at 
the time the application is filed and which the industry 
desires to eliminate through the medium of a trade-practice 
conference. This, however, does not limit discussion at 
the conference to the particular subjects thus proposed, as 
the conference itself constitutes an open forum wherein an _r 
practice existing in the industry may be brought forward as 
a. proper subject for consideration. Any resolutions sub- 
mitted by a committee or member of the industry prior to 
the holding of a trade-practice conference are tentative 
and their introduction does not prohibit other members of 
the industry from presenting new or different resolutions. 

"If convenient, the application should be accompanied by 
a complete and accurate list of the names and addresses of all 
firms in the industrv, or such list may be furnished shortly 
thereafter. This list snoulc be divided or symbolized to in- 
dicate the types of concerns; i.e., manufacturers, distributors, 

9757 



-5- 

that it represents no decision or judgment on the part of the 
Commission and is in no sense binding upon anv one not present 
at the meeting. I vT or indeed is it binding upon any one who is 
present at the meeting but who dissents from the majority opin- 
ion. The effect is that tne weight of opinion of the industry- 
has been communicated to the Commission and that thereafter the 
Commission will feel it to be its duty in case complaints are 
mode to it of r continuance of the condemned practices on the 
part of any member of the industry, to issue its formal com- 
plaint, after inquiry and the public interest determined, in or- 
der that by means of a formal and orderly proceeding with an op- 
oortunity for subsequent court review, the judgment of the in- 
dustry may be subjected to the final test of the courts. Also 
in case of a division of opinion on any given practice, the Com- 
mission considers the cue st ion to be so much in doubt that it 
should be left entirely open to be challenged, if any one de- 
sires to challenge it, and made the subject of a more formal 
proceeding. 

"To sum up then, the trade-practice submittal amounts to 
a request on the part of the Commission to a given industry that 
it give its opinion with respect to the fairness or unfairness 
of any trade-practices which have grown up or are growing up and 
that this opinion is received by the Commission as the best and 
most authoritative judgment then obtainable, but that this judg- 
ment may be challenged by any member of the industry and there- 
after be made the subject of a more minute examination in a pro- 
ceeding around which are thrown all the safeguards of, a proceed- 
ing in court. 

"In a trade-practice submittal it is deemed to be proper 
for the members of the industry to discuss any and all subjects 
pertaining to the conduct and management of business and to any 
and all trade practices. A subject which is not deemed to be 
proper to be discussed is any question which bears on prices or 
price-fixing." (*) 

2. Trade Practice Conferences. 

The Division of Trade Practice Conferences was created on April 19, 
1925. (**) 

The Trade Practice Conference procedure is outlined by the Federal 
Trade Commission as follows: 

Trade-Practice Conference Procedure . 

"The first requisite of a trade-practice conference is an 
expression of desire on the part of a substantial majority of 
the members of an industry to eliminate unfair methods of com- 
petition and trade abuses nn< to improve competitive conditions. 
The procedure is as folio : 

" I . Method of i.v^l'-i.i • _ r j. [ — ■_" ' - r- :' ti :■:■ conference . 

In authorizing s trade-pr; ^i':' 3 tvfer nee, the Commission must 



(*) Package Macaroni Industry: 7 • 1 Tr; b Commission pamphlet issued 

July 6, 1920, pps. 2 and 3. 

(**) For order" creating the division of Trade Practice Conferences see 

Appendix A. 

9757 



-6- 

first be assured that the holding of such a conference is de- 
sirable and to the best interest of the industry and the pub- 
lic. An application, in the form of a petition or informal 
communication should contain the following information: 

"1. A brief description of the business for which 
the conference is intended, stating also the "oroducts 
manufactured or the commodities distributed; the annual 
volume of production, volume of sales, capitalization of 
the industry, or like items should be approximated in 
order to furnish an idea, of the size and importance of 
the industry. 

"2. The authority of the person making the appli- 
cation must also be shown. If the application is made by 
an association executive, a resolution showing the action 
of the association should be submitted, together with a 
statement showing the percentage of the entire industry 
represented by the association membership, which may be 
gi -en on the basis of volume of business, or numerically, 
or both. If the application comes from an unorganized 
group, the percentage of the entire industry represented 
by the group applying for the conference should be indi- 
cated. 

"3. The application should state whether the con- 
ference is intended for all branches of the industry, or 
is to be limited to a particular branch of branches there- 
of. If the resolutions adopted by manufacturers, for 
example, are confined to practices which do not materially 
affect distributors, there would be no particular reason 
for including distributors; however, if the proposed ac- 
tion involves distribution, the distributors should be in- 
cluded. 

"4. The application should also set out the various 
unfair methods of competition, trace abuses, and iinecono- 
mic and unethical practices which exist in the industry at 
the time the application is filed and which the industry 
desires to eliminate through the medium of a trade-practice 
conference. This, however, does not limit discussion at 
the conference to the particular subjects thus proposed, as 
the conference itself constitutes an open forum wherein an- r 
practice existing in the industry may be brought forward as 
a proper subject for consideration. Any resolutions sub- 
mitted by a committee or member of the industry prior to 
the holding of a trade-practice conference are tentative . . 
and their introduction does not prohibit other members of 
the industry from presenting new or different resolutions. 

"If convenient, the application should be accompanied by 
a complete and accurate list of the names and addresses of all 
firms in the industry, or such list may be furnished shortly 
thereafter. This list shoulc be divided or symbolized to in- 
dicate the types of concerns; i.e., manufacturers, distributors, 

9757 



-7- 



etc., which are to be included in the conference. 

"II. P rocedure f olloivir,,^ authorize tion bv the Commissi on . 
After a conference has been authorized by the Commission, a 
time and place are arranged and anyone engaged in the industry- 
may participate. Resolutions are introduced at the conference, 
freely discussed, end, if necessar, amended. 

"Following the conference, the proceedings are reported 
to ehe federal Trade Commission with appropriate recommenda- 
tions. If the rules are approved by the Commission, they 
are sent to a committee of the industry appointed to cooper- 
ate with the Commission, with the reouest that this committee 
report to the Commission whether it is willing to accept, on 
behalf of the industry, the rules a s approved by the Commis- 
sion. Following acceptance of the rules Dy such committee, 
every member of the industry is furnished with a copy of the 
Commission's action, together with a. form for his acceptance. 

"After a. trade-practice conference has been held, the 
Commission retains an active interest in the observance of 
the rules adopted by the industry and approved by the Commis- 
sion. " ( *) 

The Federal Trade Commission approved or accented Trade-Practice 
Rules for 143 industries before the passage of the National Industrial 
Recovery Act . 

The rules governing Trade-Practice Conferences for the Oil Industry 
and the Motion Picture Industry were rescinded. The rules for the 
Cottonseed Oil Mills Industry have been rescinded by the action of the 
Commission. The rules for the Trunk and Luggage and Brief Case Industry 
were later revised and submitted to representatives of the Industry for 
acceptance or rejection. The modified rules "ere never accepted by the 
Industry arc. consequently there are no rules in effect for this Industry. 

5. Stipulations. 

In addition to the issuance of an "order of cease and. desist" from 
unfair trade-practices, the Federal Trade Commission has adopted an in- 
formal procedure by use of so-called "Stipulations". Under this pro- 
cedure the respondent agrees to discontinue certain specific practices, 
do "ormal complaint is issued by the Federal Trade Commission and the 
n?: 2 c^ the respondent is not ma.de public. This method, has saved s con- 
sit arable amount of time and money and has reduced the number of formal 
complaints. 

4. Trade-Practice Conferences Since the Termination of the 

MSA Sod . 

By Executive Order No. 791S of S ■ . r ' ' , 1! , (**) the Presi- 

dent delegated to the ?■. -■■" :-rrl " -■ " ' ■ 1 ■ 1 ■- :• '1 is authority to ap- 

( *) Annual Report: Federal : Commission. Fiscal Tear ended June 30, 

1935. Part III. Trade-Practice C "erences, np. 95-96. 

(**) See Appendix 3, jfeecutiv Order, Delegation of Authority to the 

Federal Trade Commission to approve certain Trade-Practices. 

9757 



-8- 



prove trade-practice provisions of voluntary trade agreements under the 
National Industrial Recovery Act as extended (up to A-oril 1, 1936). 

For nearly a 7/esr two ways for voluntary elimination of unfair 
trade-practices have been open to industry: (1) Trade-Practice Confer- 
ences under the Federal Trade Commission Act; (2) Voluntary Trade Agree- 
ments under the rational Industrial Recovery Act as extended. The latter, 
however, cannot endure longer than the act which authorizes them. 

The rules agreed, upon in both cases replace the former NRA codes. 

Voluntary trade agreements under the National Industrial Recovery 
Act as extended must contain: (a) trade practice rules, approved by the 
Federal Trace Commission; and (b) labor provisions, approved by the Pres- 
ident. 

No labor provisions need, be included under the procedure of the 
Federal Tra,de Commission's Trade-Practice Conferences. 

To our knowledge, the following 16 industries have adooted trade- 
practice rules since the termination of NRA codes and submitted them to 
the Federal Trade Commission for its consideration and approval: 

.Asphalt, Shingle and Roofing Manufacturing Industry 
3uff and Polishing Wheel Manufacturing Industry 
Candle Manufacturing Industry 
Cotton Converting Industry 

Expanding and Specialty Paper Products Industry 
Fertilizer Indxistry 

Fire Extinguishing Appliance Manufacturing Industry 
Juvenile 7/heel Goods Industry 
Lad i e s. ' Han db ag Manuf s c turi ng I n dus t ry 
Paper Drinking Straw Manufacturing Industry 
Retail Automobile Dealers 
Rock and Slag Wool Manufacturing Industry 
Spiral Tube and Core Manufacturers of the Mid-Western 

Division of the Fibre Can and Tube Industry 
Steel Tubular and Firebox toiler Manufacturing Industry 
Vegetable Ivors'- Button Manufacturing Industry 
Wholesale Tobacco Trade 

The following industries: Asphalt Shingle and Roofing Industry; 
Candle Manufacturing Industry; Expanding and Specialty Paper Products In- 
dustry; Rock and Slag Industry and Wholesale Tobacco Trade have included 
Labor Provisions and referred them to the National Recovery Administra- 
tion. To our knowledge the trade-practice rules for the Wholesale Tobacco 
Trade Industry and. the Fire Extinguishing Appliance Manufacturing Industry 
have been aporoved by the Federal Trade Commission. The trade-practice 
rules for the Retail Automobile Dealers have been disapproved by the Fed- 
eral Trade Commission. 



9757 



-9- 

iii. sil;:jUY statiMeht or timee-practice coeibbijJC:: iules 

The general summary of trade-nractice conference rules is present- 
ed in two section. Section A contains a tabulation(*) of the number of 
trade-practice conferences by types of trade-practico conference rules. 
Section 3, by a scries of notes, explains anc expands the material in 
the t abul at i on . 

A. Tabulation of Trade Practice Conferences 1/ T.nes of Trade- 



Trade-practice conference rules of 143 trade-practice conferences 
and trade submittals are included in this tabulstion(**) 

A certain number of relatively unimportant trade-practice confer- 
ence rules have been omitted frc - 3 3 tabulation but are included in 
the list of ..Trade-Practice Conference rules. (***) 

The stubs on the left side of the tabulation show the type of 
the trade-practice conference rules adopted or accepted by the Pederal 
Trade Commission. Opposite these stabs are given the numbers of trade- 
practice conferences in which this type of rule appears. The first 
column contains the total of all trade-practice conferences end the 
others the totals for each of the 21 industry groups. (****) 

Each column is sub-divided into two groups, designated Group No. 1 
and Group Ho. 2. Group ho. 1 rules express unfair methods of competition, 
while Group ho. 2 contain: rules condemned by the industries as trade 
abuses, unethical or wasteful practices; rules recomuendin^ certain 
functions or approving certain useful practices. 

The number of trade practice conferences in Group ITo . 2 are fol- 
lowed in the tabulation by the following symbols: (a) Approved; (C) 

Condemned; (D) Discouraged; (g) hh oara ,ed; (r) Recommended. 

The Fedi r, 1 Tre.de Commission ives the following explanation of 

Group ho. 1 end Group ho. 2 rules. 

"Rules approved by the Commission relate to practices 
violative of the law anc". are desi rated group 1. Other re- 
solutions adopted by the industry, and received by the Com- 
mission as expressions of the trade on the subjects \ 
cover d, are classified as group 2. 

" Explanation of group 1 rules .- The unfair trade practices 
nich are embraced in group 1 rules are considered to be unfair 
methods of competition within the decisions of the Federal 

(*) See Chart following page 

(**) Eor list of Trade-Practice Conferences, . gefe Appendix C. 

(***) dor list of Trade-Practice Conference Rule! )ted or accepted 
by the Pederal Trade Commission, see Appendix D. 

(****)gor list of Industry r ijS, 3> A • ■endix L. 
9757 



-10- 

Trade Commission and the courts, and appropriate proceedings 
in the public interest will be taken by the Commission to pre- 
vent the use of such unlawful practices in or directly affecting 
interstate commerce . 

" gx^lanation of ;;rou: 2 rules .- The trade practices 
embraced in group 2 rules do not, ;->er se, constitute viola- 
tions of law. They are considered by the industry either 
to be unethical, uneconomic, or otherwise objectionable; or 
to be conducive to sound business methods which the industry 
desires to encourage and promote. Such rules, when they con- 
form to the above specifications and are not viola.tive of 
law, will be received by the Commission, but the observance 
of said rules must depend iipon and be accomplished through 
the cooperation of the members of the industry concerned, 
exercised in accordance with existing law. Where, however, 
such practices are used in such a manner as to become unfair 
methods of competition in coi.imerce or a violation of any law 
over which the Commission has jurisdiction, appropriate pro- 
ceedings will be instituted by the Coji.dscion as in the case 
of a violation of grotto 1 rules." (*) 

Contrary to the Trade-Practice Conference procedure, in the 
Trade-Practice Submittals the unfair methods of competition, i.e., 
practices in violation of law, are not distinguished irom other 
practices in violation of law, are not distinguished from other 
practices and trade abuses not illegal in themselves. The few rules of 
Trade-Practice Submittals have been classified on the chart under 
Group I7o . 2 . . ■ 

Rules referring to enticement of competitor's or customer's 
employees, interference with performance of contractual relations, 
commercial bribery, inaccurate or deceptive advertising, defamation 
of competitors, false disparagement of competitors' goods and dis- 
crimination in prices, which generally belong to group 1, have been 
tabulated on the chart under _,roup 2, when the rules were specified 
in Trade-Practice submittals. 

(The chert of Tabulation follows this page.) 



(*) Annual r;e"iort, Federal Trude Commission, Fiscal year ended June 30, 
1955. Part III. Trade-Practice Conferences, pp. 9o-9?. 

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B . i' lotes on I tens A ' -oearing i\ th; Tabulation . 

The series of notes which follow explain and expand the material 
in the tabulation. A note is incorporated for each group of Trade- 
Practice Conference riles listed in the. tabulation and the notes are 
arranged in the order in which the trade-practice rules are presented in 

the tabulation. 

The following types of Trade-Practice Conference rules have been 
adopted in the Trade— Practice Conferences; 

1. Cost Accounting Systems. 
A typical rule for the establishment of cost accounting systems 
is as follows: 

"It is the judgment of the Industry that an accurate know- 
ledge of cost is indispensable to intelligent and fair competition 
and the general adoption of accurate and standard methods of cost 
finding and estimating is recommended by the Industry." 

The rules for the Pabricators of Ornamental Iron Bronze and 
"Tire recommend also that: 

"adequate steps be taken to persuade architects to properly 
group and separately specify the metal work to definitely stipu- 
late what- is required as (a) structural steel and iron work, (b) 
ornamental iron work, (c) miscellaneous iron work, etc." 

Some of the rales define the term "cost" in the following way: 

"The term 'cost' in the opinion of the Industry should be 
interpreted to include amon : other items the cost of raw materials, 
transportation, manufacturing, depreciation, depletion, obsoles- 
cence, interest on investment, selling and administrative expense." 

2. ginihium Price Provisions. 

The standard form for this rule is as follows: 

a. Selling Below Cost. 

"The selling of goods or facilities below cost with the intent 
and with the effect of injuring a competitor, and where the effect 
may be to substantially lessen competition or tend to create a 
monopoly or to unreasonably restrain trade is unfair trade practice." 

3. Terms of Payment. 

The text of these rules is as follows: 

a. Discriminatory cash discounts. 

"I'Jic variable, practice of grantin ; to certain >urchasers cash 
discounts which are not allowed to other purchasers of the same class 



3 757 



-12- 

wliere the effect is to substantially lessen competition or un- 
reasonably restrain trade or tend to create a monopoly is an un- 
fair practice. 11 

b. Delayed billing. 

" Sending invoices an unreasonable time after the merchandise 
is shipped, preventing the buyer from marking and placing the mer- 
chandise on his shelves immediately upon arrival is condemned by 
Industry." 

c . Ad vane e d bl 1 1 i ng . 

"Sending invoices an unreasonable time in advance of the ship- 
ping of the merchandise, necessitating the taking of cash discounts 
before the merchandise is received and inspected is condemned by 
Industry." 

4. Freight and Transportation Terms. 

The nature of these rules is as follows: 

a. P.O.'". basis of selling (allowance in excess of 
actual amount) . 

"If products are sold on F.O.B. mill basis or F.O.B. sellers* 
warehouse, or city, the allowance of transportation or trucking 
charges in excess of the actual or published amount of such charge 
is considered an unfair trade-practice and is also condemned by 
Industry." 

t . Delivered basis of selling (allowance in excess of 
actual amount) . 

"If products are sold on delivered basis, transportation 
charges to be paid by the consignee, the allowance of transportation 
or trucking charges in excess of the actual .or published amount 
of such charges is considered an unfair trade-practice." 

c. Omitting freight charges in computing delivered prices. 

The failure to deduct full trans ortation charges in case 
products are purchased on delivered basis is considered unfair. 

d. Absorption by seller of packing and trucking charges 
beyond city limits. 

The granting of free trucking or transportation charges 

beyond city limits unless published with the price and allowed to 
all customers huvin ; ; similar Quantities within the same territory 
is considered an unfair trade practice. The failure of the seller 
to require the "rurehaser in each instance to pay published 
charger; for packing is condemned by Industry. 



9757 



-13- 

5. Shipments. 

The rules specified below illustrate the following practice: 

a. Delivery of products at wholesale plants into 
purchasers' v:a:on3 or trucks. 

"The practice of making; deliveries of _,asoline at refineries 
or Y7h.olesr.le plants into tank v:a pns or trucks operate:, by or for 
the mrchaser thereto is discoura jed. " 

b. Sellin of products from wagons or trucks to other 
motor vehicles. 

"Gasoline shall not be sold from tank wajohs or trucks to 
other motor vehicles." 

6. Open price Systems. 
Standard rules head as follows: 

a. Independent nxblication and circularization of 
price lists. 

"The Industry approves the practice of each individual mem- 
ber of the Industry independently publishing and circularizing 
to* the purchasing trade its own price lists." 

b. Terns of sale, definite part of price lists. 

"The Industry hereby records its approval of the practice of 
making the terms of sale a part of all published prices." 

c. Postin , of 'irices by distributors at point of 
delivery. 

"All. . . distributors, jobbers, and wholesalers shall 
conspicuously pest at each point from which they make delivery 
the several posted prices of products for each class of delivery 
for such deliveries at the time of delivery. Retailers, operators, 
serving consumers . . . shall conspicuously post at the place from 
which delivery is made prices at which the product is sold. 

d. Deviation from posted prices. 

"Any deviation from published or posted prices is considered 
unfair." 

e. Strict adherence to mblished prices and terras of 
sale . 

It is recommended that terms of sale shall be open and strictly 
adhered to, 



9757 



-14- 

f. Publication of advance or decline in prices. 

The following illustrates this rule: 

"The Industry approves the practice of each individual member 
of the Industry independently publishing and circulating to the 
purchasing trade its own prices and also notices of all advances, 
declines and other changes in prices after such changes have been 
made . " 

7. Dumping. 

The standard form of the rule is: 

a. Selling in marketing territories of competitors below 
cost or general market. 

"The practice of certain manufacturers and sellers of shipping 
quantities of merchandise into territories outside their particular 
territories and of selling such merchandise below the general market 
prevailing in such other territories into which shipments are made, 
seriously tend to demoralize the markets within the territories . . . 
and is condemned by Industry." 

8. Price Guarantees and Other Offers of Price Protection. 

a. Guarantee against price advance or decline. 

"The sale or offering for sale of any product . . . under any 
form of guarantee to the purchaser or proposed purchaser against 
either advance or protection against decline in the price of a said 
product is condemned by Industry." 

b. Blanket contracts. 

The acceptance of contracts without statement of specifications 
or blanket contracts is condemned by Industry. 

9. Rebates, Hefunds. 

a. Secret payment or discriminatory allowance of rebates, 
refunds or other concessions. 

The standard rule used in 94 Trade-Practice Conferences is as 
follows: 

"The secret paymant of discriminatory allowance of rebates, re- 
funds, commissions, or unearned discounts, whether in the form of 
money or otherwise ... is an unfair trade practice." 

10. Allowances. 

a. Discriminatory advertising allowances. 

Discriminatory or secret allowances or subsidies for advertising, 
promotion or exhibits, etc., are condemned. 

9757 



-15- ' 

11. Rendering Financial Assistance to Buyers or Other Persons. 

a. Subsidizing or financing professional or prominent 
users of products, buyers. 

Subsidizing of jobbers' salesmen; giving money to teachers, school 
officials, or representatives of public or private educational institu- 
tions; paying of salaries, fees to professional or prominent users of 
products, in order to influence sale is considered unfair. 

12. Conditional Sales. 

a. Sales on trial or approval. 

The China Recess Accessories Industry expresses its approval of 
the trade custom of a 30-day trial period. 

13. Shipments Without Order. 

The Gypsum Industry condemns; 

"The practice of making shipments other than those involving 
mere transfer of material to the warehouse or plant of shipper, 
without in each case having an order from the customer for the 
shipment at the time of making same." 

14. Sales on Consignment or Memorandum. 

A standard rule reads as follows; ' 

" The shipping of goods on consignment with the intent and 
v.' >"." . with the effect of injuring a: competitor and where the effect may 

be to substantially lessen competition or tend to create a monopoly 
or to unreasonably restrain trade is an' unfair trade practice." 

15. Product and Maintenance Guarantee. 

a. Uniform product guarantee. 

Uniform product guarantee is recommended by the manufacturers 
to be filed with purchaser. 

b. Product guarantee without provision for replacement 
of defective parts. 

"The issuance of guarantees against defective material 
and workmanship, coupled with, the guarantees of successful performance, 
which does not provide definitely for the replacement of defective parts 
on account of workmanship or material within a stated time, is con- 
demned by Industry." 

c. Misleading or deceptive product guarantee. 

"The issuance by manufacturers of agreements in the form of 



9757 



-16- 



a guarantee which contains untrue and misleading statements and 
re presentations in regard to the quality, characteristics, methods 
of contruction of their 'products is considered unfair." 

d. Product guarantee in compliance with. Federal or State 



Laws , 



The assembling "branch of the Cheese Industry recommends the fol- 
lowing rule: 

"That each cheese assembler shall reauire that each individual 
cheese maker, cheese factory operator, agent or owner, shall furnish 
to each assembler or purchaser of cheese, a written guarantee 
'„. _■: that his or their products comply with the Federal or State Laws de- 
fining cheese." 

16. Returns and Adjustments. 

a. Unwarranted return of merchandise. 

Unwarranted return of merchandise or purchasing merchandise and 
the returning of it is condemned by industry. 

b. Exchanging or correcting accepted merchandise held for 
unreasonable time. 

The Trade-Practice Conference of the Plywood Industry has adopted 
the following rule; 

"The Industry hereby condemns the practice of manufacturers or 
distributors ... to accept for correction any Plywood 'accepted and 
held by said "purchaser for an unreasonable time and damaged through 
incorrect storage or detrimental climatic conditions." 

17. Rendering Additional or Special Services. 

a. Free warehousing or storage. 

The Trade-Practice Conference for the Paperboard Industry has 
adopted the following rule: 

"it is the judgment of this Industry that all quoted prices 
should be on the basis of delivery upon completion..of manufacture. 
If the buyer requests a postponement of the shipment beyond the 
date originally specified a separate charge shall be made to cover 
the full costs or warehousing the. goods." 

b. Reconditioning, repairing, improvement or maintenance. 

Ignoring the cost of reconditionin :, improvements to existing 
structures of customers is considered unfair. 



9757 



-17- 

c. Other s-pecial or additional services. 

Special services to customers without appropriate charges are 
condemned by Industry. 

18. Supplying Additional or Special Goods. 

a. Free deals. 

Free deals are condemned by Industry. 

b. Samples free, or -..ic.de especially to specifications of 
prospective customers. 

The practice of distribution of free staples, except in small 
quantities, or submitting samples made especially for or according to 
the specifications of a prospective buyer is to be discontinued. 

c. Gifts, gratuities to purchasers, sellers, entertainment, 
with the purpose of influencing a sale. 

Direct or indirect, lavish,- excessive, pre-arranged entertainment; 
excessive personal gifts, donating funds, providing banquets or other 
entertainments for associations; giving of gratuities to p'or chasers; 
giving money ,r anything of value; and allowing unearned discounts for 
the purpose of influencing a sale are condemned by Industry. 

d. Premiums, prizes, gifts, lotteries in connection with 
sales'. 

Premiums, bonuses, prizes, gifts, special discounts, lotteries, 
wheels of fortune, games of chance, special discounts used in connection 
with sales are condemned by Industry. 

19. Forms of Offers, Orders, Agreements. 

a. Adoption of standard form of contract or sales pro- 
posal. 

Approval is recorded by industry of a uniform purchase contract 
and sales proposal form" which should be used in ell transactions and 
thoroughly protect the rights of both buyer and seller. 

b. Adoption of proper,, detailed invoice or bill of 

lading. 

Approval of the practice of involving of goods sold by showing- 
quantity, size, stock, total amount of order, amounts previously 
shipped, full information in connection with shipment, balance due on 
original order is recommended by Industry. 

20. Contractual Obligations or Agreements. 

a. Adherence to contract in letter and spirit. 



9757 



-18- 

Tlie following standard rule is recommended by Industry: 

"Contracts either written or oral are business obligations 
which should be performed in letter and spirit." 

b. Violation of agreement by buyer or seller. 

A typical form of this rule is as follows: 

"Violation by either party, buyer or seller, of an agreement 
between them is condemned by Industry." 

21. Standards. 

a. Adoption of product standards. 

A number of industries approve the establishment of minimum stand- 
ards, standards of grade and quality, provisions and specifications of 
simplified practice recommendations, standard methods of installation, 
standard of size, etc. 

b. Avoidance of product standards. 

Some industries consider the avoidance of product standards unfair. 

c. Adoption of packaging and container standards. 

The adoption of packaging and container standards is approved by 
some industries. 

d. Avoidance of packaging and container standards. 

Certain industries consider the avoidance of packaging and con- 
tainer standards unfair methods, of competition. 

e. Standard methods of classification, grading, measuring! 

Standard methods of classifying, grading and measuring are approved 
by Industry. 

f. Allowances, tolerances on dimensions. 

The practice of allowances, tolerances on dimensions is prescribed 
by some industries. 

g. Safety standards. 

The Flexible Cord and Heater Cord Industry has approved the rule 
which follows; 

"It is a commonly accepted fact by insurance interests, 
electrical inspectors, municipal and ..state authorities and manu- 
facturers that electrical wires, cables, and cords which are not 
of the character recognized by the National Electrical Code for 
construction and usage, as approved by the American Standards 



9757 



-19- 

Association, and standards which are established by the 
Underwriters' Laboratories, Inc., in cooperation with the 
Industry and arcnroverl by the .American Standards Association, 
are a distinct and increasin hazard to life and property. 

"It is also a comv.ionly accepted f ..ct that the standards 
above referred to represent minimum safety requirements and 
present no manufacturin. difficulties. Therefore, the Industry 
condemns the maauf acturb, distribution and sale of electrical 
wires, cables and cords not ms.de to comply with the above 
mentioned minimum safety standards for construction and usa, ;e, 
but which are designed only to under-sell those products pro- 
viding minimum safety." 



9757 



-20- 

22. Labeling Requirements 4 

a. Failure to label products as to quality or 
other physical properties or characteristics. 

A number of industries consider unfair the manufacture and sale of 
goods which are not plainly and accurately described, branded, graded 
or stamped. Some of the industries also disapprove the shipment of un- 
labeled products which makes possible an easy substitution of merchan- 
dise of lover quality for that of higher quality. 

b. Labeling of products as to quality or other 
physical properties or characteristics. 

A number of industries record their approval of labeling or iden- 
tifying oroducts so as to establish their grade, quality and quantity. 

c. Labeling of oroducts as to origin or trade 
mark. 

Some of the industries recommend the placing of the manufacturers 1 
trade-mark conspicuously and indelibly or the name and address of the 
packer on the label. 

23. Piracy and Imitations. 

a. Piracy of styles, designs, ideas, sketches, etc. 

A standard form of this rule reads as follows: 

"The practice of usurping designs, styles, or patterns, 
originated by competitors and appropriating them for 
one's own use ... is condemned by Industry." 

b. Imitation of trade mark or other idenfication 
of competitors. 

A complete text of the rale is as follows: 

"The imitation of the trade marks, trade names, slogans 
or other marks of identification of competitors, having 
the tendency and capacity to mislead or deceive purchas- 
ers or orosnective purchasers is an unfair trade prac- 
tice." 

c. Patent or trade mark infringement; dealing 
directly with original infringers only. 

A standard form of a rule reads as follows* 

"The owner of a patent or trade mark should in fairness, 
deal directly with the alleged original infringor rather 
than attemot to intimidate his customers." 



9757 



-21- 

24. Coercion, Trespass and Interference. 

a. Abuse of buying and selling purer* 

The following practice is condemned by Industry: 

"The abuse of buying power to force uneconomic or 
unjust terms of sale upon sellers and the abuse of 
selling power to force uneconomic or unjust terms 
of sale upon buyers." 

b. Exclusion of manufacturer or product. 

The practice of joint trade action to exclude any manufacturer, 
merchant or product from the market is considered unfair. 

c. Sales contingent upon buyer's agreement not to 
deal with competitor. 

Leasing or selling goods or equipment with the understanding that 
the lessee or purchaser thereof shall not use or deal in the goods or 
equipment of a competitor of the lessor or seller is considered unfair 
trade-practice by Industry. 

d. Unjustified threats of suits for patent or 
trade mark infringement. 

The Industry considers the following an unfair trade-practice: 

"The circulation of threats of suits for infringement 
of pa.tent or trade mark among customers or competitors, 
not made in good faith but for the purpose and with the 
effect of harassing and intimidating customers." 

e. Repudiation or threats of repudiation of contracts. 

The following rule is standard for a number of industries: 

"The repudiation of contracts by sellers on a rising 
market, or by buyers on a declining market, is equally 
reprehensible and: is condemned by Industry." 

The failure to fill orders or perform contracts, to live up to the 
promises in contracts or agreements, the practice of neglecting or fail- 
ing to return signed contracts as a ground of repudiation of agreements 
is also condemned by industry. ■ ■ 

f. Espio'nage of competitors. 

The following is considered unfair by a number of industries: 

"Securing information from competitors concerning 
their business by false or misleading statements or 



9757 



— pp— 

representations or "by false .impersonations of one 
in authority and £he wrongful use thereof to un- 
duly hinder or stifle the competition of such com- 
petitors." 

Surreptitiously obtaining information relative to competitor's 
"bids or obtaining information from a competitor Toy any method of 
espionage is also considered unfair. 

g. Enticement of competitor's or customers' 
employees. 

The following rule may he quoted as an example: 

"Wilfully enticing away the employees of competitors' 
with the mriose and effect of unduly hampering, in- 
juring or embaras sing. competitors in their business 
is considered unfair." 

The solicitation of services of salesmen or employees of other 
members of the Industry without notice to the employer is also con- 
sidered unfair. 

ho Use of competitors' equipment or 'containers 
without owner's consent. 

The unauthorized use of returnable containers belonging to a com- 
petitor; the use without the consent of the owner of containers or other 
property employed in shipment; 23urchp.se or sale of products in used con- 
tainers, bearing the brand, l^bel or name of the producers or dealers 
other than the one producing or selling, with the intent of appropriating 
the patronage, property or business of a competitor; the adoption for 
one's own use oj photostatic, photographic or other means of reproduc- 
tion of the ;lans, cuts or other illustrations contained in publica- 
tions originated by, competitors is also considered unfair. 

i. Removal of manufacturers' label. 

Concealment or removal of grade or plant identification symbols or 
painting on any sign or colors of another company is considered unfair. 

j. Inciting, aiding, abetting competitors' labor 
troubles. 

The following is considered unfair by industry: 

"To incite, aid, or abet ... anything unlawful in 
connection with any strike, dispute, labor troubles, 
between any competitor and his employees, with the 
intent to cause such competitor monetary loss or loss 
of business, or other embarrassment*" 

k. Coercing the purchaser by demanding the pur- 
chase of goods additional to those requested. 



9757 



-23- 

Coercing the purchase of several Products as a condition to the 
purchase of one or more products under exclusive control of the seller 
or to refuse to sell the customer one class of products or certain 
items unless he "buys afso another class or "buys all his products is 
considered unfair. 

1. Inducing Breach of Contractual Relations. 

A standard form of this rule is a.s follows: 

"Maliciously or wilfully inducing or attempting to 
induce the "breach of existing contracts between compe- 
titors and their customers "by any false or deceptive 
moans whatsoever is unfair trade-practice." 



m. Interference with performance or contrac- 
tual relations. 

The complete text of this rule follows: 

"Interfering with or obstructing the performance of 
any contractual duties or services by any means, with 
the purpose and effect of unduly hampering, injuring, 
or embarassing competitors in their business is un- 
fair trade-practice." 

n. Commercial bribery. 

"The secret payment or allowance to the officers, 
agents or employees of buyers of commissions, bonuses, 
rebates, or subsidies of any kind, nature or descrip- 
tion . . . The paying, promising to pay or supplying 
to any agent or any intermediary, without the know- 
ledge of his principle of money, gratuities, commis- 
sions or other consideration of any character for the 
purpose of inducing or compensating for his sale is 
considered unfair." 

o. Interference with competitors' rights to choose 
suppliers. 

The following practice is considered unfair by industry: 

"The interference with a competitor's right to pur- 
chase his nroducts and supplies from whomsoever he chooses, 
or to sell the same to whomsoever he chooses is considered 
unfair." 

p.# Coercion to force revision or maintenance 
of prices. 

The following practice is condemned by industry: 



9757 



-24- 



"Ho manufacturer shall be under obligation to change 
or maintain his prices to meet the views of p.ny raanu- 
facturer,' or group of manufacturers." 

25. Misrepresentation and Deception. 

a. Misrepresentation of products. 

False description of products, misrepresentation of grade, quality, 
point of origin, size, style, caliber, bursting strength, substance, 
measurement, heating capacity'! quantity, place or origin of production, 
capacity, character or manufacture of products; the use of terms or ex- 
pressions in the sale or offering for sale in' a manner calculated to 
mislead or deceive the trade, and the false use of words in connection 
with sales of products; selling or offering for sale products of an in- 
dustry containing in whole or in part materials which have previously 
been used; altering, repairing, pr rebuilding products without disclos- 
ing the fret to the ultimate purchaser; misrepresentation of -oroducts 
in a sale, offering for sale, invoice, bill of lading, or other docu- 
ment of title are considered unfair trade-practices. 

■ b. Misrepresentation of prices. 

Offering for sale merchandise at the Drice reduced from a marked 
up or fictitious price; deceptive prices on certain temporarily selected 
brands of advertised - roducts; publishing false or fictitious prices, 
discounts, or terms of sale; issuing fictitious bargain price lists; 
using inflated, deflated or misleading price quotations; using any unecon- 
omic or t misleading selling prices; offering to perform certain services. 
at the stated price and then to refuse it, except at an additional charge; 
accepting work at the stated price and u jon delivery try to collect or 
attempt to try to collect a surplus charge for claimed additional ser- 
vices performed are considered unfair trade practices. 

c. Misrepresentation of services, forms of busi- 
ness, affiliations, marketing conditions, 
and/or origin. 

Listing or ' stating inaccurately the relationship of members of a 
faculty, advisory board, to an educationa.l institution; false statements 
or representations relating to actual or probable earnings of clients; 
using names which indicate or imply that an educational institution is 
a. plant, factory, shoo association other than an institution of learn- 
ing; representation, advertisement or statement that a concern is a manu- 
facturer, owner or operator of a mill producing en article of commerce 
when in fa.ct such concern is not engaged in manufacturing such an arti- 
cle; promise or a guarantee of a job by an educational institution or Drorai: 
of a raise in pay when the case is not so; the misrepresentation of the 
character and scope of any service offered; misrepresentation as to the 
ability of selling goods at reduced prices when the quantity of said goods 
is entirely inadequate to supply the reasonable trade; misrepresentation 
by designs, pictures, or statements that a concern occupies or utilizes 



9757 



-25- 

a factory or business space when only a certain part of it is actually 
occupied; using pictures or other symbols in connection with sales, 
advertisements of products with a tendency to mislead the purchasing 
public; misuse of such pictures as the National Capitol, Uncle Sam 9 
etc«; and misuse of any title or statement that would lead to the belief 
that the institution has a connection with the United States Government 
are considered unfair. 

d. False, fictitious, misdated or imcomplete con- 
tracts, invoices, bills of lading or other docu- 
ments of title# 

~ A standard form of trade-practice which is condemned by a number 
of industries follows: 

"The practice of withholding from or inserting in 
the invoice or contract statements which make the in- 
voice or contract a false record, wholly or in part, 
of the transaction represented on the face thereof." 

Invoicing a lesser quantity than the actual amount shipped; with- 
holding from or inserting in a bill of lading statements which make same 
a false record; issuance of fictitious bills of lading or other docu- 
ments of title; inclusion of erroneous weights therein; overbilling of 
shipments; post-dating or pre-dating of contracts; issuance of warehouse 
receipts when the -oroducts for which such rece'ipts are is-sued have not 
been actually received; and issuance of negotiable warehousing receipts 
for products of which the one issuing such receipts is part or sole owner 
without stating the fact of such ownership are considered unfair. 

e. Inaccurate or dece^ntive advertising. 

A typical rule adopted by many industries is as follows: 

"The making or causing or permitting to be made or 
published any false, untrue, or deceptive statement by 
way of advertisement or otherwise concerning the grade, 
quality, quantity, substance, character, nature, origin, 
size or preparation of any product of the industry hav- 
ing a tendency and capacity to mislead or deceive pur- 
chasers is an unfair trade-practice." 

Using 'false, misleading or exaggerated testimonials in advertising 
or selling; publishing testimonials regarding exceptional results, and 
misleadingly worded; selling under the inaccurate or untruthful claims 
are considered unfair e 

f. Deceptive labeling, branding, marking or packing. 
A standard rule reads as follows: 



9757 



-26- 

" The false marking or branding of products of the Indus- 
try, with the effect of misleading or deceiving purchas- 
ers with respect to the quantity, quality,-. grade or sub- 
stance of goods purchased is an unfair trade-practice." 

False marking or branding of products with respect to the type, 
weight, metal, make or finish, specifications, origin; stamping of false 
grade or brand identification symbols; false certification of products; 
false packing or grading of products; using deceptively slack filled or 
shaped containers or packages; selling merchandise packed in odd sized 
or odd shaped containers or packages simulating in size or shape, stan- 
dard sizes or shapes of containers or packages; and certification of 
products by other than the producers are unfair trade-practices. 

g. Deceptive 'selling methods. 

A number of industries have adopted the following standard rule: 

"The selling cr offering for sale of any product or 
facility or service of the industry by any false means 
or device which has the tendency and capacity to mis- 
lead or deceive customers or prospective customers is 
an unfair trade-practice." 

h. Defamation of competitors. 

A standard form of rule adopted by a number of industries is as 
follows: 

"The defamation of competitors by falsely imputing to 
% them dishonorable conduct, inability to perform con- 
tracts, questionable credit standing, or by other 
false representations is unfair trade-practice." 

i, False disparagement of competitors' goods. 

A standard form of rule is: 

"False disparagement of the grade or quality of compe- 
titors' goods -with the tendency and capacity to mislead 
or deceive purchasers or prospective purchasers, and 
the tendency to injuriously affect the business of such 
competitors is an unfair trade-practice." 

j. Deceptive promises of delivery. 

Failure to deliver merchandise -at the appointed time or promising 
delivery dates which could not be live up to; failure to ship products 
of Industry promptly as agreed are condemned by industry. 

26. Shipping or Performing at Variance from Contract, 
Representation or Governmental Laws. 



9757 



-27- 

A complete text of a standard rule is quoted as a typical example! 

"The practice of shipping- or delivering products which 
do not conform to the samples submitted or representa- 
tions made, prior to securing the orders; without the 
consent of the purchasers to such substitution,, and 
with the effect of deceiving or misleading purchasers 
and the tendency to injuriously affect the business 
of competitors is unfair trr de-practice. " 

Using inferior materials which tend to bring the products of in- 
dustry into disrepute; substituting inferior grades of materials against 
a contract calling for a particular grade, without the permission of 
the purchaser and ultimate consumer; using or substituting materials 
inferior in quality to those specified "oy the purchaser; substituting 
another article inferior in quality for the kind ordered without not- 
ice to the buyer; and substituting products for other products ordered 
without permission, which may be dangerous to the public health are 
unfair trade-practices. 

Use of materials or methods of installation, manufacture and 
erection not in accordance with Governmental Laws; and selling products 
which do not conform to the requirement of an Act of Congress are 
condemned. 

27. Discrimination in Prices, Terms, Services and/or Privileges. 

a» Discrimination in prices. 

A standard rule adopted by a great number of industries reads as 
follows: 

"It is an unfair tra.de oractice for any nerson engaged 
in inter-state commerce, in the course of such commerce, 
either directly or indirectly, to discriminate in price 
between different purchasers of commodities, where the 
effect of such discrimination may be to substantially 
lessen competition or tend to create a. monopoly in any 
line of commerce; provided that nothing herein contained 
shall prevent discrimination in price between purchasers 
of the same class on account of differences in the grade, 
quality or quantity of the commodity sold, or that makes 
only due allowance for differences in the cost of' selling 
or transportation, or discrimina.tion in price in the same 
or different communities made in good faith to meet com- 
petition; and provided further that nothing herein contained 
shall prevent persons engaged in selling the products of 
this industry in commerce from selecting their own' customers 
in bona fide transactions and not in restraint of trade." 



9757 



-28. 



Some of the Rules specify Section 2 of the Clayton Act which reads 
■as follows: 

"That it shall be unlawful for any person engaged 
in commerce, in the course of such commerce, either 
directly or indirectly, to discriminate in price be- 
tween different purchasers of commodities, which 
commodities are sold for use, consumption, or resale 
within the United States, or any Territory thereof 
or the District of Columbia, or any insular possess- 
ion, or other place under the jurisdiction of the 
United States, where the effect of such discrimina- 
tion may be to substantially lessen competition or 
tend to create a monopoly in any line of commerce; 
PROVIDE?, That nothing herein contained shall pre- 
vent discrimination i n price between purchasers of 
commodities on account of differences in the grade, 
quality, or quantity of the commodity sold, or that 
makes only due allowance for difference in the cost 
of selling or transportation, or discrimination in 
price in the same or different communities made in 
■ good faith to meet competition: AID PROVIDED FUR- 
THER, That nothing herein contained shall prevent 
persons engaged in selling goods, wares, or merchan- 
dise in commerce from selecting their own custom- 
ers in bona fide transactions and not in restraint 
of trade." 

b. Discrimination in services or privileges. 

A standard rule for a great number of industries reads as follows: 

"Secretly extending to certain purchasers special 
services or privileges not extended to all purchas- 
ers under like terms and conditions with the intent 
and with the effect of injuring a competitor and 
where the effect may be to substantially lessen 
competition or tend to create a monopoly or to un- 
reasonably restrain trade is an unfair trade-practice." 

Inducement to customer, secretly made, whether in the form of money, 
discount, credit or otherwise, not extended to all purchasers under like 
terms and conditions; and extending to certain purchasers of special 
privileges including discriminatory allowances for service not extended 
to all purchasers are also considered unfair. 

28, Customer Classification. 

a. Definition of customer classes. 

Some of the definitions are given here as an example: 



9757 



-29- 

Definition of a wholesale dif-triVi.it or . 

"The Industry herobv records its ap Jroval of the de- 
finition of a qualified wholesale distributor to "be 
one whose principal business is selling to the retail 
distributor-. 1 ' 

Definition of a /jobber . 

"A jobber is a merchant who, as a middle-nan, purchases 
goods in larger Quantities for resale in smaller Quan- 
tities, principal"'^ to retailers. The quantities bought 
by tno jobbor nay vary from a fraction of a carload to 
many carloads; it being the character not of his buying, 
but of his selling, that marks him as a johher." 

Definition of a dealer * 

"A dealer is defined as one who sells to the consumer 
or user of Jie merchandise," 

29. Trade and Industry Classification. 

a. Definition of trade and industry classes. 

Some of the definitions are given here as follows: 

Definition of a qualified wool stock merchant . 

"The Industry hereby records its approval of the de- 
finition of a qualified . . . merchant to be one whose 
principal busings is selling ... to manufacturers 
and/ or to dealers," 

Definition of a quali^ ' Led m a nufacturer. 

"The Industry hereby records its approval of the de- 
finition of a qualified manufacturer of ... to he 
one wno manufactures regularly and solely for sale 
to consumers, wholesalers and distributors." 

Definition of a mill, fabricator and errctor, 

"A mill is a manuf a.cfrurer of structural ma.teriaJs for 
construction purposes. A fabricator is a, concern who 
fabricates Dlain materials for con-traction ourposes. 
An erector is a concern that generally contracts with 
buyers to furnish and erect structural steel fa.brica.ted 
by himself or others," 

Definition of a, contractor , 

"The Industry records its approval of the definition 
of a • , . contractor to be one whose principal busi- 
ness is buying, fabricating and reselling ..." 



9757 



-30- 

30. Quantity Discount. 

a. Price differentials "oased.cn quantity discounts. 

The practice of price differentials for quantity purchases is a 
recognized trade custom and helps to prevent temporary curtailing of 
production. Such price differentials are approved "by Industry only in 
cases 'There such differentials cure uniform to all purchasers of like 
quant i ty . 

b. Price differentials based on combined shipments. 

The practice of quantity prices based on combined shipments; the 
combining of two or more less than carload lots of the same or differ- 
ent products in one carload shipment; and selling products to separate 
purchasers as full carload or other group lots and allowing price dif- 
ferentials are condemned by industry. 

31. Dealings with Agents, Brokers, or Other Controlled 
Sales Re-^resenta-tives. 

a. Definition of agents, brokers or other controlled 
sales representatives. 

The following is a definition of a. broker: 

"Brokers are selling agents who negotiate the purchase 
or sale of . . . products. They have no interest in 
the products ... they handle, do not collect accounts, 
are not responsible for the credit of their customers, 
and their compensation is a definite fee or commission." 

b. Practice of Disregarding Commission or Pees to 
Agents, Brokers or other Controlled Sales Re- 
presentatives. 

The practice of disregarding the rights of an exclusive agent by 
giving his commission to those not entitled thereto is condemned by 
Industry. 

c. Dealing with other than bona fide agents, brokers 
or other controlled sales representa.tives. 

The practice of dealing with other than authorized distributors or 
agents is condemned by Industry. 



9757 



-31- 

32. Renting, Loaning or Leasing of Equipment or Property. 

Classified under this heading are rules condemning the follow- 
ing practices: 

Furnishing or lending to any producer, dealer or shipper 
any equipment, containers or other property for the purpose of influenc- 
ing shipments of products; the leasing of service or filling stations or 
sites for same for an unreasonably small rent; payment of rentals to dis- 
tributors or jobbers for the privilege of installing pumps, tanks, or 
other equipment; loaning standard advertising devices except trade marked; 
and payment of rentals for the privilege of installing equipment or for 
displaying advertising on premises where products are sold. 

33. Bidding and Awarding. 

The following standard rules are set forth as an example: 

a. Adoption of "one-bid" policy. 

The practice of "one-bid" policy is approved by industry. 

b. Misleading or deceiving any bidder relative to competitors' 
bids. 

"To mislead or deceive any bidder as to the amounts 
and conditions of other bids, or with any other 
false information for the purpose of inducing him 
to cut his own is condemned by Industry." 

c. Fake, fictitious or "blind" bias. 

The practice of making fake, fictitious or "blind" bids is 
condemned by industry. 

d. Intentionally leaving out of materials from specifications. 

"The practice of bidders or subbidders of intention- 
ally leaving out of their bids certain material 
called for by the plans and specifications, or the 
failure to make any mention in their bids as to 
whether certain work is or is not to be erected 
for the particular price submitted, thereby enabling 
a bidder, after the bids have been opened, to state, 
if necessary to secure the bid, that the missing 
material or the cost of erection was or was not 
included in his bid, and in this way unfairly to 
underbid his competitor, i-; condemned by the Indus- 
try." 

e. Lowering one 1 s bids without changes in specifications. 

"Tiie practice of lowering one's bid without changes 
in the specifications justifying same and without 
regard to the possibility of being able to .comply 



9757 



-32- 

with the specifications, frequently necessitates 
'skinning the job 1 , and the use of inferior 
materials, designs, and workmanship, and is con- 
demned by the Industry." 

f. Adoption of uniform rules for calling for bids. 

"The industry favor s the adoption of the following 
rules for calling for bids: 

"(a) In all cases where competitive bids are re- 
quested no one should be invited to bid to wiiom 
the contract would not be willingly awarded in 
the case his bid is the most acceptable in itself. 

"(b) .There accurate estimates are desired for 
information only, a reasonable fee or fees should 
be paid to the parties preparing them. 

"(c) Plans and specifications should be sufficient- 
ly complete to enable competent bidders to estimate 
accurately the amount of material and labor requir- 
ed. 

"(d) Invited bidders, provided they actually sub- 
mit bids, should not be required to pay for the 
use of plans and specifications. 

"(e) A reasonable time should be allowed for pre- 
paration of estimates." 

g. Submitting sub-bids after the general contract has been 
awarded. 

"The practice of submitting subbids after the general 
contract has been awarded, where subbids have been 
secured, particularly after the subbids on the same 
work have been opened and the subbidders know the 
amount of the lowest subbid on the original bidding, 
is a fertile field for fraud and chicanery, makes a 
farce out of the wholesome practice of competitive 
bidding, and is condemned by the industry." 

h. Revision of bids after opening; handling of same as original 
bid. 

"If plans and specif ica.ticns are changed and new bids 
called for after the original bids have been submitted 
and opened the same fairness should be obtained as 
with the originalbids. " 

i. Bid-shopping practices. 

"It is a frequent practice to submit bids to general 
contractors, who in turn use the lowest acceptable 
price from the several trades in mailing up their 
bids on a general contract. Many general contrac- 
9757 



-33- 

tors after securing the general contract then 
reopen the bidding for the same operation, 
commonly known as ' shopping' which practice in- 
volves deception and misrepresentation, lowering 
the standard and quality. Such practice is con- 
demned by the industry." 

j. Equalization of buyers' privileges of "bidding with sellers' 
privileges of offering. 

"It being for the best interests of producers and 
consumers that buyers be accorded the same privi- 
leges of bidding that sellers have of offering." 

k. Submission of additional information or interpretation in 
regards to bids to all bidders simultaneously. 

"'Where a bidder requests an interpretation of some 
feature of the plans and/ or specifications from 
the buyer or his representative before submitting 
his bid, which would materially affect the cost 
of the work, the same information should be sub- 
mitted to all other bidders by the buyer or his 
representatives. " 

1. Collusion with awarding authority. 

"The inducing or attempting to induce an architect, 
contractor, or builder to reveal to any bidder on 
a competitive job information relative to bids 
already received, which information would give 
the favored bidder an advantage in the preparation 
of his own bid, is condemned by the industry." 

"To induce or attempt to induce an architect, 
contractor, or builder ;to reveal to a bidder the 
amounts and condition" of any bid received on a 
competitive job, with a view of giving the 
favored concern an opportunity to meet or cut 
below the lowest bid, whether the favored con- 
cern was one of the original bidders or not, is 
condemned by the industry." 

m. Bidding or quoting on projects unable to carry out. 

"The practice of some contractors of nuoting on 
projects which they are not able to carry out 
is condemned by industry." 

34. Mechanisms Accepted by the Federal Trade Commission. 

The following rules may serve as an illustration: 

a. Practice of handling disputes in a fair and reasonable 
manner. 



9757 



~34~ 

"The industry approves the practice of handling 
disputes in a fair and, reasonable manner coupled 
With a spirit o± moderation and good will and 
every effort should be made by the disputants 
themselves to arrive at an agreement." 

b. Formal arbitration as means of settlement of disputes. 

"If unable to do so (as outlined in the rule above), 
they should agree, if possible, upon an arbitra- 
tion under some of the prevailing Codes." 

The rules of the Flexible Cord and Ileat.er Cord Industries recommend 
that tie matter should be referred to the Conciliation Committee of the 
National Electrical' Uamifac"t"oi'"crs '._:.s3ooi'i,t'i0~; 

In ,7ood- Turning, Hickory Handle Branch Industry, either party may 
call the Chief Inspector of the National Association of Wood- Turners 
whose decision shall be final. 

c. Creation of trade-practice committees. 

The creation of trade-practice committees to cooperate with the 
Federal Trade Commission in order to put into effect the rules and regu- 
lations adopted by the Trade-Practice Conferences is approved. 

d. Distribution of information in regard to credit accounts, 
past due,, delinquent and slow. 

"The Industry records its approval of distributing 
to its members information covering delinouent 
and slow accounts insofar as this may be lawfully 
done . " 

e. Compilation and distribution of statistics in regard to 
production, distribution and marketing. 

Gathering and disseminating complete statistical information concern- 
ing past transactions with reference to production, distribution, market- 
ing of products, cost and price in actual sales are approved by industry. 

f. Endorsement and observance of approved trade-practice 
rules. 

The observance of Trade-Practice Conference Pules is approved by in- 
dustry. 

g. Condemnation of trade abuses and unfair methods of compe- 
tition. 

Unfair methods of competition, fraudulent practices in commerce, 
wasteful practices and trade abuses are condemned by industry. 

h. Aiding or, abetting of the use of unfair trade- practice 
rules. 

"For any person, firm or corporation, knowingly 
9757 



-35- 

to aid or abet another in the use of unfair trade- 
practices, is an unfair trade-practice." 

i. Deviation from established standards of industry. 

Deviation from established standards of industry is condemned. 

j. Sale of products on the basis of quality and intrinsic 
value . 

Industry encourages the sale of products on the basis of quality and 
intrinsic value. 

k. Recommendation of consumers' protection. 

The Barre Granite Industry has adopted the following rule: 

"All members of this Industry shall protect the consumer 
not only as far as is required by law but as required by 
good morals and best ethics of business." 

1. Extension of credit to dealers engaging in unfair methods 
of competition. 

The Household Furniture Industry lias adopted the following rale: 

"The Industry condemns extending credit to dealers engaging 
in unfair methods of competition. " 



9757 



-36- 



APPEKDIX A. 



■ r;. i" 



ORDER CREATING A DIVISION OF 
TRADE PRACTICE CONFERENCES 



9757 



-37- 



Order Creating a Division of Trade Practice Conferences 

April 12, 1926. 

G3DE3SD, That there be, and hereby is, created a division to be 
called the division of trade practice conferences, the head, of this 
division to be called the director of trade practice conferences. 
There shall also be an assistant head called the assistant director, 
who shall assist in the performance of the duties of the director, and 
who, in the absence of the director, shall function as acting director. 
he shall have such other assistance as may be assigned him by tie com- 
mission. 

The work of this division and the duties of the director shall be 
such as hereinafter are set forth and as may be involved in the follow- 
ing modification of the procedure regarding trade practice submittals or 
conferences: 

1. (Then ever the commission shall conclude that a. trade practice 
submittal or conference is desirable, or whenever an application for a 
trade practice submittal or conference shall come to the commission, the 
same shall be referred to tnis division. Further, whenever it shall 
come to the attention of the chief counsel, the board of review, the 
chief examiner, or the chief trial examiner that a trade practice, deemed 
to be unfair to competitors and/or prejudicial to the public is prevalent 
in an industry, report of such fact shall be made forthwith to the com- 
mission and be referred to this division. 

2. Upon such reference the director shall make an investigation 
for the "ourpose of ascertaining the extent of the practice in the in- 
dustry and make a report direct to the commission together with a 
recommendation as to the advisability of holding a conference or sub- 
mi t tal . 

3. Upon receipt of such report from the director, the commission 
shall determine whether a trade practice conference (or submittal) 
shall be held and when a conference is to be held, shall order the di- 
rector to arrange therefor. 

4. Thereupon the director shall call such conference at a time 
and place to be determined upon by him, shall give notice thereof to 
members of the industry, and shall preside over and conduct such confer- 
ence unless a commissioner shall be designated to so preside. 

5. The director shall make a report to the commission of the 
action taken at any such conference with his recommendation for action 
of the commission thereof. 

6. In addition, the director shall communicate or confer with as 
many members of the industry as possible who were not represented at or 
who did not participate in such conference and endeavor to procure their 
assent to, and compliance with, the action taken by the conference and 
approved by the commission. 

7. The director shall, so far as practicable, keep informed as to 
9757 



-38- 

how the action taken at the conference and approved "by the commission is 
being conformed to by the members of the industry. He shall promptly 
investigate and report directly to the commission any violation thereof, 
irrespective of whether the person violating the rules had subscribed 
thereto. The report of the director showing such violation shall be the 
basis upon which' the commission may issue its complaint. 

8. The chief counsel, the board of review, the chief examiner, 

the docket section, and the secretary to the commission shall, as promptly 
as practicable, convey to the commission all information they may now 
have of the Character covered by paragraph 1 hereof, to the end that all 
applications for a trade practice conference (or submittal) now pending 
and all such information as to matters pending before the commission may 
be referred to this division for the procedure hereinabove outlined. 

9. Xien the commission shall nave determined its action in the 
matter of the conference or submittal, the secretary shall notify the 
industry ox the ccmirision' s action, and also give the action taken the 
widest publicity. 

10. The secretary shall cause to be established and maintained in 
the docket section such records and files as may be necessary in connec- 
tion with this resolution. 

11. At the conclusion of each such conference the heads of the 
several divisions shall report to the commission the application of such 
conference to any matter in their charge together with a recommendation. (*) 



(*) Annual Report, Federal Trade Commission. Piscal year ended 
June 30, 19:56. pp'. 48-49. 



-39- 



APPENDIX 3. 



EXECUTIVE ORDER 



DELEGATION OF 'AUTHORITY TO THE FEDERAL TRADE 
COMMISSION TO APPROVE CERTAIN TRADE PRACTICE PROVISIONS 



9757 



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EXECUTIVE ORDER 



Delegation of Authority to the Federal Trade Commission 
to Approve Certain Trade Practice Provisions 



By virtue of and pursuant to the authority vested in me by 
section 2 (a) and section 2 (b) of title I of the National Indus- 
trial Recovery Act (48 Stat. 195), certain provisions of which title 
were extended until April 1, 1936, by the joint resolution of June 14, 
1935 (Public Resolution No. 2fi, 74th Cong.), I hereby delegate to the 
Federal Trade Commission all authority vested in me by said act and 
resolution to approve such trade practice provisions as are permitted by 
clause numbered 2 of the proviso of section 2 of said joint resolution 
and submitted in voluntary agreements pursuant to section 4 (a) of said 
title of said act: PROVIDED, That such approval shall not be given by 
the Federal Trade Commission unless such agreements contain labor pro- 
visions putting into effect the requirements of section 7 (a) of the 
said National Industrial Recovery Act and after such labor provisions 
have received my approval. 

Franklin D. Roosevelt. 



THE WHITE HOUSE 

September 26, 1935. (*) 



(*) Annual Report, Federal Trade Commission. Fiscal Year Ended 
June 30, 1935. p. 8, Executive Order #7192. 



9757 



•41- 



APPEND-IX C. 



LIST OF TRADE-PRACTICE CONFERENCES 



9757 



-42- 

LIST OF INDUSTRI ES GROUP S 

1. All-cotton wash goods 10 

*2. Anti-hog-cholera serum and virus 5 

3. Baby and doll-carriage Industry 13 

4. Baby Chick Industry 9 

*5. Band Instrument Manufacturers 13 

6. Bank and Commercial Stationers 14 

7. Barn Equipment Industry 8 

8. Barre Granite Industry 2 

9. Beauty Barber Supply Dealers 20 

10. Bituminous Coal Operators of S. W« (Missouri, Kansas).... 3 

11. Bituminous Coal Industry (Utah) 3 

*12. Books ( Subscription book publishers) 14 

13. Butter, eggs, cheese, poultry industries (Pacific Coast). 9 

*14. Butter Manufacturers (Southwest) 9 

15. Carbon Industry (Electrical) 8 

*16. "Castile" soaps 5 

17. Cedar Chest Industry 13 

18. Cheese Industry, Assembling Branch 9 

19. China Recess Accessories Industry 2 

20. Cleaning & Dyeing Industry (Pennsylvania & Adjoining 

Territory) 19 

21. Clothing Cotton Converters. 10 

22. Commercial Cold Storage Industry 19 

23. Common Brick Industry 2 

24. Common or Toilet Pin Industry 13 

25. Concrete Mixer and Paver Industry 8 

26. Correspondence Schools 19 

27. Cottonseed Oil Mills Industry 9 

*28. Creamery Industry 9 

29. Crushed Stone Industry 2 

30. Cut-Stone Industry 2 

31. Cut Tack, Cut Nail & Staple Industry 13 

32. Direct Selling Companies 21 

33. Dry-Cleaning & Dyeing Service (District of Columbia & Vic- 

inity) 19 

34. Edible Oils Industry 9 

35. Educational Jewelry Industry (Manufacturers of School, 

College Jewelry) 13 

36. Electrical Wholesalers. . 20 

37. Electrical Contracting Industry 15 

38. Embroidery Industry 11 

*39. Engraved Effects Printing 14 

40. Fabricators of Ornamental Iron, Bronze Wire 13 

41. Fabricators of Structural Steel 13 

42. Face-Brick Industry 2 

(*) Trade Practice Submittal 
9757 



-43- 

LIST OF INDUSTRIES (CONT'D) GROUPS 

43. Feather. and_ Down Industry -10 

44. Feldspar Industry • 2 

45. Fertilizer Industry.......... 5 

46. Field and Grass Seed Industry 9 

47. Flat Glass Industry 2 

48. Flexible Cord, Heater Cord Industry 8 

49. Floor and Wall Clay 'Tile Industry. .... . 2 

50. Fur Industry . ; ; * 12 

51. Furnace Pipe and Fittings Industry 8 

*52. Gold-mounted Knives , Manufacturers. . . 13 

**53. Gold Plated Finger Rings , Manufacturers.'.'.'. , 13 

54. Golf Ball Industry.... 13 

55. Golf, Baseball & Athletic Goods Industry 13 

56. Greeting Card Industry. * 14 

57. Grocery Industry 20 

58. Gypsum Industry. 2 

59. Heavy Sheet Glass Industry. . 2 

60. Household Furniture , Furnishing . 13 

61. Ice-Cream Industry (District of Columbia and Vicinity)... . 9 

62. Ingot Brass & Bronze- Industry. 8 

63. Insecticide & Disinfectant- Industry 5 

64. Interior Marble' Industry 2 

65. Jewelry Industry 13 

*66. Knit . Goods Manufacturers 11 

67. Knit Underwear Industry 11 

68. Knitted Outerwear Industry 11 

69. Kraft Paper Industry. ...... 6 

70. Leatherboard Industry. ..-...■ 6 

71. Lightning Rod Industry 13 

72. Lime Industry -. 2 

73. Live Poultry Industry (New York and Vicinity) ■. 9 

74. Manufactured Electrical Mica Industry 2 

75. Marking Devices Industry. 13 

76. Medical Gas Industry. 10 

*77. Mending Cotton Manufacturers 10 

78. Metal Burial Vault Industry 13 

79. Metal Lath Industry. . . , 13 

80. Milk and Ice ' Cream Can Industry 13 

81. Milk Producing' and Distributing Industry(liichigaa and 

Vicinity) 9 

82. Millwork Industry 4 

83. Molded Product Industry (Electrical) 2 

* Trade Practice Submittal 

** More of a nature of a Stipulation thai Trade Practice Submittal 

9757 



-44- 



LIST OF INDUSTRIES (CONT'D) GROUPS 

84. Mopstick Industry , 4 

85. Motion Picture Industry 18 

86. Multi-color Printers of Transparent or Translucent 

Materials. . . .-. 14 

87. Musical Merchandise Industry 13 

88. Naval Stores Industry ( Steam Solvent Class) 5 

89. Oil Industry 3 

90. Outlet Box & Conduit Fittings - 8 

*91. Package Macaroni Industry 9 

92. Paint, Varnish and Lp.cquer, and Allied Industries.. 5 

**93, Paper Industry 6 

94. Paper Bag Industry 6 

95. Paper 3oard Industries 6 

96. Paper Bottle Cax> Industry 6 

97. Petroleum & Petroleum Products 3 

98. Petroleum Industry (Virginia State) 3 

99. Plumbing and Heating Industry 15 

100. Plywood Industry 4 

101. Public Seating Industry 19 

102. Publishers of Periodicals 14 

*103. Pyroxilin Plastics Industry 5 

. 104. Rabbit and Cavy Breeders' Industry 9 

105. Range Boiler Industry 8 

*106. "Rayon," Artificial Silk 10 

107. Rebuilt Typewriter Industry 21 

108. Reinforcing Steel Fabricating & Distributing Indus- 

1 try 15 

*109. Retail Furniture Dealers, New York City 21 

110. Roll and Machine Ticket Industry 14 

111. Sanitary Napkin Industry 6 

112. Saw and Blade Service Industry 19 

113. School Supply Distributors 20 

114. Scrap Iron & Steel Industry 1 

*115. Sheffield Silver-Plated Hollow Ware. 13 

116. Shirting Fabrics Industry in 

117. Silk Weighting 10 

118. Sled Industry 13 

119. Solid Section Steel Window Industry 13 

120. Solvents Industry 5 

121. Southern Hardware Jobbers 20 

122. Southern Mixed Feed Manufacturers 9 

123. Spice Grinders and Packers. 9 

*124. Standard Music Sheet Publishers 14 

125. Steel Office Furniture 13 

126. Structural Clay Tile Industry 2 

* Trade Practice Submittal 

** More of a nature of a Stipulation than Trade Practice Submittal 



9757 



" -43- 

LIST OF INDUSTRIES (CONT'D) GROUPS 

43. Feather and Down Industry. 10 

44. Feldspar Industry 2 

45. Fertilizer Industry.-. .. .• 5 

46. Field and Grass Seed Industry 9 

47. Flat Glass Industry....,,.... — ....... 2 

48. Flexible Cord, Heater Cord Industry 8 

49. Floor and Wall Clay Tile Industry 2 

50. Fur Industry 12 

51. Furnace Pipe and Fittings Industry 8 

*52, Gold-mounted Knives, Manufacturers ........ 13 

**53. Gold Plated Finger Rings , Manufacturers. 13 

54. Golf Ball Industry 13 

55. Golf, Baseball & Athletic Goods Industry 13 

56. Greeting Card Industry 14 

57. Grocery Industry. 20 

58. Gypsum Industry 2 

59. Heavy Sheet Glass • Industry , . 2 

60. Household Furniture , Furnishing 13 

61. Ice-Cream Industry (District of . Columbia and Vicinity)... 9 

62. Ingot Brass & Bronze Industry 8 

63. Insecticide & Disinfectant Industry 5 

64. Interior Marble Industry 2 

65. Jewelry Industry. < 13 

*66. Knit Goods Manufacturers 11 

67. Knit Underwear Industry 11 

68. Knitted Outerwear Industry. 11 

69. Kraft Paper Industry* . 6 

70. Leatherboard Industry 6 

71. Lightning Rod Industry. 13 

72. Lime Industry. . . . -. »,..... 2 

73. Live Poultry Industry (New York, and Vicinity) 9 

74. Manufactured Electrical Mica Industry 2 

75. Marking Devices Industry 13 

76. Medical Gas Industry. » 10 

*77. Mending Cotton Manufacturers 10 

78. Metal Burial Vault- Industry 13 

79. Metal Lath Industry. ,-..., 13 

80. Milk and Ice Cream Can- Industry , . . 13 

81. Milk Producing and Distributing Industry(Michigaa and 

Vicinity) 9 

82. Millwork Industry 4 

83. Molded Product Industry (Electrical) 2 

* Trade Practice Submittal 

** More of a nature of a Stipulation thai Trade Practice Submittal 



-44- 



LJ_ST 0? INDUSTRIES (CONT'D) 

84. Mopstick Industry 

85. . Motion Picture Industry 

86. Multi-color Printers of Transparent or Translucent 

Materials 

87. Musical Merchandise Industry. . ■ 

88. Naval Stores Industry ( Steam Solvent Class) 

89. Oil Industry -. * 

90. Outlet Box & Conduit Fittings 

*91. Package Macaroni Industry 

92. Paint, Varnish and Lacquer, and Allied Industries.. 

**93. Paper Industry 

94. Paper Bag Industry 

95. Paper. Board Industries 

96. Paper Bottle Cax> Industry. 

97. Petroleum & Petroleum. Products 

98. Petroleum Industry (Virginia State) 

99. Plumbing and Heating Industry 

100. Plywood Industry... ...... 

101. Public Seating Industry 

102. Publishers of Periodicals 

*103. Pyroxilin Plastics Industry... 

. 104. Rabbit. 'and Cavy Breeders* Industry 

105. Range Boiler Industry... . ._ 

*1C6. "Rayon." Artificial Silk..,.,,....." 

107. Rebuilt Typewriter Industry 

108. Reinforcing Steel Fabricating & Distributing Indus- 
1 •-.,-.■ try 

*109. Retail Furniture Dealers, New York City 

110. Roll and Machine Ticket Industry. 

111. Sanitary Napkin' Industry. 

112. Saw and Blade Service Industry. - 

113. School Supply Distributors 

114. Scrap Iron &• Steel- Industry 

*115. Sheffield Silver-Plated Hollow- Ware. .'."..' 

116. Shirting Fabrics- Indus-try.'. . . . . 

117. Silk Weighting. .;.■ ■.*'. . .' 

118. Sled Industry 

119. Solid .'Section Steel- Window Industry. .... J. 

120. Solvents Industry. .-.-.. . . .-. .-. ' 

121. Southern Hardware Jobbers ■ 

122. Southern Mixed Feed -Manufacturers 

123. Spice G-rinders and Packers. . .-. . . . 

*124. Standard Music Sheet Publishers 

125. Steel Office F.irniture. ..-..-.•.■.■.. 

126. Structural Clay 'Tile Industry 



GROUPS 
4 
18 



14 
13 



3 
8 
9 
5 
6 
6 
6 
6 
3 

15 

4 

19 

14 

5 

9 

8 

10 

21 

15 
21 
14 



19 

20 

1 

13 

in 

10 
13 
13 

5 
20 

9 

9 
14 
13 

2 



* Trade Practice Submittal , ... 

** More of a'nature of a p Stimulation than Trade Practice Submittal 



9757 



-45- 
LIST OF DIDUSTRIES (COHT'D) GROUPS 

127. Trunk, Luggage and Brief Case Industry 12 

128. Uniform Manufacturers Industry 11 

129. Upholstery Textile Industry 10 

130. Veneer Fruit & Vegetable Package Industry 4 

131. Vulcanized Fibre Industry 5 

132. Wall Paper Industry 6 

133. Walnut Wood Industry 4 

134. Warm Air Furnace Industry 8 

135. Waste Paper Dealers and Packers 20 

136. Watch Case Industry, Gold Filled 13 

137. Waxed Paper Industry 6 

138. Wholesale Drug Industry 20 

139. Wood Turning Industry (Hickory Handle Branch) 4 

140. Woodworking Machinery 8 

141. Wool Stock Industry 13 

142. Woolens and Trimmings Industry 10 

143. Woven Furniture Industry 13 



-46- 



■APP-ENDIX D, 

LIST, 
OF .... 



TRADE. FRACTICE CONFERENCE RULES ADOPTED OR ACCEPTED 

..'-.'. I •'■"". ! ' ' BY .THE. 

. ., ' FEDERAL TRADE COMMISSION 



9757 



-47- 



List of Trade F racti ce Con ferenc e Rule s Ad op ted or Accepted "by 

the Federal Trade Commi ssion 



1. Accommodations, Misrepresentation of 

2. Accounts, Collection o-f, simulating legal documents 

3. Advertising (printed word, pictorial representation, radio) or other . 

statement, "blind", deceptive, fraudulent, inaccurate, mis- 
leading, untrue, deceiving 

4. Advertising Devices, Standard, Loaning of .-.,•• 

5. Advertising, Proper designations 

6. Advertising, Use of superlatives or other exaggerated descriptions 

7. Advertisers, Responsibility to consumers for sales persons 

8. Advertisers, Responsibility to consumers for advertising material 

9. Advertisers, Responsibility to consumers for alterations or change . 

of printed forms or terms 

10. Advertisers, Responsibility to consumers for money advanced to 

sales persons 

11. Affiliations, Relationship, Misrepresentation of 

12. Agents, Exclusive, Disregarding right of said 

13. Agreements, Violation of by buyer or seller 

14. Arbitration,, -as means of settlement of dispute 

15. Bid, One-, Policy 

16. Bids, Competitor's, Misleading or deceiving any bidder relative to 

17. Bids, Competitor's, Surreptitiously obtaining information 

18. Bids, Competitor's, Revealing' to any bidder 

19. Bids, fake, fictitious, "blind" 

20. Bids, Inducing contractee to apply product identification unknown 

to 'competitiors. 



9757 



-43- 



21. Bids, Intentionally leaving out materials from specifications 

22. Bids, Lowering one's, without changes in specifications 

23. Bids, Adoption of ^ules for calling for 

24. Bids, Sub-, Submitting of, after the general contract has been 

awarded 

25. 3ids, Revision of after opening, Handling same as original bid 

26. "Bid-Shopping" Practices 

27. Bidding on Contracts, Irregular 

2 8. Bidding, Adoption of a General Policy in re to 

29. Bidding privileges of Buyer, Equalization with seller's privilege of 

offerings 

30. Bidding or Quoting, on projects unable to carry out' 

31. Bidding, Under-, by offering inferior products 

32. Bidders, submission of additional information or interpretation in 

re to bids'' to all bidders simultaneously 

33. Bidder, collusion with architect, builder, owner, retai-ler, con- 

tractor 

34. Bills of lading, or other documents of title, Use of fictitious 

35. Billings split 

36. Benefits, earnings, actual or probable; Overstatement or mis- 

representation of 

37. Branding, marketing, labeling; Approved method of 

38. Bribery, Commercial 

39. Buying or selling power, Abuse of 

40. Buying or selling products according to grade and rules relating to 

exchanges 

41. Cars, pooled or combination 

42. Charges, additional, collection upon delivery 

43. Certification of products by other than manufacturers 

44. Certification of products, False 



9757 



-49- 



45. Claims, false, Submission to a supplier 

46. Coercing buyers, sellers, dealers, jobbers, etc. 

47. Coercing purchase of product other than requested by customer 

48. Commission and compensation, C-ranting of to others than regular 

dealer or salesman ■ of Industry 

49. Commissions lor exclusive agents, Practice of disregarding the 

rights of said 

50. Commissions, extra or bonuses, unconditionally paid 

51. Competitors, Defamation of 

52. Competitors, Espionage of 

53. Competitor's goods (weight, substnnce, strength, grade, quality, 

services) , E-.lse disparagement of 

54. Competitor's, Wilful enticement of employees, with injurious effect 

55. Competitor's equipment, Unauthorized use of 

55. Competitoi's identified 'container, Retention or use of 

57. Competitor's labor troubles, Inciting, aiding, abetting 

58. Competitor's personnel under contract, Employing of, solicitation 

z£ services of, without informing competitor 

59. Competitors plates, cuts, etc. Use of 
t.O. Competitor's price, Misrepresentation of 

61, Competitor's product, Appropriation and use of, Substitution of 

fc2„ Competitor's right to choose suppliers, Interference with 

l 'i. Competitor's Securing information from, by false or unlawful means 

£4, Competitor' s, -Simulation of style of store front and signs 

65. Concealing of available supplies and actual demands 

66. Consignment, Shipment on, Offering of, Abuse or misuse of 

67. Consumers : protection, Recommendation of 

66. Containers, Eurnisning of, to influence shipment 



9757 



-50- 

69. Containers, Standard, Packing in 

70. Containers', Equipment , Competitor' 1 s , Use without owners' consent 

71. Contract: antedating, predating, 'postdating 

72. Contract, Blanket 

73... .Contracts, as business obligations to be performed in letter and 
spirit 

74. Contract, False, 

75. Contract, Confirmed order, Inducing breach of 

76. Contract, Confirmed order, Interference with 

77. . Contracts or. . Agreements. , "Money Back" guarantees 

78. Contracts signed, Neglecting to 'return 

79. Contract, Standard form, Adoption' of 

80. Contract obligations of buyer and seller, Unequal 

81. Contract, omitting specifications 

82. Contract, sales and proposal, Uniform 

'83. Contracts at specified prices, for unspecified quantity 

84. Contracts or Orders , ..Repudiation of, Cancellation, except for 

legal cause 

85. Coupon books, Redeeming of at face value, without any discount. 

86. Cost finding and estimating methods , accurate, standard, uniform 
-. proper grouping, Installing of _ ... 

87. Cost of reconditioning, distribution and overhead expenses, 

Ignoring of 

88. Cost of transportation, Ignoring of 

89. Credit allowance, Secret, for promotion 

90. Credit accounts, past due, delinquent and slow, Distributing 

information in. regard, to ,. .... . .. 

91. Credit, Extension. of to borrower or lessee of equipment 

92. Credit, Extension of to dealers engaging in unfair methods of 

competition 



9757 



-51- 

93. Deals, Free 

94. Dci'lni t j ons of Industry Products, Trade names 

95. Definitions, methods of designation of Manufacturer, Dealer, 

Broker, Jobber, Distributor, Producer, Merchant 

96. Definitions of private and Government institutions, professional 

positions 

97. Delivery delays, unwarranted, entitling to refund 

98. Deliveries, Bulk at plant 

99. Delivery of products at wholesale plants into purchasers' wagons or 

trucks 

TOO. Deposit on samples or sales outfits, Prompt return of 

101. Discounts, Cash, Violation of agreement by buyer and seller 

102. Discounts, Cash, to purchasers not entitled thereto 

103. Discounts, Favoritism in granting 

104. Discounts, on less than quantity order or shipment 

105. Discounts or terms of sale, allowances; Discrimination of 

106. Discrimination against manufacturer 

107. Disputes, Fractice of handling in a fair and reasonable manner. 

108. Dumping in remote markets 

109. Employees, Housing or boarding of on manufacturer's premises 

110. Employees, Enticement of 

111. Employment of personnel, for secret influencing of sale 

112. Employment, Promise or guarantee misleading 

113. Employment, Service, Representation of in a misleading manner 

114. Equipment, Buying or renting for more than actual value 

115. Equipment, Construction of, Painting, Improvement to existing 

facilities, for Retailers. 



9757 



-52- 



116. Equipment, Identification of owner or lessor 

117. Equipment, Storage, loaning, leasing, furnishing of at full cost 

118. Equipment, purchasing or renting from "buyer 

119. Exchange membership classification, Fair and equitable rules for 

120. Facilities, offices, buildings, trade status, character of 

business, Misrepresentation of 

121. Facility or service of the Industry, Representation by false means 

or devices. 

122. Failure to accept delivery of orders 

123. Failure of dealers to give credit for overweight 

124. Failure to deduct transportation for product purchased on delivered 

basis 

125. Failure to deliver merchandise at appointed time 

126. Failure to fill orders or perform contracts 

127. Failure to pay full price for products purchased 

128. Failure to pay published packing charges and freight 

129. Falsifying books or accounts when operating under receivership 

130. Form of business, Misrepresentation 

131. Freight rates, Absorption by seller 

132. Games of chance, Prohibition of using, in connection with sales 

133. Gifts, gratuities to purchasers, sellers, Enterteinment , with 

the effect to influence a sale 

134. Grade, Practice cf buying and selling by 

135. Grading, Variations, Seasonable 

136. Guarantee, Compliance with government laws 

137. Guarantee of performance, material, workmanship; Policy in re to 

Definite provision for replacement of defective parts 



9757 



-53- 



138. Guarantees, Warranties, Product: false, misleading, indefinite 

139. Guarantee, Uniform form of 

140. Hazards to life, as a result of imperfect branding or marking. 

141. Health authorities, Cooperation with endorsed 

142. Identification symbols, standard grade, plant; Lack of proper 

143. Identification of packer, distributor, manufacturer 

144. Identification of products: false, inaccurate 

145. Identification of products, Froper 

146. Identification symbols, Concealment, or removal of 

147. Industry defamation 

148. Industry members, Exclusion of, or discrimination 

149. Invoicing false, wholly or in part 

150. Invoicing, proper, detailed 

151. Invoices, sending after merchandise is shipped 

152. Invoices, sending before merchandise is shipped 

153. Improvements on Resellers Premises 

154. Insurance protection of goods while in care or custody 

155. Leasing, Loaning, or furnishing of equipment to dealers 

156. Leasing of property to dealers at rental based on fair value of 

property. 

157. Labeling, identifying, marking, branding, stamping according to 

accepted standards of industry 



158. Marking, branding, grading, labeling of products: False, deceptive 

( Mi sgradi ng , U i sbranding) 

159. Material, Use of inferior, Z::i:nii.f? to bring product in disrepute 



9757 



-54- 



160 



Numbers denoting styles of goods, Deceptive practice in re to 



161. Offers, limited, as to time or otherwise, special, free, 

Misleading, deceptive 

162. Offers, omitting terms of sale 

163. Opportunities, demands, in any vocation or field; Overstatement 

of, Misrepresentation of 

164. Orders, Proper handling of 

165. Overbilling of shipments, Wilfull 

166. Packing, grading; False, deceptive, ' Misrepresentation 

167. Packing, grading; Proper 

168. Painting over signs of another company 

169. Patent or Trade Mark infringement, Dealing directly with original 

infringers only 

170. Payment, Frompt 

171. Piracy of design, style or pattern 

172. Price advance or decline, Guarantee against 

173. Price changes, Publication of 

174. Frice differentials, Extension to parties not entitled thereto 

175. ^rice differentials, Reasonable and uniform to all purchasers of 

like quantity 

176. Price discrimination when the effect is to create monopoly or 

lessen competition 

177. Prices, individual freedom in establishing 

178. Prices, open 

179. Prices, conspicuous posting of by distributors, jobbers, wholesalers, 

retailers, at point of delivery 

180. Prices posted, Deviation from 



9757 



-:;5- 



181. Frice lists, Independent publication and circularization of ,-■ 

182. Frices, special quantity policy in re to 

183. Tricing as a matter of individual judgment 

184. Frice-, paying less after receiving shipment 

185. Frices, terms of sale, published; adherence to 

186. Frice reductions, in case of delayed deliveries 

187. Frices, Quotations: Marked up, fictitious, inflated, deflated, 

misleading, deceptive 

188. Fremiums, prizes, bonuses, gifts , special discounts, lotteries 

in connection \ith sales. 

189. Product grades established by government, Failure to observe 

190. Froduct description, froper 

191. Froduct, Misrepresentation, Misdescription; Sale of 

192. Products, unbranded, inaccurately described, unstamped, ungraded; 

Sale or shipment of 

193. Promises inconsistent with advertisements 

194. Quantity, quality, material, substance, size, weight, measure 

origin, style, strength, capacity. Misrepresentation or mis- 
statement, misdescription of 

195. Quotations subject to discount or additional charges 

196. Hates, cnarges, terms and conditions of sale, prices (notices of 

advance or decline) ; Open statement of 

197. Rebates, refunds, other concessions; secret payment or discrimin- 

atory allowance of 

198. "Rebuilt" or "Overhauled" machines, Performance of 

190. Receipt, false, incomplete, wholly or in part / 

200. Reductions offered from fictitious prices 

201. Regulations for territories with no governmental regulations 



9757 



c. 



o, 



202. Rental to buyers, Payment of, fdf special privileges 

203. Rentals to buyers, Equipment and Advertising 

204. Restrictions of bidding, offering, sales, membership, etc. 

205. Retroactive settlements and adjustments 

206. Returning merchandise, Unwarranted 

207. Safety standards 

08. Salesmanship, dishonest, inducing or attempting to induce 

09. Sales or offers, Deceptive 

210. Sales, contingent upon certain conditions 

211. Sales, Inducing, by other products 

212. Sales, without mutuality 

213. Sales without profit 

214. Sales without specifications 

215. Selling of altered or repaired goods without disclosing fact 

215. Selling' goods or services belo'" cost for purpose of injuring 
competitors 

217. Selling of -roods in violation of F.T.C. rules 

218. Selling of less than carload at full carload or group lot prices 

219. Selling methods, Customary departure from 

220. Selling prices, Misleading, uneconomic 

221. Selling or offering for sale at price reduced from marked-up or 

fictitious 

222. Selling of prison made goods, unless purchaser informed 

223. Selling of products on basis of quality and intrinsic value 

224. Selling products or services by false means or devices 

225. Selling products unfit for human consumption 

226. Selling of products from wagons or trucks to other motor vehicles 

227. Selling or offering for sale at reduced prices, of nationally 

advertised articles 

9757 



s 



-57- 

238. Selling of regular lines as "close outs" 

229. Selling, or advertising for sale at greatly reduced prices with 

inadequate supply 

230. Selling under inaccurate or untruthful claims 

231. Samples free, or made especially to specification of prospective 

customer 

232. Samples or Specifications, Submitting inadequate 

233. Sample deposit, Refund of 

234. Securing of positions for prospective customers, Misrepresentation of 

235. Settlements costly, Cooperation in preventing of 

236. Services or privileges, Special secret extension of 

237. Service alleged to be rendered; Misrepresentation of character, 

condition and scope 

238. Services or privileges to customers, Special 

239. Services discriminatory, Influencing of 

240. Services, Free, Granting of to customers 

241. Services, Inaccurate, Unwarranted claim of 

242. Services, Refusal of fulfillment except for additional charge 
?43. Second-hand materials, Selling as new 

244. Shipment of products to any but authorized distributors 

245. Shipping or delivering of products not conforming to samples 

submitted or representation made 

246. Shipping practices and regulations 

247. Shipment, transit, without order from customer 

248. Snipping drop- shipment business from wholesaler 

249. Subsidizing or financing buyers, salesmen, professional or 

prominent users of products 



9757 



-58- 



250. Substitution or use of materials inferior in quality than speci- 

fied, contracted for, or required "by Government Laws. 

251. Substitution of another product than ordered 

252. Substitution of materials, methods of manufacture and erection 

non-conforming with Governmental Laws 

253. Substitution of product, brand, grade-designated for appropriate 

equipment 

254. Substitution of products of lower quality through unlabeled goods 

255. Stored products, Delivery of without warehouse receipt 

256. Standing, responsibility, character of establishment, Misrepre- 

sentation of 

257. Standards of Industry, Established; Deviation from 

258. Standard methods of classifying, grading, measuring 

259. Standards of quality, quantity, grade, size, penormance, weight, 

construction, test, packing 

260. Standards, Simulation of 

261. Standardization and Simplification, Adoption of .. 

262. Statistics, Compilation and Distribution in re to production, dis- 

tribution and marketing 

263. Stock defective, Replacement of 

264. Testimonials in advertising or sale; False, misleading, exaggerated 

265. Testing, test reporting, False 

265. Terms of Sale, Definite, Fart of price lists 

267. Time guarantee, Definite restriction of 

268. Time limit offers, Misleading 

269. Title, statement, picture; Misuse of, Misrepresentation of 

270. Threats of suits unjustified, for patent or trade mark infringement 

271. Tolerances, allowances, greater than agreed 



9757 



459-. 

273. Trade abuses and wasteful practices 

273. Trade-in allowances, Excessive 

274. Trade ethics. Recommendation of 

275. Trade-marks, trade-name, mark of identification, etc.; Limitation 

of, Misuse of, Simulation of 

276. Trade-mark, Froper jlace of recommended 

277. Trade-Practices Committee, Creation of 

278. Trade-practice approved rules, Endorsement and observance of 

279. Trade-practice rules, Violation or infraction of 

280. Trade-practices, Unfair, Affecting public interest 

281. Trade-practices, Unfair; Aiding or abetting the use of 

282. Trade-practices, Unfair, Investigation or inspection of 

283. Trial period 

284. Transportation, trucking charges, Excessive allowance for 

285. Transportation, trucking charges, Failure to collect by seller 

286. Transportation, trucking charges, Uniform 

287. Trucking free, beyond city limits; Granting of 

288. Warehousing Free 

289. Warehouse receipts, Issuance of deceptive, false, misleading, 

fraudulent 

290. Warehouse receipts, Issuance of without receiving products 

291. Words or terms in describing or representing products; False, 

improper use of 



3757 



-fiO- 



APFEEDIX E. 



LIST OP INDUSTRY GROUPS 



9757 



-61- 

List of Industry Grouas - Classification Sa:ne as for IIM Codes. 

1. petals - Ferrous and Fon-Ferrous 

2. ".'on- "etallic Minerals 

3. Fuel 

4. Forest Products 

5. Chemicals, Drugs, Faints 

6. Paper 

7. Rubber 

8. Equipment and Machinery 

9. Food 

10. Textiles - Fabrics 

11. Textiles - Apparel 

12. Leather and Furs 

13. Fabricating 

14. Grannie Arts 

15. Construction 

16. Transportation and Con nunication 

17. Finance 

18. Fecreation 

19. Service Trades 

20. Distributing Trades: Wholesale 

21. Distributing Trades: Petail 



9757 



«62r 



List of Industries by Groups . 



Group 1. Metals - Ferrous and ITon-Ferrous 

114. Scrap Iron & Steel Industry 

Group 2. ITon-iletallic Minerals 

8. Barr Granite Industry 

19. China Recess Accessories Industry 

23. Common Brick Industry 

29. Crushed Stone Industry 

30. Cut-Stone Industry 
42. Face-Brick Industry 

44. Feldspar Industry 
47. Flat Glass Industry 
49. Floor and Wall Clay Tile Industry 

58. Gypsum Industry 

59. Heavy Sheet Glass Industry 
64. Interior Marble Industry 
72. Lime Industry 
74. Manufactured Electrical Mica Industry 

83. Molded Products Industry (Electrical) 
126. Structural Clay Tile Industry 

Group 3. Fuel 

10. Bituminous Coal Operators of S. W. (Missouri, Kansas) 

11. Bituminous Coal Industry (Utah) 
89. Oil Industry 

97. Petroleum and petroleum Products 

98. Petroleum Industry (Virginia State) 

Group 4. Forest Products 

82. Millwork Industry 

84. J ppstick Industry 
100. Plywood Industry 

130. Veneer Fruit & Vegetable Package Industry 
133. Walnut Wood Industry 

139. Wood Turning Industry (Hickory Handle Branch) 

Group 5. Chemicals. Drugs. Paints. 

1. Anti-hog- cholera serum and virus 

16. "Castile" Soaps 

45. Fertilizer Industry 

63. Insecticide & Disinfectant Industry 

88, Haval Stores Industry (Steam Solvent Class) 

92, Paint, Varnish and Lacquer, and Allied Industries 

103. Pyroxilin Plastics Industry 

120. Solvents Industry 

131. Vulcanized Fibre Industry 



9757 



~<63~ 

Group 6. Pa-n or 

69. Fraft Paper Industry 

70. Leatherboard Industry 

93. Paper Industry 

94. Paper Bag Industry 

95. paper Board Industries 

96. Paper Bottle Cap Industry 
111. Sanitary ITapkin Industry 
132. Wall Paper Industry 
137. Waxed Paper Industry 

C-roup 7. Rubber - Hone 

Group S. Equipment and Machinery 

7. Barn Equipnent Industry 

15. Carbon Industry (Electrical) 

25. Concrete Mixer and Paver Industry 

48. Flexible Cord, Heater Cord Industry (Electrical) 

51. Furnace Pipe and Fittings Industry 

62. Ingot Brass and Bronze Industry 

90. Outlet Box and Conduit Fittings 

105. Range Boiler Industry 
134, Warn Air Furnace Industry 
140. Woodworking Machinery Industry 

C-roup 9. Food 

4, Baby Chick Industry 

13. Butter, ergs, cheese, poultry industries (Pacific Coast) 

14. Butter Manufacturers ( Soutlvest) 
18. Cheese Industry (Assembling Branch) 
27. Cottonseed Oil i'ills Industry 

2G. Creamery Industry 

34. Edible Oils Industry 

46. Field and Grass Seed Industry 

61, Ice Cream Industry (District of Columbia & Vicinity) 

73. Live Poultry Industry (Hew York &. Vicinity) 

81. Milk producing & Distributing Industry (Michigan & Vicinity) 

91. package Macaroni Industry 

104. Babbit and Caby Breeders' Industry 

122. Southern Mixed Feed Manufacturers 

123, Spice Grinders and Packers 

Group 10. Textiles - Fabrics 

2. All-cotton Wash Goods 

21, Clothing Cotton Converters 

43, Feather and Down Industry 

76. Medical Gas Industry 

77. Mending Cotton Mar ifact irers 

106. "Rayon" Artificial SIV 
116. Shirting Fabrics Indus 1 17/ 



9757 



-64-. 



Group 10. Textiles - Fabrics (Cont'd ') 

117. Silk Weighting 
129. Upholstery Textile Industry 

142. Woolens and Trimmings Industry 

Group 11. Textiles - Apparel 

38. Embroidery Industry 

66. Knit Goods Manufacturers 

67. Knit Underwear Industry 

68. Knitted Outerwear Industry 
128. Uniform Manufacturers Industry 

Group 12. Leather pnd Furs 

50 . Fur Indu s t ry 

127. Trunk, Luggage and Brief Case Industry 

Group 13. Fabricating 

3. Baby and Doll-Carriage Industry 

5. Band Instrument Manufacturers 

17. Cedar Chest Industry 

24, Common or Toilet Pin Industry 

31. Cut Tack, Cut Nail & Staple Industry 

35. Educational Jewelry Industry (Manufacturers of School, 

College Jewelry) 

40. Fabricators of Ornamental Iron, Bronze Wire 

41. Fabricators of Structural Steel 

52. Gold-mounted Knives, Manufacturers 

53. Gold Plated Finger Rings, Manufacturers 

54. Golf Ball Industry 

55. Golf, Baseball & Athletic Goods Industry 
60. Household Furniture, Furnishing 

65. Jewelry Industry 

71. Lightning Rod Industry 

75. Marking Devices Industry 

78. Metal Burial Vault Industry 

79. Metal Lath Industry 

80. Milk and Ice Cream Can Industry 
37. Musical Merchandise Industry 

115. Sheffield Silver-plated Hollow Ware 

118. Sled Industry 

119. Solid Section Steel Window Industry, 
125. Steel Office Furniture 

136. Watch Case Industry, Gold Filled 

141. Wool Stock Industry 

143. Woven Furniture Industry 



9757 



Group 14. Graphic Arts 

6k Lank and Commercial Sta.tioners 

12. Books (Subscription Book Publishers) 

39. Engraved Effects printing 

56. Greeting Card Industry 

86. Multi-color Printers of Transparent or Translucent Materials 

102. publishers of Periodicals 

110. Roll and Machine Ticket Industry 

124. Standard Music Sheet Publishers 

Group 15. Construction 

37. Electrical Contracting Industry 
S9. Plumbing and Heating Industry 

108. Reinforcing Steel Fabricating & Distributing Industry 

Group 16. Transportation and Communication - Hone 

Group 17. Finance - Hone 

Group 18. Recreation 

85. Motion Picture Industry 

Group 19. Service Trades 

20. Cleaning & Dyeing Industry (Pennsylvania & Adjoining Territory) 

22. Commercial Cold Storage Industry 

26. Correspondence Schools 

33. Dry-Cleaning & Dyeing Service (District of Columbia & Vicinity) 

101. Public Seating Industry 

112. Sar; and Blade Service Industry 

Group 20. Distributing Trades: Wholesale 

9. Beauty Barber Supply Dealers 

36. Electrical Wholesalers 

57. Grocery Industry 

113. School Supply Distributors 
121. Southern Hardware Jobbers 

135. Waste Paper Dealers and Packers 
138. Wholesale Drug Industry 

Group 21. Distirbuting; Trades: Retail 

32. Direct Selling Companies 
107. Rebuilt Typewriter Industry 

109. Retail Furniture Dealers, lie'-' York City 



9757# 



OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 
THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, established the Division of Review of he 
National Recovery Administration. The pertinent part of the Executive Order reads thus: 

The Division of Review shall assemble, analyze, and report upon the statistical 
information and records of experience of the operations of the various trades and 
industries heretofore subject to codes of fair competition, shall study the ef- 
fects of such codes upon trade, industrial and labor conditions in general, and 
ot.ier related matters, sha'l make available for the protection and promotion of 
the public interest an adequate review of the effects of the Administration of 
Title I of the National Ino strial Recovery Act, and ti j principles and policies 
put into effect thereunder, and shall otherwise aid the "resident in carrying out 
nis functions under the said Title. 

The study sections set up in the Division of Review covered these areas: industry 
studies, foreign trade studies, labor studies, trade practice studies, statistical studies, 
legal studies, administration studies, miscellaneous studies, and the writing of code his- 
tories. The materials which were produced by these secti.ns are indicated below. 

Except for the Code Histories, all items mentioned below are scheduled to be in mimeo- 
graphed form by April 1, 1936. 

THE CODE HISTORIES 

The Code Histories are documented accounts of the formation and administration of the 
codes. They contain the definition of the industry and the principal products thereof; the 
classes of members in the industry; the history of cede formation including an acc> unt of the 
sp jns ring organizations, the conferences, negotiations and hearings which were aeld, and 
the activities in connection with obtaining approval of the code; the history of the ad- 
ministration of the code, covering the organization and operation of the code authority, 
the difficulties encountered in administration, the extent of compliance or non-compliance, 
and the general success or lack of success of the code; and an analysis of the operation of 
code provisions dealing with wages, hours, trade practices, and other provisions. These 
and other matters are canvassed not only in terms of the materials to be found in the files, 
but also in terms of the experiences of the deputies and others concerned with code formation 
and administration. 

The Code Histories, (including histories of certain NRA units or agencies) are not 
mimeographed. They are to be turned over to the Department of Commerce in typewritten form. 
All told, approximately eight hundred and fifty (850) histories will be completed. This 
number includes all of the approved codes and seme of the unapproved codes. (In Work Mate - 
rials No 18 . Contents of Code Histories, will be found the outline which governed the 
preparation of Code Histories.) 

(In the case of all approved codes and also in the case of some codes not carried to 
final approval, there are in NRA files further materials on industries. Particularly worthy 
of mention are the Volumes I, II and III which c nstitute the material officially submitted 
to the President in support of the recommendation for approval of each code. These volumes 
9675—1 . 



- il - 

set forth the origination of the code, the sponsoring group, the evidence advanced to sup- 
port the proposal, the report of the Division of Research and Planning on the industry, the 
recommendations of the various Advisory Boards, certain types of official correspondence, 
the transcript of the formal hearing, and other pertinent matter. There is also much offi- 
cial information relating to amendments, interpretations, exemptions, and other rulings. The 
materials mentioned in this paragraph were of course not a part of the work of the Division 
of Review. ) 

TKE "ORK MATERIALS SERIES 

In the work of the Division of Review a considerable number of studies and compilations 
of data (other than those noted below in the Evidence Studies Series and the Statistical 
Materials Series) have been made. These are listed below, grouped according to the char- 
acter of the material. (In gork M aterials JJo_ U, Te ntative O utlines and Summ aries of 
S tudi es iji Process , these materials are fully described). 

Industry Stu dies 

Automobile Industry, An Economic Survey of 

Bituminous Coal Industry under Free Competition and Code Regulation, Economic Survey of 

Construction Industry and NRA Construction Codes, the 

Electrical Manufacturing Industry, The 

Fertilizer Industry, The 

Fishery Industry and the Fishery Codes 

Fishermen and Fishing Craft, Earnings of 

Foreign Trade under the National Industrial Recovery Act 

Part A - Competitive Position of the United States in International Trade 1927-29 through 
1934. 

Part B - Section 3 (e) of NIRA and its administration. 

Part C - Imports and Importing under NRA Codes. 

Part D - Exports and Exporting under NRA Codes. 
Forest Products Industries, Foreign Trade Study of the 
Iron and Steel Industry , The 
Knitting Industries, The 
Leather and Shoe Industries, The 

Lumber and Timber Products Industry, Economic Problems of the 
Men's Clothing Industry, The 
Millinery Industry, The 
Motion Picture Industry, The 

Migration of Industry, The: The Shift of Twenty-Five Needle Trades From New York State, 
1926 to 1934 

National Income, A study of. 
Paper Industry, The 

Froduction, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans- 
portation, January 1923, to date 
Retail Trades Study, The 
Rubber Industry Study, The 
Statistical Background of NRA 

Textile Industry in the United Kingdom, France, Germany, Italy, and Japan 
Textile Yarns and Fabrics 
Tobacco Industry, The 
Wholesale Trades Study, The 
9675. 



Women's Apparel Industry, Some Aspects of the 

Tra^e Practice Studies 

Commodities, Information Concerning: A Study of NRA and Related Experiences in Control 
Distribution, Manufacturers' Control of: A Study of Trade Practice Provisions in Selected 

NRA Codes 
Design Piracy: The Problem and Its Treatment Under NRA Codes 
Electrical Mfg. Industry: Price Filing Study 
Fertilizer Industry: Price Filing Study 

Geographical Price Relations Under Codes of Fair Competition, Control of 
Minimum Price Regulation Under Codes of Fair Competition 
Multiple Basing Point System in the Lime Industry: Operation of the 
Price Control in the Coffee Industry 
Price Filing Under NRA Codes 

Production Control Under NRA Codes, Some Aspects of. 
Resale Price Maintenance Legislation in the United States 

Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. 
Trade Practice Rules of The Federal Trade Commission (1914-1936): A classification for 

comparison with Trade Practice Provisions of NRA Codes. 

Labor Studies 

Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-1935 

Hours and Wages in American Industry 

Labor Program Under the National Industrial Recovery Act, The 

Part A. Introduction 

Part B. Control of Hours and Reemployment 

Part C. Control of Wages 

Part D. Control of Other Conditions of Employment 

Part E. Section 7(a) of the Recovery Act 
PRA Census of Employment, June, October, 1933 
Puerto Rico Needlework, Homeworkers Survey 

Admi nistrativ e S tudie s 

Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con- 
ditional Orders of Approval 

Administrative Interpretations of NRA Codes 

Administrative Law and Procedure under the NIRA 

Agreements Under Sections 4(a) and 7(b) of the NIRA 

Approved Codes in Industry Groups, Classification of 

Basic Code, the — (Administrative Order X-61) 

Code Authorities and Their Part in the Administration of the NIRA 
Part A. Introduction 

Part B. Nature, Composition and Organization of Code Authorities 
Part C. Activities of the Code Authorities 
Part D. Code Authority Finances 
Part C. Summary and Evaluation 

9675. 



- iv - 

Code Compliance Activities of the NRA 

Code Making Program of the NRA in the Territories, The 

Code Provi ions and Related Subjects, Policy Statements Concerning 

Content of NIRA Administrative Legislation 

Part A. Executive and Administrative Orders 

Part B. Labor Provisions in the Codes 

Part C. Trade Practice Provisions in the Codes 

Part D. Administrative Provisions in the Codes 

Part E. Agreements under Sections 4(a) and 7(b) 

Part F. A Type Case: The Cotton Textile Code 
Labels Under NRA, A Study of 

Model Code and Model Provisions for Codes, Development of 
National Recovery Administration, The: A Review and Evaluation of its Organization and 

Activities 
NRA Insignia 

President's Reemployment Agreement, The 

President's Reemployment Agreement, Substitutions in Connection with the 
Prison Labor Problem under NRA and the Prison Compact, The 
Problems of Administration in the Overlapping of Code Definitions of Industries and Trades, 

Multiple Code Coverage, Classifying Individual Members of Industries and Trades 
Relationship >f NRA to Government Contracts and Contracts Involving the Use of Government 

Funds 
Relationship of NRA with other Federal Agencies 
Relationship of NRA with States and Muncipalities 
Sheltered Workshops Under NRA 
Uncodified Industries: A Study of Factors Limiting the Code Making Program 

Legal Studies 

Anti-Trust Laws and Unfair Competiti n 

Collective Bargaining Agreements, the Right of Individual Employees to Enforce Provisions of 

ommerce Clause, Possible Federal Regulation of the Employer-Emplo yee Relationship Under the 

Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial 
Regulatory Legislation 

Enforcement, Extra-Judicial Methods of 

Federal Regulation through the Joint Employment of the Power of Taxation and the Spending 
Power 

Government Contract Provisions as a ?<5eans of Establishing Proper Econ mic Standards, Legal 
Memorandum on Possibility of 

Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com- 
merce Clause, Cases on 

Legislative Possibilities of the State Constitutions 

Post Office and Post Read Power — Can it be Used as a Means of Federal Industrial Regula- 
tion? 

State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis 

Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in 

irade Practices and the Anti-Trust Laws 

Treaty Making Power of the United States 

War Power, Can it be Used as a Means of Federal Regulation of Child Labor? 

9675. 



THE EV IDEN CE STUDIES SERIES 

The Evidence Studies were originally undertaken to gather material for pending court 
cases. After the Schechter decision the project was continued in order to assemble data for 
use in connection with the studies of the Division of Review. The data are particularly 
-oncerned with the nature, size and operations of the industry, and with the relation of the 
industry to interstate commerce. The industries covered by the Evidence Studies account for 
more than one-half of the total number of workers under codes. The list of these studies 
follows: 



Automobile Manufacturing Industry 

Automotive Parts and Equipment Industry 

Baking Industry 

Boot and Shoe Manufacturing Industry 

Bottled Soft Drink Industry 

Builders' Supplies Industry 

Canning Industry 

Chemical Manufacturing Industry 

Cigar Manufacturing Industry 

Coat and Suit Industry 

Construction Industry 

Cotton Garment Industry 

Dress Manufacturing Industry 

Electrical Contracting Industry 

Electrical Manufacturing Industry 

Fabricated Metal Products Mfg. Industry and 

Metil Finishing and Metal Coating Industry 

Fishery Industry 

Furniture Man jfacturing Industry 

General Contractors Industry 

General Contractors Industry 

Graphic Arts Industry 

Graphic Arts Industry 

Gray Iron Foundry Industry 

Hosiery Industry 

Infant's and Children's Wear Industry 

Iron and Steel Industry 



Leather Industry 

Lumber and Timber Products Industry 
Mason Contractors Industry- 
Men's Clothing Industry 
Motion Picture Industry 
Motor Vehicle Retailing Trade 
Needlework Industry of Puerto Rico 
Painting and Paperhanging Industry 
Photo Engraving Industry 
Plumbing Contracting Industry 
Retail Lumber Industry 
Retail Trade Industry 

Retail Tire and Eattery Trade Industry 
Rubber Manufacturing Industry 
Rubber Tire Manufacturing Industry 
Shipbuilding Industry 
Silk Textile Industry 
Structural Clay Products Industry 
Throwing Industry 
Trucking Industr., 
Waste Materials Industry 
Wholesale and Retail Food Industry 
Waste Materials Industry 
Wholesale and Retail Food Industry 
Wholesale Fresh Fruit and Vegetable Indus- 
try 
Wool Textile Industry 



THE STATISTICAL MATERIALS SERIES 



This series is supplementary to the Evidence Studies Series. The reports include data 
on establishments, firms, employment, payrolls, wages, hours, production capacities, ship- 
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports. 
They also include notes on the principal qualifications that should be observed in using the 
data, the technical methods employed, and the applicability of the material to the study of 
the industries concerned. The following numbers appear in the series: 
9675. 



- Vi - 



Asphalt Shingle and Roofing Industry 

Business Furniture 

Candy Manufacturing Industry 

Carpet and Rug Industry 

Cement Industry 

Cleaning and Dyeing Trade 

Coffee Industry 

Copper and Brass Mill Products Industry 

Cotton Textile Industry 

Electrical Manufacturing Industry 

9675. 



Fertilizer Industry 

Funeral Supply Industry 

Glass Container Industry 

Ice Manufacturing Industry 

Knitted Outerwear Industry 

Paint, Varnish, and Lacquer, Mfg. Industry 

Plumbing Fixtures Industry 

Rayon and Synthetic Yarn Producing Industry 

Salt Producing Industry