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BOSTON PUBLIC LIBRARY

3 9999 06317 387 4

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

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 O1" 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

APPSTTDICLS

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

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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.
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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. History and Purpose of Trade-Practice 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

Creamer1'' 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) .

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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 clearlT" 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 .

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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. -'■"- • '-■ - :.- ~:~ice 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

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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.

,T4. 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

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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. IvTor 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

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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.

"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

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

"II. Procedure 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

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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

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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 manufacturers1
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 ortmisleading 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 Sam9
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 unfaire

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 manufacturer.

"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 one1 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 job1, 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

-40-

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

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APPEND-IX C.

LIST OF TRADE-PRACTICE CONFERENCES

9757

-42-

LIST OF INDUSTRIES GROUPS

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
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-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

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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

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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
21
14

10
13
13

5
20

9
14
13

* Trade Practice Submittal , ...

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

9757

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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

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List of Trade Fractice Conferenc 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.

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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

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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

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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

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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

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

-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

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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

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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 Materials JJo_ U, Tentative Outlines and Summaries of
Studies iji Process, these materials are fully described).

Industry Studies

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

Administrative Studies

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 EVIDENCE 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

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

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