Sends Out Trade Practice Agreement For Signature by Millwork Industry

Following close upon the heels of the splendid Trade Practice Conference of the Millwork Industry which was held in Chicago, May 15th, 192f., at which more than 84 per cent of the entire industry was represented, the Federal Trade Commission has mailed to the millwork concerns of the entire country an agreement, which, if signed and filed with the Commission, obligates the signer to join the other signers in abiding by the rules that were drawn up at that conference.

The agreement is as follows: in one order and at the optio-n of the shipper are moved as one shipment."

FEDERAL TRADE COMMISSION.

Rule 6-"Price Discrimination" (freight and drayage).

"As the failure of the industry to adopt uniform practices with respect to re,quiring purchasers of millwork products to pay transportation and trqcking charges has inevitably resulted in unfiir price discrimination,-the allos'ance.of transportaiion or trucking chirges on,products. sold on f.o.b. mill Sasis, or if such products are soldan a- delivered basis transportation charges to be piid by the consignee, the allowance of_ transportation or trucking charges in excess of the actual amount of such charges is an unfair trade practice: Provided. however, ttrat nothing herein slrall be construed t-o prevent the pay- ment -by the seller at his option of trucking chaiges within 'ciiy limits."

Gentlemen: Millwork Industry

Washington, D. C.

In consideration of the aban{onment by others in the industry of practices covered by rules adopted in resolution form at the Trade Practice Conference held by th-e Federal Trade Commission for the millwork industry at Chicago, Illinois, May 15, 1928, and for the prlrposi of placing as near as may be all in the industry on an equally fair competitive basis, the undersigned hereby subscribes to, and the undersigned and such gthers as now have subscribed or in the future shall subscribe, hereby mutually agree to abide by said rules, copy of.which has been received and read by the undersigned.

(Name qf Company)

(Name atrd titlg of officer signing)

(Address- of Company)

Date:

The rules which this refers t9 have been arranged in two groups: Those under Group I ari affirm-qtively approved by the Commission; those under Group II are accgpted by the Commission as expres'sions of the trade.

GROUP I

Rute l:-"Inducing Breach of Contract".

"The wilful interference by 4ny person, firm, corporation or association, by any means or d-evice whatsoever, with any existing contact betwegn a manqfacturef and a wholesale distributoJ, or any other party, or between a wholesale distributor and a retail distributor, contractor, ionsumeg, or any other party, in or about the production, manufacture, tranqportation, purchase or sale of any millwqk product, or the perfgrmance of any contractual duty or service connected therewith, such interference being for the purpose or with the effect of disgipating, destroying or appropriating in whote or in part the patronage, property or business of another engaged in such industry, is unfair trade practice."

Rule 2-"Misbranding".

"The marking or branding of ,products of the millwork industry for the purpose or with the e$ect of misleading or deceiving puichasers with respect to the quantity, quality, grade or substance of the goods purchased, is an unfqir trade practice."

Rute F'Fraud and Misrepresentation".

"The sale or ofiering for salg of any product of the millwork industry with intent to deceive customers or prospective customers as to the quantity, quality, substance or size of such product is an un- fiir trade practice."

Rule 4-"Secret Rebates".

"The payment or allowance of secret rebates, refunds, credits, or unearned discounts, whether in the form of money or otherwise, or extending to certain purcha-sers special services or privileges not extended to all purchasers under like terms and conditions; is an unfair trade practice."

Rule S-"Price Discrimination" (selling prices).

-"Any discrimination.in price of millwork pioducts between purchasers of the same class, not including disCrimination in prici on account of_the difference in gra-de, quality or quantity of the-product sold, or which makes only dug allowance for difteience in tost of selling- and transportation, or discrimination in price in the same or difrerent communities not lnade in good faith- to meet comoetition, where the effect of such discrimination may be to substantialtv tessen cor;rpetition or tend to qreate a monopoly, is an unfair tradl practice: Providcd, however, th-at nothing in thil resolution shatl be constru€d'to prevent the publication and use of a special ouantitv price applicable to a definite quantity of goods which are- placei

Rule 7-"Price Discrimination" (packing charges).

"$_s-packing charges are nec_essarily reflected in price, and as the variable practice on the part o-f sellers of millwork- products of re- quiring purchaser-s-in some ingtanc.es to pay published charges for packing is an unfair trade pragtice."

Group Ii

Rule 8-"Guaranteed Prices" Qrgainst decline or advance),

"Thc sale or offering for salg of any prodpct of the millwork industry under qny fgrm of gua-rantee to the purchaser or proposed purchaser ?gainst both advance and protection against dlcline in the price of the said product, is an unfair trade practice,"

Rule 9-"Anti-Dumping",

"The practice of certain manufacturers and wholesale distributors of shipping considerable quantities of surplus stock into territories o'lside_their-particular marketg, and of selting such stock at prices below the qrices established for their own territories, seriouslylends to demoralize the market for millwork products within the territories -into which shipments ar-e made, disrupts normal competitive conditions throughout the entige industry, and is condemned as an unfair trade practice."

Rule lfDefinition of a "Quatified Distributor".

"The industry hereby recor{s its approval of the definition of a gualified whole,qale distributor gf millwork to be one whose principal business is selling millwork to the retail distributor, carriei a well selected stock of merchandise, buys in suitable quantities, warehouses a reservc stock for retailers within a radius of economical distribution and convenience of service, resells in proper units to the retailer as economicalty as possiSle, assumes the credit risk and iuch othtr.obl.igations as are incident to the transportation, warehousing end distribution of sash, doors and millwork,'r

Rule ll-"Terms of Sale". :

. "Ttr. industry hereby recordg its approval of the practice of makilrS ^tl!9 t€rms of sale a- part 9f all published price schedules, and the failure on the part of wholesale distributors br manufacturirs to strictly adhere to such terms of sale and enforce cotlection under suc_h, shall be termed an unfair trade practice.',

Rule l2-"Distribution of Price- Lists".

.'The industry hereby recordg its approval of the practic{ of dis- triluting and circulating to the entiie industry curient price lists and all notices of advance or decline in pricei made by-any individual distributor or manufacturer, either by the individuit distributor or manufacturer or by the association or group her may be identified with."

Rule l3-"Arbitration".

..."Th9. industry hereby re-cordg its-approvat of the practice of hanoung crsputes tn a tatr and reasonable manner. coupled with a soirit oJ m.oderation a-nd go-od will, and every efroit should be maaC Uv the dispu_tants-themselves to arrive at an agreement. If unable to do so,, arbitration under some one of the pr&ailing codes shoutd be lgre-ed upon, -as at all times pleferable to titigatiSn with its iostly handicaps and delays."

Rute l4:"Selling Without Specifications".

"The acceptance by wholesale distributors and manirfacturers of contracts for the sale of miltw_ork to deaters or wholesale aistribu- tors of- this product without stltement of specifcations, afiordi oo- porLunity for the reje-ction of such contracls by the piocn .Jis 6" d-eclinc- of price, -provides an artificial stimulus to the industry throueh the-.cxistensc of Iarge-numbers of unconfirmed contracts, with r:e- sulting enhancement of prices to consumcrs, and constituies an un- fair trade practice: Proyided, ftowever, that'nottring tiiE, stiit dl co-l-strued to_ prevent the acc€ptuce of contracts for the satc of miltwork under the terms -oi fhich complct" spc"ifii"tfii ;ili t; furnished within ten days froni date of e':cecution."

Little Poems On Homes

By Adeline M. Conner

Hearts and Homes

The roses dream of the dawn-light, The river longs for the sea, And for aye the birds are singing, Of nests in the wild-wood tree' For the roses the dawn-light's splendor, For the river, the curling foam, For the bird, a nest in the wild-woodFor the human heart-a HOME.

Seeking a Horne ' A restless breeze goes straYing, Across the landscape fair, It whispers in the tree-toPs, It searches here and there. It rustles through the grasses, It flies across the fenIt cannot rest until it finds, The little homes of men.

(Continued from Page 30)

Rule l5-"Definition of Qualified Manufacturer"'

"The industry hereby record.s its approval--of the definition qf- a oo"tinia marruf-acturer -of sash,' 'doors -and miltwork,to. be one who sells to qualified wholesale distlibutors and to the-legrtmate retatl trade in not less than cartoad lots, at a reasonable drtterentlal ln ;;i;; ;;;t the price at which th-e wholesale distributor is sold by the manufacturer,"

Rule lL"The Principle of a Reasonable Differential".

"Recognizipg that the expens.e of manufacturing,-selling and transoortins miltwort< products is appreciably higher for small-quantlty ltin i6r laige-quantity lots, and'ilrat the failure to apportion to each shipment oimillwork its correct proportion of such expense necessaiily it cr.ases the cost of other shipments, -the millwork indrrstry tiriirv records its approval of the principle of a reasonable differential iri prices in the-siveral lypqt q"! tharacters of sales."

Rule l7-"Adherence to Published Prices".

"WHEREAS, It is the general practice of sash, door .and mitlwork distributois to issue priqi schedules from time to time, such schedules presumably representing their selling- price.on give-n qu-a.1tities for ihipment io the destination or territory indicated, while as a matter of fact, in many iSrstances the sole purpose of s,ending out such schedules is with the idea of gathering in such orders as may come from the unwary buyers and trusting customers' at the same time making secret priceg to favored buyers and,competitors' customers in the way of r-ebates and supplying certain items at cost or tess, special cash discounts and gifts and many other unbusinesslike methods in order to'efiect the sale:

"WHEREAS such practices are discriminatory as between purchasers and encourage dishone.sty on the part of salesmen and the public, and should be condemned by other reputable merchants: