tract or contracts existing between competitors and their customers or their suppliers, or wilfully interfering with or obstructing the performance of any such contractual duties or services, with the purpose and effect of unduly hampering, injuring, or embarrassing competitors in their businesses, is an unfair trade practice.
Rule 9:
Securing information from competitors concerning their businesses by false or misleading statements or representations or by false impersonations of one in authority and the wrongful use thereof to unduly hinder or stifle the competition of such competitors is an unfair trade practice.
Rule 10:
It is an unfair trade practice for any member of the industry engaged in interstate commerce in the course of such commerce either directly or indirectly to discriminate in price between different purchasers of industry products sold for use, consumption, or resale within the United States or any place subject to it’s jurisdiction, whether in the form of price differentials, discounts, terms of payment, transportation allowances, free goods, services or otherwise, and where the effect of such discrimination may be to substantially lessen the 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 commodities on account of differences in grade, quality, or quantity of the commodity sold, or that makes only due allowance for the 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: And provided further, That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade.
Rule 11:
The practice of imitating or causing to be imitated, or directly or indirectly promoting or aiding the imitation of, the trade-marks, trade names, or other exclusively owned symbols or marks of identification of competitors, or the exclusively owned patterns of competitors which have not been directly or by operation of law dedicated to the public, having the capacity, tendency, or effect of misleading or deceiving purchasers or prospective purchasers or the consuming public, is an unfair trade practice.
Rule 12:
The practice of selling goods below the seller’s 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 unreasonably restrain trade, is an unfair trade practice; all elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this rule.
Rule 13:
The practice of using any product of the industry as a "loss leader" to induce the purchase of other merchandise, the sale of which merchandise is used to recoup the loss sustained on the "loss leader" product so sold, with the tendency or capacity to mislead or deceive purchasers or prospective purchasers and which unfairly diverts trade from otherwise injures competitors, is an unfair trade practice.
GROUP II
The trade practices embraced in Group II rules do not, per se, constitute violations of law. They are considered by the industry either to be unethical, uneconomical, or otherwise objectionable; or to be conductive to sound business methods which the industry desires to encourage and promote. Such rules, when they conform to the above specifications are are not violations of law, will be received by the Commission, but the observance of said rules must depend upon 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 manner as to become unfair methods of competition in commerce or a violation of any law over which the Commission has jurisdiction, appropriate proceedings will be instituted by the Commission as in the case of violations of Group I rules.
Rule A:
The practice of shipping goods on approval or on consignment or pretended consignment, which goods have not been previously requested or ordered, is condemned by the industry.
Rule B:
A Committee on Trade Practices is hereby created by the industry to cooperate with the Federal Trade Commission and to perform such acts as may be legal and proper to put these rules into effect.
Certified to be a true copy of the original.
[Filed, march 13, 2936; 10:56 a. m.]
SECURITIES AND EXCHANGE COMMISSION.
United States of America—Before the Securities and Exchange Commission
At a regular session of the Securities and Exchange Commission held at its office in the city of Washington, D. C., on the 13th day of March, 1936.
Commissioners: James M. Landis, Chairman; George C. Matthews, Robert E. Healy, J. D. Ross, William O. Douglas.
File No. 31-11
In the matter of Application Pursuant to Section 3 (a) of the Public Utility Holding Company Act, by The Cleveland-Cliffs Iron Company; The Cliffs Corporation; Wm. G. Mather, Cyrus S. Eaton, and Edward B. Green, as Voting Trustees; Wm. G. Mather, S. Livingston Mather, and G. G. Wade, as Voting Trustees; Wm. G. Mather, individually; and Pursuant to Section 2 (a) (8) of said Act by the Cliffs Corporation.
ORDER AUTHORIZING HEARING AND DESIGNATING OFFICER TO CONDUCT PROCEEDINGS
An application having been duly filed with this Commission, by The Cleveland-Cliffs Iron Company, by The Cliffs Corporation, by Wm. G. Mather, Cyrus S. Eaton, and Edward B. Greene, as Voting Trustees of certain shares of common stock of The Cleveland-Cliffs Iron Company, by Wm. G. Mather, S. Livingston Mather, and G. G. Wade, as Voting Trustees of certain shares of common stock of The Cliffs Corporation, and by Wm. G. Mather, individually, pursuant to Section 3 (a) of the Public Utility Holding Company Act of 1935, and by The Cliffs Corporation pursuant to Section 2 (a) (8) of said Act:
It is ordered, that the matter be set down for hearing on the 3rd day of April, 1936, at ten o’clock in the forenoon of that day at Room 1101, Securities and Exchange Building, 1778 Pennsylvania Avenue NW, Washington, D. C.; and
It is further ordered that Charles S. Moore, an officer of the Commission, be and he hereby is designated to preside at such hearing, and authorized to adjourn said hearing from time to time, to administer oaths and affirmations, subpoena the witnesses, compel, their attendance, take evidence, and require to production of any books, papers, correspondence, memoranda, or other records deemed relevant or material to the inquiry, and to perform all other duties in connection therewith authorized by law; and
It is ordered that any interested state, state commission, state securities commission, municipality, or other political subdivision of a state, or any representative of interested consumers or security holders, or any other person, desiring to be admitted as a party in this proceeding or to offer evidence in this matter, shall give notice of such intention to the Commission, such to be received by the Commission not later than March 30, 1936.
