betterment in which his special training and experience qualify him to act. 3. The lumberman should gather and disseminate practical and useful information relating to the building business in order to provide the public with fair and correct general understanding of building matters, and also to refute untrue, unfair or exaggerated statements on such subjects appearing in the public press or elsewhere. 4. The lumberman should inform himself on the provisions and decisions of the United States Income Tax Law, so that his annual report will comply with the law, and be found correct in all particulars by government inspectors. 5. The lumberman should inform himself concerning the local, state and national laws regulating the lumber business, particularly those relating to housing regulations, health and sanitation, and should always co-operate with the proper authorities in the enforcement of such existing laws. The lumberman should interest himself in all proposed legislation affecting the lumber industry, study its provisions, justice and fairness and take measures, in connection with others, to see that the best interests and welfare of the retail lumber industry and the community are safeguarded. Section Five-Rules of Conduct with Customers Dealers will create confidence with the purchasing public by deserving it. The object of rules of conduct under this section is to make satisfied customers. 1. The dealer should take advantage of no man's ignorance, and should see that employees are truthful and straightforward, and that they do not misrepresent or overcharge. Treat the keen and the confiding buyer alike. 2. The dealer must not take unfair advantage of purchasers by profiteering in seasons of great demand, short supply, or in other emergencies. 3. The dealer should adopt some rational and efficient cost system so that he may secure a just and fair percentage of profit on all sales. In figuring the cost, the dealer must not only include labor and material, but also the proportionate cost of wear and tear of plant and equipment, interest on borrowed money, losses in business and all other expenses which arise out of the operation of the business. 4. The custom of giving out-of-the-ordinary service, or giving extra service without charge, is not good business. A fair remuneration should be charged for such transaction. 5. The dealer should be accurate in his printed or oral words, whether they be part of a sales talk, or general conversation with patrons or others. Accuracy is not only the absence of actual misstatement, but also the presence of any facts which will prevent the hearer or reader taking a wrong inference or making an incorrect deduction. 6. Any wilful misrepresentation as to market condition or supply to justify prices charged is fraudulent and therefore to be condemned. 7. Advertisements which are false, or which have a tendency to mislead or which do not convey the whole truth, or which do not conform to business integrity, are unethical. ARTICLE 4 Rules of Conduct Governing the Making and Executing of Contracts The rules of conduct under this section have as their object the regulation of contracts between all of the parties mentioned in the code, to-wit: The Employer and Employee, buyer and seller, the lumberman and the purchasing public, etc. 1. Contracts should be made so that all of the parties to the contract are mutually benefited. 2. A contract should be simple in offer and acceptance, sufficiently formal to be valid, with the considerations concisely expressed and with an object unquestionably legal. It should avoid obscure language, useless verbiage, and the inclusion of socalled "joker" clauses. 3. A contract should never be signed without reading and fully understanding it. 4. Dealers should refuse to sign a contract, the provisions of which are not mutually beneficial. 5. The terms of the contract should be carried out according to the spirit as well as to the letter of the agreement. 6. The word-of-mouth contract is as valid as the writ ten contract, and must be as faithfully carried out. 7. Dealers should always uphold the honor and integrity of their trade by faithful performance of all of the provisions of the contracts, both written and verbal, which they make, or which are made by authorized agents in their employ. 8. Specifications accompanying a contract should not only state the quantities, qualities and a complete description of articles specified, but also clearly define the trade terms used or trade names and customs understood to be part of the specifications. 9. It is unethical to cover possible oversights and errors in either contracts or specifications by indefinite clauses or clauses which are capable of two interpretations. ARTICLE 5 Rules of Conduct to Cover Certain Well Known Violations of Ethical Practice 1. The giving of gratuities whether by the payment of money, presents, treats, advertising, commissions or any other means, to contractors, representatives or employees of competitors, or to public officials is commercial bribery and is not only unethical but in many jurisdictions is contrary to law, and in Interstate Commerce is contrary to the decisions of the Federal Trade Commission. 2. Advertising shall not be purchased unless when critically analyzed from a business standpoint the medium offered is calculated to bring a return. Advertising for any other reason is unethical. ARTICLE 6 General Provisions Respecting the Code and the Obligation to Its Observance Since lumber yards require a certain amount of saved money designated as capital for the establishment of the business, the right of such capital to an adequate return for its use is affirmed. The dealer should at all times seek to elevate the standards of the retail lumber business by practicing the ethical standards set forth in this code, and be enthusiastic in inspiring others in the business to do likewise. Each individual dealer who conducts his business so that his own honor will never be besmirched by his own act or omission, will aid in maintaining the honor of the entire retail lumber business. The adoption of this code by the Northwestern Lumbermens Association places an obligation on all its members to sincere and faithful performance of the rules of conduct so set down. MARBLE NATIONAL ASSOCIATION OF MARBLE DEALERS STATEMENT OF PRINCIPLES Resolved, by the Board of Directors of the National Association of Marble Dealers, that the following principles be promulgated as an expression of opinion on the part of this Association as to what constitutes fair methods of competitive bidding in the marble industry; that a copy of this Statement of Principles be printed as a suggestion for fair trade customs in the marble industry, and that they be recommended for adoption by all persons interested in the marble industry in the capacity of bidders or persons receiving bids for marble. 1. It is not considered fair for owners or architects to solicit bids direct from sub-contractors in cases where they are also soliciting bids from general contractors on the work as a whole. When there is no immediate intention of actually letting a contract, it is not fair to put either the general contractors or the sub-contractors to the expense of preparing actual bona fide bids. When such bids are invited and especially on a competitive basis, and where submitted in good faith, the bidders are entitled to assume that the contract will be awarded to someone on the basis of the bids as submitted. Contractors and sub-contractors should be willing to furnish approximate estimates of cost for the guidance of owners and architects in connection with the preliminary consideration of proposed building operations, but if actual bona fide bids are requested for information only such purpose should be stated, and where there is no immediate intention of going ahead with the work, it would be only fair for those soliciting the bids to pay the cost of preparing the same. 2. It is considered unfair to ask contractors and subcontractors invited to submit bids on work, to pay for the plans and specifications necessary to enable them to prepare the esti mates. 3. Fair dealing requires that a general contractor should award the sub-contract to that bidder on the sub-line whose figure he has used in his own estimate upon which he secured the general contract. 4. Any bid on any sub-line received and knowingly opened as such by a general contractor, prior to the submission of his own bid, should be considered a solicited bid whether submitted at the request of the general contractor or not. 5. It is not considered fair to conduct a second bidding upon the same plans and specifications after one set of bona fide competitive bids have been received. Therefore, if a general contractor secures a contract involving interior marble work without making use of or receiving bids upon the marble work prior to securing the contract, he shall have the benefit of all the bids already submitted by the marble contractors, but it is not considered fair for him to open the marble work to new bidders after the first set of bids have been submitted and inevitably become disclosed. It is equally unfair to open a job to new bidders with only minor changes in plans and specifications; it is also equally unfair to confine the purchaser to the original bidders when major changes are made. In the interest of all concerned, some reasonable and definite rule should be established as a Trade Custom, in this connection. 6. Anyone receiving and opening bids on marble work should keep them confidential until the marble contract has been awarded. The only satisfactory alternative to this is to appoint a day and hour for the opening of bids, and then open and read them publicly in the presence of all the bidders. Either plan is sanctioned by this Association. Divulging information relative to bids in such a manner as to result in favoritism is condemned no matter how it may be brought about. 7. Fair and just dealing requires that the contract for the marble work be awarded promptly to the satisfactory bidder at the price named in his bid without attempting to dicker or trade between the bidders themselves or with other parties who may not have submitted bids. If for any good reason new bids on revised plans must be asked for, every bidder whose bid has been opened in the first instance, should be permitted to bid at the second opening. 8. When competitive bids have been requested and received upon a lump sum basis, it is not considered fair for anyone except the low bidder to take the contract upon a percentage basis. 9. Because of difficulties and misunderstandings in the past in the endeavor to adjust certain charges often made against sub-contractors, marble bids should contain no allowance for any of the following items: General cleaning, plaster patching, office or telephone. service, light, heat, insurance on materials in or at the building |