contract, both written and verbal which we make, or which are made by authorized agents in our employ.

8. Specifications accompanying a contract shall state the quantities, qualities and a complete description of articles specified.

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 7.

Our Obligation to Observe this Code of Ethics

The active and associate members shall at all times seek to elevate the standards of this industry, by practicing the ethical standards set forth in this code, and be enthusiastic in inspiring others in the business to do likewise.

Each individual who conducts his own business so that his honor will never be besmirched by his own acts or omission will aid in maintaining the honor of the entire industry.

The adoption of this code by the National Peanut Butter Manufacturers Association places an obligation on all its members to sincere and faithful performance of the rules of conduct so set down.

PETROLEUM

NATIONAL PETROLEUM MARKETERS ASSOCIATION A merger of two independent oil associations. Adopted. Oct. 1, 1920, by Chicago Conference:

TRADE PRACTICE SUBMITTAL

1. Discrediting Competitors. Too much effort is often times made by marketers in running down or discrediting competitors. There is no objection to making fair and reasonable tests of a competitor's products with those offered by others, with the view of showing the relative value of oils offered to do the work desired by the buyer, but false representations as to the actual value of a competitor's products or various other subterfuges, certainly reflect no credit even when an order is obtained, and we agree to avoid this practice.

2. Slanderous attacks on Competitors. Attacking a competitor as to his financial standing or personal integrity or his ability to serve the trade, is particularly reprehensible and even though certain suspicions may be well founded, the result obtained from practices of this kind re-act ultimately to the discredit of those making such claims and this policy we agree to avoid.

3. Condemnation of Competitors. Condemning a competitor because of the size of his business is not legitimate, whether he be large or small. A small distributor may sometimes have an advantage over a large one, and yet in many cases the reverse is true. More important in this connection are the methods employed and the character of those at the head of the business who dictate its policy. We agree not to indulge in unethical practices of this kind.

4. Advertising. Advertising should be at all times fair and honest. It is not discreditable to become enthusiastic in print about the goods you offer for sale, but to imply that your neighbor is not selling good products or to criticise him directly or indirectly is bad enough when practiced by salesmen but infinitely more serious is it when a paid advertisement conveys even your own apprehension (which may be well founded) to the general reading public as to your opinions of your competitor or of his wares and it should not be permitted.

5. Sales on Quality Basis. What we strictly desire to encourage is the sale of products on the basis of quality and intrinsic value. Salesmen should be encouraged to explain dili

gently and carefully the merits of their particular line and a fair and reasonable profit over and above the cost of the material itself, the distribution cost and a reasonable amount for overhead and profit is to be heartily commended.

6. Misbranding. We agree to avoid misrepresentation and misbranding any petroleum product, and that the brands shall in all cases truthfully set forth the grade and quality of goods offered for sale.

7. Service and Filling Stations. A service station is defined as a drive-in place where the business conducted is chiefly the dispensing of gasoline, and other petroleum products, having no connection with the display, sale, or repair of automobiles, or the enclosed storage thereof.

A filling station is defined as a place other than a service station, where gasoline and other petroleum products are sold to the public.

There is no objection to the installation of service stations for the sale of petroleum products when said stations are owned and operated legitimately by responsible marketers. Neither is there objection to the installation of curb pumps, tanks, and equipment, owned and operated in the same manner.

8. Commission Agency Agreements. A commission agency agreement is defined as the leasing of pump, tanks, and equipment, owned by others, with the understanding that the owners or their employees will make sales of gasoline and other petroleum products from such equipment at prices established by the lessee and as agent of the lessee. There is no objection to responsible marketers making commission agency agreements, but the total commission allowed shall not exceed the difference between the tankwagon and service station prices, and shall be in lieu of all other compensation including the use of pumps, tanks, and equipment, ground upon which located, etc. The form of commission agency agreement recommended is as follows....

9. Curb Pumps and Tanks. It is the sense of the conference that pumps and tanks should not be leased by marketers to retail distributors. If the practice is indulged in, the following conditions should govern.

Pumps, tanks, and equipment for storing and handling petroleum products in furtherance of the sale thereof, when leased to retail distributors must be at a rental which yields a reasonable profit on cost of same.

The minimum annual rental shall not be less than 10% of the selling price of said pump, tank, and equipment, in which is included a reasonable allowance for depreciation. The said selling price shall appear in each Tank Rental Agreement. The

sum of money specified in the lease for rental of such equipment must actually be collected monthly by the lessor....

Any other form of lease that may be used, shall not contain any provision restricting the lessee to the partial or exclusive handling or storing of the petroleum products of the lessor.

The leasing to, or sale to customers of curb pumps, tanks, and equipment, for a nominal consideration or without consideration, with or without a restricting agreement as to the products to be dispensed through such appliances is prohibited. Such contracts now in force must be cancelled not later than one year from Oct. 1st, 1920.

Pumps, tanks, and equipment owned by retail distributors shall not be leased from them at a fixed rental either with or without commission by those engaged in the wholesale oil business, viz., those making delivery by tank cars, tank wagon, or in barrels. This does not prevent the rental of drive-in service stations, pumps, tanks, and equipment in connection therewith, where same is to be operated by salaried employees of a marketer as a service station as defined in Rule 7.

10. Sale of Curb Pumps, Tanks, and Barrels. Where curb pumps, tanks, and metal barrels or other appliances for the distribution of petroleum products are sold by those engaged in the oil business, the price shall be the same as offered to the trade by the manufacturer, and in no case shall the terms of payment be extended longer than twelve months from date of delivery of said equipment. It is understood that the sale of the above equipment shall not be conditional upon the sale of petroleum products. 11. Cash Discount. The sale of products from service stations, filling stations, and tankwagons shall be based on net prices, without a cash discount of any kind. This applies to coupon books or any similar method of marketing.

12. It is the sense of this conference that all tankwagon, service station, and filling station sales be for cash at time of delivery, or as nearly as it is practicable, and any practice that tends to make such sales on a credit basis is deplored and condemned.

13. Secret Rebates and Settlements. We discourage and abhor all forms of secret rebates or settlements whereby books and accounts can be so manipulated as to cover up the actual conditions. For instance we strongly condemn refunding of any amount to the purchaser unless it is clearly shown for what reason the refund is made and that it is legitimate, and charging funds returned to accounts other than the proper ones, we consider unfair and unwise and it is prohibited. We agree that we shall not pursue the aforesaid prohibited practices.

14. We condemn most severely the payment of money

or anything of value for any service performed or to be performed in order to influence a sale. The practice of invoicing a less quantity than the actual amount is prohibited. We also agree not to pay more than the market price for empty barrels in the control and under the supervision of engineers or superintendents of plants. Barrels, when returned, should be credited to the accounts of the individual or concern by whom they are owned, and cash payments or credit memorandum sent to such individual or concern, which indicates to the parties interested that they have received full market price for the returned empties. No subterfuge is allowable under this rule, which we agree to respect.

15. Unfair Contracts. We object to and will not indulge in the making of contracts with the ultimate consumers or users of fuel oils, gas oils, distillates, kerosene, naptha, or gasoline, at a fixed price guaranteeing against an advance and protecting in case of a decline. There is no objection, however, to basing contracts on a market decline or advance, but it should have the merit of working both ways. The above does not apply to contracts on above products, between the different branches of the producing, manufacturing and marketing ends of the petroleum industry, nor does it apply to the making of contracts with the ultimate consumer, or users of lubricating oils and specialty goods.