October, 1933
another man’s labor and investment.
It is probable that severe penalties
will be attached to violations of these
provisions and anyone adjudged
guilty will run the risk of a heavy
fine and probably ultimate dissolu
tion of his business.
The code has wisely provided for
a committee of arbitration so that no
well meaning manufacturer may be
imposed on in the event there is a
similarity between his product and
that of another producer, and he
might be made the object of unjust
persecution. The code provides that
these violations must be found to be
intentional. Already, there has ap
peared in the industry some contro
versy as to the similaritvof various
machines. Contentions/ oi^a^QUS
manufacturers shmild not take the
form of arbitrary claims, but should
be entered in/RfBjLeveryone concerned
with a spirit of consideration for all.
The code is not designed to make
it possible for one man or group to
dominate the industry but was de
signed for the protection of all. In
order to eliminate a great deal of
friction that might develop manufac
turers should take definite steps to
establish their priority by being sure
of the source of their ideas, their de
signs and the development of their
machines.
Hand in hand with the activities of
the manufacturers in developing the
code the coin machine distributors
met in Chicago October 13 and 14 in
a general session to effect contacts
that would clarify the various provi
sions so that there would be no fric
tion developed between the producing
and distributing agencies. Jobbers
and distributors, through the National
Automatic Distributors Association,
have gone on record as being opposed
to selling of machines that are direct
copies. They have agreed that they
will maintain the price structures that
are set up by manufacturers. In
other words, manufacturers will de
termine individually who shall be
their distributors. These distributors
will buy their machines at distributors
prices. These distributors, in turn,
will sell to the jobbers at the jobbers
price and the jobbers, in turn, will sell
S
THE COIN M A C H I N E J O U R N A L
Code of Trade Practices
Adopted by the
NATIONAL ASSOCIATION OF COIN-OPERATED
MACHINE MANUFACTURERS
(To be attached to and become a part of the Code of Fair
competition for the manufacturers of coin-operated machines)
(Under the National Industrial Recovery Act)
The following provisions are hereby adopted and made a part
of this Code:
s
The intentional misrepresentation of the products sold, or the
c l I making, or causing or permitting to be made or published, of
any false, untrue, misleading or deceptive statements, by way of
advertisement, invoice, or otherwise, concerning the size, quan
tity, character and nature of any coin-operated machine or kin
dred products, bought or sold, is a violation of this Code.
(
Withholding from, or inserting in any invoce, words or fig
ures which make or tend to make such invoice a false record,
wholly or in part, of the transaction represented on the face
thereof, and of the payment or allowance of secret rebates, re
funds, credits, unearned discounts, whether in the form of money
or otherwise, is a violation of this Code.
The making of, or causing or permitting to be made, any false
£ I or deceptive statements, either written or oral, concerning installa-
' tions or sales previously made, or the claiming by any manu
facturer that equipment actually supplied and installed by others
was supplied and installed by him, or the making of any other
misleading or deceptive statements, is a volation of this Code.
(
.
To imitate or simulate the trade mark, trade name, package,
wrapper or label of a competitor’s product to such a degree as
to deceive or have a tendency to deceive customers, is a viola
tion of this Code.
(
/
.
The intentional substantial copying of the design or construc-
0 J tion of a machine containing new or novel features, or any ma
terial parts thereof, after it has been nationally marketed, is a
violation of this Code.
Inducing or attempting to induce, by any means or device
whatsoever, a breach of contract between a competitor and a cus-
tomer during the term of such contract, is a violation of this Code.
I t I
'
. . *
( 2 )
^ ^
/I Y
I O I
Securing information from competitors concerning their busi-
nesses by false or misleading statements or representations, or by
false impersonation of one in authority, and the wrongful use
thereof to unduly hinder or stifle the competition of such com
petitors, is a violation of this Code.
Wilfully enticing away the employees of competitors with the
purpose and effect of unduly hampering, injuring, or enjbar-
rassing competitors, is a violation of this Code.
to the operators at the operators price.
Such an arrangement can only
bring good to the industry and almost
automatically eliminate chiseling of
prices.
If adhered to religiously every
Enhanced Scans © The International Arcade Museum
manufacturer will have an even break
in getting his machines on the market
and these distributing agencies will
have an even break in the distribu
tion, and final profits that result from
their sales. (Continued on Page 13)
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