case may be) to use the same within the countries specified in Clause 2 hereof. Whenever Levinsteins shall have disclosed a patented or secret process to the duPont Company as aforesaid Levinsteins shall give notice in writing to the duPont Company that they may obtain similar licenses to use the same within the said countries.

6. The royalties payable under any such license as is referred to in the preceding clause by the party accepting the license shall be five per cent. on the selling value of the finished product delivered in the country of manufacture. In the case of a patented invention the royalty shall not be payable beyond the existence of the patent, and in the case of a secret process shall be payable only during the continuance of this agreement. The royalties payable to Levinsteins under this clause shall be additional to the twenty-five thousand pounds a year mentioned in Clause 3 hereof.

7. In any notice given as aforesaid the party disclosing such patented invention or secret process shall request the other party to elect within a period expiring three months after service of such notice whether such other party accepts a license for the invention or process set forth in the notice and the other party shall elect within said period whether it accepts such license. In default thereof such license shall be deemed not to have been accepted.

8. Each of the parties to whom any such license as aforesaid shall have been granted may grant, within the limitations of such license, sub-licenses in respect thereof to any or all of its respective subsidiary or allied companies (or to any other persons by mutual consent); but every such sub-license shall be subject to all the terms and conditions contained in the grant of the license so sub-licensed and shall also contain terms, conditions and obligations requiring such sub-licensee to do such acts as may be necessary or proper to enable the party granting such sublicense to observe all the terms and conditions and to perform all the obligations on its part contained in the grant of the license so sub-licensed. No such sub-license in respect of any such license shall be granted by any sub-licensee, nor by any of the parties

hereto, except as hereinbefore provided, without the consent in writing first obtained from the party that shall have granted the license so sub-licensed.

9. Each of the parties hereto agrees that if, at any time during the continuance of this agreement, it shall obtain or acquire a right in or license under any patented invention or secret process coming within the terms of this agreement, which right or license is so limited that it can make no grant or license to the other party upon the terms and conditions herein set forth, it shall use its best endeavors to assist such other party to obtain or acquire a right in or under such invention or process upon the terms and conditions herein set forth, but neither party shall be under any obligation to purchase or pay for any right or license for the benefit of the other.

IO. Each of the parties hereto agrees not to make or consent to any disclosure of any of the secret processes of the other except to sub-licensees or to do or consent to any other act that impair or depreciate the value of any exclusive license granted by it in pursuance of this agreement, or that shall impair or depreciate the value of the right, title and interest in any patented invention or secret process not granted to it by the other party, and to take all reasonable care to prevent any such disclosure or act.

II. As the effect of this agreement is that each party will have non-exclusive rights to the patented inventions and secret processes of the other in Russia, it is agreed that before commencing to build any works in Russia the parties will endeavor to arrange for joint co-operations there should such prove feasible.

12. It is intended to hold in June, one thousand nine hundred and seventeen, in America, a meeting by representatives of the parties hereto for the purpose of arranging selling facilities for non-exclusive Asiatic territory, particularly Japan and China, the intention being to arrange, if possible, a joint selling company, the capital of which is to be subscribed and its sales to be divided, as nearly as possible, in equal parts by the parties hereto.

13. Each of the parties hereto agrees, whenever and so often as requested by the other party, but at the expense of such other

party, to assist in defending any letters patent under which any licenses shall have been granted as herein provided, and for that purpose to furnish to such other party all information and evidence in its power.

14. Each of the parties hereto agrees, whenever and so often as requested by the other party, to execute all such other instruments in writing as may be necessary or proper for the purpose of further assuring and confirming the grant of any license as herein provided, or for the purpose of enabling such grants to be filed or recorded in any public office.

15. If any difference or dispute shall arise between the parties hereto in respect of this agreement or any matter or thing relating thereto, the same shall be referred to the president for the time being of the duPont Company or his nominee, and the chairman for the time being of Levinsteins or his nominee who shall arbitrate the same, and whose award shall be final. If, however, the said arbitrators shall fail to agree, they shall appoint an umpire, whose award shall be final, which umpire, if the question or matter to be decided relates to a patented invention or secret process of Levinstein's, shall be an American, and if the question or matter to be decided relates to a patented invention or secret process of the duPont Company, shall be an European. If said president and chairman fail to agree as to the appointment of such umpire, then such umpire, if required as hereinbefore provided to be an European, shall be appointed by the president for the time being of the Law Society of England, or if required as hereinbefore provided to be an American, shall be appointed by the president for the time being of the Association of the Bar of the City of New York.

16. The benefits and obligations of this agreement shall inure to and be binding upon the parties hereto and their respective legal representatives and successors but shall not be assignable by either party without the consent in writing first obtained from the other party, but such consent shall not be requisite in the case of any assignment of the whole or greater part of the undertaking of either party.

17.

This agreement shall terminate on the first July, one

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thousand nine hundred and twenty-seven, but unless six months' written notice shall have been given by either party to the other prior to the first July, one thousand nine hundred and twentyseven, or prior to first July in any.subsequent year, it shall continue in force from year to year thereafter.

E. I. DUPONT DE NEMOURS & COMPANY,
By J. Amory Haskell, Vice-President.

For and on behalf of LEVINSTEIN, LIMITED,
John B. Zornsdale, Chairman,

Herbert Levinstein, Managing Director.

EXHIBIT XXIV.

METHODS OF COMPETITION DECLARED UNFAIR BY THE FEDERAL

TRADE COMMISSION.1

"Among the methods of competition thus far condemned by the Commission may be mentioned the following:

Misbranding of fabrics and other commodities respecting the materials or ingredients of which they are composed, their quality, origin or source.

Adulteration of commodities, misrepresenting them as pure or selling them under such names and circumstances that the purchaser would be misled into believing them to be pure.

Bribery of buyers or other employees of customers and prospective customers to secure new customers or induce continuation of patronage.

The payment of bonuses by manufacturers to salesmen of jobbers and retailers to procure their special services in selling their goods; and making unduly large contributions of money to associations of customers.

Procuring the business or trade secrets of competitors by espionage, by bribing their employees, or by similar means. Procuring breach of competitors' contracts for the sale of products by misrepresentation or by other means.

Inducing employees of competitors to violate their contracts or enticing away employees of competitors in such numbers or under such circumstances as to hamper or embarrass them in business.

Making false or disparaging statements respecting competitors' products, their business, financial credit, etc.

The use of false or misleading advertisements.

Making vague and indefinite threats of patent infringement suits against the trade generally, the threats being couched in such general language as not to convey a clear idea of the rights.

1See U. S. Federal Trade Commission. Annual report, 1920, pp. 56-57.