Far sale by the Superintendent of Documents. Washington, D.C. Price 5 cent
Approved Code No. 201--Supplement No. 5
Registry No. 1625--59N
NATIONAL RECOVERY ADMIINISTRAITION
S UPPLEMRIENrJTA RY
CODE OF FAIR COMaPETITION
(A Division of the W'holesaling or Distributing Trade)
AS APPROVED ON APRIL 16, 1934
WE DO1 OUR PART
. Of FL U2.
GOVERNMENT PRINTING OFFICE
This publication. is for sale by the Superintendent of D~ocuments, Government
Printing Office, W~ashington, D).C., anld by district offices of the B~ureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
ABtlanta, Ga.: 504 Post Offiice Building.
Birmingham, ASla.: 257 Federal Building.
Boston, M~ass.: 1801 Customhouse.
Buffalo, N.Y.: Ch~ambe~r of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
D~allas, Tex.: Chamber of Comnmerce Building.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Lrouisville, K3y.: 408 Federal Building.
le~mphis, Tenn. : 229 ~Federal Building.
Minneapolis, Mlinn.: 213 Federal Building;.
New Orleans, La.: Room 225-A. Custombouse.
New York, N.Y.: 734 Customohouse.
Norfolk, Va.: 406 ]East Plum Street.
Philadelphia, Pa.: 422 Commercial TCrust Building.
Pittsburgh, Pa.: Chamber of Commeree Building.
Portland, Oreg.: 215 New8 Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Franeleco, Calif.: 810 Custombouse.
Seattle, Wash.: 809 F'ederal Office Building.
Approved Code No. 201--Supplement N~o. 5
SUPPILEMI[ENTARY CODE OF FAIR COMPETITION
WHO]LESALrE MILL[INE)RY TrRADE~
Alls ~Approved on April 16, 1934
SUPPLEMENTAL CODE OF FAIR COMPETITION FOR THrE HVOL;ESAL;E
A DIV'ISIN OF THE WHOCLE..INGG OR DISTRIBUTING TRADE
An applications having been dulyT made pursuant to and in full
complinne~e wIith the prov,\isio~ns of T'itle I: of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mlent~al Code of Fair Comnpetition for the W~holesale Millineryr Trade
to the Code of Fair Compe tition for thne Whlole~sling~ or Distr~ibuting
Trade, and hearings having been duly held thereon and the annexed
report on said Code, containilng findings wICith r'esp)ect thereto, having
been made and directed to the Presiident~l:
N~OWII, TICHEREFORE, on behalf of the ]President of the United
States, I, Hugh S. Johnsonl, Admlin~istrator for Inrdustrial Recovery,
pursruant, to authority vested in me by Executive Orders of the. Pres-
ident, including Executive Order No. 6543-A, dated D~cemlber 30,
1933, and otherwise; do hereby incorporate by reference. said an-
nexed report alnd do find that said Supp~lemental Code complies in
all espctswit th petinnt revisions and will promote the pol-
icy anld purposes of said TitleofsiAc;ndohebyoerta
said Supplemnental Code of Fair Comnpetition be andi ,St odeis here~byta
Huncr S. JOHNSON,
Adm,~inisrtrator for Industrial Recovery.
H. O. K IN G,
D~ivlision. A administrator.
April 16, 19334.
REPORT\ TO TH-E PRESIDENT
The White HTiouse.
SmR: This is a report of the Hearing on the Supplemental Ctode
of ]Fair Competition for the Wholesale M~illiner~y T'rade, conducted
in Room 3208, D~epartment of Ctommerce Buildinga, on March 22, 1934.
Th~e Supplemental Code, which is attached, was presented by a duly
qualified and authorized :t,1tsrpresntatie of the Trade, complying with
th~e statutory requirements, said to represent 87 per cent in number
and about 90 per cent in vo~lumelr of sales of the Trade: which could
be included in. this Supp~lemental Code.
According to statistics furnished by mIemlber1s of the Wholesale
MillineryT Trade, there are approximately 95 estab~lis~hmentns with
aggregate annual sales of $32.00r10,000. T'he Trade employs about
T'HuYrIcSIONS OF TH[E CODE
Since this Code is supplemental to the Code of Fair Competition
for th~e Wholesaling or Distr~ibuting Trade, it contains no labor
The provisions containinr supplemental definitions are considered
inclusive and acc~uratcl.
The Administrative provisions of this Supp~-lemnental Code estab-
lish a D~ivisional Code Authority which is fairly and adequately
representative of all the different e~lementi; in the TPradec.
Thre Tradel Practices proposed do nott appear to be in any way
objectionable. Th'le pr~ovision relating to the limitation of tlme in
which to return dlamagdc' merchandise is d~esigned to eliminated! the
most distressing evcil in the Tra:de today.
The Deputy Adcministrator~ in his final report to me on said Sup
plemental Code having found as herein set forth and onl the basis o
all the proceedings in this matter;
I: find that
(a) Said Supplemental Code is well dlesignedl to promote thne
policies and purposes of Title I of the National Industrial Rtecovery
Act, including removal of obstructions to the free flow of inter-
state and foreign commerce which tend to diminish the amount
thereof, and will provide for the greneral welfare by promoting
the organization of trade for the purpose of cooperative action
among trade groups, by inducing and maintaining united action
of labor and management under adequate governmental sanction
and supervision, by eliminatingr unfair comipettitive practices, by
promoting thie fullest possible, use of the present productive capac-
ity of industries, byr avoid~ing undue restric~tioln of p~rodction (ex-
cept as may be temporarily required), by incr~easinlg the consuumption
of industrial and agiricultural products through incr~easingr pur-
chasing powerr, by reducring and~ relievingr unemploymient by imc-
proving standards of labor, alnd by otherwise reha~bilitating industry.
(b) Said Trade noral.ly emnploys not more than 50),000 employ-
ees anld it is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the perItinent provisions of said Title of said Act, including
w-ithIout Emiltation Subsection (a) of Section 3, Subsection (a) o
Section 7 and Subsection (b) of Section 10 thlereof ; and tha~t t~he
applicant association is a trade association truly representative of
the aforesaid T1rade; and that said association impo~cses nlo inequitable
restrictions on admission to mlembership therein.
(d) The Supplemental Code is not designed to and will not per-
mit monopohies or mnonopolistic practices.
(e) The Supplemental Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to the approval
of this Supplemental Code.
1For these :reasons, the Supplemental Code has been approved.
]Hean~l S. JoHNSON,
Arms 1, 1934.
SU7PPLE]MEN1T A~L CODE OF FAIR COMPETITION FOR
THE WHOLESALE MILLINERY TIRAIDE
A DIVISION OF THE: WHOLESALING OR DISTRIBUTING: TRADE
To further effectuate the policies of Title I of the Nationa~l Indus-
trial Recovery Act, the following prov~\isio~ns are establli hedr as a
Supplemental Code of Fair Competition for the Wholesale Millineryr
Trade to the Code of Fair Competition for thle Wholesaling or D~is-
tr~ibulting T~rade, as pr"ovidled by Article VI, Section 1 (c) thereof,
which shall be c~onstruedcl as a part of and, in connection wiith the
said Code for the Wholesalingr or D~istribu~rting Tradle, andi both of
these. Codes shall be binding upon every3 Inemllberl of the W~holesale
ARTICLE II DEFINITIONS
SUTPPL.E.11EN'IINGr` ARTICLE II OF THIE GENERAL CODIE
WCholesaler or Dis~t~ribu-tor. 7The termn WTholesaler or Dis-
tributor ", as used herein, is derfined~~ to mean any individual, part-
nerl~ship' association, corporation, or other firm, or a definitely9
organized division thereof, deifinite~ly o~ganized~ to render, and re-
dering a general dlistrib~ution servicese which buys and miaintains at
his or its place of business, a stock of ladies', misses', and children's
trimmed and untrimmed hats, andl incidental merchandise pertaining
thereto which it distributes; and which through salesmen, a~dvertis-
ing, and/or sales promotion devices, sells to retailers, but which. does
not sell in significant amounts to ultimate con~sumlers.
The Trade.-The term the TPrade ", as used herein, is d-efined to
mean the business in which Wolesalers or "Distr~ibutors ", as
above defined are engaged.
Diviionl Cde Athoity-The term Divisional Code Author-
Dviity",as usedheein isk' defined to mean the Divisional Code
Authorityv for the Wholesale 1Millinery~ Trade, a division of the
Wholesaling or D3istributing Trade.
General Code.--The term '" General Code "' as used herein, is de-
fined to mean the Code of Fair Comlpetition for the Wholesaling or
AnuTCLE III--AIDM\INI;T TRATION
SIUPPLEMENTING ARTCL VI, SECTON 2 (E), OF THFE GENERAL CO)DE
SwrrToN. I. Dj~jivi/iona Code Aluthority.-
(a) There shall be created a D~ivisional Code Authority to coop-
erate with the Administrator in the admlinistration of the provisions
of this Supplemental Code.
(b) Such 'Divisional Clode Authority shall be composed of seven
("I) members, six of whom shall be :members of the Associated
Whiolsesa~le Distributors of Ladies' and Children's Hots, Inc., and
selected by the Board of D~irretors thereof, subject to ratification
by the members of that Association who hlave signed a letter of
Compliance and Assent to thiis Supplementaol Code and the General
Code, and further selected with. due regard for their residence in
the major markets of the Trade and one (1) membller shall be se-
lected in a mannr to be approved by thze Admninistrator to represent
those engaged in the Trade who are not mlembe~rs of the Associated
WCIholesale Distributors of Ladlies', Mlisses', and Children's ~Hats,
SEOTnox IIi. Powers anld Ducties.--The Divisional Code Authority
shall have the following powers in addition to those provided in t~he
(a) T'o organize, elect officers, hire employees, and per~form such
other acts as may be necessary for the proper adcministration of this
()To use such trade associations and other agenccies as it deems
proper for the carrying out of any of its activites provided for
herein, provided tha~t nothing herein shall relieve thle D~ivisional
Code A8uthorcity of its duties or responsibilities under this Supple-
mental Code, and that such trade associations and agencies shall at
all times be subject to and comply with the provisions hereof.
(c) To appoint a Trade Practice Committee which shall meet with
the Trade Practice: Comumittees appointed under suchl other codes as
may be! related to the Trade, except other ~Supplemental Codes to
the General Code, for thze purpose of formulating ]Fair Trade Prac-
tices to go-vern he relationships between production and distribution
employTers under this Supplemental Code and under such. others,
to the end that such FLiair Trade. Practices mlay be proposed to the
Administrator as an amendment to this Supplemental- Code and
such other codes.
(d) The successor to any mllember of the Divisional Code Authority
shall be nominated and elected in accordance with a plan devisedl
by the Divisional Code Authority, subject to the approval of the
Ad m inist ra tor.
SECTION III. Licrblity of the Code A uthority.--Nothing contained
in this Supplemental Code shall constitute the members of the
Divisional Code Authority partners for any purpose; nor shall any
member of the Div~isional Code Authority be liable in any manner
to anyone for any act of any other member, officer, agent., or em-
ployee of t~he Divisional Code AuthorityT, nor shall any member
of the Divisional Code Authority, exercising reasonable diligence
in the conduct of his duties hereunder, be liable to anyone for any
action or omission of any act under this Supplemental code, except
for his owfn misfeasance, or nonfeasance.
SECTION IVT. Approval or Disappr~oval by thie Adm~inistrator.-
If t~he Administrator shall determine that any action of the Divi-
sional Code Authority or any agent thereof may be unfair or
unjust or contrary to the public interest, the Admilnistrator may
require that such action be suspended to afford an opportunity for
UNIVERSITY OF FLORIDA
6 U 11 i ill| I lll| i II II I 11 II I llll 1 IIIlilll I
3 1262 08728 5564
invest igat ion of the mnerits of such action and further- cons~iderationl
by such Divisional Code Authority or agency pending final action
which shall not be e8Ffective unless the Administrator approves or
unless he shall fail to disapp~lrovec after thirty datys' notice to himn
of intention to proceed with such action in its original or mlodlified
ARTICLE l[V-TRADE PRACTICES
SUPPLE3MENTING AIRTICLE VILI OF THEE GENERAL CODE
SECTION 1. 877768S (im?~ 4Geauits((illf.-The maximum terms of cas~h
discount shall be seven (7) per cetnt, 10 days, e.o.mr.,:~l. a nd paymet
mnay be unticip~ated~ at the rate of six (6) per cenlt per annum, or
the legal rate governing the contract wvhichrever is lower. Cash sales
shall be gover~lned~ by the above provisions.
SECTION II. RetWF11 Of me)l'(.l/lllledi .-Merchahndise p~ur~chased and
shipped in good faith and in :l-cltlnecrane with the buyl~ers specifica-
tions may not be recturnedec for credit by any purchaser; provided,
however, that where goods are receiv~ed in an apparent damagedu
or imperfect condition or when they do not conform to the sp~ecifioca--
tions co~ntainedl in the purchase ordter, a maxsimumll of three (3) suc-
cessive bus~iness days after thie receipt of such merchandise will be
allowed for the return of same for credit, but provided further that
this section shall have no application to the, return of melcrchandise
in which the defective conditions cannot be discovered by an ordi-
nary inspection. Whenever a member of the Trad~e shall accept the
return of merchrandise after it has been in, the customler's possession
for more than the said three (d,3) day p~eriod, he shall report such
transaction, to the Divisio~nal CoeAuthority and certifyI that his
action was in accordance with this provision. The Divisional Clode
Authority mnay require anyr member of the T~rade to present proof
that such. returns were accepted in Igood faith, and in ac~cordanlce with
the provisions herein.
SECTION III. Consignment of 2Merchandise.--No merchandise shall
be shipped on a consignment basis.
SECTION IV. Subt7~erfugle.-It .shall be an unfair trade practice for
any member of the Trade to employ subterfuge, directly or indi-
rectly, to avoid or attempt to avoid the provisions of thirs Supple-
mental Code or the purposes and intent of the National Industrial
Recovery Act, which are to increase employment, provide better
wages, promote fair competitive methods, better business conditions,
and promote the public welfare.
ARTICLE V--EFFECTIVE DASTE(
This Supplemental Code shall become effective on the tenth day
after its approval by the Administrator.
Approved Code. No. 201--Supplement No. 5.
Registry No. 1625-5i9N.