UNIV. Of FL UBI.
For sale by the Superintendent of Documents. W~ashington, D.C. - Price 5 cents
]Registry No. 910--01
Approvedl Code No. 201--Supplement No. 9
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON M1AY 17, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
LEATHER AND SHOE FINDINGS
(A Division of the Wholesaling or Distributing Trade)
This publication is for sale by the Supetrinfondentc~n of D~ocuments, Governmesnt
Pr'inting O~lther~. W:1-bington.n D.C., and by district coftlies of thle 14ureau of
Fore~tign andi Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 5i04 Pos~t Office B~uiblinlg.
Dirminghain.m Alal.: 257 F'ederal Buildlin~.
Boston, Malrss.: 1b.11 Customblouse'.
Bluffatlo, NC.Y.: Chamber of Commerce TBuildingS.
Charleston, S.C.: Chambllter of Commerce B~uildling.
Chicag~o, Ill.: Suite 17i06, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Cl;nlutmber of Commer~ce Buildlin~.
Detroit, Mich.: 80r1 Fiirst National Bank; Buildling.
Houston, Tex.: ('hamber~ll oft Commerce lBuibling~.
Indinnapolis, Ind.; Chambluler of Commuerce B~uib~ling.
Jacksonville, F'la.: Chamber of Commrere B~uibling~.
Kansus City, JIo,.: 1028 Balltimore Avenue.
L~os Angeles, Calif.:- 1163 South Broadwvay.
Louisville, K~y.: 408 Federatll I:uilding.
Men'lllhis, Tenn. : 229 Fiederal Buib~linlg.
Mlinnulll'ollis. Mlinn.: 1213 Federl Ruildine~.
New Orltans. ~La.: Rtoom 225-A,. Customhouse.
New\\ Yorkr, N.Y.: 734 Customlhouse.
Nor~folk, Va.: 400r~ Etast Plume Street.
Phlilliulrellhinl. Pau.: 4122 Comnmercial Tr~ust B`uildling.
Pitt-bulrgh1. Pa.: Chamber ofl Commerce rSulildling.
Portland, Oregr.: 21~5 N~ew Post Office Building.
St. Louis, Mo1.: 500~ Olive Street.
SanI Frlancisco, Calif.: 310 Customhouse.
So;ttle, Walsh.:- 800 Federail Offic Bu~libling~r.
Approved Code No. 201--Suppleemen No. 9
SUPIPLEM1ENTARY COD)E: OF ]FAIR COMPETITION
LEATHIEIR AND SHOE FI[NDI)NGS TfRADE
As Approved onl May 17, 1934
SUTPPLEM6ENTARY CODE OF FAIR COMPETITION FOR THIE LEA~TH ER ANCD
SHIOE, FINDINGS TR ADE
A DIV'ISIOIN OF TH-E WHOILESA.ING OR DI4IITIBU TING TRADE
An application having been duly made pulrsonut1f to and in full
complianee with the provisions of Title I of the Nationlal I~ndustrial
Recovery Act, approved Juxne 16, 1933, for approval of a Supplemnen-
tal Code of Fair Competition for the Letnth~er and Shoe Fiindings
Trade to the ('ode of Fair Competition for the WhTT~olesaling or Dis-
tributino Trade, and hearings having been duly held thereon and
the annexed report on said Code, containing findings with respect
thereto, having been made and directed to the President:
NOWV, TH~EREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, ,Administrator for Industrial Rieco~very,
pursuant to authority vested in. me by Execlutive Orders of the Presi-
dent, including Excecuti-ve Order No. 6543-A, dated Decemnber 30,
1933, and ot~herwise; do hereby incorporate by reference said annexed
report and do find that said Supplemental Code complies in all
respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that
said Supplemnenta~l Code of Fair Competition be and it is hereby
HJUsn- S. Jonsh~ion,
Adm~li inl str~ator for Ind~ustrial Recovery.
H. O. KINs,
Divuision Admln ist rator.
M~ay 17, 1934.
REPORT TCO THE3E PRESIDENT
The Whkite House.
SmR: This is: a report of the Hear~ing on the Sulpplemental Codle
of Fair Com~pettition for the Leathner and Shoe Findc~ings Tr'Iade, a
division of the Whtaclesalirw~ or Distriburting~ Tradec, conducted inr
Room 2062, Depa rtmen1c I1t. of Cc nunl~erc Build~ing, on Fec-bruar~y 12,
1!I4. The Suppleme~tnt;l Code which is atta~ched~t wasi prescntedl by
duly qua~lifiedl and authoriized reprcsellntatives of thle Triade, ~omlplyinlg
with the staturtory I requirements
The Censusl of Wholesale D>isrtribution does not Separa~tely classify
this Tlrade. According to what appear~' to be carefully- anld intelli-
gently compiled statistics furnished by memllbers~ of the TPrade there
are at thne present time approxlimately- 854 concerns engagedl in this
business. In 1929 there w~ere approximately: 1,100 concerns so
eng~agSed. Total annual sales in thel Trade inr 1'309 were about
$31~r100,00000 and employees were approximately 11,000 in number.
On the basis of 11032 figures the Trade represented that business hlad
der.lrctld to about $lzC,120,00000 while the number of emlployees had
fallen to ab~oult 9,000 in 19:33.
PROVJ\ISIONS OF THE SUPPLEMENTAL CODE
Since this Code is Supoplemenntal to thle Code of ]Fair Competition
for the WT7holesaling or D~istr~ibutinlg Trade, it conltainss no labor
provisions. The~ p~rorvisions containing suplplemnlltarl definitionls are!
inclusive and accurate.
The supp~liement to the administrative pr'oviSionsl of the General
Code estab.lishles a Divisional Code Authority which is fairly and
aquafcl~tely represencrtative of all the members of the Trade. The
methodr~c pr~ovided for the election of the members of the Divisionial
Coloi( Authlority adqclluate~ly protects those membersc1~ of the TIrad~e
which are! n-of members of the Atssocin~ionic~.
Thne TIra;de 3Prnc~tie rules containers in this Suplem,' mental Cod~e
are not in any r=*-pre'ct ob~ject.ionablef( a-nd. are de~signedc l to promn~ote fair
competition in. the Trm~lle.
The~ Depullty Athlnlini.-t ra~tor in his lirnal Irepor~t to me on said Sup-
p~lemnental ("odie haingii foundlc as here'in 5se for'fth andl on the basis
of all the I,p~lrocedins in. this miatter;
I: find tha~t:
poliicies and purposes' of Title I of the- Natfionall Indusltrlall Recove\ry
Act, including removal of obstructions to the free fflowi of inlterstate
andl' foreign, conulnerce which tend to diminish the amnount thereof,
and will provide for the general welfare by promoting the organiza-
tion of trade'l for the purpose of coopera~tive action among the trade
grroup~, by inducinga and mainint~nilgr united action of labor and
malnagement under adequatenf grovernm~ental sanction and sup~erv\ision,
by elimlinatling unfair competitive practices, by promoting the full-
est possible use of the presen-t.l~t productive capacity of indu~lstr~ies. by
avoiding undue restr~iction of production (except as may be tempo-
rarily required), by increasing the consumption of indusrltrial and
agr~icultura~l products through increasing purchasing power, by re-
du~c~ingi and relievmng unemploymentt, by improving standards of
Inbor, and by otherwni-e rehabl:ilitating~, industry.
(b) Said Trade normally employs not more than 50,000 employees
and is not classified by me as a major industry.
(c) The Supplementalt l Code as approved complies in all respects
writhl the pertinenlt. provisions of said Title of said Act, including
withlout limitation Subslctio~n (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof ; and that the
a7pplicant, associntio~n is a trade association truly repre1senntatie of
the afor~esaid Trade; and that said ass~cc:ia~tio. n imposes no inequitable
restr~ictionsl on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic pranctices~.
(e) The Supplemental Code is not designed to and will not elim-
inn te or oppress small ente rpri-.es and will not operate to discriminate
(f) T~hose engagedl in other stepis of the economic process have not
been ep~r~ived ohf the right to be heard prior to the approval of this
For these reasons the Supplemlental Code hans been approved.
HJUanI S. Jonx~ison,
lif 17, 1934.
SUPPLEMX/ENTARY CODE OF FAIR COMPETITIONil FOR
THIE: LEATHER ANID SHOE ]FINDINISGS TIRADIE
A DIVsISON OF TH WHOLESALING OR D)ISTRIB3UTIN TRADE
To further effectuate the policies of Title I of the National Indus-
trial Recovery Act, the following provisions are established as a
Supplemental Code of Fair Compel~tition for the L~eather and Shoe
F2iindingfs Trade to the Code of Fair Competition for the Wholesal-
ing or D~istributing Trade, as provided by Article VI[, Section 1 c
thereof, which shall be construed as a part of and in connection wth
the said Code for thne Who~lesaling or Dist ribut ing Tradle, nd bothi of
these Codes shall be binding upon every mermber of the Leather and
Shoe F~tindingas Trade.
SUPPLEM1ENTING ARTICLE II OF TH-E GENERAL CODE
1. Tlhe term. Trade ", as used ]herein, shall mean the sale or dis-
tribution of leather and shoe findings, shoe-store supplies, and/or
shoe-repairing machinery to the shoe repairer or the retail tr~ade.
2. The term "L memblier of the T'rade ", as used herein, shall maean
anly person or firml, or definitely or~ganized division thereof, engaged
in the Trade, as above defined.
3. The term owner-operator ", as used hlerein, shall mean any
member of the Trade wuho employs no one, but who ;personally per-
forms the function of the Trade.
4. The term Divisional Code Aurthority ", as ulsed herein, shall
meanr the D~iviional Codte Authority for the Len~ther and Shoe F'ind-
ings Tradel, a dlivision of the Whont~~le-aln or Distr~ibuting~ Trade.
SUJPPLEMENING?`.U ARTICLE VI, SECTION 2 (E) AND SE(.TION OF THIE
1. Organiiiz-ation andi Conistit ution.-(a) The D~i isional Code Au-
thority shall consist of sevenlteen (17) membeilll~~Irs, naely, ten (10)
to be, selected by the Cha;irmanla and Prscidentr l of the NJational Leather
anld rShoe Fliinders Asswcint ion from the membersI'I.- of SuIch Associatijon1;
onnc (1) from achc of thec five (5) follm,\ill-ing ~cscialtions: Newi Eng-
and~ Shoe F~illl~r~s Ass;~oc~iationl, Me~tr~opo~itan TMa~ther~ and F~indings
FEindel~rs BZoard of Tradel~ each suchl A.s\sciationl to select its candi-
date by a nominating committee, appointed by its Association, which
nominee shall be con~firmed by a mlnjority vote of the mnemlbers of its
Association;" and two (2) to be selected by members of the Trade
who are not members of any Association, in accordatncct with a method
approved by the Admninistrato~r.
2. Porers anld Duties.-T-Phe Divisional Code Authority shall have
the followoPingo powers in addition to those provided in the General
(a) Clost Pr'otction..-u-Subect to the approval of the ALdmfinistra-
tor, to cause to be formu~latedl an accoun~lting sy~steml and. methods
of cost findline and/or estimanting, e~nplea~t of use by all members of
the Trade. After such Esyteml and methodscl have been formnulalted,
full details concerning them shall be madn~e available to all memberl~'~s.
Thlereafter, all members shlln1 determine and/or estimate costs in
accordance with the principles of suceh methods.
(b) National Recovery Admin-2?istration Iniigi~nia.-T~o coopl~erate
with the Admlinistrator in regulating thne use of any National Re-
cov-ery A~dm inist ration i nsigia i solely byy those m~-embers of the Tirade
who are complying ~with thins Supp~lementnl Code.
(c) Reg;rional Comnmittees.~l~-To sctablish Regional Commnittees inl
those regions estalblish~ed byT it and to delegate such of its powe-tr to
each of such Regaional Committe-es as may be necessary for the proper
administration of this Code; provided that nlothing herein shall be
construed to relieve the Divisional Code' Authority of any of its
responsibilities as such.
(1) Each Regional Collnnitttee mnay recommend to the Div~isionll~
Code Authority uniform hours (not less than 50 hours per week)
for the opening and closing of th~e stores of meml~bers of the Trade
for its Region and the D~ivisiolnal Code Authority may, subject to
thle approval of the Admlinistrator, establish such uniform hours for
opening and closing in such r~egiolns; provided that no~thling her~ein
shall be construled to allow members of the Trade in anly r'eg~ion to
kieep their stores open for longer than seventy (70O) hours inl any
(d) Trade Practice Committ~ee.--To appoint a Tradle Practiee
Committee which shall meet with the T~rade Practice Committees
appointed under such. other ecds as mllay- be related to the Trade
(except other Supplemlental Codes to the WCholesalinga or Di~stribut-
ing Trade) for the purpose of formlulatingr fair trade prancties to
govern the relationships between production and distribution em-
ployers undler thnis Sulpplemntant l Code and uindler such others, to
the end that such fair trade practices may be propos-ed to the At~dmin-
istrantor as amendments to this Supplemiental Code and such other
(e) Organiz-ation.--To organize, elect officers and perIform~ any
other acts necessary for thae proper administration of this Supple-
3. Scope.-I]f the Administrator shall determine that anly action
of the Divisional Code ~Authiority or of any Regional Commnit~tee
mary be unfair, unjust or contrary to the public interest, the Admin-
istrator may require that such action be suspended to afford an
opportunity for investigation of the merits of such action and fur-
ther consideration by such Divisional Code Authority or Regional
Committee, pending final action which shall not be effective unless
the Administrator appr~loves, or unless he shall fail to dlisapprove
after thirty (30) days notice to him of an intention to proceed with
such action in its original or modified formn.
4. Liabiity.--Nothing contained in this Suppleme~ntal Code shall
constitute thne members of thne D~ivisional Code AuthorityT partners
for any purpose. Nor shall. anly member of the Divisional Code
Authority be liable in any manner to any one for any act of any
other member, officer, agent or employee of the D~ivisional Code
Authority. Nor shall any mremnber of the Divisional Codle Authority,
exer~cising~ :Ic;ireasonale dilignc~lce in the conduct of his duties hlereunder,
be liable to any one for anyr act or omission to act ulnder th~is Supple-
menta~l Code, except for his owcn willful misfeasance or non-feasanlce.
AiRTICL;E IV-UNFBR z TRADE PRACTCES
SUPPLLC.1I 1N tING ARTICLE VII OF THE GENERAL C'IDLE
The followping are hereby declared to be unfair tradec practices,
and it shall be a violation. of this Supp!lenu-nt~al Code~c for any mnem-
ber of the Trade:
1. H~ow~s of Bcs~ine~ss.--To kreep their places of bus~line~ss open", or
engagne in the Trade, more than six (6) days in any week or onl
legal or public hloli~days, -which, whent'I one falls on whlat would
oth~erwnise be an onllinarlly worlkingb day, shall be3 cornsiderdc~ as par~t
of thle sixr (6) days, or open in exvsl- of seventy (70) hours
inl any week; provided thlat nothing herein shall be construed -to
permit violation of any fedleral, state or local ltaw. Thesle prov'isions
shall also apply to owner-operators.
2. Sales besloto lost.--To sell or off~r for sale any pr1odluct at a
price less than r.tabl~lishe~ by the c~ost-findcing~ and/lor estinatinlg
rsyste~rn pr)ovidedT by Ai"rticle 1III, Section 2, Paragraph (a); provided,
however, t~hat bonna fidle sales for the pm-lpose of closingr out discont-
tinued,, obsolete, or distressed merchandise many be madlle uplonl such
terms and conditions as mnay be necess~ary~ to effecct their sale. Full
detail.- of such sales including the amount of such nlrircivbandis on
handle and the date of its purchase must be reported~r to the Divi-
sionllt Code Aut~hority before the date of such sale. Thne Divisionllu
Cod~e Authority mnay condntlll such~ inves~t~igat-ion s as mtay be necces-
sary to dleterminle if such sales are being;, used~ to decfeat the purp'loses
of this Section, the bu~trde of pr~loving good~r faith to lat onl thelr ~rmember
of the Tradetl
3. Terml~s of Sale.-To sell or give be~tterl termsl1 than the folrlowing:
FST discounlt for paymen('lt on or before 10Oth of~ following~C mo~nlth or
in 30 Jays" from11 date of invoice; due net following da~y., No dating
4i. S"7lde~frfuge. (a) TIo enter into anl alI;rlrangemen rt within a mlanu-
fac~turer~ or tanlner where1'by a member of the Tradelc lendf s hlis namle
to a tralnsue~tionl as a slllbterfure. to conceal wha~t is inl ralityr a direct
sale between~l marnulfact ureI anod retailer nodl/or blhoC repa~lirer.
(b) T'o empllloy subterfuge, directly or indlirc~ltly, to, avoid or
attempt to avo~il the provisions of this Codell or~ t~ho ipolp~se~s ad
inrtenlt of the Naltionlat l ndustrial Riecove~ry Ac~t, whi~i~h, are to inlcreaLse
employment, provide better wages, promote fair competitive methods,
better business conditions, and promote the public wBelfare.
5. R~,ordiing Sal~es.-To fail to record every sale by invoice, bill
or sales slip, or in somle other forml which will show a complete
record of the transactions..
6. Display of lIw.signiai..-To display h ainlRcvr d
ministrationl insignia when not entitledto ,Gndisp~aZe~ainly same.oey
ARTIcLE V-EECTIVE DATE
This Code shall bpcomlle elffective. on the tenth day after its apl
proval by the Administrator.
Approved Code No. 20;1--Supplement No. 9.
Registry No. 910--01.
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