NATIONAL RECOVERY ADMINISTRATION
SUPPLE MENTA RY
CODE OF FAIR~ COMPETITION
OR WHOLESALERS' TRADE
(A Division of the Wholesaling or Distributing Trade)
For sale by the Superintendent of Documents, W;ashington, D.C. Price 5 cents
Appnresed Code No. 201--Supplement No. 15
Registry No. 1612--05
AS APPROVED ON JULY 28, 1934
GOVERNMENT PRINTING OFFICE
This publication is for sale by. t~he Superintendent of D~ocumenrts, Government
Printing Office, Wiashington, D.C., and by district offices of the Bureau of
Foreign and D~omestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMWERCE
Atlanta, Ga.: 504 Post Offtice Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.,Y.: Chamber of Commrcce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 Nuorth Well Sftreet.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamober of Commerce Building.
Jackisonville, Fla.: Chamber of Commerce Building.
K~ansas City, 1Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Buildime.
New Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 CustJomhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 N~ew Post Offi~ce Building.
St. Louis, M/o.: 506 Olive Street.
San F'rancisco, Calif.: 310 Customhouse.
Battle, W~ash.: 809 Federal Office Building.
Approved Code No. 201--Supplement No. 15
SUPPLEMENTARY CODE OF FAIR COMPETITION
BUTTON JOBBERS' OR WHROLESALERS~'1' TRADE
As Approved on July 26, 1934
SUPPL.CMENTARY CODE OF FAIR COMPrETITTCIO FOR THIE BUTON
JOBBE1RSc OR VHOLESA\LERS' TRADE
A DIVISION OF THE WHIOLESALING OR DISTRIBTIrNG TRADE
An application having been duly made pursuant to and in full
comlpliance with the prov~isionrs of Title I of the N~ational Industrial
Recovery Act, approved June 16, 1933, for the approval of a Sup-
plemlental Code of Fair Competition for the B3utton Jobbers' or
Wholesalers' Trade tot~he Code of Fair Competition for the Whole-
salinga or D~istributing Trade, and hearings having been duly held
thereon andl the annexed report on said C~ode, c~ontaining findings
with respect thtereto, having been made and directed to the President:
NOWV, TH[EREFiORE, on. behalf of the President of the United
States, I, Hugh S. Johnson, Administrnator for Industrial Recovery,
pursuant t.o Authority vested in me by Executive Orders of the Pres-
ident, including Executive Order No. 6543-A, dated December 30,
193, ad oherise doherbyincorporate by reference said atnnexedl
report and do find thant said upeetlCd opisi l
respects with the pertinlent provisions and will promote the policy
and purposes of said Title of said Act; anrd do hereby order that said
Supp~lemental Code of Fair Com~petition be andX it is hereby approvedc,
subject~, however, to the following conditions:
()Thne Trade Practice Committee set up in Article III, Section
5()is thereby emnpow~ered to confer with the Code Authority for
the Mledium anld Low Priced Jewelry M~anu~facturingg Industry- or
any ag~rency designated by that Code Authority to arrive at some
mu~tual proposal to be sulbmitted to the A'dminis~.tcratr on. the subject
of maxiinnoni discounts.
(2) ~AnyT member of the Trade or of any other Trade or I~ndustry
or the customers of either may at any tie complain to the Supple-
mental Codfe Authority that any price constitutes unfair co~mpeti-
tronl as destrlc'tive price~ cftting, unperthngri small enterplrises or
tendcingr toward mlonopoly or the imlpalirmnent of Code wages andl
7 6 4T G'-829-150----84 (111
working conditions. The Supplemental Code Authority shall within
~five (5) dayrs afford an opportunity to the member of the Trade
complained of to answer such complaint and shall within fourteen
(14) days mlake a ruling or adj ustmient thereof. If such ruling is.
not concuurere in by either palrty? to the co~mplaint, all papers shall
be referred to the Researchh and Planniingr Divisiion of N.R.A.
~which shall render a report and recommendllatiIons thereon to the
Ad m inistIa t or.
Hvona S. JTOHNSON,
Adlmzriniftrtor for Indus~ltrial Rcovlery.
Approval recommecnded :
RlOBERT L. HousTON,
July~ I-6, 19J4.
REPORT TO TH~E PRESIDENT
The Wh'ite House.
Smr: This is a report of the Hearing on, thte Supplemrlentlt Code
of Fair Comlpetition for the Dutto~n Jobbers' or W7holesalers' Trade
conducted in Roomi D of the 'ashting~ton Hotel on. Mny 10, ~1934.
The Supplem~ental Code which is attached was plrr~lellte by a duly
qualified andl authorized rcpr~esenta~tive of the Tradre complying wcith~
the statutory requiremnents.
According to statistics furnished by members of the Button Job-
bers' or W\holesalers' Tradle. it is estimanted that in the M~en's Wear
Division there are approc-ximately tw\enrty-five (25) concerns with
aggregate annual sales of :M,500,00)0, and in the Womer~iln's W~ear Di~vi-
sion there are approximnately one hundred and thirty (130) concerns
with aggregate annual sales o~f $16,000,000. In thle Mlen's W~ert
Division approximately four hundred (400) persons are employedl
compared with three hundr~ed- (3(r0) in 1929. In the Womeln's W'ear
Division approximately sixteen hundred and fifty (1,650) persons
are nowr employed comnpared withl twselve! hundred and fifty (1,250)
PRO\?SIONrS OF THE CODE
Since this Code is supplemental to the Code of F~iair Competition
for the W~holesaling or Distributing Trade, it contains no labor
The provisions cont.aining supplemental definitions are considered
meclusive andl accurate.
The supplement, to thle Administrative provisions of the! General
Code establishes a Divisiona~l Cocde Authnority which is fairly and
adeqluately representative of all the different elements in the TLradle.
The Tradte Pr~ac~tices proposed are not considered in any way
obj ect ion b le.
The Deputy Adm-inistrato~r in his final report to me on said Sup-
plemnental C'ode having found as herein set forth and on the basisi of
all the proceedings in this matter;
I findt that
(a) Said Supplementn1 Code is well designed to promote. the,
policies and purposes of Title I of the National Indur~rial Reicover~y
Ac-t, inclludingr remloval of ob3Strul(fctinS to the free flow of int~erstatea
and- foreignl commllnei -ce whlic~h tend to d~iminish~ the amlount thereof,
andl wTill pr~ovides for the general weclfar~e by pr~omo~:ting' the organ~ni-
zation of trade for the ItiiPurpoe of coopler~ative action along tr~ado
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanction and supervision,
by elimni nati ng unlfa ir comp~etit ive practices, by promoting t~he fullest
po~ssale use of the present, prodluctive capacity of industries, by
avoidinlg undue restrictionr of production (ecsept as may be tempo-
rarily reqluired)-, by increasingb the consumption of industrial anid
agr cultural preqducts through incr~easingr purchasing power, by re-
dic~ing and relievingr unemployment, byF improving standards of
labor, and biy o-thecrwise rehabilitating industryf.Y
(b) Said Trade normally employs not moc-r~e than 50,000 employees
and it is -not cha~sified by moe as aplr-v major ~e in dustry.ct
(c) T h e S up le m nta C oe as a pp~ r o e co m lie in all res ect
with~ the pe~rtinent provisions of said Title of said Act, including
without himitation Subsectioni (a) of Section 3, Subsection (a) of
Section 7 and Subsectio~n (b) of Section 10 thereof; and that, t~he
upphicant asisociation is a trade association truly representative of
the aforesaid Trade; and that said association imposes no ineqlui-
table restrictions on admission to memblers~hip therein.
(d) T~he Supplemental Code is not designedj to and will not per-
mit monopolies or mlonopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate or oppress small enterprises and will not operate to discriminate
(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.
]For these reasons, the Supplemlental Code has been approved.
HU11GH S. JoHNSON,
JurnY 26, 1934. Amnsrtr
SUPPLEMIENTA~RY CODE OF FAIR COMfPET`ITION FOR
THE BUTTON JOBB3ERS' ORt WHOL;ESALERS' TRADE
A DIVISION OIF TH-E WHO1CLESALING: OR DIF'TIUDETING TRABDE
To effectunto the policies of Title I of the National Industrial
Recovcry Act, this Supplemental C'ode is established as a Code of
Fair Comrpet~tition for thre B~utton Jobbers' or W~holesalers' Trade
puirsuant to Article V'I, Section 1 (c) of the Generall Code of Fair
Competition for the W\holesazling~ or Dgisjtributfing Tra~de, approved
by tfhe President of the United Sttates on Janurlly 12, 1934. All
provisions of the said General C'ode which are not in conflict within
t~he provisions of thiis Suppl)~llemntal~ Code are hereby incorporated
by reference in this Supplemlental C'ode and madte part hereof. Such
provisions of the Gcneranl Codle together with th-e supplementing pro-
visions of this Codec are thte standards of fair competition for and
are binding upon every mlemb~er of said Button. Jobbers' or Whole-
SECTION 1. The term Trade ", as usedl herein, shall mean the
business of selling at wholesale to the following trades the following
articles purchased or secured from a manufacturer or other primary
(a) Buttons, buckles, slides, and ornaments used on ladiess, misses',
and children's apparel, made of various kinds of material to:
('1) Thle cutting-up trade, manufacturing ladies', misses', a~nd
(9) ]Retail D~epartment, dry goods, and trimming stores.
(3) Chain Stores.
(4)1 Wholesale Dr~y Goodls and notion jobb~ers and jobbers in this
(b) Buttons and small wear used on men's and boys' clothing to
the cultting-urp trade manufacturring such clothing and to tailor trim-
SCECTION 2. ~Thte term Wholesaler or "L Jobber as used herein
shalll include, but without limitation, any individual, association,
partnerhip corporation, or any other form of business enterprise
or a dlefinitely o rgn nized' division thereof, engaged in business in
this Tradle as it is defined in Section 1 hereof.
SECTION 3. Thce tern '" M~ember of the Trade as usezd herein, shall
mean any Whfolesaler engaged in the Trade as it is definled in Sec-
tions 1. andl 2 hereof.
SECTION 4. T~he term. Div~isional Code Authority ", as used herein,
shall mean t~he Divisionzal Code Authlority for the Button Jobjbers' or
Wholesalers' Trade, a division of the Whlolesaling or Distr~ibutingr
SECTONr 5. The term "L General Code "", as used herein, shall mean
the Code of Fair Comnpet~ition for the Wholesaling or Distributing
ARLITICLE III---ADM IN ISTRA1TION
SIPPLEMIENTING ARTICLE VI, O1F TH GENERAL CODE
SECTION 1. For the purposes of representation on the Divisional
Code Authlority and ashninistr~at.ion, the Button Jobbers' or W~hole-
sallirs' Trande shall be divided into twor div'iSionls as follows:
(a) W~omen's We~iar Division, embracing~ the Trade as defined in
Article II, Section 1, Subsection (a) hereo~f.
(b) Men's Wear Division, emlbraemng the Trade as dlefinedl in
Article II, Section 1, Subhsec~tion (b) hereof.
SEC'TION 2. The D~ivi~sionlal Code Authorityr for this Tradle shaUl
considt of sixteen (16) members of the Trad~e; nino (9) to be ap-
po:inlted by the Board of Directors of the Button Mlerchants' Asso-
ciation of Amnerica, Inc., as representing the Womelln's WVear Division;
five ()to be appoint~ed by the Board of Directorls of t~he Mlen's
WCear Button Jobbers' Association, Inlc., as rep~resetnt~ing: the Mlen's
WVear Division; and two (2) to be selected in a fai!r anner to be
approved by the A~dministrator from mnember~s of thle Tradle who
aire not members of either of said Assoc~iation~s, one (1) from the
Women's Wear Division and one (1) from th~e Mecn's WTear Division.
SECTION 3. (a) The Mlembers of the Div'isioall Codie A~uthority
appointed by the Button M~lerchants' Association of Amlerica, Inc.,
together with thne one member selected to represent t~he members of
the Women's Wear Division who are nrot members of the said
Association shall constitute. the control committee for the WTomen's
Wear Division of the Trade.
(b) It shall be the duty of this control committee to exercise the
functions of the? Divisional Code Ac~uthority nlecessary to secure the
proper administration of thne provisions ofU this Supplilmental Codeg
in the W~omren's W~ear Div9ision of the Trade.
(c) The members of the D~ivisional Code ~Authority appointed hv
the Mecn's W~ear Button Jobbers' Associat~ion, Inc. together with the
one member =select~ed to repDresent thie members of the ensWa
Division who are not members of the said As~rsociation shall consti-
tute the control committee: for the M~en's Wear Division of the Tr~ade.
(d) It shall be the duty of this control committee to exercise the
funcltiolns of the Divisional Code Authority necessary to secure the
proper ad m in i trat ion of the provisions of this Supp~lemnental Code
in the Mlen's W;Tear D~ivision of the Trade.
Srrj(ToN 4. The term~ns of office of members of the Divisional Codle
Auxthority and the metthod' o~f- slecting their successors, w~hethecr for
full new terms or for unexpired te~rm~s, shall be es~tablishled in the
by-laws of the Divisional Codle Author~ity.
SEc:'IoN 5. The Divisional Code Authority shanll h~ave thle fo~llow-
in8 duties and powers~i, in addlcition to those pres~cribedl in the Gecneral
C'ode. sub~ject to review by the Adlministrator:
(a) T~o appo":int a Tratde Practice Committee, whl~ich shanll mneet
with the Tradle Pr~ac~tice Commnittees app~ointedl undler other Codles of
Fair Comllpetition ecsrplt other Supp~~lemntall3 Codrs of Fa':ir Coimpeti-
tion to the G~eneral Coder, for the purposesa of formllulatigr Fair Trade
Practices to govern the relationships between production and dis-'
tribution employers under this Supplemental Co~de and under such
other Codes of Fair Compet~ition, to the end that such Fair Trade
Practices may b~e proposed to the Administrator as amendments to
this Supp~lemental Code and to such other Codes of Fair Competi-
(b) To organize, elect officers, hire employees, a~po~point agents,
and p~erformn such other acts as may be necessary orth~e proper
administration of this Supplemental Code anrd the General Code.
(c) To ad~opt by-laws and rules and regulations for its procedure.
(d) To use such trade associations and other agencies as it deemis
proper for the carrying out of any of its activities provided for
hecrein provided that nothing herein shall relieve the Divisional Code
Authority of its duties or responsibilities under this Supplemental
Code, and that such trade associations and agencies shall at all
times be subject to and comply with the provisions hereof.
(e) T'o obtain from members of the Trade, through a confidential
agency, such information and reports as are required for the admin-
istra-tion of the Code.
In addition to information required to be submitted to the General
Code A~uthority and to the Division~al Code Authority members of
the Trade subject to this Code shall furnish such statistical informa-
tion as the Admrinistrator may deem necessary for the purposes
r~ecited in Section 3 (a) d~f the Act, to such federal and state agencies
as he may designate; provided that nothing in this Code shall
relieve any member of the Trade of any existing obligations to fur-
nisht reports to any government agency.
No individual report shall be disclosed to any other member of
the Trade or any other party except to such other governmental
agencies as may be directed by th~e Aldministrator.
(f) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Trade in their relations withn each other
or with other trades, measures for industrial planning, and statbiliza-
t~ion of empoyment; and including modifications of this Supple-
mental Coewhich. shall become efective as part hereof upon ap-
pro\al by the Administrator after such notice and hearing as he may
SEC"ITON 6. Upon the request of the Divisional Code Authority, thae
Administrator may appoint an impartial person to make such. inr-
spection of the books and records of any member of the Trade as
may be necessary to ascertain whether or not any violation of this
Supplemental Code has been or is being committed.
SEC~TION 7. Nothing contained in t ~is Supplemental Code shall
constitute the members of the Divisional Code Authority partners
for anyT purpose nor shall any members of the Divisional Code Au-
thor~ity be liable in any mannnrr to anyone for any act of any other
me~mber, officer, agent, or employee of the D~ivisional Code Authority.
Nor shall any m~emberi of the D~ivisional Code Authority, exercisine~r
realsonab~le diligence: in the conduct of his duties hereunder, be liable
to anyone for any action or omission to act, under this Supplemental
Code, except for his own willful malfeasance or nonfeasance.
2 See paragraph. 2 (1) of order approvinr this Code.
SEC'YTON 8. If the Administrator shanll determine that any action of
the Divisional Code Authority or anyr agency thereof, may be un-
fair or unjust or contrary to the public interestt, the Adinunistrator
mny~ requiire that such action be suspendled to afford an opportunity
for in~vestigation of the merits of such'~ auction and for further con-
e!Jecraticln of such Divisiornal Cocde Authority or agency', pending
final netion, which shall notf be effe~ctive unless the Admninistrator
approvsc- o~r unless he shall fail to dlisapp~rove after th~irty days'
notice to him of intentionl to p~rcedc~c w~ithl suchl a~t~ion in its original
or modcilledt form.
SErTroX 9. (a) It: being found necessaryl in order to support. the
admninistrantion of this Supllplemental Cod~e and~ to- maintain thle
standlards of fair c~ompe~tition establirshed herleundler anid to effectuate
the policy of the Act. the D~ivisiona~l Coie Author~ity is authorized:
(1) To incur such' reasonable obligartio~ns as are necessary and
proper for the foregoing purposes, andl to meet such obligantions out
of funds which mnay be raised as hereinafter pirov\ided and which
shall be held in trust for the purposes of this Supplemlental Code.
(2) To submit to the Administrator for his ap~provadl, subject to
Euch notice and opportunity to be heard as he mlaydmnesar
(1) an itemized budget of its estimated expenses rtefogon
purposes, and (2) an equitable basis uporln which th~e funds neces-
sary to support such budget shall be contributed byv members of the
(3) After such budget and basis of contributions have been ap
p~roved by the Adm~inistrator, to determine and obtain equitable
contribute ion as above set forth by all members of the Trade and
to that end, if necessary, to institute legal proceedings t.herefor in its
(b) Each member of the TIrade shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Divisional Code
Authority, determmed as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the TCrade complyling with the Supplemental Code
and contributing to the expenses of its administration as herein-
above provn\ided, unless duly exePnited from makling suchI contribu-
tions, shanll be entitled to participate in the selection of members
of the Divisional Code Authority or to receive the benefits of any
of its vo~luntary activities or to mlake use of any embleml or insignia
of the. National Recoveryr Administrantion.
(c) TIhe D~ivisioinal Code A-uthor~ity shall1 neither incur nor pay
any obligaticonsi in excess of the aImount th~ereolf as esrtimat~ed in its
a~pproed~ budget, except upon appr,1oval~ of the Adm~inistrator;r and
no suibsequent budget shall contain anyV de~ficiency item for ex-
pend'.iturels mn excess of prior budget estulnates ecep~c1,t those wThich
the Adm~inri.s!~trar shall have so apprloved.
ARTIcLr; I7T H--\DEnr PRACTICE PnrROIsIOS
SUPP'IEMIENTING ART'ICLEC VII OF TH[E GENT.IL1L CODE
Semaxl- l 1. Prvnisio~ns applyingl to ti~rransctio~ns between members
o~f the Tr:olo and anyi~ of their customersr in boc.th th~e W\omien's: We'ar
andt Men~'s Wiear D~ivisions::
(a) BSeing on Co~nSignm~2ent.~- No merchandise shall be shipped
on memorandum, or on consignment for sale by any member of this
Trade; the terms memorandum and consignment to mean
that no option shall be given to return merchandise for exchange
or credit after delivery of such merchandise, except where the said
terms "memnorandum" and '"consignment" are hereafter other-
w~ise defined except that the Divisional Code Authority with the
apprvalof he dminstrtormaypermit shipments on consign-
mrent where special circumstances of h rd eur h rcie
(b) Sh~ipmen~ts.-A11l shipmllents of merchandise to customers shall
be made F.O.B. point of shipment, except shipments by members of
this Trade from. point to point within the metropolitan area of
trade distributing centers, except where it is hereafter otherwcpise
SECTION 2. Provisions applying to Women's Wear Divcision:
(a) Provisions applicable to transactions with the cutting-up trade
manufacturing ladies', misses', and children's apparel:
(1) Terms and Discounlt.--The maximum terms of credit to cus-
tomers of members of this division of the Trade shall be two per
cent (2%J) cash discount ten (10) days e.o.m. Payment may be an-
ticipated at the rate of six per cent (6%) per annum. No deferred
datings are permitted except that goods shipped after the twenty--
fourth (24th) day of anys month may be considered as shipped on
the first (1st) day of the following month.
(2) Rebactes.--The giving or distribution of merchandise gratis in
any quantity in the form. of samples; the absorption of transporta-
tion costs; the promise to accept and/or the acceptance of merchan-
dise for credit after the season; the allowance of discounts for adver-
tising or for payment for space ml newspapers, magazines, guides,
or directories on behalf of any customer to be used in promoting the
sahi" of merchandise to the consumer shall be deemed acts of unfair
competition and are prohibited, except that the furnrishingf of one
(1) specimen button, buckle, slide, or ornament of any one (1) color
to any one (1) customer; the absorption of transportation costs on
shipments by mlemlber~s of this division of the Trade from point to
point within the metropolitan area of trade distributing centers, and
the supplying of ad~vertising cuts and matrices shall, however, not
be included in, such prohibition.
(b) Provisions applicable to transactions with retail department,
dry' goods, and trimming stores:
(1) erms and D~iscou~nts.--The maximum terms of credit by memn-
bers of this subdivision of the T~rade to retail department, dry gToods,
and t~rimmningr stores shall be eight percent (8%r) cash discount, ten
(10) days e~o.m~. on regular goods aand three pret(% ahds
count, ten (10) days e.o.m. on pearl goods. ~Payment may be antici-
pated at the rate of six percent (6%) per annumn. No deferred dat-
Ings are permitted, except that goods shipped after the t-wenty-
fourth. (24th) day of any month may be considered as shipped on
the first (1st) day of the followingr month.
(2) Sellin~ on C~onsignment.----No mecrchandise shall be shipped on
mem~oralndum or on c~onsignmnent for sale by any member of t~hiis di~vi-
sion of the Tr~ade to retanil depa~r~tment., dry goods, and trimming
stores; the term memnorandumrl" and "LconSigrnmlent" to mean that
no option to, retturn mel~rchanndse for exchange or credit sihall be given
for a period greater than ten (10) days after delivery of the mer-
chandise except that the Divisional C'ode Authority, with the ap-
proval of the Administrator, may permit shipments on consignment
where special circumstances of the Trade require the practice.
(3) Robates.-The giving or distribution of merchandise gratis
in any quantity in the form of samples; the absorption of transpor-
tation costs; the promise to accept and/or the acceptance of mer-
chandise for credit after the season; the giving to resident offices
or group buying offlees of special consideration, secret rebates, or
advantages greater than the discount and terms provided in this
Code; the allowance of discounts for advertising or for payment for
spnee in newspapers, magazines, guides, or directories on behalf of
any customer to be used in promoting the sale of merchandise to the
consumer shall be deemed acts of unfair competition and are pro-
hibited, except that furnishing of one (1) specimen button, buckle,
slide, or ornament of any one (1) color to any one (1) customer;
the absorption of transportation costs on shipments by members of
this division of the Trade from point to point within the metropoli-
tan area of trade distributing centers, and the supplying of adver-
tising cuts and matrices shall, however, not be included in such
(c) Provisions applicable to transactions with chain stores:
(1) For the purposes of this Code, a chain store is defined as
one of a group of stores of the same ownership all of them selling
the same articles at the same standard price.
(2) Terms and Diseownt.-The maximum terms of credit by mem-
bers of this division of the Trade to chain stores on the sale of
buttons shall be two per cent (2%) cash discount, ten (10) days
e.o.m., F.O.B. point of shipment, and free delivery on shipments
by members of this division of the Trade from point to point within
the metropolitan area of trade distributing centers. Payment may
be anticipated at the rate of six per cent (6%) per annum.
(3) The maximum terms of credit by members of this division
of the Trade to chain stores on the sale of slides, buckles, and orna-
ments shall be two per cent (2%) cash discount, ten (10) days e.o.m.,
F.O.B. point of shipment, and free delivery on shipments by mem-
bers of this division of the Trade from point to point within the
metropolitan area of trade distributing centers; or net ten (10) days,
free delivery. Payment may be antleipated PA the rate of six per
cent (69) per annum.
(4) Shipinents.-All shipments of merchandise by members of this
division of the Trade to customers shall be as provided in Section 1
(b) of this Article, or as provided in subdivisions (2) and (3) of
(5) Rebate.<.-The giving or distribution of merchandise gratis in
any quantity in the form of samples; the absorption of transporta-
tion costs; the promise to accept and/or the acceptance of mer-
chandise for credit after the season; the allowance of discounts for
advertising or for- payment for space in newspapers, magnzines,
guides or directories on behalf of any customer to be used in pro-
3anting the sale of merchniuli e to the consumer shall be deemed nets
of unfair competition and are prohibited, except that the furnishing
of one (1) specimen button, buckle, slide, or ornament of any one
(1) color to any one (1) customer: the absorption of transportation
costs on shipments by members oil this division of the Trade from
point to point within the metropolitan area of trade distributn
centers, and the supplying of advertising cuts and matrices sal
however, not be included in such prohibitionr.
(d) Pr~ovsions applicable to transactions with wholesale, dry
goods. and notion jobbers, and jobbers in this Trade:
(1) Terms anrd Discounts.--The maximum terms of credit by
mem bers of thlis division of the Trade to jobber~s shall be two per
cent (2%r) cash discount, ten (10) days, sixty (60) days extra. Pay-
me~nt may be anticipated at the rate of six per cent (6%0) per annum.
(2) Bamles,yl Sample Cards, Electros, and Outs.--The charge for
samples for buttons actually used in se-lling by the jobbecrs shall be
at full selling prices; sample cardsl~ and labor on same shall be fur-
nished to jobbers free of charge.
SECTION 3. Provisions applying to transactions with the cutting-
up trade manufacturing men's and boys' clothing and to transactions
with tailor trimming jobbers in. the Men's Wear Division;
(a) Terms and Disco~unt.--The maximum terms of credit to cus-
tomer~s of members of this Trade shall be net ten1 (10) days, e~o.m.
Paym13ent may be anlticipa~ted at the rate of six per clent (Y6%) per
annum. No deferred dating are permitted, except that goods
shipped after the twenty-fourth (24th) day of any month may be
considered as shipped on the first (1st) day of the following month.
(b) Rebates.--The giving or distribution of merchandise gratis
inayquantity in the form of samples; the absorption of trans-
merchandise for credit after thirty (30) days from date of delivery
thereof to the customers* the allowance of discounts for advetrtisin~r
or for payment for space in newspapers, magazines, guides, or di-
rectories on behalf of any- customer to be used inl promoting the
sale of merchandise to the consumer are prohibited, except that
thre furnishing of one (1) specimen but ton or one (1) sample of
small wear of any one (1) color to anly one (1) customer; the ab-
sorption of transportation costs on shipments by members of this
Trade from point to point within the metropolitan area of trade
distributing centers and the supplying of advertising cuts and mat-
rices shall, however, not be inc.lllued; in. such proc.hib~ition.
ART~F'ICLE V---COSTS AND ]PRICE CUT;TING;
SECTION 1. The standards of fair complletitionl for the Trade with
reference to pricing practices are declared to be as follows:
(a) WilrlfullyT destructive price cutting is an unfair method of
comlpettiton and is forbidden.
(b) When no declared emergcI~rncy exists as to any given product,
there is to be no fixed minimum basis for pr1ices. It is intendedr that
Eoun d~ cost el ti rna~~t in m ethods should be Ilsedc andIC that can .iderationiI
shou~ldl be given to costs in the! cdetermIrilnation of pricing policies.
(c) W~ihen an emrgen(.';llcy\ exists as to any givern produc-t, sale below
t~he started minimum price of such product, in violation of Section 2
hereof, is for~bidden.
4 See paragraph 2 (2) of order approving this Code.
SECTION i B.stEtin EfRfeM PToz~zakfLon--- & If the Acliinistrator,
aftr ivesigaion shllat any time find both (1) that an emer-
gency has arisen within the Trade adversely affecting small enter-
prises or wav~es or labor conditions which tend to defeat the pur-
poses of thle Act; and (2) that thae det~erminattion of the stated mini-
Inlum price for a sptc~ified rdc ihnte rd o iie
period is nece~ssry to mitig c ili t~eTaefr iie~ate the conditions conistitutinga such
emc~.rgncy andc to efc~l'ctuaite the purpl-oss of thle AcSt, the; Divisional
Cod~e A~uthor~ity' may cause an inupartial ag enev\ to inlvestigiate costs
and to reconunend:~ to the Adnunistratr tor a d~etermninatio nu of the
Etatedr ruininuanl price of the produ~rct aff~clted by\ t~he emergency
andi thereupon the Admoinistrator may prcteed to dleterminie such
started minimum price.
(b) Whl~en the Admlinistatcrao shall have~ determined- such stated
minimum~ price for a specified product for a staltedl period, which
price shall be r~easonably~ calculated to mitigate the co.nditiolns of such
cemt-ergency and to effectuate the purposes of the Naltiolnal Industrial
Recovery Act, he shall pubishl such price. There fter. during such
r-tated periodt, no member of the Trade shall sell such sp~lecifie~d prod-
ucts at a net realizedl price below~ said .rtatedl mlinlimlum price and
any such sale shall be deemed lestrulctive price cuttingr. Fr~om timne
to timle, the Divcisional Code Au~lthorit~y may recomnunnd review or
reconsid eration or the Adminlisltrator may cause anly determinations
hereunlder to be reviewecd or rec~onsider~ed and appropriate action
SECTIONr 3. C088 find~ing.-Thr~e Divisional Code Authority shall
enluse to be formulated mleth~ods of cost finding and accounting capa-
b-le of use by all members of the T'rade and shall submit such meth-
ods to the Administrator for review. If approved by the Adminis-
trator, full information concerning such methods shl~~l be made
available to all nwmberlt~1s of the Trade. Thereafter, each member of
the Trade shall utilize such methods to the exrte~nt found practicable.
Nothing herein contained shall be~ const~rued to permit the Div-isional
Code Authority, any agent thereof, or any member of the Trade to
suggest uniform additions, percentages or differentials or other uni-
form. items of cost wh]ich are dcs~ignedl to bring about arbitrary umi-
formity- of costs or pric~es.
A~:lrcticxt VI-PowcanL or PRESIDENT TO> JicODIF
This Suxpplemental Code and all the pro~visions ther~eof are ex-
pressly' mader~ subject to the right of the Presidecnt in accordance with
thne provl\isionr s of the Sub-section (b) of Section 10j of the Act, fromn
timle to time to camel~:~ or modify anly border, approval, license, rule or
regula;tionl issuedl under~ Title I of said Act.
A wrr CuL: VII---E]FFCTIVE DATE
This Supplemcntnl Code sha~ll become effc~tive onl the 10th day
after its apin-ova;l by the Aidmnirlstrator.
Apprrolvc d Code No~. 201--Sullwlllement No. 15.
Registry No,. 3012'-UG.
UNIVERSITY OF FLORIDA 1:
3 1262 08851 80688;,..