Approved Code No. 201--Supplement No. 3 Registry No. 409--1--0
NATIONAL RECOVERY ADM1INISTRATION
SUPPLE ME NTAR~Y
CODE OF FAIR COMPETITION
AND OFFICE OUTFITTING
(A Division of the Wholesaling or Distributing Trade)
AS APPROVED ON MARCH 18, 1984
UNIVJ. O:F~ Pl la.
U.S. DEPO91'TO IY
lor sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
This publication is for salj by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF TLHE: DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post O~ffice Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mlass.: 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Bluilding.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Oh-io: Chamber of Commerce.
Dallas, Tex.: Chambeh~r of Commerce Building.
D~etroit, M ich.: 801 First National Bank Building.
H~ouston, Tex.: Chamber of Commerce Building.
Indiatnapolis, Ind.: Chamber of Commerce Building.
Jacksonville, F'la.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
M~inneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
Ne w York, N. Y.: 734 Customhouse.
Nor~folk, Vta.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
:Pittsburgh, Pa.: Chamber of Commaerce Building.
Portland, Oreg.: 215 New Post O~ffice Building.
St. Lou~is, Mlo.: 506 Olive Street.
San Franc~iso, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federatl Offce Building.
Approved Code No. 201--Supplement No. 8
SUPPLEMENTIAR'Y CODE OF FAIR COMPETITION
COMM~lrERCIAL STATI[ONERYT AND OFFICE
As Approved onr March 16, 1934
SUPPLEMIENTARY CODE OF FAISIR COMPETITION FOR THIE COMMCERCIAL;
STATIONERY A~ND OFFICE OUrrrrINwO TRADE
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
Ant application having been duly made pursuant to and in full
compliance with the? provisions of Title I[ of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Commaercial Stationery anld
Office Outfitting Trade to the Code of Fair Competition for the
Whrolesaling or D~istributing Trade,. and1C he~arings having been duly
held thereon and the annexed report on said Code, containing findI-
ings with respect thereto, having been made and directed to thre
NlrOW~ THEREFORE, onl behalf of the President of the United
States, 2, H-ugh 8. Johnson, Administrator for Industrial Recovegry,
pursuant to authority vested in rne byEeuieOeroftePei
den, icluingExeutie OderNo.6543-A, dated December 30,
1933, and otherwise, do hereby incorporate by reference said annexred
report and do find that said Supplemnental Code complies in all re-
spects wih the pertinent pr-ovisions and will promote the policy
and purposes of said title of said Act; and do hereby order that
said Supplemental Code of Fair Comrpetition be and it is hereby
HUan~ S. JoHNson,
Administrator for Intdustrial Reco~very.
Approval recommended :
A. D. WCHITESIDE,
Dtrivjiion Admlinistrato r.
March 16, _193!.
REPORT TO TH'i-E PREESIDENT
Th~e WhF e Ht house.
SmR: This is a report of the Hearingr on the Supplemental Code
of Fair Comlpetition1 for the Commercial StationeryS and Office Out-
fztting Trade, a division of the WhV~olesaling or Distributingo Tr~ade,
conducted in. Roomu 2069. Commerce Building, on FebLruary 9, 1934.
The Supplem~ental C';dd which is arttnc~hedl was presented by duly
qualified a~nd authorized repl~resntatives of the Trade, omplylring
with the statutory crequiremel~~ nts said to represent about 75 percent
in number and about 80 percent in volume of sales of the Trade
which could be includedlc uncferI this Supplemnental Code.
Thet Cen ~us of Wholesale Distribution does not separately classify
this Trade. Arccordcing to what appear11 to be carefully and inltelli-
gently. compliledl statistics furils.hedl by MemrlbersL of the Trade there
are at the pr'ZEi'et time approximately 1,700 concerns engaged in
this business. In 1!)L'0 there -were approxsimately 2,000 concerns so
enF;aged. Total annual -ale in the Trade in 1929 were about $~168,-
00U0.00 and employees wre~re approximately 21,000 in number. In
19r33 the sales hlad declined to abo-ut $100,000,000 whP~ile the number
of emllploytee hadi fallen to about 15,300.
PROVISIONSS OF THE SUPPLEMENTAL CODE
Since this Code is supplemental to the Code of Fair Competition
for the W~holesaling or Distributing Trade, it contains no labor pro-
visicons. Thec provi,-ions containing supp~lemlenltal dlefnitions ar~e
inclusive and accurate.
The supplemernt to the admlinistr~ative provisions of the General
Code establishes a Div-isional Code Aulthority which is fairly and
adeqcualtely repr~esenltativ\ e of all the different. elemeltnts in the Trade.
Trhe Constitlt~ionl and 1Bylaw-s of the Nattional Stationers Association
shortly wiill be am~endedcc so as to relmove~ all inequitable restrictions
on I nebbecr~l rship. Thle m~etho~d provided for the election of the memu-
bers of t~he D~i~vsional Code Authority adequlrately protects those
Membillers of the Trade which are not members of the ALssociation.
The Trade Ptrac~tice rules contained in this Supplnemental Code are
not in any res~pert objectiolnable and are designed to promote fair
competition in the Trade.
The DIeputy Admiiniatrator .in his final report to me on said Sup-
plremelntat Code having found as herein set forth and on the basis of
all the pr~o~cedings in this matter;
I find that
(a) Said Supplemental Code is well designed to promote the poli-
cies and purposes of Title I of the National Industrial Recovery
Act;, including removal of obstructions to the free flowc of interstate
and foreign commerce which tend to diminish the amount thereof,
and will provPide for the general welfare by promoting the organiza-
tion of trade for the purpose of cooperatives action among the trade
groups, by inducing and mnainltaining united action of labor and
management under adequate governmental sanction and supervision,
by eliminating unfair competitive practices, by promoting the full-
est possible use of the present. productive capacity of industries,
by avoidinlg undue restriction of production. (except as may be temI-
poratrily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b>) Said Trade normally employs not more than 50,000 employees
and is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
wlith the pertment provisions of said T'itle of said Act, include
without limitation Subsection (a) of Section 3, Subsection (a)o
Se~ctionl 7, and Subsection (b) of Section 10 thereof; and that the
applicant association is a trade association truly representative of
the -aforesaid Trade; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Supple~mental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate or oppress small enterprises and ~will not operate to discrimi-
nate against themn.
(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 Supplemental Code has been approved.
HUGH S. JOHNSON,
M~BnI- 16, 1984.
SUPPLEMhiENTAIRY CODE OF` FAIR COMPETITION FOR
THIE COMMI\ERCIA STAT~ICIONERY AND OIFFEICE OUT-
Ah DIV-ISIION OF THE WHOLESALING OR DISTRIBUTIN~rG TRADE
To furter eiftctulate t~he policies of TitlselI of the National Indus-
trial Recovery Act the following provisions are established as a
Supplemental Code of Fair Competition for the Commercial Sta-
tionery and Office Outfittingr Trade (which Tr1adle has heretofore,
by an order of thae Administ~rator, been made a Division of the
.Wh~olesatlinga or Distributing Trade) to the Code of FEair Comlpetition
for such Wholesaling or Distributing Trade, as provided by Article
VIl, Section 1 (c) thereof, and shall be considered a part of and in
connection with such W~holesalinga or Distribut~ingi Code, and both
such codes shall be binding upon every member of such Commercial
ttio~ne~rry arnd Office Ou~tfittinr Trade.
Y""'~"-'J Annexx- II-- Derxxo
Supplemnenting A~rticle II of the General Code.
D~ist ributcfor. The term Distributor as used hlerein is defined as
a person, or ~firm or definiitely orgai-nized' division thereof, specifically
set up to render a general distribution service, which buys and
maintains at his or its place of business a stock of commercial station-
ery, office supplies and/or e~qui~pmient comnoonly used in thie outfitting
of offices, anld which through salesmen, advertising and/or sales
promlotionl devices, sells to institutional. conunlercial, andl/o~r indus-
triail users, but which does not sell in significant amounts to ultimate
This term. shall not include colc~ernls wcPhose primary business is
under the Retail Code.
Il'/wltesalr.ltp.The term Wolesaler as used herein is defined as
a person" or firm, or definitely o-rganizedc division thereof, specifically
set up to re~nder a general distribution service, which buys and
mlainltains at his or its place of business a stock: of commercial sta-
tionerly, altic~e supplies and/or equipment commllonly used in the
ourtfitting of offices, and which th~roughl salesm~en. advertising andl/or
sales promotl`:ionl devices. sells to retailers.
Tl~rade.--The ter~m T~rade as used herein is defined as the
distriburltionl of stationery for conunlerc~ial uses and/or of those articles
Ccommonl~lly usedCC in the ouitfiitting of offce-s.
J1/,1d er/ of the Trradel.-The term. Mem~ber of the Trade "' as used
herein is defined as a "' Wholesaler or Distr~ibutor whose prin-
cipal business is in. the Trade as defined above.
Regional D~istriots.--The term "' Regional District as used herein
is defined to include and be coincident with the geographical divi-
sions established by the National Stationers Associat~ion, which
geographical divisions conforml to thre F'ederal Reserve Districts ex-
cept for the addition of one District known as the Metropolitan
District of NewP York, and such other districts as necessary to in.-
clude territorial possessions of the United States, other than the
D~ivisional C~ode Authority.--The term "Di))visional Code Au-
thority ", as used herein, shall mean the Divisional Code Authority
for the C~ommercial Stationery and Office Outfitting Trade, a divi-
sion of the Whnolesaling or D~istributinlg T1rade.
Gene~ral Code.--The term. Genleral Code ", as used herein, shall
mean the Code of Fair Competition for the Wiholesaling or Distrib-
Supplemnenting Article VI, Sections 2 and 5, of the General Code.
SECTON 1. (a) The Divisional Code ASuthority- shall be composed
o~f six members representing the Trade, tw7Fo of whom shall be dis-
tributors, two wholesalers, and two members of the Trade whose
principal business is Off~ice Outfitting.
(b) Such six representatives shall be elected from a Nrational
Council to be composed of two distributors, two wholesalers, and two
members of the Trade whose principal business is Office Outfitting,
selected from each regional district by a majority vote of all mem-
bers of the Trade in such district who assent to the provisions of
the General and Supplemental Codes by signing a Certificate of
Assent and Compliance.
(c) The preparation of ballots and thte manner of electing both
th~e representatives to the N~ational Council and the members of the
Divisional Code Authority shall be subject to the approval of the
SECTION 2. With, the approval of the Admainistrator, the Divi-
sional Code Authority shall appoint appropriate agencies for the
administration of the code in each regional district or subdivision
of such district and shall delegate to said agency the necessary
power and authority for the administration of the two codes, in-
clurdinlg the power to adopt rules of procedure necessary to effee-
tuate such p~urposes. With the approval of the Adm~inistrator the
Divisional Code Authority may use for this purpose the facilities
of those trade associations which. are duly representative of such
district or subdivisions. Nothing herein, however, shall be consid-
ered to relieve the Divisional Code Authority of any of its duties
SECTION 3. The Divisional Code Authority shall appoint one of its
memberss to a committee which (if and when the Divisional Code
Authorities of the Wholesale Stationery Trade and the School Sup-
plies Trade shall appoint one mlnemIber each, thereto) shall constitute
a coordinating committee of the three Trades, and the Divisional
Code Authority shall thereupon delegate to such member such of its
general powers as may be necessary for hime, in collaboration wpith2 the
other two memibers: to coordinate the admiinistration of the Sup-
plemental Codes for the three Trades, so as to assure that such
administration will be fair and equitable. to each of said Trades.
Nothing herein, however, shall be considered to relieve t~he Divi-
sional Code Authority of any of its duties and responsibilities. The
Divisional Code Auth~ority shall abide by any judgmentt of the Coor-
dinating Commiittee reqluiring~ that committee to report to the
Admlinistrator any alleged violation of the provisions of this Sup-
plemrrental Code wcPhich requires thie cooperation of the three trades
in, its ad'justmient.
SEOTION 4. The SUCCESSOr tO RHJ miemlber of the Divisional C'ode
AluthorityT shall be nominated and elected? in accordance with a plan
devised by the Divisionlal Code Aulth~ority subject to the appr~oval
of the Admninist rator.
SE-m .The D~iv;iionni Clode AuIthorityr shall have thel following
duties and powers~'l.i inl addition to those prescr~ibedt in the Grener~al
Colie, subject to rev-iew by th~e Admlinistrator.r
(a) To appo".irt, a Tradt'e Practice Committee, which shall meet wi'h
the Trade Practice Commlitttees appointedl uner~C s1c'h other codes as
may be reinlted to the Tradec, except other Supprlemnental Clodes to thle
Gxenerl~u Code, for the purpose of formulating Fair Trade Practices
to govern the relationshlipss between production and distribution em-
playr?sr under this Code and under such othe~r, to the end that slc~h
Fair T'rade lPractices may be pr"lopowed to the Admrlinistrator as an
amlendmenc~t to this Code and such other Codes-.
(b) To appoint a IRegional Committee in enchl Regional District,
to assist the Divisional -Code Authority in admninister~ingr the Code;
provided, however, that nothing herein. shall relieve the Divisionlal
Code Aulthor~ity of its responsrlibilities as such.
(c) To organize, elect o~ffic~ers, hire employees, and per~for~m such
other acts as may be necessary~ for thel plroperl admlinistr~ation of the
SECTION 6. NYothinlg contained in this Supplemnental C'ode shall
consltitulte the mremlbers of thle Divisional Code Authority partners
for any- purpose nor shall any members of the Divisional Code Au-
thor~ity~ be liable in any manner to anyone for any act of any other
membl-ers, ofRicersI, agenrts, or employ\eejs of the Divisional Code
Aulthority. Nor shall any member of the DiviionnI Code Aluthor~ity,
exercising rreccralonale diigenc~e in the conduct of his duties here-
Ilnklr, be Iilable to anyone for any actionl or omission to act, under
this Supplemrnental rcde, except for hlis own wilful misfusaance or
;CwcrloN 7. If thle Admlinistra:t or shall dett~r~mine that any action of
tthe Di'i~sional~l Code Auithor~ity or any agency thiereof may be unfair
or unjust or co~ntranry to the publllic: interest. the Adlministrator may
r~equ~irec that such action be susp~iendc'er- to afriord an opp~ortunity for
inv~est~tioaio of thne merits of sulch action andl for further consider-
ation by slc~h Divisional Cod-e Au~thorityy or agency, pending final
action, wh~ich shanll not be effective unless thie Administrator approves
or unless he shllll fail to dli-approv~e after thirty alnys' notice to him
of intentionl to prcleedl with such action in its original or mnodified
ARTICLE IV--TRADE IPHAC(TICES
Supplementinga Article VII of the GenernI Code.
SECTION 1. Price Gularantee.--The sale or offerl for sale of any offlee
furniture under a~ny formr of guaranteed to thne pur~la-char against
either an advance or decline in the pr~ic~e of such office furniture is
an unfair method of competition.
SECTION 2. PuCfOP/y Xhlpment8.--On f.o.b. factory shipments of
merchandise direct to the customer on which the se~lling~ member of
the Tra.de has not filed an f.o.b. factory price in his open prlice
schedule and which do not include any handling service on the part
of such memberl l of the Trade, due allowrianee can be given to the cus-
tomier in lieu of Isuchl service; but in no case can the price~ quloted
be belowf invoice or replacemelntt cost, whichever is lower.
SECTIO)N 3. The trade practices contained7 ini this Supplem3ental
Code shall apply only to wholesalers or distr~ibutorss in this Trande
as definedl in Article II.
ARTICLE V--FERMIISESIV TRADE PRACTIC.ES
Supplementing Article VIII, Sec~tion 2, of the G~eneral Code.
SECTION 1. Openz Price A ~r g;ra-agemt antld Accountingfl.--(a) Thie
Divisional Code Auth~orityT shall cause to be formnulatedl an ac~count-~
ing system and mnethodsu of cost findiner and/or est~imatingr capable
of use by all members of the Trade. Aftr such system and" methods
have been formllulated and approvedc by the Administ rator1, full dle-
tails concerning then shtall be mlade available to all mlemlbers of the
Tradre. Thereafter all members of thne Trade shall detezrm~ine and/or
e~stimnate costs in acc~ordcance withn the pr~inciples of such mieth~od~.
(b) Wiith the advl\ice. and consent of thle Admini.t rator, the Divi-
sional Code Auzthority may at any time determine that an open price
plan of selling such conundc~city or conun-llod~itis of the Tr1ade as it
shall specify shall be put into e~ffet.t. Notice of such de~termnination
shall be announced to all known members of the Trade who distribute
(c) Ever~y such member of the Trade shall file with the Divisional
Code Authority a schedule of prices and terms of sale for such com-
modity or commodities, which schedule shall become effective imme-
(d) Allsuch schedules shall be in such form as the Div~isional
Code Authnority shall prescribe and shall. contain all information
necessary to permit any interested person to determline the exact net
price per unit after all discounts or other deductions have bteenl made,
whether pertaining to a single order, a commitment for future de-
livery, or a contract. Any siuch schedule, or any price thlerein, mayy
apply' nationally or may be limited to one or more geographical
(e) A revised schedule or schiedules, or a nlew schedule or schled-
ules, muay be filed by a member of the Trade w~ithl the D~ivisional Code
Authority at anly t~ime. Suchr new or revised schedlules shall takre
effect imlmediately upon filing.
(f) T~he ;Divisional Clode ~Authorityr shall promptly supply all
members of the Trade within copies of all schedules and revised sc~hed-
ules, and shall furnish such copies to any other interested party upon
request and receipt of cost of furnishing the same.
(ga) No member of the Trade who shall have ~filed a schedule of
prices shall sell for other than. such prices or upon terms or condi-
t~ions other than those stated in such price schedule.
(h) No member of the Trade shall sell anly commodity on which
he has filed no price at less thian the cost, determined as provided in
Sect ion 1(a) hereof, except to meet the price of a competitor whose
price does not violate such Section.
(i) For the purpose of determining whether Section 1(h) hereof
has been complied with, every member of the Trade shall, upon the
request of the Divisional Code Authority, furnish to a confidential
agoency designated by the Divisional Code Authority, in respect to
closed transactions onlyr, complete information in regard to any quo-
tation, order, cont ract, or sale of any product of the Trade, includ-
ing information as to specifications, quantities, price, conditions of
storage, transportation or delivery, terms of billing, cash or trade
discounts allowed, and other pertinent facts relating to such quota-
tion, contract, or sale. Such mformzation shall be held as secret and
confidential between the agency and the reporting me~tmber of the
Trade; provided that, upon request of the Administrator, any such
information shall be given to him.. The agency shall analyze, con-
solidate, and digest the reports and shall disclose to the Divisional
Code Authority such information as mzay be necessary to aid the
(j)Notinghere~in contained shall be construed to prevent the
dispoitio ofdist ress merchandise required to be sold to liq9uidate
a defunct or insolvent business, of discontinued lines, or of dam-
aged goods or seconds, in such manner and at such price and such
terms and conditions as the Divisional Code Authority may
(k) Nothing herein contained shall be construed to prevent the
fulfillment of a bona, fide contract existing on the date of approval
of this Code.
SECTION 2. %#I 188%#men Sale8.-In the case of installment sales,
the Divisional Code AiSuthority may make recommedations to the
Administrator relative to mimmnum down payments on atny com-
mnodity of the Trade in anyT Regional District. The Admimlst rator
may, after such notice and/or hnearinga as he mnay prescribe, approve
of said recommrnendationl, w\hichl shall thereafter become a part of
this Code anrd shall be effective as such.
SECTION. 3. (a) The Divisional Code Authority may recomm~rend
to the Administrator a plan for establishing, on a regional basis,
maximumn tradle-in allowanrces for used desks and chairs and other
items ordinarily used for trade-in purposes, and for enforcing thle
samne. TIhe Admninistrator mnay, after such notice and/or hearing
as he may prescribe, approve of said plan, which shall thereafter
become a part of this Code and shall be effective as such.
SIECTION 4. W11ithin one month after the effective date of this Code,
the Di~visional Code Authority shall appoint a committee to make
a study with a viewp to establishing, as soon as possible after t~he
effective date of thelf Code, classifications and standards of dimiension
and quality for such of the products of the industry as it may select
in cooperation writh the Bureau of Standards of the Department of
Commerce and for any other organizations which wrill guarantee both
Government and Consum~er representation in the drafting of such
standards. This committee shall within one year after the date of
its appointment report its recomm~endattions to the D~ivisional Code
ARTICLE VI--EF~ECTIVE DATE
This Supplemzental Code shall become effective on the tenth day
after it.s approval by the Administrator.
Approved Code No. 201, Supplem~ent No. 3.
Registry No. 409-1-0)2.
UNIVERSITY OF FLORIDA
3 1262 08850 5499