UNIV. OF FL LIS.
DOCUME S ~DEPT
GOVERNMENT PRINTING OFFICE
For sale by the Superintenldent of Documents. Washington, D.C. - Price 5 cents
Approved Code No. 201-S8upplement No. 6
Registry No. 409--06
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Diviolon of the Wholesaling or Distributing Trade)
AS APPROVED ON APRIL 21, 1934
WE DO OUR PART
TChis pu'blication b is~ fortz sle the Sup~erinltendent of D~cumnents, Governmlent
Printing Office, Web~c~ingtonYI, D.C., ;IdI by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF TIHE DEPARTMiENT OF CO~MMVERCE
Atlanta, Ga.: 504 Post Otice~ Buildling.
Birmlingham, A~la.: '257 Federa Buliblling.
Boston, Mu~ss. : 1801 Customhouse.
Buffalo, N'~.Y.: ChaJ~mber of Comrmer? e Buildingp.
Chlarleston. S.C.: Chamber of Commerce Building.
ChItCneo, Ill.: Suite 170(:6, 201 Northl Wells Street.
C~leve~loudt Ohio: Chamberr l of Commerce.
Dallas, Tex.,: Chamnber of Comomerce Building.
SDetroit;, Mich. : 80j1 F~irst NaltionnIl Banklz Buildfing.
i I Houston, Tex.: Chamber of C.ommerc~ce Buildling.
Indlianapol~lis. 1Ind.: Chamber of Comzmerce B~uild~ing.
;Jalcksonville. Fla.: Chamber of Commerce Building.
Ka~nsas~i Clity. Mlo.: 1025S Baltimore Avernue.
Los Angerlesi, Calif.: 1163 South B3ifrladway.
Louiwriille, Ky.: 408 Federal Buildlg.
Alelupii s Tcnn. : 229 Federall Euitlding.
i RMilunuepolin. MIinn.: ~213 Federal Burildling.
Ne Orc~- (Ll'nn<1, La. : Roomn E225-A, C'us;tlumblouse.
Nov Y ':- ork, N.Y.: 734 Custonalrlllouse.
INorfolk.. Va.: 400II E~ast Plinume Street.
Philadellphli n. Pa.: 42"2 Commercial Trust Bulilding.
Pittsburgh, Pa.: Chamber~er~ of Cormmerce Eullding.
Portland, Oreg;.: 215 New Post Office Building.
St. Louis, Mor.: 506 O-ive S~treeit.
San Francisco, Calif.: 310) Cutombouse.
Seattle, Wa~sh.: 809 Federal Office Buildling.
Approved Code No. 201--Supplement Nio. 6
SUPPLEMENTARY CODE OF FAIR COMPETITION
WHOLESALE] STIATIONERILY TIRADE
As Approved on April 21, 1934
SUPPLEMENTARY CODE OF EFAIR COMPETITION FOR THIE WHOLESALE
A DIVISION OF THE W'HOLESALINGr OR DISlTRIBUTING; TRADE
An application having been duly made pursuant to and in full
comp~liance, with the provisions of Title I of the National Industrial
Recorery_ Act, appr~oved June 16, 1933, for appro-val of a Supple-
mlental Code of F'air Competition for the Wholesale Stationery:
Trade to the Code of F'air Competition for the Wholesaling or Dis-
tribultin~g Trade, and hearings having been duly held thereon and
the annexed report on said Supplemental Code, containing findings
w~ith respect thereto, having been madiie and directed to the Piresident:
NOWN, THEREFORE, on behalf of the Presid~ent of the United
Stazttes, I, Hugh S. Johnson, Administrator for Industrial Reco~ver~y,
pur~sunnlt to authority vested in me byEeuieOdroftePei
dent inludng xectiv Orer o. 548--A~, dated December 30,
1933, and otherwise; do hereby incorporate by reference said a7n nexedl
report and do find that said Supplemental Code complies in all re-
spects w~ith the pertinent provisions and will promote the policy and
purposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Competition be and it is hereby
HTJan S. JOH NSON,
Adminisb'ltrator for Indu~sstrial7 Recovery.
H. O. K~so,
April 01, 193$
REPORT TO THE PRESIDENT
Th2e If hite! House.
SmR: This is a, report of th~e Henrinlg on ther Supplemnental Clode of
1Fair Comupetition of the Wholesale St~ationery Trade, conducted inl
Roomli 2069-66 Deparltment of Commerce Buildling, on 1\Iarch 10),
1934. The CodeI, whichI is at~tarhedl, wiss presented by a duly qualified~
and authorized retpresec''ntative of the Trande. c~omplying w~ith the
statutory; requiremelnt<,t hsid to represent 60 p~er cent, in number~~1 and
about 73 per cen-t. in volume of sales of the Trade which coulld be
inc~ludedl~ in. th~is Code.,
Accordling ~to staltistics furnished by mlembe~~rsl' of thet whol(.lesajle
Stationeryv Trade, there are approxcli mately~ 250 e~stablishmnents withl
nowreaC~te' anllll sales of ;$;30(1.000(,000. Thle Trad~e empl~loy~ about
PRC,\ISIONS OF TH~E CODE
Since this Code is supplementalrtn to, the Codelt of Falir C'omp~el~titon
for the Whl'lolesaling or Distr'ibutigr Trande, it contains no labor
Thle p~rov,\ji ioi containing supplementa~l l dfinitiions are cons~idered
iROus1Ye allcl 80000000ot .
Thle rSupplementclt to the Admliinist ralltive provisions of thle General
Codet establishecs a Divrisional Cod~e Autholrity whichl is fair~ly and
adequately r~epre~sentativ-e of a~ll ~the dliffer~et lelements in thle Trade'.
Thle Trade practices p~op~osedl are not in a71ny way objectionsible.
The roviion egaringquantity disciunits is desi ned to mneet
pr.obleml which hans r~ecently been dlistressing to the Trade~. The pro-
vrisionl regar~dig maijl or~der shipm'ents is ado(pted7 as a pr~otective
mneasrle for salesmnen.
The Dep~uty Admninistrator in his final reporllt to mne onl said Sup-
p~lemental Code ha~vinlg foundt as herein set forth andi onlr thle basis
of all the prloiceedingrs in this malltter;
I findl that
(a) Said Supplemeln inI Code is dlesigled to promo"~te thbe policies
andI~ purposes- of Title I of the Natiornal Indlustrial Recovery Act,
inc~ludtino removallr\ of obl.stru~c.tions to the free flow of inter~stat~e and
for~eignl colnlrervc~ which tend11 to dimiinish ther amoulnt th~elreof, and
will proville for the general'l welfare by p~rclnwting thle organnization
of trade for the purpose" of cooperative: aciitio aniong tradie groups,r
by induc~ling and maintaininr unlita.l net'ionl of labor1 anld mai~nag~e-
ment under adequate governmental sanlction andl supervision,. by
eliminating unfair competitive prne;ltices, by p~rolnmting the fu~llest;i
possible use of th~e present productive cspac~ityr of indusi~tries, by
avoiding undue restriction of production (except as may be t~em.-
porarily requiredl), by increasing t.he co~nsumlptio n of indlustr~ial and
agricultural produucts thr'ougrh increasing purchallsin poer by1O~~'
redneing: and relieving unemployment, by imnproving .standaris o
labor, and by otherwise rehabilitating industry.
(b) Said Trade normnally employs.i not more thaln 50,000O employees
and it. is not classified by me as a mnnjor industry.
(c) The Supplemental Code as approved complies inl all r~espects;
with the per~tinent provisions of saidl Title of said Act., including
without limlitation Subsection (a) of Section 3? Subsection (a) o
Section 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 Supplemental Code is not designed to and~ will not permiti
monopolies or monopolistic practices.
(e) The Supplemlental' Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discrimi-
nate against then.
(f) Tihose engaged in other steps of t.he economic process hatve
not been deprived of the right to be heardl prior to the approval of
this Supplemental Code.
(g) This Trade is duly representative anid therefore, as provided
for in the Code of Fair Compet~ition for the WYholesaling or Dis-
tributing Trade (footnote to Section 2 (b) of Article VII). and in
accordance therewith, is entitled to become a Division of said Code
and be permitted a Supplemental Code there~to.
F~or these reasons, the Supplemnental Ciode hias been a.ppr~oved.
Hean S. JOHNSON,
APrms 21, 1934
SUIPPLEMIENTPARYV CODE OF FAIR COM1PETTITIO FOR
THTE WH~OLESALE STATIONERY' TRADE
A1 DIVTSION OF THE WHOi:LESALING OlR DIITR.IBUTING~ TRADE
AnnICI.E I PI7RPOSES
To further effectulate the policies of Tit~le I orf the N~ationlal Ildusj-
tr~ial Recovery Act the followfilgr prloviSionS are esitablishedl as a
Sup~plemlental Code of Fair Comp~etition for the Wholesale Station-
ery Trade to th Codle of Fiair C'ompletitionI for the Wholesalinga or
~Distr~ibuting Trade, as pr~ovider d by Ar~ticle? VI, Sec~tion 1 (c) thereo~f,
and shall b~e considered~ as a part ojf and in connection with such
Whiolesainiig or Distr~ibuting C'ode, and bjoth such Codes shiall be
binding upon every member of suchl Whlole~sale S~tationery Tralde.
~ARTICLE 1 1-- EFINUIT I O S
SUPPLEMiENTING; ARTICLE II O:F G;ENERAL CODE
W"Cholesale Station~er or Distributtori. The sterns '' wholesale sta-
tioner "' or "~ distributoIr ", as used hlerein, shall mlean any individual,
par~tnershoip, asso~ciatioln, corp~oration, or other firm or definitely or-
ganized division thereof, organizers for the sp:ec~ifie purpose olf ren-
deringr a general distributioni service which buy~s an-d miinltains at
his or its place of business a stock of lines of merchandise cus-
tomn rily carried by those engagred in thep Wholesale Staltionlery Trade
and which through salesmen, advrcitising, enltalogs, anld, or sales pro-
mnotion devices, sells p~rim~r~ily~ to retailers. anid o~r ilc~identally to
institutional, commllercial, and/or industrial users, but not mn signifi-
cant amcounts to ulltimnte. consum~er~s.
The Trade~.--The -term Trace as ulsedl here~in Shal llmean thle
business in whlich! whIolesalers: or' distr'ibulltor'S of stationery' are en-
Divisional Code Auzthority.--The terml Divisio:nal Codle Author-
ity ", as u-ced hlerein, shall mnean the Div-isional C'odet Author~it. for
the Wh~olesale St~ationeryr Tradle, a dlivisionl of the W\holesa~lingr or
Dist rilut ine Tr ade.
Gem il-ral Code.--The term Generanl Code' ", s used heretin, shall
mean the Code of Fair Competitionl for the Wiholesalingr or Distrib-
Memrnber of the Tratde.-ThI'-e term11 '' membellcr of th~e Tradle "', as usedi
hereini, shall be defined to meanl aniy Wh'olesaller or Distribuitor
engagedl in the Trade.
SUPPLEMENTING ARTICLE VI?, SE(.TIOlN 2 (El AND SECTION i OF THE
1. (a) The Divisional Co&-l Authoriity -1hall consist o~f seven )
mebrs ro mogthe trade~, orII l~~llr.~eprentatives thereof, four
(4) to be chosen by the W\holesale Divisioln of thle Bnelld of Control
of the Wholesale Stationers' Association, two (2) to be elected by
the Interstate As~sociationr of St~ationery, Toy, and Novelty Jobbe~rs,
Inc., at any regular meetings of that Association, and onle (1) to be
chosen by those memlber~s of thle Trade who are mlember~s of neither
of these Associations. This Ilast member shall be chosen according
to a plan to be prepar~ed~ by thle Wholesale Stat~ioner~s' Association
and approved by t.he Adlministrantor. In case no pr~act~icable plan
of selecting this memiiber en be worked out he may be appointed
by the Admninistrator.
(b) Only those members of the Trade (regardless~ of membership
in the Associations named inl Article III, Section 1 ()aoe hl
be allow~ed to vote in th~e election of members of theDvional Code
Authority who sign or shall hav~e signed a statements of assent and
compliance to this Sup~plemental Code and the General Code.
(c) The terms of office of members of the Divcisional Code Au-
thority and the method of electing their successors whether for full
new terms or for unexpir~ed terms shall be established in the by-laws
of the Divisional Clode Authority, subject to the approval of the
2. The Divisional Code. Aut.hor~ity shall appoint one of its mem-
ber~s to a committee, which, if and when the Divcisionral Code Au-
thority of the Commercial Stationery and Offlee Outfitting Trade
and th~e Divisional Code Aiuthority of the School Supplies Trade
shall appoint onie member each thereto, shall constitute a coordinat-
mng committee of the three. Trades. If anrd when. the, Divrisio-nal
Code Authorit~y for the W'holersale Stationery Trade shall appoint
its member to thle coordinating committee, th~e Divlisional Code Au-
thority shall delegate to its members such of its general powers as
may be necessary for himn, in collab~orantion with the other two memr-
bers of the coordinating committee, to coordinate thpe administration
of the Supplement.al Codes for the three Trades, so as to assure that
such administration will be fair and equitable to each. Nothing
herein shall be considered to relieve the Divisional Code Author~ity
of any of its duties and responsibilities. TIhe Divisional Code Au-
thorityr shall abide by any judgment of the coordinating committee
requiring that comm ittee to report. t~o the A~dm~inistrator anr.y alleged
violation of t~he provisio~ns of thlis Sup~plemnental Code which requirlles
the cooperation of t.he thr~ee. Trades in its adjustment.
3. The Divisional Codle Authorit~y shall have the followciing duties
and powers, in addition to those prescribed in the General Code.
(a) To appoint a Trade Pract~ice Committee, which. shall meetf
with the Trade Practice Commit~tees appointed under such other
Codes as may be related to the Tradet, except other Supplemental
Codes to the General Code, for the purpose of formulating fair
trade practices t~o govern the relationships between production and
distribution employers unlder this Supplemnental Code and under such
others, to the end that such fa~ir trade practices may be proposed to
the Administ~rator as anl amendmntet to this Supp~lemental Code and
such other Codes.
(b) To appoint a Regional Comm~ittee in each of such, regions as
the Divisional Code Authority may establish,! to assist the Divisional
Code Authority in administering th~is Supplemelllntl Code; proviledl,
howreer, that nothiing herein shall relieve the Divisional Ciode
Aunlthority of its I~responsibilities; as suchl.
(c) To organize, elect officers, hire employees, and perform such
other ac~ts as may b ~e necess;ary~ for the proper administration n of this
4. Noth~ingr contaninedl in this S~upplementat~l Code shall constitute
the mnembers of thfe Divisional C'ode Aurthority partnlers for any p~ur-
pose nor shall any members~ of the Di visional Code Author-it.y be liable
in any m~annerI to anyone~ for any act of any other member, officer,
agentC, or e-mplo~yee of the DivisionllR Codle Author'ity. Nor shall any
member of the Di-visional Code Auithority,_ exercising reasonable dili-
gence in the conduct of his duties h~ereuind~er, be liable to anyone for
any action or omission to act, under th~is Supplemlental Code! except
for htis own.1 wilful misfeasanrce or nonfeasance.
5. If the Administrator -shall dletermine that any ne nation of t~he
Divi i;,onal Codle Authlority or any agency thereof, Inay be unfair or
unjust or corntenc1~y to the public~ interest, the Adlminist~rator mnn.y re-
qu~ir~e that such nation be susplendedl to affordt an opportunity for
investigation of the merits of such action aind for furt~her consid~er-
ation by such D~ivisional Codle Aulthorityr or agency, pending final
action, which shall not. be effective unless t~he Admlinistrator approves
or unless he shall fail to disalpprove after thirty dlays' notice to him
of intention toir nmptro c it-h uchlr~ action iln ;its or'iglinal or modified
A'rlCric IY~-Tar.10 PRACTICES
SUPPLEMlENTI NGC ARTTICLE V'II OF T'HE GI~rENErAL CODE
1. (a) Wllithin 30 dalys after they are notiified~ to do so by the
Divisional Code Authority mi-llembes of the Tradlce mulst file wFith it
schedules of their sales prices on such of the dliff'er~ent items which
they sell als the Divisional Codet Author~ityg may from time to time
designatel, inlflcludin all termiis, conditions, or allowances affecting
the price at which any item is offeredci forl sale to their cusltome rsi .
These~ schedules may be c~hanged by: filing w~ith the Divisiona~l C~ode
Aiutho~ity notice of sulch c~hanrges.
(b) It shall be an unfair tradie p~racti~e forL a mlemlber of the
Trade to sell or offer for sale goods at prices lower than those w~hichl
he then has on file.
(c) It shall be anl unfair tr~ade practice for any members of the
Trade to file a pr~ic'e as outlined- in par~agrap~h (a) or to sell or offer
to sell any item for a price low~er thazn the nlet invoie price plus
incolnunlg transportationl costs to his w~arehouse, provided that
(1) A mnember of the Trade lony sell at a price less t~han the
minimum provided above in order to m~eet the prlice of a comp~et~itor
wh-ose pr)1ice doCes nFt v'iola~te thiiS sec~tionl. Suchi sales shanll be reported
to t~he Divisional3` Code Authority within three day2s after thecy are
(2) Bona fidle sales for the purp'lose o~f clos~ingr out discoitinuied,
obsolete, or distr~ess merchandlise~ may be mnade at such prices and
upon" such terms~ aInd condircitionsi us may br nlecessary to etecct their
sale. Full details of suchrl sales inlcludcingc thc amiounlt of such ner-
chandlise on hand andt the date of its pu~rchasle must be reported to
the Divisiolnal Clode Aulthorlity betforei the d~t-e of such sale.
(3) Nothinig her~ein shall applyl~ to sales mladle d~irectly or indirectly
t.o a Fedteral o-r Stalte gov\elrnmlent or anly political sub-div-i ion
(d)~~ ~~~ Al ie rie sa l b attersy of public: rec~ordi to all inter-
estedl p~arties whlo pay\ to' the Divisio~nal- Code Authority the ceast of
furnishing theC in~'l'~~foraionl desired.
(e) Whe~n mnanufnetturers of produ~rcts; d~iatributed7 by this Trade
through actionl of their. resp~ective code authorities shall have estab-
lishedl standards~ units as to grades, qlualitits, size, quantities, and
counts in w\hichl standa~llrd unit fabricated goods shall be olffered~~ for
sale, and~ suIchI un~its sh~all ha~ve been approved by the Admninistrator,
price .schedlules filed~ b~y members of the Trade, shall be in terms of
the standards. unlits 5(o establi.- hed; but without respect to the manu-
factuirers' dlesiilnatedl priices.
(f) If at any timel theC Adm~inistrator after a hearings shall find
that. this ope~n price a~~nl:rrangmnt is being usedl for the purpose of
price: fixing~ he mlay in d-isc.lretion suspend its opielration, l or declare it
a p'ermainentl y inoperal~tive.
2. The following sihall be the maximlum terms of credit to cus-
tomers: 2C9, 10 days,~ E. O. Mi., 60 days net.
3. The followings u~nifor~m dating on sensoa~il l goods~'l shall prevail
under this Supp~lemlental Cocde Fiebruary 1st for 'Valenrtines, April
1st folIr Eater goods~, Sleptember 1st for school supplies, Decemnber
1st for holid~ay goodsi. Subject to the approval of the Administrator
the Divisional Code Authlority shall have power to modify these
uniform dutings orJ to estalblish~ uniform dultings~ on. additional items
Thle max:Iinuan11 enSh discount terms which shall apply to such
seasonal or datingr ordlers~ shall be 2%0, 10 days~, 30 days net.
4. Offerinlg or giving special cash or trade dlisc~ounts on mail
ordier~s better thanl gSiven on orders taken by isaleismen or through
regularly channelsi shall constitute a violation of this Supplemental
5. Qualntity dliscoulrnts .shall be c~omputedt on the basis of the quan-
tities shlippedl andl or billed to a single buyer.
6. Thle offer1ingf or giving of prizes, premiumls, or giftst in con-
nection with the sale of products, or as an inducement thereto, by,
any scheme which inv\olves lottery, misrepresentation, or fraud will
constitute a viontiaton of this Supplemental Code, provided thah
nothing herein shlln1 prevent the general distribution of prizes,
premnums, or gifts conunonly used for advertising except so far as
they are acturalIly given in a scheme which involves lottery, misrepre-
sentation, or fraud.
ARTICLE V-PrRICE INCHREASES
Whlerens the policy of thle Act to increase real purchasing power
will be madre mnore difficult. of consummation if prices of goods and
services increase as rapllidly as -wages, it its recognized that price
increases except suchi as mnay be r~equilred to meet individual cost
should be delayed. Burt w\hen made suchl increases should, so far
as possible, be 'limited to actual additional increases in the sellers'
AnnoZ V7I--EFFECTIVrE ATE
Th~is Supplem~ental Code shall become effective on the 10th day
after its apprloval byl the Administr~ator.
Approved Code No. 201--Supplement No. 6.
Registry No. 40tM)6.
UNIVERSITY1111 OF FLORIDA111111111111111