Registry No. 409--06
NATIONAL L RE COVE RY A DMINI STATION
PROPOSED CODE OF FAIR COMPETITION
I UNIV. Q~~ f~Cj~,~;-QUR`~P~
,Ann ~lf~jF. P' I.
The Code for the W~holesale Stationery Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 rented
AS SUBMIITTED ON AUGUST 31, 1933
WHOLESALE STATIIONERS ASSOCIATION OF THE U.S.A.
CODE OF FAIR COMPETITION OF THE WHOLESALEE
STATIONER'S DIVISION OF THE STATIONERY _PPPPPAND
OFFICE EQUIPMENT INDUSTRY
To effectuate the policy of Title I of the National Industrila
Recovery Act, tihe follow-ing~ provisioins ar~e established as a code of
fair competition for WVholesale Stattioners:
This code is set up for th~e purpose of cooperating with the mianu-
facturers of all t.y.pes of stationery. and allied products, to bring
about increasedl employment, to increase puirchasing power, to in-
crease indlustry, t.o foster fair competition, to rendier economlical
service of dlistribution to manufacturers, to establish fair and adle-
quate wages, andl tO ELrrIMIATE UNFAIR: TRADE PRA\CTICES 111 conneiiion
with th~e distribution of stationery products.
Participation in this code and in any subsequent addritionl to the
code shall be extendc~ed to anyl person, partner~shi p, or corporationn,
conducting a legitimate wholesale business in the stationery indus-
try. It is not coarroesonY tha~t all such individuals, partnaerships, or
corporations, be members of the Wholesale Stationers'' Association;
BUT, this code and all of its provisions have been developed by this
Association and its membership, as t~he only recognizedl trdle Asso-
ciation incorporated and organized for the wholesale stationery divi-
sion of this industry, and including therein as members thne rilnilpal
wholesale distributors of stationery in the UTnitedl States, therefore,
this code is a true statement of ethics and trade practices cov.eringr
the necessities of fair competition to enable wholesaing in the in-
tlustry\ to be operated successfully and profitably under the Indus-
trial Recovery Act, and subsequent regulation a~nd enforcement of
the code will be entirely in the hands of this Association and its
Active membership in the Association is open to any proven repu-
table legitimate wholesale distributor of stationery and allied
products in the United States.
ARTICLE ITI--CLASSIFICATIONS OF THE T~HOLESALE STA\TIONcER
For the purpose of administration of this code the whlolesale of
stationery is defined and classified as hereto set forth:
First. Wholesale distributors selling principally stationery and
9456--33 1 y
Second. Wholesale dr~uggists maintaining a recognized wholesalle
Third. WVholesale paper houses maintaining a recognized whole-
sale stationery department.
Fourth. Wholesale toy and notion houses with substantial sta-
Inr each and every classification, a nrr~larBTE whlolesaler must buy
and sell for his own account, maintain stocks and warehouses, and
perform the recognized functions of w~holesa~linga.
ARTICLE IV-LAIBOR CODE
SECTION 1. Emnployers in the wTholesale stationery? dlivision of thiis
industry shall comiply w\ith the requirements of thle Sntionial Indlus-
trial Recovery Act. as follows: (1) that emnployees shall hav~\e the
right to organiize anid b~argain collectively througui h representatives
of their ow-n choosing, and shall be free fromt the interference, re-
straint, or co~ercion of emnployers of labor or their agents, in the
designation of such representatives or in self-organlization or in
other concerted activities forl the purpose of collective bargaining
or other mlutua~l nid or protection; (2) that nio emplloyee andt no one
seeking employment shall be required as a conditions of employment
to join any compalnyl union or to restrain froml joining, organizing, or
assisting a labor organization of his ow~n ch~Ooingil; andl (3) that
employers shall comply w~ith the maximum hours of labor. Inulnimu ntl
r~atesi of pay,. and other conditions of employm'ent, approved or pre-
scribedl by t~he President.
SEC. 2. TVilth the exception of special p~rov-isionis as hlereinafterr
noted, thle maximum hours of w~ork for the employees in this branch
of the industry and the minimum wags to be paidl shall conform
to t~he following sch~edlule.
The mninimnum ~agres shall be at the following raI~tes:
Cities o~f 500c.000) population a nd on-tr ...._ -----_-- $1. 00 per week.
100,000o to> 500,0..HO______---------_------------------ 1:3. 50( per week.
Other ('onulnluities ___ -----_..---- ------- 1:3. 00! er week.
Distributors located in the Southern Section of thle United States,
South of the Ma~son and Dixoni Line will pay a mIlinimlum1 of $1.00
per wveek less th~an these schedules.
Excep~t that on and after the effective dlate of thiis code. Junior
emnployees bietweenl the agers of 1;6 and 18 years, inclusive, with less
than six munthls' exp~eltrice mn ny wh'lolesale esta~lishment, shall
be paid at the rate of $E123.00, $11~.50, and $11.00 as of thle classifica-
tion of communrnities listedl above, and except tha~t apprentice em-
ployees more than 18 yearIs of age writ.h less than six mlonth~s' experi-
ence mnany wholesale establishment shall be pa id at the rate of
$1.00) less per worlkweek thlan the rates for conununlllities~ listed ab~ove.
On and after the effective date of this Code no memriber of the
industry shanll wor'k any emlployee (except execut~ives whose snalaries
exceed thirty-five ($35i.00) dlollar~s per w-eek, night wntellunen or out-
side salesmen, and except outside deliverymen and~ mlaintenance em-
ploylees who mayr be employed forty-eight hours weektly orI more, if
paid time! and one third ~for all hours over forty-eight hours1. weekly),
for more than forty (40) hours per week, excepting at Christmas,
inventory, and other peak periods, employees may work forty-eight
(48) hours per week for a miaximum of not to exceed three weeks mn
each six months.
~ARTICLE V--INDUlSTRY: REGULTION
TRAJDE-PRACTICE RULES FOR FAIR COMPETITION
In r~e~ognition of thle fact. that. the entire welfare of thle industry
is p~redlicatedl upon completitive conditions of the indlustry,41i tis s-
sociation of w~holesale dlistribrutor~s adopts the following Coe groI-
1. It shall ber the policy of this division of the stationery industry,
namely, the wh~oleisale stationer~s' division, to pubtlicly adlopt. and an-
nounce AcCEPTAcBLE malnulfactur Iers' price schedules, andi any member
of the indus~try sellingr or proposing to sell at different prices: below
those stipulated inl thlese announced price .schedlules shall be con-
sidered as violatingr this Code.
2. This industry. r~eicognizinig the manufacturers' right to safe-
guardl his assrets andi protect the standing of htis products established
through adv~ertising and other promotional effort, declares in favor
of the r~esazle price policy, andi such prices to be contingent upon a
proven fair profit andc nlot detrimental to public interests.
3. UTniform dating on sensoinal goods, such as V'alentines, February
1st; Easter Goods, April 1st.; SCporting Goods, Alpril 1st; School
Supplies, Sjept.embe~lt r 1st Ho-liday G~oods, Novemnbe 1st; shall: apply
under this Codle. Also Uniforml Ca~sh Discounts--22% 10 days end of
monthl- 30 daysrr net fo-r seasona:IIl r dalti;ng ordter~s--all other 290 10
days E.O.MI., 61! days net. (In no ease shall cash discounts exceed
2%i .30 days or 15tih of the mnonthl followinga date of pu~c~hase.)
4. Discriminationl between dlistributors by offering consignment
arrangements not avanila-ble to all is a v~iolation of" this Code.
5. Offering or griving~ special cash or trade discounts on mail orders
better t~han given onl or~der1s tak~en by slesmen or through regular
channels shalil constitute a1 violation of this Code.
6. Collective group or joint buying,. practiced for the purpose to
obtain maximumi discounts on quantities which the individual buyer
or member of the group cannot use for his owfn account, shall con-
stitute a violation of this C'od-e.
7i. The secret payment or offering of allowance of rebates, refunds,
commissions. credlits, ~r. uneurnedpt discounts, whether in the formn
of mloney. merchandise, premniums, or otherwise, constitutes a viola-
t~ion of this codle.
8. Direct factory~ orI drop shipmellnts constituting less than a fixed
mnimimumn shipmecnt or any smallfj shlipmnent less than a regular
minimum ship~mert. ( uch ship~ments to be either dollars and cents,
mer~cha ndlise, or wTeig~ht) as decided upon0 by' various manufacturers'
comlmodity group, ~ha~ll be subject to a service charge to be deter-
minedl by the requir~nement of each commodity group, a~nd any varia-
tion from su~ch practice will constitute a violation of the Code.
9. Definite standards of gr~ades, qualities, sizes. quantities, and
counts for fabricated units offered at a unit published pieada
es-tablishled by1 manufacturers' commodity groups shall ~br:ie an ~adopted,
And any variation from quch schedules as set up will be a violation
of this C'ode.
10. Selling of merchandise at a price reduced from a fictitious or
any unreasonatbly marked-up prices will constitute a violation of
11. To protect small units of the industry it will be considered
an unfair practice for manufacturers to offer to any dlistributor units
of merchandise of larger size or count than will be offered to any
other type of distributor at prices whichl wouldl prohibit th~e small,
indirect buyinga dealer fromt profitable selling such merchandlise at
comparable~ retail pr~ices.
12. Thle circulation of threats of suits for infringement of patent
or trademark amnonga customers of competitors, not. made in good
faith but for the purpose and with the effect of harassing and intimn-
idlating the customers, constitutes a v'iolationl of this Code.
13. With due recognition to initiative inl business, the practice
of usur~ping~ designs, sty~les, or~ patterns originated by a competitor
and appropriating them for one's ow~n use constitutes a violation of
14. The imitation of tr~ademarkts, trade namne, slogans, or other
manrks of identification of competitors constitutes a violation of this
15. Selling of merchandise at prices b~low n reasonable marnlk-up)
to cover suI~rmmo costs of distribution is a7 violation of this Code.
This division of the. industry recognizes the right. under this~ title
to interchange cost. information, price lists! and- such other data as
mnay be necessary for the indlustry to more efficiently operate anid to
more scientifically serve thec reqluiremnents of dlistr~ibuitioni forr th~e
Eachpersn cvere bythis code will submit to the admiinistrator
or any other agency deintdb h rsietdl etfe
reports in reference to the cost of douingi business or any~ ot~her figures
recquir~ed for the purpose of show~ing the effect of said code, and will
also furnish to the Secr~etary of the WCholesale Stationer~s' Association
figulresi w~henever r~eqired show~ing actual hours of w~ork by the
various occupational groups oft employees and the miinimumii rates of
It will be considered a violation o-f this cod~e for anyF wh~olesale
stat~ioner to stock, promote the sale o~f. or to do business w~ith any
Amierican manufacturers, whether in inte~nstate comimerce or inter-
state commerce, who does not maintain the wage scale and thre
mnaximumn hours established by the majority of the manufacturers
in said commodity who have sulibmitted a code to the Governmnent.
.For the protection of the small wholesaler and in order to achieve
stabilization mrn our industry and to build consumer buying con-
fidence, thie wholesalie stationers declare that. thley will require from
each supplying manufacturer a definite statement of sales policy,
".e., whether the manufacturer sells only through retailers and wvhole-
salers and other retail outlets, or also sells direct to the consumer, or
both, and such declaration shall include subsidiaries of said mianu-
facturers, companies operating under other names, and companies
illn hichi said manufacturers have major fnancial interests. The
wholesale stationer shall also r~equir~e from these manufacturers a
definite statement of price policy as of each class of distribution--
r~etail, wholesale, and other retail outlets and direct selling. A~
declaration of such policy by any manufacturer will bind himn in
honor to abide by his definitely announced policy. Deviation from
such policy by manufacturers constitutes a breach of confidence be-
tween th~e manufacturer and his distrib~urors andl will be considlered
by the wholesale stationer as an unfair method of competition.
~uch violations, after having been established inl fact. by the Board of
Control of the W'holesale Stationers' Association, shall be subject to
publiention to all wholesalers inl the Association.
It shall be deemed a method of unfair competition for any sup-
plying manufacturer to extend to any person or group of persons
credit terms not extended to all persons or groups of persons under
like circumstances and conditions. The wholesale stationers dleclare
such a method to be a method of unfair competition.
In the event that it becomes necessary for a2 manufacturer supplier
olr wholesaler to I~l~lqidtep surplus, slows moving or obsolete mnerchan-
dise, the manufacturer or wholesaler shall file with the Secretary o~f
this Association. who will notify the General M~anager of the Na-
tional Stationers' Association for publication to all Clommercial
Stationers, a staitement showing the quantity, styles, and numbers
of such merchandise offeredd for sale. The Secretary shall distribute
this list of merchandise to all wTholesalers in the affected territory
so that such outlets miay7 have the privilegre of purchasing or exchang-
ing this merchandlise for a period of thirty days. At the endl of this
period the Secretary may authorize the disposition of that merchan-
disee by1 its original owner for a period of sixty days at a price to
be determined by a special committee appointed for that purpose.
In border to provide data necessary to supervise the execution of
this Code and to determine the fairness and reasonableness of the
trade practices heretofore listed, all firms coming under the classi-
fication of wholesale stationers shall furnish the WIholesale Sta-
tioners' Association necessary statistical information bearing on
wages, hours, costs of dloing business, etc.
All communications and conferences of the W\holesale Stationers'
division. of then stationery indusitry pertaningnt to or concrnring im-
UNIVERSITY OF FLORIDA
IMIIIIIIIUR~illYIMMlINI M I
6 3 1262 08850 5374
provemrents of mHIS code orreaia anyt salbetru of its provisions or a.ny matteirs ifb
relaingtheetoshal bethrughthe Advisory Coordinat~or who is
also the Secret~ary of the W~holesale Stationers' Association.
The Secretary, acting as maznagrer of this Association, together with
the Board of controll shall be emnpowered to administer the provi-
sions of this code, to secure adherence thereto, to hear and adjust
complaints, to consider proposals for amendlments thereof and other-
w~ise carry out within the industry the purposes of the National
Industrial Recovery Act.
The Secretary, withl the approval of the Board of Control, shall
prescribe such other rules andl regulations as he shall deem proper
f~or t~he administration and the enforcement of this code. .
Ainy violation of any article or section of this code: shall be dealt
withh in a hearing before the Boar~d of Control of the Wh~olesale Sta-
tioners' Association. Penallty for such violation shall be within the
discretion of thle Board of Ccontrol or Committee appointed for the i
purpose." Repeatedl violation of the codle or refusal to accept such
penalty as may be impoosed, may~ subject the violat~or to suspension.
or exp~ulsion. WVhen such suspension or expulsion is inv~oked, the
name of the violator and reason for suspension or expulsion shall
be filed with~ the Administrator of the Indulstrial Recovery Act. ;~
The Wholesazle Stationers, recognizing that. there is a close link: be-
tw~eeit the manufacturer and his distributors, hereby declare that
they shall permit manufacturers to approve this code in principle ;
and that the names of such manufacturers sIhall be published and
placed in ~thTe hands of all wholesale stationers participating in this
ARTICLE X V-GSEN ERA L
No pr~ovision in this code shall be inter~pretedl or appllied in such a
manner as to promote monopolies or to elimlinat~e, discriminate I
against, or oppr~ess small enterprises.
TIhis code and all its pr1ovisions is subject to the aIpproa~l of th~e
President of the United SCtates as prov,\idedt in thle Indcustrial Recovery
Act and is subject t~o such changes or mlodificati~nS, froml timle to tim~e,
as the President may direct inl ncor~da nce wnith Sectionl 10) (b) of the I
National Industrial Recovery? Act.
This codes may be amlendedl by a tw~o thirdcs affirmative vote of the
members of the code, provided' that th~e amendment is approved by
thet~ Board of Control andl the Pr~esidlent of t~he United States.