Registry No. 1114-11
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
HARDWARE AND SUPPLY
AS SUBMITTED ON AUGUST 31, 1933
UN V. OF Ut. ~i.
The Code for the Hardware and Supply Merchants 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
WASHIINGTON : 1933
Ebr sale by the Superintendent of Documents, Washington, D.C. - Price 5 conts
NATIONAL HARDWARE AND SUfPPLY AS80CIATION
SUBMITTED BY NATIONAL HTARDWARE & SUPPLY ASSOCIATION
Application to thle President of the United States for a Code of
Fair Competition for the Hardwar~e and Supply Merchant,, under
the provisions of Section # 3, Title #- 1 of the Act entitled "LAn
Act to Encourage National Industry Recovery, to Foster Fzair Comi-
petition and to Provide for the Const~ruction of Certain Useful
Public W7~orks for Sever~al Purposes."
To e~ffectuate the policy of Title 1 of the National TIndustrial
Recovery Act, the following pr~ovisions are establishied as a Code
of Fair Competition for the Hardware and Supply Mlerchants..
I. LABOR CODE ,
Collective Btarga~inin~g.-In conformity with~ the: provisions of
Section 7a of the National Industrial Recovery Act, the attitude of
these M~erchants with respect to the labor of employees shall be as
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from thle interference, r~estr'aint., or coercion of emloyers of
labor, or their agents, in the designation of such: representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee. and no one seeking employment shall be3
required as a condition of employment to join any company union
or ton re~frami fronm nolmng,_ organnizmg, or, a.ssis~ting a labor orgalniza-
tion of his choosing.
(c) That employers shall comply with the mraximunm hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
2. Child lab~or.--On and after the effective date of this Code no
person under the age of sixteen years shall be employed, except that
persons between fourteen and sixteen may be employed for not to
exceed three hours per day, and those hours between 7 a.m. and
7 p.m., in such~ worki as will not interfere with hours of day school.
3. Ma~im~num, hozurs.--(a) On and after the effective late of this
Code no individual or organization of this class shall work any em-
ployee (except executives whose salaries are not less than $30.00 per
week, and except outside salesmen and except maintenance and out-
side delivery employees, which maintenance andj outside delivery
employees may be employed forty-eight hours weekly or more, i
paid time and. one third for all hours over forty-eight hours weekly)
for more than forty-four (44) hours per week, excepting at Christ-
mas, inventory, and other peak periods employees may work forty-
CODE OF FAIR COMPETITION
eight (48) hours per week for a maximum of not to exceed three
weeks in each six months.
It is understood and agreed if any other group of merchants (ext-
cept food merchants who have been granted 48 hours week~ly orare
granted hours in excess of these stated above that these samehor
will automatically apply to the merchants coming under this Code.
(b) On and after the effective date of this Code no individual or
organization of this class shall reduce the hours of any store or serv-
ice operation to below fifty-two (52) hours in any one (1) weekr, un-
less such hours were less than fift~y-two (52) hours per week before
July 1, 1933, and in the latter case not to reduce such hours at all.
(c) The ma~ximlum hours fixed in paragraph 3 (a) shall not apply
to employees in towns of less than 10,000 population (when such
towns are not part of a larger trade area), in which cases forty-eight
(48) hours weekly for all employees is permitted.
4. Miinimunwn. roage ---On and after the effective date of this Code
MCerchants shall establish minimum weekly rates of wages for a work
week specified in Section 3 (a) as follows:
(a) Within cities of over 500,000 population (by reference to the
1930 Federa~l census) or in the immediate trade area, of such cities
at t.he rate of $14.00 per week.
(b) Wit~hin cities from 100,000 to 500),000 population (by reference
to the 1930 Federal census), or in the immediate trade area of such
cities at the rate of $13.00 per week.
(c) Within villages, towns, or cities with a population of 10,000
to 100,000 (by reference to the 1930 Federal census), unless they are
included in a trade area as defined by clause (a) or (b), at the rate
of $12.00 per week.
(b) The minimum wn.ges that shall be paid by employers to any of
their employees shall be at the rate of $1.00 per week less in the
Southern section of the trade then the rates specified in paragraph
(a), (b), and (c) of Section (4).
The South is defined as the following states--Virginia, West Vir-
ginia, North Cfarolina, South Carolina, Georgia, Florida, Kentucky,
Maryland, District of Columbia, Tennessee, Alabama, Mississippi,
Arkansas, Louisiana, Oklahoma, Texas.
(c) In the entire United States, in villages, towns, and cities under
10,000 poptdlat~ion (which are not a part of a larger trade area) to
increase all wages but not less t~ha~n 20%~ provided that this shall not
require wages in excess of at the rate of $11.00 per week nor permit in
cities or towns of from 2,500 to 10,000 (which are not a part of a
larger trade area) wages less than a~t the rate of $10.00 per week.
Except that on and after the effective date of this Code, junior
employees between the ages of sixteen and eighteen years, inlzusive
may be paid at the rate of $2.00 less for a week work (as provided
in section 3 (a)) for the first twelve months of their employment and
at the rate of $1.00 less for the second twelve months of their employ-
muent, and also except that apprentice employees more than eighteen
years of age mlay be paid at the rate of $1.00 less for a work week for
the first twelve months of their employment, provided that the mini-
mum compensation to either junior or apprentice employees shall
not be less than at the rate of $10.00 per week.
5. Not to reduce the compensation for employment now in excess
ofE the minimum wages hereby agreed to (notwithstanding that the
hours worked in such employment may be hereby reduced) and to
increase the pay for such employment by an equitable readjustment
of all pay schedules.
6. Not to use an subterfuge to frustrate t.he spirit and intent of
this Code, which is, among other things, to increase employment. by a
universal covenant, to remove obstructions to commerce, andt to
shorten hours and to raise wages for the shorter week to a living
7. Not to increase the price of any merchandise sold after the date
hereof over the price on July 1, 19833, by more than is made necessary
by the actual increases in production, operating, replacement, or
invoice costs of merchandise, ori by taxe-s or other costs resulting from
action taken pursuant to the Agricultural Adjustmentl Act, since
July 1, 1933, and, in setting such price increases to give full weight
to probable increases in sales volume and to refrain from takings
profiteering advantage of the consuming p~ublic.
8. WThere costs of executing contrnets entered into before June 16,
1933, in this tradce to purchase goods at fixed prices for delivery
during the period this Codle shall be in effect. ar~e incre-asedl by the
application of the provisions of thle National Industrial Recovery
Act, and it is deemed eqluitable and- promotive of the purpose of the
Act that appropriate adljustmnentsi of such~ contracts to- reflect such
increased costs be arrivedl at. by arbitranl proceedings or otherwise.
9. Unfair Comyetition.--On "and, aft er t he effect ive date of t his
(a) No individual or organization selling goods at retail shall sell
or offer for sale any merchandise at less than the net invoice delir-
ered cost or current. market delivered cost, whichever is lower, plus
10%~r to insure that labor costs shall be at least. partially covered.
(b) Nothing in t~he p~recedling paragraph, hiowever, shiall be inter-
pre ted to prevent bonat fide seasonal elearannces of merchandise so
advertised or plainly marked or of highlyl perishable or damaged
goods so advertised or plainly marked nor1 shall any individual or
retail organization for the purpose of a bons fide discontinuance of
the handling of any line when so advertised or plainly marked be
stopped from selling said merchandise at less than net, invoice de-
liver~ed cost plus 10% to insure that labor costs shall be partially
(c) Advertising (written, printed, radio, or display), wrhich-mis-
represents merchandise, credit terms, values, policies, or services; or
selling methods, which~ tend to mislead t~he consumer, shall not be
made by any individual or organization selling at. retail.
(d) Organizations or individuals selling goods at. retail shall be
free to advertise truthfully their own goods. policies, services, and
their own prices but reference to the goods, policies, services, or prices
of competing retailers shall not be made.
(e) No individual or organization selling goods at retail shall
make use of, participate in the use of, publish, or broadcast any~
staemet wich lays claim to a, policy or continuing practice o
generally underselling competitors.
(f) On and after the official publication dlate of this Code no
individual, store, or organization selling goods at retail shall buy
or contract to buy convict- or prison-made products, nor shall they
sell such goods after December 31, 1933.
(g) This Code recognizes that there are many practices which
have grown up locally in the retail trade which are productive of
unfair competition and which are not dealt with specifically in this
Code, for example:
a. Commercial bribery
b. Predatory price cutting
c. Unfair credit practices
d. Free goods
These and other unfair practices may be made the subject of local
regulations not inconsistent with the provisions of this Code to be
prepared in each trading area by the Local Retail Trade Commlit-
tee as provided in paragraph 10 (c). Such local regulations, upon
approval by the Local Retail Trade Committee, shall be filed with
the National Ret~ail Trade Committee and, when approved by the
Administrator. shall, for a~ll purposes within the area for which
adopted, have the same force and effect as this Code itself; and any
practices deemed unfair under said regulations shall be 'deemed
unfair under this Code. W'hen these and other unfair practices
are found to be national in character they may be made thle subject
of national regulations to be prepared by the National Retail Trade
Committee and such regulations upon being approved by the Na-
tional Retail Trade Commnittee shall be fledZ with the Admmnistrator
and, when approved by him, shall have the same force and effect
as this Code itself; and any practices deeanled unfair under said
regulation shall be deemed unfair under this Code.
10~. Me~thodJ o' Disptribu tion,._-It is recognized that there is a large
class of hardware and supply merchants who are confronted with
competition from the jobber, chain and syndicate stores, mail-order
houses, deparag atomenti sorsbuplding, mill and facitory supply houses,
garageandatome oties supplyg houses and janitory supply houses.
Such competitors are in the main privileged to buy at the lowest
It is therefore within the scope of this Code that in order to meet
such competition and to place the merchandise in the hands of the
consuming public at the lowest possible prices, all hardware and
supply merchants who are or may become able to order in sufficient
quantities shall be entitled to purchase their requirements from the
manufacturer at the lowest prices paid by the jobber.
A. Hardware distributing costs of the merchants shall be based
1. Manufacturer's prices to the jobbers at the lowest distributing
2. Manufacturer's prices to the hardware and supply merchants
at the lowest distributing price.
3. Prices to the retail dealers by the jobber or manufacturer at
a fair mark-up over distributing prices.
In regard to the above it is meant that the distribution shall not
handicap the hardware and supply merchant from endeavoring to
m~eet the competition as offered by job~bers, chain and syndicate stores,
mail order houses, department stores, building, mill and factory sup-
ply houses, garage and automotive supply houses and janitor supply
11. ABdminzistration.- (a) To effectuate further the policies of the
Act, a National Ret.a.il Trade Commnittee is hereby designatedi to co-
operate with the Admzinistrator as a planning and Fair Practice
agency for the retail trade. This Committee shall consist of two
representatives of each National organization subscribing now or
later to this Code, elected by a fair method of selection, to be ap-
proved by the Administrator, and three members without vote ap-
pointed by the President of the United States. Such agency shall
from time to time present to the Administrator recommendations
based on conditions in their trade as they may develop from time to
time which will tend to effectu~ate the operation of the provisions
of this Code and the policy of the National Industrial Recovery Act.
(b) Such agency is also set up to cooperate with the Administr~ator
in making investigations as to the functioning and observance of any
provisions of this Code, at its own instance or on complaint by
nyperson affected, and to report the same to the Administrator.
() For each local trading area, as defined by thle 1930 Federal
census, and for each such other trading district as cannot be included
in a trading area thus defined, there shall be set up a Local Retail
Trade Committee whose membership shall include not more than
two local representatives of each national organization represented
on the National Retail Trade Committee and not more than two rep-
resentatives of each such other division of retailing as may be im-
portant locally, all such members to be elected by a fair method of
selection. The membership of all Local Retail Trade Conunit~tees
shall be certified to and subject to approval by the National Retail
Trade Committee, and shall report their regulations to it. It shall
be the duty and responsibility of such Local Retail Trade Commit-
tee to draft such regulations not inconsistent with the provisions
of this Code as may be necessary to make the provisions of this Code
applicable to the distribution of all merchandise at retail within
each respective district., but the essentials set forth in this National
Retail Code shall be the minimum to be observed in each locality.
The regulations of each such Local Retail Tradle Committee shall be
drafted and administered without discrimination against any indi-
vidual retailer or class of retailers so that the spirit of fair and
equitable treatment may prevail. Appeal from their decisions may
be made to the National Retail Trade Committee.
(d) This Code and all the provisions thereof are expressly made
subject to the right of the President in accordance with the provi-
sions of Clause (10) (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under Title I of said Aict. and specifically
to th~e right of the President to cancel or modiify his approval of this
Code or any condition imposed by him upon his approval thereof.
(e) Such of the provisions of this Code as are not required to
be included therein by the National Industrial Recovlery A~ct may,
with the approval of the President, be modifiedl or eliminated as
changes in the circumstances or experience may indicate. It is con-
temiplated that from time to time supplementuryv provisions to this
Code or additional Codes shall be submitted for the approval of
the President to prevent unfair competition in price and other
unfair and destructive competition practices and to effectuate the
UNIVERSITY OF FLORIDA
gi 3 1262 08856 0783
.other purposes npd~ policies.-e4 ,Title. I pl;:the Niatricialy gi
Recovary: Act: consistent with, the. ''r~x~ its tereMDt' Il;'f
S(f) It is Autualya~greeql that an if~lo~j~la~rtionf thySj~
modified wijt.houtthunnnu nsn fhe aiod
Association~s subscribing her~eto, then and~Jjt j~id >kakoeventt; .theasr
provisions. of this Codre .may be reopened -andt e~~haidrin shat
granted within thirty ,(30) d~ays: to anky on. all l d.i~the ~.: ii~ssbiations
:subscribing hereto. -. i .. :T.'idf.t ys)C ?rrI :a
12. General Statutory Provisil~.;ohins. Nothmg. m ith ag~gaitt ini
posed by this Code is of a discriminatory nature :. All:1 pay-e
posed in this Code are to protect consumers, Icomapett~Sitor
and others and are in the; furthe~rane -o~f- he ~pub;i~i.iln~t
No provisions will stifle th~i~nitiative of any 'buslneJss
-to those Fair Competition Pr;actiides.:.; .i
The Associgtions representing this code imposed nioieqta
strictions on admission to membership in theit. organisattiion 'lia@6~:;l
truly representative of the Retail DryG:Coods, Departmeadt, Ope-'lI~
cialty Shopj Mail Order, 1Men's Clothing and; furnialithign *FrWdb- ,.;i
ture and Home Furnishings, HardwaLre aBndl Shoe. Store r~adlei
The Code which they offer is not designed to promote monrpol;~I!d~ olkindr '
to eliminate or oppress small enterprises and will not oper~atentb vl$
criminate against them. o
I[t is our conviction that this Code will tend to effei~Cjr~t~ui'lte h4
policy of Tlitle I: of the National Indus~trial R~ecovery IAeth
3. Effective Daute.-T'Ihe. effectiver 'date of tfhis Code wili be ;da
week after its approval by the.Presiden~t .,:
NBrroxAL HanbDWARE. AND BUWPPlY'8~ufi~ aS