Reegistr No. 505L3
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~~;J,:;' NAPTI jNAL: RECOVERY ADMInNISTRATION
r'~iPXaI ~ ODE O0F FAIR COMPETITION
e OR THE ,
8TURE~lz~ PUBLISHERS AND
;*l,IMP&RT RSB INDUSTRY
j`; 8 SUBMITTED ON AUGUST 30, 1933
:st 90 QU ART
UN. v OF IS
; "b~ :Ihd Cole-for the~'Picture Parblishers'and Importers Industry
I jlis.iiresqu form mnerely re~ects the proposal of the above-mentignque
uIjdpstry, p~iad nons 6f th'e provisions conat 441thqrkinrl cre,.
2='~~." ~Cbe ~rt~:U~regarded a havin reeve proa
-c~~f ;, t he Na~t~i notRA~iovery( Ad &d#6
.o as I gr to this ind
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PICTURE PUBLISHERS AND IMPORTERS ASSOCIATION
THE FOLLOWING IS THE CODE OF FALIJR COMPETITION
UNDER THE NATIONAL INDUSTRIAL RECOVERYY lACT
(NIRA) ADOPTED BY THE PICTURE P'UBLISH1ERS AND)
a. This code is set up to effectua~te the purposes of' the "' NIRtA for
Picture Publishei's and Picture Imnporters. It has to do with unfair
competition practices and administration machinery for enforcing
b. This association is truly representative of the entire business
of publishing and importing pictures.
c. This code does not promote a, monopoly.
d. This code does not oppress nor dliscriminainte against any small
e. The code provides that the employer will comply with matxi-
mum hours, minimum rates of pay, and other colnd-itionls of empilloy-
ment approved by the President of the Unitedl States.
Each firm or individual in this group, as distinctive from every
other group, trade, or industry, includlesi all those who publish or
represent publishers, and import or represent importers, or are! en-
gaged in the publication or imlportation of "L Pictures for resale.""
The expression Pict~ures for Resale among publishers and im-
porters has always been understood to mean pictures in the form
of the pictorial andl of the graphic arts for resale through art deealers
as distinguished from pictures in any form gratuitously distributed.
Publishers and Importers of pictures are primarily organizations
supplying employment and support--
First. To originating artists
Second. To others as follows:
The individual character of a work of art necessitates the use of
many methods, each differing from the other to obtain thle most
This group provides business and employment of labor in miany
diversified plants and to artisans all entirely apart and beyond the
control of this group.
A. The Executive Committee consists of the Board of Directors
and the Officers.
The Offcers shall be The President, Vice President, Secretary,
The Secretary-Treasurer may be one and the same.
The Board of Directors shall consist of three members.
B. Officers and directors shall be elected by a majority vote and
by ballot of those who shall attend a meeting called for this purpose.
Notice of such meeting shall be sent by mail to the last known
address to all those mentioned in Article II.
Each firm~ and/or an individual engaged in business of his own
shall be entitled to only one vote at all meetings.
C. An election of permanent officers shall be held after t~he code
has been approved by the Government.
P-2. POWERS OF ADMINISTRATION
A. To administer the provisions of this code.
B. To adopt Rules and Regulations for t~he enforcement thereof.
C. To entertain and hear complaints arising out of any violation
of this code or the NIRA., and, where such complaint. cannot be dis-
posed of ot.herwise., to cause such complaint. to be arbitrated as here-
inafter provided. Charges must be submitted to the Executive Com-
mittee in writing and all evidence must be in writing.
D. To initiate proceedings before thle appropriate governmental
agencies to prevent and,/or punish violations of this code.
E. In order that the President of the United States may be in-
formed with respect to the observance or nonobservance of this code
by those to whom the same is applicable and whether they are com-
plying with the policy and provisions of the National Industrial
The Executive Comlmittee and/or its agents shall have access to
all places of business maintained by any firm or individual to whom
this code is applicable and examine and determine the methods of
cost accountmig, selling, mnvoicemg, and general business practices
pertaining t~o any complaint., and may t~ake such steps as it may deem
advisable t~o effect such changes in methods and practices as shall
place the business of any such firm or individual upon a fair com-
It is anticipated in all cases requiring investigation that the exec-
utive committee shall appoint as its agent or agents any person or
persons entirely outside of this group, or those who are not directly
competitors of the firm or individual.
F. The Execultive Comnmitteae has powler.--(a) To establish rules
and regulations for the disposal of distress merchandise in such a
manner as not to disturb the stability of the picture market.
th xctv(b) To consign such noncompetitive items as in the judgment of
the xectiveComittee will cause no possible disturbance t h
stability of the picture market.
FAIR TRADE PRACTICES
A. Consignm?7ents.--There has developed a growing evil comlmon-
ly k-nown as Delivery of pictures on consignment or memnorandum
to retailers, distributors and other~s. This was accomplished by any
of the following methods:
1. By billing on consignment. or on miemorandum.
2. By agreement to take merchandise back that remained unsold.
3. By agreement that merchandise unsold after a given time may
be changed for other Imerchandise.
41. By agreement that merchandise unpaid for within a given time
may be retained or returned.
5. By making the distributor or dealer or retailer an agent of
the Publisher or Imlporter in the sale of merchandise.
6. And by various other agreements designed to weaken or modify
the usual terms upon which an order for the producing and sale of
merchandise is given.
The foregoing practices result in unfair competition and are
B. Sampyle S'hipmentslt.--Submission of samples of not more than
one copy of a1 subject may be made with the understanding that such
samples are t~o be retulnedl within seven days after receipt of same,
but on condition that suchl samples will not be offered for sale at
retail. All bills coveringr such samples must bear a notice to this
Noncompliance with aforementioned clause results in unfair comn-
petition and is therefore prohibited.
C. Pri;ces.--It is necetssary that prices once established must be
upheld, and that by establishing prices a, certain minimum price
level must be observed. The publication of pictures as well as im-
port~at.ion of same is a highlyr speculative business and unavoidable
failures must be covered by the profitable or successful publications:
It is considered that t~he m7i nimuml basis for lowest net selling prices
should be as follows:
Milinimum.l Prices ---1. PrintfS published in the U.S. 200%) albovre
cost price to retailers, 100%o above cost price to recognized jobbers.
2. Prints imported into the U.S. 100%~ above cost price to retailers,
50% above cost price to recognized jobber~s.
3. Etchings published in the U.S. 200%0 above cost price to
retailers, 100%~ above cost price to recognized jobbers.
4. Etchings imported into the. U.S. 100qi above cost price to
retailers, 50Cc above cost, price t~o recognized jobbers.
The term cost price among publishers and importers has
always been understood for imported merchandise, cost of merhan
dise including duity, freight, and packing. For merchandise pro-
duced in the U.S., the cost of original, r~oyalty, the, cost of plates,
paper, printing, and coloring.
The sale of merchanndise below the above-stiulallted minilmumi sell-
ing prices results in unfair competition and is thIerefo~re prohibited.
D. Jotbbr.--The recognized jobber in accepting discounts agrees
not to pass all or any part of these discounts on to the dealer.
J-obbers who pass any part of their discount to the dealer are to
be reported to the Executive Comlmittee andi if they do not stop
such practice they shall forfeit thle right to receive jobber's discounts
fromt every member of this group.
Noncompliance with the order to refuse jobbers' discounts to such
firms or individuals results in unfair competition and is therefore
E. Discoutnt~, TIranspor~tation, etc.-1l. All sales are to be made
under the maximumi terms: Paymnent 270 10 dlays EOM, 30 days net.
2. Shipments F.O.B. suchi city in whichl seller is located, or F.O.B.
point of shipment.
3. It is forbidden to give pictures gratuitously or to indulge in
such practices as allowing seven for six "' or thirteen for twelve ",
41. It is forbidden to necept payment. of an account of an amount
lower than the amount shiown on the bill.
5. Nro fall d~at.ing is to be grantedl later than Octob~er 1st, to be
payable strictly net not later than October 31st. N~o fall dating is
to be allowed for shipments made prior to July 1st. There is to
be no discountingi or allowance for anticipation for p~ayments made
before the net due date.
Noncomplliance with any of the foregoinlg cond~itionis results in
unfair competition and is therefore prohibited.
F. A I/o wcance~s for A dvert ising.-A~llowances for ad vertising or
payment.b for space in newspapers, magazines, guides, directories,
progr~ams. or catalogs to b~e used in promoting th~e sale of mer-
chandise is prohibited.
The supplying of cuts, miatrices, electrotypes. window cards. or
other dlisplayv pieces shall, however, not be included in such pro-
G.; ~isrep resentantion.-The re h as been a grow ing practice of
using the innocence and~ inexp-erience of mnany dlealers aind a great
part of the public as a help- to sell inferior merchandise represent-
ing same as original works of art.. Such practices were pult in effect
by various ways and~ metans as:
1. By givingr reproductions names of p~rocesrses which sound like
original hand-print~ed processes.
2. By calling mechanical prints etchings ?', etc.
Such practices are b;oundl to upset the confidence of the buying
public and must disturb the picture market.
The Publisher and/or Importer andi/or their representatives must
offer their merchandise under the truee and commonly known process
Misrepresentation of mer~chandise results in unfair competition
and~ is therefore prohibited.
H. Pirlacy.--The imitation of a publication to such an extent that
it can easily be recognized as an imitation shall be considered as
p~iracy and an unfair business practice which is prohibited.
The Pr~oprietor of a copyright shall be entitled to the exclu-
siive Iirigh)t to copy or reproduce the whole or any essential part of
copyright work and also the right to restrain. anly simulationl or
imitation of subject anld appearance of such work, and thiis shall
apply not only to the person, firm. or corporation producing or
publishing such simlulation or imitation. but also to any person
w~ho shall produce, or offer for sale, or sell, or exhibit, or publish
any such simulation or imiitation.
Any and all complaints, differences, contr~oversies, or questions
arising under or out, of this code or concerning the interpretation
or appreciation of any provision thereof. shall be submitted to
arbitration in accordance with the rules of the American Arbitra-
CI~IIVERSITy OF FIORIDA
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