UNIV. OF FL LIB. ~us.
1 I E DO URr PART
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.. C.
Prie 5: cnts)i
MOTION-PICTURE AND THEATRE
SUPPLIES AND EQUIPMENT INDUSTRY
AS SUBMITTED ON AUGUST 29, 1933
.REGISTRY No. 1659--3-02
The Code for the Dealers in
Motion-Picture and Theatre Supplies and Equipment 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
Application to the President of the United States for the Approval of a
,National Industrial Recovery Code of Fair Competition for the
Dealers in Motion-Picture and Theatre Supplies and Equipment
under the Provisions of Section 3, Title I, of the Statute Entitled
"An Act to Encourage National Industrial Recovery, to Foster
Fair Competition, and to Provide for the Construction of Useful
Public Works, and for Other Purposes"
The purpose of this code is to effect~ua.t~e the policy of Title I of The
Nat~iona~l Industrial Recovery Act to remove obstructions to the free
flowr of interstate and foreign commerce and to promote cooperative
action to reduce and relieve unemployment, improve standards of
labor, eliminate unfair competitive practices, avoid restriction of pro-
duction, and to prohibit monopolies, increasee purchasing power and
rehabilitate industry, particularly as it pertains to the dealers in
mot~ion-picture and theatre equipment and supplies wtih the~ express
purposes of revitalizing it upon a profitable basis for all dealers
engaged in this field by er~adicating prevalent unethical and unfair
practices which in t~he past and at present are proving destr~uctive.
The following is adopted as a code of fair competition for the dealers
in motion-picture an~d theatre equipment and supplies in the United
The provisions of this code shall not be interpreted or adminlistered
as to eliminate or oppress small enterprises or to discrimma~te against
1. The N\ational Indust~rial RecoveryJ~ Act whJ~en referred to in this
code shall be called t~he "Act."'
2. The term "dealer" refers t~o any person, firm, association, or
corporation engaged in the business of repairing equipment or buying
and selling equipment a~nd supplies for the theat~re. and other places
where motion pictures may be exhibited without regard to whether
or not a stock of merchandise is maintained.
3. The terms "'equipment" and "supplies"' are t~o be deemed to
include not only equipment and supplies which can only be used in
connection with theatres and other places where motion pictures may
be exhibited, but also anyv equipment and supplies which, although
useable for other purposes, are sold t~o be used in connection with the
exhibition of motion pictures, or for use in theatres, auditoriums, etc.
4. The term employeeve" as used hler~ein shall include every person
emiployed by any dealer as above defined.
5. The term "'persons"' as used herein shall include without limi-
tat~ion natural persons, partnerships, a~ssociatbions, and corporations.
6. The term "cost"' as hereinaft.er used is defined as t~he cost of
direct labor plus the invoice cost of materials (excepting any cash
discounts or rebates allowed by the manufacturer under terms of sale
to all dealers) plus transportation, cartage, and hauling, plus an ade-
quate amount of overhead,, including an amount for the use of any
plant facilities employed, as determined by cost accounting methods
recognized in thle industryv and approved by the. Admninist~rat.ion Board
constituted for the enforcement of this code as provided hereinafter.
7i. The .term "President refers to the President of the United
8. The termi "effective date as used herein is defined to be the
10t~h day after this code shall have been approved by the President
of the Unit~ed States.
AIRTICLE II--LABOR Provisions
The followingg provisions shall apply wit~h respect to labor under
1. That emlploy~ees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the! interference, restraint, or coercion of empIloyers 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 bargaaining or other mutual aid or protection.
2. Tha~t, no employeeP arnd no~ orne seeking employment shall be re-
quired as a condition of em~ploymnent to join any company union or
tor refra- fronm inommg, orgarnizing, or assisting a labor or~gammzation
of his own choosing.
3. That employers shal comply with the maximnum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
1. The minimum wage or salaryI to be paid by Dealers to employees,
including every class of employees, employed on a half-mont~hly basis,
shall be at the rate of sixty-fi~ve dollars per month.
2. T'he minimum weekly wage to be paid by Dealers shall be fifteen
3. The minimum wage to be paid byT Dealers to employees hired
on an hourly- basis shall b(e forty cents per hour.
43. Salesmen may be! employed on a straight commission or salary
ndu 00minisillSSG DRSIS.
MAXI1MUMWJ HOURS OF L;ABORl
1. 1Employees, except those engaged as traveling salesmen, emer-
gency repair men, and service men, shall not work more than 40
hours per week, nor 182.5 hours during a calendar month of 31 days.
2. These limitlt~ions shall not apply in cases of emnergency, but at
the end of each calendar month every dealer shaall report to the Ad-
:minist~ration Board her~einuft~er provided for, in such detail as may
be required, the number of man-hnours worked in that mnont~h for
emerg,encyv reasons and the ratio which said emergency man-hours
bears to the total number of man-hours of labor during said mont~h.
MINIMUM AGE LIMIT
Dealers shall not employ any person under the age of 18 years.
ARTICLE III -ADMINIWSTRATION
1. With the approval of the President there shall be constituted
an Administration Board for dealers in motion picture and theatre
supplies and equipment to consist of one duly authorized representa-
tive from the Independent Theatre Supply Dealers' Associat.ion who
shall be its President and one duly authorized representative fromt
National Theatre Supply Company who shall be its President, and
not more than 3 members without vote appointed by the Admimis-
trator of the! National Industrial Recovery Administration.
2. With t~he approval of t~he President such Administration, Board
shall be empowered to assist the National Recovery Admimistrator
in administering theprovisions of the Act as set forth in this code;
may initiate and shal consider such recommendations and regula-
tions and interpretations, including those relating to trade practices,
as may come before it a~nd in such case shall, in deliberations held
without publicity and recorded in writing, submit to the National
Recovery Administrator its advice setting forth in each instance
whether said Administration Board unanimously approves or unan-
imously rejects or is disagreed upon a proposal, and in such event the
National Recovery Administrator shall decide.
3. Such Administrat~ion Board shall also supervise thze application
of this code and shall notify any and all persons subject to the jurisdic-
tion of this code of its provisions and regulations anzd shall designate
such agents and delegate: such authority as may be necessary to effee-
tuat~e such purposes.
4. Such Administra~tion Board is also set up to cooperate wcith the
Administrator in making investigations as to the functioning and
observance of any provisions of this code, at its ownP instance or on
written and signed complaint by any person affected, and to report the
same to the Administrator.
5. If formal complaint is made to the Administrat~ion Board that
the provisions of this code have been violated, by any dealer, the proper
supervisory agency shall investigate the facts and to that end may
cause such examination or audit to be made as may be deemed
6. As and when any question shall b~e deliberated upon by t~he
Administration Board with respect to the unfair trade practices by
dealers which involve manufacturers of such equipment, twro duly
authorized representatives fromt The Theatre Equipment and Supply
151anufacturers Association shall thereupon and only with reference
to such questions in the interim become members of said Admlinistra-
7. The Admlinistration Board may from time to time present to the
President recommendations based on conditions in t~he industry as
they may develop from time to time which will tend to effectuate the
operation of the provisions of this code and the policy of the Act.
8. After the completion of any investigation that the Admlinistra-
tion Board may make upon the signed complaint of any person, if
the findings of the investigator show that the complaint was un-
founded, the party making the complaint may be assessed the expenses
of the investigation and the cost of the same shall be billed imme-
diately a~nd shall be payable upon receipt of the statement. If the
investigators report that the complaint is warranted and justified,
the pa~rt~y guilty of violation of the code, or any amendment thereto
or any rule or regulation issued thereunder and approved by the
Administrator of the National Indust~rial Recovery Act shall pay all
expenses of the investigation.
9. Any dealer may participate in a~ny endeavors of the Administra-
tion Board in the preparation of a~ny revisions of, or additions or
supplements to, t~his code byr ccepnti;ng and paying the proper pro
rata share of the cost and responsibility of creating and administer-
10. The Administration Board is hereby designated the agency for
admi nniteri ng, sulpervising, and pmmromting the performance of the
provisions of this code for dealers in motion-picture theatre supplies
ARTICLE I~V--PARTICIPATION IN CODE
A9ny existing dealer as herein defined, or dealer who shall become
such hereafter, whether a member of any association or not, may
participate in the code and any subsequent revisions, additions, or
amendments thereof, by indicating his intention of fully subscribing
ton t~he provisions of t-he code arnd by assulming the responsibilities of
ARTICLE V--UNFAIR COMPETITION
1. No dealer shall sell at a price destructive of the capital investment
and likewise of th~e~ earning power of labor; and no dealer shall enter
upon or engage in an price cutting.
2. No dealer shall sell, offer for sale, or advertise any service, or
exchange any product, at a price or upon such terms or conditions
that will result in the customer paying for the services or goods re-
ceived less than the. "cost"' to the dealer, determiined in accordance
with the iiniform and standard method of defining coststs, herein-
before prescribed, provided, however, that, dropped lines of merchan-
dise, seconds, or inventories which must be: converted into cash to
meet emergency needs ma~y be disposed of in such manner and on such
terms and conditions only as the Administration Board may approve
and as are necessary to move such products in the buyer's hands.
3. N~o dealer shall sell directly or indirectly by any means whatsoever
any service or any product of the industry covered by the provisions
of this Article at a psri~ce lower or at discounts greater or on more
favorable terms of payment than those provided in current schedules
set up by the Adnnilstration Board with the approval of the Admin-
istraitor of thbe National Recovery Administration.
4. Nothing in the preceding paragraphsu shall be deemed to prevent
the extending of quantity discounts for quantity purchases, provided,
however, that such quantity discounts must be predicated on actual
quantity purchases and not on estimated requiremients over a period
of time, and provided that no increased discounts for quantity shall
.reduce the price below t~he fair minimum prices defined in paragraphs
1, 2, 3 of this article.
.5. Quotations a~nd billings to purchasers by Dealers shall be at unit
prices. The: practice of lu mp-su m bidding and billing shall be deemed
to be unfair competition.
6. The following practices shall also be deemed to be unfair compe-
tition within the meaning of the Act:
A. Advertisinga (written, verbal, printed, radio, or display) which
misrepresents merchandise, values, or services; or selling methods
which tend to mislead the consumer.
B. Reference in Dealers' advertisements to the goods, services, or
prices of competing retailers shall be regarded as a~n act of unfair
C. The use of, participation in, publishing or broadlcasting of, any
statement or representation which lays claim to a policy or continuing
practice of generally underselling competitors.
D. The sale by Dealers of any product of a penal institution.
E. The giving of secret rebates, refunds, credit, or unearned dis-
counts, whether in the form of money or otherwise, or the giving of
premiums or extending to certain purchasers special services or privi-
leges not extended to all purchasers under like terms and conditions.
F. The offering of allowances on trade-in equipment in excess of
the allowances scheduled by t~he Administration Board shall be
considered a violation of this code. The Administrat~ion Board shall
set, from time to time, a schedule, of allowance prices on used equip-
ment, such prices to be based on age of equipment and model of same.
Identifying factor shall be serial number of such equipment taken in
G;. The defamation of a competitor by words or acts, falsely imput-
ing to him dishonorable conduct, inability to perform contracts, or
questionable credit standing, or by the false disparagement of the
grade or quality of his merchandise.
H. The payment to an employee of a, customer or prospective
customer of a, commission or consideration of any character for the
purnrpos of induci~ng, or comnpensating for, a sale.
I. The absorption of freight charges or any portion t~hereof.
J. Commercial bribery in whatever form it may be attempted,
whether by givmig cornunissions, prizes, premiums, or excessive enlter-
tainment as an act of commercials bribery to anyone in connection
with t~he sale, purchase, or use of merchandise, or as an inducement
th ere to .
K. Sale or contract to sell in violation of the provisions of this
Article shall be deemed an unfair method of competition within the
meaning of the Act.
L. The practice of rebuilding used equipment and selling it as new,
the changing of any factory serial number, shall be a violation of this
10. No Dealer shall misrepresent, or make oral or written guarantees
that conflict with or exceed the manufacturers' guarantees or recom-
mended applications of his product.
N. Original ma nu facturers' identification make or number on
equipment or accessories shall not be altered.
ARTICTE VIZ-STATISTICB AND REPORTS
1. With a view to keeping the President of the United St~ates and
the Administrator informed as to the observance or nonobservance of
this code and as to whether the.dealers are taking appropriate steps
to effectuate in all respects the declared policy of the National Iridus-
trial Recoveryv Act, each dealer shall, not less than once in each year,
prepare a~nd file with the Administration Board an earnings statement
and balance sheet in a form approved by said Administration Board
or in a form acceptable to any nationally known banking institution.
Each Dealer shall likewise prepare and file with t.he Administration
Board such current information concerning w~age and salary rates,
hours of work, stocks on hand, sales and prices as t.he Administra~tion
Board may from time to time require for the purpose of determining
conditions within the industry. The failure to furnish the required
data, or the furnishing of false or misleading information, or the
making of false statements relating thereto, shall be regarded as a
violation of this code of fair competition.
2. Except as otherwiise provided in the National Industrial Re-
covery Act all statistics, data, and information filed in accordance with
th2e provisions of Article III shall be confidential, and the statistics,
data, and information of one dealer shall not be revealed to any other
dealer except that, for the purpose of facilitating the administration
and enforcement of the provisions of this code, t~he Administration
Board or their duly authorized representative shall hav\e access to
any and all statistics, data, and information that may be furnished in
accordance with the :provisions of this code.
3. The Administration Board shall establish uniform credit prac-
tics, ncldin a nifrm lan of installment. sales, which when
approved by the mrembersofteA iitrtnBadadbyth
Administrat~or of the National Industrial Recovery Act shall be
binding upon all dealers.
ARTICLE VII -A AMENDMENTS
1. This code and all the provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provision of
clause 10 (b) of the Na~tional Industrial Recovery Act, from time to
time to cancel or modify any order, approval, license, rule, or regula-
tion, issued under T'itle 1 of said Act, and specifically to the right of
'the President to cancel or modify h~is approval of this code or any
conditions imposed by him upon his approval thereof.
2. Such provisions of this code as are not required to be included
therein by t~he National Industrial Recovery ALct~ may, with the
pproval of t~he President, be: modified or eliminated as changes in
circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this code or
additional codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and destruc-
tive competitive practices and t~o effectuate the other purposes and
policies of Title 1 of the Nat~ional Industrial Recovery Act consistent
with the provisions thereof.
3. This Code shall become effective not later than ten (10') days
after its approval by the President..
Violations by any person subject to the publication of this code or
any provisions of this code, or of any approved rule or regulation
issued thereunder, or of any agreement entered into by himt wit~h the
aforementioned Admzinistration Board to observe and conform to
this code and said rules, is an unfair method of competition and the
offenders shall be subject to the penalties imposed by the N~ational
Industrial Recovery Act.
ARTICLE IX--SAVING PROVISION
If any court of competent jurisdiction shall finally determine that
any Article or section of any Article in this Code shall be invalid, all
other Articles and sections of this Code shall nevertheless remain and
continue in full force and effect in t~he same manner as though they
had been separately presented for approval by thze President.
NATIONAL THEATRE SurrLY CourdAN1r, INc.,
By W. N. G REEN, Pre~sident.
INDEPENDENT THEATRE SUPPLY
DEALERS' AssoCIATION, INC.,
By J. E. RomIN, President.
Digitized by the Interniel Arohlive
1n 2011 w~iih iundinig from
Un1IVErSIty of Florida, George A. Smnalhers Libraries w~iih support from L'/RASIS an1d Ihe Sloan Founldation
hlipl: ww~w.archive.Org/details/codeoffaircomp t6Ou.
UNIVERSITY OF11111 FLORIDA1111 11