Approved Code No. 201 Registry No. 1825-59
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JANUARY 12, 1934
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Approved Code No. 201
Registry No. 1625-59
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Approved Code No. 201
CODE OF FAIR COMPETITION
WHOLESALING OR DISTRIBUTING TRADE
As Approved on January 12, 1934
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act., approved June 16, 1933, for my approval of a Code
of Fair Competition for the Wholesaling or Distributing Trade,
and hearings having been held thereon and the Administrator hav-
ing rendered his report containing an analysis of the said Code of
Fair Competition together with his recommendations and findings
with respect thereto, and the Administrator having found that the
Faid Code of Fair Competition complies in all respects with the
pertinent provisions of Title I of said Act and that. the requirements
of clauses (1) and (2) of subsection (a) of Section 3 of the said
Act. have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said Code of
Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
THE WHITE HousE,
January 12, 1934.
The l/hite House.
SIK: This is a report of the Hearing on the Code of Fair Compe-
tition for the Wholesaling or Distributing Trade, conducted in the
Ballroom of the Mayflower Hotel, on November 13, 1933. The Code
which is attached was presented by duly qualified and authorized
representatives of the Trade, complying with the statutory require-
ment.s, said to represent 75 percent in number and over 80 percent in
volume of the Trade which could be included in this code.
The Wholesale Trade according to the Census of Distribution
(1929) is made up of 169,702 establishments with net sales of
$69.291,545,000. However, a substantial portion of the wholesale
trade comes under codes developed under the Agricultural Adjust-
ment Administration, or previously covered under N.R.A. manufac-
turing and distribution codes. A net total of 45,043 establishments
with net sales of $15,323,429,000 are under the Wholesaling or Dis-
tributing Trade Code as submitted. Approximately 460,000 em-
ployees are affected by this code.
It is estimated that somewhat more than 80 percent of the em-
ployees in the Trade were working more than 40 hours per week,
40 percent more than 45 hours per week, and 20 percent more than
48 hours per week. The 40-hour week provided in this code should
result in an increase in total employment of between 10 and 15 per-
cent. This should absorb about, half of the unemployment in the
Trade as compared with 1929.
PROVISIONS OF THE CODE
The code provides for a work week of 40 hours. Outside deliv-
erymen, maintenance men, outside repair service men, and installa-
tion men are permitted to work 48 hours per week. Provision is
made whereby an employer may work an employee such hours as
may be necessary in excess of the hours mentioned above if time and
one third is paid for such additional hours per week.
The rates of pay are $15.00 per week in cities of over 500,000 pop-
ulation, or in the immediate vicinity and $14.00 per week in cities
of less than 500,000 population or in the immediate vicinity.
The trade practices proposed in Article VII of the Code are not
in any respect objectionable. Article VIII, Section 1, provides for
the possibility of setting up price differentials between different
classes of buyers, thus recognizing the functional discount desired by
wholesalers and distributors. All actions of this type are with the
advice and subject to the approval of the Administrator.
The administration of the Code is organized in accordance with
I find that:
(a.) The Code will promote the policies and purposes of Title I of
the Act, including removal of obstructions to the free flow of inter-
state and foreign commerce which tend to diminish the amount
thereof and will provide for the general welfare by proiimting the
organization of industry for the purpose of cooperative action among
the trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
visions, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of prieuction (except as
may be temporarily required), by increasing the consumptionl of
industrial andl agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor and otherwise rehabilitating industry.
(b) Said Trade normally employs more than 50,000 employees;
and is classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of Title I of the Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the 26 applicant groups
are trade groups truly representative of the aforesaid Trade; and
that said groups impose no inequitable restrictions on admission to
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, I recommend that the Code be approved.
HUGH S. JOHNSON,
A dm i ;sfrator.
JANUARY 1, 1934.
CODE OF FAIR COMPETITION
WHOLESALING OR DISTRIBUTING TRADE
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Wholesaling or Distributing Trade, and
shall be the standard of fair competition for such trade.
lWh.olesaler or Distributor.-For the purposes of this Code, a
wholesaler or distributor shall be defined as any individual,
partnership, association, corporation, or other firm, or a definitely
organized division thereof, definitely organized to render and ren-
dering a general distribution service, which buys and maintains at
his or its place of business a stock of the lines of merchandise which
it distributes; and which through salesmen, advertising, and/or sales-
promotion devices, sells to retailers and,'or to institutional, commer-
cial, and, or industrial users; but which does not sell in significant
amounts to ultimate consumers. Modifications or extensions to this
definition or any part of it may be made for specific divisions when
embodied in any appropriate supplemental code or when recom-
mended by the appropriate Divisional Code Authority and approved
, by the Administrator.
The Trade.-The term trade is defined to be the business in
which wholesalers or distributors engage.
Ultimate Consumer-Tr.-The term "ultimate consumer" as used
herein is defined as a purchaser for home and personal use, and not
for use or consumption in trade or business or by institutions.
Emiployeis.-The term employee as used herein includes any-
one engaged in the trade in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
Employer.-The term employer as used herein includes anyone
by whom such employee is compensated or employed.
Pres;denl, Act, Administrator.-The terms President," "Act,"
and "Administrator as used herein shall mean. respectively, the
President of the United States, the National Industrial Recovery
Act, and the Administrator appointed under Title I of said Act.
Population for the purposes of this Code shall be determined by
reference to the 1930 Federal Census.
SECTION 1. Marhnum Hours and receptions.-(a) No whole-
saler or distributor shall cause or permit any employee, except an
employee in an executive, supervisory, technical, or professional
capacity who receives thirty-five dollars ($35.00) per week, or more,
in cities of 500,000 population or over; or thirty dollars ($30.00)
per week, or more, in cities of less than 500,000 population, and except
watchmen and outside salesmen, to work more than forty (40) hours
per week or to work more than six (6) days in any one week (or less
as determined by the Code Authority of any specific trade), except
that any member of the trade may cause or permit:
(b) No employee except those exempted in paragraph (a) of this
Section shall work more than eight (8) hours in any one day, except
that on one day each week each employee may work one extra hour,
but such hour is to be included within the maximum hours permitted
(c) Outside deliverymen, maintenance men. outside repair service
men and installation men to work forty-eight (4S) hours per week.
(d) Watchmen shall work not more than fifty-six (56) hours nor
more than six (6) days in any 7-day period.
(e) An employer may work an employee such hours as may be
necessary in excess of the hours specified in paragraphs (a) and (c)
of this Section if time and one third is paid for all such additional
hours per week.
(f) The hours worked by any one employee in any one day shall be
consecutive with the exception of a reasonable period out for lunch.
SEC. 2. Em-ploy.m nt by 'Set,-ral ELimplo/y, :.-No employer shall
knowingly permit any employee to work for any time which, when
totaled with that already performed with another employer or em-
ployers in this trade, industry, exceeds the maximum permitted
ARTICLE I V-WAGES
SECTION 1. Minimllum Rates of Pay/.-The minimum rates of pay
shall be as follows:
(a) In cities of 5000000 population or over, or in the immediate
vicinity thereof, at the rate of fifteen dollars ($15.00) per week.
(b) In cities of less than 500,000 population, or in the immediate
vicinity thereof, at the rate of fourteen dollars ($14.00) per week.
(c) In the South at. the rate of one dollar ($1.00) per week less
than the rates specified above in paragraphs (a) and (b).
The term the South means the following states: Virginia, West
Virginia, North Carolina, South Carolina, Georgia, Florida, Ken-
tucky, Maryland, Distriet of Columbia, Tennessee, Alabama, Missis-
sippi, Arkansas. Loui!iana, Oklahoma. and Texas.
(d) A part-time employee or one paid on an hourly basis shall be
paid at an hourly rate not less than that obtained by dividing the
appropriate minimum weekly wage specified for him in previous
paragraphs of this Section by the appropriate maximum number of
hours specified for him in Article III.
Wages paid during any period to employees on a piece-rate basis
shall aggregate an hourly rate not le s than that specified above for
part-time employees and than paid on an hourly bacis.
(e) Junior employees between the nae.s of 1' and 18 years, in-
clusive, may be paid at the rate of two dollars ($'.1)) less per week
than the ninimulm wage rate per week otherwise, applicable to them
for the first 12 months of their employment; and learners over 18
years of age may, for a period of three months from the date of their
employment, be paid at the rate of one dollar ($1.00) less per week
than the minimum wage per week otherwise applicable to them.
The number of employees classified as juniors or learners combined
shall not exceed the ratio of one such employee to every five employ-
ees or fraction thereof up to twenty (20) or more than one such
employee for every ten (10), or fraction thereof, employees above
(f) Female employees performing substantially the same work
as male employees shall have the same rate of pay as such male
(g) Wages hall be paid weekly or semimonthly in lawful money
or by negotiable check.
SEC. 2. No omplohy,'le whose normal full-time weekly hours prior
to July 1, 1933, are reduced by less than 20% shall have his or her
full-time earnings reduced. No employee whose normal full-time
weekly hour-; are reduced 20% or more shall have his or her full-time
weekly earnings reduced by more than 10%.
ARTICLE A-GENERAL LABOR PROVISIONS
SECTION 1. Mlnimbum Afge Requirements.-No person under 16
years of age shall be employed by any wholesaler or distributor, nor
anyone under 18 years of age, at operations or occupations hazardous
in nature. The Code Authority shall submit to the Administrator
within thirty days a list of such occupations. In any State an em-
ployer shall be deemed to have complied with this provision if he
shall have on file a certificate or permit duly issued by the Authority
in such State empowered to issue employment or age certificates or
permits showing that. the employee is of the required age.
SECTION 2. 1l Itplo/jit c.' Riglhts and Epiilol/-rs' Du:ties.-(a) Em-
ployees 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 employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEC. 3. Precedence of State Lauws.-No provision in this Code
shall supersede any State law which imposes on employers more
stringent requirements as to age of employees, wages, hours of work,
or as to safety, health, sanitary, or general working conditions, or
insurance, or ire protection, than are imposed by this code.
SEC. 4. Recla.ssfication of Employees.-No employer shall reclas-
sify employees or duties of occupations performed or engage in any
other subterfuge for the purpose of defeating the purposes or pro-
visions of the Act or of this Code.
SEC. 5. Posting Code.-Each employer shall post in conspicuous
places, accessible to employees, copies of Articles I to V, inclusive,
of this Code.
ARTICLE VI-CODES AND THE ADMINISTRATION THEREOF
SECTION 1. General and Supplemental Codes.-(a) To provide an
effective procedure for the administration of this code, and all codes
supplemental thereto, the trade shall be divided into commodity di-
visions, as hereinafter provided.
(b) Provisions governing wholesalers or distributors in all com-
modity divisions shall be included in this general code.
(c) Provisions governing wholesalers or distributors in one or
more, but not in all commodity divisions, may be embodied in a sup-
plemental code for each division, after hearing before the Adminis-
trator and approval by the President.
SEC. 2. 'Creation and Organization of General Wholesale and Divi-
sional Wholesale Code Authorities.-(a) The creation of a General
Code Authority to cooperate with the Administrator in the adminis-
tration of the provisions of the General Code is hereby authorized,
and the creation of a Divisional Code Authority for each Division
of the Trade to cooperate with the Administrator in administering
the provisions of its Supplemental Code is hereby authorized.
(b) For the purposes stated in this Section, the following Courn
modity Divisions are hereby provided:'
Beauty and Barber Supplies
Charcoal and Packaged Fuel
Embroidery and Lace
Hats and Caps
Jewelry (including Watchmakers' and Jewelers' Supplies)
Men's Novelty Jewelry
Men's Wear Buttons
Notion, Thread & Women's Garments
Twine and Cordage
Upholstery and Decorative Fabrics
Woolen and Trimming Garment Supplies
SOthers may be added from time to time and surb further Divisions as the Admin-
istrator may find to he duly representative. Provided that the Administrator, after
due notice anil hearing, may amend these Divisions by enl.ir'inie 1r contracting them,
or by consolidating or further dividing one or more of Suli i i.iinf.
(c) The General Code Authority shall consist of one or more mem-
bers of each Divisional Code Authority, the precise number to be
determined by the Administrator. Such members shall be elected
by the members of each Divisional Code Authority in accordance
with a fair method approved by the Administrator. The Adminis-
trator may appoint not more than three members, without vote, to
serve for the term of six and twelve months, respectively, from the
date of appointment.
(d) Until such time as the General Code Authority is elected in
the manner provided in the foregoing paragraph and until such time
as a representative number of supplemental codes have been ap-
proved, the Administrator shall appoint. one member of each Com-
modity Division to act as a member of the General Code Authority.
(e) The Divisional Code Authority for each Division shall be
composed of not less than three (3) nor more than twenty-one (21)
wholesalers or distributors, or representatives thereof, in such Divi-
sion. who shall be elected, in accordance with a fair method, as pro-
vided in the supplemental Code of each Division. The Adminis-
trator may appoint two members, without vote, to serve for the term
of six months respectively from the date of appointment.
SEC. 3. Duties of Trade Associations-Code Authorities to be
Repre'sentativei.-(a) Each Trade Association directly or indirectly
participating in the selection or activities of the General and/or
ivisional Code Authorities shall: (1) impose no inequitable re-
strictions on membership, and (2) submit to the Administrator true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereof, together with such information as
to membership, organization, and activities as the Administrator
may deem necessary to effectuate the purpose of the Act.
(b) In order that tile General and Divisional Code Authorities
shall at all times be truly representative of the Trade and in other
respects comply with the provisions of the Act, the Administrator
may provide such hearings as he may deem proper; and, thereafter,
if he shall find that the General Code Authority or any Divisional
Code Authority is not truly representative or does not in any other
respect comply with the provisions of the Act. may request an appro-
priate modification in the method of selection of any such Code
SEC. 4. Assenting to Code and Payment of Cost of Adlniiistra-
ton.--Wholesalers or distributors shall be entitled to participate in
and share the benefits of the activities of their Divisional Code Au-
thority, and through such Divisional Code Authority, to participate
in and share the benefits of the activities of the General Code Au-
thority, by assenting to and complying with the requirements of
such Code:s and sustaining their reasonable share of the proper ex-
penses of their administration. Such reasonable share of the proper
expen-es of the administration of the General Code Authority and
of any divisional Code Authority shall be determined by each Au-
thority. respectively, subject upon review to the disapproval of the
Adminis-trator. on the basis of volume of business, the number of
Divisions in which a member may operate, and the extent of his op-
eratiorns in each Division, and, or such other factors as may be deemed
equitable to be taken into consideration. The share of the cost of
such administration, as so equitably assessed, shall be collected by
the several Divisional Code Authorities from the members of the
Trade in their respective Divisions.
SEC. 5. Powers of General and Divisional Code Authorities.-
(a) The General Code Authority shall have the power, subject upon
review to the disapproval of the Administrator in addition to other
powers herein granted:
(1) To coordinate the interests of the several divisions and the
activities of the several Divisional Code Authorities so as to pre-
vent conflicts of authority and to minimize overlapping of powers;
(2) To hear all matters pertaining to the provisions of the Gen-
eral Code which may be submitted to it by any Divi.ional Code
(3) To attempt to adjust and,'or to report the .ame to the Ad-
(4) To exercise any other general and lawful powers which may
be necessary to secure performance of the provision- of the Act.
(b) Each Divisional Code Authority shall have the following
First. With respect to the provisions of the General Code which
govern all Divisions of the Trade, each Divisional Code Authority,
subject to the approval or request of the General Code Authority:
(1) Shall require from wholesalers or distributors in the Divi-
sion which it represents such reports as are ncce.-ary to effectuate
the purposes of the General Code; and
(2) May, upon its own initiative or complaint of any wholesaler
or distributor in such Division, make investigations as to the func-
tioning and observance of any provision of the General Code; and
(3) May hear and attempt to adjust such complaints, and
Provided, however, that any wholesaler or distributor who may
be affected by the action or handling of matters pertaining to any
provision of the General (.od(e by his Divisional Code Authority,
shall have the right to have such matter submitted to and con-
sidered by the General Code Authority for its action, as provided in
Section 5 (a) of thib Article.
Second. With respect to the specific provisions of the Supple-
mental Codes which govern one or more, but not all, Divi.ions of the
Trade, each Divisional Code Authority, subject to the approval or
consent of the Administrator:
(1) Shall require from wholesalers or distributors in its Division
such reports as are ne essary to effectuate the purposes of its
Supplemental Code; and
(2) May, upon its own initititive or complaint of any wholesaler
or distributor in such Division, make investigation as to the function-
ing and observance of any provision of its Supplemental Code; and
(3) May hear and attempt to adjust such complaints; and
(c) In the event, that a Divisional Code Authority .should report
any matter referred to in the Second part of the above paragraph
to the Administrator which affects any provision of the General
Code, the Administrator may if he desires refer such matter to the
General Code Authority for handling as if such matter had been
directly submitted to the General Code Authority by such Divisional
Code Anuthority, as provided in the First part of the above
SEC. 6. infoian07f7lon for Governm7ent Agencies.-In addition to
the information required to be submitted to the General Code
Authority and to the Divisional Code. Authorities, there shall be
furnished to government agencies such statistical information as the
Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act.
SEC. 7. Adlin ~istratie Interpretations.-The Administrator shall
from time to time, after consultation with the General Code Author-
ity and or with a Divisional Code Authority, istsue such adminis-
trative interpretations of the various provisions of the General Code,
or of any supplemental Code, respectively, as are necessary to
effectuate their purpose.
SEC. S. LUdue Hardships Imposed by Codes.-Where the admin-
istration of the provisions of the General Code impose an unusual
or undue hardship upon any wholesaler or distributor, or upon any
Division, or where the administration of the provisions of any Sup-
plemental Code imposes an unusual or undue hardship upon any
wholesaler or distributor affected thereby, such wholesaler or dis-
tributor, or such division, may make application for relief to the
Admini,4trator, who, after such public notice and hearing as he may
deem necessary, may grant such exceptions to or modifications of
the provisions of the General Code, or of any Supplemental Code,
as the case may be, as may be required to effectuate the purposes of
ARTICLE VII-TRADE PRACTICES
SECTION 1. Inaccurate Adv erti9ing.-No member of the trade
shall publish advertising (whether printed, radio, display, or of
any other nature), which is misleading or inaccurate in any ma-
terial particular, nor shall any member in any way misrepresent any
goods (including, but without limitation, its use, trade-mark, grade,
quality, quantity, origin, size, substance, character, nature, finish,
material, content, or preparation) or credit terms, values, policies,
service'-s, or the nature or form of the business conducted.
SEC. 2. Fats-' B;lling.-No member of the trade shall knowingly
withhold froni or insert in any quotation or invoice any statement
that makes it inaccurate in any material particular.
SEC. 3. Iniac(iate Labell;ing.-No member of the trade shall brand
or mark or pack any goods in any manner which is intended to or
does deceive or mislead purchasers with respect to the brand, grade,
quality, quantity, origin, size, substance, character, nature, finish.
inalt.orinal intent, or preparation of such goods.
SEC. 4. I/lntI('lCt- t R fer'/cCccs to Competitors, et.-No member
of the tratle shall publish advertising which refers inaccurately in
an1y ii.ultr.ial 1palrticular to any competitors or their goods, prices,
\va lue, cruidit teruns, policies, or services.
SEC. 5. i'/T' at.s of Law tSuifs.-No member of the trade shall pub-
liii or circuhla tet unjustified or unwarranted threats of legal proceed-
ings which tend to or have the effect of harassing competitors or in-
timidating their customers. Failure to prosecute in due course shall
be evidence that any such threat is unwarranted or unjustified.
SEC. 6. Secret Rebates.-No member of the trade shall secretly and
directly offer or make any payment or allowance of a rebate, refund,
commission, credit, unearned discount, or excess allowance, whether
in the form of money or otherwise, nor shall a member of the trade
secretly offer or extend to any customer any special service or privi-
lege not extended to all customers of the same class, for the purpose
of influencing a sale.
SEC. 7. Bribing Employees.-No member of the Trade shall give,
permit to be given, or directly offer to give, anything of value for
the purpose of influencing or rewarding the action of any employee,
agent or representative of another in relation to the business of the
employer of such employee, the principal of such agent or the repre-
sented party, without the knowledge of such employer, principal, or
party. Commercial bribery provisions shall not be construed to
prohibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for com-
mercial bribery as hereinabove defined.
SEC. 8. Interfernce elth ANother's Contracts.-No wholesaleser
shall attempt to induce the breach of an existing contract between
a competitor and his employee or customer or source of supply;
nor shall any such wholesaler interfere with or obstruct the per-
formance of such contractual duties or services.
SEC. 9. Coerc;on.-No member of the trade shall require that the
purchase or lease of any goods be a prerequisite to the purchase or
lease of any other goods.
SEC. 10. Protection to Rcta;lers.-It shall be an unfair trade prac-
tice for Wholesalers who secure a substantial portion of their business
from members of the retail trade to enter into competition with re-
tailers by selling merchandise at. wholesale prices to ultimate con-
sumers for personal use or to sell to civic, institutional, and/or simi-
lar types of wholesale customers, merchandise for the personal use
of employees of such customers. Nothing in this section, however,
shall prevent bona fide sales by such wholesalers to their own em-
ployees of merchandise that is for the personal use of such employees.
ARTICLE VIII-PEIEMISSIVE TRADE PRACTICES
SECTION 1. Diffrcentials.-In any division in which manufacturers,
importers, mills, or other primary sellers sell coincidentally to several
classes of buyers the Divisional Code Authority, subject to the ap-
proval and with the advice of the Administrator, may arrange for a
conference of all interested parties, including primary sellers or the
Code Authority governing them, for the purpose of defining and
establishing price differentials which shall be fair and reasonable in
relation to the nature and extent, of the distributing services and
functions rendered by each buying class. Such differentials shall
include all elements affecting the net price, such as discounts, terms,
The Divisional Code Authority, with the advice and consent of
the administrator and after all interested parties shall have been
given an opportunity to be heard on the matter, shall formally an-
nounce the price differentials which are deemed fair on specific prod-
ucts. When the Divisional Code Authority announce that a fair
wholesale price differential has been established on any product by
sources competent to adequately serve the wholesalers in the Division,
then and thereafter, or until the Divisional Code Authority an-
nounces that such fair price differentials have been discontinued, it
shall be an unfair trade practice for a wholesaler or distributor to
handle such product unless the price at which it is sold to him allows
or provides for such fair price differential.
Nothing in this section shall be construed to abridge the right of
manufacturers to sell direct to retailers or the right of retailers to
Iuy direct from manufacturers.
Nothing in this section shall be construed to prevent reasonable
and fair price differentials from being allowed on the basis of quan-
tity purchased or such other factors as the Administrator shall deem
SEC. 2. Other Un ,fair Trade Practices.-Subject to the approval of
the President after hearing there may be established, in any Supple-
mental Code, trade practice rules covering such other subjects as
conditions in its specific Division may require, together with regu-
lations concerning such principles as loss limitation, selling below
cost, price reporting. Any violation of these provisions shall be an
unfair trade practice.
ARTICLE IX-PRISON-MADE GOODS
Pending the formulation of a compact or code between the several
states of the United States to insure the manufacture and sale of
prison-made goods on a fair competitive basis with goods not so pro-
duced, the following provisions of this section will be stayed for
ninety (90) days, or further at the discretion of the Administrator:
(a) Where any penal, reformatory, or correctional institution,
either by subscribing to the code or compact hereinbefore referred
to, or by a binding agreement of any other nature, satisfies the
Administrator that merchandise produced in such institution or by
the inmates thereof will not be sold except upon a fair competitive
basis with similar merchandise not so produced, the provisions of
Paragraph (b) hereof shall not apply to any merchandise produced
in such manner in the institutions covered by such agreement.
(b) Except as provided in the foregoing paragraph, no whole.
saler or distributor shall knowingly buy or contract to buy any mer-
chandise produced in whole or in part in a penal. reformatory, or
correctional institution. After May 31, 1934, no wholesaler or dis-
tributor shall knowingly sell or offer for sale such merchandise.
Nothing in this section, however, shall affect contracts, which the
wholesaler or distributor does not have the option to cancel, made
with respect to such merchandise before the approval of this code
by the President of the United States.
(c) Nothing in this section shall be construed to supersede or
interfere with the operation of the Act of Congress approved Janu-
ary 19i. 1929. being Public, No. 669 of the 70th Congress and entitled
"Abn Act to divest goods, wares, and merchandise manufactured, pro-
dluced or mined by convicts or prisoners of their interstate character
in certain cases ", which Act is known as the Hawes-Cooper Act, or
the provisions of any State legislation enacted under, or effective
upon, the effective date of the said Hawes-Cooper Act, the said
effective date being January 19, 1934.
SECTION 1. This General Code and all c(des supplemental thereto,
and all the provisions thereof, are expressly made subject to the right
of the President, in accordance with the provisions of subsection
(b) of Section 10 of the Act, from time to time to cancel or modify
any order, approval, license, rule. or regulation n issued unler Title I
of said Act and specifically, but without limitation, to the right of
the President to cancel, or modify his approval of these Codes or
any conditions imposed by him upon hi.,i approval thereof.
SEC. 2. This General Code and all codes supplemental thereto, ex-
cept as to provisions required by the Act, may be imolified on the
basis of experience or changes in circunitances, such modification to
be based upon application to the Administrator and such notice
and hearing as he shall specify, and to become effective on approval
of the Administrator.
No provision of this General Code, nor of any codes supplemental
thereto, shall be so applied as to permit monopolies, or monopolistic
practices, or to eliminate, oppress, or discriminate against small
ARTICLE XII-APPLICATION OF CODE
Every wholesaler or distributor, except. those who on the effective
date of this code are governed by any other code of fair competi-
tion under the administration of the National Recovery Adminis-
tration or the Agricultural Adjustment Administration, shall be
bound by all the provisions of this General Code and by all the
provisions of each and every Supplemental Code applicable to him,
when such General Code and or such Supplemental Code or Codes
shall have been approved by the President, except those wholesalers
or distributors, who within sixty (60) days after the effective date
of this Code file with the Administrator applications for exemptions
to this code or any portion thereof, which after due consideration by
the Administrator are sustained.
ARTICLE XIII-EFFECTIVE DATE
This General Code and all codes supplemental thereto shall be-
come effective on the 10th day after date.
Approved Code No 201.
Registry No. 1625-59.
UNIVERSITY OF FLORIDA
3 1262 08728 5234 I