Supplementary code of fair competition for the school supplies and equipment trade (a division of the wholesale or distr...

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Material Information

Title:
Supplementary code of fair competition for the school supplies and equipment trade (a division of the wholesale or distributing trade) as approved on July 5, 1934
Physical Description:
12 p. : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Schools -- Furniture, equipment, etc -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
"Approved code no.201 - Supplement No.12 ; Registry No.1698-1-03".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004853535
oclc - 607531324
System ID:
AA00007791:00001

Full Text



Approved Code No. 201-Supplement No. 12 Registry No. 1698-1---03


NATIONAL RECOVERY ADMINISTRATION



SUPPLEMENTARY
CODE OF FAIR COMPETITION

FOR THE

SCHOOL SUPPLIES

AND EQUIPMENT TRADE

(A Division of the Wholesaling or Distributing Trade)

AS APPROVED ON JULY 5, 1934


U'V. Orf FL ."

P-e( Iq- :


".TOR .

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


or ele by the Superintendent of Documents, Washington, D.C. Price 5 centa


Approved


Code No. 201-Supplement No. 12


Registry No. 1698-1-03
























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Buieau of
Ful'eign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago. Ill.: Suite 1706, 201 North Wells Street
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Menmphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle. Wash.: 809 Federal Office Building








Approved Code No. 201-Supplement No. 12


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE

SCHOOL SUPPLIES AND EQUIPMENT TRADE

As Approved on July 5, 1934


ORDER

SUPPLEMENTARY CODE OF FAIR COMPrETrITIN FOR THE SCHOOL SUPPLIES
AND EQUIPMENT TRADE

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
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 approval of a Supple-
mental Code of Fair Competition for the School Supplies and.
Equipment Trade to the (ode of Fair Competition for the Whole-
saling or Distributing Trade, and hearings having been duly held
thereon and the annexed report on said Supplemental Code, contain-
ing findings with respect thereto; having been made and directed to
the President:
NOW. THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Pres-
ident, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Supplemental Code complies in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Competition be and it is hereby ap-
proved; provided, however, that the provisions of Article V, Section
1 (a), insofar as they prescribe a waiting period between the filing
with the Code Authority (i.e. actual receipt by the Code Authority)
and the effective date of revised price lists or revised terms and
conditions of sale be, and they are hereby stayed pending my further
order; and provided, further, that the provisions of Section 2,
Article V, are approved for a period of ninety (90) days only,
subject. to further order at that time as a result of study made of the
operation of said provisions.
HUGH S. JOHNSON,
Admin istrator for Indulstrial Re'covery.
Approval recommended:
R. L. HOUsTnN,
I)visfi on dmin istrator.
WASHINCTON, D.C.,
July .5, 1934.
72196--829-23--34---1 (1












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: This is a report of the Hearing on the Supplemental Code
of Fair Competition of the School Supplies and Equipment Dis-
tributing Trade, conducted in Room 127 of the Willard Hotel, on
April 19, 1934. The Supplemental Code, which is attached, was
presented by duly qualified and authorized representatives of the
Trade.
THE TRADE

Due to the considerable overlapping of this Trade in others, accu-
rate statistics are not available. According to data submitted by the
Trade, in 1933 there were approximately three hundred establish-
ments with aggregate annual sales of $45,000,000. The Trade em-
ployed about fifteen thousand people. In 1929 there were two hun-
dred and seventy-five establishments employing twenty-seven thou-
sand people with aggregate annual sales of $110,000,000.

PROVISIONS OF THE CODE

This Code contains no Supplemental Labor Provisions, the em-
ployees being subject to the wage and hour provisions of the Code of
Fair Competition for the Wholesaling or Distributing Trade.
The provisions containing supplemental definitions are considered
inclusive and accurate.
The administrative provisions establish a Divisional Code author-
ity which fairly represents all the different elements in the Trade.
The Trade practices proposed are not considered to be objection-
able. However, some controversy has been raised in connection with
the provisions covering price differentials. These provisions are de-
signed to secure cooperation of the producer, which is necessary to
effectuate their intent. These provisions have been subject to rigid
analysis, and it is felt that the results give very adequate consumer
protection.
FINDINGS

The Deputy Administrator in his final report to me on said Sup-
plemental Code having found as herein set forth and on the basis of
all the proceedings in this matter:
I find that-
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof,
and will provide for the general welfare by promoting the organiza-
(2)








tion of industry for the purpose of cooperative action among trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanction and supervision,
by eliminating unfair competitive practices, by promoting the fullest
possible use of the present productive capacity of industries, by
avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Trade normally employs not more than 50,000 employees
and it is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) or
Section 7 and Subsection (b) of Section 10 thereof; and that the
applicant association is a trade association truly representative of
the aforesaid Trade; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate 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 the approval of
this Supplemental Code.
For these reasons, the Supplemental Code has been approved.
Respectfully,
HUGH S. JOHNSON,
Adm in istrator.
JULY 5, 1934.











SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE SCHOOL SUPPLIES AND EQUIPMENT TRADE

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE

ARTICLE I-PURPOSES

To effectuate the policies of Title I of the National Industrial
Recovery Act, this Supplemental Code is established as a Code of
Fair Competition for the School Supplies and Equipment Distribut-
ing Trade pursuant to Article VI, Section 1 (c) of the Code of Fair
Competition for the Wholesaling or Distributing Trade, approved
by the President of the United States on January 12, 1934. All pro-
visions of the said General Code which are not in conflict with the
provisions of this Supplemental Code are hereby incorporated by
reference in this Supplemental Code and made a part hereof. Such
provisions of the General Code, together with the supplementing
provisions of this Code are the standards of fair competition for and
are binding upon every member of said School Supplies and Dis-
tributing Trade.
ARTICLE II-DEFINITIONS

(SUPPLEMENTING ARTICLE II OF THE GENERAL CODE)

SECTION 1. Distributor or Wieo7esaler.-The term Distributor or
Wholesaler ", as used herein, shall mean any individual, partnership,
association, corporation, or other form of enterprise or definitely
organized division thereof, set up to render and rendering a general
distribution service which buys and maintains at his or its place of
business a stock of school supplies and equipment, and which through
saIlesmen, advertising and/or sales promotional devices, sells to insti-
tutional and/or commercial users and/or incidentally to retailers,
but which does not sell in significant amounts to ultimate consumers.
SECTION2. School Supplies and Equipment.-The term School
Supplies and Equipment as used herein, shall mean such supplies
and equipment as are used by pupils, teachers, administrators, and
general employees of Boards of Education in their respective
capacities as such.
SECTION 3. Divisional Code Authority.-The term "Divisional
Code Authority ", as used herein, shall mean the Divisional Code
Authority for the School Supplies and Equipment Distributing
Trade, a Division of the Wholesaling or Distributing Trade.
SECTION 4. General Code.-The term "General Code", as used
herein, shall mean the Code of Fair Competition for the Wholesal-
ing or Distributing Trade.
SECTION 5. The Trade.-The term "The Trade" as used herein
shall mean the business in which wholesalers or distributors of school
supplies and equipment are engaged.
(4)






5

SECTION 6. Member of the Traue.-The term "member of the
Trade", as used herein, shall mean any wholesaler or distributor
engaged in the trade.
SECTION 7. Association.-The term Association ", as used herein,
shall mean the National School Supplies and Equipment Association.
SECTION 8. Blind Bid.-The term Blind Bid ", as used herein,
shall mean an offer by a seller to meet or to better the price quoted
in the lowest bid received for any specific order or bill of goods or
in any other case where bids are requested.
ARTICLE III-ADMINISTRATION
(SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE)
SECTION 1. The Divisional Code Authority of the School Supplies
and Equipment Distributing Division shall be composed of thirteen
(13) members.
SECTION 2. (a) The Executive Secretary of the Association shall
be ex officio a member of the Divisional Code Authority.
(b) The remaining twelve (12) members of the Divisional Code
Authority shall be elected as follows:
1. The Executive Committee of the Association shall nominate
one candidate for each of the eight (8) Regional Districts into
which the Association has divided the United States and which are
set forth in detail in Schedule A of this Supplemental Code.
2. The Administrator shall also nominate four candidates at
large. These four candidates shall not be members of the
Association.
3. The Executive Committee shall send to every member of the
Trade discoverable by diligent search ballots containing the names
of these candidates. The ballots shall also contain blank spaces
in which voters may write their personal choices. Each voter shall
vote for one candidate from his Regional District and for four
candidates at large.
4. To each ballot shall be attached a statement of assent and com-
pliance to this Supplemental Code, and to the General Code.
5. Twenty (20) days after the mailing of these ballots the Execu-
tive Committee of the Association shall publicly count those votes
which have been returned to it. Only those ballots shall be counted
which have attached to them signed statements of assent and com-
pliance. The candidate receiving the largest number of votes in
each Regional District, and the four candidates at large receiving
the largest number of votes shall be elected. No votes for candidates
at large who are members of the Association shall be counted.
6. The Executive Committee shall certify to the Administrator
the method of conducting the election and the result of the same.
SECTION 3. The terms of office of members of the Divisional Code
Authority and the method of electing their successors whether for
full new terms or for unexpired terms shall be established in the
bylaws of the Divisional Code Authority.
SECTION 4. The Divisional Code Authority shall have the follow-
ing duties and powers, in addition to those prescribed in the Gen-
eral Code, subject to such rules and regulations as may be issued
from time to time by the Administrator:







(a) To appoint a Trade Practice Committee, which shall meet
with the Trade Practice Committees appointed under such other
Codes as may be related to the Trade, except other Supplemental
Codes to the General Code, for the purpose of formulating Fair
Trade Practices to govern the relationships between production and
distribution employers under this Supplemental Code and under such
others, to the end that such Fair Trade Practices may be proposed
to the Administrator as amendments to this Supplemental Code
and such other Codes.
(b) To appoint a Regional Committee or agent in each of such
regions as the Divisional Code Authority may establish with the
approval of the Administrator to assist the Divisional Code Author-
ity in administering this Supplemental Code and the General Code,
provided, however, that nothing herein shall relieve the Divisional
Code Authority of its responsibilities as such.
(c) To organize, elect officers, hire employees, appoint agents, and
perform such other acts as may be necessary for the proper adminis-
tration of this Supplemental Code and the General Code.
(d) To adopt by-laws and rules and regulations for its procedure.
(e) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Divisional
Code Authority of its duties or responsibilities under this Supple-
mental Code and that such trade associations and agencies shall at
all times be subject to and comply with the provisions hereof.
(f) To obtain from members of the Trade such information and
reports as are required for the administration of this Supplemental
Code. In addition to information required to be submitted to the
General Code Authority and to the Divisional Code Authority mem-
bers of the Trade subject to this Supplemental Code shall furnish
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act, to such
federal and state agencies as he may designate; provided that noth-
ing in this Supplemental Code shall relieve any member of the Trade
of any existing obligations to furnish reports to any governmental
agency. No individual report shall be disclosed to any other member
of the Trade or any other party except to such other governmental
agencies as may be directed by the Administrator.
(g) To appoint, within one month after the effective date of the
Supplemental Code, a committee so constituted as to give producer,
consumer, and governmental representation satisfactory to the Ad-
ministrator, to make a study with a view to the establishment of
classifications and standards of quality of staple products of the
Trade, wherever such standards are deemed feasible. The findings
and recommendations of this committee shall be submitted to the
Administrator, within one year, and after such hearings and investi-
gations as he may designate, and upon approval by him, shall be
made a part of this Supplemental Code and be binding upon every
member.
(h) To from time to time suggest modifications of and/or amend-
ments to this Supplemental Code and to assent, to such modifications
and/or amendments and to the Supplemental Code in its final form
as modified and/or amended.








SECTION. 5. Nothing contained in this Supplemental Code sh.ll
constitute the members of the Divisional Code Authority partners
for any purpose nor shall any members of the Divisional Code
Authority be liable in any mannner to anyone for any act of any
other member, officer, agent or employee of the Divisional Code
Authority. Nor shall any member of the Divisional Code Author-
ity, exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to nact, under
this Supplemental Code, except for his own willful mi-fe .since or
nonfeasance.
SECTION G. If the Administrator shall determine that any action
of the Divisional Code Authority or any agency thereof, may be
unfair or unjust or contrary to the public interest, the administrator
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and for further rcn-
sideration of such Divisional Code Authority or agency, pending
final action, which shall not be effective unless the Administrator
approves or unless he shall fail to disapprove after thirty days'
notice to him of intention to proceed with such action in its original
or modified form.
SECTION 7. The Divisional Code Authority shall appoint one or
more of its members to a committee which shall constitute a co-
ordinating committee between this trade and any other trade for
which a supplemental code under the General Code has been ap-
proved, if, and when the Divisional Code Authority for said other
trade shall appoint one or more members to the said committee.
The Divisional Code Authority of this trade shall delegate to this
co-ordinating committee, if and when established, such of its powers
as may be necessary to co-ordinate the administration of this Sup-
plemental Code with the administration of such other supplemental
code so as to provide for administration which shall be fair and
equitable to each trade.
SECTION 8. It being found necessary, in order to support the ad-
ministration of this Supplemental Code and to maintain the stand-
ards of fair competition established in this Supplemental Code and
to effectuate the policy of the Act, the Divisional Code Authority is
authorized, subject to the approval of the Administrator:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet. such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of this Supplemental Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary,
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the Trade;
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and secure equitable con-
tribution as above set forth by all such members of the Trade, and
to that end, if necessary, to- Institute legal proceedings therefore in
its own name.
(d) After the approval by the Administrator of the itemized
budget of estimated expenses and equitable basis of contribution non-








payment by any member of the Trade of an assessment levied by the
Divi.-ional Code Authority as an equitable share of the cost of Code
Admirni..tration shall constitute a violation of this Supplemental
Code and of the General Code.
SEiO",N 9. Each member of the Trade shall pay his or its equitable
contribution to the expenses of the maintenance of the Divisional
Code Authority, determined as hereinabove provided, and subject
to rules and regulations pertaining thereto issued by the Adminis-
trator. Only members of the Trade complying with the Code and
contributing to the expenses of its administration as hereinabove pro-
vided, shall be entitled to participate in the selection of members of
the Divisional Code Authority or to receive the benefits of any of its
voluntary activities or to make use of any emblem or insignia of the
National Recovery Administration.
SECTION 10. The Divisional Code Authority shall neither incur
nor pay any obligation in excess of the amount thereof as estimated
in its approved budget, except upon approval of the Administrator;
and no subsequent budget shall contain any deficiency item for ex-
penditures in excess of prior budget estimates except those which
the Administrator shall have so approved.
SECTION 11. (a) There is hereby created an Industrial Relations
Committee to be composed of three (3) persons who shall be selected
as follows:
1. A representative of the employers to be appointed by the Divi-
sional Code Authority.
2. A representative of the employees to be nominated by the Labor
Advisory Board of the National Recovery Administration and ap-
pointed by the Administrator.
3. An impartial chairman to be selected by the two (2) members
already appointed or in case they disagree, by the Administrator.
(b) The members of this Committee shall hold office for six (6)
months from the date of their appointments and re-appointments
shall be made and vacancies shall be filled in the same manner as
provided in paragraph (a) of this Section 11.
(c) This Industrial Relations Committee shall have the duty of
dealing with complaints and disputes relating to labor in accordance
with rules and regulations issued by the Administrator. It shall
have all powers necessary to facilitate the performance of said duty.
ARTICLE IV-TRADE PRACTICES

(SUPPLEMENTING ARTICLE VII OF TilE GENERAL CODE)

The following practices constitute unfair methods of competition
for the members of the Trade and are prohibited:
SECTION 1. To make quotations or bids which do not state that
they are made subject to conditions, terms of sale, trade practices,
and differentials of this Supplemental Code.
SECTION 2. To compute quantity discounts on any other basis than
that of the quantities shipped and/or billed to a single buyer.
SECTION 3. To ship or deliver products which do not conform to
samilples submitted when orders have been obtained on the basis of
such samples or representations made prior to securing the orders.








SECTION 4. To make fictitious or blind bids or to attempt through
connivance to have all bids rejected to the end that a more advanta-
geous position may be secured in new bidding.
SECTION 5. To submit bids where quantities of the various products
covered by the bids are not specified by the purchaser.
SECT.IO G. To bid in lump sunm for a group of items without stating
unit prices. In all competitive bids, unit prices shall be stated for
each item.
The total of the extended prices shall be the bid price, except that
nothing herein shall restrain a bidder from granting bona fide dis-
counts for quantity and/or volume on whatever basis established and
filed with the Divisional Code. Authority, as provided in Section 1,
Article V.
SECTON 7. To offer or make any concession, payment, or allowance
in the form of money or otherwise on any line of merchandise as a
subterfuge or concession to influence a sale of any line of merchandise
other than that on which such concession, payment or allowance is
granted.
SECTION 8. To employ subterfuge directly or indirectly to avoid or
attempt to avoid the provisions of this Supplemental Code, or the
General Code, or the purpose and intent of the National Industrial
Recovery Act, which is to increase employment, provide better wages
promote fair competitive methods, better business conditions, and
promote the public welfare.
SECTION 9. To imitate trade marks, trade names, slogans or other
marks of identification of competitors' products for the purposes of
unduly hampering or embarrassing a competitor and/or for the
purpose of deceiving the prospective purchasers of such products;
or to catalog a manufacturer's product which is not sold by that
member of the Trade.
SECTnoN 10. To secure confidential information from competitors
concerning their business by false or misleading statements or repre-
sentations or by false impersonations of one in authority and the
wrongful use thereof to unduly hinder or stifle the competition of
such competitors.
SECTION 11. To offer or give prizes, premiums, or gifts in connec-
tion with the sale of products as an inducement to buy such products
when such prizes, premiums or gifts are not offered to all customers
of the same class in the trae ra area.

ARTICLE V-PERMISSIVE TRADE PRACTICES

SUPPLEMENTINGG ARTICLE VIII OF THE GENERAL CODE)

SECMTON 1. (a) within fifteen (15) days after they are notified
to do so by the Divisional Code Authority, in accordance with the
approval of the Administrator, members of the Trade must file with
it schedules of their sales prices on such of the lines which they
sell as the Divisional Code Authority may from time to time desig-
nate, including all terms, conditions, or allowances affecting the
price at which any item is offered for sale to their customers. These
schedules may be changed by filing with the Divisional Code Author-








ity notice of such changes five (5) days before such changes are to
become effective.1
(b) No member of the Trade shall sell or offer to sell goods at
prices other than those which he then has on file.
(c) No member of the Trade shall file a price or sell any item
for a price lower than the net invoice price plus incoming transpor-
tation costs to his warehouse, provided that;
(1) A member of the Trade may sell at a price less than the
minimum provided above in order to meet the price of a competitor
whose price does not violate this Section; provided that before mak-
ing the sale he files by telegraph, effective immediately, the price
at which he proposes to make such sale.
(2) Bona fide sales for the purpose of closing out discontinued,
obsolete, or distress merchandise may be made at such prices and
upon such terms and conditions as may be necessary to effect their
sale. Full details of such sales including the amount of such mer-
chandise on hand and the date of its purchase must be reported to
the Divisional Code Authority at least fifteen (15) days before the
date of such sale.
(d) All filed prices effective at any time shall be matters of public
record and available for inspection by all interested parties. The
Divisional Code Authority however may establish a reasonable
charge for furnishing by mail copies of such filed prices to those
requesting the same.
(e) When manufacturers of products distributed by this Trade
shall, through action of their respective Code Authorities with the
approval of the Administrator, have established standard units as
to grades, qualities, size, quantities, and counts in which standard
unit fabricated goods shall be offered for sale, price schedules filed
by members of the Trade shall be in the form of quotations on the
standards units so established but without respect to the manufac-
turer's designated prices.
(f) If at any time the Administrator after a hearing shall find
that this open-price arrangement is being used for the purpose of
price fixing or unduly enhancing the price, he may in his discretion
suspend its operation or declare it permanently inoperative.
SECTION 2. (a) No wholesaler shall quote to any purchaser of
a product upon which the manufacturer thereof shall have granted
to such wholesaler a fair price differential, as provided by Article
VIII, Section 1 of the General Code, a lower price than that quoted
on such commodity by said manufacturer to the same class of
purchasers.
(b) If such differential is greater than the operating cost of any
member of the Trade, such member of the Trade shall be permitted
to sell at less than the differential so established upon furnishing
proof of his lower operating cost to the Divisional Code Authority,
but not less than his invoice cost plus said operating cost.
(c) Any wholesaler or distributor may reduce lis price below
that established in paragraph (a) of this Section in order to meet
the competition of any other wholesaler or distributor who, in ac-
cordance with the provisions of paragraph (b) of this Section, is
SSee paragraph 2 of order approving this Code.








selling at a price less than that established in paragraph (a) of this
Section.
(d) The Administrator may, from time to time, collect statistics
of the operating expenses of the members of the School Supplies
and Equipment Distributing Trade. If such investigation shall
show that the price differential established under paragraph (a)
above is in any way inequitable or unduly high in relation to the
wholesaler's operating costs, or tends to enhance the price of the
product to buyers or ultimate consumers, the Administrator may,
after proper notice and hearing, suspend it or declare it permanently
inoperative.
(e) An exception to the rule in paragraph (a) of this Section may
be granted by the Divisional Code Authority in case a wholesaler
wishes to discontinue handling a manufacturer's line and has stock
on hand to be disposed of. In such case the manufacturer shall be
given the option of taking back at the manufacturer's then market
price the wholesaler's stock on hand or any portion thereof. If the
manufacturer fails to exercise this option within ten (10) days after
written notice by the wholesaler of his intention to discontinue han-
dling that line, the wholesaler may proceed to dispose of the stock
at any price he may desire.2

ARTICLE VI-STATE LAWS

In any state where the purchase of School Supplies and/or Equip-
ment is governed by the law of such state, provisions of this Supple-
mental Code shall not apply in any situation where such provisions
would be in conflict with such state law.
AI:TICLE VII-POWER OF PRESIDENT TO MODIFY

This Supplemental Code and all the provisions thereof are ex-
pressly made subject to the right of the President in accordance with
the provisions of Sub-section (b) of Section 10 of the Act, from time
to time to cancel or modify any order, approval, license, rule or
regulation issued under Title I of said Act.

ARTICLE VIII-EFFECTIVE DATE

This Supplemental Code shall become effective on the tenth day
after its approval by the Administrator.
Approved Code No. 201-Supplement No. 12.
Registry No. 1C98-1-03.
See paragraph 2 of order approving this Code









SCHEDULE A

REGIONAL DISTRICTS ESTABLISHED BY ASSOCIATION'

DISTRICT A: Ml:inCe, New Hampshire, Vermont, Massachusetts, Rhode Island.
Connecticut, New York, New Jersey, Pennsyl\vnia, Delaware, M1\ryland, West
Virginia and District of Columbia.
DISTRICT B: Virriinia, North Carolina, South Carolina, Tennessee, Mlississippi,
Alabana, Georgia;, Flurida and Louisiana.
DISTRICT C: Illiinis, Indiana, Kentucky, Ohio, Michigan except Northern
Peninsula.
DISTRICT D: Wisconsin, Northern Peninsula of Michigan, Minnesota, Iowa,
Missouri, Oklahoma, Kansas, Nebraska, North Dakota, South Dakota, and
, ntntan.a.
DISTRICT E: Texas and Arkansas.
DISTRICT F: Wyoming, Utah, Colorado and New Mexico.
DISTRICT G: Wasiinigton, Oregon and Idaho.
DISTRICT H: Californiia, Nevada and Arizona.

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i;.





UNIVERSITY OF FLORIDA
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