NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AS SUBMITTED ON SEPTEMBER 6, 1933
The Code for the Textbook Publishing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington. D.C. - Price 5 cents
UNIV. OF FL L R
.... 0 .
U.S. 0 TOKOCT
Registry No. 501-06
NATIONAL TEXTBOOK PUBLISHERS' COUNCIL
THE CODE OF THE TEXTBOOK PUBLISHING INDUSTRY
FOR THE ADVANCEMENT OF THE NATIONAL INDUS-
TRIAL RECOVERY ACT
ARTICLE I--PURPOSE OF THE CODE
SECTION 1. This Code, hereinafter referred to as "the Code", is
adopted pursuant to Title I of the National Industrial Recovery
SEC. 2. The purpose of the Code is to effectuate the provisions of
the National Industrial Recovery Act insofar as it is applicable to
the Textbook Publishing Industry, to increase employment, to estab-
lish fair and adequate wages and fair hours of labor, and to elimi-
nate unfair trade competition in the Textbook Publishing Industry.
SECTION 1. The term "Textbook Publishing Industry is defined
as the business of publishing and selling books, printed materials,
and/or accessories, in the United States and its possessions, for use
in educational institutions such as public schools, private schools,
colleges, and universities, and for instructional use by individuals
SEC. 2. The term Member of the Textbook Publishing Industry "
is defined to include any person, partnership, corporation, associa-
tion, or public body now or hereafter engaged in the Textbook Pub-
lishing Industry as defined above.
SEC. 3. The term unfair competition is defined as any act on
the part of any Member of the Textbook Publishing Industry in
violation, under the National Industrial Recovery Act, of the pro-
visions of this Code.
SEC. 4. The term "person" means and includes any natural per-
son, partnership, corporation, association, institution, or public body.
SECTION 1. Any Member of the Textbook Publishing Industry
shall be entitled to be a participating member of the National Text-
book Publishers' Council as hereinafter provided for, upon accept-
ing his share of the responsibilities and costs of such participation,
and shall be entitled to all the benefits thereof; but all Members of
the Textbook Publishing Industry, in accordance with the provi-
sions of the National Industrial Recovery Act, shall be subject to
the provisions of the Code when approved by the President of the
United States, whether such Members of the Textbook Publishing
Industry are or, are not Members of the National Textbook Pub-
ARTICLE IV-ADMINISTRATION OF THE CODE
SECTION 1. The Code shall be administered by the National Text-
book Publishers' Council founded for this purpose and whose' mem-
bership is made up as follows: each Member of the Textbook Pub-
lishing Industry who agrees to comply with the provisions of the
Code, may designate one executive from its own organization as
its representative to serve until replaced by the Member of the
Textbook Publishing Industry making such designation, and such
representatives so designated shall constitute the National Text-
book Publishers' Council, hereinafter referred to as the. "Council."
Sic. 2. The members of the Council shall elect from its member-
ship a Chairman, a Vice Chairman, a Secretary, and a Treasurer,
and shall then elect from its niemlbership not more than seven, who,
together with the elected officers, shall constitute the Executive
Committee. All officers and members of the Executive Committee
shall serve for one 'ear or until their successors are elected, or as
may be provided in the By-Laws of the Council.
SEC. 3. In accordance with the By-Laws of the Council, the admin-
istration of the Code shall be vested in and under the direction of
the Executive Committee of the National Textbook Publishers' Coun-
cil, and said Executive Committee shall have all the powers and
duties conferred upon it by the Code, and such other powers and
duties as may be necessary and proper to fully administer the Code
and effectuate its purpose.
SEC. 4. Unless otherwise provided by the By-Laws of the Council,
the Chairman of the Council shall be the Chairman of the Executive
Committee; he shall call meetings of the Executive Committee upon
his own initiative or when reqlueted by four Members of the said
Committee; he shall call such meetings of the Council as may, in the
judgment of the Executive Committee, be deemed necessary, or upon
a signed request of one fourth of the members of the Council. The
Vice Chairman of the Council shall be the Vice Chairman of the
Executive Committee, and in the absence of the Chairman shall act
in his place.
SEC. 5. Unless otherwise provided by the By-Laws of the Council,
the Secretary of the Council shall be the Secretary of the Executive
Committee, and under the direction of said Committee he shall keep
all books (except books of account) and records of the Council and
the Executive Committee; and, except as such Committee shall other-
wise provide, shall collect, file, and tabulate all statistics and other
information required by the Executive Committee for the proper
administration of the Code.
SEC. 6. The Treasurer of the Council shall, under the direction of
the Executive Committee and in accordance with the By-Laws of the
Council, collect, have custody of, and have charge of the disposi-
tion of all funds collected under the Code; he shall keep proper books
of account of the collection and distribution of such funds; and he
shall perform such other duties as may be provided in the By-Laws
of the Council.
SEC. 7. In accordance with the By-Laws of the Council, the Execu-
tive Committee shall appoint, remove, and fix the compensation of
such employees as said Committee shall deem necessary for the
administration of the Code, and provide such office facilities as may
SEc. 8. The expenses of administering the Code shall be paid by
the Members of the Textbook Publishing Industry, and funds for
defraying such expenses shall be payable to the Treasurer as follows:
(a) Each Member of the Industry shall pay annually $100.00; and
(b) in addition the Executi\ve Committee may levy against each
Member of the Industry such proportionate assessments as may be
SEC. 9. The Executive Committee shall have the powers and duties
as provided herein, and shall also
(a) from time to time require such reports from the Members of
the Textbook Publishing Industry as may be necessary to inform the
said Committee adequately of the administration and enforcement of
this Code and to satisfy all the requirements of the National Recovery
Administ rat ion;
(b) upon complaint of interested parties, or upon its own initia-
tive, make such inquiry and investigation into the operation of the
Code as may be necessary, and take such action as iniav be required
by or permitted under the National Industrial Recovery Act;
(c) make rules and regulations necessary for the administration
and enforcement of the Code;
(d) submit to the Council for adoption such ,.upplemlentary provi-
sions, amendments, or revisions to the Code or additional Code as
may be found desirable, and, when adopted, shall present the same
for the approval and ratification of the National Recovery Adminis-
(e) appoint from time to time such other or subconmmittees as
may be necessary to carry out the provision, of the Code. Members
of the committees so appointed may be from the Council. the Execu-
tive Committee, or from both.
SEC. 10. The Executi\ve Committee, with such additional mem-
bers as may be recommended or appointed by the National Recovery
Administration, shall constitute a general planning and coordinat-
ing Board for the Industry.
ARTICLE V-HOURS OF LABOR, RATES OF PAY, AND CONDITIONS OF
SECTION 1. Pursuant to Section 7 (a) of the National Industrial
Recovery Act, the Code shall be subject to the following conditions :
(a) Employees shall have the right to organize and bargain col-
lectively 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-organization 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.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved by the President of the United States.
SEC. 2. No individual shall be employed in the Textbook Publish-
ing Industry in excess of forty hours in any one week, except during
the period in which seasonal or peak demand- places an unusual or
temporary burden upon production, distribution, stock taking, or
bookkeeping, provided, however, that while an employee may be per-
mitted to work in excess of forty hours in any one week in order to
take care of a peak demand upon the business as described above.
the number of such excess hours worked shall be so restricted that
the average number of hours worked per week by the given employee
shall not exceed forty within any six months' period.
SEc. 3. Except as hereinafter provided, within ten days after the
effective date of this Code, the minimum wage that shall be paid in
the Textbook Publishing Industry to any employee shall not be less
than $15.00 per week in any city of over 500,000 population, or in the
immediate trade area of such city; nor less than $14.50 per week'in
any city of between 250,000 and 500,000 population or in the im-
mediate trade area of such city; nor less than $14.00 per week in any
city of between 2,500 and 250,000 population or in the immediate
trade area of such city; and in towns of less than 2,500 population
all wages shall be increased by not less than twenty percent provided
that such increase shall not require wages in excess of $12.00 per
week. Office boys or girls, learners, and casual employees may be
paid not less than eighty percent of minimum wages as herein pro-
vided, but the total amount paid to such office boys or girls, learners,
and casual employees shall not exceed in any calendar month five
percent of the total amount paid by an employer to all his employees.
SEC. 4. The provisions for a minimum wage in this Code shall
establish a guaranteed minimum rate of weekly pay regardless of
whether the employee is compensated on the basis of a time rate or
on a piecework performance. If the provisions herein for maximum
hours worked per week shall entail a reduction in the number of
hours worked per week heretofore, no reduction in the present com-
pensation of employees now receiving in excess of the minimum
wage herein provided shall thereby result.
SEC. 5. No Member of the Textbook Publishing Industry shall
employ any person under sixteen years of age.
ARTICLE VI-INDUSTRY REGULATIONS
SECTION 1. Members of the Textbook Publishing Industry, as
requested by the Executive Committee. shall furnish the said Com-
mittee such information as may be necessary for the administration
of the Code and for the enforcement, of the rules and regulations
SEC. 2. Within ten days after the effective date of this Code, each
member of the Textbook Publishing Industry shall file with the
Executive Committee the title, list price, and maximum discount
f.o.b. publisher of each regular publication or accessory offered for
sale or adoption in the United States and its possessions, intended
for elementary and secondary school use, and thereafter the title,
list price, and ma;xiiimm discount. f.o.b. publisher of each additional
publication or accessory not previously filed shall be similarly filed.
The publication of a so-called special edition of a regular text-
book representing immaterial niinufacturing changes or slight
changes in content for the purpose of effecting a disproportionate
reduction in price shall be considered unfair practice. Nothing in
this section, however, shall be construed to prohibit the adaptation
of a regular edition of a textblok to the grade or course of study
requirements of any state, city, or district school system, or to other
reasonable requirements of adopting board-. If the adaptationn of
a regular edition cau-es any change in price, such price shall be duly
filed with the Executive Committee. Changes in prices of books so
listed shall be filed with the Executive Committee 10 days before
such books shall be sold or offered for sale or adoption at such
Prices offered in sealed competitive bids for adoption shall be
filed with the Executive Committee within ten days after the bids
are opened and samples of books so offered shall be submitted to the
Committee. All prices filed with the Executive Committee shall be
included in official current price lists and catalogs as issued from
time. to time by members of the Industry.
SEC. 3. It shall be unfair competition for any Member of the Text-
book Publishing Industry to sell, offer, or contract for sale or adop-
tion, directly or indirectly, by any means whatsoever, any product
of the Textbook Publishing Industry at a lower price or at a greater
discount than listed and/or filed by its publisher with the Executive
Committee, or on more favorable terms than provided in the Code.
SEC. 4. On and after January 1, 1934, an exchange allowance may
be made as follows: When an old, displaced, complete, basal ele-
mentary, and/or high-school textbook of the same subject, and grade
is received in exchange for a new and different textbook introduced
in its stead, an additional discount of not in excess of five percent.
of the list price of the new book purchased may be allowed. New
and salable books of the same subject and grade may be accepted
dollar's worth for dollar's worth, but the credit for any one book
shall not be in excess of the net charge for the new book. The num-
ber in the aggregate of the new and old books accepted for exchange
shall not exceed the number of new books purchased. All books
subject to exchange must be delivered to the Member of the Text-
book Publishing Industry making the exchange before any credit
shall be allowed.
SEC. 5. Inasmuch as the sending of sample textbooks for examine
tion is a recognized part of the promotional work of the Tex+ .1'
Publishing Industry, it is agreed that such samples shp, 1e sent
complimentary only to school boards, school official- :achers and
other persons charged with the responsibility of optingg textbooks
or recommending the same for adoption. P,-- copies, sets of books
for trial class use or demonstration na,,.1oses, for libraries, or for
exhibits shall be charged at regular prices.
SEC. 6. It shall be unfair Zompetition to pay or offer to pay,
directly or indirectly, ex7pt to regularly employed salesmen, any
compensation, or gi-e any gratuity to any person. attorney, or solici-
tor, either by any Member of the Textbook Publishing Industry or
by any of his agents or representatives, for securing, or attempting
to secure, sales or contracts of adoption.
SEC. 7. It shall be unfair competition for any Member of the Text-
book Publishing Industry after the opening of public competitive
bids to revise his bid, either directly or indirectly, and after an
adoption has been regularly made, to interfere with the execution of
a legal contract based upon such adoption.
SEC. 8. It shall be unfair competition for any Member of the Text-
book Publishing Industry, his agents, or representatives to make or
disseminate false reports or statements in any form about competi-
tors, their products, or methods.
SEC. 9. It shall be unfair competition to increase the price of any
textbook or series sold after the effective date of the Code by more
than may be made necessary by actual increases in production. re-
UNIVERSITY OF FLORIDA
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placement, or invoice costs of material representing other steps in
the economic process of publishing such book or series; provided fur-
ther, that all contracts, whether state, county, or municpality, entered
into prior to such effective date of the Code, provisions otherwise
notwithstanding, will be subject to the aforesaid increase, and all
contracts hereafter entered into while the Code is in force shall in-
clude a statement to this effect.
SECTION 1. No provision in this Code shall be interpreted or ap-
plied in such manner as to:
(a) Promote monopolies.
(b) Permit or encourage unfair competition.
(c) Eliminate or oppress small enterprise.
(d) Discriminate against small enterprise.
SEC. 2. This Code and all its provisions shall remain in effect, until
the expiration date of Title I of the National Industrial Recovery
Act subject to the right of the President, in accordance with Section
10 (b) of Title I of the Act, from time to time to cancel or modify
any order, approval, license, rule, or regulation issued under Title I
of the Act, and, therefore, subject to the right of the President of
the United States to cancel or modify his approval of this Code or
any conditions imposed by him upon his approval thereof.
SEC. 3. Amendment to this Code may be offered in writing by any
Member of the Textbook Publishers' Council. Any such amendment
-hall be presented first to the Executive Committee which may sub-
m J"be same to the Council. When adopted by a majority of the
the Cde-. f the Council, such amendment shall become a part of
the Code wr. approved by the President of the United States.
SEC. 4. If an rel ber of the Textbook Publishing Industry is
also a publisher or pl -ler of any product subject to the regula-
tions of any other code wlln,. .has been accepted by the President of
the United States, the provisis of this Code and amendments
thereto shall apply to and shall affect only that part of his business
which is included in the Textbook Publis);,g Industry and its prod-
ucts as herein defined.
SEC. 5. Such of the provisions of this Code as are not required to
be included therein by the National Industrial Recovery Act mayv
upon recommendation of the Executive Committee, and with the
approval of the President of the United States, be modified or elimi-
nated as changes in circumstances or experiences may indicate. They
shall remain in effect unless and until so modified or eliminated, or
until the expiration of the Act.
SEC. 6. If any provision of this Code is declared invalid or unen-
forceable, the remaining provisions thereof shall nevertheless con-
tiinue in full force and effect in the same manner as if they had been
separately presented and approved by the President of the United
SEC. 7. This Code shall be in effect within ten days following its
approval by the President of the United States.