Atpwcd Code No. 201-Supplement No. 2
Registry No. 410-A-04
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Wholesaling or Distributing Trade)
AS APPROVED ON MARCH 16, 1934
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Approved Code No. 201-Supplement No. 2
SUPPLEMENTARY CODE OF FAIR COMPETITION
WHOLESALE WALLPAPER TRADE
As Approved on March 16, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHOLESALE
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 Wholesale Wallpaper Trade
to the Code of Fair Competition for the Wholesaling or Distributing
Trade, and hearings having been duly held thereon and the annexed
report on said Code, containing 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
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed 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
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. D. WVHIITESIDE,
March 16, 1934.
46829--425-91-34 t 1
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report of the Hearing on the Code of Fair Competi-
tion for the Wholesale Wallpaper Trade, conducted in the Pan
American Room of the Mayflower Hotel, on November 16, 1933.
The Code which is attached was presented by duly qualified and
authorized representatives of the Trade, complying with the statu-
tory requirements, said to represent 62 percent in number and
approximately 90 percent in volume of the Trade which could be
included in this Code.
The decline of the Trade in the past three years renders the census
data obsolete. According to statistics furnished by members of the
Trade there are approximately 450 establishments with net sales of
$19,000,000 in 1932 while the estimated sales in 1929 amounted to
$30,000,000. The Trade employs about 2,700 persons.
PROVISIONS OF THE CODE
Since this code is supplemental to the General Code of Fair Com-
petition for the Wholesaling or Distributing Trade, it contains no
The provisions containing supplemental definitions are inclusive
The supplement to the administrative provisions establishes a
Divisional Code Authority for the Trade, which is representative of
the different elements in the Trade. According to the statistics sub-
mitted by the Trade, the National Wallpaper Wholesaler's Associa-
tion contains among its members, or is authorized to represent in
the administration of the code, 62 percent of the number of concerns
in the Trade. Its members sell approximately 90 percent of the total
sales volume. The selection of five representatives of the Code Au-
thority by the Association and two representatives by nonmembers
of the Association is representative of the Trade.
The trade practices proposed in the supplement to Article VIII
are not in any respect objectionable. The provisions governing the
distribution and marking of sample books establish uniform prac-
tices in connection with these activities and are designed to promote
fair dealing in the Trade.
The Deputy Administrator in his final report to me on said Code
having found as lherin set forth and on the basis of all the proceed-
ing.s m this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign com-
merce which tends to diminish the amount thereof and will provide
for the general welfare by promoting 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 supervision, by elimi-
nating unfair competitive practices, by promoting the fullest pos-
sible utilization 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 is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof;. and that the applicant group is
a trade group truly representative of the aforesaid Trade; and that
said group imposes no inequitable restrictions on admission to mem-
(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 this Supplemental Code has been approved.
HUGH S. JOHNSON, Administrator.
MARCH 16, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WHOLESALE WALL PAPER TRADE
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
To further effectuate the policies of Title I of the National Indus-
trial Recovery Act, the following provisions are established as a
Supplemental Code of Fair Competition for the Wholesale Wall
Paper Trade to the Code of Fair Competition for the Wholesaling
or Distributing Trade, as provided by Article VI, Section 1 (c)
thereof, and such Supplemental Code shall be considered as a part
of and in connection with said Code for the Wholesaling or Distrib-
uting Trade; and both Codes shall be binding upon every member of
such Wholesale Wall Paper Trade.
SUPPLEMENTING ARTICLE II OF GENERAL CODE
The term wholesaler or distributor", shall be defined as a
person or firm, or definitely organized division thereof, definitely
organized and rendering a wholesale distribution service in Wall
Paper, which buys and maintains at his or its place of business a
stock of Wall Paper which it distributes; and which, through sales-
men, advertising and or sales promotion devices, sells to retailers
and decorators, but which does not sell in significant amounts to
The term Divisional Code Authority ", as used herein, shall
mean the Divisional Code Authority for the Wholesale Wall Paper
Trade, a division of the Wholesaling or Distributing Trade.
The term General Code ", as used herein, shall mean the Code of
Fair Competition for the Wholesaling or Distributing Trade.
Jobs.-The term "Jobs" is defined to mean all unsold Wall
Papers which have been in a line of a wholesaler in any current
year and which shall not be included in the line or lines of such
wholesaler in the succeeding current year.
SUI'PLEMENTING ARTICLE VI, SECTION 2 I E OF THE GENERAL CODE
SEC. 1. The Divisional Code Authority for the Wholesale Wall
Paper Trade shall consist of seven (7) members of the trade, five
(5) to be elected by the Board (if Directors of the National Wall
Paper Wholesalers' Association; and two (2) representatives to
bt. clecteod by members of the trade who are not members of said
As~ci;,tion, in a manner to be approved by the Administrator.
ARTICLE IV-TRADE PRACTICES
SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE
As expressly permitted in Article VIII, Section 2, of the Code of
Fair Competition for the Wholesaling or Distributing Trade, the
following practices constitute additional unfair methods of compe-
tition for members of the Wholesale Wall Paper Trade and are
1. Loss Limitation Provision.-Selling merchandise, except to
other Wall Paper Wholesalers, at less than cost. Such cost shall
include the actual net invoice purchase price, plus transportation
charges to seller's warehouse; and further, when fixed and published
from time to time by the Divisional Code Authority, subject to the
approval of the Administrator; an allowance for actual wages in-
volved in effecting the sale and delivery of the goods by the whole-
saler or distributor.
Exceptions: Notwithstanding the provision of this section, any
wholesaler or distributor may sell any article of merchandise at a
price as low as the price set by any coml)etitor in his trade area on
merchandise which is identical or essentially the same, if such com-
petitor's price is set in conformity with this provision. A whole-
saler or distributor who thus reduces his price to meet a competitor's
price as above defined, shall not, be deemed to have violated the
provisions of this section if such wholesaler or distributor imme-
diately notifies the Divisional Code Authority of such action and all
facts pertinent thereto; nothing in this section, however, shall
apply to the sale of jobs, seconds. damaged goods or close-outs.
2. Sale of Jobs, etc.-The selling of current year's goods as jobs,
seconds, damaged goods or close-outs, by any wholesaler or distrib-
utor to any buyer, before the thirty-first day of December in any
No jobs, seconds, damaged goods or close-outs shall be sold by
any wholesaler or distributor to any buyer at a price below 331/3%
of the price quoted on new goods to buyers of the same type. There
shall be no restriction as to selling price of jobs after they have
been out of the current year's line for more than one year.
3. Selling Sample Books Below Cost.-The making of samplebooks
for any customer and failing to include in the cost of said sample
books the cost of the Wall Paper used therein, charged at the same
rate by said wholesaler or distributor to said customer as the goods
said customer has purchased for stock, and in addition, any other
expenses incurred in the making of said sample books. This shall
not apply to one book known as Book of Selections" furnished to
a customer by a wholesaler or distributor with his order. No more
than one sample book or Book of Selections shall be given to a
customer by a wholesaler or distributor.
4. Sample Book Marking.-Indicating, marking or printing "fair
values by any method other than plain dollars and cents figures.
5. Issuance of Samrple Books.-Issuance of current year's sample
books to retailers or decorators before January 1 of any year. The
term "current year" is defined to mean the twelve (12) months'
period succeeding December 31 of each year.
6. Protection to Retailers.-The selling of merchandise to ultimate
consumers for personal use at wholesale prices, or the supplying of
merchandise to industrial, civic, institutional or similar customers,
for the personal use of employees of such concerns, at wholesale
prices, thereby engaging in competition with retailers.
7. Sample Book Distribution.-(a) To curtail waste due to the
over-distribution of sets of sample books, stands, and/or other forms
of collective sample showings, the quantity thereof distributed by any
wholesaler or distributor during the period of the effectiveness of
this Code, shall not exceed an amount equal to the average annual
number of such sets distributed by said wholesaler or distributor
during the five years immediately preceding January 1, 1934; except
that if the five year average is less than in the year 1933, then said
wholesaler or distributor may distribute in the year 1934 as many
sets of sample books, stands, and/or other forms of collective sample
showings as he did in the year immediately preceding. This method
of computing the number that shall be distributed shall apply to
each succeeding year during the effectiveness of this Code.
(b) If reasonable requirement can be shown for the distribution
of a greater number of such sets of sample books than herein pro-
vided for, privilege for such additional distribution or new distribu-
tion shall be given upon application to the Divisional Code Author-
ity on evidence found by that Authority to justify such additional
requirement, provided that any such finding of the Code Authority
shall be subject to the review and disapproval of the Administrator.
Nothing in paragraphs (a) and (b) above shall apply to a whole-
saler or distributor annually issuing less than one hundred (100)
sets of sample books.
8. Sample Book Mark;ng.-(a) All sample books, stands, and/or
other forms of collective sample showings shall have a fair value"
marked or printed on the back of every sample, plainly in dollars
and cents per single roll or yard. This paragraph shall not be con-
strued to establish the price at which a retailer or decorator shall sell
the paper so marked.
(b) All sample books, stands, and/or other forms of collective
sample showings shall have the retailer's or decorator's net cost for
room lot purchases marked or printed by a uniform symbol, as
adopted by the Divisional Code Authority. In no case shall this
symbol appear except on the back of the sample, and not in any way
as a part of either the pattern number or the marked or printed '" fair
value." (Paragraph (b) of this section not compulsory until after
April 1 1934.)
(c) 6n sidewalls and/or ceilings, the prices marked or printed in
sample books and/or Floor Stand Books, shall be based upon the
unit roll as approved by the United States Department of Com-
merce in Commenrcial Standard CS 16-29. On borders, prices shall
be quoted on the basis of a single width lineal yard.
(d) All sample books for free distribution shall be marked as
b(ing the property of the wholesaler or distributor issuing said books,
and that they are loaned to the concern to whom issued for the
periiil designated. The title to said sample books shall remain in the
distributor or wholesaler.
9. Freight Allowance.-In wholesale distribution of Wall Paper
applying to dealers' purchases for stock, all wholesalers or distribu-
tors shall sell on the basis F.o.b. own warehouse, with no greater
freight allowance than railroad freight equalization, carload rates
or L.C.L. rates, as the case may be, to nearest competing wholesaler
or distributor or manufacturer to the customer being sold. No
freight shall be prepaid by any wholesaler or distributor on dealers'
purchases for stock. This clause does not apply to purchases in
room lots when sold at advance prices above the wholesaler's or
distributor's price for stock orders.
10. Terms of Sale.-In wholesale distribution applying to dealers'
purchases for stock, the terms shall be no more favorable than the
following: 91 days net. Discount for cash payment 3%, 30 days;
2%, 60 days; 1 %, 90 days. An additional deduction to be allowed for
cash payment within discounting periods for .hipments made in
September, 4%; in October, 3%; in November, 2r ; in December, 1'%.
In wholesale distribution applying to dealers' purchases in room
lots, the terms shall be no more favorable than the following: Dis-
count of not to exceed 3% for cash payment 10th of the month fol-
lowing the date of purchase.
11. Ungrounded Wall Paper.-In the interests of the ultimate
consumer, all surface printed Wall Papers in which the raw stock
has not been fully grounded before the design (top colors) is printed
thereon, shown in sample books, stands and/or other forms of col-
lective sample showings, shall be plainly printed with the word un-
grounded" on the back of samples of such goods. No Wall Paper
made on ungrounded stock shall be marked in any way to indicate
that it is a non-fading paper.
ARTICLE V-EFFECTIVE DATE
This Supplemental Code shall become effective on the tenth day
Approved Code No. 201, Supplement No. 2.
Registry No. 410-A-04.
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