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Apm-" nd Code No. 201-Supplement No. 20
Registry No. 1308-06
CODE OF FAIR COMPETITION
(A Division of the Wholesaling or Distributing Trade)
AS APPROVED ON AUGUST 13, 1934
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Approved Code No. 201-Supplement No. 20
SUPPLEMENTARY CODE OF FAIR COMPETITION
ELECTRICAL WHOLESALE TRADE
As Approved on August 13, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ELECTRICAL
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 Electrical Wholesale Trade
to the Code of Fair Competition for the Wholesaling or Distributing
Trade, and hearings having been duly held thereon, and the an-
nexed report on said Supplemental 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 Presi-
dent, 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
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
ROBERT L. HOUSTON,
August 13, 1934.
REPORT TO THE PRESIDENT
The 1White House.
Sin: This is a report of the Hearing on the Supplemental Code
of Fair Competition for the Electrical Wholesale Trade, a division
of the Wholesaling or Distributing Trade, held in the Sun Parlor of
the Washington Hotel, on January 10, 1934. The Supplemental
Code, which is attached, was presented by duly qualified and author-
ized representatives of the Trade, complying with the statutory
According to statistics furnished by members of the Trade it is
estimated that in 1933 there were approximately 950 concerns en-
gaged in the Trade, which will come under the proposed definition in
this Supplemental Code. These concerns did an estimated business
of $150,000,000, and employed approximately 14,000 persons.
HOURS AND WAGES
This Code is supplemental to the Code of Fair Competition for
the Wholesaling or Distributing Trade and contains no hours and
wages provisions, the members of the Trade being governed by the
hours and wages provisions of the last mentioned Code.
OTHER PROVISIONS OF THE CODE
The provisions containing supplementary definitions are consid-
ered inclusive and accurate.
The supplement to the administrative provisions of the Code of
Fair Competition for the Wholesaling or Distributing Trade estab-
lishes a Divisional Code Authority which is fairly and adequately
representative of all the different elements in the Trade.
The Trade Practice Provisions are not considered in any way
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 organi-
nation of industry for the purposes of cooperative action among
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanction and super-
vision, by eliminating unfair competitive practices, by promoting
the fullest possible use of the present productive capacity of indus-
tries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the consumption of indus-
trial and agricultural products through increasing purchasing power,
by reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Trade normally employs not more than 50,00) em-
ployees and 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) of
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 to membership therein.
(d) The Supplemental Code is not designed to and will not per-
mit 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
(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.
HUGH S. JOHNSON,
AUGUST 13, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE ELECTRICAL WHOLESALE TRADE
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
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 Electrical Wholesale Trade, pursuant
to Article VI, Section 1 (c) of the General Code of Fair Competition
for the Wholesaling or Distributing Trade, approved by the Presi-
dent of the United States on January 12, 1934. All provisions of
the said General Code which are not in conflict with the provisions
of this Supplemental Code are hereby specifically incorporated by
reference in this Supplemental Code and made part hereof. Such
provisions of the General Code together with the provisions of this
Supplemental Code are the standards of fair competition for and
are binding upon every member of the said Electrical Wholesale
SUPPLEMENTING ARTICLE II OF GENERAL CODE
SECTION 1. For the purposes of this Supplemental Code, a whole-
saler or "distributor" or member of the Trade" is defined to
mean any individual, partnership, association, corporation, or other
form of enterprise, or any division thereof, which renders a general
distribution service and which purchases and maintains at his or
its place of business a stock of electrical apparatus, appliances, ma-
terials and, or supplies sold for use in connection therewith (except
radio apparatus and supplies), or which acts as a middleman or
broker buying electrical apparatus, appliances, materials and/or
supplies sold for use in connection therewith (except radio appa-
ratus and supplies) but which does not necessarily maintain a stock
of such merchandise, and which through salesmen, advertising,
and/or sales-promotion devices, sells to retailers and/or to institu-
tional, commercial, and/or industrial users, and/or to any other
buyers except ultimate consumers as defined in the General Code.
SECTION 2. The term Trade" as used herein is defined to be the
business in which wholesalers or distributors as above defined engage.
SECTION 3. The term consignment as used herein is defined to
mean the delivery by a member of the Trade to any person, as agent,
purchaser or otherwise under any agreement or understanding ex-
pressed or implied pursuant to which the receiver of the merchan-
dise may at his option return any of such merchandise or claim any
credits with respect thereto.
SECTION 4. The term Divisional Code Authority ", as used herein,
shall mean the Divisional Code Authority for the Electrical Whole-
sale Trade, a division of the Wholesaling or Distributing Trade.
SECTION 5. The term General Code ", as used herein, shall mean
the Code of Fair Competition for the Wholesaling or Distributing
SUPPLEMENTING ARTICLE VI, OF THE GENERAL CODE
SECTION 1. (a) The Divisional Code Authority shall consist of
eleven (11) members (from among the Trade or representatives
thereof,) eight (8) to be nominated by the Executive Committee of
the National Electrical Wholesalers Association and elected by mem-
bers of the Trade who are also members of the Association in ac-
cordance with a method to be approved by the Administrator, and
three (3) to be chosen by those members of the Trade who are not
members of such Association, by a .method to be approved by the
Administrator. No member of the Trade shall have more than one
member on the Divisional Code Authority.
(b) Only those members of the Trade shall be allowed to vote in
the election of members of the Divisional Code Authority who sign
or shall have signed a statement of assent and compliance to this
Supplemental Code and the General Code.
(c) The terms of office of members of the Divisional Code Au-
thority and the method of electing their successors, whether for full
new terms or for unexpired terms shall be established in the Bv-laws
of the Divisional Code Authority, subject to the approval of the
SECTION 2. The Divisional Code Authority shall have the follow-
ing duties and powers in addition to those prescribed in the General
(a) To appoint a Trade Practice Committee, which shall meet
with the Trade Practice Committees appointed under such 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 em-
ployers under this Supplemental Code and under such others, to the
end that such Fair Trade Practices may be proposed to the Admin-
istrator as an amendment to this Supplemental Code and such other
(b) To appoint in each Electrical Wholesale District, as deter-
mined by the Divisional Code Authority subject to the approval
of the Administrator, a Code Commission to assist the Divisional
Code Authority in administering this Supplemental Code; provided,
however, that nothing herein shall relieve the Divisional Code Au-
thority of its responsibilities as such.
(c) To organize, elect officers, hire necessary employees and per-
form such other acts as may be necessary for the proper administra-
tion of this Supplemental Code.
(d) To adopt by-laws, 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, however, that nothing herein shafl relieve the
Divisional Code Authority of its duties and responsibilities under
this Supplemental Code, and that such trade associations and
agencies shall at all times be subject to and comply with the pro-
(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,
members of the Trade subject to this Supplemental Code shall
furnish such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act to
such federal and state agencies as he may designate; provided that
nothing in this Supplemental Code shall relieve any member of the
Trade of any existing obligation to furnish reports to any govern-
ment agency. No individual report shall be disclosed to any other
member of the Trade or any other party except to such other govern-
ment agencies as may be directed by the Administrator.
SEcTION 3. Nothing contained in this Supplemental Code shall
constitute the members of the Divisional Code Authority partners
for any purpose nor shall any member or members of the Divisional
Code Authority be liable in any manner 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 Authority,
exercising reasonable diligence in the conduct of his duties hereunder,
he liable to anyone for any action or omission to act under this
Supplemental Code, except for his own wilful malfeasance or
SECTION 4. 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 mterest, the Administrator
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and for further con-
sideration by 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.
SEcraoN 5. 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 by 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 for 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
contribution 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) Each member of the Trade shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Au-
thority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the Trade complying with the code and contribut-
ing to the expenses of its administration as hereinabove provided,
unless duly exempted from making such contribution, shall be
entitled to participate in the selection of members of the Code Au-
thority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
(e) 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 expendi-
tures in excess of prior budget estimates except those which the
Administrator shall have so approved.
ARTICLE IV-TRADE PRACTICES
SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE
SECTION 1. It shall be an unfair trade practice for any member
of the Trade to quote a lump sum price unless such quotation shows
the price of each item and unless the total equals the sum of all
SECTION 2. Quantity discounts shall be computed on the basis of
the quantities shipped and/or billed to a single buyer at one time;
provided, however, that when a wholesaler's stock of an item is not
sufficient to make a complete shipment a second shipment may be
made from the wholesaler's or a manufacturer's stock, and the quan-
tity discounts computed on the basis of the original order.
SECTION 3. It shall be an unfair trade practice for any member
of the Trade to deliver merchandise to any customer beyond the
metropolitan area of the city within which the distributor is located
without making a charge equal to that made by a common carrier
for the said delivery; provided, however, that transportation costs
may be equalized by any individual member of the Trade acting
independently as between recognized wholesaling centers. Where
necessary, the Divisional Code Authority at the request of the Code
Commission, subject to the approval of the Administrator, shall
define the metropolitan areas within a district.
SECTION 4. It shall be an unfair trade practice to ship any goods
on consignment except products of manufacturers whose general
plan of distribution is by consignment and not by sale for resale,
and except where the Divisional Code Authority under unusual
circumstances may allow.
SECTION 5. It shall be an unfair trade practice to accept returned
goods after sixty days from the date of shipment, or to accept re-
turned goods within such sixty day period, without making a service
'charge at least equal to the seller's cost of handling the same;
provided, however, that this section shall not apply: (a) if the
occasion for the return is the fault of the member of the TVde; or
((b) if such credit is made on account of insolvency or financial em-
barrassment of the customer and is reported to and approved by
the Divisional Code Authority; or (c) to the extent that this Section
may conflict with the law of any State.
SECTON 6. It shall be an unfair trade practice for any member
of the Trade to sell any electrical apparatus, appliances, materials
and/or supplies sold for use in connection therewith (except radio
apparatus and supplies) governed by this Supplemental Code from
which the name plate, serial number, or any other identifying mark
of the manufacturer, if any is customarily attached, has been effaced
SECTION 7. It shall be an unfair trade practice for any member of
"the Trade to employ subterfuge, directly or indirectly, to avoid
or attempt to avoid the provisions of this Supplemental Code or the
purposes and intent of the National Industrial Recovery Act, which
are to increase employment, provide better wages, promote fair com-
petitive methods, better business conditions, and promote the public
SSECTION 8. It shall be an unfair trade practice for a member of the
,Trade to grant to a customer a discount for cash at a percentage
greater than the percentage of discount for cash received by such
member of the Trade on the same merchandise, or to allow extra
discounts for anticipation of payment, or to allow a discount for
cash on accounts remaining unpaid after the tenth of the calendar
month following date of shipment, or to grant any discount for
cash where payment is made by warrant, note or trade acceptance.
SECTION 9. It shall be an unfair trade practice to pay or absorb
any charge for sales promotion material of any nature furnished
by the manufacturer through the medium of the wholesaler to the
dealer; provided, nothing contained herein shall prohibit bona fide
ARTICLE V-PERMISSIVE TRADE PRACTICES
SECTION 1. In any Trade Area, if a majority in numbers and vol-
!ume of all known members of the Trade in said Area vote in favor
of establishing uniform operating hours such a schedule of uniform
*operating hours may be recommended through the Divisional Code
*Authority to the Administrator for approval. After approval by
*the Divisional Code Authority and the Administrator, after such
;notice and hearing as the Administrator may prescribe, said uniform
'hours shall be binding upon all members of the Trade in such Trade
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 Subsection (b) of Section 10 of the National
Industrial Recovery Act from time to time to cancel or modify any
order, approval, license, rules or regulations issued under Title I
of said Act.
ARTrrnC VII-EFFECTInE DAT
This Supplemental Code shall become effective on the 10th day
after its approval by the Administrator, and thereupon the provisions
of the Code of Fair Competition for the Industrial Supplies and
Distributing Trade shall become inapplicable as to any activities of
members of the Electrical Wholesale Trade as hereinbefore defined,
which are covered by this Supplemental Code.
Approved Code No. 201-Supplement No. 20.
Registry No. 1308-06.
UNIVERSITY OF FLORIDA
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