Citation
Code of fair competition for the wholesaling or distributing trade as approved on January 12, 1934 by President Roosevelt

Material Information

Title:
Code of fair competition for the wholesaling or distributing trade as approved on January 12, 1934 by President Roosevelt
Portion of title:
Wholesaling or distributing trade
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
U.S. Government Printing Office
Publication Date:
Language:
English
Physical Description:
p. 69-81 : ; 24 cm.

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Subjects / Keywords:
Wholesale trade -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

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Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1625-59."
General Note:
"Approved Code No. 201."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004917237 ( ALEPH )
632333827 ( OCLC )

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Full Text




Approved Code No. 201 Registry No. 1825-59


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION
FOR THE

WHOLESALING OR

DISTRIBUTING TRADE


AS APPROVED ON JANUARY 12, 1934
BY
PRESIDENT ROOSEVELT


WE DO OUR PART


UNIV.K F. FL U8l.
DEP E 1. 1
2. 1
lU.. DE0 -O 3. l

U.8. DEPOMTORY


executive Order
better of Transmittal
ode


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


S
Fon. sale by the Superintendent of Documents. Washington, D.C. - Price 5 cents


Approved Code No. 201


Registry No. 1625-59


1


























This publication is for sale by the Superintendent of Documents, Government
Printing Offl W\:aliington, D.C., and by district offices of the Bureau of Foreign
and Domestic Co.immerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
B-oton, Mass.: 1S01 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1700, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detrnit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indiainpolis. 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.: 40S Federal Building.
Memphis, Tenn.: 229 Federal Building.
Miinneapiolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk. Va.: 400 East Plume Street.
Philadelphia. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, MRI.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Building.













Approved Code No. 201


CODE OF FAIR COMPETITION
FOR THE

WHOLESALING OR DISTRIBUTING TRADE

As Approved on January 12, 1934
BY
PRESIDENT ROOSEVELT


Executive Order

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.
AppIroval recommended:
HUGH S. JOHNSON,
Adm inistrator.
THE WHITE HousE,
January 12, 1934.
(69)




3022S --313-2--34














The PRESIDENT,
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 TRADE

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
(70)









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
commodity divisions.
FI NDINGS
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
membership therein.
(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.
Respectfully,
HUGH S. JOHNSON,
A dm i ;sfrator.
JANUARY 1, 1934.










CODE OF FAIR COMPETITION
FOR THE

WHOLESALING OR DISTRIBUTING TRADE


ARTICLE I-PURPOSES
i
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.
ARTICLE II-DEFINITIONS
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
compensation.
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.
ARTICLE III-HouRS
SECTION 1. Marhnum Hours and receptions.-(a) No whole-
saler or distributor shall cause or permit any employee, except an
(72)









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
each week.
(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
herein.
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
twenty (20).
(f) Female employees performing substantially the same work
as male employees shall have the same rate of pay as such male
employees.
(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
Buttons
Charcoal and Packaged Fuel
Cycle Jobbers
Dry Goods
Electrical Supplies
Embroidery and Lace
Floor Covering
Furriers' Supplies
Hardware
Hats and Caps
Jewelry (including Watchmakers' and Jewelers' Supplies)
Men's Novelty Jewelry
Men's Wear Buttons
Notion, Thread & Women's Garments
Supplies
Radio
School Supplies
Sheet Metal
Silverware
Twine and Cordage
Upholstery and Decorative Fabrics
Wall Paper
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
Authority.
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;
and
(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
Authority; and
(3) To attempt to adjust and,'or to report the .ame to the Ad-
ministrator; and
(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
powers:
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







78

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
paragraph.
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
the Act.
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,
and allowances.
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
proper.
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.

ARTICLE X--MODIFICA-TION

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.

ARTICLE XI-MONOPOLIES

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
enterprises.
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





































































j:, "'




Full Text

PAGE 1

App r oved C ode N o . 20 1 Registry No. 1625-59 , ,. NATIONAL RECOVERY ADMINISTRATION CODE O , F FAIR COMPETITION FOR THE WHOLESALING OR DISTRI B UTING TRADE AS APPROVED O N JANUA R Y 1 2, 1934 BY . ..., __ "" PRESIDENT ROOSEVELT WE DO OUR PART x ecu t iv e Ord e r etter of Trans mitta l 3. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Super i n tendent of Documents, Washington, D.C. ----Price 5 cents

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This publication is for sale by the Superintendent of Documents, Government Printing Offie:e, Washington, D.C., and by di trict offices of the Bureau of Foreign 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 W ells Street. Cleveland, Ohio: Chamber of Commerce . D allas, Tex.: Chamber of Commerce Building. Detroit, Mich.: 01 First National Bank Building. Houston, Tex.: Chamber of Commerce Building. India n a poli s, Ind. : Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo. : 1028 Baltimore A venue. Los Angeles, Calif. : 1163 South Broadway. Louisville, Ky.: 40 Federal Building. M emphis, 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 Building.

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Approved Code No. 201 CODE OF FAIR COMPETITION FOR THE WHOLESALING OR D ISTRIB UTING TRADE As Approved on January 12, 1934 BY PRESIDENT ROOSEVELT Executive Order An applicatio n 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 "\Vholesaling or Distributing Trade, and hearings having been h eld thereon and the Admini trator having 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 Code of Fair Competition complies in all res pects with the pertinent provi ion s of Title I of said Act and that the requirements of clauses (1) and (2) of subsectio n (a) of Section 3 of the said Act have been met: NO\V, THEREFORE, I, Franklin D. Roo se velt, President of the Unite d States, pursuant to the authority vested in me by Title I of the National Indu trial Recovery Act, approved June 16, 1933, and otherwi se, 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. ApproYal recommended: HuGHS. JoHNSON, Ad1ninistrator. THE vV RITE HousE, J anum' y 12, 19 34 . (69) 30228----313-2----34

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The PRESIDENT, The TV H oUJSe. Sm: This i a report of the Hearing on the Code o:f Fair Competition :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 qua . lified and authorized representatives of the Trade, complying with the statutory require ments, said to represent 75 percent in number and ov e r 80 perc-ent in volume of the Trade which could be include d in this code. THE TRADE The vVholesale Trade according to the Census o:f Distribution (1929) is made up of 169,702 establishments with net sales o:f $69,291,545,000. However, a substantial portion of the wholesale trade comes under codes developed under the Agricultural Adjustment Administration, or previously covered under N.R.A. manufacturing and distribution codes . A net total of 45,043 establishments with net sales of $15,323,429,000 are under the Wholesaling or Distributing Trade Code as submitted. Approximately 460,000 em ployees are affected by this code. It is estimated that somewhat 1nore 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 percent. This should absorb about hal:f of the unemployment in the Trade as compared with 1929. PROVISIONS OF THE CODE The code provides :for a work week o:f 40 hours. Outs ide deliv erymen, maintenance men, outside repair serv ice men, and installation men are permitted to work 48 hours per week. Provision is made whereby an employer may work an e mployee 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 l ess than 500,000 population or in the immediate vicinity . The trade practices proposed in Article VII of the Code are not in any re spect objectionable. Article VIII, Section 1, provides for the possibility of setting up price differential s ootween different classes of buyers, thus recognizing the :functional discount de sired by (70 ) •

PAGE 5

71 who l esa l e r s and distributors. All actions of this type are with the advice and sub j ect to the approval of the Administrator. T he administration o f the Code i s organized in accordance with co:rr;tmodity div i s i o n s . FIN,DINGS I find that: ( a ) T he Code will promote the policies and purposes of Title I of the A ct, including removal of obstructions to the free flow of inte r state and foreign commerce which tend to diminis h the amount thereof and will provide for the general welfare by promoting the organization of indu try for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor a n d management unde r adequate governmental sanction s and super visions, by eliminating unfair competitive practice , b y promoting the fullest po sib l e utilization of the pre ent productive capacity of industries, by avoiding undue restriction of .production ( e xcept as may be temporarily r equired), by increasing the consumption of indu trial and 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 employeetl; and is classified by me as a major industry. (c) The Code as approved complies in all re pects with the pertinent provisions of Title I of the Act, including without limitation S u bsection (a) of Section 3, Sub ection (a) of Section 7, and Sub sect i on (b) of Section 10 thereof; and that the 26 applicant groups are trade groups truly r epre entative of the aforesaid Trade; and that said groups impose no inequitable restrictions on admi sion to membership therein. (d) The Code is not designed to and will not permit monopolies or monopoli tic 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 deprive d of the right to be heard prior to approval of said Code. For these reasons, I recommend that the Code b e approved. Respectfully, HuGHS. JoHNSoN, A d1T&inis trator'. JANUARY 1, 1934.

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CODE OF FAIR COMPETITION FOR THE WHOLESALI NG OR DISTRIBUTING TRADE ARTICLE I-PURPOSES 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. ARTICLE II-DEFINITIONS Wholesaler or Distributo1.-For the purposes of this Code, a "wholesaler" or "distributor" shall be defined as any individual, partnership, as ociation, corporation, or other firm, or a definitely organized div is ion thereof, definitely organized to render and rendering a gener al distribution service, which buys and maintains at his or it place of business a stock of the lines of merchandise which it distributes; and which through salesmen, advertising, and/or salespromotion devices, sells to retailers and/or to institutional, commer cial, and/or industrial users; but which doe s 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 Oonsumzr.-The term "ultimate consumer" as used herein is defined as a purchaser for home and pers onal use, and not for use or consumption in trade or business or by institutions. term "employee" as used herein includes any one engaged in the trade in any capacity receiving compe nsation for his services, irrespective of the nature or method of payment of such compen ation. Employer.-The term "employer" as u sed herein includes anyone by whom s uch employee i s compensated or employed. Presid ent, Act, Administrator.-The terms "President," "Act," and "Admini trator" as u sed 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 . ARTICLE III-HouRs SECTION 1. Mawimu1n Hours and Exceptions.-(a) No whole saler or distributor shall cause or permit any , employee, except an (72)

PAGE 7

73 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 1nay work one extra hour, but such hour is to be included within the maximum hours permitted each week. (c) Outside deliverymen, maintenance men, outside repair service men and installation men to work forty-eight ( 48) hours per week. (d) Watchmen shall work not more than fiftysix (56) hours nor more than six ( 6) days in any 7 -day period. (e) An employer may work an employee such hours as may qe 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 reas onable period out for lunch. SEc. 2. E1nploy1n en t by Several E1nployees.-N o employer shall knowingly perm .it any employee to for any time which, when totaled with that already performed with another employer or em ployers in this trade/industry, exceeds the maximum permitted herein. ARTICLE IV-vv AGEs SECTION 1. Llfinimwm Rates of Pay.-The minimum rates of pay shall be as follows : (a) In cities of 500,000 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, Kentucky, l\1aryland, District of Columbia, Tennessee, Alabama, l\Essissippi, Arkansas, Louisiana, Oklahoma, and Texas. (d) A part-time employee or one paid on an hourly bas]s shall be paid at an hourly rate not l ess than that obtained b y 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. \Yages paid during any period to employees on a piece-rate basis shall an hourly rate n?t l ess than that specified above for part-tune and than paid on an hourly basis. ( e) J unwr employees between the apes of 16 and 18 years in clusive, may ?e paid at the rate of two dollars ( $2 .00) less per than the mm1mum wage rate per week otherwise applicable to them for the first 1 2 months of their employment; and learners over 18

PAGE 8

74 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 e mployees 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 t en (10), or :fraction thereof, employees above twenty (20). (:f) Female employees performing substantially the same work as male emplo yees shall have the same rate of pay as such male employees. (g) 'Vage be p aid weekly or semimonthly in lawful money or by negotiable check. SEc. 2. No employ 8 • whos e 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 hours are reduced 20% or more shall have his or her full-time weekly earnings reduced by more than 10% . . ARTICLE V-GENERAL LABOR PROVISIONS SECTION 1. Minimmn Age Requirem ents.-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 employer 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. E ' mploy c es' and Em-ployers' Dwties.-(a) Employees shall have the right to organize and bargain collectively through repre entatives 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 refrain from joining, organizing, or assisting a labor organization of his own choosing, and (c) Employers shall comply with the ma.ximum hours of labor, minimum rates of pay, and other conditions of employment, approved or presc ribed by the President. SEc. 3. P1eced ence of Stmte Laws.-N o provision in this Code shall supersede any State law which imposes on employer more stringent requirem ents as to age of employees, wage.-:;, hours of work, or as to safety, health, sanitary, or general working conditions, or insurance, or fire protection, than are imposed by tllis code. SEc. 4. R eclassification of Employees.-No employer shall recla -sify employ ees or duties of occupations performed or engage in any other subterfuge for the purpose of defeating the purpo es or pro visions of the Act or of this Code.

PAGE 9

75 SEc. 5. Posting Oode.-Each employer shall post in conspicuous places, accessible to employees, copies of Articles I to V, inclusive, of this Code. AnTICLE VI-CoDES AND THE ADMINISTRATION THEREOF SECTION 1. General and Supplmnental Oodes.-(a) To provida 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 commodity divisions hall 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 supplemental code for each division, after hearing before the Administrator and approval by the President. SEc. 2. Creation and Organization of G ene ral Wholesale and Divisio'JW;l Wholesal e Oode Authorities.-(a) The creation of a General Code Authority to cooperate with the Administrator in the administration 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 Com .. modity Divisions are hereby provided: 1 Beauty and Barber Supplies Buttons Charcoal and Packaged Fuel Cycle Jobbers Dry Goods Electrical Supplies Embroidery and Lace Floor Covering Furriers' Supplies Hardware Hats and Caps Jewelry (including Watchmakers' and Jewelers' Supplies) .Men' s Novelty Jewelry l\1en's vVear Buttons Notion, Threatl & Women's Garments Supplies Radio School $upplies Sheet Metal Silverware Twine and Cordage Upholstery and Dec orative Fabrics Wall Paper vVoolen and Trinuning Garment Supplies 1 Others may be added from time to time and s u c h furthe r Divisions as the Admini strator may find to be duly represl.'ntative. Provide d that the Administrator, after due notice and bearing, may amend these Divisious by enlarging o r contracting them, or by consolidating or furthe r dividing one or more of u cb Divisions.

PAGE 10

76 (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 Administrator may appoint not more than three members, without vote, to serve for the term of six and twelve months, respectively, f rom 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 Commodity Divi ion to act as a member of the General Code Authority. (e) The Divisional Code Authority for ea , ch Division shall be composed of not le ss than three (3) nor more than twentyone (21) wholesalers or distributors, or representatives thereof, in such Division, who shall be elected, in accordance with a fair method, as pro vided in the supplemental Code of each Division. The Administrator may appoint two members, without Yote, to serve for the term of six months respectively from the date of appointme nt. SEc. 3. Duties of Trade Associations-Code A1tthorities to be R epresentative.-(a) Each Trade Association directly or indirectly participating in the selection or activities of the General and/or Divi ional Code Authorities shall: (1) impose no inequitable re strictions on membership, and (2) submit to the Aclmini . trator true copies of its articles of association, by-law regulations and any amendments when made thereof, together with such information as to n1.embership, organization, and activities as the Administrator may deem nece ssary to effectuate the purpose of the Act. (b) In order that the General and Divi ional Code Authorities shall at all times b e truly r epresentative of the Trade and in other resp ects comply with the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and, thereafter, if h e shall find that the General Code Authority or any Divis ional Code Authority i s not truly r ep r esentative or doe not in any other re spec t comply with the provisions of the Act, may r e quest an appropdate modification in the method of selection of any such Code Authority. SEc. 4. Assenting to Code and Payment of Cost of Administ?ation.-\Vholesalers or distributors shall be entitled to participate in and share the benefits of the activities of their Divi ional Code Authority, and through such Divisiona l Code Authority to participate in and share the b ene fits of the activities of the General Code Authority, by to and comp lying with the requiremenL of such Code and sustaining their rea onable shar e 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 hall be determined by each Authority, re pectively, ubject upon reYiew to the eli approval of the Administrator, on the ba is of volume of business, the number of DiYi, ions in which a member may operate, and the extent of his operations in each Division, and/ or such other factors as may be deemed

PAGE 11

77 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. Soo. 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 intBrests of the several divisions and the activities of the several Divisional Code Authorities so as to prevent conflicts of authority and to 1ninimize overlapping of powers; und (2) To hear all matters pertaining to the provisions of the General Code which may be submitted to it by any Divis ional Code Authority; and (3) To attempt to adjust andjor to report the same to the Administrator ; and (4) To exercise any other general and lawful powers which may be necessary to secure performance of the provisions of the Act. (b) Each Divisional Code Authority shall have the followi1ig powers: First. vVith 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 Division which it represents such r eports as are neces sary 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 functioning 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 Code by his Divisional Code Authority, shall have the right to have such matter submitted to and considered by the General Code Authority for its action, as provided in Section 5 (a) of this Article. Second. With respect to the specific provisions of the Supplemental Codes which govern one or more, but not all, Divisions 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 c essary to effectuate the purposes of its Supplemental Code; and (2) May, upon its own initiative or complaint of any wholesaler or distributor in such Division, make investigation as to the functioning and observance of any provis ion of its Supplemental Code; and ( 3) 1\fay 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

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78 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 paragraph. SEc. 6. lnf01'mation for 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. l nterpretations.-The Admini trator shall from time to time, after consultation with the Gen eral Code Authority and/or with a Divisional Code Authority, i . ue s uch administrative interpretations of the various provisions of the General Code, or of any supplemental Code, res pectively, as are necessary to effectuate their purpose. SEc. 8. Undue Hardships Imposed by Ood es.-Where the administration of the provisions of the General Code impose an unusual or undue hardship upon any wholesaler or distributor, or upon any Divi ion, or where the administration of the provisions of any Supplemental Code imposes an unusual or undue hardship upon any wholesaler or distributor affected thereby, such wholesaler or distributor, or such division, may make application for relief to the Administrator, who, after such public notice and hearing a s he may deem n ecessary, 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 the Act. ARTICLE VII-TRADE PRACTICES SECTION 1. Inaccurat e Advertising.-N o member of the trade shall publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material 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, services, or the nature or form of the bu iness conducted. SEc. 2. False Billing.-No member of the trade shall knowingly withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. SEc . 3. I naccurate Lab elling.-N o member of the trade shall brand or mark or pack any goods in any manner which is intende d to or does dec ive or mislead purchasers with rec:::pect to the brand, grade, quality, quantity, origin, s ize, substance, character, nature, finish: material content, or preparation of such goods. SEc. 4 . lnaccu•rat e R efe1'enoes to Comp e titors, etc.-No member of the trade hall publish advertising which refers inaccurately in any material particular to any competitor s or their g c ods, prices, val'ue , credit term , policies, or services. SEc. 5. Threats of La1.0 Suits.-N o m ember of the trade hall publi h or circulate unjustified or unwarranted threat of legal proceedings '\\hich tend to or have the effect of harassing competitors or in-

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79 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 privilege not extended to all customers of the same class, for the purpose of influ encing a sa le. SEc. 7. Bribing Em.ployees.-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 r epresentative of another in relation to the business of the employer of such employee, the principal of such agent or the represented party, without the knowledge of suc h 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 m ercial bribery as hereinabove defined. . SEc. 8 . Interfere nce with Anothe r's Oontracts.-No wholesaler shall attempt to induce the breach of an existing contract between a competitor and his employee or customer or ource of supply; nor shall any such wholesaler interfere with or obstruct the performance of such contractual duties or services . SEc. 9. Oomcion.-No member of the trade shall require that the purchase or l ease of any goods be a prerequisite to the purchase or lease of any other goods. SEc. 10. P rotection to R etailers.-It s h all be an unfair trade practice for Wholesalers who secure a substantial portion of their business from members of the retail trade to enter into competition with retailers by selling m erchandise 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 u s e of employees of such customers. Nothing in this section, however, shall prevent bona fide sa l es by suc h wholesaler s to their own em ployees of merchandise that is for the personal us e of such emp loyees. ARTICLE VIII-PERMISSIVE TRADE PRACTICES SECTION 1. D iffe1•entials.-In any division in which manufaGturers, importers, mill , or other primary sellers se ll coincidentally to seYera l cla sses of buyer. the Divisional Code Authority, subject to the approval and with the advice of the Administrator, may arrange for a conference of all inter ested parties, including primary sellers or the Code Authority governing them, for the purpo e of defining and establishing price differentials which shall be fair and reas onable in relation to the nature and extent of the distributing serv i ces and functions rendered by eac h buying cia s. Such differential. shall include all element s affecting t h e net price, such as discount s, terms, and allowances. The Divisional Code Authority, with the advice and consent o the admini bator and after all interested parties shall haYe been given an opportunity to be heard on the matter, shall formally an-

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80 nounce the price differentials which are deemed fair on specific products. 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 eli continued, 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 buy direct from manufacturers. Nothing in this section shall be construed to prevent reasonable and fair price differentials from b eing allowed on the basis of quantity purchased or s uch other factors as the Administrator shall deem proper. SEc. 2. Othe r Unfair Trade Practices.-Subject to the approval of the President after hearing there may be established, in any Supplemental Code, trade practice rules covering such other subjects as conditions in its specific Division may require, together with regulations concerning such principles as loss limitation, selling below co t, price reporting. Any violation of these provis ions shall be an unfair trade practice. ARTICLE IX-PrusoN-MADE GooDs P ending the formulation of a compact or code b e twe e n 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 su bscribing 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 coinJ?etitive basis with simi la . r 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 aler 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. Afte r May 31, 1934, no whole saler or distributor shall knowingly sell o r offer for sale such merchandise . Nothing in this sect ion, 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 con strued to supersede or interfere with the operation of the Act of Congres approved J anuary 19 , 1D29. being Pnbl1ic , No. 669 of the 70th Congress and entitled "An Act to dive s t goo ds, \Yare , and merchandi e manufactured, pro duced or mined by convicts or pri oners of their interstate character

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81 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 aid Hawe -Cooper A ct, the said effective date being January 19, 1934. ARTICLE X-MODIFICATION SECTION 1. This General Code and a ll c od es . upplemental there to, and all the provisions thereof, are expressly mad e ubject to the right of the President, in accordanc e with the pro vi ions of s ub e cti o n (b) of S e ction 10 of the Act, from time to time to cancel or modify any order, approval, license, rule, or regulatio n i s u e d unc l e r Title I of said Act and specifically, but wi thout limitatio n, t o the right of the President to canc el , or m o d ify his approv al o f the e Co d es or any condition s impose d by him upo n h is a p proval thereo f . SEc. 2. This Gen eral Code and all c od es supple m ental e xcept as to provis ion s r equire d by the A ct, may b e m od ifi e d on the basi of experienc e or change s in circums t a n ce , s u c h modificatio n to be bas ed upon application to the Administrator and s u c h n otic e and hearing a s he shall specify, and to be c ome effective on approval of the Administrator. ARTICLE XI-MoNOPOLIEs No provision of this General Code, nor of any codes supple m ental thereto, shall be so applied as to p ermit monopolies, or m o nopoli stic practices, or to eli1ninate, oppres s, or discriminate against small enterprises. ARTICLE XII-APPLICATION OF ConE Every whole saler or distributor, ex cept thos e who on the eff e ctive date of this code are governe d by any other code of fair comp etition under the administration of the National Recovery Administration or the Agricultural Adjustment Administration, s h a ll 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 wholesal ers or distributors, who within sixty (60) days after the eff e ctive 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 lOth day after date. Approved Code No. 2.01. Registry No. 1625-59. 0

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UN IVERSITY OF FLORIDA 1111111111111111111111111111111111111111111111111111111111111111 3 1262 08728 5234