Citation
Amendment to code of fair competition for the retail trade as approved on March 29, 1934

Material Information

Title:
Amendment to code of fair competition for the retail trade as approved on March 29, 1934
Portion of title:
Retail trade
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C.
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
4 p. : ; 24 cm.

Subjects

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

Notes

Summary:
The term "retail trade" as used herein shall mean all selling of merchandise to the consumer and not for purposes of resale in any form, in the continental United States excluding the Panama Canal Zone.
Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1625-2-02."
General Note:
"Approved Code No. 60--Amendment No. 2."

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:
004917220 ( ALEPH )
632307985 ( OCLC )

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Full Text





Approved Code No. 60-Amendment No. 2 Registry No. 1625-2-02


NATIONAL RECOVERY ADMINISTRATION





AMENDMENT TO

CODE OF FAIR COMPETITION

FOR THE


RETAIL TRADE


AS APPROVED ON MARCH 29, 1934


WE DO OUR PART


I .. DE T
U.S. DEPOSITORY


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON 1934


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Approved Code No. 60-Amendment No. 2


Registry No. 1625-2-02


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This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district 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 Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.


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Approved Code No. 60-Amendment No. 2


AMENDMENT TO CODE OF FAIR COMPETITION
FOR THE

RETAIL TRADE

As Approved on March 29, 1934


ORDER

MODIFICATION OF CODE OF FAIR COMPETITION FOR THE RETAIL TRADE
The National Retail Drug Code Authority having submitted for
my approval, in accordance with Schedule A, Section 5 (2) (d) of
the Code of Fair Competition for the Retail Trade the annexed
modification of Article VIII, Section 1 of said Code as applied to
drugs and allied products, an an opportunity to file objections
thereto having been given by notice dated February 20, 1934, and
the annexed report on said modification, containing findings with
respect thereto, having been made,
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to the authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise, do hereby incorporate, by reference, said
annexed report and do find that said modification and the Code as
constituted after being modified comply 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 modification be and
it is hereby approved, and that the previous approval of said Code
is hereby modified to include an approval of said Code in its entirety
as modified, said modification to become effective ten (10) days after
the date hereof.
HUGH S. JOHNSON,
Administrator for Industrial Recoecry.
Approval recommended:
A. D. WHITESIDE,
Division Administrator.
WASHINGTON, D.C.,
March 29, 1934.
50005---425-182--34 (1I













REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: The National Retail Drug Code Authority has submitted the
annexed modification of Schedule A of the Code of Fair Competition
for the Retail Trade as applied to drugs and allied products.
It has been found in the several months during which this Code
has been effective that the loss limitation provision has been unen-
forceable, and as the result the competitive abuse of "loss leader "
selling has continued in about five per cent of the total number of
retail drug outlets to the great hardship of the remaining ninety-five
per cent of the trade.
This modification does not alter the principle set forth in the
original provision. It establishes a definite standard base price
which is universally subject to exact interpretation which the orig-
inal failed to provide.
This modification prevents the five per cent of the trade which has
continued to indulge in predatory price cutting on standard articles
from selling below the cost price paid by the vast majority of smaller
enterprises in the trade.
The Deputy Administrator in his final report to me on said modifi-
cation of said Code having found as herein set forth and on the basis
of all the proceedings in this matter:
I find that:
(a) The modification of said Code and the Code as modified are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions 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 organization of industry for the purpose
of cooperative action among trade groups, by inducing and main-
taining united action of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production (except as may be temporarily required), by in-
creasing the consumption of industrial and agricultural products
through increase ng purchasing power, by reducing and relieving un-
employment, by improving standards of labor, and by otherwise
rehabilitating industry.
(b) The Code as modified complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection (b) of Section 10 thereof.







3

(c) The Code empowers the National Retail Drug Code Authority
to present the aforesaid modification on behalf of the industry as a
whole.
(d) The modification and the Code as modified are not designed
to and will not permit monopolies or monopolistic practices.
(e) The modification and the Code as modified are not designed
to and will not eliminate 2r 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
modification.
For these reasons the modification has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
MARCH 29, 1934.













MODIFICATION OF CODE OF FAIR COMPETITION FOR
THE RETAIL TRADE

Schedule A of the Code of Fair Competition for the Retail Trade
is hereby amended by the addition of a new Section, number 6, as
follows:
"SECTION 6. Loss Limitation P'roiv;x.on.--In place of the provi-
sions of Article VIII, Section 1, the following provision shall apply
to all retailers selling the products -peeified hereinafter:
"' Inasmuch as the vast preponderance of drug store products are
distributed through small drug retailers who are unable to purchase
on a (lquantity basis but who perform services which are essential to
the welfare of those in their communities, and whereas such services
cannot adequately be performed through the facilities provided by
their competitors, and whereas in some cases sales are made to con-
sumers by such competitors at prices below the lowest cost of pur-
chase normally obtainable for such merchandise by small drug
retailers, and whereas in most instances such sales prices are not a
true indication of the general level of prices of such competitors and
no general benefit to those in the community Iccompanies the same,
but such prices are in fact in the nature of bait offers of merchan-
dise to attract trade, it is hereby declared an unfair trade practice
and is prohibited by this code for any drug retailer to sell any drugs,
medicines, cosmetics, toilet preparations or drug sundries at a price
below the manufacturer's wholesale list price per dozen, provided,
however, that in the case of biologicals or other of the above-nmen-
tioned products which are not customarily sold in dozen or greater
lots the Code Authority may fix a comparable unit quantity, and
provided further that any discount, free deal, or rebate which is
made available to all purchasers of dozen lots or comparable quan-
tities, shall be considered as part of the manufacturer's wholesale
list price.' "
Approved Code No. 60. Amendment No. 2.
Registry No. 1625-2-02.
(4)

O














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Approved Code No. GO-Amendment No. 2 R eg istr y N o. 1625 2-02 NATION A L REC O VERY ADMINISTRATION AMENDMENT TO CODE OF FAIR COMPETITION FOR THE RETAIL TRADE AS APPROVED ON MARCH 29, 1934 WE DO OUR PART 0 -. ,.. __ ,.. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 193, For sale by the Superintendent of Documents, Washintton, D.C. --Price 5 cents V

PAGE 2

This publicati o n is for sale by the Superinte nd ent of Documents, Gov ernment Printing Office , W ashington, D.C., and by district offices of the Bureau of Foreign and D o me s tic Comm e rce. DISTRICT OFFICES OF THE DEPARTMENT OF CO1"IMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Al a . : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buff a lo, N.Y.: Chamber of Commerc e Building. Charles t o n, S.C.: Chambe r o f Com m e r ce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 First National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadway. Loui sv ille, Ky.: 408 Federal Building. Memphis, 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. Phila delphia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa.: Chamber of Commerce Building. Portland, Oreg.: 215 New Pos t Office Building. St. Louis , Mo.: 506 Olive Stree t. San Francisca, Calif. : 310 Customhouse. Seattle, Wash.: 80 9 Federal Offic e Building. (II)

PAGE 3

Approved Code No. 60-Amendment No. 2 AMENDMENT TO CODE OF FAIR COMPETITION FOR THE RETAIL TRADE As Approved on March 29, 1934 ORDER l\1oDIFICATION OF CoDE OF FArn COMPETITION FOR THE RETAIL TRADE Th National R etail Drug Code Authority having submitted for my approval, in accordance with Schedule A , Section 5 (2) (d) of the Code of Fair Competition for the Retail Trade the annexed modification of Article VIII, Section 1 of said Code as a pp lied to drug and allied product , and an opportunity to fil e objections thereto having been given by notice dated February 20, 1934, and the annexed report on said modification, containing finding s with re s pect thereto, having bee n made, NOW, THEREFORE, on behalf of the President of the United State , I, Hugh S. John on, Administrator for Industrial R ecovery, pur nant to the authority vested in me by Executive Order of the President, including Executive Order No. 6543-A, dated Dec ember 30, 1933, and otherwise , do hereby incorporate, by reference said annexed report and do find that said modification and the Code as constituted after being modified comply in all respe cts with the pertinent provisions and will promote the policy and purposes of said Title of said Act, and do hereby order that said modification b e and it is hereby approved, and that the previous approval of said Code is hereby modified to include an approval of said Code in its entirety as modified, said modification to become effective ten (10) days after the elate hereof. Approval recommended: A. D. WHITESIDE, HUGHS. JOHNSON, Administra tor for Indust1-ial R ecovery . Division Administrator. WASHINGTON, D.C., March 29, 1934. 60005-425-182-34 (1)

PAGE 4

REPORT TO THE PRESIDENT The PRESIDENT, The White House. Srn: The National Retail Drug Code Authority has submitted the annexed modification of Schedule A of the Code of Fair Competition for the Retail Trade as applied to drugs and allied products. It has been found in the several months during which this Code has been effective that the" loss limitation provi ion" has been unen forceable, and as the re ult the competitive abu e of "loss leader" selling has continued in about five per cent of the total numb e r of retail drug outlets to the great hardship of the remaining ninety-five per cent of the trade. This modification does not alter the principle set forth in the original provision. It establishes a definite standard base price which is universally su bject to exact interpretation which the orig inal failed to provide. This modification prevents the five per cent of the trade which has continued to indulge in predatory price cutting on standard articles from selling below the cost price paid by the v as t majority of smaller enterprises in the trade. The Deputy Administrator in his final repo r t to me on said modifi catjon of said Code having found as herein set forth and on the basis of all the proceedings in this matter : I find that: (a) The modification of said Code and the Code as modified are well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act including the removal of obstruc tions 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 organization of industry for the purpose of cooperative action among trade groups, by inducing and maintaining united action of labor and management under adequate governmental sa nction and supervision, by eliminating unfair competi tive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily required), by in creasing the con sumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) The Code as modified 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. (2)

PAGE 5

3 ( c) The Code empo, er th J ational Retail Drug Cod Authority to pr nt the afor aid mo lification on behalf of the indu try as a whole. ( d) The modification and th Code as modified are not designed to and will not p rmit monopolies or monopolistic practices. ( e) The modification and the Code as modified are not designed to and will not eliminate or oppress small enterprises and will not operate to di criminate again t them. (f) Tho e enoagcd in other steps of the economic process have not been deprived of the right to be heard prior to approval of said, modification. For these reasons the modification has been approved. Respectfully, MARCH 29, 1934. HUGH s. JOHNSON' Administrat01'.

PAGE 6

MODIFICATION OF CODE OF FAIR CO1\1PETITION FOR THE RETAIL TRADE Sch edule A of the Cod e of Fair Competition for the Retail Trade i h e r e b y am e n ded b y the addition of a new Section, number 6 , as f o llow s : "SE CTION 6. Loss Limitat i on P r o visi o n.-In place of the pro-\ i sio n s of Article VIII, Section 1 the following provi ion shall apply to a ll r etaile r s selling the product s pecifi e d h e r einafter: "' Inasmuc h a s the v a s t pre p o n lerance o f drug store product are distributed through s m a ll drug r etaile r s who are unable to purcha ~ e on a quantity b as i s bu t who p erform serv i ces whi c h are e ssential to the w elfare of thos e in the ll' communities , and wherea u c h services cannot ade qu a t e l y b e p erforme d throuo h the facilities provide l by their competitor , and whe r e a in om e c ase ales are made t o c o n sumer s b y s u c h competitors at pric e b e l o w the l o w es t c o s t of pur c ha se n orma ll y obtainable for s u c h m e r chandis e b y small drug r e t a il e r s , and wh e r e a s in mo s t instances u c h ale prices are not a true indicatio n o f the g e n eral lev e l of prices of uch competitors and n o ge n e r a l b e n efi t to those in the community accompanies the sa me, but s u c h prices are in f act in the nature of bait off e r s of merchandi e to attra ct trade, it i s h e r e b y d eclare d an unfair trade practic e and i s prohibite d by this c ode for any drug retailer to s ell any drugs , m e di c i nes, c o s m e tics, toil e t preparations or drug sundries at a price b e lo w the m anufacturer's whole s ale li s t price p e r dozen provided, how e v e r , that in the ca se of biologicals or othe r of the above-mentione d products which are not cu stomarily sold in dozen or greater l o t s the C ode Authority may fix a comparable unit quantity, and provide d further that any discount, free deal, or rebate which is made av ailable to all purc hasers of dozen lots or comparable quantities, shall be considered as part of the manufacturer' s whole ale lis t pric e.' " Approve d Cotle No. 60. Amendment No. 2. R r gi stry No . 1625-2 02. (4) 0

PAGE 7

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