Citation
Code of fair competition for the wholesale automotive industry as submitted on August 11, 1933

Material Information

Title:
Code of fair competition for the wholesale automotive industry as submitted on August 11, 1933
Portion of title:
Wholesale automotive industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
U.S. Government Printing Office
Publication Date:
Language:
English
Physical Description:
11 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Automobile industry and trade -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

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. 1404-3-14."

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:
004938096 ( ALEPH )
649443409 ( OCLC )

Full Text






NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION
FOR THE

WHOLESALE AUTOMOTIVE

INDUSTRY

AS SUBMITTED ON AUGUST 11, 1933



REGISTRY No. 1404-3-14



The Code for the Wholesale Automotive Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry


WE 0OUR PART
J. I JE__


UNITED STATE
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


For sale by the Superintendent of Documents, Washington, D.C. -


- Price 5 cents









































Digitized by the Internet Archive
in 2011 with funding from
University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation


http://www.archive.org/details/codeoffaircompet3471 unit











A CODE OF FAIR COMPETITION APPLICABLE TO THE
WHOLESALE AUTOMOBILE INDUSTRY
GENERAL OUTLINE
(1) Statement of Principles.
(2) Purpose.
(3) Participation.
(4) Trade Practice Rules.
(5) Organization and Administration.
(6) Amendments.
(7) General.

ARTICLE I-STATEMENT OF PRINCIPLES

This Code of Fair Competition, applicable to all wholesalers of
automotive parts, equipment, tools, accessories, supplies, and service
in the United States of America, is based on the following principles:
(1) The Wholesale Automotive Industry is an industry in and
of itself within the meaning of the National Industrial Recovery Act,
and qualifies for recognition because of that fact and because of the
essential services it performs.
(2) The Wholesale Automotive Industry desires to assist the
President of the United States in his program of Industrial rehabil-
itation as embraced in the policies set forth in the National Indus-
trial Recovery Act.
(3) The proper nuintenance of automotive vehicles in the interest
of public safety should be carefully governed both as to character
and installation.
(4) Automotive wholesalers distributing products not allied to
the automotive industry should fully subscribe to and operate under
codes of fair competition a,, approved by the President governing
such products; and that any and all persons, firmni, and/or corpora-
tions engaging in the Wholesale Automotive Industry shall be sub-
ject to the provisions of this Code when same shall have been
approved by the President of the United States.

ARTICLE II-PURPOSE

This Code of Fair Competition governing the Wholesale Auto-
motive Industry is adopted to effectuate the policies set forth in the
National Industrial Recovery Act, as applying to the wholesale dis-
tribution of automotive parts, equipment, tools, accessories, supplies,
and service in order:
(1) to assist in removing obstructions to the free flow of Inter-
state Commerce which tend to diminish the amount thereof;
(2) to assist in enlarging the purchasing power of persons related
to this industry through increase in employment and the payment
of adequate wages to those employed;
8211-33 111









(3) to aid in the rehabilitation of the industry by
(a) the elimination of unfair and destructive competitive prac-
tices within the Wholesale Automotive Industry; by
(b) the elimination of the sale of goods below the cost of produc-
tion and distribution; and by
(c) the stabilization of prices that are fair alike to the consuming
public and to producers and distributors.
ARTICLE III-PARTICIPATION

This Code of Fair Competition shall be applicable to any and all
persons, partnerships, and/or corporations in the United States of
_A eri;ia and its possessions, qualifying under a reasonable interpre-
tation of the following definition of an Automotive Wholesaler:
An Automotive Wholesaler is a person, partnership, and/or cor-
poration actually engaged in the buying of automotive merchandise
and in the reselling of such merchandise to retailers, who maintains
a regularly established place of business, who carries a merchandise
inventory enabling him or it to supply the reasonable demands of the
clientele served, and who generally performs the recognized func-
tions of a wholesaler in a manner acceptable to his or its suppliers
on the one hand and to his or its customers on the other.
In the co i-tiruction of the above definition, the following rules
shall apply together with such other nonconflicting rules as the Na-
tional Administrative Committee, hereinafter provided for, may
determine.
(1) The buying of merchandise in wholesale quantities for the
purpose of and the reselling of same to retailers is the distinguishing
mark of the Wholesaler.
(2) Whenever a person, firm, and/or corporation engaged in the
production of automotive merchandise assumes the recognized func-
tions of the wholesaler of such merchandise, the buying of materials
out of which products which he wholesales are fabricated constitutes
" buying of automotive merchandise in wholesale quantities within
the meaning of the above definition, and, insofar as related to the
sale to retailers of said products, his status shall be of the Wholesaler.
(3) Transfer of automotive merchandise in wholesale quantities
between and among subsidiaries and affiliated concerns for the pur-
pose of reselling same to retailers shall constitute buying of auto-
motive merchandise in wholesale quantities ", as contemplated in
this definition.
(4) The machining of automotive products, as generally per-
formed in machine shop operations of automotive wholesaler estab-
lishments for the retailing customers of said such establishments and
the supplying of same to said retailing customers shall be deemed
doing a wholesale automotive business within the meaning of the
above definition.
(5) The term automotive merchandise shall not be construed to
include the completed car, truck or other automotive vehicle, tractor,
trailer, stationary internal combustion engine, aeroplane, and marine
engine, but the sale of accessories attached to the car, truck or other
automotive vehicle, tractor, trailer, stationary combustion engine,
aeroplane and marine engine, separately priced and charged for,








shall, insofar as the sale from the wholesaler or distributor or from
the manufacturer of the completed car, truck or other automotive
vehicle, tractor, trailer, stationary internal combustion engine, aero-
plane and marine engine, direct to the retailer is concerned constitute
wholesaling within the meaning of this definition of an automotive
wholesaler.
(6) The term automotive merchandise" shall include any and
all parts equipment, tools, accessories, and iipplies used in the repair
and maintenance of automotive vehicles, tractors, trailers, stationary
internal combustion engines, and aeronautic and marine engines,
excepting tires and petroleum products and such other products
related to the automotive industry as may be governed by Codes
applying to the wholesale distribution of same separately approved
by the President of the United States; and excepting buildings and
building appliances used in connection with the repair and main-
tenance of automotive vehicles. It shall include Shop Equipment "
and Tools ", as those terms are commonly understood and as fur-
ther enlarged within the meaning of Rule #1, Article V of the Code
for the Petroleum Industry; and the sale of such to any and all
automotive repair and maintenance establishments shall be deemed
wholesaling of same.
(7) The term "retailer" shall be construed to include any and
all persons, partnerships, and 'or corporations regularly engaged in
the sale of automotive merchandise and or service connected with
the repair and maintenance of automotive vehicles, as defined or
expanded in sections 5 and 6 of this Article, to the consuming public,
and as enlarged or embraced in that Trade Practice Rule of this
Code entitled Classification of Customers."
(8) This definition of an automotive wholesaler, nor no part or
section of it, shall be construed in such manner as to interfere with
the free flow or exchange of merchandise from one wholesaler to
another.
ARTICLE IV-LABOR

(1) On and after the effective date of this Code employers in the
Wholesale Automotive Industry shall adopt a maximum work week
for employees which shall not be in excess of an average of 44 hours
per week for any twelve months' period, and the maximum hours of
work for any one week shall be 48 hours. From this rule shall be
excepted traveling sales people and executives, provided that the
latter, in working beyond the stipulated 48 hours per week, do not
perform the work or take the place ordinary performed or taken
by employees subject to this code.
On and after the effective date the minimum wage that shall be
paid by any employer to any employee engaged in the wholesaling of
the products of the Wholesale Automotive Industry and in labor
operations directly incident thereto shall be 350 per hour. And pro-
vided further that incidental labor and learners may be paid not less
than 300 per hour, but the total amount paid to such incidental labor
and learners shall not exceed in any calendar month 10% of the
total wages paid to all labor by such employer.
No person under 16 years of age may be employed in this indus-
try. However, any employer in this Industry, located in a section








of the country where a lower minimum wage rate has been pre-
scribed and accepted by the President in the Code of another indus-
try for employees in the same crafts or classifications of labor em-
ployed in this Industry shall have the right to employ such crafts or
classifications of labor at such lower rate.
Nothing in this Code shall prevent various district and local
groups of this industry, as provided in the administrative plan under
this Code, from setting higher rates of minimum wages or a lower
number of maximum hours per week in their individual Codes of
Fair Competition should such be deemed necessary to effectuate the
policies of the National Industrial Recovery Act.
(2) Employees in the Wholesale Automotive Industry shall have
the right to organize and bargain collectively through representatives
of their own choosing, and shall be free from any interference, re-
straint, or coercion, in the designation of such representatives, or any
self organization.
(3) No employee in the Wholesale Automotive Industry, and no
one seeking employment, shall be required as a condition of employ-
ment to join any organization, including a company union, or to
refrain from joining a labor organization of his own choosing.
(4) Employers and employees of labor in the Wholesale Automo-
tive Industry shall comply with the maximum hours of labor, mini-
mum rates of pay, and other working conditions approved or pre-
scribed by the President of the United States.
(5) The employers in the Wholesale Automotive Industry pro-
pose to continue the open-shop policies heretofore followed in which
unusually satisfactory and harmonious relations with the employees
have been maintained.
(6) The maximum hours of any store or service operation in
wholesale-automotive establishments shall be sixty-six (66) hours
in any one week between the hours of 7 A.M. and 6 P.M., excluding
Sunday and national holidays, as follows: New Years Day, Wash-
ington's Birthday, Decoration Day, July 4, Labor Day, Thanksgiv-
ing and Christmas, and/or such other days as are universally
observed in any given district.
Emergency calls may be cared for in hours not specified in the
preceding section, provided any and all emergency operations shall
be reported immediately to the secretary or other designated agency
of the local group of the locality in which such emergency opera-
tions are performed.
What constitutes emergency service shall be determined by the
local groups.
ARTICLE V-PRICES

(1) There shall be established for the Wholesale Automotive In-
dustry a basic chart of standardized account headings suitable for
and applicable to wholesale automotive establishment ts. This basic
chart, when completed, shall become a part of this Code and shall
include cost of material, handling, hauling, machining, freight, sell-
ing, management, rent, overhead, insurance, and imputed interest on
investments at 6%.
The following listing is intended to illustrate the nature of said
basic chart of standardized account headings, which may be modified







by the National Administrative Committee hereinafter provided for
in such manner as to best achieve the purpose for which same is
established:
Gross sales including shop labor.
Other income.
Sales deductions.
Cost of goods and labor sold.
Selling expenses.
Warehouse and delivery expenses.
Administrative expenses.
Office expenses.
Machine shop expenses.
General expenses.
Other expenses, including interest on investments.
The purpose of this basic chart of standardized account headings
is to determine an average, fair, and reasonable cost of doing business
in the Wholesale Automotive Industry.
(2) Sales below such ascertained average, fair, and reasonable cost
shall be deemed unfair competition and in violation of this Code,
when same shall have been approved by the President of the
United States.
(3) Each person, partnership, and/or corporation in the Whole-
sale Automotive Industry shall make available to the Secretary
or other designated person of the district or local group in the area
in which he or it is located, a complete list of prices at which he
intends to sell his products.

ARTICLE TT-TRADE PRACTICE RULES

Upon approval by the President of the United States of this Code
of Fair Competition, the following Trade Practice Rules shall apply
to automotive wholesalers as embraced in the definition of same con-
tained in this Code:
(1) Misbranding.-Marking or branding of products should be
done in every instance possible. Such marking, branding. or failure
to brand done for the purpose or effect of misleading or deceiving
purchasers or prospective purchasers with respect to the quantity,
quality, size, grade, or substance of the product purchased is an
unfair method of competition.
(2) Misrepresentation.-Selling or offering to sell any automotive
product with intent, to deceive purchasers or prospective purchasers
as to quantity, quality, size, grade, or substance of such products is
an unfair method of competition.
(3) Classification of Cu'stfomewr..-To prevent unfair methods of
competition, a fair and equitable classification of customers shall he
made by each district or local group and such classification shall be
strictly adhered to by all operating in that group. The above classi-
fication of customers shall include fleet owners, car distributors, car
(lealers. independent repair shops. machine shops not qualifying as
wholesalers, service stations, filling stations, battery and tire shops,
electrical repair shops, governmental agencies, or subdivisions thereof
including State, County, or Municipal, chain stores, mail-order







houses, accessory and supply stores, and other forms of retail units
as may appear.
(4) Branded Products.-We submit that a manufacturer of a
branded product who, through ingenuity, expenditure of money, ad-
verti-si g, and other means, builds up public acceptance and public
dteemanld for his product should be entitled to a property right in the
good-will attaching to that product, which should be shared by his
distributors and retailers; when this principle is dettermiiljed upon by
government policy it shall be deemed unfair trade practice for any
outlet to deviate from the price established by the manufacturer of
such branded product.
(5) Discrimination Between Territories.-The quoting of prices or
the selling of merchandise to customers in one territory at a price
lower than is offered to cu:-to lers- of similar classification in other
territories for the same quantity, grade, quality, or style, due allow-
ances being made for difference in transportation costs, is an unfair
method of competition, except that transportation costs may be
equalized as between recognized jobbing points.
(6) Discr;imination in Credit Termns.-Unwarranted granting of
credit, usually results in large bad debt losses which are an economic
waste. iSuch losses constitute a portion of operating expenses and
are reflected in selling prii~s, thus placing an unfair burden on those
customers who pay bills when due. Discrimination in credit terms
between customers is an unfair method of competition and tends to
prevent employers from maintaining the wage scale contemplated in
the Recovery Act.
(7) Discrimination in Pr;-i._ as RegardJ. Split Ship menOts.-The
acceptance of orders for large quantities of merchandise by whole-
salers and then making smaller delivcri-' at the large quantity price
is an unfair method of competition. It should be noted that where
contracts with customers, which are matters of general knowledge,
provide for rebates on quantity purcha-es, these are an exception to
the above rule.
(8) Special Close-Out Prices.-When a wholesaler deems it nec-
essary to liquidate a surplus slow-moving stock of merchandise and
wishes to offer such merchandise for sale at prices less than his regu-
lar prices, he shall file with the Secretary of the regional group in
which he is located, a statement showing the quantity, sizes, and
styles of merchandise so offered for sale and his reason for such
liquidation. On the first of each month, thereafter, he shall file
with this Secretary a report showing current sales of such merchan-
dise and the remaining quantities on hand to be liquidated. On such
sales, all invoices for merchandise so sold shall plainly display the
following wording: Special Close-Out Prices." Failure to ob,('rve
this rule, or increasing such stock during liquidation at the special
prices is an unfair method of competition. It is reconmmneided with
reference to the above rule that any wholesaler finding himself in
this position should first offer the surplus of merchandise to the man-
ufacturer thereof, and, failing disposal of such merchandise by this
method, should offer same to his competitors in the regional group.
(9) Consignments.-We believe that the consigning of merchan-
dise by wholesalers is to be deprecated and should be avoided. If
a wholesaler should offer merchandise on consignment to a pur-







chaser, the line of merchandise, the price, and conditions under
which it is consigned, and the name of the cn. rignee shall be re-
ported to the Secretary of the Regional Group, in order that the
competitors in the group may have full cognizance of the consign-
ment so that no undue advantage be derived from the effect of this
consignment. Violation of the above is unfair competition.
(10) C'ommerciol b/'icbery.-Directly or indirectly to give or per-
imit. to be given, or offer to give money or anything of value, to
agents, employees, or representatives of customers or prospective
customers or to agents, employees, or representatives of competitors'
ciietomers or prospective customers, without the knowledge of their
employers or principals, as an inducement to influence their em-
ployers or principals to purchase or contract to purchase from the
proffer of such gift or offer, or to influence such employer or prin-
cipal from contracting to deal with competitors is an unfair method
of competition.
The practice of giving or permitting to be given, or holding one-
self as giving, so-called "Free Deals and free mechanical service
in connection with the sale of merchandise or mechanical service
by wholesale automotive establishments is unsound practice for the
reason that the cost of such so-called "Free Deals" and "free"
mechanical service generally must be and is included in the price
charged for merchandise or mechanical service in connection with
which the so-called "Free Deal" and "free" mechanical service is
alleged to be given.
(11) Price stabilization.-The principle of price stabilization
should apply to wholesale distribution. Just as the manufacturer
should have the right to name and enforce his resale schedule, which
because of competitive influences will generally represent reasonable
prices based on the cost of labor and material, wholesalers should
be permitted, in their respective zone or area, to stabilize prices on
merchandise and service, such stabilization being based on the prin-
ciple that merchandise and/or service should not be sold below a
fair. reasonable, and average cost, as provided in Section 2, Article
V. When this has been done, violation of the ruling is unfair
competition.
(12) Uncthical practices.-Unethical or offensive practices not
otherwise specified in this Code may and shall be stopped by deci-
sion of a majority of the wholesalers in the regional group of the
region in which the offense occurs: Proviled, That appeal from the
decision may be made to the National Administrative Committee.
(13) Cocrcion.-The practice of coercion in the wholesale distri-
bution of automotive products in any form whatsoever or through
the instrumentality of any devices whatsoever is unfair competition
and it obstructs the full flow of interstate commerce, assurance of
which we understand to be a purpose of the Recovery Act.
(14) Bulk selling.-Bulk sales in the Wholesale Automotive In-
dustry shall be done in such manner as not to constitute deviation
from the rules of fair competitive practices, as embraced in this
Code when approved by the President. and the National Adminis-
trative Committee, hereinafter provided for, shall have authority
to prescribe procedure governing bulk selling in such way as to







accomplish the application of fair competitive practices as contained
herein.
(15) Unfair Adr,'1 tis;ig and Selling Practit'f..-Any and all
practices in advertising and selling merchandise and/or -erv\ice in
the Wholesale Automotive Industry which may have the capacity or
tendency to undermine public confiden,'e in advertising announllce-
ments or other sellingg representations generally, or the effect of in-
juring unfairly the sales or goodwill of a competitive product or
service are unfair and against the public interest. Specifically, prac-
tices coming within the scope of such unfair practices are Mislead-
ing Advertising, Deceptive Statements, Unfair Competitive Claims,
Disparagement of Competitors, Underselling Claims, and Bait '
Offers.
ARTICLE VII-ORGANIZATION AND PRO( EDIliE

(1) The Administrative Committee for the operation of the
Wholesale Automotive Industry under this Code will consist of five
(5) representatives, including the Preqident of the Motor and Equip-
ment Wholesalers Association; five (5) representatives, including the
Chairman of its Wholesaler's Division of the National Standard
Parts A.-ncinltion; three (3) members, including the Pre-idlent, of
the National Aut:,llIootive Parts Association; three (3) members,
including the President of the Automotive Engine Rebuilders' As-
sociation; three (3) rmelmbers, including the Chairman of its Dis-
tributor's Division of the Automotive Electric Association; and, in
addition, the Coliiinii..ss.ioner of the Automotive Whole.'ale s Research
Institute.
The committee shall select a chairman who shall have and exercise
such authority as may be delegated to him by the Committee, which
shall have charge of all communications and conferences between the
Wholesale Automotive Industry and the President of the United
States, or his agents, concerning the approval or amendment of this
Code or any of the provisions or rules relative thereto.
The National Administrative Committee shall have the authority
to increase its number by such additions as may be needed from
time to time, provided that the ratio of representation as here estab-
lished shall remain constant.
Each association shall have authority to fill and shall fill vacanicies
occurring in its division of the committee.
(2) The National Administrative Committee shall be the general
admnini.- trativre, planning, and coordinating committee for the Whole-
sale Automotive Industry in relation to any and all matters connected
with the National Industrial Recovery Act. It shall have the author-
ity to caiie to exist such district or area organization as imiay be
nece.-.ary for the efficient administration of this Code of Fair Com-
petition when same shall have been approved by the President of
the United States.
In line with the preceding there shall be established throughout the
United States 12 Districts, coinciding with the Federal Reserve
Districts, designiiited as Nira Wholesale Automotive District-, which
may be modified, expanded as to number, or otherwise changed as
in the judgment of the committee may be necessary for the efficient
adiiniistration of this code.







In each of said districts shall be established such local groups as
may be found necessary.
The National Administrative Committee shall provide such plan
of organization and procedure for the district and local group as in
its judgment may be necessary for the efficient functioning of said
gro ps.
(3) The committee shall be specifically clothed with authority to
request any and all information relative to the carrying out of the
provisions of the code from any person, firm, and/or corporation
subject to this Code.
(4) The Committee may form, or cause to be formed, any and all
committees which it deems advisable to effectuate cooperation in the
administration of this code, the National Industrial Recovery Act,
and the rules and regulations thereunder. Each association shall
have the authority to fill and shall fill any and all vacancies occurring
among its membership on any and all committees.
(5) Members of all committees shall serve until June 15, 1935,
when their terms shall expire, unless the emergency under which the
National Industrial Recovery Act has been enacted shall have been
declared by the President of the United States to have ceased to exist.
(6) The National Administrative Committee shall determine from
time to time the number of its members requisite to a quorum. It
shall also determine the number of members requisite to a quorum
of any and all coniniittees created under its authority.
It shall adopt rules of procedure for such committees and for the
National Administrative Committee.
(7) Each committee shall fix its own meeting dates and places of
meetings. Members of committees may delegate alternates to act
for them at the meetings of the committees.
(8) The National Administrative Committee shall have authority
to select from its membership a National Administrative Executive
Committee consisting of five (5) per-ons, one of whom shall be
Chairman of the National Administrative Committee, who shall
also be Chairman of the National Administrative Executive Com-
mittee. The National Administrative Executive Committee shall
have all the authority and powers of the National Administra-
tive Committee in the interim between meetings of the National
Administrative Committee.
(9) The National Administrative Committee shall have the au-
thority to make, and shall make, such assessments as may be necessary
to cover the actual expense of the administration of this Code. All
such assessments shall be on a fair and equitable basis, considering
the nature and extent of operations carried on in the Wholesale Au-
tomotive Industry by those subject to assessments, and assessments
shall be paid promptly by those assessed when due.
An offending party shall be subject to an assessment as shall be im-
posed by the trial body in an amount not to exceed the provisions
of the Industrial Recovery Act as approved by Act of Congress
June 13, 1933.
All such assessments shall be distributed as directed by the Na-
tional Administrative Committee for the purpose of assisting in de-
fraying the actual expenses of the administration of this code.








ARTICLE VIII--AM N D 1 N: T.s

This Code of Fair Competition may be amended as follows:
(1) The Prit.-ideiit of the United States may by virtue of au-
thority granted to him, on occasion, cancel or modify any order,
approval, license or regulation is-utd, made, or approved thereunder
as provided in Section 10-B of the National Industrial Recovery Act.
(2) It may be amended by a two-thirds vote of the entire mem-
bership of the National Admiinistrative Committee, and the amend-
ment shall take effect when approved by the President, provide
that reasonable public notice of the proposed amendment shall have
been given for ten days to the Wholesale Automotive Industry, and
provided that any of its provisions may be canceled or modified
and any approved rule is--ued tlheriiundl r shall ie ineffective if such
be necessary to conform to any action by the President in Section
10-B of the National Industrial Recovery Act.

ARTICLE IX-GENERAL

To secure the adoption of this Code Competition, and to give
full effect to its provisions when same shall have been approved by
the President of the United States, the following shall apply:
(1) There shall be formulated a statement, de-cribed as Exhibit
"A", showing the names of the organizations cooperating in the
presentation of this Code to the proper governmental authorities,
the purpose for which they exist, the organization plan through
which they operate, and the extent of their operations in the
Wholesale Automotive Industry. The specific purpose of this
;-ttemienit shall be to show that said organizations are representative
of the Wholesale Automotive Industry and they are specifically em-
powered to assemble any and all data for the accoulpli.lhnmelit of
this purpose.
(2) At the earliest possible time, the various groups established
in the several districts shall file a statement with the National
Administrative Co iiiiittee hereinlbefore provided for, giving the
following information:
(a) Copy of Constitution and By-laws.
(b) Names of all committees having to do with any and all
provisions of this Code and its administration in the several
districts.
(c) Schedule of maximum hours of labor applicable to employees
of wholesale automotive e-,tabli-h1ments in the districts.
(d) Schedule of wage rates applying to employees in wholesale
automotive establishments in the districts.
(e) Procedure developed by the district or local group for the
adlliniitration and the enforcement of this Code, and of any and all
rules and regulations pertaining thereto, as prescribed by the Presi-
dent of the United States.
(f) Any and all information bearing upon the application of
this Code which may from time to time be reqiue.ted by the National
Administration Committee.
(3) In the event that any district group fails to submit within a
reasonable time information as required in Section 2 above, the Na-






11

tional Administrative Committee, if it deems it nece.- ;ary, is
authorized to act for said district group, and iupun its own initiative,
to assemble from the membership of said district group such in-
formation as is provide for in Section 2 above.
(4) No provision in this Code shall be interpreted or applied in
such manner as to promote monopolies, permit or encourage unfair
competition, eliminate or oppress small enterprises, or discrimiinate
against small enterprises.
(5) The effective date of this Code shall be the tenth day after
the date of its approval by the President of the United States.

0




UNIVERSITY OF FLORIDA
IIIll3 1262 08584 347111I
3 1262 08584 3471




Full Text

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NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR C OMPETITION FOR THE I WHOLESALE AUTOMOTIVE INDUSTRY AS SUBMITTED ON AUGUST 11, 1933 REGISTRY No. 1404-3-14 The Code for the Wholesale Automotive Industry in its present form merely reflects the proposal of the above-mentioned industry, and none of the provisions contained therein are u. to be regarded as having received the approval of the National Recovery Administration as applying to this industry WE QO OUR PART UNITED STAT~ GOVERNMENT PRINTING OFFICE W ASHI GTON : 1933 For ale by the Superintendent of Documents, Washington, D.C. ------Price 5 cents

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A CODE OF FAI R COMPETITION A P PLICABLE TO THE WH O LESALE AUTOM O BILE INDUSTRY GENERAL OUTLINE (1) tatem nt of Principl s . (2) Purpo e. ( 3) Participation. (4) Trade Practice Rules. ( 5) Organization and Administration. ( 6) Amen lments. (7) General. ARTICLE I-STATEMENT OF PRINCIPLES This Code of Fair Competition, applicable to all wholesalers of automotive parts, equipment, tools , acce sories, s upplies, and service in the United States of America, i based on the following principles: (1) The "\Vholesa le Automotive Industry is an industry in and fit elf within the meaning of the National Industrial Recovery Act, and qualifie for recognition be ause of that fact and because of the ential ervires it performs. (2) The ,vholesa le Automotive Industry desires to assist the Pre ident of the United States in his program of Industrial rehabilitation as embraced in the policies set forth in the National Indu trial Recovery Act. (3) The proper m.aintenance of automotive vehicle in the intere t of public afety hould be carefully governed both a to character and in tallation. ( 4) AutomotiYe whole aler di tributing product not allied to the automotiYe industry should fully s ub sc ribe to and operate under code of fair competition as apr rov e d by the Pre ident governing uch pro lucts; an l that any an l all persons, firm s , .and /or corporation engao-ing in the v, holesa le Automotive Indu try shall be ubj ct to the pro-vi.-ions of this ode when ame hall have been approved b the Pre iclent of the United States. ARTICLE II-P RPOSE Thi ocl of Fair ompetition governing the ,vhole ale Auton1otiYe In lu try i adopte l to effectuate the Ioli i e et forth in the ational In ln trial Rec v ry Act, a .applyino to th whole ale di -1 ribution of aut motive parts, quipment, tool , acce ories, supplies, and ervi in or 1 r : (1) to a i t in removinO' ob trnction to the free flow of Inter tate Comm rce which tend to diminish the amount thereof; (2) to a i tin enlarO'inothe purchasing pow r of per on r lated to this in lu. tr3 through increa e in employm nt and the payment of ad quat \Yage to tho employed; 211-33 (1)

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2 (3) to aid in the rehabilitation of the in :lustry by (a) the elimination of unfair and destructive competitive prac tices within the "\Vholesale Automotive Industry; by (b) the elimination of the sale of goods below the cost of production and distribution; and by ( c ) the stabilization of prices that are fair alike to the consuming public and to producers and distributors. ARTICLE III-PARTICIPATION This C o de of Fair Competition shall be applicable to any and all person s , partnerships, and/or corporations in the United States of America and its po ss e ss ion s , qualifying under a reasonable interpretation of the following definition of an Automotive "\Vholesaler: An Automotive Whole aler is a person, partnership, and/or corporation actually engaged in the buying of automotive merchandise and in the reselling of such merchandise to retailers, who maintains a regularly e stablished place of business, who carries a merchandise inventory enabling him or it to supply the reasonable demands of the clientele served, and who generally performs the recognized func tions of a wholesaler in a manner acceptable to his or its suppliers on the one hand and to his or its customers on the other. In the con struction of the above definition, the following rules shall apply together with such other nonconflicting rules as the National AdministratiYe Committee, hereinafter provided for, may determine. (1) The buying of merchandis e in wholesale quantities for the purpose of and the reselling of same to retailers is the distinguishing mark of the vVhole aler. (2) "\Vhenever a person, firn1, and/or corporation engaged in the production of automotive merchandise assmnes the recognized func tions of the wholesaler of such merchandise, the buying of materials out of which products which he wholesales are fabricated constitutes "buying of automotive 1nerchandise in wholesale quantities" within the meaning of the above definition, and, insofar as related to the sale to retailers of said products, hi status shall be of the vVholesaler. (3) Transfer of automotive merchandise in whole ale quantities between and among subsidiaries and affiliated concerns for the purpose of reselling same to retailers shall con titute "buying of auto motive merchandis e in whole ale quantities' ' , as contemplated in this definition. ( 4) T_he mac~1ining of auto~11otive pr:oducts, as generally per formed 1n machine shop operat10ns of automotive wholesaler e -tab lishments for the retailing customers of said such establishments and the supplying of same to said retailing customers shall be deemed doing a wholesale automotive business within the meaninoof the above definition. 0 ( 5) The term "automotive merchandise" shall not be con trued to include the compl eted car, truck or other automotive vehicle tractor trai~er, stationary internal com~ustion engine, aeroplane, and marin~ engine, but the sale of accessories attached to the car, truck or other automotive vehicle,. tractor_, trailer, stationary combustion engine, aeroplane and marine engine, separately priced and charged for,

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hall, in ofar a th ale from the wholesal r or di tributor r from th manufa tur r of the completed car, truck or other automotive y hi 1 tra tor trailer, tationary int rnal combu tion no-in , aero1 lan an l marin eno-in , dir ct t the r tail r i cone.: rn l c on titut ,,h 1 alino within the m aninoof thi l finiti o n of an automotiY whol aler. ( ) The term ' automotive merch an li e ' hall includ any an l all part quipment, tools, ac ori \ an l upplie u eel in the r pair and maint nance of automoti e vehicles, tractor , trailers, tationary int rnal combu tion enaines, and aeronautic and marine engine , ex pting tires and petroleum products and such other produc ts r late l to the automotive industry as may be gov rned by Codes a1 plying to the wholesale di tribution of same separately approved by the Pre ident of the United States; and excepting buildings and builcling appliances used in connection with the repair and maintenance of automotive vehicles. It shall include "Shop Equipment" and ' Tools ", a those terms are commonly understood and as further enlarged within the meaning of Rule #1, Article V of the Code for the Petroleum Industry; and the sale of such to any and all automotive repair and maintenance e tablishments shall be deemed wholesaling of same. (7) The term "retailer" shall be construed to include any and all per ons, partnerships, and/or corporations regularly enaaged in the sale of automotive merchandise and/or service connected with the repair and maintenance of automotive vehicles, as defined or expanded in sections 5 and 6 of this Article, to the consuming public, and as enlarged or embraced in that Trade Practice Rule of this Co le entitled " Clas ification of Customers." (.) This definition of an automotive wholesaler, nor no part or section of it, shall be construed in such manner as to interfere with the free flow or exchange of merchandise from one whole ale r to another. ARTICLE IV-LABOR ( 1) On and after the effective date of this Code employers in the Wholesale Automotive Industry shall adopt a maximum work week for employe s which hall not be in excess of an average of 44 hour per we k for any twelve months' period and the maximum hour of work for any one week shall be 48 hours. From. this rule shall be except d traveling ales people and executive , provided that the latter in working beyond the stipulated 48 hour per week do not perform the work or take the place ordinarly performed or taken by employees subject to this code. n and after the effective date the minimum wage that hall be paid by any employer to any employee enaaaed in the whol aling of th products of the Wholesale Automotive Industry an l in labor op ration dire tly incident thereto hall be 35 p r hour. nd I rovided further that incidental labor and learners may be paid not le s than 30 per hour, but the total amount paid to such incidental labor and learner shall not exceed in any calendar month 10 % of the total wage I aid to all labor by u h employer. o per on under 16 years of ag may be employ cl in thi. in lu -try. HoweYer, any mployer in thi Indu try, located in a tion

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4 of the country where a lower minimum wage rate has been prescribed and accepted by the President in the Code of another industry for employees in the same crafts or classifications of labor employed in this Indu try shall have the right to employ such crafts or classifications of labor at such lower rate. Nothing in this Code shall prevent various district and l ocal groups of this industry, as provided in the administrative p lan under this Code, from setting higher rates of minimum wages or a lower number of maximum hours per week in their individual Codes of Fair Competition hould such be deeme l necessary to effectuate the policies of the National Industrial Recovery Act. (2) Employees in the Wholesale Automotive In lu try shall have the right to organize and bargain collectively through representative of their own choosing, and shall be free from any interference, restraint, or coercion, in the de ignation of such representative , or any self organization. (3) No employee in the ~ T holesale Automotive Industry, and no one seeking employment, shall be required as a condition of employment to join any organization, including a company union, or to refrain from joining a labor organization of his own choosing. (4) Employers and employees of labor in the ~olesale Automotive Industry shall comply with the maximum hours of labor, minimum rates of pay, and other working conditions approved or prescribed by the President of the United States. (5) The employers in the Wholesale Automotive Industry pro pose to continue the open-hop policies heretofore followed in which unusually satisfactory and harmonious relations with the employees have been maintained. ( 6) The maximum hours of any store or service operation in wholesale-automotive establi hments shall be sixty-six (66) hours in any one week between the hours of 7 A.M. and 6 P.M. , excluding Sundays and national holidays, as follows: New Years Day, Washington's Birthday, Decoration Day, July 4, Labor Day, Thanksgiv ing and Christmas, and/or such other days as are universally ob erved in any given di trict. Emergency call may be cared for in hours not specified in the preceding section, provided any and all emergency operations shall be reported immediately to the secretary or other designated agency of the local group of the locality in which such emergency operations are performed. What constitutes emergency service shall be determined by the local groups. ARTICLE vPRrcEs (1) There shall be established for the "\i Vholesale Automotive Inclu try a basic chart of standardized account hea lings suitable for and applicable to wholesale automotive establishments. This basic chart, when completed, shall become a part of thi Code and shall include cost of material, handling, hauling, machining, freight, selling, management, rent, overhead, in urance, and imputed interest on inve tments at 6 % . The following listing is intended to illustrate the nature of said ba ic chart of standardized account headings, whicl1r may be modified

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by th National hninistra ti v ommi ttee hereinafter provided for 111 u h mann r a to b t a hi ve the purpose for which ame i ta li h d: Gro ales inclu En~ hop labor. 0th r in ome. ale d ductions. o t of o-ood and labor sold. elling :q en es. ,~ar hou e and delivery expenses. Administrative expen e . Office expense . Machine shop expenses. General expenses. Other expenses, including interest on investments. The purpose of this ba ic chart of standardized account h ading i ~ t0 determine an a, erage, fair, and reasonable cost of doing bu s ine ~ i n the "7holesale Automotive Indu try. ( 2) Sale below uch ascertained average, fair, and reas onable co t hall be deemed unfair competition and in violation of thi C ode , wh e n same shall have been approved by the President of the United States. (3) Each person, partnership, and/or corporation in the Wholeale Automotive Industry shall make available to the Secretary o r other designated person of the district or local group in the area i n which he or it is located, a complete list of prices at which he intend to ell hi products. ARTICLE VI-TRADE PRACTICE RULES "Cpon approval by the President of the United States of this Coe.le o f Fair Competition, the following Trade Practice Rules shall apply t o automotive wholesalers as embraced in the definition of ame con mined in thi Code: (1) Misbranding.1arking or branding of products hould be done in every instance possible. Such marking, branding, o r failure t . o brand done for the pnrpo e or effect of misleading or deceiving purchasers or prospective purchasers with respect to the quantit~1 • quality ize, grade, or substance of the product purchas e l i s an unfnir method of competition. (2) Misr epre sentat ion.Selling or offering to sell any automotfre pro luct with intent to deceive purchasers or prospective purc ha er a to quantity, quality, s ize, grade, or substance of such pro lucts i an unfair method of competition. (3) Classificatio n of Oil'sfome1 . . -To prevent unfair metho l s of c ompetition, a fair and equitable cla ification of cu tom e r hall b e ma l e by ea h di tric t or local group and uch cla sification , hall b e . -tri tly a lhere l to by all operating in that group. The ab o v e la . . i fication of cu tamer hall include fleet owners, car distributor car l ealer. . independent r pair hop . , ma hine hops not qualifying a whole . al r , . e rvi tation , filling tati 11 battery and tire h o p . . le ctri al r pair hop governmental ag ncies, or subdivi ion the r of incln lin()" tat ounty, or Municipal, chain stores , mail-or ler

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G houses, accessory and supply s tores, and other form of r etail units as may appear. (4) Brande d Procluots.-We submit that a manufacturer of a branded product who, through ingenuity, expenditure of money, advertising, and other means, builds up public acceptance and p u b lic demand for his product should be entitled to a property right in the good wi ll attaching to that product, which should be shared by hi distributors and retailers; when this principl e is determine d upo n by government policy it shall b e deemed unfair trade practice for any outle t to deYiate from the price establis h ed by the manufacturer of suc h branded product. ( 5) Discri7nination B e t w e en T erri to ries.-The quoting of pri<.:es o r the selling of merchandise to c u stomers in one t erritory a t a price lovve r than i s offered to c ustomer s of imilar classification in ot h e r territories f o r the sa me quantity, grade, quality, or s tyle, due allow ances being made for di:ff erence in transportation costs, is an unfair method of competition, except that transportation costs m ay be qnalized a s between recognized jobbing points. (G) Dism 'imination in 01 edit T e rm , s.-Unwarranted granting of cre dit, u ually r e ults in large bad debt losses which are an economic waste. 1Such lo sses constitute a portion of operating expense and are r eflected in selling prices, thus placing an unfair burden on those c u sto m ers who pay bills when due. Discrimination in e r e lit terms between customers is an unfair method of competiti on and tends to prevent employe r s from maintaining the wage sca l e contemp lated in the Recovery Act. (7) Discrim,ination in P rioes as R e gard s Split Sliipmnits.-The accepta nce of orders for large quantities of merchandise b y vd1ole salers and then making smaller deliveries at the large quantity price i s an unfair n1.ethod of compet ition. It should be noted that where contracts v,1ith custome rs, which are matters of general knowl e dge, provide for rebates on quantity purchases, these are an e x ception to the above rule . ( 8) Spe ci al Close-Out Prioes.-,Vhe n a wholesaler deems it nec essary to liquidate a surplus ~ low-moving sto~k: of merchand_i se and wishe s to offer suc h merchandise for sa le at prices les s than his regular prices, h e shall file with the Secretary of the regional group in which he i s lo ca ted, a statement showing the quantity, s iz es, and styl es of merchandise so offered for sale and his reaso n for . u c h liquidation. On the first of each month, thereafter, he shall file with this Secretary a report showing current sa les of s u ch merchandise and the remaining quantities on hand to be liquidated. On uch sales, all invoices for merchandise so sold shall plainly display the following wording: "Speci a l Close-Out Prices ." Failure to obs erve this rule, or increasing such stock: during liquidation a t the s pe cial prices i s an unfair method of compet ition. It i s recomm ended with r eference to the above rule that any wholesaler findin g him.self in this position should fir s t offer the surplus of merchandise to the manufacturer thereof, and, failing disposal of suc h merchandise by this method, should offer same to his competitors in the regional group. (9) Oonsignm e nts.-We believe that the consigning of ~nerchan di. _ e by wholesalers i s to be deprecated and should be avoided. If a wholesaler should offer merchandise on con ignm.ent to a pur-

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7 r handi e the pri , and onditions und r and the nam . of th n ign e hall b re l rt d t th ccr tar of th Reo i nal Grour, in ord r that the comp tit r in the grour may hav full ognizan of the on ign m nt that no undu a lvantaae be derived from tl e eff ct of this on ignm nt. iolation f th above is unfair competition . (1 ) omm e rcial brib ry.-Directly or indirectly to g ive or permit t b biv n, or off r to a i ve money or anythina of value, to a~ nt , employe or repr entatives of cu s tomers or pro pective cu tomers or to aaent , emp lo yee , or repre entatives of competito r ' cn ~ tomer or pro pe tive c u stom r , without the knowledge of their 1111 loyer or principal , as an inducement to influ e nce their em ploy r or principals to purcha s e or contract to purch ase from the proffer of uch gift or offe r , or to influence s uch emp loyer or prin cipal from contractino to deal with competitors i an unfair method f competit ion. The practice of givina or permitting to be aiven, or holding one s If as givina, s o-call ed ' Free D ea l " and "free" mechanical ervice in connec tion with the ale of merchandise or mechanica l ervice by whole ale automotive e tablishments i unsound practice for the r a o n that the co t of such o-called " Free D ea l " and " free ' me hani ca l ervice generally mu t be and i s included in the price c:hart"' ed for m e r chandise or mechanical service in connection with which the o-callecl " Free Deal " and " free " me chanica l se rvic e i a ll eged to b e given. (11) P rice sta b ilization.-The principle of price stabilization hould apply to whole s ale distribution. Just a s the manufacturer hould have the right to name and enforce his res ale schedule, which becau e of c ompetitive influen ces will generally r epresent rea onable price ba ed on the cost of labor and material , wholesalers houlcl be permitted, in their re s pective zone or area, to s tabilize price on nier chandise and service, such stabilization being based on the princ iple that merchandi e and/or service should not be old below a fair, rea , onable, and average co t, as provided in Section 2, Article , . vVhen this has been done, violation of the ruling is unfair competition. ( h,) Un thical pra tic es .-Unethical or off en i ve practices not ot h rwi e pecified in this Code may and shall be estopped by deci . _ i n of a majority of the whole alers in the regional group of the re ion in which the offense occur : Provid d, That appeal from the t l e i ion may be made to the National Administrative Committee . ( 13) 0 oercion.-The practice of c oercion in the wholesale distribution of automotive I roducts in any form what o eve r or throuah th in trumentality of any device . whatsoever i s unfair competition nnl l it ob tructs the full fl.ow of inter tate comm r ce, assurance of "hi h w und rstand to be a puq ose of the Recov ery Act. (14) Bulk e lling.-Bulk ale . in the ,v-hole ale Automotive In
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8 accompli h the application of fair competitive practices a contained herein. (15) Unfafr ~ldve1tising and Selling Practi'c s.-Any and all practices in advertising and elling merchandi e an l/or ervice in the "\Vholesale Automotive Industry which may have th capacity or tendency to undermine publ ic confidence in adverti ing announcements or other lling rep re entations generally, or the effect of injuring unfairly the sales or goodwill of a competitive produ t or rvice are unfair and against the public interest. Specifically, practices coming withjn the scope of such unfair practices are Mislead ing Adverti ing, Deceptive Statements, Unfair Competitive Claims, Disparagement of Competitors, Underselling Claims, and "Bait' Offer . ARTICLE YII-ORGANIZATION A .. ~D PROCEDURE (1) The Admini. trative Committee for the operation of the "\Vholesale Automotive Indu try under this Code will consist of five (5) repre entatives, including the President of the Motor and Equipment \Vholesalers Association; five ( 5) representatives, including the Chairman of it "\Vhole aler's Division of the National tandard Parts Association; three (3) member , including the Pres i lent of the National Automotive Parts Association; three (3) members, including the President of the Automotive Engine Rebuil lers' As sociation; three (3) members , including the Chairman of its Distributor's Division of the Automotive Electric Association; and, in addition, the Commissioner of the Automotive vVholesalers Re arch Institute. The committee hall select a chairman who shall have and exercise such authority as may be delegated to him by the Committee which hall have charge of all communications and conferences between the \Vholesale Automotive Industry and the President of the United States, or his agents, concerning the approval or amendment of thi Code or any of the provisions or rule relative thereto. The National Administrative Committee shall have the authority to increase it number by such additions a may be neede l from time to time, provided that the ratio of representation as here . tab Ii hed hall remain constant. Each as ociation shall have authority to fill and shall fill -vacan c ie ~ occurring in it division of the committee. (2) The National Administrative Committee shall be the general administrative, planning, and coordinr,ting committee for the v\~holesal e Automotive Industry in relation to any and all matters conne -tecl with the National Indu trial Recovery Act. It shall have the authority to cau e to exi t such di trict or area organization as may he nece sary for the effici nt administration of this Code of Fair Competition when same shall have been approved by the Pre iclent of the United States. In line with the preceding there shall be established throughout the United State 12 Districts, coinciding with the Federal Re erve District , designated as Nira Whole ale Automotive District , ,Yhich may be modified, expanded as to number, or otherwise change d a u1 the judgment of the committee may be necessary for t he efficient admini tration of this code .

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9 In a h of ail li tri t hall b tabli hed u h local grour a may be found ne e ary. The ational Admini trative Committee shall provide such plan of oro-anization and pro dure for the di trict and local group a in it ju lo-m nt may be n ce ary for the efficient functioning of said O'l' np . (3) The committee shall be specifically clothed with authority to requ t any an l all inf rmation r lative to th carryin()" out of the pr i ion of th c de fr m any person, firm, and/ or corporation ubj ct to this o le. ( 4) The ommitt e may form or cau e to be formed, anv an l all committ es whi h it deems advisable to eff ctuate cooperation in the a hnini tration of this code, the National Industrial Recovery Act, and the rules and regulations thereunder. Each as ociation shall have the authority to fill and shall fill any and all vacancies occurring among it memb r hip on any and all committees. ( ) Member of all committees hall erve until June 15, 1935, when their terms shall expire, unles the emergency under which the ational Industrial Recovery Act has b ee n enacted shall have been declared by the Pre ident of the United States to have ceased to exist. ( 6) The ational Administrative Committee shall determine from time to time the number of its memb rs requisite to a quorum. It hall al o d termine the number of members requisite to a quorum of any and all committees created under its authority. It shall adopt rules of procedure for such committees and for the National Administrative Committee. (7) Each committee hall fix its own meeting dates and places of meetings. Members of committees may delegate alternates to act for them at the meetings of the committee . (8) The National Administrative Committee shall have authority to select from its membership a National Administrative Executive ommittee con i tinoof five ( 5) per ons, one of whom shall be hairman of the ational Administrative Committee, who shall also be Chairman of the National Administrative Executive Com mittee. The National Administrative Executive Committee hall have all the authority and powers of the National Administrative Committee in the interim between meetings of the N ati.ona l Admini trative Committee. (9) The National Administrative Committee s h all have the authority to make, and shall make, such asses ments as m .ay b e nece ssary to cover the actual expense of the administration of this ode. All u h a e sment hall be on a fair and equitable basi , considering the nature and extent of operations carried on in the Wholesale Automotive In lu. try by tho e subject to assessments, and asses ments shall be pail promptly by those a essed when lue. n off nding party hall be ubject to an asse ment as hall be impo l by the trial bqdy in an amount not to exceed the provi ion of th Indu trial Reco ery Act as appr ved by Act of Congress Jun 13, 1933. All uch as e ment hall be di tribute l a directed bv the National dmini trative ommittee for the purpo e of a. i t'ing in 1 -fra inothe actual expen es of the administration of thi 1 .

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10 ARTICLE VIII-A:;\IEND:;\IE TS This Code of Fair Competition may be amended as follows: (1) The President of the United States may by virtue of authority granted to him, on occasion, cancel or modify any or ler, approYal, licen se or regulation is ued, ma le, or approved thereunder a provided in Section 10-B of the ational Indu trial Recovery Act. (2) It may be amended by a two-thir ls vote of the entire membership of the National Administrative Committee, and the amen 1ment shall take effect when approved by the President, provi lecl that reasonable public notice of the propo el amendment hall have been given for ten days to the "'Vhole ale Automotive Industry, and provided that any of its provi ions may be cancel cl or modified and any approved rule issued thereund r shall oe ineffective if suc h be neces ary to conform to any action by the Pre ident in Section 10-B of the National Industrial Recovery Act. ARTICLE IX-GENER.AL To ecure the adoption of this Code Competition, and to give full effect to it provi ions when same shall have been approved by the President of the United States, the following shall apply: (1) There shall be formulated a statement, described as Exhibit "A", howing the name of the organizations cooperating in the pre entation of this Co le to the proper governmental authorities, the_ purpose for which they exi t, the organization plan through wluch they operate, and the extent of their operations in the Whole ale Automotive Industry. The specific purpose of this statement shall be to show that said organization are representative of the Wholesal Automotive Industry and they are pecifically em powered to assemble any and all data for the accompli hment of this purpose. (2) At the earliest possible time, the variou group established in the severa l di tricts shall file a statem nt with the J ational Administrative Committee hereinbefore provided for, giving the following information : (a) Copy of Constitution and By-laws. (b) Names of all committees having to do with any and all provisions of this Code and its admini tration in the several dj tricts. ( c) Schedule of maximum hours of labor applicable to employees of wholesale automotive estab li hments in the districts. ( cl) Schedule of wage rates applying to employees in wholesale automotive establishments in the districts. ( e) Procedure developed by the district or local group for the administration and the enforcement of this Code, an l of any and all rnle and regulation pertaining thereto, as prescribed by the President of the United States. (f) Any and all information bearing upon the application of thi Code which may from time to time be r eq uested by the National Admini tration Committee. ( 3) In the event that any district group fails to ubmit within a reasonable time information as required in Section 2 above, the Na-

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