v/ Approved Code No. 201 — Supplement No. 6 Registry No. 409—06 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHOLESALE STATIONERY TRADE (A Division of the Wholesaling or Distributing Trade) AS APPROVED ON APRIL 21, 1934 WE DO OUR PART UNiV. OF FL Lll. DOCUMI!iI§-Ei!!L .. DD U.S. DEPOSITORY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale, by the Superintendent of Documents. Washington, D.C. Price 5 cents 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, NY. : Thamber of Commerce Building. Charleston. S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. 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Approved Code No. 201 — Supplement No. 6 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHOLESALE STATIONERY TRADE As Approved on April 21, 1934 ORDER Supplementary Code of Fair Competition for the Wholesale Stationery Trade a division of the wholesaling or distributing trade An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Supple- mental Code of Fair Competition for the Wholesale Stationery Trade to the Code of Fair Competition for the Wholesaling or Dis- tributing Trade, and hearings having been duly held thereon and the annexed report on said Supplemental Code, containing findings with respect thereto, having been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the Presi- dent, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise ; do hereby incorporate by reference said annexed report and do find that said Supplemental Code complies in all re- spects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby approved. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recomended: H. O. King, Division Administrator. Washington, D.C., April 21, 193^ 54394° 482-139 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report of the Hearing on the Supplemental Code of Fair Competition of the Wholesale Stationery Trade, conducted in Room 2062-66 Department of Commerce Building, on March 10, 1934. The Code, which is attached, was presented by a duly qualified and authorized representative of the Trade, complying with the statutory requirements, said to represent 60 per cent in number and about 73 per cent in volume of sales of the Trade which could be included in this Code. THE TRADE According to statistics furnished by members of the Wholesale Stationery Trade, there are approximately 250 establishments with aggregate annual sales of $30,000,000. The Trade employs about 7,500 persons. PROVISIONS OF THE CODE Since this Code is supplemental to the Code of Fair Competition for the Wholesaling or Distributing Trade, it contains no labor provisions. The provisions containing supplemental definitions are considered inclusive and accurate. The Supplement to the Administrative provisions of the General Code establishes a Divisional Code Authority which is fairly and adequately representative of all the different elements in the Trade. The Trade practices proposed are not in any way objectionable. The provision regarding quantity discounts is designed to meet a problem which has recently been distressing to the Trade. The pro- vision regarding mail order shipments is adopted as a protective measure for salesmen. FINDINGS The Deputy Administrator in his final report to me on said Sup- plemental Code having found as herein set forth and on the basis of all the proceedings in this matter; I find that (a) Said Supplemental Code is designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof, and will provide for the general welfare by promoting the organization of trade for the purpose of cooperative action among trade groups, by inducing and maintaining united action of labor and manage- (2) ment under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible use of the present productive capacity of industries, by avoiding undue restriction of production (except as may be tem- porarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (bj Said Trade normally employs not more than 50,000 employees and it is not classified by me as a major industry. (c) The Supplemental Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 and Subsection (b) of Section 10 thereof; and that the applicant association is a trade association truly representative of" the aforesaid Trade ; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elim- inate or oppress small enterprises and will not operate to discrimi- nate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to the approval of this Supplemental Code. (g) This Trade is duly representative and therefore, as provided for in the Code of Fair Competition for the Wholesaling or Dis- tributing Trade (footnote to Section 2 (b) of Article VII), and in accordance therewith, is entitled to become a Division of said Code and be permitted a Supplemental Code thereto. For these reasons, the Supplemental Code has been approved. Respectfully, Hugh S. Johnson, Administrator. April 21, 1934 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WHOLESALE STATIONERY TRADE A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE Article I — Purposes To further effectuate the policies of Title I of the National Indus- trial Recovery Act the following provisions are established as a Supplemental Code of Fair Competition for the Wholesale Station- ery Trade to the Code of Fair Competition for the Wholesaling or Distributing Trade, as provided by Article VI, Section 1 (c) thereof, and shall be considered as a part of and in connection with such Wholesaling or Distributing Code, and both such Codes shall be binding upon every member of such Wholesale Stationery Trade. Article II — Definitions supplementing article ii of general CODE Wholesale Stationer or Distributor. — The terms " wholesale sta- tioner " or " distributor ", as used herein, shall mean any individual, partnership, association, corporation, or other firm or definitely or- ganized division thereof, organized for the specifie purpose of ren- dering a general distribution service which buys and maintains at his or its place of business a stock of lines of merchandise cus- tomarily carried by those engaged in the Wholesale Stationery Trade and which through salesmen, advertising, catalogs, and/or sales pro- motion devices, sells primarily to retailers, and/or incidentally to institutional, commercial, and/or industrial users, but not in signifi- cant amounts to ultimate consumers. The Trade. — The term "Trade" as used herein shall mean the business in which wholesalers or distributors of stationery are en- gaged. Divisional Code Authority. — The term " Divisional Code Author- ity ", as used herein, shall mean the Divisional Code Authority for the Wholesale Stationery Trade, a division of the Wholesaling or Distributing Trade. General Code. — The term " General Code ", as used herein, shall mean the Code of Fair Competition for the Wholesaling or Distrib- uting Trade. Member of the Trade. — The term " member of the Trade ", as used herein, shall be defined to mean any Wholesaler or Distributor engaged in the Trade. Article III — Administration SUPPLEMENTING ARTICLE VI, SECTION 2 (E) AND SECTION 5 OF THE GENERAL CODE 1. (a) The Divisional Code Authority shall consist of seven (7) members, from among the trade, or representatives thereof, four (4) (4) to be chosen by the Wholesale Division of the Board of Control of the Wholesale Stationers' Association, two (2) to be elected by the Interstate Association of Stationery, Toy, and Novelty Jobbers, Inc., at any regular meeting of that Association, and one (1) to be chosen by those members of the Trade who are members of neither of these Associations. This last member shall be chosen according to a plan to be prepared by the Wholesale Stationers' Association and approved by the Administrator. In case no practicable plan of selecting this member can be worked out he may be appointed by the Administrator. (b) Only those members of the Trade (regardless of membership in the Associations named in Article III, Section 1 (a) above) shall be allowed to vote in the election of members of the Divisional Code Authority who sign or shall have signed a statement of assent and compliance to this Supplemental Code and the General Code. (c) The terms of office of members of the Divisional Code Au- thority and the method of electing their successors whether for full new terms or for unexpired terms shall be established in the by-laws of the Divisional Code Authority, subject to the approval of the Administrator. 2. The Divisional Code Authority shall appoint one of its mem- bers to a committee, which, if and when the Divisional Code Au- thority of the Commercial Stationery and Office Outfitting Trade and the Divisional Code Authority of the School Supplies Trade shall appoint one member each thereto, shall constitute a coordinat- ing committee of the three Trades. If and when the Divisional Code Authority for the Wholesale Stationery Trade shall appoint its member to the coordinating committee, the Divisional Code Au- thority shall delegate to its member such of its general powers as may be necessary for him, in collaboration with the other two mem- bers of the coordinating committee, to coordinate the administration of the Supplemental Codes for the three Trades, so as to assure that such administration will be fair and equitable to each. Nothing herein shall be considered to relieve the Divisional Code Authority of any of its duties and responsibilities. The Divisional Code Au- thority shall abide by any judgment of the coordinating committee requiring that committee to report to the Administrator any alleged violation of the provisions of this Supplemental Code which requires the cooperation of the three Trades in its adjustment. 3. The Divisional Code Authority shall have the following duties and powers, in addition to those prescribed in the General Code. (a) To appoint a Trade Practice Committee, which shall meet with the Trade Practice Committees appointed under such other Codes as may be related to the Trade, except other Supplemental Codes to the General Code, for the purpose of formulating fair trade practices to govern the relationships between production and distribution employers under this Supplemental Code and under such others, to the end that such fair trade practices may be proposed to the Administrator as an amendment to this Supplemental Code and such other Codes. (b) To appoint a Regional Committee in each of such regions as the Divisional Code Authority may establish, to assist the Divisional Code Authority in administering this Supplemental Code ; provided, however, that nothing herein shall relieve the Divisional Code Authority of its responsibilities as such. (c) To organize, elect officers, hire employees, and perform such other acts as may be necessary for the proper administration of this Supplemental Code. 4. Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authority partners for any pur- pose nor shall any members of the Divisional Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of the Divisional Code Authority. Nor shall any member of the Divisional Code Authority, exercising reasonable dili- gence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act, under this Supplemental Code, except for his own wilful misfeasance or nonfeasance. 5. If the Administrator shall determine that any action of the Divisional Code Authority or any agency thereof, may be unfair or unjust or contrary to the public interest, the Administrator may re- quire that such action be suspended to afford an opportunity for investigation of the merits of such action and for further consider- ation by such Divisional Code Authority or agency, pending final action, which shall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with such action in its original or modified form. Article IV — Trade Practices SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 1. (a) Within 30 days after they are notified to do so by the Divisional Code Authority members of the Trade must file with it schedules of their sales prices on such of the different items which they sell as the Divisional Code Authority may from time to time designate, including all terms, conditions, or allowances affecting the price at which any item is offered for sale to their customers. These schedules may be changed by filing with the Divisional Code Authority notice of such changes. (b) It shall be an unfair trade practice for a member of the Trade to sell or offer for sale goods at prices lower than those which he then has on file. (c) It shall be an unfair trade practice for any member of the Trade to file a price as outlined in paragraph (a) or to sell or offer to sell any item for a price lower than the net invoice, price plus incoming transportation costs to his warehouse, provided that (1) A member of the Trade may sell at a price less than the minimum provided above in order to meet the price of a competitor whose price does not violate this section. Such sales shall be reported to the Divisional Code Authority within three days after they are made. (2) Bona fide sales for the purpose of closing out discontinued, obsolete, or distress merchandise may be made at such prices and upon such terms and conditions as may be necessary to effect their sale. Full details of such sales including the amount of such mer- chandise on hand and the date of its purchase must be reported to the Divisional Code Authority before the date of such sale. (3) Nothing herein shall apply to sales made directly or indirectly to a Federal or State government or any political sub-division thereof. (d) All filed prices shall be matters of public record to all inter- ested parties who pay to the Divisional Code Authority the cost of furnishing the information desired. (e) When manufacturers of products distributed by this Trade through action of their respective code authorities shall have estab- lished standard units as to grades, qualities, size, quantities, and counts in which standard unit fabricated goods shall be offered for sale, and such units shall have been approved by the Administrator, price schedules filed by members of the Trade shall be in terms of the standard units so established ; but without respect to the manu- facturers' designated prices. (f ) If at any time the Administrator after a hearing shall find that this open price arrangement is being used for the purpose of price fixing he may in discretion suspend its operation or declare it permanently inoperative. 2. The following shall be the maximum terms of credit to cus- tomers: 2%, 10 days, E. O. M., 60 days net. 3. The following uniform dating on seasonal goods shall prevail under this Supplemental Code February 1st for Valentines, April 1st for Easter goods, September 1st for school supplies, December 1st for holiday goods. Subject to the approval of the Administrator the Divisional Code Authority shall have power to modify these uniform datings or to establish uniform datings on additional items or lines. The maximum cash discount terms which shall apply to such seasonal or dating orders shall be 2%, 10 days, 30 days net. 4. Offering or giving special cash or trade discounts on mail orders better than given on orders taken by salesmen or through regular channels shall constitute a violation of this Supplemental Code. 5. Quantity discounts shall be computed on the basis of the quan- tities shipped and/or billed to a single buyer. 6. The offering or giving of prizes, premiums, or gifts in con- nection with the sale of products, or as an inducement thereto, by, any scheme which involves lottery, misrepresentation, or fraud will constitute a violation of this Supplemental Code, provided that nothing herein shall prevent the general distribution of prizes, premiums, or gifts commonly used for advertising except so far as they are actually given in a scheme which involves lottery, misrepre- sentation, or fraud. Article V — Price Increases Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual cost should be delayed. But when made such increases should, so far 8 as possible, be limited to actual additional increases in the sellers' costs. Article VI — Effective Date This Supplemental Code shall become effective on the 10th day after its approval by the Administrator. Approved Code No. 201 — Supplement No. 6. Registry No. 409^06. O UNIVERSITY OF FLORIDA 3 1262 08850 5382