Approved Code No. 201 — Supplement No. 4 Registry No. 1606—04 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE BEAUTY AND BARBER EQUIPMENT AND SUPPLIES TRADE (A Division of the Wholesaling or Distributing Trade) AS APPROVED ON APRIL 4, 1934 WE DO OUR PART UNIV. OF- Ft D8. pqplWEHTS PEP-L uJ: U.S. DEPO8!T0*y u »>■ IIIIHI 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, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. 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Approved Code No. 201 — Supplement No. 4 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE BEAUTY AND BARBER EQUIPMENT AND SUPPLIES TRADE As Approved on April 4, 1934 ORDER Supplementary Code of Fair Competition for the Beauty and Barber Equipment and Supplies 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 Supplemen- tal Code of Fair Competition for the Beauty and Barber Equipment and Supplies Trade, a Division of the Wholesaling or Distributing 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 respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby ap- proved ; provided, however, that the provisions of Article V, Section 1 (a), insofar as they prescribe a waiting period between the filing with the Code Authority (i.e. actual receipt by the Code Authority) and the effective date of revised price lists or revised terms and con- ditions of sale be and they are hereby stayed pending my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : W. A. Harriman, Acting Division Administrator. Washington, D.C., April 4, 1934. 51242° 482-17 34 (I) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report of the Hearing on the Code of Fair Competi- tion for the Wholesale Beauty and Barber Equipment and Supplies Trade, conducted in the Jefferson Room of the Mayflower Hotel," on December 11, 1933. The Code which is attached was presented by duly qualified and authorized representatives of the Trade, comply- ing with the statutory requirements, said to represent 75 per cent in number and approximately 85 per cent in volume of the Trade which could be included in this Code. THE TRADE According to statistics furnished by the members of the Whole- sale Beauty and Barber Equipment and Supplies Trade there are approximately 175 establishments with aggregate annual sales of $31,600,000. The Trade employs about 6,600 persons. PROVISIONS OF THE CODE Since this Code is supplemental to the General Code of Fair Com- petition for the Wholesaling or Distributing Trade, it contains no labor provisions. The provisions containing supplemental definitions are inclusive and accurate. The supplement to the administrative provisions establishes a Di- visional Code Authority for the Trade which is representative of the different elements in the Trade. According to the statistics sub- mitted by the Trade, the Beauty and Barber Supply Institute, In- corporated contains among its members or is authorized to represent in the administration of the Code, 75 per cent of the number of con- cerns in the Trade. Its members sell approximately 85 per cent of the total sales volume. The selection of five members of the Code Authority by the Beauty and Barber Supply Institute and one rep- resentative by non-members of the Institute is representative of the Trade. The Trade practices proposed in the supplements to Articles VII and VIII are not in any respect objectionable. The provisions gov- erning the distribution of professional packages is designed to rem- edy an abuse of long standing in the Trade. The provisions concern- ing the sale of equipment on the installment basis is adopted as a means to insure uniform practice in these activities. FINDINGS The Deputy Administrator in his final report to me on said Code having found as herein set forth and on the basis of all the pro- ceedings in this matter; (2) I find that : (a) Said Code is well designed to promote the policies and pur- poses of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tends to diminish the amount thereof and will pro- vide for the general welfare by promoting the organization of in- dustry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and manage- ment under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest Eossible utilization of the present productive capacity of industries, y 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 re- ducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Trade normally employs not more than 50,000 employees; and is not classified by me as a major industry. (c) The Code as approved complies in all respects with the perti- nent provisions of said Title of said Act, including without limita- tion Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant group is a trade group truly representative of the aforesaid Trade; and that said group imposes no inequitable restrictions on admission to membership therein. (d) The Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Code. For these reasons this Supplemental Code has been approved. Respectfully, Hugh S. Johnson. April 4, 1934. SUPPLEMENTARY CODE OF FAIE COMPETITION FOR THE BEAUTY AND BARBER EQUIPMENT AND SUP- PLIES 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 Beauty and Barber Equipment and Supplies Trade to the Code of Fair Competition for the Wholesaling or Distributing Trade, as provided by Article VI, Section 1 (c) thereof, and such Supplemental Code shall be considered as a part of and in connection with said Code for the Wholesaling or Distributing Trade; and both Codes shall be binding upon every member of such Wholesale Beauty and Bar- ber Equipment and Supplies Trade. Article II — Definitions SUPPLEMENTING ARTICLE II OF THE GENERAL CODE Section 1. The term " Trade " as used herein is denned as the distribution to beauty and barber shops and beauty and barber schools of equipment, furniture, supplies and material commonly used in the outfitting of the same. Section 2. The term "member of the Trade" as used herein in- cludes, but without limitation, individuals, partnerships, associa- tions, corporations, or other firms engaged in the Trade, either as an employer or in his, its or their own behalf. Section 3. The term " the Codes " as used herein shall mean and include the Code of Fair Competition for the Wholesaling or Dis- tributing Trade and this Supplemental Code of Fair Competition for the Beauty and Barber Equipment and Supplies Trade. Section 4. The term " Divisional Code Authority " as used herein shall mean the Divisional Code Authority for the Wholesale Beauty and Barber Equipment and Supplies Trade, a division of the Whole- saling or Distributing Trade. Section 5. The term " Regional Districts " as used herein is de- fined to mean the Divisions of the Advisory Committee of the Beauty and Barber Supply Institute, Incorporated, heretofore established by such Institute. Section 6. The term " General Code ", as used herein, shall be defined to mean the Code of Fair Competition for the Wholesaling or Distributing Trade. Section 7. The term " consignment ", as used herein, shall mean leaving merchandise with a customer for an indefinite period, the (4) title to remain in the member of the Trade until such time as the customer shall sell the merchandise. Article III — Administration SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE Section 1. The Divisional Code Authority shall be composed of five (5) members of the Trade or representatives thereof; four (4) to be elected by the Executive Committee of the. Beauty and Barber Supply Institute, Incorporated, and ratified by a majority vote of such Institute, and one (1) who shall be elected by non-members of such Institute in accordance with a fair method approved by the Administrator. Section 2. The successor to any member of the Divisional Code Authority shall be nominated and elected in accordance with a plan devised by the Divisional Code Authority subject to the approval of the Administrator. Section 3. The Divisional Code Authority shall have the follow- ing duties and powers, in addition to those prescribed in the General Code; all such duties and powers to be subject to review by the Administrator : (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 Trade Practice Com- mittees appointed under 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 Code and under such others, to the end that such fair trade practices may be proposed to the Administrator as an amendment to this Code and such other Codes. (b) To appoint a Regional Committee in each Regional District to assist the Divisional Code Authority in administering the 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 the Code. Section 4. Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authority partners for any purpose nor shall any member or members of the Divisional Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of the Divisional Code Authority ; nor shall any member of the Divisional Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act, under this Supplemental Code, except for his own wilful misfeasance or nonfeasance. Section 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 require that such action be suspended to afford an opportunity for investigation of the merits of such action and for further considera- tion by such Divisional Code Authority or agency, pending final action, which final action shall not be effective unless the Adminis- trator 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 Section 1. Merchandise Used for Non-Profit Purposes. — No mem- ber of the Trade shall break up, and sell separately, the items in a package of merchandise prepared and sold by the manufacturer primarily for advertising or educational purposes without profit as and for a unit ; a " unit " is hereby defined as a package containing the same kind of merchandise ; the term " unit ", however, shall not include packages containing items used in a single continuous treat- ment, together with text books or other forms of instructions or directions for proper use. Section 2. Professional Packages. — No member of the Trade shall repack or transfer any article from a " professional package " or other original container into another container in violation of any contract with the owner of the formula or trade mark, or with the original manufacturer, and offer such repacked product in competition with the product, as originally packed, of such owner or manufacturer; a " professional package " is defined as a package containing supplies or materials which the manufacturer has provided by contract for resale to shops as originally packed and for shop use only. Section 3. Limitation on Sale of Professional Packages. — No member of the Trade shall sell professional packages to other than beauty and barber shops and/or schools, and other commercial users. Section 4. Inducements to Purchasers. — No member of the Trade shall give or offer to give any free merchandise or service equivalent to the same (except items or services used for advertising or educa- tional purposes and given to the trade at large) either alone or with other goods in the form of " combination deals " or otherwise, as an inducement to a purchaser or prospective purchaser or agent or employee of the same to buy other or additional goods. Section 5. Sales Policy on Violation of Educational Goods Agree- ment. — No member of the Trade shall service, deliver to or supply a school with the product of a manufacturer if said school shall have accepted the product from such manufacturer as free merchandise to be used for educational and instructional purposes and shall have, subsequent to the acceptance of such product, violated the sales policy or agreement under which the said freely furnished product is intended to be used ; provided, however, that when the said school has thereafter paid the wholesale price of such misused product, as of the date of acceptance, to the manufacturer, this section shall have no application to said school. Article V — Permissive Trade Practices SUPPLEMENTING ARTICLE VIII OF THE GENERAL CODE As expressly permitted in Article VIII, Section 2, of the General Code, the following practices constitute additional fair methods of competition for members of the Wholesale Beauty and Barber Equipment and Supplies Trade, and violations of the same are prohibited. Section 1. Price Lists and Sales Terms: (a) Price Lists. — Members of the Trade servicing beauty and barber shops shall file individual schedules with the Divisional Code Authority setting forth the terms, conditions, discounts, and prices upon which they each propose to sell. It shall then be an unfair trade practice for any member who has filed such a schedule to enter into selling transactions involving terms, conditions, discounts, or prices other than those set forth in such schedule. Individual schedules are subject to change by filing a new schedule, which shall be effective five (5) days after filing. All schedules in effect at any particular time shall be matters of public record and shall be made available to the members of the Trade by the Divisional Code Authority and also to any interested party upon request and pay- ment of costs of publishing the same; provided, however, that damaged or deteriorated articles may be sold by a member of the Trade upon terms, conditions, discounts and prices different from those contained in his published schedule when such member has complied with the provisions of Article V, Section 1 (h) of this Supplemental Code. 1 (b) Content of Invoices. — All invoices issued by members of the Trade shall embody provisions of this Supplemental Code regarding the terms and conditions of sale including prices, payment dates, provisions governing delinquency, descriptions, discounts, and dis- count periods, packing and delivery charges, delivery date, cancella- tions, returns or exchanges of trade products. (c) Credit Sales. — The cash discount on all invoices paid on or before the tenth of the month following the date of purchase shall not exceed 2% of the invoice price. Invoices paid after the tenth day of the month following the date of purchase shall not be subject to discount. All bills not paid within three months from date of delivery shall be considered past due and no further credit shall be extended by any member of the Trade until payment of such past-due account has been made, unless the member of the Trade notifies the Code Au- thority in writing that further credit is being extended and gives the reasons for such extension of credit. (d) Cash Sales. — On cash sales of furniture or equipment pur- chasers may be given a discount not to exceed 5% from the estab- lished selling price less the amount of any allowances for trade-ins. (e) Allowance on Trade-ins. — The Divisional Code Authority shall study and analyze the subject of establishing, on a regional basis, maximum trade-in allowances for used furniture and/or equip- ment and questions relating to the subject of the enforcement of the same, and shall recommend a plan to the Administrator for that pur- Eose. The Administrator may, after such notice and/or hearing as e may prescribe, approve said plan which shall thereupon become a part of the Code. (f ) Policy on Transportation Charges. — All supplies, not includ- ing equipment, shall be sold f .o.b. seller's place of business, whether 1 See paragraph 2 of order approving this Code. 8 delivered by freight, express, truck, mail, or parcel post, unless the Divisional Code Authority shall, subject to review by the Adminis- trator, permit delivery equalization with the nearest competitor sell- ing the same items. (g) Sales Below Cost. — No merchandise shall be sold below its net invoice cost plus transportation costs to seller's warehouse plus an allowance for actual wages involved in the sale and delivery of the merchandise by the wholesaler, such allowance to be determined by the Divisional Code Authority subject to the approval of the Administrator. (h) Sales of Damaged or Deteriorated Articles. — With respect to damaged or deteriorated articles, members may sell the same to shops regardless of cost, provided: (1) That the manufacturer thereof shall have refused or neglected to repurchase the same within ten days after the time that they are tendered to him by a member of the Trade at his purchase price less a reasonable charge allowed the manufacturer for reconditioning the same. (2) That such article or articles shall have been advertised as unsalable through the medium of the " association trade journal " of the Beauty and Barber Supply Institute. (i) Sales on Consignment. — The sale of trade articles on a " con- signment " shall constitute an unfair method of competition : pro- vided, however, that if a member of the Trade shall be unable to dispose of his product under the provisions of Article V, Section 1 (h), of this Supplemental Code then such member may sell on " consignment " subject to regulation by the Divisional Code Authority. (j) Installment Sales. — In the case of installment sales, the Di- visional Code Authority may make recommendations to the Admin- istrator relative to minimum down payments on any commodity of the Trade in any regional district. When the Administrator shall approve any such recommendation, it shall be an unfair trade prac- tice for any member of the Trade within such regional district to sell such commodity on an installment plan without requiring such minimum down payment. Article VI — Buy From N.R.A. Manufacturers To effectuate the policy of Title I of the National Industrial Recov- ery Act, the members of the Trade hereby agree, by and with the advice and consent of the Administrator, and to the extent to which it may be lawful, to confine their dealings to persons, firms, and cor- porations giving their unqualified support to the President and the National Recovery Administration during the period of the national emergency. Article VII — Effective Date This Supplemental Code shall become effective on the tenth day after approval. Approved Code No. 201 — Supplement No. 4. Registry No. 1G06-04. o UNIVERSITY OF FLORIDA 3 1262 08583 0791