Approved Code No. 201 — Supplement No. 20 
 
 Registry No. 1308—06 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 SUPPLEMENTARY 
 CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 ELECTRICAL WHOLESALE 
 TRADE 
 
 (A Division of the Wholesaling or Distributing Trade) 
 
 AS APPROVED ON AUGUST 13, 1934 
 
 WB DO OUR PART 
 
 UNtV. O^ FL Lit. 
 
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 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 
 F rinling Olfice, Washington, D.C., and by district offices of the Bureau of Foreign 
 and Domestic Commerce. 
 
 EISTBICT OFFICES OF THE DEPARTMENT OF COMMERCE 
 
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Approved Code No. 201 — Supplement No. 20 
 SUPPLEMENTARY CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 ELECTRICAL WHOLESALE TRADE 
 
 As Approved on August 13, 1934 
 
 ORDER 
 
 Supplementary Code of Fair Competition for the Electrical 
 Wholesale Trade 
 
 a division of the avholesaling 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 Electrical Wholesale Trade 
 to the Code of Fair Competition for the Wholesaling or Distributing 
 Trade, and hearings having been duly held thereon, and the an- 
 nexed report on said Supplen:^ntal 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 an- 
 nexed 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 
 approved. 
 
 Hugh S. Johnson, 
 Administrator for Industrial Recovery. 
 
 Approval recommended : 
 Robert L. Houston, 
 
 Division Administrator, 
 
 Washington, D.C, 
 
 August 13, 193 1^. 
 
 80259° 1044-73 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 for the Electrical Wholesale Trade, a division 
 of the Wholesaling or Distributing Trade, held in the Sun Parlor of 
 the Washington Hotel, on January 10, 1934. The Supplemental 
 Code, which is attached, was presented by duly qualified and author- 
 ized representatives of the Trade, complying with the statutory 
 requirements. 
 
 THE TRADE 
 
 According to statistics furnished by members of the Trade it is 
 estimated that in 1933 there were approximately 950 concerns en- 
 gaged in the Trade, which will come under the proposed definition in 
 this Supplemental Code. These concerns did an estimated business 
 of $150,000,000, and employed approximately 14,000 persons. 
 
 HOURS AND W^AGES 
 
 This Code is supplemental to the Code of Fair Competition for 
 the Wholesaling or Distributing Trade and contains no hours and 
 wages provisions, the members of the Trade being governed by the 
 hours and wages provisions of the last mentioned Code. 
 
 OTHER PROVISIONS OF THE CODE 
 
 The provisions containing supplementary definitions are consid- 
 ered inclusive and accurate. 
 
 The supplement to the administrative provisions of the Code of 
 Fair Competition for the Wholesaling or Distributing Trade estab- 
 lishes a Divisional Code Authority which is fairly and adequately 
 representative of all the different elements in the Trade. 
 
 The Trade Practice Provisions are not considered in any way 
 objectionable. 
 
 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 well 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 organi- 
 
 (2) 
 
zation of industry for the purposes of cooperative action among 
 trade groups, by inducing and maintaining united action of labor 
 and management under adequate governmental sanction and super- 
 vision, by eliminating unfair competitive practices, by promoting 
 the fullest possible use of the present productive capacity of indus- 
 tries, by avoiding undue restriction of production (except as may 
 be temporarilj^ required), by increasing the consumption of indus- 
 trial and agricultural products through increasing purchasing power, 
 by reducing and relieving unemployment, by improving standards of 
 labor, and by otherwise rehabilitating industry. 
 
 (b) Said Trade normally employs not more than 50,003 em- 
 ployees and 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 to membership therein. 
 
 (d) The Supplemental Code is not designed to and will not per- 
 mit monopolies or monopolistic practices. 
 
 (e) The Supplemental Code is not designed to and will not elimi- 
 nate 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 the approval of 
 this Supplemental Code. 
 
 For these reasons the Supplemental Code has been approved. 
 Respectfully, 
 
 Hugh S. Johnson, 
 
 Ad?ninistrator, 
 August 13, 1934. 
 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
 THE ELECTRICAL WHOLESALE TRADE 
 
 A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 
 
 Article I — Purposes 
 
 To effectuate the policies of Title I of the National Industrial 
 Recovery Act, this Supplemental Code is established as a Code 
 of Fair Competition for the Electrical Wholesale Trade, pursuant 
 to Article VI, Section 1 (c) of the General Code of Fair Competition 
 for the Wholesaling or Distributing Trade, approved by the Presi- 
 dent of the L^nited States on January 12, 1934. All provisions of 
 the said General Code "which are not in conflict with the provisions 
 of this Supplemental Code are hereby specifically incorporated by 
 reference in this Supplemental Code and made part hereof. Such 
 
 Provisions of the General Code together with the provisions of this 
 upplemental Code are the standards of fair competition for and 
 are binding upon every member of the said Electrical Wholesale 
 Trade. 
 
 Article II — Definitions 
 
 supplementing article TI of GENERAL CODE 
 
 Section 1. For the purposes of this Supplemental Code, a " whole- 
 saler " or " distributor " or " member of the Trade " is defined to 
 mean any individual, partnership, association, corporation, or other 
 form of enterprise, or any division thereof, which renders a general 
 distribution service and which purchases and maintains at his or 
 its place of business a stock of electrical apparatus, appliances, ma- 
 terials and/or supplies sold for use in connection therewith (except 
 radio apparatus and supplies), or which acts as a middleman or 
 broker buying electrical apparatus, appliances, materials and/or 
 supplies sold for use in connection therewith (except radio appa- 
 ratus and supplies) but which does not necessarily maintain a stock 
 of such merchandise, and which through salesmen, advertising, 
 and/or sales-promotion devices, sells to retailers and/or to institu- 
 tional, commercial, and/or industrial users, and/or to any other 
 buyers except ultimate consumers as defined in the General Code. 
 
 Section 2. The term " Trade " as used herein is defined to be the 
 business in which wholesalers or distributors as above defined engage. 
 
 Section 3. The term " consignment " as used herein is defined to 
 mean the delivery by a member of the Trade to any person, as agent, 
 purchaser or otherwise under any agreement or understanding ex- 
 pressed or implied pursuant to which the receiver of the merchan- 
 dise may at his option return any of such merchandise or claim any 
 credits with respect thereto. 
 
 (4) 
 
Section 4. The term " Divisional Code Authority ", as used herein, 
 shall mean the Divisional Code Authority for the Electrical Whole- 
 sale Trade, a division of the Wholesaling or Distributing Trade. 
 
 Section 5. The term " General Code ", as used herein, shall mean 
 the Code of Fair Competition for the Wholesaling or Distributing 
 Trade. 
 
 Article III — Administration 
 
 SUPPLEMENTING ARTICLE XT, OF THE GENERAL CODE 
 
 Section 1. (a) The Divisional Code Authority shall consist of 
 eleven (11) members (from among the Trade or representatives 
 thereof,) eight (8) to be nominated by the Executive Committee of 
 the National Electrical Wholesalers Association and elected by mem- 
 bers of the Trade who are also members of the Association in ac- 
 cordance with a method to be approved by the Administrator, and 
 three (3) to be chosen by those members of the Trade who are not 
 members of such Association, by a method to be approved by the 
 Administrator. No member of the Trade shall have more than one 
 member on the Divisional Code Authority. 
 
 (b) Only those members of the Trade 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. 
 
 Section 2. The Divisional Code Authority shall have the follow- 
 ing 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 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 em- 
 ployers under this Supplemental Code and under such others, to the 
 end that such Fair Trade Practices may be proposed to the Admin- 
 istrator as an amendment to this Supplemental Code and such other 
 Codes. 
 
 (b) To appoint in each Electrical Wholesale District, as deter- 
 mined by the Divisional Code Authority subject to the approval 
 of the Administrator, a Code Commission to assist the Divisional 
 Code Authority in administering this Supplemental Code ; provided, 
 however, that nothing herein shall relieve the Divisional Code Au- 
 thority of its responsibilities as such. 
 
 (c) To organize, elect officers, hire necessary employees and per- 
 form such other acts as may be necessary for the proper administra- 
 tion of this Supplemental Code. 
 
 (d) To adopt by-laws, rules and regulations for its procedure. 
 
 (e) To use such trade associations and other agencies as it deems 
 proper for the carrying out of any of its activities provided for 
 
herein; provided, however, that nothing herein shall relieve the 
 Divisional Code Authority of its duties and responsibilities under 
 this Supplemental Code, and that such trade associations and 
 agencies shall at all times be subject to and comply with the pro- 
 visions hereof. 
 
 (f ) To obtain from members of the Trade such information and 
 reports as are required for the administration of this Supplemental 
 Code. In addition to information required to be submitted to the 
 General Code Authority and to the Divisional Code Authority, 
 members of the Trade subject to this Supplemental Code shall 
 furnish such statistical information as the Administrator may deem 
 necessary for the purposes recited in Section 3 (a) of the Act to 
 such federal and state agencies as he may designate; provided that 
 nothing in this Supplemental Code shall relieve any member of the 
 Trade of any existing obligation to furnish reports to any govern- 
 ment agency. Xo individual report shall be disclosed to any other 
 member of the Trade or any other party except to such other govern- 
 ment agencies as may be direx^ted by the Administrator. 
 
 Section 3. Nothing contained in this Supplemental Code shaU 
 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. Xor 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 malfeasance or 
 nonfeasance. 
 
 Sectiox 4. 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 tliat such action be suspended to afford an opportunity 
 for investigation of the merits of such action and for further con- 
 sideration by such Divisional Code Authority or agency, pending 
 final actioji. 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 moddfied form. 
 
 SEcraox 5. It being found necessary, in order to support the ad- 
 ministration of this Supplemental Code and to maintain the stand- 
 ards of fair competition established by this Supplemental Code and 
 to effectuate the policy of the Act, the Divisional Code Authority is 
 authorized, subject to the approval of the Administrator: 
 
 (a) To incur such reasonable obligations as are necessary and 
 proper for the foregoing purposes and to meet such obligations out 
 of funds which may be raised as hereinafter provided and which 
 shall be held in trust for the purposes of this Supplemental Code; 
 
 (b) To submit to the Administrator for his approval, subject to 
 such notice and opportunity to be heard as he may deem necessary: 
 (1) an itemized budget for its estimated expenses for the foregoing 
 purposes, and (2) an equitable basis upon which the funds necessary 
 to support such budget shall be contributed by membei's of the Trade ; 
 
 (c) After such budget and basis of contribution have been ap- 
 proved by the Administrator, to determine and secure equitable 
 
contribution as above set forth by all such members of the Traclej 
 and to that end, if necessary, to institute legal proceedings therefor 
 in its OAvn name. 
 
 (d) Each member of the Trade shall pay his or its equitable 
 contribution to the expenses of the maintenance of the Code Au- 
 thority, determined as hereinabove provided, and subject to rules 
 and regulations pertaining thereto issued by the Administrator. 
 Only members of the Trade complying with the code and contribut- 
 ing to the expenses of its administration as hereinabove provided, 
 unless duly exempted from making such contribution, shall be 
 entitled to participate in the selection of members of the Code Au- 
 thority or to receive the benefits of any of its voluntary activities 
 or to make use of any emblem or insignia of the National Recovery 
 Administration. 
 
 (e) The Divisional Code Authority shall neither incur nor pay 
 any obligation in excess of the amount thereof as estimated in its 
 approved budget, except upon approval of the Administrator; and 
 no subsequent budget shall contain any deficiency item for expendi- 
 tures in excess of prior budget estimates except those which tho 
 Administrator shall have so approved. 
 
 Article IV — Trade Practices 
 
 SUPPLEMENTING ARTICLE VU OF THE GENERAL CODE 
 
 Section 1. It shall be an unfair trade practice for any member 
 of the Trade to quote a lump sum price unless such quotation shows 
 the price of each item and unless the total equals the sum of all 
 the items. 
 
 Section 2. Quantity discounts shall be computed on the basis of 
 the quantities shipped and/or billed to a single buyer at one time; 
 I^rovided, however, that when a wholesaler's stock of an item is not 
 sufficient to make a complete shipment a second shipment may bo 
 made from the wholesaler's or a manufacturer's stock, and the quan- 
 tity discounts computed on the basis of the original order. 
 
 Section 3. It shall be an unfair trade practice for any member 
 of the Trade to deliver merchandise to any customer beyond the 
 metropolitan area of the city Avithin w^hich the distributor is located 
 without making a charge equal to that made by a common carrier 
 for the said delivery; provided, however, that transportation costs 
 may be equalized by any individual member of the Trade acting 
 independently as between recognized wholesaling centers. Where 
 necessary, the Divisional Code Authority at the request of the Code 
 Commission, subject to the approval of the Administrator, shall 
 define the metropolitan areas within a district. 
 
 Section 4. It shall be an unfair trade practice to ship any goods 
 on consignment except products of manufacturers whose general 
 plan of distribution is by consignment and not by sale for resale, 
 and except where the Divisional Code Authority under unusual 
 circumstances may allow. 
 
 Section 5. It shall be an unfair trade practice to accept returned 
 goods after sixty days from the date of shipment, or to accept re- 
 turned goods within such sixty day period, without making a service 
 
8 
 
 'charge at least equal to the seller's cost of handling the same; 
 provided, however, that this section shall not apply: (a) if the 
 occasion for the return is the fault of the member of the Trade ; or 
 
 : (b) if such credit is made on account of insolvency or financial em- 
 barrassment of the customer and is reported to and approved by 
 the Divisional Code Authority; or (c) to the extent that this Section 
 may conflict with the law of any State. 
 
 Section 6. It shall be an unfair trade practice for any member 
 of the Trade to sell any electrical apparatus, appliances, materials 
 and/or supplies sold for use in connection therewith (except radio 
 apparatus and supplies) governed by this Supplemental Code from 
 which the name plate, serial number, or any other identifying mark 
 of the manufacturer, if any is customarily attached, has been effaced 
 or removed. 
 
 Section 7. It shall be an unfair trade practice for any member of 
 
 'the Trade to employ subterfuge, directly or indirectly, to avoid 
 or attempt to avoid the provisions of this Supplemental Code or the 
 purposes and intent of the National Industrial Recovery Act, which 
 are to increase employment, provide better wages, promote fair com- 
 petitive methods, better business conditions, and promote the public 
 welfare. 
 
 Section 8. It shall be an unfair trade practice for a member of the 
 
 , Trade to grant to a customer a discount for cash at a percentage 
 greater than the percentage of discount for cash received by such 
 member of the Trade on the same merchandise, or to allow extra 
 discounts for anticipation of payment, or to allow a discount for 
 cash on accounts remaining unpaid after the tenth of the calendar 
 month following date of shipment, or to grant any discount for 
 cash where payment is made by warrant, note or trade acceptance. 
 Section 9. It shall be an unfair trade practice to pay or absorb 
 any charge for sales promotion material of any nature furnished 
 by the manufacturer through the medium of the wholesaler to the 
 dealer; provided, nothing contained herein shall prohibit bona fide 
 
 j cooperative advertising. 
 
 Article V — Pekmissr^ Xrade Practices 
 
 Section 1. In any Trade Area, if a majority in numbers and vol- 
 
 iUme of all known members of the Trade in said Area vote in favor 
 
 of establishing uniform operating hours, such a schedule of uniform 
 
 • operating hours may be recommended tlirough the Divisional Code 
 I Authority to the Administrator for approval. After approval by 
 
 • the Divisional Code Authority and the Administrator, after such 
 .notice and hearing as the Administrator may prescribe, said uniform 
 1 hours shall be binding upon all members of the Trade in such Trade 
 ;Area. 
 
 Article VI — Modification 
 
 This Supplemental Code and all the provisions thereof are ex- 
 pressly made subject to the right of the President in accordance 
 with the provisions of Subsection (b) of Section 10 of the National 
 Industrial Recovery Act from time to time to cancel or modify any 
 order, approval, license, rules or regulations issued under Title I 
 of said Act. 
 
Article VII — Effective Date 
 
 This Supplemental Code shall become effective on the 10th day 
 after its approval by the Administrator, and thereupon the provisions 
 of the Code of Fair Competition for the Industrial Supplies and 
 Distributing Trade shall become inapplicable as to any activities of 
 members of the Electrical Wholesale Trade as hereinbefore defined, 
 which are covered by this Supplemental Code. 
 
 Approved Code No. ^1 — Supplement No. 20. 
 Registry No. 1308-06. 
 
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UNIVERSITY OF FLORIDA 
 
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