Approved Code No. 201 — Supplement No. 9 Registry No. 910—01 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LEATHER AND SHOE FINDINGS TRADE (A Division of the Wholesaling or Distributing Trade) AS APPROVED ON MAY 17, 1934 WE DO OUR PART UNIV. OF FL UI. DOCUA<£felT8 DEPT. u.fiw MPo^rroRY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documeiits, Washington, D.C. -------- Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Ofiice, Washington. D.C., and by district otliccs of the I^.ureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Pest Office Buihling. Birmingham. Ala.: 257 Federal Building. Boston, Mass. : ISUl Customhouse. Buffalo, N.Y. : Chamber 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. 9 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LEATHER AND SHOE FINDINGS TRADE As Approved on May 17, 1934 ORDER SUPPLEMENTAEY CoDE OF FaIR COMPETITION FOR THE LeATIIER AND Shoe Findings Trade A DIVISION OF the AVIIOLESAIJNG OR DISTKH5UTING 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 Leather and Shoe Findings 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 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 approved. Hugh S. Johnson, Adininistrator for lixdustnal Recovery. Approval recommended : H. O. King, Division Administrator. Washington, D.C, May 17, 1934. 60082° 544-103 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report of the Hearinir on the Supplemental Code of Fair Competition for the Leather and Shoe Findings Trade, a division of the Wholesaling or Distributing Trade, conducted in Room 20G2, Department of Commerce Building, on February 12, 1934. The Supplemental Code which is attached was presented by duly qualified and authorized representatives of the Trade, complying with the statutory requirements. THE TRADE The Census of Wholesale Distribution does not separately classify this Trade. According to what appear to be carefully and intelli- gently compiled statistics furnished by members of the Trade there are at the present time approximately 854 concerns engaged in this business. In 1929 there were approximately 1,100 concerns so engaged. Total annual sales in the Trade in 1929 were about $300,000,000 and employees were approximately 11,000 in number. On the basis of 1932 figures the Trade represented that business had declined to about $120,000,000 while the number of employees had fallen to about 9,000 in 1933. PROVISIONS OF THE SUPPLEMENTAL CODE Since this Code is Supplemental to tlie Code of Fair Competition 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 of the General Code establishes a Divisional Code Authority which is fairly and adequately representative of all the members of the Trade. The method provided for the election of the members of the Divisional Code Authority adequately protects those members of the Trade which are not members of the Association. The Trade Practice rules contained in this Supplemental Coile are not in any respect objectionable and are designed to promote fair competition in the Trade. FINDINGS Tlie 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 Siij)plemental Code is well designed to promot^^ the policies and purposes of Title I of the National Industruil Recovery (2) 3 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 bj^ promoting the organiza- tion of trade for the purpose of cooperative action among the trade groups, by inducing ancl maintaining united action of labor and management under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the full- est possible use of the present productive capacity of industries, by avoiding undue restriction of production (except as may be tempo- rarily 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 emploj'ees and is not classified by ma 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 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, Administrator. May 17, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LEATHER AND SHOE FINDINGS 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 Leather and Shoe Findings Trade to the Code of Fair Competition for the Wholesal- ing or Distributing Trade, as provided by Article VI, Section 1 (c) thereof, which shall be construed as a part of and in connection with the said Code for the Wholesaling or Distributing Trade, and both of these Codes shall be binding upon every member of the Leather and Shoe Findings Trade. Article II — Definitions supplementing article II OF the general code 1. The term " Trade ", as used herein, shall mean the sale or dis- tribution of leather and shoe findings, shoe-store supplies, and/or shoe-repairing machinery to the shoe repairer or the retail trade. 2. The term " member of the Trade ", as used herein, shall mean any person or firm, or definitely organized division thereof, engaged in the Trade, as above defined. 3. The term " owner-operator ", as used herein, shall mean any member of the Trade who employs no one, but who personally per- forms the function of the Trade. 4. The term " Divisional Code Authority ", as used herein, shall mean the Divisional Code Authority for the Leather and Shoe Find- ings Trade, a division of the Wholesaling or Distributing Trade. Article III — Administration supplementing article vi, section 2 (E) and section 5 OF the GENERAL CODE 1. Organization and Const itutiofi. — (a) The Divisional Code Au- thority shall consist of seventeen (17) members, namely, ten (10) to be selected by the Chairman and President of the National Leather and Shoe Finders Association from the members of such Association; one (1) from each of the five (5) following Associations: New Eng- land Leather and Findings Association, Inc., Philadelphia Leather and Shoe Finders Association, Metropolitan Leather and Findings Association, Inc., Chicago Leather and Finders Association, Shoe Finders Board of Trade, each such Association to select its candi- (4) date by a nominating committee, appointed by its Association, which nominee shall be confirmed by a majority vote of the members of its Association; and two (2) to be selected b}^ members of the Trade who are not members of any Association, in accordance with a method approved by the Administrator. 2. Poicers and Duties. — The Divisional Code Authority shall have the following powers in addition to those provided in the General Code. (a) Cost Protection. — Subject to the approval of the Administra- tor, to cause to be formulated an accounting system and methods of cost finding and/or estimating, capable of use by all members of the Trade. After such system and methods have been formulated, full details concerning them shall be made available to all members. Thereafter, all members shall determine and/or estimate costs in accordance with the principles of such methods. (b) National Recovery Administration Insignia. — To cooperate with the Administrator in regulating the use of any National Re- covery Administration insignia solely by those members of the Trade who are complying with this Supplemental Code. (c) Regional Committees. — To establish Regional Committees in those regions established by it and to delegate such of its powers to each of such Regional Committees as may be necessary for the proper administration of this Code ; provided that nothing herein shall be construed to relieve the Divisional Code' Authority of any of its responsibilities as such. (1) Each Regional Committee may recommend to the Divisional Code Authority uniform hours (not less than 50 hours per week) for the opening and closing of the stores of members of the Trade for its Region and the Divisional Code Authority may, subject to the approval of the Administrator, establish such uniform hours for opening and closing in such regions; provided that nothing herein shall be construed to allow members of the Trade in any region to keep their stores open for longer than seventy (TO) hours in any one week. (d) Trade Practice Committee. — 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 Wholesaling or Distribut- ing Trade) 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 amendments to this Supplemental Code and such other codes. (e) Organization. — To organize, elect oiRcers and perform any other acts necessary for the proper administration of this Supple- mental Code. 3. Scope. — If the Administrator shall determine that any action of the Divisional Code Authority or of any Regional Committee may be unfair, unjust or contrary to the public interest, the Admin- istrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and fur- ther consideration by such Divisional Code Authority or Regional Committee, pending final action which shall not be effective unless the Administrator approves, or unless he shall fail to disapprove after thirty (30) days notice to him of an intention to proceed with such action in its original or modified form. 4. Liability. — Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authority partners for any purpose. Nor shall any member of the Divisional Code Authority be liable in any manner to any one for anj^ 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 any one for any act or omission to act under this Supple- mental Code, except for his own willful misfeasance or non-feasance. Article IV — ^Unfair Trade Practices SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE The following are hereby declared to be unfair trade practices, and it shall be a violation of this Supplemental Code for any mem- ber of the Trade : 1. Hours of Biosifiess. — To keep their places of business open, or engage in the Trade, more than six (6) days in any week or on legal or public holidays, which, when one falls on what would otherwise be an ordinary working day, shall be considered as part of the six (6) days, or open in excess of seventy (70) hours in any week ; provided that nothing herein shall be construed to permit violation of any federal, state or local law. These provisions shall also a[)ply to owner-operators. 2. /Sales below Cost. — To sell or offer for sale any product at a price less than established by the cost-finding and/or estimating system provided by Article III, Section 2, Paragraph (a) ; provided, however, that bona fide sales for the purpose of closing out discon- tinued, obsolete, or distressed merchandise may be made upon such terms and conditions as may be necessary to effect their sale. Full details of such sales including the amount of such merchandise on hand and the date of its purchase must be reported to the Divi- sional Code Authority l)efore the date of such sale. The Divisional Code Authority may conduct such investigations as may be neces- sary to determine if such sales are being used to defeat the i)urposes of this Section, the burden of proving good faith to be on the member of the Trade. 3. Terms of Sale. — To sell or give better terms than the following : 2% discount for pa3^ment on or before 10th of following month or in 30 days from date of invoice; due net following day. Xo dating allowed. 4. Subterfuge. — (a) To enter into an arrangement with a manu- facturer or tanner whereby a member of the Trade lends his name to a transaction as a subterfuge to conceal what is in reality a direct sale between manufacturer and retailer and/or shoe repairer. (b) To employ subterfuge, directly or indirectly, to avoid or attempt to avoid the ])rovisions of this Code or the purposes and intent of the National Industrial Recovery Act, which are to increase employment, provide better wages, promote fair competitive methods, better business conditions, and promote the public welfare. 5. Recording Sales. — To fail to record every sale by invoice, bill or sales slip, or in some other form which will show a complete record of the transaction. 6. Display of Insignia. — To display the National Recovery Ad- ministration insignia when not entitled to display'- same. Article V — Effecttve Date This Code shall become effective on the tenth day after its ap- proval by the Administrator. Approved Code No. 201 — Supplement No. 9. Registry No. 910-01. o Digitized by the Internet Arclnive in 2011 witli funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/supplementarycod4914unit UNIVERSITY OF FLORIDA 3 1262 08850 4914