Approved Code No. 201 — Supplement No. 3 Registry No. 409—1—02 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE COMMERCIAL STATIONERY AND OFFICE OUTFITTING TRADE (A Division of the Wholesaling or Distributing Trade) AS APPROVED ON MARCH 16, 1934 WE DO OUR PART UNIV. OF FL LIB. ADD U.S. PEPG3MTOKY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON ; 1934 For sale by the Superintendent of Documents. Washington. D.C. Price 5 cents This publication is for sala 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. Cleveland, Ohio: Chamber of Commerce. 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Approved Code No. 201 — Supplement No. 3 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE COMMERCIAL STATIONERY AND OFFICE OUTFITTING TRADE As Approved on March 16, 1934 ORDER Supplementary Code or Fair Competition for the Commercial Stationery and Office Outfitting 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 Commercial Stationery and Office Outfitting Trade to the Code of Fair Competition for the Wholesaling or Distributing Trade, and hearings having been duly held thereon and the annexed report on said Code, containing find- ings 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 recommended : A. D. Whiteside, Division Administrator. Washington, D.C., March 16, 1934. 46830° 425-92 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 Commercial Stationery and Office Out- fitting Trade, a division of the Wholesaling or Distributing Trade, conducted in Room 2062. Commerce Building, on February 9, 1934. The Supplemental Code which is attached was presented by duly qualified and authorized representatives of the Trade, complying with the statutory requirements, said to represent about 75 percent in number and about 80 percent in volume of sales of the Trade which could be included under this Supplemental Code. THE TRADE Tlie 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 1,700 concerns engaged in this business. In 1929 there were approximately 2,000 concerns so engaged. Total annual sales in the Trade in 1929 were about $168,- 000.000 and employees were approximately 21,000 in number. In 1933 the sales bad declined to about $100,000,000 while the number of employees had fallen to about 15.300. PROVISIONS OF THE SUPPLEMENTAL CODE Since this Code is supplemental to the Code of Fair Competition for the Wholesaling or Distributing Trade, it contains no labor pro- visions. 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 different elements in the Trade. The Constitution and Bylaws of the National Stationers Association shortly will be amended so as to remove all inequitable restrictions on membership. The method provided for the election of the mem- bers 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 Code are not in any respect objectionable and are designed to promote fair competition in the Trade. 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; (2) I find that (a) Said Supplemental Code is well designed to promote the poli- cies 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 organiza- tion of trade for the purpose of cooperative action among the trade groups, by inducing and 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 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 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 elimi- nate 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. For these reasons the Supplemental Code has been approved. Respectfully, Hugh S. Johnson, A dmirdstrator. March 16, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE COMMERCIAL STATIONERY AND OFFICE OUT- FITTING TRADE A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE Article I — Purposes To further effectuate the policies of Title* J of the National Indus- trial Recovery Act the following provisions are established as a Supplemental Code of Fair Competition for the Commercial Sta- tionery and Office Outfitting Trade (which Trade has heretofore, by an order of the Administrator, been made a Division of the Wholesaling or Distributing Trade) to the Code of Fair Competition for such Wholesaling or Distributing Trade, as provided by Article VI, Section 1 (c) thereof, and shall be considered a part of and in connection with such Wholesaling or Distributing Code, and both such codes shall be binding upon every member of such Commercial Stationery and Office Outfitting Trade. Article II — Definitions Supplementing Article II of the General Code. Distributor. — The term " Distributor " as used herein is defined as a person, or firm or definitely organized division thereof, specifically set up to render a general distribution service, which buys and maintains at his or its place of business a stock of commercial station- ery, office supplies and/or equipment commonly used in the outfitting of offices, and which through salesmen, advertising and/or sales promotion devices, sells to institutional, commercial, and/or indus- trial users, but which does not sell in significant amounts to ultimate consumers. This term shall not include concerns whose primary business is under the Retail Code. Wholesaler. — The term " Wholesaler " as used herein is defined as a person or firm, or definitely organized division thereof, specifically set up to render a general distribution service, which buys and maintains at his or its place of business a stock of commercial sta- tionery, office supplies and/or equipment commonly used in the outfitting of offices, and which through salesmen, advertising and/or sales promotion devices, sells to retailers. Trade. — The term " Trade " as used herein is defined as the distribution of stationery for commercial uses and/or of those articles commonly used in the outfitting of offices. Member of the Trade. — The term " Member of the Trade " as used herein is defined as a " Wholesaler " or " Distributor " whose prin- cipal business is in the Trade as defined above. (4) Regional Districts. — The term " Regional District " as used herein is defined to include and be coincident with the geographical divi- sions established by the National Stationers Association, which geographical divisions conform to the Federal Reserve Districts ex- cept for the addition of one District known as the Metropolitan District of New York, and such other districts as necessary to in- clude territorial possessions of the United States, other than the Philippine Islands. Divisional Code Authority. — The term " Divisional Code Au- thority ", as used herein, shall mean the Divisional Code Authority for the Commercial Stationery and Office Outfitting Trade, a divi- sion 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. Article III Supplementing Article VI, Sections 2 and 5, of the General Code. Section 1. (a) The Divisional Code Authority shall be composed of six members representing the Trade, two of whom shall be dis- tributors, two wholesalers, and two members of the Trade whose principal business is Office Outfitting. (b) Such six representatives shall be elected from a National Council to be composed of two distributors, two wholesalers, and two members of the Trade whose principal business is Office Outfitting, selected from each regional district by a majority vote of all mem- bers of the Trade in such district who assent to the provisions of the General and Supplemental Codes by signing a Certificate of Assent and Compliance. (c) The preparation of ballots and the manner of electing both the representatives to the National Council and the members of the Divisional Code Authority shall be subject to the approval of the Administrator. Section 2. With the approval of the Administrator, the Divi- sional Code Authority shall appoint appropriate agencies for the administration of the code in each regional district or subdivision of such district and shall delegate to said agency the necessary power and authority for the administration of the two codes, in- cluding the power to adopt rules of procedure necessary to effec- tuate such purposes. With the approval of the Administrator the Divisional Code Authority may use for this purpose the facilities of those trade associations which are duly representative of such district or subdivisions. Nothing herein, however, shall be consid- ered to relieve the Divisional Code Authority of any of its duties and responsibilities. Section 3. The Divisional Code Authority shall appoint one of its members to a committee which (if and when the Divisional Code Authorities of the Wholesale Stationery Trade and the School Sup- plies Trade shall appoint one member each, thereto) shall constitute a coordinating committee of the three Trades, and the Divisional Code Authority shall thereupon delegate to such member such of its general powers as may be necessary for him, in collaboration with the other two members, to coordinate the administration of the Sup- plemental Codes for the three Trades, so as to assure that such administration will be fair and equitable to each of said Trades. Nothing herein, however, shall be considered to relieve the Divi- sional Code Authority of any of its duties and responsibilities. The Divisional Code Authority shall abide by any judgment of the Coor- dinating Committee requiring that committee to report to the Administrator any alleged violation of the provisions of this Sup- plemental Code which requires the cooperation of the three trades in its adjustment. Section 4. 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 5. The Divisional Code Authority shall have the following duties and powers in addition to those prescribed in the General Code, subject to review by the Administrator. (a) To appoint a Trade Practice Committee, which shall meet wi + h 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 em- ployers 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 6. Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authority partners for any purpose nor shall any members of the Divisional Code Au- thority be liable in any manner to anyone for any aet of any other members, officers, agents, or employees of the Divisional Code Authority. Nor shall any member of the Divisional Code Authority, exercising reasonable diligence in the conduct of his duties here- under, be liable to anyone for any action or omission to act, under this Supplemental Code, except for his own wilful misfeasance or nonfeasance. Section 7. 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 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. Section 1. Price Guarantee. — The sale or offer for sale of any office furniture under any form of guarantee to the purchaser against either an advance or decline in the price of such office furniture is an unfair method of competition. Section 2. Factory Shipments. — On f.o.b. factory shipments of merchandise direct to the customer on which the selling member of the Trade has not filed an f.o.b. factory price in his open price schedule and which do not include any handling service on the part of such member of the Trade, due allowance can be given to the cus- tomer in lieu of such service; but in no case can the price quoted be below invoice or replacement cost, whichever is lower. Section 3. The trade practices contained in this Supplemental Code shall apply only to wholesalers or distributors in this Trade as defined in Article II. Article V — Permissive Trade Practices Supplementing Article VIII, Section 2, of the General Code. Section 1. Open Price Arrangement and Accounting. — (a) The Divisional Code Authority shall cause to be formulated an account- ing 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 and approved by the Administrator, full de- tails concerning them shall be made available to all members of the Trade. Thereafter all members of the Trade shall determine and/or estimate costs in accordance with the principles of such methods. (b) With the advice and consent of the Administrator, the Divi- sional Code Authority may at any time determine that an open price plan of selling such commodity or commodities of the Trade as it shall specify shall be put into effect. Notice of such determination shall be announced to all known members of the Trade who distribute such commodities. (c) Every such member of the Trade shall file with the Divisional Code Authority a schedule of prices and terms of sale for such com- modity or commodities, which schedule shall become effective imme- diately upon filing. (d) All such schedules shall be in such form as the Divisional Code Authority shall prescribe and shall contain all information necessary to permit any interested person to determine the exact net price per unit after all discounts or other deductions have been made, whether pertaining to a single order, a commitment for future de- livery, or a contract. Any such schedule, or any price therein, may apply nationally or may be limited to one or more geographical divisions. (e) A revised schedule or schedules, or a new schedule or sched- ules, may be filed by a member of the Trade with the Divisional Code Authority at any time. Such new or revised schedules shall take effect immediately upon filing. (f) The Divisional Code Authority shall promptly supply all members of the Trade with copies of all schedules and revised sched- 8 ules, and shall furnish such copies to any other interested party upon request and receipt of cost of furnishing the same. (g) No member of the Trade who shall have filed a schedule of prices shall sell for other than such prices or upon terms or condi- tions other than those stated in such price schedule. (h) No member of the Trade shall sell any commodity on which he has filed no price at less than the cost, determined as provided in Section 1(a) hereof, except to meet the price of a competitor whose price does not violate such Section. (i) For the purpose of determining whether Section 1(h) hereof has been complied with, every member of the Trade shall, upon the request of the Divisional Code Authority, furnish to a confidential agency designated by the Divisional Code Authority, in respect to closed transactions only, complete information in regard to any quo- tation, order, contract, or sale of any product of the Trade, includ- ing information as to specifications, quantities, price, conditions of storage, transportation or delivery, terms of billing, cash or trade discounts allowed, and other pertinent facts relating to such quota- tion, contract, or sale. Such information shall be held as secret and confidential between the agency and the reporting member of the Trade; provided that, upon request of the Administrator, any such information shall be given to him. The agency shall analyze, con- solidate, and digest the reports and shall disclose to the Divisional Code Authority such information as may be necessary to aid the investigation. (j) Nothing herein contained shall be construed to prevent the disposition of distress merchandise required to be sold to liquidate a defunct or insolvent business, of discontinued lines, or 01 dam- aged goods or seconds, in such manner and at such price and such terms and conditions as the Divisional Code Authority may approve. (k) Nothing herein contained shall be construed to prevent the fulfillment of a bona fide contract existing on the date of approval of this Code. Section 2. Installment Sales. — In the case of installment sales, the Divisional Code Authority may make recommendations to the Administrator relative to minimum down payments on any com- modity of the Trade in any Regional District. The Administrator may, after such notice and/or hearing as he may prescribe, approve of said recommendation, which shall thereafter become a part of this Code and shall be effective as such. Section 3. (a) The Divisional Code Authority may recommend to the Administrator a plan for establishing, on a regional basis, maximum trade-in allowances for used desks and chairs and other items ordinarily used for trade-in purposes, and for enforcing the same. The Administrator may, after such notice and/or hearing as he may prescribe, approve of said plan, which shall thereafter become a part of this Code and shall be effective as such. Section 4. Within one month after the effective date of this Code, the Divisional Code Authority shall appoint a committee to make a study with a view to establishing, as soon as possible after the effective date of the Code, classifications and standards of dimension and quality for such of the products of the industry as it may select in cooperation with the Bureau of Standards of the Department of Commerce and/or any other organization which will guarantee both Government and Consumer representation in the drafting of such standards. This committee shall within one year after the date of its appointment report its recommendations to the Divisional Code Authority. Article VI — Effective Date This Supplemental Code shall become effective on the tenth day after its approval by the Administrator. Approved Code No. 201, Supplement No. 3. Registry No. 409-1-02. o