Approved Code No. 201-Supplement No. 3 Registry No. 409-1-02 

NATIONAL RECOVERY ADM:INISTRATION 

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 L ~ ·. 

DOCU .cN S.J. I .., -

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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Approved Code No. 201-Supplement No. 8 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL S'l1ATIONERY AND OFFICE 

OUTFITTING TRADE 

As Approved on March 16, 1934 

ORDER 

SUPPLEMENT.ARY CODE OF FAIR COMPETITION FOR THE COMMERCIAL 

STATIONERY AND OFFICE OUTFITTING TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

An application having boon 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 Supplemental 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 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 President, 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, 

.Administrator for Industrial Recovery. 

Approval recommended: 

A. D. WHITESIDE, 

Division .Adniinistrator. 

vVAs HINGToN, D.c., 

March 16, 1934. 

46830°-425-92-34 (1) 
REPORT TO THE PRESIDE T 

The PRE IDENT, 

The White House. 

Sm: 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 Di tributing Trade, 

conducted in Room 2062. Commerce Building, on February 9 1934. 

The Supplemental Code which is attached was presented by duly 

qualified and authorized repre entatives of the Trade complying 

with the tatutory requirements, said to represent about 75 percent 

in number an l about O percent in volwne of sales of the Trade 

·which could be included under this upplemental Code. 

THE TRADE 

The en u of Y\110lcsale Distribution doe not separately classify 

thi Trade. According to what appear to be carefully and intelligently compile 1 tatistic furni hed by :Member of the Trade there 

are at the pre ent t.ime approximately 1 700 concerns engaged in 

thi bu ine . In 1929 there were approximately 2 000 concern so 

engaged. Total annual ale in th Trade in 1929 were about $168,-

000.000 and employee ~ we,re approximately 21,000 in number. In 

193 the . ale had declined to about . 100 000 000 while the number 

of Pmploy had fallen to about 15,300. 

PROVISION F THE SUPPLEMENTAL OODE 

Sin e thi Code is supplemental to the Code of Fair Competition 

for the Whole aling or Distributing Trade, it contains no labor provi i n . The proYi ion containing supplemental definitions are 

inclu ive and accurate. 

The u1 plement to the administrative provisions of the General 

ode establishe a Divi ional Code Authority which is fairly and 

ad quately representatiYe of all the different elements in the Trade. 

The on titution and Bylaws of the National Stationers As ociation 

hortly will be amen led o a to remove all inequitable re trictions 

n member hip. The meth d provided for the election of the mem- b r of the Di j_ i nal C de Authority adequately protects those 

}. embers f the Trade which are not memb rs of the A sociation. 

Th Trade Pra tice rul contained in this Suppl mental Code are 

not in any re pect objecti nable and are designed to promote fair 

comp titi n in the Trude. 

Th Depnty Aclmini. trat r in his final report to me on said Sup- pl m ntal l haYin f und a h rein set forth and on the basis of 

all the proceeding in thi matter; 

(2) 
3 

I find that 

(a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the N a.tional 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 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 fullest possible use of the present productive capacity of industries, 

by avoiding undue restriction of production ( except as may be temporarily 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. 

(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 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 the approval of 

this Supplemental Code. 

For these reasons the Supplemental Code has been approved. 

Respectfully, 

MARCH 16, 1934. 

HUGH s. JOHNSON' 

Admin-istrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE COMMERCIAL STATIONERY AND OFFICE OUTFITTING TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSE 

To further effectuate the policies of Titl~ J of the National Industrial Recovery Act the following provisions are established as a 

Supplemental Code of Fair Competition for the Commercial Stationery 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 

£or 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-DEFIJ\'"ITIONS 

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 thereofhspecifically 

set up to render a general qi tribution service, whic buys and 

maintains at his or its place of business a stock of commercial stationery, 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 industrial u er , but which does not ell in ignificant amounts to ultimate 

consumers. This term shall not include con erns whose primary business is 

under the Retail Code. 

lV holesale1·.-The term " Wholesaler " a 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 

maintain at hi or its place of business a stock of commercial stationery1 office supplies and/or equipment commonly used in the 

outfitting of office and which through sale men advertising and/or 

sale promotion de ices ells to retailers. 

T1·ade.-The term "Trade u ed herein i defined as the 

di tribution of stationer for commercial uses and/ or of those articles 

commonly u d in the outfittino- of offic s. 

~1 ember of the Trade.-Th term" Member of the Trade" as used 

h rein is defined a a "Wholesaler " or "Distributor" whose principal bu iness is in the Trade as defined above. 

(4) 
5 

Regional Districts.-The term " Regional District " as used herein 

is defined to include and be coincident with the geographical divisions established by the National Stationers Association, which 

geographical divisions conform to the Federal Reserve Districts except for the addition of one District known as the Metropolitan 

District of New York, and such other districts as necessary to include territorial possessions of the United States, other than the 

Philippine Islands. 

Divisional Oode A uthority.-The t erm "Divisional Code Authority", as used herein, shall mean the Divisional Code Authority 

for the Commercial Stationery and Office Outfitting Trade, a division of the Wholesaling or Distributing Trade. 

General O ode.-The term " General Code ", as used herein, shall 

mean the Code of Fair Competition for the Wholesaling or Distributing 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 distributors, 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 members 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. ,vith the approval of the Administrator, the Divisional 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, including the power to adopt rules of procedure necessary to effectuate such purposes. vVith 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 considered 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 Supplies 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 tho 
6 

other two mcmbersi to coordinate the administration of the Supplemental Code for the three Trades, so as to assure that such 

administration will be fair and equitable to each of said Trades. Nothing herein, howe,er, shall be considered to relieve the Divi- sional Code Authority of any of its duties and responsibilities. The 

Di,isional 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 adju tment. 

SECTION 4. The succe or to any member of the Divisional Code 

Authorit shall be nominated and elected in accordance with a plan 

devi ed by the Divisional Code Authority subject to the appro,al 

of the ~ lministnttor. 

SECT! N 5. The Divi ional Code Authority shall ha, e the following 

dutie and power in addition to those pr'-'scribed i.n the General 

Code, ubject to re,iew 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 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 Code and under such other , to the end that such 

Fair Trade Practices may be propo~ed to the Administrator as an 

amendment to thi Code an 1 such other Codes. 

(b) To appoint a Regional Committee in each Regional District, 

to a si t the Divi ional Code Authority in administering the Code; 

provided, howe,er, that nothing herein hall relieve the Divisional 

Code Authority of it responsibilitie a such. 

( c) To organize. elect officer , hire mployees. and perform such 

other acts a may be nece sary for the proper admini tration of the 

Code. 

ECTION 6. othing contained in thi Supplemental Code shall 

con titute the members of the Divi ional ode Authority _partners 

for any purpose nor shall any members of the Divisional Code Authority be liable in any manner to anyone for any aet of any other 

member , officer , agent , or employee of the Divi ional Code 

Authorit . ror shall any member of the Divi ional Code Authority 

exerci~ing rea onable diligence in the conduc of his duties herennder, be liable to anyone for any action or omission to act under 

thi. Supplemental Code except for hi own wilful mis£ asance or 

nonfea an e. 

E TIO 7. If the Administrator. hall determine that an action of 

the Divi.~ional Code Authority or any agency thereof may be unfair 

or unju t or contrary to the publi intere t the Admini trator may 

requir that uch action be suspended to afford an opportunity for 

inv stio-ation of the m rit of . uch action and for further consideration by uch Divisional Code uthority or agency, pending final 

action whi h shall not be effective unless the Administrator approves 

or unl he ·hall fail to di. approYe after thirty days no ice to him 

of intention to roceed with uch action in its original or modified 

form. 
7 

ARTICLE IV-TnADE 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 customer 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, ection 2, of the General Code. 

SECTION 1. Open Price Arra'!l,gement ancl Aocorurnting.-(a) The 

Divisional Code Authority shall 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 and approved by the Administrator, full details 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 Divisional 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 commo<l.ity or commodities, which schedule shall become effective immediately 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 p~rmit 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 delivery, 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 

effed 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 hall furnish such copies _to _any other interested party upon 

request and receipt of cost of furnishing the same. 

(g) o member of the Trade who s~all have filed a schedule o_f 

prices shall sell :for other than such prices or upon terms or conditions 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 o:f a competitor whose 

price does not violate such Section. 

(i) For the purpose of determining whether Section l(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 quotation, order, contract, or sale of any product of the Trade, including information as to specifications, quantities, price, conditions of 

storage, transportation or delivery, terms o:f billing, cash or trade 

. discounts allowed, and other .Pertinent :facts relating to such quotation, 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 o:f the Administrator, any such 

information shall be given to him. The agency shall analyze, consolidate, 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 of damaged 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 o:f approval 

o:f 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 commodity 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 hall thereafter 

become a part of this Code and shall be effective as such. 

SECTION 4. vVithin 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 o:f the industry as it may select 
9 

in cooperation with the Bureau of Standards of the Department o:f 

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 DA TE 

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. 

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UNIVERSITY OF FLO RIDA 

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