1363-C Registry No. 1399-1-16 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRIAL SUPPLIES AND 

DISTRIBUTORS TRADE 

AS APPROVED ON OCTOBER 23, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PAR'f 

- ..U.~~~:::::'~,~;-·;----r:i- Executive Order 

UNIV. OF· f-; Lill. 2. etter of Transmittal 

8. . ..... -.... ,.. 

, .. , 0 -......... ----- . 

u~•- olf'(.)ltnOIW · u~~::...::.::;_;;_;.....__. __ _.. UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHING TON : 1933 

I 

( 

For sale by the Superintendent or 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, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich. : 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: Room 405, 421 West Market Street. 

Memphis, Tenn.: 266 South Water Street. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: Room 812, 20 South Fifteenth Street. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 1406 Vance Building. 

(II) 

• 
EXECUTIVE ORDER 

CODE OF FAIR CoMPETITION FOR THE INDUSTRIAL SUPPLIES AND 

MACHINERY DISTRIBUTORS' 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, £or my approval of a Code 

of Fair Competition for the Industrial Supplies and Machinery 

Distributors' Trade, and hearings having been held thereon and the 

Administrator having rendered his report containing an analysis of 

the said Code of Fair Competition, together with his recommenda• 

tions and findings with respect thereto, and the Administrator hav• 

ing found that the said Code of Fair Competition complies in all 

respects with the pertinent provisions of Title I of said Act and that 

the requirements of clauses (1) and (2) of subsection (a) of Section 

3 of the said Act have been met: · 

NOW THEREFORE, I, Franklin D. Roosevelt, President of the 

United States pursuant to the authority vested in me by Title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendationst. and 

findings of the Administrator and do order that the said Cocte of 

Fair Competition be and is hereby approved. 

· FRANKLIN D. ROOSEVELT. 

THE WHITE HousE, 

October 23, 1933. 

Approval recommended: 

HUGH s. JOHNSON, 

.Administrator. 

17479"-188-43-83 

(III) 
The PRESIDENT, 

OCTOBER 12, 1933. 

The White House. 

Sm: This is a report of the hearing on the Code of Fair Competition for the Industrial Supplies and Machinery Distributors' Trade 

in the United States, conducted in Washington on September 27, 

1933, in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

A maximum work week of 40 hours and not to exceed more than 

8 hours per day is adopted under this Code with provision for 48 

hours' maximum during three weeks of any six months' period to be 

averaged down to 40 hours per week. 

Executives receiving more than $35.00 per week, watchmen, and 

outside salesmen are excepted from the schedule of minimum hours 

while service employees, those engaged in plant maintenance, and 

stock-room employees may work a maximum of 48 hours with payment of time and one third for all hours worked in excess of 40 

hours. 

No person under 16 years of age shall be employed and none under 

18 employed in any hazardous occupation. 

The m1ninium rates of pay shall be $15.00 per week in cities and 

trade areas of 500,000 population or more, $14.50 per week in cities 

and trade areas of 250,000 to 500,000 population, and $14.00 if the 

population is over 2,500 and not more than 250,000. In towns of 

not more than 2,500, all wages of such employees shall be· increased 

by not less than 20%, provided that this shall not require wages 

in excess of $12.00 per week. 

Part-time employees in each area shall receive a minimum hourly 

wage in relation to 40 hours and the minimum weekly rate. 

Learners and junior em:ployees shall receive not less than $2.00 

per week less than the min1mmn rafo and not more than 5% of the 

total number of employees can be so classified. 

ECONOMIC EFFECT OF THE CODE 

The 40-hour week stipulated in the Code is a reduction from an 

average of more than 48 hours per week, and the trade estimates 

that under the provision of the Code the number of employees will 

be increased 20 percent. 

The minimum wage rates specified represent an increase of from 

20 to 100 percent over the wages prevailing in the same classifications 

before the adoption of the President's Re-employment Agreement. 

The importance of the trade is evidenced by the fact that its members normally employ 27,000, have a capital investment of 

(IV) 
V 

$172,000,000, and have normal average annual sales of $335,000,000. 

This trade distributes machinery and industrial supplies-to railroads, ships, mines, mills, factories, and contractors. It is nationwide, its customers including all users of industrial supplies and 

machinery. 

The combination of two sectional di visions of trade under one 

Code is extremely gratifying. Each division will be properly represented in the work of administration by re~ional committees, acting under the supervision of the Code Authority. These committees 

will n_ot only relieve the Code Authority of local details of administration, but are truly representative of the regions from which they 

are elected. 

FINDINGS 

The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly refresentative of the 

Industrial Supplies and Machinery Distributors Trade; and that 

( c) The Code as recommended is not designated to promote 

monopolies or to eliminate or oppress small enterprises and will not 

operate to discriminate against them and will tend to effectuate the 

policy of Title I of the National Industrial Recovery Act. 

It is recommended, the ref ore, that this Code be immediately 

adopted. 

Respectfully, 

HUGH s. JOHNSON, 

Administrat~ 

• 

CODE OF FAIR COMPETITION FOR THE INDUSTRIAL 

SUPPLIES AND MACHINERY DISTRIBUTORS' TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the followin<Y provisions are submitted as a Code o-f 

Fair Competition for the fndustrial Supplies and Machinery Distributors' Trade, and upon approval by the President, shall be the 

standard of fair competition for this trade. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Industrial Supplies and Machinery Distributors' Trade", or "trade", as used herein, includes the warehousing, selling, distributing, and/ or servicing in conjunction therewith of tools, equipment, and supplies for railroads, ships, boats, 

mines, rriills, factories, and/or other industrial users. 

SEc. 2. A Distributor of Industrial Supplies and Machinery shall 

be defined as one who sells to industrial consumers and other trade 

outlets; and who has at least the following facilities and services: 

(a) An adequate investment, 

(b) Storage space sufficient to carry the stock required in Paragraph ( e) herein and necessary facilities for operating same, 

~

c) A proper accounting system, sales, office, and delivery service, 

d) Regularly maintains salesmen in his territory to demonstrate 

an sell the lines handled, 

( e) Carries a sufficiently complete purchased stock of industrial 

tools, equipment, and supplies to meet normal requirements in his 

territory, 

( f) Assumes the credit risk of his sales. 

Nothing in this Section 2, Article II, however, shall be construed 

to exclude in any way as a member of the trade and/ or from the 

operation of this Code, anyone who sells tools, equipment, and supplies to the industrial users described in Section 1, Article II hereof 

except with the approval of such exclusion by the Administrator. 

SEc. 3. The term "employee" as used herein includes any person 

engaged in any phase of the trade in any capacity in the nature of 

employee, irrespective of the method of payment of his compensation. 

SEc. 4. The term " employer " as used herein includes anyone for 

whose benefit such an employee is so engaged. 

SEC. 5. The term "member of the trade" as used herein includes 

any employer who shall be subject to this Code. 

SEc. 6. The term " member of the Code " as used herein includes 

any member of the trade who shall expressly signify assent to this 

Code. 

(1) 
2 

SEo. 7. The term "effective date" as used herein means the tenth 

day after this Code shall have been approved by the President of the 

United States. 

SEC. 8. The term "learner" as used herein is a person having no 

previous experience in the trade, and whose employment as such 

shall not exceed 6 months. 

SEC. 9. The term "act" as used herein is Title I of the National 

Industrial Recovery Act. 

SEC. 10. The term "Administrator" as used herein is the National 

Recovery Administrator. 

SEC. 11. Population for the purposes of this Code shall be determined by reference to the 1930 Federal Census. 

ARTICLE III-HoURs 

On and after effective date of this Code. 

SECTION 1. No employee in the Trade, except as hereinafter provided, shall be employed for more than ei~ht (8) hours in any one 

day nor for more than forty ( 40) hours 111 any one week, nor for 

more than six (6) days in any one week; provided, however, that 

during inventory and other peak periods, such employees may be 

permitted to work not more than forty-eight ( 48) hours in any one 

week, or not more than three (3) weeks in any six (6) months period; 

provided, further, that the average shall not be more than forty (40) 

hours per week in any six ( 6) months period. 

SEo. 2. The limitation of Section 1 of this Article III as to hours 

of work shall not apply to persons in a managerial, executive, or 

supervisory capacity, who now receive more than $35.00 per week, or 

to watchmen and out.side salesmen. 

SEo. 3. The limitation of Section 1 of the Article III as to hours 

of work shall not apply to persons engaged in outside delivery service, plant maintenance, outside repair, and/or installation service, 

nor to persons engaged in stock receiving and shipping service, who 

shall be permitted to work not more than forty--eight (48) hours in 

any one week, provided time and one third 1s paid ·for all hours 

worked in excess of forty ( 40) hours per week. 

SEo. 4. No person under the age of sixteen ( 16) years shall be 

employed by any member of the Trade, and no person under the 

age of eighteen (18) years shall be employed in any hazardous 

occupation. 

SEC. 5. The total number of hours which shall be worked by any 

employee whether with one or more employers, shall not exceed 

the maximum as prescribed herein. 

ARTICLE IV-WAGES 

On and after effective date of this Code. 

SECTION 1. (a) The minimum rates of pay except as J?rescribed 

in Section 2 of this Article IV shall be as follows in cities of the 

population listed below and their immediate trade areas : 

Over 500,000 population not less than $15.00 per week; 

250,000 to 500,000 population not less than $14.50 per week; 

2,500 to 250,000 population not less than $14.00 per week. 
8 

In towns of less than 2,500 population, all wages of such em41 

ployees shall be increased by not less than 20%, provided that this 

shall not require wages in excess of $12.00 per week. 

SEo. 2. No part time or casual employee shall be paid at a rate peihour less than the minimum rates prescribed in Section 1 of this 

Article IV, which minimum rates are based on a forty (40) hour 

week, applying to the area in which the employer is located. 

SEo. 3. Learners may be paid at the rate of $2.00 less per week 

than the minimum rates prescribed in Section 1 of this Article IV, 

provided that in no case shall the minimum be less than $12.00 per 

week. 

SEc. 4. Junior employees between the ages of sixteen (16) and 

eighteen (18) years, inclusive, with less than six (6) months' experience in the trade, may be paid at a rate of $2.00 less per week than 

the minimum rates prescribed in Section 1 of this Article IV, provided that in no case shall the minimum be less than $10.00 per 

week. 

SEc. 5. Such learners and junior employees mentioned in Sections 

3 and 4 of this Article IV employed by any one employer shall not 

exceed in number more than five ( 5) percent of the total number of 

employees of such employer, provided that each employer may have 

at least one learner or junior employee. 

SEc. 6. No employee now receiving compensation at a rate in excess 

of the minimum herein prescribed shall have his compensation reduced on account of any reduction in the weekly hours of employment to conform with the requirements of Article III. 

SEc. 7. The hourly wage rate or salary of all employees receiving 

more than the minimum rate or salary herein prescribed shall be 

equitably adjusted, if such adjustments have not already been made. 

SEc. 8. No distinction in rates shall be made between male and 

female employees, where the same class of work is performed, regardless of whether compensation is calculated on an hourly, weekly, or 

monthly basis. 

SEc. 9. No employee shall be included in one of the classifications 

excepted from the provisions of this Code unless the identical functions were identically classified on June 16, 1933. 

SEc. 10. No person who has worked as a learner for one member 

of the trade for the period of time prescribed under the term 

"learner" in Article II may thereafter be classified as a learner. 

SEc. 11. No employer shall reduce the compensation for employment now in excess of the minimum wages herein prescribed, notwithstanding that the hours worked in such employment may be 

hereby reduced. 

SEC. 12. The provisions for a minimum wage in this Code establish a guaranteed rate of pay per hour or per week of employment, 

regardless of whether the employees' compensation is calculated on 

an hourly, weekly or monthly basis. 

ARTICLE V-ADMINISTRATION 

SECTION 1. To further effectuate the policies of the Act, a Code 

Authority is hereby set up to cooperate with the Administrator in 

the administration of this Code. 
4 

(a) The Code Authority shall consist of eight members of the 

Trade ( no two of whom shall represent the same member) and one 

or more appointees of the Administrator if he so desires. The latter 

shall have no vote. The members of the Code Authority shall be 

elected by the members of the Trade, each member of the Trade to 

have only one vote. Such election shall be by mail ballots, which 

ballots shall be sent to all members of the Trade. The Code 

Authority shall complete its own organization by election of officers. 

(b) Any member of the Trade is eligible for membership in the 

Code and there shall be no inequitable restrictions on such membership. Any such member may participate in the preparation and 

any revision of and additions or supplements to this Code by accepting his proper pro rata share of the cost and responsibility of 

creatjng and administering it, either by becoming a member of 

the.National Supply and Machinery Distributors' Association or 

the Southern Supply :Machine Distributors' Association or by paying to the Code Authority his pro rata share of the costs, based on 

the dollar volume of sales by the entire trade. There shall be no 

initiation fee for members of the Trade who participate only in 

the Code and do not become members of one of the said Associations. 

8Ec. 2. The Code Authority shall have the following duties and 

powers to the extent permitted by the Act and subject to review 

by the Administrator: 

(a) To collect from persons in the Trade all data, reports, and 

statistics when and as required by the President and/ or the Administrator and/or their agent or agents. Such information shall be 

confidential. Each member shall send his data to a n~utral agency 

designated by the Code Authority. This neutral agency shall assemble all such data and present it to the Code Authority without 

the names of the members of the Trade submitting such data. This 

data with names shall be available to the Administrator, if required 

bv him. Reports submitted by the Code Authority to the President 

and/or the Administrator and/ or his or their agent or agents shall 

be in the form prescribed and/or a:pproved by him. Nothing in this 

paragraph shall be construed as limiting the powers conferred on 

the President and/ or the Administrator by Title I of the Aot. 

(b) In addition to information required to be submitted to the 

Code Authority; there shall be furnished to Government agencies 

such statistical information as the Administrator may deem necessary for the purpose recited in Section 3 (a) of the National 

Industrial Recovery Act. 

( c) To represent the Trade in conferring with the President or 

his agents with respect to the administration of this Code and in 

respect of the Act and any regulations issued thereunder. 

( d) To arrange for a Regional Committee in each territorial area 

to assist the Code Authority in administering the code. Each such 

Regional Committee shall consist of not more than three (3) members of the trade in such area, elected by the members of the trade in 

such area. 

(e) To appoint such agents as it may deem necessary to assist in 

administering this code. 

( f) To hear and investigate complaints and attempt to adjust 

the same in accordance with law. 
5 

(g) To study the trade-practice provisions of Article VI and the 

operation thereof, and make such recommendation from time to time 

to the Administrator as it deems desirable for modification of or 

addition thereto, which, upon the approval of the President, after 

such hearing as he may prescribe, shall become a part of this Code 

and have full force and effect as provisions hereof. 

(h) To make rules and regulations necessary for the administration of this Code, subject to the approval of the Administrator. 

( i) To report to the Administrator on behal:f of the trade on the 

subject of imported articles competing with products distributed 

by the trade under provisions of Section 3 (a) of the Act. 

ARTICLE VI-UNFAIR COMPETITION 

The following practices are hereby declared to be unfair methods 

of competition within the meaning of the Act: 

SECTION 1. Sales below the individual's cost. Cost is to be determined by a standard cost-accounting system to be set up by the Code 

Authority and subject to the approval of the Administrator. It is 

expressly understood that this shall not apply to items on which the 

published or suggested prices of manufacturers do not provide a 

margin sufficient to cover the individual's cost as determined by the 

above-mentioned standard cost-accounting system. 

SEc. 2. Where in any particular territory, members of the Trade 

desire to file ~rice lists with such agency as may be approved by the 

Code Authority, it is a violation of the Code for such members ·to 

sell below their individually filed schedules covering prices, terms, 

and conditions. Such schedules are to be subject to change at any 

time by filing a new schedule, which shall be effective five · (5) days 

after filing. 

SEc. 3. The payment or allowance of secret rebates, refunds, discounts, commissions, or other special considerations or allowances, including donations, gifts, or premiums of any nature whatsoever, to 

any firm or individual. 

SEc. 4. The issuance of false invoices or other documents covering 

sales in which the prices, terms, discounts, allowances, or other facts 

relating to the transaction are in any manner falsely stated. 

SEc. 5. Discrimination in prices between purchasers of the same 

class under similar conditions except for differences in the grade, 

quality, or quantity purchased. 

SEc. 6. Delivering merchandise which fails to conform exactly to 

the samples or specifications on which prices are quoted. 

SEc. 7. Agreeing to conditions or terms of sale, or making promises of any nature which manifestly cannot be fulfilled. 

SEc. 8. Accepting orders for future delivery subject to cancellation. 

SEc. 9. Inducing or attempting to induce the cancellation of orders 

or the breach of contracts existing between competitors and their 

customers. 

SEc. 10. Misrepresentation of facts about a competitor or his product. 

SEc. 11. Quoting a total price on any schedule of industrial supplies and machinery which does not show unit prices and making any 

addition or deduction on any other basis than the unit price shown. 
6 

SEc. 12. It is an uneconomical and an unfair practice for distributors to ship an,y goods on consignment, except products of manufacturers whose general plan of distribution is by consignment and not 

by sale for resale. 

ARTICLE VII-ScoPE OF CoDE 

In the absence of any contrary provision herein concerning such 

trade practice, each member of the trade shall in dealing with a 

product manufactured by a member of an industry operating under 

another Code of Fair Competition, conduct such dealing 1n conformity with any pertinent trade-practice provisions in such other 

Code. 

ARTICLE VIII-GENERAL 

: SECTION 1. Employees shall have the right to organize and bargain 

collectively through representatives of their own choosing and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organizat10n or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection; ' 

SEc. 2. No employee and no one seeking employment shall be required as a condition of employment to join any company union or to 

refrain from joining, organizing, or assisting a labor organization 

of his own choosing; and 

SEC. 3. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SEo. 4. This Code and all the provisions thereof are expressly 

made subject to the right of the President in accordance with the 

provision of subsection (b) of Section 10 0£ the National Industrial 

Recovery Act, from time to time to cancel or modify any order 

approval, license, rule, or regulation issued under Title I of said 

Act, and specifically, but without limitation, to the right of the President to cancel or modify his approval of this Code or any conditions 

imposed by him upon his approval thereof. 

SEC. 5. Within each State, members of the trade shall comply with 

nny laws of such State imposing more stringent requirements regulating the age of employees, wages, hours of work, or health, fire, or 

general working conditions, than under this Code. 

SEc. 6. If any employer in this trade is also an employer in any 

other trade or industry the provisions of this Code shall apply and 

affect only that part of the business of such employer which is a 

part of the trade covered by this Code. 

SEo. 7. Where the costs of executing contracts entered into this 

trade are increased as a result of the enactment of the National Industrial Recovery Act and/or by the provisions of this Code, or 

wher e any contract entered rnto by an empolyer subject to this Code, 

is inconsist ent with the provisions thereof, it is equitable and promotive o:f the purposes of the Act that appropriate adjustments of 

such contracts be arrived at by arbitral proceedings or otherwise, and 

the Code Authority is constituted an agency to assist, with the consent of the buyer in effecting such adjustments. Further, that where 
1 

the performance of orders accepted prior to the effective date of this 

Code is delayed or prolonged as a result of the operation of provisions 

of this Code, appropria.te additional time should be allowed for the 

completion o:f such orders. 

SEc. 8. Such of the provisions of this Code as are not required to 

be included therein by the National Industrial Recovery Act may, 

with the approval of the President, be modified or eliminated as 

changes in the circumstances or experience may indicate. It is contemplated that :from time to time supplementary provisions to this 

Co.de or additional codes will be submitted for the approval of the 

J:lresident to prevent unfair competition in price and other unfair 

and destructive competitive practices, and to effectuate the other 

purposes and policies of Title I of the National Industrial Recovery 

Act consistent with the provisions thereof. 

SEc. 9. Prior to December 31, 1933, no member of the trade shall 

increase the sale price of his goods sold after the effective date 

hereof over the price on July 1, 1933, by more than is made necessary 

by actual increases in manufacturing, distribution, and material 

costs, or by taxes or other costs resulting :from action taken pursuant 

to the Agricultural Adjustment Act and/ or this Code since July 1, 

1933, and in setting such price increases :full weight. shall be given 

to probable increases in sales volume. In case a member of the trade 

on July 1, 1933, was selling his product at less than actual cost, 

he may take his cost price on that date as the base for such increase 

in selling price as is permitted by this section. 

SEc. 10. No provision in this Code shall be interpreted or applied 

in such manner as to-

!

aj Promote monopolies or monopolistic practices; 

b Permit or encourage unfair competition; 

c Eliminate or oppress small enterprises ; or 

d) Discriminate against small enterprises. 

ARTICLE IX 

This Code shall be in effect beginning on the tenth day after its 

approval by the President and shall be binding upon all persons 

engaged in the trade. 

0 


' ... ·-•. 

UNIVERSITY OF FLOR IDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II IIIIII Ill 111111111 1111 1111 1 

3 1262 08584 2200 

"