Approved Code No. 201-Supplernent No. 13 Registry 1657-01 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

ATHLETIC GOODS 

DISTRIBUTING TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON JULY 17. 1934 

WE DO OUR PART 

\ I 

I I 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASIDNGTON: 1934 

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Approved Code No. 201-Supplement No. 13 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

ATHLETIC GOODS DISTRIBUTING TRADE • 

As Approved on July 17, 1934 

ORDER 

SUPPLEMENTARY CoDE OF FAm CoMPETITION FOR THE ATHLETIC GooDs 

DISTRIBUTING 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 SuJ?plemental Code of Fair Competition for the Athletic Goods Distnbuting 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 Supplemental 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, 

p·ursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise 3. do hereby incorporate by reference said 

annexed report and do nnd 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; provided, however, that the provisions of Sections 6 and 

11 o:f Article IV are approved for a period of ninety (90) days 

onlyhsubject to further order at that time as a result of study made 

by t e Standardization Committee (provided for in Paragraph g, 

Section 2, Article III) ; provided further, that Section 15 of Article 

IV be and it is hereby stayed pending further order by the 

Administrator. 

HuGH S. JoHNsoN, 

Administrator for Industrial Recovery. 

Approval recommended : 

RoBERT L. HousTON 

Division Administrator. 

WASHINGTON, D.C., 

J u'Vy 17, 1934,. 

74344°----829-87----34 (1) 
REPORT TO Tl-IE PRESIDENT 

'Phe PRESIDENT, 

The White H OU!Se. 

Srn: This is a report of the l-Iearing on the Supplemental Code of 

Fair Competition of the Athletic Goods Distributing Trade, conducted in Room 2062, Department of Commerce Building on May 

28, 1934. The Supplemental Code, which is attached, was presented 

by duly qualified and authorized representatives of the Trade, com- plying with the statutory requirements. 

THE TRADE 

According to the census of vVholesale Distribution for the year 

1929, there were 283 establishments engaged in the distribution of 

sporting goods with annual net sales of $74:,246,889, and employing 

4-,031 persons. However, this figure covers all lines of sporting goods 

and no further breakdown is available which cover only the distribution of Athletic Goods, as defined in this Supplemental Code. 

OTHER PROVISIONS OF THE CODE 

The provisions containing supplemental definitions are considered 

inclusive and accurate. 

The Administrative provisions supplementing the General Code 

establish a Divisional Code Authority which is fairly and adequately 

representati\ e of all the different elements in the Trade. 

The Trade Practice supplemental provisions are designed to cure 

innumerable evils existing in the Trade today, and are not considered 

in any way objectionable. 

FINDINGS 

The Deputy Administrator in his final report to me on said Supplemental 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 organization of industry for the purpo. e of cooperative action among trade 

groups, by inducing and maintaining united action of labor and 

management under adequate goYernmental sanction and supervision, 

by eliminating unfair competitive practices, by promoting the fullest 

possible use of the pre ent productive capacity of industries, by avoiding undue restriction of production (except as may bv temporarily 

(2 ) 
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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 it 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 ther·eof; 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, 

JULY 17, 1934. 

J.IUGH S. JOHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE ATHLETIC GOODS DISTRIBUTING 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 Athletic Goods Distributing Trade pursuant 

to Article VI, Section 1 (c) of the General Code of Fair Competition 

for the Wholesaling or Distributing Trade, approved by the President of the United States on January 12, 1934. All provisions of 

the said General Code which are not in conflict with the provisions of 

the Supplemental Code are h-ereby specifically incorporated by reference in this Supplemental Code and made part hereof. Such provisions of the General Code together with the provisions of this 

Supplemental Code are the standards of fair competition for and 

are binding upon every m·ember of said Athletic Goods Distributing 

Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTINO ARTICLE II OF THE GENERAL CODE 

SEcTION 1. Wholesa,ler or Distributo1·.-For the purpose of this 

Supplemental Code the term "\'Vholesaler" or "Distributor", as 

used herein, is defined to mean any individual, partnership, association, corporation, or other form of enterprise, or a definitely organized division thereof definitely organized to render, and rendering a .general distribution service, which buys and maintains at his 

or its place of business a stock of athletic goods; and which through 

salesmen, advertising, and/or sales promotion devices, sells to retailers andjor to schools, colleges, clubs, teams, institutional, commercial, and/ or industrial users. 

SECTION 2. The term" member of the Trade", as used herein, shall 

n1ean and include any wholesaler or distributor of athletic ·goods. 

SECTION 3. M erchandise.-The term "Athletic Goods ", as used 

herein, includes all the balls, implements, and equipment used in any 

or all of the athletic games or sports enumerated below: 

(a) Golf. 

(b) Tennis, court tennis, table and paddle tennis, badminton, 

racquets, squash racquets, squash tennis, handball. 

(c) Football, basket ball, soccer, rugby football, volle} ball, water 

polo, and all other games generally known as athletic games or 

contests. 

(d) Baseball, including all variations thereof, played with a hard 

or soft ball and bat. 

(4) 
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(e) La Crosse. 

(f) Polo and hockey, including all variations thereof. 

(g) Winter-sports equipment and all variations thereof, including 

f::kis, snowshoes, and all other variations thereof. 

(h) Track and field Athletics. 

(i) Boxing and wrestling. 

( j) Archery. 

( k) Cricket. 

The term "Athletic Goods'' also includes gymnasium and playground equipment, uniforms and other similar athletic wear manufactured especially for athletic purposes, and felt and/or chenille 

emblems, letters and pennants, and megaphones, and similar prodducts when sold in connection with the merchandise enumerated 

above in this Section. 

SECTION 4. The term "Divisional Code Authority" as used herein 

shall mean the Divisional Code Authority for the Athletic Goods 

Distributing 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 vVholesaling or Distributing 

Trade. 

SECTION 6. The term " consignment ", as used herein is defined to 

mean the delivery by a distributor to any person, agent, purchaser, 

or otherwise under any agreement or understanding, expressed or 

implied pursuant to which the seller retains any lien upon or title 

to or interest in the goods until sold by the consignee. 

ARTICLE III-AmvnNISTRATION 

SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 

SECTION 1. Divisional Oocle Authority.-(a) There shall be 

created a Divisional Code Authority to cooperate with the Administrator in the administration of the provisions of this Supplemental Code. 

(b) Such Divisional Code Authority shall be composed of seven 

(7) members, five ( 5) of whom shall be members of the National 

Sporting Goods Distributors Association and selected by the Board 

of Directors thereof, and two (2) members who shall be selected by 

a plan to be approved by the Administrator to represent those engaged in the Athletic Goods Distributing Trade who are not members of the National Sporting Goods Distributors Association. 

(c) The t erms of office of members of the Divisional Code 

Authority and the method of electing their successors, whether for 

full new terms or f or unexpired terms, shall be established in the 

by-laws of the Divisional Code Authority, subject to the approval 

of the Administrator. 

SECTION 2. Powe1·s ancl Duties.-The Divisional Code Authority 

shall have the following powers in addition to those provided in the 

General Code, subject to the rules and regulations issued by the 

Administrator. 

(a) To select officers and agents and to assign to them such duties 

as it may consider advisable. 
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(b) To adopt By-Laws and rules and regulations for its procedure. 

(c) To utilize such trade associations an~ other agencies as it 

deems necessary and proper to assist it in carrying out any of its 

activities, provided, however, that nothing contained herein shall 

in any way relieve the Divisional Code Authority of any of its responsibilities under this Supplemental Code, and that such trade 

associations and agencies shall at all times be subject to, and comply 

with the provisions hereof. 

(d) It shall be the duty of the Divisional Code Authority to a.ppoint a Trade Practice Committee which shall meet with the Trade 

Practice Committees appointed under such other Codes as may be 

related to the Trade for the purpose of formulating Fair Trade 

Practices to govern the relationships between production and distribution employers under this Supplemental Code and under such 

others to the end that such Fair Trade Practices may be proposed to 

the Administrator as amendments to this Supplemental Code and 

such other Codes. 

(e) To obtain from members of the Trade such information and 

reports as are required for the administration of the Supplemental 

Code. No such individual report shall be disclosed to any other 

member of the Trade, including members of the Divisional Code 

Authority, or any other party except to such other governmental 

agencies as may be directed by the :Administrator. No such data 

or information shall be published, except in combination with similar 

data, and in such manner as to avoid the disclosure of confidential 

information. 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 obligations to furnish reports to any government agency. 

(f) To recommend to the Admini trator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the Trade in their relations with each other 

or with other trades, measures for industrial planning, and stabilization of employment; and including n1odifications of this Supplen1ental Code which shall become effective as part hereof upon approval by the Administrator after such notice and hearing as he 

may specify. 

(g) In order to assist in making effective the reports from the 

Trade in eliminating unfair competition, the Divisional Code Authority within one month after the effective date of the Supplemental Code shall appoint a Committee . o constituted as to give 

producer, consumer and governmental representation, to make a 

study with a view to the e tablishment of classification of standard 

of quality of products of the Trade, wherever uch standards are 

deen1ed feasible; the finding. and recommendations of this Comn1ittee shall within one year be submitted to the Aclmini ti·ator and 

after such hearings and invest]gations as he may designate and upon 

approval by him, shall be made a part of this Supplemental Code 

and be binding upon every member. 
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(h) 1. It being found necessary in order to support the administration of this Supplentental Code and to maintain the standards 

of fair competition established hereunder and to effectuate the policy 

of the Act, the Divisional Code Authority is authorized : 

a. To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to m.eet such obligations 

out of funds which may be raised as hereinafter provided and 

which shall be held in trust for the purposes of the Supplemental Code ; 

b. To submit to the Administrator for his approval, subject 

to such notice and OJ?portunity to be heard as he may deem nec~sary (1) an item1zed budget of its estimated expenses, and 

(2) an equitable basis upon which the funds necessary to support such budget shall be contributed by member,s of the Trade; 

c. After such budget and basis of contribution have been 

approved by the administrator, to determine and obtain equitable contribution as above set .forth b.Y all members of the 

Trade, and to that end, if necessary, to Institute legal proceedings therefor in its own name. 

2. Each member of the Trade shall pay his or its equitable contribution to the expenses of the maintenance of the Divisional Code 

Authority, determined as hereinabove provided, and subject to rules 

and regulations pertaining thereto issued by the Administrator. 

Only members of the Trade complying with the Supplemental Code 

and the General Code and contributing to the expenses of their 

administration as hereinabove provided, shall be entitled to participate in the selection of members of the Divisional Code Authority 

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. 

3. The Divisional Code Authority shall neither incur nor pay any 

obligation in excess of the a1nount thereof as estimated in its approved budget, except upon approval of the Administrator; and no 

subsequent budget shall contain any deficiency item for expenditures 

in excess of prior budget estimates except those which the Administrator shall have so approved. 

SECTION 3. Liability of the Divisional Oode Authority.-Nothing 

contained in this Supplemental Code or in any other Code shall 

constitute the members of the Divisional Code Authority partners 

for any purposco; nor shall any member 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, nor shall any men'lber of the Divisional Code Authority, 

exercising reasonable diligence in the conduct of his dutie hereun ler, be liable to anyone for any action or omission of an act under this 

Supplemental Code, except for his own misfeasance or nonfeasance. 

SECTION 4. Approval or Disapp?'O'cal by the Administ1·ator.-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 1nay require that 

such action be suspended to afford an opportunity for investigation 

of the merit,s of such action and .further consideration by such Divisional Code Authority or agency pending final action which shall 
8 

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. 

SECTION 5. In order that the Divisional Code Authority shall at 

all times be truly representative of the Trade, and in other respects 

comply with the provisions of the Act, the Administrator may prescribe such hearings as he may deem prol?er; and thereafter if he 

shall find that the Divisional Code Authonty is not truly representative or does not in other respects comply with the provisions of the 

Act, may require an appropriate modification o£ the Divisional Code 

Authority. 

ARTICLE IV-TRaDE PRACTICES 

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 

SECTION 1. No member of the Trade shall pay any money or make 

any gifts to athletic organizations, leagues, associations, athletes, 

winners of athletic competitions, or persons prominent in any of the 

various lines of sport to induce such athletic organizations, leagues, 

associations, athletes, winners of athletic competitions, or prominent 

persons to use, recorrunend or adopt as " official " the athletic goods 

or equipment of such 1nembB-rs of the Trade and then advertise that 

such athletic organization, leagues, association, athletes, winners, 

or persons, use, recorru11end, or have adopted as "official" such athletic goods or equipment without disclosing that such organizations, 

leagues, associations, athletes, winners, or persons were the recipients 

of money or gifts from such member of the Trade. 

SECTION 2. No me1nber of the Trade shall lease, sell, or contract 

to sell, athletic goods or equipment, whether patented or unpatented, 

for use, consumption, or r esale within the United States or fix a price 

charged therefor, or discount from, or rebate upon such price, on the 

condition, agreement, or understanding that the lessee or purchaser 

thereof shall not use or deal in the athletic goods or equipment of a 

competitor or competitors of the lessor or seller where the effect o£ 

such lease, sale, or contract for sale, or such condition, agreement, or 

understanding may be to substantially lessen competition or tend to 

create a monopoly in any line of commerce. 

SECTION 3. No mmnber of the Trade shall either directly or indir ectly discrin1inn.te in price between different purchasers of commodities, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of 

comn1erce; provided, that nothing herein contained shall prevent 

discrimination in price between purchasers of the same class on 

account of differences in the grade, quality, or quantity of the commodity sold, or that makes only due allowances for differences in the 

cost o'f selling or tran portation, or discrimination in price in the 

same or different communities ma.de in good faith to meet competition; and provided further, that nothing herein contained shall prevent persons engaged in selling the products of this Trade in commerce from selecting their own customers in bona fide transactions 

and not in restraint of trade. SECTION 4. No member of the Trade shall u e on, or in any way 

in connection with the sale of, any of its athletic goods or equipment, 
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the name, nickname, or initials of any athlete or person prominent 

in any line of sport when a competitor has previously acquired from 

the said athlete or person, and with his approval, the exclusive right 

and good-will in and to said name, nickname, or initials for the use 

on the same line of goods, and where the effect of the use by the said 

member of the Trade of the said name, nickname, or initials is to 

deceive or tend to deceive the purchasing public as to the source or 

1nake of the said line of goods, and where the tendency is to injuriously affect the business of the competitor; provided, that nothing contained herein shall be construed to deprive any person of any 

right which may be enjoyed under any existing law. 

SECTION 5. No member of the Trade shall maliciously and/or 

knowingly induce or attempt to induce the breach of existing con- tracts between competitors and any athlete or person prominent in 

any line of sport relating to the use of said athlete's or person's name, 

nickname, or initials, or maliciously and/or knowingly interfere with 

or ~bstruct the performance of any such contractual duties or 

services. 

SECTION 6. No J\fember of the Trade shall stamp the name "official " on playground balls, footballs, soccer balls, basket balls or 

volley balls (of either inseam or outseam styles) which are not top 

grade, conventional type, or on speci~l playground balls, special 

footballs~ special soccer balls, SJ?ecial basket balls or special volley 

balls whiCh are inferior in quahty, inferior in workmanship or inferior in any other respect to the top grade, conventional type, of 

ball of such Member of the Trade. 1 

SECTION 7. No member of the Trade shall offer for sale as "seconds", as "defective", or as "of inferior quality" any merchandise, which is in fact not defective or inferior in some material 

respect. 

SECTION 8. No member of the T:rade shall sell baseballs, playground balls, footballs, soccer balls, basket balls, volley balls, and 

golf balls, unless the said balls are branded with a name or other 

mark of identification. 

SECTION 9. No member of the Trade shall guarantee any athletic 

goods except as to their freedom from defects affecting the quality, 

quantity, grade, or construction thereof, or replace for any other 

cause, any such product which has been used . • SECTION 10. No member of the Trade shall give trophies or other 

things of value for the adoption or use, of any merchandise by any 

team, club, association, league, or educational institution, excepting 

only professional baseball leagues operating in organized baseball. 

No member of the Trade shall make any donation of balls or money 

to professional baseball leagues in excess of a schedule of donations 

when such schedules shall be announced by the Divisional Code 

Authority and approved by the Administrator. 

SECTION 11. No member of the Trade shall stamp the names" Official" "Official Leaaue" "National League" or "American < ' 0 ' ' League ", on other than the n1anufacturer's finest quality baseballs, 

made of the best quality wool yarn containing at least 95% wool.1 

1 See paragraph 2 of order approving this Code. 
10 

SECTION 12. No member of the Trade shall sell merchandise on 

more favorable terms of credit than the following: 

(a/ On current orders, 30 days net, 2% ten days or 2% lOth 

proxnno. 

(b) On advance spring orders shipped N ov€mber 1st and spring 

samples whenever shipped, March 31st, dating, 2% if paid April 

lOth. 

(c) On ad vance fall orders shipped after June 1st, and fall samples 

whenever shipped. September 30th dating, 2% if paid October lOth. 

(d) On foreign or AXport business, credit terms are subject to the 

discretion of the seller. 

(e) The rate of discount allowed on prepayment of invoices, not 

to exceed 6% per annum. 

(f) Past due accounts shall be subject to the legal rate of interest 

provided for by the laws of the state governing the operation of the 

contract of sale. 

SECTION 13. The consignment method of sale is prohibited, except 

where the Divisional Code Authority may allow under circumstances 

to be defined by it. 

SECTION 14. Except as may be due to differences in cost, no member of the Trade shall quote and/or sell at lower prices on direct 

factory shipments, than on the same type, quality, quantity, and size 

of products for delivery from his stock. 

SECTION 15. No member of the Trade shall quote andjor sell at 

lower prices to federal, state, county, or municipal authorities or 

political subdivisions thereof, than those which are offered under 

substantiaJly like conditions, on the same type, quantity, quality and 

grade of merchandise to schools and colleges.1 

SECTION 16. No member of the Trade shall quote and/or sell at a 

combination price, two or more different items of merchandise without. showing the unit prices thereof. 

SECTION 17. No member of the Trade shall advertise in school 

publications, score boards, season schedules, and other mediums of 

similar character, except such mediums as hold a second-class mail 

:permit or have the approval of the Divisional Code Authority, subJect to appeal to the Administrator. 

SECTION 18. No member of the Trade shall increase the value of 

any merchandise sold by additional work thereon or by applying 

additional material thereto without making a reasonable additional charge for such additional work and/or additional material. 

SECTION 19. No member of the Trade shall furnish articles of 

merchandise to schools, dealers, clubs, for the purpose of samples 

without invoicing such merchandise to the prospective customer at 

his quoted prices and terms, subject to return within thirty (30) 

days for credit. In case where sizes are required as samples no more 

than one of the sa1ne article may be shipped. 

ARTICLE V-11oDIFICATION 

This Supplemental Code and all the provisions thereof are expressly made subject to the right of the President in accordance with 

1 See p:u-agmph 2 of order approving this Code. 
11 

the provisiOns of Sub-section (b) of Section 10 of the Act, from 

time to time to cancel or modify any order, approval, license, rule 

or regulation issued under Title I of the said Act. 

ARTICLE VI-EFFECTIVE DATE 

This Supplemental Code shall become effective on the lOth day 

after its approval by the Administrator . 

.Approved Code No. 201-Supplement No. 13. 

Registry No. 1657--0'1. 

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