Registry No. 1114-11 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR CO,MPETITION 

FOR THE 

HARDWARE AND SUPPLY 

MERCHANTS INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

WE DO OUR PART 

The Code for the Hardware and Supply Merchants Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - Price 5 cents 

v 
SUBMITTED BY 

NATIONAL HARDWARE AND SUPPLY ASSOCIATION 

(II) 
CODE OF FAIR COMPETITION 

SUBMITTED BY NATIONAL HARDWARE & SUPPLY ASSOCIATION 

Application to the President of the United States for a Code of 

Fair Competition for the Hardware and Supply Merchants, under 

the provisions of Section # 3, Title # 1 of the Act entitled "An 

Act to Encourage National Industry Recovery, to Foster Fair Competition and to Provide for the Construction of Certain Useful 

Public Works for Several Purposes." 

To effectuate the policy of Title 1 of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Hardware and Supply Merchants. 

I. LABOR CoDE 

. 1. Collective Bargarining.-In conformity with the prov1swns of 

Section 7a of the :National Industrial Recovery Act, the attitude of 

these :Nierchants with respect to the labor of employees shall be as 

follows: 

(a) That 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-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

(b) That 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 choosing. 

(c) That employers shall comply with the maximum hours of 

labor, minimum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

2. Child labor.-On and after the effective date of this Code no 

person under the age of sixteen years shall be employed, except that 

persons between fourteen and sixteen may be employed for not to 

exceed three hours per day, and those hours between 7 a.m. and 

7 p.m., in such work as will not interfere with hours of day school. 

3. Mawiffnwm hours.-(a) On and after the effective date of this 

Code no individual or organization of this class shall work any employee (except executives whose salaries are not less than $30.00 per 

week, and except outside salesmen and except maintenance and outside delivery employees, which maintenance and outside delivery 

employees may be employed forty-eight hours weekly or more, if 

paid time and one third for all hours over forty-eight hours weekly) 

for more than forty-four ( 44) hours per week, excepting at Christmas, inventory, and other peak periods employees may work forty9464--33 (1) 
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eight ( 48) hours per week for a maximum of not to exceed three 

weeks in each six months. 

It is understood and agreed if any other group of merchants (except food merchants who have been granted 48 hours weekly) are 

granted hours in excess of these stated above that these same hours 

will automatically apply to the merchants coming under this Code. 

(b) On and after the effective date of this Code no individual or 

organization of this class shall reduce the hours of any store or serv· 

ice operation to below fifty-two (52) hours in any one (1) week, unless such hours were less than fifty-two (52) hours per week before 

July 1, 1933, and in the latter case not to reduce such hours at all. 

(c) The maximum hours fixed in paragraph 3 (a) shall not apply 

to employees in towns of less than 10,000 population (when uch 

towns are not part of a larger trade area), in which cases forty -eight 

( 48) hours weekly for alr employees is permitted. 

4. llfinimwm wage.-On and after the effective date of this Code 

Merchants shall establish minimum weekly rates of wages for a work 

week specified in Section 3 (a) as follows: 

(a) Within cities of over 500,000 population (by reference to the 

1930 Federal census) or in the immediate trade area of such cities 

at the rate of $14.00 per week. 

(b) Within cities from 100,000 to 500,000 population (by reference 

to the 1930 Federal census), or in the immediate trade area of such 

cities at the rate of $13.00 per week. 

(c) Within villages, towns, or cities with a population of 10,000 

to 100,000 (by reference to the 1930 Federal census), unless they are 

included in a trade area as defined by clause (a) or (b), at the rate 

of $12.00 per week. 

(b) 'The minimum wages that shall be paid by employers to any of 

their employees shall be at the rate of $1.00 per week less in the 

Southern section of the trade then the rates specified in paragraph 

(a), (b), and (c) of Section (4). 

The South is defined as the following states-Virginia, 'Vest Virginia, North Carolina~ South Carolina, Georgia, Florida, Kentucky, 

Maryland, District ot Columbia, Tennessee, Alabama, Mississippi, 

Arkansas, Louisiana, Oklahoma, Texa . (c) In the entire United States, in villages, towns, and cities under 

10,000 population (which are not a part of a larger trade area) to 

increase all wages but not less than 20% provided that this shall not 

require wages in excess of at the rate of $11.00 per week nor permit in 

cities or towns of from 2,500 to 10,000 (which are not a part of a 

larger trade area) wages less than at the rate of $10.00 per we k. 

Except that on and after the effective date of this Code, junior 

employees between the ages of sixteen and eighteen years, inclu ive 

may be paid at the rate of $2.00 less for a week work (as provided 

in ection 3 (a) ) for the first twelve months of their emplo m nt and 

at the rate of $1.00 less for the second twelv month of their emplo. · ment and also except that apprentice employees more than ight en 

years of age may be paid at the rate of $1.00 less for a work ' eek for 

the first twelve months of their employment provided that the minimum compensation to either junior or apprentice employe s hall 

not be less than at the rate of $10.00 per we k. 

5. Not to reduce the compensation for employment now in exc s 

of the minimum wages hereby agreed to (notwithstanding that the 
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hours worked in such employment may be hereby reduced) and to 

increase the pay for such employment by an equitable readjustment 

of all pay schedules. 

6. Not to use an subterfuge to frustrate the spirit and intent of 

this Code, which is, among other things, to increase employment by a 

universal covenant, to remove obstructions to commerce, and to 

shorten hours and to raise wages for the shorter week to a living 

basis. 

7. Not to increase the price of any merchandise sold after the date 

he reo± o er the price on July 1, 1933, by more than is made neces ary 

by the actual increa es in production, operatino·, replacement, or 

invoice costs of merchandise, or by taxes or other costs resulting from 

action taken pursuant to the A~Yricultural Adjustment Act, since 

July 1, 1933, and, in setting uch price increase to give full weight 

to probable increases in sales volume and to refrain from taking 

profiteering a lYantage of the consuming public. 

8. 'Vhere co ts of executing contracts entered into before June 16, 

1933, in this trade to pur hase goods at fixed prices for delivery 

during the period this Code shall be in effect are increased by the 

application of the provisions of th~ National Indu trial Recovery 

Act, and it is deemed equitable and promotive of the purpo e of the 

Act that appropriate adjustment of such contracts to reflect such 

increased costs be arrived at by arbitral proceeding or otherwise. 

9. VnfaiT Omnpetition.- On and, after the effective date of this 

Code- ( a) No individual or organization selling goods at retail shall sell 

or offer for sale any merchandise at less than the net invoice delivered cost or current market delivered cost, whichever is lower plus 

10% to insure that labor costs shall be at least partially covered. 

(b) Nothing in the preceding paragraph, however, shall be interpreted to prevent bona fide seasonal clearances of merchandise so 

adverti ed or plainly marked or of highly perishable or damaged 

goods so advertised or plainly marked nor shall any individual or 

retail organization for the purpose of a bona fide discontinuance of 

the handling of any line when so advertised or plainly marked be 

estopped from selling said merchandise at less than net invoice delivered cost plus 10% to insure that labar cots shall be partially 

covered. 

(c) Advertising (written, printed, radio, or display), which · misrepresents merchandi e credit term , values, policies, or services; or 

selling method , which tend to mislead the con umer, shall not be 

made by any individual or organization selling at retail. 

(d) Organizations or individuals selling goods at retail shall be 

free to advertise truthfully their own goods, policies, services and 

their own prices but reference to the goods, policies, services, or prices 

of competing retailers hall not be made. 

(e) No individual or organization selling good at retail shall 

make use of, participate in the use of, publish, or broadcast any 

statement ~hich lays claim to a policy or continuing practice of 

generally underselling competitors. 

(f) On and after the official publication date of this Code no 

individual tore, or organization selling good at retail hall buy 

or contract to buy convict- or prison-made products, nor hall they 

sell such goods after December 31, 1933. 
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(g) This Code recognizes that there are many practices which 

have grown up locally in the retail tra le whi h ar productive of 

unfair competition and which are not dealt with specifically in this 

Code, for example: 

a. Commercial bribery 

b. Predatory price cutting 

c. Unfair credit practices 

d. Free goods 

These and other unfair practices may be made the subject of local 

regulations not incon ist.ent with the provi ions of this Code to be 

prepared in each trading area by the Local Retail Trade Committee as provided in paragraph 10 (c). Such local regulations, upon 

approval by the Local Retail Trade Committee, shall be filed with 

the National Retail Trade Committee and, when approved by the 

Administrator. shall, for all purposes within the area for which 

adopted, have the same force and effect as this Code itself; and any 

practices deemed unfair under said regulations shall be deemed 

unfair under this Code. vVhen these and other unfair practices 

are found to be national in character they may be made the subject 

of national regulations to be prepared by the National Retail Trade 

Committee and such regulations upon being approved by the N ational Retail Trade Committee shall be filed with the Administrator 

and, when approved by him, shall have the same force and effect 

as this Code itself; and any practices deemed unfair under said 

regulation shall be deemed unfair under this Code. 

10. JJ;J etlwd of Distribution.-It is recognized that there is a laro-e 

class of hardware and supply merchants who are confronted with 

competition from the jobber, chain and syndicate stores, mail-order 

houses, department stores, building, mill and factory supply hou es, 

garage and automotive supply houses, and janitor supply houses. 

Such competitors are in the main privileged to buy at the lowest 

jobbers' cost. 

It is therefore within the scope of this Code that in order to meet 

such competition and to place the merchandise in the hands of the 

consuming public at the lowest possible price all har lware and 

supply merchants who are or may become able to order in sufficient 

quantities shall be entitled to purchase their requirements from the 

manufacturer at the lowest prices paid J?y the jobber. 

A .. Hardware distributing costs of the merchants shall be based 

as follows: 

~· Manufacturer's prices to the jobbers at the lowest eli tributing 

pnce . . 2. Manufacturer's prices to the hardware and supply merchants 

at the lowest distributing price. 

3. Price to the retail dealers by the jobber or manufactur r at 

a fair mark-up over distributing prices. 

In regard to the above it is meant that the di tribution . hnll not 

handicap the hardware and upply merchant from en eavorino- to 

rneet the ompetition as offered by jobbers chain and yn 1icate t res, 

mail order hous s, department tore , buildino-, mill an l fa tory upply hou e , garage and automotive supply houses and janitor supply 

hou es. 
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11. Ad11~inist1·ation.- (a) To effectuate further the policies of the 

Act, a National Retail Trade Committee i hereby de ignated to cooperate with the Administrator as a planning and Fair Practice 

ao·ency for the retail trade. This Committee shall consist of two r~presentatives of each National organization subscribing now or 

later to this Code, elected by a fair method of selection, to be approved by the Administrator, and three members without vote appointed by the President of the United States. Such agency shall 

from time to time present to the Administrator recommendations 

based on conditions in their trade as they may develop from time to 

time which will tend to effectuate the operation of the provisions 

of this Code and the policy of the National Industrial Recovery Act. 

(b) Such agency is also set up to cooperate with the Admini trator 

in making investigations as to the functioning and observance of any 

provisions of this Code, at its own instance or on complaint by 

any person affected, and to report the same to the Administrator. 

(c) For each local trading area, as defined by the 1930 F:ederal 

census, and for each such other trading district as cannot be included 

in a trading area thus defined, there shall be set up a Local Retail 

Trade Committee whose member$hip shall include not more than 

two local representatives of each national organization represented 

on the National Retail Trade Committee and not more than two rep· 

resentatives of each such other division of retailing as may be important locally, all such members to be elected by a fair method of 

selection. The membership of all Local Retail Trade Committees 

shall be certified to and subject to approval by the National Retail 

Trade Committee, and shall report their regulations to it. It shall 

be the duty and responsibility of such Local Retail Trade Committee to draft such regulations not inconsistent with the provisions 

of this Code as may be necessary to make the provisions of this Code 

applicable to the distribution of all merchandise at retail within 

each respective district, but the essentials set forth in this National 

Retail Code shall be the minimum to be observed in each locality. 

The regulations of each such Local Retail Trade Committee shall be 

drafted and administered without discrimination against any indi· 

vidual retailer or class of retailers so that the spirit of fair and 

equitable treatment may prevail. Appeal from their decisions may 

be made to the National Retail Trade Committee. 

(d) This Code and all the provisions thereof are expressly made 

subject to the right of the President in accordance with the provisions of Clause ( 10) (b) of the National Industrial Recovery Act, 

from time to time to cancel or modify any order, approval, licen e 

rule, or regulation, issued under Title I of said Act, and specifically 

to the right of the President to cancel or modify his approval of this 

Code or any condition imposed by him upon his approval thereof. 

(e) Such of the pro vi ions of this Code as are not required to b~ included therein by the National In<lu trial Recovery Act may, 

w1th the ::tpproval of the President, be modified or eliminated as 

changes in the circumstances or experience may indicate. It i con- templated that from time to time supplementary provi ions to thi 

Code or additional Codes shall be submitted for the approval of 

the President to prevent unfair competition in price and other 

unfair and destructive competition practices and to effectuate the 
lllllll ll~lil i~lfl~llil flj l filii IIi 1)1~1 ~ i~lillllllllll 6 3 1262 08856 0783 

other purposes and policies of Title I of the National Industrial 

Recovery Act consistent with the provisions thereof. 

(f) It is mutually agreed that if any provision of this Code is 

modified without the unanimous consent of the National Retail 

Associations subscribing hereto, then and in that event the entire 

provisions of this Code may be reopened and a hearing shall be 

granted within thirty (30) days to any or all of the Associations 

subscribing hereto. 

12. Ge11eral Statutory Provisions.-Nothing in the restraints imposed by this Code is of a discriminatory nature. All restraints proposed in this Code are to protect consumers, competitors, employees, 

and others and are in the furtherance of the public interest. 

No provisions will stifle the initiative of any business conforming 

to those Fair Competition Practices. 

The Associations representing this code imposed no inequitable restrictions on admission to membership in their organization, are 

truly representative of the Retail Dry Goods, Department, Specialty Shop, Mail Order, Men's Clothing and furnishings, Furniture and Home Furnishings, l-Iard ware and Shoe Store Trades. 

The Code which they offer is not designed to promote monopolies or 

to eliminate or oppress small enterprises and will not operate to discriminate against them. 

It is our conviction that this Code will tend to effectuate the 

policy of Title I of the National Industrial Recovery Act. 

13. Effective D(J)te.-The effective date of this Code will be one 

week after its approval by the President. 

NATIONAL HARDWARE AND SUPPLY AssoCIATION. 

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