Ap[)roved Code No. 201-Supplernent No. 12 Registry No. 1698- 1- 03 

NATIONAL RECO ERY ADl\HNIST ATION 

SUPPLEMENT ARY 

CODE OF FAIR COMPET TION 

F OR THE 

SCHOOL SUPPLIES 

AND EQUIPMENT TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON JULY 5, 1934 

WE DO OUR PART 

oUNITED STATES 

GOVER NMENT PRL"'l'TING OFFICE 

WASHINGTON: 1934 

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

V 
This publication is for sale by the Superintendent of Documents, Government 

Priuting Office, Wa bington, D.C., ancl by district office:s of tlie Bureau of 

ltoreign und D c::mestic Commei:te. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Boston, l\lass. : 1 01 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, 1\lich. : 801 First National Bank Building. 

Hou ton, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kan as City, Mo.: 1028 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

1\lemphL, Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 Enst Plume Street. 

Philaclel phia, Pa.: 422 Commercial Trust Building. 

Pitt burgh. 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.: 809 Federal Office Buildin~ 
Approved Code No. 201-Supplement No. 12 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

SCHOOL SUPPLIES AND EQUIPMENT TRADE 

As Approved on July 5, 1934 

ORDER 

SuPPLE:MENTARY ConE OF F AIR Col\IPETITION FOR THE ScHooL SUPPLIES 

AND EQUIPMENT 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 Supplemental Code of Fair Competition for the School Supplies and . 

Equipment 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: 

NOvV, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pur uant 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 Competitien be and it is hereby approved; provided, however, that the provisions of Article V, Section 

1 (a), insofar as they prescribe a waiting period between the filing 

with the Code Authority (i.e. actual receipt by the Code Authority) 

and the effective date of revised price lists or revised terms and 

conditions of sale be, and they are hereby stayed pending my further 

order; and provided, further, that the provisions of Section 2, 

Article V, are approved for a period of ninety (90) days only, 

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

operation of said pro':7isions. 

Approval recommendetl : 

R. L. 1-IousTo ... , 

HUGH s. JOHNSON' 

Adm,inistrator for Industrial R ecovery. 

Division 1-dminisfrator. 

,v ASHIKGT0N, D.C., 

July 5, 1934. 

7~1!)6 °-829-23-34-l (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

Srn: This is a report of the Hearing on the Supplemental Code 

of Fair Competition of the School Supplies and Equipment Distributing Trade, conducted in Room 127 of the vVillard Hotel, on 

April 19, 1934. The Supplemental Code, which is attached, was 

presented by duly qualified and authorized representatives of the 

Trade. 

THE TRADE 

Due to the considerable overlapping of this Trade in others accurate statistics are not available. According to data submitted hy the 

Trade, in 1933 there were approximately three hundred establishments with aggregate annual sales of $45,000,000. The Trade employed about fifteen thou~and people. In 1929 there were two hundred and seventy-five establishments employing twenty-seven thousand people with aggregate annual sales of $110,000,000. 

PROVISIONS OF THE CODE 

This Code contains no Supplemental Labor Provisions, the employees being subject to the wage and hour provisions of the Code of 

Fair Competition for the Wholesaling or Distributing Trade. 

The provisions containing supplemental definitions are considered 

inclusive and accurate. 

The administrative provisions establish a Divisional Code a~1thority which fairly represents all the different elements in the Trade. 

The Trade practices proposed are not considered to be objectionable. However, some controversy ha been raised in connection with 

the provisions covering price differentials. These provisions are designed to secure cooperation of the producer, "hich is neces ary to 

effe tuate their intent. These provisions have been subject to rigid 

analysis, and it is felt that the results give very adequate consumer 

protection. 

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 i well desjgned to promote the 

policies and purposes of Title I of the National Indu trial Recovery 

Act, including removal of ob tructions to the free flow of interstate 

and forei;n commerce which tend to diminish the amount thereof, 

and will provide for the general welfare by promoting the organiza-

(2) 
3 

tion of indu tr f or the purpo e of cooperative action among trade 

groups, by in lucing and mnintainina• united action of labor and 

rnanao-ement 1-inder adequate governmental sanction and superYi ion, 

by eliminating unfair competitiYe practices by promotino- the fullest 

po ible u e of the pre ent productive capacity of industrie by 

a voiding undue re~triction of production ( except as may be tern po- rarily r equired) by increasing the consumption of indu trial and 

agricultural products through increa ing purcha ino- power, b3 reducing and relieving unemployment, by impro,ing tandards of 

labor, and by otherwise r ehabilitating industry. 

(b) Said Trade normally employs not more than 50 000 employees 

and it is not clas ifi-ed bv me as a major indu try. ( c) The Supplemental Code as appro, ed complies in all r spects 

with the pertinent provi ions of said Title of aid Act includin~ without limitation Sub ection (a) of Section 3 Sub ection (a) or 

Section 7 and Subsection (b) of Section 10 thereof· and that the 

applicant association is a trade as ociation truly repre entative of 

the aforesaid Trade· and that aid association imposes no inequitable 

restrictions on admi sion to membership therein. 

(d) The SupiJlemental 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 enterpri es 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. 

Re pectfully, 

J ULY 5, 1934. 

H UGH s. JOHNSON, 

Adm,inistrator. 
SUPPLEMENTARY CODE OF F AIR COMPETITION FOR 

THE SCHOOL SUPPLIES AND EQUIPMENT TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I o:f the National Industrial 

Recovery Act, this Supplemental Code is established as a Code of 

Fair Competition for the School Supplies and Equipment Distributing Trade pursuant to Article VI, SBction 1 ( c) of the 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 this Supplemental Code are hereby incorporated by 

reference in this Supplemental Code and made a part hereof. Such 

provisions of the General Code, together with the supplementing 

provisions of this Code are the standards of fair competition for and 

are binding upon every member of said School Supplies and Distributing Trade. 

ARTICLE II-DEFINITIONS 

(SUPPLEMENTING .ARTICLE II OF THE GENERAL CODE) 

SECTION 1. Distributor or 1'V holesaler.-The term " Distributor or 

Wholesaler", as used herein, shall mean any individual, partnership, 

association, corporation, or other form of enterprise or definitely 

organized division thereof, set up to render and rendering a general 

distribution service which buys and maintains at his or its place of 

business a stock of school supplies and equipment, and which through 

salesmen, advertising and/or sales promotional devices, sells to institutional and/or commercial users and/ or incidentally to retailers, 

but which does not sell in significant amounts to ultimate consumers. 

SECTION 2. School Supplies {J/)1,d Equip1nent.-The t~rm "School 

Supplie~ and Equipment "-1 as used _herein, shall mea;11 _such supplies 

and equipment as are used by pupils, teachers, admmistrators, and 

general employees of Boards of Education in their respective 

capacities as uch. 

SECTION 3. Divisional Code Aidhority.-The term "Divisional 

Code Authority", as used herein, shall mean the Divisional Code 

Authority for the School Supplies and Equipment Distributing 

Trade, a Division of the Wholesaling or Distributing Trade. 

SECTION 4. General C ode.-The term " General Code ", as used 

herein, shall mean the Code of Fair Competition for the vVholesaling or Distributing Trade. - ECTION 5. The T1·ade.-The term " The Trade " as used herein 

shall mean the business in which wholesalers or distributors of schooi 

supplies and equipment are engaged. 

(4) 
5 

SEcTio~ G. 1',J ember of the Trad e.-The term " member of the 

Trade ' as u ed her in, shall mean any whole aler or distributor 

enga o-ed in th tra le. E Tio_T 7. A sociation .-The term ' s ociation" as uc:ed herein, 

bhall mean the X ational chcol Suppli s and Equipment Association. 

SECTIO~T . Blind B id.-The term 'Blind Bid as used h rein, 

shall mean an off er by a seller to meet or to better the price quoted 

in the lowest bid recei vecl for any pecific order or bill of goods or 

in any other case where bicls are reque ted. 

ARTICLE III-An~nxrsTRATION 

(SUPPLE~IENTING ARTICLE YI OF THE GEXERAL CODE) 

SECTION 1. The Divi ional Code Authority of the School Supplies 

and Equipment Distributing Division hall be compo ed of thirteen 

( 13) members. 

SEcTio 2. (a) The Executive Secretary of the Association shall 

be ex officio a member of the Divisional Code Authority. 

(b) The remaining twelve (12) members of the Divisional Code 

Authority hall be elected as follows: 

1. The Executive Committee of the Association shall nominate 

one candidate for each of the eight (8) Regional Districts into 

which the Association has divided the United States and which are 

set forth in detail in Schedule A of this Supplemental Code. 

2. The Administrator shall also nominate four candidates at 

large. These four candidates shall not be members of the 

Association. 

3. The Executive Committee shall send to every member of the 

Trade discoverable by diligent search ballots containing the names 

of these candidates. The ballots shall also contain blank spaces 

in which voters may write their personal choices. Each voter shall 

vote for one candidate from his Regional District and for four 

candidates at large. 

4. To each ballot shall be attached a statement of assent and compliance to this Supplemental Code, and to the General Code. 

5. Twenty (20) days after the mailing of these ballots the Executive Committee of the Association shall publicly count those votes 

which have been returned to it. Only those ballots shall be counted 

which have attached to them signed statements of assent and compliance. The candidate receiving the largest number of votes in 

each Regional District, and the four candidates at large receiving 

the large t number of votes shall be elected. No votes for candidates 

at large who are members of the Association shall be counted. 6. The Executive Committee shall certify to the Administrator 

the method of conducting the election and the result of the same. 

SECTION 3. The terms of office of members of the Divisional Code 

Authority and the method of electing their successors whether for 

full new terms or for unexpired terms shall be established in the 

bylaws of the Divisional Code Authority. 

SECTION 4. The Divisional Code Authority shall have the following duties and powers, in addition to those :prescribed in the Gen- eral Code, subject to such rules and regulat10ns as may be issued 

from time to time by the Administrator: 
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(a) To appvint 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 Lliis Supplemental Code and under such 

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

to the Admini~trator as amendments to this Supplemental Code 

and such other Codes. 

(b) To appoint a Regional Committee or agent in each of such 

regions as the Divisional Code Authority may establish with the 

approval of the Administrator to assist the Divisional Code Authority in administering this Supplemental Code and the General Code; 

provided, however, that nothing herein shall relieve the Divisional 

Code Authority of its responsibilities as such. ( c) To organize, elect officers, hire employees, appoint agents and 

perform such other acts as may be necessary for the proper administration of this Supplemental Code and the General Code. 

( d) To adopt by-laws and rules and regulations for its procedure. 

( e) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Divisional 

Code Authority of its duties or 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. 

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

reports as are required for the administration of this Supplemental 

Code. In addition to information required to be submitted to the 

General Code Authority and to the Divisional Code Authority mem- bers of the Trade subject to this Supplemental Code shall furnish 

such statistical information as the Admini trator may deem necessary for the purposes recited in Section 3 (a) of the Act, to such 

federal an<l state agencies as he may designate; provided that nothing in this Supplem~mtal Code shall relie e any member of the Trade 

of any existing obligations to furnish reports to any governmental 

agency. No individual report shall be disclosed to any other member 

of the Trade or itny other party except to such other governmental 

agencies as may be directed by the Administrator. 

(g) To appoint, within one month after the effective date of the 

Supplemental Code, a committee so constituted as to give producer, 

consumer, and governmental representation sati factory to the ~ dministrator, to make a study with a view to the establishment of 

classifications and standards of quality of staple products of the 

Trade, wherever such standards are deemed fea ible. The findings 

and recommendations of this committee shall be submitted to the 

Administrator, within one year, and after such hearings and investi- gations as he may designate, and upon appro, al b. him shall be 

made a part of this Supplemental Code and be binding upon every 

member. 

(h) To from time to time suggest modifications of and/or amend- ments to this Sur plemental Code and to a sent to such modifications 

and/or amendments and to the Supplemental Code in its final form 

as modified and/or amended. 
7 

SEOTio ... :r. 5 . .1. othinO' contained in this Supplemental Code shall 

constitute the members of the Divisional Cod 0 Authority partners 

for any purpose nor shall any members of the Divi ional Code 

Authority be liab e in any manner to anyone for any act of any 

other member, officer, agent or employee of the DiYisiona l Code 

Authority. or hall an member of the DiYisional ode uthor- ity, exercising rea onable dihgence in the conduct of his duties hereunder, be liable to an one for any action or omi sion to act under 

this Supplemental Code, except for his own willful mi feasance or 

nonfea ance. 

SEcTI .,_ T G. If the Administrator shall determine that any action 

of the Di i ional Code Authority or any agency thereof, may be 

unfair or unjust or contrary to the public interest, the admini trator 

may require that uch action be suspended to afford an opportunity 

for investigation of the merits of such action and for further con- sideration of such Divi ional Code Authority or agency, pending 

final action, which shall not be effective unle the Admini trator 

approves or unle s he shall fail to disapprove after thirty days' 

notice to him of intention to proceed with such action in its original 

or modified form. 

SEcTio 7. The Divisional Code Authority shall appoint one or 

more of its members to a com.mittee which shall constitute a coordinating committee between this trade and any other trade for 

which a supplemental code under the General Code has been approved, if, and when the Dfrisional Code Authority for said other 

trade shall appoint one or more members to the said committee. The Divisional Code Authority of this trade shall delegate to this 

co-ordinating committee, if and when establi heel, such of it powers 

as may be necessary to co-ordinate the administration of this Supplemental Code with the adn1inistration of such other upplemental 

code so as to provide for administration which shall be fair and 

equitable to each trade. 

SECTION 8. It being found necessary, in order to support the ad- ministration of this Supplemental Code and to maintain the stand- ur9-s of fair competition e tablished in this Supplemental Code and 

to effectuate the policy of the Act, the Divisional Code Authority is 

authorized, subject to the approval of the Administrator: 

(a) To incur such reasonable obligations as are neces ary and 

proper for the foregoing purposes and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

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

(b) To submit to the Administrator for his approval, subject to 

such notice and opportunity to be heard as he may deem nece sary, 

(1) an itemized budget of its estimated expenses for the foregoing 

purposes, and (2) an equitable basis upon which the fund nece ary 

to support such budget shall be contributed by members of the Trade; 

( c) After such budget and basis of contribution have been ap- pro-ved by the Adn1inistrator, to determine and secure equitable con- tributj on as above set forth by all such members of the Trade and 

to that end, if necessary, to.. institute legal proceedings therefor in 

its own name. 

( d) After the approval by the Administrator of the itemized 

budget of estimated expenses and equitable basis of contribution non-
8 

payment by any member of the Trade of an assessment levied by the 

Di ,,i ional Code Authority as an equitable share of the cost of Code 

Aclmini. tration shall constitute a violation of this Supplemental 

Code and of tLe General Code. 

SECTION 9. 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 Code and 

contributing to the expenses of its 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 Admjnistration. 

SECTION 10. The Divisional Code Authority shall neither incur 

nor pay any obligation in excess of the amount 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 11. (a) There is hereby crea,ted an Industrial Relations 

Committee to be composed of three (3) persons who shall be selected 

as follows: 

1. A representative of the employers to be appointed by the Divisional Code Authority. 

2. A representative of the employees to be nominated by the Labor 

Advisory Board of the National Recovery Administration and appointed by the Administrator. 

3. An impartial chairman to be selected by the two (2) members 

already appointed or in case they disagree, by the Administrator. 

(b) The members of this Committee shall hold office for six ( 6) 

months from the date of their appointments and re-appointments 

shall be made and vacancies shall be filled in the same manner as 

provided in paragraph (a) of this Section 11. 

(c) This Industrial Relations Committee shall have the duty of 

dealing with complaints and disputes relating to labor in accordance 

with rules and regulations issued by the Administrator. It shall 

have all powers necessary to facilitate the performance of said duty. 

ARTICLE IV-TRADE PRACTICES 

( SUPPLEl\IENTING ARTICLE VII OF THE GENERAL CODE) 

The f ollowing practices constitute unfair methods of competition 

:for the members of the Trade and are prohibited : 

SECTION 1. To make quotations or bids which do not state that 

they are made subject to conditions, terms of sale, trade practices, 

nnd differentials of this Supplemental Code. 

SECTION 2. To compute quantity discounts on any other basis than 

that of the quantities shipped and/or billed to a single buyer. 

SECTION 3. To ship or deliver products which do not conform to 

camples submitted when orders have been obtained on the basis of 

such samples or representations made prior to securing the orders. 
9 

SECTION 4. To make fictitious or blind bids or to attempt through 

connivance to ha, e all bid r jccted to the end that a more advantageous po ition may be nr d in new bidding. 

ECTro_ -. To submit bi l wh re quantities of the various products 

covered by the bi 1. are not specified by the purcha er. 

SECTION 6. To bi l in lump um f r a group of items without tating 

unit prices. In all comp titive bid , unit prices shall be stated for 

each item. 

The total of the extended price shall be the bid price, except that 

nothincr herein shall re truin a bidder from granting bona fide discounts for quantity and/or volume on whatever basis established and 

filed with the Divisional Code Authority, as provided in Section 1, 

Article V. 

SEcno ... 7. To offer or make any conce sion, payment, or allowance 

in the form of money or otherwise on any line of merchandise as a 

subterfuge or concession to influence a sale of any line of merchandise 

other than that on which such concession, payment or allowance is 

granted. 

SECTION 8. To employ subterfuge directly or indirectly to avoid or 

attempt to avoid the provisions of this Supplemental Code, or the 

General Code, or the purpose and intent of the National Industrial 

Recovery Act, which is to increase employment, provide better wages, 

promote fair competitive methods, better business conditions, and 

promote the public welfare. 

SECTION 9. To imitate trade marks, trade names, slogans or other 

marks of identification of competitors' products for the purposes of 

unduly hampering or embarrassing a competitor and/or for the 

purpose of deceivmg the prospective purchasers of such products; 

or to catalog a manufacturers product which is not sold by that 

member of the Trade. 

SECTION 10. To secure confidential information from competitors 

concerning their businesn by false or misleading statements or representations or by false impersonations o:f one in authority and the 

wrongful use thereof to unduly hinder or stifle the competition of 

such competitors. 

SECTION 11. To offer or give prizes, premiums, or gifts in connection with the sale of products as an inducement to buy such products 

when such prizes premiums or gifts are not offered to all customers 

o:f the same clw. s in the trade area. 

ARTICLE V - PERMISSIVE Th.ADE PRACTICES 

( SUPPLEl\IBNTING ARTICLE VIII OF THE GENERAL CODE) 

SECTION 1. (a) within fifteen ( 15) days after they are notified 

t o do so by the Divisional Code Authority, in accordance with the 

approval o:f the Administrator members of the Trade must file with 

it schedules of their sales prices on such of the lines which they 

sell as the Divisional Code Authority may :from time to time designate, including all terms, conditions, or allowances affecting the 

price at which any item is offered for sale to their customers. These 

schedules may be changed by filing with the Divisional Code Author-
10 

ity notice of .such changes five (5) days before such changes are to 

become effective. 1 

(b) No member of the Trade shall sell or off er to sell goods at 

prices other than those which he then has on file. 

( c) ~ o member of the Trade shall file a price or sell any item. 

for a price lower than the net invoice price plus incoming transportation costs to his warehouse, provided that; 

( 1) A member of the Trade may sell at a price less than the 

minimum provided above in order to meet the price of a competitor 

whose price does not violate this Section; provided that before making the sale he files by telegraph, effective immediately, the price 

at which he proposes to make such sale. 

(2) Bona fide sales for the purpose of closing out discontinued, 

obsolete, or distress merchandise may be made at such prices and 

upon such terms and conditions as may be necessary to effect their 

sale. Full details of such sales including the amount of such merchandise on hand and the date of its purchase must be reported to 

the Divisional Code Authority at least fifteen ( 15) days before the 

date of such sale. 

( d) All filed prices effective at any time shall be matters of public 

record and available for inspection by all interested parties. The 

Divisional Code Authority however may establish a reasonable 

charge for furnishing by mail copies of such filed prices to those 

requesting the same. 

( e) When manufacturers of products distributed by this Trade 

shall, through action of their respective Code Authorities with the 

approval of the Administrator, have established standard units as 

to grades, qualities, size, quantities, and counts in which standard 

unit fabricated goods shall be offered for sale, price schedules filed 

by members of the Trade shall be in the form of quotations on the 

standards units so established but without respect to the manufacturer's designated prices. 

(f) If at any time the Administrator after a hearing shall find 

that this open-price arrangement is being used for the purpose of 

price fixing or unduly enhancing the price, he may in his discretion 

suspend its operation or declare it permanently inoperative. 

SECTION 2. (a) No wholesaler shall quote to any purchaser of 

a product upon which the manufacturer thereof shall have granted 

to such wholesaler a fair price differential, as provided by Article 

VIII, Section 1 of the General Code, a lower price than that quoted 

on such corrunodity by said manufacturer to the same class of 

purchasers. 

(b) If such differential is greater than the operating cost of any 

n1ember of the Trade, such member of the Trade shall be permitted 

to sell at less than the differential so established upon furnishing 

proof of his lower operating cost to the Divisional Code Authority, 

but not less than his invoice cost plus said operatinO' cost. 

( c) Any wholesaler or distributor may reduce his price below 

that established in paragraph (a) of this Section in order to meet 

the competition of any other whole aler or distributor who, in accordance with the provisions of paragraph (b) of this Section, is 

1 See paragra ph 2 of order approYing this Code. 
11 

selling at a price less than that establi hed in paragraph (a) of this 

Section. 

( d) The Ad mini trator may, from time to time, collect stati tics 

of the operating expense of the members of the School Supplies 

and Equipment Distributing Trade. I£ such investigation shall 

show that the price differential established under paragraph (a) 

above is in any way inequitable or unduly high in relat10n to the 

wholesaler' 01 erating co ts, or tends to enhance the price of the 

product to buyers or ultimat consumers, the Administrator ma1-, 

after proper notice and hearing, su pend it or declare it permanent1y 

inoperative. 

( e) An exception to the rule in paragraph (a) of this Section may 

be granted by the Divisional Code Authority in case a wholesaler 

wi ·hes to di continue handlino- a manuf:icturer's line and has stock 

on hand to be lisposed of. In such case the manufacturer shall be 

given the option of takin,?" back at the manufacturer's then market 

price the whole aler's stock on hand or any portion thereof. If the 

manufacturer fails to exercise this option within ten (10) days after 

written notice by the wholesaler of his intention to discontinue handling that line, the wholesaler may proceed to dispose of the stock 

at any price he may desire. 2 

ARTICLE VI-STATE LAWS 

In any state where the purchase of School Supplies and/or Equipment is governed by the law of such state, provisions of this Supplemental Code shall not apply in any situation where such provisions 

would be in conflict with such state law. 

AnTICLE VII-PmYER OF PRESIDENT TO MomFY 

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

the provi ions of Sub-sectjon (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 said Act. 

ARTICLE VIII-EFFECTIVE DATE 

This Supplemental Code shall become effective on the tenth day 

after its approval by the Administrator. 

Approved Code No. 201-Supplement No. 12. 

Reo-istry No. 1098-1-03. 

• See paragraph 2 of order approving this Code. 

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SCHEDULE A 

REGIONAL DISTRICTS ESTABLISHED BY ASSOCIATION 

Dr TRICT A: Maine, Tew Hampshire, Yermont, Ma sachusetts, Rhode Island. Connecticut, -ew Y rk, New Jersey, Pennsylvania, Delaware, Maryland, West 

Virginia and District of Columbia. 

DISTRICT B: Virginia, North Carolina, South Carolina, Tennessee, Mississippi, Alabama, Georgia, Florida and Louisiana. Dr. TRICT C: Illin is, Indiana, Kentucky, Ohio, Michigan except Northern 

Peninsub. DrsTRICT D: Wiscon in, Northern P en insula of Michigan , Minnesota, Iowa, 

Missouri, Oklahoma, Kansas, Nebraska, North Dakota , South Dakota, and 

Montana. 

DrsTRICT E: Texas and Arkansas. 

DISTRICT F: v'.ryoming, Utah, Colorado and New Mexico. 

DrsTRICT G: w~, h invton, Oregon and Idaho. 

DISTRICT H: California, Nevada and Arizona. 

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UNIVERSITY OF FLORIDA 

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3 1262 08495 2539 

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