Approved Code No. 20i-Supplement No.4 Registry No. 1606-0:t 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

BEAUTY AND BARBER EQUIPMENT 

AND SUPPLIES TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON APRIL 4, 1934 

. -..... 

U.S. DEPOStTOIIY 

WE ·Do OUR PART 

,, 1 I I 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON: 1934 

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

\t 
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Approved Code No. 201-Supplement No. 4 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

BEAUTY AND BARBER EQllPMENT AND 

SUPPLIES TRADE 

As Approved on April 4, 1934 

ORDER 

SUPPLEMENTARY ConE OF FAIR CoMPETITION FOR THE BEAUTY .AND 

BAP.nER EQUIPMENT AND SuPPLIES 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 Beauty and Barber Equipment 

and Supplies Trade, a Division of the Wholesaling or Distributing 

Trade, and hearings having been duly held th-ereon 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 

State~, I, HughS. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise ; do hereby incorporate by reference said annexed 

report and do find that said Supplemental Code complies in all 

respects with the pertinent provisions and will promote the policy 

and purposes of said Title of said Act; and do hereby order that said 

Supplemental Code of Fair Competition be and it is hereby approved; 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. 

HUGH S. JOHNSON, 

Administrator for Industrial R ecovery. 

Approval recommended: 

w. A. HARRIMAN, 

Acting Division Administrator. 

wASHINGTON, D.C., 

April 4, 1934. 

51242°-482-17-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report of the Hearing on the Code of Fair Competition for the Wholesale Beauty and Barber Equipment and Supplies 

Trade, conducted in the Jefferson Room of the ~iayflower Hotel- on 

December 11 1933. The Code which is attached was presented by 

duly qualified and authorized representatives of the Trade, complying with the tatutory requirements said to repre,sent 7 per cent 

in number and approximately 85 per cent in volume of the Trade 

which could be included in this Code. 

THE TRADE 

According to statistics furni hed by the members of the Wholesale Beauty and Barber Equipment and Supplies Trade there are 

approximately 475 estab1i hments with aggregate annual sales of 

$31,600,000. The Trade emplo~ about 6,600 persons. 

P ROYISION S OF THE CODE 

Since this Code is upplemental to the General Code of Fair Competition for the "\Vhole.'aling or Distributing Trade it contains no 

labor provi ions. 

The provisions containing 'upplemental definitions are inclusive 

and accurate. 

The upplement to the admini trative provision,s establishes a Divisional Code Authority for the Trade which i representative of 

the different elements in the Trade. According to the statistics submitted by the Trade the Beauty and Barber Supply Institute, Incorporated contains among its members or is authorized to repre~ent 

in the admini tration of the Code 75 per cent of the number of concerns in the Trade. It member sell approximately 85 per cent of 

the total sale volume. The selection of five members of the Code 

Authority by the Beauty and Barber Supply Institute and one representative by non-members of the In,stitute is representative of the 

Trade. 

The Trade practices proposed in the supplements to Articles VII 

and VIII are not in any respect objectionable. The provisions governing the distribution of professional packages is designed to remedy an abu.se of long standing in the Trade. The provisions concerning the sale o.f equipment on the installment basis is adopted as a 

means to insure uniform practice in these activities. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceeding in this matter; -

(2) 
3 

I find that : 

(a) Said 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 ancl foreign 

commerce which tends to diminish the amount thereof and will provide for the general welfare by promoting the organization of, inO.ustry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capa.city of industries, 

by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

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

and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant group 

is a trade group truly representative of the aforesaid Trade; and 

that said group imposes no inequitable restrictions on admission to 

membership therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Th0se engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said Code. 

For thE>se reasons this Supplemental Code has been approved. 

Respectfully, 

HuGH S. JoHNSoN. 

APRIL 4, 1934. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE BEAUTY AND BARBER EQUIPMENT AND SUPPLIES TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To further effectuate the polic.ies of Title I of theN ational Industrial Recovery Act the following ~rovisions are established as a 

Supplemental Code of Fair Competition for the Wholesale Beauty 

and Barber Equipment and Supplies Trade to the Code of Fair 

Competition for the Wholesaling or Distributing Trade, as provided 

by Article VI, Section 1 (c) thereof, and such Supplemental Code 

shall be considered as a part of and in connection with said Code 

for the Wholesaling or Distributing Trade; and both Codes shall 

be binding upon every member of such Wholesale Beauty and Barber Equipment and Supplies Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTING ARTICLE II OF THE GENERAL CODE 

SECTION 1. The term " Trade " as used herein is defined as the 

distribution to beauty and barber shops and beauty and barber 

schools of equipment, furniture, supplies and material commonly 

used in the outfitting of the same. 

SECTION 2. The term "member of the Trade" as used herein includes, but without limitation, individuals, partnerships, associations, corporatiom:: , or other firms engaged in the Trade, either as an 

employer or in his_, its or their own behalf. 

SECTION 3. The term "the Codes" as used herein shall mean and 

include the Code of Fair Competition for the Wholesaling or Distributing Trade and this Supplemental Code of Fair Competition 

for the Beauty and Barber Equipment and Supplies Trade. 

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

shall mean the Divisional Code Authority for the Wholesale Beauty 

and Barber Equipment and Supplies Trade, a division of the Wholesaling or Distributing Trade. 

SECTION 5. The term " Regional Districts " as used herein is defined to mean the Divisions of the Advisory Committee of the Beauty 

and Barber Supply In titute, Incorporated, heretofore established 

by such Institute. 

SEcTION 6. The term " General Code ", as used herein, shall be 

defined to mean the Code of Fair Competition for the Wholesaling 

or Distributing Trade. 

SECTION 7. The term "consignment", as used herein shall mean 

leaving merchandise with a customer for an indefinite period, the 

(4) 
5 

title to remain in the member of the Trade until such time as the 

customer shall sell the merchandise. 

ARTICLE III-ADMINISTRATION 

SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 

SECTION 1. The Divisional Code Authority shall be composed of. 

five (5) members of the Trade or representatives thereof; four (4) 

to be elected by the Executive Committee of thg. Beauty and Barber 

Supply Institute, Incorporated, and ratified by a majority vote of 

such Institute, and one (1) who shall be elected by non-members of 

such Institute in accordance with a fair method approved by the 

Administrator. 

SECTION 2. The successor to any member of the Divisional Code 

Authority shall be nominated and elected in accordance with a plan 

devised by the Divisional Code Authority subject to the approval 

of the Administrator. 

SECTION 3. The Divisional Code Authority shall have the follow-

. ing duties and powers, in addition to those prescribed in the General 

Code; all such duties and powers to be subject to review by the 

Administrator : . 

(a) To appoint a Trade Practice Committee, which shall meet 

with the Trade Practice Committees appointed under such other 

Codes as may be related to the Trade (except Trade Practice Committees appointed under Supplemental Codes to the General Code) 

for the purpose of formulating fair trade practices to govern the 

relationships between production and distribution employers under 

this Code and under such others, to the end that such fair trade 

practices may be proposed to the Administrator as an amendment 

to this Code and such other Codes. 

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

to assist the Divisional Code Authority in administering the Code; 

provided, however, that nothing herein shall relieve the Divisional 

Code Authority of its responsibilities as such. 

(c) To organize, elect officers, hire employees and perform such 

other acts as may be necessary for the proper administration of the 

Code. 

SECTION 4. Nothing contained in this Supplemental Code shall 

constitute the members of the Divisional Code Authority partners for 

any purpose nor shall any member or members of the Divisional Code 

Authority be liable in any manner to anyone for any ac.t of any other 

member, officer, agent, or e.mployee o£ the Divisional Code Authority; 

nor shall any member of the Divisional Code Authority, exercising 

reasonable diligence in the conduct o£ his duties hereunder, be liable 

to anyone for any action or omission to act, under this Supplemental 

Code, except for his own wilful misfeasance or nonfeasance. 

SECTION 5. I£ 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 may 

require that such action be suspended to afford an opportunity £or 

.investigation o£ the merits o£ such action and for further consideration by such Divisional Code Authority or agency, pending final 
6 

action, which final action shall 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. 

ARTICLE IV-TRADE PRACTICES 

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 

SECTION 1. Merchandise Used for Non-Profit Purposes.-No member o:f the Trade shall break up, and sell separately, the items in a 

package o:f merchandise prepared and sold by the manufacturer 

primarily :for advertising or educational purposes without profit as 

and :for a unit; a " unit " is hereby defined as a package containing 

the same kind o:f merchandise; the term "unit", however, shall not 

include packages containing items used in a single continuous treatment, together with text books or other forms o:f instructions or 

directions :for proper use. 

SECTION 2. Professional Packaqes.-No member of the Trade shall 

repack or transfer any article from a " professional package " or other 

original container into another container in violation o:f any contract 

with the owner o:f the formula or trade mark, or with the original 

manufacturer, and offer such repacked product in competition with 

the product, as originally packed, o:f such owner or manufacturer; 

a " professional package " is defined as a package containing supplies 

or materials which the manufacturer has provided by contract for 

resale to shops as originally packed and :for shop use only. 

SEOTioN 3. Limitation on Sale of Professional Packages.-No 

member o:f the Trade shall sell professional packages to other than 

beauty and barber shops and/ or schools, and other commercial users. 

SECTION 4. l ndtwcements to Purchmsers.-No member o:f the Trade 

shall give or offer to give any :free merchandise or service equivalent 

to the same (except items or services used :for advertising or educational purposes and given to the trade at large) either alone or with 

other goods in the :form of "combination deals " or otherwise, as an 

inducement to a purchaser or prospective purchaser or agent or 

employee of the same to buy other or additional goods. 

SECTION 5. Sales Policy on Violation of Educational Goods Agreement.-No member o:f the Trade shall service, deliver to or supply a 

school with the product o:f a manufacturer i:f said school shall have 

accepted the product :from such manufacturer as :free merchandise 

to be used :for educational and instructional purposes and shall have, 

subsequent to the acceptance o:f such product, violated the sales 

policy or agreement under which the said :freely :furnished product 

Is intended to be used; provided, however, that when the said school 

has thereafter paid the wholesale price of such misused product, as of 

the date o:f acceptance, to the manufacturer, this section shall have 

no aoplication to said school. 

ARTICLE V-PERMISSIVE TRADE PRACTICES 

SUPPLEMENTING ARTICLE VIII OF THE GENERAL CODE 

As expressly permitted in Article VIII, Section 2, o:f the General 

Code, the following practices constitute additional fair methods of 
7 

competition for members of the Wholesale Beauty and Barber 

Equipment and Supplies Trade, and violations of the same are 

prohibited. SECTION 1. Price Lists and Sales T ernU3: 

(a) Price Lists.-Members of the Trade servicing beauty and 

barber shops shall file individual schedules with the Divisional Code 

Authority setting forth the terms, conditions, discounts, and prices 

upon which they each propose to sell. It shall then be an unfair 

trade practice for any member who has filed such a schedule to 

enter into selling transactions involving terms, conditions, discounts, 

or prices other than those set forth in such schedule. Individual 

schedules are subject to change by filing a new schedule, which shall 

be effective five ( 5) days after filing. All schedules in effect at any 

particular time shall be matters of public record and shall be macte 

available to the members of the Trade by the Divisional Code 

Authority and also to any interested party upon request and payment of costs of publishing the same; provided, however, that 

damaged or deteriorated articles may be sold by a member of the 

Trade upon terms, conditions, discounts and prices different from 

those contained in his published schedule when such member has 

complied with the provisions of Article V, Section 1 (h) of this 

Supplemental Code.1 

(b) Content of Invoices.-All invoices issued by members of the 

Trade shall embody provisions of this Supplemental Code regarding 

the terms and conditions of sale including prices, payment dates, 

provisions governing delinquency, descriptions, discounts, and discount periods, packing and delivery charges, delivery date, cancellations, returns or exchanges of trade products. 

(c) Credit Sales.-The cash discount on all invoices paid on or 

before the tenth of the month following the date of purchase shall 

not exceed 2% of the invoice price. Invoices paid after the tenth 

day of the month following the date of purchase shall not be subject 

to discount. 

All bills not paid within three months from date of delivery shall 

be considered past due and no further credit shall be extended by any 

member of the Trade until payment of such past-due account has 

been made, unless the member of the Trade notifies the Code Authority in writing that further credit is being extended and gives the 

reasons for such extension of credit. 

(d) Cash Sales.-On cash sales of furniture or equipment purchasers may be given a discount not to exceed 5% from the established selling price less the amount of any allowances for trade-ins. 

(e) Allowance on Trade-ins.-The Divisional Code Authority 

shall study and analyze the subject of establishing, on a regional 

basis, maximum trade-in allowances for used furniture and/or equipment and questions relating to the subject of the enforcement of the 

same, and shall recommend a plan to the Administrator for that purpose. The Administrator may, after such notice andjor hearing as 

he may prescribe, approve said plan which shall thereupon become a 

part of the Code. 

(f) Policy on Transportation Charges.-All supplies, not including equipment, shall be sold f.o.b. seller's place of business, whether 

1 See paragraph 2 of order approving this Code. 
8 

delivered by freight, express, truck, mail, or parcel post, unless the 

Divisional Code Authority shall, subject to review by the Administi·ator, permit delivery equalization with the nearest competitor selling the same i terns. 

(g) Sales Below Oost.-No merchandise shall be sold below its 

net invoice cost plus transportation costs to seller's warehouse plus 

an allowance for actual wages involved in the sale and delivery of the 

merchandise by the wholesaler, such allowance to be determined by 

the Divisional Code Authority subject to the approval of the 

Administrator. 

(h) Sales of Da1naged or Deteriorated Articles.-With respect to 

damaged or deteriorated articles, members may sell the same to shops 

regardless of cost, provided : 

(1) That the manufacturer thereof shall have refused or neglected 

to repurchase the same within ten days after the time that they 

are tendered to him by a member of the Trade at his purchase price 

less a reasonable charge allowed the manufacturer for reconditioning 

the same. 

(2) That such article or articles shall have been advertised as 

unsalable through the medimn of the "association trade journal" 

of the Beauty and Barber Supply Institute. 

(i) Sales on Oonsignment.-The sale of trade articles on a "consignment " shall constitute an unfair method of competition; provided, however, that if a member of the Trade shall be unable to 

dispose of his product under the provisions of Article V, Section 

1 (h), of this Supplemental Code then such member may sell 

on "consignment" subject to regulation by the Divisional Code 

Authority. 

(j) Installment Sales.-In the case of installment sales, the Divisional Code Authority may make recommendations to the Administrator relative to minimum down payments on any commodity 

of the Trade in any regional district. When the Administrator shall 

approve any such recommendation, it shall be an unfair trade practice for any member of the Trade within such regional district to 

sell such commodity on an installment plan without requiring such 

minimum down payment. 

ARTICLE VI-BUY FROM N.R.A. MANUFACTURERS 

To effectuate the policy of Title I of theN ational Industrial Recovery Act, the members of the Trade hereby agree, by and with the 

advice and consent of the Administrator, and to the extent to which 

it may be lawful, to confine their dealings to persons, firms, and corporations giving their unqualified support to the President and the 

National Recovery Administration during the period of the national 

emergency. 

ARTICLE VII-EFFECTIVE DATE 

This Supplemental Code shall become effective on the tenth day 

after approval. 

Approved Code No. 201-Supplement No. 4. 

Registry No. 1606-04. 

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UNIVERSITY OF FLORIDA 

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