Approved Code No. 60-Supplement No. 1 Registry No. 501-07

NATIONAL RECOVERY ADMINISTRATION

SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE

BOOKSELLERS TRADE

(A Division of the Retail Trade)

AS APPROVED ON APRIL 13, 1934

R

U.S.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

For gale by the Superintendent of Documents, Washington, D.C. - - - - - - - - - Price 5 cents
This publication is for sale by the S uperiltvedent of Docuntias, G

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Und Donesic Coinnierce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

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Soattle, Wash. : 809 Federal Office Building.
Approved Code No. 60-Supplement No. 1 Registry 

ERRATA SHEET

SUPPLEMENTARY CODE OF FAIR COMPETITIO

FOR THE

BOOKSELLERS TRADE

As Approved on April 13, 1934

Page 7 paragraph 5 line 2, the word complaint " 

(" compliance.

Pa(e 7 paragraph 5 line 5, the word " manufactures " 

Inanu factured."

7- 1'l- -- ;4 .r*--65 

U. 5. GOVERNMENT PR
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Approved Code No. 60-Supplement No. 1

SUPPLEMENTARY CODE OF FAIR COMPETITIO

FOR THE

BOOKSELLERS TRADE

As Approved on April 13, 1934

ORDER

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

BOOKSELLERS TRADE

SCHEDULE B

A DIVISION OF THE RETAIL TRADE

An application having been duly made pursuant to and 

compliance with the provisions of Title I of the National Ind

Recovery Act, approved June 16, 1933, for approval of a Sc

"B" for the Booksellers Trade to the Code of Fair Comp

for the Retail Trade, and hearings having been duly held t

and the annexed report on said Schedule " B ", containing fi

with respect thereto, having been made and directed to the Pre

NOW, THEREFORE, on behalf of the President of the 

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

pursuant to authority vested in me by Executive Orders 

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

30, 1933, and otherwise; do hereby incorporate by referenc

annexed report and do find that said Schedule " B " complies 

respects with the pertinent provisions and will promote the 

and purposes of said Title of said Act; and do hereby orde

said Schedule " B " be and it is hereby approved.

HUGH S. JOHNSON,

Adininistrator for Indiutrial Recov

Approval reconinended:

WAsHIINGTON. 52900*--482-68--34 W. Arting A. A CHAIRMAN, pril Division I).C., 13, 1034. Administrator. (1)
REPOzr TO THE PREsmIDENT

The PnismENT,

The cteH e

Si: The hearing on Sched ule "B " of tie Reti'l Code 

Booksellers Division of the Retail Trndc wes held in ti he 

menilt of Con i eree B iildin, Washing-ton, D.C., on F rary 

Th1 Sc-hedtile, which is attached, wa1s preented 1).y- duly quaif

authorized repisentatives of the Trade, coniplying with 

requirements, said to represent 70 per ccint in dollar volume.

In accordaince with the customary procedure, vyrent

who had filed a request for an appearance was freely heard 

lie, and all statutory and regulatory requirement were 

with.

The provisions of this Schedule have been approved by 

stiners Advisory Board, Industrial Advisory Board, Labor A

Board, and the Legal Division.

CONI)ITIONS IN TILE TRADE

The main fact brought out at the Public hearing and 

hearing conferences clearly indicated that the "loss limitat

vision " in the Retail Code did not afford protection to ind

booksellers from predatory price cutting practices. Mem

the Trade are facing an acute situation as a result of "loss 

competition encountered fromi certain lar2e department store

to the adoption of the Retail ('ode, a few titles of' popu

books were placed on s ale occasit nally as "loss leaders " )

by some department stores, but the base f r price cutting ha

since the Betail Code has been in effect. Eich comipilj)t ing 

nient store knows that the otlier cannot sell below cost and 

price competition is, therefore, spread over tile Whls. ole b: ok 

ment. Competition of this sort for the iiid( pendentt booksoll

eventual ba Ilk rIll ptcy.

It is a significant fact that the gra nting of a copvrigrht 

to ani autlior or publisher creates a lh-al monopoly so fa

title is concerned. T he holder of the copvrioglIt has the ritr

the product not only to the retailer or distributors, but also 

to the consumer at whatever price he chooses. In vi'w of' 

' ight, it is to Ie remiieimbered that the Iook p ihlisi er cami sel

prices directly to the consuiller throutl2 tle nIediuin of nat

ner Trade vertising has The isdefinitely by in destructive or direct various lv oppressed tle competition large practice use P'I1CE firms of MAINTENANCE a small coupol. of dealing with price independent (2)tile in cutti Tle retail other PROVIsION sale g bookselIler. nerchandils.' now bo(k-)(,vers of bNoN in prevalenthdt
3

solely upon the sale. of books for existence. The sale of book

dependent upon a limited time factor as is the sale of new

and magazines about which no one would question the sale 

price fixed by the publisher and about which no one would 

competition by the retail distributor in the form of price c

This Schedule to the Retail ('ode contains in Section 3 (a) a

price provisions wherein the publisher's published price on an

book or text book is to be maintained by the retail bookseller 

first 6 months after publication or if published before July 1st 

year until after the first of the following year. After the 

months period or after the first. of the year following publicat

provided, prices for the sale of books are restricted by Sectio

Article VIII of the Code of Fair Competition for the Retail 

This provision is designed to afford relief to the bookseller

predatory price cutting by members of the Trade intereste

marily in the sale of other merchandise, with books as a p

bait or lure. Nothing short of publishers price protection as 

above can save the independent small bookseller from a dest

competitive battle in which he is handicapped at the start 

having other merchandise to which he can allocate his losses. 

making a careful study of the problems confronting this Tra

Consumers Advisory Board of the National Recovery Adminis

has approved the price provisions of this Schedule.

ADMINISTRATOR S PRICE CONTROL COMMITTEE

At the request of the Trade there is created under this Sc

an Administrator's Price Control Committee for the purpose o

taining a constant check on prices in the bookselling Trade 

vent abuses of the Price Maintenance Provision either by boo

lishers or by booksellers. This Committee shall consist of th

sumers Advisory Board representative on the Code Authori

representative of the National Booksellers Code Authorit

representative from the Trade Book Publishers Code Authorit

one representative of the Authors Guild of the Authors Lea

America.

ADMINISTRATION

The Bookselling Trade is designated a Division of the 

Trade and shall be represented as such and as hereinafter sp

in the National Retail Code Authority and in all its Local 

Code Authorities. The administration of the provisions 

Schedule shall be by the National Booksellers Code Authority 

shall consist of not more than 9 members, 4 of whomn sh

appointed by the Board of Directors of the American Book

Association; 1 to be appointed by the Board of Directors 

Advisory designated of the 2 of .National administration whom these Administrator. In associations Association shall Board. or selected be members appointed in of by addition, College accordance booksellers to upon be appointed Book it the with is who nomination Stores; provided a are by plan the not and that to Administratmembers of 2be the mmberthere approvConof s
4

FIN D1 NGIS

Ti 1Dleputy Adnmhistrator ill hil final rci )rt to Twu oil said 

ule .1 " of the Reta l ("(oe for thi Dilvell-r> I ifior 

R alil Tnalle hlavingo f(;rl~ t-, hercinl s( t autlulJ ()I the 

all tle procecdinlgs in th]i miiattcr:

1 Iiiid thait:

(I) Said Schedule B " is w eli <e*jgeld to prtote hit 

and puiUS of Title I of the National I( Idii-al I 

A ct, i i Ilin g 1OremO V I 1 of (A)rI 1(ct i 011s to I he fre f10w I% f

ti1er-1,a1e and foreign cOnnI1erIe which tcil ( to dimin

alllilit tibeleof and wNiii pr)V ilde for t1e gmeiell welfare 

11otiI the orgailizatilo of industry for the purpo-e of 

ativo action kiwoiitg the trade glroup-> by induciig :nd niain

lillt( (l actit)IJ Of ldir'tl -aldlai l vi elwillt 1111der 'Ide(uate 

illelit dl S jladts aI l supervision, 1)' y i i'llating l*li ri '(Of})Ot ive

practice, by proilioti g the fullest possible utilizationi of the 

production capacity of Industries, by avoiding uiidue re

of production (except as iay be temporarily require ) , by in

the coI Islmtiol of industrial and agricultural products 

increasiiig purchasing power, by reducing and relevi n g Un

ment, by improving standards of labor, and by otherwise 

itating ilidutrv.

(b) Said Trade normally eiploys not niove thaii 50,000 em

and is iiot classified by me as a major ifldustry.

(c) Said Sciedule "B " as approved, complies in all respe

the pertinerit provisions of said Title of said Act. including 

limitation Sub-section (a) of Section 3, Sub-ectioii (a) of S

and Subl-section (b) of Sect (i n 10 thereof, and that the a

associationis are trade issociatliis truly representative of th

said Trade; and that the said associations impose no inequi

rest ri toils On adillission to membership therein.

d ) Said Schedule " B " is not designed to and will no

mionopolies or monopolistic practices.

(e) Said Schedule " B " is not designed to and will not e

or oppress sniall enterprises and will not operate to disii

aaist them.

(f) Those engaged in other steps of the ecfiomic Proc

not been deprived of the right to be heard prior to approval 

Schedule " B " of the Retail Code.

For these reasons therefore, I have approved said Schedu

of tho Retail Code bor the Booksellers Division of the Retai

Respectfully,

IIuoii S. J(7uISON

Adminis

APL 13, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION 

THE BOOKSELLERS DIVISION OF THE RETAIL TR

SCIIEDULE B

In addition to the provisions of the Retail Code, the fol

supplemental provisions shall apply to the Bookselling Est

ments and to all Booksellers engaged in the Bookselling Tra

SECTION 1-DEFINITIONS

1. Books'lling Trade.-The terms " Bookselling Trade 

Trade " as used herein mean and include all selling to th

sumer and not for the puiposes of resale. and/or renting to t

sumer, for a consideration, of trade books and/or text books 

fined herein.

2. BookAefler.-The term " Bookseller " as used herein mea

includes, but without limitation. any individual, partnership

ciation, corporation, club, or public body, or any other form 

terprise now or hereafter engaged wholly or partially. either 

employer or in his or its own behalf, in the bookselling trade

3. Bookselling Establish, ent.-The term " Bookselling 

lisliment " as used herein means and includes any store or 

ment or section of a store used for or engaged in the book

trade and any establishment, office, or place of business e

in the retail distribution of books incliding retail distributi

partments of publishing companies, whether publishing books

azines, periodicals, or other articles sold jointly with books.

4. Books.-The term "Books " as used herein means trade 

and/or text books.

5. Trade Book.o.-The term " Trade Book " as used herein 

and includes an edition of any book manufactured or publish

sale by bookstores. It does not include. however, editions o

books manufactured for sale as the regular monthly selectio

Book Club, or editions manufactured and published excl

for distribution by mail order and/or subscription bookselle

6. Text Books.-The term " Text Books " as used herein 

and includes an edition of any book manuifacttired and pu

primarily for class use in educational institutions.

7. Book C bs.-The term " Book Club " as used herein 

and includes an individual or orcranization eng.ag-yed in th

through scribers of agent rate sonable monthly as in percentage paid who mail theselections, have or to sale through any bound of basis. other such and outside themselves a(rent subscriptions. for salesmen, (5) whom of insaid writing any Book of on bookseller books the to Club, same purchase to bona or may comon F
6

8. A Ct (rntd Ad(1?ihJI"Ni'or.-The term "Act " and " Adn

tor " as tv-d hcrein sll S :iean rspectively the Natioial ln

Recovery Act aid te A h inistrator for lindiustrial Re hcover

srm N 2-Err L'iv i: )D':

ihis sclhedile hall becomIe effective oil its approval 

Ad II i n ist iatwr.

Sors -TRADE Pwie

The fol lowiN g provisions supersede the proviions of Artic

of the Retail Code, except as hereinafter specified, as to th

lbooks:

(a) Except ,4 h1ere inafter specified, no boohsel ler -1 

for sale anry (opv or edition of any book diiri.n. the first 

mI)nthI s after the pukiblicatit)n date thereof, or if pub1)1 bef

1st in any year, until January 1st of the following year, at 

lower than the publisher's published price thereof.

(b) At any other time after publication (late than the tim

fied above, no bookseller shall sell or offer for sale any copy 

edition 0 f any book at a lower price than provided in the p

and paragraph number "1" of Section 1 of Article VII

Retail (ode and any amendments thereto.

EXCEPTIONS

(1) Sales of books as bona fide clearance, or of bona fide 

tinned books, if advertised, marked and sold as such; provid

ever, that such books as are governed by Section 3 (a) shal

offered by the bookseller for return to his source of supply at 

than the bookseller's invoice cost; and, damaged "second-ha

shelf-worn books, if advertised marked and sold as such; bo

on complete final liquidation ol any business; provided that 

sha be sold pursuant to the above exceptions contrary to 

ulations of the National Bookseller's Code Authority w

approved by the Administrator.

(2) Sales of books to public libraries, schools and school 

colleges and college libraries, church libraries, charitable o

tions, State reading circles and other public agencies for 

tional and or institutional library purposes only, provided 

the Boo4keller's Code Authority shall at any time, with the 

of the Admhini trat or, fix discounts for such sales, discounts 

thereof shall not be allowed. Any such discount Thall 

increased beyond that amount by special considIerat ion.

(3) Sales governed by State laws and, or contracts with 

or any political -Iuhdivision thereof, making it nmandatory 

prices be makes C'ode define p(rs5~fld (4) (5) more Ait]r to Sales The " any publi tho usethan othwr sale ()f only. State itv tihe b)ks of r's shail sale. or lowest. re siilbivision to Iliain issie a bookseller's price lders such Iub-eliers' remainders " at and rules thereof which to employees and regu by of tile regullations the books 1 ate bwokseller bookseller for sales ; the the of neceBooemsc
7

fisher's remainders. In the event of an allied violation 

pr oi I. it M1) h p g t face evildwe (f ciplaint, if the bookSl ler I oil hie a I) >b11m its an a l ida vit frim his source of 

that the bwoks il <estion are, ii fact, publisher remain

boolV, (IIJ not iwiiimfortilrcs specially for rema inder sale.

(6) Sales of books by a lolly appointed referee or rece

bankruptcy for the purpoe- of liquidating the assets of a bo

for the benetits of his creditors, but only for the purp

liq iidat ion.

(e) No bookeller shall (rive or offer to give any trade book 

text book as an ihndlicemlient for the pclhase of any other bo

included in the defini< ton above, or other erchandise, nor shall any

bookseller( give or ol'er to give any other such book or other merchandise as an inducement for the purchase of a trade book and/

book, except that this provision shall not apply to qualified m

of the Subscription and Mail Order Book industry, as defined 

Code for that Id uIt r, if such books offered or given by sai

bers are special editions readily distinguishable in format fr

regular trade edition or if they are trade editions originall

lished in the United State, not less than two years before suc

SECTION 4-ADMINITRATION

The Bookselling Trade is hereby designated a Division 

Retail Trade and shall be represented as such and as here

specified in the National Retail Code Authority and in all it

Retail Code Authorities. Except as hereinafter expressly pr

the administration of this Code and of this schedule, as ap

to the Bookselling Trade, shall be as provided in Article X 

Retail Code:

There is created herein a National Booksellers' Code Autho

follows:

Four (4) members shall be appointed by the Board of D

of the American Booksellers Association; one (1) member 

appointed by the Board Directors of the National Associa

College Book Stores; two (2) members shall be designa

selected by booksellers who are not members of either of thes

clations In accordance with a plan to be approved by the A

trator; two (2) Administration members shall be appointed 

Administrator, one of whom shall be appointed upon the n

tion of the Consuners' Advisory Board, but neither of who

have a vote and both of whom shall serve without expense 

National Booksellers Code Authority; and such other ad

members as the Administrator may deem necessary to truly 

sent the members of this trade.

Authority Code, bers 1. (a) (b) c d) Nattioad of appoint Comnnittee Committee Committee Coninittee the shall, trde Bookseller8 from as the onon soon among following Public Rental Bookselletv-J Premiums as Code its practical Libraries Libraries membrs committees: Authority after brs or from the Rlations Coinmittees.-Theffective representativdate 
8

(e) Committee on Booksellers-Mail Order and Sub

Booksellers.

(f) Committee on1 Booksellers-Publishers Relations

(g) Committee on Staite and Municipal Contracts

and such other comunittees as may be necessary to assist 

Authoritv in its recommendations amd findings to the Admi

The Committees above named shall, upon request, of the 

trator, or any member or members of the Code Authoritv. m

surveys, s(studies al1nd reports -s the Administrator may des

find necessary, and in pjarticular the Committee on Booksel

lishers' Relations shall fromt time to time report to the Adm

on the wages and hours of labor employed by the retail dis

departments of publisher members of the Trade. On the 

such surveys and reports of the said commnittees or any of t

Code Authority shall if it deems necessary issue such rules a

lations as may be necessary to effectuiate fair competitive pra

tween such members of the industry and others as are includ

such surveys. Such rules and regulations, when so issued by 

Authority and approved by the Administrator, shall be made 

inmediately or at such time as is specified by the Administr

when so effective, shall be made a part of this Schedule.

2. : din 'Stator's Pric Control Com~mnitce.-The Admi

shall inuediately tipon the effective (late of this Code appoin

mtittee to be knovn as the Administrator's Price Control Co

which shall consist of (a) the Administration representati

itiated by the Consumers' Advisory Board, (b) one (1) re 

tive of the National Booksellers Code Authority. (c) one (f

sentative from the Trade Book Publishers Code Authority. 

one (1) representative of the Authors Guild of the Author

of America, designated by the President of said Guild: wh

mittee shall, upon the demand of the Administrator and 

member of the Committee. immediately investigate and r

the National Booksellers Code Authority and to the Admi

any claim of unwarranted increase in publisher's list price

crease in discount, front the publisher's list price to any book

any other unwarranted increases in cost and/or prices c

increased or changing costs de to the National Industrial 

Act.

Ihe (Code Authority shall immediately after receipt of 

vestig nation and findings. submit a full report. thereon, wit

mend nations. to the Administrator. who may after a hearing 

notice to all parties interested determine that unwarranted 

in the Iblishers published price or decreases in the bo

discount O4 any book or books have been made. Upon such determination the Adninistr'ator may suspend the operation of t

Provi ions of this Sched ule in connection with the sale by 

(r5 co cream with designated of increases 3. 'the .Unts ted here Of Code similarly the shall Co(de book in to or Coordiwa/ing Iave imabove, books publisher's A serve designated authority in been liiestion as an eliminated. the until and published equ Commiltee.-Froni representatives representatives such ail the time niniber Administrator as price in the opinion of of any and/or of representatives the the and such Bookselledecreases Code all unwotA
9

authorities created under allied Codes, insofar as such C

tain iv, iprocal code coordinlaimting Jrov isio ns. Such 

of t l looksellers Trade ;1lall act withi such (4her (ly 

1)rr-m:iaat ives, as the Code Coordinating (onliiiittoe of 

elh'rs Trade and Allied Indl-tiies. uch Code Coordnlit

miie shi1 assist the Adiniistrator in the adbinil i4erln

a I((her allied codes repre.entcd thereon, on all imatter

the welfare of the members of tills trade and oihr all

tries, and such Code Coordinating Committee shall ,audy a

on all matters brougIht before it.

4. Powers of Aationa! Book.U.llcrs 'ode A 11/ordqy.

tional Booksellers Code Authority herein created Ahall 

powers necessary to asIst the Adininistrator in the adm

of the provisions of this Schedule and through the Local B

Conunittees, or such separate Local Booksellers Code Auth

may be authorized, shall have the sole power to assiS. the 

trator in administering the price provisions of this Sched

0. literpretationis.-The Administrator may iroi m111

) 

after consultation with the National Booksellers Code 

issue such Administration interpretations of the provisio

Schedule as will be necessary to effectuate its purpose, an

terpretations shall, unless the Administrator may specify 

become immediately operative as a. part of this Schedule.

G. Local Booksel/c)Y Coinimittee.-The National Bookse

Authority shall, with the approval of the Administrator, 

the formation of a Booksellers' Comnmittee in each authori

Retail Code Authority, which Booksellers' Committee shal

power and authority to administer the provisiOnls of this 

and in conjunction with each Local Retail Code Authority

minister the provisions of the Code of Fair Competitio

Retail Trade. Each such Booksellers' Committee shall inc

nenbership and shall designate from among its menib

repi <eutative or repreentatives of the bookselling trad

Local Retail Code Authority in the respective trade areas.

Provided, however, thIt upon application from the Natio

seller (Code Authority advi-Jii the. Administrator tha

Local Booksellers' ( ode Authoriti(> are necessary to secu

fective administration of this Schedule in nietropolitan 

Adminis-;rator maY authorize the formation (f such Lo

seller) ('o e Auth'orities at any time after the effective da

che l1ul. Such >el)arate Local Booksellers' Code Author

asi-t in the admin iTtration of the Code of Fair Compe

the Retail Trade and of this Sehe dtle in such areas as nav 

within their jurisdiction.

7. apcnes.-The expenses iece-mry for the a agencies e

sellers pursuant insofar them CodeApprOved Registry Authority i Cmde as accordanlee to No. Code borne Article 5o1-uT. Autiority, No. aid by fi-Suppement X with subject Bookcliers. of the a in) plan Retail to coistiltation the to 0No. shall aPI)roval Code b, 1.devised he and with equitably of piriiant by the the the AdminiNationassessNatio

to th




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