Approved Code No. 201-Supplement No. 6 Registry No. 409-06 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE STATIONERY 

TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON APRIL 21, 1934 

WE DO OUR PAAT 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents. Washington, D.C. - - - - - - - - Price 5 cents 
This publicat!i.an is for sale by the 'uperintenclent of Documents, Gov rnment 

Printing Office, "\Ya hington D.C., a nd by di trict offi ·e · of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ARTI'dENT OF COMMERCE 

Atlanta., Ga. : 50-::I: Po t Offic Buililing. 

Birmingham Ala. : 257 Federal Building. Bo:::;ton, Ma··.: 1801 u tomhou e. 

Buffalo, N.Y.: hamber of Commerce Building. 

harleston, '.C.: Chamber of 'ommerce Building. 

Chicago, Ill.: 'uite 1706, 201 orth Well treet. --,leveland, Ohio: Chamber of Commerce. 

Dalla , 'l'ex. : 'hamber of Commerce Buildin°·. 

Detroit, l\Iich. : 01 First National Bank Building. 

Hou. ton, Tex. : Chamber of ommerce Building. 

Inclianapoli , Ind. : Chamber of ommerce Building. 

J ack onville, Fla.: Chamber of Commerce Building. Kan, as 'ity, Io.: 102 Baltimore AYenue. Lo Angele~, Calif. : 1163 outh Broad·way. 

L oni. ·ville, Ky. : 408 Federal Building. 

M mphis, Tenn.: 229 Federal Building. 

Minneapoli~, :Minn. : 213 Federal Building. 

New Orlean::-, La.: Room 225-A, 'ustomhou e. 

New York, N.Y.: 734 Cu tomhouse. 

Norfolk, Ya.: 406 Ea t Plume Street. 

Philadelphia. Pa.: 422 Commer ·ial Tru t Building. 

Pitt burgh, Pa.: 'hambei- of C0mmerce Building. 

Portland, Oreg.: 215 New Po t Office Building. St. Loni , l\lo.: 506 Olive St1ieet. 

San Francisco, 'alif. : 310 Cu ·tomhouse. 

Seattle, W ash.: 809 Federal Office Building. 
Approved Code No. 201-Supplement No. 6 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE STATIONERY TRADE 

As Approved on April 21, 1934 

ORDER 

SUPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE WHOLESALE 

STATIONERY TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUT1NG TRADE 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Indu trial 

Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Whole ale Stationery 

Trade to the Code of Fair Competition for the Wholesaling or Distributing Trade, and hearings having been duly held thereon and 

the annexed report on said Supplemental Code, containing findings 

with respect thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the Pre ident of the United 

. States, I, Hugh S. 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. 

Approval recomended: 

II. o. KING, 

HUGH s. JOHNSON' 

Administrator for Industrial Recove11y. 

Divwion Adminwtrator. 

WASHINGTON, D.C., 

April fl, 1934. 

64394°--482-139-34 (1) 
REPORT T O THE PRE IDE T 

The PRE...,IDENT, 

Tlze lVhite House. 

Srn: This is a report of the H aring on the Supplemental ode of 

Fair Competition of the \Vl1ol ale Stationery Trade conducted in 

Room 2062-66 Department of Commerce Building on ~'.Iarch 10, 

1934. The Code which is attached was pre ented by a cluly qualified 

and authorized repre entative of the Trade, complying with the 

statutory requirement , ·aid to represent 60 per cent in number and 

about 73 per cent in Yolume of sale of the Trade which could be 

included in thi Code. 

THE TR.iDE 

Accor ling to tati -tic furni heel by members of the ,v110le ale 

Stationery Tra le, there ar approximately 250 establi hment with 

aggrega.te annual sales of $30,000,000. The Trade emplo3 about 

7 :500 per ons. 

PRO\"! IO:N OF THE ODE 

ince thi Code i supplem-ental to the Code of Fair Competition 

:for ~h_e ,Yhole ·aling or Di -tributing Trade it contain no labor 

prOYl 1011 ... . 

The provi ·ion containing ...,upplemental definition · ar{j con idered 

inclu. iYe and a curate. 

The Sup1 lement to th dministratiYe provisions of the General 

Code establi hes a Divisional ode Authori which is fairly and 

ad quately representatiYe of all the different element in th Trade. 

The Trade practices propo ... ed are not in any wa objectionable. 

The provi ion rerrardino- quantity di count i · de ianed to meet a 

problem which has recently be-en di tre sing to the Trade. The pro- vi ion regarding mail order shipment i adopted a a pr tective 

mea ·ure for alesmen. 

FINDINGS 

The Deputy Administrator in his final rep rt to me on aid Supplemental Code haYino- found a h rein et forth and on the ba is 

of all the proceedings in thi matter; 

I find that 

(a) aid upple~nental od i. d~ i necl to promote the policies 

~ncl p~1rpo e of Title I of tl:ie ::N ahonal Ind trial Recovery ct, 

1nduclmg removal of ob. tru tion. to the free flow of inter tate and 

for ion c mrner e whi h ten 1 to limini ·h the amount thereof and 

will provicl for th 0 · n ral w lfare b. T promoting the organization 

of t_racl ~or th pnrpo _o~ c ope~ative a~tion among trade oToup , by 1ndncm~ and mamtammg mute l act1011 of labor and marn1Cl'e-

(2) 
3 

ment under adequate governmental sanction and snperv1 10n, by 

eliminating unfair competitive practices, by promoting the fulle t 

possible use of the present productive capacity of indu tries, 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 . tandards of 

labor, and by otherwise rehabilitating industry. 

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

and it is not classified by me as a major industry. 

( c) The Supplemental Code as approved complies in all respects 

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

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

applicant association is a trade association truly representative of 

the aforesaid Trade; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

(cl) The Supplemental Code is not designed to and will not permit 

monopolies or monopolistic practices. 

( e) The Supplemental1 Code is not designed to and will not eliminate or oppress small enterprjses 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. 

(g) This Trade is duly representative and therefore, as provided 

:for in the Code of Fair Competition for the Wholesaling or Distributing Trade (footnote to Section 2 (b) of Article VII), and in 

accordance therewith, is entitled to become a Division of said Code 

and be permitted a Supplemental Code thereto. 

For these reasons, the Supplemental Code has been approved. 

Respectfully, 

APRIL 21, 1934 

HUGH S. JOHNSON, 

Arbninristr'a1tor. 
SUPPLEMENTARY CODE OF FAIR co:MPETITION FOR 

THE \VHOLESALE STATIONERY TRADE 

A DIVISION OF 'l'HE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To further effectuate the policies of Title I of the National Industrial Recovery Act the following provisions are established as a 

Supplemental Code of Fair Competition for the Wholesale Stationery Trade to the Code of Fair Competition for the Wholesaling or 

Distributing Trade, as provided by Article VI, Section 1 ( c) thereof, 

and shall be considered as a part of and in connection with such 

Wholesaling or Distributing Code, and both such Codes shall be 

binding upon every member of such vVholesale Stationery Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTING ARTICLE II OF GENERAL CODE 

Wholesale Stationer or Distribut01~.-The terms "wholesale stationer" or "distributor", as used herein, shall mean any individual, 

partnership, association, corporation, or other firm or definitely organized division thereof, organized for the specifie purpose of rendering a general distribution service which buys and maintains · at 

his or its place of business a stock of lines of merchandise cus- tomarily carried by those engaged in the vVholesale Stationery Trade 

and which through salesmen, advertising, catalogs, and/ or sales .promotion devices, sells primarily to retailers, and/ or L.'lcidentally to 

institutional, commercial, and/ or industrial users, but not in significant amounts to ultimate consumers. 

The Tracle.-The term " Trade " as used herein shall 1nean the 

business in which wholesalers or distributors of stationery are en- gaged. 

Divisional Code Authority.-The term "DiYisional Code Authority " , as used herein, shall mean th~ Divisional Code Authority for 

the Wholesale Stationery Trade, a division of the vVholesaling or 

Distributing Trade. 

General O ode.-The term " ,General Code ", as used herein, shall 

mean the Code of Fair Competition for the "'\Vholesaling or Distributing Trade. 

M e11ibe1· of the TTade.-The terrn "1nember of the Trade " as used 

herein, shall be defined to mean any \Vholesaler or Di~tributor 

engaged in the Trade. 

A RTICLE III-ArnHINISTRATION 

SUPPLEMENTING ARTICLE n , SECTION 2 ( E) A :rD SECTION 5 OF THE 

GENERAL CODE 

1. (a) The Divi ional Code Authority shall consist of seven (7) 

member , from among the trade, or representatiYe thereof, four 

(4) 
5 

( 4) to be chosen by the Wholesale Di vision of the Board of Control 

of the Wholesale Stationers' Association , t,vo (2) to be elected by 

the Interstate Associatio~ of Stationery, Toy, and Novelty Jobbers, 

Inc., at any regular meeting of that Association, and one (1) to be 

chosen by those members of the Trade who are members of neither 

of these Associations. This last member shall be chosen according 

to a plan to be prepared by the Wholesale Stationers' Association 

and app~ove~ _by the Administrator. In case no practicable plan 

of selecting this member can be worked out he may be appointed 

by the Administrator. 

(b) Only those members of the Trade (regardless of membership 

in the Associations named in Article III, Section 1 (a) above) shall 

be allowed to vote in the election of members of the Divisional Code 

Authority who sign or shall have signed a statement of assent and 

compliance to this Supplemental Code and the General Code. 

( c) 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 by-laws 

of the Divisional Code Authority, subject to the approval of the 

Administrator. 

2. The Divisional Code Authority shall appoint one of its members to a committee, which, if and when the Divisional Code Authority of the Commercial Stationery and Office Outfitting Trade 

and the Divisional Code Authority of the School Supplies Trade 

shall appoint one member each thereto, shall constitute a coordinating committee of the three Trades. If and when the Divisional 

Code Authority for the Wholesale Stationery Trade shall appoint 

its member to the coordinating comm.ittee, the Divisional Code Authority shall delegate to its member such of its general powers as 

may be necessary for him, in collaboration with the other two members of the coordinating committee, to coordinate the administration 

of the Supplemental Codes for the three Trades, so as to assure that 

such administration will be fair and equitable to each. Nothing 

herein shall be considered to relieve the Divisional Code Authority 

of any of its duties and responsibilities. The Divisional Code Authority shall abide by any judgment of the coordinating committee 

requiring that committee to report to the Administrator any alleged 

violation of the provisions of this Supplemental Code which requires 

the cooperation of the three Trades in its adjustment. 

3. The Divisional Code Authority shall have the following duties 

and powers, in addition to those prescribed in the General Code. (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 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 this Supplemental Code and under such 

others, to the end that such fair trade practices may be proposed to 

the Administrator as an amendment to this Supplemental Code and 

such other Codes. 

(b) To appoint a Regional Committee in each of such regions as 

the Divisional Code Authority may establish, to assist the Divisional 

Code Authority in administering this Supplemental Code; provided, 
6 

howeYer, that nothing herein shall relieYe the Divisional Code 

Authority of its responsibilities as such. 

( c) To organize, elect officers, hire em ploye,es, and perform such 

other net as may be nece sary for the proper administration of this 

Supplemental Code. 

4. Nothing contained in thi Supplemental Code shall constitute 

the members of the Divisional Code Authority partners for any purpo e nor shall any members of the Divisional Code Authority be liable 

in any manner to anyone for any act of any other member, officer, 

agent, or employee of the Divisional Code Authority. Nor shall any 

member of the Divisional Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liabl" to anyone for 

any action or omission to act, under this Supplemental Code, except 

:for his own wilful misfeasance or nonfeasance. 

5. If the Administrator shall determine that any action of the 

Divisional Code Authority or any agency thereof, may be unfair or 

unju t or contrary to the public interest, the Administrator 111.ay require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and for further consider- ation by such Divisional Code Authority or agency, pending final 

action, which shall not be effective unless the Administrator approves 

or unle s he shall fail to di approve after thirty days' notice to him 

of intention to proceed with such action in its original or modified 

form. 

ARTICLE IV-TRADE PRACTICES 

SUPPLEl\iE:NTIKG ARTICLE VII OF THE GENERAL CODE 

1. (a) Within 30 days after they are notified to do o by the 

Divi ional Code Authority members 0£ the Trade must file with it 

schedules of their sales prices on such of the different items 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. 

The e schedules may be changed by filing with the Divisiona.l Code 

Authority notice of such changes. 

(b) It shall be an unfair trade practice for a member of the 

Trade to sell or offer for sale goods at prices lower than those which 

he then has on file. 

( c) It shall be an unfair trade practice for any member of the 

Trade to fil~ a price as outlined in paragraph (a) or to sell or offer 

to ell any item for a price lower than the net invoice price plus 

incoming transportation costs to his warehouse, provided that 

. (~) A mem~er of the !racle may sell at a price less than the 

m1mnrn~ provided a~ove 111 o_rder to meet the price of a competitor 

whose pr~c~ ~oes not v10late th1s_secti~n. Such sales hall be reported 

to the D1v1 10nal Code Authority within three days after they are 

made. 

(2) Bona fide sale · for the purpo e ·of closina out discontinued 

obsolete, or distr s merch.a~dise may be made ~t such prices ancl 

upon such term and concht1011s as may b 0 necessary to effect their 

ale. Full details of such al s including the amount of such mer-
7 

chandi e on hand and the date of its purchase must be reported to 

the Divisional Code Authority before the date of such ale. (3) Nothing herein shall apply to sales rn.a<le lirectly or indirectly 

to a Federal or State government or any political sub-division 

thereof. 

( d) All filed price · hall be mattnrs of public record to all interested partie who pay to the Divi ·ional Code Authority the cost of 

furnishing the information desired. 

( e) When manufacturers of products distributed by this Trade 

through action of their respective code authorities hall have e tablished standard units as to grades, qualities, size, quantities, and 

counts in which standar l unit fabricated good · shall be offered for 

sale, and such units shall have been approved by the Administrator, 

price schedules fileLl by members of the Trade shall be in terms of 

the standard units o establi hed; but without respect to the manufacturers' designated prices. 

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

that this open price arrangement is being use l for the purpose of 

price fixing he may in di cretion u pend its operation or declare it 

permanently inoperative. 

2. The following shall be the maximum terms of redit to customers : 2%, 10 days, E. 0. M., 60 days net. 

3. The following uniform dating on seasonal goods hall prevail 

under this Supplemental Code February 1 t for Valentines, April 

1st for Easter goods, September 1st for school supplies, December 

1st for holiday goods. Subject to the approval of the Administrator 

the Divisional Code Authority shall have power to modify these 

uniform dating~ or to establish uniform datings on additional items 

or lines. 

The maximum cash discount terms which shall apply to such 

seasonal or dating orders shall be 2%, 10 day , 30 days net. 

4. Offering or giving special cash or trade di counts on mail 

orders better than given on orders taken by alesmen or through 

regular channel shall constitute a violation of this Supplemental 

Code. 

5. Quantity discounts shall be computed on the basis of the quantities shipped and/or billed to a single buyer. 

6. The offering or giving of prizes, premiums, or gifts in connection with the sale of products, or as an inducement thereto, by, 

any scheme which involv-es lottery, misrepresentation, or fraud will 

constitute a violation of this Supplemental Code, provided that 

nothing herein shall prevent the general distribution of prizes, 

premiums, or gifts commonly used for advertising except so far as 

they are actually given in a scheme which involves lottery, misrepresentation, or fraud. 

ARTICLE V-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price 

increases except such as may be required to meet individual cost 

should be delayed. But when made such increases should, so far 
8 

as pos ·ible, be limited to actual additional increases in the sellers' 

co. ts. 

ARTICLE VI-EFFECTIVE D ATE 

This Supplemental Code shall become effective on the 10th day 

after its approval by the A~ministrator. 

Approved Code No. 201-Supplement No. 6. 

Registry No. 400---06. 

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