Approved Code No. 201-Supplernent No. 2 Registry No. 410-A-04 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE WALLPAPER 

TRADE 

(A Division of the Wholesaling or Distributing Trade)-

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AS APPROVED ON MARCH 16, 1934 

\tiE DO OUR_.Pi'Rt 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

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

Printing Office, Washington, D.C., and by di trict offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 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, l\Iich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Ja cksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. Memphis, Tenn.: 229 Federal Building. 

l\Iinneapolis, Minn. : 213 Federal Building. 

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

New York, N .Y.: 734 Customhouse. 

Norfolk, Ya.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

P ortland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 09 ·Federal Office Building. 
Approved Code No. 201-Supplement No. 2 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE WALLPAPER TRADE 

As .Approved on March 16, 1934 

ORDER 

SuPPLEl\iENTARY CoDE OF F AIR COMPETITION FOR THE ,V HOLESALE 

WALLPAPER TRADE 

r, 

A DIVISION OF THE WHOLESALIKG 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 Wholesale Wallpaper 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 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, 

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 recommended : 

A. D. WHITESIDE, 

HUGH s. JOHNSON, 

AdministTator for I ndustrial R ecovery. 

Division .Ad1ninistrator. 

w ASHINGTON, D.C., 

March 16, 1934. 

46829°-425-91-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White H 01ise. 

Srn: This is a report of the Hearing on the Code of Fair Competition for the Wholesale ,v allpaper Trade, conducted in the Pan 

American Room of the l\iayflower Hotel, on November 16, 1933. 

The Code which is attached was presented by duly qualified and 

authorized representatives of the Trade, comply~ng with the statutory requirements, said to represent 62 percent in number and 

approximately 90 percent in volume of the Trade which could he 

included in this Code. 

THE TRADE 

The decline of the Trade in the past three years renders the census 

data obsolete. Aocording to statistics furnished by members of the 

Trade there are approximately 450 establishments with net sales of 

$19,000,000 in 1932 while the estimated sales in 1929 amounted to 

$30,000,000. The Trade employs about 2,700 persons. 

PROVISIONS OF THE CODE 

Since this code is supplemental to the General Code of Fair Competition for the vVholesaling or Distributing Trade, it contains no 

labor provisions. 

The provisions containing supplemental definitions are inclusive 

and accurate. 

The supplement to the administrative provisions establishes a 

Divisional Code Authority for the Trade, which is representative of 

the different elements in the Trade. According to the tatistics submitted by the Trade, the National 

"T allpaper vV110lesaler's A sociation contains among its members, or is authorized to represent in 

the administration of the code, 62 percent of the number of concern 

in the Trade. Its members sell approximately 90 percent of the total 

sales volume. The selection of five representatives of the Code Authority by the A sociation and two re.pre entafrve by nonmember. 

of the Association is repre entative of the Trade. 

Th trade practices proposed in the supplement to Articl VIII 

are n t in any respect objectionable. The provi i n o·overnino· th 

(li.-tribution and marking of sample b ok tabli. h uniform pra -

ticc. jn onn ·tion with the e a tivitie ancl are d ign d to Ir mote 

fair dealing in the Trade. 

FI DING 

Tlrn I c•puty clministrator in hi.' final r port t m on 

]1a,·j11cr found n.- li l''in .-C't forth an l m th ba ·i · oC all th pr 

j 11,r~ i11 U1i. niatt •r; 

(2) 

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I find that: 

(a) Said Co le is well de ·igned to promote the policie and purposes of Title I of the National Indu trial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign commerce which tends to dimini h the amount thereof and will provide 

for the general welfare by promoting tlie organization of in lu try 

for the purpose of cooperative action among the trade group , by 

inducing an l maintaining united action of labor and management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest po -

sible utilization of the present productive capacity of industrie , by 

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

agricultural products through increasing purcha ing 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 tl1at 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 

!;mall enterprises 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 approval of said Code. 

For these reasons this Su_pplemental Code has been approved. 

Respectfully, 

HuGH S. JOHNSON, .Ad11iinisfrator. 

MARCH 16, 1934. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE WHOLESALE WALL PAPER TRADE 

.A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPO,SES 

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

Supplemental Code of Fair Competition for the vVholesale vVall 

Paper 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 Wall Paper Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTING ARTICLE II OF GENERAL CODE 

The term "wholesaler " or "distributor", shall be defined as a 

person or firm, or definitely organized division thereof, definitely 

organized and rendering a wholesale distribution service in Wall 

Paper, which buys and n1aintains at his or its place of business a 

stock of "\Vall Paper which it distributes; and which, through salesmen, advertising and/ or sales promotion devices, sells to retailers 

and decorators, but which does not sell in significant amounts to 

ultimate consumers. 

The term "Divisional Code Authority", n used herein, hall 

mean the Divisional Code Authority for the "\Vholesale Wall Paper 

Trade, a division of the "\Vholesaling or Di tributing Trade. 

The term " General Code ", as used herein, shall mean the Code of 

Fair Competition for the ,vholesaling or Distributing Trade. 

J obs.-The term "Jobs" is defined to mean all unsold "\Vall 

Papers which have been in a line of a whole aler in any cmT nt 

year and which shall not be included in the line or lin~s of uch 

wholesaler in the succeeding current y ar. 

ARTICLE III- DMINI TRATION 

PLEl\rE ~TI G ARTI LE VI, SE 'TION 2 ( E) OF TUE GE ERAL C DE 

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(4) 
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AnTICLE IV-TRADE PRACTI ES 

SUPI~LE:MENTIN G ARTICLE YII OF THE GE ERAL CODE 

As expressly permitted in Article VIII, Section 2, of the Code of 

Fair Competition for the ,vhole aling or Di tributing Trade, the 

following practices constitute additional unfair methods of competition for members of the ,vholesale ,Vall Pa per Trade and are 

prohibited: 

1. Loss Limitation Provision.-Selling merchandise, except to 

other ,v all Pa per ,vholesaler , at less than co -t. Such cost shall 

include the actual net invoice purchase price, plus transportation 

charges to seller's warehouse; and further, "hen fixed and published 

from time to time by the Divisional Code Authority, subject to the 

approval of the Administrator; an allmTance for actual wages involved in effecting the sale and delivery of the goods by the wholesaler or distributor. 

Exceptions: N otwithstancling the provision of this c;;:ection, any 

wholesaler or distributor may sell any article of merchandise at a 

price as low as the price set by any competitor in hi. trade area on 

merchandise which is identical or e entially the same, if such competitor's price is s-et in confo_rmity with this provision. A wholesaler or distributor who thus reduce hi price to meet a competitor's 

price as above defined, shall not be deemed to have violated the 

provisions of this section if such wholesaler or di tributor immediately notifies the Divisional Code Authority of such action and all 

facts pertinent thereto; nothing in this section, however, shall 

apply to the sale of jobs, seconds, damaged goods or clo e-out . • 2. Sale of Jobs, etc.-The selling of current year's good as jobs, 

seconds~ damaged goods or close-outs, by any wholesaler or di tributor to any buyer, before the thirty-first day of December in any 

year. 

No jobs, seconds, damaged good or close-outs shall be sold by 

any wholesaler or distributor to any buyer at a price below. 331/3 % 

of the price quoted on new goods to buyers of the. same type. There 

shall be no restriction as to selling price of jobs after they have 

been out of the current year's line for more than one year. 

3. Selling Smnple Books B elow Oost.-The making of sample books 

for any customer and failing to include in the cost of said sample 

boo~s the cost of the ,v all Pa per used therein, charged at the same 

rate by said wholesaler or distributor to c;;:aid cu tamer as the goods 

said customer has purchased for stock, and in addition, any other 

expenses incurred in the making of said sample books. This shall 

not apply to one book known as " Book of Selections " furnished to 

a customer by a wholesaler or distributor with his order. No more 

than one sample book or "Book of Selections" shall be given to a 

customer by a wholesaler or distributor. 

4. Sample Book Mm·king.-Indicating, marking or printing" fair 

values " by any method other than plain dollars and cents figures. 

5. Issuance of Sarnple Books.-Issuance of current year's sample 

books to retailers or decorators before January 1 of any year. The 

term "current year" is defined to mean the twelve (12) months' 

period succeeding December 31 of each year. 
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6. Protection to Reta:ilers.-The selling of merchandise to ultimate 

consumers for personal use at wholesale prices, or the supplying of 

merchandise to industrial, civic, institutional or similar customers, 

for the personal use of employees of such concerns, at wholesale 

prices, thereby engaging in competition with retailers. 

7. Sample Book Distribution.-(a) To curtail waste due to the 

over-distribution of sets of sample books, stands, and/or other forms 

of collective sample showings, the quantity thereof distributed by any 

wholesaler or distributor during the period of the effectiveness of 

this Code, shall not exceed an amount equal to the average annual 

number of such sets distributed by said wholesaler or distributor 

during the five years immediately preceding January 1, 1934; except 

that if the five year average is less than in the year 1933, then said 

wholesaler or distributor may distribute in the year 1934 as many 

sets of ample book , stands, and/or other forms of collective sample 

showings as he did in the year immediately preceding. This method 

of computing the number that shall be distributed shall apply to 

each succeeding year during the e:ff ecti veness of this Code. 

(b) If reasonable requirement can be shown for the distribution 

of a greater number of such sets of sample books than herein provided for, privilege for such additional distribution or new distribution shall be given upon application to the Divisional Code Authority on evidence found by that Authority to justify such additional 

requirement, provided that any such finding of the Code Authority 

shall be subject to the review and disapproval of the Administrator. 

Nothing in paragraphs (a) and (b) above shall apply to a wholesaler or distributor annually issuing less than one hundred (100) 

sets of sample books. • 

8. Sample Book Marlcing.-(a) All sample books, stands, and/or 

other forms of collective sample showings shall have a "fair value" 

marked or printed on the back of every sample, plainly in dollars 

and cents per single roll or yard. This paragraph shall not be construed to establish the price at which a retailer or decorator shall sell 

the paper so marked. 

(b) All sample books, stands, and/or other forms of collective 

sample showings shall have the retailer's or decorator's net cost for 

room lot purcha es marked or printed by a uniform symbol, as 

adopted by the Divisional Code Authority. In no case shall this 

symbol appear except on the back of the sample, and not in any way 

as a part of either the pattern number or the marked or printed "fair 

value." (Paragraph (b) of this section not compulsory until after 

April 1 1934.) 

(c) dn fr1 walls and/or ceilings, the prices marked or printed in 

sample book and/or Floor Stand Books, shall be ba ed upon the 

unit roll a approved by the United States Department of 

m rce in mmer ·ial t ndard CS 16-29. On bord r , I ri 

b, quot d n the ba is of a single width lin al yard. 

(cl) 11 ·ample books f r free di tribution shall be mark l a 

b ,jnO' th prop rty of th whol sal r or di tributor i uino· aid b ol , 

and that the ar loan cl to the on rn t whom i ·n d for the 

J> rio<l <l . ·i<rnat d. Th titl t said sam1 le b ol s ·hall r main in the 

distributor or wh ] saler. 
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9. Freight Allowance.-In wholesale distribution of Wall Paper 

applying to dealers' purchases for stock, all wholesalers or distributors shall sell on the basis F.o.b. own warehouse, with no greater 

freight allowance than railroad freight equalization carload rat s 

or L.C.L. rates, as the ca e may be, to nearest competing whole aler 

or distributor or manufacturer to the customer being sold. No 

freight shall be prepaid by any wholesaler or distributor on dealers' 

purcha es for stock. This clause does not apply to purcha es in 

room lots when sold at advance prices above the whole aler's or 

di tributor's price for stock orders. 

10. T erms of Sale.-In wholesale distribution applying to dealers' 

purchases for stock, the terms shall be no more favorable than the 

following: 91 days net. Di count for cash payment 3%, 30 days; 

2%, 60 days; 1 %, 90 days. An additional deduc:tion to be allowed for 

cash payment within discounting periods for hipments made in 

September, 4%; in October, 3%; in November, 2% ; in December, 1 %. In wholesale distribution applying to dealers' purchases in room. 

lots, the terms shall be no more favorable than the following : Discount of not to exceed 3 % for cash payment 10th of the month following the date of purchase. 

11. Ungrounded Wall Paper.-In the interests of the ultimate 

consumer, all surface printed ~ Tall Papers in which the raw stock 

has not been fully grounded before the design ( top colors) is printed 

thereon, shown in sample books, stands and/ or other forms of collective sample showings, shall be plainly printed with the word "ungrounded" on the back of samples of such goods. No Wall Paper 

made on ungrounded stock shall be rn.arked in any way to indicate 

that it is a non-fading paper. 

ARTICLE V-EFFECTIVE DA TE 

This Supplemental Code shall become effective on the tenth day 

after approval. 

Approved Code No. 201, Supplement No. 2. 

Registry No. 410-A--04. 

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