Approved Code No. 201-Supplement No. 20 Registry No. 1308-06 

-

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

ELECTRICAL WHOLESALE 

TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON AUGUST 13, 1934 

'WI DO OUR PART 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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I I I 1. l 

I I 

For sale by the Superintendent of Documents, Washington, D.C. - P rice 5 ce nts 
This publication is for sale by the Superintendent of Documents, Government 

f rioting Office, Washington, D.C., and by district 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 Custom.hou:se. 

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

Charleston, S.C.: Ch:.tmber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cle>elaod, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce lluilding. 

Indian::tpoll::;, Ind.: Chamber of Commerce Building, 

Jacksonville, 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. 

Minneapolis. Minn.: 213 Federal Builtllng. 

New Orleans, La.: Room 2:25-A, Customhouse. 

New York. N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 Enst Plume Street. 

Philadelphia. Pn.: 4:..!2 Commercial Trust Building. 

Pittsburgh. Pa.: Chamber of Commerce .Building. 

Portland, Oreg. : 2J 5 1\ ew Post Office Building. 

St. Louis, Mo.: fi06 Olh·e Street. 

San Francisco, Calif.: 310 Cu~tomhon~e. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 201-Supplement No. 20 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

ELECTRICAL WHOLESALE TRADE 

As Approved on August 13, 1934 

ORDER 

SuPPLEMENTARY ConE OF F .AIR CoMPETITION FOR THE ELECTRICAL 

WHOLESALE TRADE 

A DIVISION OF THE WHOLES.AUNG OR DISTRIBUTING TR.ADE 

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 Electrical "Tholesale 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 Supplenrental Code, containing findings with 

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

NOW, 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. 

HuGHS. JoHNsoN, 

Administrator for I ndU8trial Recovery. 

Approval recommended: 

RoBERT L. HousToN, 

Division Ad111inistrator. 

w .ASHINGTON, D.C., 

Augu.st 13, 1934. 

80259°----1044-73----34 (1) 

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REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

of Fair Competition for the Electrical vVholesale Trade, a division 

of the 'Vholesaling or Distributing Trade, held in the Sun Parlor of 

the Washington Hotel, on January 10, 1934. The Supplemental 

Code, which is attached, was presented by duly qualified and authorized r epresentatives of the Trade, complying with the statutory 

requirements. 

THE TRADE 

According to statistics furnished by members of the Trade it is 

estimated that in 1933 there were approximately 950 concerns engaged in the Trade, which will come under the proposed definition in 

this Supplemental Code. These concerns did an estimated business 

of $150,000,000, and employed approximately 14,000 persons. 

HOURS .AND WAGES 

This Code is supplemental to the Code of Fair Competition for 

the Wholesaling or Distributing Trade and contains no hours and 

yvages provisions, the members of the Trade being governed by the 

hours and wages provisions of the last mentioned Code. 

OTHER PROVISIONS OF THE CODE 

The provisiOns containing supplementary definitions are considered inclusive and accurate. 

The supplement to the administrative provisions of the Code of 

Fair Competition for the ,;vrholesaling or Distributing Trade estab· 

lishes a Divisional Code Authority which is fairly and adequately 

representative of all the different elements in the Trade. 

The Trade Practice Provisions are not considered in any way 

objectionable. 

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 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 

and foreign commerce which tend to diminish the amount thereof, 

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

(2) 

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zation of industry for the purposes of cooperative action among 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting 

the fullest possible use of the present productive capacity 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 50,00J employees and 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 to membership therein. 

(d) The Supplemental 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 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 the approval of 

this Supplemental Code. _ For these reasons the Supplemental Code has been approved. 

Respectfully, 

AuGUST 13, 1934. 

HuGHS. JoHNsoN, 

Administrator. 
SUPPLEl\1:ENTARY CODE OF FAIR COMPETITION FOR 

THE ELECTRICAL WHOLESALE TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of th(} National Industrial 

Rec.:oYery Ad, this Supplemental Code is established as a Code 

of Fair Competition for the Electrical Wholesale Trade, pursuant 

to Article VI, Section 1 (c) of the General Code of Fair Competition 

for the \Vholesaling 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 specifically incorporated by 

reference in this Supplemental Code and made part hereof. Such 

provisions of the General Code together wit~ the prov:i~ions of this 

Supplemental Code are the standards of fa1r competitiOn for and 

are binding upon every member of the said Electrical Wholesale 

Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTING ARTICLE ·n OF GENERAL CODE 

SECTION 1. For the purposes of this Supplemental Code, a "wholesaler " or " distributor " or " member of the Trade " is defined to 

mean any individual, partnership, association, corporation, or other 

form of enterprise, or any division thereof, which renders a general 

distribution service and which purchases and maintains at his or 

its place of business a stock of electrical apparatus, appliances, materials and/ or supplies sold for use in connection therewith (except 

radio apparatus and supplies), or which acts as a middleman or 

broker buying electrical apparatus, appliances, materials and/ or 

supplies sold for use in connection therewith (except radio apparatus and supplies) but which does not necessarily maintain a stock 

of such merchandise, and which through salesmen, advertising, 

and/ or sales-promotion devices, sells to retailers and/ or to institutional, commercial, and/ or industrial users, and/ or to any other 

buyers except ultimate consumers as defined in the General Code. 

SECTION 2. The term " Trade " as used herein is defined to be the 

business in which wholesalers or distributors as above defined engage. 

SECTION 3. The term " consignment " as used herein is defined to 

mean the delivery by a memb-er of the Trade to any person, as agent, 

purchaser or otherwise under any agreement or understanding expressed or implied pursuant to which the receiver of the m.erchandise may at his option return any of such merchandise or claim any 

credits with respect thereto. 

(4) 
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SECTION 4. The terl'!l "Divisional Code Authority", as used herein, 

shall mean the Divisional Code Authority for the Electrical Wholesale Trade, a division of the 'Vholesaling or Distributing Trade. 

SECTION 5. The term " General Code ", as used herein, shall mean 

the Code of Fair Competition for the Wholesaling or Distributing 

Trade. 

ARTICLE III-ADl\fiNISTRATIO:N 

SUPPLEMENTING ARTICLE VI, OF THE GENERAL CODE 

SECTION 1. (a) The Divisional Code Authority shall consist of 

eleven (11) members (from among the Trade or representatives 

thereof,) eight (8) to be nominated by the Executive Committee of 

theN ational Electrical Wholesalers Association and elected by members of the Trade who are also members of the Association in accordance with a method to be approved by the Administrator, and 

three (3) to be chosen by those members of the Trade who are not 

members of such Association, by a method to be approved by the 

Administrator. No member of the Trade shall have more than one 

member on the Divisional Code Authority. 

(b) Only those members of the Trade 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. 

SECTION 2. 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 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 in each Electrical Wholesale District, as determined by the Divisio~al Code Authority subject to the approval 

of the Administrator, a Code Commission to as ist the Divisional 

Code Authority in administering this Supplemental Code; provided, 

however, that nothing herein shall relieve the Divisional Code Authority of its responsibilities as such. 

(c) To organize, elect officers, hire necessary employees and perform such other acts as may be necessary for the proper administration of this Supplemental Code. 

( cl) To adopt by-laws, 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 
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herein; provided, however, that nothing herein shall relieve the 

Divisional Code Authority of its duties and 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. 

(f) 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, 

members of the Trade subject to this Supplemental Code shall 

furnish such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3 (a) of the Act to 

such federal and state agencies as he may designate; proyided that 

nothing in this Supplemental Code shall relieve any member of the 

Trade of any existing obligation to furnish reports to any government agency. No individual report shall be disclosed to any other 

member of the Trade or any other party except to such other governn1ent agencies as may be directed by the Administrator. 

SECTION 3. 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 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 liable to anyone for any action or omission to act under this 

Supplemental Code, except for his own wilful malfeasance or 

nonfeasance. 

SECTION 4. If the Administrator shall determine that any action 

of the Divisional Code Authority or any agency thereof7 may be 

unfair or unjust or contrary to the public interest, the Adnunistrator 

may require that such action be suspended to afford an opportunity 

for inve ti~ation of the merits of such action and for further consideration by such Divisional Code Authority or agency, pending 

final action which shall not be effective unless the Administrator 

approves {Jr unless he shall fail to disapprove after thirty days' 

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

or 1nodified form. 

SEadoN 5. It L--eing found necessary, in order to support the administration of this Supplemental Code and to maintain the standards of fair competition established by 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 obliaations· as are necessary 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 necessary: 

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

purposes, and (2) an equitable basis upon which the funds necessary 

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

( c After .such budget and basis of contribution have been approved by the Administrator, to determine and secure equitable 
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contribution 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) Each member of the Trade shall pay his or its equitable 

contribution to the expenses of the maintenance of the 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, 

unless duly exempted from making such contribution, shall be 

entitled to participate in the selection of members of the 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 

Administration. 

(e) 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. 

ARTICLE IV-TRADE PRACTICES 

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 

SECTION 1. It shall be an unfair trade practice for any member 

of the Trade to quote a lump sum price unless such quotation shows 

the price of each item and unless the total equals the sum of all 

the items. 

SECTION 2. Quantity discounts shall be computed on the basis o·f 

the quantities shipped and/ or billed to a single buyer at one time; 

provided, however, that when a wholesaler's stock of an item is not 

sufficient to make a complete shipment a second shipment may be 

made from the wholesaler's or a manufacturer's stock, and the quantity discounts computed on the basis of the original order. 

SECTION 3. It shall be an unfair trade practice for any member 

of the Trade to deliver merchandise to any customer beyond the 

metropolitan area of the city within which the distributor is located 

without making a charge equal to that made by a common carrier 

for the said delivery; provided, however, that transportation costs 

may be equalized by any individual member of the Trade acting 

independently as between recognized wholesaling centers. Where 

necessary, the Divisional Code Authority at the request of the Code 

Commission, subject to the approval of the Administrator, shall 

define the metropolitan areas within a district. 

SECTION 4. It shall be an unfair trade practice to ship any goods 

on consignment except products of manufacturers whose general 

plan of distribution is by consignment and not by sale for resale, 

and except where the Divisional Code Authority under unusual 

circumstances may allow. 

SECTION 5. It shall be an unfair trade practice to accept returned 

goods after sixty days from the date of shirment, or to accept returned goods within such sixty day period~ without making a service 
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'charge at least equal to the seller's cost of handling the same; 

provided, however, that this section shall not apply: (a) if the 

occasion for the return is the fault of the member of the Trade; or 

! (b) if such credit is made on account of insolvency or financial embarrassment of the customer and is reported to and approved by 

the Divisional Code Authority; or (c) to the extent that this Section 

n1ay conflict with the law of any State. 

SECTION 6. It shall be an unfair trade practice for any member 

of the Trade to sell any electrical apparatus, appliances, materials 

and/or supplies sold for use in connection therewith (except radio 

apparatus and supplies) governed by this Supplemental Code from 

which the name plate, senal number, or any other identifying mark 

of the manufacturer, if any is customarily attached, has been effaced 

or removed. 

SECTION 7. It shall be an unfair trade practice for any member of 

:the Trade to employ subterfuge, directly or indirectly, to avoid 

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

, purposes and intent of the National Industrial Recovery Act, which 

·are to increase employment, provide better wages, promote fair competitive methods, better business conditions, and promote the public 

welfare. 

:' SECTION 8. It shall be an unfair trade practice for a member of the 

; Trade to grant to a customer a discount for cash at a percentage 'greater than the percentage of discount for cash received by such 

1nember of the Trade on the same merchandise, or to allow extra 

discounts for anticipation of payment, or to allow a discount for . cash on accounts remaining unpaid after the tenth of the calendar 

month following date of shipment, or to grant any discount for 

cash where payment is made by warrant, note or trade acceptance. 

SECTION 9. It shall be an unfair trade practice to pay or absorb 

any charge :for sales promotion material of any nature furnished 

by the manufacturer through the medium of the wholesaler to the 

dealer; provided, nothing contained herein shall prohibit bona fide I cooperative advertising. 

ARTICLE V-PERMISSIVE 'I:RADE PRACTICES 

SECTION 1. In any Trade Area, if a majority in numbers and vol-

~ ume of all known members of the Trade in said Area vote in favor 

:of establishing uniform operating hours~ such a schedule of uniform . operating hours may be recommended t11rough the Divisional Code 

; Authority to the Administrator for approval. After approval by 

·the Divisional Code Authority and the Administrator, after such 

;notice and hearing as the Administrator may pres~ribe, said uniform 

hours shall be binding upon all members of the Trade in such Trade 

;Area. 

ARTICLE VI-MoDIFICATION 

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

with the provisions of Subsection (b) of Section 10 of the National 

I ndustrial Recovery Act :from time to time to cancel or modify any 

order, approval, license, rules or regulations issued under Title I 

of said Act. 
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ARTICLE VII-EFFECTIVE DATE 

This Supplemental Code shall become effective on the lOth day 

after its approval by the Administrator, and thereupon the provisions 

of the Code of Fair Competition for the Industrial Supplies and 

DistributinO' Trade shall become inapplicable as to any activities of 

members of the Electrical Wholesale Trade as hereinbefore defined, 

which are covered by this Supplemental Code.. 

Approved Code No. 201-Supplement No. 20. 

Registry No. 1308-06. 

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UNIVERSITY OF FLORID A 

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