Approved Code No. 201 Registry No. 1625-59 

, ,. 

NATIONAL RECOVERY ADMINISTRATION 

CODE O,F FAIR COMPETITION 

FOR THE 

WHOLESALING OR 

DISTRIBUTING TRADE 

AS APPROVED ON JANUARY 12, 1934 

BY 

. ..., __ "" 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

xecutive Order 

etter of Transmittal 

3. 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

Printing Offie:e, Washington, D.C., and by di trict offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Boston, Mass. : 1801 Customhouse. 

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Houston, Tex.: Chamber of Commerce Building. 

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Seattle, Wash.: 809 Federal Building. 
Approved Code No. 201 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALING OR DISTRIBUTING TRADE 

As Approved on January 12, 1934 

BY 

PRESIDENT ROOSEVELT 

Executive Or der 

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 my approval of a Code 

of Fair Competition for the "\Vholesaling or Distributing Trade, 

and hearings having been held thereon and the Admini trator having rendered his report containing an analysis of the said Code of 

Fair Competition together with his recommendations and findings 

with respect thereto, and the Administrator having found that the 

~aid Code of Fair Competition complies in all respects with the 

pertinent provi ions of Title I of said Act and that the requirements 

of clauses (1) and (2) of subsection (a) of Section 3 of the said 

Act have been met: 

NO\V, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by Title I of 

the National Indu trial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations and 

findings of the Administrator and do order that the said Code of 

Fair Competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

ApproYal recommended: 

HuGHS. JoHNSON, 

Ad1ninistrator. 

THE vV RITE HousE, 

J anum'y 12, 1934. 

(69) 

30228°----313- 2----34 
The PRESIDENT, 

The TV l~ite H oUJSe. 

Sm: This i a report of the Hearing on the Code o:f Fair Competition :for the Wholesaling or Distributing Trade, conducted in the 

Ballroom of the Mayflower Hotel, on November 13, 1933. The Code 

which is attached was presented by duly qua.lified and authorized 

representatives of the Trade, complying with the statutory requirements, said to represent 75 percent in number and over 80 perc-ent in 

volume of the Trade which could be included in this code. 

THE TRADE 

The vVholesale Trade according to the Census o:f Distribution 

(1929) is made up of 169,702 establishments with net sales o:f 

$69,291,545,000. However, a substantial portion of the wholesale 

trade comes under codes developed under the Agricultural Adjustment Administration, or previously covered under N.R.A. manufacturing and distribution codes. A net total of 45,043 establishments 

with net sales of $15,323,429,000 are under the Wholesaling or Distributing Trade Code as submitted. Approximately 460,000 employees are affected by this code. 

It is estimated that somewhat 1nore than 80 percent of the employees in the Trade were working more than 40 hours per week, 

40 percent more than 45 hours per week, and 20 percent more than 

48 hours per week. The 40-hour week provided in this code should 

result in an increase in total employment of between 10 and 15 percent. This should absorb about hal:f of the unemployment in the 

Trade as compared with 1929. 

PROVISIONS OF THE CODE 

The code provides :for a work week o:f 40 hours. Outside deliverymen, maintenance men, outside repair service men, and installation men are permitted to work 48 hours per week. Provision is 

made whereby an employer may work an employee such hours as 

may be necessary in excess of the hours mentioned above if time and 

one third is paid :for such additional hours per week. 

The rates of pay are $15.00 per week in cities of over 500,000 population, or in the immediate vicinity and $14.00 per week in cities 

of less than 500,000 population or in the immediate vicinity. The trade practices proposed in Article VII of the Code are not 

in any respect objectionable. Article VIII, Section 1, provides for 

the possibility of setting up price differentials ootween different 

classes of buyers, thus recognizing the :functional discount desired by 

(70 ) 

• 
71 

wholesalers and distributors. All actions of this type are with the 

advice and subject to the approval of the Administrator. 

The administration of the Code is organized in accordance with 

co:rr;tmodity divisions. 

FIN,DINGS 

I find that: 

(a ) The Code will promote the policies and purposes of Title I of 

the Act, including removal of obstructions to the free flow of inter- state and foreign commerce which tend to diminish the amount 

thereof and will provide for the general welfare by promoting the 

organization of indu try 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 supervisions, by eliminating unfair competitive practice , by promoting 

the fullest po sible utilization of the pre ent productive capacity of 

industries, by avoiding undue restriction of .production (except as 

may be temporarily required), by increasing the consumption of 

indu trial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor and otherwise rehabilitating industry. 

(b) Said Trade normally employs more than 50,000 employeetl; 

and is classified by me as a major industry. 

(c) The Code as approved complies in all re pects with the pertinent provisions of Title I of the Act, including without limitation 

Subsection (a) of Section 3, Sub ection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the 26 applicant groups 

are trade groups truly r epre entative of the aforesaid Trade; and 

that said groups impose no inequitable restrictions on admi sion to 

membership therein. 

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

or monopoli tic 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) 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, I recommend that the Code be approved. 

Respectfully, 

HuGHS. JoHNSoN, 

A d1T&inis trator'. 

JANUARY 1, 1934. 
CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Wholesaling or Distributing Trade, and 

shall be the standard of fair competition for such trade. 

ARTICLE II-DEFINITIONS 

Wholesaler or Distributo1·.-For the purposes of this Code, a 

"wholesaler" or "distributor" shall be defined as any individual, 

partnership, as ociation, corporation, or other firm, or a definitely 

organized division thereof, definitely organized to render and rendering a general distribution service, which buys and maintains at 

his or it place of business a stock of the lines of merchandise which 

it distributes; and which through salesmen, advertising, and/or salespromotion devices, sells to retailers and/ or to institutional, commercial, and/or industrial users; but which does not sell in significant 

amounts to ultimate consumers. Modifications or extensions to this 

definition or any part of it may be made for specific divisions when 

embodied in any appropriate supplemental code or when recommended by the appropriate Divisional Code Authority and approved 

, by the Administrator. 

The Trade.-The term " trade " is defined to be the business in 

which wholesalers or distributors engage. 

Ultimate Oonsumzr.-The term "ultimate consumer" as used 

herein is defined as a purchaser for home and personal use, and not 

for use or consumption in trade or business or by institutions. En~Jployees .-The term "employee" as used herein includes anyone engaged in the trade in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of such 

compen ation. 

Employer.-The term "employer" as used herein includes anyone 

by whom such employee is compensated or employed. 

President, Act, Administrator.-The terms "President," "Act," 

and "Admini trator" as used herein shall mean, respectively, the 

President of the United States, the National Industrial Recovery 

Act, and the Administrator appointed under Title I of said Act. 

Population for the purposes of this Code shall be determined by 

reference to the 1930 Federal Census. 

ARTICLE III-HouRs 

SECTION 1. Mawimu1n Hours and Exceptions.-(a) No wholesaler or distributor shall cause or permit any, employee, except an 

(72) 
73 

employee in an executive, supervisory, technical, or professional 

capacity who receives thirty-five dollars ($35.00) per week, or more, 

in cities of 500,000 population or over; or thirty dollars ($30.00) 

per week, or more, in cities of less than 500,000 population, and except 

watchmen and outside salesmen, to work more than forty (40) hours 

per week or to work more than six (6) days in any one week (or less 

as determined by the Code Authority of any specific trade), except 

that any member of the trade may cause or permit: 

(b) No employee except those exempted in paragraph (a) of this 

Section shall work more than eight (8) hours in any one day, except 

that on one day each week each employee 1nay work one extra hour, 

but such hour is to be included within the maximum hours permitted 

each week. 

(c) Outside deliverymen, maintenance men, outside repair service 

men and installation men to work forty-eight ( 48) hours per week. 

(d) Watchmen shall work not more than fifty-six (56 ) hours nor 

more than six ( 6) days in any 7 -day period. 

(e) An employer may work an employee such hours as may qe 

necessary in excess of the hours specified in paragraphs (a) and (c) 

of this Section if time and one third is paid for all such additional 

hours per week. 

(f) The hours worked by any one employee in any one day shall be 

consecutive with the exception of a reasonable period out for lunch. 

SEc. 2. E1nploy1nent by Several E1nployees.-N o employer shall 

knowingly perm.it any employee to wo~k for any time which, when 

totaled with that already performed with another employer or employers in this trade/ industry, exceeds the maximum permitted 

herein. 

ARTICLE IV-vv AGEs 

SECTION 1. Llfinimwm Rates of Pay.-The minimum rates of pay 

shall be as follows : 

(a) In cities of 500,000 population or over, or in the immediate 

vicinity thereof, at the rate of fifteen dollars ($15.00) per week. 

(b) In cities of less than 500,000 population, or in the immediate 

vicinity thereof, at the rate of fourteen dollars ($14.00) per week. 

(c) In the South at the rate of one dollar ($1.00) per week less 

than the rates specified above in paragraphs (a) and (b). 

The term "the South" means the following states: Virginia, West 

Virginia, North Carolina, South Carolina, Georgia, Florida, Kentucky, l\1aryland, District of Columbia, Tennessee, Alabama, l\Essissippi, Arkansas, Louisiana, Oklahoma, and Texas. 

(d) A part-time employee or one paid on an hourly bas]s shall be 

paid at an hourly rate not less than that obtained by dividing the 

appropriate minimum weekly wage specified for him in previous 

paragraphs of this Section by the appropriate maximum number of 

hours specified for him in Article III. 

\Yages paid during any period to employees on a piece-rate basis 

shall ~ggregate an hourly rate n?t less than that specified above for 

part-tune ~mployees and than paid on an hourly basis. 

(e) J unwr employees between the ap·es of 16 and 18 years inclusive, may ?e paid at the rate of two dollars ($2.00) less per ~eek than the mm1mum wage rate per week otherwise applicable to them 

for the first 12 months of their employment; and learners over 18 
74 

years of age may, for a period of three months from the date of their 

employment, be paid at the rate of one dollar ($1.00) less per week 

than the minimum wage per week otherwise applicable to them. 

The number of employees classified as juniors or learners combined 

shall not exceed the ratio of one such employee to every five employees or fraction thereof up to twenty (20) or more than one such 

employee for every t en (10), or :fraction thereof, employees above 

twenty (20). · (:f) Female employees performing substantially the same work 

as male employees shall have the same rate of pay as such male 

employees. 

(g) 'Vage ~hall be paid weekly or semimonthly in lawful money 

or by negotiable check. 

SEc. 2. No employ8 • whose normal full-time weekly hours prior 

to July 1, 1933, are reduced by less than 20% shall have his or her 

full-time earnings reduced. No employee whose normal full-time 

weekly hours are reduced 20% or more shall have his or her full-time 

weekly earnings reduced by more than 10% . 

. ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. Minimmn Age Requirements.-No person under 16 

years of age shall be employed by any wholesaler or distributor, nor 

anyone under 18 years of age, at operations or occupations hazardous 

in nature. The Code Authority shall submit to the Administrator 

within thirty days a list of such occupations. In any State an employer shall be deemed to have complied with this provision if he 

shall have on file a certificate or permit duly issued by the Authority 

in such State empowered to issue employment or age certificates or 

permits showing that the employee is of the required age. 

SECTION 2. E'mployces' R~ghts and Em-ployers' Dwties.-(a) Employees shall have the right to organize and bargain collectively 

through repre entatives of their own choosing, and shall be free from 

the interference, restraint, or coercion of employers of labor, or their 

agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective 

bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of 

his own choosing, and 

(c) Employers shall comply with the ma.ximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

SEc. 3. P1·ecedence of Stmte Laws.-N o provision in this Code 

shall supersede any State law which imposes on employer more 

stringent requirements as to age of employees, wage.-:;, hours of work, 

or as to safety, health, sanitary, or general working conditions, or 

insurance, or fire protection, than are imposed by tllis code. 

SEc. 4. R eclassification of Employees.-No employer shall recla -

sify employees or duties of occupations performed or engage in any 

other subterfuge for the purpose of defeating the purpo es or provisions of the Act or of this Code. 
75 

SEc. 5. Posting Oode.-Each employer shall post in conspicuous 

places, accessible to employees, copies of Articles I to V, inclusive, 

of this Code. 

AnTICLE VI-CoDES AND THE ADMINISTRATION THEREOF 

SECTION 1. General and Supplmnental Oodes.-(a) To provida an 

effective procedure for the administration of this code, and all codes 

supplemental thereto, the trade shall be divided into commodity divisions, as hereinafter provided. 

(b) Provisions governing wholesalers or distributors in all commodity divisions hall be included in this general code. 

(c) Provisions governing wholesalers or distributors in one or 

more, but not in all commodity divisions, may be embodied in a supplemental code for each division, after hearing before the Administrator and approval by the President. 

SEc. 2. Creation and Organization of General Wholesale and Divisio'JW;l Wholesale Oode Authorities.-(a) The creation of a General 

Code Authority to cooperate with the Administrator in the adminis- · 

tration of the provisions of the General Code is hereby authorized, 

and the creation of a Divisional Code Authority for each Division 

of the Trade to cooperate with the Administrator in administering 

the provisions of its Supplemental Code is hereby authorized. 

(b) For the purposes stated in this Section, the following Com .. 

modity Divisions are hereby provided: 1 

Beauty and Barber Supplies 

Buttons 

Charcoal and Packaged Fuel 

Cycle Jobbers 

Dry Goods 

Electrical Supplies 

Embroidery and Lace 

Floor Covering 

Furriers' Supplies 

Hardware 

Hats and Caps 

Jewelry (including Watchmakers' and Jewelers' Supplies) 

.Men's Novelty Jewelry 

l\1en's vVear Buttons 

Notion, Threatl & Women's Garments 

Supplies 

Radio 

School $upplies 

Sheet Metal 

Silverware 

Twine and Cordage 

Upholstery and Decorative Fabrics 

Wall Paper 

vVoolen and Trinuning Garment Supplies 

1 Others may be added from time to time and such furth er Divisions as the Administrator may find to be duly r epresl.'ntative. Provid ed that the Administrator, after 

due notice and bea ring, may amend these Divisious by enlarging or contracting them, or by consolidating or further dividing one or more of ·ucb Divisions. 
76 

(c) The General Code Authority shall consist of one or more members of each Divisional Code Authority, the precise number to be 

determined by the Administrator. Such members shall be elected 

by the members of each Divisional Code Authority in accordance 

with a fair method approved by the Administrator. The Administrator may appoint not more than three members, without vote, to 

serve for the term of six and twelve months, respectively, from the 

date of appointment. 

(d) Until such time as the General Code Authority is elected in 

the manner provided in the foregoing paragraph and until such time 

as a representative number of supplemental codes have been approved, the Administrator shall appoint one member of each Commodity Divi ion to act as a member of the General Code Authority. 

(e) The Divisional Code Authority for ea,ch Division shall be 

composed of not less than three (3) nor more than twenty-one (21) 

wholesalers or distributors, or representatives thereof, in such Division, who shall be elected, in accordance with a fair method, as pro- vided in the supplemental Code of each Division. The Administrator may appoint two members, without Yote, to serve for the term 

of six months respectively from the date of appointment. 

SEc. 3. Duties of Trade Associations-Code A1tthorities to be 

R epresentative.-(a) Each Trade Association directly or indirectly 

participating in the selection or activities of the General and/ or 

Divi ional Code Authorities shall: (1) impose no inequitable restrictions on membership, and (2) submit to the Aclmini. trator true 

copies of its articles of association, by-law regulations and any 

amendments when made thereof, together with such information as 

to n1.embership, organization, and activities as the Administrator 

may deem necessary to effectuate the purpose of the Act. 

(b) In order that the General and Divi ional Code Authorities 

shall at all times be truly r epresentative of the Trade and in other 

respects comply with the provisions of the Act, the Administrator 

may provide such hearings as he may deem proper; and, thereafter, 

if he shall find that the General Code Authority or any Divisional 

Code Authority is not truly r epresentative or doe not in any other 

respect comply with the provisions of the Act, may r equest an appropdate modification in the method of selection of any such Code 

Authority. 

SEc. 4. Assenting to Code and Payment of Cost of Administ?·a- tion.-\Vholesalers or distributors shall be entitled to participate in 

and share the benefits of the activities of their Divi ional Code Authority, and through such Divisional Code Authority to participate 

in and share the benefits of the activities of the General Code Authority, by as enting to and complying with the requiremenL of 

such Code and sustaining their rea onable share of the proper expenses of their administration. Such reasonable share of the proper 

expen es of the administration of the General Code Authority and 

of any divisional Code Authority hall be determined by each Authority, re pectively, ubject upon reYiew to the eli approval of the 

Administrator, on the ba is of volume of business, the number of 

DiYi, ions in which a member may operate, and the extent of his operations in each Division, and/ or such other factors as may be deemed 
77 

equitable to be taken into consideration. The share of the cost of 

such administration, as so equitably assessed, shall be collected by 

the several Divisional Code Authorities from the members of the 

Trade in their respective Divisions. 

Soo. 5. Powers of General and Divisional Code Authorities.-

(a) The General Code Authority shall have the power, subject upon 

review to the disapproval of the Administrator in addition to other 

powers herein granted : 

( 1) To coordinate the intBrests of the several divisions and the 

activities of the several Divisional Code Authorities so as to prevent conflicts of authority and to 1ninimize overlapping of powers; 

und 

(2) To hear all matters pertaining to the provisions of the General Code which may be submitted to it by any Divisional Code 

Authority; and 

(3) To attempt to adjust andjor to report the same to the Administrator ; and 

(4) To exercise any other general and lawful powers which may 

be necessary to secure performance of the provisions of the Act. 

(b) Each Divisional Code Authority shall have the followi1ig 

powers: 

First. vVith respect to the provisions of the General Code which 

govern all Divisions of the Trade, each Divisional Code Authority, 

subject to the approval or request of the General Code Authority: 

(1) Shall require from wholesalers or distributors in the Division which it represents such reports as are necessary to effectuate 

the purposes of the General Code ; and 

(2) May, upon its own initiative or complaint of any wholesaler 

or distributor in such Division, make investigations as to the functioning and observance of any provision of the General Code; and 

(3) May hear and attempt to adjust such complaints, and 

Provided, however, that any wholesaler or distributor who may 

be affected by the action or handling of matters pertaining to any 

provision of the General Code by his Divisional Code Authority, 

shall have the right to have such matter submitted to and considered by the General Code Authority for its action, as provided in 

Section 5 (a) of this Article. 

Second. With respect to the specific provisions of the Supplemental Codes which govern one or more, but not all, Divisions of the 

Trade, each Divisional Code Authority, subject to the approval or 

consent of the Administrator : 

(1) Shall require from wholesalers or distributors in its Division 

such reports as are necessary to effectuate the purposes of its 

Supplemental Code; and 

(2) May, upon its own initiative or complaint of any wholesaler 

or distributor in such Division, make investigation as to the functioning and observance of any provision of its Supplemental Code; and 

( 3) 1\·fay hear and attempt to adjust such complaints; and 

(c) In the event that a Divisional Code Authority should report 

any matter referred to in the" Second" part of the above paragraph 

to the Administrator which affects any provision of the General 

Code, the Administrator may if he desires refer such matter to the 
78 

General Code Authority for handling as if such matter had been 

directly submitted to the General Code Authority by such Divisional 

Code Anuthority, as provided in the " First" part of the above 

paragraph. 

SEc. 6. lnf01'mation for Governm~nt Agencies.-In addition to 

the information required to be submitted to the General Code 

Authority and to the Divisional Code Authorities, there shall be 

furnished to government agencies such statistical information as the 

Administrator may deem necessary for the purposes recited in 

Section 3 (a) of the Act. 

SEc. 7. Ad11~inistrative l nterpretations.-The Admini trator shall 

from time to time, after consultation with the General Code Authority and/ or with a Divisional Code Authority, i . ue such administrative interpretations of the various provisions of the General Code, 

or of any supplemental Code, respectively, as are necessary to 

effectuate their purpose. 

SEc. 8. Undue Hardships Imposed by Oodes.-Where the admin- istration of the provisions of the General Code impose an unusual 

or undue hardship upon any wholesaler or distributor, or upon any 

Divi ion, or where the administration of the provisions of any Supplemental Code imposes an unusual or undue hardship upon any 

wholesaler or distributor affected thereby, such wholesaler or distributor, or such division, may make application for relief to the 

Administrator, who, after such public notice and hearing as he may 

deem necessary, may grant such exceptions to or modifications of 

the provisions of the General Code, or of any Supplemental Code, 

as the case may be, as may be required to effectuate the purposes of 

the Act. 

ARTICLE VII-TRADE PRACTICES 

SECTION 1. Inaccurate Advertising.-N o member of the trade 

shall publish advertising (whether printed, radio, display, or of 

any other nature), which is misleading or inaccurate in any material particular, nor shall any member in any way misrepresent any 

goods (including, but without limitation, its use, trade-mark, grade, 

quality, quantity, origin, size, substance, character, nature, finish, 

material, content, or preparation) or credit terms, values, policies, 

services, or the nature or form of the bu iness conducted. 

SEc. 2. False Billing.-No member of the trade shall knowingly 

withhold from or insert in any quotation or invoice any statement 

that makes it inaccurate in any material particular. 

SEc. 3. I naccurate Labelling.-N o member of the trade shall brand 

or mark or pack any goods in any manner which is intended to or 

does dec ive or mislead purchasers with rec:::pect to the brand, grade, 

quality, quantity, origin, size, substance, character, nature, finish: 

material content, or preparation of such goods. 

SEc. 4. lnaccu•rate R efe1'enoes to Competitors, etc.-No member 

of the trade hall publish advertising which refers inaccurately in 

any material particular to any competitors or their gcods, prices, 

val'ue , credit term , policies, or services. 

SEc. 5. Threats of La1.0 Suits.-N o member of the trade ·hall publi h or circulate unjustified or unwarranted threat of legal proceedings '\\hich tend to or have the effect of harassing competitors or in-
79 

timidating their customers. Failure to prosecute in due course shall 

be evidence that any such threat is unwarranted or unjustified. 

SEc. 6. Secret Rebates.-No member of the trade shall secretly and 

directly offer or make any payment or allowance of a rebate, refund, 

commission, credit, unearned discount, or excess allowance, whether 

in the form of money or otherwise, nor shall a member of the trade 

secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose 

of influencing a sale. 

SEc. 7. Bribing Em.ployees.-No member of the Trade shall give, 

permit to be given, or directly offer to give, anything of value for 

the purpose of influencing or rewarding the action of any employee, 

agent or representative of another in relation to the business of the 

employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal, or 

party. Commercial bribery provisions shall not be construed to 

prohibit free and general distribution of articles commonly used for 

advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. . SEc. 8. I nterference with Another's Oontracts.-No wholesaler 

shall attempt to induce the breach of an existing contract between 

a competitor and his employee or customer or ource of supply; 

nor shall any such wholesaler interfere with or obstruct the performance of such contractual duties or services. 

SEc. 9. Oom·cion.-No member of the trade shall require that the 

purchase or lease of any goods be a prerequisite to the purchase or 

lease of any other goods. 

SEc. 10. Protection to R etailers.-It shall be an unfair trade practice for Wholesalers who secure a substantial portion of their business 

from members of the retail trade to enter into competition with retailers by selling merchandise at wholesale prices to ultimate consumers :for personal use or to sell to civic, institutional, and/ or simi- lar types of wholesale customers, merchandise for the personal use 

of employees of such customers. Nothing in this section, however, 

shall prevent bona fide sales by such wholesalers to their own employees of merchandise that is for the personal use of such employees. 

ARTICLE VIII-PERMISSIVE TRADE PRACTICES 

SECTION 1. Diffe1•entials.-In any division in which manufaGturers, 

importers, mill , or other primary sellers sell coincidentally to seYeral 

classes of buyer. the Divisional Code Authority, subject to the ap- proval and with the advice of the Administrator, may arrange for a 

conference of all interested parties, including primary sellers or the 

Code Authority governing them, for the purpo e of defining and 

establishing price differentials which shall be fair and reasonable in 

relation to the nature and extent of the distributing services and 

functions rendered by each buying cia s. Such differential. shall 

include all elements affecting the net price, such as discounts, terms, 

and allowances. 

The Divisional Code Authority, with the advice and consent o£ 

the admini b·ator and after all interested parties shall haYe been 

given an opportunity to be heard on the matter, shall formally an-
80 

nounce the price differentials which are deemed fair on specific products. When the Divisional Code Authority announce that a fair 

wholesale price differential has been established on any product by 

sources competent to adequately serve the wholesalers in the Division, 

then and thereafter, or until the Divisional Code Authority announces that such fair price differentials have been eli continued, it 

shall be an unfair trade practice for a wholesaler or distributor to 

handle such product unless the price at which it is sold to him allows 

or provides for such fair price differential. 

Nothing in this section shall be construed to abridge the right of 

manufacturers to sell direct to retailers or the right of retailers to 

buy direct from manufacturers. 

Nothing in this section shall be construed to prevent reasonable 

and fair price differentials from being allowed on the basis of quantity purchased or such other factors as the Administrator shall deem 

proper. 

SEc. 2. Other Unfair Trade Practices.-Subject to the approval of 

the President after hearing there may be established, in any Supplemental Code, trade practice rules covering such other subjects as 

conditions in its specific Division may require, together with regulations concerning such principles as loss limitation, selling below 

co t, price reporting. Any violation of these provisions shall be an 

unfair trade practice. 

ARTICLE IX-PrusoN-MADE GooDs 

P ending the formulation of a compact or code between the several 

states of the United States to insure the manufacture and sale of 

prison-made goods on a fair competitive basis with goods not so produced, the following provisions of this section will be stayed for 

ninety (90) days, or further at the discretion of the Administrator : 

(a) Where any penal, reformatory, or correctional institution, 

either by subscribing to the code or compact hereinbefore referred 

to, or by a binding agreement of any other nature, satisfies the 

Administrator that merchandise produced in such institution or by 

the inmates thereof will not be sold except upon a fair coinJ?etitive 

basis with simila.r merchandise not so produced, the provisiOns of 

Paragraph (b) hereof shall not apply to any merchandise produced 

in such manner in the institutions covered by such agreement. 

(b) Except as provided in the foregoing paragraph, no whole· 

aler or distributor shall knowingly buy or contract to buy any merchandise produced in whole or in part in a penaL reformatory, or 

correctional institution. After May 31, 1934, no wholesaler or distributor shall knowingly sell or offer for sale such merchandise. 

Nothing in this section, however, shall affect contracts, which the 

wholesaler or distributor does not have the option to cancel, made 

with respect to such merchandise before the approval of this code 

by the President of the United States. 

(c) Nothing in this section shall be construed to supersede or 

interfere with the operation of the Act of Congres approved J anuary 19, 1D29. being Pnbl1

ic, No. 669 of the 70th Congress and entitled 

"An Act to divest goods, \Yare , and merchandi e manufactured, produced or mined by convicts or pri ·oners of their interstate character 
81 

in certain cases", which Act is known as the Hawes-Cooper Act, or 

the provisions of any State legislation enacted under, or effective 

upon, the effective date of the aid Hawe -Cooper Act, the said 

effective date being January 19, 1934. 

ARTICLE X-MODIFICATION 

SECTION 1. This General Code and all codes . upplemental thereto, 

and all the provisions thereof, are expressly made ubject to the right 

of the President, in accordance with the provi ions of sub ection 

(b) of Section 10 of the Act, from time to time to cancel or modify 

any order, approval, license, rule, or regulation i sued uncler Title I 

of said Act and specifically, but without limitation, to the right of 

the President to cancel, or modify his approval of the e Codes or 

any conditions imposed by him upon his approval thereof. 

SEc. 2. This General Code and all codes supplemental thereto~ except as to provisions r equired by the Act, may be modified on the 

basi of experience or changes in circumst ance , such modification to 

be based upon application to the Administr ator and such notice 

and hearing as he shall specify, and to become effective on approval 

of the Administrator. · 

ARTICLE XI-MoNOPOLIEs 

No provision of this General Code, nor of any codes supplemental 

thereto, shall be so applied as to permit monopolies, or monopolistic 

practices, or to eli1ninate, oppress, or discriminate against small 

enterprises. 

ARTICLE XII-APPLICATION OF ConE 

Every wholesaler or distributor, except those who on the effective 

date of this code are governed by any other code of fair competition under the administration of the National Recovery Administration or the Agricultural Adjustment Administration, shall be 

bound by all the provisions of this General Code and by all the 

provisions of each and every Supplemental Code applicable to him, 

when such General Code and/ or such Supplemental Code or Codes 

shall have been approved by the President, except those wholesalers 

or distributors, who within sixty (60) days after the effective date 

of this Code file with the Administrator applications for exemptions 

to this code or any portion thereof, which after due consideration by 

the Administrator are sustained. 

ARTICLE XIII-EFFECTIVE DATE 

This General Code and all codes supplemental thereto shall become effective on the lOth day after date. 

Approved Code No. 2.01. 

Registry No. 1625-59. 

0 
UN IVERSITY OF FLORIDA 

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