V 
 
 Approved Code No. 201 — Supplement No. 12 
 
 Registry No. 1698—1—03 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 SUPPLEIVIENTARY 
 CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 SCHOOL SUPPLIES 
 AND EQUIPMENT TRADE 
 
 (A Division of the Wholesaling or Distributing Trade) 
 AS APPROVED ON JULY 5, 1934 
 
 
 WE DO OUR PART 
 
 UN 
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 ■ '•'«TO??Y 
 
 UNITED STATES 
 
 GOVERNMENT PRINTING OFFICE 
 
 WASHINGTON : 1934 
 
 For sale by the SaperiDtendent of Docoments, Washington, D.C. ....--■• Price 5 cents 
 
This publication is for sale by the Superintendent of Documents, Government 
 Printing Office, Washington, D.C, and by district ofiices of tlie Bureau of 
 Foreign and D:meslic Commerce. 
 
 DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 
 
 Atlanta, Ga. : 504 Post Office Building. 
 Birmingham, Ala. : 257 Federal Building. 
 Boston, Mass. : ISOl Customhouse. 
 Buffalo, N.Y. : Chamber of Commerce Building. 
 Charleston. S.C. : Chamber of Commerce Building. 
 Chicago, 111. : Suite 1706, 201 North Wells Street 
 Cleveland, Ohio : Chamber of Commerce. 
 Dallas, Tex. : Chamber of Commerce Building. 
 Detroit, Mich. : 801 First National Banli Building. 
 Houston, Tex. : Chamber of Commerce Building. 
 Indianapolis, Ind. : Chamber of Commerce Building. 
 Jacksonville, Fla. : Chamber of Commerce Building. 
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 Los Angeles, Calif. : 1163 South Broadway. 
 Louisville, Ky. : 408 Federal Building. 
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 Minneapolis, Minn. : 213 Federal Building. 
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 New York. N.Y. : 734 Customhouse. 
 Norfolk, Va. : 406 East Plume Street. 
 Philadelphia, Pa.: 422 Commercial Trust Building 
 Pittsburgh. Pa.: Chamber of Commerce Building. 
 Portland, Oreg. : 215 New Post Office Building. 
 St. Louis. Mo. : 506 Olive Street. 
 San Francisco, Calif. : 310 Customhouse. 
 Seattle. Wash.: 809 Federal Office P.uilding 
 
Approved Code No. 201 — Supplement No. 12 
 SUPPLEMENTARY CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 SCHOOL SUPPLIES AND EQUIPMENT TRADE 
 As Approved on Joly 5, 1934 
 
 ORDER 
 
 Supplementary Code of Fair Competition for the School Supplies 
 AND Equipment Trade 
 
 A division of the wholesaling 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 Supple- 
 mental Code of Fair Competition for the School Supplies and • 
 Equipment Trade to the Code of Fair Competition for the Whole- 
 saling or Distributing Trade, and hearings having been duly held 
 thereon and the annexed report on said Supplemental Code, contain- 
 ing 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 Pres- 
 ident, including Executive Order No. 6543-A, dated December 30, 
 1933, and otherwise; do hereby incorporate by reference said an- 
 nexed 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 ap- 
 proved ; provided, however, that the provisions of Article V, Section 
 1 (a), insofar as they prescribe a waiting period between the filing 
 with the Code Authority (i.e. actual receipt by the Code Authority) 
 and the eifective date of revised price lists or revised terms and 
 conditions of sale be, and they are hereby stayed pending my further 
 order; and provided, further, that the provisions of Section 2, 
 Article V, are approved for a period of ninety (90) days only, 
 subject to further order at that time as a result of study made of the 
 operation of said provisions. 
 
 Hugh S. Johnson, 
 Admimstrator for Industrial Recovery. 
 
 Approval recommended : 
 R. L. Houston, 
 
 Division Admin istrator. 
 
 Washington, D.C, 
 
 Jidy J, 103Ji. 
 
 72196° 820-23 34 1 (1) 
 
EEPORT TO THE PRESIDENT 
 
 The Presiden-t, 
 
 The White House. 
 Sir: This is a report of the Hearing on the Supplemental Code 
 of Fair Competition of the School Supplies and Equipment Dis- 
 tributing Trade, conducted in Room 127 of the Willard Hotel, on 
 April 19, 1934, The Supplemental Code, which is attached, was 
 presented by duly qualified and authorized representatives of the 
 Trade. 
 
 THE TRADE 
 
 Due to the considerable overlapping of this Trade in others, accu- 
 rate statistics are not available. According to data submitted oy the 
 Trade, in 1933 there were approximately three hundred establish- 
 ments with aggi-egate annual sales of $45,000,000. The Trade em- 
 ployed about fifteen thousand people. In 1929 there were two hun- 
 dred and seventy-five establishments employing twenty-seven thou- 
 sand people with aggregat-e annual sales of $110,000,000. 
 
 PRO^TLSIOXS OF THE CODE 
 
 This Code contains no Supplemental Labor Provisions, the em- 
 ployees being subject to the wage and hour provisions of ih^ Code of 
 Fair Competition for the Wholesaling or Distributing Trade. 
 
 The provisions containing supplemental definitions are considered 
 inclusive and accurate. 
 
 The administrative provisions establish a Divisional Code author- 
 ity which fairly represents all the different elements in the Trade. 
 
 The Trade practices proposed are not considered to be objection- 
 able. However, some controversy has been raised in connection with 
 the provisions covering price differentials. These provisions are de- 
 signed to secure cooperation of the producer, which is necessary to 
 effectuate their intent. These provisions have been subject to rigid 
 analysis, and it is felt that the results give very adequate consumer 
 protection. 
 
 FINDINGS 
 
 The Deputy Administrator in his final report to me on said Sup- 
 plemental 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 organiza- 
 
 (2) 
 
tion of industry for the purpose of cooperative action among trade 
 gi'oups, 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 tempo- 
 rarily required), by increasing the consumption of industrial and 
 agricultural products through increasing purchasing power, hj re- 
 ducing 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 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) or 
 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. 
 
 (d) The Sup})Iemental Code is not designed to and will not permit 
 monopolies or monopolistic practices. 
 
 (e) The Supplemental Code is not designed to and will not elimi- 
 nate 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, 
 
 Hugh S. Johnson, 
 
 AdfRinistrator, 
 July 5, 1934. 
 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
 THE SCHOOL SUPPLIES AND EQUIPMENT TRADE 
 
 A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 
 
 Article I — Purposes 
 
 To effectuate the policies of Title I of the National Industrial 
 Recovery Act, this Su})plemental Code is established as a Code of 
 Fair Competition for the School Supplies and Equipment Distribut- 
 ing Trade pursuant to Article VI, Section 1 (c) of the Code of Fair 
 Competition for the Wholesaling or Distributing Trade, approved 
 by the President of the United States on January 12, 1934. All pro- 
 visions of the said General Code which are not in conflict with the 
 provisions of this Supplemental Code are hereby incorporated by 
 reference in this Supplemental Code and made a part hereof. Such 
 provisions of the General Code, together with the supplementing 
 provisions of this Code are the standards of fair competition for and 
 are binding u])on every member of said School Supplies and Dis- 
 tributing Trade. 
 
 Article II — Definitions 
 
 (SUPPLEMENTING ARTICLE II OF THE GENERAL CODE) 
 
 Section 1. Distributor or Wholesaler. — The term " Distributor or 
 "Wholesaler ", as used herein, shall mean any individual, partnership, 
 association, corporation, or other form of enterprise or definitely 
 organized division thereof, set up to render and rendering a general 
 distribution service which buys and maintains at his or its place of 
 business a stock of school supplies and equipment, and which through 
 salesmen, advertising and/or sales promotional devices, sells to insti- 
 tutional and/or commercial users and/or incidentally to retailers, 
 but which does not sell in significant amounts to ultimate consumers. 
 
 Section 2. School Supplies and Equipinent. — The term " School 
 Supplies and Equipment , as used herein, shall mean such supplies 
 and equipment as are used by pupils, teachers, administrators, and 
 general employees of Boards of Education in their respective 
 capacities as such. 
 
 Section 3. Divisional Code Authority. — The term " Divisional 
 Code Authority ", as used herein, shall mean the Divisional Code 
 Authority for the School Supplies and Equipment Distributing 
 Trade, a Division of the Wliolesaling or Distributing Trade. 
 
 Section 4. General Code. — The term " General Code ", as used 
 herein, shall mean the Code of Fair Competition for the Wholesal- 
 ing or Distributing Trade. 
 
 Section 5. The Trade. — The term " The Trade " as used herein, 
 shall mean the business in which wholesalers or distributors of school 
 supplies and equipment are engaged. 
 
 (4) 
 
Section G. Mcmhcr of the Trade. — The term " member of the 
 Trade ", as used herein, shall mean any wholesaler or distributor 
 en<raged in the trade. 
 
 Section 7. Association. — The term " Association ", as used herein, 
 shall mean the National School Supplies and Equipment Association. 
 
 Section 8. Blind Bid. — The term " Blind Bid ", as used herein, 
 shall mean an offer by a seller to meet or to better the price quoted 
 in the lowest bid received for any specific order or bill of goods or 
 in any other case where bids are requested. 
 
 Article III — Administration 
 
 (SUPPLEMENTING ARTICLE \T OF THE GENERAL CODE) 
 
 Section 1. The Divisional Code Authority of the School Supplies 
 and Equipment Distributing Division shall be composed of thirteen 
 (13) members. 
 
 Seciton 2. (a) The Executive Secretary of the Association shall 
 be ex officio a member of the Divisional Code Authority. 
 
 (b) The remaining twelve (12) members of the Divisional Code 
 Authority shall be elected as follows: 
 
 1. The Executive Committee of the Association shall nominate 
 one candidate for ea^h of the eight (8) Regional Districts into 
 which the Association has divided the United States and which are 
 set forth in detail in Schedule A of this Supplemental Code. 
 
 2. The Administrator shall also nominate four candidates at 
 large. These four candidates shall not be members of the 
 Association. 
 
 3. The Executive Committee shall send to every member of the 
 Trade discoverable b}' diligent search ballots containing the names 
 of these candidates. The ballots shall also contain blank spaces 
 in which voters may write their personal choices. Each voter shall 
 vote for one candidate from his Regional District and for four 
 candidates at large. 
 
 4. To each ballot shall be attached a statement of assent and com- 
 pliance to this Supplemental Code, and to the General Code. 
 
 5. Twenty (20) days after the mailing of these ballots the Execu- 
 tive Committee of the Association shall publicly count those votes 
 which have been returned to it. Only those ballots shall be counted 
 which have attached to them signed statements of assent and com- 
 pliance. The candidate receiving the largest number of votes in 
 each Regional District, and the four candidates at large receiving 
 the largest number of votes shall be elected. No votes for candidates 
 at large who are members of the Association shall be counted. 
 
 6. The Executive Committee shall certify to the Administrator 
 the method of conducting the election and the result of the same. 
 
 Section 3. 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 
 bylaws of the Divisional Code Authority. 
 
 Section 4. The Divisional Code Authority shall have the follow- 
 ing duties and powers, in addition to those prescribed in the Gen- 
 eral Code, subject to such rules and regulations as may be issued 
 from time to time by the Administrator: 
 
(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 emploj^ers under this Supplemental Code and under such 
 others, to the end that such Fair Trade Practices may be proposed 
 to the Administrator as amendments to this Supplemental Code 
 and such other Codes. 
 
 (b) To appoint a Regional Committee or agent in each of such 
 regions as the Divisional Code Authority may establish with the 
 approval of the Administrator to assist the Divisional Code Author- 
 itj?^ in administering this Supplemental Code and the General Code: 
 provided, however, that nothing herein shall relieve the Divisional 
 Code Authority of its responsibilities as such. 
 
 (c) To organize, elect officers, hire emploj-ees, appoint agents, and 
 perform such other acts as may be necessary for the proper adminis- 
 tration of this Supplemental Code and the General Code. 
 
 (d) To adopt by-laws and rules and regulations for it3 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 
 herein, provided that nothing herein shall relieve the Divisional 
 Code Authority of its duties or responsibilities under tliis Supple- 
 mental 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 mem- 
 bers of the Trade subject to this Supplemental Code shall furnish 
 such statistical information as the Administrator may deem neces- 
 sary for the purposes recited in Section 3 (a) of the Act, to such 
 federal and state agencies as he may designate; provided that noth- 
 ing in this Supplemental Code shall relieve any member of the Trade 
 of any existing obligations to furnish reports to any governmental 
 agency. No individual report shall be disclosed to any other member 
 of the Trade or any other party except to such other governmental 
 agencies as ma}^ be directed by the Administrator. 
 
 (g) To appoint, within one month after the effective date of the 
 Supplemental Code, a committee so constituted as to give producer, 
 consumer, and governmental representation satisfactory to the Ad- 
 ministrator, to make a study with a view to the establishment of 
 classifications and standards of quality of staple products of the 
 Trade, wherever such standards are deemed feasible. The findings 
 and recommendations of this committee shall be submitted to the 
 Administrator, within one year, and after such hearings and investi- 
 gations as he may designate, and upon approval by him, shall be 
 made a part of this Supplemental Code and be bincling upon every 
 member. 
 
 (h) To from time to time suggest modifications of and/or amend- 
 ments to this Supplemental Code and to assent to such modifications 
 and/or amendments and to the Supplemental Code in its final form 
 as modified and/or amended. 
 
Section. 5. Xothing contained in this Supplemental Code shall 
 constitute the members of the Divisional Code Authority partners 
 for any purpose nor shall any members of the Divisional Code 
 Authority Ije liable in nnj 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 Author- 
 ity, exercising reasonable diligence in the conduct of his duties here- 
 under, be liable to anyone for any action or omission to act, under 
 this Supplemental Code, except for his own willful misfeasance or 
 nonfeasance. 
 
 Sectiox G. If the Administrator shall determine that any action 
 of the Divisional Code Authority or any agency thereof, may be 
 unfair or unjust or contrary to the public interest, the administrator 
 may require that such action be suspended to afford an opportunity 
 for investigation of the merits of such action and for further con- 
 sideration of such Divisional Code Authority or agency, pending 
 final action, which shall not be effective unless the Administrator 
 approves or unless he shall fail to disapprove after thirty days' 
 notice to him of intention to proceed with such action in its original 
 or modified form. 
 
 Sectiox 7. The Divisional Code Authority shall appoint one or 
 more of its members to a committee which shall constitute a co- 
 ordinating committee between this trade and any other trade for 
 which a supplemental code under the General Code has been ap- 
 proved, if, and when the Divisional Code Authority for said other 
 trade shall appoint one or more members to the said committee. 
 The Divisional Code Authority of this trade shall delegate to this 
 co-ordinating committee, if and when established, such of its powers 
 as may be necessary to co-ordinate the administration of this Sup- 
 plemental Code with the administration of such other supplemental 
 code so as to provide for administration which shall be fair and 
 equitable to each trade. 
 
 Section 8. It being found necessary, in order to support the ad- 
 ministration of this Supplemental Code and to maintain the stand- 
 ards of fair competition established in 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 obligations 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 of its estimated expenses for the foregoing 
 juirposes, and (2) an equitable basis upon which the funds necessary 
 to support such budget shall be contributed by members of the Trade ; 
 
 (c) After such budget and basis of contribution have been ap- 
 proved by the Administrator, to determine and secure equitable con- 
 tribution 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) After the approval by the Administrator of the itemized 
 budget of estimated expenses and equitable basis of contribution non- 
 
8 
 
 payment by any member of the Trade of an assessment levied by the 
 'Divisional Code Authority as an equitable share of the cost of Code 
 Administration shall constitute a violation of this Supplemental 
 Code and of the General Code. 
 
 Section 9. Each member of the Trade shall pay his or its equitable 
 contribution to the expenses of the maintenance of the Divisional 
 Code Authority, determined as hereinabove provided, and subject 
 to rules and regulations pertaining thereto issued by the Adminis- 
 trator. Only members of the Trade complying with the Code and 
 contributing to the expenses of its administration as hereinabove pro- 
 vided, shall be entitled to participate in the selection of members of 
 the Divisional 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. 
 
 Section 10. 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 ex- 
 penditures in excess of prior budget estimates except those which 
 the Administrator shall have so approved. 
 
 Section 11. (a) There is hereby crea,ted an Industrial Kelations 
 Committee to be composed of three (3) persons who shall be selected 
 as follows : 
 
 1. A representative of the employers to be appointed by the Divi- 
 sional Code Authority. 
 
 2. A representative of the employees to be nominated by the Labor 
 Advisory Board of the National Recovery Administration and ap- 
 pointed by the Administrator. 
 
 3. An impartial chairman to be selected by the two (2) members 
 already appointed or in case they disagree, by the Administrator. 
 
 (b) The members of this Committee shall hold office for six (6) 
 months from the date of their appointments and re-appointments 
 shall be made and vacancies shall be filled in the same manner as 
 provided in paragraph (a) of this Section 11. 
 
 (c) This Industrial Relations Committee shall have the duty of 
 dealing with complaints and disputes relating to labor in accordance 
 with rules and regulations issued by the Administrator. It shall 
 have all powers necessary to facilitate the performance of said duty. 
 
 Article IV — Trade Practices 
 
 (SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE) 
 
 The following practices constitute unfair methods of competition 
 for the members of the Trade and are prohibited : 
 
 Section 1. To make quotations or bids which do not state that 
 they are made subject to conditions, terms of sale, trade practices, 
 and differentials of this Supplemental Code. 
 
 Section 2. To compute quantity discoimts on any other basis than 
 that of the quantities shipped and/or billed to a single buyer. 
 
 Section 3. To ship or deliver products which do not conform to 
 samples submitted when orders have been obtained on the basis of 
 such samples or representations made prior to securing the orders. 
 
I 
 
 Section 4. To make fictitious or blind bids or to attempt through 
 connivance to have all bids rejected to the end that a more advanta- 
 geous position may be secured in new bidding. 
 
 Sectiox 5. To submit bids where quantities of the various products 
 covered by the bids are not specified by the purchaser. 
 
 Section 6. To bid in lumj) sum for a group of items without stating 
 unit prices. In all competitive bids, unit prices shall be stated for 
 each item. 
 
 The total of the extended prices shall be the bid price, except that 
 nothing herein shall restrain a bidder from granting bona fide dis- 
 counts for quantity and/or volume on whatever basis established and 
 filed with the Divisional Code Authority, as provided in Section 1, 
 Article V. 
 
 Section 7. To offer or make any concession, payment, or allowance 
 in the form of money or otherwise on any line of merchandise as a 
 subterfuge or concession to influence a sale of any line of merchandise 
 other than that on which such concession, payment or allowance is 
 granted. 
 
 Section 8. To employ subterfuge directly or indirectly to avoid or 
 attempt to avoid the provisions of this Supplemental Code, or the 
 General Code, or the purpose and intent of the National Industrial 
 Recovery Act, which is to increase employment, provide better wages, 
 promote fair competitive methods, better business conditions, and 
 promot-e the public welfare. 
 
 Section 9. To imitate trade marks, trade names, slogans or other 
 marks of identification of competitors' products for the purposes of 
 unduly hampering or embarrassing a competitor and/or for the 
 purpose of deceiving the prospective purchasers of such products; 
 or to catalog a manufacturer's product which is not sold by that 
 member of the Trade. 
 
 Section 10. To secure confidential information from competitors 
 concerning their business by false or misleading statements or repre- 
 sentations or by false impersonations of one in authority and the 
 wrongful use thereof to unduly hinder or stifle the competition of 
 such competitors. 
 
 Section 11. To offer or give prizes, premiums, or gifts in connec- 
 tion with the sale of products as an inducement to buy such products 
 when such prizes, premiums or gifts are not offered to all customers 
 of the same class in the trade area. 
 
 Article V — Permissi\'e Trade Practices 
 
 (SUPPLEJtfENTINQ ARTICLE VIH OF THE GENERAL CODE) 
 
 Section 1. (a) within fifteen (15) days after they are notified 
 to do so by the Divisional Code Authority, in accordance with the 
 approval of the Administrator, members of the Trade must file with 
 it schedules of their sales prices on such of the lines which they 
 sell as the Divisional Code Authority may from time to time desig- 
 nate, including all terms, conditions, or allowances affecting the 
 price at which any item is offered for sale to their customers. These 
 schedules may be changed by filing with the Divisional Code Author- 
 
10 
 
 ity notice of such changes five (5) days before such changes are to 
 become efTective.^ 
 
 (b) No member of the Trade shall sell or offer to sell goods at 
 prices other than those which he then has on file. 
 
 (c) No member of the Trade shall file a price or sell any item 
 for a price lower than the net invoice price plus incoming transpor- 
 tation costs to his warehouse, provided that; 
 
 (1) A member of the Trade may sell at a price less than the 
 minimum provided above in order to meet the price of a competitor 
 whose price does not violate this Section ; provided that before mak- 
 ing the sale he files by telegraph, effective immediately, the price 
 at which he proposes to make such sale. 
 
 (2) Bona fide sales for the purpose of closing out discontinued, 
 obsolete, or distress merchandise may be made at such prices and 
 upon such terms and conditions as may be necessary to effect their 
 sale. Full details of such sales including the amount of such mer- 
 chandise on hand and the date of its purchase must be reported to 
 the Divisional Code Authority at least fifteen (15) daj^s before the 
 date of such sale. 
 
 (d) All filed prices effective at anytime shall be matters of public 
 record and available for inspection by all interested parties. The 
 Divisional Code Authority however may establish a reasonable 
 charge for furnishing by mail copies of such filed prices to those 
 requesting the same. 
 
 (e) When manufacturers of products distributed by this Trade 
 shall, through action of their respective Code Authorities with the 
 approval of the Administrator, have established standard units as 
 to grades, qualities, size, quantities, and covmts in which standard 
 unit fabricated goods shall be offered for sale, price schedules filed 
 by members of the Trade shall be in the form of quotations on the 
 standards units so established but without respect to the manufac- 
 turer's designated prices. 
 
 (f) If at any time the Administrator after a hearing shall find 
 that this open-price arrangement is being used for the purpose of 
 price fixing or unduly enhancing the price, he may in his discretion 
 suspend its operation or declare it permanently inoperative. 
 
 Section 2. (a) No wholesaler shall quote to any purchaser of 
 a product upon which the manufacturer thereof shall have granted 
 to such wholesaler a fair price differential, as provided by Article 
 VIII, Section 1 of the General Code, a lower price than that quoted 
 on such commodity by said manufacturer to the same class of 
 purchasers. 
 
 (b) If such differential is greater than the operating cost of any 
 member of the Trade, such member of the Trade shall be permitted 
 to sell at less than the differential so established upon furnishing 
 proof of his lower operating cost to the Divisional Code Authority, 
 but not less than his invoice cost plus said operating cost. 
 
 (c) Any wholesaler or distributor may reduce his price below 
 that established in paragraph (a) of this Section in order to meet 
 the competition of any other wholesaler or distributor who, in ac- 
 cordance with the provisions of paragraph (b) of this Section, is 
 
 * See paragraph 2 of order approving this Code. 
 
11 
 
 gelling at a price less than that established in paragraph (a) of this 
 Section. 
 
 (d) The Administrator may. from time to time, collect statistics 
 of the operating expenses of the members of the School Supplies 
 and Equipment Distributing Trade. If such investigation shall 
 show that the price differential established under paragraph (a) 
 above is in any way inequitable or unduly high in relation to the 
 wholesaler's operating costs, or tends to enhance the price of the 
 product to buyers or ultimate consumers, the Administrator may, 
 after proper notice and hearing, suspend it or declare it permanently 
 inoperative. 
 
 (e) An exception to the rule in paragraph (a) of this Section may 
 be granted by the Divisional Code Authority in case a wholesaler 
 wishes to discontinue handling a manufacturer's line and has stock 
 on hand to be disposed of. In such case the manufacturer shall be 
 given the option of taking back at the manufacturer's then market 
 price the wholesaler's stock on hand or any portion thereof. If the 
 manufacturer fails to exercise this option within ten (10) days after 
 written notice by the wholesaler of his intention to discontinue han- 
 dling that line, the wholesaler may proceed to dispose of the stock 
 at any price he may desire.^ 
 
 Article VI — State Laws 
 
 In any state where the purchase of School Supplies and/or Equip- 
 ment is governed by the law of such state, provisions of this Supple- 
 mental Code shall not apply in any situation where such provisions 
 would be in conflict with such state law. 
 
 Article VII — Power of President to Modify 
 
 This Supplemental Code and all the provisions thereof are ex- 
 pressly made subject to the right of the President in accordance with 
 the provisions of Sub-section (b) of Section 10 of the Act, from time 
 to time to cancel or modify any order, approval, license, rule or 
 regulation issued under Title I of said Act. 
 
 Article VIII — Effective Date 
 
 This Supplemental Code shall become effective on the tenth day 
 after its approval by the Administrator. 
 
 Appi-oved Code No. 201 — Supplement No. 12. 
 Registry No. 1G98-1-03. 
 
 • See paragraph 2 of order approving this Coda, 
 
 o 
 
12 
 
 SCHEDULE A 
 Regional Districts Established by Association 
 
 District A: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island. 
 Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, West 
 Virginia and District of Columbia. 
 
 District B: Virginia, North Carolina, South Carolina, Tennessee, Mississippi, 
 Alabama, Georgia, Florida and Louisiana. 
 
 District C: Illinois, Indiana, Kentucky, Ohio, Michigan except Northern 
 Peninsula. 
 
 District D: Wisconsin, Northern Peninsula of Michigan, Minnesota, Iowa, 
 Missouri, Oklahoma, Kansas, Nebraska, North Dakota, South Dakota, and 
 Montana. 
 
 District E: Texas and Arkansas. 
 
 District F: Wyoming, Utah, Colorado and New Mexico. 
 
 District G: Washington, Oregon and Idaho. 
 
 District H: California, Nevada and Arizona. 
 
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UNIVERSITY OF FLORIDA 
 
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