California Retail Lumber Code Approved

(Continued f.rom Page 22) to adhere to such terms of sale and to enforce collections under same, is hereby declared to be an unfair trade practice.

2, Unfair Conduct. The wilful interference by any dealer by any means whatsoever with any existing contract between any dealer and his customer which has the efiect of attracting business away from the dealer interfered with is hereby declared to be an unfair trade practice.

3. Commercial Bribery. The granting of gratuities, secret rebates, advertising allowances, free samples of commercial size, special services; the issuance of false invoices or the granting of undue allowance, absorbing any sales taxes which have been or may be imposed or other special inducements is hereby declared to be an unlair trade practice.

4, Misleading Statesments. Any statement which shall be made, either oral, wriiten or printed, for the p.urpose, or having the efiect of misleading or deceiving purchasers with respect to the quantity, quality, grade, brand or substance of the goods purchased is hereby declared to be an uqfair trade practice.

5. Quotations. To assure the carrying out of the intent and purposi of the National and California Industrial Recovery Acts so as not to eliminate or oppress small enterprises and not operate to discriminate against them. it shall be an unfair trade practice for any dealer to sell, bid or offer for sale any materials in his division or any other division and,/or territgry at prices less than those established by said division, territory, city or town where the materials are to be used.

6. The retail dealer is recognized as the proper distributor in his trade territory of all lumber and,/ot building materials excep! the followlng classes of business: The Departments of the United States Goveinment and transcontinental railroads. IIowever, all materials, for the above, delivered from a yard's stock are to be sold by dealers at the Divisional Retail Price.

7. It rhall be deemed an unfair trade practice for any dealer and/or agent or agents to allow any secret p4yment or allowance of iebatei, refunds. commissions, or unearned discounts either in the form of money or otherwise, furnish bonds or secretly extending to certain purchasers special services or privileges not extehded to all purchasers purchasing upon like terms and conditions to the injury of a competitor and where such payr-nent or allowance tends to destroy competition.

SUPPLEMENTAL CODE AND SPECIAL PROVISIONS RELATING TO THE SOUTHERN CALIFORNIA DISTRICT I_ADMINISTRATION

l. At the next meeting held after the adoption of this Code there shall be created a Code Administration Committee. Membership shall consist of one representative chosen by each trade area organization now in existence or which shall subsequently be created within the area of Southern California as hereinbefore defined.

2. The Code Administration Committee shall have complete jurisdiction in the district covered by this Supplemental Code. subject to the approval of the administrator, and shall issue and enforce such rules, regulations, and interpretations, including trade practices; impose upon dealers subject to the jurisdiction of this Code such restrictions and designate such agent or agents and delegate such authority to them as may be necessary to effectuate the purposes and to enforce the provisions of this Code.

3. Each dealer subject to the jurisdiction of this Code shall have as many votes as shall equal the quotient obtained by dividing by 60,000 the aggregate amount in dollars of the invoicing value of the products sold at retail and delivered by him for consumption within the State of California during the calendar year, September l, 1932, to August 31, 1933. Fractions in such quotient shall be disregarded; provided, however, that each dealer shall have at least one vote. Dealers may vote by written proxy at any meeting. 75 per cent of all votes that might be cast must be present or represented by written proxy to constitute a quorum. 75 per cent of the votes present at any meeting shall be required for authoritative action. Each member of a Code Administration Committee shall be entitled to cast the number of votes equal to the total of votes to which all members of the organization he represents are entitled.

4. The Code Administration Committee shall establish in this district a Central Control Committee consisting of seven members which shall serve as the executive agent of the Code Administration Committee.

II-COST PROTECTION

1. The District Code Administration Committee is authorized to establish and from time to time revise minimum price lists effective in such areas ds it may designate within its District. carrying prices f.o.b. yard, to protect the replacement price of such merchandise plus such reasonable overhead as may be determined by standard ind uniform accounting practice either by the adoption of the current weighted average cost of olerhead of all pelsons subject to the jurisdiction of this Code, or by the adoption of what is statistically known as the "mode", as may be determined by the Committee, and including a reasonable profit as is permitted by the provisions of the Cartwright Act, as amended. "Reasonable profit" is hereby defined by this trade for the purpose of this Article as not exceeding ten per cent (10/o) of the net sales price after deducting all quantity and/or trade and/or cash discounts.

2. Allowable items in the computation of overhead shall be wages; materials and supplies; administraitve expense (including trade association dues and code fees); shipping (including grading and loading); selling; maintenance; insurance; taxes; interest paid on indebte-dness representing plant facilities and working capital necessary to the operation of the business; discounts; claims paid; losses on accounts; depreciation (on straight line method and based on the fair value or the cost, whichever is lower); and loss by deterioration and breakage.

3. These costs, when ascertained, shall be allocated by the Committee to the several items in proportion to their relative market price over a representative period.

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4. In the interim, and until actual overhead can be determined to the satisfaction of the Committee, the general overhead cost of doing business, including selling expense, shall be considered to be twenty-five per cent (25%) of replacement cost landed in the yard of the dealer.

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5. The Committee shall issue interpretations and shall promulgate rules and regulations necessary for the enforcement of this Article to prevent evasion and secure uniform and equal application thereof.

6, Minimum prices established in accordance with the provisions of this Article shall become effective three days after publication thereof by the Committee.

7. No-person shall sell, or offer for sale, any lumber or timber items upon which minimum prices have been established, at prices less than those so established.

8. All basic costs as herein provided shall not include delivery charges. Cartage on all merchandise to be delivered by a-de-aler shalfbe computid in accordance with a standard cartage schedule, which shall be compiled by each division and shall be approved by the Committee. Said rates shall be not less than the cost of operation, as provided in Section 2 of this Article.

9.' Drbpped lines or surplus stocks, sometimes designatedas "close-outs'r of inventories, may be converted into cash to meet immediate needs, and may be sold at such prices as are necessary to move the merchandise into buyers' hands. Holvever, all such stocks must first be reported to the Committee of the district and be disposed of subject to the approval of that Committee.

III-AMENDMENTS

Amendments to this Supplemental Code may be proposed to the Code Administration Committee by any trade area organization thereof and when approved by the Committee andlor their designated agent or agenlt shall be effective, subject to. the approval of the Chief of the Division of Corporations or his agents. be in fuil rorce and efiect "r ,tili$fi$Hi., herein.

For the purpose of co-ordination and audit, each dealer shall furnish the Code Administration Committee or its designated agent or agents with such reports and records as may be required.

V_SALES PRACTICES

1. Terms of Sale. Terms of sale shall be on the basis of a standard set-up by the Committee. The failure to adhere to such terms of sale and to enforce collections under s4me, is hereby declared to be an unfair trade practige.

2. Unfair Conduct. The wilful interference by any dealer by any means whatsoever with any existing contract between any dealer and his customer which has the effect of attracting business away from the dealer interfered with is hereby declared to be an unfair trade practice.

3. Commercial Bribery. The granting of gratuities, secret rebates, advertising allowances, free samples of commercial size, special services. thJissuance of false invoices or the granting of undue allowances, absorbing any sales taxes which have. been or may be imposed oi other spicial- inducements is hereby declared to be an unfair trade practice.

4, Misleading Statements. Any statement which shall be made, either oral, written or printed, for the purpose, or having the efi-ect of misleading or deceiving purchasers with respect to the -qg-antity' oualitv. erade. brand or substance of the goods purchased is hereby declaied-to be an unfair trade practice.

5. Quotations. To assure the carrying -out of the intent and or.poi of the National and California Industrial Recovery Acts, io as not to eliminate or oppress small enterprises anii not operate to discriminate agaiqst them, it shall be an unfair -trade praclr,ce for any dealer to ielf bid or ofier for sale any materials in his dis- trict or any other district and/or territory at prices less than those established for said district, territory, city or town where the materials are to be used.

6. The retail dealer is recognized as the proper distributor in his trade territory of all lumber and/or building materials excapt the following classes of business: The Departments of the United States Government and transcontinental railroads. However, all materials, for the above, delivered from a yard's stock are to be sold by dealers at the Divisional Retail Price,

7. The phrase "unfair trade practice" shall also include the act or acts of systematically rendering or perforr-ning any work or service at a price less than the cost thereof as a part, parcel or incident to any transaction with the object of rendering or performing such service or work for the purpose of acquiring an advantage in trade over competitors.

Exhibits A And B Of The Code

Not to employ any person under 16 years of age, except that persons between 14 and 16 may be employed (but not in manufacturing or mechanical industries) for not to exceed 3 hours per day and those hours between 7 a.m. and 7 p.m. in such work as will not interfere with hours of day school.

Not to work any accounting, clerical, banking, office, service or sales employees (except outside salesmen) in any store, office, department, establishment, delivery or freight service or in any other place or manner, for more than 40 hours in any one week.

Not to employ any factory or mechanical worker or artisan more than a maximum week of 35 hours until December 31. 1933, but with qhe right to work a maximum week of 40 hours for any six weeks within this period; and not to employ any worker more than eight hours in any one day.

The maximum hours fixed in the foregoing paragraphs (2) and (3) shall not apply to employees in establishments employing not more than two persons in towns of tess than 2500 population which towns are not part of a larger trade area; nor to employees in a managerial or executive capacity, who receive more than $35 per week; nor to employees on emergency maintenance and repair work; not to very speqial cases where restrictions of hours of highly skilled workers on continuous processes would unavoidably reduce production but, in any such special case, at least time and one-third shall be paid for hours worked in excess of the maximum. Population for the purposes of this Code shall be determined by reference to the 1930 Federal Census.

Not to pay any of the classes of employees mentioned in paraeraph (2) less than $15 per week in any city of over 500,000 popu-