National Industrial Distributors Association (U.S.).
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National Industrial Distributors Association (U.S.).
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National Industrial Distributors Association (U.S.).
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Biographical History
The National Industrial Distributors Association was founded in Philadelphia in 1906. Thirty-eight distributors who primarily represented wholesalers of industrial supplies, machinery, and hardware attended the first annual meeting. These distributors attempted to address some of the problems which stemmed from their relationship with manufacturers, whom they accused of excessive price cutting and attempting to deal directly with retailers. The courts, however, declared that any attempt by the distributor and manufacturer to work together was a violation of the Sherman Antitrust Law.
The New Deal's National Recovery Act was designed to bring about economic recovery by countering the general deflation which many economists believed was responsible for the Depression. The NRA thus recognized that the distributors could play a significant role in keeping prices at a stable level. The National Industrial Distributors Association was thus recognized by the NRA, and its codes received the stamp of the "Blue Eagle."
During World War II, distributors played an important role in the Lend Lease program and, later, in direct war production. The War Production Boards thus gave distributors priority status.
The distributors' association continued to prosper in the 1950s and early 1960s. However, when inflation became a problem in the 1970s, much of the New Deal legislation was repealed. The Wright-Patman law, which exempted distributors from the Sherman Antitrust Act, was repealed in 1978, and this was a severe blow to the NIDA.
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Subjects
Antitrust law
Commission merchants
Competition, Unfair
Fair trade
Hardware
New Deal, 1933-1939
Price fixing
Trade associations
Wholesale trade