NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COTTON TEXTILE INDUSTRY
AS APPROVED ON DECEMBER 29, 1933
WE DO OUR PART
uLs DEPOSIT TORY
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents. Washington. D.C. Price 5 cents
Approved Code No. I-Amendment No. 3
Registry No. 299-25
This publicatio is for sale by the Superintendent of Documents, Government
Printing 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 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich: 801 First National Bank 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.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
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 Building.
Approved Code No. 1-Amendment No. 3
AMENDMENT TO CODE OF FAIR COMPETITION
COTTON TEXTILE INDUSTRY
As Approved on December 29, 1933
TRADE PRACTICES GOVERNING THE MERCHANDISING
OF CARDED COTTON YARN
The Cotton Textile Industry Committee, in accordance with Sec-
tion VI of the Code of Fair Competition for the Cotton Textile
Industry, has submitted for my approval the following recommen-
dations as to trade practices governing the merchandising of carded
" TRADE PRACTICES GOVERNING THE MERCHANDISING OF CARDED COTTON
"(a) Spinning mill' is any manufacturer spinning carded cotton
yarn to be sold as such, whether selling with or without the employ-
ment of a selling agent.
"(b) 'Selling agent' is any person, whether known as a commis-
sion house, yarn merchant or otherwise, who sells carded cotton
yarn in the relation of an agent for a spinning mill, who receives
a commission for his services, assumes the obligation of effecting
sales in the interest of the spinning mill and guarantees the account
of the purchaser, the mill being the principal in all transactions and
being furnished with the names of all prospective purchasers when
sales negotiations are opened, the guarantee of performance of the
contract being a matter for special agreement between the spinning
mill and the selling agent.
"(c) 'Commission' is the sum paid or allowed to an agent for
his services to a spinning mill in the sale of carded cotton yarn.
"(d) Broker is one who brings together spinning mills and pur-
chasers and receives, on each transaction which the mill completes
by delivery, a brokerage fee on the price of the order, but does not
guarantee the account.
"(e) 'Purchaser' is anyone who buys carded cotton yarn for his
own account or for that of an affiliate or subsidiary or parent organ-
2, Spinning mills shall furnish duly certified reports each week
to the Statistical Bureau of The Cotton-Textile Institute, Inc., 320
Broadway, New York City, of all sales of carded cotton yarn dur-
ing the week immediately prior (except. sales made through selling
agents), stating same by date of order, quantity and description of
yarn, delivery specifications, price to be paid, and terms of sale.
Selling agents shall file similar reports as to all sales made on
behalf of spinning mills. Statistical reports shall be issued weekly
by the Institute to all spinners and selling agents summarizing such
statistical information received.
"3. No spinning mill, selling directly, shall make any price to a
purchaser or any allowance to a purchaser in the gui.,e of conmmis
sion, brokerage, dealer's discount or fee, either directly or indirectly,
or by any secret rebate, advantage, inducement, compensation, gift
or otherwise, by which any purchaser shall, in effect, pay a less price
than the price which such spinning mill would quote if dealing
through selling agent-. Conimission shall be paid only to bona fide
selling agents registered as such with The Cotton-Textile Institute,
"4. No selling agent shall, directly or indirectly, by way of com-
mission, discount, fee, secret rebate, advantage, inducement, compen-
sation, gift or otherwise, split or divide with or pass on to the
purchaser the commission or any part thereof which he receives
from the spinning mill.
"5. Selling agents shall not, directly or indirectly, whether
through a subsidiary or an affiliate or otherwise, buy stocks of carded
yarn for their own account or for that of a subsidiary or affiliate or
parent organization, engage in short selling or guaranteeing prices
against decline; but a selling agent may sell for his own account any
yarn which he may be required to take over by reason of his guar-
antee of a purchaser's account or contract.
6. No spinning mill shall, either directly or through a selling
agent, guarantee prices against decline, or directly or indirectly abate
prices on unfinished contracts, except to the extent that costs are
affected by subsequent Governmental action.
7. No spinning mill shall, either directly or through a selling
agent, grant to any purchaser on any sale of any type of carded yarn
sold as such more favorable terms of cash discount than 2% discount
for payment within 30 days or 2% discount up to the 10th proximo,
as may be elected by the purchaser. All yarn, other than as herein-
after mentioned, shall be sold net weight. Not more than five days'
grace shall be allowed in any discount period. All sales providing
for settlement either in any medium other than cash or for longer
periods of time than those above specified shall be absolutely net.
On sales of ball warps, chain warps, warps on beams and similar put-
ups such yarn shall be sold on the basis of calculated weight with 2%
tolerance. The foregoing stipulations in this clause apply only to
"8. In all sales effected by spinning mills, whether directly or
through a selling agent, there shall be used a uniform form of con-
tract', after such form shall-have been submitted to the Adminis-
trator by the Code Authority and received his approval.
"9. No provision herein shall apply in respect to orders placed
before the effective date of these provisions which remain uncom-
pleted on that date.
"10. Administration of these provisions Governing the Merchan-
dising of Carded Cotton Yarn' is entrusted to the 'Carded Yarn
Sub-Committee,' constituted by the Cotton Textile Industry Com-
mittee, subject to the authority and jurisdiction of the latter commit-
tee, i. e., the Code Authority for the Cotton Textile Indu-stry."
Pursuant to the authority vested in me by said Section VI of the
Code, I hereby approve said recommendations. and order that be-
ginning January 1, 1934, they become effective as part of the Code.
HUGH S. JoINSeN,
Admt;tin.-rator for Iidu.rfal RI'co"r'j.
December 29, 1933.
Approved Code No. 1-Amendment No. 3.
Registry No. 299-25.
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