Code of fair competition for the athletic goods manufacturing industry as approved on February 2, 1934

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Title:
Code of fair competition for the athletic goods manufacturing industry as approved on February 2, 1934
Portion of title:
Athletic goods manufacturing industry
Physical Description:
p. 107-124 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Sporting goods industry -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1657-1-04."
General Note:
"Approved Code No. 254."

Record Information

Source Institution:
University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004938051
oclc - 649394633
System ID:
AA00006432:00001

Full Text







NATIONAL RECOVERY ADMINISTRATION





CO~DE OF FAIR C OM1PE TIT ION




ATHLETIC GOODS


MANUFACTURING INDUSTRY

AS APPROVED ON FEBRUARY 2, 1934


I I
For sale by the Superintendent of Doumnents, W'ashington, D.C. Price 5 cents


Approved Code No. 254


Registry No. 1657--1--04


IILB~C'C-



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UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON :1934























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Wasshinlgton, D.C., and by district offices of the Bureau of Foreign
and Domestic C~ommlnerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCEC

Atlanta, Ga.: 5041 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17i06, 201 North Wells Street
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 80)1 First National Bank Building.
Bouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Ca~if.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
M~inneapolis, Minn.: 213 Federal Building.
NewT Orleans. Lf.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
N'orfolk, Va.: 406 East Plume Street.
Philadlelphbin, Pa.: 422 CommereinI Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, MIo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle. W'ash.: 8`19 Federal Office Building.












Approved Code No. 254


COD)E OF FAIR COMPETITION
FOR THE

ATHLETIC GOODS MANUFACTURING INDUSTRY

As Approved on February 2, 1934


ORDER

APPROVING CODE OF EIAIR COMPLETION FOR THE ATHLETIC rOOD)S
IMA~NUACTURING INDUSTRY
A4n application having been duly made pur~suant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery ALct, approved Juzne 16, 1933, for approval of a Code of
Fiair Competition for the Athletic Goods Mlllanufacturing Indlustry,
and hearings having beenl duly held thereon. and the annexed re-
port on said Code, containing findings with respect thereto, having
beeen made and directed to the President:
NOW7, THEREFORE, on behanlf of the Prelsidenlt of the United
States, I, H~ugh S. Johnson, Administrator for Industriaiil Recovery,
pursuant to authority restedc~ in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that. said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fa-ir Compet~ition be and it is hereby approved, provided that
th~e continued participation of each of the trade associations par-
t~icip~atinga in the selection or activities of thet Code Authority after
thirty days from the effective date of this Code shall be contingent
upon their amnendingf their respective constitutions and bylaws to
the satisfaction of the Administrator; and provided further, that
within ninety days I may direct that there be a further hearing on
such of the provisions of said Code as I may designate~, and that
anyT order which I mayT make after such hearing shall have the
effect of a condition on the appr~ovnl of said Code.
SHuanH S. Joa-NsoN,
Admninistrator for Indcust~rial Recovery.
Approval :recommnended~:
GEO. L;. BEIIIY,
Division Adm:rzrr,~inc~itaor.
1VASHINGTONU, D).C.,
February 9, 1934.


37670" 313-1S6-34


(101)












REPORT TO THE PRESIDENT


The PRESIDENT,
The Wh'~ite Hlouse.
SmR: A public hearing on the Code of Fair Competition for the
Athletic Goodls MZanufacturinga Industry was conducted in Washing-
ton on Novemiber 10, 1933, in accordance with the provisions of the
National Industrial Recovery Act. This Code was submitted by the
Athletic Goods Mianufacturers Association, located in New York;
the National Association of Golf Club MIanufacturers, located in
New Y'ork; the Golf Ball Mlanufacturers Association, located in
Prov-idence, Rhode Island: the Athletic Shoe M~anufacturers Associa-
tion, located in Cincinnati, Ohio; the Tennis Racket Mlanufacturers
Association,. located in North Attleboro, M~assachusetts; and the
Golf Bag M~anufacturers Association, located in Chicago, Illinois.
TI'hese Associations clains~to represent approximately 87 percent of
the Indlustr~y.
.After the Code wopas submitted by the above-named Associations
the Spor~ting Goods and Athletic jlear A~sqociation signified their
desire to come under thne provisions of the Code for the Athletic
Goods Mnfiu featuring Industry. They were represented at the hear-
inig anld participated in the formulation of this Code.
The maximum hours established in this Ciode are forty (40) per
week for employees engaged in accounting, clerical, stenographic, or
;simiilar w~ork, with a prov0ision for sixteen (16) additional hours in
any chosen thrir~teen (13) week period. Employees engaged in plant,
factory, or mechanical work are not. permitted to work in excess of
1,040 hours in any six (6) month p~eriodl, and ar~e to be paidi time
and one third for all hou~s wor~kedl in excess of eight (8) hours in
any one day or forty-fourl (44) in any onie week, and that no such
employee shall be p~ermitted to work in excess of ten (10) hours in
any one day or for~ty-eigiht (48) hours in any one week.
Exceptionis as to hours are granted to employees in an executive,
managerial, supervisory, or techniical capacity, and their immediate
assistant~, who r~eceive $35.00 per week or more, and to outside sales-
men and emergncy~ w~orkers. Chauffequrs, engineers, firemen, water
tenders, oilers, or maintenance mien ar'e not permitted to work in
excess of forty-eight (48) hours per week. The maximum hours for
watchmen are fifty-six (56) per week(.
In 19P9 this Indlustry operated approximately fifty (50) hours per
w~eeke and in 1931 approximately forty-eight (4~8) hours per week.
During 1929 approximately 10,793 wage earners were employed in
the Industry3 anld in 1931 there were approximlately 10,176 wage earn-
ers. It is~estima7ted that a forty-five (45) hour week would bring
employment back to the 1989 level. This Industry should be com-
mendedl on the establishment of a forty (40) hour week, inasmuch
(1os)






109


as it will employ even more wvorker~s than were emlployed in 1929.
On the basis of~ the forty (40) hour week appr~oximlately 2,033i workers
will benefit through reemnploymlent.
The Code establishes minima. ra~ngring from $14.00 to $15.00 per
week according to locality, and provides for adjustment of wages
above the minlimuml. The mlinimnuml nage for employees paid on
an hourly basis is thirty-five (35) cents per hour, with exceptions
for workers between 16 anld 21 years of age who are engaged in light
wor~k, such~ as messengers and junior clerks; also for beginners and
apprentices. The minimlum for these classes of employees is twenty-
eight (28) cents per hour. Handicapped persons doing light work
and whose earning capacity is limited may be employed at rates
below the minimum, provided the employer obtains a certificate from
the State autho~it~y dfesigrnated by the United States Dlepartment of
Labor. The number obf these subminimum employees is not to
exceed 10 percent of the total number of a member's employees.
Provision is made that female employees performing substantially
the same worki as male employees shall receive the same rate of pay.
A wage differ~ential of twCo and one half cents per hour is allowed
for the Southern district.
Hfome work is t-o be eliminated from this IndustryT, except that for
a period of one year from the effective date of this Code low-grade
baseballs andl playgrroundl balls may be sewn at home, provided that
the compensation therefore is not less than the rate of pay in effect for
such work on July 15, 1929, plus an increase of 20 percent. It
is further provided that thet Code Ac~uthority- shall investigated! the
home work problems within. ninety days after the effective date of
this Code and report its findings to the Administrator. It would seem
inadvrisable to entirely eliminatte home work at this time for the
reason that it would not increase employment in the industry and
would only serve to work a hardship on several small communities
where this type of work is being done on an extensive scale.
Wages in this Industry represented 22.5 percent of the value of
products in 1929, as compared with 16.5 percent for all industries
combined. In 1931 wages in this line of activity represented 22.8
percent of the value of products, as compared with 17.5 percent, for
combined industries.
WC7age earners in 1931, on a 48-hour basis, were paid an average
of 44.2 cents per hour, or $21~.2 per week.
The increase in price to the purchaser should not represent more,
than 12 percent by the increased wage rates and shortened hours.
If wages in this Indlustry3 are maintained at the 1929 hourly average,
i.e., 46.8 cents per hour, and on the basis of a 40-hour week, the
total pay roll would increase approximately three million dollars, or
26.5 percent, over the 1931 pay roll total.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
mngs mn this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the ~National Industrial Re~ov~ery Act, including
removal of obstructions to th~e free flow of interstate and foreign
commerce which tend to dliminish the amount thereof and will pro-






110


vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among t~he trade groups, by
inducing and maintaining united action of labor ani& management
under adequate governmental sanctions and supervision, by elimi-
nating unfair competitive practices, by promoting the fullest. possible
utilizaiong othe prese~iint oprod~uctive capacity of industries, by
avodin unneresricionofproduction (except as may be tem-
porarily required), by increasing the consumption of industrial and
Aariculltulral pmroducts t.hrougrh increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and byl otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ploy'ees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent p'rovisions of said~ Title of said Act, including without limita-
t~ion Snubection (a) of Section :3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the abpplicant a8ssocia-,
tin r trade associations truly representative o h frsi
Industry; and that participation in the selection or activities of the
Code Aulthority after thirty dlays from the effective date of this Code
shall be contingent upon their amending their respective constitutions
and bylaw-s to the satisfaction of the Administrator.
(d) The Code is not. designedl to and will not. permit monopolies
or monopolistic pra"ctices.
(e) The Code is not designed to and will not eliminate or oppress
limalll enterprises and will not operate to discrimlinate against them.
(f) TChose engaged inl other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
':This TIndustrly hals coop~eratted inn a most satisfactory manner withl
the Administ~rator in the preparation of this Code. From the
evidencee addueed during~ this hearing and from recommendations
and reports of the various Advisory Boards, it is believed that this
Code in its present form as approved represents an affective, prac-
tical, equitable solution for this Industry and for these reasons this
Code. has been approved.
Respectfully,
HoUG S. JoHNSON,
Adm~.in~istrator.
EB~nRUAR 2, 19311.












CODE OF FAIR COMPETITION FEOR TH~E ArTHLE TIC`
GrOODS MANU]FALCTUING INDUSTRY

ARTICLE I--PURPOSES

To effectuate the policies of Title I of the National Industrial
Recovery~ Act, this Code is established as a Code of Fair Comp~eti-
t~ion for the Athletic Goods Manulfacturing Industry and shall be3
the standards of fair competition for this Industry and binding upon
every member thereof.
ARTICLE IT-DEFINITIONS

1. The ter~m "Athletic Goods M~anufacturing Industry ", as used
herein, includes a11 manufacturers who produce and/or wholesalers
who import athletic goods, but does not include retailers, whether
or not they are also importers of athletic goods.
2. The term "A~Lthletic Groods ", as used herein, includes all the
balls, implements, and equipment used in any or all of the athletic
games or sports enumerated below; excepting those used for the
buildings and/or maintenance of the courts, fields, grounds, and pools
where such games are played:
(b)a GofTennis, court tennis, badminton, racquets, squash racquets,
squash. tennis, handball.
(c) F'ootball, Basket Ball, Soccer, Rugby ~Football, Volley Ball,
Water Polo, and all other athletic ~games using an inflated ball.
(d) Baseball, including all variations thereof, played with a hard
or soft ball and bat.
(e) LaCrosse.
(f) Polo and hockey, including all variations thereof, excepting
skates.
(g) Track and Field ~Athletics.
( Boxing yand W~restling.


(k), CiiFelt and/or chenille emblems, letters, and pennants.~et The
te~rm also includes gymnasium and playground equipment, medicine
balls, uniforms used for athletic purposes (except the juvenile sizes
used as play_ suits); and other similar athletic wear manufactured
exclusively for athletic purposes; and especially constructed track
Shoes and athletic shoes worn by players in the games of baseball
and football only.
3. The term Employee "", as used herein, includes any person en-
gaged in any phase of the industry, inr any capacity, irrespective of
the methoed of payment of his compensation, except a member of the
industry.
(111)






112


4. The termi employer ". as used herein, includes anyone for
whose benefit such an employee is so engaged.
5. The term member of the indlustry includes but without limi-
tation any: individuall, partnership, association, corporation, or other
formn of enterprise engaged in the industry, either as an employer
or on his or its own behalf.
6. Thle termn piecework basis includes all payment of wages
by pieces or quaRntity produicedl, including all modifications of piece-
work basis such as the Bed~eau System of Wage Payments.
7. The termI1 wage shall be defined as the rate of pay per hour
to those whlose services are paid on that basis.
8. The term salary shall be defined as the amount paid per
week to those whose services are paid on this basis.
9. PopulatRionl for the purpose of this Code shall be determiined by
r~efereic~e to the 1930 Federal census.
10,. The terim "' southern district "' as uisedl herein, means the States
of V'irginin, W~est V'irginia, North Carolina, South Carolina., Geor-
gin, A~labamna, Flor~ida. Mlississippi, Louisiana, Tennessee, K~entucky,
Oklahomin, Arkansas, Texas, New Mlexico, and Arizona. The
Norther1n district includes all other states and t~he District of
Columiibia.
ARTICLE III HOUrRS

SCECTION i. P1O emlll~Oyee engaged III accounting~, clerical, steno-
gra phiic, or simnilar wor~k! shall bet~ permiitted to work in excess of forty
(40)j hc-urs per week, except, that any uhepoe a epr
mited o wrk ixten 16)addtioalhours in any chosen consecu-
tive thiriteeni (13) weeks' period but in no event more than forty-
eighlt (48! 1) hours inl any one week.
Mr~j.. ". No employee engagedl in anly plant, factory, or' mechaniical
worlk sh~all beC permlitted to workl inl exices of one thousand forty
(1,040) hours in any six (6) months' period, provided that time and
one thlirdc shiall be panid for1 all timie worked in excess of eight (S)
hours inl anyi~ one day, or 44 hours inl any one w~eek, and provided
furtfher, tlhat no0 9uch emiployee shall be p~ermiittedl to work in excess
of tenl (10) houirs in anly one day no~r in excess of forty-eigh~t (48i)
~11008 Inl any oner week.
S~(. 3. Thle maimumnii hours specified in ,Sections 1 and 2 of
thiis Artic~le shall niot. aplyl to:
(.a) Empllloyees in an executive, mianagerial supervisory, or tech-
riiedl enpacity, andi their inanedctiate assistants whlo receive a salary
o~f $3.5.00l per week or miore.
(b) Outside salesmen.
(c) Emlployees on emlergency maifintenanlce or emergency repair
wor~lk; nlor to employees: whose wor~k mayv be directly affected byr such
emie rgeneles.
(d) Chaulffeurs, engineers, firemen, water tenders, oilers, or manin-
tenance mien, w~ho shall not be permitted to work more than forty-
egight (48) hours in aIny one week.
(e) Emiployees engaged wholly or partially in performing the
funlctions of wholesale dlistr~ibution (excluding, however, those em-
ployees engaged in manufacturing or production operations) shall






113


not be permiitted to w~ork inl excess of forty-eigrht (iS) h~our~s in any
one week.
(f) No watchmann shall be permiiittedl to worlk in excesss of fifty-six
(56) hours in any on~e w~eek.
SEC. 4. No employee shanll be permiiittedl to w\or~k for a total number
of hours in excess or the number of honurs~ prescribede her~ein, whether
he be emp~loyved by one or more emlployer~s.
A~rrICLE I1~-TY- AGES .0D BAL..HI:ES

SEcTION i. No employee r~eceiving a salary shall be paid less than
$15.00e paer wreek inn city of over 500,000 p~opullation, or in the im-
medite radeare ofsuch city; nlor less than $14.50 per week in,
any city of be~tweenl 250,000 andi 300,000 population, or in the imn-
mediate trade area of such city; nor less than $f14.00 per we~ek in.
any other locality.
SEC. 2. No employee on a wage basis shall be paid- less than thlirty-
five cents (35 (a) Employees over sixteen (16) and less than twenty-one (21)
years of age engaged in doing light wor'k, suIch as the duties of me~s-
sengrers, junior clerks and the like, and begrinners or apprenitices whro
have had no previous experience or employmienit inl the industry, shall
be paid not less than twenty-eight cents (12S{) per h~our. No
employer shall k-nowingly employ or continue to emlployr any person.
as a beginnrer or apprentice whoi h~as worked in this industry for a
period of ten (10) weeks, whether for one or mnore employers.
(b) The minimum rates of comnpensantio n for all employees in the
southern district may be less than those provided in this section by
niot to exrceed two and onie ha1lf cents (21%<~) per' hour.
(c) A person whose learning capacity is limited beenuse of age or
physical or mental handlicap may be employed on light w~ork at a
wsage below the minimlum established by this Code if the employer
obtains from the State authority designated by thle United States
Depar~tment of Labor a certificate authorizingr h~is employment at
such wnges and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a7 list of all such
persons employed by himn.
SEC. 3. The number of employees of any member of the industry
r~eceiving wnges as provided under Sections 2 (a) andl 2 (c) of thiis
Article shall not exceed ten percent (10%) of th~e total num~bet~r of
such member's employees.
SEC. 4l. Female employees performing substantially the samne work:
as male employees shall receive the samie rate of pay as male
employees.
SEC. 5. This Arlticle establishes a minimum rate of pay whlich~ shall
apply irrespective of whether an employee is compensated on a timie
rate, piece-work performance, or other basis.
SEc. 6. No employer shall permit work of anly kind to be per~formcdd
in any home or homes or outside of a factory, workshop, or the like,
except that for a period of one year from t~he effectiv-e date of this
Code, low-grade baseballs made with compr~essed cottonseed or
37670"--313-186 34---2






114


sweepings or compressed felt scraps, and playground balls made
from scrap felt or~ other similar cheap waste material may be sewed
in a home or homes, provided, however, that the compensation the~re-
for shall be not less than the rate of pay in effect on July 15, 1929,
plus an increase of twenty percent (20%b), and provided, further,
that the rates of compensation to be paid for such work shall have
t~he approvlcl of theI nCode Aulthority and be ulniform t~hroughout the
industry. WTithin ninety (90) days after the approval o t-his Code,
the Code Aut~hority shall make or cause to be made a study of the
pr~acticability of elimination of home work insofar as possible and
shall report its findings to the Administrator.
SEc. T., It is the policy of members of this industry to refrain from
reducing comlpentat~ion for employment which compensation was,
prior to Junle 16, 1933. in excess of the minimum wage herein set forth
notwithstanding that the hours of work of such employment mnag be
reduced and unless such adjustments have already been made smce
June 16, 1933, all members of this industry shall endeavor to increase
the pay of all emlployrees in excess of the minimum wage, as herein set
forth, by an equita~ble adjustment of all pay schedules.
ARTICLE \T.- GENERAL LB~OR PROVISIONS

SECTION 1. Chiild Labor.--No person under~ sixteen (16) years of
age shall be employed in the industry. No person under eighteen
(18) years of age shall be employed at operations or occupations
which are hazardous in nature or dangerous to health. In any
State an emplloyer shall be deemed to have complied with this pro-
vision as to age if he shall have on file a certificate or permit duly
signed by t~he authority in such State empowered to issue employ-
ment or age c~ertificates or permits showing that t~he employee is
of the required age.
SEC. 2. Pr~oviZons1O W fronz~ the Act~.--In compliance with Section
7 (a) of the Act it is provided:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
~be free from the inter~ferlence, restraint, or coercion of employers
of labor, or their agents, or in self-organlizationI or' in other con-
certed activities for the purpose of collective bargaining or other
mutual aid or protection.
(b) That no emp~loyee and no one seeking employment shall be
required as a condition of employment to Jom anly company umion
or to refrain from joining, norgamzmgr or assisitmgn a labor orgamiza-
tion of his ownI chodosing, and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
SEC. 3. RPC'.Ct.G8i~fe~l action of Emlployees.--No employer shall recla~s-
sify employees or duties of occupations performed or engage in any
other subterfuge for the purpose of defeating the purposes or pro-
visions of the Act or of this Code.
SEC. 4. ,S/UN ##?#&c~ for' Sa~fetY a~rnd H~ealth.--Every employer shall
make realso~nable p~rovision for the safety and health of his em-
ployees at the place and duiring the hours of their employment.









Approved Code No. 254


Registry No. 1657-1-04


ERRATA SHEET


CODE1 OF~i FiAIR CObIPETITION FOR ATHLETIC GOODS
ANI~~\UFACTURING INDUSTrRY


AS APPROVED ON FEBRUARY 2, 1934-


Article VI, Section 1, fourth line "L member should be Number."


91457*--1 244-52 34






115


SEc. 5. State Lawus.--No provisions in this Codle shall supersede
any State or Federal law which imposes on emlployer~s more stringent
requirements as to age of employees, wages, hours of work, or as to
safety, health, sanita-lry, or general working conditions, than are
imposed bB this Code.
SEC. 6. I'OSTING.--All employers shall post and keep posted com-
plete copies of the wage and hour and general labor provisions of
this Code in conspicuous places accessible to employees.

AuRrcLE VI--ORGAN~IZTION, POW'ERS, AND DUTIES OF THE CODE
AUrHORITY

SECTION 1. Or'ganlizatio~n and Constitution.;-A Code Authority is
hereby established t~o cooperate with the Admninistrator in adlminis-
tration of this Code and shall consist of twelve (12) members, or such
other member as may be approved from timne to timne by the Ad-
ministrator to be chosen by the Industry as hereinafter provided
through a fair method of selection approved by the Admlinisrtrator:
Subsection (a) Tw~o members of t.he Code Aluthority to b~e selected
by the Athletic Goods Manufacturers Association; one member to
be selected by the National Association of Golf Club Mfanufac~turers;
one member to be selected by the Golf Ball Mairnufac~turers Associa-
tion; one member to be selected by the Tennis Racket M~anufact~urers
Association; one member to be selected by the Athletic Shoe Ma~nu-
facturers Association; one member to be selected by t.he Golf Bag
Manufacturers Association; one member to be selected~ by the
Sporting Goods and Athletic WPear Association; one member to be
selected by the manufacturers of Tennis Balls; and not more than
three members to be selected by those members of the industry who
wish to participate in the act~ivit.ies of the Code Author~ity, who
assent to and a.gree to abide by the provisions of this Code, but who
are not members of any of the above mentioned groups.'
SEc. 2. Pending the selection of the Code Authority, as pr'escr~ibed
in the foregaoing Section, t~he Administrator shall appoint aCom-
mittee to act as a temporary Code Authority for a period not to
exceed sixty (60) days from t~he effective date of this Code.
SEc. 3. The Administrator in his discretion may appoint not more
than three (3) additional members without vote and without com-
pensation from the industry, to serve for such period of time and to
represent t~he Administrator or suchl group or groups as he may~
designate.
SEc. 4. Each trade or industrial association directly or indirectly
participating in the selection or activities of the C~ode Aut~hority
shall impose no inequitable restrictions on membership, and shall
submit to the Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto,
toget.her with such other information as to membership, orgalniza-
tion and activities aIS the Administrator may deem necessary to
effectuate the purposes of the Act.
SEC. 5. In order that the Code Authority shall at, all times be
t.ndly representative of the industry and in other r~espect.s comply
a se paragraph 2 of Order approving this Code.






116


with the provisions of the Act, the Administrator mlay prescribe such
hearings as he may deem proper, and thereafter, if he shall find that
the Code Authority is not truly representative, or does not in other
respects comply with the provisions of the Act, he miay take such
action as he mnay deem necessary under the circumstances.
SEc. 6. Any member of the industry shall be eligible for member-
ship inl any trade association or orgammzed group participating in the
activities of the Code AQuthority, upon compliance with the provi-
sions of the byrlaws relating to membership, provided that any per-
son applying for such membership shall, in addition to the payment
of such dues as are imposed upon and paidl by all other members,
accept a reasonable and equitable share of the cost of code adminis-
tration. Such members of the industry who do not choose to become
members of any trade association or organized group may partici-
pate in thle activities of thle Code Authority as herein provided by
paying to the Code Authority such proportionate part of the cost o~f
code development and administration as thle Code Authorit~y, subject
to the Administrator's approval, shall prescribe to be fair and
equ itable.
SEC. $. PO1LCCP8' an~rd Duti'es.--The Code Authority shall have the
following duties and powers to the extent permitted by the Act:
(a) T~o administer the provisions of this Code and provide for the
compliance of the Industry with the provisions of the Act.
(b) To adopt byla ws and rules and regulations for its procedure
and for the administration and enforcement of the Codle.
(c) To cooperate within the Administrator in making investigations
as to the functioning and observance of any provisions of this Code
at its own instance or upon complaint by any person, and to report
the same to the Administrator.
(d) To obtain from members of the industry such information
and reports as are required for the administration of the Code and
to provide for submission by members of such information and
reports as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act, wFhich information and reports
shall be submitted by members to such administrative and/or gov-
ernmlent agencies as the Administrator mnay designate; provided
that. nothiing in this Code shall relieve any member of the industry of
any existing obligations to furnish reports to any government agency.
No individual reports shall be disclosed to any other member of the
indulstry or any other party except to such governmental agencies
as may be directed -by the Administrator.
(e) To use such trade associations and other agencies as it deems
pronpr for the carry~ing out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
()To make recommendations to the Administrator for the
corination of t~he administration of this Code with such other
Codes, if any, as may be related to thiis industry, with a view of
permitting jomnt action upon matters of common interest.
(g) To secure from members of the industry who assent to this
Code and/or participate in the activities of the Code Authority






117


such proportionate payment of the reasonable expense of maintaining
the Cocde Authority as may be determined by the Code Authority
and approved by the Administrator.
(h) To recommend to the Admninistrator furither fair trade prac-
tice provisions to govern members of the inldus~try in their relations
with each other or with other industr~iesi and to r~ecormmend to the
Administrator measures; for indus~trial p-lanning. including stabiliza-
tion of employment.
SEc. 8. Any action of the Code Aurthority or of anry agency there-
of, which th~e Admninistrator may deemi unfair or improper, or
contrary to the public interest, or 'which may be represented to himn
by any interested party, as unfair to any private interest, improper,
or contrary to the public interest, may be Suspended by the Admin-
istrator for such period of time, not to exceed thirty days, as he
may deem necessary to afford an oppor-tunity for investigation into
such action. Further action by the Code Aut~hority or of any agency
thereof, may be held in abeyance by the Admninistrautor pending his
final determiination of the matter under investigation.
ARTICLE VTI UNFAIR I\RADE PRACTICES

The following practices enumlerzted, iln this A~)rticle VII shall
constitute unfair methods of competition for all members of the
industry and are prohibited. In edition thereto the practices
listed in Schedules A, B, C, and D attached hereto and are rjnade a
part of this Code shall- apply, respectively, to the following divisions
of t~he Industry:
Schedule A shall a~ppl only to ma nu facturer~s who produce and/or
w-holesalers who import balls. imnplemnents;, and equipment used in
any or all of the athletic gam~e s and sports enumerated below, except
those used for the building and.r'or maintenance of the courts, fields,
grounds, and pools where suchl games are played.
(a) Football. baskert ball, soceer, rugby football, volley ball, water
p)olo, and rt~her athletic games~ us~ing an inflated ball.
(b) Baseball, including all the ariationis thereof, played with a
haRrd or' soft ball and bat..
Schedule B shall app~ly only1 to mannufacturerls wcho produce and/or
wholesalers who imlpor~t golf balls and golf clubs.
Schedule C shall apply only to manufacturers who produce and/or
wholesalers who import tennis racquets and tenniis frames, includ-ing
racrquets andl frames for the following related games: Court tennis,
badminton, racquets, squas~h ra~cque~ts, and squash tennis.
Schedule D shall apply onlyr to mannufacturersl who produce andorlp
wholesalers who import. especially constructed athletic shoes as de-
fined in Article II, Section e of thisi Code.
SEC.TION 1. No mnember of th~e industry shall g~ive, per-mit to be
given, or offer to gaive, anyrthing~ of value for the purpose of influ-
enlcing or rewaI~lrdig thle action of an~y employee, agent, or r~epr~e-
sentative of another in relation to the b~usinessj of the employer of
such employee, the principal of such agent or the represented party,
wIithout the knowledge of such employer, pr~incipal or party. ComL-
mercial bribery provisions shall not be conistr~ued to prohibit free
and general distribution of articles coinunonly used for advertising






118


except so far as such articles are actually used for commercial brib-
ery as hereinabove defined.
SEC. 2. NO member of the industry shall pay any money or makre
any gifts to athletic organizations, leagues, associations, athletes,
or persons promlinent in any of the various lines of sport to induce
such athletic organizations, leagues, associations, athletes or persons
to use, recommend, or adopt as official the athletic goods or equip-
ment of such member, and then advertise that such athletic orgazn-
izations, leagues, associations, athletes, or persons use, recommend,
or have adopted as official such athletic goods or equipment with-
out disclosing that such organizations, leagues, associations, athletes,
or persons were the recipients of money or gifts from such member,
with the tendency to injuriouslyr affect the business of competitors.
SEC.. 3. No member of the industry shall advertise that the winners
of athletic competitions, or other individuals prominent in any of
the various branches of athletics, use or have used the athletic goods
or equipment of said member where such use is or has been induced
by gifts or payments of money or is in any way obligatory, unless
such advertisement shall also show that such winners or other in-
dividuals wCere the recipients of gifts or payments from such mem-
ber or were obligated to use such athletic goods or equipment, where
the tendencySS is to injuriously affect the business of competitors.
SEC. 4. Member of the industry shall give anything of value
to any person emnployed in a capacity involving special trust (such
as instructor, director of athletics, or advisor in any particular line
of sports) without the knowledge of his employers, upon thle condi-
tion or understanding, expn~ased or implied, t~hat its goods be recom-
mended or used by such person in preference to the athletic goods
or equipment of a competitor or competitors of such member, with
the tendency to injuriously affect the business of competitors; pro-
vided, that nothing in this section shall prevent any member of the
indulst~ry frmi selling its goods to any such person upon whatever
terms it sees fit, but without any condition or understanding, ex-
pressed or implied, as to the recommendations or use of said athletic
goonds or equainpme_ nt, and rvided,_ further, that nothing in this see-
tion shall be construed to alter in any way the provisions of Section
()of this Article.
SEC. 5. ~No member of the industry shall use the names of prom-
inent athletes on athletic goods or equipment. used in the particular
bradnch of athletics engarged in by said athletes when said athletes did
not design or do not bona fide endorse or do not themselves bona fide
use said thlet~ic gaoodls or equipment, and where from the use of said
means there is a tendency and capacity to induce purchasers of said
athletic goods or equipment to purchase said athletic goods or equip-
ment in the belief that the same are bona fide used or endorsed,
or were designed by said athletes, withl the tendencyv to injuriously
affect the business of competitors, provided that nothing contained
herein shall be construed to deprive any person of any right which
may be enjoyed ulnder any existing law.
SEC. 6. nO Dembler of the industry shall falsely advertise or falsely
represent that an athlete prominent in a particular line of sports or
athletics, designed or uses or endorses certain athletic goods or equip-
mnent, w~ith! the tendency and capacity to deceive purchasers or pro-






119


spective purchasers and the tendency to injuriously affect the busriness~
of competitors.
SEc. 7. No member of the industry shall lease, sell, or contract
to sell athletic goods or equipment, whether patented or unparented,
for use, consumption, or resale within the U7nited States, or fix a.
price charged t.herefor, or discount from, or r~ebate upon suchl price,
on the condition, agreement, or understanding that the lessee or
purchased thereof shall not use or deal in the athletic goods or equip-
ment~ of a competitor or competitors of the lessor or seller, where thle
effect of such lease, sale, or contract for sale, or such condition,
agreement, or understanding may be to substantially lessen compe-
tition or tend to create a monopoly in any line of commerce.
SEC. 8. No member of the industryS shall either dire~ctly or indi-
r~ectly discriminate in price between different purchasers of comlmodti-
ties, where the effect of such discrimination may be to substantially
lessen competition or t.end to create a~ monopoly in anylieo
commerce; provided,! that nothing herein contained shall prevent
discrimination in price between purchasers of the same classc on
account of differences in t~he grade, quality:, or quantity of the com-
miodity sold, or that makes only dlue allowannces for differences in
the cost of selling or transportation, or discrimination n m price in
the same or different comnmunities made in good faith to meet compe-
t~ition; and provided further, that nothing herein contained shall
prevent, persons engaged in selling the p)roduets of this industry
in commerce from selecting their own customncrs s in bona fide
transactions and not in restraint of trande.
SEC. 9. No member of the industry shall use on, or in anly way
in connection with the sale of, any of its athletic goodts or equ~ip-
ment! the name, nickname, or initials of any athlete or person pr~omi--
nent in any line of sport wo~hen a competitor has previousily acqcuiredl
o~f the said othllete or person, and with his approval, the exclusive
right and good wfill in and to said namelr, nickname,, or initials for
use on the sameti line of goods, and w\heret the effect of the us~e. by
the said member of the industry of the said namec, nickname, or
initials is to deceive or tend to dece~ive the plr~chasringg public as to
the source or make of thre said line of good.;, and where the tendettnc~y
is to injur~iously affect the business of the com~petitor; provided th~at
nothing contained herein shall be conlstr~ue to depr~ive any person
of any right which mnay be enjoyed~ undcer any existing law.
SEc. 10. No member of t~he industry shall maliciously induce or
aIttempt to induce the breach of existing contracts betw-een com-
petitors and anyr athlete or person promilnenlt. in any line of sport
relating to the use of said athletes' or persons' name, nickiname, or
initials, or maliciously interfere, with or obstruct the performance
of any suchl contractual duties or- services with the purpose and effect
of injuring or hampering such competitors in their businesses.
SEc. 11. No mlember of the industry shall marIk or brand merChanI1LI-
dise or the w~rappings or packages thereof, for the purposes, or wfithl
the intent, or having the effect. of miisleading rdciigtepr
chaser or consumer in respect to the quality, size, weight, or grad(e
of the articles so marked or branded, or use materials or workmanr-
ship different or inferior to that claimed, stated, or implied in any
mark or brand, label, wrapping, package, or advertisement.






120


SEc. 12. No member of the industry shall w~ithhld from or insert
in an invoice3 facts which make the invoice a false record wholly or
in part of the transaction represented on the face thereof and/or pay
or allowF secret rebates, refunds, credits, or unearned discounts,
whether in the form of money or otherwise.
SEC. 13. NO member of the industry shall publish or circulate un-
justified or unwarranted threats of legal proceedings which tend to
ha~rass or hagve t~he effect of harss~ingr competitonrs or int~imidast~ing
their customers. Failure to prosecute in due course shall be evidence
that any such threat is unwanrranted or unjustified.
ARTICLE VIII-\I~ODIFICATION

SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right. of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval1, license, rule, or regu-
Jation issued under said Act.
~ -SEC. 2. This Code, except as to provisions required by the Act,
may: be modified or amended on the basis of experience or changes
in circumstances, such miodifications or amendments to be based upon
application to the Administrator and such notice and hearing as he
shall specify, and to become effective on applroval of the Adminis-
trator, unless otherwise provided.

ARTICLE IXF--ATONOPOLIEs, EIa.

No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE XI--E=FFECTIlli ABTE

This Code shall become effective on the second M~onday after its
approval by the President.
Approved Code No. 254.
Registry N)Jo. 1657--0.








SCHEDULES

SCHEDULE A

Additional unfair trade practices aipplienble only to marnlufacturersr ~ who pro-
duce and/or wholesa~lers who unaport ball<, imph menlrts. and equipment used
in any or all of the athletic galnes andl spoirt.i; enuumera~tedt below, except those
used for the building and/'or ma~intenancet of the courts, fields, grrounds, anid
pools where such games are played~t:
(a) Football, bask~et ball. sc.eerrt. r~ugbyl football, volley ball, water pole, and
all other athletic games using an inflated ball.
(b) Baseball, including all the variationrs therreof, played with a hard or soft
ball and bat.
ARrICLE I

S;c~renoN 1. No member of this division of the industry shall stamp the name
officially on other than tojp-grade conventional type of playgro,und balls, foot-
balls, soc~er balls, or basket balls andi volley~ balls, both inseamn and outseam
styles, and for special balls provided tha~t they are not soldl at a lower price
than his top-grade conventional type.
S~xc. 2. No member of this division of the Induptry shall oiler for sale as
" seconds ", defective ", or as inferior quality merchandise, any products of
this division w~hich are in fact no~t defective or inferior in any material respect,
SEC. 3. No member of this division of the industry shall sell baseballs, pla~y-
groundl balls, footballls, seler balls, basketballs. or volley balls unless th~e said
balls are branded, with a name or other mark of idet'ifien;tion.l
SEc. 4. NTo member of this division of the industry\ shall guralrnte e any~ of
the products of th~is division except as to their freedom fromt defects a~ffctring
the quality, quantity-, grade, or construction thereof, or replace for any other
enuse, any such prod'tuct which has been used.
SEa. 5. N\o member of this division of the industry shall give trophics or
other things of value for the adoption o~r use of any merchandise by anyJ team,
club, association, l~agoue, or educational institution, excerpting~ only1~ professional
baseball leaguesi operlating in? orgalnizedl baseball.
SEC. ti. NO HIember of this division of tlhe industry shall make any donation
of balls or money to professional baseball leagues in excess of a schedule
of donations when such scrhedlules shall be agreed upon from time to tim~e by
this division of the industry and approved by the Athnli ini~tra~tor.
SEG. rC. NO member Of this division of the 'imlulstry shall stampll thl names
" Official Lengue ", Natio~nal League ", or "American LeagFue"', on other
than the manufacturer's finest quality baseballs, made of the best quality
wool yarn! conutaininlg at least 95%c wool.
Swc. 8. No member of this division of .the industry shall sell merchandise
on more favorable terms of credit than thte following:
(a) On current orders, 30 days net, 2%~ ten days or 2%~l 10th proximo.
(b) On advance spring orders shipped after November 1, andt spring samples
whenever shipped, Marnlch 31 danting, 2%r if paid April 10th.
(c) On advance fall orders shipped after June 1st, and fall samples when-
ever shippDed, September 30th dalting, 2%c if paid October 10thl.
(d) The ra~te of discount allowed on prepayment of invoices shall not exceed
6%, per annumu.
(e) P3st duelt nCCOUnts shall be subject to the legal rate of interest pro-
vided for by the laws of the State gorverning the operation of the contract
of sale.
(f, Notbing inl this Sectionl shall be deemed to apply to credit terms on
foreign or export sales.
SEC. n. No member of this division of the industry shall knowingly imitate
the trade ma1Rlks, trade11 namie., rec~ognizedl trade numubersi slogans, or other
marks of idlentiic~ation of compgetitors; provided tha~t nothing contained herein
shall be construled to cleprive any person of any right which may be enjo!ed
under an? existingp law.
SEC. 10. NO? consignment shall be made either directly or indirectly that has
for its purp~ose and/lor ellect the talking~ or securing of new business, and/or
that has for its purpose or effect the taking or keeping business away from a
competitor. It is the intent of this section, and it shall be so construed~, to
permit a manufacturer by consignment to keep his own customers who lack
working capital in business, or to salvage an account.
(121)















SCHEDULE B


Additional unfair trade practices applicable only to manufacturers whlo pro-
duce and/'or wholesalers who import golf balls andl golf clubs.

ARTcLEL I

Sncerlow 1. No member of this division of the industry shall replace the orig-
inal brand, name, or trade mark on used golf balls which have been remade,
rebuilt, or renewed, or offer for sale used golf balls which have been remade,
rebuilt, or renewed, without marking on each ball and on the cartons and
boxes in which they are packed, one of the following words: Remade ",,
" Reb~uilt ", or Renew~ed ".
SEc. 2. No member of this division of the industry shall oiler for sale any
products of thiis division as seconds ", defective ", or as of inferior quality
merchandise, which is in fact defective or inferior in any material respect.
SEC. ,7. NO member of this division of the industry shall sell golf balls unless
said balls are branded with a name or other mark of identification.
SEC. 4. No member of this division of the industry shall guarantee any of
the pr~oductsj of this dlivision, except as to their freedom from defects allecting
the quality, quantity, grade, or construction thereof or replace for any cause
any such product which has been used.
SEC. 5. No member of this division of the industry shall sell merchandise
on1 more favorable terms of credit than the following:
(a) On current orders, 30 days net, 2%0 ten days or 2%0 10th proximo.
(b) On advance spring orders shipped after November 1st and spring
samples whenever shipped, Ma~rch 31st dating, 2%r if paid April 10thi.
(c) The rate of discount allowed on prepayment of invoices shall not exceed
fic*/o per annum.
(d) Pust due accounts shall be subject to the legal rate of interest provided
for by any existing laws governing the operation of the contract of sale.
(e) Nothing in thiis Section shiall be deemed to apply to credit terms on
foreign or export sales.
SEC. 6. No0 member of this division of the industry shall knowingly imitate
the tradle marks, trade names, recognized trade numbers, slogans or other marks
of identification of competitors; provided that nothing contained herein shall
be construed to dlepriv~e any person of any right which may be enjoyed under
any state or Fedleral law.
SEe. 7. No conlsignmlenlt shall be made, either directly or indirectly, thiat
has for its purpose and/or effect the taking or securing of new business and/or
that has for its purpose or ellect the taking or keeping business away from a
competitor. It is thle intent of this section and, it shall heo so construed, to
permit a manumecturer by consignment to keep his own customers who lack
working capital in business or to salvage on account.
SE. 8. NO member of this division of the industry shall make gifts of any
kind to any golf player, either professional or amateur, nor charge such person
a lower price for merchandise than the price charged other customers of the
same class; provided any m~anufacturer may employ any golf player at an
annual salary of not less than $1,500.00, each to play withl the balls and/or
clubs of said manufacturer in tournaments and/or exhibition play, and,/or for
the use of his name as a trade miark on golf clubs and/or golf balls. No dedue-
tion from said salary of $1,500.00 per year shall be made for failure to win any
one or several tournaments, nor shall the said salary of $1,500.00 include any
part of the prize money won by the said player.
(122)



















Approved Code No. 254


Registry No. 1657-1-04


ERRATA SHEIETE"

CODE OF FAIR COMPETITION

FOR THE

ATHLETICC GOODS MFG. IN[r~D.


As Approved on February 2,19)34

Schedule B3, Section 2, the word "' n~ot "' should be inserted between
the words "Lfact and defective so that the phras reads '" which is
in fact not defective or inferior *t ".





























95760*---1325-29--34
W.S. SDVERNMENT PRINTINIG OFFlIC; tS$41


















SCHEDU'iLE O


Additional unfair trade practir-es applilsablr only to manufacturers who
produce and/or wholesalers \\ho import tennis rackets, and tennis fr~ames,
including rackets and frames for the follow~ing related games: Court tennis,
badlminton, racquets, squash racquets, squa-b tennis.

ARTIcom I

SECTION 1. No? members of this division. of the industry shall offer for sale as
seconds o~r discontinued models, any rackets or frames which are not bona fide
seconds or dlisc~ontinued models. Such bona fide seconds or discontinued models
shalll be indelibly stamped with a steel stamp wcith the words second or
" discontinued model respectively.
SEC. ~. N'o member of this division of the industry shall guarantee any prod-
ucts of this division except as to their qlualit', quantity, grade or construction,
and freedom from defec~ti.
SEc3. 3. No member of this division of the industry shall sell merchandise on
mlore favorable terms of credlit than the following:
(a) On current orders, 30 days net, 2q.~ ten days, or 20~ 10thi pr~oximo.
(b) On advance spring~ orders shippled after Novemlber 1st and spring sam-
ples whenever shippred, March 31st dating, 2%J if paid April 10th.
S(c) Tlhe rate of discount on prepayment of invoices shall not exceed 6%c~
per anonum.
(d) Past due accounts shall be subject to the legal rate of interest pro-
videdl for by ~the laws of the State governing the operation of the contract
or sale.
(e)' Nothing in this Section, shall be deemed to applyl~ to credit terms on
forleigin or export sales.
E~c. 4. No consignment shall be made either directly or ind~i~rlrtly, that
has for its purpose and/or effect the tAkinlg or sec~urin.= of new business and/or
thant has for its purptose or effect the taking or IkeepingF business away frocm a
competitor. It is the intent of this sections,. and it shall be so construed, to
pecrmit a manufacturer by consignment to keep his owon customers who lack
wolrking~ capital in business or to salvagie anl account.
SE.C. 5. No mnemlber. of this division of the industry shall make gifts of any
kindA to any tennis player, court tennis p~l;aver. badminton player, racquets
:player~l, squash racquets p~layerl, squash tennis player, either professional or
ama~teur. or charnlge such persons a low-er price for merchandise thzan the price
chargl~ed other customelrs of the same class, exrcept that the first twenty men,
f~~ltwev w~omen, isi junior,l, four boys, and four gairls, rankr tennis players as per
the rankling list of the pre~edling~ play'ingr season of the U.S. Lawn TeInnis Associ-
ationl, moay be given free of chal~rge tennis rackets, tennlis racket frames, and re-
str'inging~ service; and further provided, anly manufacturer may employ any ten-
nis player or tennis professional at an annual salary of not less than $1,000, each
to play~ with, the balls and/or tennis rackets of soid manufacturer in tourna-
mnllts andi exhibition play, anld/or for the use of his name as a trade mark
on tennis rackets and/or tennris frame~. No dednertionll from said salary of
$1,i000 per year shall be made for failure to wvin rl ny one or several tourna-
ments, nor shall the said salary of $1,0001 include any part of the prime money
wonl by the said pllayer.
(123)





UNIVERSITY OF FLORIDA


3 1262 08584 3273







SCHEDULE D
Additional unfair trade practices applicable only to manufacturers who pro-
duce and/or wholesalers who import especially constructed athletic shoes as
defined in Article II, Section 2 of the Code for the Athletic Goods Manu-
facturing Industry.
AnnCLE I

Sac-rrom 1. No member of this division of the industry shall guarantee mer-
chandise, except as to freedom from detect, quality, grade or construction, or
replace for any other cause merchandise which has been used. No replace-
ment or repairs free of charge shall be made unless the merchandise is returned
to the factory and found defective.
Snc. 2. No member of this division of the Industry shall give credit for
the return of samples unless they are returned within thirty days from the
date of invoice.
Sco. 3. No member of this division of the Industry shall sell merchandise
on more favorable terms of credit than the following:
(a) On current orders, 30 days net, 2%0 ten days, or 2% 10th proximo.
(b) On advance spring orders shipped after November 1, and spring samples
wPhenever shipped, M~arc~h 31st dating, 2%~ if paid April 10th.
(c) On advance fall orders shipped after June 1st and fall samples whenever
shippedl, September 30th dating, 2%0 if paid October 10th.
(d) The rate of discount allowed on prepayment of invoices not to exceed
6%~ per annum.
(e) Past dsue accounts shall be subject to the legal rate of interest provided
for b~y the laws of the State governing the operation of the contract of sale.
(f) Nothing in this Section shall be deemed to apply to credit terms on
foreign or export sales.
SEO. 4. No member of the industry shall knowingly imitate the trade marks,
trade names, recognized trade numbers, slogans, or other marks of idenification
of competitors; provided that nothing contained herein shall be construed to
deprive any person of any right which may be enjoyed under any existing law.
SSEO. 5. No consignment shall be made, either directly or indirectly, that has
for its purpose and/or ellect the taking or securing of new business, and/or
that has for its purpose or effect the taking or keeping business away from a
competitor. It is the intent of this section, and it shall be so construed, to
permit a manufacturer by consignment to keep his own customers, who lack
working capital in business or to salvage an account.
Snc. 6. No member of this division of the industry shah give trophies or
other things of value for the adoption or use of any merchandise by any team,
club, association, league, or eduentional institution.
(124)