NATIONrAL RECOVERY ADMIINISTRATION
CODE OF FAIR COMPETITION
RUG CHEMICAL PROCESSING
For sale by the Superintendent of Documents, Washington, D.C. - P~rice 5 cenLa
Approved Code No. 355
Registry No. 214--05
AS APPROVED ON MARCH 23, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Docume~nts, Governmnent
Printing Office, Washington, D.C., and by district ofilees of the Bureau of Foreign
and D~omestic Commeree.
DISTRICT OFFEICES OlF THE DE$PARTMENT OF COM6MERCB
Atlanta, Ga.: 504 Post Ofi~ce ]Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: ('ilnhumbe of Commerce Building.
Cllarlledton, S.C.:. Chamber of Commerce BSuilding.
Chicago, Ill.: Suite 1706, 201 North WVells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce B~uildling.
Detroit, Mich.: 801 First Nationlal Bank Building.
Houston, Tex.: Chamber of Commerce B~uilding.
Indianapolis, Ind.: Chamber of Conynterce Building.
Jacksonville, F~la.: Chamiber of Comumerce Buildinrg,
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Bfroadway.
Louisville, K~y.: 408 Federal Building.
~Memphis, Tenn.: 229 Feder~al Building.
Minneapolis, Minn.: 213 Federal Building.
Newv Orleans, La.: Room 225-A, Custombouse.
New York, N.Y.: 7i34 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: C'hambecr of Commerce Building.
Portland, Oreg.: 215 Nrew Post Office Building.
St. Louis, Mo~-.: 506 Olive Street.
San Frautelsco, Calif.: 310 Customhouse.
Seattle, 'ash~.: 809 F~ederal Office Building.
Approved Code N'o. 355
CODE OF FAIR COMPETITION
ReUG CHEMICALI PROCESSING TRADE
As Approved on MVJarchr 23, 1934
CODE OF FAIR COMrPETITION FOR THE Roo CHEMIICAL1 PROCE8SSQ INGLDE
An application having been dully made p~ursuant to and in full
comlplianlce with the provisions of Title I of the Na~Jtional1 I~ndustrial
Recovery Act, approvedl Junle 16, 1933, for approval, of a Code of
Fair Comnpetition for the Rug Chem~ical Prc~cessinga Trade, and
hearings having been dluly heldl ther~eoni andi the annexed report on
said Code. containing findings with~ respect thereto, having been made
and directed to the President:
NOW'. THEREFORE. on b~ehalf of the Presidtent of the UCnited
States, I. Hugh S. Johnson, Adm~inistrator for Industrial Re-
covery, pursuant to author~ity vestedl inl me by Executive Or~ders
of the President, including Executive Orderl N~o. 6543--A, datedl
December 30, 1933, and otherwise; do hereby incor~porate byT reference
said annexed report and dlo find that saidl Code compylies i~n all
respects w~ith thle pertinent provisions and will promote the policy
andi purposes of said Title of said Act; anid do thereby order that
said Codle of Fair Comlpetition be, and it. is hereby approved.
Honc S. JoHNSON,
Admin~istra~tor of Inldustr'ial Recovery.
A. D. H'HITESIDE,
MVarch 3, 1934.
483 000 4 25-129-34 ( 365 )
REPORT TO THE PRESIDENT
Thle Whizte H'ouse.
Smn: Thie Hearing on the Code of Fiair Competition for the Rug
Chemical Processmng Trade was held in the Ambassador H~otel,
Wzashington, D.C., on Januaryr 4, 1934. The Code, which is at-
tached~c, -was prew~cnted by duly qualified and author~ized repres:enta-
tives of the trade, comnplying with statutory requirements, said to
represent 100 percent in number and volume of the trade.
In accordance with the custoinarly procedure, everyone present
who had filed a request for an appenlarac~e was freely heardi in public,~
and all statutory and regulatory requirements were complied with.
TIhe provisions of this Code have been ap~provedc- by the Indus-
trial Advisory ]Board, the Consumers' Advisory Board, the Labor
Advisory Board, the Legal Division, anld the Division of El.onomic
Research and Planning.
CHCARACTEISTlICS OF THE TIL1DE
A large nmlwrl~~l of antique and semi-antique Oriental rugs hanve
entelred into this country during the past forty or more years, but
thne source of supply from the Nlrear ]East b~ec~a mec exhausted in a rela-
tively short time. An increasing demand for reprocdulctions stimnu-
lated the! weaving of new rugs especiallyT for the American market.
However, new Oriental rugs are not readily marketable in this coun-
try, owing to their crudeness in texture and harshness in color. This
led to the formation of a line of trade peculiarly adapted to process-
ing rugs. It might be said that thepoese edbthmmer
of this trade are the results obtainr(Ioed fter a~~~ nu th mmbero e rs o
This trade is a highly integrated one, in which prosperity is de-
pendent upon the quantity of Oriental rug imports and in wh~ichl
service charges are determined by personal contacts and barg~aining~
of the members of this trade with the importers. Perhaps, more than.
90 percent of Oriental rugs imported in this country are turned over
to this trade. These rugs pass thrroughi a chemical mercerization
pr'ocess which produces a lustre or sheen over the original harsh
woven pile surface. After this process, some rugs are h-and colored
mn order to reduce the vivid colors woven in thnem. The application
of each color requires a separate wvashinga and drying. WCChen neces-
sary, the rugs are sheared, and finally~ the fringes are trimmedi and
tinted. It takes approximately three weeks to complete this work.
As this work is of a hlighlyT specializedl nature, requiring knowl-
edge not commonly gained in this country, successful operation in
the business has been limited to line firmsl, of which eight are lo-
ented in thie metropolitan area of Newn York City and one in Nutley,
New Jersey, not far away.
On the basis of figures submitted by the tradle, it is estimatedl that
there wrcle approximately 1,300 employees in the Rug Chemical
Processing Trade in 1929, and that empyloyment declinied about 60
percent between 1020 and 1933.
Hours of employment are limnitedl to 40 hours in any one wFeek,
with the following; exceptions: manintenance emnployee~s shall be~ per-
mitt~ed to w~ork 48 hours in any one wreek~ and watchmlen ar~e per-
mitted 56 hours in any one week; executives, foremen, and super-
intendents are allowed unlimited hours. During a peak periood not
to exceed mo~lre than 8 weeksa in the Springr and not more than 12
weeks in the Autumn, maintenrance! employees may be permlitted to
work 5i4 hours in any one weekr and other employees maiy be per-
mitted to work 48 hours mn an~y one w~eek, provided that time and
one third (11/3) shall be paid for hloui rs orkied in exc~es of thle
maximum hours provided in the Code.
Thle Code provides minimum wrages for accounting, clerical and
office employees at the rate of $i15.00 a weekr in cities of over 500,000
population; $14.50 a week; in any city between 250,000 and 500,000
population; and not less than $14.00 a week in any place of less than
250,000 population. No other emplloyee shall be paid at less th~an
the rate of 30 cents an hour. Howevier, lear~ners, office boys and
messengers may be paid 80 percent of the prescribed minimum rate
Provisions have been incorporated in the Code to eliminate unfair
practices which have developed in the trade to the dletr~iment, of all
interests. The trade has sought, to eradicate suchn p~ractices bay
making them violationls of the Code.
The Deputy Administrator in his final report. to mie on said Ciode
having found as herein set forth and on the basis of all1 the p~roceed-
ingqs in this matter:
I find that:
(a) Said Code is well designed to promote the policies and- pulr-
poses 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 diminiish the: amount thereof and will
provide for the general welfare by prom'oting th~e organization of
industry for t.he purpose of cooperative actions among the trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanictionis andc supervi-
sion, by eliminating unfair competitive practice, by promoting the
fullest possible utilization of the present production enpacity of
industries, by avoiding undue restriction of productioon (except as
may be temporarily required), by increasing the consumnption of
industrial and agricultural products through increasng~r purchasinga
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitation industry.
(b) Said t~rade normally employs not more than 50,000 employees,
and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nenlt provisions of said Ttle of said Atlct, including without lianita-
tion Subslection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that. the applicant
asso-ciation is an indulstr'ial association truly r~~1ep;eresnatie of the
aforesidi~ tradce; and that said association imposes no inequitable
r~esitric~tionsl on admission to membership th~erein.
(d) Tlihe Code is not designed to and ~will not permit m~onopolies
or monopolistic practices.
(e) T'he Code is not designed to and will not eliminate or oppress
small enlterpr~i4.es and wNill not operate to discr1imil~!n~ateaainst them.
(f) Those Fengagred in other steps of the economic process have
not b~een deprived of the right to be h~ealrd prior to approval of said
3For these reasons, this Code has been applr~oved.
HUGH S. JoHNsoN.
MARCH 23, 1934.
CODE OF FALIR COMP[IETIITION FOR THE RUIG CHEM~nICAL~
To ffetuae te policies of Title I of the National Industrial
Recovery Acet, the folinprviosrestbshdaaCdeo
Fair Competition for the Rug Chem~ical Processing~ Trade, and shall
be the standard of fair competition for such trade and shall be
binding upon~ every members thereof.
ARTICLE II EFINITIONS
The terml Rug Chemical Processing Trade as used hlerein
includes mnercerizing, recoloring and finishiing domestic and imported
r~ugs and carpets.
The terml employee '" as used herein includes any person engaged
in any phase of the trade in any capacity receiving compensation
for his services, irrespective of the nature or method of payment of
sulch compensation, except a member of the t-rade.
The term employer as used herein includes anyone by5 whom
any such emiployee is comnpensated or employed.
The term "' executive as used hereinl includes any employee solely
responi.rible for the management of a divisioni of the trade or of a
The term memlber of the trade includes anyone engaged in th~e
trade as above definedl, either as an employer or on his own behalf.
The term mercerization only as used herein means thle applicat-
tion of a chemical mlerc~erization process to rugs, which acts upon the
fibre and produces a sheen or lustre.
The termn "melrer~ization and color work "' as used herein means
the application of a chemical mercerization process to rugs, which
acts upon the fibre and produces a sheen or Ilustre, and the recoloring
of the individual patterns.
The termn finishing as used herein means the shearing of sur-
face and the repairing of fringes on rugys to improve their appear-
ance incidental to meercerizinng andc coloringa.
The term trade arena as used herein shall mean any area
designated as a trade area by the Code Authority and approved
by the Administrator.
The termn "' association "? as used herein means the Rugr Chemical
Processing Association--a Trade Association.
The terms President ", "'Act ", and ''Admlinistrator '" as used
hereinz shall mean respectively the: President of t~he United States,
Title I of the National Industrial Recovery Act, anid the Administra-
tor for Industrial Recovery.
Population for the purposes of this Code shall be determined by
the 1930 Federal Census.
1. Except as hereinlafter expressly stipulated oth~erwise--
(a) No maintenance Eimployee shall be permitted to work in excess
of ory-ight (48) hours in any one (1) week.
offr(b) N other employee shall be permitted to work in excess of
forty (40) hours in any one (1) week.
2. During a p~eakl period not to exceed more than, eight (8) weeks
in the Spring and nlot more than twelve (12) weeks in the Autumn,
maintenance employeesc may be permitted. to work fifty-four (54)
hours in any one (1) week and other employees may be permittedl
to work;I forty-eight (48) hours in any one (1) week, providing that
time and one third (1%/) shall be paid for hours w\orkled in excess
of the maxninunnll hours provided in. Section 1 (a) and (b).
3. The mlaxilnuanl hours fixed in this Article shall not apply to:
(a) Watchzmen. who may not be permitted to work more than.
fifty six (56) hours in any one weekr and in no case mlay they work
more than six (6) days in any seven (7) day period.
(b) Executi~ves, foremen and superintendents recei~vingf a sala~ry of
thirty-five dollars ($35.00) or more a week.
(c) Employees on emergency maintenance or emergency repair
work involving breakdowns or protection of life or property, burt in
any such cases at least onte and one third (1%/) times the normal
rate shall be paid for hours worked in exc~ess of the maximum hours
provided in Section 1 (a) and (b).
4. No employer shall knowingly permit any eplo~ylcee to work for
any time whichi, when totaled with that already performed with an-
other employer or employers, exceeds the maximum permitted herein.
5. No employee shall be permitted to work in excess of six (6)
days in any seven (7) day period.
1. No employee except as hereinafter specified shall be paid at less
than the rate of thirty cents ($.30) an hour.
f2. No accounting, clerical or o~flice employees shall be paid at less
than the rate~ of filfte~en dollars ($15.00) a wee~k in any city of over
500,000 population, or in the trade area of such city~; nor less thanl
fourteen dollars and fifty cents ($14.50) a week in any city between
250,000 and 500,000 popullation, or inr the trade area of such city-; nor
less thanr fourteen dollars ($14.00) a wee~k in any place of less than
3. The wages and rates of pay of employees receiving more than
the minimum wages and rates hereinabove prescribed shall be re-
adjusted so as to preserve equitable differentials. All such adj ust-
ments mad~e since June 16, 1933, shall be reported to the Code Au-
thorit~y within sixtJ (60O) days of the effective date of the Ctode.
4. No member of the trade, by reason of the adoptionl of this Code,
shall reduce any employee's total weekly wage or that wage actually
received on June 16j, 1933, whichever shall be the gr'eater, whether
based on an hourly rate or a weeky wage, notwithstanding the fact
that the hours of works of suchl emnploye'es may be reduced.
5. This Article establishes a minimum rate of pay, regardless of
whether an. empllloyee is compensated on a time-rante, piecework, or
6. The minimum wage provided for in Section 1 of this Article
shall not apply to learners, office boys, and messengers, provided
that the minimum rate of compensation for these employees shall
not be less than eighty percent (80%b) of t.he minimum rates estab-
lished in Section 1 of this Article, and the total number of persons
so comipensated shall not exceed tenl p,,,erent (0% of the toal
number of emplloyees engaged by an employer. Learners shall not
be emlployed as such for' a period in excess of eight (8) weeks.
ARTICLE V- GENERAL LABOR PROVISIONS
1. No person under seventeen (17) years of age shall be employed
in thle tr~ade. In any State an emnployer shall be deemed to have
compliedl with thiis provision if he shall have onl file a certificate or
permit dluly issued by the authority in such Strate empowered to
issu~ie emp~loymellnt or age certificates or permits, showing that the
empJ~. U"'" ""'Inloyee'P is of thep requi~rre nage.
2. Employees shiall have the right to organize and bargain col-
lectively through renpresentatves of their own choosmgr and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, inl the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
;3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
hlis own choosing.
4. Emiployers shall comply with the miaximum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
5. Every employer shall make reasonable provisions for the saft
and health of his employees ait the place and during the hou rsof'
their employment. Standards for safety and health shall be sub-
mitted by tlie Codet ALut~horityl to the Admlinistrator within six (6)
months after thle effective date of thiis Code. Upon approval by
the Administrator such standards shall become operative as a part
of this Code.
6. Within each State: this Code shall not supersede any laws of
sucrh States imposningr mor~e str~ingrent requirements on employers rega-
ulating thle age of eplnloyees, wa~ges houlrs of workl, or health, fire or
general working conditions than under this Code.
7. Emlployers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
8. Each employer shall post complete copies of this Code in con-
spicuous places accessible to employees.
ARTICLE VI--ORGA4NIZTION, POWrERS AND DUTIES OF THE CODIP
ORGANIZATION AND CONSTITUTION
1. There shall forthwith be constituted a Code Authority con-
sisting of :
(a) Three (3) representatives of the trade or such ot her number
as may be approved from time to time by the Administrator, to be
selected as hereinafter provided.
(b) Such additional memlber~s, without vote, not to extceed three
'(3), as the Administrator may appoint to represent such groups or
interests or such governmental agencies and for such periods as he
2Z. Thne r~epretse~ntaives of the tr~ade? shall be selected inl the fol-
(a) Three (3) individuals shall be appointed by the Boardt of
Directors of the ]Rugl Chemical Processing Association.
TIhe foregoing individuals shall be appointed immediately after
the approval of this Code, and shall hold office unrtil Decemnber 31,
1934, and thereafter until their successors are appointed and qu~alify.
Their successors shall be appointed for a term of one (1) year on or
before December 31st of each year. Appointments of successor~s
(which may inc~lllue reappointments of or'igmal individuals) shall be
mlatle, and~ vacancies for unexpired terms may be filled in the samle
manner and by the same agencies as the origmal appointments.
(b) Additional representatives of the trade mray be ppointedl by
the Administrator or selected in a manner pr1escribed by him.
3. Each trade or industrial association directly or indlirectly par-
ticipating in the selection or activities of the Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) sutb-
mit to the Administrator true copies of its articles of association,
bylaws, regulations, and any nmlendmrnents when mande ther~eto, to-
gethler with such other information as to mlembershrip, organization,
and activities as the administrator may deemn necessary to effectua~te
the purposes of th~e Act.
4. In order that the Code Authority shall at all times be truly
representative of the trade and in other respects comply with the
provisions of the Act, the Administrator may pr'escr'ibe sulch~ 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, mnay require an
appropriate modification in the method of selection of the Code
5. Members of the trade shall be entitled to participate in and
share the benefits of the activities of the Code Author~ity by assent-
ing to and complying with the requirements of this Code and sus-
tamning their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Admin-
istrator, on the basis of volume of business and/or such ot~her factors
as may be deemed equitable.
6. Nothing contained in this Code shall constitute the members
of the! Code Authority partners for a~ny purpose. Nor shall any
mnemnber of the Code AuthorityV be liable in any manner to anyone
for atny act of anly other memboer, officer, agent or emnploy~ee of the
Code Authority. N~or shall atny member of the Code Authority ex-
ercising reasonable diligence in the conduct of his duties hereunder,
be liable to anyone for any action or omission to act under this
Code, except for his own wilful misfeasalnce or non-feasance.
7. If the Administrator shall. determine that anyq action of the
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public interest, the Adminisitrator may require that
such action be suspended to afford~ an opportunity for investigation
of the merits of such action and further consideration by such Code
Authority or agency pending final action, which shall not be effective
unless the Admini~strator app~oves or unless hre shall fail to dis-
approve after thirty (30) days' notice, to him of intention to proceed
with such action in its original or mnodified form.
PO'WERSIL AND DTELS
8. The Code Authority shall have the following further powers
(a) To insure the ex~cut~ion of the provisions of this Code and to
provide, subject to rules and regulations established by the Admin-
istrator, for the compliance of thre trade with thre pr1ovisions of' the
Act; provided, however, that this shall not be construed to deprive
duly authorized aovernmlental agencies of their power to enforce
the provisions of ijhis Code or of the Atct.
(b) TIo adopt b-laws and rules and regulations for its p~rocedulre
and for the adminlstration, 1 and enforcement of this Code, in accord-
ance with thre powers herein granted, and to submit the same to thre
Administrator for his appr~oval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as thre
Adriinistr~ator mnay deeml necessary to effect the purposes of the Act.
(c) To obtain ~from members of thre trade such information and
reports as are required for the administration of thre Colie, and in
addition to information required to be submitted to any Codle Au-
thority all or any of thre persons subject to this Code sh~all furnish
such statistical information as thre Administrator miay deeml neces-
saryr for the purposes recited in Section 3 (a) of the Act, to suich
Federal and Sitate Agencies as thie Administratorr may designate;
nor shall anything ini this Coder relieve any person of existing obli-
gations to furnish reports to gov~ernmiental agencies. Nluo indcivid~ual
repor~t- shall be disclosied~ to any other members of the trande or any
other party except to suchi goverllmnment agencies as may be dlirccted
by the Administrator.
(d) To use such trade asisociations and other agencies as it. deems
proper for the carrying out of any of its activities provided for
heretin, provided that. nothing her~ein shall relieve tihe Codle Author-
ity of its duties or responsibilities under thlis~ Code andi that such
trade associations and agencies shall at all times be subjct to and
comply with the provisions hereof.
(e) To appoint a trade practice committee which shall meet with
the trade practice committees appointed under such other codes as
may beP related to ther trade for thle purirpose of formulit~ing fair
trade practices to govern the relationships between employers under
this Code and under such others to the end that such fair trade
practices may be proposed to t~he Aldministrator as amendments to
this Code and such other codes.
(f) To secure from members of the trade assenting to the Code
an equiitable and prlojpor~tionate payment of the r~easonable expenses
of maintaining the Code Auth~ority and its activities.
(g) To cooperate with the Administrantor in regulating the use
of anly N.R.A. insignia solely by those members of thle trade who
havre assenltedt to, and are comnplying wcith, thnis Code.
(h) To r~ecommeiintl to the A-dmiinistratori any ac-tioni o mneasures
deemedt~ advisable, inludlrring further fair trade practice provisions
to govrn~~CI members of the trade in their relations with eachl other or
wit~h other trades~i or indlustr~ies, measures for industrial planning,
and. stab:ilizationl of emplllo~yment; and including modifications of this
Code which shall become effective as part hereof upon appr~oval by
the Admzinistrator after such notice and hearing as he may specify.
(i) The Code Aulthor~ity shall cause to be formulated on acc~ount-
ing .-y'stem" and methods of cost finding and/or estimating capable
of use by all members of the trade. After such system and methods
have been formulated, full details concerning them shlall be made
available to all members. Thereafter all members shall determine
and/or estimate costs in accordance with the principles of such meth-
ods. The Code Authority shall also devise arnd establish? subject t.o
the approval of the Administrator, a uniform invoice and receipt
adaptable to the nleed's of the trade.
ARTICLE VII-OPEN PRICE DATA
1. Each member of the trade shall file with, the Code Authority
and publish to the trade lists of his prices and also any revision o
prices, which shall be inunllediately forwarded to all members of the
trade. If anly member of thle trade desires to revise any of his prices
he shall file with the Code Authority any such revision, which shall
become effective immediately. Any such revision shall bje forwarded
immediately to all mtemnbers of the trade, who, thereupon, may file
any revision, which shall become effective immediately.
2. No member of the trade shall sell an~y service for less than his
published list prices, except as qualified by Article 7VIII, Section 12.
ARTICLE VII[I-TRADE PRACTICES
The following practices constitute unfair methods of competition
for memllbers of the trade an~d are prohibited:
1. Using, publishing, or broadcasting any untrue, deceptive, or
misleading representation, statement, or illustration in conn~ectionl
wpith the service rendered by the trade.
2. Thonre deamtondut qeto nb eZf,"H~B~,~~~ cEt: na~;ompeitos b falselyQ imputing to them
dishnorbleconuct quetioabl crditstanding, ina~bility to per-
form contracts or by other false representations or byT the false dis-
paragement of the quality of their service.
3. Giving, permitting to be given, or directly offering to give, any-
thing of value for the purpose of influenemga or rewIardn the action
of any employee, agent or: :repres-entative of another in relation to
the business of the employer of such employee, the pr~incipal of such
agent, or the represented party,. without the knowledge of such em-
ployer, principal or party. This provision shall not be construed to
prohibit free and general distribution of articles commonly used for
advertising except so for as such articles are actually used for com-
mercial bribery as herein defined.
4. Inducing or attempting to indluce the breach of a contract be-
tween a competitor and his customer, or interfering with or obstrurct-
ing the performance of any such contractual duties or services.
5. Seculringr confidlential information concerning the business of
a competitor by a fale or mnisleading statement or r~epretsentation,
by' bribery, or byr anyr other unfair mlethod.
6f. TChe se~cret~ payment or allowances of rebates, r~efunds, commis-
sions, credits, or unearned discounts, whether in the form of money
or ot~herw\ise, or the secret extension to certain customier~s of speccial
services or privileges not exitended to all customers on. like conditions
7. Intentio~nally short merrn me rchaIIIn dli e delivered for
8. Pur~cha~sing rugs from any7 customer underl a claiml that they
are d-amagred uinless the rugs are aIctuially damnageld.
O. Q~uotingj termiis other than those contained in the unifo-rmn
invoice or receip~t dlevisedl by the C'ode Aulthority alllnd approved by
the Admllinistrattor or plostantling bills for mlercer~izationl only or meitr-
cerization andl recolor w\ork.
10). Pur~chasingr mlerchandise fr~omi n customer, oer adnci\nn~ng mocney
or extendicing credit. to a customers~ or prospective customier for the
pyn!ment of implortZ duties, or fiinancing a customers or. procspectivee
customer to unfairlyl infliinene suchl customer for the purpose of so-
curingr and or obtainingt his b~usinerss.
11. Labelin g and or chlarging for a rug other than by) th~e namne
recognizedl in the tradc~e or' mis;representing thle gad~e of any rugr
as other than the grrade recognized in the trad~e.
12. Re~nder~ing any service at a price below tle: cost of su~chl sezrvice
determined in a:cor~dance with the cost accounting plaln detvisedl by
the Cod~e Authority and approved by the Administrator, pr~ovided,
however. that any member mary meet the price of a competitor that
is not in violation of this Code.
1. This Code and2 all thie provisions thereof are expresslyr made
subject to the right of the President, in accordance with the provi-
sions of sulbsection (b) o~f Section 10 of the National Indust~rial
Recovery Act, from time to timne to cancel or mnodify any order
approval, license, rule, or regulation issued under Title I of said
Act and specifircally, but. withoutt limitation, to the right of the
President to cancel or modiify his approval of this Code or any con-
ditions imposed by hlim upon his approval thereof.
2. This Code, except as to the provisions required by the Act,
may be mnodified on the basis of experience or chanlgres in circrlum-
stances, such mnodification to be based upon application to th~e Adr-
miinistrator and such notice and hearing as he shall specify, and
to become effective on approval of the Administrator.
No p~rov\ision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to~ eliminate, oppress, or discr~imi-
nate agaillst small enterprises.
ARTICLE XI EFFECTIVE DATE
This Code shall become e~ffec~tive on the first Monday.~7\ after its
approval by the Administrator.
Approvedt~c Clode No. 355.
Registry No. 214-05.
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