For sale by the Supe~ntendent of Documents. Washington, D).C: Price 5 cents
Approved Code No. 335
Registry No. 231--08
NATIONAL RECOVERY ADM1INISTRATION
CODE OF FAIR COMPETITION
WE Do OUR PALRT
GOVERNMENT PRINTING OFFICE
WASHlINGTON : 1934
AS APPROVED ON MARCH 16, 1934
This publication is for sale by the Superintendent of Documents, Government
Printing Office, W~ashington, DOC., and by district oftfices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMIMERCE
Atlanta, Ga.: 504 Post Office Building.
B3irminzgham, Ala.: 257 Federal Building.
Boston, MC~ass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston1, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
.Dallas, Texr.: Chamber of Commerce Building.
Detroit, Alil~h.: 801 First National -Bank Buildling.
Houston, Tex.: Chamber of Commerce Building.
I~ndianapolis, Inzd.: Chamber of Commerce Building.
Jacksonville, ]Fla.: Chamber of Comzmerce Building.
Kansas City, Mo.: 1028 Basltimore Avenue.
Los Angeles, Calif.: 1163 South 'Broadway.
Louisville, Ky.: 408 Fedleral Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, MI~nn.: 213 Feder~al Building.
New Orleans, La.: Room 225-A. Customhouse.
New YPork, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commerciatl Trust Buildingl.
Pittsburgh, Pa.: Chambher of Commerce Building.
Portland, Oreg.: 215 Newr Post Office Building.
St. Louis, M~o.: 506 Olive Street.
Banl Francisco, Calif.:; 810 Customhouse.
Seattle, WaSh1.: 800) Federal Office Building.
Approved Code No. 335
CODE OF FAIR COMPETITIONS~
ART NEI~I)lEDVL~EWORKZ INDUI)C)STRY
As Approved on March 16, 1934
CODE OF FAIR COMPETITION FOR THI-E AnT NEEDLEWOPRK INDUSTRY'
An application having been duly made p-ursonntlt to and in full
compliance with the provisions of Title I of the National Industrial
RecoveryT Act, approved Julne ;16, 1933, for approval of a Code of
Fair Competition for the At~rt N~eedleworkT Indstry and hearings
having been duly held thereon and the annllexed report on said Code,
containingr findings with r~es~ec~t thetr~eto, having been made and
directed to the President:
N~OWV, TH]EERIEFIiORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrantor for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Exrecutive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby. incorporate by r~efer~ence said
annexed report and dofnd that said Code complies in all respects
with the pertinent provisions and will promote the policy and pulr-
poses of said Title of said Act; and do hereby order that said Code
of ]Fair Competition be and it is hereby appr~oved.
HuouH S. JoHNSON,
Adinnifitstraor for Industrial Recovery.
ASlpprova~l recommended :
A. D. W7HITESIDE,
465824*-- 2-80--b 34
REPORT TO THIE PRESIDENT
The White Ho~use.
SIR: This is thne report of the Administrator on the application
for, and thne public hearing on, the Code of Fair Com~pet~ition for
the Art NTeedcl'ew\Tork Ind~ustry3 as proposed byr the Art Needlework
Association. The public hearing was conducted in Washington on
January 16, 1934. Every person who requested an appearance was
freely heard in accordance with statutory and regulatory require-
TIhere are estima~te~d to be 62 concerns in the Industry, 37 of which
are members of the Assoc~iation and account for approximately 80'
of the total volume of business according to the figures p~resentedl
by the Art Needlewo~rk Association.
ECONOMICAL AN;D STATISTICAL MATERIAL
The volume of sales in 1929, which was thne peak year, was $22,-
000,000 and thle total employment was 5,000 employees. The esjti-
mated vo~lumel of sales for 1933 is set at $14,000,000 andl the number
of emlployees at 3,500.
The representatives of the Industry claims that the employment
figures will be inlcreasned by at least 15170 when the Code goes into
effect. There will also be an increased purchasing power for the
individual employee under thne Code.
RESUMET OF CODE PR(,\ISIONr S
The Code establishes forty (40) hours as the basic w\ee~k for pro-
dulCti(,l and thirteen ($13.00) Dollars per work: week as the minimumn
rate of pay.
It is to be noted that there is a provision which outlaws "L home
work by April 1st, except for the finishing of samples an~d display
models not intended for resale.
Trade prnc~tices~ are standard and their application should bring
about stabilizedl competitive cond'itionls.
The Dep~uty Administrator in his final report to me on said Code
having found as heretin set forth and on the basiu of all the proceed-
ings~ in this matter:
I find that:
(a) Said Codle is well dlesignrd to promote the policies and pur-
poses of Title I of the Nat.ionnd Industrial Recovery Act, includingr
r~emlova;l of obstructions to the fre~e finw\\ of inte~l~lrstte andi fore~tign
commerce wvhichr tend to rlimlinlish the amount thereof and will p~ro-
~vide for the general'~ l welfare' by pr'cllOoting the3 organrijzatio)n of
Industry for the purpllose of rlnoperlative action amllOngc the tradetc
groupsl;, byr induncingr andl malintaining u~ nitedl action of labor and
Iiini"l'll lgnile t1 under Rdeqte gov,\el~llrnmentl srllc'icflan anld iiupe-
vision, by eliminai~ting unfair competit ivet practices, by promliotingr
the fullest possible ultilization of thne pre-enrt prodluctive capacity
of Industries, by avoidingr undluer es :(Crlict fic of production (except
as mayT beP tmpollrla~rily requrllred),l~ by ;inrr~:~crein the consumption~tio
of industrial and aIgrienirtural produlc-tsi through increasing~ purll-
chas~ing power, by redullcinga and relieving~ unemployment, boy iml-
provingi st:ltla drds of labor, anld by othleriv\i.cce rehlabilitating
Icrit(b) $aid Industry Ionormlly employs not mor~e thanl 50,000 em-
p'loyees and is not canssified~ by me as a mal~jor Indus~try.
(c) The Code as apprloved~c complies in all respects with the perti-
nent pr,1ovisio~ns of said TCitle of said ALct, including without limi-
tation Subs~ec~tion (a) of Section 3, Sublsc~ction~ (a) of Section. 7, andt
Subsection (b) of SctC'ion)l 10 thereof, and that the applicant asso-
elationl is an industrial association truly repr~esetfative of the afor~e-
said Industry; andt that said association imploses nlo inequitable
restrictions on admissionl to membership therein.
(d) The Code is not desig:nedl to and will not p~elrmit m'onopo'lieS
or monopolistic practices.
(e) T'he Code is not cle igneCd to and will not eliminate or
oppress small enlterprises and will not operate to discriminate
(f) Those engaged in other1 steps of the econmc~l~c process have
not been deprived of the right to be heard prior to approval of said
For these reasons, the Codle has been appr~ovedl.
HuanI S. JoRNwon,
A d'min istrator.
Mr.\nea 16, 1934.
CODE OF FAIR COMIPETITIIONJ FOR THE ARTIL NIJEED)LE-
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
E'Fair Competition for the Art Needlework Industry, and shall be the
standardl~c of fair competition for such Industry and shall be binding
upon every member thereof.
The term "Art Nueedllework Industry '" as usecd herein includes the
stamping and/or importing and/or or~iginnI sale of goods for art
need~lework; the processing and/or Ulnpo(rtationl of wTor~stedl, silk,
rayon, linen, and cotton yarns and other fibres exclusively to be used
for hand embrJ1oidery,3 hand-knitting, crochletingb, and other art
n~ed~llwor~k; the sale of art needlewvork accessories and tapestry
needlepoint, and uc~h branches or subdivision:, thereof as may from
time to timle be included under the pr1ov-i ions of this Code. This
definition does not include the "'manufacture of sewing, cl~rohet, em-
broieryand/or darning cotton thread as ilc~or~por~ated in the
Crode of air C'omlpetition for the C~otton T'extile Industry by amend-
mnent approved on N~ovemnber 8, 1933.
The term employee as usedt herein includes s arnyolne enrngged in
the Industry in any capacity receiving compensation for his services,
irrespective of the nlatur~e or methods of payment of such compen-
The terml employer as used herein includes anyonlle by whom
anly such enip-loyee~t is compensated or employed.
The term member of the Industry as used hlerein includes any-
one engaged in the Industry as above defined, e~ither~ as an employer
or on his own behalf.
The termsn President ", "'Act ", and "LAdministrator as used
herein shall mean r~espec~tively the President of the Unitedl States,
Title I of the National Industrial Recovery Ac~l~Lt, and the Admin-
istraztor for Industrial Recovery.
1. Malcximum~ Hiours.--No employee, except~ outside salesmen and
employees engaged;~e l in a malnageria~i l enpac;ityv who receive not less
than Thirty-finve ($35.00) dollarf~s a wee.clZ shall be permitted to wor'k
in ecescss of forty (40) hours mn an~y one weekll or eighrlt (8) hours in
any twfenty-four (24) hour pleriod, exceptlt that an office employee
may be permliiteted to w~orki not mnore tha;n sixty (60) additional hours
in any euflinlendar~ yr but not in ecesccs of four (4) hoursl in anly one
wsreek provided that time and one-th~irdc be paid for such add~itional
2. Exrce~ptions~ as to Hiours. T~he n1illxinnon hours fixedl in the
foregoingr! section shall not apply to any employee on emerlgencyv
mnainltelnance or emlelrgency repair work invrol~vinga breakdme\\ ns o~r pro-
tection of life or prope~tyr, but in anyT such. special case at least one
and one-third timles his normal rate shall. be paid for hrourls workedl
in excess of the maxsinunnl hours hlereinl provided.
3. Sflltandrd WCeek.-NPJo employee shall be permitted to wvorkr mlore
than six (6) days in any seven (7) dayT period.
4. Employer WorkXiing as Emp17/70loee.--Any member of the Indrustr~y
wvho doe~s the w~ork of, or assists in, the lcrtuanl mnanulfat tlre of prod-
ucts of this Industry, shall be subject to the prov\iis~lion of this Code
as to hours of labor.
5. Empiloymnent by Sc~rcal~n Emnplo~ers.--No emnploy~er shall knowr-
ingly pelrmit, any emnploy~ee to work for any timle wh-ich. whnl~- totaledc~
with that alreadn~y performed with ano3thler emp~lloyer, or employers,
in this Inldustry exceeds the mla ximumll permitted herein.
A HT'IIC.LE. 17 E ~AGES
1. 11/inimlum1 Wage.--No emnployee shall be paid at Iless than th-e
rate of TChirteen ($13.00) Dollars per week of forty (40) hours.
2. Piecetoork; Compensati~~f ionl--3IinimumC77 WTages.-This Article es-
tablishes a mlinlinuanll rate of pay, irrespective of whether an employees
is actually comnpenlsated on a time rate, piece-work or other basis.
3. Wages Above M7inimrumn.-o employee whose hours of workl~l
per~L week are reduced by the provisions of this Code shall be paid
less than he or she wras paid f~or the normal full time weekr in the
four weeks ended June `17, 1933. A definite plan for thle adjustment
of those wages above the minimum herein prescribed shanll be p~re-
sented to the Admlni~~stratorr for his alpprovall within thirty (30) days
of the effect ive date of this Code.
4. Fenwl1(1e Emp~ lolcesi.--F~emale employees~ performingr subs~tanI-
tiarlly thle same work as male employees shall receive the samel rate of
pay as ma"le employees.
ARTICLE V-G-CENERAL, L-ABOR PIROY. ~(JIOS
1. Child Labor PIrovision~,.-Nl o p~erson~ under sixteen (16) years of
agre shall be employed in the Industry, nor anyone undler eigrhteen
(18) years of agre at op~erat-ions or ocenpa>tions hazardouls in naturle
or detr~imental to health. The Code Aulthorityr shall submit to the
Admninistrator not later thann sixty (60) days aYfter' the effective date
of thiis Code, a liit of such occupations. I~n anly Sjtate, an1 employer
shall b~e d:eemled to have complied with thiis cprovis~e tion iy heshll
hlave on file a certifiente. or permit. duly :issled yteatoiyi
such State emlpowveredl to issue employment or age~ certificates or
pemiints, .showingi that the emplloyee is of the r~equired agre.
2. Provis~ions froml) the Act.-Iln comnpliance. withl Section ? (a)
of the Act, it is prov~idedl:
(a) Employees shall have the right to organize and bargain col-
lectively through Ireplc~resentative o~f their own choosing, and shall
be free from th~e interference, restraint, or coercion of employers of
labor, or their agents, in thle designation of such reprleseltatives or in
self-organizattion or in other concerted activities for the purpose of
c~ollectivet bargaining or other mutua~ll aid or protection.
(b) No employee and no one 6ceeking~ employment shall be re-
quired as a condition of employment to join any company union or
to reframn fr~om joinmng, organizing, or assistmng a labor orgaruization
of his own c~hoosin~g and
(c) Employers shall comply with the mln xilnum hours of zlbor,
minimum rates of payT, and other conditions of employment,
approved\''c or p'recr~'ib~ed by the President.
3. State La tes.l;.-W-7ithin each State this Code shall not supersede
anly laws of such'1 State imposing more ctr~in~enlt requirements on
employers regulating the age of employees, wages, hours of work,
or health, fire or general working conditions than u~nderl this Code.
4. Rec~laJssificaction of E1~mployees.-Em~ployers shall not reclassify
employees or duties of occupations performed by employees so as to
defeat the purposes of thne A~ct or engage in any other sulbterfuge.
5. Post~in g.--E~ach~ employer shall post in conspicuous places ac-
cessible to employees full copies of Alrt id~e. III, IV and Vr of this
Code in ten point type or larger and the address of thle nenr~est
Comp' ilince Board.
6. Hliomne WorkE.--All usesubertl ls of the Industry shall arra~nger to
dlisc-cntinuel the systeml of home work by April 1, 1t934. If, however,
this provision, works an unreasonable hardship on any employer
he may, uponr appeal to the Code A~uthority and subject to the ap-
proval of the A~dministrator)I, be allowed additional time up to a total
of two (2) months in which to complete its abolishmlent.
This provision shall not prohibit home work: on the fEinishing of
samples and display models not intended for resale, but the name
and address of every employee so e~ngaged shall be reported to the
7. Discharging of an Employee.---No employee shall be d ism issed~
by ren.-.on r of making an honest complaint or giving truthful evidence
wvith respect to an alleged violation of this Code.
8. Standaclrds for Safety a~id7 Hea~lth.--Every empllloyer shall pro-
vide for the safety and health of his employees at the place and
during the hours of their employment. Staandards for safety and
health shall be submlittedl by the Code AuLlthority to thne Aidministrator
within six (6) n~monts after thle effective date of this Code.
A~RTICuE VI--Ona(.m szA.
1. Or/"' nalfvitio.-To further effectuate: the policies of thie Act,
t~he Code A1Suthority is hereby c~onstituted~t to administer this Code.
(a) The Code AuthorityT shall consist of five individuals, or such
other numllberl as maynS be approved from. timet to time by the Admin-
istrator, to be selected as hereinafter set forth, and of such. additional
membersl, without vote, as the Admninist rator', in his discretion may
appoint to reprecseti l such groups or gov,~lllerninetl a agencies as he ay
(b) T'he Code Authiority memblers s shall be selectedt as follows:
Each member of the Indlustry, who qjunlifie~s as procvided~c in Sectio~n
8 of this ~A~rticle, shall have one vote in the nclmina:tionl and election
to be arranged by the proponenlts of the Code within, one mocnth of
the effective date thereof, unless otherw\\i.-e pr~ovided,, with the
app'roval of the Admllinlihf rator'. In the inte~rim, thle ]Executive
Committee of the AtSrt NeedllewTorl Assoc~iationl shall act in this
ca paci ty.
(c) In order that the Code Authority shall at all times be truly
rIepretsentative of thre Indulrstry and in other respects comrlplyT with. the
provisions of the Act, th~e Admninistratorl may provide such hearings
as he may dleeml proper' and thereafter if he shall find that the Code
Authority is not truly representative or does not inr other respects
com~ply w'ith the provilsions of the Act, may required aIn app~ropr~iate
modlifica3tionl in the miethodl of selection of the Ciode Author~it~y.
2. Each trade or industrial association, directlyT or indirectly par-
ticipaating in th~e selection or activities of the Codt~e Aiuthority, shall
(1) impose no ilnequitable. restrictions on membership, andi (2) submit
to the Admlinistrator true copies of its Articles of Associntion, By-
Laws, regulations, and any am~endments when made ther~eto, toge~therl
with such other in~for~mation as to membership>, organization, and~
activities as th~e Administrator may deem necessary to effecctuate
thne purpos-'es of the Act.
3. Mlem~bers of the Industry shall be entitled to participate in and~
shar~e the benefits of the activities of the Code A~uth~ority and to
participate in the selection of the members thereof and to use thie
N.R.A. lInignia by assenting to and complying with the requilre-
ments of this Code and sustainingr their reasonable share of the
expense of pr1epa"ration, presentation and administration n of this
Code. Such reasonable shanre of the exp~enlss of admlinistrastion shall
be determined by the Code Authority, subject to review by the
Administrator, on the basis of volume of bulsine~ss and/or such
other factors as may be de~emed equitable.
4. Nothing contained in this C'ode shall constitute the members
of the Code Authority partners for any purp~ose. Nor shall any
member of th~e Cod-e Authority be liable in anyV manner to anyone for
any act of any other member, officer, agent, or employee of the Code
Authority exercising r~easonab~le diligence in the condluc~t of his duties
hereunder nor be liable to anyone flor any action or omlission to act
under the Code, exceptlt for his own willful muisfeansn ce or nocn-
5. Powersw anld DuAties.--The Codle Authority shall have t~he follow-
ing powers and duties in addition to those elsewhler~e pr~ovid~ed in
this Code to th~e extent, permitted by this Act:
(a) To adopt byv-laws and rules and regulations for its procedure
aind for the adlmillistr~ation and1~ enforcement of the Code. mn accordl-
ance with the powers herein ga nted, to submlit to the Admlinistrator
such information as to its activities as the Administratori ma~y dleem
necessary to effectuate th purpoe fteAt
(b) o obain rom embrs of the Industry for use of the Code
Authority, for the use of the Admninistrator mn the admninist-rationn
and enforcement of thle Code, and for the information of the 1Presi-
dent, reports based on periods of one, two, or four weeks, or one
monthlfl, or mullltip~lc thereof, as~ soon as the ncessary1S readjustmnent
within the Indu ~try3 canl be made and to give assistance to members
of thle Industry1'3 in improving methods, or in prescribing a uniform
systemll of accounting and reporting. All individual reports shall
be ke~pt confidential as to members o-f the Industry and only general
summaries thereof miay be published.
(c) To receive comp~laints of violations of this Code make investi-
galtionls thereof and brings to the attention of the Admll~lini trator, ree-
onunendtlltations and infolmration relative thereto for such action as
in his discretion the flc~t-; warrant.
(d) To-- -~- use su-------------~ 7 lc rh tradel Rasociations: and~ others algencies as it deems
proper for the carrying out of any of its activities provided for
herein and to payT such trade associations and agencies thze cost,
thereof, provided that nothing herein shall re~lieve the Code Au-
thority of its duties or responsibilities under this Code, and that
such trade ass~oc~iations and agem-les~t shall at all times be subject to
and comply with the provisions of this Code.
(e) To secure an equitable and proportionate payment of th~e
expetnses of mintalfining the Code AuthorityT andi its activities from
members of the Industry.
(f) To cooperate with th-e Ai~dministrator, in regulating thte use
of the N.R.A. Insignia solely by those employers who have assented
to, and are complyying with, this CIode.
(g) To develop fair trade practices and industrial planning, in-
cluding the regularizaztion of employment and stabilization of em-
ployees for the Industry, any such recommended practices or regu-
lations to be presented as Amendinents to the Code, shall be subject
to the approval of the Atdministrator.
(h) The Code Authority may coordinate the Administration of
thlis Code with such other Codes, if any, as may be related to the
Industry, or any subdivision thereof, andi may assist in promoting
joint action upon matters of common interest by establishinga a joint
Advisory Board to which one or more of its members shall be dele-
(i) To initiate, consider, and make recommendations for the modi-
fication or amendment of this Code.
(j) The Code ALuthority may appoint and remove and fix the
compensation. of such employees, accountants, attorneys, and officers
as it shall deem ncessa cy11 or proper for the purpose of administer-
ing the Code.
(kr) The Code Authority shall investigate the problem of design
piracy and as soon as practicable make recolnulrnelndaionls in con-
nection therewith to the ~Admlinistrator.
(1) TIhe Code Authority may grant a temporary extension, sub-
;ject to the approval of the Division Atdministrator and/or the Ad-
mninistrator, of the hours of work of factory employees upon a show-
ing by the member requesting such extension that the limitations of
his plant and equipment will not permit an expansion in the numllber
of factory employees, and that such restriction w~orkls an undue hard-
ship upon said member, but th~e gra:ntineg of such permission must
not allows such. member an unfair compllettifive alvantlgre nor work to
the detrimeint of other member13C1s.
(m) The Code Authority shall study the necesfiity fo~r overtimeo
workl andt shall rec~ommendl to the Ad~r/nunstratorl a definite. plan for
its limitation, within four (4) months of the effective date. Such
plan, upon approval by the Admninistrator after such hearing as he
may require, shall become op~erative as pnr~t of thiis Code.
ARTCL 711----ENERAL ADMIINISCTRAT'IVE: PROV.ISIOIN
1. In addition to information requirledl to be submitted to any Codle
Authority, there shall be furnishedl such statistical information as
the Admi?~nistratorr may deemn necessary for the purplowes :crecitedl in
Section 3 (a) of the National Industrial RecovTery Act to such ~Fedl-
eral and State~ ag~nc~ies as the Admrrinistra~to r may d~s-ignate,; nor
shall anything in this Code relieve any person of any existing obli-
gation to furnish reports to Gover~nment agencies.
2. An appeal from any action by thne Code A~uthority aff~ec~ting the
rights of any employer or employee in thne Indusltry may be taken
to the Ad~min ist ratoCr.
3. If the Administrator shall determine that any action of a Code
Authority or any agency thereof may. be unfair or unjust or co-n-
trary to the pubhec inter~est, the Admimistrator may require that such
action be sulspendedl to afford an opportunity for investitiiontin of
the merits: of such action and further consideration by such Code
Authority or agency pending final nation which shall not be efftee-
tive unless the Admnilnstrator approves or unless he shall fa~ilt to dis-
approve after thirty days' notice to him of intention to prc,~eedr with
such action in its original or modified form.
ARTICLE VII[I--TRADE PRACTICES
The follow~ino practices constitute unfair methods of competition
for mnember~s of the Industr~y and are prohibited:
1. False 111arrk~ing or BItrandting.--The false nlraking~ or brand~ing
of any product of thne Induxstry which has the temleltncyS to mlislead or
deceive culstomenrs or prospective custom-~ers, whether as to the grade,
quality, quantity, substance, chalracter, nature, origin, size, finish,
or preparation of any product of the Indlust~y~, or otherwise.
2. Commeralcial Br~ibery.-Nio member of the Indlustryr shall give,
permit to be given, or directly offer to give, anything of value for
t-he purpose of influencineg or rewarding the action of any emlployee,.
agent. or representative oof another in :relationl to the businecss of thle
em-'ploy\er of such employee, the principal of such agent, or the repre-
sentedl party, w-ithout thle kniowledge~ of such emplloyerr, p~rincipa~l, or
party. Comme~rcial bribery provisions ShallI not be construedd to pro-
h~ibit free andl general dlistribu~tionl of articles cnu!llcnonly use~d for
ad~ver~tising except so far as suc~h particles are netually13 used~ for ComII-
merialbrieryas her~einabove dlefinedl.
refunds, commiissions, creditt+, or ulneulr~ne discounlt, w~hether~ inl the
formll of money or otherwise, or the Iecret exten 100i to cvertain pur-
chaser~s of speccIall services or prIivileges nolt exstendedcc to all purllc~halsels
on like termis andi condiitionis.
4. Con~sign~men t.-o mlemlber of the Industry shall1 ship goods on
cons~ignmentll except under circuinslltancwe to be dlefinled b~y the Code
Authority, where peculiar c~ir~cumlstances of the Industry r~equire
the penet ice. This pro-vision does not apply to bona fide samples.
Any mnemlber of the Industry may take back yarn for exchange or
credit provided that there be a rephenr ientcllt order of equalll value
ncomll~pany ing the return of y~arn. to be shipped immediately.
5. Fal~7s~e Inzvo~ices.-T-o withhold from or insert in an invoice or
order statements or entries which make such documents a false
record, wholly or in part, of the transatio~i n recpresenlted~ on the face
6. Tennai.--Thne terms of sale shall not be in excess of a cashl dis-
count of 2/10 with the option. of sixty extra or 3/10 E.O.M. Shlip-
mnents madelr~ on the 25th of the month and after shall be allowed as
of the first of the month. No further dating.
7. Sales Beloso lost.-T'lo sell or offer to sell any product below
its cost except to meet the competition of ai member of thle Industr~y
whose cost is lower. Cost is defined as the sum of direct material
anzd direct labor plus overhead. The term overhead shall be
defined by the Code ~Authority with the approval of the Admlinis-
trator. The sale of finished samples below cost is not prohibited
by the provisions of this section.
8. Sale of Ec~condsP.-Thne sale or offer for sale, at a. reducl~ced price,
of rejects, factory seconds, or discontinued lines byr any memberc~l of
the InduslrtryS in excess of tenl per cent (10%o) of his total production.
Anly such sale shall be reported to the Code Authority. Sales in
excess of ten per cent (10%j) may be permitted by the Code Author-
ity, upon a finding that such restriction works an undue hardship
upon a memblll.er of the Industry, but the granting of such permission
must not allow such member an. unfair competitive advantage nor
worki to the detriment of other mIemnbers. The provisions of this
Section shall be subject to the right of review by thne A~dministrator.
1. Thiis Code and all thle provisions thereof are expressly made
subject to the right of the President, in accordance with thle provi-
sions of Subsection (b) of Section 10 of the National Industrial
Recovery Atct, from time to time to cancel or modify any order,
approval, license, rule, or regulation issuled under Title I of said Act
and specifically, but without limitation, to th~e right of the Presidenlt
to cancel or modify his approval of this Clode or any conditions
imposed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to be based upon applie~ntio~n to the Adminmistrator and
such notice and hearing as he shall specify, and to become effective
on apprvllcl of the Pre~tsidecnt.
ARTIC~ LE -MnCOFOOLIESS
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic p ra ct ice~, or to el im ina te, opp ress, or discriminate
against small enterprises.
Whereas, the policy of the -Act to inlcrn 0 real pu~~~rchaing~ power
will be made impossible of con-unanatl~lion if" prices of goodstl and
serv\ices increase as rapidly as \\vage it is :Ic.coguizedc tha~t pr~ilce
inIcR-ease shouldl be delayed and thiat, w~hen miadle the n;Ine( shoul,~ll
so far as reasonabllly poss.ible, be limited to actulal increases in thle
ARTICLE XII--E rrr'EnvI\ E DATE
This Code shall become effective on thle tenth dlay after its approval
by the! President.
APplroved~ Code Nuo. 335.
Registry No. 231--08.
UNIVERSITY OF FLORIDA
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