Code of fair competition for the upholstery and drapery textile industry

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Title:
Code of fair competition for the upholstery and drapery textile industry as approved on November 27, 1933 by President Roosevelt
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p. 259-271 : ; 23 cm.
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United States -- National Recovery Administration
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Textile industry -- Law and legislation -- United States   ( lcsh )
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non-fiction   ( marcgt )

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Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code no. 125".
General Note:
"Registry no. 280-1-01".

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University of Florida
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Full Text
UNIVERSITY OF FLORIDA


3 1262 08486 7976
Registry No. 280--1-0 1


NATIONAL RECOVERY ADMINISTRATION



C ODE OF FAIR C O MPE TITI ON
FOR THE

UPHOLSTERY AND DRAPERY

TEXTILE INDUSTRY

AS APPROVED ON NOVEMBER 27, 1933
BY
PRESIDENT ROOSEVELT











OUR PART






1. Exaecutive Order
2. Letter of Transmittal
8. Code






UNITED STATES
GOVERNMENT PRINTING OFFICE
WASEHINGTON : 1933


F I
Par sale by the Superintendent of Documents, Washington, D.C. - Price 5I centa
























This publication is for sale by the Baperintendent of Doenments, Government
Printing Office, Washington, D.O1., and by district ofic~es of the Bureau of Foreign
and Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Offce Building.
Birmuingham, Ala.: 257 Federal Building.
Boston, Mlass.: 1801 Customhouse.
Buffalo, N.YI.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, O~hio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
D~etroit, M~ich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamuber of Commerce Building.
Jacksonville~, Fla.: Chamber of Commerce Building.
Kansans City. M~o.: 102"8 Baltimore Avenue.
Los Ang~eles, Calif.: 1163 South Broadway.
Louisville, KyI.: 408 Federal Building.
Metmp~his. Tenn.: 229 Federal Building.
111inneapolis, Mlinn.; 213 Federal Building.
Newo Orlea~ns, La.: Room 225-A, Custombouse.
New York, N.Y.: 7;34 Custombouse.
Norfolk, Va.: 406 East Plumie Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
P~ittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 N'ew Post Office Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Settle, Waush.: 809 Federal Building.













Approved Code No. 125


CODE OF FAIR COMPETITION
FOR THE

UPHOLSTERY AND DRAPERY TEXTILE
INDUSTRY

As Approved on November 27, 1933
BT
PRESIDENT ROOSEVELT





Executive Order

An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the! National Industrial
Recovery Act, approved June 16, 1933,, for my1 approval of a Code
of Fair Competition for the Upholstery and DiraperyJ Textile Indus-
try and hearings having been held thereon and the Admiinistrator
having rendered his report containing an analysis of the said code
of fair competition together with his recommendations and findings
with respect thereto, and the AQdministrator having foundl thaIt the
said code of fair competition complies in all respects with the: perti-
nent provisions of title I of said act and that t~he requirements of
clauses (1) and (2) of subsection (a) of section 3 of the: said act
have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to the authority vested in mie by title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve t~he report, recommendatinsns
and findings of t~he Administrator and do order that the said code
of fair competition be and it is hereby approved, subject to the
following conditions:
(1) Any manufacturer producing upholstery and drapery fabl~ris,
and known to the: trade as a cotton manu facturer, a wool-goods
manufacturer, a silk manufacturer, or a rayon manufacturer, who has
been operating as of August 15th, under a code of fair competition
for such industry, may elect not to be bound by anly of the pro-
visions of this code, with the exception of article IX, provided,
that notice of such decision by such manufacturer shall be filed in
S3774Q"--2449--93--83 (259)







260


writing wTithl the National Upholstery and Drapery Textile Asso-
ciation, Incorporated, at. its offices, 185 Madison Avenue, New York,
N.Y~., and also filed in writing with the Cotton Textile Institute,
33(0 Broadway, Newr Y'ork, N.Yt., or the National Association of WTool
Manufacturers, 229 Fourth Avenue, New York, N.Y'., or the Silk
Ass.iociat~ion of Amnerica, 468 Fourth Avenue, New Y'ork, N.Y.,~ or
the National Rayon WVeavers Association, 4l0 Worth Street, New
York, N.Y., not, later than 6:00 p.m., Eastern standard time, on the
second Miondany following the approval of this paragraph.
(2) The provisions of article III, section 4, of this code are
hereby stayed for a period of fourteen (14) days from the effective
date of this code insofar as said provisions are applicable to those
looms on which ar~e manufactured pile fabrics usedl exclusively for
automobile up~holstery.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HUG;H S. JoHNson.
Ald m~inistrator.
THE WHITEE HOUSE,
Nlo vemnber' k27,1933.













NOVEMBER 1?, 1933.
The PRESIDENT,
Th~e WTh ite Hou~se.
Smr: The Public Hearing on the Code of Fair Competition for the
Upholstery andl Drapery Textile Industry, as proposed by the Na-
tional Uph~olstery and Drapery Textile Association, was conducted
in W9ashington on August 301, 1933. Every person whlo requested an
appearance was freely heard in necordlance with statutory and regu-
latory requirements. The code has the approval of the great ma-
jority of manufacturers who work exclusively on upholstery and
drapery fabrics or for wchom these lines constitute a substantial part
of their business.
DESCRIPTION OF THE INDUSTRY

Unique difficullties arose w~hen considering this code because of spe-
cial conditions inherent in this branch of the textile industry.
The production of upholstery and drapery fabrics is a business
which, on equipment of great versatility, uses all types of fibers in
producing fabrics to develop and meet style changes. Since its
founding, it has been a separate and distinct branch of the textile
industrLy, generally unaffliated with t.he production of other textiles.
This separation was the natural result of the variety of raw materials
used and the special skill and art required in the manufactured of
these fabrics. Sales also are made through specialized' channels.
Upholstery fabrics generally are sol'd direct t~o manufacturers of
furniture, automobiles, railroad cars, etc. Drapery fabrics are sold
direct by t~he mill to large retail outlets while smaller retail outlets
are reached through wholesalers.
The industry realizes that it. is only a small branch of the whole
textile industry but beenuse of the variety of fiberss used, its special-
ized tyvpe of products, and its separate distribution problems, it does
not fit into anly of the major classifications of textiles.
The fibers employed in the manufacture of upholstery and drapery
fabrics include every known natural andl synthetic fiber used in the
production of textiles. Fromt year to year style and price tequire-
mnents cause substantial changes to be miade in t~he raw materials
used. In one season a large amount of rayon might be used whichl
in another year might be supplanted largely by silk, worsted, or
mohair. At any one time a mill might. be making severall fabrics
of which one might be principally of rayon, another principally of
cotton, and still another principally of wool or mnohair. liore fre-
quently than not, a single fabric will be composed of two or mnor~e
fibers and it is not unusual for four or more fibers to be employred
in the making of a single piece of goods. This industry, for example,
is one of the few to employ the little known fiber, ramie, to any
extent.
(261)






262


Thus, great confusion would be created if the industry should be
required to operate concurrently or intermittently under each of the
several textile codes, depending upon the predominant fiber in each
part~icular fabric produced. Furthermore, effective cooperation
wouldl virtually be impossible.
WVithin recent years, miills commonly classified as cotton mills have
gone into the weaving of upholstery and drapery fabrics in order
to provide an additional outlet for their yarns or to utilize idle
loom equipment. A number of cotton mills have limited their par-
ticlipation in this business to those periodls in which there had been
but light demand for their other products.
UTpholstery and draperyr fabrics are divided into twfo broad types,
pile fabrics anid flat fabrics. Flat fabrics used in this field are con-
structed on the same general principles as other textile materials.
However, thie upholstery and drapery materials necessarily have a
much heavier body and more extensive and intricate dlesigns and
colorings than almost any other group of textiles. A considerable
portion of both pile and~ flat fabr~ics are~ w~oven with jacquard ma-
chines and. the loomis in both divisions of the indlustr~y are almost
ent.ir~ely of a wilthl greater than 50 inches.
To manufacture pile fabrics, specialized types of looms are needed
w~hichl can weave only pile fabr~ics. Loomrs for t.he production of flat
fabrics in an upholstery anld drapery mnill are also specialized as they
are suitable only for the production of these more comlplex fabrics,
andc are built for quality production, rather than quantity prod-uction.
As a practical matter, therefore, non-automnat~ic shaft and jacquard
looms ma1~inly are found in miills of this kind. One weaver to a loom
is cusitomlary in this industry and2 two or three looms to t~he weaver
is the practical limit, due to the close attention required for the pro-
duction of a comnplex fabric. Weavers of upholstery and drapery
fabrics are highly skilled operators and- a typical worker must have
had andl actua~lly does have years of experience.
Thle industry is distinctive also, particularly in these days of mass
production and standardization, in that its products are highly spe-
c~ializedl and any one fa~bric, weave or design is often produced in
relatively small quantities. An undetermined but important part of
total production is of special designs, or~iginated~ for a predetermined
market andl adapted to a definite use. The style life: and demand for
such a, material is very short and the manufacturing problems are
further complicated by style piracy, one of the greatest single prob-
lemss of the industry andi one which was stressed by the proponents
of the code as a vital reason for a code of their own.
Both drapery and upholstery materials must be styled to accord
with the constantly changing trends in furniture design and interior
decoration. Designs alone frequently cost as high as $500.00 to
$800.00 plus the cost. of experimental runls in which the construction
and composition of the fabric, it.s design a~nd color treatment, are
altered before the details of the final fabric are decided upon. Once
a fabric has been made, it is a simple matter for any other manufac-
turer to put. the same or a similar fabric into production at prac-
tically no exp~ense. Pirated designls in almost every case are repro-
duced in cheaper fabrics andl sold at a price materially lower than






263


the original. Design piracy is an evil which this code a.nd adminis-
trative machinery attempt to remov~e.
Because of all these factors it is believed that thle interests of all
mills in the textile industry will be most. adequately served by the
Executive Order allowing miills to make a choice as to the particular
code under which they will operate. 1\lills commonly classified as
cotton mills or woolen mills, and nowT operating under such a ceode,
may elect. to continue operation under the basic provisions of that
particular code even thoughrl they. produce a certain amlount of fabrics
that meet the definition in thiis codle. It is essential, however, tha~t
mills electing to operate under another code, be bound, in their sell-
ing of upholstery? and drapery\ fabr~ies, by the fair trade practices of
this code, namely, Article IX. TIhis was objectedl to strenuously by
the Cotton Textile Institulte. It. was deemed~ necessary, for the pres-
ent, to overrule this ob~jection. Inl this manner, the confusion of
operating one plant under several codles will be miinimized, and yet
those who aIre pr~imarily producers of these mor~e intricate fcbrics
will still have a code suited to their particular problems.
LA-BOR PROU7SION.S OF THE CODE

It is impossible to arrive at any estimates of reemlployment that
would be secured by the, operation of this code. Practically every
mill in this industry is now operating under either the cotton or the
wool code and consequently their operations are on the basis of forty
(40) hours for employees andi eigihty (80) hours for looms. Previ-
ously, the full work week was forty-eighlt (428) hours in the majority
of the northern plants, but. seasonal influlences generally cut the work
week to a somewhat smaller figures. Withl only\ som1e 10,000 employees
in the whole industry. t~he figures for possible r~eemnploymlent, even
fr~om the low point, would not be velry impressiver. Also, it is
probable that estimates of rpeemployment in the textile field, as a
whole, have already taken into account. the up~holster~y and drapery
ind~ustry\.
The minimum wage rates for the usual upholstery and drapery
mill are not. a matter of great concern to either management or labor
because 80! percent. t~o 90 percent of the operat~ors are highly skilled
a.nd already receive consideranbly more than the proposed scale.
Because comnpetinlg mills will be bound by certain provisions of
this code, it is necessary that wage and: hour provisions in the
Upholstery aind Drapery$ Textile Industry conform with such pro-
visions in the basic textile industries, until such time as they may
be adjusted.
LOOMI-HOUR LIMITATION

The code provides for a limitation of hours of machine operation
as a measure designed to stabilize employment and production. In
a.rriving at a basris for loomn-hour limitation t~he sponsors of the code
first gave consideration to the number of looms available for eco-
nomical and effective use. Thle averagae dlemandi for upholstery and
drapery fabrics dur~ingr the last few years has been considerably less
than the capacity of the industry.






264


The loom-hour limitation clause is as follows: "L No loom shall be
operated for more than two shifts of forty (40) hours each per
week."
Strong objections to this provision were raised by a. small group of
maRnufacturers w~ho produce approximately 90 percent of the pile
fabrics ulsedl for upnholsteringr automobiles. They contended that
there is no overprodluction nor has there been any overproduction of
this class of pile fabrics. In particular, this group stressed that the
application of this provision would result in a curtailment of the
supply of automobile upholstery fabrics which would be reflected
in the production of automobiles and cause a lay-off of employees in
that industry. Certain automobile body manufacturers bore out this
statement.
The rest of the manufacturers in the industry, while admitting that
theyr themselves produced but a negligible amount of automobile pile
fabries, advancedl the thought that allowing unlimited operation on
automobile pile fabrics looms would cause unfair competition for two
reasons. First, there would result a natural reduction in overheadl
costs to a fe~w i tihe inidustry by reason of longer operation of ma-
chinery whic~hh would be reflected in the production costs of fabrics
mande by thieie manufacturers for trades other thian the automlobile
industry. Secondly, the available looms which were potential pro-
ducers of these special fabrics were far in excess of t~he number
needed to supply the annual requirements of the automobile industry.
Logical and forceful cases were made by both sides in the contro-
versy anld there was considerable merit in all the arguments advanced.
The industry was unable to reach a compromise and decided to leave
the final decision to the: Administration. After weighlingr all the evi-
dence and gaiving careful consideration to the pro'bable effects on this
industry, related industries, andi the consumers of these fabrics, it was
felt that all loomls should be restricted to two shifts of forty (40)
hours per week.
To give the industry opp~ortunity to adjust its operations to this
schedule, a st~a~y for 14 daygs of the machine y-h~ur limitation is
granted by Executive Order to those looms used for the excluisive
production of automobile pile fa~bries.
ADMIINISTRASTION

The provisions for administration of this code are capable of
providing the N.R.A. and the Upholstery and Drapery Textile In-
dustr~y with sufficient data to make recommendations for the limi-
tation of certain p~rovisions of' the code as herewith presented and/or
the addition of further provisions of this code which would be
beneficial to the indcustryS as a whole.
CONCLUSION

I] findf that the codle comlplies in all r~esp~ects with t~he pertinent
provisions of Title I of the National Industrial Recovery Act,
including, writhouut limitation, subsection (a) of Siection 7 and sub-
section (b) of Section 10) thiereof.






265

The National Upholstery anid Drap~ery Texstile Ass-ociation is trully
representative of the Upholstery! andl Drlpery~ Textile Indlustr~y and
the by-laws of this Association provide no inequitable rest~ic~tions to
membership.
The code is not designed to promote monopolies or to eliminunte
or oppress small enter~prises and will nIot operate to discr~iminate
against themn, and wFill tend~ to effectuate the policy of TIitle I of
the National Indlustrial Recov~ery Act.
Accordingily, I hereby recommendl the a~pprovanl of the Code of
Fair Co~mpetition for the Upholstery and Drapery Textile Industry.
Respectfully,
HJUanI S. JoHNSON,
Adr!mini 'stratfo-r.










CODE OF FAIR COMPETITION
FOR THE

UPHOLSTERY AND DRAPERY TEXTILE INDUSTRY


ARTICLE I: -PURrPOSES

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a. Code
of Fair Competition for the Upholstery and Drapery Textile In-
dustry, and shall be the standard of fair competition for this
industry.
ARTICLE II--DEFINITIONS

SECTION 1. The ter~m industry ", as used herein, shall include,
without limitation as to materials used, the manufacture of up-
holstery and drapery woven pile fabrics and upholstery and drapery
fabric without pile made on 4 x 4 Box Broad Looms, with a design
requiring a jacquardl machine having 600 hooks or more, requiring
two shuttles or more.
SEC. 2. The termz employee ", as used herein, includes any person
engaged in any phase of the industry in any capacity in the nature
of employee irrespective of the methodi of payment of his
compensation.
SEC. 3. The term employer "? as used herein, includes any one
for w~homl such an employee is so engaged.
SEC. 4. The term "' member of the industry ", as used herein, in-
cludes any emnployer and,'or enterprise in this industry.
SEC. 5. The term member of the code ", as usedi herein, means
anyl member of the industry who shall agree in writing as prescribed
in Section 7, of Article VI'.
SEC. 6. The term President ", as used herein, means the President
of the UTnited States of Amnerica.
-SEC. 7i. The term "~Administrator ", as used herein, means the Ad-
miinistrator appointed by the President under the National Indus-
trial Recovery Act.
SEC. 8. Tl18 ternl LCOde Authority ", as used herein, means the
National Admninistrative Agency of the Upholstery and Drapery
Textile Industryv as established in Section 1 of Article VTI.
SEC. 9. The term "L association "!, as used herein, means the National
Upholstery andl Drapery Textile Association or its successor.
SEC. 10. The term learner ", as used herein, shall include any
employee who has worked in the industry less than six weeks.
ARTICLE rII-HOURS

SECTION i. NO engineer, electrician, or employee working on a
repair shop crew or watching crew, shall be permitted to work more
than 40 hours per week, with a tolerance of ten percent; provided,
(206)






267


however, that in the case of emergency maintenance or emergency
repair work, involving breakdowns or protection of life or property,
the above maximum hours shall not apply; and provided further
that all hours worked in excess of forty (401) hours per week shall be
comlpensated for at thle rate of time and one third. Emergency
hours worked shall be reportedly monthly to the Code Authority pro-
vided for in Section 1 of Article VI.
SEC. e. NO O~jce emnployee shall be permitted to workr in excess of
forty (40) hours per w~eek averaged over a twelve weeks' period, but
in no event in excess of for~ty-eight (48t) hours in an~y one week.
SEC. 3. NO other employee, except outside sales persons, and those
employed in a masnagerial capacity and earning in excess of $35.00
per wreek, cleaners, frmen, and those employed on shipping and
outside crews, shall be permnittedl to workr in excess of forty (40)
hours per week; pr~ovided, hiowever, that t~he Code ASutlhority herein-
after provided for in Sect~ion 1, of Article VIT~, shall recommend to
the Admlinisitrator on or before Januar~y 1st, 19'34, the mraximnum
hours which cleaners, firemen, and those emuployed' on. shipping and
outside crews shall be permitted to work.
SEC7. 4. NO Ilomr shall be op~erated for moreit than two shif~ts ofk
forty~ (40) hours each per week.
SEC'. 5. Until adoption of further provisions of this Code that many
prove necessary to prevent azny improper speeding up of w~olrk
(stretchouts), no employee shall be required to operate or attend
more machines or per~form duties in addit.ion to those prevatlingv on
July 1, 1933, unless such increase is approved by the Code3 Author~ity,
subject to review by the Adcministrantor.
ARTICLE IVT--YAGES

SECTION i. NO employees, except learners, cleaners, and those ema-
played on outside crews, shall be paid at less than the rante of 32%2
cents per hourr, provided, that in the southern section, nio employee
except learners, cleaners, and those employed on outside crews, shall.
be paid at less than the rate? of 30 cents per hour.
The southern section as used herein shall include the states of
Vir~ginia, North Carolina, South Car~olina, Georgia, ~Filorida, Ala-
bamna, M\issiissippi, Tennessee, K~entuckyT, and WCest Virgainia.
SEC. 2. NO learner, cleaner, or employee engaged on an outside crew
shall be paid at less than 80%b of t~he muinimumr wage rates hereizi-
above set forth in Section 1; provided, that learners, cleaners, and
those employed on outside crews shall not exceed 010%o of the total
employees of each plant.
SEC. ;3. NO emnployee, whether paid on a time rate, piece work, or
commission basis, shall be paid less than the minlimum rate per hour
of employment prescribed in this Code.
SEc. 4. There shall be uniform w~age rates for all shifts.
SEc. 5. To the extent practicable (a) rates of pay in excess of the
minilunum herein prescribed shall be increasedl so as to pr~eserve equi-
table differentials and (b) earnings shall not be r~educedl by reason of
a reduction in hours.






268


SEC. 6. In determining the classification of employees under this
Code, each employee shall be entitled to claim the benefits of the
classification of occupation in the industry existing on June 16th,
1933.
ARTICLE V CHILD LABOR

SECTION 1. No person under 16 years of age shall be employed in
the industry. In any State an employer shall be deemed to have
complied with this provision if he shall have on file a certificate or
p~ermnit duly issued by the Authority in such State empowered to
issue employment or age cert~ifientes or nprmits,~ showingr that the
employee is of the required age.
ARTICLE TI--ADMINISTRATIONN

SECTION 1~. To further effectuate the policies of the National In-
dustrial Recovery Act, a Code Authority is hereby set up to cooper-
ate with the Administrator in the administration of this Code.
Such Code Autdhority shall consist of not less than 8 nor more than
1 members, 8 of whom shall be representatives of the Industry
elected by a fair method of selection to be approved by the Adminis-
trator, and 8 of whom without vote may be appointed by the Admin-
istrator. Such agency mlay present to the A~dministrator recommen-
dations based on conditions in the industry as they may develop
whichl will tend to effectuate the operation of the provisions of this
Code and the policies of the National Industrial Recovery Act.
Su~ch recommendations, when approved by t~he Administrator, shall
have the samle force and effect, as any other provisions of this Code.
Sm.~c 2. Such Code Authorit~y shall cooperate wit~h the Administra-
tor ini making investigations as to t~he functioning anld observance of
anyr provisions of this Code, at its own instance or on complaint by
any person, affected, and shall report the same to the Adlministrator.
SEC. 3. The Code Authority shall provide for the formation of a
committee for the administration of' the provisions of Article IX of
this Code. Such committee shall included representatives of all trade
groups subject to the provisions of said Article. The Administrator
at any time may require such committee to give representation to
anly such trade g3rou1p in such manner as may be deemed equitable.
SEC. 4. Each employer shall furnish reports as hereinafter pro-
vided. The Association is hereby constituted the agency to provide
for th~e collection and receipt of such reports and for the forwarding
of the substance of such reports to the Administrator, the Associa-
tio toproid fo reeivngand holdings such reports themselves
tin coponfiene. Suh reports shall be in such form, and shall be fur-
nished at such intervals as shall be prescribed by the Association,
subject to the approval of the Administrator, and shall contain such
information relevant to the purposes of this Code, as shall be pre-
scribed byr the Alssociation, subject to the approval of the Adminis-
trator, including information with respect to the following or related
subjects :
(a) Employment, hours, wages, and wage rates.







269


(b) Production, orders, filling, and stocks (in process and finished)
of products manufactured.
(c) Cost data.
(d) Activity, pur~cha~ses sales, andi scrapping of machinery.
(e) Consupion~to andi stocks of raw materials.
SEC. 5. rSta~tistics disseminated to the industry\ by thle Code -Au-
thorlity shall be in t~he form of compila~tions an'd shall not disclose
statistics of individual plants.
SEc. 6. There shall be no inequitable restrictions imposed on memi-
bership in the Association.
SEO.n 7. Members of t.her inlndutry who are complyi;ng w\ith~ the re-
quirements of the code; and who agree in writing either individually
or through trade associations of which they are members to abide
by the requirements of this code, and to paytereaoblshr
of the expense of administration thereof, shall beesntitled tohae
benefits of t~he activities of the Code Authority and to m~ake use of
N.R.AI. Code inisigrnia.
SEO. 8. The reasonable share of t~he expense of administration of
the Codle to be borne by the members of t.he code,- shall be determined
by the Code Authority, subject to review by the Administrator, on
the basis of volumle of business, and such other factors as may be
deemed equitable to be taken into consideration.
SEC. 9. In addition to the information required to be submitted
to the Code Authority, there shall be furnished to Grovernmnent agen-
cies such statistical information as the Admiinistrator mary deem
necessary for the purposes recited in Section 3 (a) of the ~Nationali
Industrial Recovery Act.
ARTICLE VII--UmrFoBB Cost ACCOUNTING

Each member of the C'ode shall adopt uniform items in com-
piling the respective cost of' production; and the Code Authority,
subject to the approval of the Adminristrator, may determine the
items which shall be included by each m~ember of the code in. deter-
mlinin~g his cost, of production.

ARTICLE VIII--UNIFORMZ SALS CONTRACTS AND ORDR BLANKSL

The Code Aut.hority, subject to the approval of the .Administra-
tor, shall prepare a uniform sales contract for all products of the
industry except fabrics sold to automobile manufacturers, which
shall be in accordance with law and with the provisions of this Code,
eand which shall thereupon be used, in subtstance, byT all members
of the industry. This sales contract shall, in addition to other
provisions, contain:
(a) A provisions that the price therein is F.O.IB. Mill. It shall
also contain, in substance?, such terms of this Code as are material
to any transaction between buyer and seller.
(b) A provision that in the event that that style, color, or other
specifications necessaryg to filling the order are not specified therein,
and the buyer shall decline to furnish suchi specifications at least
ten day~s before the respect~ive shipping dates, the seller may, at his
option, comuplet.e the contract upojn reasonable sp~ecifications.







270


(c) In addition to the foregoing, members of the Code shaUl in-
clude in such sales contract an agreement to arbitrate disputes aris-
mec therefrom in accordance with the then rules of the American
Arloitration Association.

ARTICLES IX--UNrarn TRADE PRACTICES

The following unfair trade practices are prohibited:
SECTION 3.. Ta8?78 an7d Disc~ounts.--Giving terms of discounts on
sales, which shall be in excess of net seventyv days or 20% discount
for cash within ten days from actual date of shipment, plus 6%b
per annum for actual anticipation; provided, however, that in the
case of fabrics sold to automobile manufacturers, such sale may bte
made on a net basis, not to exceed an average of 30 days.
SEC. r2. GTcl~litiesd.-Paying gratuities by any member of the in-
dustry to purchasers or prospective purchasers, whether in the form
of money or merchandise, directly or indirectly.
SEc. 3. >Selling onL Consignbment.--Sell ing mercha ndise on memo-
randum or consignment.
SEC. 4. RetuPAB.--Accepting for return, merchandise sold and de-
livered in due accordance and compliance with an order or contract,
or selling any merchandise on approval or with privilege of return,
or accepting or permitting the cancellation or modification as to price
and terms of any order or contract for merchandise not yet delivered.
SEC. 5. 1Samlples.-Giivin samples of fabrics free of cost except
color swatches of patterns actually purchased, which shall be no
larger than 6" x 9"; p rr;ovied however, that no more than six of any
color of any pattern shall be given to any customer in one season;
and provided, further, that larger bona fide samples may be sent
on memorandum to be returned within 30 days and if not so re-
turned, to be billed at the regular price. No allowance or discount
other than cash discount for merchandise sold is allowed for samples
to be used in sample books.
SEC. 6. SCtyle piracy.--The Code Authority, subject to the approval
of the Administrator may provide for the definition and peeto
of style piracy. It miay provide for the establishment of eta
bureau, to be made up of a committee, to be selected by the Code
Authority, subject to the approval of the Administrator, empowered
to receive and file novelty design and style registrations, to deter-
mine questions of style novelty and piracy, and to make reports
thereon to the Code Authority.
SEC. 7. 190/68 below~ cost.--No member of the Industryahall sell or
offer for sale any merchandise at a price less than the manufacturer's
cost of production to be determined by the method provided in
Article V'II of this Code. The Code Authority, subject to the ap-
proval of the Administrator shall determine the dates upon which
the usual season for sale of merchandise ordinarily commences and
terminates, and shall provide a period during which members of
the Industry shall be exempt from the provisions of this section.
This date of sales shall be fixed so as to have as little effect as possible
on the ordinary sales market during any ordinary selling season.






271


ARTICLE X-GENERAL, PRov'ISIONs
SECTION 1. No provisions of this Code shall be permitted to op-
erate in such manner as to promote or permit, monopolies or monopo-
listic practices or to eliminate or oppress small enterprises or to
discriminate against them.
SEc. 2. Employees shall have the right to organize anld bargain
collectively, through r~eprlesenta t~ives of t~hei r own. choosing, and shall
be free from interference, restraint, or coer~cion, b~y employers of
labor, or their agents, in 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.
SEC. 3. NO employee and no one seeking employment shall be re-
quiredl as a condition of employment to join any company union, or
to refrain from~ ;oning, orga~nizing, or assisting a labor orgrnmzation
of his own choosing.
SEC. 4l. Employers shall comply with the mazimnum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SEC'. 5. This C~ode and all th~e provisions thereof a~re expressly made
subject to the right of the Pre~sident, in accordanlce with the pro-
visions of Sub-section (b) of Sect~ion 10 of the National Industrial
Recovery~ Act. froml time to time to cancel or mjlodify any order~1, ap-
proval, license, rule or regulation issued under Title I of said Act,
and specifically, but without limitation, to the right of the Presid~ent
to cancel or shodify his ay:pprovall of this Code or any conditions
imposed by him upon his approval thereof.
SEc. 6. The Code Authority shall study th~e provisions of this
Code and the operation thereof, and shaRll make to the administrator
such recommendation s as it mayS deeml desirable for modt'ifientionr or
additions thereto, whichh recom mend~t~ions, or mod ifica tionls thereof,
uponn hisn app~1rovarl and after uclrh henr~ingas as he shall prescribe,
shall become a2 part of this Codle and have -full force and effect as
provisions thereof.
SEc. '7. Within each state, members of the industry shall c~omplly
with any las~r of such state imposing mlore stringent r~equir~emntlls
regulating licensing, the age, wages, or hours of work of employees,
than under this Code..
SEc. 8. It is contemplated that the cost of executing contracts both~
of purchase and sale in the industry entered into prior to the enact-
ment of the National Industrial Recovery Act, or of the adoption of
this Code, mnay be: increased byr the application of the provisions of
the National Industrial Recoveryr Act that approprriate adjustmentss
of such contracts to reflect such incr~easedl costs be arrived at by
arbitral nrpcroceings or otherwise, and the Code Authority is hlereby
constituted an agency to assist in effecting such adjustmenlts.
SEC.*9. Each employer shall post in conspicuous places full copies
of this Code.
ARTICLE SI
The effective dlate shanll be the second hlonda~y after this Code shall
have been approved by the pPrsident of the Uniited States.
Approved Code Ncro. 125.
Registry No. 280--1-0L.






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