NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
SILK, RAYON, AND
SYNTHETIC FABRICS SALES AND
AS SUBMIITTED ON AUGUST 31, 1933
The Code for the
Silk, Rayon, and Synthetic Fabrics Sales and Distributing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry!
GOVERNMlENT PRINTING OFFICE
'or sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Registry No. 266--3--01
UNIVERSITY OF FLORIDA
3 1262 08483 0164
\ WE BOOUR PART
SILK AND RAYONU FABRIC SALESMEN'S ASSqplATION, INC.
PROPOSED CODE OF FAIR COMPETITION FOR THE SILK,
RAYON, AND SYNTHETIC FABRICS SALES AND DISTRIB-
ARTICLE I PURIPOSES
The purposes of this Code are:
1. To effectuatee the policy declared in Title 1 of the National
Industrial Recovery Act.
2. To promote the welfare of the salesmen employed in the distri-
bution of silk, rayon, and synthetic fabrics.
3. To elevate the standards of honor, integrity, courtesy, and to
strengthen the goodl will between salesmeni and their employers.
4. To secure to each salesman a fair opportunity to earn a decent
ARTICLE II -AETEBERSHIP AN~rD RTONOPOLIES
The association shall impose no inequitable r~estrictions on admis-
sion to membershiip therein, and shall truly represent the industry.
This code is not, designed to promote and will not permit monopo-
lies or monopolistic practices.
The National Industrial Recovery Act shall hereafter be referred
to as The Act.
The term salesman shall mlean a person emlployedi in the sell-
ing of silkz, rayon, and synthetic fabr~ics.
"L Employer ") and "i person are to include natural persons, part-
nerships, associations, corporations, or selling agents engaged in
the wholesale distribution of silk, rayon, and synthetic fabrics.
Accourits shall be interpreted to include all na~turanl persons,
partnerships, associations, and corporations to whom an employer
has sold merchandise through a salesman, whether the said account
be acquired by said salesman or given to him by his employer.
By the term Salesman's interest in a salesman's account is
meant the exclusive right to receive commission on all transactions
of employer with said account for a period of six months from
"' Initial sale shall be defined as a salesman's first accepted order
followed b~y delivery and acceptance of goods by t~he customer.
Aaa~rcra IV-MRII~arnux ComBISsION ~TVAGE
No salesman shall be employed unless the minimum wage against
commission be $35.00 per week. In the event that the earned comn-
mission does not exceed the minimum~ drawing account or the agreed
drawing account, then such drawing account shall be considered
ARTICLE V--AllNIMUM COMMISSION
Salesmen shall receive on all net sales a minimum commission o~f
2% on dyed and finished products a.nd 1%/ on grege goods.
A sale is deemed to have been made and the services of a salesman
to have been fully performed, and his conun~issions are deemed to
have been earned whenl the goods sold are delivered and accepted
by the customer. Incapacity of the customer to pay for goods sold
and delivered shall in no case deprive the salesman of his earned
ARTICLE VI --METHOD Or ACCOUNTING
A statement showing the amount of business transacted b~y a sales-
man and the accounts with whom such business was done shall be
issued by the employer to the salesman on the 10th day of each
Duplicate copies of sales and credits are to be furnished to each
ARTICLE V~I-A RBITRBTION
The salesmen, desiring to cooperate with recovery because of the
emergency declared to exist by the Congress of the United States,
and in order that a salesman may be insured a regular and periodic
income despite unfair practices resulting in Court litigation with
its unavoidable delays and costliness, thereby engendering ill-feeling
between employer and salesman, do therefore establish that com-
pulsory arbitration for the settlement of all discords be the practice
during the period of the emergency.
Any and all complaints, differences, controversies, or questions
arising under or out of this code or concerning the interpretation or
application of any provision thereof shall be submitted to arbitration
in accordance with the following provisions:
1. A salesman's complaint in writing is to be filed with the Asso-
2. The association shall within ten days thereafter file copies of
said complaint with the employer and the Silk Association of Amer-
ica together with a list of two arbitrators chosen by the association.
3. The Silk Association of America shall within ten days after
service of complaint file with the association the employer's answer,
together with Its list of two arbitrators. Issue shall be joined on
receipt of answer by the association.
4. Within ten dags after joinder of issues the chosen arbitrators
shall select an umpire.
5. Arbitrators so selected shall constitute the Board of Arbitra-
6. Within ten days after selection of the Board of Arbitration,
hearings on issues shall commence.
7. Such Board of Arbitration shall render a decision within ten
days after case has been finally submitted.
8. An employer may file his complaint with the Silk Association
of America and the above methods of arbitration in reverse shall
9. Except as hereinabove provided thle rules of the American
Arbitration Society shall govern.
ARTICLE VIII-SALESMrAN S INTE~REST IN HIlS AccouNTs
The employer and salesman ennunciate the policy that an account
acquired by or given to a salesman shall create a salesman's interest
in the salesman with respect to said account for a period of six
months. Such interes-t shall entitle a salesman to commissions on
all sales between said account and employer, whether it be con-
tracted by said salesman, employer, or any other person. This in-
terest shall cease at the endt of said six-month period, or upon the
termination of the relationship of employer and salesman in accord-
ance with the first three subdivisions of the succeedling article.
ARTICrLE 11i-TERMINATION OF RELA-TIONSHIP
The relationship between the salesman and employer may be ter-
minated in the following ways only .
1. By mutual consent in writing.
2. By decision of a Board of ALrbitration.
3. By terms of a written contract.
4. Should contract in writing fail to provide for termination, or
in the absence of a written contract, on the expiration of thirty
days after written notice by the employer to the salesman by regis-
An~c=nar X ENFORGrEMENT
Salesmen may form associations, adopt rules and regulations, set
up organs for the enforcement of this code and for the prosecution
of violations t~hereof.
ARTICLE CI--EFFECTIVE DATE
This code shall become effective on the tenth day after it has been
approved by the President of the United States.
This code is submitted in behalf of the Silk and Rayon Fabric
Salesmen's Association, Inc.
Max LEVINSON, EsQ.,
Attorney for Assolcimt~ion, Offi'ce & P. O. Address,
591 Fifth Av~enuee, Borough of Manh~attan, Ci~ty of NewB Yorkl.
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