Pbar leby the SuEpg~oerlenden of Documents, WashingtonD.C. - Price 5 cents
Registry No. 228-03
Approved Code No. 151
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON DECEMBER 15, 1933
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
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Approved Code No. 151
CODE OF FAIR COMPETITION
As Approved on December 15, 1933
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Indust~rial
Recovery Act, approved June 16, 1933, for myS approval of a Code
of Fair C~ompetition for the RIlillinery Industry, and hearings~ having
been held thereon and the Administrator having rendered his report
containing an analysis of the said code of fair competition, together
with his recommendations and findings with respect thereto, and
thle Administrator having found that the said code of fair competi-
tion complies in all respects with the pertinent provisions of title I
of said act and that the requirements of clauses (1) and (2) of
subsection (a:) of section 3 of thle said act have been met,
NOWt, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and other-
wise, do hereby adopt and approve the report, recommendations, and
findings of thle Administrator and do order that the said code of
fair competition be and it is hereby approved, subject to the follow-
1. That the provisions of this code shall be in full force and
effect only until May 15, 1934. Prior to that date, the code authority
shall make recommendations to the Administrator in regard to the
continuance or the amendment of any or all provisions of this code.
2. A special board shall be appointed by the Administrator for
the purpose of determining after notice and hearing whether the
scales applying to a particular area, market, or member of the in-
25692*---2441-151 33 1 1
dustry should be stayed or modifiedl because of great and unusual
hardship to such area, market, or member of the industry by reason
of the application of such scales thereto.
8. Provision is made in section 5 of article IV by which any
person on whom undue hardships are imposed may be granted an
opportunity for relief.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HUan S. JoHNSON,
Aldm~ini stfrat or.
TanIF WarrI[E HOUSE,
December 15, 1983.999~~~~~99995
The PRESIDENT, NVME 7 98
The WGhite House.
SmR: This is a report of the hearing onl the Code of F~air Com-
petition for the Mfillinery Industry, conducted in Wrashington on
August 1 and 2, in accordance with the provisions of the Ntoa
Industrial Re~overy Act.
PROV'ISIONS OF THE CODE FOR HOURSi AND WrAGES
Factory employment is limited to thirty-seven and one half hours
per week, except that the Administrator may permit a certain amount
of overtime during peak periods, should conditions so require. Time
and one half will be paid for all overtime work. The Code provides
also that should conditions at any time warrant such a step, the
Code Authority or the Administrator may further reduce the maxi-
mum hours. Factory operations are limited to one shift a day,
five days a week.
The Code provides a basic minimum of fourteen dollars for em-
ployees in establishments located in greater New Y'ork, in the ter-
ritory within a hundred-niile radius of the City of Chicago and in
the States of New Jersey, Pennsylvania, and Connecticut, and a
basic minimum of thirteen dollars Ifor all other parts of the count~ry.
Minimum wages are also specified for blockers, operators, cutters,
and milliners. Such minimum rates vary between forty-five cents
per hour and one dollar and ten cents per hour. It should be noted
11n particular that the Code establishes machinery for readjustment
should the wage rates specified prove inequitable.
The minimum age of employees is fixed at sixteen years, home-
work is abolished, and manufacturing operations under unsanitary
EcowoMnc EFFECT OF THE CODE
The thirt~y-seven-and-one-half-hour normal week for factory em-
ployees with the additional pay for overtime should tend to level
employment peaks in this Inclustry and increase the number of
workers. Inasmuch as style is such an important element in this
industry, seasonal peakrs have been very pronounced. It is hoped,
however, that the hourprovisions of this Code, along with the con-
trol of style piracy, wildo much to even employment throughout
the year. In the spring of 1929 (peak season) there were 37,760
workers engaged in this Industry. By the spring of 1932 this num-
ber had dechned to 29,7190, and by the spring of 1933 to 27,440.
These figures indicate an unemployment of 10,320 workers at the
peak of the season. Other things remaining equal, the thirty-seven-
and-one-half-hour week will require about 28 percent more workers.
Ap~lproximnately 75 percent of those now unemployed will be reem-
ployed as a result of the provisions of this Code. A thirty-five-hour
wee~k would be required to absorb all unemployment. Because of
the increasedl cost involved, however, and the difficulties of further
readjustment, it; was thought better to allow thirty-sev-en and one
half hnours per week at the present time and in the future to reduce
the hours still further should conditions so require and so per~mit.
There is no information available to allow oin estimate of t.he
increase in t~he pay roll attributable to thie wage provisions of this
Code. It is evident., however, that the increase will not be great
since there are not many unskrilled workers and since a good part of
the skilled workers whose minimum wages are set by this Clode,
customatr~ily, in New York at least, recceive higher than the wages
specified. Such increase in. payr rolls as these provisions will bring~
about will effect primarily the mannufacturing centers outside of
Ne~w York. A considerably larger increase in pay roll will result
from reduction of the w~ork week. Thle reduction of hours alone will
add about 28 percent to the present pay roll.
The percentage ratio to thie value of product is 22.5. An increase
in the pay roll of 28 percent -would, therefore, raise the factory
selling price 6.3 percent. Consequently, in this industry at least,
pur~chaslng power will be increased much morle rapidly and to a
much greater exztenlt than prices.
The Administrator findls that:
(a) The Code as recomnmendled complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
t.ion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof ; and that
(b) The applicant groups impose no inequitable restrictions on
admission to membership t.herein and, collectively, are truly repre-
sentative of the Millinery I~ndustry; and that
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises, and will not oper-
ate to discriminate against th~em, and will tendl to effectuate the
policy of Title I of the National Industrial Recoery Act.
It is recommended, therefore, that this Code be immediately
HUGaH S. JoHNson,
CODE OF FAIR COMPETITION
To effectuate thie policies of Title I of the National Industrial
Recove~ry Act, the following provisions are established as a Code of
Fair Clompetit~ion for the M~illineryv Industry. and shall be the
standard of fair competition for this Industry, and shall be binding
upon every member thereof.
ARTICLE II DEFINITIONS
1. The term "L industry as used herein includes the mianufacture
of millinery as hereinafter defined, and such related branches or sub-
divisions as may from time to time be included by the President
under t~he provisions of this Code.
2. The term '' millinery "' as used herein shall include all ladies'
and misses' headwear, whether trimmed or untrimmed, except that
it shall not include so-called "' harvest. hats."
3. The term "' employee as used herein includes anyone engaged
in the. industry in any capacity receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such
4. The term "' employer as used herein shall include every indi-
vidual, partnership, association, trust, corporation, or other form
of enterprise engaged as employer in t~he manufacture of millinery,
as hereinabove defined, and shall include all employers whlo are
engaged in any other industry or in general retail business to the
extent that they manufacture millinery as part of their business.
5. The term member of the industry includes anyone engaged
in the industry either as an employer or on his owFn behalf.
6. The terms "L President "', "Act ", and "Administrator ", as used
herein, shall mean, respectively, the President of the United States,
Title I of the National Industrial Recovery Act, and the Adminis-
trator of said Act.
AnnCer ITII-HounRs or lBnon
1. Except as hereinafter provided, no employee shall be permitted
to work in excess of thirty-seven and one half (37%/) hours in any
one (1) week nor more than seven and one half (TH/) hours in any
twenty-four (24) hour period.
2. Office employees, members of shipping and receiving crews,
engineers, and firemen shall not be permitted to work in excess of
forty-five (45) hours in any one week.
3. ]Except as hereinafter provided, no overtime shall be pernult-
ted, except that during a period of not more than six (6) wreek~s in
any one (1) season, overtime mnay; be permittedi in. any mlarket upon
thne re~commndatiotin of the Code Authority and the alpprovanl of the
Administrator, provided that time and one half theti normal ra~te of
w~ages shall be paid for such overtime work: as the Aldministr~ator
4. There shall be periodical investigations by the Code Authlority
for the purpose of determining the amount of unemployment. exist-
ing in each craft, and should the Code AuthorJity find it beneficial
for the best interests of the industry to temporar~ily reduce t'he num-
ber of hours in an~y specific craft;, this Code mnay be modified to
reduce the hours from, th~irty-seven and one half (371/,) to thirty-five
(35) or less hours per week in that craft with the approval of the
Administrator after suchr notice and hearing as he shall prescribe.
5. The provisions of this Article shall not apply to persons em-
played in executive or supervisory capacities, or to personls employed
as dlesigrners, provided such persons receive not less than thirty
dollars ($30.00) per wlteek.
6. The provisions of this Article shall not apply to outside sales-
men, or to wcatchmen, or to employees engsiged in emergency mainte-
nance or emnergency repair work.
7. The provisions of this Artcle shall apply to an~y and. all persons
who engage in anly of the operations usually performled by the classes
of employees set forth in Article IV, Section 3, of this Clode, or in
any other operations reqluiredl in the manufact.ulre of millinery, even
though such person may be a member of a partn~ersh~ip or association,
or an offcer, stockholder, or director of thie corporation engaged in
s.aid~ business; t~he provisions of this Article shall not afIpply, however,
to an individual owner of an unincorporated business engaged in the
mnunlfactur~e of millinery.
8. Subject to review by the Administrator, the Code Authority
shall issue appr~entice regulations providing for a~pprlentices' wages,
length of apprlenticeship andt the percentage of apprentices in each
9. Subject to review by the Aidministrator, the Code Authority may
designate the hour before which work shall not begin and the hour
after which w\ork shall not continue, and shall determine in which
localities such regulations shall apply.
10. No member of the industry shall kn~owingly engage any eml-
ploy'ee for any timle w~chich, when totaled with that already per-
formed with another m-ember, or members, of the industry, exceeds
the maximum permitted herein.
11. No employee shall be permitted to work in excess of five (5)
days in any seven (7) day period.
ARTICLE IV- AGCES
1. F'or thie purposes of this Code the United States shall be
divided into four (4) areas, as follows:
(a) ~Area "A"C~ shall include Greater New York and the territory
within a radlius of fiftyr (50) miles from Columbus Circle, except that
it shall not include anyg portion of the State of Connecticut.
(b) Area. B shall include the city of Chicago and the territory
within a radius of onie hundred (100) miiles of the City Hall of
Chicago, and shall also include the States of Pennsylvania andl
Connecticut. and such portions of the State of New Jersey as areO
not. included in Areat "A".~
(c) Area "' C shall include the States of lifissour~i, Kanisals, and
(d) Area D" shall include all other portions of Continental
United States not included in Areas "LA", "i B "), and "' C as defined
2. No employee not provided for by t~he wage provisions enumer-
ated in Section 3 of this Article shall be paid at less than the rate of
fourteen dollars ($14.00) per week of the mlaximlum number of hours
permitted by this Codle for such employee when emlployedl in Areas
"A8" and B" as defined in this Article, nor less than the rate of
thirteen dollars ($13.00) per week of the lumaimnum number of hours
permitted by this Code for such employee when employed in Ar~eas
"L C "? and "' D ") as defined in this Article.
3. On and after the effective date, employees engaged inl thie crafts
hereinafter set forth shall be paid the followinga standard rates per
hour, and for the purpose of establishing these standard rates for thne
various crafts, seventy-five percent (75Co) of the total workers
engaged in each craft must receive not. less than the amount set forth
in the following schedule; but in no case shall any such employee be
paid less than at the minimum wage rate provided in Section 2 of this
SArea A Area B Area 0 Area D
Blookers.~-.......... ............~..~~- ~ ~ ~ -~ ........... $1 19 $0).0 0.80 50. 70
Operators. ..................-~~ ~.~....-.~.............. I.00 .75 .67ta .60
M iliners.. .. .. .. 5 47 5. 466
4. The Code Authority shall, with the approval of thie Adminis-
trator, issue instructions to the members of the industry regarding
the classification of employees.
5. In the event that Section 3 of this Article imposes an undue
hardship on any employer, such employer miay petition through the
trade association of which he may be a member, or directly, to the
Administrator for relief. The Administrator, upon receipt of such
petition, shall conduct hearings thereon, and in the event that the
petitioner establish a case of undue hardship, the Admlinistrator may
makre such modifications of this Code as may be necessary.
6. No employee shall be paid at less than the rates of pay set forth
in this Article, regardless of whether such employee is compensated
on a time-rate, piece-rate, or other basis of compensation.
7I. T'he weekly compensation for employment now in excess of the
minimum wages heremn provided shall not be reduced, notwithstand-
ing that the hours of work in any such emlploymentnt ay be hereby
reduced, and piece rates shall be so adjusted that earnings at the
shorter hours provided in this Code shall be at least equivalent to
those obtaining under the longer hours heretofore prevailing, pro-
videdl that this clause shall not cause an advance of a~ny wage rate
of more than twenty--five (25%~) percent over the wage rate as of
July 1, 1933.
AnQTICLa: V--GENERAL LBBon Pno'Isiohns
1. No person under sixteen (16) years of age shall be! employed in
the indfust~rS. In any State an emlployrer shall be deemed to have
complied with this provision if he shall have on file a certificate or
permit duly issued by thre authority in such StaRte empowered to issue
employment or age certificates or permits, showing that the employee
is of t~he required age.
2. Employees shall have the right to organize and bargain collec-
tively through repr~esentatives of their own choosing, and shall be
free from the interference, restraint, or coercion of 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.
3. No emplloy~ee and nlo one, seeking employment shall be required
as a condition of employment to join an~y company union or to re-
frain from jolmng, orgamizmg, or assisting a labor organization of
his own choosing.
4. Employers shall comply ihth mamu horoflbr
minium ate of ayandothr conditions of employment, approved
or prescribed by the President.
5. Within each state, this Code shall not supersede any laws of
such State imposing more stringent requirements on employers regu-
lating the age of employees, wages. hours of w~ork, or health, fire,
or general worki;ng conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act
or of this Code, nror shall they~ use any subterfugae to frustrate the
spirit and intent of this Code.
7. Each employer shall post in a conspicuous place copies of
Articles III[1, IVF, and VT of this Code.
8. No member of the industlry shall permit work to be dlone in any
homes or tenemeint houses, nor In any~ basemnent, unsanitary building,
build~ingr unsafe on necount. of fire risks, or otherwise dangaerou~s or
detr~imentall to health.
9. Each emplloyer shall file with the Code Autllhority proof satis-
factory to said Xuthority of compliance with all labor laws and
regulations. health and sanlitation laws and regulations, fire laws and
regulations, and other similar laws and regulations relating to the
operation of mannufacturinrr establishments; provided, however, that
the determination byv the Pode Authority as to whether the proof
s~ubmlitted to it is satisfactory as aforesaid shall be subject to review
by the Admninistrator.
ARTICLE VI ADMINISTRATION
1. A Code A~uthorityv is hereby constituted to cooperate with the
Administrator in the administration of this Code.
2. T'he Code Authority shall consist of eighteen (18) members
or such other number as may be approved from time to time by the
Administrator, and shall be selected subject to the approval of the
Administrator, from such groups an'd in such numbers as hlereinafter
(a) Tw\o (2) members shall be appointed b-y the M~idw~estern
Millinery Association, Inic.
(b>) One (1) member shall be appointed by the Associated M~illi-
nery Industries of St. Louis (M~o.), Inc.
(c) One (1) member shall be appointed by the New England
Milhnery M~anufacturers and Jobbers Association.
(d) Four (4) members shall be appointedl by the Wom~en's Head-
wear Group, Inc.
(e) Four (4) members shall be appointed jointly by the Eastern
Millinery Association, Inc., and the National Association of Ladies'
(f) One (1) member shall be appointed by the Pacific Const
(g) One (1) member shall be appointed by the Philadelphia
Millinery Mlanufacturers Association.
(h) One (1) member shall be appointed by the MIillinery M'anu-
facturers of Atlanta, Georgia.
(i) One (1) member shall be appointed by the Cleveland Hat
(j) Two (2) members representing organizations of labor shall
be appointed by the Administrator on the nomination of the Labor
Advisory Board of the National Recovery Administration.
(k) One (1) member miay, in the discretion of the Administrator,
be appointed or selected by such other group or interest as the
Administrator may designate.
(1) In addl~it.ion to thelc foregoing members, the Administrator may
appoint not more than three (3) members, with or without vote, ats
he shall determine. Such members and the Administrator shall be
given notice of and may participate in all meetings of the Code
3. Each of the foregoing associations shall file with the Adminis-
trator the names of such members as it shall appoint to the Code
Authority and shall inform the Administrator immediately of any
new appointment which it may at any time make.
4. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall:
(1) Impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
5. In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper, and may require an appropriate modi-
fication in the method of selection of the Code Authority.
6. Nothing contained in this Clode shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem.
ber of the Code Authority be liable in any manner to any one for
any act of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of thre Code Authority exercising
reasonable diligence in the conduct of his duties hereunder be liable
to any one for any action or omission to act under this Code, except
for his own w\Jillful .misfensance or nionfeasance.
i. The Code AC~uth~ority shall have the following duties and powers
to the extent permitted by this Act, subject to the right of the Ad-
ministrator, on. review, to disapprove or modify any action taken
by the Code Authority.
(a) To select officers and agents and to assign to them such duties
as It may consider advisable, to provide rules for its procedure and
continuance as the administrative agency of this Code, in accordance
with the provisions of the Aect, and to submit to the Administrator
true copies of its bylawps and regulations and any amendments when
made thereto, and minutes of meetings, together with such other
information as to its activities as the Administrator may deem neces-
sary to effect the purposes of the! Act.
(b) To obtain reports through a confidential agent from membersJ
of the industry, not more often than semimonthly, with respect
to wages and hours of labor, conditions of employment, number of
employees, and other matters pertaining to the administration and
enforcement of this Code in such form and at such times as the Code
Authority- with the approval of the Admlinistrator may require, and
to submit~such reports or parts thereof to the Achnlinistrator as he
may require mn order that the President may be kept informed as to
the observances of this Code. All reports received by such agency
shall be kept secret and confidential except that they hall be avail-
able to the Administrator. Such agency, after analyzing such
reports, may disclose without individual identification, only general
findings based thereon to the Code Authority and to any trade asso-
ciattion approved by th~e Code Authority for distribution to persons
(c) To recommend provisions for uniform cost and/or accounting
sytems for each Division of the industry which, upon approval by
teAdministraztor and after suchl notice and hearing as he shallI
prescribe shall become a part of this Code. Any member of the
industryr shall have the privilege of continuing any cost and/'or
accounting system now in use or of instituting a new cost and/or
accounting system suitable and adapted to his particular needs, pro-
vided that the selling price arrived at by thle use of any such system
shall not be less than the cost of t-hat particular article which would
be arrived at by the use of the uniform cost system recommended
by the Code Authorityr, and approved by the President.
(d) To prepare and recommend a uniform sales contract or order
blank for the use of persons to whom this Code is applicable.
(e) To initiate consider, and recommend to thee Administrator
proposals for modifications or amendments to this Code. Upon the
approval of the President, after such hearing as he may prescribe,
such proposals shall be incorporated into this Code and have the
same force and effect as if originally made a part hereof.
(f) T~o undertake an immediate and complete investigation, in
cooperation with other Code Authorities in related industries, of
style piracy and to recommend to the Administrator, as promptly as
possible, appropriate means for the regulation and control of style
piracy, which recommendations, upon the approval of the Adminis-
trator after such notice and hearing as he shall prescribe, shall
become effective provisions of this Code.
(g) To coordinate the Administration of this Code with such
other codes, if any, as may be related to any division or subdivision
of this industry, with a view to promoting joint and harmonious
action on matters of common interest, and in particular, but without
limitaztion, to make recommendations to the Adm~inistrator on ques-
tions of overlapping jurisdictions.
(h) To employ such trade associations and other agencies as it
deels proper to assist it in carrying out any of it~s activ-ities, pro-
vidd tatsuch trade associations and other agencies comply with
the provisions of this Code, and to pay thle expenses incident thiereto.
Nothing herein shall in any way relieve the Code Authiority of any
of its responsibilities under this Code.
8. Any person affected by an action taken by thle Code Authority
shall have the right to appeal to the Administrator.
9. In addition to thle information required to be submitted to
the Code Authority, there shall be furnished to government agencies
such statistical information as the Admiinistrator miay deem neces-
sary for the purposes recited in Section 3 (a) of the Alct.
10. The Administration of this Code, so far as it, affects such
establishments operating under thle Retail Code as ar~e commonly
known as department stores or specialty stores, whose miillinery de-
partments are but one of numerous departments~ of su~ch establish-
ments, and the volume of business of whose millinery depart-ments
constitutes not more than ten percent (10%b) of the volume of busi-
ness of the entire establishment shall be testedd in the Retail Code
Authority. SaidZ Retail Code Aluthority shall be responsible for
the Administration of this Code as herein provided to th~e Adminis-
trator in charge of the Code of Fair Comnpetition for the 10illinery
Industry. Nothing hereini contained shall1 be construed as relieving
the millinery department of any department or specialty store fr~om
the provisions of this Code.
ABTncLE VII N.R.A. LABEL
1. All millinery manufactured subject to the provisions of this
Code shall bear an NRA label or an authorized substitute therefore
to symbolize to purchasers of said millinery the condcitions under
which said millinery has beenl manufactured.
2. Under the powers vlested in the Admlinistrator by Executive
Order of October 14, 1933, and under grant of the necessary authority
by him, the Code Authority shall have the exclusive right in this
industry to issue and furnish said labels to the members thereof.
3. Each label shall bear a registration number especially assignled
to each member of the industry by the Code Authority, and shall
remain attached to all such mnillinery w~hen sold to the retail dis-
4. Any and all members of the industry may apply to the Code
Authority for a permit to use such NRA label, which permit to use
the la~bel shall be granted to theml, but only if and so long as they
comply with this Code.
5. Subjec to the approval of the~ Admrinistrator, the Code Au-
thority hllestablishl rules and regulations and appropriate mla-
ch~ineryr for thet issuance of labels and the inspection, examination
and supervision of the practices of members of the industry using
such, labels for the purposes of ascertaining the right of such mnem-
bers of the industry to the continued use of said laberls; of protecting
purchasers inl relymlg on said labels; and of insuring to each indi-
vtidual member of the industry that the symbolisml of said label wvill
bet maintained by virtue of compliance w~ith the provisions of this
Code by all other members of the industry using said label.
6. T'he charge made for such labels by thbe Code Auth~ority shall
at all times be subject to supervision and orders of the~ Administ~ra-
tor and shall be not morec than an amount necessary to cover the
actual reasonable cost thereof, including actual printing, d-istribu-
tion, administration, and supervision. of the use thereof as herein-
above. set forth.
ARTICIA VTIII 'TRADE ]PRACTICES
1. In~acowrate .4dverisfi~,ing.-No member of the industry shall pub-
lish advertising whetherr printed, radio, display, or of any other na-
ture), wFhich is misleading or inatccura~te in any material particular,
nor shall any member, in. any way, misrerpresent any goods (includ-
.ing but without limitation its use, trade marki, grade, quality, qluan-
tity, origin, size, substance, character, nature, finish, material, con-
tent, or preparation) or credit terms, values, policies, services, or t~he
nature or form of the business conducted.
2. False Billinag.--No member of the industry shall krnowingly
withhold from or insert in any quotation or invoice any statement
that makes it inaccurate in any material particular.
3. Inarccuratcre Labdlinlg.---No member of the industry shall brand
or mark or pack any goods in any manner which is intended to or
does deceive or mislead purchasers wnith'f respect to the brand. grade,
quality, quantity, origin, size, substance, character, nature, finish,
materal content, or preparation of such goods.
4. Inazrccurat7e references to Co0mpetitors, etc.--No member of t~he
industry shall publish advertising which refers inaccurately in any
material particular to any competitors or their goods, prices, values,
credit terms, policies, or services.
5.~ Threats of Law~ Sucits.-No member of the industry shall publish
or circtilate unjustifiedl or unwarr~anted threats of legal proceedings
which tend to or have the effect of hrarassing5 competitors or intimi-
dating their customers. Failure to prosecute in due course shall be
evidence that anly such threat is unwarranted~ or unjustified.
6. Secret Rebates.-o member of the industry shall secret.1v di-
rectly offer or make any payment or allowannce of a rebate, refund,
commission,, credit, uinearned discount, or excess allowance, whether
in the formi of money or otherwise, nor shall a member of the indus-
try secretly offer or extend to any customers any special service or
privilege nlot extended to all customers of the samee class, for the
purpose of influencing a sale.
7. Selling on Con~signnwnt!.-- No member of t~he industry shall ship
goson consignment except under circumestnces to be defined by the
CoeAuthorit~y and approved by the Administrator.
8. Bribing Emp~loyees.--No member of the industry shall give, per-
mit to be given, or directly offer to give, anything of value for the
purpose of influencing or rewarding the action of any3 emnployree,
agent, or representative of another in relation to the business of the
employer of such employee, the principal of such agent or the repre-
sented party, without the knowledge of such employer, principal, or
C. Inter~ference zcrith Another's Conztracts.--No member of the
industry shall attempt to induce the br~eac~h of an exristing contract
between a competitor and his employee or customer or source of
supply; nor shall any such member interfere with or ob~struct the
performance of such contractual duties or services.
10. Ret~ur) n of MVerch~andise.--No member of th~e industry sha~ll
accept for credit the return of merchandise from a purchaser, unless
such merchandise is not in accordance with the purichaser's specifica-
tions and in accordance with the order placed; if merchandise is not
in accordance with the purchaser's specifications or is not in accorda-
ancee with the order placed, then and in such event suich merchandise
miay be returned not later than five (5) days after thle receipt thereof.
Under no circumstances shall the return of merchandise be accepted
by a member of the industry if retained by the purchaser for more
than five (5) days after the receipt thereof.
11. Assignments.--No member of the industry shall hereafter tak~e
or receive directly or indirectly from any customers, either before
or after the delivery of merchandise, an assignment of accounts
receivable, or security in any form wha~tsoever for palyment of the
purchase price of merchandlise without first notifying the Code
Authority that such assignment or security is about to be received.
12. Term)is and Di~scounts.--The Code Authority shall have power
to recommend to the Administrator provisions concerning uniform
terms and discounts, which recommendations, upon the approval of
the Administrator, shall become effective as part of this Code.
13. F.O.B. Shipmienrts.--T he Code Authiority shall have power to
recommend to the Administrator provisions concerning F.O.B.
shipments, which provisions shall, upon the appr~oval of the Admiin-
istrator, become effective as part of this Code.
14. Allowance forl Adverltisin.g.--The Code Authority shall have
power to recommend to the Admninistrator provisions concerning
allowances or discounts for advertising or payment for space in news-
papers, magazines, guides, or directories on behalf of retailers to
be used in promoting the sale of merchandise~ to the consumer,
which recommendations shall, upon the approval of th~e Admin-
istrator, become effective as part of this Code.
15. Other U~nfair Prarctices.--Nothing in this Code shall limit
the effect of any adjudication by the Courts or holding by the Fed-
eral Trade Commission on complaint, finding, and order, that any
practice or method is unfair, providing that such adjudication or
holding is not inconsistent with any provision of the Act or of
1. This Code and all the provisions hereof are expressly made sub-
ject to the right of the President, in accordance with the provisions
of subsection (b) of Section 10 of the National Industrial Recovery
UNIVERSITY OF FLORIDA
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3 1262 08486 8230
Act, from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under title I of said Act and
specifically, but without limitation, to the right of the President to
cancel or modify his approval of this Code or any conditions imposed
by him upon his approval thereof.
2. This Code, except, as t~o provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
mrodification to be based upon application to the Administrator and
such notice and hearing as he shall specify, and to become effective
on approval of the President, except. as otherwise provided herein.
ARrlCLE X- If90oLoroES
No provision of this Code shall be so applied as to permit m~ono-
chies or monopolistic practices, or to elinunate, oppress, or discrimn-
nate against small enterprises.
Whereas the policy of the Act to increase real purchasing power
will: be mnade impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases should be delayed and that, when made, t~he same should,
so fiar as reasonably possible, be limited to actual increases in the
Fifectivle Date.--This Code shall become effective on the second
Monday following its approval by the President of the United States.
Approved Code No. 151.
Registry No. 228-03.