Code of fair competition for the light sewing industry except garments as approved on January 23, 1934

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Material Information

Title:
Code of fair competition for the light sewing industry except garments as approved on January 23, 1934
Portion of title:
Light sewing industry except garments
Physical Description:
p. 403-426 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Sewing -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 299-50."
General Note:
"Approved Code No. 226--Reprint."
General Note:
"Includes Amendments Nos. 1-6 Incl."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004946248
oclc - 656530425
System ID:
AA00006673:00001

Full Text




NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION



LIGHT SEWING INDUSTRY


INCLUDES AMENDMENTSi NOS. 1--6 INCL.







...--- """"UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1984


Fror sale by the Superintendent of Documents. Washington, D.C. Price 5 conta


Approved Code No. 226--Reprint


Registry No. 299--50


WE DO OUR PART


EXCEPT GARMENTS

AS APPROVED ON JANUARY 23, 1934

























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, M~ass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, 111ich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
I~ndianapolIs, Ind.: Chamber of Commerce Building.
Jacksonville, Fila.: Chamber of Commerce Building.
KEansas CityT, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadwaay.
Louisville, KyJ.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Mliinneapolis, M~inn.: 2r18 Federal Building.
New Orleans, L~a.: Rloom 225-A, Custombouse.
New York;, N.Y.: 7834 Custoshouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia. Pa.: 422 Commercial Trust Building.
Pittsburgoh, Pa.: Chamber of Commerce Building.
Portlang, Oreg.: 215 New Post Office Building.
St. Louls, MIo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Battle, Wash.: 800 F'ederal Offc Building.










Approved Code No. 226


COD)E OF` FAIR COMVPETITION
FOR THE

LIGHT SEWINGU~ INDUTSTRYT EXCEPT GARMENTSS

As Approved on January 23, 1934





ORDER

APPROVING CODE OF FAIR COMPETITION
FOR THE

LIGHT SEWING INDUSTRY EXCEPTT GAIRMEll~NTS

An application having been duly made pursuant to and in full
compliance with t~he provisions of T'itle I of the National Industrial
Recovery Acct, approved June 16, 1933, for approval of a Code of
Fiair Competition for the Light Sewing Industry ]Except Garments,
aind hearings having been duly held thereon and the annexed report
on said Cod~e, containing findings with respect thereto, having been
made and ~directed to the Pre~sidenlt:
NOWT, THEREFORE, on behalf of the President of the United
States, I, Hugh 8. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do nd that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it Is hereby approved.
HUGH- S. JOHNSON,
Admiuistra~tor for Industrial Recovery.
Approval recommended :
A. D. WHITESIIDE,
Divisiont Administrador.
WAFTSHIBNGITO~N D.C.,
January 93, 1931,.


uses*-ur as 3~-


(4083)











T1anO PRESIEPPT,
The Wh~ite Hlowe.
Sm~i: This is a report on th Rearing on the Code of Fair Com-
petition for the ~igdht Sewing Industry Except Garments, held in
accordance with the provisions of the National Industrial Recovery
Act, in the Chinese Rfoom of the Mayflower Hotel, on November 28,
1933. The Code which is attached was presented by duly qualified
and authorized representatives of the Indusryfr complying with stat-
utory requirements, said to represent 75 percent or moore in volume of
each division of the Industryr.
In accordance with the customary procedure every person who had
filed a request for an appearance was freely heard mn public, and all
statutory and regulatory requirements were complied wit.
TIhis Code is a combination of a number of separate Codes origi-
nally submitted to the A~dministration. These separate Codes would
have placed several divisions of this Industry under completely sepa-
rate documents. Should these Codes have been put through sepa-
rately, manufacturers of more than one of the articles now included
~within thlis Cfode would havre been obliged to operate under several
Codes. 3Furthermore, a large number of small sewn articles not
listed specifically' inJ any _prop osed Code might nlot havie been brought
under the jurisdiction of the A1Ict.
Thne tendency of Ilndustry Groups and Associations was to submit
Codes for their principal items of :manufacture, but to overlook or
fail to include the maany small .items made by thyem. It would be
almost :impossible to enumerate these many small items in separate
Codes. Had they been included in the definition of the larger sepa-
ra~te sewing codes other than garments, manufacturers would have
found themselves operating under a multiplicity of such codes.Ac
cordingly, the Code submitted herewit is designed to coordinate all
sewn articles other than garments that have not or are not being
granted separate Codes.
THE INDUSTRY

The Industr~y as represented by the seven divisions now specifically
included in the Code comrprlises about 232 concerns, having a~n, invest;-
ment in 1933 of $16,323,4c~00. Inr 1928 th2e Industry provided employ-
ment 1for 10,821 employees. This figure has declined to about 8,404
workrs during 1933. The aggrer'gate annual sales have fallen from
$42,*553,270 in 1928 to $30,534,100 inl 1982.
PROVISIONS OeF TH CODn

The Code provides for a minimum wage of 321/2 cents per hour.
Emrrployees in the ]Fafbric Auto ]Equipment D~ivision, however, may
be paid at the rate of 30 cents per hour in the South. The weekly





405


compensation for employment in excess of the mrinimum wages
provided in this Code shall not be reduced although the hours of
work have been reduced and provision is made for increasing the
pay for suchz emnploym~ent by an equitable readjustment of all pay
schedules.
Office employees are permitted to work 48 hours in a~ny one week
provided they do not work more than 4b hours per week averaged
over a period of two months. H-ours of work for factory employees
are limited to 40 hours in any one wPeek: and 8 hours in. any 24-hour
period except that these employees are permitted to work 48 hours
per week for not more than. six weeks in any six months' period pro-
vcided that the number of hours shall not be in excess of 40 hours per
week averaged over a six: months' period, and provided further that;
all hours wPorkred in excess of 40 hours in anyoeweshlbepi
for at not less than one and one third (11/) times thek norall'b rate
Employees in a supervisory capacity creciving $35 per week or more,
watchmen and outside salesmnen are not limited as to hours. Emz-
ployees on! emergency repair workrj are8 excepted from the maxrimum
hour provisions but are to be paid time and one third for overtime
work. Maintenance employees are permitted to work 44 hours per
week. Operations are limited to one shift of 40 hours in the 1Mattress
Cover Division and two shifts of 40 hours each per week in all the
other divisions.
Hours of workz have been reduced from 47 to 40 by the applica-
tion of this Code. According to the Division of Research and
Planning, the actual number of hours that this Industry will operate
under the provisions of the Code will be approximately 37 hours per
week, so that t~he effect will be to reduce the hours of work betweeen
15 anld 20 percent and increase employment in the same proportion.
Average wages in this Industry will be increased from. $13.00 to
approximately $15.00 per week. This represents a substantial inl-
crease since the minimum wages must be raised considerably to
account for this change in average wPages.
Representation on the Code Authority is provided for all members
of the Industry. The Code sets up Divisional Comnmittees to admin-
ister the supplemental fair trade practices for the separate divisions
of this Industry.
There are nohily restrictive provisions in. the Code itself.
Provision is made o prohibiting the sale of merchandise below
cost in certain. divisions when and if a uniform and standard system
of cost accounting is approved byT the Administrator. No such
provision, however, wpill become effective without further approval
of the Administrator.
FINDING
I find that:
(a) Said Code is well designed to promote the policies and
purposes of Title I of the National Industrial Recovery Act, includ-
mng removal of obstructions to thze free flow of interstate anld foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promnoting the orgatnizationl of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united act ion of labor and manage-





406


ment under adequate governmental sanction and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue~ restriction of production (except as may be;
temporarily required), by increasing the consumption of industrial
aznd agricult rural products through inicreasmng purchasing power, b
reducing and relleving unemployment, by: improving standards o
labor, and by otherwise rehabilitating industry.
(b) Said IndustryT normll emloys not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c)TheCod asaproved complies in all respects wirthn thie perti-
nent provisions of saidTtleo adAt nldn ihu i
tattion Subsection (a) of Section 3, Subsect~ion (a),' of Section 7,
and Subsect~ion (b) of Section 10 thereof; and thtthe applicant
associattions are industrial associations truly representative of the
aforesaid Inldustry; anrd that said associations impose no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is noit designed to anld wil not eliminate orl oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard pror to approval of said
Code.
For these reasons, this Code! of F'air Competition ~for the Light
Sewing Industry Except Grarments has been approved.
Respectfully,
~IIUG S. JOHINSON,
Ad mni~nitrat or.
J~xarvn 23, 1934.












CODE OF FAIR COMPETITION


FOR THE
LIGHT' SEWING INDUSTRY EXCEPT GARMENTJIS


ARTICLE I--PURPOSES

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 Light Sewing Industry Except G~ar-
ments, and shall be the standard of fair competition for such
Industry and shall be binding upon every member thereof.
ARTICLE 11- nEYINITIONS

1. TZhe term Light Sewing Industry Except Garmnents or
'"Industry as used herein includes the manufacture and original
sale of all sewnm textile articles and/or table pads and/or table mats
except wearing apparel and excepting such articles as are governed
by th7e provisions of other codes of fair competition, and shall
include such related branches or subdivisions as may from time to
time be included under the provisions of this code by the President
of the United States after such notice and hearing as he may
prescribe..
2. The terms table pad and table mnat as used herein are
defined to mean any mat manufactured for use in protecting the sur-
face of tables against heat, liquids, or mazrring, composed of a
wate~r-proof surface and an insulating element such. as asbestos, cork,
pasteboard, felt paper, or corrugated paper.
3. The term member of the Industry includes, but without
limitation, any individual, partnership, association, corporation, or
other form of enterprise engaged in the Industrly either as an em-
ployer or on his or its own, behalf, and includes anyone who fur-
nishes or contracted for labor as a part of a larger or further operations
in th~e process of manufacturing any of the products of this Industry.
4. The terml employee as used herein includes anyS and all per-
sons engaged in the Induzstry however compensated, except a memer
of the Induxstry.
5. The term employer as used herein includes anyone by whom
an~y such employee is compensated or employed.
6. TLhe term productive machinery as used herein and as applied
to the divisions of this Indu1st~ry is defined:
(ba) For the Quilting Division: Quilting machines.
()For the Comfortable D~ivision : Hanndl-gurided~ sewing machines
and hantd-needlle work equipment, and automatic quilting machines.
(400l





408


(c) F'or the Covered Carpet Padding Division:. Carpet lining,
sewmng and quilting machines, garnetts, lappe~rs, pickers, stitching
and bending machines, and cloth-cutting machines.
?. The term "'ALct and "LAdmlinistrator as used herein mean
respectively T'itle I of the National Industrial Recovery Act and the
AIdminisrtrator for Industrial Recovery.
AnaTciaE III---founas

1. No office employee shall work or be permitted to work in excess
of forty (40) hours per w~eek, averaged over a period of two months,
or forty-eight (48) hours in any one week: or eight (8) hours mn any~
twenty-four (24) hour period.
2. No other employee, except as hereinafter provided, shall work
or be permitted to work in excess of forty (40) hours mn any one week
or eight (8) hours in any twenty-four (24 hour period, except that
such employees may be permitted to work forty-eight (48) hours per
week for not more than six (6) weeks in anyT six-m~onth period, pro-
vided that the number of hours shall niot be in. excess of forty (40O)
hours per weef~k averaged over a six. months' period. Work done in
excess of forty (40) hours in any one week, however, shall be paid
for at not less than one and one third (~1/) times the! normal rate.
3. TChe maximum hours fixed in the foregoing sections shall not

(a)~ Exectives and employees in a managerial or supervisory ca~-
p city whrEo receive tit-five dollars ($35.00) or m~ore per wr~eek,.
wiatchmr~en, and outside saesmen.
(b) Repair-shop crews, elnginleers, electricians, and firemnen, w9ho
shall be permitted to work not in excess of forty-four (44) hours per
week.
(c) 1Employees on emergency mlaintenlance or emergency repair
work involving breakdowns or protection. of life or property, bult in
any such special case overtime shall be paid for at nlot less than one
a~nd one third (1%3) times the normal rate.
At the end of each calendar month every employer shall report to
the Code Authority hereinafter provided for, in such detail as may
be required, the number of man-hours worked in that month in1 cases
of emergency and the ratio which said emergency mnan-hours bear to
the total number of man-hours of labor during said month.
4. 1Memnbers of the Industry shall not operate for more than two
(f2) shiifts of forty (40) hours each per week, except as provided
hereafter in. supplemental provisions.
5. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours prescrbd for
each week and day, wPhether employed by one or more employers.
ARTICLE IV-WAP;GIES

1. N~o employee shall be paid at less than th~e rate of 324/ cents
per hour except that employees in th ~Fiabric Auto Equipmaent ~ivi-
sion m~ay be paid at the rate of not less than 30 cents per hour in the
Southern States, which. shall include onl the States of Virginia,
North Carolina, South. Carolina, Georgia, Filorida, Alabama, M~is-




409


sissippi, Tennessee, Kentucky, Louisiana, Arkansas, Oklahoma,
Texas, and thne District of Columrbia.
2. This Article establishes a minimum rate of payV, regardless of
whether an employee is compensated on a tim~e-ratie, pieceworkr, or
other basis.
3. The weekly rate of compensation for employment now inl excess
of the minimum. wages herein provided shall not be reduced (not
withstanding that the hours worked in such. emnploymaent may be
hereby reduced), and the pa~y for such emaploymaent shall be
increased by an equitable readjustment of all pay schedules.
4. Fiemnale employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
5. A person whose earning capacity is limited because of age or
phy-sical or mental handicap may be employed on light work at a
wage below the minimum established by this Code if the employer
obtains from the State authority designated by the United States
Department of L~abor a certificate authorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Atuthority a list of all such
persons employed by him.
AnRTICIa V---GENERAL Lanon PnovIsions

1. No person under sixteen (16) years of age shall be employed in.
this IndustryV. In any State any employer shall be deemed to have
complied with this provision if he shall have on file a certificate or
permit duly~ issued by the ~Authority in such State, empowered to
issue employment or age certificates or permits, showing that the
employee is of the required age.
2. 1Employees shall have the right to organize and bargain collec-
tively through representatives of their owPn 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 mn other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company umion or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing.
4. Employers shall comply with. the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment, approved or
prescribed by the President.
5. Within each State members of the Industry shall comply with
any laws of such State imposing more stringent requirements on
employers regulating the age of employees, wages, hours of wror~,
or health, fire, or general workiing conditions than under this Code.
6. Employers' shall not reclassify emnployees or dutiesofoccpa
tions performed by empoessastdeetteurssofheAt
7. Ech eploer sallpost in conspicuous places accessible to
employees full copies of this Code.
8. Until adoptionl of further provisions of this Code that may
prove necessary in order to prevent any improper speeding up of the
115448*-1573-50---35----2




410


work (stretch-outs) no manufacturing employee in the Industry shall
be required to do any work in excess of the practice as to the class of
w~ork of such employee prevailing on July 1, 1933, or prior to the
Share-The-W~ork movement, unless such increase is submitted to and
approv-ed byT the Code Authority created by this Clode, and by the
AdSministra tor.
9. No employer shall have w~orkr done or labor performed on any
article produced in this Industry in the home of a worker, except
hand worki onily as follows:
(1) Candlewrick bedspreads.
(2) Handl quilted textiles for a period of six months, but there-
after only if specifically exempted by the Administrator.
AnRICLE V--ADM\I~NISTRA\TION

There shall forthwith be constituted a Code Authority.
1. Organization and constitution of Code Aut~horit~y:
("ia) The membership of the Code Authority shall include seven
if an~d when necessity arises therefore byT further inclusion of addi-
tional D~ivisions within this Code) to be selected in a manner
approved by the Admninistlrator from the following Divlisions:
Quilting, 1 Member.
M~at~tress Covers, 1. Member.
Comfortables, 1 M~ember.
Fabric Auto Equipment, 2 Members.
Other M1emblers of the Industry, 1 Member.
In addition to the membership as above provided, there may be
three (3) additional members without vote appointed by the Admin-
istrator, one of whom may be applointedl on the nomination of the
Labor Advisory Board of the NRA.
(b) Divisional Commnittees consisting of not more than seven 1(7)f
membr each shall be selected-. by-- eac of- thefolowig iviion o
this Industry inl a manner approved or prescribed by the Adminis-
trator: Comnfortable Division, Covered Carpet Padding Division,
Fatbric Auto Equipment Division, MI~attress Cover Division, Table
Pad Division, and Quilting Division. Niew divisions of the Industry
may be established on. the recomnmendation of the Code Authority
with the approval of the Administrator. T'he Administrator may
appoint up to three members, without vote, to each of the Divisional
Committees.
(c) In order that thre Code Authority and the Divisional Com-
mittees shall at all times be truly. representative of the Indurstry;g and
in other respects comply with the provisions of the Act, the Adminis-
trator may provide such hearings as he may deem proper; and
thereafter if he shall find that t~he Code Authourity or the Divisional
Committees are not truly representative or do not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authonlty or
of the Divisional Committees.
(d) Each trade or industrial association directly~ or indirectly
participating in the selectio-n or activities of the Code Authority
or a D)\ivisional Commr~ittee shal (1) impose no inequitable restric-





411


tions on membership, and (2) submit to the Adlministrato~r trule
copies of its articles of association, bylaws, regulations, and any
amendments whe`Jn made thereto, together with suchI other informa-
tion as to membership, organization, and activities as the Adminis-
.trator mnay dleeml ne'cessaory to effectuate the pu11rposes of the Act.
2. T'he C~ode Authority a nd the Divisional Com mitt ees shall have
the following duties a~nd powerls:
(a) The Code Aut~hority shall cooperate with the AFdministrator
in the administration of the provisions of this Code. The Divisional
Comnmit~tees, subject, to the general approval of the Code Authority,
shall coop~erat~e. ith the Administrator in the administration of
the supplemental provisions applicable to their res~pecti~ve ]Divisions.
(b) The Code. Authority may from, time to time present to the
Administrator recommendations based on. conditions in the Industry
as they m~ay develop which will tend to effectuate the operation of
the provisions of this Code. The Divisional Comrmittees may p~resenlt
to the Administrator recommnendations concerning their resp~lec~t ive
supplemental provisions. Such recommendations, when alpprov\edl
by the AL~dministrator, after notice to and after opportunity given
to the D~ivisional Committees of all Divisions affected to be heard,
shall have the same force and effect as any of thle provisions of this
Code. Such recommendations mayT include recommendations for
use by all members of the Industry in their respetcti~ve D~ivisions,
of an N.R.A. label and for the establishment of the necessary
maachinery to manufacture and issue thne samle.
(c) The Code Atluthorityr shall collect statistics covering number
of employees, wage rates, employee earnings, hours of work, and
such other data as may be prescribed or approved byT the Aidminis-
trator and may designate the Divisional Committees as the ag'en~'t cie
to collect such statistics.
(d) It being found necessary to support the admini trat.~ion~~,i of
this CJode in order to effectua~te the policy of the Act anzd to malintaiinri
the standards of fair co-m pletitionr established here unclder, the Code
Authority and D~ivisional Committees are authorized, sub 7jectf to the
approval of the Administrator:
(a) To incur such ereasolwo.ble~ oblilations)1, as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which shall be held in trust for the purpuose~s of the Code
arnd raised as hereinafter pro vifided.
(b) To submit to the Adml;inistra~tor for his aprlIioral,7 sulbj/lct
to such notice and opportunity to be heard! as he may deem necessary.
(1) An2 itemzized budget of theiri, estfimatedli expenses for the fore-
going purposes, and
(B) Anl equritabl basis wuponi which the fu~nds Ilruneersry to sup-
port such budget shall be contr~ibuted by all members of the Indu.<-tryl
receiving the beneffjts acoruing from theC ,,nwif~intlenac of such stand-
arTdS, and thle administration thereof.
(c) After such budgetf and basis of contribution Zace been, atp-
proved by the Adminiistratfor to determ~~ine and secure eqluitablhe con-
tributions as above set forth by all such members of the Industry.
and to that end, izf necessary, to institute legal proce~edingsP therefore
in its own name.
Only members of the Indbustry who comply with the requirle-
ments of the Cod~e andE contribute to the expenses of its administra-





412


tion,1 as provided Iherein, and assent in writing to thea Cod~e, shall be
enti~tled to pacrtic~ipate is the selection, of the rnwmbers of the seueral~
Division~al Comanittees arnd to receive the benefits of their voluntary
acutivuities or to make~ Ise of an~y NCational Recovery Acdministration
Insign~ia. Failur to conztri'bute to thle expenses of the ad~minlis~tra-
tion of this Code, as provided her~ein, sh~lall constitute a violation of
the clode.l
(e) N1Uothing contained in this Code shall constitute the members
of the Code Authority or of the Divisional Committees partners for
anly purpose, nor shall any member of the Code Authority or of the
Divisional Comnmittees be liable in any manner to any one for any
act of anly other member, officer agent, or employee of the Code
Authority, or of the Divisional committees, nor shall any member
of the Code Authlority~, or of the DivPisional Committees, exercising
reasonable diligence in thie conduct of his duties hereunder be liable
to any one for any action or omission to act under this Code, except
for his own willful myisfeasance or nonfeasance.
3. In addition to the information required to be submitted to
the Code Autfhor'ifty there shall be furnished to government agencies
such statistical in-formation as the Administrator may deem neces-
sary for the purposes recited inl Section 3 (a) of the Act.
4. If the Ai~dministrator shall determine that any action of a
Code~ Authority, Divisional Committee, or any agency thereof is
unfair or unjust or conrtrar~y to public interest, the Adm~inistratr
mlay require that such action be suspended for a period of not to
exced tirt das t afrd n opportunity for investigation of
the merits of suchn action, and frhrcnieainb uhCd
Authority, Divisional Committee, or agSencyr, pending final action
which shall be taken onl upon approval by the Administ~rator.
Anzazan: VII--TRBDnn PRACTICES

1. The violation of any provision of this Code or of any supple-
mental provisions thereto shall constitute an unfair trade practice.
ARTICL VIII--MIJODIFCTIO
1. Thiis Code and all the provisions thereof are expiresslymd
subject to the right of the President, in accordance with tepro-
vrisions of subsection (b) of Section 10 of the A1ct, from time to time
to cancel or modify any order, approval, license, rule, or regula-
tion issued under said Act.
2. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circuxmstaces,
such modifications to be based upon application. to th Administrator,
and such notice and hearing as he shall specify, and to become
effective on approval of the Aidministrator.
ARTICLE IXZ3-MRONOPOLIES

No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or dis-
crimninate against small enterprises.
1Italicized words addedi by Amendment No. 2, approved May 22, 1984.





413


ALRrr ~X--EFlECT IVE TE:

This Code shall become effective on the tenth day after approval.
Article XI

ABuzbject to all rules, regulations, and~ orders concerning issuance
and/or ulse of labels heretofore or hereafter prescribed by the Na-
tiona! Indcu~strial Recovery Board, all members of the Ma7tte!s.4< Cover,
Comfortable and Qucilting Divrisions of the Industry sh~all afftw to all
their products, oflo~ial labels issued by the respective Divisiona~l Clom-
mittees, bearing thereon the N. R. A. insignia, this priovisio~n to be
effective on such date, not later than 45 days after approval of-this
Article, as the resptecti~ve Divisiona Comminttees may prescribe, poro-
vlidi7ng all members of the respective D3ivisions shall be given duze
notice of the aforesaid effective date by thle respective Divisional
C~ommittees.2
ABpproved Code No. 226.
Registry No. 299-50.
4 Italicized words added by Apmendment No. 6, approved Nov. 14, 1934.












COMFORTABLE DIVISION


Division No.1

I--DEFINITHON

The term Comfortable Division as used herein includes all
members of the Industry producing comfortable and comforts.
II-TRADE PRACTICES

1. No member of the Division shall sell or exchange or offer to
sell anyT product of the Division below his own cost, when and if
same may be determined as herein provided, except to meet the com-
petition of any member of the Division whose price for a product
of equivalent quality is not less than his own cost. When a uniform
and standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member
of the Divcision shall use a system of accounting which conforms
to the principles of such syst~em. The Divisional Committee shall,
subject to the approval of~ the Administrator, determine the cost
factors to be included in such system.,
The Divisional Com~mittee shall have th power to suspend the
operation of the provisions of this Section ancd to market provision
for the disposal of discontinued lines, seconds, and other sales to be
except~ed from the application of this Section.
2. Mniembers of the Division shall file with the Divisional Com-
.mittee a schedule of prices and terms of sale for the products of the
Division, within thirty (30) days after the effective date of this
Code. Such price lists may be revised only upon ~five (5) days' notice
by registered mail to th~e Divisional Committee. The Divisional
Committee shall immediately send copies of all price lists filed to all
members of the Division.
MSembers of thre D~ivision shall not sell their products at lower
prices or on more liberal terms than, set forth in their own price list.
7When anyr member of the Division revises his price list, any other
member of the Division my :revise his price list accordingly, to be-
come effective on the same date as th~e revised price list frt filed.
The following may be sold without filing revised price lists there-
for, but shall be reported to the D~ivisional Conunittee immediately
after sale: dropped lines and seconds.
"The D~ivisional Committe~ shall have the power to suspend th
operation ofI the provisions of this Section.
3. T~he following Unfair Trade 1Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee, the principal
(414)





415


of such agent or thne represented party, without the knowcpledge of
such employer! principal, or party. This provision shall not be con-
strued to prohibit free and general distribution of articles commonly
used for advertising except so far as such articles are actually used
for commercial bribery as hereinabove definedc.
(b) Using or substituting any material inferior in qualityT to that
specified by the purchaser of anly product.
(c) Maliciously inducing or attempting to induce the breach of
an existing oral or written contract between a, competitor and his
customer or source of supply or interfering with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, com-
missions, credits, or unearned discounts, whether in the form~ of
money or otherwcPise, or the secret extension to certain purchasers of
special services or privileges not ex~tenlded to all purchasers on like
terms and conditions.
(e) The branding or markiing of anyV product of the Division in
any manner which tends to deceivetr or mislead purchasers, with
respect to the grade, quality, quantity, origin, size, material content,
or preparation of such product.
(f) Selling on more liberal terms than 3/10 E.O.M. All goods
shipped to retailers after M~ay 1, may be billed as 9~/10/0 or 8/10
E.O.M., as of Acg~ust 1. Antriicipatri'onl at thLe rate of sim percentt (670)
~pezr year ma~y be allowed. After JanP1uacriy 1, business may be solicited
from scholsalers on* a basis of Aucgust 1 datinzgs soith useal terms.s
( g) Trhe failure to plainly- mark seconds.g emtigt emd
or published any false, materially inaccurate, or deceptlpve statement
by w~ay~ of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-
wise, having th tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
(i) MCaking sales upon any other terms than, expressly set forth
in the invoice pertaining to such sales.
4. The selling or offering for sale of an~y product of the D~ivision
on memorandumn or on consignment or on conditional sale shall be an
unfair trade practice.
The Divisional Committee shall have the power to suspend the
operation of th~e provisions of this Section.
a Italicised words added by Amendment No. 4, approved July 17, 1934.










MYATTRESS COVER DIVISION


Division No. 2
I--EFLINTHON

The terrr Mau~ree Gover D~ivision~" as used hlerein includes all
members of the Industry producing mattress covesrs; comfortable
ovuers; blanket covers, anld pilloreI tickS zcherr mnumfactured for sale
for the purpose of replacing ticks onz bed pri~llosoe.
II--TRADE PRACTICES

1. No member of th~e D~ivision shall sell or exchange or offer to
sell any product of the Division belowP his own cost, woPhen and if samle
may be determined as herein provided, except to meet the compe-
tition of any member of the D~ivision whose price for a product of,
equivalent quality is not less than his own cost. Wihen a uniform
and standard system of cost accounting, prescribed by the Divisional
Commttee, shall be approved by the Admainistrator, every member
of the Divirsion shall use a system of accounting which conforms to
the principles.of such system.z The Divcisional Committee shall, sub-
ject to th-e approval of the ALdmrJinistrator, determine the cost factors
to be included in such~ syst~em.
The Divisional Commnittee shall have th~e power to suspend the
operation of the provisions of this Section and to make provision
for the disposal of discontinued lines, seconds, and other sales to be
excepted from the application of this Section.
2. Members of the Division shall file with~ the Divcisional Com-
mittee a schedule of prices and terms of sale for the products of the
Division,~" within thirty (30) days after the effective date of this
Cod. uch price lists may9 be revised only upon five ()das~'
notice by registered mail to the Divisional Committee. TeDivi-
sional Comnmittee shall immediately send copies of all price lists filed
to all members of the Division.
Members of the Division shaall not sell their products at lower
prices or on more liberal term than set forth in their own price list.
When any member of the Division revises his price list, any other
member of the Division may revise his price list accordingly, to
become effective on th~e same date as the revised price list first filed.
The Divisional Committee shall have the power to susend the
operation of the provisions of this Section.
3. Th following Unfair Trade 1Practces are prohibited:
(a) G~iving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing~ or rewarding the
actionl of any employee, agent, or representative of another inr rela-
tion to the business of the employer of sulchh employee, the principal
of such agent, or the representd part, without the knowledge of
such employer, pricipal, or party. Thi provision shall not be con-
Ita~liczed words added by Amemenet No. 1, approved Mlay 1, 1934.
(4108)





417


strued to prohibit free and general distribution o-f articles com~monly
used for advertising except so far as such~ articles are actually used
for commercial bribery as hereinabove defined.
(b)_ UCsing or substituting any material inferior in quality to that
specified by thle purchaser of anry product.
(c) Maliciously inducing or attempting to induce the breach of
an existing oral or writen contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, com~-
m~issions, credits, or unearned discounts, whether in the form. of
money or otherwise, or the secret extension to certain purchasers of
special services or privrileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of any product of the Division in
any manner which tends to deceive or rmslead purchasers, wit re-
spect to the grade, quality, quantity, origin, size, material content,
orrparation of such product.
fSelling on more liberal terms than 3/10 E.O.MS.
gThe failure to plainly mark seconds.
hThe making or causing or knowingly permitting to be made
or published an~y false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, ~finish, or
preparation of any product of the Di~vision, or the credit terms,
vazlue~s, policies, or services of any Imember of the Division, or other-
w\ise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
(i) Making sales upon any other terms than expressly set forth
in the invoice pertaining to suchl sales.
4. The selling or offering for sale of any product of the Division
on memorandum or on consignment or on conditional sale shall be
anr ulnfair-trade practice.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.
III-Houns

1. Members of the Division shall not operate for more than one
shift of forty (40) hours.











TABLE PAD) DIVISION


Division No. 3

I-DLE FINITION

The term Table Pad Dlivision as used herein includes all mem-
bers of the Inldustry producinga table pads and/or table mats.
II1--TRADE ]PRACTIOES

1. No member of the Division shall sell or exchange or offer to
sell a~nly product of the Division, except small noveltyt mats, below
his own cost of labor and rawf materials exceept to meet thle competi-
tion of any member of the Divisio~n whose price for a product of
equivalent quality is not less than his own cost. Whlen a uniform
and standards system of cost~ accounting, p~rescr'ibedi by the Divisional
Committee, shall be approved by the Admlinistrator, every member of
the Division shall use a system of accounting which conforms to tfhe
principles of such syrsteml. The Divisional Commlittee shnall, subject
to the approval of the Administrator, determine the cost factors to
be inlcludled in such system.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section and to make provision
for the disposal of discontinued lines, seconds, and other sales to be:
excepted from the application of this Section.
The Administrator may suspend the operation of the provisions
of this Section after giving notice to the Division.
2. M~lembers of the Division shall file with the Divisional Commit-
tee a schedule of prices and terms of sale for the products of the
Division, except small novelty mats, within thirty (30) days after
thze effective date of this Code. Such price lists mnay be revised only
upon five (65) days notice by registered mnail to thle Divisional Com-
mxitte~e. TeDivisional Committee shal~l immediately send copies
of all price lists filed to all members of thne D~ivision.
Members of the D3ivision. shall not sell their products at lower
prices or on more liberal terms than set forth in their own price
lit.When any member of the Division revises his price list, any
other member of the D~ivisioon. may revise his price list accordingly,
to become effective on the same date as the revised price list first ~filed
Th~e Divisionral Committee shall have the power to suspend the
operations of the provisions of this Section.
Th'le Administrator may suspend the operation. of the provisions
of this Section after giving notice to the Division.
3. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
atnypthing of value for the purpose of in~fluenrcing or rewarding the
(418)





419

action of any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee, the principal
of such agent, or the represented party, without the knowledge of
such employers principal, or party. This provision shall not be con-
strued to prohibit free and general distribution of articles commonly
used for advertising, except so far as such articles are actually used~
for commercial bribery as hereinabove defined.
(b) Us~ing or substituting any material inferior in, quality to that
specified by the purchaser of any product.
.(c) Maliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his cus-
tomer or source of supply, or interference with. or obstructing the
performance of anry such. contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, comnmis-
sions, credits, or unearned discounts, whether in the form of money
or otherwise, or the secret extension to certain purchasers of special
series or privileges not extended to all purchasers on like terms
and conditions.
(e) T~hebrndi-ngr or marking of any product of the Division
in any manner which tends to deceive or mislead purchasers, with
respect to the grade, quality, quantity, origin, size, material content,
or preparation of such~ product.
('f) Selling on more liberal terms than 2Cr0 10 days, end of month,
net 60 days.
(g) The failure to plainly mark: seconds.
(h) The making or cusing or knowringly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way~ of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
pr~eparation of any product of the Division, or the credit terms,
values, policies, or services of any member of thre Division, or other-
wise, having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
(i) MSaking sales upon anzy other terms than expressly set forth
in~ thie inrvoice pertaimlng to such sales.
(j) M/aking any~ allowances or discounts for advertising or for
payment for space mn newspapers, magasmnes guides, or directories on
b~ehalf of any retailer to be used in promoting the sale of m~erchan-
dise to thne consumer. Thle supplying of cuts, matrices, or windowFr
cards shall, however, not be included in such prohibition. This
provision shall not be circumvented by advertising directly for the
benefit of any purchaser or particular group of purchasers. 1Vothin~g
heein, however, shall be deemed to prohibit any member of the D1-
vision fromz nationally or generally advertising his merchandise so
as to benefit all of his trade equally.











QUILTING DIVISION


Division No. 4
I---DEFINITHON

The term "l Quilting Division as used herein includes aUl members
of the Industry producing quilting and quilting products.
II-TRDE PRACTICES

~,1. No member of the DIivision shall sell. or exchange or offer to sell
any product of the Divlision below hiis own cost, when and if same
may be determined as herein provided, except to meet the competi-
tion of any mrember of the Division whose price for a product of
equivalent quality is not less than his own cost. When a uniform
and standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member
of the D~ivision shall use a system of accounting whch conforms to
the principles of such system. The Divisional Committee shall, sub-
ject to the approval of th Administrator, determine the cost factors
to be included in such system.
The Divisional Committee shall have the power to suspend the
operation of thie provisions o~f this Section and to make provision
for the disposal of discontinued lines, seconds, and other sales to be
excepted from th application of this Sectioin.
2. Members of the D~ivision shall file with the D~ivisional Com-
mittee, a schedule of prices and terms of sale for th products of the
Division, within thirty (30) days after the effective date of this
Code. Such price lists may be revised only upon five (5) days' notice
registered mail to the Divisional Committee. The Divisional
Committee shall immediately send copies of all price lists filed
to all members of the Division.
Members of the D~ivision shall not sell their products at lower
prices or on more liberal terms than set forth in their own price list.
When any member of the D~iision revises hi price list, any other
member of the Divsion may revise his price list accordingly, to
become effective on the same date as the revised price list first fied.
Droppbe lines and/or 's seconds shalli be sold amnd/'or shipped
onlyr during the months of January arul August of any calendar year
and "L dropped lines and/or sreconlds cannot be sold or shipped cat
an~y other time.
For the purpose of thi~e Xection Lseconds8" are ffnished products
which havoe been damaged d26ringS thre process ofmanufacturing
qmls ad pluilting products, including misprists; and dropped
lie"are merchandise where the color assortment so not complete or
whei~re the mwrochandise has ~proved unealable.6
Italicize~d words added by amendment No. 5, approved Apug. 8, 1934.





421


The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.,
3. TPhe following Unfair Trade ]Practices are prohibited:
(a) Giving, npr~mit~ting to be given, or directly offering to give,
anyt~hinga of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee, the principal
of such atgen~t or the represented party, without the knowledge of
such employer, principal, or party. TIhis provision shall not be con-
st~rued to prohibit free and general distribution. of articles commonly
used for advertising except so far as such articles are actually used
for commercial bribery as hereinabove defined.
(b) Using or substituting any material inferior in quality- to that
specified by the purchaser of any product.
(c) Maliciously inducing or attempting to induce the breach of
an existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, coma-
mlissions, credits, or unearned discounts, whether in thze form of
money or otherwise, or the secret extension to certain purchasers of
sp~ecial services or privileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of anly product of the D~ivision in
any manner whr~ich tends to deceive or mislead purchasers, with.
respect to the grade, qua-lity, quantity, origin, size, material content,
or preparation of such product.

(g) The failure to plainly stamp seconds.
(h) The making or causing or knowingly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning thne grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of the Division, or the credit terms,
values, policies, or services of any~ member of the Division, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
(i) Making sales upon any other terms than expressly set forth in
thne invoice pertaininJg to such sales.
4. The selling or offering for sale of any product of the DIivision
on memorandum or on consignment or on conditional sale shall be
an unfair trade practice.
The Divisional Committee shall have the power to suspend the
operation of th~e provPisions of this Section.











Division No. 5
I--D EFI NATION

The term Fabric Auto Equipment Division as used herein
includes all members of the Industry producing auto seat and slip
covers, tire covers, top covers, side curtains, auto awnings, and fabric
accessories for automobiles.

II--TRADE PRsCTIcES

The following U~nfair TradeP Practicesn are prohibited :
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of in~fluencinrg or rewarding the
action of any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee, thze principal
of such agent or the represented party, witthout, the knowledge of
such -employer, principal, or party. This provision shall not be
construed to prohibit free and general distribution of articles com-
monly used for advertising, except so far as such articles are actually
used for commercial bribery, as hereinabove defined.
(b) The branding or marking of any product of the Division int
any manner which tends to deceive or misleadl purchasers, with re-
spect to the grade, quality, quantityr, origin, size, material content, or
preparation of such product.
(c) The making or causing or knowingly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way of advertisements or otherwise, whetther concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of thre Division, or the credit terms,
values, policies, or services of any member iof thLe Division, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
() The failure to plainly stamp seconds.
(e) Rendering a bill or statement of account which is inaccurate
in anyV particullar.
(f) F'ailure to sho~w the present 2pl0 excise tax on the invoice. as
a separate item, excepting in the case of those members of the Divi-
sion who sell to the robbing or wholesale trade, who shall include
the excise taxr in their selling price.
(g) T~he selling or offering for sale of any product of the Divi-
sionl on mem~orandum or on consignment or on condlitional sale shall
be an unfair trade practice.
The Divisional Committee shall have the powr to suspend the
operation of the provision of this Section.


FABRIC AUTO EQUIPMENT DIVISION




423


(h) Selling on more liberal terrrs ther e 8%, 10 days E,.O.M., net 30
emocept that dating on seasonable merchandise may be allowed, but
anticipation shall not be allowed at a rate of mo~re than 1/2 of 1%~~
per month."
(1i) F~ailure to invoice samples of complete products.
()To make any all7o-wance or discowret for advertising or for
payment for space in newspapers, magazines, guides, or directories
on, behalf of any retailer and/or w~o~lesaler to be used in promoting
the sale of mzerchatndise to the consumer in exOceSS of one-half of the
cost of the advuertisizgc; providing, however, that payment for such
advertising shall not be made until a copy of the publication contFirt-
ing the advertising together with receipted bill therefore is presented
to a1 member of the Div~isior. The supplying of cuts, mtattrices, or
window cards shall not be included in such prohibition. No0thintg
herein, however, shall prohibit any member of the Division from
nationally or generally advertising his merchandise.
(k) To mak~e a contract for a delinite quantity of advertising tire
covers at a stipulated price and to~ deliver a smaller quantity wizthoult
chac7~irgin the regular price applying to the quantity delivered.
(1) To accept orders for future requirements which do not make
provision. for quantities, emrceptintg that an average or underage of
10% is allo-wled.g
rIII
Warren, a standard system of cost accounting and methods of cost
fdinz-~zg and/or estimating capable of use by all members of the
Division is prepared by the Divisional Committee and approved by
the Adm~inistrator, full details concerning said system shall be made
ava~ilable to all members of the Division. Thereaflter, all members
of the Division shall determine and/or estimate costs ire accordance
with the principals of such methods.
Following the approval of such system no zem~ber of the Divi-
eion shall sell or eaoha~nge or offers to sell any product of the Division
below his own cost of making such producct, except to meet the com-
petition of any member of the Division whose price for a; product of
equivnlent: quality is not less than, his cost ofmaki1n~gpoLe oss d hhte product.
The DivisiionalT Comm~ittee shall have tepwrt upn h
operation of the provisions of this Article p~ro~viidedE 7ve days' notice
is given the Admiznistrator arndl the members of the Divisio~n, andu to
mnake pr~ovisrions forP the disposal of discontinued lines, seconds, and
other sales to be emocepted from thle application of this Article.G
IV
Learners may be employed for a period not exeedi~nng four (4)
w~eek2s cat a rate of not less than 80%0 of the min~im~um ~wages ea77edJ
for in7 the Code, provided that no employer may employ701 more than
10% of the total employees as leaLrnzers, and provided fuzr~ther that
any employer may be entitled to one learner at the above specified
wa~ge, and pro~vided further that no em pololer care employ as a learner
any employee who has been in the Divisionr of the Industry within
three year previous to the date of such emplDoyme~znt."
Itallets~ed words added by Amendment No. 3, approved June 29, 1934.











COVER ED CARPET PADDING DIVISION


Division No. 6
I-DIEFERIION

The term Covered Carpet Padding Division as used herein .in-
cludes all members of the Industry producing padded, quilted, paper,
and/or cloth covered carpet and rug linings and stair pads.
IZ---TRADE PRACTICES

1. No member of the Division shall sell or exchange or offer to sell
any product of the Division belowiP his own cost, when and if same
may be determined as herein provided, except to meet the comp~eti-
tion of any memlber of the D~ivision whose price for a product of
equivalent quality is not less than his own cost. When, a urfiform
and standard system of cost accounting, prescribed by the Divisional
C~ommnittee, shall be approved by the Administrator, evPery member of
the Division shall use a system of accounting whichril conforms to the
principles of such system. The Divisional Committee shall, subject
to the approval of the Administrator, determine the cost factors to
be included in such system.
TIhe Divisional Committee shall have the power to suspend the
operation of the provisions of this Section and to make provision for
the disposal of discontinued lines, seconds, and other sales to be
excepted from th~e. application, of this Section.
2. Members of the Division shall file with the D~ivisional Com-
mittee a schedule of prices anld terms of sale for the products of the
Division, withiin thirty (30) days after the effective date of this
Code. Such price lists may be revised only upon five (5) da ys
notice by registered mail to the Divisional Committee. The D~ivi-
sional Committee shall immediately send copies of all price lists
filed to all members of the D~ivision.
IMemnbers of the Division shall not sell their products at lower
prices or on more liberal terms than set forth in their own price list.
Wilhen any~ member of the Division revises his price list, anyP other
member of the Division may revise his price list accordingly, to
become effective on the same date as the revised price list first filed.
The following mayg be sold without filing revised price lists there-
for, but shall be reported to the Divisional Committee immediately
after sale: dropped lines.
The D~ivisional Committee shall h~ave the power to suspend the
operation of the provisions of this Section.
3. The following U~nfair Trade Practices are prohibited:
(a) GFiving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
(424)





425


actionl of any empoy-ee, agent or representative of another in relation
to the business of the employer of such employee, the principal of
such, agent or the represented party, without the knowledge of such
empriloyeri, principal, or party. This provision shall not be construed
to prohibit free! and general distribution of articles commnonly used,
for advertising except so far as such articles are actually used for
commrcial bribery as he~reinabove defined.
(b) Using or substituting any material inferior in quality tp that
speexfied by the purchaser of any product.
(c) ~Maliciously inducing or attempting to induce the breach of an
exlstmg oral or written contract between a competitor and his cus-
tomer or source of supply, or interference with or obstructing the
performance of'any such: contractual duties or services.
(d.) The secret payment or allowance of rebates, refunds, com-
maissions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of anly product of the Divisionz in
any manner which tends to deceive or mislead purchasers, with
respect to the grade, quality, quantity, origin, size, material content,
or preparation of such product.
() Selling on more liberal terms than 5/10 or 4/10/60 Ex.
(g) The making or causing or knowingly permitting to be made or
published any false, materially~ inaccurate, or deceptive statement by
way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospectiv-e customers.
(h) MS/aking sales upon, any other terms than expressly set forth
in the invoice pertaining to such sales.











MOTO)R ROBE DTVISION


Division No. 7

I--D EFI NATION
'The term Motor REobe Division as used hereina includes all
members of the Industry producing motor robes exclusive of loom-
finished, fringed ste~amr rugs.
II TRADE PRACTICES

1. All deliveries shall be F.O.B. factory or wTithin the Metropoli-
tan District thereof.
2. The following T~fair Trade P'ractices are prohibited:
(a) G~iving, permitting to be given, or directly o~ffering to give~,
anyt~hingr of value for tlhe purpose of influencing or rewarding the
action of any employee, agent. or representative of another in re~la-
tion to the business of thne employer of such employee, thei principal
ofhem0 such agnt or the represented party, without the kinowledge of
construed to prohibit free and general distribution of articles com-
monly used for advert ising except so far as such articles are actually
used For commercial bribery as hereinabove defined.
(b) The secret payment or allowance of rebates, refunds, coma-
missions, credits, or unearned discounts, whether in the form. of
money or otherwise, or the secret extension to certain purchasers o-f
special services or privileges not extended to all purchasers on like
terms and conditions.
(c) Selling on more liberal term than 2% 10 days E.O.M. except
that for shipments made to points west' of the Rocky SMountains
terms shall be 2%0 10 days E.O.IM. or 2%0 10 days after receipt of
goods. Goods invoiced on and after the twentyg-fifth of any mzont
may be dated as of the first day- of the following month. No antic-
ipa~tionz shall be allowed at a greater rate than 6%~ per annum.
(d) IMaking guarantees against price fluctuations.
(426)







UIVERiiiniuli SITY OF FLORIDA