NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SANITARY AND WATERPROOF
Pe r ee by the Saperintendent of Doemunents, Washington, D.C. - Prlee 5 cents
Approved Code No. 342
Registry No. 899--1-01
AS APPROVED ON MARCH 17, 1934
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Approved Code No. 342
CODE OF ]FA'IR COMPETITION
SAcNITARY ANDI WVATERPROO1F SPECIALIES
As Approved on March. 17i, 1934
COD OF FAIR COMPETITION FOR1 TH SANITARY AND A"VTERPROOF
Srac nlsANUFACTURIuNG INDUSTRY
An application having been duly made pursuant to and in full
comliance w7cith. thie provisions of TLitle I of the N~ational Industrial
Recovery Act, approved June 1.6, 1.933, for approval of a Code of
Fair Compettion Ifor the Sanitary and WTaterproof Specialties Man-
ufacturing Industry, and hearings hnav~ing been duly held thereon
and the annexed :report on said Code, containing findings with
rPnPreset. thereto, having been made and directed to the Presid~ent:
NOWV THEREFORE,: onr behalf of thne President of the U~nited
Staes,1,Hug S.JorrsnAdministrator for Industrial Recovery,
pursuant to authority vestdimeb Exec~utive Orders of the Presi-
dent, including Executive OrderNo653AdadDembr0
1933, and otherwise; do hereby incorporate by reference said annexe
report and do find tha~t said Code complies Inr all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved.
HoanH 8. JoHNson,
Ad ministrator for Industrial: Reco very.
A. D. WarrTESIDE,
TV ASHINGOTON, D.C.,
March 17, 1934
acols*-- a-o2i9-- (169)
REPORT TO THE PRESIDENT
The W~hite House.
SmR: The Public Hearing on the Code of Fa'rir Competition for
the Sanitary and Waterproof Specialties Manufacturing Industry
as proposed by the SanitaryT and WFaterproof Specialties and Manu-
facturing Association was conducted in Washington, D.C. on
November 20, 1933.
Every person who requested an appearance wpas fairly heard in
accordance with regulations of the National Recovery Administrta-
tion. The Code has the approval of the Labor, Industrial, and
Consumer's Adv~isory Boards of the National Recovery A)dmlinistra-
tion, and of the Legal Division. The Code Committee of the
submitting Association has also approved the fina~l draft to the
DESCRIPTIONN OF THE INDUSTRY
T~he Industry, as defined in the Code, includes the manufacture
of watterproof crib sheets, baby pants, dress shields, women, and
children's household aprons, women's sanitary lingerie and related
products; and thle manufactuxre of the rubber, rubberized or stock-
ineette materials which constitute the waterproof elements of these
articles by any manufacturer of the above mentioned products,
whether for use: in such manufacturer's own finished products or
for sale to another manufacturer of such finished products. The
products included wPithin the scope of this Code are personajrll items
for household use and personal attire; each emlbo~ie~s in whole or
in part material having a sanitary or waterproof qualit~y.
The industry centers in the En ctern~ Seaboard States, anld the
majority of th-e concerns are located within one hundred miles of
New York City.
TIhe Industry performs both a manufacturing and a c~onvert~ing
or assemblingf function. The manufacturing function has to do
with the production of the sanitary or waterproof elemennts; and the
converting or assembling function comprises the combination of these
sanitary and waterproof elements with other material or materials.
A majority of thle manufacturers in the Industry perform both of
these functions, but there are some whose operations are limited
entirely to that of converting or assembling.
The submitting Association represents 64 percent of the industry
byr' membership and 75 percent of the industry by volume of business.
There are appropriately 2,500 employees in the Industry today,
roughly f20 percent more than were employed in the Indc~ust~ry on
August 1st of last year.
IALBOR PROVISIONS-POISSIBLE REElfPLOYMIENT
Hoau~rs.-According to figures supplied by the A~ssociation, approxi-
mately 88 percent of thre total number of employees in the Industry
in July of 1929 were working in excess of 48 hours per week; and
approximately 80 percent of the total number of employees were
employed upon a basis of 48 or more hours per wreek during the early
months of 1933. This may be regarded as the typical work week o~f
the Industry. Te4horekprovided in the Codle as approved
will necessitate the employmnentofpromaey0prenadi
tional employees in the Industry.
WFages.--Wide variations in the wage scale have existed throughout
the Industry in th past. Wages as low as 200 per hour were paid
in July 1929 with 92 percent of the total number of employees work-
in in plants where thle minimum rate of payg was from 200 to 2541
per hour. During thbe first six months of 1933, 81 percent of the
total employees were engaged, in plants where minimum rates of
from 114 to 250 per hour prevailed. Although the total increase in
payrolls which this Code will require cannot Ibe accurately estimated,
It Is safe to atssue thmat the 35$ minimum rate established. represents
on the average a 40 percent increase in the minimum rates of pay for
firms employing 81 percent of the total employees in the Industry.
Homne wor.-Whil home work hias not been. used extensively in1
recent years it has been utilizedi to some extent. Its elimination
will makhe possible the effective enforcement of the Ltabor provisions
of the Code.
RESUMrE OF THE CODE
Article I gives the purpose, of the Code.
Artticle II sets fourth certain definitions.
Article III contains a maximum hour provision of the Code.
Article IV establishes a minimumn wage for all employees of the
Article! V~ set fort the general labor provisions.
Article VI: provides the general organization of the Code Author-
ity, and defines its powers.
Article VII defines Trade P~ractices which are unfair and shall be
Artcle V'III provides for the modification of the Code inl accord-
anc with Section 10O (b) of the ~National Recovery Act.
Article IX~ states that this Code hall not permit monopolies.
Article X provides for the elimination of homie workf.
Article XI specifies the effective date.
The Dep~uty Administrator inr his final report to me on, said Code
having found as herein set forth and on the basis of all the proceed-
ing~s in this matter;
I findl that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commllr~~ er which, tendt to diminish the amount the~reo-f and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action~ among h rd
groups,~ by including and mnaintalining united action of lbor anrdth r
manrlagcemenllt under adequate governmental sanctions and supervi-
exons, byr ellilminatingc unfair competitive practice, by pr~omoti ~gr the
fulles~t. poiblelt utilization of the pr~esenlt prodlc~t~ion capacity of
Industries, by avoicliing undulie restrictions n of production- (except as
mayl\ be temporarily requilcred), by inclreas4ing the consumption of
indstidan aric.lltur~al products through increasing purcthasinga
power, by r~edlucing anid relieving unemployment, by improving
standards of labor, andl by otherwise rehabilitating industry.
(b) Saidl indulstr~y normally employs nlot more1' than r~.10.00 em-
playeec~s; andl is nott c~laifi dcc by mle as a major indubtryg .
(c) The C'ode as approved complies in all respects with the
per~tinent provisions of said Title of said Act, including without
limnitationl Scubsect~ion (a) of Section 3, Sjubsection (a) of Section 7,
alndl Subsec~tion (b) of Section 10 th~ereof; and that the ap~plicant
association is an industrial asscc.intionl truly r~epl~resentatie of thie
afor~essih indu11Stry; and that said assciation> I impo e~cs no inequitable
restric~tionsrl on admrission to mIlemblul~t l~lp ther~ein.
(d) The ('ode is not designed~ to and will not permit monopolies
or monopolisctic practices.
(e) The ('odec is not dlesignled to, and will not elimninate or oppre~s
hrmall E~lenterrise s anX will not operate to dlicriminuill~te against, thnem.
(f) Trhose engaged in o~therl steps, of the economic process have not
beeln deprivedl of the right to be heard prior to app~Irovail of said
F'or these reasons the Code ha~s be(en. apprloved~.
Rtes pect fulIly,
Hocalr S. Jo-NwsoN,
A dminis tratr ~.
MARCH 1'7, 1934.
CODE OF FAIRE COMPETITION FOR TH E SANITARY AND
WATERPROOF SPEC1IALTI ESj MAN \'U FACTUZ:R ING INIS-
TCo effectuate th policies of Ttle I: of the lNational Industrial
Recovery Act, the followringr provisions are estab~lishedl as a Colle of
Fair Competition for thle Sanitary and W~aterproojf Specialties Al\an-
ufacturinlg Indlustry and shall be the standard~i of fair competition
for this industry and shall be binding on every members thereof.
ARTICLE II TEFINITIONS
1I. The term "' industry as used herein includess the manufacture
of waterproof crib sheets, baby pants, dress shields, women's andj
children's~ house~holdl aprons, womlen's sanitary lingerie and related~
prodhe~ts; and3 the manufacture of the rubber, rulbbe~rized, or stoc~k-
inette materials whlich constitu~tes the waterproof elements of these
articles by anyT manufacturer of the above mentioned products
whether for use in such mlanufact urer's own finished products or for
sale to another manufacturer of suchi finished products.
2. The termn emlployees "" as used herein includes anyone engagred2
in the industry in any capacity receiving compensation for his
services, irrespective of th~e nature or m~ethodl of payment of such
3. The term ~" emp~loy~er ") as uised herein includes anyone for -whose
benefit or on whlose business such emplloyee Is engagedl and anyone
engaged in said industry on hlis own behalf.
4. The terml "L memBber of the industry '" includes anyone engaged in
the indu~stry as d~efinedl, either as anI emp~loyer or on hiis own behalf.
5. T~he terms11 "Alc~t ", andl "Adminislurtrator as used hlerein shall
mean, r~e-pectively,, Title I of thle National Industrial Reccovery Act,
and thc Admluinistr~ator for Industr~ial Recovery.
1. N'o employees. shall be pcrm~itted to work in excess of forty (0
hours in any one week, xcepclt as hereinafter provided.
2. Each employee may be pecrmitted to work a maximum of sev-
enty-eigiht (r8) hours in each calendar year in excess of the forty
(40) houiirs npr weekP pi~rovided for in thep foregoingr secion; provided
that in no event shall any employee be permitted to work more than
eight (8i) additional hours in any one week, and provided further
that all hours worked in exPcess of forty (410) hours inr any one
week by any employee shall be paid for at the rate orf one andi one-
third times the regular weekly or piece-workr rate.
3. The provisions of this Article shall not apply to employees en-
gaged in an executive or supervisory capacity> earning thirty-five
($35.00) dollars per week or more; nor to outside salesmen.
4. No office employee shall be permitted to wPorkI in excess of
forty (40) hours per week averag~ed over a period of a month, nor
more than forty-eight (48) hours in any one (1,) week.
5. Stock clerks, shipping clerks, and outside crews shall not be
permitted to work in excess of fortyr-four (44) hours in any onae
6. Enginee~trs firemlen, r~epa~ir shop crew~s, electricians and wcPatch-
men1 shall not be permitted to work in excess of forty-eight (48)
hours per week.
7. No member of the Industry shall knowingly- engage azny em-
ployee for any time which, when totaled with, that already per-
formned with another member or members of thne Industry, esxceed~s
the maximum permnit~ted herein.
1. No employee shall be paid at less than the rate of thirty-fiv~e
(354~) cents per hour, except as here~inafter provided.
2. This Article establishes a minimum rate of pay, regard lss of
whether an employee is compensated on a time rate, piece r'ate, orr
3. No apprentice shall be~ paid less than at the rate of twcenty-
eight (284)~ cents per hour for the first six weeks of emnploymeint
and thereafter not less than at the minimum rate provided in Sec-
tion I of this Article?. Any time worked by an apprentice shall be
deemed a part of such apprenticeship period, whethercl such time is
worked continuously or at more than one job or for more than
one employer. In no case shall the total number of aIpprentices in
the employ of any one employer exceedrl five (5%/) p~er~cent of thle
total number of employees.
4. A person whose earning capacity is limited been use~r of age,
physical or mental handicap, or other infirm~ity, mnay be! employed
on light work at a wage below Pthe minimum establishedl by a Code,
if the employer obtains from the state authority, d-esignated by the
United States D~epartment of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall
be stated in the certificate. Such authority shall be guided by th~e
instructions of the United States Department of Labor in issuing
certificates to such persons. Each emnployrer shall file monthly with
the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximum hours of wtork for
5. No emnployer shall reduce the weekly rate of compensation for
any employee, in effect as of July 1, 1933, whether heretofore paid
on, a monthly weekly, daily, hnourly or piece-ravte basis, notwith-
standing that the hours of such emnp oyee have been reduced by the
provisions of this Code. This provision shall not be construed to
mI~ean that employees employed on a part-time basis shall receive the
same wa7eekly compensation as full time employees, nor shall it apply
ARTICLE V--GENERAL LABOR PROVJISIONS
1. Nio person under sixteen (16) years of age shall be employed
in the industry nor anyone und~er eighteen (18) years of age at
operations or occupations huzalrdous; in nature or det~rimerntal to
health. The Code Auithlority shaill suibmit to the Admninlistrator be-
fore May `1, 1934, a list of such] occupations. In. any State an em-
ployer shall be deemed to have c~ompilied w~ith this provision if he
shall have on file a certificate or permit dully issuedl by the auhllority
in such State empow~eredl to issue emiploymnttil or age certificates or
permits, showing that the employees is of the requil~re age.
2. Employees shall hiave the right. to organize anid bargain collec-
tively through r~eprlesenltatives of their own ch~oosinlg, andl shall be
free fromt thle interference, restraint, or coereson of emnployers of
labor, or t~heir agents, in the de ignation of suchn re~presentative s or in
self-organizatioon or in other concerted activities for the purpose of
collective bargaining or other m1utulll aid or protection.
3. No employee aInd no onle seeking employment sha~ll be req-uire
as a condlitio~n of employmnentt to join a~n~y comipan y uniion or to
re ramn rom joining. organizing, or a~ssisting a, labor organization
of his own chloosinlg.
4. Employers shall complyy wit the maximium hours of labor,
minimum rates of pay, and other conditions of employlent, ap-
proved or prescribed by the President.
5. Within each State this Code sh~all not surper~sede any~ laws
of sulch State imposn-ing mor0e stringent requirements onl emplloyers
reg~ulat~ing the age of employees, wages, hours of wor~k or health,
fire, or general working c~ondlitions than under this CodeI.
6. Female emiployees performiiing subst aInt ial th same work as
male employees shiall receive thle same rate of pa s thie miale
7. Employers shll~l not reclassify em~ployees or duties of occu
pations: performled by employees or engage in any3 sulbter~fuge~ so as
to defeat the purpose of the Act or of this Code.
8. Each employers shall post in conlspicuouss plalces accessible to
employees copies of Articles III, IV', V andi X of th~is Cod~e.
AHRTIC.LE VTI ADMZI N STRATION
To further effectuate the policies of the Act, a Code Authority
is hereby constituted to cooperate. with the Admlinistrator in the
administration of thiis Code.
1. ORGANIZATIONS AND CONSTITUTIONS OF THE CODE AUTH~ORITY
(a) The Clode Authority shall consist of not less than five (5)
nor more than eight (8) member~s. Five of: these members shall
be elected in the folIlowfing manner: The Sanitary and Waterproof
Specialties M~anufacturing Association shall call a meeting of all
members of the industry not later than two (f2) weeks after the
effective date of this Code at which meeting all members of the
Industry present who have complied with the provisions of Section 2
of this Article mlay vote for the five (5) members hereinabove
mentioned to comprise the Code Authority for this Industry. In
addition thereto the Administraltor may appoint three (3) members
wCithout vote and without expense to the Industry to represent the
~National Recovery Administration. Such members appointed by the
Administrator shall be given. notice of and may sit in all meetings
of the Codec Authority.,
(b) Each trade or industrial association directly or indirectly
participating in the selection or activities of thte Code Aeuthority
(1) Impose no inequitable restrictions on membership, and (2)
submit to the A~dministrator true copies of its Articles of Associa-
tion, By-Laws, regulations, and any amnendmrents, when made thereto,
together with such other information as to membership, organr-
ization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
(c) In order that the Code Authority shall at all times be truly
representative of the industry and in. other respects complyr with
the provisions of the Act, the Administrator maypoiesc
hearings as hne mayT deem proper; and thereafter i esalfn
that the Code Authority is not truly representative or does not
in other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
(d) The Administrator shall entertain complaints and provide
such hearings as he may deem proper for those claiming the right
to be represented on the Code Authority, and shall have the right
from time to time to change thne method of selection and the organ-
ization selecting thle m~emlbers of the Code ~Authority, in order that it
shall be truly representative of the industry.
(e) If the Administrator shall determine that any action of thre
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public interest the Administrator may require that
such action be suspended t ford an opportunity for investigation
of the merits of such action and further consideration by such
code authority or agency pending final action which shall not be
effective unless the Administrator approves or unless he shall fail
to disapprove after thirty day-s' notice to him. of intentions to pro-
ceed with such action in its original or modified form.,
2. Members of the industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority by assenting
to and comnply~ingr with the requirements of this Code and sustainling
their reasonable share of the expenses of its administration. The
reasonable share of the expense of the administration shall be deter-
mined by the Code Authority, subject to review by the Admninistra-
tor, on the basis of volumne of business and/or such other factors as
mlay be deemed equitable to be taken into consideration.
3. The Code Authority shall have the following duties alnd ~powers
to the extent permitted by the Act:
(aL) To elect officers and to assign to them such duties as it may
consider advisable, and to provide rules for its procedure, for the
selection of its members, and its continuance as th~e administrative
agency of this Code, in accordance with the terms of the Atlct and the
principles hlerein set forth.
(b) To receive. invest~igate. alnd ad~julstf comnplininth of violntfions of
this Code, and baSed upocn such inlvestigatio nl andr after sucrh hea;l'~rin
as it may deemn proper, to mlake Irecommelnn dationsl~ inl Irespect' therlet)
to thie proper aulthorities for thie prolseution of isuchi viola~tionrs.Th
application of this sectionl shall at all times be subject to rule~ andj
r~egulations issuedl by the Admninist~rator.
(c) To obtain through I a conftidential ag enicy from Iinrnh~t:-r of thie
industry periodical r~epor~ts in SuchI formI1 ulnd at sic~h time(' wiith re-
Fpec~t to wag~es. hlours of labor, cor-nditionls of' emp11loyment'll. nmoh11:er' of
employees, and suichl olthler matterI pet-''inentl to thie Inn-posest'~ of fthis
C'odle u thle Colie Authority, w~ithr the winw~rc, l o~f ;lhe Ah.ni.--ri~ trtr,
may1 requcir~e for the admlinzistra~tion and :1 nfo rl eet o(ICCII'I
times as~ he m1ay requlii~r in o~rderI that the Pres~idenit ma;y be in foiirmed
as to the observa-nce or Icnonabservan rce of this C'cdet andlr to furith~er
effectua~te thle policies of the Arct. Thle co~cnfiden~ltial agency.! .-hall1 be
in no wayS eng~aged in thle industry nori conniiec~ted with an1y mlember
t.hereof, and all recports r~ec~eivedl by~ it shall be helld us~ secret~ and co~n-
fidential, exrcep~t thlat they! shall bein~lacte available~ to the Admlninistr~a-
tor. Such agency ishll analyze. dige~t-alnd co~nsolianrte suclh repocrtsj
and shall disclose only general finllings basedl ther~eon. Such gen
eral finldings shall be made available to thle Code Antholcrityv and -;uch't
members of the industry as have assenlted to this Codel.
(d) To us such trande ascsociations and(' other arenlc.ies~ as it d~eemrs
proper for the enrryingnr out of anyoit tite pvidfr
hlerein. and to pay suh agn~rcies; th o ist cthereofi provided that
such agencies shall at all t~imes be subj~c~t to an1d compy1~1 w'ithl the
provisions of thiis Codle. and prov"idedt fur~ther, tha~t nolthilng herein
shall relieve thre C'ode Authority of anyl of its dulties and~1 re~sponclli-
(e.) To coordinate the admninistrationn of thiis rolle w\ith such
ot~her codes. if any, as may be rei~ntedl to the Sanitary and W~ater-
proof Sp~eciatie.- Mannufacturin gr Indus~try or atny subd \ivisin there-
of. w~ithl a view to promotmgl joint all Ind harmoni~l~a ntion upon
matters of common interest.
(f ) To mIakIe recmm ne ndla t ions for fair-t r d e pra;cticesl and othercl-
w-ise to assist the Admlninistl~torat inr efecting the purpose(I;: of thlis Corde
and the Act. Anly sic~h recommendnationl uipon thle aIpproval of the
Administrato~r afterl such hearing andl noctice las he shalll pre~sc~ribe,
sihall become a part of this Code.
(g~) Tor provide~ fori a sp~ecial N.R.A1. insignia for the indusitry
and to, cooperate with the A~dministratorlr inl regulnting~ the use of
.suchl in~signia ?;olely by those emprlloyers w~ho have n( ;1nltedt to and~
are complying with this Code.
(h) To procvidet waysv andi nienns forr financing theI opwrationl of
said Codle Auth~ority andl to de~termiine an equitable methodiir of appor?0-
tronmy~ in thle industry thle cost of ad~mmistering thiis Cod~e. Mlncey
raised in any manner shall not excpeed in nmount. such1 reasocnable
(i) To cause to be formula~ted~ an ncounltingu systernl andi methodl s
of cos~t findinrr and for estimating* rcapable of ulec by all members of
the industry. After such systemi and mcethodl s have beenr formullated,
full details c~oncerning theml shall be made available to all members.
Thereafter all members shall determine and/or estimate costs in.
accordance with the principles of such methods. The application
of this provision shall be subject to the approval of the Admin-
4. In addition to the information required to be submitted to the
Code Authority, all members of the industry shall furnish such addi-
tional information as the Administrator may deem necessary for the
purposes recited in Section 3 (a) of the Act to such federal anzd state
agencies as the Administrator mnay designate. NJothing in this Code
shall relieve any one of any existing obligation to furnish reports
to government agencies.
ARTCLE,~i[ 71-'IRADE PRACTICES
1. Customers shall be classified as follows: (a) Wholesale mer-
chants; (b) Retail Merchants purchasn ietfo h au
facturer; (c) Ch~ain stores; (d) M3ai or~dge r~c houes (he) Manufa-
turer's Sales agents. T'he Code Authority mnay from time to time
modify, amplify~ and/or define the foregoing customer classificattions
subject to the right of approval by the Administrator.
2. Any member of the Industry who markets any or all of his
products through sales agencies or commission men and who retains
ttle to such products, shall makre it a, condition that such sales
agencies or commission mlen agree to be bound by~ and comply with
all trade practice provisions of this Code to te same extent as
applies to and is required of a member of the industry.
3. (at) Each member of thfe Industry shall publish a schedule of
its prices and terms of sale on all standard products manufactured
and sold by it to each of the classes of customers as enumerated in
Section. I. Each published schedule shall contain the statement
that the prices therein are subject to change without notice.
(b) Immediately upon the adoption of a new schedule of prices
each member of the industry shall file such new schedule with, the
Secretary of the Code Authority-. All information, in such price
lists shall be made available to members of the industry, and upon.
request the Secretary- shall furnish price information to any member
of the industry and/or shall supply to any purchaser of products
of this industry price information relative to the customer classifica-
tion to which such purchaser belongs.
(c) All prices an~d terms of sale in such price schedule shall be-
come effective on the day of announcement and all shipments shall
be billed at prices in effect on date of shipment, except as herei~n-
When any member of the Industry announces a, new price sched-
ule showing increased prices, such, member may invoice in accord-
ance with the previous price schedule, any unfilled orders or por-
tions thereof taken prior to the date of such. announcement and which
are shipped within fifteen (15) calendar days after the date of th~e
announcement of the ne~wprice schedule. If at the end of the fifteen
(15) calendar days the member of the Industry shall have on hand
any remaining unfilled orders or portion thereof which were taken
prior to the date of such announcement, such member shall givPe each
purchaser the option of cancelling such unfilled order or portion
thereof or of acceptingR shipment to be invoiced in accordlance with
the price schedule in effect on date of such shipmlent.
This provision shall not a.pply to orders accepted by any mem.lber
of the Industr~y prior to t~he ef~fective date of this Code.
4. Each member of the indlustry shall furnish thle Code Autholl(rity
wRit h a list shiowinga points of origin of goodls man ufacturedcr by it
and any andi all cities and towns to whlich tranisportation charges,
or any part thereof, are allowed.
i. Termsli of sale onl all merchlandlise shall .not, exceedl cash dlis-
count of twfo (2%)~c per cent te days E.O.Mi. Invoies rendler~ed
for goods shipped on. and after the twentyit-fifth (25th) day of
each month mnay bear the date of the first day in. the following
month, but nlo other tanting shall be allowed except as9 hereinaftr
6. (a) Holiday gtoods may be shippedl to customers in Cla~sss
" (b) andt- (c) "', as d~efined in Para~r~aph 1, at the conveniec~ee
of the member of the industry and not mo~re than thir~ty (30) tlnv\s'
dating givenl, provided that such extra dating shall no;t makre ihe
discount date fall later than January 10 of the. following year; an-
ticipation may be nilowed at a rate not to exceed lone-hnalf of o~ne
per cent monthly, but such datings shall be confined~ xcsclusively
to holiday goods.
(b) Holiday goods may be shipp~ed~ to cuistomer~s in Classes "(a)"!
and "(d)," as definled in Paragraph 1, at the convenience of the
mlember' of thle Indunstr and not mocre than sixty (60) day\s' dlutinrg
giveni, provided that sulCh1 extra. dating shall not. makre the discount
date fa.11 later than. January 10 of thec follow\iwtr year; anticipation
mlay be allowed at. a, rate not to exc~eedt one-half ofone p~er~cent monthfJ-
ly, but such dating shall be confined exclusively to holiday goods. The
term Hoiday Gools,") as used hereinabove, is definedl to include
any merchandise especially packe~d for the Chlristmans trade aInd
intended to be sold for Christmias gifts. and having special conitainers
or other designatiol appr'opriate to Christmas. All other met--
chandise is definitelyS excludedl fromi the special terms prov\idled in
7~. All shipmients of goods shall be madre andc~ invoices reinderied
at pricess andl terms a~s shownl on current s~~cheule of prices, andi such
invoices shall accurately show quanitities. brands, numbers or other
identifying description in accordance w~ithi published price list.
8. (a) No member o~f the industry shall give to any customer
any special prices, allowances, rebates direct or indirect., or conces-
sions of any kind not shown on such member's published pric list.
(b) N'o member of the industry shall give to any customer any
rebate or allowance of any kind on any merchandise beenuise of a
decline in price after shipment has been made.
9. No member of the industry shall give, permit to be given? or
offer to grive? anything of value for th~e purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent, or the represented bocdy w~itho~ut the
knowledge of such employer, principal or party. Commercial brib-
ery provisions shall not be construed to prohibit a, general dihtribu-
tion of articles commonly used for advertising except so far as such
articles as actually used for commercial briberyg as hereinabove
10. No member of the Industry shall accept the return of any
article for credit or exchange which is subject to the provisions of
this Code, except on account of defects in material or workmnanship,
provided, however, that articles returned on account of errors in
shipment, delay in delivery, or failure to conform to the order may
be accepted if returned within ten (10) days from the date of receipt
by the customer.
11. NTo mremnber of the Industry shall ship any merchandise onl
consignment, memoranda or guaranteed sale.
12. No member of the Industry shall by purchase or exchange, or in
any manner whatsoever, acquire m~erchandise produced and/or sold by
another member of the Industry from any customer for the purpose
of effecting or in any manner influencing the sale of m~erchandise
to such customer.
13. No member of the Industry shall sell any article, subject to
the provisions of this Code, at a price below his individual cost.
However, any member may meet the price competition of any com-
petitor whose cost under this Code is lower. Cost for the purposes
of this provision shall be determined in accordance with the uniform
cost and accounting system provided for in Article VI, Section 3,
sub-section (i) hereof, when such system is recommended by the
Code Authority and approved byT the Administrator.
14. The sale and/or delivery of distressed merchandise, discon-
tinued styles, salesmzen's samples, and all similar merchandise shall
be confined to twro periods during the year, viz: one period from
December 15 to January 31, and another period from July 20 to
~August 20 of each year, provided, however, that upon application
to the Code Authority a member of the Industry may upon showing
that such sale wcPill not result in unfair competition obtain permission
to dispose of merchandise covered by this provision at other periods
than those Iherein provided, and upon such reasonable terms and
conditions as the Code ASuthority m~ay impose. 1Merchandise sold
in accordance with this provision. shall be exempt from the provi-
sions of Section 13. Any action. taken by the Code Authority under
this provision shall be subject to review~ byr the Administrator.
15. Seconds and faulty or defective merchandise falling below the
Member of thne Industry s standard for regular god hl b lil
and uniformnly marked with the designation "irregular or re-
ject ". The Code Authority may from time to time impose reason-
able terms and conditions governing the sale of merchandise of this
class, subject to approval by the Administrator; and unless and until
these terms and conditions otherwise provide, such merchandise
shall be exempt from the provisions of Section 13.
16. No extra discount shall be allowed on merchandise supplied
to wholesale merchants for use as samples.
17. No member of the industry shall cause, or knowingly permit
any person mn its emnployr, or receiving from it any compensation
mn anyT manner whatsoever, to seek: or obtain employment wi~th a
competitor for the purpose of acquiring knowledge concerning the
trade secrets, or other similar confidential information relating to
the competitor's business.
18. No member of the industry shall publish aldverti~simlr whetherr
printed, radio, display or of any other nature), which is Insleladingt
or accurate in any material particular, nor shall any memrlber
mn any wa~y misrepresent any goods includingg bult without limlitation
its use, trade mark, grade, quality, quantity, origin. size, substance,
character, nature, finish, material, content or preparation) or credit
terms, values, policies, sernees, or thle nature! or' formll of lthe bu ines~s
con ducted .
19. No membrin of thle indus~try shlnl kniowingly withhol~ld fromll or
mnsert mn any quotation or Invoic~e anly tateme~nt that mlatke it in-
accurate in any material particular.
20. N'o memlber of thle Indlustry chall br-and o markrl or pauck
any goods in any nganner which is intewledl to or co--- dce~c~ ive or
misleadl pfart-hlsers with respect to the brand, grade,1' qualility', qulnl-
tityv, origmi. size: sulbstance, charaI'Cter', naturle. tinsh mte~iall
content or preparation of such goods.
21. On andt after thle e~ffetive dlate of thiis Codle no mlember~ of the
Industry shalll use emlployee~s in the capacity of dlemonstrf~ators and/lor
missionary salesmen subject to the following exceptions and
(a) No member of t~he Indluhtryv shall in any manner increase the
present number of demlonstrator s andl/or mnisisionary~ salesmen.ll
(b) Eachl member of the Indlustry shall file with thei Cod~e A~u-
thority~ a list of all plriesent dlemonstr~ator and1/or missionar-y salesmen
together w~ithl information as to their location.
(c) This list shall specify thle time on. or before which each sucht
demonstrator anl/'or missionaryg salesman will be dlisc~ontinuedl.
(d) All dlemonsi~it rators a7nd all mlissionar~y salesmec n ar1e to b~e d:is-
continuled on or before June 30, 1934.
(e Te ivngoralowngof' .M~.s "- or anly other1 fo~rmls of co-n-
cessions whatsoever to sales perlsons in retail places of business s is
The application of this prov'isionl shall be stayedl for a p~eriodl of
thirty days from the effective date of this Code. T he A dmni n ist ra tor,
after such notice and hearing as he shall prescribe, may? grant, to
any mlember of the Indusitry. making appti~cation therlefol r within
this period, suich exempition fromt or eicept~ion to this provision as
the facts presented mayv justify.
22. Any member of the Industry may bulild up his prices applicable
to customiersr in class (b) on merc~handise subject to the provisions
of this Codle_ ton permit the gra nting of a tradle discount. ml addition
to the cash discount established in Section 5, provided tatpricabe
lists showiing such built up prices and the trade dsonsapial
thereto are prepared and published in the reulfar manner, and fur-
ther provided that the sale of merchandise at such buiilt up prices
shall be confined to Corset Departmlents.
AnnC'Ex VIII[-MnODIFICATIO N
1. This Code and all the provisions thereof are expressly made
subject to the right of the Presidlent, in accordance w~ith thle provi-
sions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or mlodify any order, ap-
UNIVERSITY OF FLORIDA
182 3 1262 08852 5489
proval, license, rule or regulation issued under Title I of said Act.
2. This Code, except as to provisions, required by the Act, nuty be:
modified on the basis of experience or change in circumstances, such
modification. to be based upon application to the Administrator by
the Code Aiuthority atnd such notice of hearing as he shall specify,
and to become effective on approval of the President.
No provision of this Code shall be so applied as to permit mono-p-
cllies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.
No home work shall be permitted by employers ninety (90) days
after the effective date of this Code.
ARTICLE XI -EiFFCIVE DATE
This Code shall become effective on the second Mlonday after its
Approved Code No. 342.
Registry No. 899--1-4)1.