For sale by the Superintendent of Documents. W'ashington, D.C. - Frice 5 cents
Approved Code No. 84-Supplement No. 22
Registry No. 1114--22
i kht~ikAT: RECOVERY ADMINISTRATION
UIVEI OSF FL_ L'T.
GOVERNMENT PRINTING OFFICE
CODE: OF FAIR COMPETITION
'"DRAPERY AND CARPET
(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and M~etal Coating Industry)
AS APPROVED ON MIAY 9, 1934
This publication is for sale by the Superintendent of Documents, Government
Printing Offce, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestle Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingrham, Ala.: 257 Federal Building.
Boston, RIkss.: 18j01 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 170i6, 201 North WI~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas. Tex.; Chamber of Commerce Building.
Detroit, MIichl.: 801 Firsyt National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indlianapolis, Ind.: Chamber of Commerce Building.
Jacksonville~. Fla.: Chamiber of Commerce Building.
Kannsas Cityl, 1\o.: 1028 Baltimore Av~enue.
Los Angeles, Callif.: 1163 South Broadway.
Louisville, Kyi.: 408 Fedleral Building.
n~Iemphis,; Tenn.: 229 Federal Building.
Alinneapolis, hlinn.: 213 Federal Building.
New~ Orlea~ns. La.: Room 225-A, Custombo~use.
New York, N.Y. : 7i34 Customhouse.
Nor~folk, Van.: 4106 East Plume Street.
Philalelp;hin, Pa.: 4272 Commercial Trust Building.
Pittsburgh. Pa.: Chamber of Commerce Building.
Portlanld. Oreg.: 215 New Post Offic~e Building.
St. Louis, nlo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wasuh.: 809 Federal Offc~e Building.
Approved Ccde No. 84---Supplement No. 22
SUPPLElMENTARY CODE OF ]FAZIR COMPETITION
DRAPERY CAND CARPET H[AIRDWARE
MAN UFACTURING INDUSTRY
As Approved on May 9, 1934
ASPRrnovxNo SUPPLEMENTARY CODE OF FAIR COMPETITION FOR TH~E
DRAPERY AlND CARPET HARDWABRE P6ANUFACTURING INDUSTRY
A DIVISION OF THE FAB~RICA~TED 31ETALr PRODUCTS 31ANUFACLTURINGI
AND META~L FINISHING AND METAL, COA~TING INDUSTRY
An application having been duly mnad~e pursuant to and in full
compliance with the provisions of TIitle I of the National Induxstrial
Recovery Act, approved June 16, 1933, and in accordance with the/
provisions of Section I of Article VI of the B1asic Code for thie F~ab-
ricated M~et~al Products MIanufacturin~g and M~etal Finishing and
Metal Coating Industry, approved November 2, 19333, for approval of
a Supplementary Code of Fair Comnpetition for the Dr1apery and
Carpet Har~dware M~anufacturinng Industry, and hearing having been
dully held thereon; and the annexed report on said Supplem~entary
Code, containing findings with respect th~ereto, having been made
and directed to the President:
NOW,. THEREFORE, on behalf of the President, of the United
States, I, Hugrh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in mie by Executive Orders of the Presi-
dtent, including Execut~ive Order No. 654~3-A~, dated D~ecember 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Supplementary Code complies
in 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 Supplementary Code of Fiair Competition be and .it is
hereby approved; provided, however, th~at the provisions of Article
V, Section 1, insofar as they prescribe a waiting period between the
filing with the Code Authority (or such agency as may be designated
in the Code) and th~e effective date of price Ijists, as originally filed
and 'or revised price lists or revisedl terms anld condlitiojns of sale,
be and they hereby are stayed pending my further Order.
HUGH-r S. JOHNSONu,
Adm7lini~st'lErato for Inducstrial: Recover~y.
Approval Recommended :
A. R. Gr~aNcr,
57801" 544-49 -34 (1)
REPORT TO THE PRESIDENT
The Wthite HTouse.
SIR: This is a report on the Suapplement~ary Code of Fair Compe-
tition for the Drapery And Carpet Hardware M~anufacturing Indus-
try, a division of the Fabricated Mietal Product~s Mlanufacturing and
Metal Finishing and M~etal Coating Industry, the hearing having
been conducted thereon in Washington, D.C., Ja~nuary 19, 1934, in
accordance with the provisions of Title I of the National Industrial
The Drapery And Carpet Hardware M~anufacturing Industry,
being truly representative of this division of the Fabricated Metal
Pmdrduts Ma~nulfacturinngnd Meptal Fi;nishing and M~etal Coating
Industry, has elected to avail itself of the option of submiitting a
Supplementary Code of Fair Competition, as provided for in Section
1 of Article VI: of the Basic Code, for the Febricatedl Metal Products
Mla~n ufacturing andi Metal Finishing and Mletal Coatings Industry
approved by you on the second day of November, 1933.
Risannd OF THE CODE
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Supple-
Article III. This Industry is a division of the Fatbricated Metal
Products Mlanufacturing and MIetal Finishing and M~etal Coating
Industry and th~e labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a Supplementary Codle Authority consisting
of seven (7) me~mber~s to be elected by the members of the Industry
at a, meeting called by t~he Temporary Supplementary Code Commit-
t~ee, and gives the Adlministrator the authority to appoint one addi-
tionail member without~ vote and provides machinery for obtaining
ELat-iSticS and the administration of the Supplementary Code.
Article: V provides for methods of setting up and revising price
Article VI provides for determining the lowest reasonable cost of
thle products of this Indlustry.
Article VII sets forth t~he unfair trade practices of this Supple-
mentary Codle which has been especially designed to offset unfair
comp7Ietition in this division of the Industry.
Article V'III p~rovides against monopolies and monopolistic
Article IX contains the mlandlatory provisions cont~ainedl in See-
tion 10 (b) andi also provides for the submission of proposed amend-
mlents to t~he Supplementary Code.
Article X recognizes tha~t price increases be limited to actual
addtitionlal increases in thle seller's costs.
Article XiI states thle effective dlate of this Suppltementary Code.
The Deputy Administrator in his ~final report to me on said SuIp-
plementary Codle having found as herein, set forth ande on. the basis
of all the proceedings in this matter:
I find that:
(a) Said Supplementary Code is well designed to promote the
policies andi purposes of Title I of the National Industrial ]Recoveryr
.Act., including removal of obstructions to the free flow of interstate
aznd for~eigan commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organi-
zat~ion of industry for the purpose of cooperative action among
the trande groups, by :indlucing and maintaining united action of
labor and management under adequate governmental sanctions and
supervision, b3y eliminating unfair competitive practices, by pro-
mot~ing the fullest possible utilization of the present productive ca-
pacityS of industries, by avoiding undue restrictions of production
(except as may be temporarily required), by increasing the con-
sumption of industrial and agricultural products through increasing
pu'rc~hasingi power, by reducing andt relieving unemployment, by im-
proving standardsl of labor, and by otherwise rehabilitating industry.
(b) Satidl Indust~ry normally employs not more than 50,000 em-
poees; and i~s not classified by me as a major industry.
(c~) The Supplementary Code as approved complies in all re-
sp~ects with the pertinent provisions of said Title: of said Act, in-
cludinlg without limitation Subsection (a) of Section 3, Subsection
(a) of Section 7, and Subsection (b) of Section 10 thereof; and that
the applicant group is an industrial group truly representative of
the aIforesaid Industry; and that said association imposes no inequi-
table restrictions on admission to membership therein.
(d) The Supplelmentary Code is not designed to and will not
permit mlonopolies or monopolistic practices.
(e) Thle Supplementary Code is not designed to and will not
elimninazte or oppress small enterprises and will not operate to dis-
crimninate against them.
(f) Those engaged in other steps of thie economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Supplementary
HUan S. JoHNSON,
M\aY 9, 1934.
SUPPLEMCIENTARY CODE OF FAIR COMPETITION FOR
THE DRAPERY AND CARPET HARDWARE MANUFAC-
a DIVISION OF THE FABRICATED METAL PRODUCTS MANUJFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY
ARTICLE I PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Drapery and Carpet
Hardare anufctuing ndusry.Pursuant to Article VI of the
Basic Code of Fair Comlpet~itionfothFbrcedMtlPdut
Manufacturing and M~etal Finishing and M~etal Coating Industry
approved by the President of the United States on the 2d day of
November, 1933, the provisions of this Supplementary Code shall be
the standard of fair competition for such I~ndustry and shall be
binding upon every member thereof.
SECTION 1. The terms "' President ", Act and "L Administrator ",
as used herein, shall mean the President of the Unit~ed States, the
National Industrial Recovery Act, and the Administrator for Indus-
trial Recovery under said Act.
SCECTION 2. The termn "L Industry and/,or "' Drapery and Carpet
Hardware Industry means and includes the business of manufac-
turing Drapery and,/or Carpet Hardware.
SECTION 3. "~ Drapery and C'arpet Hardware means and includes:
(a) Draperyr Hardware: All woodl, metal or glass devices, or
devices made of any other mlater~ial, ordinarily used to support dra-
peries at windows, dloorwFays or like spaces. These: devices are Rods
or Tubes, either of fixed length or adjustable, either stationary or
detachable from Branckets fastened to the wall at either end of the
Rod or Tube; or supported from one end only, so that they can
swing away' fr~om t~he window or door. Also the Hooks or BIrackets
to support. such Rods or Arms, and the Rings, Hooks, Pins and
Special Pins used to attach the: draperies to the Rods or Arms. Also
the Pulleys, Car~riers, Brackets, Tassels, and other devices used in
mioving t~he draperies to and fro, so as t~o either cover or disclose
the w~indow,\ or d~oor. A~lso such metal or other fixtures generally
known in the trade as Holdbacks, used to tie back the drapery
fabrics in onl arched arrangement. Also those special forms of
Hard-ware used by decorators and housewives to obtain particular
effects in the arrn;aingeent of draperies and recognized by them under
the classification of Dranpery~ Hardware.
(b) Carpet Hardware: All metal and wood pieces or pieces made
of any other material, or strips used to cover or protect from wear
the edges, seams or joints of linoleumn or other floor coverings.
Where linoleum or like material is used as a surface on desks or
display tables, the metal and wood strips and corners used to pro-
vide firm edges, are included in. the term Cnrp~et H~ardware". The
term also includes t~he metal plates or nosingrs, or plates or nosings
of any other mlater~ial, generally used on the treads of stair cases.
Also stair rods and fasteners, rug; fasteners and carpet pins and
SECTION -1. The term product means and includes Drapery
and,or Clarpet Ha~rdware as hereinl defined~.
SECTION 5. The term member of the Industry' means and
includes any person, firm, corporation or associntion operating a
plant. or pla.nts manulfacturirin Drapery and/or Carpet Hardware,
whether for its own use or for sale.
SECTION 6. The term member of the S!upplementaryr Code "
means any member of t~he Industryr who shall have assented to thre
provisions of this Suppnle~menn~tary C~ode by instrulment. in wr~itingr
duly filed with the Secretary.
SECTION 7I. The term employee as used herein includes anyone
enganged in the Indiust~ry in anyT capacity receiving compensation
for his services, irrespective of the nature or method of payment of
SECTION 8. The term "' em~ploy\er as used herein includes anyone
by whom any such employee is compensated or employed.
SECTION 9. The term "' Basic Code as used herein is defined to
mean the Basic Cod~e of Ftiair Competition for the F'abricated
Metal Produlcts Manrufacturing and 1Metal Finishing anrd Mtal
Coating Industry as approved by the President onl thme 2nd da~y of
SECTION 10. The terma Supplementary Code Aluthority as used
herein is defined to mean the agency which is to administer this
Supplementary~ Code as hereinafter provided.
SECTION 11. The term Bureau means Drapery and Carpet
Hardware Mlanufacturers' Bureau, or its sulccessor.
SECTION 12. The terma Executive Committee means Executive
Committee of Drapery and Carpet Hardware Manufacturers'
SECTION 13. The term Secretary means Secretary of D~raperyr
and Carpet 3Harrdware Mianufacturers' Bureau, or such other im~-
partial and confidential agency as the Supplementary Code Authority
ARTICLE III--EMPLOYM\ENT PROVISIONS
T-his Indust~ry is a division of the Fabricated Metal Products
Manufacturing and M~etal Finishing and M~etal Coatilng Indlustry
and t~he wage, hour and labor provisions ini A~rticle III: of its bas~ic.
code as approved by the Presidenlt November 2, 1933, includingg
Section 1 of said Article III by which the pr~ovilsons of Subsectionls
(1), (2)) and (3) of Section 1 (a) of Title I o fthe Act are mnade
conditions of this Clode, are specificallyr incorp~oratedl herein and mIade
a part hereof as the wage, hour and labor provisions of this
AnnICEr IV--ORGANIZATION AND An~INInLanABrlo
SECTION 1. During the period not to exceed sixty (60) days fol-
lowing the effective date, the Executikve Committee shall constitute
a Temporary Supplementary Code Aut~hority, who shall have all the
powers and duties of the Supplemnentary Code Authority, herein set
forth, until thle Supplemlentary Code Authorityv is elected. There
shall be constituted within the sixty-day period a Supplementary
Code Authority consisting of seven (7~) members to be elected by the
members of the Industry, at a meeting called by the temporary
Supplementary Clode Authority, upon ten day~s' notice sent by regis-
teredl mail to all members of the Industry whose names can be
ascer~tainled after diligent search., who may vote either in person
or by pr~oxy. The members of thle Supplemlentary~ Code Authority
first elected shall serve until the following annual meeting of the
Bureau and until their successors ar~e elected, and thereafter, mem-
bers of the Supp~lementary7. Code Authority shall be elected imumedi-
ately after each annual meeting of the Bureau to serve until their
successors are elected. Notice of each election shall be sent in the
manner above provided. The membership of the Supplemnentary
Code Authority shall be miade up as follows:
(a) Two (2) members who shall be members of the Industry
elected by a majority vote of the members of the Industry present
in pIer~son or represented by proxy, each member to have one vote;
(b) One (1) member wno is not a member of the Bureau elected
by a majority vote. of the non-members of t~he Bureau, present in
person or represented- by proxy, each members to have one vote;
(c) Four (4) members wht~o shall be members of the Bureau elected
by fifty-one percent. vote of members of the Bureau, present. in person
or represented by proxy, weighted on the basis of one vote for each
member and additional votes equal to the percentage which each such
member's dollar volume bears t~o the total dollar volume of the mem-
bers of the Bureau in the previous calendar year, reported to the
Secret ry. Provided, however, That. no one member miay have more
than 3.3 such votes and prov~ided,! further, that. the election shall be
so conducted that no memnber of the Bureau shall ascertain the vol-
ume of any other member -
(d) A vancancy in the membership of the Supplementary Code
Authority may be filled by majority vote of t~he remaining members
of thie Supplementary Codle Au~thority;
(e) In addition to the above the Administrator may appoint one
r~epresentative without vote and without expense to the Industry
unless th~e Supp~le~entary C'ode Authority agrees to pay such ex-
penses, to serve on saidl Supplemientary Code Auithority in the
administration of this Supplemnentary Code. Said representative
shall be given reasonable notice of all meetings of thle Supplementary
CoeatirSECTION 2. A~ny Association, Institute and *'or Bureau directly or
indirectly par'ticipating in the selection or activities of the: Supple-
mnentar~y Code Author~itv shall (1) impose no inequitable restrictions
on membership, and (2) submit to the Administrator true copies of
its Art~icles of Association, By-Law~s. Regulationsi andc any amendm-
mentss when made thereto, together w~ith such other information as
to membership, organization, and activities as thne Admlinistraitoro
may deem necessary to, effectuate the Imrposes of the Act.
SECTION 3. In order that the Sup~plementary Code Author~ity shall,
at all t.imles, be truly~ repl~r-esentati.e of the Indtustry and in other
respects comply with the provisions of the Act, the Administraltor
mlay prescribe such Hear~ings as he may de~em proper; and, there-
after, if he shall findl that the Supplemlenta ry Codle Authority is not
truly representative ;or does not in other respects comply with. the
provisions of the Act., mnay require nol appropriate modificationi in
the method of selection of t~he Supplenentar~y C~ode Autority.
SECTION 4. The Supprlemnentary Code .Authorityr is he~eb~y consti-
tuted the agency to administer th)e provisions of thlis Supplementary
Code and to collect and distribute all statistical reports of the Indus-
try. With a view t~o k-eeping t~he President inlformned as to the obsery-
ance or nonobservance of thisc Suplenl m entary Codep said~ agency Sfhall
collect through the Secr~etary such statistics as called for by the
President and/or th~e Administrator and send them in, such form as
the President and 'or t~he Admiinistrator may require to thEe Fabri-
cated Mlet~al 'Products Fedelration, or successor organization, as the
agaency administering said Basic. Code. All individual reports shall
be treated as confidential by thie Secr~efnry and shall not be disclosed
to a~ny member of the Industry or any other party except where neces-
sary in thle enlforcemlent of this Code and except to such grovernmlental
agencies as may be directed by the Administr~ator.
SECTION 5. The Supplemlentaryy -Code Authority as such agency.
shall also from ~timle to time furnish to th Basic Code At~uthority,
designated in said Basic Code, such information as may be req-uired
to be furnished undler the terms of said Basic Codle.
SECTION 6j. Thle Supplemlentary? Code Authority shall have power
from time to time to require each member of the ZIndustry. to furlnish
to the SCecretary such information as is required by the Administra-
tor, concerning the production, shipments, sales, andl orders of such
members andi the hours of Inlbor, rates of pay and other conditions
of emnploymlent at th~e plant or plants of such member and- such other
information as the Supplem~entary Code Authority shall dteem neces-
sar~y or proper in order to effectuante the purposes of this Code and,
t~he policy of the Alct. All1 individual reports shall be treated as
confidential by thle Secretary and shall not be disclosed to any mem-
ber of t~he Industry or any other party except where necessary in
the enforcement. of this Code and except to suich govecrnmnental agectn-
ciesi as may be directed by the Administrator.
SECTION Ti. The Supplelementary Code Author~ity may require that
any suchl information be furnished periodically at such1 times as it
shall specify, and mnay require that any or all information furnished
be swiorn to or otherwise certified or authenticated, as it shall pre-
scribe. Failure of any member of the Industry promp tly to furnish
to the S$ecretary information re rdby the said Suppiemnentary
Code Authtority and sulbSt~antially in the form prescribedl by it shall
constitute a violation of the Code.
SECTION 8. Any or all information furnished to the Secretary by
any corporate member of the Industry specifically assenting hereto
pursuant to the provisions of this Code shall be subject to verifica-
tion by an examination of the pertinent books, accounts and records
of such member by any accountant or accountants or other person
or persons dlesignated by the Supplementary Code Authority and
shall be so checked for such purpose if the Supplementary Code
Authority shall require it. The cost of each such examination shall
be treated as an expense of administering t~he Code.
SECTION 9. All members of the Industry are subject to the juris-
diction of the Supplementary Code Authorit~y; shall be entitled
to participate in and share the benefits of the Supplementary Code
Authority; shall be entitled to vote in the selection of the Supple-
mentnry Code Authority as provided in Sect~ion 1 of this Article;
and shall pay to the Secretary as the agent of the Supplementary
Code Authlority their reasonable share of the expenses of the Ad-
min~ijtration of this Supplementray Cod~eoe, such reasobl share to
be determined by the Supplementary Cd uhrtsbett
review by the Administrator on the basis of volume of business
and,'or such other factors as may be deemed equitable by the Supple-
mentary Code Authority.
SECTION 10. Nothinlg contained in this Supplementary Code shall
be deemed to constitute the member-s of the Supplementary Code
Authority~ partners for any purpose, wFhatsoever. Nor shall any
member of the Supplemnentary; Code Aut~hority be liable in any
manner to anyone for any act of any other member, offcer, agent
oremploee of the Supplementary~ Code Authorit~y. Nor shall any
membr o th Supleentry ode Auithority, exercising reason-
able diligence in the conduct of his duties hereunder, be liable to
anyone for any action or omission to act under this Code, except
for his own wilful misfeasance or non-feasance.
SECTION 11. The Supplementary Code Authority shall without
any limitation on the foregoing have the following further general
powers and duties subject to such rules and regulations as the
Administrator may prescribe:
(a) To insure the execution of the provisions of this Supple-
mentary Code and provide for the compliance of the Industry with
the provisions of the Act;
(b~) To adlopt by-laws and rules and regulations for its procedure
and for the administration of the Supplementary Code;
(c) To obtain from m-iembers of the Industry such information
and reports as are required for the administration of the Supple-
mentary Code. In addition to information required t~o be submitted
to the Supplementazry Code Aluthority, all or any of the persons
subject to this Supplementary Code shall furnish such statistical
information as the Administrator may deem necessary for the
purposes recitedl in section 3 (a) of the Act to such Federal and
State agencies as the Administrator may designate. Provided that
nothing in this *Supplementary Code shall relieve any member of the
Industry of any existinga obligations to furnish reports to any gov-
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Supplementary
Code Authority of its duties or responsibilities under this Supple-
mentary Clode and that such trade associations and agencies shall
at all times be subject to and comply with the provisions hereof ;
(e) To make recommnendations to the Administrator for the co-
ordination of t~he administration of this Supplemlent~aryI Codle with
such other Codes, if any, as may be relat.edl to t~he Induzstry;
(f) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of masintaining
the Supplementury Codle Authority and its activities;
(gr) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the IndustryS who
have assented to, andl a re compnlyingr with, this Supplementary Code;
(h) To recommends to the Admlninistr~ator fur~ther fair tradste prac-
tice provisions t~o govern members of the Industry in their relations
with each other or with other Indust~ries and to recommend to the
Administrator m~easures for industrial planning, including statbili-
zation of emiploymlent;
(i) To est~ablishl an impartial agency for the registration of origi-
nal designs, patterns or forms, andl to promiulgate and from time to
time amend rules and regulations for the registration thiereof, all
subject to the approval of the Adiministrator.
(j) To set up dlefinitionsi for the various classes of customers of
the Industry. WVhen such definitions are approved by the Adminis-
trator, quotations, prices, discount, credit terms, allowances or other
conditions of sale shall be madle on the basis of and with reference
to such definitions, and deviations th~erefrom shall constitute unfair
methods of competition and shall be deemed to be a violation of.
SECTION 1L2. If the Administratori believes thant any action of the
Supplemlentary C~ode Authority or any agency thereof is unfair
or unjust or c~ontrary to the public interest, the A~dministlatrato may
require that such~ action be suspended to afford an opportunity for
investigation of the merits of such action. Further action by such
Supplemlentary Code Authority or agency~ r~egarding the. matter
complained ofr may be taken if approved by the Admninistrator but
shall not be taken if disapp~roved by' the A~dministra~ttor within thirty
days of notice to him of intention to proceed withl such action.
ARTICLE YT-PRICE LIEss
SEcTIrON 1. The Su~pplementary~ C'ode Aut hority may require each
member of the Indlustryu who mnlluflc'turles and sells any plroluct, of
the Industry w~ithini ten (10) dlays a.fter. the effective date of this
Supplementary Code to file with t'he Secretary and publish duplicate
originals of all price lists, catalogues,! descr~iptive price lists andl
literature showing or pertaininga to~ prices and other. conditions of
sale, special discounts for various classes of customers or for quan-
tity, together with any trade policy affecting the net price of the
merchandise, in such numbers as may~ be r~equestedl by the Secretary
for distribution to the members of the Supplementary Code, anid in
such form as the Supplementary Code Authority may direct, showPing
in separate schedules such member's net price to, or d-iscount from
list allowed to such of the following classes of pilrchlasers as said
member sells or quotes: chain-stores, catalogue or mail-order houses,
jobbers, retailers and consumers. Said price list shall be made
available to all interested parties. Provided, however, that nothing
in this paragraph contained shall compel a, member of the Industry
to file a price list or price lists on any product of the Industry
manufactured and used by such manufacturer for the purpose of
making up other products not products of the Industry, or for
export as the term is defined in Article VII, Paragraph A, o~f this
Supplementary Code. The Secretary shall immediately send copies
thereof to all other members of the Supplementary Code and shall
make said price lists available to all interested parties. Provided
further that prices to chain-stores need not be filed but any member
of the Industry may do so if he desires. None of the price data so
filed as herein provided shall be changed except by the filingo with
the Secretary, by such member of the I~ndustry new price data
setting forth such change or changes which shall become effective
and be published on the effective date specified by such member of
the Industry which shall be ten (10) days after the date on which
such new price data shall have been filed with the Secretary, and
copies thereof with notice of the effective date specified shall be
immediately sent to all members of the Supplementary Code, who
thereupon may file if they so desire, to become effective upon the
date when the revised price data first filed shall go into effect, or at
a subsequent specified date, revisions of their price data, establishing
prices not more favorable t~o the purchaser than those established
in the revised price data first filed.l
SECTION 2. No member of the Industry shall make any sale or
quotation of any product of t~he Industry at prices or on conditions
more favorable to the purchaser thereof than those specified in the
price data so filed by such~ member in accordance with the provi-
sions of this Supplementary Code and in effect at the time of such
sale; nor shall any member of the Industry make any contract of
sale of any product of the Industry at prices or on conditions more
favorable to the purchaser thereof than those specified in theprc
data so filed as aforesaid and in effect at the tith~e of the makn
of such contract of sale. For all purposes of this Article a delivery
of any product made pursuant to a contract of sale shall be regarded
as a sale thereof made at the time of the making of such contract.
Aw~rrCLE VI--SALES BELOW REAsoNABLE COST
Notwithstandina any other provision s of this Sulnpmplmntar l Code,
when the Supplementary Code Authority determines that an emer-
gency exists in this Industry and that the cause thereof is destruc-
t~ive prie-culttijng such as to render ineffective or seriously endanger
the maintenance of the provisions of this Supplementary Code, the
Supplementary Code Authority may cause to be determined the
lowest reasonable cost of the products of this Industry, such deter-
mination to be subject to such notice and hearings as the Administra-
tor may require. The Administrator may approve, disapprove, or
modify the determination. Thereafter, duri-ng the period of the
a See paragraph 2 of order approving this Code.
emergency, it shall be an unfair trade practice for any member
of the Industry to sell or offer to sell any products of the Industry
for which the lowest reasonable cost has been determined at such
prices or upon such terms or conditions of sale t-hat the buyer will
pay less therefore than such lowest reasonable cost of such products.
Wh7en it appears that conditions have changed, the Supplementary
Code Author~ity, upon its own initiative or upon the request of any
interested party, shall cause the determination to be review19ed.
ARTICLE VI'I-UNFAIR TRA-DE PRACTICES
SECTION 1. For all purposes of this Supplement~ary Code the fol-
lowving described acts shall constitute unfair practices. Such. unfair
practices shall be deemed to be unfair methods o-f competition inr
commerce, within the meaning of the Federal T~rade C~omrmission
Act,_ as almended, and the ulsing or employing of nyoe thmshl
be demdt eaoaino hsSpplementaryCoe
(a) The sale or exchange of any product in whole or in p~art
belowf the cost of such product to the particular memnber of the-
Industry, such cost to be computed according to a cost formula to be
formulated by the Supplementary Code Authority or approved by
a reputable firm of accountants, and approved by the Administrator:
Providled, however,, That dropped lines, or seconds, or inventories
which must be converted into cash to meet emergency needs m~ay
be disposed of by any member of the Industry, at anyprean
on any terms and conditions, but. only4 if such, member of ~, B1the In-
dustry has filed with Supplemnentar~y Code Authority, not less than.
two weeks before such disposal, a staztemnent in writing, setting forth
the fact of and reasons for, such proposed disposal.
Pr~oviEed, furtherr, That selling below cost (as defined in 1Para-
graph I of this Section A) to meet existing competition on products
of equivalent design, char~acter, qualityl or specifications shall not be
deemed a violation of this Article:
PrlovidedE, furzther, That no provisions of this Supplemnentary Code
relating to prices or terms of sale, shipping or marketing, shall
apply to or affect the sale of any product for direct shipmuent in
export trade by any member of t.hec Indlustryr wiithin the meaning
of the term "export trade "' as it. ii u1sed in the lExport Trade .Act.
(b) The provisions of Article V', Par~agr~aph (b) to (g), inclusive,
of the Basic Code are a part of this Supplementary Code to the
same extent as if here repeated and set. forth in full.
(c) Supplying usable samples in excess.f of the value of 25C each,
for display purposes for less than law~ful prices. Supplyinga with-
out charge or at less than cost sample boards and equipment con-
nected therewith, including t.he servicing thereof except samples or
miodels submitted for buyers' inspection and review, not offered to
all purchasers under like conditions, which conditions shall be a
manufacturer's trade. policy published and offered in connection with
price lists to the trade illustrating or describing merchandise to be
sold in connection therewith.
(d) M~aking or giving to any purchaser of any product any gar-
antee or protection in any form against decline in market prie of
such product, after date of shipment.
(e) Cancelling in whole or in part, or permitting the cancellation
in whole or in part, of any contract of sale of any product unless
for justifiable cause or a fair consideration.
(f) Mfaking contracts requiring delivery of specified quantity or
quantities in specified time, if demanded by the buyer, but not re-
quiring the buyer to accept such quantity or quantities within the
(g) M~aking contracts at a specified price for an unspecified quan-
tity for delivery as demanded by the buyer.
(h) Offering any article, by price or otherwise, in a manner to
influence the purchase of another article.
(i) Soliciting by any member of the Industry the pooling of
orders from several customers and/or buyers in a manner to give
t~he customers and,/or buyers advantage of more favorable price or
terms than those to which the buyers would be entitled individually.
(j) Consigning merchandise for any reason whatsoever, except
to a wholly owned or controlled subsidiary, or except under circum-
stances to be defined by the Supplementary Code Authority where
peculiar circumstances of the Industry require the practice.
(kr) Copying original designs, patterns or forms of any memnber-
of the Supplementary Code, filed pursuant to the provisions of this
Supplementary Code, without his consent.
(1) Accepting the return of merchandise for reasons other than
defects in such merchandise existing at the time of shipment, seller's
mistake in shipment or purchaser's credit beecoming impaired unless
a minimum charge of 10%o for rehandling be made. Accepting the
return of discontinued and/or unlisted merchandise under any cir-
cumstances except because of defects in such merchandise exlstingt
at the time of shipment, seller's mistake in shipment or purchaser's~
credit becoming impaired.
SECTION 2. Terms shall be two per cent ten days, net thirty days,
with the privilege to discount all invoices of any one month on the
tenth day of the month following, with no allowance for anticipa-
tion; all shipments t.o be made f.o.b. factory, warehouse or branch
with store door delivery permitted in towns or cities where such
factory, warehouse or branch is located, provided, however, that
any manufacturer shall have the right to bill his merchandise with
freight allowance to equal f.o.b. shipping point or store door
delivery of any competing manufacturer's factory from which com-
petinga merchandise is suTpplied, or to equal f.o.b. shipping point
or store door delivery of any competing manufacturer's warehouse
or branch from which competing merchandise is supplied if the
price of any such competing manufacturer's warehouse or branch
does not include freight from source of shipment. The violation of
any of the provisions of this Section shall constitute an unfair
practice and a violation of this Supplementary Code.
SECTION 3. One of the main causes of demoralization and ruinous
price conditions in the Industry has been the substitution for
Standard Products of products which do not measure up to recog-
nized standards. It therefore shall be an unfair method of competi-
tion for any manufacturer, when an inquiry calling for a Standtard
Product is received, to quote on or sell a product which does not
measure up to the specifications of Standard for said product.
The Standards for Drapery and/'or Corpet Hardware, as to form,
dimensions, materials, etc., shall be th~e tanldards pr~omulgated and,
from time to time, amended by the Supplemlentary Code Authority
in cooperation w~ith the B3ureau of Standar~ds of the Unitedl States
subject to the approval of t~he A~dministrantor. Provided, however
that neither this A\r~ticle nolr a7ny provjisioln thlereof shall be construed
to prevent a member of the Iridulstry from continuing to manufac-
ture and sell, pursuant. to the remaining pr~ovisions of this Supple-
mentary Code, any product or products mannufactur~ed anid sold by
him prior to the effect~ive dlate of thlis Surpplemelntar~y Code, without
the consent of such member. Providedl, further, thant neither this
Article nor any provision thereof shall be construed to prevent a
member of th~e Indusit~ry from developing new designs or types of
Standard or other products and mnunrfactur~ing and selling the
same pursuant. to the remaining p~rovisions of this Sjupplllementary
ARTICLE Y111I-Rl10NOPlOLIE S
No provision of this Sulpplementaryv Code shall be applied, so as
to permit monopolies or monopolistic practices, or to eliminate, op-
press or discrimiinate against small enterprises.
SECTION 1. This Supplemlentary Codle and all the provisions thereof
are eparessly madeP subject. t.o the right of thie Pr~esidenit, in necord-
ance with provisions of subsection (b) of Section 10 of the. Act, from
time to time: to cancel or modify any order, approval, license, rule~
or regulation issued under said Act.
SECTION 2. This Supplem-entary Codle, excetIi as to provisions re-
quired by the Act., may be m~odlifiedl on thle barsis of experience or
changes in circumnstaRnces, such mnodifientions t~o be based uipon appli-
cation to the Administ~rator and such Notice and H-ear~ingr as he shall
specify and to become effective on approval by the President.
ARTICLE X--PRICE INCREASES
Whereas the policy of the Act to increase real purchasin g power
will be made more diffcult o.f co.nsummation if p.ric-es of go~ods and
services increase as rapidly as wHageS, it is recognized that price
increases except such as may be requir~ed to meet individual costs
should be delayed, but. when made, such increases should, so far as
possible. be limited to actual additional increases in the seller's costs.
ARTICLE XI EFFECTIVE DA~TE
This Supplemnentary Code shall become effective at 12:01_ o'clock
a.m. Eastern !Standardl Timne of the tenth day after it is approved by
Approved Code No. 84. Supplement No. 22.
Registry No. 1114--22.
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