For sale by the Sup.rintendent of Documents. Washington. D.C. - Price 5 cente
Approved Code No. 512
Registry No. 811-1-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIRE COMPETITIONJ
GRASS AND FIBRE RUG:
WE DO OUR PART
AS APPROVED ON AUGUST 27, 1934
GOVERNMENT PRINTING OFFICIl
This publication is for sale by the Superintendenrt of Documents, Government
Printing Offle, Wa~shington, D.O., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF" COMMERCB
Atlanta, Ga.: 504 Post Office Building.
Birmingaham, Ala.: 257 Federal Building.
Boston, Muassi.: 1801 CuZstomblouse.
Buffalo, N.Y,.: Chaglber of Commerce Building.
Charleston, S.C.: Cham~lber of Commerc~e Building.
Chicago, Ill.: Suite 1700j, 201 Nlorth W'ells Street,
Clevelandi, Ohio: Chtamber of Comlmerce.
Dallas, Tex.: ChamberCI of Commerce Building.
Detroit, Mich.: 801 First Nationlal BIankr Building.
H~ouston, Tex.: Chamber of comerce Building.
Indianapolis, Ind.: Chamber of Commnerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mio.: 1028 Baltimore Avoenue.
L~os Angeles, Calif.: 11163 Southl Broadw~ay.
Lrouisville, Ky.: 408 Fedteral Buildinlg.
M~emplhis, Tenn.: 229 Federal Building.
Mionenpolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customblouse.
Ne York, N.Y.: 7'34 Custombouse.
Norfolk;, Va.: 406 East Plumerw Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pitt-sbur~gh, Pa.: Chlamber of Commeree Buildling.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Frncisco, Calif.: 810 Custonshouse.I
Seattle.W~a~sh.: 809 Federal Oflice Building.
Approved Code No. 512
CODE: OF FAIR COMPETITION
G]RAIISS ANDI~H FHIBRE RUeBG: MA~bNUJFACTURING
As Approved con Ailugust 27, 1934
APReovz wa CODE: OF FAIR COMPETITION FOR THE CRASS AND EIIBRE
RUG RMANUFACTUSRINrG IN`DESTRY
AnI app~lien;tionl having been duly made pulrs~unt to and in full
complia-nce with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a' Code of
Fair Competition for the Grass and Fibre Rug Manufacturing
Industry, and hearing having been duly held thereon and the.
annexed report on said Code, containing findings with respect
t:hereto, having been mad~e and directedl to thme President:
NOW, THEREFORE, onl behalf of the PIresident of the Un~ited
States, IC, H~ugh. S. ~Johnson, Administrator for Industrial Recovrery,
pursantto uthrityresed n m byExecutive3 Orders of the
Presden, icluingExeutie OderNo.6543-A, dated Dec~ember
30, 19337,, and otherwise; do hereby incorporate by reference said
annexied report and do find that said Code complies in all respects
w~it~h the pertinent p~ro?-isions and will promote the policy and pur-
~po'ss of so id ?Title of said Act; and do hereby order that said G'ode
of Fiair Completition be and it is hereby ap~provred.
Huanc S. JoHNron,
Adndiistrator for In~dustr~ial Recovery.
JOS~EPHI Ei. BATTLEY,T
Acting Division. Adm~in~istrator.
Aiugqust ff~, 1934.
82938*-10441-126 --34 (55)
RE;`PORT TO THE PRESIDENT
The Whit~e House.
Smn: This is a report on the approvled Code of Fiair Comnpetition
for the Grass and ]Fibre Rug MIanufacturin g Indudtry, the hearing
on which was conducted in. Washington on Decemlber 15, 1933, in
accordance with the provisions of the National Industr~ial Recoivery
TIhe mlinimu m wPagers provide in this code are thli~t~y-two andc one-
hialf cents (3219h) per houri for manles and femanles, with the provision
that when females performs substantially the samet wor~k as males they
are to i~eceive the same rate of pay. N~o learner shall be paid less
than eigrhty percent (80%) of the lowest wagre for the typ~e of wnork
upon which he is engaged, andc in no case less than eighty percent
(805%) of the codal minimum. No learner shall. be paid less than
the mmimn~um waghe for a period of more than six (6) weeks, and
at no time shal~dl the percentage of learners exiccd :five percent (5%0)
of the tdita number of employees.
The mlaxiziium h1ours provided in this code are forty (40) hours
per weekr or eight (8) hours pjer day, with the provision that during
any one period of three ~(3) mlonthls in a'ny enlendanr year, employees
may be p~ermittedl to wor~k not more than f~orty-eight. (48) hours per
week, and for all time in excess of eight. (8) hours per dag and/or
forty (40) hours per week employees shall be paid on a basis of one
aind one-third their normal rate of compensation.
N~o person under sixteen (16) yBears of age shall be employed in
this indulstry, nor anyone ulnder eighteen (18) years of age at opera-
t~ions or occupations which are hazardous in nature or detrimental
No homnework shall be permitted in this industry, except in accord-
ance with Executive Order of May 15, 1934.
This industry wa in former years quite exrtensive, buit due to in-
creasing importat~ions of grass and fibre rugs fromt Japan it has
diminiished until there are now only nine (9) concer~ns in thre industry.
This industry comprises the manufacturer of fabric plrocessiini anld
finishlingr into rugs. 'They are sold in competition with otherl floor
coverings, and are designed primarily for sumnme~r use.
This industry has an aggrejiate mvested capital of $6,107,000,
and the aggregatte annual sales is $f1,457i,000. Trhe production enp~ac-
ity is $6G,545E,000.
The Deputy Adcministrato r inz his finatl report to me onl said cod'e
having fen lnd as hlerein set forth anld on the basis of all the proceed-
mgsfin atm thiis matter;
(a) Saidi code is well dlesig~nedI to promote the p~olicies and pu~r-
Sposes of Title I of the National Industri~al Recovery Act, including
removal of obstructions; to the free flow of interstate and foreign
conunerce wcshich tend to diminish the amnount thereof awnd will pro-
vide for the general welfare b~y promotingr the organization of in-
dustry for the purpose of coop~erat~ive action among trade groups,
by inducingr and mnamrtininng unitedl action of labor and m~anagementt
under adequate gov~lnernment sanctions and sup~ervision,! by eliminat-
igunfair competitive p'raiCtics, by cpromointhe ofuillest possible
utilization of the present, pr-odlctiecpct fidsreb
avoiding undue restriction of production exceptt as muay be tem~-
porarily requiredd, by increasing the conrsumlption of industrial and
agricultural p~rodurcts thorough increasing purchasing power, byT re-
ducing and relievring unemployment, bry imlproving standards of
labor, and by otherwise rehabilitation industry.
(b) Said indtustl :nornmlly employs not more than 50,000 emn-
playees; and is not crlassifiedl by me as a major industry.
(c.) The. code as appDroved complies in all respects with the p~erti-
nont provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Sub~section (a) of Section 7, and
Subsection (b) of Section 10 thereof ; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
industry ; and that said assoc~iation imposes no inequitable restrictions
on admission to mlemlbrship> therein.
(d) The code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The code is not d~esigned'l to and will not elimninate or oppS~ess
small enterprises and will not operate to discriminate a~a inst them.
(f) Those engaged in other steps of the economic process have
not been depyrived of thle right to be heard prior to approval of said
F~or these reasons this code has been approved.
Huan1 S. JoHNSON,
A dm~zinist rat or.
Avoust 97, 1934.
OOD3E OF FAIR COMPETITION FOR TTIE GRASS AND
F`IBRE RUIG 1\fANUFA~9C TURING INDUSTRY
Tro effectuate the policiesc of Title I of thle National Industrial
Recovery Act, this Code is established as a Code of Fair Competi-
tionl for the G~rass and Fibre Rugi Manufacturingr Indust~ry, and its
provisions shall be the standard of falir competitions for suchr indus-
try aInd b~indling upon every- mnember thereof.
SE(TION 1. T~he term11 i" GeiSS andl Fibre Rug M~anufactu~ring In-
dusry "" as used herein includes the mlanufacturle for sale of G~rass
and/or Fibre wroven fabrics fo~r rugs and mni~tings, whether as a;
final process or as a part of a larger or further process.
SEenow, 2. Tle. term mem~lber of the industry includes, but
without limlitation, any individual, partnership, aLssociation, corpo-
ration or olther forml of enterIpriseic engagfed in the industry, either
as ar emlployer or on his or its own behalf.
SEenowN 3. The terml employee as used hereinl includes any and
all persons engaged in th-e industry, hove~ver com~pensatedl, except
a member of the inidustrg.
rSECTION 4. Ther term employerr as used herein includes anyoneo
by whIoml such employee is comnpensatedl or employed.
Seerirox 5. The terml "L regular mnerchanlise "" as used herein mleans
all mercha~ndise other than mill seconds, drops, sa m ples and
SECTION 6. The term drlopi "" as ulsed h-erein mecans discontinued
patternls or weaves of rulgs alreadlv mnllufactulred and inl stock;
and seconds as usedl herein signuiif~ie merchandise which contains
SECTION 7. The terms "A-ct andl "Adminisftrator as ulsed hlerein
mean recspect~ivelyl Title I of thie Niational Indlustrial Recover~y Act
aInd the AdminirsitrIator~ for Industrial Recovery.,
ARTICLE III --110 uS
SI~rnoCN 1. Except as hecreinafter p~rovided, no employee shall be
permlitted to w~ork In ecsress of 40 hours in any one wieek or 8 hours
in any one daty, p~rov\idedc, h~owever, that dur~inlg any one period of 3
months in any calenda;r yene,' emlployees may be permnitted to work
not more than 48 hours per~l week, andl for time ir excess of 8 hours
per dayv and/or 40r hlours per wecek emnploy'ees shall be paid on a
basis of~ one andr one-thlirdc~ theiri normal rate of compn ,rsationi.
(a) Trhe maxnimumn hlour~s es-tabllishled herein shall~ niot apply to
emnployees engaged~ in. work involving~ prlotect~ion of life and/lor prop-
er~ty or emecigcrgecy miainteinance or emerg ncyl repair work, but mn
any such ca.se at least one and one-third the normal rate of com~-
pensation shall be! paid for all time wocrkied in excess of 8 hourss in
any one dlay and/or 40 hours in any one week.
(b) The maximum hours established herein shall not apply to
outside salesmen nor to employees engaged in. a managerial, super-
visory or executive capacity who earn regularly $35.00 per week
(c) The maximum hours established herein shall not apply to
repair shop crews, electricians, enginleers, shipping crews, who shall
be per~mitled, to work not more than 44 hours per week, except that
during one! period of 8 mronthls in any calendar year theyd shall be~
permitted to work not more than 52 holurs per week, ndfor time
in1 excess of 8 hours per day and/or 40 hours per weekz theyshl
be paid onl the basis one and one-third their normall rate of lcom-
(d) The mlaximlum hours established~ herein shall not apply to
oifl~ice or clerical workers wmho are permitted to workr not more than.
an average of 40 hours per weekr in each calendar qluar~telrly period,
provided, however, that no such employee shall be required or per-
mlitt~ed to work~ more than 48 hours in any one week or 8 hours in
(e) The mnaximum hours estabished- hnereinl shall not apply to
wPatchmen and firemen who shall not be permitted to work more
than 56 hours in anyone week.
SECTION 2. ~No emlployTer shall knowingly permit any employee
to work for any time which, when addecd to the time spent at workZ
fo~r another employer or employers exceeds the maximum permitted
SECTION 3. No employee shall be permitted to work more than
6 days in any 7 day p~eriodl.
ARTICLE 17- AmGES
SECTION 1. No employee shall be paid in any pay period less than
at the rate of 3i2f.0C per hour, except as otherwise herein provided.
(a) Fem~ale employees performing substantially the same work
as male emnpoloyees shall receive thne sam rate oftf p lay l reras male em-
ployees, andi when they disphece male employees te hl ev
the same rates of pay as the men they displace.
(b) A person whose earning capacity is limited because of age
phy1~sical or mental hlandlicp, mty b employed on lighto nkle
wor~k, at a wage b~elow the mlinimum established by this Code, if
the employer obtains from ~the state authority, designated by the
United States Department of Labor, a certificate authorizig such
person's employment at suchl wages and for such hours as shall
be stately in the certificate. Such authority shall be guided by the
instructions of the U~nited States D~epartment of Labor in .issuingr
certificates to such persons. Each employer shall file monthly with;
the Code Aut~hority a list of a11 such persons employed byr him,
showing the wages paid to, and the maximum hours of work for
SECTION 2. This Articlet establishes a, minimum rate of pay which-
shall apply, irrespective of wh~ethler an employee is actually comn-
pensated on a time rate, piece-w~ork performance or other basis.
SECTIrOs 3. Employees shall in no event have their hourly rates
reduced; anld equlitalble' ndjuFtm~ents of al wages shall be zhade
within (; days~ fiiron th~e approval of this Code, and the Code Au-
thority shaill sulbmit. fo~r the aplprov\al of th Administrator a, pro-
psosarl for such adljustmnent inl wages. Upon approal by the A~d-
mninisti:rat or, after suich hearin g~ as he may preserabe, such proposal
b'hall beoeC'I~ bjlindlin as5 a par~t of t~his Code.
No learnelr (any productive employees not previously employed in
the indlustr~y) shall be paidl les;s than 830%c of the lowest wvage for the
type of workll upon whichl he is engaged, and inl no case less than 80
per cenlt of the Codal minimum. No learner shall be paid less than
the miinimumi wage for a period of more than 6 weeks, and at no
time shall the perlcentage of learners exceed~ 5 per cent of the total
numiber of employe,'tes.
Airr'IC(LE V-ENEIRAL( LADOHl PROVISIONS
StrCI:'ow 1. C~hl Labor.--No person ulnder 1 years o~f ag~e shall
be emp~loyed~ in this industry; nor~l anyone under 18i year's of age? at
op~erations or otccupa'tions whlichl are hazardous~ in nature or detri-
mnentnI to health. The Codre Authoril~ty shall submit to thre A~dmin-
istrator a list of such oplerations~ or occupa~tions. In any ~State an
emp~loyer sh~all be dlenemed t~o have comlphed with this provision as
to agec if he shall have on file a certificate or permit duly signed by
thre authority in such State emipowered to issue employment or age
cer~tifica~te or permits showing that the employee is of the required
S,:croc, 2. (a) Emplollyees shlall have thne right to o~rganize and
bargain collec~tiverly through r'')1epresnta~tivs of thlei~'Cr ow choosing,
and shall ber free from the inter~ferenle,, restraint, or crnercion of
employers of labor, or their ag~ents, in thne designationl of suchi repre-
senltative~s or in self-organizatio nI or in other concer~ted' activities
for the purpose(I~ of collectivec ba~rg~ninn g or other mutual alid or
(b) No emplloyet e andl no o~ne seekingf emlploymenclt shall be required
as a condlition ofi emlpl oym ent to join any co~mpany unioni or to re-
frah.I from joining, corganizing,, or assisting a labor organization of
hI~is ow~n choosing, and~
~(c) Employer~s shall comlply w-ith the maximuml hours~ of labor,
minimumi ra~tes of pay, and other conditions of. employment approved
or prescribed by the~ Presiden~t.
Setrs .He~dnThrou~l gh Sbter'fulge.-No mpnloyerC shall r~e-
classify emplloyeesc or duties of occu~pation si performedcl or engage mn
anyi mother scub~terfuge so as to defeat the p~urposes or provisions o~f the
Act or of this Code.
Serms'IO 4. ASt~nandas forl SafetU andu Haltrh.--Every employer
shall provide for the safety and health of employees during the hours
and at the places of their employmenclt. Standanrds for safety and
health shanll be umiijljttedl by the Codle Authority to the Admin-
istrator writhin six months after the effective date of tihe Code.
SI-:cvrox 5. State( Lanl's.- No7 provisioni in thiis C'ode shall super-
sede aniy State or F~ederal law which imposes on employers more
stringent requirements as to age of emplloyees, wages, hours of work,
or as to safety, health, sanitary or grenera:l worklinlg c~onditio~ns, or
insurance, or fire protection, than atre impllosedl by this Code.
Suenrro 6. Poeting Labor Prvisions.--All em~ployer~s shall porcst
and kreep posted copies of the labor provisions for this Code in con-
spicuous places arccessible to all employees. Everyr memlbe~r of the
Industry s~hall comply with all rules and regulations relative to tlhe
posting of p~rovisions of Codles of FCiair Compettiton which mnay from
time to time be prescribed by the A~dminist rator.
SEC?'ON 7. HiOMe IFORX.-RO HIlcmber~l of the industry shall em-
ploy any3 person or persons to manufacture, in wFhole or in part, any
product of the industry in the home, except in aIccordannce with
SExecutive Order, May 15, 19i34.
SEenowN 8. Reportinig of Violiatione.--No employee shall be dis-
missedt byr r~eason of makning a comlplaint or giving evidence with re-
spectl to an alleged violation of this Clode, or any o~thert Codle.
ARTICLE~ VI -AuxxxIsrnaTrro
SECT1ION 1. A Code Authority is hereby e:;tablishedc to cooperate
writ'h thet Adm~ninistrator1 in the administr~ation of this Code and shall
consist, of 5l members to be chosen by the industry, through. a fair
method of selection to be approved by the Adm rli nist rator.
SECTION 2. In addition to membership as above provided, there
may be 3 members, without vote, to be known as Admninistraton
memlbersl to be appointed~ by the Admninistrator to serve without
comnpensatiojn from the industry for such terms as he mny specify.
SECnosN 3. Each trade or industrial association diz'ectly or in-
directly pa~rt ici nafi ngrr------- ini the selectionr or activities of the Code
Au~th~orltly shall Impose no inequitable restriction. on membership, and
shall submit to the Administrator for his approval true rcopies of its
articles of association, by-laws, regulations and any amendments
when made thlelreto, together with sulchl other information as to memn-
herships~, organization and alctivities as the Administraztor may dteem
nece~ssa ryS to effetuartle the purposes of the Act.
SEC'TIO~N 4. ICn order that the Code Authority shall at all times be
truly~ retpres~cntativv e of the indu~stry and in other respects comply
wit the provisions of thie Ac~t;, the Admini~st~rtor' may prescribe such
hearings as he mray deemcl proper; and if he shall find thart the Codle
Author~ity is not truly~ representative or does not in other respects
comply with the provis;ions of the Act, may require an appropriate
modifientionl in the composition and method of selection of the Code
SECTION. 5. N~othinrg contained ini this Code shall constitute the
members of the Code A~utho~rjity partners for any purpose. NPor
shall any member of the Code Authorit~y be liable inl any man~nFer to
anyone for abny) act of any other mcmber, officer, agent or employee
of the. Cod'e AIuthtority. Nor shall nany membtrr of the Code Autlthor-
ity, exercising reansonable diligence ini the condctlrt o-f his duties here-
under, be liable to anyone for any notion or omissi;ion to a7ct ulnderC
this C~ode, except for his ow~n wilful malfeasance or n;nfrasance.
SECTION 6. If the Administrator shall at any time determine that
any action of thle Code Authlority or any agency thereof may be
unfair or unjust or contrary to the public interest, the Administra-
tor may~~;" require that. suc h action be suspended to afford an o ppor-
consideration byv such Code Authority or agency pending final action
which shall not be effective unlss the Administrator approves or
unless he shall fail to disapprove after thirty (30) days' notice to
him olf intention to proceed w~ithn such action in its original or
POWERS ANID DUTIES OIF THE CODE AUTHORITY
SECTION 7. Sulbjc~t to such rules and regulations as"may be issued
by the Administrator, the Code Author~ity shall have thle following
further p~ow-ers anld duties, in addition to those authorized by other
provisions of this Code.
(a) To insure, the execution of the pr~ovisions of this Code and to
p~rovlde. for the compliance of the industry with the provisions of
(b) To adopEt by-law~s and rules alnd regulations for its procedure.
(c) To obtain fromi members of the industry such informlationn and
report as are required for the adminiistration of the Code. In
addition to information required to be submitted to the Code Aut~hor-
ity, members of the industry- shall furnish such statistical information
as the Admlinistrator may~ deeml necessary for the purposes recited
in Section 3 (a) of the Act to such Fiiederal and State agencies as he
mayg designate; p~rovrided thnat nothling in this Code shall reclieve any
member of the Industry of any existing obligations to furnish re-
ports to any Govlernment agency. No individual report shall be
disclosed to any' oter mzembe~r of the industry or any other party
except to such other Govrernmlental agencies as may_ be directed by
the Admhi nist rator.
(d) TCo use such trade associations and other agencies as it. deems
prloper for thle car~ryingr out of any of its activ-ities p~rovidedl for
here~in, provided that nothing hlerein shall relieve the Code Authority
of its duties or resp~onsibilities under this Code and that sjuch trade
associations andl agencies shall at all times be subject to and comply
w~ith the provisions hereof.
SECTION 8. IL Leinn found necessary to support the administration
of this Code in order to effectuate thre policy of t~he A~ct and to maint-
tainn the standnrdls of fair competition established hereunder, the Code
Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoingr purposes, and to mecet suich obligaations out
o~f funds which shall be held in trust for the purposes of the Code
and raised as hiereinafter provided.
(b) T~o submit to the Administ~rator for his approval, subject to
such notice and opportunity to be heard as hie may deem necessary
(1) an itemizxed budget of its estimated expenses for the. foregoing
pur~poses, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the In-
dustry entitled to the benefits accruing from the maintenance of such
standards, andi the administration thereof.
(c) thAfter such~ budget and basis of assessment have been approved
by heAdministrator, to determine and- collect equitable assess-
ments as abovet set forth, and to thalt end, if nces ar~y, to institute
legal proceedings th~erefor in its own namet.
(d) Each member of thre Industry shall be lialble for hnis or its
equitable assessment, to thie expenses of the mainltelnance of the Code
Authority, as hereinabov-e provided.
(e) Only members of the Inldustry compjlyinlg with the Code and
contibuting to the expenses of its administrations~ as here~inabove
provided, (unless ducly exempted fromc mlakiingp sucht contributions),
shal be enltitled to participate in thec selection of members of the
Code Authority or to make use of any emblem or insignia of the
National Reco~very Al~dministra~tion.
(f) The Code Authority shall neither incur norl pay any obliga-
tioni substantially in excess of the amount thereof as estimated in its
approved budtget, and shall in no event eceedc~ the total amount con-
tained in the approved budget except ulpon a~lpp~.rovl of the Admin-
istrat~or; and no elsubsequent budget shall contain any deficiency item
for expenditures in'excess of prior budget estimates except those
which thle Adm~inist~at~or shall hav~e so a1Pproved.:
(g) To recommlendt to the Administrator any action or metnsur~es
deemed advisable, including further fair trade peinet~icet provisionIs
to govern members of the industry in their r~elations withz each other
or writh other indiujt~riea; mueasures3~1 for1 indusIltrial pilnnni ng and stabi-
lization of employment; andl including modlifications onf this Code
which shall become effective as a part thereof upon approval by the
Administ~rator after such notice and hearing as he may specify.
(h) To appo)int a Tf:rae Pranctice Commniftte whltich shall meet
with the T'rade Practice Committees appo'intedl under such othe
codes as may be related to the industry for the purpose of formulat-
ing fair trade practices t~o governl the relationships betwe-~en employee
ers under this Code and uInder such other Codes to the endl that such
fair trade pract ices may be proposed tor the idmn!i nist rator as amend-
ment to th~is Code and such other Codets.
(i) To provide facilities for arbitratiorn, and subject to the ap'-
proval ofi the Administr~ntor, to prescribe rules of~ procedure and
rules to effect, compliance with awards and de~term~lnations.
(j) The Code Author~ity shall make a study of conditions in the
industry to det~ermme the feasibility of the adoption of a shlorter
working week and shall, wcPithin 6 months after the effective date of
this Code, mcak~e a report to the Admrinistra~tor of its findings. Th]e
Code Authority shall also sulbmit, to the Adlministrantor, within 6i
months after the effectie, date of this Code, a plan. for the stabiliza-
tion and regu~l3 riza\tion of employment.
ARTKIC`LE V7II OPEN PRICE AILING
SECrTION 1. Each m~emnber of th~e indulrstry shiall file -with a confi-
dential and disinterested agent of thec Code Authority or, if nn
then with such an agent de~iglnated by the Administrator, identfe
lists of all of his prie, discounts, reba;tesi, allowannces, and all other
terms or conditions of sale, h~ereinafte~r in this Article referr~ed to as
" price termss, which lists shall comlpletely a-nd ac~curtately conform
to and represents the individual pricingr practices of saidl member.
Such lists shall contain the price terms for all such standard prod-
ucts of thec indulstry- as are! sold or offered for sale by said member
and for such non-standlard products of said member as shall be
designatedl by the C'ode Authiority. Saidl price terms shall in the
first instance be filed w-ithinl 30 dlays after the date of approval of
t!.is provision. Price terms and revised price terms shall become
effective inuinedliately upon receipt, thereof by said agent. Imme-
dliately upon receipt there f said ag~enrt shallby the iegrp or otche
equally prompt means notify: said memberofteim ofsc
receipt. Such. lists and r~evlslons, together with the effective~ time
thereof, shall uipon receipt be immediately and simultaneously dis-
tr~ibutedi to all members ofE the industry andi to all of their customers
who have applied ther~efor and have offered to defray the cost actu-
ally" incurred byJ the Code Author~ity in the preparation and distribu-
tion thereof andl be available for inspection by any of their custom-
ers at the office of such agent. Said lists or revisions or any part
thereof shall not be made available to any person until released to
all mlember~s of the industry and their customers, as aforesaid, pro-
vided, that prices filed in the first instance shall not be released
until the expilraztion of th~e afor~esaid 30 day period after the approval
of this Codec. The Codle. Authority. shall mlaint~ain a permanent file
of all price terms filed as he~reinl provided, and shall not destroy
any par't of such records except uiponi written consent of t~he Admin-
istrator. Uponl r~equrest the -code Authority shall furnish to the
Adminjistrator or any duly designated agent of thle Administrator
copies of any' such lists or revisions of price terms.
SECTION 2. Wmhen any member of the industry has filed any revi-
sion, such, member shall not file a higher price within forty-eight
SSEtCTION 3. No; member of the industryS shall sell or offer to sell
anyv products and,/or services of the ind~ustryv, for wrhich price terms
hlave been filed pursuant to the provisions of this Ar~ticle, except in
accordance with such price ters.
SFECTIrON 4. NO Ulemb-er of the industry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt. to caused any mnember of the indus-
try to change h-is price terms by he use of intimidation, coercion,
or any other influence consistent with thel maintenance of t~he
free and openly market. which it is the purpose of thlis Article to
ARTICLE 7111-OST.S AND PRICE CUPTINGT
SECTION 1. Thle standards of fair competition for the industry
with reference to pricing practices ar~e declared to be as follows:
(a.) Wilfully destrulctive price cuttingr is an unfair method of com-
petition and is forbidden. Any member of the industryv or of any
other in~dustry or the customers of either mnay at any time complain
to the Code Authority that any filed price constitutes unfair compe-
tition as destructive price cutting, imperiling small enterprise or
tendling toward monopoly or the im pa irment of code wages and work-
ing conditions. The Code Authority shall within 5 days afford an
opportunity to the member filing the price to answer such complaint
and shall within 14 days make a ruling or adjustment thereon. If
such ruling is not concurred in by either party to the comnplnint, all
papers shall be referred to thle Rtesearch and Planlninlg Division of
NRA~ which .shall rIender- 1 a'report andi rec~ommllenllation thereon to
(b) W~henl no declared emergencyr exists as to anty given productt,
there is to be no fixed~ mininlulln basis for prices. It is illtntended that
sound cost estimatinga metods shouldl be usedl and that. considerationio
shoulld be gri ven to costs i n the de~ttermllinIa tionI of pricing police es.
(c) Whi~Jen an emergency exisst as to any given product, sale be~lowv
the stated minimum~ price of such procduc~t, in1 violation of Se~ctionl 2
hter~eof, is forblidden.
SECTON 2. Emefr~rgenicy provisio-ns.-(a) If the Administrator, after
investigation shall at any time find bothr (1) that an emergency has
ar~isen within the indcustr~y adverselyr nliecting~ -malll enterprises or
wages or labor con~ditions, or tendrilgr toward~cl monopoly or other
acute conditions which tend to defeat the purposes of thle Act; a nd
(12) that the determination of the stalted minimumn In-a-0l for a speci-
fled produl~ct within the industry for a limited per~iod~ is necessary to
mlitigatea the conditioning constitut~ingr such C~lemergencyV and to effectu-
ate the p'Urposje~s of the Act, thle Code AulthorityS may cause an imr-
partial agency to investigate costs and to re-omml~end to the Ad mlinliS-
trator a dleterm~inatio-n of the stated minimum~ price of the product
affected by the em~ergency- anZd thereuplon the Admiini~tstrato may
proceed to determine such statedl mnlimluml price.
(b) Whlen the Administrator shall have detel~rminedi such stated
minimumin price for a specified product for a stated per~iod, which
price shall be rea:sounbly calculated to mitigate th~e condlit~ions of such
emergency and to effectuate the purposes of the Na'tional Industr~ial
Act, he shall publish such price. Th-ereaft~er, dur~ing~ such stated
period, no member of the indusitr~y shall sell such specified pr'oducts
at a, net realized price below said stated minimum price and anly such
salc siha~ll be? deemedr dePstruc~tiv e p~rice Culfttng. Fromy time to time,
the Code ALuthority may recommlendt revie-w or reconsiderantion or the
AdministratorJ may cause any determinations hereunder to be r~e-
vFiewedc~ or reconsidered and appropriate action taken.
SrfECTION 3. C08t Fin~~iding.- The Code Aiuthlority shall cause to be
formulated mlethods of cost finding andi ac~counting~ capable of use
by all members of the industry, and shall1 submit such methods to
the Administrator for review. If approvedc by tlhe Admllinistrator,
full information concerning such mnethoc-ds sha~ll be madeC~ available
to all members of the industry. Thereafter, each mlemb~er of the
industry shall utilize such methods to the exrten~t foundc p~racticable.
Nothing herlein conrtainedl~ shall be cocnstruLedl to p~ermit the Code
Aurthlority atny agent thereof, or any me~tmber of the industry to
suggrest. uniform conditions, pe~c~erlntaes or d~iffere~ntial s or other uni-
for~m items of cost which are designed to bring about arbitrary uni-
fority of costs or prices.
B ATICLE IX-TRA~DE PRACTICE TULES
SCECTIO)N 1. 28013.- $) NO Diember of th~e Indulstry shall sell mer-
chandise on any but the following terms of payment:
1. Cash, 4% 10 days, 60 day~s extra or 4%0 60 days from enrd of
2. Anticipation to be allowed at the rate of 6%b per annum.
(b) No mnemberr of the industry shall allow a discount of more
than 15%~ extra, on drops or ~20% or' seconds over the maxi-
muml disc~ountt allowed on regular merchandise, except by special
permission of th~e Code Authority with the approval of the Admin-
SECTION 2. BRibesh. No member of the industry shall give., permit
to be g~iven, or dlir~ectly offers to give, anything of value for the pur-
pose of influencing or rewnr~ding the action of any employee, agent
or representative of another~ in relation to the business of the em-
ployer of? such employee, the principal of such agent or the repre-
sented party, witholt the k~nowledgee of such employer, principal or
party. This provi. ion shall not hfe const~ruedl t~o prohibit free and
general distribution of articles comimonly used for advertising except
so far as such articles are actually ue for commercial bribery as
SECTION 3. SeCret; Reraftes.--No member of the industry shall
secretly offer to make any payment or allowance of a rebate, refund,
commission, credit, unearnedl discount or excess allowance, whether
in the form of money or otherwise, nor shall a member of thle indus-
tryJ secretly offercl or extend to any customer any special service or
privilege not. extended to all customers of the same class, for the
purpose of inlfluencing a sale.
SECTIONr 4. Con/~jignment.-NoN member of the industry shall ship
go0ods on consignment. except with the approval of tlhe C~ode Auithor-
ity where condi~tions in the industry warrant. such practices.
SECTION, 5. nRetwacn.-N~io member of t~he indlustry~ shall accept. thle
return of merchandise unless justifiedl.
S;ECTION 6. MnlfilS "CR Sccon(18 ".-No mlember of the industry shall
fail to mark on seconds ", both on ticket and bales, the words "' Mill
SECTION 7. Drop S~h~ipmennts.- Noo member of the industry shall
makie drop shipments of regular merchandise t.o customer dlirect on
order of jobber unless jobber has p~lacedl an initial order for not less
th an $F1,000 nett.
SECTION 8. No member of the Industry shall brand or miark or
pack any goods in any manner which is intended to or does mislead
purchasers with respect to the brand, grade, quality, quantity, origin.
size, substance, character, nature, finish, material content., or prepa-
ration of such goods.
SECTION 9. The piracy of styles or designs by any member of the
Industry is hereby declared2 to'be unfair competition and a violation
of this Code.
ARTICLE X~:-SALES OF "' DROPS"
SECTION 1. NO member of the Indulst~ry shall sell as "L drops or
" seconds in any year an amount in excess of 8%0 of the annual
gross sales of regular merchandise in said year, except upon a~pphecn-
tion to the Code Authority setting forth t.he amount of said mer-
chalndise to be sold and the approval of the said application by the
~ART'ICLE XI--E'RevonS on SALXEST
SECTION~ 1. Each member of the industry shall sulbmit to the Code
Authority quar~terly staltements show~ingj the totall net sales in dlollarr
value of regular merchal~rti.-::, drbiop and wrocndsl for the preceding
SECTION 2. Each memlber of the Industry shall submit to thle Code
Authority w~ithin 30 days after~ Sep~tembere l 1st of each year the
following information :
(a) Trotal sales by clsquare yards of pr~icec lines for prerceding seas~on.
ARTICLIE XII-MomemnlI(. ~rcno
SECnow, 1. This Code alnd all thne provisions thereof are expres~sly
made subljec-t to the, right of the Pr~esidenlt, in accori1dance. with the
p~rovisions of sub ,cctiion (b) of S-ction1 10 of the Act, from time to
time cancel or modify any order, approval, license, rule or regulation
issued undeltr said ~Act.
:S;EemCS 2. Such of the provisions of this Code as are not required
to be inlclud'ed hnerein by the ArSct mray, with the approval of the
Administraat or,, he modified or eliminatedi in such mlanner as may be
indicated by the needs of the public, by chlangres in circumlstanc~es,
or by ex~e~rince. All the provisions of this Code, unless so modified
orr Bliminated~, shall remain in. effect until June 16, 193j.
AnrrECE~ XII--Iu Maxr,(;nI:s, ETrc.
SEenoxN 1. No pr~ovision of this Code ~hall be so applied as to per-
mit monopolies or. monopolistic practices, or to el!nun~ate, o press or
dise-!iiinnonte against mall enterprises.-
ART-IcLE XTIVT-Pawn.r honCIE.\ES
SECTIOI~N 1. Where,a~s the policy of the Act to incr~ease real pur~chas-
ing powner will be made more diflk~ultr of consummationo if prices of
goods and ser~vices increase as rapidly as wages, it is recognized that
price inlcrease~s except such as may be required to meet individual cost
should be delayed, but when mnade such increases should, so far as
possible, be limit-ed to actual increases in the seller's costs.
AnOLEn IXVTT-ErnEnvt\ DATE
Th~is Co(de shall become effective on th~e second M~ondayg after its
approvali by the Administrator.
Approved Code N1o. 512.
Regi~stryl No. 3311-1-0.
UNIVERSITY OF FLORIDA
lillillilllillllIIIIIII 1II YII lllillIII 1IIIIl
3 1262 08856 0437