Code of fair competition for the stay manufacturing industry as approved on February 26, 1934


Material Information

Code of fair competition for the stay manufacturing industry as approved on February 26, 1934
Portion of title:
Stay manufacturing industry
Physical Description:
p. 315-325 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Shoe industry -- Law and legislation -- United States   ( lcsh )
Leather goods -- United States   ( lcsh )
Notions (Merchandise)   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1655-01."
General Note:
"Approved Code No. 307."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950956
oclc - 656833105
System ID:

Full Text

l' '1
For sale by the Superintendent of Documents, Washingtonl, D.C. Price 5 centa

Approved Code No. 307

Registry No. 1655--01







UNrV ... FL LI B.



This publication is for sale by the ;Superintendent of Doc~umients, G~overnmoutt
Printing Office, WOCTi.hingtont, D.C., and by district offices of the Bureau of
~Foreign and Domlestic Commerce.

Atlalnta, Ga.: 504 Post Office Buildingr.
Birmuingham, Ala.: 257 Federal Buildling.
Boston, Mass. : 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, SOC.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17i06, 20)1 North We'clls Street.
Cleveeland, Ohio: C~hamber of Commerce.
D~allats, Tex.: Chamber of Commerce Building.
Detroit, Mrichl.: 801 First National Bank Enlild~ing,
Houston, Tex.: Chamber of Commerce Buib~ling,
Ji:Irviannonalls, Ind.: CIIlamber of Commerce Buibilnug.
Jacksonville, Fla.: Chamber of Commerce B3uildling.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.~3~
Louisvrille, Ky.: 408 Fe~deral Building.
Mlemphis, Tenn.: 229 Federal Building.
M~inneap~olis, Miinn.: 213 Federal Building.
Newi Orleans, La.: Room 225-A, Customhouse.
New- Yorkr, N.Y.: 734 Custombouse.
Norfolk-, V~a.: 406 Eas~t Plume Street.
P'hiladelphia, Pa.: 422I Commercial Trust Unlild~ing,.
Pittshurlb. Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mn/o.: 506 Olive Street.
San ~ranlltwo,~o Calif.: 310 Customzhouse.
Seattle, W~ashi.: 809 Ft-derul Office Building.

Approved Code Nco. 307



As Approved on February 26, 19341

A~n application hiav8ing been duly made pulrbuant to aInd in full
comiiplianice writh the provisions of Title I of the National Ind~ustrial
Rercovery Ac ~t, approvel June 16, 19:33, for approval of a Code of
F'air C~ompletition f~or the Stay MIa nuIfactunri ng Industry, and hea ri ngs
havn\ing been duly held thereon and the annexed report on said Code
cocntaninng findings with respect thereto, having been made anid
diireicted to the President:
NOW, THEREFORE, on behalf of the President of the UTnited
States. I, ]Hugh S. Johlnson, Administrator for Industrial Recoveryl,
purunn toautorty estd i mebyExecutive Orders of the 1Presi-
clent, including Executiv-e Order N.64-,dtdDcme 0
:1933, and otherwise; do hereby incorporate by reference said annexed
r~epor't anld do .finld that said Code compiles in1 all :respects within the
pertinent provPisions andl will promote the policy and purposes of
said Tit le of said ~Act; and do hereby order that said Codle of Fair
Competition be and it is her~eby approved; provided that within
niinetylv days I many direct that there be a further hearing on such. of
thfe prov,\isions of said' Code as I[ mayT dleignate, and that any order
wvhich I miay make after such hearings shallI have the effect of a condi-
tio ontheappova ofsai Coe;and provided further that the
wi~nord "hempl~ioyee or" bea elimina from Articl~e V;II[ Section 9.
Hean. S. JonISSOS,
.Adm~~;iniistrator forl Indus~r~iarl Re-corc~r~y.
Appr''ova:l recommnended:
G:Ec. L. BffERRY,
D3 'sivi, ionA dministratf 'fo r.
Februry 8(~, 19335.

424(61*-37--'i1 34)-34



The White House.
Sta: T'his is a repor-t on the approved Code of Fair Comp~etition
for the Stay Mall~~nufaturing Industry, the hearing on w~hichl was con-
ducted in Wa~1;shing:ton1 on January 16, 1934, in accordanlce? with~ the:
provisions of the National Industrial Recovery1'3 Act.
The minimum wages provided in this code are thirty-five cents
(354) per hour for males and femallesi, with thne provision that wh~en
femah-sl..c of the skilled class perform the same work: as males they are
to receive the same rate of pay. Learners are to receive eighty per
cent (80%0) of the mninimnum wage, and suchn learner class is lum~ted
to five per cent (5%0) of the total number of employees in any
The maximum hours provided in this code are forty (40) hours
per week with an allowance of five (5) hours per week during any
eight (8) weekls in a six (6) months' period, with the p~ro~ision that
all time in excess of eight (8) hours per day or forty (40) hours per
week shall be paid at the rate of time and one-half.
No person under sixteen (16) years of age shall be employed or
engaged in this industry. H-ome work in this indn'~try3 shall be
abolished on June 1. 1934.
The wordl "stay as used in this industry, was originally inter-
preted to mean a piece of material used to reinforce, or strengthen,
parts of shoes, sporting goods, and other articles usually made-lt of
leather. It has since been corrupted so that it now r~efer~s to rein-
forcem~ents, tr~iianainlg s of all kinds made(.1 in continuous len~th~s and
othlerw~ise, made of leath-er, imitation leather, and other fabrics in
widths from one-sixiteethcll (TA) of an inch to four (4) inlchels w~ide.
These products are sometimes follded in various ways, pierforated,
pinked, or painltted with lacquer. In other ca~ses two (2) or mo~re
units are combined by cemetnting or stitching. There ar~e also bind-
ings and inter~lucing- s in numerous formls and styles.
Approximaztely seventy-five per` cent (75f;) of the volume of t~he
products of this industry are sold to the shoe manu'factur11iin indus-
try. A considerable vorlllum. although a diminishing volume, is sold
to the: automobile trade. BCr~indigs and seam wclilngs are fur~nishecd
to the sporting goods11 1 InIr andc.t urers.I;. Bindringsr,, fa1cinSz, and seam~
weltings are miadec for the spat and ga:1i te.'1 r i manufacturers. Seamll
welttinlg-; piping~Ls. and b~indings~ are made~T for the poc(.ketlbookl, bag
and noveltyy leter1 manu 11711flc~t urersl~.
T'he industry is Itl~rgely a ses vice buslino- as the nulajoriity of thle
products are mIanulfalctur~ed on spec~ia~l orieri. No large invepntosries
aret keltl by the ma~lllnfc~tur erls.
A proposed codelc was origina;lly subinlitt h I in July, 1!,33. At that
time the minimumr wagerl pmlrropose wasn t~hir~trlr~ n dlclars (513.00)r perr


w~teek, andc the hours w-eret to be an avecr~age of fort ly (40) h~ours~ per
w~eek over a sixr (6i) monthsh peidadpritn forty;-eighl t (48S)
hous n ay artcuar ee. y their owrn vonlfition the majority
of the memriber~s of' this industrily op,1;erated under these~~ p~'rov~cicions.

in their payrolls, andl~ lllc s aproimately tw-enlty pe~ r cet (20"; ) Inth
numlbter Of employ(,IFees. h ao rvoss the approva,\c~l codeit
w~ill Cnlcaus anothler inlCreaiSe of tw"CentyI perl ce'nt(0)inhepyl
andl in. ther tol~ld number'~ 1 of emloyees,!Cr~ thus1 mal~king a total inlcreme:~1
olf approx''imalltely forlty' per cent (4100 ) over thet figuresl in thre early~
par~t of 1933.
The Deputly Admlinist rator in his final reportt to mle on said Code1~
hlavisig fouind as hlereinl set forth and on the basis of all th3e pflcccrocee-
ings in this matter;
I findl thfat:
(a) Sailt cod~e is wFell designedl to p~romotlc~ e the pollicies and pu~r-
poses" of Title I of the Nautionaul Ind~ustrial Re~~l\cover Act, ilc~ludling
rIemlovanl of robstructions to thle fr~ee flow\ of inlterstatec and foreigi~n
commerce which~l tenid to dimlinishl the amounllt there'~of andl will pro-
vidle for thec g~enrllc I welfare bry promoting the organliz~t ionl of
industry for thle purpose of cooperative action among~lF the tradel
grnroups by inducringo and maointainingi unlitedd actionl of labor andr
marnagnti~iiil unlder adequate goverinmental sanctions and suiperv\isiion,
byl eliminat n~gr unfair competitive practices, b~y p~romorting the fullest
p'ossible utilization of the pI:resenlt prodnetive enp~acity of ind'ustrieis,
by~! avoiding~ undue, restriction, of pr1odulction (exicept as may be temn-
'ornr'ilyr requiredd, by inicreascing~ the consulmptionl of industrsia~l and
agr~icultural products through increasing~ purc~hasing powerr, by re-
duelring and relieving ulnemploymntlt by improv')\ingr hftandards o(f
labor, and~ by othler\ise r~ehlabilitatinlg inldulstry.
(b) Said Industr~y normally emnplnys niot mocre than 50,000 em-
playees:c~ and is niot classified by me as a miajor indusitryT.
(c) Thle Code as appr~oved comlplies in all respects writh~ the per-
tinent provisionls of saidr Title of said~ Act, iniclud~ingr w-ithout limita-
tion SulbscCtionl (a) of Section 3, fSubsec~tionl (a) of Sec~tionl 7, and~
Subsec~tio~n (b) of Section 10 thereof; and that the applienllt associa-
ti~on is an indus~itrial association truly repr~esenitative of th~e aforiesaidl
Industry; amnl that said ascsocia~tion imposes no inlequitablle restrlic~-
tions on namnission to membership therein.
(d) The Code is not designed to And w~ill not ~permlitt monlopo~lies
or monopoiistic practices.
(e) The Code is not designed to andt will not elimninate or opprgss
small eniteriprise s anid will nlot operate to discrimninate against them.
(f) T'hoje en~rgaged in other steps of the economic process Env\e. not
beenl deprived o~f thle right to be heardl pr~ior to approvarl of said Code.
Respectf ully,
Admin~istrator for Indul~stiirl Recoverry.*
FEBrREAR 2 1984.



To effect the policies of Title I of the National Indust~rial Re-
covery Act, th~is Code is established as a Code of 1Fair Comnpet~it~ion
for the Stay M9anufacturing Industry, and its provisions shall be
the standards of fair competition for such industry and shall be
binding upon every member thereof.

SECTION 1. The term. industry as used herein, is defined to mean
the manufacturing, processing, and/or sale by m anu ~fa ct~urer or
processor of stays and trimmings of all kinds in continuous lengths
or otherwise used on shoes or other articles of manufacture, on which
these products, made either from leather, imitation leather, cloth,
or other fabrics, are used, and includes, without limitation, dealing
in such stays and trimmings which are maanufactured or processed
brothers for sale under trade marks, trade nameslc or dle cr1ipt~ions
oter than those of the manufacturer or processor of such stays or
SECTION 2. The term member of the industry "~ includles, but
without limitation, all those engaged in the industry either as an
employer or on his own behalf.
SECTION~~~~ 3Thtem"mpoee as used herein includes any aind
all persons engaged in the induty oee opnaeecp
a member of the industry.
SECTION 4. The term learner as used herein means unskiilled
workers with less than six weeks' experience in the indtustry.
SECTION 5. The term "A-tct and "'Administrator as usedl her~ein
mean respectively Title I of the National I~ndustrial Recovery3 Acct,
and the Administrator for Industrial Recovery.


SECTION 1. NJo employee, including office andc cler~ilal emplol,~yees,
shall be permitted to work in excess of forty hourls in a~ny o~ne wTeek
or eight hours in any twenty-four hour period, pro"vided, hwever
that in special cases of lemergency or where res~tr~ciction of hours of
sk~illedt workers will delaty urgent ser-vice to the tradel~ served1~. byr the
industry during any eight c~onsecutive or non-~on,ecutivie w~eeks of a
six month period (h is eidt ei nJnay1,13)
employee,cs ma~y work not orethn ortytiv hours in anly onelc week(.
Time in ecess~ of eight hours in, any twenltyr-four: hiour period or
forty hours per ~ecek shall be paid on. a basis of time andl one-half.


S~ECTION 2. The pi~rovisions of tht~is articlec shall not apply13 to:
(a) ]Pe~rsns wholC ar~e emloyed!t in. a manager~L('lia or` exeCutllive
capa:cityr whlo eanl thirty five docllnes ($f35i.00) or mlor~e perl weeck, to
outside salesmelnn, or to emp~loyees engaged in, rnemegrgecy- Irepair` w~ork;
provided~ that emloyel~!~ es engagerc d in. emcrrgency repair work0~' shall be
paidl at least onei and one-blaf times their~i normalll rate for all horu~ss
wo~rkedr ini exscess of eight (8) hour~lls in! any1 twn~clty-four~ (24) hour
totl lte trtlrty hrc'ly (ll~~!tl ~~fl~ te uzeperiod or fortyL3 (4I)) hours perl weeck. Reports shall be mlade molnthlyl
h~ourls so wolltrke ini excess of the I1Sinn ximum byI emrn-iIeincy rpa
(b)` Fi1rlcreme andl Engl~ineers whlo sha;ll not be permlllittedl to work1I in
exc~ess of fifty (50) hlour~s perl wekcl n ormal perIiodsl uMi fiftyi-
tive (55) hlourls during peak p~eriods~ as desl~crIibed~ in Section 1 of thlis
art ide.
(c) WaT~tChmenI~I who1 shall nlot be? perm~ittedl to w\iork in. ecscs~i of
isity' (60O) hours ini any one week.
SEcTIrON 3. Thle pro~visio~ns of Sec~tionl 1 of this article shall aIpply
to emnploer~s (owners~, partners, officers. rniherslcl of thec industryy)
engagedr in a produc~tive capacity, b-ut shall no~t apply to mem'llber's
of thIe indu~ lst ry wh1o arIe excl usi vely or wh~olly en n gage in: an ex ec uIt i ve
or adlnunirtrutive capacity.
SCECTION 4. No emlployree shall be permitted to wor~k more1' thanll
five (5) lay~s in any calendar w~ek, except employe-. spc~~ifiedt in
Sect ion 2.
SCjEcTIrON 5. No, employee sha~ill knoing~ly permit anl empllloyee to
wor~k for any time which wh-len totaledl with that altttl readY per~formedi~t
withr another employer or emplloyers, ex~eeds~ the innxinium1111 hoursl'
p~ermiittedl herein.

SCEcTION 1. NO e~lll@loVOP shllnl be p~aid less than at the ra;te of thirt~y-
five cents (3. C) per hour, provided', hiow\ever, that. Jernerici clu'ring a
six (6) wveek; period may be paid at a rate not less than elighlty (I80)
per cent of the mninimiumi rate; Su1ch lear'ner class~, hlowver-I, sall no~t
c~onsist of morec than fi\e (5) per cent of all emloyees,~cr in, any stabL-
lishmlentf. but any establ'ishment~l~ may h~ave at least onei w1~h employ,~,!ee.
SECTIONI 2. Thlisc artiC'le es~tablishes a mlinilsmunl ra;te' of pay13 wh.ichl
shall app~ly, :irrspecct ivr e of whether an ~mp~lloyee is actually comll-
pensatedl on a timie rate, piece-w-ork, or o~ther ba:sis, such pii~cet-w\orkl
or other basic ra;te of comlpen sation n abLo\:e thle mliinimuml.Ii, hoeverI~, is
to be dletermninedl by the 21vera e capac~ity1 of I reglar worers.
SECTION 3. Tle iCodC Authlority 9may pr~eseit for appr~ioval to the
Admiinistrator, after notice and hearing, reconmmen dattc~ios as to up-
ward adjulstmnent s in miinimnum wagts generally or for spcifiedl locnli-
ties or occu~pations, in border to effectualte the pulrpolses of thep Act.
SECTION -1. l'hef6 Shall be an eqjuitabl'e adljustmlent of all wages
above minimumin, and to that endl, within six,~dtyoi~ (60) ld~ das or twio
mionth~s from thec approval of this Codle, teCd uhrt hl
submit for the approval of thle Admninistratorr a proposal for adjulst-
ment in wnages above thie minimum. Upon approval by the Admilinis-
trator, after such hearing as he may prescribe, such propo-al shall


become b:indinlg as a part of this code, provided, however, that in no
event shall prevat\iling hourly rates of pay be reduced.
SECTION 5. Female employees of the skilled class who perform the
same work as male employees shall receive the same rate of pay as
male employees.
SECTION 6. A person whose earning capacity is limited because of
age or physical or mlental handicap or other incapaceity may be em-
playe'd on light or unskilled work, at a wage below the minimum
established~ ~~ byti odi heepoe obtains from the State Au-
thority designated by the Unmited Sae eateto ao
certificate authorizingi his employment at such wages and for such
hours as shall be stated in the certificate, provided, however, that the
number of such employees shall not be In excess of five (5) per cent
of the total number of employees in anly establishment, but any
establishment may have at least one such employee. Each employer
shall file with the Code Authority a list of all suchn persons employed
by him.
SECTION 1. No person under sixteen (16) years of age shall be
employed in the industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which arle haz-
ardous in nature or danlgerous to health. The Code Authority shall
submit to the A~dministrator thirty (30) days after the effective date
of the code, a list of such operations or occupations. Iln any Stat~e
an employer shall be deemed to have ecomlplie~d with this provision
as to age if he shall have on file a certificate or permit dulyr signed
by the Authority- in, such. State e~mpowFered to issue employment or
age certificates or permits showrcing that the employee is of the
required(. age.
S3Ecr.11ow 2. In compliance with Section 7-(a) of th~e Act, it is
(a) That emp~loyees shall have the right to organize and bargaain
collectively through representatives of their own. choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-olrgan~izati on or mn other concerted activities for thie purpose o-f
collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking emlploymnent shall be
Ielrequ~ire as a condition of employment to jomn an~y company union
or to reframn fromln ioinmng, organizing, or assistinlg a, labor org~aniza-
tion of his owFPn choosing,rr and
(c) Tlhat employers shall comply with. the malsimumll hours of
labor, minimumln rates of pay, and other conditions of employment
applroved or prescribed by thne Plresident.
SEC'TION 3. NO empl~loy'er shall rechassify emTployees or duties of oe-
cupn~tions performed, or engag~ce in any other sulbterfug~e so as to
defeant the purposes or provisions of the Act or of this Code: and in
this c~olnnection, employees ~engagred in two or more occu~pations or
positions having d~iffer~lent duties connectedl therewith. onie or more
of which being limiited~ by maximum hours;, shall be classified under
the limited hours position which is limiitedl to thne few-er number of
hours per'' week, and shall not be p~elrmitted to workr a total number
of hours in excetss of thocs~e pr1es~cribed for such position.


SECTION 4. Every emnployer shlall make reasonableprvsofr
the safety~ and health of his emnploree~s at thle place an drig h
hours of their employment.
SECTIoN 5. No pr'ovisiOn in thlis cod'e shall sulper~sede any State
or Federanl law8P whlich imposes on employers mocre stringecnt reqluire?-
ments as to age of employees,~ wage~s, hours of wbTork, or as to safety,
health, sanitary or genlera;l workling condlitionls, or insurance, or fire
protection than. are impllosed by this codle.
SEOTON fj. NO home workrl shall be piermitte~d in this indlustry
after June. 1, 1934.
SEcTION 7. Aill employers shall p)o-t copies of all Inbor provisions
of this codle in conspicurous places accessible to emnploye~tes.


Scrrow 1. There shall forthwcith be constituted a Code Authority
conisisting of the memberss of thes Executive Committee of the Na-
tional Association of Stay M~anufalcturers.
SjECTION 2. In attcition to mlemlber~ship as above providedl, not
more than three mlember~s, wPithou vote, may be, appointed~ by th
Aidm11inIist ra tor.
S~I:Cr~ies 3. Each trade or :industrial association directlyoc~cr in-LU
dlir~c~tly participation h eetino ciiis fteCd u
t h oIi t~y shall (1) impose no inequi~itable restrictions on membme r~ship
andl (2) subnuit to the Adlministr~ator true cop~ies of its articles o
association,, bylaw\s, regulations, anld a ny mendmlentss when madcee
thiereto, together with such other information as to membershipp,
orga~nizaticionnd activities as the Administrator :may deem~ nec~es-
sary to etffectuate th purposes of the! Act.
YECTION 4. In border that thre ~lCoe Authojrity shall at all times
be trulyS representative of th indlustry andl in other respeccts comllplyg
with~ the provisions of the Act, the Admilinistrator maty pr~escr~ibe such
h~earingas as hie maay deeml pr~oper; and thereafter if h~e shall findj that
the Codle Authority is not truly~ representative or does not inl other
respects comply with the provisions of the Act, mnay require an
appror~lia~te modification in the composition andl methodl of selection
of the Cod~e A)uthorityT.
SECTICro 5. M~emberrs of t~he industry shall be entitled to participate
in and share the benefits of the activities of thle Code. A~lluthoity and
to participate in thre selection of thle members thereof by sustaining
their reasonable share of th~e expenses of its admlinistra~tion. Sulch
reasonnble: share of the exrpense of administration shall be deter-
muined by the Code Authiority, subject to review byy the Admninistra-
tor, on-the basis of volume of bua Iness and/or such other factors asi
may be deemed equitable.
SECTION 6j. Nothing contained in this Code shall constitulte the
members of the Code Aulthor~ity par'tners for any purpose. No
shall any member of the Code. Authorityr be liable in anly manner to
anyone for any act of any other member, officer, agent, or emloy~l,!ee
of the Code. Authority. Nor shall any mlem~ber of the Code Atuthur-
ity, exercising rIeasonable diligence in thle conduct of his duties he~re-
und~er, be liable to anyone for an action or omission to act under


this Code, except for his own willful mnalfeasance, or misfeasanlce, or
SEICTION 7. Tlhe Code Au~thority shall have the following further
powers' and duties, and if the Administraltorl shall determine that, any
action of the Code Authority or anly agency thereof is unfair or
unjust or contrary to the public interest, the Adm~inist~torar may
require that such action be suspended for a period of not to exceedi
thirty (30) days to afford an opportunity for inve~t ignt~ion of the
merits of such action and further consideration by such C~od-e Author-
ity or agency pending final action which shall be taken only upon
approval by the Admainistrator.
(a) To insure thre execution of th~e provisions of this code andl
provide for th~e compliance of thne industry thlerew~ithl.
(b) To adopt by laws and rules and regulations~ for its protedlure
and for the administration and enforcement of the Code.
(c) TIo obtain from members of the industry such information
and reports as are required for the Administration. of the Code andl
to provide for submission by ni(111enaber of such information and r~e-
ports as the administrator may deem necessary, and, in addition to
information required to be submitted to the Code Authority, all or
any of the per Ions subject to such code, agr~eementn or license shall
furnish such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3.-(a) of thLe Aict to
such F'ederal and State agencies as the Administrator may designate;
nor shall anything mn any code, agreement, or license relieve any per-
son of any existing obligation to furnish reports to Go elrlnment
agenies.No individual reports shall be disclosed to any other mlem-
ber of the industry or any other party except to such governmlllental
agencies as mazy be designated by the Administrato~r.
(d) To use such trade associations and other agencies as it dteemns
proper for the carrying~out of any of its activities provided for here-
in, provided that nothing herein shall relieve the Clode Aulthorit.y of
its duties or responsibilities under this Code.
(e) To make re~commenmdations to thle Adm~~in~ist~tcr tr for thre coor-
dinationn of the administration of this Code with such other codes,
if any, as may be related to the induslltry~ or affect m~~l~1ember of this
(f) To secure from members of. the industry an equitable and
p~roportionate payment of the reasonable expenses of malintaining
the Code Authority and its activities.
(g) To cooperate with thle Admrinistrator in Iregu~fil~ain the use
of any NC.R.A. insignial solely by those memberllrs of the ind~ucstry who
have assented. to, and are complying with, this Code.
(h) To recommend to the Adm~inistrator further fair tradt-e prac-
tice pr`ovisions to govern members of the induslltrya in thecir~ relations
w~ith each oltherl or with other inldusitril- and to recocl~nunedi to th~e
Administrator measures for industrial phonllingl including ~tubili-
zation of em~ploymentil.


The followving practices f'nn-ltitute unfair melth~ods of competition
of the indus~try3 andi aIre prohibitedl:


SECTION 1. I~na;CCuratQ~ e A ertn'l)isifg.-No member of the irulus~try
sihall pulisl;h alver~tisingr (whecther prinltedl, radio, dlisplaly or of any
other nature), whiich is misleadling or inaccurate in anyl3 ma1teliall
particular, nor shall anyS mlembef~r in any way mlir~isrep.~crese any5 g(oods
(including, but without limitat~ion, its urse, trademaI)rlk, gradcl, quality,
quanltity, origin, siz;e, substancen, characters, nLturel~, finrish, ma:terial,
content or preparation) or credit termsnL, values~i, policies, cervice~s,
or the nlaturle or form of the business conduiicted.
SECTION 2. Pnl8e Biling.-No member of the inldust'y. Shall wcith-
hold from or insert in any quotatio~n or invo-cicec any sfltatement1 that
makes it ina~ccuratet in any material particular.
SenowO 3. Ina~Cu~C~ ratef C Labcf~ lng.--No membelllrtl of the iwxltllFy! S sh'all
bralnd or mark or pack any goods in any manner whliC ch irl CIntende
to or does deceive or mnislead purchasers with !e p-ec~t to the bran,I:I,
grade, quality, quantit, or~igin, s~ize, substance, ceharacter, naturle,
finish, manter~ial content or p~repra'rtion of su~ch goods.
SECTION 4:. InOCturte 8e 'I8/PrfHPF8 t0 CO/Hpt///HTll, IlC.- ~O rliteiner
of the industry shall publish~ advertisi ng which refer~s innlceurar~tely
in any material particular to any comnpetitor or thecir goods,1' priCe ,~
values, credit terms, policies or services.
SECTION 5. IThreats of Lase Su!its.--No member of the imllustry
shall publish or circulate xmljustified or unwarrant~e d threnl~fts of legally
pr~oceedinlgs wihichL tend to or have the effect of hnarn-s4ing~ compllleti-
tors or intimidatting their customers.
SECTIO)N 6. Secret Rebates.--No member of the i ndu~stry3 shall offer
or make any payment or allowanice of a rebate, refundc, commission,
credlit, unearned discount, or exzce~ss allowanncet, whlethler in the form
of money or otherwise, nor shall a mlember of the indlustr~y secretly
offer or ext~endl to any customer any special service or privilegerr
for the purpose of influencing a sale.
SEcTIONu 7. Selling ona Consignin~enit.-No member of the industry
sha~ll ship groodls on consignmnent ~excpt under cir~cumnstances to be
defined by thle Code Authority, where peculiar cir~cums~tances of the
industry require th~e practice.
S~ECTION 8. Brib~ing Employees.-NE o member of the indusit ry shall
giv-e, perm'"it to b~e given, or directly offer to give, anylthiner of valu~e
f'or thte purpose of in~luencingr~ c or r~ewa~rding the actio1 oP any emn-
playoee, agent, or re~presentative of another inl rclationl to th~e busi-
ness of thle emnployer of such emrploye~e, the principal of such agent
or the represented party, without the k~nowledge of %Iucht em1ployer~,
principal or p~ar~ty. Ti revision shall not be construeld to pro-
hibit free. and, general disriuton f rtcle cnu ny ue o
advertising except so far as such articles are act~uallyg usedl fo
commercial bribery as hereinhefore defined.
SECTION 9. Iderli')ferencei/ 904j a A.1fihf'8P Contractfs.-NE o member
of the inldustr~y shasll attempt, to induce the breach of an. existing
contract between a complletitor a7nd his emnploy\ee or c.ustolmer or
source of surpply; nor shall alny such member in~ter'fere with or
obstrulct the pierformance of such contractual duties or services,2
SECTIO~N 10. Coerci~n.-- No member of ther indiusrtrS cshall require
that the purchase or lease of anyv gr(oos he, a prere~quisiee to the
purchase or lease of any' other goods.
a see parag~raph 2 of order approving this Code.


Sec~rmsc 11. Black7;~tllkiing.-o mlember of the industry shall join
or participate with other members of the industry who with such
member consltitute? a substantial per cent of the business in any
specific product or products of the industry, in any trannsaction
known in law as a blackilist, including anly practice or device (such
as a w1hit~elist), which accomplishes thle purpose-of a blackhlist.
S.CI~-Ixl 12. Discoucnts.--Discounts for cash, shall not be in, excess
of five (5) per cent. The general terms of the industry shall be hi\e
(5) per cent tenth of month following purchase;J three (3) per cent
twenty-fifth of month following purchase; net tler~eafter for thirty
(30) dlays, after wIhich interest will ~be charged at the rate of six (6)
per cent per annum~. No post dating shall be permitted.
SECTION li. Edurr, n.i Of 2M87chGan~ise.-Th' e acceptance for credit
of relturnelld goods made according to bona fide orders, shall consti-
tute unfair competitionio. The granting of credit for, or allowance
madeJP for delfective. goodsc or for groods not madep ac~rrrlcrig to specifi-
en;tion)l.s, if claim is not made within fifteen days after receipt of
mlerchandlise by the customer, shall constitute unfair competition.
SECTION 14. Labor Jobs.-No member of the industry shall in-
voice work done on materials dles;tinled for the shnoe indusltry3 on a
basis of labor cost only." When mal~terlial is furn1ish7ed byT the cus-
tomner such material must be billed by the customer to the .manufae-
t~urer at the fair market price.
SECTION 15. BFlanzket aind ~Futurle Orders.-The solicitingc andtr
acceptance of blanket and future orders, with, no specifications as to
timae of delivery, for a quantity of mlerchandtise~t beyond th~e cus-
tomer's reasonable requirements, for the purpose of according to the
customer a lower quantity price than would be justified by: his actual
purchases, is unfair trade practice, and constitutes a violation of
this Code. All blanket and future ord~cersi accepted by any mnember
of the industry mYust be bona fide orders and must provide that the
entire quantity on the order must be accepted b~y the purchasers within
a reasonable time but inl no case to exceeds four months.
SECTION 16. Members of this industry shall abide by the tr~adec
term provisions of the approved code of their sulpplier~s.

ARTIcLE 'VII[II-STaxo nEo ~ALc.oIunhl~SC

SCEc?wc s 1. The Code Authority shnall as soon as practicable, for-
mulate a uniform and standard method of accounting and ceast ingn
for the industry and submit the same to the A~dministrator for his
approval. When it shall have been approved by the Adminisitr~ator
after such notice and hearing as may be necessary ievery mItllembe of
theI industry shll~l use an accounting and costing mcthod which con-
formlls to the principles of and is at least as dtetaliled anld c~ompllete
as such uniform standrdn~c method.
SECTrION 2. After apprIova~l of said cost accounting me~fltho as above
prov,\idedl, no nwmbell~ r shall sell any product of the industry ot. less
than the cost thereof to sulch member1~'1, wVhich cost shall be dletermlined
pu rsuln t to the method of accoulnt i n and cost i ng presccribedl by See-
tion 1 of this arltic~le as soon as such meth-odl is appr~ovedc. Until such
mnethodl of necounting~ is approve,~ ed a schedule of minimum cost fac-
tors shall be pres~cribed by the Code Aulthor~ity subject to the approval


of the A8dministratorr andi .Ilmembes of the indullstr~y shall not sell
below their costs as de~tlermlined' l inl ne<-ordanceIC' w~ith cost fac~to~r con-
tainled in surch s-chuleclll until sulch time as the sllltan1dar method of
necounti ng~ and ccastinlg is approved~~c in ac~cordanc11. e with Section 1.
hereof. Provided, however,1 that all sales of perci hule~ll, olJ.-ole~te or
distessmerhanise somtims clle "j bswhich arec csolld below

ance w~ith eithler malnnerL of Co(,' t determllinatlion providerd for hePrein
shall be reported illInanedite~ly to thI~e Secr~etary.3 of thle Cc nllo Authiority-
in such detail as he may requciriie as to quanirtit~y, nature~l. andi origiin
of the gc.oods sold; and providedrlc further thalt. any member~C~I of the
indlustry3 shall be perm~ittedl to sell below his cost as de~tlerminedl in
accordanllce wFiith Sectionl 1 hereof to meet a compet~itol's pr~ic~e if said
comlpe~ttitor' pric~e is not vio lalt i e of this article.

SsCTION 1~. This Codec and all th~e provisionsl the1creof are expr,!essly
madre subject to the right of thne Presidentlt in awa_(,lrl a ncc wvithl the
prov3\iSionsl of sub-section (b) of Fie:t-ion 10 of thef Au~ct, frOzu time to)
time to nc;lcel or mlodify any ordert1, approval, license, rule, or regu-

SEc'TIlox 2. This Code, exceplt us to provi'\ionlls requllired~l by! the Aic~t,
mnay be modlifiedc on th-e basis of eprstilc~ e or I'hanges~ il c'irCumn-
stances,, such mod~ificani(,tion to be based uponr application to thl~e Ad-
mlinistrastor and such notice and. hearing as hre .shal1~~l pacify, and
(O I.,ec~ome~ efc~ic.tivet cn apprvl~lL\ of thne A.milint';l tratur

Nlo provision of this Code sha~ll be so app~lliedt as to permit monop-

inaite againjlst, .snall enlterprilisesC.
Airni."LE ~1:-nRIcE: IN( RE.1sES

Whereas~1 the policy of thle Act to inc1rlen e real purchasingill power
w~ill be madc~t more,~ dlitheallt, of c~onsulnunaltio~n if price~ts of golods and
rservi(.e- increase as rapidly aIs wag~es, it is recogn~iz edl tha~tt price
increase.-,;~ excep~lt such'1 as may be~ I~requilred to melet ind~ividu~al cost,
shoulll l be dela~:yed. lult, when madle such inl~lcrases should,. so falr as
possible, be Ilimited' to actual add~itionlal inlcrea~~cse in the seller's costs.

This Code .,hull become effec~ctive on the tenthl day~ after its ap-

AppDrovesc.l Code N~o. 3'07.
Registr-y Nco. 1003-01O.

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