NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WOMEN'S BELT INDUSTRY
AS APPROVED ON MARCH 24, 1934
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Approved Code No. 41-Amendment No. 1
Registry No. 902-1-01
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Approved Code No. 41-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
WOMEN'S BELT INDUSTRY
As Approved on March 24, 1934
AMENDMENT TO CODE OF FAIR COMPETITION FOR THE WOMEN'S BELT
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an amend-
ment to a Code of Fair Competition for the Women's Belt Industry,
and hearings having been duly held thereon and the annexed report
on said amendment, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amendment and the Code as
constituted after being amended comply 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 amendment
be and it is hereby approved, and that the previous approval of said
Code is hereby modified to include an approval of said Code in its
entirety as amended.
HUGH S. JOHNSON,
Administrator for Indutrial Recovery.
A. D. WHITESIDE,
March 24, 1934.
REPORT TO THE PRESIDENT
The White House.
SiR: The Public Hearing on an amendment to the Code of Fair
Competition for the Women's Belt Industry as proposed by the Code
Authority for this Industry, was conducted on December 21, 1933, in
Room 2062 of the Department ofCommerce Building, Washington,
D.C. Every person who requested an appearance was fairly heard
in public in accordance with the regulations of the National Recovery
Administration. There were present several duly authorized repre-
sentatives of the Code Authority for the Industry and other rep-
resentative members of the Industry.
The Code of Fair Competition for the Women's Belt Industry,
approved on October 3, 1933, contained only two Trade Practice
Article VI, Section C, of this Code provides that the Code Author-
ity shall study provisions relating to Trade Practices and make rec-
ommendations thereon to the Administrator. Proposed Trade Prac-
tice provisions were accordingly submitted to the Code Authority for
approval and form the entire subject matter of this amendment.
In final form this amendment has been approved by the Labor
Advisory Board, Industrial Advisory Board, Consumers' Advisory
Board, and the Legal Division of the Recovery Administration. The
Code Authority has indicated its approval of the amendment on
behalf of the Industry.
The Deputy Administrator in his final report to me on said amend-
ment to said Code, having found as herein set forth and on the basis
of all the proceedings in this matter:
I find that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action among trade groups, by inducing and maintain-
ing united action of labor and management under adequate govern-
mental sanction and supervision, by eliminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (except as may be temporarily required), by increasing
the consumption of industrial and agricultural products through
increasing purchasing power, by reducing and relieving unemploy-
ment, by improving standards of labor, and by otherwise rehabilitat-
(b) The Code as amended complies in all respects with the perti-
nent provisions of Said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present, the afore-
said amendment on behalf of the industry as a whole.
(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, these amendments have been approved.
HUGH S. JOHNSON,
MARcH 24, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE WOMEN'S BELT INDUSTRY
The following provisions are added to Article VI, Section D of the
Code of Fair Competition for the Women's Belt Industry: '" ''
3. No member of the Industry shall ship goods on consignment
except under circumstances to be defined by the Code Authority
where peculiar circumstances of the Industry require the practice.
4. No member of the Industry shall accept for credit or exchange,
returned merchandise, except for defects in manufacture, delay in
delivery, errors in shipment, or failure to conform to specifications.
No returned merchandise shall be accepted for credit or exchange if
returned after ten (10) days from date of receipt by the customer
except on account of defects in manufacture or failure to conform
to specifications not discoverable by reasonable inspection.
5. No extra discounts shall be allowed wholesale houses on sales-
6. No member of the Industry shall pay conunissions to commission
resident buyers or group buying organizations. The provisions of
this section, however, shall not apply to export trade.
7. No member of the Industry catering to the garment trade shall
give sample belts to customers free of charge.
8. No member of the Industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose of influenc-
ing or rewarding any employee or agent or representative of an-
other, in relation to the business of the employer of such employee,
the principal of such agent or represented party, without the knowl-
edge of such employer, principal or party. Commercial bribery
provisions shall not be construed to prohibit free and general distri-
bution of articles commonly used for advertising, except so far as
such articles are actually used for commercial bribery as hereinabove
9. No member of the Industry shall secretly offer or make any
payment or allowance or rebate, refund, commission, credit, un-
earned discount, or excessive allowance either in the form of money
or otherwise, for the purpose of influencing a sale, nor shall a mem-
ber secretly extend to any customer any special privilege or service
not extended to all customers of the same class.
10. No member of the Industry shall, directly or indirectly, pay
for any of the advertising expenses of customers.
11. (a) No member of the Industry shall sell merchandise at a
cash discount in excess of the following:
(1) For the Garment Industry and/or Limited Price Variety
Stores 2/10 E.O.M.
(2) For the Wholesale Trade 3, 10 E.O.M. or 2/10 60 extra.
(3) For the Retail Trade 8/10 E.O.M.
(b) Any member of the Industry who sells his merchandise to two
or more trades as hereinabove defined shall comply with the rules
applicable in this Code to each particular trade.
12. No member of the Industry shall issie invoices covering sales
in which the price, terms and discounts, allowance or other facts
relating to the transaction in any manner are falsely stated.
13. No member of the Industry shall issue or publish price lists,
nor sell or offer for sale belts at prices or on terms which do not
conform with the price groupings when and as hereinafter provided
for. The Code Authority shall investigate and recommend gradu-
ated wholesale price groupings designed to stabilize the industry
which when approved by the Administrator after such notice and
Public Hearing as he shall prescribe shall become a part of this
14. No member of the Industry shall sell any articles, subject to
the provisions of this Code, at a price below his individual cost when
and as determined by and in accordance with the uniform cost ac-
counting system when established by the Code Authority and ap-
proved by the Administrator. However, any member may meet the
price competition of any competitor whose cost under the Code pro-
vision is lower, and may sell dropped lines or distress merchandise
below such cost, provided the facts regarding such sale shall be
immediately reported to the Code Authority.
The Code Authority shall cause to be formulated an accounting
system and methods of cost finding and.'or estimating capable of use
by all members of the Industry. After such system and methods
have been formulated, full details concerning them shall be made
available to all members. Thereafter all members shall determine
and/or estimate costs in accordance with the principles of such
methods. The application of this provision shall be subject to the
approval of the Administrator.
Approved Code No. 41. Amendment No. 1.
Registry No. 902-1-01.
UNIVERSITY OF FLORIDA
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