NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
LADIES' HANDBAG INDUSTRY
AS APPROVED ON MARCH 14, 1934
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Approved Code No. 332
Registry No. 236-1-01
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Approved Code No. 332
CODE OF FAIR COMPETITION
LADIES' HANDBAG INDUSTRY
As Approved on March 14, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE LADIES' HANDBAG
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 a Code of
Fair Competition for the Ladies' Handbag Industry, and hearings
having been duly held thereon and the annexed report on said Code
containinge 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. Johnl.,on, Adinisitrator 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 reiftrer ce said annexed
report and do find that said 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 Code of Fair Com-
petition be and it is hereby approved; provided:
1. That Section 2 of Article IV be stayed until such time as the
Code Authority shall present to the Administrator a definition of
the term semi-skilled employee", which receives the approval of
2. That, in addition to other members of the Code Authority, there
may be appointed by the Administrator or elected by such method
as he may prescribe, in his discretion, not more than three additional
members with voting privilege to be chosen from members of the
industry who are not, in the opinion of the Administrator, adequately
represented on the Code Authority.
HUGH S. JOHNSON,
Administrator for Indu1st 4al Recovery.
Approval recom menrided:
A. D. WHITESIDE,
WASHINGTON, D.C., -
March 14, 1934.
46-473-- 425-73- 34
REPORT TO THE PRESIDENT
The White Hou.ts.
SIR: This is a report of the Hearing on the Code of Fair Coiiipe-
tition for the Ladies' Handbag Industry conducted in Washington
on December 8, 1983. in accordtaince with the Provisions of the
National Industrial Recovery Act.
PROVISIONS FOR HOURS AND WAGES
The Code limits the hours of labor for all employees, except outside
salesmen and pers.-,ons employed in a inmanageriiil or supervi-,ory
capacity earning not less than thirty-five dollars ($35.00) per week.
to forty (40) hours per wSk. Shipping, clerical and office employees
are limited to forty (40) hours per w eek, averaged over a one month
period. Provi.-ion is also made for the appointment of a Special
Committee to determine the extent to which the .forty (40) hour
week tends to eliminate unemployment. This Special Commnittee
will report to the Administrator on or before May 1st its findings.
and simultaneously it will make whatever recolminend:ations it may
feel nef.i---;a ry, keeping in mind the problems of the industry, for the
relief of unemployment.
The minimum wage provided is thirty-five cents (350) per hour,
or fourteen dollars ($14.00) per week, for unskilled worker-', and
forty-five cents (45c) per hour, or eighteen dollars ($18.00) per
week, for semi-skilled workers. The Administrator may, under
exceptional circllu.-itances, and upon such conditions as he may pre-
siribe, permit the employment of learners at rates below the lbaic
minimum. Handicapped workers may also be employed at rates
below the basic minimum, but only under strict reLnilation.
E('ONOMIC EFFECT OF THE CODE
During the year 1933 the average number of persons employed in
the Ladies Haidlba;g Industry was about twelve thoutis,:id (12,000).
The aveirge' nulmIler of hours worked per weck during the year was
forty-eight (48). By reducing the maximum hours to forty (40),
employment will probably be increased by from twelve (1 ) to
fifteen (15o,) percent, and, other things reilaining equal, the iinduls-
try will probably absorb, as a direct result of the operation of the
Code, -..liewhere between fifteen hundred (1500) and two thousand
(2000) additional employees.
Praictically no information regarding" earnings are available, and
in consequlen e no estimate can be nm;de of the fft of the iniiliium
algeI hereinc provided. If for no other rtea-,on, however, ~there will
Sbe a siu'nificnnt ilncrea.se because of the incre;i-.e of employment above
referred to. Total payrolls will beJincreased by at leai-t twelve (12%)
or fifteen (15.-l) percent.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pr .rcld-
ings in this matter;
I find that:
(a) Said Code is well desigiied to 1promijote the policies and pur-
poses of Title I of the National Indu.strial Recovery Act, including
removal of obstructions to the free flow of intiestate and foreign com-
Imirce which tend to diminish the amount there and will provide
for the general welfare by promoting the organization of indu(lt ry for
the purpose of cooperative action among the trade gr,,ops, by induc-
ing and imailtaininig united action of labor and management under
adequate governmental sanctions and supervi-inin, by eliminalting
unfair competitive practices, by priomioting the fullest possible utili-
zation of the present productive capacity of industries, by avoiding
undue restriction of production (except as may be temporarily re-
quired), by increasing the consumpll option of industrial and agricultural
products through increasing purchasing power, by reducing and re-
lieving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved colimplies in all respects with the perti-
nent provisions of said Title of said Act, including without limi-
tating Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciation is an industrial association truly represent ative of the afore-
said Industry; and that the said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate small enter-
prises 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 Code.
For these reasons the Code has been approved.
HUGH S. JOHNSON, Adin listrator.
MARCH 14, 1934.
CODE OF FAIR COMPETITION FOR THE LADIES'
To effectuate the policies of Title I of the National Industrial
Recovery Act the following provisions are established as a Code of
Fair Competition for the Ladies' Handbng Industry, and shall be
the standard of fair competition for such industry and shall be
binding upon every member thereof.
ARTIt LE II-DEINNITIONS
1. The term "industry" as used herein includes the manufacture
of ladies', misses', and children's handhag,, pocketbooks, and
pllr.-'.s, manufactured of any material of any kind or nature. The
term industry" shall not include, however, the manufacture of
allndbags, pocketbooks, purses and mesh bags manufactured in
whole of metal.
2. The term "employee as used herein includes any person
engaged in any phase of the industry, in any capacity, receiving
compensation for his services, irrespective of the nature or method
of paym-elnt of such compensation.
3. The term employer as used herein includes anyone for whose
benefit, or on whose business such an employee is engaged.
4. The term "member of the industry as used herein includes
anyone engaged in the industry, either as an employer or on his
own behalf and either as manufacturer, man u fact ii ring jobber or
5. The terms "President ", "Act ", and "Administrator" as u-sed
herein shall mean respectively the President of the United States,
Title I of the National Inducitrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
1. Except as hereinafter provided, no employee shall be permitted
to work in excess of forty (40) hours in any one w 'k, nor in excess
of eight (8) hours in any twenty-four (24) hour period.
2. No person employed in shipping, clerical, or office work, unless
he is employed in a imriiage'rial or exei.utiv\ capacity and earns not
less than thirty-five dollars ($35.00) per wn.k, shall be permitted to
work in excess of forty (40) hours per week averaged over any one
(1) month period.
3. The provisions of this Article shall not apply to outide
4. Subject to the a.pproa\l of the Administrator, the Code Author-
ity shall de-i.rgnate the hour before which work shall not b1,w1,in and
the hour after which work shall not continue. In the discretion of
the Code Autlhority such opeiiilr and clobi)r hours need not be
uniform throughout the country, Liit jiany be varied to meet varying
needs and conditions.
5. No iiember of the industry shall engage any employee for any
time which when totaled with that already performed with other
nmemiber or members of the industry exceeds the ilaxiliullln permitted
ARTICLE IV-W AGES
1. Exeptt as hereinafter provided, no employee shill be paid at
less than the rate of thirty-five cents (350) per hour.
2. No semi-skilled employee engaged in cutting, framing, paring,
p(cketbo(Ik making and/or operating (except lining operating,
'cementing and/or pa-tinig) employed in the manaufactlure of any of
the products covered by the provisions of this Code, made of any
Material' other than imitation leather, shall be paid at less tlnhn the
rate of forty-five (45) cents per hour.1
3. The Administrator may, under excei.ptional cir'lcumistances, and
uponl such conditions as he may prescribe, permit a member of the
industry to employ learners at rates below the minimum wage herein
4. This Article establishes a minimum rate of pay which shall
apply irrespective of whether an employee is compensated on a piece
rate, time rate or other basis.
5. Suiijt'ct to review by the Code Authority and by the Adcilinis-
trator no employer shall reduce the weekly compensation for employ-
ment now in exces of the minimum wages e-tablished herein, not-
withstanding that the hours worked in such employment may hereby
6. The Administrator may, upon recommendation by the Code
Authority and after full study and investigation by the Code Author-
ity, and after such notice and hearing as he shall prescribe, estab-
lish, as a part of this Code. such basic rates for the more skilled
classes of employees as may be necessary to further effectuate the
purposes of the Act.
7. A person whose working capacity is limited because of age or
physical or mental handicap nayv be employed at a wage below the
minimum e-tablished by this Code under the following conditions:
(a) That they shall be paid proportionately no less than the other
employees in the same factory receive for similar work, but in no
case shall their compensation amount to less than seventy percent.
(70 ) of the amount required by the minimum wage provisions of
(b) That the employer shall at once prepare and transmit to the
Code Authority a list of such excepted person stating name, class
of occupation, wage rate, length of service and reason for exception.
This list shall be revised up-to-date once each month and transmitted
to the Code Authority.
(c) The proportion of excepted per-,ons to total employees at any
time shall not exceed the proportion of such employees on the pay
roll during the week of July 15, 1933.
1 See paragraph 2 (1) of order approving this Code.
(d) The Code Authority shall have the right to investigate and
disallow any such claims for exception subject to review by the
Administrator upon appeal by an employer or employee.
(e) The Code Authority shall report to the Administrator within
three (3) months and from time to time thereafter as to the effect
of the operation of this provision, both generally and in cases of
AkI I .LF, V-GENERAL LABOR PROVISIONS
1. No person under sixteen (16) years of age shall be employed
in the i1nluIstry.
2. Employees shall have the right to organize and bargain col-
lectively, through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employtirs of
Inbler, or their agents, in the designation of such replre.-elitati ves or
in self-organization or in other concerted ai:tivities for the purpose
of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking eiiployilientl shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or auditing a labor organization
of his own choosing.
4. Employi.-rs shall comply with the maximum hours of labor, min-
imum rates of pay, and other conditions of employliilnt approved
or prescribed, by the President.
5. No employer shall reclassify employees or duties or occupations
performed for the purpose of defeating the provisions of the Act or
of this Code.
6. Every employer shall provide for the safety and health of his
employees at the place and during the hours of their elimployment.
The Code Authority shall recommend to the Administrator mini-
imumin standards for the safety and health of employees in this
industry which minimum standards, upon the approval of the
Administrator, shall become effective provisions of this Code.
7. No provision in this Code shall supers.-rde any law within any
State which imposes more stringent requirements on employers as
to age of employees, wages, hours of work, or as to safety, health,
or sanitary regulations, or insurance, or fire protection, or general
working conditions, than are imposed by this Code.
8. All employers shall post complete copies of Articles III, IV,
and V of this Code in conspicuous plaie:s accessible to employees.
9. No provision of this Code shall limolify established practices
or privileges as to vacation periods, leaves of absences, or temporary
;aiall'li. from work heretofore granted to office employees.
10. No iil:. j,1ii of the industry shall give out work to be per-
formed in any h'Hii or dwelling place, ex--ept that this prohibition
shall not apply to handbeading, handcrocheting, or han 'lemiibroid-
erinj', and except that hand sewing at home shall be permitted until
July 1, 10:;4, but .i5all not be permitted thereafter. The Code
klAuthority shall, in conjunction with such state goveiiiiliints and
such depart nl:nits of the Federal Goverinment and such otlhr agencies
as the Administrator may designate, study and inive-tigate the
prublucil of homework in this industry and shall imiake to the
Administrator recommendations for the effective and appropliate
control of .-u.'ih lihomew\ork as is herein permitted. Should the
Administrator find it to the best interest of the iid'i-try or to the
best iniitre.-(- of labor or otherwise necessary to further effectuate
the purpo -is of the A,;t, ]h may further restrict, or wholly 1I'proibit,
the practic.- of homework in this Industry.
11. Any pei-on who shall at any time mannmi':i1u're any article or
articles -iihject to the provisions of this C,,il, shall be bound by all
the provision, of this Code as to all employees enaigi-d in whole or
in part, in such manufacture. In case any employee shall be
er:gagd partly in such in:nliifa'ture and partly in the manufacture of
goods of another character, this Code Iliull apply to such portion of
sui'l employee's time as is applied to the ni;anufactl ire of articles
subject to the pr,\vi-ions of this Code.
12. No nmeInli.,r of ilhr irnlu-try shall give out w,'rk on a contract
ba;-.i unless such work is given out with a written agreement that
the contractor and all other parties to such contract shall comply
with all the pertinent proviions;ll of this Code. The Cold Authority
shall draw up a uniform a'greiinent which shall be used wherever
and whenever work is given out on a contrn;ct basis when such
agreement is approved by the Administrator.
AI:TICLE VI-AD m I N iu -ATIN-o
1. There shall forthwith be constituted a Code Authority con-i.-ting
(a) Eleven (11) representatives of the industry, or such other
number as may be approved from time to time by the Administrator,
to be selected as hereinafter provided.2
(b) One (1) mnicmber, to be appointed by the Administrator on the
nominnati(.l of the Labor Advisory Board of the National Recovery
(c) Such additional members, without vote, not to exccdl three as
the Administrator may appoint to represent such groups or interests
or such governmental agencies and for such periods as he may
2. The repre-.e.ltativ\es of the Industry shall be s,..lected in the fol-
(a) Five (5) members shall be selected by the Associatedl I' ill.ig
Industries of Aniierica, Inc.
(b) Two (2) members shall be -elo-'ted by the National Association
of Lalies' Handhllb Ma ;lnufactu rers;
(c) Two (2) inlibil_.-.r shall be selected by the Industrial Council
of Leather Goods Man:ilfatir'- s, Inc.;
(d) One (1) member shall be seintil.d by the MiHlv,.-t Handbag
and S1iall Leather Wares Association, Inc.;
(e) One (1) member shall be selected by the Ladies' ILindbag
Manufacturers of the Pa,.ific Coast.
3. Each trade or industrial association directly or indirectly pIr-
ticipating in the selection or activities of the Code Authority shall
(1) impose no inqluitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of a--(ociation,
2See paragraph 2 (2) of order approving this Code.
by-laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem neces.-ary to effectuate
the purposes of the Act.
4. In order that the Code Authority hall at all times be truly
representative of the industry and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
as he may deem proper, and may require an appropriate modification
in the method of selection of the Code Authority.
5. Nothing contained in this Code .shall constitute the nilember. of
the Code Authority partners for any purpose. Nor shall any member
of the Code Authority be liable in any manner to anyone for any
act of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority be liable
to anyone for any action or omission to act under the Code, except
for his willful misfeasance or nonfeasance.
6. Members of the Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by a-urnting to and
complying with the requirements of this Code and sustaining their
reasonable share of the expenl es of its administration. Such reason-
able share of the expeni-es of administration shall be determinlled by
the Code Authority subject to review by the Administrator on the
basis of volume of business and/or such other factors as may be
7. If the Administrator shall deteriiiine that any action of a code
authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the Adminii-trator may require that such action
be suspended, to afford an opportunity for investigation of the merits
of such action and further consideration by .uch code authority or
ageiiry pending final action which shall not be effective unless the
All.hiiii-'trator approve, or unless he shall fail to disapprove after
thirty days' notice to him of intention to proceed with such action in
its original or modified form.
8. The Code Authority shall have the following further powers and
duties, the exercise of which shall be reported to the Administrator.
(a) To insure the execution of the provisions of this Code and
to provide, subject to rules and regula.itio(ns established by the Ad-
ministrator, for the compliance of the industry with the provisions
of the Act: Provided, however, that this shall not be construed to
deprive duly authorized governmental agencies of their power to
enforce the provisions of this Code or of the Act.
(b) To adopt a constitution, by-laws and rules and regulations
for its procedure and for the administration and enforcement of this
Code, and to submit the same to the Administrator for his ap-
proval, together with true copies of any aiielndments or additions
when made thereto, minutes of meetings when held, and such other
inforiiiition as to its activities as the AdItinistrator may deem
necessary to effectuate the purposes of the Act.
(c) To obtain from members of the industry such information and
reports as are required for the administration of the Code, and in
addition to information required to be submitted to any Code Au-
thority all or any of the persons subject to this Code shall furnish
such statistical information as the Administrator may dcjl neces-
sary for the purposes recited in Section 3 (a) of the Act, to such
Federal and State agencies as the Admiinistrator may designate;
nor shall anything in any code relieve any person of existing obli-
gations to furnish reports to government agencies. No individual
reports shall be disclosed to any other member of the industry or
any other party except to such governmental agenciesv as may be
dire-t,.d by the President.
(d) To use such trade a-soc.iations zand other agncies as it deems
proper for the carrying out of any of its activities provided for
herein and to pay such trade associations and agonies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions herocf.
(e) To nmake reconumnndations to the Administrator for the coor-
dination of the administration of this Code with such other codes, if
any, as may be related to the Industry.
(f) To secure from members of the indlutry an equitable and
proportionate payment of the reasonable expein-es of maintaining
the Code Authority and its activities.
(g) To establish or designate an agency on planning and fair
practice which shall cooperate with the Code Authority in devel-
oping fair trade practices and industrial planning, including the
regularizatTon and stabilization of employment for the industry.
(h) To initiate, consider, and make recniiinendations for the mod-
ification or amendment of this Code which shall become effective as
a part of this Code when approved by the Administrator after such
notice and hearing as he may specify.
(i) To recommend provisions for a uniform cost and/or account-
ing system for each division of the industry which, upon approval
by the Administrator and after such notice of hearing as shall be
prescribed, shall become a part of this Code. Any member of the
industry shall have the privilege of continuing any cost and/or
accounting system now in use, or of instituting any cost and/or
accounting system suitable and adapted to his particular needs, pro-
vided that the selling price arrived at by the use of any such system
shall not be less than the cost of that particular article which would
be arrived at by the use of the uniform cost and/or accounting sys-
tem recommended by the Code Authority and approved by the Ad-
ministrator. Any such system approved by the Administrator shall
involve only such elements of cost as may be reasonably necessary
to assist in the administration and enforcement of this Code.
(j) To undertake, in conjunction with the Code Authorities of
related industries, an investigation of style piracy and to recmnimend
to the Administrator, within a reasonable period of time, appro-
priate means for the re-gulation and control of style piracy, which
rec(,nimendations, upon the approval of the Admiinistrator and after
such notii,_. and hearings as he may prescribe, shall become effective
provisions of this Code.
ARTICLE VII-NRA LABELS
1. All i irci llii-t, manu fa;itui-ird subjectt to the provisions of this
Code shall bear an NRA label, or authorized substitute therefore,
to symbolize to purchasers of said merchandise the conditions under
which it has been manufactured.
2. Under the powers vested in the Administrator by Executive
Order of October 14, 1933. and under grant of the necessary authority
by him, the Code Authority shall have the exclusive right of this
industry to issue and sell -aid labels to the members thereof.
3. Each label shall bear a registration number especially assigned
to each member of the industry by the Code Authority, and shall
remain attached to all such ltmerchi andise when sold to the retail
4. Any and all members of the industry may apply to the Code
Authority for a permit to purcla-.e and use such NRA labels, which
permit shall be granted to them, but only if, and so long as, they
comply with this Code. The Code Authority shall not refuse the
issuance of labels to any member of the industry on the ground of
noncompliance, unless said Code Authority is, at the time of the
refusal prepared to certify to the Administrator a prima facie ca-se
of noncompliance with this Code, or with valid rules and regulations
of the Code Authiority by the member of the industry. In the event
the Code Authority so refuses the issuance of said labels. a complete
file showing the alleged noncompliance by such niember of the indus-
try shall be certified not later than the day following said refusal to
the Administrator for action by the National Compliance Director,
or by such governmental or administrative agency as the Admin-
istrator may direct.
5. Subject to the approval of the Administrator, the Code Au-
thority shall establlish rules and regulations and appropriate
machinery for the issuance and sale of labels and the inspection,
ex.naination and slupcrviN-ion of the practices of members of the
industry using such labels for the purposes of ascertaining the right
of such members of the industry to the continued use of said labels;
or protecting puirha-ers in relying on said labels; and of insuring
to each individual member of the industry that the symbolism of
said label will be Imaintained by virtue of compliance with the pro-
visions of this Code by all other members of the industry using
6. The charge made for such labels by the Code Authority shall
at all tinimes be subject to supervision and orders of the Administra-
tor and shall be not more than an amount necessary to cover the
actual reasonable cost thereof, including actual printing, distribution,
adminii:-tration. and supervision of the use thereof as hereinabove set
7. The application of the provisions of this Article shall at all
times be subject to rules and regulations issued by the Administrator
in respect thereto.
AiIn ri .- VIII-TniDEI PRACTICE RUIA.!:
1. No iiinow er of the industry shall publish advert i-ilng (whether
prime:!, radio, display or of any other nature), which is ii;-'liadiing
or ina(rlur.I'e in any material particular, nor shall any iiimember, in
any way misrepresent any gi'ods (including but \vitlmut limitation
its lu'e, trade-mark, grade, quality, quantity, origin, size, -iib-t(an:ce,
character, nature, finish, material content or lpr-pi ration) or credit
terms, values, policies, services, or the nature or form of the businiiiess
2. No i neiinber of the industry shall use selling methods or credit
tenrus which tend to d-ceive or mislead the cui-tou'ier or prospective
3. No nubiiilJbr of the indu-'try shall withhold from or iliert in
any quotation or invoice any statement that imake.: it inaccurate
in any material particular.
4. No member of the iindu-t ry shall brandd! or mark or pack any
goods in any manner which is intended to or does deceive or nii-lead
purchasers with re-pect to the brand, grade, quality, quantity, origin,
size, suibl,- tani'e, character, nature, finish, material content or prepara-
tion of sulc goods.
5. No wmeImber of the industry shall publish advertising which
refers inaccurately in any material particular to any competitors or
their goods, prices, values, credit ternis, policies or services.
6. No member of the industry shall publish or circularize unjusti-
fled or unwarranted threats of legal proceedings which tend to harass
or have the effect of harassing competitors or intimidating their
cliAt olrl? -'s.
7. No member of the industry shall give, or permit to be given any
secret payment or allowance of rebate, refund, commission, credit,
or unearned discount, whether in the form of money or otherwise,
or the secret extension to secret purchasers of special services or
privileges not extended to all purchasers on like termni and conditions.
8. No member of the indii-.try shall ship commodities on coIl.ign-
ment or memorandum.
9. No member of the industry shall give, permit to be .gi\'en, or
directly offer to give anything of value for the purpose of influencing
or rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent, or the repre:-ntedl party without the
knowledge of such employer, principal or party. Commercial brib-
ery provisions shall not be construed to prohibit free alnd general dis-
tribultiron of articles clmmonmily used for advertising except so far
as such articles are actually ul-ed for coumiereial bribery as herein-
10. No member of the industry shall attempt to induce the breach
of an exi-tingl contract between a competitor and his customer or
source of r ,ipply; nor shall any ;iv.mbe r of the industry intforflre
with or obstruct the performance of iiuch contractual duties or
11. No member of the industry -111ll grant cash discounts in excess
of 3/10 E.O.M.; anticipation may be allowed at the rate of six per-
cent (i;' ) per annum.
12. No member of the industry shall pay, directly or indirectly,
any part of the advertising expenses of a puirch;iLr, prospective pur-
chaser or their agents.
13. No member of the industry shall accept the return of any
merchandise shipped to a purchaser, nor allow credit therefore, nor
excli;ngi merchandise, after the merchandise has been in the pos-
session of the purchaser for more than seven (7) day, whljere the
agreement of sale has been fully performed by such member.
14. No member of the industry shall sell any merchandise -libje.t
to the provisions of this Code at a price below his own individual
cost as computed by the uniform cost sy-tem provided in Article
VI, Section 8 (i) of this Code when approved by the Admini-trator;
provided, however, that a member of the industry may sell at a
price below his own individual cost in order to neet the competition
of another member who is not himself selling at a price below his
own individual cost, computed on a like basis. This rule shall not
apply to bona fide senni-i;il clearance sales nor to the sale of im-
perfect or actually d;ii-iged or distressed merchandise; subject to
the approval of the Administrator, the Code Authority may estab-
lish regulations to govern such sales.
15. No member of the industry shall dispose of distressed mer-
chandise except upon prior notice to the Code Authority, along with
such information as the Code Authority and the Administrator may
prescribe. General fall competitive items shall not be sold as dis-
tressed merchandise prior to December 26, general spring competi-
tive items shall not be sold as distrc-i-l merchandise prior to
Mother's Day, and gtir iiil summer competitive items shall not be
sold as distr
merchandise at periods other than those herein established.
1. This Code and all the provisions thereof are expre-(.ly made
subject to the right of the President. in accordance with the provi-
-ions of sub-,-ertioni (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order, ap-
proval, licen .e. rule or regulation issued under Title I of the said
Act and specifically, but without limitation, to the right of the
President to cancel or modify his approval of this Code or any
conditions imposed by him upon his approval thereof.
2. This Code, except as to the provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Adiini.iitrator
and such notice and hearing as he shall specify, and to become ef-
fective on approval by the President.
A I;:Tn X-MONOPOLTES, ETC.
No provision of this Code shall be so applied as to pi.-rilit monopo-
lies or monopolistic practices, or to eliliiiilnte, oppress, or di.-1riini-
Iate against small enterprises.
ARTICLE XI-PRICE IN. HE.\:.:s
Whereas the policy of the Act to increase real purchasing power
will be made impossible of coii:-liimnlltion if prices of g,"ds and
services ii,'!,tse as rapidly as w'ig-':, it is recognized that prie-' in-
creases should be delayed. But when made such increases should,
so far as possible, be limited to actual increases in the seller's costs.
ARTICLE XII-EFFECTIVE DATE
This code shall become effective on the second Monday after
approval by the President.
Apegistry' l ui ''l Noo. :-12'.
Registry No. 2.'AG-1 ,ll.
UNIVERSITY OF FLORIDA
SI 1262 0848II II6 803II
3 1262 08486 8032