Registry No. 235-1-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
FOR THE" (
* '. *
L COTTON CLOTHI 'tOGLE',
AS APPROVED ON DECEMBER 30, 1933
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
i~ 1Ir lyEtS Bupwerintendent of Documents. Washineton. D.C. Price 5 cents
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hAtlbat Nfo. 187
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Approved Code No. 187
CODE OF FAIR COMPETITION
COTTON CLOTH GLOVE MANUFACTURING
As Approved on December 30, 1933
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 my approval of a Code
of Fair Competition for the Cotton Cloth Glove Manufacturing
Industry, and hearings having been held thereon and the Adminis-
trator having rendered his report containing an analysis of the said
Code of Fair Competition, together with his recommendations and
findings with respect thereto, and the Administrator having found
that the said Code of Fair Competition complies in all respects
with the pertinent provisions of Title I of the said Act and that
the requirements of clauses (1) and (2) of subsection (a) of Sec-
tion 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to the authority vested in me by Title
I of the National Industrial Recovery Act, approved June 16,
1933, and otherwise, do adopt and approve the report, recommenda-
tions and findings of the Administrator and do order that. the said
Code of Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Huucn S. JOHNSON,
THE WHITE HOUSE,
December 30, 1933.
. .. : :
DECEMBER 6, 1933.
The White House.
SIm: A proposed Code of Fair Competition for the Cotton Cloth
Glove Manufacturing Industry was submitted by the National Asso-
ciation of Cotton Cloth Glove Manufacturers, and a hearing thereon
was held the 7th day of September 1933. Every person who filed a
request for an appearance was fully heard in accordance with statu-
tory and regulatory requirements.
The product of the manufacturers in the Industry consists of
ninety-nine percent Canton flannel, jersey, and leather-palm combi-
nation work gloves and mittens: the remaining one percent consisting
of all-leather work gloves is purely incidental.
The submitting Association, founded in 1913, represents approxi-
mately ninety-four percent of the Industry by volume of business
and forty-six out of sixty-nine manufacturers in the Industry.
The Association imposes no inequitable restrictions on admission
to membership. However, to guard against the possibility of in-
equitable restrictions being imposed in the future, the bylaws of the
Association are now being revised.
RESUME OF CODE AS TO HOURS AND WAGES
The Code provides for a forty-hour week and eight-hour day, ex-
cept that during the seasonal period between July 1st and Novem-
ber 1st, a tolerance of ten percent is allowed to meet peak demand.
Employees in a managerial, executive, or supervisory capacity, in
office or factory, who receive $35.00 per week or more and employees
in outside sales force, will be exempted from the maximum hours
provision. The hours of watchmen and drivers are limited to fifty-
four and forty-eight respectively; watchmen are permitted to work
only six days in any one week. Employees on emergency work are
permitted overtime with payment of at least time and one third for
hoqrs worked in excess of the maximum.
The minimum wages are at the rate of 40 cents per hour for glove
cutters (other than scrap leather cutters); 32 cents per hour for
glove sewers, and 30 cents per hour for other employees not other-
wise provided for (including scrap leather cutters). "Scrap
leather is defined in the Code as leather remaining after palms,
thumbs, and fingers have been cut."
Office employees under twenty-one years of age are guaranteed a
minimum wage of $12.00 per week for forty hours of work; those
twenty-one years of age and over are guaranteed a minimum wage
of $15.00 for a forty-hour week.
SIt is provided that for a learning period of twenty-four weeks
"beginners" shall receive at least the regular piecework rates cur-
rently in effect, with a guarantee of at least sixty-five percent of the
minimum wage. The maximum number of beginners that may
i be employed in this Industry is fixed at ten percent of the total
number of employees.
It is provided that handicapped workers (" substandard ") shall
Receive at least the regular piecework rate currently in effect, with a
guarantee of at least sixty-five percent of the minimum wage. The
maximum number of such employees is fixed at ten percent of the
total number of employees.
The above provisions met with serious objections on the grounds
that they would make it possible for twenty percent of the total
employees to be paid less than the minimum wage prescribed in the
Code. For this reason the Code specifies that the Code Authority
shall investigate the problem of "beginners" and substandards
and report the findings of such investigation to the Administrator, so
that he may determine whether the provisions concerning these
employees shall be changed.
Child labor is prohibited and the minimum wages provided are
guaranteed whether the employee is compensated on a time-rate,
piece-rate, or salary basis.
ECONOMIC EFFECTS OF THE CODE
According to the report of the Research and Planning Division,
9,279 wage earners were employed in this Industry during 1929
and 7,101 during 1931. It is estimated that the forty-hour week
established in this code should increase present employment in this
Industry by 1,420, which would bring the total figure up to approxi-
The same report shows that the average salary received for all
employees in this Industry during 1931 was $8.98 per week. During
1929, a peak year, the average salary for all employees combined
amounted to only $12.25 a week.
The lowest minimum in the Code (for beginners and sub-
standards") is $7.80 for a week of forty hours. "Beginners",
doing the work of glove sewers, will receive at least. $8.15 per
week of forty hours. The lowest minimum wage for employees other
than beginners and substandard is $12.00 per week of forty
I find that:
This Code complies in all respects with the pertinent provisions
of Title I of the Act, including without limitation, sub-section (a)
of Section 7, and Sub-section (b) of Section 10 thereof.
The applicant group is truly representative of the industry, and
the bylaws of the Association, when amended in accordance with
suggestions made by the National Recovery Administration, will not
impose inequitable restrictions upon membership.
The Code as recommended is not designed to promote monopolies
or to eliminate or oppress small enterprises, and will not operate
to discriminate against them and will tend to effectuate the policy of
the Title I of the National Recovery Act.
Accordingly, I hereby recommend the approval of this proposed
Code of Fair Competition for the Cotton Cloth Glove Manufactur-
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR THE COTTON CLOTH
GLOVE MANUFACTURING INDUSTRY
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 Cotton Cloth Glove Manufacturing
Industry and shall be binding upon every member thereof.
1. The term "Industry" as used herein includes the manufacture
of canton flannel, jersey, and leather combination work gloves and
mittens, and such branches or subdivisions thereof as may from
time to time be included under the provisions of this Code.
2. The term member of the Industry includes anyone engaged
in the Industry as above defined either as an employer or on his
3. The term "employee" as used herein includes anyone engaged
in the Industry in any capacity receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such
4. The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
5. The term beginner as used herein is one who has had less
than twenty-four (24) weeks' experience as a glove sewer or glove
cutter in this Industry.
6. The term substandard as used herein means anyone pres-
ently employed in the Industry who, because of advanced years
or mental or physical infirmities, is incapable of producing sufficient
units to earn the minimum wage established in this Code.
7. The term scrap leather as used herein means leather remain-
ing after palms, thumbs, and fingers have been cut.
8. The term President ", "Act ", and "Administrator as used
herein shall mean, respectively, the President of the United States,
the National Industrial Recovery Act, and the Administrator of
1. No employee shall be permitted to work in excess of 40 hours
in any one week or 8 hours in any 24-hour period. During the
period from July 1st to November 1st there shall be a 10% tolerance,
but the average for any calendar year shall not exceed 40 hours per
2. The maximum hours fixed in the foregoing section shall not
(a) Persons in a managerial, executive, or supervisory capacity
in office or factory who receive compensation of $35.00 per week or
more. All such persons shall be listed with the Code Authority as
(b) Outside sales force.
(c) Watchmen, who shall not be permitted to work in excess of
fifty-four (54) hours in any one week or six (6) days in any one
(d) Drivers, who shall not be permitted to work in excess of 48
hours per week.
(e) Employees on emergency maintenance and repair work. Such
employees shall be paid at least time and one third for hours or
fractions thereof worked in excess of the maximum hours herein
3. No employee shall be permitted to work for a total number
of hours in excess of the number of hours herein prescribed for each
day and week, whether employed by one or more employer.
1. No employee shall be paid at less than the following rates
according to classification on the basis of function:
(a) Glove cutters (other than scrap-leather cutters) 400 per hour.
(b) Glove sewers, 321/21 per hour.
(c) Other employees not otherwise provided for herein (including
scrap-leather cutters) 300 per hour.
(d) Office employees 21 years of age and over-at the rate of
$1'.00( per week of 40 hours.
(e) Office employees under the age of 21-at the rate of $12.00
per week of 40 hours.
(f) Beginners (for a learning period of 24 weeks) shall receive at
least the regular piece-work rate currently in effect, with a guar-
antee of at least 63% of the minimum wage provided herein. The
number of beginners employed by any member of the Industry shall
not exceed 10% of the total number of employees employed by him.
(g) Substandard" workers shall receive at least the regular
piecework rates currently in effect, with a guarantee of at least 65%
of the minimum wage herein provided. The number of such "sub-
standard employees employed in any plant shall not exceed at any
time more than 10% of the employees in that particular plant, and
their names, together with the names of all beginners, shall be filed
with the Code Authority.
With respect to beginners and substandards ", the Code Au-
thority shall make reports to the Administrator as hereinafter
2. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
3. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
4. The wage rates of all employees receiving more than the mini-
mum rates herein prescribed shall be equitably adjusted, and within
thirty (30) days after the effective date hereof the Code Authority
shall recommend to the Administrator a proper method for the ad-
justment of wages above the minimum.
The Code Authority shall establish with the approval of the Ad-
ministrator minimum piecework rates for the Industry so that wages
will be equitably adjusted for all productive labor.
ARTICLE V-GENERAL LABOR PROVISIONS
S1. No person under 16 years of age shall be employed in the Indus-
try, nor anyone under 18 years of age at operations or occupations
hazardous in nature or detrimental to health. The Code Authority
shall submit to the Administrator within 60 days after approval a
list of such occupations. In any State an employer shall be deemed
to have complied with this provision if he shall have on file a certifi-
cate or permit duly issued by the Authority in such State empowered
to issue employment or age certificates or permits showing that the
employee is of the required age.
2. Employees shall have the right to organize and bargain collec-
tively 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-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization
of his own choosing, and
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
5. Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employers reg-
ulating the age of employees, wages, hours of work, or health, fire
or general working conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the
7. Each employer shall post in conspicuous places on his premises
full copies of this Code.
8. No 'member of the Industry may knowingly employ as a be-
ginner or apprentice an employee who has previously been em-
ployed in any plant in this Industry more than 24 weeks.
To further effectuate the policies of the Act, a Code Authority
is hereby constituted to cooperate with the Administrator in the
administration of this Code.
, 1. Structure of Code Authority.-(a) The Code Authority shall
consist of six (6) individuals, or such other number as may be ap-
proved from time to time by the Administrator, to be selected as
hereinafter set forth. The Administrator, in his discretion, may
appoint not more than three (3) additional members (without vote),
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one of whom shall be a representative of labor in this industry and
the others to represent the Administrator or such groups or interests
as may be agreed upon (without expense to the Industry).
(b) Five (5) members of the Code Authority shall be selected by
the Trade Association (or Associations) in the Industry. One (1)
member shall be selected by members of the Industry not members
of any Trade Association at such times) and under such rules and
regulations as shall be prescribed by the Administrator.
(c) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall: (1) Impose no inequitable restrictions on membership, and (2)
submit to the Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
(d) In order that the Code Authority shall 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 thereafter if he shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
2. Function of the Code Authority.-The Code Authority shall
have the following duties and powers to the extent permitted by the
Act, subject to the right of the Administrator on review to approve
or modify any action taken by the Code Authority.
(a) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(b) To investigate, or cause to be investigated, on its own initiative
or on complaint filed with it, any violation of this Code by any per-
son in the Industry. The Code Authority may establish appropriate
rules in regard to the obtaining of evidence and conducting hearings
and shall grant to all persons interested in the subject-matter of any
investigation or complaint a fair and reasonable opportunity to
appear and be heard.
After an investigation and hearing, the Code Authority shall pre-
sent a written report to the Administrator which shall include
findings of fact and its recommendations.
(c) To develop and submit to the Administrator for approval
within 30 days after the effective date of this Code a uniform system
of cost accounting designed to make possible the accurate determina-
tion by each member of the Industry of his own individual cost of
production. Upon approval by the Administrator of such system of
cost accounting, complete advice concerning it shall be distributed by
the Code Authority to all members of this Industry.
(d) To present to the Administrator recommendations based on
conditions in the Industry, as they may develop from time to time,
which will tend to effectuate the operation of the provisions of this
(e) To establish, when necessary, administrative divisions of the
Industry and to appoint, with the approval of the Administrator,
appropriate agencies for the administration of this Code in each
(f) To assist in arbitrating disputes arising from any provision
in this Code.
(g) To collect and receive from each member of the Industry
the following monthly reports and at all times keep the Adminis-
trator informed with respect thereto. Such reports shall be filed
with the Code Authority not later than the 15th day of each month
covering the previous month's operations, and no individual report
S shall be disclosed to any other member of the Industry or any other
party except to such governmental agencies as may be directed by
(1) Reports showing number of persons employed, wage rates in
effect, and hours worked during the preceding month.
(2) Reports showing the numbers, in dozens, of canton flannel
jersey, and leather combination work gloves and mittens produced
during the preceding month. Also total dozens of gloves, by classi-
I' fiction, on hand; unfilled orders in dozens by classifications; and
any other information that may be required.
SWithin five (5) days after the effective date of the Code. each
member of the Industry shall file with the Code Authority detailed
report by classification showing the total number of dozens of gloves
Son hand and the unfilled orders on hand in dozens by classification.
(3) Reports showing the names of all persons currently employed
as beginners, together with the date they entered the employ of said
member of the Industry, as well as the names of all persons here-
after employed as beginners, showing the date such beginners were
(4) Reports showing the names of all persons currently employed
as substandard employees and the pay rolls of such employees.
(h) The Code Authority shall conduct a special study of "begin-
aers." The study shall include accurate statistics of the number of
"beginners" employed, their progress (rate of productivity, i.e.,
how long it takes the average "beginner to earn the guaranteed
minimum wage rate or more), etc. The findings of such study shall
be submitted in a report to the Administrator within six (6) months
after the effective date of this Code and the Administrator may
determine whether the provisions of subsection (f) of Section 1
Article IV, of this Code shall be changed, after such notice and
hearing as he may deem necessary.
(i) Within three (3) months of the effective date of this Code
the Code Authority shall report to the Administrator the findings
of a special study of substandards ", so that the Administrator may
determine whether the provisions of subsection (g) of Section 1,
S Article IV, of this Code shall be changed, after such notice and
S hearing as he may deem necessary. Such reports shall include accu-
rate statistics of the number of "substandard employees in this
Industry, the pay rolls of such employees, the average rate of pro-
ductivity (number of units produced by the average "substandard
as compared with the number of units produced by the average
normal employee), etc.
(j) The Code Authority shall make a special steady of the prob-
lem of unemployment in this Industry to the end of reemploying all
those who have been disemployed. The report on this study shall be
sent to the Administrator within 3 months of the effective date of
3. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act.
4. Members of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be deter-
mined 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 deemed equitable to be taken into consideration.
ARTICLE VII-TRADE PRACTICES
1. All sales shall be invoiced at the time of shipment, and such
invoice shall clearly and accurately state all the essential elements
of the sale.
2. Within five (5) days after the effective date of this Code
each member of the Industry shall publish a fully descriptive price
list of all of his prices applicable to that class and subclass of pur-
chasers to whom he sells various types of products, including in such
price lists or in supplementary writings (copies of which shall be
filed with the Code Authority) all of his conditions of sale. Copies
of each subsequent price list and/or supplementary writing shall
be filed with the Code Authority immediately upon publication of
3. Discontinued lines, distress merchandise, or close-outs may be
sold by any manufacturer at less than his published prices, pro-
vided a complete report of such sale is made immediately to the
Code Authority. Invoices of such sales shall be clearly marked
"special prices on account of close-outs."
4. There shall be no price differential for gloves shipped in
bundles as against those shipped in cartons. There gloves are
packaged or bundled in quantities of less than one dozen pairs of
the same size, whether or not such packages are shipped in dozen
cartons or bundles, a charge of at least 2t per dozen shall be made
to cover this extra labor.
5. Where manufacturers are requested by wholesalers to print
the name or plant of their (wholesaler) customers on gloves, the
manufacturer shall make a minimum charge of $1.25 on any quantity
of 50 dozen or less, and on 51 dozen or more the printing charge
shall be at least 2/#f per dozen. There shall also be a charge made
for all cuts and electros.
6. Customers shall be classified as wholesalers and retailers.
For the purposes of this Code, a wholesaler is defined as an
individual, partnership, or corporation who has a proper investment
in his business: who buys in bulk quantities, who maintains a suffi-
ci ently complete stock of gloves to meet all normal requirements, and
*r whose major business is selling to retailers.
A retailer" is defined as an individual, partnership, or corpora-
tion who has a proper investment in his business, who buys in bulk
quantities, who maintains a sufficiently complete stock of gloves to
meet normal requirements, and whose major business is selling to
7. Every employer shall use a cost-accounting system which con-
forms to the principles of and is at least as detailed and complete as
the uniform method of cost accounting to be prescribed by the Code
Authority and approved by the Administrator.
8. The approved terms of discounts, allowances, and conditions
currently in effect from time to time (which terms, discounts, etc.,
may be revised upon the approval of the Administrator) are as
Terms, Manufacturer to Wholesaler.-Terms from manufacturer
to wholesaler shall be 2% cash discount 20 days, with net of 40 days
from date of shipment. No more favorable terms shall be given or
allowed except after June 15 at the manufacturer's option and to
facilitate shipments during the heavy delivery season, invoices may
be dated as September 1 with 2%, 20 days, 40 days net.
Terms, Manufacturer to Retailer.-Terms from manufacturer to
retailer shall be 2% cash, discount 10 days, with net of 30 days from
date of shipment. No more favorable terms shall be given or allowed
except gloves for fall delivery may, after June 1, at the manufac-
turer's option and to facilitate shipments during the heavy delivery
season, be invoiced as of October 1, with 2%, 10 days, 30 days net.
A. Freight Shipments.-Freight charges shall not be allowed on
any shipment or shipments to any purchaser or consignee on less than
100 pounds nor shall there be any concessions or allowance of any
sort in lieu thereof.
B. Express Shipments.-On gloves shipped by express (regardless
of weight) the manufacturer may allow only the equivalent of
freight- charges to any purchaser.
ARTICLE \TIII-UNFAIR TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of this Industry and are prohibited:
1. Intentionally withholding from, or deliberately inserting in the
invoice, or other sales documents, facts which make said documents
false records, wholly or in part, of the transaction represented on
2. The payment or allowances of rebates, refunds, commissions,
credits, or unearned discounts, whether in the form of money or
otherwise, or the extension to certain purchasers of services or privi-
leges not extended to all purchasers of the same class under like
terms and conditions.
. 3. Maliciously inducing or attempting to induce the breach of
an existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance of any such contractual duties or services.
4. Repudiation of accepted orders and other contracts or their
attempted cancellation except for legal cause or by mutual consent.
5. The making or causing or knowingly permitting to be made
or published any false, materially inaccurate or deceptive statement
by way of advertisement or otherwise, whether concerning the
rade, quality, quantity, substance, character, nature, origin, size,
nish, or preparation of any product of the Industry, or the credit
terms, values, policies, or services of any member of the Industry, or
otherwise, having the tendency or capacity to mislead or deceive
customers or prospective customers.
G. The false marking or branding of any product of the Industry
which has the tendency to mislead or deceive customers or prospec-
tive customers, whether as to the grade, quality, quantity, substance,
character, nature, origin, size, finish, or preparation of any product
of the Industry, or otherwise.
7. Shipping or delivering gloves which do not materially con-
form to the samples submitted, and/or which do not conform to the
representations made prior to securing the order.
8. The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representations or by the false
disparagement of the grade or quality of their goods.
9. Directly or indirectly to give or permit to be given or offer to
give. money or anything of value to agents, employees, or repre-
sentatives of customers or prospective customers, or to agents, em-
ployees. or representatives of competitors, customers, or prospective
customers, without the knowledge of their employers or principals,
as an inducement to influence their employers or principals to pur-
chase or contract to purchase from the makers of such gift or offer,
or to influence such employers or principals to refrain from deal-
ing or contracting to deal with competitors.
10. Allowing a commission or extra discount or a concession in
price to a jobber or retailer on his own purchase because he acts as
a salesman or manufacturer's agent for the sale of gloves to others,
if said jobber or retailer receives a salary and,'or a commission.
11. Allowing or offering to allow commissions, allowances, rebates,
extra discounts, premiums, or concessions of any character beyond
those appearing on the published price lists to any customer or any
individual or organization representing or acting for customers or
groups of customers.
12. Copying the exclusive styles, names, numbers, and,'or patterns
originated by a competitor and selling such gloves below the pub-
lished prices of the originator.
13. Allowing credit for claims or deduction before the facts of
such claims or deductions have been established by an authorized
representative of the manufacturer, or until the merchandise against
which the claim has been made as being defective has been returned
to the manufacturer.
Any dispute arising under operation of this provision shall, if
possible, be settled by amicable agreement, or shall be referred to
the Code Authority for arbitration.
. 14. Placing merchandise on any form of consignment or memo-
S random, either directly or indirectly. No further merchandise shall
be shipped on existing consignment accounts and all consignment
no.:. ..mounts must be terminated within 60 days of the effective date of
S this Code.
15. The storage of gloves by any manufacturer in his warehouse
:.:: :, for the account of any one purchaser, unless the sale has been made
pursuant to a bona fide contract, and provided that in no event shall
-the seller defray any of the expenses incident to warehousing.
16. The sending of samples of gloves by manufacturers to any
wholesaler at the wholesaler's request without making the proper
charge therefore; used samples shall not be returned for credit.
17. Deviations from the classification of customers (as listed in
paragraph 6 of Article VII) in the establishment of quotation of
prices, discounts credit terms, allowances or other conditions of sale.
18. The sale by any manufacturer of his product (except dis-
continued lines or close-outs) below his cost except to meet any com-
petitor's price who is operating according to the provisions of this
Code. Cost is to be determined according to the cost accounting sys-
tem referred to in Article VI, Section 2 (b), and Article VII,
19. The sale by any manufacturer of his products on any basis
more favorable than the terms, discounts, allowances, and conditions
provided in paragraph 8 of Article VII.
20. The sale by any manufacturer of his products (except on
discontinued lines or close-outs) to anyone for any purpose, at any
price or on any terms or conditions less than those indicated in his
published price lists (as provided in paragraph 2 under Article
21. Basing quotations of weights for cotton cloth gloves on other
than thirty-three to thirty-four inch flannels.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of the National Industrial Re-
covery Act, from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of 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. After due notice and hearing, this Code, except as to provisions
required by the Act, may be modified on the basis of experience or
changes in circumstances; such modifications shall be based on the
recommendation of the Code Authority or of any interested party
or group or on the Administrator's own initiative and shall become
effective on approval by the President.
ARTICLE X-EXISTING CONTRACTS
Where the cost of executing contracts entered into by this Indus-
try prior to June 16, 1933, is increased by the application of the
elJ[,...... '. "
UNIVERSITY OF FLORIDA
III III1IIlllIH lii i IIIIUlll lll1
3 1262 08486 8180
provisions of the National Industrial Recovery Act, it is equity "i
and promotive of the purposes of the Act that appropriate adjust ::"i
ments of such contracts to reflect such increased cost be arrivedat, .L.:
with the consent of the buyer, by arbitral proceedings or otherwise
and the Code Authority is constituted an agency in effecting sii~
ARTICLE XI-MONOPOLIES, ETC.
No provisions of this Code shall be interpreted or applied in sudlh:
a manner as to promote monopolies, permit or encourage unfair
competition, eliminate or oppress small enterprises, or discriminate
against small enterprises.
ARTICLE XII-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
service increase as rapidly as wages, it is recognized that price
increases, except such as may be required to meet individual cost,
should be delayed, but when made, such increases should, so far as
possible, be limited to actual increases in the seller's costs.
ARTICLE XIII-EFFECTTE DATE
This Code shall become effective on the second Monday afte : its
approval by the President.
Approved Code No. 187.
Register No. 235-1-01.