UNIVERSITY OF FLORIDA
III lllI I II I III 111111111 i I IIII II 12 i08486749 ll1
3 1262 08486 7497
Registry No. 263-1--03
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
SILK TEXTILE INDUSTRY
AS REVISED FOR PUBLIC HEARING
WE DO OUR PART
u.'v. or "'- -.
DO C9 t :
The Code for the Silk Textile Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
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To effectuate the policy of Title I of the National Industrial
Recovery Act, during the period of the emergency by reducing
unemployment, improving the standards of labor, eliminating prac-
tices inimical to the interests of the public, employees, and employers,
and otherwise to improve the condition of the silk manufacturing
industry, to increase the consumption of industrial and agricultural
products by increasing purchasing power, and in other respects, the
following provisions are established as a code of fair competition for
the silk industry:
1. The term "Industry", as used herein, means those concerns
engaged in the warping and/or weaving and/or converting of silk
woven fabrics and such weavers and,'or converters of rayon fabrics
as elect or who have elected to come under the provisions of this
Code. It shall include silk and rayon sewing threads, spun silk,
woven labels, and such other related branches as may from time to
time be included under the provisions of this Code.
2. The term "employers", as used herein, means any persons who
employ labor in the conduct of any branch of the industry.
3. The term "employees", as used herein, means any persons em-
ployed in the conduct of any branch of the industry (including a
proprietor, his family, and his relatives doing production work).
4. The term "productive employee", as used herein, means any
employees in the industry, except office employees, repair-shop crews,
engineers, electricians, firemen, supervising staff, shipping, watching,
and outside crews.
5. The term "productive machinery", as used herein, means all
looms, winders, warpers, coppers, or quillers for the industry; dress-
ing frames for the spun-silk industry; spooling, coning, balling, tubing,
and skeining for the sewing thread and floss industry.
6. The term "person", as used herein, means any individual, part-
nership, association, trust, or corporation.
7. The word "Association", as used herein, means "The Silk Asso-
ciation of America, Inc.", or its successor.
8. The word "Division", as used herein, means any branch of the
industry having a Divisional Committee and operating through the
Employers shall comply with the requirements of the National
Industrial Recovery Act as follows:
1. That employees shall have the right to organize and bargain
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-organization or in other concerted activities, for the purpose of
collective bargaining or other mutual aid or protection;
2. That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
3. That employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
ARTICLE III-HOURS OF LABOR AND MACHINERY HOURS
1. Employers shall not operate on a schedule of hours of labor for
their productive employees in excess of forty (40) hours per week and
they shall not operate productive machinery in the industry for more
than two shifts of forty hours each per week.
2. No other employee (excepting repair-shop crews, engineers,
electricians, firemen, supervising staff, shipping, watching, and out-
side crews) shall work more than 480 hours in any twelve weeks, an
average of 40 hours a week; and not more than 48 hours in any one
3. The maximum hours of labor of repair shop crews, engineers,
and electricians and shall, except in case of emergency work, be 40
hours a week with a tolerance of 10 percent. Any emergency time
in any establishment shall be reported monthly through the Associa-
tion to the General Planning Committee hereinafter provided. A
schedule of maximum hours for outside crews shall be submitted to
the Administrator for approval not later than January 1, 1934.
, 4. Where a State law specifies a lower maximum number of hours
that must not be exceeded, the requirements of such State law shall
govern within that State.
5. The provisions for maximum hours establishes a maximum
number of hours of labor per week for each employee so that under no
circumstances shall any employee be employed or permitted to work
for more than one employer in the aggregate in excess of the pre-
scribed number of hours.
ARTICLE IV-MINIMUM WAGES
1. The minimum wage that shall be paid by employers to any of
their employees-except learners-shall be at the rate of $12 per week
when employed in the Southern section and at the rate of $13 per
week when employed in the Northern section, for forty hours of labor.
The Southern section shall include the States of: Virginia, North
Carolina, South Carolina, Georgia, Tennessee, Alabama, Mississippi,
Louisiana, Texas, and Florida; the words "Northern Section" are
defined to mean the rest of the United States.
2. A learner is hereby defined as one who has served an apprentice-
ship of less than six weeks in the industry and the rate of pay of such
employees shall not be less than 80 percent of the minimum rate.
Learners in any plant shall not exceed 5 percent of the total number of
employees in that plant.
3. The amounts of differences per hour existing prior to July 1,
1933, between the wage rates paid various classes of employees receiv-
ing more than the established minimum wage shall not be decreased.
4. No member of the industry, however, upon obtaining approval
by the Administrator shall be required to make any increase in the
rate of pay per hour to be paid by such member to any of its employees
in any wage district where it appears to the satisfaction of the Admin-
istrator that such increase will result in a rate of pay per hour which
shall be higher than the rate of pay per hour paid to employees doing
substantially the same class or kind of Inbor in the same wage district
by any member of the industry which shall have increased its rate
of pay per hour in accordance with the foregoing paragraph 3 of this
6. Employees who are physically incapacitated may, of their own
volition, waive their right to minimum wages, but no employer shall
employ such workers at less than standard piece rates or at. less than
$8.00 per week for time work or employ more than one such person in
plants employing less than one hundred, or one percent, of the total
employees in any manufacturing establishment.
ARTICLE V--AGE LIMIT
No person under the age of sixteen shall be employed in the indus-
try; provided, however, that where a State law provides a higher
minimum age, no person below the age specified by such State law
shall be employed within that State.
ARTICLE VI-ADMINISTRATIVE AGENCY
1. To effectuate further the policies of the Act, a General Planning
Committee is hereby designated to cooperate with the Administrator
as a Planning and Fair Practice Agency for the industry. The Com-
mittee shall consist of eleven representatives of the industry elected
by a fair method of selection, to be approved by the Administrator,
and three members without vote appointed by the President of the
United States. Such agency may from time to time 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 Code and the policy of the Act.
Such recommendations, when approved by the Administrator, shall
have the same force and effect as any other provisions of this Code.
2. The expenses of administering this Code by the General Plan-
ning Committee for the industry shall be borne by the employers in
such proportions and amounts and in such manner as may be deter-
mined from time to time by such Committee. Failure of any
employer to pay any assessment for a period of thirty days after the
date on which it became payable shall constitute a violation of the
3. Such Committee shall also cooperate with the Administrator in
making investigations as to the functioning and observance of any
provisions of this Code and, at its own instance or on complaint by
any person affected, report thereon to the Administrator. Such
Committee, by a duly authorized representative or representatives,
shall have power to examine all books and records of employers to
ascertain whether they are observing the provisions hereof, and
employers shall submit such books and records to the Committee for
such examination when requested.
4. Such Committee shall not present to the Administrator any
Code or proposed amendment of any Code affecting any "Division"
without first conferring with that "Division" or its representatives,
and if such "Division" does not consent thereto, giving the division
notice of date of proposed presentation.
5. No "Division" shall make any application to the Administrator
for the approval of any Code or amendment thereof without first
notifying such Committee and giving it notice of the proposed date
of presentation and hearing thereon.
1. With a view to keeping the President informed as to the observ-
ance or nonobservance of this Code of Fair Competition, and as to
whether the industry is taking appropriate steps to effectuate the
declared policy of the Act, each employer will furnish the General
Planning Committee, as and when required, with duly certified
reports m substance as follows and in such form as may hereafter be
(a) Wages and hours of labor.-Returns every four weeks showing
actual hours worked by the various occupational groups of employees
and minimum weekly rates of wages.
(b) Machinery data.-Mills having no looms but doing commis-
sion warping, winding, copping, and/or quilling, and other activities
specified under "productive machinery" must furnish every four
weeks such reports and information called for, pursuant to the pro-
visions of this or any amended code. In the case of mills that have
looms, returns shall be made every four weeks showing the number
of looms in place, the number of looms actually operated each week,
the number of shifts, and the total number of loom-hours each week.
(c) Reports of Production, Stocks, and Orders.-Weekly returns
showing production in terms of the commonly used unit, i.e., linear
yards, or pounds or pieces; stocks on hand both sold and unsold
stated in the same terms and unfilled orders stated also in the same
terms. The "Association ", address 468 Fourth Avenue, New York
City, is constituted the agency to collect and receive such reports.
2. Each person shall, from time to time, upon request of the Associa-
tion or the General Planning Committee approved by the Adminis-
trator, furnish any other reports and information called for pursuant
to the provisions or pertinent to the purposes of this or any amended
ARTICLE VIII-COMPETITIVE PRACTICES
1. Each employer shall afford equal terms, prices, and advantages
to all buyers similarly situated, and shall permit no unfair discrimina-
tion to be made in merchandising terms, prices, or practices.
2. No employer shall take orders to manufacture merchandise
3. Where goods are shipped on consignment or memorandum and
the buyer does not return them within ten days, they shall be invoiced
as of the date of shipment and shall be paid for accordingly.
4. Any dispute or claim on finished merchandise must be made in
writing within ten working days after receipt of goods and no claim
or allowance shall be made for such goods after they have been cut.
5. It shall be unfair competition to place any order for printing or
Jacquard weaving or to do any printing or Jacquard weaving of any
design not registered with the Textile Design Registration Bureau
of The Silk Association of America, Inc., or to do any work on any
registered design except with the written consent of the person making
the registration. (Sewing threads, tie fabrics, and flosses are
6. All transactions between buyers and sellers in excess of $500.00
shall be confirmed by signed contracts. It is the purpose of this
section that records, documents and book entries shall accurately
reflect all such transactions and that no such entry or document
usually made in the normal course of business shall be omitted in
whole or in part, so that the original transaction and all modifications
thereof will be accurately reflected in, and easily ascertainable from
an inspection of, available books and documents.
7. Selling terms, etc., shall be as per Schedule A annexed.
8. Where the costs of executing contracts entered into in the in-
dustry prior to the effective date of this Code are increased as a result
of the operation of the provisions hereof it is equitable and promotive
of the purposes of the National Industrial Recovery Act and this Code
that appropriate adjustments of such contracts to reflect such in-
creased costs be arrived at by arbitration proceedings or otherwise;
and that where performance of orders accepted prior to the effective
date of this Code be delayed or prolonged as a result of the operation
of the provisions hereof appropriate additional time for performance
should be sought by arbitration proceedings or otherwise. The
Association is hereby constituted an agency to assist in effecting such
adjustments where such adjustments are not agreed upon by the
ARTICLE IX-AMENDMENTS, MODIFICATIONS, AND ADDITIONS
1. Such of the provisions of this code as are not required to be
included therein by the National Recovery Act may, with the approval
of the President, be modified or eliminated in such manner as may be
indicated by the needs of the public, by changes in circumstances, or
by experience: all the provisions of this code, unless so modified or
eliminated, shall remain in effect until the expiration date of Title I
of the National Recovery Act.
2. In order to enable the industry to conduct its operations subject
to the provisions of this code, to establish fair trade practices within
the industry and with those dealing with the industry, and otherwise
to effectuate the purpose of Title I of the Act, supplementary pro-
visions of this code or additional codes may be submitted from time
to time for the approval of the President.
3. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance wilh provisions of
Clause 10 (b) of the National Industrial Recovery Act, from time to
time to cancel or modify any order, approval, license, rule, or regula-
tion, issued under Title I of said Act, and specifically 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.
ARIICLE X-EFFECTIVE DATE
This Code shall become effective on the second Monday following
its approval by the President.
SCHEDULE A OF THE CODE OF FAIR PRACTICE FOR THE SILK
BROAD GOODS WEAVERS AND CONVERTERS
For raw broad goods, terms shall not exceed 60 days. For finished
broad goods, the terms shall be either 6/10/60 or a maximum of 8/10
e.o.m. Additional dating as of the first of the following month may
be given on any merchandise delivered after the 25th of the month,
and no anticipation shall be allowed at any rate higher than 6% per
annum. No optional terms to be given.
For wholesale manufacturers of hats in the United States of
Terms, 10/10, e.o.m.; 25th of the month as of the first of the fol-
lowing month; payment to be made in currency, check, or if made
in trade acceptance or note, interest must be paid at the rate of 6%
per annum; anticipation to be at the rate of 6% per annum.
All sales shall be made on the basis of f.o.b. shipping point. Six
months after date of contract, any goods undelivered shall be billed
and such billing shall constitute delivery.
All sales of ribbons shall be on the basis of 6/10/60 or 7/10 e.o.m..
or its equivalent, shipped after the 25th of the month as of the first
of the following month. Anticipation at the rate of 6% per annum,
No seasonal dating shall be granted. All past due bills shall bear
interest at the rate of 6%. No shipments shall be on consignment
or memorandum. No goods shall be redyed or reprocessed free of
charge. No exchanges shall be made. No tender of return shall be
accepted after ten days, and all disputes must be settled immediately.
Returns shall be accepted only for manufacturing defects or if mer-
chandise was originally submitted as sample. All merchandise shall
be shipped f.o.b. shipping point. The rule in the General Code in
regard to confirmation of all orders by signed contracts shall apply
only to orders for future delivery in excess of three weeks. Where
a contract covers the sale of goods in which the assortments are not
determined at the time of sale, there must be three weeks time
allowed for delivery to be made. If the assortments are not given,
seller shall bill the customer on the contract date of delivery for the
full value of the merchandise covered by the contract.
SEWING THREADS AND FLOSSES
No goods may be consigned or shipped on memorandum. No
dating may be allowed. The goods of other sewing thread and floss
manufacturers must not be purchased or exchanged for the purpose
of substitution. Cash discount, 2%, 10 days, e.o.m., may not be
exceeded. No protection to retail accounts on their unsold stocks
in case of decline in price. Stock protection to Notion Jobbers on
30-day purchases previous to date of decline is proper, provided such
S purchases do not exceed the stock on hand at the time of decline.
Should the purchases amount to more than the stock on hand, the
protection will be stock on hand.
; Shipping on memorandum and billing at a later date constitutes
S an unfair method of competition as it defeats uniform selling terms.
Any goods invoiced on memorandum which are subsequently invoiced
regularly shall be billed on the date of shipment on memorandum.
At the beginning of the spring season, spring goods are to be dated as
December 1, and at the beginning of the fall season, fall goods are
to be dated as July 1. On finished merchandise, the maximum terms
are to be 6%, 10 bays, and 60 days dating, or a maximum of S%, 10
days, e.o.m., goods shipped after the 25th of the month to be dated
from the first of the following month.
Maximum discount shall be 2%, 10 days, e.o.m. Allowance for
cooperative advertising and sale promotion between buyer and seller
may be permitted on novelty yarns. Purchasers shall not be allowed
any commissions, bonuses, rebates, subsidies, or privileges of any
kind, whether in form of money, services, or otherwise. No close-out
sales shall be made without the permission of the Divisional Planning
6/10/60, no e.o.m. dating. Anticipation at the rate of 6% per
annum. Interest shall be paid on deferred deliveries at the rate of
6% per annum. Not more than sixty days shall elapse between deliv-
ery of samples and delivery of merchandise. No orders for sample
lengths shall be taken without orders for goods for later delivery.
No extra dating shall be given on samples. No member of the Tie
Silk Industry shall ship merchandise on consignment or memorandum
except to his duly accredited agent.
Shipping on memorandum and billing at another date constitutes
an unfair method of competition and no goods shall be billed more
than sixty days after date of shipment. Terms, 2/10 e.o.m.
THROWN SILK, THROWN RAYON, AND SYNTHETIC YARN DEALERS
All transactions between buyers and sellers shall be confirmed by
signed contracts and subject to following terms: To Hosiery Mlanu-
facturers, 1/10 e.o.m., net 60 days' trade acceptance from date of
shipment; to Weavers, 10 days, 1%, net 60 days' trade acceptance
from date of shipment. Interest shall be paid on deferred deliveries
at the rate of 6% per annum.