Code of fair competition for the rayon and silk dyeing and printing industry


Material Information

Code of fair competition for the rayon and silk dyeing and printing industry as approved on December 21, 1933 by President Roosevelt
At head of title:
National Recovery Administration
Physical Description:
ii, 311-323 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. Govt. Print. Off.
Place of Publication:
Publication Date:


Subjects / Keywords:
Dyes and dyeing -- Silk -- Law and legislation -- United States   ( lcsh )
Dyes and dyeing -- Rayon -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
Includes: 1. Executive order. 2. Letter of transmittal. 3. Code.
General Note:
"Approved Code no. 172".
General Note:
"Registry no. 230-07".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004856998
oclc - 31966401
System ID:

Full Text







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This publication is for sale by the Superintendent of Documents, Gov
Printing Office, Washington, D.C., and by district offices of the BIeaie3
Foreign and Domestic Commerce. ,i:
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 'Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building. : ,
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Rdom 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street. :.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Building.

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Approved Code No. 172

for the


As Approved on December 21, 1933
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SExecutive Order

fAn: application having been duly made, pursuant to and in full
I: compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
o? f Fair Competition for the Rayon and Silk Dyeing and Printing
Industry, and hearings having been held thereon and the Adminis-
trator having rendered his report containing an analysis of the said
i. coI:: jde of fair competition together with his recommendations and
1 idings 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 said act and that the require-
:.. U..nts' of clauses (1) and (2) of subsection (a) of section 3 of the
i" id 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
S otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved, to become effective in place
Sof the code of labor provisions for said industry heretofore approved
by me on July 22, 1933.
; Approval recommended:
:i::::::December 21, 1933.
27202----244--225-83 (311)
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The White House.


S: This is a report on the Hearing of the Code of Fair Competil.-:
tion for the Rayon and Silk Dyeing and Printing Industry. I
The hearing was held, in the Garden Room of the Mayflower::i i ii
Hotel in Washington, D.C.,' on November 10, 1933, in accordance .
with the provisions of the National Industrial Recovery Act. Every
person who filed an appearance was freely heard in public and all :ii
statutory and regulatory requirements were complied with.
Attached herewith is a copy of the Code which was presented
by duly qualified and authorized representatives of the above indus-
try, complying with the statutory requirements, as representing 92
percent of the industry. ::


Pending a Public Hearing upon a Code of Fair Competition the
Rayon and Silk Dyeing and Printing Industry has been operating
under an Executive Order dated July 22, 1933. i
In 1929 the industry employed approximately 25,000 people with
a pay roll of forty million dollars and net sales of 106 million
dollars. In 1932 the number of people employed had dropped to ,;i
20,000 people, the pay roll to 23 million, and the net sales to 53 mil
lion dollars. Actual yardage processed during this period increased,
which shows that the drop in net sales was due to the shrinkage of.....
prices charged for services.
Since the Executive Order of July 22, 1933, went into effect be-
tween 4,000 and 5,000 people have been added to the industry, bring-: :~,
ing the number now employed up to the 1929 level. During the same
period wages have increased approximately 25 percent.
While wages paid are approximately 25 percent higher than in :-i
1929, the prices charged by the industry for its services today are
still approximately 30 percent less than the prices charged for con-
parable services in 1929 and from 30 to 40 percent less than the peak
prices from 1926 to 1929. :


The Code provides for a minimum wage of 45 cents per hour for
male employees, 18 years of age and over, and 35 cents per hour for
female employees (engaged in tasks not heretofore performed by
males in the plant in which such females may bl employed),

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:: 313

IL:ours are limited to 40 hours per week, except with respect to
weertain maintenance and. repair classifications, for which 48 hours
employment is permitted. A maximum of 48 hours per week is
placed upon employees engaged in continuous chemical processes.
i: oductive machinery is limited to (80) hours, except that used
solely for the processing of velvet may be operated not to exceed 120
hovrs: lOrin any one week.
-:f Bicept for the activities of office staff, engineers, electricians, ma-
chinists, firemen, maintenance employees, and watchmen, no plant is
allowed to operate between Saturday at 6:00 a.m. and Monday at
S6: 00 a.m., nor on legal holidays.

I find that:
S 'ie Code complies in all respects with the pertinent provisions of
Title I of the National Industrial Recovery Act, including, without
limitation, subsection (a) of Section 7 and subsection (b) of Section
10 thereof.
The Institute of Dyers and Printers is representative of the Rayon
and Silk Dyeing and Printing Industry, and the bylaws of this asso-
ciation provide no inequitable restrictions to membership.
The Code is not designed to permit monopolies or to eliminate or
oppress small enterprises, and will not operate to discriminate against
S them, and will tend to effectuate the policy of Title I of the National
:i: Industrial Recovery Act.
Accordingly, I hereby recommend the approval of the Code of
Fair Competition for the Rayon and Silk Dyeing and Printing
I Industry.

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EaIMA.niN AnI z, OhMWI &zArM1r M11" n uaE. j U tALLS MU DAJL;LjJhI 44r:::I ;rn


To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code i!
Fair Competition for the Rayon and Silk Dyeing and Printing ia-
dustry, and shall be the standard of fair competition for such i ..
dustry and shall be binding upon every concern engaged t ...her..

1. The term "industry" as used herein shall include the dyei ia
finishing, bleaching, mercerizing, weighting, printing, or other pfle-;:||Bi
easing of rayon, silk, or of any mixture of the same, or of ayi
mixture of goods containing primarily silk or rayon, either in
piece or in the yarn, in the United States, but shall not include .m I
cerns (1) engaged in the weaving of cotton and/or rayon and w ihd
operations are required to be under the Cotton Textile Code; or.i::.. ::i
(2) primarily equipped for, and primarily engaged in, fMlnsh3i :k:l
cotton woven fabrics who may also be engaged in finishing rayin. .
and/or other synthetic fibre fabrics, and shall not include conlcer -.ia,'
not members of the-Institute, who may be engaged in the dyei .
finishing, bleaching, mercerizing, or other processing of rayon andv
other synthetic fibres in the yarn. Provided that any concern wii~.~ '
is a member of the Institute and engaged in the processing of rayou:i
and/or other synthetic fibres in the yarn, shall, as to suuCh ysiirB
processing, be governed as to competitive practices by the supple.i
mentary Code of Fair Practice, to be approved for the textile,
processing industry. t i
2. The term rayon" as used herein'shall include any synthetic:e;:
fibre made from cellulose. All provisions relating to rayon sh :all:
apply to synthetic textiles made from cellulose acetate or any oth6r
substance. .
3. The term "concern as used herein is defined to mean aniy on.e .,
now or hereafter engaged or engaging in this industry as indivlidu' ,!:2
partnership, firm, corporation, or otherwise (aiid shall incltidt.
therein proprietors, partners, officers, or directors when lawfully:
repreenting a concern).
4. The term "employee" as used herein shall include
engaged in the industry in any capacity, receiving compensation nb l
for services, irrespective of the nature or method of payment of 'sucl. :
5. The term "productive employee" as uset herein '.hall include
all employees except engineers, electricians, niachinists, nremen, ;offi::;:
staff, maintenance and transportation crews, and watchmen.
(314) ..
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;M::'i't arm "productive machinery as used herein shall include
plint mach es weighting units, dyeing equipment, and screen
T tables.
I. e term "service and/or "process and/or operations "
a ei:. : jed herein shall include,, dyeing, finishing, mercerizing, bleach-
':.'gk., weighting printing, engraving (when done by any concern in
*.i"i own plants), or any other work, labor, or services done by any
.. The term "Institute" as used herein shall mean the Institute
.:..,Dyers and Printers, a corporation not for pecuniary profit, organ-
.' s Pand existing under the laws of the State of New Jersey.
:The term Board of Trustees" as used herein shall mean the
.%jl ..ofo Trustees of the Institute.
10. The term "member of the industry as used herein includes
." a concern as hereinbefore defined.
1" :1. The term "signatory of the Code" as used herein means any
-iin.ember of the industry who shall voluntarily agree in writing as
prescribed in Article VIII Section 3.
12. The term By-Laws as used herein shall mean the by-laws of
the Institute.
1:::. The terms 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
Title I of said Act.

-: .No employee other than executives, supervisors, and representa-
tives shall be permitted to work more than 40 hours, in any one
"eek ,.except as hereinafter provided.
,'2.. The hours of labor of engineers, electricians, machinists, fire-
:ien; maintenance and transportation crews, and watchmen, shall not
:* i more than 48 hours in any one week, except in cases of emergency.
A" :ny emergency time in any plant shall be reported monthly to the
; .Code Authority.
3. The maximum hours of labor for office staff in the Industry shall
S'be"an average of'40 hours per week in each period of six months;
provided, however, that no office employee shall work more than 48
Sours in any one week, except in cases of emergency. Any emerg-
,::eny time in any office shall be reported monthly to the Code
4". No productive employee shall be permitted to work more than
40 hours in any one week of plant operation as herein defined, nor
r i. :ine than 8 hours in any one day, provided that where productive
i iployees are engaged in continuous chemical processes such as boil-
:il. ofi bleaching, weighting, dyeing, or drying, where goods will be
l::jeotpardized by interruption, such employees may be required to
?; ork an additional 2 hours in any one day; provided further, that
I:::..::r ::vlproduetive emniloyee shall work more than 48 hours in any week
ofI::.::;:plnt operation, as herein defined.
:-*': '5:, No concern shall operate any productive machinery more than
8 : hoes nor: an plant in the Industry more than 96 hours in any
6k bwe it, nbei g g Mnday at 6:00 A.M., and ending Saturday at 6:00

i:" .:E:.:. : :

be operated, except for the aforesaid activities, between t1aBraqiP ,
at 6:00 A.M., and Monday at 6:00 A.M., nor on legal haiiday4 ,n:
During such periods of the year as the Code Authority shall .lmt"
time to time, determine as less-than-peak periods, the Code Auter.i:tl:
may, subject to the right of appeal to the Administrator, fix a leasi
number of hours per week for plant operation, and during .iud .
periods no concern shall, except for'the activities hereinbefore:..: .:t-
cited, operate any plant for more than the number of hours per l
week so fixed by the Code Authority. The Code Authority may" :
modify the provisions hereof for plant operation in any week :in. i:
which a legal holiday occurs, so as to permit employees to make i up
the number of hours lost by reason of such legal holiday.
6. Because of the seasonal character- of the velvet business ai&
notwithstanding the above sections, productive machinery used solely..:
for the processing of velvet may be operated not to exceed 120 hour :
in any one week, between Monday, 6 A.M., to Saturday, 6 A.M :
during an aggregate of sit months in any calendar year, provided
that prior notice be given to the Code Authority of the cominen sei ,.
ment and termination of the three-shift operation.' These hours
shall not be curtailed by the Code Authority during the calendar
years 1934 and 1935, and subsequently only upon notice to the plan s
affected, with the consent of the Administrator. Only such concerns
which have heretofore or which shall within ten (10) days after
the approval of this Code register with the Institute or the Code
Authority as processors of velvet shall be entitled to the benefits of :
this Section, except with the approval of the Administrator.

1. No male employee 18 years of age and over shall receive les :i'
than 455 per hour, nor shall any female employee (engaged in tasksi
not heretofore performed by a male in the plant in which such
female may be employed) receive less than 35 per hour. Male
employees under the age of 18 years shall receive not less than 80 ,.
of the prescribed minimum.
2. This Article establishes a minimum rate of pay, regardless 4: ..
whether an employee is compensated on a time-rate, piecework, ..;.,i
other basis.
3. In no event shall any employer pay any employee a wage rate
which will yield a less wage for a work week of 40 hours than
employee was receiving for the same class of work for a long
week prior to June 26, 1933.
1. No person under 16 years of age shall be employed in the i'::1
dustry, nor anyone under 18 years of age at operationsior occupationl
hazardous in nature or detrimental to health.: ',
2. Employees shall have the right to organize and bargain .eol",i
lectively through representatives of their own choosing, ad sha l
free from the interference, restraint, or coercion of employerss:

: -o their agents, in the designation of such representatives or
dI.organization or in other concerted activities for the purpose
A'iective bargaining or other mutual aid or protection.
iL"' *No employee and no one seeking employment shall be required
is. condition of employment to join any company union or to re-
jIfMi from joining, organizing, or assisting a labor organization of
afii Iwn choosing.
Jfil:4,tinployers shall comply with the maximum hours of labor,
:ilVi:niinum.rates of pay, and other conditions of employment ap-
p proved or prescribed by the President.
&'-Within each State this Code shall not supersede any laws of
:;ir-sh State imposing more stringent requirements on employers regu-
lating the age of employees, wages, hours of work, or health, fire,
or .igeaeral working conditions than under this Code.
l Fr Employers shall not reclassify employees or duties of occupa-
hr:tigons.performed by employees so as to defeat the purposes of the Act.

S'i~-~~ F. further to effectuate the policies of the Act, the Board of
Srstees, to be elected annually by the members of the Institute and
bI: y. other signatories to this Code as hereinafter prescribed in Article
-VIII, is hereby designated, together with not more than three persons
Without vote and without cost to the Industry to be named by the
A4:l ainistrator, as a Code Authority, for the Industry.
S:: : The Code Authority shall be the representative of the Industry
in the administration and enforcement of this Code and shall have,
.:in addition to the specific powers herein conferred, all general powers
'i: M ee sary to such administration and enforcement, including the
fight to delegate authority to committees of its own members or
Otherwise, subject at all times to the right of the Administrator to
veto any action taken by it. Representatives designated by the
Administrator shall be given full opportunity to participate at all
.times in the activities of the Code Authority or committees thereof,
:-.:: -well as those of the Board of Trustees and the executive com-
M.nittees of the several divisions of the Institute.
& The Code Authority may from time to time present to the Ad-
S i nistrator recommendations based upon conditions in the Industry
as they may develop, which will tend to effectuate the operation of
the provisions of this Code and the policies of the Act. Such recom-
i s eadations, upon approval by the Administrator, shall have the
i san e force andeffect as any other provisions of this Code.
4: The Code Authority shall cooperate with the Administrator in
ip: making investigations as to the changing and observance of any
:.-: of the provisions of this Code at its own instance or on complaint
o :l any member of the Industry and shall report its findings and
I.rioi. immendations to the Administrator.
i 5.: W.ith a view to, keeping the President informed as to the ob-
feuAore t or r nonobservance of this Code of Fair Competition, and
a t::i whether the Industry is .taking appropriate step to effectuate
i: the eclared policy of the Act, each member of the Industry will
-ui*h duly certified, reports ,to the Code Authority hereinbefore
iLpided, or to such agency or agencies as the Code Authority may
.C i.;i i!:,

eral statistics for the industry or a general part thereo.t, e00P:i w
a violation of the Code is suspected and the Code A.utlf y
authorized the disclosure in connection with an investigati i
of. Due to the seasonal nature of. velvet processing, prd
ures shall be required from processors of velvet annually'.N
6. Every member of the Industr shall furnish to any gor
agency or agencies, such statistical information as the bs4iB
tor or the Code Authority may, from time to time, deem
for the purposes recited in Section 3 .(a) of the Act, and an r
and other information collected and compiled by the odij
thority, as heretofore provided, shall be transmitted to such gp~*
ment agencies as the Administrator may direct., .
7. The Institute is hereby constitute the agency of the Code i
thority (a) to secure, distribute, and exchange statistical data :
information; (b) to conduct investigations under its direction:; pi
. (c) to take such action from time to time as the Code AiithorityEq.
The Code Authority shall have the following duties and powel
to the extent permitted by the Act, subject to the right of the Adi l
istrator to veto any action taken by it. : .;?
1. To designate representatives to act on a joint committee -wi
representatives of any other code authority of a related iMdust~
having reciprocal provisions in its code, to consider- question.iis i:.
garded by either code authority as of common concern with- refe r'eli
to the effectuation of the policies of the Act (including $questioW
to whether the operations of a given concern come within tIhe
diction of one of the other of the respective codes), and to take
action as they may jointly agree to be appropriate, stibject to..
veto of the Administrator. ....
2. To empower the Institute to secure, distribute, and exi
price information, without, however, disclosing the name 'of .',
Upon the request or direction of the Code Authority, all con
shall promptly forward and file with the Institute such i ta
data and information, which in its judgment may-be- eces..i
quately to inform all concerns regarding market conditionW s mai
any such data and information as may be required for the sup
and operation of the Code of Ethics..
3.,To require each concern to file with the Institute a lit o-t
prices thereafter to be quoted for each of the several services
by it. Concerns shall not quote or make prices other than thc4de
within ten days after filing with the Institute a iodiied .
prices. Any quotation of prices in violation of the provision
shall be deemed a violation of this Code unleO the Code A'
or the price committee thereof shall in advance have a.p.'


S As, when, and if any concern shall file a modified list
oilpnes, any other concern may tile for itself a new list of prices to
&Fome effective simultaneously with the modified list first filed.
4. To establish or participate in the establishment of a Central
Aldg iJ tmnent Bureau for the adjustment t of all service claims by
t'6atoamers against concerns engaged in this Industry, and upon the
i establishment of such Bureau all claims shall be adjusted by said
i;: ii$: r 4eii and not otherwise, except with the consent of the Code
S..-Authority, provided that no concern shall be deprived hereby of the
S:.right to sue in its own name on any claim.
5. To install or cause to be installed throughout the Industry in
thti plant, books and records of each concern a uniform system or
.cost accounting which will result in obtaining by each concern and
i bi'ly the Institute the costs of production exclusive of any allowance
for depreciation or obsolescence.
S. No concern shall sell below cost (exclusive of depreciation and
l9b:solecence) as determined by the Code Authority and approved by
I: Adninistrator pursuant to the operation of the uniform system
9i.f cost accounting when installed and/or operating without the prior
sent of the Code Authority. Prior to the installation of such
Iost-accounting system no member of the Industry shall sell below
.li:cos: t as may be determined by the Code Authority, subject to the
Approval of the Administrator.
I: 6. To adopt a uniform contract which shall be the standard form
Contract for services rendered by the Industry, subject only to
ui ioh changes therein as may from time to time be authorized by the
SCode Authority. Other standard forms of contract appropriate to
: 'respective divisions of the Industry may be adopted by these divi-
". sins! subject to the approval of the Code Authority.
.:" ;:, To appoint a committee to determine the classification of colors
:..r dyeing and patterns for printing. Such classification shall be
thIe standards for the Industry and shall be observed by all concerns
I': engaged in the Industry.
Ji::: & To adopt, subject to the approval of the Administrator, a Code
of .Ethics to eliminate unfair competitive practices. Such Code of
E: hics, when adopted and approved, shall have the same force and
felect .as any other provisions of this Code. Such Code of Ethics
.shall provide that concerns, members of the Institute, engaged in the
processing of rayon and/or other synthetic fibres'in the yarn, shall,
as to such yarn processing, be governed as to competitive practices
!R!. by the supplementary Code of 1I air Practice, to be approved for the
Textile .Processing Industry.
I To define, construe, or interpret the provisions of this Code.
; 1. A:.....ny concern in the Industry which accepts its share of the cost
i':'awad .ponsibility as well as the benefits of such participation, may
ameia. member of the Institute. No initiation or entrance fee shall
ch8arged,but there shall be dues levied on such basis as may,
tin me to time, be fixed by the Board of Trustees thereof, subject
t si .. eto of the Administrator.

4-.4 ": : h .....

shall be entitled to vote as follows?
The average pay rolls for the three calendar or .s
each member, as fixed by the Bylaws, shall be divided W.
ples of $10,000, and each member shall have one vote fore'ii.
full multiple. If any member'has an annual average pay .-i"
less than $10,000 he shall, nevertheless, be entitled to one a.t
any election of Trustees, voting shall be cumulative, as de
the Statutes of New Jersey, provided that not more thin one Ttlat
shall be elected from any one concern. If any member has .an aSu
average pay roll of more than $1,000,000 he shall, nievetBel:s ;
entitled to only one hundred votes.
2. (a) Divisions composed of concerns interested in the pi
or finishing of particular fabrics, or in a particular line of wl.
shall be organized within the Instituite with the approval, or bir e
direction, of the Board of Trustees. Each such division shallsutia
to the approval of said Board of Trustees, concern itself only w.i
that branch of the Industry delegated to it. A concern may lbe k
member of more than one Division and vote in each (such ~a''lt
be allocated among such Divisions as may be permitted by flt
Bylaws). '
(b) Each Division, for the purpose of administering the pro'iM
of this Code, to secure adherence thereto, and otherwise to cart o
within the Division the policies of the Act, shall, subject to thie
proval of the Board of Trustees, be governed by an executive e-eit
mittee of five. Four members of each executive committee shall li
elected by the Division membership, as provided in Section 1 bft
Article. The fifth member of each executive committee. shalE
appointed by the Board of Trustees; provided, however, that:
appointee, or his concern, shall be a member of the Division, and !"
not more than one member of the committee shall be eledteid A
appointed from any one concern. The Secretary of the Ins
shall be the permanent secretary of each executive committee.
(c) If a Division fails to perform its obligations as provided '.'
under, the Board of Trustees shall provide for the administrati
this Code as if said Board of Trustees were the executive '
of the Division concerned, and upon the passage of'a resoli
the Board of Trustees taking over such functions, the executive'
mittee of said Division shall for all purposes ease to exist
such action of the Board of Trustees shall be subject to a
the Administrator.
(d) In the event that with respect to the determination -'
a difference of opinion shall arise between an executive om
and the Board of Trustees, such difference of opinion shilla lbe
termined by arbitration as provided in the Bylaws by three
trators to be selected as follows: One arbitrator shall be
by the executive committee, one arbitrator shall .be selet
the Board of Trustees and the third arbitrator shall beI a.
by such original arbitrators, or, in default thereof, by th
of the American Arbitration Association:' i.
If two or more division executive committee sha"ft ih''Jrfi '
each other and/or with the Board of Trustees as to any i'i. ,:


.in the preceding two paragraphs, or the next succeeding
aph of this article, such difference of opinion shall be deter-
by one arbitrator to be selected by the Board of Trustees
with the division executive committees involved in such dif-
lice of opinion. In the event of the failure to agree within five
upon such arbitrator, the same shall be appointed by the
S silent of the American Arbitration Association.
e" the event that any amendment of this Article is proposed
1the 13oard of Trustees, the same shall be submitted to each of
e division executive committees, and if any division executive
tJU i ittee fails to concur therein, the propriety of such proposed
'..s.dment shall be determined by arbitration, as provided in the
ii ws by one arbitrator to be selected by the Board of Trustees
iMnlly with the division executive committees. In the event of the
ifre to agree upon such arbitrator, the same shall be appointed
thte President of the American Arbitration Association.
(f:: ) In order to prevent any inequalities that may arise in the
~ill.0niomng of this Section 2 and to effectuate the policies of Title I
b.f the Act, the administration of each of the provisions hereof shall
b: bsubjgect to the veto of the Administrator.
S I.Z 'Members of the Industry who are complying with the require-
' i:ant of the Code, and agree in writing either individually, or
,.telugh trade associations of which they are members to abide by
I'he requirements of the Code, and to pay their pro rata share of the
allies e of administration thereof, shall be entitled to a vote in the
h!j!:ltion of the Board of Trustees, and participate in the nomination
J:: O: eadidates for election, on the same basis as a member concern,
~:jiA to the benefits of the activities of the Code Authority and to
iik;u~::e use of the N.R.A. Code insigna. Such nominations and elec-
ltid'i shall be conducted under the supervision of the Code Authority
sim as to avoid any discrimination among members of the Industry.
4. For the purpose of administering this Code, the Code Authority,
ii i'bjeet- to the veto of the Administrator, is authorized to charge
:ieach nc:: mern a percentage of the gross volume of business done by
Piea:i' such concern during the preceding calendar or fiscal year; and
a .nll gw the operation of this Code to make such further charges as
iWmavy e found necessary. In the case of concerns which process
, exwlsi'ely the product of their own looms, the amount to be charged
I:'frie;l h concern shall be determined equitably by its pay roll in con-
iectiotwith operations under this Code.
*i',. Such funds collected for the administration of this Code shall
'be eposited by the treasurer of the Institute in a special account
I used only for defraying the expenses of administration thereof,
di:r ithe reimbursement of the Institute and for such expenses as may
i hrfeafer be incurred in complying with conditions of this Code.
Ar. crm IX
"A. A. iI
t in the case of complaint and/or dispute on any matter affecting
amd.ln tiort n of tie. Code, including a dispute as to the accuracy
iJ: inrmatio:n .rnished pursuant to the provisions of this
t icshall fail or refuse to cooperate with Code Authority,
a.hi' the request- of-the Code Authority, may ap-

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investigation defined as aforesaid shall result in a determitg
a signatory of the Code was not complying with the pimbilts
this Code, the cost of such investigation shall be borne and pa.
by such member of the Industry.,
No concern engaged in the printing of any fabrics in tlis. Iadi
shall prepare, engrave, or print, or submit to an engraver cor p*W
for engraving or printing, any pattern or design which sharIE -
previously have been registered in the United States Patent
or in any other office or bureau approved by the Board of Trultee-'q
The Board of Trustees is hereby empowered by resolutions ttt1j
adopted, to adopt all administrative measures necessary to effeatei
this provision and define and limit the same. : :.
1. Each concern shall register with the Code Authority an invet
tory of its productive machinery as defined in the Code in place as i
December 1, 1933, or then under contract but not installed, ~f i
inventory to be duly certified to as to its completeness and corr
2. On and after January 1, 1934, each concern shall file
monthly with the Institute, setting forth any installation of .
tional productive machinery (new or second-hand) as defined int
Code installed by it, and specifying the extent to which such-i
lation is for the replacement of similar productive machinery aisd sq
explanation of the same, all duly certified.
3. After the effective date hereof, each concern, prior to the
lation of productive machinery as defined in this. Code not the
fore contracted for, except for such replacement, shall file app!
tion with the Institute for transmission through the Code Au.
to the Administrator, stating the circumstances of and the ire
for such installation and shall secure a certificate from the .A
istrator that such installation will be consistentwith ffectuat
policy of Title I of the Act during the period of'the emerged
4. The Code Authority shall examine into such applicati
such certificate and the facts as to the circumstances: of
reasons for such proposed installation and shall transmit to .the
ministrator such application with any statement submitted h|
applicant, together with its report of such examination of th, e
and with its recommendation as to the granting or withholding.
the Administrator of such certificate to such applicant.
by the Administrator inconsistent with such recommendationLi: i
be taken only after notice to the Code Authority.
5. Nothing in Sections 3 and 4 of this Article. shall s
velvet processing machinery during the calendqg year 19I:
after the Code Authority may make such sections apptia
after due notice to all concerns affected. All reports e

.Ertirdl shall be deemed confidential and shall not be disclosed
as .part of general statistics for the industry or a general
Shereof or, when necessary, in connection with an application
'Section 3, hereof, except by order of the Administrator.

'":1. .This Code and all the provisions thereof are expressly made
ect to the right of the President, in accordance with the provi-
|Ih of subsection (b) of Section 10 of the Act, from time to time
Vz ancel or modify any order, approval, license, rule, or regulation
u' ud under Title I of said Act and specifically, but without limita-
7 : to the right of the President to cancel or modify his approval
41. this Code or any conditions imposed by him upon his approval
iB-rteof, but the right of the Institute, or any member of the Industry,
S::object thereto is reserved.
i:'. Such of the provisions of this Code as are not required to be
inteluded therein by the Act may, upon the application of or notice
'to the Institute and with the approval of the President be modified or
eliminated in such manner as may be indicated by the needs of the
.'blic, by changes in circumstances, or by experience; all the pro-
visions of this Code, unless so modified or eliminated, shall remain in
effect until the expiration date of Title I of the Act:.
*. B. In order to enable the Industry to conduct its operations subject
li.i the provisions of this Code, and with those dealing with the Indus-
ti and otherwise to effectuate the purpose of Title I of the Act, sup-
i.emeantary provisions of this Code or additional codes may be sub-
e:dtted from time to time for the approval of the President and/or
*eis Code may be amended or modified with the approval of the
i President.

I provision of this Code shall be so applied as to permit monopo-
oi r monopolistic practices, or to eliminate, oppress, or discrimi-
tes against small enterprises.


:;This Code shall become effective immediately on its approval by
?I. Pr resident.
ApDiprioved Code No. 172.
i3|stry No. 230-07.

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