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deale No4125-Ammcmaendmn No. 1
Registry No. 280--1-401
WE Do OUR PARE
GOiVERNMENT PRINTING OFFICE
CODE OF FAIR COMPETITION
tWH11 OLSTERY AND DRAPERY
r;.AS APPROVED ON FEBRUARY 6, 1935
T'his publication is for sale by the superintendent of Documents. Government
Printing Office, Washington, D). C., and by district oilices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlalnta, Ga.: 504 Post Office Building.
Birminghamu, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Building.
C'harleston, 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, Miich.: 801 First National Bank Building.
Hlouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas Citly Mo.: 1028 Baltimore Avenue.
Los Angelds, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Mlinneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsblurgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street. ;
San Francisco, Calif.: 310 Custombouse.
Settle, WVash.: 809 Fed'eral Office Building.
Approved Code No. 125--Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
'UPHOLSTERY AND DRAPERY TEXTILE
As Approved on February 6, 1935
APRrovrNo AMENDMENT OF CODE OF FAIR ClOMPETITION FOR THE
UPHOLSTERY AND DRAPERY TEXTILE INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an amend-
ment to a Code of Fair Competition for the Upholstery and Drapery
Textile Industry, and hearings having been duly held thereon and
the annexed report on said amendment, containing findings with re-
spect thereto, having been made and directed to thePresident:
NOW, THEREFORE, on behalf of the President of the Uniited
States, t~he National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise,
does hereby incorporate, by reference, said annexed report and- does
find that said amendment and the Code as constituted after being
amended comply in all respects with the pertinent poiin n
will promote the policy and purposes of said Title of adAt n
does hereby order that said amendment be and it. is hereby approved,
and that the previous approval of said Code is hereby amended to
include an approval of said Code in its entirety as amended with
the exception that:
The approval and the amnendmnent of Subsections (d), (f), ()
(i), (j), (1) and (n) of Section 1 of Article V'III shall take efet
twenty (20) days from thle date hlereof, unless good cause t~o the
contrary is shown to the National Industrial Recovery Board before
that time and the National Industrial Recovery Board issues a,
subsequent order to thiat effect.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By WI. A. H AnnIzNe, Adm1.j1iiSftative O~f)Fer.
PRENITIS8 L. COONLEY,
W(TsmINCONo, D. C.,
February 6, 1935.
1 141 4"---1573--24----35 t1b
REPORT TO THtE PRESIDENT
The White House.
Sm: This is a report on a public hearing on an amendment to
the Code of Fair Competition for the Upholsteryr and Drapery
Textile Industry held on November 14, 1934 in Room 127 of the
WTillard Hotel, Wa~shington, D. C. The amendment which -is at-
tached was presented by duly authorized representatives of the
Industry, complying with statutory requirements and being the
same agency that originally submitted the Code.
In accordance with customary procedure every person who had
filed a request for appearance was freely heard mn public and all
statutory and regulatory requirements were complied with.
The following is a r~sum8 of the amendment:
Section 5, which defines member of t~he Code is deleted since
the present amendment includes a mandatory assessment provision.
Section 6 defines the National Industrial Recovery Boar~d.
Section 1 establishes maximum hours for certain classes of em-
ployees now excepted.
Se'ction 3 enumerates those employees excepted from maximum
The change in Section ,5 is merely a verbal alteration, "IBoard"
being substituted for "LAdministrator.")
The new Section 7 of Article IV is the standard provision con-
cerninga handicapped workers.
The changes in Section 1 are merely verbal alterations, Board "
being substituted for "Administrator wherever it occurs.
An addition to Section 1 provides that proposed amendments to
the Code shall first be referred to the Industry.
The changes in Sections 2, 3 and 4 are merely; verbal alterations,
"' Board being substituted for "A~dmi'nistrator"whrvriocus
The renumbering of Section 6 as Section 12 is merely an editorial
Sections 6 and 7 are deleted since they are in confict with certain.
provisions of the present amendment.
A new Section 6 contains the standard provision concerning the
keeping of records of transactions in the Industry.
A new Section 7 contains the standard provision concerning sub-
mission of' statistical information to the National Industrial
A new Section 8 contains the standard mandatory assessment
A new Section 9 contains the standard provision for the payment
of equitable contribution to the expenses of maintenance of the Code
A new Section 10 contains a standard clause concerning expenses
in excess of the amount of an approved budget.
A new Section 11 defines the liability of members of the Code
The existing Article. VII is deleted and a new Article VII is sub-
stituted therefore which contains th~e standard provisions concerning
cost finding and destructive price cutting.
.-The existing Article VIII is deleeted and a new Article VIII is
substituted therefore which contains provisions to be included in sales
contractss and order blanks.
The existing Section 5 is deleted and a new Section 5 substituted
therefore concerning the distribution of sample cuttings.
The changes in Section 6 are merely verbal alterations, "L Board "
being substituted for "LAdm~inistrator in the first and second
Section 7 is deleted since this provision is no longer oper~at~ive and
a new Sec ti on 7 is substituted t herefor which concerns false
The changes in Section 6 are merely verbal alterations '' his and
"L he being deleted and "' t~he Board's "and "L the Board' eing sub-
Section 101 is the sitandard' clu1se providing for the establishment
of standards of safety? and health.
The Deputy Administrator in his final report t~o the National In-
dustrial Recovery Board on said amendment to said Code having
found as hereinafter set forth on the basis of all the proceedings in
The National Industrial Recovery Board finds that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act, including removal of obstructions
to the free flow of interstate and foreign commerce which tend to
diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present pro-
ductive capacity-of industries, by avoiding undue restriction of pro-
duction exceptt as mlay be temporarily required), by increasing the
consumption of industrial and agricultural products through in-
creasing purchasing power, by reducing and relieving unemploy-
mnent, by improving the standards of labor and by otherwise r~ehabil-
(b) The Code as amended complies in all respects with the
pertinent provisions of said Title of said Act, including without
limitation Subsection (a) of Section 3, Subsection (a) of Section
7,and Subsection (b) of Section 10 thereof;
(c) The Code empowers the Code Authority to present the
a foresa id amendment on behalf of the Industry as a whole.
(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed to
and~ will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of th~e economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons this amendment has been approved.
For the National Industrial Recovery Board:
W. A. Ha~nnian
FEBRUARY 6, 1935.
AMENDMENT TO CODE OF~ FAIR COMPETITION FOR
THE U-PHIOLSTERY ANTD DRAPERY' TEXTILE IN-
Dlelete Section 5.
Section 6. Renumber as Section 5.
Delete Section t. Substitute therefore Section 6 as follows:
SECTION 6. The term Boa~rd as used herein means the Na-
tio-nal Industrial Recovery Board appointed by the President under
the National Industrial Recovery Act.
'" Renumber Sect~ion 8 as Section 7.
Renumber Section 9 as Section 8.
Renumber Section 10 as Section 9.
Delete Section 1 andi substitute therefore a new Section 1, as
SECTION 1. No engineer, electrician? cleaner, firemian or employee
working on a repair shop, shipping or outside crew, shall be per-
Initted to work more than 40 hours per week, with a tolerance of
ten percent; provided, however, that inl the case of emergency mnain-
tenance or emergency repair work, involving breazkdownls or protec-
tion of life or property, the foregoing maximum hours shall not. ap-
p~ly, and provided further that all hours worked in excess of 40
hours per week shall be compensated for at the: rate of time and one-
third. Emergency hours worked shall be reported monthly to the
Code Authority provided for in Section 1 of Article VI.
(a) Watchmen shall not work or be permitted to work more than
56 hours per week, provided, however, that such emp~loyees shall have
one day off in seven.
Section 3 is amended in its entirety as follows:
SECTION 3. No other employee, except outside sales persons, and
those employed in a managerial capacity earning in excess of $35.00
per week, shall be permitted to work in excess of 40! hours per week.
SECTION 5. Delete "LAdministrator in the last line of Section 5
and substitute therefore "' Board ".
ARTICLE IV WAGES
Add a new Section 7 as follows:
SECTION 7. A person whose earnings capacity is limited because of
age or physical or mental handicap or other infirmnity miay be em-
ployed on light work at a wage below the minimuum established by
this Code if the employer obtains from the State Authority desig-
nated by the United States Department ofltabor a certificate ~athor-
izing his employment at such wages and for such hours as shall be
stated in the~ certificate. Each employer shall file monthly with the
Code Aluthorityv a list of all sulch persons employed by himt, showing
the wagaes paid to, and the maxrimumn ours of work for such e~m-
SF.cTION 1. Delete "Administrator wherever it occurs in this Sec-
tion and substitute therefore '" Board." Substitute a semi-colon for
the period at the end of the third sentence of Section 1 and add the
provid-ed, how-ever, that proposed amendments to the Code shall
not be submitted to the Board until they first have been referred to
the Industry at a general meeting or by a mail vote.
The Section as amended is as follows:
SECTION 1. To further effectuate the policies of the National Indus-
trial Recovery Act., a Code Aut.hority is hereby set up to cooperate
w~it~h the Board in the admiinistration of this Code. Such Code Au-
thority shall consist of not less than 8 nor more than 11 members, 8
of whomi shall be r~epresentat~ives of the Industry elected by a fair
method of selection to be approved by the Board, and 3 of whomn
without vote mnay be appointed by the Board. Such agency may
present to the Board recommnendationsy based on conditions in the
Industry as they may develop which will tend to effectuate the opera-
tion of the pr~ovisions of this Ciode and the policies of the National
Industrial Recovery Alct.; provided, however, that proposed amendm-
mentss to the Code shall not be submitted to the Board until they first
have been referred to the Indus~try at a general meeting or by a mail
vote. Sucrh recommendations, when approved b~y the Board, shall
have the same force and effect, as any other pr~ovlsions of this Code.
Sections 2, 3 and 4. Delete "'Administrat~or wherever it occurs in
these S~ections and substitute therefore "' Board ".
Renumber existing Section 6 as Section 12.
Delete Sections 7, 8 and 9 and substitute the following new sections
S~ECTION 6. Each member of the Industry shall keep accurate and i
complete records of its transactions in t~he Industry whenevb* such
records may be required under any of the provisions of this Code, l
andt shall furlnish~ accurate reports based upon such records concern-
ing any of such activities when required by the Code Authority or
the Board. If the Code Authority or the Board shall determine that
substantial doubt exists as to the accuracy of any such report, so much
of the pertinent books, records and papers of such member as may
be req uirIed~ for the verification of such report mnay be examined by an
impurlltial agency, agreed upon between the Code Aluthority and such
memberr, or, in the absence of agreement, appointed by the Board.
In no case shall t~he facts disclosed by such examination be made
available in identifiable for~m to any competitor, whether on the Code
Authority, or otherwise, or be given any other publication, except
such as may be required for the proper administration or enforcement
of the provisions of this Code. l
SECTION 7. In addition to information required to be submitted to
the Code Authority, members of the Industry subject to this Code
shall furnish such statistical information- as the Board may deem
necessary for the purposes recited in Section 3 (a) of the Act to
such Federa~l and State agencies as the Board may designate; pro-
vided that nothing in this Code shall relieve any member of the
Industry of any existing obligations to furnish reports to any Gov-
ernmenit agency. No individual report shall be disclosed t~o any other
member of the Industry or any other party except to such other
Governmental agencies as may be directed by the Board.
SaCTrrow 8. It being found necessary, mn orders to support the ad-
ministration of this Code and to maintain the standards of Fair
Competition established hereunder and to effect~uate the policy of
the Act, the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code ;
(b) To submit to the Board for the Boardl's approval, subject to
such notice and opportunity to be heard as the Board may deem nee-
essary, (1) an itemiized budget of its estimated expenses for the
foregooinga purposes, and (2) an equitable basis upon which the funds
necessary to support such budget shall be contributed by members of
(c) After such budget and basis of contribution have been ap-
proved by the Board, to determine and obtain equitable contribution
as above set forth by all members of the Industry, and to that end,
if necessary, to institute legal proceedings therefore in its own
SECTION 9. Each member of the Industry shall pay his or its
equitable contribution to t~he expenses of the maintenance of the
Code Authority, determined as her~einabove provided, and subject
to rules and regulations per~tainingr thereto issued by the Board.
Only members of the Industry comrplying with the Code and con-
tributing t~o the expenses of its administration as hereinabove pro-
vided, (unless duly exempted fromt makling such contribution,) shall
be entitled to participate in the selection of members of the: Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
SECTION 10. The Code A'uthority shall neither incur nor pay any
obligation substantially in excess of the amount thereof as estimated
in its approved budget. and shall in no event exceed the total amount
contained in the approved budget, except upon approval of the
Board; and no subsequent budget shall contain any deficiency itemi
or expenditures in excess of prior budget estimates except those
which the Board shall have so approved.
SECT~oN 11. Nothing contained in this Coode shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in anly manner to
anyone for any act of any other member, officer, agent or emlployree
of the Code Authority, nor shall any member of the Code Authority,
exercising reasonable diligence in the conddet of hiis duties her~eiddBter-
be liable to anyone for any action or omission to adt under this 0846i;
except for his owon wilful' malfeasance or non-fea~sance.
ARTICLE VTII-UwPJRIro CosT AccouNTINo
Delete Article VII and susbtitute therefore a new Article VII as :
AuRICLE VII 08OT FINDING AND DESITRUCTIVE PRICE CUTTINbGI
SECTION 1. COst Findcing.--The Code Authority shall cause to be
formulated methods of cost finding and accounting capable.of;Use
by all members of the industry, and shall submit such methods ,to
the Board for review. If approved by the Board full information
concerning such methods shall be made available to all members of
the Industry. Thereafter each member of the Industry shall utilize
such methods to the extent found practicable. Nothing herein con
tainedl shall be construed to permit the Code Authority, or any agent
thereof, or any member of t-he Indusrtry to suggaest uniform additions
percentages, or differentials or other uniform items of cost which
are desiganed to bring about arbitrary uniformity of costs or prices.
SECTION 2. The standards of fair competition for the Industry
with reference to price practices are declared to be as follows:
(a) Wilful, destructive price cutting is an unfair method of com-
petition and is forbidden. Any member of the Industry or of any
other Industry or the customers of either may at any time complain
to the Code Authorityv that any quoted price constitutes unfair com-
petition as destructive price cutting, imperiling small enterprise or
tending toward monopoly or the impairment of code wages and'
working conditions. The Code Authority shall within five days af- -
ford an opportunity to the member quoting said price to answer such
complaint and shall within fourteen days makre a ruling or adjust-
ment thereon. If such ruling is not concurred in by either party to
the complaint, all papers shall be referred to the Research and IPlah-
ninga Division of N. R. A. which shall render a report and reeturn-
mlendation thereon to the Board. I!
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. *It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) When an emergency exists as to any given product, sales below
the stated minimum price of such product, in violation of Section 8
hereof, is forbidden.
SECTION 3. Emzergency Provisions.-Ilf the Board, after investiga-
tion shall at any time find both (1) that an emergency has arisen
within the Industry adversely affecting small enterprises or wages
or labor conditions, or t~ending toward monopoly or other acute con-
ditions which tend to defeat tihe Purp~oses of the Act; and (2) that
the determination of the stated minimum price for a, specified prod-
uct within the Industry for a limited period is necessary to mitigate
the conditions constituting such emergency and to effectuate the
purposes of the Act, the Code Authority may cause an impartial
agepey to investigate.costs ansd to recommnend to thre Board a deter-
mnination of the started. minimum price of t~he product affected by the
emergency and thereupon the Board may proceed to determine such
stated minimum price.
(a) WVhen the Board shall have determined such stated minimumi
price for a specified product for a stated period, which price shall
be reasonably calculated to mitigate the conditions of such emier-
gqency and to effectuate the purposes of the National Industrial Re-
covery Act, the Board shall publish such price. Thereafter, during
such stated period, no member of the Industry shall sell such speel-
fled products at a net realized price below said stated miinimum
price and any such sale shall be deemed destructive price cutting.
From time to time, the Code AuthorityT may recommend review or
reconsideration or the Board may cause any determinations here-
under to be reviewed or reconsidered and appropriate action taken.
Article VI[II is amended in its ent~iret~y as follows:
- AsrrCLE VIII UNxvonnr SaLES CONTRACTS AND ORDER BL~ANKS
SECTIon 1. Every sales contract. or order, exceptinga fabrics so~ld
to automobile manufacturers, shall contain the following provisions:
(a) Prices shall be F. O. B. lilil, which shall be understood as
permitting free delivery by the manufacturer to common enr~riers
and purchasers located in the Mill city.
(b) In the event that the style, color, or other specifications nee-
essary to filling the order are not specified therein, and the buyer
shall decline to furnish such specifications at least ten days before thie
respective shipping dates, t~he seller may, at his option, compllete the
contract upon reasonable specifications.
(c) All bills shall be payable at the seller's ofljce or place of col-
lection designated by the seller in par exchange or the equivalent
legal tender of the United States, on a net basis in seventy (TO) days
from date of shipment; if paid within ten (10) days f~rom date of
shipment, a maximum cash discount of two percent may be allowed.
'If 4he ten (10) days have elapsed, t~he buyer shall p ay net, but shall
have the privilege .of anticipating at the rate of six percent. per
a~nnam, for the unexpired portion of the seventy (70) day period.
On all over-due bills, the buyer shall pay interest at the rate of six
percent per annum.
(rd) Seller or seller's agent shall have the right, at any time, on
any unfilled portion of this contract, to limit any credit to be ex-
tended hereunder .r to require payment before delivery, provided,
always, that proper adjustment of discount or allowance of antici-
pation for such prepayment, be made.
(e) Wrhen agreed delivery period covers m1ore than thirty (30)
day~s, deliveries shall be in substantially equal quantities for each
thirty (30) days unless otherwise specified.
(f) Deliveries within ten (10) days after time specified shall con-
stitute a good delivery.
(g) Title shall pass from seller to buyer when invoice has been
rendered and the relative goods accepted by a railroad or other
common carrier, subject to the right of the buyer to specify such
carrier, or stored on premises of the seller for the account of t~he
buyer and subject to his order.
(h) This contract is subject to delays for hon-delive~ry Mto
strikes, lock-outs, fires, Acts of God or other causes beyond sit9gr's
control making delivery impossible. For such non-delivery the: Wayqer
shall have the right to cancel, by giving writteid notice to seller, any
part of this contract, past due and undelivered by reason of isuch
cause; seller shall have the same right, provided -notice of such hi~-
tailment is mailed to buyer not later than five (5) days after' any
delivery, hereunder, is interrupted thereby.
(i) Upon the resumption of normal production, seller shall 'e'-
clare to bernew delivery dates for any part hereof then past d~ue:;
fiv dys ftr recipt of such declaration, the rights to cancel, pro-
vided above, shall expire and the delivery schedules, thus amended,
shall become valid under this contract.
(j) Returns or claims must be made within thirty (30) days of
the receipt of t~he goods, except for defects in material and/or workf-
manship and then only if the material has not been processed beyond
the form in which it was delivered to the buyer.
(kr) It is agreed that the seller in accordance with the Code of
Fair Competition for the Upholstery and Drapery Textile Industry
cannot except the return of merchandise sold and delivered in due
accordance and compliance with this contract or accept or permit
any cancellation or modification as t'o price or terms in connection
with merchandise not yet delivered, except as provided herein, pro-
vided,, however, that adjustment may be made as found necessary on
account of depreciation of buyer's credit.
(1) Any delivery not in dispute shall be paid for regardless of
controversies relating to other delivered or undelivered merchandise
(m) Any controversy or claim arising out of or relating to this
contract or the breach thereof, shall be settled by arbitration, in
accordance with the Rules, then obtaining, of the American Arbitra-
tion Association, and judgc~ment upon the award rendered may be
entered in the highest court of the forum, state or federal having
jurisdiction; p provided thlis provision for arbitration shall not have
been deleted by the purchaser upon, or prior to, the execution of
(n) The use of this contract shall not be required on orders
amounting t~o less than one thousand dollars ($1,000.00) or for
deliveries made in less than thirty (30) days.
ARTICLE I1 -UNFAIR TRADE PRACTICES
Delete existing Section 5 and substitute therefore a new Section 5
SECTION 5. Samples.--Giving samples of fabrics free of cost ex-
cept that sample cut~tingas not larger than 6" x 9" may be sent for
selection, free of charge; provided, however, that no more than
six of any color or pattern shall be given to any customer in
one season; and provided further, that larger bona fide samples
may be sent on memorandum to be returned within thirtyv (30)
dta.ys and if not so returned, t~o be billed at the regular price. No
allowance or discount other than cash discount for merchandise
sold is allowed for samples to be used in sample books.
SECTION 6. Delete "'Administrator in the first and second sen-
tences; substituting therefor "L Board ".
Delete Section 7..
Add a new Section 7 as follows:
SECT'ION 7. IZrUOiCing.--No member of the Industry shall withhold
from or insert in any invoice any statement which would make the
invoice inaccurate in any material particular or a false record, wholly
or in part of the transaction to which it refers; nor make any
arrangement which cont~emrplates payment or settlement different
from that described on the face of the invoice.
SECTION 6. Delete "A~dministrator in thle second line and sub-
stitute therefore "; Board ". Delete his "~ in the fifth line and sub-
stitute therefore "' t~he Board's ". Delete "' he in the fifth line and
substitute therefore "' the Board ".
SECTION 10. Stalndar.rds of Safety a~nd Halfh.--Everyr employer
shall make reasonable provision for the safe tyndhearemlthof his
employees at the place and during the hours o hi mlyet
Standards of safety and health shall be submitted by the Code
Authority to the Board for approval within six months after the
effective date of this amendment. The standards approved shall
thereafter be a part of this Code and enforceable as such.
Approved Code No. 125j--Amendment No. L.
Registry No. 28--1--01.
.iii ii II;'
UNIVERSITY OF FLORIDA
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