N*..Code No. 201-Supplement No. 1 Registry No. 280-03
NATIONAL RECOVERY ADMINISTRATION
-CODE OF FAIR COMPETITION
ilECORATIVE FABRICS TRADE
(A Division of the Wholesaling or Distributing Trade)
:;". AS APPROVED ON MARCH 6, 1934
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Approved Code No. 201-Supplement No. 1
SUPPLEMENTARY CODE OF FAIR COMPETITION
UPHOLSTERY AND DECORATIVE FABRICS TRADE
As Approved on March 6, 1934
rAPPROVIN SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
UPHOLSTERY AND DECORATIVE FABRICS TRADE
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
An applicatiofi having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Upholstery and Decorative
Fabrics Trade to the Code of Fair Competition for the Wholesaling
or Distributing Trade, and hearings having been duly held thereon
and the annexed report on said Code, containing findings with re-
spect theretq, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933; and do hereby incorporate by reference said annexed report
and do find that said Supplemental Code complies in all respects with
the pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Supplemental
Code of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industlal Recovery.
A. D. WHITESIDE,
March 6, 1934.
REPORT TO THE PRESIDENT
The White House,
Smn: This is a report of the Hearing on the Fair Trade Practice :i
Supplement of the Upholstery and Decorative Fabrics Trade toha
Code of Fair Competition for the Wholesaling and Distritifft
Trade conducted in the Banquet Hall of the Carlton Hotel on Decem- .
ber 8, 1933. The Supplemental Code which is attached was pre-
sented by duly qualified and authorized representatives of the Trade,
complying with the statutory requirements, said to represent 75 per-
cent in number and 90 percent in volume of the Trade which could iI
be included in this Code.
THE TRADE :
There are no census figures available covering this Trade. Ac-
cording to statistics furnished by members of the Trade, there are
approximately 125 concerns engaged in it. Their total annual sales
in 1929 amounted to approximately seventy million dollars, and in
1932 to forty million dollars. The Trade employs about 160
PROVISIONS OF TIE CODE
Since this Code is supplemental to the General Code of Fair Com-
petition for the Wholesaling or Distributing Trade, it contains no
The provisions containing supplemental definitions are inclusive
The supplement to the administrative provisions, establishes a
Divisional Code Authority for this Trade, which is fairly and ade-
quately representative of the different elements in the Trade. Ac-
cording to the most accurate available statistics, the Upholstery 'and
Decorative Fabrics Association of America contains among its men-
bership or is authorized to represent in the administration of th
Code, 75 percent of the total number of concerns in the Trade. Its :
members sell approximately 80 percent of the total volume. The-
selection of four representatives of the Code Authority by the Asso-
ciation and one representative by non-members of the Association,
therefore, seems to be fair.
The Trade Practice rules contained in the Supplemental Code are
not in any respect objectionable and are designed to promote fair
dealing in the Trade.
The Deputy Administrator in his final report to me on said Code 7i
having found as herein set forth and on the basis of all the proceed- ,:
ings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
Sposes of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
i, .mmerce which tend to diminish the amount thereof and will pro-
,.i de'for the general welfare by promoting the organization of indus-
Stry for the purpose of cooperative action among the trade groups, by
I. inducing and maintaining united action of labor and management
Sunder adequate governmental sanction and supervision, by eliminat-
Sing unfair competitive practices, by promoting the fullest possible
: utilization of the present productive capacity of industries, by
avoiding undue restriction of production (except as may be tem-
p:orarily required), by increasing the consumption of industrial and
agriculturala l products through increasing purchasing power, by re-
E- jcing and relieving unemployment, by improving standards of
: : bor, -and by otherwise rehabilitating industry.
(.. ,(b) Said. Trade normally employs not more than 50,000 em-
. pLoyees; and is not classified by me as a major industry.
.I The Code as approved 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; and that the applicant
group is a trade group truly representative of the aforesaid Trade,
and that said group imposes no inequitable restrictions on admission
to membership therein.
S (d) The Code is not designed to and will not permit monopolies
or -monopolistic practices.
S (e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
S(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, the Supplemental Code has been approved.
HUGH S. JOHNSON,
MancH 6, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE UPHOLSTERY AND DECORATIVE FABRICS
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
To further effectuate the policies of Title I of the National Indus-
trial Recovery Act, the following provisions are established as a
Supplemental Code of Fair Competition for the Upholstery and
Decorative Fabrics Trade to the Code of Fair Competition for the
Wholesaling or Distributing Trade, as provided by Article VI, Sec-
tion 1 (c) thereof, and shall be considered as a part of and in con-
nection with the said Code for the Wholesaling or Distributing
Trade and both Codes shall be binding upon every member of such
Wholesale Upholstery and Decorative Fabrics Trade.
SUPPLEMENTING ARTICLE II OF THE GENERAL CODE
1. The term Upholstery and Decorative Fabrics Distributing
Trade as used herein includes the selling at wholesale of upholstery
and decorative fabrics to interior decorators, upholsterers, and furni-
ture manufacturers, and such branches or subdivisions thereof as
may from time to time be included under the provisions of this Code.
2. The term distributor is defined to mean any person engaged
in the Trade.
3. The term "Association" as used herein refers to the Upholstery
and Decorative Fabrics Association of America, a trade association
4. The term "Divisional Code Authority" as used herein means
the Divisional Code Authority for the Upholstery and Decorative
Fabrics Trade, a division of the Wholesaling and Distributing Trade.
SUPPLEMENTING ARTICLE VI, SECTION 2, PARAGRAPH (E) OF THE GENEILL
1. The Divisional Code Authority shall be composed of five
(a) Four representatives of members of the Association appointed
by the Board of Directors of the Association.
(b) One representative of non-member distributors assenting to
this Code and consenting to pay their share of the cost of its admin-
istration, to be chosen as and when and in a manner prescribed by the
AARnCLE IV-TRADE PRACTICES
SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE.
r:;: As expressly permitted in Article VIII, Section 2, of the Code of
air Competition for the Wholesaling or Distributing Trade, viola-
*tions of the following regulations constitute additional unfair
Methods of competition for members of the Upholstery and Decora-
tive Fabrics Distributing Trade and are prohibited:
1. Discrim.ination.-Each distributor shall maintain, publish, and
file with the Divisional Code Authority, a printed list quoting his
established wholesale prices for all fabrics. Each distributor shall
:! :r ::ti, ae to said established price list as filed and amended from time
"to time and shall afford equal terms and prices to all buyers similarly
situated in order thereby tor avoid unfair discrimination.
S2. Cash terms shall not exceed 2% 10 days, due net 30 days, pro-
-::rivided that extra dating not exceeding 60 days may be allowed to
drapery and upholstery departments of retail stores and furniture
manufacturers, and further provided that E. O. M. terms may be
3. 10% discount may be allowed for full pieces and over, but in no
ease unless the full piece consist of 50 yards or more. It is further
provided that 10% may be allowed on materials at not less than
$1.00 per yard wholesale of half pieces of 25 yards and over, provided
such purchases are for stock purposes.
4. Contract sales to retail stores or manufacturers, provided such
purchases are for stock; and contract sales for wholesalers, hotels,
clubs, steamships, theatres, railroads, and other public work, need
not be controlled by the provisions of paragraphs 1 and 3 hereof.
5. No secret rebates, and no discounts, bonuses, or special advan-
tages of any kind, other than herein expressly authorized, shall be per-
mitted, including courtesy discounts such as, but not limited by,
those made to trade customers, and their employees for purchases to
be used in decorating their homes and their business establishments.
6. Lost samples must be paid for by the borrower except that a
25% allowance may be made where, in the judgment of the seller,
special circumstances warrant it.
7. Sample Orders: All sample lengths of fabrics other than
swatches and samples bound in book form not exceeding 54 square
inches, except chintzes and cretonnes which may be 216 square inches
in size shall be billed at the regular price per yard without any allow-
ance or trade discount. Nothing in this section shall apply to stocks
of books on hand or under contract on December 9, 1933; provided
that a list of such stocks or contracts are filed with the Divisional
Code Authority within 10 days after the effective date of this Code.
8. Returns. When merchandise is returned without fault of the dis-
tributor, a 10% service and depreciation charge shall be made,
but no piece of less than 3 yards shall be accepted under such
9. Designs. No design owned by or in the use of which there is
a property right which belongs to an importer .or jobber shall be
pirated or copied without proper authorization. No reproduction
in good faith of a museum piece or other significant pieces and no
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innocent purchase of merchandise from a manufacturer shall UbU
deemed a violation of this section.
10. Season Lines of memorandum samples shall be discontinu .eA
and to that end no samples shall be permitted out on memorandni
more than thirty days.
11. Consignments. No yard goods merchandise shall be give I.
on consignment or memorandum, except under circumstances t&eW
defined by the Divisional Code Authority where peculiar conditeiii'4
of the trade require it.
ARTICLE V-EFFECTVE DATE
This supplemental code shall become effective on the tenth dayi:
after date of approval.
Approved Code No. 201, Supplement No. 1.
Registry No. 280-03.
UNIVERSITY OF FLORIDA
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