Amendment to code of fair competition for the handkerchief industry as approved on October 31, 1934

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Material Information

Title:
Amendment to code of fair competition for the handkerchief industry as approved on October 31, 1934
Portion of title:
Handkerchief industry
Physical Description:
17 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Handkerchiefs -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 237-1-01."
General Note:
"Approved Code No. 53--Amendment No. 2."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 005039939
oclc - 63654311
System ID:
AA00007982:00001

Full Text







NATIONAL RECOVERY ADMINISTRATION




AMENDMENT TO

CODE OF FAIR COMPETITION

FOR THE


HANDKERCHIEF INDUSTRY


AS APPROVED ON OCTOBER 31, 1934


WE DO OUR PART


I II


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


F' o
Por sale by the Superlntendent of Docmene,. Waahington. D. C. -- -- Price cent.


Registry No. 237-1-01


Approved Code No. 53-Amendment No. 2








YaI














This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 53-Amendment No. 2


AMENDMENT TO CODE OF FAIR COMPETITION
FOR THE

HANDKERCHIEF INDUSTRY

As Approved on October 31, 1934


ORDER

APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
HANDKERCHIEF INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of amend-
ments to the Code of Fair Competition for the Handkerchief
Industry, and hearings having been duly held thereon and the
annexed report on said amendments containing findings with respect
thereto, having been made and directed to the President:
NOW. THEREFORE, on behalf of the Prsident of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise; does hereby incorporate,
by reference, said annexed report and does find that said amend-
ments and the Code as constituted after being amended comply in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act, and does hereby order that
said amendments be and they -are 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; and
ORDERS, FURTHER, that there shall be created forthwith a
Special Commission composed of three members, one of whom shall
be nominated by the Labor Advisory Board of the National Recovery
Administration, one by the Division Administrator of the Textiles
Division of the National Recovery Administration and one by the
Code Authority for the Handkerchief Industry. Said Commission
shall study and investigate the production of handkerchiefs by means
of hand sewing and hand embellishment in the home. and shall sub-
mit to the National Industrial Recovery Board, within forty (40)
days from the date hereof, a report containing findings with recom-
mendations for minimum piece work and/or hourly rates for hand
sewing and hand embellishment in the home, which recommendations
upon the approval of the National Industrial Recovery Board, shall
become effective as part of this Code. Pending the report of said
94762---1325-2----34 1






2

Commission and the approval of any recommendations thereof by
the National Industrial Recovery Board, the provisions of Section
8 (a) of Article IV, of said Code, as amended, shall be stayed, in-
sofar as the provisions of said Section may apply to hand sewing
and hand embellishment in the home.
NATIONAL INDUSTRIAL RECOVERY BOwi
By G. A. LYNCH, Administrative Officer.
Approval recommended:
PRENTISs L. COONLEY,
Acting Division Administrator.
WASHINGTON, D. C.,
October 31, 1934.












REPORT TO THE PRESIDENT


The PRESENT,
The White House.
Sm: An application has been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act for certain amendments to the Code of Fair Competi-
tion for the Handkerchief Industry, and Hearings were conducted on
said proposed amendments in Washington on April 18, 1934.
The original Code of Fair Competition for the Handkerchief In-
dustry was approved October 9, 1933. The proposed amendments
are the result of close observation of the Code in actual operation.
Generally speaking, the amendments constitute no considerable modi-
fication of the provisions of the original Code; they seek merely to
eliminate certain inequalities, to close up certain loopholes which
have become apparent, to assist in enforcement, and to facilitate ad-
ministration. Such additions to the original Code as are made herein
involve, primarily, trade practice provisions, which, in practically
every case, were referred to in the original Code as subjects upon
which the Code Authority was to study and make recommendations.
The primary object of this set of amendments is to consolidate the
gains achieved by the original Code and to go a little further toward
placing competition in this Industry on a sound and rational basis.
The Deputy Administrator in his final report to the National In-
dustrial Recovery Board on said amendments to said Code having
found as herein set forth and on the basis of all the proceedings in
this matter:
The National Industrial Recovery Board finds that:
(a) The amendments to said Code and said Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act, including the removal of obstruc-
tions 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 (except as may be temporarily required). by increasing the
consumption of industrial and agricultural products through in-
creasing purchasing power, by reducing and relieving unemployment,
by improving standards of labor, and by otherwise rehabilitating
industry.
(b) The Code as amended complies in all respects with the
pertinent provisions of said Title of said Act, including but without
limitations Subsection (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof.








(c) The Handkerchief Industry Association, Inc. was and is an
industrial association truly representative of the aforesaid Industry
and that said association imposed and imposes no inequitable restric-
tions on admission to membership therein and has applied for and
consents to this amendment.
(d) The amendments and the Code as amended are n6t designed
to and will not permit monopolies or monopolistic practices.
(e) The amendments 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 otlier steps of the economic process have
not been deprived of the right to be heard prior to approval of
said amendment.
For The National Industrial Recovery Board:
G. A. LYNCH,
rAdministrative Officer.
OCrTOBEn 81, 1934.













AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE HANDKERCHIEF INDUSTRY

Article II, Section 1 is amended by deleting the present section
and substituting therefore the following:
1. The term Industry as used herein means and includes the
manufacture and/or production of handkerchiefs, in whole or in
art, by hand or machine, including embellishing and/or finishing
hand or by machine, and the sale thereof within the confines of
e Continental United States by any manufacturer, producer or
importer or by any firm, corporation or any other form of enterprise
totally or partly owned or directly or indirectly controlled by any
manufacturer, producer or importer of handkerchiefs.
The term shall not include, however, the embellishing of handker-
chiefs by Schiffli embroidery machines, so-called "handloom ma-
chines and so-called hand-embroidery machines, nor shall it in-
clude the manufacture in whole or in part of handkerchiefs in Puerto
Rico. The term "Industry" as used herein shall, however, mean
and include the sale within the Continental United States of hand-
kerchiefs manufactured in whole or in part in Puerto Rico or else-
where outside the confines of the Continental United States.
Article II, Section 2 is amended by deleting the present section
and substituting therefore the following:
2. The term member of the industry as used herein shall
include:
(a) Handkerchief manufacturers who own or operate their plants
and whose production is sold, in whole or in part, directly by them or
through salesmen, agents, or representatives, to the wholesale or
retail trades;
(b) Handkerchief manufacturers owning plants or operating
plants exclusively on a contract basis for others, in whole or in part
engaged in the production or finishing of handkerchiefs.
(c) Those who purchase materials and have same fabricated into
handkerchiefs, plain or embellished, by contractors, agents, sub-
agents, or individuals within the confines of the United States or its
insular possessions or territories;
(d) Those engaged in wholesale distribution who further the
manufacture of handkerchiefs by any of the following manufac-
turing processes, but without limitation: cutting, stitching, ironing,
folding, pressing, tying, packaging, boxing, embellishing, or other-
wise finishing.
(e) Those engaged in the Handkerchief Industry under more than
one of the above classifications, or otherwise engaged exclusively or
in part as employers or on their own behalf.








Add a new Section 9 to Article III:
9. No employee shall work or be permitted to work in any factory
on any Saturday or Sunday except such employees for whom specific
provision is made in this Section and in Sections 6 and 7 of this
Article. However, for the sole purpose of dampening handkerchiefs
in order that work may be ready for the ironing crew the following
Monday morning, not more than four (4) employees in any one (1)
plant shall be permitted to work on Saturday. No such employees
shall be permitted to work in any case in excess of forty (40) hours
in any one (1) week, including the hours that have been worked by
such employee on the Saturday of said week. In any week in which
a legal or religious holiday occurs the Code Authority may permit
work to be done on a Saturday of such week.
Add a new Section 10 to Article III:
Except as herein provided no work shall be done in any factory
except between the hours of 8 A. M. and 12 noon and between the
hours of 1 P. M. and 5 P. M. In the event, however, that all or a
majority of factories in any particular city or area request a change
from the standard hours herein above set forth, the Code Authority,
subject to the disapproval of the National Industrial Recovery
Board, may modify the standard hours for such city or area. In
no case shall the lunch period be less than one hour and in no case
shall such standard hours exceed 8 hours per day.
Amend Article IV, Section 1 by deleting the present Section and
substituting therefore the following:
1. Except as hereinafter provided, no employee in any section of
the United States other than the Southern Section as defined in
Section 5 of Article II, of this Code, shall be paid at less than the
rate of thirteen ($13.00) dollars per week of forty (40) hours nor
shall any employee engaged in the Southern Section of the United
States be paid at less than the rate of twelve ($12.00) dollars per
week of forty (40) hours.
No member of the industry shall make any deduction from the
wages of any employee because of spoilage or because of the infrac-
tion of any rule where the effect of such deduction would be to re-
duce the net weekly wage of any such employee to less than the
minimum wages provided herein.
Each member of the industry shall maintain accurate payroll
records (including records of hours worked) and shall submit re-
ports based thereon at four-weekly intervals to the Confidential
Agency.
Amend Article IV, Section 3 by deleting the present section and
substituting therefore the following:
8. Each member of the industry shall file with the Confidential
Agency of the Code Authority duly certified schedules of rates of
pay for piecework production for each type of standard operation
in force in his plant (including homework, if any and where per-
missible), and shall advise said Agency of any change or alteration
which may at any time be made in such schedules. Said Confidential
Agency shall report to the Code Authority, under key numbers, all
such schedules, in order that the Code Authority may be kept in-
formed as to the observance or nonobservance of this Code. Unless








ordered by the National Industrial Recovery Board, said Confidential
Agency shall in no case disclose the nai1m of anyone to whom any
key number may have reference.
Amend Article IV, Section 7 by deleting the present Section and
substituting therefore the following:
7. A person whose earning capacity is limited becnal.e of age,
physical or mental handicap. or other infirmity, may be employed on
light work at a wage below the minimum established by this Code,
if the employer obtains from the State Authority designated by the
United States Department of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall be
stated in the certificate. Such Authority ,hall be guided by the in-
structions of the United States Department of Labor in issuing
certificates to such person. Each employer shall file monthly, with
the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximum hours of work for
such employee.
Amend Article IV, Section 8 "by deleting the present Section and
substitutingg therefore the following:
8. (a) Except as hereinafter provided, no member of the industry
shall manufacture or finish or cause to be manufactured or finished
any handkerchief by means of home labor, except that handkerchiefs
made entirely by hand may be manufactured at home.1
(b) Anything to the contrary herein notwithstanding, a person
may be permitted to engage in homework at the same rate of wages
as is paid for the same type of work performed in the factory or
other regular place of business if a home-worker's certificate is
obtained from the State Authority or other officer designated by the
United States Department of Labor, such certificate to be granted in
accordance with instructions issued by the United States Department
of Labor, provided
(1) Such person is physically incapacitated for work in a factory
or other regular place of business and is free from any contagious
disease; or
(2) Such person is unable to leave home because his or her services
are absolutely essential for attedance on a person who is bedridden
or an invalid and both such persons are free from any contagious
disease, or because of the necessity of caring for minor children or
dependents unable to leave home.
Any employer engaging such a person shall keep such certificate
on file and shall file with the Code Authority the name and address
of each worker so certified.
Delete Article IV, Section 9 in its entirety. (The present Article
IV, Section 10 now becomes Article IV, Section 9.)
Amend Article V, Section 1 by deleting the present Section and
.substituting therefore the following:
1. No person under sixteen (16) years of age shall be employed in
the Industry. In the event of a claim of alleged violation of this
I See paragraph 3 of order approving this Amendment,
94752---1325-2-34--2





8 I

section, an employer shall be deemed to have complied with the pro-
visions of this section if he shall have on file and make available for
inspection by the Confidential Agency a certificate of age issued by
the duly authorized department of the State in which the employer
operates, showing the age of the employee at the time of entering
such employment to be no less than the age required by this section.
Amend Article VI, Section I by deleting the present Section and
substituting therefore the following:
To further effectuate the purposes of the Act, a Code Authority is
hereby constituted to cooperate with the National Industrial Recov-
ery Board in the Administration of the Code. Said Code Authority
shall consist of not more than thirteen (13) members to be elected
in the manner hereinafter set forth:
(a) Nine (9) members and two (2) alternates shall be appointed
by the Board of Directors of the Handkerchief Industry Association,
Inc.
(b) One (1) member shall be appointed by the National Industrial
Recovery Board on the nomination of the Labor Advisory Board
of the National Recovery Administration.
(c) In addition to the foregoing, the National Industrial Recov-
ery Board may appoint not more than three (3) members without
vote to represent the National Industrial Recovery Board and/or
such groups or interests as it may designate.
Amend Article VI, Section 4 by deleting the present Section and
substituting therefore the following:
4. If the National Industrial Recovery Board shall at any time
determine that any action of the Code Authority or any agency
thereof may be unfair or unjust or contrary to the public interest,
the National Industrial Recovery Board may require that such action
be suspended to afford an opportunity for investigation of the merits
of each action and further consideration by the Code Authority
or agency pending final action which shall not be effective unless the
National Industrial Recovery Board approves or unless it shall fail
to disapprove after thirty (30) (lays' notice to it of intention to pro-
ceed with such action in its original or modified form.
Amend Article'VI, Section 5 by deleting the present Section and
substituting therefore the following:
Subject to such rules and regulations as may be issued by the
National Industrial Recovery Board, the Code Authority shall have
the following powers and duties, in addition to those authorized
by other provisions of the Code.
(a) To incorporate itself, the Code Authority may incorporate
under the laws of any State of the United States or of the District
of Columbia, such corporation to be not for profit and to be known
as "The Handkerchief Industry Code Authority"; provided that
the powers, duties, objects and purposes of the said corporation, shall,
to the satisfaction of the National Industrial Recovery Board, be
limited to the powers, duties, objects and purposes of the Code Au-
thority as provided in the Code; provided further, that the Code
Authority shall submit to the National Industrial Recovery Board,
for its approval, its proposed Certificate of Incorporation and pro-
posed by-laws, and no amendment of either shall be made without








the like prior approval of the National Industrial Recovery Board.
If at any time, the National Industrial Recovery Board shall de-
termine that the corporate status accrued by the Code Authority is
interfering with the proper exercise of its powers and duties under
this Code, or with the effectuation of the policies or purposes of the
Act, it may, after such notice and hearing as it. may deem necessary,
require an appropriate modification of the structure of the Corpora-
tion (if consistent with the law of the State of Incorporation), the
substitution of a corporation created under the laws of another State
in the same manner as the existing Code Authority, the substitution
of a non-corporate Code Authority truly representative of the Indus-
try or such other actions as it may deem expedient.
(b) To elect officers and to assign to them suh duties as it may
consider advisable, to set up rules for its own procedure, and to
provide for its continuance as the administrative agency of this
Code in accordance with the terms of the Act. and the principles
herein set forth.
(c) To adopt by-laws, and rules and regulations for its procedure
and for the administration and enforcement of this Code, and to sub-
mit the same to the National Industrial Recovery Board for its ap-
proval, together with true copies of any amendments or additions
when made thereto, and minutes of meetings when held, and such
other information as to its activities as the National Industrial Re-
covery Board may deem necessary to effectuate the purposes of the
Act.
(d) To insure the execution of the provisions of this Code and to
provide for the Compliance of the Industry with the provisions of
the Act.
(e) To select a Confidential Agency. The Agency shall in no
way be engaged in the industry or connected with any member
thereof. The Code Authority shall furnish said Agency with such
credentials as are necessary to facilitate its operations.
The Confidential Agency shall obtain from all members of the
Industry reports of such character and in such form as is permitted
under this Code and under the Act. All individual reports shall be
held as secret and confidential between the Agency and the reporting
members, except as hereinafter provided.
Each member of the industry shall maintain accurate and complete
records of its transactions wherever such records may be required
under any of the provisions of this Code, and shall furnish accurate
reports based upon such records concerning any of such activities
when required by the Code Authority or the National Industrial
Recovery Board. If the Code Authority or the National Industrial
Recovery 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 required for the verifi-
cation of such report may be examined by an impartial agency
agreed upon between the Code Authority and such member, or, in the
absence of agreement, appointed by the National Industrial Recovery
Board. In no case shall the facts disclosed by such examination be
made available in identifiable form 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 and
enforcement of the provisions of this Code.








In addition to information required to be submitted to the Code
Authority. members of the industry shall furnish such statistical
information as the National Industrial Recovery Board may deem
necessary for the purposes recited in Section 3-A of the Act, to such
Federal and State Agencies as it may designate; provided that notih-
ing in this Code shall relieve any member of the industry of any
obligations to furnish reports to any government agency.
(f) To secure from the Confidential Agency consolidated reports
in respect to all matters pertinent to this Code.
(g) To submit reports either directly to the National Industrial
Recovery Board, (or through the Confidential Agency to it, if the
reports be of a secret or confidential nature), in such form and at
such time as it may require, in order that the President may be kept
informed with respect to the observance or non-observance of the
Code and of the Act.
(h) To direct the Confidential Agency to make surveys and inves-
tigations, compile reports, collect statistics in such manner and under
such regulations as the Code Authority may prescribe. subject to
disapproval of the National Industrial Recovery Board.
(i) To create, subject to the approval of the National Industrial
Recovery Board, a Trade Practice Complaints Committee which
shall investigate all alleged violations of this Code other than alleged
labor violations, and act upon the results thereof, and, if the findings
justify, to transmit said findings to the National Industrial Recovery
Board and to any other proper Governmental agency.
(j) To use such trade associations and other agencies as it deen-,
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the (ode Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(k) To make recommendations to the National Industrial Recov-
ery Board for the coordination of the administration of this Code
with such other codes, if any, as may be related to or affect member-
of the industry, or any subdivision thereof.
(1) It being found necessary, in order to support the adminis-
tration of this Code and to maintain the standards of fair competi-
tion established by this Code and to effectuate the policy of the Act,
the Code Authority is authorized: (1) 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 pur-
poses of the Code; (2) To submit to the National Industrial Recov-
ery Board for its approval, subject to such notice and opportunity
to be heard as it may deem necessary, (a) an itemized budget of its
estimated expenses for the foregoing purposes, and (b) an equitable
basis upon which the funds necessary to support such budget shall
be contributed by members of the industry; and (3) After such
budget and basis of contribution have been approved by the National
Industrial Recovery Board, to determine and obtain equitable con-
tribution as above set forth by all such members of the industry, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.








Each member of the industry shall pay his or its equitable contri-
bution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regu-
lations pertaining thereto issued by the National Industrial Recovery
Board. Only members of the industry complying with the Code and
contributing to the expenses of its administration as hereinabove
provided (unless duly exempted from making such contributions),
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 Administration.
The Code Authority shall neither incur nor pay any obligations
substantially in excess of the amount thereof as estimated in its
approved budget and shall in no event exceed the total amount con-
tained in the approved budget, except upon approval of the National
Industrial Recovery Board; and no subsequent budget shall contain
any deficiency item for expenditures in excess of prior budget esti-
mates, except those which the National Industrial Recovery Board
shall have so approved.
(m) To cause to be formulated methods of cost finding and ac-
counting capable of use by all members of the industry, and to sub-
mit such methods to the National Industrial Recovery Board for
review. If approved by the National Industrial Recovery 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 contained shall be construed to permit the Code Au-
thority, any agent thereof, or any member of the industry to suggest
uniform additions, percentages or differentials or other uniform
items of cost which are designed to bring about arbitrary uniformity
of costs or prices.
(n) To make complaint to the President on behalf of the Indus-
try, in accordance with the provisions of Section 3 (e) of the Act,
whenever any article is being imported into the United States in
substantial quantities or increasing ratio to domestic production of
any competitive article or articles and on such terms or under such
conditions as to render ineffective or seriously to endanger the main-
tenance of this Code, and for the purpose of making such complaint,
to secure from all members of the industry, through the Confidential
Agency, all information necessary to support such complaint.
(o) To establish or designate, subject to the approval of the Na-
tional Industrial Recovery Board, such agencies on planning and
fair practice as may be necessary, which agencies shall cooperate
with the Code Authority in developing fair trade practices and in-
dustrial planning, including the regularization and stabilization
of employment for the industry.
(p) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
codes as may be related to the industry for the purpose of formu-
lating fair trade practices to govern the relationships between em-
ployers under this Code and employers under such other Codes to
the end that such fair trade practices may be proposed to the
National Industrial Recovery Board as amendments to this Code








and to such other codes, and to issue such further rules and regula-
tions as may be necessary to establish such further fair trade prac-
tices, as may be approved by the National Industrial Recovery
Board.
(q) To initiate, consider, and make recommendations for the
modification or amendment of this Code, which modifications or
amendments shall become effective as part hereof upon approval by
the National Industrial Recovery Board after such notice as it may
specify.
(r) To provide appropriate facilities for arbitration, and, sub-
ject to the approval of the National Industrial Recovery Board, to
prescribe rules of procedure and rules to effect compliance with
awards and determinations.
(s) In order to assist in making effective the reports from the
industry and in eliminating unfair competition, the Code Authority
may appoint a committee so constituted as to give consumer and
governmental representation satisfactory to the National Industrial
Recovery Board to make a study with a view to the establishment
of classifications and standards of quality and size of staple products
of the industry wherever such standards are deemed feasible. The
findings and recommendations of this committee shall be submitted
to the National Industrial Recovery Board, and after such hearings
and investigations as it may designate and upon approval by it
shall be made a part of this Code and shall be binding upon every
member of the industry.
Amend Article VI, Section 6 by deleting the present Section and
substituting therefore the following:
6. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
act of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority be liable
to anyone for any act or omission to act under this Code, except
for his own willful malfeasance or non-feasance.
Amend Article VI by adding a new Section 7 as follows:
7. There shall be established an Industrial Relations Committee
for the Industry, which shall consist of an equal number of repre-
sentatives of employers and employees and an impartial chairman.
The National Industrial Recovery Board shall appoint such impartial
chairman upon the failure of the committee to select one by agree-
ment. If no truly representative labor organization exists, the em-
ployee members of such board may be nominated by the Labor Ad-
visory Board of the N. R. A. and appointed by the National Indus-
trial Rcovery Board. The employer representatives shall be chosen
by the Code Authority. Such committee shall deal with complaints
relating to labor in accordance with rules and regulations issued by
the National Industrial Recovery Board. The Industrial Relations
Committee may establish such divisional, regional, and local indus-
trial adjustment agencies as it may deem desirable, each of which
shall be constituted in like manner as the Industrial Relations Com-
mittee.








Delete Article VII In Its Entirety. (The Present Article VIII
Now Becomes Article VII and the Present Article IX Becomes Arti-
cle VIII.)
Amend Article VII, Section 1 By Deleting the Present Section and
Substituting Therefor the Following:
1. No member of the Industry shall directly or indirectly give,
permit to be given, or offer to give, anything of value for the purpose
of influencing or rewarding the action of any employee, agent or
representative of another in relation to the business of the employer
of such employee, the principal of such agent, or the represented
party, without the knowledge of such employer, principal, or party.
This provision shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as herein-
above defined.
Amend Article VII, Section 2 By Deleting the Present Section
and Substituting Therefor the Following:
2. No member of the industry shall make or allow to be made any
payments or allowance of rebates, refunds, commissions, credits, or
unearned discounts, whether in the form of money or otherwise, or
extend to certain purchasers any special services or privileges not
extended to all purchasers on like terms and conditions. No member
of the Industry shall allow buying commissions, rebates, extra dis-
counts, or other concessions to purchasing agents or to purchasing
agencies.
Amend Article VII, Section 4 By Deleting The Present Section
and Substituting Therefor The Following:
4. No stock protection shall be given involving price adjustment on
merchandise delivered and no price guaranty shall be given against
decline on orders booked for future delivery.
Amend Article VII, Section 5 By Deleting The Present Section
and Substituting Therefor The Following:
5. No member of the Industry shall accept the return of merchan-
dise sold to a customer in good faith and shipped in accordance with
specifications, order, or contract. In no event shall any merchandise
be accepted for return, if retained by a customer for more than ten
(10) days after receipt of the merchandise, unless the said merchan-
dise is returned because of hidden defects effecting the salability of
the merchandise.
Amend Article VII By Adding A New Section 21, As Follows:
21. No member of the Industry shall deviate from the price fixed
by a contract. All Contracts and/or orders shall be binding in
accordance with the provisions thereof.
Amend Article VII By Adding A New Section 22, As Follows:
22. No member of the Industry shall accept the attempted cancel-
lation of a contract, where the effect of such cancellation would be
to circumvent any provision of this Code.








Amend Article VII By Adding A New Section 23, As Follows:
23. No member of the Industry shall ship merchandise on consign-
ment or memorandum.
Amend Article VII By Adding A New Section 24, As Follows:
24. No member of the Industry shall procure or attempt to pro-
cure, any information concerning the business of another member
which is properly regarded by such member as a trade secret or
confidential within its organization (except on consent of such
member).
Amend Article VII By Adding A New Section 25, As follows:
25. No member of the Industry shall pack handkerchiefs not of
first quality in sealed cartons or envelopes or in any other sealed
containers so that the whole or part of the handkerchief is not easily
accessible for examination unless said individual containers are
clearly marked seconds or otherwise appropriately designated as
containing merchandise other than firsts ".
Amend Article VII, By Adding A New Section 26, As Follows:
26. (a) When the basic fabric from which a handkerchief is manu-
factured, embodies in either the warp or the filling, or both, more
than one kind of yarn, no matter from what fibre or filaments the
yarn may be spun, the handkerchief manufactured from such fabric
shall not be labelled or by any form of phraseology be designated or
referred to by the name of any one only of the component fibres or
filaments, unless such component constitutes by thread count 80% of
the fabric, and provided further, that unless the fabric is genuinely
100% of any fibre or filament designation (linen, cotton, silk, rayon,
etc.) exclusive of regular selvage, except as hereinafter provided for
fancy woven materials, the actual percentage by thread count of any
component of at least 60% and which is less than 100%, shall be
prominently indicated on any label or ticket identifying the hand-
kerchiefs manufactured from such fabric.
In the case of fancy woven materials, in which the warp and the
filling of the plain weave are made from yarns of the same fibre,
whether the fancy elements are plain corded or fancy borders, or all-
over effects, such as checks or plaids, and are made of yarns of other
fibres or filaments, only the true fabric name of the plain weave may
be designated, if only one fibre element is specified on the label.
The above prohibitions shall not apply to merchandise delivered
on or before December 31st, 1934, provided that Sections 18 and 19
of this Article are not violated.
(b) The elements used for appliques, embroidered embellishments,
lace corners, lace edges, or any material attached in any way to com-
plete the handkerchiefs, shall not be considered as affecting the true
designation of the basic materials as herein specified.
(c) No member of the Industry shall use labels, the wording of
which emphasizes in any manner a minor element in the manufacture,
construction or finish of the handkerchief fabric, or in the processing
or embellishment of the handkerchief itself, which descriptive word-
ing may have a tendency to induce a purchaser to believe that the
said wording applies to the handkerchief as a whole or to the basic
fabric referred to in paragraph marked a" of this Section.






S15

(d) No member of the Industry shall so label handkerchiefs,
S specially or otherwise, at the request of any purchaser or purchasing
agency as to in any way conflict with the provisions of this Section.
S Amend Article VII By Adding A New Section 27, As Follows:
: 27. No member of the Industry shall, in sampling fancy white
satin strips or prints, or white cords, or colored cords, or colored
S woven borders, insert samples in sample folders so as to conceal from
the prospective customers the fact that one side of the handkerchief
is raw selvage, unstitched, unless a conspicuous label or marking of
some kind is placed on the handkerchief indicating that only three
sides of the handkerchief are hemmed.
Amend Article VII By Adding A New Section 28, as Follows:
28. The Code Authority shall create, subject to the approval of the
National Industrial Recovery Board, appropriate regulations and
facilities for the registration of new or original styles, designs or
patterns of handkerchiefs. Upon the creation of such regulations
and facilities and upon the approval thereof by the National Indus-
trial Recovery Board, no member of the Industry other than the
registering member shall manufacture or cause to be manufactured
any handkerchiefs incorporating any such new or original styles, de-
signs, or patterns as may be registered as hereinabove provided,
except upon the written consent of the registering member.
Amend Article VIII, Section 1 By Deleting The Present Sections
and Substituting Therefor The Following:
Maximum terms of sale for this Industry shall be-
1. Net cash ten (10) days; or with an equalizing differential in the
price, two per cent (2%) ten (10) days-sixty (60) extra; or two and
one-half per cent (21/2%) ten (10) days--thirty (30) extra; or
three per cent (3%) ten (10) days; or C. 0. D. three per cent (3%).
The cash discounts as outlined in this Section shall be interpreted
as maximum discounts allowed under this Article. Members of the
Industry shall be permitted to sell at terms other than those speci-
fically stated in this Article, provided, however, that such terms shall
not be more advantageous or more liberal than those terms specified
in this Article, and further, that such dating shall not in any case
exceed seventy (70) days from date of billing of merchandise to the
buyer, and further, that in no case shall the cash discount be in
excess of three per cent (3%).
Amend Article VIII, Section 5 By Deleting The Present Section
and Substituting Therefor The Following:
5. No member of the Industry shall allow discount if bill is not
paid within fifteen (15) days of due date at the office at which the
account is due and payable.
Amend Article VIII, Section 9 By Adding To The Present Section
The Following:
9. The term "packaged, trade-marked handkerchiefs" as used
herein, shall mean and include one (1), two (2), or three (3) hand-
kerchiefs completely encased in a carton or sealed envelope wrap,
which carton or wrap bears thereon the trade-mark of the member of
the Industry and a suggested retail price.








Amend Article VIII By Adding A New Section 10, As Follows:
10. No member of the Industry shall give any discounts except
as provided in this Article whether in the nature of trade discounts or
increased cash discounts and whether arrived at by increasing the
gross selling price or in any other manner.
Amend Article VIII By Adding A New Section 11, As Follows:
11. The seller shall designate the terms of payment under which
his merchandise shall be sold in accordance with Section 1 of this
Article.
Amend Article VIII By Adding A New Section 12, As Follows:
12. A member of the Industry may bill merchandise shipped on or
after the 25th of the month as of the first of the following month.
Amend Article IX, By Substituting the Present Article IX for
the Former Article VIII and Substituting as the Present Article IX,
The Following Sections:
ARTICLE IX-NRA LABELS
1. Hereafter, the Code Authority may apply to the National In-
dustrial Recovery Board for grant of the necessary authority and
exclusive right to issue and sell NRA labels, or authorized substitutes
therefore, to members of the Industry; and, upon the issuance of ap-
propriate orders by the National Industrial Recovery Board, under
powers vested in it by Executive Orders of the President, including
Executive Order No. 6859 and otherwise, the Code Authority shall
have the exclusive right in this Industry to issue and sell said labels
or said authorized substitutes to the members of said Industry; and
thereafter all merchandise manufactured subject to the provisions of
this Code shall bear on the carton containing such merchandise, or
in such other place as the Code Authority, subject to review by the
National Industrial Recovery Board, may designate, an NRA label
or an authorized substitute therefore, to symbolize to purchasers of
said merchandise the conditions under which it has been manufactured.
2. The issuance and sale of said labels, and/or of said authorized
substitutes, shall be governed by the following rules and regulations
and such other rules and regulations as may hereafter be issued
or approved by the National Industrial Recovery Board:
(a) Each label shall bear a registration number or numbers es-
pecially assigned to each member of the industry by the Code Au-
thority, or a serial number, and shall remain attached to all such
merchandise when sold to the retail distributor.
(b) Any and all members of the Industry may apply to the Code
Authority for a permit to use such NRA label, which permit shall
be granted to them only if and so long as they comply with this
Code.
(c) For the purpose of ascertaining the right of members of the
Industry to the continued use of labels and of protecting purchasers
of merchandise bearing such labels and of insuring to each individual
member of the Industry that the symbolism of such label will be
maintained by virtue of compliance with the provisions of this Code
by all members of the Industry using said label, the Code Authority






17

shall establish rules and regulations and appropriate machinery for
S the issuance of labels and the inspection, examination and supervi-
sion of the practices of members of the Industry.
(d) The charge made for such labels by the Code Authority shall
S be subject to the approval of the National Industrial Recovery Board.
(e) The application of the provisions of this Article and the rules
S and regulations governing the issuance and use of said labels shall
S at all times be subject to rules and regulations issued by the National
Industrial Recovery Board.
Amend Article X, Section 10, Deleting the Present Section 10
and Substituting Therefor the Following:
SAll members of the Industry shall post and keep posted in a con-
spicuous place accessible to employees complete copies of this Code.
In addition to the foregoing complete copies of all labor provisions
of this Code together with any necessary interpretations shall be
placed in a conspicuous place on each factory floor and in all places
S of business other than the factory where three or more persons are
employed. Such posted copies of the labor provisions of this Code
and of the said interpretations shall be in English and/or in any
S other necessary language or languages.
Amend Article X By Adding A New Section 12, As Follows:
S Every employer shall provide for the safety and health of em-
ployees during the hours and at the places of their employment.
Standards of safety and health shall be submitted by the Code Au-
thority to the National Industrial Recovery Board within three (3)
months after the effective date of this amendment.
Approved Code No. 53-Amendment No. 2.
Registry No. 237-1-01.
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