S :i IONiAL RECOVERY ADMINISTRATION
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CODE OF FAIR COMPETITION
AS APPROVED ON AUGUST 14, 1934
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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. 16-Amendment No. 4
AMENDMENT TO CODE OF FAIR COMPETITION
S- As Approved on August 14, 1934
MODIFCATION OF CODE OF FAIR COMPETITION FOR THE HOSIERY
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 a modifica-
tion of a Code of Fair Competition for the Hosiery Industry, and
hearings having been duly held thereon and the annexed report on
said modification, containing findings with respect thereto; 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 otherwise; do hereby incorporate, by reference, said an-
nexed report and do find that said modification and the Code as
constituted after being modified comply 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 modification be
and it is hereby approved, and that the previous approval of said
Code is hereby modified to include an approval of said Code in its
entirety as modified.
HUGH S. JOHNSONI
Administrator for Industrial Recovery.
ROBERT L. HOUsRTN,
WWAsHINGTON, D. C.,
August 14, 1934.
80607 -1044--77---34 (11
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Hearing covering the Amendment to
the Code of Fair Competition for the Hosiery Industry, held in
Room 3204, Department of Commerce Building, Washington, D.C.,
Friday, March 9, 1934. The Amendment, which is attached, was
presented by duly qualified and 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 in public, and all
statutory and regulatory requirements were complied with.
PROVISIONS OF THE AMENDMENT
This is one amendment which defines the conditions under which-
all sales will be made in the Industry, and under which sales con-
tracts should be entered into.
The Deputy'Administrator in his final report to me on said amend-
ment to said Code having found as herein set forth and on the basis
of all the proceedings in this matter:
I find 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 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 practices,
by promoting the fullest possible utilization of the present produc-
tive capacity of industries, by avoiding undue restriction of produc-
tion (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 the standards of labor, and by otherwise rehabilitating
(b) The Code as amended complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The National Association of Hosiery Manufacturers was and
is an industrial association truly representative of the aforesaid
industry and that said association imposed and imposes no inequi-
table restrictions on admission to membership therein and has applied
for or consents to this amendment.
(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 the 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.
HUGH S. JOHNSON,
AUGUST 14, 1934.
MODIFICATION OF CODE OF FAIR COMPETITION OR
THE HOSIERY INDUSTRY
Amend Article VIII-Fair Trade Practice, Section 1. Contracts,
by removing therefrom subsection (b) and renumbering and entitling
it Section 6--Listing ".
Also remember Sections 6 to 15 to be Sections 7 to 16 respectively.
Cancel subsections (a) and (c) of Section 1. Contracts, and sub-
stitute therefore an entire new section to read as follows:
1. Uniform Conditions of Sale.-The following Conditions of Sale
will be binding on all members of the Hosiery Industry:
(a) All orders are subject to acceptance by the mill.
(b) All orders are accepted subject to delays, partial delivery and
non-delivery caused by labor difficulties, or conditions beyond control
of the seller. In such cases, the seller shall promptly notify the
buyer, and the buyer shall have the right to cancel any undelivered
or unfinished portion of the order. Failure of the buyer to either
cancel or confirm within ten days after receipt of notice shall be
construed as cancellation.
(c) (1) Anticpation of payment, if allowed, shall not be at a rate
in excess of 6% per annum.
(2) Any invoices not paid on due date shall be subject to interest
at the rate of 6% per annum.
(3) Dating in excess of seller's established terms shall be subject
to interest at the rate of 6% per annum.
(4) A discount becomes unearned discount" and is forfeited
upon failure of payment of invoices on due dates, according to terms.
(d) Cancellation may be effected only:
(1) By the buyer because of failure of the seller to make deliver-
ies on the specified Aelivery dates, provided the buyer has furnished
details in keeping with contract commitments, and provided the
buyer has given the seller at least 10 days written notice, (either
before or after the date) of his intention to cancel past due deliv-
eries. Until or unless a past due delivery is cancelled in the manner
provided herein, the commitment of the buyer therefore remains in
2) By the seller, because of impairment of customer's credit.
3) In accordance with sub-section (b) of this section.
e) 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 judgment upon the award rendered may be
entered in the highest court of the forum, state or federal, having
jurisdiction; provided this provision for arbitration shall not have
been deleted by the purchaser upon, or prior to, the execution of this
Approved Code No. 16-Amendment No. 4.
Registry No. 241-02.
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