Appned ode .. 3-Amndmnt N. 2RegitryNo. 32---0
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
HAIR AND JUTE FELT
AS APPROVED ON JULY 22, 1934
WE DO OUR PART
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Approved Code No. 73-Amendment No. 2
Registry No. 232-1-03
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Approved Code No. 73-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
HAIR AND JUTE FELT INDUSTRY
As Approved on July 22, 1934
APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE HAIR
AND JUTE FELT 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 Hair and Jute Felt
Industry, and hearings having been duly held thereon and the an-
nexed report on said amendment, 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
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amendment 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 do hereby order that said amendment 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 amended.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
ROBERT L. HousToN,
July s, 1934.
REPORT TO THE PRESIDENT
ThAe White Houe.
SIR: The attached amendment was submitted, on behalf of the
Industry, by the National Control Committee for the Hair and Jute
The public hearing was conducted in Washington, D.C. on June 6,
1934. Every person who requested an appearance was freely heard
in accordance with statutory and regulatory requirements.
RESUME OF AMENDMENTS
Certain changes have been made in the Administration Article of
the Code to bring the powers and duties of the Code Authority in
line with more recently approved codes. A section has been added
which will give the Code Authority power to assess the Industry for
The experience of several months' operation under the Code has
shown the necessity for the inclusion of additional fair trade prac-
tices and changes in others.
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
obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for
the general welfare 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 utili-
zation of the present productive capacity of industries, by avoiding
undue restriction of production (except as may be temporarily re-
quired), by increasing the consumption of industrial and agricul-
tural products through increasing 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 perti-
nent provisions of said Title of said Act, including without limita-
tion Sub-Section (a) of Section 3, Sub-Section (a) of Section 7,
and Sub-Section (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said 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 oper-
ate 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
For these reasons, the amendment has been approved.
HUGH S. JOHNSON,
JULY 22, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE HAIR AND JUTE FELT INDUSTRY
There shall be added to Article II, the followifig Section:
"(h) The term 'wholesaler, distributor, wholesale distributor or
jobber of carpet linings and rug cushions' shall mean a person, firm,
corporation, association, partnership or division thereof which by
the nature of its operations is definitely organized to render a whole-
sale distribution service; buys and maintains at its place of business
an adequate stock of carpet linings and rug cushions which through
salesmen, advertising and/or sales promotion devices is sold to re-
tailers and/or institutional, commercial, and/or industrial outlets
and performs a credit function."
Section (c) of Article-VI shall be deleted and the following pro-
visions substituted therefore:
"(c) 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 hereunder and to effectuate the policy of the Act,
the National Control Committee 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 Administrator for his approval, sub-
ject to such notice and opportunity to be heard as he may deem
necessary (1) an itemized budget of its estimated expenses for
the foregoing purposes, and (2) an equitable basis upon which
the funds necessary to support such budget shall be contributed
by members of the Industry;
"(c) After such budget and basis of contribution have been
approved by the Administrator, to determine and obtain equi-
table contribution as above set forth by all members of the In-
dustry, and to that end, if necessary, to institute legal proceed-
ings therefore in its own name.
"2. Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the National
Control Committee, determined as hereinabove provided, and subject
to rules and regulations pertaining thereto issued by the Administra-
tor. Only members of the industry complying with the Code and
contributing to the expenses of its administration as hereinabbve pro-
vided, unless duly excepted from making such contribution, shall be
entitled to participate in the selection of members of the National
Control Committee or to receive the benefits of any of its voluntary
activities or to make use of any emblem or. insignia of the National
"3. The National Control Committee shall neither incur nor pay
any obligation in excess of the amount thereof as estimated in its
approved budget, except upon approval of the Administrator; and
no subsequentbudget shall contain any deficiency item for expendi-
tures in excess of prior budget estimates except those which the
Administrator shall have so approved."
Section (d) of Article VI shall be deleted and the following pro-
vision substituted therefore:
"(d) Nothing contained in the By-Laws or Code of Fair Compe-
tition shall constitute the members of the National Control Com-
mittee partners for any purpose. Nor shall any member of the
National Control Committee be liable in any manner to anyone for
any act of any other member, officer, agent or employee of the
National Control Committee. Nor shall any member of the National
Control Committee exercising reasonable diligence in the conduct of
his duties hereunder, be liable to anyone for any action or omission
to act under the By-Laws or Code of Fair Competition, except for
his own willful misfeasance or non-misfeasance."
"(k) If the Administrator shall at any time determine that any
action of the National Control Committee or any agency thereof may
be unfair or unjust or contrary to the public interest, the Adminis-
trator may require that such action be suspended to afford an oppor-
tunity for investigation of the merits of such action and further
consideration by such National Control Committee or agency pend-
ing final action which shall not be effective unless the Administrator
approves or unless he shall fail to disapprove after thirty (30) days'
notice to him of intention to proceed with such action in its original
or modified form."
In Section (c) Article VII the word, "approval shall be
deleted, substituting therefor:-" disapproval ".
Section (h) (2) and Section (h) (3) of Article VII shall be
deleted and the following provision substituted therefore:
"(h) (2) Discontinued Lines.-Any member of the Industry may
offer in any calendar year a combined total of discontinued lines
and/or seconds of Carpet Linings and Rug Cushions up to one per-
cent of his previous calendar year's dollar volume of sales at below
cost or published prices, but must advise the Secretary of the National
Control Committee forty-eight hours in advance, the nature, quantity
and price of the merchandise thus offered. The Secretary will notify
the members in the Industry."
There shall be added to Article VII the following sections:
"(j) Consignments.-Consigning carpet linings or rug cushions to
: "(k) Classification of Customers.-Misclassifying a customer so as
to enable said customer to obtain a more favorable price or terms of
sale than that to which he is properly entitled.
"(1) Cbmmercial Bribery.-Lending, giving, permitting to be
given or loaned, or directly offering to loan or 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 busi-
ness of the employer of such employee, the principal of such agent or
the represented party; nor shall such member permit such actions
through or by his salesmen. 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 hereinabove defined."
Approved Code No. 73-Amendment No. 2.
Registry No. 232-1-03.
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