NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
RAYON AND SILK DYEING
AND PRINTING INDUSTRY
AS APPROVED ON JUNE 7, 1934
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Approved Code No. 172-Amendment No. 1
Registry No. 230-07
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Approved Code No. 172-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
RAYON AND SILK DYEING AND PRINTING
As Approved on June 7, 1934
MODIFICATION OF CODE OF FAIR COMPETITION FOR THE RAYON AND SILK
DYEING AND PRINTING 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 a Modifica-
tion of a Code of Fair Competition for the Rayon and Silk Dyeing
and Printing 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 con-
stituted 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
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
H. 0. KINo,
Jwne 7, 1934.
REPORT TO THE PRESIDENT
The White House.
Sri: This is a report on the Hearing covering the Amendments to
the Code of Fair Competition for the Rayon and Silk Dyeing and
Printing Industry, held in Room 3208 Commerce Building, Wash-
ington, D.C., March 15, 1934, (Postponed from February 27, due to
code conferences). The Amendments, which are attached, were
presented by duly qualified and authorized representatives of the
Industry in accordance with Article VII, Section 8 of the Code
and in accordance with Administrative Order X-27.
Every person who had filed a request for appearance was freely
heard in public, and all statutory and regulatory requirements were
PROVISIONS OF THE AMENDMENTS
There are two amendments as follows:
1. An Amendment providing for the posting of a printed schedule
of all minimum wages, maximum working hours and working condi-
tions as may be directed by the Code Authority.
2. An Amendment whereby a number of unfair trade practices
are added to the Code. These prohibit such practices as guarantee-
ing a customer against a market decline or a market advance; making
false or misleading statements regarding grade, quality, or nature
of any process in the industry; making false statements concerning
a competitor; and other practices deemed undesirable in the industry.
The Deputy Administrator in his final report to me on said amend-
ments 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 amendments 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
welfare by promoting the organization of industry for the purpose
of cooperative action among trade groups, by inducing and maintain-
ing united action of labor and management under adequate govern-
mental sanction and supervision, by eliminating 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 temporarily required), by increasing
the consumption of industrial and agricultural products through
increasing purchasing power, by reducing and relieving unemploy-
ment, by improving the standards of labor, and by otherwise
(b) The Code as amended complies in all respects with the perti-
nent 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 Authority is empowered to apply for and consent
to these amendments.
(d) The amendments and the Code as amended are not 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 other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons these amendments have been approved.
HUGH S. JOHNSON,
JUNE 7, 1934.
MODIFICATION OF CODE OF FAIR COMPETITION FOR
THERAYON AND SILK DYEING AND PRINTING
Article V is hereby amended by the addition of a new section,
number 7, as follows:
7. All concerns shall post conspicuously in each department of
their plants, as may be directed by the Code Authority, a printed
schedule of all minimum wages, maximum working hours and
working conditions as may be in force and effect at the time, to-
gether with a summary of all other rules and standards under this
code and of all other schedules that may be in effect at the time;
such notice shl.ll also contain information as to how and where
employees may report violations."
This Code of Fair Competition is hereby amended by the addi-
tion of a new Article, number XV, as follows:
"ARTICLE XV-UNFAIR TRADE PRACTICES
For all purposes of the Code the acts described in this Article
shall constitute unfair practices. Any member of the Industry who
shall directly or indirectly through any officer, employee, agent or
representative, knowingly use, employ, or permit to be employed,
any of such unfair practices shall be guilty of a violation of the Code.
1. No concern, its officers, stockholders, directors, employees,
agents, or servants, or any person for or on its behalf, or otherwise,
shall suffer, pay, give, make, or authorize any rebates, preferences,
allowances, refunds, discounts, gifts, drawbacks, concessions, deduc-
tions, or remissions, in or by any devise, agreement, subterfuge,
form or manner whatever, directly or indirectly, from or against
any stipulated payment, charge, price, rate, or any amount or
charge set forth in invoice, statement, or bill, or any price reported
in accordance with the open price reporting plan authorized by
Article VII, Sections 2 and 3, of this Code; provided, that fair and
equitable allowances for damaged merchandise or unworkmanlike
processing may be made in the manner provided in this Code.
2. No concern shall obscure the prices at which services are sold
by selling ostensibly at a certain price, but granting or allowing to
the customer a discount.
"3. No concern shall withhold from or insert in the invoice, state-
ments which make the invoice a false record wholly or in part, of the
transaction represented on the face thereof, nor shall any concern
predate an order or contract with the intent or effect of giving either
a member of the Industry or a customer any advantage or benefit
which would not accrue if such order or contract were correctly
4. No concern shall bill customers for less yardage or poundage
than that actually processed for them.
5. No concern shall classify goods for billing purposes except
in accordance with the true weight of the raw goods. The Code
Authority may establish uniform weight classifications for the guid-
ance of the Industry in the observance of this provision.
"6. No concern shall guarantee a customer against a market decline
or a market advance.
7. No concern shall make, cause or permit to be made or pub-
lished, any false or misleading statement concerning the grade, qual-
ity or nature of any process in the Industry or the results obtainable
8. No concern shall make or cause to be made false or defamatory
statements concerning a competitor, his business, prices, credit terms,
values, policies, or products.
"9. No concern shall give, permit to be given, or directly 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 prin-
cipal of such agent or the represented party, respectively, without
the knowledge of such employer, principal, or party, provided that
nothing herein shall prohibit the free and general distribution of
articles used solely for advertising.
10. No concern shall allow customers' claims for damages to
goods exceeding the amount of actual injuries thereto nor shall any
concern allow customers' claims unless said claims shall have been
presented within twelve working days after shipment, except where
the Code Authority shall, for good cause shown, determine otherwise;
nor shall any concern allow customers' claims for damages to goods
after the same shall have been cut up. Following the establishment
of the Central Adjustment Bureau in accordance with Section 4 of
Article VII of the Code, no concern shall allow any claims, except
through such Bureau.
11. No concern shall engrave designs, copper rollers or screens
or furnish engraving or art service, patterns, designs, or advertising
to customers, without making a reasonable charge (at least equal to
12. No concern shall redye, reprint, or reprocess goods for
customers, without full charge, unless done to correct faulty work-
manship; provided that in the latter event, if goods are returned by
customers to any concern after thirty days following the original
delivery date of such goods, for redyeing, reprinting, or reprocess-
ing, they shall not be redyed, reprinted, or reprocessed without the
express approval of the Central Adjustment Bureau.
13. No concern shall allow claims to customers for "excess
shrinkage ", or shortages on any inadequate or artificial basis of
shrinkage, i.e., which does not allow for the normal shrinkage of
such goods under proper processing. The Code Authority may
establish tables of such normal shrinkage as a guide for determining
the adequacy of shrinkage on typical cloths.
14. No concern shall fail to report or falsely report any prices
or terms actually quoted or made by it, as required by Section 3,
Article VII of the Code.
15. No concern shall copy the print or embossed design or pat-
tern of another; the issuance to and possession by anyone of a
UNIVERSITY OF FLORIDA
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6 3 1262 08482 8739
United States Patent or of a registered certificate by the office or
bureau approved by the Board of Trustees for the registration of
designs, covering any design or pattern, shall be presumptive evi-
dence of his ownership of such design or pattern.
16. To avoid unfair competition with finishers and processors
of rayon and/or other synthetic fibres not operating under this Code,
it shall be an unfair practice for those engaged in finishing opera-
tions under this Code to pay less to operators of boiling off, dyeing,
printing and finishing machinery in the dyeing, bleaching, printing,
and finishing of fabrics, the warp of which is primarily rayon or other
synthetic fibre, than their rates for such tasks prevailing on Sep-
tember 1, 1933, unless the Administrator may otherwise permit.
17. Concerns which are members of the Institute engaged in
the processing of rayon and/or synthetic fibres in the yarn, shall, as
to such yarn processed be governed as to competitive practices by
the Code of Fair Competition, approved or to be approved for the
Textile Processing Industry.
18. Any division in this Industry as defined by the Code Au-
thority, having determined that an emergency exists in that branch
of the Industry and that the cause thereof is destructive price-cutting
so as to render ineffective or seriously endanger the maintenance o
the provisions of this Code, may determine or cause to be deter-
mined the lowest reasonable cost of processing the various cloths
according to the quality of the work customarily done by concerns
in that division and recommend the same for acceptance by the
Code Authority. Such determination and recommendation, how-
ever, shall not be effective unless concurred in by eighty per cent of
the concerns present at any duly convened meeting of that division
and unless approved by any concern placed on a higher quality basis
than others for processing the same type and construction of cloth.
Such meeting shall be held in the City of Paterson, N.J. (or the
City of New York, N.Y.) of which five days written notice stating
the purpose of such meeting shall be mailed by registered mail to
each member of the Industry who shall have registered with the
Code Authority under such division. At such meeting, concerns
may vote by their duly authorized officers or by their duly authen-
ticated proxies. The Code Authority shall accept or reject but not
modify or amend such recommendation.
Such action by the Code Authority shall be subject to such
notice and hearing as the Administrator may require and-'the Ad-
ministrator may approve, disapprove or modify the same. There-
after during the period of the emergency it shall be an unfair trade
practice and in violation of this Code, for any member of the In-
dustry to sell or offer any services, for which the lowest reasonable
cost has been determined, at such price or upon such terms or con-
ditions of sale that the buyer will pay less therefore than the lowest
reasonable cost of such services.
When it appears that conditions have changed, the Code Author-
ity, upon its own initiative or upon the request of any interested
party shall cause the determination to be reviewed."
Approved Code No. 172-Amendment No. 1.
Registry No. 230-07.