NiIA NAI RECOVERYY ADMINISTRATION
1H., AMENDMENTS TO
: CODE OF FAIR COMPETITION
FOB THE r
.CE MANUFACT3RY NG
:" AS APPROVED ON DECEMBER 23, 1933
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WE DO OUR PAIr
1. Executive Order
2. Letter of Transmittal
I Amendment to Code
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~i NE-D STATES
.. OIRMENT FEINTING OFFICB
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i. ::,' ''"":: :::i. E eeutive Order
i w"p.inw;t:;i;;pn. ;w'. bw- tt. la-mendmt.ent a-tor Codecet
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Registry No. 244-01
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This publication 'dr: le by the Superintendent of Documents, Government .,
Printing Office, Wadli gt 4, D.C., and by district offices of the Bureau of Foreign
and Domestic Comnner ":
Sb1)0ICT' )tFFICES, OF THE DEPARTMENT OF COMMERCE
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Memphis, Tenn.: 229 Federal Building.
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Seattle, Wash.: 809 Federal Building.
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SApproved Code No. 6-Amendment No. 1
AMENDMENTS TO CODE OF FAIR COMPETITION
LACE MANUFACTURING INDUSTRY
As Approved on December 23, 1933
An application having been duly made by the Lace Manufacturing
Industry Committee under date of September 27, 1933, pursuant to
and in full compliance with the provisions of Title I of the National
Industrial Recovery Act, approved June 16, 1933, and pursuant to
Articles V and XI of the Code of Fair Competition for'the Lace
Manufacturing Industry approved by me in my Executive Order of
August 14, 1933, for my approval of amendments to said Code pro-
posed in said application, and full hearings having been held thereon
and the Administrator, under date of December 9, 1933, having ren-
dered his report containing an analysis of said amendments, together
with his recommendations and findings with respect thereto, and the
Administrator having found, as set forth in said report, that the said
amendments comply in all respects with the pertinent provisions of
Title I of said Act and that the requirements of Clause 2 of sub-sec-
tion (a) of Section 3 have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
,United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
S.otherwise, do adopt and approve the report, recommendations, and
S. findings of the Administrator and do order that said amendments to
the Code of Fair Competition for the Lace Manufacturing Industry
S be and they hereby are, approved and made a part of said Code.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
T W rITE HOUSE,
December 23, 1933.
DECEMBER 9, 1933.
The White House.
Sm: This is a report on a hearing of the modification of the Codes :
of Fair Competition for the Lace Manufacturing Industry held iii::
Washington, D.C., on October 18, 1933, submitted by the Lace Main-
ufacturing Industry Committee in accordance with Article V .oat:
said Code approved by you in your Executive Order of August 1,
1933. Application was made to this office under date of September ;
27, 1933, by the Lace Manufacturing Industry Committee, the Plan-
ning and Fair Practice Agency for the administration of the Code:
of Fair Competition for the Lace Manufacturing Industry, for mod-
ification of Article V and the elimination of Article VII, and tbh
addition of Articles XII, XIII, and XIV. Article V provides that
the Planning and Fair Practice Agency may submit recommenda-
tions to the Administrator for changes in, or additions to, the Code
from time to time if the necessity therefore becomes apparent. Oper-
ation of the Code developed that a more comprehensive regulation '
was needed for the stabilization of the sales practices of the Indusry.
These provisions do not in any way affect the Wage and Hou;
provisions of the Code or the number of workers employed.
The Administrator finds that:
(a) The code as amended complies in all respects with the per-:
tinent provisions of Title 1 of the National Industrial Recovery Act
including, without limitation, subsection (a) of Section 7, and sub-
section (b) of Section 10 thereof.
(b) The applicant group imposes no inequitable restrictions oal
admission to membership therein, and is truly representative of
(c) The provisions of the Code as amended are not desipled'tb j.
promote monopolies or to eliminate or oppress small enterprawes aind
will not operate to discriminate against them, and will tend to efft :
tuate the policy of Clauses one and two of the National IndustriaI
It is recommended, therefore, that the modifications to this Codei..1:
be adopted immediately.
Respectfully submitted. : ::GH
HUGH S. JoNso-, -
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AMENDMENTS TO THE CODE OF FAIR COMPETITION
r LACE MANUFACTURING INDUSTRY
i:' The first sentence of Article V shall be modified to read as follow
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; "To effectuate further the policies of the Act, a Lace Manufactur-
S ing Industry Committee is hereby created to cooperate with the
Administrator as a Planning and Fair Practice Agency for the Lace
Manufacturing Industry, which Committee shall consist of five rep-
resentatives of the Lace Manufacturing Industry elected by a fair
method of selection, to be approved by the Administrator, and three
members without vote appointed by the Administrator."
and Article VII shall therefore be eliminated.
There shall be added at the end of said Code the following
I "1. Every person engaged in the Industry shall furnish the Code
S Authority within ten (10) days after the effective date of this
i; -4rticle a certificate listing and registering all his productive machin-
ery, with sufficient information and description to make possible
the positive identification of such machinery at all times.
"2. Prior to the installation of additional productive machinery
by persons engaged or engaging in the Industry, except for the
replacement of a similar number of existing machines or parts of
productive machinery to be used for replacement or maintenance of
S existing machinery, such persons shall make application to the
;' Administrator and secure a certificate from the Administrator that
Such installation will be consistent with effectuating the policy of
the National Industrial Recovery Act."
There shall be added to said Code the following Article:
1. No person engaged in the Industry shall sell or offer for
> sale any product of the Industry at a price below his cost of pro-
duction. It is provided, however, that any person may sell any
: product of the Industry at a price as low as the price set by any
competitor on products which are identical or essentially the same,
to meet the price competition of a lower cost producer. Any per-
ison who reduces his price to meet a competitor's price shall not be
uetumeu LU naSv VIoiutaiM Lue provisions ox T~Us .aucie ii sucn e
immediately notifies the Code Authority of his .action and all fit
It is further provided that the provisions of the foregoing park
graph shall not apply to the sale of discontinued patterns which
the Code Authority, with the approval of the Ad-mnistrator, may
authorize. i .
"The foregoing provisions of this Article shall not become e- o .i-
tive until the Code Authority, with the approval of the Admini*s- -
tor, shall have established and published a standard cost-finding
system for the Industry.
2. Persons engaged in the Industry shall sell the produce o-f
the Industry only in compliance with the following terms: *it4i
8 percent, ten days, end of month, or 6 percent,.ten days, 60: ...
extra, with no additional dating. It is provided, however,
where payment is made on the basis of 8 percent, ten days, end
month, it shall be permissible to grant dating as of the first of tii
following month on shipments made on and after the 25th of :te
month. Anticipation of payment may be allowed at the rate 60 f:,
not more than 6 percent per annum. Selling terms shall be, either ,::
f.o.b New York or f.o.b. mill, deliveries to be free of charge 'to.il
common carriers and to customers located in the city where tlil ..
mill is located, and optionally to customers located within corpora"
limits of the City of Greater New York. Provided, however, that
the foregoing section shall not apply to government contract s.:-"
"3. Secret discounts, extra dating, rebates, gratuities, acceptnce
of payment for invoices below original amount, credit allowances
for purpose of reducing the price, shipping goods on consignment,
or any other arrangement the effect of which will amount to a
secret discount or rebate, is prohibited. This paragraph shall not
apply to sample pieces shipped on memorandum, provided. such
shipments do not exceed one piece of any one pattern in one color
for a period of not more than two weeks.
"4. Every person engaged in the Industry shall file with the Code
Authority certified lists of prices and discounts, and also all subse-
quent revisions of such prices and discounts, and such lists and revi-
sions shall be forwarded immediately to all manufacturers. A new
price or revision of any price shall be given to the Code Authority
ten (10) days prior to the date upon which such price or revision
shall become effective, provided, however, that where any person ,
files a new price or revision of a price any of his competitors may
also file a corresponding new or revised price to become effective upon
the same date.
"No person engaged in the Industry shall sell or contract to sell :
any product of the Industry at less than his published list price less,
published discounts as filed with the Code Authority.
5. Misrepresentation as to weight, quantity, size, quality, or grade
of any product offered for sale shall be an unfair trade practice. ;
"6. It shall be an unfair trade practice for any person engaged A'
in the Industry to make a colorable imitation of an original design1 il
of any other such person. The Question of what constitutes a color-
able imitation of an original design shall be determined by majority :
vote of a Board of seven appointed by the Code Authority and com-
.;: subject to appeal t6 .,e d ..''i'" i ............i:'. s""a. question of design"
originality arises which involves am iE"aBa'tier
of such question, replacing hbiap itM aEppointment, pro tempore, of
S"7. The sale or ofeir' sale .. of veils or ceilings which are un-
There shalj6 added. tb said Code the following Article:
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posed of person prevengag the manufacture of merchandise unsativs-
to the consumer, the Code Authority, subject to the approval
dubje ito appeal may from time to time establish standards of d
origi t qualities for laces of particular technical descriptions.
Authority reasonable notice has been given no lacties duringshall be made of
of such quality to these minimum standards; provided however,
anot the standards so established shall be approved by the majoritytive.
"7. The sale or 0fe "I 'sale ofo veils or veilings which are un-
finished or i thbe an unfair trade practice."ry."
moved Code No. ndment Code the following Article
Registry No. 244-01.
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to prevent the manufacture of merchandise unsatis-.
Apjroved Code No. 6-Amendment No. 1.
UNIVERSITY OF FLORIDA
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3 1262 08482 8085
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