Citation
Code of fair competition for the light sewing industry except garments

Material Information

Title:
Code of fair competition for the light sewing industry except garments as approved on January 23, 1934 ..
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
Supt. of Documents
Publication Date:
Language:
English
Physical Description:
p.403-424 : ; 23 cm.

Subjects

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

Notes

General Note:
"Approved Code No.220 ; Registry No 299-50"

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
004853441 ( ALEPH )
63654458 ( OCLC )

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Full Text
UNIVERSITY OF FLORIDA
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NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION
FOR THE

SLIGHT SEWING INDUSTRY

EXCEPT GARMENTS

AS APPROVED ON JANUARY 23, 1934











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UNITED STATES
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E.:. WASHINGTON: 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.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Approved Code No. 226
CODE OF FAIR COMPETITION
: FOR THE

LIGHT SEWING INDUSTRY EXCEPT GARMENTS

As Approved on January 23, 1934





ORDER
APPROVING CODE OF FAIR COMPETITION
FOR THE

LIGHT SEWING INDUSTRY EXCEPT GARMENTS

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 Code of
Fair Competition for the Light Sewing Industry Except Garments,
and hearings having been duly held thereon and the annexed report
on said Code, 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 Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator far Industrial Recovery.
Approval recommended:
A. D. WITESIDE,
Division Administrator.
WASINGTON, D.C.,
January 23, 1934.
85368----313-113-34 (403)













THE PRESIDENT,
The White Howe.
Sm: This is a report on the Hearing on the Code of Fair Com-
petition for the Light Sewing Industry Except Garments, held in
accordance with the provisions of the National Industrial Recovery
Act, in the Chinese Room of the Mayflower Hotel, on November 28,
1933. The Code which is attached was presented by duly qualified
and authorized representatives of the Industry, complying with stat-
utory requirements, said to represent 75 percent or more in volume of
each division of the Industry.
In accordance with the customary procedure every person who had
filed a request for an appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
This Code is a combination of a number of separate Codes origi-
nally submitted to the Administration. These separate Codes would
have placed several divisions of this Industry under completely sepa-
rate documents. Should these Codes have been put through sepa-
rately, manufacturers of more than one of the articles now included
within this Code would have been obliged to operate under several
Codes. Furthermore, a large number of small sewn articles not
listed specifically in any proposed Code might not have been brought
under the jurisdiction of the Act.
The tendency of Industry Groups and Associations was to submit
Codes for their principal items of manufacture, but to overlook or
fail to include the many small items made by them. It would be
almost impossible to enumerate these many small items in separate
Codes. Had they been included in the definition of the larger sepa-
rate sewing codes other than garments, manufacturers would have
found themselves operating under a multiplicity of such codes. Ac-
cordingly, the Code submitted herewith is designed to coordinate all
sewn articles other than garments that have not or are not being
granted separate Codes.
THE INDUSTRY

The Industry as represented by the seven divisions now specifically
included in the Code comprises about 232 concerns, having an invest-
ment in 1933 of $16,323,400. In 1928 the Industry provided employ-
ment for 10,821 employees. This figure has declined to about 8,404
workers during 1933. The aggregate annual sales have fallen from
$42,553,270 in 1928 to $30,534,100 in 1932.

PROVISIONS OF THE CODE

The Code provides for a minimum wage of 32/2 cents per hour.
Employees in the Fabric Auto Equipment Division, however, may
be paid at the rate of 30 cents per hour in the South. The weekly
(404)





...; .o ..
405

compensation for employment in excess of the minimum wages
provided in this Code shall not be reduced although the hours of
work have been reduced and provision is made for increasing the
pay for such employment by an equitable readjustment of all pay
schedules.
Office employees are permitted to work 48 hours in any one week
provided they do not work more than 40 hours per week averaged
: over a period of two months. Hours of work for factory employees
are limited to 40 hours in any one week and 8 hours in any 24-hour
period except that these employees are permitted to work 48 hours
per week for not more than six weeks in any six months' period pro-
vided that the number of hours shall not be in excess of 40 hours per
week averaged over a six months' period, and provided further that
all hours worked in excess of 40 hours in any one week shall be paid
for at not less than one and one third (11/) times the normal rate.
Employees in a supervisory capacity receiving $35 per week or more,
watchmen and outside salesmen are not limited as to hours. Em-
ployees on emergency repair work are excepted from the maximum
hour provisions but are to be paid time and one third for overtime
work. Maintenance employees are permitted to work 44 hours per
week. Operations are limited to one shift of 40 hours in the Mattress
Cover Division and two shifts of 40 hours each per week in all the
other divisions.
Hours of work have been reduced from 47 to 40 by the applica-
tion of this Code. According to the Division of Research and
Planning, the actual number of hours that this Industry will operate
under the provisions of the Code will be approximately 37 hours per
week, so that the effect will be to reduce the hours of work between
15 and 20 percent and increase employment in the same proportion.
Average wages in this Industry will be increased from $13.00 to
approximately $15.00 per week. This represents a substantial in-
crease since the minimum wages must be raised considerably to
account for this change in average wages.
Representation on the Code Authority is provided for all members
of the Industry. The Code sets up Divisional Committees to admin-
ister the supplemental fair trade practices for the separate divisions
of this Industry.
There are no highly restrictive provisions in the Code itself.
Provision is made for prohibiting the sale of merchandise below
cost in certain divisions when and if a uniform and standard system
of cost accounting is approved by the Administrator. No such
provision, however, will become effective without further approval
of the Administrator.
FINDINGS
I find that:
(a) Said Code is well designed to promote the policies and
purposes of Title I of the National Industrial Recovery Act, includ-
ing removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-






406


ment under adequate governmental 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 unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent 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; and that the applicant
associations are industrial associations truly representative of the
aforesaid Industry; and that said associations impose no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is 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
Code.
For these reasons, this Code of Fair Competition for the Light
Sewing Industry Except Garments has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
JANUARY 23, 1934.













CODE OF FAIR COMPETITION
FOR THE
LIGHT- SEWING INDUSTRY EXCEPT GARMENTS


ARTICLE I-PURPOSES

-To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Light Sewing Industry Except Gar-
ments, and shall be the standard of fair competition for such
Industry and shall be binding upon every member thereof.

ARTICLE II-DEFINITIONS

1. The term "Light Sewing Industry Except Garments or
SIndustry as used herein includes the manufacture and original
sale of all sewn textile articles and -or table pads and/or table mats
except wearing apparel and excepting such articles as are governed
by the provisions of other codes of fair competition, and shall
include such related branches or subdivisions as may from time to
time be included under the provisions of this code by the President
of the United States after such notice and hearing as he may
prescribe.
2. The terms table pad and table mat" as used herein are
defined to mean any mat manufactured for urse in protecting the sur-
face of tables against heat, liquids, or marring, composed of a
water-proof surface and an insulating element such as asbestos, cork,
pasteboard, felt paper, or corrugated paper.
3. The term member of the Industry includes, but without
limitation, any individual, partnership, association, corporation, or
other form of enterprise engaged in the Industry either as an em-
ployer or on his or its own behalf, and includes anyone who fur-
nishes or contracts for labor as a part of a larger or further operation
in the process of manufacturing any of the products of this Industry.
4. The term employee as used herein includes any and all per-
sons engaged in the Industry however compensated, except a member
of the Industry.
5. The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
6. The term "productive machinery as used herein and as applied
to the divisions of this Industry is defined:
(a) For the Quilting Division: Quilting machines.
(b) For the Comfortable Division: Hand-guided sewing machines
and hand-needle work equipment, and automatic quilting machines.
(407)






408

(c) For the Covered Carpet Padding Division: Carpet lining,
sewing and quilting machines, garnetts, lappers, pickers, stitching
and bending machines, and cloth-cutting machines.
7. The term "Act" and "Administrator" as used herein mean
respectively Title I of the National Industrial Recovery Act and the
Administrator for Industrial Recovery.

ARTICLE III-HOURS

1. No office employee shall work or be permitted to work in excess
of forty (40) hours per week, averaged over a period of two months,
or forty-eight (48) hours in any one week or eight (8) hours in any
twenty-four (24) hour period.
2. No other employee, except as hereinafter provided, shall work
or be permitted to work in excess of forty (40) hours in any one week
or eight (8) hours in any twenty-four (24) hour period, except that
such employees may be permitted to work forty-eight (48) hours per
week for not more than six (6) weeks in any six-month period, pro-
vided that the number of hours shall not be in excess of forty (40)
hours per week averaged over a six months' period. Work done in
excess of forty (40) hours in any one week, however, shall be paid
for at not less than one and one third (11/3) times the normal rate.
3. The maximum hours fixed in the foregoing sections shall not
apply to:
(a) Executives and employees in a managerial or supervisory ca-
pacity who receive thirty-five dollars ($35.00) or more per week,
watchmen, and outside salesmen.
(b) Repair-shop crews, engineers, electricians, and firemen, who
shall be permitted to work not in excess of forty-four (44) hours per
week.
(c) Employees on emergency maintenance or emergency repair
work involving breakdowns or protection of life or property, but in
any such special case overtime shall be paid for at not less thah one
and one third (11/3) times the normal rate.
At the end of each calendar month every employer shall report to
the Code Authority hereinafter provided for, in such detail as may
be required, the number of man-hours worked in that month in cases
of emergency and the ratio which said emergency man-hours bear to
the total number of man-hours of labor during said month.
4. Members of the Industry shall not operate for more than two
(2) shifts of forty (40) hours each per week, except as provided
hereafter in supplemental provisions.
5. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours prescribed for
each week and day, whether employed by one or more employers.

ARTICLE IV-WAGES

1. No employee shall be paid at less than the rate of 32% cents
per hour except that employees in the Fabric Auto Equipment Divi-
sion may be paid at the rate of not less than 30 cents per hour in the
Southern States, which shall include only the States of Virginia,
North Carolina. South Carolina, Georgia, Florida, Alabama, Mis-




-- --- -- --- -- -- -- --- -- --- -- --- --- ----- -- --- --



409

issippi, Tennessee, Kentucky, Louisiana, Arkansas, Oklahoma,
Texas, and the District of Columbia.
S2. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
other basis.
3. The weekly rate of compensation for employment now in excess
of the minimum wages herein provided shall not be reduced (not-
withstanding that the hours worked in such employment may be
hereby reduced), and the pay for such employment shall be
increased by an equitable readjustment of all pay schedules.
4. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
5. A person whose earning capacity is limited because of age or
physical or mental handicap 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 his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.

ARTICLE V-GENERAL LABOR PROVISIONS

1. No person under sixteen (16) years of age shall be employed in
this Industry. In any State any employer shall be deemed to have
complied with this provision if he shall have on file a certificate or
permit duly issued by the Authority in such State, empowered to
issue employment or age certificates or permits, showing that the
employee is of the required age.
2. Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing.
4. Employers shall comply with the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment, approved or
prescribed by the President.
5. Within each State members of the Industry shall comply with
any laws of such State imposing more stringent requirements on
employers regulating the age of employees, wages, hours of work,
or health, fire, or general working conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
7. Each employer shall post in conspicuous places accessible to
employees full copies of this Code.
8. Until adoption of further provisions of this Code that may
prove necessary in order to prevent any improper speeding up of the
353680---313-113-34----2






410


work (stretch-outs) no manufacturing employee in the Industry siill
be required to do any work in excess of the practice as to the clasl bof
work of such employee prevailing on July 1, 1933, or prior to the
Share-The-Work movement, unless such increase is submitted t6 aiid
approved by the Code Authority created by this Code, and by 'the
Administrator.
9. No employer shall have work done or labor performed on any
article produced in this Industry in the home of a worker, except
hand work only as follows:
(1) Candlewick bedspreads.
(2) Hand quilted textiles for a period of six months, but there-
after only if specifically exempted by the Administrator.
ARTICLE VI-ADMINISTRATION

There shall forthwith be constituted a Code Authority.
1. Organization and constitution of Code Authority:
(a) The membership of the Code Authority shall include seven
(7) members (which number may be increased to ten (10) members
if and when necessity arises therefore by further inclusion of addi-
tional Divisions within this Code) to be selected in a manner
approved by the Administrator from the following Divisions:
Quilting, 1 Member.
Mattress Covers, 1 Member.
Comfortable, 1 Member.
Fabric Auto Equipment, 2 Members.
Other Members of the Industry, 1 Member.
In addition to the membership as above provided, there may be
tluee (3) additional members without vote appointed by the Admin-
istrator, one of whom may be appointed on the nomination of the
Labor Advisory Board of the NRA.
(b) Divisional Committees consisting of not more than seven (7)
members each shall be selected by each of the following divisions of
this Industry in a manner approved or prescribed by the Adminis-
trator: Comfortable Division, Covered Carpet Padding Division,
Fabric Auto Equipment Division, Mattress Cover Division, Table
Pad Division, and Quilting Division. New divisions of the Industry
may be established on the recommendation of the Code Authority
with the approval of the Administrator. The Administrator may
appoint up to three members, without vote, to each of the Divisional
Committees.
(c) In order that the Code Authority and the Divisional Com-
mittees shall at all times be truly representative of the Industry and
in other respects comply with the provisions of the Act, the Adminis-
trator may provide such hearings as he may deem proper; and
thereafter if he shall find that the Code Authority or the Divisional
Committees are not truly representative or do not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority or
of the Divisional Committees.
(d) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
or a Divisional Committee shall (1) impose no inequitable restric-




. .


411


~i;;


tions on membership, and (2) submit to the Administrator true
copies of its articles of association, bylaws, regulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the Adminis-
trator may deem necessary to effectuate the purposes of the Act.
S. The Code Authority and the Divisional Committees shall have
the following duties and powers:
.-(a) The Code Authority shall cooperate with the Administrator
in the administration of the provisions of this Code. The Divisional
Committees, subject to the general approval of the Code Authority,
shall cooperate with the Administrator in the administration of
the supplemental provisions applicable to their respective Divisions.
(b) The Code Authority may from time to time present to the
Administrator recommendations based on conditions in the Industry
as they may develop which will tend to effectuate the operation of
the provisions of this Code. The Divisional Committees may present
to the Administrator recommendations concerning their respective
supplemental provisions. Such recommendations, when approved
by the Administrator, after notice to and after opportunity given
to the Divisional Committees of all Divisions affected to be heard,
shall have the same force and effect as any of the provisions of this
Code. Such recommendations may include recommendations for
use by all members of the Industry in their respective Divisions,
of an N.R.A. label and for the establishment of the necessary
machinery to manufacture and issue the same.
(c) The Code Authority shall collect statistics covering number
of employees, wage rates, employee earnings, hours of work, and
such other data as may be prescribed or approved by the Adminis-
trator and may designate the Divisional Committees as the agencies
to collect such statistics.
(d) Members of the Industry shall be entitled to share in the
selection of the members of the Code Authority and of their ap-
propriate Divisional Committees by assenting to the requirements
of this Code and of any supplemental provisions thereto, and by pay-
ing their reasonable share of the expenses of the administration of
this Code and of such supplemental provisions.
The reasonable share of the expenses of the Code Authority shall
be determined by the Code Authority on the basis of dollar volume
of business, subject to review by the Administrator. Such expenses
shall be collected by the appropriate Divisional Committee from
members of the Industry who are members of the above-mentioned
Divisions and by the Code Authority from members of the Industry
not members of such Divisions.
The reasonable share of the expenses of the Divisional Committees
shall be determined by the appropriate Divisional Committee on
the basis of dollar volume of business, subject to review by the Ad-
ministrator. Such expenses shall be collected by the appropriate
Divisional Committee.
(e) Nothing contained in this Code shall constitute the members
of the Code Authority or of the Divisional Committees partners for
any purpose, nor shall any member of the Code Authority or of the
Divisional Committees be liable in any manner to any one for any
act.of any other member, officer, agent, or employee of the Code






412

Authority, or of the Divisional Committees, nor shall any member-
of the Code Authority, or of the Divisional Committees, exercising
reasonable diligence in the conduct of his duties hereunder be liable
to any one for any action or omission to act under this Code, except
for his own willful misfeasance or nonfeasance.
3. In addition to the information required to be submitted to
the Code Authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act.
4. If the Administrator shall determine that any action of a
Code Authority, Divisional Committe, or any agency thereof is
unfair or unjust or contrary to public interest, the Administrator
may require, that such action be suspended for a period of not to
exceed thirty days to afford an opportunity for investigation of
the merits of such action, and further consideration by such Code
Authority, Divisional Committee, or agency, pending final action
which shall be taken only upon approval by the Administrator.

ARTICLE VII-TRADE PRACTICES

1. The violation of any provision of this Code or of any supple-
mental provisions thereto shall constitute an unfair trade practice.

ARTICLE VIII-- EDIFICATION

1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of subsection (b) of Section 10 of the Act, from time to time
to cancel or modify any order, approval, license, rule, or regula-
tion issued under said Act.
2. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circtunstances,
such modifications to be based upon application to the Administrator,
and such notice and hearing as he shall specify, and to become
effective on approval of the Administrator.

ARTICLE IX-MONOPOLIES

No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.

ARTICLE X-EFFECTIVE DATE

This Code shall become effective on the tenth day after approval.
Approved Code No. 226.
Registry No. 299-50.






.1




:i~m:: w.:


COMFORTABLE DIVISION
Division No. 1
I-DEFNITION

The term "Comfortable Division" as used herein includes all
members of the Industry producing comfortable and comforts.
II-TRA DE PRACTICES

S1. No member of the Division shall sell or exchange or offer to
sell any product of the Division below his own cost, when and if
same may be determined as herein provided, except to meet the com-
petition of any member of the Division whose price for a product
of equivalent quality is not less than his own cost. When a uniform
and standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member
of the Division shall use a system of accounting which conforms
to the principles of such system. The Divisional Committee shall,
subject to the approval of the Administrator, determine the cost
factors to be included in such system.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section and to make provision
for the disposal of discontinued lines, seconds, and other sales to be
excepted from the application of this Section.
"2. Members of the Division shall file with the Divisional Com-
mittee a schedule of prices and terms of sale for the products of the
Division, within thirty (30) days after the effective date of this
Code. Such price lists may be revised only upon five (5) days' notice
by registered mail to the Divisional Committee. The Divisional
Committee shall immediately send copies of all price lists filed to all
members of the Division.
Members of the Division shall not sell their products at lower
prices or on more liberal terms than set forth in their own price list.
When any member of the Division revises his price list, any other
member of the Division may revise his price list accordingly, to be-
come effective on the same date as the revised price list first filed.
The following may be sold without filing revised price lists there-
for, but shall be reported to the Divisional Committee immediately
after sale: dropped lines and seconds.
The Divisional Committe shall have the power to suspend the
operation of the provisions of this Section.
3. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
tion to the business of the employer of such employee, the principal
(413)




.. .. ...

414

of such agent, or the represented party, without the knowledge of
such employer, principal, or party. This provision shall not be con-
strued 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.
(b) Using or substituting any material inferior in quality to that
specified by the purchaser of any product.
(c) Maliciously inducing or attempting to induce the breach of
an existing oral or written contract between a competitor and his
customer or source of supply or interfering with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, com-
missions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of any product of the Division in
any manner which tends to deceive or mislead purchasers, with
respect to the grade, quality, quantity, origin, size, material content,
or preparation of such product.
(f) Selling on more liberal terms than 3/10 E.O.M.
(g) The failure to plainly mark seconds.
(h) The making or causing or knowingly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-
wise, having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
(i) Making sales upon any other terms than expressly set forth
in the invoice pertaining to such sales.
4. The selling or offering for sale of any product of the Division
on memorandum or on consignment or on conditional sale shall be an
unfair trade practice.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.













MATTRESS COVER DIVISION
SDivision No. 2
I-DEFIN TION

The term "Mattress Cover Division as used herein includes all
members of the Industry producing mattress covers.

II-TRADE PRACTICES

1. No member of the Division shall sell or exchange or offer to
sell any product of the Division below his own cost, when and if same
may be determined as herein provided, except to meet the compe-
tition of any member of the Division whose price for a product of
equivalent quality is not less than his own cost. When a uniform
and standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member
of the Division shall use a system of accounting which conforms to
the principles of such system. The Divisional Committee shall, sub-
ject to the approval of the Administrator, determine the cost factors
to be included in such system.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section and to make provision
for the disposal of discontinued lines, seconds, and other sales to be
excepted from the application of this Section.
2. Members of the Division shall file with the Divisional Com-
mittee a schedule of prices and terms of sale for the products of the
Division, within thirty (30) days after the effective date of this
Code. Such price lists may be revised only upon five (5) days'
notice by registered mail to the Divisional Committee. The Divi-
sional Committee shall immediately send copies of all price lists filed
to all members of the Division.
Members of the Division shall not sell their products at lower
prices or on more liberal terms than set forth in their own price list.
When any member of the Division revises his price list, any other
member of the Division may revise his price list accordingly, to
become effective on the same date as the revised price list first filed.
The- Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.
3. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
tion 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 con-
(415)




.. ; ..:. ... .. :

416

strued 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.
(b) Using or substituting any material inferior in quality to that
specified by the purchaser of any product.
(c) Maliciously inducing or attempting to induce the breach of
an existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, com-
missions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of any product of the Division in
any manner which tends to deceive or mislead purchasers, with re-
spect to the grade, quality, quantity, origin, size, material content,
or preparation of such product.
f) Selling on more liberal terms than 3/10 E.O.M.
g) The failure to plainly mark seconds.
h) The making or causing or knowingly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
(i) Making sales upon any other terms than expressly set forth
in the invoice pertaining to such sales.
4. The selling or offering for sale of any product of the Division
on memorandum or on consignment or on conditional sale shall be
an unfair-trade practice.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.

IIl-HOURS

1. Members of the Division shall not operate for more than one
shift of forty (40) hours.




a


TABLE PAD DIVISION


Division No. 3

I-DEFINITION

The term "Table Pad Division as used herein includes all mem-
bers of the Industry producing table pads and/or table mats.
II-TRADE PRACTICES

L No member of the Division shall sell or exchange or offer to
Aell any product of the Division, except small novelty mats, below
his own cost of labor and raw materials except to meet the competi-
tion of any member of the Division whose price for a product of
equivalent quality is not less than his own cost. When a uniform
amn standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member of
the Division shall use a system of accounting which conforms to the
, principles of such system. The Divisional Committee shall, subject
to the approval of the Administrator, determine the cost. factors to
be included in such system.
The Divisional Committee shall have the power to suspend the
.operation of the provisions of this Section and to make provision
for the disposal of discontinued lines, seconds, and other sales to be
excepted from the application of this Section.
.The Administrator may suspend the operation of the provisions
of this Section after giving notice to the Division.
S. Members of the Division shall file with the Divisional Commit-
tee a schedule of prices and terms of sale for the products of the
,,Division, except small novelty mats, within thirty (30) days after
,the effective date of this Code. Such price lists may be revised only
upon five (5) days notice by registered mail to the Divisional Com-
mittee. The Divisional Committee shall immediately send copies
of all price lists filed to all members of the Division.
Members of the Division shall not sell their products at lower
prices or on more liberal terms than set forth in their own pride
list. When any member of the Division revises his price list, any
other member of the Division may revise his price list accordingly,
to become effective on the same date as the revised price list first filed.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.
The Administrator may suspend the operation of the provisions
of this Section after giving notice to the Division.
3. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
(417)






418


action of any employee, agent. or representative of another in rela-
tion 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 con-
strued 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.
(b) Using or substituting any material inferior in quality to that
specified by the purchaser of any product.
(c) Maliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his cus-
tomer or source of supply, or interference with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, commis-
sions. credits, or unearned discounts, whether in the form of money
or otherwise. or the secret extension to certain purchasers of special
services or privileges not extended to all purchasers on like terms
and conditions.
(e) The branding or marking of any product of the Division
in any manner which tends to deceive or mislead purchasers, with
respect to the grade, quality. quantity, origin, size. material content,
or preparation of such product.
(f) Selling on more liberal terms than 2% 10 days. end of month,
net 60 days.
(g) The failure to plainly mark seconds.
(h) The making or causing or knowingly permitting to be made
or published any false. materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the grade,
quality. quantity. substance. character, nature. origin, size. finish, or
preparation of any product of the Division. or the credit terms,
values. policies, or services of any member of the Division, or other-
wise. having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
(i) Making sales upon any other terms than expressly set forth
in the invoice pertaining to such sales.
(j) Making any allowances or discounts for advertising or for
payment for space in newspapers. magazines. guides, or directories on
behalf of any retailer to be used in promoting the sale of merchan-
dise to the consumer. The supplying of cuts, matrices, or window
cards shall. however, not be included in such prohibition. This
provision shall not be circumvented by advertising directly for the
benefit of any purchaser or particular group of purchasers. Nothing
herein, however, shall be deemed to prohibit any member of the Di-
vision from nationally or generally advertising his merchandise so
as to benefit all of his trade equally.













QUILTING DIVISION


Division No. 4
I-DEFINrTION

The term Quilting Division as used herein includes all members
of the Industry producing quilting and quilting products.
II-TRADE PnRATICES

1. No member of the Division shall sell or exchange or offer to sell
any product of the Division below his own cost, when and if same
may be determined as herein provided, except to meet the competi-
tion of any member of the Division whose price for a product of
equivalent quality is not less than his own cost. When a uniform
and standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member
of the Division shall use a system of accounting which conforms to
the principles of such system. The Divisional Committee shall, sub-
ject to the approval of the Administrator, determine the cost factors
to be included in such system.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section and to make provision
for the disposal' of discontinued lines, seconds, and other sales to be
didepted from the application of this Section.
2. Members of the Division shall file with the Divisional Com-
mittee a schedule of prices and terms of sale for the products of the
Division, within thirty (30) days after the effective date of this
C"de. Such price lists may be revised only upon five (5) days' notice
by registered mail to the Divisional Conunittee. The Divisional
Committee shall immediately send copies of all price lists filed
to all members of the Division.
Members of the Division shall not sell their products at lower
prices or on more liberal terms than set forth in their own price list.
-When any member of the Division revises his price list, any other
member of the Division may revise his price list accordingly, to
become effective on the same date as the revised price list first filed.
The following may be sold without filing revised price lists there-
for, but shall be reported to the Divisional Committee immediately
after sale: dropped lines and seconds.
The Divisional Committee shall have the power t(f suspend the
operation of the provisions of this Section.
3. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
(419)







420


tion 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 con-
strued 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.
(b) Using or substituting any material inferior in quality to that
specified by the purchaser of any product.
(c) Maliciously inducing or attempting to induce the breach of
an existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, com-
missions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of any product of the Division in
any manner which tends to deceive or mislead purchasers, with
respect to the grade, quality, quantity, origin, size, material content,
or preparation of such product.
(f) Selling on more liberal terms than 3/10 E.O.M.
(g) The failure to plainly stamp seconds.
(h) The making or causing or knowingly permitting to be nade
or published any false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the giade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-i
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
(i) Making sales upon any other terms than expressly set forth in
the invoice pertaining to such sales.
4. The selling or offering for sale of any product of the Division
on memorandum or on consignment or on conditional sale shall be
an unfair trade practice.
The Divisional Committee shall have the power to suspend thfi
operation of the provisions of this Section.












FABRIC AUTO EQUIPMENT DIVISION


Division No. 5
I-DEFINITION .

The term "Fabric Auto Equipment Division" as used herein
includes all members of the Industry producing auto seat and slip
covers, tire covers, top covers, side curtains, auto awnings, and fabric
accessories for automobiles.

II-TRADE PRACTICES

The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent, or representative of another in rela-
tion 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 com-
monly used for advertising, except so far as such articles are actually
used for commercial bribery, as hereinabove defined.
(b) The branding or marking of any product of the Division in
any manner which tends to deceive or mislead purchasers, with re-
spect to the grade, quality, quantity, origin, size, material content, or
preparation of such product.
(c) The making or causing or knowingly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
(d) The failure to plainly stamp seconds.
(e) Rendering a bill or statement of account which is inaccurate
i any particular.
(f) Failure to show the present 2% excise tax on the invoice as
a separate item, excepting in the case of those members of the Divi-
sion who sell to the jobbing or wholesale trade, who shall include
the excise tax in their selling price.
(g) The selling or offering for sale of any product of the Divi-
sion on memorandum or on consignment or on conditional sale shall
be an unfair trade practice.
The Divisional Committee shall have the power to suspend the
operation of the provision of this Section.
(h) Selling on more liberal terms than 2% 10 days E.O.M. net 30.
(i) Failure to invoice samples of complete products.
(421)




.. ": ; .. .: : .
"








COVERED CARPET PADDING DIVISION
Division No. 6

I-DEFINITION

The term Covered Carpet Padding Division as used herein in-
cludes all members of the Industry producing padded, quilted, paper,
and/or cloth covered carpet and rug linings and' stair pads.

II-TRADE PRACTICES

1. No member of the Division shall sell or exchange or offer to sell
any product of the Division below his own cost, when and if same
may be determined as herein provided, except to meet the competi-
tion of any member of the Division whose price for a product of
equivalent quality is not less than his own cost. When a uniform
and standard system of cost accounting, prescribed by the Divisional
Committee, shall be approved by the Administrator, every member of
the Division shall use a system of accounting which conforms to the
principles of such system. The Divisional Committee shall, subject
to the approval of the Administrator, determine the cost factors to
be included in such system.
The Divisional Committee shall have the power to suspend, thl
operation of the provisions of this Section and to make provision for
the disposal of discontinued lines, seconds, and other sales to be
excepted from the application of this Section.
2. Members of the Division shall file with the Divisional Com-
mittee a schedule of prices and terms of sale for the products of the
Division, within thirty (30) days after the effective date of this
Code. Such price lists may be revised only upon five (5) days
notice by registered mail to the Divisional Committee. The Divi-
sional Committee shall immediately send copies of all price lists
filed to all members of the Division.
Members of the Division shall not sell their products at lower
prices or on more liberal terms than set forth in their own price list.
When any member of the Division revises hi.s price list, any other
member of the Division may revise his price list accordingly, to
become effective on the same date as the revised price list first filed.
The following may be sold without filing revised price lists there-
for, but shall be reported to the Divisional Committee immediately
after sale: dropped lines.
The Divisional Committee shall have the power to suspend the
operation of the provisions of this Section.
3. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
(422)





423

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 hereinabove defined.
S (b) Using or substituting any material inferior in quality to that
specified by the purchaser of any product.
(c) Maliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his cus-
tomer or source of supply, or interference with or obstructing the
performance of any such contractual duties or services.
(d) The secret payment or allowance of rebates, refunds, com-
missions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.
(e) The branding or marking of any product of the Division in
any manner which tends to deceive or mislead purchasers, with
respect to the grade, quality, quantity, origin, size, material content,
Or.preparation of such product.
Sf). Selling on more liberal terms than 5/10 or 4/10/60 Ex.
* (g) The making or causing or knowingly permitting to be made or
published any false, materially inaccurate, or deceptive statement by
way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Division, or the credit terms,
values, policies, or services of any member of the Division, or other-
wisei having the tendency or capacity to mislead or deceive customers
or prospective customers.
(h) Making sales upon any other terms than expressly set forth
in the invoice pertaining to such sales.


w






.. ii .. 4


.. .. f: *.: :
S =* '....... ..

MOTOR ROBE DIVISION
Division No. 7

I-DEFINITION

The term "Motor Robe Division" as used herein incltds 'all
members of the Industry producing motor robes exclusive'of'. ibola
finished, fringed steamer rugs.
II-TRADE PRACTICES
1. All deliveries shall be F.O.B. factory or within the MetropQli-
tan District thereof.
2. The following Unfair Trade Practices are prohibited:
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent or representative of another in rela-
tion 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 com-
monly used for advertising except so far as such articles are actually
used for commercial bribery as hereinabove defined.
(b) The secret payment or allowance of rebates, refunds, com-
missions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.
(c) Selling on more liberal terms than 2% 10 days E.O.M. except
that for shipments made to points west of the Rocky Mountains
terms shall be 2% 10 days E.O.M. or 2% 10 days after receipt of
goods. Goods invoiced on and after the twenty-fifth of any month
may be dated as of the first day of the following month. No antic- :
ipation shall be allowed at a greater rate than 6% per annum.
(d) Making guarantees against price fluctuations.
(424) .

o

-.




Full Text

PAGE 1

UNIVERSITY OF FLORIDA3 1262 08486 7810pprovtu -UU .Registry No. 299-50NATIONAL RECOVERY ADMINISTRATIONCODE OF FAIR COMPETITIONFOR THELIGHT SEWING INDUSTRYEXCEPT GARMENTSAS APPROVED ON JANUARY 23, 1934RMEMBERWE DO OUR PARTUNITED STATESGOVERNMENT PRINTING OFFICEWASHINGTON: 1934For sale by the Superintendent of Documents, Washington, D.C. -Price 5 cents

PAGE 2

This publication is for sale by the Superintendent of Documents, GovernmentPrinting Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce.DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCEAtlanta, Ga.: 504 Post Office Building.Birmingham, Ala.: 257 Federal Building.Boston, Mass.: 1801 Customhouse.Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building.Chicago, Ill.: Suite 1706, 201 North Wells Street.Cleveland, Ohio: Chamber of Commerce.Dallas, Tex.: Chamber of Commerce Building.Detroit, Mich.: 801 First National Bank Building.Houston, Tex.: Chamber of Commerce Building.Indianapolis, Ind.: Chamber of Commerce Building.Jacksonville, Fla.: Chamber of Commerce Building.Kansas City, Mo.: 1028 Baltimore Avenue.Los Angeles, Calif.: 1163 South Broadway.Louisville, Ky.: 408 Federal Building.Memphis, Tenn.: 229 Federal Building.Minneapolis, Minn.: 213 Federal Building.New Orleans, La.: Room 225-A, Customhouse.New York, N.Y.: 734 Customhouse.Norfolk, Va.: 406 East Plume Street.Philadelphia, Pa.: 422 Commercial Trust Building.Pittsburgh, Pa.: Chamber of Commerce Building.Portland, Oreg.: 215 New Post Office Building.St. Louis, Mo.: 506 Olive Street.San Francisco, Calif.: 310 Customhouse.Seattle, Wash.: 809 Federal Office Building.(II)

PAGE 3

Approved Code No. 226CODE OF FAIR COMPETITIONFOR THELIGHT SEWING INDUSTRY EXCEPT GARMENTSAs Approved on January 23, 1934ORDERAPPROVING CODE OF FAIR COMPETITIONFOR THELIGHT SEWING INDUSTRY EXCEPT GARMENTSAn application having been duly made pursuant to and in fullcompliance with the provisions of Title I of the National IndustrialRecovery Act, approved June 16, 1933, for approval of a Code ofFair Competition for the Light Sewing Industry Except Garments,and hearings having been duly held thereon and the annexed reporton said Code, containing findings with respect thereto, having beenmade and directed to the President:NOW, THEREFORE, on behalf of the President of the UnitedStates, I, Hugh S. Johnson, Administrator for Industrial Recovery,pursuant to authority vested in me by Executive Orders of thePresident, including Executive Order No. 6543-A, dated December30, 1933, and otherwise; do hereby incorporate by reference saidannexed report and do find that said Code complies in all respectswith the pertinent provisions and will promote the policy and pur-poses of said Title of said Act; and do hereby order that said Codeof Fair Competition be and it is hereby approved.HUGH S. JOHNSON,Administrator for Industrial Recovery.Approval recommended:A. D. WHITESIDE,Division Advbinistrator.WASHINGTON, D.C.,January 23, 1934.353680---313-113-34 (403)

PAGE 4

THE PRESIDENT,The White Hoise.SIR: This is a report on the Hearing on the Code of Fair Com-petition for the Light Sewing Industry Except Garments, held inaccordance with the provisions of the National Industrial RecoveryAct, in the Chinese Room of the Mayflower Hotel, on November 28,1933. The Code which is attached was presented by duly qualifiedand authorized representatives of the Industry, complying with stat-utory requirements, said to represent 75 percent or more in volume ofeach division of the Industry.In accordance with the customary procedure every person who hadfiled a request for an appearance was freely heard in public, and allstatutory and regulatory requirements were complied with.This Code is a combination of a number of separate Codes origi-nally submitted to the Administration. These separate Codes wouldhave placed several divisions of this Industry under completely sepa-rate documents. Should these Codes have been put through sepa-rately, manufacturers of more than one of the articles now includedwithin this Code would have been obliged to operate under severalCodes. Furthermore, a large number of small sewn articles notlisted specifically in any proposed Code niight not have been broughtunder the jurisdiction of the Act.The tendency of Industry Groups and Associations was to submitCodes for their principal items of manufacture, but to overlook orfail to include the many small items made by them. It would bealmost impossible to enumerate these many small items in separateCodes. Had they been included in the definition of the larger sepa-rate sewing codes other than garments, manufacturers would havefound themselves operating under a multiplicity of such codes. Ac-cordingly, the Code submitted herewith is designed to coordinate allsewn articles other than garments that have not or are not beinggranted separate Codes.THE INDUSTRYThe Industry as represented by the seven divisions now specificallyincluded in the Code comprises about 232 concerns, having an invest-ment in 1933 of $16,323,400. In 1928 the Industry provided employ-ment for 10,821 employees. This figure has declined to about 8,404workers during 1933. The aggregate annual sales have fallen from$42,55370 in 1928 to $30,534,100 in 1932.PROVISIONS OF THE CODEThe Code provides for a mmuinimn wage of 32%, cents per hour.Employees in the Fabric Auto Equipment Division, however, maybe paid at tlhe' rate of 30 cents per hour in the South. The weekly(404)

PAGE 5

405compensation for employment in excess of the mininmum wagesprovided in this Code shall not be reduced although the hours ofwork have been reduced and provision is made for increasing thepay for such employment by an equitable readjustment of all payschedules.Office employees are permitted to work 48 hours in any one weekprovided they do not work more than 40 hours per week averagedover a period of two months. Hours of work for factory employeesare limited to 40 hours in any one week and 8 hours in any 24-hourperiod except that these employees are permitted to work 48 hoursper week for not more than six weeks in any six months' period pro-vided that the number of hours shall not be in excess of 40 hours perweek averaged over a six months' period, and provided further thatall hours worked in excess of 40 hours in any one week shall be paid for at not less than one and one third (11/3) times the normal rate.Employees in a supervisory capacity receiving $35 per week or more,watchmen and outside salesmen are not limited as to hours. Em-ployees on emergency repair work are excepted from the maximumhour provisions but are to be paid time and one third for overtimework. Maintenance employees are permitted to work 44 hours perweek. Operations are limited to one shift of 40 hours in the MattressCover Division and two shifts of 40 hours each per week in all theother divisions.Hours of work have been reduced from 47 to 40 by the application of this Code. According to the Division of Research andPlanning, the actual number of hours that this Industry will operateunder the provisions of the Code will be approximately 37 hours perweek, so that the effect will be to reduce the hours of work between15 and 20 percent and increase employment in the same proportion.Average wages in this Industry will be increased from $13.00 toapproximately $15.00 per week. This represents a substantial in-crease since the minimum wages must be raised considerably toaccount for this change in average wages.Representation on the Code Authority is provided for all membersof the Industry. The Code sets up Divisional Committees to admin.-ister the supplemental fair trade practices for the separate divisionsof this Industry.There are no highly restrictive provisions in the Code itself.Provision is made for prohibiting the sale of merchandise belowcost in certain divisions when and if a uniform and standard systemof cost accounting is approved by the Administrator. No suchprovision, however, will become effective without further approvalof the Administrator.FINDINGSI find that:(a) Said Code is well designed to promote the policies andpurposes of Title I of the National Industrial Recovery Act, includ-ing removal of obstructions to the free flow of interstate and foreigncommerce which tend to diminish the amount thereof and will pro-vide for the general welfare by promoting the organization of indus-try for the purpose of cooperative action among the trade groups,by inducing and maintaining united action of labor and manage-

PAGE 6

406ment under adequate governmental sanction and supervision, byeliminating unfair competitive practices, by promoting the fullestpossible utilization of the present productive capacity of industries,by avoiding undue restriction of production (except as may betemporarily required), by increasing the consumption of industrialand agricultural products through increasing purchasing power, byreducing and relieving unemployment, by improving standards oflabor, and by otherwise rehabilitating industry.(b) Said Industry normally employs not more than 50,000 em-ployees; and is not classified by me as a major industry.(c) The Code as approved complies in all respects with the perti-nent 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; and that the applicantassociations are industrial associations truly representative of theaforesaid Industry; and that said associations impose no inequitablerestrictions on admission to membership therein.(d) The Code is not designed to and will not permit monopoliesor monopolistic practices.(e) The Code is not designed to and will not eliminate or oppresssmall enterprises and will not operate to discriminate against them.(f) Those engaged in other steps of the economic process have notbeen deprived of the right to be heard prior to approval of saidCode.For these reasons, this Code of Fair Competition for the LightSewing Industry Except Garments has been approved.Respectfully,HuGi S. JohNsoN,Administrator.JANUARY 23, 1934.

PAGE 7

CODE OF FAIR COMPETITIONFOR THELIGHT SEWING INDUSTRY EXCEPT GARMENTSARTICLE I-PURPOSESTo effectuate the policies of Title I of the National IndustrialRecovery Act, the following provisions are established as a Codeof Fair Competition for the Light Sewing Industry Except Gar-ments, and shall be the standard of fair competition for suchIndustry and shall be binding upon every member thereof.ARTICLE II-DEFINITIONS1. The term "Light Sewing Industry Except Garments" or" Industry " as used herein includes the manufacture and originalsale of all sewn textile articles and/or table pads and/or table iatsexcept wearing apparel and excepting such articles as are governedby the provisions of other codes of fair competition, and shallinclude such related branches or subdivisions as may from time totime be included under the provisions of this code by the Presidentof the United States after such notice and hearing as he mayprescribe.2. The terms " table pad " and " table mat " as used herein aredefined to mean any mat manufactured for use in protecting the sur-face of tables against heat, liquids, or marring, composed of awater-proof surface and an insulating element such as asbestos, cork,pasteboard, felt paper, or corrugated paper.3. The term " member of the Industry " includes, but withoutlimitation, any individual, partnership, association, corporation, orother form of enterprise engaged in the Industry either as an em-ployer or on his or its own behalf, and includes anyone who fur-nishes or contracts for labor as a part of a larger or further operationin the process of manufacturing any of the products of this Industry.4. The term " employee as used herein includes any and all per-sons engaged in the Industry however compensated, except a memberof the Industry.5. The term " employer " as used herein includes anyone by whomany such employee is compensated or emn-ployed.6. The term " productive machinery " as used herein and as appliedto the divisions of this Industry is defined:(a) For the Quilting Division: Quilting machines.(b) For the Comfortable Division: Hand-guided sewing machinesand hand-needle work equipment, and automatic quilting machines,(407)

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408(c) Fer the Covered Carpet Padding Division: Carpet lining,sewing and quilting machines, garnetts, lappers, pickers, stitchingand bending machines, and cloth-cutting machines.7. The term "Act " and "Administrator " as used herein meanrespectively Title I of the National Industrial Recovery Act and theAdministrator for Industrial Recovery.ARTICLE 111-HoURS1. No office employee shall work or be permitted to work in excessof forty (40) hours per week, averaged over a period of two months,or forty-eight (48) hours in any one week or eight (8) hours in anytwenty-four (24) hour period.2. No other employee, except as hereinafter provided, shall workor be permitted to work in excess of forty (40) hours in any one weekor eight t (8) hours in any twenty-four (24) hour period, except thatsuch employees may be permitted to work forty-eight (48) hours perweek for not more than six (6) weeks in any six-month period, pro-vided that the number of hours shall not be in excess of forty (40)hours per week averaged over a six months' period. Work done inexcess of forty (40) hours in any one week, however, shall be paid for at not less than one and one third (1%) times the normal rate.3. The maximum hours fixed in the foregoing sections shall notapply to:(a) Executives and employees in a managerial or supervisory ca-pacity who receive thirty-five dollars ($35.00) or more per week,watchmen, and outside salesmen.(b) Repair-shop crews, engineers, electricians, and firemen, whoshall be permitted to work not in excess of forty-four (44) hours perweek.(c) Employees on emergency maintenance or emergency repairwork involving breakdowns or protection of life or property, but inany such special case overtime shall be paid for at not less than oneand one third (11/) times the normal rate.At the end of each calendar month every employer shall report tothe Code Authority hereinafter provided for, in such detail as maybe required, the number of man-hours worked in that month in casesof emergency and the ratio which said emergency man-hours bear tothe total number of man-hours of labor during said month.4. Members of the Industry shall not operate for more than two(2) shifts of forty (40) hours each per week, except as providedhereafter in supplemental provisions.5. No employee shall work or be permitted to work for a totalnumber of hours in excess of the number of hours prescribed foreach week and day, whether employed by one or more employers.ARTICLE IV-WAGES1. No employee shall be paid at less than the rate of 321/2 centsper hour except that employees in the Fabric Auto Equipment Divi-sion may bo paid at the rate of not less than 30 cents per hour in theSouthern States., which shall include only the States of Virginia,North Carini ma. SOuth Carolina, Georgia, Florida, Alabama, Mis-

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409sissippi, Tennessee, Kentucky, Louisiana, Arkansas, Oklahoma,Texas, and the District of Columbia.2. This Article establishes a minimum rate of pay, regardless of whether an employee is compensated on a time-rate, piecework, orother basis.3. The weekly rate of compensation for employment now in excessof the minimum wages herein provided shall not be reduced (notwithstanding that the hours worked in such employment may behereby reduced), and the pay for such employment shall beincreased by an equitable readjustment of all pay schedules.4. Female employees performing substantially the same work asmale employees shall receive the same rates of pay as male employees.5. A person whose earning capacity is limited because of age orphysical or mental handicap may be employed on light work at awage below the minimum established by this Code if the employerobtains from the State authority designated by the United StatesDepartment of Labor a certificate authorizing his employment atsuch wages and for such hours as shall be stated in the certificate.Each employer shall file with the Code Authority a list of all suchpersons employed by him.ARTICLE V-GENERAL LABOR PROVISIONS1. No person under sixteen (16) years of age shall be employed inthis Industry. In any State any employer shall be deemed to havecomplied with this provision if he shall have on file a certificate orpermit duly issued by the Authority in such State, empowered toissue employment or age certificates or permits, showing that theemployee is of the required age.2. Employees shall have the right to organize and bargain collec-tively through representatives of their own choosing, and shall befree from the interference, restraint, or coercion of employers oflabor, or their agents, in the designation of such representatives or inself-organization or in other concerted activities for the purpose ofcollective bargaining or other mutual aid or protection.3. No employee and no one seeking employment shall be requiredas a condition of employment to join any company union or to refrainfrom joining, organizing, or assisting a labor organization of his ownchoosing.4. Employers shall comply with the maximum hours of labor, mini-mum rates of pay, and other conditions of employment, approved orprescribed by the President.5. Within each State members of the Industry shall comply withany laws of such State imposing more stringent requirements onemployers regulating the age of employees, wages, hours of work,or health, fire, or general working conditions than under this Code.6. Employers shall not reclassify employees or duties of occupa-tions performed by employees so as to defeat the purposes of the Act.7. Each employer shall post in conspicuous places accessible toemployees full copies of this Code.8. Until adoption of further provisions of this Code that mayprove necessary in order to prevent any improper speeding up of the35368*-313-113-34--

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410work (stretch-outs) no manufacturing employee in the Industry shallbe required to do any work in excess of the practice as to the class ofwork of such employee prevailing on July 1, 1933, or prior to the Share-The-Work movement, unless such increase is submitted to andapproved by the Code Authority created by this Code, and by theAdministrator.9. No employer shall have work done or labor performed on anyarticle produced in this Industry in the home of a worker, excepthand work only as follows:(1) Candlewick bedspreads.(2) Hand quilted textiles for a period of six months, but there-after only if specifically exempted by the Administrator.ARTICLE VI-ADMINISTRATIONThere shall forthwith be constituted a Code Authority.1. Organization and constitution of Code Authority:(a) The membership of the Code Authority shall include seven(7) members (which number may be increased to ten (10) membersif and when necessity arises therefor by further inclusion of addi-tional Divisions within this Code) to be selected in a manner approved by the Administrator from the following Divisions:Quiltin,. 1 Member.Mattress Covers, 1 Member.Comfortables, 1 Member.Fabric Auto Equipment, 2 Members.Other Members of the Industry, 1 Member.In additon to the membership as above provided, there may bethree (3) additional members without vote appointed by the Admin-istrator, one of whomni may be appointed on the nomination of theLabor Advisory Board of the NRA.(b) Divisional Committees consisting of not more than seven (7)members each shall be selected by each of the following divisions ofthis Industry in a manner approved or prescribed by the Adminis-trator: Comfortable Division, Covered Carpet Padding Division,Fabric Auto Equipment Division, Mattress Cover Division, TablePad Division, and Quilting Division. New divisions of the Industrymay be established on the recommendation of the Code Authoritywith the approval of the Administrator. The Administrator mayappoint up to three members, without vote, to each of the DivisionalCommittees.(c) In order that the Code Authority and the Divisional Com-mittees shall at all times be truly representative of the Industry andin other respects comply with the provisions of the Act, the Adminis-trator may provide such hearings as he may deem proper; andthereafter if he shall find that the Code Authority or the DivisionalCommittees are not truly representative or do not in other respectscomply with the provisions of the Act, may require an appropriatemodification in the method of selection of the Code Authority or of the Divisional Committees.(d) Each trade or industrial association directly or indirectlyparticipating in the selection or activities of the Code Authorityor a Divisional Committee shall (1) impose no inequitable restric-

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411tions on membership, and (2) submit to the Administrator truecopies of its articles of association, bylaws, regulations, and anyamendments when made thereto, together with such other inforia-tion as to membership, organization, and activities as the Adminis-trator may deem necessary to effectuate the purposes of the Act.2. The Code Authority and the Divisional Committees shall havethe following duties and powers:(a) The Code Authority shall cooperate with the Administratorin the administration of the provisions of this Code. The DivisionalCommittees, subject to the general approval of the Code Authority,shall cooperate with the Administrator in the administration ofthe supplemental provisions applicable to their respective Divisions.(b) The Code Authority may from time to time present to theAdministrator recommendations based on conditions in the Industryas they may develop which will tend to effectuate the operation ofthe provisions of this Code. The Divisional Committees may present to the Administrator recommendations concerning their respectivesupplemental provisions. Such recommendations, when approvedby the Administrator, after notice to and after opportunity given to the Divisional Committees of all Divisions affected to be heard,shall have the same force and effect as any of the provisions of thisCode. Such recommendations may include recommendations foruse by all members of the Industry in their respective Divisions, of an N.R.A. label and for the establishment of the necessarymachinery to manufacture and issue the same.(c) The Code Authority shall collect statistics covering numberof employees, wage rates, employee earnings, hours of work, andsuch other data as may be prescribed or approved by the Adminis-trator and may designate the Divisional Committees as the agenciesto collect such statistics.(d) Members of the Industry shall be entitled to share in theselection of the members of the Code Authority and of their ap-propriate Divisional Committees by assenting to the requirementsof this Code and of any supplemental provisions thereto, and by pay-ing their reasonable share of the expenses of the administration ofthis Code and of such supplemental provisions.The reasonable share of the expenses of the Code Authority shallbe determined by the Code Authority on the basis of dollar volumeof business, subject to review by the Administrator. Such expensesshall be collected by the appropriate Divisional Committee frommembers of the Industry who are members of the above-mentionedDivisions and by the Code Authority from members of the Industrynot ipembers of such Divisions.The reasonable share of the expenses of the Divisional Committeesshall be determined by the appropriate Divisional Committee onthe basis of dollar volume of business, subject to review by the Ad-ministrator. Such expenses shall be collected by the appropriateDivisional Committee.(e) Nothing contained in this Code shall constitute the membersof the Code Authority or of the Divisional Committees partners forany purpose, nor shall any member of the Code Authority or of theDivisional Committees be liable in any manner to any one for any act of any other member, officer, agent, or employee of the Code

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412Authority, or of the Divisional Committees, nor shall any memberof the Code Authority, or of the Divisional Committees, exercisingreasonable diligence in the conduct of his duties hereunder be liableto any one for any action or omission to act under this Code, exceptfor his own willful misfeasance or nonfeasance.3. In addition to the information required to be submitted tothe Code Authority, there shall be furnished to government agenciessuch statistical information as the Administrator may deem neces-sary for the purposes recited in Section 3 (a) of the Act.4. If the Administrator shall determine that any action of aCode Authority, Divisional Committe, or any agency thereof isunfair or unjust or contrary to public interest, the Administratormay require that such action be suspended for a period of not toexceed thirty days to afford an opportunity for investigation ofthe merits of such action, and further consideration by such CodeAuthority, Divisional Committee, or agency, pending final actionwhich shall be taken only upon approval by the Administrator.ARTICLE VII--TRADE PRACTICES1. The violation of any provision of this Code or of any supplemental provisions thereto shall constitute an unfair trade practice.ARTICLE VIII-MODIFICATION .1. This Code and all the provisions thereof are expressly madesubject to the right of the President, in accordance with the pro-visions of subsection (b) of Section 10 of the Act, from time to timeto cancel or modify any order, approval, license, rule, or regula-tion issued under said Act.2. This Code, except as to provisions required by the Act, maybe modified on the basis of experience or changes in circumstances,such modifications to be based upon application to the Administrator,and such notice and hearing as he shall specify, and to become effective on aproval of the Administrator.ARTICLE IX-MONOPOLIESNo provision of this Code shall be so applied as to permit mo-nopolies or monopolistic practices, or to eliminate, oppress, or dis-criminate against small enterprises.ARTICLE X-EFFECTIVE DATEThis Code shall become effective on the tenth day after approval.Approved Code No. 226.Registry No. 299-50.

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COMFORTABLE DIVISIONDivision No. 1I-DEFINITIONThe term " Comfortable Division" as used herein includes allmembers of the Industry producing comfortables and comforts.11-TRADE PRACTICES1. No member of the Division shall sell or exchange or offer tosell any product of the Division below his own cost, when and ifsame may be determined as herein provided, except to meet the com-petition of any member of the Division whose price for a productof equivalent quality is not less than his own cost. When a uniformand standard system of cost accounting, prescribed by the DivisionalCommittee, shall be approved by the Administrator, every memberof the Division shall use a system of accounting which conformsto the principles of such system. The Divisional Committee shall,subject to the approval of the Administrator, determine the costfactors to be included in such system.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section and to make provisionfor the disposal of discontinued lines, seconds, and other sales to beexcepted from the application of this Section.2. Members of the Division shall file with the Divisional Comi-mittee a schedule of prices and terms of sale for the products of theDivision, within thirty (30) days after the effective date of thisCode. Such price lists may be revised only upon five (5) days' noticeby registered mail to the Divisional Committee. The DivisionalCommittee shall immediately send copies of all price lists filed to allmembers of the Division.Members of the Division shall not sell their products at lower prices or on more liberal terms than set forth in their own price list.When any member of the Division revises his price list, any othermember of the Division may revise his price list accordingly, to be-come effective on the same date as the revised price list first filed.The following may be sold without filing revised price lists there-for, but shall be reported to the Divisional Committee immediatelyafter sale: dropped lines and seconds.The Divisional Committe shall have the power to suspend theoperation of the provisions of this Section.3. The following Unfair Trade Practices are prohibited:(a) Giving, permitting to be given, or directly offering to give,anything of value for the purpose of influencing or rewarding theaction of any employee, agent, or representative of another in rela-iion to the business of the employer of such employee, the principal(413)

PAGE 14

414of such agent or the represented party, without the knowledge ofsuch employer, principal, or party. This provision shall not be con-strued to prohibit free and general distribution of articles commonlyused for advertising except so far as such articles are actually usedfor commercial bribery as hereinabove defined.(b) Using or substituting any material inferior in quality to thatspecified by the purchaser of any product.(c) Maliciously inducing or attempting to induce the breach ofan existing oral or written contract between a competitor and hiscustomer or source of supply or interfering with or obstructing theperformance of any such contractual duties or services.(d) The secret payment or allowance of rebates, refunds, com-missions, credits, or unearned discounts, whether in the form ofmoney or otherwise, or the secret extension to certain purchasers ofspecial services or privileges not extended to all purchasers on liketerms and conditions.(e) The branding or iarking of any product of the Division in any manner which tends to deceive or mislead purchasers, withrespect to the grade, quality, quantity, origin, size, material content, or preparation of such product.(f) Selling on more liberal terms than 3/10 E.O.M.(g) The failure to plainly mark seconds.(h) The making or causing or knowingly permitting to be madeor published any false, materially inaccurate, or deceptive statementby way of advertisement or otherwise, whether concerning the grade,quality, quantity, substance, character, nature, origin, size, finish,or preparation of any product of the Division, or the credit terms,values, policies, or services of any member of the Division, or other-wise, having the tendency or capacity to mislead or deceive cus-tomers or prospective customers.(i) Making sales upon any other terms than expressly set forthin the invoice pertaining to such sales.4. The selling or offering for sale of any product of the Divisionon memorandum or on consignment or on conditional sale shall be anunfair trade practice.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section.

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MATTRESS COVER DIVISIONDivision No. 2I-DEFINITIONThe term " Mattress Cover Division " as used herein includes allmembers of the Industry producing mattress covers.11-TRADE PRACTICES1. No member of the Division shall sell or exchange or offer tosell any product of the Division below his own cost, when and if samemay be determined as herein provided, except to meet the compe-tition of any member of the Division whose price for a product ofequivalent quality is not less than his own cost. When a uniformand standard system of cost accounting, prescribed by the DivisionalCommittee, shall be approved by the Administrator, every memberof the Division shall use a system of accounting which conforms tothe principles of such system. The Divisional Committee shall, sub-ject to the approval of the Administrator, determine the cost factorsto be included in such system.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section and to make provisionfor the disposal of discontinued lines, seconds, and other sales to beexcepted from the application of this Section.2. Members of the Division shall file with the Divisional Com-mittee a schedule of prices and terms of sale for the products of the Division, within thirty (30) days after the effective date of thisCode. Such price lists may be revised only upon five (5) days'notice by registered mail to the Divisional Committee. The Divi-sional Committee shall immediately send copies of all price lists filedto all members of the Division.Members of the Division shall not sell their products at lower prices or on more liberal terms than set forth in their own price list.When any member of the Division revises his price list, any othermember of the Division may revise his price list accordingly, tobecome effective on the same date as the revised price list first filed.The. Divisional Committee shall have the power to slspefnd theoperation of the provisions of this Section.3. The following Unfair Trade Practices are prohibited:(a) Giving, permitting to be given, or directly offering to give,anything of value for the purpose of influencing or rewarding theaction of any employee, agent, or representative of another in rela-tion to the business of the employer of such employee, the principalof such agent, or the represented party, without the knowledge ofsuch employer, principal, or party. This provision shall not be con-(115)

PAGE 16

416strued to prohibit free and general distribution of articles commonlyused for advertising except so far as such articles are actually usedfor commercial bribery as hereinabove defined.(b) Using or substituting any material inferior in quality to thatspecified by the purchaser of any product.(c) Maliciously inducing or attempting to induce the breach ofan existing oral or written contract between a competitor and hiscustomer or source of supply, or interfering with or obstructing theperformance of any such contractual duties or services.(d) The secret payment or allowance of rebates, refunds, com-missions, credits, or unearned discounts, whether in the form ofmoney or otherwise, or the secret extension to certain purchasers ofspecial services or privileges not extended to all purchasers on liketerms and conditions.(e) The branding or marking of any product of the Division inany manner which tends to deceive or mislead purchasers, with re-spect to the grade, quality, quantity, origin, size, material content, or preparation of such product.f) Selling on more liberal terms than 3/10 E.O.M.g) The failure to plainly mark seconds.(h) The making or causing or knowingly permitting to be made or published any false, materially inaccurate, or deceptive statementby way of advertisement or otherwise, whether concerning the grade,quality, quantity, substance, character, nature, origin, size, finish, orpreparation of any product of the Division, or the credit terms,values, policies, or services of any member of the Division, or other-wise, having the tendency or capacity to mislead or deceive customersor prospective customers.(i) Making sales upon any other terms than expressly set forthin the invoice pertaining to such sales.4. The selling or offering for sale of any product of the Divisionon memorandum or on consignment or on conditional sale shall bean unfair-trade practice.The Divisional Committee shall have the power to suspend the operation of the provisions of this Section.III-HouRs1. Members of the Division shall not operate for more than oneshift of forty (40) hours.

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TABLE PAD DIVISIONDivision No. 3I-DEFINITIONThe term " Table Pad Division " as used herein includes all mem-bers of the Industry producing table pads and/or table mats.II-TRADE PRACTICES1. No member of the Division shall sell or exchange or offer tosell any product of the Division, except small novelty mats, belowhis own cost of labor and raw materials except to meet the competi-tion of any member of the Division whose price for a product ofequivalent quality is not less than his own cost. When a uniform and standard system of cost accounting, prescribed by the DivisionalCommittee, shall be approved by the Administrator, every member ofthe Division shall use a system of accounting which conforms to th3principles of such system. The Divisional Committee shall, subjectto the approval of the Administrator, determine the cost factors tobe included in such system.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section and to make provisionfor the disposal of discontinued lines, seconds, and other sales to beexcepted from the application of this Section.The Administrator may suspend the operation of the provisionsof this Section after giving notice to the Division.2. Members of the Division shall file with the Divisional Commit-tee a schedule of prices and terms of sale for the products of theDivision, except small novelty mats, within thirty (30) days afterthe effective date of this Code. Such price lists may be revised onlyupon five (5) days notice by registered mail to the Divisional Com-mittee. The Divisional Committee shall immediately send copiesof all price lists filed to all members of the Division.Members of the Division shall not sell their products at lowerprices or on more liberal terms than set forth in their own pridelist. When any member of the Division revises his price list, anyother member of the Division may revise his price list accordingly,to become effective on the same date as the revised price list first filed.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section.The Administrator may suspend the operation of the provisionsof this Section after giving notice to the Division.3. The following Unfair Trade Practices are prohibited:(a) Giving, permitting to be given, or directly offering to give,anything of value for the purpose of influencing or rewarding the(417)

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41Saction any e:j 1-ybv. agent. or rep -entative of another in rela-tion tth1 ?:i , the employer of -uch employee. the principalof 0u1 1 aLt. 7r the reprented party. without the knowlede ofmh empi xer. prin~ir a!. c r party. Thiprovision shall not be con-*tr :e 1 To r.t _ ree and _neral dstribtion of articles commonlyu-Pe x t s far aiuch articev are actually usedb L rb-ti't=ting mv material inferior in quality to thatpec:ne I s the purchar of any product.MaiiEi indu ne or attenpting to induce the breach of an-t~In ral .r written contract between a competitor and his cus-tomner or u c r LC ITa .or imtererence with or onstructing theA The cret paYment or almwance of rebates. refunh. commis-r-. rredts. or un~earned dcournt. whether in the form of moneyr othe: -e. or the e r-t extensi-n to certain purchasers of special_erv!es r prvilega not exten.ded to all purcha-er. on like termse The I ran ,g or :marking of any prI lqct d the Divisionin an maner Whih teis to dSeceive or niAlad purchasers. withrepeu to, the er: le. quality. quantity. ..rigin. Aze. maaterial content.f SIing un mnre liberal tvrmthan Y 1? day .end of month,i )The failure to plainlxmark scuds.h The making or cauig or krnowingly permitting to be mader11 pub ishe any ale. materially mnacu!rateor deceptive -tatementby -ay of aer-tien.t r otherwise, whether c mn erring the grade.quality. quantity. subVtarne. chara cr. nature. origin, ize. fnih. orpreplaratio n of any Y prou t of the Diviion. or the credit terms.Yaltes. p IcIeX. or service of any member oi the Division. or other-wise. hanr the tendncy or capacity to miled or deceive cus-tmer -r pro etIX cutOmer ,MI~ i Mkng sales upon any other termthin expre-sly wet forthin te in yc pertining to *su h pale-.jMaki any alL wance1 or di-jount1 for advertiing or forymet fir pae in nwpaper .magazine. guide, or directories onblhaif of any retailer to be used in promoting the sale of mierchan-dise to the cn-umier. The -up plying of cut .matrices, or windowcardN -1hall, h vwever. not be included in such prohibition. Thisprcvii n 1hall not be iroumvented by adveribing dire:tlVy for thebernent f ar e uarcaser or particular group of pur.chaser-. Nothingherein. I evr. hal be deemd to prohibit any member of the Di-vision Iro. natienally or enrrallv advertising his merchandise soas to -eei l f hstrad oceually

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QUILTING DIVISIONDivision No. 4I-DEFiNITIONThe term "Quilting Division as used herein includes all membersof the Industry producing quilting and quilting products. II-TRADE PRACTICES1. No member of the Division shall sell or exchange or offer to sellany product of the Division below his own cost, when and if samemay be determined as herein provided, except to meet the coupeti-tion of any member of the Division whose price for a product ofequivalent quality is not less than his own cost. When a uniformand standard system of cost accounting. prescribed by the DivisionalCommittee. shall be approved by the Adini-trator, every memberof the Division >hall use a system of aeounting which conforntothe principles of such system. The Divisional Committee -hall. -ub-ject to the approval of the Administratotr, determine the cost factorsto be included in such system.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section and to make provisi-nfor the disposal uf discontinued lines. seconds. and other pales to beexcepted from the application of thi, Section.2. Members of the Division shall file with the Divisional Com-mittee a schedule of pries and term> of sale for the proIi-of theDivision. within thirty (30) days after the effective date of thisCode. Such price lists inay be revi ?d only upon five (5) days noticeby registered mail to the Divisional Conimittee. The Divi-ionalCommittee shall immediately !end o piu .f all price list> filedto all members of the Division.Members of the Division shall not sell their prodht, at lowerprices or on iore liberal term , than set forth in their own price li-t.'When any member of the Division reviseisz police list. any othermember of the Division may revie his price list accordingLv. tobecome effective on the same late athe revi-ed price list fir-t fileI.The following may be sold without filing revi-ed price listthere-for. but shall be reported to the Divisional (l'l nlitttae in u1dlatelyafter sale: dropped lines and seconds.The Divisional Committee shall have the pow,?, tc' >.pind theoperation of the provisions of this Section.3. The following Unfair Trade Practices are prohibited:(a) Giving, perinittingz to e given. or directly rvfering to 2'e.anything of value for the purpose of influencing or rewarding' theaction of any employee, agent, or representative of anio&ther in rela-

PAGE 20

420tion to the business of the employer of such employee, the principalof such agent or the represented party, without the knowledge ofsuch employer, principal, or party. This provision shall not be con-strued to prohibit free and general distribution of articles commonlyused for advertising except so far as such articles are actually usedfor commercial bribery as hereinabove defined.(b) Using or substituting any material inferior in quality to thatspecified by the purchaser of any product.(c) Maliciously inducing or attempting to induce the breach ofan existing oral or written contract between a competitor and hiscustomer or source of supply, or interfering with or obstructing theperformance of any such contractual duties or services.(d) The secret payment or allowance of rebates, refunds, com-missions, credits, or unearned discounts, whether in the form ofmoney or otherwise, or the secret extension to certain purchasers ofspecial services or privileges not extended to all purchasers on liketerms and conditions.(e) The branding or marking of any product of the Division inany manner which tends to deceive or mislead purchasers, withrespect to the grade. quality, quantity, origin, size, material content,or preparation of such product.(f) Selling on more liberal terms than 3/10 E.O.M.(g) The failure to plainly stamp seconds.(h) The making or causing or knowingly permitting to be madeor published any false, materially inaccurate, or deceptive statementby way of advertisement or otherwise, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish,or preparation of any product of the Division, or the credit terms,values, policies, or services of any member of the I)ivision, or other-wise, having the tendency or capacity to mislead or deceive customers or prospective customers.(i) Making sales upon any other terms than expressly set forth inthe invoice pertaining to such sales.4. The selling or offering for sale of any product of the Divisionon memorandum or on consignment or on conditional sale shall bean unfair trade practice.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section.

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FABRIC AUTO EQUIPMENT DIVISION Division No. 5I-DEFNITIONThe term " Fabric Auto Equipment Division " as used hereinincludes all members of the Industry producing auto seat and slipcovers, tire covers, top covers, side curtains, auto awnings, and fabricaccessories for automobiles.II-TRADE PRACTICEsThe following Unfair Trade Practices are prohibited:(a) Giving, permitting to be given, or directly offering to give,anything of value for the purpose of influencing or rewarding theaction of any employee, agent, or representative of another in rela-tion to the business of the employer of such employee, the principalof such agent or the represented party, without the knowledge ofsuch employer, principal, or party. This provision shall not beconstrued to prohibit free and general distribution of articles com-monly used for advertising, except so far as such articles are actuallyused for commercial bribery, as hereinabove defined.(b) The branding or marking of any product of the Division inany manner which tends to deceive or mislead purchasers, with re-spect to the grade, quality, quantity, origin, size, material content, orpreparation of such product.(c) The making or causing or knowingly permitting to be made or published any false, materially inaccurate, or deceptive statementby way of advertisement or otherwise, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish,or preparation of any product of the Division, or the credit terms,values, policies, or services of any member of the Division, or other-wise, having the tendency or capacity to mislead or deceive customersor prospective customers.(d) The failure to plainly stamp seconds.(e) Rendering a bill or statement of account which is inaccuratein any particular.(f) Failure to show the present 2% excise tax on the invoice asa separate item, excepting in the case of those members of the Divi-sion who sell to the jobbing or wholesale trade, who shall includethe excise tax in their selling price.(g) The selling or offering for sale of any product of the Divi-sion on memorandum or on consignment or on conditional sale shallbe an unfair trade practice.The Divisional Committee shall have the power to suspend the operation of the provision of this Section.(h) Selling on more liberal terms than 2% 10 days E.O.M. net 30.(i) Failure to invoice samples of complete products.(421)

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COVERED CARPET PADDING DIVISIONDivision No. 6I-DEFINITIONThe term " Covered Carpet Padding Division " as used herein in-cludes all members of the Industry producing padded, quilted, paper,and/or cloth covered carpet and rug linings and stair pads.II-TRADE PRACTICES1. No member of the Division shall sell or exchange or offer to sellany product of the Division below his own cost, when and if samemay be determined as herein provided, except to meet the competi-tion of any member of the Division whose price for a product ofequivalent quality is not less than his own cost. When a uniformand standard system of cost accounting, prescribed by the DivisionalCommittee, shall be approved by the Administrator, every member of the Division shall use a system of accounting which conforms to theprinciples of such system. The Divisional Committee shall, subjectto the approval of the Administrator, determine the cost factors tobe included in such system.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section and to make provision forthe disposal of discontinued lines, seconds, and other sales to beexcepted from the application of this Section.2. Members of the Division shall file with the Divisional Com-mittee a schedule of prices and terms of sale for the products of theDivision, within thirty (30) days after the effective date of thisCode. Such price lists may be revised only upon five (5) daysnotice by registered mail to the Divisional Committee. The Divi-sional Committee shall immediately send copies of all price listsfiled to all members of the Division.Members of the Division shall not sell their products at lowerprices or on more liberal terms than set forth in their own price list.When any member of the Division revises his price list, any othermember of the Division may revise his price list accordingly, tobecome effective on the same date as the revised price list first filed.The following may be sold without filing revised price lists there-for, but shall be reported to the Divisional Committee immediatelyafter sale: dropped lines.The Divisional Committee shall have the power to suspend theoperation of the provisions of this Section.3. The following Unfair Trade Practices are prohibited:(a) Giving, permitting to be given, or directly offering to give,anything of value for the purpose of influencing or rewarding the(422)

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423action of any employee, agent or representative of another in relationto the business of the employer of such employee, the principal of,such agent or the represented party, without the knowledge of suchemployer, principal, or party. This provision shall not be construedto prohibit free and general distribution of articles commonly usedfor advertising except so far as such articles are actually used forcommercial bribery as hereinabove defined.(b) Using or substituting any material inferior in quality to thatspecified by the purchaser of any product.(c) Maliciously inducing or attempting to induce the breach of anexisting oral or written contract between a competitor and his cus-tomer or source of supply, or interference with or obstructing the performance of any such contractual duties or services.(d) The secret payment or allowance of rebates, refunds, com-missions, credits, or unearned discounts, whether in the form ofmoney or otherwise, or the secret extension to certain purchasers ofspecial services or privileges not extended to all purchasers on liketerms and conditions.(e) The branding or marking of any product of the Division inany manner which tends to deceive or mislead purchasers, withrespect to the grade, quality, quantity, origin, size, material content, or preparation of such product.(f) Selling on more liberal terms than 5/10 or 4/10/60 Ex.(g) The making or causing or knowingly permitting to be made orpublished any false, materially inaccurate, or deceptive statement byway of advertisement or otherwise, whether concerning the grade,quality, quantity, substance, character, nature, origin, size, finish, orpreparation of any product of the Division, or the credit terms,values, policies, or services of any member of the Division, or other-wise, having the tendency or capacity to mislead or deceive customersor prospective customers.(h) Making sales upon any other terms than expressly set forthin the invoice pertaining to such sales.

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MOTOR ROBE DIVISIONDivision No. 7I-DEFINITIONThe term " Motor Robe Division" as used herein includes allmembers of the Industry producing motor robes exclusive of loom-finished, fringed steamer rugs.II-TRADE PRACTICES1. All deliveries shall be F.O.B. factory or within the Metropoli-tan District thereof.2. The following Unfair Trade Practices are prohibited:(a) Giving, permitting to be given, or directly offering to give,anything of value for the purpose of influencing or rewarding theaction of any employee, agent or representative of another in rela-tion to the business of the employer of such employee, the principalof such agent or the represented party, without the knowledge ofsuch employer, principal, or party. This provision shall not beconstrued to prohibit free and general distribution of articles conmonly used for advertising except so far as such articles are actuallyused for coiumercial bribery as hereinabove defined.(b) The secret payment or allowance of rebates, refunds, com-missions, credits, or unearned discounts, whether in the form ofmoney or otherwise, or the secret extension to certain purchasers ofspecial services or privileges not extended to all purchasers on liketerms and conditions.(c) Selling on more liberal terms than 2% 10 days E.O.M. exceptthat for shipments made to points west of the Rocky Mountainsterms shall be 2% 10 days E.O.M. or 2% 10 days after receipt ofgoods. Goods invoiced on and after the twenty-fifth of any monthmay be dated as of the first day of the following month. No antic-ipation shall be allowed at a greater rate than 6% per annum.(d) Making guarantees against price fluctuations.(424)0