UNIVERSITY OF FLORIDA 

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NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

LINEN INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

REGISTRY No. 246-01 

The Code for the Linen Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. • - - - - - Price 5 cents 
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CODE OF FAIR COMPETITION FOR THE LINEN 

ASSOCIATION 

1. INTRODUCTIO 

To effectuate the policy of Title I of the ATIONAL INDUSTRIAL RECOVERY ACT, during the period of the emergency 

by reducing and relieving unemployment, improving the standards 

of labor, thus increasing the purcha ing power, eliminating unfair 

competitive practices destructive to the interest of the employer 

and employees; relieving the disastrous effects of overproduction 

and otherwise rehabilitating the linen industry, the following provisions are established as a code of fair competition. 

2. DEFINITIO s 

The term LINEN ASSOCIATION as used herein is defined to 

mean manufacturers, converters, and importers engaged principally 

in the wholesale distribution of goods wholly or chief value linen. 

A. The term EMPLOYEES as u ed herein shall include all persons employed in the conduct of such operations. 

B. The term EFFECTIVE DATE as used herein shall be the 

first Monday following the approval of this code by the President. 

C. The term PERSONS as used herein shall include natural per- sons, partnerships, associations, and/or corporations. 

D. Peasant type or printed linens are regarded in the trade as 

staple linens. · 

E. Fancy linens, as distinguished from staple linens, are linens 

that have been decorated, embroidered, or lace trimmed. 

F. Hemstitched linens, damasks, or plain sheets, towels, and pillowcases are classified as staple linens. 

3. MEMBERSHIP 

Any individual, partnership, company, corporation, or manufacturer's representative or a~ent engaged in the im1Jortation. conversion, or wholesale di tribution of linens shall be eligible for 

membership in the LINEN ASSOCIATIO . The LINEN ASSOCIATION truly repre ents the industry for which it acts. 

4. vV AGES, HoURs, ETC. 

Effective immediately the minimum wage which shall be paid by 

employers in the LINEN ASSOCIATION to any of their employees, factory or mechanical workers, or artisan , shall be $13.00 

per week and forty hours per week shall be the maximum workina 

hours, with the exception of a six-w ek p riod of over ime durino 

which a maximum of 44 hour per we k ·hall prevail at 11/3 pay 

for the overtime, with the understanding that the maximum hours 

8671-33 (1) 
•). 

.. per week for the year's average ball not exceed 40 hours. No 

labor shall be engaged under the age of sixteen years. Minimum 

wage for accounting, clerical, office, service, or sales employeesexcepting outside alesmen- hall be fifteen dollars per week and 

the maximum working hours shall be forty hours per week. 

5. RIGHT TO ORGANIZE 

Employees or persons ubject to the jurisdiction of this code shall 

have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from interference, 

restraint, or coercion of employer of labor or their agent , in the 

designation of such repre entatives or in elf-protection or any other 

concerted activities for the purpose of collective bargaining or other 

mutual aid or protection. o employee or person subject to the 

jurisdiction of this code and no one eeking employment from such 

persons hall be required a a condition of employment to join any 

company union or to refrain from joining, organizing, or as isting a 

labor organization of hi own choo ing. 

6. TERMS 

The terms of the LINEN SO IATION hall not be in excess 

of 3 percent for payment in ten day with the option of E.0.M. 

or two percent for longer lating n tin exce of 70 days from date 

of invoice. Shipments of th 25th of the month and after shall 

be allowed as of the 1st of th month. No further dating allowed. 

7. DELIYERY OF ~1ER HA_ -m E 

Delivery of merchandi e i F.O.B. point of origin or main office, 

and where the hipping point is New York ity, the five boroughs 

only. For stock-carryina branch offices east of the Mississippi River 

a minimun1 of 21⁄2% mu -t be added to the main-office price; west 

of the Mississippi a minjmum of 5% mu t be added to the main-office 

price. Branch offices are allowed to make free local city delivery 

after above minimums have been added. 

8. REBATE 

No rebate shall be given in any form whatever. This also pro- hibits such items as absorption of transportation costs, spe~ial discounts, commissions, advertising allowances, or free salable samples 

with the exception that in fancy linens a maximum discount of ten 

percent may be allowed for import orders where the minimum time 

of delivery from date of confirmed order is sixty days. This import 

discount must not violate the provisions of paragraph 12. 

9. COMMERCIAL BRIBERY 

No gratuities of any nature shall be given to buyers and/or buying 

offices or their principals or agents nor shall any commissions or 

rewards in any form whatever be paid them directly or indirectly. 
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10. G ARANTEE AGAIN T PRI E FLUCTUATIONS 

No prices hall be guaranteed to any purchaser against a decline. 

11. MARKING AND LABELING 

A. Commencing January 1, 1934, merchandise shall be accurately 

marked. Any merchandise remaining in warehouse or in stock on 

the effective date must be either re-marked or the correct finished size 

directed to the attention of the buyer and confirmation marked accordingly. The merchandise shall be so billed. Any merchandise 

on hand or in warehouse after June 30, 1934, must be re-marked when 

withdrawn from warehouse. The marked size shall not vary from 

the finished size any more than three percent in either width and 

length in the case of fancy linens, and a variation of only one percent 

for mechanical differences in staple linens. 

B. The term "linen " or "pure linen" or ' all-linen" shall be only 

used as descriptive of an article made of flax whose linen content 

is above 95 percent. Commencing January 1, 1934, no finished fabric 

containing less than 5% linen shall be labelled with the word 

"Linen" in any form. Linens containing between 5% and 95% 

linen shall be labelled with the exact linen percentage content, such 

figures to be printed in the same size type as the word "linen." 

No name shall be used on a nonlinen fabric or to describe a nonlinen fabric which is so similar, in sound or appearance, to the word 

linen as to mislead a purchaser into believing it to be linen. 

"\iVhen linen fibres are destroyed by making them into visco e 

or any solution it is no longer regarded as linen since the characteristic properties of linen fibre are lost. A cotton or a mercerized 

fabric which is treated to a finish by impregnating or in any manner 

washing or coating with a solution, alleged to be a flax solution, 

may not be identified with the term "linen" in any manner. 

12. CosT OF MERCHANDISE 

A. No merchandise shall be sold below cost except for provisions 

as outlined in Paragraph Thirteen. 

B. The cost of domestic manufactured merchandise shall be the 

cost of labor plus material ( excluding designing) plus 20 percent 

for overhead. In the case of merchandise manufactured in Puerto 

Rico or Philippine Islands, the cost of transporting the material as 

well as the finished goods back to market shall be included in the 

cost of the merchandise. 

C. Im ported merchandise shall not be sold for less than the a tual 

cost abroad plus six percent for ocean freight, insurance entry fees, 

trucking, and other miscellaneou expen es plu the actual co t o:f 

duty, plus taxes. To the above total shall be added fifteen perc nt 

:for overhead. This calculation applie to taple lin n under Paragraphs 1,009 A B 1 1010 1011 1013 1014 of the Tariff ct with 

the exception o:f merchan li e mad to ord r for institutions which 

is imported for re ale throuo-h a ii tribut r. 

D. Imported :fancy lin n hall b calculat l a abov x pt that 

the six percent shall cover foreio·n buying charo- an l an additional 
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fonr percent shall be added for shipping expenses. To this total 

shall be added twenty percent for overhead, this calculation being 

considered the cost of fancy linens. 

13. SALES BELow CosT 

Merchandise may be sold below cost in the followino- in tances: 

Should a drop in the market occur, the cost of such merchandise, as 

defined in Paragraph Twelve, may be lowered in proportion to such 

drop at the discretion of the Central Committee. Should any article 

or articles be of a kind not readily salable or imperfect, then such 

goods may be sold below cost, if necessary, and the report made to 

the President of the Linen Association who will refer the matter 

to the group in the division affected. If however this practice in 

the opinion of the group committee is abused, it will be considered 

a breach of the code. 

14. EXCHANGE EQUALIZATION 

For the purpose of computing costs when purcha ing in foreign 

currency the rate of exchange prevailing on date of exportation from 

the foreign port shall be the rate upon which the cost abroad shall 

be determined. Should exchange have been purchased at a lower 

rate, then the importer shall, nevertheless, base hi co ts for sales 

purposes upon the rate prevailing at time the merchandise leaves 

the foreign port. Should exchange have been purchased at a higher 

rate, it shall be optional on the part of the importer to reduce the 

rate to that prevailing at the time of exportation from the foreign 

port. In the case of taking orders for future delivery on import 

good , the cost as regards the exchange shall be computed as of the 

date that such future orders are taken and confirmed. 

15. CoNSIGNMENTs 

The members of the Linen Association agree not to send merchandise to any customer on consignment, with the exception that 

merchandise with a value of fifty dollars or more per unit be excluded from this restriction. Any aoTeement to accept the return of 

n1erchandise, other than for the reason that uch merchandise is 

defective or not as represented, shall be turned over to the Investigating Committee. This Committee will decide whether or not such 

a return is a subterfuge and therefore a violation of this clau e. 

15-A. LOT SALES 

The sale of any article or articles at a price that is contingent upon 

concurrent purchases and sale of another article or other sizes of 

an article; or the selling of different articles in group or combination 

at a single or group price which does not also specify the selling price 

of each separate article contained in the group or combination of 

articles sold, is an unfair practice and constitutes a violation of this 

code. Exception: Articles which are commonly sold in set or 

ensemble form. 
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16. MANUFACTUERS REPRESENTATIVE 

For the purpose of this code a representative shall be regarded 

as one who sells goods for a foreign manufacturer, but does not carry 

stock in America. A sole agent shall be regarded as one who sells 

goods for a foreign manufacturer or has a foreign branch of his 

own, or has a sole purchasing agent of his own and carries stock 

as well. No representative of a foreign manufacturer shall land 

merchandise for the customer's convenience nor shall such representative carry stock in warehouse or otherwise, except as specified 

in this paragraph, unless he is the sole agent as heretofore defined. 

In such case, unless merchandise is sold for direct shipment from 

abroad to the customer, he shall be bound by Paragraph Twelve of 

this code. In the event that a customer shall refuse merchandise 

because of late delivery, inferiority, or for other legitimate reasons, 

the representative shall then be permitted to place the merchandise 

in warehouse for the account of the manufacturer, and/ or sell such 

merchandise to other of his customers. 

17. GROUP BUYING 

A. In order to protect American labor, the practice of sales agents 

:for foreign manufacturers selling merchandise to resident buying 

offices at foreign value or foreign value plus cost of landing with a 

small commission added, shall be considered as unfair competition 

and therefore a violation of this code. 

B. No samples can be shown at resident buying offices without a 

sales representative of the seller being in attendance. 

18. DISPUTES 

Should a dispute arise between a manufacturer and an importer 

or dealer, it is agreed that arbitration shall be resorted to. The 

National Arbitration Association shall appoint judges within the 

LINEN ASSOCIATION whose decision shall be binding. 

19. DESIGN PIRACY 

Design piracy or the intentional reproduction of another firm's 

established designs is declared an unfair trade practice and arbitration will be provided in all cases brought to the attention of the 

investigating committee of the LINEN ASSOCIATION, prior to 

the filing of complaints with the National Recovery Administration. 

20. ENFORCEMENT OF CODE 

Any infraction of this code, or of the intent of this code, shall be 

dealt with by a committee appointed by the President of the A ociation. This committee hall make a fair and impartial investigation of the charges, and if a member is found guilty, the committe 

recommendation shall be deemed binding, but in no ca e hall it 

exceed the penalties prescribed by law. Should the LINEN ASSOCIATION find it necessary to do o, application shall be made to the 

Federal Government for a licensing system. 

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