UNIVERSITY OF FLOR IDA 

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3 1262 08482 9802 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

INTERLINING IMPORTING 

INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

REGISTRY No. 299-32 

The Code for the Interlining Importing 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 ,ndustry 

T WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON I ltll 

For sale bv the Suoerintendent of Documents, Washington, D. C. - - - - - - - - Price 5 cents 

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CODE OF FAIR COMPETITION OF THE INTERLINING 

IMPORTERS 

(PURSUANT TO THE PROVISIONS OF TITLE I OF THE N.I.R.A.) 

The importers of interlining recognize the existence of an emer- gency affecting the welfare of both employers and employees in the 

importation and domestic distribution of interlining. The emergency demands that unfair competitive practices be eliminated, that 

unemployment be reduced and relieved and that standar l of employment be improved. It i the declared purpose of the importers 

of interlining an l adherents to this code to bring a far a may be 

practicable the rates of wage pail in the interlining importing trade 

to such levels as are necessary for the creation and maintenance of 

the highest practicable standard of living; to restore the income of 

enterprises within the trade to levels which will make po ible the 

payment of uch "ages and a void further depletion and d truction 

of capital assets; and from time to time to revise the rates of wages 

in such manner as will currently reflect their equitable adjustment 

to variation in the cost of living. 

The interlining importing trade is fully cognizant of the fact 

that under clause ( e) of Section 3 of the N.I.R.A., the President, 

on his own motion or on complaint of producer or distributors of 

competing domestic products, is authorized and empowered to direct 

an investigation by the U.S. Tariff Commission of the domestic 

effect of competition by imported products with domestic products, 

to determine whether the imported articles" render or tend to render 

ineffective any code or agreement"; that if he so finds, he is directed, 

after investigation and notice and hearing of importers, to permit 

such imported articles to enter only upon such terms and conditions 

and subject to such fees and to such limitation in total quantity 

that may be imported in the course of any specified period, a he 

may find necessary; that in order to enforce a Presidential limitation 

on imports, the President is authorized by the Act to forbid their 

importation without a Treasury license, and the Secretary of the 

Treasury is directe l to admit only those articles that conform to the 

President's directions regarding terms, conditions, fees, limitation on 

quantities that n1-ay be imported, and licen ing; that the Pr ident' 

decision as to the fact is declared conclu ive; and that th Pre ident's conditions or limitations with respect to imported arti le hall 

continue until the President foul and inform the Secretary of the 

Trea ury that the facts which l d to their impo ition no lon<Yer e:si t. 

It i therefor the further purpo e of thi ocl to effect co p rati n 

with the Pre id nt in regar l to the inter . t of importer of interlinin<Y, in conn ction with any omplaint, inve baation, hearing or 

order, under the aforemention c1 ection ancl ubdi i ion of th 

N.I.R.A. 

684-33 (1) 
2 

To effectuate the policy of Title I of the N.I.R.A., the following 

provisions are established as a code of fair competition for interlining 

importing trade: 

I-DEFINITION 

1. The term " interlining" as u eel herein is defined a folJows: 

Canvas padding com po eel of jut ; cotton and jute; linen, or linen 

and jute, which is imported and sold entirely to (a) clothing manufacturers who themselves manufacture the goods into coat fronts, 

or (b) to coat-front manufacturer , who cut the canvas, manufacture 

it into coat fronts, and ell it to the clothing manufacturer . 

2. The term employees as u ·eel herein hall include all per ons 

employed in the selling and shipping department or a office help. 

3. The term e:ff ecti ve date a u. eel herein i define l to mean 

Augu t 31, 1933, or if thi code shall not have been approved by the 

Pre ident two weeks prior thereto th n the econd fonday followino- uch approval. 

4. The t rm per on shall include natural person , partner hip , 

and corporations. 

II-Pnon ION, P R, t:AXT T ..... E . 7A 

Employer in the interlinina imp rtino· tra le hall comr 1~ with 

the following requir m nt. of e tion 7a of Title I of the .I.R.A. 

1. That mploye . · hall haY th right to organize an l bargain 

c llectively through repre ·entatiY of their own hoo~ing an l hall 

be free from interference. re traint. or c ercion of employer of 

labor or their agent , in the l sio-nation of uch r I resentative or 

in elf-organization or in other con ert cl actfrjties for th puq o. e 

of ollective baro·aining or other mutual aid or I rote tim . 

2. That no employ an l no ne . eeking employm nt hall be required a a condition of employment to join any company union or 

to refrain from joining, oro-anizing1 or a:-- ·i ·tino· a labor union of his 

own choo ing; and 

3. That employer . hall c 1111 ly with maximum hour of lab r 

minimum rate of p y. and other condition of ern l loyment. 

III-1\IrNnr :\I R.\.TEs OF PAY 

On anLl after the ff cti, e dat , and ·on inning clurina th p riod 

of the emergen ·y as lefined in the .LR.A., the minimum wage 

that hall b paid by employers in the interlining importing trade 

to any of their employees shall be at the rate per week for forty 

l,our of labor as follow : $15 a week· provided, further that compen~·ation for employment now in exce of the minimum waaes 

l1e·e.by agre l to ·hall not be reduced. 

IY- L-\.xnrul\I H01:rn, OF E::\IPLOYUE .. T 

On and after the e:ff ctive date employers in the trade shall not 

employ thrjr employe in exce~ · of 40 hour per week. 
3 

V-REPORT 

"Tith a view to keeping the Pr sident informed a to the b: ervance or nonob ervance of this code of fair competition and as to 

"·heth r the trade i · taking appro1 riate tep to effectuate th declared policy of the N.I.R.A., each person engaO' d in the interlining 

importing trade shall furnish duly certified report to the Executi,·e ecretary of the Association hereinafter named jn u h ub- ·,tanc and in such form a may from time to time be requir l: 

1. Returns every four weeks showing actual hours worked by the 

yariou occupational group of employees, and the n1inimum weekly 

rates of pay. 

2. vVeekly reports of imports received, sales, sales contract. for 

future delivery and a record of hipments made against such contracts. Provided, however, that all reports and information furni hed by members or obtained from their contracts, books, or records, 

shall not be divulged to any other member, nor to any other person, 

except as it may be necessary to divulge such information to enforce 

the observance of the provi ions of this code or with a bona fide purpose to enforce such observance. 

The Interlining ~1.anufacturer Association, Inc., i constituted the 

agency to collect and receive such reports. 

VI-PLA NING AND FAIR PRACTICE AGENCY 

To further effectuate the policy of the N.I.R.A., the Board of 

Directors of the Association is set up to coopernt ·, with the Pre ident 

as a planning and fair-practice agency for the interlining importing trade. 

The Board of Directors may from time to time present to the Administrator recommendations based on conditions in the interlining 

importing trade as they may develop from time to time, which will 

tend to effectuate the operation of the provisions of this code and 

the policy of the Act, and more particularly along the following 

lines: 

A. Reco1runendations as to the requirem.ent by the Admini trator 

of such further reports from the persons engaged in the trade of stati tical information and the keeping of uniform account , a may be 

required to secure the proper observance of the code and promote the 

proper balancing of production and consumption and the stabilization of the trade and employment. 

B. Recomm.endations for the setting up of a service bureau for 

a counting, r porting, coll tion, and di emination of credit information, and other purposes and to meet the con lition of th emergency and the requir ments of this co<le. 

C. Recommendations for the making by the Administrator of 

requirements as to methods and conditions of tradinO' the naming 

and reporting of prices which may be appropriat to avoid li crimination to promote th tabilization of th trade, and to pr v nt and 

eliminate unfair and destructive competitive prices and practic . D. Recommendations for regulating the dispo al of listre merchandise in a way to s cure the protection of the owners and to promote sound and stable conditions in the trade. 
4 

E. Recommendations as to the making available to the supplier 0£ 

credit to those engaged in the trade 0£ in£orma.tion regarding terms 

and actual functioning 0£ any or all the provisions 0£ the code, the 

conditions of the trade, and regarding the operations 0£ any and all 

0£ the members 0£ the trade covered by such code, to the end that 

during the period of the emergency available credit may be adapted 

to the needs 0£ such trade considered as a whole, and to the needs 

0£. the small as well as the large units. 

F. Recommendations £or dealing with any inequalities that may 

otherwise arise to endanger the stability of the industry and 0£ 

production and employment. 

~uch recornn1endations when approved by the Administrator shall 

have the ame force and effect a any other provi ion of this cocle. 

VII-UNFAIR METHODS OF Col\IPETITIO:N" 

Violation by any interlining importer 0£ any 0£ the provisions 0£ 

this code, or of any approved rule issued thereun ler, is an unfair 

method of competition. The following are pecifically declared to 

be unfair methods 0£ competition: 

1. Selling or offering £or sale any rnerchancli e below cost. 

2. Enticing away employee 0£ competitors with the purpose and 

effect of unduly hampering or injuring or-embarrassing competitors 

in their business. 

3. Making, causing, or permitting to be made, or published, any 

false or leceptive tatements on or concerning the busine policies 

or methods 0£ competitors. . 4. Selling or offering for ale any merchandi e 0£ the trade, with 

misrepresentation calculated to deceive customers or prospective customers as to the quality, quantity, grade, substance, nature, origin, 

size, or preparation of any 0£ said merchandise. 

5. Shipping 0£ goods on consignment or memorandum, either 

directly or indirectly. 

6. Paying or allowing secret rebates, refunds, credits, or unearned 

discounts, whether in the form 0£ money or otherwise, or extending 

to certain purcha ers confidential prices pecial services, or privileges not mention cl in his original specifications. 

7. Substituting other materials or grades £or the kind ordered 

without written approval of the purchaser. 

8. Selling any product or article other than canvas at an unreasonable price for the purpose 0£ evading or defeating the terms of this 

code. 

9. Representing certain prices or terms as special when they are 

in fact regular prices and regular terms, with the tendency and capacity to mislead and deceive purchasers. 

10. Secret deviation from announced or published price lists directly or indirectly in any guise by allowance 0£ rebates, commissions, refunds, or unwarranted freight allowances. 

11. Imitation 0£ designs, names, borders, or selvedges or other 

marks 0£ identification of competitors, having the tendency or capacity to mislead or deceive purchasers or prospective purchasers. 
5 

12. Payino· or prnmi ing to pay any empl yee or agent :£ the ptlrcha er or pro pecti ve pur ha er a commi i n in the form o:£ money 

or anything o:£ vnlHc, for the purpo. e o:£ in lucing or compensating 

for the ale with or without the k:nowle lo·e o:£ the purcha er. 

VIII-TRADE TA DA.RDS PRA TICE AND TOM 

1. Each firm hall a lhere to uch term of ale a are provide l in 

it. contracts and hall enforce colle tion in accordance with it term . 

2. Each firm shall every 30 day before the 10th day o:£ the ucceeding month file with the association selling price li t of all items 

o:ff ered for sale. 

3. Term shall be net ca h U.S. :fun l with a maximum credit 

limit o:£ 90 days :from the date o:£ hipment. 

4. The makino- o:£ oral contract or o:£ incomplete and ambiguou 

written contract for the sale o:£ imported interlining provide a 

medium for unfair price liscrimination, including fraud, giving ri e 

to disputes and disturbing the stability o:£ the indu -try. Therefore, 

all contracts :for the sale o:£ interlining shall be in writing, signed by 

the customer and shall contain a definite statement o:£ pric , quantity 

and grade, terms o:£ payment, time, and place o:£ delivery, and which 

contracting party pays the :freight and/or cartage, and all other 

elements necessary :for a complete contract. They shall also provide 

:for arbitration o:£ all disputes ari ing out o:£ said contracts either 

by the arbitration board o:£ the textile industry or by the American 

Arbitration Association. Such contracts shall also contain a provision reciting that the prices therein contained are ubject to change 

:from time to time, to include any increases in dutie which may be 

decreed by the Secretary o:£ the Treasury pursuant to Pre idential 

direction under the import provi ions o:£ the N.I.R.A. 

5. Whenever a customer shall fail to meet his obligation to any 

member o:£ the trade, dealings with him shall thereafter be on a 

basis o:£ cash on delivery, unless and until he shall state under oath, 

upon a uniform questionnaire form to be prepared by the Association :for that purpose, his true financial condition at the time o:£ making said statement, provided, however, that such :form shall not 

contain unreasonable request :for information not germane to the 

credit standing o:£ such customer. Immediately upon receipt thereof, the executive secretary shall notify the trade that such information is available and thereafter members o:£ the trade may exerci e 

their own discretion as to whether they will extend credit to such 

delinquent. 

6. No customer or prospective customer o:£ the trade hall be 

eligible for credit unless at least once during his fiscal year he shall 

submit a financial statement under oath referred to in the next preceding paragraph, on the forms specially provided therefor by the 

Association. 

7. o customer or prospective customer o:£ the trade hall be 

eligible for credit if he shall have been found guilty in a court of 

record of concealing his assets or otherwise defrauding er ditor or 

if this was the judgment of any board of arbitration in a controver y 

to which he was a party. 
G 

IX-CosT 

The A ociation shall proceed at once to provide for uniform 

methods of cost finding, and shall ascertain and establish from time 

to time, in conformity with such uniform method, the co t of various 

items dealt in by the trade, which cost when so found, established 

and filed with the A ociation, shall be the uniform cost to be 

adopted by the trade. 

The term cost shall be interpreted to include among other items, 

duty, consul fees, brokerage, cost of materials based on cu tom house 

appraisal at port of entry plus freight packing, cartage, insurance, 

taxes, interest, selling, and a lministration expense, credit losses, plus 

5% of the amount of such co t to cover unfore een exigencie or 

emergencies in connection with bu ines operations. 

X-REVISION AND SUPERVISION 

Such of the provisions of thi co le a are not required to be included therein by the N.I.R.A. may, with the approval of the Pre ident be modified or eliminated if it appear that the public nee ls are 

being served thereby and as changes in circumstance or experience 

may indicate. They shall remain in eff ct unle and until so 

modified or eliminated or until the expiration of the Act. 

It is contemplated that fr m time t time uppl mentar. provisions to thi code or additional od will be ubmitted for the 

approval of the Pre ident to preYent unfair comp tition in I rice 

and other unfair practice , and to ffectuat the purpo e and policie 

of the N.I.R.A. and which hall not confli t with the provi ions 

thereof. 

The Board of Directors i hereby empowered to investio·ate as to 

the functioning and ob ervance of any of the provision of thi code, 

at its own instance or on complaint of any per on affected to report 

the same to the Administrator; to oop rate with the Admini trator; 

to propose additions, modification , or revision of this co le; from 

time to time to require such reports from manufacturer as in its 

judgment may be necessary to advi e it adequately of the administration and enforcement or the pro, i ion of thi code; to propose a 

marketing code with respect to collection and interchange of credit 

information; cooperative adininistration of in olvent debtor ' e tates 

and other aspects of marketing; to propose agreement or affiliation 

with allied trades and indu trie and with cu tom r for mutual 

betterment and advancement; and, generally, to perform such other 

acts as may be reasonably neces ary and proper to put the ·e re. olutions into effect and to accomplish the objects and purpo es of the 

N.I.R.A. 

XI-VIOLATIONS 

In the event that such committee hall find the rule of fair competition, or any provisions of this code have been violated, the violation 

shall be reported to the board of directors for such action as they 

shall deem proper in accordance with this code, including in appropriate cases report to the U.S. Attorney, the Federal Trade Commission, or the instituting of license proceedings in accordance with law. 
7 

Such committee i al o charged with the du~y of kee1 ino- it elf ancl 

the trade informed of any complaint that ·hall b mad t the 

Pr ident with re pe t to any alleg <l competition of interlining imports with any dome tic products, and to take all tep which they 

shall deem necessary and proper to furth r the intere t of the interlining importing indu try. 

XII-PAR'I'ICIPATION 

Participation in thi code or in any ubsequent revi ion of or addition to thi code shall be extended to any per on, par+ner hip, or 

corporation in the interlining importing trade which shall accept it 

share of the cost and responsibility as well a the benefit of participation by becoming a member of the Interlining Manufac'-urer 

Association, Inc. 

XIII-ARBITRATION 

The member of th interlining importing trade endorse the principle of arbitration for the ttl ment of all disputes within the 

industry. 

XIV-GENERAL PROYISIO:N 

This code is not designed to promo~e monopolie and shall not be 

availed of for that purpose. 

The provi ion of this code hall not be so interpreted or administered as to eliminate or oppre ·mall enterpri es or to discriminate 

against them . . 

The Pre ident, in accordance with the provi ions of section 1 Ob 

of the N.I.R.A., may from time to time cancel or modify any order, 

approval, licen e, rule, or reo-ulation i ued under Title I of the 

N.I.R.A. The Interlining Manufacturer A ociati n, Inc., will from time 

npon request from the Admini trator, furni h all data, information, 

and tati tic as it may have available bearino- upon the question of 

price increa es, if any, in the industry.