Approved Code No. 151 Registry No. 228-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

••• 

AS APPROVED ON DECEMBER 15, 1933 

BY 

PRESIDENT ROOSEVELT 

\l."E DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

S. Code 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

1

) l I / 

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Approved Code No. 151 

CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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 my approval of a Code 

of Fair Competition for the Millinery Industry, and hearings having 

been held thereon and the Administrator having rendered his report 

containing an analysis of the said code of fair competition, together 

with his recommendations and findings with respect thereto, and 

the Administrator having found that the said code of fair competition complies in all respects with the pertinent provisions of title I 

of said act and that the requirements of clauses (1) and (2) of 

sub ection (a) of section 3 of the said act have been met, 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of the 

National Industrial Recovery Act, approved June 16, 1933, and otherwise, do hereby adopt and approve the report, recommendations~ and 

findings of the Admini trator and do order that the said code of 

fair competition be and it is hereby approved, subject to the :following conditions: 

1. That the provisions of this code shall be in full force and 

effect only until May 15, 1934. Prior to that date, the code authority 

shall make recommendations to the Admin1strator in regard to the 

continuance or the amendment of any or all provisions of this code. 

2. A special board shall be appointed by the Admini trator for 

the purpose of determining after notice and hearing whether the 

scales applying to a particular area, market, or n1ember of the in256920-244- 151-33 (1) 
2 

dustry should be stayed or modified because of great and unusual 

hardship to such area, market, or member of the industry by rer..son 

of the application of such scales thereto. 

3. Provision is made in section 5 of article IV by which any 

person on whom undue hardships are imposed may be granted an 

opportunity for relief. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 

HUGH S. JOHNSON' 

Administrator. 

THE ,v HITE HousE, 

December 15, 1933. 
The PRESIDENT, 

NOVEMBER 17, 1933. 

The White House .. 

Srn: This is a report of the hearing on the Code of Fair Competition £or the Millinery Industry, conducted in Washington on 

August 1 and 2, in accordance with the provisions of the National 

Industrial Recovery Act. 

PROVISIONS OF THE CODE FOR HOURS AND WAGES 

Factory employment is limited to thirty-seven and one half hours 

per week, except that the Administrator may perimit a certain amount 

of overtime during peak periods, should conditions so require. Time 

and one half will be paid for all overtime work. The Code provides 

also that should conditions at any time warrant such a step, the 

Code Authority or the Administrator may further reduce the maximum hours. Factory operations are limited to one shift a day, 

five days a week. 

The Code provides a basic minimum of fourteen dollars for employees in establishments located in greater New York, in the territory within a hundred-mile radius of the City of Chicago and in 

the States of New Jersey, Pennsylvania, and Connecticut, and a 

basic minimum of thirteen dollars for all other parts of the country. 

Minimum wages are also specified for blockers, operators, cutters, 

and milliners. Such minimum rates vary between forty-five cents 

per hour and one dollar and ten cents per hour. It should be noted 

m particular that the Code establishes machinery for readjustment 

should the wage rates specified prove inequitable. 

The minimum age of employees is fixed at sixteen years, homework is abolished, and manufacturing operations under unsanitary 

conditions are 'prohibited. 

EcoNol\nc EFFECT OF THE CooE 

The thirty- even-and-one-half-hour normal week for factory employees with the additional pay for overtime should tend to level 

employment peaks in this industry and increase the number of 

workers. Inasmuch as style is such an important element in this 

industry, seasonal peaks have been very pronounced. It is hoped, 

however, that the hour provisions of this Code, along with the control of style piracy, will do much to even employment throughout 

the year. In the spring of 1929 (peak season) there were 37,760 

workers engaged in this industry. By the spring of 1932 this number had declined to 29,790, and by the spring of 1933 to 27,440. 

These figures indicate an unemployment of 10,320 workers at the 

peak of the season. Other things remaining equal, the thirty-sevenand-one-half-hour week will require about 28 percent more workers. 

(8) 
4 

Approximately 75 percent of those now unemployed will be reem.-

ployed as a result of the provisions of this Code. A thirty-five-hour 

week would be required to absorb all unemployment. Because of 

the increased cost involved, however, and the difficulties of further 

readjustment, it was thought better to allow thirty-seven and one 

half hours per week at the present time and in the future to reduce 

the hours still further should conditions so require and so permit. 

There is no information available to allow an estimate of the 

increase in the pay roll attributable to the wage provisions of this 

Code. It is evident, however, that the increa e will not be great 

since there are not many unskilled workers and since a good part of 

the skilled workers whose minimum wages are set by this Code, 

customarily, in New York at least, receive higher than the wages 

specified. Such increase in pay rolls as these provisions will bring 

about will effect primarily the manufacturing centers outside of 

New York. A considerably larger increase in pay roll will result 

from reduction of the work week. The reduction of hours alone will 

add about 28 percent to the present pay roll. 

The percentage ratio to the value of product is 22.5. An increase 

in the pay roll o:£ 28 percent would, therefore, raise the :factory 

selling price 6.3 percent. Consequently, in this industry at least, 

purchasing power will be increased much more rapidly and to a 

much greater extent than prices. 

FINDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant groups impose no inequitable restrictions on 

admission to membership therein and, collectively, are truly representative of the Millinery Industry; and that 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises, and will not operate to discriminate against them, and will tend to effectuate the 

policy of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be immediately 

adopted. 

Respectfully, 

HUGH s. JOHNSON' 

Admini,strator. 
CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

ARTICLE I-PURPOSE 

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 Millinery Industry, and shall be the 

standard of fair competition for this Industry, and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term " industry " as used herein includes the manufacture 

of millinery as hereinafter defined, and such related branches or subdivisions as may from time to time be included by the President 

under the provisions of this Code. 

2. The term " millinery " as used herein shall include all ladies' 

and misses' headwear, whether trimmed or untrimmed, except that 

it shall not include so-called "harvest hats." 

3. The term "employee" as used herein includes anyone engaged 

in the industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such 

compensation. 

4. The term "employer" as used herein shall include every individual, partnership, association, trust, corporation, or other form 

of enterprise engaged as employer in the manufacture of millinery, 

as hereinabove defined, and shall include all employers who are 

engaged in any other industry or in general retail business to the 

extent that they manufacture millinery as part of their business. 

5. The term "member of the, industry" includes anyone engaged 

in the industry either as an employer or on his own behalf. 

6. The terms "Pre ident ", "Act", and "Administrator", as used 

herein shall mean, respectively, the President of the United States, 

Title I of the National Industrial Recovery Act, and the Administrator of said Act. 

ARTICLE III-HoDRS OF LABOR 

1. Except as hereinafter provided, no employee shall be permitted 

to work in excess of thirty-seven and one half (371⁄2) hours in any 

one (1) week nor more than seven and one half (71⁄2) hours in any 

twenty-four (24) hour period. 

2. Office employees, members of shipping and receiving crews, 

engineers, and firemen shall not be permitted to work in excess of 

forty-five ( 45) hour · in any one week. 

(5) 
6 

3. Except as hereinafter provided, no overtime shall be permitted, except that during a period of not more than six (6) weeks in 

any one ( 1) sea.son, overtime may be permitted in any market upon 

the recommendation of the Code Authority and the approval of the 

Administrator, provided that time and one half the normal rate of 

wages shall be paid for such overtime work as the Administrator 

may perm.it. 

4. There shall be periodical investigations by the Code Authority 

for the purpose of determining the amount of unemployment existing in each craft, and should the Code Authority find it beneficial 

for the best interests of the industry to temporarily reduce the number of hours in any specific craft, this Code may be modified to 

reduce the hours from thirty-seven and one half (371⁄2 ) to thirty-five 

(35) or less hours per week in that craft with the approval of the 

Administrator after such notice and hearing as he shall prescribe. 

5. The provisions of this Article shall not apply to persons employed in executive or supervisory capacities, or to persons employed 

us designers, provided such persons receive not less than thirty 

dollars ($30.00) per week. 

6. The provisions of this Article shall not apply to outside salesmen, or to watchmen, or to employees engaged in emergency maintenance or emergency repair work. 

7. The provisions of this Artcle shall apply to any and all persons 

who engage in any of the operations usually per£ or med by the classes 

of employees set forth in Article IV, Section 3, of this Code, or in 

any other operations required in the manufacture of millinery, even 

though such person may be a member of a partnership or association, 

or an officer, stockholder, or director of the corporation engaged in 

said business; the provisions of this Article shall not apply, however, 

to an individual owner of an unincorporated business engaged in the 

manufacture of millinery. 

8. Subject to review by the Administrator, the Code Authority 

shall issue apprentice regulations providing for apprentices' wages, 

length of apprenticeship and the percentage of apprentices in each 

particular craft. 

9. Subject to review by the Administrator, the Code Authority may 

designate the hour before which work shall not begin and the hour 

after which work shall not continue, and shall determine in which 

localities such regulations shall apply. 

10. No member of the industry shall knowingly engage any employee for any time which, when totaled with that already performed with another member, or members, of the industry, exceeds 

the maximum permitted herein. 

11. No employee shall be permitted to work in excess of five (5) 

days in any seven (7) day period. 

ARTICLE IV-WAGES 

1. For the purposes of this Code the United States shall be 

divided into four ( 4) areas, as follows: 

(a) Area "A" hall include Greater New York and the territory 

within a radius of fifty ( 50) miles from Columbus Circle, except that 

it shall not include any portion of the State of Connecticut. 
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(b) Area ' B ' hall include the city of Chicago and the territory 

within a radiu of one hundred (100) mil s of the City Hall of 

Chicago, and shall al o include the States of Pennsylvania and 

onnecticut and such portions of the State of New J crsey as are 

not included in Area 'A". 

( c) Area ' C " shall include the States of Missouri, Kansas, and 

Ohio. 

( d) Area " D " shall include all other portions of Continental 

United States not included in Areas "A", "B ", and "C" as defined 

above. 

2. No employee not provided for by the wage provisions enun1erated in Section 3 of this Article shall be paid at less than the rate of 

fourteen dollars ($14.00) per week of the maximum number of hours 

permitted by this Code for such employee when employed in reas 

"A" and " B " as defined in this Article, nor less than the rate of 

thirteen dollars ($13.00) per week of the maximum number of hours 

permitted by this Code for such employee when employed in Areas 

t, C " and " D " as defined in this Article. 

3. On and after the effective date, employees engaged in the cra-ft;:3 

hereinafter set forth shall be paid the following standard rates per 

hour, and for the purpose of establishing these standard rates for the 

various crafts, seventy-five percent (75%) of the total workers 

engaged in each craft must receive not less than the amount set forth 

in the following schedule; but in no case shall any such employee be 

paid less than at the minimum wage rate provided in Section 2 of this 

Article: 

Blockers. _____________________________________________ _ Operators _____________________________________________ _ 

Milliners CuttPrs ----------------------------------------------- ___________________________ _______ ____ ___ _____ _ 

Area A 

$1. rn 

1.00 

1.00 

. 66 

Area B 1-A-rea_ o_, __ A_r_ea_D_ 

$0:~ I: 

. 75 

.471⁄2 

$0. 0 

.671⁄2 . 671⁄2 

.45 

$0. 70 

.60 

. 60 

.46 

4. The Code Authority shall, with the appr-oval of the Administrator, issue in tructions to the members of the industry regarding 

the cla ·sification of employees. 

5. In the eyent that Section 3 of this Article imposes an undue 

hard hip on any employer, such employer may petition through the 

trade association of -which he may be a member, or directly, to the 

Administrator for relief. The Administrator, upon receipt of such 

petition, shall conduct hearings thereon, and in the event that the 

petitioner establish a case of undue hardship, the Administrator may 

make such modifications of this Code as may be neces ary. 

6. No employee hall be paid at les than the rates of pay set forth 

in this Article, regardless of whether uch employee is compensated 

on a time-rate, pi ce-rate, or other ba is of omp n ation. 

7. The weekly compen ation for emplo ment now in x e of the 

minimum wages herein provided hall not b r du ·e l n twithstanding that the hour of work in an such empl ym nt may b hereby 

reduced, and piece rates hall be o adj u +- d that urning at the 

shorter hours provided in thi ode hall b at lea t quivalent to 
8 

those obtaining under the longer hours heretofore prevailing, provided that this clause shall not cause an advance of any wage rate 

of more than twenty-five (25%) percent over the wage rate as of 

July 1, 1933. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under sixteen (16) years of age shall be employed in 

the industry. In any State an employer shall be deemed to have 

complied with this provision if he shall have on file a certificate or 

perm.it 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 collectively 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, 

minimum rates o:f pay, and other conditions of employment, approved 

or prescribed by the President. 

5. vVithin each state, this Code shall not supersede 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 occupations performed by employees so as to defeat the purposes of the Act 

or of this Code, nor shall they use any subterfuge to frustrate the 

spirit and intent of this Code. 

7. Each employer shall post in a conspicuous place copies of 

Articles III, IV, and V of this Code. 

8. No member of the industry shall permit work to be done in any 

homes or tenement houses, nor 111 any basement, unsanitary building, 

building unsafe on account of fire risks, or otherwise dangerou,s .or 

detrimental to health. 

9. Each employer shall file with the Code Authority proof satisfactory to said Authority of compliance with all labor laws and 

regulations, health and sanitation laws and regulations, fire laws and 

regulations, and other similar laws and regulations relating to the 

operation of manufacturing establi,shments; provided, however, that 

the determination by the Code Authority as to whether the proof 

submitted to it is satisfactory as aforesaid shall be subject to review 

by the Administrator. 

ARTICLE VI-ADMINISTRATION 

1. A Code Authority is hereby constituted to cooperate with the 

Administrator in the administration of this Code. 

2. The Code Authority shall consist of eighteen (18) member~ 

or such other number as may be approved from time to time by the 
9 

Administrator, and shall be selected subj ect to the approval of the 

Admini trator, from such group and in such numbers as hereinafter 

set forth: 

(a) Two (2) members shall be appointed by the Midwestern 

Millinery .A,ssociation, Inc. 

(b) One (1) member shall be appointed by the Associated Millinery Industries of St. Louis (:~fo.), Inc. 

( c) One ( 1) member shall be appointed by the New England 

Millinery l\fanufacturers and Jobbers Association. (d) Four (4) members shall be appointed by the \Vomen's Headwear Group, Inc. 

(e) Four (4) members shall be appointed jointly by the Eastern 

Millinery Association, Inc., and the National Association of Ladies' 

Hatters, Inc. 

(f) One (1) member shall be appointed by the Pacific Coast 

Millinery Association. 

(g) One (1) member shall be appointed by the Philadelphia 

Millinery Manufacturers Association. 

(h) One (1) member shall be appointed by the Millinery Manufacturers of Atlanta, Georgia. 

(i) One (1) member shall be appointed by the Cleveland Hat 

Manufacturers Group. 

(j) Two (2) members representing organizations of labor shall 

be appointed by the Administrator on the nomination of the Labor 

Advisory Board of the National Recovery Administration. 

(k) One (1) member may, in the discretion of the Administrator, 

be appointed or selected by such other group or interest as the 

Administrator may designate. 

(1) In addition to the foregoing members, the Administrator may 

appoint not more than three (3) members, with or without vote, as 

he shall determine. Such members and the Administrator shall be 

given notice of and may participate in all meetings of the Code 

Authority. 

3. Each of the foregoing associations shall file with the Administrator the names of such members as it shall appoint to the Code 

Authority and shall inform the Administrator immediately of any 

new appointment which it may at any time make. 

4. Each trade or industrial a sociation directly or indirectly participating in the selection or activities of the Code Authority shall: 

(1) Impose no inequitable restrictions 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 information as to member hip, organization, 

and activities as the dministrator may deem neces ary to effectuate 

the purposes of the Act. 

5. In order that the ode Authority shall at all times be truly 

representatiYe of the indn try and in other respects comply with 

the provi ions of the Act, the Administrator may proYide such hearings a he may deem proper, and may require an appropriate modification in the method of ·election of the ode uthority. 

6. .... T othing contained in thi ode shall constitute the memb rs of 

the Code Authority partner for an purpo e. or shall any member of the ode Authority be liable in any manner to any ne for 

any act of any other member, officer, agent, or employee of the ode 
10 

Authority. Nor shall any member of the Code Authority 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. 

7. The Code Authority shall have the following duties and powers 

to the extent permitted by this Act, subject to the right of the Administrator, on review, to disapprove or modify any action taken 

by the Code Authority. 

(a) To select officers and agents and to assign to them such duties 

as it may consider advisable, to provide rules for its procedure and 

continuance as the administrative agency of this Code, in accordance 

with the provisions of the Act, and to submit to the Administrator 

true copies of its bylaws and regulations and any amendments when 

made thereto, and minutes of meetings, together with such other 

information as to its activities as the Administrator may deem necessary to effect the purposes of the Act. 

(b) To obtain reports through a confidential agent from membern 

of the industry, not more often than semimonthly, with respect 

to wages and hours of labor, conditions of employment, number of 

employees, and other matters pertaining to the administration and 

enforcement of this Code in such form and at such times as the Code 

Authority with the approval of the Administrator may require, and 

to submit such reports or parts thereof to the Administrator as he 

may require in order that the President may be kept informed as to 

the observances of this Code. All reports received by such agency 

shall be kept secret and confidential except that they shall be available to the Administrator. Such agency, after analyzing such 

reports, may disclose without individual identification, only general 

findings based thereon to the Code Authority and to any trade association approved by the Code Authority for distribution to persons 

entitled thereto. 

( c) To recommend provisions for uniform cost and/or accounting 

systems for each Division of the industry which, upon approval by 

the Administrator and after such notice and hearing as he shall 

prescribe shall become a part of this Code. Any member of the 

industry shall have the privilege of continuing any cost and/or 

accounting system now in use or of instituting a new cost and/or 

accounting system suitable and adapted to his particular needs, provided that the selling price arrived at by the use of any such system 

shall not be less than the cost of that particular article which would 

be arrived at by the use of the uniform cost system recommended 

by the Code Authority, and approved by the President. 

( d) To prepare and recommend a uniform sales contract or order 

blank for the use of persons to whom this Code is applicable. 

( e) To initiate, consider, and recommend to the Administrator 

proposals for modifications or amendments to this Code. Upon the 

approval of the President, after such hearing as he may prescribe, 

such proposals shall be incorporated into this Code and have the 

same force and effect as if originally made a part hereof. 

(f) To undertake an immediate and complete investigation, in 

cooperation with other Code Authorities in related industries, of 

style piracy and to recommend to the Administrator, as promptly as 

possible, appropriate means for the regulation and control of style 
11 

piracy, which recommendations, upon the approval of the Administrator after such notice and hearing as he shall prescribe, shall 

become effective provisions of this Code. 

(g) To coordinate the Administration of this Code with such 

other codes, if any, as may be related to any division or subdivision 

of this industry, with a view to promoting joint and harmonious 

action on matters of common interest, and in particular, but without 

limitation, to make recommendations to the Adininistrator on question of overlapping jurisdictions. 

(h) To employ such trade associations and other agencies as it 

deem.s proper, to assist it in carrying out any of its activities, provided that such trade associations and other agencies comply with 

the provisions of this Code, and to pay the expenses incident thereto. 

Nothing herein shall in any way relieve the Code Authority of any 

of its responsibilities under this Code. 

8. Any person affected by an action taken by the Code Authority 

shall have the right to appeal to the Administrator. 

9. 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 necessary for the purposes recited in Section 3 (a) of the Act. 

10. The Administration of thj~ Code, so far as it affects such 

establishments operating under the Retail Code as are commonly 

known as department stores or pecialty stores, whose millinery departments are but one of numerous department-> of such establi hments, and the volume of business of whose millinery departments 

constitutes not more than ten percent (10%) of the volume of business of the entire establi hment shall be ve ted in the Retail Code 

Authority. Said Retail Code Authority shall be re ponsible for 

the Administration of this Code as herein provided to the Ad..'Tiinistrator in charge of the Code of Fair Competition for the Millinery 

Industry. Nothing herein contained shall be construed a.c:· relieving 

the millinery department of any department or . pecialty store from 

the provisions of this Code. 

ARTICLE VII-N .R.A. LABEL 

1. All millinery manufactured subject to the provisions of this 

Code shall bear an IRA label or an authorized substitute therefor 

to symbolize to purchasers of said millinery the conditions und r 

which said millinery has been manufactur d. 

2. Under the powers ve ted in the Adm.ini trator by ExecutiYe 

Order of October 14, 1933, and under grant of the neces ary authority 

by him, the Code Authority shall have the exclu ive right in this 

industry to issue and furni h said labels to the members thereof. 

3. Each label shall bear a registration number especially a sign d 

to each member of the indu try by the Code Authority, and shall 

remain attached to all such millinery wh n old to the retail distributor. 

4. Any and all memb rs f th indu.try ma, r apply t the Code 

..f\.uthority for a permit t use such .rTR... label, which permit to u e 

the label shall be aranted to th m, but onl if and o long as they 

comply with this Code. 
12 

5. Subject to the approval of the Administrator, the Code Authority shall establish rules and regulations and appropriate machinery for the issuance of labels and the inspection, examination 

and supervision of the practices of members of the industry using 

such labels for the purposes of ascertaining the right of such members of the industry to the continued use of said labels; of protecting 

purchasers in relying on said labels; and of insuring to each individual member of the industry that the symbolism of said label will 

be ma,intained by virtue of compliance with the provisions of th.is 

Code by all other members of the industry using said label. 

6. The charge made for such labels by the Code Authority shall 

at all times be subject to supervision and orders of the Administrator and shall be not more than an amount necessary to cover the 

actual reasonable cost thereof, including actual printing, distribu- tion, administration, and supervision of the use thereof as hereinabove. set forth. 

ARTICLE VIII-TRADE PRACTICES 

1. Inac<nl!l'ate Advertising.-No member of the industry shall publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, 

nor shall any member, in any way, misrepresent any goods (including but without limitation its use, trade mark, o-rade, quality, quantity, origin, size, substance, character, nature, finish, material, con- tent, or preparation) or credit terms, values, policies, services, or the 

nature or form of the business conducted. 

2. False Billing.-N o member of the industry shall knowingly 

withhold from or insert in any quotation or invoice any statement 

that makes it inaccurate in any material particular. 

3. Jna.ccurate Labeling.-No member of the industry shall brand 

or mark or pack any goods in any manner which is intended to or 

does deceive or mislead purchasers with respect to the brand~ grade, 

quality, quantity, origin, size, substance, character, nature, finish, 

material content, or preparation of such goods. 

4. I naccurate references to Oornpetitors, etc.-No member of the 

industry shall publish advertising which refers inaccurately in any 

material particular to any competitors or their goods, prices, values, 

credit terms, policies, or services. 

5. T lireats of Law Suits.-N o member of the industry shall publish 

or circulate unjustified or unwarranted threats of legal proceedings 

which tend to or have the effect of harassing competitors or intimidating their customers. Failure to prosecute in due course shall be 

evidence that any such threat is unwarranted or unjustified. 

6. SeC'ret Rebates.-N o member of the industry shall secretly directly off er or make any payment or allowance of a rebate, refund, 

commission, credit, unearned discount, or excess allowance, whether 

in the form of money or otherwise, nor shall a member of the indus- try secretly offer or extend to any customer any special service or 

privilege not extended to all customers of the same class, for the 

purpose of influencing a sale. 

7. Selling on Oonsignrnent.-No member of the industry shall ship 

goods on consignment except under circumstances to be defined by the 

Code Authority and approved by the Administrator. 
13 

8. Bribi11g Employees.-No member of the industry shall give, permit to be given, or directly offer to give, anything of value for the 

purpose of influencing or rewarding the action of any employee, 

agent, or representative of another in relation to the business of the 

employer of uch employee, the principal of such agent or the represented party, without the knowledge of such employer, principal, or 

party. 

~- Interf erence with Another's Contracts.-No member of the 

industry shall attempt to induce the breach of an existing contract 

between a competitor and his employee or customer or source of 

supply; nor shall any such member interfere with or obstruct the 

performance of such contractual duties or services. 

10. Return of M erchandise.-N o member of the industry shall 

accept for credit the return of merchandise from a purchaser, unle s 

such merchandise is not in accordance with the purchaser's specifications and in accordance with the order placed; if merchandise is not 

in accordance with the purchaser's specifications or is not in accordance with the order placed, then and in such event such merchandi e 

may be returned not later than five ( 5) days after the receipt thereof. 

Under no circumstances shall the return of merchandise be accepted 

by a member of the industry if retained by the purcha er for more 

than five ( 5) days after the receipt thereof. 

11. Assignments.-N o member of the industry shall hereafter take 

or receive directly or indirectly from any customers, either before 

or after the deli very of merchandise, an assignment of accounts 

receivable, or security in any form whatsoever for payment of the 

purchase price of merchandise without first notifying the Code 

Authority that such assignment or security is about to be received. 

12. Tenns and Discounts.-The Code Authority shall have power 

to recommend to the Administrator provisions concerning uniform 

terms and discounts, which recommendations, upon the approval of 

the Administrator, shall become effective as part of this Code. 

13. F.O.B. Ship11ie11ts.-The Code Authority shall have power to 

recommend to the Administrator provi ions concerning F.O.B. 

shipments, which provisions shall, upon the approval of the Administrator, become effective as part of this Code. 

14. Allowance for Advertising.-The Code Authority shall have 

power to recommend to the Administrator provision concerning 

allowances or discounts for advertising or payment for space in newspapers magazines, guides, or directories on behalf of retailers to 

be used in promoting the sale of merchandise to the consumer, 

which recom,menclations shall, upon the approYal of the Administrator, become effective as part of this Code. 

15. Other Unfair Practices.-Nothing in this Code , hall limit 

the effect of any adjudication by the Courts or holding by the Federal Trade Commission on complaint, fin lina, and order, that any 

practice or method is unfair, providing that uch adjudication or 

holding is not inconsistent with any provi ion of the t or of 

this Code. 

ARTICLE IX-MomFr ATION 

1. This Code and all the provisions her of ar pressly ma le subject to the right of the President, in accordance with th provi ions 

of subsection (b) of Section 10 of the National Industrial Recovery 
UNIVE RSITY OF FLORID A 

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3 1262 08486 8230 

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Act, from time to time to cancel or modify any order, approval, 

lfoense, rule, or regulation issued under title I of said Act and 

specifically, but without limitation, to the right of the President to 

cancel or modify his approval of this Code or any conditions imposed 

by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circumstances, such 

modification 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 President, except as otherwise provided herein. 

ARTICLE X-l\1oNoPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolist~c practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI 

Whereas the policy of the Act to increase re.al purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price 

increases should be delayed and that, when made, the same should, 

so far as reasonably possible, be limited to actual increases in the 

seller's costs. 

ARTICLE XII 

Effective Date.-This Code shall become effective on the second 

Monday following its approval by the President of the United States. 

Approved Code No. 151. 

Registry No. 228-03. 

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