App1oved Code No. 451 . Registry No. 226.:....1-05 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR c ,oMPETITION 

FOR THE 

CANDLEWICK BEDSPREAD 

INDUSTRY 

AS APPROVED ON JUNE 1, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents; Washington, D.C. - - - - - - - - Price 6 cents 

V 
This publi cation is f or sale by the Superintendent of Documents, Government 

Printing Office, W a h ington, D.C., and by district offices of the Bureau of 

Foreign aud Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Gu.: 504 P ost Office Building. 

Birmingha m, Ala. : 257 F ederal Building. 

Boston, Mass.: 1801 Customhouse. 

Buffal o, N .Y.: Chamber of Commerce Building. 

b a rleston, S.C.: Cl1ambe r of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Cbamber of Commerce. 

Da ll as, Tex. : Chamber of Comme rce Building. 

D etroit , Mi ch.: 801 First National Ba nk Building. 

H ouston, Tex.: Chamber of Commerce Building. 

I ndianapolis, I nd.: Ch amber of Commerce Building. 

J ackso1w ille, Fla.: Chamber of Commer ce Iluilding. 

Kansa s City, l\Io. : 1028 Baltimore Avenue. 

Los Angeles, Ca lif.: 1163 South Broadway. 

Louisvill e, Ky.: 408 ]fede ral Building. 

Memph is, Tenn. : 229 Federal Building. 

l\'Iinneapolis, Minn. : 213 F ederal Building. 

New Orl a ns, La .: R oom 225-A, Customb use. 

New Y rk, N.Y. : 734 Cu tomb ou:se. 

Norfol k, Va .: 406 E a.st Plume Stree t. 

Phila d lpbia, P a . : 422 Commercial Tru t Building. 

Pittshurgb. P a . : b amber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Loui., Mo.: 506 Olive Str eet. 

San F rancisco. al ·f. : 310 Cu. tombou se. 

Seat·tle. W a sh.: 809 F ederal Office Building. 
Approved Code No. 451 

CODE OF FAIR COMPETITION 

FOR THE 

CANDLEWICK BEDSPREAD INDUSTRY 

As Approved on June 1, 1934 

ORDER 

CooE OF FAIR COMPETITION FOR THE CANDLEWICK BEDSPREAD INDUSTRY 

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 Candle-wick Bedspread Industry, 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 in corp-orate by ref erence said annexed report and do find that said Code complies in all respects with 

the pertinent provisions and will promote the policy and purposes 

of said Title of said Act; and do hereby order that said Code of 

Fair Competition be and it is hereby approved; 

Provided that, upon application of the Candlewick Bedspread 

Association, the provisions of Article IV, Section 2 of said Code, 

in so far as they provide for a compensation of eight cents ( 8¢ ) per 

ounce of yarn used for wor.k on the 60/60 spreads and ten cents ( 10¢) 

per ounce of }~arn used for work on the 64/64 spreads, be and they 

are hereby stayed until July 16, 1934, on condition that in the interim members of the Industry pay to home workers not less t.han 

six and one-fourth cents (61⁄4¢ ) per ounce of yarn used for work 

on the 60 / 60 spreads and not less than eight cents ( 8¢ ) per ounce 

of yarn used on the 64/ 64 spreads, pending my further order; 

And provided further that the approval of Article IV, Section 2 

and Article V, Section 2 is limited to such period as may be necessary for a commission appointed by me upon recommendation of 

the~Division of Research and Planning and the Labor and Industrial 

Advisory Boards to investigate the economic desirability of said 

64502°-657- 13-34 (111} 
112 

prov1srnn. It is pr posed that such comm1ss10n be immediately 

appointed by the Aclmini trator and directed to report with all rea- sonable expedition and if possible by July 16, 1934. \Vhen such 

commission ha reported, the Admini trator will hold a public hear- ing on the reports and findings of the commission giving inte:rested 

parties reasonable notice and opportunity to be hea rd. On the 

basis of such r eport and of the facts brought out at such public 

hearing, it is contemplated that these provisions and any other 

provisions in the Code, may be modified so as to meet existing 

conditions. 

Approval recommended: 

H. o. IvNa, 

HUGH s. JOHNSON' 

Adminutrator for Industrial R ecovery. 

Division Administrator. 

WASIDNGTON, D.C., 

June 1, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Hearing on the Code of Fair Competition for the Candlewick Bedspread Industry, conducted in Room 

2062, Department of Commerce Building, Washington, D.C., Monday, April 16, 1934. 

In accordance with the customary procedure, every person who 

filed a request for appearance was frooly heard in public, and all 

statutory and regulatory requirements were complied with. 

The Code which is attached was presented by duly qualified and 

authorized representatives of the Industry, claiming to represent 

ninety-two (~2%) per cent of the capacity of the Industry. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

This Industry is a traditional one in the homes of the mountain 

people of the Blue Ridge, but has been developed commercially only 

in the last twenty years. In its commercial phase this Industry is 

concentrated almost entirely in Whitfield, Murray Jordan and Bartow counties in North Georgia with its center at Dalton. Outside 

of the four counties there is one plant in South Carolina, one in 

Tennessee and one in Alabama. There are twenty-five (25) concerns in the Industry. 

The products of the Indu try are hand-tufted bed coverings, draperies, piece goods, pillow tops, bath mats and related products. 

There are from one hundred and fifty (150) to two hundred (200) 

persons normally employed in ·ide the plants of the Industry, and in 

addition it is estimated that from twelve thousand (12,000) to 

fifteen thousand (15,000) home workers are engaged in the tufting 

of the products of the Industry. The value of the products of the 

Industry was approximately $1,600,000.00 for 1933. 

P.ROVISIONS OF THE CODE 

The minimum wage for employees is twelve ($12.00) dollars per 

week, except for cleaners and learners for which the minimum is 

nine ($9.00) dollars per week. Learners are limited to ten per cent 

(10 %) of the total number of employees. With the exception of a 

few classes of employees the maximum number of hours permitted 

is forty ( 40) hours per week. 

The rate of pay for the home workers is based on eight cents ( ¢) 

per ounce for twelve (12) strand yarn worked on 60/60 spreads, or 

under, and ten cents (10¢) per ounce for twelve (12) strand yarn 

worked on spreads heavier than 60/60. The rate per hour produced by the Schedule of rates is difficult to determine accurately 

(113) 
114 

in view of the conditions under which the home work is done. l-Iowev r, evidence produced by the Manufactur rs would S"'em to ''indicate a . ield of from fifteen cents (15¢) to twenty cents (20¢) per 

hour from the above rates-which is from three to four times the 

rate in effect a year ago. 

The above rates are to be stayed until July 16, 1934, at which 

time they become effective- subject to a review and Public Hearing 

on the facts brought out at that time or shortly thereafter by a 

committee established under the Code to investigate labor and competitive conditions in the Industry. 

The rates which will be in effect during the period to July 16th 

are based on six and one--quarter cents (61⁄4¢) per ounce for 60/60 

spreads and eigl1t cents (8¢) p€r ounce for spreads heavier than 60/ 60. 

These rates compare with the rates of four cents ( 4¢) and six cents 

( 6¢) per ounce respectively in effect before the Corre and about two 

and one-half cents (21⁄2¢) per ounce in effect a year ago. 

vVhile fifteen cents (15¢) to twenty cents (20¢) per hour appears 

to be low, when compared to the minimum of thirty cents (30¢) per 

hour established in other textile codes, it is approximately three (3) 

to four ( 4) times the amount received in 1932 as stated. As the 

work is done in the home of the worker as a part time job and is 

not supervised by the manufacturer, it is believed that the rate is 

justified pending the further determination of facts by the investigating committee. 

FINDINGS 

The deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proce dings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of inter ta.te and foreign 

commerce which tend to diminish the amount thereof and will ,rovide for the general welfare by promoting the organization o industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and managem 0nt under adequate governmental sanctions and upervision by 

eliminating unfair competitive practices, by promoting the fulle t 

possible utilization of the present productive capacity of indu tries, 

by avoiding undue re triction of production ( except as may be 

temporarily r equired), by increasing the con umption of industrial 

and agrieultural products through incr asing pur ha ing power, bv 

reducino- and relieving unemployment, by im1 roving standards ovf 

labor, and by otherwise rehabilitating indu try. 

(b) Said Indus ry normally mploy~ not mor than fifty thousand 

(50,000) n1ploy es ; and j n t cla:- ifi el by m a a rnaj r indu try. 

( c) The de a approv d rnpli€ in all re p i with th p rtin nt provisions of said Ti le of s:iid A t includino- without limitati o 1 Sub e ·ti n (a) of Se tion 3, ub tion (a) f e tion 7, and 

Sub. cti n (b) f ection 10 thereof; an 1_ that the appli ant a o iation i an indu ·trial a . o iution truly re1 re ntative of tl af r aid 

Industry; and that aid as~ociation imp es no inequitable r trictions on ad mi ·sion to member hip th rein. 
115 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practice . 

( e) The Code is not de igned to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

( f) Tho e 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 the Code has been approved. 

Respectfully, 

JUNE 1, 1934. 

HUGH s. JOHNSON, 

Adm:inistra(<>r. 
CODE OF FAIR COl\f PETITION FOR THE CANDLE"\VICIC 

BEDSPREAD INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Rect>very Act, this Code is established as a code of fair competi- tion for the Candlewick Bedspread Industry and its provisions shall 

be the standards of fair competition for such Industry and shall be 

bincling upon every member thereof. 

AnTI CLE II-DEFINITIONS 

S FCTION 1. The term "Candlewick Bedspread Industry" as used 

herein, includes the converting of sheetings and yarn into handtufted bed coverings, draperies, piece goods, pjllow tops, bath mats 

and related products, together with such punch-work tufting as is 

incidental thereto, and the prima ry distribution of such products. 

SECTION 2. The term "member of the Industry" as used herein 

includes, but without limitation, any individual, partnership, association, corporation or other form of enterprise, engaged in the Industry 

as above defined, either as an emp1oyer or on his or its own behalf. 

SECTION 3. The term " Association " as used he.rein means the 

Candlewick Bedspread A!3socjation of Dalton, Georgia. SECTION 4. The term "employees" as used herein means only 

those employees working in the offices, warehouses, or establishments 

of members of the Industry. SECTION 5. The term "employer" as used herein means any me1nber of the Industry by whom employees are employed or compensated. 

ECTION 6. The term "home workers " as used herein means all 

persons engaged in the process of making hand-tufted bed coverings and all other hand-tufted products of the Industry from yarns, 

sheeting, and other materjals supplied them by men1bers of the Industry, which persons work on their own time and in their own homes 

or places away from the establishments of members of the Industry. 

SECTION 7. The term "hauler " as use.cl her ein means a person who 

distributes yarn, shee6ngs, and other materials from members of the 

Industry to home workers. SECTION 8. The term " cleaners " as used herein, shall include only 

those who pc,rform janjtorial services and clean machines, or not 

as sweepers and whose labor js confined to such t~sks. 

ECTION 9. The terms "President", "Act", and "Administrator" 

as used herein shall mean, respectively, th e President of the United 

States, Title I of the N atimrnl Industrial Recovery Act, and th.e 

Administrator for I nc1nstrial Recovery. EC'TION 10. The term "Corle Authority" as 11 sed herein means 

the Candlewick Bcdsprea<l Industry Code Authority set up in Article 

VI of this Co<lc. 

(11 6 ) 
117 

ARTI LE III-HoL~s 

r o employees in this Industry shall be perniitted to work in excess 

of forty (-:1:0) hours per week or eight ( 8) hours per day with the 

f ollowing exemptions: 

(a) Exe utive , office employees, and members of the supervisory 

staff who receive $35.00 per week or more, and outside salesmen and• 

haulers. 

(b) Office employees who receive less than $35.00 per week may 

work in excess of forty ( 40) hours p er week provided uch excess 

work shall not average more than forty ( 40) hours per week over a 

five week period; but in no event shall any office employee work 

more than forty-eight ( 48) hours per week during such period. 

(c) Watchmen who sha.11 not be employed in excess of fifty-six 

( 56) hours per week. 

( d) .J.. o employer shall kno-wingly permit any employee to work 

for any time which, when added to the time pent at work for 

another employer or employers in this industry ( or otherwise) , exceeds the maximum permitted herein. 

ARTICLE IV- WAGES 

SECTION 1. o employee shall be paid at less than the r ate of . 12.00 

per week except cleaners and learners. who hall not be paid le s 

than at the rate of 9.00 per week. The period of learning hall 

be limited to the first two months of the training. In this Indu try 

any time pent as a learner for another employer ~hall be credited 

to the two months' period of ]Mrning herein pre cribed. At no time 

shall the number of learners employed by any member of the Industry 

be in exce s of ten per cent ( 10% ) of the total number of employees 

employed by such member of the Industry. 

SECTION 2. The minimum cale of compen ation for all Candlewick work done by home workers shall be : 

(a) 8- per ounce for 12 strand unfini~hed yarn worked on all lio-ht 

weight spreads 60/ 60 or under, with 25¢ as minimum for any patt ern. 10¢ per ounce for 12 strand unfini hed yarn worked Olil all 

heavy weight spreads over 60/60, with 30 as minimum for any pattern. For each additional color or tone above three 5¢ shall be 

added on each spread. The price per ounce shall be doubled on all 

patforns where manufacturer or the pattern requires each stitch to 

be pulled up and cut separately and on all French knots. 12 strand 

yarn hall be the standard and any yarn with fewer strands shall be 

paid for a if its weight equaled the 12 strand. 

(b) For hemming spreads workers hall receive at least 1¢ per 

spread. 

( c) For laying off patterns from forms each worker shall receive 

at least 2¢ per spread. 

(d) For fringing the minimum cale of compensation shall be 25¢ 

f or single knot with 5¢ additional for each tie or knot.1 

SECTION 3. o employee shall receive f or forty ( 40) hours of labor 

less compensation than he r eceived or would ha.\e recefred as of 

August 1 1933, for not exceeding fifty-two ( 52) hours per week, 

1 See paragraphs 3 and 4 of order a.ppr-0ving this Code. 
118 

and the wage differentials for all operations shall be equitably readjusted. 

vVithin 30 days after the effective date, every member of the Industry shall report to the Code Authority action taken by him with 

res_pect to adjustment of wages above the minimmn. 

SECTION 4. A person whose earning ca.pacity 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 monthly with the Code Authority a list of all such persons employed by him, showing the 

.wages paid to, and the maximum hours of work for such employee . 

.ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. On and after the effective date of this code, no member of the Industry shall employ any minor under the age of 16 

years, nor anyone under eighteen (18) years of age at operations 

hazardous in nature or detrimental to health. The Code Authority 

shall submit to the Administrator before August 1, 1934, a list of 

such occupations which, upon his ap-proval, shall oo deemed hazardous in nature or detrimental to health within the meaning of this 

section. In any state an employer shall be deemed to have complied 

with the age provision, if he shall have on file a certificate or permit 

duly issued by the authority in such state empowered to issue employment or any certificates or permits, showing that the employee 

~s of the required age. 

SECTION 2. No member of the Industry shall di tribute material 

through haulers unless such haulers contract in writing not to accept 

from any home workers a compensation aggregating more than 15% 

of the amount received by such home worker for each finished product and in no event to accept a compensation of more than thirty 

cents ( 30¢) per spread. Such contracts shall further provide that 

haulers when delivering raw materials to workers should deliver 

them with a slip provided by the member of the Industry and printed 

with his name thereon, specifying the number of ounces of yarn 

required for each pattern a.nd the amount of compensation to be 

paid for each pattern. 2 

SECTION 3. In compliance with Section 7 (a) of the Act it is 

provided: 

(a) That employees shall have the right to organize and bargain 

collectively through representatives of their own choosino-, and shall 

be free from the interference, restraint, or coercion of employers of 

labor or their agents, in the cl ignation of such r pre ntatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual ail or prot ction. (b) That no employee and no one king empl ym nt hall be 

r quired as a condition of employment to join any company union 

JI See paragraph 4 of ord r approving this Code. 

• 
11~ 

or to refrain :from joining, organizing, or assisting a labor organization of his wn cl oosing, and 

( G) That employers shall comply with the maximum hours of 

labor, minimum rate 0£ pay, and other conditions of employment 

a ppro ed or prescribed by the President. 

SECTION 4. All employers shall po t and keep posted copies of this 

Code, in con~picuons places acc0 ssible to all employees. Every member of the Industry hall comply with all rules and regulations relative to the posting of provisions of Codes of Fair Competition, which 

may from time to time be prescribed by the Administrator. 

SECTION 5. No provision in this Code shall supersede any State or 

Federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, 

health, sanitary or general working conditions, or insurance, or fire 

protection, than are imposed by this Code. 

SECTIGN 6. Every employer shall provide £or the safety and health 

of employees during the hours and at the places of their employment. 

Standards for safety and health shall be submitted by the Code 

Authority to the Adm-inistrator within six months after the effective 

date of the Code. 

ARTICLE VI-ADMINISTRATION 

To further effectuate the policies of the Act, a Code Authority is 

hereby constituted to cooperate with the Administrator in the 

adn1inistration of this Code. 

SECTION 1. The Code Authority shall consi t of five members of 

the Industry to be elected in accordance with a fair method of 

selection, a pp roved by the Administrator. · SECTION 2. In addition to the membership as above provided, there 

n1ay be not more than three members without vote to be appointed 

by the Administrator, who will serve without expense to the Industry, except where the Industry agrees to such expense. 

SECTION 3. Each trade or industrial association directly or indirectly participating in the selection or activities o:f the Code Authority shall (1) in1pose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copies of its articles o:f 

a:ssociation, bylaws, regulations, and any amendments when made 

thereto, together with such other information as to membership, 

organization, and activities as the Administrator may deem necessary 

to effectuate the purposes of the Act. 

SECTION 4. In order that the Code Authority shaH at all times be 

truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may prescribe such 

hearings as he may deem proper; and thereafter if he shall find 

that the Code Authority is not truly representative or does 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. 

SECTION 5. Members of the Industry shall be entitled to partici- pate in and share the banefits of the activities 0£ the Code Authority 

(and to participate in the selection of the members thereof) by com- plying with the requirements of this Code and sustaining their 

reasonable share of the expenses of its administration. 
120 

Such reasonable share of the expenses of administration shall be 

determined by the Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other facts as 

may be deemed equitable. 

SECTTON 6. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any member of the Code Authority be liable in any manner to 

anyone for any act of any other member, officer, agent or employee 

of the Code Authority. Nor shall any member of the Code Authority, exercising reasonable diligence in the conduct of his duties 

hereunder, be liable to anyone for any action or omission to act 

under this Code, except for his own willful misfeasance or nonfea ance. 

SECTION 7. The Code Authority shall make the proper investigation of violation and endeavor to correct them and shall refer violations to the Administrator where adjustment cannot be made 

subject to the regulation of the Administrator. 

SECTION 8. The Code Authority shall ha:ve the. following powers 

and duties: 

(a) To insure the execution of the provisions of this Code and 

provide for the compliance of the Industry with the provisions of 

the Act in accordance with the regulations of the Administrator. 

(b) To adopt by-laws and rules and regulations for its procedure 

and for the administration of the Code. 

( c) To obtain from members of the Industry such information 

and reports as are required for the administration of the Code and 

in addition to information required to be submitted to any Code 

Authority, members of the Industry subject to this Code shall 

furnish such statistical information as the Administrator may deem 

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

such Federal and State agencies as the Administr~tor may designate; nor shall anything in any code relieve any person of existing 

obligations to furnish reports to Government agencies. No individual reports shall be disclosed to any other members of the 

Industry or any other party except to such governmental agencies 

as may be directed by the Admini trator. 

( d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Co~e and that such 

trade associations and agenci0 s shall at all times be subject to and 

comJ?lY with the provisions hereof. 

(e) To secure from members of the Indu tr) an equitable an l 

proportionate payment of the reasonable expen e of maintaining the 

Code Authority and its a tivitie . (£) To cooperate with the Admini trator in r aulating th u e of 

any N.R.A. in ignia solely by tho e members of the Industry who 

hav a nt d t and are compl_ ino- with thi od ·. ( o-) To recomm nd to th A lmini trator further fair trad pra tice 

provi i n tog vern memb rs f th In lu try in th ir relations with 

each other or with other industri sand t r comm nd to the Administrator mea ur for indu trial plannino- including tabilization of 

employm nt and to recommend to the Administrator amendments to 
121 

or modifications of thi Code after ubmitti~o- aid reoommendations 

to th members of the Industry. 

(h) To Equitably adjust compen ation to w9rkers on all compli- cated patterns either alone or with Representative of Labor at their 

r equ t · so that the net earnin0 on such preacl sh..all in no event be 

1 than the average net earnings which the workers shall receive 

from working pt·ea J of imple le ign at the 8¢ and 10¢ minimwn 

per ounce. And for the purpose of adju. ting compensation the Code 

Authority shall, subject to the disapproval of the Administrator, 

have the power to revise prices per ounce upward with or without 

notice to those concerned. 

SECTION 9. If the Administrator hall determine that any action of 

a Code Authority or any agency thereof is unfair or unjust or contrary to the public interest, the dmini trator may require that such 

action be suspended to afford an opportunity for investigation of the 

merits of such action and further con ideration by such Code Authority or agency pending final action, which shall not be effective 

unless the Administrator a.pproves or unless he sha.11 fail to disapprove after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

ARTICLE VII-TRADE PRACTICES 

The following shall constitute fair trade practice f or this Industry 

and any violation of any f air trade practice shall constitute a 

violation of, the Code. 

SECTIO 1. Sales B elow Oost.-No n1ember of the Industry shall 

sell or offer for sale any product at a price 1 s than his own individual cost of production, to be determined in accordance with the 

system of cot accounting which shall be approved by the Administrator upon r ecommendation of the Code Authority except to meet 

a lower competition price or to dispo e of distress merchandise, 

provided that cales of distress merchandise at prices below cost shall 

be reported to the Code Authority. 

SECTION 2. Every employer shall have a cost accounting system 

which conf orms to the principles of and is at least as detailed and 

GOmplete as the standard method of cost accounting system adopted 

by the Code Authority a.nd appro-ved by the Administrator, and 

which shall be used in determining his individual cGst of production. 

SECTION 3. l\femberc:; of this Industry shall file with the Code 

Authority a schedule. of a,lready quoted prices, terms, discounts, and 

Gonditions of sale for products of the Industry effective. on the date 

of mailing said schedule to the Code Authority. 

SECTION 4. Schedules of pric~, terms, discounts, conditions of 

sale and revised price li ts shall be open to the inspection o~ any 

inter ested party, and. the Code .a.uthority shall publish to the Industry said schedules of prices, termc:, discounts, and shall notify the 

members of the Industry of any revision of price lists. 

SECTIO 5. In order to maintain quality no member of_ the Indu try shall offer any product made on ~heeting of ligb.t or sub-count 

material le s than 87 in. two yards 60/60. 

SEcTio 6. Whenever a member of the Industry introduces a new 

pattern, di tinctive in motif and design, this pattern by cut..,or photograph shall be submjtted to .the Code Authority and registe1·ed 
122 

as the exclusive design of said member of the lndustry for a period 

not to exceed two years. No member of the Industry shall use a, 

registered pattern except by permission of the owner. 

SECTION 7. Cash discounts allowed by any member of the Industry 

shall not exceed three per cent 10th E.O.M. except when added into 

the invoice prices. All terms of sale shall be made on the basis of 

F.0.B. point o:f origin. 

SECTION 8. No member of the Indu try shall secretly offer or make 

any payment or allowance o:f any gi:ft, rebate, commission, refund, 

credit, unearned discount, or excess allowance whether in the form 

o:f m.oney or otherwise; nor shall any member of the Industry secretly offer or extend to any purchaser any special service or privilege not extended to all customers o:f the same class, :for the purpose 

of influencing a sale. 

SECTION 9. False Billing.-No member o:f the Industry shall 

knowingly withhold :from or insert in a quotation or invoice any 

statement that makes it inaccurate in any material particular. 

SECTION 10. Each manu:facturer or distributor shall, within thirty 

days a:fter the effective date o:f this Code, :furnish to the Code Authority and its secretary a list of his or its active patterns together 

with a certificate showing the weight and character o:f sheeting used 

in each pattern; the number o:f ounces o:f unwashed yarn required to 

complete said pattern into a finished spread; the rate o:f pay per· 

ounce :for working said pattern; the total amount of compensation to 

be received by each worker for working such pattern; the average 

time required :for working the same by average experienced workers, 

and shall include in each certificate the name of the worker who 

n1ade the test :for the distributor or manu:facturer. Every manu:fac-· 

turer or distributor who shall, after the effective date o:f this Code, 

put out :for work or introduce into the t:r;ade any new pattern shall 

first :furnish the Code Authority with the above in:formation on such 

proposed pattern. The Code Authority may require such other like 

information as it may at any time deem necessary or suitable or 

proper. Such information shall at all times be accessible to Representatives o:f the vVorkers. 

ARTICLE VIII-MomFicA TION 

SECTION 1. This Code and all the provisions thereof are expre sly 

made subject to the right of the Pre ident, in ac ordance with the 

provisions of subsection (b) o:f Section 10 of the Act, :from time to 

time to cancel or modi:fy any order, approval, licen e, rule or regulation issued under said Act. 

SECTION 2. This Code except as to provisions r quired by the Act, 

may be modified on the ba is of exp rience or chano-es in ircumtan e , u h modification to b ha d upon appli ation to th Admini trator and such noti e and h arino· a he hall specify and to 

become ffe tive on approval of the Admini trator. 

ARTICLE IX-1\1 N LIE ET . 

No provi ion of this ode hall be o appli d as to permit m n_ polies or monopoli tic pra tic , or to liminate, opr r , or di nminate against small enterprises. 
123 

ARTICLE X-PRICE INCREASES 

':\Thereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price increa es, except such as may be required to meet individual cost, 

should be delayed, but when made such increases should, so far as 

possible, be limited to actual additional increases in the seller's cost. 

ARTICLE XI-EFFECTIVE D ATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 451. 

Registry No. 226-1-05. 

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