Approved Code No. 201-Supplernent No. 1 Registry No. 280-03 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND 

DECORATIVE FABRICS TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON MARCH 6, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C. : Chamber of Commerce Building. 

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, l\Iich. : 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapoli , Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimor e Avenue. Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

1\lemphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhou e. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia. P a.: 42:2 ommercia1 Tru. t Building. Pittsburgh. P n.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, 'Vash . : 809 Feder al Office Building. 
Approved Code No. 201-Supplement No. 1 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND DECORATIVE FABRICS TRADE 

As Approved on March 6, 1934 

ORDER 

APPROVING SuPPLEMENTARY ConE OF FAIR CoMPETITION FOR THE 

UPHOLSTERY AND DECORATIVE FABRICS TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

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 Supplemental Code of Fair Competition for the Upholstery and Decorative 

Fabrics Trade to the Code of Fair Competition for the Wholesaling 

or Distributing Trade, and hearings having been duly held thereon 

and the annexed report on said Code, containing findings with respect theretq, having been made and directed to the Pres1dent: 

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 Decemoor 30, 

1933; and do hereby incorporate by reference said annexed report 

and do find that said Supplemental 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 Supplemental 

Code of Fair Competition be and it is hereby approved. 

HUGH s. JOHNSON' 

Aclmini._~trator for Industrid R ecovery. 

Approval recommended: 

A. D. wHITES IDE, 

Division Administrator. 

WASHINGTON, D.C., 

March 6, 1934. 

44402°----425-33----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House, 

SIR: This is a report of the Hearing on the Fair Trade Practi e 

S upplement of the Upholstery and Decorative Fabrics Trade to the 

Code of Fair Competition for the Wholesaling and Distributing 

Trade conducted in the Banquet Hall of the Carlton Hotel on December 8, 1933. The Supplemental Code which i attached ''as presented by duly qualified and authorized representatives of the Trade, 

complying with the statutory requirement , said to represent 75 percent in number and 90 percent in volume of the Trade which coulcl 

be included in this Code. 

THE TRADE 

There are no censu figures available coYering thi Trade. According to tatistics furnished by member of the Trade, there are 

approximately 125 concerns engaged in it. Their total annual sales 

in 1929 amounted to approximately seventy million dollars, and in 

1932 to forty million dollars. The Trade employs about 1600 

p er ons. 

PROYI 'IOKS OF THE CODE 

Since thi Code is supplemental to the General Code of Fair Competition for the \Yholesaling or Di tributing Trade, it contain no 

labor provisions. 

The provisions containing supplemental definition are inclu ·iye 

and accurate. 

The supplement to the administrative provi ions, establishes a 

Divisional Code Authority for this Trade, which is fairly and adequately representati-ve of the different elements in the Trade. Ac-

'orcling to the most accurate available statistic , the Upholstery and 

Decorative Fabrics Association of America contains among its lnember hip or is authorized to represent in the administration of the 

Code, 75 percent of the total number of concerns in the Trade. Its 

members sell approximately 80 percent of the total volume. The 

selection of four repre entatives of the Code Authority by the As ociation and one repre entative by non-member of the Association, 

therefore, seem to be fair. 

The Trade Practice rules contained in the Supplemental Code are 

not in any respect objectionable and are designed to promote fair 

dealing in the Trade. 

FIXDINGS 

The Deputy Admini h·ator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in thi matter; 

(2) 
3 

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 interstate and foreign 

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

inducing and maintaining united action of labor and management 

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by 

aYoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the 

pertinent provisions of said Title of said Act, including without 

limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 

and Subsection (b) of Section 10 thereof; and that the applicant 

group is a trade group truly representative of the aforesa.id Trade, 

and that said group imposes no inequitable restrictions on admission 

to membership therein. 

(d) The Code is not designed to and will not perm.it monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not elin1inate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said 

Code. 

For these reasons, the Supplemental Code has been approved. 

Respectfully, 

MARCH 6, 1934. 

HuoH S. JoHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE UPHOLSTERY AND DECORATIVE FABRICS 

TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To further effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a 

Supplemental Code of Fair Competition for the Upholstery and 

Decorative Fabrics Trade to the Code of Fair Competition for the 

Wholesaling or Distributing Trade, as provided by Article VI, Section 1 (c) thereof, and shall be considered as a part of and in connection with the said Code for the 'Vholesaling or Distributing 

Trade and both Codes shall be binding upon every member of such 

Wholesale Upholstery and Decorative Fabrics Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTING ARTICLE II OF THE GENERAL CODE 

1. The term " Upholstery and Decorative Fabrics Distributing 

Trade" as used herein includes the selling at wholesale of upholstery 

and decorative fabrics to interior decorators, upholsterers, and furniture manufacturers, and such branches or subdivisions thereof as 

may from time to time be included under the provisions of this Code. 

2. The term " distributor " is defined to mean any person engaged 

in the Trade. 

3. TheJerm "Association" as used herein refers to the Upholstery 

and Decorative Fabrics Association of America, a trade association 

of distributors. 

4. The term " Divisional Code Authority" as used herein means 

the Divisional Code Authority for the Upholstery and Decorative 

Fabrics Trade, a division of the vVholesaling and D1stributing Trade. 

ARTICLE III-ADMINISTRATION 

SUPPLEMENTING ARTICLE VI, SECTION 2, PARAGRAPH (E) OF THE GENERA-L 

CODE 

1. The Divisional Code Authority shall be composed of five 

members. 

(a) Four representatives of m.embers of the Association appointed 

by the Board of Directors of the Association. 

(b) One representative of non-member distributors assenting to 

this Code and consenting to pay their share of the cost of its administration, to be chosen as and when and in a manner prescribed by the 

Administrator. 

(4) 
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ARTICLE IV-TRADE PRACTICES 

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE. 

As expressly permitted in Article VIII, Section 2, of the Code of 

~air Competition for the 'Vholesaling or Distributing Trade, violahans of the following regulations constitute additional unfair 

methods of competition for members of the Upholstery and Decm·a- tive Fabrics Distributing Trade and are prohibited: 

1. Discrim .. ination.-Each distributor shall maintain, publish, and 

file with the Divisional Code Authority, a printed list quotino· his 

established wholesale prices for all fabrics. Each distributor ~hall adhere to said established price list as filed and amended from time 

to time and shall afford equal terms and prices to all buyers similarly 

situated in order thereby to avoid unfair discrimination. · 

2. Cash tenns shall not exceed 2% 10 days, due net 30 day , provided that extra datings not exceeding 60 days may be allowed to 

drapery and upholstery departments of retail stores and furniture 

manufacturers, and further provided that E. 0. M. terms may be 

granted. 

3. 10% d-iscou·nt may be allowed for full pieces and over, but in no 

case unless the full piece consist of 50 yards or more. It is further 

provided that 10% may be allowed on materials at not less than 

$1.00 per yard wholesale of half pieces of 25 yards and over, provided 

such purchases are for stock purposes. 

4. 0 ontra.ct sales to retail stores or manufacturers, provided such 

purchases are for stock; and contract sales for wholesalers, hotels, 

clubs, steamships, theatres, railroads, and other public work, need 

not be controlled by the provisions of pa:ragraphs 1 and 3 hereof. 

5. No secret rebates, and no dis::-ounts, bonuses, or special achantages of any kind, other than herein expressly authorized, shall be permitted, including "courtesy discounts" such as, but not limited by, 

those made to trade customers, and their employees for purchases to · 

be used in decorating their homes and their business establishments. 

6. Lost samples must be paid for by the borrower except that a 

25% allowance may be made where, in the judgment of the seller, 

special circumstances warrant it. 

7. Sample Orders: All sample lengths of fabrics other than 

swatches and samples bound in book form not exceeding 54 square 

inches, except chintzes and cretonnes which may be 216 square inches 

in size shall be billed at the regular price per yard without any allowance or trade discount. Nothing in this section shall apply to stocks 

of books on hand or under contract on December 9, 1933; provided 

that a list of such stocks or contracts are filed with the Divisional 

Code Authority within 10 days after the effective date of this Code. 

8. Returns. When merchandise is returned without fault of the distributor, a 10% service and depreciation charge shall be made, 

but no piece of less than 3 yards shall be accepted under such 

circumstances. 

9. Designs. No design owned by or in the use of which there is 

a property r.ight which belongs to an importer or jobber shall be 

pirated or copied without proper authorization. No reproduction 

in good faith of a museum piece or other significant pieces and no 
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innocent purchase of merchandise from a manufacturer shall be 

deemed a violation of this section. 

10. S eason L imes of memorandum samples shall be discontinued, 

and to that end no samples shall be permitted out on memorandum 

more than thirty days. 

11. Cornsignments. No yard goods merchandise shall be given out 

on consignment or memorandum, except under circumstances to be 

defined by the Divisional Code Authority where peculiar conditions 

of the trade require it. 

ARTICLE V-EFFECTIVE DATE 

This supplemental code shall become effective on the tenth day 

after date of approval. 

Approved Code No. 201., Supplement No. 1. 

Registry No. 280---03. 

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