Approved Code No. 125-Amendment No.1 Registry No. 280-1-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND DRAPERY 

TEXTILE INDUSTRY 

AS APPROVED ON FEBRUARY 6, 1935 

WE DO OUR PARt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

I I 

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Approved Code No. 125-Arnendrnent No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

- UPHOLSTERY AND DRAPERY TEXTILE 

INDUSTRY 

As Approved on February 6, 1935 

ORDER 

APPROVING AMENDMENT OF CoDE OF FAIR CoMPETITION FOR THE 

UPHOLSTERY AND DRAPERY TEXTILE 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 an amendment to a Code of Fair Competition for the Uphol ry and Drapery 

Textile Industry, and hearings having been duly held thereon and 

the annexed report on said amendment, containing findings with respect thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise, 

does hereby incorporate, by reference, said annexed report and· does 

find that said amendment and the Code as constituted after being 

amended comply in all respects with the pertinent provisions and 

will promote the policy and purposes of said Title of said Act, and 

does hereby order that said amendment be and it is hereby approved, 

and that the previous approval of said Code is hereby amended to 

include an approval of said Code in ·its entirety as amended with 

the exception that: 

The approval and the amendment of Subsections (d) , (f), (g), 

(i), (j), (l) and (n) of Section 1 of Article VIII shall take effect 

twenty (20) days from the date hereof, unless good cause to the 

contrary is shown to the National Industrial Recovery Board before 

that time and the National Industrial Recovery Board issues a 

subsequent order to that effect. 

NATION AL INDUSTRIAL REcovERY BoARD, 

By ,V. A. HARRIMAN, .Ad1ninistr-ative Officer. 

Approval r ecommended : 

PRENTiss L. CooNLEY, 

Div·ision Administrator. 

'VASHINGTON, D. c., 

February 6, 1935. 

114146°----1573- 24----35 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on a public hearing on an amendment to 

the Code of Fair Competition for the Upholstery and Drapery 

Textile Industry held on November 14, 1934 in Room 127 of the 

Willard Hotel, Washington, D. C. The amendment which is attached was presented by duly authorized representatives of the 

Industry, complying with statutory requirements and being the 

same agency that originally submitted the Code. 

In accordance with customary procedure every person who had 

filed a request for appearance was freely heard in public and all 

statutory and regulatory requirements were complied with. 

The following is a resume of the amendment : 

ARTICLE II 

Section 5, which defines " member of the Code " is deleted since 

the present amendment includes a mandatory assessment provision. 

Section 6 defiRes the National Industrial Recovery Board. 

r 

.ABTIOLE Ill 

Section 1 establishes maximum hours for certain classes of employees now excepted. 

Se"ction 3 enumerates those employees excepted from maximum 

hours. 

The change in Section 5 is merely a verbal alteration, "Board" 

being substituted for "Administrator." 

The new Section 7 of Article IV is the standard provision concerning handicapped workers. 

ARTICLE VI 

The changes in Section 1 are merely verbal alterations, "Board" 

being substituted for "Administrator" wherever it occurs. ~ 

An addition to Section 1 provides that proposed amendments to 

the Code shall first be referred to the Industry. 

The changes in Sections 2, 3 and 4 are merely verbal alterations, 

"Board" being substituted for "Administrator" wherever it occurs. 

The renumbering of Section 6 as Section 12 is merely an editorial 

change. 

Sections 6 and 7 are deleted since they are in conflict with certain 

provisions of the present amendment. 

A new Section 6 contains the standard provision concerning the 

keeping of records of transactions in the Industry. 

(2) 
3 

A new Section 7 contains the standard provision concerning submission of statistical information to the National Industrial 

Recovery Board. 

A new Section 8 contains the standard mandatory assessment 

clause. · 

A new Section 9 contains the standard provision for the payment 

of equitable contribution to the expenses of maintenance of the Code 

Authority. 

A new Section 10 contains a standard clause concerning expenses 

in excess of the amount of an approved budget. · 

A new Section 11 defines the liability of members of the Code 

Authority. 

The existing Article VII is deleted and a new Article VII is substituted therefor which contains the standard provisions concerning 

cost finding and destructive price cutting. 

The existing Article VIII is deleted and a new Article VIII is 

substituted therefor which contains provisions to be included in sales 

contracts and order blanks. 

ARTICLE IX 

The existing Section 5 is deleted and a new Section 5 substituted 

therefor concerning the distribution of sample cuttings. 

The changes in Section 6 are merely verbal alterations, "Board" 

being substituted for "Administrator " in the fl.rst and second 

sentences. 

Section 7 is deleted since this provision is no longer operative and 

a new Section 7 is substituted therefor which concerns false 

lDVOlClllg. 

ARTICLE X 

The changes in Section 6 are merely verbal alterations " his " and 

"he" being deleted and "the Board's" and "the Board" being substituted therefor. 

Section 10 is the standard clause providing for the establishment 

of standards of safety and health. 

FINDINGS 

The Deputy Administrator in his final report to the National Indpstrial Recovery Board on said amendment to said Code having 

found as hereinafter set forth on the basis of all the proceedings in 

this matter; 

The National Industrial Recovery Board finds that: 

(a) The amendment to said Code and the Code as amended are 

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 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 pro-
4 

.ductive capacity of industri s, by avoiding 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 the standards of labor and by otherwise rehabilitating industry; 

(b) The Code as amended 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; 

(c) The Code empowe:r:s the Code Authority to present the 

aforesaid amendment on behalf of the Industry as a whole. 

(d) The amendment .and the Code as amended are not designed to 

and will not permit monopolies or mon.opolistic practices. 

(e ) The amendment and the Code as amended are not designed to 

and will not eliminate or oppress small enterprises and will not 

operate to discriminate against them. 

(f) Those engaged in other steps of the economic process ha. ve 

not been deprived of the right to be heard prior to approval of said 

amendment. 

For these reasons this amendment has been approved. 

For the National Industrial Recovery Board: 

FEBRUARY 6, 1935. 

vv. A. HARRIMAN, 

Adrninist1·ativ e Office'!'. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE UPHOLSTERY AND DRAPERY TEXTILE INDUSTRY 

ARTICLE II-DEFINITIONS 

Delete Section 5. 

Section 6. Renumber as Section 5. 

Delete Secthm 7. Substitute therefor Section 6 as follows: 

SECTION 6. The term " Board " as used herein means the " N ationa! Industrial Recovery Board" appointed by the President under 

the National Industrial Recovery Act. 

Renumber Section 8 as Section 7. 

Renumber Section 9 as Section 8. 

Renumber Section 10 as Section 9. 

ARTICLE III-HoURs 

Delete Section 1 and substitute therefor a new Section 1, as 

follows: 

SECTION 1. No engineer, electrician, cleaner, fireman or employee 

working on a repair shop, shipping or outside crew, shall be permitted to work more than 40 hours per week, with a tolerance of 

ten percent; provided, however, that in the case of emergency maintenance or emergency repair work, involving breakdowns or protection of life or property, the foregoing maximum ·hours shal,l not apply, and provided further that all hours worked in excess of 40 

hours per week shall be compensated for at the rate of time and onethird. Emergency hours worked shall be reported monthly to the 

Code Authority provided for in Section 1 of Article VI. 

(a) W atchrrien shall not work or be permitted to work more than 

56 hours per week, provided, however, that such employees shall have 

one day off in seven. . Section 3 is amended in its entirety as follows: 

SECTION 3. No other employee, except outside sa les persons, and 

those employed in a managerial capacity earning in excess of $35.00 

per week, shall be permitted to work in excess of 40 hours per week. 

SECTION 5. Delete "Administrator " in the last line of Section 5 

and substitute therefor " Board". 

AnncLE IV-"\iV AGES 

Add a new Section 7 as follows : 

SECTION 7. A person whose earning capacity is limited because of 

age or phy ical or mental handicap or other infirmity may be employed on light work at a wage below the minimum established by 

this Code if the employer obtains from the State Authority desig-

(5) 
6 

nated 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 pers.ons employed by him, showing 

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

ARTICLE VI- ADMINISTRATION 

SECTION 1. Delete "Administrator" wherever it occurs in this Section and substitute therefor "Board." Substitute a semi-colon for 

the period at the end of the third sentence of Section 1 and add the 

following: 

provided, however, that proposed amendments to the Code shall 

not be submitted to the Board until they first have been referred to 

the Industry at a general meeting or by a mail vote. 

The Section as amended is as follows: 

SECTION 1. To further effectuate the policies of theN ational Industrial Recovery Act, a Code Authority is hereby set up to cooperate 

with the Board in the administration of this Code. Such Code Authority shall consist of not less than 8 nor more than 11 members, 8 

of whom shall be representatives of the Industry elected by a fair 

method of selection to be approved by the Board, and 3 of whom 

without vote may be appointed by the Board. Such agency may 

present to the Board recommendations based on conditions in the 

Industry as they may develop which will tend to effectuate the operation of the provisions of this Code and the policies of the National 

Industrial Recovery Act; provided, however, that proposed amendments to the Code shall not be submitted to the Board tmtil they first 

have been referred to the Industry at a general meeting or by a mail 

vote. Such recommendations, when approved by the Board, shall 

have the same force and effect as any other provisions of this Code. 

Sections 2, 3 and 4. Delete "Administrator" wherever it occurs in 

these Sections and substitute therefor" Board". 

Renumber existing Section 6 as Section 12. 

Delete Sections 7, 8 and 9 and substitute the following new sections 

therefor: 

SECTION 6. Each member of the Industry shall keep accurate and 

complete records of its transactions in the Industry whenever such 

records may be required under any of the provisions of this Code, 

and shall furnish accurate reports based upon such records concerning any of such activities when required by the Code Authority or 

the Board. If the Code Authority or the Board shall determine that 

substantial doubt exists as to the accuracy of any such report, so much 

of the pertinent books, records and papers of such member as may 

be required for the verification of such report may be exa~11ined by an 

impartial agency, agreed upon between the Code Authonty and such 

n1ember, or, in the absence of agreement, appointed by the Board. 

In no case shall the facts disclosed by such examination be made 

available in identifiable form to any competitor, whether on the Code 

Authority or otherwise, or be given any other publication, except 

such as m~y be required for the proper administration or enforcement 

of the provisions of this Code. 
7 

SEcTION 7. In 3;ddition to information required to be submitted to 

the Code Authonty, members of the Industry subject to this Code 

shall furnish such statistical information· as the Board may deem 

necessa:ry for the purposes re?ited in Section 3 (a) of the Act to 

such Federal and Stat-e agencies as the Board may designate; provided that nothing in this Code shall relieve any m-ember of the 

I ndustry of any existing obligations to furnish reports to any Government agency. No individual report shall be disclosed to any other 

member of the Industry or any other party except to such other 

Governmental agencies as may be directed by the Board. 

SECTION 8. It being found necessary, in order to support the administration of this Cod-e and to maintain the standards of Fair 

Competition established hereunder and to effectuate the policy of 

the Act, the Code Authority is authorized : 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purposes of the Code; 

(b) To submit to the Board for the Board's approval, subject to 

such notice and opportunity to be heard as the Board may deem necessary, (1) an itemized budget of its estimated expenses for the 

foregoing purposes, and (2) an equitable basis upon which the funds 

necessary to support such budget shall be contributed by members of 

the Industry; 

(c) After such budget and basis of contribution have been approved by the Board, to determine and obtain equitable contribution 

as above set forth by all members of the Industry, and to that end, 

if necessary, to institute legal proceedings therefor in its own 

name. 

SECTION 9. Each member of the Industry shall pay his or its 

equitable contribution to the expenses of the maintenance of the 

Code Authority, determined as hereinabove provided, and subject 

to rules and regulations pertaining thereto issued by the Board. 

Only members of the Industry complying with the Code and contributing to the expenses of its administration as hereinabove provided, (unless duly exempted from making such contribution,) shall 

be entitled to participate in the selection of members of the Code 

Authority or to receive the benefits of any of its voluntary activities 

or to make use .of any emblem or insignia of the National Recovery 

Administration. 

SECTION 10. The Code A"uthority shall neither incur nor pay any 

obligation substantially in excess of the amount thereof as estimated 

in its approved budget, and shall in no event exceed the total amount 

contained in the approved budget, except upon approval of the 

Board; and no subsequent budget shall contain any deficiency item 

or expenditures in excess of prior budget estimates except those 

which the Board shall have so approved. 

SECTION 11. 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, 
8 

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 wilful· malfeasance or non-feasance. 

ARTICLE VII-U NIFORl\f CosT AccouNTING 

Delete Article VII and susbtitute therefor a new Article VII as 

follmvs : 

AnTICLE VII-CosT FINDING AND DESTRUCTIVE PRICE CumNG 

SECTION 1. Cost Finding.-The Code Authority shall cause to be 

formulated methods of co t finding and accounting capable of use 

by all members of the industry, and shall submit such methods to 

the Board for review. If approved by the Board full information 

concerning such methods shall be made available to all members of 

the Industry. Thereafter each member of the Industry shall utiliz 

f'uch methods to the extent found practicable. Nothing herein con 

tained shall be construed to permit the Code Authority, or any agent 

thereof, or any member of the Industry to suggest uniform additions 

percentages, or differentials or other uniform items of cost which 

are designed to bring about arbitrary uniformity of costs or prices. 

SECTION 2. The standards of fair competition for the Industry 

with reference to price practices are declared to be as follows: 

(a) Wilful, destructive price cutting is an unfair method of competition and is forbidden. Any member of the Industry or of any 

other Industry or the customers of either may at any time complain 

to the Code Authority that any quoted price constitutes unfair competition as destructive price cutting, imperiling small enterprise or 

tending toward monopoly or the impairment of code wages and 

-working conditions. The Code Authority shall within five days afford an opportunity to the member quoting said price to answer such 

complaint and shall within fourteen days make a ruling or adjustment thereon. If such ruling is not concurred in by either party to 

the complaint, all papers shall be referred to the Research and Planning Division of N. R. A. which shall render a report and recommendation thereon to the Board. 

(b) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. 

(c) \Vhen an emergency exists as to any given product, sales below 

the stated minimum price of such product, in violation of Section 3 

hereof, is forbidden. 

SEcTION 3. E11W1·gency Provisions.-!£ the Board, after investigation shall at any time find both ( 1) that an emergency has arisen 

11ithin the Industry adversely affecting small enterprises or wages 

or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that 

the determination of the stated minimum price for a specified product within the Industry for a limited period is necessary to mitigate 

the conditions constituting such emergency and to effectuate the 

purposes of the Act, the Code Authority may cause an impartial 
9 

agency to investigate costs and to .recommend to the Board a determination of the stated minimum price of the product affected by the 

emergency and thereupon the Board may proceed to determine such 

stated minimum price. 

(a) vVhen the Board shall have determined such stated minimum 

price for a specified product for a stated period, which price shall 

be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Recovery Act, the Board shall publish such price. Thereafter, during 

such stated period, no member of the Industry shall sell such specified products at a net realized price below said stated minimum 

price and any such sale shall be deei!!ed destructive price cutting. 

From time to tim1e, the Code Authority may recommend review or 

reconsideration or the Board may cause any determinations hereunder to be reviewed or reconsidered and appropriate action taken. - Article VIII is amended in its entirety as follows: 

- ARTICLE VIII-UNIFORM SALEs CoNTRACTS AND ORDER BLANKs 

SECTION 1. Every sales contract or order, excepting fabrics sold 

to automobile manufacturers, shall contain the following provisions: 

(a) Prices shall be F. 0. B. Mill, which shall be understood as 

permitting free delivery by the manufacturer to common carriers 

and purchasers located in the Mill city. 

(b) In the event that the style, color, or other specifications necessary to filling the order are not specified therein, and the buyer 

shall decline to furnish such specifications at least ten days before the 

respective shipping dates, the seller may, at his option, complete the 

contract upon reasonable specifications. 

(c) All bills shall be payable at the seller's office or place of collection designated by the seller in par exchange or the equivalent 

legal tender of the United States, on a net basis in seventy (70) days 

from date of shipment; if paid within ten (10) days from date of ~:hipment, a maximum cash discount of two percent may be allowed. 

If the ten (10) days have elapsed, the buyer shall pay net, but shall 

have the privilege _of anticipating at the rate of six percent per an~_rm, for the unexpired portion of the seventy (70) day period. 

On all over-due bills, the buyer shall pay interest at the rate of six 

percent per annum. · (d) Seller or seller's agent shall have the right, at any time, on 

any unfilled portion of this contract, to limit any credit to be extended hereunder 9r to require payment before delivery, provided, 

always, that proper adjustment of discount or allowance of anticipation for such prepayment, be made. 

(e) 'Vhen agreed deli very period covers more than thirty ( 30) 

days, deliveries shall be in substantially equal quantities for each 

thirty (30) days unless otherwise specified. 

(f) Deliveries within ten (10) days after time specified shall constitute a good delivery. 

(g) Title shall pass from seller to buyer when invoice has been 

rendered and the relative goods accepted by a railroad or other 

common carrier, subject to the right of the buyer to specify such 

carrier, or stored on premises of the seller for the account of the 

buyer and subject to his order. 
10 

{h) This contract is subject to delays for non-delivery due· to 

strikes, lock-outs, fires, Acts of God or other causes beyond seller's 

control making delivery impossible. For such non-delivery the buyer 

shall have the right to cancel, by giving written notice to seller, any 

part of this contract, past due and undelivered by reason of such 

cause; seller shall have the same right, provided notice of such curtailment is mailed to buyer not later than five ( 5) days after any 

delivery, hereunder, is interrupted thereby. _ 

(i) Upon the resumption of normal production, seller shall declare to buyer new delivery dates for any part hereof, then past due; 

five days after recipt of such declaration, the rights to cancel, provided above, shall expire and the delivery schedules, thus amended, 

shall become valid under this contract. 

(j) Returns or claims must be made within thirty (30) days of 

the receipt of the goods, except for defects in material and/or workmanship and then only if the material has not been processed beyond 

the form in which it was delivered to the buyer. 

(k) It is agreed that the seller in accordance with the Code of 

Fair Competition for the Upholstery and Drapery Textile Industry 

cannot except the return of merchandise sold and delivered in due 

accordance and compliance with this contract or accept or permit 

any cancellation or modification as to price or terms in connection 

with merchandise not yet delivered, except as provided herein, provided, however, that adjustment may be made as found necessary on 

account of depreciation of buyer's credit. 

(l) Any delivery not in dispute shall be paid for regardless of 

controversies relating to other delivered or undelivered merchandise 

(m) · Any controversy or claim arising out of or relating to this 

contract or the breach thereof, shall be settled by arbitration, in 

accordance with the Rules, then obtaining, of the American Arbitration Association, and judgment upon the award rendered may be 

entered in the highest court of the forum, state or federal having 

jurisdiction; provided this provision for arbitration shall not have 

been deleted by the purchaser upon, or prior to, the execution of 

this contract. 

(n) The use of this contract shall not be required on orders 

amounting to less than one thousand dollars ($1,000.00) or for 

deliveries made in less than thirty ( 30) days. 

ARTICLE IX-UNFAIR TRADE PRACTICES 

Delete existing Section 5 and substitute therefor a new Section 5 

as follows: 

SECTION 5. Samples.-Giving samples of fabrics free of cost except that sample cuttings not larger than 6" x 9" may be sent for 

selection, free of charge; provided, however, that no more than 

six of any color or pattern shall be given to any customer in 

one season; and provided further, that larger bona fide samples 

may be sent on memorandum to be returned within thirty (30) 

days and if not so returned, to be billed at the regular price. No 

allowance or discount other than cash discount for merchandise 

sold is allowed for samples to be used in sample books. 
11 

SECTION 6. Delete "Administrator " 1n the first and second sentences substituting therefor "Board". 

Delete Section 7. 

Add a new Section 7 as follows: 

SEcTioN 7. lnvoicing.-No member of the Industry shall withhold 

from or insert in any invoice any statement which would make the 

invoice inaccurate in any material particular or a false record, wholly 

or in part of the transaction to which it refers; nor make any 

arrangement which contemplates payment or settlement different 

from that described on the face of the invoice. 

ARTICLE X 

SECTION 6. Delete "Administrator" in the second line and substitute therefor "Board". Delete "his" in the fifth line and substitute therefor "the Board's". Delete "he" in the fifth line and 

substitute therefor "the Board". 

SECTION 10. St~ndards of Safety and H ealth.-Every employer 

shall make reasonable provision for the safety and health of his 

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

Standards of safety and health shall be submitted by the Code 

Authority to the Board for approval within six months after the 

effective date of this amendment. The standards approved shall 

thereafter be a part of this Code and enforceable as such. 

Approved Code No. 125-Amendment No. L 

Registry No. 280-1-01. 

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UNIVERSITY OF FLORIDA 

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