Approved ode No. 48-Amendmcnt No. 5 Registry • 'o. 263-01 

NATIONAL RECOVERY ADMINI TRA IO~ 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

AS APPROYED 0 FEBRUARY 11, 1935 

WE DO OUR PART 

UNITED STATES 

GOVERKME 'T PRINTING OFFICE 

WASHINGTON : 1935 

For sale by 1he Superintendent of Documents, Washington, D. C. - - - - - - - - - Price 5 cents 
This publication is for sale IJy the Superintendent of Documents, Government 

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

If'oreign :md Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTME1 T OF COMMERCE 

Atlanta, Ga.: GO-± Post Office Building. 

Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1 01 Customllouse. 

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

Cha rl eston, S. C. : Clw.mber of Commer ce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Str eet. 

Cleveland, Ohio: Chamber of Commerce. Da llas, Tex. : Chamber of Commerce Building. 

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

Houston, Tex. : Chamber of Commerce Building. I ndianapolis, Incl. : Chambe r of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City. :Mo.: 1028 Baltimore · Avenue. 

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Portland, Oreg.: 215 New P ost Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Was? . : 809 F ederal Office Building. 
Approved Code No. 48--Amendment No. 5 

AMENDMENT TO CODE OF FAIR COMPE'riTION 

FOR THE 

SILK TEXTILE INDUSTRY 

As Approved on Feb1·uary 11, 1935 

ORDER 

ArrnonNG ..._\..J\mXDJ\r:F: ~ 'I' OF Com~ OF FAm Co:\-n,wnnox n 1: THE , ILK 

'l'E:s:TILE L:·D H1 nY 

An application haYing been duly ma le pur. uant to and jn full 

<'ompliance with the provi ·i n. of Titl I of the 1:Jational Intlustrial 

Recoyery Act, appro,e<l June 16, 1933, f 1· appron1l of an nmcnclJnent to a Code of Fair ompetitiou for th' ~ilk T xtil Inlu ·try, 

and hearings haYe been duly held thereon und the annexc(l l'E'})(H't 

on . ail amen lment containing finding~ with re. pcd tlwreto, ha Yiug 

been made and directed to the Pre ·iclent : 

NO\V, TI-IEREFORE, n behalf of the Pre:-~id nt of LlH.' rllitt><l 

'tates, the National Industrial Recon ry Boar l, pur:uant to <lllthrn·-

ity vested in it by E:s:ecuti \'e order: of th Pr .-i lent. inclu<ling 

ExecutiYe Order No. 6 59 dated S ptember 27, 1934, and )thenli . ...,e ; 

does hereby incorporate, by reference ·ail a11nexe<.l report and does 

find that .'ail amendment and the Cod a.- on ·titute<l after being 

amended compl) in all respect· with the pertinent provisions nn<l 

will p r omote the policy and purpo ·e · of :-:ai(l titl of said act aucl 

does hereby order that :aid ame.ndment be an lit i.- he~:eby approYNl . 

and that th pr Yious approYa l of aid Code i. her hy am JH1e<l to 

inclucle an approYal of . aid Code in its entirety a.- amenclcd. 

NATIONAL Ixnus'l"RI r, R ECOYERY Boann, 

By ,V. A. HARRI Lt\N, !diJninisfl·ath·f Of!ic&-r. 

Appr oval recommended : 

P nExnss L. CooxLEY, 

Acting Dh:isio-n Adminidra.to-r. 

VVASHINGTON, D. c., 

February 11, 1935. 

tt4nnl·----1573- 46----35 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

Th e 1Vhite House. 

SIR: Thi i · a report on the Hearing coYcring the Amendment to 

the Code of Fair Cmnpetition for the Silk Textilo Incl us try, held in 

the Fairfax Room at the \Villar 1 I-Iotel, vVashington, D. C., N ovember 7, 1934. The Amendment, which is atta"hecl, was presented by 

duly quaJjfied and authorized representatives of the Industry, complying w .ith statutory requirements and being the same Agency that 

originally ubmitted the Codt>. 

In accordance with customary pro"edure eYery person who had 

filed a request for a ppearancc was freely heard in public, and all 

statutory and regulatory requirements were complied with. 

PROVISIONS OF THE AMENDMENT 

There are 4 Amendments as follows : 

1. An Amenclment prohibiting commercial briberv. 

2. An Amendment defining duly accredited factors and/or authorized selling agents. 

3. An Amendment providi:n o· for open price filing for the Sewing 

Thread and Floss Division of the Industry. 

4. An Amendment regarding terms of sale of woven labels. 

FINDINGS 

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

found as herein set forth and on the basis of all the proceedings in 

this matter: 

It find that: 

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

well designed to promote the policies and purpo es of Title I of 

theN ational Industrial Recovery Act including the 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 tho purpo e of 

cooperative action among trade group ·, by inducing and maintaining 

nnited action of labor and management under adequate governmental 

sanction and upervision, by eliminating ·unfair competitive practices, by promoting the fullest possible utilization of the present 

productive capacity of industries, by avoidino· undue restriction of 

production (except as may be temporarily required), by increasing 

tho con umption of indu trial an l agricultural products through increasino· purchasing power, by reducing and relievino· unemployment, by improving the standards of labor, and by otherwi e rehabilitating industry. 

(2) 
3 

(b) Th Code a amended complies in all respects with the pertin nt provi ions of said Title of .-aid Act, including \v.ith ut limitation Snb ection (a) of Section 3, Subsection (a) of Section 7, and 

Sub.-ection (b) of Section 10 thereof. 

( ) The Code empowers the Cod \_uthor.ity to pr€t::ent the afore-

. ·aid amendment on behalf of the industry a a whole. 

(d) The amendment and the Code as amended are not de .igned 

to a nc1 will not permit 1nonopolies or monopolistic practices. 

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

to and will not eliminate or oppre small enterpri e · and will not 

oporate to discriminate against them. 

(f) Tho e engaged in other steps of the economic process have 

not been depriv-ed of the right to be heard prior to approval of said 

amendment. 

For these rea ons this amendment has been approved. 

For the National Indu trial Recovery Board: 

\V. A. HARRil\U.N' 

FEBRUARY 11, 1935. 

Adm,inistrative Officer'. 
A~fENDMENT TO CODE OF FAIR COMPETITION FOR 

THE ILl{ TEXTILE INDUSTRY 

Article VIII is an;~ ended by the a.ddition of a new section, section 

11, to read as follows: 

1. No employer shall give: permit to be given, or offer to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee~ agent, or re.presentative of another in relation to the bn ·iness of the employer of such employee; the principa.l 

of uch agent or the repre ented party, without the knowledge of 

such employer, principal or party. Thi.;:: provi ion sha.U not be construed to prohibit. free and general distribution of article · commonly u eel for adn:>rti. ing except so far as . neh articles are actually 

used for commercial bribery a. hereinabove defined. 

Article XI, Ribbon:--, i.: heroby amended by the addition of a new 

provision to read as follow. : 

The words " duly acc.redited factors and/ or authorized . elling 

agents '' a. used herein in relation to ribbon 1nanufacturer::s, are 

(lefined to mean individuals or concerns who sell merchandi ·o 

:hipped to them on con ignment or memorandum by manufacturers 

for . ·ale in the name of ,_uch manufacturers or factors or selling 

agents pnr:uant to a \Yritte.n agency agreement. All ribbon nmnnfacturers who ·ell through duly accredited factor.· and/ or authorized selling agent. shall cnt.fr into written agency agreement. · with 

said fn tors and/ or ::;elling agent~ and said written agency agreeJnents ·hall contain the following provi ions and specific.ations: 

(1) The manufacturer shall specify that the selling agent shall 

sell merchand.ic:e . hipped to him on consignment or memorandum at 

prices not less than tho. o determined by the manufacturer. 

(2) The 1nanufacturer . hall . et forth ii1 , aid agreement the ommissions to be paid the :elling agent.. 

(3) The manufacturer shall specify that duplicate · of each invoice giving full detnil: of all . ale .exclusive of the names of the 

pnrehasors, shall be . ·ubmitted to him monthly. 

( 4) The manufa.cturer :hall specify in said agreement that net 

proceeds of sales le. . commi ions and other deduction set forth 

shall be remitted to the manufacturer. 

( 5) The m.anufacturer . haH et forth in said agreement that recon- ~ignment of 1nerehandi. ·e . ·hipped to a, selling agent is prohibited 

except recon ·ignment to another regi. tered selling agent with the 

consent of the ma.nufa.cturer. 

(G) The manufacturer hall set forth in said agreement that duly 

accredited factors and/ or authorized selling agents cannot sell to 

themselvc,·. 

Article XI, Se-win()' Threads and Flosse , i. hereby amended by 

the addition of a new provision to read as follows: 

SECTION 1. Each member o£ the Sewing Thread and Floss Indus- try shall file with a confidential and disinterested a.gent of the Code 

(4) 
5 

Authority or, if none, then with such an agent cletiignat c1 by the 

National Indu 'trial Recovery Board~ identified lists o-f a 11 of hjs 

prices discount , rebate , allowances, and all other term .. ~ or con elitions of sale, ~reinafter in this Article referred to a , '· pric, terms ' 

which lists shall completely and accurately conform to and represent the individual pricing prac ice of aid member on his '' pound 

goods ", as differentiated from " bulk " or ' small good·.'' Such 

li ts shall contain the price terms for all such standard proclu ts of 

the industry as are sold or offered for sale by aid member and for 

. uch non-standard products of said member as hall be de ignat.ed 

by the Code Authority. Said price terms ·hall in the fir. t in tance 

be filed within fifteen (15) day after the date of approval of this 

provision. Price terms and r evise l price term: hall become effective immediately upon receipt thereof by . aid agent. Immediately 

upon receipt thereof said a()'ent hall by teleO'raph or oth r equally 

prompt means notify said member of the time of ·uch receipt. Such 

lit · and revision ·, too·ether with the effective time thc'l'eof . . hall upon 

receipt be immediately and simultaneou ly distributed to all members of the indu try and to all of their customer. who haY applied 

therefore and haYe offered to defray the cost actnally incurred by the 

Code Authority in the preparation and eli tribution thereof and be 

aYailabl for in pection by any of their ustomer at the office of 

such agent. Said li t or revi ·ion · or any part thpreof :hall not be 

made available to any person until relea c 1 to all member. of the 

indu try and their cu tomers, as aforesaid; provide l, tha prices 

filed in the fir t instance shall not be released until the :s:piration of 

the aforesaid fifteen (15) day period after the approva l of this provi ·ion. The Code Authority shall maintain a permanent file of all 

price terms filed a · herein provi led, and shall not de troy any part 

of such records except upon written consent of the N ationcll In Iustrial Recovery Board. Upon request the Code Authority shall furni h to the National Industrial Recovery Board or any duly de ignated agent of th" National Indu trial Recovery Board co pie. of 

any such list or revisions of price term . 

SECTION 2. \Yhen any member of tho industry ha filed any revi ·ion such member shall not file a higher price "ithin forty-eight 

( 48) hour . 

SECTIO:N 3. No momber of the industry shall ell or offer to ·ell any 

products/services of the indu,stry, for which price terms have been 

filed pursuant to the provi ions of this Article, except in accordance 

with such price terms. 

SECTION -!. No member of the industry shall enter into any agreement, understanding cmnbination or conspiracy to fix or maintain 

price terms, nor cause or attempt to cause any member of the industry to change his price terms by the u,se of intimidation, coercion, 

or any other influence inconsistent with the maintenance of the free 

and open market which it is the purpose of this Article to create. 

SECTION 5. Each employer in his Division shall report on or before 

August 1st and February 1st o.f each year his total dollar sales to 

each customer .for the preceding calendar half year. This information shall be held in strict confidence by the confidential agent and 

shall be used only as the basis for rendering the following reports. 
6 

On Srpt''lltbcr 1f't an<.l March 1st of each year. the confidential 

agent shall e. t.a blish the. ratings of all buyers of this division of 

the indn:-:tr. on the ba is of their purcha,ses for each calendar half 

year. The. e rating~ hall be on the basis of the present prevailing 

custom in the inchvtry of rating trade buyers in five clas ·es and jobbers in three cl a,sf'e . 

Upon written or telegraphic request, the confidential agent shall 

give member. of the division the rating of any individual buyer. 

The confidential agent shall on Septen1ber 1 t and ~1arch 1st of 

<'aeh year advise each individual buyer of his individual rating in 

this (livi~ion of the industry and ·hall advise each indiYidual buyer 

of his own jndi.vidual rating only and the ratings of other buyers 

shall lw kept confidential. 

The Code Authority hall have the ri!!ht to order the confidential 

agent to eheck and/ or correct any rating. upon reque t of any einploycr in tlw d i vi~ ion and/ or buyer. 

The cost of ompiling and di tributing this information to member. · of the d!,rj, ion and to all intere. ted parties shall be borne proportionately by all member · of the division de. iring this se r~ice. 

The confidential a(Yent s~a ll be appoin~ed by the Code Authority 

aml appron:d b~ the National Industnal Recovery Bonrd. The 

record.· of the confidential agent may be examined by a con~dential 

agent of the K ational Ind.n trial Recoyery Board at any time. 

Article XI, \Voven Labels, is hereby amended to read a.s follow : 

Each r.mployer ~hall bill woven labels on date of sh ipment upon 

the term. of 2/ 10 e. o. m. -

Appro,ed Code No. 48-Amendment No. 5. 

llcgistn- Ko. 263- 01. 

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