Approved Code No. 6-Amendment No. 1 Registry No. 244-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENTS TO 

CODE OF FAIR COMPETITION 

FOR THE 

LACE MANUFACTURING 

INDUSTRY 

AS APPROVED ON DECEMBER 23, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

8. Amendment to Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASBINGTON : 1933 

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(II) 
Approved Code No. 6-Amendment No. 1 

AMENDMENTS TO CODE OF FAIR COMPETITION 

FOR THE 

LACE MANUFACTURING INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made by the Lace Manufacturing 

Industry Committee under date of September 27, 1933, pursuant to 

and in full compliance with the provisions of Title I of the National 

Ind~strial Recovery Act, approved J u1;e 16, 193~, _and p~rsuant to 

Articles V and XI of the ·Code of Fair Competit10n for the Lace 

Manufacturing Industry approved by me in my Executive Order of 

August 14, 1933, for my approval of amendments to said Code proposed in said application, and full hearings having been held thereon 

and the Administrator, under date of Decemb~r 9, 1933, having rendered his report containing an analysis of said amendments, together 

with his recommendations and findings with respect thereto, and the 

Administrator having :found, as set forth in said report, that the said 

amendments comply in all respects with the pertinent provisions of 

Title I of said Act and that the requirements of Clause 2 of sub-section (a) of Section 3 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, a pp roved June 16, 1933, and _otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that said amendments to 

the Code of Fair Competition for the Lace Manufacturing Industry 

pe, and they hereby are, approved and made a part of said Code. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 

HUGHS. JOHNSON, 

Administrator. 

THE WHITE HousE, 

December 23, 1933. 

28295°-296-39-33 (1) 
DECEMBER 9, 1933. 

The PRESIDENT, 

T lie White House. 

Srn : This is a report on a hearing of the modification of the Code 

of Fair Competition for the Lace Manufacturing Industry held in 

Washington, D.C., on October 18, 1933, submitted by the Lace Manufacturing Industry Committee in accordance with Article V of 

said Code approved by you in your Executive Order of August 14, 

1933. Application was made to this office under date of September 

27, 1933, by the Lace ~fanufacturing Industry Committee, the Planning and Fair Practice Agency for the administration of the Code 

of Fair Competition for the Lace :Manufacturing Industry, for modification of Article V and the elimination of Article VII, and the 

addition of Articles XII, XIII, and XIV. Article V provides that 

the Planning and Fair Practice Agency may submit recommendations to the Administrator for changes 1n, or additions to, the Code 

from time to time if the necessity therefor becomes apparent. Operation of the Code developed that a more comprehensive regulation 

was needed for the stabilization of the sales practices of the Industry. 

These provisions do not in any way a:ff ect the Wage and Hour 

provisions of the Code or the number of workers employed. 

The Administrator finds that : 

(a) The code as amended complies in all respects with the pertinent provisions of Title 1 of the National Industrial Recovery Act, 

including, without limitation, subsection (a) of Section 7, and sub~ 

section (b) of Section 10 thereof. 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein, and is truly representative of 

their Industry. 

( c) The provisions of the Code as amended are not designed to 

promote monopolies or to eliminate or oppress small enterprises and 

will not operate to discriminate against them, and will tend to e:ff ectuate the policy of Clauses one and two of the National Industrial 

Recovery Act. · 

It is recommended, therefore, that the modifications to this Code 

be adopted immediately. 

Respectfully submitted. 

(2) 

HUGH S. JOHNSON, 

Admi71istrator. 
AMENDMENTS TO THE CODE OF FAIR COMPETITION 

FOR THE 

LACE MANUFACTURING INDUSTRY 

The first sentence of Article V shall be modified to read as follows: 

" To effectuate further the policies of the Act, a Lace Manufacturing Industry Committee is hereby created to cooperate with the 

Administrator as a Planning and Fair Practice Agency for the Lace 

Manufacturing Industry, which Committee shall consist of five representatives of the Lace Manufacturing Industry elected by a fair 

method of selection, to be approved by the Administrator, and three 

members without vote appointed by the Administrator." 

and Article VI I shall therefore ~ eliminated. 

There shall be added at the end of said Code the following 

Article: 

XII 

" 1. Every person engaged in the Industry shall furnish the Code 

Authority within ten (10) days after the effective date of this 

Article a certificate listing and registering all his productive machinery, with sufficient information and description to make possible 

the positive identification 0£ such machinery at all times. 

"2. Prior to the installation of additional productive machinery 

by persons engaged or engaging in the Industry, except :for the 

replacement 0£ a similar number 0£ existing machines or parts of 

productive machinery to be used £or replacement or maintenance of 

existing machinery, such persons shall make application to the 

Administrator and secure a certificate from the Administrator that 

such installation will be consistent with effectuating the policy 0£ 

the National Industrial Recovery Act." 

There shall be added to said Code the following Article : 

XIII 

" 1. No person engaged in the Industry shall sell or offer for 

sale any product of the Industry at a price below his cost of production. It is provided, however, that any person may sell any 

product of the Industry at a price as low as the price set by any 

competitor on products which are identical or essentially the same, 

to meet the price competition of a lower cost producer. Any person who reduces his price to meet a competitor's price shall not be 

(3) 
4 

deemed to have violated the provisions of this Article if such person 

immediately notifies the Code Authority of his action and all facts 

pertinent thereto. 

" It is :further provided that the provisions of the foregoing paragraph shall not apply to the sale of discontinued patterns which 

the Code Authority, with the approval o:f the Administrator, may 

authorize. 

" The foregoing provisions of this Article shall not become eff ecti ve until the Code Authority, with the approval of the Administrator, shall have established and published a standard cost-finding 

system for the Industry. 

" 2. P ersons engaged in the Industry shall sell the products o:f 

the Industry only in compliance with the following terms: either 

8 percent, ten days, end of month, or 6 percent, ten days, 60 days 

extra, with no additional dating. It is provided, however, that 

where payment is made on the basis of 8 percent, ten days, end of 

month, it shall be permissible to grant dating as of the first of the 

following month on shipments made on and after the 25th of the 

month. Anticipation of payment may be allowed at the rate of 

not more than 6 percent per annum. Selling terms shall be either 

f .o.b New York or f .o.b. mill, deliveries to be free of charge to 

common carriers and to customers located in the city where the 

mill is located, and optionally to customers located within corporate 

limits of the City of Greater New York. Provided, however~ that 

the foregoing section shall not apply to government contracts. 

" 3. Secret discounts, extra dating, rebates, gratuities, acceptance 

of payment for invoices below original amount, credit allowances 

for purpose of reducing the price, shipping goods on consignment, 

or any other arrangement the effect of which will amount to a 

secret discount or rebate, is prohibited. This paragraph shall not 

apply to sample pieces shipped on memorandum, provided such 

shipments do not exceed one piece of any one pattern in one color 

for a period of not more than two weeks. 

" 4. Every person engaged in the Industry shall file with the Code 

Authority certified lists of prices and discounts, and also all subsequent revisions of such prices and discounts, and such lists and revisions shall be forwarded immediately to all manufacturers. A new 

price or revision of any price shall be given to the Code Authority 

ten (10) days prior to the date upon which such price or revision 

shall become effective, provided, however, that where any person 

files a new price or revision of a ~rice any of his competitors may 

also file a corresponding new or revised price to become effective upon 

the same date. 

" No person engaged in the Industry shall sell or contract to sell 

any product of the Industry at less than his published list price less 

published discounts as filed with the Code Authority. 

"5. Misrepresentation as to weight, quantity, size, quality, or grade 

of any product offered for sale shall be an unfair trade practice. 

. " 6. It shall be an unfair trade practice for any person engaged 

1n the I ndustry to make a colorable imitation of an original design 

of any other such person. The question of what constitutes a colorable imitation of an original design shall be determined by majority 

vote of a Board of seven appointed by the Code Authority and com-
5 

po ~d of persons engaged in the Industry or their rel?resentati~es, 

su~J~ct to appeal to the Administrator. ,vhere a quest10n of design 

originality arises which involves a memb~r of _the Bo_ard, the Code 

Authority shall relieve such member of his duties durmg settlement 

of uch question, replacing him with appoin!ment, pro te1:11.pore, of 

another person engaged in the Industry or his representative. 

' 7. The sale or offer for sale of veils or veilings which are unfinished or in the raw shall be an unfair trade practice." 

There shall be added to said Code the following Article: 

XIV 

"In order to prevent the manufacture of merchandise unsatisfactory to the consumer, the Code Authority, subject to the approval 

of the Administrator, may from time to time establish standards of 

minimum qualities for laces of particular technical descriptions. 

After reasonable notice has been given no laces shall be made of 

inferior quality to these minimum standards; provided, however, 

that the standards so established shall be approved by the majority 

of the Industry." 

Approved Code No. 6-Amendment No. 1. 

Registry No. 244-01. 

0 
UNIVERSITY OF FLORIDA 

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