Approved Code No. !A-Amendment No.1 Registry No. 299-48 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO SUPPLEMENTARY 

CODE OF F A!R COMPETITION 

FOR THE 

COTTON CONVERTING 

INDUSTRY 

(A Di~sion of the Cotton Textile Industry) 

AS APPROVED ON DECEMBER 27, 1934 

WE DO OUR PARr 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHIN GTON: 1935 

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 

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Houston, Tex.: Chamber of Commerce Building. 

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Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore .Avenue. 

Los .Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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Portland, Oreg.: 215 New Post Office Building. 

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Seattle, Wash.: 809 Fed1eral Office Building. 
Approved Code No. !A-Amendment No. 1 

AMENDMENT TO SUPPLEl\1ENTARY CODE OF FAIR 

COMPETITION 

FOR THE 

COTTON CONVERTING INDUSTRY 

As Approved on December 27, 1934 

ORDER :::.. 

.APPROVING AMENDMENT oF SUPPLEMENTARY ConE OF FAIR CoMPETITION FOR THE COTTON TEXTILE INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Indu trial 

Recovery Act, approved June 16, 1933, for approval of an amendment to a Supplementary Code of Fair Competition for the Cotton 

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 Pre ident, 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 provi ion and 

will promote the policy and purpo es of said Title of aid 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. 

NATIONAL INDuSTRIAL RECOVERY BoARD 

By W. A. HARRil\f N, Administ1·ative Office?'. 

Approval reconunended : 

PRENTIS L. CooNLEY, 

Acting Division Administ1·ator. 

\YA HINGTON, D. C., 

Deeen11Jer 27, 1934. 

105031°----1385-135----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 

Supplementary Code of Fair Competition for the Cotton Textile 

Industry held on September 28, 1934, in Room 2066, Department of 

Commerce Building, Washington, D. C. The amendment which is 

attached was presented by duly authorized representatives of the 

Industry, complying with statutory requirem_ents 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 a1nendment h 

The change in Article III extends the scope of definitions to include two new Divisions. 

The change in Division 1, Section V provides that certain activities 

of the Code Authority shall be subject to the approval of the 

National Industrial Recovery Board. 

Division 2, Section V provides that certain activities of the Code 

Authority shall be subject to the approval of theN ational Industrial 

Recovery Board. 

Division 3, Section 2, establishes delivery terms. 

Division 3, Section 6 provides that certain activities of the Code 

Authority hall be subject to the approval of theN ational Industrial 

Recovery Board. 

Division 4, Section 5 provides that certain activities of the Code 

Authority shall be subject to the approval of the National Industrial 

Recovery Board. 

Division 4, Section 8 prohibits options. 

Division 5, Section 7 provides; that certain activities of the Code 

Authority shall be subject to the approval of the National Industrial Recovery Board. 

Division 6, Section 6, provides that certain activities of the Code 

Authority shall be subject to the approval of the National Industrial Recovery Board. 

Division 7, Section 3, provides that certain activities of the Code 

Authority shall be subject to the approval of the National Industrial Recovery Board. 

Division 8 is a new division added to the Code. 

Section 1 establishes maximum terms of sale. 

Section 2 defines conditions relative to deliveries. 

Section 3 defines city of origin. 

Section 4 prohibits advertising allowances. 

Section 5 prohibits options. 

Section 6 conditionally prohibits consignments. 

Section 7 prohibits stock protection or stock guarantees. 

Section 8 prohibits transaction of business on Saturdays and 

Sundays. 

(2) 
3 

Divi ion 9 establi hes a new clivi ion of the Indu try. 

Section 1 establi hes maximum term of sale. 

Section 2 defines delivery terms. 

Section 3 defines city of origin. . . Section 4 establishe rules oncernmg sample requirements. 

Section 5 prohibits adverti ing allmYances. 

Section 6 prohibit option . Section 7 provides for uniform sales contract. 

Section 8 concerns contracts for future delivery. 

Section 9 prohibits stock protection or price guarantees. 

Section 10 conditionally prohibits consignment. 

Section 11 prohibits the tran action of busine s on Saturdays and 

Sundays. 

FINDINGS 

The Deputy Adrnini trator in his final report to the National 

Industrial 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 

productive capa.city of industries, by avoiding undue restriction of 

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

the conswnption of industrial and agricultural products through 

increasing purchasing power, ·by reducing and relieving unemployment, by improving the standards of labor and by otherwise 

rehabilitatinO' industry; 

(b) The C'ode 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 then~of; 

(c) The Code empowers 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 de igned 

to and will not permit monopolies or monopolistic 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 have not 

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

amendment. 

For these reasons this amendment ha been appro\ed. 

For the National Industrial Recovery Board: 

DECEMBER 27, 1934. 

w. A. HARRIMAN 

Adn~i ist1·ativ e Officer. 
A:l\1ENDMENT TO SUPPLEMENTARY CODE OF FAIR CO~IPETITION FOR THE COTTON CONVERTING INDUSTRY 

A DIVISION OF THE COTTON TEXTILE I -DUSTRY 

SECTION III 

Delete the first sentence of Section III and substitute therefor 

the following : " There shall be con tituted at this time in this branch of the 

Industry the following divisions of finished goods, the precise scope 

of these divisions being further defined in Section V hereof: 

1. Clothiers' Linings (other than all-cotton). 1> 

2. Corset, Brassiere, and Allied Trades Fabrics.<. 

3. All-Cotton Clothing Linings. 

4. Curtain and Drapery Fabrics. 

5. Shirtings. 

6. Wash Goods. 

7. Interlinings. 

8. Bleached Goods. 

9. Cotton Linings, for all purposes not otherwise provided." 

DIVISION 1 

SEariON 5. Substitute comma for period at end of last sentence 

in Section 5 and add the following: "subject to the approval of the 

Administrative Committee, the Code Authority and the National 

Industrial Recovery Board." 

DIVISION 2 

SECTION 5. Substitute comma for period at end of last sentence in 

Section 5 and add the following: "subject to the approval of the 

Administrative Committee, the Code Authority and the National 

Industrial Recovery Board." 

DIVISION 3 

SECTIONS 2 and 6. Strike out Section 2 and add a new Section as 

follows: 

"2. Deliveries.-All goods shall be sold f. o. b. mill or main warehouse, provided the location of such main warehouse shall be registered with the Textile Fabrics Association, and provided further 

that goods may be delivered without charge to the first common carrier (transportation agency) or to customer if located within the city 

limits of registered main warehouse." 

(4) 
5 

SECTION 6. Sub titute cormna :for period at end o:f la t sentence of 

Section 6 an l add the :following: " ubject to the approval o:f the 

AdministratiYe Committee, the Code Authority and the National 

Indus trial Re oYery Board." 

DrYISION 4 

SECTIONS 5 and 8. Sub titute comma :f r period at end o:f la t entence in Section 5 and add the :follmving: " ubj ect to the approval o:f 

the Admini trative Committee, the Code Authority and the National 

Indu trial Recovery Board." 

Add a new Section 8 as :follows: 

"8. Options.-No options shall be given." 

DIVISION 5 

SEcTioN 7. Sub titute comma :for period at end o:f last entence 

in Section 7 and add the :following: "subject to the approval o:f the 

Administrativ.e Committee, the Code Authority and the National 

Industrial Recovery Board." 

DIVISION 6 

SECTION 6. Substitute comma :for period at end o:f la t sentence 

in Section 6 and add the :following: "subject to the approval o:f the 

Administrative Committee, the Code Authority and the National 

Industrial Recovery Board." 

DIVISION 7 

SECTION 3. Substitute comma :for period at end o:f la t sentence 

in Section 3 and add the :following: "subject to the approval o:f the 

Administrative Committee, the Code Authority and the National 

Industrial Recovery Board." 

Add a new Divi ion 8 to Section V o:f the Supplementary Code 

as :follows : 

DIVISION 8-BLEACHED Goons 

DEFINITION 

The products included in this Division are tho e cloth commonly 

known as bleached goods, consisting o:f N ain ook , Long Cloth , Mu - lins and Cambrics, finished :from print cloth or other con tructions, 

in carded or combed yarns, and Pajama Check , Lino-erie Cloth , Handkerchief Cloths and Underwear Fabric , in white or tint fini hes, sold to cutters, wholesaler , chain tore , retailer , catalo<Yue 

and/or mail order houses. 

TRADE PRACTICE 

1. Terms o:f Sale shall not exceed 2%-10 clay , 60 

21f2 <fc -10 days, 30 xtra; or 3<fc . 0. D., or ;Yc -10 day , eff ctive :from date o:f invoice or hipment, whichever i earli r; n extra 
6 

dating to be allowed. Interest shall be charged at the rate of 6% 

per annum on all past due accounts, such charge starting at maturity 

of bill. Anticipation may be allowed at a rate not to exceed 6% 

per annum. 

2. Deliveries.-All goods shall be sold f. o. b. city of origin, with 

the exception of goods sold to retailers (not including chain stores) 

which shall be sold f. o. b. city of origin or main warehouse registered 

with the Textile Fabrics Association, and provided further t_hat 

goods sold to retailers (not including chain stores) may be delivered 

without charge to the first common carrier (transportation agency) 

or to store, if such store be located within the city limits of registered main warehouse. 

3. In the case of shipments from finished stock carried in New 

York City, the city of origin is the bleachery, dye works, andjor 

finishing plant at which the goods were processed. 

4. Advertising Allowances.-Fabric demonstration, or allowances 

therefor, or adverti ing allowances in any form, shall be prohibited. 

5. Options.-N o options shall be given. 1 

6. 0 onsigmnents.-N o merchandise may be sold on consignment, 

nor m.ay any method of selling be used which ha the effect of selling 

on con ignment or memorandum. Sample pieces to manufacturers 

for inspection are exempt from the application of this rule. The 

Divisional Committee shall have the power to suspend the operation 

of the provisions of this Section, subject to the approval of the 

Administrative Committee, the Code Authority and the National 

. Industrial Recovery Board. 

7. No stock protection or price guarantee shall be given. 

8. Saturday Olosing.-Sales offices shall not be open for the transaction of business on Saturdays and Sundays. 

Amend Section V of the Supplementary Code by adding a new 

Division 9 as follows : · 

DIVISION 9-COTTON LININGS FOR ALL PURPOSES NOT OTHERWISE 

PROVIDED 

DEFINITION 

The products included in this Division ~re cotton linings sold for 

use for all purposes not otherwise provided for in this Supplementary Code, including those sold for use in the manufacture of 

Dresses, Hats, Caps, Draperies, Furniture, Pocket-books, Neckwear, 

Millinery, Bias Bindings, Comfortables and Luggage, including 

those same fabrics when sold to other cutting trades and/or wholesalers, retailers, chain stores and/ or mail order distributors. 

TRADE PRACTICES 

1. Terms of sale shall not exceed 2%-10 days, 60 extra, or 2lj2%-10 

days, 30 extra, or 3%-10 days or 3%-C. 0. D., effective from date 

of invoice or shipment, whichever is earlier; no extra dating shall 

be allowed. Anticipation shall be charged at legal rate of interest. 

Past due payments shall carry interest at legal rate from date of 

maturity. 
7 

2. Deli e1vfe .-All good hall be old f. o. b. city of ori ain with 

the excepti n of good old to r tail r (not includina hain tore ) 

which hall be old f. o. b. city of origin or main warehou e r gi -t r d 

"ith the Textile Fabric A ociation, and provided furth r that aoods 

ld to r tailer (not including chain tore ) may b deliver l without charO'e to the fir t common carrier (tran portation aaency) or to 

store if uch tore be located within the city limit of regi tered main 

warehou e. 

3. In the case of hipments from finished tock carried in New 

York City, the city of origin i the bleachery, dye work , and/ or 

fini hing plant at which the good were proce ed. 

4. Sample R equire1nents.-All ample requirement furnished jobber , catalog hou e , chain tores and manufacturer hall be charged 

at full cost, calculating fabric furni hed at ales price. Reference 

set not to exceed three in number to any one customer may be furni hed free of charge on reque t. 

5. Advertising Allowances.-Fabric demonstration or allowances 

therefor or advertising allowances in any form what oever are 

prohibited. 1 

6. Options.-N o options shall be given. 

7. Unifor'1n Sales Oontract.-A form of ales note recommended 

by the Divi ional Committee and the Admini trative Committee and 

approved by the Code Authority and th_e National Industrial Recovery Board shall be used and adhered to on all ales for future 

delivery. 

8. Contracts for future delivery shall not be taken for a period 

exceeding five ( 5) months from date of original order. In cases 

where enforcement of this provision in the opinion of any member 

will work a hard hip on any customer, a further extension of thirty 

(30) days may be granted on application, and after approval by the 

Divisional Committee. 

9. No stock protection or price guarantee shall be given. 

10. No merchandise may be sold on con ignment, nor may any 

method of selling be used which has the effect of selling on con ignment or memorandum. Sample pieces to manufactur-ers for in pection are exempt from the application of this rule. The Divi ional 

Committee shall have the power to suspend the operation of the provisions of this Section, ubject to the approval of the Admini trative 

Committee, the Code Authority and theN ational Industrial Recovery 

Board. 

11. Sales offices shall not be open for the tran action of bu ine on 

Saturdays and Sundays. 

Approved Code No. lA-Amendment No. 1. 

Registry No. 299--48. 

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