Approved Code No. 201-Supplernent No. 14 Registry No. 286-02 

NATIONAL RECOVERY ADMINISTRATION 

• 

SUPPLEMENTARY 

C·ODE OF FAIR COMPETITION 

FOR THE 

WOOLENS AND TRIMMINGS 

DISTRIBUTING TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON JULY 23, 1934 

WE DO OUR P.urf 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 201-Supplernent No. 14 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WOOLENS AND TRIMMINGS DISTRIBUTING 

TRADE 

As Approved on July 23, 1934 

ORDER 

SuPPLEMENTAL CoDE OF FAIR CoMPE'l'ITION FOR THE W ooLENS AND 

TRIMMINGS DISTRIBUTING 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 \Voolens and Trimmings 

Distributing 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 Supplemental Code, containing findings with respect thereto, having been made and directed 

to the President: 

NOvV, 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 December 

30, 1933, and otherwise; 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; provided, however, that the provisions of Article IV, 

Section 3 be and they hereby are stayed pending my further order. 

HUGH S. JOHNSON, 

Adminutrator for Industrial Recovery. 

Approval recommended: 

ROBERT L. HOUSTON' 

Division Administrator. 

w ASHINGTON, D.C., 

July 1£3, 1934. 

75620°-829-132-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report of the Hearing on the Supplemental Code of 

Fair Competition of the Woolens and Trimmings Distributing 

Trade, conducted in the Green Room of the Raleigh I-Iotel on May 

8, 1934. The Supplemental Code, which is attached, 1Vas presented 

by duly qualified and authorized representatives of the Trade, complying with the statutory requirements. 

THE TRADE 

According to the census of "\Vholesale Distribution for the year 

1929, there were 136 establishments distributing tailors' trimmings 

and supplies, and employing 585 persons with annual net sales of 

$11,327,000. However, this figure does not include the further breakdown by the census of Wholesale Distribution under woolens and 

worsteds. Under this heading for 1929 there were 327 establishments employing 2,548 people with annual net sales of $95,459,000. 

The figures submitted by the Trade state that there are 225 concerns employing 2,500 persons with aggregate annual sales of 

$40,000,000. It is believed that the Trade's figures represent a fairly 

true picture of the Trade as could be included under the definition of 

this Supplemental Code. 

PROVISIONS OF THE CODE 

The provisions containing supplemental definitions are considered 

inclusive and accurate. 

The Administrative provisions supplementing the General Code 

establish a Divisional Code Authority which is fairly and adequately 

representative of all the different elements in the Trade. 

The Trade Practice supplemental provisions are not considered in 

any way objectionable. 

FINDINGS 

The Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis of 

all the proceedings in this matter; 

I find that 

(a) Said Supplemental 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 

(2) 
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among trade groups, by inducing and maintaining united action 

of labor and management under adequate governmental sanction and 

supervision, by eli1ninating unfair competitive practices, by promoting the fullest possible use of the present productive capacity of 

industries, by avoiding undue restriction of production ( except as 

1nay be temporarily required), by increasing the consumpti<1n 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 it is not classified by me as a major industry. 

( c) The Supplemental 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 ; {lnd that the 

applicant association is a trade association truly representative of 

the aforesaid Trade; and that said association imposes no inequitable restrictions on admission to membership therein. 

( d) The Supplemental Code is not designed to and will not permit 

monopolies or monopolistic practices. 

( e) The Supplemental Code is 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 the approval of this 

Supplemental Code. 

For these reasons, the Supplemental Code has been approved. 

Respectfully, 

JULY 23, 1934. 

HUGH s. JOHNSON' 

Administrator. 
SUP'!>LEMENTARY CODE OF FAIR COMPETITION FOR 

THE WOOLENS AND TRI1\1MINGS DISTRIBUTING 

TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial Recovery Act, this Supplemental Code is established as a Code of Fair 

Competition for the Woolens and- Trimmings Distributing Trade 

pursuant to Article VI, Section 1 ( c) of the Code of Fair Competition for the vVholesaling or Distributing Trade, approved by the 

President of the United States on January 12, 1934. All provisions 

of the said General Code which are not in conflict with the provisisions of this Supplemental Code are hereby specifically incorporated 

by reference in this Supplemental Code and made part hereof. Such 

provisions of the General Code together with the provisions of this 

Supplemental Code are the standards of fair competition for and 

are binding upon every member of said Woolens and Trimmings 

Distributing Trade. 

ARTICLE II-DEFINITIONS 

SUPPLEMENTING ARTICLE II OF THE GENERAL CODE 

SECTION 1. Wholesaler or Distr-ibidor.-The term " vVholesaler " 

or " Distributor " as used herein, shall be defined to mean any individual, partnership, association, corporation, or other form of 

enterprise or definitely organized division thereof organized for the 

specific purpose of rendering a general distribution service, engaged 

in the selling of ,v oolens and Trimmings to Merchant Tailors 

through the use of salesmen, advertising, catalogues, and/or other 

sales promotion devices. 

SECTION 2. The Tra,de.-The term " the Trade " as used herein, 

shall be defined to mean the business in which Wholesalers or Distributors as above defined, are engaged. 

SECTION 3. Divisional Code Au.thority.-The term "Divisional 

Code Authority", as used herein, shall be defined to mean the Divisional Code Authority for the Woolens and Trimmings Distributing 

Trade, a Division of the Wholesaling or Distributing Trade. 

SECTION 4. General O ocle.-The term " General Code "~ as used 

herein, shall be defined to mean the Code of Fair Competition for 

the Wholesaling or Distributing Trade. 

SECTION 5. Woolens and Trimxnings.-The term " Woolens and 

Trimmings" as used herein, shall be defined to include all types of 

woolens and tailors trimmings and expendable supplies, customarily 

used by Merchant Tailors. 

(4) 
5 

SECTION 6. Merchant Tailors.-The term "Merchant Tailors" as 

used herein, includes Merchant Tailors, Custom Tailors, Tailoring 

Departments of retail or department stores and any retail establishment where clothes are made or sold to the individual measurement. 

SECTION 7. Season.-The " Spring Season " as used herein, is defined as commencing January 1, and expiring June 30th; and the 

" Fall Season " is defined as comn1encing July 1 and expiring 

December 31st. 

ARTICLE III-ADMINISTRATION 

SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 

SECTION 1. (a) The Divisional Code Authority shall consist of 

seyen (7) members from among the Trade or representatives thereof, 

five ( 5) to be selected by the Board of Directors of the National 

vV oolens & Trimmings Association ; one ( 1) to be selected by the 

Pacific Coast ,v oolens & Trimmings Association and one ( 1) to ba 

selected by the Administrator, to represent those members of the 

Trade who are not members of either Association. 

(b) The terms of office of members of the Divisional Code Authority and the method of electing their successors, either for full 

new terms or for unexpired terms, shall be established in the By-Laws 

of the Divisional Code Authority. 

SECTION 2. Subject to such rules and regulations as may be prescribed by the Administrator, the Divisional Code Authority shall 

have the following duties and powers in addition to those prescribed 

in the General Code: 

(a) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

Codes of Fair Competition as may be related to the Trade, except 

other Supplemental Codes to the General Code, for the purpose of 

formulating fair trade practices to govern the relationship between 

production and distribution employers under this Supplemental Code 

and under such others to the end that such fair trade practices may 

be proposed to the Administrator as an amendment to this Supplemental Code and such other Codes of Fair Competition. 

(b) To organiz-e, elect officers, hire employees, and perform such 

other acts as may be necessary for the purposes of administration of 

this Supplemental Code. 

(c) To adopt By-Laws and rules and regulations for its procedure. 

( d) To use such Trade Associations and other agencies as it 

deems proper for the carrying out of any of its activities provided 

for herein; provided that nothing herein shall relieve the Divisional 

Code Authority of its duties or responsibilities under this Supplemental Code and that such Trade Associations and Agencies shall 

at all times be subject to and comply with the provisions hereof. 

( e) To recommend to the Administrator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the Ttade in their relations with each other or 

with other trades, measures for industrial planning, and stabilization of employment; and including modifications of this Supplemental Code which shall become effective as part hereof upon ap-
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prov:al by the Administrator after such notice and hearing as he may 

specify. 

( f) To obtain from members of the Trade such information and 

reports as are required for the administration of the Supplemental 

Code. In addition to information required to be submitted to the 

General Code Authority and to the Divisional Code Authority members of the Trade subject to this Supplemental Code shall furnish 

such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act, to such 

federal and state agencies as he may designate; provided that nothing in this Supplemental Code shall relieve any member of the Trade 

of aRy existing obligations to furnish reports to any governmental 

agency. No individual report shall be disclosed to any other member 

of the Trade including Members of the Divisional Code Authority or 

any other party except to such other governmental agencies as may 

be directed by the Administrator. No such data or information 

shall be published, except in combination with similar data, and in 

such manner as to a void the disclosure of confidential information. 

SECTION 3. It being found necessary in order to support the Administration of this Supplemental Code and to maintain the standards of fair competition established hereunder and to effectuate the 

policy of the Act, the Divisional 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 ana which 

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

(b) To submit to the Administrator for his approval, subject to 

such notice and opportunit:y to be heard as he 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 

Trade; 

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

contribution as above set forth by all members of the Trade, and 

to that end, if necessary, to institute legal proceedings therefor in its 

own name. 

SECTION 4. Each member of the Trade shall pay his or its equitable contribution to the expenses of the maintenance of the Divisional 

Code Authority, determined as hereinabove provided, and subject 

to rules and regulations f ertaining thereto issued by the Administrator. Only members o the Trade complying with the Code and 

contributing to the expenses of its administration as hereinabove 

provided, shall be entitled to participate in the selection of members 

of the Divisional 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 5. The Divisional Code Authority shall neither incur nor 

pay any obligation in excess of the amount thereof as estimated in its 

approved budget, except upon approval of the Administrator; and 

no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the 

Administrator shall have so a pp roved. 
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SECTION 6. Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authori~y partners for 

any purpose nor shall any member of the Divisional Code Authority 

be liable in any manner to anyone for any act of any other member, 

officer, agent, or employee of the Divisional Code Authority. Nor 

shall any member of the Divisional Code Authority exercising reasonable diligence in the conduct of his duties hereunder be liable to 

anyone for any action or omission to act under this Supplemental 

Code except for his own wilful misfeasance or non-feasance. 

SECTION 7. If the Administrator shall determine that any action 

of the Divisional Code Authority or any Agency thereof, may be 

unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and for further 

consideration by such Divisional Code Authority or Agency, pending 

final action, which shall not be effective unless the Adnnnistrator 

approves or unless he shall fail to disapprove after thirty (30) days' 

notice to him of intention to proceed with such action in its original 

or modified form. 

SECTION 8. In order to assist in making effective the reports from 

the Trade and in eliminating unfair competition, the Divisional 

Code Authority shall, within one month after the effective date of 

the Supplemental Code, appoint a committee so constituted as to 

give producer, consumer, and governmental representation, to make 

a study with a view to the establishment of classifications and standards of quality of products of the Trade, wherever such standards 

are deemed feasible. The findings and recommendations of this 

committee shall, within six months, be submitted to the Administrator, and after such hearings and investigations as he may designate, and upon approval by him, shall be made a part of this Supplemental Code and be binding upon every member of the Trade. 

ARTICLE IV-TRADE PRACTICES 

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 

SECTION 1. The following maximum terms, discounts and datings 

shall prevail and any violation thereof shall be deemed a violation 

of this Supplemental Code: 

(a) Maximum terms and cash discounts shall be five per cent 

(5%), ten (10) days; three per cent (3% ), forty (40) days; net, 

sixty ( 60) days. 

(b) An Order, for woolens of less than thirty (30) yards, and/ or 

an order for trimmings, the total purchase price of which is less 

than Seventy-five Dollars ($75.00), shipped prior to the twenty-

.fifth (25) day of any month, may be dated as of the first day of 

the following month. 

( c) An Order, for woolens of less than thirty ( 30) yards, and/ or 

an order for trimmings, the total purchase price of which, is less 

than Seventy-five Dollars ($75.00), shipped on or after the twenty-

.fifth (25) day of any month, may be dated as of the first day of 

the second month following. 

( d) In addition to the dating provided for in paragraphs (b), 

and ( c), a Stock Order, for woolens of not less than thirty ( 30) yards 
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an~/or. a Stock Order for trimmino-s the total purchase price of 

which 1s not less than Seventy-five l)ollars ($75.00) shipped at one 

time after March 1st, for the Spring Season and after September 

1st for the Fall Season, may carry an additional thirty (30) days' 

dating. 

( e) An Advance Order for woolens of not less than thirty ( 30) 

yards, and/ or an Advance Order for trimmings, the total purchase price of which is not less than Seventy-Five Dollars ($75.00) 

placed at one time and providing for one specified date of delivery, 

may be dated April 1st for the Spring season for goods shipped on 

or after January 1st of such season and October 1st for the Fall 

season, for goods shipped on or after July 1st of such season. 

( f) Members of the Trade shall charge interest on all past 

due accounts at the rate of 6% per annum, unless the legal rate 

be lower, in which case such lower rate shall prevail. Interest shall 

be computed from maturity or from the 30th day after maturity. 

(g) The rate allowed for Anticipation shall not be in excess of 

six per cent (6% ) per annum. 

(h) The deduction of a cash discount is not allowable when payment is made by Note or Trade Acceptance. 

SECTION 2. There shall be no discrimination in the price of woolens 

and trimmings to Merchant Tailors. Goods shall be quoted or 

priced on a net basis and no discounts shall be allowed therefrom 

except discounts for cash payment provided for in paragraph (a) 

Section 1 of this Article. 

Provided, however, that nothing in this Section shall be construed 

to prevent reasonable and fair price differentials from being allowed 

on the basis of quantity purchased and/ or shipped and/ or billed at 

one time to a single buyer or on the basis of such other factors as the 

Administrator shall deem proper. 

SECTION 3. It shall be an unfair trade practice :for any Wholesaler to sell or offer to sell woolens and/ or trimmings at such prices 

or upon such terms or conditions of sale that the buyer will pay 

less therefor than said '\,Vholesaler's individual cost. Such cost 

shall include the actual net invoice cost of the woolens or trimmings 

to the Wholesaler plus transportation cost to the vVholesaler's warehouse. Such cost shall further include actual wages for store labor 

or labor involved in direct handling when determined in accordance 

with an accounting formula to be determined by the Divisional Code 

Authority and approved by the Administrator. Nothino- herein contained shall be construed to permit the Divisional Code Authority, 

any agent thereof, or any member of the Trade to suggest uniform 

additions, percentages or differentials or other uniform items of cost 

w~ich are designed to bring about arbitrary uniformity of costs or 

prices. 

Nothing contained in the above paragraph shall be interpreted to 

prevent the sale below cost at prices necessary for their disposal of 

discontinued lines from previous selling seasons, surplus merchandise accumulated from previous selling seasons, or damaged merchandise, or forced liquidation of current stocks due to financial embarrassment, provided that in such cases of forced liquidation the 

approval of the Divisional Code Authority, subject to the disapproval of the Administrator, must be secured before such sale may 
9 

be made, and the member of the Trade shall certify that he is acting 

in good faith. 1 

SECTION 4. No goods shall be delivered 011 consignment except 

where the Divisional Code Authority may allow under circumstances 

to be defined by it. Goods shall not be delivered on a sale or return 

basis nor shall goods be delivered upon memorandum or for display 

or otherwise for the purpose of evading the terms of this provision. 

Nothing in this section shall be construed to prohibit the delivery 

of samples not exceeding sixty-five (65) square inches in size. 

SECTION 5. (a) All woolen lengths based on a fifty-six inch (56") 

width or over, on double width six-quarters (6/ 4) goods and on a 

twenty-eight inch {28") width or over on single width three-quarters (3⁄4) goods, must be measured not to exceed thirty-seven inches 

(37") to the yard. All linings shall be measured not to exceed 

thirty-six inches (36") to the yard. 

(b) No claim may be allowed for short measure for any length 

delivered measuring thirty-six inches (36") to the yard before being 

shrunk. 

( c) No allowances for short measure shall be made after the goods 

are cut by the purchaser. 

SECTION 6. Nothing contained in this Supplemental Code shall be 

construed as preventing the establishment of higher prices for purchases from samples than for purchases for stock. 

SECTION 7. It shall be an unfair trade practice for members of 

the Trade to give special personal use discounts, lower prices, gratuities, or other merchandise to any ~1erchant Tailor, or any employee 

of any Merchant Tailor. 

ARTICLE V-MODIFICATION 

This Supplemental Code and all the provisions thereof are expressly made subject to the right of the President, in accordance 

with the provisions of sub-section (b) of Section 10 of the Act, 

from time to time, to cancel or modify any order, approval, license, 

rule or regulation issued under Title I of said Act. 

ARTICLE VI-EFFECTIVE DATE 

This Supplemental Code shall become effective on the 10th day 

after its approval by. the Administrator. 

Approved Code No. 201-Supplement No. 14. 

Registry No. 286-02. 

1 Stayed-See paragraph 2 of order approving this Code. 

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