Approved Code No. 48-Amendment No.1 Registry No. 263-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO I 

CODE OF FAIR COMPETIT ON 

FOR THE .. 

SILK TEXTILE INDU~TRY 

AS APPROVED ON JULY 17, 1934 

WI DO OUR PARt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 48-Amendment No. t 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

As Approved on July 17, 1934 

ORDER 

APPROVING AMENDMENT OF ConE oF FAIR CoMPETITION FOR THE SILK 

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 J,une 16, 1933, for approval of an amendment 

to a Code of Fair Competition for the Silk 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, i, Hugh S. Johnson, Administrator fot Industrial Recovery, 

pursuant to authority vested in me by Executive Order No. 6543-A, 

dated December 30, 1933, and otherwise; do hereby incorporate, by 

reference, said annexed report and do 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 I of said Act, and do hereby order that said 

amendment be and it is hereby approved, and that the previous 

approval of said Code is hereby modified to include an approval of 

said Code in its entirety as amended; provided that Article I, Section 

5, as amended, be stayed in so far as it affects winders, warpers, 

coppers and quillers until such date as the Code of Fair Competition 

for the Textile Processing Industry shall contain a similar provision, 

subject to my further order; and provided further that Article VI, 

Section 4 (C) shall read as follows : 

"(C) No employer failing to pay assessments as above required, 

unless duly excepted from paying such assessment, shall participate 

in the selection of the Members of the Code Authority or receive 

the benefits of its voluntary aqtivities or make any use of any N.R.A. 

insignia." 

HuGHS. JoHNSoN, 

Administrator for Industrial Recovery. 

Approval recommended : 

RoBERT L. HousTON, 

Division Administrator. 

WAsHINGTON, D.C., 

July 17, 1934. 

74228°----829-86----34 (1) 

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REPORT TO THE PRESIDENT 

• The PRESIDENT, 

The lV hite Howse. 

Srn: This is a report on the Hearing covering the Amendments to 

the Code of Fair Competition for the Silk Textile Industry, held 

in Room A at the Washington Hotel, Washington, D.C., April 18, 

1934. The Amendments, which are attached, were presented by 

duly qualified and authorized representatives of the Industry, complying with statutory requirements and being the Code Authority 

for the Silk Textile Industry. 

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. 

PROVISIONS OF THE A~IENDMENTS 

There are 16 Amendments as follows: 

1. An Amenrunent providing for a change in the definition of 

productive machinery. 

2. An Amendment defining the term "Outside Crews." 

3. An Amendment providing for an increase in the number of 

members o.f the Code Authority. 

4. An Amendment providing for the collection of assessments 

from members of the Industry. 

5. An Amendment providing for the establishment of a committee 

to act on a joint committee w1th representatives of any other Code 

Authority of a related industry. 

6. An Amendment providing for the submission to the Code 

Authority of reports and other statistical information required. 

7. An Amendment providing for the establishment of an accounting system or method of cost finding and the determining of the 

lowest reasonable cost of any product when an emergency exists in 

the Industry. 

8. An Amendment regarding goods shipped on memorandum. 

9. An Amendment regarding the allowances permitted on returned goods. 

10. An amendment providing for the use of confirmatory signed 

contracts. 

11. An Amendment regarding the established terms for employers 

engaged in the selling of Broad Goods, Hat Bands, Special Fabrics, 

Ribbons and Tie Fabrics. 

12. An Amendment regarding false advertising. 

13. An Amendment providing for the registration and installation 

o.f productive machinery. 

14. An Amendment regarding the terms of sale of Tie Fabrics. 

(2) 
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15. An Amendment regarding the terms of sale on thrown yarns. 

16. An Amendment regarding terms of sale on linings to retail 

and wholesale furriers. 

FINDINGS 

The Deputy Administrator in hi,s final report to me on said 

amendments to said Code having found as herein set forth and on 

the basis of all the proceedings in this matter: 

I find that: 

(a) The amendments to said Code and the Code as amended a~e 

well designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act including the removal of obstruc· 

tions 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 utili£:ation of the 

present productive capacity of industries, by avoiding undue restriction of production (except as may be t€mporarily required), by 

increasing the consumption of industrial and agricultural products 

through increasing purchasing power, ~y 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 Soction 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof. 

(c) The Code en1powers the Code Authority to present the afore· 

said Amendments on behalf...of the Industry as a whole. 

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

and will not permit monopolies or monopolistic practices. 

(e) The amendments 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 said 

amendments. 

For these reasons these amendments have been approved. 

Respectfully, 

JULY 17, 1934. 

HuGH S. JoHNsoN, 

Administrator. 
MODIFICATION OF CODE OF FAIR COMPETITION FOR 

THE SILK TEXTILE INDUSTRY 

Article I, Section 5, is hereby amended to read as follows : 

5. The term "productive machinery" as used herein means all 

looms, winders, warpers, coppers, or quillers, dressing frames for 

the spun silk industry, spooling, coning, balling, tubing and skeining for the sewing thread and floss industry.1 

Article III is hereby amended by adding a new section, number 

6, to read as follows : 

6. "Outside Crews" is understood to mean yard-men, gate-men 

and men doing work on mill premises in the capacity of laborers. 

This classification shall not include truck drivers. The hours for 

outside crews. shall be limited to forty ( 40) hours per week, with 

a tolerance of 10%. Overtime above forty (40) hours shall be 

paid at the rate of time and one-third. Any emergency time in 

any establishment shall be reported monthly through the National 

Federation of Textiles, Inc., to the Code Authority on the forms 

prescribed by it. 

Article VI, Section 1, is hereby amended to read as follows: 

1. To effectuate further the policies of the Act, a General Planning Committee, to be known as the Code Authority, is hereby 

designated to cooperate with the Administrator as a Planning and 

Fair Practice Agency for the Industry. The Code Authority shall 

consist of fifteen representatives of the Industry (or such other 

number as may be subsequently recommep.ded by the Code Authority 

and approved by the Administrator), elected by the members of the 

Association and such other employers as bear their proportionate 

cost of the administration of this Code. This Code Authority shall 

be chosen by a fair method of selection, approved by the Administrator, and shall .have in addition not more than three members without 

vote appointed by'the Administrator. Such agency may from time 

to time present to the Administrator recommendations, based on 

conditions in the Industry as they may develop, which will tend to 

effectuate the operations of the provisions of this Code and the 

policy of the Act. Such recommendations, when approved by the 

Administrator, shall have the same force and effect as any other 

provisions of this Code. 

Article VI, Section 4, is hereby amended to read as follows: 

4. (A) In order to effectuate the policy of the Act and to maintain the standards of fair competition established hereunder, the 

Code Authority is authorized: 

( 1) To incur such reasonable obligations out of funds which shall 

be held in trust for the purposes of the Code and raised as hereinafter provided; 

1 See paragraph 2 of order approving this Amendment. 

(4) 
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(2) To submit to the Administrator for his approval, subject to 

such notice and opportunity to be heard as he may deem necessary; 

(a) An itemized budget of its estimated expenses for the foregoing 

purpose, and together with an itemized account of disbursements 

to date, covering the formulation and administration of the Code. 

(b) Upon approval of such budget and disbursements the Code 

Authority is authorized, subject to the approval of the Administra· 

tion, to collect from each employer an assessment based on the percentage of the net volume of business done by each such employer 

during such annual or semi-annual period as it may determine and 

during the operation of this Code to make such further assessments 

or reductions in assessments as may be found necessary upon approval by the Administrator. 

( 3) To institute legal proceedings to collect such assessments in 

its own name or in such name as may be necessary to comply with 

the practice of the court in which such proceedings are instituted. 

(B) Each employer shall pay such assessments as hereinabove 

provided. 

(C) No employer failing to pay assessments as above required 

shall participate in the selection of the Members of the Code Authority or receive the benefits of its voluntary activities or make 

any use of any N. R. A. insignia. 2 

Article VI is hereby amended by the addition of a new section, 

number 5, to read as follows: 

5. It shall be the duty of the Code Authority for this Industry 

to designate representatives to act on a joint committee with representatives of any other Code Authority of a related industry, having 

reciprocal provisions in its Code of Fair Competition to consider 

questions regarded by either Code Authority as of common concern 

with reference to the effectuation of the policies of the Act including 

questions as to whether the operation of a given concern comeg 

within the jurisdiction of one or more of the respective Codes of Fair 

Competition and to take such action as they may jointly agree to 

be appropriate subject to the approval of the Administrator. 

Article VII is hereby amended to read as follows : 

To obtain from members of the Industry such information and 

reports as are required for the administration of the Code. In 

addition to information required to be submitted to the Code Authority, members of the Industry subject to this Code shall furnish such 

statistical information as the Administrator may deem necessary for 

the purpose recited in Section 3 (a) of the Act to such Federal 

and State agencies as he may designate; provided that nothing in 

this Code shall relieve any member of the Industry of any existing 

obligations to furnish reports to arty 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 Administrator. 

Each employer shall afford to an impartial agency approved by the 

Code Authority and such employer access to the books, records and 

contracts relative to compliance with the terms of this Code to the 

extent permitted by the Act and such rules and regulations as may be 

approved by the Code Authority. 

• See paragraph 2 of order approving this Amendment. 
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Article VIII, Section 2, is hereby amended to read as follows : 

SEcTioN 2 (a). The standards of fair competition for the Industry with reference to pricing practices are declared to be as follows : 

(1) Wilfully 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 filed 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 5 days 

afford · an opportunity to the member filing the price to answer such 

complaint and shall within 14' 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 Administrator. 

(2) 'iVhen 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. 

( 3) 'iVhen an emergency exists as to any given product, sale 

below the ,stated minimum price of such product, in violation. of 

Section 2 (b) hereof, is forbidden. 

SECTION 2(b). E~rgeney Provisions.-

(!) If the Administrator, after investigation shall at any time 

find both (1) that an emergency has arisen within 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 agency to investigate costs .and to recommend to the Administrator a determination 

of the stated minimum price of the product affected by the emergency and thereupon the Administrator may proceed to determine 

such stated minimum price. 

(2) When the Administrator 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 purpose of the National Industrial Recovery Act, he 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 deemed destructive price cutting. From 

time to time, the Code Authority may recommend review or reconsideration or the Administrator may cause any determinations hereunder to be reviewed or reconsidered and appropriate action taken. 

SECTION 2(c). Oost Finding.-The Code Authority shall cause to 

be formulated methods of cost finding and accounting capable of 

use by all members of the Industry, and shall submit such methods 
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to the Administrator for review. If approved by the Administrator, 

full information concerning such methods shall be made available 

to all members of the Industry. Thereafter, each member of the 

Industry shall utilize such methods to the extent found practicable. 

Nothing herein contained shall be construed to permit the Code 

Authonty, 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. 

Article VIII, Section 3, is hereby amended to read as follows : 

3. 'Vhere goods are shipped on memorandum, every person engaged in the Industry shall bill them as of the date of shipment, 

unless the goods are returned within ten days after their receipt. 

Article VIII, Section 4, is hereby amended to read as follows : 

4. All allowances of claims or returns of goods shall conform to 

the provisions of this section, except as otherwise expressly provided by Article XI in respect to any specific branch of the Industry. 

No allowances on or returns of finished goods shall be permitted 

by any employer unless the claim has been made in writing within 

ten days after receipt thereof, provided, however, that claims based 

on defects not discernible by reasonable inspection at tin1e of delivery 

shall be made immediately on discovery, but, in no event, more than 

60 days after receipt. 

No allowances shall be made after such goods have been cut. 

Article VIII, Section 6, is hereby amended to read as follows : 

6. Every employer shall require confirmatory signed contracts, in 

the form prescribed by the Code Authority, with the approval of 

the Administrator, for all sales and processing transactions, except 

in the case of spun silk, sewing silk and thrown silk transactions, 

where such contracts shall be required only for transactions in excess 

of $300.00. In any case which requires that goods must be shipped 

prior to the receipt of a confinnatory signed contract, persons engaged in the Industry must, on shipment of such merchandise, mail 

to the main office of the purchaser, a notice in the form: 

NOTICE TO BE MAILED WITH INVOICE FOR ALL GOODS WHERE NO CONTRACT 

HAS BEEN SIGNED PRIOR TO SHIPMENT 

These goods are shipped subject to the Code of Fair Competition of the Silk 

Textile Industry, and they are delivered to you in response to your telegraptlic, 

telephonic, or mail order, subject to the terms and conditions prescribed in the 

Uniform Sales Contract, a copy of which is printed on the back of this notice. 

If you do not agree to abide by these conditions do not accept these goods, as 

your acceptance and retention for a period of twenty-four hours is an agreement on your part to be bound by the terms of the Uniform Sales Contract. 

Article VIII is hereby amended by adding a new section, number 

8, to read as follows : 

8. Every employer engaged in selling Broad Goods, Hat Bands, 

Special Fabrics, Ribbons and Tie Fabrics shall observe the following shipment terms: 

(a) All shipments of dyed and finished merchandise shall be 

f.o.b. point of shipment except that deliveries in the City of New 

York may be free of charges for trucking, freight or express. On 

deliveries from sales offices and stock rooms outside of New York 

City, standard :freight charges from the mill to sales office and stock 

room, shall be added to the invoice. 
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(b) All shipments of Raw Goods shall be shipped f.o.b. mill. 

All reference to shipping points contained in the terms of the 

various divisions shall be deleted. 

Article VIII is hereby amended by the addition of a new section, 

number 9, to read as follows: 

9. No employer shall use advertising, whether printed, radio or 

display, or of any other kind, and/ or labeling and/ or selling methods, which tend to deceive or mislead the purchaser or consumer. 

The Code Authority may, subject to the approval of the Administrator, issue definitions and standards for accurate advertising 

and labeling of the various products of the Industry, which upon 

approval of the Administrator, shall be used by all mnployers. 

Article VIII is hereby amended by the addition of a new section, 

number 10, to read as follows: 

10. Every employer shall register with the Code Authority on 

its request, an inventory of his productive machinery in operation~ 

]n place, in storage, or under contract, in such form as to detail and 

certification as may be required by said Committee. 

Two weeks after the effective date of this amendment, no employer now engaged in the Industry shall install or operate any 

productive machinery not operated in the Industry, or in operating 

condition at that time, except for the replacement of productive 

machinery of substantially the same capacity, without first securing from the Administrator a certificate that such installation will 

be consistent with effectuating the policy of the Industrial Recovery Act, and no application shall be made or granted for any such 

certificate without first submitting it to the Code Authority for its 

recommendation. 

Nothing contained in this paragraph shall be construed to prevent 

the sale of existing machinery heretofore in operation by one employer to another, all such sales to be reported to the Code Authority. 

Article XI, Tie Fabrics, is hereby amended to read as follows: 

TIE FABRICS 

6j 1Qj 60 e.o.m. on all goods sold to the men's neckwear trade. 

Anticipation at the rate of 6% per annum. Interest shall be paid 

on deferred deliveries at the rate of 6% per annum. Not more than 

si»ty days shall elapse between delivery of samples and delivery of 

merchandise. No order for sample lengths shall be taken nor sample 

lengths delivered or loaned without orders for goods for later delivery. No extra dating shall be given on samples. No member of the 

'l'ie silk Industry shall ship merchandise on consignment or memorandum except to his duly accredited agent. 

Article XI, Thrown Yarns, is hereby amended to read as follows : 

THROWN YARNS 

All transactions between buyer and seller shall be confirmed by 

s~gned contracts and subject to the following terms, only on thrown 

s1lk yarns and combination yarns containing silk; To Hosiery Manufacturers, 1/ 10 e.o.m., net 60 days' trade acceptance from date of 

shipment; to W~avers, 10 days, 1% net 60 days' trade acceptance 
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from date of shipment. Interest shall be paid on deferred deliveries 

at the rate of 6% per annum. 

The terms of sale on dyed andjor converted andjor novelty twist 

yarns made of rayon and/or other synthetic fibres shall be those 

provided in the Code of Fair Competition for the Textile Processing 

Industry. 

Article XI is hereby amended by the addition of a new provision 

to read as follows : 

LININGS TO FURRIERS 

Shipments to retail furriers in February, March, April, ]\fay, June 

and July shall bear m~v-~imum terms of either 6/ 10 October 1st or 5/ 10 

November 1st. No optional terms to be given. Goods· shipped in 

August and September shall bear maximum term.s of 6/ 10 December 

1st. Goods shipped in October, November, December and January 

shall bear maximum terms of 6/10/ 60. 

Shipments to wholesale furriers or fur coat lining jobbers in February, March, April, 1\-fay, June, July, August and September shall 

bear maximum terms of 6/10/ 4 months. Goods shipped in October.1 

November, December and January shall bear maximum terms ot 

6/10/60. 

E.o.m. terms may be given on above shipments to wholesalers or 

fur coat lining jobbers. 

Shipments on memorandum, which are subsequently invoiced 

regularly, shall be billed as of the date of shipment on memorandum. 

No tender of return shall be accepted after thirty days of receipt of 

merchandise. No anticipation is to be allowed that will bring the 

total discount above 8 per cent. 

Terms and dating must appear on all invoices. 

Approved Code No. 48--Amendment No. 1. 

Registry No. 263-----01. 

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UNIVERSITY OF FLORIDA 

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