Approved Code No. 172-Amendment No. 1 Registry No. 230-07 

NATIONAL RECOVERY ADl\HNISTRATION 

AMEND1\1ENT TO 

C·ODE OF FAIR COMPETITION 

FOR THE 

RAYON AND SILK DYEING 

AND PRINTING INDUSTRY 

AS APPROVED ON JUNE 7, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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V 
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Approved Code No. 172-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RAYON AND SILK DYEING AND PRINTING 

INDUSTRY 

As Approved on June 7, 1934 

ORDER 

MomFICATION OF ConE OFF AIR COMPETITION FOR THE R AYON AND SILK 

DYEING AND PRINTING 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 June 16, 1933, for approval of a 1\1odification of a Code of Fair Competition for the Rayon and Silk Dyeing 

nnd Printing Industry, and hearings having been duly held thereon 

and the annexed report on said modification 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 modification and the Code as constituted after being modified comply 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 modification 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 modified. 

HUGH s. JOHNSON, 

Adrninistrator for Industrial, Recoverz;. 

Approval recommended : 

H. 0. l{ING, 

Division Administrator. 

WASHINGTON, D.C., 

Jwne 7, 193.i. 

65683°-657-36-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

the Code of Fair Competition for the Rayon and Silk Dyeing and 

Printing Industry, held in Room 3208 Commerce Building, Washington, D.C., March 15, 1934, (Postponed from February 27, due to 

code conferences). The Amendments, which are attached, were 

presented by duly qualified and authorized representafrves of the 

Industry in accordance with Article VII, Section 8 of the Code 

and in accordance with Administrative Order X-27. 

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 AMENDMENTS 

There are two amendments as follows: 

1. An Amendment providing for the posting of a printed schedule 

of all minimum wages, maximum working hours and working conditions as may be directed by the Code Authority. 

2. An Amendment whereby a number of unfair trade practices 

are added to the Code. These prohibit such practices as guaranteeing a customer against a market decline or a market advance; making 

false or misleading statements regarding grade, quality, or nature 

of any process in the industry; making false statements concerning 

a competitor; and other practices deemed undesirable in the industry. 

FINDINGS 

The Deputy Administrator in his 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 are 

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

National Industrial Recovery Act including the removal o:f 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 capacity of industries, by avoiding undue restriction of 

production ( except as may be temporarily required), by increa ing 

the consumption of industrial and agricultural products through 

(2) 
3 

increasing purchasing power, by reducing and relieving unemployment, by improving the standards 0£ labor, and by otherwise 

rehabilitating industry. 

(b) The Code as amended complies in all respects with the pertinent provisions 0£ said Title 0£ said Act, including without limitation 

Sub ection (a) 0£ Section 3, Subsection (a) 0£ Section 7, and 

Subsection (b) 0£ Section 10 thereof. 

( c) The Code Authority is empo11ered to apply £or and consent 

to these amendments. 

( 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 again t them. 

(£) Those engaged in other steps 0£ the economic process have not 

been deprived of the right to be heard prior to approval 0£ said 

amendments. 

For these reasons these amendments have been approved. 

Respectfully, 

JUNE 7, 1934. 

HUGH S. JOHNSON, 

Administrator. 
MODIFICATION OF CODE OF FAIR COl\fPETITION FOR 

THERAYON AND SILK DYEING AND PRINTING 

INDUSTRY 

Article V is hereby amended by the addition of a new ssction, 

number 7, as follows: 

"7. All concerns shall post conspicuously in each department of 

their plants, as may be directed by the Code Authority, a printed 

schedule of all minimum wages, maximum "TI"orking hours and 

working conditions as may be in force and effect at the time, together with a summary of all oth 0 r rules and stanrlards under this 

code and of all other schedules that may be in effect at the time; 

such notice shall also contain information as to how and where 

employees may r"'port violations," 

This Code of Fair Competition is hereby amended by the addition of a new Article, number XV, as follows: 

"ARTICLE XV-UNFAIR Tn.ADE PRACTICES 

"Fer all purposes of the Code the acts described in this Article 

shall constitute unfair practices. Any member of the Industry who 

shall directly or indirectly through any officer, employee, agent or 

representative, knowingly use, employ, or permit to be employed, 

any of such unfair practices shall be ~uilty of a violation of the Code. 

"1. No concern, its officers, stockholders, directors, emplo3 ees, 

agents, or servants, or any person for or on its behalf, or otherwise, 

shall suffer, pay, give, make, or authorize any rebates, preferences, 

allowances, refunds, discounts, gifts, drawbacks, concessions, deductions, or remissions, in or by any devise, agreement, subterfuge, 

form or manner whatever, directly or indirectly, from or against 

any stipulated . payment, charge, price, rate, or any amount or 

charge set forth in invoice, statement, or bill, or any price reported 

in accordance with the open price reporting plan authorized by 

Article VII, Sections 2 and 3, of this Code; provided, that fair and 

equitable allowances for damaged merchandise or unworkmanlike 

processing may be made in the manner provided in this Code. 

" 2. No concern shall obscure the prices at which services are sold 

by selling ostensibly at a certain price, but granting or allowing to 

the customer a discount. 

" 3. No concern shall withhold from or insert in the invoice, statements which make the invoice a false record wholly or in part, of the 

transaction represented on the face thereof, nor shall any concern 

predate an order or contract with the intent or effect of giv1ng either 

a member of the Industry or a customer any advantage or benefit 

which -would not accrue if such order or contract were correctly 

stated. 

" 4. No concern shall bill customers for less yardage or poundage 

than that actually processed for them. 

(4) 
5 

'' 5. No concern shall classify goods for billing purposes except 

in accordance with the true weight of the raw goods. The Code 

Authority may establish uniform weight classifications for the guidance of the Industry in the observance of this provision. 

" 6. No concern shall guarantee a customer against a market decline 

or a market advance. 

" 7. No concern shall make, cause or permit to be made or published, any false or misleading sttitcment concerning the grade, quality or nature of any process in the Industry or the results obtainable 

thereby. 

" 8. No concern shall make or cause to be made false or defamatory 

statements concerning a competitor, his business, prices, credit terms, 

values, policies, or products. 

" 9. No concern shall give, permit to be given, or directly off er to 

give, anything of value for the purpose of influencing or rewarding 

the action of any employee, agent, or representative of another in 

relation to the business of the employer of such employee, the principal of such agent or the represented party, respectively, without 

the knowledge of such employer, principal, or party, provided that 

nothing herein shall prohibit the free and general distribution of 

articles used solely for advertising. 

" 10. No concern shall allow customers' claims for damages to 

goods exceeding the amount of actual injuries thereto nor shall any 

concern allow customers' claims unless said clai.rns shall have been 

presented within twelve working days after shipment, except where 

the Code Authority shall, for good cause shown, determine otherwise; 

nor shall anv concern allow customers' claims for damages to goods 

after the same shall have been cut up. Following the establishment 

of the Central Adjustment Bureau in accordance with Section 4 of 

Article VII of the Code, no concern shall allow any claims, except 

through such Bureau. 

" 11. No concern shall engrave designs, copper rollers or screens 

or :furnish engraving or art service, patterns, designs, or advertising 

to customers, without making a reasonable charge (at least equal to 

cost) therefor. 

" 12. No concern shall redye, reprint, or reprocess goods for 

customers, without full charge, unless done to correct faulty workman~hip; provided that in the latter event, if goods are returned by 

customers to any concern after thirty days following the original 

delivery date of such goods, for redyeing, reprinting, or reprocessing, they shall not be redyed, reprinted, or reprocessed without the 

express approval of the Central Adjustment Bureau. 

" 13. No concern shall allow claims to customers for "excess 

shrinkaae ", or "shortages" on any inadequate or artificial basis of 

shrinkage, i.e., which does not allow for the normal shrinkage of 

such goods under proper processing. The Code Authority may 

establish tables of such normal shrinkage as a guide for determining 

the adequacy of shrinkage on typical cloths. 

" 14. No concern shall fail to report or falsely report any prices 

or terms actually quoted or made by it, as required by Section 3, 

Article VII of the Code. 

" 15. No concern shall copy the print or embossed design or pattern of another; the issuance to and possesion by anyone of a 
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3 1262 08482 8739 

United States Patent or of a registered certificate by the office or 

bureau approved by the Board of Trustees for the registration of 

designs, covering any design or pattern, shall be presumptive evidence of his ownership of such design or pattern. 

"16. To avoid unfair competition with finishers and processors 

of rayon and/ or other synthetic fibres not operating under this Code, 

it shall be an unfair practice for those engaged in finishing operations under this Code to pay less to operators of boiling off, dyeing, 

printing and finishing machinery in the dyeing, bleaching, printing, 

and finishing of fabrics, the warp of which is primarily rayon or other 

synthetic fibre, than their rates for such tasks prevailing on Sep- tember 1, 1933, unless the Administrator may otherwise permit. 

"17. Con~erns which are members of the Institute engaged in 

the processing of rayon and/ or synthetic fibres in the yarn, shall, as 

to such yarn processed be governed as to competitive practices by 

the Code of Fair Competition, approved or to be approved for the 

Textile Processing Industry. 

" 18. Any division in this Industry as defined by the Code Authority, having determined that an emergency exists in that branch 

of the Industry and that the cause thereof is destructive price-cutting 

so as to render ineffective or seriously endanger the maintenance of 

the provisions of this Code, may determine or cause to be deter- mined the lowest reasonable cost of processing the various cloths 

according to the quality of the work customarily done by concerns 

in that division and recorrunend the same for acceptance by the 

Code Authority. Such determination and recommendation, how- ever, shall not be effective unless concurred in by eighty per cent of 

the concerns present at any duly convened meeting of th at division 

and unless approved by any concern placed on a higher quality basis 

than others for processing the same type and construction of cloth. Such meeting shall be held in the City of Paterson, N.J. ( or the 

City of New York, N.Y.) of which five days written notice stating 

the purpose of such meeting shall be mailed by registered mail to 

each member of the Industry who shall have registered with the 

Code Authority under such division. At such meeting, concerns 

may vote by their duly authorjzed officers or by their duly authenticated proxies. The Code Authority shall accept or reject but not 

modify or amend such recommendation. "Such action by the Code Authority shall be subject to such 

notice and hearing as the Administrator may require and· the Administrator may approve, aisapprove or modify the same. Thereafter during the period of the emergency it shall be an unfair trade 

practice and in violation of this Code, for any member of the Industry to sell or offer any services, for which the lowest reasonable 

cost has been determined, at such price or upon such terms or con- ditions of sale th at the buyer will pay less therefor than the lowest 

reasonable cost of such services. 

""'\Vhen it appears that conditions have changed, the Code Authority upon its own initiative or upon the request of any interested 

pa;ty shall cause the determination to be r eviewed." 

Approved Code No. 172- Amendment No. 1. Registry No. 230---07. 

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