Approved Code No. 73-Amendmcnt No. 2 Registry No. 232-1-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

HAIR AND JUTE FELT 

INDUSTRY 

AS APPROVED ON JULY 22, 1934. 

WE DO OUR PAJtl'· 

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WASHINGTON: 1934 

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Approved Code No. 73-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HAIR AND JUTE FELT INDUSTRY 

As Approved on July 22, 1934 

ORDER 

XPPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE HAIR 

AND J U.rE FELT 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 an amendment to a Code of Fair Competition for the Hair and Jute Felt 

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 behal-f 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 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 of said Act, and do hereby order that s~id amendment be 

and it is hereby approved, and that the previous apl?roval of said 

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

entirety as amended. 

HUGH s. JOHNSON' 

.Administr(J),tor for Indtustrial Recovery. 

Approval recommended: 

• 

ROBERT L. HOUSTON' 

Divuion .Admini,strator. 

WASHINGTON, D.C., 

July 22, 1934. 

75716°-829-135-34 (1)' 
REPORT TO THE PRESIDENT 

The PRESID}'JNT, 

The White Ho'IJ)Se. 

Sm: The attached amendm,ent was submitted, on behalf of the 

Industry, by the National Control Committee for the Hair and Jute 

Felt Industry. 

The public hearing was conducted in Washington, D.C. on June 6, 

1934. Every person who requested an appearance was freely heard 

in accordance with statutory and regulatory requirements. 

RESUME OF AMENDMENTS 

Certain changes have been made in the Administration Article of 

the Code to bring the powers and duties of the Code Authority in 

line with more recently approved codes. A section has been added 

which will give the Code Authority power to assess the Industry for 

Code administration. 

The experience 0£ several months' operation und,er the Code has 

shown the necessity for the inclusion of additional fair trade practices and changes in others. 

FINDINGS 

The Deputy Administrator in his final report to me on said amendment 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 a.mendment 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 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 capacity of industries, by avoiding 

undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and 

relieving unemployment, by improving standards of labor, and by 

otherwi e rehabilitating industry. 

(b) The Code as amended complies in all respects with the pertinent provisions of said Title of said Act, includin? without limitation Sub-Section (a) of Section 3, Sub-Section ~a) of Section 7, 

and Sub-Section (b) of Section 10 thereof. 

(2) 
3 

( 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 designed 

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 mall 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, the amendment has been approved. 

Respectfully, 

JULY 22, 1934. 

HUGH 8. JOHNSON, 

Adrrlfinistrator. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

TI-IE HAIR AND JUTE FELT INDUSTRY 

There shall be added to Article II, the following Section: 

"(h) The term 'wholesaler, distributor, wholesale distributor or 

jobber of carpet linings and rug cushions' shall mean a person, firm, 

corporation, association, partnership or division thereof which by 

the nature of its operations is definitely organized to render a wholesale distribution service; buys and maintains at its place of business 

an adequate stock of carpet linings and rug cushions which through 

salesmen, advertising and/ or sales promotion devi.ces is sold to retailers and/ or institutional7 commercial, and/or industrial outlets 

and performs a credit funct10n." 

Section ( c) of Article, VI shall be deleted and the following provisions substituted therefor: 

" ( c) 1. It being found necessary in order to support the administration of this code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, 

the National Control Committee 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 and 

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 opportunity 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 Industry; 

" ( c) After such budget and basis of contribution have been 

approved by the Administrator, to determine and obtain equi. 

table contribution as above set forth by all members of the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. 

"2. Each member of the Industry shall pay his or its equitable 

contribution to the expenses of the maintenance of the National 

Control Committee, determined as hereinabove provided, and subject 

to rules and regulations pertaining thereto issued by the Administrator. Only members of the industry complying with the Code and 

contributing to the expenses of its administration as hereinabove provided, unless duly excepted from making such contribution, shall be 

entitled to participate in the selection of members of the National 

Control Committee 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. 

" 3. The National Control Committee shall neither incur nor pay 

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

approved budget, except upon aJ?proval 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 approved." 

(4) 
5 

Section ( d) of Article VI shall be deleted and the following provision substituted therefor : 

" ( d) Nothing contained in the By-Laws or Code of Fair Competition shall constitute the members of the National Control Committee partners for any purpose. Nor shall any member of the 

National Control Committee be liable in any manner to anyone for 

any act of any other member, officer, agent or employee of the 

National Control Committee. Nor shall any member of the National 

Control Committee exercising reasonable diligence in the conduct of 

his duties hereunder, be liable to anyone for any action or omission 

to act under the By-Laws or Code of Fair Competition, except for 

his own willful misfeasance or non-misfeasance." 

"(k) If the Administrator shall at any time determine that any 

action of the National Control Committee 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 further 

consideration by such National Control Committee or agency pending final action which shall not be effective unless the Administrator 

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." 

In Section ( c) Article VII, the word, "approval~, shall be 

deleted, substituting therefor:-" disapproval". 

Section (h) (2) and Section (h) (3) of Article VII shall be 

deleted and the following provision substituted therefor : 

"(h) (2) Discontinitecl Lines.-Any member of the Industry maY, 

offer in any calenda.r year a combined total of discontinued lines 

and/ or seconds of Carpet Linings and Rug Cushions up to one per- cent of his previous calendar year's dollar volume of sales at below 

cost or published prices, but must advise the Secretary of the National 

Control Committee forty-eight hours in advance, the nature, quantity 

and price of the merchandise thus offered. The Secretary will notify 

the members in the Industry." 

There shall be added to Article VII the following sections: 

"(j) OO'nsignments.-Consigning carpet linings or rug cushions to 

any customer. 

"(k) Classification of Oust01ners.-Misclas ifying a customer so as 

to enable said customer to obtain a more favorable price or terms of 

sale than that to which he is properly entitled. 

"(1) O0111,mercial Bribery.- Lending, giving, permitting to be 

given or loaned, or directly offering to loan or 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; nor shall such member permit such actions 

through or by his salesmen. This provision shall not be · construed 

to prohibit free and general distribution of articles comn1only used 

for advertising except so fa,r as such articles are actually used for 

commercial bribery a hereinabove defined." 

.Approved Code No. 73-Amcnclment No. 2. 

Regi try No. 232---1-03. 

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UNIVERSITY OF FLORIDA 

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