Approved Code No. 201-Supplement No.5 Registry No. 1625-59N 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE MILLINERY 

TRADE 

(A Division of the Wholesaling or Distributing Trade) 

AS APPROVED ON APRIL 16, 1934 

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o-= • ----

WE DO OUR FART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934. 

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Approved Code No. 201-Supplement No. 5 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE MILLINERY TRADE 

As Approved on April 16, 1934 

ORDER 

SuPPLEl\IENTAL CoDE OF F AIR CoMPETITION FOR THE vV HOLESALE 

MILLINERY TRADE 

A DIYISION OF THE WHOLES.'\LING OR DISTRillUTING 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 \Vhole ale Millinery Trade 

to the Code of Fair Competition for the \Vhole aling or Di tributing 

Trade, and hearings having been duly held thereon and the annexed 

report on said Code, containing findings with respect thereto, having 

been made and directed to the Pre ident: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority ve ted in me by Executi1 e Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwi e; do hereby incorporate by reference said annexed report and do find that said Supplemental Code complies in 

all respect 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 1t is hereby 

approved. 

HuGH S. JoHNSON, 

Adrninistrator for Industrial R ecovery. 

Appr val recommended : 

H. 0. KING, 

Divi ion Admini t1·ator. 

\YA ITLNGTON D.C., 

April16 19.Y4. 

53277 °----482- 02----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

of Fair Competition for the Wholesale Millinery Trade, conducted 

in Room 3208, Department of Commerce Building, on March 22, 1934. 

The Supplemental Code, which i attached, was presented by a duly 

qualified and authorized representative of the Trade, complying with 

the statutory requirement , said to represent 87 per cent in number 

and about 90 per cent in volume of sales of the Trade which could 

be included in this Supplemental Code. 

THE TRADE 

According to stati tics furni heel by member of the vVholesale 

Millinery Trade, there are approximately 95 establishments with 

aggregate annual sales of $32,000,000. The Trade employs about 

1,975 per ons. 

PROVISIONS OF THE CODE 

Since this Code is supplemental to the Code of Fair Competition 

for ~h.e vVhole aling or Distributing Trade, it contains no labor 

prOVISIOnS. 

The provision containing supplemental definitions are considered 

inclusive and accurate. The Admini trative provisions of this Supplemental Code estab- lish a Divisional Code Authority which is fairly and adequately 

representative of all the different elements in the Trade. 

The Trade Practice proposed do not appear to be in any way 

objectionable. The provision relating to the limitation of time in 

which to return damaged merchandise is designed to eliminate the 

most distressing evil in the Trade today. 

FINDINGS 

The Deputy Administrator in his final report to me on said Sup~ 

plemental Code having found as herein et 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 ren1oval 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 trade for the purpose of cooperative action 

among trade groups, by inducing and maintaining united action 

(2) 
3 

of labor and management under adequate governmental sanction 

and upervision, by eliminating unfair competitive practices, by 

promoting the fulle t po ible u e of the present produ tive capacity of industries, by avoiding undue re triction of production (except as may be temporarily required) by increa ing the con umption 

of indu trial and agricultural products throuah increasing purha ina p wer by reducina and relieving unemployment, by improYing tandard of labor: and by otherwise rehabilitating indu try. 

(b) Said Trade normally employ not more than 50,000 employee and it is not classified by me as a major indu try. 

(c) The Supplemental Code as approved complie in all respects 

with the pertinent provisions of said Title of aid Act, including 

without limitation Sub ection (a) of Section 3, Sub ection (a) of 

Section 7 and Subsection (b) of Section 10 thereof; and that the 

applicant a ociation is a trade a sociation truly representative of 

the afore aid Trade; and that aid association impo es no inequitable 

re trictions on admission to membership therein. 

(d) The Supplemental Code is not designed to and will not permit monopolies or monopoli tic practices. 

(e) The Supplemental Code is not de igned to and will not 

eliminate or oppre s small enterprises and will not operate to discriminate against them. 

(f) Tho e 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, 

HUGH s. JOHNSON' 

A dmfinistrator. 

APRIL 16, 1934. 
SUPPLEMENTAL CODE OF FAIR COMPETITION FOR 

THE vVHOLESALE MILLINERY TRADE 

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 

ARTICLE I-PURPOSES 

To further effectuate the policies of Title I of the National Industrial Recovery Act, the following provi ions are established as a 

Supplemental Code of Fair Competition for the Wholesale Millinery 

Trade to the Code of Fair Competition for the Whole aling or Distributing Trade, as provided by Articl VI, Section 1 (c) thereof, 

which shall be construed as a part of and in connection with the 

said Code £or the 'Vholesalincr or Distributing Trade, and both of 

the e Codes shall be binding upon every member of the Wholesale 

Millinery Trade.. 

ARTICLE II-DEFINITIONS 

S UPPLEJ.\IENTING ARTICLE II OF THE GENERAL CODE 

lVholesaler OJ' Di ·tributor.-The term "'Vholesaler" or "Distributor", as used herein, is defined to mean any individual, partnership, association, corporation, or other firm, or a definitely 

organized division thereof, definitely organized to render, and rendering a general distribution ervice, which buys and maintains at 

his or its place of bu iness, a stock of ladies', misses', and children's 

trimmed and untrimm.ed hats, and incidental merchandise pertaining 

thereto which it di tributes; and which through salesmen, ad vert ising, and/ or sales promotion device , sells to retailers, but which does 

not sell in significant amounts to ultimate consumers. 

The T1·ade.-The term " the Trade ", as used herein, is defined to 

mean the business in which "\Vholesalers" or "Distributors", as 

above defined are engaged. 

Divisional Code Authority.-The term " Divisional Code Authority ", as u ed herein, is defined to mean the Divisional Code 

Authority for the Wholesale Millinery Trade, a division of the 

Wholesaling or Di tributing Trade. 

General C ode.-The term " General Code ", as used herein, is defined to mean the Code of Fair Competition for the Wholesaling or 

Distributing Trade. 

ARTICLE III-ADMINISTRATION 

SUPPLEMENTING ARTICLE VI, SECTION 2 (E), OF THE GENERAL CODE 

SECTION I. Divisional Code Authority.-

( a) There shall be created a Divisional Code Authority to cooperate with the Admini. trator in the administration of the provisions 

of this Supplemental Code. 

(4) 
5 

(b) Such Divisional Code Authority shall be composed o£ seven 

(7) members, six of whom shall be members of the Associated 

Wholsesale Distributors of Ladies' and Children's Hats, Inc., and 

selected by the Board of Directors thereof; subject to ratification 

by the members of that Association who have signed a letter of 

Compliance and Assent to this Supplemental Code and the General 

Code, and further selected with due regard for their r e idence in 

the major markets of the Trade and one (1) member shall be selected in a manner to be approved by the Administrator to represent 

those engaged in the Trade who are not members of the Associated 

Wholesale Distributors of Ladies', Misses', and Children's Hats, 

Incorporated. 

SEcTION II. Powers and Duties.-The Divisional Code Authority 

shall have the following powers in addition to those provided in the 

General Code. 

(a) To organize, elect officers, hire employees, and perform such 

other acts as may be necessary for the proper administration of this 

Supplemental Code. 

(b) 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. 

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

the Trade Practice Committees appointed under such other codes 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 relationships 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. 

(d) The successor to any member of the Divisional Code Authority 

shall be nominated and elected in accordance with a plan devised 

by the Divisional Code Authority, subject to the approval of the 

Administrator. 

SECTION III. Liability of the 0 ode A uthority.-N othing contained 

in this Supplemental Code shall constitute the members of the 

Divisional Code Authority 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 Divi ional Code Authority, exercising reasonable diligence 

in the conduct of his duties hereunder, be liable to anyone for any 

action or omi. sion of any act under this Supplemental code, exc pt 

for his own misfeasance, or nonfea ance. 

SECTION IV. Approval or Disapproval by the AdministTatm'.-

If the Admini trator hall determine that any action of the Divisional Code Authority or any agent thereof may be unfair or 

unjust or contrary to the public intere t, the Administrator may 

require that such action be su pended to afford an opportunity for 
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3 1262 08728 5564 

investigation of the merits of ~uch action and further consideration 

by such Divisional Code Authority or agency pending final action 

which shall not be effective unless the Administrator approves or 

unless he shall fail to disapprove after thirty days' notice to him 

of intention to proceed with such action in its original or modified 

form. 

ARTICLE IV-TRADE PRACTICES 

SUPPLEMENTING ARTICLE VII OF THE GEXER.AL CODE 

SECTION 1. T ernu; and disco·unts.-The maximum terms of cash 

discount hall be seven (7) per cent, 10 days, e.o.m., and payment 

may be anticipated at the rate of six (6) per cent per annum, or 

the legal rate governing the contract whichever is lower. Cash sales 

shall be governed by the above provi ·ions. 

SECTION II. Return of m,erohandise.-:Merchandise purchased and 

shipped in good faith and in accordance with the buyers specifications may not be returned for credit by any purchaser; provided, 

however, that where good are received in an apparent damaged 

or imperfect condition or when they do not conform_ to the pecifications contained in the purcha e order, a maximum of three ( 3) successive business days after the receipt of such merchandise will be 

allowed for the return of same for credit, but provided further that 

this section shall have no application to the return of merchandise 

in which the defective conditions cannot be discovered by an ordinary inspection. Whenever a member of the Trade shall accept the 

return of merchandise after it has been in the customer's possession 

for more than the said three (3) day period, he shall report such 

transaction to the Divisional Code Authority and certify that his 

action was in accordance with this provision. The Divisional Code 

Authority may require any member of the Trade to present proof 

that such returns were accepted in good faith and in accordance with 

the provisions herein. 

SECTION III. 0 onsignment of M erchandise.-N o merchandise shall 

be shipped on a consignment basis. 

SECTION IV. Subterfuge.-It shall be an unfair trade practice for 

any member of the Trade to employ subterfuge, directly or indirectly, to avoid or attempt to avoid the provisions of this Supplemental Code or the purposes and intent of the National Industrial 

Recovery Act, which are to increase employment, provide better 

wages, promote fair competitive methods, better business conditions, 

and promote the public welfare. 

ARTICLE V-EFFECTIVE DATE 

This Supplemental Code shall become effective on the tenth day 

after its approval by the Administrator. 

Approved Code. No. 201-Supplement No. 5. 

Registry No. 1625-5!)N. 

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