- - - - Approved Code No. 5l2 Registry No. 311-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITiON I 

FOR THE 

GRASS AND FIBRE RUG 

MANUFACTURING INDUSTRY 

AS APPROVED ON AUGUST 27, 1934 

WE DO OUR PARJ 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON : 1934 

For sale by the Sup .. rinte ndent of Docume nts, Washinuton. D.C. - - - - - - - - Price 5 cen ts 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, \ n hington, D.C., and by district offic of the Bureau ot 

Foreign and Domestic ommerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala.: ~7 Federal Building. 

Boston, Mas . : 1801 Cu tomhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber o! Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

ClcYeiand, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla. : Chamber of Commerce Building. 

Kansa City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South B1:oadway. 

Loui ville, Ky.: 403 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapoli , Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customllou e. 

New York, N.Y.: 734 Custornllou e. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Tru t Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Franci co, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 512 

CODE OF FAIR COMPETITION 

FOR THE 

GRASS AND FIBRE RUG MANUFACTURING 

INDUSTRY 

As Appr oved on August 27, 1934 

ORDER 

APPROVING CoDE OF FAIR CoMPETITION F OR THE GRAss AND Fnnm 

R G MANUFACT U RING 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 1G, 1933, for approval of a: Code of 

Fair Competition for the Gra s and Fibre Rug Manufacturing 

Industry, and hearing having ooen duly held thereon and the 

annexed report on said Code, 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 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 an 1 do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of aid Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved. 

HuGH S. JoHNSON, 

Ad1ninistrator for l ndustriril Recovery. 

Approval recommended : 

JosEPH :E'. B4TTLEY, 

Acting Divisidn Adn~inistra.tor. 

w A HINGTON D.C., 

A w.qust 27, 1934. 

82938°----1044- 126----34 (55) 
R.EP RT TO TH PRE I ENT 

The PRESIDENT, 

The White H owse. 

rn: Thi i 11 report n the approved C d of Fair Comp tition 

for the Gra · and Fibre Rug Manufa turing Indu try, th hearing 

n which wa ondu ted in Wa hington on De emb r 15 1 33, in 

accordance with the pr vi i n of the National In lu trial Re ery 

Act. 

The minimum wage · provid~d in thi ode ar thirty-two < n onehalf cents ( 32lj2¢) per hour for mal and f male with the pr lS!On 

that when fema.l,e · perform sub tantially the am work a. mal th y 

ar to receive the am rate of pay. No learner hall b paid le s 

than eighty per ent ( 80%) of the lowest wage for the t pe of w rk 

upon which he is engag d, and in no ca e lee::: than eio-ht l r ent 

(80%) of the codal minimum. No learner shall be paid l s than 

the minim'lm1. wage for a period of more than ·ix ( 6) w ek , and 

at no tiTI?-e sh-all the percentage of learners exceed five p rcent ( 5%) 

of the total n1J!Pber of employees. 

The maxim:rim hours provided in this cod are forty (40) hours 

per week or eight (8) hours per day, with the provi ion that during 

any one period of tllree (3) months in any alendar year employ es 

may be permitted to work not more than forty-eight ( 4 ) hours per 

week, and :for all time in excess of eight (8) hours per day and/or 

forty ( 40) hours per week employees shall be J?aid on a ba i of one 

and one-third their normal rate of compen atwn. 

No person under sixteen (16) years of age hall be e.mployed in 

this indu try, nor anyone under eighteen (18) y ar of age at op rations or occupations which are hazardous in natur or detrimental 

to health. 

No homework hall be permitted in this indu try cxcer tin a ordance with Executive Order of May 15, 1934. 

This industry was in former years quite extensive, nt lu to incr a ing importations of grass and fibre rugs from Jal an it has 

diminished until there are now only nine (9) oncern in the in lu try. 

This indn try compl'ises the manufacture of fabri pr ce sino· a1 d 

finishing into rugs. They are old in ompeti ion with th r fl r 

coverino· , and are e ·igned primarily £or mnm · u . Thi in u try has an aggregate invested apital f G 107 

an th ao-o-r gat annual ales i $1 457,000. Th ro lucti.on n p -

ity i '6,545,000. 

Th D 1 uty dministrator in hi final r port to m 

having found a. h r in et f rth and n f nll 

ing in thi matt r; 

I find that: 

(a) ail 

po es f Titl I 

i w ll de.sign to pr m t 

f theN ational In ln 

(5G) 

li i ., :1n 1 1 urA t in 'luling 
57 

removal of obstructions to the free flow of interstate and foreign 

conunerce whi h ten i to diminish the amount thereof and will provide for th o·eneraJ welfare by 1 r moting the organization of indu try for th purpo e of cooperative action among trade groups, 

by inducing an maintaining united action of labor and management 

under adequate go,·ernmental ancti n and upervision by eliminating unfair competitive practices, by promoting the fulle t possible 

utilization of the present productive capacity of industries, by 

a' oicling undu restriction of production (except a. may be tentporarily r quired) by increasing the con umption of industrial and 

agricultural product through increasing pur hasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said indu try normally employs not more than 50,000 empi yees; and is not classified by n1e as a major industry. 

(c) The code as approved complies in all respects with the pertinent provi ions of said Title of said Act, including without limitation Sub ection (a) of Section 3, ubsection (a) of Section 7, and 

Sub ection (b) of Section 10 thereof; and that the applicant association is an indu trial a ociatiqn truly representative of the aforesaid 

industry; and that sai 1 a sociation imposes no inequitable restrictions 

on admi sion to men1bership therein. 

(d) The code is not designed to and will not permit monopolies 

or monopolistic pra,ctices. 

(e) The code is not designed to and will not eliminate or oppr:ess 

sma.ll 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 

code. 

For these reasons this code has been approved. 

Respectful! y, 

AuGusT 27, 1934. 

HuGHS. JoHNsoN, 

Administrat01'. 
CODE OF FAIR 01\IPETITION F R THE AND 

FIBR R G l\I \. F T RIN I 

AnTI 'LE I- nP E 

To effe tun-t th I of the 

Re overy A t this od i tabli h l a · a od f 1 air omp ti- ti n for he Gra and Fibr Rug l\Ianufa turing Indu tr. and its 

prov1 ·wn hall be h tan ard f fair omp tition for uch industry and bin ing upon every member th r of. 

RTI 'LE II-DEFINITIO)l"' ~ 

ECTION 1. The term · Gra and Fibr Rug 1\Ianufa turing I!f- dn trv · u ed herein in lude the manrua ur for al of Gra 

ancljor Fibr woven fabric for rug and rna -ting. wh th r a a 

final proces or as a part of a larger or further proce . 

E TI N 2. The t rm ' memb r of the i11du try ' inclu l but 

without limitati n, any individual, partnership, a ociation orporation or other form of enterpri e engaged in the indu try, either 

a [l.ll employer or on his or its own behalf. SECTION_ 3. The term ' e1nployee' a u ed her in in lucles any and 

all per ons engaged in the indu try, ho e er comp nsated except 

a member of the indu try. 

ECTION 4. The term ' employer" as use l herein include anyone 

by whom such employee is compen ated or employed. 

E TI N 5. The term ' regular merchandi e ' a us d her in m ans 

all merchandise other than mill ·econ ls, drop , samples and 

remnants. 

SECTI N . The term " dr ps a use l herein means cli ~ ntinu . pattern. or weave of rug ~ alre ely m:::mufactured ancl in tock · 

and " e ond " a u ed h r in signifie n er handis whi ·h ontains 

defe t . 

E TI N 7. The t nn Act" and 'Admini trator" as u ed h rein 

m an r I tively Title I of th National In lu trial R overy \ct 

and the clmini. ·tr·ator for Indu trial Re ov r '· 

AnTI LE III-H ns 

( ) 
59 

any such case at least one and one-third the normal rate of compensation shall be paid for all time worked in excess of 8 hours in 

any one day and/ or 40 hour · in any one week. 

(b) The maximum hours e tablished herein shall not apply to 

outside salesmen nor to employees engaged in a managerial, supervisory or xecutive capacity who earn regularly $35.00 per week 

or more. 

(c) The maximlun hours establi hed herein shall not apply to 

r pa1r shop crews, electricians, engineers, shipping crews, who shall 

be p rmitted to work not more than 44 hours per week, except that 

during one period of 3 months in any calendar year they shall be 

permitted to work not more than 52 h urs per week, and for time 

in excess of 8 hours per day and/ or 40 hours per week they shall 

be paid on the basis one and one-third their normal rate of com- pen ation. 

(d) The maximum hours established herein shall not apply to 

office or clerical workers who are permitted to work not more than 

an average of 40 hours per week in each calendar quarterly p riod, 

provided, however, that no such employee shall be required or permitted to work more than 48 hours in any one week or 8 hours in 

any one day. 

(e) The maximum hours established herein shall not apply to 

watchmen and firemen who shall not be permitted to work more 

than 56 hours in any one week. 

SECTION 2. No employer shall knowingly permit any employee 

to work for any time which, when added to the time spent at work 

for another employer or employers exceeds the maximum permitted 

herein. 

SECTION 3. No employee shall be permitted to work more than 

6 days in any 7 day period. 

ARTICLE IV-WAGES 

SECTION 1. No employee shall be paid in any pay period less than 

at the rate of 32:lj2¢ per hour, except as otherwise herein provided. 

(a) F emale employees performing substa.ntially the same work 

as male employees shall receive the same rate of pay as male empl:oyees, and when they displace male employees they shall receive 

the same rates of pay as the men they displace. 

(b) A person whose earning capacity is limited because of age, physical or mental handicap, m.ay be employed on light or unskilled 

work, at a wage below the minimum established by this Code, if 

the employer obtains from the state authority, designated by the 

United States Department of Labor, a certificate authorizing such 

persons employment at such wages and £or such hours as shall 

be stated in the certificate. Such authority shall be guided by the 

in tructions of the United St_;:ttes Department of Labor in issuing 

certificates to such persons. Each employer shall file monthly with 

the Code Authority a list of all such persons employed by him, 

showing the wages paid to, and the maximun1 hours of work for 

such employee. 

SECTION 2. This Article establishes a minimum rate of pay which 

shall apply, irrespective of whether an employee is actually compensated on a time rate, piece-work performance or other basis. 
SE TIOK 3. Employee shall 

re iu c1; an 1 quitnbl 

~'ithin G la '. fr m th 

60 

AnTI 'LE ' - ENER L LAn n Pnon r Ns 

~ I•:CTION 1. hild Labo1·.-N p r on un ler lG y ar. f ag; hall 

be mploy .1 in thi · indu try· n r anvone und r 1 year of age at 

op -ration or oc ·npation whi h ar hazardous in natur r detrimental to health. Tl o 1 \uthority hall . ubmit to th \.. nlini trator a li t of u h perati ns or occupation . In an ~ tate an 

emplo. er hall be 1 med to have complied with thi pr vi ion as 

to f!O'e if h ·hall have on file a certifi ate or permit duly signed y 

th authority in u h State emp wered to i ue mployn1ent or age 

rtifi at or permit howing that the mployee i of th r quired 

ffill1-

rre 
61 

stringent r equirements as to age of employees, wages, hours of work, 

or as to afety, health, anitary or g neral workinO' conditions, or 

in urance, or fire protection, than are impo e l by this Code. 

EGTION 6. Posting Labor Pro isions.-All employers 1 all post 

and keep posted copies of the labor provision for this Code in onpi uous places accessible to all mplo:yees. Every m mber of the 

Indu try shall comply with all rule and regulation relative to the 

po ting of provisions of Codes of Fair Corrnpetition which may from 

time to time be prescribed by the Administrator. 

SE TI N 7. Hon Wo1·k.-No member of the industry ·hall employ an person or per ons to manufacture, in whole r in part, any 

product of the industry in the home, except in accordance with 

ExecutiYe Order, May 15, 1934. 

SE TION 8. Repo1·ting of T- iolations.-N o employe shall be dismiss d by reason of making a complaint or giving evidence with respect to an allQged violation of thi Code, or any other Code. 

ARTICLE VI-ADMINISTR.ATION 

ORGANIZATION AND CO.NSTIT TION 

SECTION 1. A Code Authority is hereby established to cooperate 

with the Administrator in the administration of this Code and shall 

con it of 5 members to be chosen by the industry, through a fair 

method of selection to be approved by the Administrator. 

SEcTION 2. In addition to memb£rship as above provided, there 

may be 3 members, without vote, to be known as Administration 

members, to be appointed by the Administrator to serve without 

compensation from the industry for such terms as he may specify. 

SECTION 3. Each trade or Industrial association directly or indirectly participating in the selection or activitiA of the Code 

Authority shall impose no inequitable restriction on membership, and 

shall ·ubmit to the Administrator for his approval true copies of its 

articles of association, by-laws, regulations and any an1endments 

when made thereto, together with such other information as to memberships, organization and activities as the Administrator may deem 

neces ary to eff ctuate the purposes of the Act. 

SE TION 4. In ord r that the Code Authority shall at all times be 

truly r epresentative of the industry and in other respects comply 

with the provisions of the Act, the Administrator may prescribe such 

hearings as he 1nay deem proper; and if he shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provi ion of the Act, may r equire an appropriate 

modification in the composition anl method of selection of the Code 

Authority. 

SE TION 5. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpo e. Nor 

shall any member of the Code Authority be liable in any manner to 

anyone for any act of any other n1ember, officer, agent or employee 

of the Code Authority. Nor shall any mem,ber of the Code Authority exercising reasonable diligence in the conduc+ of his duties hereunder be liable to anyone for any action or misc::ion to act under 

this Code, except for his own wilful malfea ance or nonfeasance. 
62 

SECTION 6. If the Admini trator hall at any time determine that 

any a tion f he ocl Authority r any ag ncy thereof may be 

unfair r unjn t or contrary to the publi intere t, the Admini trator n ay requir that uch n tion b u p n l d to afford an pporiuni y f r i Ye tiaation of the merit f su h action an further 

on ideration b. ~ u h od Authority or ag ncy pending final action 

whi h hall not be e:ffe ti unless the Admini trator approv ::; or 

unless h hall fail to eli appro e after thirty (30) day ' notice to 

him of int ntion to procee l ith u h action in its original or 

modi£. d form. 

P WER AND D TIE OF THE CODE AUTHORITY 

ECTION 7. ubject to u h rul and regulations as· may be i. sued 

by the Admini tl·ator, the ,ode Authority hall have the following 

further pow r an l duties in addition to tho e authorized by other 

provisions of thi ode. 

(a) To in ure the exe uti on of the pro vi ions of this o l and to 

pr Vl e for the compliance of the indu try with the provi ions of 

the Act.. . (b) To adopt b -laws and rules and regulations for ib pro eclure. 

(c) To obtain from member of the indu try uch information and 

reports as are r quired for the admini tration of the ode. In 

addition to information required to be ubmitted to the Code Author- ity members of the indu try shall furni h such stati tical information 

a the Administrator may deem nece ary for th purpo · r eit d 

in Section 3 (a) of the Act to such Federal and State agencies a he 

may designate · provided that nothing in this Code hall reliev any 

member of the Industry of any existing obligation to furni h report to any Government agency. No individua.l r port hall be 

di clo ed to any other member of the industry or any other party 

except to such ther Governmental agencies as ma be direct d by 

the Administrator. (d) To u ... e . u h trade as ociations and other ag n ies a it deem 

pro · r for the arr ino· out of any of its actiYities pr vi led for 

h Pin provided that nothin~ herein hall relieve the ode \..uthority 

of it duties or re ponsibilitles under this ode and that su h tra l 

a "'Ociations an l agencies hall at all tim be ubj ct to an compl 

·with the provisi ns hereof. 

E TION 8. It being found n ce · ary to support the a lm.ini trati n 

of thi · de in rder to :ffectuate th policy of the A t and to maintain the tandar of fair competition e tabli heel her under th od 

Authority i. authorized: 

(a) To incur uch r a onabl obliga ions a are n c sary and 

prop r for th for going urpos an 1 to m et u h olligati n ut 

of f1m ls -which hall b h ld in tru t f r the purpo e of th d 

an l rai d as h r inafterlrovi eel. 

(b) To su mit t the dmini trator f r his ar pro' al u j t o 

uch noti e an opportunity to be heard a. he may de m ne e ·~ ar 

(1) an itemize 1 budget of its imat xp ns for il f r o· i1 g 

purpo e , and (2) an equitabl ba is up n whi h th funds n ar 

to upport su h budg t shall b ntribute 1 b m n ber f ih ndu. try entitled to th benefit a ruinp; fr m them in nan of u h 

tandnrd , and the admini trati n tn reof. 
63 

(c) A:fter such budg t and ba i of a essment have been approved 

by the Admini trutor to d termine and collect equitable assessments a abo\e et forth and to that end if neces ·ary, to in titute 

legal pro eeding ... th refor in it own name. 

(d) Each member f th In lu try shall be liable for his or its 

equitable as e sm nt to th expense of the maintenance of the Code 

Authority, as her inabove prm ided. 

(e) Only member o the Inclu.,try om plying with the Code and 

contributing to the ex pen es of its administration us hereinabove 

provided, ( tmles duly exempted from makino· such contributions), 

shall be entitled to P?-rticipate in th . el ction of members of the 

Code Authority or to make u e of any emblem or insignia of the 

National Re overy Admini tration. 

(f) The Code Authority shall neither incur nor pay any obligation substantially in excess of the amount thereof as estimated in its 

approved budget, a.nd shall in no eYent exceed the total amount contained in the approved budget except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item 

for expenditure in ex e s of prior budget estimates except those 

which the Administrator shall have so approved. 

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

deemed advi able, including further fair trade practice provisions 

to govern member of the industry in their relations with each other 

or with other indu tries; measures for industrial planning, and stabilization of employment; and including modifications of this Code 

which shall become effective as a part hereof upon approval by the 

Administrator after uch notice and hearing as he may specify. 

(h) To appoint at Trade Practice Committes which shall meet 

with the Trade Practice Committees appointed under such othe"r 

code as may be related to the industry for the purpose of formulating fair trade practices to govern the relationships between employ ... 

ers under this Code and under such other Codes to the end that such 

fair trade practice may be proposed to· the Administrator as amendments to this Code and such oth-er Codes. 

(i) To provide facilities for arbitration, and subject to the approval of the Administrator, to prescribe rules of procedure and 

rules to effect compliance with awards and determinations. 

(j) The Code Auth rity Ehall make a study of conditions in the 

industry to determine the feasibility of the adoption of a shorter 

working week and ball, within 6 months after the effective data of 

this Code, make a report to the Administrator of its fin lings. The 

Code Authority ha1l al ·o submit to the Admini trator, within 6 

months after the effective elate of thi Code, a plan for the stabilization and regularization of employment. 

ARTICLE VII-OPEN PmcE FILING 

SECTION 1. Ea h memb r of the industry hall file with a confidential and eli intere t d agent of the Code Authority or, if none 

then with such an ag n lesignated by the Administrator, identified 

lists of all of his prices, eli counts, rebate , allowances, and all other 

term or condition · of sale, hereinafter in this Articls referred to as 

"price term ", which li t shall completely a:nd accurately conform 

to and represent the individual pricing practice of said member. 
64 

Su h lists shall contain the price term for all such standard products of the indu try a. are old or off red for sale by ·aid memb r 

an l for uch non- tan lard pro u t of aiel member a shall be 

d' ignat d by th od Authority. aiel ri e term shall in the 

fir. t in tance be fil d within 30 day after th date f appro al of 

tb1 provision. Price term and revised price term hall become 

effe tiv imm diately upon receipt th reof by aid acYent. Immediately upon receipt thereof, said agent shall by t legraph or other 

equally prompt mean notify said member of the time of uch 

re eipt. uch lists and r vi ion togeth r with the ff ctive time 

th.ere f, shall upon receipt be _immediately and simultaneou ly distnbuted to all m mbers of the Industry and to all of their customers 

who have npplie 1 therefor and hav offered to defray the co t actually incurred b the Cod Authority in the preparation and eli tribution thereof and be available for in pection by any of their cut mer at the office of uch agent. Said li t or r vi ions or any part 

thereof c::hall not be made available to any per on until released to 

all member of the industry and their cu tomers as afore aid provided, that I rices filed in the first instance shall not be released 

until the exr iration of the n.foresai l 30 day period after the approval 

of thi Code. The Code Authority shall maintain a permanent file 

of all price term filed as herein provided, and shall n t destroy 

any part of , nch records xcept upon written con ent of the Administrator. Ur on request the Code Authority shall furnish to the 

Admini trator or any duly de ignated agent of the Administrator 

copies of any such lists or revi ions of price terms. 

SECTION 2. When any member of the industry has filed any revision, such member shall not file a higher price within forty-eight 

( 48) hours. 

SECTION 3. No· member of the industry shall sell or offer to sell 

any products and/ or services of the industry, for which price terms 

have been filed pursuant to the provisions of this Article, except in 

accordance with such price terms. 

SECTION 4. No member of the industry shall enter into any agreement under tanding, combination or conspiracy to fix or maintain 

price terms, nor cause or attempt to can e any member of the indu -

try to change hi price terms by the us of intimidation, co rcion, 

or any other influence incon ·istent with the maintenance of the 

free and open market whi h it is the purpo e of this Article to 

create. 

ARTICLE VIII-CosTs AND PruOE CuTTING 

SEcTION 1. The standard of fair comp tition for the industry 

with reference to pricing practi e are declared to be a follow 

(a) "\Vilfully destru t1ve price uttino- i an unfair m thod of mpetition and is forbidden. Any m mb r o:f th inclnstr or of any 

oth r inclu try or the cu tomers of either may at any tim omplain 

to the Code Authority that any filed pric con. itute unfair c mp - tition a destru tive pri e uttin()' imp riling mall enterpri r 

tending toward monopol or tl e impairm nt of d wa . an 1 w rking condition . The ole uthori y hall within 5 la afford an 

opportunity to th m mber filing th pri to answ r u h mplaint 

and shall within 14 day make a ruling r a j u tment th r n. If 
65 

such ruling i · not concurred in by eith r party to the complaint, all 

paper hall be referred to th Re car h and Planning Division of 

NR which hall render a ·report and r omm n lation thereon to 

the Admini tra tor. 

(b) 1Vhen no declared mergency exi t a to any given product, 

there is to be no fixe l minimum ba is for pri e . It i intend c1 that 

sow1d co t estimating methods should be u e l and that consideration 

should be given to cots in the determination of pricing policies. (c) 1Vlien an emergency exists as to any given product, sale below 

the t..'lt d minimwn price of such product, in violation of Section 2 

hereof is forbidden. 

SECTION 2. E·rnerqency rro-visio·ns.-(a) If the Administi·ator, after 

inve tigation shall at any time find both ( 1) that an emergency has 

arisen within the industry adver ely affecting mall 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 clet~rmination of the. tated minimum price for a specified product within the indu try for a lllnited period is necessary to 

nlitigate the conditions constituting such emergency and to effectuale 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 stateti minimum price of the product 

affected by the emergency and thereupon the Administrator may 

proceed to determine such stated 1ninimum price. 

(b) 'When the Administrator shall haYe determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to 1nitigate the conditions of such 

emergency a11-d to effectuate the purposes of the National Industrial 

Act, he shall publish such price. Thereafter, during such stated 

period, no member of the industry shall sell ueh 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 

Admini trator may cause any determinations h ereunder to be reviewed or reconsidered and appropriate action taken. 

SECTION 3. ost Findinq.- 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 to 

the Administrator for review. If approved by the Administrator, 

full information concerning such mathods shall be made available 

to all member of the industry. Thereafter, each n1ember o£ the 

industry shall utilize such method to the extent foun l practicable. 

Nothing herein contained shall be construed to permit the Code 

Authority, any agent thereof, or any member of the industry to 

sugge t uniform conditions, percentages or differentials or other uniform items of co t which are designed to bring about arbitrary uniformity of costs or prices. 

ARTICLE IX-TRADE PRACTICE RuLES 

SECTION 1. T errns.-(a) No member of the Industry shall sell merchancE e on any but the following terms of payment: 

1. Cash, 4% 10 day , 60 days extra or 4% 60 days from end of 

month. 
66 

2. Anticipation to be all wed at th rate of 6% per annum. 

(b) No m mb r of the inclu. tr ·hall allow a eli ount of more 

than 15% X ra 011 dr01 or 20% OTI cond OV l' th maximum eli unt allowed n r gular mer hancli e, except b p cial 

permi. ion of the od Authority with th approval of th Administrator. 

SE TION 2. B1·ibes.-No member of the indu try hall giv 1 rmi.t 

to be o-iven or dire tly off r to give, an. thing of 'alu for th purpo e of infiuencin,?" or r warding th action of an 111I loye aaent 

or r pre entative of anoth r in r lation to the bu in of he mplo} er of uch mplo3 ee the principal of "'U h agent or th r preen ted 1 arty without th knowledge of uch mployer, I rincipal or 

party. Thi provi. ion hall not be con trued t prohibit fr and 

gen ral li t.ributi n of articl s commonly u ed for adv rti ing ex ept 

o far a uch article are actually used for commercial bribery as 

hereinabove defined. 

SE TION 3. ; eC"ret R eba.tes.-N o member of the indu try hall 

secretly off r t make any payment or allowance of a rebate refund 

commi sion, credit, unearned discount or excess allowance "hether 

in the form of money or otherwi nor shall a memb r of the indu -

try ecretly offer or extend to any customer any special ervice r 

privilege not extended to all customers of th same cla s for the 

purpose of influencing a sale. 

SECTION 4. Consiqnment.-N o member of the indu try hall ship 

goods on consignment except with the approval of the Code Authority where conditions in the indu try warrant such practi c. 

SECTION 5. R etttrns.-N o member of the inclu try shall a cept tho 

return of merchandise unless ju. tjfied. 

SECTION 6. M arldnq "Seconds ".-No member of the industry haJl 

fail to mark on " seconds ", both on ticket and bale , the word ' ·Mill 

Seconds." 

SECTION 7. Drop Sh1>p1nents.-N o member of the indu try hall 

make lrop shipments of regular merchandise to cu tom r dire t on 

order of jobber unles jobber has placed an initial order for not le 

than $1,000 net. 

SEcTION 8. No member of the Industry shall brand or mark or 

pack any goods in any manner which is intend d t or doe mi lead 

purchasers with respect to the brand, gra le quality quantit oriain. 

size, sub tance, character nature, finish, mat rial content, or preparation of . uch goods. 

SECTION 9. The piracy of styles or lesign by any m mber of the 

I ndustry is hereby sleclared to be unfair competition and a iolation 

of this Code. 

ARTICLE X-SALES OF " DROPS " 

SECTION 1. No memb r of the Indu. try shall ell as " dr p ' or 

" econds ' in any year an amount in ex e of o/c of h annual 

gross sales of reaular m rchandise in said ar x pt up n ap li ation to the Cod Authority etting forth th amount f icl m rchandi e to b old and the approval of the aid appli a ion by the 

Code Authority. 
67 

ARTI LE XI-REP RT ON s LE 

SECTION 1. Each member f the indu try 

Authorit · quarterly stat ments showing th 

value of re ·ular mer haudi e, drc1ps anLl 

quarter. 

hall ubmit to the Code 

total net ales in dollar 

nels for the preceding 

SE TION 2. Each n1ember of the In ln try hall ·ubmit to the Code 

Authorit within 30 day after Sept mber 1 t of each year the 

follow in o· informati n : 

(a) T tal ale by square yard · of price lino · for preceding :1. ·on. 

ARTICLE XII-~fODI.FICATION 

SE TIO 1. Thi · Code and all the p1·ovi ions thereof are expre ly 

made ubject to the right of the Pre ·idcnt, in accordance with the 

provi ions of sub ection b) of Section 10 of the Act, from time to 

time cancet or modify aD.J order approval, license rule or regulation 

is ued under aid Act. 

SECTION 2. Such of the provision of this Code a are not required 

to be included herein by the Ac;:t may, with the approval of the 

Admini trator, be nwdified O'l' elimipated in such manner as may be 

indicated hy the need. of the public, by changes in circumstances, 

or by experience. All the provision of this Code, unlBss so modified 

or eliminate-d, shall remain in effect until June 1G, 1935. 

ARTICLE XIII-1\foNoroLrEs, ETC. 

SECTIO::>r 1. No provisjon of thi Code hall 1 e so applied ~ to permit monopolies o·r monopolistic practices, or to eliminate, oppress or 

discriminate again t mall enterpri, es. 

A~TICLE XIV-PmcE IKCRE.lSES 

SEGTIO~ 1. \Vhere,a_ · the policy of the. Act to increase real purchasing power will be made more difficult of con mnmation if prices of 

good and service · increase as :rapidl'{ as wages, it is recogniz_ed that 

price increa es exc pt h as may be required to meet individual cost 

should be delayed, but when made such increases should, so far as 

poss1ble be limited to actual increase in the seller's costs. 

AP.TICLE XV-EFFECTIVE DATE 

Thi · Code shall become effective on the second Monday after its 

approval by the Administrator. 

Approved Code No. 512. 

Regi try No. 3311-1-01. 

0 
UNIVER SITY OF FLORIDA 

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