Approved Code No. 3-Amendment No. 1 Registry No. 286-04 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

WOOL TEXTILE INDUSTRY 

AS APPROVED ON JANUARY 23, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. • • • • - - - - Price 5 cents 

V 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., an<! by district offices of the Bureau of Foreign 

and Domestic Cornmerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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

Charleston, S.C. : Chamber of Commerce Building. 

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

Cleveland, 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. 

Kansas City, Mo. : 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y. : 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis. Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, W.ash.: 809 Federal Office Building. 
Approved Code No. 3-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COlVIPETITION 

FOR THE 

WO·OL TEXTILE INDUSTRY 

As Approved on January 23, 1934 

ORDER 

APPROVING AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

WOOL TEXTILE INDUSTRY 

An application having been duly made fursuant to and in full 

compliance with the provisions o:f Title I o the National Industrial 

Recovery Act, approved June 16, 1933, -:for approval o:f amendments 

to a Code o:f Fair Competition :for the "\Vool Textile Industry, and 

hearings having been duly held thereon and the annexed report on 

said amendments, containing findings with respect thereto, having 

been made and directed to the President: 

NOW, TI-IEREFORE, on behalf o:f the President of the United 

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

pursua11t to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, elated December 

30, 1933, and otherwise; do hereby incorporate, by reference, said 

annexed report and do find that said amendments and the Code as 

constituted after being amended comply in all respects with the 

pertinent provisions and will promote the policy and purposes o:f 

said Title o:f said Act, and do hereby order that said amendments be, 

and they are hereby, approved, and that the previous approval o:f said 

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

entirety as amended, 

Provided, however, that the Administrator may appoint a representative or representatives upon each o:f the Sub-Code Authorities 

created under Article XII o:f said amendments, and 

Provided, :further, that i:f the Administrator shall determine that 

any action of a Code Authority or any agency thereof is un:fair or 

35070°-313-115-34 (1) 

• 
2 

unjust or contrary to the public interest, the Administrator may require that such action be suspended for a period of not to exceed 

thirty (30) days to afford an opportunity for investigation of the 

merits of such action and further consideration by such Code 

Authority or agency pending final action, which shall be taken only 

upon approval by the Administrator. 

These amendments shall become effective ten (10) days after date 

hereof. 

Approval recommended: 

A. 1). WHITESIDE, 

HUGH s. JOHNSON' 

Adminutrator for Industrial R ecovery. 

Divuion Admini-Strator. 

WASHINGTON, D.C., 

Jamuary 23, 1934. 
THE PRESIDENT' 

The lV hite House. 

INTRODUCTION 

Srn : This is a report ort the H earing of the Amendments to the 

Code of Fair Competition for the "'\Vool Textile Industry. The hearing was held in the Carlton Hotel, Washington, D.C., 

on December 8, 1933. 

The Amendments were presented by duly qualified and authorized representatives of the above industry, complying with the statutory requirements, as represented by fully 80 percent of the wool 

textile machinery including both looms and spindles. 

RESUME OF Al\IENDMENTS 

The amendments proposed may be classified into four parts: 

I. CHANGES TO BE MADE IN THE ORIGIN AL CODE 

The definition in the original code is amended to make the code 

all inclusive of the various divisions of the wool textile industry. 

The original code contained no method of assessing employer 

for any of the expenses. Consequently, a provision is proposed so 

that employers may be assessed within the limits allowed by the 

Recovery Act. 

A provision limiting the hours of office employees is proposed 

by changing the original Article III. 

II. ADMINISTRATION 

In the Executive Order dated July 26, there appeared a condition 

as follows: 

"(1) To effectuate further the policies of the Act, a "'\Vool Textile 

Industry Committee be cre.ated to cooperate with the Administrator as a Planning and Fair Practice agency for the Wool Textile 

Industry, which Committee shall consist of five representatives of 

the ,v ool Textile Industry elected by a fair method of selection, 

to be approved by the Administrator, and three members without 

vote appointed by the Administrator." 

T,he amendments attached hereto contain administrative provisions allowing the various subdivisions of the wool textile industry 

to operate in the most convenient and constructive manner. 

All divisions of the wool textile industry are included in this code 

but it is recognized that the problems of some of the branches of the 

industry are not comparable with the problems of other branches. 

Consequently, subcode authorities have been created to care for the 

individual problems of each of the well-defined branches of the 

industry. 

III. FAIR TRADE PRACTICES 

The amendments propose several fair trade practices which are 

applicable to all of the divisions of the industry. At a later date 

the subcode authorities will propose fair trade practices which shall 

apply only to their division. 

(3) 
4 

IY. AHnITRATION 

The wool and worsted manufacturers have been operating under 

the rule of the American Arbitration Association for several years 

and are now incorporating arbitration provisions in their code, both 

for arbitrating disputes between buyers and sellers and disputes between themselyes concerning the rule and regulations that appear in 

the code. 

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 a. 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 coIDinerce which tend 

to diminish the amount thereof, and will provide for the general 

welfare by promoting the organization of industry for the purpose 

of cooperatfre action among trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanction and supervi ion, 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 otherwise rehabilitating industry. · 

(b) The Code as amended complies in all respects with the pertinent provisions of said Title of said Act, including without limitatjon Subsection (a) of Section 3, Subsection (a) Section 7, and Subsection (b) of Section 10 thereof. 

( c) The National Association of Wool l\1anufactnrers was and 

jg an industrial association truly representative of the aforesaid 

Industry and that aid association imposed and imposes no inequitable restrictions on admission to membership therein and has applied 

for or consents to this amendment. 

( d) The amendnients 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, 

JANUARY 23, 1934. 

HUGH s. JOHNSON' 

AdminiYtrator. 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WOOL TEXTILE INDUSTRY 

Pursuant to Article X of the Code of Fair Competition for the 

Wool Textile Industry, approved by the President July 26, 1933, 

said Code is hereby amended in the following manner: 

I 

The first paragraph of Article I shall be modified by deleting the 

word " sales " from the words " worsted sales yarn (Bradford 

System) ", " worsted sales yarn ( French System) ", and " carded 

sales yarn "; by adding after the words " carded sales yarn " the 

words " not including carpet or underwear yarn "; and by adding 

after the word " carbonizing " the words " topmakers, th.e sale of 

fabrics in the piece by members of the Industry and/ or their 

agents"; so that the whole paragraph shall read: 

"I. Definitions.-As used herein the term ' wool textile industry' 

shall include the following branches: :Manufacture of worsted men's 

wear, worsted women's wear, carded men's wear, cardeLl women's. 

wear, blankets, cotton warp fabric , reworked wool, knitted woolen 

goods, worsted yarn (Bradford System), worsted yarn (French 

System), carded yarn not including carpet or underwear yarn, a.nd 

combing wool scouring and carbonizing, top-maker , the sale of 

fabrics in the piece by the members of the Industry and/ or their 

agents, and such other related branche as may from time to time 

be included under the provi ions of this Code." 

II. 

The fir t paragraph of Article III shall be modified by sub tituting for the word "office" the word "office en1ployees receiving more 

than $30.00 per w ek " and by adding at the end of said paragraph 

the sentence: " No office employee receiving $30.00 a week or less 

shall work over forty-eight hours in any one week or more than 

forty hours per week averaged over a thirteen-week period"; so 

that the whole paragraph hall read: 

"Hours of Labor.-On and after the effective date no employer 

shall employ any employee in_ excess of forty hours per week, this, 

however, not to apply to hours of labor for repair-shop crews, 

engineers electricians, firemen, office employees receiving more than 

$30.00 per week, sales and supervisory staff, shipping watching, and 

(5) 
6 

outside crews. No office employee rece1v_1ng $30.00 a week or le s 

shall work over forty-eight hours in any one week or more than 

:forty houn:- per week averaged over a thirteen-week: period." 

III. 

Article VI shall be amended by adding at the end thereof the 

following paragraph : 

" The Association may assess any employer, at such intervals as 

the Association shall determine, his pro-rata share (subject to approval of the Administrator) of the expense of collecting and receiving such reports and of compiling and forwarding to the President the substance thereof." 

IV. 

The following Articles shall be added to and made a part of the 

Code: 

"ARTICLE XII-ADML ISTRATION 

"SECTION 1. Designation of Divisions of the lndustry.-Every person engaged in the ,v ool Textile Industry, who manufactures or sells 

any product or engages in any activity as listed in Schedule 1 under 

a designated Division of the Industry shall, as to each product or 

activity, ·operate under the rules formulated for the Division into 

which that product or activity falls, and shall be a member of that 

Division. The Board of Directors of the National Association of 

Wool :Manufacturers may, from time to time, amend Schedule 1 to 

consolidate Divisions, create new Divisions, subdivide old Divisions, 

or add new products or activities to old Divisions to the extent that 

changes in circumstances require such amendment. Any such amendment shall be subject to appeal to the Code Authority by an interested person, and shall in no event be retroactive. 

"SEc. 2. Organization and Constitution of Code Authority and 

Sub-Code Authorities: 

" (a) In accordance with the Executive Order of July 26, 1933, a 

Wool Textile Industry Committee (hereinafter called the ' Code 

Authority') is hereby constituted to cooperate with the Administrator in the administration of this Code. The Code Authority shall 

consist of six (6) reprernntatives of the Industry elected by a fair 

method of selection, to be approved by the Administrator, and not 

more than three (3) members without vote to be appointed by the 

Administrator and to serve without expense to the Industry. Upon 

the election of the six members by the Industry, as provided above, 

the Code Authority shall be duly constituted and shall function as 

herein set forth, whether or not the Administrator shall have 

apfointed the additional members. 

' (b) The Code Authority shall adopt its own rules and/or methods of procedure and may appoint such officers or agencies as it may 

deem necessary properly to carry out its duties in the administration of this Code. It may delegate to a special Sub-Code Authority 

o,f any Division of the Industry listed in Schedule 1 its powers and 
7 

duties in the admini trntion of all articles of this Code or supplementary code, relating to trade practices of that Di ,·i ion. The 

Sub-Code Authority for each Division of the Inclu try , ·hall consist 

of not less than three ( 3) members and/ or representatives of that 

Division elected by majority vote of the members of nch Divi ion 

and to serve for such periods a, the Division may determine. 

"(c) The members of each Division or Sub-Division may adopt 

their own rule and/ ol' methods of procedure, not inconsistent wit11. 

the Act or with the Code or with the Bylaws of th National A sociation of "\Vool Manufacturers. J\1ernbers of each Di-vi ion or SubDivision may propose rule of practice or of merchandising relating 

to uniform terms, standard ale contracts, ales below cost, the filing 

of pri ·es, competitive practices, etc. .for their Division or SubDivision, amplifying for that Division or Sub-Division the provisions 

of Article XIII hereof in order to promote fair competition; subject to. the approval of the Administrator, such rules of practice and 

such merchan lising rules, when approved by three-fourth vote of 

the members of the Division or Sub-Division affected, by the SubCode Authority of that Division, and by the Code Authority, shall 

be binding upon all member of that Division. Change,s may be 

made in any such rules in the same manner in which the original 

rules were adopted. 

" ( d) For the purpo es of this Section, the three quarter vote may 

be either: (1) three quarters of those voting at a meeting of members of the Division or Sub-Division duly call d for consideration 

o.f the rules; or (2) three quarter,s of those voting on mailed ballots 

sent to addresses of the members of the .Division or Sub-Di vi ion at 

least ten days prior to the clay on which such ballots are to be 

counted. No action by mail ballot shall be binding unless affirmative ballots are received from at least one third of tho,se to whom 

ballot are ent. 

" SEC. 3. Appeals: " (a) Any interested party shall have the right of complaint to 

the Co 1e Authority or the Sub-Code Authority, and shall be given a 

prompt h aring and d cision thereon, under the rules of procedure 

of such body, in respect to the .fairness of any rule of practice of 

merch~nclising adopted for a Division or Sub-Division of which he is 

a. member. 

"(b) Any intereste<l party shall have the right of appeal to the 

Atlmini. trator, under such rules and regulations as the Administrator shall prescribe in respect to any decision, regulation, or 

order made by the Code Authority or Sub-Code Authority under 

the foregoing paragraph.* 

'·ARTICLE XIII-UNFAIR TRADE PRACTICE 

"For the purposes of this Code, the following shall constitute 

unfair trade practices forbidden to all members of the Industry: 

" 1. Selling at terms cliff erent from those prescribed by the rules 

of the Division or Sub-Division or granting to any cu tom r secret 

rebate , sub idies, commis ions, or advertising credits. 

• See paragraph 2 of order approving this am ndment. 
8 

"2. Granting ( excepting in connection with Governm.ent contracts) options or reserYations or selling ' at value,' or guaranteeing 

prices against either advances or declines. 

"3. Shipping goods on consignment, excel?t as may be provided 

for in a Division or Sub-Division merchandising plan. 

"4. Improperly marking perfect goods as 'seconds' or otherwise. 

"5. Publishing or distributing any advertising which is misleading or inaccurate in any material particular, or in any way misrepresenting any goods, or values, policies, services, or the nature 

or form of the business conducted. 

" 6. Manufacturing or selling any article in imitation of a competitor's package, trade mark, or trade name, or selling from a 

competitor's samples. 

"7. Failing to print on copy of contract or order the standard 

sales contract provisions required by Division or Sub-Division rules. 

" 8. Performance of coffilnission work by any employer as an 

incidental function outside his regular recognized activities, without 

complying with his merchandising plan in force for the Division 

or Sub-Division covering such commission work. 

"ARTICLE XIV-ARBITRATION 

" 1. The Sub-Code Authority of each Division of the Industry 

is directed to appoint a Panel consisting of as many persons as it 

deems proper (not limited to members of the Division), to be known 

as the Panel on Trade Disputes and Unfair Practices of the 

Division. 

"2. The Panel shall have jurisdiction to hear, on the complaint of 

any interested person, any dispute, or controversy relatin<Y to a 

violation of any trade practice provision of this Code, whicli may 

effect that Division, or to a violation of the rules of practice or merchandising for that Division. 

"Immediately upon receipt of such complaint in writing a list of 

members of the Panel shall be submitted to the party or parties 

involved who may cross off from the list names of persons to whom 

objection is made. The Sub-Code Authority will then select a committee from the remaining members of the Panel consisting of not 

less than three (3) or more than seven (7) to hear the complaint and 

to make recommendation to the Sub-Code Authority which shall 

take such action as it deen1s necessa.ry. All persons subject to this 

Code shall submit to the Panel such facts and figures pertinent to any 

controversy within the jurisdiction of the Panel, as the Panel may 

request. In the event that either party desires to appeal from the 

findings of the Panel, the 1natter shall then be referred to the American Arbitration Association. 

"3. In the event of an unsettled dispute between buyer and seller, 

the seller must report the dispute to the Sub-Code Authority. The 

buyer may refer his case through the appropriate Sub-Code Authority to the Panel on Trade Disputes and Unfair Practices of the 

Division, if he so elects, or may take the matter direct to the American Arbitration Association. 

" 4. A copy of the findings in any arbitration either by the Panel 

or by the American Arbitration Association shall be promptly for-
9 

warded to the Sub-Code Authority and may at the discretion of that 

Authority be publi:hed to the members of the Divi ion concerned. 

" Ann 'LE XV-GE~ ERAL 

"1. The employment of any ·ubterfuge to circumvent this Code or 

any provision thereof shall be regarded as a violation thereof. 

'' 2. By presenting this Code the members of the Industry assenting thereto do not thereby consent to any modifications thereof and 

they re erve the right to object individually or jointly to any such 

mo lifications. 

'· 3. "\Vhere the rule.· of practice or merchandising for any Division 

require or permit the filing of prices and/ or samples, and price files 

and/or sample file · shall not be available for inspection by members 

of the Division, but members of the Division will be entitled to ask 

at reasonable time.· for information contained in said files, which 

information shall be furnished by those in charge of the files. 

' SCHEDULE I 

' For the pnrpo ·e:':i of this Code, the following groups of persons 

engaged in the 1, ool Textile Industry shall constitute the respective 

divisions of the Indu .... try. Such divisions may be subdivided, combined, or realio-ned from time to time by the Board of Directors of 

the National As. ociation of ,v ool l\1anufacturers. 

" I. ,v orstecl Men's "\Vear 

" II. "\Vorsted Women's wear 

'' III. Carded Men's wear " I V. Carded Women's wear 

'V. Blankets 

' VI. otton Warps 

"VII. Knitted Woolen Goods 

" VIII. Worsted Sp~nners ( sales yarn) Bradford System 

"IX. Warted Spinners (sales yarn) French System 

" X. arded Spinners ( sales yarn) 

' XI. Combers 

' XII. "\Vool scourers and carbonizers 

" XIII. Piece Goods Selling 

XIV. Reworked wool 

' XV. Topmaker 

"For the pnrpo. of the 'Rnles of Practice and l\ferchandising for 

the Piece Goods Selling Divi ion', this Division shall be composed 

of the a tfrc member. making "\Y or -ted l\fen's Wear, Worsted 

vVomen' "\Vear, Carded l\1en's "\Vear Carded ,vomen' "\Vear Cotton ,v arp ancl Knitted \\ ool n Goo ls. Each member of aid DiYision shall Yote either indiYi<lually or 

through a duly appointed repr ,sentative." 

Approved Cocl No. 3- Amendmeut No. 1. 

R gir-:try No. 280-04:. 

0