Approved Code No. 84-Supplement No. 22 Registry No. 1114-22 

. ' 

NATION.A~ RECOVERY ADMINISTRATION 

I 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

DRAPERY AND CARPET 

HARDWARE MANUFACTURING 

INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON MAY 9, 1934 

WE DO OUR PART 

.... --- I 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superintendent of Documents. Washington, D.C. Frice 5 cen~ 

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

Printing Office, Washington, D.O., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

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. 

Ch a rleston, 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, Micll.: 801 First National Bank Building. 

H ouston, Tex.: Chamber of Commerce Building. 

Indianapolis, Incl.: 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. 

l\1emphis, 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, P a . : Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Cu. tomhouse. 

Seattle, Wash.: 809 F ederal Office Building. 
Approved Cede No. 84-Supplement No. 22 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

DRAPERY AND CARPET HARDWARE 

MANUFACTURING INDUSTRY 

As Approved on May 9, 1934 

ORDER 

APPROVING SUPPLEMENTARY CoDE oF FAIR CoMPETITION FOR THE 

DRAPERY AND CARPET HARDWARE MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING 

AND METAL FINISHING AND METAL COATING 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, and in accordance with the 

provisions of Section I of Article VI of the Basic Code for the Fabricated 11etal Products Manufacturing and Metal Finishing and 

Metal Coating Industry, approved November 2, 1933, for approval of 

a Supplementary Code of Fair CompBtition for the Drapery and 

Carpet Hardware Manufacturing Industry, and hearing having been 

duly held thereon; and the annexed report on said Supplementary 

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 and do find that said Supplementary Code complies 

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 Supplementary Code of Fair Competition be and it is 

hereby approved; provided, however, that the provisions of Article 

V, Section 1, insofar as they prescribe a waiting period between the 

filing with the Code Authority (or such agency as may be designated 

in the Code) and the effective date of price lists, as originally filed 

and/ or revised price lists or revised terms and conditions of sale, 

be and they hereby are stayed pending my further Order. 

HuGHS. JoHNSON, 

Arl1nilnistrator for Industrial R ecovery. 

Approval Recommended: 

A. R. GLANCY, 

Division Ad1ninistr·ator. 

WASH! TGTON, D.C. 

May9,1934. 

57801°----544-49----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: This is a report on the Supplementary Code of Fair Competition for the Drapery And Carpet Hardware Manufacturing Industry, a division of the Fabricated Metal Products Manufacturing and 

Metal Finishing and Metal Coating Industry, the hearing having 

been conducted thereon in Washington, D.C., January 19, 1934, in 

accordance with the provisions of Title I of the National Industrial 

Recovery Act. 

GENERAL STATEMENT 

The Drapery And Carpet Hardware Manufacturing Industry, 

being truly representative of this division of the Fabricated Metal 

Products 1\fannfacturing and Metal Finishing and :Metal Coating 

Industry, has elected to avail itself of the option of submitting a 

Supplementary Code of Fair Competition, a provided for in Section 

1 of Article VI of the Basic Code, for the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

approved by you on the second day of November, 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supplementary Code. 

Article III. This Industry is a division of the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establishes a Supplementary Code Authority consisting 

of seven (7) members to be elected by the members of the Industry 

at a meeting called by the Temporary Supplementary Code Committee, and gives the Administrator the authority to appoint one additional member without Yote and provides machinery for obtaining 

statistics and the administration of the Supplementary Code. 

Article V provides for methods of setting up and revising price 

li t . 

Article VI provides for determining the lowest reasonable cost of 

the products of this Industry. 

Article VII s ts forth the unfair trade practices of this Supplementary Code which has been especially designed to off et unfair 

competition in this division of the Industry. 

Article VIII provides against monopolies and monopolistic 

practices. 

(2) 
3 

Article- IX contains the mandatory provisions contained in Section 10 (b) and also provides :for the submission o:f proposed amendments to the Supplementary Code. 

Article X recognizes that price increases be limited to actual 

additional increases in the seller's costs. 

Article XI states the effecti~e date of this Supplementary Code. 

FINDINGS 

The ep ut~y Administrator in his final report to me on said Supplementary Code having :found as herein set :forth and on the basis 

o:f all the proceedings in this matter: 

I find that: · 

(a) Said Supplementary Code is well designed to promote the 

policies and purposes o:f Title I o£ the National Industrial Recovery 

Act, including removal o:f obstructions to the :free flow o£ interstate 

and :foreign commerce which tend to diminish the amount thereof 

and will provide :for the general wel:fare by promoting the organization o£ industry :for the purpose o£ cooperative action among 

the trade groups, by inducing and maintaining united action of 

labor and management under adequate governmental sanctions and 

supervision, by eliminating unfair competitive practices, by promoting the :fullest possible utilization o£ the present productive capacity o£ industries, by avoiding undue r estrictions o:f production 

(except as may be temporarily required), by increasing the consumption o:f industrial and agricultural products through increasing 

purchasing power, by reducing and relieving unemployment, by improving standards o:f labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and js not classified by me as a major industry. 

(c) The Supplementary Code as approved complies in all respects with the pertinent provisions o:f said Title o£ said Act, including without limitation Subsection (a) o:f Section 3, Subsection 

(a) o£ Section 7, and Subsection (b) o£ Section 10 thereof; and that 

the applicant group is an industrial group truly representative of 

the aforesaid Industry; and that said association imposes no inequitable restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not 

permit monopolies or monopolistic practices. 

(e) The Supplementary Code is 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 o:f the economic process have not 

been deprived o£ the right to be heard p'rior to approval o:f said . Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code. 

Respectfully, 

MAY ·9, 1934. 

HuGHS. JoHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE DRAPERY AND CARPET HARDvVARE MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

METAL FINISHING AND METAL COATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Drapery and Carpet 

Hardware Manufacturing Industry. Pursuant to Article VI of the 

Basic Code of Fair Competition for the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

approved by the President of the United States on the 2d day of 

November, 1933, the provisions of this Supplementary Code shall be 

the standard of fair competition for such Industry and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The terms "President"," Act" and "Administrator", 

as used herein, shall mean the President of the United States, the 

National Industrial Recovery Act, and the Administrator for Industrial Recovery under said Act. 

SEcTION 2. The term "Industry" and/ or "Drapery and Carpet 

Hardware Industry" means and includes the business of manufacturing Drapery and/or Carpet H ardware. 

SECTION 3. " Drapery and Carpet Hardware" means and includes: 

(a) Drapery Hardware: All wood, metal or glass devices, or 

devices made of any other material, ordinarily used to support draperies at window , doorways or like spaces. These devices are Rods 

or Tubes, either of fixed length or adjustable, either stationary or 

detachable fron1 Brackets f astened to the wall at either end of the 

Rod or Tube; or supported from one end only, so that they can 

swing away from the window or door. Also the I-Iooks or Brackets 

to support such Rods or Arms, and the Rings, Hooks, Pins and 

Special Pins used to attach the draperies to the Rods or Arms. Al o 

the Pulley , Carriers, Brackets, Tassel , and other devices used in 

moving the draperies to and fro, so as to either cover or lisclo e 

the window or door. Also such metal or other fixture generally 

known in the trade as Holdbacks, used to tie back th drapery 

fabric in an arched arrangement. Al o those special forms of 

Hardware used by decorator and housewives to obtain particular 

effect in the arrangement of draperies and recognized by thmn under 

the cla sification of Drapery Hardware. 

(4) 
5 

(b) Carpet Hard ware : All metal and wood pieces or pieces made 

of any other material, or strips used to cover or protect from wear 

the edges, seams or joints of linoleum or other floor coverings. 

Where linoleum or like material is used as a surface on desks or 

display tables, the metal and wood strips and corners used to provide firm edges, are included in the term "Carpet Hardware". The 

term also includes the metal lilates or nosings, or plates or nosings 

of any other material, generally used on the treads of stair cases. 

Also stair rods and fasteners, rug fasteners and carpet pins and 

sockets. 

SECTION 4. The term "product" means and includes Drapery 

and/or Carpet Hardware as herein defined. 

SECTION 5. The term "member of the Industry" means and 

includes any person, firm, corporation or association operating a 

plant or plants manufacturing Drapery andj or Carpet Hardware, 

whether for its own use or for sale. 

SECTION 6. The term " member of the Supplementary Code " 

means any member of the Industry who shall have assented to the 

provisions of this Supplementary Code by instrument in writing 

duly filed with the Secretary. 

SECTION 7. The term "employee" as used herein includes anyone 

engaged in the Industry in any capacity receiving compensation 

for his services, irrespective of the nature or method of payment of 

such compensation. 

SECTION 8. The term "employer" as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 9. The term "Basic Code" as used herein is defined to 

mean the Basic Code of Fair Competition for the Fabricated 

Metal Products Manufacturing and Metal Finishing and Metal 

Coating Industry as approved by the President on the 2nd day of 

November, 1933. 

SECTION 10. The term "Supplementary Code Authority" as used 

herein is defined to mean the agency which is to administer this 

Supplementary Code as hereinafter provided. 

SECTION 11. The term " Bureau " means Drapery and Carpet 

Hardware Manufacturers' Bureau, or its successor. 

SECTION 12. The term "Executive Committee" means Executive 

Committee of Drapery and Carpet Hardware Manufacturers' 

Bureau. 

SECTION 13. The term "Secretary" means Secretary of Drapery 

and Carpet Hardware Manufacturers' Bureau, or such other impartial and confidential agency as the Supplementary Code Authority 

may designate. 

ARTICLE III-EMPLOYMENT PROVISIONS 

T·his Industry is a division of the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

and the wage, hour and labor provisions in Article III of its basic 

code as approved by the President November 2, 1933, including 

Section 1 of said Article III by which the provisions of Subsections 

(1), (2) and (3) of Section 7 (a) of Title I of the Act are made 

conditions of this Code, are specifically incorporated herein and made 
6 

a part hereof as the wage, hour and labor provisions of this 

Supplementary Code. 

ARTICLE IV-ORGANIZATION AND ADMINISTRATION 

SECTION 1. During the period not to exceed sixty (60) days following the effective date, the Execut";ve Committee shall constitute 

a Temporary Supplementary Code Authority, who shall have all the 

powers and duties of the Supplementary Code Authority, herein set 

forth, until the Supplementary Code Authority is elected. There 

shall be constituted within the sixty-day period a Supplementary 

Code Authority consisting of seven (7) members to bB elected by the 

membBrs of the Industry, at a meeting called by the temporary 

Supplementary Code Authority, upon ten days' notice sent by registered mail to all members of the Industry whose names can be 

ascertained after diligent search, who may vote either in person 

or by proxy. The members of the Supplementary Code Authority 

first elected shall serve until the following annual meeting of the 

Bureau and until their successors are elected, and thereafter, mem· 

bers of the Supplementary Code Authority shall be elected immediately after each annual meeting of the Bureau to serve until their 

successors are elected. Notice of each election shall be sent in the 

manner above provided. The membership of the Supplementary 

Code Authority shall be made up as follows: 

(a) Two (2) members who shall be members of the Industry 

elected by a majority vote of the members of the Indu try present 

in person or represented by proxy, each member to have one vote; 

(b) One (1) member who is not a member of the Bureau elected 

by a majority vote of the non-members of the Bureau, present in 

person or represented by proxy, each member to have one vote ; 

(c) Four ( 4) members who shall be members of the Bureau elected 

by fifty-one percent vote of members of the Bureau, present in person 

or represented by proxy, wejghted on the basis of one vote for each 

member and additional votes equal to the percentage which each such 

member's dollar volume bears to the total dollar volume of the members of the Bureau in the previous calendar year, reported to the 

Secretary. Provided, however, That no one member may have more 

than 33 such votes and provided, further, that the election shall be 

so conducted that no member of the Bureau shall a certain the volume of any other member; 

(d) A vacancy in the membership of the Supplementary Code 

Authority may be filled by majority vote of the remaining members 

of the Supplementary Code Authority; 

(e) In addition to the above the Administrator may appoint one 

representative without vote and without expense to the Industry 

unless the Supplementary Code Authority aO'ree to pay such expenses, to serve on said Supplementary Code Authority in the· 

administration of this Supplementary Code. Said repre entative 

shall oo given reasonable n otice of all meetings of the Supplementary 

Code Authority. 

SECTION 2. Any A ciation, Institute and/ or Bureau directly or 

indirectly participating in the selection or activitie of the Supplementary Code Authority shall (1) impose no inequitable restrictions 
7 

on membership, and (2) submit to the Administrator true copies of 

its Articles of A sociation, By-Laws, Regulations and any amendments when made thereto, together with such other information as 

to member hip, organization, and activities a the Administrator 

ma:v deem necescary to effectuate the purpose of the Act. 

SEcTION 3. In order that the Supplementary Code Authority shall, 

at all times, be truly representative of the Indu try and in other 

respects comply with the provisions of the Act, the Administrator 

may prescribe such H earings as he may deem proper; and, thereafter, if he shall find that the Supplementary Code Authority is not 

truly repre entative or does not in other respects comply with the 

provisions of the Act, may require an appropriate modification in 

the method of selection of the Supplementary Code Authority. 

SECTION 4. The Supplementary Code Authority is hereby constituted the agency to administer the provisions of this Supplementary 

Code and to collect and distribute all statistical reports of the Industry. With a view to keeping the President informed as to the ob erv- ance or nonobservance of this Supplementary Code, said agency shall 

collect through the Secretary such statistics as called for by the 

President andjor the Administrator and send them in such form as 

the President and/or the Administrator may require to the Fabricated l\fetal Products Federation, or successor organization, as the 

agency administering said Basic Code. All individual reports shall 

be treated as confidential by the Secretary and shall not be disclosed 

to any member of the Industry or any other party except where necessary in the enforcement of this Code and except to such governmental 

agencies as may be directed by the Administrator. 

SECTION 5. The Supplementary Code Authority as such agency 

shall also from time to time furnish to the Basic Code Authority 

designated in said Basic Code, such information as may be required 

to be furnished under the terms of said Basic Code. 

SECTION 6. The Supplementary Code Authority shall have power 

from time to time to require each member of the Industry to furnish 

to the Secretary such information as is required by the Admini trator, concerning the production, shipm-ents, sales and orders of such 

member and the hours of labor, rates of pay and other conditions 

of employment at the plant or plants of such member and such other 

information as the Supplementary Code Authority shall deem necessary or proper in order to effectuate the purposes of this Code and 

the policy of the Act. All individual reports shall be treated as 

confidential by the Secretary and shall not be disclosed to any member of the Industry or any other party except where necessary in 

the enforcement of this Code and except to uch governmental agencies as may be directed by the Administrator. 

SECTION 7. The Supplementary Code Authority may require that 

any such information be furni heel periodically at such times as it 

snail specify, and may require that any or all information furnished 

be sworn to or otherwise certified or authenticated as it shall prescribe. Failure of any member of the Industry promptly to furnish 

to the Secretary information required by the said Supplementary 

Code Authority and substantially in the form prescribed by it shall 

constitute a violation of the Code. 
8 

SECTION 8. Any or all information furnished to the Secretary by 

any corporate member of the Industry specifically assenting hereto 

pursuant to the provisions of this Code shall be subject to verification by an examination of the pertinent books, accounts and records 

of such member by any accountant or accountants or other. person 

or persons designated by the Supplementary Code Authonty and 

shall be so checked for such purpose if the Supplementary Code 

Authority shall require it. The cost of each such examination shall 

be treated as an expense of administering the Code. 

SECTION 9. All members of the Industry are . subject to the jurisdiction of the Supplementary Code Authority; shall be entitled 

to participate in and share the benefits of the Supplementary Code 

Authority; shall be entitled to vote in the selection of the Supplementary Code Authority as provided in Section 1 of this Article; 

and shall pay to the Secretary as the agent of the Supplementary 

Code Authority their reasonable share of the expenses of the Administration of this Supplementray Code, such reasonable share to 

be determined by the Supplementary Code Authority, subject to 

review by the Administrator on the basis of volume of business 

and/ or such other factors as may be deemed equitable by the Supplementary Code Authority. 

SECTION 10. Nothing contained in this Supplementary Code shal.l 

be deemed to constitute the members of the Supplementary Code 

Authority partners for any purpose, whatsoever. Nor shall any 

n1ember of the Supplementary Code Authority be liable in any 

manner to anyone for any act of any other member, officer, agent 

or employee of the Supplementary Code Authority. Nor shall any 

member of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to 

anyone for any action or omission to act under this Code, except 

for his own wilful misfeasance or non-feasance. 

SECTION 11. The Supplementary Code Authority shall without 

any limitation on the foregoing have the following further general 

powers and duties subject to such rules and regulations as the 

Administrator may prescribe: 

(a) To insure the execution of the provisions of this Supplementary Code and provide for the compliance of the Industry with 

the provisions of the Act; 

(b) To adopt by-laws and rules and regulations for its procedure 

and for the administration of the Supplementary Code; 

(c) To obtain from members of the Industry such inform.ation 

and reports as are required for the administration of the Supplementary Code. In addition to information required to be submitted 

to ~he Suppl~mentary Code Authority, all or any of the persons 

subJect to th1s Supplementary Code shall furnish such statistical 

information as the Administrator may deem necessary for the 

purposes r ecited in section 3 (a) of the Act to such Federal and 

Stat~ ag~ncie~ as the Administrator may designate. Provided that 

notlung 1n th1s Supplementary Code shall relieve any member of the 

Industry of any existing obligations to furnish reports to any government agency; 

(d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 
9 

herein, provided that nothing herein shall relieve the Supplementary 

Code Authority of its duties· or responsibilities under this Supplementary Code and that such trade associations and agencies shall 

at all times be subject to and comply with the provisions hereof; 

(e) To make recommendations to the Administratof"' for the coordination of the administration of this Supplementary Code with 

such other Codes, if any, as may be related to the Industry; 

(f) To secure from members of the Industry an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Supplementary Code Authority and its activities ; 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the Industry who 

have assented to, and are complying with, this Supplementary Code; 

(h) To recommend to the Administrator further fair trade practice provisions to govern members of the Industry in their relations 

with each other or with other Industries and to recommend to the 

Administrator measure,s for industrial planning, including stabilization of employment; 

(i) To establish an impartial agency for the registration of original designs, patterns or forms, and to promulgate and from time to ·time amend rules and regulations for the registration thereof, all 

subject to the approval of the Ad1ninistrator. 

(j) To set up definitions for the various classes of customers of 

the Industry. \iVhen such definitions are approved by the Administrator, quotations, prices, discount, credit terms, allowances or other 

conditions of sale shall be made on the basis of and with reference 

to such definitions, and deviations therefrom shall constitute unfair 

methods of competition and shall be deemed to be a violation of 

this Code. 

SECTION 12. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof is 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. Further action by such 

Supplementary Code Authority or agency regarding the matter 

complained of may be taken if approved by the Administrator but 

shall not be taken if disapproved by the Administrator within thirty 

days of notice to him of intention to proceed with such action. 

ARTICLE V-PRICE LISTS 

SECTION 1. The Supplementary Code Authority may r equire each 

m-ember of the Industry who manufactures and sells any product of 

the Industry within ten (10) days after the effective date of this 

Supplementary Code to file with the Secretary and publish duplicate 

originals of all price lists, catalogues, descriptive price lists and 

literature showing or pertaining to prices and other conditions of 

sale, special discounts for various classes of customers or for quantity, together with any trade policy affecting the net price of the 

merchandise, in such numbers as may be requested by the Secretary 

for distribution to the members of the Supplementary Code, and in 

such form as the Supplementary Code Authority may direct, showing 

in separate schedules such member's net price to, or discount from 

list allowed to such of the following classes of purchasers as said 
10 

member sells or quotes: chain-stores, catalogue or mail-order houses, 

jobbers, retailers and consumers. Said price list shall be made 

available to all interested parties. Provided, however, that nothing 

in this paragraph contained shall compel a member of the Industry 

to file a price list or price lists on any product of the Industry 

manufactured and used by such manufacturer for the purpose of 

making up other products not products of the Industry, or for 

export as the term is defined in Article VII, Paragraph A, of this 

Supplementary Code. The Secretary shall immediately send copies 

thereof to all other members of the Supplementary Code and shall 

make said price lists available to all interested parties. Provided 

further that prices to chain-stores need not be filed but any member 

of the Industry may do so if he desires. None of the price data so 

filed as herein provided shall be changed except by the filing with 

the Secretary, by such member of the Industry new price data 

setting forth such change or changes which shall become effective 

and be published on the effective date specified by such member of 

the Industry which shall be ten (10) days after the date on which 

such new price data shall have been filed with the Secretary, and 

copies thereof with notice of the effective date specified shall be 

immediately sent to all members of the Supplementary Code, who 

thereupon may file if they so desire, to become effective upon the 

date when the revised price data first filed shall go into effect, or at 

a subsequent specified date, revisions of their price data, establishing 

prices not more favorable to the purchaser than those established 

in the revised price data first filed. 1 

SECTION 2. No member of the Industry shall make any sale or 

quotation of any product of the Industry at prices or on conditions 

more favorable to the purchaser thereof than those specified in the 

price data so filed by such member in accordance with the provisions of this Supplementary Code and in effect at the time of such 

sale; nor shall any member of the Industry make any contract of 

sale of any product of the Industry at prices or on conditions more 

favorable to the purchaser thereof than those specified in the price 

data so filed as aforesaid and in effect at the time of the making 

of such contract of sale. For all purposes of this Article a delivery 

of any product made pursuant to a contract of sale shall be regarded 

as a sale thereof made at the time of the making of such contract. 

ARTICLE VI-SALES BELOw REASONABLE CosT 

Notwithstanding any other provisions of this Supplemental Code, 

when the Supplementary Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Supplementary Code, the 

Supplementary Code Authority may cause to be determined the 

lowest reasonable cost of the products of this Industry, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or 

modify the determination. Thereafter, duri·ng the perjod of the 

1 See paragraph 2 of order approving this Code. 

,/ 
11 

emergency, it shall be an unfair trade practice for any memb.er 

of the Industry to sell or offer to sell any products of the Industry 

for which the lowest reasonable cost has been determined at such 

prices or upon such terms or conditions of sale that the buyer will 

pay less therefor than such lowest reasonable cost of such products. 

"Then it appears that conditions have changed, the Supplementary 

Code Authority, upon its own initiative or upon the request of any 

interested party, shall cause the determination to be reviewed. 

ARTICLE VII-UNFAIR TRADE PRACTICES 

SECTION 1. For all purposes of this Supplementary Code the following described acts shall constitute unfair practices. Such unfair 

practices shall be deemed to be unfair methods of competition in 

commerce, within the meaning of the Federal Trade Commission 

Act, as amended, and the using or employing of any of them shall 

be deemed to be a violation of this Supplementary Code: 

(a) The sale or exchange of any product in whole or in part 

below the cost of such product to the particular member of the 

Industry, such cost to be computed according to a cost formula to be 

formulated by the Supplementary Code Authority or approved by 

a reputable firm of accountants, and approved by the Administrator: 

Provided, lw,w:ever, That dropped lines, or seconds, or inventories 

which must be converted into cash to meet emergency needs may 

be disposed of by any member of the Industry, at any price and 

on any terms and conditions, but only if such member of the Industry has filed with Supplementary Code Authority, not less than 

two weeks before such disposal, a statement in writing, setting forth 

the fact of and reasons for, such proposed disposal. 

Provided, fttrther, That selling below cost (as defined in Paragraph I of this Section A) to meet existing competition on products 

of equivalent design, character, quality or specifications shall not be 

deemed a violation of this Article; 

Provided, fu?·'ther, That no provisions of this Supplementary Code 

relating to prices or terms of sale, shipping or marketing, shall 

apply to or affect the sale of any product for direct shipment in 

export trade by any member of the Industry within the meaning 

of the term "export trade" as it is used in the Export Trade Act. 

(b) The provisions of Article V, Paragraph (b) to (g), inclusive, 

of the Basic Code are a part of this Supplementary Code to the 

f;ame extent as if here repeated and set forth in full. 

(c) Supplying usable samples in excess of the value of 25¢ each, 

for display purposes for less than lawful prices. Supplying with- out charge or at less than cost sample boards and equipment connected therewith, including the servicing thereof except samples or 

models submitted for buyers' inspection and review, not offered to 

all purchasers under like conditions, which conditions shall be a 

manufacturer's trade policy published and offered in connection with 

price lists to the trade illustrating or describing merchandise to be 

sold in connection therewith. 

(d) Making or giving to any purchaser of any product any guarantee or protection in any form against decline in market price of 

such product, after date of shipment. 
12 

(e) Cancelling in whole or in part, or permitting the cancellation 

in whole or in part, of any contract of sale of any product unless 

for justifiable cause or a fair consideration. 

(f) Making contracts requiring delivery of specified quantity or 

quantities in specified time, if demanded by the buyer, but not requiring the buyer to accept such quantity or quantities within the 

specified time. 

(g) 1.1aking contracts at a specified price for an unspecified quantity for delivery as demanded by the buyer. 

(h) Offering any article, by price or otherwise, in a manner to 

influence the purchase of another article. 

(i) Soliciting by any member of the Industry the pooling of 

orders from several customers and/or buyers in a manner to give 

the customers and/ or buyers advantage of more favorable price or 

terms than those to which the buyers would be entitled individually. 

(j) Consigning merchandise for any reason whatsoever, except 

to a wholly owned or controlled subsidiary, or except under circumstances to be defined by the Supplementary Code Authority where 

peculiar circumstances of the Industry require the practice. 

(k) Copying original designs, patterns or forms of any member 

of the Supplementary Code, filed pursuant to the provisions of this 

Supplementary Code, without his consent. 

( l) Accepting the return of merchandise for reasons other than 

defects in such merchandise existing at the time of shipment, seller's 

mistake in shipment or purchaser's credit becoming impaired unless 

a minimum charge of 10% for rehandling be made. Accepting the 

return of discontinued and/or unlisted merchandise under any circumstances except because of defects in such merchandise existine 

at the time of shipment, seller's mistake in shipment or purchasers 

credit becoming impaired. 

SECTION 2. Terms shall be two per cent ten days, net thirty days, 

with the privilege to discount all invoices of any one month on the 

tenth day of the month following, with no allowance for anticipation; all shipments to be made f.o.b. factory, warehouse or branch 

with store door delivery permitted in towns or cities where such 

factory, warehouse or branch is located, provided, however, that 

any manufacturer shall have the right to bill his merchandise with 

freight allowance to equal f.o.b. shipping point or store door 

delivery of any competing manufacturer's factory from which competing merchandise is su,pplied, or to equal f.o.b. shipping point 

or store door delivery of any competing manufacturer's warehouse 

or branch from which competing merchandise is supplied if the 

price of any such competing manufacturer's warehouse or branch 

does not include freight from source of shipment. The violation of 

any of the provisions of this Section shall constitute an unfair 

practice and a violation of this Supplementary Code. 

SECTION 3. One of the main causes of demoralization and ruinous 

price conditions in the Industry has been the substitution for 

Standard Products of products which do not .measure up to recognized standards. It therefore shall be an unfair method of competition for any manufacturer, when an inquiry calling for a Standard 

Product is received, to quote on or sell a product which does not 

n1easure up to the specifications of Standard for said product. 
13 

The Standards for Drapery and/or Carpet Hardware, as to form, 

dimen ions, material , etc. shall be the . tundards promulgated and, 

from time to time, amended by the Supplementary Code Authority 

in cooperation with the Bureau of Standards of the United States 

subject to the approval of the Administrator. Provided, however, 

that neither thi Article nor any provision thereof shall be onstrued 

to prevent a member of the Indu try from continuing to manufacture and sell, pursuant to the remaining provisions of this Supplementary Code, any product or products manufactured and ·old by 

him prior to the effective date of this Supplementary Code, without 

the consent of such member. Provided, further, that neither this 

Article nor any provision thereof shall be construed to prevent a 

member of the Industry from developing new designs or types of 

Standard or other products and manufa cturing and selling the 

same pursuant to the remaining provisions of this Supplementary 

Code. 

ARTICLE VIII-Th1:oNOPOLIES 

No provision of this Supplementary Code shall be applied so as 

to permit monopolies or monopolistic practice , or to eliminate, oppress or discriminate again t sma.ll enterprises. 

ARTICLE IX-Th1:oniFICA TIONs 

SECTION 1. This Supplementary Code and all the provisions thereof 

are expressly made subject to the right of the President, in accordance with provisions of subsection (b) of Section 10 of the Act, from 

time to time to cancel or modify any order, approval, license, rule 

or regulation i sued under said Act. 

SECTION 2. This Supplementary Code, except as to provisions required by the Act, may be modified on the basis of experience or 

changes in circumstances, such modifications to be based upon application to the Administrator and such Notice and I-Iearing as he shall 

specify and to become effective on approval by the Pre ident. 

ARTICLE X-PRlCE INCREASES 

vVhereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if price of goods and 

services increase as rapidly as wages, it is recognized that price 

increases except such as may be required to meet individual costs 

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

possible, be limited to actual additional increases in the seller's costs. 

ARTICLE XI-EFFECTIVE DATE 

This Supplementary Code hall become effective at 12: 01 o'clock 

a.m. Eastern Standard Time of the tenth day after it is approved by 

the President. 

Approved Code No. 84. Supplement No. 22. 

Registry No. 1114-22. 

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UNIVERSITY OF FLORIDA 

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