Approved Code No. 1. Supplement No. 1 Registry No. 299-25 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

AS APPROVED ON JANUARY 24, 1934 

WE DO OUR PART 

UNITED ST A TES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

l I 

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., 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. 

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 1Nrst National Bank Building. 

Houston, Tex. : Chamber of Commerct? Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore A venue. 

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. : 4~2 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, Wash.: 809 Federal Office Building. 
Approved Code No. 1-Supplement No. 1 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

As Approved on January 24, 1934 

ORDER 

APPROVING SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

COTTON TEXTILE INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supplemental Code to the Code of Fair Competition for the Cotton Textile 

Industry, and hearings having been duly held thereon and the annexed report on said Code, containing findings with respect thereto, 

having been made and directed to the 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 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 Code 

of Fair Competition be and it is hereby approved. 

HUGH s. JOHNSON, 

Adm,inistvrator for Industrial Recovery. 

Approval recommended: 

A. D. "\VHITESIDE, 

Division Adm,inistrator. 

\VASHINGTON, D.C., 

January f 4, 1934. 

35713°-313-133-34 (1) 
The PRESIDENT, 

The White HO'USe. 

Srn: This is a report on the Hearing on Supplemental Code No. 1 

to the Cotton Textile Code, containing trade practices relating to 

the sale and distribution of products of the Cotton Textile Industry, 

held in accordance with the provisions of the National Industrial 

Recovery Act, in the Willard Room of the New Willard Hotel on 

November 23, 1933. The Code, which is attached, was presented by 

duly qualified and authorized representatives of the Industry, complying with statutory requirements, said to represent 177 out of 

350 concerns and 75% in volume of the Industry. 

In accordance with the customary procedure every person who 

had filed a request for an appearance was freely heard in public, 

and all statutory and regulatory requirements were complied with. 

The Code originally proposed was for the Cotton Converting 

Industry. To understand the functions of converting, it must be 

appreciated that the business of merchandising goods included under 

this Code involves an element of speculation in style and market. 

Where this speculation is inherent to a marked degree, the function 

of risk taking and merchandising has been fulfilled by concerns 

separate from manufacturers and producers of the merchandise. 

Where portions of the business handled by these converting firms are 

found to be of such a nature that stability of style and use lessens 

the risk and where it is not necessary to distribute the product of 

one manufacturing establishment over a too-extended variety of 

outlets, the plants themselves are ,-found to be in competition with 

the converters. Accordingly, it was found that the converting industry wanted its trade practices to cover original sale by manufacturing. plants, designated as "integrated producers", while manufacturing plants themselves wanted the sale of their products 

covered, as in most other instances, by their own manufacturing code. 

To solve this problem, the Cotton Converting Industry has been 

brought into the Cotton Textile Code. It constitutes in essence part 

of the original sale of merchandise manufactured under this latter 

Code, rather than occupying the position of jobber or distributor. 

THE INDUSTRY 

The Industry comprises about 350 concerns, having an aggregate 

invested capital of approximately $200,000,000. In 1929 the Industry 

provided employment for 10,000 workers. This figure has declined 

to about 9,000 employees in 1933. The aggregate annual sales have 

fallen from $1,000,000,000 in 1929 to about $600,000,000 in 1932. 

(2) 

I 
3 

PROVISIONS OF THE CODE 

While the problem of employment from a Code point of view in 

the Industry is a comparatively minor one, the orderly maintenance 

of the right kind of market for cloth is a help toward more continuous employment in the weaving and finishing mills which supply 

this market. Accordingly, the trade practices submitted in the proposed supplemental Code have been given careful study. They have 

been assented to by the preponderant majority of the Converting 

Industry, and by the Cotton Textile Industry Committee, subject to 

individual members of the Industry having the right to make their 

own objections. Such objections have been duly heard. The provisions offered herewith are not nearly as restrictive in many cases 

as those proposed. They are, however, corrective of certain admitted abuses and are an attempt at self-regulation on the part 

of the Industry, while containing no provisions likely to constitute 

a burdensome hampering of trade. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions t,o the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide 

for the general welfare by promoting the organization -of industry 

for the purpose of cooperative action among the trade groqps, 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 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) Said Industrj7 normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid 

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

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

or monopolistic practices. 
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( e) The Code is not designed to and will not eliminate or oppress 

bmall 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, the Code has been approved. 

Respectfully. 

J ANU.ARY 24, 1934. 

HUGH 8. JOHNSON, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETIT'ION 

FOR THE 

COTTON TEXTILE INDUSTRY 

To effectuate the policies 0£ Title I 0£ the National Industrial 

Recovery Act (hereinafter referred to as the "Act"), the following 

provisions are established as Supplemental Code No. 1 to the Code 

0£ Fair Competition for the Cotton Textile Industry, to deal with 

trade practices in the sale and distribution 0£ the products 0£ that 

Industry, and shall be the standard 0£ fair competition for such 

Industry in respect of such sale and distribution, and shall be binding upon every member thereof in the manner and to the extent 

therein provided. 

I. Definitions.-(!) "Master Code" means the Code 0£ Fair Competition for the Cotton Textile Industry, finally approved July 16, 

1933, as heretofore or hereafter amended. 

(2) "Branch 0£ the Industry" means the sale and distribution at 

wholesale 0£ products of the Cotton Textile Indvstry by any concern 

insofar as it does manufacturing and/or finishing 0£ the same for its 

own account or the account of others or has the same finished by 

others for its own account or £or the account of others, or by a 

commission house or broker acting for same. 

(3) "Member 0£ branch 0£ the Industry" means any business 

entity engaged in this branch 0£ the Industry. 

( 4) " Finished goods " means grey goods, products of the Cotton 

Textile Industry, after being processed or finished in the completed 

fabrics as intended for use. 

II. All members 0£ this branch of the Industry shall be subject 

to and comply with the provisions of the Master Code in addition 

to the applicable provisions 0£ this Supplemental Code. 

III. There shall be constituted at this time in this branch of the 

Industry the following divisions 0£ finished goods, the precise scope 

0£ these divisions being further defined in Section V hereof: 

1. Clothiers' Linings ( other than all-cotton). 

2. Corset, Brassiere, and Allied Trades Fabrics. 

3. All-Cotton Clothing Lining. 

4. Curtain and Drapery Fabrics. 

5. Shirtings. 

G. \V ash Goods. 

7. Interlinings. 

Anything herein or in Section V hereof to the contrary notwithstanding the foreo·oing divisions shall not include the following: 

Moleskin · ancl corduroys ; 

Bleached wicl0 heetings, sheets, pillow case dyed ducks; 

U nbleachecl, bleached, color d, dyed and printed flannels, 

suedes and duveteen ; 

(5) 
6 

Outerwear material such as mineral and sulphur khakis, 

ducks, summer suitings, pantaloonings, raincoatings, waterproof clothing fabrics, and all other converted fabrics for 

similar purposes; 

Towelling, crashes, and plain bleached Terry Cloths; 

Table damask and napkin fabrics; 

Birdseye and diaper cloths. 

IV. All members of this branch of the Industry insofar as their 

activities fall within any of the divisions enumerated in Section III 

hereof shall comply with the following general rules of trade practice: 

1. The secret payment or allowance, directly or indirectly, or by 

any scheme, method, or device, of rebates, refunds, commissions, 

credits, or unearned discounts, whether in the form of money or 

otherwise, or the secret extension to certain purchasers of special 

services or privileges not extended to all purchasers on like terms 

and conditions is prohibited. 

2. The false marking or branding of any product which has the 

tendency to mislead or deceive customers or prospective customers 

in any way whatsoever is prohibited. 

3. The imitation of a trade mark, trade name, slogan, or the other 

marks of identification of competitors, having the tendency and 

capacity to mislead or deceive is prohibited. 

4. Upon approval of the Administrative Committee of a plan of 

registration, members of this branch of the Industry may register 

with the Textile F abrics Association the following: Jacquard designs, twenty-harness dobby designs, prints, and such other designs 

or styles as may be considered as novel. Upon registration, such 

designs or styles shall be confined to the registrant for a six-month 

period and for an additional six months thereafter, if within the 

first six-month period the registrant can demonstrate to the satisfaction of the Administrative Committee that he has caused the 

manufacture in further quantity of said design, pattern, or style. 

At the end of the second six months' ownership period, the registrant 

may obtain renewals of all rights to such design, pattern, or style 

by semiannual re-registration. A proper registration fee will be 

determined by the Administrative Committee. 

No member of this branch of the Industry shall commit or be a 

party to the piracy of any design, pattern, or style originated by 

another member of the Industry in a form sufficiently like the 

original to be mistaken for it, or the sale thereof, or sell br quote 

on the pattern, design, or style of another member of the Industry. 

V. Members of this branc!i- of the Industry insofar as their activities fall within any of the divisions described in Section III shall 

comply with the particular rules applicable to such divisions as 

follows: 

DIVISION 1 

CLOTHIERS' LININGS (OTHER THAN ALL COTTON) 

DEFINITION 

The products included in this Division are body and/ or sleeve linings ( other than all cotton) for use by manufacturers of men's and 

boys' clothing, and also by book tailor and trimming establishments. 
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TRADE PRACTICES 

1. Term.s of sale shall not exceed net 60 E.O.M., except that bills 

on and after the 25th of the month may be dated as of the 1st of the 

following month. Anticipation may be allowed at a rate not to 

exceed 6% per annum. Sample pieces shipped on memorandum 

shall be billed retroactively as of date of shipment. 

Where, subsequent to date of sale, a credit situation previously 

unknown to seller, should render impossible adherence to this Section, these provisions may be relaxed upon approval of application 

to Divisional Committee. 

2. Delvveries.-All goods shall be sold F.O.B. finisher or main 

office registered with the Textile Fabrics Association. 

3. Unifonn Oontract.-The provisions of a sales note recommended by the Divisional Committee and the Administrative Committee, when approved by the Code Authority and the Administrator, shall be used and adhered to on all sales for future delivery. 

4. The Divisional Committee may make recommendations: (1) For 

the use by all members of the Division of a system of cost accounting 

at least as detailed and complete as a standard system of cost accounting adopted by the Divisional Committee. (2) For regulation of 

sale below cost when and if same n1.ay be so determined, but nothing 

herein contained shall limit the right to sell seconds, out-of-fashion, 

distress, and shopworn goods, when so billed. 

Such recommendations (numbers 1 and 2, supra) when approved 

by the Administrative Committee, the Code Authority, and the 

Administrator, shall have the same force and effect as the other 

provisions of this Supplemental Code. 

The above-mentioned recommendations must be communicated by 

the Divisional Committee to dl members of said Division not less 

than ten days prior to date of submission of Divisional Con1.mittee's 

recommendations to the Administrative Com1nittee or other superior 

agency. 

5. No merchandise may be sold on consignment, nor may any 

method of selling be used which has the effect of selling on consignment or memorandum. Sample pieces to manufacturers for irrspection are exempt from the application of this rule. The Divisional 

Committee shall have the power to suspend the operation of the 

provisions of this Section. 

6. No stock protection or price guarantee shall be given. 

7. Sales offices shall not be open for the transaction of business on 

Saturdays and Sundays. 

DIVISION 2 

CORSET, BRASSIERE, AND ALLIED TRADES FABRICS 

DEFINITION 

The products included in this Division are those sold for use in 

the manufacture of corsets, girdle corsets, tep-in corsets, brassieres, 

bandeaux-brassieres, corsets, girdle corsets, or step-in corsets attached 

to brassieres or bandeaux-bras ieres and all similar body-supporting 

garments, and in the manufacture and supply of accessories such as 
8 

shields, stripping, binding, tabs, hook-and-eye cloth, etc., cut from 

converted cloths, entering into or used with such finished products. 

TRADE PRACTICES 

1. Terms of sale shall not exceed 2%-10 days, 60 extra; or 3%-10 

days, or 3%-C.O.D. No extra dating shall be allowed. Anticipation shall be at legal rate of interest. Past due payments shall carry 

interest at legal rate from date of maturity. 

2. Deliveries.-All goods shall be sold F.O.B. point of origin. 

In the cuse of shipments from finished stock carried in New York 

City the point of origin is the bleachery, d_ye works, and/ or finishing plant at which the goods were processed. 

3. Unifo1•1n Oont?·act.-The provisions of a sales note recommended 

by the Divisional Committee and the Administrative Committee, 

when approved by the Code Authority and the Administrator, shall 

be used and adhered to on all sales for future delivery. 

4. Sample R equirenients.-Each sample cut in excess of one-half 

yard in length furnished customers shall be charged for at regular 

sales price of' the fabric. 

5. No merchandise may be sold on consignment, nor may any 

method of selling be used which has the effect of selling on consignment or memorandum. Sample pieces to manufacturers for 

inspection are exempt from the application of this rule. The Divisional Committee shall have the power to suspend the operation of 

the provisions of this Section. 

6. No stock protection or price guarantee shall be given. 

7. Sales offices shall not be open for the transaction of business 

on Saturdays and Sundays. 

8. With respect to goods made entirely from synthetic yarns or 

goods made from synthetic yarns mixed only with silk and produced by the seller's own manufacturing facilities, the applicable 

provision of the Silk Textile Code with respect to terms of sale and 

delivery may be substituted for the provisions of terms of sale and 

delivery for this Division. 

DIVISION 3 

ALL-COTTON CLOTHING LININGS 

DEFINITION 

The products included in this Division are all-cotton clothing linings for use by manufacturers of men's and boys' clothing, tailor 

trimming houses, and book tailor and trimming establishments. 

TRADE PRACTICES 

1. Terms of sale shall not exceed 2%, 60 days, E.O.NI. 3%, 10 

days, E.O.~1. Goods shipped on or after the 25th of the month may 

be billed as of the 1st of the following month. Interest at the rate of 

6% per annum shall be charged on all accounts past due. Sample 

pieces shipped on memorandum shall be billed retroactively as of 

date of shipment. 
2. Deliveries.-All goods shall be sold F.O.B. mill, with the exception of sales made from. open stock at main office, shipping point, 

or established main depository which may be made F.O.B. such 

main office, shipping point, or established main depository, provided 

it is registered with the Textile Fabrics Association. 

3. Uniform, Oontraot.-The provisions of a sales note recommended 

by the Divisional Committee and the Administrative Committee, 

when approved by the Code Authority and the Administrator shall 

be used and adhered to on all sales for future delivery. 

4. The Divisional Committee may make recommendations: (1) 

for the use by all members of the Division of a system of cost 

accounting at least as detailed and complete as a standard system 

of cost accounting adopted by the divisional Committee, and (2) for 

regulation of sales below cost when and if same may be so determined. Such recommendations, when approved by the Administrative Committee, the Code Authority, and the Administrator, shall 

have the same force and effect as the other provisions of this Supplemental Code. 

5. Prioe Reporting.-,Vithin thirty days after a majority vote 

of this Division, all members thereof shall file with the Textile Fabrics Association a schedule of prices and terms covering the sale 

of their standard numbers sold in the previous week; such schedule 

to specify prices on different items ( classified according to quantity 

thereof), as may have been voted upon by the Division. 

Such reports shall be prepared in summary form and submitted 

in this form to each member of the Division in such a manner as 

not to divulge the operations of any individual member. The Divisional Committee shall have the power to suspend the operation 

of the provisions of this Section. All members of the Division shall 

be notified by telegraph if the provisions of this Section are so 

suspended. 

6. No merchandise may be sold on consignment, nor may any 

method of selling be used which has the effect of selling on consignment or memorandum. Sample pieces to manufacturers for 

inspection are exempt from the application of this rule. The Divisional Committee shall have the power to suspend the operation o:f 

the provisions of this Section. 

7. No stock protection or price guarantee shall be given. 

8. • Sales offices shall not be open for the transaction of business on 

Saturdays and Sundays. 

DIVISION 4 

CURTAIN AND DRAPERY FABRICS 

DEFINITION 

The products included in this Division are converted cotton and 

cotton mixture curtain and drapery fabrics, including these same 

:fabrics when sold to other cutting trades and/ or wholesale, retail, 

chain stores, and/ or mail-order distributors; but exclusive in all 

cases of cloth manufactured on bobbinette or lace machines. 
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TRADE PRACTICES 

1. Terms of sale to the manufacturing, chain-store, mail-order, 

and retailers trade shall not exceed 2%, 10 days, 60 extra, or 3%, 10 days; no extra dating. Goods shipped on and after the 25th of 

the month may be billed as of the first of the following month. 

Terms of Sale to jobbers shall not exceed 2%, 10 days, 60 extra, or 

3%, 10 days; June deliveries may be billed 2%, 10 days October 1st; 

December deliveries may be billed 2%, 10 days April 1st. 

2. Deliveries.-All goods sold to wholesalers, jobbers, chain stores, 

mail-order houses, and manufacturers shall be sold F.O.B. mill. All 

goods sold to retailers shall be sold F.O.B. mill or main warehouse, 

provided the location of such main warehouse shall be registered 

with the Textile Fabrics Association. 

3. Sample R equirenients.-Any form of sample requirement may 

be supplied free only to wholesalers and not to exceed 2% of the 

original order. All other sample requirements shall be charged for 

at full cost, calculating fabric at sales price, and shall include delivery charge; provided that it is permissible to furnish one set of 

re.ference samples without charge to each district office of chainstore organizations where such district offices exist, or one set to the 

main office of any chain organization not having district offices. 

Only one swatch less than 11⁄2 yards in length of any one style shall 

be given free to one customer. All swatches above 11⁄2 yards shall 

be paid for at sales price of the fabric. 

4. Advertising Allowances.-N o advertising allowances are permitted. 

5. No merchandise may be sold on consignment, nor may any 

method of selling · be used which has the effect of selling on · con-

,signment or memorandum. Sample pieces to manufacturers for 

inspection are exempt from the application of this rule. The Divisional Committee shall have the power to suspend the operation of 

the provisions of this Section. 

6. No stock protection or price guarantee shall be given. 

7. Sales offices shall not be open for the transaction of business on 

Saturdays and Sundays. 

DIVISION 5 

SHIRTINGS 

DEFINITION 

The products included in this Division are shirting fabrics for 

use by manufacturers of shirts pajamas, underwear, boys' blou,ses, 

and similar wearing apparel, including these ame fabrics when sold 

to other cutting trades and/ or wholesale, retail, and/ or mail-order 

di tributors. 

TRADE PRACTICES 

1. Terms of Sale shall not exceed 2% , 10 days, 60 extra, or 21⁄2%, 

10 days, 30 extra, or 3% C.O.D., or 37<, 10 days, effective from date 

of invoice or shipment, whichever is earlier, no extra dating. 

Interest shall be charged at 6% on all past due accounts, such 

charge starting at maturity period. 
11 

Anticipation may be allowed at a rate not to exceed 6% per 

annum. 

2. Ddiveries.-Ail goods shall be sold F.O.B. point of origin. 

3. Sample Reqwire1nents.-Ail sample requirements including sample cuts shall be charged to customer at full cost; fabric to be figured 

at sales price. Reference sets not to exceed three (3) in number may 

be furnished free; size of swatches not to exceed 2 X 4" and not to 

be mounted on customer's cards; all reference sets to be plainly 

marked "For Reference Only." 

4. Advertising Allowances.-Fabric demonstration, or allowance 

therefor, or advertising allowances in any form whatsoever, are prohibited. 

5. Options.-No options shall be given. 

6. Sale of Goods by Oonstruction.-When finished goods are sold 

on basis of grey construction, grey width, count and weight, shall be 

shown on confirmation of order and invoice. 

7. No merchandise may be sold on consignment, nor may any 

method of selling be used which has the effect of selling on consignment or memorandum. Sample pieces to manufacturers for in~pection are exempt from_ application of this rule. The Divisional Committee shall have the power to suspend the operation of the 

provisions of this Section. 

8. No stock protection or price guarantee shall be given. 

9. Sales offices shall not be open for the transaction of business on 

Saturdays and Sundays. 

10. With respect to goods made entirely from synthetic yarns or 

goods made from synthetic yarns mixed only with silk and produced 

by the seller's own manufacturing facilities, the applicable provisions of the Silk Textile Code with respect to terms of sale and 

delivery may be substituted for the provisions of terms of sale and 

delivery for this Division. 

DIVISION 6 

WASH GOODS 

DEFINITION 

The products included in this Division are wash goods for use by 

manufacturers of men's, women's, and children's apparel including 

these same fabrics when sold to other cutting trades and/or wholesale, retail, and/ or mail order distributors. 

TRADE PRACTICES 

l. Terms of Sale shall not exceed 2%, 10 days, 60 extra, or 21⁄2%, 

10 days, 30 extra, or 3% C.0.D., or 3%, 10 days, effective from 

date of invoice or shipment, whichever is earlier; no extra dating 

to be allowed. Interest shall be charged at 6% on all past due 

account , such charge starting at maturity of bill. Anticipation may 

be allowed at a rate not to exceed 6% per annum. 

2. Deliveries.-All goods shall be sold F.0.B. point of origin, with 

the exception of goods sold to retailers and chain stores which shall 

be sold F .0.B. plant or main warehouse registered with the Textile 

Fabrics Association. 
12 

3. Sample Requireme7:ts.-All sa:giple requirements furnished jobbers, catalog houses, chain stores and manufacturers, shall be charged 

at full cost, calculating fabric furnished at sales price. Reference 

sets not to exceed three in number to any one customer may be furnished free of charge on request. 

4. Advertising Allowanoes.-Fabric demonstration, or allowances 

therefor, or advertising allowances in any form, shall be prohibited. 

5. Options.-N o options shall be given. 

6. No merchandise may be sold on consignment, nor may any method 

of selling be used which has the effect of selling on consignment or 

memorandum. Sample J?ieces to manufacturers for inspection are 

exempt from the applicat10n of this rule. The Divisional Committee 

shall have the power to suspend the operation of the provisions of 

this Section. 

7. No stock protection or price guarantee shall be given. 

8. Sales offices shall not be open for the transaction of business on 

Saturdays and Sundays. 

9. vVith respect to goods made entirely from synthetic yarns or 

goods made from synthetic yarns mixed only with silk and produced 

by the seller's own manufacturing facilities, the applicable provisions 

of the Silk Textile Code with respect to terms of sale and delivery 

may be substituted for the provisions of terms of sale and delivery 

for this Di vision. 

DIVISION 7 

INTERLININGS 

DEFINITION 

The products included in this Division are fabrics made from 

tobacco cloths, print cloths, sheetings, twills, drills, osnaburgs1 and 

ducks, but only where these finished fabrics are used for interlining 

purposes for garments. 

TRADE PRACTICES 

1. Term,s of sale shall not exceed 2%, 10 days, 60 extra, or 3%, 10 

days, or 3% C.O.D., effective from date of invoice or shipping memorandum, whichever i.s the earlier. No extra dating shall be al,lowed. 

Anticipation shall be at the legal rate of interest. Past due payments shall carry interest at the legal rate from. date of maturity. 

2. Deliveries.-All goods shall be sold F.0.B. point of origin. In 

the case of shipments from finished stock carried in New York City, 

the point of origin is the bleachery, dye works, and/or finishing 

plant at which the goods were processed. 

3. No merchandi e may be sold on consignment, nor may any 

method of selling be used which has the effect of selling on consignment or memorandum. Sample pieces to manufacturers for inspection are exempt from the application of this rule. The Divisional 

Committee shall have the power to su pend the operation of the 

provisions of thi. Section. 

4. No stock protection or price guarantee shall be given. 

5. Sales offices shall not be open for the transaction of business 

on Saturdays and Sundays. 
13 

VI. Adniinistration.-For the purpose of the general administration of the divisions enumerated in Article III, there shall be con- stituted by the Code Authority an Administrative Committee which 

shall have such duties and powers as the Code Authority may 

delegate. 

There shall be established by the Administrative Committee a 

Divisional Committee in each of such divisions with such duties and 

powers in each case as the Administrative Committee may delegate. 

The Administrator shall have the right to appoint not more than 

three members, without vote, to the Administrative Committee and 

the Divisional Committees who shall serve without expense to the 

Industry. 

If the Administrator shall determine that any action of the Administrative Committee or a Divisional Committee or any agency 

thereof is unfair or unjust or contrary to the public interest, the 

Adminstrator 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 Administrative Committee or Divisional Committee or 

agency pending a final action, which shall be taken only upon 

approval by the Administrator. 

VII. The provisions for trade practices prescribed in Article IV 

and V hereof are subject to such changes, modifications, and additions as may be recommended to the Code Authority by the Administrative Committee and approved by the Administrator, but no 

change affecting a division shall be submitted for the approval of 

the Administrator without the approval of the Divisional Committee of the Division affected. 

VIII. The Code Authority may from time to time establish such 

additional divisions dealing with other activities of this branch of 

the Industry as may seem desirable and, subject to the approval of 

the Administrator, may provide for the formulation of such trade 

practices applicable to such additional divisions and for their administration in such manner as may seem desirable. 

IX. Me1nbers of the Industry approve of the policy of arbitrating 

all disputes wherever possible and the Administrative Committee 

is hereby designated the agency to assist in bringing about such arbitration as to any matters arising in the Divisions enumerated in 

Article III. 

X. This Supplemental Code and all the provisions thereof are 

expressly made subject to the right of the President, in accordance 

with the provisions of subsection (b) of Section 10 of the National 

Industrial Recovery Act, from time to time to cancel or modify any 

order, approval, license, rule, or regulation issued under Title I of said 

Act, and specifically, but without limitation, to the right of the 

President to cancel or modify his approval of this supplemental code 

or any conditions imposed by him upon his approval thereof. 

XI. This Supplemental Code shall become effective on the second 

Monday after its approval by the President of the United States. 

Approved Code No. 1-Supplement No. 1. 

Registry No. 29'9-25. 

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UNIVERSITY OF FLORIDA 

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