Approv d ode No. 342 

NATIO AL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY AND WATERPROOF 

SPECIALTIES MANUFACTURING 

INDUSTRY 

AS APPROVED ON MARCH 17, 1934 

WE DO OUR PART 

U ITED STATES 

GOVERNME. T PRI TI G OFFICE 

WASHI GTO : 1934 

I 

I 

For sale by the operintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Goverument 

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

Foreign and Domesti<: 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. 

Detrnit, Mich. : 801 First National Bank Building. 

Hou ton, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chambet· of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South Broadway. 

Loui ville, Ky.: 408 Federal Building. 

l\lemphis, Tenn. : 229 Federal Building. 

Minneapoli , 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, Wash.: 809 Federal Office Building. 
Approved Code No. 342 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY AND WATERPROOF SPECIALTIES 

MANUFACTURING INDUSTRY 

As Approved on March 17, 1934 

ORDER 

CoDE oF FAIR CoMPETITioN FoR THE SANITARY ,'\.ND ,v ATERPRooF 

SPECIALTIES JY.lANUF ACTURI.r G 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 Code ol 

Fair Competition for the Sanitary and ,v aterproof Specialties Manufacturing 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: 

OW THEREFORE, on behalf of the Pre ident of the United 

States, I Hugh S. J ohrrson, Administrator for Industrial Recovery, pursuant to authority ested in me by E xecutive Orders of the Presi- dent, 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 provi ions 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. 

HuaH S. JoHNso ... , Administrator for Industrial, Recovery. 

Approval recommended: 

A. D. w HITESIDE, 

Division Administrator. 

w . HI ""GTON, D.C., 

March 17, 1934. 

47018°-4.25-98-84 (169) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The W liite H o·use. 

Srn: The Public Hearing on the Code of Fair Competition for 

the Sanitary and vVaterproof Specialties Manufacturing Industry 

as proposed by the Sanitary and Waterproof Specialties and Manufacturing Association was conducted in Washington, D.C. on 

November 20, 1933. 

Every person who requested an appea~ance was fairly heard in 

accordance with regulations of the National Recovery Administration. The Code has the approval of the Labor, Industrial, and 

Consumer's Advisory Boards of the National Recovery Administration, and of the Legal Division. The Code Committee of the 

sub1nitting Association has also approved the final draft to the 

Code. 

DESCRIPTION OF THE INDUSTRY 

The ·Industry, as defined in the Code, includes the manufacture 

of waterproof crib sheets, baby pants, dress shields, women and 

children's household aprons, women's sanitary lingerie and related 

products; and the 1nanufacture of the rubber, rubberized or stockinette 1naterials which constitute the waterproof elements of these 

articles by any 1nanufacturer of the above mentioned products, 

whether for use in such manufacturer's own finished products or 

for sale to another manufacturer of such finished products. The 

products included within the scope of this Code are personal items 

for household use and personal attire; each embodies in whole or 

in part material having a sanitary or waterproof quality. 

The industry centers in the Eastern Seaboard States, and the 

majority of the concerns are located within one hundred miles of 

New York City. The Industry performs both a manufacturing and a converting 

or assembling function. The manufacturing function has to do 

with the production of the sanitary or waterproof elements; and the 

~onverting or assembling function comprises the combination of these 

sanitary and waterproof elements with other material or materials. 

A majority of the manufacturers in the Industry perform both of 

these functions, but there are some whose operations are limited 

entirely to that of converting or assembling. 

The submitting Association represents 64 percent of the industry 

by membership and 75 percent of the industry by volume of business. 

There are approximately 2,500 employees in the Industry today, 

roughly 20 percent more than were employed in the Industry on 

August 1st of last year. 

(170) 
171 

LABOR PRO IO - P IBLE REEMPL fE T 

HOU?' .-Ac ordin~ to figur uppli d b the o iation, approximate! p r e nt of the total numb r of mpl in the Indu try 

in Jul f 1929 were or king in x s of 4 hour p r we k; and 

approximately O perc nt of the total number of employe were 

employ d upon a ha i of 4 or more hour p r w k durin the arly 

month of 1933. This may be regard d a the t pical work we k of 

the Indu tr . The 40 hour w k provided in the ode a appro ed 

will ne itate the emplo ment of approximat ly 20 p rcent additional mployees in the Indu try. 

Wage .-,\Tide variations in the wage scale have xi ted throughout 

the Indu try in the past. Wages a low a 20¢ per hour were paid 

in July 1929 with 92 percent of the total number of employees working in plants where the minimum rate of pay was from 20¢ to 25¢ 

per hour. During the first six month of 1933, 1 percent of the 

total employees were engaged in plants where minimum rates of 

from 11¢ to 25¢ per hour prevailed. Although the total increa e in 

payrolls which this Code will require cannot be accurately estimated, 

1t is safe to assume that the 35¢ minimum rate established repre ents 

on the average a 40 percent increase in the minimum rates of pay for 

firms employing 81 percent of the total employees in the Indu try. 

Home work.-While home work has not been u ed extensively 1n 

recent years it has been utilized to some extent. Its elimination 

will make possible the effective enforcement of the Labor provisions 

of the Code. 

RESUME OF THE CODE 

Article I gives the purpose of the Code. 

Articl II sets forth certain definitions. 

Article III contains a maximum hour provision of the Code. 

Article IV e tablishes a minimum wage for all employees of the 

industry. 

Arti l sets forth the general labor provisions. 

Article I provides the general organization of the Code Authority, and defines its powers. 

rti 1 VII defines Trade Practices which are unfair and shall be 

elim.inat cl. 

rti le v III pro ide for the m dification of the ode in accordance with ection 10 (b) of the ational Recov ry ct. 

rti le IX tate that thi ode hall not permit monopolies. 

rticl .... r pr vid for th elimination of home work. 

rti le J. I p cifies the effective date. 

Th puty dmini tra tor in hi final r eport to me on aid Code 

havin<Y faun 1 a h r in s t forth and on the ba i of all th proce din~ in thi ma t r ; 

1 fin 1 that: 

(a) aid de is well d i (Yn d to prom te the polici and purpos f Title I of the ational Industrial R covery t, including 

remo al of ob truction to th fr e flow of inter tate and foreign 
172 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of 

industry :for the purpose o:f cooperative action among the trade 

groups, by including and maintaining united action of labor and 

management un ler adequate goyernmental sanctions and supervi-

~ions, by eliminating unfair ompetitiYe practice, by promoting the 

:fullest po ible utilization of the pre ent production capacity of 

Indu. -trie., by a-voicling undue restriction of production ( except as 

may be temporarily required), by increasing the consumption of 

indu trial an l agricnltural product through increasing purcha ing 

power, by reducing and relieving unemployment, by improving 

·tandarcls of labor, an<l by otherwise rehabilitating industry. 

(b) Sail industry normally employs not more than 50.000 employees; and is not classified by me as a major indu. try. 

( ·) The Code a · approYed complies in all re pects with the 

pertinent pr Yi -·ion · of said Title of , aid Act, including without 

limitation Subsection (a) of Se tion 3, Subsection (a) o.f Section 7, 

and Sub ection (b) of Section 10 thereof; and that the applicant 

association is an industrial as ociation truly representative of the 

aforesaid ind ustry; and that said a ·ociation impo, es no inequitable 

restricti01L on admission to member hip therein. 

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

or monopolistic praetices. ( e) The Code is not de igned to and will not eliminate or oppres,s 

sm.all enterpri. ·es and will not operate to discriminate again t them. 

(f) Those engaged in other teps of the economic process have not 

been deprived of the right to be heard prior to approval of said 

Code. 

For the e rea . on the Code ha,· been approved. 

Re pectfully, 

MARCH 17, 1934. 

HUGH S. JOHNSON, 

Adrnfrii.strrdor. 
ODE OF F IR OMPETITIO FOR THE S IT RY ND 

W TERPROOF PE I LTI , ~IAN F CT RI G I -

D TRY 

RTI LE I-PURPO ES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act the following pro vi ions are e ta bli hed a. a ode of 

Fair Competition for the Sanitary and vVaterproof Specialties Manufacturing Industry and hall be the standartl of fair competition 

for this indu try and shall be binding on every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "industry" as used herein includes the manufacture 

of waterproof crib sheets, baby pants, dress shield women s and 

children hou ehold apron , women's sanitary lingerie and related 

product ; and the manufacture of the rubber, rubberized, or stockinette material which constitutes the waterproof elements of the e 

article by any manufacturer of the aboYe mentioned products 

whether for u e in such manufacturer own finished products or for 

sale to another manufacturer of such finished products. 

2. The term ' employees " as u ed herein includes anyone engaged 

in the indu try in any capacity receiving compensation for his 

service irre pective of the nature or method of payment of such 

compen ation. 3. The term 'employer as used herein includes anyone for who e 

hen fit or on who e bu ines uch emplovee i eno-aged and anyone 

engaged jn aid indu try on hi own behalf. 

4. Th term ' member of th indu try ' include an one engaO'ed in 

the indu try a define l, eith r as an employer or on hi own behalf. 

5. Th term t and ' \.drnini trator a u ed herein hall 

mean, re.spectiv ly Title I of the ational In lustrial Recovery Act, 

and the dmini trator for Industrial Recovery. 

RTICLE III-HoUR 

mploy hall be I ermitt€d o work in exc·e s of forty ( 40) 

hour in any one week, ex pt as h reinafter provided . . E a h emplo ee may b permitted to work a maximum of even - irrht ('"' ) hours in a h al ndar year in xce s of the forty 

( 40) lour per w ek provided for in the foreo-oino- ection · provided 

that in no nt hall any em1 loyee be permitt d to work more than 

ei ht ( ) additional hour in any one w ek, and provided further 

ha all hours worked in cxce s of forty ( 40) hour in any one 

week b an mpl ee ·hall be paid for at the rate of one and onethird tim t1 e r gular weekly or pi e-work rate. 

(173) 
174 

3. The provisions of this Article shall not apply to employees engaged in an executive or upervisory capacity~ ean1ing thirty-five 

( $35.00) dollars per week or more; nor to out icte salesmen. 

4. No office employee hall be permitted to work in excess of 

forty (40) hours per week averaged over a period of a month, nor 

more than forty-eight (48) hours in any one (1) week. 

5. Stock clerks, shipping clerks, and outside crews hall not be 

permitted to work in excess of forty-four (44) hours in any one 

week. 

6. Engineers, firemen, repair hop crews, electricians and watchn1en shall not be permitted to work in exces of forty-eight ( 48) 

hours per week. 

7. No member of the Indu try shall knowingly engage any employee for any time which, when totaled with that already performed with another member or members of the Industry, exceeds 

the maximum permitted herein. 

ARTICLE IV-WAGES 

1. No e1nployee shall be paid at less than the rate of thirty-five 

(35¢) cents per hour, except as hereinafter provided. 

2. This Article establishes a minimum rate of pay, regardl~ of 

whether an employee is compensated on a time ra.te, piece rate, or 

other basis. 

3. No apprentice shall be paid less than at the rate of twentyeight (28¢) cents per hour for the first six weeks of employn1ent 

and thereafter not less than at the minimum rate provided in Section I of this Article. Any time worked by an apprentice . hall be 

deemed a part of such apprenticeship period, whether uch time is 

worked continuously or at 1nore than one job or for more than 

one employer. In no case shall the total number of apprentices in 

the employ of any one einployer exceed five ( 5%) percent of the 

total number of employees. 

4. A person whose earning capacity is limited becau e of age, 

physical or mental handicap, or other infirmity, may be employed 

on light work at a wage below the minimum established by a Code, 

if the employer obtains from the state authority, de ignate l by the 

United States Department of Labor, a certificate authorizing uch 

person's employment at such wages and for such hours as hall 

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

instructions of the United States Department of Labor in issuing 

certificates to such persons. Each employer shall file monthly with 

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

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

such employee. 

5. No employer shall reduce the weekly rate of compensation for 

any employee, in effect as of July 1, 1933, whether heretofore paid 

on a monthly,. weekly, daily, hourly or piece-rate basis, notwithstanding that the hours of such employee have been reduced by the 

provisions of this Code. This provis10n shall not be construed to 

mean that employees employed on a part-time basis shall receive the 

same weekly compensation as full time employees, nor shall it apply 

to watchmen. 
ARTICLE V1. 

175 

duti of occuubterfuO' o as 

to 

ARTICLE VI- DMl l TRATIO 

T further ff r.tuat of the A t a cl uthority 

i h reb on titut d t with th A<lmini trat r in the 

admini trati n f thi 

1. OUGA ~ ~IZ_-\. Tl 4 - A I) ' X 'TIT TI ., OF THE 'ODE TH RITY 
176 

mentioned to comprise the Code Authority for this Industry. In 

addition thereto the Administrator may appoint three (3) members· without vote and without expense to the Industry to represent the 

National Recovery Administration. Such members appointed by the 

Administrator shall be given notice of and may sit in all meetings 

of the Code Authority. 

(b) Each trade or industrial association directly or indirectly 

participating in the election or activities of the Code Authority 

shall: 

(1) Impose no inequitable restrictions on membership, and (2) 

submit to the Administrator true copies of its Articles of Association, By-Laws, regulations, and any amendments, when made thereto, 

together with such other information as to membership, organization, and activities as the Administrator may deem necessary 

to effectuate the purposes of the Act. 

( c) In order that the Code Authority shall at all times be truly 

representative of the industry and in other respects comply with 

the provisions of the Act, the Administrator may provide such 

hearings as he may deem proper; and thereafter if he shall find 

that the Code Authority is not truly representative 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 Code 

Authority. 

( d) The Administrator shall entertain complaints and provide 

such hearings as he may deem proper for those claiming the right 

to be represented on the Code Authority, and shall have the right 

from time to time to change the method 0£ selection and the organization selecting the members of the Code Authority, in order that it 

shall be truly representative of the industry. 

( e) If the Administrator shall determine that any action of the 

Code Authority or any agency thereof may be 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 and further consideration by such 

code authority or agency pending final action which shall not be 

effective unless the Administrator approves or unless he shall fail 

to disapprove after thirty days' notice to him. of intention to proceed with such action in its original or modified form. 

2. Members of the industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority by assenting 

to and complying with the requirements of this Code and sustaining 

their reasonable share of the expenses of its administration. The 

reasonable share of the expense of the administration shall be determined by the 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 to be taken into consideration. 

3. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act: 

(a) To elect officers and to assign to them such duties as it may 

consider advisable, and to provide rules for its procedure, for the 

selection of its members, and its continuance as the administrative 

agency of this Code, in accordance with the terms of the Act and the 

principles l1erein set forth. 
177 

(b) To receive, inve~tigate, and adjust complaintr:i of Yiolntions of 

this Co<le~ and based upon such investigation and after such hearin 

as jt may deem proper. to make recommendations in rC'sped theret 

to the proper authorities for the prosecution of s uch violations. Th 

appbcation of this section shall at all times be subject to rules and 

regulations issued by the Administrator. 

( c) To obtain through a confidential agency from meml.K'rs of th 

industry periodical reports in such form and at such times ,vith re-

.;pect to wages. hours of labor: conditions of employment, number of 

mployees, and such other matt~rs pertinent to the purposes of this 

Code as the Code Arrthority, with the approval of tl1e Adm:ni::,,trator, 

may require for the administration ancl enforcement of this Code, 

and to submit report:-; to the Administrator in such form a11cl at such 

times as he may require in order that the President may be informed 

as to the obserYance or nonobse:rvance of this Code and to further 

ffectuate the policies of the Act. The confidential agency ~hall be 

in no way engaged in the industry nor <.:onnectell with any memher 

thereof, and all reports received by it shall be held as secret and confidential, except that they shall be made available to the A(lministrator. Such agency shall analyze, digest-and consolidate s11C'h reports 

anc.l shall disclose only general findings ba.secl thereon. Such general findings shall be made available to the Code Authority and such 

members of the industry as have assented to this Code. 

( d) To use such trade associations and other agencie:-. n:-- it deem 

proper for the carrying out of any 0£ its activities provided for 

herein, and to pay such agencies the cost thereof, proYided that 

.,,uch agencies shall at all times be subjBct to and comp1y vvith the 

pronsions of this Code, and provided further, that nothing herein 

shall relieYe the Code Authority of any of its duties and responsibilities hereunder. 

( e) To coorr1inate the administration of this Code with such 

other codes, if any. as may be related to the Sanitary an(1 ,v aterproof Specialties ~Ianufacturing Industry or any subdiYision thereof. with a Yiew to promoting joint and harmonjous action upon 

matters of common interest. 

(f) To make recommendations for fair-trade practices and other-

,,ise to assist the Administrator in effecting the purpose of thjs Cod 

ancl the Act. Any su ch recommendation upon the approYal o:f th 

dministrator after such hearing and notice as he shall prescribe, 

shall become a part of this Code. 

(g) To provide for a special N.R.A. insignia for the industry 

and to cooperate with the Administrator in regulabng the use of 

f:uch insignia solely by those employers who haYc a~~entecl to and 

arc complying with this Code. 

(h) To proYiclc ways and means for financing the operation of 

,..;aid Cocle Authority an1l to determine an equitable metho1l of apportioning in the industry the cost of administering this Code. :Money 

ra ise<l in any manner shall not exceed in amount such rensona.bl 

·ost. 

(i) To cause to be formulated an ac·connt1ng syf>lem and method 

of co~t finding ancl/ or estimating capable of use by all members of 

the industry. ~\fter such system and nwthods have been formulated 

fu1l detaj]~ concerninu them shall be made aYailable to all member..,. 
178 

Thereafter all members shall determine and/or estimate costs in 

accordance with the principles of such methods. The application 

of this provision shall be subject to the approval of the Administrator. 

4. In addition to the information required to be submitted to the 

Code Authority, all members of the industry shall furnish such additional information as the Administrator may deem necessary for the 

purposes recited in Section 3 (a) of the Act to such federal and state 

agencies as the Administrator may designate. Nothing in this Code 

shall relieve any one of any existing obligation to furnish reports 

to government agencies. 

ARTICLE VII-TRADE PRACTICES 

1. Customers shall be classified as follows: (a) Wholesale merchants; (b) Retail Merchants purchasing direct from the manufacturer ; ( c) Chain stores ; ( d) Mail order houses; ( e) l\1anufacturer's Sales agents. The Code Authority may from time to time 

modify, amplify and/ or define the foregoing customer classifications 

subject to the right of approval by the Administrator. 

2. Any member of the Industry who markets any or all of his 

products through sales agencies or comn1ission men and who retains 

title to such products, shall make it a condition that such sales 

agencies or commission men agree to be bound by and comply with 

all trade practice provisions of this Code to the same extent as 

applies to and is required of a member of the industry. 

3. (a) Each member of the Industry shall publish a schedule of 

its prices and terms of sale on all standard products manufactured 

and sold by it to each of the classes of customers as enumerated in 

Section I. Each published schedule shall contain the statement 

that the prices therein are subject to change without notice. 

(b) Immediately upon the adoption of a new schedule of prices 

each member of the industry shall file such new schedule with the 

Secretary of the Code Authority. All information in such price 

lists shall be made available to members of the industry, and upon 

request the Secretary shall furnish price information to any member 

of the industry and/or shall supply to any purchaser of products 

of this industry price information relative to the customer classification to which such purchaser belongs. 

( c) All :prices and terms of sale in such price schedule shall become effective on the day of announcement and all shipments shall 

be billed at prices in effect on date of shipment, except as hereinafter provided. 

When any member of the Industry announces a new price schedule showing increased prices, such member ma.y invoice in accordance with the previous price schedule, any unfilled orders or portions thereof ta.ken prior to the date of such announcement and which 

are shipped within fifteen (15) calendar days after the date of the 

announcement of the new price schedule. If at the end of the fifteen 

(15) calendar days the member of the Industry shall have on hand 

any remaining unfilled orders or portion thereof which were taken 

prior to the date of such announcement, such member shall give each 

purchaser the option of cancelling such unfilled order or portion 
179 

th r of or of ac pting i ed in a orJan 

th price sch dule in -eff t on dat of uch hipment. 

This provi ion hall not appl to ord r a cept d b an m mber 

f th Indu try prior to the ffe tive lat of thi o l . 4. Ea h member f th indu try hall furnish the od nth rity 

with a li t ho in()' point of oriO"in f goo l manufactur cl b. it 

and an and all cities an l town to which tran ·portation harae , 

or anj I art th reof ar allow d. ~. T rm £ al on all m r chandi shall not ex ee<l ca. ·h lis• 

count of two (2 ) per cent ten day E.O.M. Invoice rendered. f r ood hipped on and after the t\,· nty-fifth (25th) <lay of 

ea h m nth ma bear the date of the fir t <la in the foll ,Ying 

month, but no oth r datinO' shall be allowed ex ept as hereinafter 

pro"Vided. 

·. (a.) Holida o-oo l may be hipped to u tom r · in la · es 

(b) ' and (c) ·, a lefinel in Paragraph 1, at th onvenience 

of the member of the industry and not more than thirty (30) daj ' 

dating given provided that such extra dating shall not 11ake the 

di ount date fall later than January 10 of the followinO" year· anticipation may be allowed at a rate not to exceed one-half of one 

per cent monthly but ·uch dating shall be confin d exdu ·i ely 

to holiday goods. 

(b) Holiday goods ma be shipped to cu tomers in Classes '' (a)" 

an<l ' ( d) a defin d in Paragraph 1 at the convenience of the 

member of the Indu try and not more than sixty (60) day ' dating 

gi en, provided that uch extra dating shall not make the di count 

date fall later than January 10 of the following year; anticipation 

may be allowed at a rate not to exceed one-half of one percent month1 but uch dating hall be confin d exclu ively to holiday good . Th 

t rm ' H liday Goods" as u ed hereinabove, is defined t include 

any merchandi e pecially packed for the Chri tma tra<l and 

int nded to be sold for Chri tma gift ·, and having special ontainers 

or o her d ignation appr priate to Chri ma ·. All other methan li e i definitel3 ex luded from the ~ p cial rm I r ,·i 1 c1 in 

e ti n 6. 

7. 11 ·hipment of good · shall be made an 1 invoice r ml red 

at price. and term. a. ·hown on current che<lule of pri e-· and ·uch 

invoice. ·hall a curately ·how quantiti , brand , number~ or ther 

identif in_e; le ription in a cordance with publi he l pri li t. . (a) m mber f the indu try hall give to an u t amer 

an p ·ial pri e allowance ·, rebate dire t or indirect or on es-

£ an kind not hown on su h memb r's publi bed price Ii t. 

memb r £ the indu try shall iYe to any ustomer any 

or allowanc f any kind n an m rchandi be ause of a 

de Jin in pri · aft r hipm nt ha been made. 

9. o m mb r £ th indu ry hall giv permit to b i n or 

ff r to i an thino- of alu f r th purpos of influ ncing r 

r ardin the action of any mpl , agent, or r pr ntativ of 

anoth r in r lation to th bu ine f the mploy r of uch mpl yee, 

h prin ipal of su h a nt or the r pr nted b 1 without the 

kn wle lo- of , n h m1 l r prin ipal or par . mmer ial bribr provi. i n h 11 n n tru <l t r r hibit a g n r al li tribution f ar icle conunonly u d for a lv 1 ti ing x p o far a u h 
180 

articles as actually used for commercial bribery as hereinabove 

defined. 

10. No member of the Industry shall accept the return of any 

article for credit or exchange wluch is subject to the provisions of 

this Code, except on account of defects in material or workmanship, 

provided, however, that articles returned on account of errors in 

shipment, delay in delivery, or failure to conform to the order may 

be accepted if returned within ten (10) days from the date of receipt 

by the customer. 

11. No member of the Industry shall ship any merchandise on 

consignment, memoranda or guaranteed sale. 

12. No member of the Industry shall by purchase or exchange, or in 

any manner whatsoever, acquire merchandise produced and/or sold by 

another member of the Industry from any customer for the purpose 

of effecting or in any manner influencing the sale of merchandise 

to such customer. 

13. No member of the Industry shall sell any article, subject to 

the provisions of this Code, at a price below his individual cost. 

However, any member may meet the price competition of any competitor whose cost under this Code is lower. Cost for the purposes 

of this provision shall be determined in accordance with the uniform 

cost and accounting system provided for in Article VI, Section 3, 

sub-section (i) hereof, when such system is reco1m11ended by the 

Code Authority and approved by the Administrator. 

14. The sale and/ or delivery of distressed merchandise, discontinued styles, salesmen's samples, and all similar merchandise shall 

be confined to two periods during the year, viz: one period from 

December 15 to January 31, and another period from July 20 to 

August 20 of each year, provided, however, that upon application 

to the Code Authority a member of the Industry may upon showing 

that such sale will not result in unfair competition obtain permission 

to dispose of merchandise covered by this provision at other periods 

than those herein provided, and upon such reasonable terms and 

conditions as the Code Authority may impose. Merchandise sold 

in accordance with this provision shall be exempt from the provisions of Section 13. Any action taken by the Code Authority under 

this provision shall be subject to review by the Administrator. 

15. Seconds and faulty or defective merchandise falling below the 

Member of the Industry's standard for regular goods shall be plainly 

and uniformly marked with the designation "irregular" or "reject". The Code Authority may from time to time impose reasonable terms and conditions governing the sale of merchandise of this 

class, subject to approval by the Administrator; and unless and until 

these terms and conditions otherwise provide, such merchandise 

shall be exempt from the provisions of Section 13. 

16. No extra discount shall be allowed on merchandise supplied 

to wholesale merchants for use as samples. 

17. No member of the industry shall cause, or knowingly permit 

any person in its employ, or receiving from it any compensation 

in any manner whatsoever, to seek or obtain employment with a 

competitor for the purpose of · acquiring knowledge concerning the 

trade secrets, or other similar confidential information relating to 

the competitor's business. 
181 

~8. No m mb ~ of th in lu tr ·hall publi ·ha 1 rti. ·illg (wh th r 

printed radio, d1 play or of any other natur ) whi ·h i: mi.·l a<linoor inac ura in an ' ma rial par i ular nor ·hall any memb ~ 

in an wa mi r pre nt an d (in ·luding but with ut limita ion 

it u e tra l mark grade quality quantity, origin, .-iz , ·ub. tanc , 

charact r natur fini. h material, ont nt or prepa ration) or credit 

term , ,alue Ioli ie 1 i . or th na tur or form of th, Ln1:-:iin · conducted. 

19. To memb€r f th indu tr 7 ·hall knowin rly withholcl fr m or 

in er in an quotation or invoice any -tat m nt that make it ina urat in an_ material parti ular. 

20. To m mb r of th Indu tr ·hall brand or mark or la k 

an o- d in an mann r which i intend l to or does dP ej, r 

mi lea l pur ·ha.-er with r pect to the brand oTa 10 q11alit3 quantity ricin, iz , nb. tan e character nature; fini ·h mat rial 

cont nt or pr paration of u h good . 

21. On and after the effe tive date of thi Code n m mber of the 

Inclu tr3 hall u e employee in the capacity of clemon.-trator an 1/or 

mi ionary ale ·men ubject to th followi:r;ig exception and 

ndition V: 

(a) o member of the Industry hall in any manner increa e the 

pre ent number of demon trator an Vor mi ionary ·ale men. 

(b) Each member of the Inclu.try hall file with the Code uthorit a lit of all pre. ent demon trator and/or mi ionary alesmen 

together ith information a to their location. 

( c) Thi Ii t , hall pecify th time on or before whi ·h each ·uch 

demon trator and/or mi ionar3 ·ale ·man will be di. continued. 

( d) All lemon tra tors an l all mi ·ionar alesmen a re to be disontinuecl n or before June 30 1934. 

(e) The giYin · or allowing of P.M. 'or any other forms of conce ion what oever to ale per ons in retail place of bu ine i 

prohibit cl. 

The appli ·ati n of thi provi ·ion hall be tayed for a peri cl of 

thirtv day from the e:ffecti,~e date of thi Code. The dm1ni trator, 

after~ ueh n i e and h arjng a he hall pre cribe . may grant to 

an m mb r of the Indu try making application therefor within 

thi perio l, . ·u h exemption from or exception to thi proY1 i n a 

the fact pre. ent cl may ju tify. 

22. Any m mb r of the Inc.lu try may build up hi price· applicable 

to cu tamer in cla (b) on mer ·han li e ubject to th provi ion 

of thi od o p rmit th aranting of a tra le di count in a lditi n 

t the a h i. count e tabli h d in ection 5 provi le l that pric 

list howina u h built up price and the trade li ount appli able 

thereto are pr pared an l publi ·bed in the r o-ular manner and furth r pro,i led tha th , al of m rchancli e at u h built up price 

. hall be · nfin l or t D partment . 

.ART1 ·LE III- IooIF1 ATIO~ 

1. Thi ode and all the provi ion. ther of ar xpr ly made 

. ubject to h right of h Pr ic~ nt in ac ordanc . with th proyision of ub t10n (b) of ec 10n 10 of th at10nal In lu. trial 

Recov ry Act, from tim to time to can el or modi£ any ord r ap-
1111111111111111111l1~1III II i111 II ll11 1\1 \1ll~1l~ll1111111111 

182 3 1262 08852 5489 

proval, license, rule or regulation issued under Title I o:f said Act. 

2. This Code, except as to provisions, required by the Act, may be 

modified on the basis o:f experience or change in circumstances, such 

modification to be based upon application to the Administrator by 

the Code Authority and such notice of hearing as he shall specify, 

and to become effective on approval o:f the President. 

ARTICLE IX-MONOPOLIES 

No provision o:f this Code shall be so applied as to permit monopv1ies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE X-HOMEWORK 

No home work shall be permitted by employers ninety (90) days 

after the effective date of this Code. 

ARTICLE XI-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval. 

Approved Code No. 342. 

Registry No. 899-1--01. 

0