Approved Code No. 21-Amendment No. 1 Registry No. 930-1-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

LEATHER INDUSTRY 

AS APPROVED ON FEBRUARY 16, 1934 

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UNITED STATES 

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WASHINGTON : 1934 

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Approved Code No. 21.. Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

F OR THE 

LEATHER INDUSTRY 

As Approved on F ebr uary 16, 1934 

ORDER 

APPROVING Al\IENDMENTS OF CODE OF FAIR COMPETITION FOR THE 

LEATHER INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provision of Title I, of the National Industrial Recovery Act, approved June 16, 1933, for approval of amendments to a Code of Fair Competition for the Leather Industry, and 

hearings having been duly held thereon and the annexed report on 

·aid amendments, containing findings with re pect thereto, having 

been made and directed to the President: 

NOvV, TI-IEREFORE, on behalf of the President of the United 

Stutes, I, Hugh S. John on, Administrator for Industrial Recovery, 

pur uant to authority ve ted in me by Executive Orders of the 

Pre ident, including ExecutiYe Order o. 6543- A, dated December 

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

annexed report and do find that . ·aid amendments and the Code as 

on tituted after being amended comply 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 amendments 

be and they are hereby approved and that the previous approval 

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

Code in its entirety as amended. 

HUGH 8. JOHNSON, 

Adm,ini frator for l nd1.1,.strial R ecove1'y. 

Approval recommended : 

GEO. L. BERRY, 

Division Adniinist-rator. 

,v AsHINGroN, D.c., 

F ebr,,tary 16, 1934. 

40 73°-376- SG-34 (1) 
REPORT TO Tl-IE PRESIDENT 

The PRE IDE.1'T, 

Th e lVhite House. 

rn: This i · a report on the Amendments to the Code of Fair 

Competition for th Leather Industry, and on the hearing conducted t hereon in ,vashington, D.C., January 22, 1934, in accordance with the provi ions of Title I of the National Indu trial 

RecoYery .... ct. 

GE :rERAL ST:\. TEMEXT 

The Leather Intlu try, through the General Planning Committee, 

it · Code Authority, ha availed it elf of provi ·ions in Article X"\ 

of the Code of Fair Competition for the Leather Indu try approved b. · you on the seventh day of September 1933, which recites 

in part: 

'

1 It is contemplated that from time to time ·upplementary proYi ion to this code or additional codes will be ·ubmitted for the 

apprm al of the President to prevent unfair competition in prices 

and other unfair and destructiYe competitfre practice an l to effectuate the other purpo ·es and policies of Title I of the National 

Tnclu. trial Re OYe ry Act consi tent with the provi. ion hereof." 

RE U.1\I~ OF 1\-IODIFICATIO ... ·s 

1. For the inclu ·ion of outh Carolina in Section 1 of rticle I, , 

left out of original through oYer ight. 

2. A typographical correction of Article VI, subsection (b) ; 

whi h read: " beltmaker , emergency service workers " and now 

read ·: ' beltmaker · emerg ncy ervice workers. 

3. A clarification of paragraph 1 of Article X definitely outlining representation and procedure of the vote by divi ions of the 

indu try on General Planning Committee. 

4. ,YaiYe ix per cent (6% ) intere t charge where state laTI's 

provide lower rate. 

Al o includes a three ( 3) lay · grace provi ion at sell r'::; 01 tion, 

during which di 'CO tmt may be allowed and during "hich no interest 

hall ~ charg cl, proYided payment i made within this three (3) 

day period. 

The balanc of proposed amendments are in the form of a upplemental code 0£ fair tra :I. practice · £or the American Leather 

Belting Association DiYi ion of the Leather In lu try and its subdivi ion , includino- the waiYing of the six per ent (6% ) intere t 

charge on pa t due accounts becau ·e of th great number and g nerally small size 0£ accounts in thi divi ion. 

The Deputy Admini trator in hi final report to me on aid 

am ndment · to aid Code lu1.Ying found a herein ·et forth and on 

the basi · of all the proceeding,· in this inatter: 

(2) 
3 

I find that: 

(a) The amendments to said Code and the Corle a.· amend cl are 

well desio-ned to promote the policies an l purposes of Title I of 

the National Industrial Recovery A t including the removal of 

obstruction · to the free flow of inters ate ancl foreign commerce 

which tend to diminish the amount thereof, and will prnYide for 

the general welfare by promoting the organization of in ln try for 

the purpose of cooperative action among trade groups, by inducing 

and maintaining united action of labor and management under 

adequate governmental san tion an l upervi ion. by eliminating 

unfair competitiYe practices, by promoting the fullest po sible utilization of the pre ent productive capacity of the indu:~trie , by a--roid- ing undue restrictions of production ( except a may be temporarily 

required), by increa ing the consumption of indu trial and agricultural product · through increasing purchasing power, by reducing 

and relieving unemployment, by improving standard· of labor, and 

by otherwise r ehabilitatii1g industry. (b) The Code as amended complies in all respects with the pertinent provision of said Title of said Act, inclu Eng ,Yithout limitation Subsection (a ) of Section 3, Sub. ection (a) of Section 7 and 

Subsection (b) of Section 10 thereof. 

( c) The Tanners' Council was and is an industrial a sociation 

truly representative of the aforesaid Industry and that said Council 

imposed and imposes no inequitable restriction. on aclmis. ion to 

member hip therein and has applied for or consents to these 

amendment ·. ( d) The amendments and the Code a amended are not designe l 

to and will not permit monopolies or monopolistic practices. 

( e) The amendments and the Code as amended are not designed 

to and will not eliminate or oppress small enterpri es and will not 

operate to discriminate against them. 

(f) · Those engaged in other step of the economic proce s have 

not been deprived of the right to be heard pTior to appro-, al of said 

amendments. Respectfully, 

FEBRUARY 16, 1934. 

I-luGH S. JoHN ON, 

Administrator for I ndustrial Recovay. 
AMENDMENT TO THE CODE OF FAIR COMPETITION 

FOR THE LEATHER INDUSTRY 

1. To insert the name of South Carolina in Section 1 of Article IV 

of the Code. 

2. Article VI, Section 2 (b), is amended to read: 

"Maintenance workers, engineers, firemen, beltmakers' emergency 

service workers, patent le.ather luggers and sorters of whole leather 

who may not work over 40 hours in any one week, except by payment of 11/3 rate for overtime, nor over 8 hours in any one day, 

except by payment of 11/3 rate for overtime." 

3. Paragraph 1 of Article Xis amended to read as follows: 

" For the purpose of carrying into effect the policies set forth 

in the National Industrial Recovery Act, the Board of Directors 

of the Tanners' Council of America from time to time, subject to 

the approval of the National Recovery Administration, shall classify 

all members of the industry into divisions, each of which shall be 

truly representative of its branch of the Leather Industry, and 

shall allow to each such divi ion the right to either one or two 

representatives on a General Planning Committee. Such representatives ·hall be elected by each divi ion according to its own rules. 

An alternate may be elected and may act for any repre entative. 

If a divi. ion ha two repre entatives either in the absence of the 

other may ca t both votes. The General Planning Committee shall 

constitute the coordinating agency for the divisions of the industry." 

4. The fir t paragraph of Article XIV i amended to read as 

follow : 

''All invoices covering domestic sales in the Leather Industry 

shall. be due and payable in 30 days. At seller's option payment 

may be made on the 15th day of any calendar month for all invoices 

of the preceding calendar month. No datings shall be allowed. 

Discount hall be for cash paynient only and shall not exceed 2%. 

All bills are net after 30 days and interest shall be added at the 

rate of 6% per annum unles this shall be higher than the legal 

rate in any State in which case the legal rate shall prevail, provided, however, that at the seller's option he may grant 3 days of 

grace during which discount may be allowed, and during which 

no intere t shall be charged, provided payment is made within this 

3 clay period. 

'' The requirement that interest shall be collected on overdue 

account shall not apply to member of the American L eather Belting As ociation Divi ion of the Leather In lustry, except when rough 

or urried belting or other leather i old in competition with 

m mbers of other divi ion of the Leather Indu try, in which ca e 

int r .-t shall b colle te 1 a required by thi article.' 

!5. Fai,· T1·ade Practi of the m ri an L ather B elting ,,_L ociation Di •i.·ion of th L eath r lndu try.-(1) After th approYal of 

( -1) 
5 

the CoD:tract and Forwar~ Order forms required by Article XIV 

hereof, 1t shall be an unfair trade practice for forward orders to be 

accepted except in accordance with the terms and forms so approved. 

Order taken ~or shipment ·"ithin 30 clays of placing of the order are 

not to be considered forward orders. (2) Deception.-Frau lnlent and/ or cl"ceptive practice:·, including 

false or misleading aclYerti ·ing, mi -labelino·, r mi brm1 ling, is an 

unfair trade practice. 

(3) Substitu.tion.-The substitution of inferior materials for those 

named in any order or contract ·without the purchaser'· kno-,vledge 

or permi · ion is in unfair trade practic . 

( 4) Secret R ebates.-The ()'iving of secret rebates 01" refund · is 

an unfair trade practice. 

Fair T,·ade Pl'actices Applyi,1g to ~lpron JI mrnfactw·ers 

(1) It shall be unfair trade practice for any manufacturer or 

jobber to give leather aprons as free ·arnples. 

(2) It hall be an unfair trade practice to give a time guarantee 

covering leather aprons, except that wher the seller has agreed with 

the buyer that the matter of workmanship and materials is subject 

to adjustment an udju tm.ent may be made provided that the facts 

are reported to the ecretary of the American Leather Belting 

Association, who . ·hall keep such facts on file. 

Fair Tr1ade Practice. Applying to Canvas Lug Straps, L eather 

StJ•apping, and Lea1the1' Loom Picker Marl'u factw el's 

(1) Advertising Al101cance.-The giving by the seller of any adYerti ing allmYance, directly or indirectly, which brings the price of 

any product below hi cost of such product, is an unfair trade practice. 

(~) Defa1nation.-'1Vilfull or maliciou defamation of competitors 

or the disparagement of competitor ·' product , is an unfair trade 

practice. 

(3) ll!l isapprop1·iation .-The misappropriation of a competitor's 

lmsine s by inducing breach of contracts, espionage, piracy of styles, 

<lesign , patent , or copyrights, or imitation of trade name or trade 

mark , i unfair practice. 

F(J;ir Trade Practices f 01· Lace L eathe1' Division 

Owing to the merchandising practice in the Lace Leather Division 

forward orders nre unnecessary where delivery is specified within 

ninety (90) days, from date of invoice. 

Approved Code Ko. 21. Amendment No. 1. 

Registry No. 930-1-01. 

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