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3 1262 08486 7976 Registry No. 280-1-01 

NATIONAL RECOVERY ADMINISTRATION 

C·ODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND DRAPERY 

TEXTILE INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

,. ., 0 ~ 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent or Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication 1s 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. 

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.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Ja ·ksonville, Fla. : Chamber of Commerce Building. 

Kansas City, l\lo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 933 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 Building. 
Approved Code No. 125 

CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND DRAPERY TEXTILE 

INDUSTRY 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

Recovery .A.ct, approved June 16, 1933, for my approval of a Code 

of Fair Competition for the Upholstery and Drapery Textile Industry and hearings having been held thereon and the Administrator 

having rendered his report containing an analysis of the said code 

of fair competition together with his recommendations and findings 

with respect thereto, and the Administrator having found that the 

said code of fair competition complies in all respects with the pertinent provisions of title I of said act and that the requirements of 

clauses (1) and (2) of subsection (a) of section 3 of the said act 

have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 

the United States, pursu~nt to the authority vested in me by title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and approve the report, recommendations, 

and findings of the Administrator and do order that the said code 

of fair competition be and it is hereby approved, subject to the 

following conditions : 

(1) Any manufacturer producing upholstery and drapery fabrics, and known to the trade as a cotton manufacturer, a wool-goods 

manufacturer, a silk manufacturer, or a rayon manufacturer, who has 

been operating as of August 15th, under a code of fair competition 

for such industry, may elect not to be bound by any of the provisions of this code, with the exception of article IX, provided, 

that notice of such decision by such manufacturer shall be filed in 

23774°-244-93-33 (259) 
260 -

writing with the National Upholstery and Drapery Textile Association, Incorporated, at its offices, 185 Madison A venue, New York, 

N.Y., and al o filed in writing with the Cotton Textile Institute, 

320 Broadway, New York, N.Y., or the National Association of Wool 

:Manufacturer , 229 Fourth Avenue New York, N.Y., or the Silk 

A sociation of America, 468 Fourth Avenue, New York, N.Y., or 

the National Rayon "\Veavers A ociation, 40 Worth Street, New 

York, N.Y., not later than 6: 00 p.m., Eastern standard time, on the 

second Monday following the approval of this paragraph. 

(2) The pro-vi ions of article III, section 4, of this code are 

hereby stayed for a period of fourteen (14) days from the effective 

date of this code insofar as said provisions are applicable to those 

looms on which are manufactured pile fabrics used exclusively for 

automobile upholstery. 

Approval recommended: 

HUGHS. JOHNSON. 

Adrninistrator. 

THE WHITE Hou E, 

November t27, 1933. 

FRANKLIN D. ROOSEVELT. 
NOVEMBER 17, 1933. 

The PRESIDENT, 

The White House. 

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

Upholstery and Drapery Textile Industry, as proposed by the National Upholstery and Drapery Textile Association, was conducted 

in Washington on August 30, 1933. Every person who requested an 

appearance was freely heard in accordance with statutory and regulatory requirements. The code has the approval of the great majority of manufacturers who work exclusively on upholstery and 

drapery fabrics or for whom these lines constitute a substantial part 

of their business. 

DESCRIPTION OF THE INDUSTRY 

Unique difficulties arose when considering this code because of special conditions inherent in this branch of the textile industry. 

The production of upholstery and drapery fabrics is a business 

which, on equipment of great versatility, uses all types of fiber.s in 

producing fabrics to develop and meet style changes. Since its 

founding, it has been a separate and distinct branch of the textile 

industry, generally unaffiliated with the production of other textil1es. 

This separation was the natural result of the variety of raw materials 

used and the special skill and art required in the manufacture of 

these fabrics. Sales also are made through specialized channels. 

Upholstery fabrics generally are sol1d direct to manufacturers of 

furniture, automobiles, railroad cars, etc. Drapery fabrics are sold 

direct by the mill to large retail outlets while smaller retail outlets 

are reached through wholesalers. 

The industry realizes that it is only a small branch of the whole 

textile industry but because of the variety of fibers used, its specialized type of products~ and its separate distribution problems, it does 

not fit into any of the major classifications of textiles. 

The fibers employed in the manufacture of upholstery and drapery 

fabrics include every known natural and synthetic fiber used in the 

production of textiles. From year to year style and price 1equirements cause substantial changes to be made in the raw materials 

used. In one season a large amount of rayon might be used which 

in another year might be supplanted largely by silk, worsted, or 

mohair. At any one time a mill might be making several fabrics 

of which one might be principally of rayon, another principally of 

cotton, and still another principally of wool or mohair. More frequently than not, a single fabric will be com posed of two or more 

fibers and it is not unusual for four or more fibers to be employed 

in the making of a single piece of goods. This industry, for example, 

is one of the few to employ the little known fiber, ramie, to any 

extent. 

(261) 
262 

Thus, great confusion would be created if the industry should be 

required to _operate concurre~tly or intermittently under each of the 

several textile codes, depending upon the predominant fiber in each 

particular fabric produced. Furthermore, effective cooperation 

would virtually be impossible. 

Within recent years, mills commonly classified as cotton mills have 

gone into the weaving of upholstery and drapery fabrics in order 

to provide an additional outlet £or their yarns or to utilize idle 

loom equipment. A number of cotton mills have limited their participation in this business to those periods in which there had been 

but light demand £or their other products. 

Upholstery and drapery fabrics are divided into two broad types, 

pile fabrics and flat fabrics. Flat :fabrics used in this field are constructed on the same general principles as other textile materials. 

However, the upholstery and drapery materials necessarily have a 

much heavier body and more extensive and intricate designs and 

colorings than almost any other group of textiles. A considerable 

portion of both pile and flat £.abrics are woven with jacquard ma.-

chines and the looms in both divisions of the industry are almost 

entirely of a width greater than 50 inches. 

To manufacture pile fabrics, specialized types of looms are needed 

which can weave only pile fabrics. Looms for the production of flat 

f,abrics in an upholstery and drapery 1nill are also specialized as they 

are suitable only £or the production of these more complex fabrics, 

and are built for quality production, rather than quantity production. 

As a practical matter, therefore, non-automatic shaft and jacquard 

looms mainly are found in mills of this kind. One weaver to a loom 

is customary in this industry and two or three looms to the weaver 

is the practical limit, due to the close attention required £or the production of a complex fabric. Weavers of upholstery and drapery 

fabrics are highly skilled opera.tors and a typical worker must have 

had and actually does have years of experience. 

The industry is distinctive also, particularly in these days of mass 

production and standardization, in that its products are highly specialized and any one fabric, weave or design is often produced in 

relatively small quantities. An undetermined but important part of 

total production is of special designs, originated for a predetermined 

market and adapted to a definite use. The style life and demand £or 

such a material is very short and the manufacturing problems are 

further complicated by style piracy, one of the greatest single problems of the industry and one which was stressed by the proponents 

of the code as a vital reason for a code of their own. 

Both drapery and upholstery materials must be styled to accord 

with the constantly changing trends in furniture de ign and interior 

decoration. Designs alone frequently cost as high as $500.00 to 

$800.00 plus the co t of experimental runs in which the construction 

and compo ition of the fabric, its design and color treatment, are 

altered before the details of the final fabric are decided upon. Once 

a fabric has been made, it is a simple matter for any other manufacturer to put the same or a similar fabric into produ tion at practically no expense. Pirated designs in almo t ev ry case are reproduced in cheaper fabrics and sold at a price materially lower than 
263 

the original. Design piracy is an evil which this code and administrative machinery attempt to remove. 

Because of all these factors it is believed that the interests of all 

mills in the textile industry will be most adequately served by the 

Executive Order allowing mills to make a choice as to the particular 

code under which they will operate. Mills commonly classified as 

cotton mills or woolen mills, and now operating under such a, code, 

may elect to continue operation under the basic provisions of that 

particular code even though they produce a certain amount of fabrics 

that meet the definition in this code. It is essential, however, that 

mills electing to operate under another code, be bound, in their selling of upholstery and drapery fabrics, by the fair trade practices of 

this code, namely, Article IX. This was objected to strenuously by 

the Cotton Textile Institnte. It was deemed necessary, for the present, to overrule this objection. In this manner, the confusion of 

operating one plant under several codes will be minimized, and yet 

those who are primarily producers of these more intricate fabrics 

will still have a code suitBd to their particular problems. 

LABOR PROVISIONS OF THE OODE 

It is impossible to arrive at any estimates o:f reemployment that 

would be secured by the operation of this code. Practically every 

mill in this industry is now operating under either the cotton or the 

wool code and consequently their operations are on the basis of forty 

(40) hours for employees and eighty (80) hours for looms. Previously, the full work week was forty-eight ( 48) hours in the majority 

of the northern plants, but seasonal influences generally cut the work 

week to a somewhat smaller figure. With only some 10,000 employees 

in the whole industry, the figures for possible reemployment, even 

from the low point, would not be very impressive. Also, it is 

probable that estimates of reemployment in the textile field, as a 

whole, have already taken into account the upholstery and drapery 

industry. 

The minimum wage rates :for the usual upholstery and drapery 

mill are not a matter of great concern to either management or labor 

because 80 percent to 90 percent of the operators are highly skilled 

and already receive considerably more than the proposed scale. 

Because competing mills will be bound by certain provisions of 

this code, it is necessary that wage and hour provisions in the 

Upholstery and Drapery Textile Industry conform with such provisions in the basic textile industries, until such time as they may 

be adjusted. 

LOOM-HOUR LIMITATION 

The code provides :for a limitation of hours of machine operation 

as a measure designed to stabilize employment and production. In 

arriving at a basis for loom-hour limitation the sponsors of the code 

first gave consideration to the number of looms available for economical and effective use. The average demand :for upholstery and 

drapery fabrics during the last few years has been considerably less 

than the capacity of the industry. 
264 

The loom-hour limitation clause is as follows:" No loom shall be 

operated for more than two shifts of forty ( 40) hours each per 

week." 

Strong objections to this provision were raised by a small group o:£ 

manufacturers who produce approximately 90 percent o:£ the pile 

fabrics used for upholstering automobiles. They contended that 

there is no overproduction nor has there been any overproduction of 

this class of pile fabrics. In particular, this group stressed that the 

application of this provision would result in a curtailment of the 

supply of automobile upholstery fabrics which would be reflected 

in the production of automobiles and cause a lay-off of employees in 

that industry. Certain automobile body manufacturers bore out this 

statement. 

The rest of the manufacturers in the industry, while admitting that 

they themselves produced but a negligible amount of automobile pile 

fabrics, advanced the thought that allowing unlimited operation on 

automobile pile fabrics looms would cause unfair competition for two 

reasons. First, there would result a natural reduction in overhead 

costs to a few in the industry by reason of longer operation of machinery which would be reflected in the production costs of fabrics 

made by these manufacturers for trades other than the automobile 

industry. Secondly, the available looms which were potential producers of these special fabrics were far in excess of the number 

needed to supply the annual requirements of the automobile industry. 

Logical and forceful cases were made by both sides in the controversy and there was considerable merit in all the arguments advanced. 

The industry was unable to reach a compromise and decided to leave 

the final decision to the Administration. After weighing all the evidence and giving careful consideration to the probable effects on this 

indu try, related industries, and the consumers of these fabrics, it was 

felt that all looms should be restricted to two shifts of forty ( 40) 

hours per week. 

To give the industry opportunity to adjust its operations to this 

schedule, a stay for 14 days of the machinery-hour limitation is 

granted by Executive Order to those looms used for the exclusive 

production of automobile pile fabrics. 

ADMINISTRATION 

The prov1s10ns for administration of this code are capable of 

providing the N.R.A. and the Upholstery and Drapery Textile Industry with sufficient data to make recommendations for the limitation of certain provisions of the code as herewith presented and/ or 

the addition of further provisions of this code which would be 

beneficial to the industry as a whole. 

CONCLUSION 

I find that the code complies in all re pect with the pertinent 

provi ions of Title I of the National Indu trial Rec very Act, 

including, without limitation, ubsection (a) of ection 7 and subsection (b) of Section 10 thereof. 
265 

The National Upholstery and Drapery Textile Association is truly 

representative of the Upholstery and Drapery Textile Industry and 

the by-laws of this Association provide no inequitable restrictions to 

membership. . The code is not designed to promote monopolies or to eliminate 

or oppress small enterprises and will not operate to discriminate 

against them, and will tend to effectuate the policy of Title I of 

the National Industrial Recovery Act. 

Accordingly, I hereby recommend the approval of the Code of 

Fair Competition for the Upholstery and Drapery Textile Industry. 

Respectfully, 

HUGH S. JOHNSON, 

.Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY AND DRAPERY TEXTILE INDUSTRY 

ARTICLE I-PunPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Upholstery and Drapery Textile Industry, and shall be the standard of fair competition fo:r this 

industry. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "industry", as used herein, shall include, 

without limitation as to materials used, the manufacture of upholstery and drapery woven pile fabrics and upholstery and drapery 

fabric without pile made on 4 x 4 Box Broad Looms, with a design 

requiring a jacquard machine having 600 hooks or more, requiring 

two shuttles or more. 

SEc. 2. The term "employee", as used herein, includes any person 

engaged in any phase of the industry in any capacity in the nature 

of employee irrespective of the method of payment of his 

compensation. 

SEc. 3. The term "employer", as used herein, includes any one 

for whom such an employee is so engaged. 

SEc. 4. The. term "member of the industry", as used herein, includes any employer and/or enterprise in this industry. 

SEc. 5. The term "member of the code", as used herein, means 

any member of the industry who shall agree in writing as prescribed 

in Section 7, of Article VI. 

SEc. 6. The term" President", as used herein, means the President 

of the United States of America. 

SEC. 7. The term "Administrator", as used herein, means the Administrator appointed by the President under the National Industrial Recovery Act. 

SEc. 8. The term "Code Authority", as used herein, means the 

National Administrative Agency of the Upholstery and Drapery 

Textile Industry as established in Section 1 of Article VI. 

SEc. 9. The term" association", as used herein, means the National 

Upholstery and Drapery Textile Association or its successor. 

SEc. 10. The term "learner", as used herein, shall include any 

employee who has worked in the industry less than six weeks. 

ARTICLE III-HouRs 

SECTION 1. No engineer, electrician, or employee working on a 

repair shop crew or watching crew, shall be permitted to work more 

than 40 hours per week, with a tolerance of ten percent; provided, 

(266) 
267 

however, that in the case of emergency maintenance or emergency 

repair work, involving breakdowns or protection of life or property, 

the above maximum hours shall not apply; and provided further 

that all hours worked in excess of forty ( 40) hours per week shall be 

compensated for at the rate of tin1e and one third. Emergency 

hours worked shall be reported monthly to the Code Authority pro-

' ided for in Section 1 of Article VI. 

SEC. 2. No office employee shall be permitted to work in excess of 

forty ( 40) hours per week averaged over a twelve weeks' period, but 

in no event in excess of forty-eight (48) hours in any one week. 

SEc. 3. No other employee, except outside sales persons, and those 

employed in a managerial capacity and earning in excess of $35.00 

per week, cleaners, firemen, and those employed on shipping and 

outside crews, shall be permitted to work in excess of forty ( 40) 

hours per week; provided, however, that the Code Authority hereinafter provided for in Section 1, of Article VI, shall recommend to 

the Administrator on or before January 1st, 1934, the maximum 

hours which cleaners, firemen, and those employed on shipping and 

outside crews shall be permitted to work. 

SEc. 4. No loom shall be operated for more than two shifts of 

forty ( 40) hours each per week. 

SEc. 5. Until adoption of further provisions of this Code that may 

prove necessary to prevent any improper speeding up of work 

( stretch outs), no employee shall be required to operate or attend 

more machines or perform duties in addition to those prevailing on 

July 1, 1933, unless such increase is approved by the Code Authority, 

~ubject to review by the Administrator. 

ARTICLE IV-\iV .AGES 

SECTION 1. No employees, except learners, cleaners, and those em- ployed on outside crews, shall be paid at less than the r ate of 321⁄2 

cents per hour, provided, that in the southern section, no employee 

except learners, cleaners, and those employed on outside crews, shall 

be paid at less than the rate of 30 cents per hour. 

The southern section as used herein shall include the states of 

Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Tennessee, Kentucky, and West Virginia. 

SEc. 2. No learner, cleaner, or employee engaged on an outside crew 

shall be paid at less than 80% of the minimum wage ra.tes hereinabove set forth in Section 1; provided, that learners, cleaners, and 

those employed on outside crews shall not exceed 10% of the total 

employees of each plant. 

SEc. 3. No employee, whether paid on a time rate, piece work, or 

commission basis, shall be paid less than the minimun1 rate per hour 

of employment prescribed in this Code. 

SEo. 4. There shall be uniform wage rates for all shifts. 

_S~c. 5. To t~e extent_ practicable (a) rates of pay in excess of the 

mm1mum herein prescribed shall be mcreased so as to preserve equitable differentials and (b) earnings shall not be reduced by reason of 

a reduction in hours. 
268 

SEc. 6. In determining the classification of employees under this 

Code, each employee shall be entitled to claim the benefits of the, 

classification of occupation in· the industry existing on June 16th, 

1933. 

ARTICLE V-CHILD LABOR 

SECTION 1. No person under 16 years of age shall be employed in 

the industry. In any State an employer shall be deemed to have 

complied with this provi ion if he shall have on file a certificate or 

permit duly issued by the Authority in such State empowered to 

issue employment or age certificates or permits, showing that the 

employee is of the required age. 

ARTICLE VI-ADMINISTRATION 

SECTION 1. To further effectuate the policies of the National Industrial Recovery Act, a Code Authority is hereby set up to cooperate with the Administrator in the administration of this Code. 

Such Code Authority shall consist of not less than 8 nor more than 

11 members, 8 of whom shall be representatives of the Industry 

elected by a fair method of selection to be approved by the Administrator, and 3 of whom without vote may be appointed by the Administrator. Such agency may present to the Administrator recommendations based on conditions in the industry as they may develop 

which will tend to effectuate the operation of the provisions of this 

Code and the policies of the National Industrial Recovery Act. 

Su.ch recommendations, when approved by the Administrator, shall 

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

SEC. 2. Such Code Authority shall cooperate with the Administrator in making investigations as to the functioning and observance of 

any provisions of this Code, at its own instance or on complaint by 

any person affected, and shall report the same to the Administrator. 

SEc. 3. The Code Authority shall provide for the formation of a 

committee for the administration of the provisions of Article IX of 

this Code. Such committee shall include representatives of all trade 

groups subject to the provisions of said Article. The Administrator 

at any time may require such committee to give representation to 

any such trade group in such manner as may be deemed equitable. 

SEc. 4. Each employer shall furnish reports as hereinafter provided. The Association is hereby constituted the agency to provide 

for the collection and receipt of such reports and for the forwarding 

of the substance o,f such reports to the Admini trator, the As ociation to provide for receiving and holding such reports them elves 

in confidence. Such reports shall be in such form, and shall be furnished at such intervals as shall be prescribed by the Association, 

subject to the approval of the Administrator, and shall contain such 

information relevant to the purpo es o.f this Code, as shall be prescribed by the Association, subject to the approval of the Administrator, including information with re pect to the following; or related 

subjects: 

(a) Employment, hours, wages, and wage rates. 
269 

(b) Production, orders, filling, and stocks ( in process and finished) 

of products manufactured. 

( c) Cost data. 

( d) Activity, purchases, sales, and scrapping of machinery. 

(e) Consmnption and stocks of raw materials. 

SEC. 5. Statistics disseminated to the industry by the Code Authority shall be in the form of compilations and shall not disclose 

statistics of individual plants. 

SEc. 6. There shall be no inequitable restrictions imposed on membership in the Association. 

SEo. 7. Members of the industry who are complying with the requirements of the code; and who agree in writing either individually 

or through trade associations of which they are members to abide 

by the requirements of this code, and to pay their reasonable share 

of the expense of administration thereof, shall be entitled to the 

benefits of the activities of the Code Authority and to make use of 

N.R.A. Code insignia. 

SEo. 8. The reasonable share of the expense of administration of 

the Code to be borne by the members of the code, shall be determined 

by the Code Authority, subject to review by the Administrator, on 

the basis of volume of business, and such other factors as may be 

deemed equitable to be taken into consideration. 

SEo. 9. In addition to the information required to be submitted 

to the Code Authority, there shall be furnished to Government agencies such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3 (a) of the National 

Industrial _Recovery Act. 

·ARTICLE VII-UNIFORM CosT AccouNTING 

Each member of the Code shall adopt uniform items in compiling the respective cost of production; and the Code Authority, 

subject to the approval of the Administrator, may determine the 

items which shall be included by each member of the code. in determining his cost of production. 

ARTICLE VIII-UNIFORM SALES CONTRACTS AND ORDER BLANKS 

The Code Authority, subject to the approval of the Administrator, shall prepare a uniform sales contract for all products of the 

industry except fabrics sold to automobile manufacturers, which 

shall be :in accordance with law and with the provisions of this Code, 

and which shall thereupon be used, in substance, by all members 

of the industry. This sales contract shall, in addition to other 

provisions, contain : 

(a) A provision that the price therein is F.O.B. Mill. It shall 

also contain, in substance, such terms of this Code as are material 

to any transaction between buyer and seller. 

(b) A provision that in the event that that style, color, or other 

specifications necessary to filling the order are not specified therein, 

and the buyer shall decline to furnish such specifications at least 

ten days before the respective shipping dates, the seller may, at his 

option, complete the contract upon reasonable specifications. 
270 

( c) In addition to the. foregoing, members of the Code shall include in such sales contract an agreement to arbitrate disputes arisin~ therefrom in accordance with the then rules of the American 

Arbitration Association. 

ARTICLES IX-UNFAIR TRADE PRACTICES 

The following unfair trade practices are prohibited: 

SECTION 1. Term-s and Discounts.-Giving terms of discounts on 

sales, which shall be in excess of net seventy days or 2% discount 

for cash within ten days from actual date of shipment, plus 6% 

per annum for actual anticipation; provided, however, that in the 

case of fabrics sold to automobile manufacturers} such sale may be 

made on a net basis, not to exceed an average of 30 days. 

SEc. 2. Graturities.-Paying gratuities by any member of the industry to purchasers or prospective purchasers, whether in the form 

of money or merchandise, directly or indirectly. 

Sro. 3. Selling on Oonsignment.-Selling merchandise on memorandum or consignment. 

SEc. 4. Returns.-Accepting for return, merchandise sold and delivered in due accordance and compliance with an order or contract, .or selling any merchandise on approval or with privilege of return, 

or accepting or permitting the cancellation or modification as to price 

and terms of any order or contract for merchandise not yet delivered. 

SEc. 5. Samples.-Giving samples of fabrics free of cost except 

color swatches of patterns actually purchased, which shall be no 

larger than 6" x 9"; provided, however, that no more than six of any 

color of any pattern shall be given to any customer in one season; 

and provided, further, that larger bona fide samples may be sent 

on memorandum to be returned within 30 days and if not so re• 

turned, to be billed at the regular price. No allowance or discount 

other than cash discount for merchandise sold is allowed for samples 

to be used in sample books. 

SEc. 6. Style piracy.-The Code Authority, subject to the approval 

of the Administrator may provide for the definition and prevention 

of style piracy. It may provide for the establishment of a central 

bureau, to be made up of a committee, to be selected by the Code 

Authority, subject to the approval of the Administrator, empowered 

to receive and file novelty design and style registrations, to determine questions of style novelty and piracy, and to make reports 

thereon to the Code Authority. 

SEc. 7. S{J)les below cost.-No member of the Industry_shall sell or 

offer for sale any merchandise at a price less than the manufacturer's 

cost of production to be determined by the method provided in 

Article VII of this Code. The Code Authority, subject to the approval of the Administrator shall determine the dates upon which 

the usual season for sale of merchandise ordinarily commences and 

terminates, and shall provide a period during which members of 

the Industry shall be exempt from the provisions of this section. 

This date of sales shall be fixed so as to have as little effect as possible 

on the ordinary sales market during any ordinary selling season. 
271 

ARTICLE X-GENERAL PROVISIONS 

SECTION 1. No provisions of this Code shall be permitted to operate in such manner as to promote or permit monopolies or monopolistic practices or to eliminate or oppress small enterprises or to 

discriminate against them_. 

SEC. 2. Employees shall have the right to organize and bargain 

collectively, through representatives of their own choosing, and shall 

be free from interference, restraint, or coercion, by employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose . of collective bargaining or other mutual aid or protection. 

SEc. 3. No employee and no one seeking employment shall be required as a condition of employment to join any company union, or 

to refrain from joining, organizing, or assisting a labor organization 

of his own choosing. 

SEC. 4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SEc. 5. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of Sub-section (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 Code or any conditions 

imposed by him upon his approval thereof. 

SEC. 6. The Code Authority shall study the provisions of this 

Code and the operation thereof, and shall make to the administrator 

such recommendations as it may deem desirable for modifications or 

additions thereto, which recommendations., or modifications thereof, 

upon his approval and after such hearings as he shall prescribe, 

shall become a part of this Code and have full force and effect us 

provisions thereof. 

SEc. 7. ,vithin each state, members of the industry shall comply 

with any laws of such state imposing more stringent requirements 

regulating licensing, the age, wages, or hours of work of employees, 

than under this Code. 

SEo. 8. It is contemplated that the cost of executing contracts both 

of purchase and sale in the industry entered into prior to the enactment of the National Industrial Recovery Act, or of the adoption of 

this Code, may be increased by the application of the provisions of 

the National Industrial Recovery Act that appropriate adjustments 

of such contracts to reflect such incre,ased costs be arrived at by 

arbitra.l proceedings or otherwise, and the Code Authority is hereby 

constituted an agency to assist in effecting such adjustments. 

SEC. •9. Each employer shall post in conspicuous places full copies 

of this Code. 

ARTICLE XI 

The effective date shall be the second Monday after this Code shall 

have been approved by the President of the United States. 

Approved Code No. 125. 

Registry No. 280-1-0L 0 
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