UNIVERSITY OF FLORIDA

3 1262 08486 7711 Registry No. 231-11

NATIONAL RECOVERY ADMINISTRATION

PROPOSED CODE OF FAIR COMPETITION

FOR THE

WHOLESALE MACHINE-MADE LACE

AND EMBROIDERY INDUSTRY

AS SUBMITTED ON SEPTEMBER 1, 1933

HRA

jk, MEMBER

WE DO OUR PART

The Code for the Wholesale Machine-Made Lace and Embroidery Industry

in its present form merely reflects the proposal of the above-mentioned

industry, and none of the provisions contained therein are

to be regarded as having received the approval of

the National Recovery Administration

as applying to this industry

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

For sale by the Superintendent of Documents. Washington, D.C. - - - - - - - Price 5 cents
SUBMITTED BY

EMBROIDERY MERCHANTS ASSOCIATION, INC.

(II)
APPLICATION TO THE PRESIDENT OF THE UNITED

STATES FOR APPROVAL OF A CODE OF FAIR COMPETITION FOR THE MERCHANTS ENGAGED IN THE WHOLESALING OF MACHINE-MADE LACES AND EMBROIDERIES

UNDER THE PROVISIONS OF SECTION 3 OF TITLE I OF THE

STATUTE ENTITLED "AN ACT TO ENCOURAGE NATIONAL

INDUSTRIAL RECOVERY, TO FOSTER FAIR COMPETITION, AND

TO PROVIDE FOR THE CONSTRUCTION OF CERTAIN USEFUL

PUBLIC WORKS, AND FOR OTHER PURPOSES"

1. Defnitions.-The term " Lace and Embroidery Merchants " as

used herein, is defined to mean those engaged in the wholesale distribution of the products of the Levers, Go-through, Mechlin, Bobbinet, Ba rmen Circular, Pusher, Schiffli, and other embroidery

machines, other than manufacturers.

2. This application is made by the Embroidery Merchants Association, Inc., represented by a committee of its Board of Directors

consisting of Lewis H. Hollander of L. H. Hollander & Company

of New York City; H. Albert Philips of the American Fabrics Company of Bridgeport, Conn.; Herbert Lehmann of J. & H. Lehmann,

Inc., of New York City: Nat Rann of Wasserman & Rann. Inc., of

New York City; Kurt Lehman of Lido Embroidery Company of

New York City; Edwin Lichtig of Edwin Lichtig, Inc., of New

York City; and Clement J. Driscoll, Executive Director of the Embroidery Merchants Association, Inc. This Association represents

approximately 75% of the wholesale distribution of domestic embroideries. The Association has imposed no inequitable restrictions

on admission to its membership and believe it is truly representative

of the Embroiderv Merchants of the United States.

3. The Embroidery Merchants Association. Inc., has been in existence for more than a year, and is the only Association representing

the wholesalers of domestic laces and embroideries exclusive of

manufacturers.

4. The Committee of the Board of Directors listed above has been

constituted for the purpose of cooperating with the President in

effectuating the purposes of the National Industrial Recovery Act

by formulating provisions for a code of fair competition for the

trade. It has been actively engaged in ascertaining the views of

the various units engaged in our trade, and is familiar with aid

has a wide knowledge of the conditions of the trade.

5. This committee has received the unqualified authorization of

approximately three fourths of the sales volne of the embroidery

merchants to act on their behalf with respect to the foritilation and

adoption of a Code of Fair Competition. under the National Iii(dustrial Recovery Act.

6. This application is hereby made under the provisions of Section

3 of Title I of the National Inidustrial Recovery Act for approval by

the President of the proposed Code of Fair Competition for the

9142-:,:
merchants engaged in wholesaling of machine-made laces and embroideries, suhiiitted herewith and attached hereto.

7. To assist in carrying out the provisions and purposes of the

National Industrial Recoverv Act and rules and regulations made

pursuant thereto and the Code of Fair Competition submitted herewith and for the formulation of such further code provisions as may

be necessary to insure fair competition and to effectuate the provisions of the Act, it is requested that the Embroidery Merchants

Association, Inc., be constituted as an agency for these purposes.

Respectfully submitted.

EMBROIDERY MERCHANTS ASSOCIATION, INC.,

By CLEMENT DRISCOLL, Executive Director.

Code Committee of Board of Directors:

LEwis H. HOLLANDER, H. ALBERT PHILIPS,

L. H. HOLLANDER & CO. AMERICAN FABRICS Co.

HERBERT LEHMANN, NAT RANN,

J. & H. LEHMANN, INC. WASSERMAN & RANN, INC.

KURT LEHMAN, EDWIN LICIITIG, LIDo EMBROIDERY CO. EDWIN LICHTIG, INC.

AUGUST 21, 1933.
COPY OF THE PROPOSED CODE OF FAIR COMPETITION

FOR THE MERCHANTS ENGAGED IN THE WHOLESALING

OF MACHINE-MADE LACES AND EMBROIDERIES

To effectuate the policy of Title I of the National Industrial Recovery Act, during the period of the emergency by reducing and

relieving unemployment, improving the standards of labor, eliininating competitive practices destructive of the interests of the publie, employees and employers, relieving the disastrous effects of

overcapacity, and otherwise rehabilitating the business of selling

machine made embroidered fabrics, embroideries, and laces, and by

increasing the consumption of industrial and agricultural products

by increasing purchasing power, and in other respects, the following provisions are established as a code of fair competition for

the lace and embroidery merchants:

I

Deinitions .- The term "Lace and Embroidery Merchants " as

used herein, is defined to mean those engaged in the wholesale distribution of the products of the Levers-Go-Through, Mechlin, Bobbinet, Barmen Circular, Pusher, Schiffli, and other embroidery

machines, other than manufacturers.

The term "employees" as used herein, shall include all persons

employed in the conduct of the wholesale distribution of laces and

embroideries.

The term "employers " shall mean all persons who employ labor

in the conduct of the wholesale distribution of laces and embroideries.

The term "effective date " as used herein is defined to be the

second Monday after the approval by the President of the United

States, of this Code, or any part thereof or addition thereto.

The term " persons " shall include natural persons, partnerships,

associations, trusts, including trustees in bankruptcy and receivers

and corporations.

II

On and after the effective date, the minimum wage that ,hall be

paid by employers in the wholesale distribution of laces and embroideries to any of their employees shall be at the rate of $13.00

per week for forty hours of labor.

III

On and after the effective date employers in the wholesale distribution of laces and embroideries shall operate on a schedule of forty

hours of labor for all employees with the exception of the executive

(3)
4

heads of variouii departments who earn more than $30.00 per week,

and all salesmen.

On and after the effective date employers in the wholesale distribution of laces and embroideries shall not employ any minor under

the age of sixteen years.

IV

With a view to keeping the President informed as to the observance

or nonobservance of this Code of Fair Competition, and as to whether

the hice and embroidery merchants are taking appropriate steps to

effectuate the declared policy of the National Iniustrial Recovery

Act, each person engaged in the wholesale distribution of laces and

embroideries agrees to furnish, duly certified reports in substance as

follows amd in such form as may hereafter be provided.

(a) Returns for every four (4) weeks, showing for each of the

four (4) weeks, immediately preceding. the following:

1. Maximum hours worked by any employee.

2. Minimum rate per week paid to any employee.

(b) Returns every four (4) weeks, showing the total number of

employees in each individual concern.

The Embroidery Merchants Association, Inc., 1457 Broadway, New York City, is constituted the agency to collect and receive such

reports, to administer this Code and to collect from each merchant

engaged in the wholesale distribution of laces and embroideries the

necessary funds to properly administer this Code.

y

To further effectuate the policies of the Act, the Embroidery Merchants Association, Inc., the applicants herein, or such committee or

committees as may hereafter be constituted by the action of the Embroidery Merchants Association, Inc., is set up to cooperate with the

Administrator as a planning and fair practice agency for the wholesale distribution of laces and embroideries. Such agency may from

time to time present to the Administrator recommendations based

on conditions in the industry as they may develop from time to time

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

Code and the policy of the National Industrial Recovery Act, and

in particular along the following lines:-

(a) Recommendations for the regulating of copying of designs of

laces and embroideries.

(b) Recommendations to promote the stabilization of the industry to prevent and eliminate unfair and destructive competitive prices

and practices.

(c) Recommendations to the prosecution as violation of the terms

and provisions of this Code, misleading, advertising, misbranding,

and mislabeling, and false invoicing, same to be deemed as fraudulent and deceptive practices. Complaints effecting the above shall

be reviewed by an Arbitration Board selected in accordance with

the rules and regulations of the American Arbitration Society.

(d) Recommendations that the Code provide that inducing breach

of contracts, espionage, piracy of designs, enticement of employees,

imitation of trade names, etc., shall be deemed as to be misappro-
priation of competitors' business and shall be piuishable as a violation of this Code. Complaints concerning such cases shall be heard

by an Arbitration Board selected in accordance with the rules and

regulations of the American Arbitration Society.

Such recommendations, after hearing and when approve(l by the

President of the United States, shall have the same force and effect

as any other provisions of this Code.

VI

The same agency is also to cooperate with the Administrator in

making investigations as to the functioning and observance of any

of the provisions of this Code, at its own instance. or on complaint

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

VII

T he same agency is also prescribed for the purpose of cooperating

with the domestic lace and manufacturing industry and the domestic embroideryv manufacturing industry to the end that this Code

be made effective and maintained insofar as their respective industry

may determine as to the sale and distribution of laces and embroideries in the United States is concerned.

The constituted agency is empowered:

1. To administer the provisions of this Code.

2. To formulate the rules for the operation of this Code.

3. To hear complaints against any member cliarged with the

violation of this Code or the National Industrial Recovery Act, and

dispose of such complaints as it may see fit.

4. To institute proceedings against any person or persons for the

violation of this Code or the National Industrial Recovery Act.

5. To make or cause to lie made investigations of the business of

any person or persons, namely, the books of account, in order to

insure the observance of and compliance with the provisions of this

Code and the National Industrial Recovery Act.

6. To recommend to the Administrator the licensing of a, person

or persons engaged in the wholesale distribution of laces and embroideries who do not conform to the provisions of this Code.

7. To obtain such trade statistics and information from persons

in the industry as it may deem prudent for the surveys and compile

such reports as it may deem proper for the best interests of the

industry.

VIII

The Embroiderv Merchants Association, Inc.. shall make no inequitable requirements for admission and it shall be representative

of the lace and embroidery merchants. Any person, partnership, or

corporation engaged in the wholesale distribution of laces and embroideries may become a member of this organization.

Ix

This Code is not designed to promote monopolies nor shall it be

administered so as to eliminate or oppress small enterprises and it

will not operate to discriminate against them.
6

X

It shall be deemed a violation of this Code to give or permit to be

given to any buyer, customer, or individual, directly or indirectly,

any allowance, rebate, commission, or refund, in the form of money

or otherwise.

XI

The established terms of this industry shall include no greater

discount than 8 percent, ten days, end of month; or 7 percent, ten

days, 60 days extra, on laces, trimmings, and neckwear; and 2 percent, ten days, end of month for embroidery work done on customer's

material; and 3 percent, ten days, end of month, or 2 percent, ten

days, 60 days extra on all other embroidered materials, with no

additional dating on any bills.

These terms of the industry shall include no greater discount

other than those mentioned above. It is understood, however, that

where payment is made on the basis of ten days, end of month, it

shall be permissible to grant dating as of the first of the following

month on shipments made on and after the 25th of the month.

Anticipations of the payment may be allowed at no more than at

the rate of 6% per annum. Any deviation or variations from the

above established terms of sale, directly or indirectly, shall be

deemed a violation of this Code.

XII

It shall be deemed a violation of this Code for goods to be billed

on memoranda, with the exception of sample pieces to customers,

and in the event that such goods not being returned within ten days, they are to be charged as of the date of shipment.

XIII

Where the costs of executing contracts entered into with the

embroidery merchants prior to the approval of the President of the

United States of this Code are increased by the application of the

provisions of that Act to the industry, it is equitable and promotive

of the purposes of the National Industrial Recovery Act, and appropriate adjustments of such contracts to reflect such increased costs

be arrived at by arbitral proceedings or otherwise, and the Embroidery Merchants Association, Inc., is constituted an agency to

assist in effectuating such adjustments:

XIV

Employers in the wholesale distribution of laces and embroideries

shall comply with the requirements of the National Industrial Recovery Act as follows: "(1) That employees shall have the right to

organize and bargain collectively through representatives of their

own choosing, and shall be free from the interference, restraint, or

coercion of employers of labor, or their agents, in the designation of
such representatives or in self-organizatiin, or in other coiicerted

activities for the purpose of collective bargaining, or other mutual

aid of protection; (2) that no employee and no one seekiing emplovment 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; and (3) that employers

shall comply with the maximum hours of labor, minimum rates of

pay, and other conditions of employment, approved or prescribed by

the President.

XV

This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions

of Clause 10 (b) of the National Industrial Recovery Act., from time

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

regulations. issued under Title I of said Act, and specifically 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.

XVI

Such of the provisions of this Code as are not required to be

included therein, by the National Industrial Recovery Act, may

with the approval of the President, be modified or eliminated as

changes in circumstances or experience may indicate. It is contemplated that from time to time supplementary provisions of the

President to prevent unfair competition in price and other unfair

and destructive competitive practices and to effectuate the other

purposes and policies of Title I of the National Industrial Recovery

Act consistent with the Provisions thereof.

Submitted by:

CLEMENT J. DRISCOLL,

Executive Director.

Code Committee:

LEWIS H. HOLLANDER, H. ALBERT PHILIPS,

L. H. HOLLANDER & Co. AMERICAN FABRICS CO.

HERBERT LEHMANN, NAT RANN,

J. & H. LEHMANN, INC. WASSERMAN & RANN. INC.

KURT LEHMAN, EDWIN LICHTIG,

LIDo EMBROIDERY Co. EDWIN LICHTIG, INC.

EMBROIDERY MERCHANTS ASSOCIATION, INC.,

14,57 Broadway, New York, N.Y.

0
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