UN IVERSITY OF FLO RIDA 

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3 1262 08483 0156 ED COPY Registry No. 263-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

AS APPROVED ON OCTOBER 7, 1933 

BY 

PRESIDENT ROOSEVELT 

WI DO OUR PARt 

1. Executive Order 

2. Letter of Transmittal 

3. Text of Code 

l:J)liTED S!J'ATES 

GOVERl\TMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washin2ton, D.C. - - - - - - - - Price 5 cents 

• 
• 

This publication is for sale by the Superintendent of Documents, Government 

P rinting 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. 

India napolis, Ind. : Chamber of Commerce Building. 

Jack:sonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo. : 1028 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: Room 405, 421 West Market Street. 

Memphis, Tenn.: 266 South Water Street. 

Minneapolis, :Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Ya.: 406 East Plume Street. 

Philadelphia, Pa. : Room 812, 20 South Fifteenth Street. 

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.: 1406 Vance Building. 

(ll) 
EXECUTIVE ORDER 

ConE OF FAIR CoMPETITION FOR THE Srr.K TExTILE INDUSTRY 

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

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16th1 1933, for my approval of a 

Code of Fair Competition for the S1lk 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 pursuant 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, it being distinctly 

understood that the minimum wa~e fixed in Article IV applies only 

to the lowest paid class of labor 1n the industry and is a minimum 

wage for that class only, and that weavers, warpers, loom fixers; and 

other skilled and semi-skilled workers shall be paid upon a higher 

wage scale which maintains the dollar differential above the lowest 

paid class as they existed on July" lt.. 1933, in accordance with the 

provisions of paragraph 3 of Article 1 V. 

THE WHITE HousE 

October 7, 1933. 

Approval recommended: 

HuGH S. JoHNsoN, 

Admmistrato-r. 

FRANKLIN D. ROOSEVELT. 

14801°----lB3-177----a3 (DI) 
OcTOBER 6, 1933. 

To the President: 

INTRODUCTION 

Submitted herewith is the report of the Hearing on the Code of 

Fair Competition for the Silk Textile Indu try in the United States1 

as submitted by the Silk As ociation of America, Incorporated, ot 

New York City conducted in the small ballroom of the Willard 

Hotel in \\T a hington, D.C., on September 12, 1933, in accordance 

with the provisions of the National Industry Recovery Act. 

The following papers are included and annexed: 

1. Code as finally proposed 

2. Notice of Hearing 

3. B -Laws of the Silk Textile Industry 

4. Statement of procedure 

5. Li t of witne es 

6. Transcript of the records 

7. Stati tical analysis 

8. Report of Deputy 

In accordance with the customary procedure every per on who had 

filed a reque t for an appearance was freely heard in public, and all 

statutory and regulatory requirements were complied with. 

The Code which it attached \\a pre ented by duly qualified and 

authorized repre entatives of the Industry, complying with the 

statutory requirement , as representing 47.6% in it own member hip 

and approximately 90% in authorization for presentation of the 

Code. 

EVIDENCE SUB)llTTED 

Evidence presented showed that in 1931 the industry employed 

109.000 persons and the value of the product was 376,000,000, shrinkage in the value from $680:000,000 in 1929 being largely repre ·ented 

by decreasing price rather than unit volume. This indu tr is particularly characterized by the exi tence of large numbers of small 

units. Only one third of the m.anufacturers have in\e tments above 

$250,000. 

In the pre entation of the Code, representatives of the I ndu try 

submitted data to show ( 1) that a great portion of their own goods 

are manufactured of rayon; and (2) that a great portion of the rayon 

manufactur d is old at prices above a great deal of the silk merchandi e, the contention being that silk i not to be distingui heel as a 

luxury article but as competitive. Wbile opinion was harply divided as to the de irability of establi hing higher minimum rates for 

weavers in the Indu try, witne e agreed that on account of direct 

competition no more could be paid for weavinO' rayon cloth in ocalled ilk mill than in so-call d cotton mill . It was repeatedly 

(IV) 
v 

testified that weaving must be on the same cost basis for both sets 

of mills. 

The wage level proposed in this code is identical with that in the 

cotton textile code, under which the National Rayon Weavers Association is operating. 

Objection to the wages and hours provision relied on the contention that both the Cotton Code and the Silk Code, if adopted, would 

provide too low a level rather than that silk alone should bear a. 

higher rate. 

A great deal of the testimony in this respect failed to understand 

the extent to which provision for the maintenance of differentials 

protects wages in the upper brackets. Explanation for this is found 

partly in the fact tha~~ in contrast to the other textile industries, 

the minimum wao-e will apply to only about 10% of the employees 

in the Silk Textile Industry. As the public at large and to a considerable extent the witnesses gave attention only to the minimum 

rate and not to provision for maintenance of differential, they 

were primarily conscious of the fact that the minimum is substantially below the wage rate of r.bout 90% of the Industry. In spite 

o:f the consequent protest against the wage rate itself, no evidence 

was submitted against the claim to equal treatment with rayon 

weaving. 

RESUME OF PROVISIONS OF THE CODE 

The code provides for a forty hour work week, allowing for B 

10% tolerance in the case of certain classes of maintenance em· 

ployees, and an average of forty hours over a twelve weeks period 

with respect to others, including office workers. 

Minimum wages are at the rate of $12 in the southern section 

and $13 in the northern section for forty hours of labor. An exception :from this minimum is with respect to learners, not to exceed 5% 

o:£ the total pay roll, during a six weeks apprenticeship, during 

which time they are to receive 80% of this minimum. Provision 

is made :for maintaining previously existing differences between 

classes receiving more than the minimum and special provision is 

made :for adjustment with the approval of the Administrator of 

those cases where this provision results in disparity of wage rates 

ifor the same work. It will be noted that numerous classes of labor 

exempted :from minimum wage provisions in other textile codes 

are not so exempted in this one. 

Provision is made to keep on the pay roll~ some of the physically 

incapacitated by permitting the employment of 1% of the total 

number of such employees at not less than $8 per week. 

Child labor is prohibited. 

Trade objections to the application of details of the provision have 

been largely met by revision of the code. 

The general planning committee set up by the code and de,s.ignated 

to cooperate with the Administrator consists of eleven representatives, so that each of the several branches of the industry as defined 

can be given a voice on the planning and fair practice agency. 

Method of election is to be approved by the Administrator. 
VI 

Extensive provisions are made against style piracy, discriminating 

between customers similarly situated, selling below cost, and the 

making of unconfirmed contracts. Consignment is rigidly restricted. 

Standard terms are set UJ? for nine divisions of the industry. 

Productive machinery 1s limited in its operation to two shifts of 

40 hours per week. 

FINDINGS 

The Administrator finds that: 

(a) This code complies in all respects with the pertinent provisions of Title I of the Act, including without limitation subsection 

(a) of Section 7 and subsection (b) of Section 10 thereof. 

(b) The Silk Association of America to be truly representative of 

the Silk Textile Industry. The By-Laws of this association provide 

no inequitable restrictions to membership. 

(c) The code is not designed to/romote monopolies or to eliminate 

or oppress small enterprises an will not operate to discriminate 

~~ainst them and will tend to effectuate the policy of Title I of the 

..National Industrial Recovery Act. 

(d) "'\Vhile not generally understood by the public, the code provides protection for substantially higher wage level than prevailed 

prior to the initiation of the recovery program. 

(e) The code provides trade practices calculated to bring some 

uniformity of practice into an industry of many small units. 

I recommend that the code be approved. 

Respectfully submitted. 

HuGH S. JoHNsoN, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE SILK TEXTILE 

INDUSTRY 

PREAMBLE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the followin~ provisions are submitted as a Code of 1 

Fair Competition for the Silk Textile Industry, and upon approval 

by the President shall be the standard of fair competition for such 

Industry, and shall be binding upon every member thereof. 

ARTICLE I-DEFINITIONS 

1. The term " industry " as used herein, means the manufacture 

of silk and/or rayon and/or acetate yarn (or any combination 

thereof) woven fabrics or any of the processes of such manufacturing 

except throwing, but it shall not include such manufacturing of rayon 

arid/or acetate yarn fabrics as are governed by the provisions of the 

Cotton Textile Code. The term shall include also the converting of 

the woven fabrics enumerated above, the manufacture of silk, rayoni 

and/or acetate yarn sewing threads, spun silk, woven labels, and shal 

include such other related branches whether engaged in merchandising or manufacturing as may from time to time be brought within 

the provisions of this Code. 

2. The term "employer", as used herein, means any person who 

employs labor in the conduct of any branch of the industry. 

3. The term " employee ", as used herein, means any yerson employed in the conduct of any branch of the industry ( rncluding a 

pr:oprietor, his family, and his relatives doing production work). 

4. The term "productive employee", as used herein, means any 

employee in the industry, except office employees, repair-shop crews, 

engineers, electricians, firemen, supervising staff, and shipping, 

watching, and outside crews. 

'5. The term "productive machinery" as used herein means all 

looms, and all winders, warpers, coppers, or quillers, when used for 

commission work, dressing frames for the spun-silk industry, spooling, coning, balling, tubing, and skeining for the sewing thread and 

floss industry. 

6. The term "person" as used herein means any individual, partnership, association, trust, or corporation. 

7. The word "Association", as used herein means "The Silk Association of America, Inc.'.', or its successor. 

8. The word " Division " as used herein means any branch of the 

industry having a Divisional Committee and operating through the 

Association. . 

9. The term "converting" as used herein means the business of 

owning unfinished or greige goods for the purpose of having same 

(1) 
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processed for one s own account, having same bleached, dyed, or 

printed, and subsequently selling same to the jobbing, cutting, or 

retail trade. 

ARTICLE II 

Employers 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-organizatiOn or in other concerted activities, for the purpose 

of collective bargaining or other mutual aid or protection; 

2. That 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; and 

3. That employers shall comply with the maximum hours of labor-1 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

ARTICLE III-HoURs oF LABOR AND MAcHINERY HoURs 

1. Employers shall not operate on a schedule of hours of labor for 

their productive employees in excess of :forty ( 40) hours per week 

and they shall not operate productive machinery in the industry for 

more than two shifts of :forty ( 40) hours each per week. 

2. No other employee (excepting repair-shop crews, engineers, 

electrician.s, firemen, supervising staff, shipping, watching, and outside crews) shall work more than 480 hours in any twelve weeks, an 

average of 40 hours a week; and not more than 48 hours in any one 

week. 

3. The maximum hours of labor of repair-shop crews engineers, 

and electricians shall except in case of emergency work, be 40 hours 

a week with a tolerance of 10 percent. Any emergency time in any 

establishment shall be reported monthly through the A sociation to 

the General Planning Committee hereinafter provided. A schedule 

of maximum hours for outside crews shall be submitted to the Administrator :for approval not later than January 1, 1934. Overtime 

above 40 hours to be paid :for at time and one th1rd. 

4. Where a State law specifies a lower maximum number of hours 

that must not be exceeded, the requirements of such State law shall 

govern within that State. 

5. The provisions for maximum hours establishes a maximum number of hours of labor per week for each employee so that under no 

circumstances shall any employee be employed or permitted to work 

for more than one employer in the aggregate in excess of the prescribed number of hours. 

ARTICLE IV-MrN!l\IUM WAGES 

1. The minimnm wage that shall be paid by employers to any of 

their employees-except learners-shall be at the rate of $12 per 
3 

week when employed in the Southern section and at the rate of $13 

per week when employed in the Northern section, for forty hours 

of labor. The Southern section shall include the States of Virginia, 

North Carolina, South Carolina, Georgia, Tennessee, Alabama, Mississipp,i, Louisiana, Texas and Florida ; the word Northern section ' are defined to mean the rest of the United States. 

2. A learner is hereby defined as one who has served an apprenticeship of less than six weeks in the industry and the rate of J?ay of such 

employees shall not be less than 80 per cent of the minrmum rate. 

For the purpose of wage classification, learners in any plant hall 

not exceed 5 percent of the total number of employees in that plant. 

3. The amounts as of July 1 1933 by which wages in the higherpaid classes up to $30 per week, exceed wages in the lowe t-paid 

classes, shall be maintained. But no employer, upon obtaining the 

consent of the Administrator, need increase wages in the higher-paid 

classes beyond those maintained by other employers -who have increased their wages in accordance with the above provision for tho 

same class or kind of labor in the same wage district. 

4. Employees who are physically incapacitated may, of their own 

volition, waive their right to minimum wages, but no employer shall 

employ such workers at less than standard piece rates or at less than 

the rate of $8.00 per week for time work; no employer employing 

one hundred (100) or less employees may include within the category 

of physically incapacitated employees more than one (1) such employee; and no employer employing more than one hundred (100) 

employees shall include within such category more than one (1) 

percent of his employees. 

ARTICLE V-AGE LIMIT 

No person under the age of sixteen shall be employed in the industry; it is provided, however, that where a State law provides a 

higher minrmum age, no _person below the age specified by such State 

law shall be employed within that State. 

ABTicLE VI-An~IINI TRATIVE AGENCY 

1. To effectuate further the policies of the Act, a General Planning 

Committee is hereby designated to cooperate with the Admini trator 

as a Planning and Fair Practice Agency for the industry. The 

Committee shall consist of eleven representatives of the industry 

elected by the members of the Association and such other employers 

as agree to bear their proportionate cost of the administration of this 

Code. This Committee shall be chosen by a fair method of selection, 

approved by the Administrator and shall have in addition not more 

than three members without vote appointed by the President of the 

United States. Such agency may from time to time present to the 

Administrator recommendations based on conditions in the industry 

as they may develop, which will tend to effectuate the operations of 

the provisions of this Code and the policy of the Act. Such recommendations, when approved by the Administrator shall have the 

same force and effect as any other provisions of this Code. 
4 

2. Such Committee shall not present to the Administrator anr, 

Code or proposed amendment of any Code affecting any "Division ' 

of the Industry without first conferring with that "Division" or 

its representatives, and if such "Division" does not consent thereto, 

giving the division notice of date of proposed presentation. 

3. No "Division " shall make any application to the Administrator 

for the approval of any Code or amendment thereof without first 

notifying such Committee and giving it notice of the proposed date 

of presentation and hearing thereof. 

4. The expenses of the administration of this Code shall be equitably assessed by the Committee against the members of the Association and all other employers who signify their assent to bear a pro· 

portionate share of such expenses. 

ARTICLE VII-REPORTS 

1. 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 industry is taking appropriate steps to effectuate 

the declared policy of the Act, each employer will furnish the General 

Planning Committee, as and when required, with duly certified reports in substance as follows and in such form as may hereafter 

be provided : 

(a) W (])ges and hours of labor.-Returns every four weeks showing 

actual hours worked by the various occupational groups of employees 

and minimum weekly rates of wa&es. 

(b) Machinery data.-Mills having no looms but doing commission 

warpin~, winding copping and/or 9uilling, and other activities specified under "productive machinery ' must furnish every four weeks 

such reports and information called for pursuant to the provisions 

of this or any amended Code. In the case of mills that have looms2 

returns shall be made every four weeks, showing the number of 

looms in place, the number of looms actually operated each week, 

the number of shifts, and the total number of loom hours each week. 

(c) Reports of production, stocks, and orders.-Weekly return!:~ 

showing production, in terms of the commonly used unit, i.e., linear 

yards or pounds or pieces; stocks on hand, both sold and unsold, 

stated in the same terms, and unfilled orders stated also in the same 

terms. The "Association " address 468 Fourth Avenue, New York 

City, is constituted the agency to collect and receive such reports. 

2. Each person shall, from time to time upon request of the 

Administrator or of the General Planning Committee approved by 

the Administrator, furnish any other reports and information called 

for pursuant to the provisions or pertinent to the purposes of this or 

any amended Code. • 

ARTICLE VIII-CoMPETITIVE PRACTICES 

1. Every employer shall grant equal terms and prices to all persons 

making the same or similar purchases or offers to purchase from him. 

2. No employer shall sell or take orders to manufacture below his 

cost of production. The General Planning Committee shall, subject 

to the approval of the Administrator, denne "cost of production" 
5 

tor the purposes of this Code and the foregoing provision of this 

paragraph shall not become effective until such definition ha been 

approved by the Administrator. 

3. Where goods are shipped on consignment or memorandum every 

employer shall r equire payment within ten days of receipt, at the 

invoice rate of the date of shipment, unless goods are sooner returned except where defects are not discoverable by the buyer after 

reasonable inspection at the time of delivery, in which case he must 

require an immediate claim upon discovery. 

4. Employers must require all disputes as to claims on fini hed 

merchandise to be made in writing, within ten working days after 

the receipt of the goods by the buyer, and shall refu e to make any 

allowance on goods after they have been cut, except where defects are 

not discoverable by reasonable inspection at any time prior to the 

cutting, in which event the employer must require an immediate 

claim upon discovery. 

5. No employer shall take orders for, or J?rint, or jacquard weave 

any design not registered with the Textile Design Regi tration 

Bureau of the Silk Association of America, Inc., or its successor; or 

do any work on any registered design except with the written consent 

of the person makin-g the registration. This rule shall not apply to 

sewing threads, tie fabrics, tinsel fabrics, and flosses. 

6. Every employer shall require confirmatory signed contracts in 

all transactions in excess of $500 between himself and buyer from or 

sellers to him; shall keep all documents, records, and book entries as 

are necessary to reflect and permit easy ascertainment of on inspection, all transactions1 and all modifications thereof; and shall not 

omit to make or obtain, in whole or in part, any record or document 

usually made in the normal course of business. 

'7. Every employer shall endeavor to effect appropriate adjustment in contracts entered into prior to the effective date of this 

Code, where increased costs or delay will result from the operation 

of this Code. The Association is hereby constituted an agency to 

assist in effecting such adjustments where the facts are not agreed 

upon by the parties. 

ARTicLE IX-AMEND rnNTs, MoDIFICATIONs, AND ADDITIONS 

1. Such of the provisions of this code as are not required to be 

included therein by theN ational Industrial Recovery A-ct may, with 

the approval of the President, be modified or eliminated in such 

manner as may be indicated by the needs of the public by changes 

in circumstances, or by expenence; all the provisions of this code, 

unless so modified or eliminated, shall remain in effect until the 

expiration date of Title I of the National Industrial Recovery Act. 

2. In order to enable the industry to conduct its operations subject to the provisions of this code, to establish fair trade practices 

within the rndustry and with those dealing with the industry and 

otherwise to effectuate the purpose of Title I of the Act, supplementary provisions of this code or additional codes may be submitted from time to time for the approval of the President. 

3. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with provisions 
6 

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

time to time to cancel or modify any order, approval, licensel..rule, 

or re~ulation issued under Title I of said Act and specifically to 

the nght of the President to cancel or modify hl; approval of this 

Code or any conditions imposed by hia:n upon his approval thereof. 

ARTICLE X 

A committee of three shall be appointed by the Administrator to 

study machine load per operative and report to the Administrator. 

ARTICLE XI 

The followin& standard terms for each of the respective divisions 

shall be adhered to: 

BROAD GOODS WEAVERS AND CONVERTERS 

For raw broad goods, terms shall not exceed 60 days. For finished broad goods, the term,s shall not exceed 6/10/60 or a maximum 

of 8/ 10 e.o.m. Additional dating as of the first of the following 

month may be given on any merchandise delivered after the 25th of 

the month and no anticipation shall be allowed at any rate higher 

than 6% per annum. No optional terms to be given. 

HAT BANDS 

For wholesale manufacturers of hats 1n the United States o:f 

America. 

Terms, 10/ 10, e.o.m., 25th of the month as of the first of the following month ; payment to be made in currency check, or if made 

in trade acceptance or note, interest must be paHl at the rate of 6% 

per annum; anticipation to be at the rate of 6% per annum. 

All sales ,shall be made on the basis of .f.o.b. shipping point. Six 

months after date of contract, any goods undelivered shall be billed 

and such billing shall constitute delivery. 

RIBBONS 

All sales of ribbons shall be on the basis of 6/ 10/ 60 or 7/10 e.o.m., 

or its equivalent, shipped after the 25th of the month as of the 

first of the following month. Anticipation at the rate of 6% ~er 

annum. No seasonal datings shall be £:ranted. All past due bills 

shall bear interest at the rate of 6%. No ribbon manufacturer shall 

ship merchandise on consignment or memorandum except to duly 

accredited factors and(or authorized selling agents. Each ribbon 

manufacturer shall register with the Silk Association his authorized 

and accredited agents andjor factors. No goods shall be redyed 

or reprocessed .free of charge. No exchanges shall be made; no 

tender of return shall be accepted after ten days, except in the 

case of merchandise originally submitted as samples and except in 

the case of manufactunng defects not discoverable by reasonable 

inspection at time of delivery, in which case an immediate claim 

must be required upon discovery. All merchandise shall be shipped 
7 

.f.o.b. shipping point. The provision in Article VIII, paragraph 6, 

in regard to confirmation of all order by igned contracts hall 

apply only to orders for future delivery in exce of three weeks. 

Where a contract covers the sale of good in which the a ortments 

are not determined at the time of sale there must be three weeks 

time allowed for delivery to be made. 

SEWING THREADS AND FLOS ES 

No good may be consigned or shipped on memorandum. No 

dating may be allowed. The goods of other sewing thread and 

floss manufacturers mu t not be purchased or exchanged for the 

purpose of ub titntion. Cash discount, 2~ 10 days, e.o.m., may 

not be exceeded, but goods shipped between the 25th and the end of 

the month may, for di count purpose , be considered as shipped 

as of the first of the follo11ing month. No protection to retail accounts on their un old stocks in case of decline in price. Stock protection to Notion Jobbers on 30-day purchases previous to date of 

decline i proper, provided such purcha e do not exceed the stock on 

hand at the time of de line. Should the purcha es amount to more 

than the .stock on hand, the protection will be stock on hand. 

SPECIAL FABRICS 

Shipping on memorandum and billing at a later datB constitutes 

an unfair method of competition as it defeats uniform selling terms. 

Any goods in\oiced on memorandum which are subsequently invoiced regularly shall be billed on the date of shipment on memorandum. At the beginning of the spring season spring goods are to 

be dated no later than December 1, and at the beginning of the fall 

season fall goods are to be dated not later than July 1. On finished 

merchandise the maximum terms are to be 6%, 10 days, and 60 days' 

dating, or a maximum of 8%, 10 days e.o.m., goods shipped after 

the 25th of the month to be dated from the first of the following 

month. 

SPUN YARNS 

Maximum discount shall be 2%, 10 days e.o.m. Allowance for 

cooperative advertising and sale promotion between buyer and seller 

may be permitted on novelty yarns. Purcha ers shall not be allowed 

nny commi sions bonu es, rebates, sub idies, or privileges of any 

kind, whether in form of money, services or otherwise. No closeout sales shall be made without the permission of the Divisional 

Planning Committee. 

TIE FABRICS 

6/ 10/60, no ·e.o.m., dating. Anticipation at the rate of 6% per 

annum. Interest shall be paid on deferred deliveries at the rate of 

6% per annum. Not more than sixty days shall elapse between 

delivery of samples and delivery of merchandise. No orders for 

sam pie lengths shall be taken without orders for goods for later delivery. No extra dating shall be given on samples. No member of 
8 

the Tie Silk Industry shall ship merchandise on consignment or 

memorandum except to his duly accredited agent. 

WOVEN LABELS 

Shipping on memorandu111 and billing at another date constitutes 

an unfair method of competition and no goods shall be billed more 

than sixty days after date of shipment. Terms, 2/10 e.o.m. 

THROWN SILK, THROWN RAYON, AND SYNTHETIC YARN DEALERS 

All transactions between buyer and seller shall be confirmed by 

signed contracts and subject to following terms: To Hosiery Manufacturers, 1/10 e.o.m., net 60 days' trade acceptance from date of 

shipment; to Weavers, 10 days, 1% net 60 days' trade acceptance 

from date of shipment. Interest shah be paid on deferred deliveries 

at the rate of 6% per annum. 

ARTICLE XII 

This Code shall become effective on the second Monday following 

its approval by the President. 

0