Approved Code No. 226-Reprint Registry No. 299-50 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR 'fHE 

LIGHT SEWING INDUSTRY 

EXCEPT GARMENTS 

AS APPROVED ON JANUARY 23, 1934 

WE DO OUR PART 

... . "' 

. EPO~ ____ ..,.__ UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON: 193' 

For sale by the Superintendent of' Documenw. Washi~ton, D.C. • • • • • • • • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., 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.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 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. : 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portlan<}, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 

(II) 
Approved Code No. 226 

CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

As Approved on January 23, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Light Sewing Industry Except Garments, 

and hearings having been duly held thereon and the annexed report 

on said Code, containing findings with respect thereto, having been 

made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

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

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved. 

Approval recommended: 

A. D. w filTESIDE, 

HUGH s. JOHNSON, 

Admlinistrator for Industrial Recovery. 

Division Admiinutra!Jor. 

w ASfilNGTON, D.C., 

January t3, 1934. 

11544s •-1573-50--as ( 403) 
THE PRESIDENT, 

The White Howse. 

Srn : This is a report on the Hearing on the Code of Fair Competition for the Light Sewing Industry Except Garments held in 

accordance with the provisions of the National Industrial Recovery 

Act, in the Chinese Room of the Mayflower Hotel, on November 28, 

1933. The Code which is attached was presented by duly qualified 

and authorized representatives of the Industry, complying with statutory requirements, said to represent 75 percent or more in volume of 

each division of the Industry. 

In accordance with the customary procedure ever:y person who had 

filed a request for an appearance was freely heard rn public, and all 

statutory and regulatory requirements were complied with. 

This Code is a combination of a number of separate Codes originally submitted to the Administration. These separate Codes would 

have placed several divisions of this Industry under completely separate documents. Should these Codes have been put through separately, manufacturers of more than one of the articles now mcluded 

within this Code would have been obliged to operate under several 

Codes. Furthermore, a large number of small sewn articles not 

listed specifically in any propo~ed Code might not have been brought 

under the jurisdiction of the Act. 

The tendency of Industry Groups and Associations was to submit 

Codes for their principal items of manufacture, but to overlook or 

fail to include the many small items made by them. It would be 

almost impossible to enumerate these many small items in separate 

Codes. Had they been included in the definition of the larger separate sewing codes other than garments, manufacturers would have 

found themselves operating under a multiplicity of such codes. Accordingly, the Code submitted herewith is designed to coordinate all 

sewn articles other than garments that have not or are not being 

granted separate Codes. 

THE INDUSTRY 

The Industry as represented by the seven divisions now specifically 

included in the Code comprises about 232 concerns, having an investment in 1933 of $16,323,400. In 1928 the Industry provided employment for 10,821 employees. This figure has declined to about 8,404 

workers during 1933. The aggregate annual sales have fallen from 

$42,553,270 in 1928 to $30,534,100 in 1932. 

PROVISIONS OF THE CODE 

The Code provides for a minimum wage of 321⁄2 cents per hour. 

Employees in the Fabric Auto Equipment Division, however, may 

be paid at the rate of 30 cents per hour in the South. The weekly 

(404) 

, 
405 

compensation for employment in excess of the m1mmum wages 

provided in this Code shall not be reduced although the hours of 

work have been reduced and provision is made for increasing the 

pay for such employment by an equitable readjustment of all pay 

schedules. 

Office employees are permitted to work 48 hours in any one week 

provided they do not work more than 40 hours per week averaged 

over a period of two months. Hours of work for factory employees 

are limited to 40 hours in any one week and 8 hours in any 24-hour 

period except that these employees are permitted to work 48 hours 

per week for not more than six weeks in any six months' period provided that the number of hours shall not be in excess of 40 hours per 

week averaged over a six months' period, and provided further that 

all hours worked in excess of 40 hours in any one week shall be paid 

for at not less than one and one third ( 11/s) times the normal rate. 

Employees in a supervisory capacity receiving $35 per week or more, 

watchmen and outside salesmen are not limited as to hours. Employees on emergency repair work are excepted from the maximum 

hour provisions but are to be paid time and one third for overtime 

work. Maintenance employees are permitted to work 44 hours per 

week. Operations are limited to one shift of 40 hours in the Mattress 

Cover Division and two shifts of 40 hours each per week in all the 

other di visions. 

Hours of work have been reduced from 47 to 40 by the application of this Code. Accordina to the Division of Research and 

Planning, the actual number ofhours that this Industry will operate 

under the provisions of the Code will be approximately 37 hours per 

week, so that the effect will be to reduce the hours of work between 

15 and 20 percent and increase employment in the same proportion. 

Average wages in this Industry will be increased fr0m $13.00 to 

approximately $15.00 per week. This represents a substantial increase since the minimum wages must be raised considerably to 

account for this change in average wages. 

Representation on the Code Authorit:y is provided for all members 

of the Industry. The Code sets up Divisional Committees to admin--

ister the supplemental fair trade practices for the separate divisions 

of this Industry. 

There are no highly restrictive provisions in the Code itself. 

Provision is made for prohibiting the sale of merchandise below 

cost in certain divisions when and if a uniform and standard system 

of cost accounting is approved by the Administrator. No such 

provision, however, will become effective without further approval 

of the Administrator. 

FINDINGS 

I find that: 

(a) Said Code is well designed to promote the policies and 

purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and manage-
406 

ment under adequate governmental sanction and superv1s1on, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

by avoiding undue restriction of production ( except as may be 

temporarily required) , by increasing the consumption of industrial 

and agricultural products through increasing purchasing power, by 

reducing and relieving unemployn1ent, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 

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

associations are industrial associations truly representative of the 

aforesaid Industry; and that said associations impose no inequitable 

restrictions on admission to membership therein. 

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

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress 

8mall enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these reasons, this Code of Fair Competition for the Light 

Sewing Industry Except Garments has been approved. 

Respectfully, 

JANUARY 23, 1934. 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

ARTICLE I-PURPOSES 

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 Light Sewing Industry Except Garments, and shall be the standard of fair competition for such 

Industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term " Light Sewing Industry Except Garments " or 

"Industry" as used herein includes the manufacture .and original 

sale of all sewn textile articles and/ or table pads and/ or table mats 

except wearing apparel and excepting such articles as are governed 

by the provisions of other codes of fair competition, and shall 

include such related branches or subdivisions as may from time to 

time be included under the provisions of this code by the President 

of the United States after such notice and hearing as he may 

prescribe. 

2. The terms " table pad " and " table mat " as used herein are 

defined to mean any mat manufactured for use in protecting the surface of tables against heat, liquids, or marring, composed of a 

water-proof surface and an insulating element such as asbestos, cork, 

pasteboard, felt paper, or corrugated paper. 

3. The term "member of the Industry" includes, but without 

limitation, any individual, partnership, association, corporation, or 

other form of enterprise engaged in the Industry either as an employer or on his or its own behalf, and includes anyone who furnishes or contracts for labor as a part of a larger or further operation 

in the process of manufacturing any of the products of this Industry. 

4. The term " employee " as used herein includes any and all persons engaged in the Industry however compensated, except a member 

of the Industry. 

5. The term " employer " as used herein includes anyone by whom 

any such employee is compensated or employed. 

6. The term" productive machinery" as used herein and as applied 

to the divisions of this Industry is defined: 

(a) For the Quilting Division: Quilting machines. 

( b) For the Comfortable Division: Hand-guided sewing machines 

and hand-needle work equipment, and automatic quilting machines. 

(407) 
408 

( c) For the Covered Carpet Padding Division: Carpet lining, 

sewing and quilting machines, garnetts, lappers, pickers, stitching 

and bending machines, and cloth-cutting machines. 

7. The term "Act " and "Administrator " as used herein mean 

respectively Title I of the National Industrial Recovery Act and the 

.Admjnistrator for Industrial Recovery. 

ARTICLE III-HoURs 

1. No office employee shall work or be permitted to work in excess 

of forty ( 40) hours per week, averaged over a period of two months, 

or forty-eight ( 48) hours in any one week or eight ( 8) hours in any 

twenty-four (24) hour period. 

2. No other employee, except as hereinafter provided, shall work 

or be permitted to work in excess of forty ( 40) hours in any one week 

or eight (8) hours in any twenty-four (24) hour period, except that 

such employees may be permitted to work forty-eight ( 48) hours per 

week for not more than six (6) weeks in any six-month period, provided that the number of hours shall not be in excess of forty ( 40) 

hours per week averaged over a six months' period. Work done in 

excess of forty ( 40) hours in any one week, however, shall be paid 

for at not less than one and one third ( 11/2) times the normal rate. 

3. The maximum hours fixed in the foregoing sections shall not 

apply to: 

(a) Executives and employees in a managerial or supervisory capacity who receive thirty-five dollars ($35.00) or more per week, 

watchmen, and outside salesmen. 

(b) Repair-shop crews, engineers, electricians, and firemen, who 

shall be permitted to work not in excess of forty-four (44) hours per 

week. 

( c) Employees on emergency maintenance or emergency repair 

work involving breakdowns or protection of life or property, but in 

any such special case overtime shall be paid for at not less than one 

and one third (11/3 ) times the normal rate. 

At the end of each calendar month every employer shall report to 

the Code Authority hereinafter provided for, in such detail as may 

be required, the number of man-hours worked in that month in cases 

of emergency and the ratio which said emergency man-hours bear to 

the total number of man-hours of labor during said month. 

4. Members of the Industry shall not operate for more than two 

(2) shifts of forty ( 40) hours each per week, except as provided 

hereafter in supplemental provisions. 

5. No employee shall work or be permitted to work for a total 

number of hours in excess of the number of hours prescribed for 

each week and day, whether employed by one or more employers. 

ARTIOLE IV-WAGES 

1. No employee shall be paid at less than the rate of 321⁄2 cents 

per hour except that employees in the Fabric Auto Equipment Division may be paid at the rate of not less than 30 cents per hour in th 

Southern States, which shall include only the States of Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mis-
409 

s1ss1ppi, Tennessee, Kentucky, Louisiana, Arkansas, Oklahoma, 

Texas, and the District of Columbia. 

2. This Article establishes a minimum rate of pay, regardless of 

whether an employee is compensated on a time-rate, piecework, or 

other ha is. 

3. The weekly rate of compensation for employment now in excess 

of the minimum wages herein provided shall not be reduced (not • 

withstanding that the hours worked in such employment may be 

hereby reduced), and the pay for such employment shall be 

increased by an equitable readjustment of all pay schedules. 

4. Female employees performing substantially the same work as 

male employees shall receive the same rates of pay as male employees. 

5. A rerson whose earning capacity is limited because of age or 

physica or mental handicap may be employed on light work at a 

wage below the minimum established by this Code if the employer 

obtains from the State authority designated by the United States 

Department of Labor a certificate authorizing his employment at 

such wages and for such hours as shall be stated in the certificate. 

Each employer shall file with the Code Authority a list of all such 

persons em ployed by him. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under sixteen (16) years of age shall be employed in 

this Industry. In any State any employer shall be deemed to have 

complied with this provision 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. 

2. Employees shall have the right to organize and bargain collectively through representatives of their own cho~sing, 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. 

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. 

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. 

5. Within each State members of the Industry shall comply with 

any laws of such State imposing more stringent requirements on 

employers regulating the age of employees, wages, hour · of worK, or health, fire, or general working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

7. Each employer shall post in conspicuous places accessible to 

employees full copies of this Code. 

8. Until adoption of further provisions of this Code that may 

prove nece sary in order to prevent any improper speeding up of th'e 

115448°-1573--50--35-2 

# 
410 

work (stretch-outs) no manufacturing employee in the Industry shall 

be required to do any work in excess of the practice as to the class of 

work of such employee prevailing on July 1, 1933, or prior to the 

Share-The-Work movement, unless such increase is submitted to and 

approved by the Code Authority created by this Code, and by the 

Administrator. 

9. No employer shall have work done or labor performed on any 

article produced in this Industry in the home of a worker, except 

hand work only as follows: 

(1) Candlewick bedspreads. 

(2) Hand quilted textiles for a period of six months, but thereafter only if specifically exempted by the Administrator. 

ARTICLE VI-ADMINISTRATION 

There shall forthwith be constituted a Code Authority. 

1. Organization and constitution of Code Authority : 

(a) The membership of the Code Authority shall include seven 

(7) members (which number may be increased to ten (10) members 

if and when necessity arises therefor by further inclusion of additional Divisions within this Code) to be selected in a manner 

approved by the Administrator from the following Divisions: 

Quilting, 1 Member. 

Mattress Covers, 1 Member. 

Comfortables, 1 Member. 

Fabric Auto Equipment, 2 Members. 

Other Members of the Industry, 1 Member. 

In additon to the membership as above provided, there may be 

three (3) additional members without vote appointed by the Administrator, one of whom may be appointed on the nomination of the 

Labor Advisory Board of the NRA. 

(b) Divisional Committees consisting of not more than seven (7) 

members each shall be selected by each of the following divisions of 

this Industry in a manner approved or prescribed by the Administrator: Comfortable Division, Covered Carpet Padding Division, 

Fabric Auto Equipment Division, Mattress Cover Division, Table 

Pad Division, and Quilting Division. New divisions of the Industry 

may be established on the recommendation of the Code Authority 

with the approval of the Administrator. The Administrator may 

appoint up to three members, without vote, to each of the Divisional 

Committees. 

( c) In order that the Code Authority and the Divisional Committees shall at all times be truly representative of the Industry and 

in other respects comply with the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and 

thereafter if he shall find that the Code Authority or the Divisional 

Committees are not truly representative or do not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority or 

of the Divisional Committees. 

( d) Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

or a l)1visional Committee shall (1) impose no inequitable restric-
411 

tions on membership, and (2) submit t the Administrator true 

copies of its articles of association, bylaw , regulation , and any 

amendments when made thereto, together with such other information as to membership, organization, and activities a the Administrator may deem nece sary to effectuate the purposes of the Act. 

2. The Code Authority and the Divisional Committees shall have 

the :following duties and pow r : 

(a) The Code Authority hall cooperat with the Admini trator 

in the administration of the provi ions of this Code. The Divi ional 

Committees, subject to the general approval of the Code Authority, 

shall cooperate with the Admini trator in the administration of 

the supplemental provisions ap1 licable to their resp ctive Divi ions. 

(b) The Code Authority may from time to time present to the 

Administrator recommendations based on conditions in the Indu try 

as they may develop which will tend to effectuate the operation of 

the provisions of this Code. The Divi ional Committees may pre ent 

to the Administrator recommendations concernina their re pective 

supplemental provi ions. Such recomn1endations, when approved 

by the Administrator, after notice to and after opportunity given 

to the Divisional Committees of all Divi ions affected to be heard, 

shall have the same force and effect as any of the provisions of this 

Code. Such recommendations may include recommendations for 

use by all members of the Industry in their respective Divisions, 

of an N.R.A. label and for the establishment of the necessary 

machinery to manufacture and issue the same. 

( c) The Code Authority shall collect tatistics covering number 

of employees, wage rates, employee earnings, hour of work, and 

such other data as may be prescribed or approved by the Administrator and may designate the Divisional Committees as the agencies 

to collect such statistics. 

(d) It being fownd necessarry to support the acl1ni1?:istration of 

this Oode in order to effe ctuate the policy of the Act and to maintain 

the standards of fair co11ipetition established hereunder, the Oode 

Authority and Divisional Committees are authorized, subject to the 

approval of the Ad1ninistrator: 

(a) To incur such reasonable obligations as are necessary and 

proper for the fore going pu,rposes and to meet such obligations out 

of funds which shall be held in tru,st for the purposes of the Oode 

and raised as hereinafter provided. 

(b) To submit to the Administrator for his approval, sub.feet 

to such notice and opportunity to be hea:rd as he may deeni necessary. 

(1) An ite11iized budget of their estiniatecl ewpe11.ses for the foregoing purposes, and 

(93) An equitable basis upon which the fi1,ncls necessa1·y to support such budget shall be contribu,tecl by all 1ne1nber of the l ndu. try 

receiving the benefits accruing from the maintenance of such standards, and the administ1·ation the1·eof. 

( c) After such budget and basis of contribi1,tion have been approved by the Ad1ninistrator to determine and secure equitable contributions as abo1!e set forth by r;,ll ~uch members of the I ndustry: 

and to that end, if necessary, to institute legal proceedings the1·efor 

in its own name. 

Only members of the Industry who comply with the requirements of the O ode and contribute to the ewpenses of its admivnistra-
412 

tion, as provided herein, mnd assent in writing to the Oode, shall be 

entitled to prurtiaipate in the selection of the members of the several 

Divisional O om;mittees mnd to receive the benefits of their volwntary 

aotivities or to make use of any National Recovery Adm,inistration 

Insignia. Faivwre to contribute to the ewpenses of the administration of this Code, as provided hereiln, shall constitute a violation of 

the Oode.

1 

( e) Nothing contained in this Code shall constitute the members 

of the Code Authority or of the Divisional Committees partners for 

any purpose, nor shall any member of the Code Authority or of the 

Divisional Committees be liable in any manner to any one for any 

act of any other member, officer, agent, or employee of the Code 

Authority, or of the Divisional Committees, nor shall any member 

of the Code Authority, or of the Divisional Committees, exercising 

reasonable diligence in the conduct of his duties hereunder be liable 

to any one for any action or omission to act under this Code, except 

for his own willful misfeasance or nonfeasance. 

3. 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 Act. 

4. If the Administrator shall determine that any action of a 

Code Authority, Divisional Committee, or any agency thereof is 

unfair or unjust or contrary to public interest, the Administrator 

may require that such action be suspended for a period of not to 

exceed thirty days to afford an opportunity for investigation of 

the merits of such action, and further consideration by such Code 

Authority, Divisional Committee, or agency, pending final action 

which shall be taken only upon approval by the Administrator. 

ARTICLE VII-TRADE PRACTICES 

1. The violation of any provision of this Code or of any supplemental provisions thereto shall constitute an unfair trade practice. 

ARTICLE VIII-MooIFICATION 

1. This Code and all the provisions thereof are expre sly made 

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time 

to cancel or modify any order, approval, license, rule, or regulation issued under said Act. 

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

be modified on the basis of experience or changes in circumstances, 

such modifications to be based upon application to the Administrator, 

and such notice and hearing as he shall specify, and to become 

effective on approval of the Administrator. 

ARTICLE IX-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

1 Italicized words added by .Amendment No. 2, approved May 22, 1934. 
413 

ARTICLE X-EFFECTIVE D A'l'E 

This Code shall become effective on the tenth day after approval. 

Article XI 

Subject to all rules, regulations, and orders concerning issuance 

and/or use of labels heretofore or hereafter prescribed by the National lndustriml Recovery Board, all 1nembers of the Mattress Cover 

Omnfortable and Quilting Divisions of the Industry shall affiw to all 

their JJroducts, official labels issued by the respective Divisional Committees, bearing thereon the N. R. A. insignia, this provision to be 

effective on such date, not later than 45 days after approval of ·this 

Article, as the respective. Divisional Oommwttees mmy presmibe, providing all members of the respective Divisions shall be given drue 

notice of the aforesaid effective date by the resP'ective Divisional 

0 ommittees. 2 

Approved Code No. 226. 

Registry No. 299-50. 

2 Italicized words added by .Amendment No. 6, approved Kov. 14, 1934. 
COMFORTABLE DIVISION 

Di vision No. 1 

I-DEFINITION 

The term " Comfortable Division" as used herein includes all 

members of the Industry producing comfortables and comforts. 

II-TRADE PRACTICES 

1. No member of the Division shall sell or exchange or offer to 

sell any product of the Division below his own cost, when and i:f 

same may be determined as herein provided, except to meet the competition of any member of the Division whose price for a product 

of equivalent quality is not less than his own cost. When a uniform 

and standard system of cost accounting, prescribed by the Divisional 

Committee, shall be approved by the Administrator, every member 

of the Division shall use a system of accounting which conforms 

to the principles of such system. The Divisional Committee shall, 

subject to the approval of the Administrator, determine the cost 

factors to be included in such system. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section and to make provision 

for the disposal of discontinued lines, seconds, a.nd other sales to be 

excepted from the application o:f this Section. 

2. Members of the Division shall file with the Divisional Committee a schedule of prices and terms o:f sale for the products of the 

Division, within thirty (30) days after the effective date of this 

Code. Such price lists may be revised only upon five ( 5) days' notice 

by registered mail to the Divisional Committee. The Divisional 

Committee shall immediately send copies of all price lists filed to all 

members of the Di vision. 

Members of the Division shall not sell their products at lower 

prices or on more liberal terms than set :forth in their own price list. 

When any member of the Division revises his price list, any other 

member of the Division may revise his price list accordingly, to become effective on the same date as the revised price list first filed. 

The following may be .sold without filing revised price lists therefor, but shall be reported to the Divisional Committee immediately 

after sale: dropped lines and seconds. 

The Divisional Committe shall have the power to suspend the 

operation of the provisions of this Section. 

3. The following Unfair Trade Practices are prohibited: 

(a) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose o:f influencing or rewarding the 

action of any employee, agent, or representative o:f another in relation to the business of the employer of such employee, the principal 

(414) 
415 

of such agent or the represented party, without the knowledge of 

such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles commonly 

used for advertising except so far as such articles are actually u ed 

for commercial bribery as hereinabove defined. 

(b) Using or substituting any material inferior in quality to that 

specified by the purchaser of any product. 

( c) Maliciously inducing or attempting to induce the breach of 

an existing oral or written contract between a competitor and his 

customer or source of supply or interfering with or obstructing the 

performance of any such contractual dutie~ or services. ( d) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of 

money or otherwise, or the secret extension to certain purchasers of 

special services or privileges not extended to all purchasers on like 

terms and conditions. 

( e) The branding or marking of any product of the Division in 

any manner which tends to deceive or m.islead purchasers, with 

respect to the grade, quality, quantity, origin, size, material content, 

or preparation of such product. 

(f) Selling on more liberal terms than 3/10 E.O.M. All qoods 

shipped to retailers after May 1, 1nay be billed as ~/ 10/60 or 3/10 

E.O.M., as of August 1. Antioipation at the r(l)te of siw peroent (6% ) 

per year may be allowed. After January 1, business may be solicited 

from wholesalers on a basis of Au.gust 1 datings with usual terms.

8 

(g) The failure to plainly mark seconds. 

(h) The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive st atement 

by way of advertisement or otherwise, whether concerning the grade, 

quality, quantity, substance, character, nature, origin, size, finish, 

or preparation of any product of the Division, or the credit terms, 

values, policies, or services of any member of the Division, or otherwise, having the tendency or capacity to mislead or deceive customers or prospective customers. 

(i) Making sales upon any ~ther t erms than expressly set forth 

in the invoice pertaining to such sales. 

4. The selling or offering for sale of any product of the Division 

on memorandum or on consignment or on conditional sale shall be an 

unfair trade practice. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section. 

• Italicized words added by Amendment No. 4, approved July 17, 1934. 
MATTRESS COVER DIVISION 

Division No. 2 

I-DEFINITION 

The term "Maftress Cover Div?,S?,on" as used herein incl!udes rill 

members of the Industry producing mattress covers; comfortable 

covers; bl,anket covers; and pillow ticks when manufactured for sal,e 

for the purpose of repl,acing ticks on bed prillfYWs.4 

II-TRADE PRAarICES 

1. No member of the Division shall sell or exchange or offer to 

sell any product of the Division below his own cost, when and if same 

may be determined as herein provided, except to meet the competition of any member of the Division whose price for a product of 

equivalent quality is not less than his own cost. When a uniform 

and standard system of cost accounting, prescribed by the Divisional 

Committee~ shall be approved by the Administrator, every member 

of the Division shall use a system of accounting which conforms to 

the principles. of such system. The Divisional Committee shall, sub~ 

ject to the approval of the Administrator, determine the cost factors 

to be included in such system. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section and to make provision 

for the disposal of discontinued lines, seconds, and other sales to be 

excepted from the application of this Section. 

2. Members of the Division shall file with the Divisional Committee a schedule of prices and terms of sale for the products of the 

Division, within thirty (30) days after the effective date of this 

Code. Such price lists may be revised only upon five (5) days' 

notice by registered mail to the Divisional Committee. The Divisional Committee shall immediately send copies of all price lists filed 

to all members of the Division. 

Members of the Division shall not sell their products at lower 

prices or on more liberal terms than set forth in their own price list. 

When any member of the Division revises his price list, any other 

member of the Division may revise his :price list accordingly, to 

become effective on the same date as the revised price list first filed. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section. 

3. The following Unfair Trade Practices are prohibited: 

(a) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee, agent, or representative of another in relation to the business of the employer of such employee, the principal 

of such agent, or the represented party, without the know ledge of 

such employer, principal, or party. This provision shall not be con-

'Italicized words a dded by Amendment No. 1, approved May 1, 1934. 

(416) 
417 

st.rued to prohibit free and general distribution of articles commonly 

used for advertising except so far as such articles are actually used 

for commercial bribery as hereinabove defined. 

(b) Using or substituting any material inferior in quality to that 

specified by the purchaser of any product. 

( c) Maliciously inducing or attempting to induce the breach of 

an existing oral or written contract between a competitor and his 

customer or source of supply, or interfering with or obstructing the 

performance of any such contractual duties or services. 

( d) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of 

money or otherwise, or the secret extension to certain purchasers of 

special services or privileges not extended to all purchasers on like 

terms and conditions. 

(e) The branding or marking of any :product of the Division in 

any manner which tends to deceive or mislead purchasers, with respect to the grade, quality, quantity, origin, size, material content, 

or preparation of such product. 

!

f) Selling on more liberal terms than 3/ 10 E.0.M. 

g) The failure to plainly mark seconds. 

h) The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive statement 

by way of advertisement or otherwise, whether concerning the grade, 

quality, g_uantity, substance, character, nature, origin, size, finish, or 

preparat10n of any product of the Division, or the credit terms, 

values, policies, or services of any member of the Division, or otherwise, having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

(i) Making sales upon any other terms than expressly set forth 

in the invoice pertaining to such sales. 

4. The selling or offering for sale of any product of the Division 

on memorandum or on consignment or on conditional sale shall be 

an unfair-trade practice. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section. 

III-HOURS 

1. Members of the Division shall not operate for more than one 

shift of forty ( 40) hours. 
TABLE PAD DIVISION 

Division No. 3 

I-DEFINITION 

The term " Table Pad Division " as used herein includes all members of the Industry producing table pads and/or table mats. 

II-TRADE PRACTICES 

1. No member of the Division shall sell or exchange or offer to 

sell any product of the Division, except small novelty mats, below 

his own cost of labor and raw materials except to meet the competition of any member of the Division whose price for a product of 

equivalent quality is not less than his own cost. When a uniform 

and standard system of cost accounting, prescribed by the Divisional 

Committee, shall be approved by the Administrator, every member of 

the Division shall use a system of accounting which conforms to the 

principles of such system. The Divisional Committee shall, subject 

to the approval of the Administrator, determine the cost factors to 

be included in su,ch system. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section and to make provision 

for the disposal of discontinued lines, seconds, and other sales to be 

excepted from the application of this Section. 

The Administrator may suspend the operation of the provisions 

of this Section after giving notice to the Division. 

2. Members of the Division shall file with the Divisional Committee a schedule of prices and terms of sale :for the products o:f the 

Division, except small novelty mats, within thirty (30) days after 

the effective date of this Code. Such price lists may be revised only 

upon five ( 5) days notice by registered mail to the Divisional Committee. The Divisional Committee shall immediately send copies 

of all price lists filed to all members of the Di vision. 

Members of the Division shall not sell their products at lower 

prices or on more liberal terms than set :forth in their own price 

list. When any member of the Di vision revises his price list, any 

other member of the Division may revise his price list accordingly, 

to become effective on the same date as the revised price list first filed. 

The Divisional Committee shall have the power to suspend the 

o~ration of the provisions o:f this Section. 

The Administrator may suspend the operation of the provisions 

of this Section after giving notice to the Division. 

3. The :following Unfair Trade Practices are prohibited: 

(a) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

(418) 
419 

action of any employee, a.gent, or representative of another in relation to the business of the employer of such employee, the principal 

of such agent, or the represented party, without the knowledge of 

such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles commonly 

used for advertising, except so far as such articles are actually used 

for commercial bribery as hereinabove defined. 

(b) Using or substituting any material inferior in quality to that 

specified by the purchaser of any product. 

( c) Maliciously inducing or attempting to induce the breach of an 

existing oral or written contract between a competitor and his customer or source of supply, or interference with or obstructing the 

performance of any such contractual duties or services. 

( d) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of money 

or otherwise, or the secret extension to certain purchasers of special 

services or privileges not extended to all purchasers on like terms 

and conditions. 

( e) The branding or marking of any product of the Division 

in any manner which tends to deceive or mislead purchasers, with 

respect to the grade, quality, quantity, origin, size, material content, 

or preparation of such product. 

(f) Selling on more liberal terms than 2% 10 days, end of month, 

net 60 days. 

(g). The failure to plainly mark seconds. 

(h) The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive statement 

by way of advertisement or otherwise, whether concerning the grade, 

quality, guantity, substance, character, nature, origin, size, finish, or 

preparation of any product of the Division, or the credit terms, 

values, policies, or services of any member of the Division, or otherwise, having the tendency or capacity to mislead or deceive customers or prospective customers. 

(i) Making sales upon any other terms than expressly set forth 

in the invoice pertaining to such sales. 

(j) Making any allowances or discounts for advertising or for 

payment for space in newspapers, magazines1 guides, or directories on 

behalf of any retailer to be used in promoting the sale of merchandise to the consumer. The supplying of cuts, matrices, or window 

cards shall, however, not be included in such prohibition. This 

provision shall not be circumvented by advertising directly for the 

benefit of any purchaser or particular group of purchasers. Nothing 

herein, however, shall be deemed to prohibit any member of the Division from nationally or generally advertising his merchandise so 

as to benefit all of his trade equally. 
QUILTING DIVISION 

Di vision No. 4 

I-DEFINITION 

The term " Quilting Division " as used herein includes all members 

of the Industry producing quilting and quilting products. 

II-TRADE PRACTICES 

1. No member of the Division shall sell or exchange or offer to sell 

any product of the Division below his own cost, when and if same 

may be determined as herein provided, except to meet the competition of any member of the Division whose price for a product of 

equivalent quality is not less than his own cost. When a uniform 

and standard system of cost accounting, prescribed by the Divisional 

Committee, shall be approved by the Administrator, every member 

of the Division shall use a system of accounting which conforms to 

the principles of such system. The Divisional Committee shall, subject to the approval of the Administrator, determine the cost factors 

to be included in such system. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section and to make provision 

for the disposal' of discontinued lines, seconds, and other sales to be 

excepted from the application of this Section. 

2. Members of the Division shall file with the Divisional Committee a schedule of prices and terms of sale for the products of the 

Division, within thirty (30) days after the effective date of this 

Code. Such price lists may be revised only upon five ( 5) days' notice 

by registered mail to the Divisional Committee. The Divisional 

Committee shall immediately send copies of all price lists filed 

to all members of the Division. 

Members of the Division shall not sell their products at lower 

prices or on more liberal terms than set forth in their own price list. 

When any member of the Division revises his price list, any other 

member of the Division may revise his price list accordingly, to 

become -effective on the same date as the revised price list first filed. 

"Dropper lines" and/or "seconds" shall be sold a;nd/ or shipped 

07W!J during the 11Wnths of January and August of a11l!J calendar year 

and" dropped lines" and/or" seconds" cannot be sold or shipped at 

any other time. For the 'f>W!'pose of this Seation "seconds " are finished prodiwts 

which have been damaged during the process of manufacturing 

qwi,lts and quilting prod'U(Jts, includvng misprints; a;nd ' dropped 

lines " mre merchandise where the oolor assortment is not compwte or 

where the 77Wrcha;ndise has proved unsalable/' 

1 Italicized words added by Amendment No. 5, appr oved Aug. 8, 1934. 

{420) 

• 
421 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section. 

3. The following Unfair Trade Practices are prohibited: 

(a) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee, agent, or representative of another in relation to the business of the employer o:f such employee, the principal 

of such agent or the represented party, without the knowledge of 

uch employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles commonly 

used for advertising except so far as such articles are actually used 

for commercial bribery as hereinabove defined. 

(b) Using or substituting any material inferior in quality to that 

specified by the purchaser of any product. 

( c) Maliciously inducing or attempting to induce the breach o:f 

an existing oral or written contract between a competitor and his 

customer or source of supply, or interfering with or obstructing the 

performance of any such contractual duties or services. 

( d) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of 

money or otherwise, or the secret extension to certain purchasers of 

special services or privileges not extended to all purchasers on like 

terms and conditions. 

( e) The branding or marking of any product o:f the Division in 

any manner which tends to deceive or mislead purchasers, with 

respect to the grade, quality, quantity, origin, size, material content, 

or preparation of such product. 

(£) Selling on more liberal terms than 3/ 10 E.0.M. 

(g) The failure to plainly stamp seconds. 

(h) The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive statement 

by way of advertisement or otherwise, whether concerning the grade, 

quality, quantity, substance, character, nature, origin, size, finish, 

or preparation of any product of the Division, or the credit terms, 

values, policies, or services of any member of the Division, or otherwise, having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

(i) Making sales upon any other terms than expressly set forth in 

the invoice pertaining to such sales. 

4. The selling or offering for sale of any product of the Division 

on memorandum or on consignment or on conditional sale shall be 

an unfair trade practice. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section. 
FABRIC AUTO EQUIPMENT DIVISION 

Division No. 5 

I-DEFINITION 

The term "Fabric Auto Equipment Division" as used herein 

includes all members of the Industry producing auto seat and slip 

covers, tire covers, top covers, side curtains, auto awnings, and fabric 

accessories for automobiles. 

II-TRADE PRACTICES 

The following Unfair Trade Practices are prohibited : 

(a) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee, agent, or representative of another in relation to the business of the employer of such employee, the principal 

of such agent or the represented party, without the knowledge of 

such employer, principal, or party. This provision shall not be 

construed to prohibit free and general distribution of articles commonly used for advertising, except so far as such articles are actually 

used for commercial bribery, as hereinabove defined. 

(b) The branding or marking of any product of the Division in 

any manner which tends to deceive or mislead purchasers, with respect to the grade, quality, quantity, origin, size, material content, or 

preparation of such product. 

( c) The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive statement 

by way of advertisement or otherwise, whether concerning the grade, 

quality, quantity, substance, character, nature, origin, size, finish, 

or preparation of any product of the Division, or the credit terms, 

values, policies, or services of any member of the Division, or otherwise, having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

( d) The failure to plainly stamp seconds. 

( e) Rendering a bill or statement of account which is inaccurate 

in any particular. 

( f) Failure to show the present 2% excise tax on the invoice as 

a separate item, excepting in the case of those members of the Division who sell to the jobbing or wholesale trade, who shall include 

the excise tax in their selling price. 

(g) The selling or offering for sale of any product of the Division on memorandum or on consignment or on conditional sale shall 

be an unfair trade practice. 

The Divisional Committee shall have the power to suspend the 

operation of the provision of this Section. 

{422) 
423 

(h) Selling on more liberal terms than 2%, 10 days E.0.M., net 30 

except that dating on seasonable merchandise may be allowed, but 

arnticipation shall not be allowed at a rate of more than 1⁄2 of 1% 

per month.6 

(i) Failure to invoice samples of complete products. 

(j) To make awy cillowa:nce or d?JScount for adtvertising or for 

paym,ent for space in newspapers, magazines, guides, or directories 

on b(:;half of (l(l?,y retailer and/or wholesaler to be used in promoting 

the sale of merchandise to the consumer in excess of one-half of the 

cost of the advertisinq; providing, how1

ever, that payment for such 

advertising shall not be made until a copy of the publication containing the advertising together· with receipted bill there/ or is presf:;nted 

to a mernber of the Division. The supplying of cuts, matrices, or 

window card8 shall not be included in such prohibition. Nothing 

herein, however, shall prohibit any member of the Division from 

nationally or generally adveJrtising his merchandise. ( k) To make a contract for a definite quantity of advertising tire 

covers at a stipulated price and to deliver a smaller quantity without 

charging the regular price applying to the quantity delivered. 

( l) To acoept orders for future reqwi,rernents which do not make 

provision for quantities, ewcepting that an average or wnderage of 

10% is aZlowed.6 

Ill 

When a standard system of oost accounting and methods of cost 

finding and/or estirnating capable of use by all members of the 

Division is prepared by the Divisiona,l O ommittee and approved by 

the Administrator, full details concerning said. system shall be made 

ava:ilable to all members of the Division. Thereafter, all members 

of the Division shall determine and/or estimate costs in accordance 

with the principles of such methods. 

Following the approval of such system no rnMnber of the Division shall sell or ewchange or off er to sell any product of the Division 

below his own cost of making such prodruct, ewcept to meet the competition of any member of the Division whose price for a product of 

equivalent quality is not less than his cost of making the product. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Article provid(:;d fiv e days' notice 

is r,iven the Administrator and the members of the Division, and to 

make provisions for the disposal of discontinued lines, seconds, and 

other sales to be ewcepted from the (J)pplication of this Article.6 

IV 

Learners may be employed for a period not ewcf:;eding four (4) 

weeks (J)t a rate of not less than 80% of the mini-mwm wages called 

for in the Oode, provided that no ernployer may em,ploy more thwn 

10% of the total employees as lear_ners, and provided further that 

awy employer may be entitled to one learner at the above specified 

wage, and provided fwrther that no employer ca;n employ as a learner 

any empl01.Jee who has been in the Division of the Industry within 

three years previous to the date of such e-mployment. 6 

• Italici:red words added by .Amendment No. 3, approved June 29, 1931. 
COVERED CARPET PADDING DIVISION 

Division No. 6 

I-DEFINITION 

The term "Covered Carpet Padding Division" as used herein includes all members of the Industry producing padded, quilted, paper, 

and/or cloth covered carpet and rug linings and stair pads. 

Il----TRADE PRACTICES 

1. No member of the Di vision shall sell or exchange or off er to sell 

any product of the Di vision below his own cost, when and if same 

may be determined as herein provided, except to meet the competition of any member of the Division whose price for a product of 

equivalent quality is not less than his own cost. When a uniform 

and standard system of cost accounting, prescribed by the Divisional 

Committee, shall be approved by the Administrator, every member of 

the Division shall use a system of accounting which conforms to the 

principles of such system. The Divisional Committee shall, subject 

to the approval of the Administrator, determine the cost factors to 

be included in such system. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section and to make provision for 

the disposal of discontinued lines, seconds, and other sales to be 

excepted from the. application of this Section. 

2. Member,s of the Division shall file with the Divisional Committee a schedule of prices and terms of sale for the products of the 

Division, within thirty ( 30) days after the effective date of this 

Code. Such price lists may be revised only upon five ( 5) day~ 

notice by registered mail to the Divisional Committee. The Divisional Committee shall immediately send copie.s of all price lists 

filed to all members of the Di vision. 

Members of the Division shall not sell their products at lower 

prices or on more liberal terms than set forth in their own price Ii t. 

vVhen any member of the Di vision revises hi,s price list, any other 

member of the Division may revise his price list accordingly, to 

become effective on the same date as the revised price list first filed. 

The following may be sold without filing revised price lists th refor, but shall be reported to the Divi,sional Committee immediately 

after sale : dropped lines. 

The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Section. 

3. The following Unfair Trade Practices are prohibited : 

(a) Giving, permitting to be given, or directly offering to o-ive 

anything of value for the purpose of influencing or rewarding the 

(424) 
425 

action of any employee, agent or representative of another in relation 

to the business of the employer of such employee, the principal o: 

,such agent or the represented party, without the knowledge of such 

em:ployer, principal, or party. This provision shall not be construed 

to prohibit free and general distribution of articles commonly use<l 

£or advertising except so far as such articles are actually used for 

commercial bribery as hereinabove defined. 

(b) Using or substituting any material inferior in quality to that 

specified by the purchaser of any product. • 

(c) Maliciously inducing or attempting to induce the breach of an 

existing oral or written contract between a competitor and his customer or source of supply, or interference with or obstructing the 

performance of any such contractual duties or services. 

(d) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of 

money or otherwise, or the secret extension to certain purchasers of 

special services or privileges not extended to all purchasers on like 

terms and conditions. 

( e) The branding or marking of any product of the Division in 

any manner which tends to deceive or mislead purchasers, with 

respect to the grade, quality, quantity, origin, size, material content, 

or _P,reparation of such product. 

(£) Selling on more liberal terms than 5/ 10 or 4/ 10/ 60 Ex. 

(g) The making or causing or knowingly permitting to be made or 

published any false, materially inaccurate, or deceptive statement by 

way of advertisement or otherwise, whether concerning the grade, 

quality, quantity, s,ubstance, character, nature, origin, size, finish, or 

preparation of any product of the Division, or the credit terms, 

values, policies, or services of any member of the Division, or otherwise, having the tendency or capacity to mislead or deceive customers 

or prospect1 ve customers. 

(h) Making sales upon any other terms than expressly set forth 

in the in voice pertaining to such sales. 
MOTOR ROBE DIVISION 

Di vision No. 7 

I-DEFINITION 

The term "Motor Robe Division" as used herein includes all 

members of the Industry producing motor robes exclusive of loomfinished, fringed steamer rugs. 

II-TRADE PRACTICES 

1. All deliveries shall be F.O.B. factory or within the Metropolitan District thereof. 

2. The following Unfair Trade Practices are prohibited: 

(a) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

action of any employee, agent or representative of another in relation to the business of the employer of such employee, the principal 

of such agent or the represented party, without the knowledge of 

such employer, principal, or party. This provision shall not be 

construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually 

used for commercial bribery as hereinabove defined. 

(b) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of 

money or otherwise, or the secret extension to certain purchasers of 

special services or privileges not extended to all purchasers on like 

terms and conditions. 

(c) Selling on more liberal terms than 2% 10 days E.O.M. except 

that for shipments made to points west of the Rocky Mountains 

terms shall be 2% 10 days E.O.M. or 2% 10 days after receipt of 

goods. Goods invoiced on and after the twenty-fifth of any month 

may be dated as of the first day of the following month. No anticipation shall be allowed at a greater rate than 6% per annum. 

( d) Making guarantees against price :fluctuations. 

(426) 

0 

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