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Full text of "Code of fair competition for the millinery industry: as approved on December 15, 1933 by President Roosevelt"

/ 

Approved Code No. 151 Registry No. 228—03 



NATIONAL RECOVERY ADMINISTRATION 



CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

AS APPROVED ON DECEMBER 15, 1933 
BY 

PRESIDENT ROOSEVELT 




V.'c DO OUR PART 




1. Executive Order 

2. Letter of Transmittal 

3. Code 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 



For sale by the Superintendent of Documents, Washington, D.C. ...----- Price 5 cent* 



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. 

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Approved Code No. 151 
CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Millinery 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 competi- 
tion 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 other- 
wise, do hereby adopt and approve the report, recommendations, and 
findings of the Administrator and do order that the said code of 
fair competition be and it is hereby approved, subject to the follow- 
ing conditions : 

1. That the provisions of this code shall be in full force and 
effect only until May 15, 1934. Prior to that date, the code authority 
shall make recommendations to the Administrator in regard to the 
continuance or the amendment of any or all provisions of this code. 

2. A special board shall be appointed by the Administrator for 
the purpose of determining after notice and hearing whether the 
scales applying to a particular area, market, or member of the in- 

25092° 244—151 33 (1) 



dustry should be stayed or modified because of great and unusual 
hardship to such area, market, or member of the industry by rejison 
of the application of such scales thereto. 

3. Provision is made in section 5 of article IV by which any 
person on whom undue hardships are imposed may be granted an 
opportunity for relief. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

A dminis trot or. 
The White House, 

December 15, 1933. 



November 17, 1933. 
The President, 

The White House* 
Sir : This is a report of the hearing on the Code of Fair Com- 
petition for the Millinery Industry, conducted in Washington on 
August 1 and 2, in accordance with the provisions of the National 
Industrial Recovery Act. 

PROVISIONS OF THE CODE FOR HOURS AND WAGES 

Factory employment is limited to thirty-seven and one half hours 
per week, except that the Administrator may permit a certain amount 
of overtime during peak periods, should conditions so require. Time 
and one half will he paid for all overtime work. The Code provides 
also that should conditions at any time warrant such a step, the 
Code Authority or the Administrator may further reduce the maxi- 
mum hours. Factory operations are limited to one shift a day, 
five days a week. 

The Code provides a basic minimum of fourteen dollars for em- 
ployees in establishments located in greater New York, in the ter- 
ritory within a hundred-mile radius of the City of Chicago and in 
the States of New Jersey, Pennsylvania, and Connecticut, and a 
basic minimum of thirteen dollars for all other parts of the country. 
Minimum wages are also specified for blockers, operators, cutters, 
and milliners. Such minimum rates vary between forty-five cents 
per hour and one dollar and ten cents per hour. It should be noted 
in particular that the Code establishes machinery for readjustment 
should the wage rates specified prove inequitable. 

The minimum age of employees is fixed at sixteen years, home- 
work is abolished, and manufacturing operations under unsanitary 
conditions are prohibited. 

Economic Effect of the Code 

The thirty-seven-and-one-half-hour normal week for factory em- 
ployees with the additional pay for overtime should tend to level 
employment peaks in this industry and increase the number of 
workers. Inasmuch as style is such an important element in this 
industry, seasonal peaks have been very pronounced. It is hoped, 
however, that the hour provisions of this Code, along with the con- 
trol of style piracy, will do much to even employment throughout 
the year. In the spring of 1929 (peak season) there were 37,760 
workers engaged in this industry. By the spring of 1932 this num- 
ber had declined to 29,790, and by the spring of 1933 to 27,440. 
These figures indicate an unemployment of 10,320 workers at the 
peak of the season. Other things remaining equal, the thirty-seven- 
and-one-half-hour week will require about 28 percent more workers. 

(3) • 



Approximately 75 percent of those now unemployed will be reem- 
ployed as a result of the provisions of this Code. A thirty-five-hour 
week would be required to absorb all unemployment. Because of 
the increased cost involved, however, and the difficulties of further 
readjustment, it was thought better to allow thirty-seven and one 
half hours per week at the present time and in the future to reduce 
the hours still further should conditions so require and so permit. 

There is no information available to allow an estimate of the 
increase in the pay roll attributable to the wage provisions of this 
Code. It is evident, however, that the increase will not be great 
since there are not many unskilled workers and since a good part of 
the skilled workers whose minimum wages are set by this Code, 
customarily, in New York at least, receive higher than the wages 
specified. Such increase in pay rolls as these provisions will bring 
about will effect primarily the manufacturing centers outside of 
New York. A considerably larger increase in pay roll will result 
from reduction of the work week. The reduction of hours alone will 
add about 28 percent to the present pay roll. 

The percentage ratio to the value of product is 22.5. An increase 
in the pay roll of 28 percent would, therefore, raise the factory 
selling price 6.3 percent. Consequently, in this industry at least, 
purchasing power will be increased much more rapidly and to a 
much greater extent than prices. 

FINDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limita- 
tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

(b) The applicant groups impose no inequitable restrictions on 
admission to membership therein and, collectively, are truly repre- 
sentative of the Millinery Industry; and that 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or oppress small enterprises, and will not oper- 
ate to discriminate against them, and will tend to effectuate the 
policy of Title I of the National Industrial KecoA^ery Act. 

It is recommended, therefore, that this Code be immediately 
adopted. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

Article I — Purpose 

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 Millinery Industry, and shall be the 
standard of fair competition for this Industry, and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein includes the manufacture 
of millinery as hereinafter defined, and such related branches or sub- 
divisions as may from time to time be included by the President 
under the provisions of this Code. 

2. The term " millinery " as used herein shall include all ladies' 
and misses' headwear, whether trimmed or untrimmed, except that 
it shall not include so-called " harvest hats." 

3. The term " employee " as used herein includes anyone engaged 
in the industry in any capacity receiving compensation for his serv- 
ices, irrespective of the nature or method of payment of such 
compensation. 

4. The term " employer " as used herein shall include every indi- 
vidual, partnership, association, trust, corporation, or other form 
of enterprise engaged as employer in the manufacture of millinery, 
as hereinabove defined, and shall include all employers who are 
engaged in any other industry or in general retail business to the 
extent that they manufacture millinery as part of their business. 

5. The term " member of the industry " includes anyone engaged 
in the industry either as an employer or on his own behalf. 

6. The terms " President ", "Act ", and "Administrator ", as used 
herein, shall mean, respectively, the President of the United States, 
Title I of the National Industrial Recovery Act, and the Adminis- 
trator of said Act. 

Article III — Hours of Labor 

1. Except as hereinafter provided, no employee shall be permitted 
to work in excess of thirty -seven and one half (37y 2 ) hours in any 
one (1) week nor more than seven and one half (7y 2 ) hours in any 
twenty-four (24) hour period. 

2. Office employees, members of shipping and receiving crews, 
engineers, and firemen shall not be permitted to work in excess of 
forty-five (45) hours in any one week. 

(5) 



3. Except as hereinafter provided, no overtime shall be permit- 
ted, except that during a period of not more than six (6) weeks in 
any one (1) season, overtime may be permitted in any market upon 
the recommendation of the Code Authority and the approval of the 
Administrator, provided that time and one half the normal rate of 
wages shall be paid for such overtime work as the Administrator 
may permit. 

4. There shall be periodical investigations by the Code Authority 
for the purpose of determining the amount of unemployment exist- 
ing in each craft, and should the Code Authority find it beneficial 
for the best interests of the industry to temporarily reduce the num- 
ber of hours in any specific craft, this Code may be modified to 
reduce the hours from thirty -seven and one half (37!/^) to thircy-five 
(35) or less hours per week in that craft with the approval of the 
Administrator after such notice and hearing as he shall prescribe. 

5. The provisions of this Article shall not apply to persons em- 
ployed in executive or supervisory capacities, or to persons employed 
as designers, provided such persons receive not less than thirty 
dollars ($30.00) per week. 

6. The provisions of this Article shall not apply to outside sales- 
men, or to watchmen, or to employees engaged in emergency mainte- 
nance or emergency repair work. 

7. The provisions of this Artcle shall apply to any and all persons 
who engage in any of the operations usually performed by the classes 
of employees set forth in Article IV, Section 3, of this Code, or in 
any other operations required in the manufacture of millinery, even 
though such person may be a member of a partnership or association, 
or an officer, stockholder, or director of the corporation engaged in 
said business ; the provisions of this Article shall not apply, however, 
to an individual owner of an unincorporated business engaged in the 
manufacture of millinery. 

8. Subject to review by the Administrator, the Code Authority 
shall issue apprentice regulations providing for apprentices' wages, 
length of apprenticeship and the percentage of apprentices in each 
particular craft. 

9. Subject to review by the Administrator, the Code Authority may 
designate the hour before which work shall not begin and the hour 
after which work shall not continue, and shall determine in which 
localities such regulations shall apply. 

10. No member of the industry shall knowingly engage any em- 
ployee for any time which, when totaled with that already per- 
formed with another member, or members, of the industry, exceeds 
the maximum permitted herein. 

11. No employee shall be permitted to work in excess of five (5) 
days in any seven (7) day period. 

Article IV — Wages 

1. For the purposes of this Code the United States shall be 
divided into four (4) areas, as follows: 

(a) Area "A" shall include Greater New York and the territory 
within a radius of fifty (50) miles from Columbus Circle, except that 
it shall not include any portion of the State of Connecticut. 



(b) Area " B " shall include the city of Chicago and the territory 
within a radius of one hundred (100) miles of the City Hall of 
Chicago, and shall also include the States of Pennsylvania and 
Connecticut and such portions of the State of New Jersey as are 
not included in Area "A". 

(c) Area " C " shall include the States of Missouri, Kansas, and 
Ohio. 

(d) Area " D " shall include all other portions of Continental 
United States not included in Areas "A", " B ", and " C " as defined 
above. 

2. No employee not provided for by the wage provisions enumer- 
ated in Section 3 of this Article shall be paid at less than the rate of 
fourteen dollars ($14.00) per week of the maximum number of hours 
permitted by this Code for such employee when employed in Areas 
"A" and " B " as defined in this Article, nor less than the rate of 
thirteen dollars ($13.00) per week of the maximum number of hours 
permitted by this Code for such employee when employed in Area3 
" C " and " T> " as defined in this Article. 

3. On and after the effective date, employees engaged in the crafts 
hereinafter set forth shall be paid the following standard rates per 
hour, and for the purpose of establishing these standard rates for the 
various crafts, seventy-five percent (75%) of the total workers 
engaged in each craft must receive not less tlian the amount set forth 
in the following schedule ; but in no case shall any such employee be 
paid less than at the minimum wage rate provided in Section 2 of this 
Article : 





Area A 


Area B 


Area O 


Area D 




$1.19 
1.00 
1.00 
.55 


$0.90 
.75 
.75 

• 47J-2 


$0. SO 
• 67H 
.674 
.45 


$0.70 




.60 


Cutters 


.60 




.45 







4. The Code Authority shall, with the approval of the Adminis- 
trator, issue instructions to the members of the industry regarding 
the classification of employees. 

5. In the event that Section 3 of this Article imposes an undue 
hardship on any employer, such employer may petition through the 
trade association of which he ma} r be a member, or directly, to the 
Administrator for relief. The Administrator, upon receipt of such 
petition, shall conduct hearings thereon, and in the event that the 
petitioner establish a case of undue hardship, the Administrator may 
make such modifications of this Code as may be necessary. 

6. No employee shall be paid at less than the rates of pay set forth 
in this Article, regardless of whether such employee is compensated 
on a time-rate, piece-rate, or other basis of compensation. 

7. The weekly compensation for employment now in excess of the 
minimum wages herein provided shall not be reduced, notwithstand- 
ing that the hours of work in any such employment may be hereby 
reduced, and piece rates shall be so adjusted that earnings at the 
shorter hours provided in this Code shall be at least equivalent to 



8 

those obtaining under the longer hours heretofore prevailing, pro- 
vided that this clause shall not cause an advance of any wage rate 
of more than twenty-five (25%) percent over the wage rate as of 
July 1, 1933. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be emploj^ed in 
the industry. In any State an 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 collec- 
tively 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. 

3. No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to re- 
frain 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, this Code shall not supersede any laws of 
such State imposing more stringent requirements on employers regu- 
lating the age of employees, wages, hours of work, or health, fire, 
or general working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the Act 
or of this Code, nor shall they use any subterfuge to frustrate the 
spirit and intent of this Code. 

7. Each employer shall post in a conspicuous place copies of 
Articles III, IV, and V of this Code. 

8. No member of the industry shall permit work to be done in any 
homes or tenement houses, nor in any basement, unsanitary building, 
building unsafe on account of fire risks, or otherwise dangerou,s or 
detrimental to health. 

9. Each employer shall file with the Code Authority proof satis- 
factory to said Authority of compliance with all labor laws and 
regulations, health and sanitation laws and regulations, fire laws and 
regulations, and other similar laws and regulations relating to the 
operation of manufacturing^ establishments; provided, however, that 
the determination by the Code Authority as to whether the proof 
submitted to it is satisfactory as aforesaid shall be subject to review 
by the Administrator. 

Article VI — Administration 

1. A Code x\uthority is hereby constituted to cooperate with the 
Administrator in the administration of this Code. 

2. The Code Authority shall consist of eighteen (18) members 
or such other number as may be approved from time to time by the 



Administrator, and shall be selected, subject to the approval of the 
Administrator, from such groups and in such numbers as hereinafter 
set forth : 

(a) Two (2) members shall be appointed by the Midwestern 
Millinery Association, Inc. 

(b) One (1) member shall be appointed by the Associated Milli- 
nery Industries of St. Louis (Mo.), Inc. 

(e) One (1) member shall be appointed by the New England 
Millinery Manufacturers and Jobbers Association. 

(d) Four (4) members shall be appointed by the Women's Head- 
wear Group, Inc. 

(e) Four (4) members shall be appointed jointly by the Eastern 
Millinery Association, Inc., and the National Association of Ladies' 
Hatters, Inc. 

(f) One (1) member shall be appointed by the Pacific Coast 
Millinery Association. 

(g) One (1) member shall be appointed by the Philadelphia 
Millinery Manufacturers Association. 

(h) One (1) member shall be appointed by the Millinery Manu- 
facturers of Atlanta, Georgia. 

(i) One (1) member shall be appointed by the Cleveland Hat 
Manufacturers Group. 

(j) Two (2) members representing organizations of labor shall 
be appointed by the Administrator on the nomination of the Labor 
Advisory Board of the National Recovery Administration. 

(k) One (1) member may, in the discretion of the Administrator, 
be appointed or selected by such other group or interest as the 
Administrator may designate. 

(1) In addition to the foregoing members, the Administrator may 
appoint not more than three (3) members, with or without vote, as 
he shall determine. Such members and the Administrator shall be 
given notice of and may participate in all meetings of the Code 
Authority. 

3. Each of the foregoing associations shall file with the Adminis- 
trator the names of such members as it shall appoint to the Code 
Authority and shall inform the Administrator immediately of any 
new appointment which it may at any time make. 

4. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall : 
(1) Impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
bylaws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

5. In order that the Code Authority 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 hear- 
ings as he may deem proper, and may require an appropriate modi- 
fication in the method of selection of the Code Authority. 

0. Nothing contained in this Code shall constitute the members of 
the Code Authority partners for any purpose. Nor shall any mem- 
ber of the Code Authority be liable in any manner to any one for 
any act of any other member, officer, agent, or employee of the Code 



10 

Authority. Nor shall any member of the Code Authority 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. 

7. The Code Authority shall have the following duties and powers 
to the extent permitted by this Act, subject to the right of the Ad- 
ministrator, on review, to disapprove or modify any action taken 
by the Code Authority. 

(a) To select officers and agents and to assign to them such duties 
as it may consider advisable, to provide rules for its procedure and 
continuance as the administrative agency of this Code, in accordance 
with the provisions of the Act, and to submit to the Administrator 
true copies of its bylaws and regulations and any amendments when 
made thereto, and minutes of meetings, together with such other 
information as to its activities as the Administrator may deem neces- 
sary to effect the purposes of the Act. 

(b) To obtain reports through a confidential agent from members 
of the industry, not more often than semimonthly, with respect 
to wages and hours of labor, conditions of employment, number of 
employees, and other matters pertaining to the administration and 
enforcement of this Code in such form and at such times as the Code 
Authority with the approval of the Administrator may require, and 
to submit such reports or parts thereof to the Administrator as he 
may require in order that the President may be kept informed as to 
the observances of this Code. All reports received by such agency 
shall be kept secret and confidential except that they shall be avail- 
able to the Administrator. Such agency, after analyzing such 
reports, may disclose without individual identification, only general 
findings based thereon to the Code Authority and to any trade asso- 
ciation approved by the Code Authority for distribution to persons 
entitled thereto. 

(c) To recommend provisions for uniform cost and/or accounting 
systems for each Division of the industry which, upon approval by 
the Administrator and after such notice and hearing as he shall 
prescribe shall become a part of this Code. Any member of the 
industry shall have the privilege of continuing any cost and/or 
accounting system now in use or of instituting a new cost and/or 
accounting system suitable and adapted to his particular needs, pro- 
vided that the selling price arrived at by the use of any such system 
shall not be less than the cost of that particular article which would 
be arrived at by the use of the uniform cost system recommended 
by the Code Authority, and approved bjr the President. 

(d) To prepare and recommend a uniform sales contract or order 
blank for the use of persons to whom this Code is applicable. 

(e) To initiate, consider, and recommend to the Administrator 
proposals for modifications or amendments to this Code. Upon the 
approval of the President, after such hearing as he may prescribe, 
such proposals shall be incorporated into this Code and have the 
same force and effect as if originally made a part hereof. 

(f) To undertake an immediate and complete investigation, in 
cooperation with other Code Authorities in related industries, of 
style piracy and to recommend to the Administrator, as promptly as 
possible, appropriate means for the regulation and control of style 



11 

piracy, which recommendations, upon the approval of the Adminis- 
trator after such notice and hearing as he shall prescribe, shall 
become effective provisions of this Code. 

(g) To coordinate the Administration of this Code with such 
other codes, if any, as may be related to any division or subdivision 
of this industry, with a view to promoting joint and harmonious 
action on matters of common interest, and in particular, but without 
limitation, to make recommendations to the Administrator on ques- 
tions of overlapping jurisdictions. 

(h) To employ such trade associations and other agencies as it 
deems proper, to assist it in carrying out any of its activities, pro- 
vided that such trade associations and other agencies comply with 
the provisions of this Code, and to pay the expenses incident thereto. 
Nothing herein shall in any way relieve the Code Authority of any 
of its responsibilities under this Code. 

8. Any person affected by an action taken by the Code Authority 
shall have the right to appeal to the Administrator. 

9. In addition to the information required to be submitted to 
the Code Authority, there shall be furnished to government agencies 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. 

10. The Administration of this Code, so far as it affects such 
establishments operating under the Retail Code as are commonly 
known as department stores or specialty stores, whose millinery de- 
partments are but one of numerous departments of such establish- 
ments, and the volume of business of whose millinery departments 
constitutes not more than ten percent (10%) of the volume of busi- 
ness of the entire establishment shall be vested in the Retail Code 
Authority. Said Retail Code Authority shall be responsible for 
the Administration of this Code as herein provided to the Adminis- 
trator in charge of the Code of Fair Competition for the Millinery 
Industry. Nothing herein contained shall be construed as relieving 
the millinery department of any department or specialty store from 
the provisions of this Code. 

Article VII — N.R.A. Label 

1. All millinery manufactured subject to the provisions of this 
Code shall bear an NRA label or an authorized substitute therefor 
to symbolize to purchasers of said millinery the conditions under 
which said millinery has been manufactured. 

2. Under the powers vested in the Administrator by Executive 
Order of October 14, 1933, and under grant of the necessary authority 
by him, the Code Authority shall have the exclusive right in this 
industry to issue and furnish said labels to the members thereof. 

3. Each label shall bear a registration number especially assigned 
to each member of the industry by the Code Authority, and shall 
remain attached to all such millinery when sold to the retail dis- 
tributor. 

4. Any and all members of the industry may apply to the Code 
Authority for a permit to use such NRA label, which permit to use 
the label shall be granted to them, but only if and so long as they 
comply with this Code. 



12 

5. Subject to the approval of the Administrator, the Code Au- 
thority shall establish rules and regulations and appropriate ma- 
chinery for the issuance of labels and the inspection, examination 
and supervision of the practices of members of the industry using 
such labels for the purposes of ascertaining the right of such mem- 
bers of the industry to the continued use of said labels; of protecting 
purchasers in relying on said labels; and of insuring to each indi- 
vidual member of the industry that the symbolism of said label will 
be maintained by virtue of compliance with the provisions of this 
Code by all other members of the industry using said label. 

6. The charge made for such labels by the Code Authority shall 
at all times be subject to supervision and orders of the Administra- 
tor and shall be not more than an amount necessary to cover the 
actual reasonable cost thereof, including actual printing, distribu- 
tion, administration, and supervision of the use thereof as herein- 
above, set forth. 

Article VIII — Trade Practices 

1. Inaccurate Advertising. — No member of the industry shall pub- 
lish advertising (whether printed, radio, display, or of any other na- 
ture), which is misleading or inaccurate in any material particular, 
nor shall any member, in any way, misrepresent any goods (includ- 
ing but without limitation its use, trade mark, grade, quality, quan- 
tity, origin, size, substance, character, nature, finish, material, con- 
tent, or preparation) or credit terms, values, policies, services, or the 
nature or form of the business conducted. 

2. False Billing. — No member of the industry shall knowingly 
withhold from or insert in any quotation or invoice any statement 
that makes it inaccurate in any material particular. 

3. Inaccurate Labeling. — No member of the industry shall brand 
or mark or pack any goods in any manner which is intended to or 
does deceive or mislead purchasers with respect to the brand, grade, 
quality, quantity, origin, size, substance, character, nature, finish, 
material content, or preparation of such goods. 

4. Inaccurate references to Competitors, etc. — No member of the 
industry shall publish advertising which refers inaccurately in any 
material particular to any competitors or their goods, prices, values, 
credit terms, policies, or services. 

5. Threats of Lam Suits. — No member of the industry shall publish 
or circulate unjustified or unwarranted threats of legal proceedings 
which tend to or have the effect of harassing competitors or intimi- 
dating their customers. Failure to prosecute in due course shall be 
evidence that any such threat is unwarranted or unjustified. 

6. Secret Rebates. — No member of the industry shall secretly di- 
rectly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount, or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the indus- 
try secretly offer or extend to any customer any special service or 
privilege not extended to all customers of the same class, for the 
purpose of influencing a sale. 

7. Selling on Consignment. — No member of the industry shall ship 
goods on consignment except under circumstances to be defined by the 
Code Authority and approved by the Administrator. 



13 

8. Bribing Employees. — No member of the industry shall give, per- 
mit to be given, or directly offer 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 repre- 
sented party, without the knowledge of such employer, principal, or 
party. 

0. Interference with Another's Contracts. — No member of the 
industry shall attempt to induce the breach of an existing contract 
between a competitor and his employee or customer or source of 
supply; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services. 

10. Return of Merchandise. — No member of the industry shall 
accept for credit the return of merchandise from a purchaser, unless 
such merchandise is not in accordance with the purchaser's specifica- 
tions and in accordance with the order placed ; if merchandise is not 
in accordance with the purchaser's specifications or is not in accord- 
ance with the order placed, then and in such event such merchandise 
may be returned not later than five (5) days after the receipt thereof. 
Under no circumstances shall the return of merchandise be accepted 
by a member of the industry if retained by the purchaser for more 
than five (5) days after the receipt thereof. 

11. Assignments. — No member of the industry shall hereafter take 
or receive directly or indirectly from any customers, either before 
or after the delivery of merchandise, an assignment of accounts 
receivable, or security in any form whatsoever for payment of the 
purchase price of merchandise without first notifying the Code 
Authority that such assignment or security is about to be received. 

12. Terms and Discounts. — The Code Authority shall have power 
to recommend to the Administrator provisions concerning uniform 
terms and discounts, which recommendations, upon the approA T al of 
the Administrator, shall become effective as part of this Code. 

13. F.O.B. Shipments. — The Code Authority shall have power to 
recommend to the Administrator provisions concerning F.O.B. 
shipments, which provisions shall, upon the approval of the Admin- 
istrator, become effective as part of this Code. 

14. Allowance for Advertising. — The Code Authority shall have 
power to recommend to the Administrator provisions concerning 
allowances or discounts for advertising or payment for space in news- 
papers, magazines, guides, or directories on behalf of retailers to 
be used in promoting the sale of merchandise to the consumer, 
Avhich recommendations shall, upon the approval of the Admin- 
istrator, become effective as part of this Code. 

15. Other Unfair Practices. — Nothing in this Code shall limit 
the effect of any adjudication by the Courts or holding by the Fed- 
eral Trade Commission on complaint, finding, and order, that any 
practice or method is unfair, providing that such adjudication or 
holding is not inconsistent with any provision of the Act or of 
this Code. 

Article IX — Modification 

1. This Code and all the provisions hereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the National Industrial Recovery 



UNIVERSITY OF FLORIDA 

llllllllllllllllllllllllllllllllllillllllllllllll 

3 1262 08486 8230 



14 



Act, from time to time to cancel or modify any order, approval, 
license, rule, or regulation issued under title I of said Act and 
specifically, but without limitation, to the right of the President to 
cancel or modify his approval of this Code or any conditions imposed 
by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification 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 President, except as otherwise provided herein. 

Article X — Monopolies 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article XI 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 
increases should be delayed and that, when made, the same should, 
so far as reasonably possible, be limited to actual increases in the 
seller's costs. 

Article XII 

Effective Date. — This Code shall become effective on the second 
Monday following its approval by the President of the United States. 

Approved Code No. 151. 
Registry No. 228-03. 

o