UNIVERSITY OF FLORIDA 
 
 3 1262 08486 7711 
 
 Registry No. 231—11 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 PROPOSED CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 WHOLESALE MACHINE-MADE LACE 
 AND EMBROIDERY INDUSTRY 
 
 AS SUBMITTED ON SEPTEMBER 1, 1933 
 
 WE DO OUR PART 
 
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 U.S. DEPr-^<T08?v 
 
 The Code for the Wholesale Machine-Made Lace and Embroidery Industry 
 
 in its present form merely reflects the proposal of the above-mentioned 
 
 industry, and none of the provisions contained therein are 
 
 to be regarded as having received the approval of 
 
 the National Recovery Administration 
 
 as applying to this industry 
 
 UNITED STATES 
 
 GOVERNMENT PRINTING OFFICE 
 
 WASHINGTON : 1933 
 
 For sale by the Superintendent of Documents, Washington, D. C. 
 
 Price 5 cents 
 
Submitted by 
 
 EMBROIDERY MERCHANTS ASSOCIATION, INC. 
 
 (ID 
 
APPLICATION TO THE PRESIDENT OF THE UNITED 
 STATES FOR APPROVAL OF A CODE OF FAIR COMPETI- 
 TION FOR THE MERCHANTS ENGAGED IN THE WHOLE- 
 SALING OF MACHINE-MADE LACES AND EMBROIDERIES 
 
 UNDER THE PROVISIONS OF SECTION 3 OF TITLE I OF THE 
 STATUTE ENTITLED "AN ACT TO ENCOURAGE NATIONAL 
 INDUSTRIAL RECOVERY, TO FOSTER FAIR COMPETITION, AND 
 TO PROVIDE FOR THE CONSTRUCTION OF CERTAIN USEFUL 
 PUBLIC WORKS, AND FOR OTHER PURPOSES" 
 
 1. Definitions. — The term "Lace and Embroidery Merchants" as 
 used herein, is defined to mean those engaged in the wholesale dis- 
 tribution of the products of the Levers, Go-through, Mechlin, Bob- 
 binet, Barmen Circular, Pusher, Schifili, and other embroidery 
 machines, other than manufacturers. 
 
 2. This application is made by the Embroidery Merchants Asso- 
 ciation, Inc., represented by a committee of its Board of Directors 
 consisting of Lewis H. Hollander of L. H. Hollander & Company 
 of New York City ; H. Albert Philips of the American Fabrics Com- 
 pany of Bridgeport, Conn. ; Herbert Lehmann of J. & H. Lehmann, 
 Inc., of New York City; Nat Rann of Wasserman & Rann, Inc., of 
 New York City ; Kurt Lehman of Lido Embroidery Company of 
 New York City; Edwin Lichtig of Edwin Lichtig, Inc., of New 
 York City; and Clement J. DriscoU, Executive Director of the Em- 
 broidery Merchants Association, Inc. This Association represents 
 approximately 75% of the wholesale distribution of domestic em- 
 broideries. The Association has imposed no inequitable restrictions 
 on admission to its membership and believe it is truly representative 
 of the Embroidery Merchants of the United States. 
 
 3. The Embroidery Merchants Association, Inc., has been in exist- 
 ence for more than a year, and is the only Association representing 
 the wholesalers of domestic laces and embroideries exclusive of 
 manufacturers. 
 
 4. The Committee of the Board of Directors listed above has been 
 constituted for the purpose of cooperating with the President in 
 effectuating the purposes of the National Industrial Recovery Act 
 by formulating provisions for a code of fair competition for the 
 trade. It has been actively engaged in ascertaining the views of 
 the various units engaged in our trade, and is familiar with and 
 has a wide knowledge of the conditions of the trade. 
 
 5. This committee has received the unqualified authorization of 
 approximately three fourths of the sales volume of the embroidery 
 merchants to act on their behalf with respect to the formulation and 
 adoption of a Code of Fair Competition, under the National Indus- 
 trial Recovery Act. 
 
 6. This application is hereby made under the provisions of Section 
 3 of Title I of the National Industrial Recovery Act for approval by 
 the President of the proposed Code of Fair Competition for the 
 
 9142 — 33 (1) 
 
merchants engaged in wholesaling of machine-made laces and em- 
 broideries, submitted herewith and attached hereto. 
 
 7. To assist in carrying out the provisions and purposes of the 
 National Industrial Recovery Act and rules and regulations made 
 pursuant thereto and the Code of Fair Competition submitted here- 
 Avith and for the formulation of such further code provisions as may 
 be necessary to insure fair competition and to effectuate the provi- 
 sions of the Act, it is requested that the Embroidery Merchants 
 Association, Inc., be constituted as an agency for these purposes. 
 
 Respectfully submitted. 
 
 Embroidery Merchants Association, Inc., 
 By Clement Driscoll, Executive Director. 
 
 Code Committee of Board of Directors : 
 
 Lewis H. Hollander, 
 L. H. Hollander & Co. 
 Herbert Lehmann, 
 J. & H. Lehmann, Inc. 
 Kurt Lehman, 
 Lido Embroidery Co. 
 August 21, 1933. 
 
 H. Albert Philips, 
 American Fabrics Co. 
 Nat Rann, 
 
 Wasserman & Rann, Inc. 
 Edwin Lichtig, 
 Edwin Lichtig, Inc. 
 
 I 
 
COPY OF THE PROPOSED CODE OF FAIR COMPETITION 
 FOR THE MERCHANTS ENGAGED IN THE WHOLESALING 
 OF MACHINE-MADE LACES AND EMBROIDERIES 
 
 To effectuate the policy of Title I of the National Industrial Re- 
 covery Act, during the period of the emergency by reducing and 
 relieving unemployment, improving the standards of labor, elimi- 
 nating competitive practices destructive of the interests of the pub- 
 lic, employees and employers, relieving the disastrous effects of 
 overcapacity, and otherwise rehabilitating the business of selling 
 machine made embroidered fabrics, embroideries, and laces, and by 
 increasing the consumption of industrial and agricultural products 
 by increasing purchasing power, and in other respects, the follow- 
 ing provisions are established as a code of fair competition for 
 the lace and embroidery merchants : 
 
 Definitions. — The term " Lace and Embroidery Merchants " as 
 used herein, is defined to mean those engaged in the wholesale dis- 
 tribution of the products of the Levers-Go-Through, Mechlin, Bob- 
 binet. Barmen Circular, Pusher, Schiffli, and other embroidery 
 machines, other than manufacturers. 
 
 The term " employees " as used herein, shall include all persons 
 employed in the conduct of the wholesale distribution of laces and 
 embroideries. 
 
 The term " employers " shall mean all persons who employ labor 
 in the conduct of the wholesale distribution of laces and embroideries. 
 
 The term " effective date " as used herein is defined to be the 
 second Monday after the approval by the President of the United 
 States, of this Code, or any part thereof or addition thereto. 
 
 The term " persons " shall include natural persons, partnerships, 
 associations, trusts, including trustees in bankruptcy and receivers 
 and corporations. 
 
 II 
 
 On and after the effective date, the minimum wage that shall be 
 paid by employers in the wholesale distribution of laces and em- 
 broideries to any of their employees shall be at the rate of $13,00 
 per week for forty hours of labor. 
 
 Ill 
 
 On and after the effective date employers in the wholesale distri- 
 bution of laces and embroideries shall operate on a schedule of forty 
 hours of labor for all employees with the exception of the executive 
 
 (3) 
 
heads of various departments who earn more than $30.00 per week,, 
 and all salesmen. 
 
 On and after the effective date employers in the wholesale distri- 
 bution of laces and embroideries shall not employ any minor under 
 the age of sixteen years. 
 
 IV 
 
 With a view to keeping the President informed as to the observance 
 or nonobservance of this Code of Fair Competition, and as to whether 
 the lace and embroidery merchants are taking appropriate steps to 
 effectuate the declared policy of the National Industrial Recovery 
 Act, each person engaged in the wholesale distribution of laces and 
 embroideries agrees to furnish, duly certified reports in substance as 
 follows and in such form as may hereafter be provided. 
 
 (a) Ileturns for every four (4) weeks, showing for each of the 
 four (4) weeks, immediately preceding, the following: 
 
 1. Maximum hours worked by any employee. 
 
 2. Minimum rate per week paid to any employee. 
 
 (b) Returns every four (4) weeks, showing the total number of 
 employees in each individual concern. 
 
 The Embroidery Merchants Association, Inc., 1457 Broadway, 
 New York City, is constituted the agency to collect and receive such 
 reports, to administer this Code and to collect from each merchant 
 engaged in the wholesale distribution of laces and embroideries the 
 necessary funds to properly administer this Code. 
 
 V 
 
 To further effectuate the policies of the Act, the Embroidery Mer- 
 chants Association, Inc., the applicants herein, or such committee or 
 committees as may hereafter be constituted by the action of the Em- 
 broidery Merchants Association, Inc., is set up to cooperate with the 
 Administrator as a planning and fair practice agency for the whole- 
 sale distribution of laces and embroideries. Such agency may from 
 time to time present to the Administrator recommendations based 
 on conditions in the industry as they may develop from time to time 
 which will tend to effectuate the operation of the provisions of this 
 Code and the policy of the National Industrial Recovery Act, and 
 in particular along the following lines : — 
 
 (a) Recommendations for the regulating of copying of designs of 
 laces and embroideries. 
 
 (b) Recommendations to promote the stabilization of the indus- 
 try to prevent and eliminate unfair and destructive competitive prices 
 and practices. 
 
 (c) Recommendations to the prosecution as violation of the terms 
 and provisions of this Code, misleading, advertising, misbranding, 
 and mislabeling, and false invoicing, same to be deemed as fraudu- 
 lent and deceptive practices. Complaints effecting the above shall 
 be reviewed by an Arbitration Board selected in accordance with 
 the rules and regulations of the American Arbitration Society. 
 
 (d) Recommendations that the Code provide that inducing breach 
 of contracts, espionage, piracy of designs, enticement of employees, 
 imitation of trade names, etc., shall be deemed as to be misappro- 
 
priation of competitors' business and shall be punishable as a viola- 
 tion of this Code. Complaints concerning such cases shall be heard 
 by an Arbitration Board selected in accordance with the rules and 
 regulations of the American Arbitration Society. 
 
 Such recommendations, after hearing and when approved by the 
 President of the United States, shall have the same force and effect 
 as any other provisions of this Code. 
 
 VI 
 
 The same agency is also to cooperate with the Administrator in 
 making investigations as to the functioning and observance of any 
 of the provisions of this Code, at its own instance, or on complaint 
 by any person affected, and to rej)ort the same to the Administrator. 
 
 VII 
 
 The same agency is also prescribed for the purpose of cooperating 
 with the domestic lace ajid manufacturing industry and the do- 
 mestic embroidery manufacturing industrj^ to the end that this Code 
 be made effective and maintained insofar as their respective industry 
 may determine as to the sale and distribution of laces and em- 
 broideries in the United States is concerned. 
 
 The constituted agency is empowered : 
 
 1. To administer the provisions of this Code. 
 
 2. To formulate the rules for the operation of this Code. 
 
 3. To hear complaints against any member charged with the 
 violation of this Code or the National Industrial Recovery Act, and 
 dispose of such complaints as it may see fit. 
 
 4. To institute proceedings against any person or persons for the 
 violation of this Code or the National Industrial Recovery Act. 
 
 5. To make or cause to be made investigations of the business of 
 any person or persons, namely, the books of account, in order to 
 insure the observance of and compliance with the provisions of this 
 Code and the National Industrial Recovery Act. 
 
 6. To recommend to the Administrator the licensing of a person 
 or persons engaged in the wholesale distribution of laces and em- 
 broideries who do not conform to the provisions of this Code. 
 
 7. To obtain such trade statistics and information from persons 
 in the industry as it may deem prudent for the surveys and compile 
 such reports as it may deem proper for the best interests of the 
 industry, 
 
 VIII 
 
 The Embroidery Merchants Association, Inc., shall make no in- 
 equitable requirements for admission and it shall be representative 
 of the lace and embroidery merchants. Any person, partnership, or 
 corporation engaged in the wholesale distribution of laces and em- 
 broideries may become a member of this organization. 
 
 IX 
 
 This Code is not designed to promote monopolies nor shall it be 
 administered so as to eliminate or oppress small enterprises and it 
 will not operate to discriminate against them. 
 
It shall be deemed a violation of this Code to give or permit to be 
 given to any buyer, customer, or individual, directly or indirectly, 
 any allowance, rebate, commission, or refund, in the form of money 
 or otherwise. 
 
 XI 
 
 The established terms of this industry shall include no greater 
 discount than 8 percent, ten days, end of month; or 7 percent, ten 
 days, 60 days extra, on laces, trimmings, and neckwear; and 2 per- 
 cent, ten days, end of month for embroidery work done on customer's 
 material; and 3 percent, ten days, end of month, or 2 percent, ten 
 days, 60 days extra on all other embroidered materials, with no 
 additional dating on any bills. 
 
 These terms of the industr}^ shall include no greater discount 
 other than those mentioned above. It is understood, however, that 
 w^iere payment is made on the basis of ten days, end of month, it 
 shall be permissible to grant dating as of the first of the following 
 month on shipments made on and after the 25th of the month. 
 
 Anticipations of the payment may be allowed at no more than at 
 the rate of 6% per annum. Any deviation or variations from the 
 above established terms of sale, directly or indirectly, shall be 
 deemed a violation of this Code. 
 
 XII 
 
 It shall be deemed a violation of this Code for goods to be billed 
 on memoranda, with the exception of sample pieces to customers, 
 and in the event that such goods not being returned within ten days, 
 they are to be charged as of the date of shipment. 
 
 XIII 
 
 Where the costs of executing contracts entered into with the 
 embroidery merchants prior to the approval of the President of the 
 United States of this Code are increased by the application of the 
 provisions of that Act to the industry, it is equitable and promotive 
 of the purposes of the National Industrial Recovery Act, and appro- 
 priate adjustments of such, contracts to reflect such increased costs 
 be arrived at by arbitral proceedings or otherwise, and the Em- 
 broidery Merchants Association, Inc., is constituted an agency to 
 assist in effectuating such adjustments : 
 
 XIV 
 
 Employers in the wholesale distribution of laces and embroideries 
 shall comply with the requirements of the National Industrial Re- 
 covery Act as follows: "(1) That employees shall have the right to 
 organize and bargain collectively through representatives of their 
 own choosing, and shall be free from the interference, restraint, or 
 coercion of employers of labor, or their agents, in the designation of 
 
such representatives or in self-organization, or in other concerted 
 activities for the purpose of collective bargaining, or other mutual 
 aid of protection ; (2) that no employee and no one seeking employ- 
 ment shall be required as a condition of employment to join any 
 company union or to refrain from joining, organizing, or assisting 
 a labor organization of his own choosing; and (3) that employers 
 shall comply with the maximum hours of labor, minimum rates of 
 pay, and other conditions of employment, approved or prescribed by 
 the President. 
 
 XV 
 
 This Code and all the provisions thereof are expressly made sub- 
 ject to the right of the President, in accordance with the provisions 
 of Clause 10 (b) of the National Industrial Recovery Act, from time 
 to time to cancel or modify any order, approval, license, rule, or 
 regulations, issued under Title I of said Act, and specifically to the 
 right of the President to cancel or modify his approval of this Code 
 or any conditions imposed by him upon his approval thereof. 
 
 XVI 
 
 Such of the provisions of this Code as are not required to be 
 included therein, by the National Industrial Recovery Act, may 
 with the approval of the President, be modified or eliminated as 
 changes in circumstances or experience may indicate. It is con- 
 templated that from time to time supplementary provisions of the 
 President to prevent unfair competition in price and other unfair 
 and destructive competitive practices and to effectuate the other 
 purposes and policies of Title I of the National Industrial Recovery 
 Act consistent with the Provisions thereof. 
 Submitted by: 
 
 Clement J. Driscoll, 
 
 Executive Director. 
 Code Committee: 
 Lewis H. Hollander, H. Albert Philips, 
 
 L. H. Hollander & Co. American Fabrics Co. 
 
 Herbert Lehmann, Nat Rann, 
 
 J. & H. Lehmann, Inc. Wasserman & Rann, Inc. 
 
 Kurt Lehman, Edwin Lichtig, 
 
 Lido Embroidery Co. Edwin Lichtig, Inc. 
 
 Embroidery Merchants Association, Inc., 
 lJfS7 Broadway., New York.^ N.Y. 
 
 o 
 
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