Approved Code No. 201 — Supplement No. 10 Registry No. 1624—3—01 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FURRIERS SUPPLIES TRADE (A Division of the Wholesaling or Distributing Trade) AS APPROVED ON JUNE 2, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Oflace, 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. : ISCl Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex. : Cliamber of Commerce Building. 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Approved Code No. 201 — Supplement No. 10 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FURRIERS SUPPLIES TRADE As Approved on June 2, 1934 ORDER Approving Supplementary Code of Fair Competition for the Furriers Supplies Trade A division of the avholesaling or distributing trade 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 the approval of a Supple- mental Code of Fair Competition for the Furriers Supplies Trade to the Code of Fair Competition for the Wholesaling or Distributing Trade, 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 : NO\^^ 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 Presi- dent, 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 Supplemental Code complies in all re- spects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Sup- jDlemental Code of Fair Competition be and it is hereby approved. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : H. O. King, Division Administrator. Washington, />.C., June 2, 193 Jf. 64641° G57-20- 34 (1) KEPORT TO THE PRESIDENT The President, The White House. Sir: This is a report of the Hearing on the Supplemental Code of Fair Competition of the Furriers Supplies Trade, conducted in Room 125 of the Willard Hotel on April 23, 1934. The Supple- mental Code, which is attached, was presented by a duly qualified and authorized representative of the Trade, complying with the statutory requirements. THE TRADE According to statistics furnished by members of the Furriers Sup- plies Trade, it is estimated that there are approximately 60 estab- lishments with aggregate annual sales of between $4,000,000, and $5,000,000. The Trade employs about 500 persons. HOURS AND WAGES The Supplemental labor provisions establish a maximum forty (40) hour work week and a minimum wage of $15.00 per week. OTHER PROVISIONS OF THE CX)DE The provisions containing supplemental definitions are consid- ered inclusive and accurate. The supplement to the Administrative provisions of the General Code establishes a Divisional Code Authority which is fairly and adequately representative of all the different elements in the Trade. The Trade Practice supplemental provisions are not considered in any way objectionable. FINDINGS The Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter ; I find that — • (a) Said Supplementol Code is well designed to promote the pol- icies 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 organi- zation of trade for the purpose of cooperative action among trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible use of the present productive capacity of industries, by (2) avoiding undue restriction of production (except as may be tem- porarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by re- ducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Trade normally employs not more than 50,000 employees and it is not classified by me as a major industry. (c) The Supplemental 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 api:)licant association is a trade association truly representative of the aforesaid Trade ; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not per- mit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not eliminate or oppress small 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 the approval of this Supplemental Code. For these reasons, the Supplemental Code has been approved. Respectfully, Htjgh S. Johnson, Administrator, June 2, 1934. THE FURRIEKS SUPPLIES TRADE SUPPLEMENTARY CODE OF FAIR COMPETITION FOR A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act^ this Supplemental Code is established as a Code of Fair Conrpetition for the Furriers Supplies Trade, pursuant to Article VI, Section 1 (c) of the Code of Fair Competition for the Wholesaling or Distributing Trade, approved by the President of the United States on Januaiy 12, 1934. All Provisions of the said General Code which are not in conflict with the provisions of this Supplemental Code are hereby specifically incorporated by reference in this Supplemental Code and made part hereof. Such provisions of the General Code together with the provisions of this Supple- mental Code are the standards of fair competition for, and are binding upon every member of, the said Furriers Supplies Trade. Article II — Definitions supplementing ARTICLE II OF THE GENER^iL CODE The term " furrier supplier " or " distributor ", as used herein, is defined to mean any individual, partnership, corporation, associa- tion, or form of enteri^rise, or a definitely organized division thereof, engaged in the business of wholesaling or distributing furriers sup- plies to furriers whether or not the said concern maintains a stock of merchandise at his or its place of business, and which concern through salesmen, advertising and/or other sales promotion devices sells principally to manufacturing wholesale and/or manufacturing retail furriers and/or to institutional, commercial and/or industrial users, but which does not sell in significant amounts to ultimate consumers. The term "the Trade " is defined to mean the business in which the furrier supplier or distributor, as above defined, engages. The term '' manufacturing wholesale furrier " as used herein is defined to mean any person, firm, or corporation engaged in the busi- ness of manufacturing, repairing, remodeling, lining, and/or selling primarily for resale fur coats, fur scarfs, fur trimmings, and kindred articles made from furs and skins. The term " manufacturing retail furrier " as used herein, is de- fined to mean any person, firm or corporation engaged in the busi- ness of manufacturing, repairing, remodeling, lining, and/or selling to the ultimate consumer fur coats, fur scarfs, fur trimmings, and kindred articles made from furs and skins. (4) The term " Divisional Code Authority " as used herein is defined to mean the Divisional Code Authority for the Furriers Supplies Trade, a division of the Wholesaling or Distributing Trade. The term " General Code " as used herein is defined to mean the Code of Fair Competition for the \¥holesaling or Distributing Trade. Article III — Houes SUPPLEMENTING ARTICLE III OF THE GENERAL CODE Section 1. Maximum Hours. — (Superseding Article III, Section 1 (a), (b), (c), (d) and (e) of the General Code.) (a) No employee shall be permitted to work more than forty (40) hours in any one week nor more than five (5) full days in any one week, nor more than eight (8) hours in any one day. (b) In case of necessity any employee may be permitted to work in excess of the above specified maximum daily and weekly hours provided that one and one-half times his normal rate per hour shall be paid for each hour of overtime so worked; but in no case shall any employee work in excess of 44 hours in any one week. (c) The provisions of this Article shall not apply to persons em- ployed in a managerial, executive or administrative capacity who earn $35 per week or more. Article . IV — Wages supplementing article IV or the general code Section 1. Minimwin Bates of Pay. — (Superseding Article IV, Section 1 (a), (b), (c), (d), (e) and (g) of the General Code.) The minimum rates of pay shall be as follows : (a) No employee shall be paid less than $15 per week or 37^0 per hour except as herein otherwise provided. (b) Wlien any employee shall work for one-half or less the maxi- mum hours prescribed for his class of employment, he shall be paid at the rate of time and one-half. (c) Wages shall be paid in lawful money or by negotiable check at least once a week. Seciton 2. (Superseding Article IV, Section 2 of the General Code). No employee whose normal full-time weekly hours as of July 1, 1933, are reduced by less than 20% shall have his or her full- time earnings as of July 1, 1933 reduced. No employee whose nor- mal full-time weekly hours as of July 1, 1933 are reduced 20% or more shall have his or her full-time weekly earnings as of July 1. 1933 reduced by more than 10%. The benefits of this clause shall accrue and be equally applicable to employees hired subsequent to July 1, 1933. Artictb V — General Labor Provisions supplementing article V OF THE GENERAL CODE Section 1. Employers shall not change the method of compensa- tion or reclassify employees, or duties of occupations performed by employees, or discharge employees to reemploy them at lower rates, or engage in an}?- subterfuge so as to defeat the purposes of the Act, or the provisions of this Supplemental Code. Section 2. No employee shall be dismissed by reason of making a complaint or giving evidence with respect to an alleged violation of this Supplemental Code. Section 3. Every employee shall receive a vacation with full pay two (2) weeks out of every fifty-two (52) weeks' period with the following exception : (a) Errand boj's shall be given one week's vacation out of every fiftj'-two (52) weelcs' period with two weeks' pay. Section 4. No employee who has been regularly employed in the same establishment for one year shall be discharged without two weeks' notice; and no employee who has been employed in the same establishment for two (2) years or more shall be discharged without one month's notice. Section 5. Each employer shall post in conspicuous places, acces- sible to employees, copies of Articles I to V, inclusive, of this Sup- plemental Code, and of Articles III to V, inclusive, of the General Code. Article VI — Administration supplementing article VI OF the general code Section 1. (a) To provide an effective procedure for the admin- istration of this Supplemental Code and to cooperate with the Ad- ministrator in the administration of this Supplemental Code, a Divisional Code Authority is hereby established. (b) The Divisional Code Authority shall consist of nine (9) members, balloted for as provided for in Sub-section (d) of this Section, or ten (10) members if the Administrator shall so desire, to be selected in the following manner : Five (5) members shall be elected by members of the Furriers Supply Merchants Association, Inc., in New York State. Two (2) members shall be elected b}- furriers suppliers or dis- tributors in the States of Illinois, Wisconsin, Indiana, Michigan and Minnesota. One (1) member shall be elected by furriers suppliers or dis- tributors in the States of California, Oregon, Washing'ton and Colorado. One (1) member shall be elected hj furriers suppliers or dis- tributors 111 the States of the United States other than those above numerated. The Administrator may, if he deem it advisable, appoint the tenth member of the Divisional Code Authority. (c) The Divisional Code Authority shall from its membership elect one member to represent the Trade on the General Code Authority. (d) The Board of Directors of the Association shall appoint a Nominating Committee consisting of five members representative of the Trade. This nominating committee shall within 3 days after the approval of this Supplemental Code, prepare separate ballots for tlie different territorial divisions specified in Sub-section (b) of this Section, each ballot to contain the names of the appropriate number of nominees for a place on the Divisional Code Authority, i.e., five (5) from New York, two (2) from the States of Illinois, Wisconsin, Indiana, Michigan and Minnesota, one from the States of California, Washington and Colorado, and one from States other than above numerated. The ballots shall contain in addition to the names of the nominees, blank lines for the inclusion of the same number of additional names which may be filled in by any member of the Trade voting for the Divisional Code Authority. Siich bal- lots shall be mailed to each member of the Furriers Supply Mer- chants Association, Inc., and such other members of the Trade who* can be ascertained after diligent search. Such ballots in order to be counted must be postmarked not more than ten days after being mailed by the Nominating Committee, and must be accompanied by a certificate of compliance and assent to the terms of this Sup- plemental Code and the General Code. The ballots shall be pub- licly opened and the votes tabulated by the Nominating Committee, and the nine (9) names receiving a plurality vote shall be declared members of the Divisional Code Authority. Section 2. Subject to such rules and regulations as may be issued by the Administrator, the Divisional Code Authority shall have the following powers and duties in addition to those authorized in the General Code and in addition to those authorized by other provisions of this Supplemental Code: (a) To appoint a Trade Practice Committee who shall meet with the Trade Practice Committees appointed under such other codes as may be related to the Trade, except other Supplemental Codes to the General Code, for the purpose of formulating Fair Trade Prac- tices to govern the relationships between production and distribu- tion employers under this Supplemental Code and under such others, to the end that such Fair Trade Practices may be proposed to the Administrator as an amendment to the Supplemental Code and such other Codes. (b) To appoint a Regional Committee in each of such regions as the Divisional Code Authority may establish, to assist the Divisional Code Authority in administering the Supplemental Code ; provided, however, that nothing herein shall relieve the Divisional Code Au- thority of its responsibilities as such. (c) To organize, elect officers, hire employees, and perform such other acts as may be necessary for the proper administration of the Supplemental Code. (d) To establish an agency on planning. (e) To cooperate with the Administrator in regulating the use of any National Recovery Administration Code Insignia solely by those members of the Trade who have assented to and are complying with this Supplemental Code. ^f) To adopt By-laws, Rules and Regulations for its procedure. (g) To from time to time suggest modifications of and/or amend- ments to this Supplemental Code and to assent to such modifications and/or amendments, and to the Supplemental Code in its final form as modified and/or amended. Section 3. Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authority partners 8 for any purpose, nor shall any member or members of the Divisional Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or emploj'ee of the Divisional Code Au- thority. Nor shall any member of the Divisional Code Authority exercising reasonable diligence in the conduct of his duties here- under, be liable to anyone for any act or omission to act, under this Supplemental Code, except for his own wilful misfeasance or non-feasance. Section 4. If the Administrator shall determine that any action of the Divisional Code Authority or any agency thereof, may be unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and for further con- sideration by such Divisional Code Authority or agency, pending final action, which shall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with such action in its original or modified form. Section 5. It being found necessary, in order to support the administration of this Supplemental Code and to maintain the standards of fair competition established by this Supplemen- tal Code and to effectuate the policy of the Act, the Divisional Code Authority is authorized, subject to the approval of the Administrator : (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Supplemental Code; (b) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem necessary, (1) an itemized budget of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the Trade ; (c) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and secure equitable contribution as above set forth by all such members of the Trade, and to that end, if necessary, to institute legal proceedings therefor in its own name. (d) Only members of the Trade complying with the Supple- mental Code and the General Code and contributing to the expense of its administration as provided in Section 1 hereof shall be en- titled to participate in the selection of the members of the Divisional Code Authority or to receive the benefit of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. (e) After the approval of the Administrator of the itemized budget of estimated expenses and an equitable basis of contribution, non-payment by any member of the Trade of an assessment levied by the Divisional Code Authority as an equitable share of the cost of Code administration shall constitute a violation of this Supplemental Code. Section 6. (a) There shall be established an Industrial Relations Committee for the Furrier Supplies Trade, to be constituted of seven (7) persons to be selected as follows : (1) An impartial chairman to be appointed by the Administra- tor in the event the rest of the Committee fail to select one by agreement. (2) Three (3) representatives of employers to be appointed by the Divisional Code Authority for the Furriers Supplies Trade. (3) Three (3) representatives of employees to be appointed by a truJy representative labor organization, if such exists, or representa- tives nominated by the Labor Advisory Board of the National Re- covery Administration, and appointed by the Administrator. (b) The Industrial Relations Committee shall have the following powers and duties: (1) To adopt the By-laws and Regulations for the procedure of such Committee. (2) To mediate and conciliate in respect of any disputes arising between employers and employees. (3) To hear and assist in adjusting any complaints arising from any of the labor provisions of this Code. (4) To offer their services as arbitrators, or their assistance in securing arbitrators in any disputes or complaints arising between employers and employees, provided such dispute is voluntarily sub- mitted to their arbitration by both such parties. (5) To assist in promoting cooperation between employers and employees in this Trade. Article VII — Trade Practices SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE Section 1. Every member of the Furriers Supplies Trade shall record and keep a full and complete record of all transactions. Section 2. (a) The maximum credit terms of sale to manufac- turing wholesale furriers shall be as follows : 5%, ten days end of month (5/10 e.o.m.) or 2% ten days end of month, sixty days extra (2/10 e.o.m. 60 days extra), or net, end of month, ninety days extra (net, e.o.m. 90 days extra). (b) The maximum credit terms of sale to manufacturing retail furriers shall he as follows: All sales from March 1 to August 31 may be made either at 3%, ten days end of month (3/10 e.o.m.) or net October 1; all sales from September 1 to February 28 shall be made at either 3% ten days end of month, or 2%, ten days end of month, sixty days extra (2/10 e.o.m., 60 days extra). (c) The maximum rate of anticipation shall be 6% per annum, or the legal rate governing the contract, whichever is lower. (d) Fictitious prices making possible greater cash discounts then above provided for are prohibited. Section 3. No member of the Trade shall accept from purchasers the return of any Furriers Supplies where the merchandise has been in the possession of the purchaser for more than five (5) business days, except that nothing herein contained shall relieve any member of the Trade from the usual obligations of warranty as to quality, manufacturers' defects or materials. Section 4. The Divisional Code Authority, subject to the approval of the Administrator shall cause to be formulated, an accounting 10 system and methods of cost finding and/or estimating, capable of use by the members of the Trade. After such system and methods have been formulated, full details concerning them shall be made available to all members. Thereafter, all members shall determine and/or estimate costs in accordance with the principles of such methods. Section 5. It shall be an unfair trade practice to sell or offer for sale any product at a price less than that established by the cost finding and/or estimating system provided by Section 4, provided, however, that any member of the Trade may sell at a price as low as that set by any competitor who sells at or above his own cost on products which are similar; and, provided, further, that obsolete merchandise or merchandise for complete final distressed liquidation may be disposed of below cost if at least five days' advance notice of such intended disposal be given the Divisional Code Authority. Section 6. It shall be an unfair trade practice for any member of the Trade to employ subterfuge directly or indirectly to avoid or attempt to avoid the provisions of this Supplemental Code or the purposes or intent of the National Industrial Recovery Act, which are to increase employment, provide better wages, promote fair competitive methods, and to promote the public welfare. Article VIII — Modification This Supplemental Code and all the provisions thereof are ex- pressly made subject to the ri^ht of the President in accordance with the provisions of the Sub-section (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under Title I of said Act. Article IX — Eftective Date This Supplemental Code shall become effective on the tenth day after its approval. Approved Code No. 201 — Supplement No. 10, Registry No. lG2Jr-3-01. o 1 UNIVERSITY OF FLORIDA 3 1262 08728 5705