• 
 
 Approved Code No. 201 — Supplement No. 14 
 
 Registry No. 286—02 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 SUPPLEMENTARY 
 CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 WOOLENS AND TRIMMINGS 
 DISTRIBUTING TRADE 
 
 (A Division of the Wholesaling or Distributing Trade) 
 AS APPROVED ON JULY 23, 1934 
 
 WE DO OUR PART 
 
 UNITED STATES 
 
 GOVERNMENT PRINTING OFFICE 
 
 WASHINGTON: 1934 
 
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Approved Code No. 201 — Supplement No. 14 
 SUPPLEMENTARY CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 WOOLENS AND TRIMMINGS DISTRIBUTING 
 
 TRADE 
 
 As Approved on July 23, 1934 
 
 ORDER 
 
 Supplemental Code of Fair Competition for the Woolens and 
 Trimmings Distributing Trade 
 
 a division of the wholesaling 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 approval of a Supple- 
 mental Code of Fair Competition for the Woolens and Trimmings 
 Distributing Trade to the Code of Fair Competition for the Whole- 
 saling or Distributing Trade, and hearings having been duly held 
 thereon and the annexed report on said Supplemental Code, con- 
 taining findings with respect thereto, having been made and directed 
 to trie 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 Supplemental 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 Supplemental Code of Fair Competition be and it is hereby 
 approved ; provided, however, that the provisions of Article IV, 
 Section 3 be and they hereby are stayed pending my further order. 
 
 Hugh S. Johnson, 
 Administrator* for Industrial Recovery. 
 
 Approval recommended : 
 
 Robert L. Houston, 
 
 Division Administrator. 
 
 Washington, D.C., 
 
 July 23, 1034. 
 
 75G20" 829-132 34 (1) 
 
REPORT 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 Woolens and Trimmings Distributing 
 Trade, conducted in the Green Room of the Raleigh Hotel on May 
 8, 1934. The Supplemental Code, which is attached, was presented 
 by duly qualified and authorized representatives of the Trade, com- 
 plying with the statutory requirements. 
 
 THE TRADE 
 
 According to the census of Wholesale Distribution for the year 
 1929, there were 136 establishments distributing tailors' trimmings 
 and supplies, and employing 585 persons with annual net sales of 
 $11,327,000. However, this figure does not include the further break- 
 down by the census of Wholesale Distribution under woolens and 
 worsteds. Under this heading for 1929 there were 327 establish- 
 ments employing 2,548 people with annual net sales of $95,459,000. 
 The figures submitted by the Trade state that there are 225 con- 
 cerns employing 2,500 persons with aggregate annual sales of 
 $40,000,000. It is believed that the Trade's figures represent a fairly 
 true picture of the Trade as could be included under the definition of 
 this Supplemental Code. 
 
 PROVISIONS OF THE CODE 
 
 The provisions containing supplemental definitions are considered 
 inclusive and accurate. 
 
 The Administrative provisions supplementing the General Code 
 establish 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 Sup- 
 plemental Code having found as herein set forth and on the basis of 
 all the proceedings in this matter; 
 
 I find that 
 
 (a) Said Supplemental 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 inter- 
 state 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 
 
 (2) 
 
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 pro- 
 moting the fullest possible use 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 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 
 applicant association is a trade association truly representative of 
 the aforesaid Trade; and that said association imposes no inequi- 
 table restrictions on admission to membership therein. 
 
 (d) The Supplemental Code is not designed to and will not permit 
 monopolies or monopolistic practices. 
 
 (e) The Supplemental Code is not designed to and will not elim- 
 inate or oppress small enterprises and will not operate to discrim- 
 inate against them. 
 
 (/) 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, 
 
 Hugh S. Johnson, 
 
 Administrator. 
 July 23, 1934. 
 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 
 THE WOOLENS AND TRIMMINGS DISTRIBUTING 
 TRADE 
 
 A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE 
 
 Article I — Purposes 
 
 To effectuate the policies of Title I of the National Industrial Re- 
 covery Act, this Supplemental Code is established as a Code of Fair 
 Competition for the Woolens and Trimmings Distributing; Trade 
 pursuant to Article VI, Section 1 (c) of the Code of Fair Competi- 
 tion for the Wholesaling or Distributing Trade, approved by the 
 President of the United States on January 12, 1934. All provisions 
 of the said General Code which are not in conflict with the provisi- 
 sions 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 
 Supplemental Code are the standards of fair competition for and 
 are binding upon every member of said Woolens and Trimmings 
 Distributing Trade. 
 
 Article II — Definitions 
 
 SUPPLEMENTING ARTICLE II OF THE GENERAL CODE 
 
 Section 1. Wholesaler or Distributor. — The term "Wholesaler" 
 or " Distributor " as used herein, shall be defined to mean any in.- 
 dividual, partnership, association, corporation, or other form of 
 enterprise or definitely organized division thereof organized for the 
 specific purpose of rendering a general distribution service, engaged 
 in the selling of Woolens and Trimmings to Merchant Tailors 
 through the use of salesmen, advertising, catalogues, and/or other 
 sales promotion devices. 
 
 Section 2. The Trade. — The term " the Trade " as used herein, 
 shall be defined to mean the business in which Wholesalers or Dis- 
 tributors as above defined, are engaged. 
 
 Section 3. Divisional Code Authority. — The term " Divisional 
 Code Authority ", as used herein, shall be defined to mean the Divi- 
 sional Code Authority for the Woolens and Trimmings Distributing 
 Trade, a Division of the Wholesaling or Distributing Trade. 
 
 Section 4. General Code. — The term " General Code ", as used 
 herein, shall be defined to mean the Code of Fair Competition for 
 the Wholesaling or Distributing Trade. 
 
 Section 5. Woolens and Trimmings. — The term " Woolens and 
 Trimmings " as used herein, shall be defined to include all types of 
 woolens and tailors trimmings and expendable supplies, customarily 
 used by Merchant Tailors. 
 
 (4) 
 
Section 6. Merchant Tailors. — The term " Merchant Tailors " ag 
 used herein, includes Merchant Tailors, Custom Tailors, Tailoring 
 Departments of retail or department stores and any retail establish- 
 ment where clothes are made or sold to the individual measurement. 
 
 Section 7. Season. — The " Spring Season " as used herein, is de- 
 fined as commencing January 1, and expiring June 30th; and the 
 " Fall Season " is defined as commencing July 1 and expiring 
 December 31st. 
 
 Article III — Administration 
 
 SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE 
 
 Section 1. (a) The Divisional Code Authority shall consist of 
 seven (7) members from among the Trade or representatives thereof, 
 five (5) to be selected by the Board of Directors of the National 
 Woolens & Trimmings Association; one (1) to be selected by the 
 Pacific Coast Woolens & Trimmings Association and one (1) to be 
 selected by the Administrator, to represent those members of the 
 Trade who are not members of either Association. 
 
 (b) The terms of office of members of the Divisional Code Au- 
 thority and the method of electing their successors, either for full 
 new terms or for unexpired terms, shall be established in the By-Laws 
 of the Divisional Code Authority. 
 
 Section 2. Subject to such rules and regulations as may be pre- 
 scribed by the Administrator, the Divisional Code Authority shall 
 have the following duties and powers in addition to those prescribed 
 in the General Code : 
 
 (a) To appoint a Trade Practice Committee which shall meet 
 with the Trade Practice Committees appointed under such other 
 Codes of Fair Competition as may be related to the Trade, except 
 other Supplemental Codes to the General Code, for the purpose of 
 formulating fair trade practices to govern the relationship between 
 production and distribution 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 this Supple- 
 mental Code and such other Codes of Fair Competition. 
 
 (b) To organize, elect officers, hire employees, and perform such 
 other acts as may be necessary for the purposes of administration of 
 this Supplemental Code. 
 
 (c) To adopt By-Laws and rules and regulations for its procedure. 
 
 (d) To use such Trade Associations and other agencies as it 
 deems proper for the carrying out of any of its activities provided 
 for herein ; provided that nothing herein shall relieve the Divisional 
 Code Authority of its duties or responsibilities under this Supple- 
 mental Code and that such Trade Associations and Agencies shall 
 at all times be subject to and comply with the provisions hereof. 
 
 (e) To recommend to the Administrator any action or measures 
 deemed advisable, including further fair trade practice provisions 
 to govern members of the Trade in their relations with each other or 
 with other trades, measures for industrial planning, and stabiliza- 
 tion of employment; and including modifications of this Supple- 
 mental Code which shall become effective as part hereof upon ap- 
 
proval by the Administrator after such notice and hearing as he may 
 specify. 
 
 (f) To obtain from members of the Trade such information and 
 reports as are required for the administration of the Supplemental 
 Code. In addition to information required to be submitted to the 
 General Code Authority and to the Divisional Code Authority mem- 
 bers of the Trade subject to this Supplemental Code shall furnish 
 such statistical information as the Administrator may deem neces- 
 sary for the purposes recited in Section 3 (a) of the Act, to such 
 federal and state agencies as he may designate; provided that noth- 
 ing in this Supplemental Code shall relieve any member of the Trade 
 of any existing obligations to furnish reports to any governmental 
 agency. No individual report shall be disclosed to any other member 
 of the Trade including Members of the Divisional Code Authority or 
 any other party except to such other governmental agencies as may 
 be directed by the Administrator. No such data or information 
 shall be published, except in combination with similar data, and in 
 such manner as to avoid the disclosure of confidential information. 
 
 Section 3. It being found necessary in order to support the Ad- 
 ministration of this Supplemental Code and to maintain the stand- 
 ards of fair competition established hereunder and to effectuate the 
 policy of the Act, the Divisional Code Authority is authorized : 
 
 (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 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 obtain equitable 
 contribution as above set forth by all members of the Trade, and 
 to that end, if necessary, to institute legal proceedings therefor in its 
 own name. 
 
 Section 4. Each member of the Trade shall pay his or its equita- 
 ble contribution to the expenses of the maintenance of the Divisional 
 Code Authority, determined as hereinabove provided, and subject 
 to rules and regulations pertaining thereto issued by the Adminis- 
 trator. Only members of the Trade complying with the Code and 
 contributing to the expenses of its administration as hereinabove 
 provided, shall be entitled to participate in the selection of members 
 of the Divisional Code Authority or to receive the benefits of any 
 of its voluntary activities or to make use of any emblem or insignia 
 of the National Recovery Administration. 
 
 Section 5. The Divisional Code Authority shall neither incur nor 
 pay any obligation in excess of the amount thereof as estimated in its 
 approved budget, except upon approval of the Administrator; and 
 no subsequent budget shall contain any deficiency item for expendi- 
 tures in excess of prior budget estimates except those which the 
 Administrator shall have so approved. 
 
Section 6. Nothing contained in this Supplemental Code shall con- 
 stitute the members of the Divisional Code Authority partners for 
 any purpose nor shall any member of the Divisional Code Authority 
 be liable in any manner to anyone for any act of any other member, 
 officer, agent, or employee of the Divisional Code Authority. Nor 
 shall any member of the Divisional Code Authority exercising rea- 
 sonable diligence in the conduct of his duties hereunder be liable to 
 anyone for any action or omission to act under this Supplemental 
 Code except for his own wilful misfeasance or non-feasance. 
 
 Section 7. 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 Adminis- 
 trator may require that such action be suspended to afford an oppor- 
 tunity for investigation of the merits of such action and for further 
 consideration 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 (30) days' 
 notice to him of intention to proceed with such action in its original 
 or modified form. 
 
 Section 8. In order to assist in making effective the reports from 
 the Trade and in eliminating unfair competition, the Divisional 
 Code Authority shall, within one month after the effective date of 
 the Supplemental Code, appoint a committee so constituted as to 
 give producer, consumer, and governmental representation, to make 
 a study with a view to the establishment of classifications and stand- 
 ards of quality of products of the Trade, wherever such standards 
 are deemed feasible. The findings and recommendations of this 
 committee shall, within six months, be submitted to the Adminis- 
 trator, and after such hearings and investigations as he may desig- 
 nate, and upon approval by him, shall be made a part of this Supple- 
 mental Code and be binding upon every member of the Trade. 
 
 Article IV — Trade Practices 
 
 SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE 
 
 Section 1. The following maximum terms, discounts and clatings 
 shall prevail and any violation thereof shall be deemed a violation 
 of this Supplemental Code : 
 
 (a^ Maximum terms and cash discounts shall be five per cent 
 (5%), ten (10) days; three per cent (3%), forty (40) clays; net, 
 sixty (60) days. 
 
 (b) An Order, for woolens of less than thirty (30) yards, and/or 
 an order for trimmings, the total purchase price of which is less 
 than Seventy-five Dollars ($75.00), shipped prior to the twenty- 
 fifth (25) day of any month, may be dated as of the first day of 
 the following month. 
 
 (c) An Order, for woolens of less than thirty (30) yards, and/or 
 an order for trimmings, the total purchase price of which, is less 
 than Seventy-five Dollars ($75.00) , shipped on or after the twenty- 
 fifth (25) day of any month, may be dated as of the first day of 
 the second month following. 
 
 (d) In addition to the dating provided for in paragraphs (b), 
 and (c), a Stock Order, for woolens of not less than thirty (30) yards 
 
8 
 
 and/or a Stock Order for trimmings the total purchase price of 
 which is not less than Seventy-five .Dollars ($75.00) shipped at one 
 time after March 1st, for the Spring Season and after September 
 1st for the Fall Season, may carry an additional thirty (30) days' 
 dating. 
 
 (e) An Advance Order for woolens of not less than thirty (30) 
 yards, and/or an Advance Order for trimmings, the total pur- 
 chase price of which is not less than Seventy-Five Dollars ($75.00) 
 placed at one time and providing for one specified date of delivery, 
 may be dated April 1st for the Spring season for goods shipped on 
 or after January 1st of such season and October 1st for the Fall 
 season, for goods shipped on or after July 1st of such season. 
 
 (f) Members of the Trade shall charge interest on all past 
 due accounts at the rate of 6% per annum, unless the legal rate 
 be lower, in which case such lower rate shall prevail. Interest shall 
 be computed from maturity or from the 30th day after maturity. 
 
 (g) The rate allowed for Anticipation shall not be in excess of 
 six per cent (6%) per annum. 
 
 (h) The deduction of a cash discount is not allowable when pay- 
 ment is made by Note or Trade Acceptance. 
 
 Section 2. There shall be no discrimination in the price of woolens 
 and trimmings to Merchant Tailors. Goods shall be quoted or 
 priced on a net basis and no discounts shall be allowed therefrom 
 except discounts for cash payment provided for in paragraph (a) 
 Section 1 of this Article. 
 
 Provided, however, that nothing in this Section shall be construed 
 to prevent reasonable and fair price differentials from being allowed 
 on the basis of quantity purchased and/or shipped and/or billed at 
 one time to a single buyer or on the basis of such other factors as the 
 Administrator shall deem proper. 
 
 Section 3. It shall be an unfair trade practice for any "Whole- 
 saler to sell or offer to sell woolens and/or trimmings at such prices 
 or upon such terms or conditions of sale that the buyer will pay 
 less therefor than said Wholesaler's individual cost. Such cost 
 shall include the actual net invoice cost of the woolens or trimmings 
 to the Wholesaler plus transportation cost to the Wholesaler's ware- 
 house. Such cost shall further include actual wages for store labor 
 or labor involved in direct handling when determined in accordance 
 with an accounting formula to be determined by the Divisional Code 
 Authority and approved by the Administrator. Nothing herein con- 
 tained shall be construed to permit the Divisional Code Authority, 
 any agent thereof, or any member of the Trade to suggest uniform 
 additions, percentages or differentials or other uniform items of cost 
 which are designed to bring about arbitrary uniformity of costs or 
 prices. 
 
 Nothing contained in the above paragraph shall be interpreted to 
 prevent the sale below cost at prices necessary for their disposal of 
 discontinued lines from previous selling seasons, surplus merchan- 
 dise accumulated from previous selling seasons, or damaged mer- 
 chandise, or forced liquidation of current stocks due to financial em- 
 barrassment, provided that in such cases of forced liquidation the 
 approval of the Divisional Code Authority, subject to the disap- 
 proval of the Administrator, must be secured before such sale may 
 
be made, and the member of the Trade shall certify that he is acting 
 in good faith. 1 
 
 Section 4. No goods shall be delivered on consignment except 
 where the Divisional Code Authority may allow under circumstances 
 to be defined by it. Goods shall not be delivered on a sale or return 
 basis nor shall goods be delivered upon memorandum or for display 
 or otherwise for the purpose of evading the terms of this provision. 
 Nothing in this section shall be construed to prohibit the delivery 
 of samples not exceeding sixty-five (65) square inches in size. 
 
 Section 5. (a) All woolen lengths based on a fifty -six inch (56") 
 width or over, on double width six-quarters (6/4) goods and on a 
 twenty-eight inch {28") width or over on single width three-quar- 
 ters (%) goods, must be measured not to exceed thirty -seven inches 
 (37") to the yard. All linings shall be measured not to exceed 
 thirty-six inches (36") to the yard. 
 
 (b) No claim may be allowed for short measure for any length 
 delivered measuring thirty-six inches (36") to the yard before being 
 shrunk. 
 
 (c) No allowances for short measure shall be made after the goods 
 are cut by the purchaser. 
 
 Section 6. Nothing contained in this Supplemental Code shall be 
 construed as preventing the establishment of higher prices for pur- 
 chases from samples than for purchases for stock. 
 
 Section 7. It shall be an unfair trade practice for members of 
 the Trade to give special personal use discounts, lower prices, gratui- 
 ties, or other merchandise to any Merchant Tailor, or any employee 
 of any Merchant Tailor. 
 
 Article V — Modification 
 
 This Supplemental Code and all the provisions thereof are ex- 
 pressly made subject to the right of the President, in accordance 
 with the provisions of 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 VI — Effective Date 
 
 This Supplemental Code shall become effective on the 10th day 
 after its approval by the Administrator. 
 
 Approved Code No. 201 — Supplement No. 14. 
 Registry No. 286-02. 
 
 1 Stayed — See paragraph 2 of order approving this Code. 
 
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UNIVERSITY OF FLORIDA 
 
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