V Approved Code No. 201 — Supplement No. 11 Registry No. 912—11 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FUR WHOLESALING AND DISTRIBUTING TRADE (A Division of the Wholesaling or Distributing Trade) AS APPROVED ON JUNE 9, 1934 WE DO OUR PART UNIV. OF FL Lll. » * r U.S. DEPO^ UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. Price S cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. 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Approved Code No. 201 — Supplement No. 11 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FUR WHOLESALING AND DISTRIBUTING TRADE As Approved on June 9, 1934 ORDER Supplementary Code of Fair Competition for the Fur Whole- saling and 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 1G, 1933, for approval of a Supple- mental Code of Fair Competition for the Fur Wholesaling and Dis- tributing Trade to the Code of Fair Competition for the Wholesal- ing 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 : 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, subject, however, to the following conditions: (1) that the provisions of Section 1 and Section 2 of Article VII be and are hereby stayed, pending further study and investigation of the probable effects of such provisions on the established prac- tices and marketing needs of the Trade, and until the approval by me of recommendations of the Divisional Code Authority based upon such investigation, and subject to my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : H.O.King, Division Administrator. Washington, D.C., June 9, 1934. CG33-T Go7-7G 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 Fur Wholesaling and Distributing Trade conducted in Room 109 of the Raleigh Hotel on April 21, 1934. The Supplemental Code which is attached was presented by a duly qualified and authorized representative of the Trade, complying with the statutory requirements, said to represent 82 per cent in number and about 80 per cent in volume of sales of the Trade which could be included in this Supplemental Code. THE TRADE According to statistics furnished by members of the Fur Whole- saling and Distributing Trade, there are approximately 85 estab- lishments with aggregate annual sales of $10,000,000. The Trade employs about 4,000 persons. HOURS AND WAGES The hour and wage provisions of this Supplemental Code estab- lish a maximum 40 hour work week and a minimum $16 weekly wage. OTHER PROVISIONS OF THE CODE The provisions containing supplemental definitions are considered 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 Practices proposed are not considered in any way ob- jectionable. The provision regarding labels is designed to eliminate any conflict between the manufacturer and the wholesaler. 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 poli- cies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof, and will provide for the general welfare by promoting the organization of trade for the purpose of cooperative action among trade groups, (2) 3 be inducing and maintaining united action of labor and management under adequate governmental sanction and supervision, by eliminat- ing unfair competitive practices, by promoting the fullest possible use of the present productive rapacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricul- tural 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 inequitable 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 elimi- nate 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, Hugh S. Johnson, A dministrator. Juxe 9, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE FUR WHOLESALING AND DISTRIBUTING TRADE A DIVISION OF TELE 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 Fur Wholesaling and Distributing Trade, pur- suant to Article VI, Section 1 (c) of the Code of Fair Competition for the wholesaling or Distributing Trade, approved by the Presi- dent of the United States on January 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 Supplemental Code are the standards of fair competition for, and are binding upon every member of, the said Fur Wholesaling and Dis- tributing Trade. Article II — Definitions 1. The term " fur wholesaler " or " fur distributor " as used herein is defined to mean any individual, partnership, association, corpora- tion or other form of enterprise, or a definitely organized division thereof definitely organized to render and rendering a general dis- tribution service of manufactured fur garments, which buys and maintains at his or its place of business a stock of manufactured fur garments and which through salesmen, advertising, and/or other sales promotion devices, sells to retailers and/or to institutional, com- mercial, and/or industrial users. 2. The term " the Trade " is defined to mean the business in which fur wholesalers or fur distributors engage. 3. The term " manufactured fur garments " as used herein shall mean manufactured fur coats, fur scarfs, fur trimmings, fur rugs, fur pocket-books, fur muffs and kindred manufactured fur articles. 4. The term " Divisional Code Authority ", as used herein, shall mean the Divisional Code Authority for the Fur Wholesaling and Distributing Trade, a division of the Wholesaling or Distributing Trade. 5. The term " General Code ", as used herein, shall mean the Code of Fair Competition for the Wholesaling or Distributing Trade. 6. The term "Association ", as used herein, shall mean the Fur Wholesalers Association of America, Inc. (4) Article III — Hours 1. (Superseding Article III, Sections 1 (a) and 1 (b) of the General Code.) No employee shall be permitted to work more than forty (40) hours in any one week, nor more than eight (8) hours in any twenty-four hour period, nor more than six (G) days in any seven-day period, except that employee may be permitted to work forty-eight hours per week during a maximum of twelve (12) in any calendar year provided that for any and all such work in excess of forty (40) hours per week such employee shall be paid at not less than one and one-third times the hourly rate payable for the basic forty (40) hour week. 2. The provisions of this Article shall not apply to persons regu- larly receiving a salary of $35 or more per week, employed in an executive, managerial, or administrative capacity. Article IV — Wages 1. (Superseding Article IV, Section 1 (a), (b), (c),and (e) of the General Code.) No employee shall be paid less than $16 per week, or less than 40$f per hour, for a forty (40) hour work week. 2. Junior employees between the ages of 10 and 18 years, inclu- sive, may be paid at the rate of two dollars ($2.00) less per week than the minimum wage rate per w r eek otherwise applicable to them for the first 12 months of their employment; and learners over 18 years of age may, for a period of three months from the date of their employment, be paid at the rate of two dollars ($2.00) less per week than the minimum wage per week otherwise applicable to them. The number of employees classified as juniors or learners combined shall not exceed more than 10% of all empk^ees. 3. (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 full-time weekly earn- ings as of July 1, 1933 reduced. No employee whose normal full- time weekly hours as of July 1, 1933 are reduced 20% or more shall have his full-time weekly earnings as of July 1, 1933, reduced by more than 10%. Wages above the minimum shall be increased by an equitable adjustment of all pay schedules in order to maintain dif- ferentials existing prior to the adoption of this Supplemental Code. "Within sixty (60) days after the effective date of this Supplemental Code a report of all wage adjustments shall be made to the Admin- istrator. Article V — General Labor Provisions 1. Every employer shall provide for the safety and health of his employees. 2. There shall be no inside or outside contracting other than per- mitted by the approved Fur Manufacturing Code. 3. Every employee discharged since July 1, 1933, who has been re-employed at a lower rate for the same class of work shall report such fact to his present employer and it shall be the duty of such employer to submit a list of such cases to the Administration member of the Code Authority. Every employee shall receive a vacation with full pay, two weeks out of every fifty-two week period. 4. No employee who has been regularly employed for eight weeks with any one establishment may be discharged without a dismissal pay of two weeks in advance. No employee shall be dismissed by reason of making a complaint or giving evidence with respect to an alleged violation of this Supplemental Code. Article VI — Administration 1. (a) To provide an effective procedure for the administration of this Supplemental Code and to cooperate with the Administration in the administration of this Supplemental Code, a Divisional Code Authority is hereby established. The Divisional Code Authority shall consist of nine members or ten members, if the Administrator deems advisable, to be chosen in the following manner: Five shall be elected by the members of the Trade located in the State of New York, who are members of the Association. One shall be elected by the members of the Trade located in the States of Illinois and Minnesota, who are members of the Association. One shall be elected by the members of the Trade located in the State of Michigan, who are members of the Association. One shall be elected by the members of the Trade located in the States of California, Oregon, and Washington, who are members of the Association. One shall be elected by the members of the Trade located in the States other than herein provided for, who are members of the Association. The Administrator may, if he deem it advisable, appoint the tenth member of the Divisional Code Authority from the Fur Whole- salers who are not members of the Association. (b) The Divisional Code Authority shall from its membership elect one member to represent the Trade on the General Code Authority. (c) 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 three (3) days after the approval of this Supplemental Code, prepare sepa- rate ballots for the different territorial divisions specified in Sub- section (a) 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 from the State of New York, one from the States of Illinois and Minnesota, and one from the State of Michi- gan, one from the States of California, Oregon and Washington, and one from the States other than herein provided for. The said 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. Such ballots shall be mailed to each member of the Association and such other members of the Trade who have agreed to be bound by the terms of this Supplemental Code. 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 assent and compliance to this Sup- plemental Code and the General Code. The ballots shall be publicly opened and the votes tabulated bv the nominating Committee, and the nine names receiving a plurality vote shall be declared members of the Divisional Code Authority. 2. Each member of the Trade shall within thirty (30) days after the effective date of this Supplemental Code register with the Divi- sional Code Authority. All meml>ers of the Trade who may engage in the Trade thereafter shall likewise register with the Divisional Code Authority. Registration of the members of the Trade shall include full name and mailing address of such member. The time limit for registration by any member may be extended by the Divisional Code Authority. 3. Subject to such rules and regulations as may be issued by the Administrator, the Divisional Code Authority shall have the follow- ing 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, which shall meet with the Trade Practice Committees appointed under such other Codes except Supplemental Codes to the General Code as may be related to the Trade for the purpose of formulating Fair Trade Practices to govern the relationships between production and distri- bution employers under this Code and under such others, to the end that such Fair Trade Practices may be proposed to the Administra- tor as an amendment to this Code and such other Codes. (b) To appoint a Regional Committee in each 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 Authority 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 adopt by-laws, rules, and regulations for its procedure. (f ) After such public hearing as the Administrator may designate, and subject to the approval of the Administrator, the Divisional Code Authority may establish other and further rules than are con- tained in this Supplemental Code at the present time covering such other subjects as conditions in this Trade may require, together with regulations concerning principles such as loss limitation, selling below cost, and price reporting. (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. 4. Nothing contained in this Supplemental Code shall constitute the members of the Divisional Code Authority partners for any pur- pose, nor shall any member or members of the Divisional Code Au- thority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of the Divisional Code Au- thority. Nor shall any member of the Divisional Code Authority exercising reasonable diligence in the conduct of his duties hereunder, 8 be liable to anyone for any act or omission to act, under this Supple- mental Code, except for his own willful misfeasance or non-feasance. 5. 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 considera- tion 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. 6. 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 Supplemental 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 con- tribution 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) 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 administration shall constitute a violation of this Supplemental Code. 7. Only members of the Trade complying with the Supplemental Code and the General Code and contributing to the expenses of its administration as provided in Section 6 hereof shall be entitled to participate in the selection 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. 8. (a) There shall be established an Industrial Relations Com- mittee for the Fur Wholesaling and Distributing Trade, to be con- stituted of seven (7) persons to be selected as follows: (1) An impartial chairman to be appointed by the Administrator 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 Fur Wholesaling and Distributing Trade. (3) Three (3) representatives of employees to be appointed by a truly representative labor organization, if such exists, or representa- tives nominated by the Labor Advisory Board of the National Recovery 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 to 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 Supplemental Code. (4) To offer their services as arbitrators, or their assistance in securing arbitrators in any disputes or complaints arising between emplo}*ers 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 * To assure fair competition and practices in the Trade the follow- ing trade practice provisions are made a part of this Supplemental Code and are binding on all fur wholesalers and distributors : 1. No member of the Trade shall grant an}'' greater cash discount than 2%, ten days, end of month; it being understood that all mer- chandise sold on a longer dating than 10 days e.o.m. shall be sold net, no discount. The maximum rate of anticipation shall be 6% per annum. 2. No member of the Trade shall ship or deliver merchandise coming under the provisions of this Supplemental Code on consign- ment or memorandum; except under circumstances to be defined by the Divisional Code Authority; and except that a member of the Trade may ship merchandise for selection or approval provided that said merchandise be returned within a period of not more than three business days from its receipt by the consignee. 3. No member of the Trade shall accept the return of the whole or any part of merchandise where the same has been selected by and sold to the customer or his agent from stock and shipped pursuant to order placed therefor, except for latent defects or pursuant to per- mission first obtained from the Divisional Code Authority. 4. No member of the Trade shall leave with any buying agency office or representative samples of manufactured fur garments or merchandise for the purpose of procuring orders thereon. 5. No member of the Trade shall give, furnish, lend or ship any manufactured furs to any customer for the purpose of using the same as "show pieces" for window or other display, with the priv- il< >ge to the customer of returning same. 6. Xo member of the Trade shall maintain stocks of manufactured merchandise with any resident salesman unless such salesman be an exclusive employee of such member of the Trade. 7. No member of the Trade shall accept from purchasers the return of any manufactured furs shipped or delivered pursuant to order 1 See paragraph 2 of order approving this Code. 10 where the merchandise has been in the possession of the purchaser for more than five business days, except when the merchandise has latent defects or except pursuant to permission first obtained from the Divisional Code Authority. Article VIII — Labels No member of this Trade shall purchase any manufactured fur garments unless the same shall bear a N. R. A. label placed thereon by the manufacturer of said garment. A fur wholesaler shall have the option of either permitting the said label to remain upon the garment or of removing the said label, and placing thereupon his own N. R. A. label. If the fur wholesaler decides to substitute his own label, he shall transmit the original manufacturer's N. R. A. label to the Code Au- thority governing the manufacturer of the garment from which the label was removed. Any member of the Trade may apply to the Divisional Code Au- thority for N. R. A. labels, which labels small be granted to him in serial numbers so long as he is complying with the provisions of this Supplemental Code. Subject to the approval of the Administrator, the Divisional Code Authority shall establish rules and regulations and appropriate ma- chinery for the issuance, supervision and withdrawal of N. R. A. labels, and the charges to be made for such N. R. A. labels. Article IX — 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 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 X — Effective Date This Supplemental Code shall become effective on the tenth day after its approval by the Administrator. Approved Code No. 201 — Supplement No. 1L Registry No. 912-11. o UNIVERSITY OF FLORIDA 3 1262 08852 5570