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Child labor is banned and the minimum wage is retained. A new provision has been inserted to prevent the employment of women in any department between the hours of midnight and 6 a, m. This replaces the former prohibition of a third shift. It applies not only to worsted spinning and weaving and knitting but to all other departments. This means that the restrictions provided in the new agreement are based on social grounds and do not provide for the artificial limitation of machinery as such. It is expected that the effect will be practically the same as under the former code but it is felt that it is an advance to have the prohibition based on social grounds rather than on an artificial system of machine limitation.

Section 7A of the old N. I. R. A. referring to relations with employees has been omitted. The question of employee relations seems to have been completely covered by the Wagner labor bill which has now passed the Congress and accordingly it would appear that no further amplification of the Wagner bill need be included.

In order not to make the agreement any more inflexible than the N. R. A. code it has been prvided that a business conduct committee will be appointed to serve in much the same capacity as the former code authority. To the business conduct committee, therefore, will go all applications for temporary exemptions and all questions concerning the operation of the agreement. Until their successors are elected the old code authority of the industry will serve as the business conduct committee.

Contract forms for each division, which are simplifications of the forms used under the N. R. A. code, are also enclosed. These have already been considered and approved by subcommittees acting for each division. There will be no other rules for the separate divisions; the provisions of these standard forms incorporating all of the old rules which it is proposed to retain. It should be noted that the business conduct committee is to assist in the enforcement of contracts providing only that they follow these standard contract forms.

The rules are to become effective upon ratification by members of the industry owning, controlling, or operating not less than 75 percent of the machinery of the industry. Copies of the proposed rules and of the standard forms of contracts are being sent to all known members of the wool textile industry.

The reporting of prices for goods or services and the filing of copies of contracts have been discontinued upon the advice of counsel. This applies to the filing of minimum tariffs by the commission combers, the filing of copies of contracts for yarn, of price lists for blankets and the filing of copies of contracts or of price lists of piece goods. All the other statistical work of the industry is to be continued. The directors are unanimously of the opinion that the statistical services of the association should be continued and that their value to the industry will increase from year to year as a comparison is developed with preceding periods. The National Association of Wool Manufacturers is designated as the statistical agent to continue either by itself or in conjunction with other agencies the statistical work of the industry.

Will you kindly return the enclosed ballot promptly with any comments you may care to make? Respectfully submitted.

NATIONAL Association or Wool MANUFACTURERS.

ARTHUR BESSE, President. Rules of BusineSS PROCEDURE FOR THE Wool TEXTILE INDUSTRY, JUNE 27,1935

To maintain improved labor standards, to foster fair competitive opportunities, and to prevent abuses and injurious and unfair trade practices, the following rules of business procedure are herewith adopted:

1. Scope of industry.-Members of the wool textile industry shall include all persons, firms, associations, trusts, and corporations who engage in the operations detailed in appendix A, attached hereto and made a part hereof.

2. Minimum wage.--No worker employed north of the Mason-Dixon line shall be paid at a rate of less than 35 cents per hour or $14 per week of 40 hours, and no worker employed south of the Mason-Dixon line shall be paid at a rate of less than 32 cents per hour or $13 per week of 40 hours. Learners shall be considered as employees and must be paid at a rate not less than the prescribed minimum.

Workers employed at piece rates shall be paid rates which will produce an aggregate of not less per week of 40 hours than the minimums above provided. If a worker employed at piece rates earns less than the prescribed minimum for a week of 40 hours his pay shall be made up to that minimum, but credit for piece workers may be averaged over not to exceed two weekly pay periods.

3. Hours of labor.--No worker shall be employed in excess of 40 hours per week except as hereinafter provided or as specially approved by the business conduct committee.

This limitation shall not apply to: Office employees receiving more than $30 per week; repair shop crews, engineers, electricians, firemen, sales, and supervisory staff; shipping, watching, and outside crews. Office employees receiving $30 a week or less may not work over 48 hours in any one week or more than 40 hours averaged over a 13-week period.

4. Employment of minors.--No minor under the age of 16 shall be employed.

5. Hours of employment of women.-No woman shall be employed between midnight and 6 a. m.

6. Statistics.—The National Association of Wool Manufacturers is hereby appointed the official statistical agent for the members of the wool textile industry operating under these rules.

Such members shall furnish to the National Association of Wool Manufacturers or such statistical bureaus or agencies as it may see fit to appoint to cooperate with it in compiling data, periodic reports containing such information as may be requested with respect to number of employees, total hours of labor employed, total wages paid, wage rates, machine hours, figures on production, orders, billings, stocks on hand, and such other data as such association may reasonably require for the computation of statistics on the operations of the industry.

7. Contract forms.-Standard contract forms shall be adopted for each division of the wool textile industry or each subdivision where necessary. Each such standard form shall be recognized as setting forth the approved selling practices of the division or subdivision of the industry in question.

8. Administration.—A business conduct committee composed of six members shall be elected annually in the month of February by the members of the wool textile industry subscribing to these rules. The election shall be by ballot taken by mail and shall be conducted by the National Association of Wool Manufacturers. Until their successors are elected, the members of the former code authority of the wooltextile industry shall act as the business conduct committee.

Requests for exemption and all matters arising in connection with these rules of business procedure shall be referred to the business conduct committee, which shall have power to authorize limited exemptions upon presentation of data justifying such procedure.

The business conduct committee or its agents shall lend assistance in securing the enforcement of contracts, providing such contracts are executed on the standard contract forms duly adopted for the respective divisions or subdivisions.

9. Effective date.-These rules shall be recognized as setting forth the standards for business conduct of the members of the wool textile industry upon ratification by members of the industry owning, controlling or operating not less than 75 percent of the machinery of the industry.

10. Modification.The provisions of these rules may be modified, altered or amended by agreement of members of the wool textile industry owning, controlling or operating not less than 75 percent of the machinery of the industry. Any proposed modification, alteration or amendment shall become effective upon its ratification by members of the industry owning, controlling or operating 75 percent of the machinery of the industry. APPENDIX “A. DEFINITION OF WOOL TEXTILE INDUSTRY FOR RULES OF

BUSINESS PROCEDURE 1. Members of the wool textile industry shall include all persons, firms, associations, trusts, and corporations who engage in:

A. The performance of any of the following operations, whether carried on separately or as a part of a series of perations:

(a) The carbonizing, dyeing, and picking of rags and clips containing 10 percent or more by weight of animal fibers other than silk, and the garnetting of fiber from rags, clips, and mill waste containing 10 percent or more of animal fiber other than silk.

(b) The scouring and carbonizing of wool except the scouring and carbonizing of wool by firms who themselves spin the wool into yarns that will subsequently be manufactured into carpets and rugs or underwear.

(c) The combing and recombing of all top on Bradford and French combs except top combed by firms who themselves manufacture the yarn resulting therefrom into carpets and rugs.

(d) The spinning on the Bradford and French systems of all yarns except yarns spun by firms who themselves manufacture them into carpets and rugs.

(e) The spinning on the woolen system of all yarns containing by weight 10 percent or more of animal fibers other than silk, except yarns spun for use in carpets and rugs and yarns spun by firms who themselves manufacture them into underwear.

(f) The spinning on any other system of all yarns containing by weight more than 45 percent of animal fibers other than silk.

(9) The weaving of all fabrics or blankets containing by weight over 25 percent of animal fibers other than silk except the weaving of papermakers' fabrics and other fabrics for mechanical uses, fabrics containing 10 percent or more of horsehair or human hair, pile fabrics for upholstery or drapery purposes, and fabrics without pile for upholstery and drapery purposes requiring the use of 4-by-4 box-board looms with a jacquard machine having 600 hooks or more and two shuttles or more.

(h) The knitting of fabrics containing by weight over 25 percent of yarns spun on the woolen system that will be sold as piece goods.

(i) The following additional supplemental operations when carried on hy firms performing any of the above-enumerated operations:

1. Operations preparatory to those enumerated.
2. Operations between those enumerated.
3. Operations subsequent to those enumerated.

B. The sale of any of the services listed in “A,” items (a) to (h), inclusive, commonly referred to as the performance of commission work.

C. The sale of products of any of the operations listed in “A” by persons, firms, associations, trusts, or corporations carrying on such operations, or their agents; and the sale by any other persons, firms, associations, trusts, or corporations of tops combed on Bradford and French combs.

For the purposes of the foregoing definition of the wool textile industry there will be a 2-percent tolerance on the weight content percentages.

STANDARD CONTRACT

Piece goods selling division, wool textile industry In employing the standard contract as set forth below, members of the picce goods selling division are to observe the following procedure:

A. Maximum terms of all orders shall be 1 percent 10 days, net 60 days from date of invoice or shipment, whichever is earlier; additional time to be charged for at 6 percent per annum.

B. The following dating may be given (subject to change by the businessconduct committee): Bathrobe material:

Shipments April 1 to July 31, 1/10 net 60, August 15.
Shipments August 1 to October 15, 1/10 net 60, October 15.

Shipments October 16 to March 31, no dating.
Dress goods sold to dress-goods jobbers (for dress goods weighing not more
than 9 ounces per linear yard of 54-inch width):

Shipments May 15 to August 1, 1/10 net 60, August 1.
Shipments November 15 to February 1, 1/10 net 60, February 1.

Shipments during other periods, no dating.
Flannel shirting, mackinaw cloths, Meltons, and similar materials (but only

when sold to shirt manufacturers and to jacket manufacturers operating
under the Cotton Garment Manufacturing Code for manufacturing into
shirts, mackinaw, or zipper jackets):
Shipments December 1 to March 31, inclusive, may be billed as of

April 1, 1/10 net 60.

Shipments during other periods, no dating.
Women's wear:

Shipments in April, May, and June, 1/10 net 60 days July 1.
Shipments in October, November, and December, 1/10 net 60 days

January 1.

Shipments in other months, no dating. C. Orders (except those to be delivered within 10 days) are to be signed as indicated on the face thereof.

To appear on the face:

"This order will become a contract only when signed by the seller or confirmed in writing by the seller. The order shall be deemed dated as of the date of such confirmation.

"The undersigned hereby orders the above goods upon the terms as stated, including the terms and conditions printed on the back of this contract and forming a part hereof:

(Buyer)

Confirmed:

By 193,

(Seller)

By To appear on the back:

1. This order is not subject to cancelation except for failure to deliver in accordance with conditions of sale.

2. Sellers shall not be held liable for delayed delivery or for nondelivery caused by strikes, fires, or other causes beyond their control. If the production of the mill is curtailed by such causes, deliveries shall be demanded only proportionate to the production.

3. The acceptance by common carrier shall constitute delivery.

4. Merchandise shall not be returned nor allowance made after 30 days from receipt, nor after goods are sponged, cut, or otherwise processed. A period shorter than the maximum of 30 days may be specified on highly seasonal merchandise.

5. Terms of sale and delivery are set forth herein. Any additional conditions or specifications applying to this order must be stated on the face hereof, and may not be in conflict with the provisions printed hereon.

6. Partial deliveries shall be paid for at contract prices upon maturity of bills therefor.

7. This order is given and accepted subject to limit of credit determinable at any time by the seller.

8. Goods are sold f. o. b. common carrier most convenient to the mill. All freight, express, and delivery charges shall be paid by or charged as a separate item to the buyer. This shall not apply to the difference between express and freight, which difference shall be paid by the mill if goods are ordered by freight but are shipped by express because of lateness in delivery.

9. Unless fully specified as to color, pattern, etc., by 193. ---, goods on this order may be shipped as tentatively specified and delivery of such goods shall constitute a good delivery under the order.

10. The prices and terms quoted on this order are those actually applying to this transaction and are not subject to any discount not stated hereon, or to any rebate or modification.

11. Controversies or questions arising with respect to this contract which cannot be settled by the parties thereto shall, when the controversy or claim relates to the condition or quality of any merchandise delivered, be referred to the mutual adjustment bureau of the cloth and garment trades; all other controversies arising out of or relating to this contract or breach thereof shall be settled by arbitration in accordance with the rules, then obtaining, of the American Arbitration Association, and judgment upon the award rendered may be entered in the highest court of the forum, State or Federal, having jurisdiction.

Blanket division, wool textile industry 1. The merchandise ordered herewith is not subject to cancelation except for failure to deliver in accordance with conditions of sale.

2. Sellers shall not be held liable for delayed delivery or for nondelivery caused by strikes, fires, or other causes beyond their control. If the production of the mill is curtailed by such causes, deliveries shall be demanded only proportionate to the production.

3. The merchandise covered by this contract is sold f. o. b. mill or established warehouse. Delivery will be charged to or paid by the purchaser except within the city limits of a mill or established warehouse. Acceptance by common carrier shall constitute delivery.

4. Partial deliveries shall be paid for at contract prices upon maturity of bills therefor.

5. Maximum terms for all contracts shall be 2 percent 10 days, 60 extra, except that shipments made between April 1 and August 1 may be dated 20 percent 10 days October 1. Any additional time or credit accommodation shall be paid for by the purchaser.

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6. This order is given and accepted subject to limit of credit determinable at any time by the seller.

7. Additional conditions, if any, must be made in writing and appear on the face of this contract.

Sales yarn division, wool textile industry 1. This contract is not valid or enforceable unless signed by both buyer and seller and not subject to cancelation except for failure to deliver in accordance with conditions of sale.

2. The prices and terms of sale and delivery quoted on this order are those actually applying to this transaction and are not subject to any discount not stated hereon or any rebate. Any additional conditions or stipulations applying to this order must be stated on the face hereof and may not be in conflict with the provisions printed hereon.

3. Complete specifications, if not detailed on the face hereof, are to be in the hands of the seller within 4 months of the date it becomes effective, and are to be given as follows:

Date.
-pounds. By--
-pounds. By
-pounds. By

--pounds. By. No specifications are to call for delivery beyond 6 months of the date of contract.

4. The terms of this contract are not to exceed the recognized maximum terms of the industry (which for the purposes of this contract are outlined below) and are to be specifically stated on the face hereof.

Recognized maximum terms-Yarns sold to weaver8.—The maximum terms shall be 2 percent 10 days, net 60 days from date of invoice or shipment, whichever is earlier. No redating. Anticipation to be at the rate of not more than 6 percent per annum. Additional time is to be charged for at a rate of not less than 6 percent per annum. Shipments by common carrier shall be f. o. b. common carrier most convenient to the mill. If prepaid by the mill the cost of delivery from the mill to the customer shall appear on the invoice as a separate item not subject to discount.

Yarns sold to knitters and jobber 8.—The maximum terms shall be 3 percent 10 days, or 2 percent 10 days, 60 extra, net 71 days from date of invoice or shipment, whichever is earlier. No redating. Anticipation to be at the rate of not more than 6 percent per annum. Additional time is to be charged for at a rate of not less than 6 percent per annum.

5. Sellers shall not be held liable for late or nondelivery due to strikes, fires, or other like causes beyond their control. Delivery shall only be made proportionate to production in such cases.

6. The prices and deliveries specified in this contract are subject to change to the extent necessitated by any Federal legislation or Government action affecting the sellers' operating schedules.

7. No claims relating to excessive moisture content, short weight, or count variations shall be allowed if made after 10 days from receipt of shipment. The weight of yarn as billed is to include tie bands but to exclude paper wrappings or twine.

8. Partial deliveries are to be paid for at contract prices upon maturity of bills therefor.

9. This contract is given and accepted subject to limit or withdrawal of credit determinable at any time by the seller.

10. Cancelation or failure of the buyer to specify as provided or to accept delivery shall constitute a breach of contract and the seller may sell in the open market at auction or otherwise any material provided for the contract, either as raw stock, top or yarn, and the buyer shall be liable for any loss.

11. In accordance with established procedure, all weights of shipments of worsted spun yarn of 100 pounds or more shall be computed and billed on the basis of a — percent regain of moisture from the moisture free weight, and the following information is to appear on invoices covering such shipments:

(a) Scale weight.
(6) Percent regain.

Conditioned weight.

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