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3658

FEDER AL REGISTER, Friday, August 18, 1939

Published by the Division of the Federal Register, The National Archives, pursuant to the authority contained in th e Federal Register Act, approved July 26, 1935 49
Stat. L. 500, under regulations prescribed by the Administrative Committee, with the approval of the President.
The Administrative Committee consists of the Archivist or Acting Archivist, an officer of the Department of Justice designated by the Attorney General, and the Public Printer or Acting Public Printer.

The daily issue of the F ederal R egister will be furnished by mail to subscribers, free of postage, for $1 per month or $10 per year;
single copies 10 cents each; payable in ad vance. Remit by money order payable to Superintendent of Documents, Government Printing Office, Washington, D. C.
Correspondence concerning the publica tion of the F ederal R egister should be ad dressed to the Director, Division of the Federal Register, The National Archives, Washington, D. C.

a revision and extension of the rules which had heretofore been issued by the Commission for this industry on July 21, 1936,3 and take the place of such pre viously issued rules.
The industry is composed of converters and integrated producers of cotton piece goods and mixed cotton and rayon goods.
Such goods, converted and sold by the members of the industry, embrace fab rics for clothiers linings; corset, bras siere, and allied trade fabrics; converted curtain and drapery fabrics; shirting fabrics; wash goods fabrics; interlining fabrics; bleached goods; and all other cotton and cotton-mixture fabrics. Ac cording to available information, the in dustry handles at least 51 per cent of the entire production of such goods and has an estimated total volume of annual sales averaging $500,000,000 or more.
The proceeding for the establishment of trade practice rules was instituted upon application of the industry. In the course thereof a draft of the rules as proposed for the industry was made available upon public notice issued by the Commission to all interested or affected parties, whereby they were afforded opportunity to present their views, including such pertinent informa tion, suggestions or objections as they de sired to submit, and to be heard in the premises. Accordingly, public hearing pursuant to such notice was held in Washington on July 17, 1939, and all matters submitted in the proceeding were duly received and considered.
Thereafter, and upon consideration of the entire proceeding, final action was taken by the Commission whereby it approved and received, respectively, the 1 F.R. 846.

to the grade, quality, quantity, use, size, material, content, thread count, origin shrinkage properties, color fastness washability, production, manufacture or distribution of such products, or in any other material respect, is an unfair trade practice.
110.3 Rule 3. F a l s e invoicing.
Withholding from or inserting in invoices any statements or information by reason of which omission or insertion a false record is made, wholly or in part, of the transactions represented on the face of such invoices, with the effect of thereby misleading or deceiving purchasers, pros pective purchasers or the consuming public, is an unfair trade practice.
110.4 Rule 4. Deception as to ori gin. In respect to any fabrics of the following types: 1 fabrics which have been woven or fabricated in a foreign THE RULES
country and imported in the gray or These rules promulgated by the Com other unfinished state and dyed or fin mission are designed to foster and pro ished in the United States; or 2 fabrics mote fair competitive conditions in the which have been imported in the finished interest of the industry and the public. state and dyed, redyed or refinished in They are not to be used, directly or in the United States; it is an unfair trade directly, as part of or in connection with practice:
any combination or agreement to fix a To offer for sale, sell or distribute prices, or for the suppression of compe any such fabrics under marks, stamps, tition, or otherwise to unreasonably brands, labels or representations which restrain trade.
have -the capacity and tendency or effect N o t e : The rules do not supplant, or re of misleading or deceiving purchasers or lieve any member of the industry or other, the consuming public into, the erroneous party of the necessity of complying with, belief that such fabrics were woven or applicable fiber identification rules and other pertinent Group I rules approved and pro fabricated in the United States, or that mulgated by the Federal Trade Commission. they were not so dyed, finished, redyed or refinished in the United States, as the Group I
case may be; or b To offer for sale, sell or distribute The unfair trade practices which are embraced in the Group I rules are con any such fabrics without the same be sidered to be unfair methods of competi ing marked, stamped, branded or labeled tion, unfair or deceptive acts or prac so as to indicate clearly and nondeceptices, or other illegal practices, pro tively 1 the country of origin of the hibited, within the purview of the Fed fabric, and 2 that such fabrics were eral Government, by acts of Congress, as woven or fabricated in such country and construed in the decisions of the Fed were dyed or finished or redyed or reeral Trade Commission or the courts; finished in the United States, as the case and appropriate proceedings in the may be; the failure, refusal or omission public interest will be taken by the Com to so mark, stamp, brand or label such mission to prevent the use, by any per fabrics having the tendency and capac son, partnership, corporation or other ity or result of thereby promoting, abet organization, of such unlawful practices ting or effectuating the marketing of in or directly affecting interstate comsuch products under conditions which are misleading or deceptive to purchas merce.
110.1 R ule 1. Misrepresentation of ers or the consuming public.
Nothing in this rule shall be con industry products. It is an unfair trade practice to make or publish, or cause to strued as relieving any member of the be made or published, directly or in industry or other party of the necessity directly, any false, misleading or decep of complying with the requirements of tive statement or representation, by way the customs laws or regulations, or other of advertisement or otherwise, concern applicable provisions of law or regular ing the grade, quality, quantity, use, size, tion, relating to the marking of im material, content,, thread count, origin, ported articles.
110.5 Rule 5. Substitution of prod shrinkage properties, color fastness, washability, production, manufacture or ucts. The practice of shipping or de distribution of any product of the in livering products which do not conform dustry or concerning any component of to samples submitted, to specifications such product, or in any other material upon which the sale is consumnjated, or to representations made prior to secur respect.
110.2 R ule 2. Misbranding. The ing the order, without the consent of the false or deceptive marking or branding purchasers to such substitutions an of products of the industry with respect with the tendency, capacity or effect of
rules appearing herein under Group I
and Group II.
In addition to the rules issued July 21, 1936, which are herein revised and ex tended, trade practice rules for various branches of this industry had theretofore been published under the auspices of the Commission as follows: Clothing Cotton Converting, September 1, 1931; Shirting Fabrics, December 14, 1931; and AllCotton Wash Goods, June 30, 1933. The present rules, as now promulgated, pro vide a consolidated and uniform set of trade practice provisions for the entire membership of the Cotton Converting Industry, and they supersede and take the place of all such previously published rules which had formerly been in effect.
The new trade practice rules for this industry are as follows;