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Registry No. 282--01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JANUARY 16, 1934
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UNIVERSITY OF FLORIDA
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DISTRICT OFFICES OF THEE DEPARBTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Bir~mingham, ABla.: 257 Federal Building.
Boston, Miass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamaber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North WFells Street.
Cleveland, Ohio.: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Banki Building.
Houston, T1ex.: Cham~ber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, IMo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.:[ 229 Federal Building.
Minneapolis, BMin.: 213 Federal Building.
New Orleans, La.: Ro~om 225-A, Custombouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Comnmercial Trust Buildingo.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Buildlingr.
St. Louis, MVo.: 506 Oliv~e Street.
i I Ban Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 8093 Federal Office Building.
Apprve Code No. 218
iareCODE OF FAIRC~ COMPETITION
As; Approved on January 16, 1934
APPROVING CODE O]F FAIR COMPETITION
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indust~rial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Wtool 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
NOWT, 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 Presl-
-dent, including Executive Order No. 6543-A, dated December30
1933, and otherwise; do hereby incorporate by: reference said annexed
report and do find that said 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 Code of Fair
Competition be and it is hereby approved.
Hona S. JoEnhson,
Administrator for Industrial Recovery.
Approval recommended :
A. D. TYHITESIDE,
Division Ad ministlatorl.
Jan va2ry 16, 1934.
Thle Wh ite H~ouse.
SIR: This is the report on the Code of Fa~ir Competition for t~he
Wool Tradle submitted by the B~oston Wool Trade Atssociation. The
hearing was conduc~ted in Watshington, D.C., on October 23, 1933.
Every person who requested an appFe~aance was freely heard in
accordance with statutory and regrulator~y requiremlents;. The Code
was presented by duly qualified and authorized representatives of
the trade, representing approximately '7370 of the volume of
DECRITI[ON OF INDUSTRY
This Code was originally submitted by the Bostoln Wool Trade
Association, a representative body of sev~erall years stalnding~ in the
trade. TIhis Association1, however, limited its membership to firms
having a place of business in Boston. Because of this restriction on
membership, a newf association, t~he Nat~ionatl WC7ool Trade Associa-
tion w-as formned~ which embraces an even higher percent of t~he trade
than did the former association.
Thne services performed by the Wool Tra~de are primarily those of
merchandising and do not include producing or manufacturing proc-
esses. The W~ool Trade deals directly wBJith the growers, furnishing
them at shearing time with an immediate outlet for their product,
and thereafter assizming the financial responsibility of enrrying the
wool until, it passes into the manufacturer's hands. The Wool Trade
is concerned withl handling, financing, grading, wRarehousinga, and
selling of this product from grower to manufacturer. The business
is, by na ture, seasonal. Its peak occurs at t~he time of t.he spring wool
clip when the heavy weights of wool from thne W~est cause a high
pealk of employment of temporary labor.
The Wlo~ol T~rade is already identified with carrying out the pur-
poses of the Farmn Credit -Admrinistration and is, in certain instances,
subject to regulation by that branch of the Governmnent. Through
loans mnade to wool growers by farnm relie-f and loan agencies, the
Far Credit Adminlistration has become directly or indirectly inter-
estefd in a substantial proportion of tihe wool clip of the United
States. This wool is being handlledl on consignment by members of
the Wool Trade who have thereby been subjected to regulation not
only with respect to the cons~igned wool which they) are handling for
the farm relief agencies but also wfithl respect to the manner in which
they handle wool which they themselves own or hold on consignment
Although the Wool Trade, as such, colndulcts no actual ma2nufac-
turing operations, it deals in wool in processed forms. Thus, it
de~als in t~he byproducnts of wcool manulfneturing, such as wool wastes
and noils, which constitute, the raw stock usedl by certain woolen
.man ufa ctu rers'E. It also deals in sc~ouredl and carbonized wool, gar-
netted stock: and similar merchandcise which are the direct products
of processes designedl tor lpnrepa it, for subsequenIIt manulfacturing
operations. Although these preparato processes are not actually
conducted by the Wool Trade., they are ntl done for them on
commission by manufacturers, the purpose ing to convert the com-,
modity into merchantable form. The grading and sorting of wool,
processes which involve no machinery but prepare the wool for sale,
are functions of the Wool Trade as merchants.
The W~ool Trade, as defined in this Code, does not include top mak
ers who, although owning no maachineryr, bu wool, sort it and cause
it to be scoured and combed in proper blends by the commission
wool comber. As a group, at their request, they hauve been treated
in this Code as manufacturers rather than maerchant.
The Industry proposes to pa~y a, minimum wage of 37Vs cents per
hour. Hours of labor are linuted to 40 hours per week except for
watchmen, outside salesmen, and buyers and managreri~al workers re-
ceiving more than $35.00 per week. Clerical adoffice ~employees
may work an average of 40 hours per week during the six months,
beginning May 15, but not more than 48 hours in any one week. The
code provides -that in order to prevent or relieve transportation con-
gJestion, durin the peakr of the season, employees engaged in this
activity may work in excess of the maximum hours and shall be paid
time and onle third jfor overtime.
The Code provides also that employers of not more than five per-
sons located in towns of less than 2,500 population are not included
within the minimum wage and maximum hour provisions. Ti
is to accommodate those persons such as farmers and small store
owners, mainly in the wool-growing sections of the West, w~ho buy
and sell wool incidentally to other occupations during the shearmg
The provisions of the Administration of this Code are capable of
providing the N.R.A. and the Wool Trade with sufficient data to
recommend any modifications or amendments that may be indicated
by experience. It is also provided that fair trade practices shall
be submitted within sixty days from the effective date, and that these
fair trade practices are to be mutually agreed upon by the members
of this trade and the National Association of Wool Mianufacturers.
CON CLUSIO N
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that--
(a) Said Code is well designed to promote the policies and pur-
poses 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 thie amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade
groups by inducing and maintaining united action of labor and
.management under adeqluate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting
the fullest possible utilization 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 agrliculturnl products through increasinga purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industryS.
(b) Said Trade normally employs not more than 50,000 em-
ployees; and is not classifed by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said _Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof ; and that the applicant asso-
ciation is a trade association truly representative: of the aforesaid
Trade; and that said association imposes no equitable restrictions
on admission to membership therein.
(d) Th'le Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not dlesigned to and will not eliminate or oppress
small enterprises and will not operate to discriminate against themr.
(f) Throse engaged in other steps of the economic process have not
been deprived of the right to be hen rd prior to approval of said Code.
For these reasons, this Code of Fiair Competition for the W~ool
Trade has been approved.
Hoozr S. JoHNson,
JBNTIaRP 16, 1934.
To effectuate the policies of Title I of the National Industrial Re-
covery) Act., t~he following provisions are established as a Code of
Fair Competition for the W~ool Trade, and shall be the standard of
fair competition for such trade and shall be binding upon every
ARTICLE II- DEFENPTIONS
1. The term "L wool trade as used herein sh~all mean the business
of buying, selling, or dealing in any of t~he followirw; commodities:
(a) wool, shorn or pulled; (b) new wool waszte; (c' noils and all
other by-prodlucts of w~ool manufacturing; (d) the products of wool0
resulting from preparatory processes, whlich include the products of
the pmrocesse of grading, sorting, dusting, picking, carding, garnet-
ting, carbonizing, and scouring; it is provided, however, that manu-
facturers of wool text~iles operating under another Code of Fair
Competition, who buy direct for their owcn purposes and not for re-
sale, shall be governed as to such share of their business as is in-
cluded within t.he a.bove definition of wool trade by the provisions of
such other code and shall be excluded from all the provisions of this
Code except such provisions relating to fair trade practices as may
subsequently be mutually agreed upon by the National W~ool Trade
Association and the National Association of W'ool Manufacturers and
approved by the Administrator.
2. The term wool as used herein shall include wool and the
hair of the angora goat, cashmere goat, alpaca and like animals.
3. The term employee as used herein includes anyone engaged
in the trade in any,$ capacity receiving compensation for his serv-
ices, irrespective ofthe nature or method of payment of such
4. The term "employer as used herein includes anyone by whomz
any such emplo ee is compensated or employedl.
5. The term member of the trade as used herein includes any-
one engaged in the trade as above defined, either as an employer or
on his own behalf.
6. The terms President ", "'Act ", and "Administrator as used
herein shall mean respectively the President of the United States,
CODE OF FAIR COMlPETITION
Title I of the National Industrial Recovery Act, and th~e Admin-
istrator for Industrial Recovery.
7. Population for the purpose of this Code, shall be determined
by reference to the 1930 Federal Census.
Anncis~ III--EXEREPHON OF I1OWINS UNDER 2,500 POTorrno
1. Employers who do not employ more than five (5) persons and
whzo are -located in towns of less than 2,500 population (according to
the 1930 F'ederal Census) which are not in the immediate trade area
of a~ city of larger population shall not be included within the
provisions of Articles IV~ and V of this Code.
2. The 5 persons refer to any person working in the establish-
ment except a proprietor, provided such person works at least 24
hours per week.
3. A town of less thaan 2,500 population is, deemaed to be in the
immediate trade area of a larger city in either of the following
(a) If it is in the 1Metropolitan D~istrict of a city over 100,000
population as such Metropolitan Districts are defined in the Federal
Census of 1930, or
(b) If its boundaries touch the boundaries of a city or town with
a population over 2,500.
1. No employee shall be permitted to ~work in excess of 40 hours in
any one week except watchmen, outside salesmen, and buyers, and em-
ployees engaged in a managerial or executive- capacity who receive
more than $35 per week; provided, however, that clerical and office
employees may be permitted to work 40 hours per week averaged over
the six months, each year, beginning Miay 15, but in no event in excess
of 48 hours in any one week, and further provided that watchmen
shall not work more than 6 days per wppeek.
2. The maximum hours fixed in the foregoing section shall not
apply to any- employee engaged in emergency work necessary to
prevent or relieve transportationI congestion, but in any~such special
case at least one and one third times his normal rate shall be paid
for all hours in excess of the maximum prescribed herein. Emer-
gency hours worked shall be reported monthly to the Code Authority.
1. Nro employee shall be paid at le~ss than the rate of 37% cents per
2. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on, a time-rate, piece-wFork, or
3. WCaget differentials existing prior to June 16, 1933, shall be main-
tained for all employees receivingg more than the minimum herein
prescribed, notwithstandcingr that the'hours worked may3 be hereby
r~educed. ALll employers shall report to thie Code Authority within
one month after the effective date of this code such readjustment of
ARTICLE 'OI- GENERAL LABOR PRO\?STONS
1. N~o person under 16 years of age shall be employed in the trade.
In any Sjtate an employer shall be deemed to have complied ~i~th
this provision if he shall have on file a cer~tifica~te or permit duly
issued by the author~ityv in such State emlpow-ered to issue employment
or age certificates or permits, showing that the employee is of the
2. Emp'loyees shall have the right to organize and bargain collec-
tively through representatives of .t~heir own choosing, and shall be
free from the interference, re~str~aint., or coercion of employers of
labor, or their agents, in the desigrnation of such representatives or in
self-organization or in other concerted activities for the purpose ojf
collective bargaining or other mutual aid or protection.
3. No employee and no one seeking emnploymient shall be: required
as a condition of employment to join any company union or to re-
frain from joining, organizing? or assis~t~ing a labor organization of
his own choosing, and
4. Emnploy~ers shall comply within the maximlum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by thze President.
_.5. WCithin each State th-is Code shall not supersede~ any *laws of
suclh SCtate imposingr more sft~ringent requremellnt.s on empnloyers regu-
latinga the age of emnploi-ees, wages, hours of wniork, or health, fire or
general working conditions thanl under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to -defeat the purposes of the
7. Each employer shall post in conspicuous places full copies of
1. To further effectuate. the policies of the Act, a C~ode Authority
is herebyr set up to cooperate with the Administrator in the adminis-
tration of this Code. Such Code Authority shall consist of not less
than 5 or more than 8 members, 5 of whom shall be representatives
of the trade elected by a fair method of selection to be approved by
the Administrator, and 3 of whom without. vote may be appointed
by the Administrator to serve without expense to the trade. Such
agency may present to the Administrator recommendations based on
conditions in the trade as they miay develop which will tend to effee-
tuate the operation of the provisions of this Code and the policies of
the Act. Such recommendations, when approved by the Adminis-
trator, after such public hearing as he may deem necessary, shall have
the same force and effect as any other provisions of this Codde.
2. Such Code Authority shall cooperate w~ith thle Admninistrator
in making investigations as to the functioning and observance of
any provisions of this Code, at its own instance or on complaint by
any person affected, and shall report the same to the Administrator.
3. For the purpose of supplying the Administrator w~ith the requi-
site data as to the observance and effectiveness of this Code, and
as to whether the W~ool Trade is taking appropriate steps to enable
it to adjust its hours of labor and wages in accordance with the de-
scared policy of the Act, each employer shall furnish regular reports
as hereinafter provided. The Code Authority is hereby constituted
the agency to provide for the collection and receipt of such reports
and for the forwarding of the compiled results of such reports to
th~e A~dministrator, and to provide for the holding of such reports
themselves in confidence. Sch reports shall be in such form, shall
be furnished at such intervals, and shall contain such information
relative~ to thze purposes of this Code as shall be prescribed by the
Administrator or by the Code Authority with the approval of the
Administrator; including particularly information with respect to
employment, hours, pages, and wage-rates, and with respect to stocks
on hand of wool and of the other comrmodities specified in Article II,
Section 1, hereof.
4. In addition. to the information required to be submitted to the
Code Authority, there~ shall be furnished to Government agencies
such statistical information as the Administrat~or me y deem necessary
for the purposes recited in Section 3 (a.) of the Act.
5. Eac~h trade or industrial association directly or indirectly par-
ticipalting in the selections or activities of the Colde Authority shall:
(1) Impose no equitable restrictions on membership, and (12) sub-
mit to the rAdmimistrator true copies of its articles of association,
bylaws, regulations, and anly amendments when made thereto, to-
gether within such other information as to membership, organization,
and activities as the ACdministrator may deein necessary to effectuate
the purposes of the Acet.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsectionl (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 and specifically, but without limita-
tion, to the right of the President to cancel or modify his approval
of thiis Code or any conditions imposed by him upon his approval
2. Such of the provisions of this Code as are not required to be
included therein by th~e ~Act may, with the approval of the Adminis-
trator, be modified or eliminated in such manner as may be indicated
by the needs of the public, by changes in circumstances, or by ex-
perience; all the provisions of this Code, unless so modified or elimin-
nated,, shall remain in e~fftect until the expiration date of Title I of
No provisions of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICI.E --FAIR TRADE PRACTICES
Within 60 dayz\s after the effect~ive date of this Code, the C'ode Au-
thority, after consulhation with the trade, shall submit to the Ad-
ministrator recommendations for the adloption of fair trade prac-
tices. and such recommendations shall, upon the approval by the
Administrator, become effective as part of this Code.
ARTICLE XI--EFFECTIVE DA-TE
This Code shall become effective on the second Mlonday after date.
Approved C'ode No. 213.
Registry No. 282-1.