NATIONAL RECOVERY ADMINISTRATION
C ODE OF FAIR CO MPET I TION
WIPING CLOTH INDUSTRY
For sale by the Superintendent of Documents, Washington, D.C. I Price 5 cents
Registry No. 299--1-21
AS APPROVED ON FEBRUARY 17,1934
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
UNIVERSITY OF FLORIDA
3 1262 08486 7679
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washnington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Seat tie, W~ash.z 809 Federal Office Building.
Approved Code No. 298
COD)E OF FAIR COMPETITION\
WI[PING~ CLOTH INDUSTRY
AS APPROVED) ON FEBRUARY 17, 1934
APPROVING CODE OF FAIR COMPETITION FOR THIE `VTIPING CLOTR
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Inldustrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition, for the Wiping Cloth. Industry, and Ihearigs
having been duly held thereon and the annexed report on said Code,
containig fidings with respect thiereto, having been made and
directed to the P~resident;
NOW, TH~EREtliFOR1E, on behalf of the President of thne United
States, I, Hugh S. Johnson, Administrator for Industrial Recoverly,
pursuant to authority vested in, me by Executive Orders of t~he Presi-
dent, including Ex~cutive Order ~No. 6543-A, dated D~ecember 30,
1933, and otherwise; do heeby incorporate by reference said
annexed report and do find that said Code complies in all respects
withr the pertinent provisions and will promote the policy and pur-
po~sesof said Title of said Act; and do hereby order that said Code
of Fiiair Competition be and it is hereby approved, provided that the
Code ~Authority shall appoint a Comlmittee, which shall make a
study of milnimum wages in thze Industry lookiig to~waird measures
which. will enable an increase in such minima, and shall report such
study, with recom mend nations, to the .Ad minist ra tor prior to Decemnber
HUan S. JOHNSON,
Admn i7 strt~lO or jbr ndustrial Recovery.
A. D. WHIITESIDE,
February 17, 1934.
REPORTS T`O THE PRESIDENT
The White Hfouse.
SmR: TPhe Hearing on the Code of F~air Competition for the Wiping
Cloth Industry- was held at the Mayflower H~otel, W~ashington, D. C.,
on December 11, 1933. The Code, which is attached, was presented
by duly qualified and authorized representatives of the industry,
complying with statutory requirements, said to represent 70%r in
number and 80%r in volume of the industry.
In accordance with the customary procedure, everyone present who
had filed a request for an appearance was freely heard in public an~d
all statutory- and regulatory requirements were complied with.
T'he provisions of this Code haver been approved by the Labor Ad-
visory Board, the Ilndustrial Adv~isory Board, the RCesearch. and Plan-
ning Division, and the Legal Division. The Consum~ers Advisory
Board approved all provisions of the Code except the one requiring:
the use of a staRndard form of contract by all members of the industry.
In 1929 the industry did a twelve (12) million dollars volume of
business; in 1933 this volume had declined about 40%r to around seven
(7) million dollars. The industry employed four thousand (4000) full-
time workers in 1929 and in 1933 the number had declined to about
twenty-five hundred (2500). The employment is divided about
equally between men and womenz. The operations performed by
men are distinctly different in nature and degree of skill from those
performed by women. In 1929 the average, minimum wage for men
was thirty-five cents (35$) per hour and for women twenty cents (20 )
per hour; on July 1, 1933, this had decreased to twenty-five cents
(25 ) for men and fifteen cents (15 ~) for women, and in some localities
to as lowv as nine cents (94) per hour for women. In 1929 the average
number of hours worked per week was sixty (60), and on July 1, 1933,
it wvas fifty-five (55). The hours provided in this Code show a 27%
reduction from. those in effect on July- 1, 1933, and should increase
employment accordingly. T~he Code provisions on wages will result
in a substantial increase in pay over the wages in effect on July 1, 1933.
PROVISIONS OF` THE CODE
The Code provides minimum wage rates of thzirty-two and one-half
cents (32Y2 ) per hour for men and twventy-seven and one-half cents
(27:/ ) for women inl the North, twenty-seven and one-hzalf cents
(27X ) per hour for me~n and twenty-two and one-half cents (f22%#) per
hour for women in the South. No office or clerical employee shall
be paid at a rate of less than fourteen dollars ($14) per wcleek in the
North or thirteen dollars ($13) per week in the South. Provision
is matde for maintenance of differentials in wages above the minimum.
Hours of workr are limited to forty (40) hours per week and eight
(8) per day with the following exceptions: trucks drivers and their
helpers mnay work fortly-eight (48) hours per week; electricians, fire-
men and tactory amachinlery repairmen may work forty-four (441)
hours per week; wcatchm~en maay work fifty-two (52) and fifty-six (56)
hour per week on alternate weeks or an average of fifty-four (54)
hours per weekr. Executives receiving thirty-five dollars ($35) or
more per weeki, outside salesmen and outside buyers are not limited in
hours. Employees engaged in emergency maintenance or emergency
repair work are not limited in hours but must be paid time and one-
tlurd for hours worked in excess of their normal maximum. No
employee is permitted to work more than six (6) days in any seven-day
Representation on the Code Authority is provided for all members
of the trade.
Trade practice provisions have been in corpora ted to eliminate
unfa~ir practices which have sprung up in the inldust~ry.
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 proceedings
in this mlatt~er;
I find that:
(a) Said Code is w5ell designed to promote the policies anld puroses
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 wil provide for the
general welfare by promoting the organization of industry for the
purpose~ of cooperative action among the trade groups, by inlducing
and maintaining united action of labor and matnagemnent under ade-
quate governmental sanctions and supervision, by eliminiatin~g unfair
competitive practice,. by promoting the fullest possible utilization of
the present production capacity of industries, by avoiding unrdue
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 improvmg standards of labor, and by ot~herwise
(b) Said trade inldustr~y normnall~y employs not more than 50,000
employees, and is not classified by me as a major industry.
(c) The Code as approveed complies in all respects with the perti-
nent provisions of said Title of said Act, including without limlitat~ion
Subsection (ta) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaid In-
dustry; and that said association imposes nlo inequitable restrictions
on admission to membership therein.
(d) The Code is nlot designed to and will not permit monopolies
or monopolistic practices.
(e;) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against theml.
(f) Those engaged in other steps of the economic, process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, this Code has been approved.
IIUGH S. JOHNSON,
FEBRUARY 17, ~1934.
CODE OF FAIIR COMPETITION FOR THIE WIPING CLOTH
To effectuate thie policies of Title I of the ~National Industrial
1Recovery Act, the following provisions are established as a Code3 of
Fiair Competition for the W7ipinag Cloth Industry, and shall be the
standard of fair competition for such industry and shall be binding
upon every member thereof.
1. TIhe term "Wiping Cloth Industry ", as used herein, means and
includes the larundering and/or sterilizing of textfile fablr~ics for con-
version into wiping cloths (a~nd the processing incidentall thereto),
and/or the sale of such wiping cloths.
2. The terml "employee" as used herein, means and includes any-
one engaged in thre Industry in anly capacity receiving compensation.
for his services, irrespective of the nature or method of payment of
such compensation, except a member of the Industry.
(a) The terms "outside salesman" and '"outside buyer", as used
heremn, mnean and include any employee wh~to is engaged exclusively
in, selling a~nd/or buying respectively outside the establishment of his
(b) The term "watchmen", as used herein, means and includes
those employees who are exclusively engaged in watching plants,
property-, and/or plant equipment.
(c) The phrase "~employees in a managerial capacity", as ulsed
hlerein, means and includes foremen and office managers.
(d) The term clerical and office employees ", as used herein,
means and includes any employee wvho is engaged in work of a
clerical, accounting, sales, or service character, in the office of a
member of the Industry.
3. The term~ "employer"', as used herein, means and includes any one
by whom any such employee is compensated or employed.
4. The termn memberr of the industryy, as used herein, mens anld
includes, but without limitation, any individual, partnlersh~ip, associa-
tion, corporation. or other form of enterprise, engaged in the industry,
either as an employer, or on his or its own behalf.
5. T~he terms "Presidenlt", "'Act"', and "Administrator", as used
hereinl, shaall mean, respectively, the Pr~esidientl of the United States,
Title I of the National Indust~rial Recovery Act, and the Adminis-
trator for Industrial Recoveiry.
16. The term "South", as used herein, means and includes the
States of Maryland, Virginia, North Carolina, South Car~olina,
Flor~ida, Gcor~gin, Alahamaln, Tennessee, K~entucky, M~ississippi, L~oui-
siana, Ar~kansas, MIissoulri, Oklahomaln, T~exas.
7. Th term "North"', as used herein, means and includes all of
the territory of thef continental United States exceept that portion
included under the term '"South".
1. N\;o employee, except as herein otherwise provided, shall be
permitted to wsork in excess of 40 hours in any one week or more than
8 hours inr any 24~-hour period; provided, however\, that office and cler-
ical emlployees shall be permitted to w~ork\ not to exceed 80 hours per
year in addition to the maximum herein above established; and
provided further, that such, additional hours shall be compensated
for at the rate of time and one-thid.
2. Tlhe maximum hours fixed in the foregoing section shall not
(a) Truckr drivers and their helpers, w-ho shall be permitted ~to work
not in excess of 48 hour in any one weetk.
(b) Employ~ees engaged exclusively as electricians, firemen, or
factoryr machinery repairmen, who' shall be permitted to w-ork not in
excess of 44 hours in any one we~ek.
(c) Engineers, who shall be permitted to w-ork not in excess of 48
hours in, any one wreek.
(d) ]Employees in an executive? or managerial capacity receiving
$35 or more per week.
(e) Out~side salesmren and outside buyers.
(f) W~atchmen, wvho shall be employed in pairs and shall not be
permitted to work more than 52 hours and 56 hours on alternate weePks,
or an average of 54 hours per week.
(g) Employees on emergency maintenancee or emergency repair
work involving breakldowns or protection of life or property, but in
any such~ special case at least time and one-t.hird, shall be paid for
hours worked in excess of the maximum hours herein provided.
3. `No emnployefe shall. be permlitted to wo<-rkl more than six days in
any seven-day period.
4. No employer shall knowingly permit, any employ-ee to work for
any time which w~hen totaled with that already performed with anot her
emnployer, or emlploy;ers, exceeds the maxmum permrittedl hlerein.
1. NJo employee, except as 'herein otherwise pr~ovidecd, shall be
paid at. less than the following wrage rates per hour:
In the North: 1\fale, $.32%e; Fe~male, $.27%.
In the. South: 1%fale, $.273%; Female, $.22%.
2. Njo offce or clerical employee shall be paid at less than2 the
following weekly rates: In the North, $14.00; In. the South, 813.00.
3. This Art~icle establishes a mlinimuml rate of pay, r~egar~dless olf
whether an employee is compensated on a time-rate, piecewrorkc, or
4. Female employees performing substantially the sam~e work~ as
male employees shall receive the. same rates of pay as male employees.
5. No member of the industry, by reason of the adoption of thiis
Code, shall reduce an employee's total weekly compensation (based on
the four week period prior to July 15, 1933) in excess of the minimums
herein provided, wrhethler based on an hourly, weekly or other rate,
notwithstanding the fact that the hours of work of such employee may
be reduced hereulnder.
There shall be! an equitable adjustment of all wages above minimum,
and to that end, wiithLin thirty days from~l the! effective date of this
Code, the Code Authority shall submit for the approval of the Admin-
istrator a proposal for adjustment in ar-ges above the minmumn.
Upon approvalT by the Administrator, after such hearing as he may
prescribe, such proposal shall become binding as a part of this Code.'
ARTICLE V--GENERAL LABOR Provisions
1. No person under 18 years of age shzall be employed in this
IndustryT. In any State an. employer shall be deemed to have com-
plied with this provision as to age if he shall have on file a certificate
or permit duly issued by the Auth~ority in such State empowered to
issue employment or age certificates or permits showing thaat thae
employee is of the required a~ge.
2. ]Emlployees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization, or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employ~menzt to join an~y company union or to refrain
from joining, organizing, or assisting a labor organization of his own
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay and other conditions of emzploym~ent approved
or prescribed by the President.
5. Every emnployger shaall provide for the safety and health of his
employees at the place and during the hours of their employment.
Standards for safety and health. shall be submitted by the Code
Authority to the Admninistrator within six months after the effective
date of this Code.
6. No provisions in this Code shall supersede any State or Federal
law whnichn imposes more stringent requirements on employers as to
age of employees, wvages, hours of work, or as to safety, health, sani-
tary or general working conditions than are imposed by this Code.
7. Employers shall not reclassify employees or duties of occupations
performed by employees, or engage in any other subterfuge, for the
purpose of defeating the provisions of the Act or of the Code.
(a) Each employer shall post in a conspicuous place of easy and
continuous access to employees, the articles dealing with hours, wages
and general labor provisions of this Code.
(b) The notice shall be printed in. English in type of at least 10
point, and at least three notices shall be posted in. any shops employing
more than 10 employees, and one in, any smaller shop.
(c) All changes in the provisions of these aforesaid articles shall be
posted within one week after such, changes hav9e been, incorporated in
r Seet paragraph 2 of order approving this Code.
To further effectuate. t~he policies of the Act, a Code Authority
is hereby constituted to administer this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of from eleven (11) to
thirteen (13) representatives of the industry, or such other number
as ma~y be approved from tue to time by the Administrator, to
be selected as hereinafter provided; and the Admlinistrator, in his
discretion, may appoint not more than three (3) additional me~m-
bers who shall be known as "administration members of thie W~iping
Cloth Industry Code .Authority ", without vote, to represent such
groups or governmental agencies as he may designate.
(b) E~leven (11) representatives of the Indlustry shall be selercted
by the Board of Directors of the Sanitary Institute of Amlerica.
(C) Two additional representatives of the industry may be ap-
gted by the Admrtinistrator or selected in a manner prescribed by
2. Duties and powers of Code Aut~hority.
The! Code Authority shall have the following powers, to the extent
permitted tby the Act.
(a) To adopt by-laws and rules and regulations for its procedure and
for the administration and enforcement of this Code.
(b) TIlo mnake investig t~ions as to the functioning and observance of
any provisions of this Code at its owpn. inlstance, or on complaint byT any
person affected, and to report the same to the Administrator.
(c) To require, from. time to tie, from each member of thIe Indus-
try, reports in such form and containing such information as the
Admisthraset or ma prescribe, inL order that he m~ay be kept informed
wit repec totheobservance of this Code. Except as otherwise
provided in. the Act, an reports filed in accordance with these pro-
visions shall bec confidential, and the data of one emlploy-er shall not be
revealed to any other employer.
(d) To present to the Adm~inistrator, from timle to time, recom-
mendations based onl conditions in the industry, as they mnay devs7elop,
which will tend to effectuate the operation of the provisions of this
Code. Such recommendations when approved by the! Administrator
shall have the same force and effect as the other provisions of this
(e) Within ninety (90) days of the effective date of this Code the
Code Authority shall submit recommendations prescribing standards
of laundering and sterilizing of wiping cloths, which, upon approval
of the Adlministrator, shall have, the same force and effect as the
ote rovisions of this Code.
(f) Wifthin ninety (90) days of the effective date of this Code the
Code Authority shall submit recommendations for a standard form,
of contract for the industry which, upon approval of the Admlinistrator,
shall have the same force and effect as the other provisions of this
(g) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for herein
and to pay such trade associations and ag~enes the costtheretyofi
provided that nothing herein shall relievethCoeA hriyfis
duties or responsibilities under thin Code, and that such trade asso-
ciationls and agencies shall at all times be subject to anad comply with
the provisions hereof.
(h) To make recommendations to the Administrator for t~he coordi-
nation of the administration of this Code wvith such other codes, if
any, as mray be related to the Industr~y.
3. Eachz trade association directly or indirectly participating in the
selections or activities of the Code Authority shall:
(a) Impose no inequitable restrictions on membership.
(b) Submit to the Administrator true copies of its articles of asso-
ciation, bylaws, regulations, and any amendments when made thereto,
together with, such other information as to membership, organrizationl,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
4. In order that the Code Authority shall at all times be truly
representative of the trade and in other respects comply with thae
provisions of the Act, the Administrator may provide such hearings
as he may deem proper and thereafter if he shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
5. Members of the Industry shall be entitled to participate in, and
share the benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by ascenting to and
complying with the requirements of this Code and sustaining their
reasonable share of the expenses of its administration. The reason-
able share of the expenses of administration. shall, be determined by
the Code Authority, subject to review by the Administrater, on thze
basis of volume of business anzd/or such other factors as may be
deemed equitable to be taken into consideration.
6. Inl addition to the information. required to be submitted to the
Code Authority, there shall be furnished to government agencies such
statistical information as the Administrator may deem. necessary for
the purpose recited in Section 3 (a) of the Act.
7. If the Administrator shall determine that any action of a 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 further consideration by such code authority or
agency pending final action, which shall not be effected unless the
Administrator approves or unless he shall fail to disapprove after 30
days' notice to him of intention to proceed with such action in its
original or modified form.2
ARTICLE: VII-TRADE: PRACTICES
Thie following practices constitute unfair methods of competition
for the members of the industry and are prohibited:
1. The allowance of a cash discount in. excess of 2%0, byT reason of
payment on or before the 10th of the month following date of invoice.
2. No mnemnber of the industry shall use advertising whetherr
printed, radio, display, or of any other nature) or other representation
which is inaccurate in any material particular or in' any way mis-
represent anly commodity includingn its use, trade-mark, grade, qual-
SSee, paragraph 2 of order approving this Code.
ity, quantity, origin, s~ize, material conitet, or preparation) or credit
terms, values, policies, services, or the nature or :form of the business
3. The sale, or offer for sale, of laundered and/or sterilized w~ipers
imported from a foreign country, unless all packages of such w~ipers
are legibly marked and invoices covering the same contain a, notice
stating the country of their origin, that the w~ipers are of imported
material, and that the have been laundered and/or sterilized in a
foreign country. The imported w~iper shall not be accompanied by
the affidavit of guaranty of the Sanitary Institute of Amerien, unless
it is actually laundered and/or sterilized within the~ continental limits
of the United States to conform to the standards of the Sanitary
Institute of America.
4. Th sale, or offer for sale, of w~ipers as st~erillizedl or Iullaunderd,
unless they are actually processed to conformn with thle standards pre-
scribed by the Code Authiority and approved by; the Administ runt.0r.
5. The defamation of competitors by falsely imputing to themn dis-
honorable conduct, inability to perform contracts, questionable credit
standing, or by other false represent~ationrs or by the false disparage-
ment of the grade or quality of their goods.
6. No member of the industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose of influlenc-
ing or rewarding the action of any employee, agent or representative
of another in relation to the business of the employer of such eml-
ployee, the principal of such agent or thze represented party, without
th2e knowledgae of such employer, principal or party. Commrcial
bribery provisions shall not be construed to prohibit free a~nd general
distribution of articles commonly used for advert~isingo except so far
as such articles are actually used for comlmerciall bribery as herein-
7i. WFithholding from, or inserting in, the invoice statements which
make the invoice a false record wholly or in part. Post~dating and/or
npredat~ing of invoices shall be considered falsi~fication1 of record.
8. The false marking or branding of any product of the industry
which has the tendency to mislead or deceive customers or prospec-
tive customers, whether as to the grade, quality, quantity, substance,
character, nature, origin, size, finish, or preparation of any product
of the industry, or otherwise.
9. The secret payment or allowance of rebates, refunds, commis-
sions, credits, or unearned discounts, whether in the form of m~oneyt~
or otherwise, or the secret extension to certain purchasers of special
services or privileges not extended to al purchasers on like termsY
10. Inducing the breach of an existing contract between a compIeti-
tor and his customer or source of supply,~ or interfering with or ob-
structing the performance of such contractual duties or services.
11. Aiding or abetting any person, firm, partnership, or corpor~a-
tion in any unfair practices in the WFiping Cloth Industry, directly
or by using any subterfuge or evasion. The principal or principals
of any member of the Industry shall be responsible for any violation
by an agent acting within the scope of his authority.
12. The shipment of goods on consignment, except that shipments
on consignment may be made solely to jobbers, m which case the
consignment period shall not exceed a period of four months, after
which period interest shall be charged at the rate of 6%0 per annum.
ARTICLE VIII nIODIFICAQTION
1. This Code and all the provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provisions
of subsection (b) of Sectionz 10 of the National Industrial Recovery
Act, from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act and spe-
cifically, but without limitations, to the right of the President t~o can-
cel or mrodify his approval of this Code or any conditions imposed by
him upon his approval thereof.
2. This Code, except as to provisions required by the Act, ma~y be
modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administrator
and such notice and hearing as he shall specify, and to become effective
on approval of the President.
ARTICLE IX-MONOPOLIES, ]ETC.
No provision of this Code shall be so applied as to permit mnonopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE X--EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 298.
Registry No. 299-1-21.