UNIVERSITY OF FLORIDA
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Registry No. 299--3A
NATIONAL RECOVERY ADMINISTRATION
C ODE OF FAI R C OMPE TITI ON
AS APPROVED ON APRIL 19, 1934
WE DO OUR PARTY
Uf. !~ ''';'! i"
GOVERNMENT PRINTING OFFICE
III IIIII11111 ll IIII l l l111 IIIIllll111ll
This publication is for sale by the Superintendent of Documenits, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMr~ERCE
Atlanta, Ga.: 504 Post Office Burilding.
Birmingham, Ala.: 2.57 F~ederal Building.
Boston, M~ass.: 1801 Custombouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: S~ute 1706, 201 North H ells S~treet.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Uuilding.
Indianapolis, Ind.: Chamber of Commerce Bulilding.
Jacksonville, Fla.: Chamber of Commerce Building.
liansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles,' Calif.: 1163 South Broadway.
Louisville, Kiy.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
Mlinneapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
New Y'ork, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Buildin?.
Pittsburgh, Pa.: Chamber of Commerce Building
Portland, Oreg.: 215 New Post Office Building.
St. Louis, M~o.: 506 Olive Street.
SSan Francisco, Calif.:: 310 Custombouse.
i Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 395
CODE OF FAIR COlMPETITION
FOR THE "
As Approved on April 19, 1934
COD[E ~F 1.AIR COMPETITION FOR THCE ABDDING: INDUSTRY
AnI appllienatio~lIn hing been duly made pursuant to anld in full
comlplianlce withl the pr~ovisions of Title I: of the National Industrial
Recovery3 Ac~t, approved Jun~e 16, 113:3, for appr~oval of a Code of
F'air (Completitionl for the W~adlding Industry, and hearings having
been~ duly heldl thereon andl the anlnexed report on said Code, con-
takinil findlings withl r~epect. ther~eto, having beenl made an~d directed
to the Pr~esidlent:
NOW~, THEREFORE, onl behanlf of the President of the United
States, I. Hught S. Joh~nsonl, Admi-inistrator for Industrial Recovery,
pu~rsua~nt to nulthlority vecstedl inl mle by Executivre Orders of the
President. inlcludling Executive Ordier No. 6543-;A, dated December
;30. 1933.: and otherwise; do herebyv incorporate by reference said
annlexedl report and dlo find that7 said Code complies in all respects
with th~e pertinent provisions 7ndl will promote the policy and pur-
poses of saidl Title of said A9ct; andi do hereby order that said Code
of Fair C'omnptition b~e anl it is her~eby approved.
HUGH S. JoRNsoN,
A~dm~inii tratolf/ r for Industrial Recovery.
Approval recommended :
WV. A. HARRIMAN,
A ctinrg Div~isionl Adm~~in istraor.
A ri~~l 19C, 1934.
REPORT TO THE PRESIDENT
The W~thite House.
SIR: This is a report oh the Hearing on the Code of F~air Com-
npetit~ion for thce Waddring Industry, conducted in WVashington, D.C'.,
on January 30, 1934.
In accordarnea with the customary procedure every person who
filed a request for appearance w~as freely heard in public, andi all
statutory and regulatory requirements were complied with.
The Code which is attached, was presented by duly qualified and
authorized representatives of the Industry, claiming to represent 95
per cent of t~he capacity of the Industr~y.
GENERAL CHARACTERISTICS OF THIE INDUSTRY
The manufacture of wadding includes the processing of cotton
or other fibre on cards or garnetts, producing a layer of felt sized
on one or both sides, and in some cases, having a sheet of paperi or
cloth applied to one or both sides of th~e felt. Its principal ulses are
for automobile uph~olster~ing, the ma~nufac~ture of clothing pads or
padldinga. quilted products, air or liquid filtering and other uses.
Th~ere~ are hie manufacturers in this Ind~ustry, while three of thiis
numlber comprise 95 per cent of the investment and the p~c~kage
andl dollar sales of the Industry. These three mannufact~urers also
comipose thle membership of the Association which w;as organized~
during the WTorldl War to cooperate with~ the Administration lur-
Ing that period. The Industry represents a total inv'estmeint of
This Indlustry is subject to dlecidled seasonal variations due to th~e
demands of the two principal outlets, namely, the clothling, fu~r-
rier, andt kindred Inldusitries, and the Automobile Indusltry. Un-
fo~tuinately, the products cannot be eco-nomica~lly or, conv!\eniently
stored in anticipation of the needs for those produces.
In asse~ntingc to thiis CLodle, this Indurstry reduces its work week to
an average of 40 hours from that of 51 hourrs prevailingT during the
year 1929, while the average miinimnum wage rate per hour pIaid
to employeesi since July 1933 hans been r~aised to 481,S p~er hour froml
399~ per hour, which was the average mninimnum wage r~ate paid
employees in 1B20.
Dulringr 1020, the total number of known mnen emnployed by memn-
bers of the Inidustry was 360, while dur~inga the ylear 1933, thie total
known number o-f mnen employed by members of the As ociation
in the Indlustry, averagedr 425, although thle volum~e of business dlone
during 1932 and 193:3 was 5851~ less than t~he~ volume done inl 19219.
PROV'ISIONS~c OF THE CODE
The labor provisions of this Code are similar in many ways to
those of the C~ode of Fair Com~petition for the Bedding Industry,
because of the fact that mnany of the manufacturers of wadding are
also manufacturers of products which go into the manufacture of
The minimum wage in the northernI section of the U~nited States is
321.**, per h~our while the mlinimum wage in the southern section. is
304 per houir.
Provisions relative to maximuml hours call for a workr week of 40
hours with a mn ximlum of 48 hours for 8 weeks during any 6 months
period, as a peakr period is necessary3 to the Industry in view of the
seasonal demandt as her~einbefore outlined.
Because of thle fewT mnlrrufacturers in the Industry, and because of
thle limited field for the outlet, of the products, this Industry has
felt it unnecessary to submit but one Trrade Practice. This Trade
Practice prohibits the ulse of second hand material, which has been
detrimnental to this and~ similar Industrieis for many years.
Th~e Deputyr Administrator in 'his final report to me on. said C(,de
hav1\ing found as h~erein set forth and on the basis of all thne pro-
ceedingss in this mantter';
I findl that :
(a) Said1 Code is wel l designed to plromolte the policies and pur-
poses of Title I of the Nati~onal Industrial Recovery Alct, including
remlovanl of obstructions t.ol the free flow of inters.ctate and foreign
commerce ce whichl tend to diminish the amount ther1eof and will pro-
vide for thle general welfare by promoting the organization of indus-
try~ for t.hle purpose of cooperative action among the trade groups, by
inducing and mainitainingr united( action of labor and m1angemen
ulnder ndequatet governmlental sanctions and supervision, by eliminat-
ing unfair comp~et~titive practices, by promoting thze fullest possible
utiizntio~n of the present p~roducrtive enp~c~ity of indlustries,~ by avoid-
ing undue r~estriction of production (except as may be ttemporarI~nily
required)j, by incretasing~ the consumption of industrial and agfricul-
t~ural products through increasing purchasing power, by reducing
a ndl relievinga unemnploymIenlt, by :impiro~v ing~ standards of- labor, a nd
by otherwise rehabilitatinga industry.
(b) Said Indlustry norma'lly emplloys not more than 50,000 em-
ployees; and is nrt. classified by me as a major indus~try3.
(c) The Code as ap-proved complies in all respects with the perti-
nent provisions of aid Title of said Act, including without limita-
tioni Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof ; and that the applicant associa-
tion is an industrial association truly representative of the afore-~nid~
Industryy; and that said association imposes no inequitable restrictions
oni admiission to membership therein.
(d) The Code is not dlesigned to and will not permit monopolies
o~r monopolistic practices.
(e) The Ciode is not designed to and will not eliminate 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 approval of said
For these reasons, the Code has been approved.
HUou S. JoBNSON,
ALrnu, 19, 1934.
CODE OF~ FAIR COMIPETITIONPI FOR TH-E ADlDI)NGS
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following prov\isiolns are established as a Code
of Fasir competition for the VI1CIIC Wadd ~ing Inustr and shall be the
standard of fair competition for this industryv anld shall be binding
upon every member thereof.
1. The term "' Waddcing Industry or IndustryS as ulsed her~ein
means and includes the mannufactture of wadding. The term wcPad-
ding as used herein means a layer of felt (usuatlly cotton fibre)
carded on a card or garnlett, wh~lich layer is sized (glazed) on one
or both sides. WVaddinga shall also include the above material with
a sheet of paper or cloth applied to one or both sides and adhering
firmly to thle sizedl layer so as: to form a -unifiedl whole. Wadding
is generally put. up in thle form of bales or rolls, folds or sheets,
and sold for the following purposes: Clothing pads andt padding;
air or liquid filteringr; hospital use, quliltedl products, and similar
2. The term "Association ", as applied to the Industry means the
National Asrsociationl of Wadndting Maonufactuirers.
3. The terml Secr~etary' eansl the Secretary3 of such As. c-cia-
4. The termn mlemnbe of t~he Industry includes but withoullt
limitation, any indlividual, p~rtnershnip, association, corporationl, or
other form of enterprise engagred in the Ind(:ustry as above defined,
whether as an emplloyer or on hris o-wn behalf.
5. The term employeee as used herein includes anyone enlgagedl
in the above defined Industry in anly enpacity receiving comipensation
for his s~ervrices ir~respective o~f the nature or method of payment of
6. The terml emlploy~er as used herein inc~l~lues anyr one byr whomn
any such emlployee is comipensatedl or employed in this Indus1try.
7. Thle terms "' President. ", "'Act ", and "Adlminis;traftor ", as used
hlerein shell m~ean r~espe~ctivelyr, the Pr~esident of the U~nited States,
Title I of the National Industrial Recovery3 Act, and the Admiiinis-
trator for Industrial Recovery~.
ARTICLE III: HOURS
1. No employee shall be p~ermnitfted to work in exceess of forty (40)
hours per weeke except. that. for eight (8) wreekts during any six (6)
months' nperio employeesp may~ be npermitted to wonrkz for~lilty-igh (48)
hours per week. The for~egoing prov\irions shall niot apply to:
(8) Outside salesmen, or employees engaged in, emerg:enicy main-
tenance or emergency repair workI or persons emnployed in a m~an-
agerial, supervisory or executive capacity who earn not less thian
thirty-five ($35.00) per week.
(b) Firemen, engineers, cleaners, truck drivers and shipping
crews who may be permitted a ten per cent (10S%) tolerance over the
(c) Wratchmen who shall not be permitted to wor~k more than
fifty-six (56) hours a week.
1. No employee shall be paid at less than the rate of thirty-two
and one-half cents (324./26) per hour in the Northern Section of the
United Stat~es, nor thirty cents (304) per hour in the Southern
Section of the United States.
(a) The Southern Siection is defined as comprising North Caro-
lina, South Carolina, Florida, Georgia, Alabama, Tenniessee, M~issis-
sippi, Arkansas, Louisiana, Oklahoma, Texas, and Virginia; and
the Nor~thern Section is defined to include all other states in the
United States proper including the District of Columbia.
(b) Learners without previous experience in this Industry may
be employed at a minimum wage rate of eighty per cent (80%)
of the minimum wage rate prescribed by this Article provided that
the nperiod of leaningn shall be not more than thirty (30) days, and
provided further, that the number of such learners shall, at no timne,
exceed five per cent (5J%) of tihe total employees in any particular
plant in this IndusLtry;; provided further, that no employee may
serve miore than one learning period within this Industry.
2. Al persoIn whose earning calpacityr is limited because of age,
physical or mental handicap, or other infirmity, may be employed
on light work at a wnge below the minimum establishedl by this
Code, if the emp~loyer obtains from the State authority, designated
by the U.S. Department of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall be
stated in the certifiente. Such authority shall be guided by the
instructions of the U.S.j Department of Labor in issuing certificates
to such persons. Each employer shall file monthly with the Code
Authority a list of all such persons employed byv himn, showling thle
wages paid to, and the maximum hours of work for such employee.
3. This Airticle establishes minimum rates of pay, which shall
apply irrespective of whether an employee is actually compensated
on a timie-rate, piece-work, or other basis.
4. Rates of pay in excess of the minimum hereinbefore prescribed
shall be equitablyr adjusted within sixty (60) days in order to pre-
serve equitable differentials. All such adjustments made since June
1, 1933 shall be reported to the Code Authority.
AlRTICLE V-GENERAL LBeon PnovisIows
1. On and after the effective. date of this Code no employer shall
employ anyone under the age of sixteen (16) years, nor anyone under
eighteen (18) years of age at operations or occupations hazardous
in nature or dangerous to health. In any State any employer shall
be deemed to have complied withi this poiini esalhv
on file a certificate or permit duly issuedP by\s l th Auhority in such
State empowered to issue employment of age certificates or permits
showinga that. theP ep~loyee' is of theP reqruired age.
2. In compliance with Section 7 (a) of Title I of the Act:
(a) Employees shall hlave the rig-ht to organize and bargain col-
lectively through r~epresentatives ohf their own choosing, and shall
be free from the interference, r~est raint or coercion oef) employers
of labor, or their agents, in the designation of such rep~resentatives
or in self-org~anizationl or in ot~her concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
(b) No emplloy~ee and no one seekiing employment shall be requrir~ed
as a condition of employment to join any company union or to re-
framn from joining, orgaruzing, or assisting a labor orgammzation of
his owrn choosing, and
(c) Employer~s shall comlply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
3. Every emnploy~er shall provide for the safety and health of em-
play'ees during thle hours and at. the places of their employment.
Standlcards for safety and health shall be submitted by the Code
Authority to the Admlinistr~ator within six months after the effective
date of the Code.
4. No employer shall reclassify employees or duties of occupations
performnedl or engage in any other subterfuge for the purpose of
defeatinig thle p~urposes or provisions of the Act or of thiis Code.
5. Each employer shall post in conspicuous places full c~opies of?
Articles III, IV, and V of this Code and such other Articles and
irrnac~or~dance with such regulations as are r~equir~ed by thei A~dminis-
1. To further effectuate the policies of the Act, a Code Authority
representing said Indlustry is hiereby osiue ocoeaewt
the Adlminist rator in the adlministraionfti:tCoonof 'thi Code.
(a) The Codert Au~thority shall consist of four (4) members, three
(3) mnembers to be elected by anld from the members of the Associa-
tion, andl one (1) to be elected, by and fr~om the nonmembers. The
method of election shiall be approved by the Admninistr~ator.
(b) Thle Administ~rator may appoint one (1) mlember without vote
or expense to the I~ndustryS to represent the Admninistr~ator on the
(c) The Code Authority shall be elected wicithin twenty (20) days
after the approval of this Code.
(d) If the representative of the nonmlemb~er group to the Code
Authority is nlot elected within 30 days after the app~roval of the
Code, the Board~ of Directors of the Associatio~n may elect a, mem~lber
to t~he Code Authoritly to fill that place, subject to the. approval~ of
th e Ad m in ist r~ator.
2. Each trade or industrial association directly or indirectly par-
t~icipating in the selection or activities of t~he Code Authorityv shall:
(1) Impose no inequitable restrictions on membership, and (2) sub-
mit to the Admninistr~ator true copies of its articles of association
by-laws, regulations, and any amendments when made thereto, to-
gethler with such other information as to membership, organization,
andl activities as thle Administrator may deem necessary to effectuate
the purposes of the Act..
3. In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with the
provisions of the Act, the Administrator may prescribe such hearings
as he mnay deem proper; and thereafter if he shall find that the Code
Authority is not truly representative, or does nlot in other respects
comply with the provisions of the Act, mnay require an appropriate
modification in the method of selection of t~he Code Authiority.
4. Members of the Industry shall be entitled to participate in
andl share the benefits of the activities of the Code Authority anid t~o
participate in the selection of the members thereof as p~rovidled in
Section I (a) of this Article by assenting to and comiplying writh the
requirements of this Code and sustaining their reasonable share of
the cost and expenses of its administration. Such reasonable srhare
of the expenses of administration shall be determiined by the Code
Authority, subject. to approval by t~he Administrator, on the basis
of volumer of business andtl/or suich other factors as may be dleemed
5. Pow~ers~ a~nd Dutieis of the C'ode Aulthority.--The Codle Aut~hor-
ity shall ha~ve the follow~ing further powers andl duties:
(a) To insure the execution of the provisions of this Codle and
to provide, subject to rules and r~egulations established by the Ad-
miinistr~ator, for the compliance of the Industry with t~he provisions
of the Act; Provided, however, that, this shall not be construed to
deprive duly authorized governmental agencies of their powers to
enforce the provisions of this Codle or of the Act.
(b) To cooperate with the Administrator in mIakingv investigations
as to the functioning anid observance of anly provisions of this Code
at its own instance or on com~plaint o'f any person affected and shall
report the samne to the Administrator.
(c) To make r~ecommIiendat ions to the Admin inist rator for t he coor-
dination of the administration of this Code with suchi other codes,
if3 n, as may be r~elatedl to the Industry\.
()Subject to app~rov'al of the Admiinistrator, to assecis uipon
members of th~e Indlustry~ an equitable andl propor~tionate sha~re of
th~e reasonable cost andl expenses of maint~ainingr the Code and the
activitiesi of the Ciode Authority, which amount shall be paid by
each member of this Indlustry.
()To obtain from members of thie Indulstry such information
reports as are required for the administration of th~e Code and
in addition to information required to be submittedt to anly Code
Authority,, all or any of the persons subject to this Code shall furnish
such statistiedl information as the Administrator mlay deem neces-
sury for t~he purpose recited in Section 3 (a) of the Act to such
Federal and State agencies as the Administrator may designate;
nor shall anything in any Code relieve any person of existing
obligations to furnish reports to government agencies. No indi-
vidual reports shall be disclosed t~o anly other member of the Industry
or any other party except to such governmental agencies as may be
directed by the President.
(f) To present to the Admninistr~ator froml time to time recom-
mendations for modification of this Code, based on conditions in
the Industryv as they mlay develop which will tend to effec~tuate the
operation of the provisions of this Code.
(g) To cooperate w~ith thle Admlinist~rator in regullat~ingr the use
of any National Recovery Administration Code Ins~ignin solely by
those members of the Industry who are complying: with this Code.
6. A~ny members of the Industry shall have the right to appeal to
the Administrator, under such rules rand regullation~s as h may
prescribe, in respect to any rule, regulations, or other course of
action, issued or taken by the Code Authority.
7. N~ot~hing contained in this Code shall constitute the members
of the Code Authority or members of the Association participating
in the activities of the Code Authorit partners for any p!u rpose.
Nor shall any member of the C'ode Athority or mnember1s of the
Association participating in the activities of th~e Code Authority be
liable in any manner to anyone for anyT act of any other miemnber,
officer, agent., or employee of the Code Authorityr hereinbefore3
mentioned. Nor sh~all anyl! member of the Code Authority exercising
reasonable diligence in the c-onduct of his duties hlereunder, be
liable to anyone for anyv action or omnission1 to act under this Code,
except for his owrn willful mnis-feasance or nonfeasance.
8. If the Admlinistratc r -hall determine that any action of a, code
author~ity or any agency thereof may be unfair or unjust or co~ntr~ary
to thle public inlterest, ther Admninistr'ator may require that such action
be suspended to afford an opportunity. for investigation of the merits
of sulch actionI an~d further consideration by such code authority or
agency pending final aCtfionl whlich shall not be effective unless the
Administr~atorl approves or ulnless he shall fail to d~isapprove after
t.hirtyr (30)! days' notice to him of intention to proceed with such
action in its originally or modified form.
ARTICLE V11- UNr~FAIR TRADE PRACTICES
1. The following practice constitutes an unfair method of compe-
tition for members of the W'adding Industry and is prohibited:
(a) Th~e use of second-hand or previously used cotton in the m~anu-
fac~tur oI~P f Wddlng.r Pr~eviously used cotton is defined to mean anly
cotton wFhich has been mnun~factur~ed and used for the purpose for
which it was manufactured or in the manufacture of anyT finished
product which hras been used by a co~nsumer.l This provision shall
not prohibit the use of the by-products produced in the manufacture
of new fabric nor material r~eclaimedl from new fabric, and it shall.
not prohibit the use of burlap, manchester or jute bagging, but it does
prohibit the ulse of second-hand material such as might be reclaimed
fromt old comforters~, mattr~esses, bedding: of any kind or aultomlobile
upholstery or upholstery furniture, clothTinga or the like.
1. This Code and all the provisions thnereo~f are exprecssly made
subject to thez right of the Pretsident, in accord~ance~e with the pro-
visions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to tim~e to cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said
Act andi srpecifically, but without limitation to the right of the Presi-
dent to cancel or modify his app~ovlal of this Code or any conditions
imposed by him up>on his approval thereof.
2. This Code, except as to pr~ovisions required by the Act, may 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 hie shall specify, and to become effective
on approval of the Adlministrator..
No provision in this Codle shall supersede any State or Federal
law~ which imposes on emiployers mior~e stringent requirements than
ar~e imnposed by this C'ode.
AH ITICLE X--}\f O NOPOLIs, E Te.
No provision of this Code shall be so appliedl as to permit
monopolies or monopolistic practices, or to elimninute, oppr~ess, or
discriminate against smalll enterprises.
ATIicLE XI-SPECIAL AGRI~EnEMETS
1Reasonable notice of the submisjsionl of any~ agreement authlorized
to be submlitted to the ]President by virtue andi undler authority of
Section. 4 (a) o>f the Aciit shall be given to the Code Author~ity~ of this
Industry by any member of the Industry who proposes to make
ArlTICLE XII--EFFECTIV'E DATE
This Code shall become effective on the second 11Ionday after
its ap~proval and shall continue in effect during the period of the
National Industrial Recovery- Act.
Appro\ed Gode No. 395.
Registry No. 2g9-34.