Registry No. 281--1-01
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For sale byr the Superintendent of Documents. Washington, D.C. - Price 5 cente
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIHR COMPETITION~
AS APPROVED ON DEC'EMBER .30, 1933
1. Exrecutive Order
23. Letter of Transmittal
GOVERNMENT PRINT ING OFFICE
WASHINGTON : 1934
UNIVERSITY OF FLORIDA
3 1262 08486 7950
This publication is for sale by the Superinltendent of Documents, Government
Printing Office, Washington, D.r., and by district ofilees of the Bureau of
BForeIgn andi Domerstic Commer~ce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlantan, Ga.: 5(H Posit ()fiCeC Buildinig.
Birmuinsrham, Ala.: 237 Federal Building.
Bo~stonl, Mass.e: 18)1 C~ustomhouse.
Buffail, N.Y.: Chiamber of Commerce Building.
Charlestoln, S.C.: Chan1ber of Commerce Building.
Chkiengo. Ill.: Suite 17i06, 201 North Wells Street.
Clevelanld. Ohio: Chamber of Commerce.
Dullas, Tex.: Chalmbe~r of Commerce Building.
Detroit, M~ichl.: 2213 First National Bank Building.
Houston, Tex.: C'hamber of Commerce Building.
Indlianuplolise. Ind.: Chamber of Commerce Building.
Jacksonv~ille, Fla.: Chamber of Commerce Building.
Kansas Ciry, Mo~.: 10)28 Baltimore Avenue.
Los Ange~lesu Calif.: 1163 South Broadway.
Louisville, Ky.: 4108 Fed~eral Building.
MIemphis. Te~nn.: "22 Federal Building.
Mlinneapo ~is, Mlinn.: Y13 Fede~ral Building.
New- Orleans. La.: Room11 ~22-A. CustomouZIOse.
New\ York, V.Y. : 7i34 Cus~tombouse.
Norfolk;. \Va.: 406 East Plumec Street.
Philadelp~hia. Pa.: 933 Conlunercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Por~tland, Oreg.: 215 New Post Office Building.
St. Louis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, W~ash.: 80)9 Federal Building.
Approved Code No. 188
CODE- OFi FAIR COMPETITION
As Appr~oved on December 30, 1933
A~n alpplica~tion having been duly made, pursuun't to and in full
comnpliance w nith~ the prov,\i ionls of Title I of the National Indusltr~ial
Recovery? Act, app~r~ov~ed June 16, 1933, for my approval of a Codce
of Fa~ir competitionn for the Velvet Industr~y, and herarings having
beenl heldl thereton an~d thle Admlinist;tcrtr having renrdered his repoort
c~ontainling a n analys.iis of the saRid Code of Fair Comlpetitionl together;
wTithl hlis rtcommendat-lll~tions?1 and findings w~rith respec-r.t~ threreto, and
the Admlinist rator hav\ing found that the said Code of Fair Comipeti-
tionl complies in all respects wiith the pertinent p~rovisions~ of Title I
of said Act and thlat the I~~reqirementsl. of Clnuses (1) and (2) of
subsec~tion (a) of Sje~fctio 3 of the said Act have been met:
NOW\. TH-EREFORE, I, F'ranklin D. Roosevelt, President of the
United States. pursu~antt to the aulthor~ity vestedl in me byv Title I of
the SNtiolnal Industl~ril Recovery Act, allpprovet d June 1'6, 1933, and
othlerwise, dlo adlopt andl approve the report, I'~~-lll~lrecnnfatonls and
findings of thle Administratorl and do order that the said Code~of
Fair Completiti inr be andr it is her~eby approved.
"RAtLNKrL;IN D. ROOSEVELT'.
Heca(: S. JO~HNSON,
Deccem,~be~r JO:, 1983'.
The RESIENTDECEMBER 21, 1933.
The Wh'ite Hourse.
SIR: This is a report onl the hearing on the Code of Fair Competi-
tion for t.he Velvet. Indlustr~y, held in the Auditorium of the Depart-
ment of Commlerce Building. on November 8, 1933. The Code which
is attached was presented byS duly qualified and authorized repre-
sentaltives of the industry! complying with statutory requirements,
said to represent. over 90 percent by volumne of production and 12
ouit of 13 concerns in the industry.
In accordance writh the customary procedure every person whlo
had filed a request, for an appearance was freely heard in public, and
all statuitor~y andl regullatory requirements were comnpliedwth
The industry comiprisies 14 concerns owning over 3,000 ltooms and
having an investment in 1933 of $;13,555,375. In 1929 the industry
provided2 emp~loyment for 4,653 full-timle workers. This figure has
declined to 2,863 workers in 1933. The aggregate annual sales have
fallen fromt 9.'703,192 yardls in 1929 to 3,306,458 yards for the first
6 months; of 1933.
PROV'ISIONrS OF TH~IE C'ODE
The Code provides for a mninimuum wrage of $137.00 a week. Learn-
ers, not. exuceedinga 51;r of the total number of employees, may be paid
not less than 80C% of the minnimiumi wage during the first 6 months
of their employment. Hours are limited to 40 hours for anyI one
week andi 8 hours in any 24-hour period, with the following excep-
tions: watchmen are p~ermiitted to work 56 hours p~er weekr: em-
ployees- in a supervisory capacity receiving $;35.00 per week or more,
and outside salesmeni are not limited as to hours; employees on
emergency repair work are excepted but are to be paid time and
one third for hours~ worked in excess of 40 hours per week; office
employees are permuittedd to work 48 hours in any one w~eek pro-
vlided thiey do not work more than 40 hours per week averaged over
a period of 3 months. Operations are limited to 2 shifts of 40
hours each. ~Hour~s of work hiave been reduced fromn 48 to 40, and
employment is thereby increased in the same pr~opor~tion.
Wage rat.es for piece and/'or hourly workers are to be at least
20%r in elxcess of the average rates prevailing on June 26, 1933.
Exisitin~ differ~entials between wages above the mlinimlumn are mnam-
t~ained and no emlployee is to receive less compensation for the
40~-hourl week than was r~eceived before June 26, 1933.
Reprecsentationi on the Code Authority is provided for all members
of thne industry.
There are no hlighlly restrictive provisions in the Code itself. Pro-
vision is mad~e for r~eco~nulclnendatin; by thec Code Auth-or~ity to the
Administrator for licensing all new~ inst~lilationsl- of p~r~oductive mia-
chinery~. N~o suchl proision, however, wTill b~eomie effective without
fur'therl appr~cvall of the Adiministrator.
Th~ere' was somet qulestionl as to whether or noct the! Yelvet Industry
is entitledl to opelrate unlder a cpar~ate Code. After henc~ing the
evidence andt thle adv\iee of the Indlustrial Advrisor it waus decided~
to permit. thle inldusitry\ to operate utnder this Code for ar trial period
of 6 months. At thle endc of this time thle question of a Code for
this industry will b~e reconsirered.l
Members utofl~ n-thindustry wishled to include thle dyeing and f~ini h-
ingopraios wthn heprov\isions of this Codec and pro~tes~te
agrainstj op~elrting~ unde.'r theR Rayovn and Silk Dyei~nr andlr Printing~
Industrv Code. This protest was based Inrge tly on the restrictions~
on the lunube r of hours whlich productive macineryiil~'? ma~y be op-
eratedl underl the Dy\eing~ and PrintingS Code. Thlis objecition wais
over~comer by al ,-ing the provisions of the Dyeing and Pr'intfing Code
to perm'~it memoorclS of the Y~elvet Indusltry3 to operate produc~ti\ e
machinery extran hours curingi! peak ;easnsiil.i;
I findc th~at.:
(a) This Code compn~lie~s in all. respects with the p~ertinent p~rovi-
sions of Title I of the National Tndusitrialt Recoveryc Act, incllluingo
without li tuit n ion Sub1:-eet in (a) of Section 7 and Subsc~lt iln (b)
of Section 10 thereof, andt further provides for the repo~crting of any
statistical inlform~-ati onl desired by the Ai~dministrator.
(b) The V~elv~et Manulllflc~turer s Assne;;,~ intion1 is truly representative
of the Velv-et Industry. TPhe Articles of Association provide no
ineqluitable ro.-tr~ictions to membershil;lp.
(c) The Corle is nlot dersigned~ to promote Imonopolies or to elimni-
note or oppress~ small enterpriset; andl will not operate to discrIiminate
against theml and will te-ndl to fc~trtualte the policy of Title I of the
National Industrial 1RecoveryT Act.
(d) The w\Tages xpecifiedl in this Codre aIre substantiafj~ lly higher thann
those pr~evailing prior to June 16, 1933.
(e) The tradelt practices have the support of the members of the
industry and will act to inc~rease uniformity of practice.
I rccc!llelcnnn that t~he Cod'e be approved.
HCon S. JoINSON,
To effectuate the policies of Title I of the National Industrial
Recov~ery Act the following provisions are established as a Code of
Fair Competition for the Velvet Industry, and shall be the standard
of fair competition for such industry and shall be binding upon every
1. The termIi Velvet Industry "? as used her~ein is defined to mean
thle production and distribution of velvet by employers operating
veplvet~ looms, excluding such processes as ar~e covered by the provi-
sionn of the Rayonn aInd Silk Deng~o and Printing Industry Code.
2. The term \velv~et as used inl this Code is d~efinedl to miean a
pile fabric w~oveni in top and bottom pieces connlected by pile warp
thr~eads auitom~atically cut on the loomn to cr'eate the pile, including
miillineryl, corset, box, and ar~tificiall flowecr p~lush but excluding all
others plushess and excluiding pile fabrics governed by the pr~ovisions
of the Upholster~y and Drapery3 Textile Indtustry3 Codec.
3. T'he termll memlber of the Industry "` includes anyone engaged
in thle Industry, either as an emnployrer or on hris own behalf.
4. The term "L emiloy~ee "' is dlefinedr to mneal anyone r~ece~iving comu-
pen~sation for his services in salid industry.
5i. The term "L employer )" as used her~ein is dlefined to mleanl anyone
by wrhom any sulch employee is compensated or empIloyred.
6. The term Productive machinery as uised herein is de~ned
to mea~n relet, loomrs.
7. The term. "Asso~ciation "` i~ defined to -mnean the Y'elvet. Manu-
fa ct u rers A ssoc i ati on.
8. The terms "' Presidenlt. ". "Act ". and ''Administrator as used
hierein shall mean respectively thle President of the Uniited States,
the National Indlustr~ial Recovery Act., and the Administrator for
9. Thle term Code Aulthor~ity is dlefinled to mnean thle Commiittee
described in Article VI.
ARTCILE I~II-Ho~Rns or LAHOR
1. N~o emiployee shall be p~ermittedl to work in excess of 40 hours
in an.\ one w~eek; or 8 hours ini anyg 24-houri period with thle following
(a) Emp-loyees earnings $35.00 per week or over and servings as
executives, superintendents, foremen, supervisory staff, advisory
engfineers, or techmelians, andl outside salesmen.
CODE OF FAIR COMPETITION
(b) W~atchmen. who may be permitted to w-ork; not in excess of
56 hours in any one week.
(c) Office emp~lloyees wh~o may be permlittedl to wosrk an average of
40 hours a wTeek over eachl periodl of three mionthis, provid-edl they do
not work more than 48 hours il unns one week.
(d) Any emnployee onl emlerFenlcy! repair workl involving break-
dow~ns, or protection of life. or property, bult in anyT such special
cases one andt one thlird~ times hlis normalll rate shall be paid for hours
worked in excess of forty hours. A4t least once a month andrl either
at the end of each necounting period or at the endl of ench calendar
month, every emnployer shanll report to the Code Authority, in such
detail as may be requiredl, the number of employees and the number
of hourls so w~or~ked by ench employee in that period.l
2. No employees shall be perm'nitted~ to w-ork; in excess of the pr~e-
scribedl maxinnunl hlorls, even when w-orkinig for miore than one
1. No employee Fshall be p~aid at a rate less than $13 a w\eek. except
that empllloyee~s lear~ningi t~he trade andl not exc~eedting five percent
(5%c) of the total number of employees, may be paid not less than
80C% of the~ minnimum1 tluring~ theF first six weekIs of their lear~ning*
2. WaRge rates for piece and..*or hourly w~orker~s shall be at least
20% in excess of the average rates p~revailing on Jrune 26, 1933.
W~eeklyI worker~ clhall not receive le~ss pay! for for~ty (40) hours than
they received for thle prevailing work-week prior to June 26, 1933.
Differentials in amount as they existed prior to June 26, 1!,33, be-
tween w~orker~s r~ceiving minimum p~ay and~ workers in the h~igherll-
paid classes, shall be maintained.
:3. The provisionls of this Ar~ticle apply, I~~reard'less of whether an
emlployree is compl-ensated-lc on a time-rate, p~iecewor~k. or other! basis.
4. Fema~le employees shanll receive the same ra~tes of pay as male
emnployeesc for. sulbsilt nially the same wlork.
Annousc~ V -GENERAL L.4BUR PIFrOISIONh S
1. No personl ulndler 1(i yeas of age shall be emplloy!ed~ in thze
I nd u st y.
2. Within~ eachl State mnember~s of the Industry3 shall comply with
any laws of suchi State implosinig more stringent r~equ~iremnents thanl
this Codle as to wa~:geS! ho(urs of work,1~ health. fire, ~age of employees,
or general working conditions.
3. Emlployees shall have thle right to organize and bargain collec-
tively thr~ougEh representatives of their own choosing, and shall be
free fr~om the inter~fer~ence, restr'ainlt. or c~oer'cionl of emnployers of
labor, or their agrelts, inl the designation of such r~epr~ese ntatives. or in
self-or~ganization or in other con~ceurtedl activities for the purp~lose! of
collectivep bar~rgining or othel nr mtual aid or protection.
4. No employee andlr no onle seeking employment shall be I~rreqir~ed
as a condition of empitlyc~ment to join aniy compny~llr union or to re-
fra.;n fromn Jonungi organizing, or assisting a labor orgumizationl of
his owFn choosing.
5. Emnployecrs 6)hall comply withl the maximnu m hours of labor,
minilnulnn ra~tes of pay!. anid other coniditionis of employment ap-
provedr or prescr~ibedl by the Presidenlt.
6. Eachl emplloyeri h1all p~ost in conspicuous places in his plant full
cop~ies of thisj Code~l.
ArrrI~I.Er VI-A~) YNIriSr.TIONI
1. Ther1e hall b~e a Codie Aurth~ority constituted as follows:
(a) Five (5) persons elected by thle Indulstry at a meeting heldl
in New~ York C`ity' andl duly noticed by the Association for that pur-
pose to all mlllembesi of the Indullstry~ by a ten dlays' wr1itten notice.
At uchmetin ech member of the Indlustrryv who shall have agreed
to bear htis prioportioinat e share of expense~ in accor~dance withl See-
tion G of thiis Aritic~le shiall b~e entitled to at least five votes andl an
additional five votes for each~ loom in excess of 1 looml as shown by
the in-ventory onl file: with the Codc Authlority; provided, hlow~ever,
that no mnember shall b~e entitled to miore than 1,500, votes. Ench
mnembler may cast all of suhlI votes for' a single member of the Code
Authority or m~ay dlistribuite thiem amiong two or more, as he miay
see fit. TIfhe five persons receiving a1 plur~aityl vote shall be declared
elected andi their tenure of office shall be for the term of one year.
V~acanllcis occurr1ing~ in the C'ode Aurthority shiall be filled by a vote
of the TIndusitry\ at, a. meePtingT clled for that purpose. On the com-
plaint of any mremiber of the Indlustry the regullarityv of such elec-
tions shiall be subject to rev\iew by thie Adminiistr~ator.
(b) At the option of the Admninistrator, adlditio~nal r~epresenta-
tives niot exceedingr three to be appointed by thle Admin~irtrato~r, b~ut
with~out vote andl without expense to the Industry9.
2. Thle Code Auth~ority shall hasve the followring duties andl powers
to thle extent permitted by the Act, subject to thle right of the Admin-
ist ra tor on review to veCto anyI3 action taken by it:
(a) To admlinister pr~ovisions of the Code on behalf of the In-
dust~y;; to consider proposals for amendmients of the Code, and
exceptions thereto; anld to maake rules andl regullations necessary or
proper' to carry out suich powers as are specifically granitedl under
(b) Tfo rerquire, fr~om time to time, fromn all members su~ch reports
in sucrh form~ as, in its: judgmlrnent,~ may be deemled useful, to gulide it
in the proper administration of the Code, including reports as to
pror'netion, production facilities and capacityT, machmie hours oper-
ated, number and classes of emnployees, hours of emplloymlent of labor,
wasgesi, stocks on hand, prices andi terms of all sales, anid any reason-
able information relative to the manufacture, sale, shiipment, or
consignmentt of merchlandise, andi the terms thereof.
All information, statemlents, andl reports required by the Comimit-
tee shall b~e ktept. confidenitial, and shall be available only to the statis-
ticianl of thle C'ode Authority anld the representatives of the Govern-
ment, except inlsofar as the Code Authority-shalll direct. the p~repa-
ration and distribution of composite reports of unidentified figures
for the general benefit of the Indlustry.
(c) To establish a uniform sysitemi of cost finding, and, whenl
approved byv thle Adlmini~strat~or, to repquir'e evlery member of the
Industry to keep records sufficiently Jletailedl for th~at purpose.
(d) To establish rulles and regullations subject to the approval of
the Administrator for the disposal of distress mierc~haindise, seconds,
rejected? or damlagedl goodsr in surch a way as to p-rot.ee~t the ow-ners
thereof and cause the least possible disturbance to the stability and
sound condition of the Indrustry.
3. The Code Authority nmay fr~om timie to timei prese~tnt to the
Administrator recommlendatitonls basedl on conlitio~ns in this Indlus-
try w-hich~ w1irllu ten to efetuaI~t: e Lthe IIperatlllion of the~ proIsions o
the Code. Such reconiunendations, when approvedl by the Ad\;minis-
trator, after suchi notice anid hearing as hie shall spec~ify, shall have
the same force and effect as any? prov\ision of this Cocde.
4. It is contemplatedl that pur~suunt to Sectioni 3 of this Ar1ticle
the Code Autho~ity m~ay submit a re~conulnendationr that prior to the
installation of addlitional productive mnc~hinery (exc~luding r~eplace-
ment, of velvet looms~ by loom~s of the samle -i~lth) a c~er~tific~ate shall
be secured from the Administrator that such in talla7tion shall be
consistent with eff~ectuating the policy of the National Indlustrial
Recoveryg Act during the period of the emergency, providled that due
notice of hearing on sucrh application be given the Code Au~thority
with full right to be hear~d.
5. In addition to thle iniformnationi requiredl to be submitted to the
Code Aulthority,! there shall be fulrnishedl to governmental a-gencies
such statistionl information as thle Administrator mayr dteemn neces-
sary for the purpose recited in Section 3 (a) of the Act.
6. The reasonable ex~penses of the Admi slntistrtin of the Code
shall be borner by those members of the industry who authlorized
the submission of this Codec and those who agree in writing to bear
their share there ; and sulch expenses shall be pr~orntedl by the Code
Authority among such members on thle basis of wages paid to
employees provi ed that in any event a yearly mininuanirii of $100
shall be chneged euch suchl member.
A~RTIC'LE VTII-UNFAIR TRADE P.RAC1TICE8
A violation of anly of the following provisions by a member of thme
Industry! shall constitute an unlfair method of competition and a
violation of the Code:
1. All members of the Industry shall require that contrac.ts be
confirmed in wr~iting, except for orders of teni pieces or less, involv-
inig a dlelivery of merchandise for which date of delivery is less than
three days and except for out-of-townl orders for imlmediate delivery
where the purchaser by wnir~e or letter agrees to coniform tno uniform
Velvet Indunstry contracts.
2. All records, documents, and book entries shall accurately reflect
all sales and termis thereof, and any modification ther~eof.
3. Each seller shall afford equal terms, prices, andl advantanges
to all buyers similarly situated, and shall permit no unfair dliscrlimli-
nation to be madle in merchandisingp termis, prices, or pra3ctie
4. No member of the Indust~ry shall give, permit to be givetn, or
directly offer to g~ive, any)thinga of valule for the purpose of influencing
or rew~arding thle action of any employee, agent, or r'e!presetalft i v
of another in relation to the business of the employer of suich em-
ployee, the principal of such agent or thle represented party, Fwithout
the knowledge of suchl emp~loyer, principal, or party. This provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advecrtising except so far as such articles
are actually ued for commnerciall bribery as hereinabove defined.
5. Neither pu rcha se rs nor prospective purchasers, directly or
through their employees. shall be allowed any commissions, bonuses,
rebates, deductions, allowa~nces, except for damugedl goods, subsidies,
or privileges of any kind, w-hether in the form of money. services,
or othlerw~ise, excepting insofar as the operation of this Section or
any part thereof may be suspendled by thle Code A4uthority. This
provision shall not be construed to prohibit free andi general dlistri-
butioni of articles commonly used for advertising.
6. Selling termis shall not exceedl net seventy days, two percent
fifteen days, and no unearnedl discounts shall be allowed.
7. If anld when thle Code Authiority shall prescribe a uniform formu
of contract up,.proved by the Admilutnitoratr all sales shall conform
8. N'o velvet shall be shlippe)d on1 mIlemlorndumll or consignment, by
any membeI~r of thle Indulstryr except to his durly neeredlited agent for
9. N\o o.riginlll design woven or printed, created in the Unitedl
States. may be copied or reproduced in a formn which is sufficiently
like thle oig~inal design to be mistakecn for it, except with the written
consent of the p~rodurcer, provided such original design shall have
been previously reg~istered in the United States Patent. Office or
any othler office or bureau approved by the Code A~uthority and the~
10. No miembelri of the Industrly shall falsely mnark or brand any
product of thle Indulstry in a way thatf tends to mislead or deceive
customlers~ or prospective cuistomers,~ whether as to the grade, quality,
quantity, substance, nature, origiin, size, finlish, or pr~eparation of any
product of thle Industry, or otherwfise.
ARTICLE Y111-PRODEC'TIVE 1\IACHINERY
1. Prodluctive machinery shall noct be operanted more thlan two shifts
of forty (40) hours in each week.
2. Within ten days after the effective date of this Code, members
of the Industry shall file with the Code Authority a complete
inventory of pr~oductive machinery actually installed or then under
8. On and after January 1, 1934, members. i of the Indurstry shall file
with the Code Auth~ority a monthly inventory of all additional pro-
ductive machinery installed, purchansed, or under contract, wFhether
for replacement, expansion, or otherwise, and specifying which of
said machiinesj ar~e for rep>lacemnent and which are for expansion.
Ar:TIcLE T1- 10oDIFICATION OR CANCEr,.LLATON
1. This Code andi all thle provisions thereof are expressly miade
subject to the right of the President. inl accordance writh thle pro-
visions of suibsection (b) of Section 10 of thle N'ational Indlustrial
Recovery Act. from time to time to exncel or mo~dify any orIder, ap-
pmroval, licnse, ruCleor regulation ji.Suled. under' Title I of said Act.
2. This Code, except, as to provisio~ns requlir~ed by th-e ALct, may be
modified on the basis of experience or chI7anes inl cir'Cumsta~nCes, such
modifications to be based upon recommelndlations by the Code Au-
thority to the Administrator, and to become effective on approval
of the President.
ARTICLE XY-EFFECTIVrE DATE AN;D EXPIRATION DA\TE
This Code shall become effective on the second MS~onday after its
approval by the President. It shall continue in effect for a p'eriod
of six (6) months after such~ effective date and mlay be further ex-
tended upon the: application of the Code Author~ity approved by the
Admni n ist ra tor.
Approved Code No. 188.
Regstry No. 281-1-01.