Code of fair competition for the solid braided cord industry as approved on February 26, 1934


Material Information

Code of fair competition for the solid braided cord industry as approved on February 26, 1934
Physical Description:
p. 349-358 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
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Washington, D.C
Publication Date:


Subjects / Keywords:
Cordage industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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Also available in electronic format.
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Cover title.
General Note:
"Approved Code No. 369 ; Registry No. 219-01"

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University of Florida
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aleph - 004861501
oclc - 63654221
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Full Text

Registry No. 219--01

l' I
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4,j~i '~~ppoed Code No. 8 9 0













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Approved Code No. 309



As Approved on February 26, 1934


An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of n, Code of
Fair Competition for the Solidl Braided Cor~d Industiry, and hear-
ings having been duly held thereon and the annexedl report onl said
Code, containing findings with respect. thereto, having been m~rade
and directed to thie President:
NOW, T'HEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority rested in me by Executive Orders of the
President., including Executive Order No. 6543-A, dated December
30, 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 pur-
poses of said Tit~le of said Act;~ and do hereby order that said Clode
of Fair Comnpetition be and it is herebyv approved.
Adminiistrator for Indlustrial Recoverly.
Approval recommended :
Division Ad~m~inistr~aior.
Febmrarly 86, 1934.

42450" "376--138---34



The Wh~iite Hfouse.

SmR: This is a report of the Hearing on the Code of Fair Compe-
tition for the Solid Braided Cord Industryr in the Uinited States,
conducted in Wa'shington, D.C., on Tuesday, October 31, 1933.
In accordance with~ the customarily procedure, every person who
filed a request for appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
The Code which is attached was presented by the duly qualified
and authorized representatives of the; Industry, the Solid Braided
Cord MIanufacturers Association, complying with the statutory
requiremepntsj as representing at this time 100 percent of the total
number of prodlucers and 100 percent of the volume of the industry.

The term Solid Braided Cordl Industry is used to define manufac-
~ture of all solid braidedl cotton cord, A -of an inch in diameter and
larger, including sash cord, bell cord, braid-ed clothesline and other
solid braided cords.
There are fifteen (15) manufacturers in this indu~stry located in
the states of Manssachusetts, Connecticut, Pennsylvania, MIaryland,
Kientucky, North Carolina, Tennessee, Alabama and Georgia. It
was briirouht out ait t.he hearing that never in the historyg of the
industry have there been more than 2,000 employees employed by
It: was shown that the manufacturers in this industry for the past
sevepral years; have~ been sulffering not only from a potential over
capacity in the industry due to the large amount of equipment set up
but also from severe competition from Chains, Jute, Manila, Hemp,
Sisal, Tw~isted, Cotton Rope, or other Coarse Fiber C~ords or Rope
and also Tw~isted and Straight WVire w~herever these: materials can be
used in place of solid braRided cor~d. It is felt that because of these
factors the industry in the last five (5) years has not shown a rea-
sonable p~rofit on investment.
For years manufacturers in this industry have attempted to coop-
erate for the benefit of their needs, but not until the passage of
the National Industrial Recovecry Act were they successful in form-
ing anl association which could 'definitely set up a Code to aid in
combating t.he serious evils which existed. ASn unusual spirit of
fairness and a spirit of give and takie finally brought about an agree-
ment amIong all of the manu facturers, thlereby aid ing in the formu-
latinig of' a Code of Fair Comnpetition conforming to the purposes


of the Act. This is shown in the fact that thle Association now r~ep-
resents 100 percent of the total number of producers in the industry.
ats mu &
The labor provisions of this Code both as to w~ages anid hours ar~e
practically identical with those established in the Code for the Cotton
Textile Industry. This is of benefit in view~ of the fact that miany
of the manufacturers spin their owTn yanrns before converting then
into solid braided cord.
There is a provision calling for the limitation of mnachinie hours
to two (2) shifts of forty! (40) hours each. It is: felt by all that
eih~tyy (80) hours of machine operation will amnply take care of thie
production requirements of each manufacturer.
There is a recommendation calling for the registration of all
productive machinery and for the requirement by thle Admiiinistrator
that prior to the, installation of additional productive machinery by
persons engaged in this industry, except. for the replacement of a
similar number of existing machines, or to bring the operation of
existing productive machinery into balance, such persons shall secure
certificates through the Code Authority that such installation will
be consistent with effectuating the policy of t~he National Industrial
Recovery Act. during the period of the emergency.
The Deputy Administrator in hiis final report to me on said Code
having foundl as herein set fourth andt on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is w~ell designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery~ Act, including
remioval of obstructions to the free flow of interstate and foreign
commerce which tend to dliminish the 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 mlaintainingr united actions of labor and
management under adlequlate governmental sanctions and supervision,
by eliminating unfair competitive practices, by promot~ing the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Indust~ry normally employs not more than 50,000
employees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects w~it~h thle 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 associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no ineqluitable restric-
tions on admission to membership therein.


(d) The Code is not designed to and wi~ll not permit monopolies
or monopolistic practices.
(e) The Code is not le~signe~d to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
F~or these reasons, the Code has been approved.
Heani S. JoHNSON,
A d tii~s trat orl.
FEBRUARY 26, 1935.



To effectuate thie policy of Title I of the National Indcustr~ial
IRecovery Act, during the period of' thle emergency, by reducing andi
relieving unemployment, improving the standards of labor, eliminat-
ing competitive practices, destructive of the interests of the public,
employees, and employers, relieving the disastrous effect of over-
capacity, and otherwise rehabilitating the Solid Braided Cor~d Induls-
try, and by increasing the consumption of industrial and agricultural
products by increasing purchasing power, and in other respects, the
following provisions are established as a Code of Fair Competition
for the Solid Braidled Cord Indu~stry.


1. The term "' Solid Braided C~ord Industry as used hierein means
the manufacture of all solid br~aidedl cotton cor~d, 5~..92" in diamlet~er
andi larger.
2. Thle termi employee as used herein means anyone enlgaged
in thle Industry in any CapacRity. I'receivingr compensation1 for hlis
services, irrespective of the nature or mnethodl of paymentii of such
comrnpe nsati on .
3. The term "; emnployer as uised herein includes anyone by whomn
such employee is employed.
4. The term "~ member of the Industry "! as used herein mneans aniy-
o~ne engaged in the Indlustry as a~ove defined, either as an emnployer
olr on h~is owrn behalf.
5.1 The termi "' productiv-e macin ~nery "' means solidly braiding
6. The term Sou~thern section of the Indlustry as used herein
includes the states of Virginia, Miaryland, North Carolina, South
Carolin a, eorgia, Florida, Klentucky, Tennessee, Alabamna, Arkan-
sas, Louisiana, Oklahomna, Texas, and the termn Northern section
of the Industry includes the remiainder of the United States.
7. Thle terms President"', ''Act"~, anid "'Administrator"' as used
herein mean respectively the President of the United States, the
National Industr~ial Recovery Act, and the Admlinistrator for Indu~s-
trialn Recovery under said Act.


1. No employee-extcept office and super~visory staff' receiving over
$30.00 per week, and repair-shop crew~s, engrineers~, electricians, fire-
men, cleaners, and shipping, and outside cre'S--sha~1 ll ork or be

:::; !


permitted to work in excess of forty (40) hours in any onae week or
eight (8) hours in any twenty-four (24) hour period.~;
2. Repair-shop crews, engineers, electricians, firemen, shipping
and watching crews, shall not work or be permitted to work, except
in cases of emergency involving breakdowns or the protection of life
or property, in excess of forty (40) hours a week, with a tolerance
of ten (10)' per cent. Time and one-third shall be paid for all
time in excess of forty-four (44) hours per week.
3. OBfice employees shall not work or be permitted to work in
excess of forty (40) hours per week averaged over .each six (6)
weeks' period nor over forty-eight (48) hours .in any one week.
4. Outside crews, except in case of emergency, and cleaners shall
not work or be permitted to work in excess of forty-four (44) hour
per week.
1. No employee--except incapacitated employees, cleaners, and out-
side emlployees-shall be paid less than at the rate of $12.00 per week
when employed in the Souther~n section of the Industry and $13.00
per week when employed in the Northern section for forty (40)
hours of labor.
2. Incapacit~at~ed employees, that is, employees whose earning capa-
city is limited because of age, physical or mental handicap, or other
infirm~ity, may be employed on light work at a wage below the mini-
mlum established in the foregoing section, if the employer obtains
from the state authority, designated by the United States Depart-
ment of Labor, a certificate authorizing such person's employment at
such wages and for such hours as shall be stated in the certificate.
Such authority shall be guided by the instructions of the United
States 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 by him, showing the wages paid to, and
the maximum hours of work for such employee. No employer shall
include. within the category of physically incapacitated employees,
more than five (5) per cent of the total number of his employees.
3. Outside employees and cleaners shall be paid not less than sev-
enty-five per cent (75%5) of t~he minimum wage prescribed in Section
1 of this Article.
4. The dollar differential existing prior to July 17, 1933, between
the wage rates paid various classes of employees receiving more than
the minimum wage prescribed above and up to $30.00 per week, shall
not be decreased; and in no event shall any employee be paid at a
rate which would yield a less wage for a work week of forty (40)
hours than such employee was receiving for the same class of work
for a longer work week prevailing prior to July 17, 1933.
5. This Article establishes a minimum rate of pay regardless of
whether an employee is compensated on a time rate, piece-work or
other basis.

1. No person under the age of sixteen (16) years shall be employed
in the Industry.
2. Emnployees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be


jFree from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-orgaanization or In other concerted activities for the purpose of
collective bargaining or other mutual aid or p~rotect~ion.
8. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
ramn from jommig, orgamizmg, or assisting a labor orgammzation of
his own choosing.
4. Employers shall comply wiith the miaximuim hours of labor,
minimum rates of pay, and other conditions of emlploymlent! approved
or prescribed by the President.
5. WVithin each State this Code shall not supersede any lawPs of
such State imposing mor~e stringent requirements on employers regu-
Jating the age of employees, wrages, hours of w~ork, or health, fire, or
general working conditions than imder this Codle.
6. Employers shall not reola.ssify employees or duties of occupa-
tions per'formled by employees so as to defeat the purposes of the Act.
7. Each employer shall post in conspicuous places full copies of
Articles II[I, IV, and V of this C'ode.

Prodluctive machinery in the Industry shall niot be operated for
miore than tw~o (2) shifts of forty (40) hours each per w~eeki.

1. No member of the Industry shall give any guarantee or other
form of protection against price decline.
2. No cord shall be labeledl except in conform-ity withl the standard
weights prescribed by.the Code Acuthority.
1. WTith a view to kepingn the Presidlent andl thle members of this
Code informed as to the observance of: this Code of Fair Compyeti-
tion, and as to whether the Solidl Braided Cord Industry is taking
appropriate steps to effectuate the d~ecl'ar~ed policy of the National
Industrial Recovery Act, each person engaged in the Soblid Braided
Cord Industry shall furnish duly certified reports in substance as
follows and in such formz as may thereafter be provided:
(a) Wlages andr' hours of labo~.--(1) Returns ev-ery. four. weeks
showing actual hourls workedl by the various occupational groups of
empoloyees~ and m-inimulm wee~kl~ rtes of wage.~
(2) Enw~rgenrcy time.-Raeportss every foulr weeks of any emler-
geney-time of employees of any mill.
(b) M~acyinery datfa.--The number of S'olidl Braidlinga Machines
operated each week, the number of shifts, and the total Solid Braid-
ing MIachine hours each1 week.
(c) Reprorts of stocks on hand andz saleis.--Returns every four
weeks showing the number of porundc s shipped on sales during the
period and the number of pounds on hand at the endc of the period.
2. Th~e Secretary of the Solid Braidedl Cord Mianufactur-ers Asso-
ciation is hereby designated the agency to collect anid receive f~rom


each member of the Solid Braided Cord Industry the reports and
data required herein and such further reports as may be required by
the Administrator or the Code Authority, subject to the approval of
the Administrator. The Secretary shall summarize the foregomng
data and report to the Administrator or Code Authority and mem-
bers of the Industry the aggregates based upon the data but shall
withhold all information as to individual manufacturers, except as
may be required by the Administ~rator or by the Code Authority in
the administration of this Code.


1. There shall forthlwith be constituted a Code Authority con-
sistmng of :
(a) Five (5) representatives of the Industry, or such other numl-
ber as mnay be approved from time to time by the Administrator, to
be selected as hereinafter set forth.
(b) Such additional members, without vote, as the Administrator
mlay appoint to represent such groups or interests or such govern-
miental agencies and for such periods as he may designate.
2. The representatives of the industry shall be selected in the
following manner:
Four (4) individuals shall be elected by a majority vote of the
members of the industry, each member of the industry to have one
v-ote. A fifth individual shall be selected by a majority vote of t~he
four (4l) individuals elected by the members of the industry.
3. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
(1) imlpose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association,
by-laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
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 t~he industry and in other respects comply with the
provisions of the Act, the Administrator may prescribe such hear-
ings as he miay deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with t~he provisions of the Act, may require an ap-
propriate modification in the method of selection of the Code
Authority .
5. The Code Authority shall cooperate with the Administrator
in mlakinga investigations as to the functioning and observance of
any of the provisions of this Code at its own instance or on com-
plaint of any person affected through a disinterested agency and
shall report the results of such investigations to the Administrator.
6. The Code Authority may from time to time present to the
Administrator recommendations based on conditions in the Solid
Braided Cord Industry as they m~ay develop which will tend to
effectuate the operation of the provisions of this Code and the poli-
cies of the National Industrial Recovery Act, and in particular along
the following lines:


(a) Recomm Iendations ( 1) for the req uiremlent, by' thle Admnlinis-
trator of registration by persons engaged in the Solid Braided Cord
Industry of th~eir productive machinery\, (2) for the requirement by
the Administrator thiat prior to the installation of additional pro-
ductive m-achinery by persons engaged or engaging in th~e Solid
Braided Cord Industry, except for the replacement of a similar
numberr of existing solid braiding machines or to bring the operation
of existing productive miachineryv into balance, such persons shall
secure certificates through the CodeP Auithority that sucrh installation
will be consistent wvithi effectuating the policy of the National Induls--
trial Recoveryl Act durring the period of the emergency, and (3) for
the granting or withhold-in'g by t~he Administr~ator of such certificates
if so required by himl.
(b) Rcormmenndations for changes in or exemnptions froml the
provisions of this C~ode as to the working hours of ma~chinery which
will tend to preserve the balance of productive activity with con-
sumption requirements. so thiat the interests of the Indlustry andl the
public meay be properly served.
(c) Recommendations for the making of requirements by t~he Ad-
mninistrator as to practices by persons engaged in the Solid Braided
Cord Industry as to mnethodls and conditions of trading~, the naming
and reporting of prices which may be appropriate to avoid discrimni-
nation, to promote thle stabilization of the Indlustry, to prevent. and
eliminate unfair and destructive prices andi practices.
(d) Recomimendationis for regulating the disposal of d~istrelss mer-
cha.ndise in a way to secure th~e protection of the owners and to
promote sound and stable conditions in the Industryv.
(e) Recolmmendations for dealing with any inequalities that may
otherwise arise to endang~e~r the stability of the Industry and o
production and emiploymrent.
~Such recommendations, when approved by thle Admlinistrator,
shall have the samne force andl efec~t as any other provision of this
7. A~ny member of the~ Industry whlo necepts hiis shaRre of thle cost
and responsibility as well as the benefits of participation in this Code
may become a members of the Solid Branided Cord Mnuillfacturers
Association. The duels of the Aslsocintion shall bc levied on such
basis as may from timie to timne be fixed by the Executiv-e Commnittee
thereof, subject to veto of the Ad~cminist~rator.
8. Members of the Indust~ry who are com~ply'ing w-ith~ the r~equiire-
ments of this Code, anid agree in writing, either inidividually or
through trade associations, of which they~ are members, to abide
by the requirements of the C'ode and to pay3 their reasonable share
of the expense of the admninistr~ationl thereof, shall be entitled to
vote in the election of the Code Aut~hority on the same basis as a
member of the Solid Braided Code MSanuf'act~urers Association, and
to the benefits of the activities of the Code Authority.
9. The expense of administration of this Code shall be borne by
the signatories thereto and thle p~roportiona~te share of each signatory
shall be determined by the Secretary of the Code Aut~hority, subject
to review of the Admninistrat~or, on the basis of volume of business
and suich other factors as may be deemed equiitable to be taken inito
consideration. The assessment of each miember of the Industr~y

A111IlllAIUM IllA
3 1262 08486 8283
358 ... -,l~' -

shall be maintained in confidence by the Secet~aryi i aA the`;
10. If the Administrator shall determine that d cioofe
code authority or any agency thereof may be unfair1 di* nkast or
contrary to t~he public interest, the Administrator may,.requhs $' lthat~:i
such action be suspended to afford an opportunity for:invest'~igaton
of the merits of such action and further consideration by such CcdeT~
authority or agency pending final action, which shall not be ebec~ted~'f
unless the Administrator approves or unless he shall fail to dis-
approve after 30 days' notice to him of intention to proceed with
such action in its original or -modified form. -

1. The provisions of this Code shall not be interpreted or applied} .I
to permit monopolies or monopolistic practices or to eliminated or -.''
oppress small enterprises or to discriminate against themn.
2. In addition to t~he information required to be submitted: to
the Code Authority, there shall be furnished to governinent agencies
such statistical information as the Administrator may deem neces-
sary for t~he purposes recited in Section 3 (at) of the Act. I
3. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance-with the provi-
sions of Section 10 (b) of Title I of the National Industrial Recovery
Act, from t~ime to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act.
4. Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, wit~h'
the approval of the Administrator, be modified or eliminated it it
appears that the public needs are not being served thereby abd as
changes in circumstances or experience may indicate. They shall
remain in effect unless and until so modified or eliminated or until :
the expiration of the Act. It is contemplated that from time to time
supplementary provisions of this Code or additional Codes will be
submitted for the approval of the Administrator to prevent unfair
competition in price and other unfair and destructive competitive
practices and to effectuate the other purposes and policies of Title I-
of the National Industrial Recovery Act and which shall not cobiict'
with the purposes hereof.

This Code shall become effective on the second Monda~y after date
of approval.
Approved Code No. 309.
Registry No. 211M)1. **