NATIONAL RECOVERY ADMINISTRATIONi
CODE OF FAIR COMPETITION
POWDER PUFF INDUSTRY
Por sale by the Superilanadent of Documents. Washington. D.C. Price 5 cents
Registry No. 299--1--20
AS APPROVED ON JANUARY 17, 1934
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Approved Code No. 216
CODE OF FAIRR COMPETITION
]POWTDEt~R PUFF INDUSTRY
As ~Approved on January 17, 1934
APPROVING CODE OF FAIPR COM13PErfTITON
POW~TDER ]PUFF' INDJIUSTRIY
An application having been duly made pursuant to and in full
compliance with the! provisions of Title I of the National Industrial
3Recovery Atlct, approved June 16, 1933, for approval of a Code of
Fair Competition for the Powder Puff Industry, and hearings hav-
mng been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having bee n made and
directed to the President.
NOWV, TH[EREFORE, on behalf of the President of the United
States, I, Hugh. S. Johnlson, Adm~inistrator for Ilndustrial Rtecovery,
pur'suant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise, do hereby incorporate by reference said annnesed
report and do find that said Code complies in all respects with the
p~ertinenzt provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Comnpetition~ be and it is hereby approved.
HussaE S. JOHNSON,
Adm~inistfrator for Industr~ial Recover~y.
Appr'oval Recommnenled :
A. D). WR~jITESIDE,
Division Ad m inistrator.
Ja~nuay 17, _1934.
The WCthite House.
SmR: This is the report of the Administrator on the application
for, and public hnearingr on, the Code of ~Fair Competition for the
Powder Puff IndustryS as proposed by the Powder Puff Manufac-
turers Association. The public hearing was conducted in Washing-
ton. on. December 4, 1933. Every person who requested an. appleal'-
ance was freely heard ini accordance with statutory and regulatory
There are 26 accredited m~anufact-urers of powder pueffs, 15 of
which are members of the Association and account for approxi-
mnately 85 percent of the total volume of the industry. Two manu-
facturers, not members of thne A~ssociation, ~were present at the
]ECONOMIICAL, AND STATI~STICAIL MAITERIIAL
The volume of sales in 1929, which was the! peak year, was $6,000,-
000O, and the total employment was 3,000 employees. The estimated
volume of sales for 1933 is set at $4,500,000, and thne number of
employees at 2,000. Wi~th the operation of the President's Reemploy-
ment ~A~greement, employment has increased until it is now estimated
to be only 10 percent under the 1929 le~vel. Although it cannot be
reasonably expected that the current employment ~figures wicill be
incre~cased a great deal, there is every reason to believe that there
will be an appreciable increase in the purchasing power represented,
because it wclas not uncommon formerly to find minimum wages of
$;5, $7, and $8 per week and as little as $3 per week. Estimates are
that factory employees have worked an average of 48 hours per week
throughout the period 1929 to 1933.
RASUML OF CODE PR1OVISIONS
The Code establishes 40 hours as the basic week for production. an~d
321/2 cents per hour as the minimum rate of pay. The principal
exc~eptio~n to the basic 40-hour week is the specialized employee,
termed the "L cutter ", upon whose output depends the employment.
for the entire industry, who is permitted to work 100 hours per year
mn addlitionl to thne maximum of 40 hours.
The principal exception to the minimum-wage provision of thirty
cents per hour is the learner, but the period of learning is limited to
only two weeks. This provision seems justifiable because thie inldust ry
is prohibiting homne work which formerly accounted for a sub-
stantial part of- the entire production.
Trade practices are standai-d and are not in any respect objection-
able in view of the chaotic competitive conditions which have
T~he Deputy Administrator in his final re~port to mne on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well designed to promoted~ the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
remnovnl of obstructions to the free flow of interstate and foreign
commerce wo9hich tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of inldus-
try for the purpose of cooperative action among the trade! groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmnental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing thze consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by Improvmng standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 emn-
ployees and is not classified by me as a major industry.
(c) Thle Code as approved complies in all respects with the perti-
nlent provisions of said Title of said Act, including without limitaz-
tion Subsection (a) of Section 3, Subsection (a) of Section. 7, and
Subsection (b) of Section 10 thereof ; and that the applicant assoc~ia-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
t~ions onr admission to membership therein.
(d) Thbe Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not elimrinate 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.
Huez S. JonNsoN,
JANUBnY 17, 1934.
POWDER PUFF INDUSTRY
AC~RTICLE I -TFT'RPSES'
TCo effectuate the policies of Title I of the Niiational Industrial 1Re-
covery Act, the following provisions are established as a ~Code of Fiair
Competition for the Powder Puff Industry, andi shall be the standard
of fair compllettiton for such I~ndustry, and shall be hjindinga upon
every member thereof.
ARTIrCLE II --DEFINITIONS
The term Powder Puff Industry as used herein includes the
manufacture and/or primary distribution of powder pu~ffs and such
branches or subdivisions thereof as may from time to tim~e be in-
cluded under the provisions of this Code.
The term. emplooyee ") as used herein includes anyone engagedl in
the Industry in any capacity receiving ecomplensa;tion1 for his services,
in spec;r~.-tivet of the nature or method of payment of such c~ompen-
The term employerser"' as uliedc herein includes aInyonle by w~homl
any such employee is compllensalted or employed.
The term "member of the Industry includes anyone engaged in
the Industry as above defi~ned-, either as an emp~loyerr or on his o-wn
The terms "'President", "Act"', and "'Admnlilltra:to~r ", as ulsed
herein, shall mean, r~espectively-, thne Preside~nt of the United States,
the Nationazl Industrial Reco~veryT Act, and the Admlinistrantor of
Title I of said Act.
A RTIC'LE III HOURS
1. No employee, ecep~~lt as provided in Section 2 of this At ticle,
shall be permitted to work in exceess of 40 hours in anly onle week or 8
hours in any twenty-four-hour period.
2. Any male empllloyee 18 years of agre or over engaged in cutting
manter~in s shall be Ipermlitted to work 100 hours per y'ear in addition
to the maxsimumii hours established- in Section 1 of this Article, pro-
vidled that in no event shall such additional hours exrceed 10 in any
one week or 2 in any twventy-four-hour period; and pr~ovidezd, further,
that anyT emplloyee working such additional hours shall be compen-
sate~d at one and one-thir~d times the normal rate.
CODE OIF FAIR COMPETITION
3. No employece shall be permlitted to work morre than 24 days in
any tw~enty-eight day1;F period.
4. The~ provisions of this Arpticle shall not apply to o~utsid~e sales-
mien or to empilloy~ees engagledl mna mnanig eriln or executives capancty
w~ho ear~n not less than. $;35.00 pe~r week.
ARTc~IC 17- AGES
1. No employee shall be paid at less than the rate of Mid,~ per houlr,
except tha~t a learners shall be paid at not less than 241C per hour for
a, p~eriodc of not over twpo wTteks, provided, however, that no employee
who has p.erformned similar work for any employer in the Indlustry
for a total of twPo weeks or more within the preceding two years
shall be c~lass~ed as a learner.
2. Thlis ALrticle establishes a minimum rate of pay, rega;rdless of
wh~ether an emp~loy~ee is compensated on a timle-rate, piecework, or
3. No employee whose full time weekly hours for the four weeks
ended June 1'7, 1933, are redlucedl by the -rlovisions~ of ths Code by
20%0 or less, shall have his or her full time weekly earnings reduced.
No employee who-se full time w~eelyl~ hours are reduced by the pro-
vrisionsu of this Code, in exces~s of 20%, shall have hnis or her said
earnings reduced by more than. 50%0 of the amounc.lt calculated~ by
multiplying the reduction in hours in excess of 20%~ by the hourly
4. A person whose earning enpacity is limnitedl because of age or
physical, or mental handicap may be employed on light work at a,
wJage below thie minim~umn established by this Code if the employer
obtains from~ the State Authorit~y decsignated~ by the United States
Dep~ar~tment of Labor a cer~tifiecnte authorizing his employment at such
wages andl for suchn hours as shall be stated in the cer'tifien3t?. Each
employer shall file with the Code Authority a list of all such persons
emlployed byT him.,
AJRTICLEF V--GENERAL LABOR PROV\ISIONS
1. C'hildl Labor P~rovisi'on.--No person under 16 years of age shallnl
be emplloyed in the Industry no~r anyone under1 18 y~ears of age at
operations or occupations hazardous in nature or d~etrimnental to
health. The Codle Autho~rity shall submit to the Adm~rinistrantor be-
fore January 1, 1934, a list, of such occupations. In any State an
employer shall be deemned to have't complie~d wpith this provision if he
shall have onl file a1 certifk~ate or per~mit duly issuedl by the authority
in such State empowered to issue emlploymientt or agne certificates or
permits, showing that the: employee is of the requiredl age.
2. Prois~ions From11 The Act.--(a) Employees shanll hav\e: the right
to organize and bargain co~llectively2; through reprlesentativecs of their
own choosing, and shall be free fromt the interference, restraint, or
coercion of employers of labor, or their agents, in. thie designation
of sucrh repreSen.nat;ves or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(by No emlployee and no one seeking. employment shall be re-
quired as a condiition of employment to join any company umion
or to refrain from jomning, orgamizmg, or assisting a labor orgamiza-
tion of hzis own choosing, and
(c) Employers shall comply with the maximum hours of labor,
mimml~um rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
3. Reclassification of Emnployees.-No employer shall reclassify
employees or duties or occupations performed for the purpose of
defeating the provisions of thie Act or of this Code.
4. Standards Fror Safety and HiealtL.--E~very employer shall pro-
vide 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 Authorityr to the Adminis-
trator within six. (6) months after the effective date of this Code.
5. State Laws.-N~o provisions in. this Code shall supersede any
lawv within any State which imposes more stringent requirements
on employers as to agre of employees, wages, hours of work, or as to
safety, health, or sanitary conditions, or insurance, or fire protection,
or general workiingr conditions, than are imposed by this Clode.
6. Posting.--Each employer shall post in, conspicuous places in his
plant, accessible to employees, copies of Articles III, IV, and V of
7. Home Worrk.--All members of the Industry shall arrange to dis-
continue th~e sys~tteml of home work by February 1, 1934. Ilf, how-
ever, this provision wRorks an unreasonable hardship on anyT em-
ployer, he may, upon appeal to the Code Authority, and subject to
the approval of the Admcinistrator, be allowed additional time up to
a total of two months in which to complete its abolishment.
ARTICLE VI--ORGANIZATION, POll'E~RS, A1ND DUTIES OF CODE
1. To further effectuate the policies of the Act, the Code Authority
is hereby constituted to administer this C~ode.
2. Thne Code Authority shall consist of six individuals, or such
other number as may7 be approved fromt time to time by the Admin-
istrator, to be selec~tedl as hereinafter set forth, and of such additional
members, without vote, as the Administrator, in his discretion, may
appoint to represent such groups or gaovernmental agencies as hne mnay
Th~e Code Authority members shall be selected as follows:
Any member of the IndustryT who has qualified as provided in
Section. 5 of this Article shall be entitled to one vote in the nlomina-
tion and election of the members of the Code Authority. The pro-
ponenlts of the Code shall arrange~ for such nomination and election
within 90 days of the effective date of this Code. In the interim,
t~he regularly elected officers of the Powder Puff Manufacturers' As-
sociation shall fulfill the functions and discharge the duties of the
3. Each traade or industrial association directly or indlirectly pure
ticipating in the selection or activities of the Code Authorit~y shall
(1) impose no inequitable restrictions on :memlbership, and (2) sub-
mit to the Adminlstrator true copies of its articles of association,
by-laws, regulations, and alny amendments w\Yhen mad~e thereto, to-
get~her with suceh other information as to membership, organization,
and activities as the Administrator may deem necessary to effec~tuate
thle purposes of the Atct.
4. In order that the Code Authority shall at all times be truly
representative of the Indlustry and in other r~esp~ec~ts comply with. the
provisions of the Act, the A-dministrator may provide such hearing
as hie may deeml proper; and there after if he ~shall find that the Code
AuthorityS is not truly repr~esentative or does not in other resp~ects
comp~ly wlith the provisions of the Act, may require an appropriate
modification in the mnethodl of selection of the Co~de Authlority, or any
5. Mfemb~ers of the I~ndustry shall be entitled to participate in alnd
share the benefits of the activities of thne Code. Authority and to
participate in the selections of the members thleretof by assenting
to and comply~inn with the requirements of this Code and sustain-
ing their reasonable share of the expense of preparation, presentn-
tion, and administration of this Code. Such reasonable share of the
expenses of adlministration shall be determined by the Code AIluthor-
ilty, subject to r~eview by the Administraztor, on the basis of voclum~e
of business and/or such other factors as may be deemed equitable.
6. Nothing contained in this Code shall constitute the members
of the Cod7e Authority3 partners for any purpose. Nor shall anty
member of: the Code Authority be liable in any manner to anyone
for any act, of any other :member, officer, agent, or employee of the
Code Authority exrercisingr reasonable diligence in the conduct of his
duties hereunder be liable to anyone for any action or omission to
act under the Code, except for his own willful .misfeasance or non-
POWERS AND DUTIE
7. The Code Authority shall have the followingi powers and duties
in addition to those elsewhere provided in this Code:
(a) To adopt by-la ws and rules and regulations for its procedure
and for the administration and enf~r~cemen t of the Codle, inr accord--
ance with t~he powers herein granted, and to submit the same to thej
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of mee~tings
when held, and such other information as to its activ-ities as theo
Administrator may deem necessary to effect -the purposes of the
(b) To obtain from members of the Industry for use of the Code
Authority, for the Administrator in the administration and enforce-
m~ent of the Code, and for the information of the Presid~ent, reports
based on periods of one, two, or four wTeeks, or multiples thereof,
as soon as the necessary readjustment within the Indu~stry ?can be
made and to give assistance to members of the Industryy in imp~rov-
ing methods, or in prescribing a uniform system of accounting and
reporting. All1 individual reports shall be kept confidential as to
members of the Industry- and only general summaries thereof may
(c) To receive complaints of violations of this Code, m~ake invpesti-
gations thereof, alnd bring to thne attention of the Administrator
recommendations and information relative thereto for such action
as in his discretion the facts warrant.
(d) 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 agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responlsibilties under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
()To coordinate the administration of this Code with such other
Coeif any, as m~ay be related to the IndustryT, or any subdivision
thereof, and to delegate to any other administrative authority, with
the approval of the Administrator, such powclers as will promote joint
and harmonious action upon matters of common interest.
(f) To secure an equitable and proportionate payment of' the
expenses of mnaintaininlg the Code Authority and its activities from
members of the Industry.
(g) To cooperate with the Administrator in regulating the use: of
the N.R.A. Code Insignia solely by those employers who have
assented to, and are complying with, this Code.
(h) To establish or designate an agency on Plannilng and f~iair
Practice to which shall be added by the Administrator a representa-
tive instructed to safeguard the Interests of the consumer, which
shall cooperate with the Code Authority in developing fair inter-
and intra-trade practices and industrial planning, including the
regularization of em~ploymenlt and stabilization of employees for the
Industry. At5ny such recommended practices being amendments to
the Code must be approved by the President.
(i) To initiate, consider, and make recommendations for the
modification or amlendmenmt of this Code.
(j) The Code Authority may appoint and remove and fix the
compensation of such. employees, accountants, attorneys, and officers
as it shall deem, necessary or proper for the purpose of adminristering
(k) If it shall be represented to the Adm~inistrator by any inter-
ested party, or he shall determine upon his own motion, that anyl
action of the Code Authority, or of any subdivision Code Authorityj,
is unfair to any private interest or contrary to the public interest,
the Admninistrator may require that such action be suspended for a
period of not to exceed thirty (30) days to afford an opportunity for
investigation of the merits of such complaint and further considera-
tion by the Code Authority pending final action, to be taken only
upon approval by thme Admninistrator.
GENERAL ADMIINISTRATIV]E PROVISION
8. In addition to the information required to be submitted to the
Code Auth~ority as set forth in this Article there shall be furnished
to Government agencies such statistical information as thne Admiin-
istrator may deem necessary for the purposes I~reited~ in Section
3 (a) of thle National Industr~ial Recovery~ At.
9. An appeal from any action by the Code Authocrity affecting thze
rights o~f any employer or emlployee in the I~ndustryT may3 be taken to
~ARTICi VI-RADIE PRACTICES
The following practices constitute unfair mnetho~ds of comnpetition
for members of ithe In dust ry and are prohibited:
1. False MarkXing or Branding.-g.-The false marking or branndingi
of any product of the Industry which has the tendency to mlislead
or deceive customers or prospective customers, whether as to the
gecrade quality, quantity, substance, character, nature, origin, size,
fiish r pr~eparation of any products of the Indusltr~y, or othezrwise.
2. Misreiurie.enta~tion or False or Misleiadling Ade d~rtl;i ing.-The
makings or causing or knowingaly permitting to be made or published
any false, materially inaccurate, or d~ecepti-ve statement by way of
advertisement or otherw~ise, whether concerning the grade, quality,
quantityr, substance, charter, nature, origin, size, finish, or prepa-
ration of any product, of the InldustryS, or the credit terms, values,
policies, or serniees of any member of the Industr~y, or otherwise,
having the tendency or capacity to mislead or deceive customners or
3. Comlmerc~ial Brtibery.--No member of thle Intlustr~y shall give,
permit to be given, or directly offers to give, anything of value for
the purpose of influencing or rewardling th~e netioln of any employee,
agent, or representative of another, in relation to thne businiess of
the employer of such employee, t~he principal of such agent or the
represented party, without, the knowledge of such emuployer, princi-
pal, or party. Commercial bribery provisions shall not be construed
to prohibit free and general distribution of articles ctommnonly used
for advertising except so far as such articles ar1e actually used for
commercial bribery as hereinabove defined.
4. Irter~fernce urith Coltr~acfual Relations.-10alicioously inducing
or attempting to induce the breach of an existing or~al or written
contract between a competitor and his customer or source of supply,
or interfering with or obstructing the performance of any such
contractual duties or services.
5. Seret Rebatfes.--The secret paymlent, or allowa~nte of rebates,
refunds, commissions, credits, or unearned discounts, whether in
the form of money or otherwise, or the secret extension to certain
purchasers of special services or privileges not extendled to all pur-
chasers on like terms and conditions.
6. Defamnation.--The defamation of compet~itors~ by falsely imr-
puting to them dishonorable conduct., inability to perf~ormn contracts,
questionable credit standing, or by other false representations or
by the false disparagemlentt of the grade or quality of their goods.
7. Sales of Seconds.--The sale or offers for salle, at a redulcedl price,
of rejects, factory seconds, or other defective mnerch~andise byr any
member of the Industry in excess of 49~ of his total production.
Any such sale shall be reported to the Code Authority. Sales in
excess of 4% may be permitted by the C'od~e Author~lity' upon a
showing that such restriction works an undue hardship upon a mnem-
bSer of the Industry, but the granting of such permission must not
allow such member an. unfair competitive advantage nor workr to
the detriment of other mem~bers.
8. Processing M~aterials Furniished by Oth~ere.-The sale of the
service of processing materials furnished bly others at less than the
price arrived at by deducting the market cost of such materials, if
purchased by the member concerned, from the price estab~lishedl by
such member for the finished product.
9. Sales Beloto Cost.--To sell or offer to sell anyT product below its
cost, except to meet the competition of a member of the Industry
whose cost is lower. Each member of the Industry shall determine
cost in. accordance with a cost accounting system capable of applica-
tion by all members to be formulated by the Code3 Authorityv and
approved by the A-ldministrator.
10. Terms of Sa~le.-Terms shall not exceed 2C70 discount for cash
within 10 days from date of invoice, or 30 days net, w~ith~ the privi-
lege of giving E.O.M4. (end of months) dating.
1. This Code and all the provisions thereof are expr~essly made
subject to the right of the President, in accordance with thle pro-
visions of subsection (b) of Section 10 of the National Indlustr~ial
RecoveryT Act, from time to time to cancel or modify any order, ap-
plo~val, license, rule, or regulation issued under Title I of said Act
and specifically, but without limitation, to the right of the Presi-
dent to cancel or modify his approval of this Code or any condi-
tions imposed by him upon hnis approval thereof.
2. This Code, except as to provisions required by the Act., mlay
be modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administra-
tor and such. notice and hearing as he shall specify, and to become
effective on approval of the Administrator.
ARTICLE IX-MOnlChOPOLIE S
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to chimmate, oppress, or dliscrimi-
nate against small enterprises.
A~SRTICLE X--PRICE 1[NCHEASES
Whereas the policy~ of the Act to increase real purchasing power
will be made imnpossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases should be delayed and that, when made, the same ,should,
so far as reasonably possible, be limited to actual increases in the
ARTICLE XI--EFFECTI\'E DATE
This Code shall become effective on the tenth daty after date.
Approved Code No. 216.
Registry NIo. 299-1-20.