Code of fair competition for the paper makers' felt industry as approved on May 11, 1934


Material Information

Code of fair competition for the paper makers' felt industry as approved on May 11, 1934
Physical Description:
p.129-138 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Papermaking machinery felts -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Approved Code No.426 ; Registry No.232-1-02".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004856178
oclc - 63654287
System ID:

Full Text

For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents

Approved Code No. 426

Registry No. 232--1-02









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Ir\r ii


This publirntion is for sale by the Superintendent of Documents, Government
Plinting Offiice, W\ashinston, D.C., and by district offices of the Bureau of
Foreign andl~ Domllestic Colmmelre.
Atlalnta, Ga.: 541 Po~st Ofic~e Building.
Birminghamu Ala.: 257 Federal Building.
Boston, Rlass. : 1801 Custombouse.
Buffalo, N.Y.: Chamiber of Commerce Building..
C'harleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 170)6, 201 North W'ells Street.
Cleveland, Ohio: Chamiber off Commerce.
Dall~a, Tex.: Chamber of Commerce Building.
Detroit, Illich.: 801 First National Bank Building.
Ho~uston, Tex.: Chamber o~f Commerce Building.
Indianapolis, Indl.: C~hambier of Commer'ce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansuis City, RIlo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadw~ay.
Lo~uisville, Kyi~.: 408 Feder'al Building.
Me~mphis, Tenn.: 229 Federal Building.
lIlinneaplolis, Illinn.: 213 Federal Building.
N~ew\ Orleans, La.: Ro~om 225-A, Customhouse.
N~ew Yornk, N.Y.: 734 Customhouse.
Nor~folk;, Va.: 401C6 Ea~st Plume Street.
Philadtelphia, Pa.: 4'12 Commercial Trust Building.
Pittsburgh,, Pa.; Chamber of C~onlunerce Building.
Portlanid. Oreg.: 215 Newn Post Ofiiee Building.
St. Loui;, RIo.: 5016 Olive Street.
Sunl Frnnc~isco, Callif.: 310 Custombouse.
Seattle, Wa'sh,.: 800 Federal Office Building.

Approved Code No. 426



As Approved on ~May 11, 1934


An application having~ been duly madle p~ursuant to and in full
compliance with the p~rovilsions of TCitle I of the National Industrial
Recovery Act, approved June 16, 11933 for approval of a Code of
Fair Competition for the Paper M~ake~s~ Felt Indus~tryg, and hearings
having been duly held thereon and the annexed report on said Code
containing findings with respect thereto, having been made and
directed to the President:
NOWV, THE~EREFORE1, on behalf of t~he President of the Unlited
States, I, Hugh S. Johnson, Administ~rator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Pres-
ident, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby: incorporate by reference said an-
nexed report and do find thalt. said Code complies in all recspec~ts with
the pertinent provisions and will promote tkhe policy and purposes of
said Title of said Act; and do herebyr~order that said Code of Fiair
Competition be and it is hereby approved; provided, however, that
the! provisions of Article VII, Sect~ion 3, insofar as they prescribe
a waiting period between the filing with the Code Auth~ority (i.e.
netual receipt by the Code Atuthority-) and the effective date of
revised price lists or revised terms and conditions of sale be and they
are hler~eby stayed pending my further order.
ASdm~inistl~raor for Inidustr~ial: Rc~oery.
Appr~oval rec mmlenlded :
H. O. KINs,
Division A dmn itrat~inor.
WTASmISavoN, D.C.,

sacaa *- 544-1-a-as



Th Wh17ite House.
SmR: This is a report on the Code of Fair Competition for the
Paper Makers' Felt Indust-ry presented by the Paper Mankers Felt
.Association, claimingr to represent 10070 of the Industry.
The hearings was conducted in W\ashington, D.C. on January 17,
1934. ~Every person who requested an appearaonce was freely hleardl
in accor~dance with statutory and regulatory requiremnents. The
Code was submitted by duly qualified and authorized representatives
of the IndustryT.

The Industry is comp~osed of eleven (1_1) concerns which in 1933
did ap~proximantely $9,000,000 worth~ of business. In 1929 these same
companies had annual sales of approximately $~15,400,000. Al-
though. paper makers felt is m~ade! primarily from wool, there is
little relation betw~een. this Industry and the Wool Textile I~ndustry
generally. TPhe Paper M~aker's 'e-lt Industry mlanulfactu~res a spe-
cialty for a dlifferenlt kind of consumer than for any other branch of
the wool mannu fact during.
In cthe Paper, Makers'.~ Felt Indusntry there is no necePss~ityv for limitingc
thre operating hours of machinery. There is no possibility of ovler-
production in this Industry because every piece of goods is made on a
definite order from a definite customer, and3, with very few exceptions,
can be used on only onre definite position on a certain paper machine.
Consequiently, no manufacturer of paper makers' felt can make a
supply in excess of the demand, and therefore there is no possibility
of dumping goods on the market at prices below th~e cost of manufac-
ture, or of creating, on account of an over-supply, the miany other
conditions which~ would be harmful alike to the Inidustry and to its
This characteristic of the Paper Maklers' FEelt Indus~try is explained
by the fact that thousands of different sizes and styles of felt are
required to meet the specific demands of indlividlual paper machines. *
Furthermore, the requirements of individual paper manufacturers
are constantly changing, so that it would liever be safe for a felt
manufacturer to make felts in excess of those actually ordered.
Standardization of this producet,is impossible, and nlo felt manulfac-
turer would make up a stock of felts for which he had no order.
The sizes of looms vary in width from 40" to 540", whereas the woolen or worstedl mill makinga clot~hinga material seldom haLs
over three sizes. Besides the large range of sizes, there are also sev-
eral different styles of looms, as heavier type looms are required to
weave the hea~vier type felts, aet.


As orders for different sizes and types of felts vary greartly from
week to weekr, this means that the distribution of orders is such that
it almost never happens that different loom sizes are equally busy.
Good business on one type of felt m~ay mean that a certain group of
loomns is very busyg this week and within a period of a few w~eek~s this
group may be~ almost entirely idle, and another group very busy.
All of which, means that without a v-ery great sur~plus of looms no felt
manufacturer can hope to fill his orders pr~ompltly excpt by the
flexibility obtained in running some looms many more hourls per day
than others.
The minimum wage established by this CodeX is 35$ an hour. W~ith
certain exceptions, hours are limited to 40 per w-eek~. The excep~ltions
to the maxinulm hours are similar to other codes and exempts m~ana-
gerial and super~visoi-y employees receiving $35.00 per week and
outside salesmen. Engineers, electricians, firemen, empllloyees en-
gaged in repair shop, shipping and outside crews are limited to 40
hours per weeki with a tolerance of 100.~, provided that time and
one-third is paid for all time workledl in excess of 40 hour.<. W~atchn-
mnent may w~ork to 56 hours per week-.
There, has been a relatively small decline in emllloy)ment in, these
m~ills. During the 19203 peak there were! 22934 workers compaliired
with 1999 in the fall of 1933.
The Depltry Admninistrator in hnis final report to me on said Code
having found as herein set forth and on. the basis of all therc proc~eedc-
ings in this matter;
I ~find that:
(a) Said Code is well designed to promote thie policies and pur-
poses of Title I of the National Industrial 1Recovery Atct, including
remnoval of obstructions to the! free flow of interstate and foreign
comme~c~e. which tend to diminish the amount thereof and wiill pro-
vide for the general welfare byT promoting the or~ganization of in-
dustry for the purpose of coop~erativ7e action amr~ong the trade groups,
by indlucingr andl maintaining united action of labor and ma~nagemntcn
under aldequate. gojverlmnm nta sanctions and sup~erv\ision,~~ by elimrti-
nating unfair competitive p:ractices, by promoting the fullest~ possible
utilization of the present produic~tive capacity of ind~ustr~ies, by
avociding undue r~estr~ic~tion of p~rod~uctio n (exceplt as masy be tem~po-
rarily required), by increasing the co~nsumptionl of ind~ustr~ial andi
agricultural p-r~oducts thro~ugh increansing purchas~ing~ power, by r~e-
durcing and relievingi runemplo~yment, by impro-ving standarnlds of
labor, and by oth~erwnise rechabilittai ng industry.
(b;) Said IndustryJ normanlynl~ly em lys not more than 50.000 em-
ployees; and is no~t classified by me as a major industry.
(e) The Code as app~roved complies in all respects with th~e -pert~i-
nent provisions of saidl Title of said Acet, ilc~ludtiner without limita-
tion Subsection (a) of Section 3, Sulbsection (a) of Section 7, and
Subsection (b) of Section 10 thecreo~f; andc that the appficennt associa-
t~ion is an industrial association truly repr~esenta~tive of the aforesaid


Industry; and that said association imposes no inequitable restrie-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
smasll enterprises and will not operate to discriminate against them.
(f) Thlose engaged 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, thle Code has been approved.
HowH S. JoHNson,
Ad minista t or.
rA Y 11,1 1934.


To effectuante the policies of Tiitle I of the ,Nationanl Inldustrial
Recovery Act, this Code is establishedl as a Code of Fair Competition
:for thie ]Paper M1akers' Felt Industry, and shall be the standard of
fair competition for such Industry and shall be bindling upon each
member thereof.
1. The term "Industry "' as used herein means the mnu~rfacture
and original sale of woven woolen felts and jackets for paper
2. T'he term '"member of thie Industry as used herein. includes,
but without limitation, any individual, partnership, association,
corporation or other form of enterprise engaaged in the Industry,
either as an employer or on its own behalf.
3. The term employee as used herein, includes any and~ all
persons engaged in the Industry, however compensated, except at
member of the Industry.
4. The terms "C Pre~sident ", "Act and "Administrator as used
herein mean, respectively, the President of the Unitedl States, Title
I of the National Industrial Recov~ery Act and the Administrator for
Industrial Rtecovery.

1. N~io employee shall be. permitted to work in excess of eight (8)
hours: in ny twepntyl-four (24) hour nperiod begrinning at midnrighlt,
provided that in order to meet the requirements of: customers or
to prevent thne spoilage of materials, a tolerance of twvo (2) houlr per
da~y maty be allow-ed, bjut no employee shall'be petrm~itte~d to work in
excess of forty (40) hours per wneek~, except as herein o~thelr ise
2. The provisions of the foregoing section shall nlot aIpply to the
(a) Em~ployees in a mannagerial or supervis oryy cpac~it~y earning
thirtyg-five dollars ($353.00) a week or more andr outside salesm~en.
('b) Engrineers, electric~ians, firemen, employees en~gaged on r~epair-
shop', shipping and outside crlews. who shall not be permitted to work
in excess of for~ty (40) hours per week with a to~ler1ancet of ten per
cent (10c); providedl that time and one-third shall be p~aid for all
hours worked in excess of fortyT (40).
(c) Watchmen who shall not be permittedl to wor~k in excess of
fifty-six (56) hours per week.,


8. Thze maximum hours fired in the foregoing sections shall not
apply to any employee on emergency maintenance or emergency
repair work mvrolvingr breakdowns or protection of life or property,
bult in any such special case at least timne and one-thlird shall be
paid for hours worked in excess of the maximlum hours herein pro-
vided. Emergency hours worked shall be reported monthly to the
Code Aluthority.
4. No employee shalll be permitted to work; for a total number of
hours in excess of the number of hours prescribed for each week
or dayl, whTether emlployved by one or more employers.
1. No em~ployee shall be! paid less than at the rate of thirty-five
(35) cents per hour.
2. This ~Article establishes a minimum rate of pay which shall
apply irrespective of whether an employee is actually compensated
on a time rate, pieceworki, or othlrer basis.
3. Wage differentials existing for the last pay period prior to
Sepitelmber 15, 1933, shall be maintained for all employees receiving~
miore than the mninimumi herein prescribed. All employers shall
report to the Code Authority within one month after the effective
date of this Code such readjlustment of pay schedules.
4. Female employees performing substantially the same work
as male employees, shall :receive the same r'ate of pay as male em-
ployees. The Code Aut~hor shall, within ninetyv (90) days after
the effective date of this Cod, file with the Adlcministrator a de-
scription of all occupations in t~he Industry in wr~hich both men and
women are employed.
1. Ni~o person under sixteen (16) years of age shall be employed in
the Industry. No person under eighteen (18) years of age shall be
emp~loy~ed at operations or occupations which ar hazardous in nature
or dangerous to health. Th~e Code Authority shall submit to the
Administrator within thirty (30) days from thie effective date a list
of such operations or occupations. In any State an employer shall
be deemed to have complied wIpitht~ this provision as t~o age if he shall
have on file a certificate or permit duly signed by the Authority in
such State empowered to issue employment or age certificates or per-
mits showing that the employee is of the required age.
2. In compliance with Section 7I (-a) _of the Act it is provided:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in. the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
(b) Tha1t lno employee and no onie seeking employment shall be
required as a condition of employment to join any company union


or to refrain from joining, organizing, or assisting a labor organliza-
tion of his own choosing, and
(c) That employers shall comply with the maximum hours of
labor, minimnum rates of pay, and other conditions of emlployinentlt
approved or prescribed by thne ]Presidtent.
3. No emplloy~e r shall r~eclassify employees or duties of oc~cup~t~ionls
performledl or engaged in any other subterfuge for thne purpose of
defeatingr the purlt~ipose or p~rovisio~-l;nsf the Act, or of this Code.
4. To prevent any improper speeding up of wvori (.st ret chouts),
no employee in the Indcustr:y shall be I~reuiredc to do any- w-ork in ex-
cess of the practice as to the class of wpork of such emp~lloy)-ee preva-il-
ing on July 1, 1)3:3, unless slc~h increase is submitted~ to and appro~ved.
by~ the Code Author~ity.
5. No p~rovision in this Code shall supe>Frsdc~e any State or Ftderl~l
lawTf which imposes on empnl~oyers more stringent Itcreqi remenl~~ts as to
age, of emplloyees, wages,~j hourlls of work, or as to safety, health, .-ani-
tary or general working conditions, or insurance, or fire p~'~rotetion,!
than are imposed by thiis Code.
6t. All emplloyers shall post. Articles III, I~V and V of this Code7r in
conspicuous places accessible? to emnployees. EvecrS member of the
Industry shall comply with such regulations relatmgr to postingr of
provisions of codes as have! been or may be prescribedc by thle
1. There shall forthwith be constitultedl a Code ALuthority to coop-
erate with the Administrator in the administration of this Codle.
Tihe Code A~uthority shall consist of three (3) persons elected by a
fair method of selection to be approved by the Ad~ministrator.
2. In addition to me~mbershipi as above provided, there may be a
member or members without. vote and without expense to the! Indus-
try to be appointed by the Administrator..
3. Eazch trade or industrial association directly or indirectly panr-
~ticipa~ting in the select ion or activities of the Code ~AuthorityT shall--
(1) impose no inequitable restrictiorn on mecmbership, and
(2) submit to the Admini'strator trule copies of its articles of asso-
ciation, by-laws~P, regulationss, and any amendmrlents when made
thereto, together withl such other information as to mlembership or-
ganization, and activities as the Adcministrator mnay deem necessary
to e~ffectuate the purposes of the A9ct.
4. In order that the Code A;uthority shall at all times be truly
representative of the Industry and in other respects comply with the
pro-visions of the A8ct, t.he AJdmlinis~trator maypeciesc er
mngs as he may deem proper and thereafter if hre shalle fndha thear
Code Authority is not truly. representative or does not in other re-
spects comply with the provilsions of the Act, ma~y require an appro-
priate modification in the method of selecting of the Code Authority.
5. MClembers of the I~ndustry shall be entitled to participate in an~d
share the benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by assenting to and


complyinga with the requirements of this Codle and sustaining their
rea~sonable share of the expenses of its administration. Such reason-
nlble share of the expenses of administration shall be determined by
thle Code Authority, subject to app~roval by the Administrator, on the
basis of volume of business andl or such~ other factors as may be
dlleeme equitable.
6. Nothing contaiined~ inl this Code shanll constitute the: members
of the Code Authority partners for any purpose. N~or shall any
member of the Code Author~ity be liable in any mannner to anyone
for any act of any o~ther iemiber, officer, ngent, or employee of the
Code Auth~ority. Nor shall any member of the Code Authority,
eerclisciing reansonnble diligence in the conduct of his duties hiere-
under, be liable to anyone for any nation or omission to act under
this Code, except for his ow~n willful misfeasance or nonfeasance.
7. Th~e Code Aulth~ority shall have the following further powers
andd duties, the exercise of which sh~all be reported to th~e Admnin-
(a) To obtain from mnemb~rs of the Indlust~ry such information
and reports as are! required for the administration of the Code.
In addition to information required to be submitted to the Code
Authority, members of the Industry subject to this Code shall
furnish. such statistical information as the Administrator may deem
nrecessary for the purposes re~citeid in Sect ion 3 (a) of the Act, to
such Feuderal and State agencies as the Administrator may desig-
natet; provided that nothing in this Gode shall relieve any member
of the Indlustryg of any existing obligations to furnish :reports to
any G~overnmlent agencies. No Individual re-port shall be disclosed
to any other member of thze Industry or any other party except to
suIch other governmental agencies as may be directed by the Admin-
(b) Tlo secure from membrs of the Indlustry an equitable and
proportionate payment o~f the reasonable expenses of maintaining
the Code Authority andl its netivities.
(c) To r~ecommnend to the Administrator further fair trade pralc-
tice p~rovisions to govern members of the Industr~y in their relst.ions
with. each other or with other industries and to recommend to t~he
Adm~inisTtrator measuresP for ;rindutrial planning, including staLbiliza-
tion of e~mployme~t nt.
(d) To r~ecommenn d~ miodification of this code, which, after notice
.to the members of the! IndlustryS alnd their app~roval, shall become
effective e as part of this code uponl approval by the Admiinistrantor
after suchh notice and hearing as he may specify.
(e) To adopt by-laws, undl rules and regulations for its procedure
and for the admlinistration of this codle.
8. If the Administrator shall a~t any time determine that any
action of the Codle Authority or any agency thereof maly be unfair
or unjus~t, or contrary to thle public interest., t.he Administrantor may
require that such nation be suspendled to affordl an opportunity for
investigation of the mlerits of sulch action and further consideration
by such Code Auth~ority or agency pending final action, which shall
not be effective unless the Adm~inistrator approves, or unless he
shall fail to disapprove, after thirtyl (30) days notice t~o himi of
intention to proceed with suchl action in i~ts original or modified form.


1. Uniform Cost A~cco-unting.-TheTh Code ALuthor~ity shall cause to
be formllulated an accourrn ti ng sy'stem and method of cost finding and/or
estimating capable of usetr by and acceptable~ to all membler~s of the
Industry. .After such system and methods have beenr formulated
and ap~provedl by the Admninis~trator, full details conc~erningn them
shall be made available to all members. Th~ern fter, all mlemiber~s
shall determine and/or estimate costs in nccol~rdance wvith the purposes~
of such methods.
2. Sellinilg Below Reasonazble Cost.--When the Code ~AuthorityT
determines that an emergency exists in this Inldustry,, and that th~e
ca use thereof is destructive pr1ic~e cutting such as to render ineffective
or seriously~ endanger the manintenancee of the provc?\isio-ns of this Code,
the Code Authority~ may cau~e to be det~termnined the lowest r~easo-nab~le
cost of the products of this Industry, such determination to be sulbj~c~t.
to such notice and hearing as the Administrator may require. Thle
Admninistrator may approve, dfisapplrove, or modify the determinat-
tion.. Thereafter, during the period of the emergency, it shall be an
unfair trade practice for any members of the Industry to sell or offer
to sell any products of the IndcustryS for wh~ich~ thle lowest re~asonable
cost has been determinedl at such prices or upon such terms or condi-
tions of sale that the buyer will pay less thlerefor than the lowest
reasonable cost of such products.
When it appears that conditions have changed, the Code Author-
ity, upon its owCn initiative~, or upon thne request of any interesijted
party, shall cause the determination to be reviewed.
3. Pulblished Pr~ices.-Within thirty (30) days after the effective
date each, member of the Industry shall file with the Code Authority
a price list for all products of the Industry sold or offered for sale
by him, together with the discounts and terms of paymelnt.
Revisions in price lists and~/or discount sheets ma~y be filed there-
after with the Code A~uthority by any member of the Industry to
become effective upon, the date sp~ecified thtereon, prov-ided, however,
that such revision shall be published and filed with the Code Author-
ity ten (10) days in adva'tnce of the effective date thereof, unless
the Code Authority shall lut~hor~ize a shorter period. Copies of
revised price lists and discount sheets within notice of the effective
date specified shall be sent immedt~ciately by the Code Authority to all
known members of the industry who thereupon mrlay file, if they so
desire, revision of their price lists and/or discount sheets, which
shall become effective upon the date when the revised price list or
discount sheets first filed shall go into effect.
Price lists shall be open. for inspection to all interested parties
immediately upon being filed with thIe Code Authority~ and the trade
shall be notified when revised price list's are filed
4. Sales Below! Publish~ed Price.--No member of the Industry shall
sell or offer to sell any products of the Industry at prices lower than
the price quoted in his price list or on more favorable terms and
conditions of sale than the terms and conditions of sale previously
published anrd filed by such member with the Code Authzority in
a Bee paragraph 2 of order approving this Code.


accordance with the foregoing provisions and in effect at the time of
such~ sale.
5. Guarante~es.-No member of the Industry shall guarantee any
produIct of the Indust~ry against advances or protect any ~product
of the Industry against. decline in price or guarantee the life and
services of any product of t.he Industry, except for the usual guar-
antees against defects in ma~nufacturing..
6. Inatccuratfe Refeirice: to Com petitor~s, etc.-No member of the
Industry shall publish or otherwise make any statement which
refers innecurately, in anyl material particular to any competitors
or theiir groods, prices, values, credit terms, policies, or services.
7. Tlierms.--No member of th~e Industryg shall allow ensh discount
in excess of the followings:
(a) 1%e, 10 days; 30 dayvs net. for delivery east of the Rocky
(b) 1%~, 20 day~s, 40 days net for delivery wnest of the Rocky
1. This Code and all the provisions thereof are expressly made
subject to the right of the Pr~esident, in accordance w~ith the pro-
visions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under said Act.
2. Such of the provisions of this Codje as are not required to be
included herein by the Act, may, wTith the approval of the Admin-
istrator, be modified or eliminated in such manner as miay be indi-
cated~ by the needs of the public, by changes in circumstances, or
by experience.

No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.


This Code shall become effective ten days after approval.
App~rove~d CodeC No. 426.
Registry No. 232--02.


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