For sale by the Superintendent of Documents, Washington, D.O. - Price 5 cents
Registry No. 299--51
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COTTON BATTING INDUSTRY
AS APPROVED ON APRIL 21, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
UNIVERSITY11111 OF11111111 FLORIDA111111
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of thre Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF CObMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingh~am, Ala.: 257 Federal Building.
Boston, Muss. : 1801 Custombouse.
Buffalo, N.Y.: Chamlber of Commerce Building.
Charleston, S.C.: C~hamlber of Commerce Building.
Chic~ago, Ill.: Suite 170U6, 201 Nor~th ll'ells Street.
Cleveland, Ohlio: Chamlber of Comm~elrce.
Dallas, T'ex.: Chamber of Commrc~e Building.
Detroir, M~ich.: 801 First National Bank Building.
Houston, Tes.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mlemphis, Tenn.: 220 Federal Building.
M~inneapolis, M~inn.: 213 Federal Buildling.
New Orleans, La.: Room 225-A, Custombouse.
New Y'ork-, N.Y.: T34 Custombouse.
Norfolk, Va.: 406 East Plumle Street.
Philadelphia-, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Battle. Wash.: 800 Federal Office Building.
Approved Code Nlo. 404
CODE O1F ]FAIR COMPETITION
DRY GOODS COTTONS [BAT51CTING INDUSTRY
As Approved on April 21, 1934
CODE OF. FAIR COMPETITION FORt THE DRY GoODS COTTON BATTING
An .application having been duly made pusuant to and in full
compliance with the provisions of TPitle I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Dry Goods Cotton Batting Industry, and
hearings having beenr duly held thereon and the annexed report on
said C~ode containing findings with respect thereto, having been
made, and directed to the President:
NJOW, T'HEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Rtecovery,
pur~suant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6548-A, dated December
30, 1933, and otherwise; do hereby incorporateby 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 Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HIUan rS. JoINSON,
Administrator for Indus~tr~ial Recovery.
Approval recommended :
WV. A. H~ARRIM~AN,
Acting Dliv~ision Adlmini~strator.
54 393 "---482-138- 3~4
REPORT TO THE PRESIDENT
The Wrhite Ho-use.
SIR: This is a report on the Hearing on the Code of F~air Comple-
tition for the Dry Goods Cotton Batting Industry, conducted in
Wrash~igton, D.C., on January 30, 19341.
In accordance with the customary procedure every person who
filed a request for appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
Thie Codle which is attached, was presented by duly qualified and
authorized representatives of the Industry, claiming to represent
90 per cent of t~he volume of the Industry.
GENERAL CHARACTERISIOS OF THE INDUSTRY
The term Dry Goods Cotton Batting Inldustry includes thle mnanu-
factur~e of carded or gar~netted cotton or other fibre into "'batts"',
soldl through the Dry Goods Trade and similar channels for the
mnanufactuire of comforts, quilts, pads, pillows, and similar articles
for miscellaneous household uses.
Th~ere are 22 manufacturers in the Industry, the majority of which
are comp1Iaratively small a~nd ares located in towns of relat~ively small
Emplloymllent. in this Indlust~ry has increased nearly 43% over the
total employmeFnt in 1929, so that the Industry is now employinmg
about. 300O mocire men than it dlid in that period. It is felt by the
Indlustry~l tha-t this increase in the rate of emnploymlent is due to the
opera~ftio~n of t~he temlporaryi Code for the IndustryI oe~r t~he latter
part. of the y~ear 1933.
It is repor)"t~d thatt during thle first. 6 mlonthls of 1933 wag~es had
b~eeni redluced approximateel y 25 2 below the scale of 1929. During
the latter p~art of 193:3, howr\ever,, w\ages advanced to a figure mi excess
of the wages paid in 19"9. It. is; felt that this incr~ease is due t~o t~he
operation of thet temlpojraly Codle. Thus, for t~he Industry there
has been an incrtease of app)roximaltelyV $233,000.00 in payrolls.
PROUSIONSf OF THE CODE
The labor provisions of this Code are similar in many ways to
those lof the Code of Fair Competit~ion for the Bedding Industry,
because of the fact that many of the manufacturers of dry goods
cotton batting are also manufacturers of products which go into the
mlanu factu re of mattresses.
Thle minimumm wage in the northern section of the United States
is 3'21..6 per hour while the minium wage in the southern section is
304 per hour. This rate is similar t~o that established in the Code of
Fair Competition for the Cotton Textile Industry.
Provisions relative to maximum hours call for a work week of
40 hours with a maximum of 48 hours for 8 weeks during any 6
months period, as a peak period is necessary to the Industry in view
of the seasonal demand with which this ICndust~ry must contend.
This Industry requests but one Trade Practice. This Trade Prac-
tice prohibits the use of second hand materials, which hias been detri-
mental to this and similar Inrdustries for many years.
The Deputyv Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all thne proceed-
ings ~n hin this matter;
(a) Said Code is well designed to promote thle policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate anld foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, byT eliminat-
ing unfair competitive practices, by promnoting- the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) Th Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsectiont (a) of "Section 7,, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaidt
Industry; and that said association imposes no equitable restrictions
on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) Thle Code is not designated to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, the Code has been approved.
Henc S. JOHNuso,
Arm.L 21, 1934.
CODE OF F'AIR COMPETITION FOR THE DRY GOODS
COTTON BATTING INDUSTRY
To effectuate the policies of Title I of the N~ational 'Industrial Re-
corer~y Act, the following provisions are established as a Code of
Fair Competition for the Dry Goods Batting Industry, and shall be
the standard of fair competition for this industry and shall be bind-
ing upon everyr member thereof.
1. The term Dry Goods Cotton Batting Industr~y or Industry ")
as used her~ein means and includes thie manufacture of garnetted
and/'or carded cotton or other fibre usually put up in the form of
paper-banded and/or paperi wrapped "' batts sold primarily to t~he
Dry Goods; Trade and through similar channels for consumption by
the ultimate purchaser in the making of comforts, quilts, pads, pil-
l(ows and other similar articles, and for miscellaneous household uses.
f2. The term "Association ", as applied to the Industry means the
National Association of Dry Goods Cotton Batting Manufacturers.
.3. The termi "' Secretary '! means the Secretary of such Association.
4. The term member of the Indlustry includes but without limi-
tat.won any individual, partnership, association, corporation or other
formn of enter~prisre engaged in the Industry~ as above defined, whether
as an employer or on his owfn behalf.
5. The ter~m employees as used herein includes anyone engaged
in the above defined Indtustryv in any capacity receiving compensation
for his services irrespective of the nature or method of payments of
6. The t~erm "' emuplore~r "' as ulsed herein includes anyone by whom
any such emnployree is compensated or employed in this Industry.
7.The terms "' President. ", "'Act ", and "LAdministra~tor ", as used
hlerein shall mean respect~ively, the President of the Unitedl States,
Title I of the Nationail Indust~rial Recovery Act., and the Admninis-
trat~or for Industrial Recovery.
1. NJo employee shall be permitted to wrork in excess of forty (40)
hours~ per week except that for eight (8) weeks during any six (6)
months' period employees may be permitted to work forty-eight (48)
hours per week. The foregoing provisions do not apply to:
(a) Outside salesmen, or employees engaged in emergency mainte-
nance or emergency repair work or persons employed in a, managerial,
supervisory or executive capacity who earn not less than thirty-five
dollars ($35.00) per wveek.
(b) F'iremnen, engineers, cleaners, truckr drivers, and shipping
crews, who mlay be permitted a 10% tolerance over the hours specified.
(c) W~atchmen who shall not be permiitted to work more than
fifty'-six (56) hours a week.
1. No employee shall be paid at less than the rate of thirtly-two
and one half cents (321/25) per hour in the Northern Section of
the United States, or thirty cents (30e) per hour in the Southern
Section of the United States.
(a) The Southern Section is definell as comprising North Caro-
lina, Sout~h Carolina, Florida, G~eorgia, Alabama, Tennessee, Mis-
sissip~pi, Atlrkanlsas, Louisiana, Oklahoma, Texas, and Virginia; and
the NJorthern Section is defined to include all other States in the
United States proper including the District of Columbia.
(b) Learners without previous experience in. this Industry may
be employed at a minimum wage rate of eighty per cent (80%0) of
the minimnum wage rate prescribed by this Article provided that the
period~ of learningr shall be not more than thirty (30) days and
provided further, that the number of such learners shall, at no
tieeceed five per cent (5%i') of the total employees in any par-
ticua plant in this Ind ust ry ; provided further, that no employee
may serve more than one learning period within, this, above Indulstryr.
2. A. person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmity, may be employed on
light work at a wage belowP the minimum established by this Code, if
the employer obtamns from the State authority, designated by the
U.S. Department of Labor, a certificate authorizing such person's
employment at such wages and for such hours as shall be stated in
t~he certificate. Such authority shall be guided by the instructions
of the U.cS. Department of Labor in issuing certificates to such, per-
sons. 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 mnaximumn hours of work for such employee.
3. This A1Lrtile establishes minimum rates of pay, which shall
apply irrespective of wcvhether an employee is actually compensated
on a time-rate, piecewlcork, or other basis.
4. Rates of pay mn excess of the mlinimluml hereinbefore prescribed
shall be equitablyr adjusted in. order to preserve equitable differentials.
All such adjustments made since June 1, 1933 shall be reported
to thre Code Authlority.
AQlrrIca V-GCENERAL L-ABOR PROIVISI[ONS
1. On and after t~he effective date of this Code no employer shall
employ anyone under thie age of sixteen (1.6) years, nor anyone
under eighteen (18) years of age at operations or occuplat~ions haz-
ardous in nature or dangerous tol health. In any State an employer
shall be deemed to have compliedt with this provision if he shall
have on file a strtificate or permlit duly issued by~ the Authority in.
suchl State emnpoweredt to issue em~ployment or age certificates or
permits showing that the employee is of the required age.
2. In compliance with Section 7 (a) of Title I of the Act:
(a) Employvees shall have thle right to organize and bargain col-
lectively 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 mn self-organizat~ion or in other concerlted activities for t~he pur-
pose of collective bargaining or other mutual a.id or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
framn from jommig, orgamizmg, or assisting a labor organization of
hiis own choosing, and
(c) Employers shall comply with the maximnum hours of labor,
mninimIum rat~esr of pay, and other conditions of employment,
approved or prescribed by the President.
3. Every employer shall provide for the safety and health of all
employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within siix months after t~he effective
date of the Code.
4. No employer shall reclassify employees or duties of occupations
performed or engage mn any subterfuge for the purpose of defeating
the purposes or provisions of the Act or of this Code.
5. Each employer s hall post in conspicuous places full copies
of Articles III, IV and V of this C~ode, and such other Articles
and in accordance with su~ch regulations as are required by the
ARTICLE VI ADMII N I STRATIO N
1. To further effectuate the policies of the Act, a Code Authority
representing sAid IndustIry is hereby constituted to cooperate with
the Admlinistrator in the administration of this Code.
(a) The. Code Authorityv shall consist of five (5) members, four
(4) members t~o be elected by and from the members of the Associa-
tion, and one (1) to be elected by and from the non-mnembers. The
method of election shall be approved by t~he Administrator.
(b) The Aldministr~ator mlay appoint not more than three (3)
members w~it~hout. vote or expense to the Industry to represent the
Administlrator on t.he Code Authorityv.
(c) The Code Authority shall be elected within twenty (20) days
after the approval of this Code.
(dT) If t~he representative of t~he non-member group to the Code
Authority is not elected within thirty (30) days after the approval
of the Code, the Board of Dir~ectors of the Association may elect a
member to the Code Authority to fill that place, subject to t~he ap-
proval of the Administrator.
2. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall:
(1) Impose 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, together
with such other information as to membership, organization, and
activities as the Administrator may deem ne~ceslsary to effectuate the
purposes of the Act.
3. In order that t~he Code Authority shall at all times be truly
representative of the Industry and in others r~esipects comply w~ith the
provisions of the Act, the Admninistrator miay prescribe such hearings
as he may deem proper; and thereafter if he shall find that. the Code
Authority is not truly representative, or dloe~ not in other respects
comply with the provisions of the Act, may r~equliree an appropriate
modification in the method of selection of t~he Code Aiuthor~ity.
4. Members of the Industry shall be entitled~ to participate in and
share the benefits of the activities of the Code Authiority and to par-
ticipate in the selection of the members thereocf. as provided in. See-
tion 1 (a) of this Article, by assenting to anid compllying with the
requirements of this Code and sustaining their reasonable share of
the cost a.nd expenses of its administration. Such reasonable share
of the expenses of administration shall be determined by the Code
Authority, subject to approval by the Administratorl, onI th~e basis
of volume' of business and or such other faCtors~ as may be deemed
5. Powcers anld Duties of th~e I'ode Aulthority.--T he Code Au-
thority shall have: the: following further. powers and duties:
(a) To insure t~he execution of the provisions of this Code~ and to
provide, subject to rules and regulations e~stablishedl by the Admllinis-
trator, for t~he compliance of t~he Ind-ustry wIith~ the provisions of thre
Act; provided, however, that. this shall not be construed to deprive
duly authorized governmental agencies of their power to e~nforlce
the provisions of this Code or of the Act.
(b) To cooperate with the Admlinistr~ator in mlakilg investigations
as to the functioning and observance of any prov~isionls of this Codle
at its own instance or on complaint of any person affectedl and shall
report the same to the Administrator.
(c) To make recommendations to the Admiinistrator for the co-
ordination of the administration of this Code with suich other codes,
if any, as may be related to the Indlustry.
(d) Subject. t~o the approval of the Admninistratorl, to assess upon
members of t.he Industry an equitable and proportionate share of the
reasonable cost and expenses of maintaining: the Code and the activi-
ties of the Code Authority, which amnount shall be: paid by each
member of this Industry.
() To obtain from memnbersj of the Indlustry such inlformantion
reports as are required for the administration of the Code and
in addition to information required to be suibmittedl to any\ Code
Auth~orit~y, all or any of the perseons subject to this Code shall "furnish
such statistical information as the Administr~ator may deemi necessary
for the purpose recited in. Section 3 (a) of the Act to such F~edel
and State agencies as t~he Admninistrator masy dlesignaete; nor shall
anything in any Code relieve any person of existing obligations
to furnish reports to government agencies. 1Vo individual reports
shall be disclosed to any other member of the Industry or any other
party except. to such governmental agencies as mlay be d~iretctd by
(f) To present to the Administrator from timle to time recomn-
mendations for modification of this Codle, based on conditions in
the Industry as they may develop which will tend to effectuate thie
operation of the provisions of this Code.
(g) To cooperate with the Administ~rator in regulating the use
of any National Recovery Administration Code Insignia solely by
those members of the Inaustry who are complying with this Code.
6. Any member of the Industry shall have the right to appeal to
the Admlinistrator, under such rules and regulations as he may pre-
scribe, in respect to any rule, regulation, or other course of action,
issuedl or taken by the Code Authority.
7i. Nothing contained in this Code shall constitute the members
of the Code Authority or members of the Association participating
in the activities of the Code Aulthority partners for any purpose.
Nor shall any member of the. Code Authority or members of the
Association participating' in the activities of the Code Authority be
liable in any manner t~o anyone for any act of any other member,
oflicer age~nt, or employee of the Code Authority hereinbefore men-
tioed.Nor shall any member of the Code Authority exercising
reasonable diliga9ence in t~he conduct of his duties hereunder, eb:e liable
to anyone for any action or omission to act under this Codecp
for his own willful misfeasance or nonfeasance.
8. If the Administrator shall determine that any action of a code
authority or any agency thereof may be unfair or unjust or con-
trary~ to the public interest, the Admimistrator may require that such
action be -suspended to afford an opportunity for investigation of the
merits of such action and further consideration by such code au-
thority or agency pending final action which shall not be effective
unless the Administr~at~or ap roves or un~less he shall fail to disap-
prove after thirty (30) days' notice to himn of intention to proceed
with such action in its origmlal or modified form.
AmrrcLE VTLII-U-TNFAIR TIRADE PRACTICES
1. The following practice constitutes an unfair method of comnpe-
t~ition for members of thme Dry Goods Cotton Batting Industry and
-(a) The use of second-hand or previously used cotton material
or product and/or kindred material in the manufacture of a product.
Previously usei '" cotton and kindred materials is defined to mean
any such materials which have been processed and used in thme mnanu-
facture of any finished product which has been used by a consumer.
This provision shall not prohibit the use of the by-products pro-
duced in the manufacture of new fabrics nor material reclaimed from
new fab~rie, but it shall prohibit the use of second hand material
such as may be r~ecla~imed from old comforters, .mattresses, old bed-
ding or upholstery of any kind.
1. This Code and all the provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provisions
of subsection (b) of Section 10 of the National Industrial Recovery
Act, from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act thereof.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to ~be based upon application of the Administrator and
such notice and hearing as he shall specify, and to. become effective
on approval of the Administrator.
oprovisions in this Code shall supersede, any State or F'ederal
law which imposes more stringent requirements on employers as to
age of employees, wages, hours of w~ork, or as to safety, health, or
sanitary conditions, than are imposed by this Code.
ARTICLE X--MON;OPOLIES, Ere.
No provision of this Clode shall be so app~lied as to permit monop-
olies or monopolistic practices, or to elimiinate, oppress, or discrimi-
nate against small enterprises.
ARTICLE ?i--SPECIAL AGRKEEMENTS
Reasonable notice of the submission of any agreement authorized
to be submlittedl to the Pr~esidlent by virtue and under authority of
Section 4 (a) of the Act shall be given to the Code _Auth~ority of this
Industry by any mlember of the Industry who proposes to make such
ARTICLE XII-EFFZECTna' D)AT
This Code sh~all become effective on the second Monday after its
approval and shall continue inl effect. during the period of the
National Indulstrial Recovery A8ct.
Approved Codle No. 404.
Regaistry No. 2~9--51.