NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIlR COMPETITION
AS.APPROVED ON NOVEMBER 27, 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cent
Approved Code No. 143
Registry No. 232--1--04
1. Executive Order
2. Letter of Transmittal
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Approved Code No. 143
CODE OF FAIR COMPETITION
WOOL FELT MAN UFAC TURNING INDUSTRY
As Approved on November 27, 1933
An application having been duly made, pur~suant to and in full
compliance w~ith the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the W~ool F'elt Mh~anufacturing Industry,
and hearings having been held. thereon and the Administrator hav-
ing rendered his report containing an analysis of the said -code of
fair competition, together with his recommendations and findings
with respect thereto, and the Ad~minist~rator having found that thle
said code of fair competition complies in all respects with the per-
tinent provisions of title I of satid act aznd that the~ requirements of
clauses (1) and (2) of subsection (a) of section 3 of the said act
have been met:
NOW, THEREIFORE, I, Franklin D. Roosevelt., President of the
United States, pursuant to the authIority vested~ in mze by title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt. and approve the report, recommendations,
and findlingas of the Adlministrator and do order that the said code
of fair competition be and it is hereby approved.
FiRANKLINJ D. 1ROOSEVELT.
Approval recommended :
HUGH S. JOHNSON,
Ad mnin istrator.
THE WarrIE HOUSE,
NYovem~ber 7, 1933.
NOV'EMBER 20, 1933.
The Wh~ite House.
SIR: Thins is the report on the Code of Fair Comipetition for the
Wool Felt Mfanufacturing Industry as proposed by the United States
Felt M~anufacturers Institute.
The hearing was conducted in Washington, D.C., on November 15,
1933. Every person who requested an appearance was freely heard
in accorda~nce w~ithl statutory and regulatory requirements. The code
was presented by duly qualified and authorized representatives of
the industry complying with the requirements as representing 100
percent of th~e volume of business.i
DESCRIPTION OF IN'DUSTRY
The Wool Felt M~anufacturing~ Industr~y is one of the numerous
examples of the differences existingr among the various subdivisions
of the textile indlustry. The prepa~trtor stag~es of felt manufac-
turingr closely followT th~e samne p~oc~esses as th~e mannufacture of clot.h-
ing materials and other woven wool goods. The first break in the
similarity of operations occurs at the ca~rdingr machine. The felt
manufacturers takes the full-width webs of fibre from the card and
builds these into a mnattresslik-e formation. When the approxim~ate
finished weight is obtained, the entire mass is steam saturated. Oscil-
lating and vibrating- plates then tangle the fibres, making a matted
layer. At this stage the material lacks strength, but may be dried
and used for a certain limited number of purposes, mainly insulation
and souind deadening.
The next. m-anufacturing stage is fulling, which is thle tr~ue felting
p~roces~s. AJ lubricating agent, sulch as soap, is introduced and this,
combinedl with controlled heat andi moisture, shrinks the fabric. The
operation is p~erformedl inn a, pulling mill, wh~ich~ is a large wooden
bowl equiipped wit~h vibrating hammners. After fulling, the fabric is
scouredl, dyed if color is requir~ed-, andl then dlriedl and finishedl.
The thickness of a piece of finishned felt mayS range from one
th~irty-second inchl~ to three inches, while it may varyr in weight fromt
three ounces to 65 pounds per squa~lre yard~c. In the same manner,, the
price range per square yard is from ten cents to $150.00, while on a
pourtndage basis, it ma~y v'ary fromt 7 cents to $5.00. Als m~ay be
3udgrel "from these extreme varliations in manufacturing possibilities,
the use of the finished product. is equally varied.
1Felt is used in somne way by practically all industries, either for
mechanical purposes during the process of mannufacturing or as a
comnponent part of a finished article.
Thep industry' is not large andl at the present time is com~posed! of 13
firms emnployinig approximatel y 1,600 wTorkers. Since 1998 thle indlus-
try' hafs sufferedl a severe contraction in sales. In thant y'ear, sales
amounted t~o 17%I million pounds, wshichl have declined to slightly
more than 5 million pounds at the present. During this period the
productive capacity of the indlustryl has remained conlstant at 24
The industry proposes to pay' a minimum wage of 35 cents per
hour. Hours of labor are limited to 40 hours per week and eight
hours in any one day. Ai tolerance of two hours per day will be
allowed for certain employees suchi as hardleners, fullers, washers,
extractors, and dlryer~s who will receive timne and one third compen-
sation for the excess hours wTorked.
This flexibility is to prevent any possible spoilage of materials
during wet or chemical processes.
The provisions for the administration of this code are capable of
providing the N.R.A. and the WVool Felt Mlanufacturing Industry
w~it~h sulffieient data to r~ecomnmend any modifications or amendments
that may be indicated by experience.
I find that the code complies in all respects with the pertinent
provisions of Tit~le I of t~he Nat~ional Inlusrtr~ial Recovery Act,
including without lim~itation, subsection (a) of Section 7, and sub-
secrtion (cb) of Section 10 ther~eof.
The United States Felt Mianufacturers Institute is duly represen-
tative of the Wool Felt Mianufacturing Industr~y and the b~ylaws-of
this association provide no inequitable restriction upon membership.
Accordinlglyv, I recommends the approvl of the Code of Fair Com-
petition for the: Wool Felt. Manufacturing Industry.
Respect fully submitted.
HUGH S. JOHNSON,
WOOL FELT MANUFACTURING INDUSTRY
ARrlICLE I PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Compet~ition for the Wool Felt Manufacturing industry, and
shall be the standard of fair competition for such industry and shall
be bindling upon every member thereof.
1. The term "" wool felt ", as used herein, is defined to mean a non-
woven material composed principally of wool or wool and cotton,
manufactured by a hardening and fulling process.
2. The termn industry ", as used herein, is defined to mean the
manufacture or original sale of wool felt, whether as a final process
or ns a part of a larger or further process, and/'or the preparation of
wool felt for use.
3. The term "'employee ", as used herein, includes anyone engaged
in the industry in any capacity receiving compensation for his servr-
ices, irrespective of the nature or method of payment of such
com pen~sat ion.
4. The term employer ",? as used herein, includes anyone by whom
any such employee is compensated or employed.
5. Thie t~erml '' member of the industry includes anyone engaged
in the industry as above defined, either as an employer or on his own
6. The term Institute ", as usedl her~ein, is defined to mlean the
United States Felt MaInurfacturer~s Institute, or its successor.
7. Thie terms "' Prcsident !', "Act ", andl "Administrator as used
herein shall mean, respectively, the P~resident of the Unit~ed States,
the Natiolnal Indulstrial Recovery~ Act, andl the Admiinistrator of
Title I of said Act.
1. No emiployee, except execeltives and those engagedl inl a man-
agerial capacity receiving $35 per week or more, outside, salesmen,
andl watchmnen, and2 except as hereinafter provided for shall be per-
mittedl to worrk in excess of forty (40) hours in any one week or
eight (8S) hours in any 24-hour period.
2. Repair andl maintenance crews, electricians, engineers, firemen,
and shipping andi outside crews may~7 work a toleranice of 10%b per
w-eekc in excess~ of thle aforesaid mlaximuml hours; provided that time
and?! one fthird shall1 be paidl for the excess hours so worked.
CODE OF FAIR COMPETITION
3. The maximum hours fixed in the foregoing section shall n~ot
apply to any employee on emergency maintenance or emergency re-
pair work involvingr breakdowns or protection of life or pr~operty,
but in any such special case at lest time and one third shall be paid
for hours worked in excess of the mnaximumn hours herein provided.
Emergency hours worked shall be reportedly monthly to the Code
4. Hardeners, fullers, washers, extractors, andl dryers may work a
tolerance of two (2) hours per day in excess of the aforesaid maxri-
mumn hours per day ; provided that time and one third shall be paid
for the excess hours so w~orkedl, and pirovidled, further, that the total
amount of excess hours worked per week by such employees of any
employer shall not exceed 10S' of the total mian hours (exclusive of
such excess hours) wFor~ked per week by all productive employees of
ARTICLE ITY- VAGES
1. No employee shall be paid at less thnn the rate of 35-1 per hour.
2. This Art~icle establishes a. minimium rate of p~ay, regardless of
whether an emnployee is comp-ens-atedl on a time rate, piecework, or
3. There shall b>e an eiuit~able adljus~tmelnt of th~e wages of em-
ployees receiving above thle minimum herein prescribed, to the end
that, so far as mnay be equitable, the different~ials wh~ich~ nowc exist
between the w~age rates paid to skiilledl workler~s andl those paid to un-
skilled labor shall be maintainedd,
4. Nothing contained. in Article IV or Article V hierein shall be
construed to 1reuce the wa~ges or hocurs of labor for employees
wh2ose wages or hours of labor are establishied for specific projects
by competent governmental aut~hor~ityl acting in accordance with
the law, or whosre wages or' hours of labor are establis'hed byTv Ilabor
agreements now in force.
ARTICLE Y7-GCENERALL Leonjr Pnov\isio~s
1. No person under sixteeni (16) years of agerf shall be emiployed
in the industry, nor aninone under eighteen (18) years~ of nag at
operations or occupations hazardous in nature or detrimental to
health. The C~ode Author~ityv shall submlit to the Admninistrator
before Jannuary 1, 1934, a list, of such ocucupations whlich, upon his
approval! shall be deemedl hazardous in nature or de~tr~imetlln to
health within the meaniing of this section. In any State an e~m-
player shall be dleemedl to have compglied with th~e age provisions of
this section, if hie shalU have onl file a cer~tificate or pcr~mit duly issu~ed
by t~he aulthorityg in such .Sltte empowe~red to~ issue employment or
age certificates or permits, showing thant the employee is of thle
r~eq u ired age.
Employees shall hiave the r~ight to organize and banrgn ini colleec-
tively through r~epresenrttaties of their own chloosing, and shall be
free from the interference, r~estr~aint, or coercioni of emnployers of
labor, or their eagnt, ;in the detsignatlonl of such representat i ves
in self-organization or in other concertedl activities frteproeo
collective bargaining or other mutual aid or protection.
3. No emlnIoyree and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
fromi oiningr orgamz~ing,_ or assistmlg a labor orgammzation of his own
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
5. Within each state this Code shall not supersede any laws of such
SCtate impoi-rngr mren stringepnt requiirements on employers regulating~
the age of employees. wages, hours of work, or health, fire, or genera
working conditions thann under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as t~o defeat the purposes of the Act.
7. Each employer shall post in conspicuous places full copies of
8. To prevent any improper speeding up of work (stretch-outs),
no employee in the industry shall be required to do any work in
excess of the practice as to the class of work of such employee pre-
vailing on July 1, 1933, unless such increase is submitted to and
approved by the Administrator.
ARTICLE VI -ADMINISTRATI~ON
1. To effectuate further t~he policies of the Act, a Code Authority
is hereby designated to cooperate with the Administrator in the ad-
ministration of this Code. The Code Authority shall consist of five
r~epresentatives of the industry$ elected by a fair method of selection,
to~ be approved by the Administrator, and of not more than three
members (without vote) appointed by the Administ~rator. Such
agency may present to t.he Administrator recommendations based on
conditions in the industry as they may develop which will tend to
effectuate the operation of the provisions of this Codie and the policies
of the Act.. Such recommendations, when approved by the Adminis-
trator, shall have the same force and effect as any other provision of
2. Suchi agency is also set up to cooperate with the Administrator
in making: investigations a.s to the functioning and observance of any
provisions of this Code, at its own instance or on complaint by any
person affectedl, and to report the same to the Administrator.
3. Any member of the industry may become entitled to participate
in the endeavors of the Institute relative to the administration of,
revisions of, and additions to this Code (a) by becoming a member
of the Institute and paying the dlues and assessments thereof, or (b)
by paying to the Institute its equitable pro rata share of the expenses
of administering the Code (suchi pro rata share to be determined on
the basis of labor employed). The Institute shall defray the expenses
incurred by the Code Authority.
ARTICLE VII REPORTS AND STBrrsales
1. WVith a view to keeping the President informed as to the obsery-
ance or nonobservance of this Code of Fair Competition, and as to
whether the industry is taking appropriate steps to effectuate the
declared policy of the Act, each member of the industry will furnish
duly certified reports to such certified public accountants as the Code
Authority may designate. These reports shall be in subsltanc and.
in .such form as the Code Authority may requlire. Except as other-
wise provided under the Act, reports fu~rnishled in. accordance with
this Code shall be c~onfidential, andi thlat. data of one employer shall
not be revealed to any other employer; pr~ovided, however, that for
the purpose of enfor~cing this C~ode the Code Authority, through its
duly authorized r~epresentatives, shall have access to such portions of
said reports as are pertinent to such enforcement.
2. Every member of th~e industry shall furnish to any gover~n-
mental agencyr or agencies designatedl by the President, such statis-
tical information as the President may, from time to time, deem
necessary for the purposes recited- in Section. 3 (a) of the A~ct; and
any reports andl other information collected and compiled by the
Code Authority, as heretofore prIovidedl, shall be transmitted to
such governmental agencies as the Pr~esident may directf
ARrICLE Y111--UNF~Im TRADE PRACTICES
For all purposes of the Code thle acts d~escribed in this Article
shall constitute unfair practices. A~ny mnemlber of the industry who
shall directly, or indirectlyr through any' officer, employee, agent or
representative, knowingly use, employ! or permit to be employed, any
of such unfair practices shall be guilty of a violation of the Code.
1. No member of the industry' shall use advertising whetherr
printed, radio, display or of anly other natu~e.) or other .representa-~
tion which is inacurate in anymtrlprtclrom n wa
misrpreentanycomodiy (ncludling its use, trade mark, grade,
qyuality,? quantity, origin, size, su~bstarnce, character, nature, finish, ma-
terial content or Rreparation. or oth~er specification thereof) or credit
terms, values, pohecles, services, or the naturel1 or form, of the business
2. No member of the Industry shall give, permiit to be given,-or
offer to give, anythiigr of value for the purpose of influencinglr or
rewarding the action Yof any employee, agent, or representative of
another in relation to the business of the e~mploer of such cimployee
or the principal of such agent without the k~nowledg~e of such em-
ployer or principal, provided that nothing herein shall prohibit the
free and generl~n distr~ibution of articles used solely for advertising.
3. No member of the Industry shall withhold from. or insert in
any quotation or invoice any statement that mankes it inaccurate in
any material particular.
42. No member of the Industry shall secLretly offer or mnakze any
paym'nent or allow~ance of a rebate, r~efunld, commission, crledit,
unearned discount or excess nlowa~-nce, w-hether in thle for~m of
money or otherwise, for the purpose of influencing a sale, nor shall
a member secretly extend to any customer any special service or
privilege not extendeld to all customers of the same class.
5. No member of the Indus-tryr shall attempt to induce the breach
of an existing contract between a co~mpetitor and his emplyloyee or
customer or source' of supply; ,nor shall any such ml~nTembe interfere
with or obstruct the performance of such. contractual duties or sera-
ices. Nothing in thlis rule shazll qualify Section '7 (a) of the Naltional
Indurstrial Recoer~y Act or ob1struLct the fre~e exercise of the rights of
collective bargarininp therein guaranteed.
6. No member of the industry shall repudiate a contract entered
into in good faith when t~he purpose of such repudiation is to create
for such member an unfair price advantage.
ARTICLE IX --110NOPOLIES
No provision of this Code shall be so applied as to permiit monop-
olies or monopolistic practices or to eliminate or oppress small enter-
prises or to discrimiinate against them.
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 Act, from time to time, to can-
cel r moifyany order, approval, license, rule, or regulation issued
the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
2. Such of the provisions of this Code as are not required by the
Act to be included herein may, with the approval of the President
of the United States, be modified or eliminated as changed circum-
st~ances or experience may indicate. This Code is intended to be a
basic code, and study of the trade practices of the industry will be
continued by the Code Authority with the intention of submitting
from time to time additions to this Code applicable to all employers
in the industry, and supplemental codes applicable to one or more
branches of the industry; such supplemental codes, however, to con-
form to and be consistent with the provisions of -this Code as now
constituted or hereafter changed.
1. After notice to members of the industry, the Code Aut~horityv
may submit recommendations with respect to restrictions on selling
below cost, the disposition of substandard merchandise, the publica-
tion and listing of prices, and the. establishment of standard selling
terms for the industry; such recommendations, when approved by
fhe Administrator, to have the same force and effect as other pro-
visions of this Code.
2. The Code Authority shall secure current in formation concerning
the competition in domestic markets of impor~lted felt products, and
if it shall find that such products ar~e being impi~orted into the Unit~ed
States in substantial quantities or incr-eas~ing ratio to domestic pro-
duction, and on such terms or under such condlitionis as to render
ineffective or seriously to endanger t~he maintenance of this Code. it
shall complain to the President pursuant to the: provisions of Section
8 (e) of the National Industrial Recovery Act and petition for suit-
able restrictions on the importation of such felt products.
ARTICLE XII EFFECTIVE DATE
This Code shall become effective on the second Mfonday after~ its
approval by the President.,
Approved Code 1%o. 1413.
Registry No. 232-1-04.
UNIVERSITY OF FLORIDA
3 1262 08486 8057