NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MACHINERY AND ACCESSORIES
DISTRIBUTING TR ADE
AS APPROVED ON APRIL 4, 1934
UNIV. OF FL LIB.
DOCU PNTS DEPT.
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 380
Registry No. 1333--12
WE DO QUR PART
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, 1Yashington, D.C., and by district o~ices of the Bureau of Foreign
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Approved Code No. 380
CODE OF FAIR COMPETITION
USED TEXTILE MACHINERY AND ACCESSORIES
As Approved on Apr~il 4, 19341
APRe\Norm CODE OF FA~IR COMPETITION FOR THE USED TEXTILE
RlACHINERY AND ACCESSORIEs DISTIulBUTING TRADE
An application having been duly made pu~rsuan to and in full
compliance wsith the provisions of Title I of the KNtional Indus-
trial Recovery Act, approved June 16, 1933, for approval of a Code
of Fair Competition for the Use~d Textile M~achinery and Accessories
DListributing Trade, and hearingrs having been duily held thereon and
the annexed report on said Codle containing findings~ with respect
thereto, having been made and dir~ectedl to th~e Pres~ident:
NOWV, THEREFORE, on behalf of the President of thre United
States, I, Hugh S. Johnson, Admlrinistrator for Industrial Recov'eryh
pursuant to authority vested in me by Executive Orders ofth
President, including Executive Order No. 65413-A, datedl Decern-
ber 30, 1933, and otherwise; do hereby incorporate by preference said
annexed report and do find that said Cod~e comp~~lies in all respects
with the pertinent provisions and will promote th~e policyT and pur-~
poses of said Title of said A~ct; and d~o her~eby order that said Code
of Fair Complletition be and it is hereby approved.
HUGH S. JOHNSON,
A ChaInII istrlatol f'or /Industrall'X Recovery.
Approval recommended :
A. R. GLANCY,
April' q, 1934.
REPORT TO THE PRESIDENT
The Wht~l~e House.
SIR: This is a report on the Code of Fair Competition for the
Used Textile M~achinery and Accessories Distributing Trade, as re-
vised after a Public Hearing held in Washington on the 19th day of
March in accordance with the provisions of the National Industrial
PROVISIONS AS TO HOURS AND WAGE8
Employment is limited to 8 hours a day and 40 hours and 6 days
a w~eek with the exception of those employees engaged in emergency
maintenance or repair w-ork or on emergencies occasioned by the
necessity for services of specially skilled employees who cannot be
replaced. A tolerance of 8 hours a weeke for 6 weeks in any 26 weeks'
period is permitted. Ove~rtime in excess of 8 hours in any 24-hour
period or in excess of 40 hours in any 7-dlay period shall be paid for
at onie and onie-half times t~he regular rate.
A miinimnum w~age of 40 cents an hour is established except in Vir-
ginlia, North Carolina, South Carolina, Georgia, Florida, Alabama,
M~ississippi, Texas, Louisiana, and Tennessee in which states a 35-cent
rate is permlitted.
Femllne anid male employees will receive the same rate of pay for
subs~tantially the same work.
Child Inbor is prohibited by the standard 16 and 18 year provisions.
ECONOMIC EFFECT OF THE CODE
Thlis Tradec, comprising 81 companies, shows a gain in employment
uinder the President's Re-employment Agreement and the provisions
of this Code from about 2892 employees in 1932 to about 429 employees
or an increase of approximately 52%~.
Th~e investedl capital is aipproximately $1,400,000.00, and the in-
erease in sales from about $7,4100,0)00.00 in 1932 to about $9,400,000.00
in 1933 is approximately 27%1. Based on reports of the first two
months of 1934 a further increase of 35%0 is estimated.
FTN DI NGs
The Deputy Adlministrator in his final report to me on said Code
havringi found ns herein set forth and on the basis of all the proceed-
ings in this matter :
(a) Saidl Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and 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 cooper~ative action among t~he trade. groups,
by inducing and maintaining united action of labor and mnanage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
psible utilization of the present productive. capacity of industries,
avoiding undue restriction of production (except as may be tem-
por~arily required), by increasing the consumption of industrial and
agricultural products through incrensmng purchasing powTer, by re-
ducing and relieving unemployment! by imp~rovingr standards of
labor, and by otherwise rehabilitation indlustry.
(b) Said Industry normally employs not more thanl 50,000 emp-
ployees;; and is not classified byj mie as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of saidl Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-u
section (b)o Section 10 thereof; and that th~e applicant groupi
an industrial association truly representative of the aforesaid ind-
try; and that said association imposes no inequitable restrictions on
admission to membership therein.
(d) The Code is not designed to and w-ill not permrit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not elimiinate or oppress
small enterprises and will not operate to dliscriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of thle right to be heard prior to approval of said
For these reasons, this Code has been approved by mne.
HUGH S. JoHNSON,
Ad insistt rat or.
APnRL i, 103-1.
CODE OF FAIR COMPETITION FOR THIE USED TEXTILE
M~ACHINERY AND ACCESSORIES DI STRI BUTI NG
To effectuate the policies of Title I: of t~he National Industrial
Recovery Act., the following provisions ar~e established as a Code
of Fir competition for the Used Textile M~achiner nAcsoie
Distributing Trade, andt shall be thie standards o fY fn cesreair competition
for this trade anid shall be binding~ upon every member thereof.
The following termslu are used herein writh the mieanings set forth
SECTION 1. "' Usedl Textile ~achinlery and Accessories Distributing
Tradle "' or the '' Te~nde "-th~e sale, exchange, distribution, or pur-
chlase and resale, by othlers tha71 nmanulfactur ler~, of all used machin-
eryv, used accessories andt supplies, commuonly used in all branches
of the textile industry.
SECTION 2. "L EmpIIloylee "'-any.one engaged in the Trade in any
capacity, receiving compensation for his serv\ices. irrIespectivee of th~e
nature or mnethodl of payment of such compensation.
SECTION ;3. '' Empllloer '"-a;nyon~e by whiom any such employee is
compensated or employed-.
SECTION 4. Memb~er of the Tr~ade ?' -anyone enlgagedl in the TIrade
as above defined, either as an emnployer or on his ow-n behalf.
SECTION 5. "A~SSOciationl as used herein mieanis Thie National As-
sociation of Dealers in Use~d Textile Ma~chinery andt Arccessories, an
existing association for the benefit of all miember~s of th~e Trade.
SECTION tj. Presidlent ", "ACt."~, and- "AdqlminiStract or' "'-respec-
tively, the President o~f the Unitedl Sitates, Title I olf the National
Industrial Recov'ery Ac-t, and thec Admrinistrator for Industrial
SECTION i. NO emiployee shall b~e permitted to work more than
forty (40) hours in any one (1) w-eek or six (G) days in any one (1)
week or eight (8) hours in any one (1) day except as herein othecr-
SECTIONY 2. The provisions of this Article shall not apply to per-
sons employed in a managerial, executive or supervisory capacity who
are paid Thirty-Five ($35.00) Dollarse per week or more, or to ouit-
SEcTION 37. Overtime Provisio~ns.
(a) Emergency Over~time. The maximum hours fixed in Section 1
hiereof shall not. apply to anly employee on emergency maintenance
or emergency repair wTork invlolvring breakdowns or protection of
life or property, or on emergencies ocensioned by the necessity for
the services of specially skilled employees which cannot be cared for
by the employment of additional men; but in any such special ca7se. at
least one and one-half (11%!) times his normal rate shall be paid to
each employee for all time wFork~ed in excess of the ma ximurm hours
provided in Section 1 hereof.
(b) Ordinary Overtimne. The maxrimumn hours fixed in Section 1
hereof shall not apply for six (6) weeks in any twenty-six (26)
weeks period during which overtime shall not exceed eight (8) hlours
in any one (1) week. In any such case at least one and one-half
(14%) times his normal rate shall be paid to such emnploy-ee for all
time worked in excess of eight (8) hours in any twenty four (24)
hour period or in excess of forty (40) hours iri any seven (7) day
(c) Sunday and Legal Holiday W~ork. Except to watchmen,
power plant engineers and firemen,, t least one and one-half (11/,)
times his normal rate shiall be paid to each emplloyee for all the time
worked on Sundayrs or legal holidays.
(d) Reporting Overtime. All overtime allowances paid as re-
quired under the provisions of paragraphls (a), (b) and (c) of this
Section shall be reported to the Code Authority and made available
to the Admlinistrator by the Code Aluthor~ity in suchn detail as he may
SECTION -l. Yatclmene may be p~elrmittedl to work not more than
forty-eight (48) hours in any one w~eek nor mor~e than sixe (6) days
in any seven (7) day period.
SECTION 5. No employer shall knowingly permit any employee to
wor~k for any time which when totaled with that already performed
for another employer or employers exceeds the maximum p~ermit~te~d
SECTIION 1. The minimum wage that shall be paid to any employee,
except as hereinafter provided, shall be not less than at tle, rate of
forty (420$) cents per hour.
SECTION 2. The minimum wage that shall be paid to anly employee
in the states of V'irginia, North Caaroina, South Carolina, Georgia,
Florida, Alabama. M~ississippi, Louisiana, Tennessee anid Tcxas shall
be not less than at the rate of thirty-five (359) cents per hour.
SECTION 3. NO ROCOllnting, cleirlC1, Serv100, sales OF other 0000
employee shall be paid less than at the rate of F'ifteen ($15.00) Dol-
lars per week.
SECTION 4. No hourly, daily or full-time weekly compensation for
employees who are paid less than Thirty-five ($35.00) Dollars per
week shall be less than such compensation existing as of Juine 16,
1933; and no employee shall be paid a wage rate which will yield
a less wage for the shorter full-time wreek herein established than hie
could have earned for the same class of wvork for the longer full-
time weeek existing as of June 16, 1933. Wa~ge increases esltablished
under the President's Re-emnployment Agreemlent shall at least be
SECTION 5. This Article establishes a m i ni murm com pensati on
which shall apply irrespective of whether an employee is actually
compensated on a time rate, piece-w-ork, or other basis.
SECTION 6. Female employees per~formling substantially the same
work as male employees shall receive the same rate of pay as male
SECTION 7. Employers shall agree to make pa.ymnent of all wages
at least every two weeks and salaries at least monthly in lawful
currency or by negotiable check. These wFages and salaries shall
be exempt from any charges, fines or deductions, or payments for
pensions, insurance or sickr benefits other than those voluntarily
paid by thle wage ear~ner or required by State law. No employer shall
withhold wages. The employer or his agents shall accept no rebates
directly or indirectly on such wages or salaries. Nothing in this
paragraph is intendied to cover revisions in commissions paid to
salesmen due to allowances or adjustments on sales.
SECTION 8. No employer shall eliminate or restrict established
prac~tices or privl~rege heretofore granted employees.
SECTION 9. No emnployee may be discharged a.nd re-employed at
the samie class of worrk at. a less weekly compensation than he was
previously paid and no employee discharged since June 16, 1933, may
be r~e-emlployed~ at thle samne class of w'ork at a less weekrly compensa-
tion than h~e wras previously paid.
AnnrcLE T- CEN'EIL4L LABOjR PRovisISowS
SECTION 1. No person under sixteen (6I) years of age shall be
employed in the Trade, and no one under eighteen (18) years of
age shall be employed at operations or occupations hazardous in
nature or detrimental to health. In any State an employer shall
be deemed to have comnpliedl with this provision if he shall have on
file a certificate or permit duly issued by the Au~thority in such state
emlpower~ed to issue emnploymlent or age certificates or permits, show-
ing th~at the employee is of t~he required age. Each member of the
Tradelt shall submnit. to thle Code Authorit~y within thirty (30) days
after t~he effective date of this C'ode a list of hazardous occupations,
which shall t~herenfter be: submitted by t.he Code Aulthority to the
Adlm i nist ra tor.
SECTION 2. Employees shall have thle right. to organize and bargain
co~llectivecly through~ repr~esentatives of their own chioosingr, and shall
be free from the interference, restraint, or coercion of employers
of labor, or their agents, in the designation of such representatives
orr in self-organiization or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
SEC'TION 3. RTO employee and no one seeking employment shall be
required as a condition of employment to join any company umion
or to refrain fromr~ joinmng, orgumizing, or assisting a labor organiza-
tion of his own choosing.
SECTION 4. Employers shall comply with the maximum hours of
latbor. minimum rates of pay, and other conditions of employment
approved or prescribed by t~he President.
SECTION 5. No provision in the Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments as to age of employees, wages. hours of work, or as to safety,
health, sanitary, or general working conditions or insurance or fire
protection, than are Imposed by this Code.
SEcTION 6. No employer shall ret-classify emp~loyees or duties of
the occupations performed or engage in any o.ther subterfuge so as
to defeat the purposes or pr~ovisions of the~ Act or of this Code.
SECTION 7. Every employer shall make reasonable provisions for
the safety and health of his employees at the places and during the
hours of their emplooymennt Standards for sjafetyS and health shall
Te submitted to thle Code Aiuthlority by each member of the "Trade
within six (6) months after the effective date of this Code.
SECTION 8. Enclh emnployer shall post and keep posted in ten point
type or larger the full labor provisions of th~is Code, and the name
and address of thle nearest official place where Code violations mnay
be reported, in conspicuious places, readily accessible to the employees
in the normal corilse of their customaryl~ occupnt~ions.
SECTION 9. No employee shall be dismissed by reason of making
acomplaint o)' rgiving evidence with respect to an alleged violation
of this Code.
ARKTIC'LE V~I--A DMINISIhTRATION
To further effectulate the policies of t~he Act, a Code Authorit~y is
SECTION 1. Organlization and constitution of Codle Authorityr:
(a) Thne Code Authority shall consist of not less than ~five (5) and
not more than ten (10) individuals.
(b) Five (5) members (who shall be representative of the three
(3) territorial areas of the Trade as determined by the Association)
shall be elected by the Board of Governors of the Association at a
meeting duly called for that purpose by a membler vote.
(c) If any members of t~he Trade wh1o have complied with See-
tion 4 of this Article VI who are noln-ruembnlers of the Association
desire representation, they m~ay elect. two (2) members of the Code
Authorityv at a meeting dulyr called for that purpose, by Itmembe r vote.
(d) The administrator miay appoint not more than three (3) mem-
bers of the C~ode Authority to represent himn or such interests as he
(e) Each t~radle or industrial association dir~ectlly or indirectly par-
ticip~atinga in the selection or activities of the Cod~e AuthorityN shall:
(1) Impose no inequlitable restrictions oln membership, and (2) sub-
mit to the Administrator true copies of its articles of association, by-
laws, regulations, and any amiendlments when made thereto, together
with such other information as to membership, organization, and
activities as t~he Administatorar may deemn necessary to effectuate the~
purposes of the Act.
(f) In order that the Code Authority~ shall at all times be truly
r~epresentative of the Trade and in other respects comply with the
provisions of the Act, the Adlministrator may provide such hiearings
as he may deem proper, and thereafter if he shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
(g) There shall be a Regional Committee in each territorial area
of the Trade, hereintefore referred to in subdivision (b) of
this section, to assist the Code Authority in administering the Code,
said committee to consist of not mor~e than three (3) members of
the Trade in such area, elected by the members of the Trade in such
SECTION 2. The Code Authority shall have the following duties
and powers to the extent permitted by the Act:
(a) Present to the Administrator recommendations based on con-
dit~ions in the Trade as they may develop from time to time which
will tend to effectuate the operation of the provisions of this Code -
and the policy of the National Industrial Recovery Act. Such ree-
ommendations for amendment and modification shall, upon approval
by the Administrator after such notice andl hearing as he may
specify, become operative as a part of this Code.
(b) M~ake investigations as to the functioning and observance of
any provisions of this Code, at its own instance or on complaint by
any person affected.
(c) Invest~igate andl inform the Administrator on behalf of the:
Trade as to the importation of comnpettitive articles into the United~
States in substantial quantities or in increasing ratio to domestic pro-
duction on such terms or under such conditions as to render ineffec-
tive or serioulyGI ton endanger thle maintenance of this Code, and act
as an agency for making complaint to the President on behalf of
the Trade, under the provisions of the Act, with respect thereto.
(d) Hear andl attempt to adjust complaints in accordance with
law; consider proposals for amendments to this Code and make
recommendations to the Adlministrator thereon.
(e) M~ake rules and regulations necessary for the administration
of this Code, subject to the right of any affected person to appeal
to the Administrator.
(f) To appoint a trade practice committee which shall meet
with the trade practice committees appointed under such other codes
as may be related to the Trade for the purpose of formulating fair
trade practices to govern the relationships between production and
distribution employers under thiis Crode and under such other codes
to thle end that such fair trade practices may be proposed to the
Admlinistrat~or as amendments to this Code and such other codes.
(g) To insure the execution of the provisions of this Code and
provide for compliance of the Trade with the provisions of the Act.
SECTIONN 3. (a) In order to provide data necessary for the adminis-
tration of this Code, all members of the Trade shall furnish to the
Code Auithority such information or reports as may be required,
subject to the approval of the Administ~ration. Such information
as may be submitted byv a member shall not be revealed to anyone
not a member of the Ciode Authority, provided, however, that such
information and reports shall at all times be available to the
Adlm in ist ra tor.
(b) In addition to information required to be submitted to the
Code Aiut~horityl there shall be furnished to Government Agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act. Nothing
contained in this Code shall relieve any member of the Trade of any
existing obligations to furnish reports to Government Agencies.
SECTION 4. Members of the Trade shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof (subject to
the provisions of subdivision (c) of Section 1 of this Article VI)
by assenting to and complying with the requirements of the Code
and sustaining their reasonable share of the expense of its admlinis-
tration. The reasonable share of the expense of administration shall
be determined by the Code Authority,. subject to review by the
Administrator, on t~he basis of volume of business and,/or such other
factors as may be deemed equitable to be taken into consideration.
SECTION 5. I~f the Admlinistrator shall determine that any action
of a Code Authorityr or any agenev t~her~eof may be unfair or unjust
or contrary to the public ~interesfi. tMhe Administrator may require
that such action be suspended to affordl an opportunity for investaiga-
tion of thie merits of such action and further consideration by such
Code Authority or agency pendlinga final action, which shall not be
effective unless thle Administrator approves or unless he shall fail
to disapprove~after thirty (30) days' notice to him of intention to,
proceed with suich action in its original or mnodified- form.
SECTION 6. Nothing contained in this Ciode shall constitute the
members of the Codle Authority partners for any purpose. Nor shall
any member of the Codle Aiuthority be liable in any manner to any-
one for any act of anyr other member. officer, agent or employee of
the Code Authority. INor shall any member of the Code Authority,
exercising reasonable dliligaence in the conduct of his duties here-
under, be liable to anyone for any action or omission to net Ilmder
this Code. exc-ept for h is own w~illfull miis-feasannce or non-fensa nce.
ARTICLE YTII-TRADE PR. lonIErs
The following practices constitute unfair methods of competition
and are prohiiiteed:
SEC'TIONT 1. False Mlarking or Brandincr: False m~arkingr or br~and-
ing of any prooduct. of the Trade which has the tendency to mislead
or deceive customers or prosp~ectivle cu~stomner~, whether as to the
grade, quality, substance, churneter. nature, origin, size. finish, or
preparation of any product, of thie Trad~e, or otherwise.
SECTION 2. nlisrepreSentatlon or False or Mlisleading Advertising a
Making, causing or knowinglyv permitting to be made or publishedl
anyfalematrialyinaccurate or deceptive statement by way oft
advertise maenor otherwise, whether concerning the grade, qu al ity,
quantityr, substance, character. nature. origin. size, 6inish, or prepara-
tion of any product of the Trade, or the credit. terms, vanlues, po~li-
cies. or services of any member of the Tradle, or otherwise, having
the tendlency or capacity to mislead or dleceive customers, or prospec-
SE~CTON 3. Commercial Bribery: Givingf, permitting to be given
or directlyv offering to give, anythling of value for the purpose ol
influencinga or rewarding the action of any employee, agent or rep-
r~esentative of another in relation t~o the business of the employer of
suchl employee, the principal of such agent or the. represented party,
without. the knowledge of such employer, principal or party; pro-
vided, however, that this shall not. be construed to prohibit free
And general distribution of Articles commonly used for advertising
except as far as suchl articles are actually used for commercial
bribery as hereinbefore defined.
SECnosN 4. Interference with Contractual Relations: Unaliciously
inducing or attempting to induce t~he breach of an oral or written
contract between a competitor and his customer or source of supply,
or interfering with or obstructing the performance of any such con-
tractual duties or services.
SECTION 5. Secret Rebates: Secretly paying or allowing rebates,
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise.
SECTION 6. Giving of Prizes, Premiums or Gifts: Giving or
offering to give prizes, premiums, or gifts in connection with the sale
of products of t.he Trade or as an inducement thereto, by any scheme
which involves lottery, misrepresentation or fraud.
SECTION 7. Defamation: Defaming competitors by falsely im-
puting to t~hemn dishonorable conduct, inability to perform contracts,
questionable credit standing, or by other false representation, or by
false disparagement of the grade or quality of their ggods.
SECTION Q. ThreatS Of L161gatlOn: Publishing or c irc ulati ng
threats of suit for infringement of patent or trade marks or of any
other legal proceedings not in good faith, with the tendency or
effect of harassing competitors.
SECTION 9. Espionage of Comipetitors: Securing confidential in-
formation concerning the business of a competitor by a false or mis-
leading statement or representation, by a false impersonation of one
in authority, by bribery, or by any other unfair method.
ARTICLE VIII -GENERAL
SECTIONN 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Section 10 (b) of the Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued
under Title I of said Act and specifically, but without limitation, to
the right of the President to cancel or modify his approval of this
Code or any condition imposed by him upon his approval thereof.
SECTION 2. This Code, except as to provisions required by the Act,
miay be modified or supplemented on the basis of experience or
changes in circumstances, such modification or supplements to be
based upon application by the Code Authority to the Admninistrator
with such notice of hearing as he shall specify, and to become effective
on approval by the Administrator.
SECTIONu 3. No provision of the Code shall be so applied as to per-
mit monopolies or monopolistic practices, or to eliminate, oppress,
or discrimiinate against. small enterprises.
SECTIONN 4. If any member of this Code is also an employer of
labor in any other Trade of industry, the provisions of this Code
shall applyr to and affect only that part of his business which is in
thle UCsedl Textile 1\Inchinlery and Accessories Trade.
ARTICLE IX-EFFECTIVE DATE
Thiis Ciode shall become effective on the eleventh day after its
approval by t~he President.
AppDroved Code No. 380.
Iliegistry Nro. 1333-12.
UNIVERSITY OF FLORIDA
lIllIII IllllIUI IIIlIlIIII llllIIIUIl
3 1262 08855 5577
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