Registry No. 9241-1--01
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
The Code for the Heel M~anufacturing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRIINTING OFFICE:
WASHINGTON : 1933
Per sale by the Superintendent of Documents, Washington, D.C. Price 5 centa
WI DD OUR PRMT
AS SUBMITTED ON AUGUST 31, 1933
NATIONAL HEEL M6ANUFACTURERS' ASSOCIATION
NATIONAL HEEL MANUFACTURERS' ASSOCIATION CODE
The following code has been adopted by the members of the
National Heel Mlanufacturers' Association as a code of fair com~peti-
-tion for their industry.
In accordance with the provisions of the Industrial Recovery Act
they request the President. of the Unitedl States to approve this
Code, and they herein express their cognizance of the fact that after
this Code has been approved any violation of this Code shall be
deemed an unfair method of competition and a misdemeanor, and
upon conviction thereof an offender may be fined not more than
11500.00 for each offense, and each day such violation continues shall
be deemed a separate offense.
As a matter of record this Association incorporates i its Code
the following provisions of the Industrial Recovery Act:
1. SEC. 3. (1) This Association will impose no equitable re-
strictions on admission to membership and is truly representative
of the heel building industry, and (2) that this Code is not designed
to promote a monopoly or to eliminate or dpprees small enterprises
and will not operate to discriminate against t~hem.
2. SEC. 7. (a) The employees of members of this Association shall
have the right to organize and bargain collectively through repre-
sentatives of their own choosing, and shall be free from the inter-
ference, 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; (2) that no ~employee and no one
seeking employment shall be required as a condition of employment
to jomn any company union or to reframn from joining, organizing, or
assisting a labor organization of his own choosing; and (3) that em-
ployers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment, approved or pre-
scribed by the President.
3. Membership.--Any person, firm, or corporation engaged in the
manufacture of built-up1 heels for the purpose of sale and not for its
own uise is eligible to membership in this Association.
4. Maximum. Hours. The maximum hours of labor, shall be not
more than 48 hours in any one week nor over 1,040 hours in any
This is an average of 40 hours per week but permits 48 hours per
week in the busy seasons.
The restriction of 48 hours does not apply to the following: Off-
cials, superintendents, foremen, salesmen, firemen, watchmen, ship-
pers, persons engaged inl transportation outside the factory, repair
crews, and office staff.
5. Minimum Wage.--The minimum rates of pay for all exper-
ienced employees shall be 25 cents per hou~r.
For beginners, t~he minimum wage shall be for the first three
months not less than 20 cents per hour, for the second three months.
not less than 22 cents per hour; aft-er six months, 25 cents per hour.
'In all cases, piece-work rates shall be such as will permit the
lowest paid emnployee in each class to earn the hourly rate above
The industry does not guarantee any fixed average hours or aver-
age pay per week.
6. Jwyueniles.-N person under 16 years of age shall be employed:
mn any capacity.
7. Cost Acco~untinfg.-Some simple but complete cost-accounting
system will be adopted and in any question of cost arising under
this Code the mlet~hod of cost finding adopted by the Association
shall be considered the standard method and t~he true cost.
8. Selling Beloreu Cost.-The sale of any heel, or the quoting of a
price on any heel, below the cost of that heel as figured by the-
methodi adopted byT the Association shall be considered an unfair
practice and a violation of this Code.
9. FaiY1r Xales Price.--A fair selling price. is one that is not less
thaLn 15 above the true cost as reckoned by the method adopted,
by~ the Association, if this is allowable under the law.
10. Terms of Sale.--The only terms on which heels may be sold
are an allowance of a discount of 4% for payment on or before the-
fifteenth of the month following the date of the invoice; after that
time all invoices are net. All invoices are due and payable in
-60 days from d3ate.
The allowance of more liberal terms in amount and/or time is-
an unfair practice and a violation of this Code.
11. Secret Rebates.--As one of the prime objects of this Associa-
tio isto eveopopen and fair competition and to do away with.
uinderhan ded and dishonorable practices, the granting of secret
rebates in any form is an unfair practice and a violation of this
Secret rebates include special services and special discounts not
generally allowed to purchasers of heels, as well as credits and
allowances which in effect amount to a reduction in the price of'
12. False Invroices.--All invoices for heels should state fully and
clearly the exact details of the transaction and any deviation in
an invoice from the true facts is an unfair practice and a violation
of this Code.
13. Fald~u~len~t and Deceptive Pra~ctices.--Any: act which is in
the nature of bribery or which has for its object the unethical
influencing of a buyer is an unfair practice and a violation of this-
Code. This title includes gratuities to buyers, inducing sales by
payment of commissions or rewards to employees of users of heels,
lavish entertainment, etc.
14. 17aiformL Cotrz/acts.-ABs it is not. for the best interest of the
industry t~o have any of its members enter into contracts for uncer-
tain quantities of merchandise for indefinite periods, any contract
which extends into the future over 90 days from its date is an.
unfair practice and a violation of this Code.
Under this section a member may enter into contracts for future
delivery for a stated number of pairs of heels, or; for a customer's
requirements, to be shipped during the ninet~y-day period, at the:
price for each size and style as shown in the contract.
The Association believes that. contracts should be binding oIn both
parties. It expects any mermber who mnakes a contrnect withl a cus-
tomer to live up to the terms of thle contract. Likewrise, the Associa-
tion expects that customers who have made contracts with its -mem-
bers will live up to the terms thereof. To accomuplishl this end the
Association will use its best efforts.
The Associat~ion strong~ly r~ecommlends th~t if at any' time a memnb~er
has a contract with a p)urchaser wchic'h the p~urchalser refuses, to carry
out to the satisfaction of the member, that. the member should not
enter into any further contract with that purchaser, but should
report the facts in detail to the Secretary for consideration and pos-
sible action by the Association.
15. Fr'eight and Cartag-e Allowannces.---An allowance for freight
.and/or certage of an amount exceedingr the actual freight and carta~ge
is an unfair practice and a violation ocf this Code.
16. Examnal'utoio of Book~s of Accoun~t.--It is agreed by each of
the members of this Associ~t~ion that~ in case thle cost of any of their
heels is questioned, under the Section of this Code forbidding the
sale of wheels below cost, that the Boardl of~ Directors or an accountant
of its choosing may examine the books of the concern in question
.so far as theyv have t~o do with the cost of manufactulre of heels.
The cost o~f such accounting shall be paid from the funds of the,
17. Reportfs to Secretaryl. The members of the As~ociation agree
to make such reports to thle Secretary as the Board of Directors of
this Association may from time to time vote to request from its
Under no circumstances shall the Secretary divulge to anyone
the contents of the report of a member. H e shall compile and edit
such reports and pass the information on to every~ member, but in sulch3
form that, the information furnished by any indivridual member can-
not be identified. A member who has not sent in a report of his own
business is not entitled to receive from the Secretary reports contain-
ing information based on the business of others.
It is agreed that if the Boa~rd of Dlirec~tors hnas any doubt. about thne
accuracy of any report or reports sub~mittel b~y a memnber that it may
emp~loy a~n accountant to examine the books of the member in ques-
tion; the member agrees to allow such an inspection of his books, the
cost of the inspection to be paid out of the funds of thet Association.
The following reports to the Secretary are required under this
(a) lIlonthly reports of thle number of pairs of heels invoiced
during thle p>receding month, the report to state separately the pairs
of all-leather heels and combination heels.
(b) Name and address of any customer wh~Io has not paid any
invoice within sixt~y days from its date.
18. Duezs.--The members of this Associat~ion agreed that they will
pay monthly dues sufficient to support the Association.
The amount of the doyes shall be determined by~ thes B3oard' of
Directors and shall be on 4, pro rata basis to each member, either 44 a,
percentage of dollar sales or per pair of heels.
The neglect to pay ;dues shall be considered! a violation of this
19. Discounts to Dealer~s.--It is agreed that a commission of 5%
is; a sufficient recompense to a dealer who buys wheels for resale or-
who sells heels on commission.
The allowance to a dealer of a larger recompense than 5%a of the-
sale price of t~he heels is an unfair practice and~ a violation of: this
N~o user of heels may be considered as an agent or dealer..
20. Adrjustmnent Cor/nunittee.--Any member of this Association who
feels himself aggrieved at any action, or supposed action of a fellow.
member, which h~e deems to be a viola~tion of any Section of this Code,.
may makre complaint in writing to the Board of Dir~ectors, stating in.
his complaint thle namne of thle supposed offender, the name of the
customer involved, and all thle facts: pertaining to the case of whicli.
he is aware.
UCpon receipt of any griev-ance in writing from a member, the
Board of Directors shlall within ten (10) days appoint a~n Adjust-
ment Committee of three (3) members to investigate the complaint.
The Adjustment Commit~tee shall promptyuse a~lldiligence to
discover thle true facts in t~he case, and rende a, decision with: or.
without penalties, which decision shall be final.
21. Attemp~-t to BrePak Conltract.--The inducing, or attempt to
indfuce. a user of heels to break a contract in effect between him and'
a competitor is an unfair practice and a violation of this Code.
22. Defamllatio n of Comnpetit or.--Def amnato ry rematrkis about a
competitor, as regards his character, business methods, or integrity
are an unfair practice and a violation of this Code.
23. P~urcha~s~e s of Rzaw Alaterials.--The paying of mor~e than the
market prices for raw materials (le~ather) to a user of heels is a
formn of rebate and is an1 unfair practice and a violation of this Code.
24. This Code shall become effective 10 days after its approval by
the President of the United States.
25j. This Code shall be in effect during the effective life of the
Industrial Recovery Act, or until the Act is rendered void by the
President of the United Stat~es or by an Act of Congress, but while
this Code is in effect it may be amended or alteredl at any time in the
(a) By an affirmative vote of members who sold at least 65%11 of
the heels sold during the preceding calendar year, provided these.
members are not less than 65%1 of the total membership.
(b) By order of the President of the United -States.after consul--
tation with this Association.
NATIONAL HEEL MANUFACTURERS' ASSOCIATION BYLAWS
SECTION 1. The. name of the Association shaUl be National Heel
AnnIcLE II OBJECT
SECTION 1. The object of this Association shall be to foster thme
interests of its members andl those in any way related by common
business interests to the business of m~anufacturinng b~uilt-ump heels,
and maintaining uniformity and equity in. the customs alnd~ usages
of the heel-manufact during trade; to acquire, preserve, a~nd dissemi-
nate valuable business information; to promote a more enlar~ged andl
friendly intercourse amnong those engaged in the manufacturingr of
heels; to do anything necessary, Esuitable, and prloper for the accom-
plishment of any purp>oses hlerein set forth or which may be recog-
nized as proper and lawfull objectives of trade associations; all of
which shall be consistent with the public interest a~s well as in the-9
interest of this industry and trad~e.
SECTION 1. Aeflive.--Any person, firm, or corporation engaged in
the manufacture of built-up3 heels is eligible to~ become an active
member of this assoeintion.
~Ec'. 2. ITOtinr.--EnChI member firm and corpdorat~ion shall appoint
and certify to the secretary of the a.ssoc~iation a members or an officer
to be its representative in the association and he shall r~epr~esenlt, vote,
and act for thme member in, all affairs of the association, including the
holding of office therein.
SEc. 3. ElectionL of Membe~r~s.--Any person, firm, or corpornt~ion
eligible to membership under these bylaws on making written appli-
cation therefore shall be elected to membership.
SEC. -1. P)tral/O inOf 77Rem711bersip ~jC I~ nd resOignaltjon.T.-Mne mbe rship i n~
this association may terminate by death, voluntary wvithdrawanl as
herein provided, or otherwise in pursuance of thlese bylaws. The
right of a member to v'ot~e andi all other rights, title! and interest of a
member in or to the association, its rights, privileges, and property
shall cease on the termination of membership. Any member may by
giving written notice of such intention withdraw fromt membership.
Such notice shall be presentedl to the Board of Dir~ectors at the next
succeeding meeting of the Board of Directors. WCithdrawalns shaHl
be effective upon fulfillment. of all obligations to the date of;
SEc. 5. SU.Ppensio-n and Empulsion0).--For ca use, any membership
may be suspended or terminated. Sufficient cause for such suspen-
sion or termiination of membership shall be violation of bylaws, code,
or anyS agreement, rule, or practice properly adopted by the associa-
tion, or any other conduct prejudicial to the interests of the associ-
ation. Such suspension or expulsion shiall be by two thirds vote of
the entire membership of thle B~oard of Direct~ors: Pr~ovided, That a
statement of the charges shall have been mailedl byr registered post
to thle Ilast recorded address of the member at least fifteen (15) days
before final action is taken thereoni. This statement shall be accom-
panied by a notice of the time and placeP of the meePPt~ing of the Board
of' Dir~ectors at whrlich the char~lges shall be considered and the member
shall have tlhe opportunity to appear andl present any defense to such
charges before action is taken ther~eon.
tSEC. 6. LiiUi8iOR Of EC~nlbeis.--The active m~embers of the associ-
ation may be dlividled inito geogrraphical divisions us may~ be desig-
nated by the Boarid of Dir~ectors. Each division may form such
a~uxiliary ol'rganization1 s for the pui~irpose of coordlina7tingr and aiding in
the general objects of the association as miay not be inconsistent with
these bylaw\Ts or interfere in anyl way with the activities or af~fair~s of
SECTION 1. The annual dues for each mem~err of the association
shall be determined by thle Board of D~irectors but shall be propor-
tionate to t~he dollar amnoult. of or volume of business done by each
member during thep nppreceing year.
SEC. ". hIembers w~ho fail to pay their dues or assessments within
thirty days fr~om the timne the same become due shall be notified by
the secretary, and if payment is not marde within the next succeeding
thirty days, shall be reported to the B3oard of Directors as in arrears
and, if so ordered, shall be dropped from the rolls and thereupon
forfeit all rights and' privileges of mnembership.
SEC. 3. The BScal year shall be from June 1 to M~ay 30.
SECTION i. 21nnuitl.--Theree shall be anl annual meeting of the
association during the month of July, unless otherwise ordered b
the Board of Directors, for election of mnember~s of the Board o
Directors for receiving the annual reports and the transaction of
other business. Notice of such meeting, signed by the secretary,
shall be mailed to the last recorded address of eachi member at least
fourteen (14) days before the time appointed for the meeting.
SEO,? 2 ReuP.-Relar mee~tingrs of thie association shall be held
on written notice of time and place and subjects to be considered.
notice being given ten (10) days in advance of each meeting.
S.c. 3. SCrpecal-.-S pecial meet~ings of the association mlay be called
by the Board of Directors. Upon the written request of five (5)
members of the association, the Board of Directors shall call a special
meeting. Notice of any special meeting shall be given five (5) days
in advance with thle statement of time and place and the information
as to the subject or subjects to be considered.
SEC. 4. Q1101th7.--Seven members present at any meeting of the
association shall constitute a quorum, and in case there be less than
t~hi; nmrmber the presidingl officer may' adjourn thle meetings from
time to time until a quorumn is present.
ARTICLE VI Awwar. ELECTION
SECTION 1. At t~he annual meeting next held after the adop~ltion of
these bylawsi, there shall be elected by ballot fivee (5) dlil~retors of
t~he association, tw~o (2) of w7hom shiall be e~lec~ted for a term of
one y~ear. tw~o (2) for two years, and one (1) for three years. At
each annual meeting thereafter a number of directors equal to that
of those whtose terms h~ave expir~ed shall be elected for a termn of
three years. Any director shall be eligible for reelectioni.
SEc. 2. The Boardi of Dir~ectors shall elect a president, vice pr1esi-
dent, and a secr~etary~-treasu rer of the association who shall serve to
the end of the next annual meeting, or such time; as their respective
successors are dluly elected and take office.
ARTTICLE VII-BOARD OF DIRCECTORIS
SECTION 1I, oO'OOirMel~ f Of soeliationz.-TIPhe property, affairs,
business, and concerns of the association shall be vested in a Board
of Directors, consisting of five (5) directors. The members of the:
said board~ shall, upon election, immediately ent.er upon the per-
formance of their duties and shall continue ini otflice until their
successors shiall be duly elected and' qualified.
SEC. 2. Dvaties. -The Board of D~irectors shall have control and
management of the affairs of the association, with author~ity to en-
grage assistants, fix salaries, admit, suspendl, or expel mnember s, and
to do everything necessary and desirable in the conduct of the busi-
ness of the association, and in accordance with the bylaws.
SEC. 8_. AV66/inf8.-A regular meetings of thae Board of Directors
for the election of officers shall be! held immediately following the
annual meeting. TIhe tp resident may, when he deems nece~ssa ry, or
the secretaryv shall, at the request in. writing of three 1(3) members
of the board1, issuel A. callI for al s~pecialI met~ingr of the b~oar~d, and
only five (5) days' notice shtall be: required for such special meetings.
SECI. -l. Q28rumn..-AQ majority of the board shall constitute a
quorum for the election of officers and all other purposes niot other-
wise provided for herein. Inr the absence of the president, the vice
president may preside, otherwise the members present may choose a
chairman for thle meeting.
SEO. 5. Absence.--Any member of the Board of D~irectors absent
from a meeting should send a communication -to the president or
secretary stating his reason for his absence, and the mlember~ship
of the board in attendance shall decide in each instance whether or
not such absence is excusable. ITn the event there are three con-
secutive unexcused absences on t~he part of any member of the
Board of Directors, his membership on the board may be declared
SEC. 6. BO;CHRCle8.-Any9 vacancies that; may occur on the board by
reason of death, resignation, or otherwise may be filled by the Board
of Directors for the unexpired term.
SECTION 1. Pre8idenzt.--The president shall be the executive officer
of the organization, and shall preside at meetings of the association
and of the Board of Directors and shall perform such other duties
as are necessarily incident to the office of president of the asso-
c~iation or as may be prescribed by the Board of Directors.
SEC. 2. P/Ce Pre8/#821.--18 case of death or absence of the presi-
dent or of his inability from any cause to act, the vice president
shall be designated by the Board of Directors to performs for the
time being the duties of the president's office.
SEC. 3. Sercrtary- Trua~surer.--The secretary-t treasurer shall keep
an account of all monies received and expended for the use of the
association and shall mak~e disbursements authorized by the board.
All sums received he shall deposit in the bank, or banks, or trust
company approved by the Board of Directors and shall make a
report at the annual meeting or when called upon by the president.
It shall also be his duty to give notice of and attend all meetings
of the association and of the Board of Direct~ors and keep a record
of their proceedings; to conduct all correspondence and to carry into
execution all orders, votes, and resolutions not otherwise committed;
to keep a list of the members of the association; to collect annual
dues and subscriptions; to prepare under the direction of the Board
of Directors an annual report of the transactions and conditions
of the association and generally to devote his best efforts to forward-
mng the business and advancing the interest of the association.
SEC. 4. The secretary-treasurer shall at the discretion of the Board
of Directors furnish at the expense of the association a. fidelity bond
approved by the Board, in such a sum as the Board shall prescribe.
SECTION 1. a cjulstmenzt Cornm!Elfee.-mhenever a grieVRance ill
writing is received from any member of the association, the Board of
Directors shall within ten days from its receipt, appoint an Adjust-
mnent Commlittee of three members who shall investigate the griev-
ance and make a decision which shall be final.
SEc. 2. Conmmittee on normina~tions.-A+t least sixty (60) days be-
fore the annual meting, the Board of Directors shall appoint a
nomina~ting committee of five members, none of whom shall be a
member of the board, whose duty it shall be to nominate candidates
for directors to be elected at the next annual election. They shall
notify the secretary, in writing, at least thirty (30) dlays before the
date of the annual meeting, of the names of such candidates, and the
secretary shall mail at least twenty (20) days before the annual
meeting a copy thereof to the last recorded address of each member.
SEc. 3. Independ ent nomin~ationzs.-Nomin nations for directors may
also be made, indorsed with the names of not less than seven ('7)
members of the association, if received by the secretary at least five
days prior to the annual meeting of the association for immediate
transmittal by him to the members.
AnzRTCuc X -MAIL VOTE
SECTION 1. Whenever, in the judgment of the Board of Directors,
any question shall arise which it considers should be put to a vote
of the active membership and when it deems it inexpedient to call
a special meeting for such purpose, th~e directors may, unless other-
wise required by these bylaws, submit such matter to the memaber-
ship in writing by mail for vote and decision, and the question
thus presented shall be determined according to 65%0 of the votes
received by mail within two (2) weeks after such submission to
the memberhnp rship.e 'fBAny and all action taken or omitted to be taken
in prsunce f majority m~ail vote in each such case shall be
binding upon the association and as against each member thereof.
ARTICLE XI-housanzARIL ]RECOVERY Acr CODIE
If any provision of these Bylaws is at variance with the provisions.
of the Code adopted by the association under the Industrial Recov-
ery Act, the provisions of thne Code shall prevail.
SECTION 1. These bylaws may be amended, repealed, or altered,
in whole or in part, byv a two-thirds vote at any duly organized
meeting of the association, provided the proposed change is sub-
mitted by mail to the last-recorded address of each member at least
thirty (30) days before the time of the meetings wpich is to consider-
UNIlVERSITY O)F FLORtDA
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