Registry No. 1333--1--02
War mi by de Superintendent of Docllneens, Washington, D.C. Price 5 cents
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND WIRE COVERING MACHINE
AS APPROVED ON OCTOBER 3, 1933
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASJHINGTON : 1993
This publication is for sale by the Superintendelrnt of Documents, Government
Printing Office, Washington, D.C., and by disctriCt offCes of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504li Post Office Building~.
Birmingham, Ala. : 257 Fedeilrall Buildling.
Boston, Mass;.: 1801- Custombilouse.
Buffalo, N.Y.: Chamber of Comincrre B~uild~ing.
Charleston, SO.:. Chamber of Commller~ce Building.
Chicago, Ill.: Suite 17'06, 201 Nllorthll \'ells Street.
Cleveland, Ohio: Chamber of Co~lmmeree.
Dallas, Tex.: Chamber of Commerl~e B~uildlina.
Detrocit, Mich.: 2213 First National Bankh Building.
Honu; tln Tex.: Chamuber of Commcrceu Buildling.
~Indianapllolis, Ind.: Chamlber of Comme~rcc e Building.
Jacksonvllelr Fla.: C~hamber of Conmmc~e Duilding.
Kansas City, Mo.: 1028 Baltimolcre Avenlue.
Los Angle~ils. Calif.: 1168 South Broadway\.S
Louisvillr, KIy.: Room 405, 421 Wes~t Mrkfllet Street.
Mlemphlis, Titnn.: 266j South Water Strt'et.
M~iniineapolis Mlinn.: 213 Fedleral Building.
New Orleans, La.: 1Room 225A, Customhouse.
New Yorkr, N.Y.: 784 C'ustombhouse.
Nrorfo-lk, Va.: 406 East Plume Street.
Philadelphia, Pa.: Room 812, 20 South Fifteenth Street.
Pittsburgh. P~a.: Chamber of Co~mmelrce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive! Street.
San Francisco, Calif.: 310 Customhou~se.
Seattle, Wash.: 1406 Vance Building.
CODE OF FAIR COMrPETITION FOR THE KNreTNna, BJRAIDING, AND I~7RE
COVERING R1ACHINE INDUSTRIES
ALn application having b~een duly ma~de, pur~suanit to and in full
compliance withi the p~rovisions of title I of thle National Ind~ustr~ial
Recver At, approved June 1.6, 1933, for my~ approval1 of a Codle
of Fair C~~pyompetition for the K~nitting, B~raiding, and Wire Covering
Machine Industries, and hearings having been held therieon and~ the
Administrator having rendleredl his rep~ort. containing an analysis
of the said cod~e of fair compIetition together w~ith his recommecnrnd-
tions andi findings with respect thiereto, and thle Administrantor hav-
ing found that the said code of fair comp~etitionl complies in all1
respect ith he ertinent provisions of title I of said act andl that
the requirements ofd; clauses (1) andr (2Z) of subsection (a) of section 3
of the said act have been m~et:
NIOWC, THEREFORE, I, F~ranklin D. Roosevelt, President~ of
the United States, pursuanit to the authority vestedl in me by title I:
of the National Industrial Recovery Act, app~roved June i6, 1933,
and otherwise, dlo approve the report andc recomlmenda~tions andi
adopt the findings of the Administrator andc do ordler that the said
Code of Fair Comnpetition be and it. is hereby approved.
FRANKLIN D. ROOSEVELT.
THE HEIrTE HOUSE,
Approval recommended :
HUGH S. JoHNSon,
A dmnl str1a to r.
SEPTEMIBERI 2i)! 108.
The PRESIDENT, THEE HFfITE HOUSE.
LMrP DEAR A IR. PREIDgLENT: I have(Z the honor to submit. and recomn-
ment for your approval, the Code of Fair Competition for the Knit-
ting, ]Braidling, and WrTire Covering Ma~chine Indlust~ries.
The following exhibits are included or attached:.
(1) Final Code Submniftte
(2) N~otice of Hearningr
(3) Statement of Procedure
(4) ranscript, of the Records
(5 tatistical Analy-sis of! thle Division o~f E~conomic Re-
search and Planning
(6) Rteport of Deputy Admninistrator
An analysis of the provisions of the Code h~as been made by t~he
Admnli n ist raltion. I find that the Code complies wIithl the reqluire-
2nents of Clausesi 1 and 2, Subsection (a) of Section 3 of the National
I am, my dearl MIr. President,
Very sincerely ~yours,
HeancI S. JoaNson,
JOINT CODE OF FAIR COMPETITION FOR THE KNITTING,
BRAIDING, AND WIRE COVERING MACHINE INDUSTRY
AS SUBMITTED BY KNITTING MACHINE MANUFACTURERS' ASSO-
CIATION AND THE BRAIDING AND WIRE COVERING MACHINE
To effectuate the policy of Title I of the National Industrial Re-
covery Act, during the period of the emergency, by reducing and
relieving unemployment., improving the standards of labor, eliminiat-
ing competitive practices destructive of the interests of t.he public,
employees and employers and otherwise rehabilitating the K~nitting,
Braiding, and Wire Covering Machine Industries, the following pro-
visions are established as a Code of Fair Competition for these
ARTICLE II DEFINrITION
The termi K~nitt~ing M~lachine Industry ", as used herein, is defined
to mean manufacturers of knitting machines and parts used in these
The term "L Braiding and Wire Covering Machine Industry ", as
used herein, is defined to mean manufacturers of brnid'ing machines,
wire covering machines, and parts used in these machines.
The term "' Industries ", as used herein, means both the Knitting
Machine Industry and Braidinng and W7ire Cover~ing Machine
Industry ", as defined above..
The term employee ", as used herein, includes any person en-
gaged in any phase of the I[ndust~ry, in any capacity, in the nature
of employee irrespective of the method of payment of his compensa-
The term "' employer ", as used herein, includes anyone ~for whose
benefit such employee is so engaged.
The term "L effective date ", as used herein, is defined as ten days
after this Code shall have been approved by the President of the
The term administrator ", as used in this Code, means the Ad-
ministrator appointed by the President to Administ~er Title I of the
National Industrial Recovery Act.
Any employer may participate in the endeavors of the K~nitting
Machine Manufacturers' Association and/or the Bra~iding and W~ire
Covering Machine Association relative to the revisions of or addi-
tions to this Code by accepting the proper pro rata share of the
ncs andr repo~nnsblity)t~ of creating and admninistering it, either by
becoming a member of one of the said associations or by paying
to it an amount equn1:~ to the pro rataz share of such member of the
costs incident thereto. Thecrec shall be no inequitab~le rest.r~ict~ions
placedt upon admission to membership of either of the Associat~ions
recf~r~redc to in this Code.
To effectuate the po~licries of this Act a Comrmittee is her~eby des-
ignatedl to cooperate with the Administrator as a Planningr andi Fair
Practice AgencylS for the Industries. This CommHnittee shall consist
of three membe'l~rs fromt each of the Assoc~iations recf'erredc~ to in this
Code, sejletedl by a fair mnethodl of selection and. thle seventh mnem-
ber of the Cominmittee is to bedessignated by eachl of t~he two Asso-
ciations in joint a~gr'element. The Prestidet may~ also apploinlt three
members of this Ag~ency to serve without the power1 of' voting~r. Such
Agencyr shall collect nlclemary and pertinent information ~elative to
the operation of this Code and shall from. time to time p~resient to
thze Aidmlinistrator recommendations based on conditions in thle Indus-
try as they mayr develop w7ihich will tend to effectuate the operation
of the provisions of this Code and the policy of t~he Natiojnal Indlus-
t~rial Recovery Act. All action taken by this Agency clhll be subject
to the approval of the ]President and/or the Adminisltrator.
~ARTICLE V--Lason REGULATIONS
(a) Employers in these~ Indu~strie~s shall comply w~ith thle follow-
irng requirements of Section 7 (a) of Title I of thle ~Ntional Indus-
trial RecoveryT A-ct:
1. That employees shall have the right to organize and bargain
collectively through rep~resentatives of their owl c~hoosing, andt shall
be free from the interference, restraint, or corercion of empllloyers of
labor, or their agents, in the designation of suich repriesentatives or
in self-organization or in other conc~er~ted actlivities~ for the purpose of
c~ollec~tive bargaining or other mutual alid or p~lrotection:
2. Thnat no employee and no one seekiing employmentn shall be re-
qucired as a condition of emp~lloyment to join any company? union or
to relfrain~l from jn~o.mg rloran;zing, or assistingr a Inbor organization
of his owvn c~hoosingr; and
3. That employers shall comnply with the maxnimnumn hours of labor,
m~inimumr l ra~tes of pay, and other conditions of emplloyment, a, approved
or pres"cr~ibed by the P~reside~nt.
(b) On and after the effective date the minimum wage thant shall
be paid by employerjis in the Industry to necounting, clerical, and
office employees shall be at the rate of not less th~an $f14.00 per week,
and to all other employees (ecsep~t. lear~ners duringS their initial 90
days, and app~lrentices not to total more than 5 p~ercentl of the average
yearly numllber of employees) shall be at thle rate of not less thann 40
cents per hour regardless of whether t~he emplloy~ee's compensation is
otherwise based on a timne ras-te or upon a p~iecewFo rk( performance;
provided, hiowever, thant where a State law pr1ovidles a higher mini-
mu~m wage, no person employed within that State shall be p~aid a
wage below that r~equlired by such State lHaw, andl, provided further,
that in no case shal thle compensation of any' emp~loyesc'~ expressly
excepted in this Section (b) be less thann 80 percent of thle mninimumii
rates of pay hlerein established.
(c) On and after the effective date, employers in thle Ind~ustr~y shiall
not operate on a schedule of hours of labor for their employees (ex-
cept executives, supervisory staff, and outside salesmecn) in excess of
40 hours per wreek; provided, hlowever, that during an emergency or
any period in whlichi a concentrated demandr up~on any dlivision of the
Industry shall place an unusual and temprnilary burden -for produe-
tion upon its facilities, an employee of suich division may be per'mitted
to work not more than 48 hours per w~eek in not more than 8 weeks
of any six months' period; provided, further, that the total hours of
work shall not average more than 410 hours per week in any six
months' period. Where in any case an employee is worked in excess
of 8 hours per day, timne and one half shall be paid for thle excess
hours so worked.
(d) There shall bee an equitable adljustment of wages above the
minimums herein prescribed, to the end that so far as may be
equitable the differentials which now exist between the wage rates
paid to skilled workers and those paid for unskilled Inbor shall be
ARTICLE VI--CIHILD LLanon
On and after the elective date of this Clode, employers in either
or both of these Industries shall not employ any minor under 16
years of age j provided, however, that where a State law specifies
a higher minimum age, no person below the age so specified by such
law shall be employed within the State, and, provided further, that
no minor under 18 years of age shall be employed on hazardous
ARTICLE VI. -UNFAIR 1\IETHODS OF COMPETITION
For all purposes of this Code, the acts described below shall con-
stitute unfair methods of competition.
(a) To sell any products) or services) below the manufacturer's
reasonable cost of such product (s) or service (s).
1. For this purpose cost is defined as the cost of direct labor plus
the cost of materials, plus an adequate amount of overhead includ-
ing an amount for the use of any plant facilities employed as deter-
mined by cost accounting methods recognized in their respective
industries and approved by the committee constituted for the enforce-
ment of this Code as provided in Article IV, and the Administrator.
(b) To discriminate between purchasers of the same class.
(c) To engage in acts of commercial bribery.
(d) To give secret rebates.
(e) To accept old machines as part payment for new machines or
(f) To sell machines other than f.o.b. factory.
(g) To copy or duplicate the machines of an established builder
of Knitting, Braiding, and Wire Covering Machinery or parts for
UNIVIEREITY OF FLORIDA
3 1262 08855 5635
recognized mafchinles and sell them at prices under the reasonable
cost of the original manu1111factulrers~ as p~proved by the Planning and
Fair Practice L\Agency~ and subject to review by thte Administrator.
ARTICLE VIII Tanars or SALE
Cashi te~irms shall be 30 days on machines andl par:s--no discount for
cash shall be more than 2 percent and payment must. be muade within
ten day3.<. No agrreemelt nt of sale shall be for a longer period than
twelve monthsfli. Realsonlable financing and interest charges are t.o be
paid by the purlrc~hase r. Stocks or bonds of the purchasing com-
pan"y shall not be accepted in lieu of cash. All extended term sales
to be cov~re~d by Cond~itional Sales Contract or legal lien. Initial
cash p~aymen~t shall not be less than 25 percent payable wit.h order,
or when ma1chines are delivered~c. -No manchinies shall be put out on a
It is expressly und~erstood that no p~roi~sion of this Code shall be
interpre~tedl in such a way as to condlone or permit conduct or
(a) Tenmding to p~erm~-it monopolies.
(b) Permitting or encouraging unfair competition.
(c) Tending to eliminate or oppress small enter~prises or to dis-
cr~iminate~ against small enterprises.
This Code and all the provisions thecreof ar~e ex~presslyl made sub-
ject to the right of the Presidlent, in accordance w~ith the: provision
of C1in use 10 (b) of -the Naltional Industrial Recovery Act, from
time to time cancel or modify any border, appr~oval, license, r~ule,
or r~egulatio.n i~ssued unde~cr Title I: of said Act, and specifically t~o
the right of the Pr~esident to cancel or mlodify his approval of this
Code or any conditions imposed byT himn upon hlis approa~l thereof.
Such of the provisions of this Code as are not. required to be
inc~ludet d lth~erein by the Na~tional Inldustrial Rtecovery~ Act may, w~ithl
the appr~oval of the Presidlent, be modified or eliminated as changes
in the circumstances or experience may indicate. It. is contemplated
th~at from time to time supplemnentar~y provisions t~o this Code or
additional codes will be submitted for the approval of the Presi-
dent to prevent unfair competition in price and other unfair and
destrulctivee competitive practices and to effect~uate the other purposes
and policies? of Title I of the National Inldustrial Recovery Act con-
sisteit~ with the provisions hereof.