Code of fair competition for the textile processing industry


Material Information

Code of fair competition for the textile processing industry as approved on January 30, 1934 ..
Physical Description:
p. 539-547 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Textile industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Approved Code No. 235 ; Registry No. 299-1-13".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004861684
oclc - 63654392
System ID:

Full Text

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Approved Loae No. 235

Registry No. 299-1-13








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ar sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents


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This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
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Approved Code No. 235



As Approved on January 30, 1934


Approving Code of Fair Competition


An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Textile Processing Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, .dated December 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Code complies in al'l respects with the
pertinent provisions and will promote the policy and purposes of said
Title of said Act; and do hereby order that said Code of Fair Com-
petition be and it is hereby approved.
Administrators for Industrial Recovery.
Approval Recommended:
Division Admnirnistrator.
Jan ua)ry 30, 1934.

32792--313-72- 34


The White House.

This is a report on the hearing of the Code of Fair Competition
for the Textile Processing Industry.
The hearing was conducted in accordance with the provisions of
the National Industrial Recovery Act, in the Rose Room of the
Washington Hotel in Washington, D.C., on November 15, 1933.
Every person who filed a request for a appearance was freely heard
in public and all statutory and regulatory requirements were com-
plied with.
The Code which is attached was presented by duly qualified and
authorized representatives of the above industry, complying with the
statutory req'li regents, as representing 83.6 percent of the industry.


The industry consists of 208 firms with an invested capital of ap-
proximately $31,750,000. The volume of business for 1932 was $25,-
000,000 as compared with an average for the past five years of ap-
proximately $39,000.000. It is estimated that the pay roll for 1932
was $S,800,000 compared with an average pay roll of $13,000,000 for
the pst five years. There were 7,75S employees on the pay roll on
May 1, 133. The estimated average number of employees during
1929 was 10,458. The industry is made up of a large number of
small concerns and not dominated by a few outstanding establish-

The Code provides for a minimum wage of $13.00 per week for
forty hours of labor for employees for cotton and rayon yarn pro-
cessing and $14.00 fofr 40 hours of labor for all other processing. For
employees in the South the minimum rate of pay may be lower than
the above by not to exceed two and one half cents per hour. With
respect. to commission dyeing and or finishing of hosiery provision
is made that the minimum wage for 40 hours of labor for each class
of worker shall be that provided in this Code, or that provided in
Sections 1 and 2 of Article V of the Code of Fair Competition for
the Hosiery Industry, whichever, in any case, may be higher. Cer-
tain employees receiving $35.00 or more per week are excepted from
the maximum of forty hours per week. Watchmen are limited to
56 hours per week. Provisions have been made to prevent the
reduction of wages for the shorter weeks.



The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, includ-
ing removal of obstructions to the free flow of inter-state and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry 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 supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural 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) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed 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
For these reasons, the Code has been approved.
JANUARY 30, 1934.



To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of Fair
Competition .for the Textile Processing Industry and shall be bind-
ing u pon every member thereof.


1. The term Textile Processing Industry or Industry as used
herein nieanii and includes the following:
(na The commissionn bleaching and or dyeing of cotton and wool
raw stock and worsted tops;
(b) The commission scouring, dyeing, bleaching, and. or other
processigin of yarns made of wool and./or other animal fibres (not
including s:ilk), wool, and or other animal fibres (not including silk)
in c(,ibiination with other fibres, cotton, rayon, and or other syn-
thetic fibres (.r combinations thereof; but shall not include the com-
nis.,1ion scouring, dyeing, bleaching, and'/or other processing of
yarn-s Iiiade of ranon and 'or other synthetic fibres or combinations
llheietf by persons who are nmember.s of the Institute of Dyers and
Priintrcs. but such persons, as to such rayon yarn processing, shall be
governed as to competitive practices by any code of fair practice
to bI approved for this industry;
(c) The commission dyeing and, or finishing of knitted textile
( ':1) The counaission dyeing and 'or finishing of hosiery; provided,
however, that any member of the Industry engaged in such dyeing
and or finishing of hosiery, whether for his own account or for the
account of another, shall also be governed by Article VIII of the
Code of Fair Competition for the Hosiery Industry as to the
inerchandising and 'or marking of hosiery;
(e) The commission mercerizing of cotton yarns;
(f) The commission winding, warping, slashing, and/or beaming
of yarns made of cotton, wool, rayon, and 'or other synthetic fibres
or combinations thereof;
(g) The commission dyeing and,'or finishing of woolen and/or
worsted woven fabrics;
(Ih) The commission glazing of cotton yarns and 'or sewing thread
and/or twine;
(i) The novelty or fancy twisting of yarns of two or more ends
made of wool and 'or other animal fibres, rayon, and 'or other syn-
thetic fibres, and,,'or combinations thereof with other yarns, pro-
(542) .



duced on twisting frames having two or more lines of controlled
rollers,-including the primary distribution thereof; but shall not
include such novelty or fancy twisting of yarns as described herein
made by .persons who are members of the National Association of
Wool Manufacturers, but such persons as to such novelty or fancy,
twisting of yarns as described herein shall be governed as to com-
petitive practices by the supplementary codes of fair practice to be
ap:pmved for this Industry;
(j) The dyeing, glazing, converting, and primary distribution :of
glazed cotton yarns, not including sewing thread and/or twine;
(k) The processing and primary distribution of dyed and -'or con-
verted sales yarns made of rayon and or other synthetic fibres, not
including such yarns, natural or bleached, singles, with seven turns
twist to the inch or less put up in skeins, spools, tubes, and, 'or cones;
(1) The scouring, dyeing and 'or bleaching of sales yarns made
of cotton, wool and or other animal fibres (not including silk) when
so processed as yarns; provided, however, that provisions in this
code governing labor and plant operations shall not apply to the
processing of such sales yarns by spinners thereof. The term "sales
yarns" as used herein shall mean yarns produced for sale to others
as distinguished from yarns produced for conversion, by the pro-
ducers thereof, into fabrics and or garments.
2. The term Guild as used herein means the National Textile
Processors iGuild, Inc.. a membership corporation organized under
the laws of the State of New York.
3. The term "-Code Authority as used herein means the Textile
Processing Code Authority as designated in Article III of this Code.
4. The term "Act." as used herein means the National Industrial
Recovery Act approved by the President of the United States June
10th, 1933.
5. The term '" employee as used herein includes anyone engaged
in -the Industry in any capacity receiving compensation for his
services irrespective of the nature or method of payment of such
6. The term '- employer as used herein includes anyone by whom
such employee is compensated or employed.
7. The term "Administrator as used herein means the Adminis-
trator for Industrial Recovery duly appointed under the Act.
8. The term South as used herein means the territory of the
following States: Alabama, Arkansas, Florida, Georgia, Kentucky,
Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina,
Tennessee. Texas, Virginia, and West Virginia.

1. Mac~inm u Hn Hours.-Employees shall not be permitted to work
in excess of forty hours per week, subject to the flexible provision
that because of the exigencies of the Industry it may be necessary
to work employees more than forty hours per week on occasion, pro-
vided that no such employee shall work more than an average of
forty hours per week during any twelve months and, provided
further that no such employee shall be permitted to work in excess
of forty hours for more than twenty weeks during any twelve months


and not more than forty-eight-hours in any one week. Supervisors,
receiving and shipping crews and truckmen may be employed with
a tolerance of four hours in excess of the standard maximum hours
stated herein. Firemen and watchmen may be employed up to fifty-
six hours per week.
These restrictions do not apply to executives, supervisory, labora-
tory and office employees, engineers, and electricians who receive $35
or more per week (but such employees who receive less than $35 per.
week shall be subject to the maximum hours provided herein), nor
outside sales employees.
The hours in each week during which any employee shall have
worked in other establishments or in other industries, shall be in-
cluded in the total number of hours such employee is permitted to
work under this Code.
2. JlMilmni m Wlage.-(a) No employee shall be paid for cotton
and rayon yarn processing less than thirty-two and one half cents per
hour or thirteen dollars for forty hours of labor; and for all pro-
cessing less than thirty-five cents per hour or fourteen dollars for
forty hours of labor; provided, however, with respect to commission
dyeing and/or finishing of hosiery, that the minimum wage for forty
hours of labor for each class of worker shall be that provided in
this paragraph, or that provided in Sections 1 and 2 of Article V
of the Code of Fair Competition for the Hosiery Industry, which-
ever, in any case, may be higher.
Employees in the South may be paid not more than two and one
half cents per hour less than the minimum rates prescribed in the
foregoing paragraph.
The provisions for a minimum wage in this Code shall establish a
guaranteed minimum rate of pay per hour of employment, regardless
of whether the employees' compensation is otherwise based on a
time rate or piecework performance.
(b) No employee shall receive for forty hours of labor less com-
pens.ation than he received or would have received as of May 1st,
1933, for not exceeding fifty-two hours per week, and the wage differ-
entials for all operations shall be equitably readjusted.
Within thirty (30) days after the effective date every member of
the industry shall report to the Code Authority action taken by him
with respect to adjustment of wages above the minimum.
3. ,;.i-wr.-.-No employee under sixteen years of age shall be em-
ployed in the Industry and no employee under eighteen years of age
shall be employed in any wet processing operation.
4. Machine Hours.-Cone winding machines, reels, through tube
cop machines and parallel tube winding machines used in the produc-
tion of cotton mercerized yarn only shall be subject to the limitation
of hours of operation provided for similar machinery in the Code
of Fair Competition for the Cotton Textile Industry. il
5. Employees shall have the 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
in self-organization or in other concerted activities for the purpose
of collective bargaiining or other mutual aid or protection.
6. No employee and no one seeking employment shall be required

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as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
7. Employers shall comply with the maximum hours of labor
minimum rates of pay. and other conditions of empilloiyment approved
or prescribed by the President.
8. Within each State, members of the Industry shall comply with
ari i tato laws, imposing more stringent requirements regulating
licensing, the age, wages, or hours of labor of employees, than under
this Code.
9. Reclassificafion of Employyee.-.No employer shall reclassify
employees or duties of occupation performed or engage in any other
subterfuge for the purpose of defeating the purposes or provisions
of the Act or of this code.


1. (a) To effectuate further the policies of the Act, a Textile
Processing Code Authority is hereby designated to cooperate with
the Administrator as a Planning and Fair Practice Agency for the
Industry. This Code Authority shall consist of seven representa-
tives of the Industry elected by a fair method of selection, to be
approved by the Administrator, and up to three members, without
vote and without cost to the Indutry, appointed by the Adminis-
trator. Such agency may from time to time present to the Admin-
istrator recommendations based on conditions in the Inldu-try as
they may develop which will tend to effectuate the operation of the
provisions of this Code and the policy of the Act; such reconreninda-
tions when approved by the Administrator shall have the samen force
and effect as any other provision of this Code.
(b) Such agency is also set up to cooperate with the Almiinis-
trator in making investigations as to the functioning and oble-rvance
of any provisions of this Code, at its own instance or on complaint
by any person affected, and to report the same to the Adminiitrator.
(c) In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
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, he may require an applropri-
ate modification in the method of selection of the Code Authority.
(d) It shall be the duty of the Code Authority for this Industry
to designate representatives to act on a joint committee with repre-
sentatives of any other Code Authority of a related industry having
reciprocal provisions in its code to consider questions regarded by
either Code Authority as of common concern with reference to the
effectuation of the policies of the Act (including questions as to
whether the operations of a given concern come within the jurisdic-
tion of one or the other of the respective Codes), and to take such
action as they may jointly agree to be appropriate subject to the veto
of the Administrator.


(e) With a view to keeping the President informed as to the
observance 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 in such form as the Code Authority
may require to the Code Authority hereinbefore provided, or to
such agency or agencies as the Code Authority may designate. These
reports shall contain such information as the Code Authorityiamay
require, subject to the approval of the Administrator. Such reports
shall be deemed confidential and shall not be divulged except as
part of general statistics for the Industry or a general part thereof,
except where a violation of the Code is suspected...
(f) Every member of the Industry shall furnish to any govern-
ment agency or agencies designated by the Administrator such sta-
tistical information as the Administrator may, from time to time,
deem necessary for the purpose recited in Section 3 (a) of the Na-
tional Industrial Recovery Act, and any reports and other informa-
t!on collected and compiled by a Code Authority as heretofore pro-
vided shall be transmitted to such government agencies as the
Administrator may direct.
2. All employers engaged in the Industry and coming under the
operation of this Code shall bear their proportionate share of the
expense of administrating this Code of Fair Competition.
The reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the. Adminis-
trator, on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration. These
funds shall be paid to the Code Authority or its duly constituted
agency for that purpose.
3. If the Administrator shall determine that any action of a code
authority or any agency thereof is unfair or unjust or contrary to
the public interest, the Administrator may require that such action
be suspended for a period of not to exceed thirty days to afford
an opportunity for investigation of the merits of such action and
further consideration by such code authority or agency pending final
action, which shall be taken only upon approval by the Administrator.


1. No provision of this Code shall be permitted to operate in such
manner as to promote monopolies or monopolistic practices or to
eliminate or oppress small enterprises or to discriminate against
2. The labor provisions of this Code and of other applicable Codes
shall be posted in each plant in the Industry, as directed by the Code i.
3. This Code and all the provisions thereof are expressly made
subject to the right of the President. in accordance with the provi- ;:;
sions 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 to the right of the President to
cancel or modify his approval of this Code or any conditions imposed
by him upon his approval thereof.
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4. Such of the provisions of this Code as are not required to be
included therein by the Act may, with the approval of the Adminis-
trator, be modified or eliminated as changes in circumstances or
experience may indicate. It is contemplated that from time to time
supplementary provisions to this Code or additional codes will be
submitted for the approval of the Administrator to prevent unfair
competition in price and other unfair and destructive competitive
prBctie'es and to effectuate the other purposes and policies of Title I
of the Act consistent with the provisions hereof.


This Code shall become effective the first *Monday after date.
Approved Code No. 235.
Registry No. 299-1-13.




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