UNIVERSITY OF FLORIDA
1111l II 111II 1 Illll 111111 ll II 11111111III I
3 1262 08486 7661
Registry No. 299-1-38
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
TEXTILE EXAMINING, SHRINKING
AND REFINISHING INDUSTRY
AS APPROVED ON AUGUST 6, 1934
WE DO OUR PART
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Approved Code No. 497
CODE OF FAIR COMPETITION
TEXTILE EXAMINING, SHRINKING AND
As Approved on August 6, 1934
CODE OF FAIR COMPETITION FOR THE TEXTILE EXAMIINNG, SHRINKING
AND REFINISHING INDUSTRY
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 Examining, Shrinking and Refin-
ishing 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
President, including Executive Order No. 6543-A, dated Decem-
ber 30, 1933, and otherwise; do hereby incorporate by reference
said annexed report and do find that said Code complies in all
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 Competition be and it is hereby approved; pro-
vided, however, that members of the Cotton Textile Industry oper-
ating under the Code of Fair Competition for the Cotton Textile
Industry and its provisions governing the shrinking, finishing, and
similar processing of Cotton Textiles shall, for the purposes of this
Code not be deemed members of this Industry; and provided fur-
ther, that the National Textile Finishers Association shall, within
sixty (60) days from the date of this Order, amend that part of
Article II, Section 2 of the By-Laws of said Association which pro-
vides that an applicant for membership must receive an affirmative
vote of the majority of the Board of Directors, so as to render it
inapplicable to applicants for Code Membership, and also amend
Article VIII, Sections 2 and 3 of the By-Laws of said Association to
make conviction for a Code violation in a Court of competent juris-
diction or non-payments of dues, or the ceasing to be a member of
the Industry the only grounds for suspension and,'or expulsion of
a Code Member.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
WILI.I.-A P. FARNSWORTH,
Acting Division Administrator.
Auqust 6, 1934.
REPORT TO THE PRESIDENT
The White House.
Smn: The Public Hearing on the Code of Fair Competition for
the Textile Examining, Shrinking, and Refinishing Industry was
conducted in Washington, D.C., March 10, 1934.
Every person who requested an appearance was fairly heard in
accordance with the regulations of the National Recovery Admin-
The Industry as defined in the Code includes the services of ex-
amining, sponging or shrinking, double sponging or shrinking,
decating, london, or water shrinking and refinishing of woolen and
other woven fabrics owned by others.
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, 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 cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practice, 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 Associ-
ation is an industrial association truly representative of the afore-
said industry, and that the said association imposes no inequitable
restrictions 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 Code.
For these reasons the Code has been approved.
HUGH S. JOHNSON,
AUGUST 6, 1934.
CODE OF FAIR COMPETITION FOR THE TEXTILE EX-
AMINING, SHRINKING AND REFINISHING INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Textile Examining, Shrinking, and
Refinishing Industry, and shall be the standard of fair competition
for such Industry and shall be binding upon every member thereof.
1. The term Textile Examining, Shrinking, and Refinishing
Industry as used herein means and includes the services of exam-
ining, sponging, or shrinking, double sponging or shrinking, de-
cating, london, or water shrinking and refinishing of woolen and
other woven fabrics owned by others, and such related branches
or subdivisions as may from time to time be included under the
provisions of this Code or specifically excluded therefrom by the
2. The term member of the industry includes, but without
limitation any individual, partnership, association, corporation,
or other form of enterprise engaged in the Industry either as an
employer or on his or its own behalf.'
3. The term employee as used herein means and includes any
person engaged in any phase of the Industry, in any capacity, re-
ceiving compensation for his services, irrespective of the nature
or method of payment of such compensation, including members
of the Industry who may do the same work as employees.
4. The term employer as used herein means and includes any-
one by whom any such employee is compensated or employed.
5. The term President "Act ", and "Administrator ", as used
herein shall mean respectively, President of the United States, Title
I of the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.
1. No employee shall be permitted to work in excess of forty (40)
hours per week, nor more than eight (8) hours in any twenty-four
(24) hour period, except as herein otherwise provided.
2. No employees engaged in emergency maintenance or emergency
repair work or as watchmen shall be permitted to work in excess of
forty-four (44) hours in any one week.
1 See paragraph 2 of order approving this Code.
3. The provisions of this Article shall not apply to outside sales-
men or to persons employed in a managerial or executive capacity
who earn not less than thirty-five ($35.00) dollars per week.
4. No employer shall knowingly engage any employee for any time
which, when totaled with that already performed with another em-
ployer or employers, exceeds the maximum hours per week per-
1. No manufacturing employee shall be paid at less than a rate of
forty-five cents (450) per hour.
2. No non-manufacturing employee shall be paid less than four-
teen dollars ($14.00) for a week of forty (40) hours.
3. Persons learning a manufacturing occupation shall be paid
not less than at a rate of forty and one-half cents (4010) per hour,
provided: that the number of such learners shall not exceed five per
cent (5%) of the employees of any one employer and that learners
shall not be employed as such for a period in excess of six (6)
months, irrespective of whether they are employed by one or more
4. There shall be an equitable adjustment of wages above the mini-
mum, unless such adjustments have heretofore been made under the
N.R.A. Weekly compensation shall not be reduced because of any
reduction in weekly hours resulting from the provisions of this
Code. All adjustments made since June 16, 1933, shall be re-
ported to the Code Authority within 90 days of the effective date of
5. Females employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
6. This Article establishes the minimum rate of pay which shall
apply irrespective of whether an employee is actually compensated
on a time rate, piece work or other basis.
ARTICLE V-GENERAL LABOR PROVISIONS
1. No person under sixteen (16) years of age shall be employed in
the Industry. No person under eighteen (18) years of age shall be
employed in manufacturing operations. In the event of a claim of
alleged violation of this section, an employer shall be deemed to
have complied with the provisions of this section if he shall have on
file and shall submit a certificate of age issued by the duly author-
ized department of the State in which the employer operates, show-
ing the age of the employee to be no less than the age required by
2. Employees shall have the right to organize and bargain collec-
tively, 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 bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
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. No employer shall reclassify employees or duties of occupations
performed or engage in any subterfuge so as to defeat the provisions
of the Act or of this Code.
6. No provision of this Code shall supersede any law within any
state which imposes more stringent requirements on employers as
to age of employees, wages, hours of work, or as to safety, health,
or sanitary regulations, or insurance, or fire protection, or general
working conditions, than are imposed by this Code.
7. All employers shall post and keep posted copies of this Code
in conspicuous places accessible to all employees. Every member
of the Industry shall comply with all rules and regulations relative
to the posting of provisions of Codes of Fair Competition which
may, from time to time be prescribed by the Administrator.
8. No provisions of this Article shall modify established practices
for privileges as to vacation periods, leaves of absence, or temporary
absence from work heretofore guaranteed to office employees.
9. Every employer shall provide for the safety and health of his
employees during the hours and at the places of their employment.
ARTICLE VI-ORGANIZATION, POWERS, AND DUTIES OF THE CODE
1. A Code Authority is hereby established consisting of-
(a) Six members to represent the Industry, elected by a majority
vote of the membership of the National Textile Refinishers Associa-
tion. The said election shall be under the supervision of the Admin-
istrator or his representative.
(b) One member to represent the members of the Industry who
are unaffiliated with the National Textile Refinishers Associatitn, to
be elected by such members by a method of election approved by the
Administrator and conducted under the supervision of the Adminis-
trator or his representative.
(c) Such additional members without vote, not to exceed three
as the Administrator may appoint to represent the Administrator
for such periods as he may designate.
2. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association,
by-laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
3. 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 prescribe 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, may require an
See paragraph 2 of order approving this Code.
appropriate modification in the method of selection of the Code
4. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for
any act of any other member, officer, agent, or employee of the Code
Authority, exercising reasonable diligence in the conduct of his
duties hereunder, be liable to anyone for any action or omission to
act under this Code, except for his own wilful malfeasance, or
5. If the Administrator shall at any time determine that any
action of the Code Authority or any agency thereof may be unfair or
unjust or contrary to the public interest, or to the Act, the Adminis-
trator may require that such action be suspended to afford an oppor-
tunity for investigation of the merits of such action and further
consideration by such Code Authority or agency pending final action,
which shall not be effective unless the Administrator approves, or
unless he shall fail to disapprove after thirty days' notice to him
of intention to proceed with such action in its original or modified
POWERS AND DUTIES
6. Subject to such rules and regulations as may be issued by the
Administrator, the Code Authority shall have the following powers
and duties, in addition to those authorized by other provisions of
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the Industry with the provisions of
the Act: Provided, however, that this shall not be construed to
deprive duly authorized governmental agencies of their power to
enforce the provisions of this Code or of the Act.
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code;
and in addition to information required to be submitted to the Code
Authority, members of the Industry, subject to this Code, shall
furnish such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act, to
such Federal and State Agencies as the Administrator may desig-
nate; provided that nothing in this Code shall relieve any member
of the Industry of any existing obligations to furnish reports to
any government agency. No individual reports shall be disclosed
to any other member of the Industry or any other party
except to such other governmental agencies as may be directed by the
(d) to use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be'subject to and comply
with the provisions hereof:
(e) To mike recommendations to the Administrator for the co-
ordination of the Administration of this Code with such other Codes,
if any, as may be related to or affect members of the Industry.
(f) (1) It being found necessary to support the Administration
of this Code, in order to effectuate the policy of the Act and to
maintain the standards of fair competition established hereunder,
the Code Authority is authorized:
(a) To incur such reasonable obligations as are.necessary
and proper for the foregoing purposes and to meet such obliga-
tions out of funds which shall be held in trust for the purposes
of the Code and raised as hereinafter provided:
(b) To submit to the. Administrator for his approval, subject
to such notice and opportunity to be heard as he may deem
1. An itemized budget of its estimated expenses for the fure-
going purposes, and
2. An equitable basis upon which the funds necessary to sup-
port such budget shall be contributed by members of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable
contribution as above set forth by all members of the Industry
and to that end, if necessary, to institute legal proceedings
therefore in its own name.
(2) Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Au-
thority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the Industry complying with the Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided, shall be entitled to participate in the selection of the members
of the Code Authority or to receive the benefits of any of its voluntary
(3) The Code Authority shall neither incur nor pay any obligation
in excess of the amount thereof as estimated in its approved budget,
except upon approval of the Administrator; and no subsequent bud-
get shall contain any deficiency item for expenditures in excess of
prior budget estimates except those which the Administrator shall
have so approved.
(g) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade-practice provisions to
govern members of the Industry in their relations with each other
or with other industries, measures for industrial planning, and sta-
bilization of employment; and including modifications of this Code
which shall become effective as part hereof upon approval by the
Administrator after such notice and hearing as he may specify.
(h) 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 Industry for the purpose of formulating fair
trade practices to govern the relationships between employers under
this Code and under such other Codes to the end that such fair trade
practices may be proposed to the Administrator as amendments to
this Code, and such other Codes.
(i) There shall be established an Industrial Relations Committee
for the Industry, which shall consist of an equal number of repre-
sentatives of employers and employees and an impartial chairman.
The Administrator shall appoint such impartial chairman upon the
failure of the Committee to select one by agreement. If no truly
representative labor organization exists1 the employee members of
such board may be nominated by the Labor Advisory Board of the
NRA and appointed by the Administrator. The employer repre-
sentatives shall be chosen by the Code Authority. Such committee
shall deal with complaints and disputes relating to labor in accord-
ance with rules and regulations issued by the Administrator. The
Industrial Relations Committee may establish such divisional re-
gional, and local industrial adjustment agencies as it may deem
desirable, each of which shall be constituted in like manner as the
Industrial Relations Committee.
(j) To appoint a committee to meet with Committees appointed
by the Code Authorities of other industries to bring about uniform-
ity in standards of employment and processing, wherever textile ex-
amining, shrinking and refinishing is performed.
(k) To appoint a committee on safety and health which will study
the number and causes of accidents and health standards in the in-
dustry and report within six (6) months after the effective date of
this Code a comprehensive program to carry out the requirements of
the Administrator in the administration of Article V, Section 9.
(1) To appoint a committee to meet with committees of other
Code Authorities to study and adjust any problems of overlapping
jurisdiction of Codes and to determine specific procedures to be fol-
lowed where certain processes in industries covered by other Codes
are or may be the same as processes covered by this Code, provided
that determinations of said committee or committees shall be subject
to review by the Administrator.
The Code Authority shall cause to be formulated methods of cost
finding and accounting capable of use by all members of the Indus-
try, and shall submit such methods to the Administrator for review.
If approved by the Administrator, full information concerning such
methods shall be made available to all members of the Industry.
Thereafter, each member of the Industry shall utilize such methods
to the extent found practicable. Nothing herein contained shall be
construed to permit the Code Authority, any agent thereof, or any
member of the Industry to suggest uniform auditions, percentages
or differentials or other uniform items of cost which are designed
to bring about arbitrary uniformity of costs or prices.
ARTICLE VIII-TRADE-PRACTICE RULES
1. No member of the Industry shall publish advertising (whether
printed, radio, display, or of any nature), which is misleading or
inaccurate in any material particular, nor shall any member in any
way misrepresent any services, credit terms, values, policies, or the
nature or form of the business conducted.
2. No member of the Industry shall Imowingly withhold from or
insert in any invoice any statement which makes it inaccurate in
any material particular.
3. No member of the Industry shall publish advertising which
refers inaccurately in any material particular to any competitors
or their goods, prices, values, credit terms, policies, or services.
4. No member of the Industry shall publish or circulate unjust
or unwarranted threats of legal proceedings which tend to or have
the effect of harassing competitors, or intimidating any of their
5. No member of the Industry shall secretly offer or make any
payment or allowance of a rebate, refund, commission, credit, un-
earned discount, or excess allowance, whether in the form of money
or otherwise, nor shall a member of the Industry secretly offer or
extend to any customer any special service, privilege, or price not
extended to all customers of the same class.
6. No member of the Industry shall give, permit to be given, or
offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such em-
ployee, the principal of such agent of the represented party, with-
out the knowledge of such employer, principal or party. This
provision shall not be construed to prohibit a general distribution of
articles commonly used for advertising, except so far as such articles
are actually used for commercial bribery as hereinabove defined.
7. No member of the Industry shall attempt to induce the breach
of contract between a competitor and his customer or source of
supply; nor shall any such member interfere with or obstruct the
performance of such contractual duties or services.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of subsection (b) of Section 10 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.
2. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modifications to be based upon application to the Admnniistrator
and such notice of hearing as he shall specify', and to become effective
on approval by the Administrator.
This Code shall not be construed or applied to promote or permit
monopolies or monopolistic practices or to eliminate or oppress or
discriminate against small enterprises.
ARTICLE XI-EFFECTrVE DATE
This Code shall become effective on the second Monday after
approval by the Administrator.
Approved Code No. 497.
Registry No. 299-1-38.