UNIVERSITY OF FLORIDA
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3 1262 08486 7935
Registry No. 299-04
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JANUARY 16, 1934
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Approved Code No. 214
CODE OF FAIR COMPETITION
SLIT FABRIC MANUFACTURING INDUSTRY
As Approved on January 16, 1934
APPROVING CODE OF FAIR COMPETITION
SLIT FABRIC MANUFACTURING 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 Slit Fabric Manufacturing 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 an-
nexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. D. WHITESIDE,
WASHINGTON, D.C., January 16, 1934.
The White House.
SmI: The public hearing on the Code of Fair Competition for
the Slit Fabric Manufacturing Industry, as proposed by the Na-
tional Association of Slit Fabric Manufacturers, Inc., was con-
ducted in Room 2062, Department of Commerce Building, Wash-
ington, D.C., on October 30, 1933. Every person who requested an
appearance was fairly heard in accordance with regulations of the
National Recovery Administration. The Code has the approval
of the Labor, Industrial and Consumers' Advisory Boards of the
National Recovery Administration and of the Legal Division. The
Chairman of the Code Committee of the submitting Association upon
authorization of the Committee has also given his approval to the
final draft of the Code on behalf of the Industry.
DESCRIPTION OF THE INDUSTRY
The industry as defined in the Code includes the manufacture and
sale by the manufacturer or jobber of slit fabrics for bindings,
pipings, trouser curtains, waist-band canvas and trimmings for use
of and sale to the cutting-up manufacturing trades. The Slit Fabric
NManufacturing Industry is a "supply" industry. Its customers
are the cutting-up manufacturing trades composed mainly of manu-
facturers of wearing apparel. The definition limits the application
of the Code to the Slit Fabric Manufacturers whose product is used
by and sold to the cutting-up manufacturing trades. This excludes
from the provisions of this Code those few garment manufacturing
firms which produce slit fabrics not for sale to others but for con-
sumption by themselves as part of their finished garment. It also
excludes those slit fabric manufacturers known as a box trade whose
problems are different and whose product is destined solely for sale
"over the counter" at retail. Likewise excluded by this limitation
in the definition are manufacturers of slit fabrics used by and sold
to the shoe, electrical equipment and rubber tire industries.
The submitting Association has offered the following general sta-
tistics which are descriptive of the industry.
Total Firms in the Industry -------_______---_______ 100
Aggregate Annual Sales, 1932______________________ $8,000,000
Aggregate Invested Capital, 1933_--------------- $3,700, 000
Employees-------------------_ --- -----____-- 1, 700
RESUME OF THE CODE
ARTICLE I states the purpose of the Code.
ARTICLE II sets forth certain definitions.
ARTICLE III contains the maximum hour provisions of the Code,
prohibits the employment of workers in homes and limits the opera-
tion of each plant in the industry to one shift per day.
ARTICLE IV establishes the minimum wage for all employees
employed in the industry.
ARTICLE V contains the general labor provisions including a provi-
sion prohibiting child labor as well as the mandatory labor provisions
required by the Act.
ARTICLE VI sets up a Code Authority and defines its powers and
ARTICLE VII provides for the elimination of certain unfair trade
ARTICLE VIII provides the methods of modifying the Code.
ARTICLE IX contains the mandatory provisions referring to mo-
nopolies and discrimination against small enterprises.
ARTICLE X states the effective date of the Code.
LABOR PROVISIONS OF THE CODE-POSSIBLE REEMPLOYMENT
Being primarily a service industry and using as it does generally
cotton fabrics, the industry employs workers with no high degree of
skill and is close to the cotton textile industry in its general position.
It seems reasonable therefore that its wage and hour provisions
should be largely determined by those applying in the cotton textile
and other similar industries.
It is noteworthy that the number of employees is reported to be
about the same in 1933 as in 1928 and 1930. From June to October
1933 there was an increase of 110 employees. This represents in part
the effect of the application of the President's Reemployment Agree-
ment. It is estimated by the Industry that from 30% to 40% of all
employees received wage increases as a result of the application of
the President's Reemployment Agreement and that most of these
were female employees. The minimum wages paid in the industry
prior to the President's Reemployment Program are stated to have
been $8, $9, and $10 per week. Proponents of the Code assert that
the present pay roll represents an increase from 50% to 200% over
those paid before the adoption of the President's Reemployment
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 com-
merce which tend to diminish the amount thereof and will provide
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 supervisions, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity o industries, by avoid-
ing undue restriction of production (except as may be temporarily
required). by increasing the consumption of industrial and agricul-
tural 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 group
is an industrial group truly representative of the aforesaid Industry;
and that said group 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
For these reasons, this Code has been approved.
HUGH S. JOHNSON,
JANUA r 16, 1934.
CODE OF FAIR COMPETITION
SLIT FABRIC MANUFACTURING 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 Slit Fabric Manufacturing Industry and
shall be the standard of fair competition for this industry and shall
be binding upon every member thereof.
1. The term industry as used herein includes the manufacture
and sale by the manufacturer or jobber of slit fabrics for bindings,
pipings, trouser curtains, waistband canvass and trimmings for use
of and sale to the cutting-up manufacturing trades. The articles
enumerated herein when made in clothing factories and used in con-
nection with the garments manufactured in such factories are
exempted from the provisions of this Code.
2. 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
3. The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
4. The term member of the industry includes anyone engaged
in the industry as above defined, either as an employer or on his
5. The terms "Act" and "Administrator" as used herein shall
mean, respectively, Title I of the National Industrial Recovery Act
and the Administrator for Industrial Recovery.
6. The term Southern Section of the United States" as used
herein shall include the States of Alabama, Florida, Georgia, Ken-
tucky, Louisiana, Mississippi, North Carolina, South Carolina,
Tennessee, Texas, and Virginia.
7. The term Northern Section of the United States" as used
herein shall include all the States in the United States not specifically
included within the Southern Section of the United States, and
the District of Columbia.
8. The term jobber as used herein includes all those for whom
and/or under whose directions or orders slit fabrics for bindings,
pipings, trouser curtains, waist-band canvas and trimmings are
manufactured in whole or in part by contractors and/or other man-
ufacturers, and who act as wholesale distributors thereof.
9. The term manufacturer" as used herein includes all those who
manufacture slit fabrics as defined in Section 1 of Article II.
ARTICLE II--HOURs OF LABOR
1. Except as hereinafter provided no employee shall be permitted
to work in excess of forty (40) hours in any one week or eight (8)
hours in any twenty-four (24) hour period.
2. The provisions of this Article shall not apply to those persons
engaged in an executive, managerial, or supervisory capacity earn-
ing $35.00 per week or more, and who are not engaged in any way in
productive labor; nor to outside salesmen.
3. Chauffeurs, shipping clerks, and outside errand boys shall not be
permitted to work in excess of 44 hours in any one week.
4. The maximum number of hours of overtime which any employee
may work in any six (6) months' period shall be twenty-five (25)
hours, and in no event shall any employee be permitted to work more
than one (1) hour overtime per day, or more than five (5) hours
overtime per week. All overtime shall be paid for at not less than
the rate of time and one third.
5. No overtime in addition to that herein provided for shall be
permitted except upon the recommendation of the Code Authority
and the approval of the Administrator and under such conditions
and upon such terms as the Administrator shall prescribe.
6. No employer shall knowingly permit any employee to work
for any time which when totaled with that already performed with
another employer, or employers, in this industry exceeds the
maximum permitted herein.
7. No home work shall be permitted by members of the industry.
8. Not more than one (1) shift of employees shall be allowed
in any one (1) day. The Administrator, upon due showing and
after such notice and hearing as he may prescribe, may grant such
exceptions to this provision as he may deem necessary.
ARTICLE IV-RATES or PAY
1. No employee shall be paid at less than the rate of thirteen
(13) dollars per week when employed in the Northern Section of
the United States, nor less than at the rate of twelve (12) dollars
per week when employed in the Southern Section of the United
States, except as hereinafter provided.
2. Apprentices may be paid not less than at the rate of eighty
percent (80%) of the minimum wage provided for herein for a
period not to exceed eight (8) weeks, provided that at no time shall
the total number of apprentices employed by any one employer exceed
eight percent (8%) of the total number of employees. However, any
employer shall be entitled to employ at least one apprentice.
3. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
4. Wages of those receiving more than the minimum shall be
equitably adjusted so as to preserve the differentials existing on
July 1, 1933. All adjustments of wage rates made in accordance
with this provision shall be reported to the Code Authority within
thirty (30) days of the effective date of this Code.
The Code Authority shall have the power to investigate and adjust
complaints arising under this provision; adjustments by the Code
Authority shall be subject to review by the Administrator.
5. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
6. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed at a wage below the
minimum established by this Code under the following conditions:
(a) That they shall be paid proportionately no less than the other
employees in the same factory receive for similar work, but in no
case shall their compensation amount to less than seventy percent
(70%) of the amount required by the minimum wage provisions of
(b) That the employer shall at once prepare and transmit to the
Code Authority a list of such excepted persons stating name, class
of occupation, wage rate, length of service, and reason for exception.
This list shall be revised up-to-date once each month and transmitted
to the Code Authority.
(c) The proportion of excepted persons to total employees at any
time shall not exceed the proportion of such employees on the pay
roll during the week of July 15, 1933.
(d) The Code Authority shall have the right to investigate and
disallow any such claims for exception subject to review by the
Administrator upon appeal by any employer or employee.
(e) The Code Authority shall report to the Administrator within
three (3) months and from time to time thereafter as to the effect
of the operation of this provision, both generally and in cases of
ARTICLE V-GENERAL LABOR PROVISIONS
1. No person under 16 years of age shall be employed in the indus-
try, nor anyone under 18 years of age at operations or occupations
hazardous in nature or detrimental to health. The Code Authority
shall submit to the Administrator before February 1, 1934, a list of
such occupations. In any State an employer shall be deemed to have
complied with this provision if he shall have on file a certificate or
permit duly issued by the authority in such State empowered to
issue employment or age certificates or permits, showing that the
employee is of the required age.
2. 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 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 re-
frain from joining, organizing, or assisting a labor organization of
his own choosing; and
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
5. Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employers regu-
r lating the age of employees, wages, hours of work or health, fire, or
general working conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees or engage in any subterfuge so as to
defeat the purposes of the Act.
7. Each employer shall post in conspicuous places accessible to
employees copies of Articles III, IV, and V of this Code.
A Code Authority is hereby constituted to cooperate with the
Administrator in the administration of this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of not less than five (5)
nor more than eight (8) members, five (5) of whom shall be selected
by the Board of Directors of the National Association of Slit Fabric
Manufacturers, Inc., and not more than three (3) of whom, without
vote and without expense to the Industry, may be appointed by the
Administrator to represent such groups or interests or such govern-
mental agencies as he may designate.
(b) 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)
Submit 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.
(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, may require an appropriate
modification in the method of selection of the Code Authority.
(d) The Administrator shall entertain complaints and provide
such hearings as he may deem proper for those claiming the right
to be represented on the Code Authority, and shall have the right
from time to time to change the method of selection and the organiza-
tion selecting the members of the Code Authority, in order that it
shall be truly representative of the industry.
(e) If it shall be represented to the Administrator by any inter-
ested party, or he shall determine upon his own motion, that any
action of the Code Authority, or of any subdivision Code Authority,
is unfair to any private interest or contrary to the public interest, the
Administrator may require that such action be suspended for a period
of not to exceed thirty (30) (lays to afford an opportunity for Inves-
tigation of the merits of such complaint and further consideration
by the Code Authority pending final action, to be taken only upon
approval by the Administrator.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act and subject to the right of the
Administrator or his Deputy on review to disapprove any action
taken by the Code Authority.
(a) To elect officers and to assign to them such duties as it may
consider advisable, and to provide rules for its procedure, and its
continuance as the administrative agency of this Code, in accordance
with the terms of the Act and the principles herein set forth.
(b) To receive, investigate, and adjust complaints of violations of
this Code, and based upon such investigations and after such hearings
as it may deem proper, to make recommendations in respect thereto
to the proper authorities for the prosecution of such violations.
(c) To obtain from time to time from employers in the industry
reports in respect to wages, hours of labor, conditions of employment,
number of employees, and other matters pertinent to the purposes of
this Code, as the Code Authority may prescribe, and to submit peri-
odical reports to the Administrator in such form and at such times as
he may require, in order that the President may be kept informed
with respect to the observance thereof.
No individual reports shall be disclosed to any other member of
the industry or any other party except to such governmental agencies
as may be directed by the Administrator.
(d) In addition to the information required to be submitted to
the Code Authority, all members of the industry shall furnish such
adequate 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 designate. Nothing
in this Code shall relieve any one of any existing obligation to
furnish reports to government agencies.
(e) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, and to pay such agents the cost thereof; provided, that such
agency shall at all times be subject to and comply with the provi-
sions of this Code; and provided further, that nothing herein shall
relieve the Code Authority of any of its duties and responsibilities
(f) To coordinate the administration of this Code with such
other codes, if any, as may be related to the Slit Fabric Manufactur-
ing Industry, or any subdivision thereof, with a view to promoting
joint and harmonious action upon matters of common interest.
(g) To make surveys, to compile reports, to collect statistics
and trade information, to investigate unfair trade practices, to make
recommendations for fair trade practices, and otherwise assist the
Administrator in effecting the purposes of this Code and the Act.
(h) To provide ways and means for financing the operation of
said Code Authority and to determine an equitable method of ap-
portioning in the industry the cost of administering this Code.
Money raised in any manner shall not exceed in amount such reason-
(i) To cooperate with the Administrator in regulating the use
of the N.R.A. insignia solely by those employers who have assented
to this Code.
(j) Subject to the approval of the Administrator, the Code Au-
thority shall have the power to adopt a uniform cost-accounting
system for the industry, which when so adopted shall be the standard
cost-accounting system for the Industry.
3. Members of the industry 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 by assenting to
and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. Such
reasonable share of the expenses of administration shall be deter-
mined 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.
4. The Code Authority shall study provisions relating to trade
practices, investigate the observance thereof, and make such recom-
mendations thereon to the Administrator as it shall deem advisable.
Upon the approval of the Administrator and after such hearing as
he may prescribe, such recommendations, or any part of them, as
may be so approved, shall become a part of this Code and shall have
full force and effect as provisions hereof.
ARTICLE VII-TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
1. False Marking or Branding.-The false marking, branding, or
invoicing of any product of the industry which has the tendency
to mislead or deceive customers or prospective customers, whether
as to its grade, quality, quantity, substance, character, nature, origin,
size, finish, its preparation, or otherwise.
2. MAisrepresentation or False or Misleading Ad.vertising.-The
making or causing or knowingly permitting to be made or published
any false, materially inaccurate, or deceptive statement by way of
advertisement, or otherwise, whether concerning the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepara-
tion of any product of the industry, or the credit terms, values, pol-
icies, or services of any member of the industry, or otherwise, having
the tendency or capacity to mislead or deceive customers or prospec-
3. Commercial Bribery.-No member of the industry shall give,
permit to be given, or directly 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 employee, the principal of such agent, or the rep-
resented party without the knowledge of such employer, principal
or party. Commercial bribery provisions shall not be construed to
prohibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for com-
mercial bribery as hereinabove defined.
4. Interference with Contractual Relations.-Maliciously inducing
or attempting to induce the breach of an existing 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.
5. Secret Rebates.-The secret payment or allowance of rebates,
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or the secret extension to certain pur-
chasers of special services or privileges not extended to all purchasers
on like terms and conditions.
6. Defamation.-The defamation of competitors by falsely im-
puting to them dishonorable conduct, inability to perform contracts,
questionable credit standing, or by other false representations, or
by the false disparagement of the grade or quality of their goods.
7. Threats of Litigation.-The publishing or circularizing of
threats or suits for infringement of patents or trade marks or of any
other legal proceedings not in good faith, with the tendency or effect
of harassing competitors or intimidating their customers.
8. Espionage of Competitors.-Securing confidential information
concerning the business of a competitor by a false or misleading
statement or representation, by a false impersonation of one in
authority, by bribery, or by any other unfair method.
9. Consigned Merchandise.-No member of the industry shall ship
goods on consignment or memorandum except under circumstances
to be defined by the Code Authority where peculiar circumstances of
the industry require the practice.
10. Selling Below Cost.-No member of the industry shall sell any
article at price below his individual cost except as hereinafter pro-
vided. Any member of the industry may meet the price of any other
member of the industry whose cost under this provision is lower and
may sell dropped lines or distress merchandise below such cost if
approval of such sale is first obtained from the Code Authority.
For this purpose, costs shall be determined by the Uniform Cost
Accounting System provided for in the foregoing Article VI, Sec-
tion 2, Subsection (j).
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 National Industrial
Recovery 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 conditions
imposed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to be based upon application to the Administrator and
such notice and hearing as he shall specify, and to become effective
upon approval of the Administrator.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE X-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 214.
Registry No. 299-01.