UNIVERSITY OF FLORIDA
3 1262 08486 7927
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Registry No. 299-25B
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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON FEBRUARY 5. 1934
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Approved Code No. 262
CODE OF FAIR COMPETITION
SHOULDER PAD MANUFACTURING INDUSTRY
As Approved on February 5, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE SHOULDER PAD
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 Shoulder Pad 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 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.
HucH S. JOHNSON,
Administrator for Industrial Recovery.
A. D. WHITESIDE,
February 5, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: The Public Hearing on the Code of Fair Competition for the
Shoulder Pad Manufacturing Industry, as proposed by the National
Association of Shoulder Pad Manufacturers, Inc., was conducted in
Room 2062, Department of Commerce Building, Washington, D.C.,
on October 31, 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 Conunittee of the submitting association, upon authoriza-
tion 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 of
shoulder pads and sleeve heads made from several partly processed
materials, namely, carded and/or garnetted china cotton, cotton
waste, wool waste, weddings, and muslin stitched together to form a
padding or mattressing for building up of the shoulders, necks, and
sleeves of men's and women's coats. The articles enumerated herein,
when made in clothing factories and used in connection with the
garments manufactured in such factories, are exempted from the
provisions of this Code.
The Shoulder Pad Manufacturing Industry is a supply industry
selling to the manufacturers of men's and women's coats. The defini-
tion limits application of the Code to the shoulder-pad manufacturers
whose product is used by and sold to the clothing manufacturing
The submitting association represents 19 of the approximately 22
shoulder pad manufacturers in the United States and 93% of the
industry in volume of business and number of employees. The ag-
gregate annual sales in 1932 was $1,452,000; the aggregate invested
capital in 1932 was $963,000, and the number of employees in 1932
RESUoM OF THE CODE
Article I gives the purpose of the Code.
Article II sets forth certain definitions.
Article III contains the maximum hour provisions of the Code and
restricts the number of shifts of employees in any one day to one.
Article IV establishes the minimum wage for all employees em-
ployed in the industry.
Article V sets forth the general labor provisions.
Article VI provides for the organization of the Code Authority
and defines its powers.
Article VII defines trade practices which are unfair and shall be
Article VIII provides for the modification of the Code in accord-
ance with Section 10 (b) of the National Industrial Recovery Act.
Article IX states that this Code shall not permit monopolies.
Article X fixes the effective date as the tenth day after its
approval by the Administrator.
No part of the industry is unionized. The testimony brought out
at the Public Hearing showed uniformly satisfactory labor relations.
Previous to the President's Reemployment Agreement, according to
testimony presented at the hearing, the wages paid in the Shoulder
Pad Industry were considerably lower than those provided in this
Code. The wage and hour provisions are closely related to those
of the Men's Clothing Code and meet with the approval of the
Labor Advisory Board.
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 pro-
ceedings 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 in-
dustry 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 practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing 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 limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaid In-
dustry; and that 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
For these reasons the Code has been approved.
HUGH S. JOHNSON,
FEBRUARY 5, 1934.
CODE OF FAIR COMPETITION FOR THE SHOULDER PAD
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 Shoulder Pad Manufacturing Industry
and shall be the standards of fair competition for this industry and
shall be binding upon every member thereof.
1. The term industry as used herein includes the manufacture
of shoulder pads and sleeve heads, made from several partly proc-
essed materials, namely, carded and/or garnetted china cotton,
cotton waste, wool waste, weddings and muslins, stitched together
to form a padding or mattressing for building up the shoulders,
necks, and sleeves of men's and women's coats. The article enu-
merated herein when made in clothing factories and used in connec-
tion 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 apprentice as used herein shall mean any employee
performing a machine operation who has not been employed in the
industry for a full period of ten (10) weeks.
ARTICLE III-HouRS OF LABOR
1. No employee shall be permitted to work in excess of thirty-six
(36) hours in any one (1) week, or eight (8) hours in any twenty-
four (24) hour period, except as hereinafter provided.
2. The provisions of this Article shall not apply to employees
engaged in an executive, managerial, or supervisory capacity and
receiving $35 per week or more and who are not in any way engaged
in productive labor; nor to outside salesman.
3. Office employees, chauffeurs, shipping and stock clerks, and
outside errand boys shall not be permitted to work in excess of
forty (40) hours in any one week.
4. The maximum number of hours of overtime which any em-
ployee may work in any six (6) months' period shall be twenty-
five (25) hours. 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
a rate of not less than time and one third the normal wage.
5. No overtime in addition to that herein provided for shall be
permitted, except upon the recommendation of the Code Authority
and approval of the Administrator and under such conditions and
upon such terms as the Administrator may 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 max-
imum permitted herein.
7. No home work shall be permitted by members of the industry.
8. No member of the industry shall operate more than one (1)
shift of employees in any one day.
ARTICLE IV-RATES OF PAY
1. No employee shall be paid at less than the rate of thirteen (13)
dollars per week, except as hereinafter provided.
2. No apprentice shall be paid at less than 80% of the minimum
wage per week of 36 hours for the first five weeks of employment,
and not less than 90% of the minimum wage per week of 36 hours
for the next five weeks of employment, and thereafter at not less than
the regular minimum rate otherwise provided in this Code, provided,
however, that at no time shall the total number of apprentices em-
ployed by any one employer exceed in number 10% of the total num-
ber of machine operators of such employer. Each employer shall be
entitled to at least one apprentice.
3. 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 out of this provision. The provisions of this
section shall be subject to review by the Administrator.
4. No employee shall be paid less than the minimum wages set
forth in this Article, regardless of whether such employee is com-
pensated on a time-rate or a piece-rate basis.
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 trans-
mitted 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 an 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 March 1, 1934, a list of such
occupations. In any State an employer shall be deemed to have com-
plied 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 pur-
pose 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-
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 or of this Code.
7. Each employer shall post complete copies of Articles I, II, III,
IV, and V of this Code in conspicuous places accessible to employees.
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 three or more members
who shall be selected by the Board of Directors of the National
Association of Shoulder Pad Manufacturers and of such additional
members, without vote and without expense to the Industry, not
to exceed three (3), as the Administrator may appoint to represent
such groups or interests or such governmental agencies as he may
(b) Each trade or industrial association directly or indirectly
participating 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 asso-
ciation, bylaws, regulations, and any amendments when made thereto,
together with such other information as to membership, organiza-
tion, 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 to
change from time to time the method of selection and to change the
organizations selecting the members of the Code Authority, in order
that it shall be truly representative of the Industry.
(e) 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 fur-
ther consideration by such code authority or agency pending final
action, which shall be taken only upon approval by the Admin-
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act:
(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 investigation and after such hear-
ing as it may deem proper, to make recommendations thereon 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 ade-
quate 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 anyone of any existing obligation to furnish reports
to government agencies.
(e) To delegate to such trade associations and other agencies as it
deems proper the carrying out of any of its activities provided for
herein, and to pay such agencies the cost thereof, provided that such
agencies shall at all times be subject to and comply with the provi-
sions of this Code, and that nothing herein shall relieve the Code
Authority of its responsibility for the administration of this Code.
(f) To coordinate the administration of this Code with such other
codes, if any, as may be related to the Shoulder Pad 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 rec-
ommendations for the adoption of fair trade practices and otherwise
assist the Administrator in effecting the purposes of this Code and
(h) To provide ways and means for financing the operation of
said Code Authority and to determine an equitable method of appor-
tioning in the Industry the Cost of administering this Code. Money
raised in any manner shall not exceed in amount such reasonable
(i) To cooperate with the Administrator in regulating the use of
the N.R.A. insignia solely by those employers who are complying
with and have assented to this Code.
(j) The Code Authority shall have the power to investigate and
adopt a uniform system of cost accounting for products manufactured
by the Industry which when so adopted shall become the standard
for the Industry; except that cost accounting systems now used by
members of the Industry, which are substantially the same as the
system recommended or which reflect the same basis of established
cost, may be retained. The provisions of this section shall be subject
to the approval of the Administrator.
3. Members of the Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and par-
ticipate 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. The reason-
able share of the expenses of its administration shall be determined
by the Code Authority subject to the approval of the Administrator
on the basis of the volume of business and/or such other factors
as may be deemed equitable to be taken into consideration.
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, 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 or branding
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. Misrepresentation or False or Misleading Advertising.-The
making of or causing or knowingly permitting to be made or pub-
lished 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
preparation of any product of the industry or the credit terms,
values, policies, or services of any member of the industry, or other-
wise, having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
3. Commercial Bribery.-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 employee, the principal of such agent, or the represented
party, without the knowledge of such employer, principal, or party.
Commercial bribery provisions shall not be construed to prohibit a
general distribution of articles commonly used for advertising, ex-
cept so far as such articles are actually used for commercial bribery
as hereinabove defined.
4. Interference iLith 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. Giving of Prizes, Premiums, or Gifts.-The offering or giving
of prizes, premiums, or gifts in connection with the sale of products,
or as inducement thereto, by any scheme which involves lottery,
misrepresentation, or fraud.
7. 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.
8. 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.
9. 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.
10. Selling Below Cost.-No member of the industry shall sell
any article at a price below his individual cost except as hereinafter
provided. 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, Section 2, Subsection (j).
11. 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
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with.the provi-
sions 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
on approval of the President.
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 tenth day after its ap-
proval by the President.
Approved Code No. 262
Registry No. 299-25B.