Code of fair competition for the sanitary napkin and cleansing tissue industry


Material Information

Code of fair competition for the sanitary napkin and cleansing tissue industry as approved on January 12, 1934
Physical Description:
p.59-68 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Sanitary napkins -- Law and legislation -- United States   ( lcsh )
Tissue paper -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
"Approved Code No.200 ; Registry No.299B-30".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004860913
oclc - 63654467
System ID:

Full Text

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B.P. &proved Code No. 200


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This publication is for itle oy the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
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Approved Code No. 200


As Approved on January 12, 1934



An application having been duly made pursuant to and in full
compliance with the provisions of Title I ot the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Sanitary Napkin and Cleansing Tissue
Industry, and hearings having been duly held thereon and the an-
nexed 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 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 pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
Administrator for Industrial Recovery.
Approval recommended:
Division Administrator.
January 12, 1534.

30483"- 313-11--34


The IWhite House.


SIR: This is a report of the Administrator on the application for,
and public hearing on, the Code of Fair Competition for the Sani-
tary Napkin and Cleansing Tissue Industry as proposed by the Sani-
tary Napkin and Cleansing Tissue Association. The public hearing
was conducted in Washington on November 3, 1933. Every person
who requested an appearance was freely heard in accordance with
statutory and regulatory requirements.
There are twenty-six (26) known firms in this Industry, of which
eighteen (18) are members of the Association and account for 82%
of all sanitary napkins and cleansing tissues produced. One of the
nonmembers attended the public hearing and was heard.


For 1929 the sales volume was almost $13,000,000 and employ-
ment at about 900 to 1,000. The volume of sales for 1933 is esti-
mated to be within 25% of the volume of 1929. The Industry at
present gives employment to about 1,100 to 1,200 workers. Conse-
quently, the Industry has more than absorbed its unemployed as
measured from the 1929 level. With such figures at hand one can-
not expect an appreciable increase in employment under the pro-
visions of the Code. Increased purchasing power is indicated,
nevertheless, because it is estimated that with the proposed minimum
wages there will be at least a 13% increase in pay rolls. The statis-
tics at hand are based on June of 1933 as a representative month,
when approximately 37% of the employees were working in excess
of 45 hours per week with 60 hours or more per week, a top figure.
Rates of pay were as low as 20 per hour for workers although the
weighted average would unquestionably demonstrate a more satis-
factory rate.
In this connection, it is important to remember that two manu-
facturers control about 75% of the total volume. With such a
concentration of production, the Administrator has had to weigh
all provisions carefully so as not to eliminate or oppress small
enterprises, who may not be as highly mechanized as their com-
petitors and who do not enjoy the advantages of large volume.


The Code establishes 412~. per hour for men and 331/% per hour
for women as the minimum rate of pay. The basic week for pro-


S duction is 40 hours. Such provisions will require a substantial con-
S tribution toward national recovery from part of the Industry. I
believe that more drastic limitations at this particular time would
work a hardship upon the smaller firms in the industry.
Trade practices are standard and may be expected to create a
degree of stability which heretofore has been notably lacking.
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 management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of 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 asso-
ciation is an industrial association truly representative of the. afore-
said Industry; 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.
S(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Thpse 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 12, 1934.




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 Sanitary Napkin and Cleansing Tissue
Industry, and shall be the standard of fair competition for such
Industry and shall be binding upon every member thereof.


The term "Sanitary Napkin and Cleansing Tissue Industry"
hereinafter called L" the Industry ", as used herein includes the manu-
facture, conversion, and/or primary distribution of sanitary napt
kins, cleansing tissues, and other similar products and such branches
or subdivisions thereof of as may from time to time be included
under the provisions of this Code.
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
The term "employer as used herein includes anyone by whom
any such employee is compensated or employed.
The term member of the Industry as used herein includes any-
one engaged in the Industry as above defined, either as an employer
or on his own behalf.
The terms President", "Act ", and "Administrator as used
herein shall mean respectively the President of the United States,
the National Industrial Recovery Act, and the Administrator for
Industrial Recovery. *
Population and metropolitan districts for the purposes of this
(ode shall be determined by reference to the 1930 Federal Census.


1. No employee shall be permitted to work in excess of 40 hours
in any one week or 8 hours in any 24-hour period, except-
(a) Employees engaged exclusively in an executive or managerial
capacity who are receiving $35.00 or more per week.
(b) Outside salesmen;


(c) Office employees, who shall be permitted 4 hours per week in
addition to the maximum herein established but who shall not be
permitted to work more than an average of 40 hours per week in any
consecutive 3 months' period.
2. The maximum hours fixed in the foregoing section shall not
apply to any employee engaged in emergency work involving break-
downs or protection of life or property, but in any such special case
employees shall be paid at the rate of not less than one and one third
times the established rate for each hour worked in excess of 8 hours and/or 40 hours in any one week.
3. No female employee shall be required or permitted to work be-
tween the hours of 8 p.m. and 6 a.m.

1. No employee, except as provided in Section 2 of this Article,
shall be paid at less than the rate of 331/V3 per hour for women,
and 41%0 per hour for men. This minimum wage shall not in any
way be considered as a discrimination by reason of sex, and where
in any case women do substantially the same work, or perform sub-
stantially the same duties as men, they shall receive the same amount
of wages as men receive for doing such work or performing such
2. No accounting, clerical, office, service, or sales employee shall
be paid at less than the rate of $15.00 per week in any City of over
500,000 population, or in the Metropolitan District; or less than
at the rate of $14.50 per week in any City between 250,000 and
500,000 population, or in the Metropolitan District; or less than
at the rate of $14.00 per week in Cities of 250,000 or less, or in the
Metropolitan District.
3. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time rate, piecework, or
other basis.
4. There shall be an equitable adjustment of all wages above the
minimum. Within sixty (60) days of the effective date of this Code,
the Code Authority shall present a proposal for such adjustment to
the Administrator, such proposal to become binding as a part of this
Code upon approval by the Administrator after such hearing as he
may prescribe, provided, however, that in no event shall hourly rates
of pay be reduced below those in effect for the 4 weeks ended June
17, 1933.
5. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below the minimum established by this Code if the employer
obtains from the State Authority or other agency designated by the
United States Department of Labor a certificate authorizing his
employment at such wages and for such hours as shall be stated in
the certificate. Each employer shall file with the Code Authority a
list of all such persons employed by him.

1. No person under 16 years of age shall be employed in the In-
dustry, nor anyone under 18 years of age at operations or occupa-

tions hazardous in nature or detrimental to health. The Code Au-
thority shall submit to the Administrator within 30 days after this
Code is approved a list of such occupations. In any State an em-
ployer 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 certificates, 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
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 ap-
proved or prescribed by the President.
5. Employers shall also comply with the hygienic regulations pro-
mulgated by the United States Public Health Service.
6. Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employees regu-
lating the age of employees, wages, hours of work, or health, fire,
or general working conditions than under this Code.
7. Employers shall not reclassify employees or duties of occu-
pations performed by employees so as to defeat the purposes of
the Act.
8. Each employer shall post in conspicuous places accessible to
employees full copies of Articles III, IV, and V of this Code.


To further effectuate the policies of the Act, a Code Authority is
hereby constituted to administer this Code.
1. Organization and constitution of Code Authority.
(a) The Code Authority shall consist of seven members, or such
other number as may be approved from time to time by the Admin-
istrator, to be selected as hereinafter set. forth, and of such addi-
tional members, without vote, as the Administrator, in his discretion,
may appoint to represent such groups or governmental agencies as
lie may designate.
(b) Each member of the Industry who qualifies as prescribed in
Section 2 of this Article shall have one vote in the nomination and
election of the members of the Code Authority, such nomination and
election to be arranged by the proponents of the Code within one
month of the effective date thereof, unless otherwise provided with
the approval of the Administrator. In the interim, the Code Com-
mittee of the Sanitary Napkin and Cleansing Tissue Association shall
act in this capacity. 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 pro-

vide 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 bther respects comply with the provisions of the Act, may
require an appropriate modification in the method of selection of the
Code ,Authority.
(c) The Code Authority shall coordinate the administration of
this Code with such Codes, if any, as may affect any division or sub-
division of this or a kindred Industry, with a view to promoting
joint action upon matters of common interest.
(d) Each 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 As-
sociation, By-Laws, Regulations, and any amendments when made
thereto, together with such .other information as to membership, or-
ganization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
2. Members of the Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority, to par-
ticipate in the selection of the members thereof and to use the N.R.A.
Code insignia by assenting to and complying with the requirements
of this Code and sustaining their reasonable share of the expenses of
preparation, presentation, and administration of this Code. The
reasonable share of such expenses shall be determined by the Code
Authority, subject to approval by the Administrator, on the basis of
volume of business and/or such other factors as may be deemed
equitable to be taken into consideration.
3. The Code Authority shall have, to the extent permitted by the
Act, the following powers and duties:
(a) Such agency may from time to time present to the Admin-
istrator recommendations based on conditions in this Industry as
they may develop which will tend to effectuate the operation of the
provisions of this Code. Such recommendations, upon approval by
Administrator as provided in Article VIII, Section 2, shall become
operative as part of this Code.
(b) Such Agency shall receive complaints of violations of this
Code, make investigations thereof, and bring to the attention of the
Administrator recommendations and information relative thereto
for such action as in his discretion the facts warrant.
(c) Members of the Industry shall file with the Code Authority
at such time and in such manner as may be prescribed, statistics
covering number of employees, wage rates, employee earnings, hours
of work, and su:h other data as may be required by the
(d) Every member of the Industry shall compile and forward
to the Code Authority a complete list of items, showing all prices,
terms and discounts to this class of trade.
(e) As soon as practicable the Code Authority shall recommend a
method of determining cost of production and shall formulate regula-
tions for its application, such method and regulations upon approval
by the Administrator as provided in Article VIII, Section 2, shall
become operative as part of this Code. In formulating such regula-
tions, the Code Authority shall take into consideration the necessity of

selling below cost to meet competition, to dispose of discontinued
lines and seconds and other pertinent factors.
(f) Standard trade customs for the Industry (including *deliv-
eries, contracts, sales on consignment, cash discount terms, quantity
price, standardization features, and sales of seconds) shall be for-
mulated by the Code Authority; subject to the approval of the Ad-
ministrator after due notice and hearing, they shall be binding upon
every member of the Industry.
(g) The Code Authority shall make a study of conditions in the
Industry to determine the feasibility of the adoption of a shorter
working week and shall, within three (3) months after the effective
date of this Code, make a report of its findings to the Administra-
tor. The Code Authority shall also submit to the Administrator
within six (6) months after the effective date of this Code, a plan
for the stabilization and regularization of employment.
(h) If it shall be represented to the Administrator by any in-
terested 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) days to afford an opportunity
for investigation of the merits of such complaint and further con-
sideration by the Code Authority pending final action, to be taken
only upon approval by the Administrator.
5. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to the Government agencies
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.


The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
(a) False Marking or Brandin.g.-The false marking or brand-
ing of any product of the Industry which has the tendency to mislead
or deceive customers or prospective customers, whether as to the
grade, quality, quantity, substance, character, nature, origin; size,
finish, or preparation of any product of the Industry, or otherwise.
(b) 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.
(c) 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
represented party, without the knowledge of such employer, prin-
cipal, or party. Conunercial bribery provisions shall not be con-
strued to prohibit free and general distribution of articles commonly
used for advertising except so far as such articles are actually used
for commercial bribery as hereinabove defined.

* (d) Interferenee with Contractual Relations.-Maliciously in-
ducing 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 contractual duties or services.
(ae) Def/amation.-The defamation of competitors by falsely im-
Spating to them dishonorable conduct, inability to perform con-
Stracts, questionable credit standing, or by other false representa-
tions or by 'the false disparagement of the grade or quality of their
(f) Imitation of Trade Mark or Trade Nanw or Style Piracy.-
The imitation of trade marks, trade names, slogans, or other marks
of identification of competitors, having a tendency and capacity to
mislead or deceive purchasers or prospective purchasers.
(g) Price Discrimination.-Any discrimination in price between
purchasers of the same class (not including discrimination in price
on account of difference in grade, quality, or quantity of the product
sold, or which makes only due allowances for difference in cost of
selling and transportation) or discrimination in price in the same or
different communities not made in good faith to meet competition.
(h) -Misrepresentation or False or Misleading Advertising.-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, poli-
cies, or services of any member of the Industry, or otherwise, having
the tendency or capacity to mislead or deceive customers or prospec-
tive customers.
(i) Requiring Chain Purchases.-To sell any product or products
on condition that the purchaser will also purchase another product
or products made or sold by the same member of the Industry; or
to sell such product or products at reduced prices or on special terms
or under special conditions to induce the buyer to purchase such
other product or products. Each member of the Industry shall sell
each different line of merchandise independently and shall not cut
the price of one with the provision that other lines be purchased
or require a purchaser to purchase one class of merchandise as a
consideration for being allowed to purchase another. This regula-
tion does not govern the distribution of bona fide samples.
(j) All sales shall be made strictly in accordance with such price
lists as provided for in Article VI, Section 3 (d).
(k) Except under regulations established in Article VI, Section
3 (e) it shall be a prohibited unfair method of competition for mem-
bers of the Industry to sell any of their products below their cost
of production except in accordance with such regulations.


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, ap-

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proval, license, rule, or regulation issued under Title I of." idA:ct,
and specifically, but without limitation, to the right of th-e txeidnt
to cancel or modify his approval of this Code or any condi~itiit it-
posed by him upon his approval thereof. .I: -
2. After due notice and hearing this Code may be ameni tiUibn
a reconunendation of the Code Authority or any interestt& Ar:
group or upon the Administrator's own notice, and any mi4*i -
tions so arrived at shall be effective when approved by the Adnito .
istrator. ::

No provision of this Code shall be so applied as to peri n f.inj- nn
olies or monopolistic practices, or to eliminate, oppress, or cis'wai -
nate against small enterprises.


Whereas the policy of the Act to increase real purchasing
will be made impossible of consummation if prices of goo 0 a i
services increase as rapidly as wages, it is recognized that priee in-.:
creases shall be delayed and that, when made, the same should, so
far as reasonably possible, be limited to actual increases in the seller's

This Code shall become effective on the seventh day after datf.... :.
Approved Code No. 200. : .:
Registry No. 299B-30.

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