NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND BONNAZ ANr HAND
AS APPROVED ON FEBRUARY 10, 1934
1. Executive Order
2. Letter of Transmittal
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Approved Code No. 276
Registry No. 231-1-06
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Approved Code No. 276
CODE OF FAIR COMPETITION
PLEATING, STITCHING, AND BONNAZ AND HAND
As Approved on February 10, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE PLEATING, STITCHING,
AND BONNAZ AND HAND EMBROIDERY 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 my approval of a Code
of Fair Competition for the Pleating, Stitching, and Bonnaz and
Hand Embroidery Industry, and hearings having been held thereon
and the Administrator having rendered his report containing an
analysis of the said Code of Fair Competition together with his
recommendations and findings with respect thereto, and the Admin-
istrator having found that the said Code of Fair Competition
complies in all respect with the pertinent provisions of Title I of
said Act and that the requirements of clauses (1) and (2) of
subsection (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to the authority vested in me by Title
I of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved, subject to the
That the Code Authority shall make a complete and detailed
study to determine whether the minimum wages provided in Article
IV of the Code are in fact tending to become maximum wages, and
the Code Authority shall report to the Administrator thereon, within
sixty (60) days after the effective date hereof, with recommenda-
tions for the continuation, elimination, or modification of any or
all of the wage rates provided in the Code. Upon the approval of the
Administrator. after such notice and hearing as he may prescribe,
the aforesaid recommendations, or any of them, shall become effective
provisions of the Code.
Provided, that the Administrator may at any time after the
effective date of the Code, cause hearings to be held for the purpose
of determining whether the wage rates provided in the Code are in
fact tending to establish maximum wages.
FRANKLIN D. ROOSEVELT.
HIooH S. JOHNSON,
THE WHITE HOUSE,
February 10, 1934.
LETTER OF TRANSMITTAL
The White House.
SIR: The proposed Code of Fair Competition for the Pleating,
Stitching and Bonnaz and Hand Embroidery Industry was sub-
mitted and a hearing thereon was held the third day of October
1933. Every person who filed a request for an appearance was fully
heard in accordance with statutory and regulatory requirements.
Testimony at the hearing showed that this Code represents a
consolidation of separate Codes which were presented by various
groups throughout the United States. The letter of transmittal
states that the Code is the joint work of eight associations, two of
which, the National Association of Pleaters, Stitchers, and Embroid-
ery Manufacturers, Inc., and the Embroidery Manufacturers Asso-
ciation, both of New York City, combined, represent approximately
75 percent of the entire industry in the United States.
Following the public hearing a succession of conferences worked
diligently to harmonize divergent viewpoints among the manufac-
turer.s of the different markets and to find ways to deal with many
grave abuses that were disrupting the industry. The prorated
meetings were worth the effort, for the final code is the agreed-upon
opinion of 95% of the industry. The dissenting 5% mostly. repre-
sents those contractors who have utilized home workers in produc-
ing their output.
Though it covers a wide range of products, the industry is pri-
marily a service industry to the wearing-apparel group, with wide
seasonal variations in productivity and violent fluctuations in styles
to meet changes in fashion. Most of the workers are highly skilled.
Even the embroidery produced on the Bonnaz machine is an individ-
ualized product, while much of the hand work is artistry of a high
Stabilization of the industry has been impossible in the past.
Vicious competition through exploited home workers and owner-
operated shops careless of health, fatigue, night, day, or Sundays
have been the source of bottomless price cutting. The problems
that arose from these fundamental conditions were the object of
great consideration by the conferences in the preparation of the
Code and the Code represents their considered answers to those
Specifically the Code covers the manufacture and production of
pleating, stitching, Bonnaz embroidery, hand embroidery, crochet-
ing, crochet beading, hand drawing (except handkerchiefs), rhine-
stone trimming, eyelets (except automatic eyelets), nailheads, bind-
ings and pipings, and all other embroidery and stitching accessories
to the wearing apparel industry; and the production of articles
using those operations.
RESUME OF CODE AS TO HOURS AND WAGES
The Code provides for a 35-hour week and a normal work day
of 7 hours. No employee may work more than 8 hours in any 24
hour period. The maximum hours per week for clerical or office
employees is set at 40; the maximum per day is 9 hours. Designers,
outside salesmen, and employees, in managerial or executive capaci-
ties, receiving more than $30.00 per week, are excepted from the
maximum hour provisions of this Code. The standard work week
for shipping clerks, porters, and watchmen is 40 hours; for a maxi-
mum period not to exceed 16 weeks in any calendar year, these em-
ployees may be permitted to work 48 hours, provided that overtime
work is compensated at not less than the regular rates for the 40-
hour week. Employees on emergency work are permitted 10 per-
cent tolerance in excess of the 40-hour week with payment of time
and one third for overtime. Foremen and forewomen who do no
productive work are permitted to work 40 hours in any one week,
with 10 percent tolerance.
The minimum wage established is 35 cents per hour. The Code
contains a long classification list of minimum wage rates by occupa-
tion. The minima for all the occupations or crafts in the industry
range from $12.25 to $42.00 per week with differentials for all
markets outside of the New York Metropolitan Area. The classi-
lication as it appears in the Code is uniform throughout the in-
dustry, and it was maintained in the Code because it represents a
long established custom in the industry and is acceptable to all
establishments without regard to their geographic location or their
industrial relation status.
The wage scales and differentials are left open for investigation
by the Code Authority. The purpose of such investigation (to be
initiated within 10 days of the Constitution of the Code Authority)
is to determine the fairness and accuracy of the differentials and
classifications, and within 60 days to make recommendations to the
Administrator with respect to changes or modifications, which if
approved by the Administrator, after notice and hearing, shall
become binding provisions of the Code.
Overtime is to be investigated by the Code Authority for the pur-
pose of determining equitable rules to govern this type of work in
the various markets. The Code provides that the Code Authority
shall make recommendations to the Administrator, which upon his
approval, after notice and hearing, shall become binding provisions
of the Code.
The problem of learners or apprentices ", also is to be studied
by the Code Authority and recommendations made thereon to the
Administrator which, upon his approval, after notice and hearing,
shall be binding provisions of the Code.
ECONOMIC EFFECTS OF THE CODE
According to the report of the Research and Planning Division,
it is estimated that there are about 5,500 workers employed in the
factories in this industry at the present time (November 1933) and
about 2,000 unemployed. Assuming that the industry has been op-
erating on the basis of a 48-hour week, the 35-hour maximum
proposed in the Code will require an additional 37 percent of the
labor force now employed to maintain the present production. In
other words, the 35-hour week will give reemployment to about 2,000
more workers than now employed, thus absorbing the estimated num-
ber of all unemployed factory workers. The same report estimates
that a 37 percent increase of the number of workers employed means-
on the basis of November 1933 wages-a 37 percent increase in the
pay roll. With the reduction of the work week and the establish-
ment of the minimum wage rates it is calculated that the present
pay roll may increase approximately 50 percent.
Home work was at first a serious difficulty, since there have been
more workers employed by this industry in their homes than in
factories, although the exact number of home workers cannot be
determined. It was estimated at the public hearing by some of the
employers who were sponsors of the Code that there are about
20,000 home workers in this industry, but upon examination of the
list of home workers, names were found to be repeated. Checking
all available sources of information, 10,000 home workers would
undoubtedly be a generous estimate of those on call at ony one
time. It is particularly important to point out that the foregoing
does not mean that 10,000 home workers are employed at any one
time but are merely "on call."
There can be no question that home work as carried on in the
embroidery industry is a source of disaster in any attempts at
organizing a stable industry. Evidence was offered at the public
hearings and in the conferences to show that hand workers were
paid as little as 50 an hour and that the highest rate paid for home.
work by even reputable manufacturers was 120 an hour, and these
rates were for embroidery requiring years of training and the
utmost skill and artistry. On work requiring less degree of skill
or in preparation of work of high skill, when work is taken to the
homes, the children of the household are employed in most of their
spare hours. The impossibility of any cost accounting control and
price cutting prevention under such conditions is self-evident. The
abolishment of home work was therefore decided by an overwhelm-
ing majority in the industry, notwithstanding great difficulties in
readjustment that will be faced by every member of the industry.
The Code provides that all home work in the industry shall be
abolished by June 1, 1934, but pending the abolishment it is pro-
vided that prices for articles done by home workers shall be deter-
mined on the basis of a minimum hourly rate of 35. To further
aid in the process of converting the home worker into a factory
worker and raising the standard of their status in the industry, it is
provided that within one month after the effective date of the code
every employer shall register with the Code Authority the name and
address of each person who performs home work; and the Code
Authority is charged with the duty of making investigation and
holding conferences to determine proper wage scales for the classes
of workers who shall be taken into the factories.
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
proceedings 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
industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) The Code as approved complies in all respects with the
pertinent provisions of said Title of said Act, including without
limitation Subsection (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative of the
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(c) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(d) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
I recommend that you approve the Code.
HUGH S. JOHNSOn,
FEBRUARY 10, 1934.
CODE OF FAIR COMPETITION FOR THE PLEATING
STITCHING, AND BONNAZ AND HAND EMBROIDERY
To effect the policies of Title I of the National Industrial Recovery
Act, the following provisions constitute a Code of Fair Competition
for the Pleating, Stitching, and Bonnaz and Hand Embroidery In-
dustry, shall be the standard of fair competition for such industry
and shall be binding upon every member thereof.
1. The term "Pleating, Stitching and Bonnaz and Hand Em-
broidery Industry ", as used herein includes the manufacturers en-
gaged m producing pleating; stitching; bonnaz embroidery; hand
embroidery; crocheting; crochet beading; hand drawing, except hand-
kerchiefs; rhinestone trimming; eyelets, except automatic eyelets;
nailheads; bindings and piping; and all other embroidery and stitch-
ing accessories to the wearing apparel industry, and the production
of articles using the above enumerated operations; and such branches
or subdivisions thereof as may from time to time be included under
the provisions of this Code.
2. The term "member of the industry includes any individual,
partnership, association, corporation, or other person engaged in the
industry, either as an employer or on his own behalf.
3. The term employee as used herein includes anyone engaged
in the industry, however compensated, except a member of the
4. The term employer as used herein means any employer en-
gaged in the industry.
5. 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 of
Title I of said Act.
1. No employee shall be permitted to work in excess of thirty-five
(35) hours in any one week or eight (8) hours in any twenty-four
(24) hour period, except as herein otherwise provided. A normal
workday shall not exceed seven (7) hours; the hours of work shall
be 8:45 A.M. to 4:45 P.M., with one (1) hour for lunch.
OURS FOR CLERICAL AND OFFICE EMPLOYEES
2. The maximum hours fixed in the foregoing section shall not
(a) Employees in clerical or office work who shall not be permitted
to work in excess of forty (40) hours in any one week or nine (9)
hours in any twenty-four (24) hour period. A normal day shall not
exceed eight (8) hours.
(b) Employees exclusively in a managerial or executive capacity
who receive more than $30.00 per week.
(c) Shipping Clerks, Porters, and Watchmen who shall not be per-
mitted to work in excess of forty (40) hours in any one week, nor
more than eight (8) hours in any twenty-four (24) hour period,
except that such employees may be permitted to work forty-eight
(48) hours per week-during a maximum of sixteen (16) weeks in
any calendar year, provided that for all such overtime work, such
employees shall be paid at not less than the hourly rate paid to them
for the regular forty (40) hour week.
(d) Employees on emergency maintenance or emergency repair
work involving breakdown or protection of life or property, who
shall not be permitted to work in excess of forty (40) hours with a
ten percent (10%) tolerance. Such excess to be paid for at the rate
of 11/V overtime.
(e) Foremen and forewomen who do no productive work who shall
be permitted to work forty (40) hours- in any one week, with 10%
S(f) Designers or outside salesmen.
3. No employee shall be permitted to work more than five (5) days
in any seven (7) day period, commencing on Monday of each week
and ending on Friday.
EMPLOYMENT BY SEVERAL EMPLOYERS
4. No employer shall knowingly engage any employee for any
time which when totaled with that already performed with another
employer, or employers, in this industry exceeds the maximum
EMPLOYER WORKING AS EMPLOYEE
5. Any employer who does the work of an employee shall be
subject to the provisions of this Code as to hours of labor.
1. No employee shall be paid less than at the rate of thirty-five
cents (35S) per hour, except as herein otherwise provided.
MINIMUM WAGE FOR CLERICAL AND OFFICE EMPLOYEES
2. No person employed in clerical or office work shall be paid less
than fourteen dollars ($14.00) per week.
PIECEWORK COMPENSATION-MTN MTM WAGES
3. This Article establishes a minimum rate of pay which shall
apply, irrespective of whether an employee is actually compensated
on a time-rate, piecework, or other basis.
MINIMUM WAGE RATES BY OCCUPATION
4. The minimum wage scale for the respective operations in the
industry shall be as follows:
For the New York Metropolitan area:
Per week Per week
Bonnaz Embroiderers------- $42.00 Machine drawers----------- $17.00
Tuckers -------------------- 42. 00 Stampers ---------------- 25. 00
Shirrers -------------------- 25.00 Stamper's assistant-- ------. 15.00
Air Tuckers----- 25.00 Spoolers 15.00
Hemstitchers ---- ---- 25. 00 Pinners--------- 15. 00
17 W 12 Operators- --- 25.00 Finishers --- ------ 15.00
Menders --- 25.00 Pleater-Pattern makers--- 37.00
Zig-zag operators- ---- 18.00 Pleaters-------- 35.00
Pin-hemmers ------- 18. 00 Plea ter-helper 22.00
Hand Rollers ------ 18.00 Machine-setter------ 22.00
Bottom-makers---- 18.00 Machine-feeder --------------15.00
German hemstitcher or ma- Rhinestone & Nailhead set-
chine operators------------ 17.00 ters --------------------- 12. 25
For all markets other than the New York Metropolitan area, the
following differentials are established for all the above classifica-
tions of $25.00 or above:
Philadelphia 20%; Boston 25%; Western Markets 30%.
The minimum wage scale on all classifications in the $22.00
Philadelphia---------------- -------------- $18 00
Boston------------------------------------- 17. 00
West---------------- ------------------ 16.00
The minimum wage scale on all $18.00 and $17.00 groups above:
Boston ------------------------------------ 14.50
West-------------------------------- ---------- 14.00
The minimum wage scale on all $15.00 group above:
Philadelphia------------------------------- $15. 00
Boston ----------------------------------- --- -- 14. 00
West ------ ------------------ --- 14.00
For all markets other than those hereinabove defined and until
such time as the Code Authority has had ample opportunity to
investigate and make recommendations to clearly define proper
market areas, such markets shall pay minimum rates of wages
equal to those rates paid in the nearest market or area.
All employees not specifically enumerated herein shall receive
a minimum wage rate of 35 per hour.
Within ten days of the constitution of the Code Authority, it
shall initiate investigations and conferences to determine the fair-
ness and accuracy of the foregoing differentials and classifications,
and within sixty days thereafter make recommendations to the
Administrator with respect to changes or modifications therein,
which upon his approval after such notice and hearing as he may
specify, shall become binding provisions of this Code.
Any agreement between employers and employees made in ac-
cordance with the National Industrial Recovery Act, may fix other
wages and hours than those set forth in this Code, provided that
no such agreement may fix maximum hours in excess of those pro-
vided in this Code, or minimum wages lower than those provided
in this Code.
None of the provisions of this Article shall be construed or applied
in such manner that the minimum wages provided herein become
maximum wages, and the duties delegated to the Code Authority
shall include a report with respect to the question of whether the
minimum wages provided herein are in fact tending to become
MAINTENANCE OF EXISTING RATES
5. In no event shall compensation for any employee above the
minimum wage rates herein provided be reduced, notwithstanding
that his hours of labor may have been reduced by this Code.
6. The Code Authority shall make investigations and hold hear-
ings to determine equitable rules for overtime in the various markets
and present recommendations to the Administrator, which upon his
approval, after such notice and hearing as he may specify, shall
become binding provisions of this Code.
7. After June 1, 1934, no employer shall have work done in the
home of a worker. By May 1, 1934, the Code Authority, after
proper investigation and conference shall recommend to the Admin-
istrator the wage scale that should be paid to the classes of workers
taken into the factories from homework, which upon his approval,
after such notice and hearing as he may specify, shall become bind-
ing provisions of this Code. Prices for articles done by home-
workers, until June 1, 1934, shall be determined on the basis of a
minimum hourly rate of 35#.
Within one month after the effective date of this Code, every em-
ployer shall register with the Code Authority the name and address
of each person who performs homework for said employer, directly
or indirectly, and no work shall be given by any employer to such
person unless said person's name is registered with the Code
8. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
9. The problem of apprentices in the Industry shall be studied by
the Code Authority and recommendations made to the Adminis-
trator, which upon his approval, after such notice and hearing as
he may specify, shall become binding provisions of this Code.
ARTICLE V-GENERAL LABOR PROVISIONS
CHILD LABOR PROVISION
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 at operations or occupations which are hazardous in nature
or dangerous to health.
PROVISIONS FROM THE ACT
2. (a) Employees shall have the right to organize and bargain
collectively, 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.
(b) 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
(c) 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.
RECLASSIFICATION OF EMPLOYEES
3. No employer shall reclassify employees or duties or occupations
performed for the purpose of defeating the provisions of the Act
or of this Code.
STANDARDS FOR SAFETY AND HEALTH
4. Every employer shall provide for the safety and health of his
employees at the place and during the hours of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six (6) months after the
effective date of this Code, and when approved by the Administrator,
shall become a part of this Code, and be binding upon every member
5. No provisions in 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 conditions, or insurance, or fire protection, or general work-
ing conditions, than are imposed by this Code.
6. All employers shall post in conspicuous places accessible to em-
ployees, copies of this Code, in whole or in part, as may be provided
by the Code Authority.
ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
1. A Code Authority is hereby constituted to cooperate with the
Administrator in the administration of this Code.
2. The Code Authority shall consist of ten (10) members to be
selected by the Industry as hereinafter provided, and of such addi-
tional members, not exceeding three (3), without vote, as the Ad-
ministrator may appoint to represent such groups or interests or
such governmental agencies as he may designate.
One of these three may be appointed by the Administrator on
recommendation of the Labor Advisory Board to represent Labor.
The industry members shall be selected as follows:
One by the Pleaters, Stitchers, and Embroiderers' Association of
Philadelphia, Pennsylvania; one by the Embroidery Manufacturers'
Association of Chicago and the Pleaters, Stitchers, and Button Manu-
facturers' Association of Chicago; one by the United Embroiders,
Stitchers, and Allied Trades Association of Cleveland, Ohio; one by
the Embroiders Association of Massachusetts, Inc.; three by the Na-
tional Association of Pleaters, Stitchers, and Embroidery Manufac-
turers, Inc., of New York; three by the Bonnaz Embroidery Asso-
ciation of New York.
3. 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,
bylaws, 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.
4. 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 lie 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, or
any sub-Code Authority.
5. 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-
min'ed 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.
6. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member 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. Nor shall any member 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 the Code, except
for his own willful misfeasance or nonfeasance.
POWERS AND DUTIES
7. The Code Authority shall have the following powers and duties
in addition to those elsewhere provided in this Code, subject to the
right of the Administrator, on review, to disapprove any action taken
by the Code Authority.
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accord-
ance with the powers herein granted, and to submit the same to the
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the Act.
(b) To obtain from members of the industry for use of the Code
Authority, for the Administrator in the administration and enforce-
ment of the Code, and for the information of the President, reports
based on periods of one, two, or four weeks, or multiples thereof,
as soon as the necessary readjustment within the industry can be
made, and to give assistance to members of the industry in improv-
ing methods, or in prescribing a uniform system of accounting and
reporting. All individual reports shall be kept confidential as to
members of the industry and only general summaries thereof may
(c) To receive complaints of violations of this Code, make in-
vestigations thereof, provide hearings thereon, and adjust such com-
plaints, and bring to the attention of the Administrator for prosecu-
tion, recommendations, and information relative to unadjusted viola-
tions; but in no event shall the Code Authority proceed to prosecute
without notice to and approval by the Administrator.
(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
and to pay such trade associations and agencies the cost thereof,
provided that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code and that such trade asso-
ciations and agencies shall at all times be subject to and comply with
the provisions hereof.
(e) To coordinate the administration of this Code with such other
codes, if any, as may be related to the industry, or any subdivision
thereof, and to delegate to any other administrative authority, with
the approval of the Administrator, such powers as will promote joint
and harmonious action upon matters of common interest.
(f) To secure an equitable and proportionate payment of the
expenses of maintaining the Code Authority and its activities from
members of the industry.
(g) To recommend to the Administrator regulations governing
the use of the N.R.A. Code Insignia and label solely by those em-
ployers who are complying with this Code.
(h) To initiate, consider, and make recommendations for the
modification or amendment of this Code.
GENERAL ADMINISTRATIVE PROVISION
8. In addition to the information required to be submitted to the
Code Authority as set forth in this Article there shall be furnished to
government agencies such statistical information as the Administra-
or may deem necessary for the purposes recited in Section 3 (a) of
the National Industrial Recovery Act.
9. Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he may prescribe,
in respect to any rule, regulation, or other course of action, issued
or taken by the Code Authority.
ARTICLE VII-TRADE PRACTICE RULES
For all purposes of the Code the acts described in this Article shall
constitute unfair practices. Any member of the industry who shall
directly, or indirectly through any officer, employee, agent, or repre-
sentative, knowingly use, employ, or permit to be employed, any of
such unfair practices shall be guilty of a violation of the Code.
RULE 1. Inaccurate Adeertising.-No member of the Industry
shall use advertising (whether printed, radio, display, or of any
other nature) or other representation which is inaccurate in any
material particular or in any way misrepresents any commodity
(including its use, trade mark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material content, or preparation)
or credit terms, values, policies, services, or the nature or form of
the business conducted.
RULE 2. "Bait" Adiertising.-No member of the industry shall
use advertising or selling methods or credit terms which have the
capacity or tendency to deceive or mislead the customer or prospective
RULE 3. False Billing.-No member of the industry shall withhold
from or insert in any quotation or invoice any statement that makes
it inaccurate in any material particular.
RULE 4. Inaccurate Labcling.-No member of the industry shall
brand or mark or pack any commodity in any manner which tends
to deceive or mislead purchasers with respect to the brand, grade,
quality, quantity, origin, size, material. content, or preparation of
RULE 5. Inaccurate References, to Competitors, etc.-No member
of the industry shall use advertising or other representation which
refers inaccurately in any material particular to any competitors or
their commodities, prices, values, credit terms, policies, or services.
RULE 6. Selling Below Cost.-No member of the industry shall
sell any commodity or service at a price below his own individual
cost. In calculating said individual cost, for purposes of this rule,
when the employer himself does the work of an employee on produc-
tion work, his labor shall be taken as that of such employee.
RULE 7. Threats of Law Suits.-No member of the industry shall
publish or circularize unjustified or unwarranted threats of legal
proceedings which tend to or have the effect of harrassing competi-
tors or intimidating their customers.
RULE 8. Secret Rebates.-No member of the industry shall secretly
offer or make any payment or allowance of a rebate, refund, com-
mission, credit, unearned discount or excess allowance, whether in
the form of money or otherwise, for the purpose of influencing a
sale, nor shall a member secretly extend to any customer any special
service or privilege not openly extended to all customers of the
RULE 9. Sell/ig on Consignmlnt.-No member of the industry
shall ship commodities on consignment.
RULE 10. Bribing Emnployees.-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 em-
ployee, 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, princi-
pal, or party. This provision 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 commercial brib-
ery, as hereinabove defined.
RULE 11. Interference with Another's Con.tracts.-No member of
the industry shall attempt to induce the breach of an existing con-
tract between a competitor and his employee or customer or source of
supply; nor shall any such member interfere with or obstruct the
performance of such contractual duties or services. Nothing in this
rule shall qualify Section 7 (a) of the National Industrial Recovery
Act or obstruct the free exercise of the rights of collective bargain-
ing therein guaranteed.
RULE 12. Repudiating One's Own Contracts.-No member of the
industry shall repudiate a contract entered into in good faith when
the purpose of such repudiation is to create for such member an
unfair price advantage.
RULE 13. Subletting.-The Code Authority will conduct a study
covering unfair competition in the industry arising from the prac-
tice known as "subletting and will make recommendations to the
Administrator with view to eliminating such unfair competition.
RULE 14. Employers Working.-Not more than one member of the
Industry or more than one employer in any shop or factory shall
be permitted to work on any machine or at any of the crafts enumer-
ated herein, provided, however, that the Code Authority, subject to
the approval of the Administrator, may make exceptions in appro-
priate cases for the purpose of effecting the Act or this Code.
RULE 15. Design and Sample Piracy.-No member shall violate
any provisions, as they shall be adopted by the Code Authority, sub-
ject to the approval of the Administrator, governing piracy of sam-
ples and designs.
RULE 16. Violence, Intimidation, or Unlawful Coercion.-No
member of the industry shall commit any of the following unfair
(a) Use of violence to person or property, intimidation, or unlaw-
ful coercion, by a member of the industry against a member of the
(b) Threat by a member of the industry to use such violence,
intimidation, or unlawul coercion.
(c) Conspiracy among members of the industry, or among mem-
bers of the trade and others, to use or to threaten to use such vio-
lence, intimidation, or unlawful coercion.
(d) Combining or cooperating by a member of the industry with
anyone who is using or threatening to use such violence, intimida-
tion, or coercion.
RrLE 17. Discount.--No member shall allow other than the recog-
nized terms of cash discount which shall be not greater than two per-
cent (2%), ten days from end of month, and net thereafter.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provis-
ions of subsection (b) of Section 10 of the National Industrial Re-
covery Act, from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of said Act
and specifically, but without limitation, to the right of the Presi-
dent to cancel or modify his approval of this Code or any condi-
tions 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 Administrator.
ARTICLE IX--MONOPOLTES, ETC.
No provision of this Code shall be so applied as to permit mon-
opolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.
ARTICLE X--PRICE INCREASES
Whereas the policy or the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
crease except such as may be required to meet individual cost should
be delayed. But when made such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.
ARTICLE XI-EFFECTIE DATE
This Code shall become effective on the second Monday after date.
Approved Code. No. -70.
Registry No. 231-1-06.
UNIVERSITY OF FLORIDA
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