UNIVERSITY OF FLORIDA
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3 1262 08486 7844
Registry No. 299-43
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S- .. .:. .
Approved Code No. 312
CODE OF FAIR COMPETITION
NARROW FABRICS INDUSTRY
As Approved on February 27, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE NARROW FABRICS
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 Narrow Fabrics 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 Order 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 Com-
petition be and it is hereby approved, provided however that Article
V, Section 8 shall be modified to read as follows:
"8. The having work done or labor performed on any product
of the Industry in the home of a worker shall be prohibited."
provided, however, that the Code Authority shall make a study at
once of the extent of homework in this Industry for the Adminis-
trator, and that pending such study Section 8 of Article V, as so
modified, is stayed until the Administrator shall order that it become
HUGH S. JOHNSON,
Admin istrator for Industrial Recovery.
A. D. WHITESIDE,
February 27, 1934.
REPORT TO THE PRESIDENT
The IWhite House.
SIR: This is a report on the Hearing on the Code of Fair Compe-
tition for the Narrow Fabrics Industry, held in accordance with the
provisions of the National Industrial Recovery Act in the South
Lounge of the Hotel Ambassador on January 12, 1934. The Code,
which is attached, was presented by duly qualified and authorized
representatives of the Industry, complying with statutory require-
ments, said to represent 75 per cent by volume of the Industry.
In accordance with the customary procedure every person who had
filed a request for an appearance was freely heard in public, and,
all statutory and regulatory requirements were complied with.
The Industry comprises about 133-35 concerns, having an invest-
ment in 1929 of approximately $38,000,000. In 1933' the Ind;ustry
provided employment for 12,000 workers which is the same number
employed during 1929. Aggregate annual sales have fallen from
$45,900.000 in 1929 to about $30.000,000 in 1933.
PROVISIONS OF THE CODE
The Code provides for a minimum wage of 321/' per hour in the
North and 301 per hour in the South. It is stated in the Code that
this minimum wage applies only to the lowest paid class of labor in
the Industry. The Code provides that employees shall not receive for
a work week of 40 hours less compensation than they received for the
longer work week prevailing prior to July 1, 1933. Pay schedules
of employees receiving more than the minimum wages are to be
readjusted equitably, and the Code Authority is designated the
agency to see that this provision is carried out. Average weekly
earnings in the Industry will be increased 5.2 per cent by the applica-
tion of this Code and total pay-rolls will be increnspd approximately
22 per cent.
Hours of work for office employees are limited to 40 hours per
week averaged over a period of three months, provided that no
employee works more than 48 hours in any one week. No other
employee is permitted to work more than 40 hours per week and 8
hours per day with the following exceptions: maintenance employees
are permitted to work ten per cent in excess of the maximum hours;
employees in the supervisory capacity receiving $30.00 or more per
week are not limited as to hours; watchmen are permitted to work
not more than 56 hours per week; employees on emergency repair
work are excepted, but are to be paid time and one-third for all over
S time work. Operations are limited to two shifts of 40 hours each
: per week. The effect of this Code will be to increase employment
a;- i approximately 21 per cent.
S There are no highly restrictive provisions in the Code itself. The
: sale of merchandise below cost is prohibited when and if a uniform
system of cost accounting is approved by the Administrator. It is
contemplated that supplemental Codes of Fair Trade Practice will
be submitted for the different divisions of this Industry.
'EBRUABR 27, 1934.
HUGH S. JOHNSON,
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive 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) 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 subsec-
tion (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
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is rot designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, this Code of Fair Competition for the Narrow
Fabrics Industry has been approved.
CODE OF FAIR COMPETITION FOR THE NARROW
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 Narrow Fabrics Industry, and shall be the
standard of fair competition for such Industry and shall be binding
upon every member thereof.
1. The term Industry as used herein includes the manufacture
of the following, including any related processes (except the spinning
of yarn and preparatory processes thereto), and such branches and
subdivisions thereof as may from time to time be included under the
provisions of this Code, viz:
(a) All Woven Elastic Fabrics, except fabrics 16" or more in
width having elastic in the filling only.
(b) All Braided Elastic Fabrics.
(c) All Braided Non-Elastic Fabrics.
(d) Covered Rubber Thread, Hose Supporters for the Garment
Trade, Cutting and Tipping of Shoe Laces and Corset Laces, and
other related branches whose application may be approved by the
Code Authority and the Administrator.
It is provided, however, that the term Industry shall not
include millinery and dress trimmings made of unusual synthetic
yarns and not of wool, silk, cotton, or rayon (or similar yarn made
2. The term member of the Industry as used herein includes
anyone engaged in the Industry, as above defined, either as an
employer or on his own behalf, and includes anyone who furnishes
or contracts for labor as a part of a larger or further operation in
the process of manufacturing narrow fabrics.
3. The term employee as used herein includes anyone engaged
in the Industry in any capacity receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such
4. The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
5. The term productive machinery as used herein -means weav-
ing and braiding machines.
6. The terms President "Act ", and "Administrator as used
herein, shall mean, respectively, the President of the United States,
Title I of the National Industrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
7. The term South shall be defined to mean the States of North
Carolina. South Carolina, Florida, Georgia, Alabama, Tennessee,
I.. .Mississippi, Louisiana, Arkansas, Oklahoma, Texas, Arizona, New
Mexico, Maryland, Kentucky, and Virginia.
8. The term North shall mean the rest of the United States.
9 2. The term "learner" as used herein includes unskilled workers
writh less than six weeks experience in the Industry.
.10. The term outside workers as used herein includes workers
engaged principally outside the factory and not in actual factory
AnciL I II-Houxs
1. No office employee shall work or be permitted to work in ex-
cess of forty (40) hours per week averaged over a period of three (3)
months, or forty-eight (48) hours in any one (1) week.
2. No other employee shall work or be permitted to work in ex-
cess of forty (40) hours in any one (1) week or eight (8) hours in
any twenty-four (24) hour period, excepting that:
(a) Repair shop crews, shipping and outside workers, engineers,
electricians, and firemen shall be permitted to work 10 per cent in
excess of the maximum hours specified above.
(b) Executives and employees in a managerial or supervisory ca-
pacity who receive at the rate of $30.00 or more per week, and out-
side salesmen, are excepted from the maximum hour provisions of
this Article III. All such employees shall be listed with the agent
of the Code Authority.
(c) Watchmen shall be permitted to work not more than fifty-six
(56) hours in any one week.
3. The maximum hours fixed in the foregoing Section shall not
.apply to any employee on emergency maintenance or emergency re-
pair work involving- extraordinary break-downs or protection of
life or property, but in any such special case one and one-third (11i)
times the normal rate shall be paid for the hours worked in excess of
the maximum hours herein provided.
At the end of each calendar month every employer shall report to
the agent of the Code Authority, hereinafter provided for, in such
detail as may be required, the number of man-hours worked in that
month in cases of emergency, and the ratio which said emergency
man-hours bear to the total number of man-hours of labor during
4. Members of the Industry shall not operate productive machinery
as hereinbefore defined for more than two shifts of forty (40) hours
each per week.
5. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours prescribed for each
week and day, whether employed by one or more employers.
AnRTici I V-WAGES
1. No employee shall be paid at less than the rate of 32Y24 per
hour when employed in the North and 300 per hour when employed
in the South. This minimum wage applies only to the lowest classi-
fications of occupations; skilled workers shall be paid upon a higher
wage scale as provided in Section 3 of this Article.
'- ".." .
2. This Article establishes a minimum rate of pay regardless of
whether an employee is compensated on a time-rate, piecework, or
3. No employee shall receive for a full week's work less compen-
sation for the hours of labor permitted under this Code than he
received or would have received for a full week's work of longer
hours prior to July 1, 1933, and the same rule shall be applied equi-
tably to any employee working less than a full week. Pay scE.gul~
of employees above the minimum shall be readjusted in any case and
in such manner as shall be equitable. It shall be the duty of the
Code Authority to effectuate the operation of this provision.
4. A person whose earning capacity is limited because of age or
physical or mental handicap inay be employed on light work at a
wage below the minimuni established by this Code if the employer
obtains from the State Authority 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.
5. Learners shall not be paid less than 80 per cent of the minimum
rate of pay and no employer shall include within the category of
learners more than 5 per cent of the total number of employees in
ARTICLE V-GENERAL LABOR PROVISIONS
1. No person under 16 years of age shall be employed in the In-
dustry. 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 em-
ployment 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
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
5. Within each State members of the Industry shall comply with
any laws of such State imposing more stringent requirements on
employers, regulating 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 use any other subterfuge so as to
defeat the purposes of the Act.
7. Each employer shall post in conspicuous places full copies of
8. The doing of work or the performance of labor on any product
of the Industry in the home of a worker shall be prohibited.
9. Until adoption by members of this Industry of further provi-
Ssions of this Code that may prove necessary in order to prevent any
i ipreper speeding up of the work (Stretchouts) no manufacturing
Employee in the Industry shall be required to do any work in excess
Sof the practice as to the class of work of such employee prevailing
B 'July 1, 1933, or prior to the Share-The-Work movement unless
such increase is submitted to and approved by the Code Authority
created by this Code and the Administrator.
10. If any employer of labor in the Narrow Fabrics Industry is
also an employer of labor in another Industry, the provisions of this
Code shall apply to and affect only that part of his business which
is included in the Narrow Fabrics Industry.
ARTICLE VI-ADM INISTRATION
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to administer this Code.
1. Organization and constitution of the Code Authority:
(a) The Code Authority shall consist of 8 Mill Executives selected
by the members of the Industry as set forth in subsection (b) below
and not over two additional members when approved by the Code
Authority and the Administrator to represent related branches of
this Industry, and such additional members without vote and without
expense to the Industry, not to exceed three, as the Administrator in
his discretion may appoint to represent such groups or interests or
such governmental agencies as he may designate. The Code Author-
ity may delegate to subcommittee such of its powers and duties as it
may deem necessary.
(b) Each of the Divisional groups in this Industry, as provided
in subsections (a), (b), and (c) of Section 1, Article II, shall elect
to the Code Authority representatives of their own choosing by
methods approved by the Administrator as follows:
(a) Woven Elastic Division-Four Mill Executives.
(b) Braided Elastic Division-Two Mill' Executives.
c) Braided Non-Elastic Division-Two Mill Executives.
The members of the Code Authority shall hold office for one year
or until their successors are elected and qualified. Any vacancy in
the membership of the Code Authority shall be filled by majority
vote of the remaining members from the Division in which the
vacancy occurs. In the case of failure to elect a member or mem-
bers from any Division or Divisions the Administrator may appoint
a member or members to act until such time as election is effected.
(c) 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 Associa-
tion, by-laws, 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.
I See paragraph 2 of order approving tis Code.
(d) In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with the
provisions of the Act, the Administrator may prescribe such hear-
ings 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. 1' us:s
(e) The Code Authority shall investigate the importation bf com-
petitive articles into the United States which render ineffective or
seriously endanger the maintenance of this Code and act as the
agency for making complaint to the President on behalf of the
Narrow Fabrics Industry.
(f) 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 expense of its admini-tration. The
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority, subject to review by the Adminis-
trator, on such basis as may be deemed equitable.
(g) Members of the Industry shall file with the agent of the Code
Authority at such times and in such manner as may be prescribed,
statistics covering number of employees, wage rates, employee earn-
ings, hours of work, production, shipments, stocks, prices, and such
other data pertinent to the effectuation of the purposes of this Code,
as may be required or approved by the Administrator.
(h) All data filed in accordance with the provisions of this Code
shall be confidential and shall not be revealed to anyone other than
an authorized Governmental agency; except that when in compiled
form or coded to prevent injury to any member, it may be revealed
to the Code Authority or to the authorized agent of any approved
Industry group; provided, however, that any information or sta-
tistics that the Code Authority may deem to be essential for the
proper performance of any of its functions shall be made available
to the Code Authority by the agent receiving such reports.
2. To the extent permitted by the Act, the Code Authority shall
have the following powers and duties:
(a) To cooperate with the Administrator in making investigations
as to the functioning and observance of any provisions of this Code,
at its own instance or on complaint by any person, and report the
same to the Administrator.
(b) To coordinate and supervise the administration of the Code
for the Industry, and to designate a disinterested agent to receive
and compile all reports required under this Code, and to effectuate
the policy of the National Industrial Recovery Act with respect to
the Industry. The Code Authority shall set up its own rules of
3. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to Government agencies
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.
4. Any interested party shall have the right of appeal to the
Administrator under such rules and regulations as he shall prescribe
S with respect to any decision, rule, regulation, order or finding made
by the Code Authority.
5. If the Administrator shall determine that any action of a Code
Authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the Administrator may require that such action
be suspended to afford an opportunity for investigation of the merits
of such action and further consideration by such Code Authority or
agency pending final action which shall not be effective unless the
Administrator approves or unless he shall fail to disapprove after
thirty days' notice to him of intention to proceed with such action
in its original or modified form.
ARTICLE VII-TRADE PRACTICES
1. No member of the Industry shall sell or exchange any product
of the Industry at a price or upon such terms or conditions that will
result in the customer paying for the goods received less than the
cost to the seller, as may be determined as herein provided, except to
meet the competition of any member of the Industry whose price is
not less than his own cost; provided, however, that dropped lines,
seconds or inventories which must be converted into cash to meet
emergency needs may be disposed of in such manner and on such
terms and conditions as the Code Authority may approve, subject to
appeal to the Administrator, and as are necessary to move such prod-
uct into the buyers' hands. This provision shall not become effective
until a uniform and standard system of cost accounting shall be
approved by the Code Authority and the Administrator with what-
ever variations may be deemed advisable for the several Divisions.
Following such approval, every member of the Industry shall use a
system of accounting which conforms to the principles of and is at
least as detailed as such system. The Code Authority, with the
approval of the Administrator, shall determine the cost factors to
be included in such system.
2. The following unfair trade practices are prohibited:
(a) False Mar-king or Branding.-The false marking or brand-
ing of any product of the Industry which has a tendency to mislead
or deceive customers or prospective customers, whether as to grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industry or otherwise.
(b) Commercial Bribery.-The giving, permitting to be given,
or directly offering to give anything of value for the purpose of
influencing or rewarding the action of any employee, agent, or rep-
resentatives 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.
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 bribery as herein-
(c) 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
purchasers of special services or privileges not extended to all pur-
chasers on like terms and conditions.
;:.. : .- ../ ,.. .. '
(d) False Invoicing.-Withholding from, or inserting in a,~is: -:.
voice, words or figures which make or tend to make such Wtv iwe "
a false record, wholly or in part, of the transaction represented4o0n
the face thereof.
ARTICLE VIII-MODTFICATION ..
1. This Code and all the provisions thereof are.expressly""atde
subject to the right of the President, in accordance with the proi- "
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 oftsaid
Act and specifically, but without limitation, to the right of the Presi-
dent 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 Actj miay be
modified on the basis of experience or changes in circumstances, such
modifications to be based upon application to the Administrator .and
such notice and hearing as he shall specify, and to become effective qn
approval of the Administrator.
3. This Code is intended to be a Basic Code and to cover the
entire Industry. It is understood, however, that trade associations,
groups of manufacturers or trade groups representing a substantial
part of any specific subdivision of this Industry may formulate Sup-
plementary Codes of Fair Competition, not inconsistent with the
provisions of this Basic Code, defining specifically the subdivision
and covering such regulations as are considered advisable by them.
Such Codes when approved by the Code Authority and the Admiins-
trator shall have the same force and effect as this Basic Code.
ARTICLE IX-MONOPOLIES, ETC.
No provisions of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE X-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
Approved Code No. 312.
Registry No. 299-43.