Code of fair competition for the hat manufacturing industry


Material Information

Code of fair competition for the hat manufacturing industry as approved on February 5, 1934
Physical Description:
p.187-204 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Hat trade -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Approved Code No.259 ; Registry No.233-02"

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Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851794
oclc - 63654295
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Full Text

Approved Code No. 259 Registry No. 233-02








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For sale by the Superintendent of Documents. Washington, D.C. Price 5 centa

Approved Code No. 259

Registry No. 233--02

This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
I'oreign and Domestic Commerce.

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Approved Code No. 259



As Approved on February 5, 1934

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 Compet ition for the Hat Manufacturing Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant, to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
the provisions of Article V, Section 6, insofar as they prescribe a
waiting period between the filing with the Hat Institute, Incor-
porated (i. e. actual receipt by the Hat Institute, Incorporated) and
the effective date of revised price lists or revised terms and condi-
tions of sale be and they are hereby stayed pending my further
A dmin istrator for Indu trial Recovery.
Approval recommended:
Division Administrator.
February 5, 1934.




The White House.
SIR: The Code of Fair Competition for the Hat Industry has
been approved by the Hat Institute, Inc., and is recommended for
Executive approval. The Hat Institute is an association of manu-
facturers representing approximately 90 percent of the combined
productive capacity in the various branches of the hat industry.
These branches are: (1) .traw hats, including harvest hats; (2) silk
or opera hats; (3) fur-felt hats for men or boys, either new, second-
hand, or made-over used hats; (4) fur-felt hat bodies for men's
and women's hats; (5) wool-felt hat bodies for mlen's and women's
A proposed Code of Fair Competition for this industry was pre-
sented by the Hat Institute on July 31, 1933. Following a number
of confertin.-e.s, the Code as revised was considered on August 17,
1933, and on August 29, 1933, at public hearings, over which Dr.
Lindsay Rogers presided. At these hearings, numerous conflicting
ideas respecting Code provisions were expressed by members of the
industry and other interested parties. Most of the discussions at
the numerous conferences subsequent to the public hearings centered
about the minimum wage provisions of the Code. The manufacturers
experienced great difficulty in reconciling their divergent viewpoints
on the minimum wage provisions, but have now virtually unanimously
agreed upon the plan incorporated in the submitted Code. The Code
submitted herewith includes the following articles:
Article I sets forth definitions of certain important terms used
in the Code.
Article II prescribes the maximum hours of work for employees
in the industry and provides for certain rectrictions in the use of
productive equipment.
Article III designates a minimum wage rate of $.35 per hour, and
outlines a number of general rules respecting the application of this
Article IV embodies the general labor provisions of the Code,
including the elimination of home work in the industry.
Article V constitutes a Code Authority for the industry and out-
lines its duties and powers.
Article VI prohibits certain unfair trade practices, defined by this
section of the Code.
Article VII provides for the distribution and use of NRA labels
and requires that all hats manufactured and sold must bear such
labels issued by the Code Authority with the approval of the
Article VIII outlines the manner in which the Code may be


Article IX states that the purpose of the Code is not to permit
monopolies or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.
Article X designates the effective date.
Annex A outlines certain principles for the guidance of eiplovers
in effectuating Section 2 of Article III of the Code which provides
for the equitable adjustment of wages above the minimum.

The various branches of the industry may be grouped into three
1. The manufacture of men's straw hats from purchased braids,
and of Panama hats from purchased bodies;
2. The manufacture of felt hat bodies of wool or fur in so-called
"back shops ";
3. The manufacture or finishing of wool or fur felt hats from
felt hat bodies in so-called front shops."
In terms of value of product or of number of wage earners, the
fur-felt section represents by far the most important branch of the
industry. Almost four fifths of the total value of hat production
in 1929 was contributed by the ful-felt branch.
The fur-felt hat branch of the industry is located principally in
Connecticut, Pennsylvania, and New York. Straw Hat manufac-
turing is also concentrated to a large extent, as is evident from the
fact that in 1931 over three quarters of the production was supplied
by New York, Missouri, Massachusetts, and New Jersey.
More than 75 percent of the employees in this industry are found
in plants with 100 or more employees, while over one third of the
industry work-force finds employment in the relatively few plants
employing 1,000 workers or more. While the industry includes
many small plants, they are not responsible for the large proportion
of the workers employed. In 1931 the entire industry employed an
average work-force of 18,450 workers, of whom 14,084 were in the
fur-felt branch, as compared with 2,823 in straw-hat manufacturing,
and 1,543 in the wool-felt branch. The percentage of unskilled labor
in the hat industry is small, particularly in the fur-felt branch, where
nearly three quarters of all employees are male. In the straw-hat
section of the industry, about one half of all employees are male.
In recent. years, the hat industry has encountered a decline in the
demand for its product. To no small extent the "hatless fad is
responsible. The value of this industry's product, in 1929 was almost
$130,000,000, but by 1931 the value had decreased nearly 40 percent
to approximately $79,000,000. The industry feels that, in view of
its declining trend, it cannot increase too greatly its costs and the
price for its product without inducing a greatly lowered con-

The Code as originally submitted by the Hat Institute, Inc., pro-
vided for a guarantee of one minimum rate of $.35 per hour, below
which no employee should be paid. At the public hearing, and at


subsequent conferences, it became evident that this proposal did not
have the approval of a large group of manufacturers, many of whom
were members of the Hat Institute. To a large extent, they were
manufacturers who, because of union agreements or otherwise,
claimed to be paying wages greatly in excess of their competitors.
They maintained that if fair competition were to prevail the average
wage paid by the industry would have to be increased to a greater
extent than would be insured through the operation of a $.35 mini-
mum alone. At any event, they refused to assent to the originally
submitted Code, and created an association known as the Allied Hat
Manui facturers, Inc., to submit a second proposed Code for the indus-
try. This Code, presented during the conferences following the pub-
lic hearing, provided for occupational classifications in great detail
and provided a series of minimum wages for these classifications.
The plan of this group was finally simplified to provide for the deter-
mination of several occupational basing points for which minimum
hourly rates were designated. Representatives of labor insisted upon
detailed occupational classifications and the provision of minimum
hourly rates for these classes.
While other differences of opinion prevailed among the manufac-
turers, the major divergence resulted from the insistent demand of
one representative group for the insertion of occupational classifica-
tions in the code, and an even more strenuous demand of another rep-
resentati\ve group that but one minimum hourly rate be specified.
For many weeks, in numerous conferences, it appeared to be impos-
sible for the manufacturers to reconcile their differences, despite the
fact that literally scores of compromise plans were suggested and dis-
c(us.ed. Finally a general agreement was obtained with respect to
the plan of wage payment now embodied in the code, and which was
based upon a payroll analysis of present earnings in about fifty
manufacturing concerns.
By Article 3, Section 1, of the recommended code, it is provided
that no employee shall be paid at less than the rate of thirty-five
cents ($.35), while Section 2 of Article 3 sets forth that wages above
the thirty-five-cent ($.35) rate are to be equitably adjusted in accord-
ance with the principles outlined in Annex A of the Code. In that
Annex, certain schedules of minimum hourly rates above the min-
imum provided for least skilled employees are specified for the prin-
cipal branches of the industry. These minimum hourly rates are
not to be effective as to specified occupational groups but to specified
percentages of total number of employees. For example, wages
above those received by the least skilled employees are to be equitably
adjusted in the fur-felt industry, and the result of this adjustment is
to be that at least fifteen percent (15%) of the employees in a plant
are to receive eighty cents ($.80) per hour or above, at least an
additional twenty percent (20%) are to receive seventy cents ($.70)
an hour or above, and at least an additional twenty-five percent
(25 ) of the employees are to receive not less than fifty cents ($.50)
per hour.
The determination of the particular percentages of employees in
each wage cl;i.,ification was based upon an analysis of the earnings
prevailing in fifty (50) hat manufacturing plants during the summer
of 1933.


That this statement of principle governing wage adjliitmiiets is
considered as experimental is evidenced by the fact that Annex A
provides the Administrator with the right to cancel or modify this
provision of the code after due notice and hearing. In order that
the adequacy of the provision may be appraised by the Adminis-
trator, the code specifies that the Code Authority shall report to the
Administrator within ninety (90) days as to whether the plan as
prescribed constitutes an equitable adjustment of wages and whether
it tends to establish maximum as well as minimum wages.
Certain manufacturers in the industry have maintained their in-
ability to adjust wages to conform with the principles outlined in
Annex A. They have urged that a differential be provided below
the code minimum wage provisions as the basis for tlhe adjustment.
of their wages. These manufacturers, located largely in the Middle
West. emphasize the need for this differential by pointing out their
competitive disadvantage arising from (1) the production of cheaper
hats in certain of their plants; (2) the employment of less skilled
workers; (3) location; (4) the employment of a relatively large pro-
portion of female employees, particularly in some straw-hat plants.
There has been no submission of sufficient and adequate facts
whereby there could be an objective determination of the need for
establishing this differential, the necessary size of the different ial. or
that exact portion of the industry to which it should prevail. In
order that this problem may be further explored, the application
of Annex A of the Code is stayed for a period not to exceed 35 days
from the effective date. In addition, it is provided that the Code
Authority shall make such recommendations as it deems proper with
respect to the granting of differentials below the per'cntage Ilinima
of the Code to any manufacturer or group of manufacturer-!. Such
recommendations may be approved by the Administrator after due
notice and hearing.

By the terms of Article II of the Code, it is provided thlt no
employee in the industry engaged in productive operations shall
be permitted to work in excess of forty (40) hours in any one week.
In June 1933 the employees in the fur-felt, branch of the industry
were working an average full-time schedule of 50 hours, althowlili
actual operations during most of the months were below the hours
of a full-time week. The Division of Economic Re-earhli andl
Planning has estimated that a 40-hour week will pos.-ibly result
in the re-employment of about 2,900 workers in the fur-felt branch
of the industry and about 4,000 workers in the entire industry. In
1929, over 23,000 workers were attached to this industry, while the
largest number employed in any month of 1933 has been estimated
at about 16,000. It is possible that the 40-hour week may, therefore,
relieve a considerable extent of the unemployment problem of the
It has been maintained by labor representatives that the 40-hour
week will not lead to a significant decrease in the number of un-
employed hat workers. In support of this position, they call atten-
tion to the difference in numbers employed in 1929 as compared
with 1933. The plan suggested by the labor representatives included


a 35-hour week and single-shift operation of forming equipment.
Manufacturers called attention to their seasonal requirements which
necessitate two-shift operation, ;nld to the fact that the 35-hour week
would unduly increase costs in an industry that is experiencing a
declining trend in the demand for its product.
In order that the hours, provisions of this Code may be properly
evaluated, the Code Authority has the duty to conduct an investiga-
tion to ascertain whether the maximum work week as provided is
effectuating the purpose of the Act. The results of this investiga-
tion are to be reported to the Administrator.

It is reported that ten concerns in the industry now make wool-
felt hats, as compared with twenty-two factories in 1925. The pro-
duction of this branch of the industry has declined steadily, while im-
portations of wool-felt hats and hat bodies have increased. For the
first nine months of 1933 it is estimated that 42.8 per cent. of new
wool-felt hats were of domestic manufacture, as compared with 57.2
percent which were imported. Operating under the increased costs
which resulted from compliance with the President's Reemployment
Agreement, these mills report increased difficulty in competing with
importations. From September 1 to September 15, 1933, wool-hat
plants produced 42,000 dozen women's hat bodies as compared with
nearly 77,000 dozen for the same period in 1932.
Because of the peculiar circumstances prevailing in this section of
the industry, the Code provides that wool-felt manufacturing be
subject to but one minimum-wage requirement, that no employee
receive less than $0.35 per hour. However, the minimum wage scale
payable by this branch may be revised upon a determination of
a complaint it contemplates filing under Section 3 (e) of the
National Industrial Recovery Act.

The Deputy Administrator in his final report to me on said Code
lnvinir found as herein set forth and on the basis of all the pro-
ceeding.s in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
Iposes of Title I of the National Industrial Recovery Act, including
rmiov\'al 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 elimi-
nating 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 in.rleas.inr the consumption of industrial and agri-
cultural 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 re.-pects with the per-
tinent 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 inequlitable
restrictions~ on adlmi--i(n to Ii nllmber.-hip therein.
(d) Tie Code is not dei-ije'll,! to and will not permit monopo )lies
or monopolistic p1nctice.
(e) The Code is not des;ignlcd to and will not eliminate or oppress
small enterpri-e, and will not operate to discriminate against them.
(f) Tlhose 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.
Respect fully,
FEBRLARYI 5, 1934.



To effectuate the policies of Title I of the National Industrial
Recov\ery Act, the following provisions are established as a Code
of Fair Competition for the Hat Manufacturing Industry, and shall
be the standard of Fair Competition for such industry, and shall
be binding upon every imelrlber thereof.


1. The term "hat manufacturing industry" or the term indus-
try ", as used herein, includes the manufacture, renovation in hat
f;ict State- or in any territory, or insular possession, or other place under
the jurisdiction of the United States, by members of the industry.
A. Straw hats and other summer headwear (except caps and
millinery) including all men's and boys' summer headwear finished,
blocked and/or trimmed from imported or domestic hat bodies, and
straw hat bodies, and including harvest hats as hereinafter defined.
B. Silk or opera hats.
C. Fur-felt hats, either new, second-hand, or n-ide-over-used, for
men and boys.
D. Fur-felt hat bodies for men's and women's hats.
E. Wool-felt hats for men.
F. Wool-felt hat bodies for men's and women's hats.
The term Harvest hats" means hats made of hoods and/or
bodies imported under the provisions of paragraph 1504 (b) (5)
of the Tariff Act of 1930. with patch sweatbands not over six inches
long. and does not include Toyo bodies or any sewed braid hats.
2. The term "employee as uii.ed herein includes anyone engaged
in the industry in any capacity, receiving compensation for his
sVr'vices, irrespective of the nature or method of payment of such
coinp lin-ation and shall include apprentices.
3. The term employer as iu.isc herein includes anyone by whom
clinch employee is compensated or employed.
4. The term "member of the Industry includes anyone engaged
in the Industry as above defined either as employer or on his own
behalf, w\hethler as a manufacturer or as a contractor or subcon-
trictor as hereiiafter defined.
5. The term contractor or subcontractor means anyone en-
gaged in the Industry who manufacturers or assembles products
under contract, express or implied, whereby a customer directly or
indirectly supplies to such coiitmrictor or ,subcontractor money, and/or


credit, and/or materials, and/or any -ervices for, or in connection
with, filling orders for such customer.
6. The term Institute means the Hat Ins-titute, Inc.
7. The terms "Preident" "Act ", A and "Admiiinitrator as used
herein, shall mean, respectively, the President of the United States,
the1 National IJndlistriil Reco very Act, and the Aliniiii.-tat or of
the said Act.

1. Except as hereilnfter provided, no cimploNyee or member of the
Industry engaged in manual and/or m mechanical processes of manu-
facture, shall be permitted to work in cxess of forty (40) hours in
any one week.
The Code Authority shall make an invest igti(on to certain
whether the maximum work week herein provided is offectuating the
purposes of the Act, and shall report thereon to the Administrator.
2. Office employees, repair shop crews, engineers,. electricia n, fire-
men, stock clerks, box packers and shippers, watching and outside
crews, scitb women, charwomen, and others similarly employed, shall
not. be permitted to work in excess of forty (40) hours in any one
week, except that during the spring and fall seasons such employees
shall be permitted to work not iore than an additional eight (8)
hours in any one week, and shall be paid their regular rate of com-
pensation for any time worked in excess of forty (40) hours in any
one week.
The Code Authority shall report to the Administr'ator before
March 1, 1934, with recommendations in respect to the hours of labor
of the excepted employees described herein, and the Administrator
may approve any such recommendations. Upon his approval they
shall have full force and effect as provisions hereof.
3. The maximum hours fixed in the foregoing !ec'tioi,. shall not
apply to supervisory employees, including foremen, receiving thirty-
five dollars ($3..00) per week or more, nor to outside salesmen.
4. The foregoing provisions for maximum hours of labor mean
the maximum hours of labor per week for each employee in the In-
dustry so that under no circumstances shall such an employee be
knowingly employed or permitted to work for one or more employers
in the Industry in excess of the aggregate prescribed number of hours
in a single week.
5. There shall be only one shift of labor per day in the finishing
department in the manufacture of felt hats and in the sewing, press-
ing, and blocking departments in the manufacture of straw, Panama,
and other body hats (except harvest hats).


1. No employee shall be paid at less than the rate of thirty-five
cents ($0.35) per hour.
2. Wages above the minimum provided herein shall be equitably
adjusted in accordance with the principles set forth in Annex A of
this Code; provided, however, that such principles shall not be con-
strued or applied so as to set maximum as well as minimum wages.


8. This Article establishes a minnmum rate of pay regardless of
whether an employee is compensated on a time rate, piecework, or
other basis.
4. Female employees engaged in productive operations and per-
forming siiubtantially the same quality and quantity of work as male
employees 5. Employees shall not be required or compelled to wait unreason-
able lengths of time for the assignment or continuation of work
unless adequate compensation is paid for such waiting periods; and
it shall be prima facie evidence of a violation of this provision that
employees are required to wait for assignment or continuation of
work in excess of one continuous hour. The compensation for such
waiting period, in excess of one continuous hour, shall be based upon
the average earnings of tuch employees computed upon the most
recent pay-roll records.
6. All employees shall be paid directly by their employers and the
pay-roll records shall contain the name or identification number of,
and the wages paid to, each employee.
1. No person under sixteen (16) years of age shall be employed in
the IndustIry, nor anyone under eighteen (18) years of age at opera-
tions dan rgerous to life or limb. The Code Authority shall submit to
the Administrator before March 1, 1934, a list of such occupations.
In any state, any employer shall be deemed to have complied with
this provision if he shall have on file a certificate or permit duly
issued by the authority in such state, empowered to issue employment
or age certificates or permits, showing that the employee is of the
required age.
2. Employees shall have the right to organize and bargain collec-
lively 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 repre-entatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a condition of employment, to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
4. Employers shall comply with the maximum hours of labor, min-
imum rates of pay, and other conditions of employment approved or
prescrib!-d by the President.
5. Within each state, this Code shall not supersede any laws of
suchi state, imposing more stringent requirements on employers regut-
lating the age of employees, wages, hours of work, or health, fire,
or general working conditions than under this Code.
6. Employers shall not recla-mify employees, or duties of occupa-
tions of employees, so as to defeat the purposes of the Act.
7. No merchandise shall be manufactured by "home work" as
herein after defined.
The term home work as used herein, is hereby defined to mean
the performance of any manufacturing operation, whether by ma-
chine or hand, in any home, tenement "house, or basement.


ARTICLE V-ADM N Is''n \'in
Further to effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Adinirjistrator in the admin-
istration of this Code.
1. Organization and Constitution of the Code A.lthritv.
(a) The Code Authority shall consist of twelve (12) individuals
to be appointed by the Board of Directors of the Iiintitute, and of
one (1) individual to represent nonmembers of the Institute if and
when elected by such nonmembers by a fair iiethld, of selection
approved by the Administrator.
The Administrator may appoint two (2) additli;ial members,
without vote, to represent such groups or interests or .-uIl givern-
mental agencies as he may designate.
Two (2) members, without vote, may be appointed by the Admin-
istrator on recommendation of the Labor Advi-ory Board to repre-
sent Labor.
(b) The industrial association participating in the selection or
activities of the Code Authority shall:
(1) Impose no inequitable restriction., 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, or-
ganization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
(c) The Code Authority may appoint its own officers and em-
ployees and, except as herein provided, prescribe, subject to the ap-
proval of the Administrator, rules, regulations. and bylaws for its
procedure and the conduct, of its business and affairs.
(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 provide 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 re-
spects comply with the provisions of the Act, may require an appro-
priate modification in the method of selection of the Code Authority,
or any sub-Code Authority.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act, subject to the right of the
Administrator on review to approve or disapprove any action taken
by the Code Authority:
(a) Review all questions or disputes arising under this Code;
(b) Insure execution of the provisions of this Code and provide
for the compliance of the Industry with the provisions of the Act;
(c) Shall receive complaints of violations of this Code, make in-
vestigations thereof, provide hearings thereon, adjust such com-
plaints, and refer unadjusted violations to the Adminitrator with a
report and recommendations for appropriate action;
(d) Use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code, and that such trade


associations and agencies shall at all times be subject to and comply
with the provisions hereof;
(e) Investigate the importation of competitive articles into the
United States on such term or under such conditions as to render
ineffective or seriously endanger the maintenance of the Code, and
act as the agency for making complaint in respect thereof to the
President on behalf of the Industry; and
(f) To secure from members of the Industry equitable and pro-
portionate payment of the reasonable expenses of maintaining the
Code Authority and its activities;
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those members of the Industry who
have assented to and are complying with this Code;
(h) Submit to the Administrator from time to time such pro-
posed amendments to the Code as, in its judgment will have the
effect of improving the Code or improving the results secured there-
under, and any of such proposed amendments, when approved by
the President, shall have force and effect as provisions of the Code.
Every proposed amendment shall be so submitted only after a
canvass of the opinion of the Industry by the Code Authority.
(i) To make recommendations for the limitation and supervision
of handicapped persons employed below a minimum wage.
3. For the purpose of aiding the Code Authority in judging as to
the observance of the Code, in gauging the extent to which the objec-
tives of the Act are being attained, and considering any necessary
amendments or additions to the Code, each member of the Industry
shall furnish to the Institute properly certified reports of such char-
acter and in such form as the Code Authority may prescribe, with the
approval of the Administrator, including-
(a) Number of employees;
(b) Wages paid employees;
(c) Hours of work performed by each employee;
(d) Stocks on hand, production, and unfilled orders, together with
such other statistics and information as may be required from time
to time.
4. For the purpose of assuring to the Code Authority the advice
and suggestions of the major branches of the Industry, the Institute
shall provide for the selection in each of the major branches of the
Industry of an Advisory Committee. Such Advisory Committees
shall m like such recommendations to the Code Authority as they may
deeni niee!- ary and advisable with reference to their particular
branches of the Industry. They may also submit recommendations
affecting the whole Industry or propose amendments to the Code.
5. The Code Authority may cause the Secretary of the Hat Insti-
tute, Incorporated, or such other confidential agency as the Code
Authority may determine, with the approval of the Administrator,
to make such investigations of members of the Industry as it may
deem advi.sable in order to determine whether or not any member of
the Industry is violating any provision of this Code. All informa-
tion so received shall be held secret and confidential between the
Secretary of the Hat Institute, Incorporated, and/or confidential
agency and the reporting member.


6. Each member of the Industry shall, within ten (10) days after
the effective date of the Code, file with the In.titute a list showing
the prices for all its products, discounts therefrom and terms of
sale, and from and after the expiration of such ten (10) day period,
each member of the Industry shall at all tinme maintain on file with
the Institute a list showing the price, for all its products, together
with discounts and terms, and shall not make any change therein
except as provided for in this Section. Each such list hall state
the date upon which it shall become effective, which date, in the
event of a price increase, shall be not more than five (5) days after
the (late of the filing of such list as aforesaid, and, in the event of
a price decrease, shall be not less than five (5) days after ,uch date
of tiling; provided, however, that the first list filed by any member
of the Industry as above provided, shall take effect on the date
of filing thereof. None of the prices, discounts, or sterns, shown
in any list filed by any member of the Industry as herein provided
shall be changed except by the filing by such member of the Industry
with the Institute of a new list, which shall become effective on the
effective date therein specified, which date, in the event of a price
increase, shall be not more than five (5) days after the date of the
filing of such list as aforesaid, and, in the event of a price decrease,
shall be not less than five (5) days after such date of filing. The
prices, discounts, and terms in effect prior to the filing of such new
list shall continue in effect until those set forth in such new list shall
become effective as above provided. All such lists shall be available
for inspection by any member of the Industry or other interested
party at all reasonable hours.
7. The Code Authority may rect nnoend to the Administrator
discounts and terms of sale, which, upon approval by the Adminis-
trator shall become effective provisions of this Code.
S. 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 exer-
cising 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.
9. All information received by the Code Authority by virtue of
the operation of any provision of this Code shall be deemed con-
fidential and shall not be published, or otherwise di,.seminated in the
Industry, but shall be available to the Administrator.
10. No action of the Code Authority on any matter shall be effec-
tive unless the same shall have been passed by the affirmative vote
of not less than two thirds (%2) of the entire voting members thereof.
11. 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 Administrator.



The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
1. False Mairking 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 the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industry, or otherwise.
2. Misrepresentation or False or Mi.slcadin g 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.
3. Commercial Bribery.-No member of the Industry shall give,
permit to be given, or directly offer to give, anything of value for the
purpose of influencing or rewarding the action of any employee,
agent, or representative or another in relation to the business of the
employer of such employee, the principal of such agent or the repre-
sentative 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 adver-
tising, except so far as such articles are actually used for commercial
bribery as hereinabove defined.
4. Interference with Contractual Rclanfonrs.-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. Discrm;inaton.-There shall be no discrimination in price
between customers of the same class by paying or allowing rebates,
refunds, commissions, or unearned discounts, or by giving prizes or
by extending to certain customers special prices, terms, services, or
privileges not extended to all customers of the same class under like
terms and conditions, except that, in his discretion, a member of the
Industry may grant any customer an allowance for advertising pur-
poses of any sum which shall not exceed five percent (5%) of the net
amount of the purchases of such customer from such member of the
Industry before discounts in any year, provided that no such allow-
ance shall be made by any member of the Industry unless the cus-
tomer shall contribute to such advertising at least an equal amount
in such year, provided that bills rendered for such allowance are
accompanied by proof of the advertising expenditure.
6. Giving of Prizes, Premiumns, or Gifts.-The offering or giving
of prizes, premiums, or gifts in connection with the sale of products,
or as an inducement thereto, by any scheme which involves lottery,
misrepresentation, or fraud.
7. Defamation.-The defamation of competitors by falsely imput-
ing to them dishonorable conduct, inability to perform contracts,


questionable credit standing, or by other false represeinationq, or by
the false disparagement of the grade or quality of their goods.
8. Threats of Litigation.-The publishing or circularizing of
threats of suits for infringement of patents or trailc-ni; irks 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. Substttutions.-Using or substituting any material superior in
quality to that specified in the contract of sale, or using or sub-
stituting any method of manufacture not in substantial accordance
with the contract with the purchaser for the purpose of se,'uring an
unfair competitive advantage.
11. Invoices.-Invoicing products with dates other than dIates of
shipments in order to evade published prices and terms filed in ac-
cordance with the provisions of this Code.
12. Charges and Collection.-.-Failing to charge for any product
delivered to a customer in accordance with the prices on filh with
the Institute at the dates of sale.
13. Cost Accountirng.-No member of the Industry shall sell any
commodity at a price below his own individual cost. However, any
member may meet the price competition of anyone whose costs under
this Code provision are lower. Cost shall be determined in accord-
ance with the principles enumerated in any standard cost system
formulated by the Code Authority with the approval of the Admin-
istrator. Distress merchandise, surplus stock, seconds, and samples
shall be excepted from this provision. Subje.'t to the approval of
the Administrator, the Code Authority shall adopt rules and regu-
lations governing the disposal of such merchli;ndisc below co t.
14. Consignments.-Subject to the extent necessary to carry out
arrangements existing on the effective date of the Code, which ar-
rangements shall be reported to the Code Authority, delivering
products on consignment or selling with the privilege of return.
15. Made-Oi-re-Used Hats.-Selling or offering for sale, old, worn,
used or discarded hats which have been cleaned and/or fitted with
ribbons, sweatbands, or linings, unless and until there is stamped
upon the exposed surface of the sweatbands of such hats the words
" Made-over-used hat" in metallic letters at least one quarter of an
inch high or clearly embossed letters as prescribed by the Code
16. Pa.ymtent of Wages.-Employees shall be paid in cash or by
check at least every two weeks all wages accruing to within eight (8)
days of the date of payment, and no such check shall knowingly
be issued which may not be promptly cashed in full by the payee.
An employee voluntarily leaving employment shall be paid in full
not later than the following regular pay-day, and an employee dis-
charged from employment shall be paid in full not later than the
business day next, succeeding the date of such discharge.
Provided, however, that upon proper showing of undue hardship
the Code Authority may grant an exception from any of the above


provisions, subject to the right of an employer to appeal to the
17. Infralg,ements.-Using, imitating or simulating any exclusive
name, trade-mark or brand owned by any other member of the In-
dustry for the purpose of securing an unfair competitive advantage.

All hats ina mlfact ured or distributed subject to the provisions of
this Code shall bear an N.R.A. label to symbolize to purchasers of
said hats the conditions under which they were manufactured. Un-
der the power vested in it by the Executive Order of October 14,
1933, and under grant of the necessary authority by the Administra-
tor, the Code Authority shall have the exclusive right in this In-
dustry to issue and furnish said labels to the members thereof.
There shall be one type of label for new hats and one type for
made-over-used hats. Each label shall bear a registration number
especially assigned to each employer by the Code Authority and re-
main attached to such hat when sold to the retail distributor. Any
and all members of the industry may apply to the Code Authority
for a permit to use such N.R.A. label, which permit to use the label
shall be granted to them, but only if and so long as they comply
with this Code. Such labels may be attached to hats manufactured
and/or delivered prior to the effective date, if manufactured by a
member of the industry who is complying with the Code at the
time they are so attached.
The Code Authority, subject to approval by the Administrator,
shall establish rules and regulations and appropriate machinery for
the issuance of labels, and the inspection, examination and supervi-
sion of the practices of employers using such labels in observing the
provisions of this Code for the purpose of ascertaining the right of
said employer to the continued use of said labels; of protecting
purchasers in relying on said labels; to assure to each individual
employer that the symbolism of said label will be maintained by
virtue of compliance with the practices herein contained by all other
employers using said labels.
The charge made for such labels by the Code Authority shall at
all times be subject to supervision and orders of the Administrator
and shall be not more than an amount necessary to cover the actual
reasonable cost thereof, including actual printing, distribution, and
administration and supervision of the use thereof as hereinabove
set forth.
With respect to the harvest hat industry, the Code Authority
shall make recommendations concerning the application of this pro-
vision so that the Administrator, in his discretion, may make this
section effective with respect to said Industry.


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 Re-
covery Act, from time to time to cancel or modify any order, ap-


proval, license, rule, or regulation, iutied 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 im-
Iposed 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.


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.


This Code shall become effective on the second Monday after
Approved Code No. 259.
Registry No. 233-02.

llIIII :I 1 1111ll111111111111 lllll j I fI111111111llllol l
3 1262 08486 8008


In accordance with Section 2 of Article III of the Code, the following prin-
ciples shall guide employers in the aljustment of wages above the minimum
provided in the Code:
A. In the production of fur-felt hat bodies and fur-felt hats, at least fifteen
per cent (1l3) of the total number of employees shall receive not less than
eighty cents ((0..So) per hour; at least an additional twenty percent (20%)
of the total number of employees shall receive not less than seventy cents
($0.70) per hour; and at least an additional twenty-five percent (25%) of the
total number of vmplh.yees shall receive not less than fifty cents ($0.50) per
B. In the production of straw hats and other summer headwear as defined
in Article I, Section 1, paragraph A, of this Code (other than harvest hats)
at least fifteen percent (15%) of the total number of employees shall receive
not less than eighty cents ($0.80) per hour; at least an additional twenty per-
cent (20%) of the total number of employees shall receive not less than
seventy cents ($0.70) per hour; and at least an additional twenty-five percent
(23'r) of the total number of employees shall receive not less than forty
cents ($0.40) per hour.
C. In the production of wool-felt hat bodies and wool-felt hats the minimum
rate of thirty-five cents ($0.35) per hour as provided in Article III, Section 1,
of this Code. shall apply provided that the Code Authority shall make such
recommendations as it dems proper and necessary to cover higher paid
workers on a percentage basis similar to that set forth in the preceding sub-
divisions d'si-enated "A" and "B" of this section, depending upon the out-
come of complaint filed under.section 3 (e) of the Industrial Recovery Act.
The Administrator may approve such recommendations after due notice and
hearing, and upon his approval thereof they shall become effective provisions
of this Code.
D. Prnvidl. that in computing the above percentages, there shall be ex-
cluded office employees, salesmen, partners, executives, officers, and foremen.
Irovid'ed, however, that the application of the above shall be stayed for a
period not to exceed thirty-five (35) days after the effective date hereof; and
Provided, further, that the Code Authority shall make such recommendations
as it deems proper with respect to the granting of differentials to any manu-
facturer or group of manufacturers below the percentage minima herein set
forth. The Administrator may approve such differentials after due notice
and hearinig. and upon his approval they shall become effective provisions'of
this Code.
The Code Authority shall re'lprt to the Administrator within one hundred
twenty (120) days as to whether the operation of the above principles con-
stitutes an equitable adjustment and whether it tends to establish maximum
as well as minimum wages, and the Administrator after due notice and hear-
ings, may cancel or modify the provisions of this Annex.