Approved Code No. 352
Registry No. 234-1-01
kL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 21, 1934
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Approved Code No. 352
CODE OF FAIR COMPETITION
FLAG MANUFACTURING INDUSTRY
As Approved on March 21, 1934
CODE OF FAIR COMPETITION FOR THE FLAG MANUFACTURING
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 Flag 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 di-
rected to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise, do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and purposes
of said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved, subject to the following
That application of provisions of Article X of said Code be stayed
for a period of thirty (30) days from the effective date of this Code
and further until such time as there shall be a hearing to determine
rules and regulations of the homework provisions contained in Codes
of Fair Competition and the determination by the Administrator
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. D. WHITESIDE,
March 21, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: The Public Hearing on the Code of Fair Competition for the
Flag Manufacturing Industry as proposed by the National Associa-
tion of Flag Manufacturers was conducted in the Willard Hotel,
Washington, D.C., November 17, 1933.
Every person who requested an appearance was fairly heard in
accordance with the regulations of the National Recovery Admin-
istration. The Code has the approval of the Labor, Industrial and
Consumers' Advisory Boards of the National Recovery Administra-
tion and of the Legal Division. The Chairman of the Code Com-
mittee, upon authorization of the Committee has also given his
approval to the final draft of the Code on behalf of the Industry.
The Industry as defined in the Code includes the manufacture of
flags, banners, patriotic decorations and bunting decorations. The
Submitting Association represents 90% of the Industry by number of
concerns and approximately 90% by volume of business. In 1928
the aggregate number of employees was five hundred and in 1933
three hundred. However, the aggregate annual sales volume dropped
from four million dollars in 1928 to one million two hundred thousand
dollars in 1933. The decrease in the employment amounted to
40% but the decrease in annual sales amounted to 70%.
RESUME OF THE CODE
Article I gives the purposes of the Code.
Article II sets forth certain definitions.
Article III contains the maximum hour provisions of the Code.
Article IV establishes the minimum wage for employees in the
Article V sets forth the General Labor Provisions.
Article VI provides the general organization of the Code Authority
and defines its powers and duties.
Article VII sets forth Trade Practices which are unfair and which
shall be eliminated.
Article VIII provides for the modification of the Code in accordance
with Section 10 (b) of the National Industrial Recovery Act.
Article IX states that this Code shall not permit monopolies.
Article X provides for the elimination of home work after June 1,
Article XI is the statement of policy on price increases.
Article XII sets the effective date fifteen days after its approval.
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 purposes
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 provide 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 ade-
quate governmental sanctions and supervision, by eliminating unfair
competitive practice, by promoting the fullest possible utilization of
the present production 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 unem-
ployment, by improving standards of labor, and by otherwise
(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 association is
an industrial association truly representative of the aforesaid industry;
and that the said association imposes no inequitable restrictions on
admission to membership therein.
(d) The Code is not designed to and will not permit monopolies or
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons the Code has been approved.
HUGH S. JOHNSON,
MARCH 21, 1934.
CODE OF FAIR COMPETITION FOR THE FLAG MANUFAC-
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 Flag Manufacturing Industry, and shall be
the standard of fair competition for this industry, and shall be binding
on every member thereof.
1. The term "industry" as used herein includes the manufacture
of flags, banners, patriotic decorations, and bunting decorations, and
such other products as may from time to time be included under the
provisions of this Code.
2. The term "employee" as used herein includes anyone engaged
in any phase of the Industry in any capacity, irrespective of the
method of compensation, or his interest otherwise in said Industry.
3. The term "employer" as used herein includes anyone by whom
any such employee is compensated or employed.
4. The term "member of the Industry" as used herein includes
anyone engaged in the Industry as above defined either as an employer
or on his own behalf.
5. 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.
1. Except as hereinafter provided, no employee shall be permitted
to work in excess of forty (40) hours in any one week, however,
employees may be permitted to work overtime not to exceed eighty
(80) hours in any one calendar year. In no case, however, shall an
employee be permitted to work more than forty-eight (48) hours in
any one week. All overtime shall be compensated for at a rate of not
less than time and a third (1%) the normal wage rate.
2. (a) Electricians, engineers, Firemen, watchmen, and shipping
crews shall be permitted to work not more than forty-four (44)
hours in any one week.
(b) Executives, supervisors and artists who receive thirty-five
($35.00) dollars or more per week repair shop crews on emergency
work, and outside salesmen shall be exempt from Section 1 of this
3. No employee shall be permitted to work for a total number of
hours in excess of the number of hours prescribed for such week
and day, whether employed by one or more employers.
1. No employee shall be paid at less than the rate of thirteen
dollars ($13.00) per week of forty (40) hours except as follows:
(a) Learners may be paid at not less than the rate of eighty per-
cent (80%) of the minimum wage provided for herein for a period
not to exceed eight (8) weeks, provided that in no case shall the
total number of learners employed exceed eight percent (8%) of the
total number of employees, however, any employer shall be entitled
to employ at least one learner.
(b) A person whose earning capacity is limited because of age, or
physical or mental handicap, may be employed on light work at a
wage below the minimum established by this Code if the employer
obtains from the State Authority 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.
Such authority shall be guided by the instructions of the United
States Department of Labor in issuing certificates to such persons.
Each employer shall file monthly with the Code Authority a list of
all such persons employed by him, showing the wages paid to, and the
maximum hours of work for such employee.
2. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time rate, piece work, or
other basis. This provision shall not be construed to mean that em-
ployees employed on a part-time basis shall receive the same weekly
compensation as full-time employees. No employer shall reduce the
weekly compensation of any employee receiving more than the mini-
mum herein provided for below that in effect as of July 1, 1933, for any
given class of work, whether such work was paid for on a monthly,
weekly, daily, hourly, or piece rate basis, notwithstanding that the
hours of such employment may have been reduced by the provisions
of this Code; the Code Authority, following an investigation, may
recommend such adjustments of rates as may be necessary to eliminate
ARTICLE V-GENERAL LABOR PROVISIONS
1. No person under sixteen (16) years of age shall be employed in
the Industry, nor anyone under eighteen (18) years of age at opera-
tions, or occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator before May 1,
1934, a list of such occupations. 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 em-
powered 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-
tively 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 collec-
tive 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
4. Employers shall comply with the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment, approved or
prescribed by the President.
5. Within each State this Code shall not supersede any laws of such
State imposing more stringent requirements on employers 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 occupations
performed by employees or engage in any other subterfuge so as to
defeat the purposes of the Act.
7. Each member of the industry shall be furnished, by the Code
Authority, with official copies of the provisions of this Code relating
to hours of labor, rates of pay, and other conditions of employment.
Such official copies of such provisions shall contain directions for
filing complaints of violations of such provisions, and shall be kept
conspicuously posted at all times by such members of the industry in
each shop, establishment, or separate unit, to the extent necessary
to make them freely accessible to all members including home workers.
Whenever any modifications of, or exemption or exception from this
Code permits any person to pay lower wages, or work his employees
longer hours, or establish traditions of employment less favorable to
his employees than those prescribed by the provisions contained in
such official copy of the provisions of this Code, the Code Authority,
on the request of such person, shall furnish him with certified copies
of such modifications, exemption or exception in sufficient number for
posting along side of such official copies of Code Provisions. No
member of the industry shall display or furnish any incorrect copies
of such provisions, directions, modifications, exemptions or exceptions.
8. No provisions in this Article shall modify established practices
for privileges as to vacation period, leaves of absence, or temporary
absence from work heretofore guaranteed to office employees.
ARTICLE VI-ORGANIZATION, POWERS, AND DUTIES OF THE CODE
ORGANIZATION AND CONSTITUTION
1. There shall forthwith be constituted a Code Authority consisting
(a) Five (5) representatives of the Industry, or such other number
as may be approved from time to time by the Administrator, to be
selected as hereinafter provided.
(b) Such additional members, without vote, not to exceed three
(3), as the Administrator may appoint to represent such groups or
interests or governmental agencies as he may deem proper and for
such periods as he may designate.
2. The representatives of the Industry shall be selected by the
National Association of Flag Manufacturers in a manner to be
approved by the Administrator.
3. 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 association, by-laws,
regulations, and any amendments when made thereto, together 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 prescribe such hearings
as he may deem proper; and thereafter if he shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
5. Members of the Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority 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 determined
by the Code Authority, subject to review by the Administrator, on
the basis of volume of business and/or such other factors as may be
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 this Code, except for his own
wilful misfeasance or nonfeasance.
7. If the Administrator shall determine that any action of a Code
Authority or any agency thereof may be unfair or junjust or con-
trary 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 Author-
ity 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.
8. The Code Authority shall have the following further powers and
(a) To insure the execution of the provisions of this Code and to
provide, subject to rules and regulations established by the Admin-
istrator, for the compliance of the Industry with the provisions of the
Act; provided, however, that this shall not be construed to deprive
duly authorized governmental agencies of their power to enforce the
provisions of this Code or of the Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code, and
in addition to information required to be submitted to any Code
Authority all or any of the persons subject to this Code shall furnish
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act, to such Federal
and State agencies as the Administrator may designate; nor shall
anything in any code relieve any person of existing obligations to
furnish reports to government agencies. No individual reports shall
be disclosed to any other member of the Industry or any other party
except to such governmental agencies as may be directed by the
(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
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 make recommendations to the Administrator for the coor-
dination of the administration of this Code with such other codes, if
any, as may be related to the Industry.
(f) To provide ways and means for financing the operation of said
Code Authority and to determine an equitable method of apportioning
in the Industry the cost of administering this Code. Money raised
in any manner shall not exceed in amount such reasonable cost.
(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) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions to
govern members of the Industry in their relations with each other or
with other industries, measures for industrial planning, and stabiliza-
tion of employment; and including modifications of this Code which
shall become effective as part hereof upon approval by the Adminis-
trator after such notice and hearing as he may specify.
(i) To cause to be formulated a standard method of finding and/or
estimating cost capable of use by all members of the Industry. After
such method has been formulated, full details concerning it shall be
made available to all members. Thereafter all members shall deter-
mine and/or estimate costs in accordance with the principles of such
ARTICLE VII-TRADE PRACTICES
1. No member of the Industry shall brand or mark any com-
modity in any manner which tends to mislead or deceive the purchas-
ers with respect to the grade, quality, origin, size, material, con-
tent or preparation or such commodity in conformity with the stand-
ards as established by the Code Authority when approved by the
2. No member of the Industry shall make, cause, or knowingly
permit to be made or published any false, materially inaccurate, or
deceptive statements by way of advertisement or otherwise, whether
concerning the grade, quality, quantity, substance, character, nature,
origin, size, finish, or preparation of any product of the Industry, or
the credit terms, values, policies, or services of any member of the
Industry, or otherwise, having the tendency or capacity to mislead,
or deceive customers or prospective customers.
3. No member of the Industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose of influencing
or rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. Commercial bribery
provisions are not to be construed to prohibit free and general dis-
tribution of articles commonly used for advertising, except so far as
such articles are actually used for commercial bribery as hereinabove
4. No member of the Industry shall attempt to induce the breach
of an existing contract between a competitor and his customer, or
source of supplies; nor shall any such member interfere with or object
to the performance of such contractual duties or services.
5. No member of the Industry shall secretly make or offer to make
any payments or allowance of a rebate, refund, commission 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 offer or extend to any customer any special service or privilege
not extended to all customers of the same class.
6. No member of the Industry shall offer or give prizes, premiums,
or gifts in connection with the sale of products, or as an inducement
thereto, by any scheme which involves lottery, misrepresentation, or
7. No member of the Industry shall use advertising or other repre-
sentation which refers inaccurately in any material particular to any
competitors or their commodities, prices, values, credit terms, policies,
8. No member of the Industry shall publish or circularize unjusti-
fied or unwarranted threats of legal proceedings which have or tend to
have the effect of harassing competitors or intimidating any of their
9. No member of the Industry shall use any unfair means to secure
information regarding the manner in which a competitor conducts his
10. (a) No member of the Industry shall sell any article subject to
the provisions of this Code below his individual cost; however, any
member of the Industry may meet the price of any competing member
of the Industry whose cost under this provision is lower. Cost for the
purpose of this provision shall be determined in accordance with
Section 8 (i) of Article VI of this Code. (b) Any member of the
Industry may sell dropped lines or distress merchandise below such
cost provided the facts of such contemplated sale are reported to the
Code Authority at least, twenty-four (24) hours prior to such sale.
(c) When the Code Authority determines that an emergency exists
in this Industry and that the cause thereof is destructive price-cutting
such as to render ineffective or seriously endanger the maintenance
of the provisions of this Code, it may cause to be determined the
lowest reasonable cost of the products of this Industry, such deter-
mination to be subject to such notice and hearing as the Administrator
may require. The Administrator may approve, disapprove, or mod-
ify the determination. Thereafter, during the period of the emer-
gency, it shall be an unfair trade practice for any member of the
Industry to sell or offer to sell any products of the Industry for which
the lowest reasonable cost has been determined at such prices or upon
such terms or conditions of sale that the buyer will pay less therefore
than the lowest reasonable cost of such products. When it appears
that conditions have changed, the Code Authority, upon its own
initiative or upon the request of any interested party, shall cause the
determination to be reviewed.
11. No member of the Industry shall ship goods on consignment
except under circumstances to be authorized by the Code Authority,
subject to the approval of the Administrator.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President in accordance with the provisions
of sub-section (b) of Section 10 of the National Industrial Recovery
Act, from time to time to cancel or modify any order, approval,
license, rule or regulation issued under Title I of said Act and specifi-
cally, but without limitation to the right of the President to cancel or
modify his approval of this Code or any conditions imposed by him
upon his approval thereof.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to be based upon application to the Administrator and
such notice of hearing as he shall specify, and to become effective
upon approval by the President.
No provisions of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.
ARTICLE X 1-HOME WORK
1. No home work shall be permitted by employers after June 1,
1934. After April 1, 1934, no employer shall employ more than sixty
percent (60%) of the number of home workers employed by him as
of September 1, 1933.
2. Until June 1, 1934, no work shall be permitted in any home by
employers unless and until evidence has been presented to the Code
Authority, as agent for the Administrator, that all State, municipal,
and other laws and regulations relating to home work have been
complied with and unless the names and addresses of such home
workers and their employers shall have been filed with the Code
3. The Code Authority shall file with the Administrator a list of
the names and addresses of all home workers employed in the Industry
and shall indicate by whom all such home workers are employed.
4. No home worker shall be engaged at the same time by more than
5. All home workers shall be paid on the same piece-rate basis as
factory employees engaged in similar work.
I See paragraph 3 of order approving this Code.
ARTICLE XI-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and services
increase as rapidly as wages, it is recognized that price increases will
be delayed. But when made such increases should, so far as possible,
be limited to actual increases in the seller's costs.
ARTICLE XII-EFFECTIVE DATE
This Code shall become effective on and after the fifteenth (15th)
day after its approval.
Approved Code No. 352.
Registry No. 234-1-01.
UNIVERSITY OF FLORIDA
3 1262 08486 8040