NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JUNE 1, 1934
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Approved Code No. 451
.Registry No. 226-1--05
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Approved Code No. 451
CODE OF FAIR COMPETITION
CANDLEWICK BEDSPREAD INDUSTRY
As Approved on June 1, 1934
CODE OF FAIR COM PETITION FOR THE CANDLEWICK BEDSPREAD INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Candlewick Bedspread Industry, and hear-
ings 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 Inldustrial 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 that, upon application of the Candlewick Bedspread
Association, the provisions of Article IV, Section 2 of said Code,
in so far as they provide for a compensation of eight cents (8f) per
ounce of yarn used for work on the 60/60 spreads and ten cents (10)
per ounce of yarn used for work on the 64/64 spreads, be and they
are hereby stayed until July 16, 1934, on condition that in the in-
terim members of the Industry pay to home workers not less than
six and one-fourth cents (61/40) per ounce of yarn used for work
on the 60/60 spreads and not less than eight cents (8#) per ounce
of yarn used on the 64/64 spreads, pending my further order;
And provided further that the approval of Article IV, Section 2
and Article V, Section 2 is limited to such period as may be neces-
sary for a commission appointed by me upon recommendation of
the Division of Research and Planning and the Labor and Industrial
Advisory Boards to investigate the economic desirability of said
provision. It is proposed that such commission be immediately
appointed by the Administrator and directed to report with all rea-
sonable expedition and if possible by July 16, 1934. When such
commission has reported, the Administrator will hold a public hear-
ing on the reports and findings of the commission giving interested
parties reasonable notice and opportunity to be henrd. On the
basis of such report and of the facts brought out at such public
hearing, it is contemplated that these provisions and any other
provisions in the Code, may be modified so as to meet existing
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
H. O. KING,
June 1, 1934.
REPORT TO THE PRESIDENT
The White House.
Smi: This is a report on the Hearing on the Code of Fair Com-
petition for the Candlewick Bedspread Industry, conducted in Room
2062, Department of Commerce Building, Washington, D.C., Mon-
day, April 16, 1934.
In accordance with the customary procedure, every person who
filed a request for appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
The Code which is attached was presented by duly qualified and
authorized representatives of the Industry, claiming to represent
ninety-two (92%) per cent of the capacity of the Industry.
GENERAL CHARACTERISTICS OF THE INDUSTRY
This Industry is a traditional one in the homes of the mountain
people of the Blue Ridge, but has been developed commercially only
in the last twenty years. In its commercial phase this Industry is
concentrated almost entirely in Whitfield, Murray, Jordan and Bar-
tow counties in North Georgia with its center at Dalton. Outside
of the four counties there is one plant in South Carolina, one in
Tennessee and one in Alabama. There are twenty-five (25) con-
cerns in the Industry.
The products of the Industry are hand-tufted bed coverings, dra-
peries, piece goods, pillow tops, bath mats and related products.
There are from one hundred and fifty (150) to two hundred (200)
persons normally employed inside the plants of the Industry, and in
addition it is estimated that from twelve thousand (12,000) to
fifteen thousand (15,000) home workers are engaged in the tufting
of the products of the Industry. The value of the products of the
Industry was approximately $1,600,000.00 for 1933.
PROVISIONS OF THE CODE
The minimum wage for employees is twelve ($12.00) dollars per
week, except for cleaners and learners for which the minimum is
nine ($9.00) dollars per week. Learners are limited to ten per cent
(10%) of the total number of employees. With the exception of a
few classes of employees the maximum number of hours permitted
is forty (40) hours per week.
The rate of pay for the home workers is based on eight cents (8)
per ounce for twelve (12) strand yarn worked on 60/60 spreads, or
under, and ten cents (100) per ounce for twelve (12) strand yarn
worked on spreads heavier than 60/60. The rate per hour pro-
duced by the Schedule of rates is difficult to determine accurately
in view of the conditions under which the home work is done. How-
ever, evidence produced by the Manufacturers would seem to indi-
cate a yield of from fifteen cents (150) to twenty cents (20) per
hour from the above rates-which is from three to four times the
rate in effect a year ago.
The above rates are to be stayed until July 16, 1934, at which
time they become effective-subject to a review and Public Hearing
on the facts brought out at that time or shortly thereafter by a
committee established under the Code to investigate labor and com-
petitive conditions in the Industry.
The rates which will be in effect during the period to July 16th
are based on six and one-quarter cents (61/40) per ounce for 60/60
spreads and eight cents (8) per ounce for spreads heavier than 60/60.
These rates compare with the rates of four cents (4) and six cents
(60) per ounce respectively in effect before the Cdde and about two
and one-half cents (21/2) per ounce in effect a year ago.
While fifteen cents (150) to twenty cents (200) per hour appears
to be low, when compared to the minimum of thirty cents (300) per
hour established in other textile codes, it is approximately three (3)
to four (4) times the amount received in 1932 as stated. As the
work is done in the home of the worker as a part time job and is
not supervised by the manufacturer, it is believed that the rate is
justified pending the further determination of facts by the investi-
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
coinierce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under ndeqllate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
y 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 fifty thousand
(50,000) employees; and is not cla.-ified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Slb-~leition (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; iand that the applicant associa-
tion is an industrial association truly representative of the afores'id
Industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(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
For these reasons, the Code has been approved.
HuiiH S. JomrsoN,
JuvE 1, 1934.
CODE OF FAIR COMPETITION FOR THE CANDLEWICK
A I;TIC'LE I--PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a code of fair competi-
tion for the Candlewick Bedspread Industry and its provisions shall
be the standards of fair competition for such Industry and shall be
binding upon every member thereof.
SCoTION 1. The term "Candlewick Bedspread Industry" as used
h;rein, includes the converting of sheetings and yarn into hand-
tufted bed coverings, draperies, piece goods, pillow tops, bath mats
and related products, together with such punch-work tufting as is
incidental thereto, and the primary distribution of such products.
SECTION 2. The term member of the Industry" as used herein
includes, but without limitation, any individual, partnership, associa-
tion, corporation or other form of enterprise, engaged in the Industry
as above defined, either as an employer or on his or its own behalf.
SECTION 3. The term "Association" as used herein means the
Candlewick Bedspread A.-sociation of Dalton, Georgia.
S..TI-,N 4. The term "employees" as used herein means only
those employees working in the offices, warehouses, or establishments
of members of the Industry.
SECTION 5. The term employer as used herein means any mem-
ber of the Industry by whom employees are employed or compen-
SECTION 6. The term "home workers" as used herein means all
persons engagi-d in the process of making hand-tulfted bed cover-
ings and all other hand-tufted products of the Industry from yarns,
sheeting, and other materials supplied them by members of the In-
du-t ry, which pler-os work on their own time and in their own homes
or places away from the establishments of members of the Industry.
SF-,rON 7. The term hauler as used herein means a person who
distributes yarn, sheeting, and other materials from members of the
Indml-try to home workers.
SLcUTION 8. The term "cleaners as used herein, shall include only
those who perform janitorial services and clean machines, or not
as sweepers and whose labor is confined to such tasks.
SEC(TIN 9. The terms Prc(ident ", "Act ", and "Administrator "
as used horeiri shall mean, ipreletively, the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
SECTION 10. The term Code Authority as used herein means
the Candlewick B13dlsprea. l Industry Code Authority set up in Article
VI of this Cude.
No employees in this Industry shall be penritted to work in excess
of forty (40) hours per week or eight (8) hours per day with the
(a) Executives, office employees, and members of the supervisory
staff who receive $35.00 per week or more, and outside salesmen and-
(b) Office employees who receive less than $35.00 per week may
work in excess of forty (40) hours per week provided such excess
work shall not average more than forty (40) hours per week over a
five weeks' period; but in no event shall any office employee work
more than forty-eight (48) hours per week during such period.
(c) Watchmen who shall not be employed in excess of fifty-six
(56) hours per week.
(d) No employer shall knowingly permit any employee to work
for any time which, when added to the time spent at work for
another employer or employers in this industry (or otherwise), ex-
ceeds the maximum permitted herein.
SECTION 1. No employee shall be paid at less than the rate of $12.00
per week except cleaners and learners, who shall not be paid less
than at the rate of $9.00 per week. The period of learning shall
be limited to the first two months of the training. In this Industry
any time spent as a learner for another employer shall be credited
to the two months' period of learning herein prescribed. At no time
shall the number of learners employed by any niember of the Industry
be in excess of ten per cent (10%) of the total number of employees
employed by such member of the Industry.
SECTION 2. The minimum scale of compensation for all Candle-
wick work done by home workers shall be:
(a) 80 per ounce for 12 strand unfinished yarn worked on all light
weight spreads 60/60 or under, with 250 as minimum for any pat-
tern. 100 per ounce for 12 strand unfinished yarn worked on all
heavy weight spreads over 60/60, with 30 as minimum for any pat-
tern. For each additional color or tone above three, 5 shall be
added on each spread. The price per ounce shall be doubled on all
patterns where manufacturer or the pattern requires each stitch to
be pulled up and cut separately and on all French knots. 12 strand
yarn shall be the standard and any yarn with fewer strands shall be
paid for as if its weight equaled the 12 strand.
(b) For hemming spreads workers shall receive at least 1 per
(c) For laying off patterns from forms each worker shall receive
at least 20 per spread.
(d) For fringing the minimum scale of compensation shall be 25
for single knot with 50 additional for each tie or knot.1
SECTION 3. No employee shall receive for forty (40) hours of labor
less compensation than he received or would have received as of
August 1, 19:13, for not exceeding fifty-two (52) hours per week,
1See paragraphs 3 and 4 of order approving this Code.
and the wage differentials for all operations shall be equitably re-
Within 30 days after the effective date, every member of the In-
dustry shall report to the Code Authority action taken by him with
respect to adjustment of wages above the minimum.
SECTION 4. 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 em-
ployer obtains from the State authority designated by the United
states Department of Labor a certificate authorizing his employ-
ment at such wages and for such hours as shall be stated in the
certificate. Each employer shall file monthly with the Code Au-
thority a list of all such persons employed by him, showing the
wages paid to, and the maximum hours of work for such employee.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. On and after the effective date of this code, no mem-
ber of the Industry shall employ any minor under the age of 16
years, nor anyone under eighteen (18) years of age at operations
hazardous in nature or detrimental to health. The Code Authority
shall submit to the Administrator before August 1, 1934, a list of
such occupations which, upon his approval, shall be deemed hazard-
ous in nature or detrimental to health within the meaning of this
section. In any state an employer shall be deemed to have complied
with the age 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 any certificates or permits, showing that the employee
is of the required age.
SECTION 2. No member of the Industry shall distribute material
through haulers unless such haulers contract in writing not to accept
from any home workers a compensation aggregating more than 15%
of the amount received by such home worker for each finished prod-
uct and in no event to accept a compensation of more than thirty
cents (300) per spread. Such contracts shall further provide that
haulers when delivering raw materials to workers should deliver
them with a slip provided by the member of the Industry and printed
with his name thereon, specifying the number of ounces of yam
required for each pattern and the amount of compensation to be
paid for each pattern.2
SECTION 3. In compliance with Section 7 (a) of the Act it is
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union
'See pa ragrnah 4 of order approving this Code.
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing, and
(@) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
SECTION 4. All employers shall post and keep posted copies of this
Code, in conspicuous places accessible to all employees. Every mem-
ber of the Industry shall comply with all rules and regulations rela-
tive to the posting of provisions of Codes of Fair Competition, which
may from time to time be prescribed by the Administrator.
SECTION 5. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance, or fire
protection, than are imposed by this Code.
SECTION 6. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six months after the effective
date of the Code.
ARTICLE VI-AD INISTRA TION
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the
administration of this Code.
SECTION 1. The Code Authority shall consist, of five members of
the Industry to be elected in accordance with a fair method of
selection, approved by the Administrator.
SECTION 2. In addition to the membership as above provided, there
may be not more than three members without vote to be appointed
by the Administrator, who will serve without expense to the Indus-
try, except where the Industry agrees to such expense.
SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Au-
thority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the Administrator true copies of its articles of
association, bylaws, 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.
SECTION 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
SnoEION 5. Members of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
(and to participate in the selection of the members thereof) by com-
plying 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 Adminis-
trator, on the basis of volume of business and/or such other facts is
may be deemed equitable.
SECTION 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 Au-
thority, 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 willful misfeasance or non-
SECTION 7. The Code Authority shall make the proper investiga-
tion of violations and endeavor to correct them and shall refer vio-
lations to the Administrator where adjustment cannot be made
subject to the regulation of the Administrator.
SECTION 8. The Code Authority shall have the following powers
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act in accordance with the regulations of the Administrator.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration 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, members of the Industry 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 desig-
nate; nor shall anything in any code relieve any person of existing
obligations to furnish reports to Government agencies. No indi-
vidual reports shall be disclosed to any other members of the
Industry or any other party except to such governmental agencies
as may be directed by the Administrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Au-
thority 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) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining the
Code Authority and its activities.
(f) 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.
(g) To recommend to the Administrator further fair trade practice
provisions to govern members of the Industry in their relations with
each other or with other industries and to recommend to the Adminis-
trator measures for industrial planning, including stabilization of
employment and to recommend to the Administrator amendments to
or modifications of this Code after .submnitting said reoonmmendations
to the members of the Industry.
(h) To equitably adjust compensation to workers on all compli-
cated patterns either alone or with R?.pres-ntatives of Labor at their
request.; so that the net earnings on such spreads shall in no event be
less than the average net earnings which the workers shall receive
from working spreads of simple design at the 80 and 100 minimum
per ounce. And for the purpose of adjusting conpelns-ation the Code
Authority shall, subject to the disapproval of the Administrator,
have the power to revise prices per ounce upward with or without
notice to those concerned.
SECTION 9. If the Administrator shall determine that any action of
a Code Authority or any agency thereof is unfair or unjust 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 con.-ideration by such Code Au-
thority or agency pending final action, which shall not be effective
unless the Administrator approves or unless he shall fail to dis-
approve after thirty days' notice to him of intention to proceed with
such action in its original or modified form.
ARTICLE VII-TRADE PRACTICES
The following shall constitute fair trade practices for this Industry
and any violation of any fair trade practice shall constitute a
violation of the Code.
SECTION 1. Sales Below Cost.-No member of the Industry shall
sell or offer for sale any product at a price less than his own indi-
vidual cost of production, to be determined in accordance with the
system of cost accounting which shall be approved by the Adminis-
trator upon recommendation of the Code Authority, except to meet
a lower competition price or to dispose of distress merchandise,
provided that sales of distress merchandise at prices below cost shall
be reported to the Code Authority.
SECTION 2. Every employer shall have a cost accounting system
which conforms to the principles of and is at least as detailed and
complete as the standard method of cost accounting system adopted
by the Code Authority and approved by the Administrator, and
which shall be used in determining his individual cost of production.
.SECTION 3. Members of this Industry shall file with the Code
Authority a schedule of already quoted prices, terms, discounts, and
conditions of sale for products of the Industry effective on the date
of mailing said schedule to the Code Authority.
SECTION 4. Schedules of prices, terms, discounts, conditions of
sale, and revised price lists shall be open to the inspection of any
interested party, and. the Code Authority shall publish to the Indus-
try said schedules of prices, terms, discounts, and shall notify the
members of the Industry of any revision of price lists.
SECTION 5. In order to maintain quality, no member of the In-
dustry shall offer any product made on sheeting of light or sub-count
material less than 87 in. two yards 60/GO.
SECTION 6. Whenever a member of the Industry introduces a new
pattern, distinctive in motif and design, this pattern by cut'or pho-
tograph shall be submitted to the Code Authority and registered
as the exclusive design of said member of the Industry for a period
not to exceed two years. No member of the Industry shall use a
registered pattern except by permission of the owner.
SECTION 7. Cash discounts allowed by any member of the Industry
shall not exceed three per cent 10th E.O.M. except when added into
the invoice prices. All terms of sale shall be made on the basis of
F.O.B. point of origin.
SECTION 8. No member of the Industry shall secretly offer or make
any payment or allowance of any gift, rebate, commission, refund,
credit, unearned discount, or excess allowance whether in the form
of money or otherwise; nor shall any member of the Industry se-
cretly offer or extend to any purchaser any special service or privi-
lege not extended to all customers of the same class, for the purpose
of influencing a sale.
SECTION 9. False Billing.-No member of the Industry shall
knowingly withhold from or insert in a quotation or invoice any
statement that makes it inaccurate in any material particular.
SEcTION 10. Each manufacturer or distributor shall, within thirty
days after the effective date of this Code, furnish to the Code Au-
thority and its secretary a list of his or its active patterns together
with a certificate showing the weight and character of sheeting used
in each pattern; the number of ounces of unwashed yarn required to
complete said pattern into a finished spread; the rate of pay per
ounce for working said pattern; the total amount of compensation to
be received by each worker for working such pattern; the average
time required for working the same by average experienced workers,
and shall include in each certificate the name of the worker who
made the test for the distributor or manufacturer. Every manufac-"
turer or distributor who shall, after the effective date of this Code,
put out for work or introduce into the trade any new pattern shall
first furnish the Code Authority with the above information on such
proposed pattern. The Code Authority may require such other like
information as it may at any time deem necessary or suitable or
proper. Such information shall at all times be accessible to Repre-
sentatives of the Workers.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued under said Act.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on approval of the Administrator.
ARTICLE IX-MONOPOLIES, ETC.
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-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases, except such as may be required to meet individual cost,
should be delayed, but when made such incrences should, so far as
possible, be limited to actual additional increases in the seller's cost.
ARTICLE XI-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 451.
Registry No. 226-1-05.
UNIVERSITY OF FLORIDA
III 3 f1 2621 088I III I lII8 II H9 II
3 1262 08486 8099