Code of fair competition for the bias tape industry


Material Information

Code of fair competition for the bias tape industry as approved on May 23, 1934
Physical Description:
p. 343-353 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Sewing -- Equipment and supplies -- Law and legislation -- United States   ( lcsh )
Notions (Merchandise) -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
"Approved Code No.441 ; Registry No.251-09"

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851180
oclc - 63654355
System ID:

Full Text

Appovd od N. 41 egsty o.25-0








r,- wile by the Superintendent of Documents, Washington, D.C. - Price 5 cents

Approved Code No. 441

Registry No. 251-09

This publication is for sale by the Superintendent of Documents, Government
Printing (]fii,.,. Wna:hin-ton. D.C., and by district offices of the Bureau of
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Approved Code No. 441



As Approved on May 23, 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 Competition for the Bias Tape Industry, and hearings having
been duly held thereon and the annexed report on said Code, con-
taining 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
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.
Adnitistrafor for Industrial Recovery.
Approval recommended:
Division Admini ;trator.
May 23, 1934.




The White House.
SIR: This is a report on the Hearing on the Code of Fair Com-
petition for the Bias Tape Industry, held in the Pan American
Room of the Mayflower Hotel, Washington D.C., on December 13,
1933. The Code, which is attached, was presented by duly qualified
and authorized representatives of the Industry, complying with
statutory requirements, said to represent all concerns in the Industry.
In accordance with the customary procedure every person who
had filed a request for an appearance was freely heard in public,
and all statutory and regulatory requirements were complied with.

The Industry comprises nineteen (19) concerns having an in-
vestment in 1933 of $1,363,000.00. In 19)29 the Industry employed
746 workers. This figure has declined to about 610 employees in
1933. Aggregate annual sales declined from 6,912,000 dozen in
1929 to 3.244,000 dozen in 1933.

The Code provides for a minimum wage of 321. per hour except
that learners during a thirty day apprenticeship shall be paid not
less than 80 per cent of the minimum wage. Learners are limited
to five (5) per cent of the total number of employees. The Code
further provides that it shall be the policy of the members of the
Industry not to reduce compensation in excess of minimum wages
set forth in the Code, notwithsanding that the hours worked in
s~uch employment may be reduced.
Hours of work for clerical and office employees are limited to 40
hours a week averaged over a period of three months. Hours of
work for all other employees are limited to 40 hours a week and
eight hours a day with the following exceptions:
Maintenance employees are permitted to work 44 hours per week
providing that time and one-third is paid for all hours in excess
of 40 hours per week;
Watchmen are permitted to work 42 hours per week averaged
over a period of two weeks provided they do not work more than
48 and 36 hours in alternate weeks;
Employees engaged in a supervisory capacity and receiving $35.00
or more pri" w .ek, and outside salesmen are not limited as to hours;
Emiployee.- engaged in emergency maintenance or repair work are
excepted from the maximum hour provisions but shall be paid time
and one-third for all hours in excess of 40 hours per week.
Representation on the Code Authority is provided for all mem-
bers of the Industry. The Code provides for an open price associa-


tion in the Industry but permits prices to be revised without a
waiting period. Sales below the individual cost to the members of
the Industry are prohibited, however, sales may be made below cost
to meet the lower price of a competitor or to sell d;mmaged goods or
discontinued lines of merchandise. The Code also provides for the
establishment of a standard system of cost finding to be used by all
members of the Industry after approval by the Administrator.


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 de signed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
the removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof, and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative act ion among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanction and supervision, by eliminat-
ing 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 increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating indust ry.
(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 limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restrictions
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, this Code of Fair Competition for the Bias
Tape Industry, has been approved.
MAY 23, 1934.



To effectuate the policies of Title 1 of the National Industrial
Recovery Act this Code is established as a Code of Fair Competi-
tion for the Bias Tape Ind(ustry and its provisions shall be stand-
ards of fair competition for such Industry and shall be binding
upon every member thereof.


1. The term Bias Tape Industry or Industry as used herein
includes the manufacture and sale by the manufacturer of iias tape
for household use and siuch related branches or subdivisions as may
from time to time be included under the provisions of this Code by
the Presideint of the United States, after such notice and hearing as
he may prescribe.
2. The term member of the Industry includes, but without limi-
tation, any individual, partnership, cition, corporation, or other
form of enterprise engaged in the Industry, either as an employer
or on his or its own behalf.
3. The term "employee" as used herein includes any and all
per-ons engaged in the Industry, however compensated, except a
member of the Indus:try.
4. The term employer as used herein includes any person, firm,
corporation or other form of enterprise engaged in the Industry,
who or which engages in his or its business employees as defined
5. The terni "learner" as used herein, includes any and all em-
ployees who have had less than thirty (30) days' experience or
employment in the Ind:lu.try.
6. The term "Act ", "President" and "Administrator" as used
herein mean respectively Title I of the National Industrial Recovery
Act, the Preoident of the United States and the Administrator for
Industrial Recovery.

1. No employee, except, as herein otherwise provided, shall be per-
mitted to work in excess of forty (40) hours in any one week or eight
(8) hours in any twenty-four (24) hour period.
2. No person employed in clerical or office work shall be permitted
to work in excess of forty (40) hours in any one wveek averaged over
a period of five (5) weeks, nor more than twelve (12) hours in any
twenty-four (24) hour period. A normal work day shall not exceed
eight (8) hours.


3. Repair shop crews, engineers, electricians, firemen, shipping
crews, outside workers and/or cleaners shall not be permitted to
work in excess of forty-four (44) hours per w,.ek, provided, however,
that all employees included in this Section shall receive at least one
and one-third times their normal rate of pay for all hours worked
in excess of forty (40) hours per week.
4. Watchmen may be employed in pairs workiinfr thirty-six (36)
and forty-eight (48) hours on alternate iwek:-. or an average of
forty-two (42) hours per week over a two-weeks period.
5. The provisions of this Article shall not apply to p:-r.-onI em-
ployed in a managerial or executive capacity who receive thirty-five
dollars ($35.00) or more per week. nor to conimeriial traveling sales-
men nor to employees engaged in emergency maintenance or emer-
gency repair work, provided, however, that all such employees en-
gaged in emergency maintenance or emergency repair work shall
receive at least one and one-third times their norlml rate of pay for
all hours worked in excess of forty (40) hours per weck. and that
such overtime work shall be reported to the Code Authority.
6. No employee shall be permitted to wN-rk for a total number of
hours in excess of the number of hours prescribed herein whether
he be employed by one or more employers.


1. No employee, except as hereinafter provided, shall be paid at a
rate of less than thirty-two and one-half (321/2) tceii per hour.
2. No learner shall be paid at a rate of less than eighty per cent
(80%) of the minimum established herein and the total number of
such persons so employed by a member of the Indi-try shall not. in
any case. exceed one in number or five per cent (5'%) of the total
number of such member's employees, whichever is the higher. The
period of learning shall be limited to thirty (30) days whether
served under one or more employers.
3. Female employees performing substantially the .'-ane work as
male employees shall receive the same rates of pay as male employees.
4. A person whose earning capacity is limited bee;u-e 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 s.uch person's em-
ployment at such wages and for such hours as halll be stated in
the certificate. Each employer shall file monthly with the Code
Authority a list of all cuch persons employed by him, showing the
wages paid to, and the maximum hours of work for such employee.
5. This article establishes a minimum rate of pay which shall
apply irrespective of whether an employee is actually compensated
on a time rate, piece work performance or other basis.
6. It is the policy of the members of this industry to refrain from
reducing the compensation for employment which compensation
was, prior to June 16, 1933, in excess of the minimum wages herein
set forth, notwithstanding that the hours of work in such employ-
ment may be reduced; and, unless since such date such adjustments
have been made all members of this industry shall endeavor to in-


crease the pay of all employees in excess of the minimum wage, as
herein set forth, by an equitable adjustment of all pay schedules.
1. No person under sixteen (16) years of age shall be employed in
the industry. No person under eighteen (18) years of age shall be
employed at operations or occupations which are hazardous in nature
or dangerous to health. The Code Authority shall submit to the
Administrator within sixty (60) days after the effective date of
this Code a list of such operations or occupations. In any State
an employer shall be deemed to have complied with this provision as
to aae if he shall have on file a certificate or permit duly signed by
the Authority in such State empowered to issue employment or age
certificate or permits showing that the employee is of the required
2. In compliance with Section 7 (a) of the Act it is provided :
(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-organiization 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 or
to refrain from joining, organizing, or assisting a labor organiza-
tion of his choosing; and
(c) 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.
3. No employer shall reclassify employees or duties of occupa-
tions performed or engage in any other subterfuge for the purpose
of dE-feating the purposes or provisions of the Act or of this Code.
4. 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 Au-
thority to the Administrator within six months after the effective
date of this Code.
5. No provision in this Code shall supersede any State or Federal
law which imposes on employers more stringent requirements as to
age of employee., wages, hours of work, or as to safety, health, sani-
tary or general working conditions, than are imposed by this Code.
6. All employers shall post and keep posted complete copies of the
wage and hour and general labor provisions of this Code in con-
spicuous places accessible to employees, and shall comply with all
rules and regulations relative to the posting of provisions of Codes
of Fair Competition which may be prescribed by the Administrator
from time to time.

1. A Code Authority is hereby established to cooperate with the
Administrator in the administration of this Code and shall consist


of six (6) members or such other number as may be approved from
time to time by the Administrator. Five (5) members of the Code
Authority shall be chosen through a fair method of selection ap-
proved by the Administrator, by the members of the Bias Tape
Institute; and one member may be chosen through a fair method of
selection approved by the Administrator, by those members of the
Industry who are not also members of the Bias Tape Institute. The
Administrator in his discretion may appoint not more than three (3)
additional members without vote and without compensation from
the Industry, to serve for such period of time and to represent. the
Administrator or such group or groups as he may designate.
2. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
impose no inequitable restrictions on membership and shall 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 activi-
ties as the Administrator may deem necessary to effectuate the pur-
poses of the Act.
3. 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
4. It being found necessary, in order to support the Administra-
tion of this Code and to maintain the standards of fair competition
established by this Code and to effectuate the policy of the Act, the
Code Authority is authorized, subject to the approval of the
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code;
(b) To submit to the Administrator for his approval, subject
to such notice and opportunity to be heard as he may deem necessary,
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and secure equitable
contribution as above set forth by all such members of the Industry,
and to that end, if necessary, to institute legal proceedings therefore
in its own name.
Only members of the Industry complying with the Code and con-
tributing to the expenses of its administration as provided above
shall be entitled to participate in the selection of the members of the
Code Authority or to receive the benefit of its voluntary activities or
to make use of any emblem or insignia of the National Recovery


5. If the Aldmiistrator shall determine that any action of the
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by the Code
Authority or agency pending final action which shall not be effective
unless the Admini.st4ator aplpioves or unless he shall fail to dis-
approve after thirty (30) days' notice to him of intention to proceed
with such natiun in its original or modified form.
6. The Code Authority shall have the following further powers
and duties:
(a) To administer the provisioI of this Code, provide for the
compliance of the Industry with the provi-ions of the Act under
lsuch rules and regulations as may be prescribed by the Adminis-
trator; and to propose and submit to the Administrator its recom-
mendations for a mendments and/or modifications of this Code which
shall become effective as a part of this Code when approved by the
Administrator after such notice and hearing as he may specify.
(b) To adopt. by-laws and rules and regulations for its procedure
and for the administ ration 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
to provide for submission by members of the Industry of such infor-
mnation and reports as the Administrator may deem necessary for
the purposes recited in Section 3 (a) of the Act, which information
and reports shall be submitted by members to such administrative
and/or government agencies as the Administrator may designate;
provided that nothing in this Code. shall relieve any member of the
Industry of any existing obligations to furnish reports to any gov-
ernmential agency. No individual reports shall be disclosed to any
other member o? 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 Authority
of its duties or responsibility 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 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 cooperate with the Administrator in regulating the use
of any N.R.A. insignia, which is used solely by those members of
the Industry who have assented to, and are complying with, this
(g) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the Industry, in their relation
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tion of employment.
(h) To conprate with the Administrator in making investigations
as to the functioning and observance of any of the provisions of this
Code, at its own instance or on complaint by any person affected,
and to report same to the Administrator.


(i) To provide for and adopt standards for the products of this
Industry which, when approved by the Administrator, shall be
observed by all members of the Industry.

1. The Code Authority shall proceed to formulate a method of
cost finding which shall contain the principal elements of cost
and shall be capable of uniform application within the Inluit ry.
Within thirty (30) days after such cost finding method shall have
been approved by the Administrator each member of the Iindustry
shall adopt the same as a basis for determining his own individual
2. No member of the Industry sT'.hll sell any of the products of
this Industry below his own individual cost except to meet bona fide
competition in any specific instance, provided, however, that nothing
contained herein shall be construed to prevent the sale of damaged
goods, job lots, and di:-continued lines below the cost of production
after such merchanildie is clearly invoiced as such and a complete
record thereof is kept by the seller, which shall be "promptly for-
warded to the Code Authority upon request.
3. Each member of the Industry shall file with the Code Authority
within fifteen (15) days after the effective date of this Code his
schedule of prices, discounts, and terms of sale to all classes of trade
for the products of this Industry, except damaged goods, job lots
and discontinued lines. No iie.mber of the Industry shall sell his
products at a price lower or at discounts greater or on terms more
favorable than those set forth in his schedule currently filed with
the Code Authority.
(a) Any member of the Industry may revise his price lists or
terms of sale at any time by filing with the Code Authority such
revised price lists or terms of sale which shall become effective im-
mediately upon filing. All such price lists and/or terms of sale shall
be available to all members of the Industry or to any other interested
party who may apply for same.
(b) In the event any member of the Indullitry contemplates a
change in his prices, no information relative thereto shall be given
to customers or salesmen, directly or indirectly, prior to the date
when such change becomes effective.


1. No member of the Industry shall willfully publish advertising
(whether printed, radio, display or of any other nature), which is
misleading or inaccurate in any material particular, nor shall any
member in any way misrepresent any goods (including but without
limitation, its use, trade mark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material content or preparation)
or credit terms, values, policies, services, of the nature or form of
the business conducted.
2. No member of the Industry shall willfully brand or mark or
pack any goods in any manner which is intended to or does deceive
or mislead purchasers with respect to the brand, grade, quality,


quantity, origin, size, substance, character, nature, finish, material
content or preparation of such goods.
3. No member of the Industry shall secretly offer or make any
payment or allowance of a rebate, refund, commission, credit, un-
earned discount or excess allowance, whether in the form of money
or otherwise, nor shall a member of the Industry secretly offer or
extend to any customer special service or privilege not extended to
all customers of the same class, for the purpose of influencing a sale.
4. No member of the Industry shall pre-date or post-date any order
or contract with the intent or having the effect of giving to either
the buyer or seller any advantage or benefit which would not accrue
if such order or contract were correctly dated.
5. No member of the Industry shall accept make and hold"
orders for bias tape for home use except as contracts under which
the buyer shall accept delivery of the full quantity specified within
the contract period.
6. No member of the Industry shall willfully induce or attempt
to induce the breach of any contract between a competitor and his
customer or willfully interfere with or obstruct the performance of
the same.
7. No member of the Industry shall apply a larger quantity price
to an order or shipment covering smaller quantities, or in any other
way depart from his published and established quantity differentials.
8. Free deals, premiums, or other similar schemes shall not be used
unless the price of the entire deal is at least equal to the regular
net list price of the bias tape plus the price of other merchandise
involved in the transaction. This shall not prohibit the distribution
of cabinets or other display material of a strictly advertising nature.
9. No member of the Industry shall withhold from or insert in
any quotation or invoice any statement that makes it inaccurate in
any material particular.
10. 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. This provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
11. No member of the Industry shall give discounts greater than
three percent (3%) ten (10) days e.o.m. or two percent (2%) ten
(10) days, sixty (60) days extra.
12. No member of the Industry shall ship any products of this
Industry on consignment, except to a bona fide sales agent.


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 Act, from time to time
to cancel or modify any order, approval, license, rule or regulation
issued under said Act.


2. This Code, except as to provisions required by the Act, may be
modified or amended on the basis of experience or (changes in circum-
stances, such modifications or amendments to be based upon applica-
tion to the Administrator and such notice and hearing as he shall
specify, and to become effective on approval of the President, unless
otherwise provided.


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 as such as may be required to meet individual cost
should be delayed, but when madl such increases should, as far as
possible, be limited to actual additional increases in the seller's costs.


This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 441.
Registry No. 251-09.

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