UNIVERSITY OF FLORIDA
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3 1262 08482 9901
Registry No. 286--04
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WOOL TEXTILE INDUSTRY
AS SUBMITTED ON JULY 15, 1933
AS APPROVED ON JULY 26, 1933
DO,-i. : :
Fe. ... ;
1. Executive Order
2. Administrator's Report to the President
3. Text of Code as Approved
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
e b the Superinndent o Docent Washington, D.C Prie 5 cents
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
JULY 26, 1933.
A Code of Fair Competition for the Wool Textile Industry,
having been heretofore submitted to the National Recovery Adminis-
tration, hearing. having been held thereon, and an Amended Code
of Fair Competition having been submitted oi July 25, 1933, said
original Code and said Amended Code having been submitted by
duly qualified and authorized representatives of the Industry com-
plying with the Statutory requirements as representing eighty per-
cent of the capacity of the Industry, and said Code being in full
compliance with all pertinent provisions of the National Industrial
Recovery Act, Now Therefore
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, on the report and
recommendation of the Administrator appointed by me under the
authority of said Act, and on consideration:
It is ordered that the said Code of Fair Competition for the
Wool Textile Industry, as amended and submitted on July 25, 1933,
is hereby approved, subject to the following condition:
(1) To effectuate further the policies of the Act, a Wool Textile
Industry Committee be created to cooperate with the Administrator
as a Planning and Fair Practice agency for the Wool Textile Indus-
try, which Committee shall consist of five representatives of the
Wool Textile Industry elected by a fair method of selection, to be
approved by the Administrator, and three members without vote
appointed by the Administrator.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON.
NATIONAL RECOVERY ADMINISTRATION
To the President:
This is a report of the hearing on the Code of Fair Practice for the
Wool Textile Industry in the United States, conducted in Washing-
ton on July 24th and 25th. 1933. in accordance with the provisions
of the National Industrial Recovery Act.
The following exhibits are included and attached:
1. Final code submitted.
2. Notice of hearing.
3. Bylaws of the National Association of Wool Manufacturers.
4. Notice of hearing sent by National Association of Wool
Manufacturers to its membership together with lists of
5. Statement of procedure.
6. Transcript of the records.
7. List of witnesses.
In the conduct. of the hearing 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 code which is attached was presented by duly qualified and
authorized representatives of the industry, and complies with the
statutory requirements, as representing fully eighty percent of the
wool textile machinery, including both looms and spindles.
ECONOMIC AND STATISTICAL ANALYSIS
The first significant factor to consider in connection with the wool
textile industry is the fact that since 1923 the gross volume of the
industry has been constantly declining, measured both by the per
capital consumption of woven goods and the total machinery activity
of the industry. In 1923 the per capital consumption of all worsted
and woolen woven goods was 7.26 square yards. In 1929 the per
capital consumption was 5.41 square yards. Per capital consumption
of dress goods for women's wear declined from 3.08 square yards in
1909 to .58 in 1929. an 81 percent decline. In 1923 the average broad
loom hours per week were 2,560.000: by 1932 the broad loom hours
had consistently fallen to an average of 1,170.000 hours per week.
Due to this constant decline, resulting from the inroads of com-
peting textile fabrics and changes in living habits and styles, the
wool textile industry has had extreme difficulty in readjusting its
affairs in an orderly manner. Therefore. this code is predicated
upon the assumption that the average activity of this constant period
of decline 1923-32 is a reasonable and adequate level of activity to
be attained and maintained. The average activity of the 1923-32
period corresponds very closely with the activity of the industry in
the year 1929.
A characteristic of the wool textile industry requiring special
consideration is the rather wide diversification in the various
branches of the industry.
This has been recognized by the National Association of Wool
Manufacturers in the groupings provided for in its by laws. Be-
cause of the limited availability of complete and reliable statistics
in reference to these individual branches of the industry, it is neces-
sary for the purposes of formulating this code to use figures which
had application to the industry as a whole. It is inevitable, there-
fore, that particular branches of the industry may be affected diffier-
ently by the application of a code built upon total figures of the
industry, but under the circumstances it, is felt that the code as
formulated should be immediately adopted, and actual facts obtained
through the analysis of the statistics and reports provided for in
the code should become the basis in the future for any revisions
required to provide properly for the specific needs of subdivisions
of the industry.
MINIMUM WAGES AND HOURS or LABOR
The Wool Textile Industry Code provides a minimum wage of
$14 in the North and $13 in the South for a 40-hour week. It is
significant that in this code no exceptions from the minimnm wage
are made for learners or any othe.fr class of workers.
According to a survey made by the sponsors of this code, cover-
ing a very substantial cross-section of the entire industry, it is
estimated that 43% of the total workers employed in the industry
are now receiving less than $14 per week, the minimum proposed
by this code. The average weekly waae of this entire group now
receiving less than $14 per week is $12.40 per week. Raising this
group to the minimum of $14 a week will provide an additional
weekly total payroll for the industry of approximately $100,000.
By reason of shortening hours, as provided by this Code, approxi-
mately 27,000 workers will be added to wool textile mills pay rolls
to operate the industry on the basis of the 1929 level of activity. The
addition of these 27,000 workers even at a minimum of $14 per week
would add an additional $378,000 weekly pay roll. Adding this
figure of $378,000 and the $100,000 accounted for above will mean the
addition of approximately $478,000 per week to the pay roll of the
industry, or $23,900,000 annually on a basis of full-time earnings, in
addition to the amount added by reason of raising the wages of
the 57% of the wage earners in the industry now earning $14 or
more per week on a full-time week basis.
While no similar cross-section study of wages for the industry is
available for 1929, the United States Bureau of Labor Statistics in
its study of wages and hours in the woolen and worsted textile indus-
try published June 1929, indicated that female offers, one of the
lowest paid classifications of the industry, were paid on an average
of 28.4 cents per hour in the year 1928, which rate may be considered
comparable to the 35-cent-an-hour minimum provided in this code.
In 1929 there were approximately 147,000 wage earners employed
in the wool textile industry. The application of the 40-hour week
proposed by this code would require the total employment of
approximately 173,000 workers to produce the 1929 volume, or
approximately 18% more than the number employed on the average
in the year 1929.
The sponsors of the code have made the following recommen-
The amendment to Section III prohibits the improper speeding
up of work (stretch-outs) beyond the present prevailing practices.
In adopting this provision, we wish emphatically to record our
belief that improvements in industrial methods, if applied scientifi-
cally, have always resulted in benefits both to labor and the public.
These benefits must be preserved. On the other hand, the unscien-
tific application of this principle-the so-called stretch-out system-
may have been detrimental to labor. In order to prevent abuses,
without hampering progress, we hereby request the Administrator
to appoint a committee to study this problem in order to insure a
practical definition of improper speeding up of work, and to avoid
its harmful results."
When the labor representatives clearly understood that the mini-
mum wage proposed in the code applied without qualification or
exception, to learners, apprentices and casual labor alike, they at once
concurred in the provisions of the code.
The Code provides for limitation of the hours of machinery opera-
tion as a measure designed to stabilize employment and production.
In arriving at a basis for machinery-hour limitation the sponsors of
the code fir't gave consideration to the number of looms and spindles
available for economical and effective use. The average demand for
the 10-year period from 1923 to 193 was computed in terms of
machine-hours required. After making allowances for plant effi-
ciency, balance of preparatory machinery, and especially for normal
seasonal variations, it was estimated that if every mill in the industry
operated two shifts constantly approximately 69 plant-hours would
be required per week to produce at the average 10-year (1923-32) rate
The 2 shifts of 40 machine-hours are required to maintain a 69-hour
machine-hour schedule, as only 80% of the looms in either a Woolen
or a Worsted Mill are available for operation at any one time.
The provision in the Code regulating machinery hours was the
only point at issue upon which a minority of the industry took ex-
ception. This minority withdrew its objection in favor of the
majority. It r' a fine e.xhbition, of spo-rsna'isihip oand unselfi.sh-
ne.s. A thorough analysis of this particular proldrem will be under-
taken immediately to obtain the actual facts by accurate statistical
study and research.
In this connection it is recommended that the Administrator
appoint a committee of five, consisting of one of recognized expe-
rience with technical knowledge from a textile educational institu-
tion, one to represent the Administrator, one to represent the Bureau
of Census, one of recognized ability in the field of economic and
statistical research, and one of recognized ability in the wool textile
industry, but who has no direct personal interest in the industry.
This hearing which has brought together one of the oldest and
most highly competitive industries in the United States, might well
serve as a fitting example of the broad, liberal give-and-take attitude
which the National Industrial Recovery Act and the clarifying state-
ments which have been broadcast from Washington have created in
the minds of American Industrialists.
HUGH S. JOHNSON, Administrator.
APPLICATION FOR APPROVAL OF CODE I
NATIONAL ASSOCIATION OF WOOL MANUFACTURERS,
229 FOURTH AVENUE, RooM 302,
New York City, July 14, 1933.
Telephone Algonquin 4-6434.
General HUGH S. JOHNSON,
Adtnhistrator under the National Industrial Recovery Act,
DEAR SmI: By this application for approval of a preliminary
code submitted herewith dealing chiefly with matters of employ-
ment as you have suggested, the wool textile industry, through this
Association, offers its whole-hearted support toward the accomplish-
ment of the objectives of the National Industrial Recovery Act.
The code provides for a shorter work week for employees, which
will increase the total number of employees; for higher minimum
wages for the shorter week than those now generally prevailing
for a longer week; for a limitation of the hours of operation of
productive machinery, with a view to the adjustment of output
to demand and to the stabilization of employment; and for the
elimination of any employment of minors below the age of sixteen.
We understand that these objectives are the first and immediate
concern of the administration and we desire to cooperate in their
attainment in our industry.
The cost of the products of the industry will be materially in-
creased by the larger wage cost per unit of product resulting from
the establishment of this code. We realize, however, that our
action in becoming subject to the code is part of the large program
of the administration looking toward the prompt increase of pur-
chasing power and the general improvement of economic conditions.
We stand ready to go forward in this industry with the initial step
toward the success of this vital effort.
We have endeavored to gather together all available data bearing
upon the subjects which we have dealt with in the code. Existing
data concerning present and past operations and such additional
facts as could be secured without unduly delaying the submission
of this code are not sufficient to allow intelligent dealing with long
range economic planning for this industry. To this end we have
provided in the code for a broad program of factual information as
the future basis for suggesting modifications of or supplements to
We must direct attention to the fact that the economic welfare of
the employees in this field has been dependent in considerable measure
upon the tariff on foreign importations. If the facts show that the
increased cost of manufacture resulting from this code requires pro-
ceedings under the section of the Act providing for protection from
undue importations of competing foreign products, we expect that
the necessary official action will be taken in order to preserve security
of employment and to maintain the industry.
Believing that our employees and customers on their part will
loyally cooperate, we submit this code confident that the President,
with the recommendation of yourself and your associates under the
Act, will hereafter approve such mo lifications thereof covering
wages, hours of labor, or of machinery, and such supplements to this
code covering fair trade practices or other subjects as will be neces-
sary to enable this industry successfully to adjust production to
changing demands, to stabilize employment, and to serve its cus-
tomers and the public.
THE NATIONAL ASSOCIATION OF WOOL MANUFACTURERS.
By following directors:
Harold S. Edwards, Walter Humphreys. Lewis A. Hird,
William H. Folwell, Abbot Stevens, Frederic W. Tip-
per, H. M. Ashby, A. E. Bonin, Marland C. Hobbs,
Frank D. Levering, Albert C. Bowman, Rowe B. Met-
calf, Percy Ainsworth, Louis Bachmann, F. C. Du-
maine, Jr., Curt E. Forstmann, Norman J. Fox,
Franklin W. Hobbs, Richard Lennihan, Allen R.
Mitchell, Jr., Addison L. Green, Millard D. Brown,
Arthur S. Harding, Fred Wolstenholme, J. L. Hut-
cheson, Jr., Charles F. H. Johnson, R. A. Julia, Aus-
tin T. Levy, William B. MacColl, J. L. Mender, Lionel
J. Noah, W. S. Nutter, Moses Pendleton.
[SEAL] By HAROLD S. EDWARDS, President.
SUBMISSION OF AMENDMENTS TO CODE
NATIONAL ASSOCIATION OF WOOL MANUFACTURERS
229 FOURTH AVENUE, NEW YORK CITY
WASHINGTON, D.C., July 25, 1933.
GENERAL HUGH S. JOHNSON,
Administrator under National Industrial Recovery Act,
DEAR SIR: We submit herewith a copy of three resolutions adopted
by the Board of Directors of the National Association of Wool Man-
ufacturers at a meeting held in this city on July 24, 1933. These
resolutions make amendments to the Code as presented to the Ad-
ministrator on July 15, 1933, pursuant to authority granted to the
Board of Directors by the Association in a resolution adopted by the
Association on July 14, 1933.
These amendments are made pursuant to suggestions made by
you, and we desire to make some comments thereon.
The amendment to Section II guarantees, in the higher brackets,
at least the same weekly wages for the shorter week as were previ-
ously paid for the longer week. It omits any provision regarding
the preservation of existing differentials between employees in the
higher brackets. The National Association of Wool Manufacturers
plans a careful investigation of the wage problem, with a view to
obtaining greater uniformity in wage rates throughout the industry.
We believe that a rigid limitation on the changing of existing dif-
ferentials, if written into the code, would unduly hamper such a
program without adding to the practical effect of the code.
The amendment to Section III prohibits the improper speeding
up of work (stretch-outs) beyond present prevailing practices. In
adopting this provision, we wish emphatically to record our belief
that improvements in industrial methods, if applied scientifically,
have always resulted in benefits both to labor and to the public.
These benefits must be preserved. On the other hand, the unscientific
application of this principle-the so-called stretch-out system-may
have been detrimental to labor. In order to prevent abuses, without
hampering progress, we hereby request the Administrator to appoint
a committee to study this problem in order to insure a practical
definition of improper speeding up of work, and to avoid its harmful
NATIONAL ASSOCIATION OF WOOL MANUFACTURERS,
By HAROLD S. EDWARDS, President.
CODE OF FAIR COMPETITION FOR THE WOOL TEXTILE
SUBMITTED BY NATIONAL ASSOCIATION OF WOOL MANUFAC-
TURERS ON JULY 15, 1933, AS AMENDED BY RESOLUTIONS OF
THE BOARD OF DIRECTORS OF THE ASSOCIATION ON JULY 24, 1933
To effectuate the policy of Title I of the National Industry Recov-
ery Act, during the period of the emergency, by reducing unemplloy-
ment, improving the standards of labor, eliminating practices
inimical to the interests of the public, employees, and employers, and
otherwise to improve the condition of the wool manufacturing
industry, to increase the consumption of industrial and agricultural
produ. ts by increasing purchasing power, and in other respects, the
following provisions are established as a code of fair competition
for the wool textile industry:
As used herein the term wool textile industry shall include the
following branches: Manufacture of worsted men's wear, worsted
women's wear, carded men's wear, carded women's wear, blankets,
cotton warp fabrics, reworked wool, knitted woolen goods, worsted
sales yarn (Bradford System), worsted sales yarn (French System),
carded sales yarn, and combing, wool scouring and carbonizing, and
S such other related branches as may from time to time be included
under the provisions of this code.
The term employers shall mean all persons who employ labor
in the conduct of any branch of the wool textile industry, as defined
S The term "employees shall mean all persons employed in the
conduct of any branch of the wool textile industry, as defined above.
The term "effective date" shall mean August 14, 1933, or, if this
code shall not have been approved by the President at least two weeks
prior to that date. then the second Monday after such approval.
The term person shall mean any individual, partnership, asso-
ciation, trust, or corporation.
On and after the effective date, the wages that shall le paid by
any employer to any employee, employed North of the Mason and
Dixon Line, shall be at not less than the rate of 350 an hour, or of $14
per week for forty hours of labor.
On and after the effective date, the wages that shall be paid by
any employer to any employee, employed South of the Mason and
Dixon Line, shall be at not less than the rate of 321_4 an hour, or of
$13 per week for forty hours of labor.
As to wages of employees now receiving not less than the minimum
wage established by this code, no employer shall, on or after the :
effective date, pay any such employee a wage rate which will yield -
a' less wage flr a work week of forty hours than such employee was
receiving for the same class of work for the established longer week
of forty-eight hours or more prevailing prior to the effective date.
III-HouRs OF LABOR
On and after the effective date no employer shall employ any em-
ployee in excess of forty hours per week, this, however, not to apply
to hours of labor for repairshop crews, engineers, electricians, firemen,
office, sales, and supervisory staff, shipping, watching, and outside
Until adoption of further provisions of this code that may prove
necessary to prevent any improper speeding up of work (stretch-
outs), no employee of any mill in the wool textile industry shall be
required to do any work in excess of the practices as to the class of
work of such employee prevailing on July 1, 1933, unless such increase
is submitted to and approved by the Administrator.
WV-HoURs OF OPERATION OF MACHINERY
On and after the effective date, no employer shall operate any comb
or any spinning spindle or any loom or any knitting machine for
more than two shifts of forty hours each per week.
V-E-MPLOYMENT OF MINORS
On and after the effective date, employers shall not employ any
minor under the age of sixteen years.
For the purpose of supplying the President and the Administrator
with requisite data as to the observance and effectiveness of this code,
and as to whether the wool textile industry is taking appropriate
steps to enable it intelligently to adjust its hours of labor, wages,
and productive capacity to changing demands of consumers, indus-
trial trends, and other conditions in accordance with the declared
policy of the National Industrial Recovery Act, each employer shall
furnish regular reports as hereinafter provided. The National Asso-
ciation of Wool Manufacturers, 229 Fourth Avenue, New York City
is hereby constituted the agency to provide for the collection and
receipt of such reports and for the forwarding of the substance of
such reports to the President, the Association to provide for receiving
and holding such reports themselves in confidence. Such reports
shall be in such form, and shall be furnished at such intervals, as
shall be prescribed by the Association, and shall contain such infor-
mation relevant to the purposes of this code, as shall be prescribed
by the Association from time to time, including information with
respect to the following or related subjects:
1. Employment, hours, wages, and wage rates.
2. Production, orders, billings, and stocks (in process and finished)
of products manufactured.
3. Financial and cost data.
4. Activity, purchases, sales, and scrapping of machinery.
5. Consumption and stocks of raw materials.
It is hereby declared to be the policy of this code that where tlhe
costs of executing contracts for wool or worsted yarns or textiles,
entered into prior to the effective date of this code, are increa-wd as
a result of the operation of provisions of this code, appropriate ad-
justments of such contracts should be made so as to reflect such
increased costs, and, further, that. where the performance of orders
for wool or worsted yarns or textiles, accepted prior to the effective
date of this code, is delayed or prolonged as a result of the operation
of provisions of this code, appropriate additional time should be
allowed for the completion of such orders. The National Associa-
tion of Wool Manufacturers is hereby constituted an agency to assist
in effecting such adjustments, where such adjustments are not agreed
upon by the parties.
VIII-PRovISIONS FROM RECOVERY ACT
Employers shall comply with the requirementii of the National
Industrial Recovery Act. as follows:
1. That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, ant shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representative, or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
2. That no employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing; and
3. That employers shall comply with the maximum hours of laIor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
IX-CANCELLATION OR MODIFICAT!(ON
This code and all the provisions thereof are expres-sly made sulb-
ject to the right of the President, in accordance with Sec. 10 (b)
of Title I of the National Industrial Recoverv Art, from time to
time to cancel or modify any order, approval. license, rule, or rtegu-
lation issued under Title I of said Act.
X-CHANGES AND ADDITIONS
Such of the provisions of this code as are not required to be in-
cluded therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated in such
manner as may be indicated by the needs of the public, by changes
in circumstances, or by experience; all the provisions of this code,
unless so modified or eliminated, shall remain in effect until the
expiration date of Title I of the National Industrial Recovery Act.
In order to enable the industry to conduct its operations subject
to the provisions of this code, to establish fair trade practices within
the industry and with those dealing with the industry, and otherwise
to effectuate the purposes of Title I of the National Industrial Re-
covery Act, supplementary provisions of this code or additional
codes may be submitted from time to time for the approval of
If any provision of this code is declared invalid or unenforceable.
the remaining provisions thereof shall nevertheless continue in full
force and effect in the same manner as if they had been separately
presented for approval and approved by the President.
I, WALTER HUMPHREYS, Secretary of the National Association of
Wool Manufacturers, do hereby certify that the foregoing is a true
copy of the Code of Fair Competition for the wool textile industry
submitted to the Administrator under the National Industrial Re-
covery Act on July 15, 1933, as amended by vote of the Board of
Directors of the said Association at a meeting held at the Hotel
Washington, Washington, D.C., on July 4, 1933.
Dated July 25, 1933.
[SEAL] WALTER HUMPHREYS,