UNIVERSITY OF FLORIDA
1IIiIInII 2 0II 84 I9i 7i 5Ii llH|I llIl lI1111 111 1 i
3 1262 08482 9752
Registry No. 289-01
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AND SLEEPING INDUSTRY
AS SUBMITTED ON AUGUST 28. 1933
The Code for the Varnished Tubing and Sleeving Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington. D.C. - Price 5 cents
THE VARNISHED TUBING INDUSTRY
CODE OF FAIR COMPETITION FOR THE VARNISHED
TUBING AND SLEEPING INDUSTRY
To effectuate the policy of Title I of the National Industrial
Recovery Act, during the period of the emergency, by redu.cin and
relieving unemployment, improving the standards of labor, eliminat-
ing competitive practices destructive of the interests of the public,
employees and employers, relieving the disastrous effects of over-
capacity, and otherwise rehabilitating the varnished tubing and
sleeping industry and by increasing the consumption of industrial
and agricultural products by increasing purchasing power, and in
other respects, the following provisions are established as a code of
fair competition for the varnished tubing and sleeping industry.
No provision in this Code shall be interpreted or applied in such a
manner as to:
(a) Promote or permit monopolies.
(b) Permit or encourage unfair competition.
(c) Eliminate, discriminate against, or oppress small enterprises.
This Code shall apply to both intrastate and interstate transactions
and shall be enforced impartially upon all members of the Inldustry
whether or not they are members of the Varnished Tubing Associa-
tion-the applicant for this Code-after any objecting member of
the industry has been given an opportunity to present his case to the
PART I-EMPLOYMENT AND PRODUCTION
SECTION 1. Defnitions.-The term "Varnished Tubing and Sleev-
ing Industry" as used herein is defined to mean the braiding of
cotton yarn and the processing of same in the manufacture of
varnished tubing and varnished sleeping. The term "employees"
as used herein shall include all persons employed in the conduct of
such operations. The term member of the industry as used
herein is defined to mean manufacturers, importers, and/or pri-
mary distributors of varnished tubing and/or varnished sleeping.
The term association as used herein is defined to mean the
the Varnished Tubing Association or its successors. The term "ef-
fective date as used herein is defined as Monday, August 7, 1933.
SEc. 2. Labor.-(a ) 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 em-
ployers of labor, or their agents, in the designation of such represen-
tat.ives or in self-organization or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection.
1---1---- -- -----L, ?----
(b) No employee and no oIne seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribed by the President.
SEC. 3. On and after the effective date the minimum wage that
shall be paid by employers in the industry to any of their em-
ployees-except learners during a six weeks' apprenticeship, cleaners,
and outside employees-shall be at the rate of $14 per week for
forty hours of labor.
(a) The amount of differences existing prior to July 17, 1933,
between the wage rates paid various classes of employees (receiving
more than the established maximum wage) shall not be decreased;
in no event, however, shall any employer pay any employee a wage
rate which will yield a less wage for a work week of 40 hours than
such employee was receiving for the same class of work for the
longer week of 48 hours or more prevailing prior to July 17, 1933.
It shall be a function of the Board of Directors of the Varnished
Tubing Association to observe the operation of these provisions and
recommend such further provisions as experience may indicate to
be appropriate to effectuate their purposes.
(b) Employers shall pay the minimum rate of pay per hour of
employment established regardless of whether the employee's com-
pensation is otherwise based on a time rate or upon a piece-work
SEC. 4. On and after the effective date, employers in the industry
shall not operate on a schedule of hours of labor for their employ-
ees-except repair-shop crews, engineers, electricians, firemen, office
and supervisory staff. shipping, watching, and outside crews, and
cleaners-in excess of 40 hours per week.
(a) On and after the effective date the maximum hours of labor
of repair-shop crews, engineers, electricians, and watching crews
in the industry shall, except in case of emergency work. be forty
Liours a week with a tolerance of 10 percent. Any emergency time
in any mill shall be reported monthly to the Secretary of the
(b) The maximum hours of labor for office employees in the
industry shall be an average of forty hours a week over each period
of six months.
(c) Under no circumstances shall an employee be employed or
permitted to work for one or more employers in the industry in the
aggregate in excess of the prescribed number of hours in a single
(d) The Industry shall submit to the Administration by January
1, 1934, a schedule of minimum wages and maximum hours for
cleaners and outside workers.
SEC. 5. O(n and after the effective date, employer.- in the Industry
shall not employ any minor urdler the age of 16 years.
SEC. 6. With a view to keeping the President informed as to the
observance or nonobservance of this Code of Fair Competition, and
as to whether the Varnished Tubing Industry is taking appropriate
steps to effectuate the declared policy of the National Industry Re-
covery Act, each person engaged in said Industry shall furnish to
tli Stcretary of the Varnished Tubing Association duly certified
reports inl sIIubtance as follow and in such form as may hereafter
(a) Wages and Hours.-Returns every four weeks showing actual
hours worked by the various occupational groups of employees, and
minimum weekly rates of wages.
(b) Reports of Production, Stocks, and Orders.-Quarterly re-
turns shall be made by every member of the Industry showing orders
of each industry product shipped in feet. Varnished Tubing Associa-
tion or its successors, 522 Fifth Avenue, New York City, is consti-
tuted the agency to collect and receive such reports.
PART II-F.IR COMPETITIVE PRACTICES
SEcrIOM' 1. Every employer in the Industry shall use an ar'iilint-
ing system which conforms to the principles of the uniform ani1
standard method of accounting set forth in the Sixth Elition of
the Manual of Accounting, prepared and published by the National
Electrical Manufacturers Association, and a costing -ysteni to be
formulated or approved by the Board of Directors of the Associa-
tion to meet the individual conditions of the Industry.
SEC. 2. No employer in the Industry shall sell or exchange any
product of the Industry at a price or upon such terms or conditions
that will result, in the customer paying for the goods received less
than the cost. to the seller, determined in accordance with the uniform
and standard method of costing hereinabove prescribed.
SEC. 3. Inasmuch as it is the recognized practice of the Industry
to sell its products on the basis of printed net price lists, or price
lists with discount sheets, and fixed terms of payment. which are
distributed to the trade, each member of the Industry shall, within
ten days of the effective date hereof, file with the Secretary of the
Association a net price list or a price list and discount sheet as the
case may be individually prepared by him showing his current prices,
or prices and discounts, and terms of payment, and the Secretary
of the Association shall immediately send copies thereof to all known
manufacturers of such specified product. Revised price lists with
or without discount sheets may be filed from time to time thereafter
with the Secretary of the Association by any manufacturer of such
product, to become effective upon the date specified therein, but such
revised price lists and discount sheets shall be filed with the Secre-
tary of the Association ten days in advance of the effective date,
unless the Board of Directors of the Association shall authorize a
shorter period. Copies of revised price lists and discount sheets,
with notice of the effective date specified, shall be iinmediatldy sent
to all known manufacturers of such product, who thereupon may file.
if they so desire, revisions of their price lists and/or discount sheets,
which shall become effective uplon the date when the revised price
list or discount sheet first filed shall go into effect.
SEC. 4. No member of the Industry shall sell directly or indirectly
by any means whatsoever any product of the industry at a price
lower or at discounts greater or on more favorable terms of pay-
ment than those provided in his current net price lists or price lists
and discount sheets.
SEC. 5. Every member of the Industry shall keep on file with the
S Secretary of the Association an up-to-date list of all his distributors
and or agents, each one of whom shall sign a written agreement to
accept and abide by the preceding Section 4 of Part II of this Code.
SEC. 6. If varnished tubing or varnished sleeping is offered for
sale in this country at a price which threatens to defeat the purposes
of the Act the Board of Directors of the Association shall request
the President of the United States to license all members of the In-
dustry and or to place an embargo on the importation of such
SEC. 7. When a member of the Industry sells nonindustry and in-
dustry products together to the same customer, he shall not quote
a combined lump-sum price which is less than the sum of current
market prices of the separate products.
SEC. b. No member of the Industry shall give or accept secret
payment or allowance of rebates, refunds, or unearned' discounts
whether in the form of money or otherwise or extend to certain
purchasers special services and 'or privileges not extended to all pur-
SEC. 79. No member of the Industry shall be a party to commercial
bribery in any form.
SEC. 10. No member of the Industry shall engage in any misrep-
resentation-direct or implied.
SEC. 11. No member of the Industry shall make an invoice and/,or
contract which is a false record of a transaction.
SEC. 12. No member of the Industry shall induce or attempt to
induce the cancellation of an order or the breach of a contract be-
tween a competitor and his customer or distributor.
SECTION 1. The Varnished Tubing Association, the applicant here-
in, unanimously agrees to accept and be bound by all the provisions
of this Code on and after the effective date pending formal approval
of the Code by the President, and with such changes and/or addi-
tions as he may designate.
SEC. 2. The Association imposes no inequitable restrictions on ad-
mission to membership and every member has but one vote.
SEC. 3. To further effectuate the policies of the Act the Board of
Directors of the Association shall cooperate with the Federal Admin-
istrator as a planning and fair practice agency for the Industry.
Such agency may from time to time present to the Federal Admin-
i.trator recommendations based on conditions in the Industry as
they may develop from time to time which will tend to effectuate
the operation of the provisions of this Code and the policy of the
National Industrial Recovery Act.
SEC. 4. Any alleged infraction of the regulations governing the
Industry shall be investigated by a. disinterested party, designated
by the Board of Directors, who shall report to an Arbitration Board
of three members, one of whom shall be appointed by the accused
member of the Industry. one by the Board of Directors of the Asso-
ciatin. and one shall be selected by the other two. In the event
of the first two appointees being unable to agree on a third member
of the Arbitration Board, the third member shall then be named by
a United States District Court Judge upon the request of the Board
of Directors of the Association. This Arbitration Board shall give
a hearing to all parties at interest and shall report its findings to
the Board of Directors of the Association for its action.
SEC. 5. Every member of the Industry shall, upon reque-t, make
any or all of his records pertaining to Industry business available to
a disinterested party designated by the Board of Directors of the
SEC. 6. The expense of administrating this Code shall be budgeted
by the Association. Such expense shall be charged to and paid by
every member of the Industry in proportion to his shipments, in dol-
lars, of varnished tubing and varnished sleeping sold as such in the
open market during the next preceding calendar year, provided that
the minimum annual payment hereunder shall be $250.
SEC. 7. Every member of the Industry shall pay to the As-,oria-
tion upon demand, semiannually in advance, one half the annual
assessment determined in accordance with Section 6 of Part III
hereof. Nonpayment. within thirty (30) days of amounts assessed
against any member of the Industry shall constitute a violation of
SEC. 8. This ('ode and all the provisions thereof are expressly
made subject to the right of the President, in accordance with tce
provisions of Clause 10 (b) 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 the said act, and specifi-
cally to the right of the President to cancel or modify his approval
of this Code or any conditions imposed by him upon his approval
Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may,
with the approval of the President, be modified or eliminated as
changes in circumstances or experience may indicate. It is con-
templated that from time to time supplementary provisions to this
Code will be submitted for approval of the President to prevent
unfair competition in price and other unfair and destructive com-
petitive practices and to effectuate the other purposes and policies
of Title I of the National Industrial Recovery Act consistent with
the provisions hereof.
VARNISHED TUBING ASSOCIATION,
STEWART N. CLARKSON, Secretary.