UNIVERSITY OF FLORIDA
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3 1262 08483 0040
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AS REVISED ON AUGUST 28, 1933
Fr sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
WE DO OUR PART
The Code for the Textile Processing 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
Registry No. 297-1-13
NATIONAL TEXTILE PROCESSORS GUILD, INC.
PROPOSED CODE OF FAIR COMPETITION OF THE TEXTILE
SUBMITTED BY THE NATIONAL TEXTILE PROCESSORS GUILD, INC.
This Code of Fair Competition for the Textile Processing Industry
is intended to effectuate the purposes of the National Industrial Re-
covery Act by reducing unemployment, increasing wages, improv-
ing the working conditions of labor, and eliminating unfair and
harmful competitive practices.
This Code is based upon the fact that the inherent and chief char-
acteristic of the Textile Processing Industry is that it is not en-
gaged in the production of commodities, but principally performs
services with respect to the products of other textile industries, such
as fibres, yarns, and fabrics; thus economically this industry is not
in a position to control or correlate its activities with the demand
of other industries.
Whenever used in this Code, the terms defined in this Article shall,
unless the context shall otherwise indicate, have the meanings here-
inafter set forth. The definition of any such term in the singular
shall apply to the use of such term in the plural, and vice versa.
SECTION I. The term industry means and includes the business
of Commission scouring, bleaching, dyeing, and glazing of raw stock,
tops and yarns of cotton, wool and rayon and/or other synthetic
fibres and/or combinations thereof which may be spun into yarn
(except silk and spun silk yarn) and woolen and worsted fabrics
including the application of such processes to hosiery, and other
SEC. II. The term Guild means the National Textile Processors
Guild, Inc., a membership corporation organized tinder the laws
of the State of New York.
SEC. III. The term Board means the Board of Directors (as
from time to time constituted) of the Guild.
SEC. IV. The term Principal machinery means all machinery
and equipment used in the Industry except only such machinery and
equipment as may be determined by the Board to be preparatory
and/or finishing and/or accessory machinery and equipment for each
branch of the Industry.
SEO. V. The term "Act" means the National Industrial Recovery
Act as approved by the President of the United States on June 16th,
SEC. VI. The term employee" means all persons working in the
Industry for wages and/or salaries; except those employees who
serve in executive, administrative, supervisory, sales, and,'or techni-
SEC. VII. The term persons" shall include natural persons,
partnerships, associations, and corporations.
SEC. VIII. The term "The effective date" shall be the second
Monday after this Code shall have been approved by the President
of the United States, pursuant to the Act.
SECTION I. Collective Bargaining.-Pursuant to subsection (a) of
Section 7 of the National Industrial Recovery Act and so long as
the Code shall be in effect, the Code shall be subject to the following
(1) 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;
(2) 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 own choosing; and
(3) 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, as provided herein.
SEC. II. Marihnwn, Hours.-On and after the effective date hereof
employers in the industry shall not operate on a schedule of hours
of labor for their employees, except repair crews, engineers, elec-
tricians, firemen, office, laboratory and supervisory staff, receiving
and shipping, watching, and outside crews and cleaners, in excess
of forty hours per week, subject to the flexible provision that be-
cause of the exigencies of the industry it may be necessary to work
employees more than forty hours per week on occasion but the
weekly work for each individual for six months calendar period be-
ginning with the effective date hereof shall not exceed an average of
forty hours per week nor shall such additional work required exceed
eight hours in any one week.
On and after the effective date hereof, the maximum hours of
labor for office employees in the Industry shall be an average of
forty hours per week over each period of six months, beginning
with the effective date hereof.
The hours in each week during which any employee shall have
worked in other establishments or in other industries, shall be in-
cluded in the total number of hours such employee is permitted to
work under this Code.
SEC. III. Min.imu7m Wage.-(1) On and after the effective date
hereof, the minimum wage that shall be paid by employers in the
Industry to any of their employees including apprentices shall be
as follows: thirty-two and one half cents per hour, or thirteen dol-
lars for forty hours of labor.
The Industry recognizes that certain operations are classified as
skilled and certain operations as semi-skilled and that the foregoing
minimum wage has no reference to such classes to whom higher
wages than the minimum shall be paid.
(2) Inasmuch as many employers in this industry have hereto-
fore made adjustments in hours and wages and in order to insure
equality in the application of this article in the industry, it is pro-
vided that no employee after the effective date hereof shall receive
for forty hours of labor less compensation than he received or would
have received as of May 1st, 1933, for the weekly schedule of work
(excluding overtime) in operation on that date in the plant in which
he is employed.
SEO. IV. Minors.-On and after the effective date, no person
under sixteen years of age shall be employed in the Industry.
SEC. V. Machine Hours.-After the effective date hereof, no per-
son in the Industry shall operate any principal machinery more
than eighty hours in any week.
SECTION I. (a) To effectuate further the policies of the Act, a.
Textile Processing Industry Committee is hereby designated to co-
operate with the Administrator as a Planning and Fair Practice
agency for the industry. This Committee shall consist of five rep-
resentatives of the Industry elected by a fair method of selection,
to be approved by the Administrator and three members without
vote appointed by the President of the United States. Such agency
may from time to time present to the Administrator recommenda-
tions based on conditions in their industry as they may develop from
time to time which will tend to effectuate the operation of the pro-
visions of this Code and the policy of the National Industrial
(b) Such agency is also set up to cooperate with the Administrator
in making investigations as to the functioning and observance of any
provisions of this Code, at its own instance, or on complaint by any
person affected, and to report the same to the Administrator.
(c) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
vision 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 said Act, and specifically
to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
(d) 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 the circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code or
additional codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and destruc-
tive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act con-
sistent with the provisions thereof.
SEC. II. All employers engaged in the Industry and coming under
the operation of this Code shall bear their proportionate share of
the expense incident to initiating, securing the approval of, and ad-
ministrating this Code of Fair Competition. These funds shall be
paid to the Board or its duly-constituted agency for that purpose.
AI'TICLE IV--UNFAIR COMPETITION
SECTION I. Selling Below Cost.-Pending the completion of the
installation of a system of cost finding throughout the industry, but
only after such final approval by the President of the United States,
the Board is hereby authorized to fix basic costs inclusive of depreci-
ation and obsolescence for each type of service rendered by any con-
cern in the industry.
No concern shall charge below cost, inclusive of depreciation and
obsolescence, as determined by the Board pursuant to resolution for
the time being or by the cost-finding system when installed or
SEC. II. Rebates and Allowtances.-No persons in the Industry
shall allow any rebates and, or refunds and or special discount, im-
proper damage claims and 'or improper deductions or allowances,
in any form to any customer or his agent upon any condition
SEC. III. Misrepresentations.-No person in the Industry shall
make any false statement and/or false representations, oral or writ-
ten, relative to the services performed by him, with the. intent or
with the effect of deceiving or misleading customers or others.
No person in the Industry shall make or issue any bill or invoice
which falsely states the quality or quantity, charges, and terms for
SEC. IV. Transportation Charges.-No person in the Industry
shall allow his customers transportation charges upon merchandise
delivered for processing or terms of credit, or cash discounts, other
than as may be authorized from time to time by the Board.
SEC. V. Gratuities.-The giving or granting, directly or indirectly,
or money, goods, or anything of value to customers or prospective
customers or their agents. or employees or representatives, for the
purpose of influencing and 'or obtaining business, is an unfair trade
SEO. VI. Smnall Lots.-No person shall process small lots of cus-
tomers' merchandise below the minimum quantities used as a charge
basis without making a differential charge as may be established by
the Board from time to time.
SEC. VII. Re-Dyeing.-No person in the Industry shall redye
fibres, yarns, fabrics, and/or hosiery without charging for redyeing
and stripping (where necessary), as may be established by the Board
from time to time.
SEO. VIII. Unit of Work.-The Unit of work and charge in the
industry shall be fixed by the Board."
SEC. IX. False Satemzents.-No person in the Industry shall make
any false, oral or written, statement or representation with respect
to the financial standing, ability, quality, or service, character of
management of other persons or employees in the Industry.
SEO. X. Re-Shipnent Unprocessed.-No person in the Industry
shall release from his possession any merchandise, unprocessed, be-
longing to others, unless a charge is made to his customer, as directed
by the board.
ARTICLE V-PRODUCTION CAPACITY
After the effective date, (1) no person not now engaged in the
Industry shall operate any principal machinery unless lie shall first
have secured permission to do so from the Administrator, after an
opportunity shall have been given the Board to be heard thereon;
(2) all persons now engaged in the industry shall register their prin-
cipal machinery with the Administrator or his appointee; (3) except
for the replacement of a similar number of existing principal ma-
chines or to bring the operation of existing principal machinery into
balance, all persons in the Industry shall secure certificates from the
Administrator that such installation will be consistent, with effectu-
ating the policy of the Act, and such certificates may be granted or
withheld by the said Administrator.
ARTICLE VI-UNIFORM CONTRACT
The Board is hereby authorized, pursuant to resolution by them
to be adopted hereafter, to adopt a uniform contract which shall be
the standard form of contract for the industry, and which shall be
used in all transactions providing for the processing of material
serviced by the industry, subject only to such changes therein as may
from time to time be authorized by the said Board. Other standard
forms of contract appropriate to respective divisions of the industry
may be adopted by those divisions, subject to the approval of the
ARTICLE VII-CLAIM ADJUSTMENT
To establish and participate in the establishment of a Control
Adjustment Bureau for the adjustment of claims of customers against
persons in the Industry and upon the establishment of such Bureau,
all claims shall be adjusted subject to the rulings of the said Bureau
and not otherwise, except with the approval of the Board.
The Board may establish rules and regulations providing for the
withdrawal of credit from customers who fail and 'or refuse to pay
for services performed for them by any person in the Industry.
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