NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND LACQUERED FABRICS
AS SUBMITTED ON AUGUST 28, 1933
REGISTRY No. 999-1-02
The Code for the Leather Cloth and Lacquered Fabrics 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 approvalof
the National Recovery Administration
as applying to this industry
S. L .
O- W DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
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CODE OF FAIR COMPETITION FOR LEATHER CLOTH
AND LACQUERED FABRICS INDUSTRY
ADOPTED AT INDUSTRY MEETING, HOTEL COMMODORE,
NEW YORK, N.Y., AUGUST 16, 1933
For the purpose of complying with the provisions of Title I of the
National Industrial Recovery Act, and effectuating the policy of
Congress as declared in said Act, insofar as applies to the within
Industry, the following conditions and principles are adopted as a
Code of Fair Competition (hereinafter referred to as the "Code"),
for the Leather Cloth and Lacquered Fabrics Industry.
(a) "Act" means National Industrial Recovery Act.
(b) "President" means the President of the United States of
(c) "Administrator" means the duly appointed representative of
the President to administer the National Industrial Recovery Act.
(d) "Institute" means the Institute of Leather Cloth and Lac-
quered Fabrics Manufacturers, 103 Park Avenue, New York City.
(e) "The Industry" means and includes the business of manufac-
turing and selling all leather cloth and lacquered fabrics or kindred
Pyroxylin coated fabrics.
(f) "Persons" means natural persons, partnerships, associations,
corporations, and trusts, including trustees in bankruptcy and re-
(g) "Productive Machinery" as used in this Code means coating
machines and/or other equipment by which additional weight of
Pyroxylin coating is applied, not including printing and/or spraying
(h) "Effective Date" means the first Monday after the first Tues-
day after this Code is duly approved by the President.
Any member of the Industry is eligible for membership in the
Institute. The provisions of this Code insofar as provided by the
Act shall be applicable to all members of the Industry, and each
member thereof shall be responsible for his pro rata share of reason-
able costs and expenses for creating and administering this Code.
ARTICLE III-HOURS OF LABOR, RATES OF PAY, MINORS, AND OTHER
CONDITIONS OF EMPLOYMENT
SECTION 1. Hours of Labor.-(a) This section shall be applicable to
all employees except salesmen and those occupying executive, admin
istrative, supervisory, or technical positions.
8222-33 ( 1
(b) On and after the effective date, the hours of work for employees,
except those enumerated above and hereinafter, shall be limited to a
maximum of forty (40) hours per week, except that if for any reason
it is necessary to require a greater rate of weekly work for certain
employees, this shall be adjusted so that the total time worked per
employee in any consecutive period of six (6) months shall not exceed
an average of. forty (40) hours per week, but no employees shall be
employed more than forty-eight (48) hours in any one week.
(c) On and after the effective date, the maximum hours of labor
of repair shop crews, engineers, firemen, electricians, and watchmen
in the Leather Cloth and Lacquered Fabrics Industry shall, except in
case of emergency work, be forty (40) hours a week with a tolerance of
ten (10) percent. Any emergency time in any mill shall be reported
monthly to the Institute.
(d) On and after the effective date, the maximum hours of labor for
office employees in the Industry shall be on an average of forty (40)
hours per week in any consecutive period of six (6) months.
SEC. 2. Minimum Wages.-On and after the effective date the min-
imum wage that shall be paid by employers in the Leather Cloth and
Lacquered Fabrics Industry to any of their employees shall not be
less than forty (40) cents per working hour. In the case of any em-
ployee whose compensation is based upon a measure other than time,
the total compensation paid shall be no less than such employee would
be entitled to receive if his compensation were measured by a time
rate; but nothing contained in this Section 2 shall be considered as an
attempt to set a maximum pay for anyone employed in the Industry.
Provided, however, that where a State law specifies a higher minimum
wage no member of this Industry shall employ within such State any
person at a rate below the wage specified by such State law.
.SEC. 3. Minor Labor.-On and after the effective date, employers
in the Leather Cloth and Lacquered Fabrics Industry shall not employ
any person under sixteen (16) years of age. Provided, however, that
where a State law specifies a higher minimum age, no member of this
Industry shall employ within such State any person below the age
specified by such State law.
SEc. 4. Employee Organization and Bargaining.-(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 employers 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) No employee, and no one seeking employment in the Industry,
shall be required as a condition of employment, to join any company
union, or to refrain from joining, organizing, or assisting a labor organ-
ization of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
ARTICLE IV-PLANT-MAACHINE HOURs
Employers in this Industry shall not operate productive ma-
chinery a total of more than two (2) shifts of forty (40) hours each
per week, averaged over any consecutive six months' period, but not
more than ninety-six (96) hours in any one week.
The Institute is hereby designated the Agency to cooperate with
the Administrator in administering, supervising, and promoting the
performance of the provisions of this Code by the members of the
(a) With a view to keeping the President and the National Re-
covery Administration informed as to the observance or nonobserv-
ance of this Code, and as to whether the members of the Industry are
taking appropriate steps to effectuate the declared policy of the Act,
and to provide for making available to the Administration and mem-
bers of the Industry information concerning the Industry, each mem-
ber of the Industry shall prepare and file with the Secretary of the
Institute and to be distributed by the Institute at such times and in
such manner as herein or hereafter may be prescribed by the Industry,
reports and statistical data covering and relating to the number of
persons employed, wage rates, hours of work, plant and machine
hour operations, volume of production, volume of sales and/or ship-
ments billed, consummated sales, stocks on hand, plant capacity, and
productive machinery owned and/or in place, and such other data as
may be useful to the Industry which may be specified or required
by the Industry, subject to the approval of the Administrator, or by
(b) Upon the effective date or at such time thereafter as the
Industry may determine, each member of the Industry shall file with
the Institute a complete list of those products now covered by the
Institute's activities, with a complete description of such goods,
including construction, color and finish thereof. And each member
of the Industry shall, at such time, file with the Institute price sched-
ules, price lists, discount sheets, and/or a list of all prices, currently
made, for all classes of customers, covering all such products of the
Industry, including therein base prices, net prices, basing points,
terms, discounts, allowances and all conditions relating to or in any
wise affecting any sale of the same. Whereupon the Institute shall
immediately send copies of the same to all members of the Industry
who have signed or approved this Code, or who may be subject to
this Code and who have so filed with the Institute such schedules,
lists, discount sheets or statements of currently made prices.
(c) Revised price schedules, lists, discount sheets. and/or statements
of current prices or changes therein, may be so filed from time to time
thereafter by any member of the Industry to become effective upon
the date specified therein, but such schedules, lists, discount sheets
and/or statements of current prices or changes therein, shall be filed
with the Institute ten days in advance of the effective date, unless the
Industry shall authorize a shorter period. Thereupon copies of all
such revised schedules, lists, discount sheets and/or statements of
current prices or changes therein, with notice of the effective dates
thereof specified, shall be immediately sent. by the Institute to all
such members of the Industry, who thereupon may file, if they
individually so decide, to be promptly and similarly distributed,
revisions of their price schedules, lists, discount sheets and/or state-
ments of current prices or changes therein, which shall become
effective upon the date when the revised price schedules, lists, dis-
count sheets and/or statements of current prices or changes therein
first filed shall go into effect.
(d) No member of the Industry shall sell directly or indirectly by
any means whatsoever any product of the Industry covered by the
provisions of paragraphs (b) and (c) of this Article VI at a price
lower, or at discounts greater, or on more favorable terms of payment
than those provided in his current price schedules, lists, discount
sheets, and/or statements of currently made prices, filed and dis-
tributed as herein provided.
(e) All reports, statistics, data and information filed in accordance
with the provisions of this Code shall be duly certified, when re-
quested by the Institute or the National Recovery Administration,
and the same shall be confidential; the individual figures and data
filed by each member of the Industry shall be compiled with s;nilar
reports and data from the other members of the Industry, and. dis-
tributed to members of the Industry in combined totals, except as
may be otherwise specified by the Institute. In no event shall the
individual reports of volume of production, volume of sales, orders
received, unfilled orders, or stocks on hand, be revealed or disclosed
by the Secretary of the Institute, except as may be required by the
National Recovery Administration for the purpose of facilitating
the administration and enforcement of the Act and the provisions
of this Code.
(f) Prior to the installation of additional productive machinery by
members of the Industry, or persons engaging in this Industry,
except for the replacement of similar productive machinery, the
Institute may make recommendations to the Administrator that such
persons shall first secure certificates from the Administrator that such
installation of productive machinery will be consistent with the
effectuating of the policy of the Act during the period of the emer-
gency, and also recommendations for the granting or withholding by
the Administrator of such certificates if so required by him.
ARTICLE VII-TRADE PRACTICES
Upon the effective date of this Code, ethical and commercial prin-
ciples and practices as set forth in Exhibit "A" hereto annexed and
made a part of this Code, shall be observed as standards for this
Industry, and deviation therefrom or violations thereof shall be
regarded as a violation of this Code.
ARTICLE VIII-VERIFICATION OF REPORTS-TRADE PRACTICES
All reports, statistics, data, and information required by this Code
to be filed with the Institute and the trade practices set forth in said
Exhibit "A" shall be subject to verification and the checking of the
books and records of the members of the Industry, by a competent
and disinterested person at such time or times, and by such person or
persons as may be determined by the Institute. Provided, if it
should appear as determined by such disinterested person or persons
that the reports, statistics, or data were not filed when and as required
by this Code, or were wilfully inaccurate, or that any member of the
Industry had indulged in trade practices in violation of this Code, the
expense of such verifying work shall be paid to the Institute by the
member of the Industry so in default.
If any employer of labor in the Industry is also an employer of labor
in any other industry, the provisions of this Code shall apply to and
affect only that part of his business which is included in this
ARTICLE X-CANCELLATION OR MODIFICATION OF GOVERNMENT
As required by Section 10 (b) of Title I of the Act, the following
provisions are contained in this code:
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under this Title I.
Such of the provisions of this Code as are not required to be included
therein by the National Industrial Recovery Act may, with the ap-
proval 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 destructive competi-
tive practices and to effectuate other purposes and policies of Title I
of the National Industrial Recovery Act consistent with the provisions
Approved at meeting on August 16th, 1933, attended (in person or
by proxy) by the following manufacturers, representing a substantial
majority of the industry (estimated at over 90%, both in volume and
ATHOL MANUFACTURING COM-
BOWEN MILLS, INC.
L. E. CARPENTER & Co., INC.
L. C. CHASE & COMPANY.
COATED TEXTILE MILLS, INC.
E. I. Du PONT DE NEMOURS &
THE FEDERAL LEATHER COM-
THE HOLLISTON MILLS, INC.
THE KERATOL COMPANY.
LEATHER FINISH FABRICS, INC.
THE MASLAND. DURALEATHER
THE PANTASOTE LEATHER COM-
THE PERMATEX FABRICS COM-
THE STANDARD TEXTILE PROD-
THE WESTERN SHADE CLOTH
WEYMOUTH ART LEATHER COM-
THE ZAPON COMPANY.
EXHIBIT "A" :
No member of the Industry shall adopt any of the trade practices
enumerated in this Exhibit, and the indulgence in any such trade
practices shall be regarded as an unfair method of competition, and
a violation of this Code:
1. Interference with Existing Contracts.-Knowingly or wilfully in-
terfere with an existing contract for the sale and purchase of products
of this Industry, nor induce, attempt to induce, or assist a party to
break an existing contract for the sale of any products of this Industry.
2. Commercial Bribery.-Offer, give, or pay money or anything of
value to anyone in order to induce the sale, purchase, or use of the
products of this Industry.
3. Defamation of Competitors.-Wilfully make, cause, or permit to
be made or published, any false statements or misrepresentations of
or concerning the business, policies, methods, or products of a com-
4. Enticing Employees.-Employ or entice employees of a compet-
itor with the purpose and effect of unduly hampering, injuring, or
embarrassing said competitor.
5. Piracy of Trade Marks.-Imitate trade marks, trade names,
slogans, or other marks of identification of another member of the
6. False Advertising.-Make, cause, or permit to be made or pub-
lished any false, untrue, or deceptive statement by way of advertising
or otherwise, concerning any grade, quality, substance, character,
origin, or preparation of any product of this Industry.
7. Misbranding.-Falsely mark or brand packages or products of
this Industry, for the purpose or with the effect of misleading or
deceiving purchasers or others with respect to quality, quantity,
character, grade, or substance thereof.
8. False Invoicing.-Withhold from or insert in invoice facts which
would make the invoice a false record wholly or in part of the transac-
tion in question, or make any arrangement which would contemplate
payment or settlement contrary to the face of the invoice.
9. Post-Date or Pre-Date Contract or Invoice.-Post-date or pre-date
contracts or invoices covering products of this Industry.
10. Guaranty Against Price Decline.-Guarantee against price de-
11. Secret Rebates.-Pay or allow secretly, rebates, refunds, com-
missions or discounts, whether in the form of money or otherwise,
12. Requirement Contracts.--Accept requirement contracts. All
contracts or orders shall be for a definite yardage with not more than
a plus or minus tolerance of 10%, and for deliveries within a definite
13. Disposition of Non-Prime Materials.--Sell seconds, pound
goods, scrap, slow-moving stock, etc., domestically, below his mini-
mum price for prime quality in excess of 5% by volume of his sales
in any three (3) months. If any manufacturer has an accumulation
of more than 5% of such goods, such case shall be referred to the
Institute for equitable disposition. All such non-prime material to
be plainly described on tags, in acknowledgments of orders, and in
14. Advertising Allowances.-Make any advertising allowances,
directly or indirectly, to any person, or offer free advertising to induce
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