For sale by the Superimtendent of Documents, Washington, D.C. - Price 5 cents
Registry No. 299--2--18
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
2. Letter of
GOVERNMENT PRINTING OFFICE
WASHIINGTON : 1933
UNIVERSITY OF FLORIDA
3 1262 08486 7653
raypaureu teae rio. 157
AS APPROVED ON DECEMBER 15, 1933
This publication is for sale by te Super-intendent of Doe~nments, Governmaent
Printing -Of~e, Washgin~gton D.CL, am ~by district orffices of the Rareemu of
Foreign and Domestic Commerce.
DISTRICT OUFFICEB OF THE DPEPAETM#ENT OF COMMECE
Atlanta, Ga.: 504 Post Office Buildinga.
Birmuingham, Ala~.: 257 Fedecal Building.
Boston, M~ass. : 1801 Custombouse.
Bu~fflo, N~.Y,: Chamber of Commerce Building.
Charleston, S.C.: C'hamber of Commerce Building.
Chic~ago, Ill.: Suite 1706, 201 North'Wells Street.
Clevecland, Ohio: Chamber of Commerce..
Dallals, Tex.: Chamber of Comnmer~ce Building.
Detroit, M\ich.: 2213 First 'a~tional Banki Building.
Houston, Tex.: Chamber of Camijne~rce Building.
Indlinuapolis, Ind.: Champber of Comn-merce Building.
Jackbsonville, Fla.: Chamtber .f Comm~erce Building.
Kiansas C'ity, M1o.: 1028 Bal~timore Avenue.
Los Ang~eles, Calif.: 1163 Sourth Eroadw~ay.
Louisville, Kiy.: 408 Federal Enikli~ng.
Mlemphis, Tenn.: 229 Federal Buildling..
Mlinneapolis, Muinl.: 213 Fedlerl Building.
New O~rleans, La.: Room 225-A, Customhouse.
'ew York2, N.Y.; 7 34 Customhouse.
Norfolk, Va.: 400 East Plume Street.
Philadelphin, Pa.: 033 Comimercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.; 215i New Post Office Building.
St., Louis, Mro.: 506 Olive Street.
San Fraurisco, Calif.: 310 Custom;,ouse.
Seattle, Wash.: 800 Federal Building.
Approved Code No. 157
CODE OF FAIR COMPETITION
HAIR CLOTH MANUFACTURING INDUSTRY
As Approved on December 15, 1933
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 my approval of a Code
of Fair Competition for the Hair Cloth Manufacturing Industry,
and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition, together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said act and that thle requirements of clauses
(1) and (2) of subsection (a) of section 3 of t~he said act have been
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the N~ational Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Huan S. JOHNSON,
THE VHTTE HOUSE,
December 15, 1933.
26707* 244--157 33
DECEMrBER 1, 1.938.
The Wthite House.
SmR: This is a report on the hearing of the Code of Fair Comn-
pet~ition for the Hair Cloth Manufacturing Industry.
The hearing was conducted in accordance with the provisions
of the Nationa Industrial Recovery Act in the North Room of the
M~ayflower Hotel in W;ashington, D.C., on November 17T, 1933.
Every person who filed a request for an appearance was freely heard
in public and all statutory and regulatory requirements were comn-
The Code which is attached was presented by duly qualified and
authorized representatives of the above industry, complying with
the statutory requirements, as representing 931,r percPent of the
The industry consists of eleven concerns, wrho, with the exception
of one small plant, are members of the Association. The industry
has invested capital of around two million dollars and in normal
years has a sales volume of about four million dollars. It is esti-
mated that the sales volm~le for 1933 will be about one million dol-
lars. There are approximately 400 employees in the industry. The
increase in the number of employees since July 1, 19;33, has been
about 10 percent and the increase in wages about 20 percent.
nisund oF PROVISIONS OF THE CODE
The Code provides for a minimum wage of $17.00 per week for
forty hours of labor. Shipping, receiving, storeroom employees,
firemen, and engineers are permitted to work forty-four hours per
week. )Employees on emergency maintenance or repair work will
be paid one and one third times the normal rate for hours wvorkred
over forty-four per weekr.
Watchmen are to be employed in pairs to work 36 and 48 hours
on alternate weeks, giving them an average week of forty-two hours.
Provisions have been made to prevent stretch-outs, reclassification
of employees, and the reduction of wages for the shorter week.
Prodluctive mnachinery in the indunst~ry is limited to one shift of
forty hours per weekr.
I find that:
(a) The. Code complies in all respects with the pertinent provi-
sions of Title I of the National Industrial Recovery Act., including
without limitation subsection (a) of Section 7 andc suibsection (b>) of
Section 10 thereof.
(b) The Hair Cloth M~Zanufacturers Association is truly represen-
tative of the Hair Cloth Manufacturing Indlustry. The By-Laws of
this association provide no inequitable restrictions to membership.
(c) The Code is not designed to permit monopolies or to eliminate
or oppress small enterprises, and will not operate to discriminate
against them and will tend to effectuate the policy of Title I of the
National Industrial Recovery Act'.
Accordingly! I hereby recommend t~he approval of the Code of
Fair Competition for the Hair Cloth Mlanufacturing Industry.
Hano S. JOHNSON,
HAIR CLOTH MANUFACTURING INDUSTRY
ARTICLE I- PURPOSES
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Hair Cloth Manufacturing I~ndustry, and
shall be the standard of fair competition for such industry and shall
be binding upon every member thereof.
The termn "L industry "' as used herein includes the manufacturing
of hanir-cloth products and the sale thereof by the manufacturer and
such~ branches thereof as may from time to time be included under
the provisions of this Ciode.
The term Hair Cloth Products as used her~ein includes all fab-
ries woven with horse hair.
The term Employee as used herein includes anyone enbgaged
in the industry in anyI capacity receiving compensationfohi
services, irrespectiv-e of thle nature or method of payment of such
The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
The term member of the industry as used herein includes any-
one en~gaged in the industry as abo\ve defined, either as an employer
or on his own beh~alf.
Thle terms President ", "LAct ", and Administrator as used
herein shall mean respectively the President of the United States,
the National Industrial Recovery Act, and the Administrator of
Title I of said Act..
1. No employee shall be permitted to work; in excess of forty (40)
hours in any one week or eight (8) hours in any twenty-four (24)
hour period unless otherwise specified herein.
2. The maximum hours fixed in the foregoingr section shall not
(a) Executives, office employees, supervisory staff, and outside
salesmen who receive $35.00 p~er week or more.
CODE OF FAIR COMPETITION
(b) Shipping, receiving, storeroomi employees, firemen, and engi-
neers who shall not work inl excess of forty-four (44)~ hours per
(c) Employees on emergency ma~inte~an~e or breakdown or repair
work and protection of life and property. In any such special case,
a tolerance of 10%o shall be allowed. Any hours work~~ed in excess
of forty-four (44) hours per week shall be paid for at the rate of
time and one third, and reported to the Code Author~ity every month.
(d) WVatchmen shall be employed in pairs and shall not w-orke more
thian thirty-six (36) and fortyv-eight (484) hours on alternate weeks,
or an average of forty-twfo (42) hours per week.
3. The maximum hours of labor for otlice employees receiving
less than $35.00 per week shanll be an average of forty (410) hours
per week over a six (6) week period but inl no weekr during such
period more than forty-eight (418) hours.
4. No employee shall be permitted to work for a total number of
hours in excess of the number of hours prescribed for each week
and day, whether employed by one or more employers.
5. Employers of this industry shall not operate productive ma-
chinery for mor~e than one shift of forty (40) hours pErl week.
ARTICLE ZT Y- VAES
1. No employee shall be paid at less than the rate of $17.00) per
week for forty (40) hours of work.
2. No employee shall receive for forty (40) hours of labor less
compensation than he! received or would have received as of July 1,
1933, for not exceeding fifty-four (54) hours per weekr.
3. Apprentices and learners for a period not to exceed three (r3)
months shall be paid at the rate of not. less than 80% of the mnini-
mum wage hereini provided. The, total number of apprentices and
learners employed by any employer of the industry shall not exceed
5%/ of the total number of employees employedl by such member.
4. This article establishies a miinimum rante of pay, regar~dlesis of
whether an emnployree is compensated on a time-ra~te, p~iecework, or
5. Female emiployees performing substantially the samne wTork as
male employees shall receive the same rates of pay as ma~le employee.
AnnOCLE V-TGENERAL L-~son Pnonsions
1. No person under sixteen (16) years of age shall be emiployed.
in the industry, nor anyone under eighteen (18) years of age at
operations or occupations hazardous in nature or detrimental to
health. The Code Authority shall submit to thle Administrator be-
fore January~ 1, 1934, a list of such occupations which~, upon his
approval, shall be deemed hazardous in nature or detrimental to
health within the meaning of this section. Inl any State on em-
ployer shall be deemed to have complied with the nge provision
if he shall have on file a certificate or permit duly issued by the
authority in such State empowered to issue employment or age cer-
tificates or permits, showing that thie empDloy~ee is of the required age.
2. Employees shall have the right to organize and bargain col-
lectiv~ly~ through represenltatives of their own choosing, and shall
be free from the interference or restraint, 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 pur-
pose of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking employment shall be required
as a. condition of employment to join any company union or to re-
frain from joining, orgamizmg, or assisting a labor organization of
his own choosing.
4. 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.
5. WFithin each State this Code shall not supersede any laws of
such St~ate imposing more stringent requirements on employers regu-
lating the ages of employees, wages, hours of work, or health, fire,
or general workiing conditions under this Code.
6. Emp~loyers shall not reclassify employees or duties of occupa;-
tions performed by employees so as to defeatt the purposes of the Act.
7. To prevent any improper speeding up of work (stretch-outs),
no emp~loyee in the industry shall be required to do any work in
excess of the practice as t~o the class of workl of such employee
prev-ailing on July 1, 1933, unless such incream ;s submitted to and
approved by the Administrator.
8. No member of the industry may knowingly employ as a learner
or apprentice any employee who has previously been employed in
anly plant in this industry as a learner or apprentice for more than
three (3) months. In case a learner or apprentice has not completed
the three (3) months learning period, he may be employed as a
learners or apprentice by any other employer for the balance of the
9. Each employer shall post in conspicuous places on his premises
full copies of this Code.
To further effectuate the policies of tche Act, a Code Authority is
hereby constituted to cooperate with the Administrator inl the ad-
ministration of this Code.
1. Organizationl of Code Authority.--(a) The Code Authority
shall consist of three (3) individuals, selected by the members of the
Industry, mn accordance with a fair method of selection, approved
by the Administrator, and not more than three (3) additional mem-
bers without vote (and without expense to the Industry) to repre-
sent the Admrinistrator or such groups or interests as may be agreed
(b) Each trade or industrial association directly or indirectly
participating in thle selection or activities of the Code Authority
shall : (1) Impose no inequitable restriction on membership, and (2)
submit to the Adlministr~ator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto, to-
gether with such other infor~mation aIs to mlembership, organization,
and activities as the Adlministr~ator m:1y dleem necessary to effectuate
the purposes of thle Act.
(c) Iri order that the Code Authority shall at all times be truly
representative of the industryv and in other respects comply with~ the
provisions of the Act, the Administrator may provided such hearings
as he may deem proper; and thereafter if he shall findl that the Code
Authority is not trulyr representative or doe-s not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Auuthority.
2. The Code Authority shall have! the following du~ties and powers
to the extent permitted by the Act, subjcct to thle right of the Admin-
istrator on review- to disapprove any action taken by the Code
(a) To administer and assist in the enforcement of this Code.
(b) To interpret the provisions of thiis Code and issue such rules
and regulations as may be necessary for the proper administration
of the provisions of this Code.
(c) To cooperate with the Admiinistrator as a Planning aind Fair
(d) To cooperate w-ith the Administrator in manking investigations
as to the functioning and obsevance of any provi;sions of th~is Code,
at its own instance or onl complaint byr any person affected, and to
report the same to the Administrator.
(e) To receive and adjust complaints of the alleged violation of
any of the provisions of this Code.
(~f) To receive from members of the industry, at such times as
may be prescribed, statistics covering number of employees, wag
rateks, employee enrrni~gs, hours of workr, andi such other dnto as
may be required by t.he Administrator.
(g) To obtain fromt thie members of the Industry such oth~e -tal-
tistics and~datal as may be necessary for the proper adminisiitration
of this Code, whichl information is to be collected by\ an imipartial
agent, acting in a judiciary capacity, writh~ full protection to eachz
member as to the confidential nature of the material collectedl.
3. Any interested party shall have the right of appeal to the Ad-
ministrat~or, under such rules and regulations as he mary prescribe,
in respect to any rule, regulation, or other course of action issued
or taken byg the Code Authority.
4. Members of thle Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to
participate in the selection of the members thereof by assenting- to
and complying w~ith the requirements of this Code and sustaining
their reasonable share of the expenses of its administrationn. The
reasonable share of the expenses of adlministration shall be de-
termined by the Ciode Authority, subject to rev~iew b'y the Admlin-
istrator, on t~he basis of volume of business and/or such other factors
as may be deemed equitable to be taken into considterationi.
'5. In addition to the information required to b~e submitted to the
Code Authorityv, there shall be furnished to government agencies
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of th~e Act.
ARTICLE VII--TRADE PRACTICES
1. Every employer shall use a cost-necounting system which com-
forms t~o the principles of and is at least as detailed and complete
as the uniforml andc standard method of cost accounting to be pre-:
scribed by the Code Authority and approved by the'Administrator.
Such cost-accounting~ sylstemn shall include as items of cost all direct
expenses for labor and materials and a proper allowance for over-
headl figuredl according to plant. utilization in t~he production of
products covered by thlis C~ode.
9. No member of the Industry shall sell or exchange any product
of the Industry at a price lower than his cost determined In accord-
ance with a umiforml and standard method of costing to be adopted
by the Association and approved by the Administrator.
3. Members of this Industry shall file with the Code Authority a
schedule of prices, terms, discounts, and conditions of sale for the
products of the industry within thirty (30) days after the effective
date of the Code. Such price lists may be revised only upon ~fie
(5) days' notice to the Code Authority. The Code Authority shall
immediately send copies of all price lists so filed to all members of
4. Illemnbers of the Indlustry shall not sell their products at other
prices or on other terms or conditions than set forth in their own
price list. W\1hen anymmeofheIdsrresshipiclst
any othe mbe r member of thie Industrymy revises his price list acod
ingly, to become effective on the same date as the revised price list
first filed. Nothing in this paragraph shall be interpreted to permit
the promulgation of list prices or the sale of goods at a price below
the cost of production of the member of the industry issuing the list
as provided in paragraphs one and two of this article.
5. Obsolete merchandise and merchandise that must be sold in
emnergencies may be sold at other than the price list o~r cost of the
member of the Industry, with the approval of the Code Authority.
ARTICLE VIII--ExISTICo CloMTRncTS
Where the cost of executing contracts entered into by this In-
dustry prior to June 16, 1933, is increased by the application of the
provisions of the National Industrial Recovery Act, it is equitable
and promlotive of the purposes of the Act that appropriate adjust-
ments of such contracts to reflect such increased cost be arrived at
by arbit~ral proceedings or othler~isc?, and the Code Auithority is
conetit~uted the agency. to assist in effecting such adj ustment.
AnRICLE I1C-UNiFORT TC~IDE PRACTIICES
The following practices constitute unfair methiods of competition
for members of the Industry and are prohibited:
1. The false marking or branding of any product of the industry
which has the tendency to mislead or deceive customers or prospec-
tive customers, whether as to the grade, quality, quantity, substance, i
character, nature, origin, size, finish, or preparation of any product
of the industry, or otherwise.
2. The makinga or causing or knrowingaly permittingr to be made or
published any false, materially inaccurate, or deceptive statement by
way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, cha ract'er, natuire origin, size, finish, or I
preparation of any product of thle industry, orte ic~t~redo ohittrse, l
ns, pli~cies, or services of any member of thinutyorohrie
haymg the tendency or capacity to mislead or dleceive customners or
3. Directly or ind~irctly to give or permit. to be given, or ofeir to
I give, money or anyvthinga of value to agents, employees, or represe~nta-
tives of customers or prospective customers, or to aSenrts, employees,
or representatives of competitors' customers or prospective customers,
without the knowledge of their employers or principals, as an induce-
ment to influence their employers or principals toffr purchs to inlcn
tract to purchase from the makers of such giforoeroroinune
such employers or principals to refrain from dealing or contracting
to deal with competitors.
4. Mlaliciou-sly inducing or attempting to induce? th~e. breach of
an existing oral or written contract between a competitor and his
customIers or source of supply, or interfering with or obstructing
the performance of any such contractual duties or services.
; 5. No member of the industry shall secretly offer or otherwise
makle any payment or allowance of a rebate, refund, commission,
Credit, unearned discount, or excess allowance, whether in the form
of money or othlerwise, nor shall a. member secretly, or otherwise
extend to any customer any special service or. 1rivilegre not extended
to all customers of the same class. This provision shall not bel inter-
pated to prohibit the adjustment of legitimate claims.
6. The offering or giving of prizes, premiums, or gifts in connec-
tion with the sale of products, or as an inducement thereto, by anly
scheme which involves lottery, misrepresentations, or fr~aud.
7. Thle defamation of competitors by falsely imlputing to them
dishonorable conduct, inability to performl contracts, questionable
credit standing, or by other false representations or by the false
disparagemlent of the grade or quality of their goods.
8. The imitation of trade m~arks, trade names, slogans, dlesigns,~
styles, brands, or other marks of identification of competitors having
the tendency and capacity to deceive purchasers or prospective pur-
9. Canceling in whole or in part, or per~mitting the cancellation
in whole or1 mn part, of any contract of sales of any product,? except
for a fair, pionsideration.
10. Making or giving to any purchaser of any product any guar-~
anty or protection in any form against decline in the m-Larket price
of such product.
11. Stating in the invoice of any product as thice ate thereof a date
later than the date of t~he shipment of such product, or' inlcluding mn
any invoice any product shipped on a date earlier thian the date of
12. Making any sale or contract. of sale of any product under any
description which does not fully describe such product in terms cus-
tomanrily used in the Industry.
13. Rendering to any pur~chaser of any product in or in connee-
tion with the sale of such product any service, unless fair compensa-
tion for such service shall be paid by such purchaser.
14. Shipping products on consignment, except insofar as it is neces-
sar~y to complete arrangements existing as of the effective date of the
Code, which arrangement shall be reported in writing to the God~:~;
Authority. No member of the Industry shall deliver the pr~oductM'-
thereof on consignment except to an aflihated company of such mem-l'
ber. An affiliated company shall mean a company in which a menWrji ::
ber of the Industry has a voting control through the record or equi.
table title of the voting stock thereof, or has control of such coni.
panyv m any other manner.
15. The making of false statements or reports, written or oral, re~
quired pursuant to any of the provisions of this Code or any resoiltd~-
tion duly adopted by the Code Authority.
ARTCLE X MODIFICATION
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 National Indust~rish~:'l
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, but without limitation, to the right of the:
President to cancel or modify his approval of this Code or any con-
ditions imposed by him upon his approval thereof.
2. After due notice and hearing this Code, except as to provisions
required by the Act, may be modified on the basis of experience or;
changes in circumstances; such modifications shall be based on the
recommendation of the Code Authority or of any interested party
or group or on the Administrator's own initiative and shall become~~i
effective on approval by the President. ";l
ARTICLE XI-MONOoPOSI ES, E-r
No provisions of this Code shall be so applied as to permit mono~"l:
olies or monopolistic practices, or to eliminate, oppress, or discrims.J
nate against small enterprises.
ARTICLE XII--EFFECTIVE DATE
This Code shall become effective on the second Monday after thl~b
date of its approval by the President.
AipnproaS Code Na''157.
a egistry No. 299-218.