For sale by the Balperintendent of Documents. Washington, D.C. - Price 5 centa
Registry No. 232--1--03
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
HAIR AND JUTE FELT
AS APPROVED ON OCTOBER 31, 1933
U.3 fp. : r~prEDOU PART
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
UNIVERSITY OF FLORIDA
3 1262 08486 7562
This publication is for sale by the Superintendent of Documents, Government
Printing Office. Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMM~ERCE
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CODE OF FATH COMPETITION FOR THIE HiarR AND UDTE FEL.T INDUSTRY
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the N;ational Industrial
Recovery Act, approved June 16, 1933, for miy approval of a Code of
Fair Competition for the Hair and Jut~e Felt Industry,,, :e,~,, and hearings
having been held thereon and the Aldministratorhaigrnre
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 com-
petition complies in all respects with the pertinent provisions of
title I of said act and that the requirements of~ clauses (1) and (2) of
subsection (a) of section 3 of the said act have been met:
NOWV, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report., recommiendationss and
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D. ~ROOSEV'ELT.
THE \fHITE 110USE,
October 31, 1933.
Approval recommended :
HUGH S. JoHNSON,
N ATI ON AL RECOV ERYT AD MI NISTRATION
To the PRESIDENT.
This is the report on the application for, andS, publc hring on,
a Code of Fair Competition for the Hair and Jt etIdsr
as proposed by the Hair and Jute Felt Manufacturers' Association.
The hearing was conducted in Washington, D.C., on September
29, 1933. Every person who requested an appearance was freely
heard in accordance with statutory and regulatory requirements.
The code was presented by duly qlualified and authorized representa-
tives of the industry complying with the statutory requirements as
representing 90 percent of the volume of business and 83.33 percent
of the number of establishments.
The following exhibits are included and attached:
1. Code as finally proposed.
2. Notice of hearing.
3. Statement of procedure.
4. Statistical analysis by Research and ]Planning Dlivision.
5. Transcript of record.
6. Report. of Deputy.
7. List of witnesses.
8. Constitution and bylaws of the Hair and Jute Felt Manu-
II. DESCRIPTION OF TNDUSTRY
The Hair and Jute Felt Industry is one of the small but distinct
divisions of the textile field.
At the present time this industry is composed of 17 members with
a production of about $4,500.000, although the normal production
would more likely approximate $9,000,000 annually. These 17 firms
now employ in the neighborhood of 1,621 persons.
Although the products are fabricated from the same raw materials
usedl by the textile industry generally, the productive machinery,
well as the competition, are different. Certain items are made b
the punching process while others are made by hardening machines,
or, again, by a combination of both. The chief competition is with
cork, paper, wood fibers, straw, and sea weed as insulation materials,
withl cork and paper in the gun-wad field, with rubber- and celotex
for autom-otive urse, and with paper in the field of carpet lining.
Only to a very limited extent is there any competition with cotton,
wool, silk, rayon. or other textile fabrics.
Seasonal trends and the production schledules of other industries
exert considerable influence. For example, gun waF~dding reaches its
peak during the early fall, while products for the nuitomiobile indus-
try naturally follow the trend of ouitpuit in that industry.
At firs~t. glance it would~ seem tha7t because~ hair andl jute produlc17ts
are of a nonperishable nature a mocre even aniinu production could
be obtained by manullfacturin g in anticipation of dlemand. There
are several factors that make this course imipractical. The raw nma-
terials, as well as the finished produlcts, are of an extremely bulky
nature and w~ouldl necessitate large storage facilities, which the
industry does not. possess and~ would not be julstified in building.
Also, thme raw materials ar~e subject to price fluctuations that would
entail the danger of severe losses if sufficient inventories of finished
or unfinishedl goods were stock~ed.
Because of thmis, firms reprlesent~ing 9J5 percent of the productive
capacity of the i ndlustry' we~re opposed to any limitation of mnachinery~a
hour andclaied tat ay restriction w~ouldl work a severe hrd
shi p et~her throulghl loss of business or by' the necessiit~y for further
A group in the inidustryl, small in both number and volume, wished
to have productive mnachinery limited to twro shifts of forty hours
per wFeek, which was not granted because it was felt that such a
restriction wFoul!d renet. to thme d~etrimlent of the industry and the
It is proper to point ouit that in normal times an important part of
thme Hair and Juite Felt Industry's p~rodlucts are used- by the building
trades for soundproofing andt inisulation purposes, as well as by the
builders of railroad passengers alnd freight earls. Both of these in-
dustries hlave been at low ebb for the Inst few years, but wBlhen the
expectedl uptur~n in building construction and railroad replacement
occurs, hair and jute felt manufacturers would be seriously handi-
capped in supplying the requirements of these trades if their ma-
chinery was hedgerrd about with restrictions.
Because of the entire lackl of any1 comlpetition with other branches
of the textile indlustry, it is entirely appropriate that the Hair and
Juite e I ndustr sheddILL bl'IIIe allowed to operate machinery 011 an
III. LAncn Pnovrsiohns
The industry proposes to pay a minimum w~age of 35& per hour,
with a maximuml ojf 40 hours per week for labor. A tolerance ofl
10 percent above this figure will be allowedl for certain employees
such as hair washers, dr~yelrs, and extractor~s, who will receive time
and one third overtime for wor~k in excess of 40 hours.
This leeway was to avoid any possible spoilage of raw material,
pa2rticullarly hair, during prepar~atory processes. After the hair is
reevdfrmtetanriti ahead once in the wet state,
mus becariedthrug oter rocsse unildried and baled, be-
cause if left wet, deterioration and spoilage would result.
The provisions for administration of this code are capable of pro-
viding the NRA and the Hair and Jute Felt Industry with suffi-
cient data to make recommendations for the elimination of certain
provisions of the code as herewith presented and/or the addition of
further provisions to this code which would be beneficial to the indus-
try as a whole.
I find that the code complies in all respects with the pertinent
provisions of title I of the National Industrial Recovery Act, includ-
mg,' without limitation, subsection (a) of Section 7? and subsection
b)of Section 10 thereof.
Tihe Hair and Jute Felt M\anufacturers' Association is truly repre-
sentative of the Hair and Jute Felt Industry and the bylaws of this
association provide no inequitable restrictions to membershi~p.d
Accordingly I hereby recommend the approval of theCoeo
F~air Competition for the Hair and Jute Felt Industry.
Hoon S. JoHNson,
CODE OF FAIR COMPETITION FOR THE HAIR AND JUTCE
To effectuate the policies of Title I of the National Industrial
Recovery Act., the following provisions are established~l as a Code of
Fair Competition for the Hair and Jute Felt Indtustry and shall be
the standard of fair competition for such industry and shall be
binding upon every member thereof.
ARTICLE II DEFINITIONS
(a) The term "' industry "', a~s used herein, includes the mannufac-
ture of felt principally from hair and.-'or jute by the hardlening
and/'or punching processes.
(b~) The terml employee ", as used herein, includes anyone
engaged in thle indlustryI in any capacity receiving comnpensation for
his services, irrespective of the nature or method of payment of such
(c) The term employer ", as ulsed herein, includes anyone by
whom any such employee is compensated or employed.
(d) The term "L member of the industry ", as usedl herein, includes
anyone engaged in the industry, as above defined, either as an
emiployer or on his own behalf.
(e) The term signatory of the code ", as usedf herein, mneans
any member of the industry who shall voluntarily agree in writing
as prescribed in Article VI, Section (c) hereof.
(f) The term "i division "', as used herein, refers to the several parts
of the hair and jute felt industry which a~re (or mqay be) established.
(g) The terms "i President ", L"Act "!, and 'Administrator "1, as used
herein, shall mean r~espectivelry t~he President. of the United States,
the National Industrial Recovery Act., and the Administrator of
ARTICLE 111- VIAGES
(a) No employee shall be paid at less than the rate of thirty-five,
(35) cents per hour.
(b) Hourly wage rates for those receiving more than t~he mnini-
mums herein prescribed shall be adjusted to preserve differentials
existing on M~arch 1, 1933.
(c) This Article establishes a guaranteed minimum rate of pay,
regardless of whether the employee is compensated on a time or piece
ARTICLE IVT-HouRs or LABOR
(a) No employee, except those in a managerial or executive capac-
%I ity, who receives more than $35.00 per week shlall be permlitted to
workr in excess of 40 hours in any one week, provided that a ten per-
cent additional allowance in hours may be permitted in the case of
repair-shop crews, firemen, engineers, electricians, outside crews,
watchmen, cleaners, harir washers, dryers, extractors, and balers.
(b) The maximum hours fix~ed in thle foregaoing section shall not
apply to any employee on emergency maintenance or emergency re-
pair work involving breakdowns or protection of life or property.
(c) A~ny emergency time shall be reported monthly to the Na-
tional Control Committee hereinafter provided.
(d) The rate of pay for time in excess of forty (40) hours shall
be one and one third (lys~) times the regular rate of pay.
ARTICLE tr-CHH.D LABOR
Employers in the hairi and jute felt industry shall not employ
any person under the age of sixteen years.
ARTICLE VI -ADMIINUISTRATIONh
(a) to ef~fectuate further the policies of the Act, a National Control
Committee is herebyv designated to cooperate with the Administrator
as a Planning and Fair Practice Agency for the Industry. This
Committee shall consist of five (5) representatives of the industry
elected b~y a fair method of selection, to be approved by the Admin-
istrator and up to three (3) members without v'ote may be aIppointed
by thle Administrator. Such agency may present to the Administra-
`tor recommendations for the modification of the provisions of this
Code, which will tend to effectuate the operation thereof and the
policies of the Act. Such recommendations, when approved by the
Admiinistrator, after such notice and hearing as he shall deem
proper, shall have the same force and effect as if originally incor-
porated in and made a part of this Code.
(b) Such agency is also set up to cooperate with the Admin-
istrator in making investigations as to the functioning and obser-
vance of any provisions of this Code, at its own instance or on com-
plaint byv any person affected, and to report the same to the Acdmin-
(c) M~embers of the industry who are complying with the require-
ments of the Code and who agree in writing either individually, or
through trade associations of which they are members, to abide by
the requirements of the Code, and to pay their reasonable share o
the expense of administration thereof shall be entitled to the benefits
of the activities of the National Control Ciommittee and to partici-
pate in the selection of the members thereof.
(d) The reasonable share of the expense of administration of the
Code to be borne by the sigrnator~ies of the Code shall be determined
by th~e National Cont~rol Committee, subject t~o review by the Ad-
ministrator on the basis of volume of business, and,/or such other
factors as ma~y be deemed equitable to be taken into consideration.
(e) W\ith a view of keepingf the President inf~ormecd as to the
observannce or nonobservance of this Code of Fair Competition,
and as to whether the industry is taking appropriate steps t~o effectu-
ate the declared policy of the Act, members of the industry shall
furnish to the National Control Committee througIh its nothorized
accountant, in such form, and at such intervals as it mIay prescribe,
subject to the approval of the Administrat~or, duly certifiedt reports
containing such information, reasonably pertinent to the effectua-
Stion of the purposes of this Code, as mnay be required by the Adminin-
istrrator or by the National Conltrol Commnittee subject to> the app~roval
of the Admmistrator.
Such information or copies thereof shall be furnished to the
Administrator upon his request.
Totals and subtotals only shall be published, and shall be fur-
nished to all members of the industry alike.
(f) In addition to the information required to be submitted to
the National Control Comnmittee, there shall be furnished to Govern-
ment agencies such statistical information as the Administrator may
deem necessary for thle purposes recited in Section 3 (az) of the Arct.
(g) The National Control Comlmit~tee shall require that all meka-
bers of the industry file lists of prices and terms with thre Secretaryy
of the H~air and Jute Felt M~anufacturers Association. Changes in
price lists shall be with the Secretary at least forty-eight (48) hours
before becoming effective.
(h) The National Control Committ~ee shall secure current infor-
mation concerning the competition in domestic markets of imported
hair and/or jute felt products, and if it shall find that such products
are being imported into the: United States in substantial quantities or
increasing ratio to domestic production and on such terms or under*
C'such conditions as to render ineffective or seriously to endanger the
maintenance of this Code, it shall complain to the President pursuant
to the provisions of Section 3 (e) of the Act and petition for suitable
restrictions on the importation of such hair and/or jute felt products.
(i) Eachl trade or industrial association directly or indirectly par-
ticipat~ingr in the selection or activitiess of the National Control Com-
mittee shall: (1) Imnpose no inequitable restrictions on membership,
and (2) submit to the Admiinistrator true copies of its articles of
association,, bylaws, regulations, and any amendments when made
thereto, together with such other information as to membersh-ip, or-
ganization, and activities as the Ad~ministrator may deem necessary
to effectuate the purposes of the Act.
(j) In order that the National Control Commit~tee shall at all times
be truly representative of the industry and in other respects comply
with the provisions of the Act, the Adbministrator may provide such
hearings as he may deem proper; and thereafter if he ~shll find that
the National Control Committee is not truly representative or does
not in other respects comlply w~ith the provisions of the Act, mnay
require an appropriate modification in the method of selection of the
National Control Comlmittee.
ARrlCLE V11--THADE PRACTICES
The following practices shall constitute unfair methods of compe-
tition for the industry, and are prohibited:
(a) Sales belowu rost.--The selling or offering for sale of hair
and/or jute felt products at prices below cost. of production, except:
(1) to meet competition, not instigatedl directly orr indir~ectly by the
party desiring t~o meet such competition, and (2) to meet competi-
tion in violation of this rule concerning which he has made com-
plaint to the National Control Committee or any authorized agency
thereof, but only pending action thereon. This provision shaUl not
be effective until the Administrator shall approve a method of cost
accounting to be recommended by the National Control Committee.
(b) Sales belowr Published Prices.---Selling at prices below or
on terms more favorable than those filed with the National Control
(c) Sales of Nonstand~ard Gr~ades or Classiffeations.-The selling
or offering for sale of nonstandard grades or classifications of hair
and/or jute felt for the purpose of evasion of the above Section (b).
Standards shall be established by the National Control Committee,
subject to approval by the Administrator. This shall not be inter-
preted so as to prohibit the introduction or sale of any new types of
hair and/or jute felt.
(dl) False Mairk~~inzg or Branl.dling.--The false marking or brandinrr
of any product of the industry which has the tendency to mislea$
or deceive customers or prospective customers, whether as to the
grade, quality, quantity, substance, character, nature, origin, size, fin-
ish, or preparation of any product of t~he industry, or otherwise.
(e) Secret Rebates.--The secret payment or allowance of rebates,
refunds, commissions, credits, or unearned discounts whether in the
form of money, or otherwise, or the secret extension to certain pur-
chasers of special services or privileges not extended to all purchasers
on like terms and conditions.
(f) Advertisin~g.--The granting to a customer of any advertising
allowance of any nature or in any form.
(g) Subsidies.--The splitting: or otherwise sharing by salesmen
or other employees of their commissions or compensation with any
present or prospective customer or customers' employees.
(h) MVerchandising S~tandards--
(1) Wreight of Merchandise.--To intentionally ship any customer
merchandise which weighs substantially more or less than the average
published weight. A tolerancer, of T26" over or under the specified
weight will be allowed, but this must not be by design. On all price
lists, advertising matter, etc., the average weight of each product
shall be given mn one weight only, and not a range of weights.
(23) Second~s.--To protect the public against misleading and defec-
tive merchandise, seconds of carpet and rug lining shall not be
offered for sale. Seconds, as used herein, connotes merchandise of
the same specification as regularly listed, which are sold at a con-
cession because of defect.
(3) Discontinued Lines.--Any member of the industry may offer
up to 10,000 square yards per calendar year of discontinued mer-
chandise below cost or published price list; provided he advises the
Executive Secretary, who shall notify all signatories of the Code,
the nature, .quantity, and price of the merchandise thus offered.
( i) In voici ngs.--Fictit ious i nvoici ng of merchand ise and the ship-
ment of merchandise, which weighs substantially more or substan-
'lially less than the published weight.
The omission from an invoice of any material item pertaining to
the sale such as allowance of overriding discount payable at some
futu re d ate.
All goods shipped by a manufacturer to or for customers carried
on his own books shall be fully invoiced in the namne of the customer
to whom or for whom the goods are shipped and by whomn payment
will be made. to the manufacturer. No manufacturer shall invoice
any customer for produtes other than those actually shippedl against
ARTICLE 7111- GENERAL PROVISIONS
(a) No provisions of this Code shall be so applied as to promote
monopolies or monopolistic practices or to eliminate, oppress, or
discriminate against small enterprises.
(b) Emiployees shall have the right, to organize anld bargain col-
lectively through representatives of their own choosing, and shall be
free from all interference, restraint, or coercion of emlployrers of
labor, or their agents, in the designation of such representatives or
in the self-organization or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
(c) No employee and no one seeking emlploymnent shall be~ required
as a condition of employment to join any comnpany union or to re.-
frain,,.. frmjoining., oran.izing,! or assisting a labor organization of
his own choosing ; and
(d) Employ~ers shall comply with the maximum hours of labor
minimum rAtes of pay, and other condlitions of employment approved
or prescribed by the President of the Unitedl States.
(e) This Code and all provisions thereof are expressly mnade sub-
ject to the right of the President, in necordance with the provisions
of Subsection (b) of Section 10 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, andl spe-
cifically but. without limitation to the right of the President to cancel
or modlify his approval of this Code or any conditions imlposedl by
himi upon his approval thereof.
(f) Suchi of the provisions of this Code as are not required to be
included therein by the National Indtustrial Recovery Act mayr, with
the approval of the Pr~esident, be modified or eliminated as chalnges
in circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code or
additional codes wFill be submlit~ted for the approval of the President
to prevent unfair competition in price and other unfair and destruc-
tive competitive practices and to effectuazte the other purposes and
policies of Title I of the National Industrial Recovery Act consistent
with the provisions hereof.
(g) W7ithin each State this Code shall not supersedle any law~s of
such State imposing more stringent requirements on employers regu
latinga the age of employees, wages, hours of work, or health,fie
or general working conditions than under this Codle.
(h) Each employer shall post in conspicuous places full copies of
ARTICLE IX-EFFECTIVE DBrE
This Code shall become effective on the second Mfondayv after its
approval by the Pr~esident.