Amendment to code of fair competition for the wool textile industry


Material Information

Amendment to code of fair competition for the wool textile industry as approved on January 23, 1934
Portion of title:
Wool textile industry
Physical Description:
9 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D. C
Publication Date:


Subjects / Keywords:
Wool industry -- Law and legislation -- United States   ( lcsh )
Textile industry -- Law and legislation -- United States   ( lcsh )
Textile fabrics -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 286-04."
General Note:
"Approved Code No. 3--Amendment No. 1."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 005024663
oclc - 63654385
System ID:

Full Text








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gr ale by the Superwbtudnst of Documeats, Washington. D.C. - Price 5 conta

Approved Code No. 3-Amendment No. 1

Registry No. 286-04

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
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Approved Code No. 3-Amendment No. 1



As Approved on January 23, 1934




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 approval of amendments
to a Code of Fair Competition for the Wool Textile Industry, and
hearings having been duly held thereon and the annexed report on
said amendments, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
resident, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise: do hereby incorporate, by reference, said
annexed report and do find that said amendments and the Code as
constituted after being amended comply in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act, and do hereby order that said amendments be,
and they are hereby, approved, and that the previous approval of said
Code is hereby modified to include an approval of said Code in its
entirety as amended,
Provided, however, that the Administrator may appoint a repre-
sentative or representatives upon each of the Sub-Code Authorities
created under Article XII of said amendments, and
Provided, further, that if the Administrator shall determine that
any action of a Code Authority or any agency thereof is unfair or
35370--313-115-34 (1)

unjust or contrary to the public interest, the Administrator may re-
quire that such action be suspended for a period of not to exceed
thirty (30) days to afford an opportunity for investigation of the
merits of such action and further consideration by such Code
Authority or agency pending final action, which shall be taken only
upon approval by the Administrator.
These amendments shall become effective ten (10) days after date
Administrator for Industarial Recovery.
Approval recommended:
Division Adrrinistrator.
January 23, 1934.

The White Hou.e.
SIR: This is a report. on the Hearing of the Amendments to the
Code of Fair Competition for the Wool Textile Industry.
The- hearing was held in the Carlton Hotel, Washington, D.C.,
on December 8, 1933.
The Amendments were presented by duly qualified and author-
ized representatives of the above industry, complying with the stat-
utory requirements, as represented by fully 80 percent of the wool
textile machinery including both looms and spindles.
The amendments proposed may be classified into four parts:
The definition in the original code is amended to make the code
all inclusive of the various divisions of the wool textile industry.
The original code contained no method of assessing employer
for any of the expenses. Consequently, a provision is proposed so
that employers may be assessed within the limits allowed by the
Recovery Act.
A provision limiting the hours of office employees is proposed
by changing the original Article III.

In the Executive Order dated July 26, there appeared a condition
as follows:
"(1) To effectuate further the policies of the Act, a Wool Textile
Industry Committee be created to cooperate with the Adminis-
trator as a Planning and Fair Practice agency for the Wool Textile
Industry, which Committee shall consist of five representatives of
the Wool Textile Industry elected by a fair method of selection,
to be approved by the Administrator, and three members without
vote appointed by the Administrator."
The amendments attached hereto contain administrative provi-
sions allowing the various subdivisions of the wool textile industry
to operate in the most convenient and constructive manner.
All divisions of the wool textile industry are included in this code
but it is recognized that the problems of some of the branches of the
industry are not comparable with the problems of other branches.
Consequently, subcode authorities have been created to care for the
individual problems of each of the well-defined branches of the
The amendments propose several fair trade practices which are
applicable to all of the divisions of the industry. At a later date
the subcode authorities will propose fair trade practices which shall
apply only to their division.


The wool and worsted manufacturers have been operating under
the rulps of the American Arbitration Association for several years
and are now incorporating arbitration provisions in their code, both
for arbitrating disputes between buyers and sellers and disputes be-
tween themselves concerning the rules and regulations that appear in
the code.

The Deputy Administrator in his final report to me on said amend-
ments to said Code having found as herein set forth and on the basis
of all the proceedings in this matter:
I find that:
(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action among trade groups, by inducing and main-
taining united action of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the pres-
ent productive capacity of industries, by avoiding undue restriction
of production (except as may be temporarily required), by increasing
the consumption of industrial and agricultural products through in-
creasing purchasing power, by reducing and relieving unemploy-
ment, by improving standards of labor, and by otherwise rehabilitat-
ing industry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) Section 7, and Sub-
section (b) of Section 10 thereof.
(c) The National Association of Wool Manufacturers was and
is an industrial association truly representative of the aforesaid
Industry and that said association imposed and imposes no inequi-
table restrictions on admission to membership therein and has applied
for or consents to this amendment.
(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendments and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not op-
erate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, these Amendments have been approved.
A administrator.
JANUARY 23, 1934.


Pursuant to Article X of the Code of Fair Competition for the
Wool Textile Industry, approved by the President July 26, 1933,
said Code is hereby amended in the following manner:


The first paragraph of Article I shall be modified by deleting the
word "sales" from the words worsted sales yarn (Bradford
System)", "worsted sales yarn (French System)". and "carded
sales yarn "; by adding after the words "carded sales yarn the
words "not including carpet or underwear yarn "; and by adding
after the word carbonizingg" the words topmakers, the sale of
fabrics in the piece by members of the Industry and or their
agents "; so that the whole paragraph shall read:
"I. Definitions.-As used herein the term wool textile industry'
shall include the following branches: Manufacture of worsted men's
wear, worsted women's wear, carded men's wear, carded women's
wear, blankets, cotton warp fabrics, reworked wool, knitted woolen
goods, worsted yarn (Bradford System), worsted yarn (French
System), carded yarn not including carpet or underwear yarn, and
combing, wool scouring and carbonizing, top-makers, the sale of
fabrics in the piece by the members of the Industry and or their
agents, and such other related branches as may from time to time
be included under the provisions of this Code."


The first paragraph of Article III shall be modified by substitut-
ing for the word office the words office employees receiving more
than $30.00 per week and by adding at the end of said paragraph
the sentence: No office employee receiving $30.00 a week or less
shall work over forty-eight hours in any one week or more than
forty hours per week averaged over a thirteen-week period "; so
that the whole paragraph shall read:
Hours of Labor.-On and after the effective date no employer
shall employ any employee in. excess of forty hours per week, this,
however, not to apply to hours of labor for repair-shop crews,
engineers, electricians, firemen, office employees receiving more than
$30.00 per week, sales and supervisory staff, shipping, watching, and

outside crews. No office employee receiving $30.00 a week or less
shall work over forty-eight hours in any one week or more than
forty hours per week averaged over a thirteen-week period."


Article VI shall be amended by adding at the end thereof the
following paragraph:
"The Association may assess any employer, at such intervals as
the Association shall determine, his pro-rata share (subject to ap-
proval of the Administrator) of the expense of collecting and re-
ceiving such reports and of compiling and forwarding to the Presi-
dent the substance thereof."

The following Articles shall be added to and made a part of the

SSECTION 1. Designation of Divis;'ons of the Industry.-Every per-
son engaged in the Wool Textile Industry, who manufactures or sells
any product or engages in any activity as listed in Schedule 1 under
a designated Division of the Industry shall, as to each product or
activity, -operate under the rules formulated for the Division into
which that product or activity falls, and shall be a member of that
Division. The Board of Directors of the National Association of
Wool Manufacturers may, from time to time, amend Schedule 1 to
consolidate Divisions, create new Divisions, subdivide old Divisions,
or add new products or activities to old Divisions to the extent that
changes in circumstances require such amendment. Any such amend-
ment shall be subject to appeal to the Code Authority by an inter-
ested person, and shall in no event be retroactive.
SEC. 2. Organization and Constitution of Code Authority and
Sub-Code A authorities:
"(a) In accordance with the Executive Order of July 26, 1933, a
Wool Textile Industry Committee (hereinafter called the 'Code
Authority ') is hereby constituted to cooperate with the Administra-
tor in the administration of this Code. The Code Authority shall
consist of six (6) representatives of the Industry elected by a fair
method of selection, to be approved by the Administrator, and not
more than three (3) members without vote to be appointed by the
Administrator and to serve without expense to the Industry. Upon
the election of the six members by the Industry, as provided above,
the Code Authority shall be duly constituted and shall function as
herein set forth, whether or not the Administrator shall have
appointed the additional members.
"(b) The Code Authority shall adopt its own rules and/or meth-
ods of procedure and may appoint such officers or agencies as it may
deem necessary properly to carry out its duties in the administra-
tion of this Code. It may delegate to a special Sub-Code Authority
of any Division of the Industry listed in Schedule 1 its powers and

duties in the administration of all articles of this Code or supple-
mentary codes relating to trade practices of that Division. The
Sub-Code Authority for each Division of the Industry ,hall consist
of not less than three (3) members and or representatives of that
Division elected by majority vote of the members of such Division
and to serve for such periods as the Division may dete nine.
"(c) The members of each Division or Sub-Division may adopt
their own rules and, or methods of procedure, not iinciu,iistent with
the Act or with the Code or with the Bylaws of the National Asso-
ciation of Wool Manufacturers. Members of each Division or Sub-
Division may propose rules of practice or of merchandising relating
to uniform terms, standard sales contracts, sales below co-t, the filing
of prices, competitive practices, etc., for their Division or Sub-
Division, amplifying for that Division or Sub-Division the provisions
of Article XIII hereof in order to promote fair competition; sub-
ject to.the approval of the Administrator, such rules of practice and
such merchandising rules, when approved by three-fourth vote of
the members of the Division or Sub-Division affected, by the Sub-
Code Authority of that Division, and by the Code Authority, shall
be binding upon all members of that Division. Clhnges may be
made in any such rules in the same manner in which the original
rules were adopted.
"(d) For the purposes of this Section, the three quarter vote may
be either: (1) three quarters of those voting at a meeting of mem-
bers of the Division or Sub-Division duly called for consideration
of the rules; or (2) three quarters of those voting on mailed ballots
sent to addresses of the members of the.Division or Sub-Division at
least ten days prior to the day on which such ballots are to be
counted. No action by mail ballot shall be binding unless affirma-
tive ballots are received from at least one third of those to whom
ballots are sent.
SEC. 3. Appeals:
"(a) Any interested party shall have the right of complaint to
the Code Authority or the Sub-Code Authority, and shall be given a
prompt hearing and decision thereon, under the rules of procedure
of such body, in respect to the fairness of any rule of practice of
merchandising adopted for a Division or Sub-Division of which he is
a member.
"(b) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as the Adminis-
trator shall prescribe in respect to any decision, regulation, or
order made by the Code Authority or Sub-Code Authority under
the foregoing paragraph.*

For the purposes of this Code, the following shall constitute
unfair trade practices forbidden to all members of the Industry:
1. Selling at terms different from those prescribed by the rules
of the Division or Sub-Division or granting to any customer secret
rebates, subsidies, commissions, or advertising credits.
See paragraph 2 of order approving this amendment.


"2. Granting (excepting in connection with Government con-
tracts) options or reservations or selling at value,' or guaranteeing
prices against either advances or declines.
"3. Shipping goods on consignment, except as may be provided
for in a Division or Sub-Division merchandising plan.
"4. Improperly marking perfect goods as seconds or otherwise.
"5. Publishing or distributing any advertising which is mislead-
ing or inaccurate in any material particular, or in any way mis-
representing any goods, or values, policies, services, or the nature
or form of the business conducted.
"6. Manufacturing or selling any article in imitation of a com-
petitor's package, trade mark, or trade name, or selling from a
competitor's samples.
"7. Failing to print on copy of contract or order the standard
sales contract provisions required by Division or Sub-Division rules.
8. Performance of commission work by any employer as an
incidental function outside his regular recognized activities, without
complying with his merchandising plan in force for the Division
or Sub-Division covering such commission work.


"1. The Sub-Code Authority of each Division of the Industry
is directed to appoint a Panel consisting of as many persons as it
deems proper (not limited to members of the Division), to be known
as the Panel on Trade Disputes and Unfair Practices of the
"2. The Panel shall have jurisdiction to hear, on the complaint of
any interested person, any dispute, or controversy relating to a
violation of any trade practice provision of this Code, which may
effect that Division, or to a violation of the rules of practice or mer-
chandising for that Division.
"Immediately upon receipt of such complaint in writing a list of
members of the Panel shall be submitted to the party or parties
involved who may cross off from the list names of persons to whom
objection is made. The Sub-Code Authority will then select a com-
mittee from the remaining members of the Panel consisting of not
less than three (3) or more than seven (7) to hear the complaint and
to make recommendation to the Sub-Code Authority which shall
take such action as it deems necessary. All persons subject to this
Code shall submit to the Panel such facts and figures pertinent to any
controversy within the jurisdiction of the Panel, as the Panel may
request. In the event that either party desires to appeal from the
findings of the Panel, the matter shall then be referred to the Ameri-
can Arbitration Association.
3. In the event of an unsettled dispute between buyer and seller,
the seller must report the dispute to the Sub-Code Authority. The
buyer may refer his case through the appropriate Sub-Code Author-
ity to the Panel on Trade Disputes and Unfair Practices of the
Division, if he so elects, or may take the matter direct to the Ameri-
can Arbitration Association.
4. A copy of the findings in any arbitration either by the Panel
or by the American Arbitration Association shall be promptly for-

warded to the Sub-Code Authority anrl may at the discretion of that
Authority be published to tile members of the Division concerned.


"1. The employment (of any .ubterfuge to circumvent this Code or
any provision thereof .shall be regarded as a violation thereof.
2. By presenting this Code the members of the Industry assent-
ing thereto do not thereby consent to any modifications thereof and
they reserve the right to object individually or jointly to any such
3. Where the rules of practice or merchandising for any Division
require or permit the filing of prices and or samples, and price files
and/or sample files shall not be available for inspection by members
of the Division, but members of the Division will be entitled to ask
at reasonable times for information contained in said files, which
information shall be furnished by those in charge of the files.


For the purposes of this Code, the following groups of persons
engaged in the Wool Textile Industry shall constitute the respective
divisions of the Industry. Such divisions may be subdivided, com-
bined, or realigned from time to time by the Board of Directors of
the National Association of Wool Manufacturers.
I. Worsted Men's Wear
II. Worsted Women's wear
"'III. Carded Men's wear
IV. Carded Women's wear
V. Blankets
"VI. Cotton Warps
"VII. Knitted Woolen Goods
"VIII. Worsted Spinners (sales yarn) Bradford System
"IX. Worsted Spinners (sales yarn) French System
"X. Carded Spinners (sales yarn)
"XI. Combers
"XII. Wool scourers and carbonizers
XIII. Piece Goods Selling
"XIV. Reworked wool
XV. Topmakers
For the purpose of the Rules of Practice and Merchandising for
the Piece Goods Selling Division ', this Division shall be composed
of the active members making Worsted Men's Wear, Worsted
Women's Wear, Carded Men's Wear, Carded Women's Wear, Cot-
ton Warps, and Knitted Woolen Goods.
"Each member of said Division shall vote either individually or
through a duly appointed representative."
Approved Code No. 3--Amendment No. 1.
Registry No. 286-04.

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