Registry No. 1399-1-10
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
LAUNDRY AND DRY CLEANING
SAS APPROVED ON OCTOBER 3. 1933
UNIV. OF FL LIB. us.
M DO OUR PART
1. Executive Order
2. Letter of Transmittal
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CODE oF FAIR COMPErTIION FOR THE LAUNDRY AND DRY CLEANING
MACHINERY MANUFACTURING INDUSTRY
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 Laundry and Dry Cleaning Machinery
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 Ad-
ministrator 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 the requirements of clauses (1) and (2) of sub-
section (a) of Section 3 of the said Act have been met:
NOW, 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, recommendations, and
findings of the Administrator and do order that the said Code of
Fair Competition be and is hereby approved.
FRANKLIN D. ROOSEVELT.
THn WHITE HOUSE,
HUGH S. JOHNSON,
SEPTEMBE 25, 1933.
The White House.
MY DEAR Mn. PRESIDENT: I have the honor to submit and recom-
mend for your approval the Code of Fair Competition for the
Laundry and Dry Cleaning Machinery Manufacturing Industry.
The following exhibits are included or attached:
1 Final Code Submitted.
2 Notice of Hearing.
8 Statement of Procedure.
4 Transcript of the Records.
5) Statistical Analysis of the Division of Economic Research
(6) Report of Deputy Administrator.
n analysis of the provisions of the Code has been made by the
Administration. I find that the Code complies with the require-
ments of Clauses 1 and 2, Subsection (a) of Section 3 of the
National Industrial Recovery Act.
I am, my dear Mr. President,
Very sincerely yours,
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR THE LAUNDRY AND DRY
CLEANING MACHINERY MANUFACTURING INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions upon approval by the Presi-
dent shall be the standard of fair competition for the Laundry and
Dry Cleaning Machinery Manufacturing Industry.
The term Laundry and Dry Cleaning Machinery Manufacturing
Industry ", as used herein, is defined to mean the manufacture for
sale of all laundry and dry cleaning apparatus, machinery, appli-
ances, and parts thereof other than small machinery, apparatus,
appliances, and parts thereof for use in the home.
The term employee ", as used herein, includes any person engaged
in any phase of the Industry, in any capacity, in the nature of em-
ployee irrespective of the method of payment of his compensation.
The term employer ", as used herein, shall include every person
promoting or actively engaged in the manufacture for sale of the
products of the Laundry and Dry Cleaning Machinery Manufac-
turing Industry, as herein defined.
The term "person ", as used herein, shall include, but without
limitation, natural persons, partnerships, associations, trusts,
trustees, trustees in bankruptcy, receivers and corporations.
The term "effective date", as used herein, is defined to be the
eleventh day after this Code shall have been approved by the Presi-
dent of the United States.
The following provisions are conditions of this Code:
(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 employees 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.
(a) On and after the effective date employers shall not employ
any person under the age of 16 years; provided, however, that where
a State law provides a higher minimum age, no person below the
age specified by such State law shall be employed within that State.
(b) On and after the effective date the minimum wage shall be
paid by employers to any employee engaged in the production of the
products of the Laundry and Dry Cleaning Machinery Manufactur-
ing Industry and in labor operations directly incident thereto shall
be 40 cents per hour; provided, however, that casual and incidental
labor and learners may be paid not less than 80 percent of such
minimum wage, but the total number of casual and incidental labor-
ers and learners shall not exceed 5 percent of the total number of
employees covered by the provisions of this paragraph (b) and,
provided further, that after three months of work learners shall be
paid not less than the minimum wage herein provided and, provided,
also, that female employees employed during the same hours of the
day and for the same class of work as male employees shall be paid
at the same rate of pay as such male employees.
(c) On and after the effective date the minimum wage that shall
be paid by any employer to all other employees shall be at the rate
of $14.00 per week; provided, however, that office boys or girls,
learners, and casual employees may be paid not less than 80 percent
of such minimum wage but the total number of such office boys or
girls, learners, and casual employees shall not exceed 5 percent of the
total number of employees covered by the provisions of this para-
(d) Not later than ninety (90) days after the effective date each
employer in the Laundry and Dry Cleaning Machinery Manufac-
turing Industry shall report to the Administrator through the super-
visory agency the action taken by such employer In adjusting the
hourly wage rates for all employees receiving more than the mini-
mum rates provided in paragraph (b) of this Article.
(e) Employers shall not reclassify employees so as to defeat the
purposes of the Act.
(f) This Article guarantees a minimum wage whether employment
is on a basis of hourly rate or piecework performance.
On and after the effective date employers shall not operate on a
schedule of hours:
(a) For employees engaged in the production of products of the
Laundry and Dry Cleaning Machinery Manufacturing Industry and
in labor operations directly incident thereto, in excess of 36 hours
(b) For all other employees, except executive, administrative, and
supervisory employees, and service staff and traveling sales staff,
in excess of 40 hours per week.
Provided, however, that these limitations shall not apply to those
branches of the Laundry and Dry Cleaning Machinery Manufactur-
ing Industry in which seasonal or peak demand places an unusual
and temporary burden for production or installation upon such
branches; in such cases no employee shall be permitted to work more
than an aggregate of 72 hours in any calendar six-months' period
in excess of the limitations hereinbefore provided, and, provided
further, that such limitations shall not apply in cases of emergency;
and, further provided, that in no case shall the average for any
six-months' period be more than 36 hours for employees covered
by the provisions of paragraph (a) above and 40 hours for em-
ployees covered by the provisions of paragraph (b) above. At the
end of each calendar month every employer shall report to the
Administrator, through the supervisory agency, hereinafter pro-
vided for, in such detail as may be required, the number of man-
hours worked in that month for emergency reasons and the ratio
which said emergency man-hours bear to the total number of man-
hours of labor during said month.
Where in any case an employee is worked in excess of eight hours
per day, time and one half shall be paid for the excess hours so
Laundry and Dry Cleaners Machinery Manufacturers' Association
is hereby designated the agency for promoting the performance of
the provisions of this Code by the members of the Laundry and Dry
Cleaning Machinery Manufacturing Industry. With a view to keep-
ing the President of the United States and the Administrator in-
formed as to the observance or nonobservance of this Code and as to
whether the Laundry and Dry Cleaning Machinery Manufacturing
Industry is taking appropriate steps to effectuate in all respects the
declared policy of the National Industrial Recovery Act, the super-
visory agency shall make such reports as the Administrator may
direct, periodically or as often as he may request, and each employer
shall prepare and furnish, when required by the supervisory agency,
to such organization or person as the supervisory agency may desig-
nate, an earnings statement and balance sheet in a form approved by
the supervisory agency, or acceptable to any recognized stock ex-
change. Each employer shall, likewise, prepare and file with such
person or organization as the supervisory agency may designate and
at such times and in such manner as may be prescribed, statistics
of plant capacity, volume of production, volume of sales in units and
dollars, orders received, unfilled orders, stocks on hand, inventory,
both raw and finished, number of persons employed, wage rates, em-
ployee earnings, hours of work, costs, prices quoted prices received,
contracts made, and such other similar data or information as the
supervisory agency may from time to time require to administer
ARTcLE VI-SUPERVI ORY AoENCr
To administer and supervise, and to facilitate the enforcement of
the provisions of this Code, there shall be a committee of six mem-
bers connected with the Industry called the Supervisory Agency, and
the President or the Administrator may appoint not more than three
additional members without vote. The Committee shall be elected
at a meeting of employers called immediately after the approval by
the President of this Code and held immediately prior to the effective
date thereof. The meeting shall be called by the Laundry and Dry
Cleaners Machinery Manufacturers' Association and notice thereof
shall be sent by telegraph and registered mail to all known manu-
facturers of laundry and dry-cleaning machinery. The notice shall
specifically state that voting at the meeting may be in person or by
proxy. The members of the committee shall be elected by a vote of
the employers present in person or by proxy at such meeting, passed
in two ways: (a) by a majority vote of employers present in person
or by proxy as such, and (b) by a seventy-five (75) percent vote by
employers present in person or by proxy, weighted on the basis of
one vote for each $50,000 of sales of products of the Industry made
in the calendar year 1932, as reported to the Secretary of the Laundry
and Dry Cleaners Machinery Manufacturers' Association, but each
employer shall have at least one vote. Vacancies in the committee
due to death or resignation or because a member thereof has ceased
to be connected with the Industry shall be filled by the remaining
members of the committee.
If formal complaint is made to the Laundry and Dry Cleaners
Machinery Manufacturers' Association or to the supervisory agency
that the provisions of this Code have been violated by any employer,
the supervisory agency shall make such investigation as in its opinion
Except as otherwise provided in the National Industrial Recovery
Act, all statistics, data, and information filed in accordance with
the provisions of Article V shall be confidential and the statistics,
data, and information of one employer shall not be revealed to
any other employer except that for the purpose of facilitating the
administration and enforcement of the provisions of this Code, any
and all statistical data furnished in accordance with the provisions
of this Code shall be available to the Supervisory Agency by its
duly authorized representative (who shall not be in the employ of
any employer affected by this Code) and to the Administrator.
ARTICLE VIII-CODE OPEN TO ALL EMPLOYERS
Any member of the Laundry and Dry Cleaning Machinery Manu-
facturing Industry is eligible for membership in the Laundry and
Dry Cleaners Machinery Manufacturers' Association and there shall
be no inequitable restrictions on such membership. Any employer
shall be entitled to vote on and share in the benefits of the activities
of the supervisory agency and may participate in any endeavors
of the Laundry and Dry Cleaners Machinery Manufacturers' Asso-
ciation in the preparation of any revisions of, or additions or sup-
plements to, this Code by accepting his proper pro rata share of
the reasonable cost of creating and administering it, as determined
by the supervisory agency subject to review by the Administrator.
ARTIcLE IX-ACCOUNTING AND COSTING
Every employer shall use an accounting system and a costing sys-
tem which conforms to the principles of and is at least as detailed
and complete as the uniform and standard method of accounting and
the uniform and standard method of costing to be formulated or
approved by the supervisory agency and subject to review by the
Administrator, with such variations therefrom as may be required
by the individual conditions affecting any employer or group of
employers and as may be approved by the supervisory agency and
made supplements to the said formulated or approved methods of
accounting and costing.
AaTncLE X-SSEIu.N BELOW COST
No employer shall sell or exchange any product of his manufacture
at a price or upon terms or conditions that will result in the customer
paying for the goods received less than the cost to the seller deter-
mined in accordance with the uniform and standard method of
costing hereinabove prescribed; provided, however, that discontinued
types or inventories which should be converted into cash may be dis-
posed of in such manner and on such terms and conditions as the
supervisory agency may approve and as are necessary to move such
product into buyers' hands.
ARTICLE XI-PRICE LISTS
As it has been the generally recognized practice in the Laundry
and Dry Cleaning Manufacturing Industry to sell its products on
the basis of printed price lists, with discount sheets and fixed terms
of payment, each employer shall within ten (10) days after the
effective date file with the supervisory agency a price list and dis-
count sheet individually prepared by him showing his current prices
discounts, and terms of payment, and the supervisory agency shall
immediately send copies thereof to all known manufacturers of
laundry and dry-cleaning machinery. Employers who begin to sell
the products of the Industry after the effective date shall file with
the supervisory agency 10 days before making any quotations a price
list and discount sheet showing current prices, discounts, and terms
of payment, and the supervisory agency shall immediately send
copies thereof to all known manufacturers of laundry and dry-clean-
ing machinery. Revised price lists or discount sheets covering any
specific product may be filed from time to time by any employer with
the supervisory agency to be effective on the date specified therein,
which shall be not less than 10 days after such filing, and copies
thereof shall be immediately sent to all known employers who there-
upon may file, if they so desire, revisions of their price lists or dis-
count sheets to meet such revised price lists or discount sheets which
shall become effective upon the date when the revised price list or
discount sheet first filed shall go into effect.
No employer shall sell directly or indirectly by any means what-
soever any product of the Industry at a price lower or at discounts
greater or on more favorable terms of payment than those provided
in his current price lists and discount sheets on file with the super-
ARTICLE XII-TRADE-IN ALLOWANCES
No employer shall make any allowance for apparatus, machinery,
or appliances taken in trade in excess of the amount fixed in the
standard list of trade-in allowances approved from time to time
by the supervisory agency and filed in the office of the Secretary
of the Laundry and Dry Cleaners Machinery Manufacturers'
No employer shall sell, as is and where is, any apparatus, ma-
chinery, or appliances taken in trade for less than the amount of the
trade-in allowance to the buyer from whom taken.
ARTICLE XIII-TERMS OF PAYMENT
Terms of payment on apparatus, machinery, and appliances shall
not exceed three per cent, cash discount for payment in thirty (30)
days or sixty (60) days net from date of invoice.
Terms of payment on service and parts shall not exceed two
percent cash discount for payment by the tenth of the month
following shipment, sixty (60) days net from date of invoice.
No invoice shall be dated later than five (5) days after the date
of shipment covered by the invoice.
No invoice shall be rendered to a customer for less than a minimum
charge of fifty cents (50f).
Interest shall be charged on all accounts beginning sixty (60)
days after date of invoice at a rate of interest not less than six (6)
percent per annum.
ARTICLE XIV-DEFERRED PAYMENT PLAN SALES
No employer shall sell any laundry apparatus, machinery, or appli-
ances or parts thereof to any new laundry plant upon a deferred
payment plan unless the initial cash payment is at least thirty-three
and one-third (331/3) percent of the list price of the article sold,
less the amount of any trade-in allowance. The deferred payment
period shall not exceed thirty (30) months. A new laundry plant
is defined as one conducted by a person not theretofore operating
a laundry plant at the same location.
No employer shall sell any dry-cleaning apparatus, machinery, or
appliances or parts thereof to any new dry-cleaning plant upon a
deferred payment plan unless the initial cash payment is at least
fifteen (15) percent of the list price of the article sold, less the
amount of any trade-in allowance. The deferred payment period
shall not exceed thirty (30) months. A new dry-cleaning plant
is defined as one conducted by a person not theretofore operating a
dry-cleaning plant at the same location.
No employer shall sell any apparatus, machinery, or appliances
or parts thereof to any existing laundry and/or dry-cleaning plants
upon a deferred payment plan unless the initial cash payment is at
least ten (10) percent of the list price of the article sold, Jess the
amount of any trade-in allowance. The deferred payment period
shall not exceed thirty-six (36) months.
On all deferred payment sales to new laundry and/or dry-clean-
ing plants not less than twenty (20) percent of the deferred balance
shall be paid in equal monthly payments (beginning within sixty (60)
days of date of shipment) during a period not in excess of one third
() of the deferred payment period, and the remaining eighty (80)
percent shall be paid in equal monthly payments over the remainder
of the deferred payment period. On all other deferred payment
sales the deferred balance shall be paid in equal monthly payments
beginning within sixty (60) days after date of shipment.
Interest at the rate of not less than six (6) percent per annum
shall be charged upon the deferred balance.
Shipments may be made f.o.b. the nearest plant to the buyer of
any manufacturer of similar apparatus, machinery, or appliances,
except that f.o.b. points on the Pacific Coast shall be Los Angeles, San
Francisco, and Seattle. The buyer shall pay freight in cash in addi-
tion to the down payment.
The following discounts, based upon the invoice price, shall be
applicable to deferred-payment sales on which all payments are made
promptly upon the dates fixed, and may be deducted by the buyer
from the amount of the last payment:
On deferred-payment sales paid in full within twelve (12) months,
two (2) percent.
On deferred-payment sales paid in full within eighteen (18)
months, one and one half (112) percent.
On deferred-payment sales paid in full within twenty-four (24)
months, one (1) percent.
On deferred-payment sales paid in full within thirty (30) months,
one half (/2) of one (1) percent.
Cartage and setting in position ready for connection shall be
charged to the buyer and shall be paid in cash in addition to the
down payment and freight. Supervisory service may be given with-
out compensation. Price lists for the Pacific Coast shall include
cartage and setting in position ready for connection at the f.o.b.
points, Los Angeles, San Francisco, and Seattle.
ARTICLE XV-GUARANTY OF MANUFACTURER
No employer shall make any guaranty on apparatus machinery,
appliances, and parts thereof for a period in excess of six months
from the date of installation. Every employer shall file with the
supervisory agency ten (10) days after the effective date a copy of his
standard form of guaranty.
ArnLE XVI-SERVICE PROVISIONS
Except in the case of service given during the guarantee period,
time and a half shall be charged for overtime and holidays. Over-
time shall begin at 5:00 p.m. and end at 8:00 a.m. on the following
day, Monday to Friday, inclusive. It shall begin at noon on Satur-
day and end at 8:00 a.m. on Monday. It shall begin at 5:00 p.m.
on the day preceding a holiday and end at 8:00 a.m. on the day
following the holiday.
Travel time of any service employee between 8:00 a.m. and 5:00
p.m., transportation and living expenses, shall be for account of the
ARTICLE XVII-ExPERIMENTAL AND TRIAL INSTALLATIONS
A probationary period for experimenting with new types of ap-
paratus, machinery, and appliances shall not extend for more than
one year from the installation of the unit first installed, and such
installations shall be limited to ten (10) different plants and in
number to ten (10) units.
Trial periods to prove a sales point shall not exceed sixty (60)
days from the date of installation. The terms of sale provided in
this Code shall be the terms of sale in the trial order and shall be-
come effective when the apparatus, machinery or appliance on trial
is accepted. If the apparatus, machinery or appliance on trial is
not accepted by the end of the trial period, it shall be removed by
the manufacturer installing it. With the exception of identification
machinery and equipment, no employer shall have more than five
installations of each type of apparatus, machinery, or appliance on
a trial basis at any one time.
Every employer making a probationary or trial installation shall
within five days after such installation notify the supervisory agency
of such installation and shall show in such notification the number
and type of units installed, the date on which installed, and the name
and address of the plant in which installed.
ARTICLE XVIII-DISTRIBUTOR'S RESALES
No employer will sell to or through any distributor who does not
agree to resell the products of the Industry only in accordance with
the provisions of this Code.
ARTICLE XIX-EXPORT SALES
The provisions of this Code covering sales are not to apply to
direct export sales of any product of the Industry or to sales of any
product destined ultimately for export or to sales of parts used in
the manufacture of products for export. The term "export" shall
include shipments to foreign countries and to such territories and
possessions of the United States as may be determined by the super-
ARTICLE XX-UNFAIR COMPETITIVE PRACTICES
The following are declared to be unfair methods of competition in
the Laundry and Dry Cleaning Machinery Manufacturing Industry:
1. The secret payment or allowance, in connection with any sale, of
rebates, refunds, commissions, or unearned discounts, whether in the
form of money or otherwise, or secretly extending to certain pur-
chasers special services or privileges not extended to all purchasers
under like terms and conditions.
2. Directly or indirectly to give or permit to be given, or to offer to
give, money or anything of value to agents, employees, or representa-
tives of customers or prospective customers, or to agents, employees,
or representatives of competitors' customers or prospective customers,
to influence their employers or principals to purchase or contract to
purchase industry products from the maker of such gift or offer, or
to influence such employers or principals to refrain from dealing or
contracting to deal with competitors.
3. Wilfully inducing or attempting to induce the breach of exist-
ing contracts between competitors and their customers by any false
or deceptive means whatsoever, or interfering with or obstructing
the performance of any such contractual duties or services by any
4. Wilfully enticing away the employees of competitors with the
purpose and effect of unduly hampering, injuring, or embarrassing
competitors in their businesses.
5. Defamation of competitors by falsely imputing to them dis-
honorable conduct, inability to perform contracts, questionable credit
standing, or by other false representations or the false disparagement
of the grade or quality of their goods.
6. The making, or causing, or permitting to be made or published,
of any false, untrue, or deceptive statement by way of advertisement
or otherwise concerning the grade, quantity, quality, substance,
character, nature, origin, size, or preparation of any product of the
7. Withholding from or inserting in the invoice statements which
make the invoice a false record, wholly or in part, of the transaction
represented on the face thereof.
8. Intimidating customers of alleged infringers by the owner of
a patent or trade mark.
ARTICLE XXI-RIGHTS OF PRESIDENT
The President may from time to time cancel or modify any
order, approval, license, rule, or regulation issued under Title I of
the National Industrial Recovery Act.
ARTICLE XXII-AMENDMENTS AND ADDITIONS
Such of the provisions of this Code as are not required by the
National Industrial Recovery Act to be included herein, may, with
the approval of the President of the United States, be modified or
eliminated as changed circumstances or experience may indicate.
This Code is intended to be a basic Code and study of the trade
practices of the Laundry and Dry Cleaning Machinery Manufac-
turing Industry and will be continued by the Laundry and Dry
Cleaners Machinery Manufacturers' Association with the intention of
submitting to the Administrator for approval, from time to time,
additions or supplements to this Code, such additions or supplements
however, to conform to and be consistent with the provisions of
ARTICLE XXIII-SEGREGATION OF INDUSTRY
If any employer of labor in the Laundry and Dry Cleaning Ma-
chinery Manufacturing 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 the Laundry
and Dry Cleaning Machinery Manufacturing Industry.
SEPTEMBER 25, 1933.
UNIVERSITY OF FLORIDA
3 1262 08584 7l54111
3 1262 08584 7654