Registry No. 801-1-01
NATIONAL RECOVERY ADMINISTRA
PROPOSED CODE OF FAIR COMPETITION
AS SUBMITTED ON JULY 29, 1933
WE DO OUR PART
____ _. POSI-T ----
The Code for the Rubber Footwear Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
PROPOSED CODE OF FAIR COMPETITION FOR THE RUBBER
In order to carry out the intent and provisions of Title I of the
National Industrial Recovery Act, the following provisions are
established as a Code of Fair Competition for the Rubber Footwear
The term "Rubber Footwear Industry" as used herein is defined
to mean the manufacture and/or wholesale sale by manufacturers of
all types of so-called Waterproof and Canvas Rubber-soled Footwear.
The term "Employees" as used herein is defined to include all
factory employees working for wages, except repairshop crews,
engineers, electricians, firemen, supervisory staff, shipping, watching
and outside crews, office employees, and salesmen.
The effective date of this Code shall be 14 days after the date of its
approval by the President of the United States.
All terms, provisions and conditions of this Code, as it may finally
be approved, and any subsequent revisions thereof or additions
thereto, shall apply to any person, partnership or corporation engaged
in the Rubber Footweat Industry, as defined in Section I above.
1. As provided in Section 7 (a) of Title I of the National Industrial
Recovery Act, the following provisions are embodied in 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 employers 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 con- *
edition of employment to join any company union or to refrain from
joining, organizing, or assisting a labor organization of his own
choosing; and (3) that employers shall comply with the maximum
hours of labor, minimum rates of pay, and other conditions of em-
ployment, approved or prescribed by the President."
2. It is clearly understood that the foregoing paragraphs do not
impair in any particular the constitutional rights of the employee
and employer to bargain individually or collectively as may be
mutually satisfactory to them; nor does it impair the joint right of
employee and employer to operate an open shop.
3. On and after the effective date of this Code, employers in the
Rubber Footwear Industry shall not employ any minors under the
age of 16 years.
4. Nothing in this Code is to prevent the selection, retention, and
advancement of employees on the basis of their individual merit,
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without regard to their affiliation or nonaffiliation with any labor
5. The maximum hours of employees shall be limited to 36 hours
per individual per week, with a limit, per individual per day of 8
hours, and a maximum seasonal tolerance of 120 hours per year.
6. In order to avoid unbalanced production, such employees occu-
pied in milling, calendering, curing, and other like limited machine
capacity, shall, to the extent of not more than 20 percent of the
total employees, be permitted to work 48 hours per week with an
annual tolerance of 120 hours per individual per year for mechanical
and manual interruption, and seasonal peak loads.
7. On and after the effective date, the minimum wage that shall
be paid by employers in the Rubber Footwear Industry to any of
their employees, except learners doing a maximum 6-weeks' appren-
ticeship at a minimum of 250 per hour, shall be at. the rate of 350
8. It is agreed that the proper graduations above the minimum
wages shall be maintained in the wage amount received by the higher
SECTION IV-REPORTS OF PRODUCTION, SALES, INVENTORY, WAGES,
Monthly returns showing production, sales, and inventory, classi-
fied into the general terms of the Industry, and wages paid and hours
worked, shall be made by each member to the Rubber Manufacturers
Association, Inc., 250 West 57th Street, New York City, which shall
constitute the agency to collect and receive such reports and distribute
the collected information to the Industry members.
SECTION V-ACCOUNTING AND COSTING AND SPECIFICATION
1. A uniform and equitable system of accounting and cost control
shall be devised by the Footwear Division Accounting Committee of
the Rubber Manufacturers Association for adoption by each member
of the Rubber Footwear Industry which system shall be used by each
member of the Industry as a basis for establishing said member's
2. Specfidcaionr.-There shall be a Committee of the Industry
consisting of three representative members which shall from time to
time present for adoption, with reasonable tolerances, by the Industry,
definitions of standard products under the title "Standard Products
Specifications," which definitions when adopted shall be filed with the
Rubber Manufacturers Association.
3. Any manufacturer may make Footwear of higher quality than
that defined in adopted Specifications as provided in Section V,
Paragraph 2, and/or included in an adopted selling schedule as pro-
vided in SectionVIII, and in that event shall independently make his
own selling prices on such Footwear in accordance with Section VII,
Paragraph 1, provided such prices shall not be lower than any adopted
minimum schedule on relative products.
There shall be a Committee representative of the Industry whose
duty it. shall be in order to effectuate this Code, particularly as referred
to in Section 3 (e) of the Act, to investigate and inform the Adminis-
tration on behalf of the Rubber Footwear Industry as to the importa-
tion of competitive articles into the United States in substantial
quantities or increasing ratio to domestic production on such terms
or under such conditions as to render ineffective or seriously to en-
danger the maintenance of this Code, and as an agency for making
complaint to the President on behalf of the Rubber Footwear Indus-
try under the provisions of the National Industrial Recovery Act in
respect thereto, and it is the intention of this Code that all domestic
sales shall be made under the terms of this Code.
1. No manufacturer shall initiate prices on regular merchandise
(other than on factory damaged and obsolete merchandise) at less
than its unit cost of production, as determined under the system
provided for in Section V, Paragraph 1, plus its related cost of market-
ing, including transportation, plus a fair and reasonable profit, unless
it is sold in accordance with an adopted schedule under Section VIII
herein, which schedule had become out of line due to unforeseen
changes in costs.
2. Marketing of Factory-Damaged and Obsolete Goods.-There shall
be a Committee of the Industry consisting of three representative
members which shall recommend for adoption from time to time,
cooperative methods of properly identifying and disposing of factory-
damaged and obsolete goods, in order that the marketing of such
goods may be carried out in an orderly and fair manner.
3. To assist in providing uniform trade practices and preventing
discrimination and unfair competition, group customer classification
definitions shall be adopted by the Footwear Industry for the follow-
ing classifications under the title of "Definitions of Buyers of Foot-
wear," and such definitions shall be filed from time to time with the
Rubber Manufacturers Association, Inc.:
Classification of Buyers of Footwear.
(B) Mail Order Houses.
(C) Chain Stores.
(D) Department Stores.
(E) Cooperative Buying Associations.
(F) Group Combinations.
3. Abattoirs, etc.
2. Resident Buyers.
SECTION VIII-SELLING SCHEDULES
1. Due to the seasonal character of the sales demand for Rubber
and Canvas Footwear and the desirability for stabilization of the
production, there shall be a Committee of the Industry consisting
of 3 representative members to be called a "Cost Committee of the
Rubber Footwear Industry" which shall from time to time, upon the
basis of the system provided for in Section V, Paragraph 1, present
the costs for various standard kinds and grades of Footwear which
in their opinion will obtain during a limited period in the future,
and on the basis of such costs and in accordance with Section VII,
shall recommend a selling schedule which shall, if and when adopted,
then be promptly filed with the Rubber Manufacturers Association,
Inc., together with a notation of the effective date.
2. This committee shall also from time to time, after taking into
consideration marketing costs in the industry, recommend the
proper discounts and terms of sale to be given the different classifica-
tions of trade as defined in Definitions of Buyers of Footwear" and
such schedule of discounts, if any, and/or terms of sale or uniform
sales contracts, if and when adopted, shall be promptly filed with the
Rubber Manufacturers Association, Inc.
3. It is desirable that the schedules provided for in this Section
be filed before the beginning of the respective selling season of the
product involved and remain in effect during such selling season,
but if due to unforeseen changes in costs these schedules become in-
consistent with Section VII, Paragraph 1, the Committee shall
promptly recommend new schedules for adoption.
4. Where the costs of executing contracts entered into in the
Rubber Footwear Industry prior to July 1, 1933, are increased by the
application of the provisions of the National Industrial Act and this
Code, the prices specified in such contract shall be increased to reflect.
such increased costs and shall be paid by the Purchaser.
SECTION IX--TRADE PRACTICES
1. No goods will be sold under any conditions on consignment to
any classification of account.
2. No order except a detailed order with specified shipping date
will be accepted.
3. No contracts shall be made that do not provide for change of
prices without notice. Where change of price occurs at the start of
the season (as determined by the Footwear Division of the R.M.A.),
it becomes effective as to shipments immediately. Where change of
price occurs during consuming season (from September 1st to start
of season on Waterproof goods, from March 1st to start of season on
Canvas goods), all shipments made thereafter must be at new prices
except orders on hand, shipment of which can be completed within
30 days after effective date of price change except that such 30-day
period must not extend beyond the start of the next season. Where
change occurs during advance order season, all shipments thereafter
must be at new prices except orders on hand, shipment of which can
be completed within 30 days after the start of the consuming season.
4. No special terms, secret rebates, irregular credit exchanges or
returns, advertising or other allowances of any nature whatever
beyond the established prices and discounts, if any, for any class of
trade shall be made. All so-called premiums when distributed with
the Industry's merchandise shall be sold at cost plus handling charges,
and a minimum profit of 10%.
5. Violations of any schedule as filed with the Rubber Manu-
facturers Association, Inc., as provided herein shall be deemed a
violation of the Code of Fair Practice of the Rubber Footwear
Industry and subject to such penalties as provided in the National
Industrial Recovery Act.
SECTION X-ENFORCEMENT OF CODE
There shall be a committee representative of the Industry whose
duty it shall be, in order to effectuate this Code in reference to alleged
violation thereof, to investigate and inform the Administration on
behalf of the Rubber Footwear Industry of any such violation. And
all members of the Industry agree to open their records and corre-
spondence to an auditor of the Rubber Manufacturers Association for
the purpose of such investigation.
SECTION XI-ALTERATION OR AMENDMENT OF CODE
1. Any addition, alteration, or amendment of this Code which has
had the approval of 75% of the Footwear Industry's membership,
providing such members shall represent at least 50% of the Foot-
wear Industry's volume, shall be presented to the President of the
United States or the proper Administrative Agency under him for
approval, and if approved, shall become a part of tils Code, effective
as of the date of such approval.
2. In the event that any specific provision of this Code is declared
invalid or unenforceable, all remaining provisions shall nevertheless
continue in full force and effect, the same as if they had been separately
and individually presented for approval and approved by the President
of the United States.
3. As provided in Section 10 (b) of Title I of the National Industrial
Recovery Act, the following provision is embodied in this Code:
"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."
MINVERSITY OF FLORIDA
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