NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SHOE MACHINERY INDUSTRY
AS APPROVED ON APRIL 6, 1934
WE DO OUR PART
I _l7 O I--
Sr,. r-, 'vT(V.Y
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Superintendent of Documents. ashington. D.C. - Price 5 cents
Approved Code No. 387
Registry No. 1399-28
This publication is for sale by the Superintendent of Documents, Government
PiiLtini, Ollti :, W;i-liil:g(-n. D.C., and by district ..ftii(- of the Bureau oi
Foreign and Domestic Commerce.
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Approved Code No. 387
CODE OF FAIR COMPETITION
SHOE MACHINERY INDUSTRY
As Approved on April 6, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE SHOE MACHINERY
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 a Code of
Fair Competition for the Shoe Machinery Industry, and hearings
having been duly held thereon and the annexed report on said Code
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 Presi-
dent, 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 Code complies 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 Code of Fair
Competition be and it is hereby approved.
HUGH S. JOHNSON,
Admin ;e i ,sraor for Industrial Recovery.
A. R. GLANCE,
Division Admini strator.
April 6, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR; This is a report on the Code of Fair Competition for the
Shoe Machinery Industry, as revised after a Public Hearing held in
Washington, D.C., on the 22nd day of January, 19):'4, in i!c'orlane
with the provisions of the National Industrial Recovery Act.
PROVISIONS AS TO il I:S AND WAGES
Employment is limited to 8 hours per day and 40 holr~ per \week
and 6 days in any 7 day period, with the exceptionl of employees
engaged in eliiergenicy maintenance or e:,e-rgvin-y repair work and
executive or -ipervi-ory employees and research technicians, who
now receive $35.00 or more per week or traveling salesmen or
salaried field service men. Engineers and firemen are permitted to
work 44 hours and watchmen may be employed 56 hours per week.
To provide for emergency production demands overtime is allowed
to the extent of 5 hours in any one week.
Overtime in excess of 8 hours in any 24 hour period or in excess
of 40 hours in any 7 dayperiod will be paid for at one and one-half
times the normal rate.
Minimum wages of 40 cents per hour for males and females are
established and when females perform substantially the same work
or replace males they shall receive the same rate of pay as the
males. Office and clerical employees are to receive a minimum rate
of $15.00 per week except that office boys and girls may be paid at the
rate of $12.00 per week.
ECONOMIC EFI'I.t"r OF THE (.'lE
Before the adoption of the reduced hourly schedule in 19'.3. this
Industry average 42.5 hours per week. Its forty-three companies
employ nciimrillly 9,000 per-ons. Adoption of the 40 hour werk would
increase employment to about 9,560 pi.-on, or an inii'rc;ai of about
6 per'- ent..
The invested capital of the Industry is about $94.000,000 and the
average annual sales for the past five years have been about
The Deputy Ailiniiiistrator in his final report to me on having
fund as herein set forth and on the basis of all the proceedingss in
I find that:
(a) Sa:id C(le is well designed to 'promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpo.'-c of cooperative action among the tr:AIlc group.,
by inducing and matantaining united action of labor and mianage-
ment under adequate g(overln(enltal suancti(on, and Iupicrvision, by
eliminating unfair competitive practices, by prolmotilng the fullest
possible utilization of the present 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 increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwi-,e rehabilitating industry.
(b) Said Indu-try normally emplo)y not more than 50,0)0 em-
ployee.: and is not classified by me as a major indlutry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without lmita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an industrial association truly representative of the aforesaid
Industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate 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
For these reasons, this Code has been approved by me.
HUGH S. JOHNSON,
APRIL 6, 1934.
CODE OF FAIR COMPETITION FOR THE SHOE
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are c-ttablished as a Code of
Fair Competition for the Shoe Maichinery Industry, and shall be
the standards of fair competition for such Industry and shall be
binding upon every member thereof.
ARTICLE II-DnFINrrmI NS
The term Industry ", as used herein, shall be defined to mean
the manufacture, repair or rebuilding, for sale or lease, of ma-
chinery, mechanisms, and mechanical devices, used in the manufac-
turing or repairing of foot wear.
The term Employee ", as used herein, includes anyone engaged
in the Industry in any capacity receiving compensation for his
services, irrespective of the 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
anyone engaged in the Industry as above defined either as an
employer or on his own behalf.
The term Institute ", as used herein, signifies the Shoe Machinery
The term Student Learner ", as used herein, shall designate
anyone enrolled as a student at an institution of learning, who works
in the Industry part time, and who is not regularly employed in
The term "Apprentice ", as used herein, shall designate anyone
regularly indentured for a sufficient length of time to systematically
learn the various operations in any one of the trades or occupations
in the Indlutry.
The terms President.", "Act", and "Adt inistrrator", as used
herein, hiall mean, re-pectively, the Pireident of the United States,
Title I of the National Industrial Recovery Act, and the Admin-
istrator for Industrial Recovery.
The teirm Effective Date", as used herein, shall be the second
Monday after the approval of this Code by the Preside'nt.
ArTICLE III-H(n S-
Surnxs 1. No employee shall be permiittdr to work in excess of
forty (40) hours in any one (1) we-ok, or eight (8) hours in any
tw'ilty-four (24) hour period, except as herein otherwise provided.
SECTIoN 2. To cover an emergency production demand which can
not be met by hiring additional employees, an allowance above the
maxinmu hours fixed in Section 1 of this Article, of not to exceed
five (5) hours in any one (1) week shall be permitted; provided
that not less than one and one-half (11/2) times his regular rate of
pay shall be paid for such hours.
SECTION 3. Watchmen shall not be permitted to work in extces of
fifty-six (56) hours per week.
SECTION 4. The maximum hours provisions of Section 1 of this
Article shall not apply to executive or supervisory employees and
research technicians who now receive thirty-five ($35.00) dollars
or more per week, or to traveling salesmen, or salaried field service
SECTION 5. The maximum hours provisions of Section 1 of this
Article shall not apply to any employee on emergency maintenance
or emergency repair work involving breakdown or protection of life
or property, but in any such special case, at least one and one-half
(1Y2) times his regular rate shall be paid for hours worked in
excess of the maximum herein provided.
SECTION 6. No employee shall be regularly employed more than
six (6) days in any seven (7) day period.
SECTION 7. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
for another employer or employers exceeds the maximum permitted
SECTION 8. Employers who personally perform manual work or
are engaged in mechanical operations shall not exceed the prescribed
maximum number of hours.
SECTION 9. The maximum hours provisions of Section 1 of this
Article, shall not apply to engineers and firemen who shall be per-
mitted a ten (10%) percent tolerance over the maximum hours
provisions of Section 1 of this Article.
SECTION 1. (a) No employee, except as hereinafter provided, shall
be paid less than at the rate of forty (40) cents per hour.
(b) No clerical or office employee shall be paid less than at the rate
of fifteen ($15.00) dollars per week; provided, however, that office
boys. office girls, and messengers may be paid not less than eighty
(b80 ) percent of the fifteen ($15.00) dollar rate herein fixed; but
the total number of such office boys, office girls and messengers so
paid shall not exceed five (5%) percent of the total number of office
and clerical employee:, of the employer, but in any case such employer
shall be entitled to employ and so pay at least one (1) such employee.
SECTION 2. This Article establishes minimum rates of pay, regard-
less of whether an employee is compensated on a time-rate, piece-
work, or other basis.
SECTION 3. Prompt adjustments must be made in all rates in which
equitable adjustments have not been made or are not in effect. In no
case shall the hourly or piece rates be reduced as a result of adjust-
ments in the hourly working schedules. Each member shall report
the action taken to the Code Authority within thirty (30) days
after the effective date and to the Administrator on request by the
SECTION 4. A person whose earning capacity is limited because of
age or physical or mental handicap may be employed at a wage below
the minimum establi-hel by this Code if the employer obtains from
the state Authority de-ignaited by the United States Dephrtment of
Labor a certificate authorizing his employment at such wages and
for such hours as shall be stated in the certificate. Such Authority
shall be guided by thel instructions of the Department of Labor in
issuing certificates. to such persons. Each employer shall file with
the Code Authority a list of all such persons employed by him.
SECTION 5. Female employees performing su-tiantially the same
work as male employees shall receive the s-azre rate of pay as male
employ es; and where they replace men, they shall receive the same
rate of nay as the men they displace. The Code Authority shall
witliin ninety (90) days after the effective date of this Code file
with the Administrator a description of all occupations in the
Industry in which both men and women are employed.
SECTION 6. Nothing contained in this Article IV shall apply to or
affect student learners who are employed part time in the factories
of this Industry where they receive instruction as part of their
course of studies at an institute of learning.
SECTION 7. Apprentices shall be regularly indentured for a suffi-
cient period of time to be systematically advanced through the
various operations in any one of the trades or occupations. The
number of apprentices shall not exceed a ratio of one (1) such ap-
prentice to ten (10) competently skilled journeymen employed by the
employer in the Industry. Copies of all apprentice contracts shall
be filed with the Code Authority and be subject to review by the
ARTICLE V-ADDITIONAL LABOR PROVISIONS
SECTION 1. (a) No person under sixteen (16) years of age shall
be employed in the Industry.
(b) Within sixty (60) days after the effective date, the Code
Authority shall compile and submit to each member and to the Ad-
ministrator a list of operations and occupations in the Industry
which are hazardous in nature or dangerous to health, and after
receipt of such list no person under eighteen (18) years of age
shall be employed by any member at such operations or occupations.
(c) In any state an employer shall be deemed to have complied
with this provision as to age if he shall have on file a certificate or
permit duly .-ignel by the authority in such state empowlered to
issue employment or age certificates or permits showing that the
employee is of the required age.
SECTI,,N 2. In rol pliance with Section 7 (a) of the Act it is
(a) That emplloyee-s 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 stuch Irepresentatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other nmutal aid or protection.
(b) 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.
(c) 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.
SECTION 3. No employer shall reehi'lsify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the purpose or provisions of the Act or of this
SE'cTIn,, 4. Every empl,)oyr shall make reasonable provision for
the safety and health of his employees at the place and during the
hours of their employment. Standards for safety and health shall
be submitted by the Code Authority to the Administrator for
approval within six (6) months after the effective date of this Code.
SECTION 5. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent requirements
as to age of employees, wages, hours of work, or as to safety, health,
sanitary or general working conditions, or insurance, or fire pro-
tection, than as imposed by this Code.
SECTION 6. The posting provisions of this Code shall be in
accordance with orders by the President or the Administrator.
SECTION 1. Organization and Constitution of the Code Authority:
(a) The Code Authority shall consist of nine (9) individuals,
or such other number as may be approved from time to time by the
Administrator, to be selected as hereinafter set forth. The Adminis-
trator, in his discretion, may appoint not more than three (3) ad-
ditional members (without vote) to represent the Administrator
or such groups or interests as he may designate.
(b) Eight (8) members of the Code Authority shall be elected
by the members of the Industry who are members of the Institute.
This election shall be held at a meeting of the Institute, such meet-
ing to be called by the Institute within fifteen (15) days after the
effective date of this Code.
(c) Notice of such meeting shall be sent to all members of the
Institute and each member shall be entitled to such vote or votes
as determined by the By-Laws of the Institute, said vote or votes
to be cast in person or by proxy or by letter ballot.
(d) A plurality of the number of votes cast shall be necessary
for election, and individuals so elected shall serve for one (1) year,
at the end of which time there shall be another election in the same
manner as above set forth.
(e) One (1) member of the Code Authority shall be elected, if
desired, by members of the Industry who are not members of the
Institute, but who agree to pay their proportionate share of the
expense of administration of the Code, at a meeting duly called for
them by the Institute, within fifteen (15) days after the effective
date of the Code.
(f) Every member of the Industry outside of the Institute who
is registered with the Institute or whose identity and address can
be ascertained through diligent inquiry, shall be notified by the
Institute of the time and place of such meeting by registered mail,
at least ten (10) days in advance of the election and each of the
non-members shall be entitled to one (1) vote, said vote to be cast in
person, by proxy or by letter ballot.
(g) A plurality of the number of votes cast shall be necessary
for election and the individual so elected shall serve for one year, at
the end of which time there shall be, if desired, another election
held in the same manner to elect a successor.
(h) In case the non-members of the Institute fail to elect a repre-
sentative to serve on the Code Authority, its membership will be
automatically reduced to eight (8) individuals.
(i) Any individual elected to the Code Authority shall be eligible
(j) If, however, selection by the Industry is impossible for any
reason, the members of the Code Authority shall be appointed by
the President. Vacancies in the Code Authority shall be filled by
elections conducted in the manner set forth above.
SECTION 2. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall: (a) impose no inequitable restrictions on membership,
and (b) submit to the Administrator true copies of its articles of
association, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
SECTION 3. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may provide such
hearings as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
SECTION 4. If the Administrator shall determine that any action of
the Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for investi-
gation of the merits of such action and further consideration by such
code authority or agency pending final action which shall not be
effective unless the Administrator approves or unless he shall fail
to disapprove after thirty (30) days' notice to him of intention to
proceed with such action in its original or modified form.
SECTION 5. Each member of the Industry shall furnish to the
Code Authority such information and statistics regarding hours of
operation, wngt.s paid, and prices, as may be required by it with a
view to keeping the President of the United States and the Adminis-
trator informed as to whether the Code Authority is taking appro-
priate step to effectuate in all respects the declared policy of the
National Industrial Recovery Act.
SECTION 6. In order to provide the data necessary for the proper
administration of this Code the Code Authority is authorized to
collect from members of the Industry all data, reports, and statistics
when and as required by the President and/or the Ailiinistrator
and/or their agent or agents and/or the Code Authority. Each ~uCh
member shall send his confidential data signed by him or his proper
agent to a neutral agency, bound to .secrecy, designated by the Code
Authority, in a plain envelope contained in an envelope addillciv.ed
to the neutral agency. This neutral agency shall a:.-.,'nllle all such
data and present to the Code Authority only the combined totals.
Each such member shall retain copies of his own data to be stnt
direct, by him to the Administrator, if required by the latter.
Reports submitted by the Code Authority to the President and/or
the Administrator shall be in the form pre,'cribod and/or approved
SE TION 7. Members of the Industry shall be entitled to participate
in and share the benefits of the :wtivities of the Code Authority and
to participate in the election of the members thereof by assrtnting
to and complying with requirements of this Code, and sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority, subject to review by the Administrator,
on the basis of volume of business and/or such other factors, as
may be deemed equitable.
SECTION 8. In addition to the information required to be sub-
mitted to the Code Authority 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 the Act, and
nothing herein contained shall relieve anyone of any existing obli-
gation to furnish reports to Government agencies.
SECTION 9. The Code Authority shall have the following further
duties and powers to the extent permitted by the Act:
(a) To adopt by-laws and rules and regulations for its proce-
dure and for the administration of this Code.
(b) To represent the Industry in conferring with the President
or his agents with respect to the administration of this Code and
in respect of the National Industrial Recovery Act and any regu-
lation issued thereunder.
(c) To hear complaints and attempt to adjust the same, under
such rules and regulations as may be prescribed by the Adminis-
(d) To coordinate the administration of this Code with such
codes, if any, as may be adopted by any subdivision of this Indus-
try or any related industry, with a view to providing joint and har-
moniolu; action on all matters of common interest, all with the
approval of the Admniistrator.
(e) To consider proposals for amendments or modifications and
make recommendations from time to time which amendments or
modifications will become effective as part of the Code, upon
approval of the Administrator after such notice and hearing as he
may speei fy.
(f) To make rules and regulations necessary for the adminis-
tration and for facilitating the enforcement of this Code, under such
rules and regulations a;. may be prescribed by the Admnini-tr;itor,
subject to the right, of any affected person to appeal to the Admin-
ARTICLE VII-UNFAIR PRACTICES
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
(a) Defamation.-The defamation of competitors by falsely im-
puting to them dishonorable conduct, inability to perform contracts,
questionable credit standing, or by other false representations or by
the false disparagement of the grade or quality of their goods.
(b) Secret Rcbat.e .-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
purchasers of special services or privileges not extended to all pur-
chasers on like terms and conditions.
(c) Inaccurate Labelling.-The branding or marking or packing
any goods in any manner which is intended to or does deceive or
mi-slead pulrcllasers with respect to the brand, grade, quality, quantity,
origin, size, sub-tance, character, nature, finish, material content
or preparation of such goods.
(d) Misiepres etation or False or Misleading Advertising.-The
making or causing or knowingly permitting 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, character, nature, origin, size, finish, or prepara-
tion of any product of the Industry, or the credit terms, values, poli-
cies, or services of any member of the Industry, or otherwise, having
the tendency or capacity to mislead or deceive customers or pros-
(e) Commercial Bribery.-The giving, permitting to be given, or
directly offering to give, anything of value for the purpose of influ-
encing or rewarding the action of any employee, agent, or representa-
tive of another in relation to the business of the employer of such
employee, the principal of such agent or the represented party,
without, the knowledge of such employer, principal or party. Com-
mnercial bribery provisions shall not be construed to prohibit free
and general distribution of articles commonly used for advertising
except so far as such articles are actually used for commercial
bribery as hereinabove defined.
(f) Cash Discounts.-The allowance of a cash discount when pay-
ment is made after the date regularly established for cash discount
by such member; in no case shall the cash discount allowed exceed
two (2%) percent.
(g) Other Unfair TraJ, P,,-h ;, .,.-Nothing in this Code shall
limit, the effect of any adjudication by the courts, or holding by the
Federal Trade Commimii-.-in on co mplaintint, finding, andl orler, that
any practices or nictl-d(, is unfair. providing that. such adjudication
or holding is not inconsistent with any provl'ion of the Act or of
A:ICI(.E VIII-GENERAL PRMvisIO.,NS
S :(TIO(x 1. Modif.iction.-(a) This Code and all the provisions
thereof are _'uxplres ly limade subject to the right of the President,
in aunlrdance with ihe provisions of Subsection (b) of Section 10
of the National Industrial Recovery Act, from time to time to
cancel or modify any order, approval, licen.,e, rule, or regulationn
issued under Title I of said Act and specikfi-ally, but without limita-
tion, to the rii-lit of the Presildlnt to cancel or modify his approval
of this Code or any (indlitins i imposed by him upon his approval
(b) This Cole, except as to pi,,'isions required by the Act, may
be nmoifiel on the basis of experience or chlliinges in -i'iiil-tan 'is,
such modifications to be !):i- c upon application to the A,1 iii ii-tri tor
and such noti.-,, and hearing as he shall pc,,cify, and to iero.l effec-
tive on apjf.rov(\l of the Adiii-(r;.eior.
SECTION 2. N-Itlhiil, in this C, .. shall be '',ll-trued as prohibit-
ingr any member of the Indu-try from exerci-ing all his lawful
ARTICLE IX-M-ON,.ip.L r.s
No provision of this Code shall be so applied as to permit iiionopo-
lies or monopolistic pra-tie-, or to eliminate, oppress, or discrimi-
nate ac ain-t small ctntvrprises.
ARTICLE X-EFFErCIVE DATE
This Code shall bi-clwin. effective on the second Monday after its
approval by the President.
Approved Code No. 3.7.
Registry No. 13'9-26.
UNIVERSITY OF FLORIDA
3 1262 08582 9017