r,::iATIONAL RECOVEJr ADMINISTRATION
CODE OF FAIR COP.ITION -
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Approved Code No. 281
CODE OF FAIR COMPETITION
As Approved on February 16, 1934
CODE OF FAIR COMPETITION FOR THE LAUNDRY TRADE
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 Trade, and hearings having
been held thereon and the Administrator having rendered his report
containing an analysis of the said Code of Fair Competition to-
gether with his recommendations and findings with respect thereto,
and the Administrator 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 subsection (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 for a period of 90
days, within which period the adequacy of the minimum wages
established in this Code shall be given further study by the Adnlin-
istrator, who shall submit his report and recommendation to me for
my further order.
Provided, however, that this Code, other than as shall be necessary
to facilitate the accomplishment of the following requirements, shall
not become effective as to any given trade area in the United States
unless and until the following requirements shall have been fulfilled
for each such trade area:
(1) The Code Authority shall have designated the boundaries of
such trade area as provided in Article VI, Section 6 (c) of the
Code and the Administrator shall have approved the same;
(2) The Code Authority shall have established a Code Control
Board for such trade area as provided in Article VI, Section 6 (d)
of the Code;
(3) The Code Control Board for such trade area shall have caused
to be determined the uniform service names for laundry services,
definitions of said services, a uniform method of billing said services,
and the fair and reasonable minimum wholesale and retail prices
for the several services for such trade area; and shall have secured
the approval of the Administrator thereto, as provided in Article
VI, Section 6 (i) and (j) of the Code.
(4) The Code Control Board shall have obtained signatures to a
petition in such trade area from not less than seventy per cent
(70%), determined according to the method of voting prescribed for
the election of the Board of Directors of the Laundry-owners Na-
tional Association, of the members of the trade within such trade
area, in which petition there is a showing that there exists within
such trade area an emergency productive of widespread unemploy-
ment and disorganization of the Laundry Trade.
(5) The Administrator shall have approved such petition or a
petition containing a less percentage of signatures than hereinabove
provided in the discretion of the Administrator. The Code shall
become fully effective in such trade area upon such approval.
Prior to the full effectiveness of the Code in any given trade area
any member of the trade within such trade area who has signed
such petition, and who certifies that he is complying with the require-
ments of said Code, including approved prices for said trade area,
shall be entitled while so employing to make full use of appropriate
National Recovery Administration insignia.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
A dmin ist rator.
THE WHITE HOUSE,
February 16, 1934.
.i;.il. .. i
LETTER OF TRANSMITTAL
The White House.
Sm: I have the honor to submit and recommend for your approval
the Code of Fair Competition for the Laundry Trade. This Code
was proposed by the Laundryowners National Association, which
represents approximately 82% of power laundries of the trade.
The Public Hearing was conducted in Washington on November
20 and 21, 1933, and every person who filed a request for appearance
in accordance with stautory and regulatory requirements was fully
CONDITIONS IN THE INDUSTRY
Due to excessive plant facilities, lack of adequate reserve, and to
an unusual competitive position, this trade has suffered severely
during the past three years. In many sections vicious price wars
have been initiated in an attempt to bolster falling volume. The
competitive position of the Laundry Trade is extremely unfortunate.
An increase in price meets immediate sales resistance and the erst-
while consumer frequently becomes a competitor. The services of
laundresses can be procured by the housewife at extremely low
nominal rates, especially in the South. Laundry work in the home
has been made a far less unpleasant chore in recent years due to the
introduction of the washing machine and it is pertinent to observe
in this connection that more electric washing machines were sold
during the first 9 months of the current year than during all of 1929.
As a result of these conditions the Laundry Trade during the first
6 months of 1933 was contending against severe handicaps. Volume
had fallen to 56% of the level prevailing during 1929 and in not one
of the 48 states did the Laundry Trade as a whole show an operating
profit during the first half of this year.
Since July, instead of the improvement characterizing other indus-
tries, the Laundry Trade has suffered a further decline. This may
be explained in part by its position as a service industry and by the
fact that the trend in such industries lags distinctly behind the trend
in manufacturing industries. No immediate improvement in the
Laundry Trade can, therefore, be expected as a result of general
business recovery. Such improvement may be expected to be delayed
for many months.
Two problems received paramount consideration in the drafting
of this Code. The first was the necessity for stabilizing the price
structure in such form as to prevent the recurrence of vicious price
cutting. The second was the development of a formula for the grad-
ual re-adjustment of the extremely low wage scale prevailing in this
trade to levels commensurate with those prevailing in other branches
of industry without imposing intolerable burdens upon a large sec-
tion of the trade throughout the country.
Maximum hours are established according to classes of employees,
consisting of 40 hours for plant employees and 48 hours for firemen,
engineers and/or maintenance employees. These hours represent a
substantial reduction in those prevailing prior to the inauguration
of the Recovery program and, in addition, impose requirements more
rigid than those specified under the substitution to the President's
Reemployment Agreement, under which the Trade is at present
Minimum wages are established for plant employees ranging from
300 in cities having a population greater than 600,000 in the north-
east and far west to 14 in Alabama, Arkansas, Florida, Georgia,
Louisiana, Mississippi, the trade area of Albuquerque, New. Mexico,
North Carolina, South Carolina, Tennessee, the portion of Texas east
of the counties of Chambers, Harris, Waller, Grimes, Madison, Leon,
Freestone, Navarra, Ellis, Kaufman, Hunt and Fennin, the trade
areas of El Paso and San Antonio, Texas, and the portion of Vir-
ginia not included in Group D. These last rates are applicable to
establishments employing less than 9%0 of the laundry workers of the
It is not contended that the 14L rate represents a satisfactory
level. Its application has, however, resulted in an increase in
operating payroll of 46% in plants affected. Inasmuch as practi-
cally all the laundries in this section were operating at losses even
prior to these pay-roll increases, it was not felt that any higher
rate was at present economically feasible. It is, however, believed
that the effects of a general up-turn in business combined with the
application of the provisions regulating trade practices in this Code
may so improve the position of the southern laundries as to enable
them to pay rates more nearly commensurate with those which have
been approved for other industries.
MINIMUM PRICE PROVISION
In my letter to you transmitting the Code of Fair Competition
for the Cleaning and Dyeing Trade, the considerations making
essential the adopting of price control for that trade were analyzed.
Similar conditions exist in the Laundry Trade and it was felt ad-
visable to recommend the adoption of a similar method of price
stabilization. This Code provides safeguards for the consumer and
for the trade in that no rates may be established prior to public
hearings to be held in the localities affected and all such rates are
subject to the approval of the Administrator. It is not felt that
this provision will work any undue hardship on the consumer owing
to the fact that the competitive position of the Trade makes un-
warranted price increases impossible and it appears that the adop-
tion of this provision affords the only method of insuring fair
Certain practices now current in this trade have the effect of caus-
ing an unfair competitive advantage in favor of small groups. The
". -"'. *....
S trade has sought to eradicate such practices by making them viola-
tions of this Code.
S The provisions for administration of this Code are capable of pro-
viding the National Recovery Administration and the Laundry
Trade with sufficient data to make recommendations for the limita-
tion 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 trade as a whole.
: Recognizing the great necessity for flexibility in the operation
of service codes, it has been provided in the Executive Order that
This Code shall not become effective as to any given trade area until
the following requirements shall have been fulfilled for each such
(1) The Code Authority, subject to the approval of the Adminis-
trator, shall have designated the boundaries of such trade area;
(2) The Code Authority shall have established a Code Control
Board for such trade area;
(3) The Code Control Board, subject to the approval of the Ad-
ministrator, shall have caused to be determined fair and reasonable
minimum wholesale and retail prices for such trade area;
(4) The Code Control Board shall have obtained signatures to a
petition in such trade area from not less than seventy percent of
the members of the trade within such trade area;
(5) The Administrator, in his discretion, shall have approved
such petitions, or a petition, containing a less percentage of signa-
tures than hereinabove provided.
Prior to the full effectiveness of the Code, any member of the
trade who has signed such petition and who certifies that he is
complying with the requirements of the Code shall be entitled to
full use of appropriate National Recovery Administration insignia.
I find that:
The Code complies in all respects with the pertinent provisions of
Title I of the National Industrial Recovery Act, including, without
limitation, subsection (a) of Section 7, and subsection (b) of Sec-
tion 10 thereof.
The Laundryowners National Association is truly representative
of the Laundry Trade, and the by-laws of this association provide
ho inequitable restrictions to membership.
The Code is not designed to promote monopolies or to eliminate
or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
Accordingly, I hereby recommend the approval of the Code of
Fair Competition for the Laundry Trade.
HUGH S. JOHNSON,
FEBRUARY 15, 1934.
CODE OF FAIR COMPETITION FOR THE LAUNDRY:
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Laundry Trade and shall be the standard
of fair competition for this trade and shall be binding upon every
1. The term laundry trade as used herein includes (a) the wash-
ing, and/or ironing, and'or processing incidental thereto for com-
pensation of any article of clothing, napery, blanket, bed clothing, or
fabric of any kind whatsoever; (b) the collection, distribution, sale,
andl or resale for compensation at retail or wholesale of laundry serv-
ice, and (c) any subdivision which may from time to time be included
herein. For the purpose of assisting the Administrator in the admin-
istration of the Act, the Laundry Industry is classified as a trade.
2. The term laundry establishment" as used herein includes any
place or vehicle in which anyone engages in any phase of the laundry
3. The term retail outlet as used herein includes any laundry
establishment where laundry service is sold, or offered for sale, di-
rectly to the consumer; the term "retailer means any member of
the laundry trade by or for whom a retail outlet is operated.
4. The term member of the laundry trade or member of the
trade as used herein includes anyone engaged in any phase of the
laundry trade either as an employer or on his own behalf, except
washerwomen engaged solely on their own behalf.
5. The term employee as used herein includes anyone engaged in
the laundry trade in any capacity, receiving compensation for his
services, irrespective of thle method of payment of such compensation.
(a) The term clerk as used herein includes any employee work-
ing in the office of a laundry establishment who is engaged in work
of a clerical, accounting, sales, or service character.
(b) The term route salesmen" as used herein includes anyone
employed by a member of the laundry trade on a commission or
salary and commission basis to solicit the sale of laundry service of
such member, to call for articles to be laundered, to deliver such
articles, and to collect payment for the laundering thereof.
(c) The term deliverymen" as used herein includes anyone
whose sole function is to deliver and/or to collect articles to be
laundered and,'or to collect payment for the laundering thereof.
(d) The term "executive as used herein includes any employee
responsible for the management of a laundry establishment or of a
recognized subdivision thereof.
-(e) The. term "'watchman as used herein includes any employee
engaged primarily in safeguarding the premises and property of a
6. The term "employer as -used herein includes anyone by whom
such employee. is compensated or employed.
S7. Population, for the purposes of this Code, shall be determined
by.reference to the Fifteenth Census of the United States (U.S. De-
p4artment of Commerce, Bureau of Census, 1930).
8. The terms President ", "Act ", and "Administrator as used
herein mean, respectively, the President of the United States, the
National Industrial Recovery Act, and the Administrator for Indus-
9. The. term National Association as used herein means the
Laundryowners. National Association of the United States and
10. The term "Authorized Association as used herein means and
includes any Regional, State, or Local Association designated as an
Authorized Association by the National Association.
.11. The term "trade area" as used herein means any area desig-
nated as a trade area by the Code Authority and approved by the
Administrator. Trade areas may be filed without regard for city,
county, sectional, or State lines.1
12. The term "Code Authority as used herein means the national
administrative agency of the laundry trade as established in Article
VI of the Code.
1. Except as hereinafter expressly stipulated otherwise.
(a) No engineer, fireman, or maintenance employee shall be per-
mitted to work in excess of forty-eight (48) hours in any one week.
(b) No clerk employed in any retail outlet shall be permitted to
work in excess of forty-eight (48) hours in any one week.
(c) No deliveryman in cities of a population of 25,000 or more
and their immediate trading areas shall be permitted to work in
- excess of forty-eight (48) hours in any one week. No deliveryman
in cities or towns of less than a population of 25,000 and their imme-
diate trading areas be permitted to work more than six (6) hours
per week in excess of forty-eight (48) hours.
(d) No other employee shall be permitted to work in excess of
forty (40) hours in any one week.
2. The maximum hours fixed in the foregoing section shall not
(a) Executives receiving regularly a salary of $30 or more per
week, included employers.
(b) Employees on emergency maintenance, or emergency repair
work involving breakdowns, or protection of life or of property, but
in any such special case at least 11/ times the normal rate shall be
paid for hours worked in excess of the maximum hours herein
SSee paragraph 3 of order approving this Code.
3. (a) Due to fluctuations in the demand in this trade, the maxi-
mum hours fixed in paragraphs (a) and (d) of section 1 of this
Article shall not apply during six (6) weeks in any thirteen (13.)
week period. During any week in which such maximum hours do
not apply no employee covered in said paragraph (a) shall be per-
mitted to work in excess of fifty-four (54) hours in any one week,
and no employee covered in said paragraph (d) shall be permitted to
work in excess of forty-six (46) hours in any one week, provided,
however, that no employee shall work more than thirty (30) hours
in excess of those specified in paragraphs (a) and (d) of Section 1
of this Article during any thirteen (13) week period.
(b) In any trade area where, due to seasonal peak demands, a
sufficient number of employees qualified for the work is not available,
the Code Control Board having jurisdiction over such trade area
may submit to the Code Authority for approval, subject to review by
the Administrator, exceptions to the maximum hours specified in
Section 1 of this Article.
4. Upon the formation of a Code Control Board in any trade area:
(a) No member of the trade shall be open for the production of
laundry service between the hours of 10 P.M. and 6 A.M. or on
5. No member of the trade shall receive work from or deliver
work to customers between the hours of 8 P.M. and 5 A.M. or on
6. The Code Control Board having jurisdiction over any trade
area may, subject to the approval of the Administrator, make excep-
tions to the hours of operation fixed in Sections 4 and 5 of this Arti-
cle to allow for unavoidable peak periods, emergencies, or conditions
peculiar to such trade area, provided, however, that any member of
the trade who is refused an exception by the Code Control Board
having jurisdiction may file a request for review by the Administra-
tor of the refusal of the Code Control Board within ten days after
such refusal and shall be given a stay of section 4 of this Article for
30 (lays or until his request is reviewed and approved or disapproved
by the Administrator.
7. No employee shall be permitted to work more than six (6) days
in any seven (7) day period,
8. Notwithstanding the exemptions from maximum hours, pro-
vided by section 2 (a) of this Article, such exemptions shall not, in
any case, apply to more than one worker to every ten workers or
fraction thereof. For the purpose of this Section, the word
" worker shall be deemed to include employees, employers, owners,
managers, and persons not receiving monetary wages, when such
persons are actually engaged in any work other than of managerial
or supervisory character. The word worker" shall not include,
however, those covered by paragraphs (b), (c), and (d) of Section
2 of this Article.
1. No office employees shall be paid at less than the rate of:
Zone 1-In cities of more than 500,000 population and their im-
mediate trading areas:
Northern Area $14.00 per week.
Southern Area $13.00 per week.
F. :..; ;
Zone 2-In cities of 100,000 to 500,000 population and their im-
mediate trading areas:
Northern Area $13.50 per week.
Southern Area $12.50 per week.
Zone 3-In cities of less than 100,000 population not covered above,
and their immediate trading areas:
Northern Area $13.00 per week.
Southern Area $12.00 per week.
For the purpose of this Section the "Southern Area" shall in.
elude the following states: Virginia, West Virginia. North Caro-
lina, Kentucky, Maryland, Oklahoma, Texas, Florida, South Caro-
lina, Georgia, Louisiana, Mississippi, Alabama. Tennessee, and Ar-
kansas; the term Northern Area shall include all of the territory
of the continental United States except. that portion included under
the term Southern Area."
2. (a) No other employee shall be paid at less than the rate per
hour specified in Schedule A:
In cities of more than 600,000 population and their immediate
In cities of 100,000 to 600,000 population and their immediate
In cities of less than 100,000 population not covered above, and
their immediate trading areas:
These minimum rates of pay shall apply only to common labor or
other totally unskilled labor.
For the purpose of this Schedule, Group A shall include the fol-
lowing states and portions of states: California, Connecticut, Maine,
Massachusetts, Montana, Nevada, New Hampshire, the portion of
New Jersey north of the counties of Mercer, Burlington, and Ocean,
New York, the portion of Oregon west of the counties of Wasco,
Jefferson, Deschutes, and Klamath, Rhode Island, Vermont, the
portion of Washington west of the counties of Okanogan, Chelan,
Kittitas, Yakima, and Klickitat., and Wyoming.
Group B shall include the following states and portions of states:
Arizona, Colorado, District of Columbia, Idaho, the portion of
Illinois north of the counties of Madison, Bond, Fayette, Effingham,
Jasper and Crawford, the portion of Indiana north of the counties
of Sullivan, Greene, Lawrence, Jackson, Scott, Jefferson and Swit-
zerland, Iowa, Michigan, Minnesota, Nebraska, the portion of New
Jersey not included in Group A North Dakota, Ohio, the portion
of Oregon not included in Group A, Pennsylvania, South Dakota,
Utah, the portion of Washington not included in Group A, and
Group C shall include the following states and portions of states:
Delaware, the portion of Illinois not included in Group B, the por-
tion of Indiana not included in Group B, Kansas, Maryland, and
the portion of Missouri north of the counties of Jasper, Lawrence,
Greene, Webster, Wright., Texas, Shannon, Reynolds, Wayne,
Stoddard, and Scott.
Group D shall include the following states and portions of states:
Kentucky, the portion of Missouri not included in Group C, the
portion of New Mexico not included in Group E, Oklahoma, the por-
tion of Texas not included in Group E, the portion of Virginia north
of the counties of Craig, Botetourt, Bedford, Amherst, Nelson, Albe-
marle. Louisa, Hanover, Caroline, Essex and Westmoreland, and
Group E shall include the following states and portions of states:
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, .the
trade area of Albuquerque, New Mexico, North Carolina, South Car-
olina, Tennessee, the portion of Texas east of the counties of Cham-
bers, Harris, Waller, Grimes, Madison, Leon, Freestone, Navarra,
Ellis, Kaufman, Hunt and Fannin, the trade areas of El Paso and
San Antonio, Texas, and the portion of Virginia not included in
Where a trade area falls partly in one group and partly in another,
the Code Authority shall have the power, subject to review by the
Administrator, to authorize deviations from the boundary line
between the two groups as above defined.
2. (b) The following minimum rates shall be established for the
following states and portions of states until July 1, 1934, or such
time thereafter as the Administrator, after due notice and hearing,
shall approve new minimum rates:
In Michigan, the portion of Indiana included in Group B, and the
portion of Pennsylvania south and west of the counties of Mercer,
Venango. Clarion, Jefferson, Clearfield, Centre, Huntingdon, Perry,
Cumberland, and York-ten percent (10%) less than the rates
specified in Schedule A.
2. (c) Should the rates specified in this Section of Article IV cause
an intolerable hardship on members of the trade in any trade area
the Code Control Board having jurisdiction, subject to review by
the Administrator, may allow a reduction not to exceed 10% from
such rates; such reductions to be effective for a period not to exceed
three months; and in any case to expire on or before July 1, 1934.
3. Sections 1 and 2 of this Article establish a minimum rate of pay
in any pay period, regardless of whether an employee is compen-
sated on a time rate, piecework, commission, or other basis.
4. There shall be an equitable adjustment of all wages above mini-
mum, and to that end, by July 1, 1934, the Code Authority shall
submit for the approval of the Administrator a proposal for ad-
justment in wages above the minimum. Upon approval by the Admin-
istrator, after such hearing as he may prescribe, such proposal shall
become binding as a part of this Code, provided, however, that in no
event shall hourly rates of pay be reduced.
5. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
6. No deduction from wages shall be made or permitted for the
hbuiing and/or boarding of any employee within a laundry estab-
lishment, or for the laundering of worker's uniforms soiled while
ARTICLE V-GENERAL LABOR PROVISIONS
1. No person under seventeen (17) years of age shall be employed
in the laundry trade. In any State an employer shall be deemed
to have complied with this provision if he shall have on file a cer-
tificate or permit duly issued by the authority in such State em-
powered to issue employment or age certificates or permits, showing
that the employee is of the required age.
2',In compliance with Section 7 (a) of the Act, it is provided:
(a) Employees shall have the right to organize and bargain col-
lectively 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 pur-
pose of collective bargaining or other mutual aid or protection.
(b) No employees and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
3. 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, sani-
tary or general working conditions, or insurance or fire protection,
than are imposed by this code.
4. Where a State law or orders promulgated thereunder provide a
higher minimum wage than is provided in this code, no person em-
ployed within that State shall be paid a wage below that required by
such State law or orders. Where such State law or orders affect only
females and/or male minors, the minimum rates specified for such
employees shall apply under this code to all employees, whether
male or female, so that such minimum rates shall apply equally to
employees of both sexes.
5. No employer shall reclassify employees or duties of occupations
performed or engage in any other subterfuge for the purpose of
defeating the purposes or provisions of the Act or of this code.
6. Every employer shall make reasonable provisions for the safety
and health of his employees at the place and during the hours of
SBee paragraph 2 of order approving this Code.
their employment. Standards for safety and health shall be sub-
mitted by the Code Authority to the Administrator within six. (6)
months after the effective date of this Code.
7. Every member of the trade shall display a placard adjacent to
the time clock, or employees' entrance, and at three (3) other promi-
nent locations in his place of business, stating the minimum wages
and the maximum hours of labor which govern the operations of said
ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
1. A Code Authority is hereby constituted to Administer this
2. (a) The Code Authority shall consist of from sixteen (16)' to
twenty-one (21) members of the trade, or such other number, as
may be approved from time to time by the Administrator, t9 be
selected as hereinafter provided. The Administrator, in his discre-
tion, may appoint not more than three (3) additional members
without vote to represent such groups or governmental agencies as
he may designate and to serve without expense to the laundry trade.
(b) The members of the Code Authority representing the trade
shall consist of sixteen (16) individuals who shall be members of
the Board of Directors of the National Association representing the
geographical districts of said association in the United States; and,
at the discretion of the Administrator, of not more than five (5)
members of the trade who are not members of the National Asso-
ciation to be appointed by the Administrator or selected in a manner
prescribed by him.
(c) In order that a Code Authority shall at a]l times be truly
representative of the trade 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
3. Each trade association directly or indirectly participating in
the selection or activities of the Code Authority or Code Control
Boards shall (a) impose no inequitable restrictions on member-
ship, 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 neces-
sary to effectuate the purposes of the Act. "
4. Any member of the trade shall be entitled to make use of the
insignia approved by the Administrator for the Laundry trade, and
to participate in and share the benefits of the activities of the Code
Authority and the Code Control Board having jurisdiction over his
trade area by assenting to and complying with the requirements of
this Code, and by either becoming a member of the National Asso-
cihtion and the 'Authorized Association serving his trade area or
paying his reasonable share of the expenses of the creation and
|. administration of this Code. Such reasonable share shall be deter-
mined by the Code Authority, subject to the right of review by the
Administrator, on the basis of volume of business and such other
factors as may be deemed equitable.
- 5. Nothing contained in this Code shall constitute the members of
the Code Authority or of any Code Control Board partners for any
purpose. Nor shall any member of the Code Authority or of any
Code Control Board be liable in any manner to anyone for any act of
any other member, officer, agent, or employee of the Code Authority
or Code Control Board. Nor shall any member of the Code Author-
ity or of any Code Control Board exercising reasonable diligence
in the conduct of his duties hereunder, be liable to anyone for any
act or omission to act under this Code, except for his own willful
misfeasance or nonfeasance.
6. The Code Authority shall have the following powers and duties
to the extent permitted by the Act:
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the trade with the provisions of the
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of this Code, in accord-
ance with the powers herein granted, and to submit the same to the
Adininistrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the
(c) To define trade areas and designate the boundaries thereof,
subject to the approval of the Administrator.3
(d) To establish a Code Control Board for any trade area, either
through the channels of such laundry trade associations as the Na-
tional Association may designate as Authorized Associations, or
through such individuals or groups as the Code Authority shall
designate, and to provide that each such board shall be truly repre-
sentative of the trade, and such other group or groups as the Code
Authority shall direct, within the trade area under its jurisdiction;
to designate the trade area over which each Code Control Board
shall have jurisdiction, subject to the approval of the Administrator;
and, to delegate to such boards such of the powers and duties reposed
in the Code Authority as may be necessary for the effective admin-
istration and enforcement of this code in their respective trade
(e) To choose from among its membership an executive committee
of not more than five (5) persons and to delegate to such executive
committee, during intervals between meetings of the Code Authority,
any of the powers and duties reposed in it by this Code, provided,
however, that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code.
SSee paragraph 3 (1) of order approving this Code.
4 Bee paragraph 3 (2) of order approving this Code.
The Chairman of the Code Authority shall be a member of the
Executive Committee; one member of such Committee shall be chosen
from anong those members of the Code Authority appointed-b: the
Administrator or selected in the manner prescribed by him as pro-
vided in Section 2 (b) of Article VI; one shall be chosen from those
elected by the States of Washington, Oregon, Montana, Wyoming,
Colorado, Utah, Idaho, California, Nevada, Arizona., Minnesota,
Nebraska, South Dakota, North Dakota, Wisconsin, Missouri, Kansas
and Iowa; one shall be chosen from among those elected by the States
of Texas, Oklahoma, New Mexico, Arkansas, Mississippi, Tennessee,
Alabama, Louisiana, Kentucky, North Carolina, South Carolina,
Georgia, Florida, District of Columbia, Maryland, Virginia and
West Virginia; and one shall be chosen from among those elected
by the States of Michigan, Indiana, Ohio, Massachusetts, Rhode
Island, Connecticut, Vermont, Maine, New Hampshire, New York,
New Jersey, Pennsylvania, Delaware and Illinois.
The representatives of the Administrator as appointed in Section
2 (a) of this Article, shall be notified of all meetings of the Execu-
tive Committee and may attend such meetings without vote.
(f) To revoke any delegation of any of its powers and duties
whenever it shall determine that they are not being fully or properly
(g) To coordinate and harmonize the activities of the various
Code Control Boards.
(h) To prescribe an equitable method of voting at meetings of
members of the trade participating in this Code.
(i) To delegate to any Code Control Board the power to estab-
lish uniform service names for laundry services, to define said serv-
ices, to establish a uniform method of billing such services, and to
prescribe their use within its trade area or areas.5
(j) To cause the Code Control Board, subject to the approval of
the Administrator, to establish and prescribe, after due notice to
members of the trade and to representatives of consumers and others
affected by this provision and a public hearing in each trade area at
which representatives of consumers and other groups affected thereby
shall be given an opportunity to be heard, fair and reasonable min-
imum wholesale and retail prices by trade areas for the several
services comprised within the definition of the laundry trade; such
minimum wholesale and retail prices to be sufficient to provide for
carrying out the purposes of the Act, to be consistent with mainte-
nance of the minimum standards of quality prescribed by the Code
Authority, to enable the trade to maintain the payment of at least
minimum wages herein established and other wages properly based
thereon, the furnishing of stable employment necessary to maintain
the trade, and such other considerations reasonably pertinent thereto.
In the event that any member of the trade complying with the pro-
visions of this code can show to the State Director of the National
Emergency Council nearest the locality within which such member
is situated, that his normal and usual price schedule, during the three
consecutive years prior to approval thereof, have been below the min-
imum prices established hereunder, and such fact shall have been
certified to the Code Control Board for the trade area in which he is
iSee painagraph .. (3) of order approving tVs Code.
located, such member shall not be required, by such established min-
imum prices to increase his said price schedule in excess of 20%;
nor thereafter to increase his former price schedule by more than
20% at any one time in order to comply with any revision of such
established minimum prices.
In the event that 30% of the votes cast by members of the trade
in any trade area, voting according to the method of voting pre-
scribed for the election of the Board of Directors of the National
Association, shall object to the prices so established for such trade
area, such prices shall be automatically suspended pending a further
hearing and restudy, and findings shall have been made by the Code
Control Board for such trade area sustaining such prices as fair and
reasonable minimum wholesale and retail prices, or establishing
revised prices, and the Administrator shall have approved such
prices first established or such revised prices.
Any minimum prices thus established may from time to time be
increased or decreased by the Code Authority, with the approval of
the Administrator, according to changing conditions.
Immediately after any such prices, increases, and/or reductions
have been approved by the Administrator, the Code Authority shall
take such steps as are reasonably calculated to notify all members of
the trade thereof. Such prices, increases and/or reductions shall go
into effect upon such date or dates as the Code Authority shall fix,
subject to the approval of the Administrator.5
(k) To adopt and prescribe minimum standards of quality for
each of the several types of service performed by the laundry trade,
and, to this end to cooperate with a committee to be selected by the
(1) One (1) active member of the National Association shall be
appointed by the Board of Directors of that Association.
(2) One (1) technician from the staff of the National' Association
shall be appointed by the Board of Directors of that Association.
(3) One (1) person may be appointed by the American 'Home
(4) One (1) technician (who may be selected from without the
trade, preferably from the United States Bureau of Standards) shall
be agreed upon by the three (3) persons appointed under the preced-
ing three (3) sub-paragraphs or, in the event they fail to agree, by
(1) To make studies and investigations of conditions and practices
current in the trade; to gather statistics from governmental and
other agencies; to require and secure from all members of the trade
in such form as the Code Authority may prescribe, such reports and
information as is reasonably pertinent to effectuate the purposes of
the Act and of this Code, for use of the Code Authority and the Ad-
ministrator in the administration and enforcement of the Code, and
for the information of the President; to compile, tabulate, publish,
and distribute reports based on such studies, investigations, statis-
tics, and information; to assist members of the trade participating in
this Code by developing improved methods for operations incidental
to and in connection with the laundry trade and a uniform system of
See paragraph 3 (3) of order approving tbis Code.
accounting and reporting. All individual' reports shall be kept con-
fidential and only general summaries thereof may be published.
(m) To promote, under the auspices of some impartial organiza-
tion, the formation of a Board of Arbitration in the jurisdiction of
each Code Control Board to settle unadjusted customer claims
against members of the trade which, by mutual consent of the inter-
ested parties, are presented to such Board of Arbitration.
(n) To require that all individual and group cost data, as may be
necessary under this Code, be ascertained, and costs allocated to the
various laundry services and articles in a manner approved by the
Code Authority. All such data shall be obtained by accountants
recognized by the Code Authority as qualified.
(o) In any trade area the members of the trade may, by agree-
ment of two-thirds of the total number of votes cast according to
the method of voting prescribed for the election of the Board of
Directors of the National Association, subject to the approval of
the Administrator, establish uniform hours for opening and closing
all retail outlets within such trade area which, when approved by
the Administrator or his deputy, shall be binding upon all members
of the trade within such trade area, provided, however, in no case
shall any retail outlet receive work from or deliver work to customers
before 5 A.M. or after 8 P.M. or on Sunday.
(p) To establish and prescribe, subject to the approval of the
Administrator, a uniform contract for the sale of laundry service
for resale to be used by all members of the trade.
(q) To designate any trade association or any other agency or
agencies to assist it in performing its duties herein prescribed.
(r) To cooperate with the Administrator in the establishment of
an advisory council for all textile maintenance service trades, to con-
sider and advise with the Administrator on matters of concern to two
or more such service trades operating under separate codes of fair
competition, and to appoint representatives of the laundry trade to
such advisory council.
(s) To initiate, consider, and make recommendations for the
modification or amendment of this Code."
7. In addition to the information required to be submitted to the
Code Authority as set forth in this Article, there shall be furnished
to government agencies such statistical information as the Adminis-
trator may deem necessary for the purposes recited in Section 3 (a)
of the Act.
8. If the Administrator shall determine that any action of a 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 investigation of the merits
of such action and further consideration by such code authority or
agency pending final action, which shall not be effected unless the
Administrator approves or unless he shall fail to disapprove after
30 days' notice to him of intention to proceed with such action in its
original or modified form.'
See paragraphs 3 (4) and 3 (5) of order approving this Code.
7 See paragraph 4 of order approving this Code.
AnTTL VII--TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of the laundry trade and are prohibited:
S-41. Fa'te Marking or Labeling.-The false marking or labeling of
asayauridry service which has a tendency to mislead or deceive cus-
tomers or prospective customers, whether as to the grade, quality;
finish, or otherwise.
'2. Misrepresentation or False or Misleading Advertising.-The use
(or participation therein) of, the publication or the broadcasting of
any untrue, deceptive, or misleading representation, statement, or
illustration, or the making of unfair competitive claims in connection
with and for the purpose of furthering the sale of laundry service.
3. Interference with Contractual Relations.-Maliciously inducing
or attempting to induce the breach of an existing contract between a
competitor and his customer or source of supply or interfering or
obstructing the performance of any such contractual duties or service.
4. Rebates.-The secret payment or secret allowance to any cus-
tomer, or to any employee of a customer of rebates, refunds, commis-
sions, credits, free laundry service, or unearned discounts, whether in
the form of money or otherwise, including the extension to certain
customers of special services or privileges, false invoicing, and rebates
under the guise of allowance for lost, misplaced, or damaged articles.
5. Unfair Merchandising Devices.-(a) The furnishing of free
work to anyone except an employee or a bonn fide charity.
Sb) The use of lotteries.
c) The use of coupon books, discount coupons or premiums.
d) The giving, permitting to be given or directly offering to give
free service, commissions, or any other consideration to any em-
ployee of any apartment house, club, or institution as an inducement
to secure or retain the patronage of customers residing therein.
The provisions of this section shall not, however, prohibit (1) the
use of coupon books, discount coupons, premiums, or certificates by
a member of the trade who was using such coupon books, discount
coupons, premiums, or certificates on the effective date of this Code,
under a subsisting and binding contract with a person not a member
of the trade, but only until the expiration of such contract, or (2)
the use of coupon books or of discount coupons provided the Code
Control Board in any trade area approves such use for all members
of the trade in such area.
6. Defamation.-The defamation of a competitor by falsely im-
puting to him 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 his service.
7. Espionage of Competitors.-Securing confidential information
concerning the business of a competitor by false or misleading state-
ment or representation, by false impersonation of one in authority,
by bribery, or by any other unfair method.
3. Imitation of Competitor.-The use or imitation of the trade
mark, trade name, slogan, or characteristic design or color scheme
of a competitor with the intention or having the tendency or
. capacity of deceiving the customers of such competitors.
9. Furnishing any Service, Material or Eq upment.-Rendering
any service other than laundry service or furnishing any materials
or equipment to anyone unless adequately compensated therefore.
10. Enticing Away Employees.-Maliciously enticing away an
employee of a competitor with the purpose and intent of unduly
hampering, injuring or embarrassing a competitor in his business.
Nothing herein shall prevent any employee from offering his services
to a competitor or prevent any member of the trade from employing
an employee of another member of the trade where the initiative in
such change of employment comes solely from the employee.
11. Selling For Resale.-(a) The sale of laundry services know-
ingly to anyone for resale who fails to comply with the provisions
of this Code and the rules, regulations and interpretations promul-
gated hereunder. (b) Selling laundry service at wholesale to any-
one for resale unless the charges for such wholesale laundry service
exceeds $20 per week, for each four week period.
12. Selling Below Minimum Prices.-The sale of any laundry
service in, or for delivery in, or for resale in, any trade area at less
than the minimum retail or wholesale price (as the case may be) for
such service as and when established for such trade area under the
provisions of Article VI, Section 6 (j) of this Code.
13. Selling Below Standard Quality.-The offering of any laundry
service to the public below the minimum standards of quality for
such service as and when prescribed by the Code Authority pursuant
to the provisions of Article VI, Section 6 (k) of this Code.
14. Extension of C'redit.-Requiring the extension of credit to any
customer by a route salesman unless the employer has authorized
such credit and assumed full responsibility for the payment thereof.
15. Posting of Insurance Infolnation.-Failure to display in a
conspicuous place a printed or written placard stating whether, to
what extent, and against what hazards articles accepted for launder-
ing are protected by insurance for the benefit of the customer.
16. Employee Deposits.-Failure of a member of the trade, who
receives from any employee a deposit in the nature of a security or
bond, to segregate from the assets of such member such deposit to be
held in trust from which no withdrawals are to be permitted except
for repayment to the employee or for payment to the employer for
obligations of the employee to the employer. Any such funds not
now so segregated shall be segregated at no later date than six (6)
months after the effective date of this Code.
ARTICLE VIII-MISCELLANEOUS OBLIGATIONS OF MEMBERS OF TIHE
1. When minimum prices shall have been established, as prescribed
in Article VI covering any or all services, every member of the trade
shall have available at all offices and vehicles from which delivery
to customers is made, a price list clearly defining such services and
such of the minimum prices as shall have been so established at
which such services are sold.
2. All offices or vehicles distributing laundry service not owned
or carrying the name of the member of the trade where the major
part of such laundry service is produced shall prominently display
either the term "Agency" or "Distributor" (as the case may be),
provided, however, that this section shall not become effective until
sixty (60) days after the effective date of this Code.
3. Every member of the trade shall display his name at each
office and on each vehicle owned and/or operated by him.
ARTICLE IX-MODIFICATIONS AND SUPPLEMENTS
1. The President may from time to time cancel or modify any
order, approval, license, rule or regulation, issued under the Act.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administrator
and such notice and hearing as he shall specify, and to become
effective on approval of the President.
3. Any authorized association may, with the approval of the Code
Authority, submit to the Administrator supplements to this Code
affecting any trade area or areas served by them, providing said
supplements carry out the purposes of Title I of the Act.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.
ARTICLE XI-EFFECTIVE DATE
This Code shall become effective on its approval by the President.
Approved Code No. 281.
Registry No. 1735-2-10.
UNIVERSITY OF FLORIDA
H 111 IIII U II 1 W II o1111 HL IN II 1111 H 111111WII ri
3 1262 08585 3165
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