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Registry No. 1333-1-08
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON OCTOBER 3, 1933
1. Executive Order
2. Letter of Transmittal
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CODE OF FAIR COMPETITION FOR THE TEXTILE 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 my approval of a Code
of Fair Competition for the Textile Machinery Manufacturing
Industry, and hearings have been held thereon and the Adminis-
trator having rendered his report containing an analysis of the said
Code of Fair Competition together with his recommendations and
findings with respect thereto, and the 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 approve the report and recommendations and adopt
the findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
HUGH S. JOHNSON,
SEPTEMBE 21, 1933.
The White House.
MY DEAR MR. PRESIDENT: I have the honor to submit and recom-
mend for your approval the Code of Fair Competition for the
Textile Machinery Manufacturing Industry.
The following exhibits are included or attached:
1 Final Code Submitted
SNotice of Hearing
3 Statement of Procedure
44 Transcript of the Records
5) Statistical Analysis of the Division of Economic Research
(6) Report of Deputy
An analysis of the provisions of the Code has been made by the
Administration. I find that the Code complies with the require-
ments of Clauses 1 and 2, Subsection (a) of Section 3 of the National
Industrial Recovery Act.
I am, my dear Mr. President,
Very sincerely yours,
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR THE TEXTILE
MACHINERY MANUFACTURING INDUSTRY
SECTION 1. The terms the Textile Machinery Manufacturing In-
dustry and "the Industry ", as used herein, are defined to mean the
manufacture for sale of complete machines and parts thereof and
accessories therefore used in textile establishments for the actual
manufacture of yarn and/or woven fabrics or for finishing or dyeing,
whether as a final process or as a part of a larger and further process.
SEC. 2. The term "employee ", as used herein, includes any person
engaged in any phase of the Industry, in any capacity, in the nature
of employee irrespective of the method of his compensation.
SEC. 3. The term employer ", as used herein, includes anyone for
whose benefit such an employee is so engaged.
SEC. 4. The term members ". as used herein, is defined to include
natural persons, partnerships, associations, or corporations.
SEC. 5. The term President ", as used herein, is defined to mean
the President of the United States of America.
SEC. 6. The term Code ", as used herein, is defined to mean the
within Code as approved by the President or as amended, revised,
or altered pursuant to the provisions hereof and of the National
Industrial Recovery Act.
SEC. 7. The term" the National Industrial Recovery Act ", as used
herein, is defined to mean the Act approved by the President on
June 16, 1933, and the term "Administrator ", as used herein, is de-
fined to mean the administrator duly appointed and acting under
SEC. 8. The term "effective date ", as used herein, is defined to
mean the second Monday after the approval of this Code by the
SEC. 9. The term "Association ", as used herein, means National
Association of Textile Machinery Manufacturers, an existing asso-
ciation for the benefit of all members of the Industry located within
the United States.
ARTICLE II-PURPOSE OF THE CODE
SECTION 1. The Code is adopted pursuant to Title I of the Na-
tional Industrial Recovery Act.
SEC. 2. The purpose of the Code is to effectuate the policy of
Title I of the National Industrial Recovery Act.
ARTICLE III-PARTICIPATION IN THE 'CODE
Participation in the endeavors of the Association relative to
revisions or additions to this Code shall be based on the following:
(1) payment of the pro-rata share of the cost and administration
of the Code by becoming a member of the Association; or (2) pay-
ment of an equitable pro-rata share of the expense of the adminis-
tration of the Code (such pro-rata share to be determined on the
basis of the number of persons employed).
ARTICLE IV-LABOR PROVISIONS
(1) 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.
(2) 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 organization
of his own choosing; and
(3) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
On and after the effective date, employers in the Industry shall
not employ any person under the age of sixteen (16) years; pro-
vided, however, that where a State law provides a higher minimum
age, no person below the age specified by such State law shall be
employed within that State, and, provided further, that no em-
ployee between sixteen (16) and eighteen (18) years of age shall
work on or in connection with any metal or woodworking, or other
moving machinery, or on heat process, or in any other hazardous
SECTION 1. On and after the effective date, the minimum wage
that shall be paid by employers in the Industry:
(a) To accounting, clerical, and office employees, shall be at the
rate of not less than $14.00 per week; and
(b) To all other employees (except outside helpers and shippers
south of the Potomac River, learners during their initial 90 days,
apprentices, and watchmen), shall be at the rate of not less than 35
cents per hour, regardless of whether the employee's compensation
is otherwise based on a time rate or upon a piece-work performance.
(c) There shall be an equitable adjustment of wages above the
minimums herein prescribed to the end that, so far as may be equit-
able, the differentials which now exist between the wage rates paid
to skilled workers and those paid to unskilled labor shall be at least
(d) It is further provided that where a State law provides a
higher minimum wage no person employed within that State shall
be paid a wage below that required by such State law.
The minimum wage that shall be paid by employers in the In-
dustry to outside helpers and shippers south of the Potomac River,
learners during their initial 90 days, apprentices, and watchmen,
shall be not less than the hourly rate which prevailed for the same
class of labor on July 15, 1929, and in any event not less than 30 cents
ARTICLE VII-HouHs OF WORK
SECTION 1. On and after the effective date, employers in the Indus-
try shall not operate on a schedule of hours of labor for their
employees (except executives, supervisory staff, receiving more than
$35.00 per week, and outside salesmen) in excess of 40 hours per
week; provided, however, that during any period in which a concen-
trated demand upon any division of the Industry shall place an
unusual and temporary burden for production upon its facilities an
employee of such division may be permitted to work not more than
48 hours per week in not more than 8 weeks of any six months'
period; provided, however, that the total hours of work shall not
average more than 40 hours per week in any six months' period.
Where in any case an employee not expressly excepted above is
worked in excess of 8 hours per day, time and one half shall be paid
for the excess hours so worked.
SEC. 2. Repair and maintenance crews, engineers, and electricians
may, on and after the effective date, work a tolerance of 10 percent
in excess of the aforesaid maximum hours per week; provided, that
time and one half shall be paid for the excess hours so worked.
SEC. 3. No employee shall be regularly employed more than six
(6) days in any seven-day period.
SECTION 1. To effectuate the policies of Title I of the National
Industrial Recovery Act, a Code Authority is hereby designated to
cooperate with the Administrator as a Planning and Fair Practice
Agency for the Textile Machinery Manufacturing Industry. This
Code Authority shall consist of nine representatives of the Textile
Machinery Manufacturing Industry elected by a fair method of selec-
tion to be approved by the Administrator. This Code Authority
may also consist of not more than three members, without vote, to be
appointed by the President of the United States. Such agency is
designated for the purpose of administering, supervising, and pro-
moting the performance by employers of the provisions of this Code
and for otherwise effectuating the policy of the Act.
The Code Authority shall issue and enforce such rules and regula-
tions, impose upon employers such restrictions, with the approval
of the Administrator, and designate such agents and delegate such
authority to them as may be necessary or convenient to effectuate the
purposes of this Code and the Act. The Code Authority may make
such rules as to meetings, notices, waivers of notices, and other
procedural matters as it may from time to time determine. The Code
Authority may, to such extent as it may determine, act by. and
through such divisions of the Industry as it may designate (based
upon groupings of members having a common interest and common
problems) and representative committees of such divisions.
SEC. 2. To further effectuate the policies of Title I of the National
Industrial Recovery Act, the Code Authority is constituted the
Industry's agent to cooperate with the Administrator with respect
to future planning and fair practice. The Code Authority may
from time to time present to-the Administrator recommendations
based on conditions in the Industry as they may develop from time to
time which will tend to effectuate the operation of the provisions of
the Code and the policy of Title I of the National Industrial
Recovery Act. Such recommendations, when approved by the
Administrator, shall have the same force and effect as any other
provisions of this Code.
SEC. 3. The Code Authority is also authorized to cooperate with
the Administrator in making investigations as to the functioning
and observance of any of theprovisions of this Code and to report
them to the Administrator.
SEC. 4. The Code Authority is also authorized to investigate and
inform the Administrator on behalf of the Industry, in the manner
provided in Clause 3 (e) of the National Industrial Recovery Act,
with respect to the importation of competitive articles.
SEC. 5. Members shall furnish to said Code Authority, in such
form and at such intervals as said Code Authority may prescribe,
such reports of information and statistics regarding the working
hours of employees and the wages of employees as said Code Au-
thority shall require.
Members of any division designated by said Code Authority shall
furnish to the committee chosen from and representing their divi-
sion, as and when requested by such committee, reports with respect
to prices, discounts, terms of sale, sales, and other allied matters
concerning that part of the business of said members which qualifies
them for said division; such reports to be in such form and to cover
such intervals of time as the committee may from time to time
determine. Except as otherwise provided in the National Industrial
Recovery Act, reports furnished in accordance with this paragraph
shall be confidential, and the data of one employer shall not be
revealed to any other employer; provided, however, that for the
purpose of administering or enforcing this Code the Code Author-
ity, through its duly authorized representatives, shall have access
to any and all such reports.
SECTION 1. If any employer under this Code is also an employer
of labor in any other Industry, the provisions of this Code shall
apply to and effect only that part of his business which is included
in the Textile Machinery Industry.
SEC. 2. Violation by any member of the Industry of any pro-
vision hereof or of any approved rule or regulation issued hereunder
is an unfair method of competition.
SEC. 3. No provision of the Code shall be interpreted or applied
in such a manner as to promote monopolies, permit or encourage
unfair competition, or eliminate, oppress, or discriminate against
ARTICLE X-TRADE PRACTICE
SECTION 1. No builder of textile machinery shall sell or exchange
in the United States market, except in fulfilment of contracts
formed before the effective date, any product (not secondhand) of
its manufacture at a price, or upon terms or conditions, that will
result in the customer paying therefore less than the seller's cost, as
determined in accordance with standard accounting practices. In
the event that complaint shall be made by a member of the aforesaid
Code Authority, alleging violation of this paragraph by a member of
the same division of the Industry, said Code Authority shall appoint
a special committee to investigate and report.
SEC. 2. No person shall sell a machine, or parts therefore, copied or
duplicated by such person from a machine, or parts therefore, made
by an established builder of textile machinery, at a selling price
under the reasonable cost.
SEC. 3. Agents and/or importers of foreign manufacturers of tex-
tile machinery, sold in the United States in competition with textile
machinery made by domestic manufacturers, shall be subject to all
provisions of this Code covered by Articles VIII and X.
SEC. 4. Secret rebates, of every kind and however accomplished,
are absolutely prohibited.
SEC. 5. Transportation charges: All machinery shall be sold f.o.b.
SEC. 6. Sales for cash: The purchase price shall be payable not
later than thirty (30) days from date of shipment.
SEC. 7. Sales on deferred payments (except as provided in Section
8 below) : The Purchase price, in any contract with respect to ma-
chinery sold in the United States market, shall be payable as follows:
The initial cash payment on account of said price shall be not
less than 25% of said price and shall be paid not later than 30 days
from date of shipment; the balance of the purchase price shall be
payable over a period not in excess of two years following the average
date of shipments under such contract. The rate of interest pay-
able on such deferred payments shall not be less than 5% per annum.
Stocks or bonds of the purchaser shall not be accepted as payment,
in whole or in part, of the purchase price.
No machinery shall be sold on terms other than cash, unless the
title to or a lien on such machinery is retained by the seller until
the purchase price therefore shall have been paid in full.
SEc. 8. With the unanimous approval of his divisional committee,
any employer may sell on deferred payments on terms other than
those provided in Section 7 above.
SEc. 9. Arbitration: The use of arbitration in the settlement of
commercial disputes between employers or between buyers and sellers
under the arbitration rules of the American Arbitration Association
is recognized as an economical and effective method of adjusting
ARTICLE XI-AMENDMENT, CANCELLATION, AND TERMINATION
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provision of Clause 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under Title I of said Act, and specifically
subject to the right of the President to cancel or modify his approval
of this Code or any conditions imposed by him upon his approval
SEC. 2. Such of the provisions of this Code as are not required to
be included herein by the National Industrial Recovery Act may,
with the approval of the President, be modified or eliminated as
changes in circumstances or experience may indicate. It is con-
templated that from time to time supplementary provisions to this
Code or additional codes will be submitted for the approval of the
President to prevent unfair competition in price and other unfair
and destructive competitive practices and to effectuate the other pur-
poses and policies of Title I of the National Industrial Recovery
Act consistent with the provisions hereof.
SEC. 3. This Code shall continue in effect for a period of ninety
(90) days after the effective date and thereafter until terminated as
hereinafter provided. Subject to statutory provisions then in effect,
this Code may be terminated at any time after said ninety-day period.
When so terminated, all obligations and liabilities under the Code
shall cease, except those for unpaid dues and assessments theretofore
The undersigned does hereby certify that the foregoing is a true
copy of the Code of Fair Competition for the Textile Machinery
Manufacturing Industry submitted to the Administrator under the
National Industrial Recovery Act, as amended by authority of Code
Sub-Committee of the Textile Machinery Manufacturing Industry.
B. H. BRsTow DRAPER.
SEPTEMBER 8, 1933.
NOTICE OF HEARING No. 45
NATIONAL RECOVERY ADMINISTRATION,
August 18, 1933.
TEXTILE MACHINERY MANUFACTURING INDUSTRY
The above industry, as represented by the National Association of Textile
Machinery Manufacturers claiming to represent 90 percent of the Industry,
has submitted a proposed Basic Code of Fair Competition, copies of which are
available at the office of the National Recovery Administration, Room 4519,
Department of Commerce, Washington, D.C.
The code for the Textile Machinery Manufacturing 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.
Notice is hereby given that a Public Hearing on this Code will be conducted
by the Administrator, beginning at 10 A.M.. Friday. August 25, 1933, in the
Caucus Room of the Senate Office Building, Washington, D.C., and continuing
until completed. An opportunity to be heard (either in person or by duly
appointed representative either by appearance or by sending a written or
telegraphic statement) will be given to persons or groups who can show a
substantial interest as workers, employers, consumers, or otherwise, in the effect
of any provision of the proposed Code.
Those wishing to be heard must comply with the following simple require-
(1) A written or telegraphic request for an opportunity to be heard must be
filed before noon on Thursday. August 24, 1933, with the Administrator, Room
4422, Department of Commerce, Washington, D.C.
(2) Such request shall state the name of (a) any person seeking to testify
in the hearing, and (b) the persons or groups whom he represents.
(3) Such request shall contain a statement setting forth without argument
a proposal: (1) for the elimination of a specific provision of the Code; or (2)
a modification of a specific provision, in language proposed by the witness; or
(3) a provision to be added to the Code in language proposed by the witness.
(4) At the Public Hearings all persons are regarded as witnesses and shall
present orally facts only and not argument. Written briefs or arguments may
be fi'ed, but oral presentations will be confined to factual statements only.
(5) In the discretion of the Deputy Administrator in charge of the Hearing,
persons who have not complied with the requirements of paragraph (1) above
may be permitted at any time prior to the close of the Hearing to file written
statements containing proposals for eliminations from, modifications of, or
additions to the code supported by pertinent information or argument. Such
written statements must be condensed as much as possible.
Public Hearings are solely for the purpose of obtaining in the most direct
manner the facts useful to the Administrator, and no arguments twill be heard
or considered at this time. Representation of interested parties by attorneys
or specialists is permissible, but it is not to be regarded as necessary. Industry,
workers, and the consuming public will be represented by special advisers
employed by the Government.
HUGH S. JOHNSON,
MALCOLM Mum, Deputy Administrator.
STATEMENT OF PROCEDURE-LIST OF WITNESSES
SEPTEMBER 7, 1933.
I, WILLrIA H. CLFF, the duly elected Secretary of NATIONAL AssOCIATIoN OF
TEXTILE MACHINERY MANUFACIURERS, hereby certify that the following named
persons are at this date the duly elected and qualified Directors of said
J. E. Butterworth (H. W. Butterworth & Sons Co.), B. H. B. Draper (Draper
Corporation), D. F. Edwards (Saco-Lowell Shops), R. A. Leeson (Universal
Winding Co.), E. H. Peirce (The Atwood Machine Co.), S. F. Rockwell (Davis
& Furber Machine Co.), E. K. Swift (Whitin Machine Works), C. F. Tilling-
hast (Textile Finishing Machy. Co.), J. F. Tinsley (Crompton & Knowles Loom
And I further certify that the following named Directors are at this date the
duly appointed and qualified subcommittee of said Board of Directors with
respect to obtaining the approval of a Code of Fair Competition for the Textile
Machinery Manufacturing Industry by the President of the United States:
B. H. B. Draper, Chairman; David F. Edwards.
And I further certify that B. H. Bristow Draper, the Chairman of said sub-
committee, has been, by action of said subcommittee, appointed to act for said
subcommittee, with all the powers of said subcommittee.
And I further certify that National Association of Textile Machinery Manu-
facturers consists at this date of concerns employing over 91% of the labor
employed in the industry.
WILLIAM H. CuIT,
Subscribed and sworn to before me this 7th day of September 1933.
[SEAL.] ROBERT CUTLE,
SEPTEMBER 7, 1933.
WE, B. H. BRIsTow DRAPER (Chairman) and DAVID F. EDWARDS, the duly
appointed subcommittee of the Board of Directors of NATIONAL AssooCATION or
TEFXTIT MACHINERY MANUFACTURERS, with power to act in behalf of said
Association with respect to obtaining the approval of a Code of Fair Competi-
tion for the Textile Machinery Manufacturing Industry by the President of
the United States, under the National Industrial Recovery Act, hereby appoint
and constitute the said B. H. Bristow Draper to act for said subcommittee, with
all of the powers of said subcommittee, in all matters connected with such Code
of Fair Competition, any and all alterations in, eliminations from, and amend-
ments to said Code of Fair Competition, and the execution of a Code of Fair
Competition, in such form as said Draper shall approve, for and in behalf of
said National Association of Textile Machinery Manufacturers.
B. H. BRisTow D~APE,
DAVID F. EDWARDS.
Subscribed and sworn to before me this 7th day of September 1933.
[SEAL.] ROBERT CUTLER, Notary Public.
SEPTEMBER, 7, 1933.
I, WILLIAM II. CLIFF. the duly elected Secretary of NATIONAL AssocIraow or
TEXTILE MACHINERY MANUFACTURERS, hereby certify that at the organization
meeting of said Association, held pursuant to due notice on August 1, 1933, at
10: 15 o'clock A.M., at the Cop'ey Plaza Hotel, Boston, Massachusetts, at which
meeting there were present all of the organizing members of the Association,
being a quorum for the transaction of business, the following resolution was
Toted.-That the draft of Code of Fair Competition for the Textile Machinery
Manufacturing Industry, as presented to this (the organization) meeting of
National Association of Textile Machinery Manufacturers, be recommended to
the Board of Directors of the Association for approval and adoption, pursuant
to the By-Laws of said Association, subject to such alterations, eliminations,
and amendments as the Board of Directors (acting through such subcolnmittee
or subcommittees as it may appoint) may approve and/or the President of
the United States may require; and that the Board of Directors be authorized
and empowered, for and on behalf of the Association, said Board acting
through such subcommittee or subcommittees as it may appoint, forthwith to
make due application, under the provisions of the National Industrial Recovery
Act, for the approval of said Code by the President of the United States, and
to take all necessary and advisable action in all matters connected with such
application and such approval, any hearings which may be held with respect
thereto, and any and all alterations in said Code or eliminations therefrom or
And I further certify that at a Special Meeting of the Board of Directors of
said Association, held pursuant to due notice on August 25, 1933, at 12: 15
o'clock P.M., at the Caucus Room, Senate Office Building, Washington, D.C.,
at which meeting there were present all of the members of the Board of Direc-
tors, being a quorum for the transaction of business, the following resolution
was unanimously adopted:
Voted.-To approve in behalf of National Association of Textile Machinery
Manufacturers, pursuant to authority delegated to this Board by said Associa-
tion at its organization meeting held on August 1, 1933, the proposed Code of
Fair Competition for the Textile Machinery Manufacturing Industry (Third
Revision), as presented to this meeting and filed with the records thereof,
subject to such alterations, eliminations, and amendments as the President of
the United States or his duly constituted and acting representative may require
and/or as this Board, or the duly authorized subcommittee of this Board, may
approve; and to confirm and continue the appointment of B. H. Bristow Draper
and D. F. Edwards, as a subcommittee of this Board, to act in behalf of said
Association with respect to obtaining the approval of said Code by the Presi-
dent of the United States, under the National Industrial Recovery Act, and to
represent and act for this Board and said Association in all matters connected
with said Code, any hearings which may be held with respect thereto, and any
and all alterations in, eliminations from, and amendments to said Code.
And I further certify that the draft of Code of Fair Competition for the Textile
Machinery Manufacturing Industry, attached to this Certificate, is the Code
of Fair Competition for the Textile Machinery Manufacturing Industry recom-
mended (as set forth in the vote first certified above) by National Association
of Textile Machinery Manufacturers for approval and adoption, as duly altered
and amended by the Board of Directors of said Association pursuant to said
vote, and is the same as the Code of Fair Competition for the Textile Machinery
Manufacturing Industry (Third Revision) approved in the vote last certified
WILLIAM H. CI.r,,
Subscribed and sworn to before me this 7th day of September 1933.
[SEAL.] ROBERT CUTER,
LIST OF WITNESSES PUBLIC HEARING NO. 45
TEIxTI~ MACHINERY MANUFACTURING INDUSTRY
B. H. Bristow Draper, President Draper Corporation; Edwin C. Smith, Presi-
dent Rhode Island Warp Stop Equipment Co.; Richard S. Newham, International
Association of Machinists; and W. W. Britton, Metal Polishers Union.
REPORT BY TBH DIviSION OF EcoNOMI RESEARCH AND PLANNING
(Attached to original copy)
UNIVERSITY OF FLORIDA
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