UNIVERSITY OF FLORIDA
3 1262 08483 0206
Registry No. 274-1-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON OCTOBER 11, 1933
1. Executive Order
2. Letter of Transmittal
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CODE OF FAIR COMPETITION FOR THE THROWING INDUSTRY
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16th, 1933, for my approval of a Code
of Fair Competition for the Throwing Industry, and hearings hav-
ing been held thereon and the Administrator having rendered his
report containing an analysis of the said Code of Fair Competition,
together with his recommendations and findings with respect thereto,
and the 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 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 16th, 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 it is hereby, approved.
FRANKLIN D. ROOSEVELT.
THE WmTE HOUSE,
October 11, 1933.
HUGH S. JOHNSON,
OCTOBER 11, 1933.
To the PRESIDENT:
Submitted herewith is the report of the Hearing on the Code of
Fair Competition for the Throwing Industry in the United States,
as submitted by the Throwsters Research Institute, Incorporated, of
New York City, conducted in the Chinese Room of the Mayflower
Hotel, in Washington, D.C., on August 29, 1933, in accordance with
the provisions of the National Industrial Recovery Act.
The following papers are included and annexed:
1. Code as finally proposed.
2. Notice of Hearing.
3. By-Laws of the Throwsters Research Institute.
4. State of procedure.
5. List of witnesses.
6. Transcript of the records.
7. Statistical analysis.
8. Report of Deputy.
In accordance with the customary procedure every person who had
fil.1 a request for an appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
The Code which is attached was presented by duly qualified and
authorized representatives of the Industry, complying with the
statutory requirements, as representing 90% of total spindles in the
POSITION OF THE INDUSTRY
The industry consists of winding silk from the skein into thread
suitable for weaving, the hard twisting of silk and rayon into crepe
yarn and the doubling of these yarns associated with twisting.
The industry employs approximately fifty thousand (50,000)
persons and the annual charges for services rendered approximate
forty-seven million dollars ($47,000,000). Over sixty percent do
commission throwing. Of the weavers who do no commission
throwing eight hundred and forty-six thousand (846,000) have
accepted the code, and one hundred and seventy-eight thousand
(178,000) have not. For this 17.3% of the weavers who do no com-
mission throwing the code has been completely rewritten. This has
been done in an extreme effort to avoid regulating throwing as part
of the larger process of cloth manufacture and to avoid having rayon
mills operate under conflicting provisions.
In accepting this code the industry is actually placing itself at
a competitive disadvantage with the rayon weavers, whom it has
agreed to exempt. Until some coordination shall have been estab-
lished with respect to Textile Codes, this code will at least provide
an even wage rate for the Throwing Industry and will avoid inter-
fering with rayon mills' operation. It must be regarded as a
RESUME OF PROVISIONS OF TILE CODE
The Code provides for a minimum wage of 300 per hour in the
southern section and 321,2 per hour in the northern section and
provides a maximum working week of forty hours for productive
employees. Provision is made for limiting night work to a skeleton
shift of not over 35% of the largest day shift., to be males over
eighteen years of age and to receive a minimum of 400 per hour in
the southern section and 43.30 per hour in the northern section.
Mills throwing rayon for their own use exclusively are exempted
from this provision as well as from any recommendations which
might be made in the future as to further limitations on machine
Under minimum wages-learners are excepted.
The running of machinery between 7:00 A.M. Saturday and 6:00
A.M. Monday is prohibited except for mills throwing rayon ex-
clusively for their own use.
Hours are limited to forty hours except with respect to certain
maintenance categories for which forty-four hour employment is
Child labor is prohibited.
A representative committee is set up to cooperate with the Admin-
The Administrator finds that:
(a) This code complies in all respects with the pertinent provi.
sions of Title I of the Act, including without limitation subsection
(a) of Section 7 and subsection (b) of Section 10 thereof.
(b) The Throwsters Research Institute to be truly representative
of the Throwing Industry. The By-Laws of this Institute provide
no inequitable restrictions to membership.
(c) The code is not designed to promote monopolies or to elimi-
nate 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.
(d) Objections to the code have largely been met by altering
important provisions of the code so as to exempt from the applica-
tion of important provisions those mills for whom the throwing
of their own rayon yarn is part of a larger process of manufacture.
(e) Other provisions of the code are calculated to bring greater
orderliness into what has been a chaotic market.
I recommend that the code be approved.
HUGH S. JOHNSON,
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CODE OF FAIR COMPETITION FOR THE THROWING
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Throwing Industry during the period of
emergency as defined by the Federal Government.
SECTION I. The term throwing industry as used herein shall be
understood to embrace all plants of throwing machinery within the
United States whether owned and/or operated by commission throw-
sters or by those throwing material for sale or for their own use and
made of silk, rayon, or acetate yarns.
The term throwing machinery shall be understood to embrace
any machinery when used for the twisting of silk yarns and for the
twisting of single or multiple rayon or acetate yarns except only
original producers rayon or acetate yarns with seven turns or less per
inch and except sewing threads and except ply novelty twisted yarns
of the type of boucle, ratine and frille usually made on double feed
roll twisters. The term "throwing machinery" shall be further
understood to include winding, doubling, reeling, coning, copping,
and tubing machinery and other machinery conunonly used but only
when used in preparing said yarns for the twisting processes or in
packaging said threads after the completion of said twisting
The term employee shall mean all persons employed in the con-
duct of any branch of the throwing industry.
The term "productive employee as used herein shall include all
employees in the throwing industry except repairshop and cleaning
crews, engineers, electricians, firemen, supervising staff, office em-
ployees, shipping, watching, soaking, laboratory, and outside crews.
The term employer shall be understood to embrace any person,
partnership, association, corporation or trust, including trustees in
bankruptcy and receivers, engaged in the throwing industry.
The term "effective date' as used herein is defined to be the first
Monday after this Code is approved by the President.
SECTION 2-CONDITIONS OF EMPLOYMENT
SEc. II. (a) All employers shall comply with the requirements of
Section 7 (a) of Title I of the National Recovery Act, as follows:
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 other concerted activities for the purpose 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
3. Employers shall comply with the maximum hours of labor, min-
imum rates of pay, and other conditions of employment, approved
or prescribed by the President.
(b) On and after the effective date hereof no person under the
age of sixteen shall be employed in the Throwing Industry, provided,
however, that where a state law provides a higher minimum age, no
person below the age specified by such state law shall be employed
within that State.
(c) On and after the effective date, all employees of the Throw-
ing Industry, excepting bobbin and skein carriers, bobbin cleaners,
and learners as hereinafter defined shall receive a minimum wage
at the rate of 30 per hour when employed in the southern section of
the industry and at the rate of 321,' per hour when employed in
the northern section and under no conditions, by means of fines,
rebates or other methods, and regardless of whether the employees'
compensation is based on a time rate or piece work performance,
shall the actual pay received by employees be brought below the
minimum here named. The southern section of the industry shall be
understood to include only the following states: Texas, Oklahoma,
Arkansas, Louisiana, Mississippi, Alabama, Florida, Georgia, South
Carolina, Tennessee, North Carolina, Kentucky, Virginia, West Vir-
ginia, Maryland. At no time shall the total number of bobbin and
skein carriers and bobbin cleaners be in excess of 10% of the total
number of employees of the shift and the rate of pay of such casual
and incidental labor shall not be less than 80% of the minimum rate.
No employee shall receive for forty hours of labor less compensation
than he received or would have received as of April 1, 1933 for a
period not exceeding fifty hours per week.
On and after the effective date, a learner is hereby defined as one
who has worked less than twelve weeks in the throwing industry and
such learners shall be started at a minimum wage at the rate of
twenty (200) cents per hour. At the conclusion of the first six weeks
the said minimum shall be increased to twenty six (26) cents per
hour and at the expiration of the second six weeks period such em-
ployees shall no longer be classified as learners and shall receive not
less than the minimum wage rate then in force. Also, in order that
the status of every learner may at all times be clearly defined, and so
that such learner may be properly accredited with his or her time
of service upon seeking employment in another mill, the following
procedure shall be adhered to: Upon expiration of the first six weeks
of the learning period, and not before, the learner shall be given by
the employer a card bearing his*or her name, signed by the employer,
stating the time served as a learner, and the class of work upon which
such learner has been so engaged; and, upon expiration of the full
twelve weeks learning period, and not before, the said card shall be
exchanged for a second and similar card acknowledging that the
employee has served twelve weeks and is no longer a learner on the
class of work upon which he or she has been engaged. All cards so
defining the status of the employees referred to shall be in identical
form, said form to be prescribed by the code administration com-
The foregoing provisions as to hourly wage rates shall be subject
to the proviso 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.
(d) On and after the effective date hereof no productive em-
ployee shall work or be employed in the throwing industry for more
than forty hours in any one week.
1. On and after the effective date hereof, operation of throwing
machinery in any week shall be permitted only between the hours of
6 A.M. on Monday and 7 A.M. of the following Saturday; and such
operation of machinery shall further be subject to the following
limitations: Full working shifts shall be limited to two of not more
than forty hours each with the exception that a reduced force of
male operatives over 18 years of age and not to exceed 35 percent
of the total number working in all throwing processes on the larger
of the two full shifts may be employed as and when necessary dur-
ing the time when neither of the full shifts is working. THE
MINIMu-M hourly wage to be received by the productive employees
on this reduced force as referred to shall be at the rate of 40 cents
per hour when employed in the southern section of the industry and
at the rate of 43.3 cents per hour when employed in the, northern
section. The provisions of this subdivision (d) No. 1 with regard
to the operation of throwing machinery shall not apply to throwing
machinery in weaving plants operating under the Code of Fair
Competition for the Cotton Textile Industry, providing that the
yarn thrown is rayon or other synthetic threads for their own use
only in their own plants; but such excepted machinery shall not
operate more than 121 hours each week unless the Code of Fair
Competition for the Throwing industry shall be amended to allow
machine operation more than 121 hours each week.
2. Nonproductive employees, as excepted in defining productive
employee in Section I hereof, other than supervising staff, shall in
no case receive less than the minimum hourly wage herein prescribed
for productive employers; and may work not more than forty hours
in any one week excepting only that this working time for such
nonproductive employees may be extended to 44 hours when neces-
sary and may be further extended in emergency provided such
emergency work is duly reported monthly to the Code Administra-
tion Committee. Any employee working more than 44 hours in any
one week shall be paid one and one third times the hourly rate for
the hours worked over 44.
SEC. III. (a) On and after the effective date, each employer in the
throwing industry shall be obliged to post conspicuously in each
room in his mill or mills a printed notice, to be furnished by the
Throwsters Research Institute, which shall cite the several regula-
tions of this Code relating to hours, minimum wages, and learners.
Said notice shall further inform employees as to how and where to
report violations of the regulations of this Code. Every employer
in the throwing industry shall be obliged to admit at any time an
authorized representative of the Throwsters Research Institute to
check the fact that said notices are so posted and other regulations of
the Code strictly observed. The Labor Department in each State
will be requested by the Throwsters Research Institute to cooperate
by also checking the fact that the said notices are so posted and are
(b) Every employer shall use an accounting system which con-
forms to the principles of and is. at least as detailed and complete
as the standard and uniform method of costing to be formulated or
approved by the Code Administration Committee, with such varia-
tions therefrom as may be required by the individual conditions
affecting any employer or group of employers.
(c) With a view to keeping the President informed as to the
observance or nonobservance of this Code of Fair Competition and
any supplements thereto and as to whether the throwing industry
is taking appropriate steps to effectuate the declared policy of the
National Recovery Act, such employer shall be required to furnish
duly certified reports, in substance as follows, to the Throwsters
Research Institute in such form as may hereafter be required by said
Wages and Hours of Labor.-Returns every four weeks for Each
(1) Average number of employees in each shift.
(2) Minimum hourly wage paid to any employee.
(3M Maximum hours worked by any employee.
(4) Total pay roll and total pay-roll hours.
Machinery Data.-Returns every four weeks for Each Depart-
S(1) Number spindles in place.
(2) Average spindles operated during period.
(3) Total hours machinery operated each week in each depart-
Production Data.-Returns every week showing:
(1) Kind and amount of raw material put in work during the
(2) Description of throwing to be done.
(3) Price at which throwing was taken.
SEC. IV. To further effectuate the policies of the Act, a Code
Administration Committee is set up to cooperate with the Adminis-
trator as a Planning and Fair Practice Committee for the industry.
This Committee shall consist of twelve members in addition to the
President of the Throwsters Research Institute, Inc., who shall be
Chairman. The executive Secretary of the Throwsters Research
Institute, Inc., shall serve as Secretary of the Code Administration
Committee. There shall be at least one committee member chosen
from each of the following groups of employers-commission throw-
ster of weaving yarns, commission throwster of knitting yarns, rayon
and/or cotton weaver, knitter, yarn dealer and silk weaver.
The Code Administration Committee shall be chosen by vote by
the members of the Throwster Research Institute, Inc., and other
signers of this Code who shall have contributed, or agreed to con-
tribute to the cost of administration, an amount equal to the dues
they would pay were they members of the Throwsters Researchl
Institute, Inc. Each voter shall have one vote for each 5,000 spindles
or fraction thereof operated by him and registered with the Throw-
sters Research Institute, Inc.
The Administrator shall appoint an impartial representative or
representatives not to exceed three in number who shall have no
vote but shall in all other respects be members of the said Code
The Committee responsible for the formation of the Code, with
the representative or representatives of the NRA as provided for
herein, shall function as a Code Administration Committee hereunder
until the election of the Code Achninistration Committee is effected
and said election shall take place within six weeks after the final
approval of this Code.
Based on conditions in the industry as they may develop, the Code
Administration Committee shall present to the Administrator recom-
mendations which will tend to effectuate the operation of the pro-
visions of this Code and the policies of the National Recovery Act,
and in particular along the following lines:
No. 1. Recommendations that it shall be within the power of the
Code Administration Committee to further limit the machine hours
after a trial period of 90 days if in its judgment, and upon the oper-
ating records received, it shall have become apparent that the re-
sulting production is in excess of the needs of those who supply
material for processing by the throwing industry, and further there-
after to restore or amend such machine hours as may from time to
time become necessary. This provision for flexibility is essential
for the Throwing Industry because it has no command over volume,
being wholly dependent upon the demands and needs of the weaving,
knitting, and allied trades. This provision shall not apply to throw-
ing machinery provided the yarn thrown thereon is for the employers'
own use only in their own plants, and operating under the Cotton
No. 2. Recommendations that each employer who may wish to
purchase or build throwing machinery, and any individuals of cor-
porations desiring to establish plants of throwing machinery, may
do so only after having procured from the Administration permis-
sion for such purchase or erection or for such establishment of
plants; and the Code Administration Committee is hereby empowered
to act as the agent of the Administration to receive applications for
such permissions and to recommend the granting or withholding of
same; and it shall be the duty of the Code Administration Committee
in such proceeding to furnish the National Recovery Administration
with a full and duly authenticated statement of the facts upon which
,ts recommendation is based.
No. 3. Recommendation by the Code Administration Committee
after study of the number of spindles to be operated by an employee
on different classes of yarn upon the feasibility of establishing stand-
ards, to be reported to the National Recovery Administration.
Such recommendations, when approved by the Administrator, shall
have the same force and effect as any other provisions of this Code.
SECTION 5-CANCELLATION OR MODIFICATION BY THE PRESIDENT
SEC. V. 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 to
the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
SECTION 6--AMENDME NT
SEC. VI. Such of the provisions of this Code as are not required to
be included therein 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 contem-
plated that from time to time supplementary provisions to the Code
or Additional codes will be submitted for the approval of the Presi-
dent to prevent unfair and destructive competitive practices and to
effectuate the other purposes and policies of Title I of the National
Industrial Recovery Act.
SEC. VII. Upon receiving evidence that an employer has violated or
is violating any provision of this Code or of the National Industrial
Recovery Act, or is endeavoring directly or indirectly to defeat the
purposes of the Code and of the Act, the Code Administration Com-
mittee shall recommend to the Administrator that, provided the evi-
dence is regarded by him as adequate, the offending employer shall in
addition to any penalties or fine or imprisonment that may be im-
osed under the Act, be deprived of all use of the Blue Eagle