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UNIVERSITY OF FLORIDA
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3 1262 08482 9927
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SCALLOP CUTTING INDUSTRY
AS SUBMITTED ON AUGUST 26, 1933
REGISTRY No. 231-3-03
The Code for the Embroidery Thread and Scallop-Cutting 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
0 E OOUR PART
GOVERNMENT PRINTING OFFICE
For sale by ihB Superinleadent of Documents, Washington, D.C. .. Price 5 cents
CODE OF FAIR COMPETITION FOR THE EMBROIDERY
THREAD & SCALLOP CUTTING INDUSTRY
ARTICLE 1-THE INDUSTRY
The Co-operative Embroidery Thread & Scallop Cutters' Associ-
ation is hereby declared to be the industrial association truly repre-
sentative of the Embroidery Thread & Scallop Cutters and others
engaged in this industry, and as such, dedicated to the purpose of the
National Industrial Recovery Act.
Any concern engaged in such industry shall be eligible to member-
ship in said Association, subject to its acceptance of its proportionate
share of the cost and responsibility as well as the benefit of such
"Industry" shall include Embroidery Thread Splitting by machin-
ery and/or by hand, Embroidery Thread Cutting by machinery
and/or by hand, Scallop Cutting by machinery and /or by hand, lace
cutting by machinery and/or by hand, lace making-up by machinery
and/or by hana, making up of embroidered yard goods by machinery
and/or by hand, cutting out of embroidery by exclusive hand process
and Embroidery straight cutting by machinery and/or by hand.
"Concerns" shall include any individual, partnership, firm or cor-
poration engaged in this industry (and shall include therein proprie-
tors, partners, officers or directors, when lawfully representing a con-
"Act" shall include the National Industry Recovery Act and all
amendments and supplements thereto.
"Service" shall include Thread-Cutting, Thread-Splitting, Scallop-
Cutting, Lace-Cutting, Lace Making-up, embroidered yard-goods
making up, straight-cutting of embroidery and any other work,
labor or services done by any concern.
"Association" shall mean the Co-operative Embroidery Thread &
Scallop Cutters' Association, a corporation not for pecuniary profit,
organized and existing under the laws of the State of New Jersey.
"Board of Trustees" shall mean the Board of Trustees of the Asso-
"By-Laws" shall mean the By-Laws of the Association.
"Effective date" means five days after the code shall have been
approved by the President of the United States.
"Employees" shall include all unskilled persons employed in this
industry and shall specifically exclude supervisors, foremen, fore-
ladies, office staff, chauffeurs, and watchmen.
"Productive Machinery" shall include only Thread-Cutting
Machinery, Thread-Splitting Machinery and Scallop-Cutting Ma-
This code shall be in operation as to the whole industry in order to
establish fair and adequate wages and working hours of labor, elimi-
nate unfair trade practice, and promote cooperative action within the
industry to the end of rehabilitating the same.
(a) Any concern in the industry, which accepts its share of the cost
and responsibility as well as the benefits of such participation may
become a member of the Association. No initiation or entrance fee
shall be charged, but there shall be dues, levied on such basis as may
from time to time be fixed by the board of trustees thereof.
(b) Within the Association each member concern which shall have
paid its dues in accordance with the By-Laws shall be entitled to one
vote as provided under Article 2, Section 3, of the By-Laws as follows:
"Each and every member of the Association shall be entitled to but
one vote on any question, such vote to be cast by the individual
member, a member of the firm, an officer of the corporation, or the
duly accredited representative of the above, as the case may be."
(a) Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing and shall be free
from the interference, restraint, or coercion by employers of labor or
their agents in the designation of such representatives or in self-organ-
ization or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
(b) 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
(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 of the United States.
(1) On and after the effective date employers in this industry shall
operate on a schedule of hours for labor for their employees not in
excess of 40 hours per week except that during the spring and fall
seasons employers may operate an additional two hours per day, for
5 days a week, for a period of 12 weeks in each season, but in no event
shall any work be done on Saturday or Sunday or after 6:30 in the
evening of any day.
(2) Employees shall not be required to work more than.8 hours a
day for 5 days a week except during the spring and fall seasons as
above set forth (Article 5 (c)), when employees may be required to
work 10 hours per day for 5 days per week, but in no event shall any
employee be required to work on Saturday or Sunday.
(3) The regular working hours during the months when 40 hours
shall be the maximum hours of work per week shall be from 8 A.M.
to 12 Noon and from 1 P.M. to 5 P.M. The regular working hours
during the months when 50 hours shall be the maximum hours of
work per week shall be from 7:30 A.M. to 12 Noon and from 1 P.M.
to 6:30 P.M. There shall be only one shift in any 24-hour period
and all overtime work is expressly prohibited.
(4) The Board of Trustees is hereby authorized by resolutions by
them to be adopted, to designate the opening and/or closing of the
Spring or Fall seasons and by resolutions by them to be adopted sub-
ject to the approval of the Administrator of the Act shall designate
and control any changes in the hours of work for employees in this
(5) On and after the effective date employees listed below shall be
paid an hourly wage not less than the following:
Thread Cutting and Thread Splitting Machine Operators -------------- $0. 60
Thread Cutters & Thread Splitters Machine Helpers ------------------ 35
Scallop Cutting Machine Operators ---------------------------------- 45
Thread Splitters by hand --------------------------------- ----- .35
Hand Cutters .----------._--------- ---------------------- -. 30
All unskilled female help including learners and apprentices ---------- .25
(6) On and after the effective date employers in this industry shall
not employ any person, under the age of 16 years.
(7) On and after the effective date, employers of this industry shall
be prohibited from placing work of any kind to be done at homes of
employees, including cutting out embroidery, and/or home cutting,
and/or lace cutting, and/or lace or embroidery making up or winding.
Giving out home work of any kind to anyone is strictly prohibited.
(8) The number of learners or apprentices in any one factory shall
not exceed 10 percent of the total number of employees on the weekly
payroll of that factory. Their wages shall be progressively increased
so that their earnings shall conform to the minimum wage scale at
the end of one year of such employment.
(a) No concern shall directly or indirectly, as proprietor, partner,
stockholder, officer, director, employee or otherwise, so long as the
act shall remain in effect, enlarge the floor space of its physical plant
(except for non-productive purposes and then only with the consent
of the board of trustees) nor install productive machinery unless the
same is now installed in a plant belonging to a concern now or pre-
viously engaged in the industry and is bought with the approval of
the board of trustees, provided that nothing herein contained shall
prevent the repair or replacement of existing machinery or the im-
provement of processes within the plants of any concern if the ma-
chinery replaced shall be scrapped under the supervision of the asso-
ciation within three months from the date of its replacement. Per-
mission to install additional productive machinery may be granted
by a two-thirds vote of all members of the Association.
(b) Effective from the final approval of this code by the President
of the United States, no concern not now engaged in this industry
shall operate any productive machinery unless it shall first have
secured permission so to do from the administrator, following an
investigation of such concern by the Board of Trustees, and a report
as to whether or not such operation will tend to effectuate the said
policy of the act.
(a) The board of trustees is hereby authorized, by resolution by
them to be adopted, to secure, distribute, and exchange price informa-
tion, and may require the filing with the Association of duplicate
invoices by each concern, without limitation of power.
(b) The board of trustees is hereby empowered to establish a com-
mittee of its own members and to employ such other persons as may
seem to them fit and proper to accomplish the purpose hereof.
(c) Upon the request or direction of the board of trustees, all con-
cerns shall promptly forward and file with the Association such statis-
tical data and information, including copies of duplicate invoices and
any and all other data which in its judgment may be necessary ade-
quately to inform all concerns regarding market conditions and also
any such data and information as may be required for the supervision
and operation of the code of ethics.
(d) The Association is hereby constituted the agency to secure,
distribute and exchange such statistical data and information.
(e) Effective on the final approval of this code by the President, of
the United States, the board of trustees is authorized to require each
concern to file with the secretary a list of the prices thereafter to be
quoted for each of the several services rendered by it. Concerns
shall not quote or make prices other than those filed until five days
after filing with the secretary a new list of prices. Any quota tion of
prices in violation of the provisions hereof (when effective) shall be
deemed an unfair competitive practice, unless the board of trustees
or the price committee thereof shall have approved such quotations
The plant and books of accounts of all concerns, in this industry
shall be open to inspection by one or more neutral, disinterested per-
sons selected by the board of trustees, at such time and under such
conditions as may be determined by resolutions to be adopted by the
board of trustees from time to time. The board of trustees is hereby
authorized with the approval of the President of the United States,
hereafter to amend this code by the incorporation herein of the whole
or any part of said resolution or resolutions.
(a) Effective upon the final approval of this code by the President
of the United States, the board of trustees is hereby authorized by
resolution by them duly to be adopted, to install or cause to be
installed throughout the industry in the plant of each concern, books
and records of a uniform system of cost accounting which will result
in obtaining by each concern and by the association the costs of
production, exclusive of any allowance for depreciation or obsoles-
(b) Pending the completion of the installation of such a system of
cost accounting throughout the industry, but only after such final
approval by the President of the United States, the board of trustees
is hereby authorized to fix basic costs exclusive of depreciation and
obsolescence for each type of service rendered by any concern in the
(c) No concern shall sell below cost, exclusive of depreciation and
obsolescence as determined by the board of trustees, pursuant to
resolution for the time being or by the cost accounting when installed
Effective upon the final approval of this code by the President of
the United States, the Board of Trustees, after receiving the advice
and cooperation of the members of the association, is authorized and
directed upon request of two thirds of the membership of the associa-
tion, but not sooner than six months after the effective date, except
with the earlier approval of the President of the United States, in the
exercise of their best judgment, to determine what shall be fair and
(a) All concerns engaged in the industry shall abide by a code of
ethics hereafter to be adopted by the board of trustees to eliminate
unfair competitive practices. Such board of trustees is hereby
authorized, with the approval of the President of the United States,
hereafter to amend this code of fair competition by the incorporation
therein of the whole or any part of such code of ethics, or any amend-
ment thereof which may be later adopted by such board.
(b) Charges for each of the several services rendered by the indus-
try: The said Board of Trustees thereafter shall have power from
time to time to change the charges for any of the said several services.
Such service charges once so determined and published shall con-
stitute and truly represent the minimum charges effective in all
transactions for each of the several services rendered by the industry.
Effective upon the final approval of this code by the President of the
United States, any person who shall knowingly violate or induce
another to violate the code of fair competition or code of ethics of this
or any other industry, or be an accessory to such violation, shall be
guilty of an unfair competitive practice.
Effective upon the final approval of this code by the President of the
United States, all members of the association shall, by virtue of their
membership, be deemed collectively to have been licensed to do
business in this industry under the act from and after the effective
date. All concerns not members of the association shall, promptly
following the effective date, obtain and procure from the adminis-
trator a license, subject to the approval of the board of trustees, to
engage or continue in business, which shall be conditioned upon the
obligation of such concern to comply with each and all of the provisions
of this code and the amendments thereof and supplements thereto.
Further to effectuate the policies of this act, the Board of Trustees
as now constituted or as it may thereafter be constituted, in addition
to the other powers herein specifically conferred, is hereby designated,
from time to time, to present to the administrator recommendations,
based upon conditions in the industry as they may develop, which will
tend to effectuate the operations of the provisions of this code and the
policies of this act, along the following lines:
(a) Recommendations for the requirement by the administrator of
licensing and registration of persons engaged in the industry not
members of the association, to be made effective as speedily as can
conveniently be done, to the end that the provisions of the code may
become immediately operative.
(b) Recommendations for the making of rules by the administrator
as to practices by persons engaged in the industry, as to methods and
conditions of trading, to prevent and eliminate unfair and destructive
competitive prices and practices.
(c) Recommendations for the requirement by the administrator of
registration by concerns of their productive machinery.
(d) Recommendations for dealing with any inequalities that may
otherwise arise that may endanger the stability of the industry and/or
production and employment.
(e) Such recommendations, when approved by the administrator,
shall have the same force and effect as any other provisions of this
code. The Board of Trustees shall likewise cooperate with the
administrator in making any and all investigations as to the changing
and observance of any of the provisions of this code at its own instance
or upon complaint of any concern in the industry.
(f) The Board of Trustees shall investigate the matter or matters
complained of and report its finding and recommendations to the
administrator for appropriate disposition.
Effective upon the final approval of this code by the President of
the United States, the board of trustees is hereby authorized, by reso-
lution by them to be duly adopted, to define, construe or interpret
the provisions hereof and to promulgate any administrative measure
intended to effectuate any of the foregoing provisions of this code and,
with the approval of the President of the United States, may here-
after amend this code by the incorporation herein of the whole or any
part of such resolution.
The board of trustees hereafter may with the approval of the
President of the United States amend or supplement this code by a
two-thirds vote, provided that the incorporation herein of any reso-
lution of the board of trustees pursuant to the provisions of articles 8
and 11 may be authorized by majority vote of such board.
(a) Pending the final approval of this code by the President of the
United States, the board of trustees shall not exercise the power
vested in it by articles 6, 7, 8, and 11 hereof, except with the approval
of the administrator.
(b) Acting pursuant to authority, the undersigned representing
in excess of 80 percent of the Embroidery Thread & Scallop Cutting
Industry, hereby submit this code.
THE CO-OPERATIVE EMBROIDERY THREAD & SCALLOP
CUTTERS ASSOCIATION INCORPORATED,
By RUDOLPH GRAF,
Representing United Thread Cutting Co., West New York, N.J.
By MAYER KATZ,
Representing Embroidery Thread Cutting Co., West New York, N.J.
By EUGENE RUSTERHOLZ, Jr.,
Representing E. Rusterholz Thread Cutting Co., Union City, N.J.
By FRED F. BUESSER,
Representing Progressive Cutting Corp., Guttenberg, N.J.
By VICTOR EDELMANN,
Representing Solar Swiss Scallop Cutting Co., Union City, N.J.
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