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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COTTON CLOTH GLOVE
AS SUBMITTED ON AUGUST 4, 1933
REGISTRY No. 235-1-01
The Code for the Cotton Cloth Glove 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
GOVERNMENT PRINTING OFFICE
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CODE OF FAIR COMPETITION OF THE COTTON CLOTH
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are submitted as a Code of Fair
Competition for the cotton cloth glove industry, and upon accept-
ance by the President shall be the standard of fair competition for
A. "Work Gloves" as used herein is defined to include canton
flannel, jersey, and leather combination work gloves and mittens.
B. "Person" as used herein includes any individual, firm, partner-
ship, or corporation.
C. "Manufacturer" or "Employer" as used herein includes any
individual, firm, partnership, or corporation manufacturing any or
all types of work gloves and selling the same.
D. "Association" as used herein refers to the National Associa-
tion of Cotton Cloth Glove Manufacturers.
E. "Commissioner" as used herein refers to the Commissioner of
the National Association of Cotton Cloth Glove Manufacturers.
F. "Industry" as used herein includes the making, manufacturing,
or producing and the selling of canton flannel, jersey, and leather
combination work gloves and mittens.
ARTICLE III-EMPLOYM ENT
A. Cl ld Labor.-Persons in the industry shall not employ anyone
under 16 years of age.
B. Wages and Hours.-Employers shall comply with the maximum
hours of labor and minimum rates of pay provided for herein. The
approved "Maximum Hours of Labor" and "Minimum Rates
of Pay" currently in effect hereunder are attached hereto as
. C. Working Conditions.-No employer shall maintain in his plant
standards of health and sanitation, maximum machine load of em-
ployees or other conditions relating to employment lower than the
standards approved and prescribed for the industry by the President
of the United States.
D. General Regulations.-All manufacturers shall comply with the
following specific provisions of Section 7 (a) of the National Indus-
trial Recovery Act:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor or their agents, in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection..
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization of
his own choosing and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of empolyment,
approved or prescribed by the President.
ARTICLE IV-MONTHLY REPORTS
With a view of keeping the President informed as to the observance
of this Code and as to whether this industry is taking appropriate
steps to effectuate the policy of the National Industrial Recovery
Act, each person engaged in the cotton cloth or work glove industry
shall furnish, monthly, duly certified reports in substance as follows
and in such form as may hereafter be provided:
A. Wages and Hours of Labor.-Reports showing number of persons
employed, wage rates in effect, and hours worked during the preceding
month in his plant or plants.
B. Production, Stocks, and Orders.-Reports showing the numbers,
in dozens, of canton flannel, jersey, and leather combination work
gloves and mittens produced the preceding month. Also total dozens
of gloves, by classification, on hand; unfilled orders in dozens by
clsssification; and any other information that may be required.
C. Learners and "Substaidard" Employees.-(1) Reports showing
the names of all persons presently employed as learners, together
with the date they entered the employ of said manufacturer, as well
as the names of all persons hereafter employed as learners, showing
the date such persons were employed.
(2) Reports showing the names of all persons presently employed
carried on the payrolls as "substandard" employees.
D. The National Association of Cotton Cloth Glove Manufacturers
is constituted the agency to collect and receive such reports.
ARTICLE V-UNFAIR TRADE PRACTICES
A. Discrimination.-It shall constitute unfair competition for a
manufacturer to discriminate in prices, terms, discounts, allowances,
guarantees, or in any other way between purchasers of the same class;
provided, however, that nothing in this Code shall be construed to.
prevent any manufacturer from selecting his own customers in bona
B. Secret Rebates.-Intentionally withholding from, or deliberately
inserting in the invoice, or other sales documents, facts which make
said documents false records, wholly or in part, of the transaction
represented on the face thereof, and/or the payment or allowance of
rebates, refunds, credits, unearned discounts whether in the form of
money or otherwise, or the extension to certain purchasers of services
or privileges not extended to all purchasers of the same class under
like terms and conditions, constitutes unfair competition.
C. Induciig Breach of Contract.-Inducing or attempting to induce
the breach of a contract between a competitor and his customer during
the term of such contract, constitutes unfair competition.
D. Repudiation of Contracts.-Repudiation of accepted orders and
other contracts, or their attempted cancellation except for legal cause
or by mutual consent, constitutes unfair competition.
E. Mlisrepresentation.-Advertising, selling, or offering to sell any
product with the intent to or effect of deceiving purchasers or pros-
pective purchasers as to the quantity, quality, grade, or substance of
such product shall constitute unfair competition.
F. Substit tion.-Shipping or delivering gloves which do not con-
form to the samples submitted and/or which do not conform to the
representations made prior to securing the order, constitutes unfair
G. False Statements.-The making of false statements with respect
to a competitor's prices, products, policies or practices shall constitute
H. Commercial Bribery.--To give, or permit to be given, or to offer
to give, directly or indirectly, money or anything of value to agents,
employees, or representatives, of purchasers or prospective purchasers
for the purpose of influencing their employers or principals or pros-
pective employers or principals to purchase from the profferor or to
refrain from purchasing from competitors of the profferor, shall
constitute unfair competition.
I. Concessions.-Allowing or offering to allow commissions, allow-
ances, rebates, extra discounts, premiums, or concessions of any
character to any customer or any individual or organization repre-
senting or acting for customers or groups of customers, constitutes
J. Commissions.-Allowing a commission or extra discount or a
concession in price to a jobber or retailer on his own purchases because
he acts as a salesman or manufacturer's agent for the sale of gloves
to others if said jobber or retailer receives a salary and/or a commis-
sion, constitutes unfair competition.
K. Pirating.-Copying the styles, names, numbers, and/or patterns
originated by a competitor and selling such gloves below the published
prices of the originator, constitutes unfair competition.
ARTICLE VI-MIARKETING POLICIES
A. Invoices.-All sales shall be invoiced at the time of shipment and
such invoices shall clearly and accurately state all the essential ele-
ments of the sale. Copies of invoices, together with credit memo-
randa and all other sales documents shall be filed with the commis-
sioner as and when directed by the Association, and, in the event of
a complaint, sworn copies of invoices, credit memoranda and all
other sales documents shall be sent immediately to the commissioner
upon his request. Failure to comply with any of the provisions of this
rule shall constitute unfair competition.
B. Defective Products.-It shall constitute unfair competition for a
manufacturer to allow credit for claims or deductions until the facts
of such claims or deductions have been established by an authorized
representative of the manufacturer or the merchandise against which
the claims have been made as being defective has been returned to
C. Consignments.-It shall constitute unfair competition for any
manufacturer to consign stocks of gloves to wholesalers, retailers
and/or others. All consigned stocks in existence at the time this Code
becomes effective shall be entirely liquidated as soon as practicable
and within a period not to exceed 90 days therefrom or at the expira-
tion of contracts existing on that date which by their terms cannot
be terminated within 90 days, copies of all such contracts shall be
filed with the commissioner of the Association.
D. Warehousing.-It shall constitute unfair competition for any
manufacturer to warehouse gloves for the account of any one
E. Samples.-It shall constitute unfair competition for any manu-
facturer to send samples of gloves to any wholesaler at the whole-
saler's request without making the proper charge therefore. Used
samples shall not be returned for credit.
F. Classification of Customers.-Customers 'shall be classified as
wholesalers, retailers, and consumers according to the position in the
distributive process which they occupy respectively, and deviations
from such classification in the establishment or quotation of prices,
discounts, credit terms, allowances or other conditions of sale shall
constitute unfair competition.
For the purposes of this Code, a "Wholesaler" is defined as an
individual, partnership, or corporation who has a proper investment
in his business, who buys in bulk quantities, who maintains a suffi-
ciently complete stock of gloves to meet all normal requirements, and
whose major business is selling to retailers.
A "Retailer" is defined as an individual, partnership, or corporation
who has a proper investment in his business, who buys in bulk quan-
tities, who maintains a sufficiently complete stock of gloves to meet
normal requirements, and whose major business is selling to consumers.
All other purchasers or prospective purchasers are defined as con-
sumers. Any of the above classes may be further subdivided on the
basis of volume of purchases or any other valid distinction.
ARTICLE VII-CONDITIONS AND TERMS OF SALE
A. Selling below Cost.-It shall constitute unfair competition for any
manufacturer to sell his product (except discontinued lines or close-
outs) below a reasonable standard cost of producing and marketing
B. Terms of Sale.-It shall constitute unfair competition for any
manufacturer to sell his products on any basis more favorable than
the terms, discounts, allowances, and conditions provided herein.
The approved terms, discounts, allowances, and conditions currently
in effect hereunder from time to time are attached hereto as
C. Published Prices.-Each manufacturer shall publish his prices
applicable to that class or subclass of purchasers to whom he sells for
the various types of products, including in such price lists or in sup-
plementary writings, copies of which shall be filed with the commis-
sioner, all of his conditions of sale. It shall constitute unfair compe-
tition for any manufacturer to sell his products (except on discontinued
lines or close-outs) to anyone for any purpose at any prices or on any
terms or conditions other than those indicated in his published
This rule shall be construed in the light of and be subject to Section
A of Article VII.
D. Close-outs.-Discontinued lines, distress merchandise, or close-
outs may be sold by any manufacturer at less than his published
prices provided such merchandise is acknowledged by the comnis-
sioner of the Association to be distress merchandise 'and shall be
disposed of subject to the commissioner's approval. Invoices for
such sales shall clearly be marked "Special Prices on Account of
E. Bundles or Cartons.-There shall be no price differential for
gloves shipped in bundles as against those shipped in cartons. Where
gloves are packed in less than dozen packages, whether in bundles or
cartons, a charge of two cents per dozen shall be made to cover this
F. Printing.-Where manufacturers are requested by wholesalers
to print the name or brand of their (wholesaler) customers on gloves,
the manufacturer shall make a minimum charge of $1.25 for any
quantity of fifty dozen or less and on fifty-one dozen or more the
printing charge shall be two and a half cents per dozen. There shall
also be a charge made for all cuts and electros.
G. Quotations.-Basing quotations of weights for cotton cloth
gloves on other than thirty-three to thirty-four inch flannels consti-
tutes unfair competition.
ARTICLE VIII-EXISTING CONTRACTS
Where the costs of executing contracts entered into in the work
glove industry prior to the presentation to Congress of the National
Industrial Recovery Act are increased by the application of the
provisions of that Act to the industry, it is equitable and promotive
of the purposes of the Act that appropriate adjustments of such
contracts to reflect such increased costs be arrived at by arbitral
proceedings or otherwise, and the Code Authority, the applicant for
this Code, is constituted an agency to assist in effecting such adjust-
ARTICLE IX-ADMINISTRATION AND ENFORCEMENT
A. Presidential Control.-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 Recov-
ery 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 ormodifyhis approval
of this Code or any conditions imposed by him upon his approval
B. Monopolies.-No provisions of this Code shall be interpreted
or applied in such a manner as to-
1. Promote monopolies,
2. Permit or encourage unfair competition,
3. Eliminate or oppress small enterprises, or
4. Discriminate against small enterprises.
C. Representation.-There shall be an Emergency National Com-
mittee of the National Association of Cotton Cloth Glove Manufac-
turers consisting of twelve members which shall be appointed by the
President of the Association. Only one representative from any one
Company or Corporation shall be appointed on the Emergency
National Committee. (A subsidiary, or any company in which another
Company is financially interested, is considered a part of the parent
D. A Code Authority for the cotton cloth glove industry shall be
established for the purpose of administering this Code. The Code
Authority shall be constituted as follows:
(1) The Emergency National Committee shall select 5 members.
(2) The Administrator shall select 2 members (one representative
of labor, and one of the consumers' interests).
The Code Authority shall have such powers under it as are provided
herein and may be delegated from time to time by the Administrator.
E. The Emergency National Committee may establish divisions of
the industry and the Code Authority shall appoint appropriate sub-
committees for the administration of this code in each division.
F. The Code Authority from time to time shall make such recom-
mendations to the Administrator, including amendments to the Code
as in their judgment shall aid the effective administration of the Code,
and which may be necessary to effectuate the purpose of Title I of the
National Industrial Recovery Act. The Code Authority may con-
sider proposals of the industry to amend the code, or may initiate
such amendments, and these amendments shall become effective as
provisions of this Code when approved by the President.
G. The Code Authority may investigate, or cause to be investigated
on its own initiative or on complaint filed with it, any violation of this
code by any person in the industry. The Code Authority may
provide a procedure for conducting hearings and shall grant to all
persons interested in the subject matter of any investigation or com-
plaint, a fair and reasonable opportunity to appear and be heard.
After an investigation or hearing, the Code Authority shall present a
written report to the Administrator which shall include findings of
fact and its recommendations.
ARTICLE X-EFFECTIVE DATE
This Code shall become effective on the 2nd Monday after it is
approved by the President of the Unitd States.
ARTICLE XI-SEPARABILITY CLAUSE
If any provision of this Code, or the application thereof to any
person or circumstances, is held invalid, the remainder of the code,
and the application of such provision to other persons or circum-
stances, shall not be affected thereby.
In witness of our approval of the foregoing Code, we hereunder set
our hands and seals as of this ------day of -------------, A. D.
(Name of Company)
------------------- By --------------------
MAXIMUM HOURS AND MINIMUM WAGES
Referred to in Section B, Article III, shall be as follows:
No employer shall employ any person for more than five days of
eight hours each per week, or a total of 40 hours per week, with the
exception of from July 1 to November 1 there shall be a 10% tolerance,
but the average for any calendar year shall not exceed 40 hours per
The following employees are excepted from the foregoing:
1. Persons in a managerial, executive, or supervisory capacity in
office or factory who receive compensation of $35 per week or more,
together with their immediate assistants and secretaries; all such
persons to be listed with the commissioner.
2. Employees on emergency, maintenance and repair work, watch-
men, outside salesmen, and truckmen; such workers shall be paid at
least time and one third for hours worked in excess of the maximum.
No employer shall pay any worker less than the following rates of
compensation, except learners for a learning period of 24 weeks, during
which period learners shall receive the regular piecework rates cur-
rently in effect, with a guarantee of $6 per week, and presently
employed "substandard" workers, who shall receive the regular
piecework rates currently in effect. The number of "substandard"
employees employed in any plant shall not exceed at any time more
than 10% of the total number of employees of that particular plant
and their names, together with the names of all learners, shall be
recorded with the commissioner. (See Article IV, Section C.)
Factory or Mechanical Workers or Artisans
Skilled male glove workers (scrap-leather cutters are classed as unskilled Per hour
help) --------------------------------------------------- $0.40
Skilled female glove workers- -------------------------------- .32%
Unskilled workers-------------------------- -------------------- .30
Office Employees Per week
Men and women over 21 years of age ---------------------------- $15
Boys and girls under 21 years of age ----------------------------- 12
Referred to in Section C, Article VIII, for the cotton cloth glove
industry, shall be as follows:
Terms, Manufacturer to Wholesaler.-Terms from manufacturer to
wholesaler shall be 2% cash discount twenty days, with net of forty
days from date of shipment. No more favorable terms shall be
given or allowed except after June 15th at the manufacturer's option
and to facilitate shipments during the heavy delivery season, in-
voices may be dated as September first with 2% twenty days, forty
Terms, Manufacturer to Retailer.-Terms from manufacturer to
retailer shall be 2% cash discount ten days, with net of thirty days
from date of shipment. No more favorable terms shall be given or
allowed except gloves for fall delivery may, after June 1st, at the
manufacturer's option and to facilitate shipments during the heavy
delivery season, be invoiced as of October first with 2% ten days,
thirty days net.
A. Freight Shipments.-Freight charges shall not be allowed on
any shipment or drop shipment to any purchaser or consignee on
less than one hundred pounds nor shall there be any concession nor
allowance of. any sort in lieu thereof.
B. Express Shipments.-On gloves shipped by express (regardless
of weight) the manufacturer may allow only the equivalent of freight
charges to any purchaser.
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