UNIVERSITY OF FLORIDA
3 1262 08482 9745
Registry No. 299-35
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
COVERED CARPET PADDING
AS SUBMITTED ON AUGUST 30, 1933
The Code for the Covered Carpet Padding 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
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
THE COVERED CARPET PADDING MANUFACTURERS ASSOCIATION
SUGGESTED CODE OF FAIR COMPETITION FOR THE
COVERED CARPET PADDING INDUSTRY
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THE COVERED CARPET PADDING MANUFACTURERS ASSOCIATION
To effectuate the policy of Title I of the National Indfstrial Re-
covery Act, during the period of the emergency, by reducing and
relieving unemployment, improving the standards of labor, eliminat-
ing competitive practices destructive of the interests of the public,
employees, and employers, relieving the disastrous effects of over-
capacity, and otherwise rehabilitating the covered carpet padding
industry and by increasing the consumption of industrial and agri-
cultural products by increasing purchasing power, and in other re-
spects, the following provisions are established as a code of fair
competition for the covered carpet padding industry:
The term "covered carpet padding industry" as used herein is
defined to mean the manufacture of padded, quilted, paper, and/or
cloth covered carpet and rug linings and stair pads. The term
"employees" as used herein shall include all persons employed
in the conduct of such operations. The. term "productive ma-
chinery as used herein is defined to mean carpet lining, sewing
and quilting machines, garnetts, lappers, pickers, stitching, and bend-
ing machines, and cloth-cutting machines. The term "effective
date as used herein is defined to be August 28, 1933, or if this code
shall not have been approved by the President one week prior thereto,
then the second Monday after such approval. The term "persons"
shall include all natural persons, partnerships, associations, and
On and after the effective date, the minimum wage that shall be
paid by employers in the covered carpet padding industry to any
of their employees, except learners during a six weeks' apprentice-
ship, cleaners, and outside employees shall be not less than forty
cents per hour unless the hourly rate for the same class of work
on July 15, 1929, was less than forty cents per hour, in which latter
case the minimum wage shall not be less than the hourly rate on
July 15, 1929, and in no event less than thirty cents per hour.
The amount of differences existing prior to August 15, 1933, be-
tween the wage rates paid various classes of employees (receiving
more than the established minimum wage) shall not be decreased.
In no event, however, shall any employer pay any employee a wage
rate which will yield a less wage over a work week of 40 hours than
such employee was receiving for the same class of work for the
longer week of 48 hours or more prevailing prior to August 15,
It shall be a function of the Planning and Fair Practice Agency
provided for in Article VIII of the Code to observe the operation
of these provisions and recommend such further provisions as experi-
ence may indicate to be appropriate to effectuate their purposes.
On and after the effective date, employers in the covered carpet
padding industry shall not operate on a schedule of hours of labor
for their employees-except repair-shop crews, engineers, electri-
cians, firemen, office and supervisory staff, shipping, watching and
outside crews, and cleaners-in excess of forty hours per week, but
there shall be no limitation on shifts or machine-hours.
On and after the effective date, employers in the covered carpet
padding industry shall not employ any minor under the age of
With a view to keeping the President informed as to the observ-
ance or nonobservance of this Code of Fair Competition, and as to
whether the covered carpet padding industry is taking appropriate
steps to effectuate the declared policy of the National Industrial
Recovery Act, each person engaged in the covered carpet padding
industry will furnish on request duly certified reports in substance
as follows and in such form as may hereafter be provided:
(a) Wages and Hours of Labor.-Returns every four weeks show-
ing actual hours worked by the various occupational groups of
employees and minimum weekly rates of wages.
(b) Reports of Production, Stocks, and Orders.-Weekly returns
showing production in yards and bales in each of the staple classes or
broad divisions of the industry; finished yards or bales on hand,
both sold and unsold; and unfilled orders stated in yards or bales.
Rayford W. Alley, of 111 Broadway, New York, is constituted tem-
porary secretary of the Association and the agency to collect and
receive such reports.
To effectuate the policies of the Act the following practices have
been agreed upon:
(a) The minimum hourly rate of wages herein set down shall be
posted in easily legible form in each person's place or places of
manufacture in a conspicuous place where it can be readily seen by
each employee and by representatives of the Association.
(b) All persons in the covered carpet padding industry shall
register their productive machinery with the secretary of the Asso-
ciation and no additional productive machinery shall be installed by
members of the Association unless except by the approval of the
Board of Directors.
(c) The Secretary of the Association and, or his duly authorized
representative only with the consent of the board of directors shall
have free access to the plants, books, and records of the members of
the Association for the purpose of determining and reporting on the
industry and the observance of the Code by members of the Asso-
(d) No merchandise to be shipped on consignment.
(e) Sale of merchandise to retailers to be sold on standard terms-
5/10 or 4,10-60 Ex.
(f) There shall be no rebate or any advertising allowance or con-
cessions of any kind, either direct or indirect, to retailers regardless
(g) Selling below cost.-It is agreed that no manufacturer will
sell his regular merchandise at a net price or net prices below his
(h) Selling below cost is unfair competition.
(i) The Board shall appoint a supervising agency to determine a
mean cost for the industry.
Mean costs may be adjusted from time to time by the Board as
(j) Mean costs are to include all items of expense such as mate-
rials, labor, manufacturing expense, administration expense, selling
expense, and a reasonable charge for the use of capital invested.
(k) Mean costs so determined by the Board will be binding on all
covered carpet padding manufacturers.
(1) All statistical data and reports submitted by employers under
-this code will be held confidential and to this end the Board of
Directors shall engage an outside and independent agency to act as
a clearing house for all such confidential information none of which
shall be available to any member of the Board of Directors, the books
of account and records, files and other data of every employer will
be available at all times during the regular business hours for inspec-
tion by the representatives of the supervising agency to be engaged
by the Board of Directors.
(m) Violation by any manufacturer of any of the provisions of
this code or of any approved rule issued thereunder is an unfair
method of competition.
(n) This code is not designed to promote monopolies. The pro-
visions of this code shall not be so interpreted or administered as
to eliminate or oppress small enterprises or to discriminate against
(o) Filing of Specification-n.-No manufacturer shall introduce
and offer for sale during any season any grade of merchandise
unless the specifications for such grade have been filed by him with
the Association thirty days prior to his intention of offering such
grade to the general trade.
(p) Copying of Grades.-Each manufacturer agrees that he will
not produce in an inferior grade a copy of a running line grade
produced by any other manufacturer.
(q) Invoicing and Marking.-Each manufacturer agrees that the
merchandise shipped to his customers will be correctly described
and priced on the invoices which are issued covering such merchan-
(r) Return Milerchandise.-All sales of merchandise shall be final
and no manufacturer shall accept the return of any merchandise,
either for exchange or credit, except where the quality of the mer-
chandise is in question.
(s) Definition of Wholesalers.-A wholesaler is an organization
who carries a stock of representative lines of any manufacturer for
resale purposes to the retail trade only.
(t) Compensation for Losses.-No manufacturer shall guarantee
any retail or wholesale distributor against, or compensate him for
any losses arising through the sale of the products of this industry.
(u) Donations.-It shall be considered as unfair competition for
any manufacturer to make any donation or contribution in the form
of cash, credit, advertising, or other gratuitous consideration to any
(v) Protection.-Each manufacturer agrees that price protection
or stock protection will not be extended to retail dealers or whole-
sale distributors in the event of any decline in prices. It is agreed,
also, that no manufacturer will sell or consign his merchandise to
any distributor who does not conform to the above practice.
(w) Selling at Published List Prices.-Upon the adoption of this
Code no manufacturer shall sell any regular merchandise for less
than his published list prices.
(x) Wholesaler Relations.-It shall be a condition of sale on the
part of any manufacturer to any wholesaler that the wholesaler in
the distribution of that manufacturer's product shall strictly ad-
here to resale terms and prices issued to the retailer by the manu-
facturer whose merchandise he is selling.
(y) All quotations of prices are to be f.o.b. the point of
To further effectuate the policies of the Act, the covered carpet
padding industry committee, the applicants herein, or such suc-
cessor committee or committees as may hereafter be constituted by
the action of the signers of this proposed Code, is set up to cooperate
with the Administrator as a planning and fair practice agency for
the covered carpet padding industry. Such agency 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 this
Code and the policy of the National Industrial Recovery Act, and
in particular along the following lines:
1. Recommendations as to the requirements by the administrator
of such further reports from persons engaged in or proposing to
engage in the covered carpet padding industry of statistical infor-
mation and keeping of uniform accounts as may be required to
secure the proper observance of the Code and promote the proper
balancing of production and consumption and the stabilization of
the industry and employment.
2. Recommendations for the setting up of a service bureau for
engineering, accounting, credit, and other purposes to aid the mem-
bers of the covered carpet padding industry in meeting the condi-
tions of the emergency and the requirements of this Code.
3. Recommendations (1) for the requirement by the Adminis-
trator of registration by persons engaged in or proposing to engage
in the covered carpet padding industry of their productive ma-
chinery, (2) for the requirement by the Administrator that prior
to the installation of additional productive machinery by persons
engaged or engaging in the covered carpet padding industry, except
for the replacement of a similar number of existing productive
machinery to bring the operation of existing productive machinery
into balance, such persons shall secure certificates that such installa-
tion will be consistent with effectuating the policy of the National
Industrial Recovery Act during the period of the emergency, and
(3) for the granting or withholding by the Administrator of such
certificates if so required by him.
4. Recommendations for changes in or exemptions from the pro-
visions of this code as to the working hours of machinery which will
tend to preserve a balance of productive activity with consumption
requirements, so that the interests of the industry and the public may
be properly served.
5. Recommendations for the making of requirements by the Ad-
ministrator as to practices by persons engaged in the covered carpet
padding industry as to methods and conditions of trading, the nam-
ing and reporting of prices which may be appropriate to avoid dis-
crimination, to promote the stabilization of the industry, to prevent
and eliminate unfair and destructive competitive prices and
6. Recommendations for regulating the disposal of distress mer-
chandise in a way to secure the protection of the owners and to
promote sound and stable conditions in the industry.
7. Recommendations as to the making available to the suppliers
of credit to those engaged in the industry of information regarding
terms of and actual functioning of any or all of the provisions of
the code, the conditions of the industry, and regarding the opera-
tions of any and all of the members of the industry covered by such
code, to the end that during the period of emergency available credit
may be adapted to the needs of such industry considered as a whole
and to the needs of the small as well as the large units.
8. Recommendations for dealing with any inequalities that may
otherwise arise to endanger the stability of the industry and of pro-
duction and employment.
Such recommendations, when approved by the Administrator,
shall have the same force and effect as any other provisions of this
Such agency is also set up to cooperate with the Administrator in
making investigations as to the functioning and observance of any
of the provisions of this Code, at its own instance or on complaint
by any person affected, and to report the same to the Administrator.
Such agency is also set up for the purpose of investigating and
informing the Administrator on behalf of the covered carpet pad-
ding industry as to the importation of competitive articles into the
United States in substantial quantities or increasing ratio to domes-
tic production on such terms or under such conditions as to render
ineffective or seriously to endanger the maintenance of this Code and
as an agency for making complaint to the President on behalf of the
covered carpet padding industry, under the provisions of the Na-
tional Industrial Recovery Act, with respect thereto.
Where the costs of executing contracts entered into in the covered
carpet padding 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 pro-
motive 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 Covered Carpet Industry Com-
mittee, the applicant for this Code, is constituted an agency to assist
in effecting such adjustments.
Employers in the covered carpet-padding industry shall comply
with the requirements of the National Industrial Recovery Act as
"(1) 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; (2) 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 (3) that employers shall comply with the maximum
hours of labor, minimum rates of pay, and other conditions of
employment, approved or prescribed by the President."
This Code and all the provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provisions
of Clause 10 (b) of the National Industrial Recovery Act, and 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
rights of the President to cancel or modify his approval of this Code
or any conditions imposed by him upon his approval thereof.
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 contemplated
that from time to time supplementary provisions to this Code or ad-
ditional Codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and de-
structive competitive practices and to effectuate the other purposes
and policies of Title I of the National Industrial Recovery Act
consistent with the provisions hereof.
THE COVERED CARPET PADDING MANUFACTURERS ASSOCIATION.