Citation
Proposed code of fair competition for the wool textile industry

Material Information

Title:
Proposed code of fair competition for the wool textile industry as submitted on July 15, 1933 and as approved on July 26, 1933 by President Roosevelt
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
x, 4 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Wool industry -- Law and legislation -- United States ( lcsh )
Textile industry -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Registry no. 286-04".
General Note:
On t.p.: 1. Executive order. 2. Administrator's report to the President. 3. Text of code as approved.

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004884716 ( ALEPH )
48023079 ( OCLC )

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UNIVERSITY OF FLORIDA

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3 1262 08482 9901
157-A


Registry No. 286--04


NATIONAL RECOVERY ADMINISTRATION




PROPOSED

CODE OF FAIR COMPETITION

FOR THE


WOOL TEXTILE INDUSTRY


AS SUBMITTED ON JULY 15, 1933
AND

AS APPROVED ON JULY 26, 1933
BY

PRESIDENT ROOSEVELT


DO,-i. : :


Fe. ... ;


1. Executive Order
2. Administrator's Report to the President
3. Text of Code as Approved






UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


e b the Superinndent o Docent Washington, D.C Prie 5 cents
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents


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JULY 26, 1933.
EXECUTIVE ORDER

A Code of Fair Competition for the Wool Textile Industry,
having been heretofore submitted to the National Recovery Adminis-
tration, hearing. having been held thereon, and an Amended Code
of Fair Competition having been submitted oi July 25, 1933, said
original Code and said Amended Code having been submitted by
duly qualified and authorized representatives of the Industry com-
plying with the Statutory requirements as representing eighty per-
cent of the capacity of the Industry, and said Code being in full
compliance with all pertinent provisions of the National Industrial
Recovery Act, Now Therefore
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, on the report and
recommendation of the Administrator appointed by me under the
authority of said Act, and on consideration:
It is ordered that the said Code of Fair Competition for the
Wool Textile Industry, as amended and submitted on July 25, 1933,
is hereby approved, subject to the following condition:
(1) To effectuate further the policies of the Act, a Wool Textile
Industry Committee be created to cooperate with the Administrator
as a Planning and Fair Practice agency for the Wool Textile Indus-
try, which Committee shall consist of five representatives of the
Wool Textile Industry elected by a fair method of selection, to be
approved by the Administrator, and three members without vote
appointed by the Administrator.
FRANKLIN D. ROOSEVELT.
Approval Recommended:
HUGH S. JOHNSON.
(m)













NATIONAL RECOVERY ADMINISTRATION


To the President:
INTRODUCTION

This is a report of the hearing on the Code of Fair Practice for the
Wool Textile Industry in the United States, conducted in Washing-
ton on July 24th and 25th. 1933. in accordance with the provisions
of the National Industrial Recovery Act.
The following exhibits are included and attached:
1. Final code submitted.
2. Notice of hearing.
3. Bylaws of the National Association of Wool Manufacturers.
4. Notice of hearing sent by National Association of Wool
Manufacturers to its membership together with lists of
membership.
5. Statement of procedure.
6. Transcript of the records.
7. List of witnesses.
In the conduct. of the hearing every person who had filed 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, and complies with the
statutory requirements, as representing fully eighty percent of the
wool textile machinery, including both looms and spindles.

ECONOMIC AND STATISTICAL ANALYSIS

The first significant factor to consider in connection with the wool
textile industry is the fact that since 1923 the gross volume of the
industry has been constantly declining, measured both by the per
capital consumption of woven goods and the total machinery activity
of the industry. In 1923 the per capital consumption of all worsted
and woolen woven goods was 7.26 square yards. In 1929 the per
capital consumption was 5.41 square yards. Per capital consumption
of dress goods for women's wear declined from 3.08 square yards in
1909 to .58 in 1929. an 81 percent decline. In 1923 the average broad
loom hours per week were 2,560.000: by 1932 the broad loom hours
had consistently fallen to an average of 1,170.000 hours per week.
Due to this constant decline, resulting from the inroads of com-
peting textile fabrics and changes in living habits and styles, the
wool textile industry has had extreme difficulty in readjusting its
affairs in an orderly manner. Therefore. this code is predicated
upon the assumption that the average activity of this constant period
of decline 1923-32 is a reasonable and adequate level of activity to
be attained and maintained. The average activity of the 1923-32
(IV) i.

I

A.'








period corresponds very closely with the activity of the industry in
the year 1929.
A characteristic of the wool textile industry requiring special
consideration is the rather wide diversification in the various
branches of the industry.
This has been recognized by the National Association of Wool
Manufacturers in the groupings provided for in its by laws. Be-
cause of the limited availability of complete and reliable statistics
in reference to these individual branches of the industry, it is neces-
sary for the purposes of formulating this code to use figures which
had application to the industry as a whole. It is inevitable, there-
fore, that particular branches of the industry may be affected diffier-
ently by the application of a code built upon total figures of the
industry, but under the circumstances it, is felt that the code as
formulated should be immediately adopted, and actual facts obtained
through the analysis of the statistics and reports provided for in
the code should become the basis in the future for any revisions
required to provide properly for the specific needs of subdivisions
of the industry.

MINIMUM WAGES AND HOURS or LABOR

The Wool Textile Industry Code provides a minimum wage of
$14 in the North and $13 in the South for a 40-hour week. It is
significant that in this code no exceptions from the minimnm wage
are made for learners or any othe.fr class of workers.
According to a survey made by the sponsors of this code, cover-
ing a very substantial cross-section of the entire industry, it is
estimated that 43% of the total workers employed in the industry
are now receiving less than $14 per week, the minimum proposed
by this code. The average weekly waae of this entire group now
receiving less than $14 per week is $12.40 per week. Raising this
group to the minimum of $14 a week will provide an additional
weekly total payroll for the industry of approximately $100,000.
By reason of shortening hours, as provided by this Code, approxi-
mately 27,000 workers will be added to wool textile mills pay rolls
to operate the industry on the basis of the 1929 level of activity. The
addition of these 27,000 workers even at a minimum of $14 per week
would add an additional $378,000 weekly pay roll. Adding this
figure of $378,000 and the $100,000 accounted for above will mean the
addition of approximately $478,000 per week to the pay roll of the
industry, or $23,900,000 annually on a basis of full-time earnings, in
addition to the amount added by reason of raising the wages of
the 57% of the wage earners in the industry now earning $14 or
more per week on a full-time week basis.
While no similar cross-section study of wages for the industry is
available for 1929, the United States Bureau of Labor Statistics in
its study of wages and hours in the woolen and worsted textile indus-
try published June 1929, indicated that female offers, one of the
lowest paid classifications of the industry, were paid on an average
of 28.4 cents per hour in the year 1928, which rate may be considered
comparable to the 35-cent-an-hour minimum provided in this code.
In 1929 there were approximately 147,000 wage earners employed
in the wool textile industry. The application of the 40-hour week








proposed by this code would require the total employment of
approximately 173,000 workers to produce the 1929 volume, or
approximately 18% more than the number employed on the average
in the year 1929.
The sponsors of the code have made the following recommen-
dations:
The amendment to Section III prohibits the improper speeding
up of work (stretch-outs) beyond the present prevailing practices.
In adopting this provision, we wish emphatically to record our
belief that improvements in industrial methods, if applied scientifi-
cally, have always resulted in benefits both to labor and the public.
These benefits must be preserved. On the other hand, the unscien-
tific application of this principle-the so-called stretch-out system-
may have been detrimental to labor. In order to prevent abuses,
without hampering progress, we hereby request the Administrator
to appoint a committee to study this problem in order to insure a
practical definition of improper speeding up of work, and to avoid
its harmful results."
When the labor representatives clearly understood that the mini-
mum wage proposed in the code applied without qualification or
exception, to learners, apprentices and casual labor alike, they at once
concurred in the provisions of the code.

MACHINERY-HouR LIMITATION

The Code provides for limitation of the hours of machinery opera-
tion as a measure designed to stabilize employment and production.
In arriving at a basis for machinery-hour limitation the sponsors of
the code fir't gave consideration to the number of looms and spindles
available for economical and effective use. The average demand for
the 10-year period from 1923 to 193 was computed in terms of
machine-hours required. After making allowances for plant effi-
ciency, balance of preparatory machinery, and especially for normal
seasonal variations, it was estimated that if every mill in the industry
operated two shifts constantly approximately 69 plant-hours would
be required per week to produce at the average 10-year (1923-32) rate
of consumption.
The 2 shifts of 40 machine-hours are required to maintain a 69-hour
machine-hour schedule, as only 80% of the looms in either a Woolen
or a Worsted Mill are available for operation at any one time.
The provision in the Code regulating machinery hours was the
only point at issue upon which a minority of the industry took ex-
ception. This minority withdrew its objection in favor of the
majority. It r' a fine e.xhbition, of spo-rsna'isihip oand unselfi.sh-
ne.s. A thorough analysis of this particular proldrem will be under-
taken immediately to obtain the actual facts by accurate statistical
study and research.
In this connection it is recommended that the Administrator
appoint a committee of five, consisting of one of recognized expe-
rience with technical knowledge from a textile educational institu-
tion, one to represent the Administrator, one to represent the Bureau

".






VII

of Census, one of recognized ability in the field of economic and
statistical research, and one of recognized ability in the wool textile
industry, but who has no direct personal interest in the industry.
** *
This hearing which has brought together one of the oldest and
most highly competitive industries in the United States, might well
serve as a fitting example of the broad, liberal give-and-take attitude
which the National Industrial Recovery Act and the clarifying state-
ments which have been broadcast from Washington have created in
the minds of American Industrialists.
Respectfully submitted.
HUGH S. JOHNSON, Administrator.









.i1



APPLICATION FOR APPROVAL OF CODE I

NATIONAL ASSOCIATION OF WOOL MANUFACTURERS,
229 FOURTH AVENUE, RooM 302,
New York City, July 14, 1933.
Telephone Algonquin 4-6434.
General HUGH S. JOHNSON,
Adtnhistrator under the National Industrial Recovery Act,
Washington, D.C.
DEAR SmI: By this application for approval of a preliminary
code submitted herewith dealing chiefly with matters of employ-
ment as you have suggested, the wool textile industry, through this
Association, offers its whole-hearted support toward the accomplish-
ment of the objectives of the National Industrial Recovery Act.
The code provides for a shorter work week for employees, which
will increase the total number of employees; for higher minimum
wages for the shorter week than those now generally prevailing
for a longer week; for a limitation of the hours of operation of
productive machinery, with a view to the adjustment of output
to demand and to the stabilization of employment; and for the
elimination of any employment of minors below the age of sixteen.
We understand that these objectives are the first and immediate
concern of the administration and we desire to cooperate in their
attainment in our industry.
The cost of the products of the industry will be materially in-
creased by the larger wage cost per unit of product resulting from
the establishment of this code. We realize, however, that our
action in becoming subject to the code is part of the large program
of the administration looking toward the prompt increase of pur-
chasing power and the general improvement of economic conditions.
We stand ready to go forward in this industry with the initial step
toward the success of this vital effort.
We have endeavored to gather together all available data bearing
upon the subjects which we have dealt with in the code. Existing
data concerning present and past operations and such additional
facts as could be secured without unduly delaying the submission
of this code are not sufficient to allow intelligent dealing with long
range economic planning for this industry. To this end we have
provided in the code for a broad program of factual information as
the future basis for suggesting modifications of or supplements to
this code.
We must direct attention to the fact that the economic welfare of
the employees in this field has been dependent in considerable measure
upon the tariff on foreign importations. If the facts show that the
increased cost of manufacture resulting from this code requires pro-
ceedings under the section of the Act providing for protection from
(VIII)








undue importations of competing foreign products, we expect that
the necessary official action will be taken in order to preserve security
of employment and to maintain the industry.
Believing that our employees and customers on their part will
loyally cooperate, we submit this code confident that the President,
with the recommendation of yourself and your associates under the
Act, will hereafter approve such mo lifications thereof covering
wages, hours of labor, or of machinery, and such supplements to this
code covering fair trade practices or other subjects as will be neces-
sary to enable this industry successfully to adjust production to
changing demands, to stabilize employment, and to serve its cus-
tomers and the public.
Respectfully submitted.
THE NATIONAL ASSOCIATION OF WOOL MANUFACTURERS.
By following directors:
Harold S. Edwards, Walter Humphreys. Lewis A. Hird,
William H. Folwell, Abbot Stevens, Frederic W. Tip-
per, H. M. Ashby, A. E. Bonin, Marland C. Hobbs,
Frank D. Levering, Albert C. Bowman, Rowe B. Met-
calf, Percy Ainsworth, Louis Bachmann, F. C. Du-
maine, Jr., Curt E. Forstmann, Norman J. Fox,
Franklin W. Hobbs, Richard Lennihan, Allen R.
Mitchell, Jr., Addison L. Green, Millard D. Brown,
Arthur S. Harding, Fred Wolstenholme, J. L. Hut-
cheson, Jr., Charles F. H. Johnson, R. A. Julia, Aus-
tin T. Levy, William B. MacColl, J. L. Mender, Lionel
J. Noah, W. S. Nutter, Moses Pendleton.
[SEAL] By HAROLD S. EDWARDS, President.












P4






I,













SUBMISSION OF AMENDMENTS TO CODE


NATIONAL ASSOCIATION OF WOOL MANUFACTURERS

229 FOURTH AVENUE, NEW YORK CITY

WASHINGTON, D.C., July 25, 1933.
GENERAL HUGH S. JOHNSON,
Administrator under National Industrial Recovery Act,
T'ashington, D.C.
DEAR SIR: We submit herewith a copy of three resolutions adopted
by the Board of Directors of the National Association of Wool Man-
ufacturers at a meeting held in this city on July 24, 1933. These
resolutions make amendments to the Code as presented to the Ad-
ministrator on July 15, 1933, pursuant to authority granted to the
Board of Directors by the Association in a resolution adopted by the
Association on July 14, 1933.
These amendments are made pursuant to suggestions made by
you, and we desire to make some comments thereon.
The amendment to Section II guarantees, in the higher brackets,
at least the same weekly wages for the shorter week as were previ-
ously paid for the longer week. It omits any provision regarding
the preservation of existing differentials between employees in the
higher brackets. The National Association of Wool Manufacturers
plans a careful investigation of the wage problem, with a view to
obtaining greater uniformity in wage rates throughout the industry.
We believe that a rigid limitation on the changing of existing dif-
ferentials, if written into the code, would unduly hamper such a
program without adding to the practical effect of the code.
The amendment to Section III prohibits the improper speeding
up of work (stretch-outs) beyond present prevailing practices. In
adopting this provision, we wish emphatically to record our belief
that improvements in industrial methods, if applied scientifically,
have always resulted in benefits both to labor and to the public.
These benefits must be preserved. On the other hand, the unscientific
application of this principle-the so-called stretch-out system-may
have been detrimental to labor. In order to prevent abuses, without
hampering progress, we hereby request the Administrator to appoint
a committee to study this problem in order to insure a practical
definition of improper speeding up of work, and to avoid its harmful
results.
Respectfully submitted.
NATIONAL ASSOCIATION OF WOOL MANUFACTURERS,
By HAROLD S. EDWARDS, President.













CODE OF FAIR COMPETITION FOR THE WOOL TEXTILE
INDUSTRY

SUBMITTED BY NATIONAL ASSOCIATION OF WOOL MANUFAC-
TURERS ON JULY 15, 1933, AS AMENDED BY RESOLUTIONS OF
THE BOARD OF DIRECTORS OF THE ASSOCIATION ON JULY 24, 1933
To effectuate the policy of Title I of the National Industry Recov-
ery Act, during the period of the emergency, by reducing unemplloy-
ment, improving the standards of labor, eliminating practices
inimical to the interests of the public, employees, and employers, and
otherwise to improve the condition of the wool manufacturing
industry, to increase the consumption of industrial and agricultural
produ. ts by increasing purchasing power, and in other respects, the
following provisions are established as a code of fair competition
for the wool textile industry:

I-DEFINITIONS
As used herein the term wool textile industry shall include the
following branches: Manufacture of worsted men's wear, worsted
women's wear, carded men's wear, carded women's wear, blankets,
cotton warp fabrics, reworked wool, knitted woolen goods, worsted
sales yarn (Bradford System), worsted sales yarn (French System),
carded sales yarn, and combing, wool scouring and carbonizing, and
S such other related branches as may from time to time be included
under the provisions of this code.
The term employers shall mean all persons who employ labor
in the conduct of any branch of the wool textile industry, as defined
above.
S The term "employees shall mean all persons employed in the
conduct of any branch of the wool textile industry, as defined above.
The term "effective date" shall mean August 14, 1933, or, if this
code shall not have been approved by the President at least two weeks
prior to that date. then the second Monday after such approval.
The term person shall mean any individual, partnership, asso-
ciation, trust, or corporation.

II-MINrIIMUM WAGE
On and after the effective date, the wages that shall le paid by
any employer to any employee, employed North of the Mason and
Dixon Line, shall be at not less than the rate of 350 an hour, or of $14
per week for forty hours of labor.
On and after the effective date, the wages that shall be paid by
any employer to any employee, employed South of the Mason and
Dixon Line, shall be at not less than the rate of 321_4 an hour, or of
$13 per week for forty hours of labor.
11982-133-17--33 (1)








As to wages of employees now receiving not less than the minimum
wage established by this code, no employer shall, on or after the :
effective date, pay any such employee a wage rate which will yield -
a' less wage flr a work week of forty hours than such employee was
receiving for the same class of work for the established longer week
of forty-eight hours or more prevailing prior to the effective date.

III-HouRs OF LABOR

On and after the effective date no employer shall employ any em-
ployee in excess of forty hours per week, this, however, not to apply
to hours of labor for repairshop crews, engineers, electricians, firemen,
office, sales, and supervisory staff, shipping, watching, and outside
crews.
Until adoption of further provisions of this code that may prove
necessary to prevent any improper speeding up of work (stretch-
outs), no employee of any mill in the wool textile industry shall be
required to do any work in excess of the practices as to the class of
work of such employee prevailing on July 1, 1933, unless such increase
is submitted to and approved by the Administrator.

WV-HoURs OF OPERATION OF MACHINERY

On and after the effective date, no employer shall operate any comb
or any spinning spindle or any loom or any knitting machine for
more than two shifts of forty hours each per week.

V-E-MPLOYMENT OF MINORS

On and after the effective date, employers shall not employ any
minor under the age of sixteen years.

VI-REPORTS

For the purpose of supplying the President and the Administrator
with requisite data as to the observance and effectiveness of this code,
and as to whether the wool textile industry is taking appropriate
steps to enable it intelligently to adjust its hours of labor, wages,
and productive capacity to changing demands of consumers, indus-
trial trends, and other conditions in accordance with the declared
policy of the National Industrial Recovery Act, each employer shall
furnish regular reports as hereinafter provided. The National Asso-
ciation of Wool Manufacturers, 229 Fourth Avenue, New York City
is hereby constituted the agency to provide for the collection and
receipt of such reports and for the forwarding of the substance of
such reports to the President, the Association to provide for receiving
and holding such reports themselves in confidence. Such reports
shall be in such form, and shall be furnished at such intervals, as
shall be prescribed by the Association, and shall contain such infor-
mation relevant to the purposes of this code, as shall be prescribed
by the Association from time to time, including information with
respect to the following or related subjects:
1. Employment, hours, wages, and wage rates.









2. Production, orders, billings, and stocks (in process and finished)
of products manufactured.
3. Financial and cost data.
4. Activity, purchases, sales, and scrapping of machinery.
5. Consumption and stocks of raw materials.

VII-PRIOR CONTRACTS

It is hereby declared to be the policy of this code that where tlhe
costs of executing contracts for wool or worsted yarns or textiles,
entered into prior to the effective date of this code, are increa-wd as
a result of the operation of provisions of this code, appropriate ad-
justments of such contracts should be made so as to reflect such
increased costs, and, further, that. where the performance of orders
for wool or worsted yarns or textiles, accepted prior to the effective
date of this code, is delayed or prolonged as a result of the operation
of provisions of this code, appropriate additional time should be
allowed for the completion of such orders. The National Associa-
tion of Wool Manufacturers is hereby constituted an agency to assist
in effecting such adjustments, where such adjustments are not agreed
upon by the parties.

VIII-PRovISIONS FROM RECOVERY ACT

Employers shall comply with the requirementii of the National
Industrial Recovery Act. as follows:
1. That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, ant shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representative, 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 re-
quired as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing; and
3. That employers shall comply with the maximum hours of laIor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.

IX-CANCELLATION OR MODIFICAT!(ON

This code and all the provisions thereof are expres-sly made sulb-
ject to the right of the President, in accordance with Sec. 10 (b)
of Title I of the National Industrial Recoverv Art, from time to
time to cancel or modify any order, approval. license, rule, or rtegu-
lation issued under Title I of said Act.

X-CHANGES AND ADDITIONS

Such of the provisions of this code as are not required to be in-
cluded therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated in such
manner as may be indicated by the needs of the public, by changes









in circumstances, or by experience; all the provisions of this code,
unless so modified or eliminated, shall remain in effect until the
expiration date of Title I of the National Industrial Recovery Act.
In order to enable the industry to conduct its operations subject
to the provisions of this code, to establish fair trade practices within
the industry and with those dealing with the industry, and otherwise
to effectuate the purposes of Title I of the National Industrial Re-
covery Act, supplementary provisions of this code or additional
codes may be submitted from time to time for the approval of
the President.
XI-PARTIAL INVALIDITY

If any provision of this code is declared invalid or unenforceable.
the remaining provisions thereof shall nevertheless continue in full
force and effect in the same manner as if they had been separately
presented for approval and approved by the President.
I, WALTER HUMPHREYS, Secretary of the National Association of
Wool Manufacturers, do hereby certify that the foregoing is a true
copy of the Code of Fair Competition for the wool textile industry
submitted to the Administrator under the National Industrial Re-
covery Act on July 15, 1933, as amended by vote of the Board of
Directors of the said Association at a meeting held at the Hotel
Washington, Washington, D.C., on July 4, 1933.
Dated July 25, 1933.
[SEAL] WALTER HUMPHREYS,
Secretary.




Full Text

PAGE 1

UNIVERSITY OF FLORIDA3 1262 08482 9901157-A Registry No. 286-04NATIONAL RECOVERY ADMINISTRATIONPROPOSEDCODE OF FAIR COMPETITIONFOR THEWOOL TEXTILE INDUSTRYAS SUBMITTED ON JULY 15, 1933ANDAS APPROVED ON JULY 26, 1933BYPRESIDENT ROOSEVELTRU.,.W1 DO OUR PART1. Executive Order2. Administrator's Report to the President3. Text of Code as ApprovedUNITED STATESGOVERNMENT PRINTING OFFICEWASHINGTON: 1933For sale by the Superintendent of Documents, Washington, D.C. ------Price 5 cents

PAGE 3

JUiY 26, 1933.EXECUTIVE ORDERA Code of Fair Competition for the Wool Textile Industry,having been heretofore submitted to the National Recovery AdImiinis-tration, bearings having been held thereon, and an Amended Codeof Fair Conpetition having been submitted on July 25, 193, saidoriginal Code and said Amended Code having been submitted byduly qualified and authorized representatives of the Indistry coin-plying with the Statutory requirements as representing eighty per-cent of the capacity of the Industry, and said Code being in fullcompliance with all pertinent provisions of the National IndustrialRecovery Act, Now ThereforePursuant to the authority vested in me by Title I of the NationalIndustrial Recovery Act, approved June 16, 1933, on the report andreconiniendation of the Administrator appointed by me under theauthority of said Act, and on consideration:It is ordered that the said Code of Fair Competition for theWool Textile Industry, as amended and submitted on July 25, 1933,is hereby approved, subject to the following condition:(1) To effectuate further the policies of the Act, a Wool TextileIndustry Committee be created to cooperate with the Administratoras a Planning and Fair Practice agency for the Wool Textile Indus-try, which Committee shall consist of five representatives of theWool Textile Industry elected by a fair method of selection, to beapproved by the Administrator, and three members without voteappointed by the Administrator.FRANKLIN D. ROOSEVELT.Approval Recommended:HUGH S. JOHNSON.(MI)

PAGE 4

NATIONAL RECOVERY ADMINISTRATIONTo the Piesident:INTRODUCTIONThis is a report of the hearing on the Code of Fair Practice for theWool Textile Industry in the United States, conducted in Washing-ton on July 24th and 25th, 1933, in accordance with the provisionsof the National Industrial Recovery Act.The following exhibits are included and attached:1. Final code submitted.2. Notice of hearing.3. Bylaws of the National Association of Wool Manufacturers.4. Notice of hearing sent by National Association of WoolManufacturers to its membership together with lists ofmembership.5. Statement of procedure.6. Transcript of the records.7. List of witnesses.In the conduct of the hearing every person who had filed a requestfor an appearance was freely heard in public and all statutory andregulatory requirements were complied with.The code which is attached was presented by duly qualified andauthorized representatives of the industry, and complies with thestatutory requirements, as representing fully eighty percent of thewool textile machinery, including both looms and spindles.ECONOMIC AND STATISTICAL ANALYSISThe first significant factor to consider in connection with the wooltextile industry is the fact that since 1923 the gross volume of theindustry has been constantly declining, measured both by the percapital consunj)tion of woven goods and the total machinery activityof the industry. In 1923 the per capita consuimption of all worstedand woolen woven goods was 7.26 square yards. In 1929 the percapita consumption was 5.41 square yards. Per capita consumptionof dress Qoods for women's wear declined from 3.08 square yards in1909 to .58 in 1929, an 81 percent decline. In 1923 the average broadloom hours per week were 2,560.000: by 1932 the broad looim hourshad consistently fallen to an average of 1.170,000 hours per week.Due to this constant decline, resulting from the inroads of com-peting textile fabrics and changes in living habits and styles, thewool textile industry has had extreme difficulty in readjusting itsaffairs in an orderly manner. Therefore. this code is predicatedupon the assumption that the average activity of this constant periodof decline 1923-32 is a reasonable and adequate level of activity tobe attained and maintained. The average activity of the 1923-32(IV)

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vperiod corresponds very closely with the activity of the inlduistry illthe year 1929.A characteristic of the wool textile indiustry reqiuring specialconsideration is the rather wide diversification in the variousbranches of the industry.This has been recognized by the National Associ ationl (f WoolManufacturers in the groupings provided for in ts by vs. ,e-cause of the limited availability of complete and reliable statisticsin reference to these individual branches of the industry, it is neces-sary for the purposes of formulating this code to use figures whichhad application to the industry as a whole. It is inevitable, there-fore, that particular branches of the industry may be affected diffier-ently by the application of a code built upon total figures of theindustry, but under the circumstances it is felt that the code asformulated should be immediately adopted, and actual facts obtainedthrough the analysis of the statistics and reports provided for inthe code should become the basis in the future for any revisionsrequired to provide properly for the specific needs of subdivisions of the industry.MINIMUM WAGES AND HouRs OF LABORThe Wool Textile Industry Code provides a minimum wage of$14 in the North and $13 in the South for a 40-hour week. It issignificant that in this code no exceptions from the mgn/m, wageare made for learners or any other class of workers.According to a survey made by the sponsors of this code, cover-ing a very substantial cross-section of the entire industry, it isestimated that 43% of the total workers employed in the industryare now receiving less than $14 per week, the minimum proposedby this code. The average weekly wage of this entire group nowreceiving less than $14 per week is $12.40 per week. Raising thisgroup to the minimum of $14 a week will provide an additionalweekly total payroll for the industry of approximately $100,000.By reason of shortening hours, as provided by this Code, approxi-mately 27,000 workers will be added to wool textile mills pay rollsto operate the industry on the basis of the 1929 level of activity. Theaddition of these 27,000 workers even at a minimum of $14 per weekwould add an additional $378,000 weekly pay roll. Adding thisfigure of $378,000 and the $100,000 accounted for above will mean theaddition of approximately $478,000 per week to the pay roll of theindustry, or $23,900,000 annually on a. basis of full-time earnings, inaddition to the amount added by reason of raising the wages ofthe 57% of the wage earners in the industry now earning $14 ormore per week on a full-time week basis.While no similar cross-section study of wages for the industry isavailable for 1929, the United States Bureau of Labor Statistics inits study of wages and hours in the woolen and worsted textile indus-try published June 1929, indicated that female doffers, one of thelowest paid classifications of the industry, were paid on an averageof 28.4 cents per hour in the year 1928, which rate may be consideredcomparable to the 35-cent-an-hour minimum provided in this code.In 1929 there were approximately 147,000 wage earners employed in the wool textile industry. The application of the 40-hour week

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viproposed by this code would require the total employment ofapproximately 173,000 workers to produce the 1929 volume, orapproximately 18% more than the number employed on the average in the year 1929.The sponsors of the code have made the following recommen-dations:" The amendment to Section III prohibits the improper speeding up of work (stretch-outs) beyond the present prevailing practices.In adopting this provision, we wish emphatically to record ourbelief that improvements in industrial methods, if applied scientifi-cally, have always resulted in benefits both to labor and the public.These benefits must be preserved. On the other hand, the unscien-tific application of this principle-the so-called stretch-out system-may have been detrimental to labor. In order to prevent abuses,without hampering progress, we hereby request the Administratorto appoint a committee to study this problem in order to insure apractical definition of improper speeding up of work, and to avoidits harmful results." When the labor representatives clearly understood that the mini-mum wage proposed in the code applied without qualification orexception, to learners, apprentices and casual labor alike, they at onceconcurred in the provisions of the code.MACHINERY-HOUR LIMITATIONThe Code provides for limitation of the hours of machinery opera-tion as a measure designed to stabilize employment and production.In arriving at a basis for machinery-hour limitation the sponsors ofthe code first gave consideration to the number of looms and spindlesavailable for economical and effective use. The average demand forthe 10-year period from 192, to 1932 was computed in terms of machine-hours required. After making allowances for plant effi-ciency, balance of preparatory machinery, and especially for normalseasonal variations, it was estimated that if every mill in the industryoperated two shifts constantly approximately 69 plant-hours wouldbe required per week to produce at the average 10-year (1923-32) rateof Coisiimption. The 2 shifts of 40 machine-hours are required to maintain a 69-hourmachine-hour sohedile, as only 80% of the looms in either a Woolenor a Worsted Mill are available for operation at any one time.The provision in the Code regulating machinery hours was theonly point at issue upon which a minority of the industry took ex-ception. Tis minority withdrew its objection in favor of themajority. IP WaIN a Ine exh ibiton of sportsv~n(!nsip and 7se 71-n z. A thloroulgh analysis of this particular problem will be under-taken immediately to obtain the actual facts by accurate statisticalstudy and research.In this connection it is recommended that the Administratorappoint a committee of five, consisting of one of recognized expe-rience with fechniical knowledge from a textile educational institu-tion, one to represent the Administrator, one to represent the Bureau

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VIIof Census, one of recognized ability in the field of economic andstatistical research, and one of recognized ability in the wuol textileindustry, but who has no direct personal interest in the industry.* * * * * * *This hearing which has brought together one of the oblest andmost highly competitive industries in the United States, itight wellserve as a fitting example of the broad, liberal give-and-tike at tituidewhich the National Industrial Recovery Act and the elarifyiig state-ments which have been broadcast from Washington have created in the minds of American Industrialists.Respectfully submitted.HUGH S. JOHNSON, Adiminh itrtr.

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APPLICATION FOR APPROVAL OF CODENATIONAL ASSOCIATION OF AoOL MANUFACTURERS,22 9 FoURTH AVENUE, Room 102,New York City, July 141, 1933.Telephone Algonquin 4-6434.General HuGh S. JOHNSON,Admini4rator under the Aational Industrial Recovery Act,Washington, D.C.DEAR SIR: By this application for approval of a preliminarycode submitted herewith dealing chiefly with matters of employ-ment as you have suggested, the wool textile industry, through thisAssociation, offers its whole-hearted support toward the accomplish-ment of the objectives of the National Industrial Recovery Act.The code provides for a shorter work week for employees, whichwill increase the total number of employees; for higher minimumwages for the shorter week thai those now generally prevailingfor a longer week; for a limitation of the hours of operation ofproductive machinery, with a view to the adjustment of outputto demand and to the stabilization of employment; and for theelimination of any employment of minors below the age of sixteen.We understand that these objectives are the first and immediateconcern of the administration and we desire to cooperate in theirattainment in our industry.The cost of the products of the industry will be materially in-creased by the larger wage cost per unit of product resulting fromthe establishment of this code. We realize, however, that ouraction in becoming subject to the code is part of the large programof the administration looking toward the prompt increase of pur-chasing power and the general improvement of economic conditions.We stand ready to go forward in this industry with the initial steptoward the success of this vital effort.We have endeavored to gather together all available data bearingupon the subjects which we have dealt with in the code. Existingdata concerning present and past operations and such additionalfacts as could be secured without unduly delavintg the submission of this code are not sufficient to allow intelligent dealing with longrange economic planning for this industry. To this end we have)rovided in the code for a broad program of factual information asthe future basis for suggesting modifications of or supplements tothis code.We must direct attention to the fact that the economic welfare ofthe employees in this field has been (lepen(lent in considerable measureupon the tariff on foreign iiportations. If the facts show that theincreased cost of manufacture resulting from this code requires pro-ceedings under the section of the Act providing for protection from(vill)

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ixundue importations of competing foreign products, we expect thatthe necessary official action will be taken in order to preserve securityof employment and to maintain the industry.Believing that our employees and customers oI tlheir 1' Irt willloyally cooperate, we submit this code coiifidenit t hat the Presideint,with the recommendation of yourself and yomur associates kinder theAct, will hereafter approve such mo lificat ions thereof coveringwages, hours of labor, or of machinery, and such supplemeiits to thiscode coverinir fair trade practices or other subjects as will be neces-sary to enable this industry successfully to adjust production tochanging demands, to stabilize employment, and to serve its cus-tomers and the public.Respectfully submitted.THE NATIONAL ASSOCIATION OF WOOL MANUFACTURERS.By following directors:Harold S. Edwards, Walter Humphreys, Lewis A. Hirt],William H. Folwell, Abbot Stevens, Frederic W. Tip-per, H. M. Ashby, A. E. Bonin, Marland C. Hobbs,Frank D. Levering, Albert C. Bowman, Rowe B. Met-calf, Percy Ainsworth, Louis Bachmann, F. C. Dli-maine, Jr., Curt E. Forstmann, Norman J. Fox,Franklin W. Hobbs, Richard Lennihan, Allen R.Mitchell, Jr., Addison L. Green, Millard D. Brown,Arthur S. Harding, Fred Wolstenholme, J. L. Hut-cheson, Jr., Charles F. H. Johnson, R. A. Julia. Aus-tin T. Levy, William B. MacColl, J. L. Meader, LionelJ. Noah, W. S. Nutter, Moses Pendleton.[SEAL] By HAROLD S. EDwARDs, President.

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SUBMISSION OF AMENDMENTS TO CODENATIONAL ASSOCIATION OF WOOL MANUFACTURERS229 FOURTH AVENUE, NEW YORK CITYWASIIINGTON, D.C., July 25, 1933.GENERAL HUGH S. JOHNSON,Administrator under National Industrial Recovery Act, Washington, D.C.DEAR SIR: We submit herewith a copy of three resolutions adoptedby the Board of Directors of the National Association of Wool Man-ufacturers at a meeting held in this city on July 24, 1933. Theseresolutions make amendments to the Code as presented to the Ad-ministrator on July 15, 1933, pursuant to authority granted to theBoard of Directors by the Association in a resolution adopted by theAssociation on July 14, 1933.These amendments are made pursuant to suggestions made byyou, and we desire to make some comments thereon.The amendment to Section II guarantees, in the higher brackets,at least the same weekly wages for the shorter week as were previ-ously paid for the longer week. It omits any provision regardingthe preservation of existing differentials between employees in thehigher brackets. The National Association of Wool Manufacturersplans a careful investigation of the wage problem, with a view to obtaining greater uniformity in wage rates throughout the industry.We believe that a rigid limitation on the changing of existing dif-ferentials, if written into the code, would unduly hamper such aprogram without adding to the practical effect of the code.The amendment to Section III prohibits the improper speedingup of work (stretch-outs) beyond present prevailing practices. Inadopting this provision, we wish emphatically to record our beliefthat improvements in industrial methods, if applied scientifically,have always resulted in benefits both to labor and to the public.These benefits must be preserved. On the other hand, the unscientificapplication of this principle-the so-called stretch-out system-mayhave been detrimental to labor. In order to prevent abuses, withouthampering progress, we hereby request the Administrator to appointa coinniittee to study this problem in order to insure i practicaldefinition )f improper speeding up of work, and to avoid its harmfulresults.Respectfully submitted.NAT1 ( xNAL ASSOCIATION OF WOOL MANUFACTURERS,By HAROLD S. EDwARDS, President.(x)

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CODE OF FAIR COMPETITION FOR THE WOOL TEXTILEINDUSTRYSUBMITTED BY NATIONAL ASSOCIATION OF WOOL MANTFAC-TURERS ON JULY 15, 1933, AS AMENDED BY RESOLUTIONS OFTHE BOARD OF DIRECTORS OF THE ASSOCIATION ON JULY 24, 1933To effectuate the policy of Title I of the National Indust ry Recov-ery Aut, during the period of the emergency, by reducing unem ploy-ment, improving the standards of labor, eliniiiiatimg practices inimical to the interests of the public, employees, and employers, andotherwise to improve the condition of the wool manifacturingindustry, to increase the consumption of industrial and agriculturalproducts by increasing purchasing power. and in other respects. thefollowing provisions are established as a code of fair competitionfor the wool textile industry:I-DEFINTIONSAs used herein the term "wool textile industry " shall include thefollowing branches: Manufacture of worsted men's wear, worstedwomen's wear. carded men's wear, carded women's wear, blankets,cotton warp fabrics, reworked wool, knitted woolen goods, worstedsales yarn (Bradford System), worsted sales yarn (French System), carded sales yarli, anl coimbing,, wool scouring and carbonizing, andsuch other related branches as may from time to time be includedunder the provisions of tbis code.The term " employers " shall mean all persons who employ laborin the conduct of any branch of the wool textile industry, as definedabove.The term "employees" shall mean all persons employed in theconduct of any branch of the wool textile industry. as definedd above.The term " effective (late " shall mean Augtist 14, 198;83. or, if thiscode shall not have been approved by the President at least t wo weeksprior to that date, then the second Monday after such approval.The term " person " shall mean any individual, partnership, asso-ciation, trust, or corporatiOn.IT-MINAIUM WAGEOn and after the effective date, the wages that shall be paid byany employer to any employee. employed North of the Mason andDixon Line, shall be at not less than the rate of 35. an hour, or of $14per week for forty hours of labor.On and after the effective date, the wages that shall be paid byany employer to any employee, employed South of the Mason andDixon Line, shall be at not less than the rate of 32 0 an hour, or of$13 per week for forty hours of labor.11982-133-17-33 (1)

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As to w aWes of emnployees now receiving not less than the minimumwae es~tablihd by this ode. no employer shall, on or after theeffective date, pay any uiheli eimiplovee a wave rate which will yielda less waae ior a work week of fortV hours than such employee wasreceiving for the same class of work for the established longer weekof forty-eight hours or more prevailing prior to the effective date.III-HOURS OF LABOROn and after the effective (late no employer shall employ any em-ployee in excess of forty hours per week, this, however, not to applyto Iihours of labor for repairshop crews, engineers, electricians, firemen,office, sales, and supervisory staff, shipping, watching, and outsidecrews.Until adoption of further provisions of this code that may provenecessary to prevent any improper speeding up of work (stretch-outs), no employee of any mill in the wool textile industry shall berequired to do any work in excess of the practices as to the class ofwork of such employee prevailing on July 1, 1933, unless such increaseis submitted to and approved by the Administrator.IV-HOURS OF OPERATION OF 'MACHINERYOn and after the effective date, no employer shall operate any combor any spinning spindle or any loom or any knitting machine formore than two shifts of forty hours each per week.V-EMPLOYMENT OF MINORSOn and after the effective date, employers shall not employ anyminor under the age of sixteen years.VI-REPORTSFor the purpose of supplyinig the President and the Administratorwith requisite data as to the observance and effectiveness of this code,and as to whether the wool textile industry is taking appropriatesteps to enable it intelligently to adjust its hours of labor, wages,and productive capacity to changing demands of consumers, indus-trial trends, and other conditions in accordance with the declaredpolicy of the National Industrial Recoverv Act, each employer shallfurnish regular reports as hereinafter provided. The National Asso-ciation of Wool Manufacturers, 229 Fourth Avenue, New York City,is hereby constituted the agency to provide for the collection andreceipt of such reports and for the forwarding of the substance ofsuch reports to the President, the Association to provide for receivingandl holding such reports themselves in confidence. Such reportsshall be in such form, and shall be furnished at such intervals, asshall be prescribed by the Association, and shall contain such infor-mation relevant to the purposes of this code, as shall be prescribedby the Association from time to time, including information withrespect to the following or related subjects:1. Employment, hours, wages, and wage rates.

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2. Production, orders, illiigs, and stocks (ini prOCess ad I finisicI)of products manufactured.3. Financial andI cost data.4. Act i vi ty, pu rcliases, sales, ai1d sc appin of machiry.5. Consumption -id stocks of raw materials.Vt 1-Pion C'oxTAcusIt is hereby declared to be the policy of this code thiat where thl ucosts of executing contracts for wool or worsted yars or textiles,entered into prior to the effective date of this code, are inreised asa result of the operation of provisions of this code, appropriate a1-justments of such contracts should be made so as to reflect sI.hincreased costs, and, further, that where the performance of ordersfor wool or worsted yarns or textiles, accepted prior to the effectivedate of this code, is delayed or prolonged as a result of the operationof provisions of this code, appropriate additional time should beallowed for the completion of such orders. The National Associa-tion of Wool Manufacturers is hereby constituted an agency to assistin effecting such adjustments, where such adjustments are ]lot agreedupon by the parties.VIII-PROvIsIONS FROM RECOVERY ACTEmployers shall comply with the requirements of the NationalIndustrial Recovery Act as follows:1. That employees shall have the right to organize and bargaincollectively through representatives of their own clioosing, anI shallbe free from the interference, restraint, or coercion of employers oflabor, or their agents, in the designation of such representatives orin self-organization or in other cmncerted activities for the pmrposeof collective bargaining or other mutual aid or protection:2. That no employee and no one seeking employment shall be re-quired as a condition of employment to join any company unionor to refrain from joining, organizing, or assisting a labor organiza-tion of his own choosing; and3. That employers shall comply with the maxinuini hours (f labor,minimum rates of pay, and other conditions of ciployment, approvedor prescribed by the President.IX-CANCELLATION OR MoNDF1CAT!iONThis code and all the provisions thereof are express! v made silb-ject to the right of the President, in accordance with Sec. 10 (b)of Title I of the National Industrial Recoverv Act, from time totime to cancel or mo(lify any order, approval, license, rule, or regu-lation issued under Title I of said Act.X-CHANoEs AND Aim)ITNsSuch of the provisions of this cole as are not required to be in-cluded therein by the National Industrial Recovery Act may, withthe approval of the President, be niolified or elimiiated in suchmanner as may be indicated by the needs of the public, by changes

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4in circumstances, or by experience; all the provisions of this code,unless so modified or eliminated, shall remain in effect until theexpiration date of Title I of the National Industrial Recovery Act.In order to enable the industry to conduct its operations subjectto the provisions of this code, to establish fair trade practices withinthe industry and with those dealing with the industry, and otherwiseto effectuate the purposes of Title I of the National Industrial Re-covery Act, supplementary provisions of this code or additionalcodes may be submitted from time to time for the approval ofthe President.XI-PARTIAL INVALIDITYIf any provision of this code is declared invalid or unenforceable.the remaining provisions thereof shall nevertheless continue in fullforce and effect in the same manner as if they had been separatelypresented for approval and approved by the President.I, WALTER HUMPHREYS, Secretary of the National Association ofWool Manufacturers, do hereby certify that the foregoing is a truecopy of the Code of Fair Competition for the wool textile industrysubmitted to the Administrator under the National Industrial Re-covery Act on July 15, 1933, as amended by vote of the Board ofDirectors of the said Association at a meeting held at the Hotel Washington, Washington, D.C., on July 24, 1933.Dated July 25, 1933.[SEAL] WALTER HUMPHREYS,Secretary.0

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