Citation
Code of fair competition for the rayon and silk dyeing and printing industry

Material Information

Title:
Code of fair competition for the rayon and silk dyeing and printing industry as approved on December 21, 1933 by President Roosevelt
Added title page title:
National Recovery Administration
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington
Publisher:
U.S. Govt. Print. Off.
Publication Date:
Language:
English
Physical Description:
ii, 311-323 p. : ; 23 cm.

Subjects

Subjects / Keywords:
Dyes and dyeing -- Silk -- Law and legislation -- United States ( lcsh )
Dyes and dyeing -- Rayon -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Cover title.
General Note:
Includes: 1. Executive order. 2. Letter of transmittal. 3. Code.
General Note:
"Approved Code no. 172".
General Note:
"Registry no. 230-07".

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:
004856998 ( ALEPH )
31966401 ( OCLC )

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NATIONAL RECOVERY ADMINISTRATION


CODE OF FAIR COMPETITION


FOR THE


RAYON AND SILK DYEING


, AND PRINTING INDUSTRY


A"'S APPROVED ON DECEMBER 21, 1933
BY
PRESIDENT ROOSEVELT


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This publication is for sale by the Superintendent of Documents, Gov
Printing Office, Washington, D.C., and by district offices of the BIeaie3
Foreign and Domestic Commerce. ,i:
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 'Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building. : ,
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Rdom 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street. :.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Building.








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Approved Code No. 172

S CODE OF FAIR COMPETITION
for the

RAYON AND SILK DYEING AND PRINTING
INDUSTRY

As Approved on December 21, 1933
B 1'i".. .:
-;- ..,' .: ..
PRESIDENT ROOSEVELT


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SExecutive Order

fAn: application having been duly made, pursuant to and in full
I: compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
o? f Fair Competition for the Rayon and Silk Dyeing and Printing
Industry, and hearings having been held thereon and the Adminis-
trator having rendered his report containing an analysis of the said
i. coI:: jde of fair competition together with his recommendations and
1 idings with respect thereto, and the Administrator having found
that the said code of fair competition complies in all respects with
:the pertinent provisions of title I of said act and that the require-
:.. U..nts' of clauses (1) and (2) of subsection (a) of section 3 of the
i" id act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
S otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved, to become effective in place
Sof the code of labor provisions for said industry heretofore approved
by me on July 22, 1933.
FRANKLIN D. ROOSEVELT.
; Approval recommended:
SHUo S. JOHNsON,
SAdministrator.
TmHE WHITE HOUSE,
:i::::::December 21, 1933.
27202----244--225-83 (311)
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THE PRESIDENT,
The White House.


INTRODroUCTION

S: This is a report on the Hearing of the Code of Fair Competil.-:
tion for the Rayon and Silk Dyeing and Printing Industry. I
The hearing was held, in the Garden Room of the Mayflower::i i ii
Hotel in Washington, D.C.,' on November 10, 1933, in accordance .
with the provisions of the National Industrial Recovery Act. Every
person who filed an appearance was freely heard in public and all :ii
statutory and regulatory requirements were complied with.
Attached herewith is a copy of the Code which was presented
by duly qualified and authorized representatives of the above indus-
try, complying with the statutory requirements, as representing 92
percent of the industry. ::

EVIDENCE SUBMITTED :

Pending a Public Hearing upon a Code of Fair Competition the
Rayon and Silk Dyeing and Printing Industry has been operating
under an Executive Order dated July 22, 1933. i
In 1929 the industry employed approximately 25,000 people with
a pay roll of forty million dollars and net sales of 106 million
dollars. In 1932 the number of people employed had dropped to ,;i
20,000 people, the pay roll to 23 million, and the net sales to 53 mil
lion dollars. Actual yardage processed during this period increased,
which shows that the drop in net sales was due to the shrinkage of.....
prices charged for services.
Since the Executive Order of July 22, 1933, went into effect be-
tween 4,000 and 5,000 people have been added to the industry, bring-: :~,
ing the number now employed up to the 1929 level. During the same
period wages have increased approximately 25 percent.
While wages paid are approximately 25 percent higher than in :-i
1929, the prices charged by the industry for its services today are
still approximately 30 percent less than the prices charged for con-
parable services in 1929 and from 30 to 40 percent less than the peak
prices from 1926 to 1929. :

RiSUMi OF PROVISIONS OF THE CODE

The Code provides for a minimum wage of 45 cents per hour for
male employees, 18 years of age and over, and 35 cents per hour for
female employees (engaged in tasks not heretofore performed by
males in the plant in which such females may bl employed),
(312)


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IL:ours are limited to 40 hours per week, except with respect to
weertain maintenance and. repair classifications, for which 48 hours
employment is permitted. A maximum of 48 hours per week is
placed upon employees engaged in continuous chemical processes.
i: oductive machinery is limited to (80) hours, except that used
solely for the processing of velvet may be operated not to exceed 120
hovrs: lOrin any one week.
-:f Bicept for the activities of office staff, engineers, electricians, ma-
chinists, firemen, maintenance employees, and watchmen, no plant is
allowed to operate between Saturday at 6:00 a.m. and Monday at
S6: 00 a.m., nor on legal holidays.

FINDINGS
I find that:
S 'ie Code complies in all respects with the pertinent provisions of
Title I of the National Industrial Recovery Act, including, without
limitation, subsection (a) of Section 7 and subsection (b) of Section
10 thereof.
The Institute of Dyers and Printers is representative of the Rayon
and Silk Dyeing and Printing Industry, and the bylaws of this asso-
ciation provide no inequitable restrictions to membership.
The Code is not designed to permit monopolies or to eliminate or
oppress small enterprises, and will not operate to discriminate against
S them, and will tend to effectuate the policy of Title I of the National
:i: Industrial Recovery Act.
Accordingly, I hereby recommend the approval of the Code of
Fair Competition for the Rayon and Silk Dyeing and Printing
I Industry.
Respectfully,
HUGH S. JOHNSON,
Administrator.













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ARTILE I-PTbPOSES ..

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code i!
Fair Competition for the Rayon and Silk Dyeing and Printing ia-
dustry, and shall be the standard of fair competition for such i ..
dustry and shall be binding upon every concern engaged t ...her..
ARTnCL II-DEFINITONS

1. The term "industry" as used herein shall include the dyei ia
finishing, bleaching, mercerizing, weighting, printing, or other pfle-;:||Bi
easing of rayon, silk, or of any mixture of the same, or of ayi
mixture of goods containing primarily silk or rayon, either in
piece or in the yarn, in the United States, but shall not include .m I
cerns (1) engaged in the weaving of cotton and/or rayon and w ihd
operations are required to be under the Cotton Textile Code; or.i::.. ::i
(2) primarily equipped for, and primarily engaged in, fMlnsh3i :k:l
cotton woven fabrics who may also be engaged in finishing rayin. .
and/or other synthetic fibre fabrics, and shall not include conlcer -.ia,'
not members of the-Institute, who may be engaged in the dyei .
finishing, bleaching, mercerizing, or other processing of rayon andv
other synthetic fibres in the yarn. Provided that any concern wii~.~ '
is a member of the Institute and engaged in the processing of rayou:i
and/or other synthetic fibres in the yarn, shall, as to suuCh ysiirB
processing, be governed as to competitive practices by the supple.i
mentary Code of Fair Practice, to be approved for the textile,
processing industry. t i
2. The term rayon" as used herein'shall include any synthetic:e;:
fibre made from cellulose. All provisions relating to rayon sh :all:
apply to synthetic textiles made from cellulose acetate or any oth6r
substance. .
3. The term "concern as used herein is defined to mean aniy on.e .,
now or hereafter engaged or engaging in this industry as indivlidu' ,!:2
partnership, firm, corporation, or otherwise (aiid shall incltidt.
therein proprietors, partners, officers, or directors when lawfully:
repreenting a concern).
4. The term "employee" as used herein shall include anyou.ne:
engaged in the industry in any capacity, receiving compensation nb l
for services, irrespective of the nature or method of payment of 'sucl. :
compensation.
5. The term "productive employee" as uset herein '.hall include
all employees except engineers, electricians, niachinists, nremen, ;offi::;:
staff, maintenance and transportation crews, and watchmen.
(314) ..
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;M::'i't arm "productive machinery as used herein shall include
plint mach es weighting units, dyeing equipment, and screen
T tables.
I. e term "service and/or "process and/or operations "
a ei:. : jed herein shall include,, dyeing, finishing, mercerizing, bleach-
':.'gk., weighting printing, engraving (when done by any concern in
*.i"i own plants), or any other work, labor, or services done by any
.. The term "Institute" as used herein shall mean the Institute
.:..,Dyers and Printers, a corporation not for pecuniary profit, organ-
.' s Pand existing under the laws of the State of New Jersey.
:The term Board of Trustees" as used herein shall mean the
.%jl ..ofo Trustees of the Institute.
10. The term "member of the industry as used herein includes
." a concern as hereinbefore defined.
1" :1. The term "signatory of the Code" as used herein means any
-iin.ember of the industry who shall voluntarily agree in writing as
prescribed in Article VIII Section 3.
12. The term By-Laws as used herein shall mean the by-laws of
the Institute.
1:::. The terms President ", "Act ", and "Administrator" as used
herein shall mean respectively the President of the United States,
the. National Industrial Recovery Act, and the Administrator of
Title I of said Act.
*. -* ARTrCLE III-HOURS

-: .No employee other than executives, supervisors, and representa-
tives shall be permitted to work more than 40 hours, in any one
"eek ,.except as hereinafter provided.
,'2.. The hours of labor of engineers, electricians, machinists, fire-
:ien; maintenance and transportation crews, and watchmen, shall not
:* i more than 48 hours in any one week, except in cases of emergency.
A" :ny emergency time in any plant shall be reported monthly to the
; .Code Authority.
3. The maximum hours of labor for office staff in the Industry shall
S'be"an average of'40 hours per week in each period of six months;
provided, however, that no office employee shall work more than 48
Sours in any one week, except in cases of emergency. Any emerg-
,::eny time in any office shall be reported monthly to the Code
Authority.
4". No productive employee shall be permitted to work more than
40 hours in any one week of plant operation as herein defined, nor
r i. :ine than 8 hours in any one day, provided that where productive
i iployees are engaged in continuous chemical processes such as boil-
:il. ofi bleaching, weighting, dyeing, or drying, where goods will be
l::jeotpardized by interruption, such employees may be required to
?; ork an additional 2 hours in any one day; provided further, that
I:::..::r ::vlproduetive emniloyee shall work more than 48 hours in any week
ofI::.::;:plnt operation, as herein defined.
:-*': '5:, No concern shall operate any productive machinery more than
8 : hoes nor: an plant in the Industry more than 96 hours in any
6k bwe it, nbei g g Mnday at 6:00 A.M., and ending Saturday at 6:00

i:" .:E:.:. : :










be operated, except for the aforesaid activities, between t1aBraqiP ,
at 6:00 A.M., and Monday at 6:00 A.M., nor on legal haiiday4 ,n:
During such periods of the year as the Code Authority shall .lmt"
time to time, determine as less-than-peak periods, the Code Auter.i:tl:
may, subject to the right of appeal to the Administrator, fix a leasi
number of hours per week for plant operation, and during .iud .
periods no concern shall, except for'the activities hereinbefore:..: .:t-
cited, operate any plant for more than the number of hours per l
week so fixed by the Code Authority. The Code Authority may" :
modify the provisions hereof for plant operation in any week :in. i:
which a legal holiday occurs, so as to permit employees to make i up
the number of hours lost by reason of such legal holiday.
6. Because of the seasonal character- of the velvet business ai&
notwithstanding the above sections, productive machinery used solely..:
for the processing of velvet may be operated not to exceed 120 hour :
in any one week, between Monday, 6 A.M., to Saturday, 6 A.M :
during an aggregate of sit months in any calendar year, provided
that prior notice be given to the Code Authority of the cominen sei ,.
ment and termination of the three-shift operation.' These hours
shall not be curtailed by the Code Authority during the calendar
years 1934 and 1935, and subsequently only upon notice to the plan s
affected, with the consent of the Administrator. Only such concerns
which have heretofore or which shall within ten (10) days after
the approval of this Code register with the Institute or the Code
Authority as processors of velvet shall be entitled to the benefits of :
this Section, except with the approval of the Administrator.
ARTICLE IV--WAGES

1. No male employee 18 years of age and over shall receive les :i'
than 455 per hour, nor shall any female employee (engaged in tasksi
not heretofore performed by a male in the plant in which such
female may be employed) receive less than 35 per hour. Male
employees under the age of 18 years shall receive not less than 80 ,.
of the prescribed minimum.
2. This Article establishes a minimum rate of pay, regardless 4: ..
whether an employee is compensated on a time-rate, piecework, ..;.,i
other basis.
3. In no event shall any employer pay any employee a wage rate
which will yield a less wage for a work week of 40 hours than suck~...ai:.:
employee was receiving for the same class of work for a long
week prior to June 26, 1933.
AwrrCLE V--GENERL LABOR PiROVISIONS .::i
1. No person under 16 years of age shall be employed in the i'::1
dustry, nor anyone under 18 years of age at operationsior occupationl
hazardous in nature or detrimental to health.: ',
2. Employees shall have the right to organize and bargain .eol",i
lectively through representatives of their own choosing, ad sha l
free from the interference, restraint, or coercion of employerss:
*








: -o their agents, in the designation of such representatives or
dI.organization or in other concerted activities for the purpose
A'iective bargaining or other mutual aid or protection.
iL"' *No employee and no one seeking employment shall be required
is. condition of employment to join any company union or to re-
jIfMi from joining, organizing, or assisting a labor organization of
afii Iwn choosing.
Jfil:4,tinployers shall comply with the maximum hours of labor,
:ilVi:niinum.rates of pay, and other conditions of employment ap-
p proved or prescribed by the President.
&'-Within each State this Code shall not supersede any laws of
:;ir-sh State imposing more stringent requirements on employers regu-
lating the age of employees, wages, hours of work, or health, fire,
or .igeaeral working conditions than under this Code.
l Fr Employers shall not reclassify employees or duties of occupa-
hr:tigons.performed by employees so as to defeat the purposes of the Act.
SARZTILE VI-ADMINISTRATION

S'i~-~~ F. further to effectuate the policies of the Act, the Board of
Srstees, to be elected annually by the members of the Institute and
bI: y. other signatories to this Code as hereinafter prescribed in Article
-VIII, is hereby designated, together with not more than three persons
Without vote and without cost to the Industry to be named by the
A4:l ainistrator, as a Code Authority, for the Industry.
S:: : The Code Authority shall be the representative of the Industry
in the administration and enforcement of this Code and shall have,
.:in addition to the specific powers herein conferred, all general powers
'i: M ee sary to such administration and enforcement, including the
fight to delegate authority to committees of its own members or
Otherwise, subject at all times to the right of the Administrator to
veto any action taken by it. Representatives designated by the
Administrator shall be given full opportunity to participate at all
.times in the activities of the Code Authority or committees thereof,
:-.:: -well as those of the Board of Trustees and the executive com-
M.nittees of the several divisions of the Institute.
& The Code Authority may from time to time present to the Ad-
S i nistrator recommendations based upon conditions in the Industry
as they may develop, which will tend to effectuate the operation of
the provisions of this Code and the policies of the Act. Such recom-
i s eadations, upon approval by the Administrator, shall have the
i san e force andeffect as any other provisions of this Code.
4: The Code Authority shall cooperate with the Administrator in
ip: making investigations as to the changing and observance of any
:.-: of the provisions of this Code at its own instance or on complaint
o :l any member of the Industry and shall report its findings and
I.rioi. immendations to the Administrator.
i 5.: W.ith a view to, keeping the President informed as to the ob-
feuAore t or r nonobservance of this Code of Fair Competition, and
a t::i whether the Industry is .taking appropriate step to effectuate
i: the eclared policy of the Act, each member of the Industry will
-ui*h duly certified, reports ,to the Code Authority hereinbefore
iLpided, or to such agency or agencies as the Code Authority may
.C i.;i i!:,











eral statistics for the industry or a general part thereo.t, e00P:i w
a violation of the Code is suspected and the Code A.utlf y
authorized the disclosure in connection with an investigati i
of. Due to the seasonal nature of. velvet processing, prd
ures shall be required from processors of velvet annually'.N
otherwise.
6. Every member of the Industr shall furnish to any gor
agency or agencies, such statistical information as the bs4iB
tor or the Code Authority may, from time to time, deem
for the purposes recited in Section 3 .(a) of the Act, and an r
and other information collected and compiled by the odij
thority, as heretofore provided, shall be transmitted to such gp~*
ment agencies as the Administrator may direct., .
7. The Institute is hereby constitute the agency of the Code i
thority (a) to secure, distribute, and exchange statistical data :
information; (b) to conduct investigations under its direction:; pi
. (c) to take such action from time to time as the Code AiithorityEq.
direct.
ARTICLE VII-PowERS OF THE CODE AUTHORITy.. -
The Code Authority shall have the following duties and powel
to the extent permitted by the Act, subject to the right of the Adi l
istrator to veto any action taken by it. : .;?
1. To designate representatives to act on a joint committee -wi
representatives of any other code authority of a related iMdust~
having reciprocal provisions in its code, to consider- question.iis i:.
garded by either code authority as of common concern with- refe r'eli
to the effectuation of the policies of the Act (including $questioW
to whether the operations of a given concern come within tIhe
diction of one of the other of the respective codes), and to take
action as they may jointly agree to be appropriate, stibject to..
veto of the Administrator. ....
2. To empower the Institute to secure, distribute, and exi
price information, without, however, disclosing the name 'of .',
customer.
Upon the request or direction of the Code Authority, all con
shall promptly forward and file with the Institute such i ta
data and information, which in its judgment may-be- eces..i
quately to inform all concerns regarding market conditionW s mai
any such data and information as may be required for the sup
and operation of the Code of Ethics..
3.,To require each concern to file with the Institute a lit o-t
prices thereafter to be quoted for each of the several services
by it. Concerns shall not quote or make prices other than thc4de
within ten days after filing with the Institute a iodiied .
prices. Any quotation of prices in violation of the provision
shall be deemed a violation of this Code unleO the Code A'
or the price committee thereof shall in advance have a.p.'


-.








S As, when, and if any concern shall file a modified list
oilpnes, any other concern may tile for itself a new list of prices to
&Fome effective simultaneously with the modified list first filed.
4. To establish or participate in the establishment of a Central
Aldg iJ tmnent Bureau for the adjustment t of all service claims by
t'6atoamers against concerns engaged in this Industry, and upon the
i establishment of such Bureau all claims shall be adjusted by said
i;: ii$: r 4eii and not otherwise, except with the consent of the Code
S..-Authority, provided that no concern shall be deprived hereby of the
S:.right to sue in its own name on any claim.
5. To install or cause to be installed throughout the Industry in
thti plant, books and records of each concern a uniform system or
.cost accounting which will result in obtaining by each concern and
i bi'ly the Institute the costs of production exclusive of any allowance
for depreciation or obsolescence.
S. No concern shall sell below cost (exclusive of depreciation and
l9b:solecence) as determined by the Code Authority and approved by
I: Adninistrator pursuant to the operation of the uniform system
9i.f cost accounting when installed and/or operating without the prior
sent of the Code Authority. Prior to the installation of such
Iost-accounting system no member of the Industry shall sell below
.li:cos: t as may be determined by the Code Authority, subject to the
Approval of the Administrator.
I: 6. To adopt a uniform contract which shall be the standard form
Contract for services rendered by the Industry, subject only to
ui ioh changes therein as may from time to time be authorized by the
SCode Authority. Other standard forms of contract appropriate to
: 'respective divisions of the Industry may be adopted by these divi-
". sins! subject to the approval of the Code Authority.
.:" ;:, To appoint a committee to determine the classification of colors
:..r dyeing and patterns for printing. Such classification shall be
thIe standards for the Industry and shall be observed by all concerns
I': engaged in the Industry.
Ji::: & To adopt, subject to the approval of the Administrator, a Code
of .Ethics to eliminate unfair competitive practices. Such Code of
E: hics, when adopted and approved, shall have the same force and
felect .as any other provisions of this Code. Such Code of Ethics
.shall provide that concerns, members of the Institute, engaged in the
processing of rayon and/or other synthetic fibres'in the yarn, shall,
as to such yarn processing, be governed as to competitive practices
!R!. by the supplementary Code of 1I air Practice, to be approved for the
Textile .Processing Industry.
I To define, construe, or interpret the provisions of this Code.
Ai; cJUAEm VIII
; 1. A:.....ny concern in the Industry which accepts its share of the cost
i':'awad .ponsibility as well as the benefits of such participation, may
ameia. member of the Institute. No initiation or entrance fee shall
ch8arged,but there shall be dues levied on such basis as may,
tin me to time, be fixed by the Board of Trustees thereof, subject
t si .. eto of the Administrator.

4-.4 ": : h .....










shall be entitled to vote as follows?
The average pay rolls for the three calendar or .s
each member, as fixed by the Bylaws, shall be divided W.
ples of $10,000, and each member shall have one vote fore'ii.
full multiple. If any member'has an annual average pay .-i"
less than $10,000 he shall, nevertheless, be entitled to one a.t
any election of Trustees, voting shall be cumulative, as de
the Statutes of New Jersey, provided that not more thin one Ttlat
shall be elected from any one concern. If any member has .an aSu
average pay roll of more than $1,000,000 he shall, nievetBel:s ;
entitled to only one hundred votes.
2. (a) Divisions composed of concerns interested in the pi
or finishing of particular fabrics, or in a particular line of wl.
shall be organized within the Instituite with the approval, or bir e
direction, of the Board of Trustees. Each such division shallsutia
to the approval of said Board of Trustees, concern itself only w.i
that branch of the Industry delegated to it. A concern may lbe k
member of more than one Division and vote in each (such ~a''lt
be allocated among such Divisions as may be permitted by flt
Bylaws). '
(b) Each Division, for the purpose of administering the pro'iM
of this Code, to secure adherence thereto, and otherwise to cart o
within the Division the policies of the Act, shall, subject to thie
proval of the Board of Trustees, be governed by an executive e-eit
mittee of five. Four members of each executive committee shall li
elected by the Division membership, as provided in Section 1 bft
Article. The fifth member of each executive committee. shalE
appointed by the Board of Trustees; provided, however, that:
appointee, or his concern, shall be a member of the Division, and !"
not more than one member of the committee shall be eledteid A
appointed from any one concern. The Secretary of the Ins
shall be the permanent secretary of each executive committee.
(c) If a Division fails to perform its obligations as provided '.'
under, the Board of Trustees shall provide for the administrati
this Code as if said Board of Trustees were the executive '
of the Division concerned, and upon the passage of'a resoli
the Board of Trustees taking over such functions, the executive'
mittee of said Division shall for all purposes ease to exist
such action of the Board of Trustees shall be subject to a
the Administrator.
(d) In the event that with respect to the determination -'
a difference of opinion shall arise between an executive om
and the Board of Trustees, such difference of opinion shilla lbe
termined by arbitration as provided in the Bylaws by three
trators to be selected as follows: One arbitrator shall be
by the executive committee, one arbitrator shall .be selet
the Board of Trustees and the third arbitrator shall beI a.
by such original arbitrators, or, in default thereof, by th
of the American Arbitration Association:' i.
If two or more division executive committee sha"ft ih''Jrfi '
each other and/or with the Board of Trustees as to any i'i. ,:

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.in the preceding two paragraphs, or the next succeeding
aph of this article, such difference of opinion shall be deter-
by one arbitrator to be selected by the Board of Trustees
with the division executive committees involved in such dif-
lice of opinion. In the event of the failure to agree within five
upon such arbitrator, the same shall be appointed by the
S silent of the American Arbitration Association.
e" the event that any amendment of this Article is proposed
1the 13oard of Trustees, the same shall be submitted to each of
e division executive committees, and if any division executive
tJU i ittee fails to concur therein, the propriety of such proposed
'..s.dment shall be determined by arbitration, as provided in the
ii ws by one arbitrator to be selected by the Board of Trustees
iMnlly with the division executive committees. In the event of the
ifre to agree upon such arbitrator, the same shall be appointed
thte President of the American Arbitration Association.
(f:: ) In order to prevent any inequalities that may arise in the
~ill.0niomng of this Section 2 and to effectuate the policies of Title I
b.f the Act, the administration of each of the provisions hereof shall
b: bsubjgect to the veto of the Administrator.
S I.Z 'Members of the Industry who are complying with the require-
' i:ant of the Code, and agree in writing either individually, or
,.telugh trade associations of which they are members to abide by
I'he requirements of the Code, and to pay their pro rata share of the
allies e of administration thereof, shall be entitled to a vote in the
h!j!:ltion of the Board of Trustees, and participate in the nomination
J:: O: eadidates for election, on the same basis as a member concern,
~:jiA to the benefits of the activities of the Code Authority and to
iik;u~::e use of the N.R.A. Code insigna. Such nominations and elec-
ltid'i shall be conducted under the supervision of the Code Authority
sim as to avoid any discrimination among members of the Industry.
4. For the purpose of administering this Code, the Code Authority,
ii i'bjeet- to the veto of the Administrator, is authorized to charge
:ieach nc:: mern a percentage of the gross volume of business done by
Piea:i' such concern during the preceding calendar or fiscal year; and
a .nll gw the operation of this Code to make such further charges as
iWmavy e found necessary. In the case of concerns which process
, exwlsi'ely the product of their own looms, the amount to be charged
I:'frie;l h concern shall be determined equitably by its pay roll in con-
iectiotwith operations under this Code.
*i',. Such funds collected for the administration of this Code shall
'be eposited by the treasurer of the Institute in a special account
I used only for defraying the expenses of administration thereof,
di:r ithe reimbursement of the Institute and for such expenses as may
i hrfeafer be incurred in complying with conditions of this Code.
Ar. crm IX
"A. A. iI
t in the case of complaint and/or dispute on any matter affecting
amd.ln tiort n of tie. Code, including a dispute as to the accuracy
iJ: inrmatio:n .rnished pursuant to the provisions of this
t icshall fail or refuse to cooperate with Code Authority,
a.hi' the request- of-the Code Authority, may ap-

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investigation defined as aforesaid shall result in a determitg
a signatory of the Code was not complying with the pimbilts
this Code, the cost of such investigation shall be borne and pa.
by such member of the Industry.,
ARTICLE X
No concern engaged in the printing of any fabrics in tlis. Iadi
shall prepare, engrave, or print, or submit to an engraver cor p*W
for engraving or printing, any pattern or design which sharIE -
previously have been registered in the United States Patent
or in any other office or bureau approved by the Board of Trultee-'q
The Board of Trustees is hereby empowered by resolutions ttt1j
adopted, to adopt all administrative measures necessary to effeatei
this provision and define and limit the same. : :.
ARTICLE XI
1. Each concern shall register with the Code Authority an invet
tory of its productive machinery as defined in the Code in place as i
December 1, 1933, or then under contract but not installed, ~f i
inventory to be duly certified to as to its completeness and corr
2. On and after January 1, 1934, each concern shall file a..re.1
monthly with the Institute, setting forth any installation of .
tional productive machinery (new or second-hand) as defined int
Code installed by it, and specifying the extent to which such-i
lation is for the replacement of similar productive machinery aisd sq
explanation of the same, all duly certified.
3. After the effective date hereof, each concern, prior to the
lation of productive machinery as defined in this. Code not the
fore contracted for, except for such replacement, shall file app!
tion with the Institute for transmission through the Code Au.
to the Administrator, stating the circumstances of and the ire
for such installation and shall secure a certificate from the .A
istrator that such installation will be consistentwith ffectuat
policy of Title I of the Act during the period of'the emerged
4. The Code Authority shall examine into such applicati
such certificate and the facts as to the circumstances: of
reasons for such proposed installation and shall transmit to .the
ministrator such application with any statement submitted h|
applicant, together with its report of such examination of th, e
and with its recommendation as to the granting or withholding.
the Administrator of such certificate to such applicant.
by the Administrator inconsistent with such recommendationLi: i
be taken only after notice to the Code Authority.
5. Nothing in Sections 3 and 4 of this Article. shall s
velvet processing machinery during the calendqg year 19I:
after the Code Authority may make such sections apptia
after due notice to all concerns affected. All reports e








.Ertirdl shall be deemed confidential and shall not be disclosed
as .part of general statistics for the industry or a general
Shereof or, when necessary, in connection with an application
'Section 3, hereof, except by order of the Administrator.
'~A: ARTICLE XII-MODIFICATION

'":1. .This Code and all the provisions thereof are expressly made
ect to the right of the President, in accordance with the provi-
|Ih of subsection (b) of Section 10 of the Act, from time to time
Vz ancel or modify any order, approval, license, rule, or regulation
u' ud under Title I of said Act and specifically, but without limita-
7 : to the right of the President to cancel or modify his approval
41. this Code or any conditions imposed by him upon his approval
iB-rteof, but the right of the Institute, or any member of the Industry,
S::object thereto is reserved.
i:'. Such of the provisions of this Code as are not required to be
inteluded therein by the Act may, upon the application of or notice
'to the Institute and with the approval of the President be modified or
eliminated in such manner as may be indicated by the needs of the
.'blic, by changes in circumstances, or by experience; all the pro-
visions of this Code, unless so modified or eliminated, shall remain in
effect until the expiration date of Title I of the Act:.
*. B. In order to enable the Industry to conduct its operations subject
li.i the provisions of this Code, and with those dealing with the Indus-
ti and otherwise to effectuate the purpose of Title I of the Act, sup-
i.emeantary provisions of this Code or additional codes may be sub-
e:dtted from time to time for the approval of the President and/or
*eis Code may be amended or modified with the approval of the
i President.
ARTICLE XIII-MONOPOLIES

I provision of this Code shall be so applied as to permit monopo-
oi r monopolistic practices, or to eliminate, oppress, or discrimi-
tes against small enterprises.

ARTICLE XIV-EFFECTIVE DATE

:;This Code shall become effective immediately on its approval by
?I. Pr resident.
ApDiprioved Code No. 172.
i3|stry No. 230-07.

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Full Text

PAGE 1

Approved Code No. 172 Registry No. 230-07 NATIONAL RECOVERY ADMINISTR-A-TION CODE OF FAIR COMPETITION FOR THE RAYON AND SILK DYEING AND PRINTING INDUSTRY AS APPROVED ON DECEMBER 21, 1933 BY PRESIDENT ROOSEVELT 1. Executive Order 2. of Transmittal 3. Code UNITED STATES GOVERNME N T PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. -------Price 5 cents v'

PAGE 2

This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.O., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEP ARTMEN'f OF COMMERCE Atlanta, Ga.: 504 Post Office Buildiug. Birmingham, Ala. : 257 Federal Building. Boston, 1\lass. : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerc e Buil
PAGE 3

Approved Code No. 172 CODE OF FAIR COMPETITION for the RAYON AND SILK DYEING AND PRINTING INDUSTRY As Approved on December 21, 1933 By PRESIDENT ROOSEVELT Executive Order An application having been duly made, pursuant to and in full compliance with the provisions of title I of the National Industrial Recovery Act, approved June 16, 1933, for my approval of a Code of Fair Competition for the Rayon and Silk Dyeing and Printing Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the said code of fair competition together with his recommendations and findings with respect thereto, and the Administrator having found that the said code of fair competition complies in all respects with the pertinent provisions of title I of said act and that the require ments of clauses (1) and (2) of subsection (a) of section 3 of the said act have been met: NOW, THEREFORE, I, Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in me by title I of the National Industrial Recovery Act, approved June 16, 1933, and otherwise, do adopt and approve the report, recommendations and findings of the Administrator and do order that the said code of fair competition be and it is hereby approved, to become effective in place of the code of labor provisions for said industry heretofore approved by me on July 22, 1933. Approval recommended: HuGH S. JoHNSON, Administrator. THE W mTE HousE, D e c ember 1933. FRANKLIN D. ROOSEVELT. 27202----244-225----33 (311)

PAGE 4

DECEUBER 9, 1933. THE PRESIDENT' The White Ho use. INTRODUCTION Sm: This is a report on the Hearing of the Code of Fair Competition for the Rayon and Silk Dyeing and Printing Industry. The hearing was held, in the Garden Room of the Mayflower Hotel in 'Vashington, D.C., on November 10, 1933, in accordance with the provisions of the National Industrial RecoYery Act. Every person who filed an appearance was freely heard in public and all statutory and r egulatory requirements were complied with. Attached herewith is n. copy of the Code which was presented by duly qualified and authorized representatives of the above industry, complying with the statutory requirements , a s representing 92 percent of the industry. • EviDENCE SUBMITTED Pending a Public Hearing upon a Code of Fair Competition the Rayon and Silk Dyeing and Printing Industry has been operating under an Executive Order dated July 22, 1933: In 1929 the industry employed approximately 25,000 people with a pay roll of forty million dollars and net sales of 106 million dollars. In 1932 the number of people employed had dropped to 20,000 people, the pay roll to 23 million, and the net sales to 53 mil lion dollars . Actual yardage processed during this period increa s ed2 which shows that the drop in net sales was due to the shrinkage ot prices charged for services. Since the Executive Order of July 22, 1933, went into effect be tween 4 , 000 and 5 , 000 people have been added to the industry, bringing the number now employed up to the 1929 level. During the same period wages have increa s ed approximately 25 percent. While w ages paid are approximately 25 percent higher than in 1929, the price s charged by the industry for its services today are still approximately 30 percent less than the prices charged comparable se rvices in 1929 and from 30 to 40 percent les s than the peak prices from 1926 to 1929. R:Esm\IE OF Pnm rsroN s OF THE ConE The Code provides for a minimum wage of 45 cents per h o ur for male empl oyees 18 years of age and over, and 35 cents p e r hour for fem a le e mploy ees (engaged in tas k not heretofore performed by males in the plant in which s u c h f e male s may be employed). (312)

PAGE 5

313 Hours are limited to 40 hours per week, except with respect to certain maintenance and. repair classifications, for which 48 hours employment is permitted. A maximum of 48 hours per week is placed upon employees engaged in continuous chemical processes. Productive machinery is limited to (80) hours, except that used solely for the processing of velvet may be operated not to exceed 120 hours in any one week. Except for the activities of office staff, engineers, electricians, ma chinists, firemen, maintenance employees, and watchmen, no plant is allowed to operate between Saturday at 6: 00 a.m. and Monday at 6: 00 a.m., nor on legal holidays . FINDINGS I find that: The Code complies in all respects with the pertinent provisions of Title I of the National Industrial Recovery Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 thereof. The Institute of Dyers and Printers is representative of the Rayon and Silk Dyeing and Printing Industry, and the bylaws of this asso ciation provide no inequitable restrictions to membership. The Code is not designed to 1?ermit monopolies or to eliminate or oppress small enterprises, and w1ll not operate to discriminate against them, and will tend to effectuate the policy of Title I of the National Industrial Recovery Act. Accordingly, I hereby recommend the approval of the Code of Fair Competition for the Rayon and Silk Dyeing and Printing Industry. Respectfully, HUGH s. JOHNSON' Administrator.

PAGE 6

CODE OP FAIR COMPETITION FOR THE RAYON AND SILK DYEING AND PRINTING INDUSTRY ARTICLE I-PURPOSES To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Code of Fair Competition for the Rayon and Silk Dyeing and Printing Industry, and shall be the standard of fair competition for such industry and shall be binding upon every concern engaged therein. ARTICLE II-DEFINITIONS 1. The term " industry " as used herein shall include the dyeing, finishing, bleaching, mercerizing, weighting, printing, or other proc essing of rayon, silk, or of any mixture of the same, or of any mixture of goods containing primarily silk or rayon, either in the piece or in the yarn, in the United States, but shall not include con cerns (1) engaged in the weaving of cotton and/or rayon and whose operations are required to be under the Cotton Textile Code, or (2) primarily equipped for, and primarily engaged in, finishing cotton woven fabrics who may also be engaged in finishing rayon and/or other synthetic fibre fabrics, and shall not include concerns, not members of the Institute, who may be engaged in the dyeing, finishing, bleaching, mercerizing, or other processing of rayon and/or other synthetic fibres in the yarn. Provided that any concern which is a member of the Institute and tngaged in the processing of rayon and/or other synthetic fibres in the yarn, shall, as to such yarn processing, be goYerned as to competitive practices by the supplementary Code of Fair Practice, to be approved for the textile processing industry. 2. The term "rayon" as used herein shall include any synthetic fibre made from cellulose. All provisions relating to rayon shall apply to synthetic textiles made from cellulose acetate or any other substance. 3. The term " concern " as used herein is defined to mean any one now or hereafter engaged or engaging in this industry as individual, partnership, firm, corporation, or otherwise (and shall include therein proprietor , partners, officers, or directors when lawfully representing a concern). 4. The term "employee" as used herein shall include anyone engaged_ in indu_ try in any capacity, receiving compensation for 1rrespecbve of the nature or n1ethod of payment of such compensatwn. 5 . The term productive employee ' as used herein shall include all employees except engineers, electricians, machinists, firemen, office staff, maintenance and transportation crews, and watchmen. (314)

PAGE 7

315 6. The term "productive machinery" as u sed herein shall include only print machines, weighting dyeing equ i pment, and scree n printing tables. 7. The term "service" and/or "process" and/or " operations" as used herein shall include dyeing, finishing, merc e rizing, bleaching, weighting, printing, engraving (when done by : :my concern in its own plants), or any other work, labor, or services done by any concern. 8. The term "Institute" as used herein shall mean the Institute of Dyers and Printers, a corporation not for pecuniary profit, organized and existing under the laws of the State of New Jersey. 9. The term "Board of Trustees" as used herein shall mean the Board of Trustees of the Institute. 10. The term " member of the industry " as u sed herein includes any concern as hereinbefore defined. 11. The term " signatory of the Code " as used herein means any member of the industry who shall voluntarily agree in writing as prescribed in Article VIII, Section 3. 12. The term" By-Laws" as used herein shall mean the by-law s of the Institute. 13. The terms "President", "Act", and "Administrator" as used herein shall mean respectively the President of the United States, the National Industrial Recovery Act, and the Administrator of Title I of said Act. ARTICLE III-HoURs 1. No employee other than executives, supervisors, and representa tives shall be permitted to work more than 40 hours, in any one week, except as hereinafter provided. 2. The hours of labor of engineers, electricians, machinists, fire men, maintenance and transportation crews, and watchm e n, shall not be more than 48 hours in any one week, except in case s of eme rgency. Any emergency time in any plant shall be reported monthly to the Code Authority. 3. The maximum. hours of labor for office staff in the Industry shall be an average of 40 hours per week in each period of s ix months; :provided, however, that no office employee shall work more than 48 hours in any one week, except in cases of emergency. Any emerg ency time in any office shall be reported monthly to the Code Authority. 4. No productive employee shall be permitted to work more than 40 hours in any one week of plant operation as herein defined, nor more than 8 hours in any one day, provided that where productive employees are engaged in continuous chemical proces ses such as boil off, bleaching, weighting, dyeing, or drying, where goods will be jeopardized by interruption, such employees may be required to work an additional 2 hours in any one day; provided further, that no productive employee c:hall work more than 48 hours in any week of plant operation, as herein defined. 5. No concern shall operate any proclucti v.e machinery more than 80 hours nor any plant in the Industry more than 96 hours in any week, begi .nning Monday at G: 00 A.M., and ending Saturday at 6: 00

PAGE 8

316 A.M., except for the activities of office staff, engineers, electricians1 machinists, firemen, maintenance, and watchmen. No plant shall be operated, except for the aforesaid activities, between Saturday at 6: 00 A.M., and l\ionday at 6: 00 A.M., nor on legal holidays. During such periods of the year as the Code Authority shall, from time to time, deternline as less-than-peak periods, the Code Authority may, subject to the right of appeal to the Administrator, fix a lesser number of hours pel.' week for plant operation, and during such periods no concern shall, except for the activities hereinbefore re cited, operate any plant for more than the number of hours per week so fixed by the Code Authority. The Code Authority may modify the provisions hereof for plant operation in any week in which a legal holiday occurs, so as to permit emp lo yees to n1ake up the number of hours lost by reason of such legal holiday. 6. Because of the seasonal character of the velvet business and notwithstanding the above sections, productive machinery used solely for the processing of velvet may be operated not to exceed120 hours in any one week, between Monday, 6 A.1L, to Saturday, 6 A.M., during an aggregate of six months in any calendar year, provided that prior notice be given to the Code Authority of the commence ment and termination of the three-shift operation. These hours shall not be curtailed by the Code Authority during the calendar years 1934 ancl1935, and subsequently only upon notice to the plants affected, with the consent of the Administrator. Only such concerns which have heretofore or which shall within ten (10) days after the approval of this Code register with the Institute or the Code Authority as processors of velvet shall be entitled to the benefits of this Section, except with the approval of the Administrator. ARTICLE IV-'V AGES 1. No male employee 18 years of age and over shall receive less than 45 per hour, nor shall any female employee (engaged in tasks not heretofore performed by a male in the plant in which such female may be employed) receive less than 35 per hour. Male employees under the age of 18 years shall receive not less than 80% of the prescribed 1ninimum. 2. This Article establishes a minimum rate of pay, regardless of whether an employee is compensated on a time-rate, piecework, or other basis. 3. In no event shall any employer pay any employee a wage rate whi h will yield a less wage for a work week of 40 hours than such employee was receiving for the same class of work for a longer week prior to June 26, 1933. ARTICLE V-GENERAL LABOR PROVISIONS 1. No person under 16 years of age shall be employed in the industry, nor anyone under 18 years of age at operations or occupations hazardou in nature or detrimental to health. 2 .. Employees shall have the right to organize and bargain col lectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of

PAGE 9

317 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 prote ction. 3. 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 a ssisting a labor organization of his own choosing. 4. Employers shall comply with the n1aximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed the Preside nt. 5. Within each State this Code shall not supersede any laws of such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, or general working conditions than under this Code. 6. Employers shall not reclas sify employees or duties of occupa tions performed by employees so as to defeat the purposes of the Act. ARTICLE VI-ADMINISTRATION 1. Further to effectuate the policies of the Act, the Board of Trustees, to be elected annually by the members of the Institute and by other signatories to this Code as hereinafter prescribed in Article VIII, is hereby designated, together with not more than three persons without vote and without cost to the Industry to be named by the Administrator, as a Code Authority, for the Industry. 2. The Code Authority shall be the representative of the Industry in the administration and enforcement of this Code and shall have, in addition to the specific powers herein conferred, all general powers necessary t o such administration and enforcement, including the right to delegate authority to committee s of its own members or otherwise, subject at all times to the right of the Administrator to veto any action taken by it. Representatives designated by the Administrator shall be given :full opportunity to participate at all times in the activitie s of the Code Authority or committees thereof, as well as those of the Board of Trustees and the executive com mittees of the several divisions of the Institute. 3. The Code Authority may from time to time present to the Administrator recommendations based upon conditions in the Industry as they may develop, which will tend to effectuate the operation of the provisions of this Code and the policies of the Act. Such recom mendations, upon approval by the Administrator, shall have the same force and effect as any other provisions of this Code. 4. The Code Authority shall cooperate with the Administrator in making investigations as to the changing and ob s ervance of any of the provisions of this Code at its own instance or on complaint of any member of the Industry and shall report its findings and recommendations to the Administrator. 5. vVith a view to keeping the President informed as to the ob servance or nonobservance of this Code of Fair Competition, and as to whether the Industry is taking appropriate steps to effectuate the declared policy of the Act, each member of the Industry will furnish duly certified reports to the Code Authority hereinbefore provided, or to s uch agency or agencies as the Cod e Authority may

PAGE 10

318 designate. These reports shall be in substance and in such form as the Code Authority may require, subject to the approval of the Administrator. The reports furnished as aforementioned shall be deemed confidential and shall not be disclosed except as part of general statistics for the Industry or a general part thereof, except where a violation of the Code is suspected and the Code Authority has authorized the disclosure in connection with an investigation there of. Due to the seasona l nature of velvet processing, production figures shall be required from processors of velvet annually and not otherwise. 6. Every member of the Industry shall furnish to any government agency or agencies, such statistical information as the Administrator or the Code Authority may, from time to time, deem necessary for the purposes recited in Section 3 (a) of the Act, and al!y reports and other information collected and compiled by the Code Authority, as heretofore provided, shall be transmitted to such government agencies as the Administrator may direct. 7. The Institute is hereby constituted the agency of the Code Authority (a) to secure, distribute, and exchange statistica l data: and information; (b) to conduct investigations under its direction; and ! (c) to take such action from time to time as the Code Authority may direct. ARTICLE VII-PowERS oF THE CoDE AUTHORITY The Code Authority shall have the following duties and powers, to the extent permitted by the Act, subject to the right of the Administrator to veto any action taken by it. 1. To designate representatives to act on a joint committee with representatives of any other code authority of a related industry, having reciprocal provisions in its code, to consider questions regarded by either code authority as of common concern with reference to the effectuation o the policies of the Act (including questions as to whether the operations of a given concern come within the jurisdiction of one of the other of the respective codes), and to take such action as they may jointly agree to be appropriate, Bubject to the veto of the Administrator. 2. To empower the Institute to secure, distribute, and exchange price information, without, however , disclosing the name of the customer. Upon the request or direction of the Code Authority, all concerns shall promptly forward and file with the Institute such statistical data and information, which in its judgment may be necessary ade quately to inform all concerns regarding market conditions, and also any such data and information as may be required for the supervision and operation of the Code of Ethics. 3. To require each concern to file with the Institute a list of the prices thereafter to be quoted for each of the several services rendered by it. Conc erns shall not quote or make prices other than those filed within ten days after filing with the Institute a modified list o prices. Any quotation of prices in violation of the provisions hereof hall be deemed a violation of this Code unless the Code Authority or the price committee thereof shall in advance have approved such

PAGE 11

319 quotations. As, when, and if any concern shall file a modified list of prices, any other concern may tile for itself a new list of prices to become effective simultaneously with the modified list first filed. 4. To establish or participate in the establishment of a Central Adjustment Bureau for the adjustment of all se rvice claims by customers against concerns engaged in this Industry, and upon the establishment of such Bureau all claims shall be adjusted by said Bureau and not otherwise, except with the consent of the Code Authority, provided that no concern shall be deprived hereby of the right to sue in its own name on any claim. 5. To install or cause to be installed throughout the Industry in the plant, books and records of each concern a uniform system or cost accounting 'vhich will result in obtaining by each concern and by the Institute the costs of production exclusive of any allowance for depreciation or obsolescence. No concern shall sell below cost (exclusive of depreciation and obsolescence) as determined by the Code Authority and approved by the Administrator pursuant to the operation of the uniform system of cost accounting when installed and/or operating without the prior consent of the Code Authority. Prior to the installation of such cost-accounting system no member of the Industry shall sell below cost, as may be determ.ined by the Code Authority, subject to the approval of the Administrator. ti. To adopt a uniform contract which shall be the standard form of contract for services rendered by the Industry, subject only to such changes therein as 1nay from time to time be authorized by the Code Authority. Other standard forms of contract appropriate to respective divisions of the Industry may be adopted by these divi sions, subject to the approval of the Code Authority. 7. To appoint a committee to determine the classification of colors for dyeing and patterns for printing. Such clasEiification shall be the standards for the Industry and shall be observed by all concerns engaged in the Industry. 8. To adopt, subject to the approval of the Administrator, a Code of Ethics to eliminate unfair competitive Such Code of Ethics, when adopted and approved, shall have the same force and effect as any other provisions of this Code. Such Code of Ethics shall provide that concerns, members of the Institute, engaged in the proce ssing of rayon and/or other synthetic fibres in the yarn, shall, as to such yarn processing, be governed as to competitive practices by the supplementary Code of :Fair Practice, to be approved for the Textile Processing Industry. 9. To define, construe, or interpret the provisions of this Code. ARTICLE VIII 1. Any concern in the Industry which accepts its share of the cost and responsibility as well as the benefits of such participation, may become a member of the Institute. No initiation or entrance fee shall be charged, but there shall be dues levied on such basis as may, from time to time, be fixed by the Board of Trustees thereof, subject to the veto of the Administrator.

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320 Within the Institute, or Division thereof, each member concern, which shall have paid its dues in accordance with the Bylaws, shall be entitled to vote as follows: The average pay rolls for the three calendar or fiscal years of each member, as fixed by the Bylaws, shall be divided into multiples of $10,000, and each member shall have one vote for each such full multiple. If any member has an annual average pay roll of less than $10,000 he shall, nevertheless, be entitled to one vote. At any election of Trustees, voting shall be cumulative, as defined by the Statutes of New Jersey, provided that not more than one Trustee be elected from any one concern. If any member has an annual average pay roll of more than $1,000,000 he shall, nevertheless, be entitled to only one hundred votes. 2. (a) Divisions composed of concerns interested in the processing or finishing of particular fabrics, or in a particular line of work, shall be organized within the Institute with the approval, or b.y the direction, of the Board of Trustees. Each such division shall, subject to the approval of said Board of Trustees, concern itself only with that branch of the Industry delegated to it. A concern may be a member of more than one Division and vote in each (such vote to be allocated among such Divisions as may be permitted by the Bylaws). (b) Each Division, for the purpose of administering the provisions of this Code, to secure adherence thereto, and otherwise to carry out within the Division the policies of the Act, shall, subject to the approval of the Board of Trustees, be governed by an executive com mittee of five. Four members of each executive committee shall be elected by the Division membership, as provided in Section 1 of this Article. The fifth member of each executive committee shall be appointed by the Board of Trustees; provided, however, that such appointee, or his concern, shall be a member of the Division, and that not more than one member of the committee shall be elected or appointed from any one concern. The Secretary of the Institute shall be the permanent secretary of each executive committee. (c) If a Division fails to perform its obligations as provided hereunder, the Board of Trustees shall proYide for the administration of this Code as if said Board of Trustees were the executive committee of the Division concerned, and upon the passage of a resolution by the Board of Trustees taking over such functions , the executive com mittee of said Division shall for all purposes cease to exist. Any such action of the Board of Trus tees shall be subject to appeal to the Administrator. (d) In the event that with respect to the determination of costs a difference of opinion shall arise between an executive committee and the Board of Trustees, such difference of opinion shall be determined by arbitration as provided in the Bylaws by three arbitrators to be selected as follows: One arbitrator shall be selected by the executive committee, one arbitrator shall be selected by the Board of Trustees and the third arbitrator shall be selected by such original arbitrators, or, in default thereof by the President of the American Arbitration Association. ' If two or more division executive committees shall differ with each other and/or with the Board of Trustees as to any matter em-

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321 braced in the preceding two paragraphs, or the next succeeding paragraph of this article, such difference of opinion shall be determined by one arbitrator to be selected by the Board of Trustees jointly with the division executive committees involved in such dl.f ference of opinion. In the event of the failure to agree within five days upon such arbitrator, the same shall be appointed by the President of the American Arbitration Association. (e) In the event that any amendment of this Article is proposed by the Board of Trustees, the same shall be submitted to each of the division executive committees, and if any division executive committee fails to concur therein, the propriety of such proposed amendment shall be determined by arbitration, as provided in the By-laws by one arbitrator to be selected by the Board of Trustees jointly with the division executive committees. In the event of the failure to agree upon such arbitrator, the same shall be appointed by the President of the American Arbitration Association. (f) In order to prevent any inequalities that may arise in the functioning of this Section 2 and to effectuate the policie s of Title I of the Act, the administration of each of the provisions hereof shall be subject to the veto of the Administrator. 3. Members of the Industry who are complying with the require ments of the Code, and agTee in writing either individually, or through trade associations of which they are members to abide by the requirements of the Code, and to pay their pro rata share of the expense of administration thereof, shall be entitled to a vote in the election of the Board of Trustees, and participate in the n omination of candidates for election, on the same basis as a memb er concern, and to the benefits o:f the activities of the Code Authority and to make use of the N.R.A. Code insigna. Such nominations and elec tions shall be conducted under the supervision of the Code Authority so us to avoid any discrimination among members of the Industry. 4. For the purpose of administering this Code, the Code Authority, subject to the veto of the Administrator, is authorized to charge each concern a percentage of the gross volume of business done by each such concern during the preceding calendar or fiscal year; and during the operation of this Code to make such further charges as may be found necessary. In the case of concerns which process exclusively the product of their own looms, the amount to be charged each concern shall be determined equitably by its pay roll in con nection with operations under this Code. 5. Such funds collected for the administration of this Code shall be deposited by the treasurer of the Institute in a special account and used only for defraying the expenses of administration thereof, for the reimbursement of the Institute and for such expenses as may hereafter be incurred in complying with conditions of this Code. ARTICLE IX If, ]n the case of complaint andjor dispute on any matter affecting the administration of the Code, including a dispute as to the accuracy of any information furnished pursuant to the provisions of this Code, a concern shall fail or refuse to cooperate with Code Authority, the Administrator, on the request of the Code Authority, may ap-

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322 point a certified public accountant who shall have the power to view the relevant books of accounts, records, and files of any concern. No such information shall be revealed to anyone but the members of the staff of the Administration and/or the Administrator. If such investigation defined as aforesaid shall result in a determination that a signatory of the Code was not complying with the provisions of this Code, the cost of such investigation shall be borne and paid for by such member of the Industry. ARTICLE X No concern engaged in the printing of any fabrics in this Industry shall prepare, engrave, or print, or submit to an engraver or printer for engraving or printing, any pattern or design which shall not previously have been registered iD the United States Patent Office or in any other office or bureau approved by the Board of Tru -tees. The Board of Trustees is hereby empowered by resolutions to be adopted, to adopt all administrative measures necessary to effectuate this provision and define and limit the same. ARTicLE XI 1. Each concern shall register with the Code Authority an inventory of its productive machiner:r as defined in the Code in place as of December 1, 1933, or then under contract but not installed, such inventory to be duly certified to as to its completeness and correctness. 2. On and after January 1, 1934, each concern shall file a report monthly with the Institute, setting forth any installation of additional productive machinery (new or second -hand) as defined in this Code installed by it, and specifying the extent to which such installation is for the replacement of similar productive machinery and an explanation of the same, all duly certified. 3. After the effective date hereof, each concern, prior to the installation of productive machinery as defined in this Code not thereto fore contracted for, except for such replacement, shall file application with the Institute for transmission through the Code Authority to the Administrator, stating the circumstances of and the reasons for such in stallation and shall secure a certificate from the Administrator that such installation will be consistent with effectuating the policy of Title I of. the Act during the period of the emergency. 4. The Code Authority shall examine into such application for such certificate and the facts as to the circumstances of and the reasons for such proposed installation and shall transmit to the Administrator s uch application with any statement submitted by the applicant, together with its report of such examination of the facts and with its recommendation as to the granting or withholding by the Administrator of such certificate to such applicant. Action by the Administrator inconsistent with such recommendation shall be taken only afte r notice to the Code Authority. 5. Nothing in Sections 3 and 4 of this Article shall apply to velvet proce sing machinery during the calendar 3rear 1934, and thereafter the Code Authority may make such sections applicable only after due notice to all concerns affected. All reports called for by

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323 this Article shall be deemed confidential and shall not be disclosed except as part of general statistics for the industry or a general part thereof or, when necessary, in connection with an application under Section 3, hereof, except by order of the Administrator. ARTICLE 1. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provi sions of subsection (b) of Section 10 of the Act, from tirne to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act and specifically, but without limitation, to the right of the President to cancel or modify his approval of this Code or any conditions impose d by him upon his approval thereof, but the right of the Institute, or any member of the Industry, to object thereto is reserved. 2. Such of the provisions of this Code as are not required to be included therein by the Act may, upon the application of or notice to the Institute and with the approval of the President be modified or eliminated in such manner as may be indicated by the ne eds of the public, by changes in circumstances, or by experience ; all the pro visions of this Code, unless so modified or eliminated, shall remain in effect until the expiration date of Title I of the Act. 3. In order to enable the Industry to conduct its operations subjec t to the provisions of this Code, and with those dealing with the Industry and otherwise to effectuate the purpose of Title I of the Act, sup plementary provision s of this Code or additional codes may be s ubmitted from time to time for the approval of the President andjor this Code may be amended or modified with the approval of the President. ARTICLE XIII-MONOPOLIES No provision of this Code shall be so applied as to permit monopo lies or monopolistic practices, or to eliminate, oppress, or discrimi nate against small enterprises. ARTICLE XIV-EFFECTIVE D .ATE This Code shall become effective immediately on its approval by the President. Approved Code No. 172. Registry No. 230-07. 0

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