Citation
Amendment to code of fair competition for the cotton textile industry

Material Information

Title:
Amendment to code of fair competition for the cotton textile industry as approved on November 8, 1933
Portion of title:
Cotton textile industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D. C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
5 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Cotton textiles -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 299-25."
General Note:
"Approved Code No. 1--Amendment No. 1."

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:
005024654 ( ALEPH )
701106820 ( OCLC )

Downloads

This item has the following downloads:


Full Text






NATIONAL RECOVERY ADMINISTRATION



AMENDMENTS TO

CODE OF FAIR COMPETITION

FOR THa ,


COTTON TEXTILE INDUSTRY

AS APPROVED ON NOVEMBER 8, 1933
BY
PRESIDENT ROOSEVELT


WE DO OUR PART


1. Executive Order
2. Letter of Transmittal
3. Amendments to Code






UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


or sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents


Approved Code No. 1-Amendment No. 1


Registry No. 299-25
























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.

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.
Melmphis. Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 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.
(iI)







3i
















EXECUTIVE ORDER


MODIFICATIONS OF THE CODE OF FAIR COMPETITION FOR THE COTTON
TEXTILE INDUSTRY

An application having been duly made by the Cotton Textile
Industry Committee under date of August 23, 1933, pursuant to and
in full compliance with the provisions of title I of the National
Industrial Recovery Act, approved June 16, 1933, and pursuant to
sections 9 and 10 of the Code of Fair Competition for the Cotton
Textile Industry, approved July 9, 1933, for my approval of modifi-
cations of said Code of Fair Competition for the Cotton Textile
Industry proposed in said application, and full hearings having been
held thereon and the Administrator, under date of November 3, 1933,
having rendered his report containing an analysis of said modifica-
tions together with his recommendations and findings with respect
thereto, and the Administrator having found as set forth in said
report, that the said modifications comply in all respects with the
pertinent provisions of title I of said act and that the requirements
of clauses 1 and 2 of subsection (a) of section 3 of 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 said modifications
of the Code of Fair Competition for the Cotton Textile Industry
be, and they hereby are approved and made a part of said code.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
November 8, 1933.
Approval recommended:
HUGH S. JOHNSON.
(nlI)


20481---188-194-88













NOVEMBER 3, 1933.
The PRESIDENT, N EMBER 19
The White House.
INTRODUCTION

SIR: This is a report on the Hearing of the modification of the
Code of Fair Competition for the Cotton Textile Industry to include
under the provisions of that Code the Cotton Thread Industry, the
Yarn Merchandizing Industry, and the Cotton and Rayon Finish-
ing Industry as proposed by the following groups and approved
by the Cotton Textile Industry Committee:
1. The Thread Institute.
2. The National Association of Finishers of Textile Fabrics.
3. The Mercerizers Association of America.
This Hearing was held in the auditorium of the Department
of Commerce Building, in Washington, D.C., on October 9th, in
accordance with the provisions of the National Industrial Recovery
Act. Every person who filed an appearance was freely heard in
public'and all statutory and regulatory requirements were complied
with.
Attached herewith is a copy of the modification which was pre-
sented by duly qualified and authorized representatives of the above-
mentioned groups, complying with the statutory requirements, as
representing 78%, 75%, and 75% of their industries, respectively.

EVIDENCE SUBMITTED

It was brought out at the Hearing that almost immediately after
the adoption of the Cotton Textile Code consideration was given by
the Cotton and Rayon Finishers to the formulation of a separate code
applicable to the finishing operations. An Executive Order was
obtained applying, to the Finishing division of the industry, the
basic provisions of the cotton code with a slight modification as to
minimum wage.
Consideration of the problems, however, led to the conclusion that
the same line of reasoning which had resulted in the consolidation
of cotton and rayon weaving indicated that the cotton and rayon
finishing operations should not be segregated from the fundamental
cotton and rayon weaving part of the industry.
Mills weaving cotton and rayon, or cotton alone, and finishing
their own products are so numerous, and their finishing operations
so closely interwoven with the other operations of these plants, that
to attempt to disentangle and cut off those various operations in the
same plan to place them under the authority of separate and diver-
gent codes would be impracticable.
The finishing operations in these mills were already being con-
ducted under the Cotton Textile Code and the logical course seemed
(IV)









to all to be to then extend the operations of the consolidated cotton
and rayon code to the cotton and rayon finishing operations of the
job and corporation finishers as well as the mill finishers.
It was further brought out that the operation of the manufacture
of thread begins with the spinning of yarn, which is already under
the Cotton Textile Code, and there is neither logic nor practicability
in arbitrarily attempting to cut in two what in integrated plants is
a naturally connected operation and, therefore, a part of an operation
under the Cotton Textile Code.
Confusion has been avoided by the fact that the representatives of
the Thread Industry applied for and secured an Executive Order
making applicable the basic provisions of the Cotton Textile Code
to thread operations.
The next branch of the industry to which these amendments relate
is the manufacturing of mercerized cotton yarn. This branch of the
industry is already under the Cotton Textile Code and has complied
with it from the start.
The amendment which affects it relates to a definition of the pro-
ductive machinery characteristic of this branch of the industry, so
as to bring the operation of this machinery under the same 80-hour
limitation which generally prevails in the industry.
It was then shown that these amendments are directed toward
rounding out the scope of the operations of what has now become
a cotton and rayon textile code to cover the interdependent busi-
nesses of the manufacture of yarn and thread, and the weaving and
finishing of cotton and rayon fabrics.
It was also shown at the Hearing that the part of the modification
as originally submitted defining the Finishing subdivision of the
Cotton Textile Industry was inequitable insofar as it was defined
to include plants finishing all rayon materials exclusively which in
actuality belonged to the Silk and Rayon Finishing Industry. Sub-
sequent to the Hearing, this controversial point was cleared up by
representatives of the cotton and rayon, and silk and rayon groups.

RESUME OF PROVISIONS OF THE MODIFICATION

The maximum hours and minimum wages of the three industries
applying for admission under the provisions of the Cotton Textile
Code are the same as those in the Code itself, with the following
exceptions: The Cotton and Rayon Finishers provide for a dollar
a week higher minimum wage in the North and in the South than
the other industries falling under the provisions of the Code.
Machine hours for productive machinery are restricted to two
shifts of forty hours each in all three branches of industry coming
under the provisions of the Code, with the exception of the so-called
Mill Finishers. For this group it is provided that the operating of
finishing machinery, except printing machinery, for a sufficient num-
ber of hours to finish the fabrics woven on their own looms only, or
cotton thread made on their own machinery only shall not be
deemed a violation of the Code until any such finishing operation
exceeds two shifts of forty hours each be determined to be an unfair
competitive practice.








FINDINGS

The Administration finds that:
(a) The Code as amended complies in all respects with the perti-
nent provisions of Title I of the National Industrial Recovery Act,
including, without limitation, subsection (a) of Section 7, and sub-
section (b) of Section 10 thereof.
(b) The applicant groups impose no inequitable restrictions on
admission to membership therein, and are truly representative of
their respective industries.
(c) The provisions of the Code as amended are not designed to
promote monopolies or to eliminate oy oppress small enterprises and
will not operate to discriminate against them, and will tend to
effectuate the policy of Clauses one and two of the National Indus-
trial Recovery Act.
It is recommended, therefore, that the amendments to this Code
be adopted immediately.
Respectfully submitted.
HUGH S. JOHNSON,
Administrator.













AMENDMENTS TO CODE OF FAIR COMPETITION OF THE
COTTON TEXTILE INDUSTRY

(a) There shall be added to the definition of the term "Cotton
Textile Industry in Section I of said Code, the following:
and/or (3) the finishing of any of the foregoing fabrics, whether
woven of cotton or rayon or other synthetic fibre or of a mixture
of any of these fibres with any other fibres, provided that such
finishing operations are carried on by (a) concerns engaged in
the weaving of cotton and/or rayon or other synthetic fibre, (b)
concerns engaged solely in finishing cotton woven fabrics, (c)
concerns primarily equipped for and primarily engaged in fin-
ishing cotton woven fabrics who may also be engaged in finishing
rayon and/or other synthetic fibre fabrics andor (4) the manu-
facture of sewing, crochet, embroidery, and, or darning cotton
thread.
so that the completed sentence shall read as follows:
The term Cotton Textile Industry as used herein is defined
to mean (1) the manufacture of cotton yarns and/or cotton
woven fabrics, whether as a final process or as a part of a larger
or further process, and, or (2) the manufacture of woven rayon
fabrics, 18" or more in width, the warp of which is primarily
rayon or other synthetic fibre yarn, whether finished or unfin-
ished, and.'or (3) the finishing of any of the foregoing fabrics,
whether woven of cotton or rayon or other synthetic fibre or of a
mixture of any of these fibres with any other fibres, provided
that such finishing operations are carried on by (a) concerns
engaged in the weaving of cotton and 'or rayon or other synthetic
fibre, (b) concerns engaged solely in finishing cotton woven
fabrics, (c) concerns primarily equipped for and primarily en-
gaged in finishing cotton woven fabrics who may also be engaged
in finishing rayon and/or other synthetic fibre fabrics and or
(4) the manufacture of sewing, crochet, embroidery, and,'or
darning cotton thread.
(b) There shall be added to the definition of Productive ma-
chinery in Section I of said Code, the following:
(3) printing machines; (4) piece dyeing machines; (5) starch-
ing and/or drying machines, operating on fabrics and not on
raw stock or yarn or cotton thread where the same are used for
the major operation in the production of plain bleached or
unbleached fabrics which are not dyed or printed; (6) all ma-
chinery used for spooling, winding, reeling, or skeining as a
final process to produce cotton thread ready for sale as a finished
article; (7) cone winding machines, reels, through tube cop
(1)









machines and parallel tube winding machines used in the pro-
duction of mercerized yarn only.
so that the completed sentence shall read as follows:
The term productive machinery as used herein is defined
to mean (1) spinning spindles; (2) looms; (3) printing ma-
chines; (4) piece dying machines; (5) starching and,'or drying
machines, operating on fabrics and not on raw stock or yarn or
cotton thread where the same are used for the major operation in
the production of plain bleached or unbleached fabrics which
are not dyed or printed; (6) all machinery used for spooling,
winding, reeling, or skeining as a final process to produce cot-
ton thread ready for sale as a finished article; (7) cone winding
machines, reels, through tube cop machines and parallel tube
winding machines used in the production of mercerized yarn
only.
(c) There shall be added to the definition of the term effective
date in Section I of said Code, the following:
provided that the effective date of the provisions of this code
which relate to the finishing and cotton thread manufacturing
subdivisions of the industry shall be the next Monday after the
approval of such provisions, except as heretofore approved and
effective."
so that the completed sentence shall read as follows:
The term, effective date as used herein is defined to be July
17, 1933, or if this code shall not have been approved by the
President two weeks prior thereto, then the second Monday after
such approval; Provided that the effective date" of the pro-
visions of this code which relate to the finishing and cotton
thread manufacturing subdivisions of the industry shall be the
next Monday after the approval of such provisions, except as
heretofore approved and effective.
(d) There shall be added to the definitions in Section I of said
Code the following definitions:
The term job finishers as used herein is defined to mean
those finishers who do not purchase or own either the grey or the
finished fabrics, but merely perform processing and finishing
services under a contract with the owner of the goods, who
usually is a converter."
The term corporation finishers as used herein is defined to
mean those finishers who own or have a direct or indirect interest
in grey and finished fabrics and who process and finish the goods
for their own account and requirements, and/or for other
accounts.
The term mill finishers as used herein is defined to mean
those mills which are engaged in the weaving of fabrics or pro-
duction of cotton thread and engaged in auxiliary finishing
operations solely on the fabrics or cotton thread so produced by
them.
The term "manufacturers of cotton thread" as used herein
is defined to mean all producers of sewing, crochet, embroidery,









or darning cotton thread, and the term producers of cotton
thread" as used herein is defined to mean all who operate
machinery in the production of the said cotton threads or any
of them, and all who purchase unfinished cotton thread and
cause the further processing of such cotton thread for the pur-
pose of selling the same as a finished article.
(e) There shall be inserted at the end of Section II of said Code
the following:
but the employees in the operation of bleaching, dyeing, and
printing equipment in finishing fabrics shall be paid at the rate
of not less than $13 per week in the southern section of the indus-
try and at the rate of not less than $14 per week in the northern
section of the industry for 40 hours of labor.
so that the completed Section II shall read as follows:
II. On and after the effective date, the minimum wage that
shall be paid by employers in the Cotton Textile Industry to
any of their employees-except learners during a six weeks'
apprenticeship, cleaners and outside employees-shall be at the
rate of $12 per week when employed in the southern section of
the industry and at the rate of $13 per week when employed in
the northern section for 40 hours of labor, but the employees in
the operation of bleaching, dyeing, and printing equipment in
finishing fabrics shall be paid at the rate of not. less than $13
per week in the southern section of the industry and at the rate
of not less than $14 per week in the northern section of the
industry for 40 hours of labor.
(f) There shall be added to Section III of said Code, after the
words 40 hours per week," the following:
Provided employees engaged in the operation of such machines
as dyeing, bleaching, drying, and mercerizing machines, when
used only as a part of continuous chemical processes where the
goods would be jeopardized by interruption, may, in such emer-
gency, work more than 40 hours per week, but not in excess of
48 hours per week.
and the remainder of the Section following the words 40 hours per
week shall be revised and amended so as to read as follows:
employers in the Cotton Textile Industry shall not operate
productive machinery for more than two shifts of 40 hours each
per week; provided, however, that the operating of finishing
machinery, except printing machinery, owned by mill finishers
for a sufficient number of hours to finish the fabrics woven on
their own looms only, or cotton thread made on their own
machinery only shall not be deemed a violation of this section,
until any such finishing operation exceeding two shifts of 40
hours each be determined to be an unfair competitive practice.
so that the amended Section III shall read as follows:
III. On and after the effective date, employers in the Cotton
Textile Industry shall not operate on a schedule of hours of
labor for their employees-except repair shop crews, engineers,








electricians, firemen, office and supervisory staff, shipping,
watching and outside crews, and cleaners-in excess of 40 hours
per week; Provided, employees engaged in the operation of such
machines as dyeing, bleaching, drying, and mercerizing ma-
chines, when used only as a part of continuous chemical proc-
esses where the goods would be jeopardized by interruption,
may, in such emergency, work more than 40 hours per week, but
not in excess of 48 hours per week. Employers in the Cotton
Textile Industry shall not operate productive machinery for
more than two shifts of 40 hours each per week; provided, how-
ever, that the operating of finishing machinery, except printing
machinery, owned by mill finishers for a sufficient number of
hours to finish the fabrics woven on their own looms only or
cotton thread made on their own machinery only shall not be
deemed a violation of this section, until any such finishing
operation exceeding two shifts of 40 hours each be determined
to be an unfair competitive practice.
(g) In the first sentence of Section VI of said Code the word
"and shall be omitted before the words the National Rayon
Weavers Association ", and there shall be inserted after those words
the following:
the National Association of Finishers of Textile Fabrics, the
Thread Institute, and the Mercerizers Association of America,
so that the completed sentence shall read as follows:
To further effectuate the policies of the Act, the Cotton
Textile Industry Committee, the applicant herein, or such succes-
sor committee or committees as may hereafter be constituted by
the action of the Cotton-Textile Institute, the American Cotton
Manufacturers Association, the National Association of Cotton
Manufacturers, the National Rayon Weavers Association, the
National Association of Finishers of Textile Fabrics, the Thread
Institute, and the Mercerizers Association of America, is set up
to cooperate with the Administrator as a Planning and Fair
Practice Agency for the Cotton Textile Industry.
(h) In subdivision (2) of subsection 3 of Section VI of said Code,
there shall be inserted after the word spindles the following:
or printing, dyeing, starching and/or drying machines operat-
ing on fabrics as the same are used for the major operation in
the production and finishing of plain bleached and unbleached
fabrics, or machinery used for spooling, winding, reeling, or
skeining as a final process to produce cotton thread ready for
sale as a finished article or cone winding machines, reels through
tube cop machines and parallel tube winding machines used in
the production of mercerized yarn only.
so that the completed subsection 3 of Section VI shall' read as follows:
3. Recommendations (1) for the requirement by the Adminis-
trator of registration by persons engaged in the Cotton Textile
Industry of their productive machinery, (2) for the requirement
by the Administrator that prior to the installation of additional






5

productive machinery by persons engaged or engaging in the
Cotton Textile Industry, except for the replacement of a similar
number of existing looms or spindles or printing, dyeing. starch-
ing, and/or drying machines operating on fabrics as the same are
used for the major operation in the production and finishing of
plain bleached and unbleached fabrics, or machinery used for
spooling, winding, reeling, or skeining as a final process to pro-
duce cotton thread ready for sale as a finished article or cone
winding machines, reels, through tube cop machines and parallel
tube winding machines used in the production of mercerized yarn
only, or to bring the operation of existing productive machinery
into balance such persons shall secure certificates that such in-
stallation will be consistent with effectuating the policy of the
National Industrial Recovery Act during the period of the emer-
gency, and (3) for the granting or withholding by the Adminis-
trator of such certificates if so required by him.
(i) There shall be added to Section VI of said Code a new para-
graph which shall read as follows:
It shall be the duty of such Agency acting as the Code
Authority for this Industry 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 au-
thority as of common concern with reference to the effectuation
of the policies of the Act (including questions as to whether
the operations of a given concern come within the jurisdiction
of one or the other of the respective Codes), and to take such
action as they may jointly agree to be appropriate subject to
the veto of the Administrator.
(j) There shall be added to Section XIII of said Code, immedi-
ately after the phrase between the wage rates paid various classes
of employees", the phrase "classified according to occupations"
and the words Paragraph 6 shall be changed to Section VI ",
so that the completed Section XIII shall read as follows:
XIII. The amount of differences existing prior to July 17,
1933, between the wage rates paid various classes of employees
classified according to occupations (receiving more than the
established minimum wage) shall not be decreased-in no event,
however, shall any employer pay any employee a wage rate
which will yield a less wage for a workweek of 40 hours than
such employee was receiving for the same class of work for
the longer week of 48 hours or more prevailing prior to July
17, 1933. It shall be a function of the Planning and Fair
Practice Agency provided for in Section VI of the Code to
observe the operation of these provisions and recommend such
further provisions as experience may indicate to be appropriate
to effectuate their purposes.






UNIVERSITY OF FLORIDA '



3 1262 08482 7475










::

































































..t7




Full Text

PAGE 1

Approved Code No. I-Amendment N o. 1 Regi s try No . 299-25 NATIONAL RECOVERY ADMIN I STR A TION AMENDMEN T S TO CODE OF FAIR COMPETI T ION FOE THE COTTON TEXTILE INDUSTRY AS APPROVED ON NOVEMBER 8, 1933 BY PRESIDENT ROOSEVELT WE DO OUR PAR't 1. Executive Order 2. Letter of Transmittal 3. Amendments to Code UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 19SS For sale b y the Superintendent of Documents, Washington, D.C. -------Price 5 cents

PAGE 2

This publication is for sale by the Superintendent of Documents, Government Printing Office , Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. 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 o f Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Ch i cago . Iil.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Comme rce. Dallas. Tex.: Chamber of Commerce Building. D etroit, Mich.: 2213 First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapoli , Ind. : Chamber of Commerce Building. Jacksonville. Fla.: Chamber of Commerce Building. Kansas Cit:r, l\fo. : 1028 Baltimore A Yenue. Los Angeles, Calif.: 1163 South Broadway. LouisYille. Ky. : 408 Federal Building. l\lemphi , Tenn. : 229 Federal Building. MinneapolL, l\Iinn. : 213 Federal Building. New Orleans La.: Room 225-A, Customhouse. New York, N.Y. : 734 Customhouse. Norfolk, Va. : 406 East Plume Street. Philadelphia, Pa.: 933 Commercial Trust Building. Pitt,burgh, 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 F ede ral Building. (II)

PAGE 3

EXECUTIVE ORDER MODIFICATIONS OF THE CODE OF FAIR COMPETITION FOR THE COTTON TEXTILE INDUSTRY An application having been duly made by the Cotton Textils Industry Committee under date of August 23, 1933 , pursuant to and in full compliance with the provis ions of title I of the National Industrial Recovery Act, approYed June 16, 1933 , and pursuant to sections 9 and 10 of the Code of Fair Competition for the Cotton Textile Industry, approved July 9, 1933 , for my approval of modifi cations of said Code of Fair Competition for the Cotton Textile Industry proposed in said application, and full hearings having been held thereon and the Administrator, under date of November 3, 1933, having rendered his report containing an analysis of said modifica tions together with his recommendations and findings with respect thereto, and the Administrator having found as set forth in said report, that the said modifications comply in all respects with the pertinent provisions of title I of said act and that the requirements of clauses 1 and 2 of subsection (a) of section 3 of said act have been met: NOvV, 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 said modifications of the Code of Fair Competition for the Cotton Textile Industry be, and they hereby are approved and made a part of said code. FRANKLIN D. ROOSEVELT. THE \VHrTE HousE, Noveniber 8, 1933. Approval recommended: HUGH s. JOHNSON. (Ill) 20481-188-194-33

PAGE 4

The PRESIDENT, NOVEMBER 3, 1933. The 1'V hite House . INTRODUCTION Sm : This is a report on the Hearing of the modification of the Code of Fair Competition for the Cotton Textile Industry to include under the provisions of that Code the Cotton Thread Industry, the Yarn Merchandizing Industry, and the Cotton and Rayon Finish ing Industry as proposed by the following groups and approved by the Cotton Textile Industry Committee : 1. The Thread Institute. 2. The National Association of Finishers of Textile Fabrics. 3. The Mercerizers Association of America. This Hearing was held in the auditorium of the Department of Commerce Building in Washington, D.C., on October 9th, in accordance with the provisions of the National Industrial Recovery Act. Every person who filed an appearance was freely heard in public"and all statutory and regulatory requirements were complied with. Attached herewith is a copy of the modification which was pre sented by duly qualified and authorized representatives of the above men tioned groups, complying with the statutory requirements, as representing 78%, 75%, and 75% of their industries, respectively. EVIDENCE SUBMITTED It was brought out at the Hearing that almost immediately after the adoption of the Cotto n Textile Code consideration was given by the Cotton and Rayon Finishers to the formulation of a Sparate code applicable to the finishing operations. An Executive Order was obtained applying, to the Finishing division of the industry, the ba_si? provisions of the cotton code with a slight modification as to mnumum wage. Consideration of the problems, however, led to the conclusion that the same line of reasoning wh i ch had re s ulted in the consolidation of cotton and rayon weaving indica ted that the cotton and rayon finishing operations s hould not be segTegated from the fundamental cotton and rayon weaving part of the industry. ~fills weaving cotton and rayon, or cotton alone , and finishing their own products are so nume rous, and their finishing operations so closely interwoven with the other operations of these plants, that to attempt to disentangle and cut off those various operations in the same plan to place them under the authority of separate and divergent codes would be impracticable. The finishinrr operations in these mills were already being con ducted under the Cotton Textile Code and the logical course seemed (IV)

PAGE 5

V to all to be to then extend the operations of the con olidated cotton and rayon code to the cotton and rayon finishing operations of the job and corporation finishers as well as the mill finishers. It was further brought out that the operation of the manufacture of thread begins with the spinning of yarn, which is already under the Cotton Textile Code, and there is nejther logic nor practicability in arbitrarily attempting to cut in two what in integrated plants is a naturally connected operation and, therefore, a part of an operation under the Cotton Textile Code. Confusion has been avoided by the fact that the representatives of the Thread Industry applied for and secured an Executive Order making applicable the basic provisions of the Cotton Textile Code to thread operations. The next branc h of the industry to which these amendments r elate is the manufacturing of m ercerized cotton yarn. This branch of the industry is already under the Cotton Textile Code and has complied with it from the start. The amendment which affects it r elates to a definition of the productive machinery characteristic of this branch of the industry, so as to bring the operation of this machinery under the same 80-hou r limitation which generally prevails in the industry. It was then shown that these amendments are directed toward rounding out the scope of the operations of what has now become a cotton and rayon tex tile code to cover the interdependent busi nesses of the manufacture of yarn and thread, and the weaving and finishing of cotton and rayon fabrics. It was also shown at the H earing that the part of the modification as originally submitted defining the Finishing subdivis ion of the Cotton Textile Industry was inequitable insofar as it was defined to include plunts finishrn~ all rayon materials exclusively which in actuality belonged to the bilk and Rayon Finishing Industry. Subsequent to the Hearing, this controversial point was cleared up by representatives of the cotton and rayon, and silk and rayon groups. RESUl\IE OF PROYI SIONS OF THE l\IODIFICATION The maximum hours and minimum wages of the three indu -tries a pp lying for admission under the provisions of the Cotton Textile Code are the same as those in the Code itself, with the following exceptions : The Cotton and Rayon Finishe rs provide for a dollar a week higher minimum wage in the North and in the South than the other industries falling under the provisions of the Code. Machine hours for productive machinery are re stricted to two shifts of forty hours each in all three branches of industry coming under the provisions of the Code, with the exception of the so-called Mill Finishers. For this group it is provided that the operating of finishing machinery, except printing machinery, for a sufficient number of hours to finish the fabrics woven on their own looms only, or cotton thread made on their own machinery only shall not be deemed a violation of the Code until any such finisi1ing operation exceeds two shifts of forty hours each be determined to be an unfair competitive practice.

PAGE 6

VI FINDINGS The Administration finds that: (a) The Code as amended complies in all respects with the pertinent provisions of Title I of the National Industrial Recovery Act, includin~ without limitation, subsection (a) of Section 7, and sub section ) of Section 10 thereof. (b) T e applicant groups impose no inequitable restrictions on admission to membership therein, and are truly representative of their respective industries. ( c) The provisions of the Code as amended are not designed to promote monopolies or to eliminate o,r oppress small enterprises and will not operate to discriminate against them, and will tend to effectuate the policy of Clauses one and two of the National Industrial Recovery Act. It is recommended, therefore, that the amendments to this Code be adopted immediately. Respectfully submitted. HUGH S. JOHNSON, A d1ninistrator.

PAGE 7

Al\'IENDMENTS TO CODE OF FAIR COMPETITION OF THE COTTON TEXTILE INDUSTRY (a) There shall be added to the definition of the term " Cotton Textile Industry " in Section I of said Code, the following : and/ or (3) the finishing of any of the foregoing fabrics, whether woven of cotton or rayon or other synthetic fibre or of a mixture of any of these fibres with any other fibres, pTovided that such fini shing operations are carried on by ( u) concerns engaged in the weaving of cotton and/or rayon or other synthetic fibre, (b) concerns engaged solely in finishing cotton woven fabrics, ( c) concerns 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/or ( 4) the manufacture of sewing, crochet, embroidery, and/or darning cotton thread. so that the completed sentence shall read as follows: The term "Cotton Textile Industry" as used herein is defined to m ean (1) the manufacture of cotton yarns and/or cotton woven fabric s, whether as a final process or as a part of a larger or further process, and/or (2) the manufacture of woven rayon fabrics, 18" or more in width, the warp of which is primarily rayon or other synthetic fibre yarn, whether finished or unfin i s hed, and/or (3) the fini shing of any of the foregoing fabrics, whether woven of cotton or rayon or other synthetic fibre or of a mixture of any of these fibres with an:y other fibres, provided that such finishing operations are earned on by (a) concerns engaged in the weaving of cotton and/or rayon or other synthetic fibre, (b) concerns engaged olely in finishing cotton woven fabrics , ( c) concerns primarily equipped for and primarily engaged in fini shing cotton woven fabrics who may a lso be engaged in finishing rayon and/or other synthetic fibre fabrics and/or ( 4) the manufacture of sewing, crochet, em . broidery, and/or darning cotton thread. (b) There shall be added to the definition of "Productive ma-chinery " in Section I of said Code, the following: (3) printing machines; (4) piece dyeing machines; (5) starching and/or drying machines, operating on fabrics and not on raw stock or yarn or cotton thread where the same are used for the major operation in the production of plain bleached or unblea ched fabrics which are not dyed or printed; (6) all machinery used for spooling, winding, reeling , or skeining; as a final process to produce cotton thread ready for sal e as a finished article; (7) cone winding machines, reels, through tube cop (1)

PAGE 8

2 machines and parallel tube winding machines used in the production of mercerized yarn only. so that the completed sentence shall read as follows: The term "productive machinery" as used herein is defined to mean (1) spinning spindles; (2) looms; (3) printing machines ; ( 4) piece dying machines ; ( 5) starching and/ or drying machines, operating on fabrics and not on raw stock or yarn or cotton thread where the same are used for the major operation in the production of plain bleached. or unbleached fabrics which are not dyed or printed; ( 6) all machinery used for spooling, winding, reeling, or skeining as a final process to produce cotton thread ready for sale as a finished article; (7) cone winding machines, reels, through tube cop machines and parallel tube winding machines used in the production of mercerized yarn only. ( c) There shall be added to the definition of the term "effective date " in Section I of said Code, the following: provided tha.t the "effective date" of the provisions of this code which relate to the finishing and cotton thread manufacturing subdivisions of the industry shall be the next Monday after the approval of such provisions, except as heretofore approved and effective." so that the completed sentence shall read as follows: The term, " effective date " as used herein is defined to be July 17, 1933, or if this code shall not have been approved by the President two weeks prior thereto, then the second Monday after such approval; Provided that the "effective date" of the provisions of this code which relate to the finishing and cotton thread manufacturing subdivisions of the industry shall be the next J\1onday after the approval of such provisions, except as heretofore approved and effective. ( d) There shall be added to the definitions in Section I of said Code the following definitions: The term "job finishers" as used herein is defined to mean those finishers who do not purchase or own either the grey or the finished fabrics, but merely perform processing and finishing services under a contract with the owner of the goods, who usually is a "converter." The term " corporation finishers " as used herein is defined to mean those finishers who own or have a direct or indirect interest in grey and finished fabrics and who process and finish the goods for their own account and requirements, and/or for other accounts. The term " mill finishers " as used herein is defined to mean those mills which are engaged in the weaving o:f fabrics or production of cotton thread and engaged in auxiliary finishing operations solely on the fabrics or cotton thread so produced by them. The term "manufachU'ers of cotton thread" as used herein is defined to mean all producers of sewing, crochet, embroidery,

PAGE 9

3 or darning cotton thread, and the term "produCrs of cotton thread" as used herein is defined to mean all who operate machinery in the production of the said cotton threads or any of them, and all who purchase unfinished cotton thread and cause the further processing of such cotton thread for the purpose of selling the same as a finished article. ( e) There shall be inserted at the end of Section II of said Cod e the following : but the employees in the operation of bleaching, dyeing, and printing equipment in finishing fabrics shall be paid at the rate of not le s than $13 per week in the southern section of the industry and at the rate of not less than $14 per week in the northern section of the industry for 40 hours of labor. so that the completed Section II shall read as follows : II. On and after the effective date, the minimum wage that shall be paid by employers in the Cotton Textile Industry to any of their employees-except learners during a six weeks' apprenticeship, cleaners and outside employees-shall be at the rate of $12 per wee.k when employed in the southern section of the industry and at the rate of $13 per week when employed in the northern section for 40 hours of labor, but the employees in the operation of bleaching, dyeing, and printing equipment in finishing fabrics shall be paid a.t the rate of not less than $13 per week in the southern section of the industry and at the rate of not less than $14 per week in the northern section of the industry for 40 hours of labor. ( f) There shall be added to Section III of said Code, after the words " 40 hours per week," the following : Provided employees engaged in the operation of such machines as dyeing, blea ching, drying, and mercerizing machines, when used only as a part of continuous chemical proces es where the goods would be jeopardized by interruption, may, in such emer gency, work more than 40 hours per week, but not in excess of 48 hours per week. and ~he remainder of the Section following the words " 40 hours per week " shall be revised and amended so as to read as follows : employers in the Cotton Textile Industry shall not operat~ productive machinery for more than two shifts of 40 hours ea.ch per week; provided, however, that the operating of finishing machinery, except printing machinery, owned by mill fini s hers for a sufficient number of hours to finish the fabrics woven on their own loom s only, or cotton thread made on their own machinery only shall not be deemed a violation of this section, until any such finishing opera.tion exceeding two shifts of 40 hours each be determined to be an unfair competitive practice. so that the amended Section III shall read as follows: III. On and after the effective date, employers in the Cotton Textile Industry shall not operate on a schedule of hours of labor for their employees-except repair shop crews, engineers,

PAGE 10

4 electricians, firemen, office and supervisory staff, shipping, watching and outside crews, and cleaners-in excess of 40 hours per week; Provided, employees engaged in the operation of such machines as dyeing, bleaching, drying, and mercerizing ma chines, when used only as a part of continuous chemical proc esses where the goods would be jeopardized by interruption, may, in such emergency, work more than 40 hours per week, but not in excess of 48 hours per week. Employers in the Cotton Textile Industry shall not operate productive machinery for more than two shifts of 40 hours each per week; provided, how ever, that the operating of finishing machinery, except printing machinery, owned by mill finishers for a sufficient number of hours to finish the fabrics woven on their own looms only or cotton thread made on their own machinery only shall not be deemed a violation of this section, until any such finishina operation exceeding two shifts of 40 hours each be determined to be an unfair competitive practice. (g) In the first sentence of Section VI of said Code the word "and" shall be omitted before the words "the National Rayon :Weavers Association", and there shall be inserted after those words the fallowing : the National Association of Finishers of Textile Fabrics, the Thread Institute, and the Mercerizers Association of America, so that the completed sentence shall read as follows: To further effectuate the policies of the Act, the Cotton Textile Industry Committee, the applicant herein, or such succes sor committee or committees as may hereafter be constituted by the action of the Cotton-Textile Institute, the Americari Cotton Manufacturers Association, the National Association of Cotton Manufacturers, the National Rayon Weavers Association, the N a .tional Association of Finishers of Textile Fabrics, the Thread Institute, and the Mercerizers Association of America, is set up to cooperate with the Administrator as a Planning and Fair Practice Agency for the Cotton Textile Industry. (h) In subdivision (2) of subsection 3 of Section VI of said Code, there shall be inserted after the word " spindl1es " the following: or printing, dyeing, starching and/or drying machines operating on fabrics as the same are used for the major operation in the production and finishing of plain bleached and unbleached fabrics, or machinery used for spooling, winding, reeling, or skeining as a final process to produce cotton thread ready for sale as a finished article or cone winding machines, reels through tube cop machines and parallel tube winding machines used in the production of mercerized yarn only. so that the completed subsection 3 of Section VI shall' read as follows: 3. Recommendations ( 1) for the requirement by the Administrator of registration by persons engaged in the Cotton Textile Industry of their productive machinery, (2) for the requirement by the Administrator that prior to the installation of additional

PAGE 11

5 productive machinery by persons engaged or engao-ing m the Cotton Textile Industry, except for the replacement of a iniilar number of existing loom or spindles or printing, dyeing. tarching, and/or drying machines operating on fabrics as the ame are used for the major operation in the production and finishing of plain bleached and unbleached fabrics, or machinery used for spooling, winding: reeling, or skeining as a final process to produce cotton thread ready :for sale as a finished article or cone winding machines, reels, through tube cop machines and parallel tube winding machines used in the production of mercerized yarn only, or to bring the operation of existing productive machinery into balance such persons shall secure certificates that such installation will be consistent with effectuating the policy of the National Industrial Recovery Act during the period of the emer gency, and (3) for the gTanting or withholding by the Administrator of such certificates if so required by him. ( i) There shall be added to Section VI of said Code a new paragraph which shall read as follows: It shall be the duty of such Agency acting as the Code Authority for this Industry 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 of the policies of the Act (including questions as to "hether the operations of a given concern come within the jurisdiction of one or the other of the respective Codes), and to take such action as they may jointly agree to be appropriate subject to the veto of the Administrator. (j) There shall be added to Section XIII of aid Code, immedi ately after the phrase " between the wage rates paid various classe s of employees", the phrase "classified according to occupations" and the words "Paragraph 6" shall be changed to " Section YI", so that the completed Section ..lrIII shall read as :follows: XIII. The amount of differences existing prior to July 17, 1~33, between the wage rates paid various classes of employee s cla ssified according to occupations ( receiving more than the established minimum wage) shall not be decreased-in no eYent, however, shall any employer pay any employee a wage rate which will y ield a less wage for a workweek o:f 40 hours than such employee was receiving for the same class of work for the longer week o:f 48 hours or more prevailing prior to July 17, 1933. It shall be a function of the Planning and Fair Practice Agency provided :for in Section VI o:f the Code to observe the operation o:f these provisions and recommend such further provisions as experience may indicate to be appropriate to e:ff ectuate their purposes. 0

PAGE 12

, I UNIVERSITY OF FLORIDA II I II IIIIII Ill Ill lllll lllll II IIII II II IIIII Ill 1111111111111111111 3 1262 08482 7475