Citation
Code of fair competition for the laundry trade as approved on February 16, 1934 by President Roosevelt

Material Information

Title:
Code of fair competition for the laundry trade as approved on February 16, 1934 by President Roosevelt
Portion of title:
Laundry trade
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
p. 487-505 : ; 24 cm.

Subjects

Subjects / Keywords:
Laundry industry -- Law and legislation -- 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. 1735-2-10."
General Note:
"Approved Code No. 281."

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:
004930967 ( ALEPH )
645210560 ( OCLC )

Full Text







r,::iATIONAL RECOVEJr ADMINISTRATION



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CODE OF FAIR COP.ITION -

FOR THERE '
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LAUNDRY TRADE

..AS APPROVED ON FEBRUARY
^ ~ AS APPROVED ON FEBRUARY' 15,4 .,


PRESIDENT ROOSEVELT


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WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


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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 Donestic 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.: S01 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
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Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, 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.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 500 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.






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Approved Code No. 281
CODE OF FAIR COMPETITION
FOR THE

LAUNDRY TRADE

As Approved on February 16, 1934
BY
PRESIDENT ROOSEVELT


EXECUTIVE ORDER

CODE OF FAIR COMPETITION FOR THE LAUNDRY TRADE
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 Laundry Trade, and hearings having
been held thereon and the Administrator having rendered his report
containing an analysis of the said Code of Fair Competition to-
gether 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 requirements 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 is hereby approved for a period of 90
days, within which period the adequacy of the minimum wages
established in this Code shall be given further study by the Adnlin-
istrator, who shall submit his report and recommendation to me for
my further order.
Provided, however, that this Code, other than as shall be necessary
to facilitate the accomplishment of the following requirements, shall
not become effective as to any given trade area in the United States
unless and until the following requirements shall have been fulfilled
for each such trade area:
(1) The Code Authority shall have designated the boundaries of
such trade area as provided in Article VI, Section 6 (c) of the
Code and the Administrator shall have approved the same;
408780-376-78-34 (487)






488


(2) The Code Authority shall have established a Code Control
Board for such trade area as provided in Article VI, Section 6 (d)
of the Code;
(3) The Code Control Board for such trade area shall have caused
to be determined the uniform service names for laundry services,
definitions of said services, a uniform method of billing said services,
and the fair and reasonable minimum wholesale and retail prices
for the several services for such trade area; and shall have secured
the approval of the Administrator thereto, as provided in Article
VI, Section 6 (i) and (j) of the Code.
(4) The Code Control Board shall have obtained signatures to a
petition in such trade area from not less than seventy per cent
(70%), determined according to the method of voting prescribed for
the election of the Board of Directors of the Laundry-owners Na-
tional Association, of the members of the trade within such trade
area, in which petition there is a showing that there exists within
such trade area an emergency productive of widespread unemploy-
ment and disorganization of the Laundry Trade.
(5) The Administrator shall have approved such petition or a
petition containing a less percentage of signatures than hereinabove
provided in the discretion of the Administrator. The Code shall
become fully effective in such trade area upon such approval.
Prior to the full effectiveness of the Code in any given trade area
any member of the trade within such trade area who has signed
such petition, and who certifies that he is complying with the require-
ments of said Code, including approved prices for said trade area,
shall be entitled while so employing to make full use of appropriate
National Recovery Administration insignia.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON,
A dmin ist rator.
THE WHITE HOUSE,
February 16, 1934.




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LETTER OF TRANSMITTAL


The PRESIDENT,
The White House.
Sm: I have the honor to submit and recommend for your approval
the Code of Fair Competition for the Laundry Trade. This Code
was proposed by the Laundryowners National Association, which
represents approximately 82% of power laundries of the trade.
The Public Hearing was conducted in Washington on November
20 and 21, 1933, and every person who filed a request for appearance
in accordance with stautory and regulatory requirements was fully
heard.
CONDITIONS IN THE INDUSTRY

Due to excessive plant facilities, lack of adequate reserve, and to
an unusual competitive position, this trade has suffered severely
during the past three years. In many sections vicious price wars
have been initiated in an attempt to bolster falling volume. The
competitive position of the Laundry Trade is extremely unfortunate.
An increase in price meets immediate sales resistance and the erst-
while consumer frequently becomes a competitor. The services of
laundresses can be procured by the housewife at extremely low
nominal rates, especially in the South. Laundry work in the home
has been made a far less unpleasant chore in recent years due to the
introduction of the washing machine and it is pertinent to observe
in this connection that more electric washing machines were sold
during the first 9 months of the current year than during all of 1929.
As a result of these conditions the Laundry Trade during the first
6 months of 1933 was contending against severe handicaps. Volume
had fallen to 56% of the level prevailing during 1929 and in not one
of the 48 states did the Laundry Trade as a whole show an operating
profit during the first half of this year.
Since July, instead of the improvement characterizing other indus-
tries, the Laundry Trade has suffered a further decline. This may
be explained in part by its position as a service industry and by the
fact that the trend in such industries lags distinctly behind the trend
in manufacturing industries. No immediate improvement in the
Laundry Trade can, therefore, be expected as a result of general
business recovery. Such improvement may be expected to be delayed
for many months.
Two problems received paramount consideration in the drafting
of this Code. The first was the necessity for stabilizing the price
structure in such form as to prevent the recurrence of vicious price
cutting. The second was the development of a formula for the grad-
ual re-adjustment of the extremely low wage scale prevailing in this
trade to levels commensurate with those prevailing in other branches
of industry without imposing intolerable burdens upon a large sec-
tion of the trade throughout the country.
(489)






490


LABOR PROVISIONS

Maximum hours are established according to classes of employees,
consisting of 40 hours for plant employees and 48 hours for firemen,
engineers and/or maintenance employees. These hours represent a
substantial reduction in those prevailing prior to the inauguration
of the Recovery program and, in addition, impose requirements more
rigid than those specified under the substitution to the President's
Reemployment Agreement, under which the Trade is at present
operating.
Minimum wages are established for plant employees ranging from
300 in cities having a population greater than 600,000 in the north-
east and far west to 14 in Alabama, Arkansas, Florida, Georgia,
Louisiana, Mississippi, the trade area of Albuquerque, New. Mexico,
North Carolina, South Carolina, Tennessee, the portion of Texas east
of the counties of Chambers, Harris, Waller, Grimes, Madison, Leon,
Freestone, Navarra, Ellis, Kaufman, Hunt and Fennin, the trade
areas of El Paso and San Antonio, Texas, and the portion of Vir-
ginia not included in Group D. These last rates are applicable to
establishments employing less than 9%0 of the laundry workers of the
country.
It is not contended that the 14L rate represents a satisfactory
level. Its application has, however, resulted in an increase in
operating payroll of 46% in plants affected. Inasmuch as practi-
cally all the laundries in this section were operating at losses even
prior to these pay-roll increases, it was not felt that any higher
rate was at present economically feasible. It is, however, believed
that the effects of a general up-turn in business combined with the
application of the provisions regulating trade practices in this Code
may so improve the position of the southern laundries as to enable
them to pay rates more nearly commensurate with those which have
been approved for other industries.

MINIMUM PRICE PROVISION

In my letter to you transmitting the Code of Fair Competition
for the Cleaning and Dyeing Trade, the considerations making
essential the adopting of price control for that trade were analyzed.
Similar conditions exist in the Laundry Trade and it was felt ad-
visable to recommend the adoption of a similar method of price
stabilization. This Code provides safeguards for the consumer and
for the trade in that no rates may be established prior to public
hearings to be held in the localities affected and all such rates are
subject to the approval of the Administrator. It is not felt that
this provision will work any undue hardship on the consumer owing
to the fact that the competitive position of the Trade makes un-
warranted price increases impossible and it appears that the adop-
tion of this provision affords the only method of insuring fair
competition.
TRADE PRACTICES

Certain practices now current in this trade have the effect of caus-
ing an unfair competitive advantage in favor of small groups. The




". -"'. *....
491

S trade has sought to eradicate such practices by making them viola-
tions of this Code.
ADMINISTRATION
S The provisions for administration of this Code are capable of pro-
viding the National Recovery Administration and the Laundry
Trade with sufficient data to make recommendations for the limita-
tion of certain provisions of the Code as herewith presented and/or
the addition of further provisions to this Code which would be
beneficial to the trade as a whole.
GENERAL
: Recognizing the great necessity for flexibility in the operation
of service codes, it has been provided in the Executive Order that
This Code shall not become effective as to any given trade area until
the following requirements shall have been fulfilled for each such
trade area:
(1) The Code Authority, subject to the approval of the Adminis-
trator, shall have designated the boundaries of such trade area;
(2) The Code Authority shall have established a Code Control
Board for such trade area;
(3) The Code Control Board, subject to the approval of the Ad-
ministrator, shall have caused to be determined fair and reasonable
minimum wholesale and retail prices for such trade area;
(4) The Code Control Board shall have obtained signatures to a
petition in such trade area from not less than seventy percent of
the members of the trade within such trade area;
(5) The Administrator, in his discretion, shall have approved
such petitions, or a petition, containing a less percentage of signa-
tures than hereinabove provided.
Prior to the full effectiveness of the Code, any member of the
trade who has signed such petition and who certifies that he is
complying with the requirements of the Code shall be entitled to
full use of appropriate National Recovery Administration insignia.
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 Sec-
tion 10 thereof.
The Laundryowners National Association is truly representative
of the Laundry Trade, and the by-laws of this association provide
ho inequitable restrictions to membership.
The Code is not designed to promote monopolies or to eliminate
or oppress small enterprises and will 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 Laundry Trade.
SRespectfully,
HUGH S. JOHNSON,
Administrator.
FEBRUARY 15, 1934.


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CODE OF FAIR COMPETITION FOR THE LAUNDRY:
TRADE

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 Laundry Trade and shall be the standard
of fair competition for this trade and shall be binding upon every
member thereof.
ARTICLE II-DEFINITIONS

1. The term laundry trade as used herein includes (a) the wash-
ing, and/or ironing, and'or processing incidental thereto for com-
pensation of any article of clothing, napery, blanket, bed clothing, or
fabric of any kind whatsoever; (b) the collection, distribution, sale,
andl or resale for compensation at retail or wholesale of laundry serv-
ice, and (c) any subdivision which may from time to time be included
herein. For the purpose of assisting the Administrator in the admin-
istration of the Act, the Laundry Industry is classified as a trade.
2. The term laundry establishment" as used herein includes any
place or vehicle in which anyone engages in any phase of the laundry
trade.
3. The term retail outlet as used herein includes any laundry
establishment where laundry service is sold, or offered for sale, di-
rectly to the consumer; the term "retailer means any member of
the laundry trade by or for whom a retail outlet is operated.
4. The term member of the laundry trade or member of the
trade as used herein includes anyone engaged in any phase of the
laundry trade either as an employer or on his own behalf, except
washerwomen engaged solely on their own behalf.
5. The term employee as used herein includes anyone engaged in
the laundry trade in any capacity, receiving compensation for his
services, irrespective of thle method of payment of such compensation.
(a) The term clerk as used herein includes any employee work-
ing in the office of a laundry establishment who is engaged in work
of a clerical, accounting, sales, or service character.
(b) The term route salesmen" as used herein includes anyone
employed by a member of the laundry trade on a commission or
salary and commission basis to solicit the sale of laundry service of
such member, to call for articles to be laundered, to deliver such
articles, and to collect payment for the laundering thereof.
(c) The term deliverymen" as used herein includes anyone
whose sole function is to deliver and/or to collect articles to be
laundered and,'or to collect payment for the laundering thereof.
(d) The term "executive as used herein includes any employee
responsible for the management of a laundry establishment or of a
recognized subdivision thereof.
(492)




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-(e) The. term "'watchman as used herein includes any employee
engaged primarily in safeguarding the premises and property of a
laundry establishment.
6. The term "employer as -used herein includes anyone by whom
such employee. is compensated or employed.
S7. Population, for the purposes of this Code, shall be determined
by.reference to the Fifteenth Census of the United States (U.S. De-
p4artment of Commerce, Bureau of Census, 1930).
8. The terms President ", "Act ", and "Administrator as used
herein mean, respectively, the President of the United States, the
National Industrial Recovery Act, and the Administrator for Indus-
trial Recov'ery.
9. The. term National Association as used herein means the
Laundryowners. National Association of the United States and
Canada, Inc.
10. The term "Authorized Association as used herein means and
includes any Regional, State, or Local Association designated as an
Authorized Association by the National Association.
.11. The term "trade area" as used herein means any area desig-
nated as a trade area by the Code Authority and approved by the
Administrator. Trade areas may be filed without regard for city,
county, sectional, or State lines.1
12. The term "Code Authority as used herein means the national
administrative agency of the laundry trade as established in Article
VI of the Code.


ARTICLE III-HOURs

1. Except as hereinafter expressly stipulated otherwise.
(a) No engineer, fireman, or maintenance employee shall be per-
mitted to work in excess of forty-eight (48) hours in any one week.
(b) No clerk employed in any retail outlet shall be permitted to
work in excess of forty-eight (48) hours in any one week.
(c) No deliveryman in cities of a population of 25,000 or more
and their immediate trading areas shall be permitted to work in
- excess of forty-eight (48) hours in any one week. No deliveryman
in cities or towns of less than a population of 25,000 and their imme-
diate trading areas be permitted to work more than six (6) hours
per week in excess of forty-eight (48) hours.
(d) No other employee shall be permitted to work in excess of
forty (40) hours in any one week.
2. The maximum hours fixed in the foregoing section shall not
apply to:
(a) Executives receiving regularly a salary of $30 or more per
week, included employers.
(b) Employees on emergency maintenance, or emergency repair
work involving breakdowns, or protection of life or of property, but
in any such special case at least 11/ times the normal rate shall be
paid for hours worked in excess of the maximum hours herein
provided.
(c) Watchmen.
d) Route-salesmen.
SSee paragraph 3 of order approving this Code.
40878 --376-78-34-----2


493






494


3. (a) Due to fluctuations in the demand in this trade, the maxi-
mum hours fixed in paragraphs (a) and (d) of section 1 of this
Article shall not apply during six (6) weeks in any thirteen (13.)
week period. During any week in which such maximum hours do
not apply no employee covered in said paragraph (a) shall be per-
mitted to work in excess of fifty-four (54) hours in any one week,
and no employee covered in said paragraph (d) shall be permitted to
work in excess of forty-six (46) hours in any one week, provided,
however, that no employee shall work more than thirty (30) hours
in excess of those specified in paragraphs (a) and (d) of Section 1
of this Article during any thirteen (13) week period.
(b) In any trade area where, due to seasonal peak demands, a
sufficient number of employees qualified for the work is not available,
the Code Control Board having jurisdiction over such trade area
may submit to the Code Authority for approval, subject to review by
the Administrator, exceptions to the maximum hours specified in
Section 1 of this Article.
4. Upon the formation of a Code Control Board in any trade area:
(a) No member of the trade shall be open for the production of
laundry service between the hours of 10 P.M. and 6 A.M. or on
Sunday.
5. No member of the trade shall receive work from or deliver
work to customers between the hours of 8 P.M. and 5 A.M. or on
Sunday.
6. The Code Control Board having jurisdiction over any trade
area may, subject to the approval of the Administrator, make excep-
tions to the hours of operation fixed in Sections 4 and 5 of this Arti-
cle to allow for unavoidable peak periods, emergencies, or conditions
peculiar to such trade area, provided, however, that any member of
the trade who is refused an exception by the Code Control Board
having jurisdiction may file a request for review by the Administra-
tor of the refusal of the Code Control Board within ten days after
such refusal and shall be given a stay of section 4 of this Article for
30 (lays or until his request is reviewed and approved or disapproved
by the Administrator.
7. No employee shall be permitted to work more than six (6) days
in any seven (7) day period,
8. Notwithstanding the exemptions from maximum hours, pro-
vided by section 2 (a) of this Article, such exemptions shall not, in
any case, apply to more than one worker to every ten workers or
fraction thereof. For the purpose of this Section, the word
" worker shall be deemed to include employees, employers, owners,
managers, and persons not receiving monetary wages, when such
persons are actually engaged in any work other than of managerial
or supervisory character. The word worker" shall not include,
however, those covered by paragraphs (b), (c), and (d) of Section
2 of this Article.
ARTICLE IV-WAGES
1. No office employees shall be paid at less than the rate of:
Zone 1-In cities of more than 500,000 population and their im-
mediate trading areas:
Northern Area $14.00 per week.
Southern Area $13.00 per week.




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Zone 2-In cities of 100,000 to 500,000 population and their im-
mediate trading areas:
Northern Area $13.50 per week.
Southern Area $12.50 per week.
Zone 3-In cities of less than 100,000 population not covered above,
and their immediate trading areas:
Northern Area $13.00 per week.
Southern Area $12.00 per week.
For the purpose of this Section the "Southern Area" shall in.
elude the following states: Virginia, West Virginia. North Caro-
lina, Kentucky, Maryland, Oklahoma, Texas, Florida, South Caro-
lina, Georgia, Louisiana, Mississippi, Alabama. Tennessee, and Ar-
kansas; the term Northern Area shall include all of the territory
of the continental United States except. that portion included under
the term Southern Area."
2. (a) No other employee shall be paid at less than the rate per
hour specified in Schedule A:


SCHEDULE A


In cities of more than 600,000 population and their immediate
trading areas:
Group A-$0.30.
Group B-$0.25.
Group C-$0.22%/.
Group D-$0.20.
Group E-$0.14.
In cities of 100,000 to 600,000 population and their immediate
trading areas:
Group A-$0.271,/.
Group B-$0.25.
Group C-$0.22i1,2.
Group D-$0.20.
Group E-$0.14.
In cities of less than 100,000 population not covered above, and
their immediate trading areas:
Group A-$0.25.
Group B-$0.221/.
Group C-$0.20.
Group D-$0.18.
Group E-$0.14.
These minimum rates of pay shall apply only to common labor or
other totally unskilled labor.
For the purpose of this Schedule, Group A shall include the fol-
lowing states and portions of states: California, Connecticut, Maine,
Massachusetts, Montana, Nevada, New Hampshire, the portion of
New Jersey north of the counties of Mercer, Burlington, and Ocean,
New York, the portion of Oregon west of the counties of Wasco,
Jefferson, Deschutes, and Klamath, Rhode Island, Vermont, the
portion of Washington west of the counties of Okanogan, Chelan,
Kittitas, Yakima, and Klickitat., and Wyoming.
Group B shall include the following states and portions of states:
Arizona, Colorado, District of Columbia, Idaho, the portion of


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496


Illinois north of the counties of Madison, Bond, Fayette, Effingham,
Jasper and Crawford, the portion of Indiana north of the counties
of Sullivan, Greene, Lawrence, Jackson, Scott, Jefferson and Swit-
zerland, Iowa, Michigan, Minnesota, Nebraska, the portion of New
Jersey not included in Group A North Dakota, Ohio, the portion
of Oregon not included in Group A, Pennsylvania, South Dakota,
Utah, the portion of Washington not included in Group A, and
Wisconsin.
Group C shall include the following states and portions of states:
Delaware, the portion of Illinois not included in Group B, the por-
tion of Indiana not included in Group B, Kansas, Maryland, and
the portion of Missouri north of the counties of Jasper, Lawrence,
Greene, Webster, Wright., Texas, Shannon, Reynolds, Wayne,
Stoddard, and Scott.
Group D shall include the following states and portions of states:
Kentucky, the portion of Missouri not included in Group C, the
portion of New Mexico not included in Group E, Oklahoma, the por-
tion of Texas not included in Group E, the portion of Virginia north
of the counties of Craig, Botetourt, Bedford, Amherst, Nelson, Albe-
marle. Louisa, Hanover, Caroline, Essex and Westmoreland, and
West Virginia.
Group E shall include the following states and portions of states:
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, .the
trade area of Albuquerque, New Mexico, North Carolina, South Car-
olina, Tennessee, the portion of Texas east of the counties of Cham-
bers, Harris, Waller, Grimes, Madison, Leon, Freestone, Navarra,
Ellis, Kaufman, Hunt and Fannin, the trade areas of El Paso and
San Antonio, Texas, and the portion of Virginia not included in
Group D.
Where a trade area falls partly in one group and partly in another,
the Code Authority shall have the power, subject to review by the
Administrator, to authorize deviations from the boundary line
between the two groups as above defined.
2. (b) The following minimum rates shall be established for the
following states and portions of states until July 1, 1934, or such
time thereafter as the Administrator, after due notice and hearing,
shall approve new minimum rates:
In Michigan, the portion of Indiana included in Group B, and the
portion of Pennsylvania south and west of the counties of Mercer,
Venango. Clarion, Jefferson, Clearfield, Centre, Huntingdon, Perry,
Cumberland, and York-ten percent (10%) less than the rates
specified in Schedule A.
2. (c) Should the rates specified in this Section of Article IV cause
an intolerable hardship on members of the trade in any trade area
the Code Control Board having jurisdiction, subject to review by
the Administrator, may allow a reduction not to exceed 10% from
such rates; such reductions to be effective for a period not to exceed
three months; and in any case to expire on or before July 1, 1934.
3. Sections 1 and 2 of this Article establish a minimum rate of pay
in any pay period, regardless of whether an employee is compen-
sated on a time rate, piecework, commission, or other basis.
4. There shall be an equitable adjustment of all wages above mini-
mum, and to that end, by July 1, 1934, the Code Authority shall












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submit for the approval of the Administrator a proposal for ad-
justment in wages above the minimum. Upon approval by the Admin-
istrator, after such hearing as he may prescribe, such proposal shall
become binding as a part of this Code, provided, however, that in no
event shall hourly rates of pay be reduced.
5. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
6. No deduction from wages shall be made or permitted for the
hbuiing and/or boarding of any employee within a laundry estab-
lishment, or for the laundering of worker's uniforms soiled while
on duty.2
ARTICLE V-GENERAL LABOR PROVISIONS

1. No person under seventeen (17) years of age shall be employed
in the laundry trade. In any State an employer shall be deemed
to have complied with this provision if he shall have on file a cer-
tificate or permit duly issued by the authority in such State em-
powered to issue employment or age certificates or permits, showing
that the employee is of the required age.
2',In compliance with Section 7 (a) of the Act, it is provided:
(a) 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 labor, or their agents, in the designation of such representatives
or in self-organization or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
(b) No employees and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
3. No provision in this Code shall supersede any State or Federal
law which imposes on employers more stringent requirements as to
age of employees, wages, hours of work, or as to safety, health, sani-
tary or general working conditions, or insurance or fire protection,
than are imposed by this code.
4. Where a State law or orders promulgated thereunder provide a
higher minimum wage than is provided in this code, no person em-
ployed within that State shall be paid a wage below that required by
such State law or orders. Where such State law or orders affect only
females and/or male minors, the minimum rates specified for such
employees shall apply under this code to all employees, whether
male or female, so that such minimum rates shall apply equally to
employees of both sexes.
5. No employer shall reclassify employees or duties of occupations
performed or engage in any other subterfuge for the purpose of
defeating the purposes or provisions of the Act or of this code.
6. Every employer shall make reasonable provisions for the safety
and health of his employees at the place and during the hours of
SBee paragraph 2 of order approving this Code.


497






498


their employment. Standards for safety and health shall be sub-
mitted by the Code Authority to the Administrator within six. (6)
months after the effective date of this Code.
7. Every member of the trade shall display a placard adjacent to
the time clock, or employees' entrance, and at three (3) other promi-
nent locations in his place of business, stating the minimum wages
and the maximum hours of labor which govern the operations of said
member.

ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
AUTHORITY

ORGANIZATION

1. A Code Authority is hereby constituted to Administer this
Code. .,
2. (a) The Code Authority shall consist of from sixteen (16)' to
twenty-one (21) members of the trade, or such other number, as
may be approved from time to time by the Administrator, t9 be
selected as hereinafter provided. The Administrator, in his discre-
tion, may appoint not more than three (3) additional members
without vote to represent such groups or governmental agencies as
he may designate and to serve without expense to the laundry trade.
(b) The members of the Code Authority representing the trade
shall consist of sixteen (16) individuals who shall be members of
the Board of Directors of the National Association representing the
geographical districts of said association in the United States; and,
at the discretion of the Administrator, of not more than five (5)
members of the trade who are not members of the National Asso-
ciation to be appointed by the Administrator or selected in a manner
prescribed by him.
(c) In order that a Code Authority shall at a]l times be truly
representative of the trade and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
Authority.
3. Each trade association directly or indirectly participating in
the selection or activities of the Code Authority or Code Control
Boards shall (a) impose no inequitable restrictions on member-
ship, and (b) submit to the Administrator true copies of its articles
of association, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act. "
4. Any member of the trade shall be entitled to make use of the
insignia approved by the Administrator for the Laundry trade, and
to participate in and share the benefits of the activities of the Code
Authority and the Code Control Board having jurisdiction over his
trade area by assenting to and complying with the requirements of
this Code, and by either becoming a member of the National Asso-






499

cihtion and the 'Authorized Association serving his trade area or
paying his reasonable share of the expenses of the creation and
|. administration of this Code. Such reasonable share shall be deter-
mined by the Code Authority, subject to the right of review by the
Administrator, on the basis of volume of business and such other
factors as may be deemed equitable.
- 5. Nothing contained in this Code shall constitute the members of
the Code Authority or of any Code Control Board partners for any
purpose. Nor shall any member of the Code Authority or of any
Code Control Board be liable in any manner to anyone for any act of
any other member, officer, agent, or employee of the Code Authority
or Code Control Board. Nor shall any member of the Code Author-
ity or of any Code Control Board exercising reasonable diligence
in the conduct of his duties hereunder, be liable to anyone for any
act or omission to act under this Code, except for his own willful
misfeasance or nonfeasance.
6. The Code Authority shall have the following powers and duties
to the extent permitted by the Act:
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the trade with the provisions of the
Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of this Code, in accord-
ance with the powers herein granted, and to submit the same to the
Adininistrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the
Act.
(c) To define trade areas and designate the boundaries thereof,
subject to the approval of the Administrator.3
(d) To establish a Code Control Board for any trade area, either
through the channels of such laundry trade associations as the Na-
tional Association may designate as Authorized Associations, or
through such individuals or groups as the Code Authority shall
designate, and to provide that each such board shall be truly repre-
sentative of the trade, and such other group or groups as the Code
Authority shall direct, within the trade area under its jurisdiction;
to designate the trade area over which each Code Control Board
shall have jurisdiction, subject to the approval of the Administrator;
and, to delegate to such boards such of the powers and duties reposed
in the Code Authority as may be necessary for the effective admin-
istration and enforcement of this code in their respective trade
areas.4
(e) To choose from among its membership an executive committee
of not more than five (5) persons and to delegate to such executive
committee, during intervals between meetings of the Code Authority,
any of the powers and duties reposed in it by this Code, provided,
however, that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code.
SSee paragraph 3 (1) of order approving this Code.
4 Bee paragraph 3 (2) of order approving this Code.






500


The Chairman of the Code Authority shall be a member of the
Executive Committee; one member of such Committee shall be chosen
from anong those members of the Code Authority appointed-b: the
Administrator or selected in the manner prescribed by him as pro-
vided in Section 2 (b) of Article VI; one shall be chosen from those
elected by the States of Washington, Oregon, Montana, Wyoming,
Colorado, Utah, Idaho, California, Nevada, Arizona., Minnesota,
Nebraska, South Dakota, North Dakota, Wisconsin, Missouri, Kansas
and Iowa; one shall be chosen from among those elected by the States
of Texas, Oklahoma, New Mexico, Arkansas, Mississippi, Tennessee,
Alabama, Louisiana, Kentucky, North Carolina, South Carolina,
Georgia, Florida, District of Columbia, Maryland, Virginia and
West Virginia; and one shall be chosen from among those elected
by the States of Michigan, Indiana, Ohio, Massachusetts, Rhode
Island, Connecticut, Vermont, Maine, New Hampshire, New York,
New Jersey, Pennsylvania, Delaware and Illinois.
The representatives of the Administrator as appointed in Section
2 (a) of this Article, shall be notified of all meetings of the Execu-
tive Committee and may attend such meetings without vote.
(f) To revoke any delegation of any of its powers and duties
whenever it shall determine that they are not being fully or properly
exercised.
(g) To coordinate and harmonize the activities of the various
Code Control Boards.
(h) To prescribe an equitable method of voting at meetings of
members of the trade participating in this Code.
(i) To delegate to any Code Control Board the power to estab-
lish uniform service names for laundry services, to define said serv-
ices, to establish a uniform method of billing such services, and to
prescribe their use within its trade area or areas.5
(j) To cause the Code Control Board, subject to the approval of
the Administrator, to establish and prescribe, after due notice to
members of the trade and to representatives of consumers and others
affected by this provision and a public hearing in each trade area at
which representatives of consumers and other groups affected thereby
shall be given an opportunity to be heard, fair and reasonable min-
imum wholesale and retail prices by trade areas for the several
services comprised within the definition of the laundry trade; such
minimum wholesale and retail prices to be sufficient to provide for
carrying out the purposes of the Act, to be consistent with mainte-
nance of the minimum standards of quality prescribed by the Code
Authority, to enable the trade to maintain the payment of at least
minimum wages herein established and other wages properly based
thereon, the furnishing of stable employment necessary to maintain
the trade, and such other considerations reasonably pertinent thereto.
In the event that any member of the trade complying with the pro-
visions of this code can show to the State Director of the National
Emergency Council nearest the locality within which such member
is situated, that his normal and usual price schedule, during the three
consecutive years prior to approval thereof, have been below the min-
imum prices established hereunder, and such fact shall have been
certified to the Code Control Board for the trade area in which he is
iSee painagraph .. (3) of order approving tVs Code.






501


located, such member shall not be required, by such established min-
imum prices to increase his said price schedule in excess of 20%;
nor thereafter to increase his former price schedule by more than
20% at any one time in order to comply with any revision of such
established minimum prices.
In the event that 30% of the votes cast by members of the trade
in any trade area, voting according to the method of voting pre-
scribed for the election of the Board of Directors of the National
Association, shall object to the prices so established for such trade
area, such prices shall be automatically suspended pending a further
hearing and restudy, and findings shall have been made by the Code
Control Board for such trade area sustaining such prices as fair and
reasonable minimum wholesale and retail prices, or establishing
revised prices, and the Administrator shall have approved such
prices first established or such revised prices.
Any minimum prices thus established may from time to time be
increased or decreased by the Code Authority, with the approval of
the Administrator, according to changing conditions.
Immediately after any such prices, increases, and/or reductions
have been approved by the Administrator, the Code Authority shall
take such steps as are reasonably calculated to notify all members of
the trade thereof. Such prices, increases and/or reductions shall go
into effect upon such date or dates as the Code Authority shall fix,
subject to the approval of the Administrator.5
(k) To adopt and prescribe minimum standards of quality for
each of the several types of service performed by the laundry trade,
and, to this end to cooperate with a committee to be selected by the
following methods:
(1) One (1) active member of the National Association shall be
appointed by the Board of Directors of that Association.
(2) One (1) technician from the staff of the National' Association
shall be appointed by the Board of Directors of that Association.
(3) One (1) person may be appointed by the American 'Home
Economics Association.
(4) One (1) technician (who may be selected from without the
trade, preferably from the United States Bureau of Standards) shall
be agreed upon by the three (3) persons appointed under the preced-
ing three (3) sub-paragraphs or, in the event they fail to agree, by
the Administrator.
(1) To make studies and investigations of conditions and practices
current in the trade; to gather statistics from governmental and
other agencies; to require and secure from all members of the trade
in such form as the Code Authority may prescribe, such reports and
information as is reasonably pertinent to effectuate the purposes of
the Act and of this Code, for use of the Code Authority and the Ad-
ministrator in the administration and enforcement of the Code, and
for the information of the President; to compile, tabulate, publish,
and distribute reports based on such studies, investigations, statis-
tics, and information; to assist members of the trade participating in
this Code by developing improved methods for operations incidental
to and in connection with the laundry trade and a uniform system of
See paragraph 3 (3) of order approving tbis Code.






502

accounting and reporting. All individual' reports shall be kept con-
fidential and only general summaries thereof may be published.
(m) To promote, under the auspices of some impartial organiza-
tion, the formation of a Board of Arbitration in the jurisdiction of
each Code Control Board to settle unadjusted customer claims
against members of the trade which, by mutual consent of the inter-
ested parties, are presented to such Board of Arbitration.
(n) To require that all individual and group cost data, as may be
necessary under this Code, be ascertained, and costs allocated to the
various laundry services and articles in a manner approved by the
Code Authority. All such data shall be obtained by accountants
recognized by the Code Authority as qualified.
(o) In any trade area the members of the trade may, by agree-
ment of two-thirds of the total number of votes cast according to
the method of voting prescribed for the election of the Board of
Directors of the National Association, subject to the approval of
the Administrator, establish uniform hours for opening and closing
all retail outlets within such trade area which, when approved by
the Administrator or his deputy, shall be binding upon all members
of the trade within such trade area, provided, however, in no case
shall any retail outlet receive work from or deliver work to customers
before 5 A.M. or after 8 P.M. or on Sunday.
(p) To establish and prescribe, subject to the approval of the
Administrator, a uniform contract for the sale of laundry service
for resale to be used by all members of the trade.
(q) To designate any trade association or any other agency or
agencies to assist it in performing its duties herein prescribed.
(r) To cooperate with the Administrator in the establishment of
an advisory council for all textile maintenance service trades, to con-
sider and advise with the Administrator on matters of concern to two
or more such service trades operating under separate codes of fair
competition, and to appoint representatives of the laundry trade to
such advisory council.
(s) To initiate, consider, and make recommendations for the
modification or amendment of this Code."
7. In addition to the information required to be submitted to the
Code Authority as set forth in this Article, there shall be furnished
to government agencies such statistical information as the Adminis-
trator may deem necessary for the purposes recited in Section 3 (a)
of the Act.
8. If the Administrator shall determine that any action of a code
authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the Administrator may require that such action
be suspended to afford an opportunity for investigation of the merits
of such action and further consideration by such code authority or
agency pending final action, which shall not be effected unless the
Administrator approves or unless he shall fail to disapprove after
30 days' notice to him of intention to proceed with such action in its
original or modified form.'
See paragraphs 3 (4) and 3 (5) of order approving this Code.
7 See paragraph 4 of order approving this Code.






503


AnTTL VII--TRADE PRACTICES

The following practices constitute unfair methods of competition
for members of the laundry trade and are prohibited:
S-41. Fa'te Marking or Labeling.-The false marking or labeling of
asayauridry service which has a tendency to mislead or deceive cus-
tomers or prospective customers, whether as to the grade, quality;
finish, or otherwise.
'2. Misrepresentation or False or Misleading Advertising.-The use
(or participation therein) of, the publication or the broadcasting of
any untrue, deceptive, or misleading representation, statement, or
illustration, or the making of unfair competitive claims in connection
with and for the purpose of furthering the sale of laundry service.
3. Interference with Contractual Relations.-Maliciously inducing
or attempting to induce the breach of an existing contract between a
competitor and his customer or source of supply or interfering or
obstructing the performance of any such contractual duties or service.
4. Rebates.-The secret payment or secret allowance to any cus-
tomer, or to any employee of a customer of rebates, refunds, commis-
sions, credits, free laundry service, or unearned discounts, whether in
the form of money or otherwise, including the extension to certain
customers of special services or privileges, false invoicing, and rebates
under the guise of allowance for lost, misplaced, or damaged articles.
5. Unfair Merchandising Devices.-(a) The furnishing of free
work to anyone except an employee or a bonn fide charity.
Sb) The use of lotteries.
c) The use of coupon books, discount coupons or premiums.
d) The giving, permitting to be given or directly offering to give
free service, commissions, or any other consideration to any em-
ployee of any apartment house, club, or institution as an inducement
to secure or retain the patronage of customers residing therein.
The provisions of this section shall not, however, prohibit (1) the
use of coupon books, discount coupons, premiums, or certificates by
a member of the trade who was using such coupon books, discount
coupons, premiums, or certificates on the effective date of this Code,
under a subsisting and binding contract with a person not a member
of the trade, but only until the expiration of such contract, or (2)
the use of coupon books or of discount coupons provided the Code
Control Board in any trade area approves such use for all members
of the trade in such area.
6. Defamation.-The defamation of a competitor by falsely im-
puting to him dishonorable conduct, inability to perform contracts,
questionable credit standing, or by other false representations, or by
the false disparagement of the grade or quality of his service.
7. Espionage of Competitors.-Securing confidential information
concerning the business of a competitor by false or misleading state-
ment or representation, by false impersonation of one in authority,
by bribery, or by any other unfair method.
3. Imitation of Competitor.-The use or imitation of the trade
mark, trade name, slogan, or characteristic design or color scheme
of a competitor with the intention or having the tendency or
. capacity of deceiving the customers of such competitors.






504

9. Furnishing any Service, Material or Eq upment.-Rendering
any service other than laundry service or furnishing any materials
or equipment to anyone unless adequately compensated therefore.
10. Enticing Away Employees.-Maliciously enticing away an
employee of a competitor with the purpose and intent of unduly
hampering, injuring or embarrassing a competitor in his business.
Nothing herein shall prevent any employee from offering his services
to a competitor or prevent any member of the trade from employing
an employee of another member of the trade where the initiative in
such change of employment comes solely from the employee.
11. Selling For Resale.-(a) The sale of laundry services know-
ingly to anyone for resale who fails to comply with the provisions
of this Code and the rules, regulations and interpretations promul-
gated hereunder. (b) Selling laundry service at wholesale to any-
one for resale unless the charges for such wholesale laundry service
exceeds $20 per week, for each four week period.
12. Selling Below Minimum Prices.-The sale of any laundry
service in, or for delivery in, or for resale in, any trade area at less
than the minimum retail or wholesale price (as the case may be) for
such service as and when established for such trade area under the
provisions of Article VI, Section 6 (j) of this Code.
13. Selling Below Standard Quality.-The offering of any laundry
service to the public below the minimum standards of quality for
such service as and when prescribed by the Code Authority pursuant
to the provisions of Article VI, Section 6 (k) of this Code.
14. Extension of C'redit.-Requiring the extension of credit to any
customer by a route salesman unless the employer has authorized
such credit and assumed full responsibility for the payment thereof.
15. Posting of Insurance Infolnation.-Failure to display in a
conspicuous place a printed or written placard stating whether, to
what extent, and against what hazards articles accepted for launder-
ing are protected by insurance for the benefit of the customer.
16. Employee Deposits.-Failure of a member of the trade, who
receives from any employee a deposit in the nature of a security or
bond, to segregate from the assets of such member such deposit to be
held in trust from which no withdrawals are to be permitted except
for repayment to the employee or for payment to the employer for
obligations of the employee to the employer. Any such funds not
now so segregated shall be segregated at no later date than six (6)
months after the effective date of this Code.

ARTICLE VIII-MISCELLANEOUS OBLIGATIONS OF MEMBERS OF TIHE
TRADE

1. When minimum prices shall have been established, as prescribed
in Article VI covering any or all services, every member of the trade
shall have available at all offices and vehicles from which delivery
to customers is made, a price list clearly defining such services and
such of the minimum prices as shall have been so established at
which such services are sold.
2. All offices or vehicles distributing laundry service not owned
or carrying the name of the member of the trade where the major
part of such laundry service is produced shall prominently display






505


either the term "Agency" or "Distributor" (as the case may be),
provided, however, that this section shall not become effective until
sixty (60) days after the effective date of this Code.
3. Every member of the trade shall display his name at each
office and on each vehicle owned and/or operated by him.

ARTICLE IX-MODIFICATIONS AND SUPPLEMENTS

1. The President may from time to time cancel or modify any
order, approval, license, rule or regulation, issued under the Act.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administrator
and such notice and hearing as he shall specify, and to become
effective on approval of the President.
3. Any authorized association may, with the approval of the Code
Authority, submit to the Administrator supplements to this Code
affecting any trade area or areas served by them, providing said
supplements carry out the purposes of Title I of the Act.

ARTICLE X-IMONOPOLIES

No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrim-
inate against small enterprises.

ARTICLE XI-EFFECTIVE DATE

This Code shall become effective on its approval by the President.
Approved Code No. 281.
Registry No. 1735-2-10.





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Full Text

PAGE 1

Approved Code No. 281 Registry No. 1735-2-10 NATIONAL RECOVER~ ADMINISTRATION ' CODE OF FAIR COMPETITION FOR THE AS APPROVED ON FEBRUARY 16, l~34 BY PRESIDENT ROOSEVELT WE DO OUR PAJtr 0--------1 .. , • u.s. OE~-----UNITED STATES GOVERNMENT PRINTIN G OFFICE WASHINGTON : 1934 For sale by the Supe intendent or Documents, Washington, D . C. --------Pric e 5 cents \I

PAGE 2

( This publication is for sale by the Superintende11t 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, l\Iich.: 801 Fir.st National B ank Building. Houston, Tex.: Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, 1\10. : 1028 Baltimore A nnue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, 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. : 422 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, ,vash.: 809 Feder.al Offic e Building.

PAGE 3

Approved Code No. 281 CODE OF FAIR COMPETITION FOR THE LAUNDRY TRADE As Approved on February 16, 1934 BY PRESIDENT ROOSEVELT EXECUTIVE ORDER CooE OF FAIR Col\IPETITION FOR THE LA NDRY TRADE An application having been duly made pursuant to and in full compliance with the provision s of Title I of the .1 T ational Industrial Recovery Act, approYed June 16, 1933, for my approval of a Code of Fair Competition for the Laundry Trade, 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 hi recommendations and findings with re spect thereto, and the Administrator having found that the said Gode of Fair Competition complies in all respect 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 the said Act have been met: NO"T THEREFORE, I , Franklin D. Roo evelt President of the United States, pur uant to the authority Yested in me by Title I of the National Industrial R ecovery Act, approYed June 16, 1938, a .nd otherwise, do adopt and approve the report, recommendations and findings of the Administrator and do order that the s aid Code of Fair Competition be and is hereby approved for a period of 90 days, within which period the adequacy of the minimum "ages established in this Code shall be criYen further study by the Administrator, who shall submit his report and recommendation to me for my further order. Provided, howeYer, that this Code other than a hall be nece ary to facilitate the accomplishment of the following requirement , hall not become effective a to any given trade area in the United States unless and until the following requirement hall lrnYe been fulfilled for each such trade area: (1) The Code Authority . hall haye de ignated the boundarie of such trade area a provided in Article VI, ection 6 ( c) of the Code and the Administrator c::hall have approyed the same; 40 78-3,G--7 -34 (--! 7)

PAGE 4

48 (2) The Code Authority hall haY e tabli heel a Code Control Board for such trade area a proYided in Article VI, Section G ( d) of the Code; (3) The Code Control Bo:ird for uch trade urea shall ha Ye caused to be determined the uniform service names for laundry services, definitions of said erYice , a uniform method of billing said services, and the fair and reasonable minimum wholesale and retail priees for the several services for such trade area; and shall have secured the approYal of the Administrator thereto, a provided in Article VI, Section 6 (i) and (j) of the Code. ( 4) The Code Control Board shall have obtained signature to a petition in such trade area from not less than seYenty per cent (70 %), determined according to the method of voting prescribed for the election of the Board of Directors of the Laundry-o,, ner;:; National As ociation, of the members of the trade within such trade area, in which petition there is a showing that there exists within such trade area an emergency producti've of widespread unemployment and disorganization of the Laundry Trade. (5) The Administrator hall haYe approYed such petition or a petition containing a less percentage of signatures than hereinabove provided in the discretion of the Administrator. The Code shall become fully effectiYe in such trade area upon such approval. Prior to the full effectiveness of the Code in any given trade area any meinber of the trade within such trade area who has signed such petition, and who certifies that he is complying with the require ments of said. Code, including approved prices for said trade area, shall be entitled while so employing to make full use of appropriate National Reem ery Administration insignia. Approval recommended: HUGHS. JOHNSON, Acbniri.isfrator. THE ,vHrTE HousE, February 16, 1934. FRANKLIN D. ROOSEVELT.

PAGE 5

LETTER OF TRANS:MITTAL The PRESIDENT The White Hous e . Srn: I have the honor to submit and re commend for your approval the Code of Fair Competition for the Laundry Trade. This Code was proposed by the Laundryowners National Association, which represents approximately 82% of power laundries of the trade. The Public Hearing was conducted in Washington on ovember 20 and 21, 1933, and every person who filed a request for appearance in accordance with stautory and regulatory requirements was fully heard. CONDITIONS IN THE I -ffCSTRY Due to exce ss ive plant facilitie s, lack of adequate r ese rve and to an unusual competitiYe position, this trade has s uffered severely during the past three years. In many sec tions vicious price wars have been initiated in an attempt to bol ster falling ,olume. The competitive position of the Laundry Trade i s extremely unfortunate. An increase in price meet s immediate ales resistance and the erst while consumer frequently becomes a cc;nnpetitor. The services of laundresses can be procured by the housewife at extremely low nominal rates, especially in the South. Laundry work in the home has been made a far le ss unpleasant chore in recent years due to the introduction of the washing ma ch ine and it i s pertinent to ob er-ve in this connection that more e lectric washing machines were sold during the first 9 months or the current year than during all of 1929. As a result of these conditions the Laundry Trade during the first 6 months of 1933 was contending against severe handicaps. Volume had fallen to 56% of the le-vel prevailing during 1929 and in not one of the 48 states did the Laundry Trade as a whole show an operating profit during the first half of this year. Since July, instead of the impro,ement characterizing other indus tries the Laundry Trade has suffered a further decline. This may be explained in part by its position as a sen ice industry and b y the fact that the trend in such industries lags distinctly behind the trend in manufacturing industries. No immediate improvement in the Laundry Trade can, therefore, be expected as a re sult of general business recovery. Such improvement may be expected to be delayed for many months. Two problems received paramount con ideration in the drafting of this Code. The first was the necessity for stabilizing the price structure in such form as to prevent the recurrenc e of vicious price cuttino. The second "\\as the development of a formula for the gradual re-adjustment of the extremely low wage scale prevailing in this trade to levels commensurate with those prevailing in other branches of indu try without imposing intolerable burden upon a large ection of the trade throughout the country. (489)

PAGE 6

490 LABOR PROVISIONS l\iaximum hours are established according to classes of employees, consisting of 40 hours for plant cmploye-es and 48 hours for firemen, engineer and/or maintenance employees. These hours represent a substantial reduction in those preYailing prior to the inauguration of the Recovery program and, in addition, impose r eq uirements more rigid than those specified under the sub titution to the President's Reemployment Agreement, under which the Trad0 i s at present operating. l\1inimum -n, ages are established for plant employee. ranging from 30 in cities having a population greatr than 600,000 in the northeast and far west to 14 in Alabama, Arkansas, Florida, Georgia, Louisiana, I\'Iissi sip pi, the trade area of Albuquerque, New Mexico, North Carolina, South Carolina Tennessee, the portion of Texas east of the counties of Chambers Harris \Valler, Grimes, l\iadi on, Leon, Freestone, Navarra, Ellis, I(aufman, Hunt and Fennin, the trade areas of El Paso and San Antonio, Texas, and the portion of Virginia not included in Group D. These last rates ure applicable to establishments employing l ess than 97c of the laundry iiorkers of the country. It is not contended that the 14 rate represents a satisfactory le,el. Its npplicati.on has, howe,er, resulted in an increase in operating payroll of 46% in plant affected. Inasmuch as practically all the laundries in this section were operating at losses even prior to these pay-roll increases, it was not felt that any higher rate was at present economically feasible. It is, however, believed that the effects of a general up-turn in business combined with the application of the provisions regulating trade practic0s in this Code may so improve the position of the southern laundries as to enable them to pay rates more nearly commen urate with those which have been approved for other industries. l\1IXI1\'1Ul\I PRitE PROVISION In my letter to you transmitting the Code of Fair Competition for the Cleaning and Dyeing Trade, the considerations making essential the adopting of price control for that trade were analyzed. Similar conditions exist in the Laundry Trade and it was felt ad visable to reconimend the adoption of a sin1ilar method of price stabilization. This Code provides safeguards for the consumer and :for the trade in that no rates may be established prior to public hearings to be held in the localiti es affected and all such rates are subject to the approval of the Administrator. It is not felt that this provision will work any undue hard.ship on the consumer owing to the fact that the competitive position of the Trade makes unwarranted price increases impos sib le and it appears that the adop tion of this provision affords the only method of insuring fair competition. TR.ADE PRACTICES Certain practices now current in this trade have the effect of causing an unfair competitive advantage in favor of small groups. The

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491 trade has ought to eradicate s uch prac tices by making them viola tions of this Code. ADl\IINISTRATION The provis ion s for administration of this Code are c apable of providing the National Recovery Administration and the Laundry Trade "ith sufficient data to make recommendations for the limitation of certain provis ion s of the Code a s herewith presente d and/or the addition of furthe r provisions to this Cod e whi c h would be Leneficial to the trade a s a whole. GENERAL Recognizing the great nec essity for flexibility in the op eration of service codes , it has been provided in the Executive Orde r that this Code shall not bec o m e effective a s to any given trade area until the following requirem ents shall have been fulfilled for ea c h s u c h trade area: (1) The Code Authority. s ubj ect to the approval of the Administrator, shall have de signate d the boundarie s of s uch trade area; (2) The Code Authority shall have esta bli s h e d a Cod e Control Board for such trade area; (3) The Code Control Board, s ubject to the approv al of the Administrator, shall have caused to b e dete r min e d fair and r e a s onable minimum wholesale and r etail pric es for s u c h trade area ; ( 4) The Cod e Contro l B oard shall hav e obta i n e d signatures to a petition in s u c h trade a r e a from not l ess than seventy p e rcent of the memb e r s of the trade within s u c h trade area ; (5) The Administrator, in his discretion, shall have approve d s uch petitions , or a petition, containing a l ess p e rcentage of s ignatures than h e r e inabov e provided. Prior to the full effec tiven ess of the Cod e any n1.e mb e r of the trade who ha s s igned s u c h p etition and who c e rtifie s that he is complying with the requirement s of the Code shall b e entitle d to full u e of appropriate Nati onal Recovery Administration ins ignia. FINDINGS I find that: The Code complies in all respects with the pertinent provis ion s of Title I of the National Industrial Recovery Act, including, without limitation, s ub e ction (a) of S e ction 7 , and subsection (b) of Section 10 thereof. The L a undrymvn e r s National Asso ciation is truly r epresentative of the Laundry Trade, and the by-laws of this a ss o ciation provide no ine quitable re strictions to member s hip. The Code i s not de s igned to promote monopolie s or to eliminate or oppress s mall enterpris es and will not operate to discriminate agains t them, and will t e n d to e ffectuat e the poli c y of Title I of the National Industrial Recovery Act. Accordingly, I hereby re c ommend the approval of the Code of Fair Competition :for the Laundry Trade. Re s pectful] y, FEBRU.-.\RY 15, 1934. HUG H S. JOHNSO N Aclmdn i st1 a t or.

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CODE OF FAIR CO:\fPETITION FOR THE LAUNDRY TRADE ARTICLE I-PURPO E To effectuate the policies of Title I of the National Industrial Reco-very Act, the following pro-visions are established as a Code of Fair Competition for the Laundry Trade and shall be the standard of fair competition for this trade and shall be binding upon every member thereof. ARTICLE II-DEFIXITIO:NS 1. The term " laundry trade ' as used herein includes (a) the wa hing and/or ironing, and/or processing incidental thereto for com pensation of any article of clothing, napery, blanket. bed clothing, or fabric of any kind whatsoever; (b) the collection, distribution, sale, and/or resale for compensation at retail or wholesale of laundry serv ice, and (c) any subdi,ision which may from time to time be included herein. For the purpose of assisting the Administrator in the admini tration of the Act, the Laundry Industry is classified as a trade. 2. The term " laundry establishment" as used herein includes any place or "'."ehicle in which anyone engages in any phase of the laundry trade. 3. The term " retail outlet " as used herein includes any laundry establi hment -nhere laundry service is sold, or offered for sale, di rectly to the con mner; the term "retailer" means any member of the laundry trade by or for -nhom a retail outlet is operated. 4. The term " member of the laundry trade " or " member of th-2 trade" as used herein includes anyone engaged in any phase of the laundry trade either as an employer or on his own behalf, except washerwomen engaged solely on their own behalf. 5. The term" employee" as used herein includes anyone engaged in the laundry trade in any capacity, receiving compensation for his ser-vice , irrespective of the method of payment of such compensation. (a) The term "clerk" as used herein includes any employee working in the office of a laundry establishment who is engaged in work of a clerical, accounting, sales, or service character. (b) The term "route salesmen" as used herein includes anyone employed by a member of the laundry trade on a commission or salary and commission basis to solicit the sale of laundry service of such member, to call for articles to be laundered, to deliYer such articles, and to collect payment for the laundering thereof. (c) The term "deliverymen" as used herein includes anyone whose sole function is to deliYer and/or to collect articles to be laundered and/or to collect payment for the laundering thereof. ( d) ~he term "executi-ve" as used herein includes any employee responsible for the management of a laundry establishment or of a recognized subdiYision thereof. (492)

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493 ( e) The term "watchman " as used herein includes any employee engaged pri111arily in safeguarding the premic:es and property of a laundry establishme1it. 6. The term" employer 'as used herein includes anyone by whom uch employee _ i compensated or employed. 7. Popul~tion, for the purposes of this Code, shall be determined by reference to the Fifteenth Census of the United States (U.S. Department 9f Commer~e, Bureau of Census, 1930). 8. T~rn terms "President", "Act", and "Administrator" as u . eel herein mean, respectively, the President of the United State' , the National Industrial R ecovery Act, and the Administrator for Indus trial Re"OYery. 9. The term "N"ational Association" as used herein means the Laundryowners National Association of the United States and Canada, Inc. 10. The term "Authorized A sociation" as u sed herein means and includes any Regional, State, or Local As ociation designated as an Authorized Association by the National Association. 11. The term "trade area" as u sed herein means any area designated as a trade area by the Code Authority and approved by the Administrator. Trade areas may be filed without regard for city, county, sectional, or State lines.1 12. The term "Code Authority" as u sed herein means the national administrative agency of the laundry trade as establi heel in Article VI of the Code. ARTICLE III-I-IouRs 1. Except as hereinafter expressly stipulated otherwise. (a) No engineer, fireman, or maintenance employee shall be per: mitte
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494 3. (a) Due to fluctuations in the demand in this trade, the maximum hours fixed in paragraph (a,) and (d) of section 1 of this Article shall not apply during six (6) weeks in any thirteen (13) week period. During any week in which such maximum hours do not apply no employee covered in said paragraph (a) shall be permitted to work in exce s of fifty-four (54) hours in any one week, and no employee covered in said paragraph ( d) shall be permitted to -work in excess of forty-six ( 46) hours in any one week, provided, howeYer, that no employee shall work more than thirty (30) hours in excess of those specified in paragraphs (a) and (d) of Section 1 of this Article during any thirteen ( 13) wek period. (b) In any trade area where, due to seasona l peak demands, a sufficient number of employees qualified for the work is not available, the Code Control Board having jurisdiction over such trade area may submit to the Code Authority for approval, subject to review by the Administrator, exception to the maximum hours specified in Section 1 of this Article. 4. Upon the formation of a Code Control Board in any trade area: (a) No 1nember of the trade shall be open for the production of laundry service between the hour of 10 P.1\1. and 6 A.M. or on Sunday. 5. No member of the trade shall receive work from or deliYer work to customers between the hours of 8 P.M. and 5 A.M. or on Sunday. 6. The Code Control Board having jurisdiction over any trade area may, subject to the approval of the Adrn.inistrator, make excep tions to the hours of operation fixed in Section 4 and 5 of this Article to a ll ow for unavoidable peak periods, emergencies, or conditions peculiar to such trade area, provided, ho,veYer, that any member of the trade who is refused an exception by the Code Control Board having jurisdiction may file a request for review by the Administrator of the refusal of the Code Control Boa.rd within ten clays after such refusal and shall b e given a stay of sect ion 4 of this Article for 30 days or until his request is reviewed and approved or disapproved by the Administrator. 7. No employe shall be permitte d to work more than six ( 6) days in any seven (7) day period_. 8. Notwithstanding the exemptions from maximum hours, pro vided by section 2 (a) of this Article, such exemptions shall not, in any case, apply to n10re than one worker to every ten ,Yorkers or fraction thereof. For the purpose of this Section, the word "worker ' . hall be deemed to include employees, employers, owners, managers, and p e r so n s not receiving monetary wages , ,Then such persons are actually engaged in any work other than of managerial or supervisory character. The word "worker" shall not include, however, tho e covered by paragraphs (b), ( c), and (cl) of Sectiou 2 of this Article. ARTICLE IV-\V AGES 1. No office employee hall b e paid at le s than the rate of: Zone 1-In cities of more than 500,000 population an l their im mediat~ trading areas : Northern Area $14.00 per ,Yeek. Southern Area $13.00 per 11eek.

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495 Zone 2-In cities of 100 000 to 500,000 population and their im-mediate trading areas : Northern Area $13.50 per week. Southern Area $12.50 per week. Zone 3-In cities of less than 100 ) 000 population not coYered aboYe, and their immediate trading area. : Northern Area. $13.00 per "eek. Southern Area $12.00 per week. For the purpo e of this Section the "Southern Area" shall in .. elude the following states: Virginia ,,Test Virginia. North Caro lina, Kentucky, :Maryland, Oklahoma Texas, Florida, South Carolina, Georgia, Louisiana, Mi. sis ippi, Alabama, Tenne~ see, and Arkansas; the term "Northern Area " shall include all of the territory of the continental United State. except that portion included under the tenn" Southern Area.'' 2. (a) No other employee shall be paid at le ~ s than the rate per hour specified in Schedule A: , CHED-CLE A In cities of n1ore than 600,000 population and their immediate trading areas: Group A-$0.30. Group B-$0.25. Group C-$0.22. Group D-$0 .20. Group E-$0.14. In cities of 100,000 to 600 000 population and their immediate trading areas: Group A-$0.27. Group B-$0.25. Group C-$0.22. Group D-$0.20. Group E-$0.14. In cities of le ss than 100 , 000 population not covered aboYe, and their immediate trading areas: Group A-$0.25. Group B-$0.22. Group C-$0.20. Group D-$0.18. Group E-$0.14. These minimum rates of pay hall apply only to c ommon labor or other totally unskilled labor. For the purpose of this Schedule, Group A shall include the fol lowing states and portion of states: California, Connecticut, Maine, Mas s achusetts, l\1ontana, Nevada, New Hampshire, the portion of .Jew Jersey north of the counties of Mercer, Burlington, and Ocean, .i.. ew York, the portion of Oregon west of the countie s of "\Vasco, Jefferson, Deschutes, and Klamath, Rhode Island, Vermont, the portion of \Vashington west of the countie of Okanogan, Chelan, Kittitas, Yakima and IGic kitat, and "\Vyoming. Group B shall include the following state and portions of .-tates : Arizona Colorado, . Di -trict of Columbia, Idaho, the portion of

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496 Illinoi north of the countie of J\Iadi on Bond Fayette, Effin ham, J a per and C'nn,ford, the portion of Indiana north of tl e counties of ulliYan, Green e , Lawrence, Jack on, cott. Jeffer~ on an l "itzerlanc.1, Iowa :\Iichigan , .r bnnc-:::o t a ebra ka, the portion of ,.. ew J er. ey not inclnclecl in Group \. orth Dakota Ohio, the portion of Oregon not included in Group A Penn ylYania outh Dakota Utah, the portion of \Ya hington not inclu :le l in Group , and ,Yi con in. Group C hall includ the folloiVing tates and portion of tate : Delaware the portion of Illinoi not inclndecl in <...-=rronp B, the portion of Indiana not included in Group B ICan a , 1\Iaryland: and the portion of fi ouri north of the countie ~ of J a per, Lawrence, Greene ,, ebster, \Yright Te:s:as Shannon, Reynold.\Vayne, Stoddard and cott. Group D hall include the followino-tate and portion of tates: ICentucky, the portion of :Mi souri not included in Group C: the portion of New l\1e:s:ico not included in Group E, Oklahoma, the portion of Texa not included in Group E, the portion of , irginia north of the countie s of Craig Botetourt, Bedford, Amherst, Nelson, lbe marle. Loui a, Hanover. Caroline, E ex and \Vestm reland. ancl We t Virginia. Group E shall include the follo-n'"ing tates and portion of tate : Alabama, Arkansa , Florida, Georgia Loni. ianu l\Ii is ippi, the trade area of Albuquerque New :Mexico North Carolina, 'outli Carolina, Tennec: ee, the portion of Texas ea t of the countie ~ of Chamber Harri \Valler Grimes, l\1adi on Leon, Freestone, Navarra, Ellis, Kaufman, Hunt and Fannin, the trade areas of El Pa o and San Antonio, Tex.a . , and the portion of Virginia not included in Group D. \i\There a trade area fall partly in one group and partly in another, the Code Authority shall h::tY the po-n'"er, ubject to review by the Administrator, to authorize deviation s from the bounuary line between the two group a above defined. 2. (b) The following m~nimum rate shall be e tablished for the following state and portion of tates until July 1 1934, or uch time thereafter a the Aclmini trator after due notic and hearing, shall approve new rn.inimum rate~ : In Michigan, the portion of Indiana include l in Group B. an l the portion of Penn yl-vania south and west of the countie of l\Iercer Venango, Clarion, Jeffers on, Clearfield Centre. Huntingdon, Perry, Cumberland and York-ten percent ( 10 c ) le than the rates pecified in Schedule A. 2. ( c) Should the rates pecified in this Section of Articl 1, ca u e an intolerable hard hip on member of the trade in any trade area the Code Control Boar l ha vino juri diction, ubject to review by the Admini trator, may allow a reduction not to e . xceed 10 % from uch rates; s uch reduction to be effective for a period not to exceed three months; and in any case to expire on or before July 1, 1934. 3. Section 1 and 2 of thi rticle e tabli h a minimum rate of pay in any pay period, regardless of whether an employee i s compenated on a time rat!.', piecework. commi . ion, or other baj . 4. There . hall be an equitable aclju tment of all wage aboY mini mum, and to that end by July 1, 1934 the Code Authority hull

PAGE 13

497 submit for the approval of the Administrator a proposal for adjustment in -wages above the minimum. Upon aproval by the Administrator after such hearing as h may prescribe, uch proposal hall become binding as a part of thi Code, provi le 1 , however, that in no event shall hourly rates of pay be reduced. 5. Female employees performing ub tantially the same work as male employees sha ll receiye the same rate of pay as male employees . 6. o deduction from wages shall be made or permitted for the housing an 1/o r boarding of any employee within a laundry e tab Ii lunent: or for the laundering of worker' uniforms soiled while on cluty.2 \nTICLE V-GENERAL LABOn PRon IONS 1. No person under seventeen (17) years of age shall be employed in the laundry trade. In any tate an emp loy er hall be deemed to haYe complied with this provision if he hall have on file a cer tificate or permit duly i ssued by the authority in such State em powered to issue employment or age certificate or permiL, hawing that the employee is of the required age. 2 . In complian e with Section 7 (a) of the Act, it is provided: (a) Employee hall have the right to organize and bargain col l ecfrvely through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of emp loyers of labor, or their agents, in the designation of such representatives or in self-organ ization or in other concerted activities for the purpose of collective bargai11ing or other mutual aid or protection. (b) No employees and no one seeking employment shall be required a a condition of employment to join any company union or to refrain from joining, organizing, or assistina a labor organization of hi choo ing. (c) Employer hall comply with the maximum hourof labor, minimum rate of pay, an 1 other conditions of en1.ployment approved or prescribed by the President. 3. To provision in this Code shall supersede any State or Fe leral law which impo. es on emp loy ers more tringent requirements a to age of employees , wage hours of work. or a to sa fety, health anitary or general working condition or in urancc or fire protection, t.han are impo eel by thi code . -!. "\,Vhere a State law or order promulgated thereunder proYicle a higher minimum wage than i provided in this code, no p er on em ployed within that State hall be paid a wag0 below that required by suc h State law or orders. "\,Vhere such State law or order affect only females and/or male minors, th minimum rates pecifiecl for such employee shall apply under this code to all employee , whether male or :female o that such minimum rates hall apply equally to employee of both sexe . 5. No employer hall recla ify employees or duties of occupations per:forme 1 or engage in any other ubterfuge for the purpose of defeating the purposes or provi ions of the A t or of this code. 6. E-i;ery employer shall make rea onable provi ions for the safety and health of hi employees at the place and durino the hours of See parngrapb 2 of order appro,ing this Code.

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498 their employme~t. Standards for safety and health shall be submitted by the Code Authority to the Administrator within six (6) months after the effective date of this Code. 7. Every member of the trade shall display a placard adjacent to the time clock, or employees' entrance and at three (3) other prominent l o~ations in his place of business, stating the minimum wages and the maximnm hours of labor which govern the operations of said member. ARTICLE VI-ORGANIZATION, PowERS AND DuTrns OF THE CooE AUTHORITY ORGANIZATION 1. A Code Authority is hereby constituted to Administer this Code. 2. (a) The Code Authority shall consist of from sixteen ( 16) to twenty-one (21) members of the trade: or such other numb0r as may be approved from time to time by the Administrator, to be , elected as hereinafter provided. The Administrator, in his discretion, may appoint not more than three (3) additional members without vote to represent such groups or governmental agencies as he may designate and to serve without expense to the laundry trade. (b) The members of the Code Authority representing the trade shall consist of sixteen (16) individuals who shall be members of the Board of Directors of the National Association repre en ting the geographical districts of said association in the United States; and, at the di scretion of the Administrator, of not more than five ( 5) members of the trade who are not members of the National Association to be appointed by the Administrator or se lected in a manner prescribed by him. (c) In order that a Code Authority shall at all times be truly representative o:f the trade and in other respects comply with the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the Code Authority is not truly representative or does not in other respects comp l y with the provisions of the Act, may require an appropriate modification in the method of se lection of the Code Authority. 3. Each trade association directly or indirectly participating in the selection or activities of the Code Authority or Code Control Boards shall (a) impose no inequitable restrictions on membership, and (b) submit to the Administrator true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. 4. Any 1nember of the trade shall be entitled to make use o:f the insignia approved by the Administrator for the Laundry trade, and to participate in and share the benefits of the activities o:f the Code Authority and the Code Control Board having jurisdiction over his trade area by assenting to and complying with the requirements of this Code, and by either becon1ing a member of the National Asso-

PAGE 15

499 ciation and the Authorized Association serYing his trade area or paying hi reasonable share of the expenses of the creation and admini tration of this Code. Such reasonable share shall be deter mined by the Code Authority, subject to the right of review by the Administrator, on the basis of Yolum e of bu iness and s uch other factor. as may be deemed equitable. 5. Nothing contained in this Code shall constitute the members of the Code Authority or of any Code Control Board partners for any purpose. Nor shall any memb e r of the Code Authority or of any Code Control Board be liable in any manner to anyone for any act of any other member officer, agent, or employee of the Code Authority or Code Control Board. Nor shall any member of the Code Authority or of any Code Control Board exercising reasonable diligence in the conduct of hi s duties hereunder, be liable to anyone for any act or omission to act under this Code, except for his own willful misfea ance or nonfea sa nce. 6. The Code Authority shall have the following powers and duties to the extent permitted by the Act: (a) To in ure the execution of the proYision s of this Co le and proYicle for the compliance of the trade with the provision of the Act. (b) To adopt by-law s and rules and regulations for its procedure and for the administration and enforcement of this Code , in accord ance with the powers herein granted, and to submit the same to the Administrator for his approval together with true copie of any amendments or additions when made thereto, minutes of meetings when held, and such other information as to its activities a s the Administrator may deem neces. ary to e ffect the purposes of the Act. ( c) To defin e trade areas and designate the boundarie. thereof, s ubject to the approval of the Administrator.3 (cl) To establish a Code Control Board for any trade area, either through the channels of s uch laundry trade a,sociations as the National Association may designate as Authorized A ssoc iation s, or through u c h individual s or groups as the Code Authority hall designate, and to provide that each uch board hall b e truly repre sentatiYc of the trade, and such other group o r groups as the Code Authority hall direct within the trade area under its jurisdiction; to designate the trade area over whi c h each Code Control Board shall have jurisdict ion, s ubject to the approval of the Administrator; and, to delegate to s uch boards such of the powers and dutie reposed in the Code Authority as may be necessary for the effective aclmin jstration and enforcement of this code in their re s p ective trade areas.4 • (e) To choose from among its membership an executive committee of not more than five (5) pers ons and to delegate to such executive comm ittee, during intervals between meeting of the Code Authority, any of the power and duties reposed in it by this Code, provided, however that nothing herein shall reli e ,'e the Code Authority of its duties or responsibilities under this Code. 3 See paragraph :1 (i) of order approvLng this Code. 4 See paragraph 3 (2) of order approving this Code .

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500 The Chairman of the Code Authority shall be a member of the Executive Committee; one member of such Committee shall be cho en from anong tho e members of the Code Authority appointed by the Administrator or selected in the manner prescribed by him as pro vided in Section 2 (b) of Article VI; one shall be chosen from those elected by the States of ,v ashington, Oregon, Montana, Wyoming, Colorado, Utah, Idaho, California, Nevada, Arizona, Minnesota Nebras ka , South Dakota, Jorth Dakota, "\Vis consin, J\llis ouri, ICan sas and Iowa one shall be chosen from among those elected by the States of Texa s, Oklahoma New i1exico Arkan. as, J.\fississippi, Tennessee, Alabama, Louisiana, l(entucky, North Carolina, South Carolina, Georgia, Florida, District of Columbia, Maryland, Virginia and ,vest Virginia; and one hall be cho sen from among those elected by the State. of i1ichigan, Indiana, Ohio, Massachusetts, Rhode I land, Connecticut , Vermont, : Maine, New Hampshire, Ne"\\ York, New Jer 0y, Pennsylvania, Delaware and Illinois. The representatives of the Administrator as appointed in Section 2 (a) of this Article , shall b e notified of all meetings of the Executive Committee ancl may attend s uch meetings without vote. (f) To revoke any delegation of any of its powers and duties when e ver it . hall determine that they are not being fully or properly e xercised. (g) To coordinate and harmonize the acti, ities of the variou Code Control Boards. (h) To pre cribe an equitab l e method of voting at meetings of member of the trade participating in this Code. (i) To del ega te to any Code Control Board the power to establis h uniform service names for laundry services, to define said erv ice s to e. tabli h a uniform method of billing suc h services, and to pre crib0 their use within its trade area or areas.5 • (j) To cau e the Code Control Board, subject to the approval of the Administrator, to e . tablis h and prescribe, after due notice to mmber s of the trade ancl to representative of consumers and others affected by this provi ion and a public hearing in each trade area at " hich representative s of consumers and other groups affected thereby shall be given an opportunity to be heard, fair and reas onable minimum whole s ale and retail prices by trade areas for the severa l ser vi ces comprised within the definition of the laundry trade; suc h minimum whole ale and retail prices to be sufficient to provide for carrying out the purpos e s of the Act, to be consistent with mainte nance of the minimum tandarcls of quality prescribed by the Code Authority , to enable the trade to maintain the payment of at least minimum lfages h erein establi hed and other wage s properly based thereon, the furnishing of stable employment necessary to maintain the trade, and s u c h other considerations reasonably pertinent thereto. In the event that any m em ber of the trade complying with the pro vi ion s of this code. can show to the State Director of the National Emergency Council neare t the localit y within which such member i,~ ituated that hi normal and u sual price schedule, during the three con~ecutiv e year s prior to approval thereof, have been below the minimum price e tabli hed hereunder, and such fact shall have been cerbfied to the Code Control Board for the trade area in which he is r, S ee pm ngrnph :} (3) of orde r a ppro,ing t\is Code.

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501 located , such member hall not be required by uch e tablished minimum prices to increase hi aid price chedule in exce of 20%; nor thereafter to increa e hi former price chedule by more than 20% at any one time in order to comply with any reYision of such establi hed minimum price . In the e-,ent that 305' of the Yotes ca t by member. ~ of the trade in any trade area Yoting according to the method of voting pre-cribe~d for the election of the Board of Directors of the National As~ ociation . hall object to the price o e tabli heel for such trade area such price hall be automatically suspended pending a further hearing and restu ly, and findings shall have been made by the Code Control Board for such trade area sustaining such prices as fair and rea ~ onable minimum "'IT'holesale and retail price , or establishing reYisecl prices and the Administrator shall have approved such price first established or uch revised price . Any minimum prices thus e tablished may from time to time be jncrea ed or decrea ed by the Code Authority, with the approval of the Administrator according to changing conditions. Immediately after any uch prices, increases, and/or reductions haYe been approYed by the ... dmini trator, the Code Authority shall take s uch tep a are reas onably calculated to notify all members of the trade thereof. Such prices, increases and/or reductions shall go into effect upon uch date or dates as the Code Authority shall fix, subject to the approYal of the Adrn.inistrator.5 (k) To adopt and pre cribe minimum standard of quality for each of the se-,eral types of serYice performed by the laundry trade, and to this end to cooperate with a committee to be elected by the follo"'IT'ing methods : (1) One (1) actiYe member of the ational Association .hall be appointed by the Board of Directors of that Association. (2) One (1) technician from the staff of the Nationa~ A ociation shall be appointed by the Board of Directors of that A sociation. (3) One (1) per on may be appointed by the American Home Economics A ociation. (4) One (1) tBchnician (who n1ay be selected from without the trade, preferably from the United States Bureau of Standards) shall ~e agreed upon by the three (3) persons appointed under the preceding three (3) sub-paragraphs or, in the eYent they fail to agree, by the Administrator. ( 1) To make studie and iff,e tigations of conditions and practices current in the trade to gather statistics fro1n governmental and other agencies to require und secure from all members of the trade, in uch forn1 a the Code Authority may pre cribe such reports and information a i rea onably pertinent to effectuate the purpo es of the Act and of this Code, for u e of the Code Authority and the Admini trator in the admini tration and enforcement of the Code and for th~ information of the Pre ident; to compile, tabulate publi h, a_nd ch t~ibute report ba eel on such tudie inve tigations. tatistic_ , and mformation: to _a si t member of the trade participating in th1 Code by developing impro,ed methods for operations incidental to and in connection with the launclr.) trade and a uniform system of 5 See paragraph 3 (3) of order approving this Coue.

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502 accounti _ng and r eporting. \11 indi, idual' r&ports shall be kept con fid ential and only general s ummaries thereof may be published. (m) To promote under the auspices of some impartial organiza tion, the formation of u. Board of Arbitration in the jurisdiction of each Code Control Board to s-ett!e unadjusted customer claims against members of the '-rade which, by mutual consent of the interested parties, are presented to such Board of Arbitration. (n) To require that all individual and group cost data as may be necessary under this Code, be ascertained, and cost allocated to the various laundry services and articles in a manner approved by the Code Authority. All such data shall be obtainect by accountants recognized by the Code Authority as qualified. ( o) In any trade area the members of the trad-e may by agree1nent of two-thirds of the total number of votes cast according to the method of voting prescribed for the election of the Board of Directors of the National Association, ubject to the approval of the Administrator, establish uniform hours for opening and closing all retail outlets within such trade area which, when approved by the Administrator or his deputy, shall be binding upon all members of the trade within suc h trade area, provided however, in no case shall any retail outlet receive work from or deliver work to cu tamers before 5 A.M. or after 8 P.11. or on Sunday. (p) To establish and prescr ibe, ubject to the approYal of the Administrator, a uniform contract for the ale of laundry . ervice for resale to be used by all members of the trade. ( q) To designate any trade a sociation 01 any other agency or agencie s to assist it in performing its duties herein prescribed. (r) To cooperate with the Administrator in the esta blishment of an advisory council for all textile maintenance service trade , to consider and advi.se with the Admini. trator on matters of concern to two or more such service trades operating under separate code of fair competition, and to appoint representatives of the laundry trade to such advisory council. (s) To initiate, con ider, and make re commendations for the modification or amendment of this Code.G 7. In addition to the information required to be submitted to the Code Authority as set forth in this Article, there shall be furnished to government agencies such statistical information as the Administrator may deem neces ary for the purposes recited in Section 3 (a) of the Act. 8. If the Administrator shall determine that any action of a code authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that such action be sus pended to afford an opportunity for investigation of the merits of such action and further consideration by such code authority or agency pending final action , which shall not be effected unle s the Administrator approves or unless he shall fail to disapprove after 30 days' notice to him of intention to proceed with such action in its original or modified form. 7 • See paragraphs 3 (4) anu 3 (5) of ord<>r approYing this Code. 7 Sec paragraph 4 of oruer approving this Code.

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503 The following practices constitute unfair method s of competition for members of the laundry trade and are p1ohibitecl: 1. False M arkin_q 01 Lab eling.-The false marking or labeling of any laundry service which has a tendency to mislead or deceive cus tomers or prospective customers, whether as to the grade, quality, finish, or otherwise. 2. Mis ' representation or False or JfisleadJ-ing Advertising.-The u s e ( or participation therein) of, the publication or the broadcasting of any untrue, deceptive, or misleading representat ion, statement, or illustration, or the making of unfair com peti ti ve claims in connection with and for the purpose of furthering the sale of laundry service. 3. Interference with Oontractiwl R e lation s.-~1aliciously inducing or attempting to induce the breach of an existing contract between a competitor and his customer or source of supply or interfering or obstructing the performance of any such contractual duties or serYice. 4. Rebates.-The scret payment or secret allmYance to any cus tomer, or to any emp loyee of a customer of rebates , refunds, commis sions, credits, free laundry service, or unearned di counts, whether in the form of money or otherwise, including the e xten si on to certain customers of specia l serYices or privileges, :false inYoicing, and rebates under the guise of allowance for lost, misplaced , or damaged articles. 5. Unfair llf erchandising Devices.-(a) The furnishtng of free work to anyone except an employee or a bona fide charity. (b) The use of lotteries. ( c) The use of coupon books, discount coupons or premiums . (d) The giving, permitting to be given or directly offering to give free service, commissions, or any other consideration to any em ployee of any apartment house, club, or institution as an inducement to secure or retain the patronage of customers residing therein. The provisions of this section shall not, however, prohibit (1) the use of coupon books, discount coupons, premiums, or certificates by a member of the trade who was u ing such coupon books, discount coupons, premiums, or certificates on the effectfre date of this Code, under a subsisting and binding contract with a person not a member of the trade, but only until the expiration of s uch contract, or (2) the use of coupon books or of discount coupons provided the Code Control Board in any trade area appro--res s u c h u se for all members of the trade in such area. 6. Defarnation.-The defamation of a competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations, or by the false disparagement of the grade or quality of his service. 7. Espionage of Oompetitors.-Securing confidential information concerning the busine ss of a competitor by false or mi leading statement or representation, by false impersonation of one in authority, by bribery, or by any other unfair method. 3. i?nitation of 001npetitor.-The u e or imitation of the trade mark, trade name, s logan, or characteristic design or color cheme of a competitor with the intention or having the tendency or capacity of deceiving the customers of such competitors.

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5 04 ~-Fw nisld n g any Se1vice, Material or E quiprnent.-Ren dering any se rvice other than laundry service or furnishing any material s or equipment to anyone unl ess adequatel y compe nsated ther efor. 10. Enticing Away Employees.-Mal icious l y enticing away an employee of a competitor with the purpose and infon t of undul y hampering, injuring or embarrassing a competitor in his business. Nothing herein shall prevent any empl oyee from offering his services to a competitor or prevent any member of the trade from employing an employee of another member of the trade where the intiative in such change of employment comes solely fro111 the empl oyee. 11. S e lling For R e sal e . (a) The sale of laundry services knowingly to anyone for re ale who fails to comply with the provisions of thi. Code ancl the rules, regulations and interpretations promulgated hereunder. (b) Selling laundry service at wholesale to anyone for resale unles s the charges for such wholesale laundry service exceed $20 per w e ek , for each four we e k period. 12 . S e lling Below llf ini?num , Prices.-The sale of any laundry service in, or for delivery in, or for resale in, any trade area at l ess than the minimum retail or wholesale price ( as the case may be) for such s ervice as and when established for such trade area under the provisions of Article VI, Section 6 (j) of this Code . 13. S e lling B e low Standard Quality.-The offering of any laundry service to the public below the minimum standards of quality for such s ervice as and when prescribed by the Code Authority pursuant to the provisions of Article VI, Section 6 (k) of this Code. 14. E x ten s ion of Oredit.-Requiring the extension of credit to any cu stomer by a route s ale sman unless the employe r has authorized such credit and a ssumed full responsibility for the payment thereof. 15. Posting of Insi1,ranc e Inf 01'1'JU1tion.-Failure to display in a conspicuou s place a printed or written placard stating whether, to what extent, and agains t what hazards articles accepted for laundering are protected by insurance for the benefit of the customer. 16. E11iployee D eposits.-Failure of a member of the trade, who receives from any employee a deposit in the nature of a security or bond, to egregate from the assets of such member such deposit to be held in trust from which no withdrawals are to be permitted except for repayment to the employee or for payment to the employer for obligations of the employee to the employer. Any such funds not now so segregated shall be segregated at no later date than six (6) months after the effective date of this Code. ARTICLE VIII-MrscELLANEous OBLIGATIONS OF MEMBERS OF THE TRADE 1. When 1ninimum prices shall have been established, as prescribed in Article VI covering any or all services, every member of the trade shall have available at all offices and vehicles from which delivery to customers is made, a price list clearly defining such services and such of the minimum prices as shall have been so e tablished at which such services are sold. 2. All offices or vehicles distributing laundry service not owned or carrying the name of the member of the trade where the major part of such laundry service is produced shall prominently display

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505 either the term "Agency ' or ' Di. tributor" ( as the case may be), provided, however, that this section shall not b ecome effective until sixty (60) days after the effective date of this Code. 3. Every member of the trade shall display his name at each office and on each vehicle owned and/or operated by him. ARTICLE IX-lVfoDIFICATIONS AND SUPPLEMENTS 1. The President may from time to time ca ncel or modify any order, approval, license, rule or regulation, i ssued under the Act. 2. This Code, except as to provisions required by the Act, may be modified on the basis of experience or changes in circumstances, such modification to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become effective on approval of the Pres ident. 3. Any authorized association may, with the approval of the Code Authority, submit to the Administrator supplements to this Code affecting any trade area or areas served by them, providing said supplements carry out the purposes of Title I of the Act. ARTICLE X-:MoNOPOLrns No provis ion of this Code shall be so applied as to permit monop olies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. ARTICLE XI-EFFECTIVE DATE This Code shall become effectiYe on its approval by the President. Approved Code No. 281. Registry No. 1735-2-10. 0

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