UNIVERSITY OF FLORIDA
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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
TEXTILE BAG INDUSTRY
AS APPROVED ON SEPTEMBER 18, 1933
WE DO OUR PART
1. Executive Order of President Roosevelt
2. Report of Administrator
3. Report of Deputy Administrator
4. Text of Code
UNIV. OF FL L d.
i t EPI-OTORY
GOVERNMENT PRINTING OFFICE
sr ale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
CODE OF FAIR COMPETITION FOR THE TEXTILE BAG
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 Textile Bag Industry, and hearings hav-
ing been held thereon and the Administrator having rendered his
report containing an analysis of the said Code of Fair Competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said Code of Fair
Competition complies in all respects with the pertinent provisions
of Title I of said Act and that the 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 July 16, 1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
THE WHITE HOUSE,
September 18, 1933.
REPORT OF THE ADMINISTRATOR
SEPTEMBER -, 1933.
To the President:
This is a report of the Hearing on the Code of Fair Compeitition
for the Textile Bag Industry in the United States, conducted in Room
2062, Department of Commerce Building in Washington, D.C., on
August 31, 1933, in accordance with the provisions of the National
Industrial Recovery Act.
The following papers are included and annexed:
1. Code submitted.
2. Notice of Hearing.
3. Bylaws of the Textile Bag Manufacturers' Association.
4. Statement of procedure.
5. List of witnesses.
6. Transcript of the records.
7. Statistical analysis.
In accordance with the customary procedure every person who
filed an appearance was freely heard in public, and all statutory and
regulatory requirements were complied with.
The Code which is attached was presented by duly qualified and
authorized representatives of-the Industry, complying with the stat-
utory requirements, as representing 80% of the capacity of the
GENERA L-CHARACTERISTICS OF THE INDUSTRY
The Textile Bag Industry includes the manufacture of a general
line of bags made from cotton cloth purchased in this country and
imported from India, for the manufacturers own use or for sale.
Such bags are used almost entirely as shipping containers and to a
very large extent for agricultural products .
Over 90% of the cotton bags and probably over 75% of the burlap
bags produced by our industry are printed with the buyer's brand
applying to the product for which he uses the bag as a shipping
It is estimated that more than 90% of the output of the Textile
Bag Manufacturing Industry is used by producers of agricultural
products or derivatives thereof, or by producers of other products
subject to extraordinary seasonal demand. For this reason the rate
of production fluctuates during the year with a peak rate of approx-
imately 150% of the annual average, and a slack rate of approxi-
mately 70% of the annual average.
It is estimated that approximately 35 concerns comprise the Tex-
tile Bag Industry, based on a careful analysis of all concerns known
to have manufactured textile bags with the exception of those
(a) Primarily engaged in conditioning and resale of second-hand
(b) Incidentally engaged in making textile bags as a part of
other principal activities such as awning and tent manufacturing,
(c) Engaged in the manufacture of special bags such as coffee-urn
bags, tea bags, tobacco bags, cotton pick sacks, and small cotton
mailing bags not usually considered a part of, or competitive with
the general line of textile bags.
About 60% of the employees in the Industry are women.
The industry reports that employment in the Textile Bag In-
dustry is now approximately 88.5% of the 1929 peak of employment
as compared with only 58% for all manufacturing industries, as
reported by the National Industrial Conference Board.
In 1928 and 1929 the Textile Bag Industry gave employment to
approximately 9,700 individuals with a plant operation of 49.4
hours per week. Today there are approximately 8,700 employees
and an average plant operation of 47.5 hours per week.
The percentage of the 1933 pay roll to the 1929 pay roll for the
Textile Bag Industry was 66%, and in all manufacturing industries,
The average wage during 1933 to the average wage during 1929
in the Textile Bag Industry was 76% and in all manufacturing
industries was 60%.
Size of the Industry.-The aggregate invested capital (estimated)
is as follows:
1928------------ ----------------- $5, (00, 00)
1930------------------------------- 45, 000, 000
1932 --------------------------_ 45, (000, 000
1933 ------- -------------------- 45, 000, 000
The aggregate number of employees (estimated) was as follows:
1928__--------_-------------------- 9. 710
1930 ------- -------------------------- 9, 700
1932 _----_-------_ _-------------- 8, 400
1933-------------------------- 8, 700
The aggregate production capacity (estimated) is as follows:
1928---- --------------- 222, 000,000
1930 ------------------ 179,000, 000
1932 -- -------------- 127, 000, 000
The aggregate annual sales in dollars (estimated) was as follows:
1930 ------------------ 119,000,000
The statistical position of the industry has fairly been represented
For the establishment of minimum wage rates in the industry the
United States has been divided into two sections, the North and the
South. The line of division is that established by the Cotton Textile
The minimum wages at the rate of $13 per week in the North and
$12 per week in the South are identical with those established in
the Cotton Textile Industry. Because of the fact that a number of
textile bag manufacturers operate their own cotton nills, that many
of the bag manufacturing plants are located in textile areas, and
that the class of labor in the textile bag industry is similar to that
in the textile industry, it is clearly evident that the labor conditions
should be substantially the same.
This code provides that productive machinery shall not be oper-
ated in excess of two shifts of 40 hours each per week.
The code provides for a 40-hour week for employees with a 48-
hour maximum during the peak season, which is not to exceed 8
weeks in any 1 year.
For the administration of the code there is established a Control
Committee duly set up in fairness to the entire industry.
The provision for Trade Practice Rules contained in this code
should to a great degree correct certain evils that have existed and
that have developed in the industry,
For several months prior to the date of hearing the textile bag
industry held numerous meetings, the purpose of which was to
prepare and adopt a code satisfactory to all manufacturers in the
Unfortunately, from time to time some manufacturers took excep-
tion to certain provisions of the code. After considerable work and
effort, however, a uniform code was developed so that on the clay
before the hearing date all exceptions and protests were withdrawn
while five unassociated manufacturers joined the Textile Bag Manu-
Thus was shown an unusual spirit of fairness and a spirit of give
and take in finally reaching agreement, thereby formulating a code
equitable to all and conforming to the purposes of the Act.
The Administrator finds that-
(a) The Code as revised complies in all respects with the pertinent
provisions of Title I of the Act including, without limitations,
subsection (a) of Section 8 and subsection (b) of Section 10 thereof;
(b) The Textile Bag Industry imposes no inequitable restrictions
upon admission to membership therein and are truly representative
of the Textile Bag Industry.
(c) The Code is not designed to eliminate or oppress small enter-
prises and will not operate to discriminate against them, and will
tend to effectuate the policy of Title I of the National Industrial
Accordingly, I recommend the approval of the Code of Fair Com-
petition for the Textile Bag Industry.
HUdH S. JoHxson,
SEPTEMBER 12, 1933.
To: General Hugh S. Johnson.
From: A. D. Whiteside.
Subject: Code for the Textile Bag Manufacturing Industry.
The Hearing of the Code for the Textile Bag Manufacturing In-
dustry was conducted by H. B. Ludlum, Jr., acting in the capacity of
an Assistant Deputy Administrator. The Hearing was held on
August 31, in Room 2062 of the Commerce Building.
Attached to this memorandum are the reports from the Labor,
Industrial and Consumers' Advisory Boards, Legal Division, and
Economic Research and Planning Division. The suggestions con-
tained in the reports from the Advisory Boards are as follows:
1. Labor Advisory Board.-The Labor Advisory Board approved
the report with the qualification that any improvement which should
be made in the Cotton Textile Code is to be applied to the Textile
2. Industrial Advisory Board.--Mr. H. H. Allen, Industrial Ad-
visor, reported complete approval of the Code.
3. Consumers' Advisory Board.-Part of the recommendations of
the Consumers' Advisory Board were incorporated in the provisions
of the Code, whereas with the other recommendations they made,
it was felt that they should be considered by the Textile Bag Code
Committee for future amendments.
One objection of the Consumers' Board was on the subject of
replacement cost of materials, but as this has been a practice ip the
Industry for many years, it was not considered advisable to follow
4. Legal Division.-All of the provisions in the Code were exam-
ined and approved by the Legal Division.
5. Economic Research and Planning Division.-The report of this
Division shows that the Textile Bag Industry has maintained a very
good position during the depression and that the provisions of the
Code will increase employment substantially.
I have examined the Code and have considered the reports from
the Advisory Boards and recommend the approval of the Code as
A. D. WHrrmEmE,
Digitized by the Inte-nei Archive
in 2011 with funding Irom
University of Florida, George A. Smalhers Libraries with support from LYRASIS and the Sloan Foundation
CODE OF FAIR COMPETITION FOR THE TEXTILE BAG
To effectuate the policy of Title I of the National Industrial
Recovery Act during the period of emergency, the following pro-
visions are established as a Code of Fair Competition for the Textile
ARTICLE I-DEFINITIONS OF TERMS
(a) The term textile bag industry ", when used in this Code,
includes the manufacture of a general line of bags made from new
cotton and new burlap woven cloth for the manufacturer's own use
or for sale.
(b) The term employers" shall mean all who employ labor in
the conduct of any branch of the textile bag industry as defined
(c) The term "employees ", as used herein, shall include all per-
* sons employed in the conduct of the textile bag industry.
(d) The term productive machinery" as used herein, is defined
to mean sewing machines and,'or printing presses, baling presses,
turning machines and all other productive machinery used in the
Textile Bag Industry.
(e) The term learner as used herein shall mean an employee
engaged in any process of the industry requiring skilled labor with
less than eight (8) weeks' experience in the same or any comparable
(g) The term effective date as used herein, is defined to mean
the second Monday after the approval of this Code by the President
of the United States.
ARTICLE II-LABOR PRovISIONS
The textile bag industry will comply with the following specific
provisions of the National Industrial Recovery Act.
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from from joining, organizing, or assisting a labor organ-
isation of his own choosing; and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
ARTICLE III-REGULATIONS or HOURs OF WORK
(a) (1) No employee except emergency maintenance and repair
crews, engineers, electricians, firemen, supervisory staff, shipping
crews, watching crews, outside crews, and cleaners shall work more
than forty hours per week, or more than eight hours in any twenty-
four hour period, provided, however, that during peak seasons (not
to exceed eight weeks in any one year) employees may work not more
than forty-eight hours per week.
(2) The Control Committee hereinafter provided for in Article
VI, shall prepare and submit to the Administrator by January 1,
1934, a report on the hours of labor for cleaners and outside
(b) No productive machinery shall be operated for more than two
shifts of forty hours each per week.
ARTICLE IV-MINIMUM WAGE RATES
(a) For the purpose of determining minimum wages, the industry
shall be divided into the following two sections:
(1) The States of Maryland, Virginia, West Virginia, North Caro-
lina, South Carolina, Georgia, Florida, Alabama, Mississippi, Ten-
nessee, Kentucky, Louisiana, Arkansas, Oklahoma, Texas, and the
District. of Columbia, shall constitute the Southern Section."
(2) All other states of the United States shall constitute the
(b) On or after the effective date, no employee, except learners,
sweepers, elevator men, yard men, hand truckers, and infirm or physi-
cally handicapped employees, shall be paid less than the rate of
twelve dollars per week when.employed in the southern section of
the industry, or less than the rate of thirteen dollars per week when
employed in the northern section, for forty hours of labor.
Learners, sweepers, elevator men, yard men, and hand truckers
shall be paid not less than eighty percent of the minimum wage set
forth in this section.
At no time shall more than ten percent of the total employees be
classified as learners and at no time shall more than five percent of
the total employees be classified as infirm or physically handicapped
(c) Although excepted from maximum-hour provisions, repair-
shop crews, engineers, electricians, and watching crews will be paid
time and one third for overtime.
(d) Employers shall not reduce the compensation for employment
now in excess of the minimum wages hereby agreed to (notwithstand-
ing that the hours worked in such employment may be hereby re-
duced) and shall increase the pay for such employment by an equi-
table readjustment of all pay schedules. This clause shall be con-
strued in the same manner as paragraph 7 of the President's Reem-
ployment Agreement has been interpreted by the National Recovery
Administration in Interpretations Nos. 1 and 20, and subsequent
ARTICLE V-PROHIBITION OF CHILD LABOR
No employer in the textile-bag industry shall employ any minor
lun4er the age of sixteen years; provided, however, that when a State
Law specifies a higher minimum age, no person below the age so
specified by such law shall be employed within that State.
(a) To effectuate further the policies of the National Industrial
Recovery Act a Control Committee is hereby designated to cooperate
with the Administrator as a planning and fair practice agency for
the textile-bag industry. This committee shall consist of the mem-
bers of the Executive Committee of the Textile Bag Manufacturers
Association, one representative to be elected by companies engaged
in the textile-bag industry who are not members of the Textile Bag
Manufacturers Association, and such governmental representatives,
without vote, as shall be appointed by the President of the United
States. Such agency may from time to time present to the Admin-
istrator recommendations based on conditions in the textile-bag in-
dustry as they may develop from time to time which will tend to
effectuate the operation of the provisions of this Code and the policy
of the National Industrial Recovery Act.
(b) The Control Committee is also set up to cooperate with the
Administrator in making investigations as to the functioning and
observance of any provisions of this Code, at its own instance or on
complaint by any person affected, and to report the same to the
(c). The Control Committee. may recommend that the Administra-
tor of the National Industrial Recovery Act require registration by
persons engaged in the textile bag industry of their productive ma-
chinery. The Committee may also recommend that no installation
of. additional productive machinery, except for replacement of a
similar number of existing machines, be permitted by anyone, unless
the Administrator shall find that the installation of such additional
machinery will tend to effect the policy of the National Industrial
Recovery Act and shall give his approval thereto.
(d) Recommendations of the Control Committee shall upon ap-
proval by the Administrator after such public notice and hearing
as he may specify become operative as part of this Code.
(e,) The Control Committee shall from time to time collect such
reports from those engaged in the textile bag industry as the Control
Committee, subject to the approval of the Administrator, may require
in order to effectuate the administration and enforcement of the
provisions of this Code.
(f) Any employer may participate in the endeavors of the Textile
Bag Manufacturers Association relative to the revisions or additions.
to or administration of this Code by accepting the proper pro rata
share of the cost and responsibility of creating and administering
it, either by becoming a member of said Association or by paying
to it an amount equal to the dues from time to time provided to be
paid by a member in like situation of the Textile Bag Manufacturers
ARTICLE .VII-TRADE PRACTICE RULES
SECTION 1. After such time as the Control Committee, subject to
the approval of the Administrator, shall determine those items that
shall be used in determining costs, it shall be an unfair method of
competition for a manufacturer to sell his product at less than his
cost of production, which shall include the items specified by the
The cost of raw material, namely, cotton cloth and burlap, shall
be computed on the basis of the replacement cost. In case of burlap,
spot, afloat or future shipment as the case may be for the shipment
period from the bag factory of bags sold, prevailing as of the date
of sale. Replacement cost may be transmitted by the Secretary of
the Association to its members and non-members, by telegraph or
mail, as changes occur.
SEC. 2. Price Lists: Each member shall publish his price lists on
cotton flour, meals, and feed bags which shall clearly state the
terms and conditions under which the bags are to be sold by him.
The price lists so published shall be maintained by him and any de-
viation by him from such published price lists shall be considered
an unfair trade practice and is in violation of this Code.
SEC. 3. A purchaser shall not have the right, either expressly or
tacitly, to cancel or amend any order for merchandise, without proper
SEC. 4. Merchandise shall not be sold on the basis of a guarantee
SEC. 5. Orders and contracts shall specify quantities, prices and
delivery dates, and shall be binding alike upon both buyer and seller.
SEC. 6. Manufacturers shall not book orders with their customers
immediately prior to making an advance and for the purpose of
favoring such customers.
SEC. T. Manufacturers shall not announce price advances to sales-
men or special purchasers prior to the effective date of such advances,
nor shall they after they have advanced their prices allow certain
purchasers to book bags at prices in effect just prior to the advance.
SEC. 8. Quoted terms as to quantity differentials shall be lived
up to and all purchasers shall be treated in identically the same
manner with respect to quantity differentials. No purchaser shall
receive the benefit of larger quantity prices on shipments covering
smaller quantities where other purchasers do not receive the same
SEC. 9. Manufacturers shall not list special or extra charges,
such as charges for back printing, all over-printing, etc., and then
refund or rebate to certain purchasers such charges unless all pur-
chasers are treated on exactly the same basis with respect to this
SEC. 10. The effecting of adjustment or claims with purchasers of
textile bags in such manner as to grant secret allowances, secret
rebates, or secret concessions, creates in effect price discrimination
and is a violation of:the Code.
SEC. 11. In the event of a change in price of textile bags, the
giving in any form df adjustments, allowances, discounts, credits,
or refunds to purchasers or sellers of bags, for the purpose or with
the effect of altering retroactively the price quoted or charged, in
such manner as to create price discrimination, is a violation of this
SEC. 12. The pre-dating or the post-dating of any invoice or con-
tract for the purchase or sale of textile bags, except to conform to
a bona fide agreement for the purchase or sale entered into on the
pre-date, is a violation of this Code.
SEC. 13. Terms of Sale shall be strictly adhered to. The payment
or allowance of secret rebates, refunds, credits, or unearned discounts,
whether in the form of money or otherwise, or extending to certaili
purchasers such services or privileges not extended to all purchasers
under like terms and conditions shall be a violation of this Code.
SEC. 14. Attempts to purchase business or obtain information
concerning a competitor s business by gifts or bribes shall be a
violation of this Code.
SEC. 15. The making of, causing or permitting to be made, any
false or deceptive statements, either written or oral, of or concerning
the business policy of a competitor, his product, selling price, finan-
cial, business or personal standing, shall be a violation of this Code.
SEC. 16. Inducing or attempting to induce by any means or device
whatsoever, the breach of contract between a competitor and his
customer during the term of such contract shall be a violation of this
SEC. 17. When a manufacturer has made a quotation on bags,
such quotation shall stand and be final and not be changed unless
justified by a change in the market for the goods involved.
ARTICLE VIII-GENERAL PROVISIONS
(a) No provision in this code shall be interpreted or applied
in such manner as to-
(1) Promote monopolies;
(2) Eliminate or oppress small enterprise; or
(3) Discriminate against small enterprises.
(b) This Code and all the provisions thereof are expressly made
subject. to the right of the President, in accordance with the provi-
sions of Clause 10 (b) of the National Industrial Recovery Act, from
time to time to cancel or modify any order, approval, license, rule
or regulation, issued under Title I of said Act, and specifically to
the right of the President to cancel or modify his approval of this
Code or any condition imposed by him upon his approval thereof.
Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in the circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code or
additional codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and destruc-
tive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act con-
sistent with the provisions thereof.