UNIVERSITY OF FLORIDA
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3 1262 08482 9885
Registry No. 299-1-08
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
AS SUBMITTED ON AUGUST 31, 1933
The Code for the Quilting Manufacturers Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
QUILTING MANUFACTURERS INSTITUTE
PROPOSED CODE OF FAIR COMPETITION OF QUILTING
The Quilting Manufacturers Institute recognizes the existence of
an emergency affecting the welfare of both employees and employers
in the quilting industry. The emergency demands that unfair com-
petitive practices be eliminated; that unemployment be reduced and
relieved; and that standards of labor be improved. It is the declared
purpose of the Quilting Industry and adherents to this Code to bring,
insofar as may be practicable, the rates of wages paid within the
Quilting Industry to such levels as are necessary for the creation and
maintenance of the highest practicable standard of living; to restore
the income of enterprises within the industry to levels which will
make possible the payment of such wages and avoid further depletion
and destruction of capital assets; and from time to time to revise
the rates of wages in such manner as will currently reflect an
equitable adjustment to variation in the cost of living.
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a code of
fair competition for the quilting industry.
A. The term quilting and quilting products as used herein
is defined to mean:
(1) Quilted goods, including a piece of material, cotton, silk, satin,
or other textile fabric which has been quilted to the later made into
a finished product by some other industry.
(a) Quilted lining or interlining of any character, whether the
substance be wool or cotton, used in connection with cotton, silk,
rayon, or other textile material.
(3) Any material such as cotton, silk, rayon, or similar textile
material, which is processed by sewing through a quilting machine
with some sort of filling material, and then produced into the fin-
ished product, such as, for example, quilted bed-pad or quilted bed-
(4) Any material stitched together on a quilting machine either
with or without filling and later to be used by the garment or other
B. The term "employees as used herein shall include all persons
employed in the conduct of such operations.
C. The term productive machinery as used herein is defined to
mean quilting machines."
D. The term effective date" as used herein is defined to be
August 1, 1933, or, if this Code shall not have been approved by che
President two weeks prior thereto, then the second Monday after
E. The term persons shall include natural persons, partnerships,
associations, and corporations.
PROVISIONS PURSUANT TO SECTION 7 (a)
Employers in the quilting industry shall comply with the following
requirements of Section 7 (a) of Title I of the National Industrial
"(1) 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; (2) 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 joining, organizing, or assisting a labor organization of his
own choosing; and (3) that employers shall comply with the maxi-
mum hours of labor, minimum rates of pay, and other conditions of
employment, approved or prescribed by the President."
MINIMUM RATES OF WAGES
On and after the effective date, the wages that shall be paid by
any employer to any employee North of the Mason and Dixon line
shall be at not less than the rate of 371,20 per hour for male employees
and 321/2 per hour for female employees, or at the rates of $15 and
$13, respectively, per week for 40 hours of labor.
On and after the effective date, the wages that shall be paid by
any employer to any employee South of the Mason and Dixon line
shall be at not less than the rate of 350 per hour for male employees
and 30 per hour for female employees, or at the rates of $14 and
$12, respectively, per week for 40 hours of labor.
Overtime pay after forty hours and up to the maximum of forty-
eight hours shall be at the rate of time and a quarter.
MAXIMUM HOURS OF LABOR AND MACHINERY
On and after the effective date, employers in the quilting in-
dustry shall not operate on a schedule of hours of labor for their
employees in excess of forty-eight hours per week and they shall
not operate productive machinery in the quilting industry for more
than two shifts of forty hours each per week.
On and after the effective date employers in the quilting industry
shall not employ any minor under the age of sixteen years.
That this Code is not designed to promote monopolies or oppress
small enterprises and shall not operate to discriminate against them
and shall tend to effectuate the policy of the National Industrial
With a view to keeping the President informed as to the observ-
ance or nonobservance of this Code of Fair Competition and as to
whether the quilting industry is taking appropriate steps to effec-
tuate the declared policy of the National Industrial Recovery Act,
each person engaged in the quilting industry shall furnish duly
certified reports to the Association in substance as follows and in
such form as may hereafter be provided:
A. Wages and hours of labor: Returns every four weeks showing
actual hours worked by the various occupational groups of em-
ployees, and minimum weekly rates of wages.
B. Machinery Data: Returns every four weeks showing number
of quilting machines operating each week, the number of shifts, and
the total number of machine-hours each week.
C. Reports of production, sales, stocks, and orders: Quarterly re-
ports showing production in terms of the commonly used unit, that
is, quilting; stocks on hand both sold and unsold stated in the same
The Quilting Manufacturers Institute is constituted the agency to
collect and receive such reports under such conditions as will insure
that their contents will not be improperly divulged.
To further effectuate the policies of the National Industrial Re-
covery Act, the Quilting Manufacturers Institute is set up to co-
operate with the Administrator as a planning and fair practice
agency for the quilting industry.
Such agency may from time to time present to the Administrator
recommendations based on conditions in the industry as they may
develop from time to time, which will tend to effectuate the opera-
tion of the provisions of this Code and the policy of the National
Industrial Recovery Act, and in particular along the following lines:
A. Recommendations as to the requirements by the Administrator
of such further reports from persons engaged in the quilting in-
dustry of statistical information and keeping of uniform accounts,
as may be required to secure the proper observance of the Code and
promote the proper balancing of production and consumption and
the stabilization of the industry and employment.
B. Recommendations for the setting up of a service bureau for
manufacturing, accounting, credit, and other purposes to aid the
various plants in meeting the conditions of the emergency and the
requirements of this Code.
C. Recommendations for changes in, or exemptions from, the
provisions of this Code as to the working hours of machinery, which
will tend to preserve a balance of productive activity with con-
sumption requirements, so that the interests of the industry and the
public may be properly served.
D. Recommendations for the making of requirements by the Ad-
ministrator as to practices by persons engaged in the quilting in-
dustry as to methods and conditions of trading, the naming and
reporting of prices which may be appropriate to avoid discrimina-
tion, to promote the stabilization of the industry, and to prevent
and eliminate unfair and destructive competitive prices and
E. Recommendations for regulating the disposal of distress mer-
chandise in a way to secure the protection of the owners and to pro-
mote sound and stable conditions in the industry.
F. Recommendations as to the making available credit informa-
tion concerning customers or prospective customers to those engaged
in the industry, of information regarding terms of, and actual func-
tioning of, any or all of the provisions of the Code, the conditions
of the industry, and regarding the operations of any and all of the
members of the industry covered by such Code, to the end that dur-
ing the period of emergency available credit may be adapted to the
needs of such industry considered as a whole and to the needs of the
small as well as the large units.
G. Recommendations for dealing with any inequalities that may
otherwise arise to endanger the stability of the industry and of pro-
duction and employment.
Such recommendations, when approved by the Administrator,
shall have the same force and effect as any other provisions of this
UNFAIR METHODS OF COMPETITION
Violation by any manufacturer of quilting of any provision or
provisions of this Code, or of any approved rule issued thereunder,
is an unfair method of competition. The following are specifically
declared to be unfair methods of competition:
A. Selling or offering for sale any merchandise below cost.
B. Enticing away employees of competitors with the purpose and
effect of unduly hampering, injuring, or embarrassing competitors
in their businesses.
C. Making, causing, or permitting to be made or published, any
false or deceptive statements on, or concerning the business policies
or methods of a competitor.
D. Selling or offering for sale of any product of the industry with
misrepresentation calculated to deceive customers or prospective
customers as to the quality, quantity, grade, substance, nature, origin,
size, or preparation of any products of the industry.
E. The shipping of goods on consignment or memorandum, or
approval, either directly or indirectly. This paragraph shall not
apply to samples. A sample is defined as being one only of each
style and quality.
F. The attempt to secure lists of a competitor's customers.
G. Paying or allowing secret rebates, refunds, credits, or un-
earned discounts, whether in form of promotion fees, advertising
allowances or appropriations, money or otherwise, or extending to
certain purchasers confidential prices, special service, or privileges
not specifically mentioned in his original specifications.
H. Substituting other materials or grades for the kind ordered
without written approval of the purchaser.
I. The sale of any product or any article whatsoever other than
quilting at an unreasonable price, for the purpose of evading or
defeating the terms of this Code.
J. To represent certain prices and terms as special when they
are in fact regular prices and regular terms, with the tendency and
capacity to mislead and deceive purchasers.
K. The secret deviation from announced or published price lists
directly or indirectly in any guise by the allowance of rebates,
refunds, commissions, or discounts, undeserved freight allowances,
L. Paying or promising to pay to any employee or agent of the
purchaser, or prospective purchaser, a commission in the form of
money or anything of value, for the purpose of inducing or com-
pensating for a sale with or without the knowledge of the purchaser.
M. Postdating or predating quotations, orders, invoices, state-
ments, or other sales documents.
N. Terms of sale of quilted products shall be 3%. 10 days. E.O.M.
from date of shipment with no extra dating; and these terms shall
not be deviated from.
O. Each firm shall publish price lists of all standard items manu-
factured or processed by quilting machinery.
P. The performance of work or labor for retail stores or jobbers is
The industry shall proceed at once to provide for standard
methods of costing which shall be used by all manufacturers.
The term "cost" in the opinion of the industry should be inter-
preted to include among other items, cost of raw materials, labor,
transportation, manufacturing, depreciation, depletion, obsolescence,
insurance, interest on investment, selling, and administration
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 if it appears
that the public needs are not being served thereby and as changes
in circumstances or experience may indicate. They shall remain
in effect unless and until so modified or eliminated or until the expi-
ration of the act. It is contemplated that from time to time supple-
mentary 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 purposes and policies of Title I of the
National Industrial Recovery Act and which shall not conflict
with the provisions thereof.
An appropriate committee is hereby created and empowered to
investigate as to the functioning and observance of any of the pro-
visions of this Code, at its own instance or on complaint by any
person affected, and to report the same to the Administrator; to co-
operate with the Administrator; to propose additions, modifications,
or revisions of this Code; from time to time to require such reports
from manufacturers as in its judgment may be necessary to advise
it adequately of the administration and enforcement of the provisions
of this Code; to propose a marketing code with provisions with re-
spect to (a) collection and interchange of credit information, (b)
cooperative administration of insolvent debtors, and (c) other as-
pects of marketing; and generally to perform such other acts as may
be reasonably necessary and proper to put these resolutions into
effect and accomplish the objects and purposes of the National In-
dustrial Recovery Act. In the event such committee shall find the
rules of fair competition, or any provisions of this Code, have been
violated, the violation shall be reported to the Board of Directors
for such action as they deem proper in accordance with this Code,
including in appropriate cases, report to the United States Attorney,
the Federal Trade Commission, or the recommendation that appro-
priate proceedings be taken in accordance with the National
Industrial Recovery Act.
Such committee is also set up for the purpose of investigating and
informing the Administrator, on behalf of the quilting industry, as
to the importation of competitive articles into the United States in
substantial quantities or increasing ratio to domestic production on
such terms or under such conditions as to render ineffective or seri-
ously to endanger the maintenance of this Code and as an agency for
making complaint to the President on behalf of the quilting industry,
under the provisions of the National Industrial Recovery Act, with
ADJUSTMENT OF CONTRACTS
Where the costs of executing contracts entered into in the quilting
industry prior to the presentation to Congress of the National Indus-
trial Recovery Act are increased by the application of the provisions
of that Act to the industry, it is equitable and promotive of the
purposes of the Act that appropriate adjustments of such contracts to
reflect such increased costs be arrived at by arbitral proceedings or
otherwise, and the Quilting Manufacturers Institute is constituted
an agency to assist in effecting such adjustments.
Participation in any subsequent revision of, or addition to, this
Code, shall be extended to any person, partnership, or corporation
in the quilting industry who accepts his share of the cost and re-
sponsibility, as well as the benefit of such participation by becoming
a member of the Quilting Manufacturers Institute.
The industry approves the practice of handling disputes in a fair
and reasonable manner, coupled with a spirit of moderation and good
will, and every effort should be made by the disputants themselves
to arrive at an agreement. If unable to do so, they should agree, if
possible, upon arbitration under some one of the prevailing codes.
The President, in accordance with the provision of Clause 10 (b)
of the National Industrial Recovery Act, may, from time to time,
cancel or modify any order, approval, license, rule, or regulation
issued under Title I of the National Industrial Recovery Act.