Approved Code No. 426 Registry No. 232-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PAPER MAKERS' FELT 

INDUSTRY 

AS APPROVED ON MAY 11, 1934 

WE DO OUR PART 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 426 

CODE OF FAIR COMPETITION 

FOR THE 

PAPER MAKERS' FELT INDUSTRY 

As Approved on May 11, 1934 

ORDER 

.CoDE oF F .AIR CoMPETITION FOR THE P .APER MAKERS' FELT INDUSTRY 

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 approval of a Code of 

Fair Competition for the Paper Makers' Felt Industry, and hearings 

having been duly held thereon and the annexed report on said Code..( 

containing findings with respect theteto, having been made and 

directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all respects with 

the pertinent provisions and will promote the policy and purposes of 

said Title of said Act; and do hereby . order that said Code of Fair 

Competition be and it is hereby approved; provided, however, that 

the provisions of Article VII, Section 3, insofar as they prescribe 

a waiting ~eriod between the filing with the Code Authority (i.e. 

actual receipt by the Code Authority) and the effective date of 

revised price lists or revi ed terms and conditions of sale be and they 

are hereby stayed pending my further order. 

• HUGH s. JOHNSON' 

.Administrato1· for Industrial Reco'very. 

Approval recommended : 

H. 0. KrKa, 

Division Administrator. 

'VASIII:NGTON, D.C., 

May 11, 1934. 

58333.----544-73----34 (129) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Code of Fair Competition for the 

Paper Makers' Felt Industry presented by the Paper Makers Felt 

Association, claiming to represent 100% of the Industry. 

The hearing was conducted in vVashington, D.C: on January 17, 

1934. Every person who requested an appearance was freely heard 

in accordance with statutory and regulatory requirements. The 

Code was submitted by duly qualified and authorized representatives 

of the Industry. 

DESCRIPTION OF INDUSTRY 

The Industry is composed of eleven (11) concerns which in 1933 

did approximately $9,000,000 worth of business. In 1929 these same 

companies had annual sales of approxin1ately $15,400,000. Although paper makers felt is made primarily fron1 wool, there is 

little relation between this Industry and the Wool Textile Industry 

generally. The Paper Maker's Felt Industry manufactures a specj alty for a different kind of consumer than for any other branch of 

the wool manufacturing. 

In the Paper Makers' Felt Industry there is no necessity for limiting 

the operating hours of machinery. There is no possibility of overproduction in this Industry because every piece of goods is made on a 

definite order from a definite customer, and, with very few exceptions, 

can be used on only one definite position on a certain paper machine. 

Consequently, no manufacturer of paper makers' felt can make a 

supply in excess of the demand, and therefore there is no possibility 

of dumping goods on the market at prices below the cost of manufacture, or of creating, on account of an over- upply, the many other 

conditions which would be harmful alike to the Industry and to its 

employees. 

This characteristic of the Paper l\1akers' Felt Industry is explained 

by the fact that thousands of different sizes and styles of felt are 

required to meet the specific demands of individual paper machines. • 

Furthermore, the requirements of individual paper manufacturers 

are constantly changing, so that it would :riever be safe for a felt 

manufacturer to make felts in excess of those actually ordered. 

Standardization of this product,is impossible, and no felt manufacturer would make up a stock of felts for which he had no order. 

The sizes of looms vary in width from 40" to 540", whereas the 

average woolen or worsted mill making clothing material seldom has 

over three sizes. Besides the large range of sizes, there are also several different styles of looms, as heavier type looms are required to 

weave the heavier type felts, etc. 

(130) 
131 

As orders for different sizes and types of felts vary greatly from 

week to week, this means that the distribution of orders is such that 

it almost never happens that different loom sizes are equally busy. 

Good business on one type of felt may mean that a certain group of 

looms is very busy this week and within a perioCl of a few weeks this 

group may be almost entirely idle, and another group very bu y. 

All of which means that without a very great surplus of looms no felt 

manufacturer can hope to fill his orders promptly except by the 

flexibility obtained in running some looms many more hours per day 

than others. 

LABOR P ROVI IOXS 

The minimum wage established by this Code is 35¢ an hour. 'Vith 

certain exceptions, hours are limited to 40 per week. The exceptions 

to the maximum hours are similar to other code and exempt managerial and supervisory employees receiving $35.00 per week and 

outside salesmen. Engineers, electricians, firemen, employees engaged in repair shop, shipping and out ide crews are limited to 40 

hours per week with a tolerance of 10%, provided that time and 

one-third is paid for all time worked in excess of 40 hour . 'Vatchmen may work to 56 hours per week. 

There has been a relatively small decline in employment in these 

mills. During the 1929 peak there were 2294 workers compared 

with 1999 in the fall of 1933. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter ; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management 

under adequate governmental sanctions and upervisions, by eliminatin<Y unfair competitive practices, by promoting the fullest po sible 

utilization of the present productive capacity of industries, by 

aYoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increa ing purcha in<Y power, by re- ducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Indu try normally employs not more than 50,000 em- ployees; and is not classified by me as a major industry. 

(c) The Code as approved complie in all respects with the pertinent provisions of said Title of aid Act, including without limitation Subsection (a) of Section 3, Sub ection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant associa -

tion is an industrial association truly representative of the aforesaid 
132 

Industry; and that said association imposes no inequitable restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

For these reasons, the Code has been approved. 

Respectfully, 

HuGH S. JOHNSON, 

.A dmitnist1·ator. 

MAY 11, 1934. 
CODE OF FAIR COMPETITION FOR THE PAPER MAI\:ERS' 

FELT INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition 

for the Paper 1fakers' Felt Industry, and shall be the standard of 

fair competition for such Industry and shall be binding upon each 

member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Industry" as used herein means the manufacture 

and original sale of woven woolen felts and jackets for paper 

makers. 

2. The term "member of the Industry" as used herein includes, 

but without limitation, any individual, partnership, association, 

corporation or other form of enterprise engaged in the Industry, 

either as an employer or on its own behalf. 

3. The term " employee " as used herein, includes any and all 

persons engaged in the Industry, however compensated, except a 

member of the Industry. 

4. The terms "President", "Act", and "Adn1inistrator" as used 

herein mean, respectively, the President of the United States, Title 

I of theN ational Industrial Recovery Act and the Administrator for 

Industrial Recovery. 

ARTICLE III-HouRs 

1. No employee shall be permitted to work in excess of eight (8) 

hours in any twenty-four (24) hour period beginning at midnight, 

provided that in order to meet the requirements of customers or 

to prevent the spoilage of materials, a tolerance of two (2) hour per 

day may be allowed, but no employee shall ·be permitt€d to work in 

excess of forty ( 40) hours per week except as herein otherwise 

provided. 

2. The provisions of the foregoing section shall not apply t o the 

following: 

(a) Employees in a managerial or supervisory capacity earning 

thirty-five dollars ($35.00) a week or more and outside salesmen. 

(b) Engineers, electricians, firemen, employees engaged on repairshop, shipping and outside crews who hall not be permitted to work 

in exce s of forty ( 40) hours per "TI'eek "TI'ith a tolerance of ten per 

cent (10%); provided that time and one-third shall be paid for all 

hours worked in excess of forty ( 40). 

(c) Watchmen who shall not be permitted to work in excess of 

fifty-six (56) hours per week. 

(133) 
134 

3. The maximum hours fixed in the :foregoing sections shall not 

apply to any employee on emergency maintenance or emergency 

repair work involving breakdowns or protection o:f life or property, 

b:ut in any such special case at least time and one-third shall be 

paid for hours worked in excess of the maximum hours herein provided. Emergency hours worked shall be reported monthly to the 

Code Authority. 

4. No employee shall be permitted to work :for a total number o:f 

hours in excess of the number o:f hours prescribed for each week 

or day, whether employed by one or more employers. 

ARTICLE I\T--VVAGES 

1. No employee shall be paid less than at the rate o:f thirty-five 

(35) cents per hour. 

2. This Article establishes a minimum rate of pay which shall 

apply irrespective of whether an employee is actually compensated 

on a time rate, piecework, or other basis. 

3. Wage differentials existing for the last pay period prior to 

September 15, 1933, shall be maintained for all employees receiving 

more than the minimum herein prescribed. All employers shall 

report to the Code Authority within one month after the effective 

date of this Code such readjustment o:f pay schedules. 

4. Female employees performing substantially the same work 

as male employees, shall receive the same r ate of pay as male employees. The Code Authority shall, within ninety (90) days after 

the effective date of this Code, file with the Administrator a description of all occupations in the Industry in which both men and 

women are employed. 

ARTICLE \T--GENERAL L ABOR PROVISIONS 

1. No person under sixteen (16) years of age shall be employed in 

the Industry. No person under eighteen (18) years of age shall be 

employed at operations or occupations which are hazardous in nature 

or dangerous to health. The Code Authority shall submit to the 

Administrator within thirty (30) days from the effective date a list 

of such operations or occupations. In any State an employer shall 

be deemed to have complied with this provision as to age if he shall 

have on file a certificate or permit duly signed by the Authority in 

such State empowered 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) 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 o:f 

labor, or their agents, in the designation of such representatives or in 

self-organization or in other concerted activities for the purpose o:f 

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 
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or to refrain from joining, organizing, or assisting a labor organization of his own choosing, and 

(c) That employers shall comply with the maxin1mn hours of 

labor, minimum rates of pay, and other conditions of employment 

approved or prescribed by the President. 3. No employer shall reclassify em.ployees or duties of occupations 

performed or engaged in any other subterfuge for the purpose of 

defeating the purpo es or provisions of the Act or of this Code. 

4. To prevent any improper speeding up of work ( tretchouts), 

no employee in the Industry shall be required to do any work in xcess of the practice as to the ,-.las of work of such employee· prevail- ing on July 1, 1933, unless such increase is submitted to and approved 

by the Code Authority. 

5. No provision in this Code shall super ede any State or Federal 

law which imposes on employers more stringent requirements a to 

age of employees, wages, hours of work, or as to safety, health, sanitary or general working conditions, or insurance, or fire protection, 

than are imposed by this Code. 

6. All employers shall post Articles III, IV and V of this C de in 

conspicuous places accessible to employees. Every member of the 

Industry shall comply with such regulations relating to posting of 

provisions of codes as have been or may be pre cribed by the 

Administrator. 

ARTICLE VI-AmurNISTRA TION 

1. There shall forthwith be constituted a Code Authority to cooperate with the Administrator in the administration of this Code. 

The Code Authority shall consist of three (3) persons elected by a 

fair method of selection to be approved by the Administrator. 

2. In addition to membership as above provided, there may be a 

member or members without vote and without expense to the Industry to be appointed by the Administrator. 

3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall-

(1) impose no inequitable restriction on membership, and 

(2) 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. In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with the 

provisions of the Act, the Administrator may prescribe 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 selecting of the Code Authority. 

5. Members of the Industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by assenting to and 
136 

complying with the requirements of this Code and sustaining their 

rea onable share of the expenses of its administration. Such reasonable hare of the expenses of administration shall be determined by 

the Code Authority, subj ect to approval by the Administrator, on the 

basi of volume of business andj or such other factors as may be 

deemed equitable. 

6. Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpose. Nor shall any 

member of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent, or employee of the 

Code Authority. Nor shall any member of the Code Authority, 

ex-ercising reasonable diligence in the conduct of his duties hereundEr, be liable to anyone for any action or omission to act under 

this Code, except for his own willful misfeasance or nonfeasance. 

7. The Code Authority shall have the following further powers 

and duties, the exercise of which shall be reported to the Admjni trator. 

(a) To obtain from members of the Industry such information 

and reports as are required for the administration of the Code. 

In addition to information required to be submitted to the Code 

Authority, members of the Industry subject to this Code shall 

furnish such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3 (a) of the Act, to 

such Federal and State agencies as the Administrator may designate; provided that nothing in this Code shall relieve any member 

of the Industry of any existing obligations to furnish reports to 

any Government agencies. No Individual report shall be disclosed 

to any other member of the Industry or any other party except to 

such other governmental agencies as may be direct(;'d by the Administrator. 

(b) To secure from members of the Inuustry an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Code Authority and its activities. 

(c) To recommend to the Administrator further fair trade practice provisions to govern members of the Industry in their relations 

with each other or with other industries and to recommend to the 

Administrator measures for industri.al planning, including stabilization of employment. 

(d) To recommend modification of this code, 'vhich, after notice 

to the members of the Industry and their approval, shall become 

effective as part of this code upon approval by the Administrator 

after such notice and hearing as he may specify. 

(e) To adopt by-laws, and rules and regulations for its procedure 

and for the administration of this code. 

8. If the Administrator shall at any time determine that any 

action of the 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 effective unless the Administrator approv~s, or unless he 

shall fail to eli approve, after thirty (30) days notice to him of 

intention to proceed with such action in its original or modified fonn. 
137 

ARTICLE VII-TRADE PRACTICE RULES 

1. Uniform Oost Accounting.-The Code Authority shall cause to 

be formulated an accounting system and method of cost finding and/ or 

estimating capable of use by and acceptable to all members of the 

Industry. After such system and methods have been formulated 

and approved by the Admini trator, full details concerning them 

shall be made available to all members. Thereafter, all members 

shall determine and/ or e timate costs in accordance with the purpos s 

of such methods. 

2. Selling B elo-w Reasonable Oost.-When the Code Authority 

determines that an emergency exists in this Industry, and that the 

cause thereof is destructive price cutting such as to render ineffective 

or seriously endanger the maintenance of the provi ions of this Code, 

the Code Authority may cause to be determined the lowest rea onable 

cost of the products of this Indu try, such determination to be subject 

to such notice and hearing as the Administrator may require. The 

Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of the emergency it shall be an 

unfair trade practice for any member of the Indu try to sell or offer 

to sell any products of the I ndustry for which the lowest reasonable 

cost has been determined at such prices or upon such terms or conditions of sale that the buyer will pay less therefor than the lowest 

reasonable cost of such products. 

When it appears that conditions have changed, the Code Authority, upon its own initiative, or upon the request of any interested 

party, shall cause the determination to be reviewed. 

3. Published Prices.-Within thirty (30) days after the effective 

date each member of the Industry shall file with the Code Authority 

a price list for all products of the Industry old or offered for sale 

by him, together with the discounts and terms of payment. 

Revisions in price lists and/ or discount sheets may be filed thereafter with the Code Authority by any member of the Industry to 

become effective upon the date specified thereon, provided, however, 

that such revision shall be published and filed with the Code Authority ten (10) days in advance of the effective date thereof, unless 

the Code Authority shall authorize a shorter period. Copies of 

revised price lists and discount sheets with notice of the effective 

date specified shall be sent immediately by the Code Authority to all 

known members of the industry who thereupon ma.y file, if they so 

desire, revision of their price lists and/or di count sheets, which 

shall become effective upon the date when the revised price list or 

discount sheets first filed shall go into effect. 

Price lists shall be open for inspection to all interested parties 

immediately upon being filed with the Code Authority and the trade 

shall be notified when revised price lists are filed. 1 

4. Sales Below Published Price.-N o member of the Industry shall 

sell or offer to sell any products of the Industry at prices lower than 

the price quoted in his price list or on more favorable terms and 

conditions of sale than the terms and conditions of sale previously 

published and filed by such member with the Code Authority in 

1 See paragraph 2 of order approving this Code. 
138 

accordance with the foregoing provisions and in effect at the time af 

such sale. . 

5. Guarantees.-No member of the Industry shall guarantee any 

product of the Industry against advances or protect any product 

of the Industry against decline in price or guarantee the life and 

services of any product of the Industry, except for the usual guarantees against defects in manufacturing. 

6. I naccurate Reference to 001npetitors, etc.-No member of the 

Industry shall publish or otherwise make any statement which 

refers inaccurately, in any material particular to any competitors 

or their goods, prices, values, credit terms, policies, or services. 

7. Tenns.-No member of the Industry shall allow cash discount 

in excess of the following : 

(a) 1% , 10 clays; 30 days net for delivery east of the Rocky 

Mountains. 

(b) 1%, 20 clays, 40 days nert for delivery west of the Rocky 

1\-fountains. 

ARTICLE VIII-MomFrcA TION 

1. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. 

2. Such of the provisions of this Code as are not required to be 

included herein by the Act, may, with the approval of the Administrator, bp modified or eliminated in such manner as may be indicated by the needs of the public, by changes in circumstances, or 

by experience. 

ARTICLE IX-1\IIoNoPoLrEs 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective ten clays after app roval. 

Approved Code No. 426. 

RegistrY' No. 232-1-02. 

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