NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR C·O·MPETITION 

FOR THE 

LEATHER CLOTH 

AND LACQUERED FABRICS 

INDUSTRY 

AS SUBMITTED ON AUGUST 28, 1933 

REGISTRY No. 999-1-02 

The Code for the Leather Cloth and Lacquered Fabrics Industry 

inlits 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 approvaCof 

.0=-

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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CODE OF FAIR COMPETITION FOR LEATHER CLOTH 

AND LACQUERED FABRICS INDUSTRY 

ADOPTED AT INDUSTRY MEETING, HOTEL COMMODORE, 

NEW YORK, N.Y., AUGUST 16, 1933 

For the purpose of complying with the provisions of Title I of the 

N at.ional Industrial Recovery Act, and effectuating the policy of 

Congress as declared in said Act, insofar as applies to the within 

Industry, the following conditions and principles are adopted as a 

Code of Fair Competition (hereinafter referred to as the "Code"), 

for the Leather Cloth and Lacquered Fabrics Industry. 

ARTICLE I-DEFINITIONS 

(a) "Act" means National Industrial Recovery Act. 

(b) "President" means the President of the United States of 

America. 

(c) "Administrator" means the duly appointed representative of 

the President to administer the National Industrial Recovery Act. 

(d) "Institute" means the Institute of Leather Cloth and Lacquered Fabrics Manufacturers, 103 Park Avenue, New York City. 

(e) "The Industry" means and includes the business of manufacturing and selling all leather cloth and lacquered fabrics or kindred 

PyroA.rylin coated fabrics. 

(f) "Persons" means natural persons, partnerships, associations, 

co~porations, and trusts, including trustees in bankruptcy and receivers. 

(g) "Productive Machinery" as used in this Code means coating 

machines and/or other equipment by which additional weight of 

Pyroxylin coating is applied, not including printing and/or spraying 

machines. 

(h) "Effective Date" means the first Monday after the first Tuesday after this Code is duly approved by the President. 

ARTICLE II-MEMBERSHIP 

Any member of the Industry is eligible for membership in the 

Institute. The provisions of this Code insofar as provided by the 

Act shall be applicable to all members of the Industry, and each 

member thereof shall be responsible for his pro rata share of reasonable costs and expenses for creating and administering this Code. 

ARTICLE III-HouRs OF LABOR, RATEs OF PAY, MINORs, AND OTHER 

Co DITioNs oF EMPLOYMENT 

SECTIO 1. Flours of Labor.-(a) This section shall be applicable to 

all employees except salesmen and tho e occupying executive, admin 

istrative, supervi ory, or technical positions. 

8222-33 ( 1) 
2 

(b) On and after the effective date, the hours of work for employees, 

except those enumerated above and hereinafter, shall be limited to a 

maximum of forty (40) hours per week, except that if for any reason 

it is necessary to require a greater rate of weekly work for certain 

employees, this shall be adjusted so that the total time worked per 

employee in any consecutive period of six (6) m·onths shall not exceed 

an average of.forty (40) hou:rs per week, but no employees shall be 

employed more than forty-eight (48) hours in any one week. 

(c) On and after the effective date, the maximum hours of labor 

of repair shop crews, engineers, firemen, electricians, and watchmen 

in the Leather Cloth and Lacquered Fabrics Industry shall, except in 

case of emergency work, be forty (40) hours a week with a tolerance of 

ten (10) percent. Any emergency time in any mill shall be reported 

monthly to the Institute. · (d) On and after the effective date, the maximum hours of labor for 

office employees in the Industry shall be on an average of forty (40) 

hours per week in any consecutive period of six (6) months. 

SEc. 2. Minimum Wages.-On and after the effective date the minimum wage that shall be paid by employers in the Leather Cloth and 

Lacquered Fabrics Industry to any of their employees shall not be 

less than forty (40) cents per working hour. In the case of any employee whose compensation is based upon a measure other than time, 

the total compensation paid shall be no less than such employee would 

be entitled to receive if his compensation were measured by a time 

rate; but nothing contained in this Section 2 shall be considered as an 

attempt to set a maximum pay for anyone employed in the Industry. 

Provided, however, that where a State law specifies a higher minimum 

wage no mmnber of this Industry shall employ within such State any 

person at a rate below the wage specified by such State law. 

SEc. 3. Minor Labor.-On and after the effective date, employers 

in the Leather Cloth and Lacquered Fabrics Industry shall not employ 

any person under sixteen (16) years of age. Provided, however, that 

where a State law specifies a higher minimum age, no member of this 

Industry shall employ within such State any person below the age 

specified by such State law·. SEc. 4. Employee Organization and Bargaining.-(a) 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 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) No employee, and no one seeking employment in the Industry, 

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. 

(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 

ARTICLE IV-PLANT-MACHINE HouRs 

Employers in this Industry shall not operate productive machinery a total of more than two (2) shifts of forty (40) hours each 

per week, averaged over any consecutive six months' period, but not 

more than ninety-six (96) hours in any one week. 

ARTICLE V-ADMINISTRATION 

The Institute is hereby designated the Agency to cooperate with 

the Administrator in administering, supervising, and promoting the 

performance of the provisions Qf this Code by the members of the 

Industry. 

ARTICLE VI-REPORTS 

(a) With a view to keeping the President and the National Recovery Administration informed as to the observance or nonobservance of this Code, and as to whether the members of the Industry are 

taking appropriate steps to effectuate the declared policy of the Act, 

and to provide for making available to the Administration and members of the Industry information concerning the Industry, each member of the Industry shall prepare and file with the Secretary of the 

Institute and to be distributed by the Institute at such times and in 

such manner as herein or hereafter may be prescribed by the Industry, 

reports and statistical data covering and relating to the number of 

persons employed, wage rates, hours of work, plant and machine 

hour operations, volume of production, volume of sales and/or shipments billed, consummated sales, stocks on hand, plant capacity, and 

productive machinery owned and/or in place, and such other data as 

may be useful to the Industry which may be specified or required 

by the Industry, subject to the approval of the Administrator, or by 

the Administrator. 

(b) Upon the effective date or at. such time thereafter as the 

Industry may determine, each member of the Industry shall file with 

the Institute a complete list of those products now covered by the 

Institute's activities, w'it.h a complet.e description of such goods, 

including construction, color and finish thereof. And each member 

of the Industry shall, at such time: file with the Institute priee schedules, price lists, di..,count sheets, and/or a list of all prices, currently 

made, for all das~es of customers, covering ull such product of the 

Industry, including therein base prices: net prices, basing points, 

t0rms, discounts, allowances and all conditions relating to or in any 

wise affecting any sale of the same. Whereupon the Institute shall 

immediately send copies of the same to all members of the Industry 

who have signed or approved this Code, or who may be subject to 

this Code and who have so filed with the Institute such schedules, 

lists, discount sheet: or statements of currently made prices. 

(c) Revised price schedules, lists, discount sheet~, and/or statements 

of current prices or changes therein, may be so filed from time to time 

thereaftel' by any member of the Indu ·try to become effec6ve upon 

the date specified therein, but such schedules, lists, discount sheets 

and/or statements of current prices or chauges therein, shall be filed 

with the Institute ten days in advance of the effective date, unless the 

Industry shall authorize a shorter period. Thereupon copies of all 
4 

such revised schedules, lists, discount sheets and/or statements of 

current prices or changes therein, with notice of the effective dates 

thereof specified, shall be irnmediately sent by the Institute to all 

such members of the Industry, who thereupon may file, if they 

inruvidually so decide, to be promptly and similarly distributed, 

revisions of their price schedules, lists, discount sheets and/or statements of current prices or changes therein, \vhirh shall become 

effective upon the date when the revised price schedules, lists, discount sheets and/or statements of curent prices or changes therein 

first filed shall e-o into effect. 

(d) No member of the Industry shall sell mrectly or indirectly by 

any means whatsoever any product.of the Industry covered by the 

provisions of paragraphs (b) and (c) of this Article VI at a price 

lower, or at discounts greater, or on more favorable terms of payment 

than those provided in his current price schedules, lists, discount 

sheets, and/or statements of currently made prices, filed and distributed as herein provided. 

(e) All reports, statistics, data, and information filed in accordance 

with the provisions of this Code shall be duly certified, when requested by the Institute or the National Recovery Administration, 

and the same shall be confidential; the individual figures and data 

filed by each member of the Industry shall be compiled with similar 

reports and data from the other members of the Industry, and. distributed to members of the Industry in combined totals, except as 

may be otherwise specified by tht3 Institute. In no event shall the 

individual reports of volume of production, volume of sales, orders 

received, unfilled orders, or stocks on hand, be revealed or disclosed 

by the Secretary of the Institute, except as may be required by the 

National Recovery Administration for the purpose of facilitating 

the administration and enforcement of the Act and the provisions 

of this Code. 

(f) Prior to the installation of additional productive machinery by 

members of the Industry, or persons engaging in this Industry, 

except for the replacement of similar productive machinery, the 

Institute may make recommendations to the Administrator that such 

persons shall first secure certificates from the Administrator that such 

installation of productive machinery will be consistent with the 

effectuating of the policy of the Act during the period of the emergency, and also recommendations for the granting or withholding by 

the Administrator of such certificates if so required by him. 

ARTICLE VII-TRADE PRACTICES 

Upon the effective date of this Code, ethical and commercial principles and practices as set forth in Exhibit "A" hereto annexed and 

made a part of this Code, shall be observed as standards for this 

Industry, and deviation therefrom or violations thereof shall be 

regarded as a violation of this Code. 

ARTICLE VIII-VERIFICATION OF REPORTS-TRADE PRACTICES 

All reports, statistic , data, and information required by this Code 

to be filed with the Institute and the trade practice et forth in said 

Exhibit " A" shall be ubject to verification and the hecking of the 

book and record of the m.ember of the Indu tr , by a competent 
5 

and disinterested person at such time or times, and by such person or 

persons as may be determined by the Institute. Provided, if it 

should appear as determined by such disinterested person or persons 

that the reports, statistics, or data were not filed when and as required 

by this Code, or were wilfully inaccurate, or that any member of the 

Industry had indulged in trade practices in violation of this Code, the 

expense of such verifying work shall be paid to the Institute by the 

member of the Industry so in default. 

ARTICLE IX-APPLICATION 

If any employer of labor in the Industry is also an employer of labor 

in any other industry, the provisions of this Code shall apply to and 

affect only that part of his business which is included in this 

Industry. 

ARTICLE X-CANCELLATION OR MoDIFICATION oF GovERNMENT 

APPROVAL 

As required by Section 10 (b) of Title I of the Act, the following 

provisions are contained in this code: 

The President may from time to time cancel or modify any order, 

approval, license, rule, or regulation issued under this Title I. 

ARTICLE XI-AMENDMENTS 

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

therein by the National Industrial Recovery Act may, with the a.pproval 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 destructive competitive practices and to effectuate other purposes and policies of Title I 

of theN ational Industrial Recovery Act consistent with the provisions 

thereof. · 

Approved at meeting on August 16th, 1933, attended (in person or 

by proxy) by the following manufacturers, representing a substantial 

majority of the industry (estimated at over 90%, both in volume and 

number): 

ATHOL MANUFACTU~ING CoMPANY. 

BowEN MILLs, INc. 

L. E. CARPENTER & Co., INc. 

L. C. CHASE & CoMPANY. 

CoATED TEXTILE MILLS, INc. 

CoTEX CoRPORATION. 

E. I. Du PoNT DE NEMOURS & 

CoMPANY. 

THE FEDERAL LEATHER CoMPANY. 

THE HoLLISTON MILLs, INc. 

THE KERATOL CoMPANY. 

LEATHER FINISH FABRics, INc. 

THE MAsLAND DuRALEATHER 

CoMPANY. 

THE PANTASOTE LEATHER CoMPANY. 

THE PERMATEX FABRICS CoMP:A.NY. 

THE STANDARD TEXTILE PRODUCTS Co. 

TEXTILEATHER CoRPORATION. 

THE wESTERN SHADE CLOTH 

CoMPANY. 

WEYMOUTH ART LEATHER CoMPANY. 

THE ZAPON CoMPANY. 
6 

ExHIBIT "A" 

TRADE PRACTICES 

No member of the Industry shall adopt any of the trade practices 

enumerated in this Exhibit, and the indulgence in any such trade 

practices shall be regarded as an unfair method of competition, and 

a violation of this Code: 

1. I nterference with Existing Contracts.-Knowingly or wilfully interfere with an existing contract for the sale and purchase of products 

of this Industry, nor induce, attempt to induce, or assist a party to 

break an existing contract for the sale of any products of this Industry. 

2. Commercial Bribery.-Offer, give, or pay money or anything of 

value to anyone in order to induce the sale, purchase, or use of the 

products of this Industry. 

3. Defamation of Competitors.-Wilfully make, cause, or permit to 

be made or published, any false statements or misrepresentations of 

or concerning the business, policies, methods, or products of a competitor. 

4. Enticing Employees.-Employ or entice employees of a competitor with the purpose and effect of unduly hampering, injuring, or 

embarrassing said competitor. 

5. Piracy of Trade Marks.-Imitate trade marks, trade names, 

slogans, or other marks of identification of another member of the 

Industrv. 

6. False Advertising.-Make, cause, or permit to be made or published any false, untrue, or deceptive statement by way of advertising 

or otherwise, concerning any grade, quality, substance, character, 

origin, or preparation of any product of this Industry. 

7. Misbranding.-Fa1sely mark or brand packages or products of 

this Industry, for the purpose or with the effect of misleading or 

deceiving purchasers or others with respect to quality, quantity, 

character, grade, or substance thereof. 

8. False lnvoicing.-Withbold from or insert in invbice facts which 

would make the invoice a false record wholly or in part of the transaction in question, or make any arrangement which would contemplate 

payment or settlement contrary to the face of the invoice. 

9. Post-Date or Pre-Date Contract or lnvoice.-Post-date or pre-date 

contracts or invoices covering products of this Industry. 

10. Guaranty Against Price Decline.-Guarantee against price decline. 

11 . Secret Rebates.-Pay or allow secretly, rebates, refunds, comrnis~::ions or discounts, whether in the form of money or otherwise. 

12. Requirement Contracts.-Accept requirement contracts. All 

contracts or orders shall be for a definite yardage with not more than 

a plus or minus tolerance of 10%, and for deliveries within a definite 

period. · 
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13. D·isposition of Non-Prime Materials.-8ell seconds, pound 

goods, scrap, slow-moving stock, etc., domestically, below his minimum price for prime quality in ex ess of 5% by volume of his sales 

in any three (3) months. If any manufacturer has an accumulation 

of more than 5% of such goods, such case shall be referred to the 

Institute for equitable disposition. All such non-prime material to 

be plainly described on tags, in acknowledgments of orders, and in 

invoices therefor. 

14. Advertising Allowances .-Make any ad verti ing allowances, 

directly or indirectly, to any person, or offer free advertising to induce 

a sale. 

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