111 11 11111~11ii~l l~ ~l, fl flll[lfllli 111 111 1 3 1262 08486 7562 Registry No. 232-1-03 

NATIONAL RECOVERY ADlVHNISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

HAIR AND JUTE FELT 

INDUSTRY 

AS APPROVED ON OCTOBER 31, 1933 

BY 

PRESIDENT ROOSEVELT 

1. Executive Order 

2. Letter oof Transmittal f 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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(ll) 
EXECUTIVE ORDER 

CoDE oF FAIR CoMPETITION FOR THE H AIR AND JUTE FELT I NDUSTRY 

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 Hair and Jute Felt Industry, 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 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 it is hereby approved. ~ 

THE WHITE HousE, 

October 31, 1933. 

Approval recommended: 

HUGH s. JOHNSON' 

Administrator. 

18873°----188-114----33 

FRANKLIN D. ROOSEVELT. 

(III) 
NATIONAL RECOVERY ADMINISTRATION 

To the PRESIDENT. 

I. INTRODUCTION 

This is the report on the application for, and public hearing on, 

a Code of Fair Competition for the Hair and Jute Felt Industry 

as proposed by the Hair and Jute Felt Manufacturers' Association. 

The hearing was conducted in Washington, D.C., on September 

29, 1933. Every person who requested an appearance was freely 

heard in accordance with statutory and regulator:y requirements. 

The code was presented by duly qualified and authonzed representatives of the industry complying with the statutory requirements as 

representing 90 percent of the volume of business and 83.33 percent 

of the number of establishments. 

The following exhibits are included and attached: 

1. Code as finally proposed. 

2. Notice of hearing. 

3. Statement of procedure. 

4. Statistical analysis by Research and Planning Division. 

5. Transcript of record. 

6. Report of Deputy. 

7. List of witnesses. 

8. Constitution and bylaws of the Hair and Jute Felt Manufacturers' Association. 

II. DESCRIPTION OF INDUSTRY 

The Hair and Jute Felt Industry is one of the small but distinct 

divisions of the textile field. 

At the present time this industry is composed of 17 members with 

a production of about $4,500,000, although the normal production 

would more likely approximate $9,000,000 annually. These 17 firms 

now employ in the neighborhood of 1,621 persons. 

Althou{)'h the products are fabricated from the same raw materials 

used by the textile industry generally, the productive machinery, as 

well as the competition, are different. Certain items are made by 

the punching process while others are made by hardening machines, 

or, again, by a combination of both. The chief competition is with 

cork, paper, wood fibers, straw, and sea weed as insulation materials, 

with cork and paper in the gun-wad field, with rubber· and celotex 

for automotive use, and with paper in the field of carpet lining. 

Only to a very limited extent is there any competition with cotton, 

wool, silk, r ayon, or other textile fabrics. 

(IV) 
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Seasonal trends and the production schedules of other industries 

exert considerable influence. For example, gun wadding reaches its 

peak during the early fall, while products for the automobile industry naturally follow the trend of output in that industry. 

At first glance it would seem that because hair and jute products 

are of a nonperishable nature a mere even annual production could 

be obtained by manufacturing in anticipation of demand. There 

are several factors that make this course impractical. The raw materials, as well as the finished products, are of an extremely bulky 

nature and would necessitate lar~·e storage facilities, which the 

industry does not possess and would not be justified in building. 

Also, the raw materials are subject to price fluctuations that would 

entail the danger of severe losses if sufficient inventories of finished 

or unfinished goods were stocked. 

Because of this, firms representing 95 percent of the productive 

capacity of the industry were opposed to any limitation of machinery 

hours and claimed that any restriction would work a severe hardship, either through loss of business or by the necessity for further 

plant investment. 

A group in the industry, small in both number and volume, wished 

to have productive machin ery limited to two shifts of forty hours 

per week, which was not granted because it was felt that such a 

restriction would react to the detriment of the industry and the 

public alike. 

It is proper to point out that in normal times an important part of 

the Hair and Jute Felt Industry's products are used by the building 

trades for soundproofing and insulation purposes, as well as by the 

builders of railroad passenger and freight cars. Both of these industries ha-ve been at low ebb for the last f ew years, but when the 

expected upturn in building construction and railroad ~placement 

occurs, hair and jute felt manufacturers would be seriously handicapped in supplying the requirements of these trades if their machinery was hedged about with restrictions. 

Because of the entire lack of any competition with other branches 

of the textile industry, it is entirely appropriate that the Hair and 

Jute Felt Industry shculd be allowed to operate machinery on an 

unrestricted basis. 

III. LABOR PROYISIONS 

The industry proposes to pay a minimum wage of 35¢ per hour, 

with a maximum of 40 hours per week for labor. A tolerance of 

10 percent above this figure will be allowed for certain employees 

such as hair washers, dryers, and extractors, who will receive time 

and one third overtime f or work in excess of 40 hours. 

This leeway was to avoid any possible spoilage of raw material, 

particularly hair, during preparatory processes. After the hair is 

re-ceived from the tannery, it is washed, and, once in the wet state, 

must be carried through other processes until dried and baled, becau e if left wet, deterioration and spoilage would result. 

IV. ADMINISTRATION 

The provisions for administration of this code are capable of providing the NRA and the Hair and Jute Felt Industry with suffi.-

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cient data to make recommendations for the elimination 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 industry as a whole. 

V. CoNCLUSION 

I find that the code complies in all respects with the pertinent 

provisions of title I of the National Industrial RecoYery Act, includIng, without limitation, subsection (a) of Section 7, and subsection 

(b) of Section 10 thereof. 

The Hair and Jute Felt Manufacturers' Association is truly representative of the Hair and Jute Felt Industry and the bylaws of this 

association provide no inequitable restrictions to membership. 

Accordingly7 I hereby recommend the approval of the Code of 

Fair CompetitiOn for the Hair and Jute Felt Industry. 

Respectfully submitted. 

HuoH S. JoHNsoN, 

Administrator. · 
CODE OF FAIR COMPETITION FOR THE HAIR AND JUTE 

FELT INDUSTRY 

ARTICLE I-PREAl'tiBLE 

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 Hair and Jute Felt Industry and shall be 

the standard of fair competition for such industry and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

(a) The term "industry", as used herein, includes the manufacture of felt principally from hair and/ or jute by the hardening 

and/ or punching processes. 

(b) The term "employee", as used herein, includes anyone 

engaged in the industry in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of such 

compensation. 

(c) The term "employer", as used herein, includes anyone by 

whom any such employee is compensated or employed. 

(d) The term "member of the industry", as used herein, includes 

anyone engaged in th€ industry, as above defined, either as an 

employer or on h1s own behalf. 

(e) The term " signatory of the code ", as used herein, means 

any member of the industry who shall voluntarily agree in writing 

as prescribed in Article VI, Section (c) hereof. 

(f) The term" division", as used herein, refers to the several parts 

of the hair and jute felt industry which are (or may be) established. 

(g) The terms" President", "Act", and "Administrator", as used 

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

the National Industrial Recovery Act, and the Administrator of 

said Act. 

ARTICLE III--VVAGES 

(a) No employee shall be paid at less than the rate of thirty-five 

(35) cents per hour. 

(b) I-Iourly wage rates for those receiving more than the minimums herein prescribed shall be adjusted to preserve differentials 

existing on March 1, 1933. 

(c) This Article establishes a guaranteed minimum rate of pay, 

regardless of whether the employee is compensated on a time or piece 

work basis. 

ARTICLE IV-HOURS OF LABOR 

(a) No employee, except those in a managerial or executive capacity, who receives more than $35.00 per week shall be permitted to 

(1) 
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work in excess of 40 hours in any one week, provided that a ten percent additional allowance in hours may be permitted in the case of 

repair-shop crews, firemen, engineers, electricians, outside crews, 

watchmen, cleaners, hair washers, dryers, extractors, and balers. 

(b) The maximum hours fixed in the foregoing section shall not 

apply to any employee on emergency maintenance or emergency re- pair work involving breakdowns or protection of life or property. 

(c) Any emergency time shall be reported monthly to the N ationa! Control Committee hereinaf-ter provided. 

(d) The rate of pay for time in excess of forty ( 40) hours shall 

be one and one third (11/3 ) times the regular rate of pay. 

ARTICLE V-CHILD LABOR 

Employers in the hair and jute felt industry shall not employ 

any person under the age of sixteen years. 

ARTICLE Vl-ADl\IINISTTIATION 

(a) to effectuate further the policies of the Act, a National Control 

Committee is hereby designated to cooperate with the Administrator 

as a Planning and Fair Practice Agency for the Industry. This 

Committee shall consist of five ( 5) representatives of the industry 

elected by a fair method of selection, to be approved by the Administrator and up to three (3) members without vote may be appointed 

by the Administrator. Such agency may present to the Administrator recommendations for the modification of the provisions of this 

Code, which will tend to effectuate the operation thereof and the 

policies of the Act. Such recommendations, when approved by the 

Administrator, after such notice and hearing as he shall deem 

proper, shall have the same force and effect as if originally incorporated in and made a part of this Code. 

(b) Such agency 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 in tance or on complaint by any person affected, and to report the same to the AdminIstrator. 

(c) M:embers of the industry who are complying with the requirements of the Code and who agree in writing either individually, or 

through trade associations of which they are members, to abide by 

the requirements of the Code, and to pay their reasonable share of 

the expense of administration thereof shall be entitled to the benefits 

of the activities of the National Control Committee and to participate in the selection of the members thereof. 

(d) The reasonable share of the expense of administration of the 

Code to be borne by the signatories of the Code shall be determined 

by the National Control Committee, subject to review by the Administrator on the basis of volume of business, and/ or such other 

factors as may be deemed equitable to be taken into consideration. 

(e) vVith a view of keeping the President inform eel as to the 

observance or nonobservance of this Code of Fair Competition, 

and as to whether the industry is taking appropriate steps to effectuate the declared policy of the Act, members of the industry shall 
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furnish to the National Control Committee through its authorized 

accountant, in such form, and at such intervals as it may pre cribe, 

subject to the approval of the Administrator, duly certified reports 

containing such information, reasonably pertinent to the effectua- tion of the p11rposes of this Code, as may be required by the Administrator or by the National Control Committee subject to the approval 

of the Administrator. 

Such information or copies thereof shall be furni heel to the 

Administrator upon his request. 

Totals and subtotals only shall be published, and shall be furnished to all members of the industry alike. 

(f) In addition to the information required to be submitted to 

the National Control Committee, there shall be furnished to Government agencies such statistical information as the Administrator may 

deem necessary for the purposes recited in Section 3 (a) of the Act. 

(g) The National Control Committee shall require that all me'm~ 

hers of the industry file lists of prices and terms with the Secretary 

of the Hair and Jute Felt Manufacturers Association. Changes in 

price lists shall be with the Secretary at least forty-eight ( 48) hours 

before becoming effective. 

(h) The National Control Committee shall secure current information concernin~ the competition in domestic markets o:f imported 

hair and/or jute telt products, and if it shall find that such products 

are being imported into the United States in substantial quantities or 

increasing ratio to domestic production and on such terms or under 

such conditions as to render jneffective or seriously to endanger the 

maintenance of this Code, it shall complain to the President pursuant 

to the provisions of Section 3 (e) of the Act and petition for suitable 

restrictions on the importation of such hair andjor jute felt products. 

(i) Each trade or industrial association directly or indirectly participating in the selection or activities of the N atwnal Control Committee shall: (1) Impose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copies of its articles of 

association, bylaws, regulations, and any amendments when made 

thereto, together w1th such other information as to membership, organization, and activities as the Administrator may deem necessary 

to effectuate the purposes of the Act. 

(j) In order that the National Control Committee shall at all times 

be truly representative of the industry and in other respects comply 

with the provisions o.f the Act, the Administrator may provide such 

hearings as he may deem proper; and thereafter if he shall find that 

the National Control Committee is not truly representative or does 

not in other resp cts comply with the provisions of the Act, may 

require an appropriate modification in the method of selectio.n of the 

National Control Committee. 

ARTICLE VII-TRADE PRACTICES 

The following practices shall constitute unfair methods of competition for the industry, and are prohibited: 

(a) Sales below Oost.-The selling or offering for sale of hair 

and/or jute felt products at prices below cost of production, except: 

(1) to meet competition, not instigated directly or indirectly by: the 

party desiring to meet such competition, and (2) to meet competi-

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tion in violation of this rule concerning which he has made complaint to the National Control Committee or any authorized agency 

thereof, but only pending action thereon. This provision shall not 

be effective until the Administrator shall approve a method of cost 

accounting to be recommended by the National Control Committee. 

(b) Sales below Publi8hed Prices.-Selling at prices below or 

on terms more favorable than those filed with the National Control 

Comn1i ttee. 

(c) Sales of Nonstandard G1·ades or OlassificatiorvS.-The selling 

or offering for sale of nonstandard grades or classifications of hair 

and/or jute felt for the purpose of evasion of the above Section (b). 

Standards shall be established by the National Control Committee, 

subject to approval by the Administrator. This shall not be interpreted so as to prohibit the introduction or sale of any new types of 

hair and/or jute felt. 

(d) False llfarlcing or Branding.-The false mar:king or branding 

of any product of the industry which has the tendency to mislead 

or deceive customers or prospective customers, whether as to the 

grade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any product of the industry, or otherwise. 

(e) Secret Rebates.-The secret payment or allowance of rebates, 

refunds1 commissions, credits, or unearned discounts whether in the 

form ot money, or otherwise, or the secret extension to certain purchasers of special services or privileges not extended to all purchasers 

on like terms and conditions. 

(£) Advertising.-The granting to a customer of any advertising 

allowance of any nature or in any form. 

(g) Subsidies.-The splitting or otherwise sharing by salesmen 

or other employees of their commissions or compensation with any 

present or prospective customer or customers' employees. 

(h) Merchandising Standards-

(1) Weight of 111 erchandise.-To intentionally ship any customer 

merchandise which weighs substantially more or less than the average 

pl,lblished weight. A tolerance of 71j2% over or under the specified 

weight will be allowed, but this must not be by design. On all price 

lists, advertising matter, etc., the average weight of each product 

shall be given in one weight only, and not a range of weights. 

(2) Seconds.-To protect the public against misleading and defective merchandise, "seconds" of carpet and rug lining shall not be 

offered for sale. Seconds, as used herein, connotes merchandise of 

the same specification as regularly listed, which are sold at a concession because of defect. 

(3) Discontinued Lines.-Any member of the industry may offer 

up to 10,000 square yards per calendar year of discontinued merchandise below cost or published price list; provided he advises the 

Executive Secretary, who shall notify all signatories of the Code, 

the nature, quantity, and price of the merchandise thus offered. 

(i) Invoicings.-Fictitious invoicing of merchandise and the shipment of merchandise, which weighs substantially more or substan1tially less than the published weight. 

The omission from an invoice of any material item pertaining to 

the sale, such as allowance of overriding discount payable at some 

f-uture date. 
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. 

All goods shipped by a manufacturer to or for customers carried 

on his own books shall be fully invoiced in the name of the customer 

to whom or for whom the goods are shipped and by whom payment 

will be made to the manufacturer. No manufacturer shall invoice 

any customer for produtcs other than those actually shipped against 

the in voice. 

ARTICLE VIII-GENERAL PROVISIONS 

(a) No provisions of this Code shall be so applied as to promote 

monopolies or monopolistic practices or to eliminate, oppress, or 

discriminate against mall enterprises. 

(b) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from all interference restraint, or coercion of employers of 

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

in the self-organization or in other concerted activities for the purpose of collectiYe bargaining or other mutual aid or protection. 

(c) 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 

(d) Employers shall com ply with the maximum hours of labor 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President of the United States. (e) This Code and all 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 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 but without limitation to the right of the President to cancel 

or modify his approval of this Code or any conditions imposed by 

him upon his approval thereof. 

(f) 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 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 the other purposes and 

policies of Title I of the National Industrial Recovery Act consistent 

with the provisions hereof. 

(g) Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, 

or general working conditions than under this Code. 

(h) Each employer shall post in conspicuous places full copies of 

this Code. 

ARTICLE IX-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approYJ.l by the President. 

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