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3 1262 08486 7687 

Registry No. 299-1-20 

NATIONAL RECOVERY ADMINISTRATIOH 

CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF INDUSTRY 

AS APPROVED ON JANUARY 17, 1934 

WE DO OUR PARr 

UNITED STATES 

GOVERNMENT PRINTING OFFICI'.< 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - • • • - • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.O., and by district offices of the Bureau o! 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, .Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, .Mich.: 801 First National Bank Building. 

Houston, '.i'ex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 216 

CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF INDUSTRY 

As Approved on January 17, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF 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 Powder Puff Industry, and hearings having been duly held thereon and the annexed report on said Code, 

containing findings with respect thereto, 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 

I ertinent 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. 

HUGH 8. JOHNSON, 

Ad1ninistrato1· for Industrial Recovery. 

Approval Recommended: 

A. D. VVHITESIDE, 

Division Ad1ninist-rator. 

WASHINGTON, D.C., 

January 17, 1931,.. 

30479°----313-7----34 (273) 
The PRESIDENT, 

The White House. 

INTRODUCTION 

Sm : This is the report of the Administrator on the application 

for, and public hearing on, the Code of Fair Competition for the 

Powder Puff Industry, as proposed by the Powder Puff Manufacturers Association. The public hearing was conducted in Washington on December 4, 1933. Every person who requested an appearance was freely heard in accordance with statutory and regulatory 

requirements. 

There are 26 accredited manufacturers of powder puffs, 15 of 

which are members of the Association and account for approximately 85 percent of the total volume of the industry. Two manufacturer , not members of the Association, were present at the 

hearing. 

ECONOMICAL AND STATISTICAL MATERIAL 

The volume of sales in 1929, which was the peak year, was $6,000,-

000, and the total employment was 3,000 employees. The estimated 

volume of sales for 1933 is set at $4,500,000, and the number of 

employees at 2,000. With the operation of the President's Reemployment Agreement, employment has increased until it is now estimated 

to be only 10 percent under the 1929 level. Although it cannot be 

reasonably expected that the current employment figures will be 

increased a great deal, there is every reason to believe that there 

will be an appreciable increase in the purchasing power represented, 

because it was not uncommon formerly to find minimum wages of 

$5, $7, and $8 per week and as little as $3 per week. Estimates are 

that factory employees have worked an average of 48 hours per week 

throughout the period 1929 to 1933. 

RESUME OF CODE PROVISIONS 

The Code establishes 40 hours as the basic week for production a"P.d 

321j2 cents per hour as the minimum rate of pay. The principal 

exception to the basic 40-hour week is the specialized employee, 

termed the "cutter", upon whose output depends the employment 

for the entire industry, who is permitted to work 100 hours per year 

in addition to the maximum of 40 hours. 

The principal exception to the minimum-wage provision of thirty 

cents per hour is the learner, but the period of learning is limited to 

only two weeks. This provision seems justifiable because the industry 

is prohibiting "home work" which formerly accounted for a sub~ 

stantial part of the entire production. 

(274) 
275 

Trade practices are standard and are not in any respect objectionable in view of the chaotic competitive conditions which have 

obtained. 

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 amonlO' the trade groups, 

by inducing and maintaining united action of abor and management under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

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

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees and is not classified by me as a major industry. 

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

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid 

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 de igned 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 d/mini8t1·ator. 

JANUARY 17, 1934. 
CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF INDUSTRY 

ARTICLE I-PURPOSES 

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 Powder Puff Industry, and shall be the standard 

of fair competition for such Industry, and shall be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Powder Puff Industry " as used herein includes the 

manufacture andj or primary distribution of powder puffs and such 

branches or subdivisions thereof as may from time to time be included under the provisions of this Code. 

The term " employee " a 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. 

The term "employer" as used herein includes anyone by whom 

any such employee is compen. atecl or employed. 

The term "member of the Industry" includes anyone engaged in 

the Industry as above defined, either as an employer or on his own 

behalf. 

The terms "President" "Act" and "Administrator" as used ' ' - ' herein, shall mean, respectively, the President of the United States, 

the National Indu trial Recovery Act, and the Administrator of 

Title I of aid Act. 

ARTICLE III-HouRs 

1. No employee, except as provided in Section 2 of this Article, 

shall be permitted to work in exce s of 40 hours in any one week or 8 

hours in any twenty-four-hour period. 

2. Any male employee 18 years of age or over engaged in cutting 

material hall be permitted to work 100 hours per year in addition 

to the maximum hours e tablished in Section 1 of this Article, provided that in no event shall such additional hours exceed 10 in any 

one week or 2 in any twenty-four-hour period; and provided, further, 

that any employee working such additional hours shall be compensated at one and one-third times the normal rate. 

(276) 
277 

3. No employee shall be permitted to work more than 24 days in 

any twenty-eight day period. 

4. The provisions of this Article hall not apply to outside salesmen or to employees engaged in a managerial or executiYe capacity 

who earn not le s than $35.00 per week. 

ARTICLE IV-'iV AGES 

1. No employee hall be paid at less than the rate of 321j2¢ per hour, 

except that a learner shall be paid at not less than 24¢ per hour for 

a perio l of not over two weeks, provided, however, that no employee 

who has performed similar work for any employer in the Industry 

for a total of two weeks or more within the preceding two years 

shall be classed as a learner. 

2. This Article establishes a minimum rate of pay, regardless of 

whether an employee is compensated on a time-rate, piecework, or 

other basis. 

3. No employee whose full time weekly hours for the four weeks 

ended June 17, 1933, are reduced by the proYision of this Code by 

20% or less, shall haYe his or her full time weekly earnings reduced. 

No employee whose full time weekly hours are reduced by the proYisions of this Code, in excess of 20%, shall haYe his or her said 

earnings reduced by more than 50% of the amount calculated by 

multiplying the reduction in hours in excess of 20% by the hourly 

rate. 

4. A person whose earning capacity is limited because of age or 

physical, or mental handicap may be employed on light work nt a 

wage below the minimun1 established by this Code if the employer 

obtains from the State Authority designated by the United States 

Department of Labor a certificate authorizing his employment at such 

wages and for such hours as shall be stated in the certificate. Each 

employer shall file with the Code Authority a list of all such persons 

employed by him. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. Child Labor Provision..-No person under 16 years of aae hall 

be employed in the Indu try nor anyone under 18 years of age at 

operation or occupations hazardous in nature or detrim ntal to 

health. The Code Authority ~hall submit to the Admini b'ator before January 1, 1934, a li t of such occupations. In any State an 

employer shall be leemed to hav ·omplied with this proYi ion if he 

shall have on file a certificate or permit duly i u l by the authority 

in uch State empowered to i ue employment or aae certificates or 

permits, showing that the employee i of the requir cl age. 

2. Provi ions FTom Th Act.-( a) Employee hall haY th riaht 

to organize an l barbain ollectively; through representatiYes of their 

own choo ina, and hall be fre from the interference, re traint, or 

coercion of employer of labor, or th ir ag nt , in the de ignation 

of such repre. entatives or in elf-organization r in other con rted 

activities for the purpose of coil ctive bargainino or other mutual 

aid or protection. 
278 

(b) 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 

(c) Employers shall comply with the maximmn hours of labor, 

minimum rates of pay, and other conditions of employment upproved or prescribed by the President. 

3. R eclassification of E111ployees.-N o employer shall reclassify 

employees or duties or occupations performed for the purpose of 

defeating the provisions of the Act or of this Code. 

4. Standards For Safety and H ealth.-Every employer shall provide for the safety and health of his employees at the place and 

during the hours of their employment. Standards for safety and 

health shall be submitted by the Code Authority to the Administrator within six (6) months after the effective date of this Code. 

5. State Laws.-N o provisions in this Code shall supersede any 

law within any State which imposes more stringent requirements 

on employers as to age of employees, wages, hours of work, or as to 

safety, health, or sanitary conditions, or insurance, or fire grotection, 

or general working conditions, than are imposed by this Code. 

6. Posting.-Each employer shall post in conspicuous places in his 

plant, accessible to employees, copies of Articles III, IV, and V of 

this Code. 

7. Home lV ork.-All members of the Industry shall arrange to discontinue the system of home work by February 1, 1934. If, however, this provision works an unreasonable hardship on any employer, he may, upon appeal to the Code Authority, and subject to 

the approval of the Administrator, be allowed additional time up to 

a total of two months in which to con1.plete its abolishment. 

ARTICLE VI-ORGANIZATION, PowERs, AND DuTIES OF CoDE 

AUTHORITY ,_ 

ORGANIZATION 

1. To further effectuate the policies of the Act, the Code Authority 

is hereby constituted to administer this Code. 

2. The Code Authority shall consist of six individuals, or such 

other number as may be approved from time to time by the Administrator, to be selected as hereinafter set forth, and of such additional 

members, without vote, as the Administrator, in his discretion, may 

appoint to represent such groups or governmental agencies as he may 

designate. 

The Code Authority members shall be selected as follows: 

Any member of the Industry who has qualified as provided in 

Section 5 of this Article shall be entitled to one vote in the nomination and election of the members of the Code Authority. The proponents of the Code shall arrange for such nomination and election 

within 90 days of the effective date of this Code. In the interim, 

the regularly elected officers of the Powder Puff Manufacturers' Association shall fulfill the functions and discharge the duties of the 

Code Authority. 
279 

3. Each trade or industrial association directly or indirectly par ... 

ticipating in the selection or activities of the Code Authority shall 

(1) impose no inequitable restrictions 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 provide 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 selection of the Code Authority, or any 

sub-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 complying with the requirements of this Code and sustaining their reasonable share of the expense of preparation, presentation, and administration of this Code. Such reasonable share of the 

expenses of administration shall be determined by the Code Authority, subject to review by the Administrator, on the basis of volume 

of business and/ 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 exercising reasonable diligence in the conduct of his 

duties hereunder be liable to anyone for any action or omission to 

act under the Code, except for his own willful misfeasance or non ... 

feasance. 

POWERS AND DUTIES 

7. The Code Authority shall have the following powers and duties 

in addition to those elsewhere provided in this Code : 

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

and for the administration and enforcement of the Code, in accorllance with the powers herein granted, and to submit the arne to the 

Administrator for his approval together with true copi of any 

amendments or additions when made thereto, minute of meetings 

when held, and such other information as to it activities a the 

Admini trator may deem necessary to effect the purposes of the 

Act. 

(b) To obtain from members of the Indu try for u e of the ode 

Authority, for the Administrator in the admini tration and enforcement of the Code, and for the information of the Pre i 1 nt, reports 

based on periods of one, two, or four we ks, or multipl th r of, 

as soon as the necessary readju tment within the Indu try an be 

made and to give as istance to memb rs of the Indu try in improving methods, or in prescribing a uniform system of accounting and 
280 

reporting. All individual reports shall be kept confidential as to 

members of the Industry and only general summaries thereof may 

be published. 

(c) To receive complaints of violations of this Code, make investigations thereof, and bring to the attention of the Administrator 

recommendations and information relative thereto for such action 

as in his discretion the facts warrant. 

(d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein and to pay such trade associations and agencies the cost 

thereof, provided that nothing herein shall relieve the Code Authority of its duties or responsibilties under this Code and that such 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. 

(e) To coordinate the administration of this Code with such other 

Codes, if any, as may be related to the Industry, or any subdivision 

thereof, and to delegate to any other administrative authority, with 

the approval of the Administrator, such powers as will promote joint 

and harmonious action upon matters of common interest. 

(f) To secure an equitable and proportionate payment of the 

expenses of maintaining the Code Authority and its activities from 

members of the Industry. 

(g) To cooperate with the Administrator in regulating the use of 

the N.R.A. Code Insignia solely by those employers who have 

assented to, and are complying with, this Code. 

(h) To establish or designate an agency on Planning and Fajr 

Practice to which shall be added by the Administrator a representative instructed to safeguard the interests of the consumer, which 

shall cooperate with the Code Authority in developing fair interand intra-trade practices and industrial planning, including the 

regularization of employment and stabilization of employees for the 

Industry. Any such recommended practices being amendments to 

the Code must be approved by the President. 

(i) To initiate, consider, and make recommendations for the 

modification or amendment of this Code. 

(j) The Code Authority may appoint and remove and fix the 

compensation of such employees, accountants, attorneys, and officers 

as it shall deem necessary or proper for the purpose of administering 

the Code. 

(k) If it shall be represented to the Administrator by any interested party, or he shall determine upon his own motion, that any 

action of the Code Authority, or of any subdivision Code Authority, 

is unfair to any private interest or contrary to the public interest, 

the Administrator may require that such action be suspended for a 

period of not to exceed thirty (30) days to afford an opportunity for 

investigation of the merits of such complaint and further consideration by the Code Authority pending final action, to be taken only 

upon approval by the Administrator. 

GENERAL ADMINISTRATIVE PROVISION 

8. In addition to the information required to be submitted to the 

Code Authority as set forth in this Article there shall be furnished 
281 

to Government agencies such statistical information as the Administrator may deem necessary for the purpose r cited in Section 

3 (a) of the National Industrial Recovery Act. 

9. An appeal from any action by the Code Authority affecting the 

rights of any employer or employee in the Industry may be taken to 

the Administrator. 

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methode:: of competition 

for members of the Industry and are prohibited: 

1. False M arrking or Branding.-The false marking 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. 

2. Misrepresentation 01· False or Misleading Advertising.-The 

making or causing or knowingly permitting to be made or publi heel 

any false, materially inaccurate, or deceptive statement by way of 

advertisement or otherwise, whether concerning the grade, quality, 

quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Industry, or the credit terms, values, policies, or services of any member of the Industry or otherwi e, 

having the tendency or capacity to mislead or deceive customers or 

prospective customers. 

3. 001nmercial Bribery.-No member of the Industry shall give, 

permit to be given, or directly offer to give, anything of value for 

the purpose of influencing or rewarding the action of any employee, 

agent, or representative of another, in relation to the busine of 

the employer of such employee, the principal of such agent or the 

represented party, without the knowledge of such employer, principal, or party. Commercial bribery provisions shall not be con trued 

to prohibit free and general distribution of article commonly u eel 

for advertising except so far as such articles are actually u eel for 

commercial bribery as hereinabove defined. 

4. I nterf erence with Contractual Relations.-Maliciously inducing 

or attempting to induce the breach of an existing oral or written 

contract between a competitor and his customer or source of upply, 

or interfering with or obstructing the performance of any uch 

contractual duties or services. 

5. Secret R ebates.-The secret payment or allowance of rebate , refunds, conunissions, credits, or unearned discount whether in 

the form of money or otherwise, or the secret exten ion to c rtain 

purchasers of special services or privilege not extended to all r nrchasers on like terms and conditions. 

6. Defarmation.-The defamation of competitor. by fal ely imputing to them dishonorable conduct, inability to perform contract , questionable credit standing, or by other false repre nta tion.. or 

by the fal e eli parag m nt of the O'rade or qnalit. of their good . 7. Sales of econds.-The ale r offer for ale at a r clu eel price 

of rejec , factory second , or other defective merchandi e by any 

member of the Indu try in exc of 4 of hi total production. 

Any such sale hall be report d to the ole Authori y. ale in 

excess of 4% may be permitted by the o lc Authority upon a 
282 

showing that such restriction works an undue hardship upon a member of the Industry, but the granting of such permission must not 

allow such member an unfair competitive advantage nor work to 

the detriment of other members. 

8. Processing Materials Furnished by Others.-The sale of the 

service of processing materials furnished by others at less than the 

price arrived at by deducting the market cost of such materials, if 

purchased by the member concerned, from the price established by 

such member for the finished product. 

9. Sales Below Cost.-To sell or offer to sell any product below its 

cost, except to meet the competition o:f a member o:f the Industry 

whose cost is lower. Each member o:f the Industry shall determine 

cost in accordance with a cost accounting system capable of application by all members to be :formulated by the Code Authority and 

approved by the Administrator. 

10. Terrns of Sale.-Terms shall not exceed 2% discount for cash 

within 10 days from date o:f invoice, or 30 days net, with the privilege of giving E.O.M. (end of months) dating. 

ARTICLE VIII-MoDIFICATION 

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 o.f 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. 

2. This Code, except. as to provisions required by the Act, may 

be modified on the basis o:f experience or changes in circumstances, 

such modification to be based upon application to the Administrator and ,such notice and hearing as he shall specify, and to become 

effective on approval of the Administrator. 

ARTICLE IX-MONOPOLIES 

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-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price increases should be delayed and that, when made, the same .should, 

so :far as reasonably possible, be limited to actual increases in the 

seller's costs. 

ARTICLE XI-EFFECTIVE DATE 

This Code shall become effective on the tenth day after date. 

Approved Code No. 216. 

Registry No. 299-1-20. 

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