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.nyynJV~U \..JOOe .N 0. f a7 Registry No. 299-2- 18 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

HAIR CLOTH 

MANUFACTURING INDUSTRY 

AS APPROVED ON DECEMBER 15, 1933 

BY 

PRESIDENT ROOSEVELT 

• 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, WasA.ington, D.C. - Price 5 ccn ts 

: 
This JlUb1ication is for sale by tne Superintendent of Documents, Government 

Printing .Office, Washington., D.C., and by {)is.trict offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COl\IMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, .Ala. : 257 Federal Building. 

Boston, i\Iass. : 1801 Customhouse. 

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

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

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

CleYeland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, .1\fich.: 2213 First National Bank Building. 

Houston. Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jack om·ille, Fla.: Chamber of Commerce Building. 

Kan as City, l\Io. : 1028 Balt:imore AYenue. 

Los Angele ·, Calif. : 1163 South Broadway. 

LouisYillc, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, l\Iinn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 40G East Plume Street. 

Philadelphia, Pa.: 933 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, l\Io.: 50G OliYe Street. 

San Franci ~co, Calif. : 310 Custom ~lOuse. 

Seattle, Wash. : 809 Federal Building. 
Approved Code No. 157 

CODE OF FAIR COMPETITION 

FOR THE 

HAIR CLOTH MANUFACTURING INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the N atio.nal Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Code 

of Fair Competition for the Hair Cloth• Manufacturing 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 

re pect 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: 

NO\V, THEREFORE, I , Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of 

the National Indu trial Recovery Act, approved June 16, 1933, and 

otherwise do adopt and approve the report, recommendations, and 

findinO's of the Administrator and do order that the said code of fair 

competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 

Huarr S. JoHNSON, 

AdministTCntor. 

THE \VHITE HousE 

December 15, 1933. 

2G707•----244-1G7----33 (119) 
-

DECEMBER 1, 1933. 

The PRESIDENT, 

The White House. 

INTRODUCTION 

SIR: This is a report on the hearing of the Code of Fair Competition for the Hair Cloth Manufacturing Industry. 

The hearing was conducted in accordance with the provisions 

of the National Industrial Recovery Act in the North Room of the 

Mayflower Hotel in Washington, D.C., on November 17, 1933. 

Every person who filed a request for an appearance was freely heard 

in public and all statutory and regulatory requirements were complied with. 

The Code which is attached was presented by duly qualified and 

authorized representatives of the above industry, complying with 

the statutory requirements, as representing 931;2 perCP.nt of the 

industry. 

EVIDENCE SUBMITTED 

The industry consists of eleven concerns, who, with the exception 

of one small plant, are 1nembers of the Association. The industry 

has invested capital of around two million dollars and in normal 

years has a sales volume of about four million dollars. It is estimated that the sales volun;e for 1933 will be about one million dollars. There are approximately 400 employees in the industry. The 

increase in the number of employees since July 1, 1933, has been 

about 10 percent and the increase in wages about 20 percent. 

RESU1\1E OF PROVISIONS OF THE CODE 

The Code provides for a miniinum wage of $17.00 per week for 

forty hours of labor. Shipping, receiving, storeromn employees, 

firement.-:.and engineers are permitted to work forty-four hours per 

week. ..t!.imployees on emergency maintenance or repair work will 

be paid one and one third times the normal rate for hours worked 

over forty-four per week. 

TVatchmen are to be employed in pairs to work 36 and 48 hours 

on alternate weeks, giving them an average week of forty-two hours. 

Provisions have been made to prevent stretch-outs, recla ification 

of employees, and the reduction of wages for the shorter week. 

Productive machinery in the indu try is limited to one shift of 

forty hours per week. 

FINDINGS 

I find that: 

(a) The Code complies in all respects with the pertinent provisions of Title I of the National Indu trial RecoYery Act, including 

(120) 
121 

without limitation subsection (a) of Section 7 and subsection (b) of 

Section 10 thereof. 

(b) The Hair Cloth Manufacturers Association is truly representative of the Hair Cloth Manufacturing Industry. The By-Laws of 

this association provide no inequitable restrictions to membership. 

(c) The Code is not designed to per1nit monopolies or to eliminate 

or oppress small enterprises, and will not operate to discriminate 

against them and will tend to effectuate the policy of Title I of the 

National Industrial Recovery Act. 

Accordingly, I hereby recommend the approval of the Code of 

Fair Competition for the Hair Cloth :Manufacturing Industry. 

Respectfully submitted, 

HuGHS. JoHNsoN, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

HAIR CLOTH MANUFACTURING 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 Hair Cloth Manufacturi~g 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 "industry" as used herein includes the manufacturing 

of hair-cloth products and the sale thereof by the manufacturer and 

such branches thereof as may from time to time be included under 

the provisions of this Code. 

The tenn "Hair Cloth Products" as used herein includes all fabrics woven with horse hair. 

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. 

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

any such employee is compensated or employed. 

The term "member of the industry" as used herein includes anyone engaged in the industry as abnve 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 Industrial Recovery Act, and the Administrator of 

Title I of said Act. 

ARTICLE III-HouRs 

1. No employee shall be permitted to work in excess of forty (40) 

hours in any one week or eight (8) hours in any twenty-four (24) 

hour period unless otherwise specified herein. 

2. The maximum hours fixed in the foregoing section shall not 

apply to: 

(a) Executives, office employee , supervisory staff, and outside 

salesmen who receive $35.00 per week or more. 

(122) 
123 

(b) Shipping, receiving, storeroom employees, firemen, and engineers who shall not work in excess of forty-four ( 44) hours per 

week. 

(c) Employees on emergency maintenance or breakdown or repair 

work and protection of life and property. In any such special case, 

a tolerance of 10% shall be a.llowad. Any hours worked in excess 

of forty-four ( 44) hours per week shall be paid for at the rate of 

time and one third, and reported to the Code Authority every month. 

(d) Watchmen shall be employed in pairs and shall not work more 

than thirty -six ( 36) and forty -eight ( 48) hours on alternate weeks, 

or an average of forty-two ( 42) hours per week. 

3. The maximum_ hours of labor for office employees receiving 

less than $35.00 per week shall be an average of forty ( 40) hours 

per week over a six ( 6) week period but in no week during such 

period more than forty -eight ( 48) hours. 

4. No employee shall be permitted to work for a total number of 

hours in excess of the number of hours nrescribed for each week 

and day, whether employed by one or more employers. 

5. Employers of this industry shall not operate productive machinery for more than one shift of forty ( 40) hours per week. 

ARTICLE rv--vv AGEs 

1. No employee shall be paid at less than the rate of $17.00 per 

week for forty ( 40) hours of work. 

2. No employee shall receive for forty ( 40) hours of labor less 

compensation than he received or would have received as of July 1, 

1933, for not exceeding fifty-four (54) hours per week. 

3. Apprentices and learners for a period not to exceed three (3) 

months shall be paid at the rate of not less than 80% of the minimum wage herein provided. The total number of apprentices and 

learners employed by any employer of the industry shall not exceed 

5% of the total number of employees employed by such member. 

4. This article establishes a minimum rate of pay, regardless o£ 

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

other basis. 

5. Female employees performing substantially the same work as 

male employees shall receive the same rates of pay as male employees. 

ARTICLE V -GENERAL L.ABOR PROYISIONS 

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

in the industry, nor anyone under eighteen (18) years of age at 

operations or occupations hazardous in nature or detrimental to 

health. The Code Authority shall submit to the Administrator before January 1, 1934, a list of such occupations which, upon his 

approval, shall be deemed hazardous in nature or detrimental to 

health within the meaning of this section. In any State an employer shall be deemed to have complied with the age provision 

if he shall have on file a certificate or pennit duly issued by the 

authority in such State empowered to issue employment or age certificates or permits, showing that the employee is of the required age. 
124 

2. Employees shall haYe the right to organize and bargain collectively through representatives of their own choosing, and shall 

be free from the interference or restraint, coercion of employers 

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

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

3. No employee and no one seeking employment shall be required 

as a condition· of employment to join any compa.ny union or to refrain from joining, organizing, or assisting a labor organization of 

his own choosing. 4. Employers shall comply with the maximum hours of labor, 

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

5. Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating the ages of employees, wages, hours of work, or he'alth, fire, 

or general working conditions under this Code. 

6. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

7. To prevent any improper speeding up of work (stretch-outs), 

no employee in the industry shall be required to do any work in 

excess of the practice as to the class of work of such employee 

prevailing on July 1, 1933, unless such increaSP is submitted to and 

approved by the Administrator. 

8. No member of the industry may knowingly employ as a learner 

or apprentice any employee who has previously been employed in 

any plant in this industry as a learner or apprentice for more than 

three (3) months. In case a learner or apprentice has not completed 

the three (3) months learning period, he may be employed as a 

learner or apprentice by any other employer for the balance of the 

learning period. 

9. Each employer shall post in conspicuous places on his premises 

full copies of this Code. 

ARTICLE VI-AnMINISTRA TION 

To further effectuate the policies of the Act, a Code Authority is 

hereby constituted to cooperate with the Administrator in the administration of this Code. 

1. Organization of Code Atttlwri.ty.-(a) The Code Authority 

shall consist of three (3) individuals, selected by the members of the 

Industry. in accordance with a fair method of selection, approved 

by the Administrator, and not more than three (3) additional members without vote (and without expense to the Industry) to represent the Administrator or such groups or interests as may be agreed 

upon. 

(b) 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) 

subm1t to the Administrator true copies of its arti les of association, 

bylaws, regulations and any amendments when made thereto, together with such other information ~ to membership, organization, 

and activitie as the Administrator m :t y deem nece ary to effectuate 

the purposes of the Act. · 
125 

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

representative of the indu try and in other respect. comply with the 

provisions of the Act, the Administrator may provide uch 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. 

2. The Code Authority shdl have the. following duties and powers 

to the extent permitted by the Act, subject to the right of the Administrator on review to disapprove any action taken by the Code 

Authority. 

(a) To admini ter and assist in the enforcement of this Code. 

(b) To interpret the provisions of this Code and issue such rules 

and regulations as may be necessary for the proper administration 

of the provisions of this Code. 

(c) To cooperate with the Administrator as a Planning and Fair 

Practice Agency. 

(d) To cooperate with the Administrator in making investigations 

as to the functioning and ob ·ervance of any provisions of this Code, 

at its own instance or on complaint by any person affected, and to 

report the same to the Administrator. 

(e) To receive and adjust complaints of the alleged violation of 

any of the provisions of this Code. 

(f) To receive from members of the industry, a.._ such times as 

may he prescribed, statistics covering number of employees, wage 

rates, employee. earnings, hours of work, and such other data as 

may be required by the Administrator. · 

(g) To obtain from the members of the Industry such other statistics and data as may be necessary for the proper administration 

of this Code, which information is to be collected by an impartial 

agent, acting in a judiciary capacity, with full protection to each 

memb€r as to the confidentia1 nature of the material collected. 

3. Any interested party shall have the right of appeal to the Administrator, under such rules and regulations as he may pre cribe, 

in respBct to any rule1 regulation, or other course of action issued 

or taken by the Code Authority. 

4. 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 rea onable share of the expenses of its administration. The 

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 to be taken into consideration. 

5. In addition to the information required to b€ submitted to the 

Code Authority, 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. 

ARTICLE VII-TRADE PRACTICES 

1. Every employer shall use a co t-accounting system which comforms to the principles of and is at least as detailed and complete 
126 

as the unifo rm and standard method of cost accounting to be prescribed by the Code Authority and approved by the · Administrator. 

Such cost-accounting system shall include as items of cost all direct 

expenses for labor and materials and a proper allowance for overhead figured according to plant utilization in the production of 

products covered by this Code. 

2. No member of the Industry shall sell or exchange any product 

of the Industry at a price lower than his cost determined in accordance with a uniform and standard method of costing to be adopted 

by the Association and approved by the Administrator. 

3. ~1embers of this Industry shall file with the Code Authority a 

schedule of prices, terms, discounts, and conditions of sale for the 

products of the inclu. try within thirty (30) days after the effecti,·e 

date of the Code. Such price lists may be revised only upon five 

( 5) clays' notice to the Code Authority. The Code Authority shall 

immediately send copies of all price lists so filed to all members of 

the Industry. 

4. Members of the Industry shall not sell their products at other 

prices or on other terms or conditions than set forth in their own 

price list. When any member of the Industry revises his price list, 

any other member of the Industry may revise his price list accordingly, to become effective on the same date as the revised price list 

first filed. Nothing in this paragraph shall be interpreted to permit 

the promulgation of list prices or the sale of goods at a price below 

the cost of production of the member of the industry issuing the list 

as provided in paragraphs one and two of this article. 

5. Obsolete merchandise and merchandise that must be sold in 

emergencies may be sold at other than the price list or cost of the 

member of the Industry, with the approval of the Code Authority. 

ARTICLE VIII-ExiSTING CoNTRACTS 

Where the cost of executing contracts entered into by this Industry prior to June 16, 1933, is increa ed by the application of the 

provisions of the National Industrial Recovery Act, it is equitable 

and promotive of the purposes of the Act that appropriate adjustments of such contracts to reflect such increased cost be arrived at 

by arbitral proceedings or otherwis , and the Code Authority 1s 

constituted the agency to sist in effecting such adjustment. 

ARTICLE IX-U NFAIR TnADE PRACTICES 

The following practices constitute unfair methmls of competition 

for members of the IndtLtry and are prohibited: 

1. 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, sub tance, 

chara.cter, nature, origin, size, finish, or preparation of any product 

of the industry, or otherwise. 

2. The making or causit1g or knowingly permitting to be made or 

published any false, materially inaccurate, or deceptive c::tatement hy 

wav of advertisement or otherwise, whether concerning the grade, 

quality, quantity, substance, character, nature, origin, size, finish, or 
127 

preparation of any product of the industry, or the credit terms, val. 

ues, policies, Dr services of any member of the industry, or otherwise, 

having the tendency or capacity to mislead or deceive customers or 

prospective customers. 

3. Directly or indirectly to give or permit to be given, or offer to 

' give, money or anything of v.a.lue to agents, employees, or representatives of customers or prospective customers, or to agents, employees, 

or representatives of competitors' customers or prospective custDmers, 

without the know ledge of their employers or principals, as an inducement to influence their employers or principals to purchase or contract to purchase from the makers of such gift or offer, or to influence 

such employers or principals to refrain from dealing or contracting 

to deal with competitors. 

4. Maliciously inducing or attempting to induce the breach of 

an existing oral or written contract between .a competitor and his 

customers or source of supply, or interfering with or obstructing 

the perfDrmance of any such contractual duties or services. 

5. No member of the industry shall secretly offer or otherwise 

make any payment or allowance of a rebate, refund, con1mission, 

credit, unearned discount, or excess allowance, whether in the form 

of money or otherwise, nor shall a member secretly, or otherwise, 

extend to any customer ~ny special service or privilege not extended 

to all customers of the same class. This provision shall not be interpreted to prohibit the adjustment of legitimate claims. 

6. The offering or giving of prizes, premiums, or gifts in connection with the sale of products, or as an inducement thereto, by any 

scheme which involves lottery, misrepresentations, or fraud. 

7. The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other false representations or by the false 

disparagement of the grade or quality of their goods. 

8. The imitation of trade marks, trade names, slogans, designs, 

styles, brands, or other marks of identification of competitors having 

the tendency and capacity to deceive purchasers or prospective purchasers. 

9. Canceling in whole or in part, or permitting the cancellation 

in whole o, in part, of any contract of sales of any product, except 

for a fair AOnsideration. 

10. l\1aking or giving to any purchaser of any product any guaranty or protection in any form against decline in the market price 

of such product. 

11. Stating in the invoice of any product as the date thereof a date 

later than the date of the shipment of such product, or including in 

any inYoice any product shipped on a date earlier than the date of 

such in voice. 

12. 1\tJ:aking any sale or contract of sale of any product under any 

description which does not fully describe such product in terms customarily used in the Industry. . 13. Rendering to any purchaser of any product in o.r 1n connection with the sale of such product any service, unless fa1r compensation for such service shall be paid by such purchaser. 

14. Shippina products on consignment except insofar as it is necessary to complete arrangements existing as of the effective date of the 

' 
128 

Code, which arrangPment shall be reported in writing to the Code 

Authority. No member of the Industry shall deliver the products 

thereof on con ignment except to an affiliated company of such member. An affiliated company shall mean a company in which a member of the Industry has a voting control through the record or equitable title of the voting stock thereof, or has control of such company in any other man11er. 

15. The making of false statements or reports, written or oral, required pursuant to any of the provisions of this Code or any resolution duly adopted by the Code Authority. 

ARTICLE X-MODIFICATION 

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

subject to the right of the Pt·esident, 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. 

2. After due notice and hearing this Code, except as to provisions 

required by the Act, may be modified on the basis of experience or 

changes in circumstances; such modifications shall be based on the 

recommendation of the Code Authority or of any interested party 

or group or on the Administrator's own initiative and shall become 

effective on approval by the President. 

ARTICLE XI-MoNOPOLIEs, ETc. 

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

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the second Monday after the 

date of its approval by the President. 

Approved Oode No. 157. 

Registry No. 299-2-18. 

0