Approved Code No. 396 Registry No. 223-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MILK FILTERING MATERIALS 

AND THE DAIRY PRODUCTS COTTON 

WRAPPINGS INDUSTRY 

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AS APPROVED ON APRIL 19, 193-i 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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• 
Approved Code No. 396 

CODE OF FAIR COMPETITION 

FOR THE 

MILK FILTERING MATERIALS AND THE DAIRY 

PRODUCTS COTTON WRAPPINGS INDUSTRY 

As Approved on April 19, 1934 

ORDER 

ConE OF FAIR COMPETITION FOR THE MILK FILTERING MATERIALS AND 

THE DAIRY PRODUCTS COTTON °\'VRAPPINGS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions 0£ Title I 0£ the National Industrial 

Recovery Act, approved June 16, 1933, £or approval 0£ a Code of 

Fair Competition £or the Milk Filtering Materials and The Dairy 

Products Cotton Wrappings 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 0£ the President of the United 

States, I, Hugh S. Johnson, Administrator £or Industrial Recovery, 

pursuant to authority vested in me by Executive Orders 0£ the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes 0£ said Title 0£ said Act; and do hereby order that said Code 

0£ Fair Competition be and it is hereby approved. 

HuGH S. JOHNSON, 

Administrator for Industrial Reoovery. 

Approval recommended: 

A. D. w HITESIDE, 

Division Administrator. 

w ASHINGTON, D.C., 

April 19, 1934. 

53634°-482-103-34 (307) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Hearing on the Code of Fair Competition for the Milk Filtering Materials and Dairy Product Cotton 

Wrappings Industry, held in Room 3204, Department of Commerce 

Building, on February 1, 1934. The Code which is attached was 

presented by duly qualified and authorized representatives of the 

Industry, complying with statutory requirements, said to represent 

ninety-three percent or more in volume of the Industry. 

In accordance with the customary procedure every person who had 

filed a request for an appearance was freely heard in public, and all 

statutory and regulatory requirements were complied with. 

THE INDUSTRY 

The Industry comprises 17 concerns, having an investment in 1932 

of $400,000. In 1929 the Industry provided employment for 135 

employees. This figure has increased to about 150 workers in 1932. 

Aggregate annual sales have increased from $450,000. in 1929 to 

about $500,000. in 1932. 

PROVISIONS OF THE OODE 

The Code provides :for a minimum wage of 35 cents per hour. No 

hourly or weekly compensation shall be reduced because of any reductions in the number of hours o:f work per week and wage differentials existing prior to June 16, 1933, are to be maintained for all 

employees receiving $35 or less per week. 

Hours of work for all employees are limited to 40 hours per week 

and eight hours per day with the following exceptions: 

Employees engaged exclusively in a supervisory capacity receiving $35 per week or more a.nd outside salesmen are not limited 

as to hours, employees on emergency repair work a.re excepted from 

the maximum hour provisions but are to be paid time and one-third 

for all overtime work, watchmen are permitted to work not more 

than 56 hours per week. During any six weeks in any year employees are permitted to work 48 hours per week, but not more than 

eight hours per day, provided that at least time and one-third shall 

be paid :for all hours worked in excess of 40 hours per week. 

Representation on the Code Authority is provided :for all members of the Industry. There are no highly restrictive provisions. 

The Code provides for an open price as ociation in the Industry, 

but permits prices to be revised without a waiting period. 

(308) 
309 

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 on 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, includinO' 

removal of obstructions to the free flow of interstate and forei<Y~ 

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

by inducing and maintaining united action of labor and management 

under adequate governmental sanction and supervisions, by eliminating unfair competitive practices, b.y 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, S~1bsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly repre-.:entati ,,e of the afor~-

said Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these reasons, this Code of Fair Competition for the lVIilk 

Filtering Materials and the Dairy Products Cotton Wrappings 

Industry has been approved. 

Respectfully, 

APRIL 19, 1934. 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE MILK FILTERING MATERIALS AND THE DAIRY PRODUCTS COTTON 

WRAPPINGS 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 Milk Filtering Materials and the 

Dairy Products Cotton Wrappings Industry, and shall be the 

standard of fair competition for such Industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term " Milk Filtering Materials and Dairy Products Cotton 

Wrappings Industry" referred to hereinafter as the "Industry" 

means and includes the manufacture and the original sale of cotton 

and flannel discs, rolls and squares and flannel bags, tubes, pieces 

and rolls sold exclusively for use in the filtering of milk and the 

manufacture from woven piece goods and the original sale of 

cotton cheese bandages and other cotton goods sold exclusively for 

use in manufacturing, wrapping and packing dairy products. The 

term "Industry" shall not include the weaving of fabrics from 

which the above products are manufactured. 

2. The term " employee " as used herein includes anyone engaged 

jn the Indust~y in any capacity receiving compensation for his 

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

compensation. 

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

any such emploiee is compensated or employed. 

4. The term ' member of the Industry" includes anyone engaged 

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

own behalf. · 5. The terms "President" "Act", and "Administrator' as used 

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

Title I of the National Industrial Recovery Act, and the Administ.rator for Industrial Recovery. 

ARTICLE III-HouRS 

1. No employee shall work or be permitted to work in excess o:e 

40 hours per week or 8 hours in any 24 hour period except as 

follows: 

(a) Employees eng~.ged exclusively in a managerial or executive 

capacity who receive thirty-five dollars ($35.00) or more per week 

and outside salesmen. 

(b) During peak periods, not to exceed six ( 6) weeks in any one 

year, employees may work forty-eight ( 48) hours per week, but in 

(310) 
311 

no case shall they work more than eight (8) hours in any one day, 

provided, however, that at least time and one-third shall be paid 

for all hours worked in excess of forty ( 40) hours per week. 

( c) Employees on emergency maintenance or emergency repair 

work involving breakdowns or protection of life or property are 

excepted, but in any such special ca e a.t least one and one-third 

(11⁄2) times the normal rate shall be paid for hour worked in excess 

of the maximum hours herein provided. 

(d) Watchmen shall not work more than fifty-six (56) hours 

per week. 

2. No employee shall work more than six (6) days in any seven 

(7) day period. 

3. No employee shall work for a total number of hour · in excess 

of the number of hours prescribed for each week and day, whether 

employed by one or more employers. 

ARTICLE IY-"\VAGES 

1. No employee sha.11 be paid at less than the rate of thirty-five 

cents ( 35¢) per hour. 

2. Female employees performing substantially the same work as 

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

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

whether an employee is compen ·ated on a time-rate. piecework, or 

other basis. 

4. No hourly or weekly rates of compensation for employment now 

in excess of the minimum wages herein provided shall be reduced 

notwithstanding that the hours worked in such employment may 

be hereby reduced except, in such establishments as have been working since September 1, 1933 on a schedule of fewer maximum hours 

and h;gher minimum wages in which case the weekly earnings shall 

not be reduced. Wage differentials existing prior to June 16, 1933, 

shall at least be maintained for all employees receiving thirty-five 

($35.00) dollars or less per week. Each member of the Industry 

shall file with the Code Authority within forty-five days of the 

approval of this Code a report. showing that this provision is being 

complied with. 

ARTICLE V-GENERAL LABOR PROVISIONS 

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

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

be employed in operations or occupations which are hazardous in 

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

the Administrator w:thin ninety (90) days from the effective date 

a list of such operations and occupations. In any State an em- ployer shall be deemed to have complied with tli.is provision if he 

shall have on file a certificate or p~rmit duly i ·ued by the authority 

in such State empowered to issue employment or age certificates or 

permits, showing that the employee is of the required age. 

2. Employees shall have the right to organize and bargain collectively through representatives of ~heir own ch?o..:ing, and shall 

be free from the interference, restraint, or coerc10n of employers 

of labor, or their agents, in the designation of such representatives 
312 

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 company 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 appro~ 

or prescribed by the President. 

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

law which imposes more stringent requirements as to age of employees, wao-es, hours of work, or as to safety, health, sanitary or 

general working conditions, or insurance or fire protection, than are 

imposed by this Code. 

6. Employers shall not reclassify employees or duties of occupations performed by employees, or use any other subterfuge, so as 

to defeat the purposes of the Act. 

7. Each employer shall post in conspicuous places copies of Articles III, IV, and V of this Code. 

8. Every employer shall make reasonable provisions 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 for approval 

within six ( 6) months after the effective date of this Code. 

ARTICLE VI-AnMINISTRA TION 

There shall forthwith be constituted a Code Authority. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall include five ( 5) individuals, or 

such other number as may be approved from time to time by the 

Administrator, to be selected as hereinafter set forth, and such 

additional members without vote and without expense to the In--

dustry, not to exceed three, as the Administrator in his discretion 

may appoint to represent such groups or interests or such governmental agencies as he may designate. 

(b) Four members of the Code Authority shall be selected by the 

Milk Filtering Materials Institute from among its membership, and 

one member may be elected by members of the Industry who are not 

members of the Institute by a method approved or prescribed by the 

Administrator. 

( c) Each trade or industrial association directly or indirectly 

participating 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, bylaws 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 eff ectuate the purposes of the Act. 

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

representative of the Industry and in other respects comply with the 

provisions of the Act, the Administrator may prescribe such hearings 

as he may deem proper; and thereafter if he shall find that the Code 
313 

Authority is not truly representative or does not in other respects 

comply with the provisions of the .A.ct, may require an appropriate 

modification in the method of selection of the Code Authority. 

( e) Members of the Industry shall be entitled to participate in 

and share the benefits of the activities of the Code Authority by 

assenting to and complying with the requirements of this Code and 

sustaining their reasonable share of the expenses of its administration. The reasonable share of the expenses 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. 

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

to the extent permitted by the Act: 

(a) With a view to informing the President and the, Administrator as to the observance of this Code, and as to whether the Industry is taking appropriate steps to effectuate the declared policy 

of the Act, each member of the Industry shall furnish duly certified 

reports in such form as may be required by the Code Authority and 

approved by the Administrator. The Institute is hereby constituted 

the agency for the collection and receipt of such reports and for the 

forwarding of such reports to the Administrator. All such reports 

shall be held in strict confidence by the Institute, except when they 

shall be required by the Administrator or the Code Authority in 

connection with a violation of the provisions of this Code. 

(b) The Code Authority may recommend to the Administrator 

any action or measure deemed advisable, including further fair 

trade practice provisions to govern members of the Industry in their 

relations with each other or with other industries, measures for 

industrial planning, and stabilization of employment; and includin~ 

modifications of this Code which shall become effective as part hereot 

upon approval by the Administrator after such notice and hearing 

as he may specify. 

( c) The Code Authority is also set up to cooperate with the 

Administrator in making investigations as to the functioning and 

observance of any provisions of this Code, and its own instance or 

on com_plaint of any person affected, and to report the same to the 

Administrator, subject to the regulations of the Administrato~. 

( 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, provided that nothing herein shall relieve the Code Authority 

of its duties or responsibilities under this Code and that such trade 

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

with the provisions hereof. 

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

Code Authority, there shall be furnished such statistical information 

as the Administrator may deem neces,sary for the purposes recited in 

Section 3 (a) of the Act, to such Federal and State agencies as. the 

Administrator may designate; but nothing in this Code shall relieve 

any person of any existing obligation to furnish reports to government agencies. 

4. If the Administrator shall determine that any action of the 

Code Authority or any agency thereof may be unfair or unjust or 
314 

contrary to the public intere t, the Administrator may require that 

such action be suspended to afford an opportunity for investigation 

of the merit of such action and further consideration by the Code 

Authority or agency pendin<Y final action which hall not be effective 

unles the Admini trator approve or unles he . hall fail to disapprove after thirty days' notice to him of intention to proceed 

with. uch action in its original or modified form. 

ARTICLE VII-U ~ 1 F .c\. lR TRADE PRACTI 'ES 

The following practices con titute unfair methods of competition 

for members of the Industry and are prohibited: 

1. Secret Rebates. No member of the l ndustry shall secretly offer 

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

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

of money or otherwi ·e, nor shall a member of the Industry secretly 

offer or extend to any customer any special service or privilege 

not extended to all customers of the same class. 

2. Inaccurate Advertising. No member of the Industry shall 

publish adverti8ing (whether printed, radio, di play or of any other 

nature), which is inaccurate in any nrnterial particular, nor shall 

any member in any way mi Te present any goods ( including but 

without limitation its u e, trade-mark, grade, quality, quantity, 

origin, size, substance character, nature, finish, material, content or 

preparation) or credit terms, values policies, services, or the nature 

or form of the business conducted; and no member shall u e advertising or selling methods or credit terms which tend to deceive or 

mislead the customer or prospective cu tomer. 

3. Interference with Another's Contracts. No member of the Industry shall atte1npt to induce the breach of a.n existing contract 

between a competitor and his customer or source of supply, nor shall 

any such n1ember interfere with or obstruct the performance of such 

contractual duties or services. 

4. Commercial Bribery. No member of the Industry shall give, 

permit to be given, or directly or indirectly 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 

business of the employer of such employee, the principal of such 

agent or the represented party, without the kno-wleclge of uch employer, principal or party. This provis10n shall not be construed 

to prohibit free and general distribution of articles commonly u ed 

for adverti~ing except so far as such artjcles are actually used for 

commercial bribery as hereinabove defined. 

ARTICLE VIII 

1. ,vithin thirty (30) days after the effective date of this Code 

each member of the Indu try shall file with the Code Authority a 

checlule of hi own individual prices term discounts and conditions of sale for the products of the Indu try. Such price li t may 

be revi ·eel at any time and shall become effecti-ve on the date of mailing 

to th Code Authority by registered mail. The Code Authority shall 

at once send copies of all price list to all member of the Industry 

and .:uch price li ts shall be available to any int~rested party. 
315 

No member of the Industry shall sell or offer :for sale any product 

of the Industry below the prices, or on any other terms, discounts, 

and conditions of sale than in his own individual price list. 

ARTICLE IX 

No provision of this Code shall be interpreted or applied in such 

manner as to promote or permit monopolies or monopolistic practices, or to eliminate or oppress small enterprises, or to discriminate 

against them. 

ARTICLE X-~10DIFICATION 

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

subject to the right of the Pre ident, in accordance with the provisions of sub-section (b) of Section 10 of the Act, from time to time 

to cancel or modify any order, approval, license, rule, or regulations 

issued under Title I of said Act and specifically, but without limitation1 to the right of the President to cancel or modify his approval 

of tnis 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 of 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 XI 

This Code shall become effective the eleventh day after the date on 

which it shall have been approved. 

Approved Code No. 396. 

Registry No. 223-02. 

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UNIVERSITY OF FLORIDA 

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