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Approvea t:oae No. 235 Registry No. L.99-1-13 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE PROCESSING 

INDUSTRY 

AS APPROVED ON JANUARY 30, 1934 

W E DO OUR PAR't 

•••• 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

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This publication is for sale by the Superintendent of Documents, Government 

Printing Offi.~e, Washington, D.C., and by district offices of the Bureau ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ARTl\llENT OF COl\1MERC1l 

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Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Cllamber 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, Mi ll.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

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Kansas City, Mo.: 1028 Ba ltimore Avenue. 

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Seattle, Wa. 11.: 809 Federal Office Building. 
Approved Code No. 235 

CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE PROCESSING INDUSTRY 

As Approved on January 30, 1934 

ORDER 

Approving Code of Fair Competition 

FOR THE 

TEXTILE PROCESSING 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 Textile Processing 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: 

No,v, 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 aliJ. respects with the 

pertinent 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. 

I--IuaH S. JOHNSON, 

Acl11iinistrato1· for I ndustrial Reco1Jery. 

Approval Recommended: 

A. D. VVHITESIDE, 

Division Administrator. 

,;v ASHI:N'GTON, D.C., 

J anit;ary 30, 1934. 

32792°--313-72-34 (539) 
The PRESIDENT, 

The White Howse. 

Srn: 

INTRODUCTION 

This is a report on the hearing 0£ the Code of Fair Competition 

for the Textile Processing I ndustry. 

The hearing was conducted in accordance with the provi ions of 

the National Industrial Recovery Act, in the Rose Room of the 

Washington Hotel in Washington, D.C., on November 15, 1933. 

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

in public and all statutory and regulatory requirements were com.-

plied 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 83.6 percent of the industry. 

EVIDENCE SlIBl\IITTED 

The industry consists of 208 firms with an invest ed capital of approximately $31,750,000. The volume of business for 1932 ·was $25,-

000,000 as compared with an aYerage for the past five years of approximately $39,000,000. It is estimated that the pay roll for 1932 

was $8,800,000 compared with an average pay roll of $13,000,000 for 

the past frve years. There were 7,758 employees on the pay roll on 

May 1, 1933. The e timated average number of employee during 

1929 -n~as 10,458. The industry is made up of a large nmnber of 

small cone rns and not dominated by a few out. tanding establishments. 

RESUME OF PROYI IONS OF THE CODE 

The Code provides for a minimum wage of $13.00 per week for 

forty hours of labor for employees for cotton and rayon yarn processing and $14.00 for 40 hours of labor for all other proce ing. For 

employees in the South the minimum rate of pay may be lower than 

the above by not to exceed two and one half cents per hour. vVith 

respect to commission dyeing and/ or finishing of hosiery proYision 

is made that the minimum wage for 40 hours of labor for each class 

of worker shall be that provided in this Code, or that proYiclecl in 

Sections 1 and 2 of Article V of the Code of Fair Competition for 

the Hosiery Industry, whicheYer, in any case, may be higher. Certain employees receiving $35.00 or more per week are excepted from 

the maximum of forty hours per week. Watchmen are limited to 

56 hours per week. Provision haYe been made to preYent the 

reduction of ,Yages for the shorter weeks. 

(540) 
541 

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 remoYal of obstructions to the free flow of inter-state and foreign 

('.Ommerce 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 among the trade 

groups, by inducing and maintaining united action of labor 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. ( cl) 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 reas9ns, the Code has been approved. 

Respectfully, 

JANUARY 30, 1934. 

HUGH S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR T'HE 

TEXTILE PROCESSING INDUSTRY 

To effectuate the policy of Title I of the National I ndustrial Recovery Act, the following provisions are established as a Code of F air 

Competition ,for the Textile PTocessing Industry and shall be binding upon every men1be.r thereof. 

ARTIQLE I-DEFINITIONS 

1. . The term "Te~tile Processing I n~1ustry " or "Industry " as used 

herein means ancl includes the foHowmg: 

(a) The commission bleaching and/ or dyeing of cotto11 and wool 

raw stock and worsted tops; 

(b) The co1nmission scouring, dyeing, bleaching, and/ or other 

proces ing of yarns made of wool and/or other animal fibres (not 

including silk), wool, and/ or other animal fibres (not including silk) 

in c0111bination with other fibres, cotton, rayon, and/or other synthetic fibres or con1binations thereof; but shall not include the commission scouring, dyeing, bleaching, and/or other processing of 

yarns made of rayon and/or other synthetic fibres or combinations 

thereof by persons who are mem.:bers of the Institute of Dyers and 

P1·inter ·. but such persons, as to uch rayon yarn proces ing, shall be 

governed as to competitive practices by a;ny code of fair practice 

to be approved for this industry; 

(c) The commission dyeing and/ or finishing of knitted textile 

fabrics· ' (cl) The co1111nission dyeing and/or finishing of ho iery ; provided, 

however, that any member of the Industry engaged in such dyeing 

and/ r finishing of hosiery, whether for his own account or for the 

account of another, shall also be governed by Article VIII of the 

Code of Fair Competition for the Hosiery lHdustry as to the 

merch~ndising and/ or marking of hosiery; 

( e) The commission mercerizing of cotton yarns; 

(f) The commission winding, warping, slashing, and/ or beaming 

of yarns made of cotton, wool, rayon, and/or other synthetic fibres 

or combinations thereof; 

(g) The commission dyeing and/or finishing of woolen and/ or 

worsted woven fabrics ; 

(h) The commission glazing of cotton yarns and/ or sewing thread 

and/or twine; 

( i) The novelty or fancy twisting of yarns of two or more ends 

made of wool andj.or other animal fibres, rayon, and/ or other synthetic fibres, and/or combinations thereof with other yarns, pro-

(542) 
543 

duced on twisting frame having two or more lines of controlled 

rollers, including the primary distribution thereof; but shall not 

incl_ude such novelty or fancy twisting of yarns as de cribecl herein 

made by persons who are Jnembers of the National Association o:f 

Wool 1\ianufacturers, but such persons as to such noYelty or fancy, 

twisting of ya-rns as described herein sh·all be governed as to competiti, e practices by the supplementary codes of fair practice to be 

approved for this Industry; 

(j) The dyeing, glazing, converting, and primary distribution -of 

glazed cotton yarns, not including sewing thread and/ or twine; 

(k) The processing and primary distribution of dyed and/or conYerted sales yarns 1nade of rayon and/ or 0ther synthetic fibres, .not 

including such yarns, natural or bleached, singles, with seven turns 

twist to the inch or less put up in skeins, spools, tubes, and/ or cones; 

(1) The couring, dyeing and/ or bleaching of sales yarns made 

of cotton, wool and/ or other animal fibres (not including silk) when 

so processed as yarns; provided, however, that provisions in this 

code governing labor and plant operations hall not apply to the 

processing of such sales yarns by spi..r1ners thereof. The tenn "sales 

yarns " as u eel herein shall mean yarns produced for . a.le to others 

as distinguished from yarns produced for conveTsion, by the producers thereof, into fabrics and/ or garments. 

2. The term " Guild " as used herein means the National Textile 

Processor Guild, Inc., a membership corp0ration organized under 

the laws of the State of New York. 

3. The term "Code Authority" as used herein 1neans the Textile 

Proce sing Code Authority as designated in Article III of this Code. 

4. 1'he term "Act" as used her:ein means the National Industrial 

Recovei-y Act approved by the President of the United States Jlme 

16th, 1933. 

5. The term '·employee" as used herein includes anyone engaged 

in the Industry in any capacity receiving co1npensn.tion for his 

services irrespecti.;e of the nature or method of payment o-f such 

compensation. 

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

such employee i compensated or employed. 

7. The term "Aclminis:trator" as used herein means the Administrator for Industrial Recovery duly appointed under the Act. 

8. The term ' South " as used herein means the territory of the 

foll wing States: Alabama, Arkansas, Florida, Georgia, Kentucky, 

Louisiana , l\1ississippi, North Carolina, Oklahoma, South Carolina, 

Tennes ee. Texas, Virginia, and 1iVest Virginia. 

A.nTICLE II-LABOR PROVISIONS 

1. ill axim:wn H ours.-Employees shall not be permitted to work 

in exce~s of forty hours per week, ·ubj ect to the flexible provision 

that becau e of the exigencie of the Industry it may be necessary 

to work employees more than forty hours per week on occa ion, provided that no such en1ployee shall work more than an average of 

forty hours per ,, ek during any twelve months and, provided 

further that no such employee shall be permitted to "ork in excess 

of forty hours for more than twenty weeks during any hvelve months 
544 

and not more than forty-eight-hours in any one week. Supervisors, 

receiving and shipping crews and truckmen may be employed with 

a tolerance cf four hours in excess of the standard maximum hours 

stated herein. Firemen and watchmen may be employed up to fiftysix hours per week. 

These restrictions do not apply to executives, supervisory, laboratory and office employees, engineers, and electricians who recei~e $35 

or more per week (but such employees who receive less than $35 per 

week shall be c;:ubject to the maximum hours provided herein), nor 

outside sales employees. 

The hours in each week during which any employee shall have 

worked in other establishments or in other industries, shall be included in the total number of hours such employee is permitted to 

work under this Code. 

2. llf.inimum, TVage.-(a) No employee shall be paid for cotton 

and rayon yarn processing less than thirty-two and one half cents per 

hour or thirteen dollars for forty hours of labor; and for all processing less than thirty-five cents per hour or fourteen dollars for 

forty hours of labor; provided, however, with respect to commission 

dyeing and/or finishing of hosiery, that the minimum wage for forty 

hours of labor for each class of worker shall be that provided in 

this paragraph, or that provided in Sections 1 and 2 of Article V 

of the Code of Fair Competition for the Hosiery Industry, whichever, in any case, may be higher. 

Employees in the South may be paid not more than two and one 

half cents per hour less than the minimum rates prescribed in the 

foregoing paragraph. 

The provisions for a minimum wage in this Code shall establish a 

guaranteed minimum rate of pay per hour of employment, regardless 

of whether the employees' compensation is otherwise based on a 

time rate or piecework performance. 

(b) No employee shall receive for forty hours of labor less compensation than he received or would have received as of May 1st, 

1933, for not exceeding fifty-two hours per week, and the wage differentials £or all operations shall be equitably readjusted. 

,vithin thirty (30) days after the effective date every member of 

the industry shall report to the Code Authority action taken by him 

with re pect to adjustment of wages above the 1ninimum. 

3. Minors.-No employee under sixteen years of age shall be employed in the Industry and no employee under eighteen years of age 

shall be employed in any wet processing operation. 

4. Machine Hours.-. Cone winding machines, reels, through tube 

cop machines and parallel tube winding machines used in the production of cotton mercerized yarn only shall he subject to the limitation 

of hours of operation provided for similar machinery in the Code 

of Fair Competition for the Cotton Textile Industry. 

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

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

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

in elf-organization or in other concerted activities :for the purpose 

of collective bargaining or other mutual aid or protection. 

6. No employee and no one seeking employment shall be required 
545 

as a condition of employment to join any company union or to refrain from joining, organizing or a isting a labor oraanization of 

his own choosing. 

7. Employers shall comply with the maxinrnm hou1·:::; of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

8. Within each State, members of the Industry shall comply with 

a1iy State laws, imposing more stringent requirements regulating 

licensing, the age, wages, or hours of labor of employees, than under 

this Code. 

9. Reclassification of Em,vloyees.-N o employer shall reclassify 

employees or duties of occupation performed or engage in any other 

subterfuge for the purpose of defeating the purposes or provisions 

of the Act or of this code. 

ARTICLE III-AD:M:INISTilATION 

1. (a) To effectuate further the policies of the Act, a Textile 

Processing Code Authority is hereby designated to cooperate with 

the Administrator as a Planning and Fair Practice Agency for the 

Industry. This Code Authority shall consist of seYen representatives of the Industry elected by a fair method of selection, to be 

approved by the Administrator, and up to three members, without 

vote and without cost to the Industry, appointed by the Administrator. Such agency may from time to time present to the Administrator recommendations based on conditions in the Industry as 

they may develop which will tend to effectuate the operation of the 

pro, isions of this Code and the policy of the Act; such recommendations when approved by the Administrator shall have the same force 

and effect as any other provision of this Code. 

(b) Such agency is also set up to cooperate with the Administrator in making inYestigations a:--- to the :functioning an 1 ob en·ance 

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. 

( c) 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, he may req 1ire an appropriate modification in the method of selection of the Code Authority. 

( <l) It shall be the duty of the Code Authority for thi Industry 

to de ignate representatives to act on a joint committee ,vith representatives of any other Code Authority of a related indu try having 

reciprocal provisions in its code to consider questions regarded by 

either Code Authority as of common concern with reference to the 

effectuation of the policies of the Act (including questions as to 

whether the operations of a given concern come within the jurisdiction of one or the other o.f the respective Codes), and to take such 

action as they may jointly agree to be appropriate subject to the veto 

of the Administrator. 
546 

( e) ,vith a view to keeping the President informed as to the 

observance or nonobservance of this Code of Fair Competition and 

a , to whether the Industry is taking appropriate steps to effectuate 

the (1eclared policy of the Act, each member of the Industry will 

furnish duly certified reports in such form as the Code Authority 

may require to the Code Authority hereinbefore provided, or to 

such agency or agencies as the Code Authority may designate. These 

r eports shall contain such information as the Code Authority, ,may 

r equire, subj ect to the approval of the Administrator. Such reports 

shall be deemed confidential and shall not be divulged except as 

part of general statistics for the Industry or a general part thereof 1 

except where a violation of the Code is suspected. 

( f) E very member of the Industry shall furnish to any government agency or agencies designated by the Administrator such statistical information as the Administrator may, from time to time, 

deem necessary for the purpose recited in Section 3 (a) of the National Industrial Recovery Act, and any reports and other information collected and compiled by a Code Authority as heretofore provided shall be transmitted to such government agencies as the 

Administrator may direct. 

2. All employers engaged in the Industry and coming under the 

operation of this Code shall bear their proportionate share of the 

expense of administrating this Code of Fair Competition. 

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. These 

funds shall be paid to the Code Authority or its duly constituted 

agency for that purpose. 

3. If the Administrator shall determine that any action of a code 

authority or any agency thereof is unfair or unjust or contrary to 

the public interest, the Administrator may require that such action 

be suspended for a period of not to exceed thirty days to afford 

an opportunity for investigation of the merits of such action and 

further consideration by such code authority or agency pending final 

action, which sh'lll be taken only upon approval by the Administrator. 

ARTICLE IV-GENERAL PROVISION s 

1. No provision of this Code shall be permitted to operate in such 

manner as to promote monopolies or monopolistic practices or to 

eliminate or oppress small enterprises or to discriminate against 

them. 

2. The labor provisions of this Code and of other applicable Codes 

shall be posted in each plant in the Industry, as directed by the Code 

Authority. 

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

subj ect to the right of the President in accordance with the provisions of Section 10 (b) of the Act from time to time to cancel or 

modify any order, approval, license, rule, or regulation, issued under 

Title I of said Act1 ~nd specifically 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. 
547 

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

included therein by the Act may, with the approval of the Administrator, 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 Administrator to prevent unfair 

competition in price and other unfair and destructive competitive 

pFactiees and to effectuate the other purposes and policies of Title I 

of the Act consistent with the provisions hereof. 

ARTICLE V-EFFECTIVE DATE 

This Code shall become effective the first Monday after date. 

Approved Code No. 235. 

Registry No. 299-1-13. 

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