Approved Code No. I-Amendment No. 1 Registry No . 299-25 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENTS TO 

CODE OF FAIR COMPETITION 

FOE THE 

COTTON TEXTILE INDUSTRY 

AS APPROVED ON NOVEMBER 8, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PAR't 

1. Executive Order 

2. Letter of Transmittal 

3. Amendments to Code 

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(II) 
EXECUTIVE ORDER 

MODIFICATIONS OF THE CODE OF FAIR COMPETITION FOR THE COTTON 

TEXTILE INDUSTRY 

An application having been duly made by the Cotton Textils 

Industry Committee under date of August 23, 1933, pursuant to and 

in full compliance with the provisions of title I of the National 

Industrial Recovery Act, approYed June 16, 1933, and pursuant to 

sections 9 and 10 of the Code of Fair Competition for the Cotton 

Textile Industry, approved July 9, 1933, for my approval of modifications of said Code of Fair Competition for the Cotton Textile 

Industry proposed in said application, and full hearings having been 

held thereon and the Administrator, under date of November 3, 1933, 

having rendered his report containing an analysis of said modifications together with his recommendations and findings with respect 

thereto, and the Administrator having found as set forth in said 

report, that the said modifications comply 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 said act have 

been met: 

NOvV, THEREFORE, I, Franklin D. Roosevelt, President of the 

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

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that said modifications 

of the Code of Fair Competition for the Cotton Textile Industry 

be, and they hereby are approved and made a part of said code. 

FRANKLIN D. ROOSEVELT. 

THE \VHrTE HousE, · Noveniber 8, 1933. 

Approval recommended: 

HUGH s. JOHNSON. 

(Ill) 

20481°-188-194-33 
The PRESIDENT, 

NOVEMBER 3, 1933. 

The 1'V hite House. 

INTRODUCTION 

Sm : This is a report on the Hearing of the modification of the 

Code of Fair Competition for the Cotton Textile Industry to include 

under the provisions of that Code the Cotton Thread Industry, the 

Yarn Merchandizing Industry, and the Cotton and Rayon Finishing Industry as proposed by the following groups and approved 

by the Cotton Textile Industry Committee : 

1. The Thread Institute. 

2. The National Association of Finishers of Textile Fabrics. 

3. The Mercerizers Association of America. 

This Hearing was held in the auditorium of the Department 

of Commerce Building in Washington, D.C., on October 9th, in 

accordance with the provisions of the National Industrial Recovery 

Act. Every person who filed an appearance was freely heard in 

public"and all statutory and regulatory requirements were complied 

with. 

Attached herewith is a copy of the modification which was presented by duly qualified and authorized representatives of the abovementioned groups, complying with the statutory requirements, as 

representing 78%, 75%, and 75% of their industries, respectively. 

EVIDENCE SUBMITTED 

It was brought out at the Hearing that almost immediately after 

the adoption of the Cotton Textile Code consideration was given by 

the Cotton and Rayon Finishers to the formulation of a S€parate code 

applicable to the finishing operations. An Executive Order was 

obtained applying, to the Finishing division of the industry, the 

ba_si? provisions of the cotton code with a slight modification as to 

mnumum wage. 

Consideration of the problems, however, led to the conclusion that 

the same line of reasoning which had resulted in the consolidation 

of cotton and rayon weaving indicated that the cotton and rayon 

finishing operations should not be segTegated from the fundamental 

cotton and rayon weaving part of the industry. 

~fills weaving cotton and rayon, or cotton alone, and finishing 

their own products are so numerous, and their finishing operations 

so closely interwoven with the other operations of these plants, that 

to attempt to disentangle and cut off those various operations in the 

same plan to place them under the authority of separate and divergent codes would be impracticable. · The finishinrr operations in these mills were already being conducted under the Cotton Textile Code and the logical course seemed 

(IV) 
V 

to all to be to then extend the operations of the con olidated cotton 

and rayon code to the cotton and rayon finishing operations of the 

job and corporation finishers as well as the mill finishers. 

It was further brought out that the operation of the manufacture 

of thread begins with the spinning of yarn, which is already under 

the Cotton Textile Code, and there is nejther logic nor practicability 

in arbitrarily attempting to cut in two what in integrated plants is 

a naturally connected operation and, therefore, a part of an operation 

under the Cotton Textile Code. 

Confusion has been avoided by the fact that the representatives of 

the Thread Industry applied for and secured an Executive Order 

making applicable the basic provisions of the Cotton Textile Code 

to thread operations. 

The next branch of the industry to which these amendments relate 

is the manufacturing of mercerized cotton yarn. This branch of the 

industry is already under the Cotton Textile Code and has complied 

with it from the start. 

The amendment which affects it relates to a definition of the productive machinery characteristic of this branch of the industry, so 

as to bring the operation of this machinery under the same 80-hour 

limitation which generally prevails in the industry. 

It was then shown that these amendments are directed toward 

rounding out the scope of the operations of what has now become 

a cotton and rayon textile code to cover the interdependent businesses of the manufacture of yarn and thread, and the weaving and 

finishing of cotton and rayon fabrics. It was also shown at the H earing that the part of the modification 

as originally submitted defining the Finishing subdivision of the 

Cotton Textile Industry was inequitable insofar as it was defined 

to include plunts finishrn~ all rayon materials exclusively which in 

actuality belonged to the bilk and Rayon Finishing Industry. Subsequent to the Hearing, this controversial point was cleared up by 

representatives of the cotton and rayon, and silk and rayon groups. 

RESUl\IE OF PROYISIONS OF THE l\IODIFICATION 

The maximum hours and minimum wages of the three indu -tries 

a pp lying for admission under the provisions of the Cotton Textile 

Code are the same as those in the Code itself, with the following 

exceptions : The Cotton and Rayon Finishers provide for a dollar 

a week higher minimum wage in the North and in the South than 

the other industries falling under the provisions of the Code. 

Machine hours for productive machinery are restricted to two 

shifts of forty hours each in all three branches of industry coming 

under the provisions of the Code, with the exception of the so-called 

Mill Finishers. For this group it is provided that the operating of 

finishing machinery, except printing machinery, for a sufficient number of hours to finish the fabrics woven on their own looms only, or 

cotton thread made on their own machinery only shall not be 

deemed a violation of the Code until any such finisi1ing operation 

exceeds two shifts of forty hours each be determined to be an unfair 

competitive practice. 
VI 

FINDINGS 

The Administration finds that: 

(a) The Code as amended complies in all respects with the pertinent provisions of Title I of the National Industrial Recovery Act, 

includin~ without limitation, subsection (a) of Section 7, and sub- section ) of Section 10 thereof. 

(b) T e applicant groups impose no inequitable restrictions on 

admission to membership therein, and are truly representative of 

their respective industries. 

( c) The provisions of the Code as amended are not designed to 

promote monopolies or to eliminate o,r oppress small enterprises and 

will not operate to discriminate against them, and will tend to 

effectuate the policy of Clauses one and two of the National Industrial Recovery Act. 

It is recommended, therefore, that the amendments to this Code 

be adopted immediately. 

Respectfully submitted. 

HUGH S. JOHNSON, 

A d1ninistrator. 
Al\'IENDMENTS TO CODE OF FAIR COMPETITION OF THE 

COTTON TEXTILE INDUSTRY 

(a) There shall be added to the definition of the term " Cotton 

Textile Industry " in Section I of said Code, the following : 

and/ or (3) the finishing of any of the foregoing fabrics, whether 

woven of cotton or rayon or other synthetic fibre or of a mixture 

of any of these fibres with any other fibres, pTovided that such 

finishing operations are carried on by ( u) concerns engaged in 

the weaving of cotton and/or rayon or other synthetic fibre, (b) 

concerns engaged solely in finishing cotton woven fabrics, ( c) 

concerns primarily equipped for and primarily engaged in finishing cotton woven fabrics who may also be engaged in finishing 

rayon and/or other synthetic fibre fabrics and/ or ( 4) the manufacture of sewing, crochet, embroidery, and/or darning cotton 

thread. 

so that the completed sentence shall read as follows: 

The term "Cotton Textile Industry" as used herein is defined 

to mean (1) the manufacture of cotton yarns and/or cotton 

woven fabrics, whether as a final process or as a part of a larger 

or further process, and/or (2) the manufacture of woven rayon 

fabrics, 18" or more in width, the warp of which is primarily 

rayon or other synthetic fibre yarn, whether finished or unfinished, and/or (3) the finishing of any of the foregoing fabrics, 

whether woven of cotton or rayon or other synthetic fibre or of a 

mixture of any of these fibres with an:y other fibres, provided 

that such finishing operations are earned on by (a) concerns 

engaged in the weaving of cotton and/ or rayon or other synthetic 

fibre, (b) concerns engaged olely in finishing cotton woven 

f abrics, ( c) concerns primarily equipped for and primarily engaged in finishing cotton woven fabrics who may also be engaged 

· in finishing rayon and/ or other synthetic fibre fabrics and/ or 

( 4) the manufacture of sewing, crochet, em.broidery, and/ or 

darning cotton thread. 

(b) There shall be added to the definition of "Productive machinery " in Section I of said Code, the following: 

(3) printing machines; (4) piece dyeing machines; (5) starching and/ or drying machines, operating on fabrics and not on 

raw stock or yarn or cotton thread where the same are used for 

the major operation in the production of plain bleached or 

unbleached fabrics which are not dyed or printed; (6) all machinery used for spooling, winding, reeling, or skeining; as a 

final process to produce cotton thread ready for sale as a finished 

article; (7) cone winding machines, reels, through tube cop 

(1) 
2 

machines and parallel tube winding machines used in the production of mercerized yarn only. 

so that the completed sentence shall read as follows: 

The term "productive machinery" as used herein is defined 

to mean (1) spinning spindles; (2) looms; (3) printing machines ; ( 4) piece dying machines ; ( 5) starching and/ or drying 

machines, operating on fabrics and not on raw stock or yarn or 

cotton thread where the same are used for the major operation in 

the production of plain bleached . or unbleached fabrics which 

are not dyed or printed; ( 6) all machinery used for spooling, 

winding, reeling, or skeining as a final process to produce cotton thread ready for sale as a finished article; (7) cone winding 

machines, reels, through tube cop machines and parallel tube 

winding machines used in the production of mercerized yarn 

only. 

( c) There shall be added to the definition of the term "effective 

date " in Section I of said Code, the following: 

provided tha.t the "effective date" of the provisions of this code 

which relate to the finishing and cotton thread manufacturing 

subdivisions of the industry shall be the next Monday after the 

approval of such provisions, except as heretofore approved and 

effective." 

so that the completed sentence shall read as follows: 

The term, " effective date " as used herein is defined to be July 

17, 1933, or if this code shall not have been approved by the 

President two weeks prior thereto, then the second Monday after 

such approval; Provided that the "effective date" of the provisions of this code which relate to the finishing and cotton 

thread manufacturing subdivisions of the industry shall be the 

next J\1onday after the approval of such provisions, except as 

heretofore approved and effective. 

( d) There shall be added to the definitions in Section I of said 

Code the following definitions: 

The term "job finishers" as used herein is defined to mean 

those finishers who do not purchase or own either the grey or the 

finished fabrics, but merely perform processing and finishing 

services under a contract with the owner of the goods, who 

usually is a "converter." 

The term " corporation finishers " as used herein is defined to 

mean those finishers who own or have a direct or indirect interest 

in grey and finished fabrics and who process and finish the goods 

for their own account and requirements, and/or for other 

accounts. 

The term " mill finishers " as used herein is defined to mean 

those mills which are engaged in the weaving o:f fabrics or production of cotton thread and engaged in auxiliary finishing 

operations solely on the fabrics or cotton thread so produced by 

them. 

The term "manufachU'ers of cotton thread" as used herein 

is defined to mean all producers of sewing, crochet, embroidery, 
3 

or darning cotton thread, and the term "produC€rs of cotton 

thread" as used herein is defined to mean all who operate 

machinery in the production of the said cotton threads or any 

of them, and all who purchase unfinished cotton thread and 

cause the further processing of such cotton thread for the purpose of selling the same as a finished article. 

( e) There shall be inserted at the end of Section II of said Code 

the following : 

but the employees in the operation of bleaching, dyeing, and 

printing equipment in finishing fabrics shall be paid at the rate 

of not les than $13 per week in the southern section of the industry and at the rate of not less than $14 per week in the northern 

section of the industry for 40 hours of labor. 

so that the completed Section II shall read as follows : 

II. On and after the effective date, the minimum wage that 

shall be paid by employers in the Cotton Textile Industry to 

any of their employees-except learners during a six weeks' 

apprenticeship, cleaners and outside employees-shall be at the 

rate of $12 per wee.k when employed in the southern section of 

the industry and at the rate of $13 per week when employed in 

the northern section for 40 hours of labor, but the employees in 

the operation of bleaching, dyeing, and printing equipment in 

finishing fabrics shall be paid a.t the rate of not less than $13 

per week in the southern section of the industry and at the rate 

of not less than $14 per week in the northern section of the 

industry for 40 hours of labor. 

( f) There shall be added to Section III of said Code, after the 

words " 40 hours per week," the following : 

Provided employees engaged in the operation of such machines 

as dyeing, bleaching, drying, and mercerizing machines, when 

used only as a part of continuous chemical proces es where the 

goods would be jeopardized by interruption, may, in such emergency, work more than 40 hours per week, but not in excess of 

48 hours per week. 

and ~he remainder of the Section following the words " 40 hours per 

week " shall be revised and amended so as to read as follows : 

employers in the Cotton Textile Industry shall not operat~ 

productive machinery for more than two shifts of 40 hours ea.ch 

per week; provided, however, that the operating of finishing 

machinery, except printing machinery, owned by mill finishers 

for a sufficient number of hours to finish the fabrics woven on 

their own looms only, or cotton thread made on their own 

machinery only shall not be deemed a violation of this section, 

until any such finishing opera.tion exceeding two shifts of 40 

hours each be determined to be an unfair competitive practice. 

so that the amended Section III shall read as follows: 

III. On and after the effective date, employers in the Cotton 

Textile Industry shall not operate on a schedule of hours of 

labor for their employees-except repair shop crews, engineers, 
4 

electricians, firemen, office and supervisory staff, shipping, 

watching and outside crews, and cleaners-in excess of 40 hours 

per week; Provided, employees engaged in the operation of such 

machines as dyeing, bleaching, drying, and mercerizing machines, when used only as a part of continuous chemical processes where the goods would be jeopardized by interruption, 

may, in such emergency, work more than 40 hours per week, but 

not in excess of 48 hours per week. Employers in the Cotton 

Textile Industry shall not operate productive machinery for 

more than two shifts of 40 hours each per week; provided, however, that the operating of finishing machinery, except printing 

machinery, owned by mill finishers for a sufficient number of 

hours to finish the fabrics woven on their own looms only or 

cotton thread made on their own machinery only shall not be 

deemed a violation of this section, until any such finishina 

operation exceeding two shifts of 40 hours each be determined 

to be an unfair competitive practice. 

(g) In the first sentence of Section VI of said Code the word 

"and" shall be omitted before the words "the National Rayon 

:Weavers Association", and there shall be inserted after those words 

the fallowing : 

the National Association of Finishers of Textile Fabrics, the 

Thread Institute, and the Mercerizers Association of America, 

so that the completed sentence shall read as follows: 

To further effectuate the policies of the Act, the Cotton 

Textile Industry Committee, the applicant herein, or such successor committee or committees as may hereafter be constituted by 

the action of the Cotton-Textile Institute, the Americari Cotton 

Manufacturers Association, the National Association of Cotton 

Manufacturers, the National Rayon Weavers Association, the 

N a.tional Association of Finishers of Textile Fabrics, the Thread 

Institute, and the Mercerizers Association of America, is set up 

to cooperate with the Administrator as a Planning and Fair 

Practice Agency for the Cotton Textile Industry. 

(h) In subdivision (2) of subsection 3 of Section VI of said Code, 

there shall be inserted after the word " spindl1

es " the following: 

or printing, dyeing, starching and/or drying machines operating on fabrics as the same are used for the major operation in 

the production and finishing of plain bleached and unbleached 

fabrics, or machinery used for spooling, winding, reeling, or 

skeining as a final process to produce cotton thread ready for 

sale as a finished article or cone winding machines, reels through 

tube cop machines and parallel tube winding machines used in 

the production of mercerized yarn only. 

so that the completed subsection 3 of Section VI shall' read as follows: 

3. Recommendations ( 1) for the requirement by the Administrator of registration by persons engaged in the Cotton Textile 

Industry of their productive machinery, (2) for the requirement 

by the Administrator that prior to the installation of additional 
5 

productive machinery by persons engaged or engao-ing m the 

Cotton Textile Industry, except for the replacement of a iniilar 

number of existing loom · or spindles or printing, dyeing. tarching, and/or drying machines operating on fabrics as the ame are 

used for the major operation in the production and finishing of 

plain bleached and unbleached fabrics, or machinery used for 

spooling, winding: reeling, or skeining as a final process to produce cotton thread ready :for sale as a finished article or cone 

winding machines, reels, through tube cop machines and parallel 

tube winding machines used in the production of mercerized yarn 

only, or to bring the operation of existing productive machinery 

into balance such persons shall secure certificates that such installation will be consistent with effectuating the policy of the 

National Industrial Recovery Act during the period of the emergency, and (3) for the gTanting or withholding by the Administrator of such certificates if so required by him. 

( i) There shall be added to Section VI of said Code a new paragraph which shall read as follows: 

It shall be the duty of such Agency acting as the Code 

Authority for this Industry to designate representatives to act 

on a joint committee with representatives of any other code 

authority of a related industry, 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 "hether 

the operations of a given concern come within the jurisdiction 

of one or the other of the respective Codes), and to take such 

action as they may jointly agree to be appropriate subject to 

the veto of the Administrator. 

(j) There shall be added to Section XIII of aid Code, immediately after the phrase " between the wage rates paid various classes 

of employees", the phrase "classified according to occupations" 

and the words "Paragraph 6" shall be changed to " Section YI", 

so that the completed Section ..lrIII shall read as :follows: 

XIII. The amount of differences existing prior to July 17, 

1~33, between the wage rates paid various classes of employees 

classified according to occupations ( receiving more than the 

established minimum wage) shall not be decreased-in no eYent, 

however, shall any employer pay any employee a wage rate 

which will yield a less wage for a workweek o:f 40 hours than 

such employee was receiving for the same class of work for 

the longer week o:f 48 hours or more prevailing prior to July 

17, 1933. It shall be a function of the Planning and Fair 

Practice Agency provided :for in Section VI o:f the Code to 

observe the operation o:f these provisions and recommend such 

further provisions as experience may indicate to be appropriate 

to e:ff ectuate their purposes. 

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