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NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

EMBROIDERY THREAD . AND 

SCALLOP CUTTING INDUSTRY 

AS SUBMITTED ON AUGUST 26, 1933 

REGISTRY No. 231-3-03 

The Code for the Embroidery Thread and Scallop-Cutting Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

CODE OF FAIR COMPETITION FOR THE EMBROIDERY 

THREAD & SCALLOP CUTTING INDUSTRY 

ARTICLE 1-THE INDUSTRY 

The Co-operative Embroidery Thread & Scallop Cutters' ssoriation 1s hereby declared to be the industrial asso ia tion truly r presentative of the Embroidery Thread & Scallop Cutters and others 

engaged in this industry, and a such, d di ated to the purpose of the 

ational Industrial Recover Act. 

Any concern engaged in such indu try shall be eligible to member- ship in said Association, subject to its acceptance of its proportionate 

share of the cost and respon ibility as well as the benefit of such 

membership. 

ARTICLE 2-DEFINITIO 

"Industry" shall in lude Embroidery Thread Splitting by machinery and/or by hand, Embroidery Thread Cutting by machinery 

and/or by hand, callop Cutting by machinery and /or by hand, lace 

cutting by machinery and/or by hand, lace making-up by machinery 

and/or by hana, making up of embroidered yard goods by machinery 

and/or by hand, cutting out of embroidery by exclusive hand process 

and Embroidery straight utting by machinery and/or by hand. 

"Concerns" shall include an individual, partnership, firm or cor- poration engaged in this industry (and shall include therein proprietors, partners, officers or directors, when lawfully representing a con- cern). 

"Act" shall include the ational Industry Recovery Act and ctll 

amendments and supplements thereto. 

"Service" shall include Thread-Cutting, Thread-Splitting, ScallopCutting, Lace-Cutting, Lace Making-up, embroider d yard-goods 

making up, straight-cutting of embroidery and any other work, 

labor or services done b any concern. 

"Association" shall mean the Co-operative Embroidery Thread & 

Scallop Cutters' Association, a corporation not for pecuniary profit, 

organized and existing under the la~ s of the State of ew Jerse . "Board of Trustees" shall mean the Board of Trustees of the Association. 

"By-Laws" shall mean the By-Laws of the Association. 

"Effective date" means five days after the code shall have been 

approved by the Pre ident of the United tates. 

"Employees ' shall in lude all un killed persons emplo ed in this 

industry and hall specifi ally ex lude supervisors, foremen, foreladies, office staff, chauffeurs, and watchmen. 

"Productive Machinery" hall ~n lude onl Thread-Cutting 

Machinery, Thread-SpUtting 1:achinery and Scallop-Cutting Machinery. 

8185-33 (1) 
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ARTICLE 3 

This code shall be in operation as to the whole industry in order to 

establish fair and adequate wages and working hours of labor, eliminate unfair trade practice, and promote cooperative action within the 

industry to the end of rehabilitating the same. 

ARTICLE 4 

(a) Any concern in the industry, which accepts its share of the cost 

and responsibility as well as the benefits of such participation may 

become a member of the Association. No initiation or entrance fee 

shall be charged, but there shall be dues, levied on such basis as may 

from time to time be fixed by the board of trustees thereof. 

(b) Within the Association each member concern which shall have 

paid its dues in accordance with the By-Laws shall be entitled to one 

vote as provided under Article 2, Section 3, of the By-Laws as follows: 

"Each and every member of the Association shall be entitled to but 

one vote on any question, such vote to be cast by the individual 

member, a member of the firm, an officer of the corporation, or the 

duly accredited representative of the above, as the case may be." 

ARTICLE 5 

(a) 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 by 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. 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to refrain 

from joining, organizing, or assisting a labor otganization of his own 

choosing. 

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

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President of the United States. 

(1) On and after the effective date employers in this industry shall 

operate on a schedule of hours for labor for their employees not in 

excess of 40 hours per week except that during the spring and fall 

seasons employers may operate an additional two hours per day, for 

5 days a week, for a period of 12 weeks in each season, but in no event 

shall any work be done on Saturday or Sunday or after 6:30 in the 

evening of any day. 

(2) Employees shall not be required to work more than -8 hours a 

day for 5 days a week except during the spring and fall seasons as 

above set forth (Article 5 (c)), when employees may be required to 

work 10 hours per day for .5 days per week, but in no event shall any 

employee be required to work on Saturday or Sunday. 

(3) The regular working hours during the months when 40 hours 

shall be the maximum hours of work per week shall be from 8 A.M. 

to 12 Noon and from 1 P.M. to 5 P.M. The regular working hours 

during the months when 50 hours shall be the maximum hours of 

work per week shall be from 7:30 A.M. to 12 Noon and from 1 P.M. 
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to 6:30 P.M. There shall be only one shift in any 24-hour period 

and all overtime work is expressly prohibited. 

(4) The Board of Trustees is hereby authorized by resolutions by 

them to be adopted, to designate the opening and/or closing of the 

Spring or Fall seasons and by resolutions by them to be adopted subject to the approval of the Administrator of the Act shall designate 

and control any changes in the hours of work for employees in this 

industry. 

(5) On and after the effective date en1ployees listed below shall be 

paid an hourly wage not less than the following: 

Thread Cutting and Thread Splitting Machine Operators______________ $0. 60 

Thread Cutters & Thread Splitters Machine Helpers__________________ . 35 

Scallop Cutting Machine Operators__________________________________ . 45 

Thread Splitters by hand__________________________________________ . 35 

Hand Cutters________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 30 

All unskilled female help including learners and apprentices___________ . 25 

(6) On and after the effective date employers in this industry shall 

not employ any person, under the age of 16 years. 

(7) On and after the effective date, employers of this industry shall 

be prohibited from placing work of any kind to be done at homes of 

employees, including cutting out embroidery, and/or home cutting, 

and/or lace cutting, and/or lace or embroidery making up or winding. 

Giving out home work of any kind to anyone is strictly prohibited. 

(8) The number of learners or apprentices in any one factory shall 

not exceed 10 percent of the total number of employees on the weekly 

payroll of that factory. Their wages shall be progressively increased 

so that their earnings shall conform to the minin1um wage scale at 

the end of one year of such employment. 

ARTICLE 6 

(a) No concern shall directly or indirectly, as proprietor, partner, 

stockholder, officer, director, employee or otherwise, so long as the 

act shall remain in effect, enlarge the floor space of its physical plant 

(except for non-productive purposes and then only with the consent 

of the board of trustees) nor install productive machinery unless the 

same is now installed in a plant belonging to a concern now or previously engaged in the industry and is bought with the approval of 

the board of trustees, provided that nothing herein contained shall 

prevent the repair or replacement of existing machinery or the improvement of processes within the plants of any concern if the machinery replaced shall be scrapped under the supervision of the association within three months from the date of its replacement. Permission to install additional productive machinery may be granted 

by a two-thirds vote of all members of the Association. 

(b) Effective from the final approval of this code by the President 

of the United States, no concern not now engaged in this industry 

shall operate any productive machinery unless it shall first have 

secured permission so to do from the administrator, following an 

investigation of such concern by the Board of Trustees, and a report 

as to whether or not such operation will tend to effectuate the said 

policy of the act. 
4 

ARTICLE 7 

(a) The board of trustees is hereby authorized, by resolution by 

them to be adopted, to secure, distribute, and exchange price information, and may require the filing with the Association of duplicate 

invoices by each concern, without limitation of power. 

(b) The board of trustees is hereby empowered to establish a committee of its own members and to employ such other persons as may 

seem to them fit and proper to accomplish the purpose hereof. 

(c) Upon the request or direction of the board of trustees, all concerns shall promptly forward and file with the Association such statistical data and information, including copies of duplicate invoices and 

any and all other data which in its judgment may be necessary adequately to inform all concPrns regarding market conditions and also 

any such data and information as may be required for the supervision 

and operation of the code of ethics. 

(d) The Association is hereby constituted the agency to secure, 

distribute and exchange such statistical data and information. 

(e) Effective on the final approval of this code by the President of 

the United States, the board of trustees is authorized to require each 

concern to file with the secretary a list of the prices thereafter to be 

quoted for each of the several services rendered by it. Concerns 

shall not quote or make prices other than those filed until five days 

after filing with the secretary a new list of prices. Any quotation of 

prices in violation of the provisions hereof (when effective) shall be 

deemed an unfair competitive practice, unless the board of trustees 

or the price committee thereof shall have approved such quotations 

in advance. 

ARTICLE 8 

The plant and books of accounts of all concerns, in this industry 

shall be open to inspection by one or more neutral, disinterested persons selected by the board of trustees, at such time and under such 

conditions as may be determined by resolutions to be adopted by the 

board of trustees from time to time. The board of trustees is hereby 

authorized with the approval of the President of the United States, 

hereafter to amend this code by the incorporation herein of the whole 

or any part of said resolution or resolutions. 

ARTICLE 9 

(a) Effective upon the final approval of this code by the President 

of the United States, the board of trustees is hereby authorized by 

resolution by them duly to be adopted, to install or cause to be 

installed throughout the industry in the plant of each concern, books 

and records of a uniform system of cost accounting which will result 

in obtaining by each concern and by the association the costs of 

production, exclusive of any allowance for depreciation or o·bsolescence. 

(b) Pending the completion of the installation of such a system of 

cost accounting throughout the industry, but only after such final 

approval by the Preside:p.t of the United States, the board of trustees 

is hereby authorized to fix basic costs exclusive of depreciation and 

obsolescence for each type of service rendered by any concern in the 

industry. 
5 

(c) No concern shall sell below cost, exclusive of depreciation and 

obsolescence as determined by the board of trustees, pursuant to 

resolution for the time being or by the cost accounting when installed 

or operating. 

ARTICLE 10 

Effective upon the final approval of this code by the President of 

the United States, the Board of Trustees, after receiving the advice 

and cooperation of the members of the association, is authorized and 

directed upon request of two thirds of the membership of the association, but not sooner than six: months after the effective date, except 

with the earlier approval of the President of the United States, in the 

exercise of their best judgment, to determine what shall be fair and 

reasonable. 

ARTICLE 11 

(a) All concerns engaged in the industry shall abide by a code of 

ethics hereafter to be adopted by the board of trustees to eliminate 

unfair competitive practices. Such board of trustees is hereby 

authorized, with the approval of the President of the United States, 

hereafter to amend this code of fair competition by the incorporation 

therein of the whole or any part of such code of ethics, or any amendment thereof which may be later adopted by such board. 

(b) Charges for each of the several services rendered by the industry: The said Board of Trustees thereafter shall have power from 

time to time to change the charges for any of the said several services. 

Such service charges once so determined and published shall constitute and truly represent the minimum charges effective in all 

transactions for each of the several services rendered by the industry. 

ARTICLE 12 

Effective upon the final approval of this code by the President of the 

United States, any person who shall knowingly violate or induce 

another to violate the code of fair competition or code of ethics of this 

or any other industry, or be an accessory to such violation, shall be 

guilty of an unfair competitive practice. 

ARTICLE 13 

Effective upon the final approval of this code by the President of the 

United States, all members of the association shall, by virtue of their 

membership, be deemed collectively to have been licensed to do 

business in this industry under the act from and after the effective 

date. All concerns not members of the association shall, promptly 

following the effective date, obtain and procure from the administrator a license, subject to the approval of the board of trustees, to 

engage or continue in business, which shall be conditioned upon the 

obligation of such concern to comply with each and all of the provisions 

of this code and the amendments thereof and supplements thereto. 
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ARTICLE 14 

Further to effectuate the policies of this act, the Board of Trustees 

as now constituted or as it may thereafter be constituted, in addition 

to the other powers herein specifically conferred, is hereby designated, 

from time to time, to present to the administrator recommendations, 

based upon conditions in the industry as they may develop, which will 

tend to effectuate the operations of the provisions of this code and the 

policies of this act, along the following lines: 

(a) Recommendations for the requirement by the administrator of 

licensing and registration of persons engaged in the industry not 

members of the association, to be made effective as speedily as can 

conveniently be done, to the end that the provisions of the code may 

become immediately operative. 

(b) Recommendations for the making of rules by the administrator 

as to practices by persons engaged in the industry, as to methods and 

conditions of trading, to prevent and eliminate unfair and destructive 

competitive prices and practices. 

(c) Recommendations for the requirement by the administrator of 

registration by concerns of their productive machinery. 

(d) Recommendations for dealing with any inequalities that may 

otherwise arise that may endanger the stability of the industry and/or 

production and employment. 

(e) Such recommendations, when approved by the administrator, 

shall have the same force and effect as any other provisions of this 

code. The Board of Trustees shall likewise cooperate with the 

administrator in making any and all investigations as to the changing 

and observance of any of the provisions of this code at its own instance 

or upon complaint of any concern in the industry. 

(f) The Board of Trustees shall investigate the matter or matters 

complained of and report its finding and recommendations to the 

administrator for appropriate disposition. 

ARTICLE 15 

Effective upon the final approval of this code by the President of 

the United States, the board of trustees is hereby authorized, by resolution by them to be duly adopted, to define, construe or interpret 

the provisions hereof and to promulgate any administrative measure 

intended to effectuate any of the foregoing provisions of this code and, 

with the approval of the President of the United States, may hereafter amend this code by the incorporation herein of the whole or any 

part of such resolution. 

ARTICLE 16 

The board of trustees hereafter may with the approval of the 

President of the United States amend or supplement this code by a 

two-thirds vote, provided that the incorporation herein of any resolution of the board of trustees pursuant to the provisions of articles 8 

and 11 may be authorized by majority vote of such board. 
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ARTICLE 17 

(a) Pending the final approval of this code by the President of the 

United States, the board of trustees shall not exercise the power 

vested in it by articles 6, 7, 8, and 11 hereof, except with the approval 

of the administrator. 

(b) Acting pursuant to authority, the undersigned representing 

in excess of 80 percent of the Embroidery Thread & Scallop Cutting 

Industry, hereby submit this code. 

THE Co-OPERATIVE EMBROIDERY THREAD & SCALLOP 

CUTTERS AssocIATION INCORPORATED, 

The Committee: 

By RUDOLPH GRAF, 

Representing United Thread Cutting Co., West New York, N .J. 

By MAYER KATZ, 

Representing Embroidery Thread Cutting Co., West New York, N.J. 

By EuGENE RusTERHOLz, Jr., 

Representing E. Rusterholz Thread Cutting Co., Union City, N.J. 

By FRED F. BuEssER, 

Representing Progressive Cutting Corp., Guttenberg, N.J. 

By VICTOR EDELMANN' 

Representing Solar Swiss Scallop Cutting Co., Union City, N.J. 

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