Approved Code No. 254 Registry No. 1657-1-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

I FOR THE 

ATH~ETIC GOODS 

MANUFACTURING INDUSTRY 

AS APPROVED ON FEBRUARY 2, 1934 

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WE DO OUR PART 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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Approved Code No. 254 

CODE OF FAIR COMPETITION 

FOR THE 

ATHLETIC GOODS MANUFACTURING INDUSTRY 

As Approved on February 2, 1934 

ORDER 

APPROVING CoDE oF FAIR CoMPETITION FOR THE ATHLETIC GooDs 

MANUFACTURING INDUSTRY 

An application having been duly made pursuant t o 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 Athletic Goods Manufacturing 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 behal£ 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 all 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, provided that 

the continued participation of each of the trade associations participating in the selection or activities of the Code Authority after 

thirty days from the effective date of this Code shall be contingent 

upon their amending their respective constitutions and bylaws to 

the satisfaction of the Adn1inistrator; and provided further, that 

within ninety days I may direct that there be a further hearing on 

such of the provisions of said Code as I may designate, and that 

any order which I may make after such hearing shall have the 

effect of a condition on the approval of said Code. 

Approval recommended: 

GEO. L. BERRY, 

HuGHS. JoHNSON, 

Administrato1· for Industrial R ecovery. 

Division Adm.inist7·ator. 

WASHINGTON, D.C., 

Febrttary 12, 1934. 

37670°----313-1 6----34 (107) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The Wlvite House. 

Srn: A public hearing on the Code of Fair Competition for the 

Athletic Goods Manufacturing Industry was conducted in Washington on November 10, 1933, in accordance with the provisions of the 

National Industrial Recovery Act. This Code was submitted by the 

Athletic Goods Manufacturers Association, located in New York; 

the National Association of Golf Club Manufacturers, located in 

New York; the Golf Ball Manufacturers Association, located in 

Providence, Rhode Island; the Athletic Shoe Manufacturers Association, located in Cincinnati, Ohio; the Tennis Racket Manufacturers 

Association,. located in North Attleboro, :Massachusetts; and the 

Golf Bag Manufacturers Association, located in Chicago, Illinois. 

These Associations claim to reprec::ent approximately 87 percent of 

the Industry. 

After the Code wa submitted by the above-nam.ed Associations 

the Sporting Goods and Athletic ear Association signified their 

desire to come under the provisions of the Code for the Athletic 

Goods Manufacturing Industry. They were represented at the hearing and participated in the formulation of this Code. 

The maximum hours established in this Code are forty ( 40) per 

week for employees engaged in accounting, clerical, stenographic, or 

similar work, with a provision for sixteen ( 16) additional hours in 

any chosen thirteen (13) week period. Employees engaged in plant, 

factory, or mechanical work are not permitted to work in excess of 

1,040 hours in any six ( 6) month period, and are to be paid time 

and one third for all hours worked in excess of eight ( 8) hours in 

any one day or forty-four ( 44) in any one week, and that no such 

employee shall be permitted to work in excess of ten (10) hours in 

any one day or forty-eight ( 48) hour in any one week 

Exceptions as to hours are granted to employees in an executive, 

managerial, supervisory, or technical capacity, and their immediate 

assistants, who receive $35.00 per week or more, and to outside salesmen and emergency workers. Chau:ffe.ur , engineers, firemen, water 

tenders, oilers, or maintenance men are not permitted to work in 

excess of forty-eight (48) hours per week. The maximum hour for 

watchmen are fifty-six (56) per week. 

In 1929 this Industry operated approximately fifty (50) hours per 

week and in 1931 approximately forty-eight ( 48) hours per weE-k. 

During 1929 approximately 10,793 wage earner were employed in 

the Industry and in 1931 there were approximately 10,176 wage earners. It is. estimated that a forty-five ( 45) hour week would bring 

employment back to the 1929 level. Thi Industry hould be com- mended on the establishment of a forty (40) hour week, inasmuch 

(108) 
109 

as it will employ even more workers than were employed in 1929. 

On the basis of the forty ( 40) hour week approximately 2,035 workers 

will benefit through reemployment. · 

The Code establishes minima ranging from $14.00 to $15.00 per 

week according to locality, and provides for adjustment of wages 

above the minimum. The minimum wage :for employees paid on 

an hourly basis is thirty-five (35) cents per hour, with exceptions 

for workers between 16 and 21 years of age who are engaged in light 

work, such as messengers and junior clerks ; also for beginners and 

apprentices. The minimum for these classes of employees is twentyeight (28) cents per hour. Handicapped persons doing light work 

and whose earning capacity is limited may be employed at rates 

below the minimum, provided the employer obtains a certificate from 

the State authority designated by the United States Department of 

Labor. The number of these subminimum em.ployees is not to 

exceed 10 percent of the total number of a member's employees. 

Provision is made that female employees performing substantially 

the same work as male employees shall receive the same rate of pay. 

A wage differential of two and one half cents per hour is allowed 

for the Southern district. 

Home work is to be eliminated from this Industry, except that for 

a period of one year from the effective date of this Code low-grade 

baseballs and playground balls 1nay be sewn at home, provided that 

the compensation therefor is not less than the rate of pay in effect for 

such work on July 15, 1929, plus an increase of 20 percent. It 

is further provided that the Code Authority shall investigate the 

home work problem within ninety days after the effective date of 

this Code and report its findings to the Administrator. It would seem 

inadvisable to entirely eliminate home work at this time for the 

reason that it would not increase employment in the industry and 

would only serve to work a hardship on several small communities 

where this type of work is being done on an extensive scale. 

Wages in this Industry represented 22.5 percent of the value of 

products in 1929, as compared with 16.5 percent for all industries 

combined. In 1931 wages in this line of activity represented 22.8 

percent of the value of products, as compared with 17.5 percent for 

combined industries. 

Wage earners in 1931, on a 48-hour basis, were paid an average 

of 44.2 cents per hour, or $21.22 per week. · 

The increase in price to the purchaser should not represent more 

than 12 percent by the increased wage rates and shortened hours. 

If wages in this Industry are maintained at the 1929 hourly average, 

i.e., 46.8 cents per hour, and on the basis of a 40-hour week, the 

total pay roll would increase approximately three million dollars, or 

26.5 percent, over the 1931 pay roll total. 

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 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will pro-
110 

vide 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 con umption 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 

Sub ection (b) of Section 10 thereof; and that the applicant associations are trade associations truly representative of the aforesaid 

Industry; and that participation in the selection or activities of the 

Code Authority after thirty days from the effective date of this Code 

shall be contingent upon their amending their respective constitutions 

and bylaws to the satisfaction of the Administrator. (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 step·s of the economic process have not 

been deprived of the right to be heard prior to approval of said Code. 

This Industry has cooperated in a mo t satisfactory manner with 

th~ Administrator in. the l?repara.tion of this Code. From . the · evidence adduced dunng this heanng and from recommendatiOns 

and reports of the various Advisory Boards, it is believed that this 

Code in its present form as approved represents an affective, practical, equitable solution for this Industry and for these reasons this 

Code has been approved. 

Respectfully, 

HuGHS. JoHNSON, 

· A<ffministrator. 

FEBRUARY 2, 1934. 
CODE OF FAIR COl\tiPETITION FOR THE ATHLETIC 

GOODS l\fANUF ACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the N a.tional Industrial 

Recovery Act, this Code is established as a Code of Fair Competition for the Athletic Goods l\fanufacturing Industry and shall be 

the standard of fair competition for this Industry and binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Athletic Goods Manufacturing Industry ", as used 

herein, includes all manufacturers who produce andjor wholesalers 

who import athletic goods, but does not include retailers, whether 

or not they are also importers of athletic goods. 

2. The term ''Athletic Goods", as used herein, includes all the 

balls, implements, and equipment used in any or all of the athletic 

.games or sports enumerated below; excepting those used for the 

building and/ or maintenance of the courts, fields, grounds, and pools 

where such games are played : · 

(a) Golf. 

(b) Tennis, court tennis, badminton, racquets, squash racquets, 

squash tennis, handball. 

(c) Football, Basket Ball, Soccer, Rugby Football, Volley Ball, 

Water Polo, and all other athletic games using an inflated ball. 

(d) Baseball, including all variations thereof, played with a hard 

or soft ball and bat. 

(e) LaCrosse. 

(f) Polo and hockey, including all variations thereof, excepting 

skates. 

(g) Track and Field Athletics. 

(h) Boxing and "\V restling. 

( i) Archery. 

(j) Cri'Cket. 

(k) Felt and/or chenille emblems, letters, and pennants. The 

term also includes gymnasium and playground equipment, medicine 

balls, uniforms used for athletic purposes (except the juvenile sizes 

used as play suits); and other similar athletic wear manufactured 

exclusively for athletic purposes; and especially constructed track 

shoes and athletic shoes worn by players in the games of baseball 

and football onlv. 

3. The term "~Employee", as used herein, includes any person engaged in any phase of the industry, in any capacity, irrespective of 

the method of payment of his compensation, except a member of the 

industry. 

(111) 
112 

4. The term "employer", a u eel herein, includes anyone for 

whose benefit snch an employee is so engaged. 

5. The term "member of the industry" inclu de but without limitation any individual, partner hip, association, corporation, or other 

form of enterprise engaged in the industry, either as an employer 

or on his or its own behalf. 

6. The term "piecework basis ' includes all payment of wages 

by pieces or quantity produced, including all modifications of piecework basis such as the Bedeau System of Wage Payments. 

7. The term "wage" shall be defined as the rate of pay per hour 

to those whose service are paid on that basis. 

8. The term " salary " shall be defined as the amount paid per 

week to those who e services are paid on this basis. 

9. Population for the purpose of this Code shall be determined by 

reference to the 1930 Federal census. 

10. The term " southern district " as used herein, means the St ates 

of Virginia, "'Vest Virginia, North Carolina South Carolina, Geor- gia Alabama, Florida, Mississippi, Louisiana, Tennessee, Kentucky, 

Oklahoma, Arkansas, Texas, New :Mexico, and Arizona. The 

Northern district includes all other states and the District of 

Columbia. 

ARTICLE III- Ho-cRs 

SECTION 1. No employee engaged in accounting, clerical, stenographic, or similar work, shall be permitted to work in excess of forty 

( 40) hour per V~eek, except that any such employee may be pernlittecl to work sixteen (16) additional hours in any chosen consecu- tive thirteen (13) weeks' period but in no event more than fortyeight ( 48) hours in any one week. 

SEc. 2. No en1ployee engaged in any plant, factory, or mechanical 

work shall be permitted to work in excess of one thousand forty 

( 1,040) hours in any six ( 6) months' period, provided that time and 

one third hall be paid for all time worked in excess of eight ( 8) 

hours in any one clay, or 44 hours in any one week, and provided 

further, that no ~uch employee shall be permitted to work in excess 

of ten (10) hours in any one day nor in excess of forty-eight (48) 

hours in any one week. 

SEc. 3. The maximum hours specified in Sections 1 and 2 of 

thi · Article hall not apply to: 

(a) Employees in an executive, managerial, supervisory, or technical capa ·ity, and their immediate a sistants who receive a salary 

of $35.00 per week or more. 

(b) Outside salesmen. 

(c) Employees on e1nergency maintenance or emergency repair 

work ; no~· to employee· who e work may be directly affected by uch 

emergencies. 

(d) Chauffenr., engineers, firemen, water tenders, oilers, or maintenance 1nen, who shall not be permitted to work more than fortyeight ( 48) hours in any one week. 

(e) Employees engaged wholly or partially in performing the 

functions of wholesale distribution (excluding, however, those em- ployees engaged in manufacturing or production operation ) shall 
113 

not be permitted to work in excess of forty-eight ( -±8) hour in any 

one week. 

(f) No watchman shall be permitted to work in excess of fifty-six 

(56) hours in any one week. 

SEc. 4. No employee shall be permitted to "·ork for a total number 

of hours in excess of the num.ber of hours pre. cribecl herein, whether 

he be employed by one or more employers. 

ARTICLE IY-\VAGI~S AND S .AL\IUE 

SEcTION 1. No employee receiving a salary shall be paid less than 

$15.00 per week in any city of over 500,000 population, or in the im.-

mediate trade area of such city; nor less than $14.50 per week in 

any city of between 250,000 and 500,000 population, or in the immediate trade area of such city; nor less than $1-±.00 per week in 

any other locality. 

SEc. 2. No employee on a wage basis shall be paid le s than thirtyfive cents (35¢) per hour, except as follows: 

(a) Employees over sixteen (16) and less than twenty-one (21) 

years of age engaged in doing light work, such as the duties of messengers, junior clerks and the like, and beginners or apprentices who 

have had no previous experience or employment in the industry, shall 

be paid not less than twenty-eight cents (28¢) per hour. No 

employer shall knowingly employ or continue to employ any person 

as a beginner or apprentice who has worked in this industry for a 

period of ten (10) weeks, whether for one or more employer . 

(b) The minimum rates of compensation for all employees in the 

southern district may be less than those provided in this section by 

not to exceed two and one half cents (2Y2¢) per hour. 

(c) A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed on light work at a 

wage below the minimum established by this Code if the employer 

obtains from the State authority designated by the United State~ 

Department of Labor a certificate authorizing his employment at 

such wages and for such hours as shall be stated in the certificate. 

Each employer shall .file with the Code Authority a list of all such 

persons employed by him. 

SEc. 3. The number of employees of any member of the industry 

receiving wages as provided under Sections 2 (a) and 2 (c) of this 

Article shall not exceed ten percent (10% ) of the total number of 

such member's employees. 

SEc. 4. Female employees performing substantially the same work 

as n1ale employees shall receive the same rate of pay as male 

employees. 

SEc. 5. This Article establishes a minimum rate of pay which shall 

apply irrespective of whether an employee is compensated on a time 

rate, piece-work performance, or other basis. 

SEc. 6. No employer shall permit work of any kind to be performed 

in any home or hon1es or outside of a factory, workshop, or the like, 

except that for a period of one year from the effective date of this 

Code, low-grade baseballs made with compressed cottonseed or 

37G7o•----313-186----34----2 
114 

sweepings or compressed felt craps, and playground balls made 

from scrap felt or other similar cheap waste material may be sewed 

in a home or homes, provided, however, that the compensation therefor shall be not less than the rate of pay in effect on July 15, 1929, 

plus an increase of twenty percent (20%), and provided, further, 

that the rates of compensation to be paid for such work shall have 

the approval of the Code Authority and be uniform throughout the 

industry. 'Vithin ninety (90) days after the approval of this Code, 

the Code Authority shall make or cause to be made a study of the 

practicability of elimination of home work insofar as po sible and 

shall report its findings to the Administrator. 

SEc. 7. It is the policy of me1nbers of this industry to refrain fron1 

reducing compentation for employment which compensation was, 

prior to June 16, 1933~ in excess of the minimum wage herein set forth 

notwithstanding that the hours of work of such employment may be 

reduced and unless uch adjustments have already been made since 

June 16, 1933, all members of this industry shall endeavor to increase 

the pay of all employees in excess of the minimum wage, as herein set 

forth, by an equitable adjustment of all pay schedules. 

ARTICLE V.-GENERAL LABOR PROVISIONS 

SECTION 1. Child Labor.-No person under sixteen (16) years of 

age shall be employed in the industry. No person under eighteen 

(18) years of age shall be employed at operations or occupations 

which are hazardous in nature 1

0r dangerous to health. In any 

State an employer shall be deemed to have complied with this provision as to age if he shall have on file a certificate or permit duly 

signed by the authority in such State empowered to issue employment or age certificate or permits showing that the employee is 

of the required a~e. 

SEc. 2. PToviswns fr01n the Act.-In compliance with Section 

7 (a) of the Act it is provided : 

(a) That employees shall have the right to organize and bargain 

collectively through representatives of their own choo ing, and shall 

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

of labor, or their agents or in self-organization or in other concerted activities for the purpose of collective bargaining or other 

mutual aid or protection. 

(b) That no employee and no one eekin~ employment shall be 

:required as a condition of employment to jom any company union 

or to refrain from joining, organizing, or assisting a labor organiza- tion of his own choosing, and 

(c) That employers hall comply with the maximum hon1;s of 

labor, minimum rates of pay, and other conditions of employment 

approved or prescribed by the President. 

SEc. 3. R eclassification of Em,ployees.-N o employer shall reclassify employee or duties of occupations performed or engage in any 

other subterfuge for the purpose of defeating the purpo es or provi. ion of the Act or of this Code. 

SE . 4. Standards fo?' Safety and Iicalth.-Every employer hall 

make rea ·onable provi ·ion for the afety and h alth of his employees at the place and during the hours of their mployment. 

Approved Code No. 254 Registry No. 1657-1-04 

ERRATA SHEET 

CODE OF FAIR CO:MPETITION FOR ATHLETIC GOODS 

MANUFACTURING INDUSTRY 

AS APPROVED ON FEBRUARY 2, 1934 

Article VI, Section 1, fourth line" member" should be" Number." 

91457°----1244- 52----34 
115 

SEc. 5. State Laws.-N o pro vi ion in thi Code shall upersede 

any State or Federal law which imposes on employers more stringent 

requirements as to age of employees, wages, hours of work, or as to 

safety, health, sanitary, or general working conditions, than are 

imposed by this Code. 

SEc. 6. PosTING.-All employers shall post and keep posted com.-

plete copies of the wage and hour and general labor provisions of 

this Code in conspicuous places accessible to employees. 

ARTICLE VI-ORGANIZATION, PowERs, AND DuTIEs OF THE CoDE 

AUTHORITY 

SECTION 1. Organization and Oonstitution.-A Code Authority is 

hereby established to cooperate with the Administrator in administration of this Code and shall consist of twelve (12) members, or such 

other member as may be approved from time to time by the Administrator to be chosen by the Industry as hereinafter provided 

through a fair method of selection approved by the Administrator: 

Subsection (a) Two members of the Code Authority to be selected 

by the Athletic Goods Manufacturers Association; one member to 

be selected by the National Association of Golf Club Manufacturers; 

one member to be selected by the Golf Ball Manufacturers Association; one member to be selected by the Tennis Racket Manufacturers 

Association; one member to be selected by the Athletic Shoe Manufacturers Association; one member to be selected by the Golf Bag 

Manufacturers Association; one member to be selected by the 

Sporting Good and Athletic vVear Association; one member to be 

selected by the manufacturers of Tennis Balls; and not more than 

three members to be selected by those members of the industry who 

wish to participate in the activities of the Code Authority, who 

assent to and agree to abide by the provisions of this Code, but who 

are not members of any of the above mentioned groups. 1 

SEc. 2. Pending the selection of the Code Authority, as prescribed 

in the foregoing Section, the Administrator shall appoint a Committee to act as a temporary Code Authority for a period not to 

exceed sixty (60) days from the effective date of this Code. 

SEc. 3. The Administrator in his discretion may appoint not more 

than three (3) additional members without vote and without compensation from the industry, to serve for such period of time and to 

represent the Administrator or such group or groups as he may 

designate. 

SEc. 4. Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shalf impose no inequitable restrictions on membership, and shall 

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 

effectuate the purposes of the Act. 

SEc. 5. In order that the Code Authority shall at all times be 

truly representative of the industry and in other respects comply 

1 See paragraph 2 of Order approving thi Code. 
116 

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 Authority is not truly representative, or does not in other 

respects comply with the provisions of the Act, he may take such 

action as he may deem necessary under the circumstances. 

SEc. 6. Any member of the industry shall be eligible for membership in any trade association or organized group participating in the 

activities of the Code Authority, upon compliance with the provisions of the bylaws relating to membership, provided that any person applying for such membership shall, in addition to the payment 

of such dues as are imposed upon and paid by all other members, 

accept a reasonable and equitable share of the cost of code administration. Such members of the industry who do not choose to become 

members of any trade association or organized group may participate in the activities of the Code Authority as herein provided by 

paying to the Code Authority such proportionate part of the cost of 

code development and administration as the Code Authority, subject 

to the Administrator's approval, shall prescribe to be fair and 

equitable. 

SEc. 7. Powers and Duties.-The Code Authority shall have the 

following duties and powers to the extent permitted by the Act: 

(a) To administer the provisions of this Code and provide for the 

compliance of the Industry with the provisions of the Act. 

(b) To adopt bylaws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

(c) To cooperate with the Administrator in making investigations 

as to the functioning and observance of any provisions of this Code 

at its own instance or upon complaint by any person, and to report 

the same to the Administrator. · (d) To obtain from members of the industry such information 

and reports as are required for the administration of the Code and 

to provide for submission by members of such information and 

reports as the Administrator may deem necessary for the purposes 

recited in Section 3 (a) of the Act, which information and reports 

shall be submitted by members to such administrative and/or government agencies as the Administrator may designate; provided 

that nothing in this Code shall relieve any member of the industry of 

any existing obligations to furnish reports to any government agency. 

No individual reports shall be disclosed to any other member of the 

industry or any other party except to such governmental agencies 

as may be directed ·by the Administrator. 

(e) 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. 

(f) To make recommendations to the Administrator for the 

coordination of the administration of this Code with such other 

Codes, if any, as may be related . to this industry, with a view of 

permitting joint action upon matters of common interest. 

(g) To secure from members of the industry who assent to this 

Code and/or participate in the activities of the Code Authority 
117 

such proportionate payment of the reasonable expense of maintaining 

the Code Authority as may be determined by the ode Authority 

and approved by the Administrator. 

(h) To recomm.end to the Administrator further fair trade practice provisions to govern members of the industry in their relations 

with each other or with other industries and to recommend to the 

Administrator measures for industrial planning, including stabilization of employment. 

SEc. 8. Any action of the Code Authority or of any agency thereof, which the Administrator may deem unfair or improper, or 

contrary to the public interest, or which may be represented to him 

by any interested party, as unfair to any private interest, improper, 

or contrary to the public interest, may be suspended by the Administrator for such period of time, not to exceed thirty days, as he 

may deem necessary to afford an opportunity for investigation into 

such action. Further action by the Code Authority or of any agency 

thereof, may be held in abeyance by the Administrator pending his 

final determination of the matter under investigation. 

ARTICLE VII-UNFAIR TRADE PRACTICES 

The following practices enumerated in this Article VII shall 

constitute unfair methods of competition for all members of the 

industry and are prohibited. In adition thereto the practices 

listed in Schedules A, B, C, and D attached hereto and are made a 

part of this Code shal} apply, respectively, to the following divisions 

of the Industry: 

Schedule A shall apply only to manufacturers who produce andj or 

wholesalers who import balls, implements, and equipment used in 

any or all of the athletic games and sports enumerated below, except 

those used for the building and/ or maintenance of the courts, fields, 

grounds, and pools where such games are played. 

(a) Football, basket ball, soccer, rugby football, volley ball, water 

polo, and other athletic games using an inflated ball. 

(b) Baseball, including all the variations thereof, played with a 

hard or soft ball and bat. 

Schedule B shall apply only to manufacturers who produce and/ or 

wholesalers who import golf balls and golf clubs. 

Schedule C shall apply only to manufacturers who produce and/or 

whole alers who import tennis racquets and tenni frames, including 

racquets and frames for the following related games : Court tennis, 

badminton, racquets, squash racquets, and squash tennis. 

Schedule D shall apply only to manufacturer who produce and/or 

wholesalers who import especially constructed athletic shoes as defined in Article II, Section 2 of this Code. 

SEcTION 1. No member of the industry shall give, permit to be 

given, or offer to give, anything of Yalue 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 knowledge of such employer, principal, or party. Commercial bribery provisions shall not be construed to prohibit free 

and general distribution of articles commonly used for advertising 
118 

except so far as such articles are actually used for commercial bribery as hereinaboYe defined. 

SEc. 2. No member of the industry shall pay any money or make 

any gifts to athletic organizations, leagues, associations athlf>tes, 

or persons prominent in any of the various lines of sport to induce 

such athletic organizations, leagues, associations, athletes or persons 

to use, recommend, or adopt as "official" the athletic goods or equipment of such member, and then advertise that such athletic organizations, leagues, associations, athletes, or persons use, recormnend, 

or have adopted as "official" such athletic goods or equipment without disclosing that such organizations, leagues, associations, athletes, 

or persons were the recipients of money or gifts from such member, 

with the tendency to injuriously affect the business of competitors. 

SEc. 3. No member of the industry shall advertise that the winners 

of athletic competitions, or other individuals prominent in any of 

the various branches of athletics, use or have used the athletic goods 

or equipment of said member where such use is or has been induced 

by gifts or payments of money or is in any way obligatory, unless 

such advertisement shall also show that such winners or other individuals were the recipients of gifts or payments from such member or were obligated to use such athletic goods or equipment, where 

the tend·ency is to injuriously affect the business of competitors. 

SEc. 4. No member of the industry shall give anything of value 

to any person employed in a capacity involving special trust (such 

as instructor, director of athletics, or advisor in any particular line 

of sports) without the knowledge of his employers, upon the condition or understanding, expit.;sed or implied, that its goods be recommended or used by such person in preference to the athletic goods 

or equipment of a competitor or competitors of such member, with 

the tendency to injuriously affect the business of competitors; pro- vided, that nothing in this section shall prevent any member of the 

industry from selling its goods to any such person upon whatever 

terms it sees fit, but without any condition or understanding, ex~ 

pressed or implied, as to the recommendations or use of said athletic 

goods or equipment, and provided, further, that nothing in this section shall be construed to alter in any way the provisions of Section 

( 1) of this Article. 

SEc. 5. No mem.ber of the industry shall use the names of prominent athletes orr athletic goods or equipment used in the particular 

branch of athletics engaged in by said athletes when said athletes did 

not design or do not bona fide endorse or do not themselves bona fide 

use said athletic goods or equipment, and where from the use of said 

means there is a tendency and capacity to induce purchasers of said 

athletic goods or equipment to purchase said athletic goods or equipment in the belief that the same are bona fide used or endorsed, 

or were designed by said athletes, with the tendency to injuriously 

affect the business of competitors, provided that nothing contained 

herein shall be construed to deprive any person of any right which 

may be enjoyed under any existing law. 

SEc. 6. No member of the industry shall falsely advertise or fal ely 

represent that an athlete prominent in a particular line of sports or 

athletics, designed or uses or endorses certain athletic goods or equipment, with the tendency and capacity to deceive purchasers or pro-
"119 

spective purchasers and the tendency to injuriously affect the business 

of competitors. 

SEc. 7. No member of the industry shall lease, sell, or contract 

to sell athletic goods or equipment, whether patented or unpatented, 

for use, consumption, or resale within the United States, or fix a 

price charged therefor, or discount from, or rebate upon such price, 

on the condition, agreement, or understanding that the les ee or 

purchaser thereof shall not use or deal in the athletic goods or equipment of a competitor or competitors of the lessor or seller, where the 

effect of such lease, sale, or contract for sale, or such condition, 

agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce. 

SEc. 8. No member of the industry shall either directly or indirectly discriminate in price between different purchasers o£ commodities, where the effect of such discrimination may be to substantially 

lessen competition or tend to create a monopoly in any line of 

commerce; provided, that nothing herein contained shall prevent 

discrimination in price between purcha ers of the same class on 

account o£ differences in the grade, quality, or quantity of the commodity sold, or that makes only due allowances for difference in 

the cost of selling or transportation, or discrimination in price in 

the same or different communities made in good faith to meet competition; and provided further, that nothing herein contained shall 

prevent persons engaged in selling the products of this indu try 

in commerce from selecting their own cu tamer in bona fide 

transactions and not in restraint of trade. 

SEc. 9. No member of the industry shall u e on, or in any way 

in connection with the sale of, any o£ its athletic goods or equipment, the name, nickname, or initials of any athlete or person prominent in any line of sport when a competitor has previously acquired 

of the said athlete or person, and with his approval, the exclusive 

right and good will in and to said name, nickname, or initials for 

use on the same line of good , and where the effect of the use by 

the said member of the industry of the said name, nickname, or 

initials is to deceive or tend to deceive the purchasing public as to 

the source or make of the said line of goods, and where the tendency 

is to injuriously affect the bu ines of the competitor; provided that 

nothing contained herein shall be construed to deprive any per on 

of any right which may be enjoyed under any existing law. 

SEc. 10. No member of the industry shall maliciously induce or 

attempt to induce the breach of existing contracts between competitors and any athlete or person prominent in any line of sport 

relating to the use of said athletes' or persons' name, nickname, or 

initials, or maliciously interfere with or obstruct the performance 

of any such contractual duties or services with the purpose and effect 

of injuring or hampering such competitors in their businesses. SEc. 11. No member of the industry shall mark or brand merchandise or the wrappings or packages thereof, for the purpose, or with 

t.he intent, or having the effect of misleading or deceiving the purchaser or consumer in respect to the quality, size weight, or grade 

of the articles so marked or branded, or use materials or workmanship different or inferior to that claimed, stated, or implied in any 

mark or brand, label, wrapping, package, or advertise1nent. 
120 

SEc. 12. No member of the industry shall withhold from or insert 

in an invoice iacts which make the invoice a false record wholly or 

in part of the transaction represented on the face thereof and/or pay 

or allow secret rebates, refunds, credits, or unearned discounts, 

whether in the form of money or otherwise. 

SEc. 13. No member of the industry shall publish or circulate unjustified or unwarranted threats of legal proceedings which tend to 

harass or have the effect of harassing competitors or intimidating 

their customers. Failure to prosecute in due course shall be evidence 

that any such threat is unwarranted or unjustified. 

ARTICLE VIII-MoDIFICATION 

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

made subject to the right of the President, in accordance with the 

provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. 

SEc. 2. This Code, except as to provisions required by the Act, 

may be modified or amended on the basis of experience or changes 

in circumstances, such modifications or amendments 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 Actministr·ator, unless otherwise provided. 

ARTICLE IX-~IoNOPOLIEs, ETc. 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discrirninate ~gainst small enterprises. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 254. 

Registry No. 1657-1-04. 
SCHEDULES 

SCHEDULE A 

Additional unfair trade practice applicable only to manufacturers who produce andjor wholesalers who import ball~, implement~. and equipment used 

in any or all of the athletic games and sport:-,; enumerated below, except those 

used for the building and/or maintenance of the courts, field , grounds, and 

pools where such games are playc·d: 

(a) Football, basket ball, soccer, rugby football, Yolley ba 11, " ·a ter polo, and 

all other athletic games using an inflated ball. 

(b) Baseball, including all the variations thereof, played with a hard or soft 

ball and bat. 

ARTICLE I 

SECTION 1. No member of this divLion of the industry ~hall stamp the name 

"official" on other than top-grade conventional type of playground balls, footballs, soccer balls, or basket balls and volley balls, both inseam and outseam 

styles, and/or special balls provided that they are not sold at a lower price 

than his top-grade conventional type. 

Sw. 2. No member of this division of the Industry shall offer for ·ale as 

"seconds", "defective", or as inferior quality mercllanc1i e, any products of 

this division which are in fact not defective or inferior in any material respect. 

SEc. 3. No member of this division of the industry ~ball sell baseballs, playground balls, football!';, soccer balls, bas;ketballs, or volley balls unle s the ._aid 

balls are branded. with a name or other mark of identification. 

SEc. 4. No member of this division of the industry shall guarantee any of 

the products of this division except a to their freedom from defe ·t nffe ·ting 

the quality, quantity, grade, or construction thereof, or replace for any other 

cause, any such product which has been used. 

SEo. 5. No member of this division of the industry shall give trophies or 

other thing of value for the adoption or use of any merchandi~e by any t am, 

club, association, league, or educational institution, excepting only professional 

baseball leagues operating in organized baseball. 

SEc. 6. No member of this division of the industry r-: hall make any donation 

of balls or money to professional baseball leagues in exces!'; of a schedule 

of donations when such schedules shall be agreed upon from time to time by 

this division of the indu try and approved by the Administrator. 

SEc. 7. No member of this division of the industry shall stamp the names 

"Official League'', "National League", or ''American Leagu e ", on other 

than the manufacturer's fine t quality baseballs, mncl e of the best quali.ty 

wool yarn containing at least 95% \YOol. 

SEc. 8. No member of this division of the industry shall sell merchamli e 

on more favorable terms of credit than the following: 

(a) On current orders, 30 clays net, 2% ten days or 2% lOth proximo. 

(b) On advance spring orders shipped after November 1, and spring amples 

whenever sbipp d, March 31 dating, 2% if paid April lOth. 

(c) On adYance fall orders shipped after June 1st, and fall ample whenever shipped, September 30th dating, 2% if paid October lOth. 

(d) The rate of discount allowed on prepayment of invoice: . ball not ex eed 

6% per annum. 

(e) Past clue nccounts shall be subject to the legal rate of interest provided for by the laws of the State governing the operation of the contract 

of sale. 

(f) Nothing in this Section shall be deemed to apply to credit term. on 

foreign or export sale . SEc. 9. No member of this diYision of the industry shall knowingly imitate 

the trad mark , trade names, recognized trade numbers, slogans, or other 

murks of identification of competitors; provided that nothing contained herein 

shall be construed to deprive any person of any right which may be enjoyed 

under any existing law. 

SEc. 10. No consignment shall be made either directly or indirectly that has 

for its purpose and/or effect the taking or securing of new bu iness, and/ or 

that has for its purpose or effect the taking or keeping business away from a 

competitor. It is the intent of this section, and it hall be so construed, to 

permit a manufacturer by consignment to keep hi. own customers who lack 

working capital in business, or to salvage an account. 

(121) 
SCHEDULE B 

Additional unfair trade practices applicable only to manufacturers who produce and/or \Yholesalers who import golf balls and golf clubs. 

ARTICLE l 

I 

SECTION 1. No member of this division of the industry shall replace the original brand, name, or trade mark on used golf balls which have been remade, 

rebuilt, or renewed, or offer for sale used golf balls which have been remade, 

rebuilt, or renewed, without marking on each ball and on the cartons and 

boxes in which they are packed, one of the following words: " Remade ", 

"Rebuilt", or "Renewed". 

SEc. 2. No member of this division of the industry shall offer for sale any 

products of this division as "seconds", "defective", or as of inferior quality 

merchandise, which is in fact defective or inferior in any material respect. 

Su:c. 3. No member of this division of the industry shall sell golf balls unless 

said balls are branded with a name or other mark of identification. 

SEc. 4. No member of this division of the industry shall guarantee any of 

the products of this division, except as to their freedom from defects affecting 

the quality, quantity, grade, or construction thereof or replace for any cause 

any suc:h product which has been used. 

SEc. 5. No member of this division of the industry shall sell merchandise 

on more favorable terms of credit than the following: 

(a) On current orders, 30 days net, 2% ten days or 2% lOth proximo. 

(b) On advance spring orders shipped after November 1st and spring 

samples wheneYer shipped, March 31st dating, 2% if paid April lOth. 

(c) The rate of discount allowed on prepayment of invoices shall not exceed 

6% per annum. 

(d) Past due accounts shall be subject to the legal rate of interest provided 

for by any existing laws governing the operation of the contract of sale. 

(e) Nothing in this Section shall be deemed to apply to credit terms on 

foreign or export sales. 

SEc. 6. No member of this division of the industry shall knowingly imitate 

the trade marks, trade names, recognized trade numbers, slogans or other marks 

of identification of competitors; provided that nothing contained herein shall 

be construed to deprive any person of any right which may be enjoyed under 

any state or Federal law. 

SEc. 7. No consignment shall be made, either directly or indirectly, that 

has for its purpose and/or effe~t the taking or securing of new business and/or 

that has for its purpose or effect the taking or keeping business away from a 

competitor. It is the intent of this section and, it shall he so construed, to 

permit a manufacturer by consignment to keep his own customers who lack 

working capital in business or to salvage on account. 

SEC. 8. No member of this division of the industry shall make gifts of any 

kind to any golf player, either professional or amateur, nor charge such person 

a lower price for merchandise than the price charged other customers of th~> 

same class; provided any manufacturer may employ any golf player at an 

annual salary of not less than $1,500.00, each to play with the balls and/or 

clubs of said manufacturer in tournaments and/or exhibition play, and/or for 

the use of his name as a trade mark on golf clubs and/or golf balls. No deduction from said salary of $1,500.00 per year shall be made for failure to win any 

one or several tournaments, nor shall the said salary of $1,500.00 include any 

part of the prize money won by the said player. 

(122) 
Approved Code No. 254 Registry No. 1657-1-04 

ERRATA SHEET 

CODE OF FAIR COMPETITIO ... -

FOR THE 

ATHLETIC GOODS MFG. IND .. 

As Approved on February 2, 1934 

Schedule B, Section 2, the word "not" should be inserted between 

the words "fact " and " defective " so that the phrase reads " which is 

in fact not defective or inferior * * *" 

(ll 

95760 °--1B25- 29-34 

llr.S. GOVERNIIENT PRINTING OFFICI : IU4 

SCHEDULE C 

Additional unfair trade practices applicable only to manufacturers who 

produce and/or ''hole. alers who import tennis rackets and tennis frames 

including rackets and frame. for th e followin g related games: Court tennis' 

badminton, racquet , squash racquets, squa~h tenni ' 

ARTICLE 1 

SEcTION 1. No member of this clivi ion of the int1ustry shall offer for sale as 

seconds or discontinued models, any rackets or frames which are not bona fide 

second or discontinued models. Such bona fide second· or discontinued models 

shall be indelibly stamped vdth a steel tamp with the words "second" or 

"discontinued model" respectively. SEC. 2. No member of this division of the industry shall guarantee any product of this division except a to their quality, quantity, grade or construction, 

and freedom from defect . SEc. 3. No member of this divi ion of the industry shall sell merchandise on 

more favorable terms of credit than the follovring: 

(a) On current orders, 30 days net, 2% ten days, or 2.% 10th proximo. 

(b) On advance spring orders shipped after November 1st and spring sam- ple whenever shipped, March 31st dating. 2% if paid April 10th. 

(c) The rate of discount on prepayment of invoices shall not exceed 6% 

per annum. 

(d) Past due accounts shall be subject to the lega l rate of interest proyided for by the la"·s of the State governing the operation of the contract 

ot sale. 

(e) Nothing in this Section shall be cleemecl to apply to credit terms on 

foreign or export sales. 

SEc. 4. No consignment shall be ma(1e either directly or imlirectly, that 

has for its purpose and/or effect the taking or securing of new bw•dnes and/oT 

that has for its purpose or effect the taking or keeping busine:s away from a 

competitor. It is the intent of this section, and it shall be so con trued, to 

permit a manufacturer by consignment to keep his own customer: who lack 

working capital in business or to salvage an account. 

Sw. 5. No member of thi divi:ion of the induf.;try shall make gift· of any 

kind to any tennis player, court tennis player, badminton player, racquets 

player, squash racquets player, squa h tennis player, either profes ·ional or 

amateur, or charge such per ons a lon-er price for merchandi e than the price 

charged other customers of the same class. except that the fir t twenty men, 

twel-,e women, ix juniors, four boys, and four girls, rank tennis player as per 

the ranking li t of the preceding playing season of the U.S. Lawn Tennis As oci- ation, may be given free of charge tennis racket . tenni racket frame ·, and restringing serYice; and further provided, nny manufacturer may employ any tenni · player or tennis professional at an annual alary of not less than $1,000, each 

to play with the balls and/or tenni: rackets of aid manufacturer in tournaments and xhibition play, and/or for the U!';e of his name as a trade mark 

on tenni. racket and/or tennis frames. No deduction from said salary of 

$1,000 per year hall be made for failure to win any one or seYeral tournament , nor sha 11 the said . alary of $1.000 include any part of the prime money 

won by the :aid player. 

(123) 
111 11 1111 1111~ ~lil lil' ~flll~lfll[ll l~i 1111 11 11 11 3 1262 08584 3273 

SCHEDULED 

Additional unfair trade practices applicable only to manufacturers who produce and/or wholesalers who import especially constructed athletic shoes as 

defined in Article II, Section 2 of the Code for the Athletic Goods Manufacturing Industry. 

ARTICLE! I 

SEC'l"'GN 1. No member of this division of the industry shall guarantee merchandise, except as to freedom from defect, quality, grade or construction, or 

replace for any other cause merchandise which has been used. No replacement or repairs free of charge shall be rna de unles9 the merchandise is returned 

to the factory and found defectiYe. 

SEc. 2. No member of this division of the Industry shall give credit for 

the return of samples unless they are returned within thirty days from the 

date of invoice. 

SEo. 3. No member of this division of the Industry shall sell merchandisoe 

on more favorable terms of credit than the following: 

(a) On current orders, 30 days net, 2% ten days, or 2% 10th proximo. 

(b) On advance spring orders shipped after No...-ember 1, and spring samples 

whenever shipped, March 31st dating, 2% if paid April lOth. 

(c) On advance fall orders shipped after .Tune 1st and fall samples w·henever 

shipped, September 30th dating, 2% if paid October lOth. 

(d) The rate of discount allowed on prepayment of invoices not to exceed 

6o/o per annum. 

(e) Past due accounts shall be subject to the legal rate of interest provided 

for by the laws of the State governing the operation of the contract of sale. 

(f) Nothing in this Section shall be deemed to apply to credit terms on 

foreign or export sales. 

SEo. 4. No member of the industry shall knowingly imitate the trade marks, 

trade names, recognized trade numbers, slogans,. or other marks of idenification 

of competitors ; provided that nothing contained herein shall be construed to 

deprive any person of any right which may be enjoyed under any existing law. 

SEo. 5. No consignment shall be made, either directly or indirectly, that has 

for its purpose and/or effect the taking or securing of new business, and/or 

that has for its purpose or effect the taking or keeping business away from a 

competitor. It is the intent of this section, and it shall be so construed, to 

permit a manufacturer by consignment to keep his own customers, who lack 

working capital in business or to salvage an account. 

SEo. 6. No member of this division of the industry shall give trophies or 

other things of value for the adoption or use of any merchandise by any team, 

club, association, league, or educational institution. 

(124) 

0