V'

Approved Code No. 259 Registry No. 233-02

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

HAT MANUFACTURING

INDUSTRY

AS APPROVED ON FEBRUARY 5, 1934

MEMBER

U.S.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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Approved Code No. 259

CODE OF FAIR COMPETITION

FOR THE

HAT MANUFACTURING INDUSTRY

As Approved on February 5, 1934

ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE HAT MANUFACTURING

INDUSTRY

An application having been duly made pursuant to and in full

compliance with the provisions of Title I of the National Industrial

Recovery Act, approved June 16, 1933, for approval of a Code of

Fair Competition for the Hat Manufacturing Industry, and hearings

having been duly held thereon and the annexed report on said Code,

containing findings with respect thereto, having been ma(le and

directed to the President:

NOW, THEREFORE, on behalf of the President of the United

States, I, Hugh S. Johnson, Administrator for Industrial Recovery,

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in 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, however, that

the provisions of Article V, Section 6, insofar as they prescribe a

waiting period between the filing with the Hat Institute, Incorporated (i. e. actual receipt by the Hat Institute, Incorporated) and

the effective date of revised price lists or revised terms and conditions of sale be and they are hereby stayed pending my further

notice.

Hucai S. JoHNsoN,

A dinbiistrator for Indwutrial Recovery.

Approval recommended:

A. D. WIITrESIDE,

Divbiion Administrator.

WASHINGTON, D.C.,

February 5, 1(8

827910--313-73-- 34 (187)
REPORT TO THE PRESIDENT

The PRESIDENT,

Th Wite Hwoue.

SIR: The Code of Fair Competition for the Hat Industry has

been approved by the Hat Institute, Inc., and is recommended for

Executive approval. The Hat Institute is an association of manufacturers represeiiting approximately 90 percent of the combined

productive capacity in the various branches of the hat industry. These branches are: (1) traw hats, including harvest hats: (2) silk

M' opera hats; : (3) fur-felt hats for men or boys, either new, secondhal1. or miade-ov(er used hats; (4) fur-felt hat bodies for men's

:I11d women's hat>: (5) wool-felt hat bodies for men's and women's

A proposed Code o Fair Competition for this industry was pre-

'ented by the Hat In.stitute on July 31, 1933. Following a number

of conferenie'. the C de as revised was considered on August 17, 1933, and on August 29, 1933. at public hearings, over which Dr.

Lindsay Rogers presided. At these hearings, numerous conflicting

ideas req.pecting Code provisions were expressed by members of the

industry and other interested parties. Most of the discussions at

the numerous conference subsequent to the public hearings centered

about the minimum wage pr ivisi (ns of the Code. The manufacturers

experienced great difihult in reconcilingo their divergent viewpoints

on the minimum wage provisions, but have now virtually unanimously

agreed upon the plan incorporated in the submitted Code. The Code

submitted herewith includes the following articles:

Article I sets forth definitions of certain important terms used

in the Code.

Article II prescribes the maximum hours of work for employees

in the industry and provides for certain restrictions in the use of

productive equipment.

Article III designates a minimum wage rate of $.35 per hour, and

outlines a number of general rules respecting the application of this

rate.

Article IV embodies the general labor provisions of the Code, including the elimination of home work in the industry.

Article V constitutes a Code Authority for the industry and outlines its duties and powers.

Article VI prohibits certain unfair trade practices. defined by this

section of the Code.

Article VII provides for the distribution and use of NRA labels

and requires that all hats manufactured and sold must bear such

labels issued by the Code Authority with the approval of the

Adinistrator.

Article Viii outlines the manner in which the Code may be

m11odified.

(188)
189

Article IX states that the purpose of the Code is not to permit

monopolies or monopolistic practices, or to eliminiate, pressess, or discriminate against small enterprises.

Article X designates the effective date.

Annex A outlines certain principles for tle (i)thie fmplyerVs

in effectuating Section 2 of Article III of the ode whicl provides

for the equitable adjustment of wages above the miniun.

NATIU:E OF TilE INMli'ThZY

The various branches of the industry may be gr,)iiped into three

classifications:

1. The manufacture of men's straw hats from purchased braids,

and of Panama, hats from purchased bodies;

2. The manufacture of felt hat bodies of wool or fur in o-czllled

"back shops ";

3. The manufacture or finishing of wool or fur felt hats from

felt hat bodies in so-called " front shops."

In terms of value of product or of number of wage earners, the

fur-felt section represents by far the most important branch of the

industry. Almost four fifths of the total value of hat production

in 1929 was contributed by the ful-felt branch.

The fur-felt hat branch of the industry is located principally in

Connecticut, Pennsylvania, and New York. Straw Hat manufacturing is also concentrated to a large extent. as is evident from the

fact that in 1931 over three quarters of the production was supplied

by New York, Missouri, Massachusetts, and New Jersey.

More than 75 percent of the employees in this industry are found

in plants with 100 or more emlplovees. while over one third of the

industry work-force finds employment in the relatively few plants

employing 1,000 workers or more. While the industry includes

many small plants, they are not responsible for the large proportiol

of the workers employed. In 1931 the entire industry employed an

average work-force of 18,450 workers, of whom 14,084 were in the

fur-felt branch, as compared with 2.823 in straw-hat manufacturing,

and 1.5,313 in the wool-felt branch. The percentage of unskilled labor

in the hat industry is small, particularly in the fur-felt branch, where

nearly three quarters of all employees are male. In the straw-hat

section of the industry, about one half of all employees are male.

In recent years, the hat industry has encountered a decline in the

demand for its product. To no small extent the "hatless fad " is

responsible. The value of this industry's product in 1929 was almost

$130,000,000, but by 1931 the value had decreased nearly 40 percent

to appIroximately $79,000,000. The industry feels that, in view of

its declining trend, it cannot increase too greatly its costs and the

price for its product without inducing a greatly lowered consumption.

THE WAGE PROVISIONS OF THE CODE

The Code as originally submitted by the Hat Institute, Inc., provided for a guarantee of one minimum rate of $.35 per hour, below

which no employee should be paid. At the public hearing, and at
190

subsequent conferences, it became evident that this proposal did not

have the approval of a large group of manufacturers, many of whom

were members of the Hat Institute. To a large extent, they were

manufacturers who, because of union agreements or otherwise,

claimed to be paying wages greatly in excess of their competitors.

They maintained that if fair competition were to prevail the average

wage paid by the industry would have to be increased to a greater

extent than would be insured through the operation of a $.35 minimum alone. At ,ny event, they refused to assent to the originally

submitted Code, alnd created an association known as the Allied Hat

iMantufactuirers, Inc.. to subnmt a second proposed Code for the industry. This Code, presented during the conferences following the public hearing, provided for occupational classifications in great detail

and provided a Lseries of minimum wages for these classifications.

The plan of this group was finally simplified to provide for the determinatioln of several occupational basing points for which minimum

hourly rates were designated. Representatives of labor insisted upon

detailed occupatioinal classifications and the provision of minimum

hourly rates for these classes.

While other differences of opinion prevailed among the manufacturers, the major divergence resulted from the insistent demand of

one representative group for the insertion of occupational classifications iIn the code, und an even more strenuous demand of another representative group that but one minimum hourly rate be specified.

For many weeks, in numerous conferences, it appeared to be impossible for the manufacturers to reconcile their differences, despite the

fact. that literally scores of compromise plans were suggested and discl'1s>ed. Finally a general agreement was obtained with respect to

the plan of wage payment now embodied in the code, and which was

based upon a payroll analysis of present earnings in about fifty

manui facturing concerns.

By Article 3, Section 1, of the recommended code, it is provided

that no employee shall be paid at less than the rate of thirty-five

cents ($.'35), while Section 2 of Article 3 sets forth that wages above

the thirty-five -cent ($.35) rate are to be equitably adjusted in accordance with the principles outlined in Annex A of the Code. In that

Annex, cerain schedules of minimum hourly rates above the minimum pr1'ovided for least skilled employees are specified for the principal branches of the industry. These minimum hourly rates are

not to be effective as to specified occupational groups but to specified

percentages of total number of employees. For example, wages

a hove those received by the least skilled employees are to be equitably

wdjisted in the fur-felt industry, and the result of this adjustment is

to be that at least fifteen percent (15%) of the employees in a plant

are to receive eighty cents ($.80) per hour or above, at least an

additional twenty percent (20%) are to receive seventy cents ($.70)

an hour or above, and at least an additional twenty-five percent

(2% ) of the employees are to receive not less than fifty cents ($.50)

per hour.

The determination of the particular percentages of employees in

each wage classification was based upon an analysis of the earnings

pr1eva iling in fifty (50) hat manufacturing plants during the sunmer

of 1933.
191

That this statement of principle governiin wage adjuiimerits is

considered as experimeital is evidenced by the fact that AnnI1ex A.

provides the Adlinitrator with the right to cancel )I m1' difly thlis

provision of the code after d(ie notice anid hleariing. II ordiri that

the ade(qulacy of the provision may be appraised by the Adiniiiiis

trator, the code specifies that the Code Atilioritv sall re)Ort to the

Administrator within ninety (90) day. as to whether the plan as

prescribed constitutes an equitable adj ustinent of w ages aiid whet her

it tends to establish maximumn as well as im iniiiiim wag

Certain manufacturers in the indllstr v have maintaiined tieir illability to adjust wages to conform with the principles olitb lied in

Annex A. They have urged that a differential he provide below

the code minimum wage provisions as the bais for the adjuiAtiieit

of their wages. These manufacturers, located largely in the Middle

West, emphasize the need for this differential by I itig out their

competitive disadvantage arising from (1) the production of cheaper

hats in certain of their plants; (2) the eiployneint of le,- <'killed

workers; (3) location; (4) the employment of a relatively large proportion of female employees, particularly in some straw-bat plait.

There has been no submission of sufficient an(d adequate facts

whereby there could be an objective determination of the nerd for

establishing this differential, the necessary siz" of the (ilflerenltial. or

that exact portion of the industry to which it should prevail. In

order that this problem may be further explored, the application

of Annex A of the Code is stayed for a period not to exceed 85 davs

from the effective date. In addition, it is provided that the Code

Authority shall make such recommendation, as it deembi pr oper with

respect to the granting of differentials below the eretage iiiiiiia

of the Code to any manufacturer or group of nanufactirer-. Surh

recommendations may be approved by the Adiministrator after due

notice and hearing.

HOURS OF WORK

By the terms of Article II of the Code. it is provided that no

employee in the indtistry engaged in productive oprati U 4hall

be permitted to work in excess of forty (40) hours in any one week.

In June 1933 the employees in the fur-felt blanch of the indtustiy

were working an average full-time schedule of 5( hour. although

actual operations during most of the months were below the hours

of a full-time week. The Division of Ecoionmic Reearch aiint

Planning has estimated that a 40-hour week will posiblv re>Ilt

in the re-employment of about 2,900 workers iII the fur-felt Ibiranch

of the industry and about 4.000 workers in the entire induii-try. In

1929, over 23,000 workers were attached to this indiitry, while the

largest number employed in any month of 1933 has been etimiiatel

at about 16,000. It is possible that the 40-hour week may. therefore,

relieve a considerable extent of the unenmlployielt problem Of the

industry.

It has been maintained by labor representatives tlt the 40-hotir

week will not lead to a significant decrease in the number of unemployed hat workers. In support of this position, they call attenition to the difference in nnbers employed in 1929 as compared

with 1933. The plan suggested by the labor representatives included
192

a 35-hour week and single-slhift operation of forming equipment.

Manufacturers called attention to their seasonal requirements which

necessitate two-shift operation, and to the fact that the 35-hour week

would uiduly increaSP osts in an induistry that is experiencing a

declining trend in the demand for its product.

In order that the hours provisions of this Code may be properly

evaluated, the Code Authority has the duty to conduct an investigation to ascertain whether the maximum work week as provided is

effectuating the purpose of the Act. The results of this investigation are to be reported to the Administrator.

WOOL-FELT HATS

It is reported that ten concerns in the indiistry now make woolfelt hats, as compared with twenty-two factories in 1925. The production of this branch of the industry has declined steadily, while importations of wool-felt hats and hat bodies have increased. For the

first nine months of 1933 it is estimated that 42.8 per cent of new

wool-felt hats were of domestic manufacture, as compared with 57.2

percent which were imported. Operating under the increased costs

which resulted from compliance with the President's Reemployment

A agreement, these mills report increased difficulty in competing with

importations. From September 1 to September 15, 1933, wool-hat

plants produced 42,000 dozen women's hat bodies as compared with

nearly 77,000 dozen for the same period in 1932.

Because of the peculiar circumstances prevailing in this section of

the industry, the Code provides that wool-felt manufacturing be

subject to but one minimum-wage requirement, that no employee

receive less than $0.35 )per hour. However, the minimum wage scale

payable by this branch may be revised upon a determination of

a 'omlphlat it contemplates filing under Section 3 (e) of the

NIati lI iistrial Rec very Act.

FINDINGS

The Deputy Administrator in his final report to me on said Code

hmavinig found as herein set forth and oi the basis of all the proceed ings in this matter;

I fild 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

conmnerce which tend( to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management

under adequate goverinmemital sanctions and supervision, by eliminatming fair competitive practices, by promoting the fullest possible

utilization of the prese'nt pro(luctive capacity of industries, by avoiding Urnue restriction of prod imtion (except as may be temporarily

required), by increasingj1 the consumption of industrial and agricliltioral products through increasing purchasing power, by reducing

IamI relieving mnemnlployment, by improving standards of labor, and

by otherwise rehabilitating industry.
193

(b) Said Industry normally employs not more than 50,000 (nployees, and is not classified by me as a major industry. (c) The Code as approved complies in all reSpeCts with the pertinent provisions of sail Title of said Act. inc] l )in.)* without I lin 

tion Subl-etion (a) of Section 3. SuIb-ction (a) of Section 7, and

Subsection (b) of Section 10 ihcreof: a1 that the appliaInt association i-s an iial a,--eitAion truly rpreetative of the aforesail Iii.iu-try: aiid that -a a n ,rati)i on ios-& n 11 iliquitale

restrictiol- (ma~n-,o t') nwm111berhip thervein.

(d) The 0(ode i> wsot de:ign ifi w o :indt will not permit limnpii likQS

or monopoly --di pr-actice,-.

(e) The ( ode is not desi nad to and will not eliminate or 01rs

simAll enterpri.,e and will not operate to discriminate against thin.

f) Thowe cli ed in other -stp)s( of the economic process have not

been ilepriveJ of the right to I. iard prir to approval of said

Code.

ha' beii approved. For tihe rca Ons. tle C I 

Re-pectfully,

It('O S. JONSON,

Administhrtor.

FLBmUARY 5, 1934.

212791'---313-73-34-2
CODE OF FA IR COMPETITION FOR THE HAT MANUFACTURING INDUSTRY

To effectuate the policie: of Title I of the National Industrial

Recovery kCt. the TOlli provisions are established as a Code

Of Fair G)mpetition for tfhe Hat Manufacturing Industry, and shall

b, the staiidard of Faiir Comlnpetitioin for such industry, and shall

k, binding upon every member thereof.

RTIC: I-I)EFINITIONS

1. The term " hat manufacturing iindustry " or the term " indus1ry '. is used herein, iiicludes the mannufactuire, renovation in hat

factories. '1n(1/ or finishing, blocking- aind trimm1ingr, in the United

State' or ill allY territory, or inslilar p}-sess1io, or other place under

the jurisdiction of the Vinited States, by members of the industry.

A. Straw huts and other summer headwear (except caps and

milli nery ) jicluding all men's and boys' summer headwear finished,

blocked and/or trinned from imported or domestic hat bodies, and

Atlvw hat bodlies, and includ ing harvest hats as hereinafter defined.

B. Silk or opera hats.

C. Fm r-felt Imts, e t1icr iew,* se0old-hanid, or niade-over-used, for

men 8 Ild bovs.

1). Fur-felt Iat hodies for lmlen s and woien's hats.

1. Wool-felt hats for men.

F. Wool-felt hat bodies for men's and women's hats.

'ihe term .- Harvest hats " means hats made of hoods and/or

bodle> im11por)ted under the provisiOns of paragraph 1504 (b) (5)

of the Tarif At of 1930, with patch sweatbands not over six inches

ng. and l( )s not include Tovo bodies or any sewed braid hats.

2. T ic m - employee " a s 1s1e( d herein includes anyone engaged

il the industry in anv capacity, receiving compensation for his

service. Irrespective of the nlat ire or method of payment of such

(Oipe)Satiol and shall include alpprentices.

3. lle teIi " employer "as Iused herein includes anyone by whom

s11(ch Iemplovee is coipeisated or employed.

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

ii the n1l(illst ry as above defined either as emplover or oi his own

behalf. whether as a mnitufactrer or as a COlintractor or subcontriactor as lleleinafter defined.

5. hlie teImii " contractor 1' " subconttractor " means anyone engol !2ed Ill It'e 111(1i-try w lio nuufactures ()1 ;isseinbles products

undel coltriact. express (W inltlied, wliereb a customer directly or

indirectly supplies to such contractorr or' subcontractor money, and/or

(194)
195

Credit. and/or' materials. and/ or any services for., Or ill collection

with, filling orders for such customer 

f. The term " Institute " means the Ut Iijtitute, Inc.

8B~~~i AdliSt'UtoV ' as uc The terms President " "Act ", 1nd Adm r I s I)ed

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

tle National Idn ustrial Rec Very Act, an11 the A d nin i stri'ator of

the Said Act.

1. Except a, hereinafter proV ided, 110 elmlployee r01. 11eimb1 el Of the

Industry eigagied i mal and o' iIcclaI-ical pr cs-es ma l 

facture, shall be permitted to work in ex''ss (4 frty (10) hom s in

any one week.

The Code Aithority shall make an Ninvest 12Iint iin to a5t'tii

whether the 11.Ix)iII1 work week herein p inoided i , efiectating the

purposes of the Act, and shall report thereon to the Administrator.

2. OfIice employees, repair shop cre-, engineers, electrician, firemen, stock clerks, box packers and shippers, watching and outside

crews, sciib womell, charwomen, and others similarly employed, shall

not be permitted to work in excess of forty (40) hours il :HlV one

week, except that during the spring and fall seasons such employees

shall be permitted to work not more than an additional eight (8)

hours in any one week, and shall be paid their regular rate of coInpensation for any time worked in excess of forty (40) hours in any

one week.

The Code Authority shall report to the Administrator before

March 1, 1934, with reconunendations in respect to the hours of labor

of the excepted employees described herein, and the Admin istrator

may approve any such recommendations. Upon lii a ppr va they

shall have full force and effect as provisions hereof.

3. The maximum hours fixed in the foregoin- sections shall not

apply to supervisory employees, including foremen. receiving thirtyfive dollars ($35.00) per week or more, nor to outside salesmen.

4. The foregoing provisions for mnaxununi hours of labor mean

the maximumi hours of labor per week for each employee in the Industry so that under no circumstances shall such an employee be

knowingly emliployed or perinitted to work for oIle Or more employers

in the Industry in excess of the aggregate prescribed muiniber of hours

in a single week.

5. There shall be only one shift of labor per day in the finishing

department in the manufacture of felt hats and in the sewing, pressing, and blocking departments in the manufacture of straw, Patinama,

and other body hats (except harvest hats).

ARTICLE II--AY Ws

1. No Vimployee shall be paid at less than the rate of thirty-five

cents ($ 0.35) per hour.

2. Wages above the mininimn provided herein shall be equitably

adjusted in accordance with the piinciples set forth in Annex A of

this Code; provided, however, that such principles shall not be construed or applied so as to set maximum as well as minimum wages.
196

8. This Article establishes a minimum rate of pay regardless of

whether an employee is compensated on a time rate, piecework, or

other basis.

4. Fenale employees engaged in productive operations and performinig ,uI)stantially the same quality and quantity of work as male

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

5. Employees shall not be required or compelled to wait unreaonable lengtls of time for the assignment or continuation of work

unle.ss adequate compensation is paid for such waiting periods; and

it shall be prima facie evidence of a violation of this provision that

employees are required to wait for assignment or continuation of

work ill excess O( one continuous hour. The compensation for such

waiting period, in excess of one continuous hour, shall be based upon

the average earnings of Such employees computed upon the most

recent pay-roll records.

(. All employees shall be paid directly by their employers and the

pay-'roll records shall contain the name or identification number of,

and tie wages paid to, each employee.

ARImeLrE I-GENERAL LABOR PRovIsIONS

1. 'No person under sixteen (16) years of age shall be employed in

the Inlu-try, nor anyone under eighteen (18) years of age at operations dangerous to life or limb. The Code Authority shall submit to

the Administrator before March 1, 1934, a list of such occupations.

In any state, any employer shall be deemed to have complied with

this provision if he shall have on file a certificate or permit duly

issued by the authority in such state, empowered to issue. employment

or age certificates or permits, showing that the employee is of the

required age.

2. EmIployees shall have the right to organize and bargain collectivelv through representatives of their own choosing, and shall be

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

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

self-oraminization or in other concerted activities for the purpose of

collective bargaining or other mutual aid or protection.

3. No employee an(] no one seeking employment shall be eqiIired

as a condition of em)loyment to join any company union or to refrain from joining, organizing, or assisting a labor organization of

his own choosing.

4. Employers shall comply with the mTaximnum hours of labor, minimnuu rates of pay, and other conditions of employment approved or

prescrlib d by the Presi dent.

5. Witin each state, this Code shall not supersede any laws of

sucl ta te, impnjn wsinig m iorwe stringent requireients on einldoyers regulating thje ag4e of employees, wages, hours of work, or health, fire,

Or 0w11'ra working conditions than under this Code.

6. Emp111)loyers shall not, reclassify eipkoyees, or dlti's of occulpationis o4 ImpIlvees, s0 as to defeat the piurposes of the Act.

'. No merchandise shall Ibe man1ufactured by " home work " as

ere( infter defined.

Th (e termo " home work " as used 1 icreii, is hereby defined to mean

tile performance of any manufacturing operation, whether by machine or hand, in any home, tenement house, or basement.
197

Further to effectuate the policies of tlw Act. a (oblR AlIthoril is

hereby constituted to cooperate w Il the A hini-trLt r in the a Iinistration of this (ode.

1. Organization and Con-titutionl of the ('o1 Aluethrity.

(a.) Tle Code Authority shall cwisI-,t of t oelve (12) inlividunals

to be appointed by the Board of Directo, ()I* Ow hI -itute, in( of

one (1) individual to repre~-ent lIii jnwImhe'r, 4 the In-t litle if and

when elected b\ si ili no wmei e, by a fair no(thnI (4 -elf'ti On

approved by the Administrator.

The Ad in inistrator may appoint two (2) mdditionmill Iiiembers,

without vote. to repr(-ent such rou' or inte + or -111,1h1 Vermental agencies as he may desuquiiate.

Two (2) members. without V( te. imay b ) ppoint.d w v the Adninistrator on reconmmendat ion of the Labor Adviw-orv Board to represent Labor.

(b) The industrial a -oeiation )artioipatin )' in thw -electiOn Or

activities of the Code Authority shall

(1) Impose no inequitable re-tr'titon, on wiieiiYr-hi ip. and

(2) Submit to the Adiinistrator true copies of its articles of association, bylaws. reglilations. and any ameniu Iments when made

thereto, together with such other information as to men'iibtrship. organization, and activities as the Administrator maY v eem necessary

to effectuate the purposes of the Act.

(c) The Code Authority may appoint its own aflicers and employees and, except as herein provided. prescribe, subject to the approval of the Administrator, rules, regulations. anid bylaws for its

procedure and the conduct of its business and affairs.

(d) In order that the Code Authority shall at all int-e be truly

representative of the industry and in other respect ioimply with

the provisions of the Act, the Administrator may provide ,uch hearings as he may deem proper; and thereafter if he shall find that the

Code Authority is not truly representative or Iie- not in other respects comply with the provisions of the Act. may require an appropriate modification in the method of selicton f the ('(ode Authority,

or any sub-Code Authority.

2. The Code Aithority shall hak-e the following duties and powers

to the extent permitted by the Art, subject to the right of the

Administrator on review to approve or di-,approve anY action taken

by the Code Authority:

(a) Review all question- or disputes arising under this Code;

(b) Insure execution of the provisions of this Code and provide

for the compliance of the Industry with the provisions of the Act;

(c) Shall receive complaints of violations of this Code, make investigations thereof, provide hearings thereon, adjlist stwh complaints, and refer unadjusted violations to the Adminintiator with a

report and recommendations for appropriate action:

(d) 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 it, duties or responsibilities under this Code. and that such trade
198

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

with the provisions hereof;

(e) Investigate the importation of competitive articles into the

United States on such terms or under such conditions as to render

ineffective or seriously endanger the maintenance of the Code, and

act as the agency for makiiig complaint in respect thereof to the

President on behalf of the Industry; and

(f) T o secure front nenibers of the Industry equitable and proportionate payment of the reasonable expenses of maintaining the

Code Authority and its activities;

(GO) To cooperate with the Administrator in regulating the use of

any N.R.A. insignia solely by those members of the Industry who

have assented to and are complying with this Code;

(h) Submit to the Administrator from time to time such proposed amendments to the Code as, in its judgment will have the

effect of improving the Code or improving the results secured thereinder, and any of such proposed amendments, when approved by

the President, shall have force and effect as provisions of the Code.

Every proposed amendment shall be so submitted only after a

canvass of the opinion of the Industry by the Code Authority.

(i) To make recommendations for the limitation and supervision

of handicapped persons employed below a minimum wage.

3. For the purpose of aiding the Code Authority in judging as to

the observance of the Code, in gauging the extent to which the objectives of the Act are being attained, and considering any necessary

amendiments or additions to the Code, each member of the Industry

shall furnish to the Institute properly certified reports of such character and in such form as the Code Authority may prescribe, with the

approval of the Administrator, including-

(a) N1iimber of employees;

(b) Wages paid employees;

(e) Hours of work performed by each employee;

(d) Stocks on hand, production, and unfilled orders, together with

such other statistics and information as may be required from time

to time.

4. For the purpose of assuring to the Code Authority the advice

and sugigestions of the major branches of the Industry, the Institute

shall provide for the selection in each of the major branches of the

Industry of an Advisory Committee. Such Advisory Committees

shall make such reconmnendations to the Code Authority as they may

deei necessary and advisable with reference to their particular

bramirlies of the Industry. They may also submit recommendations

affecting the whole Industry or propose amendments to the Code.

5. The Code Authority may cause the Secretary of the Hat Institute, Incorporated, or such other confidential agency as the Code

Aithority imay determine, with the approval of the Administrator,

to imael such investigations of members of the Industry as it may

decilm advisable in order to determine whether or not any member of

the Induistry is violating any provision of this Code. All information so received shall be held secret and confidential between the

Secret ary of the Hat Institite, Incorporated, and/or confidential

agency and the reporting member.
199

6. Each member of the Industry shall, within tie (10) days after

the effective date of the Code, file with the institute a lit showuig

the prices for all its-; products, disc tv therefroimi ndi( teiim of

sale, and from and after the expirati10 of uch tell ( 0) 1a\ pwriod,

each member of the Industry shall at all thilics mnailitan1111 (mn file Vithi

the Institute a list showing the price, for all it, produtr, logtlier

with discounts and term.", and shall niot makhe any chzamnoe therein

except as provided for in this Sectioi. Each such li t -hall state

the date upon which it shall become elective. w l) oh I lte. in tile

event of a price increase, shall be not more than five (5) lays after

the date of the filing of such list a- aforesaid, and, in the event of

a price decrease, shall be not less than five (5) days after such date

of filing; provided, however, that the first list file I by any member

of the Industry as above provided, shall take effect on the date

of filing thereof. None of the prices, discoullts, Or terls, shown

in any list filed by any member of the lndiutry ay Ih o'rein provided

shall be changed except by the filing by >uch mieimber of the Il(dIustry

with the Institute of a new list. which shall become effective on the

effective (late therein specified, which date, in the event of a price

increase, shall be not more than five (5) days after the date of the

filing of such list as aforesaid, and, in the event of a price decrease, shall be not less than five (5) days after such date of filing. The

prices, discounts, and terms in effect prior to the filiin of Such nllew

list shall continue in effect until those set forth in such new list shall

become effective as above provided. All such lists shall be available

for inspection by any member of th Industry or other interested

party at all reasonable hours.

7. The Code Authority may reconnlend to the Admmistrator

discounts and ter s of sale, which, upon approval by the A(Iniistrator shall become effective provisions of this Code.

8. Nothing contained in this Code shall constitute the members

of the Code Authority partners for any purpose. Nor shall any

member of the Code Authority be liable in any manner to anyone

for any act of any other member, officer, agent, or employee of the

Code Authority nor shall any member of the Code Authority exercising reasonable diligence in the conduct of his duties hereunder,

be liable to anyone for any action or omission to act under the ('ode,

except for his own willful misfeasance or nonfeasance.

9. All information received by the Code Authority by virtue of

the operation of any provision of this Code shall be deemed confidential and shall not be published, or otherwise dissei-imiated in the

Industry, but shall be available to the Administrator.

10. No action of the Code Authority on any matter shall be effective unless the same shall have been passed by the affirmative vote

of not less than two thirds (23) of the entire voting iimebers thereof.

11. If the Administrator shall determine that any action of a

code authority or any agency thereof is unfair or mujuct or contrary

to the public interest, the Administrator may require that such action

be suspended for a period of not to exceed thirty (lays to afford an

opportunity for investigation of the merits of such action and further consideration by such code authority or agency pending final

action, which shall be taken only upon approval by the Administrator.
200

ARTICLE VI-TRADE PRACTICES

The following practices constitute unfair methods of competition

for members of the Industry and are prohibited:

1. False Markihg or Branding.-The false marking or branding of

any product of the Industry which has the tendency to mislead or

deceive customers or prospective customers, whether as to the grade, quality, quantity, substance, character, nature, origin, size, finish, or

preparation of any product of the Industry, or otherwise.

2. liMisreprcoeenta/ion or False or Msihcading Adtertising.-The

making or causing- or knowingly permitting to be made or published

any false, materially inaccurate or deceptive statement by way of

advertisement or otherwise, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Industry, or the credit terms, values, policies, or services of any member of the Industry, or otherwise, having

the tendency or capacity to mislead or deceive customers or prospective customers.

3. Coninercial Bribery.-No member of the Industry shall give,

permit to be given, or directly offer to give, anything of value for the

purpose of influencing or rewarding the action of any employee,

agent, or representative or another in relation to the business of the

employer of such employee, the principal of such agent or the representative party, without the knowledge of such employer, principal,

or party. Commercial bribery provisions shall not be construed to

prohibit a general distribution of articles commonly used for advertising, except so far as such articles are actually used for commercial

bribery as hereinabove defined.

4. In terf erecc e with Contractual Relations.-Maliciously inducing

or attempting to induce the breach of an existing oral or written

contract between a competitor and his customer or source of supply,

or interfering with or obstructing the performance of any such conltractual cities or services.

5. Dbscrunaton.-There shall be no discrimination in price

between customers of the same class by paying or allowing rebates,

refunds, commissions, or unearned discounts, or by giving prizes or

by extending to certain customers special prices, terms, services, or

privileges not extended to all customers of the same class under like

terms and conditions, except that, in his discretion, a member of the

Industry may grant any customer an allowance for advertising purposes of any suni which shall not exceed five percent (5%) of the net

amount of the purchases of such customer from such member of the

Industry before discounts in any year, provided that no such allowance shall be made by any member of the Industry unless the customer shall contribute to such advertising at least an equal amount

in such year, provided that bills rendered for such allowance are

accompanied by proof of the advertising expenditure.

6. Giving of Prizes, Pre'miums, or Gifts.-The offering or giving

of prizes, premiums, or gifts in connection with the sale of products,

or as an inducement thereto, by any scheme which involves lottery,

misrepresentation, or fraud.

7. Defamnation.-The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts,
201

questionable credit standing, or by o1thcr false represJnt ltio, or by

the false disparagement of the grade or qua lity of their goods.

8. Threat8 of Ld1iga/tio.-Tle pitbliingii or1* iralizig of

threats of suits for infringement of patents or trade-1 is ka or of ally

other legal proceedings not in good faitli, w itl the tendency ()I. effect

of harassing competitors or intirilidating their customers.

9. Espionage of o/p(tltOrs.-Seering conifident]i.l infolmiat ion

concerning the business of a conipetitor 1by a false or i isleading

statement or represents ation, by a false imperS u o i f one iI

authority, by bribery, or by any other unfair niethod.

10. Auixttutfobs.-Using or substitut inig Mny material suilIerior in

quality to that specified in the contract of sale, or using or substituting any method of manufacture not in substantial accordance

with the contract with the purchaser for the purpose of secuinlg an

unfair competitive advantage.

11. Invoices.-Invoicing products with dates other thLii dates of

shipments in order to evade published prices and terms filed III accordance with the provisions of this Code.

12. Charges al Collection..-Failing to charge for azav prmduct

delivered to a customer in accordance with the prices om file with

the Institute at the dates of sale.

13. Cost Accounting.-No member of the Industiy vhall sell any

commodity at a price below his own individual cost. However. any

member may meet the price competition of anyomme whose co-ts tuider

this Code provision are lower. Cost ,hall )e deteinnle( iII accordance with the principles enumerated in aiy standard cost systemi

formulated by the Code Authority with the approval of the Xdimiimiistrator. Distress merchandise, surplus tock, secoiudil, and saip les

shall be excepted from this provision. Subjet to the approval of

the Administrator. the Code Authority shall adopt rules anld ietrulations governing the disposal of such Imerchandise below cost.

14. CouR/gnmentf.--Subjeet to the extent inecessmry to carry out

arrangements existing on the effective date of the ('ode, \11cih a irangements shall be reported to the Code Authority, delivering

products on consignment or selling with the privilege of return.

15. ade-Orer-f d JHats.-Selling or offering for sale, old, worn,

used or discarded hats which have been cleaned and/or fitted with

ribbons, sweatbands, or linings, unless and until there is stamped

upon the exposed surface of the sweatbands of such hats the words

" Made-over-used hat " in metallic letters at least one quarter of an

inch high or clearly embossed letters as prescribed by the Code

Authority.

16. Payneiit of Wlag/es.-Eniployees shall be paid in cash or by

check at least every two weeks all wages accruing to within eight (8)

days of the date of payment, and no such check shall knowingly

be issued which may not be promptly cashed in full by the payee.

An employee voluntarily leaving employment shall be paid in full

not later than the following regular pay-day, and an employee discharged from employment shall be paid in full not later than the

business day next succeeding the date of such discharge.

Provided, however, that upon proper showing of undue hardship

the Code Authority may grant an exception from any of the above
202

proviions, subject. to the right of an employer to appeal to the

Administrator.

17. Infngeimenfs.-Ulsing, imitating or snulating any exclusive

name, trade-mark or brand owned by any other member of the Industry for the puiripose of securing an unfair competitive advantage.

ARTCLE Il-LABELS

All hats imanufactured or distributed subject to the provisions of

this Code shall bear an N.R.A. label to symbolize to purchasers of

said hats the conditions under which they were manufactured. Under the power vested in it by the Executive Order of October 14,

1933, and under grant of the necessary authority by the Administrator. the Code Authority shall have the exclusive right in this Industry to issue and furnish said labels to the members thereof.

There shall be one type of Libel for new hats and one type for

made-over-used hats. Each labul shall bear a registration number

especially assigned to each employer by the Code Authority and remain attache(1 to such hat when sold to the retail distributor. Any

and all members of the industry may apply to the Code Authority

for a permit to use such N.R.A. label, which permit to use the label

shall be granted to them, but only if and so long as they comply

with this Code. Such labels may be. attached to hats manufactured

and/or delivered prior to the effective date, if manufactured by a

member of the industry who is complying with the Code at the

time they are so attached.

The Code Authority, subject to approval by the Administrator,

shall establish rules and regulations and appropriate machinery for

the issuance of labels, and the inspection, examination and supervision of the practices of employers using such labels in observing the

provisions of this Code for the purpose of ascertaining the right of

said employer to the continued use of said labels; of protecting

purchasers in relying on said labels; to assure to each individual

employer that the symbolism of said label will be maintained by

virtue of compliance with the practices herein contained by all other

cmnployers using said labels.

The charge made for such labels by the Code Authority shall at

all times be subject to supervision and orders of the Administrator

and shall be not more than an amount necessary to cover the actual

reasonable cost thereof, including actual printing, distribution, and

administration and supervision of the use thereof as hereinabove

set forth.

With respect to the harvest hat industry, the Code Authority

shall make recommendations concerning the application of this provision so that the Administrator, in his discretion, may make this

section effective with respect to said Industry.

ARTICLE Y IIJ-LODIFICATION

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 National Industrial Recovery Act, from time to time to cancel or modify any order, ap-
203

proval, license, rule, or regulation. i>-iued uider Tit e I of said Act

and specifically, but without limitatio, to the rigit of the President

to cancel or modify his approval of this Code or aiiy conditions 1imiposed by hiiii upon his approval thereof.

2. This Code, except as to provisions required by the Act, may 13

modified on the basis of experience or changes in circumstances, suth

modification to be based upon application to the Administrator aid

such notice and heariiig as he shall specify, and to become effective onl

approval of the Administrator.

ARTICLE IX-MONOPOLIES., ETC.

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress s, or discriminate against small enterprises.

Air1CLE X-EIFFECTIvE DATE

This Code shall become effective on the second Monday after

d(ate.

Approved Code No. 259.

Registry No. 233-02.
UNIVERSITY OF FLORIDA

3 1262 08486 8008

ANNEX A

In accordance with Section 2 of Aricle III of the Code, the following principles shall guide employers in the adjustment of wages above the minimum

provided in tbiw COde:

A. In the prod71tion Of fur-felt hat bodies and fur-felt hats, at least fifteen

per cent (15%' ) of the total number of employees shall receive not less than

eighty cents ('O.SIJ) per hour ; at least an additional twenty percent (20%)

of the total number of employees shall receive not less than seventy cents

($0.70) per hour ; and at least an additional twenty-five percent (25%) of the

total number of employees shall receive not less than fifty cents ($0.50) per

hour.

B. In the pr daution of straw hats and other summer headwear as defined

in Article I. Section 1, paragraph A, of this Code (other than harvest hats)

at least fifteen percent (15%) of the total number of employees shall receive

not less than eighty cents ($0.80) per hour ; at least an additional twenty percent (20% ) of the total imber of employees shall receive not less than

seventy cents ($0.70) per hour; and at least an additional twenty-five percent

(25% ) of the total number of employees shall receive not less than forty

cents (.$0.40) per hour.

C. In the production of wool-felt hat bodies and wool-felt hats the minimum

rate of thirty-five cents ($0.35) per hour as provided in Article III, Section 1,

of this Code. shall apply provided that the Code Authority shall make such

recommiendations as it de'ms proper and necessary to cover higher paid

workers on a percentage basis similar to that set forth in the preceding subdivisius desi"un ted "A" and " B " of this section, depending upon the outconie of coiniplait filed under section 3 (e) of the Industrial Recovery Act.

The Administrator may approve such recommendations after due notice and

hearing, and upon his approval thereof they shall become effective provisions

of this C de.

I). Prmvided, that in compul in; the above percentages, there shall be exeluded office eopl yees, salesmen, partners, executives, officers, and foremen.

Provided. however, that the application of the above shall be stayed for a

period not to exceed thirty-five (35) days after the effective date hereof; and

Provided, further, that the Code Authority shall make such recommendations

:s it deems proper with respct to the granting of differentials to any manufacturer or group of manufacturers below the percentage minima herein set

forth. The Adaihiistrator may approve such differentials after due notice

and hieariiig, aild upoin his approval they shall become effective provisions'of

this Code.

Th'll( C'de Authority 4hall report to tile Administratmr within one hundred

twenty (120) days as to whether the operation of the above principles constitutes an equitable adjustment and whether it tends to establish maximum

as well as mnimmn wages, and tile Administrator after due notice and hearings, may cancel or mn'dify the prn visions (f this Annex.

(204)

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