Approved Code No. 335 Registry No. 231-08 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ART NEEDLEWORK 

INDUSTRY 

AS APPROVED ON MARCH 16, 1934 

WE 00 OUR PART 

0 - , . ~. -

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASIIINGTON : 1934 

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

v 
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Printing Office, Washington, D.C., and by district offices of the Bureau of 

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Approved Code No. 335 

CODE OF FAIR COMPETITION 

FOR THE 

ART NEEDLEWORK INDUSTRY 

As Approved on March 16, 1934 

ORDER 

ConE OF FAIR CoMPETITION FOR THE AnT N EEDLEWOP.K 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 Art Needlework 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 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 appro\ed. 

HuGHS. JoHN oN, 

Admim·strator for I ndustrial Recove1'y. 

Approval recommended: 

A. D. V\T HITES IDE, 

Dirvision Administrator. 

"\VA HIKGTON, D.C., 

M a1·ch JG, 19<>4. 

4G824 °----42J- 8G----34 (75) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

T ke W kite House. 

INTRODUCTION 

Sm: This is the report of the Administrator on the application 

for, and the public hearing on, the Code of Fair Competition for 

the Art Needl1ework Industry as propo eel by the Art Needlework 

Association. The public hearing was conducted in Washington on 

January 16, 1934. Every person who requested an appearance was 

freely heard in accordance with statutory and regulatory requirement. 

There are estimated to be 62 concern in the Industry, 37 of which 

are members of the Association and account for approximately 80 % 

of the total volume of bu ine s according to the figure pre ented 

by the Art Needlework Association. 

E OXOMICAL .AND STATISTICAL M t TERIAL 

The volume of sales in 1929, which was the peak year, was $22,-

000,000 and the total employment was 5,000 employees. The estimated volume of sale for 1933 is set at $14,000 000 and the number 

of employees at 3,500. 

The representatives of the Indu try claim that the employment 

figures will be increased by at l

1

east 15% when the Code goes into 

effect. There will also be an increa eel purchasing power for the 

individual employee under the Code. 

RESU:i\IE OF CODE PRO\'! IONS 

The Code establishes forty ( 40) hours a the basic week for produ tion and thirteen ($13.00) Dollars per work week as the minimum 

rate of pay. 

It is to be noted that there is a provision which outlaws "home 

work" by April 1 t, except for the finishing of samples and eli play 

models not intended for resale. 

Trade practices are standard and their application should bring 

about stabilized competitive conditions. 

FINDINGS 

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

having found as herein set forth and on the basis of all the proceeding in thi matter: 

I find that: 

(a) Said Code i well de ig~1ed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

(76) 
77 

r moval of b truction to the fre flow of int r ·L te and foreian 

commerce which tend to limini h the amount thereof and will provide for the general "" lfare by promotina the orO"anization of 

Inclu try for the purpo. e of c operatiY action among the trad 

oT n1 .. , by inclncino· an l maintaining unit d a tion of labor and 

manao·ement under aclequat o·overnmental an tion. and ·upervi ion by eliminatino· unfair competitiYe practi · ~· , by promotinO' 

the fnlle t pos ible util.i.zation of the prc.-ent pro lnctive capacity 

of Indu ·trie , by a Yoiding unlue re triction of production (except 

n may be temporarily r quired), by increa ing the con ·umption 

of indn trial and agricultural product through increa. ing pur- cha~ing power, by reclncino· and relieving unemployment by improving standards of labor, and by oth rwise rehabilitatinrr 

Indu try. 

(b) Said Indu try normally employs not more than 50,000 employee · and is not cla ·-·ified by me as a major Indu try. 

(c) The Code as approYed complies in all re pects with the pertinent provisions of said Title of said Act, including without limitation Sub ection (a) of ection 3, Subsection (a) of Section 7, and 

Sub ection (b) of Section 10 thereof, and that the applicant a sociation is an industrial association truly repre entative of the aforesaid Industry; and that said association impo es no inequitable 

re trictions on admission to mem.ber hip therein. 

(d) The Code i not de ·igned to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not elinlinate or 

oppress small enterprises and will not operate to discriminate 

against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

For the e rea ons, the Code has been approved. 

Re pectfully, 

~L\RCH 16, 1934. 

Huon S. JoHNSON, 

Administrator. 
CODE OF FAIR COl\1PETITION FOR THE ART NEEDLEWORK INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Art Needlework Industry, and shall be the 

standard of fair competition for such Industry and shall be binding 

upon every men1ber thereof. 

ARTICLE II-DEFINITIONS 

The term "Art Needlework Industry" as used herein includes the 

stamping and/ or importing andjor original sale of goods for art 

needlework; the processing and/ or importation of worsted, silk, 

rayon, linen, and cotton yarns and other fibres exclusively to be used 

for hand embroidery, hand-knitting, crocheting, and other art 

needlework; the sale of art needlework acces ories and tapestry 

needlepoint, and such branches or subdivisions thereof as may from 

time to time be included under the provi ions of this Code. This 

definition does not include the "manufacture of sewing, crochet, embroidery, and/ or darning cotton threa-d" as incorporated in the 

Code of Fair Competition for the Cotton Textile Industry by amendment approved on November 8, 1933. 

The term "employee" as used herein includes anyone engaged in 

the Industry in any capacity receiving compensation for his services, 

irrespectiYe of the nature or method of payment of such compensation. The term "employer" as u eel herein includes anyone by whom 

any such employee is compensated or employed. 

The term "m.ember of the Industry ' as used herein includes anyone engaged in the Industry as above defined, either as an employer 

or on his own behalf. 

The terms "President", "Act", and "Administrator" as used 

herein shall mean respectively the President of the United States, 

Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

ARTICLE III-Ho-cRs 

1. JYJ axi?num H mt?"s.-N o employee, except outside salesmen and 

employees engaged in a managerial capacity who rec.eive not less 

than Thirty-five ($35.00) doll~rs a week ~ shall be :rerm1tted to wo~·k 

in excess of forty ( 40) hours 1n any one week or eight ( 8) hours 1n 

any twenty-four (24) hour period, exc ~t that an o~c~ employee 

may be permitted to work not more than s1xty (60) add1tlonal hours 

(78) 
79 

in any calendar year but not in xce · of four ( 4) hour.' in any one 

week provided that time and one-thir 1 b paid for u ·h additional 

hour. 

2. E xceptions as to Hours.-The maximum hour · fix l in the 

foregoing ection hall not apply to any employe-e n enPrg ncy 

maintenan e or emero-ency repair work involving breakdown or protection of life or property, but in any ·u h special a at lea t one 

and one-third times his normal rate hall be paid for hour worked 

in ex e s of the m.aximum hours herein provided. 

3. tandaTd lVeek.-N o employee hall be permitted to work more 

than six (6) days in any even (7) day period. 

4. Em_ployer Working as Ernployee.-Any member of the Indu try 

who does the work of or a ists in, the actual manufacture of products of thi Industry, shall be subject to the provision of this Code 

as to hour of labor. 

5. Employment by S everal EmployeJ's.-N o employer shall knowingly permit any employee to work for any time which ·when totaled 

with that already performed with another employer, or employers, 

in this Indu. try exceed the maximum permitted herein. 

ARTICLE IV-'Y AGES 

1. 111 inimwn W age.-N o employee shall be p·aid at le ~ than the 

rate of Thirteen ($13.00) Dollars per week of forty ( 40) hour . 

2. Piecework Omnpensatio-n-M-ini1n'U1n TVages.-This Article e - tablishes a minimun1 rate of pay, irre ·pective of whether an employee 

is actually compensated on a time rate, piece-work or other ba is. 

3. lYages Above ~~ inirrvwn.-N o employee who e hours of work 

per week are reduced by the provisions of thi Code shall be paid 

les than he or she --was paid for the normal full time week in the 

four weeks ended June 17, 1933. A definite plan for the adjustment 

of those wages above the minimum herein prescribed hall be presented to the Admini tl·ator for his approval within thirty (30) day 

of the effective date of this Code. 

4. Fem.ale Employees.-F·emale employee· performing sub tantially the same work as male employee shall recciYe the ame rate of 

pay as male employees. 

ARTICLE V-GENERAL LABOR PROYISIO~S 

1. Child Labqr Provision.-No person under sixteen (16) years of 

age ·hall be employed in the Industry, nor anyone under eighteen 

(18) year of age at operations or o cupations hazarclou in nature 

or detrimental to health. The Code Authority hall ·ubmit to the 

Admini trator not lat r than sixty (60) days a'fter th effective date 

of this Cole, a li t of ·uch occupations. In any State an employ r 

shall be deem d to have complied with this proYi i n if he hall 

ha' c on file a certifi ate or. permit luly i uecl by th authority in 

uch tat empowered to 1s ue mployment or age c rtifi ate or 

permit , hawing that the mpl yee is of th require l ao· . 

2. P1·ovi ion8 from tlz e Act.-ln complian e with ection 7 (a) 

of th Act, it i provided: 
80 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall 

be free from the interference, re traint, or coercion of employer of 

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

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

collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required as a condition of employment to join any company union or 

to refrain from joining, organizing, or assisting a labor organization 

of his own choosing, and 

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

minimum rates of pay, and other condition of employment, 

approved or prescribed by the President. 3. State Laws.--VVithin each State this Code shall not supersede 

any law of such State imposing more stringent requirements on 

employer regulating the age of employees, wages, hours of work, 

or health, fire or general working conditions than under this Code. 

4. R ecla sification of Employees.-Employers shall not reclassify 

employees or duties of occupations perfonnecl by employees so as to 

defeat the purposes of the Act or engage in any other subterfuge. 

5. Posting.-Each employer shall post in conspicuous place accessible to employees full copies of Articles III, IV and V of this 

Code in ten point· type or larger and the acldre s of the neare ·t 

Compliance Board. 

6. Home Work.-All members of the Industry shall arrange to 

discontinue the system of home work by April 1, 1934. If, however, 

this provision works an unreasonable hardship on any employer 

he may, upon appeal to the Code Authority and subject to the approval of the Administrator, be allowed additional time up to a total 

of two (2) months in which to complete its abolishment. 

This provision shall not prohibit home work on the finishing of 

samples and display models not intended for re ale, but the name 

and address of every employee so engaged shall be reported to the 

Code Authority. 

7. Discharging of an E7nployee.-N o employee shall be dismissed 

by rea on of making an honest complaint or giving truthful evidence 

with respect to an alleged violation of thi Code. 

8. Standards for Safety and H ealth.-Every employer shall provide for the safety and health of his employ es at the place and 

during the hours of their employment. Standards for safety and 

health hall be submitted by the Code Authority to the Administrator 

within six (6) months after the effective date of this Code. 

ARTICLE VI-ORGANIZATION, PowER AND DuTIE oF ConE AUTHORITY 

1. Organization.-To further effectuate the policies of the Act, 

the Code Authority is hereby con tituted to administer this Code. 

(a) The Code Authority shall con ist of five individuals, or such 

oth r number as may be approved from time to time by the Adminjstrator, to be selected as hereinafter set forth, and of such additional 

members, without vote, as the Administrator, in his discretion, may 

appoint to represent such groups or governmental agencies as he may 

designate. 
81 

(b) The Code Authority member · hall be elect d a. follow. : 

Each member of the In u try who qualifi a provid in e tion 

3 of thi Article ·hall have n ote in the nomination and el ction 

to be arrange 1 by the propon nt of th Col within on month f 

the effective date th reof unle otherwi e provi l d, "\: ith the 

approval of th Admini trator. In the interim th Executive 

Comn1itt e of th Art Needl work A ociation hall a t in this 

capacity. 

(c) In order that the Code Authority ·hall at all time be truly 

repre entati-v of the Indu try and in other re pect comply with the 

provi ions of the Act, th Admini trator may provide such hearings 

as he may deem proper and thereafter if he shall find that the ode 

Authority is not truly representative or doe not in other re pe t. · 

comply with the provi ions of the Act, may require an appropriate 

modification in th method of election of the Code Authority. 

2. Each trade or indu trial a sociation, directly or indire tly participating in the election or activities of the Code Authority hall 

(1) impo e no inequitable re triction on member hip, and (2) ubmit 

to the Administrator true copies of it Article of A ociation ByLaw , regulation , an l any amendments when made thereto, together 

with such other information as to member hip, organization, and 

activities a the Administrator may deem nece ary to effectuate 

the purpo e of the Act. 

3. ~1embers of the Indu try shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to 

participate in the selection of the members thereof and to u e the 

N.R.A. Insignia by a. senting to and complying with th requirements of thi Code and sustaining their reasonable share of the 

expense of preparation, pre entation and a lmini tration of thi. 

Code. Such rea onable share of the expense of aclmini tration hall 

be determined by the Code Authority, subject to review by the 

Aclmini trator, on the ba is of volume of bu ine and/or uch 

other factors a may be deemed equitable. 

4. Nothing contained in this Code hall con titute the members 

of the Code Authority partner for any purpo e. Nor shall any 

member of the Cod Authority be liable in any manner to anyone for 

any act of any other member, officer, agent, or mploye of the Cole 

Authority exer i ·ing rea onable diligence in the conduct of hi dutie 

h reund r nor b liable to anyone for any a tion or omi ._ion to act 

un ler the Code, except for his own willful mi f asance r nonfeasance. 

5. Po~~.J e1's and Duties.-The Cod Authority hall ha' e th following power· an l duties in addition to th e el ewher provid d in 

thi · Code to the :xt nt p rmitted by thi Act: 

(a) To adopt by-law and rules and regulation :for it pro edur 

and for the aclmini tration and enforcem nt f th ole 1n a ordance with the p 'ver h rein granted to ubmit to the A lmini trator 

u h informa 1on a to it a tiYitie as th lministr, tor ma 1 d m 

nece ary t eff ctuate th purpo of the Act. 

(b) To obtain from memb rs of th In lu try for u of th o e 

Authority, for th u e f th Aclmini tr·ator in the a lmini trati n 

and nforcement of th Code and for h information of th r ident, rep rt ba l on perjods of one, two, or four we k , or ne 
82 

month, or multiple thereof, a soon as the nece sary readjustment 

within the Industry can be made and to give as istance to members 

of the In lu try in improving method , or in prescribing a unifonn 

sy tem of accounting and reporting. All individual reports shall 

be kept confidential as to me1nbers of the Industry and only general 

ummaries thereof may be published. 

(c) To receive complaints of violations of this Code, make investigations thereof and bring to the attention of the Administrator, recommendations and information relative thereto for such action as 

in his djscretion the facts warrant. 

(d) To use such trade association and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein and to pay such trade associations and agencies the cost 

thereof, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code, and that 

such trade as ociations and agencies shall at all times be subject to 

and comply with the provi ions of this Code. 

(e) To secure an equitable and proportionate payment of the 

expenses of maintaining the Code Authority and its activities from 

members of the Industry. 

(f) To cooperate with the Administrator, in regulating the use 

of the N.R.A. Insignia solely by those employers who have assented 

to, and are complying with, this Code. 

(g) To develop fair trade practices and industrial planning, including the regularization of employment and stabilization of employees for the Industry, any such recommended practices or regulations to be presented as Amendments to the Code, shall be subject 

to the approval of the Administrator. 

(h) The Code Authority may coordinate the Administration of 

this Code with such other Codes, if any, as may be related to the 

Industry, or any subdivision thereof, and may assist in promoting 

joint action upon matters of common interest by establishing a joint 

Advisory Board to which one or more of its member shall be delegated. 

(i) To initiate, consider, and make recommendations for the modification or amendment of this Code. 

(j) The Code Authority may appoint and remove and fix the 

compensation of such employees, accountants, attorneys, and officers 

as it shall deem necessary or proper for the purpose of administering the Code. 

(k) The Code Authority shall investigate the problem of design 

piracy and as soon as practicable make recommendations in connection therewith to the Administrator. 

(l) The Code Authority may grant a temporary extension, subject to the approval of the Division Administrator and/or the Ad. 

ministrator, of the hours of 1vork of factory employees upon a show. 

ing by the member requesting such extension that the limitations of 

his plant and equipm.ent will not permit an expansion in the number 

of factory employees, and that such restriction 1vorks an undue hardship upon said member, but the granting of such permission must 

not allow such member an unfair competitive advantage nor work to 

the detriment of other members. 
83 

(m) The Code Authority shall study th n ce ity for overtime 

work and shall recommend to the Admini trator a definite plan for 

its limitation, within four ( 4) months of the ffective elate. Such 

plan, upon approval by the Administrator after uch hearing as he 

may require, shall become operative as part of this Code. 

ARTICLE VII-GENER..<\.L Am\IINISTRATIVE PROYI ION 

1. In addition to information required to be submitte l to any Code 

Authority, there shall be furni hed uch stati tical information as 

the Administrator may deem neces ary for the purpo e recite l in 

Section 3 (a) of the National Indu trial Recovery Act to such Federal and State ag ncies as the Administrator may de ignat ; nor 

shall anything in this Code relieve any person of any exi ting obligation to furnish reports to Government agencies. 

2. An appeal from any action by the Code Authori() affecting the 

rights of any ·employer or employee in the Industry may be taken 

to the Administrator. 

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

Authority or any agency thereof may be unfair or unju t or contrary to the public interest, the Administrator may require that such 

action be suspended to afford an opportunity for inve tigation of 

the merits of such action and further consideration by such Code 

Authority or agency pending final action which shall not be effPCtive tmle s the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

ARTICLE VIII--TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited: 

1. False M ar·king or· Branding.-The false marking or branding 

of any product of the Industry which ha the tendency to m.i lead or 

deceive cu tamer or prospective customers, whether a. to the grade 

quality. quantity, sub tance, character, nature origin, size fini h, 

r preparation of any product of the Indu try, or otherwise. 

2. Commercial B'ribery.-No member of the Industry hall 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 

a o-ent~ or representative of another in relation to the bu. ine f the 

en1ployer of uch employee, the principal of such agent, or the repr -

sente l party without the knowledge of uch employer prin ipal or 

party. Commercial bribery provisions hall not be construed to prohibit free and g neral eli tribution of article <.:ommonly u. ed for adverti.~ino- except o far as nch articles are actually u~ed for c mmercial briber a h reinabov lefinecl. 

3. cr·et R ebat s.-The .. ecr t pa_ rm nt or alJowa 1 of r bat , 

r fun l . ., commis ion , r dits or nnearn 1 eli · ount!', 7 h ther in th 

f rm of mon y or otherwi · or the ·e rl"t ext n. ·on to rtain purc:ha r of pecial er ic · r rri vi lege x o 'e l to all 1 ur hnser 

on lik t rms anl con lition . 
8± 

4. Oonsi,qmnent.-No member of th Indu t ry hall ship goods on 

consignment except under circumstance · to be defined by the Code 

Authority, where peculiar circumstances of the Industry require 

the practice. This pro vi ion does not apply to bona fide samples. 

Any member of the Industry may take back yarn for exchange or 

credit provided that there be a replacem.cnt order of equal value 

accompanying the r eturn of yarn to be shipped immediately. 

5. False I nvoice .- To withhold from or insert in an invoice or 

order statement or entries which 1nake such documents a. fal ·e 

r ecord, wholly or in part, of the transaction represented on the face 

thereof. 

6. T e1·ms.--The terms of sale shall not be in excess of a cash discount of 2/ 10 with the option of sixty extra or 3jl0 E.O.lYI. Shipment::; made on the 25th of the month and after hall be allowed a · of the first of the month. No further dating. 

7. S ales Beloto Oost.-To sell or offer to sell any product below 

its cost except to meet the competition of a member of the Industry 

whose cost is lower. Cost is defined as the sum of direct material 

and direct labor plus overhead. The term " overhead " shall be 

defined by the Code Authority with the approval of the Admini. -

trator. The sale of finished samples below cost is not prohibited 

by the provisions of this section. 

8. S ale of S econds.-The sale or offer for sale, at a reduced price, 

of rejects, factory seconds, or discontinued lines by any member of 

the Industry in excess of ten per cent (10 %) of his total production. 

Any such sale shall be r eported to the Code Authority. Sales in 

excess of ten per cent (10% ) may be permitted by the Code Authority, upon a finding that such restriction works an undue hardship 

upon a member of the Industry, but the granting of such permission 

must not allow such member an unfair competitive advantage nor 

work to the detriment of other members. The provisions pf this 

Section hall be subject to the right of review by the Administrator. 

ARTICLE IX-l\1oDIFICATION 

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, 

approval, license, rule, or regulation is ued under Title I of aid Act 

and specifically, but without limitation, to the right of the President 

to cancel or modify his approval of this Code or any conditions 

impo eel by him upon his approval thereof. 

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

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

modification 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 President. 

ARTICLE X--~IOX POLIES 

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

against small enterprises. 
85 

ARTICLE XI-PRICE lNCHEAHES 

'Vh rea , the policy of th A t to in reas real 1 nr ha . ·ing pow r 

will b made impo ible of consummation jf pri ·e. · of g od and 

service increa e a · rar idly a wage. , it i -. re oo·nized that pri e 

increa es hould b delayed and that, when mnd ", the . ·am . hould, 

o far as reasonably pos ible, be limited to actual inrrease.· in the 

eller' · co t . 

ARTI 'LE XII-EFFE 'TIYE DATE 

Thi Code shall become effective on the tenth day after it · approYal 

by the Pre iclent. 

Approved Cede No. 335. 

Regi try No. ~31 0S. 

0 


UNIVERSITY OF FLORIDA 

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