UNIVERSITY OF FLORIDA

3 1262 08482 9901

157-A Registry No. 286-04

NATIONAL RECOVERY ADMINISTRATION

PROPOSED

CODE OF FAIR COMPETITION

FOR THE

WOOL TEXTILE INDUSTRY

AS SUBMITTED ON JULY 15, 1933

AND

AS APPROVED ON JULY 26, 1933

BY

PRESIDENT ROOSEVELT

R

U.,.

W1 DO OUR PART

1. Executive Order

2. Administrator's Report to the President

3. Text of Code as Approved

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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

JUiY 26, 1933.

EXECUTIVE ORDER

A Code of Fair Competition for the Wool Textile Industry, having been heretofore submitted to the National Recovery AdImiinistration, bearings having been held thereon, and an Amended Code

of Fair Conpetition having been submitted on July 25, 193, said

original Code and said Amended Code having been submitted by

duly qualified and authorized representatives of the Indistry coinplying with the Statutory requirements as representing eighty percent of the capacity of the Industry, and said Code being in full

compliance with all pertinent provisions of the National Industrial

Recovery Act, Now Therefore

Pursuant to the authority vested in me by Title I of the National

Industrial Recovery Act, approved June 16, 1933, on the report and

reconiniendation of the Administrator appointed by me under the

authority of said Act, and on consideration:

It is ordered that the said Code of Fair Competition for the

Wool Textile Industry, as amended and submitted on July 25, 1933, is hereby approved, subject to the following condition:

(1) To effectuate further the policies of the Act, a Wool Textile

Industry Committee be created to cooperate with the Administrator

as a Planning and Fair Practice agency for the Wool Textile Industry, which Committee shall consist of five representatives of the

Wool Textile Industry elected by a fair method of selection, to be

approved by the Administrator, and three members without vote

appointed by the Administrator.

FRANKLIN D. ROOSEVELT.

Approval Recommended:

HUGH S. JOHNSON.

(MI)
NATIONAL RECOVERY ADMINISTRATION

To the Piesident:

INTRODUCTION

This is a report of the hearing on the Code of Fair Practice for the

Wool Textile Industry in the United States, conducted in Washington on July 24th and 25th, 1933, in accordance with the provisions

of the National Industrial Recovery Act.

The following exhibits are included and attached:

1. Final code submitted.

2. Notice of hearing.

3. Bylaws of the National Association of Wool Manufacturers.

4. Notice of hearing sent by National Association of Wool

Manufacturers to its membership together with lists of

membership.

5. Statement of procedure.

6. Transcript of the records.

7. List of witnesses.

In the conduct of the hearing every person who had filed a request

for an appearance was freely heard in public and all statutory and

regulatory requirements were complied with.

The code which is attached was presented by duly qualified and

authorized representatives of the industry, and complies with the

statutory requirements, as representing fully eighty percent of the

wool textile machinery, including both looms and spindles.

ECONOMIC AND STATISTICAL ANALYSIS

The first significant factor to consider in connection with the wool

textile industry is the fact that since 1923 the gross volume of the

industry has been constantly declining, measured both by the per

capital consunj)tion of woven goods and the total machinery activity

of the industry. In 1923 the per capita consuimption of all worsted

and woolen woven goods was 7.26 square yards. In 1929 the per

capita consumption was 5.41 square yards. Per capita consumption

of dress Qoods for women's wear declined from 3.08 square yards in

1909 to .58 in 1929, an 81 percent decline. In 1923 the average broad

loom hours per week were 2,560.000: by 1932 the broad looim hours

had consistently fallen to an average of 1.170,000 hours per week.

Due to this constant decline, resulting from the inroads of competing textile fabrics and changes in living habits and styles, the

wool textile industry has had extreme difficulty in readjusting its

affairs in an orderly manner. Therefore. this code is predicated

upon the assumption that the average activity of this constant period

of decline 1923-32 is a reasonable and adequate level of activity to

be attained and maintained. The average activity of the 1923-32

(IV)
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period corresponds very closely with the activity of the inlduistry ill

the year 1929.

A characteristic of the wool textile indiustry reqiuring special

consideration is the rather wide diversification in the various

branches of the industry.

This has been recognized by the National Associ ationl (f Wool

Manufacturers in the groupings provided for in ts by vs. ,ecause of the limited availability of complete and reliable statistics

in reference to these individual branches of the industry, it is necessary for the purposes of formulating this code to use figures which

had application to the industry as a whole. It is inevitable, therefore, that particular branches of the industry may be affected diffierently by the application of a code built upon total figures of the

industry, but under the circumstances it is felt that the code as

formulated should be immediately adopted, and actual facts obtained

through the analysis of the statistics and reports provided for in

the code should become the basis in the future for any revisions

required to provide properly for the specific needs of subdivisions

of the industry.

MINIMUM WAGES AND HouRs OF LABOR

The Wool Textile Industry Code provides a minimum wage of

$14 in the North and $13 in the South for a 40-hour week. It is

significant that in this code no exceptions from the mgn/m, wage

are made for learners or any other class of workers.

According to a survey made by the sponsors of this code, covering a very substantial cross-section of the entire industry, it is

estimated that 43% of the total workers employed in the industry

are now receiving less than $14 per week, the minimum proposed

by this code. The average weekly wage of this entire group now

receiving less than $14 per week is $12.40 per week. Raising this

group to the minimum of $14 a week will provide an additional

weekly total payroll for the industry of approximately $100,000.

By reason of shortening hours, as provided by this Code, approximately 27,000 workers will be added to wool textile mills pay rolls

to operate the industry on the basis of the 1929 level of activity. The

addition of these 27,000 workers even at a minimum of $14 per week

would add an additional $378,000 weekly pay roll. Adding this

figure of $378,000 and the $100,000 accounted for above will mean the

addition of approximately $478,000 per week to the pay roll of the

industry, or $23,900,000 annually on a. basis of full-time earnings, in

addition to the amount added by reason of raising the wages of

the 57% of the wage earners in the industry now earning $14 or

more per week on a full-time week basis.

While no similar cross-section study of wages for the industry is

available for 1929, the United States Bureau of Labor Statistics in

its study of wages and hours in the woolen and worsted textile industry published June 1929, indicated that female doffers, one of the

lowest paid classifications of the industry, were paid on an average

of 28.4 cents per hour in the year 1928, which rate may be considered

comparable to the 35-cent-an-hour minimum provided in this code.

In 1929 there were approximately 147,000 wage earners employed

in the wool textile industry. The application of the 40-hour week
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proposed by this code would require the total employment of

approximately 173,000 workers to produce the 1929 volume, or

approximately 18% more than the number employed on the average

in the year 1929.

The sponsors of the code have made the following recommendations:

" The amendment to Section III prohibits the improper speeding

up of work (stretch-outs) beyond the present prevailing practices.

In adopting this provision, we wish emphatically to record our

belief that improvements in industrial methods, if applied scientifically, have always resulted in benefits both to labor and the public.

These benefits must be preserved. On the other hand, the unscientific application of this principle-the so-called stretch-out systemmay have been detrimental to labor. In order to prevent abuses, without hampering progress, we hereby request the Administrator

to appoint a committee to study this problem in order to insure a

practical definition of improper speeding up of work, and to avoid

its harmful results."

When the labor representatives clearly understood that the minimum wage proposed in the code applied without qualification or

exception, to learners, apprentices and casual labor alike, they at once

concurred in the provisions of the code.

MACHINERY-HOUR LIMITATION

The Code provides for limitation of the hours of machinery operation as a measure designed to stabilize employment and production.

In arriving at a basis for machinery-hour limitation the sponsors of

the code first gave consideration to the number of looms and spindles

available for economical and effective use. The average demand for

the 10-year period from 192, to 1932 was computed in terms of

machine-hours required. After making allowances for plant efficiency, balance of preparatory machinery, and especially for normal

seasonal variations, it was estimated that if every mill in the industry

operated two shifts constantly approximately 69 plant-hours would

be required per week to produce at the average 10-year (1923-32) rate

of Coisiimption.

The 2 shifts of 40 machine-hours are required to maintain a 69-hour

machine-hour sohedile, as only 80% of the looms in either a Woolen

or a Worsted Mill are available for operation at any one time.

The provision in the Code regulating machinery hours was the

only point at issue upon which a minority of the industry took exception. Tis minority withdrew its objection in favor of the

majority. IP WaIN a Ine exh ibiton of sportsv~n(!nsip and 7se 71-

n A z. thloroulgh analysis of this particular problem will be undertaken immediately to obtain the actual facts by accurate statistical

study and research.

In this connection it is recommended that the Administrator

appoint a committee of five, consisting of one of recognized experience with fechniical knowledge from a textile educational institution, one to represent the Administrator, one to represent the Bureau
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of Census, one of recognized ability in the field of economic and

statistical research, and one of recognized ability in the wuol textile

industry, but who has no direct personal interest in the industry.

* * * * * * 

This hearing which has brought together one of the oblest and

most highly competitive industries in the United States, itight well

serve as a fitting example of the broad, liberal give-and-tike at tituide

which the National Industrial Recovery Act and the elarifyiig statements which have been broadcast from Washington have created in

the minds of American Industrialists.

Respectfully submitted.

HUGH S. JOHNSON, Adiminh itrtr.
APPLICATION FOR APPROVAL OF CODE

NATIONAL ASSOCIATION OF AoOL MANUFACTURERS,

22 9 FoURTH AVENUE, Room 102, New York City, July 141, 1933.

Telephone Algonquin 4-6434.

General HuGh S. JOHNSON,

Admini4rator under the Aational Industrial Recovery Act,

Washington, D.C.

DEAR SIR: By this application for approval of a preliminary

code submitted herewith dealing chiefly with matters of employment as you have suggested, the wool textile industry, through this

Association, offers its whole-hearted support toward the accomplishment of the objectives of the National Industrial Recovery Act.

The code provides for a shorter work week for employees, which

will increase the total number of employees; for higher minimum

wages for the shorter week thai those now generally prevailing

for a longer week; for a limitation of the hours of operation of

productive machinery, with a view to the adjustment of output

to demand and to the stabilization of employment; and for the

elimination of any employment of minors below the age of sixteen.

We understand that these objectives are the first and immediate

concern of the administration and we desire to cooperate in their

attainment in our industry.

The cost of the products of the industry will be materially increased by the larger wage cost per unit of product resulting from

the establishment of this code. We realize, however, that our

action in becoming subject to the code is part of the large program

of the administration looking toward the prompt increase of purchasing power and the general improvement of economic conditions.

We stand ready to go forward in this industry with the initial step

toward the success of this vital effort.

We have endeavored to gather together all available data bearing

upon the subjects which we have dealt with in the code. Existing

data concerning present and past operations and such additional

facts as could be secured without unduly delavintg the submission

of this code are not sufficient to allow intelligent dealing with long

range economic planning for this industry. To this end we have

)rovided in the code for a broad program of factual information as

the future basis for suggesting modifications of or supplements to

this code.

We must direct attention to the fact that the economic welfare of

the employees in this field has been (lepen(lent in considerable measure

upon the tariff on foreign iiportations. If the facts show that the

increased cost of manufacture resulting from this code requires proceedings under the section of the Act providing for protection from

(vill)
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undue importations of competing foreign products, we expect that

the necessary official action will be taken in order to preserve security

of employment and to maintain the industry.

Believing that our employees and customers oI tlheir 1' Irt will

loyally cooperate, we submit this code coiifidenit t hat the Presideint,

with the recommendation of yourself and yomur associates kinder the

Act, will hereafter approve such mo lificat ions thereof covering

wages, hours of labor, or of machinery, and such supplemeiits to this

code coverinir fair trade practices or other subjects as will be necessary to enable this industry successfully to adjust production to

changing demands, to stabilize employment, and to serve its customers and the public.

Respectfully submitted.

THE NATIONAL ASSOCIATION OF WOOL MANUFACTURERS.

By following directors:

Harold S. Edwards, Walter Humphreys, Lewis A. Hirt], William H. Folwell, Abbot Stevens, Frederic W. Tipper, H. M. Ashby, A. E. Bonin, Marland C. Hobbs,

Frank D. Levering, Albert C. Bowman, Rowe B. Metcalf, Percy Ainsworth, Louis Bachmann, F. C. Dlimaine, Jr., Curt E. Forstmann, Norman J. Fox,

Franklin W. Hobbs, Richard Lennihan, Allen R.

Mitchell, Jr., Addison L. Green, Millard D. Brown,

Arthur S. Harding, Fred Wolstenholme, J. L. Hutcheson, Jr., Charles F. H. Johnson, R. A. Julia. Austin T. Levy, William B. MacColl, J. L. Meader, Lionel

J. Noah, W. S. Nutter, Moses Pendleton.

[SEAL] By HAROLD S. EDwARDs, President.
SUBMISSION OF AMENDMENTS TO CODE

NATIONAL ASSOCIATION OF WOOL MANUFACTURERS

229 FOURTH AVENUE, NEW YORK CITY

WASIIINGTON, D.C., July 25, 1933.

GENERAL HUGH S. JOHNSON,

Administrator under National Industrial Recovery Act,

Washington, D.C.

DEAR SIR: We submit herewith a copy of three resolutions adopted

by the Board of Directors of the National Association of Wool Manufacturers at a meeting held in this city on July 24, 1933. These

resolutions make amendments to the Code as presented to the Administrator on July 15, 1933, pursuant to authority granted to the

Board of Directors by the Association in a resolution adopted by the

Association on July 14, 1933.

These amendments are made pursuant to suggestions made by

you, and we desire to make some comments thereon.

The amendment to Section II guarantees, in the higher brackets,

at least the same weekly wages for the shorter week as were previously paid for the longer week. It omits any provision regarding

the preservation of existing differentials between employees in the

higher brackets. The National Association of Wool Manufacturers

plans a careful investigation of the wage problem, with a view to

obtaining greater uniformity in wage rates throughout the industry.

We believe that a rigid limitation on the changing of existing differentials, if written into the code, would unduly hamper such a

program without adding to the practical effect of the code.

The amendment to Section III prohibits the improper speeding

up of work (stretch-outs) beyond present prevailing practices. In

adopting this provision, we wish emphatically to record our belief

that improvements in industrial methods, if applied scientifically, have always resulted in benefits both to labor and to the public.

These benefits must be preserved. On the other hand, the unscientific

application of this principle-the so-called stretch-out system-may

have been detrimental to labor. In order to prevent abuses, without

hampering progress, we hereby request the Administrator to appoint

a coinniittee to study this problem in order to insure i practical

definition )f improper speeding up of work, and to avoid its harmful

results.

Respectfully submitted.

NAT1 ( xNAL ASSOCIATION OF WOOL MANUFACTURERS,

By HAROLD S. EDwARDS, President.

(x)
CODE OF FAIR COMPETITION FOR THE WOOL TEXTILE

INDUSTRY

SUBMITTED BY NATIONAL ASSOCIATION OF WOOL MANTFACTURERS ON JULY 15, 1933, AS AMENDED BY RESOLUTIONS OF

THE BOARD OF DIRECTORS OF THE ASSOCIATION ON JULY 24, 1933

To effectuate the policy of Title I of the National Indust ry Recovery Aut, during the period of the emergency, by reducing unem ployment, improving the standards of labor, eliniiiiatimg practices

inimical to the interests of the public, employees, and employers, and

otherwise to improve the condition of the wool manifacturing

industry, to increase the consumption of industrial and agricultural

products by increasing purchasing power. and in other respects. the

following provisions are established as a code of fair competition

for the wool textile industry:

I-DEFINTIONS

As used herein the term "wool textile industry " shall include the

following branches: Manufacture of worsted men's wear, worsted

women's wear. carded men's wear, carded women's wear, blankets,

cotton warp fabrics, reworked wool, knitted woolen goods, worsted

sales yarn (Bradford System), worsted sales yarn (French System),

carded sales yarli, anl coimbing,, wool scouring and carbonizing, and

such other related branches as may from time to time be included

under the provisions of tbis code.

The term " employers " shall mean all persons who employ labor

in the conduct of any branch of the wool textile industry, as defined

above.

The term "employees" shall mean all persons employed in the

conduct of any branch of the wool textile industry. as definedd above.

The term " effective (late " shall mean Augtist 14, 198;83. or, if this

code shall not have been approved by the President at least t wo weeks

prior to that date, then the second Monday after such approval.

The term " person " shall mean any individual, partnership, association, trust, or corporatiOn.

IT-MINAIUM WAGE

On and after the effective date, the wages that shall be paid by

any employer to any employee. employed North of the Mason and

Dixon Line, shall be at not less than the rate of 35. an hour, or of $14

per week for forty hours of labor.

On and after the effective date, the wages that shall be paid by

any employer to any employee, employed South of the Mason and

Dixon Line, shall be at not less than the rate of 32 0 an hour, or of

$13 per week for forty hours of labor.

11982-133-17-33 (1)
As to w aWes of emnployees now receiving not less than the minimum

wae es~tablihd by this ode. no employer shall, on or after the

effective date, pay any uiheli eimiplovee a wave rate which will yield

a less waae ior a work week of fortV hours than such employee was

receiving for the same class of work for the established longer week

of forty-eight hours or more prevailing prior to the effective date.

III-HOURS OF LABOR

On and after the effective (late no employer shall employ any employee in excess of forty hours per week, this, however, not to apply

to Iihours of labor for repairshop crews, engineers, electricians, firemen,

office, sales, and supervisory staff, shipping, watching, and outside

crews.

Until adoption of further provisions of this code that may prove

necessary to prevent any improper speeding up of work (stretchouts), no employee of any mill in the wool textile industry shall be

required to do any work in excess of the practices as to the class of

work of such employee prevailing on July 1, 1933, unless such increase

is submitted to and approved by the Administrator.

IV-HOURS OF OPERATION OF 'MACHINERY

On and after the effective date, no employer shall operate any comb

or any spinning spindle or any loom or any knitting machine for

more than two shifts of forty hours each per week.

V-EMPLOYMENT OF MINORS

On and after the effective date, employers shall not employ any

minor under the age of sixteen years.

VI-REPORTS

For the purpose of supplyinig the President and the Administrator

with requisite data as to the observance and effectiveness of this code,

and as to whether the wool textile industry is taking appropriate

steps to enable it intelligently to adjust its hours of labor, wages, and productive capacity to changing demands of consumers, industrial trends, and other conditions in accordance with the declared

policy of the National Industrial Recoverv Act, each employer shall

furnish regular reports as hereinafter provided. The National Association of Wool Manufacturers, 229 Fourth Avenue, New York City, is hereby constituted the agency to provide for the collection and

receipt of such reports and for the forwarding of the substance of

such reports to the President, the Association to provide for receiving

andl holding such reports themselves in confidence. Such reports

shall be in such form, and shall be furnished at such intervals, as

shall be prescribed by the Association, and shall contain such information relevant to the purposes of this code, as shall be prescribed

by the Association from time to time, including information with

respect to the following or related subjects:

1. Employment, hours, wages, and wage rates.
2. Production, orders, illiigs, and stocks (ini prOCess ad I finisicI)

of products manufactured.

3. Financial andI cost data.

4. Act i vi ty, pu rcliases, sales, ai1d sc appin of machiry.

5. Consumption -id stocks of raw materials.

Vt 1-Pion C'oxTAcus

It is hereby declared to be the policy of this code thiat where thl u

costs of executing contracts for wool or worsted yars or textiles,

entered into prior to the effective date of this code, are inreised as

a result of the operation of provisions of this code, appropriate a1-

justments of such contracts should be made so as to reflect sI.h

increased costs, and, further, that where the performance of orders

for wool or worsted yarns or textiles, accepted prior to the effective

date of this code, is delayed or prolonged as a result of the operation

of provisions of this code, appropriate additional time should be

allowed for the completion of such orders. The National Association of Wool Manufacturers is hereby constituted an agency to assist

in effecting such adjustments, where such adjustments are ]lot agreed

upon by the parties.

VIII-PROvIsIONS FROM RECOVERY ACT

Employers shall comply with the requirements of the National

Industrial Recovery Act as follows:

1. That employees shall have the right to organize and bargain

collectively through representatives of their own clioosing, anI 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-organization or in other cmncerted activities for the pmrpose

of collective bargaining or other mutual aid or protection:

2. That 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

3. That employers shall comply with the maxinuini hours (f labor,

minimum rates of pay, and other conditions of ciployment, approved

or prescribed by the President.

IX-CANCELLATION OR MoNDF1CAT!iON

This code and all the provisions thereof are express! v made silbject to the right of the President, in accordance with Sec. 10 (b)

of Title I of the National Industrial Recoverv Act, from time to

time to cancel or mo(lify any order, approval, license, rule, or regulation issued under Title I of said Act.

X-CHANoEs AND Aim)ITNs

Such of the provisions of this cole as are not required to be included therein by the National Industrial Recovery Act may, with

the approval of the President, be niolified or elimiiated in such

manner as may be indicated by the needs of the public, by changes
4

in circumstances, or by experience; all the provisions of this code,

unless so modified or eliminated, shall remain in effect until the

expiration date of Title I of the National Industrial Recovery Act.

In order to enable the industry to conduct its operations subject

to the provisions of this code, to establish fair trade practices within

the industry and with those dealing with the industry, and otherwise

to effectuate the purposes of Title I of the National Industrial Recovery Act, supplementary provisions of this code or additional

codes may be submitted from time to time for the approval of

the President.

XI-PARTIAL INVALIDITY

If any provision of this code is declared invalid or unenforceable.

the remaining provisions thereof shall nevertheless continue in full

force and effect in the same manner as if they had been separately

presented for approval and approved by the President.

I, WALTER HUMPHREYS, Secretary of the National Association of

Wool Manufacturers, do hereby certify that the foregoing is a true

copy of the Code of Fair Competition for the wool textile industry

submitted to the Administrator under the National Industrial Recovery Act on July 15, 1933, as amended by vote of the Board of

Directors of the said Association at a meeting held at the Hotel

Washington, Washington, D.C., on July 24, 1933.

Dated July 25, 1933.

[SEAL] WALTER HUMPHREYS,

Secretary.

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