Approved Code No. 380 Registry No. 1333-12 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE 

MACHINERY AND ACCESSORIES 

DISTRIBUTING TRADE 

AS APPROVED ON APRIL 4, 1934 

WE DO OUR PART 

UNIV. OF FL LI . 

r~~-·~ \ I I 

U.S. DEP0~1 i'OAY 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 380 

CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE MACHINERY AND ACCESSORIES 

DISTRIBUTING TRADE 

As Approved on April 4, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE u SED TEXTILE 

MACHINERY AND ACCESSORIES DISTIUBUTING TRADE 

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 Used Textile Machinery and Accessories 

Distributing Trade, 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: 

NO,v, 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, datecl 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. 

Approval recommended: 

A. R. GLANCY, 

HUGH s. JOHNSON' 

Ad1ninistrator for Industrial Recover'!/· 

Division Ad1ninistrator. 

WASHINGTON, D.C., 

April 4, 1934. 5123G0

-482-27-34 (81) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Code of Fair Competition for the 

Used Textile :Machinery and Accessories Distributing Trade, as revised after a Public Hearing held in Washington on the 19th day of 

March in accordance with the provisions of the National Industrial 

Recovery Act. 

PROYISIONS AS TO HOURS AND WAGES 

Employment is lin1ited to 8 hours a day and 40 hours and 6 days 

a week with the exception of those employees engaged in emergency 

maintenance or repair work or on emergencies occasioned by the 

necessity for services of specially skilled employees who cannot be 

replaced. A tolerance of 8 hours a week for 6 weeks in any 26 weeks' 

period is permitted. Overtime in excess of 8 hours in any 24-hour 

period or in excess of 40 hours in any 7-day period shall be paid for 

at one and one-half times the regular rate. 

A minimum wage of 40 cents an hour is established except in Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, 

:Mi sissippi, Texas, Louisiana, and Tennessee in which states a 35-cent 

rate is permitted. 

Female and male employees will receive the same rate of pay for 

sub. tantial1y the same work. 

Child labor is prohibited by the standard 16 and 18 year provisions. 

ECONOMIC EFFECT OF THE CODE 

This Trade comprising 81 companies, shows a gain in employment 

nuder the President Re-employment Agreement and the provisions 

of this Code from about 282 employees in 1932 to about 429 employees 

or an increase of approximately 52%. 

The invested capital is approximately $1,400,000.00, and the increa e in sale from about $7,400 000.00 in 1932 to about $9,400,000.00 

in 1933 is ap1 roximately 27%. Based on reports of the first two 

m nths of 1934 a further increase of 35% is estimated. 

FINDINGS 

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

having found ns herein set forth and on the basis of all the proceeding in this matter: 

1. find that: 

(a) Said Col i well le igned to promote the policies and purpo es of Title I of th National Indu trial Re overy ct, including 

removal of ob truction to the free flow of interstate and foreign 

commerce \Yhi ·h tend to dimini h the amount thereof and will pro-

(82) 
83 

vide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

by avoiding undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- ployees; and is not classified by me as a major industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation 

Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant group is 

an industrial association truly representative of the aforesaid industry; and that said association imposes no inequitable restrictions on 

admission to membership therein. 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these reasons, this Code has been approved by me. 

Respect£ ull y, 

APRIL 4, 1934. 

HUGH s. JOHNSON ' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE USED TEXTILE 

MACHINERY AND ACCESSORIES DISTRIBUTING 

TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are e tablished as a Code 

of Fair Competition for the Used Textile Machinery and Accessories 

Distributing Trade, and shall be the standards of fair competition 

for this trade and shall be binding upon every m mber thereof. 

ARTICLE II-DEFINITION 

The following terms are u ed herein with the meanings et forth 

below: 

SECTION 1. " l eel Textile Th:Iachinery and Acee ·;e;orie Distributing 

Trade" or the ' Trade ·'-the sale, exchange, di tribution, or purchase and resale, by others than manufacturers, of all used machinery, used accessories and supplie , commonly u ed in all branches 

of the textile indu -try. 

SECTION 2. " Employee "-anyone engaged in the Trade in any 

capacity, receiving compen. ation for his services, irrespective of the 

nature or method of payment of such compensation. 

SECTION 3. "Employer "-anyone by whom any such employee is 

compen ated or employed. 

SECTION 4. "Member of the Tracle ' - anyone engaged in the Tr.acle 

as above defined, either as an employer or on hi own behalf. 

SECTION 5. "A sociation " as used herein means The National Association of Dealer in Used Textile ~Iachinery .and Acee sortes, an 

existing association for the benefit of all member of the Trade. 

SECTION 6. "Pre ident ' 'Act' , an l ~'Administrator -re pectively the President of the United States, Title I of the National 

Industrial Recovery Act, and the Administrator for In lu trial 

Recovery. 

AnTICLE III-Ho R, 

SECTION 1. No employee sh.all be permitted to work more than 

forty (40) hours in any one (1) "·eek or ix (G) duy. in any one (1) 

week or eight (8) hour.· in any one (1) lay except as herein otherwise provided. 

SE TION 2. The provisions of this Arti le shall n t apply to persons employed in a manao-erial, exe utive or supervisory apacity who 

are paid Thirty-Five ($35.00) Do1lar per week or more or to outside salesmen. 

SECTION 3. Overtime ProYision . (a) Emergency Overtim . The ma. imum hour.~ fixed in.• ecti n 1 

hereof shall not apply to any emplo ·ee on C'mer 0 ·en y marntenance 

or emergency repair work jnvolving break lown. r prote tion of 

(84) 
85 

life or l?roperty, or on emergencies occasioned by the necessity for 

the services of specially skilled employees which cannot be cared for 

by the employment of .additional nien; but in any such special case at 

least one and one-half (11⁄2) times his normal rate shall be paid to 

each employee for all time worked in excess of the maximum hours 

provided in Section 1 hereof. 

(b) Ordinary Overtime. The maximum hours fixed in S ction 1 

hereof shall not apply for six (6) weeks in any twenty-six (26) 

weeks period during which overtime shall not exceed eight (8) hours 

in any one ( 1) week. In any such case at least one and one-half 

(11⁄2) times his normal rate shall be paid to such employee for all 

time worked in excess of eight (8) hours in any twenty-four (24) 

hour period or in excess of f orly ( 40) hours in any seven ( 7) day 

period. 

( c) Sunday and Legal Holiday Work. Except to watchmen, 

power plant engineers and firemen, at least one and one-half (11⁄2) 

times his normal rate shall be paid to each employee for all the time 

worked on Sundays or legal holidays. 

( d) Reporting Overtime. All overtime allowances paid as required under the provisions of paragraphs (a), (b) and ( c) of this 

Section shall be reported to the Code Authority and made available 

to tl:e Adnunistrator by the Code Authority in such detail as he may 

reqmre. 

SECTION 4. Watchmen may be permitted to work not more than 

forty-eight ( 48) hours in any one week nor more than six (6) days 

in any seven (7) day period. 

SECTION 5. No employer shall knowingly permit any employee to 

work for any time which when totaled with that already performed 

for another employer or employers exceeds the maximum permitted 

herein. 

ARTICLE IV-WAGES 

SECTION 1. The minimum wage that shall be paid to any employee, 

except as hereinafter provided, shall be not less than at the rate of 

forty ( 40¢) cents per hour. 

SECTION 2. The minimum wage that shall be paid to any employee 

in the states of Virginia, North Carolina, South Carolina, Georgia, 

Florida, Alabama, 1\1:ississippi, Louisiana, Tennessee and Texas shall 

be not less than at the rate of thirty-five (35¢) cents per hour. 

SECTION 3. No accounting, clerical, service, sales or other office 

employee shall be paid less than at the rate of Fifteen ($15.00) Dollars per week. 

SECTION 4. No hourly, daily or full-time weekly compensation for 

employees who are paid less than Thirty-five ($35.00) Dollars per 

week shall be less than such compensation existing as of June 16, 

1933; and no employee shall be paid a wage rate which will yield 

a less wage for the shorter full-time week herein established than he 

could have earned for the same class of work for the longer fulltime week existing as of June 16, 1933. \Vage increases established 

under the President's Re-employment Agreement shall at least be 

maintained. 

SECTION 5. This Article establishes a minimum compensation 

which shall apply irrespective of whether an employee is actually 

compensated on a time rate, piece-work, or other basis. 
86 

SECTION 6. Fema.le employee. performing substantially the same 

work as male employee hall re eive the same rate of pay as male 

employees. 

SECTION 7. Employers shall agree to make payment of all wa~es 

at least every two week and salaries at least monthly in lawtul 

currency or by negotiable check. These wages and salaries shall 

be exempt from any charges, fines or deductions, or payments for 

pensions, insurance or sick benefits other than those voluntarily 

paid by the wage earner or required by State law. No employer shall 

withhold wages. The employer or his agents shall accept no rebates 

directly or indirectly on such wages or salaries. Nothing in this 

paragraph is intended to cover revisions in commi sions paid to 

salesmen due to allowances or adjustments on sales. 

SECTION 8. No employer shall eliminate or restrict established 

practices or privileges heretofore granted employees. 

SECTION 9. No employee may be discharged and re-employed at 

the same class of work at a less weekly compensation than he was 

preYiously paid and no employee discharged since June 16, 1933~ may 

be re-employed at the same class of work at a less weekly compensation than he was previously paid. 

ARTICLE \ -GENERAL LABOR PROVISIONS 

SECTION 1. No person under sixteen (16) years of age shall be 

employed in the Trade, and no one under eighteen (18) years of 

age shall be employed at operations or occupations hazardous in 

nature or detrimental to health. In any State an 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. Each member of the 

Trade hall submit to the Code Authority within thirty (30) days 

after the effective date of this Code a list of hazardous occupations, 

which shall thereafter be submitted by the Code Authority to the 

Administrator. 

SECTION 2. Employees shall haYe the right to organize and bargain 

collectiYely 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 representatiYes 

or in self-organization or in other concerted activities for the purpo 'e of collective bargaining or other mutual aid or protection. 

ECTION 3. No emplo} ee and no one seeking employment shall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizino- or assi ting a labor organization of hi own choosing. 

SECTIO 4. Employer shall comply "ith the maximum hour of 

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

approved or prescribed by the President. 

SECTION 5. No provision in the Co le shall super ede any State 

or Federal law which impo es on employers more stringent requirements as to age of employees, wages, hours of work, or as to afety, 

health anitary, or general "·ork:jng con lition or insuranc or fire 

protection, than are impo. ·cd b} thjs ode. 
87 

SECTION 6. No employer shall re-clas ify employees or duties o:f 

the occupations performed or engage in any other subterfuge so as 

to defeat the purposes or provisions of the Act or of this Code. 

SECTION 7. Every employer shall make reasonable provisions for 

the safety and health of his employees at the places and during the 

hours of their employment. Standards for safety and health shall - be submitted to the Code Authority by each member of the Trade 

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

SECTION 8. Each employer shall post and keep posted in ten point 

type or larger the full labor provisions of this Code, and the name 

and address of the nearest offi ial place where Code violations may 

be reported, in conspicuous places, readily accessible to the employees 

in the normal course of their customary occupations. 

SECTION 9 . .r:Io employee shall be dismi ed by reason of making 

a complaint or giving evidence with respect to an alleged violation 

of this Code. 

ARTICLE VI-AmvnNISTM 'TI0N 

To further effectuate the policies of the Act, a Code Authority is 

hereby constituted. 

SECTION 1. Organization and constitution of Code Authority : 

(a) The Code Authority shall consist of not les than five ( 5) and 

not more than ten (10) individual . (b) Five (5) members (who shall be representative of the three 

(3) territorial areas of the Trade as determined by the Association) 

shall be elected by the Board of Governors of the Association at a 

meeting duly called for that purpose by a member vote. 

(c) If any members of the Trade who have complied with Sec- tion 4 of this Article VI who are non-members of the Association 

desire representation, they may elect two (2) members of the Code 

Authority at a meeting duly called for that purpose, by member vote. (d) The administrator may appoint not more than three (3) members of the Code Authority to repre ent him or such interests a he 

may designate. 

( e) Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authorit~ shall: 

(1) Impose no inequitable restrictions on membership, and (2) sub- mit to the Ad1ninistrator true copies of its articles of association, by--

laws, regulations, and any amendments when made thereto, together 

with such other information as to membership, organization, and 

activities as the Administrator may deem necessary to effectuate the 

purposes of the Act. 

(f) In order that the Code Authority shall at all times be truly 

representative of the Trade and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

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

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authoritv. 

(g) There shall be a Regional Committee in each territorial area 

of the Trade, hereinwfore referred to in subdivision (b) of 

th is section, to assist the Code Authority in admini tering the Code, 

said committee to consi t of not more than three (3) members of 
88 

the Trade in such area, elected by the members of the Trade in such 

area. 

SECTION 2. The Code Authority shall have the following duties 

and powers to the extent permitted by the Act: 

(a) Present to the Administrator recommendations based on conditions in the Trade as they may develop from time to time which 

will tend to effectuate the operation of the provisions of this Code 

and the policy of the National Industrial Recovery Act. Such recommendations for amendment and modification shall, upon approval 

by the Administrator after such notice and hearing as he may 

specify, become operative as a part of this Code. 

(b) Make investigations as to the functioning and observance of 

any provisions of this Code, at its own instance or on complaint by 

any person affected. 

( c) Investigate and inform the Administrator on behalf of thPTrade as to the importation of competitive articles into the United 

States in substantial quantities or in increasing ratio to domestic production on such terms or under such conditions as to render ineff ecti ve or seriously to endanger the maintenance of this Code, and act 

as an agency for making complaint to the President on behalf of 

the Trade, under the provisions of the Act, with respect thereto. 

( d) I-Iear and attempt to adjust complaints in accordance with 

law; consider proposals for amendments to this Code and make 

recommendations to the Administrator thereon. 

( e) :Make rules and regulations necessary for the administration 

of this Code, subject to the right of any affected person to appeal 

to the Administrator. 

( f) To appoint a trade practice committee which shall meet 

with the trade practice committees appointed under such other codes 

as may be related to the Trade for the purpose of formulating fair 

trade practices to govern the relationships between production and 

distribution employers under this Code and under such other codes 

to the end that such fair trade practices may be proposed to the 

Administrator as amendments to this Code and such other codes. 

(g) To insure the execution of the provisions of this Code and 

provide for compliance of the Trade with the provisions of the Act. 

SECTION 3. (a) In order to provide data necessary for the administration of this Code, all members of the Trade shall furnish to the 

Code Authority such information or reports as may be required, 

subject to the approval of the Administration. Such information 

as may be submitted by a member shall not be revealed to anyone 

not a member of the Code Authority, provided, however, that such 

information and reports shall at all times be available to the 

Administrator. 

(b) In addition to information required to be submitted to the 

Code Authority, there shall be furnished to Government Agencies 

such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act. Nothing 

contained in this Code hall relieve any member of the Trade of any 

existing obliaations to furnish reports to Government Agencies. 

SECTION 4. J\1embers of the Trade hall 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 (subject to 

the provisions of subdivision ( c) of Section 1 of this Article VI) 
89 

by assenting to and complying with the requirements of the Code 

and sustaining their reasonable share of the expense of its administration. The reasonable share of the expense of administration shall 

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

Administrator, on the basis of volume of business and/or such other 

factors as may be deemed equitable to be taken into consideration. 

SECTION 5. If the Administrator shall determine that any action 

of a Code Authority or any agency thereof may be unfair or unjust 

or contrary to the public interest, the Administrator may require 

that such action be suspended to afford an opportunity for investigation of the merjts of such action and further consideration by such 

Code Authority or agency pending final action, which shall not be 

effective unless the Administrator approves or unless he shall fail 

to disapprove.after thirty (30) days' notice to him of intention to 

proceed with such action in its original or modified form. 

SECTION 6. 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 o:f 

the Code Authority. Nor hall 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 

this Code, except for h'is own willft.11 mis-feasa nce or non-feasance. 

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

and are prohibited: 

SECTION 1. False ~1arking or Brandin,g: False marking or branding of any product of the Trade which has the tendency to mislead 

or deceive customers or prospective customers, whether as to the 

grade, quality. substance, character, nature, origin, size. finish , or 

preparation of any product of the Trade, or otherwise. 

SECTION 2. :Misrepresentation or False or Misleading Advertising t 

~laking, 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 ~Tade, quality, 

quantity, substance, character, nature, origin, size, fini h, or preparation of any product of the Trade, or the credit terms, values, policies, or services of any member of the Trade, or otherwise, having 

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

~ECTION 3. Commercial Bribery : Giving, permitting to be given 

or directly offering to give, anything of value for the purpose of 

influencing or rewarding the action of any employee, agent or representative of another in relation to the business of the employer of 

such employee, the principal of such agent or the represented party, 

without the knowledge of such employer, principal or party; provided, however, that this shall not be construed to prohibit free 

and general distribution of articles commonly used for advertising 

except as far as such a.rticles are actually used for commercial 

briberv as hereinbefore defined. 

SECTION 4. Interference with Contractual Relations: M:aliciously 

inducing or attempting to induce the breach of an oral or written 
90 

contract between a competitor and his cu tomer or source o:f supply, 

or interfering with or ob tructing the performance of any such contractual duties or services. 

SECTION 5. Secret Rebates: Secretly paying or allowing rebates, 

refunds, commissions, credits, or unearned discounts, whether in the 

form of money or otherwise. 

SECTION 6. Giving of Prizes, Premiums or Gifts: Giving or 

offering to give prizes, premiums, or gifts in connection with the sale 

of products of the Trade or as an inducement thereto, by any scheme 

which in, olves lottery, misrepresentation or fraud. 

SECTIO 7. Defan1ation: Defaming competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, 

que tionable credit standing, or by other false representation, or by 

false disparagement of the grade or quality of their g~ods. 

SECTION 8. Threats of Litigation: Publishing or circulating 

threats of suit for infringement of patent or trade marks or of any 

other !€gal proceedings not in good faith, with the tendency or 

effect of harassing competitors. 

SECTION 9. Espionage o·f Competitors: Securing confidential information concerning the business of a competitor by a £al e or misleading statement or representation, by a false impersonation of one 

in authority, by bribery, or by any other unfair method. 

ARTICLE VIII-GENERAL 

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

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

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

or modify any order, approval, license, rule, or regulation issued 

under Title I of said Act and specifically, but without limitation, to 

the right of the President to cancel or modify his approval of this 

Code or any condition in1posed by him upon his approval thereof. 

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

may be modified or supplemented on the basis of experience or 

changes in circumstances, such modification or supplements to be 

based upon application by the Code Authority to the Administrator 

with such notice of hearing as he shall specify, and to become effective 

on approval by the Administrator. 

SECTIO.t 3. Io provision of the Code shall be so applied as to per-

.,, mit monopolies or monopolistic practice~, or to eliminate, oppress, 

or discriminate against small enterprises. 

SECTION" 4. If any member of this Code is also an employer of 

labor in any other Trade of industry, the provi ions of this Code 

shall apply to and affect only that part of his busines,s whi h i in 

the Used Te~ tile ~Iachinery and Accessories Trade. 

ARTI LE IX-EFFE TIVE DATE 

This Code shall become effective on the eleventh day after its 

approval by the President. 

Approved Code No. 3 0. 

Registry ·o. 1333-12. 

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