Approved Code No. 336 Registry No. 1612-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETI~ION 

FOR THE 

COVERED BUTTON 

INDUSTRY 

AS APPROVED ON MARCH 16, 1934 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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

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Approved Code No. 336 

CODE OF FAIR COMPETITION 

FOR THE 

COVERED BUTTON INDUSTRY 

As Approved on March 16, 1934 

ORDER 

CoDE OF FAIR CoMPETITION FOR THE CoVERED BuTToN 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 Covered Button Industry, and hearings 

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

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 approved. 

• 

HUGH s. JOHNSON' 

Administrator for Industrial Recovery. 

Approval recommended: 

A. D. wHITESIDE, 

Division Administrato'l'. 

w .ASIDNGTON, D.C., 

March 16, 1934. 

46825°--425-87-34 (87) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: The Public Hearing on the Code of Fair Competition for the 

Covered Button Industry as proposed by the Covered Button 

Manufacturer's Institute, Inc., was conducted in Washington on 

October 11, 1933. 

Every person who requested an appearance was fairly heard at 

the Public Hearing in accordance with the requirements of the N ational Recovery Administration. 

The Code in final form has received the approval of the Industrial, 

Labor and Consumers' Advisory Boards and the a~proval of the 

Legal Division of the National Recovery Administration. The 

Research and Planning Division has also examined the Code and 

r endered a report on its provisions. The Association through its 

duly accredited officers has approYed the final draft of the Code on 

behalf of the Industry. 

The Industry as defined in the Code includes the manufacture of 

buttons and buckles which have as their base a mould and are covered with the self-same material of which the button or buckle becomes a part. 

Thi industry may be said to center in the Eastern Seaboard 

States, particularly, New York and Pennsylvania. It performs practically entirely a converting or assembling function, nearly all of 

the manufacturers buying a part of the materials used, and securing 

the balance from their customers for whom the commodity is made. 

The industry is highly specialized and particularly caters to the 

dress and cloak and suit industries. The Industry is directly affected 

by style variations in the industries to which it caters. 

RESUME OF THE CODE 

Article I sets forth certain definitions. 

Article II contains the maximum hour prov1s1on . Exceptions 

are made to the maxi1num hours provisions for office help and 

salesmen. 

Article III sets forth the minimum wage provisions. The basic 

minimum rate of fourteen dollars ($14.00) per week of thirty-seven 

and one-half (371j2 ) hour , is provided for employees in New York 

City, and a minimum of thirteen dollars ($13.00) per week for employees employed outside of New York City. Exceptions to these 

basic minimums are made for learners and errand boys. 

Article IV eliminates child labor and prohibits the employment 

of minors under eighteen (18) years of age at operations or occupations hazardous in nature or detrimental to health. This article also 

contains provisions mandatory under the Act. 

(8 ) 
89 

Article V provides for the establishment o£ a Code Authority and 

defines its powers and duties. 

Article VI provides for the filing of prices with the Code Authority and for the dissemination of price information by the Code 

Authority. 

Members of the Industry are prohibited from selling products at 

other prices or on other terms than contained in their price lists on 

file with the Code Authority. 

Article VII defines certain trade practices, which have heretofore 

exi ted in the Indu try as unfair, and provides that the e practices 

be eliminated. 

Article VIII contains the method by which the Code may be 

modified or amended. 

Article IX contains the provisions in reference to monopolies and 

discrimination against small enterprises required by the Act. 

Article X states the effective date of the Code. 

LABOR PROVISIONS-POSSIBLE REEMPLOYMENT 

H OU?'s.-The average working week in the Industry during the 

year 1932 was approximately forty-eight hours. Since the majority 

of the members of the Industry have adopted the President's Reemployment Agreement, the Industry is already working on the 

forty hour basis. The Code as approved, providing for a maximum 

work week of thirty-seven and one-half hours, will bring about a 

further reduction in hours and probably an increase in employment. 

The total number of employees in the Industry has been increased 

during the past six months approximately twenty-five percent. 

FINDINGS 

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

having found as herein set forth and on the basis of all the pro .. ceedings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by including and maintaining united act]on of labor and management under adequate governmental sanctions and supervisions, by 

eliminating unfair competitive practice, by promoting the fullest 

possible utilization of the :present production capacity of Industries, 

by avoiding undue restrict10n 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. 
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(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 association 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. 

Respectfully, 

MARCH 16, 1934. 

HuGH S. JoHNSoN, 

Administrator. 
CODE OF FAIR CO~IPETITION FOR THE COVERED 

BUTTON INDUSTRY 

PURPOSE 

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 Covered Button Industry and shall be 

the standard of fair competition for this industry, and shall be binding upon every member thereof. 

ARTICLE I-DEFINITION s 

1. The term " industry " as used herein includes the manufacture 

of Buttons and Buckles which have as their base a mold and are covered with the selfsame material of the article or product of which 

the button or buckle becomes a part. 

2. The term "employee " as used herein includes any person engaged in any phase of the industry, in any capacity, irrespective of 

the method of compensation or his Interest otherwise in said industry. 

3. The term " employer " as used herein includes anyone for whose 

benefit such an employee is so engaged. 

4. The term "member of the industry" as used herein includes 

anyone engaged in the industry as above defined either as an employer 

or on his own behalf. 

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

herein shall mean respectively Title I of the National Industrial 

Recovery Act, the Administrator for Industrial Reco\ery, and the 

President of the United States. 

ARTICLE II-HOURS OF LABOR 

1. No employee shall be permitted to work in excess of thirty seven 

and one-half (371j2 ) hours in any one week, or more than seven and 

one-half (7¥2) hours in any twenty-four (24) hour period, or more 

than five ( 5) days in any one week, except as hereinafter provided. 

2. Office employees may be permitted to work a maximum of fortyfour ( 44) hours in any one week. 

3. The Code Authority upon request shall permit overtime for 

employees engaged in the manual or mechanical process of manufacture for a period of not more than sixteen (16) weeks during each 

calendar year. The total nun1ber of hours overtime worked by any 

employee in each calendar year shall not exceed one hundred and 

twenty (120) hours; nor shall any employee be permitted to work 

more than ten (10) hours overtime in any one week. 

4. The provisions of this Article shall not apply to outside 

salesmen. 

5. No member of the industry nor any employee shall work in his 

shop or factory at manufacturing operations after the regular hours 

herein specified. 

(91) 
92 

6. Any member of the industry who does sub tantially the same 

work as an employee shall comply with the provi ions as to hours of 

labor. 

7. Subject to approval by Administrator the Code Authority may 

designate the. hour before which work shall not begin and the hour 

after which work shall cease for all hifts of \\Ork and may determine in which localities this rule shall apply. 

8. No 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 industry, exceeds the maximum permitted herein. 

ARTICLE III-'Y AGES 

1. No employee shall be paid le s than at the rate of fourteen 

dollars ($14.00) per week of thirty-seven and one-half (371j2 ) hours 

when employed in New York City; nor less than at the rate of thirteen dollars ($13.00) per week when employed outside of New York 

City, except as hereinafter provided. 

2. Errand boys may be paid not les. · than at the rate of twelve 

dollars ($12.00) per week of thirt) -seYen and one-half (371j2 ) hours. 

When errand boys are engaged at manual or mechanical processes 

of manufacture they shall receive the rate, of pay pro,ided in the 

foregoing section of this Article. 

3. Learners may be paid not less than at the rate of eighty percent (80%) of the minimum wage provided for herein for a period 

not to exceed three (3) months provided that at no time shall the 

total number of learners employed by any one employer exceed ten 

percent (10%) of the total number of employees. llowever, any employer shall be entitled to employ at least one learner. Errand boys, 

however shall not be paid less than at the rate of twelYe dollars 

( $12.CO) per week. 

4. Employees shall be paid not le s than at the rate of time and 

one half their normal wage rate for all time worked in exces of 

the maximum hours provided in Article II. 

5. This Article establishes a minimum rate of pay, regardless of 

whether an employee i compensated on a time rate, piece work or 

other basis. 

6. No employer shall reduce the weekly compensation for employment of employees receiving more than the minimum wages hereinabove set forth, notwithstanding the hours of work for such employment may be hereby reduced. The rate of wage paid to piece 

workers shall be raised equitably to compen ate for the reduction 

of hours under this Code. 

7. Female employees performing sub tantially the same work as 

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

ARTICLE IV-GENERAL LABOR PROVISIONS 

1. No person under sixteen ( 16) years of age hall be employed 

in the industry, nor anyone under eighteen years of age at operations 

or occupations hazardous in nature or detrimental to health. The 

Code Authority shall submit to the Administrator before May 1, 

1934, a list of such occupations. In any State an employer shall be 
93 

deemed to have complied with this proYision if he shall have on file 

a certificate or permit duly issued by the authority in such State em- powered to issue employment or age certificates or permits showing 

that the employee is of the required age. 

2. Employees shall have the right to organize and bargain collecti' ely through representatiYes 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-organization, or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 

3. 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. 

4. Employers shall comply with the maxin1um hours of labor, 

minimum rates of pay and other condition of employment approved or prescribed by the President. 

5. Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirement on any employers, 

regulating the age of employees, wages, hours of work, 'or health, 

fire or general working conditions than under this Code. 

6. Employers shall not recla8sify employees or duties of occupations performed by employees or engage in any other subterfuge 

so as to defeat the purpose of the Act. 

7. Each employer shall po t in conspicuous places accessible to 

employees full copies of Articles II: III and IV of the Code. 

ARTICLE V-ORGANIZATION, PowERs AND DuTIES OF THE ConE 

AUTHORITY 

A. ORGANIZATION AND CONSTITUTION 

1. There shall forthwith be constituted a Code Authority consisting of: 

(a) SeYen (7) r epresentatives of the Industry or any such other 

numbers as may be approved from time to time by the Administrator, to be selected as hereinafter provided. 

(b) One representative to be appointed by the Administrator 

upon the nomination of the Labor Advisory Board. 

(c) Such additional representatives without vote, not to exceed 

three, as the Administrator may appoint to represent such groups 

or interests or such governmental agencies as he may designate. 

2. The representatives of the Industry shall be selected by the 

Covered Button Manufacturers Institute. 3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall 

(1) impose no inequitable restrictions on membership, and (2) submit to the Administrator 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. 

4. In order that the Code Authority shall at all times be truly 

representative of the industry and in other respects comply with the 
94 

:provisions of the Act, the Administrator may prescribe such hearIngs as he may deem proper; and thereafter if he shall find that the 

Code Authority is not truly representative or does not in other 

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

appropriate modification in the method of selection of the Code 

Authority. 

5. Members of the industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its administration. 

Such reasonable share of the expenses 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. 

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 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 this Code, 

except for his own wilful misfeasance or nonfeasance. 

7. 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 merit-s 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 days' notice to him of intention to proceed 

with such action in its original or modified form. 

B. POWERS AND DUTIES 

1. The Code Authority shall have the following further powers 

and duties to the extent permitted by the Act. 

(a) To elect officers and to assign to them such duties as it may 

consider advisable, and to provide rules for its procedure, and its 

continuance as the administrative agency of this Code, in accordance 

with the terms of the Act and the principles herein set forth. 

(b) To receive, investigate, and adjust complaints of violations 

of this Code, and based upon such inve tigations and after such hearings as it may deem proper, to make recommendations in respect 

thereto to the proper authorities for the prosecution of such violations; provided, however, that this shall not be construed to deprive 

duly authorized governmental agencies of their power to enforce 

the provisions of this Code or of the Act. The application of this 

section shall be subject to the approval of the Administrator and 

shall be subject to any rules and regulations he may issue pursuant 

thereto. 

(c) To obtain from time to time from employers in the industry 

reports in respect to wages, hours of labor, conditions of employment, number of employees and other matters pertinent to the purposes of thi~ Code, as the Code Authority may prescribe, and to 
95 

submit periodical reports to the Administrator in such form and at 

such times as he may require, in order that the Pre ident may be 

kept informed with respect to the observance thereof. 

No individual reports shall be disclosed to any other member of 

the industry or any other party except to such governm.ental agencies 

as may be directed by the Administrator. 

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

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

herein, and to pay such agents the cost thereof; provided that such 

agency shall at all times be subject to and comply with the provi ions 

of this Code; and provided further, that nothing herein shall relieve 

the Code Authority of any of its duties and responsibilities hereunder. 

(e) To coordinate the administration of this Code with such 

other codes if any, as may be related to the Covered Button Manufacturing Industry, or any subdivisions thereof, with a view to 

promoting joint and harmonious action upon matters of common 

interest. 

(f) To make ur\eys, to compile reports, to collect statistic and 

trade information, to investigate unfair trade practices, to make 

recommendations for fair trade practices; and otherwise as ist the 

Administrator in effecting the purposes ot this Code and the Act. 

(g) To provide ways and means for financing the operation of 

said Code Authority and to determine an equitable n1ethod of 

apportioning in the industry the cost of administering this Code. 

Money raised in any manner shall not exceed in amount such rea onable cost. The application of this section shall at all times be ubject 

to review by the Administrator and shall be subject to any rules and 

regulations which may be issued by the Administrator. 

(h) To cooperate with the Administrator in regulating the use 

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

to this Code. 

(i) The Code Authority shall have the power to formulate an 

accounting system and methods of cost finding and/ or estimating, 

capable of use by all members of the industry. After such system 

and methods have been formulated, full details concerning them 

shall be made available to all members. Thereafter all members 

shall determine and/ or estimate cost in accordance with the principles of such methods. The application of this provision shall be 

subject to the approval of the Administrator. 

2. In addition to the information required to be submitted to the 

Code Authority, all members of the industry shall furnish such 

adequate information as the Administrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act to such federal and 

state agencies as the Administrator may designate. Nothing in this 

Code shall relieve any one of any exi ting obligations to furnish 

reports to government agencieP 

ARTICLE VI-PRICE LISTING 

1\tfembers of the Industry shall file with the Code Authority a 

schedule of prices and terms of sale for such products as the Code 

Authority may designate, within thirty (30) days after the effective 
96 

date of this Code and from time to time thereafter. Such schedules 

may be revised by filing new price lists with the Code Authority. 

The Code Authority shall immediately send copies of all schedules 

filed to all members of the Industry who manufacture the products 

covered by such schedules. Members of the Industry shall not sell 

their products at other prices or on other terms than set forth in 

their price lists which have been filed with the Code Authority. 

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of this Industry and are prohibited: 

1. No member of the Industry shall sell any products upon any 

other terms, except as expressly set forth in the order, contract of 

sale, or the invoice pertaining to such sale. 

2. No member of the Industry shall mark or brand any of the 

products of this Industry in such a manner as to mislead or deceive 

customers, or prospective customers, as to the grade, quality, quantity, substa.nce, character, nature, origin, size, finish, or preparations 

of any of the products of the industry. 

3. No member of the Industry shall 1nake or cause to be made, or 

permit to be made, or publish any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the grade, 

quality, quantity, substance, character, nature, origin, size, preparation of any product of the Industry having the tendency and capacity to mislead or deceive purchasers or prospective purchasers. 

·4. No member of the Industry shall make false or derogatory 

reference, either written or printed, of competitors or their products, 

or circulate harmful rumors regarding competitor's products, or 

personal or financial representation. 

5. No member of the Industry shall ship merchandise on 

memoranda or on consignment. 

6. No member of the Industry shall sell merchandise or offer 

same for sale below cost of production of such merchandise; however, any member of this Industry may sell below his own cost to 

meet the competition of another member of the Industry whose costs 

are lower. Cost for the purposes of this provision shall be determined in accordance with the accounting system provided for in 

Article V hereof. 

7. No member of the Industry shall sell merchandise at a cash 

discount in excess of two percent (:t:%) for payment on the fifteenth 

day of the month following shipment. 

8. No member of the Industry shall give sample Buttons to customers or prospective customers, unless a reasonable payment has 

been made therefor. 

9. No member of the Industry shall sell buttons other than at 

prices based upon gross lots or fractions thereof. 

10. No member of the Industry shall secure or attempt to secure 

or elicit any information regarding any competitor as to the method 

of such competitor of doing business, nor lists of the customers of 

any such competitor. il. No member of the Industry shall withhold from or insert in 

any quotation or invoice any statement that makes it inaccurate in 

any material particular. 
97 

12. No member of the Industry shall maliciously induce or attempt 

to induce the breach of an existing oral or written contract between 

a competitor and his customer or source of supply, or interfere with 

or ~bstruct the performance of any such contractual duties or 

services. 

13. No member of the Indu try shall secretly offer or make any 

payment or allowance of a rebate, refund, commission, credit, un-· earned discount or exce s allowance, whether in the form of nwney 

or otherwise, for the purpose of influencing a sale, nor shall a member secretly extend to any customer any special serYice or privilege 

not extended to all customers of the same clas . 

14. 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 representatiYe 

of another in relation to the business of the employer of uch employee, the principal of such agent or the represented party, without 

the knowledge of such employer, principal or party. Commercial 

bribery provision shall not be construed to prohibit free and general 

distribution of articles commonly used for advertising except so 

far as such articles are actually used for commercial bribery as 

hereinabove defined. 

15. No member of the Industry shall publish or circularize threats 

or suits for infringement of patents, or trade marks, or any other 

legal proceedings not in good faith with the tendency or effect of 

harassing competitors or intimidating their customer . 

ARTICLE VIII-MomFICATIOKs 

1. This Code and all the provisions thereof are expre sly 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 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 conditions imposed 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 modifications, to be based upon application to the Administrator 

and such notice and hearing as he shall specify, and to become effective upon approval of the Administrator. 

ARTICLE IX-MONOPOLIES 

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

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the tenth day after its 

approval. 

Approved Code No. 336. 

Registry No. 1612-1-01. 

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